SF 3150

Introduction - 94th Legislature (2025 - 2026)

Posted on 08/13/2025 10:53 a.m.

A bill for an act
relating to state government; making changes to provisions in state agencies to
address financial crimes and fraud; amending Minnesota Statutes 2024, sections
13.46, subdivisions 2, 3; 13.82, subdivision 1; 43A.17, subdivision 13; 45.0135,
subdivisions 2b, 6, 7, 8, 9, by adding a subdivision; 60A.951, subdivision 2;
60A.952, subdivisions 2, 4, 5; 60A.954, subdivision 2; 60A.956; 65B.84; 124D.111,
subdivision 2a; 124E.02; 124E.16, subdivision 1, by adding a subdivision; 124E.26,
subdivisions 4, 5, by adding a subdivision; 127A.21, subdivisions 1, 1a, 4, 5, 6,
7, by adding subdivisions; 142E.16, subdivision 7; 142E.51, subdivisions 5, 6;
245.095, subdivision 5, by adding a subdivision; 245A.04, subdivision 1; 245A.05;
245A.07, subdivision 2; 245C.13, subdivision 2; 245C.14, by adding subdivisions;
245C.15, subdivisions 1, 4a; 245C.16, subdivision 1; 245G.01, by adding
subdivisions; 245G.02, subdivision 2; 245G.07, subdivisions 1, 3, 4, by adding
subdivisions; 245G.11, subdivisions 6, 7, by adding a subdivision; 245G.22,
subdivisions 11, 15; 254B.01, subdivisions 10, 11; 254B.05, subdivisions 1, 1a;
254B.06, by adding a subdivision; 254B.181, subdivisions 1, 2, 3, by adding
subdivisions; 254B.19, subdivision 1; 256.98, subdivision 1; 256.983, subdivision
4; 256B.04, subdivision 21; 256B.0625, subdivision 5m; 256B.0659, subdivision
21; 256B.0757, subdivision 4c; 256B.0949, subdivisions 2, 15, 16, by adding a
subdivision; 256B.12; 256B.85, subdivision 12; 256I.04, subdivision 2a; 260E.14,
subdivision 1; 268.19, subdivision 1; 268B.30; 270C.445, subdivision 3; 297I.11,
subdivision 2; 299C.40, subdivision 1; 325F.725; 609.531, subdivision 1; 626.05,
subdivision 2; 626.5572, subdivision 13; 626.84, subdivision 1; proposing coding
for new law in Minnesota Statutes, chapters 13; 245A; 254B; 299C; 609; repealing
Minnesota Statutes 2024, sections 45.0135, subdivisions 2a, 2c, 2d, 2e, 2f, 3, 4,
5; 245G.01, subdivision 20d; 245G.07, subdivision 2; 254B.01, subdivision 5;
254B.04, subdivision 2a; 325E.21, subdivision 2b.

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

ARTICLE 1

APPROPRIATIONS

Section 1. new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2026" and "2027" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively.
"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium"
is fiscal years 2026 and 2027.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2026 new text end		new text begin 2027 new text end

Sec. 2. new text begin ATTORNEY GENERAL new text end

new text begin $ new text end

new text begin 391,000 new text end

new text begin $ new text end

new text begin 391,000 new text end

new text begin This amount is for increased staffing within
the Medicaid Fraud Division.
new text end

Sec. 3. new text begin DEPARTMENT OF CHILDREN, YOUTH, AND FAMILIES new text end

new text begin $ new text end

new text begin 5,883,000 new text end

new text begin $ new text end

new text begin 2,030,000 new text end

new text begin This amount is to increase capacity for
compliance efforts and improve program
integrity and service delivery for the child care
assistance program.
new text end

new text begin The base for this appropriation is $2,030,000
in fiscal year 2028 and $2,029,000 in fiscal
year 2029.
new text end

Sec. 4. new text begin DEPARTMENT OF EDUCATION new text end

new text begin $ new text end

new text begin 550,000 new text end

new text begin $ new text end

new text begin 550,000 new text end

new text begin This amount is for fraud prevention and
detection at the department.
new text end

Sec. 5. new text begin DEPARTMENT OF HUMAN SERVICES new text end

new text begin $ new text end

new text begin 21,955,000 new text end

new text begin $ new text end

new text begin 23,676,000 new text end

new text begin Subdivision 1. new text end new text begin Central Office Operations new text end

new text begin 21,955,000 new text end

new text begin 26,079,000 new text end

new text begin (a) Finance and Management new text end

new text begin 21,955,000 new text end

new text begin 26,079,000 new text end

new text begin Of this amount, $5,658,000 in fiscal year 2026
and $5,993,000 in fiscal year 2027 are for
program integrity investigative analytics
infrastructure at the department. The base for
this appropriation is $4,736,000 in fiscal year
2028 and $4,707,000 in fiscal year 2029.
new text end

new text begin (b) The base for this appropriation is
$19,660,000 in fiscal year 2028 and
$19,474,000 in fiscal year 2029.
new text end

new text begin (c) Positions, salary money, and nonsalary
administrative money may be transferred
within the Department of Human Services as
the commissioner considers necessary with
the advance approval of the commissioner of
management and budget. The commissioner
shall report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over health and health and human
services finance quarterly about transfers made
under this section.
new text end

new text begin Subd. 2. new text end new text begin Forecasted Programs new text end

new text begin 0 new text end

new text begin (2,403,000) new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
paragraphs.
new text end

new text begin (a) Housing Supports new text end

new text begin 0 new text end

new text begin 1,800,000 new text end

new text begin This amount is for housing support payments
for certified recovery residence facilities.
new text end

new text begin (b) Medical Assistance Grants new text end

new text begin 0 new text end

new text begin (2,060,000) new text end

new text begin The amounts in parentheses in this paragraph
shall be reduced from other legislatively
enacted appropriations made to the
Commissioner of Human Services for Medical
Assistance during the 2025 legislative session
for the biennium ending June 30, 2027.
new text end

new text begin (c) Behavioral Health Fund new text end

new text begin 0 new text end

new text begin (2,143,000) new text end

new text begin The amounts in parentheses in this paragraph
shall be reduced from other legislatively
enacted appropriations made to the
commissioner of human services for the
Behavioral Health Fund during the 2025
legislative session for the biennium ending
June 30, 2027.
new text end

Sec. 6. new text begin DEPARTMENT OF MANAGEMENT AND BUDGET new text end

new text begin $ new text end

new text begin 1,162,000 new text end

new text begin $ new text end

new text begin 1,590,000 new text end

new text begin This amount is for additional financial and
human resource oversight capacity at the
department.
new text end

Sec. 7. new text begin DEPARTMENT OF PUBLIC SAFETY new text end

new text begin $ new text end

new text begin 2,025,000 new text end

new text begin $ new text end

new text begin 2,025,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 1,810,000 new text end	new text begin 1,810,000 new text end
new text begin Workers' Compensation new text end	new text begin 215,000 new text end	new text begin 215,000 new text end

new text begin These appropriations are to the Bureau of
Criminal Apprehension for the Financial
Crimes and Fraud Section.
new text end

Sec. 8. new text begin DEPARTMENT OF COMMERCE new text end

new text begin $ new text end

new text begin (1,330,000) new text end

new text begin $ new text end

new text begin (1,330,000) new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin (1,115,000) new text end	new text begin (1,115,000) new text end
new text begin Workers' Compensation new text end	new text begin (215,000) new text end	new text begin (215,000) new text end

new text begin The amounts in parentheses in this section
shall reduce other legislatively enacted
appropriations for the biennium ending June
30, 2027, made during the 2025 legislative
session to the Department of Commerce for
their enforcement program.
new text end

Sec. 9. new text begin DEPARTMENT OF CORRECTIONS new text end

new text begin $ new text end

new text begin 12,000 new text end

new text begin $ new text end

new text begin 44,000 new text end

new text begin This amount is for increased bed costs related
to Minnesota Statutes, section 609.5523. The
base for this appropriation is $87,000 in fiscal
year 2028 and $145,000 in fiscal year 2029.
new text end

Sec. 10. new text begin APPROPRIATIONS AND TRANSFERS GIVEN EFFECT ONCE.
new text end

new text begin If an appropriation, reduction to an appropriation, or transfer in this act is enacted during
the 2025 legislative session more than once to fund the same intent and purpose, the
appropriation, reduction to an appropriation, or transfer must be given effect only once.
new text end

ARTICLE 2

DEPARTMENT OF HUMAN SERVICES

Section 1.

Minnesota Statutes 2024, section 13.46, subdivision 2, is amended to read:

Subd. 2.

General.

(a) Data on individuals collected, maintained, used, or disseminated
by the welfare system are private data on individuals, and shall not be disclosed except:

(1) according to section 13.05;

(2) according to court order;

(3) according to a statute specifically authorizing access to the private data;

(4) to an agent deleted text begin of the welfare system and an deleted text end new text begin or new text end investigator acting on behalf of a county,
the state, or the federal government, including a law enforcement person or attorney in the
investigation or prosecution of a criminal, civil, or administrative proceeding relating to the
administration of a program;

(5) to personnel of the welfare system who require the data to verify an individual's
identity; determine eligibility, amount of assistance, and the need to provide services to an
individual or family across programs; coordinate services for an individual or family;
evaluate the effectiveness of programs; assess parental contribution amounts; and investigate
suspected fraud;

(6) to administer federal funds or programs;

(7) between personnel of the welfare system working in the same program;

(8) to the Department of Revenue to administer and evaluate tax refund or tax credit
programs and to identify individuals who may benefit from these programs, and prepare
the databases for reports required under section 270C.13 and Laws 2008, chapter 366, article
17, section 6. The following information may be disclosed under this paragraph: an
individual's and their dependent's names, dates of birth, Social Security or individual taxpayer
identification numbers, income, addresses, and other data as required, upon request by the
Department of Revenue. Disclosures by the commissioner of revenue to the commissioner
of human services for the purposes described in this clause are governed by section 270B.14,
subdivision 1. Tax refund or tax credit programs include, but are not limited to, the dependent
care credit under section 290.067, the Minnesota working family credit under section
290.0671, the property tax refund under section 290A.04, and the Minnesota education
credit under section 290.0674;

(9) between the Department of Human Services; the Department of Employment and
Economic Development; the Department of Children, Youth, and Families; Direct Care and
Treatment; and, when applicable, the Department of Education, for the following purposes:

(i) to monitor the eligibility of the data subject for unemployment benefits, for any
employment or training program administered, supervised, or certified by that agency;

(ii) to administer any rehabilitation program or child care assistance program, whether
alone or in conjunction with the welfare system;

(iii) to monitor and evaluate the Minnesota family investment program or the child care
assistance program by exchanging data on recipients and former recipients of Supplemental
Nutrition Assistance Program (SNAP) benefits, cash assistance under chapter 142F, 256D,
256J, or 256K, child care assistance under chapter 142E, medical programs under chapter
256B or 256L; and

(iv) to analyze public assistance employment services and program utilization, cost,
effectiveness, and outcomes as implemented under the authority established in Title II,
Sections 201-204 of the Ticket to Work and Work Incentives Improvement Act of 1999.
Health records governed by sections 144.291 to 144.298 and "protected health information"
as defined in Code of Federal Regulations, title 45, section 160.103, and governed by Code
of Federal Regulations, title 45, parts 160-164, including health care claims utilization
information, must not be exchanged under this clause;

(10) to appropriate parties in connection with an emergency if knowledge of the
information is necessary to protect the health or safety of the individual or other individuals
or persons;

(11) data maintained by residential programs as defined in section 245A.02 may be
disclosed to the protection and advocacy system established in this state according to Part
C of Public Law 98-527 to protect the legal and human rights of persons with developmental
disabilities or other related conditions who live in residential facilities for these persons if
the protection and advocacy system receives a complaint by or on behalf of that person and
the person does not have a legal guardian or the state or a designee of the state is the legal
guardian of the person;

(12) to the county medical examiner or the county coroner for identifying or locating
relatives or friends of a deceased person;

(13) data on a child support obligor who makes payments to the public agency may be
disclosed to the Minnesota Office of Higher Education to the extent necessary to determine
eligibility under section 136A.121, subdivision 2, clause (5);

(14) participant Social Security or individual taxpayer identification numbers and names
collected by the telephone assistance program may be disclosed to the Department of
Revenue to conduct an electronic data match with the property tax refund database to
determine eligibility under section 237.70, subdivision 4a;

(15) the current address of a Minnesota family investment program participant may be
disclosed to law enforcement officers who provide the name of the participant and notify
the agency that:

(i) the participant:

(A) is a fugitive felon fleeing to avoid prosecution, or custody or confinement after
conviction, for a crime or attempt to commit a crime that is a felony under the laws of the
jurisdiction from which the individual is fleeing; or

(B) is violating a condition of probation or parole imposed under state or federal law;

(ii) the location or apprehension of the felon is within the law enforcement officer's
official duties; and

(iii) the request is made in writing and in the proper exercise of those duties;

(16) the current address of a recipient of general assistance may be disclosed to probation
officers and corrections agents who are supervising the recipient and to law enforcement
officers who are investigating the recipient in connection with a felony level offense;

(17) information obtained from a SNAP applicant or recipient households may be
disclosed to local, state, or federal law enforcement officials, upon their written request, for
the purpose of investigating an alleged violation of the Food and Nutrition Act, according
to Code of Federal Regulations, title 7, section 272.1(c);

(18) the address, Social Security or individual taxpayer identification number, and, if
available, photograph of any member of a household receiving SNAP benefits shall be made
available, on request, to a local, state, or federal law enforcement officer if the officer
furnishes the agency with the name of the member and notifies the agency that:

(i) the member:

(A) is fleeing to avoid prosecution, or custody or confinement after conviction, for a
crime or attempt to commit a crime that is a felony in the jurisdiction the member is fleeing;

(B) is violating a condition of probation or parole imposed under state or federal law;
or

(C) has information that is necessary for the officer to conduct an official duty related
to conduct described in subitem (A) or (B);

(ii) locating or apprehending the member is within the officer's official duties; and

(iii) the request is made in writing and in the proper exercise of the officer's official duty;

(19) the current address of a recipient of Minnesota family investment program, general
assistance, or SNAP benefits may be disclosed to law enforcement officers who, in writing,
provide the name of the recipient and notify the agency that the recipient is a person required
to register under section 243.166, but is not residing at the address at which the recipient is
registered under section 243.166;

(20) certain information regarding child support obligors who are in arrears may be
made public according to section 518A.74;

(21) data on child support payments made by a child support obligor and data on the
distribution of those payments excluding identifying information on obligees may be
disclosed to all obligees to whom the obligor owes support, and data on the enforcement
actions undertaken by the public authority, the status of those actions, and data on the income
of the obligor or obligee may be disclosed to the other party;

(22) data in the work reporting system may be disclosed under section 142A.29,
subdivision 7;

(23) to the Department of Education for the purpose of matching Department of Education
student data with public assistance data to determine students eligible for free and
reduced-price meals, meal supplements, and free milk according to United States Code,
title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to allocate federal and state
funds that are distributed based on income of the student's family; and to verify receipt of
energy assistance for the telephone assistance plan;

(24) the current address and telephone number of program recipients and emergency
contacts may be released to the commissioner of health or a community health board as
defined in section 145A.02, subdivision 5, when the commissioner or community health
board has reason to believe that a program recipient is a disease case, carrier, suspect case,
or at risk of illness, and the data are necessary to locate the person;

(25) to other state agencies, statewide systems, and political subdivisions of this state,
including the attorney general, and agencies of other states, interstate information networks,
federal agencies, and other entities as required by federal regulation or law for the
administration of the child support enforcement program;

(26) to personnel of public assistance programs as defined in section 518A.81, for access
to the child support system database for the purpose of administration, including monitoring
and evaluation of those public assistance programs;

(27) to monitor and evaluate the Minnesota family investment program by exchanging
data between the Departments of Human Services; Children, Youth, and Families; and
Education, on recipients and former recipients of SNAP benefits, cash assistance under
chapter 142F, 256D, 256J, or 256K, child care assistance under chapter 142E, medical
programs under chapter 256B or 256L, or a medical program formerly codified under chapter
256D;

(28) to evaluate child support program performance and to identify and prevent fraud
in the child support program by exchanging data between the Department of Human Services;
Department of Children, Youth, and Families; Department of Revenue under section 270B.14,
subdivision 1, paragraphs (a) and (b), without regard to the limitation of use in paragraph
(c); Department of Health; Department of Employment and Economic Development; and
other state agencies as is reasonably necessary to perform these functions;

(29) counties and the Department of Children, Youth, and Families operating child care
assistance programs under chapter 142E may disseminate data on program participants,
applicants, and providers to the commissioner of education;

(30) child support data on the child, the parents, and relatives of the child may be
disclosed to agencies administering programs under titles IV-B and IV-E of the Social
Security Act, as authorized by federal law;

(31) to a health care provider governed by sections 144.291 to 144.298, to the extent
necessary to coordinate services;

(32) to the chief administrative officer of a school to coordinate services for a student
and family; data that may be disclosed under this clause are limited to name, date of birth,
gender, and address;

(33) to county correctional agencies to the extent necessary to coordinate services and
diversion programs; data that may be disclosed under this clause are limited to name, client
demographics, program, case status, and county worker information; or

(34) between the Department of Human Services and the Metropolitan Council for the
following purposes:

(i) to coordinate special transportation service provided under section 473.386 with
services for people with disabilities and elderly individuals funded by or through the
Department of Human Services; and

(ii) to provide for reimbursement of special transportation service provided under section
473.386.

The data that may be shared under this clause are limited to the individual's first, last, and
middle names; date of birth; residential address; and program eligibility status with expiration
date for the purposes of informing the other party of program eligibility.

(b) Information on persons who have been treated for substance use disorder may only
be disclosed according to the requirements of Code of Federal Regulations, title 42, sections
2.1 to 2.67.

(c) Data provided to law enforcement agencies under paragraph (a), clause (15), (16),
(17), or (18), or paragraph (b), are investigative data and are confidential or protected
nonpublic while the investigation is active. The data are private after the investigation
becomes inactive under section 13.82, subdivision 7, clause (a) or (b).

(d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but are
not subject to the access provisions of subdivision 10, paragraph (b).

For the purposes of this subdivision, a request will be deemed to be made in writing if
made through a computer interface system.

Sec. 2.

Minnesota Statutes 2024, section 13.46, subdivision 3, is amended to read:

Subd. 3.

Investigative data.

(a) Data on persons, including data on vendors of services,
licensees, and applicants that is collected, maintained, used, or disseminated by the welfare
system in an investigation, authorized by statute, and relating to the enforcement of rules
or law are confidential data on individuals pursuant to section 13.02, subdivision 3, or
protected nonpublic data not on individuals pursuant to section 13.02, subdivision 13, and
shall not be disclosed except:

(1) pursuant to section 13.05;

(2) pursuant to statute or valid court order;

(3) to a party named in a civil or criminal proceeding, administrative or judicial, for
preparation of defense;

(4) to an agent deleted text begin of the welfare system deleted text end or deleted text begin an deleted text end investigator acting on behalf of a county,
state, or federal government, including a law enforcement officer or attorney in the
investigation or prosecution of a criminal, civil, or administrative proceeding, unless the
commissioner of human services or commissioner of children, youth, and families determines
that disclosure may compromise a Department of Human Services or Department of Children,
Youth, and Families ongoing investigation; or

(5) to provide notices required or permitted by statute.

The data referred to in this subdivision shall be classified as public data upon submission
to an administrative law judge or court in an administrative or judicial proceeding. Inactive
welfare investigative data shall be treated as provided in section 13.39, subdivision 3.

(b) Notwithstanding any other provision in law, the commissioner of human services
shall provide all active and inactive investigative data, including the name of the reporter
of alleged maltreatment under section 626.557 or chapter 260E, to the ombudsman for
mental health and developmental disabilities upon the request of the ombudsman.

(c) Notwithstanding paragraph (a) and section 13.39, the existence of an investigation
by the commissioner of human services of possible overpayments of public funds to a service
provider or recipient new text begin or the reduction or withholding of payments new text end may be disclosed if the
commissioner determines that it will not compromise the investigation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 3.

Minnesota Statutes 2024, section 142E.51, subdivision 5, is amended to read:

Subd. 5.

Administrative disqualification of child care providers caring for children
receiving child care assistance.

(a) The department shall pursue an administrative
disqualification, if the child care provider is accused of committing an intentional program
violation, in lieu of a criminal action when it has not been pursued. Intentional program
violations include intentionally making false or misleading statements; new text begin receiving or providing
a kickback, as defined in subdivision 6, paragraph (b); new text end intentionally misrepresenting,
concealing, or withholding facts; and repeatedly and intentionally violating program
regulations under this chapter. Intent may be proven by demonstrating a pattern of conduct
that violates program rules under this chapter.

(b) To initiate an administrative disqualification, the commissioner must send written
notice using a signature-verified confirmed delivery method to the provider against whom
the action is being taken. Unless otherwise specified under this chapter or Minnesota Rules,
chapter 3400, the commissioner must send the written notice at least 15 calendar days before
the adverse action's effective date. The notice shall state (1) the factual basis for the agency's
determination, (2) the action the agency intends to take, (3) the dollar amount of the monetary
recovery or recoupment, if known, and (4) the provider's right to appeal the agency's proposed
action.

(c) The provider may appeal an administrative disqualification by submitting a written
request to the state agency. A provider's request must be received by the state agency no
later than 30 days after the date the commissioner mails the notice.

(d) The provider's appeal request must contain the following:

(1) each disputed item, the reason for the dispute, and, if applicable, an estimate of the
dollar amount involved for each disputed item;

(2) the computation the provider believes to be correct, if applicable;

(3) the statute or rule relied on for each disputed item; and

(4) the name, address, and telephone number of the person at the provider's place of
business with whom contact may be made regarding the appeal.

(e) On appeal, the issuing agency bears the burden of proof to demonstrate by a
preponderance of the evidence that the provider committed an intentional program violation.

(f) The hearing is subject to the requirements of section 142A.20. The human services
judge may combine a fair hearing and administrative disqualification hearing into a single
hearing if the factual issues arise out of the same or related circumstances and the provider
receives prior notice that the hearings will be combined.

(g) A provider found to have committed an intentional program violation and is
administratively disqualified must be disqualified, for a period of three years for the first
offense and permanently for any subsequent offense, from receiving any payments from
any child care program under this chapter.

(h) Unless a timely and proper appeal made under this section is received by the
department, the administrative determination of the department is final and binding.

Sec. 4.

Minnesota Statutes 2024, section 142E.51, subdivision 6, is amended to read:

Subd. 6.

Prohibited hiring deleted text begin practice deleted text end new text begin practices new text end .

new text begin (a) new text end It is prohibited to hire a child care
center employee when, as a condition of employment, the employee is required to have one
or more children who are eligible for or receive child care assistance, if:

(1) the individual hiring the employee is, or is acting at the direction of or in cooperation
with, a child care center provider, center owner, director, manager, license holder, or other
controlling individual; and

(2) the individual hiring the employee knows or has reason to know the purpose in hiring
the employee is to obtain child care assistance program funds.

new text begin (b) Program applicants, participants, and providers are prohibited from receiving or
providing a kickback or payment in exchange for obtaining or attempting to obtain child
care assistance benefits for their own financial gain. This paragraph does not apply to:
new text end

new text begin (1) marketing or promotional offerings that directly benefit an applicant or recipient's
child or dependent for whom the child care provider is providing child care services; or
new text end

new text begin (2) child care provider discounts, scholarships, or other financial assistance allowed
under section 142E.17, subdivision 7.
new text end

new text begin (c) An attempt to buy or sell access to a family's child care subsidy benefits to an
unauthorized person by an applicant, a participant, or a provider is a kickback, an intentional
program violation under subdivision 5, and wrongfully obtaining assistance under section
256.98.
new text end

Sec. 5.

Minnesota Statutes 2024, section 245.095, subdivision 5, is amended to read:

Subd. 5.

Withholding of payments.

