SF 3060

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/04/2025 09:00 a.m.

A bill for an act
relating to behavioral health; the Minnesota Recovery Residence Certification Act;
establishing a certification system for recovery residences; modifying housing
support eligibility and regulations; establishing criminal penalties; appropriating
money; amending Minnesota Statutes 2024, sections 256I.03, by adding
subdivisions; 256I.04, subdivisions 1, 2a, 2f; 491A.01, by adding a subdivision;
proposing coding for new law in Minnesota Statutes, chapter 254B.

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

Section 1.

new text begin [254B.25] SHORT TITLE.
new text end

new text begin Sections 254B.25 to 254B.267 may be referred to as the "Minnesota Recovery Residence
Certification Act."
new text end

Sec. 2.

new text begin [254B.251] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin The terms used in sections 254B.25 to 254B.267 have the meanings
given in this section.
new text end

new text begin Subd. 2. new text end

new text begin Applicant. new text end

new text begin "Applicant" means any individual, organization, or entity who has
applied for certification of a recovery residence.
new text end

new text begin Subd. 3. new text end

new text begin Certified recovery residence. new text end

new text begin "Certified recovery residence" means a recovery
residence that has completed the application process and been approved for certification by
a certifying organization or that has been automatically certified pursuant to section
254B.252, subdivision 3.
new text end

new text begin Subd. 4. new text end

new text begin Certifying organization. new text end

new text begin "Certifying organization" means an organization
under contract with or otherwise designated by the commissioner and tasked with the
responsibility of certifying recovery residences under sections 254B.25 to 254B.267.
new text end

new text begin Subd. 5. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of health. The
commissioner is responsible for the certification of recovery residences under sections
254B.25 to 254B.267.
new text end

new text begin Subd. 6. new text end

new text begin Community residence. new text end

new text begin "Community residence" means a residential living
arrangement for unrelated individuals with disabilities living as a single functional family
in a single dwelling unit who are in need of the mutual support furnished by other residents
of the community residence as well as support services, if any, provided by the staff, if any,
of the community residence. A community residence seeks to emulate a biological family
to foster normalization of its residents and integrate them into the surrounding community.
The term does not include any other group living arrangement for unrelated individuals
who are not disabled.
new text end

new text begin Subd. 7. new text end

new text begin Co-occurring disorder. new text end

new text begin "Co-occurring disorder" means the coexistence of
both a mental health and a substance use disorder.
new text end

new text begin Subd. 8. new text end

new text begin House manager. new text end

new text begin "House manager" means an individual either designated by
the owner or operator of a certified recovery residence or elected by the residents of a
certified recovery residence who is the point of contact between residents and the owner or
operator.
new text end

new text begin Subd. 9. new text end

new text begin Licensed state drug and alcohol treatment service provider. new text end

new text begin "Licensed state
drug and alcohol treatment service provider" means any individual or entity who is licensed,
registered, or certified in Minnesota to treat substance use disorders or who has a Drug
Addiction Treatment Act of 2000 waiver from the federal Substance Abuse and Mental
Health Services Administration to treat individuals with opioid use disorder using medications
approved for that indication by the United States Food and Drug Administration.
new text end

new text begin Subd. 10. new text end

new text begin National Alliance for Recovery Residences or NARR. new text end

new text begin "National Alliance
for Recovery Residences" or "NARR" is a nonprofit organization with a nationally recognized
standard for the certification of recovery residences that works with and supports
state-affiliated organizations.
new text end

new text begin Subd. 11. new text end

new text begin Operator. new text end

new text begin "Operator" means the lawful owner or lessee of a recovery residence
or a person employed and designated by the owner or lessee of the recovery residence to
have primary responsibility for oversight of the recovery residence, including but not limited
to hiring and termination of recovery residence staff, recovery residence maintenance, and
responding to complaints being investigated by the commissioner. This term does not apply
to a level 1 recovery residence.
new text end

new text begin Subd. 12. new text end

new text begin Recovery. new text end

new text begin "Recovery" means a process of change through which individuals
improve their health and wellness, live a self-directed life, and strive to reach their full
potential.
new text end

new text begin Subd. 13. new text end

new text begin Recovery peer. new text end

new text begin "Recovery peer" means a person who is qualified according
to section 245I.04, subdivision 18, to provide peer recovery support services within the
scope of practice provided under section 245I.04, subdivision 19.
new text end

new text begin Subd. 14. new text end

new text begin Recovery residence. new text end

new text begin (a) "Recovery residence" means a type of community
residence that provides a safe, healthy, family-like, substance-free living environment that
supports individuals in recovery from substance use disorder.
new text end

new text begin (b) Recovery residences:
new text end

new text begin (1) emulate a biological family;
new text end

new text begin (2) are centered on peer support and community integration;
new text end

new text begin (3) benefit individuals in recovery by reinforcing the skills and choices that help support
sustained recovery from substance use disorder and providing a supportive peer community
to which residents are accountable, and ensuring access to mutual aid groups, recovery
support services, and other needed services and supports; and
new text end

new text begin (4) may be located in single-family homes, multi-family dwellings, and mixed-use
structures.
new text end

new text begin Subd. 15. new text end

new text begin Recovery residence registry. new text end

new text begin "Recovery residence registry" means the list
of recovery residences maintained by the commissioner that have applied for certification
and have been approved or denied by the commissioner or from whom the commissioner
has revoked certification.
new text end

new text begin Subd. 16. new text end

new text begin Resident. new text end

new text begin "Resident" means an individual who resides in a recovery residence.
new text end

new text begin Subd. 17. new text end

new text begin Staff. new text end

new text begin "Staff" means employees, contractors, or volunteers who provide
monitoring, assistance, or other services for the use and benefit of a recovery residence and
its residents. This term may include but is not limited to a house manager, recovery peers,
and on-site counselors.
new text end

new text begin Subd. 18. new text end

new text begin Substance free. new text end

new text begin "Substance free" means being free from the use of alcohol,
illicit drugs, and the illicit use of prescribed drugs. This term does not prohibit medications
prescribed, dispensed, or administered by a licensed health care professional, such as
pharmacotherapies specifically approved by the United States Food and Drug Administration
(FDA) for treatment of a substance use disorder as well as other medications approved by
the FDA for the treatment of co-occurring disorders, when such medications are taken as
directed.
new text end

new text begin Subd. 19. new text end

new text begin Substance use disorder. new text end

new text begin "Substance use disorder" means a pattern of use of
alcohol or other drugs leading to impairment that meets the applicable diagnostic criteria
delineated in the latest edition of the Diagnostic and Statistical Manual of Disorders of the
American Psychiatric Association.
new text end

