1.1 	A bill for an act
1.2 	relating to human services; modifying provisions relating to aging and older adult 
1.3 	services, disability services, substance use disorder treatment, housing supports, 
1.4 	health care, direct care and treatment services, and the Department of Health; 
1.5 	establishing the Department of Direct Care and Treatment and the Advisory Council 
1.6 	on Direct Care and Treatment; dissolving the Direct Care and Treatment executive 
1.7 	board; establishing the Age-Friendly Minnesota Council; repealing the legislative 
1.8 	task force on guardianship; extending the Mentally Ill and Dangerous Civil 
1.9 	Commitment Reform Task Force; making conforming changes; establishing grants; 
1.10 	requiring reports; appropriating money;amending Minnesota Statutes 2024, sections 
1.11 	10.65, subdivision 2; 15.01; 15.06, subdivision 1; 15A.0815, subdivision 2; 
1.12 	15A.082, subdivisions 1, 3, 7; 43A.08, subdivisions 1, 1a; 43A.241; 144A.01, 
1.13 	subdivision 4; 144A.071, subdivisions 4a, 4d; 144A.161, subdivision 10; 
1.14 	144A.1888; 144A.351, subdivision 1; 144A.474, subdivision 11; 144A.4799; 
1.15 	144G.08, subdivision 15; 144G.31, subdivision 8; 144G.52, subdivisions 1, 2, 3, 
1.16 	5, 7, 8, 9, 10; 144G.53; 144G.54, subdivisions 2, 3, 7; 144G.55, subdivisions 1, 
1.17 	2; 179A.54, by adding a subdivision; 245.021; 245.073; 245A.042, by adding a 
1.18 	subdivision; 245A.06, subdivisions 1a, 2; 245C.16, subdivision 1; 245D.091, 
1.19 	subdivisions 2, 3; 245D.12; 245G.01, subdivision 13b, by adding subdivisions; 
1.20 	245G.02, subdivision 2; 245G.05, subdivision 1; 245G.07, subdivisions 1, 3, 4, 
1.21 	by adding subdivisions; 245G.11, subdivision 6, by adding a subdivision; 245G.22, 
1.22 	subdivisions 11, 15; 246.13, subdivision 1; 246B.01, by adding a subdivision; 
1.23 	246C.01; 246C.015, subdivision 3, by adding a subdivision; 246C.02, subdivision 
1.24 	1; 246C.04, subdivisions 2, 3; 246C.07, subdivisions 1, 2, 8; 246C.08; 246C.09, 
1.25 	subdivision 3; 246C.091, subdivisions 2, 3, 4; 252.021, by adding a subdivision; 
1.26 	252.32, subdivision 3; 252.50, subdivision 5; 253.195, by adding a subdivision; 
1.27 	253B.02, subdivisions 3, 4c, by adding a subdivision; 253B.03, subdivision 7; 
1.28 	253B.041, subdivision 4; 253B.09, subdivision 3a; 253B.18, subdivision 6; 
1.29 	253B.19, subdivision 2; 253B.20, subdivision 2; 253D.02, subdivision 3, by adding 
1.30 	a subdivision; 254A.19, subdivision 4; 254B.01, subdivision 10; 254B.02, 
1.31 	subdivision 5; 254B.03, subdivisions 1, 3; 254B.04, subdivisions 1a, 5, 6, 6a; 
1.32 	254B.05, subdivisions 1, 4, 5, by adding a subdivision; 254B.06, by adding a 
1.33 	subdivision; 254B.09, subdivision 2; 254B.19, subdivision 1; 256.01, subdivision 
1.34 	29; 256.042, subdivision 4; 256.043, subdivisions 3, 3a; 256.045, subdivisions 6, 
1.35 	7, by adding a subdivision; 256.476, subdivision 4; 256.9657, subdivision 1; 
1.36 	256.9752, subdivisions 2, 3; 256B.04, subdivision 21; 256B.0625, subdivisions 
1.37 	5m, 17; 256B.0659, subdivision 17a; 256B.0757, subdivision 4c; 256B.0761, 
1.38 	subdivision 4; 256B.0911, subdivisions 1, 10, 13, 14, 24, 26, by adding 
2.1 	subdivisions; 256B.0924, subdivision 6; 256B.0949, subdivisions 2, 15, 16, 16a, 
2.2 	by adding a subdivision; 256B.19, subdivision 1; 256B.431, subdivision 30; 
2.3 	256B.434, subdivision 4; 256B.4914, subdivisions 3, 5, 5a, 5b, 6a, 6b, 6c, 7a, 7b, 
2.4 	7c, 8, 9, by adding subdivisions; 256B.761; 256B.766; 256B.85, subdivisions 2, 
2.5 	5, 7, 7a, 8, 8a, 11, 13, 16, 17a, by adding a subdivision; 256B.851, subdivisions 
2.6 	5, 6, 7, by adding subdivisions; 256G.08, subdivisions 1, 2; 256G.09, subdivisions 
2.7 	1, 2, 3; 256I.05, by adding subdivisions; 256R.02, subdivisions 18, 19, 22, by 
2.8 	adding subdivisions; 256R.10, subdivision 8; 256R.23, subdivisions 5, 7, 8; 
2.9 	256R.24, subdivision 3; 256R.25; 256R.26, subdivision 9; 256R.27, subdivisions 
2.10 	2, 3; 256R.43; 260E.14, subdivision 1; 352.91, subdivisions 2a, 3c, 3d, 4a; 
2.11 	524.3-801; 611.43, by adding a subdivision; 611.46, subdivision 1; 611.55, by 
2.12 	adding a subdivision; 611.57, subdivision 2; 626.5572, subdivision 13; Laws 2021, 
2.13 	chapter 30, article 12, section 5, as amended; Laws 2021, First Special Session 
2.14 	chapter 7, article 13, sections 73; 75, subdivision 6, as amended; Laws 2023, 
2.15 	chapter 61, article 1, section 61, subdivision 4; article 9, section 2, subdivisions 
2.16 	13, 16, as amended; Laws 2024, chapter 127, article 49, section 9, subdivisions 1, 
2.17 	8, 9, by adding a subdivision; article 50, section 41, subdivision 2; article 53, 
2.18 	section 2, subdivisions 13, 15; proposing coding for new law in Minnesota Statutes, 
2.19 	chapters 145D; 245A; 245D; 246; 246C; 256; 256R; repealing Minnesota Statutes 
2.20 	2024, sections 144A.071, subdivision 4c; 245A.042, subdivisions 2, 3, 4; 245G.01, 
2.21 	subdivision 20d; 245G.07, subdivision 2; 246B.01, subdivision 2; 246C.015, 
2.22 	subdivisions 5a, 6; 246C.06, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 246C.07, 
2.23 	subdivisions 4, 5; 252.021, subdivision 2; 253.195, subdivision 2; 253B.02, 
2.24 	subdivision 7b; 253D.02, subdivision 7a; 254B.01, subdivisions 5, 15; 254B.18; 
2.25 	256.045, subdivision 1a; 256G.02, subdivision 5a; 256R.02, subdivision 38; 
2.26 	256R.12, subdivision 10; 256R.23, subdivision 6; 256R.36; 256R.40; 256R.41; 
2.27 	256R.481; Laws 2023, chapter 59, article 3, section 11; Laws 2024, chapter 79, 
2.28 	article 1, section 20; Laws 2024, chapter 125, article 5, sections 40; 41; Laws 2024, 
2.29 	chapter 127, article 46, section 39; article 50, sections 40; 41, subdivisions 1, 3.
2.30 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.31 	ARTICLE 1
2.32 	AGING AND OLDER ADULT SERVICES

2.33 	Section 1. Minnesota Statutes 2024, section 144A.071, subdivision 4a, is amended to read:
2.34 		Subd. 4a.Exceptions for replacement beds.  It is in the best interest of the state to 
2.35 	ensure that nursing homes and boarding care homes continue to meet the physical plant 
2.36 	licensing and certification requirements by permitting certain construction projects. Facilities 
2.37 	should be maintained in condition to satisfy the physical and emotional needs of residents 
2.38 	while allowing the state to maintain control over nursing home expenditure growth.
2.39 	The commissioner of health in coordination with the commissioner of human services, 
2.40 	may approve the renovation, replacement, upgrading, or relocation of a nursing home or 
2.41 	boarding care home, under the following conditions:
2.42 	(a) to license or certify beds in a new facility constructed to replace a facility or to make 
2.43 	repairs in an existing facility that was destroyed or damaged after June 30, 1987, by fire, 
2.44 	lightning, or other hazard provided:
3.1 	(i) destruction was not caused by the intentional act of or at the direction of a controlling 
3.2 	person of the facility;
3.3 	(ii) at the time the facility was destroyed or damaged the controlling persons of the 
3.4 	facility maintained insurance coverage for the type of hazard that occurred in an amount 
3.5 	that a reasonable person would conclude was adequate;
3.6 	(iii) the net proceeds from an insurance settlement for the damages caused by the hazard 
3.7 	are applied to the cost of the new facility or repairs;
3.8 	(iv) the number of licensed and certified beds in the new facility does not exceed the 
3.9 	number of licensed and certified beds in the destroyed facility; and
3.10 	(v) the commissioner determines that the replacement beds are needed to prevent an 
3.11 	inadequate supply of beds.
3.12 	Project construction costs incurred for repairs authorized under this clause shall not be 
3.13 	considered in the dollar threshold amount defined in subdivision 2;
3.14 	(b) to license or certify beds that are moved from one location to another within a nursing 
3.15 	home facility, provided the total costs of remodeling performed in conjunction with the 
3.16 	relocation of beds does not exceed $1,000,000;
3.17 	(c) to license or certify beds in a project recommended for approval under section 
3.18 	144A.073;
3.19 	(d) to license or certify beds that are moved from an existing state nursing home to a 
3.20 	different state facility, provided there is no net increase in the number of state nursing home 
3.21 	beds;
3.22 	(e) to certify and license as nursing home beds boarding care beds in a certified boarding 
3.23 	care facility if the beds meet the standards for nursing home licensure, or in a facility that 
3.24 	was granted an exception to the moratorium under section 144A.073, and if the cost of any 
3.25 	remodeling of the facility does not exceed $1,000,000. If boarding care beds are licensed 
3.26 	as nursing home beds, the number of boarding care beds in the facility must not increase 
3.27 	beyond the number remaining at the time of the upgrade in licensure. The provisions 
3.28 	contained in section 144A.073 regarding the upgrading of the facilities do not apply to 
3.29 	facilities that satisfy these requirements;
3.30 	(f) to license and certify up to 40 beds transferred from an existing facility owned and 
3.31 	operated by the Amherst H. Wilder Foundation in the city of St. Paul to a new unit at the 
3.32 	same location as the existing facility that will serve persons with Alzheimer's disease and 
3.33 	other related disorders. The transfer of beds may occur gradually or in stages, provided the 
4.1 	total number of beds transferred does not exceed 40. At the time of licensure and certification 
4.2 	of a bed or beds in the new unit, the commissioner of health shall delicense and decertify 
4.3 	the same number of beds in the existing facility. As a condition of receiving a license or 
4.4 	certification under this clause, the facility must make a written commitment to the 
4.5 	commissioner of human services that it will not seek to receive an increase in its 
4.6 	property-related payment rate as a result of the transfers allowed under this paragraph;
4.7 	(g) (f) to license and certify nursing home beds to replace currently licensed and certified 
4.8 	boarding care beds which may be located either in a remodeled or renovated boarding care 
4.9 	or nursing home facility or in a remodeled, renovated, newly constructed, or replacement 
4.10 	nursing home facility within the identifiable complex of health care facilities in which the 
4.11 	currently licensed boarding care beds are presently located, provided that the number of 
4.12 	boarding care beds in the facility or complex are decreased by the number to be licensed as 
4.13 	nursing home beds and further provided that, if the total costs of new construction, 
4.14 	replacement, remodeling, or renovation exceed ten percent of the appraised value of the 
4.15 	facility or $200,000, whichever is less, the facility makes a written commitment to the 
4.16 	commissioner of human services that it will not seek to receive an increase in its 
4.17 	property-related payment rate by reason of the new construction, replacement, remodeling, 
4.18 	or renovation. The provisions contained in section 144A.073 regarding the upgrading of 
4.19 	facilities do not apply to facilities that satisfy these requirements;
4.20 	(h) (g) to license as a nursing home and certify as a nursing facility a facility that is 
4.21 	licensed as a boarding care facility but not certified under the medical assistance program, 
4.22 	but only if the commissioner of human services certifies to the commissioner of health that 
4.23 	licensing the facility as a nursing home and certifying the facility as a nursing facility will 
4.24 	result in a net annual savings to the state general fund of $200,000 or more;
4.25 	(i) to certify, after September 30, 1992, and prior to July 1, 1993, existing nursing home 
4.26 	beds in a facility that was licensed and in operation prior to January 1, 1992;
4.27 	(j) to license and certify new nursing home beds to replace beds in a facility acquired 
4.28 	by the Minneapolis Community Development Agency as part of redevelopment activities 
4.29 	in a city of the first class, provided the new facility is located within three miles of the site 
4.30 	of the old facility. Operating and property costs for the new facility must be determined and 
4.31 	allowed under section 256B.431 or 256B.434 or chapter 256R;
4.32 	(k) to license and certify up to 20 new nursing home beds in a community-operated 
4.33 	hospital and attached convalescent and nursing care facility with 40 beds on April 21, 1991, 
4.34 	that suspended operation of the hospital in April 1986. The commissioner of human services 
5.1 	shall provide the facility with the same per diem property-related payment rate for each 
5.2 	additional licensed and certified bed as it will receive for its existing 40 beds;
5.3 	(l) (h) to license or certify beds in renovation, replacement, or upgrading projects as 
5.4 	defined in section 144A.073, subdivision 1, so long as the cumulative total costs of the 
5.5 	facility's remodeling projects do not exceed $1,000,000;
5.6 	(m) to license and certify beds that are moved from one location to another for the 
5.7 	purposes of converting up to five four-bed wards to single or double occupancy rooms in 
5.8 	a nursing home that, as of January 1, 1993, was county-owned and had a licensed capacity 
5.9 	of 115 beds;
5.10 	(n) to allow a facility that on April 16, 1993, was a 106-bed licensed and certified nursing 
5.11 	facility located in Minneapolis to layaway all of its licensed and certified nursing home 
5.12 	beds. These beds may be relicensed and recertified in a newly constructed teaching nursing 
5.13 	home facility affiliated with a teaching hospital upon approval by the legislature. The 
5.14 	proposal must be developed in consultation with the interagency committee on long-term 
5.15 	care planning. The beds on layaway status shall have the same status as voluntarily delicensed 
5.16 	and decertified beds, except that beds on layaway status remain subject to the surcharge in 
5.17 	section 256.9657. This layaway provision expires July 1, 1998;
5.18 	(o) to allow a project which will be completed in conjunction with an approved 
5.19 	moratorium exception project for a nursing home in southern Cass County and which is 
5.20 	directly related to that portion of the facility that must be repaired, renovated, or replaced, 
5.21 	to correct an emergency plumbing problem for which a state correction order has been 
5.22 	issued and which must be corrected by August 31, 1993;
5.23 	(p) (i) to allow a facility that on April 16, 1993, was a 368-bed licensed and certified 
5.24 	nursing facility located in Minneapolis to layaway, upon 30 days prior written notice to the 
5.25 	commissioner, up to 30 of the facility's licensed and certified beds by converting three-bed 
5.26 	wards to single or double occupancy. Beds on layaway status shall have the same status as 
5.27 	voluntarily delicensed and decertified beds except that beds on layaway status remain subject 
5.28 	to the surcharge in section 256.9657, remain subject to the license application and renewal 
5.29 	fees under section 144A.07 and shall be subject to a $100 per bed reactivation fee. In 
5.30 	addition, at any time within three years of the effective date of the layaway, the beds on 
5.31 	layaway status may be:;
5.32 	(1) relicensed and recertified upon relocation and reactivation of some or all of the beds 
5.33 	to an existing licensed and certified facility or facilities located in Pine River, Brainerd, or 
5.34 	International Falls; provided that the total project construction costs related to the relocation 
6.1 	of beds from layaway status for any facility receiving relocated beds may not exceed the 
6.2 	dollar threshold provided in subdivision 2 unless the construction project has been approved 
6.3 	through the moratorium exception process under section 144A.073;
6.4 	(2) relicensed and recertified, upon reactivation of some or all of the beds within the 
6.5 	facility which placed the beds in layaway status, if the commissioner has determined a need 
6.6 	for the reactivation of the beds on layaway status.
6.7 	The property-related payment rate of a facility placing beds on layaway status must be 
6.8 	adjusted by the incremental change in its rental per diem after recalculating the rental per 
6.9 	diem as provided in section 256B.431, subdivision 3a, paragraph (c). The property-related 
6.10 	payment rate for a facility relicensing and recertifying beds from layaway status must be 
6.11 	adjusted by the incremental change in its rental per diem after recalculating its rental per 
6.12 	diem using the number of beds after the relicensing to establish the facility's capacity day 
6.13 	divisor, which shall be effective the first day of the month following the month in which 
6.14 	the relicensing and recertification became effective. Any beds remaining on layaway status 
6.15 	more than three years after the date the layaway status became effective must be removed 
6.16 	from layaway status and immediately delicensed and decertified;
6.17 	(q) to license and certify beds in a renovation and remodeling project to convert 12 
6.18 	four-bed wards into 24 two-bed rooms, expand space, and add improvements in a nursing 
6.19 	home that, as of January 1, 1994, met the following conditions: the nursing home was located 
6.20 	in Ramsey County; had a licensed capacity of 154 beds; and had been ranked among the 
6.21 	top 15 applicants by the 1993 moratorium exceptions advisory review panel. The total 
6.22 	project construction cost estimate for this project must not exceed the cost estimate submitted 
6.23 	in connection with the 1993 moratorium exception process;
6.24 	(r) to license and certify up to 117 beds that are relocated from a licensed and certified 
6.25 	138-bed nursing facility located in St. Paul to a hospital with 130 licensed hospital beds 
6.26 	located in South St. Paul, provided that the nursing facility and hospital are owned by the 
6.27 	same or a related organization and that prior to the date the relocation is completed the 
6.28 	hospital ceases operation of its inpatient hospital services at that hospital. After relocation, 
6.29 	the nursing facility's status shall be the same as it was prior to relocation. The nursing 
6.30 	facility's property-related payment rate resulting from the project authorized in this paragraph 
6.31 	shall become effective no earlier than April 1, 1996. For purposes of calculating the 
6.32 	incremental change in the facility's rental per diem resulting from this project, the allowable 
6.33 	appraised value of the nursing facility portion of the existing health care facility physical 
6.34 	plant prior to the renovation and relocation may not exceed $2,490,000;
7.1 	(s) to license and certify two beds in a facility to replace beds that were voluntarily 
7.2 	delicensed and decertified on June 28, 1991;
7.3 	(t) (j) to allow 16 licensed and certified beds located on July 1, 1994, in a 142-bed nursing 
7.4 	home and 21-bed boarding care home facility in Minneapolis, notwithstanding the licensure 
7.5 	and certification after July 1, 1995, of the Minneapolis facility as a 147-bed nursing home 
7.6 	facility after completion of a construction project approved in 1993 under section 144A.073, 
7.7 	to be laid away upon 30 days' prior written notice to the commissioner. Beds on layaway 
7.8 	status shall have the same status as voluntarily delicensed or decertified beds except that 
7.9 	they shall remain subject to the surcharge in section 256.9657. The 16 beds on layaway 
7.10 	status may be relicensed as nursing home beds and recertified at any time within five years 
7.11 	of the effective date of the layaway upon relocation of some or all of the beds to a licensed 
7.12 	and certified facility located in Watertown, provided that the total project construction costs 
7.13 	related to the relocation of beds from layaway status for the Watertown facility may not 
7.14 	exceed the dollar threshold provided in subdivision 2 unless the construction project has 
7.15 	been approved through the moratorium exception process under section 144A.073.;
7.16 	The property-related payment rate of the facility placing beds on layaway status must 
7.17 	be adjusted by the incremental change in its rental per diem after recalculating the rental 
7.18 	per diem as provided in section 256B.431, subdivision 3a, paragraph (c). The property-related 
7.19 	payment rate for the facility relicensing and recertifying beds from layaway status must be 
7.20 	adjusted by the incremental change in its rental per diem after recalculating its rental per 
7.21 	diem using the number of beds after the relicensing to establish the facility's capacity day 
7.22 	divisor, which shall be effective the first day of the month following the month in which 
7.23 	the relicensing and recertification became effective. Any beds remaining on layaway status 
7.24 	more than five years after the date the layaway status became effective must be removed 
7.25 	from layaway status and immediately delicensed and decertified;
7.26 	(u) to license and certify beds that are moved within an existing area of a facility or to 
7.27 	a newly constructed addition which is built for the purpose of eliminating three- and four-bed 
7.28 	rooms and adding space for dining, lounge areas, bathing rooms, and ancillary service areas 
7.29 	in a nursing home that, as of January 1, 1995, was located in Fridley and had a licensed 
7.30 	capacity of 129 beds;
7.31 	(v) to relocate 36 beds in Crow Wing County and four beds from Hennepin County to 
7.32 	a 160-bed facility in Crow Wing County, provided all the affected beds are under common 
7.33 	ownership;
8.1 	(w) to license and certify a total replacement project of up to 49 beds located in Norman 
8.2 	County that are relocated from a nursing home destroyed by flood and whose residents were 
8.3 	relocated to other nursing homes. The operating cost payment rates for the new nursing 
8.4 	facility shall be determined based on the interim and settle-up payment provisions of section 
8.5 	256R.27 and the reimbursement provisions of chapter 256R. Property-related reimbursement 
8.6 	rates shall be determined under section 256R.26, taking into account any federal or state 
8.7 	flood-related loans or grants provided to the facility;
8.8 	(x) to license and certify to the licensee of a nursing home in Polk County that was 
8.9 	destroyed by flood in 1997 replacement projects with a total of up to 129 beds, with at least 
8.10 	25 beds to be located in Polk County and up to 104 beds distributed among up to three other 
8.11 	counties. These beds may only be distributed to counties with fewer than the median number 
8.12 	of age intensity adjusted beds per thousand, as most recently published by the commissioner 
8.13 	of human services. If the licensee chooses to distribute beds outside of Polk County under 
8.14 	this paragraph, prior to distributing the beds, the commissioner of health must approve the 
8.15 	location in which the licensee plans to distribute the beds. The commissioner of health shall 
8.16 	consult with the commissioner of human services prior to approving the location of the 
8.17 	proposed beds. The licensee may combine these beds with beds relocated from other nursing 
8.18 	facilities as provided in section 144A.073, subdivision 3c. The operating payment rates for 
8.19 	the new nursing facilities shall be determined based on the interim and settle-up payment 
8.20 	provisions of Minnesota Rules, parts 9549.0010 to 9549.0080. Property-related 
8.21 	reimbursement rates shall be determined under section 256R.26. If the replacement beds 
8.22 	permitted under this paragraph are combined with beds from other nursing facilities, the 
8.23 	rates shall be calculated as the weighted average of rates determined as provided in this 
8.24 	paragraph and section 256R.50;
8.25 	(y) to license and certify beds in a renovation and remodeling project to convert 13 
8.26 	three-bed wards into 13 two-bed rooms and 13 single-bed rooms, expand space, and add 
8.27 	improvements in a nursing home that, as of January 1, 1994, met the following conditions: 
8.28 	the nursing home was located in Ramsey County, was not owned by a hospital corporation, 
8.29 	had a licensed capacity of 64 beds, and had been ranked among the top 15 applicants by 
8.30 	the 1993 moratorium exceptions advisory review panel. The total project construction cost 
8.31 	estimate for this project must not exceed the cost estimate submitted in connection with the 
8.32 	1993 moratorium exception process;
8.33 	(z) to license and certify up to 150 nursing home beds to replace an existing 285 bed 
8.34 	nursing facility located in St. Paul. The replacement project shall include both the renovation 
8.35 	of existing buildings and the construction of new facilities at the existing site. The reduction 
9.1 	in the licensed capacity of the existing facility shall occur during the construction project 
9.2 	as beds are taken out of service due to the construction process. Prior to the start of the 
9.3 	construction process, the facility shall provide written information to the commissioner of 
9.4 	health describing the process for bed reduction, plans for the relocation of residents, and 
9.5 	the estimated construction schedule. The relocation of residents shall be in accordance with 
9.6 	the provisions of law and rule;
9.7 	(aa) to allow the commissioner of human services to license an additional 36 beds to 
9.8 	provide residential services for the physically disabled under Minnesota Rules, parts 
9.9 	9570.2000 to 9570.3400, in a 198-bed nursing home located in Red Wing, provided that 
9.10 	the total number of licensed and certified beds at the facility does not increase;
9.11 	(bb) to license and certify a new facility in St. Louis County with 44 beds constructed 
9.12 	to replace an existing facility in St. Louis County with 31 beds, which has resident rooms 
9.13 	on two separate floors and an antiquated elevator that creates safety concerns for residents 
9.14 	and prevents nonambulatory residents from residing on the second floor. The project shall 
9.15 	include the elimination of three- and four-bed rooms;
9.16 	(cc) (k) to license and certify four beds in a 16-bed certified boarding care home in 
9.17 	Minneapolis to replace beds that were voluntarily delicensed and decertified on or before 
9.18 	March 31, 1992. The licensure and certification is conditional upon the facility periodically 
9.19 	assessing and adjusting its resident mix and other factors which may contribute to a potential 
9.20 	institution for mental disease declaration. The commissioner of human services shall retain 
9.21 	the authority to audit the facility at any time and shall require the facility to comply with 
9.22 	any requirements necessary to prevent an institution for mental disease declaration, including 
9.23 	delicensure and decertification of beds, if necessary; or
9.24 	(dd) to license and certify 72 beds in an existing facility in Mille Lacs County with 80 
9.25 	beds as part of a renovation project. The renovation must include construction of an addition 
9.26 	to accommodate ten residents with beginning and midstage dementia in a self-contained 
9.27 	living unit; creation of three resident households where dining, activities, and support spaces 
9.28 	are located near resident living quarters; designation of four beds for rehabilitation in a 
9.29 	self-contained area; designation of 30 private rooms; and other improvements;
9.30 	(ee) to license and certify beds in a facility that has undergone replacement or remodeling 
9.31 	as part of a planned closure under section 256R.40;
9.32 	(ff) to license and certify a total replacement project of up to 124 beds located in Wilkin 
9.33 	County that are in need of relocation from a nursing home significantly damaged by flood. 
9.34 	The operating cost payment rates for the new nursing facility shall be determined based on 
10.1 	the interim and settle-up payment provisions of section 256R.27 and the reimbursement 
10.2 	provisions of chapter 256R. Property-related reimbursement rates shall be determined under 
10.3 	section 256R.26, taking into account any federal or state flood-related loans or grants 
10.4 	provided to the facility;
10.5 	(gg) to allow the commissioner of human services to license an additional nine beds to 
10.6 	provide residential services for the physically disabled under Minnesota Rules, parts 
10.7 	9570.2000 to 9570.3400, in a 240-bed nursing home located in Duluth, provided that the 
10.8 	total number of licensed and certified beds at the facility does not increase;
10.9 	(hh) to license and certify up to 120 new nursing facility beds to replace beds in a facility 
10.10 	in Anoka County, which was licensed for 98 beds as of July 1, 2000, provided the new 
10.11 	facility is located within four miles of the existing facility and is in Anoka County. Operating 
10.12 	and property rates shall be determined and allowed under chapter 256R and Minnesota 
10.13 	Rules, parts 9549.0010 to 9549.0080; or
10.14 	(ii) to transfer up to 98 beds of a 129-licensed bed facility located in Anoka County that, 
10.15 	as of March 25, 2001, is in the active process of closing, to a 122-licensed bed nonprofit 
10.16 	nursing facility located in the city of Columbia Heights or its affiliate. The transfer is effective 
10.17 	when the receiving facility notifies the commissioner in writing of the number of beds 
10.18 	accepted. The commissioner shall place all transferred beds on layaway status held in the 
10.19 	name of the receiving facility. The layaway adjustment provisions of section 256B.431, 
10.20 	subdivision 30, do not apply to this layaway. The receiving facility may only remove the 
10.21 	beds from layaway for recertification and relicensure at the receiving facility's current site, 
10.22 	or at a newly constructed facility located in Anoka County. The receiving facility must 
10.23 	receive statutory authorization before removing these beds from layaway status, or may 
10.24 	remove these beds from layaway status if removal from layaway status is part of a 
10.25 	moratorium exception project approved by the commissioner under section 144A.073.
10.26 	(l) to license or certify beds under provisions coded in this subdivision before the 
10.27 	enactment of this law as paragraphs (f), (i) to (k), (m) to (bb), and (dd) to (ii).

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

10.29 	Sec. 2. Minnesota Statutes 2024, section 144A.071, subdivision 4d, is amended to read:
10.30 		Subd. 4d.Consolidation of nursing facilities. (a) The commissioner of health, in 
10.31 	consultation with the commissioner of human services, may approve a request for net savings 
10.32 	from a consolidation of nursing facilities which includes to be applied to reduce the costs 
10.33 	of a moratorium exception project application under section 144A.073, subdivision 2. For 
11.1 	purposes of this subdivision, "consolidation" means the closure of one or more facilities 
11.2 	and the upgrading of the physical plant of the remaining nursing facility or facilities, the 
11.3 	costs of which exceed the threshold project limit under subdivision 2, clause (a). The 
11.4 	commissioners shall consider the criteria in this section, section 144A.073, and section 
11.5 	256R.40, in approving or rejecting a consolidation proposal. In the event the commissioners 
11.6 	approve the request, the commissioner of human services shall calculate an external fixed 
11.7 	costs rate adjustment according to clauses (1) to (3):.
11.8 	(1) the closure of beds shall not be eligible for a planned closure rate adjustment under 
11.9 	section 256R.40, subdivision 5;
11.10 	(2) the construction project permitted in this clause shall not be eligible for a threshold 
11.11 	project rate adjustment under section 256B.434, subdivision 4f, or a moratorium exception 
11.12 	adjustment under section 144A.073; and
11.13 	(3) the payment rate for external fixed costs for a remaining facility or facilities shall 
11.14 	be increased by an amount equal to 65 percent of the projected net cost savings to the state 
11.15 	calculated in paragraph (b), divided by the state's medical assistance percentage of medical 
11.16 	assistance dollars, and then divided by estimated medical assistance resident days, as 
11.17 	determined in paragraph (c), of the remaining nursing facility or facilities in the request in 
11.18 	this paragraph. The rate adjustment is effective on the first day of the month of January or 
11.19 	July, whichever date occurs first following both the completion of the construction upgrades 
11.20 	in the consolidation plan and the complete closure of the facility or facilities designated for 
11.21 	closure in the consolidation plan. If more than one facility is receiving upgrades in the 
11.22 	consolidation plan, each facility's date of construction completion must be evaluated 
11.23 	separately.
11.24 	(b) For purposes of calculating the net cost savings to the state, the commissioner shall 
11.25 	consider clauses (1) to (7) (6):
11.26 	(1) the annual savings from estimated medical assistance payments from the net number 
11.27 	of beds closed taking into consideration only beds that are in active service on the date of 
11.28 	the request and that have been in active service for at least three years;
11.29 	(2) the estimated annual cost of increased case load of individuals receiving services 
11.30 	under the elderly waiver;
11.31 	(3) the estimated annual cost of elderly waiver recipients receiving support under housing 
11.32 	support under chapter 256I;
12.1 	(4) the estimated annual cost of increased case load of individuals receiving services 
12.2 	under the alternative care program;
12.3 	(5) the annual loss of license surcharge payments on closed beds; and
12.4 	(6) the savings from not paying planned closure rate adjustments that the facilities would 
12.5 	otherwise be eligible for under section 256R.40; and
12.6 	(7) (6) the savings from not paying external fixed costs payment rate adjustments
12.7 	providing a rate adjustment from submission of renovation costs that would otherwise be 
12.8 	eligible as threshold projects under section 256B.434, subdivision 4f.
12.9 	(c) For purposes of the calculation in paragraph (a), clause (3), the estimated medical 
12.10 	assistance resident days of the remaining facility or facilities shall be computed assuming 
12.11 	95 percent occupancy multiplied by the historical percentage of medical assistance resident 
12.12 	days of the remaining facility or facilities, as reported on the facility's or facilities' most 
12.13 	recent nursing facility statistical and cost report filed before the plan of closure is submitted, 
12.14 	multiplied by 365.
12.15 	(d) (c) For purposes of calculating net cost of savings to the state in paragraph (b), the 
12.16 	average occupancy percentages will be those reported on the facility's or facilities' most 
12.17 	recent nursing facility statistical and cost report filed before the plan of closure is submitted, 
12.18 	and the average payment rates shall be calculated based on the approved payment rates in 
12.19 	effect at the time the consolidation request is submitted.
12.20 	(e) To qualify for the external fixed costs payment rate adjustment under this subdivision, 
12.21 	the closing facilities shall:
12.22 	(1) submit an application for closure according to section 256R.40, subdivision 2; and
12.23 	(2) follow the resident relocation provisions of section 144A.161.
12.24 	(f) (d) The county or counties in which a facility or facilities are closed under this 
12.25 	subdivision shall not be eligible for designation as a hardship area under subdivision 3 for 
12.26 	five years from the date of the approval of the proposed consolidation. The applicant shall 
12.27 	notify the county of this limitation and the county shall acknowledge this in a letter of 
12.28 	support.
12.29 	(g) Projects approved on or after March 1, 2020, are not subject to paragraph (a), clauses 
12.30 	(2) and (3), and paragraph (c). The 65 (e) Sixty-five percent of the projected net cost savings 
12.31 	to the state calculated in paragraph (b) must be applied to the moratorium cost of the project 
12.32 	and the remainder must be added to the moratorium funding under section 144A.073, 
12.33 	subdivision 11.
13.1 	(h) (f) Consolidation project applications not approved by the commissioner prior to 
13.2 	March 1, 2020, are subject to the moratorium process under section 144A.073, subdivision 
13.3 	2. Upon request by the applicant, the commissioner may extend this deadline to August 1, 
13.4 	2020, so long as the facilities, bed numbers, and counties specified in the original application 
13.5 	are not altered. Proposals from facilities seeking approval for a consolidation project prior 
13.6 	to March 1, 2020, must be received by the commissioner no later than January 1, 2020. This 
13.7 	paragraph expires August 1, 2020.

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

13.9 	Sec. 3. Minnesota Statutes 2024, section 144A.161, subdivision 10, is amended to read:
13.10 		Subd. 10.Facility closure rate adjustment. Upon the request of a closing facility, the 
13.11 	commissioner of human services must allow the facility a closure rate adjustment equal to 
13.12 	a 50 percent payment rate increase to reimburse relocation costs or other costs related to 
13.13 	facility closure. This rate increase is effective on the date the facility's occupancy decreases 
13.14 	to 90 percent of capacity days after the written notice of closure is distributed under 
13.15 	subdivision 5 and shall remain in effect for a period of up to 60 days. The commissioner 
13.16 	shall delay the implementation of rate adjustments under section 256R.40, subdivisions 5
13.17 	and 6, to offset the cost of this rate adjustment.

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

13.19 	Sec. 4. Minnesota Statutes 2024, section 144A.1888, is amended to read:
13.20 	144A.1888 REUSE OF FACILITIES.
13.21 	Notwithstanding any local ordinance related to development, planning, or zoning to the 
13.22 	contrary, the conversion or reuse of a nursing home that closes or that curtails, reduces, or 
13.23 	changes operations shall be considered a conforming use permitted under local law, provided 
13.24 	that the facility is converted to another long-term care service approved by a regional 
13.25 	planning group under section 256R.40 that serves a smaller number of persons than the 
13.26 	number of persons served before the closure or curtailment, reduction, or change in 
13.27 	operations.

13.28 	Sec. 5. Minnesota Statutes 2024, section 256.9657, subdivision 1, is amended to read:
13.29 		Subdivision 1.Nursing home license surcharge. (a) Effective July 1, 1993, each 
13.30 	non-state-operated nursing home licensed under chapter 144A shall pay to the commissioner 
13.31 	an annual surcharge according to the schedule in subdivision 4. The surcharge shall be 
13.32 	calculated as $620 $2,815 per licensed bed. If the number of licensed beds is reduced, the 
14.1 	surcharge shall be based on the number of remaining licensed beds the second month 
14.2 	following the receipt of timely notice by the commissioner of human services that beds 
14.3 	have been delicensed. The nursing home must notify the commissioner of health in writing 
14.4 	when beds are delicensed. The commissioner of health must notify the commissioner of 
14.5 	human services within ten working days after receiving written notification. If the notification 
14.6 	is received by the commissioner of human services by the 15th of the month, the invoice 
14.7 	for the second following month must be reduced to recognize the delicensing of beds. Beds 
14.8 	on layaway status continue to be subject to the surcharge. The commissioner of human 
14.9 	services must acknowledge a medical care surcharge appeal within 30 days of receipt of 
14.10 	the written appeal from the provider.
14.11 	(b) Effective July 1, 1994, the surcharge in paragraph (a) shall be increased to $625.
14.12 	(c) Effective August 15, 2002, the surcharge under paragraph (b) shall be increased to 
14.13 	$990.
14.14 	(d) Effective July 15, 2003, the surcharge under paragraph (c) shall be increased to 
14.15 	$2,815.
14.16 	(e) (b) The commissioner may reduce, and may subsequently restore, the surcharge 
14.17 	under paragraph (d) (a) based on the commissioner's determination of a permissible surcharge.

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

14.19 	Sec. 6. [256.9746] AGE-FRIENDLY MINNESOTA COUNCIL.
14.20 		Subdivision 1.Establishment. The Age-Friendly Minnesota Council is established to 
14.21 	coordinate work across sectors, including state government, nonprofits, communities, 
14.22 	businesses, and others, to ensure the state is an age-friendly state.
14.23 		Subd. 2.Membership. (a) The council consists of 15 voting members.
14.24 	(b) Each of the following commissioners and multimember state agencies must designate 
14.25 	an Age-Friendly Minnesota lead and appoint that designee to serve as a council member:
14.26 	(1) the Minnesota Board on Aging;
14.27 	(2) the commissioner of commerce;
14.28 	(3) the commissioner of employment and economic development;
14.29 	(4) the commissioner of health;
14.30 	(5) the commissioner of housing;
14.31 	(6) the commissioner of human services;
15.1 	(7) the commissioner of transportation;
15.2 	(8) the commissioner of veterans affairs; and
15.3 	(9) the Metropolitan Council.
15.4 	(c) The governor shall appoint six additional public members to represent older adults 
15.5 	in communities experiencing disparities, direct service caregivers, businesses, experts on 
15.6 	aging, local governments, and Tribal communities. The appointment, terms, compensation, 
15.7 	and removal of public members shall be as provided in section 15.059.
15.8 	(d) Other state agencies and boards may participate on the council in a nonvoting capacity.
15.9 		Subd. 3.Chairperson; executive committee. (a) The council shall elect a chairperson 
15.10 	and other officers as it deems necessary and in accordance with the council's operating 
15.11 	procedures.
15.12 	(b) The council shall be governed by an executive committee elected by the members 
15.13 	of the council. One member of the executive committee must be the council chairperson.
15.14 	(c) The executive committee may appoint additional subcommittees and work groups 
15.15 	as necessary to fulfill the duties of the council.
15.16 		Subd. 4.Meetings. (a) The council shall meet at the call of the chairperson or at the 
15.17 	request of a majority of council members. The council must meet at least quarterly. Meetings 
15.18 	of the council are subject to section 13D.01, and notice of its meetings is governed by section 
15.19 	13D.04.
15.20 	(b) Notwithstanding section 13D.01, the council may conduct a meeting of its members 
15.21 	by telephone or other electronic means so long as:
15.22 	(1) all members of the council participating in the meeting, wherever their physical 
15.23 	location, can hear one another and can hear all discussion and testimony;
15.24 	(2) members of the public present at the regular meeting location of the council can hear 
15.25 	all discussion and all votes of members of the council and participate in testimony;
15.26 	(3) at least one member of the council is physically present at the regular meeting location; 
15.27 	and
15.28 	(4) each member's vote on each issue is identified and recorded by a roll call.
15.29 	(c) Each member of the council participating in a meeting by telephone or other electronic 
15.30 	means is considered present at the meeting for the purposes of determining a quorum and 
15.31 	participating in all proceedings. If telephone or another electronic means is used to conduct 
16.1 	a meeting, the council, to the extent practicable, shall allow a person to monitor the meeting 
16.2 	from a remote location. If telephone or another electronic means is used to conduct a regular, 
16.3 	special, or emergency meeting, the council shall provide notice of the regular meeting 
16.4 	location, that some members may participate by electronic means, and of the option to 
16.5 	monitor the meeting electronically from a remote location.
16.6 		Subd. 5.Duties. (a) The council's duties may include but are not limited to:
16.7 	(1) elevating the voice of older adults in developing the vision and action plan for an 
16.8 	age-friendly state;
16.9 	(2) engaging with the community, including older adults, caregivers, businesses, experts, 
16.10 	advocacy organizations, and other interested parties, to provide recommendations and update 
16.11 	interested parties on the council's recommendations;
16.12 	(3) identifying opportunities for and barriers to collaboration and coordination among 
16.13 	services and state agencies responsible for funding and administering programs and 
16.14 	public-private partnerships;
16.15 	(4) promoting equity and making progress toward equitable outcomes by examining 
16.16 	programs, policies, and practices to ensure they address disparities experienced by older 
16.17 	adults in greater Minnesota, older adults of color, and indigenous older adults;
16.18 	(5) catalyzing age-friendly work at the local level, engaging with and empowering older 
16.19 	adults, local constituents, elected officials, and other interested parties to create change in 
16.20 	every community;
16.21 	(6) establishing a statewide framework that allows for local flexibility to tap into the 
16.22 	potential presented by our aging communities and elevates aging across all of Minnesota;
16.23 	(7) reviewing, awarding, and monitoring grants under section 256.9747;
16.24 	(8) assessing and examining relevant programs, policies, practices, and services to make 
16.25 	budget and policy recommendations to establish age-friendly policies in law with appropriate 
16.26 	financial support to ensure Minnesota continues to lead on age-friendly initiatives; and
16.27 	(9) making budget and policy recommendations to the governor, commissioners, boards, 
16.28 	other state agencies, and the legislature to further the council's mission to ensure the state 
16.29 	is an age-friendly state.
16.30 	(b) The council may accept technical assistance and in-kind services from outside 
16.31 	organizations for purposes consistent with the council's role and authority.
17.1 		Subd. 6.Administration. The Minnesota Board on Aging and Department of Human 
17.2 	Services shall provide staffing and administrative support to the council.
17.3 		Subd. 7.Annual report. Beginning January 1, 2026, and every two years thereafter, 
17.4 	the council shall publish a public report on the council's activities, the uses and measurable 
17.5 	outcomes of the grant activities funded under section 256.9747, the council's 
17.6 	recommendations, proposed changes to statutes or rules, and other issues the council may 
17.7 	choose to report.

17.8 	Sec. 7. [256.9747] AGE-FRIENDLY MINNESOTA GRANTS.
17.9 		Subdivision 1.Age-friendly community grants. The commissioner of human services, 
17.10 	in collaboration with the Minnesota Board on Aging and the Age-Friendly Minnesota 
17.11 	Council, shall develop the age-friendly community grant program to help communities, 
17.12 	including cities, counties, other municipalities, Tribes, and collaborative efforts become 
17.13 	age-friendly communities, with an emphasis on structures, services, and community features 
17.14 	necessary to support older adult residents, including but not limited to:
17.15 	(1) coordination of health and social services;
17.16 	(2) transportation access;
17.17 	(3) safe, affordable places to live;
17.18 	(4) reducing social isolation and improving wellness;
17.19 	(5) combating ageism and racism against older adults;
17.20 	(6) accessible outdoor space and buildings;
17.21 	(7) communication and information technology access; and
17.22 	(8) opportunities to stay engaged and economically productive.
17.23 		Subd. 2.Age-friendly technical assistance grants. The commissioner of human services, 
17.24 	in collaboration with the Minnesota Board on Aging and the Age-Friendly Minnesota 
17.25 	Council, shall develop the age-friendly technical assistance grant program to support 
17.26 	communities and organizations who need assistance in applying for age-friendly community 
17.27 	grants and implementing various aspects of their grant-funded projects.

17.28 	Sec. 8. Minnesota Statutes 2024, section 256.9752, subdivision 2, is amended to read:
17.29 		Subd. 2.Authority. The Minnesota Board on Aging shall allocate to area agencies on 
17.30 	aging the state and federal funds which are received for the senior nutrition programs of 
18.1 	congregate dining and home-delivered meals in a manner consistent with federal 
18.2 	requirements.

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

18.4 	Sec. 9. Minnesota Statutes 2024, section 256.9752, subdivision 3, is amended to read:
18.5 		Subd. 3.Nutrition support services. (a) Funds allocated to an area agency on aging 
18.6 	for nutrition support services may be used for the following:
18.7 	(1) transportation of home-delivered meals and purchased food and medications to the 
18.8 	residence of a senior citizen;
18.9 	(2) expansion of home-delivered meals into unserved and underserved areas;
18.10 	(3) transportation to supermarkets or delivery of groceries from supermarkets to homes;
18.11 	(4) vouchers for food purchases at selected restaurants in isolated rural areas;
18.12 	(5) the Supplemental Nutrition Assistance Program (SNAP) outreach;
18.13 	(6) transportation of seniors to congregate dining sites;
18.14 	(7) nutrition screening assessments and counseling as needed by individuals with special 
18.15 	dietary needs, performed by a licensed dietitian or nutritionist; and
18.16 	(8) other appropriate services which support senior nutrition programs, including new 
18.17 	service delivery models; and
18.18 	(9) innovative models of providing healthy and nutritious meals to seniors, including 
18.19 	through partnerships with schools, restaurants, and other community partners.
18.20 	(b) An area agency on aging may transfer unused funding for nutrition support services 
18.21 	to fund congregate dining services and home-delivered meals, but state funds transferred 
18.22 	under this paragraph are not subject to federal requirements.

18.23 	Sec. 10. Minnesota Statutes 2024, section 256B.431, subdivision 30, is amended to read:
18.24 		Subd. 30.Bed layaway and delicensure. (a) For rate years beginning on or after July 
18.25 	1, 2000, a nursing facility reimbursed under this section which has placed beds on layaway 
18.26 	shall, for purposes of application of the downsizing incentive in subdivision 3a, paragraph 
18.27 	(c), and calculation of the rental per diem, have those beds given the same effect as if the 
18.28 	beds had been delicensed so long as the beds remain on layaway. At the time of a layaway, 
18.29 	a facility may change its single bed election for use in calculating capacity days under 
18.30 	Minnesota Rules, part 9549.0060, subpart 11. The property payment rate increase shall be 
19.1 	effective the first day of the month of January or July, whichever occurs first following the 
19.2 	date on which the layaway of the beds becomes effective under section 144A.071, subdivision 
19.3 	4b.
19.4 	(b) For rate years beginning on or after July 1, 2000, notwithstanding any provision to 
19.5 	the contrary under section 256B.434 or chapter 256R, a nursing facility reimbursed under 
19.6 	that section or chapter that has placed beds on layaway shall, for so long as the beds remain 
19.7 	on layaway, be allowed to:
19.8 	(1) aggregate the applicable investment per bed limits based on the number of beds 
19.9 	licensed immediately prior to entering the alternative payment system;
19.10 	(2) retain or change the facility's single bed election for use in calculating capacity days 
19.11 	under Minnesota Rules, part 9549.0060, subpart 11; and
19.12 	(3) establish capacity days based on the number of beds immediately prior to the layaway 
19.13 	and the number of beds after the layaway.
19.14 	The commissioner shall increase the facility's property payment rate by the incremental 
19.15 	increase in the rental per diem resulting from the recalculation of the facility's rental per 
19.16 	diem applying only the changes resulting from the layaway of beds and clauses (1), (2), and 
19.17 	(3). If a facility reimbursed under section 256B.434 or chapter 256R completes a moratorium 
19.18 	exception project after its base year, the base year property rate shall be the moratorium 
19.19 	project property rate. The base year rate shall be inflated by the factors in Minnesota Statutes 
19.20 	2024, section 256B.434, subdivision 4, paragraph (c). The property payment rate increase 
19.21 	shall be effective the first day of the month of January or July, whichever occurs first 
19.22 	following the date on which the layaway of the beds becomes effective.
19.23 	(c) If a nursing facility removes a bed from layaway status in accordance with section 
19.24 	144A.071, subdivision 4b, the commissioner shall establish capacity days based on the 
19.25 	number of licensed and certified beds in the facility not on layaway and shall reduce the 
19.26 	nursing facility's property payment rate in accordance with paragraph (b).
19.27 	(d) For the rate years beginning on or after July 1, 2000, notwithstanding any provision 
19.28 	to the contrary under section 256B.434 or chapter 256R, a nursing facility reimbursed under 
19.29 	that section or chapter that has delicensed beds after July 1, 2000, by giving notice of the 
19.30 	delicensure to the commissioner of health according to the notice requirements in section 
19.31 	144A.071, subdivision 4b, shall be allowed to:
19.32 	(1) aggregate the applicable investment per bed limits based on the number of beds 
19.33 	licensed immediately prior to entering the alternative payment system;
20.1 	(2) retain or change the facility's single bed election for use in calculating capacity days 
20.2 	under Minnesota Rules, part 9549.0060, subpart 11; and
20.3 	(3) establish capacity days based on the number of beds immediately prior to the 
20.4 	delicensure and the number of beds after the delicensure.
20.5 	The commissioner shall increase the facility's property payment rate by the incremental 
20.6 	increase in the rental per diem resulting from the recalculation of the facility's rental per 
20.7 	diem applying only the changes resulting from the delicensure of beds and clauses (1), (2), 
20.8 	and (3). If a facility reimbursed under section 256B.434 completes a moratorium exception 
20.9 	project after its base year, the base year property rate shall be the moratorium project property 
20.10 	rate. The base year rate shall be inflated by the factors in Minnesota Statutes 2024, section 
20.11 	256B.434, subdivision 4, paragraph (c). The property payment rate increase shall be effective 
20.12 	the first day of the month of January or July, whichever occurs first following the date on 
20.13 	which the delicensure of the beds becomes effective.
20.14 	(e) For nursing facilities reimbursed under this section, section 256B.434, or chapter 
20.15 	256R, any beds placed on layaway shall not be included in calculating facility occupancy 
20.16 	as it pertains to leave days defined in Minnesota Rules, part 9505.0415.
20.17 	(f) For nursing facilities reimbursed under this section, section 256B.434, or chapter 
20.18 	256R, the rental rate calculated after placing beds on layaway may not be less than the rental 
20.19 	rate prior to placing beds on layaway.
20.20 	(g) A nursing facility receiving a rate adjustment as a result of this section shall comply 
20.21 	with section 256R.06, subdivision 5.
20.22 	(h) A facility that does not utilize the space made available as a result of bed layaway 
20.23 	or delicensure under this subdivision to reduce the number of beds per room or provide 
20.24 	more common space for nursing facility uses or perform other activities related to the 
20.25 	operation of the nursing facility shall have its property rate increase calculated under this 
20.26 	subdivision reduced by the ratio of the square footage made available that is not used for 
20.27 	these purposes to the total square footage made available as a result of bed layaway or 
20.28 	delicensure.
20.29 	(i) The commissioner must not adjust the property payment rates under this subdivision 
20.30 	for beds placed in or removed from layaway on or after July 1, 2025.

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

21.1 	Sec. 11. Minnesota Statutes 2024, section 256B.434, subdivision 4, is amended to read:
21.2 		Subd. 4.Alternate rates for nursing facilities. Effective for the rate years beginning 
21.3 	on and after January 1, 2019 2026, a nursing facility's property payment rate for the second 
21.4 	and subsequent years of a facility's contract under this section are is the facility's previous 
21.5 	rate year's property payment rate plus an inflation adjustment. The index for the inflation 
21.6 	adjustment must be based on the change in the Consumer Price Index-All Items (United 
21.7 	States City average) (CPI-U) forecasted by the Reports and Forecasts Division of the 
21.8 	Department of Human Services, as forecasted in the fourth quarter of the calendar year 
21.9 	preceding the rate year. The inflation adjustment must be based on the 12-month period 
21.10 	from the midpoint of the previous rate year to the midpoint of the rate year for which the 
21.11 	rate is being determined.

21.12 	Sec. 12. Minnesota Statutes 2024, section 256R.02, subdivision 18, is amended to read:
21.13 		Subd. 18.Employer health insurance costs. "Employer health insurance costs" means:
21.14 	(1) premium expenses for group coverage;
21.15 	(2) actual expenses incurred for self-insured plans, including actual claims paid, stop-loss 
21.16 	premiums, and plan fees. Actual expenses incurred for self-insured plans does not include 
21.17 	allowances for future funding unless the plan meets the Medicare provider reimbursement 
21.18 	manual requirements for reporting on a premium basis when the Medicare provider 
21.19 	reimbursement manual regulations define the actual costs; and
21.20 	(3) employer contributions to employer-sponsored individual coverage health 
21.21 	reimbursement arrangements as provided by Code of Federal Regulations, title 45, section 
21.22 	146.123, employee health reimbursement accounts, and health savings accounts.

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

21.24 	Sec. 13. Minnesota Statutes 2024, section 256R.02, subdivision 19, is amended to read:
21.25 		Subd. 19.External fixed costs. "External fixed costs" means costs related to the nursing 
21.26 	home surcharge under section 256.9657, subdivision 1; licensure fees under section 144.122; 
21.27 	family advisory council fee under section 144A.33; scholarships under section 256R.37; 
21.28 	planned closure rate adjustments under section 256R.40; consolidation rate adjustments 
21.29 	under section 144A.071, subdivisions 4c, paragraph (a), clauses (5) and (6), and 4d; 
21.30 	single-bed room incentives under section 256R.41; property taxes, special assessments, and 
21.31 	payments in lieu of taxes; employer health insurance costs; quality improvement incentive 
21.32 	payment rate adjustments under section 256R.39; performance-based incentive payments 
22.1 	under section 256R.38; special dietary needs under section 256R.51; Public Employees 
22.2 	Retirement Association employer costs; and border city rate adjustments under section 
22.3 	256R.481 the items described in section 256R.25.

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

22.5 	Sec. 14. Minnesota Statutes 2024, section 256R.02, subdivision 22, is amended to read:
22.6 		Subd. 22.Fringe benefit costs. "Fringe benefit costs" means the costs for group life,;
22.7 	dental,; workers' compensation,; short- and long-term disability,; long-term care insurance,;
22.8 	accident insurance,; supplemental insurance,; legal assistance insurance,; profit sharing,;
22.9 	child care costs,; health insurance costs not covered under subdivision 18, including costs 
22.10 	associated with eligible part-time employee family members or retirees,; and pension and 
22.11 	retirement plan contributions, except for the Public Employees Retirement Association 
22.12 	costs.

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

22.14 	Sec. 15. Minnesota Statutes 2024, section 256R.02, is amended by adding a subdivision 
22.15 	to read:
22.16 		Subd. 36a.Patient driven payment model or PDPM. "Patient driven payment model" 
22.17 	or "PDPM" has the meaning given in section 144.0724, subdivision 2.

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

22.19 	Sec. 16. Minnesota Statutes 2024, section 256R.02, is amended by adding a subdivision 
22.20 	to read:
22.21 		Subd. 45a.Resource utilization group or RUG. "Resource utilization group" or "RUG" 
22.22 	has the meaning given in section 144.0724, subdivision 2.

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

22.24 	Sec. 17. Minnesota Statutes 2024, section 256R.10, subdivision 8, is amended to read:
22.25 		Subd. 8.Employer health insurance costs. (a) Employer health insurance costs are 
22.26 	allowable for (1) all nursing facility employees and (2) the spouse and dependents of those 
22.27 	nursing facility employees who are employed on average at least 30 hours per week.
22.28 	(b) Effective for the rate year beginning on January 1, 2026, the annual reimbursement 
22.29 	cap for health insurance costs is $14,703, as adjusted according to paragraph (c). The 
22.30 	allowable costs for health insurance must not exceed the reimbursement cap multiplied by 
23.1 	the annual average month end number of allowed enrolled nursing facility employees from 
23.2 	the applicable cost report period. For shared employees, the allowable number of enrolled 
23.3 	employees includes only the nursing facility percentage of any shared allowed enrolled 
23.4 	employees. The allowable number of enrolled employees must not include non-nursing 
23.5 	facility employees or individuals who elect COBRA continuation coverage.
23.6 	(c) Effective for rate years beginning on or after January 1, 2026, the commissioner shall 
23.7 	adjust the annual reimbursement cap for employer health insurance costs by the previous 
23.8 	year's cap plus an inflation adjustment. The commissioner must index for the inflation based 
23.9 	on the change in the Consumer Price Index (all items-urban) (CPI-U) forecasted by the 
23.10 	Reports and Forecast Division of the Department of Human Services in the fourth quarter 
23.11 	of the calendar year preceding the rate year. The commissioner must base the inflation 
23.12 	adjustment on the 12-month period from the second quarter of the previous cost report year 
23.13 	to the second quarter of the cost report year for which the cap is being applied.
23.14 	(b)(d) The commissioner must not treat employer contributions to employer-sponsored 
23.15 	individual coverage health reimbursement arrangements as allowable costs if the facility 
23.16 	does not provide the commissioner copies of the employer-sponsored individual coverage 
23.17 	health reimbursement arrangement plan documents and documentation of any health 
23.18 	insurance premiums and associated co-payments reimbursed under the arrangement. 
23.19 	Documentation of reimbursements must denote any reimbursements for health insurance 
23.20 	premiums or associated co-payments incurred by the spouses or dependents of nursing 
23.21 	facility employees who work on average less than 30 hours per week.

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

23.23 	Sec. 18. Minnesota Statutes 2024, section 256R.23, subdivision 5, is amended to read:
23.24 		Subd. 5.Determination of total care-related payment rate limits. The commissioner 
23.25 	must determine each facility's total care-related payment rate limit by:
23.26 	(1) multiplying the facility's quality score, as determined under section 256R.16, 
23.27 	subdivision 1, by 0.5625 2.0;
23.28 	(2) adding 89.375 to subtracting 40 from the amount determined in clause (1), and 
23.29 	dividing the total by 100; and
23.30 	(3) multiplying the amount determined in clause (2) by the median total care-related 
23.31 	cost per day.

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

24.1 	Sec. 19. Minnesota Statutes 2024, section 256R.23, subdivision 7, is amended to read:
24.2 		Subd. 7.Determination of direct care payment rates. A facility's direct care payment 
24.3 	rate equals the lesser of (1) the facility's direct care costs per standardized day, or (2) the 
24.4 	facility's direct care costs per standardized day divided by its cost to limit ratio, or (3) 104 
24.5 	percent of the previous year's direct care payment rate.

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

24.7 	Sec. 20. Minnesota Statutes 2024, section 256R.23, subdivision 8, is amended to read:
24.8 		Subd. 8.Determination of other care-related payment rates. A facility's other 
24.9 	care-related payment rate equals the lesser of (1) the facility's other care-related cost per 
24.10 	resident day, or (2) the facility's other care-related cost per resident day divided by its cost 
24.11 	to limit ratio, or (3) 104 percent of the previous year's other care-related payment rate.

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

24.13 	Sec. 21. Minnesota Statutes 2024, section 256R.24, subdivision 3, is amended to read:
24.14 		Subd. 3.Determination of the other operating payment rate. A facility's other 
24.15 	operating payment rate equals the lesser of 105 percent of the median other operating cost 
24.16 	per day or 104 percent of the previous year's other operating payment rate.

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

24.18 	Sec. 22. Minnesota Statutes 2024, section 256R.25, is amended to read:
24.19 	256R.25 EXTERNAL FIXED COSTS PAYMENT RATE.
24.20 		Subdivision 1.Determination of external fixed cost payment rate. (a) The payment 
24.21 	rate for external fixed costs is the sum of the amounts in paragraphs (b) to (p) subdivisions 
24.22 	2 to 14.
24.23 		Subd. 2.Provider surcharges. (b) For a facility licensed as a nursing home, the portion 
24.24 	related to the provider surcharge under section 256.9657 is equal to $8.86 per resident day. 
24.25 	For a facility licensed as both a nursing home and a boarding care home, the portion related 
24.26 	to the provider surcharge under section 256.9657 is equal to $8.86 per resident day multiplied 
24.27 	by the result of its number of nursing home beds divided by its total number of licensed 
24.28 	beds.
24.29 		Subd. 3.Licensure fees. (c) The portion related to the licensure fee under section 144.122, 
24.30 	paragraph (d), is the amount of the fee divided by the sum of the facility's resident days.
25.1 		Subd. 4.Advisory councils. (d) The portion related to development and education of 
25.2 	resident and family advisory councils under section 144A.33 is $5 per resident day divided 
25.3 	by 365.
25.4 		Subd. 5.Scholarships. (e) The portion related to scholarships is determined under section 
25.5 	256R.37.
25.6 	(f) The portion related to planned closure rate adjustments is as determined under section 
25.7 	256R.40, subdivision 5, and Minnesota Statutes 2010, section 256B.436.
25.8 		Subd. 6.Consolidation. (g) The portion related to consolidation rate adjustments shall
25.9 	be as determined under section 144A.071, subdivisions 4c, paragraph (a), clauses (5) and 
25.10 	(6), and 4dis the amount specified in section 256R.405.
25.11 	(h) The portion related to single-bed room incentives is as determined under section 
25.12 	256R.41.
25.13 		Subd. 7.Taxes. (i) The portions related to real estate taxes, special assessments, and 
25.14 	payments made in lieu of real estate taxes directly identified or allocated to the nursing 
25.15 	facility are the allowable amounts divided by the sum of the facility's resident days. Allowable 
25.16 	costs under this paragraph for payments made by a nonprofit nursing facility that are in lieu 
25.17 	of real estate taxes shall not exceed the amount which the nursing facility would have paid 
25.18 	to a city or township and county for fire, police, sanitation services, and road maintenance 
25.19 	costs had real estate taxes been levied on that property for those purposes.
25.20 		Subd. 8.Health insurance. (j) The portion related to employer health insurance costs 
25.21 	is the allowable costs divided by the sum of the facility's resident days.
25.22 		Subd. 9.Public employees retirement. (k) The portion related to the Public Employees 
25.23 	Retirement Association is the allowable costs divided by the sum of the facility's resident 
25.24 	days.
25.25 		Subd. 10.Quality improvement incentives. (l) The portion related to quality 
25.26 	improvement incentive payment rate adjustments is the amount determined under section 
25.27 	256R.39.
25.28 		Subd. 11.Performance-based incentives. (m) The portion related to performance-based 
25.29 	incentive payments is the amount determined under section 256R.38.
25.30 		Subd. 12.Special diets. (n) The portion related to special dietary needs is the amount 
25.31 	determined under section 256R.51.
26.1 	(o) The portion related to the rate adjustments for border city facilities is the amount 
26.2 	determined under section 256R.481.
26.3 		Subd. 13.Critical access facilities. (p) The portion related to the rate adjustment for 
26.4 	critical access nursing facilities is the amount determined under section 256R.47.
26.5 		Subd. 14.Workforce standards. The portion related to implementation of the rules 
26.6 	implemented by the Nursing Home Workforce Standards Board is the amount determined 
26.7 	under section 256R.532.

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

26.9 	Sec. 23. Minnesota Statutes 2024, section 256R.26, subdivision 9, is amended to read:
26.10 		Subd. 9.Transition period. (a) A facility's property payment rate is the property rate 
26.11 	established for the facility under sections 256B.431 and 256B.434 until the facility's property 
26.12 	rate is transitioned upon completion of any project authorized under section 144A.071, 
26.13 	subdivision 3 or 4d; or 144A.073, subdivision 3, to the fair rental value property rate 
26.14 	calculated under this chapter.
26.15 	(b) Effective the first day of the first month of the calendar quarter after the completion 
26.16 	of the project described in paragraph (a), the commissioner shall transition a facility to the 
26.17 	property payment rate calculated under this chapter. The initial rate year ends on December 
26.18 	31 and may be less than a full 12-month period. The commissioner shall schedule an appraisal 
26.19 	within 90 days of the commissioner receiving notification from the facility that the project 
26.20 	is completed. The commissioner shall apply the property payment rate determined after the 
26.21 	appraisal retroactively to the first day of the first month of the calendar quarter after the 
26.22 	completion of the project.
26.23 	(c) Upon a facility's transition to the fair rental value property rates calculated under this 
26.24 	chapter, the facility's total property payment rate under subdivision 8 shall be the only 
26.25 	payment for costs related to capital assets, including depreciation, interest and lease expenses 
26.26 	for all depreciable assets, including movable equipment, land improvements, and land. 
26.27 	Facilities with property payment rates established under subdivisions 1 to 8 are not eligible 
26.28 	for planned closure rate adjustments under Minnesota Statutes 2024, section 256R.40; 
26.29 	consolidation rate adjustments under section 144A.071, subdivisions 4c, paragraph (a), 
26.30 	clauses (5) (1) and (6) (2), and 4d; single-bed room incentives under Minnesota Statutes 
26.31 	2024, section 256R.41; and the property rate inflation adjustment under Minnesota Statutes 
26.32 	2024, section 256B.434, subdivision 4. The commissioner shall remove any of these 
27.1 	incentives from the facility's existing rate upon the facility transitioning to the fair rental 
27.2 	value property rates calculated under this chapter.

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

27.4 	Sec. 24. Minnesota Statutes 2024, section 256R.27, subdivision 2, is amended to read:
27.5 		Subd. 2.Determination of interim payment rates. (a) The nursing facility shall submit 
27.6 	an interim cost report in a format similar to the Minnesota Statistical and Cost Report and 
27.7 	other supporting information as required by this chapter for the reporting year in which the 
27.8 	nursing facility plans to begin operation at least 60 days before the first day a resident is 
27.9 	admitted to the newly constructed nursing facility bed. The interim cost report must include 
27.10 	the nursing facility's anticipated interim costs and anticipated interim resident days for each 
27.11 	resident class in the interim cost report. The anticipated interim resident days for each 
27.12 	resident class is multiplied by the weight for that resident class to determine the anticipated 
27.13 	interim standardized days as defined in section 256R.02, subdivision 50, and resident days 
27.14 	as defined in section 256R.02, subdivision 45, for the reporting period.
27.15 	(b) The interim payment rates are determined according to sections 256R.21 to 256R.25, 
27.16 	except that:
27.17 	(1) the anticipated interim costs and anticipated interim resident days reported on the 
27.18 	interim cost report and the anticipated interim standardized days as defined by section 
27.19 	256R.02, subdivision 50, must be used for the interim;
27.20 	(2) the commissioner shall use anticipated interim costs and anticipated interim 
27.21 	standardized days in determining the allowable historical direct care cost per standardized 
27.22 	day as determined under section 256R.23, subdivision 2;
27.23 	(3) the commissioner shall use anticipated interim costs and anticipated interim resident 
27.24 	days in determining the allowable historical other care-related cost per resident day as 
27.25 	determined under section 256R.23, subdivision 3;
27.26 	(4) the commissioner shall use anticipated interim costs and anticipated interim resident 
27.27 	days to determine the allowable historical external fixed costs per day under section 256R.25, 
27.28 	paragraphs (b) to (k) subdivisions 2 to 9;
27.29 	(5) the total care-related payment rate limits established in section 256R.23, subdivision 
27.30 	5, and in effect at the beginning of the interim period must be increased by ten percent; and
27.31 	(6) the other operating payment rate as determined under section 256R.24 in effect for 
27.32 	the rate year must be used for the other operating cost per day.

28.1 	Sec. 25. Minnesota Statutes 2024, section 256R.27, subdivision 3, is amended to read:
28.2 		Subd. 3.Determination of settle-up payment rates. (a) When the interim payment 
28.3 	rates begin between May 1 and September 30, the nursing facility shall file settle-up cost 
28.4 	reports for the period from the beginning of the interim payment rates through September 
28.5 	30 of the following year.
28.6 	(b) When the interim payment rates begin between October 1 and April 30, the nursing 
28.7 	facility shall file settle-up cost reports for the period from the beginning of the interim 
28.8 	payment rates to the first September 30 following the beginning of the interim payment 
28.9 	rates.
28.10 	(c) The settle-up payment rates are determined according to sections 256R.21 to 256R.25, 
28.11 	except that:
28.12 	(1) the allowable costs and resident days reported on the settle-up cost report and the 
28.13 	standardized days as defined by section 256R.02, subdivision 50, must be used for the 
28.14 	interim and settle-up period;
28.15 	(2) the commissioner shall use the allowable costs and standardized days in clause (1) 
28.16 	to determine the allowable historical direct care cost per standardized day as determined 
28.17 	under section 256R.23, subdivision 2;
28.18 	(3) the commissioner shall use the allowable costs and the allowable resident days to 
28.19 	determine both the allowable historical other care-related cost per resident day as determined 
28.20 	under section 256R.23, subdivision 3;
28.21 	(4) the commissioner shall use the allowable costs and the allowable resident days to 
28.22 	determine the allowable historical external fixed costs per day under section 256R.25, 
28.23 	paragraphs (b) to (k) subdivisions 2 to 9;
28.24 	(5) the total care-related payment limits established in section 256R.23, subdivision 5, 
28.25 	are the limits for the settle-up reporting periods. If the interim period includes more than 
28.26 	one July 1 date, the commissioner shall use the total care-related payment rate limit 
28.27 	established in section 256R.23, subdivision 5, increased by ten percent for the second July 
28.28 	1 date; and
28.29 	(6) the other operating payment rate as determined under section 256R.24 in effect for 
28.30 	the rate year must be used for the other operating cost per day.

29.1 	Sec. 26. [256R.405] CONSOLIDATION RATES.
29.2 		Subdivision 1.Consolidation rates; generally. The external fixed costs payment rate 
29.3 	for nursing facilities that have completed a state approved consolidation project must include 
29.4 	a consolidation rate adjustment. A facility's consolidation rate adjustment expires upon 
29.5 	transition to a fair rental value property payment rate under section 256R.26, subdivision 
29.6 	9. The commissioner must inform the revisor of statutes when a facility's consolidation rate 
29.7 	adjustment specified under this section expires. This subdivision expires upon the expiration 
29.8 	of all other subdivisions of this section.
29.9 		Subd. 2.Owatonna. The consolidation rate for the nursing facility located at 2255 30th 
29.10 	Street Northwest in Owatonna is $33.88.
29.11 		Subd. 3.Red Wing. The consolidation rate for the nursing facility located at 213 Pioneer 
29.12 	Road in Red Wing is $73.69.
29.13 		Subd. 4.White Bear Lake. The consolidation rate for the nursing facility located at 
29.14 	1891 Florence Street in White Bear Lake is $25.56.
29.15 		Subd. 5.St. Paul. The consolidation rate for the nursing facility located at 200 Earl 
29.16 	Street in St. Paul is $68.01.
29.17 		Subd. 6.Cambridge. The consolidation rate for the nursing facility located at 135 Fern 
29.18 	Street North in Cambridge is $24.30.
29.19 		Subd. 7.Maple Plain. The consolidation rate for the nursing facility located at 4848 
29.20 	Gateway Boulevard in Maple Plain is $38.76.
29.21 		Subd. 8.Maplewood. The consolidation rate for the nursing facility located at 1438 
29.22 	County Road C East in Maplewood is $55.63.
29.23 		Subd. 9.Apple Valley. The consolidation rate for the nursing facility located at 14650 
29.24 	Garrett Avenue in Apple Valley is $26.99.

29.25 	Sec. 27. Minnesota Statutes 2024, section 256R.43, is amended to read:
29.26 	256R.43 BED HOLDS.
29.27 	The commissioner shall limit payment for leave days in a nursing facility to 30 percent 
29.28 	of that nursing facility's total payment rate for the involved resident, and shall allow this 
29.29 	payment only when the occupancy of the nursing facility, inclusive of bed hold days, is 
29.30 	equal to or greater than 96 percent, notwithstanding Minnesota Rules, part 9505.0415. For 
29.31 	the purpose of establishing leave day payments, the commissioner shall determine occupancy 
30.1 	based on the number of licensed and certified beds in the facility that are not in layaway 
30.2 	status.

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

30.4 	Sec. 28. [256R.531] PATIENT DRIVEN PAYMENT MODEL PHASE-IN.
30.5 		Subdivision 1.PDPM phase-in. Effective October 1, 2025, through December 31, 2028, 
30.6 	for each facility, the commissioner shall determine an adjustment to its total payment rate 
30.7 	as determined under sections 256R.21 and 256R.27 to phase in the transition from the 
30.8 	RUG-IV case mix classification system to the patient driven payment model (PDPM) case 
30.9 	mix classification system.
30.10 		Subd. 1a.Definitions. "Medical assistance facility average case mix index" means the 
30.11 	facility average case mix index for the subset of a facility's residents that includes only 
30.12 	medical assistance recipients.
30.13 		Subd. 2.PDPM phase-in rate adjustment. A facility's PDPM phase-in rate adjustment 
30.14 	to its total payment rate is equal to:
30.15 	(1) the blended medical assistance case mix adjusted direct care payment rate determined 
30.16 	in subdivision 6; minus
30.17 	(2) the PDPM medical assistance case mix adjusted direct care payment rate determined 
30.18 	in section 256R.23, subdivision 7.
30.19 		Subd. 3.RUG-IV standardized days and RUG-IV facility case mix index. (a) Effective 
30.20 	October 1, 2025, through December 31, 2027, for each facility the commissioner must 
30.21 	determine the RUG-IV standardized days and RUG-IV medical assistance facility average 
30.22 	case mix index.
30.23 	(b) For the rate year beginning January 1, 2028, only:
30.24 	(1) for each facility, the commissioner must determine both the RUG-IV facility average 
30.25 	case mix index and the RUG-IV medical assistance facility average case mix index using 
30.26 	resident days by the case mix classification on the facility's September 30, 2025, Minnesota 
30.27 	Statistical and Cost Report; and
30.28 	(2) for each facility, the commissioner must determine the RUG-IV standardized days 
30.29 	by multiplying the facility's resident days on the facility's September 30, 2026, Minnesota 
30.30 	Statistical and Cost Report by the facility's RUG-IV facility average case mix index 
30.31 	determined under clause (1).
31.1 		Subd. 4.RUG-IV medical assistance case mix adjusted direct care payment rate. The 
31.2 	commissioner must determine a facility's RUG-IV medical assistance case mix adjusted 
31.3 	direct care payment rate as the product of:
31.4 	(1) the facility's RUG-IV direct care payment rate determined in section 256R.23, 
31.5 	subdivision 7, using the RUG-IV standardized days determined in subdivision 3; and
31.6 	(2) the corresponding RUG-IV medical assistance facility average case mix index 
31.7 	determined in subdivision 3.
31.8 		Subd. 5.PDPM medical assistance case mix adjusted direct care payment rate. The 
31.9 	commissioner must determine a facility's PDPM case mix adjusted direct care payment rate 
31.10 	as the product of:
31.11 	(1) the facility's direct care payment rate determined in section 256R.23, subdivision 7; 
31.12 	and
31.13 	(2) the corresponding medical assistance facility average case mix index.
31.14 		Subd. 6.Blended medical assistance case mix adjusted direct care payment rate. The 
31.15 	commissioner must determine a facility's blended medical assistance case mix adjusted 
31.16 	direct care payment rate as the sum of:
31.17 	(1) the RUG-IV medical assistance case mix adjusted direct care payment rate determined 
31.18 	in subdivision 4 multiplied by the following percentages:
31.19 	(i) after September 30, 2025, through  December 31, 2026, 75 percent;
31.20 	(ii) after December 31, 2026, through December 31, 2027, 50 percent; and
31.21 	(iii) after December 31, 2027, through December 31, 2028, 25 percent; and
31.22 	(2) the PDPM medical assistance case mix adjusted direct care payment rate determined 
31.23 	in subdivision 5 multiplied by the following percentages:
31.24 	(i) after September 30, 2025, through December 31, 2026, 25 percent;
31.25 	(ii) after December 31, 2026, through December 31, 2027, 50 percent; and
31.26 	(iii) after December 31, 2027, through December 31, 2028, 75 percent.
31.27 		Subd. 7.Expiration. This section expires January 1, 2029.

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

32.1 	Sec. 29. [256R.532] NURSING FACILITY RATE ADD-ON FOR WORKFORCE 
32.2 	STANDARDS.
32.3 	(a) Effective for rate years beginning on and after January 1, 2028, or upon federal 
32.4 	approval, whichever is later, the commissioner shall annually provide a rate add-on amount 
32.5 	for nursing facilities reimbursed under this chapter for the initial standards for wages for 
32.6 	nursing home workers adopted by the Nursing Home Workforce Standards Board in 
32.7 	Minnesota Rules, parts 5200.2060 to 5200.2090, pursuant to section 181.213, subdivision 
32.8 	2, paragraph (c). The add-on amount is equal to:
32.9 	(1) $3.93 per resident day, effective January 1, 2028, through December 31, 2028; and
32.10 	(2) $8.55 per resident day, effective January 1, 2029.
32.11 	(b) Effective upon federal approval, the commissioner must determine the add-on amount 
32.12 	for subsequent rate years in consultation with the commissioner of labor and industry.

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

32.14 	Sec. 30. Laws 2021, chapter 30, article 12, section 5, as amended by Laws 2021, First 
32.15 	Special Session chapter 7, article 17, section 2, and Laws 2023, chapter 61, article 2, section 
32.16 	35, is amended to read:
32.17 	Sec. 5. GOVERNOR'S COUNCIL ON AN AGE-FRIENDLY MINNESOTA.
 32.18 	The Governor's Council on an Age-Friendly Minnesota, established in Executive Order 
32.19 	19-38, shall: (1) work to advance age-friendly policies; and (2) coordinate state, local, and 
32.20 	private partners' collaborative work on emergency preparedness, with a focus on older 
32.21 	adults, communities, and persons in zip codes most impacted by the COVID-19 pandemic. 
32.22 	The Governor's Council on an Age-Friendly Minnesota is extended and expires June 30, 
32.23 	2027 2025.

32.24 	Sec. 31. AGE-FRIENDLY MINNESOTA COUNCIL; CONTINUATION OF 
32.25 	APPOINTMENTS AND DESIGNATION OF INITIAL TERMS.
 32.26 		Subdivision 1.Continuation of appointments. Each member of the Governor's Council 
32.27 	on an Age-Friendly Minnesota, established in Executive Order 19-38, serving on June 30, 
32.28 	2025, shall be deemed appointed to the Age-Friendly Minnesota Council by the applicable 
32.29 	appointing authority under Minnesota Statutes, section 256.9746, effective July 1, 2025.
32.30 		Subd. 2.First meeting. The individual who was serving as chairperson of the Governor's 
32.31 	Council on an Age-Friendly Minnesota, established in Executive Order 19-38, as of June 
33.1 	30, 2025, must convene the first meeting of the Age-Friendly Minnesota Council no later 
33.2 	than July 9, 2025. The former chairperson of the Governor's Council on an Age-Friendly 
33.3 	Minnesota shall preside over the first meeting until the Age-Friendly Minnesota Council 
33.4 	elects a chairperson.
33.5 		Subd. 3.Designation of initial terms. The governor must notify the secretary of state 
33.6 	which initial public members of the Age-Friendly Minnesota Council will have terms 
33.7 	coterminous with that of the governor or request that the secretary of state randomly 
33.8 	determine which initial public members will have terms coterminous with the governor's 
33.9 	term.

33.10 	Sec. 32. DIRECTION TO THE COMMISSIONER; IMPACT STUDY OF REPEAL 
33.11 	OF DISPROPORTIONATE SHARE PAYMENTS.
 33.12 	(a) The commissioner of human services must conduct a study of the impact of the repeal 
33.13 	of Minnesota Statutes, section 256S.205, on those facilities that received a rate floor payment 
33.14 	in rate year 2025. For each facility that received a rate floor payment in rate year 2025, the 
33.15 	commissioner must determine:
33.16 	(1)  how many facilities remain operational on September 1, 2026;
33.17 	(2)  the total number of residents of the facility on September 1, 2026;
33.18 	(3) the proportion of residents of the facility who are customized living residents on 
33.19 	September 1, 2026;
33.20 	(4) the proportion of residents who are elderly waiver participants on September 1, 2026; 
33.21 	and
33.22 	(5) the difference by facility between the results under clauses (1) to (4) and the same 
33.23 	or similar information submitted by the facility on its rate year 2025 application.
33.24 	(b) The commissioner must solicit from each provider a summary of its financial position 
33.25 	as of September 1, 2026, as compared to its financial position on September 1, 2025, and 
33.26 	a statement of the facility's change in operational margin between September 1, 2025, and 
33.27 	September 1, 2026. The controlling individual of a facility that submits a financial summary 
33.28 	and statement of the facility's change in operational margin must attest to the accuracy of 
33.29 	the financial summary and statement.
33.30 	(c) By January 1, 2027, the commissioner must submit to the chairs and ranking minority 
33.31 	members of the legislative committees with jurisdiction over human services a report 
34.1 	summarizing the data on the impact of the repeal of Minnesota Statutes, section 256S.205, 
34.2 	on those facilities that received a rate floor payment in rate year 2025.
34.3 	(d) The definitions in Minnesota Statutes 2024, section 256S.205, apply to this section.

34.4 	Sec. 33. REPEALER.
 34.5 	(a) Minnesota Statutes 2024, sections 144A.071, subdivision 4c; 256R.02, subdivision 
34.6 	38; 256R.40; 256R.41; and 256R.481, are repealed.
34.7 	(b) Minnesota Statutes 2024, sections 256R.12, subdivision 10; and 256R.36, are repealed.
34.8 	(c) Minnesota Statutes 2024, section 256R.23, subdivision 6, is repealed.

34.9 	EFFECTIVE DATE. Paragraph (a) is effective January 1, 2026. Paragraph (b) is 
34.10 	effective the day following final enactment. Paragraph (c) is effective October 1, 2025.

34.11 	ARTICLE 2
34.12 	DISABILITY SERVICES

34.13 	Section 1. Minnesota Statutes 2024, section 144A.351, subdivision 1, is amended to read:
34.14 		Subdivision 1.Report requirements. (a) The commissioners of health and human 
34.15 	services, with the cooperation of counties and in consultation with stakeholders, including 
34.16 	persons who need or are using long-term care services and supports, lead agencies, regional 
34.17 	entities, senior, disability, and mental health organization representatives, service providers, 
34.18 	and community members shall compile data regarding the status of the full range of long-term 
34.19 	care services and supports for the elderly and children and adults with disabilities and mental 
34.20 	illnesses in Minnesota. The compiled data shall include:
34.21 	(1) demographics and need for long-term care services and supports in Minnesota;
34.22 	(2) summary of county and regional reports on long-term care gaps, surpluses, imbalances, 
34.23 	and corrective action plans;
34.24 	(3) status of long-term care services and related mental health services, housing options, 
34.25 	and supports by county and region including:
34.26 	(i) changes in availability of the range of long-term care services and housing options;
34.27 	(ii) access problems, including access to the least restrictive and most integrated services 
34.28 	and settings, regarding long-term care services; and
34.29 	(iii) comparative measures of long-term care services availability, including serving 
34.30 	people in their home areas near family, and changes over time; and
35.1 	(4) recommendations regarding goals for the future of long-term care services and 
35.2 	supports, policy and fiscal changes, and resource development and transition needs.; and
35.3 	(5) the following information on the availability of integrated community supports, 
35.4 	updated within 30 days of the end of each of four three-month reporting periods, which 
35.5 	begin on January 1 of each year:
35.6 	(i) the average number of integrated community supports beds occupied, per month, for 
35.7 	the preceding reporting period;
35.8 	(ii) the average number of integrated community supports beds available, per month, 
35.9 	for the preceding reporting period;
35.10 	(iii) the number of integrated community supports setting applications being reviewed 
35.11 	by the commissioner of human services as of the final day of the reporting period; and
35.12 	(vi) the average time of review for integrated community supports setting applications 
35.13 	submitted during the preceding quarter.
35.14 	(b) The commissioners of health and human services shall make the compiled data 
35.15 	available on at least one of the department's websites.