(a) Except as otherwise provided by state or federal
law, the commissioner may withhold payments to a provider, vendor, individual, associated
individual, or associated entity in any program administered by the commissioner if the
commissioner determines new text begin :
new text end

new text begin (1) new text end there is a credible allegation of fraud for which an investigation is pending for a
program administered by a Minnesota state or federal agency deleted text begin . deleted text end new text begin ;
new text end

new text begin (2) the individual, the entity, or an associated individual or entity was convicted of a
crime charged in state or federal court with an offense that involves fraud or theft against
a program administered by the commissioner or another Minnesota state or federal agency.
For purposes of this subdivision, "convicted" means a judgment of conviction has been
entered by a federal, state, or local court, regardless of whether an appeal from the judgment
is pending, and includes a stay of adjudication, a court-ordered diversion program, or a plea
of guilty or nolo contendere;
new text end

new text begin (3) the provider is operating after a Minnesota state or federal agency orders the
suspension, revocation, or decertification of the provider's license;
new text end

new text begin (4) the provider, vendor, associated individual, or associated entity, including those
receiving funds under any contract or registered program, has a background study
disqualification under chapter 245C that has not been set aside and for which no variance
has been issued, except for a disqualification under sections 245C.14, subdivision 5, and
245C.15, subdivision 4c; or
new text end

new text begin (5) by a preponderance of the evidence that the provider, vendor, individual, associated
individual, or associated entity intentionally provided materially false information when
billing the commissioner.
new text end

(b) For purposes of this subdivision, "credible allegation of fraud" means an allegation
that has been verified by the commissioner from any source, including but not limited to:

(1) fraud hotline complaints;

(2) claims data mining;

(3) patterns identified through provider audits, civil false claims cases, and law
enforcement investigations; and

(4) court filings and other legal documents, including but not limited to police reports,
complaints, indictments, informations, affidavits, declarations, and search warrants.

(c) The commissioner must send notice of the withholding of payments within five days
of taking such action. The notice must:

(1) state that payments are being withheld according to this subdivision;

(2) set forth the general allegations related to the withholding action, except the notice
need not disclose specific information concerning an ongoing investigation;

(3) state that the withholding is for a temporary period and cite the circumstances under
which the withholding will be terminated; and

(4) inform the provider, vendor, individual, associated individual, or associated entity
of the right to submit written evidence to contest the withholding action for consideration
by the commissioner.

(d) If the commissioner withholds payments under this subdivision, the provider, vendor,
individual, associated individual, or associated entity has a right to request administrative
reconsideration. A request for administrative reconsideration must be made in writing, state
with specificity the reasons the payment withholding decision is in error, and include
documents to support the request. Within 60 days from receipt of the request, the
commissioner shall judiciously review allegations, facts, evidence available to the
commissioner, and information submitted by the provider, vendor, individual, associated
individual, or associated entity to determine whether the payment withholding should remain
in place.

(e) The commissioner shall stop withholding payments if the commissioner determines
there is insufficient evidence of fraud by the provider, vendor, individual, associated
individual, or associated entity or when legal proceedings relating to the alleged fraud are
completed, unless the commissioner has sent notice under subdivision 3 to the provider,
vendor, individual, associated individual, or associated entity.

(f) The withholding of payments is a temporary action and is not subject to appeal under
section 256.045 or chapter 14.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 6.

Minnesota Statutes 2024, section 245.095, is amended by adding a subdivision to
read:

new text begin Subd. 6. new text end

new text begin Data practices. new text end

new text begin The commissioner may exchange information, including claims
data, with state or federal agencies, professional boards, departments, or programs for the
purpose of investigating or prosecuting a criminal, civil, or administrative proceeding related
to suspected fraud or exclusion from any program administered by a state or federal agency.
new text end

Sec. 7.

Minnesota Statutes 2024, section 245A.04, subdivision 1, is amended to read:

Subdivision 1.

Application for licensure.

(a) An individual, organization, or government
entity that is subject to licensure under section 245A.03 must apply for a license. The
application must be made on the forms and in the manner prescribed by the commissioner.
The commissioner shall provide the applicant with instruction in completing the application
and provide information about the rules and requirements of other state agencies that affect
the applicant. An applicant seeking licensure in Minnesota with headquarters outside of
Minnesota must have a program office located within 30 miles of the Minnesota border.
An applicant who intends to buy or otherwise acquire a program or services licensed under
this chapter that is owned by another license holder must apply for a license under this
chapter and comply with the application procedures in this section and section 245A.043.

The commissioner shall act on the application within 90 working days after a complete
application and any required reports have been received from other state agencies or
departments, counties, municipalities, or other political subdivisions. The commissioner
shall not consider an application to be complete until the commissioner receives all of the
required information. new text begin If the applicant or a controlling individual is the subject of a pending
administrative, civil, or criminal investigation, the application is not complete until the
investigation has closed or the related legal proceedings are complete.
new text end

When the commissioner receives an application for initial licensure that is incomplete
because the applicant failed to submit required documents or that is substantially deficient
because the documents submitted do not meet licensing requirements, the commissioner
shall provide the applicant written notice that the application is incomplete or substantially
deficient. In the written notice to the applicant the commissioner shall identify documents
that are missing or deficient and give the applicant 45 days to resubmit a second application
that is substantially complete. An applicant's failure to submit a substantially complete
application after receiving notice from the commissioner is a basis for license denial under
section 245A.043.

(b) An application for licensure must identify all controlling individuals as defined in
section 245A.02, subdivision 5a, and must designate one individual to be the authorized
agent. The application must be signed by the authorized agent and must include the authorized
agent's first, middle, and last name; mailing address; and email address. By submitting an
application for licensure, the authorized agent consents to electronic communication with
the commissioner throughout the application process. The authorized agent must be
authorized to accept service on behalf of all of the controlling individuals. A government
entity that holds multiple licenses under this chapter may designate one authorized agent
for all licenses issued under this chapter or may designate a different authorized agent for
each license. Service on the authorized agent is service on all of the controlling individuals.
It is not a defense to any action arising under this chapter that service was not made on each
controlling individual. The designation of a controlling individual as the authorized agent
under this paragraph does not affect the legal responsibility of any other controlling individual
under this chapter.

(c) An applicant or license holder must have a policy that prohibits license holders,
employees, subcontractors, and volunteers, when directly responsible for persons served
by the program, from abusing prescription medication or being in any manner under the
influence of a chemical that impairs the individual's ability to provide services or care. The
license holder must train employees, subcontractors, and volunteers about the program's
drug and alcohol policy.

(d) An applicant and license holder must have a program grievance procedure that permits
persons served by the program and their authorized representatives to bring a grievance to
the highest level of authority in the program.

(e) The commissioner may limit communication during the application process to the
authorized agent or the controlling individuals identified on the license application and for
whom a background study was initiated under chapter 245C. Upon implementation of the
provider licensing and reporting hub, applicants and license holders must use the hub in the
manner prescribed by the commissioner. The commissioner may require the applicant,
except for child foster care, to demonstrate competence in the applicable licensing
requirements by successfully completing a written examination. The commissioner may
develop a prescribed written examination format.

(f) When an applicant is an individual, the applicant must provide:

(1) the applicant's taxpayer identification numbers including the Social Security number
or Minnesota tax identification number, and federal employer identification number if the
applicant has employees;

(2) at the request of the commissioner, a copy of the most recent filing with the secretary
of state that includes the complete business name, if any;

(3) if doing business under a different name, the doing business as (DBA) name, as
registered with the secretary of state;

(4) if applicable, the applicant's National Provider Identifier (NPI) number and Unique
Minnesota Provider Identifier (UMPI) number; and

(5) at the request of the commissioner, the notarized signature of the applicant or
authorized agent.

(g) When an applicant is an organization, the applicant must provide:

(1) the applicant's taxpayer identification numbers including the Minnesota tax
identification number and federal employer identification number;

(2) at the request of the commissioner, a copy of the most recent filing with the secretary
of state that includes the complete business name, and if doing business under a different
name, the doing business as (DBA) name, as registered with the secretary of state;

(3) the first, middle, and last name, and address for all individuals who will be controlling
individuals, including all officers, owners, and managerial officials as defined in section
245A.02, subdivision 5a, and the date that the background study was initiated by the applicant
for each controlling individual;

(4) if applicable, the applicant's NPI number and UMPI number;

(5) the documents that created the organization and that determine the organization's
internal governance and the relations among the persons that own the organization, have
an interest in the organization, or are members of the organization, in each case as provided
or authorized by the organization's governing statute, which may include a partnership
agreement, bylaws, articles of organization, organizational chart, and operating agreement,
or comparable documents as provided in the organization's governing statute; and

(6) the notarized signature of the applicant or authorized agent.

(h) When the applicant is a government entity, the applicant must provide:

(1) the name of the government agency, political subdivision, or other unit of government
seeking the license and the name of the program or services that will be licensed;

(2) the applicant's taxpayer identification numbers including the Minnesota tax
identification number and federal employer identification number;

(3) a letter signed by the manager, administrator, or other executive of the government
entity authorizing the submission of the license application; and

(4) if applicable, the applicant's NPI number and UMPI number.

(i) At the time of application for licensure or renewal of a license under this chapter, the
applicant or license holder must acknowledge on the form provided by the commissioner
if the applicant or license holder elects to receive any public funding reimbursement from
the commissioner for services provided under the license that:

(1) the applicant's or license holder's compliance with the provider enrollment agreement
or registration requirements for receipt of public funding may be monitored by the
commissioner as part of a licensing investigation or licensing inspection; and

(2) noncompliance with the provider enrollment agreement or registration requirements
for receipt of public funding that is identified through a licensing investigation or licensing
inspection, or noncompliance with a licensing requirement that is a basis of enrollment for
reimbursement for a service, may result in:

(i) a correction order or a conditional license under section 245A.06, or sanctions under
section 245A.07;

(ii) nonpayment of claims submitted by the license holder for public program
reimbursement;

(iii) recovery of payments made for the service;

(iv) disenrollment in the public payment program; or

(v) other administrative, civil, or criminal penalties as provided by law.

Sec. 8.

Minnesota Statutes 2024, section 245A.05, is amended to read:

245A.05 DENIAL OF APPLICATION.

(a) The commissioner may deny a license if an applicant or controlling individual:

(1) fails to submit a substantially complete application after receiving notice from the
commissioner under section 245A.04, subdivision 1;

(2) fails to comply with applicable laws or rules;

(3) knowingly withholds relevant information from or gives false or misleading
information to the commissioner in connection with an application for a license or during
an investigation;

(4) has a disqualification that has not been set aside under section 245C.22 and no
variance has been granted;

(5) has an individual living in the household who received a background study under
section 245C.03, subdivision 1, paragraph (a), clause (2), who has a disqualification that
has not been set aside under section 245C.22, and no variance has been granted;

(6) is associated with an individual who received a background study under section
245C.03, subdivision 1, paragraph (a), clause (6), who may have unsupervised access to
children or vulnerable adults, and who has a disqualification that has not been set aside
under section 245C.22, and no variance has been granted;

(7) fails to comply with section 245A.04, subdivision 1, paragraph (f) or (g);

(8) fails to demonstrate competent knowledge as required by section 245A.04, subdivision
6;

(9) has a history of noncompliance as a license holder or controlling individual with
applicable laws or rules, including but not limited to this chapter and chapters 142E and
245C; deleted text begin or
deleted text end

(10) is prohibited from holding a license according to section 245.095 deleted text begin . deleted text end new text begin ; or
new text end

new text begin (11) is the subject of a pending administrative, civil, or criminal investigation.
new text end

(b) An applicant whose application has been denied by the commissioner must be given
notice of the denial, which must state the reasons for the denial in plain language. Notice
must be given by certified mail, by personal service, or through the provider licensing and
reporting hub. The notice must state the reasons the application was denied and must inform
the applicant of the right to a contested case hearing under chapter 14 and Minnesota Rules,
parts 1400.8505 to 1400.8612. The applicant may appeal the denial by notifying the
commissioner in writing by certified mail, by personal service, or through the provider
licensing and reporting hub. If mailed, the appeal must be postmarked and sent to the
commissioner within 20 calendar days after the applicant received the notice of denial. If
an appeal request is made by personal service, it must be received by the commissioner
within 20 calendar days after the applicant received the notice of denial. If the order is issued
through the provider hub, the appeal must be received by the commissioner within 20
calendar days from the date the commissioner issued the order through the hub. Section
245A.08 applies to hearings held to appeal the commissioner's denial of an application.

Sec. 9.

Minnesota Statutes 2024, section 245A.07, subdivision 2, is amended to read:

Subd. 2.

Temporary immediate suspension.

(a) The commissioner shall act immediately
to temporarily suspend a license issued under this chapter if:

(1) the license holder's new text begin or controlling individual's new text end actions or failure to comply with
applicable law or rule, or the actions of other individuals or conditions in the program, pose
an imminent risk of harm to the health, safety, or rights of persons served by the program;

(2) while the program continues to operate pending an appeal of an order of revocation,
the commissioner identifies one or more subsequent violations of law or rule which may
adversely affect the health or safety of persons served by the program; or

(3) the license holder new text begin or controlling individual new text end is criminally charged in state or federal
court with an offense that involves fraud or theft against a program administered by deleted text begin the
commissioner deleted text end new text begin a state or federal agency new text end .

(b) No state funds shall be made available or be expended by any agency or department
of state, county, or municipal government for use by a license holder regulated under this
chapter while a license issued under this chapter is under immediate suspension. A notice
stating the reasons for the immediate suspension and informing the license holder of the
right to an expedited hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to
1400.8612, must be delivered by personal service to the address shown on the application
or the last known address of the license holder. The license holder may appeal an order
immediately suspending a license. The appeal of an order immediately suspending a license
must be made in writing by certified mail, personal service, or other means expressly set
forth in the commissioner's order. If mailed, the appeal must be postmarked and sent to the
commissioner within five calendar days after the license holder receives notice that the
license has been immediately suspended. If a request is made by personal service, it must
be received by the commissioner within five calendar days after the license holder received
the order. A license holder and any controlling individual shall discontinue operation of the
program upon receipt of the commissioner's order to immediately suspend the license.

new text begin (c) The commissioner may act immediately to temporarily suspend a license issued
under this chapter if the license holder or controlling individual is the subject of a pending
administrative, civil, or criminal investigation or subject to an administrative or civil action
related to fraud against a program administered by a state or federal agency.
new text end

Sec. 10.

new text begin [245A.142] EARLY INTENSIVE DEVELOPMENTAL AND BEHAVIORAL
INTERVENTION PROVISIONAL LICENSURE.
new text end

new text begin Subdivision 1. new text end

new text begin Regulatory powers. new text end

new text begin The commissioner shall regulate early intensive
developmental and behavioral intervention (EIDBI) agencies pursuant to this section.
new text end

new text begin Subd. 2. new text end

new text begin Provisional license. new text end

new text begin (a) The commissioner shall issue a provisional license to
an agency providing EIDBI services as described in section 256B.0949 that meet the
requirements of this section by .... A provisional license is effective for up to one year from
the initial effective date of the license, except that a provisional license may be extended
according to subdivisions ..., paragraph (b), and 3.
new text end

new text begin (b) Beginning ...., no agency providing EIDBI services may operate in Minnesota unless
licensed under this section.
new text end

new text begin Subd. 3. new text end

new text begin Provisional license regulatory functions. new text end

new text begin The commissioner may:
new text end

new text begin (1) license, survey, and monitor without advance notice in accordance with this section;
new text end

new text begin (2) investigate reports of maltreatment;
new text end

new text begin (3) investigate complaints against EIDBI agencies;
new text end

new text begin (4) issue correction orders and assess monetary penalties; and
new text end

new text begin (5) take other action reasonably required to accomplish the purposes of this section.
new text end

new text begin Subd. 4. new text end

new text begin Provisional license requirements. new text end

new text begin (a) A provisional license holder must:
new text end

new text begin (1) identify all controlling individuals, as defined in section 245A.02, subdivision 5a,
for the agency;
new text end

new text begin (2) provide documented disclosures surrounding the use of billing agencies or other
consultants, available to the department upon request;
new text end

new text begin (3) establish provider policies and procedures related to staff training, staff qualifications,
quality assurance, and service activities;
new text end

new text begin (4) document contracts with independent contractors for qualified supervising
professionals, including the number of hours contracted and responsibilities, available to
the department upon request; and
new text end

new text begin (5) comply with section 256B.0949, subdivisions 2, 3a, 6, 7, 14, 15, 16, and 16a.
new text end

new text begin (b) Provisional license holders must comply with this section within 90 calendar days
from the effective date of the provisional license.
new text end

new text begin Subd. 5. new text end

new text begin Reporting of maltreatment. new text end

new text begin A provisional license holder must comply with
the requirements of reporting of maltreatment of vulnerable adults and minors under section
626.557 and chapter 260E.
new text end

new text begin Subd. 6. new text end

new text begin Background studies. new text end

new text begin A provisional license holder must initiate a background
study through the commissioner's NETStudy system as provided under sections 245C.03,
subdivision 15, and 245C.10, subdivision 17.
new text end

new text begin Subd. 7. new text end

new text begin Sanctions. new text end

new text begin If the provisional license holder is not in substantial compliance
with the requirements of this section after 90 days following the effective date of the
provisional license, the commissioner may either: (1) not renew or terminate the provisional
license; or (2) extend the provisional license for a period not to exceed 90 calendar days
and apply conditions necessary to bring the facility into substantial compliance. If the
provisional license holder is not in substantial compliance within the time allowed by the
extension or does not satisfy the license conditions, the commissioner may terminate the
license.
new text end

new text begin Subd. 8. new text end

new text begin Reconsideration. new text end

new text begin (a) If a provisional license holder disagrees with a sanction
under subdivision 7, the provisional license holder may request reconsideration by the
commissioner. The reconsideration request process must be conducted internally by the
commissioner and is not an administrative appeal under chapter 14 or section 256.045.
new text end

new text begin (b) The provisional licensee requesting the reconsideration must make the request in
writing and list and describe the reasons why the provisional licensee disagrees with the
sanction under subdivision 7.
new text end

new text begin (c) The reconsideration request and supporting documentation must be received by the
commissioner within 15 calendar days after the date the provisional licensee receives notice
of the sanction under subdivision 7.
new text end

new text begin Subd. 9. new text end

new text begin Continued operation. new text end

new text begin A provisional license holder may continue to operate
after receiving notice of nonrenewal or termination:
new text end

new text begin (1) during the 15 calendar day reconsideration window;
new text end

new text begin (2) during the pendency of a reconsideration; or
new text end

new text begin (3) while in active negotiation with the commissioner for an extension of the provisional
license with conditions, and the commissioner confirms the negotiation is active.
new text end

new text begin Subd. 10. new text end

new text begin Transition to nonprovisional EIDBI license; future licensure standards. new text end

new text begin (a)
The commissioner must develop a process and transition plan for comprehensive EIDBI
agency licensure by January 1, 2026.
new text end

new text begin (b) By December 1, 2026, the commissioner shall establish standards for nonprovisional
EIDBI agency licensure and submit proposed legislation to the chairs and ranking minority
members of the legislative committees with jurisdiction over human services licensing.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 11.

Minnesota Statutes 2024, section 245C.13, subdivision 2, is amended to read:

Subd. 2.

Activities pending completion of background study.

The subject of a
background study may not perform any activity requiring a background study under
paragraph (c) until the commissioner has issued one of the notices under paragraph (a).

(a) Notices from the commissioner required prior to activity under paragraph (c) include:

(1) a notice of the study results under section 245C.17 stating that:

(i) the individual is not disqualified; or

(ii) more time is needed to complete the study but the individual is not required to be
removed from direct contact or access to people receiving services prior to completion of
the study as provided under section 245C.17, subdivision 1, paragraph (b) or (c). The notice
that more time is needed to complete the study must also indicate whether the individual is
required to be under continuous direct supervision prior to completion of the background
study. When more time is necessary to complete a background study of an individual
affiliated with a Title IV-E eligible children's residential facility or foster residence setting,
the individual may not work in the facility or setting regardless of whether or not the
individual is supervised;

(2) a notice that a disqualification has been set aside under section 245C.23; or

(3) a notice that a variance has been granted related to the individual under section
245C.30.

(b) For a background study affiliated with a licensed child care center or certified
license-exempt child care center, the notice sent under paragraph (a), clause (1), item (ii),
new text begin must not be issued until the commissioner receives a qualifying result for the individual for
the fingerprint-based national criminal history record check or the fingerprint-based criminal
history information from the Bureau of Criminal Apprehension. The notice new text end must require
the individual to be under continuous direct supervision prior to completion of new text begin the remainder
of new text end the background study except as permitted in subdivision 3.

(c) Activities prohibited prior to receipt of notice under paragraph (a) include:

(1) being issued a license;

(2) living in the household where the licensed program will be provided;

(3) providing direct contact services to persons served by a program unless the subject
is under continuous direct supervision;

(4) having access to persons receiving services if the background study was completed
under section 144.057, subdivision 1, or 245C.03, subdivision 1, paragraph (a), clause (2),
(5), or (6), unless the subject is under continuous direct supervision;

(5) for licensed child care centers and certified license-exempt child care centers,
providing direct contact services to persons served by the program;

(6) for children's residential facilities or foster residence settings, working in the facility
or setting; deleted text begin or
deleted text end

(7) for background studies affiliated with a personal care provider organization, except
as provided in section 245C.03, subdivision 3b, before a personal care assistant provides
services, the personal care assistance provider agency must initiate a background study of
the personal care assistant under this chapter and the personal care assistance provider
agency must have received a notice from the commissioner that the personal care assistant
is:

(i) not disqualified under section 245C.14; or

(ii) disqualified, but the personal care assistant has received a set aside of the
disqualification under section 245C.22 deleted text begin . deleted text end new text begin ; or
new text end

new text begin (8) for background studies affiliated with an early intensive developmental and behavioral
intervention provider, before an individual provides services, the early intensive
developmental and behavioral intervention provider must initiate a background study for
the individual under this chapter and the early intensive developmental and behavioral
intervention provider must have received a notice from the commissioner that the individual
is:
new text end

new text begin (i) not disqualified under section 245C.14; or
new text end

new text begin (ii) disqualified, but the individual has received a set aside of the disqualification under
section 245C.22.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 15, 2026.
new text end

Sec. 12.

Minnesota Statutes 2024, section 245C.14, is amended by adding a subdivision
to read:

new text begin Subd. 4c. new text end

new text begin Two-year disqualification. new text end

new text begin An individual is disqualified under section
245C.14, subdivision 6, if less than two years has passed since a determination that the
individual violated section 142A.12, 245.095, or 256B.064.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 13.

Minnesota Statutes 2024, section 245C.14, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Disqualification from owning, operating, or billing. new text end

new text begin The commissioner shall
disqualify an individual who is the subject of a background study from any position involving
ownership, management, or control of a program or billing activities if a background study
completed under this chapter shows a violation of section 142A.12, 245.095, or 256B.064.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 14.

Minnesota Statutes 2024, section 245C.15, subdivision 1, is amended to read:

Subdivision 1.

Permanent disqualification.

(a) An individual is disqualified under
section 245C.14 if: (1) regardless of how much time has passed since the discharge of the
sentence imposed, if any, for the offense; and (2) unless otherwise specified, regardless of
the level of the offense, the individual has committed any of the following offenses: sections
243.166 (violation of predatory offender registration law); 609.185 (murder in the first
degree); 609.19 (murder in the second degree); 609.195 (murder in the third degree); 609.20
(manslaughter in the first degree); 609.205 (manslaughter in the second degree); a felony
offense under 609.221 or 609.222 (assault in the first or second degree); a felony offense
under sections 609.2242 and 609.2243 (domestic assault), spousal abuse, child abuse or
neglect, or a crime against children; 609.2247 (domestic assault by strangulation); 609.228
(great bodily harm caused by distribution of drugs); 609.245 (aggravated robbery); 609.247,
subdivision 2 or 3 (carjacking in the first or second degree); 609.25 (kidnapping); 609.2661
(murder of an unborn child in the first degree); 609.2662 (murder of an unborn child in the
second degree); 609.2663 (murder of an unborn child in the third degree); 609.322
(solicitation, inducement, and promotion of prostitution); 609.324, subdivision 1 (other
prohibited acts); 609.342 (criminal sexual conduct in the first degree); 609.343 (criminal
sexual conduct in the second degree); 609.344 (criminal sexual conduct in the third degree);
609.345 (criminal sexual conduct in the fourth degree); 609.3451 (criminal sexual conduct
in the fifth degree); 609.3453 (criminal sexual predatory conduct); 609.3458 (sexual
extortion); 609.352 (solicitation of children to engage in sexual conduct); 609.365 (incest);
a felony offense under 609.377 (malicious punishment of a child); new text begin 609.3775 (child torture); new text end
a felony offense under 609.378 (neglect or endangerment of a child); 609.561 (arson in the
first degree); 609.66, subdivision 1e (drive-by shooting); 609.749, subdivision 3, 4, or 5
(felony-level harassment or stalking); 609.855, subdivision 5 (shooting at or in a public
transit vehicle or facility); 617.23, subdivision 2, clause (1), or subdivision 3, clause (1)
(indecent exposure involving a minor); 617.246 (use of minors in sexual performance
prohibited); 617.247 (possession of pictorial representations of minors); or, for a child care
background study subject, conviction of a crime that would make the individual ineligible
for employment under United States Code, title 42, section 9858f, except for a felony drug
conviction, regardless of whether a period of disqualification under subdivisions 2 to 4,
would apply if the individual were not a child care background study subject.