Sec. 3.

new text begin [254B.252] CERTIFICATION OF RECOVERY RESIDENCES.
new text end

new text begin Subdivision 1. new text end

new text begin In general. new text end

new text begin The commissioner shall establish and provide for the
administration of a voluntary training and certification program for operators of recovery
residences seeking certification under this section. The commissioner shall approve, contract
with, or otherwise officially designate a certifying organization to perform one or more of
the functions of the commissioner pursuant to this section or shall otherwise delegate such
functions to the approved certifying organization. The approved certifying organization
must be a nonprofit organization based in Minnesota and maintain a formal affiliate
relationship with the organization maintaining the national standard selected by the
commissioner.
new text end

new text begin Subd. 2. new text end

new text begin Maintenance of standards. new text end

new text begin The commissioner shall designate the national
standard to be used by the certification program established pursuant to this section and the
designated certifying organization shall maintain those standards and practices.
new text end

new text begin Subd. 3. new text end

new text begin Automatic certification. new text end

new text begin A recovery residence that has received a certificate
or charter from the certifying organization and that provides documentation of the charter
as required under subdivision 4, clause (11), does not need to meet any other requirements
for certification, and the commissioner shall issue a certification under this section.
Residences under this subdivision are not subject to inspections under subdivision 7 or 8.
new text end

new text begin Subd. 4. new text end

new text begin Application requirements. new text end

new text begin Applications for certification under this section
must contain at a minimum:
new text end

new text begin (1) the name of the individual or organization applying for certification;
new text end

new text begin (2) the proposed name, if any, of the recovery residence;
new text end

new text begin (3) the address and telephone number of the recovery residence;
new text end

new text begin (4) the applicant's address and telephone number, if different from the address and
telephone number of the recovery residence;
new text end

new text begin (5) the applicant's email address or, if an organization, the email address of the person
responsible for the application;
new text end

new text begin (6) the name and contact information of the applicant's parent organization, if applicable;
new text end

new text begin (7) the maximum number of residents to be housed in the recovery residence;
new text end

new text begin (8) the square footage of space per person per bedroom;
new text end

new text begin (9) the name, address, and telephone number of the operator of the recovery residence,
if different than the applicant;
new text end

new text begin (10) the applicant's signature and date signed;
new text end

new text begin (11) if the applicant qualifies under subdivision 3, documentation of a charter from the
certifying organization; and
new text end

new text begin (12) any other information required by the certifying organization.
new text end

new text begin Subd. 5. new text end

new text begin Application documents. new text end

new text begin Except for applicants pursuant to subdivision 3, an
applicant must submit at a minimum the following documents with the completed application
and fee:
new text end

new text begin (1) if the premises for the recovery residence is leased, documentation from the owner
that the applicant has permission from the owner to operate a recovery residence on the
premises;
new text end

new text begin (2) a policy and procedures manual, if applicable;
new text end

new text begin (3) rules for residents;
new text end

new text begin (4) copies of all forms provided to residents, including but not limited to the recovery
residence's medication, drug-testing, return-to-use, refund, and eviction or transfer policies;
new text end

new text begin (5) a copy of the resident fee schedule;
new text end

new text begin (6) proof of business insurance, including any general liability insurance, appropriate
to the services provided, if applicable; and
new text end

new text begin (7) proof of completed background checks pursuant to chapter 245C.
new text end

new text begin Subd. 6. new text end

new text begin Application fee. new text end

new text begin Applicants shall submit a nonrefundable application fee in an
amount to be determined by the certifying organization that shall be paid directly to the
certifying organization for use by the organization to administer sections 254B.25 to
254B.267.
new text end

new text begin Subd. 7. new text end

new text begin Inspection pursuant to application. new text end

new text begin Upon receiving a completed application,
the certifying organization shall conduct an on-site inspection of the recovery residence to
ensure the residence is in compliance with the requirements of sections 254B.25 to 254B.267.
new text end

new text begin Subd. 8. new text end

new text begin Ongoing inspections. new text end

new text begin The certifying organization shall inspect each certified
recovery residence at least once every two years to ensure continued compliance and may
conduct additional inspections to confirm correction of any deficiencies or for the purpose
of investigating a complaint.
new text end

new text begin Subd. 9. new text end

new text begin Correction of deficiencies in application. new text end

new text begin If the certifying organization
identifies a deficiency in an application, the applicant has 30 days from the date of the
notification of the deficiency to correct the deficiency, unless an extension is granted by
the certifying organization.
new text end

new text begin Subd. 10. new text end

new text begin Correction of deficiencies. new text end

new text begin If the certifying organization becomes aware of
a deficiency during the application process, through a subsequent inspection, or as a result
of a verified complaint from a resident or staff member, the certifying organization shall
require the recovery residence to submit a plan of action to correct the deficiency within a
specified time period. The plan of action must include the steps that will be taken by the
recovery residence or its operator to correct the deficiency and the time frame for making
the corrections. The certifying organization shall establish the deadline for submission of
the plan of action based on each residence's specific circumstances and the deficiencies
required to be corrected.
new text end