35.16 	Sec. 2. Minnesota Statutes 2024, section 179A.54, is amended by adding a subdivision to 
35.17 	read:
35.18 		Subd. 12.Minnesota Caregiver Retirement Fund Trust. (a) The state and an exclusive 
35.19 	representative certified pursuant to this section may establish a joint labor and management 
35.20 	trust, referred to as the Minnesota Caregiver  Retirement Fund Trust, for the exclusive 
35.21 	purpose of creating, implementing, and administering a retirement program for individual 
35.22 	providers of direct support services who are represented by the exclusive representative.
35.23 	(b) The state must make financial contributions to the Minnesota Caregiver  Retirement 
35.24 	Fund Trust pursuant to a collective bargaining agreement negotiated under this section. The 
35.25 	financial contributions by the state must be held in trust for the purpose of paying, from 
35.26 	principal, income, or both, the costs associated with creating, implementing, and 
35.27 	administering a defined contribution or other individual account retirement program for 
35.28 	individual providers of direct support services working under a collective bargaining 
35.29 	agreement and providing services through a covered program under section 256B.0711. A 
35.30 	board of trustees composed of an equal number of trustees appointed by the governor and 
35.31 	trustees appointed by the exclusive representative under this section must administer, manage, 
35.32 	and otherwise jointly control the Minnesota Caregiver Retirement Fund Trust. The trust 
35.33 	must not be an agent of either the state or the exclusive representative.
36.1 	(c) A third-party administrator, financial management institution, other appropriate 
36.2 	entity, or any combination thereof may provide trust administrative, management, legal, 
36.3 	and financial services to the board of trustees as designated by the board of trustees from 
36.4 	time to time. The services must be paid from the money held in trust and created by the 
36.5 	state's financial contributions to the Minnesota Caregiver Retirement Fund Trust.
36.6 	(d) The state is authorized to purchase liability insurance for members of the board of 
36.7 	trustees appointed by the governor.
36.8 	(e) Financial contributions to or participation in the management or administration of 
36.9 	the Minnesota Caregiver Retirement Fund Trust must not be considered an unfair labor 
36.10 	practice under section 179A.13, or a violation of Minnesota law.
36.11 	(f) Nothing in this section shall be construed to authorize the creation of a defined benefit 
36.12 	retirement plan or program.

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

36.14 	Sec. 3. Minnesota Statutes 2024, section 245A.042, is amended by adding a subdivision 
36.15 	to read:
36.16 		Subd. 5.Compliance education required. The commissioner must make licensing 
36.17 	compliance education available to all license holders operating programs licensed under 
36.18 	both this chapter and chapter 245D. The licensing compliance education must include clear 
36.19 	and accessible explanations of achieving and maintaining compliance with the relevant 
36.20 	licensing requirements under this chapter and chapter 245D.

36.21 	Sec. 4. Minnesota Statutes 2024, section 245A.06, subdivision 1a, is amended to read:
36.22 		Subd. 1a.Correction orders and conditional licenses for programs licensed as home 
36.23 	and community-based services. (a) For programs licensed under both this chapter and 
36.24 	chapter 245D, if the license holder operates more than one service site under a single license 
36.25 	governed by chapter 245D, the correction order or order of conditional license issued under 
36.26 	this section shall be specific to the service site or sites at which the violations of applicable 
36.27 	law or rules occurred. The order shall not apply to other service sites governed by chapter 
36.28 	245D and operated by the same license holder unless the commissioner has included in the 
36.29 	order the articulable basis for applying the order to another service site.
36.30 	(b) If the commissioner has issued more than one license to the license holder under this 
36.31 	chapter, the conditions imposed order issued under this section shall be specific to the license 
36.32 	for the program at which the violations of applicable law or rules occurred and shall not 
37.1 	apply to other licenses held by the same license holder if those programs are being operated 
37.2 	in substantial compliance with applicable law and rules.
37.3 	(c) Prior to issuing an order of conditional license under this section to a license holder 
37.4 	operating a program licensed under both this chapter and chapter 245D, the commissioner 
37.5 	must inform the license holder that the next audit or investigation may lead to an order of 
37.6 	conditional license if the provider fails to correct the violations specified in a prior correction 
37.7 	order or has any new violations. Nothing in this paragraph limits the commissioner's authority 
37.8 	to take immediate action under section 245A.07 to prevent or correct actions by the license 
37.9 	holder that imminently endanger the health, safety, or rights of the persons served by the 
37.10 	program.
37.11 	(d) The commissioner may reduce the length of time of a conditional license for a license 
37.12 	holder operating a program licensed under both this chapter and chapter 245D if the license 
37.13 	holder demonstrates compliance or progress toward compliance before the conditional 
37.14 	license period expires.
37.15 	(e) By January 1, 2026, and annually thereafter, the commissioner must provide a report 
37.16 	to the chairs and ranking minority members of the legislative committees with jurisdiction 
37.17 	over chapter 245D licensing on the number of correction orders and orders of conditional 
37.18 	license issued to license holders who operate programs licensed under both this chapter and 
37.19 	chapter 245D. The report must include aggregated data on the zip codes of locations, number 
37.20 	of employees, license effective dates for any license holders subject to correction orders 
37.21 	and orders of conditional license, and the commissioner's efforts to offer collaborative safety 
37.22 	process improvements to license holders under section 245A.042 and this subdivision.

37.23 	Sec. 5. Minnesota Statutes 2024, section 245A.06, subdivision 2, is amended to read:
37.24 		Subd. 2.Reconsideration of correction orders. (a) If the applicant or license holder 
37.25 	believes that the contents of the commissioner's correction order are in error, the applicant 
37.26 	or license holder may ask the Department of Human Services to reconsider the parts of the 
37.27 	correction order that are alleged to be in error. The request for reconsideration must be made 
37.28 	in writing and must be postmarked and sent to the commissioner within 20 calendar days 
37.29 	after receipt of the correction order by the applicant or license holder or submitted in the 
37.30 	provider licensing and reporting hub within 20 calendar days from the date the commissioner 
37.31 	issued the order through the hub, and:
37.32 	(1) specify the parts of the correction order that are alleged to be in error;
37.33 	(2) explain why they are in error; and
38.1 	(3) include documentation to support the allegation of error.
38.2 	Upon implementation of the provider licensing and reporting hub, the provider must use 
38.3 	the hub to request reconsideration. A request for reconsideration does not stay any provisions 
38.4 	or requirements of the correction order. The commissioner's disposition of a request for 
38.5 	reconsideration is final and not subject to appeal under chapter 14.
38.6 	(b) This paragraph applies only to licensed family child care providers. A licensed family 
38.7 	child care provider who requests reconsideration of a correction order under paragraph (a) 
38.8 	may also request, on a form and in the manner prescribed by the commissioner, that the 
38.9 	commissioner expedite the review if:
38.10 	(1) the provider is challenging a violation and provides a description of how complying 
38.11 	with the corrective action for that violation would require the substantial expenditure of 
38.12 	funds or a significant change to their program; and
38.13 	(2) describes what actions the provider will take in lieu of the corrective action ordered 
38.14 	to ensure the health and safety of children in care pending the commissioner's review of the 
38.15 	correction order.
38.16 	(b) Notwithstanding paragraph (a), when a request for reconsideration is denied, the 
38.17 	commissioner must offer the option of mediation for a license holder operating a program 
38.18 	licensed under both this chapter and chapter 245D, if a license holder further disputes the 
38.19 	commissioner's correction order. The costs of the mediation option under this paragraph 
38.20 	must be paid by the license holder.

38.21 	Sec. 6. [245A.142] EARLY INTENSIVE DEVELOPMENTAL AND BEHAVIORAL 
38.22 	INTERVENTION PROVISIONAL LICENSURE.
38.23 		Subdivision 1.Regulatory powers. The commissioner shall regulate early intensive 
38.24 	developmental and behavioral intervention (EIDBI) agencies pursuant to this section.
38.25 		Subd. 2.Provisional license. (a) Beginning on January 1, 2026, the commissioner shall 
38.26 	begin issuing provisional licenses to enrolled EIDBI agencies while permanent licensing 
38.27 	standards are developed. Beginning January 1, 2026, no new EIDBI agencies shall be 
38.28 	enrolled to provide EIDBI services. EIDBI agencies enrolled prior to January 1, 2026, have 
38.29 	until June 1, 2026, to submit an application for provisional licensure on the forms and in 
38.30 	the manner prescribed by the commissioner.
38.31 	(b) Beginning June 2, 2026, an EIDBI agency must not operate if it has not submitted 
38.32 	an application for provisional licensure under this section. The commissioner shall disenroll 
39.1 	an EIDBI agency from providing EIDBI services if the EIDBI agency fails to submit an 
39.2 	application for provisional licensure by June 1, 2026.
39.3 	(c) A provisional license is effective until comprehensive EIDBI agency licensure 
39.4 	standards are in effect unless the provisional license is revoked.
39.5 		Subd. 3.Provisional license regulatory functions. The commissioner may:
39.6 	(1) enter the physical premises of the program without advance notice in accordance 
39.7 	with section 245A.04, subdivision 5;
39.8 	(2) investigate reports of maltreatment;
39.9 	(3) investigate complaints against EIDBI agencies limited to the provisions of this 
39.10 	section;
39.11 	(4) take action on a license pursuant to sections 245A.06 and 245A.07;
39.12 	(5) deny an application for provisional licensure pursuant to section 245A.05; and
39.13 	(6) take other action reasonably required to accomplish the purposes of this section.
39.14 		Subd. 4.Provisional license requirements. A provisional license holder must:
39.15 	(1) identify all controlling individuals, as defined in section 245A.02, subdivision 5a, 
39.16 	for the agency;
39.17 	(2) provide documented disclosures surrounding the use of billing agencies or other 
39.18 	consultants, available to the department upon request;
39.19 	(3) establish provider policies and procedures related to staff training, staff qualifications, 
39.20 	quality assurance, and service activities;
39.21 	(4) document contracts with independent contractors for qualified supervising 
39.22 	professionals, including the number of hours contracted and responsibilities, available to 
39.23 	the department upon request; and
39.24 	(5) comply with section 256B.0949, subdivisions 2, 3a, 6, 7, 14, 15, 16, and 16a, and 
39.25 	exceptions to qualifications, standards, and requirements granted by the commissioner under 
39.26 	section 256B.0949, subdivision 17.
39.27 		Subd. 5.Reporting of maltreatment. EIDBI agencies must comply with the requirements 
39.28 	of reporting of maltreatment of vulnerable adults and minors under sections 245A.65, 
39.29 	245A.66, and 626.557, and chapter 260E.
39.30 		Subd. 6.Background studies. An EIDBI agency must initiate a background study 
39.31 	through the commissioner's NETStudy 2.0 system as provided under section 245C.03.
40.1 		Subd. 7.Reconsideration requests and appeals. An applicant or provisional license 
40.2 	holder has reconsideration and appeal rights under sections 245A.05, 245A.06, and 245A.07.
40.3 		Subd. 8.Disenrollment. The commissioner shall disenroll an EIDBI agency from 
40.4 	providing EIDBI services if the EIDBI agency's application has been denied under 
40.5 	subdivision 2 or the agency's provisional license has been suspended or revoked and, if the 
40.6 	EIDBI agency appealed, the commissioner has issued the final order on the appeal.
40.7 		Subd. 9.Transition to nonprovisional EIDBI license; future licensure standards. (a) 
40.8 	The commissioner must develop a process and transition plan for comprehensive EIDBI 
40.9 	agency licensure by July 1, 2027.
40.10 	(b) By January 1, 2028, the commissioner shall establish standards for nonprovisional 
40.11 	EIDBI agency licensure and submit proposed legislation to the chairs and ranking minority 
40.12 	members of the legislative committees with jurisdiction over human services licensing.

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

40.14 	Sec. 7. Minnesota Statutes 2024, section 245C.16, subdivision 1, is amended to read:
40.15 		Subdivision 1.Determining immediate risk of harm. (a) If the commissioner determines 
40.16 	that the individual studied has a disqualifying characteristic, the commissioner shall review 
40.17 	the information immediately available and make a determination as to the subject's immediate 
40.18 	risk of harm to persons served by the program where the individual studied will have direct 
40.19 	contact with, or access to, people receiving services.
40.20 	(b) The commissioner shall consider all relevant information available, including the 
40.21 	following factors in determining the immediate risk of harm:
40.22 	(1) the recency of the disqualifying characteristic;
40.23 	(2) the recency of discharge from probation for the crimes;
40.24 	(3) the number of disqualifying characteristics;
40.25 	(4) the intrusiveness or violence of the disqualifying characteristic;
40.26 	(5) the vulnerability of the victim involved in the disqualifying characteristic;
40.27 	(6) the similarity of the victim to the persons served by the program where the individual 
40.28 	studied will have direct contact;
40.29 	(7) whether the individual has a disqualification from a previous background study that 
40.30 	has not been set aside;
41.1 	(8) if the individual has a disqualification which may not be set aside because it is a 
41.2 	permanent bar under section 245C.24, subdivision 1, or the individual is a child care 
41.3 	background study subject who has a felony-level conviction for a drug-related offense in 
41.4 	the last five years, the commissioner may order the immediate removal of the individual 
41.5 	from any position allowing direct contact with, or access to, persons receiving services from 
41.6 	the program and from working in a children's residential facility or foster residence setting; 
41.7 	and
41.8 	(9) if the individual has a disqualification which may not be set aside because it is a 
41.9 	permanent bar under section 245C.24, subdivision 2, or the individual is a child care 
41.10 	background study subject who has a felony-level conviction for a drug-related offense during 
41.11 	the last five years, the commissioner may order the immediate removal of the individual 
41.12 	from any position allowing direct contact with or access to persons receiving services from 
41.13 	the center and from working in a licensed child care center or certified license-exempt child 
41.14 	care center.
41.15 	(c) This section does not apply when the subject of a background study is regulated by 
41.16 	a health-related licensing board as defined in chapter 214, and the subject is determined to 
41.17 	be responsible for substantiated maltreatment under section 626.557 or chapter 260E.
41.18 	(d) This section does not apply to a background study related to an initial application 
41.19 	for a child foster family setting license.
41.20 	(e) Except for paragraph (f), this section does not apply to a background study that is 
41.21 	also subject to the requirements under section 256B.0659, subdivisions 11 and 13, for a 
41.22 	personal care assistant or a qualified professional as defined in section 256B.0659, 
41.23 	subdivision 1, or to a background study for an individual providing early intensive 
41.24 	developmental and behavioral intervention services under section 245A.142 or 256B.0949.
41.25 	(f) If the commissioner has reason to believe, based on arrest information or an active 
41.26 	maltreatment investigation, that an individual poses an imminent risk of harm to persons 
41.27 	receiving services, the commissioner may order that the person be continuously supervised 
41.28 	or immediately removed pending the conclusion of the maltreatment investigation or criminal 
41.29 	proceedings.

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

41.31 	Sec. 8. Minnesota Statutes 2024, section 245D.091, subdivision 2, is amended to read:
41.32 		Subd. 2.Positive support professional qualifications. A positive support professional 
41.33 	providing positive support services as identified in section 245D.03, subdivision 1, paragraph 
42.1 	(c), clause (1), item (i), must have competencies in the following areas as required under 
42.2 	the brain injury, community access for disability inclusion, community alternative care, and 
42.3 	developmental disabilities waiver plans or successor plans:
42.4 	(1) ethical considerations;
42.5 	(2) functional assessment;
42.6 	(3) functional analysis;
42.7 	(4) measurement of behavior and interpretation of data;
42.8 	(5) selecting intervention outcomes and strategies;
42.9 	(6) behavior reduction and elimination strategies that promote least restrictive approved 
42.10 	alternatives;
42.11 	(7) data collection;
42.12 	(8) staff and caregiver training;
42.13 	(9) support plan monitoring;
42.14 	(10) co-occurring mental disorders or neurocognitive disorder;
42.15 	(11) demonstrated expertise with populations being served; and
42.16 	(12) must be a:
42.17 	(i) psychologist licensed under sections 148.88 to 148.98, who has stated to the Board 
42.18 	of Psychology competencies in the above identified areas;
42.19 	(ii) clinical social worker licensed as an independent clinical social worker under chapter 
42.20 	148D, or a person with a master's degree in social work from an accredited college or 
42.21 	university, with at least 4,000 hours of post-master's supervised experience in the delivery 
42.22 	of clinical services in the areas identified in clauses (1) to (11);
42.23 	(iii) physician licensed under chapter 147 and certified by the American Board of 
42.24 	Psychiatry and Neurology or eligible for board certification in psychiatry with competencies 
42.25 	in the areas identified in clauses (1) to (11);
42.26 	(iv) licensed professional clinical counselor licensed under sections 148B.29 to 148B.39 
42.27 	with at least 4,000 hours of post-master's supervised experience in the delivery of clinical 
42.28 	services who has demonstrated competencies in the areas identified in clauses (1) to (11);
42.29 	(v) person with a master's degree from an accredited college or university in one of the 
42.30 	behavioral sciences or related fields, with at least 4,000 hours of post-master's supervised 
43.1 	experience in the delivery of clinical services with demonstrated competencies in the areas 
43.2 	identified in clauses (1) to (11);
43.3 	(vi) person with a master's degree or PhD in one of the behavioral sciences or related 
43.4 	fields with demonstrated expertise in positive support services, as determined by the person's 
43.5 	needs as outlined in the person's assessment summary; or
43.6 	(vii) registered nurse who is licensed under sections 148.171 to 148.285, and who is 
43.7 	certified as a clinical specialist or as a nurse practitioner in adult or family psychiatric and 
43.8 	mental health nursing by a national nurse certification organization, or who has a master's 
43.9 	degree in nursing or one of the behavioral sciences or related fields from an accredited 
43.10 	college or university or its equivalent, with at least 4,000 hours of post-master's supervised 
43.11 	experience in the delivery of clinical services; or
43.12 	(viii) person who has completed a competency-based training program as determined 
43.13 	by the commissioner.

43.14 	Sec. 9. Minnesota Statutes 2024, section 245D.091, subdivision 3, is amended to read:
43.15 		Subd. 3.Positive support analyst qualifications. (a) A positive support analyst providing 
43.16 	positive support services as identified in section 245D.03, subdivision 1, paragraph (c), 
43.17 	clause (1), item (i), must have competencies in one of the following areas satisfy one of the 
43.18 	following requirements as required under the brain injury, community access for disability 
43.19 	inclusion, community alternative care, and developmental disabilities waiver plans or 
43.20 	successor plans:
43.21 	(1) have obtained a baccalaureate degree, master's degree, or PhD in either a social 
43.22 	services discipline or nursing;
43.23 	(2) meet the qualifications of a mental health practitioner as defined in section 245.462, 
43.24 	subdivision 17; or
43.25 	(3) be a board-certified behavior analyst or board-certified assistant behavior analyst by 
43.26 	the Behavior Analyst Certification Board, Incorporated; or
43.27 	(4) have completed a competency-based training program as determined by the 
43.28 	commissioner.
43.29 	(b) In addition, a positive support analyst must:
43.30 	(1) either have two years of supervised experience conducting functional behavior 
43.31 	assessments and designing, implementing, and evaluating effectiveness of positive practices 
43.32 	behavior support strategies for people who exhibit challenging behaviors as well as 
44.1 	co-occurring mental disorders and neurocognitive disorder, or for those who have obtained 
44.2 	a baccalaureate degree in one of the behavioral sciences or related fields, demonstrated 
44.3 	expertise in positive support services;
44.4 	(2) have received training prior to hire or within 90 calendar days of hire that includes:
44.5 	(i) ten hours of instruction in functional assessment and functional analysis;
44.6 	(ii) 20 hours of instruction in the understanding of the function of behavior;
44.7 	(iii) ten hours of instruction on design of positive practices behavior support strategies;
44.8 	(iv) 20 hours of instruction preparing written intervention strategies, designing data 
44.9 	collection protocols, training other staff to implement positive practice strategies, 
44.10 	summarizing and reporting program evaluation data, analyzing program evaluation data to 
44.11 	identify design flaws in behavioral interventions or failures in implementation fidelity, and 
44.12 	recommending enhancements based on evaluation data; and
44.13 	(v) eight hours of instruction on principles of person-centered thinking;
44.14 	(3) be determined by a positive support professional to have the training and prerequisite 
44.15 	skills required to provide positive practice strategies as well as behavior reduction approved 
44.16 	and permitted intervention to the person who receives positive support; and
44.17 	(4) be under the direct supervision of a positive support professional.
44.18 	(c) Meeting the qualifications for a positive support professional under subdivision 2 
44.19 	shall substitute for meeting the qualifications listed in paragraph (b).

44.20 	Sec. 10. Minnesota Statutes 2024, section 245D.12, is amended to read:
44.21 	245D.12 INTEGRATED COMMUNITY SUPPORTS; SETTING CAPACITY 
44.22 	REPORT.
44.23 		Subdivision 1.Setting capacity report. (a) The license holder providing integrated 
44.24 	community support, as defined in section 245D.03, subdivision 1, paragraph (c), clause (8), 
44.25 	must submit a setting capacity report to the commissioner to ensure the identified location 
44.26 	of service delivery meets the criteria of the home and community-based service requirements 
44.27 	as specified in section 256B.492.
44.28 	(b) The license holder shall provide the setting capacity report on the forms and in the 
44.29 	manner prescribed by the commissioner. The report must include:
45.1 	(1) the address of the multifamily housing building where the license holder delivers 
45.2 	integrated community supports and owns, leases, or has a direct or indirect financial 
45.3 	relationship with the property owner;
45.4 	(2) the total number of living units in the multifamily housing building described in 
45.5 	clause (1) where integrated community supports are delivered;
45.6 	(3) the total number of living units in the multifamily housing building described in 
45.7 	clause (1), including the living units identified in clause (2);
45.8 	(4) the total number of people who could reside in the living units in the multifamily 
45.9 	housing building described in clause (2) and receive integrated community supports; and
45.10 	(5) the percentage of living units that are controlled by the license holder in the 
45.11 	multifamily housing building by dividing clause (2) by clause (3).
45.12 	(c) Only one license holder may deliver integrated community supports at the address 
45.13 	of the multifamily housing building.
45.14 		Subd. 2.Setting approval moratorium. (a) The commissioner must not approve an 
45.15 	integrated community supports setting for which a setting capacity report was submitted 
45.16 	between July 1, 2025, and June 30, 2027.
45.17 	(b) The commissioner may approve exceptions to the approval moratorium under this 
45.18 	subdivision if the commissioner determines:
45.19 	(1) a new integrated community supports setting is needed to provide integrated 
45.20 	community supports for a person requiring hospital-level care;
45.21 	(2) a new integrated community supports setting is needed for a licensed assisted living 
45.22 	facility that is closing or converting from an assisted living facility license to a licensed 
45.23 	integrated community supports provider; or
45.24 	(3) a new integrated community supports setting with specialized qualities, including 
45.25 	wheelchair accessible units, specialized equipment, or other unique qualities is needed to 
45.26 	meet the needs of a client identified by the local county board.
45.27 	(c) When approving an exception under this subdivision, the commissioner shall consider: 
45.28 	the availability of approved integrated community supports settings in the geographic area 
45.29 	where the licensee seeks to operate, including the number of living units approved and the 
45.30 	total number of people who could reside in the approved living units while receiving 
45.31 	integrated community services; the results of a person's choices during the person's annual 
45.32 	assessment and service plan review; and the recommendation of the local county board. 
46.1 	The approval or denial of an exception by the commissioner is final and is not subject to 
46.2 	appeal.

46.3 	Sec. 11. [245D.13] OUT-OF-HOME RESPITE CARE SERVICES FOR CHILDREN.
46.4 		Subdivision 1.Licensed setting required. A license holder with a home and 
46.5 	community-based services license providing out-of-home respite care services for children 
46.6 	may do so only in a licensed setting, unless exempt under subdivision 2. For the purposes 
46.7 	of this section, "respite care services" has the meaning given in section 245A.02, subdivision 
46.8 	15.
46.9 		Subd. 2.Exemption from licensed setting requirement. (a) The exemption under this 
46.10 	subdivision does not apply to the provision of respite care services to a child in foster care 
46.11 	under chapter 260C or 260D.
46.12 	(b) A license holder with a home and community-based services license may provide 
46.13 	out-of-home respite care services for children in an unlicensed residential setting if:
46.14 	(1) all background studies are completed according to the requirements in chapter 245C;
46.15 	(2) a child's case manager conducts and documents an assessment of the residential 
46.16 	setting and its environment before services are provided and at least once each calendar 
46.17 	year thereafter if services continue to be provided at that residence. The assessment must 
46.18 	ensure that the setting is suitable for the child receiving respite care services. The assessment 
46.19 	must be conducted and documented in the manner prescribed by the commissioner;
46.20 	(3) the child's legal representative visits the residence and signs and dates a statement 
46.21 	authorizing services in the residence before services are provided and at least once each 
46.22 	calendar year thereafter if services continue to be provided at that residence;
46.23 	(4) the services are provided in a residential setting that is not licensed to provide any 
46.24 	other licensed services;
46.25 	(5) the services are provided to no more than four children at any one time. Each child 
46.26 	must have an individual bedroom, except two siblings may share a bedroom;
46.27 	(6) the services are not provided to children and adults over the age of 21 in the same 
46.28 	residence at the same time;
46.29 	(7) the services are not provided to a single family for more than 46 calendar days in a 
46.30 	calendar year and no more than ten consecutive days;
46.31 	(8) the license holder's license was not made conditional, suspended, or revoked during 
46.32 	the previous 24 months; and
47.1 	(9) each individual in the residence at the time services are provided, other than 
47.2 	individuals receiving services, is an employee, as defined under section 245C.02, of the 
47.3 	license holder and has had a background study completed under chapter 245C. No other 
47.4 	household members or other individuals may be present in the residence while services are 
47.5 	provided.
47.6 	(c) A child may not receive out-of-home respite care services in more than two unlicensed 
47.7 	residential settings in a calendar year.
47.8 	(d) The license holder must ensure the requirements in this section are met.
47.9 		Subd. 3.Documentation requirements. The license holder must maintain documentation 
47.10 	of the following:
47.11 	(1) background studies completed under chapter 245C;
47.12 	(2) service recipient records indicating the calendar dates and times when services were 
47.13 	provided;
47.14 	(3) the case manager's initial residential setting assessment and each residential assessment 
47.15 	completed thereafter; and
47.16 	(4) the legal representative's approval of the residential setting before services are 
47.17 	provided and each year thereafter.

47.18 	EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval, 
47.19 	whichever is later. The commissioner of human services shall inform the revisor of statutes 
47.20 	when federal approval is obtained.

47.21 	Sec. 12. Minnesota Statutes 2024, section 252.32, subdivision 3, is amended to read:
47.22 		Subd. 3.Amount of support grant; use. (a) Support grant amounts shall be determined 
47.23 	by the county social service agency. Services and items purchased with a support grant 
47.24 	must:
47.25 	(1) be over and above the normal costs of caring for the dependent if the dependent did 
47.26 	not have a disability, including adaptive or one-on-one swimming lessons for drowning 
47.27 	prevention for a dependent younger than 12 years of age whose disability puts the dependent 
47.28 	at a higher risk of drowning according to the Centers for Disease Control Vital Statistics 
47.29 	System;
47.30 	(2) be directly attributable to the dependent's disabling condition; and
47.31 	(3) enable the family to delay or prevent the out-of-home placement of the dependent.
48.1 	(b) The design and delivery of services and items purchased under this section must be 
48.2 	provided in the least restrictive environment possible, consistent with the needs identified 
48.3 	in the individual service plan.
48.4 	(c) Items and services purchased with support grants must be those for which there are 
48.5 	no other public or private funds available to the family. Fees assessed to parents for health 
48.6 	or human services that are funded by federal, state, or county dollars are not reimbursable 
48.7 	through this program.
48.8 	(d) In approving or denying applications, the county shall consider the following factors:
48.9 	(1) the extent and areas of the functional limitations of a child with a disability;
48.10 	(2) the degree of need in the home environment for additional support; and
48.11 	(3) the potential effectiveness of the grant to maintain and support the person in the 
48.12 	family environment.
48.13 	(e) The maximum monthly grant amount shall be $250 per eligible dependent, or $3,000 
48.14 	per eligible dependent per state fiscal year, within the limits of available funds and as 
48.15 	adjusted by any legislatively authorized cost of living adjustment. The county social service 
48.16 	agency may consider the dependent's Supplemental Security Income in determining the 
48.17 	amount of the support grant.
48.18 	(f) Any adjustments to their monthly grant amount must be based on the needs of the 
48.19 	family and funding availability.

48.20 	Sec. 13. Minnesota Statutes 2024, section 256.476, subdivision 4, is amended to read:
48.21 		Subd. 4.Support grants; criteria and limitations. (a) A county board may choose to 
48.22 	participate in the consumer support grant program. If a county has not chosen to participate 
48.23 	by July 1, 2002, the commissioner shall contract with another county or other entity to 
48.24 	provide access to residents of the nonparticipating county who choose the consumer support 
48.25 	grant option. The commissioner shall notify the county board in a county that has declined 
48.26 	to participate of the commissioner's intent to enter into a contract with another county or 
48.27 	other entity at least 30 days in advance of entering into the contract. The local agency shall 
48.28 	establish written procedures and criteria to determine the amount and use of support grants. 
48.29 	These procedures must include, at least, the availability of respite care, assistance with daily 
48.30 	living, and adaptive aids. The local agency may establish monthly or annual maximum 
48.31 	amounts for grants and procedures where exceptional resources may be required to meet 
48.32 	the health and safety needs of the person on a time-limited basis, however, the total amount 
48.33 	awarded to each individual may not exceed the limits established in subdivision 11.
49.1 	(b) Support grants to a person, a person's legal representative, or other authorized 
49.2 	representative will be provided through a monthly subsidy payment and be in the form of 
49.3 	cash, voucher, or direct county payment to vendor. Support grant amounts must be determined 
49.4 	by the local agency. Each service and item purchased with a support grant must meet all of 
49.5 	the following criteria:
49.6 	(1) it must be over and above the normal cost of caring for the person if the person did 
49.7 	not have functional limitations, including adaptive or one-on-one swimming lessons for 
49.8 	drowning prevention for a person younger than 12 years of age whose disability puts the 
49.9 	person at a higher risk of drowning according to the Centers for Disease Control Vital 
49.10 	Statistics System;
49.11 	(2) it must be directly attributable to the person's functional limitations;
49.12 	(3) it must enable the person, a person's legal representative, or other authorized 
49.13 	representative to delay or prevent out-of-home placement of the person; and
49.14 	(4) it must be consistent with the needs identified in the service agreement, when 
49.15 	applicable.
49.16 	(c) Items and services purchased with support grants must be those for which there are 
49.17 	no other public or private funds available to the person, a person's legal representative, or 
49.18 	other authorized representative. Fees assessed to the person or the person's family for health 
49.19 	and human services are not reimbursable through the grant.
49.20 	(d) In approving or denying applications, the local agency shall consider the following 
49.21 	factors:
49.22 	(1) the extent and areas of the person's functional limitations;
49.23 	(2) the degree of need in the home environment for additional support; and
49.24 	(3) the potential effectiveness of the grant to maintain and support the person in the 
49.25 	family environment or the person's own home.
49.26 	(e) At the time of application to the program or screening for other services, the person, 
49.27 	a person's legal representative, or other authorized representative shall be provided sufficient 
49.28 	information to ensure an informed choice of alternatives by the person, the person's legal 
49.29 	representative, or other authorized representative, if any. The application shall be made to 
49.30 	the local agency and shall specify the needs of the person or the person's legal representative 
49.31 	or other authorized representative, the form and amount of grant requested, the items and 
49.32 	services to be reimbursed, and evidence of eligibility for medical assistance.
50.1 	(f) Upon approval of an application by the local agency and agreement on a support plan 
50.2 	for the person or the person's legal representative or other authorized representative, the 
50.3 	local agency shall make grants to the person or the person's legal representative or other 
50.4 	authorized representative. The grant shall be in an amount for the direct costs of the services 
50.5 	or supports outlined in the service agreement.
50.6 	(g) Reimbursable costs shall not include costs for resources already available, such as 
50.7 	special education classes, day training and habilitation, case management, other services to 
50.8 	which the person is entitled, medical costs covered by insurance or other health programs, 
50.9 	or other resources usually available at no cost to the person or the person's legal representative 
50.10 	or other authorized representative.
50.11 	(h) The state of Minnesota, the county boards participating in the consumer support 
50.12 	grant program, or the agencies acting on behalf of the county boards in the implementation 
50.13 	and administration of the consumer support grant program shall not be liable for damages, 
50.14 	injuries, or liabilities sustained through the purchase of support by the individual, the 
50.15 	individual's family, or the authorized representative under this section with funds received 
50.16 	through the consumer support grant program. Liabilities include but are not limited to: 
50.17 	workers' compensation liability, the Federal Insurance Contributions Act (FICA), or the 
50.18 	Federal Unemployment Tax Act (FUTA). For purposes of this section, participating county 
50.19 	boards and agencies acting on behalf of county boards are exempt from the provisions of 
50.20 	section 268.035.

50.21 	Sec. 14. Minnesota Statutes 2024, section 256B.04, subdivision 21, is amended to read:
50.22 		Subd. 21.Provider enrollment. (a) The commissioner shall enroll providers and conduct 
50.23 	screening activities as required by Code of Federal Regulations, title 42, section 455, subpart 
50.24 	E. A provider must enroll each provider-controlled location where direct services are 
50.25 	provided. The commissioner may deny a provider's incomplete application if a provider 
50.26 	fails to respond to the commissioner's request for additional information within 60 days of 
50.27 	the request. The commissioner must conduct a background study under chapter 245C, 
50.28 	including a review of databases in section 245C.08, subdivision 1, paragraph (a), clauses 
50.29 	(1) to (5), for a provider described in this paragraph. The background study requirement 
50.30 	may be satisfied if the commissioner conducted a fingerprint-based background study on 
50.31 	the provider that includes a review of databases in section 245C.08, subdivision 1, paragraph 
50.32 	(a), clauses (1) to (5).
50.33 	(b) The commissioner shall revalidate each:
50.34 	(1) each provider under this subdivision at least once every five years; and
51.1 	(2) each personal care assistance agency under this subdivision once every three years.; 
51.2 	and
51.3 	(3) at the commissioner's discretion, any other medical assistance provider type the 
51.4 	commissioner deems "high risk" under this subdivision.
51.5 	(c) The commissioner shall conduct revalidation as follows:
51.6 	(1) provide 30-day notice of the revalidation due date including instructions for 
51.7 	revalidation and a list of materials the provider must submit;
51.8 	(2) if a provider fails to submit all required materials by the due date, notify the provider 
51.9 	of the deficiency within 30 days after the due date and allow the provider an additional 30 
51.10 	days from the notification date to comply; and
51.11 	(3) if a provider fails to remedy a deficiency within the 30-day time period, give 60-day 
51.12 	notice of termination and immediately suspend the provider's ability to bill. The provider 
51.13 	does not have the right to appeal suspension of ability to bill.
51.14 	(d) If a provider fails to comply with any individual provider requirement or condition 
51.15 	of participation, the commissioner may suspend the provider's ability to bill until the provider 
51.16 	comes into compliance. The commissioner's decision to suspend the provider is not subject 
51.17 	to an administrative appeal.
51.18 	(e) Correspondence and notifications, including notifications of termination and other 
51.19 	actions, may be delivered electronically to a provider's MN-ITS mailbox. This paragraph 
51.20 	does not apply to correspondences and notifications related to background studies.
51.21 	(f) If the commissioner or the Centers for Medicare and Medicaid Services determines 
51.22 	that a provider is designated "high-risk," the commissioner may withhold payment from 
51.23 	providers within that category upon initial enrollment for a 90-day period. The withholding 
51.24 	for each provider must begin on the date of the first submission of a claim.
51.25 	(g) An enrolled provider that is also licensed by the commissioner under chapter 245A, 
51.26 	is licensed as a home care provider by the Department of Health under chapter 144A, or is 
51.27 	licensed as an assisted living facility under chapter 144G and has a home and 
51.28 	community-based services designation on the home care license under section 144A.484, 
51.29 	must designate an individual as the entity's compliance officer. The compliance officer 
51.30 	must:
51.31 	(1) develop policies and procedures to assure adherence to medical assistance laws and 
51.32 	regulations and to prevent inappropriate claims submissions;
52.1 	(2) train the employees of the provider entity, and any agents or subcontractors of the 
52.2 	provider entity including billers, on the policies and procedures under clause (1);
52.3 	(3) respond to allegations of improper conduct related to the provision or billing of 
52.4 	medical assistance services, and implement action to remediate any resulting problems;
52.5 	(4) use evaluation techniques to monitor compliance with medical assistance laws and 
52.6 	regulations;
52.7 	(5) promptly report to the commissioner any identified violations of medical assistance 
52.8 	laws or regulations; and
52.9 	(6) within 60 days of discovery by the provider of a medical assistance reimbursement 
52.10 	overpayment, report the overpayment to the commissioner and make arrangements with 
52.11 	the commissioner for the commissioner's recovery of the overpayment.
52.12 	The commissioner may require, as a condition of enrollment in medical assistance, that a 
52.13 	provider within a particular industry sector or category establish a compliance program that 
52.14 	contains the core elements established by the Centers for Medicare and Medicaid Services.
52.15 	(h) The commissioner may revoke the enrollment of an ordering or rendering provider 
52.16 	for a period of not more than one year, if the provider fails to maintain and, upon request 
52.17 	from the commissioner, provide access to documentation relating to written orders or requests 
52.18 	for payment for durable medical equipment, certifications for home health services, or 
52.19 	referrals for other items or services written or ordered by such provider, when the 
52.20 	commissioner has identified a pattern of a lack of documentation. A pattern means a failure 
52.21 	to maintain documentation or provide access to documentation on more than one occasion. 
52.22 	Nothing in this paragraph limits the authority of the commissioner to sanction a provider 
52.23 	under the provisions of section 256B.064.
52.24 	(i) The commissioner shall terminate or deny the enrollment of any individual or entity 
52.25 	if the individual or entity has been terminated from participation in Medicare or under the 
52.26 	Medicaid program or Children's Health Insurance Program of any other state. The 
52.27 	commissioner may exempt a rehabilitation agency from termination or denial that would 
52.28 	otherwise be required under this paragraph, if the agency:
52.29 	(1) is unable to retain Medicare certification and enrollment solely due to a lack of billing 
52.30 	to the Medicare program;
52.31 	(2) meets all other applicable Medicare certification requirements based on an on-site 
52.32 	review completed by the commissioner of health; and
52.33 	(3) serves primarily a pediatric population.
53.1 	(j) As a condition of enrollment in medical assistance, the commissioner shall require 
53.2 	that a provider designated "moderate" or "high-risk" by the Centers for Medicare and 
53.3 	Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid 
53.4 	Services, its agents, or its designated contractors and the state agency, its agents, or its 
53.5 	designated contractors to conduct unannounced on-site inspections of any provider location. 
53.6 	The commissioner shall publish in the Minnesota Health Care Program Provider Manual a 
53.7 	list of provider types designated "limited," "moderate," or "high-risk," based on the criteria 
53.8 	and standards used to designate Medicare providers in Code of Federal Regulations, title 
53.9 	42, section 424.518. The list and criteria are not subject to the requirements of chapter 14. 
53.10 	The commissioner's designations are not subject to administrative appeal.
53.11 	(k) As a condition of enrollment in medical assistance, the commissioner shall require 
53.12 	that a high-risk provider, or a person with a direct or indirect ownership interest in the 
53.13 	provider of five percent or higher, consent to criminal background checks, including 
53.14 	fingerprinting, when required to do so under state law or by a determination by the 
53.15 	commissioner or the Centers for Medicare and Medicaid Services that a provider is designated 
53.16 	high-risk for fraud, waste, or abuse.
53.17 	(l)(1) Upon initial enrollment, reenrollment, and notification of revalidation, all durable 
53.18 	medical equipment, prosthetics, orthotics, and supplies (DMEPOS) medical suppliers 
53.19 	meeting the durable medical equipment provider and supplier definition in clause (3), 
53.20 	operating in Minnesota and receiving Medicaid funds must purchase a surety bond that is 
53.21 	annually renewed and designates the Minnesota Department of Human Services as the 
53.22 	obligee, and must be submitted in a form approved by the commissioner. For purposes of 
53.23 	this clause, the following medical suppliers are not required to obtain a surety bond: a 
53.24 	federally qualified health center, a home health agency, the Indian Health Service, a 
53.25 	pharmacy, and a rural health clinic.
53.26 	(2) At the time of initial enrollment or reenrollment, durable medical equipment providers 
53.27 	and suppliers defined in clause (3) must purchase a surety bond of $50,000. If a revalidating 
53.28 	provider's Medicaid revenue in the previous calendar year is up to and including $300,000, 
53.29 	the provider agency must purchase a surety bond of $50,000. If a revalidating provider's 
53.30 	Medicaid revenue in the previous calendar year is over $300,000, the provider agency must 
53.31 	purchase a surety bond of $100,000. The surety bond must allow for recovery of costs and 
53.32 	fees in pursuing a claim on the bond.
53.33 	(3) "Durable medical equipment provider or supplier" means a medical supplier that can 
53.34 	purchase medical equipment or supplies for sale or rental to the general public and is able 
54.1 	to perform or arrange for necessary repairs to and maintenance of equipment offered for 
54.2 	sale or rental.
54.3 	(m) The Department of Human Services may require a provider to purchase a surety 
54.4 	bond as a condition of initial enrollment, reenrollment, reinstatement, or continued enrollment 
54.5 	if: (1) the provider fails to demonstrate financial viability, (2) the department determines 
54.6 	there is significant evidence of or potential for fraud and abuse by the provider, or (3) the 
54.7 	provider or category of providers is designated high-risk pursuant to paragraph (f) and as 
54.8 	per Code of Federal Regulations, title 42, section 455.450. The surety bond must be in an 
54.9 	amount of $100,000 or ten percent of the provider's payments from Medicaid during the 
54.10 	immediately preceding 12 months, whichever is greater. The surety bond must name the 
54.11 	Department of Human Services as an obligee and must allow for recovery of costs and fees 
54.12 	in pursuing a claim on the bond. This paragraph does not apply if the provider currently 
54.13 	maintains a surety bond under the requirements in section 256B.0659 or 256B.85.

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

54.15 	Sec. 15. Minnesota Statutes 2024, section 256B.0659, subdivision 17a, is amended to 
54.16 	read:
54.17 		Subd. 17a.Enhanced rate. (a) An enhanced rate of 107.5 percent of the rate paid for 
54.18 	personal care assistance services shall be paid for services provided to persons who qualify 
54.19 	for ten or more hours of personal care assistance services per day when provided by a 
54.20 	personal care assistant who meets the requirements of subdivision 11, paragraph (d). This 
54.21 	paragraph expires upon the effective date of paragraph (b).
54.22 	(b) Effective January 1, 2026, or upon federal approval, whichever is later, an enhanced 
54.23 	rate of 112.5 percent of the rate paid for personal care assistance services shall be paid for 
54.24 	services provided to persons who qualify for ten or more hours of personal care assistance 
54.25 	services per day when provided by a personal care assistant who meets the requirements of 
54.26 	subdivision 11, paragraph (d).
54.27 	(b) (c) A personal care assistance provider must use all additional revenue attributable 
54.28 	to the rate enhancements under this subdivision for the wages and wage-related costs of the 
54.29 	personal care assistants, including any corresponding increase in the employer's share of 
54.30 	FICA taxes, Medicare taxes, state and federal unemployment taxes, and workers' 
54.31 	compensation premiums. The agency must not use the additional revenue attributable to 
54.32 	any enhanced rate under this subdivision to pay for mileage reimbursement, health and 
54.33 	dental insurance, life insurance, disability insurance, long-term care insurance, uniform 
54.34 	allowance, contributions to employee retirement accounts, or any other employee benefits.
55.1 	(c) (d) Any change in the eligibility criteria for the enhanced rate for personal care 
55.2 	assistance services as described in this subdivision and referenced in subdivision 11, 
55.3 	paragraph (d), does not constitute a change in a term or condition for individual providers 
55.4 	as defined in section 256B.0711, and is not subject to the state's obligation to meet and 
55.5 	negotiate under chapter 179A.

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

55.7 	Sec. 16. Minnesota Statutes 2024, section 256B.0911, subdivision 1, is amended to read:
55.8 		Subdivision 1.Purpose and goal. (a) The purpose of long-term care consultation services 
55.9 	is to assist persons with long-term or chronic care needs in making care decisions and 
55.10 	selecting support and service options that meet their needs and reflect their preferences. 
55.11 	The availability of, and access to, information and other types of assistance, including 
55.12 	long-term care consultation assessment and support planning, is also intended to prevent 
55.13 	or delay institutional placements and to provide access to transition assistance after 
55.14 	placement. Further, the goal of long-term care consultation services is to contain costs 
55.15 	associated with unnecessary institutional admissions. Long-term care consultation services 
55.16 	must be available to any person regardless of public program eligibility.
55.17 	(b) The commissioner of human services shall seek to maximize use of available federal 
55.18 	and state funds and establish the broadest program possible within the funding available.
55.19 	(c) Long-term care consultation services must be coordinated with long-term care options 
55.20 	counseling, long-term care options counseling for assisted living at critical care transitions, 
55.21 	the Disability Hub, and preadmission screening.
55.22 	(d) A lead agency providing long-term care consultation services shall encourage the 
55.23 	use of volunteers from families, religious organizations, social clubs, and similar civic and 
55.24 	service organizations to provide community-based services.

55.25 	Sec. 17. Minnesota Statutes 2024, section 256B.0911, subdivision 10, is amended to read:
55.26 		Subd. 10.Definitions. (a) For purposes of this section, the following definitions apply.
55.27 	(b) "Available service and setting options" or "available options," with respect to the 
55.28 	home and community-based waivers under chapter 256S and sections 256B.092 and 256B.49, 
55.29 	means all services and settings defined under the waiver plan for which a waiver applicant 
55.30 	or waiver participant is eligible.
55.31 	(c) "Competitive employment" means work in the competitive labor market that is 
55.32 	performed on a full-time or part-time basis in an integrated setting, and for which an 
56.1 	individual is compensated at or above the minimum wage, but not less than the customary 
56.2 	wage and level of benefits paid by the employer for the same or similar work performed by 
56.3 	individuals without disabilities.
56.4 	(d) "Cost-effective" means community services and living arrangements that cost the 
56.5 	same as or less than institutional care. For an individual found to meet eligibility criteria 
56.6 	for home and community-based service programs under chapter 256S or section 256B.49, 
56.7 	"cost-effectiveness" has the meaning found in the federally approved waiver plan for each 
56.8 	program.
56.9 	(e) "Independent living" means living in a setting that is not controlled by a provider.
56.10 	(f) "Informed choice" has the meaning given in section 256B.4905, subdivision 1a.
56.11 	(g) "Lead agency" means a county administering or a Tribe or health plan under contract 
56.12 	with the commissioner to administer long-term care consultation services.
56.13 	(h) "Long-term care consultation services" means the activities described in subdivision 
56.14 	11.
56.15 	(i) "Long-term care options counseling" means the services provided by sections 256.01, 
56.16 	subdivision 24, and 256.975, subdivision 7, and also includes telephone assistance and 
56.17 	follow-up after a long-term care consultation assessment has been completed.
56.18 	(j) "Long-term care options counseling for assisted living at critical care transitions" 
56.19 	means the services provided under section 256.975, subdivisions subdivision 7eto 7g.
56.20 	(k) "Minnesota health care programs" means the medical assistance program under this 
56.21 	chapter and the alternative care program under section 256B.0913.
56.22 	(l) "Person-centered planning" is a process that includes the active participation of a 
56.23 	person in the planning of the person's services, including in making meaningful and informed 
56.24 	choices about the person's own goals, talents, and objectives, as well as making meaningful 
56.25 	and informed choices about the services the person receives, the settings in which the person 
56.26 	receives the services, and the setting in which the person lives.
56.27 	(m) "Preadmission screening" means the services provided under section 256.975, 
56.28 	subdivisions 7a to 7c.

56.29 	Sec. 18. Minnesota Statutes 2024, section 256B.0911, subdivision 13, is amended to read:
56.30 		Subd. 13.MnCHOICES assessor qualifications, training, and certification. (a) The 
56.31 	commissioner shall develop and implement a curriculum and an assessor certification 
56.32 	process.
57.1 	(b) MnCHOICES certified assessors must have received training and certification specific 
57.2 	to assessment and consultation for long-term care services in the state and either:
57.3 	(1) either have a bachelor's at least an associate's degree in social work, human services, 
57.4 	or other closely related field;
57.5 	(2) have at least an associate's degree in nursing with a public health nursing certificate, 
57.6 	or other closely related field; or
57.7 	(3) be a registered nurse; and.
57.8 	(2) have received training and certification specific to assessment and consultation for 
57.9 	long-term care services in the state.
57.10 	(c) Certified assessors shall demonstrate best practices in assessment and support 
57.11 	planning, including person-centered planning principles, and have a common set of skills 
57.12 	that ensures consistency and equitable access to services statewide.
57.13 	(d) Certified assessors must be recertified every three years.

57.14 	Sec. 19. Minnesota Statutes 2024, section 256B.0911, subdivision 14, is amended to read:
57.15 		Subd. 14.Use of MnCHOICES certified assessors required. (a) Each lead agency 
57.16 	shall use MnCHOICES certified assessors who have completed MnCHOICES training and 
57.17 	the certification process determined by the commissioner in subdivision 13.
57.18 	(b) Each lead agency must ensure that the lead agency has sufficient numbers of certified 
57.19 	assessors to provide long-term consultation assessment and support planning within the 
57.20 	timelines and parameters of the service.
57.21 	(c) A lead agency may choose, according to departmental policies, to contract with a 
57.22 	qualified, certified assessor to conduct assessments and reassessments on behalf of the lead 
57.23 	agency.
57.24 	(d) Tribes and health plans under contract with the commissioner must provide long-term 
57.25 	care consultation services as specified in the contract.
57.26 	(e) A lead agency must provide the commissioner with an administrative contact for 
57.27 	communication purposes.
57.28 	(f) A lead agency may contract under this subdivision with any hospital licensed under 
57.29 	sections 144.50 to 144.56 to conduct assessments of patients in the hospital on behalf of 
57.30 	the lead agency when the lead agency has failed to meet its obligations under subdivision 
57.31 	17. The contracted assessment must be conducted by a hospital employee who is a qualified, 
58.1 	certified assessor. The hospital employees who perform assessments under the contract 
58.2 	between the hospital and the lead agency may perform assessments in addition to other 
58.3 	duties assigned to the employee by the hospital, except the hospital employees who perform 
58.4 	the assessments under contract with the lead agency must not perform any waiver-related 
58.5 	tasks other than assessments. Hospitals are not eligible for reimbursement under subdivision 
58.6 	33. The lead agency that enters into a contract with a hospital under this paragraph is 
58.7 	responsible for oversight, compliance, and quality assurance for all assessments performed 
58.8 	under the contract.

58.9 	Sec. 20. Minnesota Statutes 2024, section 256B.0911, subdivision 24, is amended to read:
58.10 		Subd. 24.Remote reassessments. (a) Assessments performed according to subdivisions 
58.11 	17 to 20 and 23 must be in person unless the assessment is a reassessment meeting the 
58.12 	requirements of this subdivision. Remote reassessments conducted by interactive video or 
58.13 	telephone may substitute for in-person reassessments.
58.14 	(b) For services provided by the developmental disabilities waiver under section 
58.15 	256B.092, and the community access for disability inclusion, community alternative care, 
58.16 	and brain injury waiver programs under section 256B.49, remote reassessments may be 
58.17 	substituted for two four consecutive reassessments if followed by an in-person reassessment.
58.18 	(c) For services provided by alternative care under section 256B.0913, essential 
58.19 	community supports under section 256B.0922, and the elderly waiver under chapter 256S, 
58.20 	remote reassessments may be substituted for one reassessment if followed by an in-person 
58.21 	reassessment.
58.22 	(d) For personal care assistance provided under section 256B.0659 and community first 
58.23 	services and supports provided under section 256B.85, remote reassessments may be 
58.24 	substituted for two consecutive reassessments if followed by an in-person reassessment.
58.25 	(e) A remote reassessment is permitted only if the lead agency provides informed choice 
58.26 	and the person being reassessed or the person's legal representative provides informed 
58.27 	consent for a remote assessment. Lead agencies must document that informed choice was 
58.28 	offered.
58.29 	(f) The person being reassessed, or the person's legal representative, may refuse a remote 
58.30 	reassessment at any time.
58.31 	(g) During a remote reassessment, if the certified assessor determines an in-person 
58.32 	reassessment is necessary in order to complete the assessment, the lead agency shall schedule 
58.33 	an in-person reassessment.
59.1 	(h) All other requirements of an in-person reassessment apply to a remote reassessment, 
59.2 	including updates to a person's support plan.

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

59.6 	Sec. 21. Minnesota Statutes 2024, section 256B.0911, is amended by adding a subdivision 
59.7 	to read:
59.8 		Subd. 24a.Verbal attestation to replace required reassessment signatures. Effective 
59.9 	January 1, 2026, or upon federal approval, whichever is later, the commissioner shall allow 
59.10 	for verbal attestation to replace required reassessment signatures.

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

59.12 	Sec. 22. Minnesota Statutes 2024, section 256B.0911, is amended by adding a subdivision 
59.13 	to read:
59.14 		Subd. 25a.Attesting to no changes in needs or services. (a) A person who is older 
59.15 	than 21 years of age, under 65 years of age, and receiving home and community-based 
59.16 	waiver services under the developmental disabilities waiver program under section 256B.092; 
59.17 	community access for disability inclusion, community alternative care, and brain injury 
59.18 	waiver programs under section 256B.49; or community first services and supports under 
59.19 	section 256B.85 may attest that the person has unchanged needs from the most recent prior 
59.20 	assessment or reassessment for up to two consecutive reassessments if the lead agency 
59.21 	provides informed choice and the person being reassessed or the person's legal representative 
59.22 	provides informed consent. Lead agencies must document that informed choice was offered.
59.23 	(b) The person or person's legal representative must attest, verbally or through alternative 
59.24 	communications, that the information provided in the previous assessment or reassessment 
59.25 	is still accurate and applicable and that no changes in the person's circumstances have 
59.26 	occurred that would require changes from the most recent prior assessment or reassessment. 
59.27 	The person or the person's legal representative may request a full reassessment at any time.
59.28 	(c) The assessor must review the most recent prior assessment or reassessment as required 
59.29 	in subdivision 22, paragraphs (a) and (b), clause (1), before conducting the interview. The 
59.30 	certified assessor must confirm that the information from the previous assessment or 
59.31 	reassessment is current.
59.32 	(d) The assessment conducted under this section must:
60.1 	(1) verify current assessed support needs;
60.2 	(2) confirm continued need for the currently assessed level of care;
60.3 	(3) inform the person of alternative long-term services and supports available;
60.4 	(4) provide informed choice of institutional or home and community-based services; 
60.5 	and
60.6 	(5) identify changes in need that may require a full reassessment.
60.7 	(e) The assessor must ensure that any new assessment items or requirements mandated 
60.8 	by federal or state authority are addressed and the person must provide required information.

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

60.12 	Sec. 23. Minnesota Statutes 2024, section 256B.0911, subdivision 26, is amended to read:
60.13 		Subd. 26.Determination of institutional level of care. (a) The determination of need 
60.14 	for hospital and intermediate care facility levels of care must be made according to criteria 
60.15 	developed by the commissioner, and in section 256B.092, using forms developed by the 
60.16 	commissioner.
60.17 	(b) Except as provided in paragraph (c), the determination of need for nursing facility 
60.18 	level of care must be made based on criteria in section 144.0724, subdivision 11.
60.19 	(c) Effective for determinations of need for nursing level of care made on or after January 
60.20 	1, 2027, for the purposes of waiver services provided under section 256B.49, the 
60.21 	commissioner must make the determination of need for nursing facility level of care based 
60.22 	on the criteria in section 144.0724, subdivision 11, paragraph (a), clauses (1) to (6). If a 
60.23 	person is found ineligible for waiver services under this paragraph because of a determination 
60.24 	that the person meets only the nursing facility level of care under section 144.0724, 
60.25 	subdivision 11, paragraph (a), clause (7), the lead agency must review the person's latest 
60.26 	assessment under section 256B.0911 to determine if the person meets any of the nursing 
60.27 	facility level of care criteria under section 144.0724, subdivision 11, paragraph (a), clauses 
60.28 	(1) to (6). If the lead agency determines after the review that the person does not meet any 
60.29 	of the nursing facility level of care criteria under section 144.0724, subdivision 11, paragraph 
60.30 	(a), clauses (1) to (6), the lead agency must provide a notice of action to the person informing 
60.31 	the person specifically that the person's waiver services are being terminated because the 
60.32 	person meets only the nursing facility level of care of under section 144.0724, subdivision 
61.1 	11, paragraph (a), clause (7), which is no longer a basis for waiver eligibility. The lead 
61.2 	agency must also inform the person of other benefits options for which the person may be 
61.3 	eligible. For existing waiver participants, the effective date of the termination of waiver 
61.4 	services based on this paragraph must be no sooner than 90 days after the date of the 
61.5 	assessment under section 256B.0911.

61.6 	Sec. 24. Minnesota Statutes 2024, section 256B.0911, is amended by adding a subdivision 
61.7 	to read:
61.8 		Subd. 35.Dashboard on assessment completions. (a) The commissioner shall maintain 
61.9 	a dashboard on the department's public website containing summary data on the completion 
61.10 	of assessments under this section. The commissioner must update the dashboard at least 
61.11 	twice per year.
61.12 	(b) The dashboard must include:
61.13 	(1) the total number of assessments performed since the previous reporting period, by 
61.14 	lead agency;
61.15 	(2) the total number of initial assessments performed since the previous reporting period, 
61.16 	by lead agency;
61.17 	(3) the total number of reassessments performed since the previous reporting period, by 
61.18 	lead agency;
61.19 	(4) the number and percentage of assessments completed within the required timeline, 
61.20 	by a lead agency;
61.21 	(5) the average length of time to complete an assessment, by a lead agency;
61.22 	(6) summary data of the location in which the assessments were performed, by lead 
61.23 	agency; and
61.24 	(7) other information the commissioner determines is valuable to assess the capacity of 
61.25 	lead agencies to complete assessments within the timelines prescribed by law.

61.26 	Sec. 25. Minnesota Statutes 2024, section 256B.0924, subdivision 6, is amended to read:
61.27 		Subd. 6.Payment for targeted case management. (a) Medical assistance and 
61.28 	MinnesotaCare payment for targeted case management shall be made on a monthly basis. 
61.29 	In order to receive payment for an eligible adult, the provider must document at least one 
61.30 	contact per month and not more than two consecutive months without a face-to-face contact 
61.31 	either in person or by interactive video that meets the requirements in section 256B.0625, 
62.1 	subdivision 20b, with the adult or the adult's legal representative, family, primary caregiver, 
62.2 	or other relevant persons identified as necessary to the development or implementation of 
62.3 	the goals of the personal service plan.
62.4 	(b) Except as provided under paragraph (m), payment for targeted case management 
62.5 	provided by county staff under this subdivision shall be based on the monthly rate 
62.6 	methodology under section 256B.094, subdivision 6, paragraph (b), calculated as one 
62.7 	combined average rate together with adult mental health case management under section 
62.8 	256B.0625, subdivision 20, except for calendar year 2002. In calendar year 2002, the rate 
62.9 	for case management under this section shall be the same as the rate for adult mental health 
62.10 	case management in effect as of December 31, 2001. Billing and payment must identify the 
62.11 	recipient's primary population group to allow tracking of revenues.
62.12 	(c) Payment for targeted case management provided by county-contracted vendors shall 
62.13 	be based on a monthly rate calculated in accordance with section 256B.076, subdivision 2. 
62.14 	The rate must not exceed the rate charged by the vendor for the same service to other payers. 
62.15 	If the service is provided by a team of contracted vendors, the team shall determine how to 
62.16 	distribute the rate among its members. No reimbursement received by contracted vendors 
62.17 	shall be returned to the county, except to reimburse the county for advance funding provided 
62.18 	by the county to the vendor.
62.19 	(d) If the service is provided by a team that includes contracted vendors and county staff, 
62.20 	the costs for county staff participation on the team shall be included in the rate for 
62.21 	county-provided services. In this case, the contracted vendor and the county may each 
62.22 	receive separate payment for services provided by each entity in the same month. In order 
62.23 	to prevent duplication of services, the county must document, in the recipient's file, the need 
62.24 	for team targeted case management and a description of the different roles of the team 
62.25 	members.
62.26 	(e) Notwithstanding section 256B.19, subdivision 1, the nonfederal share of costs for 
62.27 	targeted case management shall be provided by the recipient's county of responsibility, as 
62.28 	defined in sections 256G.01 to 256G.12, from sources other than federal funds or funds 
62.29 	used to match other federal funds.
62.30 	(f) The commissioner may suspend, reduce, or terminate reimbursement to a provider 
62.31 	that does not meet the reporting or other requirements of this section. The county of 
62.32 	responsibility, as defined in sections 256G.01 to 256G.12, is responsible for any federal 
62.33 	disallowances. The county may share this responsibility with its contracted vendors.
63.1 	(g) The commissioner shall set aside five percent of the federal funds received under 
63.2 	this section for use in reimbursing the state for costs of developing and implementing this 
63.3 	section.
63.4 	(h) Payments to counties for targeted case management expenditures under this section 
63.5 	shall only be made from federal earnings from services provided under this section. Payments 
63.6 	to contracted vendors shall include both the federal earnings and the county share.
63.7 	(i) Notwithstanding section 256B.041, county payments for the cost of case management 
63.8 	services provided by county staff shall not be made to the commissioner of management 
63.9 	and budget. For the purposes of targeted case management services provided by county 
63.10 	staff under this section, the centralized disbursement of payments to counties under section 
63.11 	256B.041 consists only of federal earnings from services provided under this section.
63.12 	(j) If the recipient is a resident of a nursing facility, intermediate care facility, or hospital, 
63.13 	and the recipient's institutional care is paid by medical assistance, payment for targeted case 
63.14 	management services under this subdivision is limited to the lesser of:
63.15 	(1) the last 180 days of the recipient's residency in that facility; or
63.16 	(2) the limits and conditions which apply to federal Medicaid funding for this service.
63.17 	(k) Payment for targeted case management services under this subdivision shall not 
63.18 	duplicate payments made under other program authorities for the same purpose.
63.19 	(l) Any growth in targeted case management services and cost increases under this 
63.20 	section shall be the responsibility of the counties.
63.21 	(m) The commissioner may make payments for Tribes according to section 256B.0625, 
63.22 	subdivision 34, or other relevant federally approved rate setting methodologies for vulnerable 
63.23 	adult and developmental disability targeted case management provided by Indian health 
63.24 	services and facilities operated by a Tribe or Tribal organization.

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

63.26 	Sec. 26. Minnesota Statutes 2024, section 256B.0949, subdivision 2, is amended to read:
63.27 		Subd. 2.Definitions. (a) The terms used in this section have the meanings given in this 
63.28 	subdivision.
63.29 	(b) "Advanced certification" means a person who has completed advanced certification 
63.30 	in an approved modality under subdivision 13, paragraph (b).
64.1 	(c) "Agency" means the legal entity that is enrolled with Minnesota health care programs 
64.2 	as a medical assistance provider according to Minnesota Rules, part 9505.0195, to provide 
64.3 	EIDBI services and that has the legal responsibility to ensure that its employees or contractors 
64.4 	carry out the responsibilities defined in this section. Agency includes a licensed individual 
64.5 	professional who practices independently and acts as an agency.
64.6 	(d) "Autism spectrum disorder or a related condition" or "ASD or a related condition" 
64.7 	means either autism spectrum disorder (ASD) as defined in the current version of the 
64.8 	Diagnostic and Statistical Manual of Mental Disorders (DSM) or a condition that is found 
64.9 	to be closely related to ASD, as identified under the current version of the DSM, and meets 
64.10 	all of the following criteria:
64.11 	(1) is severe and chronic;
64.12 	(2) results in impairment of adaptive behavior and function similar to that of a person 
64.13 	with ASD;
64.14 	(3) requires treatment or services similar to those required for a person with ASD; and
64.15 	(4) results in substantial functional limitations in three core developmental deficits of 
64.16 	ASD: social or interpersonal interaction; functional communication, including nonverbal 
64.17 	or social communication; and restrictive or repetitive behaviors or hyperreactivity or 
64.18 	hyporeactivity to sensory input; and may include deficits or a high level of support in one 
64.19 	or more of the following domains:
64.20 	(i) behavioral challenges and self-regulation;
64.21 	(ii) cognition;
64.22 	(iii) learning and play;
64.23 	(iv) self-care; or
64.24 	(v) safety.
64.25 	(e) "Person" means a person under 21 years of age.
64.26 	(f) "Clinical supervision" means the overall responsibility for the control and direction 
64.27 	of EIDBI service delivery, including individual treatment planning, staff supervision, 
64.28 	individual treatment plan progress monitoring, and treatment review for each person. Clinical 
64.29 	supervision is provided by a qualified supervising professional (QSP) who takes full 
64.30 	professional responsibility for the service provided by each supervisee.
64.31 	(g) "Commissioner" means the commissioner of human services, unless otherwise 
64.32 	specified.
65.1 	(h) "Comprehensive multidisciplinary evaluation" or "CMDE" means a comprehensive 
65.2 	evaluation of a person to determine medical necessity for EIDBI services based on the 
65.3 	requirements in subdivision 5.
65.4 	(i) "Department" means the Department of Human Services, unless otherwise specified.
65.5 	(j) "Early intensive developmental and behavioral intervention benefit" or "EIDBI 
65.6 	benefit" means a variety of individualized, intensive treatment modalities approved and 
65.7 	published by the commissioner that are based in behavioral and developmental science 
65.8 	consistent with best practices on effectiveness.
65.9 	(k) "Employee" means any person who is employed by an agency, including temporary 
65.10 	and part-time employees, and who performs work for at least 80 hours in a year for that 
65.11 	agency in Minnesota. Employee does not include an independent contractor.
65.12 	(k) (l) "Generalizable goals" means results or gains that are observed during a variety 
65.13 	of activities over time with different people, such as providers, family members, other adults, 
65.14 	and people, and in different environments including, but not limited to, clinics, homes, 
65.15 	schools, and the community.
65.16 	(l) (m) "Incident" means when any of the following occur:
65.17 	(1) an illness, accident, or injury that requires first aid treatment;
65.18 	(2) a bump or blow to the head; or
65.19 	(3) an unusual or unexpected event that jeopardizes the safety of a person or staff, 
65.20 	including a person leaving the agency unattended.
65.21 	(m) (n) "Individual treatment plan" or "ITP" means the person-centered, individualized 
65.22 	written plan of care that integrates and coordinates person and family information from the 
65.23 	CMDE for a person who meets medical necessity for the EIDBI benefit. An individual 
65.24 	treatment plan must meet the standards in subdivision 6.
65.25 	(n) (o) "Legal representative" means the parent of a child who is under 18 years of age, 
65.26 	a court-appointed guardian, or other representative with legal authority to make decisions 
65.27 	about service for a person. For the purpose of this subdivision, "other representative with 
65.28 	legal authority to make decisions" includes a health care agent or an attorney-in-fact 
65.29 	authorized through a health care directive or power of attorney.
65.30 	(o) (p) "Mental health professional" means a staff person who is qualified according to 
65.31 	section 245I.04, subdivision 2.
66.1 	(p) (q) "Person-centered" means a service that both responds to the identified needs, 
66.2 	interests, values, preferences, and desired outcomes of the person or the person's legal 
66.3 	representative and respects the person's history, dignity, and cultural background and allows 
66.4 	inclusion and participation in the person's community.
66.5 	(q) (r) "Qualified EIDBI provider" means a person who is a QSP or a level I, level II, 
66.6 	or level III treatment provider.

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

66.8 	Sec. 27. Minnesota Statutes 2024, section 256B.0949, subdivision 15, is amended to read:
66.9 		Subd. 15.EIDBI provider qualifications. (a) A QSP must be employed by an employee 
66.10 	of an agency and be:
66.11 	(1) a licensed mental health professional who has at least 2,000 hours of supervised 
66.12 	clinical experience or training in examining or treating people with ASD or a related condition 
66.13 	or equivalent documented coursework at the graduate level by an accredited university in 
66.14 	ASD diagnostics, ASD developmental and behavioral treatment strategies, and typical child 
66.15 	development; or
66.16 	(2) a developmental or behavioral pediatrician who has at least 2,000 hours of supervised 
66.17 	clinical experience or training in examining or treating people with ASD or a related condition 
66.18 	or equivalent documented coursework at the graduate level by an accredited university in 
66.19 	the areas of ASD diagnostics, ASD developmental and behavioral treatment strategies, and 
66.20 	typical child development.
66.21 	(b) A level I treatment provider must be employed by an employee of an agency and:
66.22 	(1) have at least 2,000 hours of supervised clinical experience or training in examining 
66.23 	or treating people with ASD or a related condition or equivalent documented coursework 
66.24 	at the graduate level by an accredited university in ASD diagnostics, ASD developmental 
66.25 	and behavioral treatment strategies, and typical child development or an equivalent 
66.26 	combination of documented coursework or hours of experience; and
66.27 	(2) have or be at least one of the following:
66.28 	(i) a master's degree in behavioral health or child development or related fields including, 
66.29 	but not limited to, mental health, special education, social work, psychology, speech 
66.30 	pathology, or occupational therapy from an accredited college or university;
66.31 	(ii) a bachelor's degree in a behavioral health, child development, or related field 
66.32 	including, but not limited to, mental health, special education, social work, psychology, 
67.1 	speech pathology, or occupational therapy, from an accredited college or university, and 
67.2 	advanced certification in a treatment modality recognized by the department;
67.3 	(iii) a board-certified behavior analyst as defined by the Behavior Analyst Certification 
67.4 	Board or a qualified behavior analyst as defined by the Qualified Applied Behavior Analysis 
67.5 	Credentialing Board; or
67.6 	(iv) a board-certified assistant behavior analyst with 4,000 hours of supervised clinical 
67.7 	experience that meets all registration, supervision, and continuing education requirements 
67.8 	of the certification.
67.9 	(c) A level II treatment provider must be employed by an employee of an agency and 
67.10 	must be:
67.11 	(1) a person who has a bachelor's degree from an accredited college or university in a 
67.12 	behavioral or child development science or related field including, but not limited to, mental 
67.13 	health, special education, social work, psychology, speech pathology, or occupational 
67.14 	therapy; and meets at least one of the following:
67.15 	(i) has at least 1,000 hours of supervised clinical experience or training in examining or 
67.16 	treating people with ASD or a related condition or equivalent documented coursework at 
67.17 	the graduate level by an accredited university in ASD diagnostics, ASD developmental and 
67.18 	behavioral treatment strategies, and typical child development or a combination of 
67.19 	coursework or hours of experience;
67.20 	(ii) has certification as a board-certified assistant behavior analyst from the Behavior 
67.21 	Analyst Certification Board or a qualified autism service practitioner from the Qualified 
67.22 	Applied Behavior Analysis Credentialing Board;
67.23 	(iii) is a registered behavior technician as defined by the Behavior Analyst Certification 
67.24 	Board or an applied behavior analysis technician as defined by the Qualified Applied 
67.25 	Behavior Analysis Credentialing Board; or
67.26 	(iv) is certified in one of the other treatment modalities recognized by the department; 
67.27 	or
67.28 	(2) a person who has:
67.29 	(i) an associate's degree in a behavioral or child development science or related field 
67.30 	including, but not limited to, mental health, special education, social work, psychology, 
67.31 	speech pathology, or occupational therapy from an accredited college or university; and
68.1 	(ii) at least 2,000 hours of supervised clinical experience in delivering treatment to people 
68.2 	with ASD or a related condition. Hours worked as a mental health behavioral aide or level 
68.3 	III treatment provider may be included in the required hours of experience; or
68.4 	(3) a person who has at least 4,000 hours of supervised clinical experience in delivering 
68.5 	treatment to people with ASD or a related condition. Hours worked as a mental health 
68.6 	behavioral aide or level III treatment provider may be included in the required hours of 
68.7 	experience; or
68.8 	(4) a person who is a graduate student in a behavioral science, child development science, 
68.9 	or related field and is receiving clinical supervision by a QSP affiliated with an agency to 
68.10 	meet the clinical training requirements for experience and training with people with ASD 
68.11 	or a related condition; or
68.12 	(5) a person who is at least 18 years of age and who:
68.13 	(i) is fluent in a non-English language or is an individual certified by a Tribal Nation;
68.14 	(ii) completed the level III EIDBI training requirements; and
68.15 	(iii) receives observation and direction from a QSP or level I treatment provider at least 
68.16 	once a week until the person meets 1,000 hours of supervised clinical experience.
68.17 	(d) A level III treatment provider must be employed by an employee of an agency, have 
68.18 	completed the level III training requirement, be at least 18 years of age, and have at least 
68.19 	one of the following:
68.20 	(1) a high school diploma or commissioner of education-selected high school equivalency 
68.21 	certification;
68.22 	(2) fluency in a non-English language or Tribal Nation certification;
68.23 	(3) one year of experience as a primary personal care assistant, community health worker, 
68.24 	waiver service provider, or special education assistant to a person with ASD or a related 
68.25 	condition within the previous five years; or
68.26 	(4) completion of all required EIDBI training within six months of employment.

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

68.28 	Sec. 28. Minnesota Statutes 2024, section 256B.0949, subdivision 16, is amended to read:
68.29 		Subd. 16.Agency duties. (a) An agency delivering an EIDBI service under this section 
68.30 	must:
69.1 	(1) enroll as a medical assistance Minnesota health care program provider according to 
69.2 	Minnesota Rules, part 9505.0195, and section 256B.04, subdivision 21, and meet all 
69.3 	applicable provider standards and requirements;
69.4 	(2) demonstrate compliance with federal and state laws for EIDBI service;
69.5 	(3) verify and maintain records of a service provided to the person or the person's legal 
69.6 	representative as required under Minnesota Rules, parts 9505.2175 and 9505.2197;
69.7 	(4) demonstrate that while enrolled or seeking enrollment as a Minnesota health care 
69.8 	program provider the agency did not have a lead agency contract or provider agreement 
69.9 	discontinued because of a conviction of fraud; or did not have an owner, board member, or 
69.10 	manager fail a state or federal criminal background check or appear on the list of excluded 
69.11 	individuals or entities maintained by the federal Department of Human Services Office of 
69.12 	Inspector General;
69.13 	(5) have established business practices including written policies and procedures, internal 
69.14 	controls, and a system that demonstrates the organization's ability to deliver quality EIDBI 
69.15 	services;
69.16 	(6) have an office located in Minnesota or a border state;
69.17 	(7) conduct a criminal background check on an individual who has direct contact with 
69.18 	the person or the person's legal representative;
69.19 	(8) report maltreatment according to section 626.557 and chapter 260E;
69.20 	(9) comply with any data requests consistent with the Minnesota Government Data 
69.21 	Practices Act, sections 256B.064 and 256B.27;
69.22 	(10) provide training for all agency staff on the requirements and responsibilities listed 
69.23 	in the Maltreatment of Minors Act, chapter 260E, and the Vulnerable Adult Protection Act, 
69.24 	section 626.557, including mandated and voluntary reporting, nonretaliation, and the agency's 
69.25 	policy for all staff on how to report suspected abuse and neglect;
69.26 	(11) have a written policy to resolve issues collaboratively with the person and the 
69.27 	person's legal representative when possible. The policy must include a timeline for when 
69.28 	the person and the person's legal representative will be notified about issues that arise in 
69.29 	the provision of services;
69.30 	(12) provide the person's legal representative with prompt notification if the person is 
69.31 	injured while being served by the agency. An incident report must be completed by the 
70.1 	agency staff member in charge of the person. A copy of all incident and injury reports must 
70.2 	remain on file at the agency for at least five years from the report of the incident; and
70.3 	(13) before starting a service, provide the person or the person's legal representative a 
70.4 	description of the treatment modality that the person shall receive, including the staffing 
70.5 	certification levels and training of the staff who shall provide a treatment.;
70.6 	(14) provide clinical supervision by a qualified supervising professional for a minimum 
70.7 	of one hour of supervision for every ten hours of direct treatment per person that meets 
70.8 	clinical licensure requirements for quality supervision and effective intervention; and
70.9 	(15) provide clinical, in-person supervision sessions by a qualified supervising 
70.10 	professional at least once per month for intervention, observation, and direction.
70.11 	(b) When delivering the ITP, and annually thereafter, an agency must provide the person 
70.12 	or the person's legal representative with:
70.13 	(1) a written copy and a verbal explanation of the person's or person's legal 
70.14 	representative's rights and the agency's responsibilities;
70.15 	(2) documentation in the person's file the date that the person or the person's legal 
70.16 	representative received a copy and explanation of the person's or person's legal 
70.17 	representative's rights and the agency's responsibilities; and
70.18 	(3) reasonable accommodations to provide the information in another format or language 
70.19 	as needed to facilitate understanding of the person's or person's legal representative's rights 
70.20 	and the agency's responsibilities.

70.21 	Sec. 29. Minnesota Statutes 2024, section 256B.0949, subdivision 16a, is amended to 
70.22 	read:
70.23 		Subd. 16a.Background studies. An early intensive developmental and behavioral 
70.24 	intervention services agency must fulfill any background studies requirements under this 
70.25 	section by initiating a background study through the commissioner's NETStudy 2.0 system 
70.26 	as provided under sections 245C.03, subdivision 15, and 245C.10, subdivision 17.

70.27 	Sec. 30. Minnesota Statutes 2024, section 256B.0949, is amended by adding a subdivision 
70.28 	to read:
70.29 		Subd. 18.Provisional licensure. Beginning on January 1, 2026, the commissioner shall 
70.30 	begin issuing provisional licenses to enrolled EIDBI agencies pursuant to section 245A.142.

71.1 	Sec. 31. Minnesota Statutes 2024, section 256B.19, subdivision 1, is amended to read:
71.2 		Subdivision 1.Division of cost. (a) The state and county share of medical assistance 
71.3 	costs not paid by federal funds shall be as follows:
71.4 	(1) beginning January 1, 1992, 50 percent state funds and 50 percent county funds for 
71.5 	the cost of placement of severely emotionally disturbed children in regional treatment 
71.6 	centers;
71.7 	(2) beginning January 1, 2003, 80 percent state funds and 20 percent county funds for 
71.8 	the costs of nursing facility placements of persons with disabilities under the age of 65 that 
71.9 	have exceeded 90 days. This clause shall be subject to chapter 256G and shall not apply to 
71.10 	placements in facilities not certified to participate in medical assistance;
71.11 	(3) beginning July 1, 2004, 90 percent state funds and ten percent county funds for the 
71.12 	costs of placements that have exceeded 90 days in intermediate care facilities for persons 
71.13 	with developmental disabilities that have seven or more beds. This provision includes 
71.14 	pass-through payments made under section 256B.5015; and
71.15 	(4) beginning July 1, 2004, when state funds are used to pay for a nursing facility 
71.16 	placement due to the facility's status as an institution for mental diseases (IMD), the county 
71.17 	shall pay 20 percent of the nonfederal share of costs that have exceeded 90 days. This clause 
71.18 	is subject to chapter 256G.; and
71.19 	(5) beginning July 1, 2026, or upon federal approval, whichever is later, 98 percent state 
71.20 	funds and two percent county funds for the costs of services for all people receiving 
71.21 	community residential services, family residential services, customized living services, or 
71.22 	integrated community supports under section 256B.4914.
71.23 	(b) For counties that participate in a Medicaid demonstration project under sections 
71.24 	256B.69 and 256B.71, the division of the nonfederal share of medical assistance expenses 
71.25 	for payments made to prepaid health plans or for payments made to health maintenance 
71.26 	organizations in the form of prepaid capitation payments, this division of medical assistance 
71.27 	expenses shall be 95 percent by the state and five percent by the county of financial 
71.28 	responsibility.
71.29 	(c) In counties where prepaid health plans are under contract to the commissioner to 
71.30 	provide services to medical assistance recipients, the cost of court ordered treatment ordered 
71.31 	without consulting the prepaid health plan that does not include diagnostic evaluation, 
71.32 	recommendation, and referral for treatment by the prepaid health plan is the responsibility 
71.33 	of the county of financial responsibility.

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

72.2 	Sec. 32. Minnesota Statutes 2024, section 256B.4914, subdivision 3, is amended to read:
72.3 		Subd. 3.Applicable services. (a) Applicable services are those authorized under the 
72.4 	state's home and community-based services waivers under sections 256B.092 and 256B.49, 
72.5 	including the following, as defined in the federally approved home and community-based 
72.6 	services plan:
72.7 	(1) 24-hour customized living;
72.8 	(2) adult day services;
72.9 	(3) adult day services bath;
72.10 	(4) community residential services;
72.11 	(5) customized living;
72.12 	(6) day support services;
72.13 	(7) employment development services;
72.14 	(8) employment exploration services;
72.15 	(9) employment support services;
72.16 	(10) family residential services;
72.17 	(11) individualized home supports;
72.18 	(12) individualized home supports with family training;
72.19 	(13) individualized home supports with training;
72.20 	(14) integrated community supports;
72.21 	(15) life sharing;
72.22 	(16) effective until the effective date of clauses (17) and (18), night supervision;
72.23 	(17) effective January 1, 2026, or upon federal approval, whichever is later, awake night 
72.24 	supervision;
72.25 	(18) effective January 1, 2026, or upon federal approval, whichever is later, asleep night 
72.26 	supervision;
72.27 	(17) (19) positive support services;
72.28 	(18) (20) prevocational services;
73.1 	(19) (21) residential support services;
73.2 	(20) respite services;
73.3 	(21) (22) transportation services; and
73.4 	(22) (23) other services as approved by the federal government in the state home and 
73.5 	community-based services waiver plan.
73.6 	(b) Effective January 1, 2024, or upon federal approval, whichever is later, respite 
73.7 	services under paragraph (a), clause (20), are not an applicable service under this section.

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

73.9 	Sec. 33. Minnesota Statutes 2024, section 256B.4914, subdivision 5, is amended to read:
73.10 		Subd. 5.Base wage index; establishment and updates. (a) The base wage index is 
73.11 	established to determine staffing costs associated with providing services to individuals 
73.12 	receiving home and community-based services. For purposes of calculating the base wage, 
73.13 	Minnesota-specific wages taken from job descriptions and standard occupational 
73.14 	classification (SOC) codes from the Bureau of Labor Statistics as defined in the Occupational 
73.15 	Handbook must be used.
73.16 	(b) The commissioner shall update the base wage index in subdivision 5a, publish these 
73.17 	updated values, and load them into the rate management system as follows: required under 
73.18 	subdivision 5b.
73.19 	(1) on January 1, 2022, based on wage data by SOC from the Bureau of Labor Statistics 
73.20 	available as of December 31, 2019;
73.21 	(2) on January 1, 2024, based on wage data by SOC from the Bureau of Labor Statistics 
73.22 	published in March 2022; and
73.23 	(3) on January 1, 2026, and every two years thereafter, based on wage data by SOC from 
73.24 	the Bureau of Labor Statistics published in the spring approximately 21 months prior to the 
73.25 	scheduled update.