(b) An individual's aiding and abetting, attempt, or conspiracy to commit any of the
offenses listed in paragraph (a), as each of these offenses is defined in Minnesota Statutes,
permanently disqualifies the individual under section 245C.14.

(c) 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), permanently disqualifies
the individual under section 245C.14.

(d) When a disqualification is based on a judicial determination other than a conviction,
the disqualification period begins from the date of the court order. When a disqualification
is based on an admission, the disqualification period begins from the date of an admission
in court. When a disqualification is based on an Alford Plea, the disqualification period
begins from the date the Alford Plea is entered in court. When a disqualification is based
on a preponderance of evidence of a disqualifying act, the disqualification date begins from
the date of the dismissal, the date of discharge of the sentence imposed for a conviction for
a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.

(e) If the individual studied commits one of the offenses listed in paragraph (a) that is
specified as a felony-level only offense, but the sentence or level of offense is a gross
misdemeanor or misdemeanor, the individual is disqualified, but the disqualification
look-back period for the offense is the period applicable to gross misdemeanor or
misdemeanor offenses.

(f) A child care background study subject shall be disqualified if the individual is
registered, or required to be registered, on a state sex offender registry or repository or the
National Sex Offender Registry.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 15.

Minnesota Statutes 2024, section 245C.15, subdivision 4a, is amended to read:

Subd. 4a.

Licensed family foster setting disqualifications.

(a) Notwithstanding
subdivisions 1 to 4, for a background study affiliated with a licensed family foster setting,
regardless of how much time has passed, an individual is disqualified under section 245C.14
if the individual committed an act that resulted in a felony-level conviction for sections:
609.185 (murder in the first degree); 609.19 (murder in the second degree); 609.195 (murder
in the third degree); 609.20 (manslaughter in the first degree); 609.205 (manslaughter in
the second degree); 609.2112 (criminal vehicular homicide); 609.221 (assault in the first
degree); 609.223, subdivision 2 (assault in the third degree, past pattern of child abuse);
609.223, subdivision 3 (assault in the third degree, victim under four); a felony offense
under sections 609.2242 and 609.2243 (domestic assault, spousal abuse, child abuse or
neglect, or a crime against children); 609.2247 (domestic assault by strangulation); 609.2325
(criminal abuse of a vulnerable adult resulting in the death of a vulnerable adult); 609.245
(aggravated robbery); 609.247, subdivision 2 or 3 (carjacking in the first or second degree);
609.25 (kidnapping); 609.255 (false imprisonment); 609.2661 (murder of an unborn child
in the first degree); 609.2662 (murder of an unborn child in the second degree); 609.2663
(murder of an unborn child in the third degree); 609.2664 (manslaughter of an unborn child
in the first degree); 609.2665 (manslaughter of an unborn child in the second degree);
609.267 (assault of an unborn child in the first degree); 609.2671 (assault of an unborn child
in the second degree); 609.268 (injury or death of an unborn child in the commission of a
crime); 609.322, subdivision 1 (solicitation, inducement, and promotion of prostitution; sex
trafficking in the first degree); 609.324, subdivision 1 (other prohibited acts; engaging in,
hiring, or agreeing to hire minor to engage in prostitution); 609.342 (criminal sexual conduct
in the first degree); 609.343 (criminal sexual conduct in the second degree); 609.344 (criminal
sexual conduct in the third degree); 609.345 (criminal sexual conduct in the fourth degree);
609.3451 (criminal sexual conduct in the fifth degree); 609.3453 (criminal sexual predatory
conduct); 609.3458 (sexual extortion); 609.352 (solicitation of children to engage in sexual
conduct); 609.377 (malicious punishment of a child); new text begin 609.3775 (child torture); new text end 609.378
(neglect or endangerment of a child); 609.561 (arson in the first degree); 609.582, subdivision
1 (burglary in the first degree); 609.746 (interference with privacy); 617.23 (indecent
exposure); 617.246 (use of minors in sexual performance prohibited); or 617.247 (possession
of pictorial representations of minors).

(b) Notwithstanding subdivisions 1 to 4, for the purposes of a background study affiliated
with a licensed family foster setting, an individual is disqualified under section 245C.14,
regardless of how much time has passed, if the individual:

(1) committed an action under paragraph (e) that resulted in death or involved sexual
abuse, as defined in section 260E.03, subdivision 20;

(2) committed an act that resulted in a gross misdemeanor-level conviction for section
609.3451 (criminal sexual conduct in the fifth degree);

(3) committed an act against or involving a minor that resulted in a felony-level conviction
for: section 609.222 (assault in the second degree); 609.223, subdivision 1 (assault in the
third degree); 609.2231 (assault in the fourth degree); or 609.224 (assault in the fifth degree);
or

(4) committed an act that resulted in a misdemeanor or gross misdemeanor-level
conviction for section 617.293 (dissemination and display of harmful materials to minors).

(c) Notwithstanding subdivisions 1 to 4, for a background study affiliated with a licensed
family foster setting, an individual is disqualified under section 245C.14 if fewer than 20
years have passed since the termination of the individual's parental rights under section
260C.301, subdivision 1, paragraph (b), or if the individual consented to a termination of
parental rights under section 260C.301, subdivision 1, paragraph (a), to settle a petition to
involuntarily terminate parental rights. An individual is disqualified under section 245C.14
if fewer than 20 years have passed since the termination of the individual's parental rights
in any other state or country, where the conditions for the individual's termination of parental
rights are substantially similar to the conditions in section 260C.301, subdivision 1, paragraph
(b).

(d) Notwithstanding subdivisions 1 to 4, for a background study affiliated with a licensed
family foster setting, an individual is disqualified under section 245C.14 if fewer than five
years have passed since a felony-level violation for sections: 152.021 (controlled substance
crime in the first degree); 152.022 (controlled substance crime in the second degree); 152.023
(controlled substance crime in the third degree); 152.024 (controlled substance crime in the
fourth degree); 152.025 (controlled substance crime in the fifth degree); 152.0261 (importing
controlled substances across state borders); 152.0262, subdivision 1, paragraph (b)
(possession of substance with intent to manufacture methamphetamine); 152.027, subdivision
6, paragraph (c) (sale or possession of synthetic cannabinoids); 152.096 (conspiracies
prohibited); 152.097 (simulated controlled substances); 152.136 (anhydrous ammonia;
prohibited conduct; criminal penalties; civil liabilities); 152.137 (methamphetamine-related
crimes involving children or vulnerable adults); 169A.24 (felony first-degree driving while
impaired); 243.166 (violation of predatory offender registration requirements); 609.2113
(criminal vehicular operation; bodily harm); 609.2114 (criminal vehicular operation; unborn
child); 609.228 (great bodily harm caused by distribution of drugs); 609.2325 (criminal
abuse of a vulnerable adult not resulting in the death of a vulnerable adult); 609.233 (criminal
neglect); 609.235 (use of drugs to injure or facilitate a crime); 609.24 (simple robbery);
609.247, subdivision 4 (carjacking in the third degree); 609.322, subdivision 1a (solicitation,
inducement, and promotion of prostitution; sex trafficking in the second degree); 609.498,
subdivision 1 (tampering with a witness in the first degree); 609.498, subdivision 1b
(aggravated first-degree witness tampering); 609.562 (arson in the second degree); 609.563
(arson in the third degree); 609.582, subdivision 2 (burglary in the second degree); 609.66
(felony dangerous weapons); 609.687 (adulteration); 609.713 (terroristic threats); 609.749,
subdivision 3, 4, or 5 (felony-level harassment or stalking); 609.855, subdivision 5 (shooting
at or in a public transit vehicle or facility); or 624.713 (certain people not to possess firearms).

(e) Notwithstanding subdivisions 1 to 4, except as provided in paragraph (a), for a
background study affiliated with a licensed family child foster care license, an individual
is disqualified under section 245C.14 if fewer than five years have passed since:

(1) a felony-level violation for an act not against or involving a minor that constitutes:
section 609.222 (assault in the second degree); 609.223, subdivision 1 (assault in the third
degree); 609.2231 (assault in the fourth degree); or 609.224, subdivision 4 (assault in the
fifth degree);

(2) a violation of an order for protection under section 518B.01, subdivision 14;

(3) a determination or disposition of the individual's failure to make required reports
under section 260E.06 or 626.557, subdivision 3, for incidents in which the final disposition
under chapter 260E or section 626.557 was substantiated maltreatment and the maltreatment
was recurring or serious;

(4) a determination or disposition of the individual's substantiated serious or recurring
maltreatment of a minor under chapter 260E, a vulnerable adult under section 626.557, or
serious or recurring maltreatment in any other state, the elements of which are substantially
similar to the elements of maltreatment under chapter 260E or section 626.557 and meet
the definition of serious maltreatment or recurring maltreatment;

(5) a gross misdemeanor-level violation for sections: 609.224, subdivision 2 (assault in
the fifth degree); 609.2242 and 609.2243 (domestic assault); 609.233 (criminal neglect);
609.377 (malicious punishment of a child); 609.378 (neglect or endangerment of a child);
609.746 (interference with privacy); 609.749 (stalking); or 617.23 (indecent exposure); or

(6) committing an act against or involving a minor that resulted in a misdemeanor-level
violation of section 609.224, subdivision 1 (assault in the fifth degree).

(f) For purposes of this subdivision, the disqualification begins from:

(1) the date of the alleged violation, if the individual was not convicted;

(2) the date of conviction, if the individual was convicted of the violation but not
committed to the custody of the commissioner of corrections; or

(3) the date of release from prison, if the individual was convicted of the violation and
committed to the custody of the commissioner of corrections.

Notwithstanding clause (3), if the individual is subsequently reincarcerated for a violation
of the individual's supervised release, the disqualification begins from the date of release
from the subsequent incarceration.

(g) An individual's aiding and abetting, attempt, or conspiracy to commit any of the
offenses listed in paragraphs (a) and (b), as each of these offenses is defined in Minnesota
Statutes, permanently disqualifies the individual under section 245C.14. An individual is
disqualified under section 245C.14 if fewer than five years have passed since the individual's
aiding and abetting, attempt, or conspiracy to commit any of the offenses listed in paragraphs
(d) and (e).

(h) 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 paragraphs (a) and (b),
permanently disqualifies the individual under section 245C.14. An individual is disqualified
under section 245C.14 if fewer than five years have passed since an offense in any other
state or country, the elements of which are substantially similar to the elements of any
offense listed in paragraphs (d) and (e).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 16.

Minnesota Statutes 2024, section 245C.16, subdivision 1, is amended to read:

Subdivision 1.

Determining immediate risk of harm.

(a) If the commissioner determines
that the individual studied has a disqualifying characteristic, the commissioner shall review
the information immediately available and make a determination as to the subject's immediate
risk of harm to persons served by the program where the individual studied will have direct
contact with, or access to, people receiving services.

(b) The commissioner shall consider all relevant information available, including the
following factors in determining the immediate risk of harm:

(1) the recency of the disqualifying characteristic;

(2) the recency of discharge from probation for the crimes;

(3) the number of disqualifying characteristics;

(4) the intrusiveness or violence of the disqualifying characteristic;

(5) the vulnerability of the victim involved in the disqualifying characteristic;

(6) the similarity of the victim to the persons served by the program where the individual
studied will have direct contact;

(7) whether the individual has a disqualification from a previous background study that
has not been set aside;

(8) if the individual has a disqualification which may not be set aside because it is a
permanent bar under section 245C.24, subdivision 1, or the individual is a child care
background study subject who has a felony-level conviction for a drug-related offense in
the last five years, the commissioner may order the immediate removal of the individual
from any position allowing direct contact with, or access to, persons receiving services from
the program and from working in a children's residential facility or foster residence setting;
and

(9) if the individual has a disqualification which may not be set aside because it is a
permanent bar under section 245C.24, subdivision 2, or the individual is a child care
background study subject who has a felony-level conviction for a drug-related offense during
the last five years, the commissioner may order the immediate removal of the individual
from any position allowing direct contact with or access to persons receiving services from
the center and from working in a licensed child care center or certified license-exempt child
care center.

(c) This section does not apply when the subject of a background study is regulated by
a health-related licensing board as defined in chapter 214, and the subject is determined to
be responsible for substantiated maltreatment under section 626.557 or chapter 260E.

(d) This section does not apply to a background study related to an initial application
for a child foster family setting license.

(e) Except for paragraph (f), this section does not apply to a background study that is
also subject to the requirements under section 256B.0659, subdivisions 11 and 13, for a
personal care assistant or a qualified professional as defined in section 256B.0659,
subdivision 1 new text begin , or to a background study for an individual providing early intensive
developmental and behavioral intervention services under section 245A.142 or 256B.0949 new text end .

(f) If the commissioner has reason to believe, based on arrest information or an active
maltreatment investigation, that an individual poses an imminent risk of harm to persons
receiving services, the commissioner may order that the person be continuously supervised
or immediately removed pending the conclusion of the maltreatment investigation or criminal
proceedings.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 17.

Minnesota Statutes 2024, section 245G.01, is amended by adding a subdivision
to read:

new text begin Subd. 13d. new text end

new text begin Individual counseling. new text end

new text begin "Individual counseling" means professionally led
psychotherapeutic treatment for substance use disorders that is delivered in a one-to-one
setting or in a setting with the client and the client's family and other natural supports.
new text end

Sec. 18.

Minnesota Statutes 2024, section 245G.01, is amended by adding a subdivision
to read:

new text begin Subd. 20f. new text end

new text begin Psychoeducation. new text end

new text begin "Psychoeducation" means the services described in section
245G.07, subdivision 1a, clause (2).
new text end

Sec. 19.

Minnesota Statutes 2024, section 245G.01, is amended by adding a subdivision
to read:

new text begin Subd. 20g. new text end

new text begin Psychosocial treatment services. new text end

new text begin "Psychosocial treatment services" means
the services described in section 245G.07, subdivision 1a.
new text end

Sec. 20.

Minnesota Statutes 2024, section 245G.01, is amended by adding a subdivision
to read:

new text begin Subd. 20h. new text end

new text begin Recovery support services. new text end

new text begin "Recovery support services" means the services
described in section 245G.07, subdivision 2a, paragraph (b), clause (1).
new text end

Sec. 21.

Minnesota Statutes 2024, section 245G.01, is amended by adding a subdivision
to read:

new text begin Subd. 26a. new text end

new text begin Treatment coordination. new text end

new text begin "Treatment coordination" means the services
described in section 245G.07, subdivision 1b.
new text end

Sec. 22.

Minnesota Statutes 2024, section 245G.02, subdivision 2, is amended to read:

Subd. 2.

Exemption from license requirement.

This chapter does not apply to a county
or recovery community organization that is providing a service for which the county or
recovery community organization is an eligible vendor under section 254B.05. This chapter
does not apply to an organization whose primary functions are information, referral,
diagnosis, case management, and assessment for the purposes of client placement, education,
support group services, or self-help programs. This chapter does not apply to the activities
of a licensed professional in private practice. A license holder providing the initial set of
substance use disorder services allowable under section 254A.03, subdivision 3, paragraph
(c), to an individual referred to a licensed nonresidential substance use disorder treatment
program after a positive screen for alcohol or substance misuse is exempt from sections
245G.05; 245G.06, subdivisions 1, 1a, and 4; 245G.07, deleted text begin subdivisions 1 deleted text end deleted text begin , paragraph (a), clauses
(2) to (4), and 2, clauses (1) to (7) deleted text end new text begin subdivision 1a, clause (2) new text end ; and 245G.17.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026.
new text end

Sec. 23.

Minnesota Statutes 2024, section 245G.07, subdivision 1, is amended to read:

Subdivision 1.

Treatment service.

(a) A licensed deleted text begin residential deleted text end treatment program must
offer the treatment services in deleted text begin clauses (1) to (5) deleted text end new text begin subdivisions 1a and 1b and may offer the
treatment services in subdivision 2 new text end to each client, unless clinically inappropriate and the
justifying clinical rationale is documented. deleted text begin A nonresidential deleted text end new text begin The new text end treatment program must
deleted text begin offer all treatment services in clauses (1) to (5) and deleted text end document in the individual treatment
plan the specific services for which a client has an assessed need and the plan to provide
the services deleted text begin : deleted text end new text begin .
new text end

deleted text begin (1) individual and group counseling to help the client identify and address needs related
to substance use and develop strategies to avoid harmful substance use after discharge and
to help the client obtain the services necessary to establish a lifestyle free of the harmful
effects of substance use disorder;
deleted text end

deleted text begin (2) client education strategies to avoid inappropriate substance use and health problems
related to substance use and the necessary lifestyle changes to regain and maintain health.
Client education must include information on tuberculosis education on a form approved
by the commissioner, the human immunodeficiency virus according to section 245A.19,
other sexually transmitted diseases, drug and alcohol use during pregnancy, and hepatitis;
deleted text end

deleted text begin (3) a service to help the client integrate gains made during treatment into daily living
and to reduce the client's reliance on a staff member for support;
deleted text end

deleted text begin (4) a service to address issues related to co-occurring disorders, including client education
on symptoms of mental illness, the possibility of comorbidity, and the need for continued
medication compliance while recovering from substance use disorder. A group must address
co-occurring disorders, as needed. When treatment for mental health problems is indicated,
the treatment must be integrated into the client's individual treatment plan; and
deleted text end

deleted text begin (5) treatment coordination provided one-to-one by an individual who meets the staff
qualifications in section 245G.11, subdivision 7. Treatment coordination services include:
deleted text end

deleted text begin (i) assistance in coordination with significant others to help in the treatment planning
process whenever possible;
deleted text end

deleted text begin (ii) assistance in coordination with and follow up for medical services as identified in
the treatment plan;
deleted text end

deleted text begin (iii) facilitation of referrals to substance use disorder services as indicated by a client's
medical provider, comprehensive assessment, or treatment plan;
deleted text end

deleted text begin (iv) facilitation of referrals to mental health services as identified by a client's
comprehensive assessment or treatment plan;
deleted text end

deleted text begin (v) assistance with referrals to economic assistance, social services, housing resources,
and prenatal care according to the client's needs;
deleted text end

deleted text begin (vi) life skills advocacy and support accessing treatment follow-up, disease management,
and education services, including referral and linkages to long-term services and supports
as needed; and
deleted text end

deleted text begin (vii) documentation of the provision of treatment coordination services in the client's
file.
deleted text end

(b) A treatment service provided to a client must be provided according to the individual
treatment plan and must consider cultural differences and special needs of a client.

new text begin (c) A supportive service alone does not constitute a treatment service. Supportive services
include:
new text end

new text begin (1) milieu management or supervising or monitoring clients without also providing a
treatment service identified in subdivision 1a, 1b, or 2a;
new text end

new text begin (2) transporting clients; and
new text end

new text begin (3) waiting with clients for appointments at social service agencies, court hearings, and
similar activities.
new text end

new text begin (d) A treatment service provided in a group setting must be provided in a cohesive
manner and setting that allows every client receiving the service to interact and receive the
same service at the same time.
new text end

Sec. 24.

Minnesota Statutes 2024, section 245G.07, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Psychosocial treatment service. new text end

new text begin Psychosocial treatment services must be
provided according to the hours identified in section 254B.19 for the ASAM level of care
provided to the client. A license holder must provide the following psychosocial treatment
services as a part of the client's individual treatment:
new text end

new text begin (1) counseling services that provide a client with professional assistance in managing
substance use disorder and co-occurring conditions, either individually or in a group setting.
Counseling must:
new text end

new text begin (i) utilization of evidence-based techniques to help a client modify behavior, overcome
obstacles, and achieve and sustain recovery through techniques such as active listening,
guidance, discussion, feedback, and clarification;
new text end

new text begin (ii) help for the client to identify and address needs related to substance use, develop
strategies to avoid harmful substance use, and establish a lifestyle free of the harmful effects
of substance use disorder; and
new text end

new text begin (iii) work to improve well-being and mental health, resolve or mitigate symptomatic
behaviors, beliefs, compulsions, thoughts, and emotions, and enhance relationships and
social skills, while addressing client-centered psychological and emotional needs; and
new text end

new text begin (2) psychoeducation services to provide a client with information about substance use
and co-occurring conditions, either individually or in a group setting. Psychoeducation
includes structured presentations, interactive discussions, and practical exercises to help
clients understand and manage their conditions effectively. Topics include but are not limited
to:
new text end

new text begin (i) the causes of substance use disorder and co-occurring disorders;
new text end

new text begin (ii) behavioral techniques that help a client change behaviors, thoughts, and feelings;
new text end

new text begin (iii) the importance of maintaining mental health, including understanding symptoms
of mental illness;
new text end

new text begin (iv) medications for addiction and psychiatric disorders and the importance of medication
adherence;
new text end

new text begin (v) the importance of maintaining physical health, health-related risk factors associated
with substance use disorder, and specific health education on tuberculosis, HIV, other
sexually transmitted diseases, drug and alcohol use during pregnancy, and hepatitis; and
new text end

new text begin (vi) harm-reduction strategies.
new text end

Sec. 25.

Minnesota Statutes 2024, section 245G.07, is amended by adding a subdivision
to read:

new text begin Subd. 1b. new text end

new text begin Treatment coordination. new text end

new text begin (a) Treatment coordination must be provided
one-to-one by an individual who meets the staff qualifications in section 245G.11, subdivision
7. Treatment coordination services include:
new text end

new text begin (1) coordinating directly with others involved in the client's treatment and recovery,
including the referral source, family or natural supports, social services agencies, and external
care providers;
new text end

new text begin (2) providing clients with training and facilitating connections to community resources
that support recovery;
new text end

new text begin (3) assisting clients in obtaining necessary resources and services such as financial
assistance, housing, food, clothing, medical care, education, harm reduction services,
vocational support, and recreational services that promote recovery;
new text end

new text begin (4) helping clients connect and engage with self-help support groups and expand social
support networks with family, friends, and organizations; and
new text end

new text begin (5) assisting clients in transitioning between levels of care, including providing direct
connections to ensure continuity of care.
new text end

new text begin (b) Treatment coordination does not include coordinating services or communicating
with staff members within the licensed program.
new text end

new text begin (c) Treatment coordination may be provided in a setting with the individual client and
others involved in the client's treatment and recovery.
new text end

Sec. 26.

Minnesota Statutes 2024, section 245G.07, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Ancillary treatment service. new text end

new text begin (a) A license holder may provide ancillary
services in addition to the hours of psychosocial treatment services identified in section
254B.19 for the ASAM level of care provided to the client.
new text end

new text begin (b) A license holder may provide the following ancillary treatment services as a part of
the client's individual treatment:
new text end

new text begin (1) recovery support services provided individually or in a group setting, that include:
new text end

new text begin (i) supporting clients in restoring daily living skills, such as health and health care
navigation and self-care to enhance personal well-being;
new text end

new text begin (ii) providing resources and assistance to help clients restore life skills, including effective
parenting, financial management, pro-social behavior, education, employment, and nutrition;
new text end

new text begin (iii) assisting clients in restoring daily functioning and routines affected by substance
use and supporting them in developing skills for successful community integration; and
new text end

new text begin (iv) helping clients respond to or avoid triggers that threaten their community stability,
assisting the client in identifying potential crises and developing a plan to address them,
and providing support to restore the client's stability and functioning; and
new text end

new text begin (2) peer recovery support services provided according to sections 254B.05, subdivision
5, and 254B.052.
new text end

Sec. 27.