new text begin Subd. 11. new text end

new text begin Certification. new text end

new text begin The certifying organization shall certify a recovery residence
upon approval of the application and inspection. Applications must be approved or denied
within 30 days of receiving all required documentation and completing the required
inspection. The certification automatically terminates two years after issuance if the certifying
organization does not renew the certification or grant an extension. Upon certification, the
certifying organization shall issue the recovery residence a proof of certification.
new text end

new text begin Subd. 12. new text end

new text begin Content of proof of certification. new text end

new text begin The proof of certification issued to the
recovery residence must include:
new text end

new text begin (1) the name of the holder of the certification, which may be the individual applicant or
the name of the parent organization;
new text end

new text begin (2) the address of the certified recovery residence;
new text end

new text begin (3) the maximum number of persons to reside in the recovery residence; and
new text end

new text begin (4) the expiration date.
new text end

new text begin Subd. 13. new text end

new text begin Display of proof of certification. new text end

new text begin A recovery residence must publicly display
a proof of certification in the recovery residence.
new text end

new text begin Subd. 14. new text end

new text begin Nontransferable. new text end

new text begin Certifications issued pursuant to this section cannot be
transferred to an address other than the address in the application. An entity operating a
recovery residence must apply for a new certification if there is a material change in the
ownership or control of the entity.
new text end

new text begin Subd. 15. new text end

new text begin Required residency agreement provisions. new text end

new text begin In order to be certified under
sections 254B.25 to 254B.267, a residency agreement between a resident and an owner or
operator must contain:
new text end

new text begin (1) the recovery residence's termination and return-to-use policies;
new text end

new text begin (2) a notice that normal landlord-tenant protections do not apply to certified recovery
residences and that if the resident violates the agreement, the resident may be removed
within 24 hours;
new text end

new text begin (3) the length of time the recovery residence will keep the resident's property if the
resident is terminated or vacates the property. The timelines under this clause must be no
shorter than those in section 254B.255, subdivision 4; and
new text end

new text begin (4) the recovery residence's medication storage policies.
new text end

new text begin Subd. 16. new text end

new text begin Background checks. new text end

new text begin All controlling individuals, as defined in section 245A.02,
subdivision 5a, of an applicant recovery residence must complete a background check under
chapter 245C. This subdivision does not apply to recovery residences certified pursuant to
subdivision 3.
new text end

new text begin Subd. 17. new text end

new text begin Removal of owner, operator, director, or chief financial officer. new text end

new text begin (a) A
recovery residence may not be certified if, for a controlling individual: (1) less than five
years have passed since the discharge of the sentence imposed, if any, for the offense; and
(2) the individual has committed a violation of section: 254B.265 (patient brokering); 256.98
(wrongfully obtaining assistance); 268.182 (fraud); 609.2325 (criminal abuse of a vulnerable
adult); 609.2335 (financial exploitation of a vulnerable adult); 609.234 (failure to report
maltreatment of a vulnerable adult); 609.466 (medical assistance fraud); or 609.527 (identity
theft).
new text end

new text begin (b) If a controlling individual commits any of the crimes listed in paragraph (a), the
certified recovery residence must immediately remove the controlling individual from any
operating authority, begin removing or divesting the individual as a controlling individual,
and notify the certifying organization.
new text end

new text begin (c) The certifying organization shall suspend the certification of any recovery residence
that fails to comply with this subdivision.
new text end

new text begin (d) For the purpose of this subdivision, a violation of the crimes listed in paragraph (a)
includes:
new text end

new text begin (1) a controlling individual's aiding and abetting, attempt, or conspiracy to commit any
of the offenses listed in paragraph (a);
new text end

new text begin (2) an individual's offense in any other state or country where the elements of the offense
are substantially similar to any of the offenses listed in paragraph (a); and
new text end

new text begin (3) a judicial determination other than a conviction.
new text end

new text begin Subd. 18. new text end

new text begin Renewal application. new text end

new text begin At least 30 days prior to the expiration of certification,
a certified recovery residence shall submit a renewal application and any required fee to
the certifying organization in a format required by the certifying organization. Upon
inspection and determination by the certifying organization that the recovery residence
continues to meet the requirements of sections 254B.25 to 254B.267, the certifying
organization shall reissue a certification for a period of two years.
new text end

new text begin Subd. 19. new text end

new text begin Online applications. new text end

new text begin The certifying organization shall allow applicants to
submit initial and renewal applications through an online portal that includes the ability to
upload supporting documentation and electronically pay any fees.
new text end

new text begin Subd. 20. new text end

new text begin Online registry. new text end

new text begin The commissioner or certifying organization shall publish
and maintain a publicly accessible online registry of all certified recovery residences through
the commissioner's or certifying organization's website. The recovery residence registry
must be updated at least weekly.
new text end

new text begin Subd. 21. new text end

new text begin Denial of applications. new text end

new text begin (a) The certifying organization may deny an application
if:
new text end

new text begin (1) the applicant does not meet the requirements of sections 254B.25 to 254B.267 or
the rules adopted pursuant to section 254B.254; or
new text end

new text begin (2) the applicant, owner, or operator provides materially false or misleading information
on an initial or renewal application.
new text end

new text begin (b) If an application is denied pursuant to paragraph (a), clause (1), the certifying
organization must notify the recovery residence of the reason for denial and require the
residence to submit a plan of action under subdivision 10 to correct the deficiency by a
specified date. If the recovery residence follows the action plan and corrects the deficiency,
the certifying organization must reinspect the residence and certify the recovery residence
if it meets the requirements of sections 254B.25 to 254B.267 and the rules adopted pursuant
to section 254B.254.
new text end

new text begin Subd. 22. new text end

new text begin Uncertified recovery residences. new text end

new text begin Nothing in sections 254B.25 to 254B.267
prohibits a recovery residence that is not certified from operating or advertising as an
uncertified recovery residence or from offering residence to persons recovering from
substance use disorder.
new text end

Sec. 4.