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

74.1 	Sec. 34. Minnesota Statutes 2024, section 256B.4914, subdivision 5a, is amended to read:
74.2 		Subd. 5a.Base wage index; calculations. The base wage index must be calculated as 
74.3 	follows:
74.4 	(1) for supervisory staff, 100 percent of the median wage for community and social 
74.5 	services specialist (SOC code 21-1099), with the exception of the supervisor of positive 
74.6 	supports professional, positive supports analyst, and positive supports specialist, which is 
74.7 	100 percent of the median wage for clinical counseling and school psychologist (SOC code 
74.8 	19-3031);
74.9 	(2) for registered nurse staff, 100 percent of the median wage for registered nurses (SOC 
74.10 	code 29-1141);
74.11 	(3) for licensed practical nurse staff, 100 percent of the median wage for licensed practical 
74.12 	nurses (SOC code 29-2061);
74.13 	(4) for residential asleep-overnight staff, the minimum wage in Minnesota for large 
74.14 	employers;
74.15 	(5) for residential direct care staff, the sum of:
74.16 	(i) 15 percent of the subtotal of 50 percent of the median wage for home health and 
74.17 	personal care aide (SOC code 31-1120); 30 percent of the median wage for nursing assistant 
74.18 	(SOC code 31-1131); and 20 percent of the median wage for social and human services 
74.19 	aide (SOC code 21-1093); and
74.20 	(ii) 85 percent of the subtotal of 40 percent of the median wage for home health and 
74.21 	personal care aide (SOC code 31-1120); 20 percent of the median wage for nursing assistant 
74.22 	(SOC code 31-1131); 20 percent of the median wage for psychiatric technician (SOC code 
74.23 	29-2053); and 20 percent of the median wage for social and human services aide (SOC code 
74.24 	21-1093);
74.25 	(6) for adult day services staff, 70 percent of the median wage for nursing assistant (SOC 
74.26 	code 31-1131); and 30 percent of the median wage for home health and personal care aide 
74.27 	(SOC code 31-1120);
74.28 	(7) for day support services staff and prevocational services staff, 20 percent of the 
74.29 	median wage for nursing assistant (SOC code 31-1131); 20 percent of the median wage for 
74.30 	psychiatric technician (SOC code 29-2053); and 60 percent of the median wage for social 
74.31 	and human services aide (SOC code 21-1093);
75.1 	(8) for positive supports analyst staff, 100 percent of the median wage for substance 
75.2 	abuse, behavioral disorder, and mental health counselor (SOC code 21-1018);
75.3 	(9) for positive supports professional staff, 100 percent of the median wage for clinical 
75.4 	counseling and school psychologist (SOC code 19-3031);
75.5 	(10) for positive supports specialist staff, 100 percent of the median wage for psychiatric 
75.6 	technicians (SOC code 29-2053);
75.7 	(11) for individualized home supports with family training staff, 20 percent of the median 
75.8 	wage for nursing aide (SOC code 31-1131); 30 percent of the median wage for community 
75.9 	social service specialist (SOC code 21-1099); 40 percent of the median wage for social and 
75.10 	human services aide (SOC code 21-1093); and ten percent of the median wage for psychiatric 
75.11 	technician (SOC code 29-2053);
75.12 	(12) for individualized home supports with training services staff, 40 percent of the 
75.13 	median wage for community social service specialist (SOC code 21-1099); 50 percent of 
75.14 	the median wage for social and human services aide (SOC code 21-1093); and ten percent 
75.15 	of the median wage for psychiatric technician (SOC code 29-2053);
75.16 	(13) for employment support services staff, 50 percent of the median wage for 
75.17 	rehabilitation counselor (SOC code 21-1015); and 50 percent of the median wage for 
75.18 	community and social services specialist (SOC code 21-1099);
75.19 	(14) for employment exploration services staff, 50 percent of the median wage for 
75.20 	education, guidance, school, and vocational counselor (SOC code 21-1012); and 50 percent 
75.21 	of the median wage for community and social services specialist (SOC code 21-1099);
75.22 	(15) for employment development services staff, 50 percent of the median wage for 
75.23 	education, guidance, school, and vocational counselors (SOC code 21-1012); and 50 percent 
75.24 	of the median wage for community and social services specialist (SOC code 21-1099);
75.25 	(16) for individualized home support without training staff, 50 percent of the median 
75.26 	wage for home health and personal care aide (SOC code 31-1120); and 50 percent of the 
75.27 	median wage for nursing assistant (SOC code 31-1131); and
75.28 	(17) effective until the effective date of clauses (18) and (19), for night supervision staff, 
75.29 	40 percent of the median wage for home health and personal care aide (SOC code 31-1120); 
75.30 	20 percent of the median wage for nursing assistant (SOC code 31-1131); 20 percent of the 
75.31 	median wage for psychiatric technician (SOC code 29-2053); and 20 percent of the median 
75.32 	wage for social and human services aide (SOC code 21-1093).;
76.1 	(18) effective January 1, 2026, or upon federal approval, whichever is later, for awake 
76.2 	night supervision staff, 40 percent of the median wage for home health and personal care 
76.3 	aide (SOC code 31-1120); 20 percent of the median wage for nursing assistant (SOC code 
76.4 	31-1131); 20 percent the median wage for psychiatric technician (SOC code 29-2053); and 
76.5 	20 percent of the median wage for social and human services aid (SOC code 21-1093); and
76.6 	(19) effective January 1, 2026, or upon federal approval, whichever is later, for asleep 
76.7 	night supervision staff, the minimum wage in Minnesota for large employers.

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

76.9 	Sec. 35. Minnesota Statutes 2024, section 256B.4914, subdivision 5b, is amended to read:
76.10 		Subd. 5b.Standard component value adjustments. The commissioner shall update
76.11 	the base wage index under subdivision 5a; the client and programming support, transportation, 
76.12 	and program facility cost component values as required in subdivisions 6 to 9; and the rates 
76.13 	identified in subdivision 19 for changes in the Consumer Price Index. The commissioner 
76.14 	shall adjust these values higher or lower, publish these updated values, and load them into 
76.15 	the rate management system as follows:
76.16 	(1) on January 1, 2022, by the percentage change in the CPI-U from the date of the 
76.17 	previous update to the data available on December 31, 2019;
76.18 	(2) on January 1, 2024, by the percentage change in the CPI-U from the date of the 
76.19 	previous update to the data available as of December 31, 2022; and
76.20 	(3) on January 1, 2026, and every two years thereafter, by the percentage change in the 
76.21 	CPI-U from the date of the previous update to the data available 24 months and one day 
76.22 	prior to the scheduled update.

76.23 	EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval, 
76.24 	whichever is later. The commissioner shall notify the revisor of statutes when federal 
76.25 	approval is obtained.

76.26 	Sec. 36. Minnesota Statutes 2024, section 256B.4914, subdivision 6a, is amended to read:
76.27 		Subd. 6a.Community residential services; component values and calculation of 
76.28 	payment rates. (a) Component values for community residential services are:
76.29 	(1) competitive workforce factor: 6.7 percent;
76.30 	(i) 6.7 percent. This item expires upon the effective date of item (ii);
77.1 	(ii) effective January 1, 2026, or upon federal approval, whichever is later, 9.71 percent. 
77.2 	This item expires upon the effective date of item (iii); and
77.3 	(iii) effective January 1, 2028, or upon federal approval, whichever is later, 21.79 percent;
77.4 	(2) supervisory span of control ratio: 11 percent;
77.5 	(3) employee vacation, sick, and training allowance ratio: 8.71 percent;
77.6 	(4) employee-related cost ratio: 23.6 percent;
77.7 	(5) general administrative support ratio: 13.25 percent;
77.8 	(6) program-related expense ratio: 1.3 percent; and
77.9 	(7) absence and utilization factor ratio: 3.9 percent.
77.10 	(b) Payments for community residential services must be calculated as follows:
77.11 	(1) determine the number of shared direct staffing and individual direct staffing hours 
77.12 	to meet a recipient's needs provided on site or through monitoring technology;
77.13 	(2) determine the appropriate hourly staff wage rates derived by the commissioner as 
77.14 	provided in subdivisions 5 and 5a;
77.15 	(3) except for subdivision 5a, clauses (1) to (4), multiply the result of clause (2) by the 
77.16 	product of one plus the competitive workforce factor;
77.17 	(4) for a recipient requiring customization for deaf and hard-of-hearing language 
77.18 	accessibility under subdivision 12, add the customization rate provided in subdivision 12 
77.19 	to the result of clause (3);
77.20 	(5) multiply the number of shared direct staffing and individual direct staffing hours 
77.21 	provided on site or through monitoring technology and nursing hours by the appropriate 
77.22 	staff wages;
77.23 	(6) multiply the number of shared direct staffing and individual direct staffing hours 
77.24 	provided on site or through monitoring technology and nursing hours by the product of the 
77.25 	supervision span of control ratio and the appropriate supervisory staff wage in subdivision 
77.26 	5a, clause (1);
77.27 	(7) combine the results of clauses (5) and (6), excluding any shared direct staffing and 
77.28 	individual direct staffing hours provided through monitoring technology, and multiply the 
77.29 	result by one plus the employee vacation, sick, and training allowance ratio. This is defined 
77.30 	as the direct staffing cost;
78.1 	(8) for employee-related expenses, multiply the direct staffing cost, excluding any shared 
78.2 	direct staffing and individual hours provided through monitoring technology, by one plus 
78.3 	the employee-related cost ratio;
78.4 	(9) for client programming and supports, add $2,260.21 divided by 365. The 
78.5 	commissioner shall update the amount in this clause as specified in subdivision 5b;
78.6 	(10) for transportation, if provided, add $1,742.62 divided by 365, or $3,111.81 divided 
78.7 	by 365 if customized for adapted transport, based on the resident with the highest assessed 
78.8 	need. The commissioner shall update the amounts in this clause as specified in subdivision 
78.9 	5b;
78.10 	(11) subtotal clauses (8) to (10) and the direct staffing cost of any shared direct staffing 
78.11 	and individual direct staffing hours provided through monitoring technology that was 
78.12 	excluded in clause (8);
78.13 	(12) sum the standard general administrative support ratio, the program-related expense 
78.14 	ratio, and the absence and utilization factor ratio;
78.15 	(13) divide the result of clause (11) by one minus the result of clause (12). This is the 
78.16 	total payment amount; and
78.17 	(14) adjust the result of clause (13) by a factor to be determined by the commissioner 
78.18 	to adjust for regional differences in the cost of providing services.

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

78.20 	Sec. 37. Minnesota Statutes 2024, section 256B.4914, subdivision 6b, is amended to read:
78.21 		Subd. 6b.Family residential services; component values and calculation of payment 
78.22 	rates. (a) Component values for family residential services are:
78.23 	(1) competitive workforce factor: 6.7 percent;
78.24 	(i) 6.7 percent. This item expires upon the effective date of item (ii);
78.25 	(ii) effective January 1, 2026, or upon federal approval, whichever is later, 9.71 percent. 
78.26 	This item expires upon the effective date of item (iii); and
78.27 	(iii) effective January 1, 2028, or upon federal approval, whichever is later, 21.79 percent;
78.28 	(2) supervisory span of control ratio: 11 percent;
78.29 	(3) employee vacation, sick, and training allowance ratio: 8.71 percent;
78.30 	(4) employee-related cost ratio: 23.6 percent;
79.1 	(5) general administrative support ratio: 3.3 percent;
79.2 	(6) program-related expense ratio: 1.3 percent; and
79.3 	(7) absence factor: 1.7 percent.
79.4 	(b) Payments for family residential services must be calculated as follows:
79.5 	(1) determine the number of shared direct staffing and individual direct staffing hours 
79.6 	to meet a recipient's needs provided on site or through monitoring technology;
79.7 	(2) determine the appropriate hourly staff wage rates derived by the commissioner as 
79.8 	provided in subdivisions 5 and 5a;
79.9 	(3) except for subdivision 5a, clauses (1) to (4), multiply the result of clause (2) by the 
79.10 	product of one plus the competitive workforce factor;
79.11 	(4) for a recipient requiring customization for deaf and hard-of-hearing language 
79.12 	accessibility under subdivision 12, add the customization rate provided in subdivision 12 
79.13 	to the result of clause (3);
79.14 	(5) multiply the number of shared direct staffing and individual direct staffing hours 
79.15 	provided on site or through monitoring technology and nursing hours by the appropriate 
79.16 	staff wages;
79.17 	(6) multiply the number of shared direct staffing and individual direct staffing hours 
79.18 	provided on site or through monitoring technology and nursing hours by the product of the 
79.19 	supervisory span of control ratio and the appropriate supervisory staff wage in subdivision 
79.20 	5a, clause (1);
79.21 	(7) combine the results of clauses (5) and (6), excluding any shared direct staffing and 
79.22 	individual direct staffing hours provided through monitoring technology, and multiply the 
79.23 	result by one plus the employee vacation, sick, and training allowance ratio. This is defined 
79.24 	as the direct staffing cost;
79.25 	(8) for employee-related expenses, multiply the direct staffing cost, excluding any shared 
79.26 	and individual direct staffing hours provided through monitoring technology, by one plus 
79.27 	the employee-related cost ratio;
79.28 	(9) for client programming and supports, add $2,260.21 divided by 365. The 
79.29 	commissioner shall update the amount in this clause as specified in subdivision 5b;
79.30 	(10) for transportation, if provided, add $1,742.62 divided by 365, or $3,111.81 divided 
79.31 	by 365 if customized for adapted transport, based on the resident with the highest assessed 
80.1 	need. The commissioner shall update the amounts in this clause as specified in subdivision 
80.2 	5b;
80.3 	(11) subtotal clauses (8) to (10) and the direct staffing cost of any shared direct staffing 
80.4 	and individual direct staffing hours provided through monitoring technology that was 
80.5 	excluded in clause (8);
80.6 	(12) sum the standard general administrative support ratio, the program-related expense 
80.7 	ratio, and the absence and utilization factor ratio;
80.8 	(13) divide the result of clause (11) by one minus the result of clause (12). This is the 
80.9 	total payment rate; and
80.10 	(14) adjust the result of clause (13) by a factor to be determined by the commissioner 
80.11 	to adjust for regional differences in the cost of providing services.

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

80.13 	Sec. 38. Minnesota Statutes 2024, section 256B.4914, subdivision 6c, is amended to read:
80.14 		Subd. 6c.Integrated community supports; component values and calculation of 
80.15 	payment rates.  (a) Component values for integrated community supports are:
80.16 	(1) competitive workforce factor: 6.7 percent;
80.17 	(i) 6.7 percent. This item expires upon the effective date of item (ii);
80.18 	(ii) effective January 1, 2026, or upon federal approval, whichever is later, 9.71 percent. 
80.19 	This item expires upon the effective date of item (iii); and
80.20 	(iii) effective January 1, 2028, or upon federal approval, whichever is later, 21.79 percent;
80.21 	(2) supervisory span of control ratio: 11 percent;
80.22 	(3) employee vacation, sick, and training allowance ratio: 8.71 percent;
80.23 	(4) employee-related cost ratio: 23.6 percent;
80.24 	(5) general administrative support ratio: 13.25 percent;
80.25 	(6) program-related expense ratio: 1.3 percent; and
80.26 	(7) absence and utilization factor ratio: 3.9 percent.
80.27 	(b) Payments for integrated community supports must be calculated as follows:
80.28 	(1) determine the number of shared direct staffing and individual direct staffing hours 
80.29 	to meet a recipient's needs. The base shared direct staffing hours must be eight hours divided 
81.1 	by the number of people receiving support in the integrated community support setting, and 
81.2 	the individual direct staffing hours must be the average number of direct support hours 
81.3 	provided directly to the service recipient;
81.4 	(2) determine the appropriate hourly staff wage rates derived by the commissioner as 
81.5 	provided in subdivisions 5 and 5a;
81.6 	(3) except for subdivision 5a, clauses (1) to (4), multiply the result of clause (2) by the 
81.7 	product of one plus the competitive workforce factor;
81.8 	(4) for a recipient requiring customization for deaf and hard-of-hearing language 
81.9 	accessibility under subdivision 12, add the customization rate provided in subdivision 12 
81.10 	to the result of clause (3);
81.11 	(5) multiply the number of shared direct staffing and individual direct staffing hours in 
81.12 	clause (1) by the appropriate staff wages;
81.13 	(6) multiply the number of shared direct staffing and individual direct staffing hours in 
81.14 	clause (1) by the product of the supervisory span of control ratio and the appropriate 
81.15 	supervisory staff wage in subdivision 5a, clause (1);
81.16 	(7) combine the results of clauses (5) and (6) and multiply the result by one plus the 
81.17 	employee vacation, sick, and training allowance ratio. This is defined as the direct staffing 
81.18 	cost;
81.19 	(8) for employee-related expenses, multiply the direct staffing cost by one plus the 
81.20 	employee-related cost ratio;
81.21 	(9) for client programming and supports, add $2,260.21 divided by 365. The 
81.22 	commissioner shall update the amount in this clause as specified in subdivision 5b;
81.23 	(10) add the results of clauses (8) and (9);
81.24 	(11) add the standard general administrative support ratio, the program-related expense 
81.25 	ratio, and the absence and utilization factor ratio;
81.26 	(12) divide the result of clause (10) by one minus the result of clause (11). This is the 
81.27 	total payment amount; and
81.28 	(13) adjust the result of clause (12) by a factor to be determined by the commissioner 
81.29 	to adjust for regional differences in the cost of providing services.

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

82.1 	Sec. 39. Minnesota Statutes 2024, section 256B.4914, subdivision 7a, is amended to read:
82.2 		Subd. 7a.Adult day services; component values and calculation of payment rates. (a) 
82.3 	Component values for adult day services are:
82.4 	(1) competitive workforce factor: 6.7 percent;
82.5 	(i) 6.7 percent. This item expires upon the effective date of item (ii);
82.6 	(ii) effective January 1, 2026, or upon federal approval, whichever is later, 9.71 percent. 
82.7 	This item expires upon the effective date of item (iii); and
82.8 	(iii) effective January 1, 2028, or upon federal approval, whichever is later, 21.79 percent;
82.9 	(2) supervisory span of control ratio: 11 percent;
82.10 	(3) employee vacation, sick, and training allowance ratio: 8.71 percent;
82.11 	(4) employee-related cost ratio: 23.6 percent;
82.12 	(5) program plan support ratio: 5.6 percent;
82.13 	(6) client programming and support ratio: 7.4 percent, updated as specified in subdivision 
82.14 	5b;
82.15 	(7) general administrative support ratio: 13.25 percent;
82.16 	(8) program-related expense ratio: 1.8 percent; and
82.17 	(9) absence and utilization factor ratio: 9.4 3.9 percent.
82.18 	(b) A unit of service for adult day services is either a day or 15 minutes. A day unit of 
82.19 	service is six or more hours of time spent providing direct service.
82.20 	(c) Payments for adult day services must be calculated as follows:
82.21 	(1) determine the number of units of service and the staffing ratio to meet a recipient's 
82.22 	needs;
82.23 	(2) determine the appropriate hourly staff wage rates derived by the commissioner as 
82.24 	provided in subdivisions 5 and 5a;
82.25 	(3) except for subdivision 5a, clauses (1) to (4), multiply the result of clause (2) by the 
82.26 	product of one plus the competitive workforce factor;
82.27 	(4) for a recipient requiring customization for deaf and hard-of-hearing language 
82.28 	accessibility under subdivision 12, add the customization rate provided in subdivision 12 
82.29 	to the result of clause (3);
83.1 	(5) multiply the number of day program direct staffing hours and nursing hours by the 
83.2 	appropriate staff wage;
83.3 	(6) multiply the number of day program direct staffing hours by the product of the 
83.4 	supervisory span of control ratio and the appropriate supervisory staff wage in subdivision 
83.5 	5a, clause (1);
83.6 	(7) combine the results of clauses (5) and (6), and multiply the result by one plus the 
83.7 	employee vacation, sick, and training allowance ratio. This is defined as the direct staffing 
83.8 	rate;
83.9 	(8) for program plan support, multiply the result of clause (7) by one plus the program 
83.10 	plan support ratio;
83.11 	(9) for employee-related expenses, multiply the result of clause (8) by one plus the 
83.12 	employee-related cost ratio;
83.13 	(10) for client programming and supports, multiply the result of clause (9) by one plus 
83.14 	the client programming and support ratio;
83.15 	(11) for program facility costs, add $19.30 per week with consideration of staffing ratios 
83.16 	to meet individual needs, updated as specified in subdivision 5b;
83.17 	(12) for adult day bath services, add $7.01 per 15 minute unit;
83.18 	(13) this is the subtotal rate;
83.19 	(14) sum the standard general administrative rate support ratio, the program-related 
83.20 	expense ratio, and the absence and utilization factor ratio;
83.21 	(15) divide the result of clause (13) by one minus the result of clause (14). This is the 
83.22 	total payment amount; and
83.23 	(16) adjust the result of clause (15) by a factor to be determined by the commissioner 
83.24 	to adjust for regional differences in the cost of providing services.

83.25 	EFFECTIVE DATE. The amendments to paragraph (a), clause (1), are effective the 
83.26 	day following final enactment. The amendment to paragraph (a), clause (9), is effective 
83.27 	January 1, 2026, or upon federal approval, whichever is later. The commissioner of human 
83.28 	services shall notify the revisor of statutes when federal approval is obtained.

83.29 	Sec. 40. Minnesota Statutes 2024, section 256B.4914, subdivision 7b, is amended to read:
83.30 		Subd. 7b.Day support services; component values and calculation of payment 
83.31 	rates. (a) Component values for day support services are:
84.1 	(1) competitive workforce factor: 6.7 percent;
84.2 	(i) 6.7 percent. This item expires upon the effective date of item (ii);
84.3 	(ii) effective January 1, 2026, or upon federal approval, whichever is later, 9.71 percent. 
84.4 	This item expires upon the effective date of item (iii); and
84.5 	(iii) effective January 1, 2028, or upon federal approval, whichever is later, 21.79 percent;
84.6 	(2) supervisory span of control ratio: 11 percent;
84.7 	(3) employee vacation, sick, and training allowance ratio: 8.71 percent;
84.8 	(4) employee-related cost ratio: 23.6 percent;
84.9 	(5) program plan support ratio: 5.6 percent;
84.10 	(6) client programming and support ratio: 10.37 percent, updated as specified in 
84.11 	subdivision 5b;
84.12 	(7) general administrative support ratio: 13.25 percent;
84.13 	(8) program-related expense ratio: 1.8 percent; and
84.14 	(9) absence and utilization factor ratio: 9.4 3.9 percent.
84.15 	(b) A unit of service for day support services is 15 minutes.
84.16 	(c) Payments for day support services must be calculated as follows:
84.17 	(1) determine the number of units of service and the staffing ratio to meet a recipient's 
84.18 	needs;
84.19 	(2) determine the appropriate hourly staff wage rates derived by the commissioner as 
84.20 	provided in subdivisions 5 and 5a;
84.21 	(3) except for subdivision 5a, clauses (1) to (4), multiply the result of clause (2) by the 
84.22 	product of one plus the competitive workforce factor;
84.23 	(4) for a recipient requiring customization for deaf and hard-of-hearing language 
84.24 	accessibility under subdivision 12, add the customization rate provided in subdivision 12 
84.25 	to the result of clause (3);
84.26 	(5) multiply the number of day program direct staffing hours and nursing hours by the 
84.27 	appropriate staff wage;
84.28 	(6) multiply the number of day program direct staffing hours by the product of the 
84.29 	supervisory span of control ratio and the appropriate supervisory staff wage in subdivision 
84.30 	5a, clause (1);
85.1 	(7) combine the results of clauses (5) and (6), and multiply the result by one plus the 
85.2 	employee vacation, sick, and training allowance ratio. This is defined as the direct staffing 
85.3 	rate;
85.4 	(8) for program plan support, multiply the result of clause (7) by one plus the program 
85.5 	plan support ratio;
85.6 	(9) for employee-related expenses, multiply the result of clause (8) by one plus the 
85.7 	employee-related cost ratio;
85.8 	(10) for client programming and supports, multiply the result of clause (9) by one plus 
85.9 	the client programming and support ratio;
85.10 	(11) for program facility costs, add $19.30 per week with consideration of staffing ratios 
85.11 	to meet individual needs, updated as specified in subdivision 5b;
85.12 	(12) this is the subtotal rate;
85.13 	(13) sum the standard general administrative rate support ratio, the program-related 
85.14 	expense ratio, and the absence and utilization factor ratio;
85.15 	(14) divide the result of clause (12) by one minus the result of clause (13). This is the 
85.16 	total payment amount; and
85.17 	(15) adjust the result of clause (14) by a factor to be determined by the commissioner 
85.18 	to adjust for regional differences in the cost of providing services.

85.19 	EFFECTIVE DATE. The amendments to paragraph (a), clause (1), are effective the 
85.20 	day following final enactment. The amendment to paragraph (a), clause (9), is effective 
85.21 	January 1, 2026, or upon federal approval, whichever is later. The commissioner of human 
85.22 	services shall notify the revisor of statutes when federal approval is obtained.

85.23 	Sec. 41. Minnesota Statutes 2024, section 256B.4914, subdivision 7c, is amended to read:
85.24 		Subd. 7c.Prevocational services; component values and calculation of payment 
85.25 	rates. (a) Component values for prevocational services are:
85.26 	(1) competitive workforce factor: 6.7 percent;
85.27 	(i) 6.7 percent. This item expires upon the effective date of item (ii);
85.28 	(ii) effective January 1, 2026, or upon federal approval, whichever is later, 9.71 percent. 
85.29 	This item expires upon the effective date of item (iii); and
85.30 	(iii) effective January 1, 2028, or upon federal approval, whichever is later, 21.79 percent;
86.1 	(2) supervisory span of control ratio: 11 percent;
86.2 	(3) employee vacation, sick, and training allowance ratio: 8.71 percent;
86.3 	(4) employee-related cost ratio: 23.6 percent;
86.4 	(5) program plan support ratio: 5.6 percent;
86.5 	(6) client programming and support ratio: 10.37 percent, updated as specified in 
86.6 	subdivision 5b;
86.7 	(7) general administrative support ratio: 13.25 percent;
86.8 	(8) program-related expense ratio: 1.8 percent; and
86.9 	(9) absence and utilization factor ratio: 9.4 3.9 percent.
86.10 	(b) A unit of service for prevocational services is either a day or 15 minutes. A day unit 
86.11 	of service is six or more hours of time spent providing direct service.
86.12 	(c) Payments for prevocational services must be calculated as follows:
86.13 	(1) determine the number of units of service and the staffing ratio to meet a recipient's 
86.14 	needs;
86.15 	(2) determine the appropriate hourly staff wage rates derived by the commissioner as 
86.16 	provided in subdivisions 5 and 5a;
86.17 	(3) except for subdivision 5a, clauses (1) to (4), multiply the result of clause (2) by the 
86.18 	product of one plus the competitive workforce factor;
86.19 	(4) for a recipient requiring customization for deaf and hard-of-hearing language 
86.20 	accessibility under subdivision 12, add the customization rate provided in subdivision 12 
86.21 	to the result of clause (3);
86.22 	(5) multiply the number of day program direct staffing hours and nursing hours by the 
86.23 	appropriate staff wage;
86.24 	(6) multiply the number of day program direct staffing hours by the product of the 
86.25 	supervisory span of control ratio and the appropriate supervisory staff wage in subdivision 
86.26 	5a, clause (1);
86.27 	(7) combine the results of clauses (5) and (6), and multiply the result by one plus the 
86.28 	employee vacation, sick, and training allowance ratio. This is defined as the direct staffing 
86.29 	rate;
87.1 	(8) for program plan support, multiply the result of clause (7) by one plus the program 
87.2 	plan support ratio;
87.3 	(9) for employee-related expenses, multiply the result of clause (8) by one plus the 
87.4 	employee-related cost ratio;
87.5 	(10) for client programming and supports, multiply the result of clause (9) by one plus 
87.6 	the client programming and support ratio;
87.7 	(11) for program facility costs, add $19.30 per week with consideration of staffing ratios 
87.8 	to meet individual needs, updated as specified in subdivision 5b;
87.9 	(12) this is the subtotal rate;
87.10 	(13) sum the standard general administrative rate support ratio, the program-related 
87.11 	expense ratio, and the absence and utilization factor ratio;
87.12 	(14) divide the result of clause (12) by one minus the result of clause (13). This is the 
87.13 	total payment amount; and
87.14 	(15) adjust the result of clause (14) by a factor to be determined by the commissioner 
87.15 	to adjust for regional differences in the cost of providing services.

87.16 	EFFECTIVE DATE. The amendments to paragraph (a), clause (1), are effective the 
87.17 	day following final enactment. The amendment to paragraph (a), clause (9), is effective 
87.18 	January 1, 2026, or upon federal approval, whichever is later. The commissioner of human 
87.19 	services shall notify the revisor of statutes when federal approval is obtained.

87.20 	Sec. 42. Minnesota Statutes 2024, section 256B.4914, subdivision 8, is amended to read:
87.21 		Subd. 8. Unit-based services with programming; component values and calculation 
87.22 	of payment rates. (a) For the purpose of this section, unit-based services with programming 
87.23 	include employment exploration services, employment development services, employment 
87.24 	support services, individualized home supports with family training, individualized home 
87.25 	supports with training, and positive support services provided to an individual outside of 
87.26 	any service plan for a day program or residential support service.
87.27 	(b) Component values for unit-based services with programming are:
87.28 	(1) competitive workforce factor: 6.7 percent;
87.29 	(i) 6.7 percent. This item expires upon the effective date of item (ii);
87.30 	(ii) effective January 1, 2026, or upon federal approval, whichever is later, 9.71 percent. 
87.31 	This item expires upon the effective date of item (iii); and
88.1 	(iii) effective January 1, 2028, or upon federal approval, whichever is later, 21.79 percent;
88.2 	(2) supervisory span of control ratio: 11 percent;
88.3 	(3) employee vacation, sick, and training allowance ratio: 8.71 percent;
88.4 	(4) employee-related cost ratio: 23.6 percent;
88.5 	(5) program plan support ratio: 15.5 percent;
88.6 	(6) client programming and support ratio: 4.7 percent, updated as specified in subdivision 
88.7 	5b;
88.8 	(7) general administrative support ratio: 13.25 percent;
88.9 	(8) program-related expense ratio: 6.1 percent; and
88.10 	(9) absence and utilization factor ratio: 3.9 percent.
88.11 	(c) A unit of service for unit-based services with programming is 15 minutes.
88.12 	(d) Payments for unit-based services with programming must be calculated as follows, 
88.13 	unless the services are reimbursed separately as part of a residential support services or day 
88.14 	program payment rate:
88.15 	(1) determine the number of units of service to meet a recipient's needs;
88.16 	(2) determine the appropriate hourly staff wage rates derived by the commissioner as 
88.17 	provided in subdivisions 5 and 5a;
88.18 	(3) except for subdivision 5a, clauses (1) to (4), multiply the result of clause (2) by the 
88.19 	product of one plus the competitive workforce factor;
88.20 	(4) for a recipient requiring customization for deaf and hard-of-hearing language 
88.21 	accessibility under subdivision 12, add the customization rate provided in subdivision 12 
88.22 	to the result of clause (3);
88.23 	(5) multiply the number of direct staffing hours by the appropriate staff wage;
88.24 	(6) multiply the number of direct staffing hours by the product of the supervisory span 
88.25 	of control ratio and the appropriate supervisory staff wage in subdivision 5a, clause (1);
88.26 	(7) combine the results of clauses (5) and (6), and multiply the result by one plus the 
88.27 	employee vacation, sick, and training allowance ratio. This is defined as the direct staffing 
88.28 	rate;
88.29 	(8) for program plan support, multiply the result of clause (7) by one plus the program 
88.30 	plan support ratio;
89.1 	(9) for employee-related expenses, multiply the result of clause (8) by one plus the 
89.2 	employee-related cost ratio;
89.3 	(10) for client programming and supports, multiply the result of clause (9) by one plus 
89.4 	the client programming and support ratio;
89.5 	(11) this is the subtotal rate;
89.6 	(12) sum the standard general administrative support ratio, the program-related expense 
89.7 	ratio, and the absence and utilization factor ratio;
89.8 	(13) divide the result of clause (11) by one minus the result of clause (12). This is the 
89.9 	total payment amount;
89.10 	(14) for services provided in a shared manner, divide the total payment in clause (13) 
89.11 	as follows:
89.12 	(i) for employment exploration services, divide by the number of service recipients, not 
89.13 	to exceed five;
89.14 	(ii) for employment support services, divide by the number of service recipients, not to 
89.15 	exceed six;
89.16 	(iii) for individualized home supports with training and individualized home supports 
89.17 	with family training, divide by the number of service recipients, not to exceed three; and
89.18 	(iv) for night supervision, divide by the number of service recipients, not to exceed two; 
89.19 	and
89.20 	(15) adjust the result of clause (14) by a factor to be determined by the commissioner 
89.21 	to adjust for regional differences in the cost of providing services.
89.22 	(e) Effective January 1, 2026, or upon federal approval, whichever is later, the 
89.23 	commissioner must bill individualized home supports with training and individualized home 
89.24 	supports with family training at a maximum of eight hours per day.

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

89.26 	Sec. 43. Minnesota Statutes 2024, section 256B.4914, subdivision 9, is amended to read:
89.27 		Subd. 9. Unit-based services without programming; component values and 
89.28 	calculation of payment rates. (a) For the purposes of this section, unit-based services 
89.29 	without programming include individualized home supports without training and night 
89.30 	supervision provided to an individual outside of any service plan for a day program or 
90.1 	residential support service. Unit-based services without programming do not include respite.
90.2 	This paragraph expires upon the effective date of paragraph (b).
90.3 	(b) Effective January 1, 2026, or upon federal approval, whichever is later, for the 
90.4 	purposes of this section, unit-based services without programming include individualized 
90.5 	home supports without training, awake night supervision, and asleep night supervision 
90.6 	provided to an individual outside of any service plan for a day program or residential support 
90.7 	service.
90.8 	(b) (c) Component values for unit-based services without programming are:
90.9 	(1) competitive workforce factor: 6.7 percent;
90.10 	(i) 6.7 percent. This item expires upon the effective date of item (ii);
90.11 	(ii) effective January 1, 2026, or upon federal approval, whichever is later, 9.71 percent. 
90.12 	This item expires upon the effective date of item (iii); and
90.13 	(iii) effective January 1, 2028, or upon federal approval, whichever is later, 21.79 percent;
90.14 	(2) supervisory span of control ratio: 11 percent;
90.15 	(3) employee vacation, sick, and training allowance ratio: 8.71 percent;
90.16 	(4) employee-related cost ratio: 23.6 percent;
90.17 	(5) program plan support ratio: 7.0 percent;
90.18 	(6) client programming and support ratio: 2.3 percent, updated as specified in subdivision 
90.19 	5b;
90.20 	(7) general administrative support ratio: 13.25 percent;
90.21 	(8) program-related expense ratio: 2.9 percent; and
90.22 	(9) absence and utilization factor ratio: 3.9 percent.
90.23 	(c) (d) A unit of service for unit-based services without programming is 15 minutes.
90.24 	(d) (e) Payments for unit-based services without programming must be calculated as 
90.25 	follows unless the services are reimbursed separately as part of a residential support services 
90.26 	or day program payment rate:
90.27 	(1) determine the number of units of service to meet a recipient's needs;
90.28 	(2) determine the appropriate hourly staff wage rates derived by the commissioner as 
90.29 	provided in subdivisions 5 to 5a;
91.1 	(3) except for subdivision 5a, clauses (1) to (4), multiply the result of clause (2) by the 
91.2 	product of one plus the competitive workforce factor;
91.3 	(4) for a recipient requiring customization for deaf and hard-of-hearing language 
91.4 	accessibility under subdivision 12, add the customization rate provided in subdivision 12 
91.5 	to the result of clause (3);
91.6 	(5) multiply the number of direct staffing hours by the appropriate staff wage;
91.7 	(6) multiply the number of direct staffing hours by the product of the supervisory span 
91.8 	of control ratio and the appropriate supervisory staff wage in subdivision 5a, clause (1);
91.9 	(7) combine the results of clauses (5) and (6), and multiply the result by one plus the 
91.10 	employee vacation, sick, and training allowance ratio. This is defined as the direct staffing 
91.11 	rate;
91.12 	(8) for program plan support, multiply the result of clause (7) by one plus the program 
91.13 	plan support ratio;
91.14 	(9) for employee-related expenses, multiply the result of clause (8) by one plus the 
91.15 	employee-related cost ratio;
91.16 	(10) for client programming and supports, multiply the result of clause (9) by one plus 
91.17 	the client programming and support ratio;
91.18 	(11) this is the subtotal rate;
91.19 	(12) sum the standard general administrative support ratio, the program-related expense 
91.20 	ratio, and the absence and utilization factor ratio;
91.21 	(13) divide the result of clause (11) by one minus the result of clause (12). This is the 
91.22 	total payment amount;
91.23 	(14) for individualized home supports without training provided in a shared manner, 
91.24 	divide the total payment amount in clause (13) by the number of service recipients, not to 
91.25 	exceed three; and
91.26 	(15) adjust the result of clause (14) by a factor to be determined by the commissioner 
91.27 	to adjust for regional differences in the cost of providing services.

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

92.1 	Sec. 44. Minnesota Statutes 2024, section 256B.4914, is amended by adding a subdivision 
92.2 	to read:
92.3 		Subd. 14a.Limitations on rate exceptions for residential services. (a) Effective July 
92.4 	1, 2026, the commissioner must implement limitations on the size and number of rate 
92.5 	exceptions for community residential services, customized living services, family residential 
92.6 	services, and integrated community supports.
92.7 	(b) The commissioner must restrict rate exceptions to the absence and utilization factor 
92.8 	ratio to people temporarily receiving hospital or crisis respite services.
92.9 	(c) For rate exceptions related to behavioral needs, the commissioner must include:
92.10 	(1) a documented behavioral diagnosis; or
92.11 	(2) determined assessed needs for behavioral supports as identified in the person's most 
92.12 	recent assessment.
92.13 	(d) Community residential services rate exceptions must not include positive supports 
92.14 	costs.
92.15 	(e) The commissioner must not approve rate exception requests related to increased 
92.16 	community time or transportation.
92.17 	(f) For the commissioner to approve a rate exception annual renewal, the person's most 
92.18 	recent assessment must indicate continued extraordinary needs in the areas cited in the 
92.19 	exception request. If a person's assessment continues to identify these extraordinary needs, 
92.20 	lead agencies requesting an annual renewal of rate exceptions must submit the following 
92.21 	provider-created documentation supporting the continuation of the exception, including but 
92.22 	not limited to:
92.23 	(1) payroll records for direct care wages cited in the request;
92.24 	(2) payment records or receipts for other costs cited in the request; and
92.25 	(3) documentation of expenses paid that were identified as necessary for the initial rate 
92.26 	exception.
92.27 	(g) The commissioner must not increase rate exception annual renewals that request an 
92.28 	exception to direct care or supervision wages more than the most recently implemented 
92.29 	base wage index determined under subdivision 5.
92.30 	(h) The commissioner must publish online an annual report detailing the impact of the 
92.31 	limitations under this subdivision on home and community-based services spending, including 
92.32 	but not limited to:
93.1 	(1) the number and percentage of rate exceptions granted and denied;
93.2 	(2) total spending on community residential setting services and rate exceptions;
93.3 	(3) trends in the percentage of spending attributable to rate exceptions; and
93.4 	(4) an evaluation of the effectiveness of the limitations in controlling spending growth.

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

93.8 	Sec. 45. Minnesota Statutes 2024, section 256B.4914, is amended by adding a subdivision 
93.9 	to read:
93.10 		Subd. 20.Sanctions and monetary recovery. Payments under this section are subject 
93.11 	to the sanctions and monetary recovery requirements under section 256B.064.

93.12 	Sec. 46. Minnesota Statutes 2024, section 256B.85, subdivision 2, is amended to read:
93.13 		Subd. 2.Definitions. (a) For the purposes of this section and section 256B.851, the terms 
93.14 	defined in this subdivision have the meanings given.
93.15 	(b) "Activities of daily living" or "ADLs" means:
93.16 	(1) dressing, including assistance with choosing, applying, and changing clothing and 
93.17 	applying special appliances, wraps, or clothing;
93.18 	(2) grooming, including assistance with basic hair care, oral care, shaving, applying 
93.19 	cosmetics and deodorant, and care of eyeglasses and hearing aids. Grooming includes nail 
93.20 	care, except for recipients who are diabetic or have poor circulation;
93.21 	(3) bathing, including assistance with basic personal hygiene and skin care;
93.22 	(4) eating, including assistance with hand washing and applying orthotics required for 
93.23 	eating or feeding;
93.24 	(5) transfers, including assistance with transferring the participant from one seating or 
93.25 	reclining area to another;
93.26 	(6) mobility, including assistance with ambulation and use of a wheelchair. Mobility 
93.27 	does not include providing transportation for a participant;
93.28 	(7) positioning, including assistance with positioning or turning a participant for necessary 
93.29 	care and comfort; and
94.1 	(8) toileting, including assistance with bowel or bladder elimination and care, transfers, 
94.2 	mobility, positioning, feminine hygiene, use of toileting equipment or supplies, cleansing 
94.3 	the perineal area, inspection of the skin, and adjusting clothing.
94.4 	(c) "Agency-provider model" means a method of CFSS under which a qualified agency 
94.5 	provides services and supports through the agency's own employees and policies. The agency 
94.6 	must allow the participant to have a significant role in the selection and dismissal of support 
94.7 	workers of their choice for the delivery of their specific services and supports.
94.8 	(d) "Behavior" means a description of a need for services and supports used to determine 
94.9 	the home care rating and additional service units. The presence of Level I behavior is used 
94.10 	to determine the home care rating.
94.11 	(e) "Budget model" means a service delivery method of CFSS that allows the use of a 
94.12 	service budget and assistance from a financial management services (FMS) provider for a 
94.13 	participant to directly employ support workers and purchase supports and goods.
94.14 	(f) "Complex health-related needs" means an intervention listed in clauses (1) to (8) that 
94.15 	has been ordered by a physician, advanced practice registered nurse, or physician's assistant 
94.16 	and is specified in an assessment summary, including:
94.17 	(1) tube feedings requiring:
94.18 	(i) a gastrojejunostomy tube; or
94.19 	(ii) continuous tube feeding lasting longer than 12 hours per day;
94.20 	(2) wounds described as:
94.21 	(i) stage III or stage IV;
94.22 	(ii) multiple wounds;
94.23 	(iii) requiring sterile or clean dressing changes or a wound vac; or
94.24 	(iv) open lesions such as burns, fistulas, tube sites, or ostomy sites that require specialized 
94.25 	care;
94.26 	(3) parenteral therapy described as:
94.27 	(i) IV therapy more than two times per week lasting longer than four hours for each 
94.28 	treatment; or
94.29 	(ii) total parenteral nutrition (TPN) daily;
94.30 	(4) respiratory interventions, including:
95.1 	(i) oxygen required more than eight hours per day;
95.2 	(ii) respiratory vest more than one time per day;
95.3 	(iii) bronchial drainage treatments more than two times per day;
95.4 	(iv) sterile or clean suctioning more than six times per day;
95.5 	(v) dependence on another to apply respiratory ventilation augmentation devices such 
95.6 	as BiPAP and CPAP; and
95.7 	(vi) ventilator dependence under section 256B.0651;
95.8 	(5) insertion and maintenance of catheter, including:
95.9 	(i) sterile catheter changes more than one time per month;
95.10 	(ii) clean intermittent catheterization, and including self-catheterization more than six 
95.11 	times per day; or
95.12 	(iii) bladder irrigations;
95.13 	(6) bowel program more than two times per week requiring more than 30 minutes to 
95.14 	perform each time;
95.15 	(7) neurological intervention, including:
95.16 	(i) seizures more than two times per week and requiring significant physical assistance 
95.17 	to maintain safety; or
95.18 	(ii) swallowing disorders diagnosed by a physician, advanced practice registered nurse, 
95.19 	or physician's assistant and requiring specialized assistance from another on a daily basis; 
95.20 	and
95.21 	(8) other congenital or acquired diseases creating a need for significantly increased direct 
95.22 	hands-on assistance and interventions in six to eight activities of daily living.
95.23 	(g) "Community first services and supports" or "CFSS" means the assistance and supports 
95.24 	program under this section needed for accomplishing activities of daily living, instrumental 
95.25 	activities of daily living, and health-related tasks through hands-on assistance to accomplish 
95.26 	the task or constant supervision and cueing to accomplish the task, or the purchase of goods 
95.27 	as defined in subdivision 7, clause (3), that replace the need for human assistance.
95.28 	(h) "Community first services and supports service delivery plan" or "CFSS service 
95.29 	delivery plan" means a written document detailing the services and supports chosen by the 
95.30 	participant to meet assessed needs that are within the approved CFSS service authorization, 
96.1 	as determined in subdivision 8. Services and supports are based on the support plan identified 
96.2 	in sections 256B.092, subdivision 1b, and 256S.10.
96.3 	(i) "Consultation services" means a Minnesota health care program enrolled provider 
96.4 	organization that provides assistance to the assisting a participant in making informed 
96.5 	choices about CFSS services in general and self-directed tasks in particular, and in developing 
96.6 	a person-centered CFSS service delivery plan to achieve quality service outcomes.
96.7 	(j) "Critical activities of daily living" means transferring, mobility, eating, and toileting.
96.8 	(k) "Dependency" in activities of daily living means a person requires hands-on assistance 
96.9 	or constant supervision and cueing to accomplish one or more of the activities of daily living 
96.10 	every day or on the days during the week that the activity is performed; however, a child 
96.11 	must not be found to be dependent in an activity of daily living if, because of the child's 
96.12 	age, an adult would either perform the activity for the child or assist the child with the 
96.13 	activity and the assistance needed is the assistance appropriate for a typical child of the 
96.14 	same age.
96.15 	(l) "Extended CFSS" means CFSS services and supports provided under CFSS that are 
96.16 	included in the CFSS service delivery plan through one of the home and community-based 
96.17 	services waivers and as approved and authorized under chapter 256S and sections 256B.092, 
96.18 	subdivision 5, and 256B.49, which exceed the amount, duration, and frequency of the state 
96.19 	plan CFSS services for participants. Extended CFSS excludes the purchase of goods.
96.20 	(m) "Financial management services provider" or "FMS provider" means a qualified 
96.21 	organization required for participants using the budget model under subdivision 13 that is 
96.22 	an enrolled provider with the department to provide vendor fiscal/employer agent financial 
96.23 	management services (FMS).
96.24 	(n) "Health-related procedures and tasks" means procedures and tasks related to the 
96.25 	specific assessed health needs of a participant that can be taught or assigned by a 
96.26 	state-licensed health care or mental health professional and performed by a support worker.
96.27 	(o) "Instrumental activities of daily living" means activities related to living independently 
96.28 	in the community, including but not limited to: meal planning, preparation, and cooking; 
96.29 	shopping for food, clothing, or other essential items; laundry; housecleaning; assistance 
96.30 	with medications; managing finances; communicating needs and preferences during activities; 
96.31 	arranging supports; and assistance with traveling around and participating in the community, 
96.32 	including traveling to medical appointments. For purposes of this paragraph, traveling 
96.33 	includes driving and accompanying the recipient in the recipient's chosen mode of 
96.34 	transportation and according to the individual CFSS service delivery plan.
97.1 	(p) "Lead agency" has the meaning given in section 256B.0911, subdivision 10.
97.2 	(q) "Legal representative" means parent of a minor, a court-appointed guardian, or 
97.3 	another representative with legal authority to make decisions about services and supports 
97.4 	for the participant. Other representatives with legal authority to make decisions include but 
97.5 	are not limited to a health care agent or an attorney-in-fact authorized through a health care 
97.6 	directive or power of attorney.
97.7 	(r) "Level I behavior" means physical aggression toward self or others or destruction of 
97.8 	property that requires the immediate response of another person.
97.9 	(s) "Medication assistance" means providing verbal or visual reminders to take regularly 
97.10 	scheduled medication, and includes any of the following supports listed in clauses (1) to 
97.11 	(3) and other types of assistance, except that a support worker must not determine medication 
97.12 	dose or time for medication or inject medications into veins, muscles, or skin:
97.13 	(1) under the direction of the participant or the participant's representative, bringing 
97.14 	medications to the participant including medications given through a nebulizer, opening a 
97.15 	container of previously set-up medications, emptying the container into the participant's 
97.16 	hand, opening and giving the medication in the original container to the participant, or 
97.17 	bringing to the participant liquids or food to accompany the medication;
97.18 	(2) organizing medications as directed by the participant or the participant's representative; 
97.19 	and
97.20 	(3) providing verbal or visual reminders to perform regularly scheduled medications.
97.21 	(t) "Participant" means a person who is eligible for CFSS.
97.22 	(u) "Participant's representative" means a parent, family member, advocate, or other 
97.23 	adult authorized by the participant or participant's legal representative, if any, to serve as a 
97.24 	representative in connection with the provision of CFSS. If the participant is unable to assist 
97.25 	in the selection of a participant's representative, the legal representative shall appoint one.
97.26 	(v) "Person-centered planning process" means a process that is directed by the participant 
97.27 	to plan for CFSS services and supports.
97.28 	(w) "Service budget" means the authorized dollar amount used for the budget model or 
97.29 	for the purchase of goods.
97.30 	(x) "Shared services" means the provision of CFSS services by the same CFSS support 
97.31 	worker to two or three participants who voluntarily enter into a written agreement to receive 
98.1 	services at the same time, in the same setting, and through the same agency-provider or 
98.2 	FMS provider.
98.3 	(y) "Support worker" means a qualified and trained employee of the agency-provider 
98.4 	as required by subdivision 11b or of the participant employer under the budget model as 
98.5 	required by subdivision 14 who has direct contact with the participant and provides services 
98.6 	as specified within the participant's CFSS service delivery plan.
98.7 	(z) "Unit" means the increment of service based on hours or minutes identified in the 
98.8 	service agreement.
98.9 	(aa) "Vendor fiscal employer agent" means an agency that provides financial management 
98.10 	services.
98.11 	(bb) "Wages and benefits" means the hourly wages and salaries, the employer's share 
98.12 	of FICA taxes, Medicare taxes, state and federal unemployment taxes, workers' compensation, 
98.13 	mileage reimbursement, health and dental insurance, life insurance, disability insurance, 
98.14 	long-term care insurance, uniform allowance, contributions to employee retirement accounts, 
98.15 	or other forms of employee compensation and benefits.
98.16 	(cc) "Worker training and development" means services provided according to subdivision 
98.17 	18a for developing workers' skills as required by the participant's individual CFSS service 
98.18 	delivery plan that are arranged for or provided by the agency-provider or purchased by the 
98.19 	participant employer. These services include training, education, direct observation and 
98.20 	supervision, and evaluation and coaching of job skills and tasks, including supervision of 
98.21 	health-related tasks or behavioral supports.

98.22 	Sec. 47. Minnesota Statutes 2024, section 256B.85, subdivision 5, is amended to read:
98.23 		Subd. 5.Assessment requirements. (a) The assessment of functional need must:
98.24 	(1) be conducted by a certified assessor according to the criteria established in section 
98.25 	256B.0911, subdivisions 17 to 21, 23, 24, and 29 to 31;
98.26 	(2) be conducted face-to-face, initially and at least annually thereafter, or when there is 
98.27 	a significant change in the participant's condition or a change in the need for services and 
98.28 	supports, or at the request of the participant when the participant experiences a change in 
98.29 	condition or needs a change in the services or supports; and
98.30 	(3) be completed using the format established by the commissioner.
98.31 	(b) The results of the assessment and any recommendations and authorizations for CFSS 
98.32 	must be determined and communicated in writing by the lead agency's assessor as defined 
99.1 	in section 256B.0911 to the participant or the participant's representative and chosen CFSS 
99.2 	providers within ten business days and must include the participant's right to appeal the 
99.3 	assessment under section 256.045, subdivision 3.
99.4 	(c) The lead agency assessor may authorize a temporary authorization for CFSS services 
99.5 	to be provided under the agency-provider model. The lead agency assessor may authorize 
99.6 	a temporary authorization for CFSS services to be provided under the agency-provider 
99.7 	model without using the assessment process described in this subdivision. Authorization 
99.8 	for a temporary level of CFSS services under the agency-provider model is limited to the 
99.9 	time specified by the commissioner, but shall not exceed 45 days. The level of services 
99.10 	authorized under this paragraph shall have no bearing on a future authorization. For CFSS 
99.11 	services needed beyond the 45-day temporary authorization, the lead agency must conduct 
99.12 	an assessment as described in this subdivision and participants must use consultation services 
99.13 	to complete their orientation and selection of a service model.

99.14 	Sec. 48. Minnesota Statutes 2024, section 256B.85, is amended by adding a subdivision 
99.15 	to read:
99.16 		Subd. 5a.Temporary authorization without assessment. The lead agency assessor 
99.17 	may authorize a temporary authorization for CFSS services to be provided under the 
99.18 	agency-provider model. The lead agency assessor may authorize a temporary authorization 
99.19 	for CFSS services to be provided under the agency-provider model without using the 
99.20 	assessment process described in subdivision 5. Authorization for a temporary level of CFSS 
99.21 	services under the agency-provider model is limited to the time specified by the 
99.22 	commissioner, but shall not exceed 45 days. The level of services authorized under this 
99.23 	subdivision shall have no bearing on a future authorization. For CFSS services needed 
99.24 	beyond the 45-day temporary authorization, the lead agency must conduct an assessment 
99.25 	as described in subdivision 5 and participants must use consultation services to complete 
99.26 	their orientation and selection of a service model.

99.27 	Sec. 49. Minnesota Statutes 2024, section 256B.85, subdivision 7, is amended to read:
99.28 		Subd. 7.Community first services and supports; covered services.  Services and 
99.29 	supports covered under CFSS include:
99.30 	(1) assistance to accomplish activities of daily living (ADLs), instrumental activities of 
99.31 	daily living (IADLs), and health-related procedures and tasks through hands-on assistance 
99.32 	to accomplish the task or constant supervision and cueing to accomplish the task;
100.1 	(2) assistance to acquire, maintain, or enhance the skills necessary for the participant to 
100.2 	accomplish activities of daily living, instrumental activities of daily living, or health-related 
100.3 	tasks;
100.4 	(3) expenditures for items, services, supports, environmental modifications, or goods, 
100.5 	including assistive technology. These expenditures must:
100.6 	(i) relate to a need identified in a participant's CFSS service delivery plan; and
100.7 	(ii) increase independence or substitute for human assistance, to the extent that 
100.8 	expenditures would otherwise be made for human assistance for the participant's assessed 
100.9 	needs;
100.10 	(4) observation and redirection for behavior or symptoms where there is a need for 
100.11 	assistance;
100.12 	(5) back-up systems or mechanisms, such as the use of pagers or other electronic devices, 
100.13 	to ensure continuity of the participant's services and supports;
100.14 	(6) swimming lessons for a participant younger than 12 years of age whose disability 
100.15 	puts the participant at a higher risk of drowning according to the Centers for Disease Control 
100.16 	Vital Statistics System;
100.17 	(6) (7) services described under subdivision 17 provided by a consultation services 
100.18 	provider as defined under subdivision 17, that is under contract with the department and 
100.19 	enrolled as a Minnesota health care program provider meeting the requirements of subdivision 
100.20 	17a;
100.21 	(7) (8) services provided by an FMS provider as defined under subdivision 13a, that is 
100.22 	an enrolled provider with the department;
100.23 	(8) (9) CFSS services provided by a support worker who is a parent, stepparent, or legal 
100.24 	guardian of a participant under age 18, or who is the participant's spouse. Covered services 
100.25 	under this clause are subject to the limitations described in subdivision 7b; and
100.26 	(9) (10) worker training and development services as described in subdivision 18a.

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

101.1 	Sec. 50. Minnesota Statutes 2024, section 256B.85, subdivision 7a, is amended to read:
101.2 		Subd. 7a.Enhanced rate. (a) An enhanced rate of 107.5 percent of the rate paid for 
101.3 	CFSS must be paid for services provided to persons who qualify for ten or more hours of 
101.4 	CFSS per day when provided by a support worker who meets the requirements of subdivision 
101.5 	16, paragraph (e). This paragraph expires upon the effective date of paragraph (b).
101.6 	(b) Effective January 1, 2026, or upon federal approval, whichever is later, an enhanced 
101.7 	rate of 112.5 percent of the rate paid for CFSS must be paid for services provided to persons 
101.8 	who qualify for ten or more hours of CFSS per day when provided by a support worker 
101.9 	who meets the requirements of subdivision 16, paragraph (e). This paragraph expires upon 
101.10 	the effective date of paragraph (c).
101.11 	(c) Effective January 1, 2027, or upon federal approval, whichever is later, an enhanced 
101.12 	rate of 112.5 percent of the rate paid for CFSS must be paid for services provided to persons 
101.13 	who qualify for ten or more hours of CFSS per day.
101.14 	(b) (d) An agency provider must use all additional revenue attributable to the rate 
101.15 	enhancements under this subdivision for the wages and wage-related costs of the support 
101.16 	workers, including any corresponding increase in the employer's share of FICA taxes, 
101.17 	Medicare taxes, state and federal unemployment taxes, and workers' compensation premiums. 
101.18 	The agency provider must not use the additional revenue attributable to any enhanced rate 
101.19 	under this subdivision to pay for mileage reimbursement, health and dental insurance, life 
101.20 	insurance, disability insurance, long-term care insurance, uniform allowance, contributions 
101.21 	to employee retirement accounts, or any other employee benefits.
101.22 	(c) (e) Any change in the eligibility criteria for the enhanced rate for CFSS as described 
101.23 	in this subdivision and referenced in subdivision 16, paragraph (e), does not constitute a 
101.24 	change in a term or condition for individual providers as defined in section 256B.0711, and 
101.25 	is not subject to the state's obligation to meet and negotiate under chapter 179A.

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

101.27 	Sec. 51. Minnesota Statutes 2024, section 256B.85, subdivision 8, is amended to read:
101.28 		Subd. 8.Determination of CFSS service authorization amount. (a) All community 
101.29 	first services and supports must be authorized by the commissioner or the commissioner's 
101.30 	designee before services begin. The authorization for CFSS must be completed as soon as 
101.31 	possible following an assessment but no later than 40 calendar days from the date of the 
101.32 	assessment.
102.1 	(b) The amount of CFSS authorized must be based on the participant's home care rating 
102.2 	described in paragraphs (d) and (e) and any additional service units for which the participant 
102.3 	qualifies as described in paragraph (f).
102.4 	(c) The home care rating shall be determined by the commissioner or the commissioner's 
102.5 	designee based on information submitted to the commissioner identifying the following for 
102.6 	a participant:
102.7 	(1) the total number of dependencies of activities of daily living;
102.8 	(2) the presence of complex health-related needs; and
102.9 	(3) the presence of Level I behavior.
102.10 	(d) The methodology to determine the total service units for CFSS for each home care 
102.11 	rating is based on the median paid units per day for each home care rating from fiscal year 
102.12 	2007 data for the PCA program.
102.13 	(e) Each home care rating is designated by the letters P through Z and EN and has the 
102.14 	following base number of service units assigned:
102.15 	(1) P home care rating requires Level I behavior or one to three dependencies in ADLs 
102.16 	and qualifies the person for five service units;
102.17 	(2) Q home care rating requires Level I behavior and one to three dependencies in ADLs 
102.18 	and qualifies the person for six service units;
102.19 	(3) R home care rating requires a complex health-related need and one to three 
102.20 	dependencies in ADLs and qualifies the person for seven service units;
102.21 	(4) S home care rating requires four to six dependencies in ADLs and qualifies the person 
102.22 	for ten service units;
102.23 	(5) T home care rating requires four to six dependencies in ADLs and Level I behavior 
102.24 	and qualifies the person for 11 service units;
102.25 	(6) U home care rating requires four to six dependencies in ADLs and a complex 
102.26 	health-related need and qualifies the person for 14 service units;
102.27 	(7) V home care rating requires seven to eight dependencies in ADLs and qualifies the 
102.28 	person for 17 service units;
102.29 	(8) W home care rating requires seven to eight dependencies in ADLs and Level I 
102.30 	behavior and qualifies the person for 20 service units;
103.1 	(9) Z home care rating requires seven to eight dependencies in ADLs and a complex 
103.2 	health-related need and qualifies the person for 30 service units; and
103.3 	(10) EN home care rating includes ventilator dependency as defined in section 256B.0651, 
103.4 	subdivision 1, paragraph (g). A person who meets the definition of ventilator-dependent 
103.5 	and the EN home care rating and utilize a combination of CFSS and home care nursing 
103.6 	services is limited to a total of 96 service units per day for those services in combination. 
103.7 	Additional units may be authorized when a person's assessment indicates a need for two 
103.8 	staff to perform activities. Additional time is limited to 16 service units per day.
103.9 	(f) Additional service units are provided through the assessment and identification of 
103.10 	the following:
103.11 	(1) 30 additional minutes per day for a dependency in each critical activity of daily 
103.12 	living;
103.13 	(2) 30 additional minutes per day for each complex health-related need; and
103.14 	(3) 30 additional minutes per day for each behavior under this clause that requires 
103.15 	assistance at least four times per week:
103.16 	(i) level I behavior that requires the immediate response of another person;
103.17 	(ii) increased vulnerability due to cognitive deficits or socially inappropriate behavior; 
103.18 	or
103.19 	(iii) increased need for assistance for participants who are verbally aggressive or resistive 
103.20 	to care so that the time needed to perform activities of daily living is increased.
103.21 	(g) The service budget for budget model participants shall be based on:
103.22 	(1) assessed units as determined by the home care rating; and
103.23 	(2) an adjustment needed for administrative expenses. This paragraph expires upon the 
103.24 	effective date of paragraph (h).
103.25 	(h) Effective January 1, 2026, or upon federal approval, whichever is later, the service 
103.26 	budget for budget model participants shall be based on:
103.27 	(1) assessed units as determined by the home care rating and the payment methodologies 
103.28 	under section 256B.851; and
103.29 	(2) an adjustment needed for administrative expenses.

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

104.1 	Sec. 52. Minnesota Statutes 2024, section 256B.85, subdivision 8a, is amended to read:
104.2 		Subd. 8a.Authorization; exceptions. All CFSS services must be authorized by the 
104.3 	commissioner or the commissioner's designee as described in subdivision 8 except when:
104.4 	(1) the lead agency temporarily authorizes services in the agency-provider model as 
104.5 	described in subdivision 5, paragraph (c) 5a;
104.6 	(2) CFSS services in the agency-provider model were required to treat an emergency 
104.7 	medical condition that if not immediately treated could cause a participant serious physical 
104.8 	or mental disability, continuation of severe pain, or death. The CFSS agency provider must 
104.9 	request retroactive authorization from the lead agency no later than five working days after 
104.10 	providing the initial emergency service. The CFSS agency provider must be able to 
104.11 	substantiate the emergency through documentation such as reports, notes, and admission 
104.12 	or discharge histories. A lead agency must follow the authorization process in subdivision 
104.13 	5 after the lead agency receives the request for authorization from the agency provider;
104.14 	(3) the lead agency authorizes a temporary increase to the amount of services authorized 
104.15 	in the agency or budget model to accommodate the participant's temporary higher need for 
104.16 	services. Authorization for a temporary level of CFSS services is limited to the time specified 
104.17 	by the commissioner, but shall not exceed 45 days. The level of services authorized under 
104.18 	this clause shall have no bearing on a future authorization;
104.19 	(4) a participant's medical assistance eligibility has lapsed, is then retroactively reinstated, 
104.20 	and an authorization for CFSS services is completed based on the date of a current 
104.21 	assessment, eligibility, and request for authorization;
104.22 	(5) a third-party payer for CFSS services has denied or adjusted a payment. Authorization 
104.23 	requests must be submitted by the provider within 20 working days of the notice of denial 
104.24 	or adjustment. A copy of the notice must be included with the request;
104.25 	(6) the commissioner has determined that a lead agency or state human services agency 
104.26 	has made an error; or
104.27 	(7) a participant enrolled in managed care experiences a temporary disenrollment from 
104.28 	a health plan, in which case the commissioner shall accept the current health plan 
104.29 	authorization for CFSS services for up to 60 days. The request must be received within the 
104.30 	first 30 days of the disenrollment. If the recipient's reenrollment in managed care is after 
104.31 	the 60 days and before 90 days, the provider shall request an additional 30-day extension 
104.32 	of the current health plan authorization, for a total limit of 90 days from the time of 
104.33 	disenrollment.

105.1 	Sec. 53. Minnesota Statutes 2024, section 256B.85, subdivision 11, is amended to read:
105.2 		Subd. 11.Agency-provider model. (a) The agency-provider model includes services 
105.3 	provided by support workers and staff providing worker training and development services 
105.4 	who are employed by an agency-provider that meets the criteria established by the 
105.5 	commissioner, including required training.
105.6 	(b) The agency-provider shall allow the participant to have a significant role in the 
105.7 	selection and dismissal of the support workers for the delivery of the services and supports 
105.8 	specified in the participant's CFSS service delivery plan. The agency must make a reasonable 
105.9 	effort to fulfill the participant's request for the participant's preferred support worker.
105.10 	(c) A participant may use authorized units of CFSS services as needed within a service 
105.11 	agreement that is not greater than 12 months. Using authorized units in a flexible manner 
105.12 	in either the agency-provider model or the budget model does not increase the total amount 
105.13 	of services and supports authorized for a participant or included in the participant's CFSS 
105.14 	service delivery plan.
105.15 	(d) A participant may share CFSS services. Two or three CFSS participants may share 
105.16 	services at the same time provided by the same support worker.
105.17 	(e) The agency-provider must use a minimum of 72.5 percent of the revenue generated 
105.18 	by the medical assistance payment for CFSS for support worker wages and benefits, except 
105.19 	all of the revenue generated by a medical assistance rate increase due to a collective 
105.20 	bargaining agreement under section 179A.54 must be used for support worker wages and 
105.21 	benefits. The agency-provider must document how this requirement is being met. The 
105.22 	revenue generated by the worker training and development services and the reasonable costs 
105.23 	associated with the worker training and development services must not be used in making 
105.24 	this calculation.
105.25 	(f) The agency-provider model must be used by participants who are restricted by the 
105.26 	Minnesota restricted recipient program under Minnesota Rules, parts 9505.2160 to 
105.27 	9505.2245.
105.28 	(g) Participants purchasing goods under this the agency-provider model, along with 
105.29 	support worker services, must:
105.30 	(1) specify the goods in the CFSS service delivery plan and detailed budget for 
105.31 	expenditures that must be approved by the lead agency, case manager, or care coordinator; 
105.32 	and
105.33 	(2) use the FMS provider for the billing and payment of such goods.
106.1 	(h) The agency provider is responsible for ensuring that any worker driving a participant 
106.2 	under subdivision 2, paragraph (o), has a valid driver's license and the vehicle used is 
106.3 	registered and insured according to Minnesota law.

106.4 	Sec. 54. Minnesota Statutes 2024, section 256B.85, subdivision 13, is amended to read:
106.5 		Subd. 13.Budget model. (a) Under the budget model participants exercise responsibility 
106.6 	and control over the services and supports described and budgeted within the CFSS service 
106.7 	delivery plan. Participants must use consultation services specified in subdivision 17 and 
106.8 	services specified in subdivision 13a provided by an FMS provider. Under this model, 
106.9 	participants may use their approved service budget allocation to:
106.10 	(1) directly employ support workers, and pay wages, federal and state payroll taxes, and 
106.11 	premiums for workers' compensation, liability, family and medical benefit insurance, and 
106.12 	health insurance coverage; and
106.13 	(2) obtain supports and goods as defined in subdivision 7.
106.14 	(b) Participants who are unable to fulfill any of the functions listed in paragraph (a) may 
106.15 	authorize a legal representative or participant's representative to do so on their behalf.
106.16 	(c) If two or more participants using the budget model live in the same household and 
106.17 	have the same support worker, the participants must use the same FMS provider.
106.18 	(d) If the FMS provider advises that there is a joint employer in the budget model, all 
106.19 	participants associated with that joint employer must use the same FMS provider.
106.20 	(e) The commissioner shall disenroll or exclude participants from the budget model and 
106.21 	transfer them to the agency-provider model under, but not limited to, the following 
106.22 	circumstances:
106.23 	(1) when a participant has been restricted by the Minnesota restricted recipient program, 
106.24 	in which case the participant may be excluded for a specified time period under Minnesota 
106.25 	Rules, parts 9505.2160 to 9505.2245;
106.26 	(2) when a participant exits the budget model during the participant's service plan year. 
106.27 	Upon transfer, the participant shall not access the budget model for the remainder of that 
106.28 	service plan year; or
106.29 	(3) when the department determines that the participant or participant's representative 
106.30 	or legal representative is unable to fulfill the responsibilities under the budget model, as 
106.31 	specified in subdivision 14.
107.1 	(f) A participant may appeal in writing to the department under section 256.045, 
107.2 	subdivision 3, to contest the department's decision under paragraph (e), clause (3), to disenroll 
107.3 	or exclude the participant from the budget model.

107.4 	Sec. 55. Minnesota Statutes 2024, section 256B.85, subdivision 16, is amended to read:
107.5 		Subd. 16.Support workers requirements. (a) Support workers shall:
107.6 	(1) enroll with the department as a support worker after a background study under chapter 
107.7 	245C has been completed and the support worker has received a notice from the 
107.8 	commissioner that the support worker:
107.9 	(i) is not disqualified under section 245C.14; or
107.10 	(ii) is disqualified, but has received a set-aside of the disqualification under section 
107.11 	245C.22;
107.12 	(2) have the ability to effectively communicate with the participant or the participant's 
107.13 	representative;
107.14 	(3) have the skills and ability to provide the services and supports according to the 
107.15 	participant's CFSS service delivery plan and respond appropriately to the participant's needs;
107.16 	(4) complete the basic standardized CFSS training as determined by the commissioner 
107.17 	before completing enrollment. The training must be available in languages other than English 
107.18 	and to those who need accommodations due to disabilities. CFSS support worker training 
107.19 	must include successful completion of the following training components: basic first aid, 
107.20 	vulnerable adult, child maltreatment, OSHA universal precautions, basic roles and 
107.21 	responsibilities of support workers including information about basic body mechanics, 
107.22 	emergency preparedness, orientation to positive behavioral practices, orientation to 
107.23 	responding to a mental health crisis, fraud issues, time cards and documentation, and an 
107.24 	overview of person-centered planning and self-direction. Upon completion of the training 
107.25 	components, the support worker must pass the certification test to provide assistance to 
107.26 	participants;
107.27 	(5) complete employer-directed training and orientation on the participant's individual 
107.28 	needs;
107.29 	(6) maintain the privacy and confidentiality of the participant; and
107.30 	(7) not independently determine the medication dose or time for medications for the 
107.31 	participant.
108.1 	(b) The commissioner may deny or terminate a support worker's provider enrollment 
108.2 	and provider number if the support worker:
108.3 	(1) does not meet the requirements in paragraph (a);
108.4 	(2) fails to provide the authorized services required by the employer;
108.5 	(3) has been intoxicated by alcohol or drugs while providing authorized services to the 
108.6 	participant or while in the participant's home;
108.7 	(4) has manufactured or distributed drugs while providing authorized services to the 
108.8 	participant or while in the participant's home; or
108.9 	(5) has been excluded as a provider by the commissioner of human services, or by the 
108.10 	United States Department of Health and Human Services, Office of Inspector General, from 
108.11 	participation in Medicaid, Medicare, or any other federal health care program.
108.12 	(c) A support worker may appeal in writing to the commissioner to contest the decision 
108.13 	to terminate the support worker's provider enrollment and provider number.
108.14 	(d) A support worker must not provide or be paid for more than 310 hours of CFSS per 
108.15 	month, regardless of the number of participants the support worker serves or the number 
108.16 	of agency-providers or participant employers by which the support worker is employed. 
108.17 	The department shall not disallow the number of hours per day a support worker works 
108.18 	unless it violates other law.
108.19 	(e) CFSS qualify for an enhanced rate or budget if the support worker providing the 
108.20 	services:
108.21 	(1) provides services, within the scope of CFSS described in subdivision 7, to a participant 
108.22 	who qualifies for ten or more hours per day of CFSS; and
108.23 	(2) satisfies the current requirements of Medicare for training and competency or 
108.24 	competency evaluation of home health aides or nursing assistants, as provided in the Code 
108.25 	of Federal Regulations, title 42, section 483.151 or 484.36, or alternative state-approved 
108.26 	training or competency requirements. This paragraph expires December 31, 2026.

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

108.28 	Sec. 56. Minnesota Statutes 2024, section 256B.85, subdivision 17a, is amended to read:
108.29 		Subd. 17a.Consultation services provider qualifications and 
108.30 	requirements. Consultation services providers must meet the following qualifications and 
108.31 	requirements:
109.1 	(1) meet the requirements under subdivision 10, paragraph (a), excluding clauses (4) 
109.2 	and (5);
109.3 	(2) are be under contract with the department and enrolled as a Minnesota health care 
109.4 	program provider;
109.5 	(3) are not not be the FMS provider, the lead agency, or the CFSS or home and 
109.6 	community-based services waiver vendor or agency-provider to the participant;
109.7 	(4) meet the service standards as established by the commissioner;
109.8 	(5) have proof of surety bond coverage. Upon new enrollment, or if the consultation 
109.9 	service provider's Medicaid revenue in the previous calendar year is less than or equal to 
109.10 	$300,000, the consultation service provider must purchase a surety bond of $50,000. If the 
109.11 	agency-provider's Medicaid revenue in the previous calendar year is greater than $300,000, 
109.12 	the consultation service provider must purchase a surety bond of $100,000. The surety bond 
109.13 	must be in a form approved by the commissioner, must be renewed annually, and must 
109.14 	allow for recovery of costs and fees in pursuing a claim on the bond;
109.15 	(6) employ lead professional staff with a minimum of two years of experience in 
109.16 	providing services such as support planning, support broker, case management or care 
109.17 	coordination, or consultation services and consumer education to participants using a 
109.18 	self-directed program using FMS under medical assistance;
109.19 	(7) report maltreatment as required under chapter 260E and section 626.557;
109.20 	(8) comply with medical assistance provider requirements;
109.21 	(9) understand the CFSS program and its policies;
109.22 	(10) are be knowledgeable about self-directed principles and the application of the 
109.23 	person-centered planning process;
109.24 	(11) have general knowledge of the FMS provider duties and the vendor fiscal/employer 
109.25 	agent model, including all applicable federal, state, and local laws and regulations regarding 
109.26 	tax, labor, employment, and liability and workers' compensation coverage for household 
109.27 	workers; and
109.28 	(12) have all employees, including lead professional staff, staff in management and 
109.29 	supervisory positions, and owners of the agency who are active in the day-to-day management 
109.30 	and operations of the agency, complete training as specified in the contract with the 
109.31 	department.

110.1 	Sec. 57. Minnesota Statutes 2024, section 256B.851, subdivision 5, is amended to read:
110.2 		Subd. 5.Payment rates; component values. (a) The commissioner must use the 
110.3 	following component values:
110.4 	(1) employee vacation, sick, and training factor, 8.71 percent;
110.5 	(2) employer taxes and workers' compensation factor, 11.56 percent;
110.6 	(3) employee benefits factor, 12.04 percent;
110.7 	(4) client programming and supports factor, 2.30 percent;
110.8 	(5) program plan support factor, 7.00 percent;
110.9 	(6) general business and administrative expenses factor, 13.25 percent;
110.10 	(7) program administration expenses factor, 2.90 percent; and
110.11 	(8) absence and utilization factor, 3.90 percent.
110.12 	(b) For purposes of implementation, the commissioner shall use the following 
110.13 	implementation components:
110.14 	(1) personal care assistance services and CFSS: 88.19 percent;
110.15 	(2) enhanced rate personal care assistance services and enhanced rate CFSS: 88.19 
110.16 	percent; and
110.17 	(3) qualified professional services and CFSS worker training and development: 88.19 
110.18 	percent.
110.19 	(c) (b) Effective January 1, 2025, for purposes of implementation, the commissioner 
110.20 	shall use the following implementation components:
110.21 	(1) personal care assistance services and CFSS: 92.08 percent;
110.22 	(2) enhanced rate personal care assistance services and enhanced rate CFSS: 92.08 
110.23 	percent; and
110.24 	(3) qualified professional services and CFSS worker training and development: 92.08 
110.25 	percent. This paragraph expires upon the effective date of subdivision 5a.
110.26 	(d) (c) The commissioner shall use the following worker retention components:
110.27 	(1) for workers who have provided fewer than 1,001 cumulative hours in personal care 
110.28 	assistance services or CFSS, the worker retention component is zero percent;
111.1 	(2) for workers who have provided between 1,001 and 2,000 cumulative hours in personal 
111.2 	care assistance services or CFSS, the worker retention component is 2.17 percent;
111.3 	(3) for workers who have provided between 2,001 and 6,000 cumulative hours in personal 
111.4 	care assistance services or CFSS, the worker retention component is 4.36 percent;
111.5 	(4) for workers who have provided between 6,001 and 10,000 cumulative hours in 
111.6 	personal care assistance services or CFSS, the worker retention component is 7.35 percent; 
111.7 	and
111.8 	(5) for workers who have provided more than 10,000 cumulative hours in personal care 
111.9 	assistance services or CFSS, the worker retention component is 10.81 percent. This paragraph 
111.10 	expires upon the effective date of subdivision 5b.
111.11 	(e) (d) The commissioner shall define the appropriate worker retention component under 
111.12 	subdivision 5b or 5c based on the total number of units billed for services rendered by the 
111.13 	individual provider since July 1, 2017. The worker retention component must be determined 
111.14 	by the commissioner for each individual provider and is not subject to appeal.

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

111.16 	Sec. 58. Minnesota Statutes 2024, section 256B.851, is amended by adding a subdivision 
111.17 	to read:
111.18 		Subd. 5a.Payment rates; implementation factor. Effective January 1, 2026, or upon 
111.19 	federal approval, whichever is later, for purposes of implementation, the commissioner shall 
111.20 	use the following implementation components:
111.21 	(1) personal care assistance services and CFSS: 92.20 percent;
111.22 	(2) enhanced rate personal care assistance services and enhanced rate CFSS: 92.20 
111.23 	percent; and
111.24 	(3) qualified professional services and CFSS worker training and development: 92.20 
111.25 	percent.

111.26 	Sec. 59. Minnesota Statutes 2024, section 256B.851, is amended by adding a subdivision 
111.27 	to read:
111.28 		Subd. 5b.Payment rates; worker retention component. Effective January 1, 2026, 
111.29 	or upon federal approval, whichever is later, the commissioner shall use the following 
111.30 	worker retention components:
112.1 	(1) for workers who have provided fewer than 1,001 cumulative hours in personal care 
112.2 	assistance services or CFSS, the worker retention component is zero percent;
112.3 	(2) for workers who have provided between 1,001 and 2,000 cumulative hours in personal 
112.4 	care assistance services or CFSS, the worker retention component is 4.05 percent;
112.5 	(3) for workers who have provided between 2,001 and 6,000 cumulative hours in personal 
112.6 	care assistance services or CFSS, the worker retention component is 6.24 percent;
112.7 	(4) for workers who have provided between 6,001 and 10,000 cumulative hours in 
112.8 	personal care assistance services or CFSS, the worker retention component is 9.23 percent; 
112.9 	and
112.10 	(5) for workers who have provided more than 10,000 cumulative hours in personal care 
112.11 	assistance services or CFSS, the worker retention component is 12.69 percent.

112.12 	Sec. 60. Minnesota Statutes 2024, section 256B.851, is amended by adding a subdivision 
112.13 	to read:
112.14 		Subd. 5c.Payment rates; enhanced worker retention component. Effective January 
112.15 	1, 2027, or upon federal approval, whichever is later, the commissioner shall use the 
112.16 	following worker retention components if a worker has completed either the orientation for 
112.17 	individual providers offered through the Home Care Orientation Trust or an orientation 
112.18 	defined and offered by the commissioner:
112.19 	(1) for workers who have provided fewer than 1,001 cumulative hours in personal care 
112.20 	assistance services or CFSS, the worker retention component is 1.88 percent;
112.21 	(2) for workers who have provided between 1,001 and 2,000 cumulative hours in personal 
112.22 	care assistance services or CFSS, the worker retention component is 5.92 percent;
112.23 	(3) for workers who have provided between 2,001, and 6,000 cumulative hours in personal 
112.24 	care assistance services or CFSS, the worker retention component is 8.11 percent;
112.25 	(4) for workers who have provided between 6,001 and 10,000 cumulative hours in 
112.26 	personal care assistance services or CFSS, the worker retention component is 11.10 percent; 
112.27 	and
112.28 	(5) for workers who have provided more than 10,000 cumulative hours in personal care 
112.29 	assistance services or CFSS, the worker retention component is 14.56 percent.

113.1 	Sec. 61. Minnesota Statutes 2024, section 256B.851, subdivision 6, is amended to read:
113.2 		Subd. 6.Payment rates; rate determination. (a) The commissioner must determine 
113.3 	the rate for personal care assistance services, CFSS, extended personal care assistance 
113.4 	services, extended CFSS, enhanced rate personal care assistance services, enhanced rate 
113.5 	CFSS, qualified professional services, and CFSS worker training and development as 
113.6 	follows:
113.7 	(1) multiply the appropriate total wage component value calculated in subdivision 4 by 
113.8 	one plus the employee vacation, sick, and training factor in subdivision 5;
113.9 	(2) for program plan support, multiply the result of clause (1) by one plus the program 
113.10 	plan support factor in subdivision 5;
113.11 	(3) for employee-related expenses, add the employer taxes and workers' compensation 
113.12 	factor in subdivision 5 and the employee benefits factor in subdivision 5. The sum is 
113.13 	employee-related expenses. Multiply the product of clause (2) by one plus the value for 
113.14 	employee-related expenses;
113.15 	(4) for client programming and supports, multiply the product of clause (3) by one plus 
113.16 	the client programming and supports factor in subdivision 5;
113.17 	(5) for administrative expenses, add the general business and administrative expenses 
113.18 	factor in subdivision 5, the program administration expenses factor in subdivision 5, and 
113.19 	the absence and utilization factor in subdivision 5;
113.20 	(6) divide the result of clause (4) by one minus the result of clause (5). The quotient is 
113.21 	the hourly rate;
113.22 	(7) multiply the hourly rate by the appropriate implementation component under 
113.23 	subdivision 5 or 5a. This is the adjusted hourly rate; and
113.24 	(8) divide the adjusted hourly rate by four. The quotient is the total adjusted payment 
113.25 	rate.
113.26 	(b) In processing personal care assistance provider agency and CFSS provider agency 
113.27 	claims, the commissioner shall incorporate the applicable worker retention component
113.28 	components specified in subdivision 5, 5b, or 5c, by multiplying one plus the total adjusted 
113.29 	payment rate by the appropriate worker retention component under subdivision 5, paragraph 
113.30 	(d) 5b, or 5c.
113.31 	(c) The commissioner must publish the total final payment rates.