Minnesota Statutes 2024, section 245G.07, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Counselors deleted text end new text begin Treatment service providers new text end .

new text begin (a) new text end All treatment services deleted text begin , except
peer recovery support services and treatment coordination, deleted text end must be provided by an deleted text begin alcohol
and drug counselor qualified according to section 245G.11, subdivision 5, unless the deleted text end
individual deleted text begin providing the service is deleted text end specifically qualified according to the accepted credential
required to provide the service. deleted text begin The commissioner shall maintain a current list of
professionals qualified to provide treatment services.
deleted text end

new text begin (b) Psychosocial treatment services must be provided by an alcohol and drug counselor
qualified according to section 245G.11, subdivision 5, unless the individual providing the
service is specifically qualified according to the accepted credential required to provide the
service. The commissioner shall maintain a current list of professionals qualified to provide
psychosocial treatment services.
new text end

new text begin (c) Treatment coordination must be provided by a treatment coordinator qualified
according to section 245G.11, subdivision 7.
new text end

new text begin (d) Recovery support services must be provided by a behavioral health practitioner
qualified according to section 245G.11, subdivision 12.
new text end

new text begin (e) Peer recovery support services must be provided by a recovery peer qualified
according to section 245I.04, subdivision 18.
new text end

Sec. 28.

Minnesota Statutes 2024, section 245G.07, subdivision 4, is amended to read:

Subd. 4.

Location of service provision.

(a) The license holder must provide all treatment
services a client receives at one of the license holder's substance use disorder treatment
licensed locations or at a location allowed under paragraphs (b) to (f). If the services are
provided at the locations in paragraphs (b) to (d), the license holder must document in the
client record the location services were provided.

(b) The license holder may provide nonresidential individual treatment services at a
client's home or place of residence.

(c) If the license holder provides treatment services by telehealth, the services must be
provided according to this paragraph:

(1) the license holder must maintain a licensed physical location in Minnesota where
the license holder must offer all treatment services in subdivision deleted text begin 1, paragraph (a), clauses
(1) to (4), deleted text end new text begin 1a new text end physically in-person to each client;

(2) the license holder must meet all requirements for the provision of telehealth in sections
254B.05, subdivision 5, paragraph (f), and 256B.0625, subdivision 3b. The license holder
must document all items in section 256B.0625, subdivision 3b, paragraph (c), for each client
receiving services by telehealth, regardless of payment type or whether the client is a medical
assistance enrollee;

(3) the license holder may provide treatment services by telehealth to clients individually;

(4) the license holder may provide treatment services by telehealth to a group of clients
that are each in a separate physical location;

(5) the license holder must not provide treatment services remotely by telehealth to a
group of clients meeting together in person, unless permitted under clause (7);

(6) clients and staff may join an in-person group by telehealth if a staff member qualified
to provide the treatment service is physically present with the group of clients meeting
together in person; and

(7) the qualified professional providing a residential group treatment service by telehealth
must be physically present on-site at the licensed residential location while the service is
being provided. If weather conditions or short-term illness prohibit a qualified professional
from traveling to the residential program and another qualified professional is not available
to provide the service, a qualified professional may provide a residential group treatment
service by telehealth from a location away from the licensed residential location. In such
circumstances, the license holder must ensure that a qualified professional does not provide
a residential group treatment service by telehealth from a location away from the licensed
residential location for more than one day at a time, must ensure that a staff person who
qualifies as a paraprofessional is physically present with the group of clients, and must
document the reason for providing the remote telehealth service in the records of clients
receiving the service. The license holder must document the dates that residential group
treatment services were provided by telehealth from a location away from the licensed
residential location in a central log and must provide the log to the commissioner upon
request.

(d) The license holder may provide the deleted text begin additional deleted text end new text begin ancillary new text end treatment services under
subdivision deleted text begin 2, clauses (2) to (6) and (8), deleted text end new text begin 2a new text end away from the licensed location at a suitable
location appropriate to the treatment service.

(e) Upon written approval from the commissioner for each satellite location, the license
holder may provide nonresidential treatment services at satellite locations that are in a
school, jail, or nursing home. A satellite location may only provide services to students of
the school, inmates of the jail, or residents of the nursing home. Schools, jails, and nursing
homes are exempt from the licensing requirements in section 245A.04, subdivision 2a, to
document compliance with building codes, fire and safety codes, health rules, and zoning
ordinances.

(f) The commissioner may approve other suitable locations as satellite locations for
nonresidential treatment services. The commissioner may require satellite locations under
this paragraph to meet all applicable licensing requirements. The license holder may not
have more than two satellite locations per license under this paragraph.

(g) The license holder must provide the commissioner access to all files, documentation,
staff persons, and any other information the commissioner requires at the main licensed
location for all clients served at any location under paragraphs (b) to (f).

(h) Notwithstanding sections 245A.65, subdivision 2, and 626.557, subdivision 14, a
program abuse prevention plan is not required for satellite or other locations under paragraphs
(b) to (e). An individual abuse prevention plan is still required for any client that is a
vulnerable adult as defined in section 626.5572, subdivision 21.

Sec. 29.

Minnesota Statutes 2024, section 245G.11, subdivision 6, is amended to read:

Subd. 6.

Paraprofessionals.

A paraprofessional must have knowledge of client rights,
according to section 148F.165, and staff member responsibilities. A paraprofessional may
not new text begin make decisions to new text end admit, transfer, or discharge a client but may new text begin perform tasks related
to intake and orientation. A paraprofessional may new text end be new text begin the new text end responsible deleted text begin for the delivery of
treatment service deleted text end new text begin staff member new text end according to section 245G.10, subdivision 3. new text begin A
paraprofessional is not qualified to provide a treatment service according to section 245G.07,
subdivisions 1a, 1b, and 2a.
new text end

Sec. 30.

Minnesota Statutes 2024, section 245G.11, subdivision 7, is amended to read:

Subd. 7.

Treatment coordination provider qualifications.

(a) Treatment coordination
must be provided by qualified staff. An individual is qualified to provide treatment
coordination if the individual meets the qualifications of an alcohol and drug counselor
under subdivision 5 or if the individual:

(1) is skilled in the process of identifying and assessing a wide range of client needs;

(2) is knowledgeable about local community resources and how to use those resources
for the benefit of the client;

(3) has successfully completed 30 hours of classroom instruction on treatment
coordination for an individual with substance use disorder;

(4) has deleted text begin either: deleted text end new text begin a high school diploma or equivalent; and
new text end

deleted text begin (i) a bachelor's degree in one of the behavioral sciences or related fields; or
deleted text end

deleted text begin (ii) current certification as an alcohol and drug counselor, level I, by the Upper Midwest
Indian Council on Addictive Disorders; and
deleted text end

(5) has at least deleted text begin 2,000 deleted text end new text begin 1,000 new text end hours of supervised experience working with individuals
with substance use disorder.

(b) A treatment coordinator must receive at least one hour of supervision regarding
individual service delivery from an alcohol and drug counselor, or a mental health
professional who has substance use treatment and assessments within the scope of their
practice, on a monthly basis.

Sec. 31.

Minnesota Statutes 2024, section 245G.11, is amended by adding a subdivision
to read:

new text begin Subd. 12. new text end

new text begin Behavioral health practitioners. new text end

new text begin (a) A behavioral health practitioner must
meet the qualifications in section 245I.04, subdivision 4.
new text end

new text begin (b) A behavioral health practitioner working within a substance use disorder treatment
program licensed under this chapter has the following scope of practice:
new text end

new text begin (1) a behavioral health practitioner may provide clients with recovery support services,
as defined in section 245G.07, subdivision 2a, paragraph (b), clause (1); and
new text end

new text begin (2) a behavioral health practitioner must not provide treatment supervision to other staff
persons.
new text end

new text begin (c) A behavioral health practitioner working within a substance use disorder treatment
program licensed under this chapter must receive at least one hour of supervision per month
on individual service delivery from an alcohol and drug counselor or a mental health
professional who has substance use treatment and assessments within the scope of their
practice.
new text end

Sec. 32.

Minnesota Statutes 2024, section 245G.22, subdivision 11, is amended to read:

Subd. 11.

Waiting list.

An opioid treatment program must have a waiting list system.
If the person seeking admission cannot be admitted within 14 days of the date of application,
each person seeking admission must be placed on the waiting list, unless the person seeking
admission is assessed by the program and found ineligible for admission according to this
chapter and Code of Federal Regulations, title 42, part 1, subchapter A, section 8.12 (e),
and title 45, parts 160 to 164. The waiting list must assign a unique client identifier for each
person seeking treatment while awaiting admission. A person seeking admission on a waiting
list who receives no services under section 245G.07, subdivision deleted text begin 1 deleted text end new text begin 1a or 1b new text end , must not be
considered a client as defined in section 245G.01, subdivision 9.

Sec. 33.

Minnesota Statutes 2024, section 245G.22, subdivision 15, is amended to read:

Subd. 15.

Nonmedication treatment services; documentation.

(a) The program must
offer at least 50 consecutive minutes of individual or group therapy treatment services as
defined in section 245G.07, subdivision deleted text begin 1 deleted text end deleted text begin , paragraph (a) deleted text end new text begin 1a new text end , clause (1), per week, for the
first ten weeks following the day of service initiation, and at least 50 consecutive minutes
per month thereafter. As clinically appropriate, the program may offer these services
cumulatively and not consecutively in increments of no less than 15 minutes over the required
time period, and for a total of 60 minutes of treatment services over the time period, and
must document the reason for providing services cumulatively in the client's record. The
program may offer additional levels of service when deemed clinically necessary.

(b) Notwithstanding the requirements of comprehensive assessments in section 245G.05,
the assessment must be completed within 21 days from the day of service initiation.

Sec. 34.

Minnesota Statutes 2024, section 254B.01, subdivision 10, is amended to read:

Subd. 10.

deleted text begin Skilled deleted text end new text begin Psychosocial new text end treatment services.

" deleted text begin Skilled deleted text end new text begin Psychosocial new text end treatment
services" includes the treatment services described in section 245G.07, deleted text begin subdivisions 1,
paragraph (a), clauses (1) to (4), and 2, clauses (1) to (6). Skilled deleted text end new text begin subdivision 1a. Psychosocial new text end
treatment services must be provided by qualified professionals as identified in section
245G.07, subdivision 3 new text begin , paragraph (b) new text end .

Sec. 35.

Minnesota Statutes 2024, section 254B.01, subdivision 11, is amended to read:

Subd. 11.

deleted text begin Sober home deleted text end new text begin Recovery residence new text end .

A deleted text begin sober home deleted text end new text begin recovery residence new text end is a
cooperative living residence, a room and board residence, an apartment, or any other living
accommodation that:

(1) provides temporary housing to persons with substance use disorders;

(2) stipulates that residents must abstain from using alcohol or other illicit drugs or
substances not prescribed by a physician;

(3) charges a fee for living there;

(4) does not provide counseling or treatment services to residents;

(5) promotes sustained recovery from substance use disorders; and

(6) follows the sober living guidelines published by the federal Substance Abuse and
Mental Health Services Administration.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027.
new text end

Sec. 36.

Minnesota Statutes 2024, section 254B.05, subdivision 1, is amended to read:

Subdivision 1.

Licensure or certification required.

(a) Programs licensed by the
commissioner are eligible vendors. Hospitals may apply for and receive licenses to be
eligible vendors, notwithstanding the provisions of section 245A.03. American Indian
programs that provide substance use disorder treatment, extended care, transitional residence,
or outpatient treatment services, and are licensed by tribal government are eligible vendors.

(b) A licensed professional in private practice as defined in section 245G.01, subdivision
17, who meets the requirements of section 245G.11, subdivisions 1 and 4, is an eligible
vendor of a comprehensive assessment provided according to section 254A.19, subdivision
3, and treatment services provided according to sections 245G.06 and 245G.07, deleted text begin subdivision
1 deleted text end deleted text begin , paragraphs (a), clauses (1) to (5), and (b); and subdivision 2, clauses (1) to (6). deleted text end new text begin subdivisions
1, 1a, and 1b.
new text end

(c) A county is an eligible vendor for a comprehensive assessment when provided by
an individual who meets the staffing credentials of section 245G.11, subdivisions 1 and 5,
and completed according to the requirements of section 254A.19, subdivision 3. A county
is an eligible vendor of deleted text begin care deleted text end new text begin treatment new text end coordination services when provided by an individual
who meets the staffing credentials of section 245G.11, subdivisions 1 and 7, and provided
according to the requirements of section 245G.07, subdivision deleted text begin 1 deleted text end deleted text begin , paragraph (a), clause (5) deleted text end new text begin
1b new text end . A county is an eligible vendor of peer recovery services when the services are provided
by an individual who meets the requirements of section 245G.11, subdivision 8 new text begin , and
according to section 254B.052 new text end .

(d) A recovery community organization that meets the requirements of clauses (1) to
(14) and meets certification or accreditation requirements of the Alliance for Recovery
Centered Organizations, the Council on Accreditation of Peer Recovery Support Services,
or a Minnesota statewide recovery organization identified by the commissioner is an eligible
vendor of peer recovery support services. A Minnesota statewide recovery organization
identified by the commissioner must update recovery community organization applicants
for certification or accreditation on the status of the application within 45 days of receipt.
If the approved statewide recovery organization denies an application, it must provide a
written explanation for the denial to the recovery community organization. Eligible vendors
under this paragraph must:

(1) be nonprofit organizations under section 501(c)(3) of the Internal Revenue Code, be
free from conflicting self-interests, and be autonomous in decision-making, program
development, peer recovery support services provided, and advocacy efforts for the purpose
of supporting the recovery community organization's mission;

(2) be led and governed by individuals in the recovery community, with more than 50
percent of the board of directors or advisory board members self-identifying as people in
personal recovery from substance use disorders;

(3) have a mission statement and conduct corresponding activities indicating that the
organization's primary purpose is to support recovery from substance use disorder;

(4) demonstrate ongoing community engagement with the identified primary region and
population served by the organization, including individuals in recovery and their families,
friends, and recovery allies;

(5) be accountable to the recovery community through documented priority-setting and
participatory decision-making processes that promote the engagement of, and consultation
with, people in recovery and their families, friends, and recovery allies;

(6) provide nonclinical peer recovery support services, including but not limited to
recovery support groups, recovery coaching, telephone recovery support, skill-building,
and harm-reduction activities, and provide recovery public education and advocacy;

(7) have written policies that allow for and support opportunities for all paths toward
recovery and refrain from excluding anyone based on their chosen recovery path, which
may include but is not limited to harm reduction paths, faith-based paths, and nonfaith-based
paths;

(8) maintain organizational practices to meet the needs of Black, Indigenous, and people
of color communities, LGBTQ+ communities, and other underrepresented or marginalized
communities. Organizational practices may include board and staff training, service offerings,
advocacy efforts, and culturally informed outreach and services;

(9) use recovery-friendly language in all media and written materials that is supportive
of and promotes recovery across diverse geographical and cultural contexts and reduces
stigma;

(10) establish and maintain a publicly available recovery community organization code
of ethics and grievance policy and procedures;

(11) not classify or treat any recovery peer hired on or after July 1, 2024, as an
independent contractor;

(12) not classify or treat any recovery peer as an independent contractor on or after
January 1, 2025;

(13) provide an orientation for recovery peers that includes an overview of the consumer
advocacy services provided by the Ombudsman for Mental Health and Developmental
Disabilities and other relevant advocacy services; and

(14) provide notice to peer recovery support services participants that includes the
following statement: "If you have a complaint about the provider or the person providing
your peer recovery support services, you may contact the Minnesota Alliance of Recovery
Community Organizations. You may also contact the Office of Ombudsman for Mental
Health and Developmental Disabilities." The statement must also include:

(i) the telephone number, website address, email address, and mailing address of the
Minnesota Alliance of Recovery Community Organizations and the Office of Ombudsman
for Mental Health and Developmental Disabilities;

(ii) the recovery community organization's name, address, email, telephone number, and
name or title of the person at the recovery community organization to whom problems or
complaints may be directed; and

(iii) a statement that the recovery community organization will not retaliate against a
peer recovery support services participant because of a complaint.

(e) A recovery community organization approved by the commissioner before June 30,
2023, must have begun the application process as required by an approved certifying or
accrediting entity and have begun the process to meet the requirements under paragraph (d)
by September 1, 2024, in order to be considered as an eligible vendor of peer recovery
support services.

(f) A recovery community organization that is aggrieved by an accreditation, certification,
or membership determination and believes it meets the requirements under paragraph (d)
may appeal the determination under section 256.045, subdivision 3, paragraph (a), clause
(14), for reconsideration as an eligible vendor. If the human services judge determines that
the recovery community organization meets the requirements under paragraph (d), the
recovery community organization is an eligible vendor of peer recovery support services.

(g) All recovery community organizations must be certified or accredited by an entity
listed in paragraph (d) by June 30, 2025.

(h) Detoxification programs licensed under Minnesota Rules, parts 9530.6510 to
9530.6590, are not eligible vendors. Programs that are not licensed as a residential or
nonresidential substance use disorder treatment or withdrawal management program by the
commissioner or by tribal government or do not meet the requirements of subdivisions 1a
and 1b are not eligible vendors.

(i) Hospitals, federally qualified health centers, and rural health clinics are eligible
vendors of a comprehensive assessment when the comprehensive assessment is completed
according to section 254A.19, subdivision 3, and by an individual who meets the criteria
of an alcohol and drug counselor according to section 245G.11, subdivision 5. The alcohol
and drug counselor must be individually enrolled with the commissioner and reported on
the claim as the individual who provided the service.

(j) Any complaints about a recovery community organization or peer recovery support
services may be made to and reviewed or investigated by the ombudsperson for behavioral
health and developmental disabilities under sections 245.91 and 245.94.

Sec. 37.

Minnesota Statutes 2024, section 254B.05, subdivision 1a, is amended to read:

Subd. 1a.

Room and board provider requirements.

(a) Vendors of room and board
are eligible for behavioral health fund payment if the vendor:

(1) has rules prohibiting residents bringing chemicals into the facility or using chemicals
while residing in the facility and provide consequences for infractions of those rules;

(2) is determined to meet applicable health and safety requirements;

(3) is not a jail or prison;

(4) is not concurrently receiving funds under chapter 256I for the recipient;

(5) admits individuals who are 18 years of age or older;

(6) is registered as a board and lodging or lodging establishment according to section
157.17;

(7) has awake staff on site whenever a client is present;

(8) has staff who are at least 18 years of age and meet the requirements of section
245G.11, subdivision 1, paragraph (b);

(9) has emergency behavioral procedures that meet the requirements of section 245G.16;

(10) meets the requirements of section 245G.08, subdivision 5, if administering
medications to clients;

(11) meets the abuse prevention requirements of section 245A.65, including a policy on
fraternization and the mandatory reporting requirements of section 626.557;

(12) documents coordination with the treatment provider to ensure compliance with
section 254B.03, subdivision 2;

(13) protects client funds and ensures freedom from exploitation by meeting the
provisions of section 245A.04, subdivision 13;

(14) has a grievance procedure that meets the requirements of section 245G.15,
subdivision 2; and

(15) has sleeping and bathroom facilities for men and women separated by a door that
is locked, has an alarm, or is supervised by awake staff.

(b) Programs licensed according to Minnesota Rules, chapter 2960, are exempt from
paragraph (a), clauses (5) to (15).

(c) Programs providing children's mental health crisis admissions and stabilization under
section 245.4882, subdivision 6, are eligible vendors of room and board.

(d) Programs providing children's residential services under section 245.4882, except
services for individuals who have a placement under chapter 260C or 260D, are eligible
vendors of room and board.

(e) Licensed programs providing intensive residential treatment services or residential
crisis stabilization services pursuant to section 256B.0622 or 256B.0624 are eligible vendors
of room and board and are exempt from paragraph (a), clauses (6) to (15).

(f) A vendor that is not licensed as a residential treatment program must have a policy
to address staffing coverage when a client may unexpectedly need to be present at the room
and board site.

new text begin (g) No new vendors for room and board services may be approved after June 30, 2025,
to receive payments from the behavioral health fund, under the provisions of section 254B.04,
subdivision 2a. Room and board vendors that were approved and operating prior to July 1,
2025, may continue to receive payments from the behavioral health fund for services provided
until June 30, 2027. Room and board vendors providing services in accordance with section
254B.04, subdivision 2a, will no longer be eligible to claim reimbursement for room and
board services provided on or after July 1, 2027.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 38.

Minnesota Statutes 2024, section 254B.06, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Prohibition of duplicative claim submission. new text end

new text begin (a) For time-based claims,
submissions must follow the guidelines in the Centers for Medicare and Medicaid Services'
Healthcare Common Procedure Coding System and the American Medical Association's
Current Procedural Terminology to determine the appropriate units of time to report.
new text end

new text begin (b) More than half the duration of a time-based code must be spent performing the service
to be eligible under this section. Any provision of service during the remaining balance of
the unit of time is not eligible for any other claims submission and would be considered a
duplicative claim submission.
new text end

new text begin (c) A provider may only round up to the next whole number of service units on a
submitted claim when more than one and one-half times the defined value of the code has
occurred and no additional time increment code exists.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 39.

Minnesota Statutes 2024, section 254B.181, subdivision 1, is amended to read:

Subdivision 1.

Requirements.

new text begin (a) All recovery residences must be certified by the
commissioner in accordance with the standards of a National Alliance for Recovery
Residences Level 1 or Level 2 recovery residence.
new text end

new text begin (b) new text end All deleted text begin sober homes deleted text end new text begin recovery residences new text end must new text begin :
new text end

new text begin (1) new text end comply with applicable state laws and regulations and local ordinances related to
maximum occupancy, fire safety, and sanitation deleted text begin . In addition, all sober homes must: deleted text end new text begin ;
new text end

new text begin (2) have safety policies and procedures that at a minimum address:
new text end

new text begin (i) safety inspections requiring periodic verification of smoke detectors, carbon monoxide
detectors, and fire extinguishers, and emergency evacuation drills;
new text end

new text begin (ii) exposure to bodily fluids and contagious diseases; and
new text end

new text begin (iii) emergency procedures posted in conspicuous locations in the residence;
new text end

deleted text begin (1) deleted text end new text begin (3) new text end maintain a supply of an opiate antagonist in the home deleted text begin in a conspicuous location
and deleted text end new text begin , new text end post information on proper use new text begin , and train staff on how to administer the opiate
antagonist new text end ;

deleted text begin (2) deleted text end new text begin (4) new text end have written policies regarding access to all prescribed medications new text begin and storage
of medications when requested by a resident new text end ;

deleted text begin (3) deleted text end new text begin (5) new text end have written policies regarding deleted text begin evictions deleted text end new text begin residency termination that include how
length of stay is determined and eviction procedures new text end ;

deleted text begin (4) deleted text end new text begin (6) new text end return all property and medications to a person discharged from the home and
retain the items for a minimum of 60 days if the person did not collect them upon discharge.
The owner must make an effort to contact persons listed as emergency contacts for the
discharged person so that the items are returned;

new text begin (7) ensure separation of funds of persons served by the program from funds of the
program or program staff. The program and staff must not:
new text end

new text begin (i) borrow money from a person served by the program;
new text end

new text begin (ii) purchase personal items from a person served by the program;
new text end

new text begin (iii) sell merchandise or personal services to a person served by the program;
new text end

new text begin (iv) require a person served by the program to purchase items for which the program is
eligible for reimbursement; or
new text end

new text begin (v) use funds of persons served by the program to purchase items for which the program
is already receiving public or private payments;
new text end

deleted text begin (5) deleted text end new text begin (8) new text end document the names and contact information for persons to contact in case of an
emergency or upon discharge and notification of a family member, or other emergency
contact designated by the resident under certain circumstances, including but not limited to
death due to an overdose;

deleted text begin (6) deleted text end new text begin (9) new text end maintain contact information for emergency resources in the community to address
mental health and health emergencies;

deleted text begin (7) deleted text end new text begin (10) new text end have policies on staff qualifications and prohibition against fraternization;

deleted text begin (8) deleted text end new text begin (11) new text end permit residents to use, as directed by a licensed prescriber, legally prescribed
and dispensed or administered pharmacotherapies approved by the United States Food and
Drug Administration for the treatment of opioid use disorder;

deleted text begin (9) deleted text end new text begin (12) new text end permit residents to use, as directed by a licensed prescriber, legally prescribed
and dispensed or administered pharmacotherapies approved by the United States Food and
Drug Administration to treat co-occurring substance use disorders and mental health
conditions;

deleted text begin (10) deleted text end new text begin (13) new text end have a fee schedule and refund policy;

deleted text begin (11) deleted text end new text begin (14) new text end have rules for residents new text begin , including on any prohibited items new text end ;

deleted text begin (12) deleted text end new text begin (15) new text end have policies that promote resident participation in treatment, self-help groups,
or other recovery supports;

deleted text begin (13) deleted text end new text begin (16) new text end have policies requiring abstinence from alcohol and illicit drugs new text begin on the property.
If the program utilizes drug screening or toxicology, the procedures must be included in
policy new text end ; deleted text begin and
deleted text end

deleted text begin (14) deleted text end new text begin (17) new text end distribute new text begin and post in the common areas new text end the deleted text begin sober home deleted text end new text begin resident new text end bill of rights deleted text begin . deleted text end new text begin ,
resident rules, and grievance process;
new text end

new text begin (18) have policies and procedures on searches;
new text end

new text begin (19) have code of ethics policies and procedures that are aligned with the National
Alliance for Recovery Residences code of ethics and document that the policies and
procedures are read and signed by every individual associated with the operation of the
recovery residence, including owners, operators, staff, and volunteers;
new text end

new text begin (20) have a description of how residents are involved with the governance of the
residence, including decision-making procedures, how residents are involved in setting and
implementing rules, and the role of peer leaders, if any; and
new text end

new text begin (21) have procedures to maintain a respectful environment, including appropriate action
to stop intimidation, bullying, sexual harassment, or threatening behavior of residents, staff,
and visitors within the residence. Programs must consider trauma-informed and
resilience-promoting practices when determining action.
new text end

Sec. 40.