new text begin [254B.253] SERVICES OFFERED AND LEVELS OF SUPPORT.
new text end

new text begin (a) The certifying organization shall certify applicants as level 1, peer run; level 2,
monitored; or level 3, supervised recovery residences, as provided in this section.
new text end

new text begin (b) A level 1 peer-run recovery residence provides no on-site paid staff or operator of
the recovery residence. A level 1 recovery residence is self-governed and democratically
run. No on-site services are provided at a level 1 recovery residence, and no paid staff live
or work within the residence.
new text end

new text begin (c) A level 2 monitored residence provides an on-site house manager or managers who
may be compensated by free or reduced recovery residence fees. Residents participate in
the governance of the residence in concert with the recovery residence staff and operator.
A level 2 recovery residence provides community or house meetings, peer recovery supports,
and involvement in self-help or off-site treatment services.
new text end

new text begin (d) A level 3 supervised recovery residence provides a paid house manager, administrative
support, and a certified peer recovery support service provider. Resident participation in
level 3 recovery residence governance varies, with most limited to senior resident
participation. A level 3 recovery residence is affiliated with mutual support groups and
clinical services in the community and provides community or house meetings, peer recovery
supports, peer or professional life skills training on site, and peer recovery support services.
A level 3 recovery residence may also provide other programmatic services, delivered by
either peer or paid staff, but does not offer clinical services.
new text end

Sec. 5.

new text begin [254B.254] RECOVERY RESIDENCE RULES.
new text end

new text begin The commissioner must incorporate standards adopted by the certifying organization
into Minnesota Rules by reference. The standards must be based on standards issued by a
national standard-setting body and meet the requirements of section 14.07, subdivision 4.
If the certifying organization's standards do not meet the requirements of section 14.07,
subdivision 4, the commissioner shall adopt rules based on the certifying organization's
standards.
new text end

Sec. 6.

new text begin [254B.255] TERMINATION OF RESIDENCY AND EVICTION.
new text end

new text begin Subdivision 1. new text end

new text begin In general. new text end

new text begin Notwithstanding any other provision of law or any rights or
obligations under chapter 504B, a certified recovery residence may terminate a resident's
residency for a substantial violation of the residency agreement.
new text end

new text begin Subd. 2. new text end

new text begin Writ of recovery. new text end

new text begin (a) If a resident substantially violates a residency agreement,
a certified recovery residence may file a petition in district court or, if in Hennepin or Ramsey
County, in housing court for a writ of recovery. The certified recovery residence must
include with the petition:
new text end

new text begin (1) a copy of the residency agreement signed by the resident;
new text end

new text begin (2) a copy of the recovery residence's proof of certification; and
new text end

new text begin (3) an affidavit by an owner or operator of the facts that demonstrate a substantial
violation of the residency agreement and that the resident has been notified in writing of
their termination and the timelines under this section.
new text end

new text begin (b) When the court receives a petition that meets the requirements of this section and
the court confirms that the recovery residency is currently certified in the recovery residence
registry, the court must issue a writ of recovery no sooner than 24 hours excluding weekends
and no later than 72 hours excluding weekends after the petition was filed.
new text end

new text begin Subd. 3. new text end

new text begin Appeal. new text end

new text begin A resident whose tenancy has been terminated by the recovery residence
under this section may dispute the termination by filing in conciliation court within 30 days
of the recovery residence a petition under subdivision 2 or, if applicable, the court issuing
a writ of recovery. During the 30-day window or while a court case disputing the termination
is open the residence is not required to allow the resident to continue residing on the premises
but must not allow another or new resident to occupy the resident's room or bed.
new text end

new text begin Subd. 4. new text end

new text begin Return of property. new text end

new text begin (a) A resident whose tenancy is terminated pursuant to
this section or who has voluntarily left the residence permanently may make a written request
to the recovery residence for the return of any personal property left in the residence by the
tenant on the resident's departure according to the timeline in the residency agreement,
which must be at least 30 days from the date of:
new text end

new text begin (1) voluntary departure;
new text end

new text begin (2) termination; or
new text end

new text begin (3) final disposition of any court case disputing a termination under this section.
new text end

new text begin (b) Upon receipt of a request under paragraph (a), the recovery residence shall return
any personal property belonging to the resident within 60 days from the date of the request.
new text end

new text begin (c) The recovery residence is not required to retain the personal property of a resident
whose tenancy is terminated or who has voluntarily permanently left the residence
indefinitely, and the recovery residence is not responsible for the relocation, storage, or
safeguarding of the former resident's property beyond the time period in paragraph (a).
new text end

Sec. 7.

new text begin [254B.256] RESIDENTS' RIGHTS.
new text end

new text begin Subdivision 1. new text end

new text begin In general. new text end

new text begin The commissioner must implement rules based on nationally
recognized standards for recovery residents' rights, and the commissioner or certifying
organization must maintain a list of the resident rights on its website.
new text end

new text begin Subd. 2. new text end

new text begin Complaint. new text end

new text begin A resident may file a complaint with the commissioner or certifying
organization pursuant to section 254B.263 for the failure of a recovery residence to uphold
the rights implemented pursuant to this section.
new text end

Sec. 8.

new text begin [254B.257] TRAINING AND TECHNICAL ASSISTANCE.
new text end

new text begin The commissioner or certifying organization shall develop a training and technical
assistance program for the benefit of recovery residences and certified recovery residences
to:
new text end

new text begin (1) assist owners, operators, house managers, and other staff with:
new text end

new text begin (i) developing an understanding of the statutes and regulations applicable to recovery
residences in Minnesota;
new text end

new text begin (ii) completing the application process for certification; and
new text end

new text begin (iii) answering questions regarding the day-to-day operation of recovery residences;
new text end

new text begin (2) assist newly certified recovery residences;
new text end

new text begin (3) encourage consistency in standards among certified recovery residences;
new text end

new text begin (4) improve the quality and effectiveness of recovery residences and their ability to serve
diverse communities; and
new text end

new text begin (5) promote a collaborative relationship between certified recovery residences and the
certifying organization.
new text end