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

114.4 	Sec. 62. Minnesota Statutes 2024, section 256B.851, subdivision 7, is amended to read:
114.5 		Subd. 7.Treatment of rate adjustments provided outside of cost components. Any 
114.6 	rate adjustments applied to the service rates calculated under this section outside of the cost 
114.7 	components and rate methodology specified in this section, including but not limited to 
114.8 	those implemented to enable participant-employers and provider agencies to meet the terms 
114.9 	and conditions of any collective bargaining agreement negotiated under chapter 179A, shall 
114.10 	be applied as changes to the value of component values or, implementation components, 
114.11 	or worker retention components in subdivision subdivisions 5 to 5c.

114.12 	Sec. 63. Minnesota Statutes 2024, section 256B.851, is amended by adding a subdivision 
114.13 	to read:
114.14 		Subd. 7a.Budget determinations. The commissioner shall increase the authorized 
114.15 	amount for the CFSS budget model of those CFSS participant-employers employing 
114.16 	individual providers who have provided more than 1,000 hours of services and individual 
114.17 	providers who have completed the orientation offered by the Home Care Orientation Trust 
114.18 	or an orientation defined and offered by the commissioner. The commissioner shall determine 
114.19 	the amount and method of the authorized amount increase.

114.20 	Sec. 64. Minnesota Statutes 2024, section 260E.14, subdivision 1, is amended to read:
114.21 		Subdivision 1.Facilities and schools. (a) The local welfare agency is the agency 
114.22 	responsible for investigating allegations of maltreatment in child foster care, family child 
114.23 	care, legally nonlicensed child care, and reports involving children served by an unlicensed 
114.24 	personal care provider organization under section 256B.0659. Copies of findings related to 
114.25 	personal care provider organizations under section 256B.0659 must be forwarded to the 
114.26 	Department of Human Services provider enrollment.
114.27 	(b) The Department of Children, Youth, and Families is the agency responsible for 
114.28 	screening and investigating allegations of maltreatment in juvenile correctional facilities 
114.29 	listed under section 241.021 located in the local welfare agency's county and in facilities 
114.30 	licensed or certified under chapters 245A and 245D.
115.1 	(c) The Department of Health is the agency responsible for screening and investigating 
115.2 	allegations of maltreatment in facilities licensed under sections 144.50 to 144.58 and 144A.43 
115.3 	to 144A.482 or chapter 144H.
115.4 	(d) The Department of Education is the agency responsible for screening and investigating 
115.5 	allegations of maltreatment in a school as defined in section 120A.05, subdivisions 9, 11, 
115.6 	and 13, and chapter 124E. The Department of Education's responsibility to screen and 
115.7 	investigate includes allegations of maltreatment involving students 18 through 21 years of 
115.8 	age, including students receiving special education services, up to and including graduation 
115.9 	and the issuance of a secondary or high school diploma.
115.10 	(e) The Department of Human Services is the agency responsible for screening and 
115.11 	investigating allegations of maltreatment of minors in an EIDBI agency operating under 
115.12 	sections 245A.142 and 256B.0949.
115.13 	(e) (f) A health or corrections agency receiving a report may request the local welfare 
115.14 	agency to provide assistance pursuant to this section and sections 260E.20 and 260E.22.
115.15 	(f) (g) The Department of Children, Youth, and Families is the agency responsible for 
115.16 	screening and investigating allegations of maltreatment in facilities or programs not listed 
115.17 	in paragraph (a) that are licensed or certified under chapters 142B and 142C.

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

115.19 	Sec. 65. Minnesota Statutes 2024, section 626.5572, subdivision 13, is amended to read:
115.20 		Subd. 13.Lead investigative agency. "Lead investigative agency" is the primary 
115.21 	administrative agency responsible for investigating reports made under section 626.557.
115.22 	(a) The Department of Health is the lead investigative agency for facilities or services 
115.23 	licensed or required to be licensed as hospitals, home care providers, nursing homes, boarding 
115.24 	care homes, hospice providers, residential facilities that are also federally certified as 
115.25 	intermediate care facilities that serve people with developmental disabilities, or any other 
115.26 	facility or service not listed in this subdivision that is licensed or required to be licensed by 
115.27 	the Department of Health for the care of vulnerable adults. "Home care provider" has the 
115.28 	meaning provided in section 144A.43, subdivision 4, and applies when care or services are 
115.29 	delivered in the vulnerable adult's home.
115.30 	(b) The Department of Human Services is the lead investigative agency for facilities or 
115.31 	services licensed or required to be licensed as adult day care, adult foster care, community 
115.32 	residential settings, programs for people with disabilities, EIDBI agencies, family adult day 
115.33 	services, mental health programs, mental health clinics, substance use disorder programs, 
116.1 	the Minnesota Sex Offender Program, or any other facility or service not listed in this 
116.2 	subdivision that is licensed or required to be licensed by the Department of Human Services.
116.3 	(c) The county social service agency or its designee is the lead investigative agency for 
116.4 	all other reports, including, but not limited to, reports involving vulnerable adults receiving 
116.5 	services from a personal care provider organization under section 256B.0659.

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

116.7 	Sec. 66. Laws 2021, First Special Session chapter 7, article 13, section 73, is amended to 
116.8 	read:
116.9 	Sec. 73. WAIVER REIMAGINE PHASE II.
 116.10 	(a) Effective January 1, 2027, or upon federal approval, whichever is later, the 
116.11 	commissioner of human services must implement a two-home and community-based services 
116.12 	waiver program structure, as authorized under section 1915(c) of the federal Social Security 
116.13 	Act, that serves persons who are determined by a certified assessor to require the levels of 
116.14 	care provided in a nursing home, a hospital, a neurobehavioral hospital, or an intermediate 
116.15 	care facility for persons with developmental disabilities.
116.16 	(b) The commissioner of human services must implement an individualized budget 
116.17 	methodology, as authorized under section 1915(c) of the federal Social Security Act, that 
116.18 	serves persons who are determined by a certified assessor to require the levels of care 
116.19 	provided in a nursing home, a hospital, a neurobehavioral hospital, or an intermediate care 
116.20 	facility for persons with developmental disabilities.
116.21 	(c) The commissioner must develop an individualized budget methodology exception 
116.22 	to support access to self-directed home care nursing services. Lead agencies must submit 
116.23 	budget exception requests to the commissioner in a manner identified by the commissioner. 
116.24 	Eligibility for the budget exception in this paragraph is limited to persons meeting all of the 
116.25 	following criteria in the person's most recent assessment:
116.26 	(1) the person is assessed to need the level of care delivered in a hospital setting as 
116.27 	evidenced by the submission of the Department of Human Services form 7096, primary 
116.28 	medical provider's documentation of medical monitoring and treatment needs;
116.29 	(2) the person is assessed to receive a support range budget of E or H; and
116.30 	(3) the person does not receive community residential services, family residential services, 
116.31 	integrated community supports services, or customized living services.
117.1 	(d) Home care nursing services funded through the budget exception developed under 
117.2 	paragraph (c) must be ordered by a physician, physician assistant, or advanced practice 
117.3 	registered nurse. If the participant chooses home care nursing, the home care nursing services 
117.4 	must be performed by a registered nurse or licensed practical nurse practicing within the 
117.5 	registered nurse's or licensed practical nurse's scope of practice as defined under Minnesota 
117.6 	Statutes, sections 148.171 to 148.285. If after a person's annual reassessment under Minnesota 
117.7 	Statutes, section 256B.0911, any requirements of this paragraph or paragraph (c) are no 
117.8 	longer met, the commissioner must terminate the budget exception.
117.9 	(c) (e) The commissioner of human services may seek all federal authority necessary to 
117.10 	implement this section.
117.11 	(d) (f) The commissioner must ensure that the new waiver service menu and individual 
117.12 	budgets allow people to live in their own home, family home, or any home and 
117.13 	community-based setting of their choice. The commissioner must ensure, within available 
117.14 	resources and subject to state and federal regulations and law, that waiver reimagine does 
117.15 	not result in unintended service disruptions.

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

117.17 	Sec. 67. Laws 2021, First Special Session chapter 7, article 13, section 75, subdivision 6, 
117.18 	as amended by Laws 2024, chapter 108, article 1, section 28, is amended to read:
117.19 		Subd. 6.Online support planning tool. The commissioner must develop an online 
117.20 	support planning and tracking tool for people using disability waiver services that allows 
117.21 	access to the total budget available to the person, the services for which they are eligible, 
117.22 	and the services they have chosen and used. The commissioner must explore operability 
117.23 	options that would facilitate real-time tracking of a person's remaining available budget 
117.24 	throughout the service year. The online support planning tool must provide information in 
117.25 	an accessible format to support the person's informed choice. The commissioner must seek 
117.26 	input from people with disabilities about the online support planning tool prior to its 
117.27 	implementation. The commissioner must implement the online support planning and tracking 
117.28 	tool no later than January 1, 2027.

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

118.1 	Sec. 68. DISABILITY SERVICES TECHNOLOGY AND ADVOCACY EXPANSION 
118.2 	GRANT.
118.3 		Subdivision 1.Establishment. (a) A disability services technology and advocacy 
118.4 	expansion grant is established to:
118.5 	(1) support the expansion of assistive technology and remote support services for people 
118.6 	with disabilities; and
118.7 	(2) strengthen advocacy efforts for individuals with disabilities and the providers who 
118.8 	serve individuals with disabilities.
118.9 	(b) The commissioner of human services must award the grant to an eligible grantee. In 
118.10 	awarding the grant, the commissioner must consult with the commissioner of administration's 
118.11 	System of Technology to Achieve Results (STAR) Program under Minnesota Statutes, 
118.12 	section 16B.055.
118.13 		Subd. 2.Eligible grantee. An eligible grantee must:
118.14 	(1) be a nonprofit organization with a statewide reach;
118.15 	(2) have demonstrated knowledge of various forms of assistive technology and remote 
118.16 	support for people with disabilities; and
118.17 	(3) have proven capacity to provide education and training to multiple constituencies.
118.18 		Subd. 3.Allowable uses of grant money. Grant money must be used to:
118.19 	(1) develop and deliver comprehensive training programs for lead agencies, disability 
118.20 	service providers, schools, employment support agencies, and individuals with disabilities 
118.21 	and their families to ensure effective use of assistive technology and remote support tools. 
118.22 	Training programs must be developed in consultation with the STAR Program to ensure 
118.23 	alignment with national assistive technology standards and best practices. Training must 
118.24 	address specific challenges faced by individuals with disabilities, such as accessibility, 
118.25 	independence, and health monitoring;
118.26 	(2) provide resources and support to advocacy organizations that work with individuals 
118.27 	with disabilities and service providers. Resources and support must be used to promote the 
118.28 	use of assistive technology to increase self-determination and community participation;
118.29 	(3) maintain, distribute, and create accessible resources related to assistive technology 
118.30 	and remote support. Resources must be developed in collaboration with the STAR Program 
118.31 	to reflect current assistive technology tools and guidance that are tailored to Minnesota's 
119.1 	disability community. Materials must be tailored to address the unique needs of individuals 
119.2 	with disabilities and the people and organizations who support individuals with disabilities;
119.3 	(4) conduct research to explore new and emerging assistive technology solutions that 
119.4 	address the evolving needs of individuals with disabilities. The research must emphasize 
119.5 	the role of technology in promoting independence, improving quality of life, and ensuring 
119.6 	safety; and
119.7 	(5) conduct outreach initiatives to engage disability communities, service providers, and 
119.8 	advocacy groups across Minnesota to promote awareness of assistive technology and remote 
119.9 	support services. Outreach initiatives must focus on reaching underserved and rural 
119.10 	populations.
119.11 		Subd. 4.Evaluation and reporting requirements. (a) The grant recipient must submit 
119.12 	an annual report by June 30 each year to the legislative committees with jurisdiction over 
119.13 	disability services. The annual report must include:
119.14 	(1) the number of individuals with disabilities and service providers who received training 
119.15 	during the reporting year;
119.16 	(2) data on the impact of assistive technology and remote support in improving quality 
119.17 	of life, safety, and independence for individuals with disabilities; and
119.18 	(3) recommendations for further advancing technology-driven disability advocacy efforts 
119.19 	based on feedback and research findings.
119.20 	(b) No later than three months after the grant period has ended, a final evaluation must 
119.21 	be submitted to the legislative committees with jurisdiction over disability services to assess 
119.22 	the overall impact on expanding access to assistive technology and remote support, with a 
119.23 	focus on lessons learned and future opportunities for Minnesota's disability communities 
119.24 	and service providers.
119.25 		Subd. 5.Grant period. The grant period under this section is from July 1, 2025, to June 
119.26 	30, 2030.

119.27 	Sec. 69. BUDGET INCREASE FOR CONSUMER-DIRECTED COMMUNITY 
119.28 	SUPPORTS.
 119.29 	Effective January 1, 2026, or upon federal approval, whichever is later, the commissioner 
119.30 	of human services must increase the consumer-directed community support budgets identified 
119.31 	in the waiver plans under Minnesota Statutes, sections 256B.092 and 256B.49, and chapter 
120.1 	256S; and the alternative care program under Minnesota Statutes, section 256B.0913, by 
120.2 	0.13 percent.

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

120.4 	Sec. 70. ENHANCED BUDGET INCREASE FOR CONSUMER-DIRECTED 
120.5 	COMMUNITY SUPPORTS.
 120.6 	Effective January 1, 2026, or upon federal approval, whichever is later, the commissioner 
120.7 	of human services must increase the consumer-directed community supports budget exception 
120.8 	percentage identified in the waiver plans under Minnesota Statutes, sections 256B.092 and 
120.9 	256B.49, and chapter 256S; and the alternative care program under Minnesota Statutes, 
120.10 	section 256B.0913, from 7.5 to 12.5.

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

120.12 	Sec. 71. STIPEND PAYMENTS TO SEIU HEALTHCARE MINNESOTA & IOWA 
120.13 	BARGAINING UNIT MEMBERS.
 120.14 	(a) The commissioner of human services shall issue stipend payments to collective 
120.15 	bargaining unit members as required by the labor agreement between the state of Minnesota 
120.16 	and the Service Employees International Union (SEIU) Healthcare Minnesota & Iowa.
120.17 	(b) The definitions in Minnesota Statutes, section 290.01, apply to this section.
120.18 	(c) For the purposes of this section, "subtraction" has the meaning given in Minnesota 
120.19 	Statutes, section 290.0132, subdivision 1, and the rules in that subdivision apply to this 
120.20 	section.
120.21 	(d) The amount of stipend payments received by SEIU Healthcare Minnesota & Iowa 
120.22 	collective bargaining unit members under this section is a subtraction.
120.23 	(e) The amount of stipend payments received by SEIU Healthcare Minnesota & Iowa 
120.24 	collective bargaining unit members under this section is excluded from income as defined 
120.25 	in Minnesota Statutes, sections 290.0693, subdivision 1, paragraph (i), and 290A.03, 
120.26 	subdivision 3.
120.27 	(f) Notwithstanding any law to the contrary, stipend payments under this section must 
120.28 	not be considered income, assets, or personal property for purposes of determining or 
120.29 	recertifying eligibility for:
120.30 	(1) child care assistance programs under Minnesota Statutes, chapter 142E;
121.1 	(2) general assistance, Minnesota supplemental aid, and food support under Minnesota 
121.2 	Statutes, chapter 256D;
121.3 	(3) housing support under Minnesota Statutes, chapter 256I;
121.4 	(4) the Minnesota family investment program under Minnesota Statutes, chapter 142G; 
121.5 	and
121.6 	(5) economic assistance programs under Minnesota Statutes, chapter 256P.
121.7 	(g) The commissioner of human services must not consider stipend payments under this 
121.8 	section as income or assets under Minnesota Statutes, section 256B.056, subdivision 1a, 
121.9 	paragraph (a); 3; or 3c, or for persons with eligibility determined under Minnesota Statutes, 
121.10 	section 256B.057, subdivision 3, 3a, or 3b.

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

121.12 	Sec. 72. DIRECTION TO COMMISSIONER; COST REPORTING IMPROVEMENT 
121.13 	AND DIRECT CARE STAFF REVIEW.
 121.14 	(a) The commissioner of human services must consult with interested parties and make 
121.15 	recommendations to the legislature to clarify provider cost reporting obligations to promote 
121.16 	more uniform and meaningful data collection under Minnesota Statutes, section 256B.4914. 
121.17 	By February 15, 2026, the commissioner must submit to the chairs and ranking minority 
121.18 	members of the legislative committees with jurisdiction over health and human services 
121.19 	policy and finance draft legislation required to implement the commissioner's 
121.20 	recommendations.
121.21 	(b) The commissioner of human services must consult with interested parties and, based 
121.22 	on the results of the cost reporting completed for calendar year 2026, recommend what, if 
121.23 	any, encumbrance of medical assistance reimbursement is appropriate to support direct care 
121.24 	staff retention and the provision of quality services under Minnesota Statutes, section 
121.25 	256B.4914. By January 15, 2028, the commissioner must submit to the chairs and ranking 
121.26 	minority members of the legislative committees with jurisdiction over health and human 
121.27 	services policy and finance draft legislation required to implement the commissioner's 
121.28 	recommendations.

121.29 	Sec. 73. COMMUNITY FIRST SERVICES AND SUPPORTS REIMBURSEMENT 
121.30 	DURING ACUTE CARE HOSPITAL STAYS.
 121.31 	(a) The commissioner of human services must seek to amend Minnesota's federally 
121.32 	approved community first services and supports program, authorized under United States 
122.1 	Code, title 42, sections 1915(i) and 1915(k), to reimburse for delivery of community first 
122.2 	services and supports under Minnesota Statutes, sections 256B.85 and 256B.851, during 
122.3 	an acute care stay in an acute care hospital setting that does not have the effect of isolating 
122.4 	individuals receiving community first services and supports from the broader community 
122.5 	of individuals not receiving community first services and supports, as permitted under Code 
122.6 	of Federal Regulations, title 42, section 441.530.
122.7 	(b) Reimbursed services must:
122.8 	(1) be identified in an individual's person-centered support plan as required under 
122.9 	Minnesota Statutes, section 256B.0911;
122.10 	(2) be provided to meet the needs of the person that are not met through the provision 
122.11 	of hospital services;
122.12 	(3) not substitute services that the hospital is obligated to provide as required under state 
122.13 	and federal law; and
122.14 	(4) be designed to preserve the person's functional abilities during a hospital stay for 
122.15 	acute care and to ensure smooth transitions between acute care settings and home and 
122.16 	community-based settings.

122.17 	EFFECTIVE DATE. Paragraph (a) is effective the day following final enactment. 
122.18 	Paragraph (b) is effective January 1, 2026, or upon federal approval, whichever is later. The 
122.19 	commissioner of human services shall notify the revisor of statutes when federal approval 
122.20 	is obtained.

122.21 	Sec. 74. POSITIVE SUPPORTS COMPETENCY PROGRAM.
 122.22 	(a) The commissioner shall establish a positive supports competency program with the 
122.23 	money appropriated for this purpose.
122.24 	(b) When establishing the positive supports competency program, the commissioner 
122.25 	must use a community-partner-driven process to:
122.26 	(1) define the core activities associated with effective intervention services at the levels 
122.27 	of positive support specialist, positive support analyst, and positive support professional;
122.28 	(2) create tools providers may use to track whether their positive supports specialists, 
122.29 	positive support analysts, and positive support professionals are competently performing 
122.30 	the core activities associated with effective intervention services;
122.31 	(3) align existing training systems funded through the Department of Human Services 
122.32 	and develop free online modules for competency-based training to prepare positive support 
123.1 	specialists, positive support analysts, and positive support professionals to provide effective 
123.2 	intervention services;
123.3 	(4) assist providers interested in utilizing a competency-based training model to create 
123.4 	a career pathway for the positive support analysts and positive support specialists within 
123.5 	their organizations by using experienced professionals;
123.6 	(5) create written guidelines, stories, and examples for providers that will be placed on 
123.7 	Department of Human Services websites promoting capacity building; and
123.8 	(6) disseminate resources and guidance to providers interested in meeting 
123.9 	competency-based qualifications for positive supports through existing regional networks 
123.10 	of experts, including communities of practice, and develop new avenues for disseminating 
123.11 	these resources and guidance, including through implementation of ECHO models.

123.12 	Sec. 75. DIRECTION TO COMMISSIONER; INTEGRATED COMMUNITY 
123.13 	SUPPORTS CODIFICATION.
 123.14 	(a) The commissioner of human services must develop draft language to codify in 
123.15 	Minnesota Statutes the standards and requirements for integrated community supports as 
123.16 	specified in the federally approved brain injury, community access for disability inclusion, 
123.17 	community alternative care, and developmental disabilities waiver plans.
123.18 	(b) When developing and drafting the proposed legislative language, the commissioner 
123.19 	must consult with interested parties, including the Association of Residential Resources in 
123.20 	Minnesota, the Residential Providers Association of Minnesota, the Minnesota Association 
123.21 	of County Social Service Administrators, and people with disabilities currently or potentially 
123.22 	receiving integrated community supports. The commissioner must ensure that the interested 
123.23 	parties with whom the commissioner consults represent a broad spectrum of active and 
123.24 	potential providers and service recipients. The commissioner's consultation with interested 
123.25 	parties must be transparent and provide the opportunity for meaningful input from active 
123.26 	and potential providers and service recipients.
123.27 	(c) The commissioner must submit the draft legislation to the chairs and ranking minority 
123.28 	members of the legislative committees with jurisdiction over health and human services 
123.29 	policy and finance by January 1, 2026.

124.1 	Sec. 76. DIRECTION TO COMMISSIONER; PROVISIONAL OR TRANSITIONAL 
124.2 	APPROVAL OF INTEGRATED COMMUNITY SERVICES SETTINGS.
 124.3 	(a) The commissioner of human services must develop draft language to improve the 
124.4 	process for approving integrated community supports settings, including a process for issuing 
124.5 	provisional or transitional licenses to allow applicants to obtain an initial approval to operate 
124.6 	prior to securing control of the approved setting. This process must also allow applicants 
124.7 	to change the approved setting during the application review period when needed to ensure 
124.8 	an available setting.
124.9 	(b) The commissioner must submit the draft legislation to the chairs and ranking minority 
124.10 	members of the legislative committees with jurisdiction over health and human services 
124.11 	policy and finance by January 1, 2026.

124.12 	Sec. 77. DIRECTION TO COMMISSIONER; GUIDANCE TO COUNTIES.
 124.13 	Upon receipt of approval from the Centers for Medicare and Medicaid Services, the 
124.14 	commissioner of human services shall provide guidance to counties on the administration 
124.15 	of the family support program under Minnesota Statutes, section 252.32; the consumer 
124.16 	support program under Minnesota Statutes, section 256.476; disability waivers under 
124.17 	Minnesota Statutes, sections 256B.092 and 256B.49; and the community first services and 
124.18 	supports program under Minnesota Statutes, section 256B.85, to clarify that the cost of 
124.19 	adaptive or one-on-one swimming lessons provided to a person younger than 12 years of 
124.20 	age whose disability puts the person at a higher risk of drowning according to the Centers 
124.21 	for Disease Control Vital Statistics System is an allowable use of money.

124.22 	Sec. 78. DIRECTION TO COMMISSIONER; SWIMMING LESSONS COVERED 
124.23 	UNDER DISABILITY WAIVERS.
 124.24 	The commissioner of human services shall include swimming lessons for a participant 
124.25 	younger than 12 years of age whose disability puts the participant at a higher risk of drowning 
124.26 	as a covered service under the disability waivers, including the consumer-directed community 
124.27 	supports option, under Minnesota Statutes, sections 256B.092 and 256B.49.

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

125.1 	Sec. 79. REPEALER.
 125.2 		Subdivision 1.Obsolete home and community-based services licensing 
125.3 	provisions. Minnesota Statutes 2024, section 245A.042, subdivisions 2, 3, and 4, are 
125.4 	repealed.
125.5 		Subd. 2.Direct care provider premiums. Laws 2023, chapter 59, article 3, section 11, 
125.6 	is repealed.
125.7 		Subd. 3.Legislative Task Force on Guardianship. Laws 2024, chapter 127, article 
125.8 	46, section 39, is repealed.

125.9 	ARTICLE 3
125.10 	SUBSTANCE USE DISORDER TREATMENT

125.11 	Section 1. Minnesota Statutes 2024, section 245G.01, subdivision 13b, is amended to 
125.12 	read:
125.13 		Subd. 13b.Guest speaker. (a) "Guest speaker" means an individual who is not an alcohol 
125.14 	and drug counselor qualified according to section 245G.11, subdivision 5; is not qualified 
125.15 	according to the commissioner's list of professionals under section 245G.07, subdivision 
125.16 	3; and who works under the direct observation of an alcohol and drug counselor to present 
125.17 	to clients on topics in which the guest speaker has expertise and that the license holder has 
125.18 	determined to be beneficial to a client's recovery.
125.19 	(b) Tribally licensed programs have autonomy to identify the qualifications of their guest 
125.20 	speakers.

125.21 	EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval, 
125.22 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
125.23 	when federal approval is obtained.

125.24 	Sec. 2. Minnesota Statutes 2024, section 245G.01, is amended by adding a subdivision to 
125.25 	read:
125.26 		Subd. 13d.Individual counseling. "Individual counseling" means professionally led 
125.27 	psychotherapeutic treatment for substance use disorders that is delivered in a one-to-one 
125.28 	setting or in a setting with the client and the client's family and other natural supports.

125.29 	EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval, 
125.30 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
125.31 	when federal approval is obtained.

126.1 	Sec. 3. Minnesota Statutes 2024, section 245G.01, is amended by adding a subdivision to 
126.2 	read:
126.3 		Subd. 20f.Psychoeducation. "Psychoeducation" means the services described in section 
126.4 	245G.07, subdivision 1a, clause (2).

126.5 	EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval, 
126.6 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
126.7 	when federal approval is obtained.

126.8 	Sec. 4. Minnesota Statutes 2024, section 245G.01, is amended by adding a subdivision to 
126.9 	read:
126.10 		Subd. 20g.Psychosocial treatment services. "Psychosocial treatment services" means 
126.11 	the services described in section 245G.07, subdivision 1a.

126.12 	EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval, 
126.13 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
126.14 	when federal approval is obtained.

126.15 	Sec. 5. Minnesota Statutes 2024, section 245G.01, is amended by adding a subdivision to 
126.16 	read:
126.17 		Subd. 20h.Recovery support services. "Recovery support services" means the services 
126.18 	described in section 245G.07, subdivision 2a, paragraph (b), clause (1).

126.19 	EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval, 
126.20 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
126.21 	when federal approval is obtained.

126.22 	Sec. 6. Minnesota Statutes 2024, section 245G.01, is amended by adding a subdivision to 
126.23 	read:
126.24 		Subd. 26a.Treatment coordination. "Treatment coordination" means the services 
126.25 	described in section 245G.07, subdivision 1b.

126.26 	EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval, 
126.27 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
126.28 	when federal approval is obtained.

127.1 	Sec. 7. Minnesota Statutes 2024, section 245G.02, subdivision 2, is amended to read:
127.2 		Subd. 2.Exemption from license requirement. This chapter does not apply to a county 
127.3 	or recovery community organization that is providing a service for which the county or 
127.4 	recovery community organization is an eligible vendor under section 254B.05. This chapter 
127.5 	does not apply to an organization whose primary functions are information, referral, 
127.6 	diagnosis, case management, and assessment for the purposes of client placement, education, 
127.7 	support group services, or self-help programs. This chapter does not apply to the activities 
127.8 	of a licensed professional in private practice. A license holder providing the initial set of 
127.9 	substance use disorder services allowable under section 254A.03, subdivision 3, paragraph 
127.10 	(c), to an individual referred to a licensed nonresidential substance use disorder treatment 
127.11 	program after a positive screen for alcohol or substance misuse is exempt from sections 
127.12 	245G.05; 245G.06, subdivisions 1, 1a, and 4; 245G.07, subdivisions 1, paragraph (a), clauses 
127.13 	(2) to (4), and 2, clauses (1) to (7) subdivision 1a, clause (2); and 245G.17.

127.14 	EFFECTIVE DATE. This section is effective July 1, 2026.

127.15 	Sec. 8. Minnesota Statutes 2024, section 245G.05, subdivision 1, is amended to read:
127.16 		Subdivision 1.Comprehensive assessment. (a) A comprehensive assessment of the 
127.17 	client's substance use disorder must be administered face-to-face by an alcohol and drug 
127.18 	counselor within five calendar days from the day of service initiation for a residential 
127.19 	program or by the end of the fifth day on which a treatment service is provided in a 
127.20 	nonresidential program. The number of days to complete the comprehensive assessment 
127.21 	excludes the day of service initiation.
127.22 	(b) A comprehensive assessment must be administered by:
127.23 	(1) an alcohol and drug counselor;
127.24 	(2) a mental health professional who meets the qualifications under section 245I.04, 
127.25 	subdivision 2, practices within the scope of their professional licensure, and has training in 
127.26 	addiction, co-occurring disorders, and substance use disorder diagnosis and treatment 
127.27 	according to the requirements in section 245G.13, subdivision 2, paragraph (f);
127.28 	(3) a clinical trainee who meets the qualifications under section 245I.04, subdivision 6, 
127.29 	practicing under the supervision of a mental health professional who meets the requirements 
127.30 	of clause (2); or
127.31 	(4) an advanced practice registered nurse as defined in section 148.171, subdivision 3, 
127.32 	who practices within the scope of their professional licensure and has training in addiction, 
128.1 	co-occurring disorders, and substance use disorder diagnosis and treatment according to 
128.2 	the requirements in section 245G.13, subdivision 2, paragraph (f).
128.3 	(c) If the comprehensive assessment is not completed within the required time frame, 
128.4 	the person-centered reason for the delay and the planned completion date must be documented 
128.5 	in the client's file. The comprehensive assessment is complete upon a qualified staff member's 
128.6 	dated signature. If the client received a comprehensive assessment that authorized the 
128.7 	treatment service, an alcohol and drug counselor a staff member qualified under paragraph 
128.8 	(b) may use the comprehensive assessment for requirements of this subdivision but must 
128.9 	document a review of the comprehensive assessment and update the comprehensive 
128.10 	assessment as clinically necessary to ensure compliance with this subdivision within 
128.11 	applicable timelines. An alcohol and drug counselor A staff member qualified under 
128.12 	paragraph (b) must sign and date the comprehensive assessment review and update.

128.13 	Sec. 9. Minnesota Statutes 2024, section 245G.07, subdivision 1, is amended to read:
128.14 		Subdivision 1.Treatment service. (a) A licensed residential treatment program must 
128.15 	offer the treatment services in clauses (1) to (5) subdivisions 1a and 1b and may offer the 
128.16 	treatment services in subdivision 2 to each client, unless clinically inappropriate and the 
128.17 	justifying clinical rationale is documented. A nonresidential The treatment program must 
128.18 	offer all treatment services in clauses (1) to (5) and document in the individual treatment 
128.19 	plan the specific services for which a client has an assessed need and the plan to provide 
128.20 	the services:.
128.21 	(1) individual and group counseling to help the client identify and address needs related 
128.22 	to substance use and develop strategies to avoid harmful substance use after discharge and 
128.23 	to help the client obtain the services necessary to establish a lifestyle free of the harmful 
128.24 	effects of substance use disorder;
128.25 	(2) client education strategies to avoid inappropriate substance use and health problems 
128.26 	related to substance use and the necessary lifestyle changes to regain and maintain health. 
128.27 	Client education must include information on tuberculosis education on a form approved 
128.28 	by the commissioner, the human immunodeficiency virus according to section 245A.19, 
128.29 	other sexually transmitted diseases, drug and alcohol use during pregnancy, and hepatitis;
128.30 	(3) a service to help the client integrate gains made during treatment into daily living 
128.31 	and to reduce the client's reliance on a staff member for support;
128.32 	(4) a service to address issues related to co-occurring disorders, including client education 
128.33 	on symptoms of mental illness, the possibility of comorbidity, and the need for continued 
129.1 	medication compliance while recovering from substance use disorder. A group must address 
129.2 	co-occurring disorders, as needed. When treatment for mental health problems is indicated, 
129.3 	the treatment must be integrated into the client's individual treatment plan; and
129.4 	(5) treatment coordination provided one-to-one by an individual who meets the staff 
129.5 	qualifications in section 245G.11, subdivision 7. Treatment coordination services include:
129.6 	(i) assistance in coordination with significant others to help in the treatment planning 
129.7 	process whenever possible;
129.8 	(ii) assistance in coordination with and follow up for medical services as identified in 
129.9 	the treatment plan;
129.10 	(iii) facilitation of referrals to substance use disorder services as indicated by a client's 
129.11 	medical provider, comprehensive assessment, or treatment plan;
129.12 	(iv) facilitation of referrals to mental health services as identified by a client's 
129.13 	comprehensive assessment or treatment plan;
129.14 	(v) assistance with referrals to economic assistance, social services, housing resources, 
129.15 	and prenatal care according to the client's needs;
129.16 	(vi) life skills advocacy and support accessing treatment follow-up, disease management, 
129.17 	and education services, including referral and linkages to long-term services and supports 
129.18 	as needed; and
129.19 	(vii) documentation of the provision of treatment coordination services in the client's 
129.20 	file.
129.21 	(b) A treatment service provided to a client must be provided according to the individual 
129.22 	treatment plan and must consider cultural differences and special needs of a client.
129.23 	(c) A supportive service alone does not constitute a treatment service. Supportive services 
129.24 	include:
129.25 	(1) milieu management or supervising or monitoring clients without also providing a 
129.26 	treatment service identified in subdivision 1a, 1b, or 2a;
129.27 	(2) transporting clients;
129.28 	(3) waiting with clients for appointments at social service agencies, court hearings, and 
129.29 	similar activities; and
129.30 	(4) collecting urinalysis samples.
130.1 	(d) A treatment service provided in a group setting must be provided in a cohesive 
130.2 	manner and setting that allows every client receiving the service to interact and receive the 
130.3 	same service at the same time.

130.4 	EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval, 
130.5 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
130.6 	when federal approval is obtained.

130.7 	Sec. 10. Minnesota Statutes 2024, section 245G.07, is amended by adding a subdivision 
130.8 	to read:
130.9 		Subd. 1a.Psychosocial treatment service. Psychosocial treatment services must be 
130.10 	provided according to the hours identified in section 254B.19 for the ASAM level of care 
130.11 	provided to the client. A license holder must provide the following psychosocial treatment 
130.12 	services as a part of the client's individual treatment:
130.13 	(1) counseling services that provide a client with professional assistance in managing 
130.14 	substance use disorder and co-occurring conditions, either individually or in a group setting. 
130.15 	Counseling must:
130.16 	(i) use evidence-based techniques to help a client modify behavior, overcome obstacles, 
130.17 	and achieve and sustain recovery through techniques such as active listening, guidance, 
130.18 	discussion, feedback, and clarification;
130.19 	(ii) help the client to identify and address needs related to substance use, develop 
130.20 	strategies to avoid harmful substance use, and establish a lifestyle free of the harmful effects 
130.21 	of substance use disorder; and
130.22 	(iii) work to improve well-being and mental health, resolve or mitigate symptomatic 
130.23 	behaviors, beliefs, compulsions, thoughts, and emotions, and enhance relationships and 
130.24 	social skills, while addressing client-centered psychological and emotional needs; and
130.25 	(2) psychoeducation services to provide a client with information about substance use 
130.26 	and co-occurring conditions, either individually or in a group setting. Psychoeducation 
130.27 	includes structured presentations, interactive discussions, and practical exercises to help 
130.28 	clients understand and manage their conditions effectively. Topics include but are not limited 
130.29 	to:
130.30 	(i) the causes of substance use disorder and co-occurring disorders;
130.31 	(ii) behavioral techniques that help a client change behaviors, thoughts, and feelings;
131.1 	(iii) the importance of maintaining mental health, including understanding symptoms 
131.2 	of mental illness;
131.3 	(iv) medications for addiction and psychiatric disorders and the importance of medication 
131.4 	adherence;
131.5 	(v) the importance of maintaining physical health, health-related risk factors associated 
131.6 	with substance use disorder, and specific health education on tuberculosis, HIV, other 
131.7 	sexually transmitted diseases, drug and alcohol use during pregnancy, and hepatitis; and
131.8 	(vi) harm-reduction strategies.

131.9 	EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval, 
131.10 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
131.11 	when federal approval is obtained.

131.12 	Sec. 11. Minnesota Statutes 2024, section 245G.07, is amended by adding a subdivision 
131.13 	to read:
131.14 		Subd. 1b.Treatment coordination. (a) Treatment coordination must be provided to a 
131.15 	single client by an individual who meets the staff qualifications in section 245G.11, 
131.16 	subdivision 7. Treatment coordination services include:
131.17 	(1) coordinating directly with others involved in the client's treatment and recovery, 
131.18 	including the referral source, family or natural supports, social services agencies, and external 
131.19 	care providers;
131.20 	(2) providing clients with training and facilitating connections to community resources 
131.21 	that support recovery;
131.22 	(3) assisting clients in obtaining necessary resources and services such as financial 
131.23 	assistance, housing, food, clothing, medical care, education, harm reduction services, 
131.24 	vocational support, and recreational services that promote recovery;
131.25 	(4) helping clients connect and engage with self-help support groups and expand social 
131.26 	support networks with family, friends, and organizations; and
131.27 	(5) assisting clients in transitioning between levels of care, including providing direct 
131.28 	connections to ensure continuity of care.
131.29 	(b) Treatment coordination does not include coordinating services or communicating 
131.30 	with staff members within the licensed program.
132.1 	(c) Treatment coordination may be provided in a setting with the individual client and 
132.2 	others involved in the client's treatment and recovery.

132.3 	EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval, 
132.4 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
132.5 	when federal approval is obtained.

132.6 	Sec. 12. Minnesota Statutes 2024, section 245G.07, is amended by adding a subdivision 
132.7 	to read:
132.8 		Subd. 2a.Ancillary treatment service. (a) A license holder may provide ancillary 
132.9 	services in addition to the hours of psychosocial treatment services identified in section 
132.10 	254B.19 for the ASAM level of care provided to the client.
132.11 	(b) A license holder may provide the following ancillary treatment services as a part of 
132.12 	the client's individual treatment:
132.13 	(1) recovery support services provided individually or in a group setting, that include:
132.14 	(i) supporting clients in restoring daily living skills, such as health and health care 
132.15 	navigation and self-care to enhance personal well-being;
132.16 	(ii) providing resources and assistance to help clients restore life skills, including effective 
132.17 	parenting, financial management, pro-social behavior, education, employment, and nutrition;
132.18 	(iii) assisting clients in restoring daily functioning and routines affected by substance 
132.19 	use and supporting them in developing skills for successful community integration; and
132.20 	(iv) helping clients respond to or avoid triggers that threaten their community stability, 
132.21 	assisting the client in identifying potential crises and developing a plan to address them, 
132.22 	and providing support to restore the client's stability and functioning; and
132.23 	(2) peer recovery support services provided according to sections 254B.05, subdivision 
132.24 	5, and 254B.052.

132.25 	EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval, 
132.26 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
132.27 	when federal approval is obtained.

132.28 	Sec. 13. Minnesota Statutes 2024, section 245G.07, subdivision 3, is amended to read:
132.29 		Subd. 3.Counselors Treatment service providers. (a) All treatment services, except 
132.30 	peer recovery support services and treatment coordination, must be provided by an alcohol 
132.31 	and drug counselor qualified according to section 245G.11, subdivision 5, unless the
133.1 	individual providing the service is specifically qualified according to the accepted credential 
133.2 	required to provide the service. The commissioner shall maintain a current list of 
133.3 	professionals qualified to provide treatment services.
133.4 	(b) Psychosocial treatment services must be provided by an alcohol and drug counselor 
133.5 	qualified according to section 245G.11, subdivision 5, unless the individual providing the 
133.6 	service is specifically qualified according to the accepted credential required to provide the 
133.7 	service. The commissioner shall maintain a current list of professionals qualified to provide 
133.8 	psychosocial treatment services.
133.9 	(c) Treatment coordination must be provided by a treatment coordinator qualified 
133.10 	according to section 245G.11, subdivision 7.
133.11 	(d) Recovery support services must be provided by a behavioral health practitioner 
133.12 	qualified according to section 245G.11, subdivision 12.
133.13 	(e) Peer recovery support services must be provided by a recovery peer qualified 
133.14 	according to section 245I.04, subdivision 18.

133.15 	EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval, 
133.16 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
133.17 	when federal approval is obtained.

133.18 	Sec. 14. Minnesota Statutes 2024, section 245G.07, subdivision 4, is amended to read:
133.19 		Subd. 4.Location of service provision. (a) The license holder must provide all treatment 
133.20 	services a client receives at one of the license holder's substance use disorder treatment 
133.21 	licensed locations or at a location allowed under paragraphs (b) to (f). If the services are 
133.22 	provided at the locations in paragraphs (b) to (d), the license holder must document in the 
133.23 	client record the location services were provided.
133.24 	(b) The license holder may provide nonresidential individual treatment services at a 
133.25 	client's home or place of residence.
133.26 	(c) If the license holder provides treatment services by telehealth, the services must be 
133.27 	provided according to this paragraph:
133.28 	(1) the license holder must maintain a licensed physical location in Minnesota where 
133.29 	the license holder must offer all treatment services in subdivision 1, paragraph (a), clauses 
133.30 	(1) to (4), 1a physically in-person to each client;
133.31 	(2) the license holder must meet all requirements for the provision of telehealth in sections 
133.32 	254B.05, subdivision 5, paragraph (f), and 256B.0625, subdivision 3b. The license holder 
134.1 	must document all items in section 256B.0625, subdivision 3b, paragraph (c), for each client 
134.2 	receiving services by telehealth, regardless of payment type or whether the client is a medical 
134.3 	assistance enrollee;
134.4 	(3) the license holder may provide treatment services by telehealth to clients individually;
134.5 	(4) the license holder may provide treatment services by telehealth to a group of clients 
134.6 	that are each in a separate physical location;
134.7 	(5) the license holder must not provide treatment services remotely by telehealth to a 
134.8 	group of clients meeting together in person, unless permitted under clause (7);
134.9 	(6) clients and staff may join an in-person group by telehealth if a staff member qualified 
134.10 	to provide the treatment service is physically present with the group of clients meeting 
134.11 	together in person; and
134.12 	(7) the qualified professional providing a residential group treatment service by telehealth 
134.13 	must be physically present on-site at the licensed residential location while the service is 
134.14 	being provided. If weather conditions or short-term illness prohibit a qualified professional 
134.15 	from traveling to the residential program and another qualified professional is not available 
134.16 	to provide the service, a qualified professional may provide a residential group treatment 
134.17 	service by telehealth from a location away from the licensed residential location. In such 
134.18 	circumstances, the license holder must ensure that a qualified professional does not provide 
134.19 	a residential group treatment service by telehealth from a location away from the licensed 
134.20 	residential location for more than one day at a time, must ensure that a staff person who 
134.21 	qualifies as a paraprofessional is physically present with the group of clients, and must 
134.22 	document the reason for providing the remote telehealth service in the records of clients 
134.23 	receiving the service. The license holder must document the dates that residential group 
134.24 	treatment services were provided by telehealth from a location away from the licensed 
134.25 	residential location in a central log and must provide the log to the commissioner upon 
134.26 	request.
134.27 	(d) The license holder may provide the additional ancillary treatment services under 
134.28 	subdivision 2, clauses (2) to (6) and (8), 2a away from the licensed location at a suitable 
134.29 	location appropriate to the treatment service.
134.30 	(e) Upon written approval from the commissioner for each satellite location, the license 
134.31 	holder may provide nonresidential treatment services at satellite locations that are in a 
134.32 	school, jail, or nursing home. A satellite location may only provide services to students of 
134.33 	the school, inmates of the jail, or residents of the nursing home. Schools, jails, and nursing 
134.34 	homes are exempt from the licensing requirements in section 245A.04, subdivision 2a, to 
135.1 	document compliance with building codes, fire and safety codes, health rules, and zoning 
135.2 	ordinances.
135.3 	(f) The commissioner may approve other suitable locations as satellite locations for 
135.4 	nonresidential treatment services. The commissioner may require satellite locations under 
135.5 	this paragraph to meet all applicable licensing requirements. The license holder may not 
135.6 	have more than two satellite locations per license under this paragraph.
135.7 	(g) The license holder must provide the commissioner access to all files, documentation, 
135.8 	staff persons, and any other information the commissioner requires at the main licensed 
135.9 	location for all clients served at any location under paragraphs (b) to (f).
135.10 	(h) Notwithstanding sections 245A.65, subdivision 2, and 626.557, subdivision 14, a 
135.11 	program abuse prevention plan is not required for satellite or other locations under paragraphs 
135.12 	(b) to (e). An individual abuse prevention plan is still required for any client that is a 
135.13 	vulnerable adult as defined in section 626.5572, subdivision 21.

135.14 	EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval, 
135.15 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
135.16 	when federal approval is obtained.

135.17 	Sec. 15. Minnesota Statutes 2024, section 245G.11, subdivision 6, is amended to read:
135.18 		Subd. 6.Paraprofessionals. A paraprofessional must have knowledge of client rights, 
135.19 	according to section 148F.165, and staff member responsibilities. A paraprofessional may 
135.20 	not make decisions to admit, transfer, or discharge a client but may perform tasks related 
135.21 	to intake and orientation. A paraprofessional may be the responsible for the delivery of 
135.22 	treatment service staff member according to section 245G.10, subdivision 3. A 
135.23 	paraprofessional must not provide a treatment service unless qualified to do so according 
135.24 	to section 245G.07, subdivision 3.

135.25 	Sec. 16. Minnesota Statutes 2024, section 245G.11, is amended by adding a subdivision 
135.26 	to read:
135.27 		Subd. 12.Behavioral health practitioners. (a) A behavioral health practitioner must 
135.28 	meet the mental health practitioner qualifications in section 245I.04, subdivision 4.
135.29 	(b) A behavioral health practitioner working within a substance use disorder treatment 
135.30 	program licensed under this chapter has the following scope of practice:
135.31 	(1) a behavioral health practitioner may provide clients with recovery support services, 
135.32 	as defined in section 245G.07, subdivision 2a, paragraph (b), clause (1); and
136.1 	(2) a behavioral health practitioner must not provide treatment supervision to other staff 
136.2 	persons.
136.3 	(c) A behavioral health practitioner working within a substance use disorder treatment 
136.4 	program licensed under this chapter must receive at least one hour of supervision per month 
136.5 	on individual service delivery from an alcohol and drug counselor or a mental health 
136.6 	professional who has substance use treatment and assessments within the scope of their 
136.7 	practice.

136.8 	EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval, 
136.9 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
136.10 	when federal approval is obtained.

136.11 	Sec. 17. Minnesota Statutes 2024, section 245G.22, subdivision 11, is amended to read:
136.12 		Subd. 11.Waiting list. An opioid treatment program must have a waiting list system. 
136.13 	If the person seeking admission cannot be admitted within 14 days of the date of application, 
136.14 	each person seeking admission must be placed on the waiting list, unless the person seeking 
136.15 	admission is assessed by the program and found ineligible for admission according to this 
136.16 	chapter and Code of Federal Regulations, title 42, part 1, subchapter A, section 8.12 (e), 
136.17 	and title 45, parts 160 to 164. The waiting list must assign a unique client identifier for each 
136.18 	person seeking treatment while awaiting admission. A person seeking admission on a waiting 
136.19 	list who receives no services under section 245G.07, subdivision 1 1a or 1b, must not be 
136.20 	considered a client as defined in section 245G.01, subdivision 9.

136.21 	EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval, 
136.22 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
136.23 	when federal approval is obtained.

136.24 	Sec. 18. Minnesota Statutes 2024, section 245G.22, subdivision 15, is amended to read:
136.25 		Subd. 15.Nonmedication treatment services; documentation. (a) The program must 
136.26 	offer at least 50 consecutive minutesfour units of individual or group therapy treatment 
136.27 	services as defined in section 245G.07, subdivision 1, paragraph (a) 1a, clause (1), per week, 
136.28 	for the first ten weeks following the day of service initiation, and at least 50 consecutive 
136.29 	minutesone unit per month thereafter. As clinically appropriate, the program may offer 
136.30 	these services cumulatively and not consecutively in increments of no less than 15 minutes 
136.31 	over the required time period, and for a total of 60 minutes of treatment services over the 
136.32 	time period, and must document the reason for providing services cumulatively in the client's 
136.33 	record. The program may offer additional levels of service when deemed clinically necessary.
137.1 	(b) Notwithstanding the requirements of comprehensive assessments in section 245G.05, 
137.2 	the assessment must be completed within 21 days from the day of service initiation.

137.3 	EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval, 
137.4 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
137.5 	when federal approval is obtained.

137.6 	Sec. 19. Minnesota Statutes 2024, section 254A.19, subdivision 4, is amended to read:
137.7 		Subd. 4.Civil commitments. For the purposes of determining level of care, a 
137.8 	comprehensive assessment does not need to be completed for an individual being committed 
137.9 	as a chemically dependent person, as defined in section 253B.02, and for the duration of a 
137.10 	civil commitment under section 253B.09 or 253B.095 in order for a county the individual
137.11 	to access be eligible for the behavioral health fund under section 254B.04. The county
137.12 	commissioner must determine if the individual meets the financial eligibility requirements 
137.13 	for the behavioral health fund under section 254B.04.

137.14 	EFFECTIVE DATE. This section is effective July 1, 2026.

137.15 	Sec. 20. Minnesota Statutes 2024, section 254B.01, subdivision 10, is amended to read:
137.16 		Subd. 10.Skilled Psychosocial treatment services. "Skilled Psychosocial treatment 
137.17 	services" includes the treatment services described in section 245G.07, subdivisions 1, 
137.18 	paragraph (a), clauses (1) to (4), and 2, clauses (1) to (6). Skilled subdivision 1a. Psychosocial
137.19 	treatment services must be provided by qualified professionals as identified in section 
137.20 	245G.07, subdivision 3, paragraph (b).

137.21 	EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval, 
137.22 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
137.23 	when federal approval is obtained.

137.24 	Sec. 21. Minnesota Statutes 2024, section 254B.02, subdivision 5, is amended to read:
137.25 		Subd. 5.Local agency Tribal allocation. The commissioner may make payments to 
137.26 	local agencies Tribal Nation servicing agencies from money allocated under this section to 
137.27 	support individuals with substance use disorders and determine eligibility for behavioral 
137.28 	health fund payments. The payment must not be less than 133 percent of the local agency
137.29 	Tribal Nations payment for the fiscal year ending June 30, 2009, adjusted in proportion to 
137.30 	the statewide change in the appropriation for this chapter.

137.31 	EFFECTIVE DATE. This section is effective July 1, 2026.

138.1 	Sec. 22. Minnesota Statutes 2024, section 254B.03, subdivision 1, is amended to read:
138.2 		Subdivision 1.Local agency duties Financial eligibility determinations. (a) Every 
138.3 	local agency The commissioner of human services or Tribal Nation servicing agencies must 
138.4 	determine financial eligibility for substance use disorder services and provide substance 
138.5 	use disorder services to persons residing within its jurisdiction who meet criteria established 
138.6 	by the commissioner. Substance use disorder money must be administered by the local 
138.7 	agencies according to law and rules adopted by the commissioner under sections 14.001 to 
138.8 	14.69.
138.9 	(b) In order to contain costs, the commissioner of human services shall select eligible 
138.10 	vendors of substance use disorder services who can provide economical and appropriate 
138.11 	treatment. Unless the local agency is a social services department directly administered by 
138.12 	a county or human services board, the local agency shall not be an eligible vendor under 
138.13 	section 254B.05. The commissioner may approve proposals from county boards to provide 
138.14 	services in an economical manner or to control utilization, with safeguards to ensure that 
138.15 	necessary services are provided. If a county implements a demonstration or experimental 
138.16 	medical services funding plan, the commissioner shall transfer the money as appropriate.
138.17 	(c) An individual may choose to obtain a comprehensive assessment as provided in 
138.18 	section 245G.05. Individuals obtaining a comprehensive assessment may access any enrolled 
138.19 	provider that is licensed to provide the level of service authorized pursuant to section 
138.20 	254A.19, subdivision 3. If the individual is enrolled in a prepaid health plan, the individual 
138.21 	must comply with any provider network requirements or limitations.
138.22 	(d) Beginning July 1, 2022, local agencies shall not make placement location 
138.23 	determinations.

138.24 	EFFECTIVE DATE. This section is effective July 1, 2026.

138.25 	Sec. 23. Minnesota Statutes 2024, section 254B.03, subdivision 3, is amended to read:
138.26 		Subd. 3.Local agencies Counties to pay state for county share. Local agencies
138.27 	Counties shall pay the state for the county share of the services authorized by the local 
138.28 	agency commissioner, except when the payment is made according to section 254B.09, 
138.29 	subdivision 8.

138.30 	EFFECTIVE DATE. This section is effective July 1, 2026.

139.1 	Sec. 24. Minnesota Statutes 2024, section 254B.04, subdivision 1a, is amended to read:
139.2 		Subd. 1a.Client eligibility. (a) Persons eligible for benefits under Code of Federal 
139.3 	Regulations, title 25, part 20, who meet the income standards of section 256B.056, 
139.4 	subdivision 4, and are not enrolled in medical assistance, are entitled to behavioral health 
139.5 	fund services. State money appropriated for this paragraph must be placed in a separate 
139.6 	account established for this purpose.
139.7 	(b) Persons with dependent children who are determined to be in need of substance use 
139.8 	disorder treatment pursuant to an assessment under section 260E.20, subdivision 1, or in 
139.9 	need of chemical dependency treatment pursuant to a case plan under section 260C.201, 
139.10 	subdivision 6, or 260C.212, shall be assisted by the local agency commissioner to access 
139.11 	needed treatment services. Treatment services must be appropriate for the individual or 
139.12 	family, which may include long-term care treatment or treatment in a facility that allows 
139.13 	the dependent children to stay in the treatment facility. The county shall pay for out-of-home 
139.14 	placement costs, if applicable.
139.15 	(c) Notwithstanding paragraph (a), any person enrolled in medical assistance or 
139.16 	MinnesotaCare is eligible for room and board services under section 254B.05, subdivision 
139.17 	5, paragraph (b), clause (9).
139.18 	(d) A client is eligible to have substance use disorder treatment paid for with funds from 
139.19 	the behavioral health fund when the client:
139.20 	(1) is eligible for MFIP as determined under chapter 142G;
139.21 	(2) is eligible for medical assistance as determined under Minnesota Rules, parts 
139.22 	9505.0010 to 9505.0150 9505.140;
139.23 	(3) is eligible for general assistance, general assistance medical care, or work readiness 
139.24 	as determined under Minnesota Rules, parts 9500.1200 to 9500.1318 9500.1272; or
139.25 	(4) has income that is within current household size and income guidelines for entitled 
139.26 	persons, as defined in this subdivision and subdivision 7.
139.27 	(e) Clients who meet the financial eligibility requirement in paragraph (a) and who have 
139.28 	a third-party payment source are eligible for the behavioral health fund if the third-party 
139.29 	payment source pays less than 100 percent of the cost of treatment services for eligible 
139.30 	clients.
139.31 	(f) A client is ineligible to have substance use disorder treatment services paid for with 
139.32 	behavioral health fund money if the client:
140.1 	(1) has an income that exceeds current household size and income guidelines for entitled 
140.2 	persons as defined in this subdivision and subdivision 7; or
140.3 	(2) has an available third-party payment source that will pay the total cost of the client's 
140.4 	treatment.
140.5 	(g) A client who is disenrolled from a state prepaid health plan during a treatment episode 
140.6 	is eligible for continued treatment service that is paid for by the behavioral health fund until 
140.7 	the treatment episode is completed or the client is re-enrolled in a state prepaid health plan 
140.8 	if the client:
140.9 	(1) continues to be enrolled in MinnesotaCare, medical assistance, or general assistance 
140.10 	medical care; or
140.11 	(2) is eligible according to paragraphs (a) and (b) and is determined eligible by a local 
140.12 	agency the commissioner under section 254B.04.
140.13 	(h) When a county commits a client under chapter 253B to a regional treatment center 
140.14 	for substance use disorder services and the client is ineligible for the behavioral health fund, 
140.15 	the county is responsible for the payment to the regional treatment center according to 
140.16 	section 254B.05, subdivision 4.
140.17 	(i) Persons enrolled in MinnesotaCare are eligible for room and board services when 
140.18 	provided through intensive residential treatment services and residential crisis services under 
140.19 	section 256B.0622.
140.20 	(j) A person is eligible for one 60-consecutive-calendar-day period per year. A person 
140.21 	may submit a request for additional eligibility to the commissioner. A person denied 
140.22 	additional eligibility under this paragraph may request a state agency hearing under section 
140.23 	256.045.

140.24 	EFFECTIVE DATE.  This section is effective July 1, 2026, except the amendments to 
140.25 	paragraph (d) are effective July 1, 2025.

140.26 	Sec. 25. Minnesota Statutes 2024, section 254B.04, subdivision 5, is amended to read:
140.27 		Subd. 5.Local agency Commissioner responsibility to provide administrative
140.28 	services. The local agency commissioner of human services may employ individuals to 
140.29 	conduct administrative activities and facilitate access to substance use disorder treatment 
140.30 	services.

140.31 	EFFECTIVE DATE. This section is effective July 1, 2026.

141.1 	Sec. 26. Minnesota Statutes 2024, section 254B.04, subdivision 6, is amended to read:
141.2 		Subd. 6.Local agency Commissioner to determine client financial eligibility. (a) 
141.3 	The local agency commissioner shall determine a client's financial eligibility for the 
141.4 	behavioral health fund according to section 254B.04, subdivision 1a, with the income 
141.5 	calculated prospectively for one year from the date of request. The local agency commissioner
141.6 	shall pay for eligible clients according to chapter 256G. Client eligibility must be determined 
141.7 	using only forms prescribed by the commissioner unless the local agency has a reasonable 
141.8 	basis for believing that the information submitted on a form is false. To determine a client's 
141.9 	eligibility, the local agency commissioner must determine the client's income, the size of 
141.10 	the client's household, the availability of a third-party payment source, and a responsible 
141.11 	relative's ability to pay for the client's substance use disorder treatment.
141.12 	(b) A client who is a minor child must not be deemed to have income available to pay 
141.13 	for substance use disorder treatment, unless the minor child is responsible for payment under 
141.14 	section 144.347 for substance use disorder treatment services sought under section 144.343, 
141.15 	subdivision 1.
141.16 	(c) The local agency commissioner must determine the client's household size as follows:
141.17 	(1) if the client is a minor child, the household size includes the following persons living 
141.18 	in the same dwelling unit:
141.19 	(i) the client;
141.20 	(ii) the client's birth or adoptive parents; and
141.21 	(iii) the client's siblings who are minors; and
141.22 	(2) if the client is an adult, the household size includes the following persons living in 
141.23 	the same dwelling unit:
141.24 	(i) the client;
141.25 	(ii) the client's spouse;
141.26 	(iii) the client's minor children; and
141.27 	(iv) the client's spouse's minor children.
141.28 	For purposes of this paragraph, household size includes a person listed in clauses (1) and 
141.29 	(2) who is in an out-of-home placement if a person listed in clause (1) or (2) is contributing 
141.30 	to the cost of care of the person in out-of-home placement.
142.1 	(d) The local agency commissioner must determine the client's current prepaid health 
142.2 	plan enrollment, the availability of a third-party payment source, including the availability 
142.3 	of total payment, partial payment, and amount of co-payment.
142.4 	(e) The local agency must provide the required eligibility information to the department 
142.5 	in the manner specified by the department.
142.6 	(f) (e) The local agency commissioner shall require the client and policyholder to 
142.7 	conditionally assign to the department the client and policyholder's rights and the rights of 
142.8 	minor children to benefits or services provided to the client if the department is required to 
142.9 	collect from a third-party pay source.
142.10 	(g) (f) The local agency commissioner must redetermine determine a client's eligibility 
142.11 	for the behavioral health fund every 12 months for a 60-consecutive-calendar-day period 
142.12 	per calendar year.
142.13 	(h) (g) A client, responsible relative, and policyholder must provide income or wage 
142.14 	verification, household size verification, and must make an assignment of third-party payment 
142.15 	rights under paragraph (f) (e). If a client, responsible relative, or policyholder does not 
142.16 	comply with the provisions of this subdivision, the client is ineligible for behavioral health 
142.17 	fund payment for substance use disorder treatment, and the client and responsible relative 
142.18 	must be obligated to pay for the full cost of substance use disorder treatment services 
142.19 	provided to the client.

142.20 	EFFECTIVE DATE. This section is effective July 1, 2026.

142.21 	Sec. 27. Minnesota Statutes 2024, section 254B.04, subdivision 6a, is amended to read:
142.22 		Subd. 6a.Span of eligibility. The local agency commissioner must enter the financial 
142.23 	eligibility span within five business days of a request. If the comprehensive assessment is 
142.24 	completed within the timelines required under chapter 245G, then the span of eligibility 
142.25 	must begin on the date services were initiated. If the comprehensive assessment is not 
142.26 	completed within the timelines required under chapter 245G, then the span of eligibility 
142.27 	must begin on the date the comprehensive assessment was completed.

142.28 	EFFECTIVE DATE. This section is effective July 1, 2026.

142.29 	Sec. 28. Minnesota Statutes 2024, section 254B.05, subdivision 1, is amended to read:
142.30 		Subdivision 1.Licensure or certification required. (a) Programs licensed by the 
142.31 	commissioner are eligible vendors. Hospitals may apply for and receive licenses to be 
142.32 	eligible vendors, notwithstanding the provisions of section 245A.03. American Indian 
143.1 	programs that provide substance use disorder treatment, extended care, transitional residence, 
143.2 	or outpatient treatment services, and are licensed by tribal government are eligible vendors.
143.3 	(b) A licensed professional in private practice as defined in section 245G.01, subdivision 
143.4 	17, who meets the requirements of section 245G.11, subdivisions 1 and 4, is an eligible 
143.5 	vendor of a comprehensive assessment provided according to section 254A.19, subdivision 
143.6 	3, and treatment services provided according to sections 245G.06 and 245G.07, subdivision 
143.7 	1, paragraphs (a), clauses (1) to (5), and (b); and subdivision 2, clauses (1) to (6). subdivisions 
143.8 	1, 1a, and 1b.
143.9 	(c) A county is an eligible vendor for a comprehensive assessment when provided by 
143.10 	an individual who meets the staffing credentials of section 245G.11, subdivisions 1 and 5, 
143.11 	and completed according to the requirements of section 254A.19, subdivision 3. A county 
143.12 	is an eligible vendor of care treatment coordination services when provided by an individual 
143.13 	who meets the staffing credentials of section 245G.11, subdivisions 1 and 7, and provided 
143.14 	according to the requirements of section 245G.07, subdivision 1, paragraph (a), clause (5)
143.15 	1b. A county is an eligible vendor of peer recovery services when the services are provided 
143.16 	by an individual who meets the requirements of section 245G.11, subdivision 8, and 
143.17 	according to section 254B.052.
143.18 	(d) A recovery community organization that meets the requirements of clauses (1) to 
143.19 	(14) and meets certification or accreditation requirements of the Alliance for Recovery 
143.20 	Centered Organizations, the Council on Accreditation of Peer Recovery Support Services, 
143.21 	or a Minnesota statewide recovery organization identified by the commissioner is an eligible 
143.22 	vendor of peer recovery support services. A Minnesota statewide recovery organization 
143.23 	identified by the commissioner must update recovery community organization applicants 
143.24 	for certification or accreditation on the status of the application within 45 days of receipt. 
143.25 	If the approved statewide recovery organization denies an application, it must provide a 
143.26 	written explanation for the denial to the recovery community organization. Eligible vendors 
143.27 	under this paragraph must:
143.28 	(1) be nonprofit organizations under section 501(c)(3) of the Internal Revenue Code, be 
143.29 	free from conflicting self-interests, and be autonomous in decision-making, program 
143.30 	development, peer recovery support services provided, and advocacy efforts for the purpose 
143.31 	of supporting the recovery community organization's mission;
143.32 	(2) be led and governed by individuals in the recovery community, with more than 50 
143.33 	percent of the board of directors or advisory board members self-identifying as people in 
143.34 	personal recovery from substance use disorders;
144.1 	(3) have a mission statement and conduct corresponding activities indicating that the 
144.2 	organization's primary purpose is to support recovery from substance use disorder;
144.3 	(4) demonstrate ongoing community engagement with the identified primary region and 
144.4 	population served by the organization, including individuals in recovery and their families, 
144.5 	friends, and recovery allies;
144.6 	(5) be accountable to the recovery community through documented priority-setting and 
144.7 	participatory decision-making processes that promote the engagement of, and consultation 
144.8 	with, people in recovery and their families, friends, and recovery allies;
144.9 	(6) provide nonclinical peer recovery support services, including but not limited to 
144.10 	recovery support groups, recovery coaching, telephone recovery support, skill-building, 
144.11 	and harm-reduction activities, and provide recovery public education and advocacy;
144.12 	(7) have written policies that allow for and support opportunities for all paths toward 
144.13 	recovery and refrain from excluding anyone based on their chosen recovery path, which 
144.14 	may include but is not limited to harm reduction paths, faith-based paths, and nonfaith-based 
144.15 	paths;
144.16 	(8) maintain organizational practices to meet the needs of Black, Indigenous, and people 
144.17 	of color communities, LGBTQ+ communities, and other underrepresented or marginalized 
144.18 	communities. Organizational practices may include board and staff training, service offerings, 
144.19 	advocacy efforts, and culturally informed outreach and services;
144.20 	(9) use recovery-friendly language in all media and written materials that is supportive 
144.21 	of and promotes recovery across diverse geographical and cultural contexts and reduces 
144.22 	stigma;
144.23 	(10) establish and maintain a publicly available recovery community organization code 
144.24 	of ethics and grievance policy and procedures;
144.25 	(11) not classify or treat any recovery peer hired on or after July 1, 2024, as an 
144.26 	independent contractor;
144.27 	(12) not classify or treat any recovery peer as an independent contractor on or after 
144.28 	January 1, 2025;
144.29 	(13) provide an orientation for recovery peers that includes an overview of the consumer 
144.30 	advocacy services provided by the Ombudsman for Mental Health and Developmental 
144.31 	Disabilities and other relevant advocacy services; and
145.1 	(14) provide notice to peer recovery support services participants that includes the 
145.2 	following statement: "If you have a complaint about the provider or the person providing 
145.3 	your peer recovery support services, you may contact the Minnesota Alliance of Recovery 
145.4 	Community Organizations. You may also contact the Office of Ombudsman for Mental 
145.5 	Health and Developmental Disabilities." The statement must also include:
145.6 	(i) the telephone number, website address, email address, and mailing address of the 
145.7 	Minnesota Alliance of Recovery Community Organizations and the Office of Ombudsman 
145.8 	for Mental Health and Developmental Disabilities;
145.9 	(ii) the recovery community organization's name, address, email, telephone number, and 
145.10 	name or title of the person at the recovery community organization to whom problems or 
145.11 	complaints may be directed; and
145.12 	(iii) a statement that the recovery community organization will not retaliate against a 
145.13 	peer recovery support services participant because of a complaint.
145.14 	(e) A recovery community organization approved by the commissioner before June 30, 
145.15 	2023, must have begun the application process as required by an approved certifying or 
145.16 	accrediting entity and have begun the process to meet the requirements under paragraph (d) 
145.17 	by September 1, 2024, in order to be considered as an eligible vendor of peer recovery 
145.18 	support services.
145.19 	(f) A recovery community organization that is aggrieved by an accreditation, certification, 
145.20 	or membership determination and believes it meets the requirements under paragraph (d) 
145.21 	may appeal the determination under section 256.045, subdivision 3, paragraph (a), clause 
145.22 	(14), for reconsideration as an eligible vendor. If the human services judge determines that 
145.23 	the recovery community organization meets the requirements under paragraph (d), the 
145.24 	recovery community organization is an eligible vendor of peer recovery support services.
145.25 	(g) All recovery community organizations must be certified or accredited by an entity 
145.26 	listed in paragraph (d) by June 30, 2025.
145.27 	(h) Detoxification programs licensed under Minnesota Rules, parts 9530.6510 to 
145.28 	9530.6590, are not eligible vendors. Programs that are not licensed as a residential or 
145.29 	nonresidential substance use disorder treatment or withdrawal management program by the 
145.30 	commissioner or by tribal government or do not meet the requirements of subdivisions 1a 
145.31 	and 1b are not eligible vendors.
145.32 	(i) Hospitals, federally qualified health centers, and rural health clinics are eligible 
145.33 	vendors of a comprehensive assessment when the comprehensive assessment is completed 
146.1 	according to section 254A.19, subdivision 3, and by an individual who meets the criteria 
146.2 	of an alcohol and drug counselor according to section 245G.11, subdivision 5. The alcohol 
146.3 	and drug counselor must be individually enrolled with the commissioner and reported on 
146.4 	the claim as the individual who provided the service.
146.5 	(j) Any complaints about a recovery community organization or peer recovery support 
146.6 	services may be made to and reviewed or investigated by the ombudsperson for behavioral 
146.7 	health and developmental disabilities under sections 245.91 and 245.94.

146.8 	EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval, 
146.9 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
146.10 	when federal approval is obtained.

146.11 	Sec. 29. Minnesota Statutes 2024, section 254B.05, subdivision 5, is amended to read:
146.12 		Subd. 5.Rate requirements. (a) Subject to the requirements of subdivision 6, the 
146.13 	commissioner shall establish rates for the following substance use disorder treatment services 
146.14 	and service enhancements funded under this chapter.:
146.15 	(b) Eligible substance use disorder treatment services include:
146.16 	(1) those licensed, as applicable, according to chapter 245G or applicable Tribal license 
146.17 	and provided according to the following ASAM levels of care:
146.18 	(i) ASAM level 0.5 early intervention services provided according to section 254B.19, 
146.19 	subdivision 1, clause (1);
146.20 	(ii) ASAM level 1.0 outpatient services provided according to section 254B.19, 
146.21 	subdivision 1, clause (2);
146.22 	(iii) ASAM level 2.1 intensive outpatient services provided according to section 254B.19, 
146.23 	subdivision 1, clause (3);
146.24 	(iv) ASAM level 2.5 partial hospitalization services provided according to section 
146.25 	254B.19, subdivision 1, clause (4);
146.26 	(v) ASAM level 3.1 clinically managed low-intensity residential services provided 
146.27 	according to section 254B.19, subdivision 1, clause (5). The commissioner shall use the 
146.28 	base payment rate of $79.84 per day for services provided under this item;
146.29 	(vi) ASAM level 3.1 clinically managed low-intensity residential services provided 
146.30 	according to section 254B.19, subdivision 1, clause (5), at 15 or more hours of skilled 
146.31 	treatment services each week. The commissioner shall use the base payment rate of $166.13 
146.32 	per day for services provided under this item;
147.1 	(vii) ASAM level 3.3 clinically managed population-specific high-intensity residential 
147.2 	services provided according to section 254B.19, subdivision 1, clause (6). The commissioner 
147.3 	shall use the specified base payment rate of $224.06 per day for services provided under 
147.4 	this item; and
147.5 	(viii) ASAM level 3.5 clinically managed high-intensity residential services provided 
147.6 	according to section 254B.19, subdivision 1, clause (7). The commissioner shall use the 
147.7 	specified base payment rate of $224.06 per day for services provided under this item;
147.8 	(2) comprehensive assessments provided according to section 254A.19, subdivision 3;
147.9 	(3) treatment coordination services provided according to section 245G.07, subdivision 
147.10 	1, paragraph (a), clause (5);
147.11 	(4) peer recovery support services provided according to section 245G.07, subdivision 
147.12 	2, clause (8);
147.13 	(5) withdrawal management services provided according to chapter 245F;
147.14 	(6) hospital-based treatment services that are licensed according to sections 245G.01 to 
147.15 	245G.17 or applicable Tribal license and licensed as a hospital under sections 144.50 to 
147.16 	144.56;
147.17 	(7) substance use disorder treatment services with medications for opioid use disorder 
147.18 	provided in an opioid treatment program licensed according to sections 245G.01 to 245G.17 
147.19 	and 245G.22, or under an applicable Tribal license;
147.20 	(8) medium-intensity residential treatment services that provide 15 hours of skilled 
147.21 	treatment services each week and are licensed according to sections 245G.01 to 245G.17 
147.22 	and 245G.21 or applicable Tribal license;
147.23 	(9) adolescent treatment programs that are licensed as outpatient treatment programs 
147.24 	according to sections 245G.01 to 245G.18 or as residential treatment programs according 
147.25 	to Minnesota Rules, parts 2960.0010 to 2960.0220, and 2960.0430 to 2960.0490, or 
147.26 	applicable Tribal license;
147.27 	(10) ASAM 3.5 clinically managed high-intensity residential services that are licensed 
147.28 	according to sections 245G.01 to 245G.17 and 245G.21 or applicable Tribal license, which 
147.29 	provide ASAM level of care 3.5 according to section 254B.19, subdivision 1, clause (7), 
147.30 	and are provided by a state-operated vendor or to clients who have been civilly committed 
147.31 	to the commissioner, present the most complex and difficult care needs, and are a potential 
147.32 	threat to the community; and
148.1 	(11) room and board facilities that meet the requirements of subdivision 1a.
148.2 	(c) (b) The commissioner shall establish higher rates for programs that meet the 
148.3 	requirements of paragraph (b) (a) and one of the following additional requirements: the 
148.4 	requirements of one clause in this paragraph.
148.5 	(1) Programs that serve parents with their children are eligible for an enhanced payment 
148.6 	rate if the program:
148.7 	(i) provides on-site child care during the hours of treatment activity that:
148.8 	(A) is licensed under chapter 245A as a child care center under Minnesota Rules, chapter 
148.9 	9503; or
148.10 	(B) is licensed under chapter 245A and sections 245G.01 to 245G.19; or
148.11 	(ii) arranges for off-site child care during hours of treatment activity at a facility that is 
148.12 	licensed under chapter 245A as:
148.13 	(A) a child care center under Minnesota Rules, chapter 9503; or
148.14 	(B) a family child care home under Minnesota Rules, chapter 9502;.
148.15 	In order to be eligible for a higher rate under this clause, a program that provides 
148.16 	arrangements for off-site child care must maintain current documentation at the substance 
148.17 	use disorder facility of the child care provider's current licensure to provide child care 
148.18 	services.
148.19 	(2) Culturally specific or culturally responsive programs as defined in section 254B.01, 
148.20 	subdivision 4a; are eligible for an enhanced payment rate.
148.21 	(3) Disability responsive programs as defined in section 254B.01, subdivision 4b; are 
148.22 	eligible for an enhanced payment rate.
148.23 	(4) Programs that offer medical services delivered by appropriately credentialed health 
148.24 	care staff in an amount equal to one hour per client per week are eligible for an enhanced 
148.25 	payment rate if the medical needs of the client and the nature and provision of any medical 
148.26 	services provided are documented in the client file; or.
148.27 	(5) Programs that offer services to individuals with co-occurring mental health and 
148.28 	substance use disorder problems are eligible for an enhanced payment rate if:
148.29 	(i) the program meets the co-occurring requirements in section 245G.20;
148.30 	(ii) the program employs a mental health professional as defined in section 245I.04, 
148.31 	subdivision 2;
149.1 	(iii) clients scoring positive on a standardized mental health screen receive a mental 
149.2 	health diagnostic assessment within ten days of admission;
149.3 	(iv) the program has standards for multidisciplinary case review that include a monthly 
149.4 	review for each client that, at a minimum, includes a licensed mental health professional 
149.5 	and licensed alcohol and drug counselor, and their involvement in the review is documented;
149.6 	(v) family education is offered that addresses mental health and substance use disorder 
149.7 	and the interaction between the two; and
149.8 	(vi) co-occurring counseling staff shall receive eight hours of co-occurring disorder 
149.9 	training annually.
149.10 	(d) In order to be eligible for a higher rate under paragraph (c), clause (1), a program 
149.11 	that provides arrangements for off-site child care must maintain current documentation at 
149.12 	the substance use disorder facility of the child care provider's current licensure to provide 
149.13 	child care services.
149.14 	(e) Adolescent residential programs that meet the requirements of Minnesota Rules, parts 
149.15 	2960.0430 to 2960.0490 and 2960.0580 to 2960.0690, are exempt from the requirements 
149.16 	in paragraph (c), clause (5), items (i) to (iv).
149.17 	(f) (c) Substance use disorder services that are otherwise covered as direct face-to-face 
149.18 	services may be provided via telehealth as defined in section 256B.0625, subdivision 3b. 
149.19 	The use of telehealth to deliver services must be medically appropriate to the condition and 
149.20 	needs of the person being served. Reimbursement shall be at the same rates and under the 
149.21 	same conditions that would otherwise apply to direct face-to-face services.
149.22 	(g) (d) For the purpose of reimbursement under this section, substance use disorder 
149.23 	treatment services provided in a group setting without a group participant maximum or 
149.24 	maximum client to staff ratio under chapter 245G shall not exceed a client to staff ratio of 
149.25 	48 to one. At least one of the attending staff must meet the qualifications as established 
149.26 	under this chapter for the type of treatment service provided. A recovery peer may not be 
149.27 	included as part of the staff ratio.
149.28 	(h) (e) Payment for outpatient substance use disorder services that are licensed according 
149.29 	to sections 245G.01 to 245G.17 is limited to six hours per day or 30 hours per week unless 
149.30 	prior authorization of a greater number of hours is obtained from the commissioner.
149.31 	(i) (f) Payment for substance use disorder services under this section must start from the 
149.32 	day of service initiation, when the comprehensive assessment is completed within the 
149.33 	required timelines.
150.1 	(j) (g) A license holder that is unable to provide all residential treatment services because 
150.2 	a client missed services remains eligible to bill for the client's intensity level of services 
150.3 	under this paragraph if the license holder can document the reason the client missed services 
150.4 	and the interventions done to address the client's absence.
150.5 	(k) (h) Hours in a treatment week may be reduced in observance of federally recognized 
150.6 	holidays.
150.7 	(l) (i) Eligible vendors of peer recovery support services must:
150.8 	(1) submit to a review by the commissioner of up to ten percent of all medical assistance 
150.9 	and behavioral health fund claims to determine the medical necessity of peer recovery 
150.10 	support services for entities billing for peer recovery support services individually and not 
150.11 	receiving a daily rate; and
150.12 	(2) limit an individual client to 14 hours per week for peer recovery support services 
150.13 	from an individual provider of peer recovery support services.
150.14 	(m) (j) Peer recovery support services not provided in accordance with section 254B.052 
150.15 	are subject to monetary recovery under section 256B.064 as money improperly paid.

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

150.17 	Sec. 30. Minnesota Statutes 2024, section 254B.05, is amended by adding a subdivision 
150.18 	to read:
150.19 		Subd. 6.Rate adjustments. (a) Effective for services rendered on or after January 1, 
150.20 	2026, the commissioner must implement the following base payment rates for substance 
150.21 	use disorder treatment services under subdivision 5, paragraph (a):
150.22 	(1) for low-intensity residential, 100 percent of the modeled rate included in the final 
150.23 	report required by Laws 2021, First Special Session chapter 7, article 17, section 18;
150.24 	(2) for high-intensity residential services, the rates in effect on December 31, 2025; and
150.25 	(3) for all other services not included in clause (1) or (2), 55 percent of the modeled rate 
150.26 	included in the final report required by Laws 2021, First Special Session chapter 7, article 
150.27 	17, section 18.
150.28 	(b) Effective January 1, 2028, and annually thereafter, the commissioner of human 
150.29 	services must adjust the payment rates under paragraph (a) according to the change from 
150.30 	the midpoint of the previous rate year to the midpoint of the rate year for which the rate is 
150.31 	being determined using the Centers for Medicare and Medicaid Services Medicare Economic 
150.32 	Index as forecasted in the fourth quarter of the calendar year before the rate year.

151.1 	Sec. 31. Minnesota Statutes 2024, section 254B.06, is amended by adding a subdivision 
151.2 	to read:
151.3 		Subd. 5.Prohibition of duplicative claim submission. (a) For time-based claims, 
151.4 	submissions must follow the guidelines in the Centers for Medicare and Medicaid Services' 
151.5 	Healthcare Common Procedure Coding System and the American Medical Association's 
151.6 	Current Procedural Terminology to determine the appropriate units of time to report.
151.7 	(b) More than half the duration of a time-based code must be spent performing the service 
151.8 	to be eligible under this section. Any provision of service during the remaining balance of 
151.9 	the unit of time is not eligible for any other claims submission and would be considered a 
151.10 	duplicative claim submission.
151.11 	(c) A provider may only round up to the next whole number of service units on a 
151.12 	submitted claim when more than one and one-half times the defined value of the code has 
151.13 	occurred and no additional time increment code exists.

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

151.15 	Sec. 32. Minnesota Statutes 2024, section 254B.09, subdivision 2, is amended to read:
151.16 		Subd. 2.American Indian agreements. The commissioner may enter into agreements 
151.17 	with federally recognized Tribal units to pay for substance use disorder treatment services 
151.18 	provided under Laws 1986, chapter 394, sections 8 to 20. The agreements must clarify how 
151.19 	the governing body of the Tribal unit fulfills local agency the Tribal unit's responsibilities 
151.20 	regarding the form and manner of invoicing.

151.21 	EFFECTIVE DATE. This section is effective July 1, 2026.

151.22 	Sec. 33. Minnesota Statutes 2024, section 254B.19, subdivision 1, is amended to read:
151.23 		Subdivision 1.Level of care requirements. (a) For each client assigned an ASAM level 
151.24 	of care, eligible vendors must implement the standards set by the ASAM for the respective 
151.25 	level of care. Additionally, vendors must meet the following requirements:
151.26 	(1) For ASAM level 0.5 early intervention targeting individuals who are at risk of 
151.27 	developing a substance-related problem but may not have a diagnosed substance use disorder, 
151.28 	early intervention services may include individual or group counseling, treatment 
151.29 	coordination, peer recovery support, screening brief intervention, and referral to treatment 
151.30 	provided according to section 254A.03, subdivision 3, paragraph (c).
152.1 	(2) For ASAM level 1.0 outpatient clients, adults must receive up to eight hours per 
152.2 	week of skilled psychosocial treatment services and adolescents must receive up to five 
152.3 	hours per week. Services must be licensed according to section 245G.20 and meet 
152.4 	requirements under section 256B.0759. Peer recovery Ancillary services and treatment 
152.5 	coordination may be provided beyond the hourly skilled psychosocial treatment service 
152.6 	hours allowable per week.
152.7 	(3) For ASAM level 2.1 intensive outpatient clients, adults must receive nine to 19 hours 
152.8 	per week of skilled psychosocial treatment services and adolescents must receive six or 
152.9 	more hours per week. Vendors must be licensed according to section 245G.20 and must 
152.10 	meet requirements under section 256B.0759. Peer recovery Ancillary services and treatment 
152.11 	coordination may be provided beyond the hourly skilled psychosocial treatment service 
152.12 	hours allowable per week. If clinically indicated on the client's treatment plan, this service 
152.13 	may be provided in conjunction with room and board according to section 254B.05, 
152.14 	subdivision 1a.
152.15 	(4) For ASAM level 2.5 partial hospitalization clients, adults must receive 20 hours or 
152.16 	more of skilled psychosocial treatment services. Services must be licensed according to 
152.17 	section 245G.20 and must meet requirements under section 256B.0759. Level 2.5 is for 
152.18 	clients who need daily monitoring in a structured setting, as directed by the individual 
152.19 	treatment plan and in accordance with the limitations in section 254B.05, subdivision 5, 
152.20 	paragraph (h). If clinically indicated on the client's treatment plan, this service may be 
152.21 	provided in conjunction with room and board according to section 254B.05, subdivision 
152.22 	1a.
152.23 	(5) For ASAM level 3.1 clinically managed low-intensity residential clients, programs 
152.24 	must provide at least 5 hours of skilled psychosocial treatment services per week according 
152.25 	to each client's specific treatment schedule, as directed by the individual treatment plan. 
152.26 	Programs must be licensed according to section 245G.20 and must meet requirements under 
152.27 	section 256B.0759.
152.28 	(6) For ASAM level 3.3 clinically managed population-specific high-intensity residential 
152.29 	clients, programs must be licensed according to section 245G.20 and must meet requirements 
152.30 	under section 256B.0759. Programs must have 24-hour staffing coverage. Programs must 
152.31 	be enrolled as a disability responsive program as described in section 254B.01, subdivision 
152.32 	4b, and must specialize in serving persons with a traumatic brain injury or a cognitive 
152.33 	impairment so significant, and the resulting level of impairment so great, that outpatient or 
152.34 	other levels of residential care would not be feasible or effective. Programs must provide, 
153.1 	at a minimum, daily skilled psychosocial treatment services seven days a week according 
153.2 	to each client's specific treatment schedule, as directed by the individual treatment plan.
153.3 	(7) For ASAM level 3.5 clinically managed high-intensity residential clients, services 
153.4 	must be licensed according to section 245G.20 and must meet requirements under section 
153.5 	256B.0759. Programs must have 24-hour staffing coverage and provide, at a minimum, 
153.6 	daily skilled psychosocial treatment services seven days a week according to each client's 
153.7 	specific treatment schedule, as directed by the individual treatment plan.
153.8 	(8) For ASAM level withdrawal management 3.2 clinically managed clients, withdrawal 
153.9 	management must be provided according to chapter 245F.
153.10 	(9) For ASAM level withdrawal management 3.7 medically monitored clients, withdrawal 
153.11 	management must be provided according to chapter 245F.
153.12 	(b) Notwithstanding the minimum daily skilled psychosocial treatment service 
153.13 	requirements under paragraph (a), clauses (6) and (7), ASAM level 3.3 and 3.5 vendors 
153.14 	must provide each client at least 30 hours of treatment services per week for the period 
153.15 	between January 1, 2024, through June 30, 2024.