Minnesota Statutes 2024, section 254B.181, subdivision 2, is amended to read:

Subd. 2.

Bill of rights.

An individual living in a deleted text begin sober home deleted text end new text begin recovery residence new text end has the
right to:

(1) have access to an environment that supports recovery;

(2) have access to an environment that is safe and free from alcohol and other illicit
drugs or substances;

(3) be free from physical and verbal abuse, neglect, financial exploitation, and all forms
of maltreatment covered under the Vulnerable Adults Act, sections 626.557 to 626.5572;

(4) be treated with dignity and respect and to have personal property treated with respect;

(5) have personal, financial, and medical information kept private and to be advised of
the deleted text begin sober home's deleted text end new text begin recovery residence's new text end policies and procedures regarding disclosure of such
information;

(6) access, while living in the residence, to other community-based support services as
needed;

(7) be referred to appropriate services upon leaving the residence, if necessary;

(8) retain personal property that does not jeopardize safety or health;

(9) assert these rights personally or have them asserted by the individual's representative
or by anyone on behalf of the individual without retaliation;

(10) be provided with the name, address, and telephone number of the ombudsman for
mental health deleted text begin , substance use disorder, deleted text end and developmental disabilities new text begin and the certifying
designated state affiliate new text end and information about the right to file a complaint;

(11) be fully informed of these rights and responsibilities, as well as program policies
and procedures; and

(12) not be required to perform services for the residence that are not included in the
usual expectations for all residents.

Sec. 41.

Minnesota Statutes 2024, section 254B.181, subdivision 3, is amended to read:

Subd. 3.

Complaints deleted text begin ; ombudsman for mental health and developmental
disabilities deleted text end .

Any complaints about a deleted text begin sober home deleted text end new text begin recovery residence new text end may be made to and
reviewed or investigated by the ombudsman for mental health and developmental disabilities,
pursuant to sections 245.91 and 245.94 new text begin , and the certifying designated state affiliate new text end .

Sec. 42.

Minnesota Statutes 2024, section 254B.181, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Resident records. new text end

new text begin (a) A recovery residence must maintain documentation for
each resident of a written agreement prior to beginning residency that includes the following:
new text end

new text begin (1) the resident bill of rights;
new text end

new text begin (2) financial obligations and agreements, refund policy, and payments from third party
payers for any fees paid on the resident's behalf;
new text end

new text begin (3) services provided;
new text end

new text begin (4) recovery goals;
new text end

new text begin (5) relapse policies; and
new text end

new text begin (6) policies on personal property.
new text end

new text begin (b) A recovery residence must maintain documentation for each resident demonstrating:
new text end

new text begin (1) completion of orientation on emergency procedures;
new text end

new text begin (2) completion of orientation on resident rules;
new text end

new text begin (3) that the resident is formally linked with the community, such as the resident
maintaining or searching for a job, being enrolled in an education program, or working with
family services or health and housing programs;
new text end

new text begin (4) that residents and staff engage in community relations and interactions to promote
kinship with other recovery communities and goodwill for recovery services; and
new text end

new text begin (5) any referrals made for additional services.
new text end

new text begin (c) Resident records are private data on individuals as defined in section 13.02,
subdivision 12.
new text end

Sec. 43.

Minnesota Statutes 2024, section 254B.181, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Staff requirements. new text end

new text begin Certified level 2 programs must have staff to model and
teach recovery skills and behaviors and must have the following policies and procedures:
new text end

new text begin (1) written job descriptions for each staff member position, including position
responsibilities and qualifications;
new text end

new text begin (2) performance plans for development of staff in need of improvement;
new text end

new text begin (3) a staffing plan that demonstrates continuous development for all staff;
new text end

new text begin (4) background checks for all staff who will have direct and regular interaction with
residents;
new text end

new text begin (5) expectations for staff to maintain clear personal and professional boundaries;
new text end

new text begin (6) annual trainings on emergency procedures, the resident bill of rights, grievance
policies and procedures, and the code of ethics; and
new text end

new text begin (7) a prohibition on staff providing billable peer recovery support services to residents
of the recovery residence.
new text end

Sec. 44.

new text begin [254B.182] RECOVERY RESIDENCE CERTIFICATION.
new text end

new text begin (a) Effective January 1, 2027, the commissioner of human services shall certify all
recovery residences in Minnesota that are in compliance with section 254B.181. Beginning
January 1, 2027, a recovery residence may not serve clients without a certification from the
commissioner.
new text end

new text begin (b) The commissioner shall:
new text end

new text begin (1) publish a list of certified recovery residences, including any data related to date of
certification, contact information, compliance reports, and the results of any investigations.
The facts of any investigation that substantiates an adverse impact on an individual's health
or safety is public information, except for any identifying information on a resident or
complainant;
new text end

new text begin (2) make requirements for certification of recovery residences publicly accessible;
new text end

new text begin (3) review and recertify recovery residences every three years;
new text end

new text begin (4) compile an annual report on the number of recovery residences, the number of newly
certified recovery residences in the last year, and the number of recovery residences that
lost certification in the last year;
new text end

new text begin (5) review and make certification determinations for all recovery residences beginning
on July 1, 2027; and
new text end

new text begin (6) make a certification determination for a recovery residence within 90 days of
application.
new text end

new text begin (c) The commissioner may decertify a recovery residence with a 30-day notice.
new text end

new text begin (d) A recovery residence that is not certified or is decertified may request reconsideration.
The recovery residence must appeal a denial or decertification in writing and send or deliver
the reconsideration request to the commissioner by certified mail, by personal service, or
through the provider licensing and reporting hub. If the recovery residence mails the
reconsideration request, the reconsideration request must be postmarked and sent to the
commissioner within ten calendar days after the recovery residence receives the order of
certification denial or decertification. If the recovery residence delivers a reconsideration
request by personal service, the commissioner must receive the reconsideration request
within ten calendar days after the recovery residence received the order. If the order is issued
through the provider hub, the request must be received by the commissioner within 20
calendar days from the date the commissioner issued the order through the hub. If a recovery
residence submits a timely reconsideration request of an order of certification denial or
decertification, the recovery residence may continue to operate the program until the
commissioner issues a final order. The commissioner's disposition of a request for
reconsideration is final and not subject to appeal under chapter 14.
new text end

Sec. 45.

Minnesota Statutes 2024, section 254B.19, subdivision 1, is amended to read:

Subdivision 1.

Level of care requirements.

(a) For each client assigned an ASAM level
of care, eligible vendors must implement the standards set by the ASAM for the respective
level of care. Additionally, vendors must meet the following requirements:

(1) For ASAM level 0.5 early intervention targeting individuals who are at risk of
developing a substance-related problem but may not have a diagnosed substance use disorder,
early intervention services may include individual or group counseling, treatment
coordination, peer recovery support, screening brief intervention, and referral to treatment
provided according to section 254A.03, subdivision 3, paragraph (c).

(2) For ASAM level 1.0 outpatient clients, adults must receive up to eight hours per
week of deleted text begin skilled deleted text end new text begin psychosocial new text end treatment services and adolescents must receive up to five
hours per week. Services must be licensed according to section 245G.20 and meet
requirements under section 256B.0759. deleted text begin Peer recovery deleted text end new text begin Ancillary services new text end and treatment
coordination may be provided beyond the hourly deleted text begin skilled deleted text end new text begin psychosocial new text end treatment service
hours allowable per week.

(3) For ASAM level 2.1 intensive outpatient clients, adults must receive nine to 19 hours
per week of deleted text begin skilled deleted text end new text begin psychosocial new text end treatment services and adolescents must receive six or
more hours per week. Vendors must be licensed according to section 245G.20 and must
meet requirements under section 256B.0759. deleted text begin Peer recovery deleted text end new text begin Ancillary new text end services and treatment
coordination may be provided beyond the hourly deleted text begin skilled deleted text end new text begin psychosocial new text end treatment service
hours allowable per week. If clinically indicated on the client's treatment plan, this service
may be provided in conjunction with room and board according to section 254B.05,
subdivision 1a.

(4) For ASAM level 2.5 partial hospitalization clients, adults must receive 20 hours or
more of deleted text begin skilled deleted text end new text begin psychosocial new text end treatment services. Services must be licensed according to
section 245G.20 deleted text begin and must meet requirements under section 256B.0759 deleted text end . Level 2.5 is for
clients who need daily monitoring in a structured setting, as directed by the individual
treatment plan and in accordance with the limitations in section 254B.05, subdivision 5,
paragraph (h). If clinically indicated on the client's treatment plan, this service may be
provided in conjunction with room and board according to section 254B.05, subdivision
1a.

(5) For ASAM level 3.1 clinically managed low-intensity residential clients, programs
must provide at least 5 hours of deleted text begin skilled deleted text end new text begin psychosocial new text end treatment services per week according
to each client's specific treatment schedule, as directed by the individual treatment plan.
Programs must be licensed according to section 245G.20 and must meet requirements under
section 256B.0759.

(6) For ASAM level 3.3 clinically managed population-specific high-intensity residential
clients, programs must be licensed according to section 245G.20 and must meet requirements
under section 256B.0759. Programs must have 24-hour staffing coverage. Programs must
be enrolled as a disability responsive program as described in section 254B.01, subdivision
4b, and must specialize in serving persons with a traumatic brain injury or a cognitive
impairment so significant, and the resulting level of impairment so great, that outpatient or
other levels of residential care would not be feasible or effective. Programs must provide,
at a minimum, daily deleted text begin skilled deleted text end new text begin psychosocial new text end treatment services seven days a week according
to each client's specific treatment schedule, as directed by the individual treatment plan.

(7) For ASAM level 3.5 clinically managed high-intensity residential clients, services
must be licensed according to section 245G.20 and must meet requirements under section
256B.0759. Programs must have 24-hour staffing coverage and provide, at a minimum,
daily deleted text begin skilled deleted text end new text begin psychosocial new text end treatment services seven days a week according to each client's
specific treatment schedule, as directed by the individual treatment plan.

(8) For ASAM level withdrawal management 3.2 clinically managed clients, withdrawal
management must be provided according to chapter 245F.

(9) For ASAM level withdrawal management 3.7 medically monitored clients, withdrawal
management must be provided according to chapter 245F.

(b) Notwithstanding the minimum daily deleted text begin skilled deleted text end new text begin psychosocial new text end treatment service
requirements under paragraph (a), clauses (6) and (7), ASAM level 3.3 and 3.5 vendors
must provide each client at least 30 hours of treatment services per week for the period
between January 1, 2024, through June 30, 2024.

Sec. 46.

Minnesota Statutes 2024, section 256.98, subdivision 1, is amended to read:

Subdivision 1.

Wrongfully obtaining assistance.

(a) A person who commits any of the
following acts or omissions with intent to defeat the purposes of sections 145.891 to 145.897,
the MFIP program formerly codified in sections 256.031 to 256.0361, the AFDC program
formerly codified in sections 256.72 to 256.871, chapter 142G, 256B, 256D, 256I, 256K,
or 256L, child care assistance programs, and emergency assistance programs under section
256D.06, is guilty of theft and shall be sentenced under section 609.52, subdivision 3, clauses
(1) to (5):

(1) obtains or attempts to obtain, or aids or abets any person to obtain by means of a
willfully false statement or representation, by intentional concealment of any material fact,
or by impersonation or other fraudulent device, assistance or the continued receipt of
assistance, to include child care assistance or food benefits produced according to sections
145.891 to 145.897 and MinnesotaCare services according to sections 256.9365, 256.94,
and 256L.01 to 256L.15, to which the person is not entitled or assistance greater than that
to which the person is entitled;

(2) knowingly aids or abets in buying or in any way disposing of the property of a
recipient or applicant of assistance without the consent of the county agency; or

(3) obtains or attempts to obtain, alone or in collusion with others, the receipt of payments
to which the individual is not entitled as a provider of subsidized child care deleted text begin , or deleted text end by deleted text begin furnishing
or concurring in deleted text end new text begin receiving or providing any prohibited payment, as defined in section
609.542, subdivision 2, including a kickback, or by submitting or aiding or abetting the
submission of new text end a willfully false claim for child care assistance.

(b) The continued receipt of assistance to which the person is not entitled or greater than
that to which the person is entitled as a result of any of the acts, failure to act, or concealment
described in this subdivision shall be deemed to be continuing offenses from the date that
the first act or failure to act occurred.

Sec. 47.

Minnesota Statutes 2024, section 256.983, subdivision 4, is amended to read:

Subd. 4.

Funding.

(a) County and Tribal agency reimbursement shall be made through
the settlement provisions applicable to the Supplemental Nutrition Assistance Program
(SNAP), MFIP, child care assistance programs, the medical assistance program, and other
federal and state-funded programs.

(b) The commissioners will maintain program compliance if for any deleted text begin three consecutive
month period deleted text end new text begin quarter new text end , a county or Tribal agency fails to comply with fraud prevention
investigation program guidelines, or fails to meet the cost-effectiveness standards developed
by the commissioners. This result is contingent on the commissioners providing written
notice, including an offer of technical assistance, within 30 days of the end of the deleted text begin third or
subsequent month deleted text end new text begin quarter new text end of noncompliance. The county or Tribal agency shall be required
to submit a corrective action plan to the commissioners within 30 days of receipt of a notice
of noncompliance. Failure to submit a corrective action plan or, continued deviation from
standards of more than ten percent after submission of a corrective action plan, will result
in denial of funding for each subsequent month, or billing the county or Tribal agency for
fraud prevention investigation (FPI) service provided by the commissioners, or reallocation
of program grant funds, or investigative resources, or both, to other counties or Tribal
agencies. The denial of funding shall apply to the general settlement received by the county
or Tribal agency on a quarterly basis and shall not reduce the grant amount applicable to
the FPI project.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 48.

Minnesota Statutes 2024, section 256B.04, subdivision 21, is amended to read:

Subd. 21.

Provider enrollment.

(a) The commissioner shall enroll providers and conduct
screening activities as required by Code of Federal Regulations, title 42, section 455, subpart
E. A provider must enroll each provider-controlled location where direct services are
provided. The commissioner may deny a provider's incomplete application if a provider
fails to respond to the commissioner's request for additional information within 60 days of
the request. The commissioner must conduct a background study under chapter 245C,
including a review of databases in section 245C.08, subdivision 1, paragraph (a), clauses
(1) to (5), for a provider described in this paragraph. The background study requirement
may be satisfied if the commissioner conducted a fingerprint-based background study on
the provider that includes a review of databases in section 245C.08, subdivision 1, paragraph
(a), clauses (1) to (5).

(b) The commissioner shall revalidate deleted text begin each deleted text end :

(1) new text begin each new text end provider under this subdivision at least once every five years; deleted text begin and
deleted text end

(2) new text begin each new text end personal care assistance agency under this subdivision once every three years deleted text begin . deleted text end new text begin ;
and
new text end

new text begin (3) at the commissioner's discretion, any other Medicaid-only provider type the
commissioner deems "high risk" under this subdivision.
new text end

(c) The commissioner shall conduct revalidation as follows:

(1) provide 30-day notice of the revalidation due date including instructions for
revalidation and a list of materials the provider must submit;

(2) if a provider fails to submit all required materials by the due date, notify the provider
of the deficiency within 30 days after the due date and allow the provider an additional 30
days from the notification date to comply; and

(3) if a provider fails to remedy a deficiency within the 30-day time period, give 60-day
notice of termination and immediately suspend the provider's ability to bill. The provider
does not have the right to appeal suspension of ability to bill.

(d) If a provider fails to comply with any individual provider requirement or condition
of participation, the commissioner may suspend the provider's ability to bill until the provider
comes into compliance. The commissioner's decision to suspend the provider is not subject
to an administrative appeal.

(e) Correspondence and notifications, including notifications of termination and other
actions, may be delivered electronically to a provider's MN-ITS mailbox. This paragraph
does not apply to correspondences and notifications related to background studies.

(f) If the commissioner or the Centers for Medicare and Medicaid Services determines
that a provider is designated "high-risk," the commissioner may withhold payment from
providers within that category upon initial enrollment for a 90-day period. The withholding
for each provider must begin on the date of the first submission of a claim.

(g) An enrolled provider that is also licensed by the commissioner under chapter 245A,
is licensed as a home care provider by the Department of Health under chapter 144A, or is
licensed as an assisted living facility under chapter 144G and has a home and
community-based services designation on the home care license under section 144A.484,
must designate an individual as the entity's compliance officer. The compliance officer
must:

(1) develop policies and procedures to assure adherence to medical assistance laws and
regulations and to prevent inappropriate claims submissions;

(2) train the employees of the provider entity, and any agents or subcontractors of the
provider entity including billers, on the policies and procedures under clause (1);

(3) respond to allegations of improper conduct related to the provision or billing of
medical assistance services, and implement action to remediate any resulting problems;

(4) use evaluation techniques to monitor compliance with medical assistance laws and
regulations;

(5) promptly report to the commissioner any identified violations of medical assistance
laws or regulations; and

(6) within 60 days of discovery by the provider of a medical assistance reimbursement
overpayment, report the overpayment to the commissioner and make arrangements with
the commissioner for the commissioner's recovery of the overpayment.

The commissioner may require, as a condition of enrollment in medical assistance, that a
provider within a particular industry sector or category establish a compliance program that
contains the core elements established by the Centers for Medicare and Medicaid Services.

(h) The commissioner may revoke the enrollment of an ordering or rendering provider
for a period of not more than one year, if the provider fails to maintain and, upon request
from the commissioner, provide access to documentation relating to written orders or requests
for payment for durable medical equipment, certifications for home health services, or
referrals for other items or services written or ordered by such provider, when the
commissioner has identified a pattern of a lack of documentation. A pattern means a failure
to maintain documentation or provide access to documentation on more than one occasion.
Nothing in this paragraph limits the authority of the commissioner to sanction a provider
under the provisions of section 256B.064.

(i) The commissioner shall terminate or deny the enrollment of any individual or entity
if the individual or entity has been terminated from participation in Medicare or under the
Medicaid program or Children's Health Insurance Program of any other state. The
commissioner may exempt a rehabilitation agency from termination or denial that would
otherwise be required under this paragraph, if the agency:

(1) is unable to retain Medicare certification and enrollment solely due to a lack of billing
to the Medicare program;

(2) meets all other applicable Medicare certification requirements based on an on-site
review completed by the commissioner of health; and

(3) serves primarily a pediatric population.

(j) As a condition of enrollment in medical assistance, the commissioner shall require
that a provider designated "moderate" or "high-risk" by the Centers for Medicare and
Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid
Services, its agents, or its designated contractors and the state agency, its agents, or its
designated contractors to conduct unannounced on-site inspections of any provider location.
The commissioner shall publish in the Minnesota Health Care Program Provider Manual a
list of provider types designated "limited," "moderate," or "high-risk," based on the criteria
and standards used to designate Medicare providers in Code of Federal Regulations, title
42, section 424.518. The list and criteria are not subject to the requirements of chapter 14.
The commissioner's designations are not subject to administrative appeal.

(k) As a condition of enrollment in medical assistance, the commissioner shall require
that a high-risk provider, or a person with a direct or indirect ownership interest in the
provider of five percent or higher, consent to criminal background checks, including
fingerprinting, when required to do so under state law or by a determination by the
commissioner or the Centers for Medicare and Medicaid Services that a provider is designated
high-risk for fraud, waste, or abuse.

(l)(1) Upon initial enrollment, reenrollment, and notification of revalidation, all durable
medical equipment, prosthetics, orthotics, and supplies (DMEPOS) medical suppliers
meeting the durable medical equipment provider and supplier definition in clause (3),
operating in Minnesota and receiving Medicaid funds must purchase a surety bond that is
annually renewed and designates the Minnesota Department of Human Services as the
obligee, and must be submitted in a form approved by the commissioner. For purposes of
this clause, the following medical suppliers are not required to obtain a surety bond: a
federally qualified health center, a home health agency, the Indian Health Service, a
pharmacy, and a rural health clinic.

(2) At the time of initial enrollment or reenrollment, durable medical equipment providers
and suppliers defined in clause (3) must purchase a surety bond of $50,000. If a revalidating
provider's Medicaid revenue in the previous calendar year is up to and including $300,000,
the provider agency must purchase a surety bond of $50,000. If a revalidating provider's
Medicaid revenue in the previous calendar year is over $300,000, the provider agency must
purchase a surety bond of $100,000. The surety bond must allow for recovery of costs and
fees in pursuing a claim on the bond. new text begin Any action to obtain monetary recovery or sanctions
from a surety bond must occur within six years from the date the debt is affirmed by a final
agency decision. An agency decision is final when the right to appeal the debt has been
exhausted or the time to appeal has expired under section 256B.064.
new text end

(3) "Durable medical equipment provider or supplier" means a medical supplier that can
purchase medical equipment or supplies for sale or rental to the general public and is able
to perform or arrange for necessary repairs to and maintenance of equipment offered for
sale or rental.

(m) The Department of Human Services may require a provider to purchase a surety
bond as a condition of initial enrollment, reenrollment, reinstatement, or continued enrollment
if: (1) the provider fails to demonstrate financial viability, (2) the department determines
there is significant evidence of or potential for fraud and abuse by the provider, or (3) the
provider or category of providers is designated high-risk pursuant to paragraph (f) and as
per Code of Federal Regulations, title 42, section 455.450. The surety bond must be in an
amount of $100,000 or ten percent of the provider's payments from Medicaid during the
immediately preceding 12 months, whichever is greater. The surety bond must name the
Department of Human Services as an obligee and must allow for recovery of costs and fees
in pursuing a claim on the bond. This paragraph does not apply if the provider currently
maintains a surety bond under the requirements in section 256B.0659 or 256B.85.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 49.

Minnesota Statutes 2024, section 256B.0625, subdivision 5m, is amended to read:

Subd. 5m.

Certified community behavioral health clinic services.

(a) Medical
assistance covers services provided by a not-for-profit certified community behavioral health
clinic (CCBHC) that meets the requirements of section 245.735, subdivision 3.

(b) The commissioner shall reimburse CCBHCs on a per-day basis for each day that an
eligible service is delivered using the CCBHC daily bundled rate system for medical
assistance payments as described in paragraph (c). The commissioner shall include a quality
incentive payment in the CCBHC daily bundled rate system as described in paragraph (e).
There is no county share for medical assistance services when reimbursed through the
CCBHC daily bundled rate system.