Sec. 9.

new text begin [254B.258] ACCESS TO MEDICATION.
new text end

new text begin Subdivision 1. new text end

new text begin In general. new text end

new text begin All certified recovery residences shall ensure that a resident
who is legitimately prescribed or dispensed medications, including medications for the
treatment of substance use disorder, from an individual legally authorized to prescribe or
dispense the medication has access to the medication and is not denied tenancy in a recovery
residence or made to discontinue the use of the medication in order to stay at the residence.
new text end

new text begin Subd. 2. new text end

new text begin Security. new text end

new text begin (a) Certified recovery residences shall implement provisions for the
safe storage of, and access to, resident medications.
new text end

new text begin (b) Policies under paragraph (a) must not impair the ability of the resident to take such
medications as prescribed and must be disclosed to the resident at the time of intake.
new text end

Sec. 10.

new text begin [254B.259] ACCESS TO FUNDING AND REFERRALS.
new text end

new text begin Subdivision 1. new text end

new text begin Limitation on the use of funds. new text end

new text begin State, county, and local government
money, including grant money and federal money administered by the state, used to support
recovery residences must be available only to recovery residences certified under sections
254B.25 to 254B.267.
new text end

new text begin Subd. 2. new text end

new text begin Limitation on referrals. new text end

new text begin (a) A licensed inpatient or outpatient substance use
disorder treatment provider or state-funded or state-operated program may not make a
referral of a prospective, current, or discharged patient to or accept a referral from a recovery
residence unless, at the time of referral, the recovery residence is certified pursuant to
sections 254B.25 to 254B.267.
new text end

new text begin (b) For purposes of this section, a licensed inpatient or outpatient substance use disorder
treatment provider, state-funded or state-operated program, or recovery residence makes a
referral if the provider or recovery residence informs a patient by any means about the name,
address, or other details of a recovery residence or provider or informs a provider or recovery
residence of any identifying details about a patient.
new text end

new text begin Subd. 3. new text end

new text begin No obligation. new text end

new text begin Nothing in this section requires a licensed substance use disorder
treatment provider to refer a patient to or accept a referral from a recovery residence.
new text end

new text begin Subd. 4. new text end

new text begin Exceptions. new text end

new text begin Subdivision 2 does not apply to:
new text end

new text begin (1) referrals by a recovery residence to a licensed state drug and alcohol treatment service
provider when the recovery residence or its owners, directors, operators, or employees do
not benefit, directly or indirectly, from the referral; and
new text end

new text begin (2) the referral of a patient to or acceptance of a referral of a patient from a recovery
residence:
new text end

new text begin (i) that has no direct or indirect financial or other referral relationship with the licensed
service provider; and
new text end

new text begin (ii) where the residence or any resident of the residence does not receive a benefit,
directly or indirectly, for the referral.
new text end

Sec. 11.

new text begin [254B.26] LOCAL ZONING.
new text end

new text begin (a) Except as otherwise provided for in sections 254B.25 to 254B.267 and notwithstanding
any other law or regulation to the contrary, certified recovery residences must be considered
a permitted single-family residential use of property for the purposes of zoning and other
land use regulations. Certified recovery residences must not be prohibited by operation of
restrictive covenants or similar restrictions, regardless of when entered into, that cannot be
met because of the nature of the certified recovery residence, including provisions that
require the home's occupants be related, that the home must be occupied by the owner, or
similar provisions.
new text end

new text begin (b) A restriction, prohibition, or other provision, including provisions related to the
building or fire codes, is unenforceable if that restriction, prohibition, or provision does not
also apply to similar types of structures in the same zoning district occupied by a single
family.
new text end

Sec. 12.

new text begin [254B.261] DATA COLLECTION.
new text end

new text begin Subdivision 1. new text end

new text begin In general. new text end

new text begin (a) Certified recovery residences must submit any of the
following outcome data on residents to the commissioner:
new text end

new text begin (1) abstinence from substance use;
new text end

new text begin (2) change in employment or education status;
new text end

new text begin (3) change in earnings;
new text end

new text begin (4) housing stability;
new text end

new text begin (5) admissions and readmissions to treatment;
new text end

new text begin (6) criminal justice involvement;
new text end

new text begin (7) child welfare involvement;
new text end

new text begin (8) civic engagement;
new text end

new text begin (9) access to needed physical or behavioral health services and social services;
new text end

new text begin (10) access to private or public health insurance;
new text end

new text begin (11) length of stay in the recovery residence; and
new text end

new text begin (12) number of terminations due to return to use.
new text end

new text begin (b) All data submitted pursuant to this section must be deidentified to remove any
personally identifiable information.
new text end

new text begin Subd. 2. new text end

new text begin Study of state recovery housing needs. new text end

new text begin The commissioner or certifying
organization may conduct an environmental scan and needs assessment study to determine
the recovery housing needs of Minnesota and the location and adequacy of available
residences to meet that need. Any initial study must be completed by ........ Subsequent
studies must be completed no less frequently than once every three years following the
initial study.
new text end

new text begin Subd. 3. new text end

new text begin Survey areas. new text end

new text begin The study provided by subdivision 3 may assess the adequacy:
new text end

new text begin (1) of recovery housing relative to population in all areas of the state;
new text end

new text begin (2) of low-cost or subsidized recovery residences; and
new text end

new text begin (3) of recovery housing for underserved and difficult-to-serve populations, including
parents with children; pregnant women; reentry populations; persons living with HIV;
ethnic, racial, and other minorities; physically disabled persons; and Tribal communities.
new text end

new text begin Subd. 4. new text end

new text begin Annual report. new text end

new text begin (a) The commissioner or certifying organization shall analyze
any data collected pursuant to subdivisions 1 and 3 and issue an annual report to the governor
and the chairs and ranking minority members of the legislative committees with jurisdiction
over substance use disorder treatment assessing the effectiveness of certified recovery
residences in Minnesota, including any outcomes determined by a study conducted pursuant
to subdivision 4.
new text end

new text begin (b) The commissioner or certifying organization shall make the annual report under this
subdivision available on its website for use by the public.
new text end