153.16 	EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval, 
153.17 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
153.18 	when federal approval is obtained.

153.19 	Sec. 34. Minnesota Statutes 2024, section 256.042, subdivision 4, is amended to read:
153.20 		Subd. 4.Grants. (a) The commissioner of human services shall submit a report of the 
153.21 	grants proposed by the advisory council to be awarded for the upcoming calendar year to 
153.22 	the chairs and ranking minority members of the legislative committees with jurisdiction 
153.23 	over health and human services policy and finance, by December 1 of each year, beginning 
153.24 	December 1, 2022. This paragraph expires upon the expiration of the advisory council.
153.25 	(b) The grants shall be awarded to proposals selected by the advisory council that address 
153.26 	the priorities in subdivision 1, paragraph (a), clauses (1) to (4), unless otherwise appropriated 
153.27 	by the legislature. The advisory council shall determine grant awards and funding amounts 
153.28 	based on the funds appropriated to the commissioner under section 256.043, subdivision 3, 
153.29 	paragraph (n) (m), and subdivision 3a, paragraph (d). The commissioner shall award the 
153.30 	grants from the opiate epidemic response fund and administer the grants in compliance with 
153.31 	section 16B.97. No more than ten percent of the grant amount may be used by a grantee for 
153.32 	administration.

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

154.3 	Sec. 35. Minnesota Statutes 2024, section 256.043, subdivision 3, is amended to read:
154.4 		Subd. 3.Appropriations from registration and license fee account. (a) The 
154.5 	appropriations in paragraphs (b) to (n) (m) shall be made from the registration and license 
154.6 	fee account on a fiscal year basis in the order specified.
154.7 	(b) The appropriations specified in Laws 2019, chapter 63, article 3, section 1, paragraphs 
154.8 	(b), (f), (g), and (h), as amended by Laws 2020, chapter 115, article 3, section 35, shall be 
154.9 	made accordingly.
154.10 	(c) $100,000 is appropriated to the commissioner of human services for grants for opiate 
154.11 	antagonist distribution. Grantees may utilize funds for opioid overdose prevention, 
154.12 	community asset mapping, education, and opiate antagonist distribution.
154.13 	(d) $2,000,000 is appropriated to the commissioner of human services for grants to Tribal 
154.14 	nations and five urban Indian communities for traditional healing practices for American 
154.15 	Indians and to increase the capacity of culturally specific providers in the behavioral health 
154.16 	workforce.
154.17 	(e) $400,000 is appropriated to the commissioner of human services for competitive 
154.18 	grants for opioid-focused Project ECHO programs.
154.19 	(f) $277,000 in fiscal year 2024 and $321,000 each year thereafter is appropriated to the 
154.20 	commissioner of human services to administer the funding distribution and reporting 
154.21 	requirements in paragraph (o) (n).
154.22 	(g) $3,000,000 in fiscal year 2025 and $3,000,000 each year thereafter is appropriated 
154.23 	to the commissioner of human services for safe recovery sites start-up and capacity building 
154.24 	grants under section 254B.18.
154.25 	(h) (g) $395,000 in fiscal year 2024 and $415,000 each year thereafter is appropriated 
154.26 	to the commissioner of human services for the opioid overdose surge alert system under 
154.27 	section 245.891.
154.28 	(i) (h) $300,000 is appropriated to the commissioner of management and budget for 
154.29 	evaluation activities under section 256.042, subdivision 1, paragraph (c).
154.30 	(j) (i) $261,000 is appropriated to the commissioner of human services for the provision 
154.31 	of administrative services to the Opiate Epidemic Response Advisory Council and for the 
154.32 	administration of the grants awarded under paragraph (n) (m).
155.1 	(k) (j) $126,000 is appropriated to the Board of Pharmacy for the collection of the 
155.2 	registration fees under section 151.066.
155.3 	(l) (k) $672,000 is appropriated to the commissioner of public safety for the Bureau of 
155.4 	Criminal Apprehension. Of this amount, $384,000 is for drug scientists and lab supplies 
155.5 	and $288,000 is for special agent positions focused on drug interdiction and drug trafficking.
155.6 	(m) (l) After the appropriations in paragraphs (b) to (l) (k) are made, 50 percent of the 
155.7 	remaining amount is appropriated to the commissioner of children, youth, and families for 
155.8 	distribution to county social service agencies and Tribal social service agency initiative 
155.9 	projects authorized under section 256.01, subdivision 14b, to provide prevention and child 
155.10 	protection services to children and families who are affected by addiction. The commissioner 
155.11 	shall distribute this money proportionally to county social service agencies and Tribal social 
155.12 	service agency initiative projects through a formula based on intake data from the previous 
155.13 	three calendar years related to substance use and out-of-home placement episodes where 
155.14 	parental drug abuse is a reason for the out-of-home placement. County social service agencies 
155.15 	and Tribal social service agency initiative projects receiving funds from the opiate epidemic 
155.16 	response fund must annually report to the commissioner on how the funds were used to 
155.17 	provide prevention and child protection services, including measurable outcomes, as 
155.18 	determined by the commissioner. County social service agencies and Tribal social service 
155.19 	agency initiative projects must not use funds received under this paragraph to supplant 
155.20 	current state or local funding received for child protection services for children and families 
155.21 	who are affected by addiction.
155.22 	(n) (m) After the appropriations in paragraphs (b) to (m) (l) are made, the remaining 
155.23 	amount in the account is appropriated to the commissioner of human services to award 
155.24 	grants as specified by the Opiate Epidemic Response Advisory Council in accordance with 
155.25 	section 256.042, unless otherwise appropriated by the legislature.
155.26 	(o) (n) Beginning in fiscal year 2022 and each year thereafter, funds for county social 
155.27 	service agencies and Tribal social service agency initiative projects under paragraph (m)
155.28 	(l) and grant funds specified by the Opiate Epidemic Response Advisory Council under 
155.29 	paragraph (n) (m) may be distributed on a calendar year basis.
155.30 	(p) (o) Notwithstanding section 16A.28, subdivision 3, funds appropriated in paragraphs 
155.31 	(c), (d), (e), (g) (h), (m) (l), and (n) (m) are available for three years after the funds are 
155.32 	appropriated.

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

156.1 	Sec. 36. Minnesota Statutes 2024, section 256.043, subdivision 3a, is amended to read:
156.2 		Subd. 3a.Appropriations from settlement account. (a) The appropriations in paragraphs 
156.3 	(b) to (e) shall be made from the settlement account on a fiscal year basis in the order 
156.4 	specified.
156.5 	(b) If the balance in the registration and license fee account is not sufficient to fully fund 
156.6 	the appropriations specified in subdivision 3, paragraphs (b) to (l) (k), an amount necessary 
156.7 	to meet any insufficiency shall be transferred from the settlement account to the registration 
156.8 	and license fee account to fully fund the required appropriations.
156.9 	(c) $209,000 in fiscal year 2023 and $239,000 in fiscal year 2024 and subsequent fiscal 
156.10 	years are appropriated to the commissioner of human services for the administration of 
156.11 	grants awarded under paragraph (e). $276,000 in fiscal year 2023 and $151,000 in fiscal 
156.12 	year 2024 and subsequent fiscal years are appropriated to the commissioner of human 
156.13 	services to collect, collate, and report data submitted and to monitor compliance with 
156.14 	reporting and settlement expenditure requirements by grantees awarded grants under this 
156.15 	section and municipalities receiving direct payments from a statewide opioid settlement 
156.16 	agreement as defined in section 256.042, subdivision 6.
156.17 	(d) After any appropriations necessary under paragraphs (b) and (c) are made, an amount 
156.18 	equal to the calendar year allocation to Tribal social service agency initiative projects under 
156.19 	subdivision 3, paragraph (m) (l), is appropriated from the settlement account to the 
156.20 	commissioner of children, youth, and families for distribution to Tribal social service agency 
156.21 	initiative projects to provide child protection services to children and families who are 
156.22 	affected by addiction. The requirements related to proportional distribution, annual reporting, 
156.23 	and maintenance of effort specified in subdivision 3, paragraph (m) (l), also apply to the 
156.24 	appropriations made under this paragraph.
156.25 	(e) After making the appropriations in paragraphs (b), (c), and (d), the remaining amount 
156.26 	in the account is appropriated to the commissioner of human services to award grants as 
156.27 	specified by the Opiate Epidemic Response Advisory Council in accordance with section 
156.28 	256.042.
156.29 	(f) Funds for Tribal social service agency initiative projects under paragraph (d) and 
156.30 	grant funds specified by the Opiate Epidemic Response Advisory Council under paragraph 
156.31 	(e) may be distributed on a calendar year basis.
156.32 	(g) Notwithstanding section 16A.28, subdivision 3, funds appropriated in paragraphs 
156.33 	(d) and (e) are available for three years after the funds are appropriated.

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

157.3 	Sec. 37. Minnesota Statutes 2024, section 256B.0625, subdivision 5m, is amended to read:
157.4 		Subd. 5m.Certified community behavioral health clinic services. (a) Medical 
157.5 	assistance covers services provided by a not-for-profit certified community behavioral health 
157.6 	clinic (CCBHC) that meets the requirements of section 245.735, subdivision 3.
157.7 	(b) The commissioner shall reimburse CCBHCs on a per-day basis for each day that an 
157.8 	eligible service is delivered using the CCBHC daily bundled rate system for medical 
157.9 	assistance payments as described in paragraph (c). The commissioner shall include a quality 
157.10 	incentive payment in the CCBHC daily bundled rate system as described in paragraph (e). 
157.11 	There is no county share for medical assistance services when reimbursed through the 
157.12 	CCBHC daily bundled rate system.
157.13 	(c) The commissioner shall ensure that the CCBHC daily bundled rate system for CCBHC 
157.14 	payments under medical assistance meets the following requirements:
157.15 	(1) the CCBHC daily bundled rate shall be a provider-specific rate calculated for each 
157.16 	CCBHC, based on the daily cost of providing CCBHC services and the total annual allowable 
157.17 	CCBHC costs divided by the total annual number of CCBHC visits. For calculating the 
157.18 	payment rate, total annual visits include visits covered by medical assistance and visits not 
157.19 	covered by medical assistance. Allowable costs include but are not limited to the salaries 
157.20 	and benefits of medical assistance providers; the cost of CCBHC services provided under 
157.21 	section 245.735, subdivision 3, paragraph (a), clauses (6) and (7); and other costs such as 
157.22 	insurance or supplies needed to provide CCBHC services;
157.23 	(2) payment shall be limited to one payment per day per medical assistance enrollee 
157.24 	when an eligible CCBHC service is provided. A CCBHC visit is eligible for reimbursement 
157.25 	if at least one of the CCBHC services listed under section 245.735, subdivision 3, paragraph 
157.26 	(a), clause (6), is furnished to a medical assistance enrollee by a health care practitioner or 
157.27 	licensed agency employed by or under contract with a CCBHC;
157.28 	(3) initial CCBHC daily bundled rates for newly certified CCBHCs under section 245.735, 
157.29 	subdivision 3, shall be established by the commissioner using a provider-specific rate based 
157.30 	on the newly certified CCBHC's audited historical cost report data adjusted for the expected 
157.31 	cost of delivering CCBHC services. Estimates are subject to review by the commissioner 
157.32 	and must include the expected cost of providing the full scope of CCBHC services and the 
157.33 	expected number of visits for the rate period;
158.1 	(4) the commissioner shall rebase CCBHC rates once every two years following the last 
158.2 	rebasing and no less than 12 months following an initial rate or a rate change due to a change 
158.3 	in the scope of services. For CCBHCs certified after September 31, 2020, and before January 
158.4 	1, 2021, the commissioner shall rebase rates according to this clause for services provided 
158.5 	on or after January 1, 2024;
158.6 	(5) the commissioner shall provide for a 60-day appeals process after notice of the results 
158.7 	of the rebasing;
158.8 	(6) an entity that receives a CCBHC daily bundled rate that overlaps with another federal 
158.9 	Medicaid rate is not eligible for the CCBHC rate methodology;
158.10 	(7) payments for CCBHC services to individuals enrolled in managed care shall be 
158.11 	coordinated with the state's phase-out of CCBHC wrap payments. The commissioner shall 
158.12 	complete the phase-out of CCBHC wrap payments within 60 days of the implementation 
158.13 	of the CCBHC daily bundled rate system in the Medicaid Management Information System 
158.14 	(MMIS), for CCBHCs reimbursed under this chapter, with a final settlement of payments 
158.15 	due made payable to CCBHCs no later than 18 months thereafter;
158.16 	(8) the CCBHC daily bundled rate for each CCBHC shall be updated by trending each 
158.17 	provider-specific rate by the Medicare Economic Index for primary care services. This 
158.18 	update shall occur each year in between rebasing periods determined by the commissioner 
158.19 	in accordance with clause (4). CCBHCs must provide data on costs and visits to the state 
158.20 	annually using the CCBHC cost report established by the commissioner; and
158.21 	(9) a CCBHC may request a rate adjustment for changes in the CCBHC's scope of 
158.22 	services when such changes are expected to result in an adjustment to the CCBHC payment 
158.23 	rate by 2.5 percent or more. The CCBHC must provide the commissioner with information 
158.24 	regarding the changes in the scope of services, including the estimated cost of providing 
158.25 	the new or modified services and any projected increase or decrease in the number of visits 
158.26 	resulting from the change. Estimated costs are subject to review by the commissioner. Rate 
158.27 	adjustments for changes in scope shall occur no more than once per year in between rebasing 
158.28 	periods per CCBHC and are effective on the date of the annual CCBHC rate update.
158.29 	(d) Managed care plans and county-based purchasing plans shall reimburse CCBHC 
158.30 	providers at the CCBHC daily bundled rate. The commissioner shall monitor the effect of 
158.31 	this requirement on the rate of access to the services delivered by CCBHC providers. If, for 
158.32 	any contract year, federal approval is not received for this paragraph, the commissioner 
158.33 	must adjust the capitation rates paid to managed care plans and county-based purchasing 
158.34 	plans for that contract year to reflect the removal of this provision. Contracts between 
159.1 	managed care plans and county-based purchasing plans and providers to whom this paragraph 
159.2 	applies must allow recovery of payments from those providers if capitation rates are adjusted 
159.3 	in accordance with this paragraph. Payment recoveries must not exceed the amount equal 
159.4 	to any increase in rates that results from this provision. This paragraph expires if federal 
159.5 	approval is not received for this paragraph at any time.
159.6 	(e) The commissioner shall implement a quality incentive payment program for CCBHCs 
159.7 	that meets the following requirements:
159.8 	(1) a CCBHC shall receive a quality incentive payment upon meeting specific numeric 
159.9 	thresholds for performance metrics established by the commissioner, in addition to payments 
159.10 	for which the CCBHC is eligible under the CCBHC daily bundled rate system described in 
159.11 	paragraph (c);
159.12 	(2) a CCBHC must be certified and enrolled as a CCBHC for the entire measurement 
159.13 	year to be eligible for incentive payments;
159.14 	(3) each CCBHC shall receive written notice of the criteria that must be met in order to 
159.15 	receive quality incentive payments at least 90 days prior to the measurement year; and
159.16 	(4) a CCBHC must provide the commissioner with data needed to determine incentive 
159.17 	payment eligibility within six months following the measurement year. The commissioner 
159.18 	shall notify CCBHC providers of their performance on the required measures and the 
159.19 	incentive payment amount within 12 months following the measurement year.
159.20 	(f) All claims to managed care plans for CCBHC services as provided under this section 
159.21 	shall be submitted directly to, and paid by, the commissioner on the dates specified no later 
159.22 	than January 1 of the following calendar year, if:
159.23 	(1) one or more managed care plans does not comply with the federal requirement for 
159.24 	payment of clean claims to CCBHCs, as defined in Code of Federal Regulations, title 42, 
159.25 	section 447.45(b), and the managed care plan does not resolve the payment issue within 30 
159.26 	days of noncompliance; and
159.27 	(2) the total amount of clean claims not paid in accordance with federal requirements 
159.28 	by one or more managed care plans is 50 percent of, or greater than, the total CCBHC claims 
159.29 	eligible for payment by managed care plans.
159.30 	If the conditions in this paragraph are met between January 1 and June 30 of a calendar 
159.31 	year, claims shall be submitted to and paid by the commissioner beginning on January 1 of 
159.32 	the following year. If the conditions in this paragraph are met between July 1 and December 
160.1 	31 of a calendar year, claims shall be submitted to and paid by the commissioner beginning 
160.2 	on July 1 of the following year.
160.3 	(g) Peer services provided by a CCBHC certified under section 245.735 are a covered 
160.4 	service under medical assistance when a licensed mental health professional or alcohol and 
160.5 	drug counselor determines that peer services are medically necessary. Eligibility under this 
160.6 	subdivision for peer services provided by a CCBHC supersede eligibility standards under 
160.7 	sections 256B.0615, 256B.0616, and 245G.07, subdivision 2 2a, paragraph (b), clause (8)
160.8 	(2).

160.9 	EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval, 
160.10 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
160.11 	when federal approval is obtained.

160.12 	Sec. 38. Minnesota Statutes 2024, section 256B.0757, subdivision 4c, is amended to read:
160.13 		Subd. 4c.Behavioral health home services staff qualifications. (a) A behavioral health 
160.14 	home services provider must maintain staff with required professional qualifications 
160.15 	appropriate to the setting.
160.16 	(b) If behavioral health home services are offered in a mental health setting, the 
160.17 	integration specialist must be a licensed nurse, as defined in section 148.171, subdivision 
160.18 	9.
160.19 	(c) If behavioral health home services are offered in a primary care setting, the integration 
160.20 	specialist must be a mental health professional who is qualified according to section 245I.04, 
160.21 	subdivision 2.
160.22 	(d) If behavioral health home services are offered in either a primary care setting or 
160.23 	mental health setting, the systems navigator must be a mental health practitioner who is 
160.24 	qualified according to section 245I.04, subdivision 4, or a community health worker as 
160.25 	defined in section 256B.0625, subdivision 49.
160.26 	(e) If behavioral health home services are offered in either a primary care setting or 
160.27 	mental health setting, the qualified health home specialist must be one of the following:
160.28 	(1) a mental health certified peer specialist who is qualified according to section 245I.04, 
160.29 	subdivision 10;
160.30 	(2) a mental health certified family peer specialist who is qualified according to section 
160.31 	245I.04, subdivision 12;
161.1 	(3) a case management associate as defined in section 245.462, subdivision 4, paragraph 
161.2 	(g), or 245.4871, subdivision 4, paragraph (j);
161.3 	(4) a mental health rehabilitation worker who is qualified according to section 245I.04, 
161.4 	subdivision 14;
161.5 	(5) a community paramedic as defined in section 144E.28, subdivision 9;
161.6 	(6) a peer recovery specialist as defined in section 245G.07, subdivision 1, clause (5)
161.7 	245G.11, subdivision 8; or
161.8 	(7) a community health worker as defined in section 256B.0625, subdivision 49.

161.9 	EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval, 
161.10 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
161.11 	when federal approval is obtained.

161.12 	Sec. 39. Minnesota Statutes 2024, section 256B.0761, subdivision 4, is amended to read:
161.13 		Subd. 4.Services and duration. (a) Services must be provided 90 days prior to an 
161.14 	individual's release date or, if an individual's confinement is less than 90 days, during the 
161.15 	time period between a medical assistance eligibility determination and the release to the 
161.16 	community.
161.17 	(b) Facilities must offer the following services using either community-based or 
161.18 	corrections-based providers:
161.19 	(1) case management activities to address physical and behavioral health needs, including 
161.20 	a comprehensive assessment of individual needs, development of a person-centered care 
161.21 	plan, referrals and other activities to address assessed needs, and monitoring and follow-up 
161.22 	activities;
161.23 	(2) drug coverage in accordance with section 256B.0625, subdivision 13, including up 
161.24 	to a 30-day supply of drugs upon release;
161.25 	(3) substance use disorder comprehensive assessments according to section 254B.05, 
161.26 	subdivision 5, paragraph (b), clause (2);
161.27 	(4) treatment coordination services according to section 254B.05, subdivision 5, paragraph 
161.28 	(b), clause (3);
161.29 	(5) peer recovery support services according to sections 245I.04, subdivisions 18 and 
161.30 	19, and 254B.05, subdivision 5, paragraph (b), clause (4);
162.1 	(6) substance use disorder individual and group counseling provided according to sections 
162.2 	245G.07, subdivision 1, paragraph (a), clause (1), and 254B.05;
162.3 	(7) mental health diagnostic assessments as required under section 245I.10;
162.4 	(8) group and individual psychotherapy as required under section 256B.0671;
162.5 	(9) peer specialist services as required under sections 245I.04 and 256B.0615;
162.6 	(10) family planning and obstetrics and gynecology services; and
162.7 	(11) physical health well-being and screenings and care for adults and youth; and
162.8 	(12) medications and nonmedication treatment services for opioid use disorder under 
162.9 	section 245G.22.
162.10 	(c) Services outlined in this subdivision must only be authorized when an individual 
162.11 	demonstrates medical necessity or other eligibility as required under this chapter or applicable 
162.12 	state and federal laws.

162.13 	Sec. 40. Minnesota Statutes 2024, section 256B.761, is amended to read:
162.14 	256B.761 REIMBURSEMENT FOR MENTAL HEALTH SERVICES.
162.15 	(a) Effective for services rendered on or after July 1, 2001, payment for medication 
162.16 	management provided to psychiatric patients, outpatient mental health services, day treatment 
162.17 	services, home-based mental health services, and family community support services shall 
162.18 	be paid at the lower of (1) submitted charges, or (2) 75.6 percent of the 50th percentile of 
162.19 	1999 charges.
162.20 	(b) Effective July 1, 2001, the medical assistance rates for outpatient mental health 
162.21 	services provided by an entity that operates: (1) a Medicare-certified comprehensive 
162.22 	outpatient rehabilitation facility; and (2) a facility that was certified prior to January 1, 1993, 
162.23 	with at least 33 percent of the clients receiving rehabilitation services in the most recent 
162.24 	calendar year who are medical assistance recipients, will be increased by 38 percent, when 
162.25 	those services are provided within the comprehensive outpatient rehabilitation facility and 
162.26 	provided to residents of nursing facilities owned by the entity.
162.27 	(c) In addition to rate increases otherwise provided, the commissioner may restructure 
162.28 	coverage policy and rates to improve access to adult rehabilitative mental health services 
162.29 	under section 256B.0623 and related mental health support services under section 256B.021, 
162.30 	subdivision 4, paragraph (f), clause (2). For state fiscal years 2015 and 2016, the projected 
162.31 	state share of increased costs due to this paragraph is transferred from adult mental health 
162.32 	grants under sections 245.4661 and 256K.10. The transfer for fiscal year 2016 is a permanent 
163.1 	base adjustment for subsequent fiscal years. Payments made to managed care plans and 
163.2 	county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall reflect 
163.3 	the rate changes described in this paragraph.
163.4 	(d) Any ratables effective before July 1, 2015, do not apply to early intensive 
163.5 	developmental and behavioral intervention (EIDBI) benefits described in section 256B.0949.
163.6 	(e) Effective for services rendered on or after January 1, 2024, payment rates for 
163.7 	behavioral health services included in the rate analysis required by Laws 2021, First Special 
163.8 	Session chapter 7, article 17, section 18, except for adult day treatment services under section 
163.9 	256B.0671, subdivision 3; early intensive developmental and behavioral intervention services 
163.10 	under section 256B.0949; and substance use disorder services under chapter 254B, must be 
163.11 	increased by three percent from the rates in effect on December 31, 2023. Effective for 
163.12 	services rendered on or after January 1, 2025, payment rates for behavioral health services 
163.13 	included in the rate analysis required by Laws 2021, First Special Session chapter 7, article 
163.14 	17, section 18;, and early intensive developmental behavioral intervention services under 
163.15 	section 256B.0949; and substance use disorder services under chapter 254B, must be annually 
163.16 	adjusted according to the change from the midpoint of the previous rate year to the midpoint 
163.17 	of the rate year for which the rate is being determined using the Centers for Medicare and 
163.18 	Medicaid Services Medicare Economic Index as forecasted in the fourth quarter of the 
163.19 	calendar year before the rate year. For payments made in accordance with this paragraph, 
163.20 	if and to the extent that the commissioner identifies that the state has received federal 
163.21 	financial participation for behavioral health services in excess of the amount allowed under 
163.22 	United States Code, title 42, section 447.321, the state shall repay the excess amount to the 
163.23 	Centers for Medicare and Medicaid Services with state money and maintain the full payment 
163.24 	rate under this paragraph. This paragraph does not apply to federally qualified health centers, 
163.25 	rural health centers, Indian health services, certified community behavioral health clinics, 
163.26 	cost-based rates, and rates that are negotiated with the county. This paragraph expires upon 
163.27 	legislative implementation of the new rate methodology resulting from the rate analysis 
163.28 	required by Laws 2021, First Special Session chapter 7, article 17, section 18.
163.29 	(f) Effective January 1, 2024, the commissioner shall increase capitation payments made 
163.30 	to managed care plans and county-based purchasing plans to reflect the behavioral health 
163.31 	service rate increase provided in paragraph (e). Managed care and county-based purchasing 
163.32 	plans must use the capitation rate increase provided under this paragraph to increase payment 
163.33 	rates to behavioral health services providers. The commissioner must monitor the effect of 
163.34 	this rate increase on enrollee access to behavioral health services. If for any contract year 
163.35 	federal approval is not received for this paragraph, the commissioner must adjust the 
164.1 	capitation rates paid to managed care plans and county-based purchasing plans for that 
164.2 	contract year to reflect the removal of this provision. Contracts between managed care plans 
164.3 	and county-based purchasing plans and providers to whom this paragraph applies must 
164.4 	allow recovery of payments from those providers if capitation rates are adjusted in accordance 
164.5 	with this paragraph. Payment recoveries must not exceed the amount equal to any increase 
164.6 	in rates that results from this provision.

164.7 	Sec. 41. DIRECTION TO COMMISSIONER; SUBSTANCE USE DISORDER 
164.8 	TREATMENT STAFF REPORT AND RECOMMENDATIONS.
 164.9 	The commissioner of human services must, in consultation with the Board of Nursing, 
164.10 	Board of Behavioral Health and Therapy, and Board of Medical Practice, conduct a study 
164.11 	and develop recommendations to the legislature for amendments to Minnesota Statutes, 
164.12 	chapter 245G, that would eliminate any limitations on licensed health professionals' ability 
164.13 	to provide substance use disorder treatment services while practicing within their licensed 
164.14 	or statutory scopes of practice. The commissioner must submit a report on the study and 
164.15 	recommendations to the chairs and ranking minority members of the legislative committees 
164.16 	with jurisdiction over human services finance and policy by January 15, 2027.

164.17 	Sec. 42. DIRECTION TO THE COMMISSIONER; SUBSTANCE USE DISORDER 
164.18 	TREATMENT BILLING UNITS.
 164.19 	The commissioner of human services must establish six new billing codes for 
164.20 	nonresidential substance use disorder individual and group counseling, individual and group 
164.21 	psychoeducation, and individual and group recovery support services. The commissioner 
164.22 	must identify reimbursement rates for the newly defined codes and update the substance 
164.23 	use disorder fee schedule. The new billing codes must correspond to a 15-minute unit and 
164.24 	become effective for services provided on or after July 1, 2026, or upon federal approval, 
164.25 	whichever is later.

164.26 	EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval, 
164.27 	whichever is later. The commissioner of human services must inform the revisor of statutes 
164.28 	when federal approval is obtained.

164.29 	Sec. 43. REVISOR INSTRUCTION.
 164.30 	The revisor of statutes, in consultation with the House Research Department; the Office 
164.31 	of Senate Counsel, Research and Fiscal Analysis; and the Department of Human Services 
164.32 	shall make necessary cross-reference changes and remove statutory cross-references in 
165.1 	Minnesota Statutes to conform with the renumbering in this act. The revisor may make 
165.2 	technical and other necessary changes to sentence structure to preserve the meaning of the 
165.3 	text. The revisor may alter the coding in this act to incorporate statutory changes made by 
165.4 	other law in the 2025 regular legislative session or a special session. If a provision stricken 
165.5 	in this act is also amended in the 2025 regular legislative session or a special session by 
165.6 	other law, the revisor shall merge the amendment into the numbering, notwithstanding 
165.7 	Minnesota Statutes, section 645.30.

165.8 	Sec. 44. REVISOR INSTRUCTION.
 165.9 	The revisor of statutes shall renumber each provision of Minnesota Statutes listed in 
165.10 	column A as amended in this act to the number listed in column B. The revisor shall also 
165.11 	make necessary cross-reference changes consistent with the renumbering.

165.12	Column A
	Column B
	
165.13	254B.05, subdivision 1, paragraph (a)
	254B.0501, subdivision 1
	
165.14	254B.05, subdivision 1, paragraph (i)
	254B.0501, subdivision 2
	
165.15	254B.05, subdivision 4
	254B.0501, subdivision 3
	
165.16	254B.05, subdivision 1, paragraph (b)
	254B.0501, subdivision 4
	
165.17	254B.05, subdivision 1, paragraph (c)
	254B.0501, subdivision 5
	
165.18	254B.05, subdivision 1, paragraph (d)
	254B.0501, subdivision 6, paragraph (a)
	
165.19	254B.05, subdivision 1, paragraph (e)
	254B.0501, subdivision 6, paragraph (b)
	
165.20	254B.05, subdivision 1, paragraph (f)
	254B.0501, subdivision 6, paragraph (c)
	
165.21	254B.05, subdivision 1, paragraph (g)
	254B.0501, subdivision 6, paragraph (d)
	
165.22	254B.05, subdivision 1, paragraph (h)
	254B.0501, subdivision 7
	
165.23	254B.05, subdivision 1b
	254B.0501, subdivision 8
	
165.24	254B.05, subdivision 2
	254B.0501, subdivision 9
	
165.25	254B.05, subdivision 3
	254B.0501, subdivision 10
	
165.26	254B.05, subdivision 1a, paragraph (a)
	254B.0503, subdivision 1, paragraph (a)
	
165.27	254B.05, subdivision 1a, paragraph (c)
	254B.0503, subdivision 1, paragraph (b)
	
165.28	254B.05, subdivision 1a, paragraph (d)
	254B.0503, subdivision 1, paragraph (c)
	
165.29	254B.05, subdivision 1a, paragraph (e)
	254B.0503, subdivision 1, paragraph (d)
	
165.30	254B.05, subdivision1a, paragraph (b)
	254B.0503, subdivision 2, paragraph (a)
	
165.31	254B.05, subdivision 1a, paragraph (e)
	254B.0503, subdivision 2, paragraph (b)
	
165.32	254B.05, subdivision 5, paragraph (a)
	254B.0505, subdivision 1
	
165.33	254B.05, subdivision 5, paragraph (c)
	254B.0505, subdivision 2
	
165.34	254B.05, subdivision 5, paragraph (d)
	254B.0505, subdivision 3
	
165.35	254B.05, subdivision 5, paragraph (e)
	254B.0505, subdivision 4
	
165.36	254B.05, subdivision 5, paragraph (f)
	254B.0505, subdivision 5
	
166.1	254B.05, subdivision 5, paragraph (g)
	254B.0505, subdivision 6
	
166.2	254B.05, subdivision 5, paragraph (h)
	254B.0505, subdivision 7
	
166.3	254B.05, subdivision 5, paragraph (i)
	254B.0505, subdivision 8
	
166.4
166.5	254B.05, subdivision 5, paragraph (b), first 
sentence
	254B.0507, subdivision 1
	
166.6
166.7	254B.05, subdivision 5, paragraph (b), clause 
(1), items (i) and (ii)
	254B.0507, subdivision 2, paragraph (a)
	
166.8
166.9	254B.05, subdivision 5, paragraph (b), block 
left paragraph
	254B.0507, subdivision 2, paragraph (b)
	
166.10
166.11	254B.05, subdivision 5, paragraph (b), clause 
(2)
	254B.0507, subdivision 3
	
166.12
166.13	254B.05, subdivision 5, paragraph (b), clause 
(3)
	254B.0507, subdivision 4
	
166.14
166.15	254B.05, subdivision 5, paragraph (b), clause 
(4)
	254B.0507, subdivision 5
	
166.16
166.17	254B.05, subdivision 5, paragraph (b), clause 
(5)
	254B.0507, subdivision 6, paragraph (a)
	
166.18
166.19	254B.05, subdivision 5, paragraph (b), clause 
(5), block left paragraph
	254B.0507, subdivision 6, paragraph (b)
	
166.20	254B.05, subdivision 6, paragraph (a)
	254B.0509, subdivision 1
	
166.21	254B.05, subdivision 6, paragraph (b)
	254B.0509, subdivision 2
	
166.22	254B.05, subdivision 1, paragraph (j)
	254B.052, subdivision 4
	
166.23	254B.05, subdivision 5, paragraph (j)
	254B.052, subdivision 5

166.24 	Sec. 45. REVISOR INSTRUCTION.
 166.25 	The revisor of statutes shall change the terms "mental health practitioner" and "mental 
166.26 	health practitioners" to "behavioral health practitioner" or "behavioral health practitioners" 
166.27 	wherever they appear in Minnesota Statutes, chapter 245I.

166.28 	Sec. 46. REPEALER.
 166.29 	Minnesota Statutes 2024, sections 245G.01, subdivision 20d; 245G.07, subdivision 2; 
166.30 	254B.01, subdivision 5; and 254B.18, are repealed.

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

167.1 	ARTICLE 4
167.2 	HOUSING SUPPORTS

167.3 	Section 1. Minnesota Statutes 2024, section 256I.05, is amended by adding a subdivision 
167.4 	to read:
167.5 		Subd. 1v.Supplemental rate; Blue Earth County. Notwithstanding the provisions of 
167.6 	subdivisions 1a and 1c, beginning July 1, 2025, a county agency shall negotiate a 
167.7 	supplementary rate in addition to the rate specified in subdivision 1, not to exceed $750 per 
167.8 	month, including any legislatively authorized inflationary adjustments, for a housing support 
167.9 	provider located in Blue Earth County that operates a long-term residential facility that 
167.10 	opened in 2007 in Garden City with a total of 20 beds that serves chemically dependent 
167.11 	women and provides 24-hour-a-day supervision and other support services.

167.12 	Sec. 2. Minnesota Statutes 2024, section 256I.05, is amended by adding a subdivision to 
167.13 	read:
167.14 		Subd. 1w.Supplemental rate; Otter Tail County. Notwithstanding the provisions in 
167.15 	this section, beginning July 1, 2025, a county agency shall negotiate a supplemental rate 
167.16 	for up to 24 beds in addition to the rate specified in subdivision 1, not to exceed the maximum 
167.17 	rate allowed under subdivision 1a, including any legislatively authorized inflationary 
167.18 	adjustments, for housing support providers located in Otter Tail County that operate facilities 
167.19 	and provide room and board and supplementary services to adults recovering from substance 
167.20 	use disorder, mental illness, or housing instability.

167.21 	ARTICLE 5
167.22 	HEALTH CARE

167.23 	Section 1. Minnesota Statutes 2024, section 256.01, subdivision 29, is amended to read:
167.24 		Subd. 29.State medical review team. (a) To ensure the timely processing of 
167.25 	determinations of disability by the commissioner's state medical review team under sections 
167.26 	256B.055, subdivisions 7, paragraph (b), and 12, and 256B.057, subdivision 9, the 
167.27 	commissioner shall review all medical evidence and seek information from providers, 
167.28 	applicants, and enrollees to support the determination of disability where necessary. Disability 
167.29 	shall be determined according to the rules of title XVI and title XIX of the Social Security 
167.30 	Act and pertinent rules and policies of the Social Security Administration.
168.1 	(b) Medical assistance providers must grant the state medical review team access to 
168.2 	electronic health records held by the medical assistance providers, when available, to support 
168.3 	efficient and accurate disability determinations.
168.4 	(c) Medicaid providers shall accept electronically signed authorizations to release medical 
168.5 	records provided by the state medical review team.
168.6 	(b) (d) Prior to a denial or withdrawal of a requested determination of disability due to 
168.7 	insufficient evidence, the commissioner shall (1) ensure that the missing evidence is necessary 
168.8 	and appropriate to a determination of disability, and (2) assist applicants and enrollees to 
168.9 	obtain the evidence, including, but not limited to, medical examinations and electronic 
168.10 	medical records.
168.11 	(c) (e) Any appeal made under section 256.045, subdivision 3, of a disability 
168.12 	determination made by the state medical review team must be decided according to the 
168.13 	timelines under section 256.0451, subdivision 22, paragraph (a). If a written decision is not 
168.14 	issued within the timelines under section 256.0451, subdivision 22, paragraph (a), the appeal 
168.15 	must be immediately reviewed by the chief human services judge.

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

168.17 	Sec. 2. Minnesota Statutes 2024, section 256B.0625, subdivision 17, is amended to read:
168.18 		Subd. 17.Transportation costs. (a) "Nonemergency medical transportation service" 
168.19 	means motor vehicle transportation provided by a public or private person that serves 
168.20 	Minnesota health care program beneficiaries who do not require emergency ambulance 
168.21 	service, as defined in section 144E.001, subdivision 3, to obtain covered medical services.
168.22 	(b) For purposes of this subdivision, "rural urban commuting area" or "RUCA" means 
168.23 	a census-tract based classification system under which a geographical area is determined 
168.24 	to be urban, rural, or super rural.
168.25 	(c) Medical assistance covers medical transportation costs incurred solely for obtaining 
168.26 	emergency medical care or transportation costs incurred by eligible persons in obtaining 
168.27 	emergency or nonemergency medical care when paid directly to an ambulance company, 
168.28 	nonemergency medical transportation company, or other recognized providers of 
168.29 	transportation services. Medical transportation must be provided by:
168.30 	(1) nonemergency medical transportation providers who meet the requirements of this 
168.31 	subdivision;
168.32 	(2) ambulances, as defined in section 144E.001, subdivision 2;
169.1 	(3) taxicabs that meet the requirements of this subdivision;
169.2 	(4) public transportation, within the meaning of "public transportation" as defined in 
169.3 	section 174.22, subdivision 7; or
169.4 	(5) not-for-hire vehicles, including volunteer drivers, as defined in section 65B.472, 
169.5 	subdivision 1, paragraph (p).
169.6 	(d) Medical assistance covers nonemergency medical transportation provided by 
169.7 	nonemergency medical transportation providers enrolled in the Minnesota health care 
169.8 	programs. All nonemergency medical transportation providers must comply with the 
169.9 	operating standards for special transportation service as defined in sections 174.29 to 174.30 
169.10 	and Minnesota Rules, chapter 8840, and all drivers must be individually enrolled with the 
169.11 	commissioner and reported on the claim as the individual who provided the service. All 
169.12 	nonemergency medical transportation providers shall bill for nonemergency medical 
169.13 	transportation services in accordance with Minnesota health care programs criteria. Publicly 
169.14 	operated transit systems, volunteers, and not-for-hire vehicles are exempt from the 
169.15 	requirements outlined in this paragraph.
169.16 	(e) An organization may be terminated, denied, or suspended from enrollment if:
169.17 	(1) the provider has not initiated background studies on the individuals specified in 
169.18 	section 174.30, subdivision 10, paragraph (a), clauses (1) to (3); or
169.19 	(2) the provider has initiated background studies on the individuals specified in section 
169.20 	174.30, subdivision 10, paragraph (a), clauses (1) to (3), and:
169.21 	(i) the commissioner has sent the provider a notice that the individual has been 
169.22 	disqualified under section 245C.14; and
169.23 	(ii) the individual has not received a disqualification set-aside specific to the special 
169.24 	transportation services provider under sections 245C.22 and 245C.23.
169.25 	(f) The administrative agency of nonemergency medical transportation must:
169.26 	(1) adhere to the policies defined by the commissioner;
169.27 	(2) pay nonemergency medical transportation providers for services provided to 
169.28 	Minnesota health care programs beneficiaries to obtain covered medical services;
169.29 	(3) provide data monthly to the commissioner on appeals, complaints, no-shows, canceled 
169.30 	trips, and number of trips by mode; and
169.31 	(4) by July 1, 2016, in accordance with subdivision 18e, utilize a web-based single 
169.32 	administrative structure assessment tool that meets the technical requirements established 
170.1 	by the commissioner, reconciles trip information with claims being submitted by providers, 
170.2 	and ensures prompt payment for nonemergency medical transportation services.
170.3 	(g) Until the commissioner implements the single administrative structure and delivery 
170.4 	system under subdivision 18e, clients shall obtain their level-of-service certificate from the 
170.5 	commissioner or an entity approved by the commissioner that does not dispatch rides for 
170.6 	clients using modes of transportation under paragraph (l), clauses (4), (5), (6), and (7).
170.7 	(h) The commissioner may use an order by the recipient's attending physician, advanced 
170.8 	practice registered nurse, physician assistant, or a medical or mental health professional to 
170.9 	certify that the recipient requires nonemergency medical transportation services. 
170.10 	Nonemergency medical transportation providers shall perform driver-assisted services for 
170.11 	eligible individuals, when appropriate. Driver-assisted service includes passenger pickup 
170.12 	at and return to the individual's residence or place of business, assistance with admittance 
170.13 	of the individual to the medical facility, and assistance in passenger securement or in securing 
170.14 	of wheelchairs, child seats, or stretchers in the vehicle.
170.15 	(i) Nonemergency medical transportation providers must take clients to the health care 
170.16 	provider using the most direct route, and must not exceed 30 miles for a trip to a primary 
170.17 	care provider or 60 miles for a trip to a specialty care provider, unless the client receives 
170.18 	authorization from the local agency.
170.19 	(j) Nonemergency medical transportation providers may not bill for separate base rates 
170.20 	for the continuation of a trip beyond the original destination. Nonemergency medical 
170.21 	transportation providers must maintain trip logs, which include pickup and drop-off times, 
170.22 	signed by the medical provider or client, whichever is deemed most appropriate, attesting 
170.23 	to mileage traveled to obtain covered medical services. Clients requesting client mileage 
170.24 	reimbursement must sign the trip log attesting mileage traveled to obtain covered medical 
170.25 	services.
170.26 	(k) The administrative agency shall use the level of service process established by the 
170.27 	commissioner to determine the client's most appropriate mode of transportation. If public 
170.28 	transit or a certified transportation provider is not available to provide the appropriate service 
170.29 	mode for the client, the client may receive a onetime service upgrade.
170.30 	(l) The covered modes of transportation are:
170.31 	(1) client reimbursement, which includes client mileage reimbursement provided to 
170.32 	clients who have their own transportation, or to family or an acquaintance who provides 
170.33 	transportation to the client;
171.1 	(2) volunteer transport, which includes transportation by volunteers using their own 
171.2 	vehicle;
171.3 	(3) unassisted transport, which includes transportation provided to a client by a taxicab 
171.4 	or public transit. If a taxicab or public transit is not available, the client can receive 
171.5 	transportation from another nonemergency medical transportation provider;
171.6 	(4) assisted transport, which includes transport provided to clients who require assistance 
171.7 	by a nonemergency medical transportation provider;
171.8 	(5) lift-equipped/ramp transport, which includes transport provided to a client who is 
171.9 	dependent on a device and requires a nonemergency medical transportation provider with 
171.10 	a vehicle containing a lift or ramp;
171.11 	(6) protected transport, which includes transport provided to a client who has received 
171.12 	a prescreening that has deemed other forms of transportation inappropriate and who requires 
171.13 	a provider: (i) with a protected vehicle that is not an ambulance or police car and has safety 
171.14 	locks, a video recorder, and a transparent thermoplastic partition between the passenger and 
171.15 	the vehicle driver; and (ii) who is certified as a protected transport provider; and
171.16 	(7) stretcher transport, which includes transport for a client in a prone or supine position 
171.17 	and requires a nonemergency medical transportation provider with a vehicle that can transport 
171.18 	a client in a prone or supine position.
171.19 	(m) The local agency shall be the single administrative agency and shall administer and 
171.20 	reimburse for modes defined in paragraph (l) according to paragraphs (p) and (q) when the 
171.21 	commissioner has developed, made available, and funded the web-based single administrative 
171.22 	structure, assessment tool, and level of need assessment under subdivision 18e. The local 
171.23 	agency's financial obligation is limited to funds provided by the state or federal government.
171.24 	(n) The commissioner shall:
171.25 	(1) verify that the mode and use of nonemergency medical transportation is appropriate;
171.26 	(2) verify that the client is going to an approved medical appointment; and
171.27 	(3) investigate all complaints and appeals.
171.28 	(o) The administrative agency shall pay for the services provided in this subdivision and 
171.29 	seek reimbursement from the commissioner, if appropriate. As vendors of medical care, 
171.30 	local agencies are subject to the provisions in section 256B.041, the sanctions and monetary 
171.31 	recovery actions in section 256B.064, and Minnesota Rules, parts 9505.2160 to 9505.2245.
172.1 	(p) Payments for nonemergency medical transportation must be paid based on the client's 
172.2 	assessed mode under paragraph (k), not the type of vehicle used to provide the service. The 
172.3 	medical assistance reimbursement rates for nonemergency medical transportation services 
172.4 	that are payable by or on behalf of the commissioner for nonemergency medical 
172.5 	transportation services are:
172.6 	(1) $0.22 per mile for client reimbursement;
172.7 	(2) up to 100 percent of the Internal Revenue Service business deduction rate for volunteer 
172.8 	transport;
172.9 	(3) equivalent to the standard fare for unassisted transport when provided by public 
172.10 	transit, and $12.10 for the base rate and $1.43 per mile when provided by a nonemergency 
172.11 	medical transportation provider;
172.12 	(4) $14.30 for the base rate and $1.43 per mile for assisted transport;
172.13 	(5) $19.80 for the base rate and $1.70 per mile for lift-equipped/ramp transport;
172.14 	(6) $75 for the base rate for the first 100 miles and an additional $75 for trips over 100 
172.15 	miles and $2.40 per mile for protected transport; and
172.16 	(7) $60 for the base rate and $2.40 per mile for stretcher transport, and $9 per trip for 
172.17 	an additional attendant if deemed medically necessary.
172.18 	(q) The base rate for nonemergency medical transportation services in areas defined 
172.19 	under RUCA to be super rural is equal to 111.3 percent of the respective base rate in 
172.20 	paragraph (p), clauses (1) to (7). The mileage rate for nonemergency medical transportation 
172.21 	services in areas defined under RUCA to be rural or super rural areas is:
172.22 	(1) for a trip equal to 17 miles or less, equal to 125 percent of the respective mileage 
172.23 	rate in paragraph (p), clauses (1) to (7); and
172.24 	(2) for a trip between 18 and 50 miles, equal to 112.5 percent of the respective mileage 
172.25 	rate in paragraph (p), clauses (1) to (7).
172.26 	(r) For purposes of reimbursement rates for nonemergency medical transportation services 
172.27 	under paragraphs (p) and (q), the zip code of the recipient's place of residence shall determine 
172.28 	whether the urban, rural, or super rural reimbursement rate applies.
172.29 	(s) The commissioner, when determining reimbursement rates for nonemergency medical 
172.30 	transportation under paragraphs (p) and (q), shall exempt all modes of transportation listed 
172.31 	under paragraph (l) from Minnesota Rules, part 9505.0445, item R, subitem (2).
173.1 	(t) Effective for the first day of each calendar quarter in which the price of gasoline as 
173.2 	posted publicly by the United States Energy Information Administration exceeds $3.00 per 
173.3 	gallon, the commissioner shall adjust the rate paid per mile in paragraph (p) by one percent 
173.4 	up or down for every increase or decrease of ten cents for the price of gasoline. The increase 
173.5 	or decrease must be calculated using a base gasoline price of $3.00. The percentage increase 
173.6 	or decrease must be calculated using the average of the most recently available price of all 
173.7 	grades of gasoline for Minnesota as posted publicly by the United States Energy Information 
173.8 	Administration.

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

173.10 	Sec. 3. Minnesota Statutes 2024, section 256B.766, is amended to read:
173.11 	256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES.
173.12 		Subdivision 1.Payment reductions for base care services effective July 1, 2009. (a)
173.13 	Effective for services provided on or after July 1, 2009, total payments for basic care services, 
173.14 	shall be reduced by three percent, except that for the period July 1, 2009, through June 30, 
173.15 	2011, total payments shall be reduced by 4.5 percent for the medical assistance and general 
173.16 	assistance medical care programs, prior to third-party liability and spenddown calculation.
173.17 		Subd. 2.Classification of therapies as basic care services. Effective July 1, 2010, The 
173.18 	commissioner shall classify physical therapy services, occupational therapy services, and 
173.19 	speech-language pathology and related services as basic care services. The reduction in this 
173.20 	paragraph subdivision 1 shall apply to physical therapy services, occupational therapy 
173.21 	services, and speech-language pathology and related services provided on or after July 1, 
173.22 	2010.
173.23 		Subd. 3.Payment reductions to managed care plans effective October 1, 2009. (b)
173.24 	Payments made to managed care plans and county-based purchasing plans shall be reduced 
173.25 	for services provided on or after October 1, 2009, to reflect the reduction in subdivision 1 
173.26 	effective July 1, 2009, and payments made to the plans shall be reduced effective October 
173.27 	1, 2010, to reflect the reduction in subdivision 1 effective July 1, 2010.
173.28 		Subd. 4.Temporary payment reductions effective September 1, 2011. (c) (a) Effective 
173.29 	for services provided on or after September 1, 2011, through June 30, 2013, total payments 
173.30 	for outpatient hospital facility fees shall be reduced by five percent from the rates in effect 
173.31 	on August 31, 2011.
173.32 	(d) (b) Effective for services provided on or after September 1, 2011, through June 30, 
173.33 	2013, total payments for ambulatory surgery centers facility fees, medical supplies and 
174.1 	durable medical equipment not subject to a volume purchase contract, prosthetics and 
174.2 	orthotics, renal dialysis services, laboratory services, public health nursing services, physical 
174.3 	therapy services, occupational therapy services, speech therapy services, eyeglasses not 
174.4 	subject to a volume purchase contract, hearing aids not subject to a volume purchase contract, 
174.5 	and anesthesia services shall be reduced by three percent from the rates in effect on August 
174.6 	31, 2011.
174.7 		Subd. 5.Payment increases effective September 1, 2014. (e) (a) Effective for services 
174.8 	provided on or after September 1, 2014, payments for ambulatory surgery centers facility 
174.9 	fees, hospice services, renal dialysis services, laboratory services, public health nursing 
174.10 	services, eyeglasses not subject to a volume purchase contract, and hearing aids not subject 
174.11 	to a volume purchase contract shall be increased by three percent and payments for outpatient 
174.12 	hospital facility fees shall be increased by three percent.
174.13 	(b) Payments made to managed care plans and county-based purchasing plans shall not 
174.14 	be adjusted to reflect payments under this paragraph subdivision.
174.15 		Subd. 6.Temporary payment reductions effective July 1, 2014. (f) Payments for 
174.16 	medical supplies and durable medical equipment not subject to a volume purchase contract, 
174.17 	and prosthetics and orthotics, provided on or after July 1, 2014, through June 30, 2015, shall 
174.18 	be decreased by .33 percent.
174.19 		Subd. 7.Payment increases effective July 1, 2015. (a) Payments for medical supplies 
174.20 	and durable medical equipment not subject to a volume purchase contract, and prosthetics 
174.21 	and orthotics, provided on or after July 1, 2015, shall be increased by three percent from 
174.22 	the rates as determined under paragraphs (i) and (j) subdivisions 9 and 10.
174.23 	(g) (b) Effective for services provided on or after July 1, 2015, payments for outpatient 
174.24 	hospital facility fees, medical supplies and durable medical equipment not subject to a 
174.25 	volume purchase contract, prosthetics, and orthotics to a hospital meeting the criteria specified 
174.26 	in section 62Q.19, subdivision 1, paragraph (a), clause (4), shall be increased by 90 percent 
174.27 	from the rates in effect on June 30, 2015.
174.28 	(c) Payments made to managed care plans and county-based purchasing plans shall not 
174.29 	be adjusted to reflect payments under this paragraph (b).
174.30 		Subd. 8.Exempt services. (h) This section does not apply to physician and professional 
174.31 	services, inpatient hospital services, family planning services, mental health services, dental 
174.32 	services, prescription drugs, medical transportation, federally qualified health centers, rural 
174.33 	health centers, Indian health services, and Medicare cost-sharing.
175.1 		Subd. 9.Individually priced items. (i) (a) Effective for services provided on or after 
175.2 	July 1, 2015, the following categories of medical supplies and durable medical equipment 
175.3 	shall be individually priced items: customized and other specialized tracheostomy tubes 
175.4 	and supplies, electric patient lifts, and durable medical equipment repair and service.
175.5 	(b) This paragraph subdivision does not apply to medical supplies and durable medical 
175.6 	equipment subject to a volume purchase contract, products subject to the preferred diabetic 
175.7 	testing supply program, and items provided to dually eligible recipients when Medicare is 
175.8 	the primary payer for the item.
175.9 	(c) The commissioner shall not apply any medical assistance rate reductions to durable 
175.10 	medical equipment as a result of Medicare competitive bidding.
175.11 		Subd. 10.Rate increases effective July 1, 2015. (j) (a) Effective for services provided 
175.12 	on or after July 1, 2015, medical assistance payment rates for durable medical equipment, 
175.13 	prosthetics, orthotics, or supplies shall be increased as follows:
175.14 	(1) payment rates for durable medical equipment, prosthetics, orthotics, or supplies that 
175.15 	were subject to the Medicare competitive bid that took effect in January of 2009 shall be 
175.16 	increased by 9.5 percent; and
175.17 	(2) payment rates for durable medical equipment, prosthetics, orthotics, or supplies on 
175.18 	the medical assistance fee schedule, whether or not subject to the Medicare competitive bid 
175.19 	that took effect in January of 2009, shall be increased by 2.94 percent, with this increase 
175.20 	being applied after calculation of any increased payment rate under clause (1).
175.21 	This (b) Paragraph (a) does not apply to medical supplies and durable medical equipment 
175.22 	subject to a volume purchase contract, products subject to the preferred diabetic testing 
175.23 	supply program, items provided to dually eligible recipients when Medicare is the primary 
175.24 	payer for the item, and individually priced items identified in paragraph (i) subdivision 9.
175.25 	(c) Payments made to managed care plans and county-based purchasing plans shall not 
175.26 	be adjusted to reflect the rate increases in this paragraph subdivision.
175.27 		Subd. 11.Rates for ventilators. (k) (a) Effective for nonpressure support ventilators 
175.28 	provided on or after January 1, 2016, the rate shall be the lower of the submitted charge or 
175.29 	the Medicare fee schedule rate.
175.30 	(b) Effective for pressure support ventilators provided on or after January 1, 2016, the 
175.31 	rate shall be the lower of the submitted charge or 47 percent above the Medicare fee schedule 
175.32 	rate.
176.1 	(c) For payments made in accordance with this paragraph subdivision, if, and to the 
176.2 	extent that, the commissioner identifies that the state has received federal financial 
176.3 	participation for ventilators in excess of the amount allowed effective January 1, 2018, 
176.4 	under United States Code, title 42, section 1396b(i)(27), the state shall repay the excess 
176.5 	amount to the Centers for Medicare and Medicaid Services with state funds and maintain 
176.6 	the full payment rate under this paragraph subdivision.
176.7 		Subd. 12.Rates subject to the upper payment limit. (l) Payment rates for durable 
176.8 	medical equipment, prosthetics, orthotics or supplies, that are subject to the upper payment 
176.9 	limit in accordance with section 1903(i)(27) of the Social Security Act, shall be paid the 
176.10 	Medicare rate. Rate increases provided in this chapter shall not be applied to the items listed 
176.11 	in this paragraph subdivision.
176.12 		Subd. 13.Temporary rates for enteral nutrition and supplies. (m) (a) For dates of 
176.13 	service on or after July 1, 2023, through June 30, 2025 2027, enteral nutrition and supplies 
176.14 	must be paid according to this paragraph subdivision. If sufficient data exists for a product 
176.15 	or supply, payment must be based upon the 50th percentile of the usual and customary 
176.16 	charges per product code submitted to the commissioner, using only charges submitted per 
176.17 	unit. Increases in rates resulting from the 50th percentile payment method must not exceed 
176.18 	150 percent of the previous fiscal year's rate per code and product combination. Data are 
176.19 	sufficient if: (1) the commissioner has at least 100 paid claim lines by at least ten different 
176.20 	providers for a given product or supply; or (2) in the absence of the data in clause (1), the 
176.21 	commissioner has at least 20 claim lines by at least five different providers for a product or 
176.22 	supply that does not meet the requirements of clause (1). If sufficient data are not available 
176.23 	to calculate the 50th percentile for enteral products or supplies, the payment rate must be 
176.24 	the payment rate in effect on June 30, 2023.
176.25 	(b) This subdivision expires June 30, 2027.
176.26 		Subd. 14.Rates for enteral nutrition and supplies. (n) For dates of service on or after 
176.27 	July 1, 2025 2027, enteral nutrition and supplies must be paid according to this paragraph
176.28 	subdivision and updated annually each January 1. If sufficient data exists for a product or 
176.29 	supply, payment must be based upon the 50th percentile of the usual and customary charges 
176.30 	per product code submitted to the commissioner for the previous calendar year, using only 
176.31 	charges submitted per unit. Increases in rates resulting from the 50th percentile payment 
176.32 	method must not exceed 150 percent of the previous year's rate per code and product 
176.33 	combination. Data are sufficient if: (1) the commissioner has at least 100 paid claim lines 
176.34 	by at least ten different providers for a given product or supply; or (2) in the absence of the 
176.35 	data in clause (1), the commissioner has at least 20 claim lines by at least five different 
177.1 	providers for a product or supply that does not meet the requirements of clause (1). If 
177.2 	sufficient data are not available to calculate the 50th percentile for enteral products or 
177.3 	supplies, the payment must be the manufacturer's suggested retail price of that product or 
177.4 	supply minus 20 percent. If the manufacturer's suggested retail price is not available, payment 
177.5 	must be the actual acquisition cost of that product or supply plus 20 percent.

177.6 	Sec. 4. SINGLE ADMINISTRATIVE STRUCTURE AND DELIVERY SYSTEM 
177.7 	PILOT PROGRAM.
 177.8 	(a) By January 1, 2026, the commissioner of human services, in coordination with the 
177.9 	commissioner of transportation, must implement one or two pilot programs for a web-based 
177.10 	single administrative structure and delivery system for nonemergency medical transportation 
177.11 	under medical assistance and MinnesotaCare. The administrative structure and delivery 
177.12 	system must meet the requirements in paragraph (b). Each pilot program must include at 
177.13 	least two counties. Metropolitan counties, as defined in Minnesota Statutes, section 473.121, 
177.14 	subdivision 4, are not eligible to participate. Each pilot program shall operate for three years 
177.15 	from the date of implementation.
177.16 	(b) The web-based single administrative structure and delivery system must provide for 
177.17 	the following:
177.18 	(1) bidirectional communication between payers and transportation providers;
177.19 	(2) client and client advocate access to ride scheduling and real-time trip monitoring;
177.20 	(3) real-time eligibility and level of service determination;
177.21 	(4) on-demand reporting;
177.22 	(5) expedited payments for transportation providers; and
177.23 	(6) the ability to collect feedback, including but not limited to complaints regarding 
177.24 	inappropriate level of needs determinations, utilization of inappropriate transportation modes, 
177.25 	and interference with accessing nonemergency medical transportation.
177.26 	(c) By February 1, 2027, and each year thereafter that a pilot program is in effect, the 
177.27 	commissioner must submit a report on the pilot programs to the legislative committees with 
177.28 	jurisdiction over nonemergency medical transportation under medical assistance and 
177.29 	MinnesotaCare.

178.1 	ARTICLE 6
178.2 	DIRECT CARE AND TREATMENT

178.3 	Section 1. [246.0142] FREE COMMUNICATION SERVICES FOR PATIENTS AND 
178.4 	CLIENTS.
178.5 		Subdivision 1.Free communication services. The commissioner of human services 
178.6 	and the Direct Care and Treatment executive board and all facilities, settings, and programs 
178.7 	owned, operated, or under the programmatic or fiscal control of the commissioner of human 
178.8 	services or the Direct Care and Treatment executive board are subject to section 241.252. 
178.9 	The commissioner and executive board must not include the cost of voice or other 
178.10 	communication services in the cost of care as defined under section 246.50 or 246B.01.
178.11 		Subd. 2.Communication service restrictions. Notwithstanding section 241.252, 
178.12 	subdivisions 2 and 4, nothing in this section entitles a civilly committed person to 
178.13 	communication services restricted or limited under section 253B.03, subdivision 3, or 
178.14 	253D.19.

178.15 	Sec. 2. Minnesota Statutes 2024, section 256G.08, subdivision 1, is amended to read:
178.16 		Subdivision 1.Commitment and competency proceedings. In cases of voluntary 
178.17 	admission,or commitment to state or other institutions, or criminal orders for inpatient 
178.18 	examination or participation in a competency attainment program under chapter 611, the 
178.19 	committing county or the county from which the first criminal order for inpatient examination 
178.20 	or order for participation in a competency attainment program under chapter 611 is issued 
178.21 	shall initially pay for all costs. This includes the expenses of the taking into custody, 
178.22 	confinement, emergency holds under sections 253B.051, subdivisions 1 and 2, and 253B.07, 
178.23 	examination, commitment, conveyance to the place of detention, rehearing, and hearings 
178.24 	under section sections253B.092 and 611.47, including hearings held under that section 
178.25 	which those sections that are venued outside the county of commitment or the county of 
178.26 	the chapter 611 competency proceedings order.

178.27 	Sec. 3. Minnesota Statutes 2024, section 256G.08, subdivision 2, is amended to read:
178.28 		Subd. 2.Responsibility for nonresidents. If a person committed,or voluntarily admitted 
178.29 	to a state institution, or ordered for inpatient examination or participation in a competency 
178.30 	attainment program under chapter 611 has no residence in this state, financial responsibility 
178.31 	belongs to the county of commitment or the county from which the first criminal order for 
178.32 	inpatient examination or order for participation in a competency attainment program under 
178.33 	chapter 611 was issued.

179.1 	Sec. 4. Minnesota Statutes 2024, section 256G.09, subdivision 1, is amended to read:
179.2 		Subdivision 1.General procedures. If upon investigation the local agency decides that 
179.3 	the application,or commitment, or first criminal order under chapter 611 was not filed in 
179.4 	the county of financial responsibility as defined by this chapter, but that the applicant is 
179.5 	otherwise eligible for assistance, it shall send a copy of the application,or commitment 
179.6 	claim, or chapter 611 claim together with the record of any investigation it has made, to the 
179.7 	county it believes is financially responsible. The copy and record must be sent within 60 
179.8 	days of the date the application was approved or the claim was paid. The first local agency 
179.9 	shall provide assistance to the applicant until financial responsibility is transferred under 
179.10 	this section.
179.11 	The county receiving the transmittal has 30 days to accept or reject financial 
179.12 	responsibility. A failure to respond within 30 days establishes financial responsibility by 
179.13 	the receiving county.

179.14 	Sec. 5. Minnesota Statutes 2024, section 256G.09, subdivision 2, is amended to read:
179.15 		Subd. 2.Financial disputes. (a) If the county receiving the transmittal does not believe 
179.16 	it is financially responsible, it should provide to the commissioner of human services and 
179.17 	the initially responsible county a statement of all facts and documents necessary for the 
179.18 	commissioner to make the requested determination of financial responsibility. The submission 
179.19 	must clearly state the program area in dispute and must state the specific basis upon which 
179.20 	the submitting county is denying financial responsibility.
179.21 	(b) The initially responsible county then has 15 calendar days to submit its position and 
179.22 	any supporting evidence to the commissioner. The absence of a submission by the initially 
179.23 	responsible county does not limit the right of the commissioner of human services or Direct 
179.24 	Care and Treatment executive board to issue a binding opinion based on the evidence actually 
179.25 	submitted.
179.26 	(c) A case must not be submitted until the local agency taking the application,or making 
179.27 	the commitment, or issuing the first criminal order under chapter 611 has made an initial 
179.28 	determination about eligibility and financial responsibility, and services have been initiated. 
179.29 	This paragraph does not prohibit the submission of closed cases that otherwise meet the 
179.30 	applicable statute of limitations.

180.1 	Sec. 6. Minnesota Statutes 2024, section 611.43, is amended by adding a subdivision to 
180.2 	read:
180.3 		Subd. 5.Costs related to confined treatment. (a) When a defendant is ordered to 
180.4 	participate in an examination in a treatment facility, a locked treatment facility, or a 
180.5 	state-operated treatment facility under subdivision 1, paragraph (b), the facility shall bill 
180.6 	the responsible health plan first. The county in which the criminal charges are filed is 
180.7 	responsible to pay any charges not covered by the health plan, including co-pays and 
180.8 	deductibles. If the defendant has health plan coverage and is confined in a hospital, but the 
180.9 	hospitalization does not meet the criteria in section 62M.07, subdivision 2, clause (1); 
180.10 	62Q.53; 62Q.535, subdivision 1; or 253B.045, subdivision 6, the county in which criminal 
180.11 	charges are filed is responsible for payment.
180.12 	(b) The Direct Care and Treatment executive board shall determine the cost of 
180.13 	confinement in a state-operated treatment facility based on the executive board's 
180.14 	determination of cost of care pursuant to section 246.50, subdivision 5.

180.15 	Sec. 7. Minnesota Statutes 2024, section 611.46, subdivision 1, is amended to read:
180.16 		Subdivision 1.Order to competency attainment program. (a) If the court finds the 
180.17 	defendant incompetent and the charges have not been dismissed, the court shall order the 
180.18 	defendant to participate in a program to assist the defendant in attaining competency. The 
180.19 	court may order participation in a competency attainment program provided outside of a 
180.20 	jail, a jail-based competency attainment program, or an alternative program. The court must 
180.21 	determine the least-restrictive program appropriate to meet the defendant's needs and public 
180.22 	safety. In making this determination, the court must consult with the forensic navigator and 
180.23 	consider any recommendations of the court examiner. The court shall not order a defendant 
180.24 	to participate in a jail-based program or a state-operated treatment program if the highest 
180.25 	criminal charge is a targeted misdemeanor.
180.26 	(b) If the court orders the defendant to a locked treatment facility or jail-based program, 
180.27 	the court must calculate the defendant's custody credit and cannot order the defendant to a 
180.28 	locked treatment facility or jail-based program for a period that would cause the defendant's 
180.29 	custody credit to exceed the maximum sentence for the underlying charge.
180.30 	(c) The court may only order the defendant to participate in competency attainment at 
180.31 	an inpatient or residential treatment program under this section if the head of the treatment 
180.32 	program determines that admission to the program is clinically appropriate and consents to 
180.33 	the defendant's admission. The court may only order the defendant to participate in 
180.34 	competency attainment at a state-operated treatment facility under this section if the Direct 
181.1 	Care and Treatment executive board or a designee determines that admission of the defendant 
181.2 	is clinically appropriate and consents to the defendant's admission. The court may require 
181.3 	a competency program that qualifies as a locked facility or a state-operated treatment program 
181.4 	to notify the court in writing of the basis for refusing consent for admission of the defendant 
181.5 	in order to ensure transparency and maintain an accurate record. The court may not require 
181.6 	personal appearance of any representative of a competency program. The court shall send 
181.7 	a written request for notification to the locked facility or state-operated treatment program 
181.8 	and the locked facility or state-operated treatment program shall provide a written response 
181.9 	to the court within ten days of receipt of the court's request.
181.10 	(d) If the defendant is confined in jail and has not received competency attainment 
181.11 	services within 30 days of the finding of incompetency, the court shall review the case with 
181.12 	input from the prosecutor and defense counsel and may:
181.13 	(1) order the defendant to participate in an appropriate competency attainment program 
181.14 	that takes place outside of a jail;
181.15 	(2) order a conditional release of the defendant with conditions that include but are not 
181.16 	limited to a requirement that the defendant participate in a competency attainment program 
181.17 	when one becomes available and accessible;
181.18 	(3) make a determination as to whether the defendant is likely to attain competency in 
181.19 	the reasonably foreseeable future and proceed under section 611.49; or
181.20 	(4) upon a motion, dismiss the charges in the interest of justice.
181.21 	(e) The court may order any hospital, treatment facility, or correctional facility that has 
181.22 	provided care or supervision to a defendant in the previous two years to provide copies of 
181.23 	the defendant's medical records to the competency attainment program or alternative program 
181.24 	in which the defendant was ordered to participate. This information shall be provided in a 
181.25 	consistent and timely manner and pursuant to all applicable laws.
181.26 	(f) If at any time the defendant refuses to participate in a competency attainment program 
181.27 	or an alternative program, the head of the program shall notify the court and any entity 
181.28 	responsible for supervision of the defendant.
181.29 	(g) At any time, the head of the program may discharge the defendant from the program 
181.30 	or facility. The head of the program must notify the court, prosecutor, defense counsel, and 
181.31 	any entity responsible for the supervision of the defendant prior to any planned discharge. 
181.32 	Absent emergency circumstances, this notification shall be made five days prior to the 
181.33 	discharge if the defendant is not being discharged to jail or a correctional facility. Upon the 
182.1 	receipt of notification of discharge or upon the request of either party in response to 
182.2 	notification of discharge, the court may order that a defendant who is subject to bail or 
182.3 	unmet conditions of release be returned to jail upon being discharged from the program or 
182.4 	facility. If the court orders a defendant returned to jail, the court shall notify the parties and 
182.5 	head of the program at least one day before the defendant's planned discharge, except in 
182.6 	the event of an emergency discharge where one day notice is not possible. The court must 
182.7 	hold a review hearing within seven days of the defendant's return to jail. The forensic 
182.8 	navigator must be given notice of the hearing and be allowed to participate.
182.9 	(h) If the defendant is discharged from the program or facility under emergency 
182.10 	circumstances, notification of emergency discharge shall include a description of the 
182.11 	emergency circumstances and may include a request for emergency transportation. The 
182.12 	court shall make a determination on a request for emergency transportation within 24 hours. 
182.13 	Nothing in this section prohibits a law enforcement agency from transporting a defendant 
182.14 	pursuant to any other authority.
182.15 	(i) If the defendant is ordered to participate in an inpatient or residential competency 
182.16 	attainment or alternative program, the program or facility must notify the court, prosecutor, 
182.17 	defense counsel, forensic navigator, and any entity responsible for the supervision of the 
182.18 	defendant if the defendant is placed on a leave or elopement status from the program and 
182.19 	if the defendant returns to the program from a leave or elopement status.
182.20 	(j) Defense counsel, prosecutors, and forensic navigators must have access to information 
182.21 	relevant to a defendant's participation and treatment in a competency attainment program 
182.22 	or alternative program, including but not limited to discharge planning.

182.23 	Sec. 8. Minnesota Statutes 2024, section 611.55, is amended by adding a subdivision to 
182.24 	read:
182.25 		Subd. 5.Data access. Forensic navigators must have access to all data collected, created, 
182.26 	or maintained by a competency attainment program or an alternative program regarding a 
182.27 	defendant in order for navigators to carry out their duties under this section. A competency 
182.28 	attainment program or alternative program may request a copy of the court order appointing 
182.29 	the forensic navigator before disclosing any private information about a defendant.

183.1 	ARTICLE 7
183.2 	DEPARTMENT OF DIRECT CARE AND TREATMENT ESTABLISHMENT

183.3 	Section 1. Minnesota Statutes 2024, section 10.65, subdivision 2, is amended to read:
183.4 		Subd. 2.Definitions. As used in this section, the following terms have the meanings 
183.5 	given:
183.6 	(1) "agency" means the Department of Administration; Department of Agriculture; 
183.7 	Department of Children, Youth, and Families; Department of Commerce; Department of 
183.8 	Corrections; Department of Direct Care and Treatment; Department of Education; Department 
183.9 	of Employment and Economic Development; Department of Health; Office of Higher 
183.10 	Education; Housing Finance Agency; Department of Human Rights; Department of Human 
183.11 	Services; Department of Information Technology Services; Department of Iron Range 
183.12 	Resources and Rehabilitation; Department of Labor and Industry; Minnesota Management 
183.13 	and Budget; Bureau of Mediation Services; Department of Military Affairs; Metropolitan 
183.14 	Council; Department of Natural Resources; Pollution Control Agency; Department of Public 
183.15 	Safety; Department of Revenue; Department of Transportation; Department of Veterans 
183.16 	Affairs; Direct Care and Treatment; Gambling Control Board; Racing Commission; the 
183.17 	Minnesota Lottery; the Animal Health Board; the Public Utilities Commission; and the 
183.18 	Board of Water and Soil Resources;
183.19 	(2) "consultation" means the direct and interactive involvement of the Minnesota Tribal 
183.20 	governments in the development of policy on matters that have Tribal implications. 
183.21 	Consultation is the proactive, affirmative process of identifying and seeking input from 
183.22 	appropriate Tribal governments and considering their interest as a necessary and integral 
183.23 	part of the decision-making process. This definition adds to statutorily mandated notification 
183.24 	procedures. During a consultation, the burden is on the agency to show that it has made a 
183.25 	good faith effort to elicit feedback. Consultation is a formal engagement between agency 
183.26 	officials and the governing body or bodies of an individual Minnesota Tribal government 
183.27 	that the agency or an individual Tribal government may initiate. Formal meetings or 
183.28 	communication between top agency officials and the governing body of a Minnesota Tribal 
183.29 	government is a necessary element of consultation;
183.30 	(3) "matters that have Tribal implications" means rules, legislative proposals, policy 
183.31 	statements, or other actions that have substantial direct effects on one or more Minnesota 
183.32 	Tribal governments, or on the distribution of power and responsibilities between the state 
183.33 	and Minnesota Tribal governments;
184.1 	(4) "Minnesota Tribal governments" means the federally recognized Indian Tribes located 
184.2 	in Minnesota including: Bois Forte Band; Fond Du Lac Band; Grand Portage Band; Leech 
184.3 	Lake Band; Mille Lacs Band; White Earth Band; Red Lake Nation; Lower Sioux Indian 
184.4 	Community; Prairie Island Indian Community; Shakopee Mdewakanton Sioux Community; 
184.5 	and Upper Sioux Community; and
184.6 	(5) "timely and meaningful" means done or occurring at a favorable or useful time that 
184.7 	allows the result of consultation to be included in the agency's decision-making process for 
184.8 	a matter that has Tribal implications.

184.9 	Sec. 2. Minnesota Statutes 2024, section 15.01, is amended to read:
184.10 	15.01 DEPARTMENTS OF THE STATE.
184.11 	The following agencies are designated as the departments of the state government: the 
184.12 	Department of Administration; the Department of Agriculture; the Department of Children, 
184.13 	Youth, and Families; the Department of Commerce; the Department of Corrections; the 
184.14 	Department of Direct Care and Treatment; the Department of Education; the Department 
184.15 	of Employment and Economic Development; the Department of Health; the Department of 
184.16 	Human Rights; the Department of Human Services; the Department of Information 
184.17 	Technology Services; the Department of Iron Range Resources and Rehabilitation; the 
184.18 	Department of Labor and Industry; the Department of Management and Budget; the 
184.19 	Department of Military Affairs; the Department of Natural Resources; the Department of 
184.20 	Public Safety; the Department of Revenue; the Department of Transportation; the Department 
184.21 	of Veterans Affairs; and their successor departments.

184.22 	Sec. 3. Minnesota Statutes 2024, section 15.06, subdivision 1, is amended to read:
184.23 		Subdivision 1.Applicability. This section applies to the following departments or 
184.24 	agencies: the Departments of Administration; Agriculture; Children, Youth, and Families; 
184.25 	Commerce; Corrections; Direct Care and Treatment; Education; Employment and Economic 
184.26 	Development; Health; Human Rights; Human Services; Iron Range Resources and 
184.27 	Rehabilitation; Labor and Industry; Management and Budget; Natural Resources; Public 
184.28 	Safety; Revenue; Transportation; and Veterans Affairs; the Housing Finance and Pollution 
184.29 	Control Agencies; the Department of Information Technology Services; the Bureau of 
184.30 	Mediation Services; and their successor departments and agencies. The heads of the foregoing 
184.31 	departments or agencies are "commissioners."

185.1 	Sec. 4. Minnesota Statutes 2024, section 43A.241, is amended to read:
185.2 	43A.241 INSURANCE CONTRIBUTIONS; FORMER EMPLOYEES.
185.3 	(a) This section applies to a person who:
185.4 	(1) was employed by the commissioner of corrections, the commissioner of human 
185.5 	services, or the commissioner of direct care and treatment executive board;
185.6 	(2) was covered by the correctional employee retirement plan under section 352.91 or 
185.7 	the general state employees retirement plan of the Minnesota State Retirement System as 
185.8 	defined in section 352.021;
185.9 	(3) while employed under clause (1), was assaulted by:
185.10 	(i) a person under correctional supervision for a criminal offense; or
185.11 	(ii) a client or patient at the Minnesota Sex Offender Program, or at a state-operated 
185.12 	forensic services program as defined in section 352.91, subdivision 3j; and
185.13 	(4) as a direct result of the assault under clause (3), was determined to be totally and 
185.14 	permanently physically disabled under laws governing the Minnesota State Retirement 
185.15 	System.
185.16 	(b) For a person to whom this section applies, the commissioner of corrections, the 
185.17 	commissioner of human services, or the commissioner of direct care and treatment executive 
185.18 	board, using existing budget resources, must continue to make the employer contribution 
185.19 	for medical and dental benefits under the State Employee Group Insurance Program after 
185.20 	the person terminates state service. If the person had dependent coverage at the time of 
185.21 	terminating state service, employer contributions for dependent coverage also must continue 
185.22 	under this section. The employer contributions must be in the amount of the employer 
185.23 	contribution for active state employees at the time each payment is made. The employer 
185.24 	contributions must continue until the person reaches age 65, provided the person makes the 
185.25 	required employee contributions, in the amount required of an active state employee, at the 
185.26 	time and in the manner specified by the commissioner or executive board.

185.27 	Sec. 5. Minnesota Statutes 2024, section 246C.01, is amended to read:
185.28 	246C.01 TITLE.
185.29 	This chapter may be cited as the "Department of Direct Care and Treatment Act."

186.1 	Sec. 6. Minnesota Statutes 2024, section 246C.015, subdivision 3, is amended to read:
186.2 		Subd. 3.Commissioner. "Commissioner" means the commissioner of human services
186.3 	direct care and treatment.

186.4 	Sec. 7. Minnesota Statutes 2024, section 246C.015, is amended by adding a subdivision 
186.5 	to read:
186.6 		Subd. 5b.Department. "Department" means the Department of Direct Care and 
186.7 	Treatment.

186.8 	Sec. 8. Minnesota Statutes 2024, section 246C.02, subdivision 1, is amended to read:
186.9 		Subdivision 1.Establishment. The Department of Direct Care and Treatment is created 
186.10 	as an agency headed by an executive board established.

186.11 	Sec. 9. Minnesota Statutes 2024, section 246C.04, subdivision 2, is amended to read:
186.12 		Subd. 2.Transfer of custody of civilly committed persons. The commissioner of 
186.13 	human services shall continue to exercise all authority and responsibility for and retain 
186.14 	custody of persons subject to civil commitment under chapter 253B or 253D until July 1, 
186.15 	2025. Effective July 1, 2025, custody of persons subject to civil commitment under chapter 
186.16 	253B or 253D and in the custody of the commissioner of human services as of that date is 
186.17 	hereby transferred to the executive board commissioner without any further act or proceeding. 
186.18 	Authority and responsibility for the commitment of such persons is transferred to the 
186.19 	executive board commissioner July 1, 2025.

186.20 	Sec. 10. Minnesota Statutes 2024, section 246C.04, subdivision 3, is amended to read:
186.21 		Subd. 3.Control of direct care and treatment. The commissioner of human services 
186.22 	shall continue to exercise all authorities and responsibilities under this chapter and chapters 
186.23 	13, 245, 246, 246B, 252, 253, 253B, 253C, 253D, 254A, 254B, and 256, with reference to 
186.24 	any state-operated service, program, or facility subject to transfer under Laws 2024, chapter 
186.25 	79; Laws 2024, chapter 125, article 5; and Laws 2024, chapter 127, article 50, until July 1, 
186.26 	2025. Effective July 1, 2025, the powers and duties vested in or imposed upon the 
186.27 	commissioner of human services with reference to any state-operated service, program, or 
186.28 	facility are hereby transferred to, vested in, and imposed upon the executive board
186.29 	commissioner according to this chapter and applicable state law. Effective July 1, 2025, the 
186.30 	executive board commissioner has the exclusive power of administration and management 
186.31 	of all state hospitals for persons with a developmental disability, mental illness, or substance 
187.1 	use disorder. Effective July 1, 2025, the executive board commissioner has the power and 
187.2 	authority to determine all matters relating to the development of all of the foregoing 
187.3 	institutions and of such other institutions vested in the executive board commissioner. 
187.4 	Effective July 1, 2025, the powers, functions, and authority vested in the commissioner of 
187.5 	human services relative to such state institutions are transferred to the executive board
187.6 	commissioner according to this chapter and applicable state law.