(c) The commissioner shall ensure that the CCBHC daily bundled rate system for CCBHC
payments under medical assistance meets the following requirements:

(1) the CCBHC daily bundled rate shall be a provider-specific rate calculated for each
CCBHC, based on the daily cost of providing CCBHC services and the total annual allowable
CCBHC costs divided by the total annual number of CCBHC visits. For calculating the
payment rate, total annual visits include visits covered by medical assistance and visits not
covered by medical assistance. Allowable costs include but are not limited to the salaries
and benefits of medical assistance providers; the cost of CCBHC services provided under
section 245.735, subdivision 3, paragraph (a), clauses (6) and (7); and other costs such as
insurance or supplies needed to provide CCBHC services;

(2) payment shall be limited to one payment per day per medical assistance enrollee
when an eligible CCBHC service is provided. A CCBHC visit is eligible for reimbursement
if at least one of the CCBHC services listed under section 245.735, subdivision 3, paragraph
(a), clause (6), is furnished to a medical assistance enrollee by a health care practitioner or
licensed agency employed by or under contract with a CCBHC;

(3) initial CCBHC daily bundled rates for newly certified CCBHCs under section 245.735,
subdivision 3, shall be established by the commissioner using a provider-specific rate based
on the newly certified CCBHC's audited historical cost report data adjusted for the expected
cost of delivering CCBHC services. Estimates are subject to review by the commissioner
and must include the expected cost of providing the full scope of CCBHC services and the
expected number of visits for the rate period;

(4) the commissioner shall rebase CCBHC rates once every two years following the last
rebasing and no less than 12 months following an initial rate or a rate change due to a change
in the scope of services. For CCBHCs certified after September 31, 2020, and before January
1, 2021, the commissioner shall rebase rates according to this clause for services provided
on or after January 1, 2024;

(5) the commissioner shall provide for a 60-day appeals process after notice of the results
of the rebasing;

(6) an entity that receives a CCBHC daily bundled rate that overlaps with another federal
Medicaid rate is not eligible for the CCBHC rate methodology;

(7) payments for CCBHC services to individuals enrolled in managed care shall be
coordinated with the state's phase-out of CCBHC wrap payments. The commissioner shall
complete the phase-out of CCBHC wrap payments within 60 days of the implementation
of the CCBHC daily bundled rate system in the Medicaid Management Information System
(MMIS), for CCBHCs reimbursed under this chapter, with a final settlement of payments
due made payable to CCBHCs no later than 18 months thereafter;

(8) the CCBHC daily bundled rate for each CCBHC shall be updated by trending each
provider-specific rate by the Medicare Economic Index for primary care services. This
update shall occur each year in between rebasing periods determined by the commissioner
in accordance with clause (4). CCBHCs must provide data on costs and visits to the state
annually using the CCBHC cost report established by the commissioner; and

(9) a CCBHC may request a rate adjustment for changes in the CCBHC's scope of
services when such changes are expected to result in an adjustment to the CCBHC payment
rate by 2.5 percent or more. The CCBHC must provide the commissioner with information
regarding the changes in the scope of services, including the estimated cost of providing
the new or modified services and any projected increase or decrease in the number of visits
resulting from the change. Estimated costs are subject to review by the commissioner. Rate
adjustments for changes in scope shall occur no more than once per year in between rebasing
periods per CCBHC and are effective on the date of the annual CCBHC rate update.

(d) Managed care plans and county-based purchasing plans shall reimburse CCBHC
providers at the CCBHC daily bundled rate. The commissioner shall monitor the effect of
this requirement on the rate of access to the services delivered by CCBHC providers. If, for
any contract year, federal approval is not received for this paragraph, the commissioner
must adjust the capitation rates paid to managed care plans and county-based purchasing
plans for that contract year to reflect the removal of this provision. Contracts between
managed care plans and county-based purchasing plans and providers to whom this paragraph
applies must allow recovery of payments from those providers if capitation rates are adjusted
in accordance with this paragraph. Payment recoveries must not exceed the amount equal
to any increase in rates that results from this provision. This paragraph expires if federal
approval is not received for this paragraph at any time.

(e) The commissioner shall implement a quality incentive payment program for CCBHCs
that meets the following requirements:

(1) a CCBHC shall receive a quality incentive payment upon meeting specific numeric
thresholds for performance metrics established by the commissioner, in addition to payments
for which the CCBHC is eligible under the CCBHC daily bundled rate system described in
paragraph (c);

(2) a CCBHC must be certified and enrolled as a CCBHC for the entire measurement
year to be eligible for incentive payments;

(3) each CCBHC shall receive written notice of the criteria that must be met in order to
receive quality incentive payments at least 90 days prior to the measurement year; and

(4) a CCBHC must provide the commissioner with data needed to determine incentive
payment eligibility within six months following the measurement year. The commissioner
shall notify CCBHC providers of their performance on the required measures and the
incentive payment amount within 12 months following the measurement year.

(f) All claims to managed care plans for CCBHC services as provided under this section
shall be submitted directly to, and paid by, the commissioner on the dates specified no later
than January 1 of the following calendar year, if:

(1) one or more managed care plans does not comply with the federal requirement for
payment of clean claims to CCBHCs, as defined in Code of Federal Regulations, title 42,
section 447.45(b), and the managed care plan does not resolve the payment issue within 30
days of noncompliance; and

(2) the total amount of clean claims not paid in accordance with federal requirements
by one or more managed care plans is 50 percent of, or greater than, the total CCBHC claims
eligible for payment by managed care plans.

If the conditions in this paragraph are met between January 1 and June 30 of a calendar
year, claims shall be submitted to and paid by the commissioner beginning on January 1 of
the following year. If the conditions in this paragraph are met between July 1 and December
31 of a calendar year, claims shall be submitted to and paid by the commissioner beginning
on July 1 of the following year.

(g) Peer services provided by a CCBHC certified under section 245.735 are a covered
service under medical assistance when a licensed mental health professional or alcohol and
drug counselor determines that peer services are medically necessary. Eligibility under this
subdivision for peer services provided by a CCBHC supersede eligibility standards under
sections 256B.0615, 256B.0616, and 245G.07, subdivision deleted text begin 2 deleted text end new text begin 2a new text end , new text begin paragraph (b), new text end clause deleted text begin (8) deleted text end new text begin
(2) new text end .

Sec. 50.

Minnesota Statutes 2024, section 256B.0659, subdivision 21, is amended to read:

Subd. 21.

Requirements for provider enrollment of personal care assistance provider
agencies.

(a) All personal care assistance provider agencies must provide, at the time of
enrollment, reenrollment, and revalidation as a personal care assistance provider agency in
a format determined by the commissioner, information and documentation that includes,
but is not limited to, the following:

(1) the personal care assistance provider agency's current contact information including
address, telephone number, and email address;

(2) proof of surety bond coverage for each business location providing services. Upon
new enrollment, or if the provider's Medicaid revenue in the previous calendar year is up
to and including $300,000, the provider agency must purchase a surety bond of $50,000. If
the Medicaid revenue in the previous year is over $300,000, the provider agency must
purchase a surety bond of $100,000. The surety bond must be in a form approved by the
commissioner, must be renewed annually, and must allow for recovery of costs and fees in
pursuing a claim on the bond new text begin . Any action to obtain monetary recovery or sanctions from a
surety bond must occur within six years from the date the debt is affirmed by a final agency
decision. An agency decision is final when the right to appeal the debt has been exhausted
or the time to appeal has expired under section 256B.064 new text end ;

(3) proof of fidelity bond coverage in the amount of $20,000 for each business location
providing service;

(4) proof of workers' compensation insurance coverage identifying the business location
where personal care assistance services are provided;

(5) proof of liability insurance coverage identifying the business location where personal
care assistance services are provided and naming the department as a certificate holder;

(6) a copy of the personal care assistance provider agency's written policies and
procedures including: hiring of employees; training requirements; service delivery; and
employee and consumer safety including process for notification and resolution of consumer
grievances, identification and prevention of communicable diseases, and employee
misconduct;

(7) copies of all other forms the personal care assistance provider agency uses in the
course of daily business including, but not limited to:

(i) a copy of the personal care assistance provider agency's time sheet if the time sheet
varies from the standard time sheet for personal care assistance services approved by the
commissioner, and a letter requesting approval of the personal care assistance provider
agency's nonstandard time sheet;

(ii) the personal care assistance provider agency's template for the personal care assistance
care plan; and

(iii) the personal care assistance provider agency's template for the written agreement
in subdivision 20 for recipients using the personal care assistance choice option, if applicable;

(8) a list of all training and classes that the personal care assistance provider agency
requires of its staff providing personal care assistance services;

(9) documentation that the personal care assistance provider agency and staff have
successfully completed all the training required by this section, including the requirements
under subdivision 11, paragraph (d), if enhanced personal care assistance services are
provided and submitted for an enhanced rate under subdivision 17a;

(10) documentation of the agency's marketing practices;

(11) disclosure of ownership, leasing, or management of all residential properties that
is used or could be used for providing home care services;

(12) documentation that the agency will use the following percentages of revenue
generated from the medical assistance rate paid for personal care assistance services for
employee personal care assistant wages and benefits: 72.5 percent of revenue in the personal
care assistance choice option and 72.5 percent of revenue from other personal care assistance
providers. The revenue generated by the qualified professional and the reasonable costs
associated with the qualified professional shall not be used in making this calculation; and

(13) effective May 15, 2010, documentation that the agency does not burden recipients'
free exercise of their right to choose service providers by requiring personal care assistants
to sign an agreement not to work with any particular personal care assistance recipient or
for another personal care assistance provider agency after leaving the agency and that the
agency is not taking action on any such agreements or requirements regardless of the date
signed.

(b) Personal care assistance provider agencies shall provide the information specified
in paragraph (a) to the commissioner at the time the personal care assistance provider agency
enrolls as a vendor or upon request from the commissioner. The commissioner shall collect
the information specified in paragraph (a) from all personal care assistance providers
beginning July 1, 2009.

(c) All personal care assistance provider agencies shall require all employees in
management and supervisory positions and owners of the agency who are active in the
day-to-day management and operations of the agency to complete mandatory training as
determined by the commissioner before submitting an application for enrollment of the
agency as a provider. All personal care assistance provider agencies shall also require
qualified professionals to complete the training required by subdivision 13 before submitting
an application for enrollment of the agency as a provider. Employees in management and
supervisory positions and owners who are active in the day-to-day operations of an agency
who have completed the required training as an employee with a personal care assistance
provider agency do not need to repeat the required training if they are hired by another
agency, if they have completed the training within the past three years. By September 1,
2010, the required training must be available with meaningful access according to title VI
of the Civil Rights Act and federal regulations adopted under that law or any guidance from
the United States Health and Human Services Department. The required training must be
available online or by electronic remote connection. The required training must provide for
competency testing. Personal care assistance provider agency billing staff shall complete
training about personal care assistance program financial management. This training is
effective July 1, 2009. Any personal care assistance provider agency enrolled before that
date shall, if it has not already, complete the provider training within 18 months of July 1,
2009. Any new owners or employees in management and supervisory positions involved
in the day-to-day operations are required to complete mandatory training as a requisite of
working for the agency. Personal care assistance provider agencies certified for participation
in Medicare as home health agencies are exempt from the training required in this
subdivision. When available, Medicare-certified home health agency owners, supervisors,
or managers must successfully complete the competency test.

(d) All surety bonds, fidelity bonds, workers' compensation insurance, and liability
insurance required by this subdivision must be maintained continuously. After initial
enrollment, a provider must submit proof of bonds and required coverages at any time at
the request of the commissioner. Services provided while there are lapses in coverage are
not eligible for payment. Lapses in coverage may result in sanctions, including termination.
The commissioner shall send instructions and a due date to submit the requested information
to the personal care assistance provider agency.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 51.

Minnesota Statutes 2024, section 256B.0757, subdivision 4c, is amended to read:

Subd. 4c.

Behavioral health home services staff qualifications.

(a) A behavioral health
home services provider must maintain staff with required professional qualifications
appropriate to the setting.

(b) If behavioral health home services are offered in a mental health setting, the
integration specialist must be a licensed nurse, as defined in section 148.171, subdivision
9.

(c) If behavioral health home services are offered in a primary care setting, the integration
specialist must be a mental health professional who is qualified according to section 245I.04,
subdivision 2.

(d) If behavioral health home services are offered in either a primary care setting or
mental health setting, the systems navigator must be a mental health practitioner who is
qualified according to section 245I.04, subdivision 4, or a community health worker as
defined in section 256B.0625, subdivision 49.

(e) If behavioral health home services are offered in either a primary care setting or
mental health setting, the qualified health home specialist must be one of the following:

(1) a mental health certified peer specialist who is qualified according to section 245I.04,
subdivision 10;

(2) a mental health certified family peer specialist who is qualified according to section
245I.04, subdivision 12;

(3) a case management associate as defined in section 245.462, subdivision 4, paragraph
(g), or 245.4871, subdivision 4, paragraph (j);

(4) a mental health rehabilitation worker who is qualified according to section 245I.04,
subdivision 14;

(5) a community paramedic as defined in section 144E.28, subdivision 9;

(6) a peer recovery specialist as defined in section deleted text begin 245G.07, subdivision 1, clause (5) deleted text end new text begin
245G.11, subdivision 8 new text end ; or

(7) a community health worker as defined in section 256B.0625, subdivision 49.

Sec. 52.

Minnesota Statutes 2024, section 256B.0949, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) The terms used in this section have the meanings given in this
subdivision.

(b) "Advanced certification" means a person who has completed advanced certification
in an approved modality under subdivision 13, paragraph (b).

(c) "Agency" means the legal entity that is enrolled with Minnesota health care programs
as a medical assistance provider according to Minnesota Rules, part 9505.0195, to provide
EIDBI services and that has the legal responsibility to ensure that its employees or contractors
carry out the responsibilities defined in this section. Agency includes a licensed individual
professional who practices independently and acts as an agency.

(d) "Autism spectrum disorder or a related condition" or "ASD or a related condition"
means either autism spectrum disorder (ASD) as defined in the current version of the
Diagnostic and Statistical Manual of Mental Disorders (DSM) or a condition that is found
to be closely related to ASD, as identified under the current version of the DSM, and meets
all of the following criteria:

(1) is severe and chronic;

(2) results in impairment of adaptive behavior and function similar to that of a person
with ASD;

(3) requires treatment or services similar to those required for a person with ASD; and

(4) results in substantial functional limitations in three core developmental deficits of
ASD: social or interpersonal interaction; functional communication, including nonverbal
or social communication; and restrictive or repetitive behaviors or hyperreactivity or
hyporeactivity to sensory input; and may include deficits or a high level of support in one
or more of the following domains:

(i) behavioral challenges and self-regulation;

(ii) cognition;

(iii) learning and play;

(iv) self-care; or

(v) safety.

(e) "Person" means a person under 21 years of age.

(f) "Clinical supervision" means the overall responsibility for the control and direction
of EIDBI service delivery, including individual treatment planning, staff supervision,
individual treatment plan progress monitoring, and treatment review for each person. Clinical
supervision is provided by a qualified supervising professional (QSP) who takes full
professional responsibility for the service provided by each supervisee.

(g) "Commissioner" means the commissioner of human services, unless otherwise
specified.

(h) "Comprehensive multidisciplinary evaluation" or "CMDE" means a comprehensive
evaluation of a person to determine medical necessity for EIDBI services based on the
requirements in subdivision 5.

(i) "Department" means the Department of Human Services, unless otherwise specified.

(j) "Early intensive developmental and behavioral intervention benefit" or "EIDBI
benefit" means a variety of individualized, intensive treatment modalities approved and
published by the commissioner that are based in behavioral and developmental science
consistent with best practices on effectiveness.

new text begin (k) "Employee" means any person who is employed by an agency, including temporary
and part-time employees, and who performs work for at least 80 hours in a year for that
agency in Minnesota. Employee does not include an independent contractor.
new text end

deleted text begin (k) deleted text end new text begin (l) new text end "Generalizable goals" means results or gains that are observed during a variety
of activities over time with different people, such as providers, family members, other adults,
and people, and in different environments including, but not limited to, clinics, homes,
schools, and the community.

deleted text begin (l) deleted text end new text begin (m) new text end "Incident" means when any of the following occur:

(1) an illness, accident, or injury that requires first aid treatment;

(2) a bump or blow to the head; or

(3) an unusual or unexpected event that jeopardizes the safety of a person or staff,
including a person leaving the agency unattended.

deleted text begin (m) deleted text end new text begin (n) new text end "Individual treatment plan" or "ITP" means the person-centered, individualized
written plan of care that integrates and coordinates person and family information from the
CMDE for a person who meets medical necessity for the EIDBI benefit. An individual
treatment plan must meet the standards in subdivision 6.

deleted text begin (n) deleted text end new text begin (o) new text end "Legal representative" means the parent of a child who is under 18 years of age,
a court-appointed guardian, or other representative with legal authority to make decisions
about service for a person. For the purpose of this subdivision, "other representative with
legal authority to make decisions" includes a health care agent or an attorney-in-fact
authorized through a health care directive or power of attorney.

deleted text begin (o) deleted text end new text begin (p) new text end "Mental health professional" means a staff person who is qualified according to
section 245I.04, subdivision 2.

deleted text begin (p) deleted text end new text begin (q) new text end "Person-centered" means a service that both responds to the identified needs,
interests, values, preferences, and desired outcomes of the person or the person's legal
representative and respects the person's history, dignity, and cultural background and allows
inclusion and participation in the person's community.

deleted text begin (q) deleted text end new text begin (r) new text end "Qualified EIDBI provider" means a person who is a QSP or a level I, level II,
or level III treatment provider.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 53.

Minnesota Statutes 2024, section 256B.0949, subdivision 15, is amended to read:

Subd. 15.

EIDBI provider qualifications.

(a) A QSP must be deleted text begin employed by deleted text end new text begin an employee
of new text end an agency and be:

(1) a licensed mental health professional who has at least 2,000 hours of supervised
clinical experience or training in examining or treating people with ASD or a related condition
or equivalent documented coursework at the graduate level by an accredited university in
ASD diagnostics, ASD developmental and behavioral treatment strategies, and typical child
development; or

(2) a developmental or behavioral pediatrician who has at least 2,000 hours of supervised
clinical experience or training in examining or treating people with ASD or a related condition
or equivalent documented coursework at the graduate level by an accredited university in
the areas of ASD diagnostics, ASD developmental and behavioral treatment strategies, and
typical child development.

(b) A level I treatment provider must be deleted text begin employed by deleted text end new text begin an employee of new text end an agency and:

(1) have at least 2,000 hours of supervised clinical experience or training in examining
or treating people with ASD or a related condition or equivalent documented coursework
at the graduate level by an accredited university in ASD diagnostics, ASD developmental
and behavioral treatment strategies, and typical child development or an equivalent
combination of documented coursework or hours of experience; and

(2) have or be at least one of the following:

(i) a master's degree in behavioral health or child development or related fields including,
but not limited to, mental health, special education, social work, psychology, speech
pathology, or occupational therapy from an accredited college or university;

(ii) a bachelor's degree in a behavioral health, child development, or related field
including, but not limited to, mental health, special education, social work, psychology,
speech pathology, or occupational therapy, from an accredited college or university, and
advanced certification in a treatment modality recognized by the department;

(iii) a board-certified behavior analyst as defined by the Behavior Analyst Certification
Board or a qualified behavior analyst as defined by the Qualified Applied Behavior Analysis
Credentialing Board; or

(iv) a board-certified assistant behavior analyst with 4,000 hours of supervised clinical
experience that meets all registration, supervision, and continuing education requirements
of the certification.

(c) A level II treatment provider must be deleted text begin employed by deleted text end new text begin an employee of new text end an agency and
must be:

(1) a person who has a bachelor's degree from an accredited college or university in a
behavioral or child development science or related field including, but not limited to, mental
health, special education, social work, psychology, speech pathology, or occupational
therapy; and meets at least one of the following:

(i) has at least 1,000 hours of supervised clinical experience or training in examining or
treating people with ASD or a related condition or equivalent documented coursework at
the graduate level by an accredited university in ASD diagnostics, ASD developmental and
behavioral treatment strategies, and typical child development or a combination of
coursework or hours of experience;

(ii) has certification as a board-certified assistant behavior analyst from the Behavior
Analyst Certification Board or a qualified autism service practitioner from the Qualified
Applied Behavior Analysis Credentialing Board;

(iii) is a registered behavior technician as defined by the Behavior Analyst Certification
Board or an applied behavior analysis technician as defined by the Qualified Applied
Behavior Analysis Credentialing Board; or

(iv) is certified in one of the other treatment modalities recognized by the department;
or

(2) a person who has:

(i) an associate's degree in a behavioral or child development science or related field
including, but not limited to, mental health, special education, social work, psychology,
speech pathology, or occupational therapy from an accredited college or university; and

(ii) at least 2,000 hours of supervised clinical experience in delivering treatment to people
with ASD or a related condition. Hours worked as a mental health behavioral aide or level
III treatment provider may be included in the required hours of experience; or

(3) a person who has at least 4,000 hours of supervised clinical experience in delivering
treatment to people with ASD or a related condition. Hours worked as a mental health
behavioral aide or level III treatment provider may be included in the required hours of
experience; or

(4) a person who is a graduate student in a behavioral science, child development science,
or related field and is receiving clinical supervision by a QSP affiliated with an agency to
meet the clinical training requirements for experience and training with people with ASD
or a related condition; or

(5) a person who is at least 18 years of age and who:

(i) is fluent in a non-English language or is an individual certified by a Tribal Nation;

(ii) completed the level III EIDBI training requirements; and

(iii) receives observation and direction from a QSP or level I treatment provider at least
once a week until the person meets 1,000 hours of supervised clinical experience.

(d) A level III treatment provider must be deleted text begin employed by deleted text end new text begin en employee of new text end an agency, have
completed the level III training requirement, be at least 18 years of age, and have at least
one of the following:

(1) a high school diploma or commissioner of education-selected high school equivalency
certification;

(2) fluency in a non-English language or Tribal Nation certification;

(3) one year of experience as a primary personal care assistant, community health worker,
waiver service provider, or special education assistant to a person with ASD or a related
condition within the previous five years; or

(4) completion of all required EIDBI training within six months of employment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 54.

Minnesota Statutes 2024, section 256B.0949, subdivision 16, is amended to read:

Subd. 16.

Agency duties.

(a) An agency delivering an EIDBI service under this section
must:

(1) enroll as a medical assistance Minnesota health care program provider according to
Minnesota Rules, part 9505.0195, and section 256B.04, subdivision 21, and meet all
applicable provider standards and requirements;

(2) demonstrate compliance with federal and state laws for EIDBI service;

(3) verify and maintain records of a service provided to the person or the person's legal
representative as required under Minnesota Rules, parts 9505.2175 and 9505.2197;

(4) demonstrate that while enrolled or seeking enrollment as a Minnesota health care
program provider the agency did not have a lead agency contract or provider agreement
discontinued because of a conviction of fraud; or did not have an owner, board member, or
manager fail a state or federal criminal background check or appear on the list of excluded
individuals or entities maintained by the federal Department of Human Services Office of
Inspector General;

(5) have established business practices including written policies and procedures, internal
controls, and a system that demonstrates the organization's ability to deliver quality EIDBI
services;

(6) have an office located in Minnesota or a border state;

(7) conduct a criminal background check on an individual who has direct contact with
the person or the person's legal representative;

(8) report maltreatment according to section 626.557 and chapter 260E;

(9) comply with any data requests consistent with the Minnesota Government Data
Practices Act, sections 256B.064 and 256B.27;

(10) provide training for all agency staff on the requirements and responsibilities listed
in the Maltreatment of Minors Act, chapter 260E, and the Vulnerable Adult Protection Act,
section 626.557, including mandated and voluntary reporting, nonretaliation, and the agency's
policy for all staff on how to report suspected abuse and neglect;

(11) have a written policy to resolve issues collaboratively with the person and the
person's legal representative when possible. The policy must include a timeline for when
the person and the person's legal representative will be notified about issues that arise in
the provision of services;

(12) provide the person's legal representative with prompt notification if the person is
injured while being served by the agency. An incident report must be completed by the
agency staff member in charge of the person. A copy of all incident and injury reports must
remain on file at the agency for at least five years from the report of the incident; deleted text begin and
deleted text end

(13) before starting a service, provide the person or the person's legal representative a
description of the treatment modality that the person shall receive, including the staffing
certification levels and training of the staff who shall provide a treatment deleted text begin . deleted text end new text begin ;
new text end

new text begin (14) provide clinical supervision by a qualified supervising professional for a minimum
of one hour of supervision for every ten hours of direct treatment per person that meets
clinical licensure requirements for quality supervision and effective intervention; and
new text end

new text begin (15) provide clinical, in-person supervision sessions by a qualified supervising
professional at least once per month for intervention, observation, and direction.
new text end

(b) When delivering the ITP, and annually thereafter, an agency must provide the person
or the person's legal representative with:

(1) a written copy and a verbal explanation of the person's or person's legal
representative's rights and the agency's responsibilities;

(2) documentation in the person's file the date that the person or the person's legal
representative received a copy and explanation of the person's or person's legal
representative's rights and the agency's responsibilities; and

(3) reasonable accommodations to provide the information in another format or language
as needed to facilitate understanding of the person's or person's legal representative's rights
and the agency's responsibilities.