Sec. 13.

new text begin [254B.262] SANCTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Suspension. new text end

new text begin (a) The certifying organization shall suspend a certification
if:
new text end

new text begin (1) the nature or number of violations revealed by any type of inspection or investigation
of a recovery residence indicates a direct risk to the life, health, or safety of a resident, staff
member, visitor, or other individual on the premises; or
new text end

new text begin (2) a certified recovery residence is not in compliance with any provision of sections
254B.25 to 254B.267 and fails to:
new text end

new text begin (i) file a plan of action with the certifying organization to correct any identified
deficiencies pursuant to section 254B.252, subdivision 10, within the time required by the
certifying organization; or
new text end

new text begin (ii) remedy all deficiencies identified by the certifying organization within the time
required, unless an extension of time is granted by the certifying organization.
new text end

new text begin (b) Suspensions must last until the certifying organization reinspects the property and
finds no deficiencies.
new text end

new text begin Subd. 2. new text end

new text begin Nature or number of violations. new text end

new text begin In determining whether a violation poses a
direct risk to the life, health, or safety of a resident, staff member, visitor, or other individual
on the premises of the certified recovery residence, the certifying organization shall consider:
new text end

new text begin (1) repeated violations of statutes or rules;
new text end

new text begin (2) a pattern of violations;
new text end

new text begin (3) the types of violations;
new text end

new text begin (4) the severity of violations; and
new text end

new text begin (5) the number of violations.
new text end

new text begin Subd. 3. new text end

new text begin Revocation. new text end

new text begin The certifying organization must revoke a certification if:
new text end

new text begin (1) the applicant, owner, or operator provides materially false or misleading information
on a renewal application, as part of an inspection, or in response to a complaint; or
new text end

new text begin (2) a recovery residence's certification is up for renewal and has been suspended for at
least 30 days.
new text end

new text begin Subd. 4. new text end

new text begin Misrepresentation of certification; fine. new text end

new text begin A recovery residence that has not
been certified pursuant sections 254B.25 to 254B.267 and holds itself out as a certified
recovery residence shall be subject to an injunction and will be subject to a fine of not more
than $....... for each violation.
new text end

new text begin Subd. 5. new text end

new text begin Notification. new text end

new text begin (a) The certifying organization shall provide written notification
of any sanction to the recovery residence operator. The written notification must include
an explanation of:
new text end

new text begin (1) the reason for the sanction;
new text end

new text begin (2) for suspensions, the requirement that the recovery residence submit an action plan
under section 254B.252, subdivision 10;
new text end

new text begin (3) any rights of appeal the recovery residence may have; and
new text end

new text begin (4) the process for asserting those rights.
new text end

new text begin (b) The certifying organization shall provide written notification of a suspension or
revocation of a certification to the county and municipality where the recovery residence
is located.
new text end

Sec. 14.

new text begin [254B.263] COMPLAINTS.
new text end

new text begin Subdivision 1. new text end

new text begin In general. new text end

new text begin The certifying organization shall establish a toll-free telephone
number or an online complaint form, or both, to receive complaints from residents, staff,
and the general public regarding certified recovery residences.
new text end

new text begin Subd. 2. new text end

new text begin Types of complaints. new text end

new text begin The certifying organization must accept and review
complaints that concern:
new text end

new text begin (1) the health of residents and safety of the recovery residence;
new text end

new text begin (2) management of the recovery residence, including but not limited to house
environment, financial procedures, staffing, house rules and regulations, improper handling
of resident terminations, and recovery support environment; or
new text end

new text begin (3) illegal activities or threats.
new text end

new text begin Subd. 3. new text end

new text begin Investigation. new text end

new text begin (a) Complaints regarding illegal activities or threats must be
immediately referred to law enforcement in the jurisdiction where the recovery residence
is located. The certifying organization shall continue to investigate matters referred to law
enforcement that involve complaints contained in subdivision 2, clause (3), unless law
enforcement requests the certifying organization to stay its investigation.
new text end

new text begin (b) The certifying organization shall investigate all other types of complaints under this
section and may take any action necessary to conduct an investigation, including but not
limited to interviewing the recovery residence operator, house manager, staff, and residents,
and conducting an inspection of the premises.
new text end

new text begin Subd. 4. new text end

new text begin Anonymity. new text end

new text begin When making a complaint pursuant to this section, an individual
must disclose their identity to the certifying organization. Unless ordered by a court or
authorized by the complainant, the commissioner or certifying organization must not disclose
the complainant's identity.
new text end

new text begin Subd. 5. new text end

new text begin Prohibition against retaliation. new text end

new text begin A recovery residence owner, operator, director,
staff member including house manager, volunteer, or resident must not be subject to
retaliation, including but not limited to interference, threats, coercion, harassment, or
discrimination for making any complaint against a recovery residence or against a recovery
residence owner, operator, or chief financial officer.
new text end

Sec. 15.

new text begin [254B.264] RECONSIDERATION.
new text end

new text begin Subdivision 1. new text end

new text begin In general. new text end

new text begin A recovery residence may request reconsideration of a decision
to deny an application, suspend or revoke certification, or impose a fine by notifying the
commissioner by certified mail or personal service. The request must be made in writing.
If sent by certified mail, the request must be postmarked and sent to the commissioner within
20 calendar days after the certification holder received notification of the decision. If a
request is made by personal service, it must be received by the commissioner within 20
calendar days after the certification holder received notification of the decision. With the
request for reconsideration, the certification holder may submit a written argument or
evidence in support of the request for reconsideration.
new text end

new text begin Subd. 2. new text end

new text begin Administrative appeal. new text end

new text begin A recovery residence may request an administrative
hearing pursuant to chapter 14 within 30 days of receiving notice of an adverse decision of
the commissioner under this section.
new text end