187.7 	Sec. 11. Minnesota Statutes 2024, section 246C.07, subdivision 1, is amended to read:
187.8 		Subdivision 1.Generally. (a) The executive board commissioner must operate the 
187.9 	agency department according to this chapter and applicable state and federal law. The overall 
187.10 	management and control of the agency department is vested in the executive board
187.11 	commissioner in accordance with this chapter.
187.12 	(b) The executive board commissioner must appoint a chief executive officer according 
187.13 	to section 246C.08. The chief executive officer is responsible for the administrative and 
187.14 	operational duties of the Department of Direct Care and Treatment in accordance with this 
187.15 	chapter and serves as the deputy commissioner for the purposes of section 15.06 and as 
187.16 	deputy agency head for the purposes of section 43A.08.
187.17 	(c) The executive board commissioner may delegate duties imposed by this chapter and 
187.18 	under applicable state and federal law as deemed appropriate by the board commissioner
187.19 	and in accordance with this chapter. Any delegation of a specified statutory duty or power 
187.20 	to an employee of the Department of Direct Care and Treatment other than the chief executive 
187.21 	officer must be made by written order and filed with the secretary of state. Only the chief 
187.22 	executive officer shall have the powers and duties of the executive board commissioner as 
187.23 	specified in section 246C.08.

187.24 	Sec. 12. Minnesota Statutes 2024, section 246C.07, subdivision 2, is amended to read:
187.25 		Subd. 2.Principles. The executive board commissioner, in undertaking its the 
187.26 	commissioner's duties and responsibilities and within the Department of Direct Care and 
187.27 	Treatment resources, shall act according to the following principles:
187.28 	(1) prevent the waste or unnecessary spending of public money;
187.29 	(2) use innovative fiscal and human resource practices to manage the state's resources 
187.30 	and operate the agency department as efficiently as possible;
187.31 	(3) coordinate Department of Direct Care and Treatment activities wherever appropriate 
187.32 	with the activities of other governmental agencies;
188.1 	(4) use technology where appropriate to increase agency department productivity, improve 
188.2 	customer service, increase public access to information about government, and increase 
188.3 	public participation in the business of government; and
188.4 	(5) utilize constructive and cooperative labor management practices to the extent 
188.5 	otherwise required by chapter 43A or 179A.

188.6 	Sec. 13. Minnesota Statutes 2024, section 246C.07, subdivision 8, is amended to read:
188.7 		Subd. 8.Biennial estimates; suggestions for legislation. The executive board
188.8 	commissioner shall prepare, for the use of the legislature, biennial estimates of appropriations 
188.9 	necessary or expedient to be made for the support of the institutions and for extraordinary 
188.10 	and special expenditures for buildings and other improvements. The executive board
188.11 	commissioner shall make suggestions relative to legislation for the benefit of the institutions. 
188.12 	The executive board commissioner shall report the estimates and suggestions to the legislature 
188.13 	on or before November 15 in each even-numbered year. A designee of the executive board
188.14 	The commissioner on request shall appear before any legislative committee and furnish any 
188.15 	required information in regard to the condition of any such institution.

188.16 	Sec. 14. [246C.075] ADVISORY COUNCIL ON DIRECT CARE AND TREATMENT.
188.17 		Subdivision 1.Establishment. An Advisory Council on Direct Care and Treatment is 
188.18 	established.
188.19 		Subd. 2.Membership. (a) The Advisory Council on Direct Care and Treatment must 
188.20 	consist of no more than 15 members appointed as provided in section 15.0597. The advisory 
188.21 	council must include:
188.22 	(1) one member who is a licensed physician with experience serving behavioral health 
188.23 	patients or a licensed psychiatrist, appointed by the commissioner;
188.24 	(2) two members with executive management experience at a hospital or health care 
188.25 	system, or experience serving on the board of a hospital or health care system, appointed 
188.26 	by the commissioner;
188.27 	(3) three members, each appointed by the commissioner, who have experience working:
188.28 	(i) in the delivery of behavioral health services;
188.29 	(ii) in care coordination;
188.30 	(iii) in traditional healing practices;
188.31 	(iv) as a licensed health care professional;
189.1 	(v) within health care administration; or
189.2 	(vi) with residential services;
189.3 	(4) one member appointed by the Association of Counties;
189.4 	(5) one member who has an active role as a union representative representing staff at 
189.5 	the Department of Direct Care and Treatment appointed by joint representatives of the 
189.6 	following unions: American Federation of State, County, and Municipal Employees 
189.7 	(AFSCME); Minnesota Association of Professional Employees (MAPE); Minnesota Nurses 
189.8 	Association (MNA); Middle Management Association (MMA); and State Residential 
189.9 	Schools Education Association (SRSEA);
189.10 	(6) one member appointed by the National Alliance on Mental Illness Minnesota;
189.11 	(7) two members representing people with lived experience being served by state-operated 
189.12 	treatment programs or their families, appointed by the commissioner;
189.13 	(8) one member appointed by the Minnesota Disability Law Center; and
189.14 	(9) up to three additional members appointed by the commissioner reflecting community 
189.15 	interests or perspectives the commissioner deems valuable.
189.16 	(b) Membership on the advisory council must include representation from outside the 
189.17 	seven-county metropolitan area, as defined in section 473.121, subdivision 2.
189.18 	(c) Appointing authorities under paragraph (a) must make initial appointments by 
189.19 	September 1, 2025.
189.20 		Subd. 3.Terms; compensation; removal; vacancies; expiration. (a) The membership 
189.21 	terms, compensation, removal of members, and filling of vacancies of members are as 
189.22 	provided in section 15.059, except that council members shall not receive a per diem.
189.23 	(b) The advisory council does not expire.
189.24 		Subd. 4.Meetings. (a) The members of the advisory council shall elect a chair from 
189.25 	among their membership at the first meeting and annually thereafter or upon a vacancy in 
189.26 	the chair. The advisory council shall meet at the call of the commissioner, the call of the 
189.27 	chair, or upon the call of a majority of members.
189.28 	(b) The first meeting of the advisory council must be held no later than September 15, 
189.29 	2025.
189.30 		Subd. 5.Duties. The advisory council shall advise the commissioner regarding the 
189.31 	operations of the Department of Direct Care and Treatment, the clinical standards of care 
190.1 	for patients and clients of state-operated programs, and provide recommendations to the 
190.2 	commissioner for improving the department's role in the state's mental health care system.

190.3 	Sec. 15. Minnesota Statutes 2024, section 246C.08, is amended to read:
190.4 	246C.08 CHIEF EXECUTIVE OFFICER; SERVICE; DUTIES.
190.5 		Subdivision 1.Service. (a) The direct care and treatment chief executive officer is 
190.6 	appointed by the executive board, in consultation with the governor, and serves at the 
190.7 	pleasure of the executive board, with the advice and consent of the senate commissioner, 
190.8 	and is the deputy commissioner for the purposes of section 15.06.
190.9 	(b) The chief executive officer shall serve in the unclassified service in accordance with 
190.10 	section 43A.08. The Compensation Council under section 15A.082 shall establish the salary 
190.11 	of the chief executive officer.
190.12 		Subd. 2.Powers and duties. (a) The chief executive officer's primary duty is to assist 
190.13 	the executive board commissioner. The chief executive officer is responsible for the 
190.14 	administrative and operational management of the agency.
190.15 	(b) The chief executive officer shall have all the powers of the executive board unless 
190.16 	the executive board directs otherwise. The chief executive officer shall have the authority 
190.17 	to speak for the executive board and Direct Care and Treatment within and outside the 
190.18 	agency.
190.19 	(c) (b) In the event that a vacancy occurs for any reason within the chief executive officer 
190.20 	position, the executive medical director appointed under section 246C.09 shall immediately 
190.21 	become the temporary chief executive officer until the executive board commissioner
190.22 	appoints a new chief executive officer. During this period, the executive medical director 
190.23 	shall have all the powers and authority delegated to the chief executive officer by the board
190.24 	commissioner and specified in this chapter.
190.25 		Subd. 3.Minimum qualifications. The chief executive officer must be selected by the 
190.26 	commissioner without regard to political affiliation and must have wide and successful 
190.27 	administrative experience in and understanding of health care, preferably behavioral health 
190.28 	care, including clinical and operational needs of a large health care service and delivery 
190.29 	organization.

190.30 	EFFECTIVE DATE. This section is effective July 1, 2025, except the amendment to 
190.31 	subdivision 1, paragraph (b), is effective retroactively from July 1, 2024.

191.1 	Sec. 16. Minnesota Statutes 2024, section 246C.09, subdivision 3, is amended to read:
191.2 		Subd. 3.Duties. The executive medical director shall:
191.3 	(1) oversee the clinical provision of inpatient mental health services provided in the 
191.4 	state's regional treatment centers;
191.5 	(2) recruit and retain psychiatrists to serve on the Direct Care and Treatment department
191.6 	medical staff established in subdivision 4;
191.7 	(3) consult with the executive board, the chief executive officer, commissioner, the chief 
191.8 	executive officer, and community mental health center directors to develop standards for 
191.9 	treatment and care of patients in state-operated service programs;
191.10 	(4) develop and oversee a continuing education program for members of the medical 
191.11 	staff; and
191.12 	(5) participate and cooperate in the development and maintenance of a quality assurance 
191.13 	program for state-operated services that assures that residents receive continuous quality 
191.14 	inpatient, outpatient, and postdischarge care.

191.15 	Sec. 17. Minnesota Statutes 2024, section 246C.091, subdivision 2, is amended to read:
191.16 		Subd. 2.Facilities management account. A facilities management account is created 
191.17 	in the special revenue fund of the state treasury. Beginning July 1, 2025, money in the 
191.18 	account is appropriated to the commissioner of direct care and treatment executive board
191.19 	and may be used to maintain buildings, acquire facilities, renovate existing buildings, or 
191.20 	acquire land for the design and construction of buildings for Direct Care and Treatment
191.21 	department use. Money received for maintaining state property under control of the executive 
191.22 	board commissioner may be deposited into this account.

191.23 	Sec. 18. Minnesota Statutes 2024, section 246C.091, subdivision 3, is amended to read:
191.24 		Subd. 3.Direct care and treatment systems account. (a) The direct care and treatment 
191.25 	systems account is created in the special revenue fund of the state treasury. Beginning July 
191.26 	1, 2025, money in the account is appropriated to the commissioner of direct care and 
191.27 	treatment executive board and may be used for security systems and information technology 
191.28 	projects, services, and support under the control of the executive board commissioner.
191.29 	(b) The commissioner of human services shall transfer all money allocated to the direct 
191.30 	care and treatment systems projects under section 256.014 to the direct care and treatment 
191.31 	systems account under this section by June 30, 2026.

192.1 	Sec. 19. Minnesota Statutes 2024, section 246C.091, subdivision 4, is amended to read:
192.2 		Subd. 4.Cemetery maintenance account. The cemetery maintenance account is created 
192.3 	in the special revenue fund of the state treasury. Money in the account is appropriated to 
192.4 	the executive board commissioner of direct care and treatment for the maintenance of 
192.5 	cemeteries under control of the executive board commissioner. Money allocated to Direct 
192.6 	Care and Treatment department cemeteries may be transferred to this account.

192.7 	Sec. 20. Laws 2024, chapter 127, article 50, section 41, subdivision 2, is amended to read:
192.8 		Subd. 2.Chief executive officer. (a) The commissioner of direct care and treatment 
192.9 	executive board must appoint as the initial chief executive officer for direct care and treatment 
192.10 	under Minnesota Statutes, section 246C.07 246C.08, the chief executive officer of the direct 
192.11 	care and treatment division of the Department of Human Services holding that position at 
192.12 	the time the initial appointment is made by the board commissioner. The initial appointment 
192.13 	of the chief executive officer must be made by the executive board commissioner by July 
192.14 	1, 2025. The initial appointment of the chief executive officer is subject to confirmation by 
192.15 	the senate.
192.16 	(b) In its report issued April 1, 2025, the Compensation Council under Minnesota Statutes, 
192.17 	section 15A.082, must establish the salary of the chief executive officer at an amount equal 
192.18 	to or greater than the amount paid to the chief executive officer of the direct care and 
192.19 	treatment division of the Department of Human Services as of the date of initial appointment. 
192.20 	The salary of the chief executive officer shall become effective July 1, 2025, pursuant to 
192.21 	Minnesota Statutes, section 15A.082, subdivision 3. Notwithstanding Minnesota Statutes, 
192.22 	sections 15A.082 and 246C.08, subdivision 1, if the initial appointment of the chief executive 
192.23 	officer occurs prior to the effective date of the salary specified by the Compensation Council 
192.24 	in its April 1, 2025, report, theThe initial salary of the chief executive officer must equal 
192.25 	the amount paid to the chief executive officer of the direct care and treatment division of 
192.26 	the Department of Human Services as of the date of initial appointment.

192.27 	EFFECTIVE DATE. This section is effective July 1, 2025, except the amendment to 
192.28 	paragraph (b) is effective retroactively from July 1, 2024.

192.29 	Sec. 21. INITIAL APPOINTMENT OF COMMISSIONER OF DIRECT CARE 
192.30 	AND TREATMENT.
 192.31 	The initial appointment of a commissioner of direct care and treatment or initial 
192.32 	designation of a temporary commissioner of direct care and treatment by the governor under 
192.33 	Minnesota Statutes, section 15.06, must be made by July 1, 2025. Notwithstanding Minnesota 
193.1 	Statutes, section 15.066, subdivision 2, clause (4), the initial appointment of a commissioner 
193.2 	of direct care and treatment or initial designation of a temporary commissioner of direct 
193.3 	care and treatment is effective no earlier than July 1, 2025.

193.4 	Sec. 22. SALARY FOR THE COMMISSIONER OF THE DEPARTMENT OF 
193.5 	DIRECT CARE AND TREATMENT.
 193.6 	If the initial appointment of the commissioner of the Department of Direct Care and 
193.7 	Treatment occurs prior to the commissioner's salary being determined by the Compensation 
193.8 	Council under Minnesota Statutes, section 15A.082, the commissioner's salary must equal 
193.9 	the salary of the commissioner of human services, as determined under Minnesota Statutes, 
193.10 	section 15A.0815, subdivision 2.

193.11 	EFFECTIVE DATE. This section is effective the day following final enactment and 
193.12 	expires upon adoption by the Compensation Council of a salary for the position of 
193.13 	commissioner of the Department of Direct Care and Treatment.

193.14 	Sec. 23. DISSOLUTION OF THE DIRECT CARE AND TREATMENT EXECUTIVE 
193.15 	BOARD.
 193.16 		Subdivision 1.Dissolution of executive board. Upon the effective date of this section, 
193.17 	the direct care and treatment executive board under Minnesota Statutes, section 246C.06, 
193.18 	is dissolved.
193.19 		Subd. 2.Transfer of duties. (a) Any authorities and responsibilities that were vested 
193.20 	in the executive board prior to July 1, 2025, are transferred to the commissioner of human 
193.21 	services. Minnesota Statutes, section 15.039, applies to the transfer of responsibilities from 
193.22 	the direct care and treatment executive board to the commissioner of human services between 
193.23 	the effective date of this section and July 1, 2025.
193.24 	(b) Minnesota Statutes, section 246C.04, governs the transfer of authority and 
193.25 	responsibility on July 1, 2025, from the commissioner of human services to the commissioner 
193.26 	of direct care and treatment.

193.27 	Sec. 24. REVISOR INSTRUCTION.
 193.28 	(a) The revisor of statutes shall change the term "Direct Care and Treatment" to "the 
193.29 	Department of Direct Care and Treatment" and "agency" to "department" wherever the 
193.30 	terms appear in respect to the governmental entity with programmatic direction and fiscal 
193.31 	control over state-operated services, programs, or facilities under Minnesota Statutes, chapter 
194.1 	246C. The revisor may make technical and other necessary changes to sentence structure 
194.2 	to preserve the meaning of the text.
194.3 	(b) The revisor of statutes shall change the term "executive board" to "commissioner" 
194.4 	and "Direct Care and Treatment executive board" to "commissioner of direct care and 
194.5 	treatment" wherever the terms appear in respect to the head of the governmental entity with 
194.6 	programmatic direction and fiscal control over state-operated services, programs, or facilities 
194.7 	under Minnesota Statutes, chapter 246C. The revisor may make technical and other necessary 
194.8 	changes to sentence structure to preserve the meaning of the text.

194.9 	Sec. 25. REVISOR INSTRUCTION.
 194.10 	The revisor of statutes, in consultation with the House Research Department; the Office 
194.11 	of Senate Counsel, Research and Fiscal Analysis; the Department of Human Services; and 
194.12 	the Department of Direct Care and Treatment, shall make necessary cross-reference changes 
194.13 	to conform with this act. The revisor may make technical and other necessary changes to 
194.14 	sentence structure to preserve the meaning of the text. The revisor may alter the coding in 
194.15 	this act to incorporate statutory changes made by other law in the 2025 regular legislative 
194.16 	session.

194.17 	Sec. 26. REVISOR INSTRUCTION.
 194.18 	The revisor of statutes shall renumber Minnesota Statutes, section 246C.06, subdivision 
194.19 	11, as Minnesota Statutes, section 246C.07, subdivision 4a, and correct all cross-references.

194.20 	Sec. 27. REPEALER.
 194.21 	(a) Minnesota Statutes 2024, sections 246C.015, subdivisions 5a and 6; 246C.06, 
194.22 	subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10; and 246C.07, subdivisions 4 and 5, are repealed.
194.23 	(b) Laws 2024, chapter 79, article 1, section 20, is repealed.
194.24 	(c) Laws 2024, chapter 125, article 5, sections 40; and 41; and Laws 2024, chapter 127, 
194.25 	article 50, sections 40; and 41, subdivisions 1, and 3, are repealed retroactive to July 1, 
194.26 	2024.

194.27 	Sec. 28. EFFECTIVE DATE.
 194.28 	This article is effective the day following final enactment.

195.1 	ARTICLE 8
195.2 	DEPARTMENT OF DIRECT CARE AND TREATMENT CONFORMING CHANGES

195.3 	Section 1. Minnesota Statutes 2024, section 15A.0815, subdivision 2, is amended to read:
195.4 		Subd. 2.Agency head salaries. The salary for a position listed in this subdivision shall 
195.5 	be determined by the Compensation Council under section 15A.082. The commissioner of 
195.6 	management and budget must publish the salaries on the department's website. This 
195.7 	subdivision applies to the following positions:
195.8 	Commissioner of administration;
195.9 	Commissioner of agriculture;
195.10 	Commissioner of education;
195.11 	Commissioner of children, youth, and families;
195.12 	Commissioner of commerce;
195.13 	Commissioner of corrections;
195.14 	Commissioner of health;
195.15 	Commissioner, Minnesota Office of Higher Education;
195.16 	Commissioner, Minnesota IT Services;
195.17 	Commissioner, Housing Finance Agency;
195.18 	Commissioner of human rights;
195.19 	Commissioner of human services;
195.20 	Commissioner of labor and industry;
195.21 	Commissioner of management and budget;
195.22 	Commissioner of natural resources;
195.23 	Commissioner, Pollution Control Agency;
195.24 	Commissioner of public safety;
195.25 	Commissioner of revenue;
195.26 	Commissioner of employment and economic development;
195.27 	Commissioner of transportation;
195.28 	Commissioner of veterans affairs;
196.1 	Commissioner of direct care and treatment;
196.2 	Executive director of the Gambling Control Board;
196.3 	Executive director of the Minnesota State Lottery;
196.4 	Executive director of the Office of Cannabis Management;
196.5 	Commissioner of Iron Range resources and rehabilitation;
196.6 	Commissioner, Bureau of Mediation Services;
196.7 	Ombudsman for mental health and developmental disabilities;
196.8 	Ombudsperson for corrections;
196.9 	Chair, Metropolitan Council;
196.10 	Chair, Metropolitan Airports Commission;
196.11 	School trust lands director;
196.12 	Executive director of pari-mutuel racing;
196.13 	Commissioner, Public Utilities Commission;
196.14 	Chief Executive Officer, Direct Care and Treatment; and
196.15 	Director of the Office of Emergency Medical Services.

196.16 	EFFECTIVE DATE. This section is effective July 1, 2025, except the amendment 
196.17 	striking "Chief Executive Officer, Direct Care and Treatment;" is effective retroactively 
196.18 	from July 1, 2024.

196.19 	Sec. 2. Minnesota Statutes 2024, section 15A.082, subdivision 1, is amended to read:
196.20 		Subdivision 1.Creation. A Compensation Council is created each odd-numbered year 
196.21 	to establish the compensation of constitutional officers and the heads of state and metropolitan 
196.22 	agencies identified in section 15A.0815, and to assist the legislature in establishing the 
196.23 	compensation of justices of the supreme court and judges of the court of appeals and district 
196.24 	court, and to determine the daily compensation for voting members of the Direct Care and 
196.25 	Treatment executive board.

196.26 	Sec. 3. Minnesota Statutes 2024, section 15A.082, subdivision 3, is amended to read:
196.27 		Subd. 3.Submission of recommendations and determination. (a) By April 1 in each 
196.28 	odd-numbered year, the Compensation Council shall submit to the speaker of the house and 
196.29 	the president of the senate salary recommendations for justices of the supreme court, and 
197.1 	judges of the court of appeals and district court. The recommended salaries take effect on 
197.2 	July 1 of that year and July 1 of the subsequent even-numbered year and at whatever interval 
197.3 	the council recommends thereafter, unless the legislature by law provides otherwise. The 
197.4 	salary recommendations take effect if an appropriation of money to pay the recommended 
197.5 	salaries is enacted after the recommendations are submitted and before their effective date. 
197.6 	Recommendations may be expressly modified or rejected.
197.7 	(b) By April 1 in each odd-numbered year, the Compensation Council must prescribe 
197.8 	salaries for constitutional officers, and for the agency and metropolitan agency heads 
197.9 	identified in section 15A.0815. The prescribed salary for each office must take effect July 
197.10 	1 of that year and July 1 of the subsequent even-numbered year and at whatever interval 
197.11 	the council determines thereafter, unless the legislature by law provides otherwise. An 
197.12 	appropriation by the legislature to fund the relevant office, branch, or agency of an amount 
197.13 	sufficient to pay the salaries prescribed by the council constitutes a prescription by law as 
197.14 	provided in the Minnesota Constitution, article V, sections 4 and 5.
197.15 	(c) By April 1 in each odd-numbered year, the Compensation Council must prescribe 
197.16 	daily compensation for voting members of the Direct Care and Treatment executive board. 
197.17 	The recommended daily compensation takes effect on July 1 of that year and July 1 of the 
197.18 	subsequent even-numbered year and at whatever interval the council recommends thereafter, 
197.19 	unless the legislature by law provides otherwise.

197.20 	Sec. 4. Minnesota Statutes 2024, section 15A.082, subdivision 7, is amended to read:
197.21 		Subd. 7.No ex parte communications. Members may not have any communication 
197.22 	with a constitutional officer, a head of a state agency, or a member of the judiciary, or a 
197.23 	member of the Direct Care and Treatment executive board during the period after the first 
197.24 	meeting is convened under this section and the date the prescribed and recommended salaries 
197.25 	and daily compensation are submitted under subdivision 3.

197.26 	Sec. 5. Minnesota Statutes 2024, section 43A.08, subdivision 1, is amended to read:
197.27 		Subdivision 1.Unclassified positions.  Unclassified positions are held by employees 
197.28 	who are:
197.29 	(1) chosen by election or appointed to fill an elective office;
197.30 	(2) heads of agencies required by law to be appointed by the governor or other elective 
197.31 	officers, and the executive or administrative heads of departments, bureaus, divisions, and 
197.32 	institutions specifically established by law in the unclassified service;
198.1 	(3) deputy and assistant agency heads and one confidential secretary in the agencies 
198.2 	listed in subdivision 1a;
198.3 	(4) the confidential secretary to each of the elective officers of this state and, for the 
198.4 	secretary of state and state auditor, an additional deputy, clerk, or employee;
198.5 	(5) intermittent help employed by the commissioner of public safety to assist in the 
198.6 	issuance of vehicle licenses;
198.7 	(6) employees in the offices of the governor and of the lieutenant governor and one 
198.8 	confidential employee for the governor in the Office of the Adjutant General;
198.9 	(7) employees of the Washington, D.C., office of the state of Minnesota;
198.10 	(8) employees of the legislature and of legislative committees or commissions; provided 
198.11 	that employees of the Legislative Audit Commission, except for the legislative auditor, the 
198.12 	deputy legislative auditors, and their confidential secretaries, shall be employees in the 
198.13 	classified service;
198.14 	(9) presidents, vice-presidents, deans, other managers and professionals in academic 
198.15 	and academic support programs, administrative or service faculty, teachers, research 
198.16 	assistants, and student employees eligible under terms of the federal Economic Opportunity 
198.17 	Act work study program in the Perpich Center for Arts Education and the Minnesota State 
198.18 	Colleges and Universities, but not the custodial, clerical, or maintenance employees, or any 
198.19 	professional or managerial employee performing duties in connection with the business 
198.20 	administration of these institutions;
198.21 	(10) officers and enlisted persons in the National Guard;
198.22 	(11) attorneys, legal assistants, and three confidential employees appointed by the attorney 
198.23 	general or employed with the attorney general's authorization;
198.24 	(12) judges and all employees of the judicial branch, referees, receivers, jurors, and 
198.25 	notaries public, except referees and adjusters employed by the Department of Labor and 
198.26 	Industry;
198.27 	(13) members of the State Patrol; provided that selection and appointment of State Patrol 
198.28 	troopers must be made in accordance with applicable laws governing the classified service;
198.29 	(14) examination monitors and intermittent training instructors employed by the 
198.30 	Departments of Management and Budget and Commerce and by professional examining 
198.31 	boards and intermittent staff employed by the technical colleges for the administration of 
198.32 	practical skills tests and for the staging of instructional demonstrations;
199.1 	(15) student workers;
199.2 	(16) executive directors or executive secretaries appointed by and reporting to any 
199.3 	policy-making board or commission established by statute;
199.4 	(17) employees unclassified pursuant to other statutory authority;
199.5 	(18) intermittent help employed by the commissioner of agriculture to perform duties 
199.6 	relating to pesticides, fertilizer, and seed regulation;
199.7 	(19) the administrators and the deputy administrators at the State Academies for the 
199.8 	Deaf and the Blind; and
199.9 	(20) the chief executive officer of Direct Care and Treatment who serves as the deputy 
199.10 	agency head.

199.11 	Sec. 6. Minnesota Statutes 2024, section 43A.08, subdivision 1a, is amended to read:
199.12 		Subd. 1a.Additional unclassified positions. Appointing authorities for the following 
199.13 	agencies may designate additional unclassified positions according to this subdivision: the 
199.14 	Departments of Administration; Agriculture; Children, Youth, and Families; Commerce; 
199.15 	Corrections; Direct Care and Treatment; Education; Employment and Economic 
199.16 	Development; Explore Minnesota Tourism; Management and Budget; Health; Human 
199.17 	Rights; Human Services; Labor and Industry; Natural Resources; Public Safety; Revenue; 
199.18 	Transportation; and Veterans Affairs; the Housing Finance and Pollution Control Agencies; 
199.19 	the State Lottery; the State Board of Investment; the Office of Administrative Hearings; the 
199.20 	Department of Information Technology Services; the Offices of the Attorney General, 
199.21 	Secretary of State, and State Auditor; the Minnesota State Colleges and Universities; the 
199.22 	Minnesota Office of Higher Education; the Perpich Center for Arts Education; Direct Care 
199.23 	and Treatment; the Minnesota Zoological Board; and the Office of Emergency Medical 
199.24 	Services.
199.25 	A position designated by an appointing authority according to this subdivision must 
199.26 	meet the following standards and criteria:
199.27 	(1) the designation of the position would not be contrary to other law relating specifically 
199.28 	to that agency;
199.29 	(2) the person occupying the position would report directly to the agency head or deputy 
199.30 	agency head and would be designated as part of the agency head's management team;
199.31 	(3) the duties of the position would involve significant discretion and substantial 
199.32 	involvement in the development, interpretation, and implementation of agency policy;
200.1 	(4) the duties of the position would not require primarily personnel, accounting, or other 
200.2 	technical expertise where continuity in the position would be important;
200.3 	(5) there would be a need for the person occupying the position to be accountable to, 
200.4 	loyal to, and compatible with, the governor and the agency head, the employing statutory 
200.5 	board or commission, or the employing constitutional officer;
200.6 	(6) the position would be at the level of division or bureau director or assistant to the 
200.7 	agency head; and
200.8 	(7) the commissioner has approved the designation as being consistent with the standards 
200.9 	and criteria in this subdivision.

200.10 	Sec. 7. Minnesota Statutes 2024, section 245.021, is amended to read:
200.11 	245.021 DEFINITIONS DEFINITION.
200.12 	(a) For the purposes of this chapter, the definitions definition in this section have has
200.13 	the meanings meaning given them.
200.14 	(b) "Commissioner" means the commissioner of human services.
200.15 	(c) "Executive board" has the meaning given in section 246C.015.

200.16 	Sec. 8. Minnesota Statutes 2024, section 245.073, is amended to read:
200.17 	245.073 TECHNICAL TRAINING; COMMUNITY-BASED PROGRAMS.
200.18 	(a) In conjunction with the discharge of persons from regional treatment centers and 
200.19 	their admission to state-operated and privately operated community-based programs, the 
200.20 	commissioner may provide technical training assistance to the community-based programs. 
200.21 	The commissioner may apply for and accept money from any source including reimbursement 
200.22 	charges from the community-based programs for reasonable costs of training. Money 
200.23 	received must be deposited in the general fund and is appropriated annually to the 
200.24 	commissioner of human services for training under this section.
200.25 	(b) The commissioner must coordinate with the executive board commissioner of direct 
200.26 	care and treatment or the commissioner's designee to provide technical training assistance 
200.27 	to community-based programs under this section and section 246C.11, subdivision 5.

201.1 	Sec. 9. Minnesota Statutes 2024, section 246.13, subdivision 1, is amended to read:
201.2 		Subdivision 1.Executive board Record responsibilities. (a) The chief executive officer 
201.3 	or a designee shall have, accessible only by consent of the executive board commissioner
201.4 	or on the order of a judge or court of record, a record showing:
201.5 	(1) the residence, sex, age, nativity, occupation, civil condition, and date of entrance or 
201.6 	commitment of every person, in the state-operated services facilities as defined under section 
201.7 	246C.02 under exclusive control of the executive board commissioner;
201.8 	(2) the date of discharge of any such person and whether such discharge was final;
201.9 	(3) the condition of the person when the person left the state-operated services facility;
201.10 	(4) the vulnerable adult abuse prevention associated with the person; and
201.11 	(5) the date and cause of any death of such person.
201.12 	(b) The record in paragraph (a) must state every transfer of a person from one 
201.13 	state-operated services facility to another, naming each state-operated services facility. The 
201.14 	head of each facility or a designee must provide this transfer information to the executive 
201.15 	board commissioner, along with other obtainable facts as the executive board commissioner
201.16 	requests.
201.17 	(c) The head of the state-operated services facility or designee shall inform the executive 
201.18 	board commissioner of any discharge, transfer, or death of a person in that facility within 
201.19 	ten days of the date of discharge, transfer, or death in a manner determined by the executive 
201.20 	board commissioner.
201.21 	(d) The executive board commissioner shall maintain an adequate system of records and 
201.22 	statistics for all basic record forms, including patient personal records and medical record 
201.23 	forms. The use and maintenance of such records must be consistent throughout all 
201.24 	state-operated services facilities.

201.25 	Sec. 10. Minnesota Statutes 2024, section 246B.01, is amended by adding a subdivision 
201.26 	to read:
201.27 		Subd. 2e.Commissioner. "Commissioner" means the commissioner of direct care and 
201.28 	treatment.

201.29 	Sec. 11. Minnesota Statutes 2024, section 252.021, is amended by adding a subdivision 
201.30 	to read:
201.31 		Subd. 4.Commissioner. "Commissioner" means the commissioner of human services.

202.1 	Sec. 12. Minnesota Statutes 2024, section 252.50, subdivision 5, is amended to read:
202.2 		Subd. 5.Location of programs. (a) In determining the location of state-operated, 
202.3 	community-based programs, the needs of the individual client shall be paramount. The 
202.4 	executive board commissioner of direct care and treatment shall also take into account:
202.5 	(1) prioritization of beds in state-operated, community-based programs for individuals 
202.6 	with complex behavioral needs that cannot be met by private community-based providers;
202.7 	(2) choices made by individuals who chose to move to a more integrated setting, and 
202.8 	shall coordinate with the lead agency to ensure that appropriate person-centered transition 
202.9 	plans are created;
202.10 	(3) the personal preferences of the persons being served and their families as determined 
202.11 	by Minnesota Rules, parts 9525.0004 to 9525.0036;
202.12 	(4) the location of the support services established by the individual service plans of the 
202.13 	persons being served;
202.14 	(5) the appropriate grouping of the persons served;
202.15 	(6) the availability of qualified staff;
202.16 	(7) the need for state-operated, community-based programs in the geographical region 
202.17 	of the state; and
202.18 	(8) a reasonable commuting distance from a regional treatment center or the residences 
202.19 	of the program staff.
202.20 	(b) The executive boardcommissioner of direct care and treatment must locate 
202.21 	state-operated, community-based programs in coordination with the commissioner of human 
202.22 	services according to section 252.28.

202.23 	Sec. 13. Minnesota Statutes 2024, section 253.195, is amended by adding a subdivision 
202.24 	to read:
202.25 		Subd. 2a.Commissioner. "Commissioner" means the commissioner of direct care and 
202.26 	treatment.

202.27 	Sec. 14. Minnesota Statutes 2024, section 253B.02, is amended by adding a subdivision 
202.28 	to read:
202.29 		Subd. 2a.Commissioner. "Commissioner" means the commissioner of direct care and 
202.30 	treatment.

203.1 	Sec. 15. Minnesota Statutes 2024, section 253B.02, subdivision 3, is amended to read:
203.2 		Subd. 3.Commissioner of human services. "Commissioner of human services" means 
203.3 	the commissioner of human services or the commissioner's designee.

203.4 	Sec. 16. Minnesota Statutes 2024, section 253B.02, subdivision 4c, is amended to read:
203.5 		Subd. 4c.County of financial responsibility. (a) "County of financial responsibility" 
203.6 	has the meaning specified in chapter 256G. This definition does not require that the person 
203.7 	qualifies for or receives any other form of financial, medical, or social service assistance 
203.8 	in addition to the services under this chapter. Disputes about the county of financial 
203.9 	responsibility shall be submitted for determination to the executive board commissioner
203.10 	through the commissioner of human services in the manner prescribed in section 256G.09.
203.11 	(b) For purposes of proper venue for filing a petition pursuant to section 253B.064, 
203.12 	subdivision 1, paragraph (a); 253B.07, subdivision 1, paragraph (a); or 253D.07, where the 
203.13 	designated agency of a county has determined that it is the county of financial responsibility, 
203.14 	then that county is the county of financial responsibility until a different determination is 
203.15 	made by the appropriate county agencies or the commissioner of human services pursuant 
203.16 	to chapter 256G.

203.17 	Sec. 17. Minnesota Statutes 2024, section 253B.03, subdivision 7, is amended to read:
203.18 		Subd. 7.Treatment plan. A patient receiving services under this chapter has the right 
203.19 	to receive proper care and treatment, best adapted, according to contemporary professional 
203.20 	standards, to rendering further supervision unnecessary. The treatment facility, state-operated 
203.21 	treatment program, or community-based treatment program shall devise a written treatment 
203.22 	plan for each patient which describes in behavioral terms the case problems, the precise 
203.23 	goals, including the expected period of time for treatment, and the specific measures to be 
203.24 	employed. The development and review of treatment plans must be conducted as required 
203.25 	under the license or certification of the treatment facility, state-operated treatment program, 
203.26 	or community-based treatment program. If there are no review requirements under the 
203.27 	license or certification, the treatment plan must be reviewed quarterly. The treatment plan 
203.28 	shall be devised and reviewed with the designated agency and with the patient. The clinical 
203.29 	record shall reflect the treatment plan review. If the designated agency or the patient does 
203.30 	not participate in the planning and review, the clinical record shall include reasons for 
203.31 	nonparticipation and the plans for future involvement. The commissioner of human services
203.32 	shall monitor the treatment plan and review process for state-operated treatment programs 
203.33 	to ensure compliance with the provisions of this subdivision.

204.1 	Sec. 18. Minnesota Statutes 2024, section 253B.041, subdivision 4, is amended to read:
204.2 		Subd. 4.Evaluation. Counties may, but are not required to, provide engagement services. 
204.3 	The commissioner of human services may conduct a pilot project evaluating the impact of 
204.4 	engagement services in decreasing commitments, increasing engagement in treatment, and 
204.5 	other measures.

204.6 	Sec. 19. Minnesota Statutes 2024, section 253B.09, subdivision 3a, is amended to read:
204.7 		Subd. 3a.Reporting judicial commitments; private treatment program or 
204.8 	facility. Notwithstanding section 253B.23, subdivision 9, when a court commits a patient 
204.9 	to a non-state-operated treatment facility or program, the court shall report the commitment 
204.10 	to the commissioner through the supreme court information system for purposes of providing 
204.11 	commitment information for firearm background checks under section 246C.15. If the 
204.12 	patient is committed to a state-operated treatment program, the court shall send a copy of 
204.13 	the commitment order to the commissioner and the executive board.

204.14 	Sec. 20. Minnesota Statutes 2024, section 253B.18, subdivision 6, is amended to read:
204.15 		Subd. 6.Transfer. (a) A patient who is a person who has a mental illness and is 
204.16 	dangerous to the public shall not be transferred out of a secure treatment facility unless it 
204.17 	appears to the satisfaction of the executive board commissioner, after a hearing and favorable 
204.18 	recommendation by a majority of the special review board, that the transfer is appropriate. 
204.19 	Transfer may be to another state-operated treatment program. In those instances where a 
204.20 	commitment also exists to the Department of Corrections, transfer may be to a facility 
204.21 	designated by the commissioner of corrections.
204.22 	(b) The following factors must be considered in determining whether a transfer is 
204.23 	appropriate:
204.24 	(1) the person's clinical progress and present treatment needs;
204.25 	(2) the need for security to accomplish continuing treatment;
204.26 	(3) the need for continued institutionalization;
204.27 	(4) which facility can best meet the person's needs; and
204.28 	(5) whether transfer can be accomplished with a reasonable degree of safety for the 
204.29 	public.
205.1 	(c) If a committed person has been transferred out of a secure treatment facility pursuant 
205.2 	to this subdivision, that committed person may voluntarily return to a secure treatment 
205.3 	facility for a period of up to 60 days with the consent of the head of the treatment facility.
205.4 	(d) If the committed person is not returned to the original, nonsecure transfer facility 
205.5 	within 60 days of being readmitted to a secure treatment facility, the transfer is revoked and 
205.6 	the committed person must remain in a secure treatment facility. The committed person 
205.7 	must immediately be notified in writing of the revocation.
205.8 	(e) Within 15 days of receiving notice of the revocation, the committed person may 
205.9 	petition the special review board for a review of the revocation. The special review board 
205.10 	shall review the circumstances of the revocation and shall recommend to the commissioner 
205.11 	whether or not the revocation should be upheld. The special review board may also 
205.12 	recommend a new transfer at the time of the revocation hearing.
205.13 	(f) No action by the special review board is required if the transfer has not been revoked 
205.14 	and the committed person is returned to the original, nonsecure transfer facility with no 
205.15 	substantive change to the conditions of the transfer ordered under this subdivision.
205.16 	(g) The head of the treatment facility may revoke a transfer made under this subdivision 
205.17 	and require a committed person to return to a secure treatment facility if:
205.18 	(1) remaining in a nonsecure setting does not provide a reasonable degree of safety to 
205.19 	the committed person or others; or
205.20 	(2) the committed person has regressed clinically and the facility to which the committed 
205.21 	person was transferred does not meet the committed person's needs.
205.22 	(h) Upon the revocation of the transfer, the committed person must be immediately 
205.23 	returned to a secure treatment facility. A report documenting the reasons for revocation 
205.24 	must be issued by the head of the treatment facility within seven days after the committed 
205.25 	person is returned to the secure treatment facility. Advance notice to the committed person 
205.26 	of the revocation is not required.
205.27 	(i) The committed person must be provided a copy of the revocation report and informed, 
205.28 	orally and in writing, of the rights of a committed person under this section. The revocation 
205.29 	report must be served upon the committed person, the committed person's counsel, and the 
205.30 	designated agency. The report must outline the specific reasons for the revocation, including 
205.31 	but not limited to the specific facts upon which the revocation is based.
205.32 	(j) If a committed person's transfer is revoked, the committed person may re-petition for 
205.33 	transfer according to subdivision 5.
206.1 	(k) A committed person aggrieved by a transfer revocation decision may petition the 
206.2 	special review board within seven business days after receipt of the revocation report for a 
206.3 	review of the revocation. The matter must be scheduled within 30 days. The special review 
206.4 	board shall review the circumstances leading to the revocation and, after considering the 
206.5 	factors in paragraph (b), shall recommend to the commissioner whether or not the revocation 
206.6 	shall be upheld. The special review board may also recommend a new transfer out of a 
206.7 	secure treatment facility at the time of the revocation hearing.

206.8 	Sec. 21. Minnesota Statutes 2024, section 253B.19, subdivision 2, is amended to read:
206.9 		Subd. 2.Petition; hearing. (a) A patient committed as a person who has a mental illness 
206.10 	and is dangerous to the public under section 253B.18, or the county attorney of the county 
206.11 	from which the patient was committed or the county of financial responsibility, may petition 
206.12 	the judicial appeal panel for a rehearing and reconsideration of a decision by the 
206.13 	commissioner under section 253B.18, subdivision 5. The judicial appeal panel must not 
206.14 	consider petitions for relief other than those considered by the executive board commissioner
206.15 	from which the appeal is taken. The petition must be filed with the supreme court within 
206.16 	30 days after the decision of the executive board commissioner is signed. The hearing must 
206.17 	be held within 45 days of the filing of the petition unless an extension is granted for good 
206.18 	cause.
206.19 	(b) For an appeal under paragraph (a), the supreme court shall refer the petition to the 
206.20 	chief judge of the judicial appeal panel. The chief judge shall notify the patient, the county 
206.21 	attorney of the county of commitment, the designated agency, the executive board
206.22 	commissioner, the head of the facility or program to which the patient was committed, any 
206.23 	interested person, and other persons the chief judge designates, of the time and place of the 
206.24 	hearing on the petition. The notice shall be given at least 14 days prior to the date of the 
206.25 	hearing.
206.26 	(c) Any person may oppose the petition. The patient, the patient's counsel, the county 
206.27 	attorney of the committing county or the county of financial responsibility, and the executive 
206.28 	board commissioner shall participate as parties to the proceeding pending before the judicial 
206.29 	appeal panel and shall, except when the patient is committed solely as a person who has a 
206.30 	mental illness and is dangerous to the public, no later than 20 days before the hearing on 
206.31 	the petition, inform the judicial appeal panel and the opposing party in writing whether they 
206.32 	support or oppose the petition and provide a summary of facts in support of their position. 
206.33 	The judicial appeal panel may appoint court examiners and may adjourn the hearing from 
206.34 	time to time. It shall hear and receive all relevant testimony and evidence and make a record 
207.1 	of all proceedings. The patient, the patient's counsel, and the county attorney of the 
207.2 	committing county or the county of financial responsibility have the right to be present and 
207.3 	may present and cross-examine all witnesses and offer a factual and legal basis in support 
207.4 	of their positions. The petitioning party seeking discharge or provisional discharge bears 
207.5 	the burden of going forward with the evidence, which means presenting a prima facie case 
207.6 	with competent evidence to show that the person is entitled to the requested relief. If the 
207.7 	petitioning party has met this burden, the party opposing discharge or provisional discharge 
207.8 	bears the burden of proof by clear and convincing evidence that the discharge or provisional 
207.9 	discharge should be denied. A party seeking transfer under section 253B.18, subdivision 6, 
207.10 	must establish by a preponderance of the evidence that the transfer is appropriate.

207.11 	Sec. 22. Minnesota Statutes 2024, section 253B.20, subdivision 2, is amended to read:
207.12 		Subd. 2.Necessities. (a) The state-operated treatment program shall make necessary 
207.13 	arrangements at the expense of the state to insure that no patient is discharged or provisionally 
207.14 	discharged without suitable clothing. The head of the state-operated treatment program 
207.15 	shall, if necessary, provide the patient with a sufficient sum of money to secure transportation 
207.16 	home, or to another destination of the patient's choice, if the destination is located within a 
207.17 	reasonable distance of the state-operated treatment program.
207.18 	(b) The commissioner of human services shall establish procedures by rule to help the 
207.19 	patient receive all public assistance benefits provided by state or federal law to which the 
207.20 	patient is entitled by residence and circumstances. The rule shall be uniformly applied in 
207.21 	all counties. All counties shall provide temporary relief whenever necessary to meet the 
207.22 	intent of this subdivision.
207.23 	(c) The commissioner of human services and the executive board commissioner may 
207.24 	adopt joint rules necessary to accomplish the requirements under paragraph (b).

207.25 	Sec. 23. Minnesota Statutes 2024, section 253D.02, is amended by adding a subdivision 
207.26 	to read:
207.27 		Subd. 2a.Commissioner. "Commissioner" means the commissioner of direct care and 
207.28 	treatment.

207.29 	Sec. 24. Minnesota Statutes 2024, section 253D.02, subdivision 3, is amended to read:
207.30 		Subd. 3.Commissioner of corrections. "Commissioner of corrections" means the 
207.31 	commissioner of corrections or the commissioner's designee.

208.1 	Sec. 25. Minnesota Statutes 2024, section 254B.05, subdivision 4, is amended to read:
208.2 		Subd. 4.Regional treatment centers. Regional treatment center substance use disorder 
208.3 	treatment units are eligible vendors. The executive board commissioner of direct care and 
208.4 	treatment may expand the capacity of substance use disorder treatment units beyond the 
208.5 	capacity funded by direct legislative appropriation to serve individuals who are referred for 
208.6 	treatment by counties and whose treatment will be paid for by funding under this chapter 
208.7 	or other funding sources. Notwithstanding the provisions of sections 254B.03 to 254B.04, 
208.8 	payment for any person committed at county request to a regional treatment center under 
208.9 	chapter 253B for chemical dependency treatment and determined to be ineligible under the 
208.10 	behavioral health fund, shall become the responsibility of the county.

208.11 	Sec. 26. Minnesota Statutes 2024, section 256.045, is amended by adding a subdivision 
208.12 	to read:
208.13 		Subd. 1b.Commissioner. For purposes of this section, "commissioner" means the 
208.14 	commissioner of human services.

208.15 	Sec. 27. Minnesota Statutes 2024, section 256.045, subdivision 6, is amended to read:
208.16 		Subd. 6.Additional powers of commissioner; subpoenas. (a) The commissioner of 
208.17 	human services, the commissioner of health for matters within the commissioner's jurisdiction 
208.18 	under subdivision 3b, or the Direct Care and Treatment executive board commissioner of 
208.19 	direct care and treatment for matters within the commissioner's jurisdiction of the executive 
208.20 	board under subdivision 5a, may initiate a review of any action or decision of a county 
208.21 	agency and direct that the matter be presented to a state human services judge for a hearing 
208.22 	held under subdivision 3, 3a, 3b, or 4a. In all matters dealing with human services committed 
208.23 	by law to the discretion of the county agency, the judgment of the applicable commissioner 
208.24 	or executive board may be substituted for that of the county agency. The applicable 
208.25 	commissioner or executive board may order an independent examination when appropriate.
208.26 	(b) Any party to a hearing held pursuant to subdivision 3, 3a, 3b, or 4a may request that 
208.27 	the applicable commissioner or executive board issue a subpoena to compel the attendance 
208.28 	of witnesses and the production of records at the hearing. A local agency may request that 
208.29 	the applicable commissioner or executive board issue a subpoena to compel the release of 
208.30 	information from third parties prior to a request for a hearing under section 256.046 upon 
208.31 	a showing of relevance to such a proceeding. The issuance, service, and enforcement of 
208.32 	subpoenas under this subdivision is governed by section 357.22 and the Minnesota Rules 
208.33 	of Civil Procedure.
209.1 	(c) The commissioner of human services may issue a temporary order staying a proposed 
209.2 	demission by a residential facility licensed under chapter 245A:
209.3 	(1) while an appeal by a recipient under subdivision 3 is pending;
209.4 	(2) for the period of time necessary for the case management provider to implement the 
209.5 	commissioner's order; or
209.6 	(3) for appeals under subdivision 3, paragraph (a), clause (11), when the individual is 
209.7 	seeking a temporary stay of demission on the basis that the county has not yet finalized an 
209.8 	alternative arrangement for a residential facility, a program, or services that will meet the 
209.9 	assessed needs of the individual by the effective date of the service termination, a temporary 
209.10 	stay of demission may be issued for no more than 30 calendar days to allow for such 
209.11 	arrangements to be finalized.

209.12 	Sec. 28. Minnesota Statutes 2024, section 256.045, subdivision 7, is amended to read:
209.13 		Subd. 7.Judicial review. Except for a prepaid health plan, any party who is aggrieved 
209.14 	by an order of the commissioner of human services; the commissioner of health; or the 
209.15 	commissioner of children, youth, and families in appeals within the commissioner's 
209.16 	jurisdiction under subdivision 3b; or the Direct Care and Treatment executive board
209.17 	commissioner of direct care and treatment in appeals within the commissioner's jurisdiction 
209.18 	of the executive board under subdivision 5a may appeal the order to the district court of the 
209.19 	county responsible for furnishing assistance, or, in appeals under subdivision 3b, the county 
209.20 	where the maltreatment occurred, by serving a written copy of a notice of appeal upon the 
209.21 	applicable commissioner or executive board and any adverse party of record within 30 days 
209.22 	after the date the commissioner or executive board issued the order, the amended order, or 
209.23 	order affirming the original order, and by filing the original notice and proof of service with 
209.24 	the court administrator of the district court. Service may be made personally or by mail; 
209.25 	service by mail is complete upon mailing; no filing fee shall be required by the court 
209.26 	administrator in appeals taken pursuant to this subdivision, with the exception of appeals 
209.27 	taken under subdivision 3b. The applicable commissioner or executive board may elect to 
209.28 	become a party to the proceedings in the district court. Except for appeals under subdivision 
209.29 	3b, any party may demand that the applicable commissioner or executive board furnish all 
209.30 	parties to the proceedings with a copy of the decision, and a transcript of any testimony, 
209.31 	evidence, or other supporting papers from the hearing held before the human services judge, 
209.32 	by serving a written demand upon the applicable commissioner or executive board within 
209.33 	30 days after service of the notice of appeal. Any party aggrieved by the failure of an adverse 
209.34 	party to obey an order issued by the applicable commissioner or executive board under 
210.1 	subdivision 5 or 5a may compel performance according to the order in the manner prescribed 
210.2 	in sections 586.01 to 586.12.

210.3 	Sec. 29. Minnesota Statutes 2024, section 256G.09, subdivision 3, is amended to read:
210.4 		Subd. 3.Commissioner obligations. (a) Except as provided in paragraph (b) for matters 
210.5 	under the jurisdiction of the Direct Care and Treatment executive board commissioner of 
210.6 	direct care and treatment, the commissioner shall then promptly decide any question of 
210.7 	financial responsibility as outlined in this chapter and make an order referring the application 
210.8 	to the local agency of the proper county for further action. Further action may include 
210.9 	reimbursement by that county of assistance that another county has provided to the applicant 
210.10 	under this subdivision. The commissioner shall decide disputes within 60 days of the last 
210.11 	county evidentiary submission and shall issue an immediate opinion.
210.12 	(b) For disputes regarding financial responsibility relating to matters under the jurisdiction 
210.13 	of the direct care and treatment executive board commissioner of direct care and treatment, 
210.14 	the commissioner shall promptly issue an advisory opinion on any question of financial 
210.15 	responsibility as outlined in this chapter and recommend to the executive board commissioner 
210.16 	of direct care and treatment an order referring the application to the local agency of the 
210.17 	proper county for further action. Further action may include reimbursement by that county 
210.18 	of assistance that another county has provided to the applicant under this subdivision. The 
210.19 	commissioner shall provide an advisory opinion and recommended order to the executive 
210.20 	board commissioner of direct care and treatment within 30 days of the last county evidentiary 
210.21 	submission. The executive board commissioner of direct care and treatment shall decide to 
210.22 	accept or reject the commissioner's advisory opinion and recommended order within 60 
210.23 	days of the last county evidentiary submission and shall issue an immediate opinion stating 
210.24 	the reasons for accepting or rejecting the commissioner's recommendation.
210.25 	(c) The commissioner may make any investigation it the commissioner considers proper 
210.26 	before making a decision or a recommendation to the executive board commissioner of 
210.27 	direct care and treatment. The commissioner may prescribe rules it the commissioner
210.28 	considers necessary to carry out this subdivision except that the commissioner must not 
210.29 	create rules purporting to bind the executive board's decision of the commissioner of direct 
210.30 	care and treatment on any advisory opinion or recommended order under paragraph (b).
210.31 	(d) Except as provided in paragraph (e) for matters under the jurisdiction of the executive 
210.32 	board commissioner of direct care and treatment, the order of the commissioner binds the 
210.33 	local agency involved and the applicant or recipient. That agency shall comply with the 
211.1 	order unless reversed on appeal as provided in section 256.045, subdivision 7. The agency 
211.2 	shall comply with the order pending the appeal.
211.3 	(e) For disputes regarding financial responsibility relating to matters under the jurisdiction 
211.4 	of the Direct Care and Treatment executive board commissioner of direct care and treatment, 
211.5 	the order of the executive board commissioner of direct care and treatment binds the local 
211.6 	agency involved and the applicant or recipient. That agency shall comply with the order of 
211.7 	the executive board commissioner of direct care and treatment unless the order is reversed 
211.8 	on appeal as provided in section 256.045, subdivision 7. The agency shall comply with the 
211.9 	order of the executive board commissioner of direct care and treatment pending the appeal.

211.10 	Sec. 30. Minnesota Statutes 2024, section 352.91, subdivision 2a, is amended to read:
211.11 		Subd. 2a.Special teachers. "Covered correctional service" also means service rendered 
211.12 	by a state employee as a special teacher employed by the Department of Corrections or by 
211.13 	the Department of Direct Care and Treatment at a security unit, provided that at least 75 
211.14 	percent of the employee's working time is spent in direct contact with inmates or patients 
211.15 	and the fact of this direct contact is certified to the executive director by the appropriate 
211.16 	commissioner or executive board, unless the person elects to retain the current retirement 
211.17 	coverage under Laws 1996, chapter 408, article 8, section 21.

211.18 	Sec. 31. Minnesota Statutes 2024, section 352.91, subdivision 3c, is amended to read:
211.19 		Subd. 3c.Nursing personnel. (a) "Covered correctional service" means service by a 
211.20 	state employee in one of the employment positions at a correctional facility, in the 
211.21 	state-operated forensic services program, or in the Minnesota Sex Offender Program that 
211.22 	are specified in paragraph (b) if at least 75 percent of the employee's working time is spent 
211.23 	in direct contact with inmates or patients and the fact of this direct contact is certified to the 
211.24 	executive director by the appropriate commissioner or executive board.
211.25 	(b) The employment positions are as follows:
211.26 	(1) registered nurse - senior;
211.27 	(2) registered nurse;
211.28 	(3) registered nurse - principal;
211.29 	(4) licensed practical nurse;
211.30 	(5) registered nurse advance practice; and
211.31 	(6) psychiatric advance practice registered nurse.

212.1 	Sec. 32. Minnesota Statutes 2024, section 352.91, subdivision 3d, is amended to read:
212.2 		Subd. 3d.Other correctional personnel. (a) "Covered correctional service" means 
212.3 	service by a state employee in one of the employment positions at a correctional facility or 
212.4 	in the state-operated forensic services program specified in paragraph (b) if at least 75 
212.5 	percent of the employee's working time is spent in direct contact with inmates or patients 
212.6 	and the fact of this direct contact is certified to the executive director by the appropriate 
212.7 	commissioner or executive board.
212.8 	(b) The employment positions are:
212.9 	(1) automotive mechanic;
212.10 	(2) baker;
212.11 	(3) central services administrative specialist, intermediate;
212.12 	(4) central services administrative specialist, principal;
212.13 	(5) chaplain;
212.14 	(6) chief cook;
212.15 	(7) clinical program therapist 1;
212.16 	(8) clinical program therapist 2;
212.17 	(9) clinical program therapist 3;
212.18 	(10) clinical program therapist 4;
212.19 	(11) cook;
212.20 	(12) cook coordinator;
212.21 	(13) corrections inmate program coordinator;
212.22 	(14) corrections transitions program coordinator;
212.23 	(15) corrections security caseworker;
212.24 	(16) corrections security caseworker career;
212.25 	(17) corrections teaching assistant;
212.26 	(18) delivery van driver;
212.27 	(19) dentist;
212.28 	(20) electrician supervisor;
213.1 	(21) general maintenance worker lead;
213.2 	(22) general repair worker;
213.3 	(23) library/information research services specialist;
213.4 	(24) library/information research services specialist senior;
213.5 	(25) library technician;
213.6 	(26) painter lead;
213.7 	(27) plant maintenance engineer lead;
213.8 	(28) plumber supervisor;
213.9 	(29) psychologist 1;
213.10 	(30) psychologist 3;
213.11 	(31) recreation therapist;
213.12 	(32) recreation therapist coordinator;
213.13 	(33) recreation program assistant;
213.14 	(34) recreation therapist senior;
213.15 	(35) sports medicine specialist;
213.16 	(36) work therapy assistant;
213.17 	(37) work therapy program coordinator; and
213.18 	(38) work therapy technician.

213.19 	Sec. 33. Minnesota Statutes 2024, section 352.91, subdivision 4a, is amended to read:
213.20 		Subd. 4a.Process for evaluating and recommending potential employment positions 
213.21 	for membership inclusion. (a) The Department of Corrections and the Department of 
213.22 	Direct Care and Treatment must establish a procedure for evaluating periodic requests by 
213.23 	department and agency employees for qualification for recommendation by the applicable 
213.24 	commissioner or executive board for inclusion of the employment position in the correctional 
213.25 	facility or direct care and treatment facility in the correctional retirement plan and for 
213.26 	periodically determining employment positions that no longer qualify for continued 
213.27 	correctional retirement plan coverage.
213.28 	(b) The procedure must provide for an evaluation of the extent of the employee's working 
213.29 	time spent in direct contact with patients or inmates, the extent of the physical hazard that 
214.1 	the employee is routinely subjected to in the course of employment, and the extent of 
214.2 	intervention routinely expected of the employee in the event of a facility incident. The 
214.3 	percentage of routine direct contact with inmates or patients may not be less than 75 percent.
214.4 	(c) The applicable commissioner or executive board shall notify the employee of the 
214.5 	determination of the appropriateness of recommending the employment position for inclusion 
214.6 	in the correctional retirement plan, if the evaluation procedure results in a finding that the 
214.7 	employee:
214.8 	(1) routinely spends 75 percent of the employee's time in direct contact with inmates or 
214.9 	patients; and
214.10 	(2) is regularly engaged in the rehabilitation, treatment, custody, or supervision of inmates 
214.11 	or patients.
214.12 	(d) After providing the affected employee an opportunity to dispute or clarify any 
214.13 	evaluation determinations, if the applicable commissioner or executive board determines 
214.14 	that the employment position is appropriate for inclusion in the correctional retirement plan, 
214.15 	the commissioner or executive board shall forward that recommendation and supporting 
214.16 	documentation to the chair of the Legislative Commission on Pensions and Retirement, the 
214.17 	chair of the State and Local Governmental Operations Committee of the senate, the chair 
214.18 	of the Governmental Operations and Veterans Affairs Policy Committee of the house of 
214.19 	representatives, and the executive director of the Legislative Commission on Pensions and 
214.20 	Retirement in the form of the appropriate proposed legislation. The recommendation must 
214.21 	be forwarded to the legislature before January 15 for the recommendation to be considered 
214.22 	in that year's legislative session.

214.23 	Sec. 34. Minnesota Statutes 2024, section 524.3-801, is amended to read:
214.24 	524.3-801 NOTICE TO CREDITORS.
214.25 	(a) Unless notice has already been given under this section, upon appointment of a 
214.26 	general personal representative in informal proceedings or upon the filing of a petition for 
214.27 	formal appointment of a general personal representative, notice thereof, in the form prescribed 
214.28 	by court rule, shall be given under the direction of the court administrator by publication 
214.29 	once a week for two successive weeks in a legal newspaper in the county wherein the 
214.30 	proceedings are pending giving the name and address of the general personal representative 
214.31 	and notifying creditors of the estate to present their claims within four months after the date 
214.32 	of the court administrator's notice which is subsequently published or be forever barred, 
214.33 	unless they are entitled to further service of notice under paragraph (b) or (c).
215.1 	(b) The personal representative shall, within three months after the date of the first 
215.2 	publication of the notice, serve a copy of the notice upon each then known and identified 
215.3 	creditor in the manner provided in paragraph (c). If the decedent or a predeceased spouse 
215.4 	of the decedent received assistance for which a claim could be filed under section 246.53, 
215.5 	256B.15, 256D.16, or 261.04, notice to the commissioner of human services or Direct Care 
215.6 	and Treatment executive board the commissioner of direct care and treatment, as applicable, 
215.7 	must be given under paragraph (d) instead of under this paragraph or paragraph (c). A 
215.8 	creditor is "known" if: (i) the personal representative knows that the creditor has asserted 
215.9 	a claim that arose during the decedent's life against either the decedent or the decedent's 
215.10 	estate; (ii) the creditor has asserted a claim that arose during the decedent's life and the fact 
215.11 	is clearly disclosed in accessible financial records known and available to the personal 
215.12 	representative; or (iii) the claim of the creditor would be revealed by a reasonably diligent 
215.13 	search for creditors of the decedent in accessible financial records known and available to 
215.14 	the personal representative. Under this section, a creditor is "identified" if the personal 
215.15 	representative's knowledge of the name and address of the creditor will permit service of 
215.16 	notice to be made under paragraph (c).
215.17 	(c) Unless the claim has already been presented to the personal representative or paid, 
215.18 	the personal representative shall serve a copy of the notice required by paragraph (b) upon 
215.19 	each creditor of the decedent who is then known to the personal representative and identified 
215.20 	either by delivery of a copy of the required notice to the creditor, or by mailing a copy of 
215.21 	the notice to the creditor by certified, registered, or ordinary first class mail addressed to 
215.22 	the creditor at the creditor's office or place of residence.
215.23 	(d)(1) Effective for decedents dying on or after July 1, 1997, if the decedent or a 
215.24 	predeceased spouse of the decedent received assistance for which a claim could be filed 
215.25 	under section 246.53, 256B.15, 256D.16, or 261.04, the personal representative or the 
215.26 	attorney for the personal representative shall serve the commissioner of human services or 
215.27 	executive board the commissioner of direct care and treatment, as applicable, with notice 
215.28 	in the manner prescribed in paragraph (c), or electronically in a manner prescribed by the 
215.29 	applicable commissioner or executive board, as soon as practicable after the appointment 
215.30 	of the personal representative. The notice must state the decedent's full name, date of birth, 
215.31 	and Social Security number and, to the extent then known after making a reasonably diligent 
215.32 	inquiry, the full name, date of birth, and Social Security number for each of the decedent's 
215.33 	predeceased spouses. The notice may also contain a statement that, after making a reasonably 
215.34 	diligent inquiry, the personal representative has determined that the decedent did not have 
215.35 	any predeceased spouses or that the personal representative has been unable to determine 
216.1 	one or more of the previous items of information for a predeceased spouse of the decedent. 
216.2 	A copy of the notice to creditors must be attached to and be a part of the notice to the 
216.3 	applicable commissioner or executive board.
216.4 	(2) Notwithstanding a will or other instrument or law to the contrary, except as allowed 
216.5 	in this paragraph, no property subject to administration by the estate may be distributed by 
216.6 	the estate or the personal representative until 70 days after the date the notice is served on 
216.7 	the commissioner of human services or executive board commissioner of direct care and 
216.8 	treatment as provided in paragraph (c), unless the local agency consents as provided for in 
216.9 	clause (6). This restriction on distribution does not apply to the personal representative's 
216.10 	sale of real or personal property, but does apply to the net proceeds the estate receives from 
216.11 	these sales. The personal representative, or any person with personal knowledge of the facts, 
216.12 	may provide an affidavit containing the description of any real or personal property affected 
216.13 	by this paragraph and stating facts showing compliance with this paragraph. If the affidavit 
216.14 	describes real property, it may be filed or recorded in the office of the county recorder or 
216.15 	registrar of titles for the county where the real property is located. This paragraph does not 
216.16 	apply to proceedings under sections 524.3-1203 and 525.31, or when a duly authorized 
216.17 	agent of a county is acting as the personal representative of the estate.
216.18 	(3) At any time before an order or decree is entered under section 524.3-1001 or 
216.19 	524.3-1002, or a closing statement is filed under section 524.3-1003, the personal 
216.20 	representative or the attorney for the personal representative may serve an amended notice 
216.21 	on the commissioner of human services or executive board commissioner of direct care and 
216.22 	treatment to add variations or other names of the decedent or a predeceased spouse named 
216.23 	in the notice, the name of a predeceased spouse omitted from the notice, to add or correct 
216.24 	the date of birth or Social Security number of a decedent or predeceased spouse named in 
216.25 	the notice, or to correct any other deficiency in a prior notice. The amended notice must 
216.26 	state the decedent's name, date of birth, and Social Security number, the case name, case 
216.27 	number, and district court in which the estate is pending, and the date the notice being 
216.28 	amended was served on the applicable commissioner or executive board. If the amendment 
216.29 	adds the name of a predeceased spouse omitted from the notice, it must also state that 
216.30 	spouse's full name, date of birth, and Social Security number. The amended notice must be 
216.31 	served on the applicable commissioner or executive board in the same manner as the original 
216.32 	notice. Upon service, the amended notice relates back to and is effective from the date the 
216.33 	notice it amends was served, and the time for filing claims arising under section 246.53, 
216.34 	256B.15, 256D.16 or 261.04 is extended by 60 days from the date of service of the amended 
216.35 	notice. Claims filed during the 60-day period are undischarged and unbarred claims, may 
217.1 	be prosecuted by the entities entitled to file those claims in accordance with section 
217.2 	524.3-1004, and the limitations in section 524.3-1006 do not apply. The personal 
217.3 	representative or any person with personal knowledge of the facts may provide and file or 
217.4 	record an affidavit in the same manner as provided for in clause (1).
217.5 	(4) Within one year after the date an order or decree is entered under section 524.3-1001 
217.6 	or 524.3-1002 or a closing statement is filed under section 524.3-1003, any person who has 
217.7 	an interest in property that was subject to administration by the estate may serve an amended 
217.8 	notice on the commissioner of human services or executive board commissioner of direct 
217.9 	care and treatment to add variations or other names of the decedent or a predeceased spouse 
217.10 	named in the notice, the name of a predeceased spouse omitted from the notice, to add or 
217.11 	correct the date of birth or Social Security number of a decedent or predeceased spouse 
217.12 	named in the notice, or to correct any other deficiency in a prior notice. The amended notice 
217.13 	must be served on the applicable commissioner or executive board in the same manner as 
217.14 	the original notice and must contain the information required for amendments under clause 
217.15 	(3). If the amendment adds the name of a predeceased spouse omitted from the notice, it 
217.16 	must also state that spouse's full name, date of birth, and Social Security number. Upon 
217.17 	service, the amended notice relates back to and is effective from the date the notice it amends 
217.18 	was served. If the amended notice adds the name of an omitted predeceased spouse or adds 
217.19 	or corrects the Social Security number or date of birth of the decedent or a predeceased 
217.20 	spouse already named in the notice, then, notwithstanding any other laws to the contrary, 
217.21 	claims against the decedent's estate on account of those persons resulting from the amendment 
217.22 	and arising under section 246.53, 256B.15, 256D.16, or 261.04 are undischarged and 
217.23 	unbarred claims, may be prosecuted by the entities entitled to file those claims in accordance 
217.24 	with section 524.3-1004, and the limitations in section 524.3-1006 do not apply. The person 
217.25 	filing the amendment or any other person with personal knowledge of the facts may provide 
217.26 	and file or record an affidavit describing affected real or personal property in the same 
217.27 	manner as clause (1).
217.28 	(5) After one year from the date an order or decree is entered under section 524.3-1001 
217.29 	or 524.3-1002, or a closing statement is filed under section 524.3-1003, no error, omission, 
217.30 	or defect of any kind in the notice to the commissioner of human services or executive board
217.31 	commissioner of direct care and treatment required under this paragraph or in the process 
217.32 	of service of the notice on the applicable commissioner or executive board, or the failure 
217.33 	to serve the applicable commissioner or executive board with notice as required by this 
217.34 	paragraph, makes any distribution of property by a personal representative void or voidable. 
218.1 	The distributee's title to the distributed property shall be free of any claims based upon a 
218.2 	failure to comply with this paragraph.
218.3 	(6) The local agency may consent to a personal representative's request to distribute 
218.4 	property subject to administration by the estate to distributees during the 70-day period after 
218.5 	service of notice on the applicable commissioner or executive board. The local agency may 
218.6 	grant or deny the request in whole or in part and may attach conditions to its consent as it 
218.7 	deems appropriate. When the local agency consents to a distribution, it shall give the estate 
218.8 	a written certificate evidencing its consent to the early distribution of assets at no cost. The 
218.9 	certificate must include the name, case number, and district court in which the estate is 
218.10 	pending, the name of the local agency, describe the specific real or personal property to 
218.11 	which the consent applies, state that the local agency consents to the distribution of the 
218.12 	specific property described in the consent during the 70-day period following service of the 
218.13 	notice on the applicable commissioner or executive board, state that the consent is 
218.14 	unconditional or list all of the terms and conditions of the consent, be dated, and may include 
218.15 	other contents as may be appropriate. The certificate must be signed by the director of the 
218.16 	local agency or the director's designees and is effective as of the date it is dated unless it 
218.17 	provides otherwise. The signature of the director or the director's designee does not require 
218.18 	any acknowledgment. The certificate shall be prima facie evidence of the facts it states, 
218.19 	may be attached to or combined with a deed or any other instrument of conveyance and, 
218.20 	when so attached or combined, shall constitute a single instrument. If the certificate describes 
218.21 	real property, it shall be accepted for recording or filing by the county recorder or registrar 
218.22 	of titles in the county in which the property is located. If the certificate describes real property 
218.23 	and is not attached to or combined with a deed or other instrument of conveyance, it shall 
218.24 	be accepted for recording or filing by the county recorder or registrar of titles in the county 
218.25 	in which the property is located. The certificate constitutes a waiver of the 70-day period 
218.26 	provided for in clause (2) with respect to the property it describes and is prima facie evidence 
218.27 	of service of notice on the applicable commissioner or executive board. The certificate is 
218.28 	not a waiver or relinquishment of any claims arising under section 246.53, 256B.15, 256D.16, 
218.29 	or 261.04, and does not otherwise constitute a waiver of any of the personal representative's 
218.30 	duties under this paragraph. Distributees who receive property pursuant to a consent to an 
218.31 	early distribution shall remain liable to creditors of the estate as provided for by law.
218.32 	(7) All affidavits provided for under this paragraph:
218.33 	(i) shall be provided by persons who have personal knowledge of the facts stated in the 
218.34 	affidavit;
219.1 	(ii) may be filed or recorded in the office of the county recorder or registrar of titles in 
219.2 	the county in which the real property they describe is located for the purpose of establishing 
219.3 	compliance with the requirements of this paragraph; and
219.4 	(iii) are prima facie evidence of the facts stated in the affidavit.
219.5 	(8) This paragraph applies to the estates of decedents dying on or after July 1, 1997. 
219.6 	Clause (5) also applies with respect to all notices served on the commissioner of human 
219.7 	services before July 1, 1997, under Laws 1996, chapter 451, article 2, section 55. All notices 
219.8 	served on the commissioner of human services before July 1, 1997, pursuant to Laws 1996, 
219.9 	chapter 451, article 2, section 55, shall be deemed to be legally sufficient for the purposes 
219.10 	for which they were intended, notwithstanding any errors, omissions or other defects.

219.11 	Sec. 35. Minnesota Statutes 2024, section 611.57, subdivision 2, is amended to read:
219.12 		Subd. 2.Membership. (a) The Certification Advisory Committee consists of the 
219.13 	following members:
219.14 	(1) a mental health professional, as defined in section 245I.02, subdivision 27, with 
219.15 	community behavioral health experience, appointed by the governor;
219.16 	(2) a board-certified forensic psychiatrist with experience in competency evaluations, 
219.17 	providing competency attainment services, or both, appointed by the governor;
219.18 	(3) a board-certified forensic psychologist with experience in competency evaluations, 
219.19 	providing competency attainment services, or both, appointed by the governor;
219.20 	(4) the president of the Minnesota Corrections Association or a designee;
219.21 	(5) the direct care and treatment deputy commissionerchief executive officer of direct 
219.22 	care and treatment or a designee;
219.23 	(6) the president of the Minnesota Association of County Social Service Administrators 
219.24 	or a designee;
219.25 	(7) the president of the Minnesota Association of Community Mental Health Providers 
219.26 	or a designee;
219.27 	(8) the president of the Minnesota Sheriffs' Association or a designee; and
219.28 	(9) the executive director of the National Alliance on Mental Illness Minnesota or a 
219.29 	designee.
220.1 	(b) Members of the advisory committee serve without compensation and at the pleasure 
220.2 	of the appointing authority. Vacancies shall be filled by the appointing authority consistent 
220.3 	with the qualifications of the vacating member required by this subdivision.

220.4 	Sec. 36. REVISOR INSTRUCTION.
 220.5 	The revisor of statutes shall renumber each provision of Minnesota Statutes listed in 
220.6 	column A to the number listed in column B.

220.7		Column A
	Column B
	
220.8		246B.01, subdivision 2b
	246B.01, subdivision 2f
	
220.9		246B.01, subdivision 2c
	246B.01, subdivision 2g
	
220.10		246B.01, subdivision 2d
	246B.01, subdivision 2h

220.11 	Sec. 37. REPEALER.
 220.12 	Minnesota Statutes 2024, sections 246B.01, subdivision 2; 252.021, subdivision 2; 
220.13 	253.195, subdivision 2; 253B.02, subdivision 7b; 253D.02, subdivision 7a; 254B.01, 
220.14 	subdivision 15; 256.045, subdivision 1a; and 256G.02, subdivision 5a, are repealed.

220.15 	Sec. 38. EFFECTIVE DATE.
 220.16 	This article is effective the day following final enactment.

220.17 	ARTICLE 9
220.18 	DEPARTMENT OF HEALTH

220.19 	Section 1. Minnesota Statutes 2024, section 144A.01, subdivision 4, is amended to read:
220.20 		Subd. 4.Controlling person. (a) "Controlling person" means an owner and the following 
220.21 	individuals and entities, if applicable:
220.22 	(1) each officer of the organization, including the chief executive officer and the chief 
220.23 	financial officer;
220.24 	(2) the nursing home administrator; and
220.25 	(3) any managerial official.; and
220.26 	(4) if no individual has at least a five percent ownership interest, every individual with 
220.27 	an ownership interest in a privately held corporation, limited liability company, or other 
220.28 	business entity, including a business entity that is publicly traded or nonpublicly traded, 
220.29 	that collects capital investments from individuals or entities.
221.1 	(b) "Controlling person" also means any entity or natural person who has any direct or 
221.2 	indirect ownership interest in:
221.3 	(1) any corporation, partnership or other business association which is a controlling 
221.4 	person;
221.5 	(2) the land on which a nursing home is located;
221.6 	(3) the structure in which a nursing home is located;
221.7 	(4) any entity with at least a five percent mortgage, contract for deed, deed of trust, or 
221.8 	other security interest in the land or structure comprising a nursing home; or
221.9 	(5) any lease or sublease of the land, structure, or facilities comprising a nursing home.
221.10 	(c) "Controlling person" does not include:
221.11 	(1) a bank, savings bank, trust company, savings association, credit union, industrial 
221.12 	loan and thrift company, investment banking firm, or insurance company unless the entity 
221.13 	directly or through a subsidiary operates a nursing home;
221.14 	(2) government and government-sponsored entities such as the United States Department 
221.15 	of Housing and Urban Development, Ginnie Mae, Fannie Mae, Freddie Mac, and the 
221.16 	Minnesota Housing Finance Agency which provide loans, financing, and insurance products 
221.17 	for housing sites;
221.18 	(3) an individual who is a state or federal official, a state or federal employee, or a 
221.19 	member or employee of the governing body of a political subdivision of the state or federal 
221.20 	government that operates one or more nursing homes, unless the individual is also an officer, 
221.21 	owner, or managerial official of the nursing home, receives any remuneration from a nursing 
221.22 	home, or who is a controlling person not otherwise excluded in this subdivision;
221.23 	(4) a natural person who is a member of a tax-exempt organization under section 290.05, 
221.24 	subdivision 2, unless the individual is also a controlling person not otherwise excluded in 
221.25 	this subdivision; and
221.26 	(5) a natural person who owns less than five percent of the outstanding common shares 
221.27 	of a corporation:
221.28 	(i) whose securities are exempt by virtue of section 80A.45, clause (6); or
221.29 	(ii) whose transactions are exempt by virtue of section 80A.46, clause (7).

222.1 	Sec. 2. Minnesota Statutes 2024, section 144A.474, subdivision 11, is amended to read:
222.2 		Subd. 11.Fines. (a) Fines and enforcement actions under this subdivision may be assessed 
222.3 	based on the level and scope of the violations described in paragraph (b) and imposed 
222.4 	immediately with no opportunity to correct the violation first as follows:
222.5 	(1) Level 1, no fines or enforcement;
222.6 	(2) Level 2, a fine of $500 per violation, in addition to any of the enforcement 
222.7 	mechanisms authorized in section 144A.475 for widespread violations;
222.8 	(3) Level 3, a fine of $3,000 per incident, in addition to any of the enforcement 
222.9 	mechanisms authorized in section 144A.475;
222.10 	(4) Level 4, a fine of $5,000 per incident, in addition to any of the enforcement 
222.11 	mechanisms authorized in section 144A.475;
222.12 	(5) for maltreatment violations for which the licensee was determined to be responsible 
222.13 	for the maltreatment under section 626.557, subdivision 9c, paragraph (c), a fine of $1,000. 
222.14 	A fine of $5,000 may be imposed if the commissioner determines the licensee is responsible 
222.15 	for maltreatment consisting of sexual assault, death, or abuse resulting in serious injury; 
222.16 	and
222.17 	(6) the fines in clauses (1) to (4) are increased and immediate fine imposition is authorized 
222.18 	for both surveys and investigations conducted.
222.19 	When a fine is assessed against a facility for substantiated maltreatment, the commissioner 
222.20 	shall not also impose an immediate fine under this chapter for the same circumstance.
222.21 	(b) Correction orders for violations are categorized by both level and scope and fines 
222.22 	shall be assessed as follows:
222.23 	(1) level of violation:
222.24 	(i) Level 1 is a violation that has no potential to cause more than a minimal impact on 
222.25 	the client and does not affect health or safety;
222.26 	(ii) Level 2 is a violation that did not harm a client's health or safety but had the potential 
222.27 	to have harmed a client's health or safety, but was not likely to cause serious injury, 
222.28 	impairment, or death;
222.29 	(iii) Level 3 is a violation that harmed a client's health or safety, not including serious 
222.30 	injury, impairment, or death, or a violation that has the potential to lead to serious injury, 
222.31 	impairment, or death; and
223.1 	(iv) Level 4 is a violation that results in serious injury, impairment, or death;
223.2 	(2) scope of violation:
223.3 	(i) isolated, when one or a limited number of clients are affected or one or a limited 
223.4 	number of staff are involved or the situation has occurred only occasionally;
223.5 	(ii) pattern, when more than a limited number of clients are affected, more than a limited 
223.6 	number of staff are involved, or the situation has occurred repeatedly but is not found to be 
223.7 	pervasive; and
223.8 	(iii) widespread, when problems are pervasive or represent a systemic failure that has 
223.9 	affected or has the potential to affect a large portion or all of the clients.
223.10 	(c) If the commissioner finds that the applicant or a home care provider has not corrected 
223.11 	violations by the date specified in the correction order or conditional license resulting from 
223.12 	a survey or complaint investigation, the commissioner shall provide a notice of 
223.13 	noncompliance with a correction order by email to the applicant's or provider's last known 
223.14 	email address. The noncompliance notice must list the violations not corrected.
223.15 	(d) For every violation identified by the commissioner, the commissioner shall issue an 
223.16 	immediate fine pursuant to paragraph (a), clause (6). The license holder must still correct 
223.17 	the violation in the time specified. The issuance of an immediate fine can occur in addition 
223.18 	to any enforcement mechanism authorized under section 144A.475. The immediate fine 
223.19 	may be appealed as allowed under this subdivision.
223.20 	(e) The license holder must pay the fines assessed on or before the payment date specified. 
223.21 	If the license holder fails to fully comply with the order, the commissioner may issue a 
223.22 	second fine or suspend the license until the license holder complies by paying the fine. A 
223.23 	timely appeal shall stay payment of the fine until the commissioner issues a final order.
223.24 	(f) A license holder shall promptly notify the commissioner in writing when a violation 
223.25 	specified in the order is corrected. If upon reinspection the commissioner determines that 
223.26 	a violation has not been corrected as indicated by the order, the commissioner may issue a 
223.27 	second fine. The commissioner shall notify the license holder by mail to the last known 
223.28 	address in the licensing record that a second fine has been assessed. The license holder may 
223.29 	appeal the second fine as provided under this subdivision.
223.30 	(g) A home care provider that has been assessed a fine under this subdivision has a right 
223.31 	to a reconsideration or a hearing under this section and chapter 14.
224.1 	(h) When a fine has been assessed, the license holder may not avoid payment by closing, 
224.2 	selling, or otherwise transferring the licensed program to a third party. In such an event, the 
224.3 	license holder shall be liable for payment of the fine.
224.4 	(i) In addition to any fine imposed under this section, the commissioner may assess a 
224.5 	penalty amount based on costs related to an investigation that results in a final order assessing 
224.6 	a fine or other enforcement action authorized by this chapter.
224.7 	(j) Fines collected under paragraph (a), clauses (1) to (4), shall be deposited in a dedicated 
224.8 	special revenue account. On an annual basis, the balance in the special revenue account 
224.9 	shall be appropriated to the commissioner to implement the recommendations of the advisory 
224.10 	council established in section 144A.4799. The commissioner must publish on the department's 
224.11 	website an annual report on the fines assessed and collected, and how the appropriated 
224.12 	money was allocated.
224.13 	(k) Fines collected under paragraph (a), clause (5), shall be deposited in a dedicated 
224.14 	special revenue account and appropriated to the commissioner to provide compensation 
224.15 	according to subdivision 14 to clients subject to maltreatment. A client may choose to receive 
224.16 	compensation from this fund, not to exceed $5,000 for each substantiated finding of 
224.17 	maltreatment, or take civil action. This paragraph expires July 31, 2021.