Sec. 55.

Minnesota Statutes 2024, section 256B.0949, is amended by adding a subdivision
to read:

new text begin Subd. 18. new text end

new text begin Provisional licensure. new text end

new text begin Beginning on January 1, 2026, the commissioner shall
begin issuing provisional licenses to enrolled EIDBI agencies while permanent licensing
standards are developed. EIDBI agencies enrolled by December 31, 2025, have 60 calendar
days to submit an application for provisional licensure on the forms and in the manner
prescribed by the commissioner. The commissioner must act on an application within 90
working days after receiving a complete application.
new text end

Sec. 56.

Minnesota Statutes 2024, section 256B.12, is amended to read:

256B.12 LEGAL REPRESENTATION.

The attorney general or the appropriate county attorney appearing at the direction of the
attorney general shall be the attorney for the state agency, and the county attorney of the
appropriate county shall be the attorney for the deleted text begin local deleted text end agency in all matters pertaining hereto.
To prosecute under this chapter or sections 609.466 deleted text begin and deleted text end new text begin , new text end 609.52, subdivision 2, new text begin and 609.542 new text end
or to recover payments wrongfully made under this chapter, the attorney general or the
appropriate county attorney, acting independently or at the direction of the attorney general
may institute a criminal or civil action.

Sec. 57.

Minnesota Statutes 2024, section 256B.85, subdivision 12, is amended to read:

Subd. 12.

Requirements for enrollment of CFSS agency-providers.

(a) All CFSS
agency-providers must provide, at the time of enrollment, reenrollment, and revalidation
as a CFSS agency-provider in a format determined by the commissioner, information and
documentation that includes but is not limited to the following:

(1) the CFSS agency-provider's current contact information including address, telephone
number, and email address;

(2) proof of surety bond coverage. Upon new enrollment, or if the agency-provider's
Medicaid revenue in the previous calendar year is less than or equal to $300,000, the
agency-provider must purchase a surety bond of $50,000. If the agency-provider's Medicaid
revenue in the previous calendar year is greater than $300,000, the agency-provider must
purchase a surety bond of $100,000. The surety bond must be in a form approved by the
commissioner, must be renewed annually, and must allow for recovery of costs and fees in
pursuing a claim on the bond new text begin . Any action to obtain monetary recovery or sanctions from a
surety bond must occur within six years from the date the debt is affirmed by a final agency
decision. An agency decision is final when the right to appeal the debt has been exhausted
or the time to appeal has expired under section 256B.064 new text end ;

(3) proof of fidelity bond coverage in the amount of $20,000 per provider location;

(4) proof of workers' compensation insurance coverage;

(5) proof of liability insurance;

(6) a copy of the CFSS agency-provider's organizational chart identifying the names
and roles of all owners, managing employees, staff, board of directors, and additional
documentation reporting any affiliations of the directors and owners to other service
providers;

(7) proof that the CFSS agency-provider has written policies and procedures including:
hiring of employees; training requirements; service delivery; and employee and consumer
safety, including the process for notification and resolution of participant grievances, incident
response, identification and prevention of communicable diseases, and employee misconduct;

(8) proof that the CFSS agency-provider has all of the following forms and documents:

(i) a copy of the CFSS agency-provider's time sheet; and

(ii) a copy of the participant's individual CFSS service delivery plan;

(9) a list of all training and classes that the CFSS agency-provider requires of its staff
providing CFSS services;

(10) documentation that the CFSS agency-provider and staff have successfully completed
all the training required by this section;

(11) documentation of the agency-provider's marketing practices;

(12) disclosure of ownership, leasing, or management of all residential properties that
are used or could be used for providing home care services;

(13) documentation that the agency-provider will use at least the following percentages
of revenue generated from the medical assistance rate paid for CFSS services for CFSS
support worker wages and benefits: 72.5 percent of revenue from CFSS providers, except
100 percent of the revenue generated by a medical assistance rate increase due to a collective
bargaining agreement under section 179A.54 must be used for support worker wages and
benefits. The revenue generated by the worker training and development services and the
reasonable costs associated with the worker training and development services shall not be
used in making this calculation; and

(14) documentation that the agency-provider does not burden participants' free exercise
of their right to choose service providers by requiring CFSS support workers to sign an
agreement not to work with any particular CFSS participant or for another CFSS
agency-provider after leaving the agency and that the agency is not taking action on any
such agreements or requirements regardless of the date signed.

(b) CFSS agency-providers shall provide to the commissioner the information specified
in paragraph (a).

(c) All CFSS agency-providers shall require all employees in management and
supervisory positions and owners of the agency who are active in the day-to-day management
and operations of the agency to complete mandatory training as determined by the
commissioner. Employees in management and supervisory positions and owners who are
active in the day-to-day operations of an agency who have completed the required training
as an employee with a CFSS agency-provider do not need to repeat the required training if
they are hired by another agency and they have completed the training within the past three
years. CFSS agency-provider billing staff shall complete training about CFSS program
financial management. Any new owners or employees in management and supervisory
positions involved in the day-to-day operations are required to complete mandatory training
as a requisite of working for the agency.

(d) Agency-providers shall submit all required documentation in this section within 30
days of notification from the commissioner. If an agency-provider fails to submit all the
required documentation, the commissioner may take action under subdivision 23a.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 58.

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

Subd. 2a.

License required; staffing qualifications.

(a) Except as provided in paragraph
deleted text begin (b) deleted text end new text begin (c) new text end , 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; or (iv) licensed under section 245D.02,
subdivision 4a, as a community residential setting by the commissioner of human services;
or

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

new text begin (b) Effective January 1, 2027, the commissioner may enter into housing support
agreements with a board and lodging establishment under section 256I.04, subdivision 2a,
paragraph (a), clause (1), that is also certified by the commissioner as a recovery residence,
subject to the requirements of section 256I.04, subdivisions 2a to 2f. When doing so, the
department of human services serves as the lead agency for the agreement.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end 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.

deleted text begin (c) deleted text end new text begin (d) new text end 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.

deleted text begin (d) deleted text end new text begin (e) new text end 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. 59.

Minnesota Statutes 2024, section 260E.14, subdivision 1, is amended to read:

Subdivision 1.

Facilities and schools.

(a) The local welfare agency is the agency
responsible for investigating allegations of maltreatment in child foster care, family child
care, legally nonlicensed child care, and reports involving children served by an unlicensed
personal care provider organization under section 256B.0659. Copies of findings related to
personal care provider organizations under section 256B.0659 must be forwarded to the
Department of Human Services provider enrollment.

(b) The Department of Children, Youth, and Families is the agency responsible for
screening and investigating allegations of maltreatment in juvenile correctional facilities
listed under section 241.021 located in the local welfare agency's county and in facilities
licensed or certified under chapters 245A and 245D.

(c) The Department of Health is the agency responsible for screening and investigating
allegations of maltreatment in facilities licensed under sections 144.50 to 144.58 and 144A.43
to 144A.482 or chapter 144H.

(d) The Department of Education is the agency responsible for screening and investigating
allegations of maltreatment in a school as defined in section 120A.05, subdivisions 9, 11,
and 13, and chapter 124E. The Department of Education's responsibility to screen and
investigate includes allegations of maltreatment involving students 18 through 21 years of
age, including students receiving special education services, up to and including graduation
and the issuance of a secondary or high school diploma.

new text begin (e) The Department of Human Services is the agency responsible for screening and
investigating allegations of maltreatment of minors in an EIDBI agency operating under a
provisional license under section 245A.142.
new text end

deleted text begin (e) deleted text end new text begin (f) new text end A health or corrections agency receiving a report may request the local welfare
agency to provide assistance pursuant to this section and sections 260E.20 and 260E.22.

deleted text begin (f) deleted text end new text begin (g) new text end The Department of Children, Youth, and Families is the agency responsible for
screening and investigating allegations of maltreatment in facilities or programs not listed
in paragraph (a) that are licensed or certified under chapters 142B and 142C.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 60.

Minnesota Statutes 2024, section 325F.725, is amended to read:

325F.725 deleted text begin SOBER HOME deleted text end new text begin RECOVERY RESIDENCE new text end TITLE PROTECTION.

No person or entity may use the phrase deleted text begin "sober home," deleted text end new text begin "recovery residence," new text end whether
alone or in combination with other words and whether orally or in writing, to advertise,
market, or otherwise describe, offer, or promote itself, or any housing, service, service
package, or program that it provides within this state, unless the person or entity meets the
definition of a deleted text begin sober home deleted text end new text begin recovery residence new text end in section 254B.01, subdivision 11, and meets
the requirements of section 254B.181.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 61.

new text begin [609.542] HUMAN SERVICES PROGRAMS CRIMES.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "federal health care program"
has the meaning given in United States Code, title 42, section 1320a-7b(f).
new text end

new text begin Subd. 2. new text end

new text begin Prohibited payments made relating to human services programs. new text end

new text begin A person
is guilty of a crime and may be sentenced as provided in subdivision 5 if the person
intentionally offers or pays any remuneration, including any kickback, bribe, or rebate,
directly or indirectly, overtly or covertly, in cash or in kind, to another person:
new text end

new text begin (1) to induce that person to apply for, receive, or induce another person to apply for or
receive an item or service for which payment may be made in whole or in part under a
federal health care program, state behavioral health program under section 254B.04, or
family program under chapter 142E; or
new text end

new text begin (2) in return for purchasing, leasing, ordering, or arranging for or inducing the purchasing,
leasing, or ordering of any good, facility, service, or item for which payment may be made
in whole or in part, or which is administered in whole or in part under a federal health care
program, state behavioral health program under section 254B.04, or family program under
chapter 142E.
new text end

new text begin Subd. 3. new text end

new text begin Receipt of prohibited payments relating to human services programs. new text end

new text begin A
person is guilty of a crime and may be sentenced as provided in subdivision 5 if the person
intentionally solicits or receives any remuneration, including any kickback, bribe, or rebate,
directly or indirectly, overtly or covertly, in cash or in kind:
new text end

new text begin (1) in return for applying for or receiving a human services benefit, service, or grant for
which payment may be made in whole or in part under a federal health care program, state
behavioral health program under section 254B.04, or family program under chapter 142E;
or
new text end

new text begin (2) in return for purchasing, leasing, ordering, or arranging for or inducing the purchasing,
leasing, or ordering of any good, facility, service, or item for which payment may be made
in whole or in part under a federal health care program, state behavioral health program
under section 254B.04, or family program under chapter 142E.
new text end

new text begin Subd. 4. new text end

new text begin Exemptions. new text end

new text begin (a) This section does not apply to remuneration exempted under
the Anti-Kickback Statute, United States Code, title 42, section 1320a-7b(b)(3), or payment
made under a federal health care program which is exempt from liability by United States
Code, title 42, section 1001.952.
new text end

new text begin (b) This section does not apply to:
new text end

new text begin (1) any amount paid by an employer to a bona fide employee for providing covered
items or services under chapter 142E while acting in the course and scope of employment;
or
new text end

new text begin (2) child care provider discounts, scholarships, or other financial assistance to families
allowed under section 142E.17, subdivision 7.
new text end

new text begin Subd. 5. new text end

new text begin Sentence. new text end

new text begin (a) A person convicted under subdivision 2 or 3 may be sentenced
pursuant to section 609.52, subdivision 3.
new text end

new text begin (b) For purposes of sentencing a violation of subdivision 2, "value" means the fair market
value of the good, facility, service, or item that was obtained as a direct or indirect result
of the prohibited payment.
new text end

new text begin (c) For purposes of sentencing a violation of subdivision 3, "value" means the amount
of the prohibited payment solicited or received.
new text end

new text begin (d) As a matter of law, a claim for any good, facility, service, or item rendered or claimed
to have been rendered in violation of this section is noncompensable and unenforceable at
the time the claim is made.
new text end

new text begin Subd. 6. new text end

new text begin Aggregation. new text end

new text begin In a prosecution under this section, the value of the money,
property, or benefit received or solicited by the defendant within a six-month period may
be aggregated and the defendant charged accordingly in applying the provisions of
subdivision 5.
new text end

new text begin Subd. 7. new text end

new text begin False claims. new text end

new text begin In addition to the penalties provided for in this section, a claim,
as defined in section 15C.01, subdivision 2, that includes items or services resulting from
a violation of this section constitutes a false or fraudulent claim for purposes of section
15C.02.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025, and applies to crimes
committed on or after that date.
new text end

Sec. 62.

Minnesota Statutes 2024, section 626.5572, subdivision 13, is amended to read:

Subd. 13.

Lead investigative agency.

"Lead investigative agency" is the primary
administrative agency responsible for investigating reports made under section 626.557.

(a) The Department of Health is the lead investigative agency for facilities or services
licensed or required to be licensed as hospitals, home care providers, nursing homes, boarding
care homes, hospice providers, residential facilities that are also federally certified as
intermediate care facilities that serve people with developmental disabilities, or any other
facility or service not listed in this subdivision that is licensed or required to be licensed by
the Department of Health for the care of vulnerable adults. "Home care provider" has the
meaning provided in section 144A.43, subdivision 4, and applies when care or services are
delivered in the vulnerable adult's home.

(b) The Department of Human Services is the lead investigative agency for facilities or
services licensed or required to be licensed as adult day care, adult foster care, community
residential settings, programs for people with disabilities, family adult day services, mental
health programs, mental health clinics, substance use disorder programs, the Minnesota Sex
Offender Program, or any other facility or service not listed in this subdivision that is licensed
or required to be licensed by the Department of Human Services new text begin , including EIDBI agencies
operating under a provisional license under section 245A.142 new text end .

(c) The county social service agency or its designee is the lead investigative agency for
all other reports, including, but not limited to, reports involving vulnerable adults receiving
services from a personal care provider organization under section 256B.0659.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 63. new text begin TRANSITION TO NONPROVISIONAL EIDBI LICENSE; FUTURE
LICENSURE STANDARDS.
new text end

new text begin (a) The commissioner must develop a process and transition plan for comprehensive
EIDBI agency licensure by January 1, 2026.
new text end

new text begin (b) By December 1, 2026, in consultation with stakeholders the commissioner shall draft
standards for nonprovisional EIDBI agency licensure and submit proposed legislation to
the chairs and ranking minority members of the legislative committees with jurisdiction
over human services licensing.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025.
new text end

Sec. 64. new text begin WORKING GROUP FOR RECOVERY RESIDENCES.
new text end

new text begin (a) The commissioner of human services must convene a working group on recovery
residences.
new text end

new text begin (b) The working group must:
new text end

new text begin (1) produce a report that examines how other states fund recovery residences, identifying
best practices and models that could be applicable to Minnesota;
new text end

new text begin (2) engage with communities to ensure meaningful collaboration with key external
partners on the ideas being developed that will inform the final plan and recommendations;
and
new text end

new text begin (3) develop an implementable plan addressing housing needs for individuals in outpatient
substance use disorder treatment that includes:
new text end

new text begin (i) clear strategies for aligning housing models with individual treatment needs;
new text end

new text begin (ii) an assessment of funding streams, including potential federal funding sources;
new text end

new text begin (iii) a timeline for implementation, with key milestones and action steps;
new text end

new text begin (iv) recommendations for future resource allocation to ensure long-term housing stability
for individuals in recovery; and
new text end

new text begin (v) specific recommendations for policy or legislative changes that may be required to
support sustainable recovery housing solutions.
new text end

new text begin (c) The working group shall include but is not limited to:
new text end

new text begin (1) at least two designees from the Department of Human Services, at least one
representing behavioral health policy and at least one representing homelessness, housing
and support services policy;
new text end

new text begin (2) the commissioner of health or a designee;
new text end

new text begin (3) two people who have experience living in a recovery residence;
new text end

new text begin (4) representatives from at least three substance use disorder lodging facilities currently
operating in Minnesota;
new text end

new text begin (5) three representatives from county social services agencies, at least one from within
and one from outside the seven-county metropolitan area;
new text end

new text begin (6) a representative from a Tribal social services agency; and
new text end

new text begin (7) representatives from national or state organizations specializing in recovery residences
and substance use disorder treatment.
new text end

new text begin (d) The working group shall meet at least monthly and as necessary to fulfill its
responsibilities. The commissioner of human services shall provide administrative support
and meeting space for the working group. The working group may conduct meetings
remotely.
new text end

new text begin (e) The commissioner of human services shall make appointments to the working group
by October 1, 2025, and convene the first meeting of the working group by January 15,
2026.
new text end

new text begin (f) The working group shall submit a final report with recommendations to the chairs
and ranking minority members of the legislative committees with jurisdiction over health
and human services policy and finance on or before January 1, 2027.
new text end

Sec. 65. new text begin REVISOR INSTRUCTION.
new text end

new text begin The revisor of statutes shall change the terms "mental health practitioner" and "mental
health practitioners" to "behavioral health practitioner" or "behavioral health practitioners"
wherever they appear in Minnesota Statutes, chapter 245I.
new text end

Sec. 66. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2024, sections 245G.01, subdivision 20d; 245G.07, subdivision
2; and 254B.01, subdivision 5, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2024, section 254B.04, subdivision 2a, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective July 1, 2025, and paragraph (b) is
effective July 1, 2027.
new text end

ARTICLE 3

DEPARTMENT OF CHILDREN, YOUTH, AND FAMILIES

Section 1.

Minnesota Statutes 2024, section 142E.16, subdivision 7, is amended to read:

Subd. 7.

Record-keeping requirement.

(a) As a condition of payment, all providers
receiving child care assistance payments must:

(1) keep accurate and legible daily attendance records at the site where services are
delivered for children receiving child care assistance; deleted text begin and
deleted text end

(2) make those records available immediately to the county or the commissioner upon
request. Any records not provided to a county or the commissioner at the date and time of
the request are deemed inadmissible if offered as evidence by the provider in any proceeding
to contest an overpayment or disqualification of the provider deleted text begin . deleted text end new text begin ; and
new text end

new text begin (3) submit data on child enrollment and attendance in the form and manner specified by
the commissioner.
new text end

(b) As a condition of payment, attendance records must be completed daily and include
the date, the first and last name of each child in attendance, and the times when each child
is dropped off and picked up. To the extent possible, the times that the child was dropped
off to and picked up from the child care provider must be entered by the person dropping
off or picking up the child. The daily attendance records must be retained at the site where
services are delivered for six years after the date of service.

(c) When the county or the commissioner knows or has reason to believe that a current
or former provider has not complied with the record-keeping requirement in this subdivision:

(1) the commissioner may:

(i) deny or revoke a provider's authorization to receive child care assistance payments
under section 142E.17, subdivision 9, paragraph (d);

(ii) pursue an administrative disqualification under sections 142E.51, subdivision 5, and
256.98; or

(iii) take an action against the provider under deleted text begin sections 142E.50 to 142E.58 deleted text end new text begin section
142E.51 new text end ; or

(2) a county or the commissioner may establish an attendance record overpayment under
paragraph (d).

(d) To calculate an attendance record overpayment under this subdivision, the
commissioner or county agency shall subtract the maximum daily rate from the total amount
paid to a provider for each day that a child's attendance record is missing, unavailable,
incomplete, inaccurate, or otherwise inadequate.

(e) The commissioner shall develop criteria for a county to determine an attendance
record overpayment under this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 22, 2026.
new text end

ARTICLE 4

DEPARTMENT OF REVENUE

Section 1.

Minnesota Statutes 2024, section 270C.445, subdivision 3, is amended to read:

Subd. 3.

Standards of conduct.

No tax preparer shall:

(1) without good cause fail to promptly, diligently, and without unreasonable delay
complete a client's return;

(2) obtain the signature of a client to a return or authorizing document that contains
blank spaces to be filled in after it has been signed;

(3) fail to sign a client's return when compensation for services rendered has been made;

(4) fail to provide on a client's return the preparer tax identification number when required
under section 6109(a)(4) of the Internal Revenue Code or section 289A.60, subdivision 28;

(5) fail or refuse to give a client a copy of any document requiring the client's signature
within a reasonable time after the client signs the document;

(6) fail to retain for at least four years a copy of a client's returns;

(7) fail to maintain a confidential relationship with clients or former clients;

(8) fail to take commercially reasonable measures to safeguard a client's nonpublic
personal information;

(9) make, authorize, publish, disseminate, circulate, or cause to make, either directly or
indirectly, any false, deceptive, or misleading statement or representation relating to or in
connection with the offering or provision of tax preparation services;

(10) require a client to enter into a loan arrangement in order to complete a client's return;

(11) claim credits or deductions on a client's return for which the tax preparer knows or
reasonably should know the client does not qualify;

(12) report a household income on a client's claim filed under chapter 290A that the tax
preparer knows or reasonably should know is not accurate;

(13) engage in any conduct that is subject to a penalty under section 289A.60, subdivision
13, 20, 20a, 26, or 28;

(14) whether or not acting as a taxpayer representative, fail to conform to the standards
of conduct required by Minnesota Rules, part 8052.0300, subpart 4;

(15) whether or not acting as a taxpayer representative, engage in any conduct that is
incompetent conduct under Minnesota Rules, part 8052.0300, subpart 5;

(16) whether or not acting as a taxpayer representative, engage in any conduct that is
disreputable conduct under Minnesota Rules, part 8052.0300, subpart 6;

(17) charge, offer to accept, or accept a fee based upon a percentage of an anticipated
refund for tax preparation services;

(18) under any circumstances, withhold or fail to return to a client a document provided
by the client for use in preparing the client's return;

(19) take control or ownership of a client's refund by any means, including:

(i) directly or indirectly endorsing or otherwise negotiating a check or other refund
instrument, including an electronic version of a check;

(ii) directing an electronic or direct deposit of the refund into an account unless the
client's name is on the account; and

(iii) establishing or using an account in the preparer's name to receive a client's refund
through a direct deposit or any other instrument unless the client's name is also on the
account deleted text begin , except that a taxpayer may assign the portion of a refund representing the Minnesota
education credit available under section 290.0674 to a bank account without the client's
name, as provided under section 290.0679 deleted text end ;

(20) fail to act in the best interests of the client;

(21) fail to safeguard and account for any money handled for the client;

(22) fail to disclose all material facts of which the preparer has knowledge which might
reasonably affect the client's rights and interests;

(23) violate any provision of section 332.37;

(24) include any of the following in any document provided or signed in connection
with the provision of tax preparation services:

(i) a hold harmless clause;

(ii) a confession of judgment or a power of attorney to confess judgment against the
client or appear as the client in any judicial proceeding;

(iii) a waiver of the right to a jury trial, if applicable, in any action brought by or against
a debtor;

(iv) an assignment of or an order for payment of wages or other compensation for
services;

(v) a provision in which the client agrees not to assert any claim or defense otherwise
available;

(vi) a waiver of any provision of this section or a release of any obligation required to
be performed on the part of the tax preparer; or

(vii) a waiver of the right to injunctive, declaratory, or other equitable relief or relief on
a class basis; or

(25) if making, providing, or facilitating a refund anticipation loan, fail to provide all
disclosures required by the federal Truth in Lending Act, United States Code, title 15, in a
form that may be retained by the client.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2025.
new text end

ARTICLE 5

DEPARTMENT OF EDUCATION

Section 1.

new text begin [13.3211] DEPARTMENT OF EDUCATION OFFICE OF THE
INSPECTOR GENERAL; INVESTIGATIVE DATA.
new text end

new text begin (a) Data on persons that are collected, maintained, used, or disseminated by the
Department of Education in an investigation conducted under section 127A.21 are
confidential data on individuals pursuant to section 13.02, subdivision 3, or protected
nonpublic data on an individual pursuant to section 13.02, subdivision 13, and shall not be
disclosed except:
new text end

new text begin (1) pursuant to section 13.05;
new text end

new text begin (2) pursuant to statute or valid court order;
new text end

new text begin (3) to a party named in a civil or criminal proceeding for preparation of a defense;
new text end

new text begin (4) to an investigator acting on behalf of a county, state, or federal government, including
a law enforcement officer or attorney in the investigation or prosecution of a criminal, civil,
or administrative proceeding, unless the inspector general determines that disclosure may
compromise an investigation; or
new text end

new text begin (5) to provide notices required or permitted by statute.
new text end

new text begin (b) The data referred to in this section shall be classified as public data upon submission
to a court in a civil or criminal proceeding, or when the investigation is no longer being
pursued actively, except that the data shall be disclosed as required to comply with section
6.67 or 609.456, unless chapter 13 provides otherwise.
new text end

new text begin (c) Notwithstanding paragraph (a), the existence of an investigation conducted by the
Office of the Inspector General or withholding of payment by the commissioner may be
disclosed if the commissioner, after consulting with the inspector general, determines that
it will not compromise the investigation.
new text end

Sec. 2.