Sec. 16.

new text begin [254B.265] CRIMES.
new text end

new text begin Subdivision 1. new text end

new text begin Patient brokering. new text end

new text begin (a) Whoever does any of the following acts commits
the crime of patient brokering and may be sentenced as provided in subdivision 2:
new text end

new text begin (1) offers or pays a commission, benefit, bonus, rebate, kickback, or bribe, directly or
indirectly, in cash or in kind, or engages in any split-fee arrangement, in any form whatsoever,
to induce the referral of a patient or patronage to or from a licensed state drug and alcohol
treatment service provider, health care provider, or health care facility;
new text end

new text begin (2) solicits or receives a commission, benefit, bonus, rebate, kickback, or bribe, directly
or indirectly, in cash or in kind, or engages in any split-fee arrangement, in any form
whatsoever, in return for referring a patient or patronage to or from a licensed state drug
and alcohol treatment service provider, health care provider, or health care facility;
new text end

new text begin (3) solicits or receives a commission, benefit, bonus, rebate, kickback, or bribe, directly
or indirectly, in cash or in kind, or engage in any split-fee arrangement, in any form
whatsoever, in return for the acceptance or acknowledgment of treatment from a licensed
state drug and alcohol treatment service provider, health care provider, or health care facility;
or
new text end

new text begin (4) aids, abets, advises, or otherwise participates in the conduct prohibited under clauses
(1) to (3).
new text end

new text begin (b) This subdivision does not apply to any payment, waiver of payment, or payment
practice expressly authorized by United States Code, title 42, section 1320a-7b(b)(3).
new text end

new text begin Subd. 2. new text end

new text begin Penalty. new text end

new text begin (a) Whoever violates subdivision 1, when the total value of the
commissions, benefits, bonuses, rebates, kickbacks, and bribes is less than $....... is guilty
of a misdemeanor.
new text end

new text begin (b) Whoever violates subdivision 1, when the total value of the commissions, benefits,
bonuses, rebates, kickbacks, and bribes is greater than $....... and less than $....... is guilty
of a gross misdemeanor.
new text end

new text begin (c) Whoever violates subdivision 1, when the total value of the commissions, benefits,
bonuses, rebates, kickbacks, and bribes is greater than $........ is guilty of a felony and may
be sentenced to imprisonment for not more than ....... or to payment of a fine not to exceed
$........
new text end

new text begin Subd. 3. new text end

new text begin Unlawful referral. new text end

new text begin Any person who willfully and knowingly violates section
254B.259, subdivision 2, is guilty of a ....... and may be sentenced to imprisonment for not
more than ....... or to payment of a fine not to exceed $........
new text end

new text begin Subd. 4. new text end

new text begin Fines. new text end

new text begin All fines collected pursuant to this section must be deposited into .......
fund for use by the commissioner to administer sections 254B.25 to 254B.267.
new text end

Sec. 17.

new text begin [254B.266] CONFIDENTIALITY.
new text end

new text begin Subdivision 1. new text end

new text begin Recovery residence records. new text end

new text begin Records of residents maintained by certified
recovery residences are private data on individuals under chapter 13.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner. new text end

new text begin The commissioner shall not maintain any personally identifiable
information regarding any resident of a certified recovery residence in connection with its
role under sections 254B.25 to 254B.267.
new text end

Sec. 18.

new text begin [254B.267] FUNDING.
new text end

new text begin The commissioner shall pursue all federal funding, matching funds, and foundation or
other charitable funding for the initial and ongoing costs associated with sections 254B.25
to 254B.267.
new text end

Sec. 19.

Minnesota Statutes 2024, section 256I.03, is amended by adding a subdivision
to read:

new text begin Subd. 6a. new text end

new text begin Certified recovery residence. new text end

new text begin "Certified recovery residence" has the meaning
given in section 254B.251, subdivision 3.
new text end

Sec. 20.

Minnesota Statutes 2024, section 256I.03, is amended by adding a subdivision
to read:

new text begin Subd. 14c. new text end

new text begin Recovery residence registry. new text end

new text begin "Recovery residence registry" has the meaning
given in section 254B.251, subdivision 15.
new text end

Sec. 21.

Minnesota Statutes 2024, section 256I.04, subdivision 1, is amended to read:

Subdivision 1.

Individual eligibility requirements.

An individual is eligible for and
entitled to a housing support payment to be made on the individual's behalf if the agency
has approved the setting where the individual will receive housing support and the individual
meets the requirements in paragraph (a), (b), (c), deleted text begin or deleted text end (d) new text begin , or (e) new text end .

(a) The individual is aged, blind, or is over 18 years of age with a disability as determined
under the criteria used by the title II program of the Social Security Act, and meets the
resource restrictions and standards of section 256P.02, and the individual's countable income
after deducting the (1) exclusions and disregards of the SSI program, (2) the medical
assistance personal needs allowance under section 256B.35, and (3) an amount equal to the
income actually made available to a community spouse by an elderly waiver participant
under the provisions of sections 256B.0575, paragraph (a), clause (4), and 256B.058,
subdivision 2, is less than the monthly rate specified in the agency's agreement with the
provider of housing support in which the individual resides.

(b) The individual meets a category of eligibility under section 256D.05, subdivision 1,
paragraph (a), clauses (1), (3), (4) to (8), and (13), and paragraph (b), if applicable, and the
individual's resources are less than the standards specified by section 256P.02, and the
individual's countable income as determined under section 256P.06, less the medical
assistance personal needs allowance under section 256B.35 is less than the monthly rate
specified in the agency's agreement with the provider of housing support in which the
individual resides.