224.18 	Sec. 3. Minnesota Statutes 2024, section 144A.4799, is amended to read:
224.19 	144A.4799 DEPARTMENT OF HEALTH LICENSED HOME CARE PROVIDER
224.20 	AND ASSISTED LIVING ADVISORY COUNCIL.
224.21 		Subdivision 1.Membership. The commissioner of health shall appoint 13 14 persons 
224.22 	to a home care and assisted living program advisory council consisting of the following:
224.23 	(1) two four public members as defined in section 214.02who shall be persons who are 
224.24 	currently receiving home care services, persons who have received home care services 
224.25 	within five years of the application date, persons who have family members receiving home 
224.26 	care services, or persons who have family members who have received home care services 
224.27 	within five years of the application date, one of whom must be a person who either is 
224.28 	receiving or has received home care services preferably within the five years prior to initial 
224.29 	appointment, one of whom must be a person who has or had a family member receiving 
224.30 	home care services preferably within the five years prior to initial appointment, one of whom 
224.31 	must be a person who either is or has been a resident in an assisted living facility preferably 
224.32 	within the five years prior to initial appointment, and one of whom must be a person who 
225.1 	has or had a family member residing in an assisted living facility preferably within the five 
225.2 	years prior to initial appointment;
225.3 	(2) two Minnesota home care licensees representing basic and comprehensive levels of 
225.4 	licensure who may be a managerial official, an administrator, a supervising registered nurse, 
225.5 	or an unlicensed personnel performing home care tasks;
225.6 	(3) one member representing the Minnesota Board of Nursing;
225.7 	(4) one member representing the Office of Ombudsman for Long-Term Care;
225.8 	(5) one member representing the Office of Ombudsman for Mental Health and 
225.9 	Developmental Disabilities;
225.10 	(6) beginning July 1, 2021, one member of a county health and human services or county 
225.11 	adult protection office;
225.12 	(7) two Minnesota assisted living facility licensees representing assisted living facilities 
225.13 	and assisted living facilities with dementia care levels of licensure who may be the facility's 
225.14 	assisted living director, managerial official, or clinical nurse supervisor;
225.15 	(8) one organization representing long-term care providers, home care providers, and 
225.16 	assisted living providers in Minnesota; and
225.17 	(9) two public members as defined in section 214.02. One public member shall be a 
225.18 	person who either is or has been a resident in an assisted living facility and one public 
225.19 	member shall be a person who has or had a family member living in an assisted living 
225.20 	facility setting one representative of a consumer advocacy organization representing 
225.21 	individuals receiving long-term care from licensed home care or assisted living providers.
225.22 		Subd. 2.Organizations and meetings. The advisory council shall be organized and 
225.23 	administered under section 15.059 with per diems and costs paid within the limits of available 
225.24 	appropriations. Meetings will be held quarterly and hosted by the department. Subcommittees 
225.25 	may be developed as necessary by the commissioner. Advisory council meetings are subject 
225.26 	to the Open Meeting Law under chapter 13D.
225.27 		Subd. 3.Duties. (a) At the commissioner's request, the advisory council shall provide 
225.28 	advice regarding regulations of Department of Health licensed assisted living and home 
225.29 	care providers in this chapter and chapter 144G, including advice on the following:
225.30 	(1) community standards for home care practices;
225.31 	(2) enforcement of licensing standards and whether certain disciplinary actions are 
225.32 	appropriate;
226.1 	(3) ways of distributing information to licensees and consumers of .home care and 
226.2 	assisted living services defined under chapter 144G;
226.3 	(4) training standards;
226.4 	(5) identifying emerging issues and opportunities in home care and assisted living services 
226.5 	defined under chapter 144G;
226.6 	(6) identifying the use of technology in home and telehealth capabilities;
226.7 	(7) allowable home care licensing modifications and exemptions, including a method 
226.8 	for an integrated license with an existing license for rural licensed nursing homes to provide 
226.9 	limited home care services in an adjacent independent living apartment building owned by 
226.10 	the licensed nursing home; and
226.11 	(8) recommendations for studies using the data in section 62U.04, subdivision 4, including 
226.12 	but not limited to studies concerning costs related to dementia and chronic disease among 
226.13 	an elderly population over 60 and additional long-term care costs, as described in section 
226.14 	62U.10, subdivision 6.
226.15 	(b) The advisory council shall perform other duties as directed by the commissioner.
226.16 	(c) The advisory council shall annually make recommendations annually to the 
226.17 	commissioner for the purposes of allocating the appropriation in section sections144A.474, 
226.18 	subdivision 11, paragraph (i) (j), and 144G.31, subdivision 8. The commissioner shall act 
226.19 	upon the recommendations of the advisory council within one year of the advisory council 
226.20 	submitting its recommendations to the commissioner. The recommendations shall address 
226.21 	ways the commissioner may improve protection of the public under existing statutes and 
226.22 	laws and improve quality of care. The council's recommendations may include but are not 
226.23 	limited to special projects or initiatives that:
226.24 	(1) create and administer training of licensees and ongoing training for their employees 
226.25 	to improve clients' and residents' lives, supporting ways that support licensees,can improve 
226.26 	and enhance quality care, and ways to provide technical assistance to licensees to improve 
226.27 	compliance;
226.28 	(2) develop and implement information technology and data projects that analyze and 
226.29 	communicate information about trends of in violations or lead to ways of improving resident 
226.30 	and client care;
226.31 	(3) improve communications strategies to licensees and the public;
226.32 	(4) recruit and retain direct care staff;
227.1 	(5) recommend education related to the care of vulnerable adults in professional nursing 
227.2 	programs, nurse aide programs, and home health aide programs; and
227.3 	(6)other projects or pilots that benefit residents, clients, families, and the public in other 
227.4 	ways.

227.5 	EFFECTIVE DATE. This section is effective July 1, 2025, and the amendments to 
227.6 	subdivision 1, clause (1), apply to members whose initial appointment occurs on or after 
227.7 	that date.

227.8 	Sec. 4. Minnesota Statutes 2024, section 144G.08, subdivision 15, is amended to read:
227.9 		Subd. 15.Controlling individual. (a) "Controlling individual" means an owner and the 
227.10 	following individuals and entities, if applicable:
227.11 	(1) each officer of the organization, including the chief executive officer and chief 
227.12 	financial officer;
227.13 	(2) each managerial official; and
227.14 	(3) any entity with at least a five percent mortgage, deed of trust, or other security interest 
227.15 	in the facility.; and
227.16 	(4) if no individual has at least a five percent ownership interest, every individual with 
227.17 	an ownership interest in a privately held corporation, limited liability company, or other 
227.18 	business entity, including a business entity that is publicly traded or nonpublicly traded, 
227.19 	that collects capital investments from individuals or entities.
227.20 	(b) "Controlling individual" also means any entity or natural person who has any direct 
227.21 	or indirect ownership interest in:
227.22 	(1) any corporation, partnership, or other business association such as a limited liability 
227.23 	company that is a controlling individual;
227.24 	(2) the land on which an assisted living facility is located; or
227.25 	(3) the structure in which an assisted living facility is located.
227.26 	(b) (c) Controlling individual does not include:
227.27 	(1) a bank, savings bank, trust company, savings association, credit union, industrial 
227.28 	loan and thrift company, investment banking firm, or insurance company unless the entity 
227.29 	operates a program directly or through a subsidiary;
227.30 	(2) government and government-sponsored entities such as the U.S. Department of 
227.31 	Housing and Urban Development, Ginnie Mae, Fannie Mae, Freddie Mac, and the Minnesota 
228.1 	Housing Finance Agency which provide loans, financing, and insurance products for housing 
228.2 	sites;
228.3 	(3) an individual who is a state or federal official, a state or federal employee, or a 
228.4 	member or employee of the governing body of a political subdivision of the state or federal 
228.5 	government that operates one or more facilities, unless the individual is also an officer, 
228.6 	owner, or managerial official of the facility, receives remuneration from the facility, or 
228.7 	owns any of the beneficial interests not excluded in this subdivision;
228.8 	(4) an individual who owns less than five percent of the outstanding common shares of 
228.9 	a corporation:
228.10 	(i) whose securities are exempt under section 80A.45, clause (6); or
228.11 	(ii) whose transactions are exempt under section 80A.46, clause (2);
228.12 	(5) an individual who is a member of an organization exempt from taxation under section 
228.13 	290.05, unless the individual is also an officer, owner, or managerial official of the license 
228.14 	or owns any of the beneficial interests not excluded in this subdivision. This clause does 
228.15 	not exclude from the definition of controlling individual an organization that is exempt from 
228.16 	taxation; or
228.17 	(6) an employee stock ownership plan trust, or a participant or board member of an 
228.18 	employee stock ownership plan, unless the participant or board member is a controlling 
228.19 	individual.

228.20 	Sec. 5. Minnesota Statutes 2024, section 144G.31, subdivision 8, is amended to read:
228.21 		Subd. 8.Deposit of fines. Fines collected under this section shall be deposited in a 
228.22 	dedicated special revenue account. On an annual basis, the balance in the special revenue 
228.23 	account shall be appropriated to the commissioner for special projects to improve resident 
228.24 	quality of care and outcomes in assisted living facilities licensed under this chapter in 
228.25 	Minnesota as recommended by the advisory council established in section 144A.4799. The 
228.26 	commissioner must publish on the department's website an annual report on the fines assessed 
228.27 	and collected, and how the appropriated money was allocated.

228.28 	Sec. 6. Minnesota Statutes 2024, section 144G.52, subdivision 1, is amended to read:
228.29 		Subdivision 1.Definition. For purposes of sections 144G.52 to 144G.55, "termination" 
228.30 	means:
229.1 	(1) a facility-initiated termination of housing provided to the resident under the contract
229.2 	an assisted living contract; or
229.3 	(2) a facility-initiated termination or nonrenewal of all assisted living services the resident 
229.4 	receives from the facility under the assisted living contract.

229.5 	Sec. 7. Minnesota Statutes 2024, section 144G.52, subdivision 2, is amended to read:
229.6 		Subd. 2.Prerequisite to termination of a contract. (a) Before issuing a notice of 
229.7 	termination of an assisted living contract, a facility must schedule and participate in a meeting 
229.8 	with the resident and the resident's legal representative and designated representative. The 
229.9 	purposes of the meeting are to:
229.10 	(1) explain in detail the reasons for the proposed termination; and
229.11 	(2) identify and offer reasonable accommodations or modifications, interventions, or 
229.12 	alternatives to avoid the termination or enable the resident to remain in the facility, including 
229.13 	but not limited to securing services from another provider of the resident's choosing that 
229.14 	may allow the resident to avoid the termination. A facility is not required to offer 
229.15 	accommodations, modifications, interventions, or alternatives that fundamentally alter the 
229.16 	nature of the operation of the facility.
229.17 	(b) For a termination pursuant to subdivision 3 or 4, the meeting must be scheduled to 
229.18 	take place at least seven days before a notice of termination is issued. The facility must 
229.19 	make reasonable efforts to ensure that the resident, legal representative, and designated 
229.20 	representative are able to attend the meeting.
229.21 	(c) For a termination pursuant to subdivision 5, the meeting must be scheduled to take 
229.22 	place at least 24 hours before a notice of termination is issued. The facility must make 
229.23 	reasonable efforts to ensure that the resident, legal representative, and designated 
229.24 	representative are able to attend the meeting. Notice of the meeting must be provided at 
229.25 	least 24 hours prior to the meeting.
229.26 	(d) The facility must notify the resident that the resident may invite family members, 
229.27 	relevant health professionals, a representative of the Office of Ombudsman for Long-Term 
229.28 	Care, a representative of the Office of Ombudsman for Mental Health and Developmental 
229.29 	Disabilities, or other persons of the resident's choosing to participate in the meeting. For 
229.30 	residents who receive home and community-based waiver services under chapter 256S and 
229.31 	section 256B.49, the facility must notify the resident's case manager of the meeting.
229.32 	(d) (e) In the event of an emergency relocation under subdivision 9, where the facility 
229.33 	intends to issue a notice of termination and an in-person meeting is impractical or impossible, 
230.1 	the facility must use telephone, video, or other electronic means to conduct and participate 
230.2 	in the meeting required under this subdivision and rules within Minnesota Rules, chapter 
230.3 	4659.

230.4 	Sec. 8. Minnesota Statutes 2024, section 144G.52, subdivision 3, is amended to read:
230.5 		Subd. 3.Termination for nonpayment. (a) A facility may initiate a termination of 
230.6 	housing an assisted living contract because of nonpayment of rent or a termination of services 
230.7 	because of nonpayment for services. Upon issuance of a notice of termination for 
230.8 	nonpayment, the facility must inform the resident that public benefits may be available and 
230.9 	must provide contact information for the Senior LinkAge Line under section 256.975, 
230.10 	subdivision 7, or the Disability Hub under section 256.01, subdivision 24.
230.11 	(b) An interruption to a resident's public benefits that lasts for no more than 60 days 
230.12 	does not constitute nonpayment.

230.13 	Sec. 9. Minnesota Statutes 2024, section 144G.52, subdivision 5, is amended to read:
230.14 		Subd. 5.Expedited termination. (a) A facility may initiate an expedited termination 
230.15 	of housing or services an assisted living contract, including both the housing and assisted 
230.16 	living services provided thereunder, or of assisted living services if:
230.17 	(1) the resident has engaged in conduct that substantially interferes with the rights, health, 
230.18 	or safety of other residents;
230.19 	(2) the resident has engaged in conduct that substantially and intentionally interferes 
230.20 	with the safety or physical health of facility staff; or
230.21 	(3) the resident has committed an act listed in section 504B.171 that substantially 
230.22 	interferes with the rights, health, or safety of other residents.;
230.23 	(b) A facility may initiate an expedited termination of services if:
230.24 	(1) the resident has engaged in conduct that substantially interferes with the resident's 
230.25 	health or safety;
230.26 	(2) (4) the resident's assessed needs exceed the scope of services agreed upon in the 
230.27 	assisted living contract and are not included in the services the facility disclosed in the 
230.28 	uniform checklist; or
230.29 	(3) (5) extraordinary circumstances exist, causing the facility to be unable to provide 
230.30 	the resident with the services disclosed in the uniform checklist that are necessary to meet 
230.31 	the resident's needs.

231.1 	Sec. 10. Minnesota Statutes 2024, section 144G.52, subdivision 7, is amended to read:
231.2 		Subd. 7.Notice of contract termination required. (a) A facility terminating a contract 
231.3 	must issue a written notice of termination according to this section. The facility must also 
231.4 	send a copy of the termination notice to the Office of Ombudsman for Long-Term Care 
231.5 	and, for residents who receive home and community-based waiver services under chapter 
231.6 	256S and section 256B.49, to the resident's case manager, as soon as practicable after 
231.7 	providing notice to the resident. A facility may terminate an assisted living contract only 
231.8 	as permitted under subdivisions 3, 4, and 5.
231.9 	(b) A facility terminating a contract under subdivision 3 or 4 must provide a written 
231.10 	termination notice at least 30 days before the effective date of the termination to the resident, 
231.11 	legal representative, and designated representative.
231.12 	(c) A facility terminating a contract under subdivision 5 must provide a written 
231.13 	termination notice at least 15 seven days before the effective date of the termination to the 
231.14 	resident, legal representative, and designated representative.
231.15 	(d) If a resident moves out of a facility or cancels services received from the facility, 
231.16 	nothing in this section prohibits a facility from enforcing against the resident any notice 
231.17 	periods with which the resident must comply under the assisted living contract.

231.18 	Sec. 11. Minnesota Statutes 2024, section 144G.52, subdivision 8, is amended to read:
231.19 		Subd. 8.Content of notice of termination. The notice required under subdivision 7 
231.20 	must contain, at a minimum:
231.21 	(1) the effective date of the termination of the assisted living contract;
231.22 	(2) a detailed explanation of the basis for the termination, including the clinical or other 
231.23 	supporting rationale;
231.24 	(3) a detailed explanation of the conditions under which a new or amended contract may 
231.25 	be executed;
231.26 	(4) a statement that the resident has the right to appeal the termination by requesting a 
231.27 	hearing, and information concerning the time frame within which the request must be 
231.28 	submitted and the contact information for the agency to which the request must be submitted;
231.29 	(5) a statement that the facility must participate in a coordinated move to another provider 
231.30 	or caregiver, as required under section 144G.55;
231.31 	(6) the name and contact information of the person employed by the facility with whom 
231.32 	the resident may discuss the notice of termination;
232.1 	(7) information on how to contact the Office of Ombudsman for Long-Term Care and 
232.2 	the Office of Ombudsman for Mental Health and Developmental Disabilities to request an 
232.3 	advocate to assist regarding the termination;
232.4 	(8) information on how to contact the Senior LinkAge Line under section 256.975, 
232.5 	subdivision 7, or the Disability Hub under section 256.01, subdivision 24, and an explanation 
232.6 	that the Senior LinkAge Line and the Disability Hub may provide information about other 
232.7 	available housing or service options; and
232.8 	(9) if the termination is only for services, a statement that the resident may remain in 
232.9 	the facility and may secure any necessary services from another provider of the resident's 
232.10 	choosing.

232.11 	Sec. 12. Minnesota Statutes 2024, section 144G.52, subdivision 9, is amended to read:
232.12 		Subd. 9.Emergency relocation. (a) A facility may remove a resident from the facility 
232.13 	in an emergency if necessary due to a resident's urgent medical needs or an imminent risk 
232.14 	the resident poses to the health or safety of another facility resident or facility staff member. 
232.15 	An emergency relocation is not a termination. An emergency relocation does not occur 
232.16 	when a resident or the resident's representative requests or consents to be transported to the 
232.17 	emergency room or hospital regardless of whether the facility initiates communications 
232.18 	regarding the need to relocate the resident.
232.19 	(b) In the event of an emergency relocation, the facility must provide a written notice 
232.20 	that contains, at a minimum:
232.21 	(1) the reason for the relocation;
232.22 	(2) the name and contact information for the location to which the resident has been 
232.23 	relocated and any new service provider;
232.24 	(3) contact information for the Office of Ombudsman for Long-Term Care and the Office 
232.25 	of Ombudsman for Mental Health and Developmental Disabilities;
232.26 	(4) if known and applicable, the approximate date or range of dates within which the 
232.27 	resident is expected to return to the facility, or a statement that a return date is not currently 
232.28 	known; and
232.29 	(5) a statement that, if the facility refuses to provide housing or services after a relocation, 
232.30 	the resident has the right to appeal under section 144G.54. The facility must provide contact 
232.31 	information for the agency to which the resident may submit an appeal.
232.32 	(c) The notice required under paragraph (b) must be delivered as soon as practicable to:
233.1 	(1) the resident, legal representative, and designated representative;
233.2 	(2) for residents who receive home and community-based waiver services under chapter 
233.3 	256S and section 256B.49, the resident's case manager; and
233.4 	(3) the Office of Ombudsman for Long-Term Care if the resident has been relocated 
233.5 	and has not returned to the facility within four days.
233.6 	(d) Following an emergency relocation, a facility's refusal to provide housing or services 
233.7 	constitutes a termination and triggers the termination process in this section.
233.8 	(e) In the event of an emergency relocation during which a resident is removed by law 
233.9 	enforcement, ambulance personnel, or other first responders, the notice required under 
233.10 	paragraph (b) may be provided retroactively but in no event no more than 72 hours after 
233.11 	the emergency relocation.

233.12 	Sec. 13. Minnesota Statutes 2024, section 144G.52, subdivision 10, is amended to read:
233.13 		Subd. 10.Right to return. (a) If a resident is absent from a facility for any reason, 
233.14 	including an emergency relocation, the facility shall not refuse to allow a resident to return 
233.15 	if a termination of housing the assisted living contract has not been effectuated.
233.16 	(b) Notwithstanding paragraph (a), a facility may refuse to allow a resident to return if:
233.17 	(1) another resident or employee of the facility has obtained a harassment restraining 
233.18 	order, order for protection, or similar court order seeking to protect them from the resident; 
233.19 	or
233.20 	(2) the resident has been charged with a crime where the alleged victim is another resident 
233.21 	or employee of the facility.

233.22 	Sec. 14. Minnesota Statutes 2024, section 144G.53, is amended to read:
233.23 	144G.53 NONRENEWAL OF HOUSING ASSISTED LIVING CONTRACT 
233.24 	NONRENEWAL.
233.25 	(a) If a facility decides to not renew a resident's housing under a contract assisted living 
233.26 	contract, including both the housing and assisted living services provided thereunder, the 
233.27 	facility must either (1) provide the resident with 60 calendar days' notice of the nonrenewal 
233.28 	and assistance with relocation planning, or (2) follow the termination procedure under 
233.29 	section 144G.52. A facility may not decline to renew only the assisted living services 
233.30 	provided to a resident under the resident's assisted living contract.
234.1 	(b) The notice must include the reason for the nonrenewal and contact information of 
234.2 	the Office of Ombudsman for Long-Term Care and the Office of Ombudsman for Mental 
234.3 	Health and Developmental Disabilities.
234.4 	(c) A facility must:
234.5 	(1) provide notice of the nonrenewal to the Office of Ombudsman for Long-Term Care;
234.6 	(2) for residents who receive home and community-based waiver services under chapter 
234.7 	256S and section 256B.49, provide notice to the resident's case manager;
234.8 	(3) ensure a coordinated move to a safe location, as defined in section 144G.55, 
234.9 	subdivision 2, that is appropriate for the resident;
234.10 	(4) ensure a coordinated move to an appropriate service provider identified by the facility, 
234.11 	if services are still needed and desired by the resident;
234.12 	(5) consult and cooperate with the resident, legal representative, designated representative, 
234.13 	case manager for a resident who receives home and community-based waiver services under 
234.14 	chapter 256S and section 256B.49, relevant health professionals, and any other persons of 
234.15 	the resident's choosing to make arrangements to move the resident, including consideration 
234.16 	of the resident's goals; and
234.17 	(6) prepare a written plan to prepare for the move.
234.18 	(d) A resident may decline to move to the location the facility identifies or to accept 
234.19 	services from a service provider the facility identifies, and may instead choose to move to 
234.20 	a location of the resident's choosing or receive services from a service provider of the 
234.21 	resident's choosing within the timeline prescribed in the nonrenewal notice.

234.22 	Sec. 15. Minnesota Statutes 2024, section 144G.54, subdivision 2, is amended to read:
234.23 		Subd. 2.Permissible grounds to appeal termination. (a) A resident may appeal a 
234.24 	termination initiated under section 144G.52, subdivision 3, 4, or 5, on the ground that:
234.25 	(1) there is a factual dispute as to whether the facility had a permissible basis to initiate 
234.26 	the termination;
234.27 	(2) the termination would result in great harm or the potential for great harm to the 
234.28 	resident as determined by the totality of the circumstances, except in circumstances where 
234.29 	there is a greater risk of harm to other residents or staff at the facility;
235.1 	(3) the resident has cured or demonstrated the ability to cure the reasons for the 
235.2 	termination, or has identified a reasonable accommodation or modification, intervention, 
235.3 	or alternative to the termination; or
235.4 	(4) the facility has terminated the contract in violation of state or federal law.
235.5 	(b) When submitting an appeal, a resident must specify which permissible grounds under 
235.6 	paragraph (a) are grounds for the appeal.
235.7 	(c) The resident or resident's representative must provide the facility a copy of all appeals 
235.8 	within three calendar days of filing them.
235.9 	(d) When a facility used good faith efforts to substantially comply with the content or 
235.10 	timing requirements of section 144G.52, subdivision 8, or corresponding rules, and the 
235.11 	noncompliance did not prejudice the resident, a failure to comply does not invalidate the 
235.12 	termination process and is not permissible grounds for appeal of a termination.

235.13 	Sec. 16. Minnesota Statutes 2024, section 144G.54, subdivision 3, is amended to read:
235.14 		Subd. 3.Appeals process. (a) The Office of Administrative Hearings must conduct an 
235.15 	expedited hearing as soon as practicable under this section, but in no event later than 14 
235.16 	calendar days after the office receives the request, unless the parties agree otherwise or the 
235.17 	chief administrative law judge deems the timing to be unreasonable, given the complexity 
235.18 	of the issues presented. For terminations initiated pursuant to section 144G.52, subdivision 
235.19 	5, the Office of Administrative Hearings must conduct an expedited hearing as soon as 
235.20 	practicable but in no event later than seven calendar days after the office receives the request.
235.21 	(b) The hearing must be held at the facility where the resident lives, unless holding the 
235.22 	hearing at that location is impractical, the parties agree to hold the hearing at a different 
235.23 	location, or the chief administrative law judge grants a party's request to appear at another 
235.24 	location or by telephone or interactive video.
235.25 	(c) The hearing is not a formal contested case proceeding, except when determined 
235.26 	necessary by the chief administrative law judge.
235.27 	(d) Parties may but are not required to be represented by counsel. The appearance of a 
235.28 	party without counsel does not constitute the unauthorized practice of law.
235.29 	(e) Parties may provide the administrative law judge relevant evidence in the form of 
235.30 	in-person or sworn written testimony, including that of other residents of the facility, 
235.31 	representatives of other residents of the facility, facility staff, or individuals representing 
235.32 	the interests of other residents of the facility.
236.1 	(f) The hearing shall be limited to the amount of time necessary for the participants to 
236.2 	expeditiously present the facts about the proposed termination. The administrative law judge 
236.3 	shall issue a recommendation to the commissioner as soon as practicable, but in no event 
236.4 	later than ten business days after the hearing related to a termination issued under section 
236.5 	144G.52, subdivision 3 or 4, or five business days for a hearing related to a termination 
236.6 	issued under section 144G.52, subdivision 5.

236.7 	Sec. 17. Minnesota Statutes 2024, section 144G.54, subdivision 7, is amended to read:
236.8 		Subd. 7.Application of chapter 504B to appeals of terminations. A resident may not 
236.9 	bring an action under chapter 504B to challenge a termination that has occurred and been 
236.10 	upheld under this section for which an appeal under this section was not requested or for 
236.11 	which an appeal under this section was requested, but the termination was upheld in 
236.12 	accordance with this section. If a facility prevails in a challenged termination under this 
236.13 	section, the facility is entitled to a writ of recovery and order to vacate pursuant to section 
236.14 	504B.361.

236.15 	Sec. 18. Minnesota Statutes 2024, section 144G.55, subdivision 1, is amended to read:
236.16 		Subdivision 1.Duties of facility. (a) If a facility terminates an assisted living contract, 
236.17 	reduces services to the extent that a resident needs to move or obtain a new service provider 
236.18 	or the facility has its license restricted under section 144G.20, or the facility conducts a 
236.19 	planned closure under section 144G.57, the facility:
236.20 	(1) must ensure, subject to paragraph (c), a coordinated move to a safe location that is 
236.21 	appropriate for the resident and that is identified by the facility prior to any hearing under 
236.22 	section 144G.54;
236.23 	(2) must ensure a coordinated move of the resident to an appropriate service provider 
236.24 	identified by the facility prior to any hearing under section 144G.54, provided services are 
236.25 	still needed and desired by the resident; and
236.26 	(3) must consult and cooperate with the resident, legal representative, designated 
236.27 	representative, case manager for a resident who receives home and community-based waiver 
236.28 	services under chapter 256S and section 256B.49, relevant health professionals, and any 
236.29 	other persons of the resident's choosing to make arrangements to move the resident, including 
236.30 	consideration of the resident's goals.
237.1 	(b) A facility may satisfy the requirements of paragraph (a), clauses (1) and (2), by 
237.2 	moving the resident to a different location within the same facility, if appropriate for the 
237.3 	resident.
237.4 	(c) A resident may decline to move to the location the facility identifies or to accept 
237.5 	services from a service provider the facility identifies, and may choose instead to move to 
237.6 	a location of the resident's choosing or receive services from a service provider of the 
237.7 	resident's choosing within the timeline prescribed in the termination notice.
237.8 	(d) A facility has met its obligations under this section, following a termination completed 
237.9 	in accordance with section 144G.52 if:
237.10 	(1) for residents receiving services under the home and community-based waiver services 
237.11 	for the elderly under chapter 256S, waivered services under community access for disability 
237.12 	inclusion waiver under section 256B.49, or the brain injury waivered services under section 
237.13 	256B.49, the resident or the resident's designated representative reject two or more options 
237.14 	presented by the lead agency or the resident's waiver case manager; or
237.15 	(2) for all other residents, the resident or the resident's designated representative reject 
237.16 	two or more other facilities that are able to meet the individual's service needs, have an 
237.17 	immediate opening, and are located within a reasonable geographic proximity. The absence 
237.18 	of nearby facilities able to meet the individual's service needs and with immediate openings 
237.19 	may increase what may be considered a reasonable geographic proximity.
237.20 	(e) Sixty days before the facility plans to reduce or eliminate one or more services for 
237.21 	a particular resident, the facility must provide written notice of the reduction that includes:
237.22 	(1) a detailed explanation of the reasons for the reduction and the date of the reduction;
237.23 	(2) the contact information for the Office of Ombudsman for Long-Term Care, the Office 
237.24 	of Ombudsman for Mental Health and Developmental Disabilities, and the name and contact 
237.25 	information of the person employed by the facility with whom the resident may discuss the 
237.26 	reduction of services;
237.27 	(3) a statement that if the services being reduced are still needed by the resident, the 
237.28 	resident may remain in the facility and seek services from another provider; and
237.29 	(4) a statement that if the reduction makes the resident need to move, the facility must 
237.30 	participate in a coordinated move of the resident to another provider or caregiver, as required 
237.31 	under this section.
238.1 	(e) (f) In the event of an unanticipated reduction in services caused by extraordinary 
238.2 	circumstances, the facility must provide the notice required under paragraph (d) (e) as soon 
238.3 	as possible.
238.4 	(f) (g) If the facility, a resident, a legal representative, or a designated representative 
238.5 	determines that a reduction in services will make a resident need to move to a new location, 
238.6 	the facility must ensure a coordinated move in accordance with this section, and must provide 
238.7 	notice to the Office of Ombudsman for Long-Term Care.
238.8 	(g) (h) Nothing in this section affects a resident's right to remain in the facility and seek 
238.9 	services from another provider.

238.10 	Sec. 19. Minnesota Statutes 2024, section 144G.55, subdivision 2, is amended to read:
238.11 		Subd. 2.Safe location. A safe location is not a private home where the occupant is 
238.12 	unwilling or unable to care for the resident, a homeless shelter, a hotel, or a motel. A facility 
238.13 	may not terminate a resident's housing or services if the resident will, as the result of the 
238.14 	termination, become homeless, as that term is defined in section 116L.361, subdivision 5, 
238.15 	or if an adequate and safe discharge location or adequate and needed service provider has 
238.16 	not been identified, unless the resident declines to move to the identified safe location or 
238.17 	needed service provider or chooses to become homeless. This subdivision does not preclude 
238.18 	a resident from declining to move to the location the facility identifies.

238.19 	Sec. 20. [145D.40] DEFINITIONS.
238.20 		Subdivision 1.Application. For purposes of sections 145D.40 to 145D.41, the following 
238.21 	terms have the meanings given.
238.22 		Subd. 2.Assisted living facility. "Assisted living facility" has the meaning given in 
238.23 	section 144G.08, subdivision 7. Assisted living facility includes an assisted living facility 
238.24 	with dementia care as defined in section 144G.08, subdivision 8.
238.25 		Subd. 3.Health care professional. "Health care professional" means an individual who 
238.26 	is licensed or registered by the state to provide health care services within the professional's 
238.27 	scope of practice and in accordance with state law.
238.28 		Subd. 4.Nursing home. "Nursing home" means a facility licensed as a nursing home 
238.29 	under chapter 144A.
238.30 		Subd. 5.Ownership or control. "Ownership or control" means the assumption of 
238.31 	governance or the acquisition of an ownership interest or direct or indirect control by a 
238.32 	for-profit entity over the operations of a nonprofit nursing home or a nonprofit assisted 
239.1 	living facility through any means, including but not limited to a purchase, lease, transfer, 
239.2 	exchange, option, conveyance, creation of a joint venture, or other manner of acquisition 
239.3 	of assets, governance, an ownership interest, or direct or indirect control of a nonprofit 
239.4 	nursing home or a nonprofit assisted living facility.

239.5 	Sec. 21. [145D.41] NOTICE, INFORMATION, AND AFFIDAVIT REQUIRED.
239.6 		Subdivision 1.Notice and information. (a) At least 120 days prior to the transfer of 
239.7 	ownership or control of a nonprofit nursing home or nonprofit assisted living facility to a 
239.8 	for-profit entity, the nursing home or assisted living facility must provide written notice to 
239.9 	the attorney general, the commissioner of health, and the commissioner of human services 
239.10 	of its intent to transfer ownership or control to a for-profit entity.
239.11 	(b) Together with the notice, the for-profit entity seeking to acquire ownership or control 
239.12 	of the nonprofit nursing home or nonprofit assisted living facility must provide the following 
239.13 	information to the attorney general, commissioner of health, and commissioner of human 
239.14 	services:
239.15 	(1) the names of each individual with an interest in the for-profit entity and the percentage 
239.16 	of interest each individual holds in the for-profit entity;
239.17 	(2) a complete and detailed description of the for-profit entity's corporate structure;
239.18 	(3) the names of each individual holding an interest in, and the percentage of interest 
239.19 	held in, any affiliate, subsidiary, or otherwise related entity that the for-profit entity has a 
239.20 	contract to provide goods or services for the operation or maintenance of the nursing home 
239.21 	or assisted living facility or has a contract for goods and services to be provided to residents, 
239.22 	including any real estate investment trusts;
239.23 	(4) for the previous five years, any filings required to be made to any federal or state 
239.24 	agency;
239.25 	(5) the for-profit entity's current balance sheet;
239.26 	(6) all application materials required under section 144A.03 or 144G.12, as applicable;
239.27 	(7) a description of the condition of the buildings the for-profit entity seeks to acquire 
239.28 	or manage, identifying any cooling problems, electric medical devices present, recent exterior 
239.29 	additions and replacements, external building conditions, recent flush toilet breakdowns, 
239.30 	foreclosure status in the last 12 months, heat risk, heating problems, indoor air quality, 
239.31 	recent interior additions and replacements, and mold, as those terms are defined and described 
239.32 	in Appendix A of the American Housing Survey for the United States: 2023;
240.1 	(8) an affidavit and evidence as required under subdivision 2; and
240.2 	(9) other information required by the attorney general, commissioner of health, and 
240.3 	commissioner of human services.
240.4 		Subd. 2.Affidavit and evidence. In addition to the notice required under subdivision 
240.5 	1, a for-profit entity seeking to acquire ownership or control of a nonprofit nursing home 
240.6 	or nonprofit assisted living facility must submit to the attorney general an affidavit and 
240.7 	evidence sufficient to demonstrate that:
240.8 	(1) the for-profit entity has the financial, managerial, and operational ability to operate 
240.9 	or manage the nursing home or assisted living facility consistent with the requirements of 
240.10 	(i) for a nursing home, sections 144A.01 to 144A.1888, chapter 256R, and Minnesota Rules, 
240.11 	chapter 4658; or (ii) for an assisted living facility, chapter 144G and Minnesota Rules, 
240.12 	chapter 4659;
240.13 	(2) neither the for-profit entity nor any of its owners, managerial officials, or managers 
240.14 	have committed a crime listed in, or been found civilly liable for an offense listed in section 
240.15 	144A.03, subdivision 1, clause (13), or 144G.12, subdivision 1, clause (13), as applicable;
240.16 	(3) in the preceding ten years, there have been no judgments and no filed, pending, or 
240.17 	completed public or private litigations, tax liens, written complaints, administrative actions, 
240.18 	or investigations by a government agency against the for-profit entity or any of its owners, 
240.19 	managerial officials, or managers;
240.20 	(4) in the preceding ten years, the for-profit entity has not defaulted in the payment of 
240.21 	money collected for others and has not discharged debts through bankruptcy proceedings;
240.22 	(5) the for-profit entity will invest sufficient capital in the nursing home or assisted living 
240.23 	facility to maintain or improve the facility's infrastructure and staffing;
240.24 	(6)(i) housing costs or costs for services in a nursing home or assisted living facility in 
240.25 	the United States over which the for-profit entity acquired ownership or control have not 
240.26 	increased by more than the increase in the Consumer Price Index for all urban consumers 
240.27 	published by the federal Bureau of Labor Statistics for the 12 months preceding the month 
240.28 	in which the increase became effective; or (ii) if housing costs or costs for services in the 
240.29 	nursing home or assisted living facility increased by more than the increase in the Consumer 
240.30 	Price Index as described in item (i), the increase was justified;
240.31 	(7) within five years after acquiring ownership or control of any other nursing home or 
240.32 	assisted living facility in the United States, the for-profit entity did not sell or otherwise 
241.1 	transfer ownership or control of the nursing home or assisted living facility to another person; 
241.2 	and
241.3 	(8) after acquiring ownership or control of another nursing home in the United States, 
241.4 	that nursing home, with respect to the Centers for Medicare and Medicaid Services rating 
241.5 	system:
241.6 	(i) maintained or improved the nursing home's rating if upon acquisition of ownership 
241.7 	or control the rating was three or more stars; or
241.8 	(ii) improved the nursing home's rating to at least three stars if upon acquisition of 
241.9 	ownership or control the rating was one or two stars.

241.10 	Sec. 22. DIRECTION TO COMMISSIONER; COMPLIANCE COSTS AND 
241.11 	REIMBURSEMENT RATES.
 241.12 	(a) The commissioner of human services and the commissioner of health must convene 
241.13 	a group of interested parties to examine the relationship between the costs incurred to comply 
241.14 	with the licensing requirements under Minnesota Statutes, chapter 144G, and reimbursement 
241.15 	rates for providing customized living services under Minnesota Statutes, chapter 256S, and 
241.16 	section 256B.4914, subdivision 6d. The commissioners must include among the interested 
241.17 	parties the Long-Term Care Imperative, the Residential Providers Association of Minnesota, 
241.18 	the Minnesota Association of County Social Service Administrators, and people with 
241.19 	disabilities currently receiving customized living services under the federally approved 
241.20 	brain injury, community access for disability inclusion, and elderly waiver plans.
241.21 	(b) The commissioners of human services and health must develop draft legislative 
241.22 	language to better align the licensing requirements and reimbursement framework so that 
241.23 	the costs incurred to comply with licensing requirements and fees are adequately reimbursed 
241.24 	through the rates paid for providing customized living services.
241.25 	(c) The commissioners must submit the draft legislation to the chairs and ranking minority 
241.26 	members of the legislative committees with jurisdiction over health and human services 
241.27 	policy and finance by January 1, 2027.

241.28 	Sec. 23. DIRECTION TO THE COMMISSIONER OF HEALTH; COMMUNITY 
241.29 	CARE HUB GRANT.
 241.30 		Subdivision 1.Establishment. The commissioner of health shall establish a single grant 
241.31 	to expand and strengthen the community care hub model in Minnesota by organizing and 
242.1 	supporting a network of health and social care service providers to address health-related 
242.2 	social needs.
242.3 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
242.4 	meanings given.
242.5 	(b) "Community-based organization" means a public or private nonprofit organization 
242.6 	of demonstrated effectiveness that is representative of a community or significant segments 
242.7 	of a community and provides services that address the social drivers of health, education, 
242.8 	or related services to individuals in the community.
242.9 	(c) "Community care hub" means a nonprofit organization that provides a centralized 
242.10 	administrative and operational interface between health care institutions and a network of 
242.11 	community-based organizations that provide health promotion and social care services.
242.12 	(d) "Health-related social needs" means the individual-level, adverse social conditions 
242.13 	that can negatively impact a person's health or health care, such as poor health literacy, food 
242.14 	insecurity, housing instability, and lack of access to transportation.
242.15 	(e) "Social care services" means culturally informed services to address health-related 
242.16 	social needs and community-informed health promotion programs.
242.17 		Subd. 3.Eligible applicants. To be eligible for the single grant available under this 
242.18 	section, a grant applicant must:
242.19 	(1) be recognized as a selected community care hub by the federal Administration for 
242.20 	Community Living and the Centers for Disease Control and Prevention;
242.21 	(2) be the recipient of the community care hub planning grant under Laws 2024, chapter 
242.22 	127, article 53, section 3, subdivision 2, paragraph (a);
242.23 	(3) hold contracts with health plans within Minnesota that allow the applicant to provide 
242.24 	social care services to a plan's covered member population; and
242.25 	(4) demonstrate active engagement in providing, coordinating, and aiding health care 
242.26 	and social care services at the community level.
242.27 		Subd. 4.Eligible uses. The grantee must use awarded money to:
242.28 	(1) engage and organize community-based organizations to deliver social care services;
242.29 	(2) expand the reach and scope of social care services;
242.30 	(3) centralize administrative functions and operational infrastructure of community care 
242.31 	hubs related to:
243.1 	(i) contracting with health care organizations;
243.2 	(ii) payment operations;
243.3 	(iii) management of referrals, including reporting on the outcome of the services and 
243.4 	the specific help provided;
243.5 	(iv) service delivery fidelity and compliance;
243.6 	(v) quality improvement;
243.7 	(vi) technology;
243.8 	(vii) information security; and
243.9 	(viii) data collection, data analysis, and reporting;
243.10 	(4) create sustainable financial pathways for services that address health-related social 
243.11 	needs throughout the state of Minnesota; and
243.12 	(5) support tracking of the financial pathways and the services provided.
243.13 		Subd. 5.Grantee report. The grantee must report community care hub initiative 
243.14 	outcomes as determined by the commissioner of health to the commissioner on the forms 
243.15 	and according to the timelines established by the commissioner.
243.16 		Subd. 6.Evaluation. The commissioner of health shall design, conduct, and evaluate 
243.17 	the community care hub initiative implemented by the grantee using measures to assess 
243.18 	cost savings, impact, and health impact outcomes.

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

243.20 	ARTICLE 10
243.21 	MISCELLANEOUS

243.22 	Section 1. Laws 2023, chapter 61, article 1, section 61, subdivision 4, is amended to read:
243.23 		Subd. 4.Evaluation and report. By December 1, 2024, the commissioner must submit 
243.24 	to the chairs and ranking minority members of the legislative committees with jurisdiction 
243.25 	over human services finance and policy an interim report on the impact and outcomes of 
243.26 	the grants, including the number of grants awarded and the organizations receiving the 
243.27 	grants. The interim report must include any available evidence of how grantees were able 
243.28 	to increase utilization of supported decision making and reduce or avoid more restrictive 
243.29 	forms of decision making such as guardianship and conservatorship. By December 1, 2025
243.30 	2026, the commissioner must submit to the chairs and ranking minority members of the 
244.1 	legislative committees with jurisdiction over human services finance and policy a final 
244.2 	report on the impact and outcomes of the grants, including any updated information from 
244.3 	the interim report and the total number of people served by the grants. The final report must 
244.4 	also detail how the money was used to achieve the requirements in subdivision 3, paragraph 
244.5 	(b).

244.6 	Sec. 2. Laws 2024, chapter 127, article 49, section 9, subdivision 1, is amended to read:
244.7 		Subdivision 1.Establishment; purpose. The Mentally Ill and Dangerous Civil 
244.8 	Commitment Reform Task Force is established to:
244.9 	(1) evaluate current statutes related to mentally ill and dangerous civil commitments 
244.10 	and;
244.11 	(2) evaluate current statutes related to the process by which a former patient may seek 
244.12 	an order to expunge or vacate a prior commitment as mentally ill and dangerous; and
244.13 	(3) develop recommendations to optimize the use of state-operated mental health 
244.14 	resources and increase equitable access and outcomes for patients.

244.15 	Sec. 3. Laws 2024, chapter 127, article 49, section 9, is amended by adding a subdivision 
244.16 	to read:
244.17 		Subd. 7a.Duties; expungements and vacaturs. The task force must:
244.18 	(1) analyze current trends in civil commitments as mentally ill and dangerous, 
244.19 	expungements, and vacaturs, including but not limited to the frequency of expungements 
244.20 	and vacaturs in Minnesota as compared to other jurisdictions;
244.21 	(2) review national practices and criteria for expunging and vacating civil commitments 
244.22 	as mentally ill and dangerous;
244.23 	(3) develop recommended statutory changes necessary to provide clear direction to 
244.24 	former patients who are seeking to file a motion to expunge or vacate a civil commitment 
244.25 	as mentally ill and dangerous;
244.26 	(4) develop recommended statutory changes necessary to provide clear direction, criteria 
244.27 	to apply, and evidentiary standards to the courts when considering a motion from a former 
244.28 	patient to expunge or vacate a civil commitment as mentally ill and dangerous; and
244.29 	(5) develop recommended statutory changes to provide clear direction to former patients 
244.30 	and the courts to address situations in which an individual is civilly committed as mentally 
245.1 	ill and dangerous and is later determined to not have an organic disorder of the brain or a 
245.2 	substantial psychiatric disorder of thought, mood, perception, orientation, or memory.

245.3 	Sec. 4. Laws 2024, chapter 127, article 49, section 9, subdivision 8, is amended to read:
245.4 		Subd. 8.Report required. (a) By August 1, 2025, the task force shall submit to the 
245.5 	chairs and ranking minority members of the legislative committees with jurisdiction over 
245.6 	mentally ill and dangerous civil commitments a written report that includes the outcome of 
245.7 	the duties in subdivision 7, including but not limited to recommended statutory changes.
245.8 	(b) By August 1, 2026, the task force shall submit to the chairs and ranking minority 
245.9 	members of the legislative committees with jurisdiction over civil commitments a written 
245.10 	report that includes the outcome of the duties in subdivision 7a, including but not limited 
245.11 	to recommended statutory changes.

245.12 	Sec. 5. Laws 2024, chapter 127, article 49, section 9, subdivision 9, is amended to read:
245.13 		Subd. 9.Expiration. The task force expires January 1, 2026 2027.

245.14 	ARTICLE 11
245.15 	DEPARTMENT OF HUMAN SERVICES APPROPRIATIONS

245.16	Section 1. HUMAN SERVICES APPROPRIATIONS.
 	
245.17 	The sums shown in the columns marked "Appropriations" are appropriated to the 
245.18 	commissioner of human services and for the purposes specified in this article. The 
245.19 	appropriations are from the general fund, or another named fund, and are available for the 
245.20 	fiscal years indicated for each purpose. The figures "2026" and "2027" used in this article 
245.21 	mean that the appropriations listed under them are available for the fiscal year ending June 
245.22 	30, 2026, or June 30, 2027, respectively. "The first year" is fiscal year 2026. "The second 
245.23 	year" is fiscal year 2027. "The biennium" is fiscal years 2026 and 2027.

245.24				APPROPRIATIONS
	
245.25				Available for the Year
	
245.26				Ending June 30
	
245.27					2026
		2027

245.28	Sec. 2. TOTAL APPROPRIATION
	$
	7,764,972,000
	$
	7,919,683,000

245.29	Subdivision 1.Appropriations by Fund

245.30	Appropriations by Fund
	
245.31		2026
	2027
	
245.32	General
	7,763,011,000
	7,917,494,000
	
246.1	Lottery Prize
	1,733,000
	1,733,000
	
246.2
246.3
246.4	State Government 
Special Revenue 
Fund
	228,000
	456,000
	
246.5 	The amounts that may be spent for each 
246.6 	purpose are specified in the following sections 
246.7 	and subdivisions.

246.8	Subd. 2.Information Technology Appropriations
 					
246.9 	(a) IT Appropriations Generally
246.10 	This appropriation includes money for 
246.11 	information technology projects, services, and 
246.12 	support. Funding for information technology 
246.13 	project costs must be incorporated into the 
246.14 	service-level agreement and paid to Minnesota 
246.15 	IT Services by the Department of Human 
246.16 	Services under the rates and mechanism 
246.17 	specified in that agreement.
246.18 	(b) Receipts for Systems Project
246.19 	Appropriations and federal receipts for 
246.20 	information technology systems projects for 
246.21 	MMIS and METS must be deposited in the 
246.22 	state systems account authorized in Minnesota 
246.23 	Statutes, section 256.014. Money appropriated 
246.24 	for information technology projects approved 
246.25 	by the commissioner of Minnesota IT 
246.26 	Services, funded by the legislature, and 
246.27 	approved by the commissioner of management 
246.28 	and budget may be transferred from one 
246.29 	project to another and from development to 
246.30 	operations as the commissioner of human 
246.31 	services deems necessary. Any unexpended 
246.32 	balance in the appropriation for these projects 
246.33 	does not cancel and is available for ongoing 
246.34 	development and operations.

246.35	Sec. 3. CENTRAL OFFICE; OPERATIONS
 	$
	4,309,000
	$
	5,281,000

247.1	Subdivision 1.Budget and Legislative Staff
 					
247.2 	$805,000 in fiscal year 2026 and $955,000 in 
247.3 	fiscal year 2027 are for five additional 
247.4 	full-time budget and legislative staff.

247.5	Subd. 2.Base Level Adjustment
 					
247.6 	The general fund base for this section is 
247.7 	$3,536,000 in fiscal year 2028 and $3,352,000 
247.8 	in fiscal year 2029.

247.9	Sec. 4. CENTRAL OFFICE; HEALTH CARE
 	$
	279,000
	$
	448,000
	
247.10 	Single Administrative Structure and 
247.11 	Delivery System Pilot Program
247.12 	$102,000 in fiscal year 2026 and $204,000 in 
247.13 	fiscal year 2027 are for a contract to 
247.14 	implement a web-based single administrative 
247.15 	structure and delivery system for the delivery 
247.16 	of nonemergency medical transportation. The 
247.17 	base for this appropriation is $204,000 in fiscal 
247.18 	year 2028, $204,000 in fiscal year 2029, and 
247.19 	$0 in fiscal year 2030.

247.20
247.21	Sec. 5. CENTRAL OFFICE; AGING AND 
DISABILITY SERVICES
 	$
	5,513,000
	$
	3,245,000

247.22
247.23
247.24	Subdivision 1.Provisional or Transitional 
Approval of Integrated Community Services 
Settings
 					
247.25 	$150,000 in fiscal year 2026 is to develop 
247.26 	draft legislative language to improve the 
247.27 	process for approving integrated community 
247.28 	support settings. This is a onetime 
247.29 	appropriation.

247.30	Subd. 2.Positive Supports Competency Program
 					
247.31 	$1,000,000 in fiscal year 2026 is for the 
247.32 	positive supports competency program. This 
247.33 	is a onetime appropriation and is available 
247.34 	until June 30, 2029.

248.1
248.2	Subd. 3.Cost Reporting Improvement and Direct 
Care Staff Review
 					
248.3 	$150,000 in fiscal year 2026 is to complete a 
248.4 	cost reporting improvement study and direct 
248.5 	care staffing review. This is a onetime 
248.6 	appropriation.

248.7
248.8	Subd. 4.Assisted Living Licensure and Disability 
Waiver Rate Study And Draft Legislation
 					
248.9 	$100,000 in fiscal year 2026 is to complete a 
248.10 	study on assisted living licensure and disability 
248.11 	waiver reimbursement rates and to draft 
248.12 	proposed legislation. This is a onetime 
248.13 	appropriation.

248.14	Subd. 5.Budget and Legislative Analysis
 					
248.15 	$458,000 in fiscal year 2026 and $540,000 in 
248.16 	fiscal year 2027 are for three additional 
248.17 	full-time budget and legislative analysis staff.

248.18	Subd. 6.Base Level Adjustment
 					
248.19 	The general fund base for this section is 
248.20 	$3,219,000 in fiscal year 2028 and $3,219,000 
248.21 	in fiscal year 2029.

248.22
248.23	Sec. 6. CENTRAL OFFICE; BEHAVIORAL 
HEALTH
 	$
	(39,000)
	$
	12,000

248.24
248.25	Subdivision 1.Substance Use Disorder 
Treatment Staff Report and Recommendations
 					
248.26 	$100,000 in fiscal year 2026 and $50,000 in 
248.27 	fiscal year 2027 are for a substance use 
248.28 	disorder treatment staff report and 
248.29 	recommendations. This is a onetime 
248.30 	appropriation.

248.31	Subd. 2.Base Level Adjustment
 					
248.32 	The general fund base for this section is 
248.33 	reduced by $38,000 in fiscal year 2028 and 
248.34 	$38,000 in fiscal year 2029.

249.1
249.2	Sec. 7. CENTRAL OFFICE; OFFICE OF 
INSPECTOR GENERAL
 	$
	4,257,000
	$
	5,105,000

249.3	Subdivision 1.Appropriations by Fund

249.4	Appropriations by Fund
	
249.5		2026
	2027
	
249.6	General
	4,029,000
	4,649,000
	
249.7
249.8	State Government 
Special Revenue
	228,000
	456,000

249.9	Subd. 2.Base Level Adjustment
 					
249.10 	The general fund base for this section is 
249.11 	$4,648,000 in fiscal year 2028 and $4,648,000 
249.12 	in fiscal year 2029.

249.13
249.14	Sec. 8. FORECASTED PROGRAMS; 
HOUSING SUPPORT
 	$
	323,000
	$
	323,000

249.15
249.16	Sec. 9. FORECASTED PROGRAMS; 
MEDICAL ASSISTANCE
 	$
	7,440,131,000
	$
	7,656,740,000

249.17
249.18	Sec. 10. FORECASTED PROGRAMS; 
ALTERNATIVE CARE
 	$
	55,694,000
	$
	56,382,000
	
249.19 	Any money allocated to the alternative care 
249.20 	program that is not spent for the purposes 
249.21 	indicated does not cancel but must be 
249.22 	transferred to the medical assistance account.

249.23
249.24	Sec. 11. FORECASTED PROGRAMS; 
BEHAVIORAL HEALTH FUND
 	$
	138,575,000
	$
	118,318,000

249.25
249.26	Sec. 12. GRANT PROGRAMS; CHILD AND 
COMMUNITY SERVICE GRANTS
 	$
	(5,405,000)
	$
	(5,405,000)

249.27	Subdivision 1.Seeds Worth Sowing
 					
249.28 	$250,000 in fiscal year 2026 and $250,000 in 
249.29 	fiscal year 2027 are for a grant to Seeds Worth 
249.30 	Sowing to provide culturally specific supports 
249.31 	for African American Native and African 
249.32 	immigrant mothers, children, and families in 
249.33 	Minnesota. Money must be used to deliver 
249.34 	family-centered, community-based services 
249.35 	that promote early intervention, caregiver 
250.1 	support, health and developmental well-being, 
250.2 	and connection to home and community-based 
250.3 	services. Activities may include culturally 
250.4 	grounded parenting education, caregiver 
250.5 	training, peer support, and programs that 
250.6 	strengthen family stability, child development, 
250.7 	and community connectedness. Priority must 
250.8 	be given to programs serving families 
250.9 	impacted by poverty, disability, or systemic 
250.10 	barriers to care. The base for this appropriation 
250.11 	is $500,000 in fiscal year 2028 and $500,000 
250.12 	in fiscal year 2029.

250.13	Subd. 2.Base Level Adjustment
 					
250.14 	The general fund base for this section is 
250.15 	reduced by $5,155,000 in fiscal year 2028 and 
250.16 	$5,155,000 in fiscal year 2029.

250.17
250.18	Sec. 13. GRANT PROGRAMS; OTHER 
LONG-TERM CARE GRANTS
 	$
	3,197,000
	$
	1,925,000

250.19
250.20	Subdivision 1.Health Awareness Hub Pilot 
Project
 					
250.21 	$450,000 in fiscal year 2026 is for a payment 
250.22 	to the Organization for Liberians in Minnesota 
250.23 	for a health awareness hub pilot project. The 
250.24 	pilot project must seek to address health care 
250.25 	education and the physical and mental 
250.26 	wellness needs of elderly individuals within 
250.27 	the African immigrant community by offering 
250.28 	culturally relevant support, resources, and 
250.29 	preventive care education from medical 
250.30 	practitioners who have a similar background 
250.31 	and by making appropriate referrals to 
250.32 	culturally competent programs, supports, and 
250.33 	medical care. Within six months of the 
250.34 	conclusion of the pilot project, the 
250.35 	Organization for Liberians in Minnesota must 
251.1 	provide the commissioner with an evaluation 
251.2 	of the project as determined by the 
251.3 	commissioner. This is a onetime appropriation 
251.4 	and is available until June 30, 2027.

251.5
251.6	Subd. 2.Home and Community-Based Services 
Incentive Pool
 					
251.7 	$2,747,000 in fiscal year 2026 and $1,925,000 
251.8 	in fiscal year 2027 are for the home and 
251.9 	community-based services incentive pool 
251.10 	under Minnesota Statutes, section 256B.0921.

251.11
251.12	Sec. 14. GRANT PROGRAMS; AGING AND 
ADULT SERVICES GRANTS
 	$
	40,804,000
	$
	40,805,000

251.13	Subdivision 1.Age-Friendly Community Grants
 					
251.14 	The base for this appropriation for age-friendly 
251.15 	community grants under Minnesota Statutes, 
251.16 	section 256.9747, subdivision 1, is $882,000 
251.17 	in fiscal year 2028 and $882,000 in fiscal year 
251.18 	2029.

251.19
251.20	Subd. 2.Age-Friendly Technical Assistance 
Grants
 					
251.21 	The base for this appropriation for age-friendly 
251.22 	technical assistance grants under Minnesota 
251.23 	Statutes, section 256.9747, subdivision 2, is 
251.24 	$507,000 in fiscal year 2028 and $507,000 in 
251.25 	fiscal year 2029.

251.26	Subd. 3.Minnesota Board on Aging
 					
251.27 	$788,000 in fiscal year 2026 and $788,000 in 
251.28 	fiscal year 2027 are for the Minnesota Board 
251.29 	on Aging under Minnesota Statutes, section 
251.30 	256.975, to add additional staff positions for 
251.31 	the area agencies on aging contact centers to 
251.32 	support senior LinkAge Line operations.

252.1	Subd. 4.Senior Dining Program
 					
252.2 	$250,000 in fiscal year 2026 and $250,000 in 
252.3 	fiscal year 2027 are for a grant to Catholic 
252.4 	Charities of the Diocese of St. Cloud to 
252.5 	operate its senior dining program. The base 
252.6 	for this appropriation is $400,000 in fiscal year 
252.7 	2028 and $400,000 in fiscal year 2029.

252.8
252.9	Subd. 5.Long-Term Care Consultation Services 
Grants
 					
252.10 	$1,739,000 in fiscal year 2026 and $1,739,000 
252.11 	in fiscal year 2027 are for grants for long-term 
252.12 	care consultation services under Minnesota 
252.13 	Statutes, section 256B.0911, and long-term 
252.14 	care options counseling under Minnesota 
252.15 	Statutes, section 256.975, subdivision 7.

252.16	Subd. 6.Prescription Drug Assistance Program
 					
252.17 	$1,191,000 in fiscal year 2026 and $1,191,000 
252.18 	in fiscal year 2027 are for a grant to the Board 
252.19 	on Aging for the prescription drug assistance 
252.20 	program under Minnesota Statutes, section 
252.21 	256.975, subdivision 9.

252.22
252.23	Subd. 7.Core Home and Community-Based 
Service Projects
 					
252.24 	$1,585,000 in fiscal year 2026 and $1,585,000 
252.25 	in fiscal year 2027 are for core home and 
252.26 	community-based service projects under 
252.27 	Minnesota Statutes, section 256.9754, 
252.28 	subdivision 3d.

252.29
252.30	Subd. 8.Caregiver Support and Respite Care 
Projects
 					
252.31 	$479,000 in fiscal year 2026 and $479,000 in 
252.32 	fiscal year 2027 are for caregiver support and 
252.33 	respite care projects under Minnesota Statutes, 
252.34 	section 256.9754, subdivision 3c.

253.1
253.2	Subd. 9.Community Services Development 
Grants
 					
253.3 	$2,980,000 in fiscal year 2026 and $2,980,000 
253.4 	in fiscal year 2027 are for community services 
253.5 	development grants under Minnesota Statutes, 
253.6 	section 256.9754, subdivision 3.

253.7	Subd. 10.Community Service Grants
 					
253.8 	$3,128,000 in fiscal year 2026 and $3,128,000 
253.9 	in fiscal year 2027 are for community service 
253.10 	grants under Minnesota Statutes, section 
253.11 	256.9754, subdivision 3e.

253.12
253.13	Subd. 11.Customized Living Quality 
Improvement Grants
 					
253.14 	$1,000,000 in fiscal year 2026 and $1,000,000 
253.15 	in fiscal year 2027 are for customized living 
253.16 	quality improvement grants under Minnesota 
253.17 	Statutes, section 256.479.

253.18	Subd. 12.Regional and Local Dementia Grants
 					
253.19 	$1,000,000 in fiscal year 2026 and $1,000,000 
253.20 	in fiscal year 2027 are for regional and local 
253.21 	dementia grants under Minnesota Statutes, 
253.22 	section 256.975, subdivision 11. The base for 
253.23 	this appropriation is $1,500,000 in fiscal year 
253.24 	2028 and $1,500,000 in fiscal year 2029.

253.25	Subd. 13.Eldercare Development Partnerships
 					
253.26 	$1,758,000 in fiscal year 2026 and $1,758,000 
253.27 	in fiscal year 2027 are for eldercare 
253.28 	development partnerships under Minnesota 
253.29 	Statutes, section 256B.0917, subdivision 1c.

253.30	Subd. 14.Gaps Analysis
 					
253.31 	$218,000 in fiscal year 2026 and $218,000 in 
253.32 	fiscal year 2027 are for analysis of gaps in 
254.1 	long-term care services under Minnesota 
254.2 	Statutes, section 144A.351.

254.3	Subd. 15.Consumer Information and Assistance
 					
254.4 	$3,449,000 in fiscal year 2026 and $3,449,000 
254.5 	in fiscal year 2027 are for a grant to the Board 
254.6 	on Aging to provide information and 
254.7 	assistance services under Minnesota Statutes, 
254.8 	section 256.975, subdivision 7.

254.9	Subd. 16.Minnesota Adult Abuse Reporting
 					
254.10 	$1,819,000 in fiscal year 2026 and $1,819,000 
254.11 	in fiscal year 2027 are for a grant to the 
254.12 	Minnesota Board on Aging to handle all 
254.13 	reports of adult abuse for older adults and 
254.14 	people with disabilities in various care 
254.15 	settings.

254.16	Subd. 17.Return to Community Services
 					
254.17 	$9,341,000 in fiscal year 2026 and $9,341,000 
254.18 	in fiscal year 2027 are for a grant to the Board 
254.19 	on Aging for return to community services 
254.20 	under Minnesota Statutes, section 256.975, 
254.21 	subdivision 7.

254.22	Subd. 18.Preadmission Screening
 					
254.23 	$817,000 in fiscal year 2026 and $817,000 in 
254.24 	fiscal year 2027 are for a grant to the Board 
254.25 	on Aging for preadmission screening under 
254.26 	Minnesota Statutes, section 256.975, 
254.27 	subdivisions 7a to 7d.

254.28	Subd. 19.Direct Support Connect
 					
254.29 	$236,000 in fiscal year 2026 and $236,000 in 
254.30 	fiscal year 2027 are for a grant to the Board 
254.31 	on Aging for activities supporting Direct 
254.32 	Support Connect.

255.1	Subd. 20.Self-Directed Caregiver Grants
 					
255.2 	$477,000 in fiscal year 2026 and $477,000 in 
255.3 	fiscal year 2027 are for self-directed caregiver 
255.4 	grants under Minnesota Statutes, section 
255.5 	256.975, subdivision 12.

255.6	Subd. 21.Senior Nutrition Program
 					
255.7 	$2,695,000 in fiscal year 2026 and $2,695,000 
255.8 	in fiscal year 2027 are for the senior nutrition 
255.9 	program under Minnesota Statutes, section 
255.10 	256.9752. The general fund base for senior 
255.11 	nutrition programs under Minnesota Statutes, 
255.12 	section 256.9752, is $2,820,000 in fiscal year 
255.13 	2028 and $2,820,000 in fiscal year 2029.

255.14	Subd. 22.Senior Volunteer Programs
 					
255.15 	$1,988,000 in fiscal year 2026 and $1,988,000 
255.16 	in fiscal year 2027 are for volunteer programs 
255.17 	for retired senior citizens under Minnesota 
255.18 	Statutes, section 256.9753; the foster 
255.19 	grandparents program under Minnesota 
255.20 	Statutes, section 256.976; and the senior 
255.21 	companion program under Minnesota Statutes, 
255.22 	section 256.977.

255.23	Subd. 23.Adult Protection Grants
 					
255.24 	$866,000 in fiscal year 2026 and $867,000 in 
255.25 	fiscal year 2027 are for adult protection grants 
255.26 	to counties and Tribes under Minnesota 
255.27 	Statutes, section 256M.42.

255.28	Subd. 24.Base Level Adjustment
 					
255.29 	The general fund base for this section is 
255.30 	$42,969,000 in fiscal year 2028 and 
255.31 	$42,969,000 in fiscal year 2029.

255.32
255.33	Sec. 15. DEAF, DEAFBLIND, AND HARD OF 
HEARING GRANTS
 	$
	2,886,000
	$
	2,886,000

256.1
256.2	Sec. 16. GRANT PROGRAMS; DISABILITY 
GRANTS
 	$
	68,022,000
	$
	28,793,000

256.3
256.4	Subdivision 1.Self-Directed Bargaining 
Agreement; Orientation Start-Up Funds
 					
256.5 	$3,000,000 in fiscal year 2026 is for 
256.6 	orientation program start-up costs as defined 
256.7 	by the SEIU collective bargaining agreement. 
256.8 	This is a onetime appropriation.

256.9256.10
	Subd. 2.Self-Directed Bargaining Agreement; 
Orientation Ongoing Funds
 					
256.11 	$2,000,000 in fiscal year 2026 and $500,000 
256.12 	in fiscal year 2027 are for ongoing costs 
256.13 	related to the orientation program as defined 
256.14 	by the SEIU collective bargaining agreement.

256.15
256.16	Subd. 3.Self-Directed Bargaining Agreement; 
Training Stipends
 					
256.17 	$2,250,000 in fiscal year 2026 is for onetime 
256.18 	stipends of $750 for collective bargaining unit 
256.19 	members for training. This is a onetime 
256.20 	appropriation.

256.21
256.22	Subd. 4.Self-Directed Bargaining Agreement; 
Retirement Trust Funds
 					
256.23 	$350,000 in fiscal year 2026 is for a vendor 
256.24 	to create a retirement trust, as defined by the 
256.25 	SEIU collective bargaining agreement. This 
256.26 	is a onetime appropriation.

256.27
256.28	Subd. 5.Self-Directed Bargaining Agreement; 
Health Care Stipends
 					
256.29 	$30,750,000 in fiscal year 2026 is for stipends 
256.30 	of $1,200 for each collective bargaining unit 
256.31 	member for retention and defraying any health 
256.32 	insurance costs the member may incur. 
256.33 	Stipends are available once per fiscal year per 
256.34 	member for fiscal year 2026 and fiscal year 
256.35 	2027. Of this amount, $30,000,000 in fiscal 
257.1 	year 2026 is for stipends and $750,000 in 
257.2 	fiscal year 2026 is for administration. This is 
257.3 	a onetime appropriation and is available until 
257.4 	June 30, 2027.

257.5
257.6	Subd. 6.Disability Services Technology And 
Advocacy Expansion Grant
 					
257.7 	(a) $226,000 in fiscal year 2026 and $220,000 
257.8 	in fiscal year 2027 are for the disability 
257.9 	services technology and advocacy expansion 
257.10 	grant under Minnesota Statutes, section 
257.11 	256.4768. The general fund base for this 
257.12 	purpose is $220,000 in fiscal year 2028, 
257.13 	$220,000 in fiscal year 2029, $220,000 in 
257.14 	fiscal year 2030, and $0 in fiscal year 2031.
257.15 	(b) This subdivision expires June 30, 2030.

257.16	Subd. 7.Disability Inclusion Pilot Project
 					
257.17 	(a) $1,000,000 in fiscal year 2026 is for a 
257.18 	payment to Lifeworks Services, Inc., for a 
257.19 	statewide disability inclusion pilot project. 
257.20 	This is a onetime appropriation.
257.21 	(b) The pilot project must:
257.22 	(1) persuade employers to diversify their 
257.23 	workforces by hiring people with disabilities;
257.24 	(2) educate businesses on the economic 
257.25 	benefits of inclusive employment and provide 
257.26 	coaching on affordable accommodations;
257.27 	(3) educate Minnesotans with disabilities and 
257.28 	their families on navigating services and 
257.29 	achieving inclusion in both work and 
257.30 	community settings;
257.31 	(4) build capacity and support for culturally 
257.32 	specific services by rural, Black, Indigenous, 
257.33 	or People of Color entrepreneurs;
258.1 	(5) pilot community-requested support 
258.2 	services;
258.3 	(6) invest in safe community-focused spaces 
258.4 	to host trainings and requested support 
258.5 	services; and
258.6 	(7) launch a statewide disability inclusion 
258.7 	assessment for businesses and community 
258.8 	spaces to improve accessibility and inclusion.
258.9 	(c) The pilot project must reach all six 
258.10 	Minnesota planning areas to ensure equal 
258.11 	access to the pilot project activities in rural 
258.12 	and Tribal regions.

258.13
258.14	Subd. 8.Family Residential Service Provider 
Grants
 					
258.15 	$500,000 in fiscal year 2026 and $500,000 in 
258.16 	fiscal year 2027 are for grants to providers of 
258.17 	family residential services reimbursed under 
258.18 	Minnesota Statutes, section 256B.4914, who 
258.19 	demonstrate in a form and manner determined 
258.20 	by the commissioner of human services that 
258.21 	the total net income of the family residential 
258.22 	service provider is not generating sufficient 
258.23 	revenue to cover the operating expenses of the 
258.24 	provider incurred on or after January 1, 2026, 
258.25 	and the family foster care setting is financially 
258.26 	distressed and at risk of closure. This is a 
258.27 	onetime appropriation and is available until 
258.28 	June 30, 2029.

258.29	Subd. 9.Minnesota Ethnic Providers Network
 					
258.30 	(a) $230,000 in fiscal year 2026 is for a grant 
258.31 	to the Minnesota Ethnic Providers Network 
258.32 	to:
259.1 	(1) develop curriculum for a pretraining 
259.2 	program tailored to the educational needs of 
259.3 	potential direct support professionals;
259.4 	(2) provide workforce readiness training for 
259.5 	individuals entering the field of direct care 
259.6 	and support services;
259.7 	(3) expand recruitment efforts to increase 
259.8 	direct support professional workforce capacity, 
259.9 	particularly among diverse and 
259.10 	underrepresented communities; and
259.11 	(4) collaborate with community-based 
259.12 	organizations, educational institutions, and 
259.13 	providers to support the long-term 
259.14 	development of the direct support 
259.15 	professionals workforce.
259.16 	(b) This is a onetime appropriation.

259.17	Subd. 10.Technology for Home Grants
 					
259.18 	$300,000 in fiscal year 2026 and $300,000 in 
259.19 	fiscal year 2027 are for technology for home 
259.20 	grants under Minnesota Statutes, section 
259.21 	256.4773.

259.22
259.23	Subd. 11.Self-Advocacy Grants for Persons with 
Intellectual and Developmental Disabilities
 					
259.24 	$381,000 in fiscal year 2026 and $381,000 in 
259.25 	fiscal year 2027 are for self-advocacy grants 
259.26 	under Minnesota Statutes, section 256.477. 
259.27 	Of these amounts:
259.28 	(1) $133,000 in fiscal year 2026 and $133,000 
259.29 	in fiscal year 2027 are for the activities under 
259.30 	Minnesota Statutes, section 256.477, 
259.31 	subdivision 1, paragraph (a), and for 
259.32 	administrative costs associated with those 
259.33 	activities incurred by the grantee;
260.1 	(2) $218,000 in fiscal year 2026 and $218,000 
260.2 	in fiscal year 2027 are for the activities under 
260.3 	Minnesota Statutes, section 256.477, 
260.4 	subdivision 1, paragraph (a), clauses (5) to (7), 
260.5 	and for administrative costs associated with 
260.6 	those activities incurred by the grantee; and
260.7 	(3) $105,000 in fiscal year 2026 and $105,000 
260.8 	in fiscal year 2027 are for the activities under 
260.9 	Minnesota Statutes, section 256.477, 
260.10 	subdivision 2.

260.11	Subd. 12.Case Management Training Grants
 					
260.12 	$45,000 in fiscal year 2026 and $45,000 in 
260.13 	fiscal year 2027 are for grants to provide case 
260.14 	management training to organizations and 
260.15 	employers to support the state's disability 
260.16 	employment supports system.

260.17	Subd. 13.Family Support Program
 					
260.18 	$9,423,000 in fiscal year 2026 and $9,096,000 
260.19 	in fiscal year 2027 are for support grants under 
260.20 	Minnesota Statutes, section 252.32.

260.21	Subd. 14.Disability Hub for Families Grants
 					
260.22 	$200,000 in fiscal year 2026 and $200,000 in 
260.23 	fiscal year 2027 are for grants under Laws 
260.24 	2019, First Special Session chapter 9, article 
260.25 	14, section 2, subdivision 29, paragraph (e), 
260.26 	to connect families through innovation grants, 
260.27 	life planning tools, and website information 
260.28 	as they support a child or family member with 
260.29 	disabilities.

260.30	Subd. 15.Disability Hub
 					
260.31 	$1,716,000 in fiscal year 2026 and $2,041,000 
260.32 	in fiscal year 2027 are for the Disability Hub 
261.1 	under Minnesota Statutes, section 256.01, 
261.2 	subdivision 24.

261.3
261.4	Subd. 16.Minnesota Aging and Disability 
Resource Center
 					
261.5 	$900,000 in fiscal year 2026 and $900,000 in 
261.6 	fiscal year 2027 are for grants under 
261.7 	Minnesota Statutes, section 256.01, 
261.8 	subdivision 2, paragraph (z), to support the 
261.9 	Minnesota Aging and Disability Resource 
261.10 	Center.

261.11
261.12	Subd. 17.Day Training and Habilitation Facility 
Grants
 					
261.13 	$811,000 in fiscal year 2026 and $811,000 in 
261.14 	fiscal year 2027 are for grant allocations to 
261.15 	counties for day training and habilitation 
261.16 	services for adults with developmental 
261.17 	disabilities when provided as a social service 
261.18 	under Minnesota Statutes, sections 252.41 to 
261.19 	252.46.

261.20
261.21	Subd. 18.Employment and Technical Assistance 
Center Grants
 					
261.22 	$450,000 in fiscal year 2026 and $1,800,000 
261.23 	in fiscal year 2027 are for employment and 
261.24 	technical assistance grants to assist 
261.25 	organizations and employers in promoting a 
261.26 	more inclusive workplace for people with 
261.27 	disabilities.

261.28	Subd. 19.Grant to Family Voices in Minnesota
 					
261.29 	$75,000 in fiscal year 2026 and $75,000 in 
261.30 	fiscal year 2027 are for a grant to Family 
261.31 	Voices in Minnesota under Minnesota 
261.32 	Statutes, section 256.4776.

262.1
262.2	Subd. 20.Intractable Epilepsy Demonstration 
Project
 					
262.3 	$344,000 in fiscal year 2026 and $344,000 in 
262.4 	fiscal year 2027 are for the demonstration 
262.5 	project established under Laws 1988, chapter 
262.6 	689, article 2, section 251, and a grant to a 
262.7 	nonresidential program that provides medical 
262.8 	monitoring and living skills training programs 
262.9 	for persons with intractable epilepsy who need 
262.10 	assistance in the transition to independent 
262.11 	living. The grant awarded under this section 
262.12 	must be used for salaries, administration, 
262.13 	transportation, and other program costs.

262.14
262.15	Subd. 21.Lead Agency Capacity-Building 
Grants
 					
262.16 	$2,413,000 in fiscal year 2026 and $2,411,000 
262.17 	in fiscal year 2027 are for grants to assist 
262.18 	organizations, counties, and Tribes to build 
262.19 	capacity for employment opportunities for 
262.20 	people with disabilities.

262.21	Subd. 22.Minnesota Inclusion Initiative Grants
 					
262.22 	$150,000 in fiscal year 2026 and $150,000 in 
262.23 	fiscal year 2027 are from the general fund for 
262.24 	grants under Minnesota Statutes, section 
262.25 	256.4772.

262.26	Subd. 23.MnCHOICES Modifications
 					
262.27 	$450,000 in fiscal year 2026 and $125,000 in 
262.28 	fiscal year 2027 are for enhancements to the 
262.29 	MnCHOICES assessment tool to provide 
262.30 	real-time employment information, 
262.31 	communication, and resources, supporting 
262.32 	individuals and professionals in improving 
262.33 	education, engagement, and access to 
262.34 	employment opportunities.

263.1	Subd. 24.Parent-to-Parent USA Peer Support
 					
263.2 	$125,000 in fiscal year 2026 and $125,000 in 
263.3 	fiscal year 2027 are for a grant to an alliance 
263.4 	member of Parent-to-Parent USA under 
263.5 	Minnesota Statutes, section 256.4776.

263.6
263.7
263.8	Subd. 25.Preadmission Screening and Resident 
Reviews for Persons with Mental Illness or 
Developmental Disabilities
 					
263.9 	$20,000 in fiscal year 2026 and $20,000 in 
263.10 	fiscal year 2027 are for reimbursement to 
263.11 	counties for costs associated with completing 
263.12 	federally required preadmission screening and 
263.13 	resident reviews of nursing home applicants 
263.14 	or residents with a probable mental illness or 
263.15 	a developmental disability.

263.16
263.17	Subd. 26.Regional Support for Person-Centered 
Practices Grants
 					
263.18 	$710,000 in fiscal year 2026 and $710,000 in 
263.19 	fiscal year 2027 are for grants to regional 
263.20 	cohorts to extend and expand regional capacity 
263.21 	for person-centered planning through training, 
263.22 	coaching, and mentoring for person-centered 
263.23 	and collaborative safety practices benefiting 
263.24 	people with disabilities and employees, 
263.25 	organizations, and communities serving people 
263.26 	with disabilities.

263.27	Subd. 27.Region 10 Grants
 					
263.28 	$100,000 in fiscal year 2026 and $100,000 in 
263.29 	fiscal year 2027 are for a grant provided under 
263.30 	Minnesota Statutes, section 256B.097.

263.31
263.32	Subd. 28.Semi-Independent Living Services 
Grants
 					
263.33 	$7,229,000 in fiscal year 2026 and $7,229,000 
263.34 	in fiscal year 2027 are for semi-independent 
264.1 	living services grants under Minnesota 
264.2 	Statutes, section 252.275.

264.3
264.4	Subd. 29.Case Management Supportive Services 
for People Living with HIV/AIDS
 					
264.5 	$1,156,000 in fiscal year 2026 and $1,156,000 
264.6 	in fiscal year 2027 are for grants to 
264.7 	community-based HIV/AIDS supportive 
264.8 	services providers as defined in Minnesota 
264.9 	Statutes, section 256.01, subdivision 19.

264.10
264.11	Subd. 30.Health Care Coverage for People 
Living with HIV/AIDS
 					
264.12 	$1,064,000 in fiscal year 2026 and $1,064,000 
264.13 	in fiscal year 2027 are for payment of allowed 
264.14 	health care costs under Minnesota Statutes, 
264.15 	section 256.9365.

264.16	Subd. 31.State Quality Council
 					
264.17 	$600,000 in fiscal year 2026 and $600,000 in 
264.18 	fiscal year 2027 are for the State Quality 
264.19 	Council under Minnesota Statutes, section 
264.20 	256B.097, to provide technical assistance and 
264.21 	monitoring of person-centered outcomes 
264.22 	related to inclusive community living and 
264.23 	employment. The funding must be used by the 
264.24 	State Quality Council to execute a statewide 
264.25 	plan for a systems change in person-centered 
264.26 	planning that will achieve desired outcomes, 
264.27 	including increased integrated employment 
264.28 	and community living.

264.29	Subd. 32.Technology for Home Grants
 					
264.30 	$622,000 in fiscal year 2026 and $622,000 in 
264.31 	fiscal year 2027 are for technology for home 
264.32 	grants under Minnesota Statutes, section 
264.33 	256.4773.

265.1	Subd. 33.Transition to Community Initiative
 					
265.2 	$1,811,000 in fiscal year 2026 and $1,811,000 
265.3 	in fiscal year 2027 are for the transition to 
265.4 	community initiative under Minnesota 
265.5 	Statutes, section 256.478.

265.6
265.7	Subd. 34.Self-Directed Bargaining Agreement; 
Training Stipends; Allocation Correction
 					
265.8 	$87,000 in fiscal year 2026 and $87,000 in 
265.9 	fiscal year 2027 are to correct a funding 
265.10 	allocation mistake for stipends for collective 
265.11 	bargaining unit members initially appropriated 
265.12 	under Laws 2017, First Special Session 
265.13 	chapter 6, article 18, section 2, subdivision 15, 
265.14 	paragraph (b), clause (2).

265.15	Subd. 35.Base Level Adjustments
 					
265.16 	The general fund base for this section is 
265.17 	$28,293,000 in fiscal year 2028 and 
265.18 	$28,293,000 in fiscal year 2029.

265.19
265.20	Sec. 17. GRANT PROGRAMS; ADULT 
MENTAL HEALTH GRANTS
 	$
	600,000
	$
	-0-

265.21
265.22	Subdivision 1.Isuroon Sexual and Domestic 
Violence Program
 					
265.23 	$400,000 in fiscal year 2026 is for a grant to 
265.24 	Isuroon for its sexual and domestic violence 
265.25 	program that provides essential culturally and 
265.26 	linguistically specific and trauma-informed 
265.27 	services to immigrant, refugee, and ethnic 
265.28 	women and their families in Minnesota who 
265.29 	are survivors of sexual and domestic violence. 
265.30 	Eligible uses of grant money under this 
265.31 	subdivision include maintaining a 24-hour 
265.32 	crisis line for immediate support and referral, 
265.33 	rental assistance to ensure safe and stable 
265.34 	housing, legal support and advocacy to assist 
265.35 	with legal proceedings, and home visiting 
266.1 	services to provide in-home support and 
266.2 	counseling. This is a onetime appropriation 
266.3 	and is available until June 30, 2027.

266.4	Subd. 2.Somali Youth Development Network
 					
266.5 	$200,000 in fiscal year 2026 is for a grant to 
266.6 	The Somali Youth Development Network to 
266.7 	further its mission to provide accessible, 
266.8 	high-quality services such as counseling and 
266.9 	therapy, mentorship, educational support, skill 
266.10 	development, and community engagement 
266.11 	initiatives to at-risk youth and families 
266.12 	affected by trauma, with a specific focus on 
266.13 	gun violence prevention. The grant money 
266.14 	must be used to enhance and expand The 
266.15 	Somali Youth Development Network's 
266.16 	existing services and to invest in critical 
266.17 	resources such as staff training, counseling 
266.18 	facilities, mentorship programs, educational 
266.19 	materials, community outreach initiatives, and 
266.20 	comprehensive support programs. This is a 
266.21 	onetime appropriation and is available until 
266.22 	June 30, 2027.

266.23
266.24
266.25	Sec. 18. GRANT PROGRAMS; CHEMICAL 
DEPENDENCY TREATMENT SUPPORT 
GRANTS
 	$
	5,826,000
	$
	4,825,000

266.26	Subdivision 1.Appropriations by Fund

266.27	Appropriations by Fund
	
266.28		2026
	2027
	
266.29	General
	4,093,000
	3,092,000
	
266.30	Lottery Prize
	1,733,000
	1,733,000

266.31	Subd. 2.Problem Gambling
 					
266.32 	$225,000 in fiscal year 2026 and $225,000 in 
266.33 	fiscal year 2027 are from the lottery prize fund 
266.34 	for a grant to a state affiliate recognized by 
266.35 	the National Council on Problem Gambling. 
267.1 	The affiliate must provide services to increase 
267.2 	public awareness of problem gambling, 
267.3 	education, training for individuals and 
267.4 	organizations that provide effective treatment 
267.5 	services to problem gamblers and their 
267.6 	families, and research related to problem 
267.7 	gambling.

267.8	Subd. 3.Generation Hope
 					
267.9 	(a) $500,000 in fiscal year 2026 is from the 
267.10 	general fund for a grant to Generation Hope. 
267.11 	Money must be used to enhance culturally 
267.12 	specific peer recovery and outreach programs, 
267.13 	including:
267.14 	(1) expanding culturally relevant peer recovery 
267.15 	support services to meet the diverse needs of 
267.16 	individuals in recovery;
267.17 	(2) conducting targeted outreach to 
267.18 	underserved communities to increase access 
267.19 	to recovery resources;
267.20 	(3) providing training and professional 
267.21 	development for peer recovery specialists to 
267.22 	ensure culturally informed care; and
267.23 	(4) partnering with community-based 
267.24 	organizations to strengthen connections and 
267.25 	provide wraparound support services for 
267.26 	participants.
267.27 	(b) This is a onetime appropriation.