(c) The individual lacks a fixed, adequate, nighttime residence upon discharge from a
residential behavioral health treatment program, as determined by treatment staff from the
residential behavioral health treatment program. An individual is eligible under this paragraph
for up to three months, including a full or partial month from the individual's move-in date
at a setting approved for housing support following discharge from treatment, plus two full
months.

(d) The individual meets the criteria related to establishing a certified disability or
disabling condition in paragraph (a) or (b) and lacks a fixed, adequate, nighttime residence
upon discharge from a correctional facility, as determined by an authorized representative
from a Minnesota-based correctional facility. An individual is eligible under this paragraph
for up to three months, including a full or partial month from the individual's move-in date
at a setting approved for housing support following release, plus two full months. Any
income received by people who meet the disabling condition criteria established in paragraph
(a) or (b) is not countable for the duration of eligibility under this paragraph.

new text begin (e) The individual lacks a fixed, adequate, and clinically indicated nighttime residence
during the individual's enrollment and active participation in a licensed behavioral health
treatment program that meets the level of care requirements under section 254B.19,
subdivision 1, paragraph (a), clauses (1) to (4). An individual is eligible under this paragraph
for up to three months, including a full or partial month from the individual's move-in date
at a setting approved for housing support following discharge from treatment, plus two full
months.
new text end

Sec. 22.

Minnesota Statutes 2024, section 256I.04, subdivision 2a, is amended to read:

Subd. 2a.

License required; staffing qualifications.

(a) Except as provided in paragraph
(b), an agency may not enter into an agreement with an establishment to provide housing
support unless:

(1) the establishment is licensed by the Department of Health as a hotel and restaurant;
a board and lodging establishment; a boarding care home before March 1, 1985; or a
supervised living facility, and the service provider for residents of the facility is licensed
under chapter 245A. However, an establishment licensed by the Department of Health to
provide lodging need not also be licensed to provide board if meals are being supplied to
residents under a contract with a food vendor who is licensed by the Department of Health;

(2) the residence is:

(i) licensed by the commissioner of human services under Minnesota Rules, parts
9555.5050 to 9555.6265;

(ii) certified by a county human services agency prior to July 1, 1992, using the standards
under Minnesota Rules, parts 9555.5050 to 9555.6265;

(iii) licensed by the commissioner under Minnesota Rules, parts 2960.0010 to 2960.0120,
with a variance under section 245A.04, subdivision 9; deleted text begin or
deleted text end

(iv) licensed under section 245D.02, subdivision 4a, as a community residential setting
by the commissioner of human services; or

new text begin (v) a certified recovery residence that is listed as in good standing on the recovery
residence registry; or
new text end

(3) the facility is licensed under chapter 144G and provides three meals a day.

(b) The requirements under paragraph (a) do not apply to establishments exempt from
state licensure because they are:

(1) located on Indian reservations and subject to tribal health and safety requirements;
or

(2) supportive housing establishments where an individual has an approved habitability
inspection and an individual lease agreement.

(c) Supportive housing establishments that serve individuals who have experienced
long-term homelessness and emergency shelters must participate in the homeless management
information system and a coordinated assessment system as defined by the commissioner.

(d) Effective July 1, 2016, an agency shall not have an agreement with a provider of
housing support unless all staff members who have direct contact with recipients:

(1) have skills and knowledge acquired through one or more of the following:

(i) a course of study in a health- or human services-related field leading to a bachelor
of arts, bachelor of science, or associate's degree;

(ii) one year of experience with the target population served;

(iii) experience as a mental health certified peer specialist according to section 256B.0615;
or

(iv) meeting the requirements for unlicensed personnel under sections 144A.43 to
144A.483;

(2) hold a current driver's license appropriate to the vehicle driven if transporting
recipients;

(3) complete training on vulnerable adults mandated reporting and child maltreatment
mandated reporting, where applicable; and

(4) complete housing support orientation training offered by the commissioner.

Sec. 23.

Minnesota Statutes 2024, section 256I.04, subdivision 2f, is amended to read:

Subd. 2f.

Required services.

(a) In authorized settings under subdivision 2a, providers
shall ensure that participants have at a minimum:

(1) food preparation and service for three nutritional meals a day on site;

(2) a bed, clothing storage, linen, bedding, laundering, and laundry supplies or service;

(3) housekeeping, including cleaning and lavatory supplies or service; and

(4) maintenance and operation of the building and grounds, including heat, water, garbage
removal, electricity, telephone for the site, cooling, supplies, and parts and tools to repair
and maintain equipment and facilities.

(b) In addition, when providers serve participants described in subdivision 1, paragraph
(c), the providers are required to assist the participants in applying for continuing housing
support payments before the end of the eligibility period.

new text begin (c) The requirements of paragraph (a) do not apply to a certified recovery residence that
is listed as in good standing on the recovery residence registry.
new text end

Sec. 24.

Minnesota Statutes 2024, section 491A.01, is amended by adding a subdivision
to read:

new text begin Subd. 12. new text end

new text begin Jurisdiction; recovery residency terminations. new text end

new text begin The conciliation court has
jurisdiction to determine whether a certified recovery residence properly terminated a
residency under section 254B.255. If the court finds that the resident was improperly
terminated or removed from the residence, the court may order the recovery residence to
allow the resident to return.
new text end

Sec. 25. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 24 are effective ........
new text end

Sec. 26. new text begin SEVERABILITY.
new text end

new text begin If any provision of this act or the act's applicability to any person or circumstance is held
invalid, the remainder of the act or the application of the provision to other persons or
circumstances is not affected.
new text end

Sec. 27. new text begin APPROPRIATION.
new text end

new text begin $350,000 in fiscal year 2026 and $350,000 in fiscal year 2027 are appropriated from the
general fund to the commissioner of ... to implement and operate the Minnesota Recovery
Residence Certification Act under Minnesota Statutes, sections 254B.25 to 254B.267.
new text end