267.28	Subd. 4.Restoration for All, Inc.
 					
267.29 	$435,000 in fiscal year 2026 and $434,000 in 
267.30 	fiscal year 2027 are from the general fund for 
267.31 	a grant to Restoration for All, Inc. Grant 
267.32 	money must be used for activities designed to 
267.33 	enhance culturally relevant services and 
268.1 	resources for Minnesota's African immigrant 
268.2 	refugee community related to mental health, 
268.3 	substance use disorder, and suicide prevention. 
268.4 	Grant money may also be used to address the 
268.5 	physical and mental wellness needs of the 
268.6 	elderly and mental health support and suicide 
268.7 	prevention for underrepresented students in 
268.8 	higher education. This is a onetime 
268.9 	appropriation and is available until June 30, 
268.10 	2027.

268.11	Subd. 5.Change the Outcome Ongoing Funding
 					
268.12 	$425,000 in fiscal year 2026 and $425,000 in 
268.13 	fiscal year 2027 are from the general fund for 
268.14 	a grant to Change the Outcome to provide:
268.15 	(1) data-centered learning opportunities on the 
268.16 	dangers of opioid use in middle and high 
268.17 	schools and communities in Minnesota;
268.18 	(2) instruction on prevention strategies, 
268.19 	assessing personal risk, and how to recognize 
268.20 	overdose;
268.21 	(3) information on emerging drug trends, 
268.22 	including but not limited to fentanyl, xylazine, 
268.23 	and pressed pills; and
268.24 	(4) access to resources, including support for 
268.25 	those struggling with substance use disorders.

268.26	Subd. 6.Twin Cities Recovery Project
 					
268.27 	$50,000 in fiscal year 2026 and $50,000 in 
268.28 	fiscal year 2027 are from the general fund for 
268.29 	a grant to Twin Cities Recovery Project, a 
268.30 	recovery community organization. Grant 
268.31 	money must be used to:
268.32 	(1) provide geographically or culturally 
268.33 	specific peer recovery services and education 
269.1 	aimed at addressing disparities in 
269.2 	posttreatment substance use disorder and 
269.3 	mental health support; and
269.4 	(2) expand access to posttreatment recovery 
269.5 	support for high-need populations.

269.6	Subd. 7.Niyyah Recovery Initiative
 					
269.7 	$200,000 in fiscal year 2026 is from the 
269.8 	general fund for a grant to Niyyah Recovery 
269.9 	Initiative to fund support program costs, 
269.10 	community engagement, staffing, and targeted 
269.11 	high-impact outreach to expand recovery 
269.12 	services and provide critical support to 
269.13 	individuals affected by substance use. This is 
269.14 	a onetime appropriation and is available until 
269.15 	June 30, 2027.

269.16	Subd. 8.Wellness in the Woods
 					
269.17 	$300,000 in fiscal year 2026 and $300,000 in 
269.18 	fiscal year 2027 are from the general fund for 
269.19 	a grant to Wellness in the Woods for daily 
269.20 	peer support and special sessions for 
269.21 	individuals who are in substance use recovery,  
269.22 	are transitioning out of incarceration, or have 
269.23 	experienced trauma.

269.24	Subd. 9.Peer Specialists
 					
269.25 	$300,000 in fiscal year 2026 is for peer 
269.26 	specialists grants first established under Laws 
269.27 	2016, chapter 189, article 23, section 2, 
269.28 	subdivision 4, paragraph (f). This is a onetime 
269.29 	appropriation.

269.30	Subd. 10.American Indian Programs
 					
269.31 	$1,397,000 in fiscal year 2026 and $1,397,000 
269.32 	in fiscal year 2027 are from the general fund 
269.33 	for the American Indian programs under 
270.1 	Minnesota Statutes, section 254A.03, 
270.2 	subdivision 2.

270.3	Subd. 11.Methamphetamine Treatment Grant
 					
270.4 	$125,000 in fiscal year 2026 and $125,000 in 
270.5 	fiscal year 2027 are from the general fund for 
270.6 	a grant to a nonprofit organization to treat 
270.7 	methamphetamine abuse and the abuse of 
270.8 	other substances. The focus audience is 
270.9 	women with dependent children identified as 
270.10 	substance abusers, especially those whose 
270.11 	most-used controlled substance is 
270.12 	methamphetamine.

270.13	Subd. 12.Base Level Adjustment
 					
270.14 	The general fund base for this section is 
270.15 	$2,658,000 in fiscal year 2028 and $2,658,000 
270.16 	in fiscal year 2029.

270.17 	Sec. 19. Laws 2023, chapter 61, article 9, section 2, subdivision 13, is amended to read:

270.18
270.19	Subd. 13.Grant Programs; Other Long-Term 
Care Grants
 		152,387,000
		1,925,000
	
270.20 	(a) Provider Capacity Grant for Rural and 
270.21 	Underserved Communities. $17,148,000 in 
270.22 	fiscal year 2024 is for provider capacity grants 
270.23 	for rural and underserved communities. 
270.24 	Notwithstanding Minnesota Statutes, section 
270.25 	16A.28, this appropriation is available until 
270.26 	June 30, 2027. This is a onetime appropriation.
270.27 	(b) New American Legal, Social Services, 
270.28 	and Long-Term Care Grant Program.
270.29 	$28,316,000 in fiscal year 2024 is for 
270.30 	long-term care workforce grants for new 
270.31 	Americans. Notwithstanding Minnesota 
270.32 	Statutes, section 16A.28, this appropriation is 
271.1 	available until June 30, 2027. This is a onetime 
271.2 	appropriation.
271.3 	(c) Supported Decision Making Programs.
271.4 	$4,000,000 in fiscal year 2024 is for supported 
271.5 	decision making grants. This is a onetime 
271.6 	appropriation and is available until June 30, 
271.7 	2025 2026.
271.8 	(d) Direct Support Professionals 
271.9 	Employee-Owned Cooperative Program.
271.10 	$350,000 in fiscal year 2024 is for a grant to 
271.11 	the Metropolitan Consortium of Community 
271.12 	Developers for the Direct Support 
271.13 	Professionals Employee-Owned Cooperative 
271.14 	program. The grantee must use the grant 
271.15 	amount for outreach and engagement, 
271.16 	managing a screening and selection process, 
271.17 	providing one-on-one technical assistance, 
271.18 	developing and providing training curricula 
271.19 	related to cooperative development and home 
271.20 	and community-based waiver services, 
271.21 	administration, reporting, and program 
271.22 	evaluation. This is a onetime appropriation 
271.23 	and is available until June 30, 2025.
271.24 	(e) Long-Term Services and Supports 
271.25 	Workforce Incentive Grants. $83,560,000 
271.26 	in fiscal year 2024 is for long-term services 
271.27 	and supports workforce incentive grants 
271.28 	administered according to Minnesota Statutes, 
271.29 	section 256.4764. Notwithstanding Minnesota 
271.30 	Statutes, section 16A.28, this appropriation is 
271.31 	available until June 30, 2029. This is a onetime 
271.32 	appropriation.
271.33 	(f) Base Level Adjustment. The general fund 
271.34 	base is $3,949,000 in fiscal year 2026 and 
271.35 	$3,949,000 in fiscal year 2027. Of these 
272.1 	amounts, $2,024,000 in fiscal year 2026 and 
272.2 	$2,024,000 in fiscal year 2027 are for PCA 
272.3 	background study grants.

272.4 	Sec. 20. Laws 2023, chapter 61, article 9, section 2, subdivision 16, as amended by Laws 
272.5 	2023, chapter 70, article 15, section 8, and Laws 2024, chapter 127, article 53, section 14, 
272.6 	is amended to read:

272.7	Subd. 16.Grant Programs; Disabilities Grants
 		113,684,000
		30,377,000
	
272.8 	(a) Temporary Grants for Small 
272.9 	Customized Living Providers. $5,450,000 
272.10 	in fiscal year 2024 is for grants to assist small 
272.11 	customized living providers to transition to 
272.12 	community residential services licensure or 
272.13 	integrated community supports licensure. 
272.14 	Notwithstanding Minnesota Statutes, section 
272.15 	16A.28, this appropriation is available until 
272.16 	June 30, 2027. This is a onetime appropriation.
272.17 	(b) Lead Agency Capacity Building Grants.
272.18 	$444,000 in fiscal year 2024 and $2,396,000 
272.19 	in fiscal year 2025 are for grants to assist 
272.20 	organizations, counties, and Tribes to build 
272.21 	capacity for employment opportunities for 
272.22 	people with disabilities. The base for this 
272.23 	appropriation is $2,413,000 in fiscal year 2026 
272.24 	and $2,411,000 in fiscal year 2027.
272.25 	(c) Employment and Technical Assistance 
272.26 	Center Grants. $450,000 in fiscal year 2024 
272.27 	and $1,800,000 in fiscal year 2025 are for 
272.28 	employment and technical assistance grants 
272.29 	to assist organizations and employers in 
272.30 	promoting a more inclusive workplace for 
272.31 	people with disabilities.
272.32 	(d) Case Management Training Grants.
272.33 	$37,000 in fiscal year 2024 and $123,000 in 
272.34 	fiscal year 2025 are for grants to provide case 
273.1 	management training to organizations and 
273.2 	employers to support the state's disability 
273.3 	employment supports system. The base for 
273.4 	this appropriation is $45,000 in fiscal year 
273.5 	2026 and $45,000 in fiscal year 2027.
273.6 	(e) Self-Directed Bargaining Agreement; 
273.7 	Electronic Visit Verification Stipends.
273.8 	$6,095,000 in fiscal year 2024 is for onetime 
273.9 	stipends of $200 to bargaining members to 
273.10 	offset the potential costs related to people 
273.11 	using individual devices to access the 
273.12 	electronic visit verification system. Of this 
273.13 	amount, $5,600,000 is for stipends and 
273.14 	$495,000 is for administration. This is a 
273.15 	onetime appropriation and is available until 
273.16 	June 30, 2025.
273.17 	(f) Self-Directed Collective Bargaining 
273.18 	Agreement; Temporary Rate Increase 
273.19 	Memorandum of Understanding. $1,600,000 
273.20 	in fiscal year 2024 is for onetime stipends for 
273.21 	individual providers covered by the SEIU 
273.22 	collective bargaining agreement based on the 
273.23 	memorandum of understanding related to the 
273.24 	temporary rate increase in effect between 
273.25 	December 1, 2020, and February 7, 2021. Of 
273.26 	this amount, $1,400,000 of the appropriation 
273.27 	is for stipends and $200,000 is for 
273.28 	administration. This is a onetime 
273.29 	appropriation.
273.30 	(g) Self-Directed Collective Bargaining 
273.31 	Agreement; Retention Bonuses. $50,750,000 
273.32 	in fiscal year 2024 is for onetime retention 
273.33 	bonuses covered by the SEIU collective 
273.34 	bargaining agreement. Of this amount, 
273.35 	$50,000,000 is for retention bonuses and 
274.1 	$750,000 is for administration of the bonuses. 
274.2 	This is a onetime appropriation and is 
274.3 	available until June 30, 2025.
274.4 	(h) Self-Directed Bargaining Agreement; 
274.5 	Training Stipends. $2,100,000 in fiscal year 
274.6 	2024 and $100,000 in fiscal year 2025 are for 
274.7 	onetime stipends of $500 for collective 
274.8 	bargaining unit members who complete 
274.9 	designated, voluntary trainings made available 
274.10 	through or recommended by the State Provider 
274.11 	Cooperation Committee. Of this amount, 
274.12 	$2,000,000 in fiscal year 2024 is for stipends, 
274.13 	and $100,000 in fiscal year 2024 and $100,000 
274.14 	in fiscal year 2025 are for administration. This 
274.15 	is a onetime appropriation.
274.16 	(i) Self-Directed Bargaining Agreement; 
274.17 	Orientation Program. $2,000,000 in fiscal 
274.18 	year 2024 and $2,000,000 in fiscal year 2025 
274.19 	are for onetime $100 payments to collective 
274.20 	bargaining unit members who complete 
274.21 	voluntary orientation requirements. Of this 
274.22 	amount, $1,500,000 in fiscal year 2024 and 
274.23 	$1,500,000 in fiscal year 2025 are for the 
274.24 	onetime $100 payments, and $500,000 in 
274.25 	fiscal year 2024 and $500,000 in fiscal year 
274.26 	2025 are for orientation-related costs. This is 
274.27 	a onetime appropriation.
274.28 	(j) Self-Directed Bargaining Agreement; 
274.29 	Home Care Orientation Trust. $1,000,000 
274.30 	in fiscal year 2024 is for the Home Care 
274.31 	Orientation Trust under Minnesota Statutes, 
274.32 	section 179A.54, subdivision 11. The 
274.33 	commissioner shall disburse the appropriation 
274.34 	to the board of trustees of the Home Care 
274.35 	Orientation Trust for deposit into an account 
275.1 	designated by the board of trustees outside the 
275.2 	state treasury and state's accounting system. 
275.3 	This is a onetime appropriation and is 
275.4 	available until June 30, 2025.
275.5 	(k) HIV/AIDS Supportive Services.
275.6 	$12,100,000 in fiscal year 2024 is for grants 
275.7 	to community-based HIV/AIDS supportive 
275.8 	services providers as defined in Minnesota 
275.9 	Statutes, section 256.01, subdivision 19, and 
275.10 	for payment of allowed health care costs as 
275.11 	defined in Minnesota Statutes, section 
275.12 	256.9365. This is a onetime appropriation and 
275.13 	is available until June 30, 2025.
275.14 	(l) Motion Analysis Advancements Clinical 
275.15 	Study and Patient Care. $400,000 is in fiscal 
275.16 	year 2024 is for a grant to the Mayo Clinic 
275.17 	Motion Analysis Laboratory and Limb Lab 
275.18 	for continued research in motion analysis 
275.19 	advancements and patient care. This is a 
275.20 	onetime appropriation and is available through 
275.21 	June 30, 2025 2027.
275.22 	(m) Grant to Family Voices in Minnesota.
275.23 	$75,000 in fiscal year 2024 and $75,000 in 
275.24 	fiscal year 2025 are for a grant to Family 
275.25 	Voices in Minnesota under Minnesota 
275.26 	Statutes, section 256.4776.
275.27 	(n) Parent-to-Parent Programs.
275.28 	(1) $550,000 in fiscal year 2024 and $550,000 
275.29 	in fiscal year 2025 are for grants to 
275.30 	organizations that provide services to 
275.31 	underserved communities with a high 
275.32 	prevalence of autism spectrum disorder. This 
275.33 	is a onetime appropriation and is available 
275.34 	until June 30, 2025.
276.1 	(2) The commissioner shall give priority to 
276.2 	organizations that provide culturally specific 
276.3 	and culturally responsive services.
276.4 	(3) Eligible organizations must:
276.5 	(i) conduct outreach and provide support to 
276.6 	newly identified parents or guardians of a child 
276.7 	with special health care needs;
276.8 	(ii) provide training to educate parents and 
276.9 	guardians in ways to support their child and 
276.10 	navigate the health, education, and human 
276.11 	services systems;
276.12 	(iii) facilitate ongoing peer support for parents 
276.13 	and guardians from trained volunteer support 
276.14 	parents; and
276.15 	(iv) communicate regularly with other 
276.16 	parent-to-parent programs and national 
276.17 	organizations to ensure that best practices are 
276.18 	implemented.
276.19 	(4) Grant recipients must use grant money for 
276.20 	the activities identified in clause (3).
276.21 	(5) For purposes of this paragraph, "special 
276.22 	health care needs" means disabilities, chronic 
276.23 	illnesses or conditions, health-related 
276.24 	educational or behavioral problems, or the risk 
276.25 	of developing disabilities, illnesses, conditions, 
276.26 	or problems.
276.27 	(6) Each grant recipient must report to the 
276.28 	commissioner of human services annually by 
276.29 	January 15 with measurable outcomes from 
276.30 	programs and services funded by this 
276.31 	appropriation the previous year including the 
276.32 	number of families served and the number of 
277.1 	volunteer support parents trained by the 
277.2 	organization's parent-to-parent program.
277.3 	(o) Self-Advocacy Grants for Persons with 
277.4 	Intellectual and Developmental Disabilities.
277.5 	$323,000 in fiscal year 2024 and $323,000 in 
277.6 	fiscal year 2025 are for self-advocacy grants 
277.7 	under Minnesota Statutes, section 256.477. 
277.8 	This is a onetime appropriation. Of these 
277.9 	amounts, $218,000 in fiscal year 2024 and 
277.10 	$218,000 in fiscal year 2025 are for the 
277.11 	activities under Minnesota Statutes, section 
277.12 	256.477, subdivision 1, paragraph (a), clauses 
277.13 	(5) to (7), and for administrative costs, and 
277.14 	$105,000 in fiscal year 2024 and $105,000 in 
277.15 	fiscal year 2025 are for the activities under 
277.16 	Minnesota Statutes, section 256.477, 
277.17 	subdivision 2.
277.18 	(p) Technology for Home Grants. $300,000 
277.19 	in fiscal year 2024 and $300,000 in fiscal year 
277.20 	2025 are for technology for home grants under 
277.21 	Minnesota Statutes, section 256.4773.
277.22 	(q) Community Residential Setting 
277.23 	Transition. $500,000 in fiscal year 2024 is 
277.24 	for a grant to Hennepin County to expedite 
277.25 	approval of community residential setting 
277.26 	licenses subject to the corporate foster care 
277.27 	moratorium exception under Minnesota 
277.28 	Statutes, section 245A.03, subdivision 7, 
277.29 	paragraph (a), clause (5).
277.30 	(r) Base Level Adjustment. The general fund 
277.31 	base is $27,343,000 in fiscal year 2026 and 
277.32 	$27,016,000 in fiscal year 2027.

278.1 	Sec. 21. Laws 2024, chapter 127, article 53, section 2, subdivision 13, is amended to read:

278.2
278.3	Subd. 13.Grant Programs; Aging and Adult 
Services Grants
 		-0-
		4,500,000
	
278.4 	(a) Caregiver Respite Services Grants.
278.5 	$2,000,000 in fiscal year 2025 is for caregiver 
278.6 	respite services grants under Minnesota 
278.7 	Statutes, section 256.9756. This is a onetime 
278.8 	appropriation. Notwithstanding Minnesota 
278.9 	Statutes, section 16A.28, subdivision 3, this 
278.10 	appropriation is available until June 30, 2027.
278.11 	(b) Caregiver Support Programs.
278.12 	$2,500,000 in fiscal year 2025 is for the 
278.13 	Minnesota Board on Aging for the purposes 
278.14 	of the caregiver support programs under 
278.15 	Minnesota Statutes, section 256.9755. 
278.16 	Programs receiving funding under this 
278.17 	paragraph must include an ALS-specific 
278.18 	respite service in their caregiver support 
278.19 	program. This is a onetime appropriation. 
278.20 	Notwithstanding Minnesota Statutes, section 
278.21 	16A.28, subdivision 3, this appropriation is 
278.22 	available until June 30, 2027 2028.

278.23 	Sec. 22. Laws 2024, chapter 127, article 53, section 2, subdivision 15, is amended to read:

278.24
278.25	Subd. 15.Grant Programs; Adult Mental Health 
Grants
 		(8,900,000)
		2,364,000
	
278.26 	(a) Locked Intensive Residential Treatment 
278.27 	Services. $1,000,000 in fiscal year 2025 is for 
278.28 	start-up funds to intensive residential treatment 
278.29 	services providers to provide treatment in 
278.30 	locked facilities for patients meeting medical 
278.31 	necessity criteria and who may also be referred 
278.32 	for competency attainment or a competency 
278.33 	examination under Minnesota Statutes, 
278.34 	sections 611.40 to 611.59. This is a onetime 
279.1 	appropriation. Notwithstanding Minnesota 
279.2 	Statutes, section 16A.28, subdivision 3, this 
279.3 	appropriation is available until June 30, 2027.
279.4 	(b) Engagement Services Pilot Grants.
279.5 	$1,500,000 in fiscal year 2025 is for 
279.6 	engagement services pilot grants. Of this 
279.7 	amount, $250,000 in fiscal year 2025 is for an 
279.8 	engagement services pilot grant to Otter Tail 
279.9 	County. This is a onetime appropriation. 
279.10 	Notwithstanding Minnesota Statutes, section 
279.11 	16A.28, subdivision 3, this appropriation is 
279.12 	available until June 30, 2026 2028.
279.13 	(c) Mental Health Innovation Grant 
279.14 	Program. $1,321,000 in fiscal year 2025 is 
279.15 	for the mental health innovation grant program 
279.16 	under Minnesota Statutes, section 245.4662. 
279.17 	This is a onetime appropriation. 
279.18 	Notwithstanding Minnesota Statutes, section 
279.19 	16A.28, subdivision 3, this appropriation is 
279.20 	available until June 30, 2026.
279.21 	(d) Behavioral Health Services For 
279.22 	Immigrant And Refugee Communities.
279.23 	$354,000 in fiscal year 2025 is for a payment 
279.24 	to African Immigrant Community Services to 
279.25 	provide culturally and linguistically 
279.26 	appropriate services to new Americans with 
279.27 	disabilities, mental health needs, and substance 
279.28 	use disorders and to connect such individuals 
279.29 	with appropriate alternative service providers 
279.30 	to ensure continuity of care. This is a onetime 
279.31 	appropriation. Notwithstanding Minnesota 
279.32 	Statutes, section 16A.28, subdivision 3, this 
279.33 	appropriation is available until June 30, 2027.
279.34 	(e) Base Level Adjustment. The general fund 
279.35 	base is decreased by $1,811,000 in fiscal year 
280.1 	2026 and decreased by $1,811,000 in fiscal 
280.2 	year 2027.

280.3 	Sec. 23. TRANSFERS AND GRANT CANCELLATIONS AND ELIMINATIONS.
 280.4 		Subdivision 1.Local planning grant elimination. The fiscal year 2026 and fiscal year 
280.5 	2027 general fund base appropriations for local planning grants for creating alternatives to 
280.6 	congregate living for individuals with lower needs first established under Laws 2011, First 
280.7 	Special Session chapter 9, article 10, section 3, subdivision 4, paragraph (k), are reduced 
280.8 	from $254,000 to $0.
280.9 		Subd. 2.Chemical dependency peer specialists grant elimination. The fiscal year 
280.10 	2027 general fund base appropriation for grants for peer specialists first established under 
280.11 	Laws 2016, chapter 189, article 23, section 2, subdivision 4, paragraph (f), is reduced from 
280.12 	$725,000 to $0.
280.13 		Subd. 3.Community residential setting transitional grant cancellation. Any 
280.14 	unencumbered and unexpended amount of the fiscal year 2024 appropriation in Laws 2023, 
280.15 	chapter 61, article 9, section 2, subdivision 16, paragraph (a), for grants to assist small 
280.16 	customized living providers to transition to community residential services licensure or 
280.17 	integrated community supports licensure, estimated to be $5,450,000, is canceled.
280.18 		Subd. 4.Retention bonus cancellation. Any unencumbered and unexpended amount 
280.19 	of the fiscal year 2024 appropriation in Laws 2023, chapter 61, article 9, section 2, 
280.20 	subdivision 16, paragraph (g), for retention bonuses, estimated to be $27,000,000, is canceled.
280.21 		Subd. 5.Orientation payments cancellation. Any unencumbered and unexpended 
280.22 	amount of the fiscal year 2024 appropriation referenced in Laws 2023, chapter 61, article 
280.23 	9, section 2, subdivision 16, paragraph (i), for orientation payments, estimated to be 
280.24 	$1,750,000, is canceled.
280.25 		Subd. 6.Safe recovery site grant cancellation. Any unencumbered and unexpended 
280.26 	amount of the fiscal year 2024 appropriation in Laws 2023, chapter 61, article 9, section 2, 
280.27 	subdivision 18, paragraph (b), for grants to establish safe recovery sites, estimated to be 
280.28 	$13,528,000, is canceled.
280.29 		Subd. 7.Harm reduction grant cancellation. Any unencumbered and unexpended 
280.30 	amount of the fiscal year 2024 appropriation in Laws 2023, chapter 61, article 9, section 2, 
280.31 	subdivision 18, paragraph (e), for grants to purchase syringes, testing supplies, and opiate 
280.32 	antagonists, estimated to be $7,597,000, is canceled.
281.1 		Subd. 8.Nursing facility payment program cancellation. Any unencumbered and 
281.2 	unexpended amount of the fiscal year 2024 appropriation in Laws 2023, chapter 74, article 
281.3 	1, section 6, subdivision 2, for payments to nursing facilities, estimated to be $1,416,000, 
281.4 	is canceled.
281.5 		Subd. 9.Advisory committee for Direct Care and Treatment funding 
281.6 	cancellation. Any unencumbered and unexpended amount of the fiscal year 2025 
281.7 	appropriation in Laws 2024, chapter 127, article 53, section 2, subdivision 20, paragraph 
281.8 	(d),  for the Direct Care and Treatment advisory committee, estimated to be $482,000, is 
281.9 	canceled.
281.10 		Subd. 10.Cancellation and transfer of the human services response contingency 
281.11 	account balance. (a) The remaining unencumbered balance in the human services response 
281.12 	contingency account established under Minnesota Statutes, section 256.044, estimated to 
281.13 	be $2,500,000, is canceled to the special revenue fund.
281.14 	(b) An amount equal to the amount canceled under paragraph (a) is transferred from the 
281.15 	special revenue fund to the general fund.
281.16 		Subd. 11.Cancellation and transfer of family and medical benefit funding (a) 
281.17 	$20,000,000 in fiscal year 2026 is canceled from the family and medical benefit account to 
281.18 	the family and medical benefit insurance fund.
281.19 	(b) An amount equal to the amount canceled under paragraph (a) is transferred from the 
281.20 	family and medical benefit insurance fund to the general fund.
281.21 		Subd. 12.Transfer from the opiate epidemic response fund to the general fund. The 
281.22 	commissioner of management and budget must transfer $1,000,000 in fiscal year 2026 and 
281.23 	$1,000,000 in fiscal year 2027 from the registration and license fee account in the opiate 
281.24 	epidemic response fund under Minnesota Statutes, section 256.043, subdivision 3, to the 
281.25 	general fund. For fiscal years 2028 to 2031, the commissioner of management and budget 
281.26 	must include a transfer of $1,000,000 each year from the registration and license fee account 
281.27 	in the opiate epidemic response fund to the general fund when preparing each forecast under 
281.28 	Minnesota Statutes, section 16A.103, from the effective date of this subdivision through 
281.29 	the February 2027 forecast.

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

281.31 	Sec. 24. TRANSFERS.
 281.32 		Subdivision 1.Grants. The commissioner of human services, with the advance approval 
281.33 	of the commissioner of management and budget, may transfer unencumbered appropriation 
282.1 	balances for the biennium ending June 30, 2027, within fiscal years among general assistance, 
282.2 	medical assistance, MinnesotaCare, the Minnesota supplemental aid program, the housing 
282.3 	support program, and the entitlement portion of the behavioral health fund between fiscal 
282.4 	years of the biennium. The commissioner shall report to the chairs and ranking minority 
282.5 	members of the legislative committees with jurisdiction over health and human services 
282.6 	quarterly about transfers made under this subdivision.
282.7 		Subd. 2.Administration. Positions, salary money, and nonsalary administrative money 
282.8 	may be transferred within the Department of Human Services as the commissioner deems 
282.9 	necessary, with the advance approval of the commissioner of management and budget. The 
282.10 	commissioner shall report to the chairs and ranking minority members of the legislative 
282.11 	committees with jurisdiction over health and human services finance quarterly about transfers 
282.12 	made under this subdivision.

282.13 	Sec. 25. GRANT ADMINISTRATION.
 282.14 	Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the commissioner 
282.15 	of human services must not use any of the grant amounts appropriated under this article for 
282.16 	administrative costs.

282.17 	Sec. 26. APPROPRIATIONS GIVEN EFFECT ONCE.
 282.18 	If an appropriation or transfer in this article is enacted more than once during the 2025 
282.19 	regular session, the appropriation or transfer must be given effect once.

282.20 	Sec. 27. EXPIRATION OF UNCODIFIED LANGUAGE.
 282.21 	All uncodified language contained in this article expires on June 30, 2027, unless a 
282.22 	different expiration date is explicit.

282.23 	Sec. 28. EFFECTIVE DATE.
 282.24 	This article is effective July 1, 2025, unless a different effective date is specified.

282.25 	ARTICLE 12
282.26 	DIRECT CARE AND TREATMENT APPROPRIATIONS

282.27	Section 1. DIRECT CARE AND TREATMENT APPROPRIATIONS.
 	
282.28 	The sums shown in the columns marked "Appropriations" are appropriated to the 
282.29 	executive board of direct care and treatment and for the purposes specified in this article. 
282.30 	The appropriations are from the general fund, or another named fund, and are available for 
283.1 	the fiscal years indicated for each purpose. The figures "2026" and "2027" used in this 
283.2 	article mean that the appropriations listed under them are available for the fiscal year ending 
283.3 	June 30, 2026, or June 30, 2027, respectively. "The first year" is fiscal year 2026. "The 
283.4 	second year" is fiscal year 2027. "The biennium" is fiscal years 2026 and 2027.

283.5				APPROPRIATIONS
	
283.6				Available for the Year
	
283.7				Ending June 30
	
283.8					2026
		2027

283.9283.10
283.11
	Sec. 2. EXECUTIVE BOARD OF DIRECT 
CARE AND TREATMENT; TOTAL 
APPROPRIATION
 	$
	577,915,000
	$
	603,261,000
	
283.12 	The amounts that may be spent for each 
283.13 	purpose are specified in the following sections.

283.14
283.15	Sec. 3. MENTAL HEALTH AND SUBSTANCE 
ABUSE
 	$
	189,761,000
	$
	194,840,000

283.16	Sec. 4. COMMUNITY-BASED SERVICES
 	$
	13,927,000
	$
	14,170,000

283.17	Sec. 5. FORENSIC SERVICES
 	$
	160,239,000
	$
	164,094,000

283.18	Sec. 6. SEX OFFENDER PROGRAM
 	$
	128,050,000
	$
	131,351,000

283.19	Sec. 7. ADMINISTRATION
 	$
	85,938,000
	$
	98,806,000

283.20
283.21	Subdivision 1.Locked Psychiatric Residential 
Treatment Facility Planning
 					
283.22 	(a) $100,000 in fiscal year 2026 is for planning 
283.23 	a build out of a locked psychiatric residential 
283.24 	treatment facility operated by Direct Care and 
283.25 	Treatment. This is a onetime appropriation 
283.26 	and is available until June 30, 2027.
283.27 	(b) By March 1, 2026, the executive board 
283.28 	must report to the chairs and ranking minority 
283.29 	members of the legislative committees with 
283.30 	jurisdiction over human services finance and 
283.31 	policy on the plan developed using the 
283.32 	appropriation in this section to build out a 
283.33 	locked psychiatric residential treatment facility 
283.34 	(PRTF) operated by Direct Care and 
283.35 	Treatment.
284.1 	(c) The report must include but is not limited 
284.2 	to the following information:
284.3 	(1) the risks and benefits of locating the locked 
284.4 	PRTF in a metropolitan or rural location;
284.5 	(2) the estimated cost for the build out of the 
284.6 	locked PRTF;
284.7 	(3) the estimated ongoing cost of maintaining 
284.8 	the locked PRTF; and
284.9 	(4) the estimated amount of costs that can be 
284.10 	recouped from medical assistance, 
284.11 	MinnesotaCare, and private insurance 
284.12 	payments.

284.13
284.14
284.15	Subd. 2.Mentally Ill and Dangerous 
Commitment Reform Task Force Extension, 
Report, and Recommendations
 					
284.16 	$31,000 in fiscal year 2026 and $31,000 in 
284.17 	fiscal year 2027 are for the administrative 
284.18 	costs associated with the extension of the 
284.19 	Mentally Ill and Dangerous Commitment 
284.20 	Reform Task Force and preparing the 
284.21 	recommendations and report of the task force. 
284.22 	This is a onetime appropriation.

284.23	Subd. 3.Base Level Adjustment
 					
284.24 	The general fund base for this section is 
284.25 	$98,775,000 in fiscal year 2028 and 
284.26 	$98,775,000 in fiscal year 2029.

284.27 	Sec. 8. TRANSFER AUTHORITY.
 284.28 	(a) Money appropriated for budget programs in this article may be transferred between 
284.29 	budget programs and between years of the biennium with the approval of the commissioner 
284.30 	of management and budget.
284.31 	(b) Positions, salary money, and nonsalary administrative money may be transferred 
284.32 	within Direct Care and Treatment as the executive board considers necessary, with the 
284.33 	advance approval of the commissioner of management and budget. The executive board 
285.1 	shall report to the chairs and ranking minority members of the legislative committees with 
285.2 	jurisdiction over Direct Care and Treatment quarterly about transfers made under this section.
285.3 	(c) Beginning July 1, 2025, and until September 30, 2025, administrative money may 
285.4 	be transferred between Direct Care and Treatment and the Department of Human Services 
285.5 	as the commissioner and executive board deem necessary, with advance approval of the 
285.6 	commissioner of management and budget. The executive board shall report to the chairs 
285.7 	and ranking minority members of the legislative committees with jurisdiction over Direct 
285.8 	Care and Treatment about transfers made under this section.

285.9 	Sec. 9. APPROPRIATIONS GIVEN EFFECT ONCE.
 285.10 	If an appropriation or transfer in this article is enacted more than once during the 2025 
285.11 	regular session, the appropriation or transfer must be given effect once.

285.12 	Sec. 10. EXPIRATION OF UNCODIFIED LANGUAGE.
 285.13 	All uncodified language contained in this article expires on June 30, 2027, unless a 
285.14 	different expiration date is explicit.

285.15 	Sec. 11. EFFECTIVE DATE.
 285.16 	This article is effective July 1, 2025, unless a different effective date is specified.

285.17 	ARTICLE 13
285.18 	HEALTH APPROPRIATIONS

285.19	Section 1. HEALTH APPROPRIATIONS.
 	
285.20 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
285.21 	and for the purposes specified in this article. The appropriations are from the general fund, 
285.22 	or another named fund, and are available for the fiscal years indicated for each purpose. 
285.23 	The figures "2026" and "2027" used in this article mean that the appropriations listed under 
285.24 	them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively. 
285.25 	"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium" 
285.26 	is fiscal years 2026 and 2027.

285.27				APPROPRIATIONS
	
285.28				Available for the Year
	
285.29				Ending June 30
	
285.30					2026
		2027

285.31
285.32	Sec. 2. COMMISSIONER OF HEALTH; 
TOTAL APPROPRIATION
 	$
	2,592,000
	$
	2,496,000
	
286.1 	The amounts that may be spent for each 
286.2 	purpose are specified in the following sections.

286.3	Sec. 3. HEALTH IMPROVEMENT
 	$
	2,336,000
	$
	2,336,000
	
286.4 	Community Care Hub Grant
286.5 	$2,240,000 in fiscal year 2026 and $2,240,000 
286.6 	in fiscal year 2027 are for the community care 
286.7 	hub grant.

286.8	Sec. 4. HEALTH PROTECTION
 	$
	256,000
	$
	160,000

286.9	Subdivision 1.Beautywell Project
 					
286.10 	$100,000 in fiscal year 2026 and $100,000 in 
286.11 	fiscal year 2027 are for the Beautywell Project 
286.12 	for public awareness and education activities 
286.13 	to address issues of colorism, skin-lightening 
286.14 	products, and chemical exposures from 
286.15 	skin-lightening products. This is a onetime 
286.16 	appropriation and is available until June 30, 
286.17 	2027.

286.18	Subd. 2.Base Level Adjustment
 					
286.19 	The general fund base for this section is 
286.20 	$60,000 in fiscal year 2028 and $60,000 in 
286.21 	fiscal year 2029.

286.22 	Sec. 5. GRANT ADMINISTRATION.
 286.23 	Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the commissioner 
286.24 	of health must not use any of the grant amounts appropriated under this article for 
286.25 	administrative costs.

286.26 	Sec. 6. APPROPRIATIONS GIVEN EFFECT ONCE.
 286.27 	If an appropriation or transfer in this article is enacted more than once during the 2025 
286.28 	regular session, the appropriation or transfer must be given effect once.

287.1 	Sec. 7. EXPIRATION OF UNCODIFIED LANGUAGE.
 287.2 	All uncodified language contained in this article expires on June 30, 2027, unless a 
287.3 	different expiration date is explicit.

287.4 	Sec. 8. EFFECTIVE DATE.
 287.5 	This article is effective July 1, 2025, unless a different effective date is specified.

287.6 	ARTICLE 14
287.7 	OTHER AGENCY APPROPRIATIONS

287.8	Section 1. OTHER AGENCY APPROPRIATIONS.
 	
287.9 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
287.10 	and for the purposes specified in this article. The appropriations are from the general fund, 
287.11 	or another named fund, and are available for the fiscal years indicated for each purpose. 
287.12 	The figures "2026" and "2027" used in this article mean that the appropriations listed under 
287.13 	them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively. 
287.14 	"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium" 
287.15 	is fiscal years 2026 and 2027.

287.16				APPROPRIATIONS
	
287.17				Available for the Year
	
287.18				Ending June 30
	
287.19					2026
		2027

287.20	Sec. 2. COUNCIL ON DISABILITY
 	$
	2,432,000
	$
	2,457,000
	
287.21 	Legislative Task Force On Guardianship 
287.22 	Funding Cancellation
287.23 	Any unencumbered and unexpended amount 
287.24 	of the fiscal year 2025 appropriation 
287.25 	referenced in Laws 2024, chapter 127, article 
287.26 	53, section 4, for the Legislative Task Force 
287.27 	on Guardianship, estimated to be $400,000, 
287.28 	is canceled.

287.29
287.30
287.31	Sec. 3. OFFICE OF THE OMBUDSMAN FOR 
MENTAL HEALTH AND DEVELOPMENTAL 
DISABILITIES
 	$
	3,706,000
	$
	3,765,000

287.32
287.33	Sec. 4. OFFICE OF ADMINISTRATIVE 
HEARINGS
 	$
	272,000
	$
	262,000

287.34	Sec. 5. MINNESOTA HUMANITIES CENTER
 	$
	68,000
	$
	-0-
	
288.1 	YouLead2025
288.2 	$68,000 in fiscal year 2026 is for a grant to 
288.3 	Global Synergy Group, a 501(c)(3) nonprofit 
288.4 	organization, to operate the YouLead2025 
288.5 	program. This is a onetime appropriation. 
288.6 	Notwithstanding Minnesota Statutes, section 
288.7 	16B.98, subdivision 14, the Board of Directors 
288.8 	of the Minnesota Humanities Center must not 
288.9 	use any of the grant amounts for administrative 
288.10 	costs.

288.11
288.12	Sec. 6. BOARD OF BEHAVIORAL HEALTH 
AND THERAPY
 	$
	2,000
	$
	1,000
	
288.13 	The general fund base for this section is $0 in 
288.14 	fiscal year 2028 and $0 in fiscal year 2029.

288.15	Sec. 7. BOARD OF MEDICAL PRACTICE
 	$
	3,000
	$
	1,000
	
288.16 	The general fund base for this section is $0 in 
288.17 	fiscal year 2028 and $0 in fiscal year 2029.

288.18	Sec. 8. BOARD OF NURSING
 	$
	4,000
	$
	2,000
	
288.19 	The general fund base for this section is $0 in 
288.20 	fiscal year 2028 and $0 in fiscal year 2029.

288.21
288.22	Sec. 9. COMMISSIONER OF CHILDREN, 
YOUTH, AND FAMILIES
 	$
	100,000
	$
	100,000

288.23
288.24	Subdivision 1.Families and Children Opiate 
Epidemic Grant to Beltrami County
 					
288.25 	$100,000 in fiscal year 2026 and $100,000 in 
288.26 	fiscal year 2027 are for a grant to Beltrami 
288.27 	County to support families and children 
288.28 	affected by the opiate epidemic who are in the 
288.29 	child welfare system or at risk of entering the 
288.30 	child welfare system. This is a onetime 
288.31 	appropriation.

289.1	Subd. 2.General Fund Base
 					
289.2 	The general fund base for this section is $0 in 
289.3 	fiscal year 2028 and $0 in fiscal year 2029.

289.4 	Sec. 10. APPROPRIATIONS GIVEN EFFECT ONCE.
 289.5 	If an appropriation or transfer in this article is enacted more than once during the 2025 
289.6 	regular session, the appropriation or transfer must be given effect once.

289.7 	Sec. 11. EXPIRATION OF UNCODIFIED LANGUAGE.
 289.8 	All uncodified language contained in this article expires on June 30, 2027, unless a 
289.9 	different expiration date is explicit.

289.10 	Sec. 12. EFFECTIVE DATE.
 289.11 	This article is effective July 1, 2025, unless a different effective date is specified.

	ARTICLE 1	AGING AND OLDER ADULT SERVICES........	Page.Ln 2.31	
	ARTICLE 2	DISABILITY SERVICES........	Page.Ln 34.11	
	ARTICLE 3	SUBSTANCE USE DISORDER TREATMENT........	Page.Ln 125.9	
	ARTICLE 4	HOUSING SUPPORTS........	Page.Ln 167.1	
	ARTICLE 5	HEALTH CARE........	Page.Ln 167.21	
	ARTICLE 6	DIRECT CARE AND TREATMENT........	Page.Ln 178.1	
	ARTICLE 7	DEPARTMENT OF DIRECT CARE AND TREATMENT ESTABLISHMENT........	Page.Ln 183.1	
	ARTICLE 8	DEPARTMENT OF DIRECT CARE AND TREATMENT CONFORMING CHANGES........	Page.Ln 195.1	
	ARTICLE 9	DEPARTMENT OF HEALTH........	Page.Ln 220.17	
	ARTICLE 10	MISCELLANEOUS........	Page.Ln 243.20	
	ARTICLE 11	DEPARTMENT OF HUMAN SERVICES APPROPRIATIONS........	Page.Ln 245.14	
	ARTICLE 12	DIRECT CARE AND TREATMENT APPROPRIATIONS........	Page.Ln 282.25	
	ARTICLE 13	HEALTH APPROPRIATIONS........	Page.Ln 285.17	
	ARTICLE 14	OTHER AGENCY APPROPRIATIONS........	Page.Ln 287.6	

APPENDIX 

Repealed Minnesota Statutes: S3054-2 

144A.071 MORATORIUM ON CERTIFICATION OF NURSING HOME BEDS.Subd. 4c.Exceptions for replacement beds after June 30, 2003. 
(a) The commissioner of health, in coordination with the commissioner of human services, may approve the renovation, replacement, upgrading, or relocation of a nursing home or boarding care home, under the following conditions: 

(1) to license and certify an 80-bed city-owned facility in Nicollet County to be constructed on the site of a new city-owned hospital to replace an existing 85-bed facility attached to a hospital that is also being replaced. The threshold allowed for this project under section 144A.073 shall be the maximum amount available to pay the additional medical assistance costs of the new facility; 

(2) to license and certify 29 beds to be added to an existing 69-bed facility in St. Louis County, provided that the 29 beds must be transferred from active or layaway status at an existing facility in St. Louis County that had 235 beds on April 1, 2003. 

The licensed capacity at the 235-bed facility must be reduced to 206 beds, but the payment rate at that facility shall not be adjusted as a result of this transfer. The operating payment rate of the facility adding beds after completion of this project shall be the same as it was on the day prior to the day the beds are licensed and certified. This project shall not proceed unless it is approved and financed under the provisions of section 144A.073; 

(3) to license and certify a new 60-bed facility in Austin, provided that: (i) 45 of the new beds are transferred from a 45-bed facility in Austin under common ownership that is closed and 15 of the new beds are transferred from a 182-bed facility in Albert Lea under common ownership; (ii) the commissioner of human services is authorized by the 2004 legislature to negotiate budget-neutral planned nursing facility closures; and (iii) money is available from planned closures of facilities under common ownership to make implementation of this clause budget-neutral to the state. The bed capacity of the Albert Lea facility shall be reduced to 167 beds following the transfer. Of the 60 beds at the new facility, 20 beds shall be used for a special care unit for persons with Alzheimer's disease or related dementias; 

(4) to license and certify up to 80 beds transferred from an existing state-owned nursing facility in Cass County to a new facility located on the grounds of the Ah-Gwah-Ching campus. The operating cost payment rates for the new facility shall be determined based on the interim and settle-up payment provisions of section 256R.27 and the reimbursement provisions of chapter 256R. The property payment rate for the first three years of operation shall be $35 per day. For subsequent years, the property payment rate of $35 per day shall be adjusted for inflation as provided in section 256B.434, subdivision 4, paragraph (c), as long as the facility has a contract under section 256B.434; 

(5) to initiate a pilot program to license and certify up to 80 beds transferred from an existing county-owned nursing facility in Steele County relocated to the site of a new acute care facility as part of the county's Communities for a Lifetime comprehensive plan to create innovative responses to the aging of its population. Upon relocation to the new site, the nursing facility shall delicense 28 beds. The payment rate for external fixed costs for the new facility shall be increased by an amount as calculated according to items (i) to (v): 

(i) compute the estimated decrease in medical assistance residents served by the nursing facility by multiplying the decrease in licensed beds by the historical percentage of medical assistance resident days; 

(ii) compute the annual savings to the medical assistance program from the delicensure of 28 beds by multiplying the anticipated decrease in medical assistance residents, determined in item (i), by the existing facility's weighted average payment rate multiplied by 365; 

(iii) compute the anticipated annual costs for community-based services by multiplying the anticipated decrease in medical assistance residents served by the nursing facility, determined in item (i), by the average monthly elderly waiver service costs for individuals in Steele County multiplied by 12; 

(iv) subtract the amount in item (iii) from the amount in item (ii); 

(v) divide the amount in item (iv) by an amount equal to the relocated nursing facility's occupancy factor under section 256B.431, subdivision 3f, paragraph (c), multiplied by the historical percentage of medical assistance resident days; and 

(6) to consolidate and relocate nursing facility beds to a new site in Goodhue County and to integrate these services with other community-based programs and services under a communities for a lifetime pilot program and comprehensive plan to create innovative responses to the aging of its population. Two nursing facilities, one for 84 beds and one for 65 beds, in the city of Red Wing licensed on July 1, 2015, shall be consolidated into a newly renovated 64-bed nursing facility resulting in the delicensure of 85 beds. Notwithstanding the carryforward of the approval authority in section 144A.073, subdivision 11, the funding approved in April 2009 by the commissioner of health for a project in Goodhue County shall not carry forward. The closure of the 85 beds shall not be eligible for a planned closure rate adjustment under section 256R.40. The construction project permitted in this clause shall not be eligible for a threshold project rate adjustment under section 256B.434, subdivision 4f. The payment rate for external fixed costs for the new facility shall be increased by an amount as calculated according to items (i) to (vi): 

(i) compute the estimated decrease in medical assistance residents served by both nursing facilities by multiplying the difference between the occupied beds of the two nursing facilities for the reporting year ending September 30, 2009, and the projected occupancy of the facility at 95 percent occupancy by the historical percentage of medical assistance resident days; 

(ii) compute the annual savings to the medical assistance program from the delicensure by multiplying the anticipated decrease in the medical assistance residents, determined in item (i), by the hospital-owned nursing facility weighted average payment rate multiplied by 365; 

(iii) compute the anticipated annual costs for community-based services by multiplying the anticipated decrease in medical assistance residents served by the facilities, determined in item (i), by the average monthly elderly waiver service costs for individuals in Goodhue County multiplied by 12; 

(iv) subtract the amount in item (iii) from the amount in item (ii); 

(v) multiply the amount in item (iv) by 57.2 percent; and 

(vi) divide the difference of the amount in item (iv) and the amount in item (v) by an amount equal to the relocated nursing facility's occupancy factor under section 256B.431, subdivision 3f, paragraph (c), multiplied by the historical percentage of medical assistance resident days. 

(b) Projects approved under this subdivision shall be treated in a manner equivalent to projects approved under subdivision 4a. 

245A.042 HOME AND COMMUNITY-BASED SERVICES; ADDITIONAL STANDARDS AND PROCEDURES.Subd. 2.Modified application procedures. 
(a) Applicants seeking chapter 245D licensure who meet the following criteria are subject to modified application procedures: 

(1) the applicant holds a chapter 245B license issued on or before December 31, 2012, at the time of application; 

(2) the applicant's chapter 245B license or licenses are in substantial compliance according to the licensing standards in this chapter and chapter 245B; and 

(3) the commissioner has conducted at least one on-site inspection of the chapter 245B license or licenses within the two-year period before submitting the chapter 245D license application. 

For purposes of this subdivision, "substantial compliance" means the commissioner has not issued a sanction according to section 245A.07 against any chapter 245B license held by the applicant or made the chapter 245B license or licenses conditional according to section 245A.06 within the 12-month period before submitting the application for chapter 245D licensure. 

(b) The modified application procedures mean the commissioner must accept the applicant's attestation of compliance with certain requirements in lieu of providing information to the commissioner for evaluation that is otherwise required when seeking chapter 245D licensure. 

Subd. 3.Implementation. 
(a) The commissioner shall implement the responsibilities of this chapter according to the timelines in paragraphs (b) and (c) only within the limits of available appropriations or other administrative cost recovery methodology. 

(b) The licensure of home and community-based services according to this section shall be implemented January 1, 2014. License applications shall be received and processed on a phased-in schedule as determined by the commissioner beginning July 1, 2013. Licenses will be issued thereafter upon the commissioner's determination that the application is complete according to section 245A.04. 

(c) Within the limits of available appropriations or other administrative cost recovery methodology, implementation of compliance monitoring must be phased in after January 1, 2014. 

(1) Applicants who do not currently hold a license issued under chapter 245B must receive an initial compliance monitoring visit after 12 months of the effective date of the initial license for the purpose of providing technical assistance on how to achieve and maintain compliance with the applicable law or rules governing the provision of home and community-based services under chapter 245D. If during the review the commissioner finds that the license holder has failed to achieve compliance with an applicable law or rule and this failure does not imminently endanger the health, safety, or rights of the persons served by the program, the commissioner may issue a licensing review report with recommendations for achieving and maintaining compliance. 

(2) Applicants who do currently hold a license issued under this chapter must receive a compliance monitoring visit after 24 months of the effective date of the initial license. 

(d) Nothing in this subdivision shall be construed to limit the commissioner's authority to suspend or revoke a license or issue a fine at any time under section 245A.07, or issue correction orders and make a license conditional for failure to comply with applicable laws or rules under section 245A.06, based on the nature, chronicity, or severity of the violation of law or rule and the effect of the violation on the health, safety, or rights of persons served by the program. 

(e) License holders governed under chapter 245D must ensure compliance with the following requirements within the stated timelines: 

(1) service initiation and service planning requirements must be met at the next annual meeting of the person's support team or by January 1, 2015, whichever is later, for the following: 

(i) provision of a written notice that identifies the service recipient rights and an explanation of those rights as required under section 245D.04, subdivision 1; 

(ii) service planning for basic support services as required under section 245D.07, subdivision 2; and 

(iii) service planning for intensive support services under section 245D.071, subdivisions 3 and 4; 

(2) staff orientation to program requirements as required under section 245D.09, subdivision 4, for staff hired before January 1, 2014, must be met by January 1, 2015. The license holder may otherwise provide documentation verifying these requirements were met before January 1, 2014; 

(3) development of policy and procedures as required under section 245D.11, must be completed no later than August 31, 2014; 

(4) written or electronic notice and copies of policies and procedures must be provided to all persons or their legal representatives and case managers as required under section 245D.10, subdivision 4, paragraphs (b) and (c), by September 15, 2014, or within 30 days of development of the required policies and procedures, whichever is earlier; and 

(5) all employees must be informed of the revisions and training must be provided on implementation of the revised policies and procedures as required under section 245D.10, subdivision 4, paragraph (d), by September 15, 2014, or within 30 days of development of the required policies and procedures, whichever is earlier. 

Subd. 4.Stakeholder consultation. 
The commissioner shall consult with the existing stakeholder group established as part of the provider standards process to gather input related to the development of an administrative cost recovery methodology to implement the provisions in chapter 245D. 

245G.01 DEFINITIONS.Subd. 20d.Skilled treatment services. 
"Skilled treatment services" has the meaning provided in section 254B.01, subdivision 10. 

245G.07 TREATMENT SERVICE.Subd. 2.Additional treatment service. 
A license holder may provide or arrange the following additional treatment service as a part of the client's individual treatment plan: 

(1) relationship counseling provided by a qualified professional to help the client identify the impact of the client's substance use disorder on others and to help the client and persons in the client's support structure identify and change behaviors that contribute to the client's substance use disorder; 

(2) therapeutic recreation to allow the client to participate in recreational activities without the use of mood-altering chemicals and to plan and select leisure activities that do not involve the inappropriate use of chemicals; 

(3) stress management and physical well-being to help the client reach and maintain an appropriate level of health, physical fitness, and well-being; 

(4) living skills development to help the client learn basic skills necessary for independent living; 

(5) employment or educational services to help the client become financially independent; 

(6) socialization skills development to help the client live and interact with others in a positive and productive manner; 

(7) room, board, and supervision at the treatment site to provide the client with a safe and appropriate environment to gain and practice new skills; and 

(8) peer recovery support services must be provided by a recovery peer qualified according to section 245I.04, subdivision 18. Peer recovery support services must be provided according to sections 254B.05, subdivision 5, and 254B.052. 

246B.01 MINNESOTA SEX OFFENDER PROGRAM; DEFINITIONS.Subd. 2.Executive board. 
"Executive board" has the meaning given in section 246C.015. 

246C.015 DEFINITIONS.Subd. 5a.Direct Care and Treatment. 
"Direct Care and Treatment" means the agency of Direct Care and Treatment established under this chapter. 

Subd. 6.Executive board. 
"Executive board" means the Direct Care and Treatment executive board established under section 246C.06. 

246C.06 EXECUTIVE BOARD; MEMBERSHIP; GOVERNANCE.Subdivision 1.Establishment. 
The Direct Care and Treatment executive board is established. 

Subd. 2.Membership. 
(a) The Direct Care and Treatment executive board consists of nine members with seven voting members and two nonvoting members. The seven voting members must include six members appointed by the governor with the advice and consent of the senate in accordance with paragraph (b) and the commissioner of human services or a designee. The two nonvoting members must be appointed in accordance with paragraph (c). Section 15.0597 applies to all executive board appointments except for the commissioner of human services. 

(b) The executive board voting members appointed by the governor must meet the following qualifications: 

(1) one member must be a licensed physician who is a psychiatrist or has experience in serving behavioral health patients; 

(2) two members must have experience serving on a hospital or nonprofit board; and 

(3) three members must have experience working: (i) in the delivery of behavioral health services or care coordination or in traditional healing practices; (ii) as a licensed health care professional; (iii) within health care administration; or (iv) with residential services. 

(c) The executive board nonvoting members must be appointed as follows: 

(1) one member appointed by the Association of Counties; and 

(2) one member who has an active role as a union representative representing staff at Direct Care and Treatment appointed by joint representatives of the following unions: American Federation of State, County and Municipal Employees (AFSCME); Minnesota Association of Professional Employees (MAPE); Minnesota Nurses Association (MNA); Middle Management Association (MMA); and State Residential Schools Education Association (SRSEA). 

(d) Membership on the board must include representation from outside the seven-county metropolitan area, as defined in section 473.121, subdivision 2. 

(e) A voting member of the executive board must not be or must not have been within one year prior to appointment: (1) an employee of Direct Care and Treatment; (2) an employee of a county, including a county commissioner; (3) an active employee or representative of a labor union that represents employees of Direct Care and Treatment; or (4) a member of the state legislature. This paragraph does not apply to the nonvoting members or the commissioner of human services or designee. 

Subd. 3.Procedures. 
Except as otherwise provided in this section, the membership terms and removal and filling of vacancies for the executive board are governed by section 15.0575. 

Subd. 4.Compensation. 
(a) Notwithstanding section 15.0575, subdivision 3, paragraph (a), the nonvoting members of the executive board must not receive daily compensation for executive board activities. Nonvoting members of the executive board may receive expenses in the same manner and amount as authorized by the commissioner's plan adopted under section 43A.18, subdivision 2. Nonvoting members who, as a result of time spent attending board meetings, incur child care expenses that would not otherwise have been incurred may be reimbursed for those expenses upon board authorization. 

(b) Notwithstanding section 15.0575, subdivision 3, paragraph (a), the Compensation Council under section 15A.082 must determine the compensation for voting members of the executive board per day spent on executive board activities authorized by the executive board. Voting members of the executive board may also receive the expenses in the same manner and amount as authorized by the commissioner's plan adopted under section 43A.18, subdivision 2. Voting members who, as a result of time spent attending board meetings, incur child care expenses that would not otherwise have been incurred may be reimbursed for those expenses upon board authorization. 

(c) The commissioner of management and budget must publish the daily compensation rate for voting members of the executive board determined under paragraph (b) on the Department of Management and Budget's website. 

(d) Voting members of the executive board must adopt internal standards prescribing what constitutes a day spent on board activities for the purposes of making payments authorized under paragraph (b). 

(e) All other requirements under section 15.0575, subdivision 3, apply to the compensation of executive board members. 

Subd. 5.Acting chair; officers. 
(a) The governor shall designate one member from the voting membership appointed by the governor as acting chair of the executive board. 

(b) At the first meeting of the executive board, the executive board must elect a chair from among the voting membership appointed by the governor. 

(c) The executive board must annually elect a chair from among the voting membership appointed by the governor. 

(d) The executive board must elect officers from among the voting membership appointed by the governor. The elected officers shall serve for one year. 

Subd. 6.Terms. 
(a) Except for the commissioner of human services, executive board members must not serve more than two consecutive terms unless service beyond two consecutive terms is approved by the majority of voting members. The commissioner of human services or a designee shall serve until replaced by the governor. 

(b) An executive board member may resign at any time by giving written notice to the executive board. 

(c) The initial term of the member appointed under subdivision 2, paragraph (b), clause (1), is two years. The initial term of the members appointed under subdivision 2, paragraph (b), clause (2), is three years. The initial term of the members appointed under subdivision 2, paragraph (b), clause (3), and the members appointed under subdivision 2, paragraph (c), is four years. 

(d) After the initial term, the term length of all appointed executive board members is four years. 

Subd. 7.Conflicts of interest. 
Executive board members must recuse themselves from discussion of and voting on an official matter if the executive board member has a conflict of interest. A conflict of interest means an association, including a financial or personal association, that has the potential to bias or have the appearance of biasing an executive board member's decision in matters related to Direct Care and Treatment or the conduct of activities under this chapter. 

Subd. 8.Meetings. 
The executive board must meet at least four times per fiscal year at a place and time determined by the executive board. 

Subd. 9.Quorum. 
A majority of the voting members of the executive board constitutes a quorum. The affirmative vote of a majority of the voting members of the executive board is necessary and sufficient for action taken by the executive board. 

Subd. 10.Immunity; indemnification. 
(a) Members of the executive board are immune from civil liability for any act or omission occurring within the scope of the performance of their duties under this chapter. 

(b) When performing executive board duties or actions, members of the executive board are employees of the state for purposes of indemnification under section 3.736, subdivision 9. 

246C.07 POWERS AND DUTIES OF EXECUTIVE BOARD.Subd. 4.Creation of bylaws. 
The board may establish bylaws governing its operations and the operations of Direct Care and Treatment in accordance with this chapter. 

Subd. 5.Performance of chief executive officer. 
The governor may request that the executive board review the performance of the chief executive officer at any time. Within 14 days of receipt of the request, the board must meet and conduct a performance review as specifically requested by the governor. During the performance review, a representative of the governor must be included as a voting member of the board for the purpose of the board's discussions and decisions regarding the governor's request. The board must establish a performance improvement plan as necessary or take disciplinary or other corrective action, including dismissal. The executive board must report to the governor on action taken by the board, including an explanation if no action is deemed necessary. 

252.021 DEFINITION.Subd. 2.Executive board. 
"Executive board" has the meaning given in section 246C.015. 

253.195 DEFINITIONS.Subd. 2.Executive board. 
"Executive board" has the meaning given in section 246C.015. 

253B.02 DEFINITIONS.Subd. 7b.Executive board. 
"Executive board" has the meaning given in section 246C.015. 

253D.02 DEFINITIONS.Subd. 7a.Executive board. 
"Executive board" has the meaning given under section 246C.015. 

254B.01 DEFINITIONS.Subd. 5.Local agency. 
"Local agency" means the agency designated by a board of county commissioners, a local social services agency, or a human services board authorized under section 254B.03, subdivision 1, to determine financial eligibility for the behavioral health fund. 

Subd. 15.Executive board. 
"Executive board" has the meaning given in section 246C.015. 

254B.18 SAFE RECOVERY SITES START-UP AND CAPACITY-BUILDING GRANTS.
(a) The commissioner of human services must establish start-up and capacity-building grants for current or prospective harm reduction organizations to promote health, wellness, safety, and recovery to people who are in active stages of substance use disorder. Grants must be used to establish safe recovery sites that offer harm reduction services and supplies, including but not limited to: 

(1) safe injection spaces; 

(2) sterile needle exchange; 

(3) opiate antagonist rescue kits; 

(4) fentanyl and other drug testing; 

(5) street outreach; 

(6) educational and referral services; 

(7) health, safety, and wellness services; and 

(8) access to hygiene and sanitation. 

(b) The commissioner must conduct local community outreach and engagement in collaboration with newly established safe recovery sites. The commissioner must evaluate the efficacy of safe recovery sites and collect data to measure health-related and public safety outcomes. 

(c) The commissioner must prioritize grant applications for organizations that are culturally specific or culturally responsive and that commit to serving individuals from communities that are disproportionately impacted by the opioid epidemic, including: 

(1) Native American, American Indian, and Indigenous communities; and 

(2) Black, African American, and African-born communities. 

(d) For purposes of this section, a "culturally specific" or "culturally responsive" organization is an organization that is designed to address the unique needs of individuals who share a common language, racial, ethnic, or social background, and is governed with significant input from individuals of that specific background. 

256.045 ADMINISTRATIVE AND JUDICIAL REVIEW OF HUMAN SERVICES MATTERS.Subd. 1a.Direct Care and Treatment executive board or executive board. 
For purposes of this section, "Direct Care and Treatment executive board" or "executive board" means the Direct Care and Treatment executive board established under section 246C.06. 

256G.02 DEFINITIONS.Subd. 5a.Direct Care and Treatment executive board or executive board. 
"Direct Care and Treatment executive board" or "executive board" means the Direct Care and Treatment executive board established under section 246C.06. 

256R.02 DEFINITIONS.Subd. 38.Prior system operating cost payment rate. 
"Prior system operating cost payment rate" means the operating cost payment rate in effect on December 31, 2015, under Minnesota Rules and Minnesota Statutes, inclusive of health insurance, plus property insurance costs from external fixed costs, minus any rate increases allowed under Minnesota Statutes 2015 Supplement, section 256B.441, subdivision 55a. 

256R.12 COST ALLOCATION.Subd. 10.Allocation of self-insurance costs. 
For the rate year beginning on July 1, 1998, a group of nursing facilities related by common ownership that self-insures group health, dental, or life insurance may allocate its directly identified costs of self-insuring its Minnesota nursing facility workers among those nursing facilities in the group that are reimbursed under this chapter. The method of cost allocation shall be based on the ratio of each nursing facility's total allowable salaries and wages to that of the nursing facility group's total allowable salaries and wages, then similarly allocated within each nursing facility's operating cost categories. The costs associated with the administration of the group's self-insurance plan must remain classified in the nursing facility's administrative cost category. A written request of the nursing facility group's election to use this alternate method of allocation of self-insurance costs must be received by the commissioner no later than May 1, 1998, to take effect July 1, 1998, or those self-insurance costs shall continue to be allocated under the existing cost allocation methods. Once a nursing facility group elects this method of cost allocation for its group health, dental, or life insurance self-insurance costs, it shall remain in effect until such time as the group no longer self-insures these costs. 

256R.23 TOTAL CARE-RELATED PAYMENT RATES.Subd. 6.Payment rate limit reduction. 
No facility shall be subject in any rate year to a care-related payment rate limit reduction greater than five percent of the median determined in subdivision 4. 

256R.36 HOLD HARMLESS.
No nursing facility's operating payment rate, plus its employer health insurance costs portion of the external fixed costs payment rate, will be less than its prior system operating cost payment rate. 

256R.40 NURSING FACILITY VOLUNTARY CLOSURE; ALTERNATIVES.Subdivision 1.Definitions. 
(a) The definitions in this subdivision apply to this section. 

(b) "Closure" means the cessation of operations of a nursing facility and delicensure and decertification of all beds within the facility. 

(c) "Closure plan" means a plan to close a nursing facility and reallocate a portion of the resulting savings to provide planned closure rate adjustments at other facilities. 

(d) "Commencement of closure" means the date on which residents and designated representatives are notified of a planned closure as provided in section 144A.161, subdivision 5a, as part of an approved closure plan. 

(e) "Completion of closure" means the date on which the final resident of the nursing facility designated for closure in an approved closure plan is discharged from the facility or the date that beds from a partial closure are delicensed and decertified. 

(f) "Partial closure" means the delicensure and decertification of a portion of the beds within the facility. 

(g) "Planned closure rate adjustment" means an increase in a nursing facility's operating rates resulting from a planned closure or a planned partial closure of another facility. 

Subd. 2.Applications for planned closure rate. 
(a) To be considered for approval of a planned closure, an application must include: 

(1) a description of the proposed closure plan, which must include identification of the facility or facilities to receive a planned closure rate adjustment; 

(2) the proposed timetable for any proposed closure, including the proposed dates for announcement to residents, commencement of closure, and completion of closure; 

(3) if available, the proposed relocation plan for current residents of any facility designated for closure. If a relocation plan is not available, the application must include a statement agreeing to develop a relocation plan designed to comply with section 144A.161; 

(4) a description of the relationship between the nursing facility that is proposed for closure and the nursing facility or facilities proposed to receive the planned closure rate adjustment. If these facilities are not under common ownership, copies of any contracts, purchase agreements, or other documents establishing a relationship or proposed relationship must be provided; and 

(5) documentation, in a format approved by the commissioner, that all the nursing facilities receiving a planned closure rate adjustment under the plan have accepted joint and several liability for recovery of overpayments under section 256B.0641, subdivision 2, for the facilities designated for closure under the plan. 

(b) The application must also address the criteria listed in subdivision 3. 

Subd. 3.Criteria for review of application. 
In reviewing and approving closure proposals, the commissioner shall consider, but not be limited to, the following criteria: 

(1) improved quality of care and quality of life for consumers; 

(2) closure of a nursing facility that has a poor physical plant; 

(3) the existence of excess nursing facility beds, measured in terms of beds per thousand persons aged 85 or older. The excess must be measured in reference to: 

(i) the county in which the facility is located. A facility in a county that is in the lowest quartile of counties with reference to beds per thousand persons aged 85 or older is not in an area of excess capacity; 

(ii) the county and all contiguous counties; 

(iii) the region in which the facility is located; or 

(iv) the facility's service area. The facility shall indicate in its application the service area it believes is appropriate for this measurement; 

(4) low-occupancy rates, provided that the unoccupied beds are not the result of a personnel shortage. In analyzing occupancy rates, the commissioner shall examine waiting lists in the applicant facility and at facilities in the surrounding area, as determined under clause (3); 

(5) evidence of coordination between the community planning process and the facility application. If the planning group does not support a level of nursing facility closures that the commissioner considers to be reasonable, the commissioner may approve a planned closure proposal without its support; 

(6) proposed usage of funds available from a planned closure rate adjustment for care-related purposes; 

(7) innovative use planned for the closed facility's physical plant; 

(8) evidence that the proposal serves the interests of the state; and 

(9) evidence of other factors that affect the viability of the facility, including excessive nursing pool costs. 

Subd. 4.Review and approval of applications. 
(a) The commissioner, in consultation with the commissioner of health, shall approve or deny an application within 30 days after receiving it. The commissioner may appoint an advisory review panel composed of representatives of counties, consumers, and providers to review proposals and provide comments and recommendations to the committee. The commissioners of human services and health shall provide staff and technical assistance to the committee for the review and analysis of proposals. 

(b) Approval of a planned closure expires 18 months after approval by the commissioner unless commencement of closure has begun. 

(c) The commissioner may change any provision of the application to which the applicant, the regional planning group, and the commissioner agree. 

Subd. 5.Planned closure rate adjustment. 
(a) The commissioner shall calculate the amount of the planned closure rate adjustment available under subdivision 6 according to clauses (1) to (4): 

(1) the amount available is the net reduction of nursing facility beds multiplied by $2,080; 

(2) the total number of beds in the nursing facility or facilities receiving the planned closure rate adjustment must be identified; 

(3) capacity days are determined by multiplying the number determined under clause (2) by 365; and 

(4) the planned closure rate adjustment is the amount available in clause (1), divided by capacity days determined under clause (3). 

(b) A planned closure rate adjustment under this section is effective on the first day of the month of January or July, whichever occurs immediately following completion of closure of the facility designated for closure in the application and becomes part of the nursing facility's external fixed payment rate. 

(c) Upon the request of a closing facility, the commissioner must allow the facility a closure rate adjustment as provided under section 144A.161, subdivision 10. 

(d) A facility that has received a planned closure rate adjustment may reassign it to another facility that is under the same ownership at any time within three years of its effective date. The amount of the adjustment is computed according to paragraph (a). 

(e) If the per bed dollar amount specified in paragraph (a), clause (1), is increased, the commissioner shall recalculate planned closure rate adjustments for facilities that delicense beds under this section on or after July 1, 2001, to reflect the increase in the per bed dollar amount. The recalculated planned closure rate adjustment is effective from the date the per bed dollar amount is increased. 

Subd. 6.Assignment of closure rate to another facility. 
A facility or facilities reimbursed under this chapter with a closure plan approved by the commissioner under subdivision 4 may assign a planned closure rate adjustment to another facility or facilities that are not closing or in the case of a partial closure, to the facility undertaking the partial closure. A facility may also elect to have a planned closure rate adjustment shared equally by the five nursing facilities with the lowest total operating payment rates in the state development region designated under section 462.385, in which the facility that is closing is located. The planned closure rate adjustment must be calculated under subdivision 5. Facilities that delicense beds without a closure plan, or whose closure plan is not approved by the commissioner, are not eligible to assign a planned closure rate adjustment under subdivision 5, unless they: (1) are delicensing five or fewer beds, or less than six percent of their total licensed bed capacity, whichever is greater; (2) are located in a county in the top three quartiles of beds per 1,000 persons aged 65 or older; and (3) have not delicensed beds in the prior three months. Facilities meeting these criteria are eligible to assign the amount calculated under subdivision 5 to themselves. If a facility is delicensing the greater of six or more beds, or six percent or more of its total licensed bed capacity, and does not have an approved closure plan or is not eligible for the adjustment under subdivision 5, the commissioner shall calculate the amount the facility would have been eligible to assign under subdivision 5, and shall use this amount to provide equal rate adjustments to the five nursing facilities with the lowest total operating payment rates in the state development region designated under section 462.385, in which the facility that delicensed beds is located. 

Subd. 7.Other rate adjustments. 
Facilities receiving planned closure rate adjustments remain eligible for any applicable rate adjustments provided under this chapter. 

256R.41 SINGLE-BED ROOM INCENTIVE.
(a) Beginning July 1, 2005, the operating payment rate for nursing facilities reimbursed under this chapter shall be increased by 20 percent multiplied by the ratio of the number of new single-bed rooms created divided by the number of active beds on July 1, 2005, for each bed closure that results in the creation of a single-bed room after July 1, 2005. The commissioner may implement rate adjustments for up to 3,000 new single-bed rooms each year. For eligible bed closures for which the commissioner receives a notice from a facility that a bed has been delicensed and a new single-bed room has been established, the rate adjustment in this paragraph shall be effective on either the first day of the month of January or July, whichever occurs first following the date of the bed delicensure. 

(b) A nursing facility is prohibited from discharging residents for purposes of establishing single-bed rooms. A nursing facility must submit documentation to the commissioner in a form prescribed by the commissioner, certifying the occupancy status of beds closed to create single-bed rooms. In the event that the commissioner determines that a facility has discharged a resident for purposes of establishing a single-bed room, the commissioner shall not provide a rate adjustment under paragraph (a). 

256R.481 RATE ADJUSTMENTS FOR BORDER CITY FACILITIES.
(a) The commissioner shall allow each nonprofit nursing facility located within the boundaries of the city of Breckenridge or Moorhead prior to January 1, 2015, to apply once annually for a rate add-on to the facility's external fixed costs payment rate. 

(b) A facility seeking an add-on to its external fixed costs payment rate under this section must apply annually to the commissioner to receive the add-on. A facility must submit the application within 60 calendar days of the effective date of any add-on under this section. The commissioner may waive the deadlines required by this paragraph under extraordinary circumstances. 

(c) The commissioner shall provide the add-on to each eligible facility that applies by the application deadline. 

(d) The add-on to the external fixed costs payment rate is the difference on January 1 of the median total payment rate for case mix classification PA1 of the nonprofit facilities located in an adjacent city in another state and in cities contiguous to the adjacent city minus the eligible nursing facility's total payment rate for case mix classification PA1 as determined under section 256R.22, subdivision 4. 

Repealed Minnesota Session Laws: S3054-2 

Laws 2023, chapter 59, article 3, section 11 by Laws 2025, First Special Session chapter 9, article 2, section 70
Sec. 11. DIRECT CARE PROVIDER PREMIUMS THROUGH HCBS WORKFORCE INCENTIVE FUND. 
(a) $20,000,000 in fiscal year 2026 is added to the base appropriation from the family and medical benefit account to the commissioner of human services to provide reimbursement for premiums incurred for the paid family and medical leave program under this chapter. Funds shall be administered through the home and community-based workforce incentive fund under Minnesota Statutes, section 256.4764.  

(b) The commissioner of employment and economic development shall share premium payment data collected under this chapter to assist the commissioner of human services in the verification process of premiums paid under this section. 

(c) This amount is for the purposes of Minnesota Statutes, section 256.4764. This is a one-time appropriation and is available until June 30, 2027.  

Laws 2024, chapter 125, article 5, section 40
Sec. 40. DIRECT CARE AND TREATMENT ADVISORY COMMITTEE. 
(a) The Direct Care and Treatment executive board under Minnesota Statutes, section 246C.07, shall establish an advisory committee to provide state legislators, counties, union representatives, the National Alliance on Mental Illness Minnesota, people being served by direct care and treatment programs, and other stakeholders the opportunity to advise the executive board regarding the operation of Direct Care and Treatment. 

(b) The members of the advisory committee must be appointed as follows: 

(1) one member appointed by the speaker of the house; 

(2) one member appointed by the minority leader of the house of representatives; 

(3) two members appointed by the senate Committee on Committees, one member representing the majority caucus and one member representing the minority caucus; 

(4) one member appointed by the Association of Minnesota Counties; 

(5) one member appointed by joint representatives of the American Federation of State and Municipal Employees, the Minnesota Association of Professional Employees, the Minnesota Nurses Association, the Middle Management Association, and the State Residential Schools Education Association; 

(6) one member appointed by the National Alliance on Mental Illness Minnesota; and 

(7) two members representing people with lived experience being served by state-operated treatment programs or their families, appointed by the governor. 

(c) Appointing authorities under paragraph (b) shall make appointments by January 1, 2026. 

(d) The first meeting of the advisory committee must be held no later than January 15, 2026. The members of the advisory committee shall elect a chair from among their membership at the first meeting. The advisory committee shall meet as frequently as it determines necessary. 

(e) The executive board shall regularly consult with the advisory committee. 

(f) The advisory committee under this section expires December 31, 2027. 

Laws 2024, chapter 125, article 5, section 41
Sec. 41. INITIAL APPOINTMENTS AND COMPENSATION OF THE DIRECT CARE AND TREATMENT EXECUTIVE BOARD AND CHIEF EXECUTIVE OFFICER. Subdivision 1.Executive board. 
(a) The initial appointments of the members of the Direct Care and Treatment executive board under Minnesota Statutes, section 246C.06, must be made by January 1, 2025. 

(b) Prior to the first Compensation Council determination of the daily compensation rate for voting members of the executive board under Minnesota Statutes, section 246C.06, subdivision 4, paragraph (b), voting members of the executive board must be paid the per diem rate provided for in Minnesota Statutes, section 15.0575, subdivision 3, paragraph (a). 

(c) The executive board is exempt from Minnesota Statutes, section 13D.01, until the authority and responsibilities for Direct Care and Treatment are transferred to the executive board in accordance with Minnesota Statutes, section 246C.04. 

Subd. 2.Chief executive officer. 
(a) The Direct Care and Treatment executive board must appoint as the initial chief executive officer for Direct Care and Treatment under Minnesota Statutes, section 246C.07, the chief executive officer of the direct care and treatment division of the Department of Human Services holding that position at the time the initial appointment is made by the board. The initial appointment of the chief executive officer must be made by the executive board by July 1, 2025. The initial appointment of the chief executive officer is subject to confirmation by the senate. 

(b) In its report issued April 1, 2025, the Compensation Council under Minnesota Statutes, section 15A.082, must establish the salary of the chief executive officer at an amount equal to or greater than the amount paid to the chief executive officer of the direct care and treatment division of the Department of Human Services as of the date of initial appointment. The salary of the chief executive officer shall become effective July 1, 2025, pursuant to Minnesota Statutes, section 15A.082, subdivision 3. Notwithstanding Minnesota Statutes, sections 15A.082 and 246C.08, subdivision 1, if the initial appointment of the chief executive officer occurs prior to the effective date of the salary specified by the Compensation Council in its April 1, 2025, report, the salary of the chief executive officer must equal the amount paid to the chief executive officer of the direct care and treatment division of the Department of Human Services as of the date of initial appointment. 

Subd. 3.Commissioner of human services to consult. 
In preparing the budget estimates required under Minnesota Statutes, section 16A.10, for the direct care and treatment division for the 2026-2027 biennial budget and any legislative proposals for the 2025 legislative session that involve direct care and treatment operations, the commissioner of human services must consult with the Direct Care and Treatment executive board before submitting the budget estimates or legislative proposals. If the executive board is not appointed by the date the budget estimates must be submitted to the commissioner of management and budget, the commissioner of human services must provide the executive board with a summary of the budget estimates that were submitted. 

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

Laws 2024, chapter 127, article 46, section 39 by Laws 2025, First Special Session chapter 9, article 2, section 70
Subdivision 1.Direct care provider premiums. Laws 2023, chapter 59, article 3, section 11, is repealed.Subd. 2.Legislative Task Force on Guardianship. Laws 2024, chapter 127, article 46, section 39, is repealed.Subd. 3.Repealing laws. (a) Laws 2021, First Special Session chapter 7, article 13, section 75, subdivision 3, as amended by Laws 2024, chapter 108, article 1, section 28, is repealed.(b) Laws 2021, First Special Session chapter 7, article 13, section 75, subdivision 6, as amended by Laws 2024, chapter 108, article 1, section 28, is repealed.Subd. 4.Compensation; expenses. 
Members of the task force may receive compensation and expense reimbursement as provided in Minnesota Statutes, section 15.059, subdivision 3. 

Subd. 5.Report; expiration. 
The task force shall submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over guardianship issues no later than January 15, 2027. The report must describe any concerns about the current guardianship system identified by the task force and recommend policy options to address those concerns and to promote less restrictive alternatives to guardianship. The report must include draft legislation to implement recommended policy. 

Subd. 6.Expiration. 
The task force expires upon submission of its report, or January 16, 2027, whichever is earlier.  

Laws 2024, chapter 127, article 50, section 40
Sec. 40. DIRECT CARE AND TREATMENT ADVISORY COMMITTEE. 
(a) The Direct Care and Treatment executive board under Minnesota Statutes, section 246C.07, shall establish an advisory committee to provide state legislators, counties, union representatives, the National Alliance on Mental Illness Minnesota, people being served by direct care and treatment programs, and other stakeholders the opportunity to advise the executive board regarding the operation of Direct Care and Treatment. 

(b) The members of the advisory committee must be appointed as follows: 

(1) one member appointed by the speaker of the house; 

(2) one member appointed by the minority leader of the house of representatives; 

(3) two members appointed by the senate Committee on Committees, one member representing the majority caucus and one member representing the minority caucus; 

(4) one member appointed by the Association of Minnesota Counties; 

(5) one member appointed by joint representatives of the American Federation of State and Municipal Employees, the Minnesota Association of Professional Employees, the Minnesota Nurses Association, the Middle Management Association, and the State Residential Schools Education Association; 

(6) one member appointed by the National Alliance on Mental Illness Minnesota; and 

(7) two members representing people with lived experience being served by state-operated treatment programs or their families, appointed by the governor. 

(c) Appointing authorities under paragraph (b) shall make appointments by January 1, 2026. 

(d) The first meeting of the advisory committee must be held no later than January 15, 2026. The members of the advisory committee shall elect a chair from among their membership at the first meeting. The advisory committee shall meet as frequently as it determines necessary. 

(e) The executive board shall regularly consult with the advisory committee. 

(f) The advisory committee under this section expires December 31, 2027. 

Laws 2024, chapter 127, article 50, section 41 Subdivisions 1, 3, 
Sec. 41. INITIAL APPOINTMENTS AND COMPENSATION OF THE DIRECT CARE AND TREATMENT EXECUTIVE BOARD AND CHIEF EXECUTIVE OFFICER. Subdivision 1.Executive board. 
(a) The initial appointments of the members of the Direct Care and Treatment executive board under Minnesota Statutes, section 246C.06, must be made by January 1, 2025. 

(b) Prior to the first Compensation Council determination of the daily compensation rate for voting members of the executive board under Minnesota Statutes, section 246C.06, subdivision 4, paragraph (b), voting members of the executive board must be paid the per diem rate provided for in Minnesota Statutes, section 15.0575, subdivision 3, paragraph (a). 

(c) The executive board is exempt from Minnesota Statutes, section 13D.01, until the authority and responsibilities for Direct Care and Treatment are transferred to the executive board in accordance with Minnesota Statutes, section 246C.04. 

Subd. 3.Commissioner of human services to consult. 
In preparing the budget estimates required under Minnesota Statutes, section 16A.10, for the direct care and treatment division for the 2026-2027 biennial budget and any legislative proposals for the 2025 legislative session that involve direct care and treatment operations, the commissioner of human services must consult with the Direct Care and Treatment executive board before submitting the budget estimates or legislative proposals. If the executive board is not appointed by the date the budget estimates must be submitted to the commissioner of management and budget, the commissioner of human services must provide the executive board with a summary of the budget estimates that were submitted. 

Laws 2024, chapter 79, article 1, section 20
Sec. 20. Minnesota Statutes 2023 Supplement, section 246C.03, subdivision 2, is amended to read:Subd. 2.Development of Department of Direct Care and Treatment Board. 
(a) The commissioner of human services shall prepare legislation for introduction during the 2024 legislative session, with input from stakeholders the commissioner deems necessary, proposing legislation for the creation and implementation of the Direct Care and Treatment executive board and defining the responsibilities, powers, and function of the Department of Direct Care and Treatment executive board. 

(b) The Department of Direct Care and Treatment executive board shall consist of no more than five members, all appointed by the governor. 

(c) An executive board member's qualifications must be appropriate for overseeing a complex behavioral health system, such as experience serving on a hospital or non-profit board, serving as a public sector labor union representative, experience in delivery of behavioral health services or care coordination, or working as a licensed health care provider, in an allied health profession, or in health care administration.