Minnesota Statutes 2024, section 13.82, subdivision 1, is amended to read:

Subdivision 1.

Application.

This section shall apply to agencies which carry on a law
enforcement function, including but not limited to municipal police departments, county
sheriff departments, fire departments, the Bureau of Criminal Apprehension, the Minnesota
State Patrol, the Board of Peace Officer Standards and Training, the Department of
Commerce, new text begin the Office of the Inspector General within the Department of Education, new text end and
county human service agency client and provider fraud investigation, prevention, and control
units operated or supervised by the Department of Human Services.

Sec. 3.

Minnesota Statutes 2024, section 124D.111, subdivision 2a, is amended to read:

Subd. 2a.

Federal child and adult care food program and federal summer food
service program; criteria and notice new text begin ; board of directors; salaries new text end .

(a) The commissioner
must post on the department's website eligibility criteria and application information for
nonprofit organizations interested in applying to the commissioner for approval as a multisite
sponsoring organization under the federal child and adult care food program and federal
summer food service program. The posted criteria and information must inform interested
nonprofit organizations about:

(1) the criteria the commissioner uses to approve or disapprove an application, including
how an applicant demonstrates financial viability for the Minnesota program, among other
criteria;

(2) the commissioner's process and time line for notifying an applicant when its
application is approved or disapproved and, if the application is disapproved, the explanation
the commissioner provides to the applicant; and

(3) any appeal or other recourse available to a disapproved applicant.

(b) The commissioner must evaluate financial eligibility as part of the application process.
An organization applying to be a prospective nonprofit multisite sponsoring organization
for the federal child and adult care food program or the federal summer food service program
must provide documentation of financial viability as an organization. Documentation must
include:

(1) evidence that the organization has operated for at least one year and has filed at least
one tax return;

(2) the most recent tax return submitted by the organization and corresponding forms
and financial statements;

(3) a profit and loss statement and balance sheet or similar financial information; and

(4) evidence that at least ten percent of the organization's operating revenue comes from
sources other than the United States Department of Agriculture child nutrition program and
that the organization has additional funds or a performance bond available to cover at least
one month of reimbursement claims.

new text begin (c) When a nonprofit organization applies for sponsorship as a multisite sponsoring
organization under the federal child and adult care food program and federal summer food
service program, applications are evaluated on the following criteria in addition to federal
requirements:
new text end

new text begin (1) any sponsor that receives reimbursement over the federal single audit threshold, as
defined under Code of Federal Regulations, title 2, part 200, must ensure a minimum of
one full-time equivalent financial director or similar role for the organization. This position
must be solely dedicated to the responsibilities of a financial director or similar role and be
separate from any other position within the organization;
new text end

new text begin (2) volunteers must not be allowed to make organization-level decisions, monitor sites,
or provide financial oversight. Board members, whether paid or unpaid, are not considered
volunteers; and
new text end

new text begin (3) unless granted special approval by the commissioner, sponsoring organizations are
limited to an annual maximum increase of 25 percent for the number of sponsored sites and
total reimbursement.
new text end

new text begin (d) A nonprofit organization's board of directors:
new text end

new text begin (1) must have bylaws that outline the procedures for changing the governance structure,
consistent with chapter 317A;
new text end

new text begin (2) must have meetings that comply with chapter 13D governing open meetings; and
new text end

new text begin (3) that have nonprofit multisite sponsoring organizations must publish and maintain:
new text end

new text begin (i) the meeting minutes of the board of directors and of members and committees having
board-delegated authority within 30 days following the earlier of the date of board approval
of the minutes or at the next regularly scheduled meeting and must maintain meeting minutes
for at least 365 days from the date of publication; and
new text end

new text begin (ii) directory information for the board of directors and for the members of committees
having board-delegated authority.
new text end

new text begin (e) The commissioner must post annually on the department's website the salary ranges
for the positions of executive director, financial director, monitoring staff, administrative
staff, and officer-level positions for multisite sponsoring organizations under the federal
child and adult care food program and federal summer food service program. Salaries
charged to the nonprofit food service fund must fall within these ranges.
new text end

Sec. 4.

Minnesota Statutes 2024, section 124E.02, is amended to read:

124E.02 DEFINITIONS.

(a) For purposes of this chapter, the terms defined in this section have the meanings
given them.

(b) "Affidavit" means a written statement the authorizer submits to the commissioner
for approval to establish a charter school under section 124E.06, subdivision 4, attesting to
its review and approval process before chartering a school.

(c) "Affiliate" means a person that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with another person.

(d) "Charter management organization" or "CMO" means a nonprofit entity or
organization that operates or manages a charter school or a network of charter schools or
can control all or substantially all of a school's education program or a school's administrative,
financial, business, or operational functions.

new text begin (e) "Competitive procurement process" means a process for procurement by sealed bids
or by proposals under section 124E.26, subdivision 4a.
new text end

deleted text begin (e) deleted text end new text begin (f) new text end "Control" means the ability to affect the management, operations, or policy actions
or decisions of a person, whether by owning voting securities, by contract, or otherwise.

deleted text begin (f) deleted text end new text begin (g) new text end "Educational management organization" or "EMO" means a for-profit entity or
organization that operates or manages a charter school or a network of charter schools or
can control all or substantially all of a school's education program, or a school's
administrative, financial, business, or operational functions.

deleted text begin (g) deleted text end new text begin (h) new text end "Immediate family member" means any relationship by blood, marriage, adoption,
or partnership of spouses, parents, grandparents, siblings, children, first cousins, aunts,
uncles, grandchildren, nieces, and nephews.

deleted text begin (h) deleted text end new text begin (i) new text end "Market need and demand study" means a study that includes the following for
the proposed locations of the school or additional site new text begin that supports all of the proposed
grades, sites, and programs new text end :

(1) current and projected demographic information;

(2) student enrollment patterns;

(3) information on existing schools and types of educational programs currently available;

(4) characteristics of proposed students and families;

(5) availability of properly zoned and classified facilities; and

(6) quantification of existing demand for the school or site.

deleted text begin (i) deleted text end new text begin (j) new text end "Person" means an individual or entity of any kind.

deleted text begin (j) deleted text end new text begin (k) new text end "Related party" means an affiliate or immediate family member of the other
interested party, an affiliate of an immediate family member who is the other interested
party, or an immediate family member of an affiliate who is the other interested party.

deleted text begin (k) deleted text end new text begin (l) new text end For purposes of this chapter, the terms defined in section 120A.05 have the same
meanings.

Sec. 5.

Minnesota Statutes 2024, section 124E.16, subdivision 1, is amended to read:

Subdivision 1.

Audit report.

(a) A charter school is subject to the same financial audits,
audit procedures, and audit requirements as a district, except as required under this
subdivision. Audits must be conducted in compliance with generally accepted governmental
auditing standards, the federal Single Audit Act, if applicable, and section 6.65 governing
auditing procedures. The audit must comply with the requirements of sections 123B.75 to
123B.83 governing school district finance, except when the commissioner and authorizer
approve a deviation made necessary because of school program finances. The commissioner,
state auditor, legislative auditor, or authorizer may conduct financial, program, or compliance
audits. A charter school in statutory operating debt under sections 123B.81 to 123B.83 must
submit a plan under section 123B.81, subdivision 4.

(b) The charter school must submit an audit report new text begin , including all supplemental information
included with the audit, new text end to the commissioner and its authorizer annually by December 31.

(c) The charter school, with the assistance of the auditor conducting the audit, must
include with the report, as supplemental information: (1) a copy of deleted text begin a new deleted text end new text begin any new text end management
agreement deleted text begin or an amendment to a current agreement deleted text end with a CMO or EMO deleted text begin signed during the
audit year deleted text end ; and (2) a copy of a service agreement or contract with a company or individual
totaling over five percent of the audited expenditures for the most recent audit year. The
agreements must detail the terms of the agreement, including the services provided and the
annual costs for those services.

(d) A charter school independent audit report shall include audited financial data of an
affiliated building corporation under section 124E.13, subdivision 3, or other component
unit.

(e) If the audit report finds that a material weakness exists in the financial reporting
systems of a charter school, the charter school must submit a written report to the
commissioner explaining how the charter school will resolve that material weakness. An
auditor, as a condition of providing financial services to a charter school, must agree to
make available information about a charter school's financial audit to the commissioner and
authorizer upon request.

Sec. 6.

Minnesota Statutes 2024, section 124E.16, is amended by adding a subdivision to
read:

new text begin Subd. 4. new text end

new text begin Authorizer performance evaluation report. new text end

new text begin (a) A charter school must publish
on its website the formal written performance evaluation from its authorizer and disseminate
the evaluation to enrolled families in languages parents understand.
new text end

new text begin (b) Evaluations must be published on the charter school's website within 15 business
days of receipt of the evaluation by the charter school.
new text end

Sec. 7.

Minnesota Statutes 2024, section 124E.26, subdivision 4, is amended to read:

Subd. 4.

Required policy components.

A charter school procurement policy must at a
minimum include:

(1) conflict of interest provisions consistent with section 124E.14;

(2) thresholds for purchases by employees without board approval;

(3) thresholds for purchases that require competitive deleted text begin bidding deleted text end new text begin procurement new text end processes new text begin as
defined in section 124E.02, paragraph (e) new text end , except that a competitive deleted text begin bidding deleted text end new text begin procurement
new text end process must occur for any procurement estimated to exceed $25,000; and

(4) a prohibition on breaking up a procurement into smaller components to avoid the
thresholds established in clauses (2) and (3).

new text begin Notwithstanding clause (3), for a procurement estimated to exceed $25,000 but not $175,000,
the purchase may be made either by a competitive procurement process, or by direct
negotiation by obtaining two or more bids or proposals for the purchase or sale when possible
and without advertising for bids or proposals or otherwise complying with the requirements
of a competitive procurement process. If a procurement is estimated to exceed $175,000, a
competitive procurement process must occur.
new text end

Sec. 8.

Minnesota Statutes 2024, section 124E.26, is amended by adding a subdivision to
read:

new text begin Subd. 4a. new text end

new text begin Competitive procurement. new text end

new text begin (a) "Procurement by sealed bids" means a process
in which bids are publicly solicited and a firm fixed price contract by lump sum or unit price
is awarded to the responsible bidder whose bid, conforming with all material terms and
conditions of the invitation for bids, is the lowest in price. If sealed bids are used, the
following requirements apply:
new text end

new text begin (1) bids must be solicited from an adequate number of qualified sources, providing
bidders sufficient response time prior to the date set for opening bids;
new text end

new text begin (2) the invitation for bids, which includes any specifications and pertinent attachments,
must define the items or services in order for the bidder to properly respond;
new text end

new text begin (3) all bids will be opened at the time and place prescribed in the invitation for bids, and
the bids must be opened publicly;
new text end

new text begin (4) a firm fixed price contract award will be made in writing to the lowest responsive
and responsible bidder. Where specified in bidding documents, factors such as discounts,
transportation cost, and life cycle costs must be considered in determining which bid is
lowest. Payment discounts will only be used to determine the low bid when prior experience
indicates that the discounts are usually taken advantage of;
new text end

new text begin (5) any or all bids may be rejected if there is a sound documented reason; and
new text end

new text begin (6) in order for a sealed bid to be feasible, the following conditions must be present:
new text end

new text begin (i) a complete, adequate, and realistic specification or purchase description is available;
new text end

new text begin (ii) two or more responsible bidders are willing and able to compete effectively for the
business; and
new text end

new text begin (iii) the procurement lends itself to a firm fixed price contract and the selection of the
successful bidder can be made principally on the price.
new text end

new text begin (b) "Procurement by proposals" means a process in which either a fixed price or
cost-reimbursement type contract is awarded. Proposals are generally used when conditions
are not appropriate for the use of sealed bids. They are awarded in accordance with the
following requirements:
new text end

new text begin (1) requests for proposals must be publicized and identify all evaluation factors and their
relative importance. Proposals must be solicited from an adequate number of qualified
offerors. Any response to publicized requests for proposals must be considered to the
maximum extent practical;
new text end

new text begin (2) the charter school must have a written method for conducting technical evaluations
of the proposals received and for making selections; and
new text end

new text begin (3) contracts must be awarded to the responsible offeror whose proposal is most
advantageous to the charter school, with price and other factors considered.
new text end

Sec. 9.

Minnesota Statutes 2024, section 124E.26, subdivision 5, is amended to read:

Subd. 5.

Reduction in aid.

If a charter school makes a purchase new text begin with a policy not
consistent with this section or new text end without a procurement policy adopted by the school's board new text begin , new text end
or makes a purchase not in conformity with the school's procurement policy, the
commissioner may reduce that charter school's state aid in an amount equal to the purchase.

Sec. 10.

Minnesota Statutes 2024, section 127A.21, subdivision 1, is amended to read:

Subdivision 1.

Establishment of Office of the Inspector General; powers; duties.

The
commissioner must establish within the department an Office of the Inspector General. The
inspector general shall report directly to the commissioner. The Office of the Inspector
General is charged with protecting the integrity of the department and the state by detecting
and preventing fraud, new text begin theft, new text end waste, and abuse in department programs. The Office of the
Inspector General must conduct independent and objective investigations to promote the
integrity of the department's programs and operations. When fraud new text begin , theft, new text end or other misuse
of public funds is detected, the Office of the Inspector General must report it to the
appropriate law enforcement entity and collaborate and cooperate with law enforcement to
assist in the investigation and any subsequent civil and criminal prosecution.

Sec. 11.

Minnesota Statutes 2024, section 127A.21, subdivision 1a, is amended to read:

Subd. 1a.

Definitions.

(a) For purposes of this section, the following terms have the
meanings given.

(b) "Abuse" means actions that may, directly or indirectly, result in unnecessary costs
to department programs. Abuse may involve paying for items or services when there is no
legal entitlement to that payment deleted text begin . deleted text end new text begin , new text end new text begin or behavior that is deficient or improper when compared
with behavior that a prudent person would consider a reasonable and necessary business
practice given the facts and circumstances. Abuse includes but is not limited to:
new text end

new text begin (1) obtaining or attempting to obtain department program funds when required
information is missing or incorrect;
new text end

new text begin (2) failing to correct errors in the filing or maintenance of records in a timely manner
after a request by the department;
new text end

new text begin (3) obtaining or attempting to obtain department program funds that overstate the level
or amount that is allowed to be reimbursed under law, program rules, or contract;
new text end

new text begin (4) obtaining or attempting to obtain grant funds from the department program by means
that are not allowed or do not comply with grant requirements;
new text end

new text begin (5) failing to disclose or make available requested records to the department pursuant
to law, program rules, or contract;
new text end

new text begin (6) refusing to provide access to records as required by subdivision 4;
new text end

new text begin (7) failing to keep or maintain records as required by law, rule, or contract; and
new text end

new text begin (8) a program participant seeking department program funds after being excluded.
new text end

(c) "Department program" means a program funded by the Department of Education
that involves the transfer or disbursement of public funds or other resources to a program
participant. "Department program" includes state and federal aids or grants received by a
school district or charter school or other program participant.

new text begin (d) "Excluded" means removed by any means from a program administered by a
Minnesota state agency or federal agency.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end "Fraud" means an intentional or deliberate act to deprive another of property or
money or to acquire property or money by deception or other unfair means. Fraud includes
intentionally submitting false information to the department for the purpose of new text begin either new text end
obtaining a greater compensation or benefit than that to which the deleted text begin person deleted text end new text begin program participant new text end
is legally entitled new text begin or hiding the misuse of funds new text end . deleted text begin Fraud also includes failure to correct errors
in the maintenance of records in a timely manner after a request by the department. deleted text end new text begin Fraud
also includes acts that constitute a crime against any program, or attempts or conspiracies
to commit those crimes, including but not limited to the following:
new text end

new text begin (1) theft in violation of section 609.52;
new text end

new text begin (2) perjury in violation of section 609.48; and
new text end

new text begin (3) aggravated forgery and forgery in violation of sections 609.625 and 609.63.
new text end

deleted text begin (e) deleted text end new text begin (f) new text end "Investigation" means an audit, investigation, proceeding, or inquiry by the Office
of the Inspector General related to a program participant in a department program.

deleted text begin (f) deleted text end new text begin (g) new text end "Program participant" means any entity or person, including associated new text begin entities
or new text end persons, that receives, disburses, or has custody of funds or other resources transferred
or disbursed under a department program. new text begin Associated persons or entities include but are not
limited to vendors or other entities or persons that contract with recipients of department
program funds.
new text end

new text begin (h) "Theft" means the act defined in section 609.52, subdivision 2.
new text end

deleted text begin (g) deleted text end new text begin (i) new text end "Waste" means practices that, directly or indirectly, result in unnecessary costs
to department programs, such as misusing resources. new text begin Waste includes an attempt or act using
or expending resources carelessly, extravagantly, or to no purpose.
new text end

deleted text begin (h) deleted text end new text begin (j) new text end For purposes of this section, neither "fraud," new text begin "theft," new text end "waste," nor "abuse" includes
decisions on instruction, curriculum, personnel, or other discretionary policy decisions made
by a school district, charter school, cooperative unit as defined by section 123A.24,
subdivision 2, or any library, library system, or library district defined in section 134.001.

Sec. 12.

Minnesota Statutes 2024, section 127A.21, subdivision 4, is amended to read:

Subd. 4.

Access to records.

(a) For purposes of an investigation, and regardless of the
data's classification under chapter 13, the Office of the Inspector General shall have access
to all relevant books, accounts, documents, data, and property related to department programs
that are maintained by a program participant, charter school, or government entity as defined
by section 13.02.

(b) Notwithstanding paragraph (a), the Office of the Inspector General must issue a
subpoena under subdivision 3 in order to access routing and account numbers to which
Department of Education funds have been disbursed.

(c) Records requested by the Office of the Inspector General under this subdivision shall
be provided in a format, place, and time frame reasonably requested by the Office of the
Inspector General.

(d) The department may enter into specific agreements with other state agencies related
to records requests by the Office of the Inspector General.

new text begin (e) In an investigation, program participants must give the Office of the Inspector General
immediate access without prior notice to any locations of potential record storage and the
records themselves, whether physical or electronic, during regular business hours, and to
any records related to a department program. Denying the Office of the Inspector General
access to requested records is cause for immediate suspension of payment.
new text end

new text begin (f) The Office of the Inspector General, at its own expense, may photocopy or otherwise
duplicate any record related to a department program. Photocopying or electronic duplication
shall be done on the program participant's premises when immediate access is requested,
unless removal is specifically permitted by the program participant. If requested, a program
participant must help the Office of the Inspector General duplicate any department program
record or other records related to a department program's operation, including hard copies
or electronically stored data, on the day when access is requested.
new text end

Sec. 13.

Minnesota Statutes 2024, section 127A.21, subdivision 5, is amended to read:

Subd. 5.

Sanctions; appeal.

(a) This subdivision does not authorize any sanction that
reduces, pauses, or otherwise interrupts state or federal aid to a school district, charter school,
cooperative unit as defined by section 123A.24, subdivision 2, or any library, library system,
or library district defined in section 134.001.

(b) The inspector general may recommend that the commissioner impose appropriate
deleted text begin temporary deleted text end sanctions deleted text begin , including withholding of payments under the department program, deleted text end on
a program participant deleted text begin pending an investigation by the Office of the Inspector General deleted text end if:

deleted text begin (1) during the course of an investigation, the Office of the Inspector General finds credible
indicia of fraud, waste, or abuse by the program participant;
deleted text end

deleted text begin (2) deleted text end new text begin (1) new text end there has been a criminal, civil, or administrative adjudication of fraud, new text begin theft, new text end
waste, or abuse against the program participant in Minnesota or in another state or
jurisdiction; new text begin or
new text end

deleted text begin (3) the program participant was receiving funds under any contract or registered in any
program administered by another Minnesota state agency, a government agency in another
state, or a federal agency, and was excluded from that contract or program for reasons
credibly indicating fraud, waste, or abuse by the program participant; or
deleted text end

deleted text begin (4) deleted text end new text begin (2) new text end the program participant has a pattern of noncompliance with an investigation.

(c) If an investigation finds, by a preponderance of the evidence, fraud, new text begin theft, new text end waste, or
abuse by a program participant, the inspector general may, after reviewing all facts and
evidence and when acting judiciously on a case-by-case basis, recommend that the
commissioner impose appropriate sanctions on the program participant.

(d) Unless prohibited by law, the commissioner has the authority to implement
recommendations by the inspector general, including imposing appropriate sanctions deleted text begin ,
temporarily or otherwise, deleted text end on a program participant. Sanctions may include ending program
participation, stopping disbursement of funds or resources, monetary recovery, and
termination of department contracts with the participant for any current or future department
program or contract. A sanction may be imposed for up to the longest period permitted by
state or federal law. Sanctions authorized under this subdivision are in addition to other
remedies and penalties available under law.

(e) If the commissioner imposes sanctions on a program participant under this subdivision,
the commissioner must notify the participant in writing within seven business days of
imposing the sanction, unless requested in writing by a law enforcement agency to
temporarily delay issuing the notice to prevent disruption of an ongoing law enforcement
agency investigation. A notice of sanction must state:

(1) the sanction being imposed;

(2) the general allegations that form the basis for the sanction;

(3) the duration of the sanction;

(4) the department programs to which the sanction applies; and

(5) how the program participant may appeal the sanction pursuant to paragraph (e).

(f) A program participant sanctioned under this subdivision may, within 30 days after
the date the notice of sanction was mailed to the participant, appeal the determination by
requesting in writing that the commissioner initiate a contested case proceeding under
chapter 14. The scope of any contested case hearing is limited to the sanction imposed under
this subdivision. An appeal request must specify with particularity each disputed item, the
reason for the dispute, and must include the name and contact information of the person or
entity that may be contacted regarding the appeal.

(g) The commissioner shall lift sanctions imposed under this subdivision if the Office
of the Inspector General determines there is insufficient evidence of fraud, new text begin theft, new text end waste, or
abuse by the program participant. The commissioner must notify the participant in writing
within seven business days of lifting the sanction.

Sec. 14.

Minnesota Statutes 2024, section 127A.21, subdivision 6, is amended to read:

Subd. 6.

Data practices.

(a) It is not a violation of rights conferred by chapter 13 or any
other statute related to the confidentiality of government data for a government entity as
defined in section 13.02 to provide data or information under this section.

(b) The inspector general is subject to the Government Data Practices Act, chapter 13,
and shall protect from unlawful disclosure data classified as not public. Data collected,
created, received, or maintained by the inspector general relating to an deleted text begin audit, deleted text end investigation,
proceeding, or inquiry are subject to deleted text begin section 13.39 deleted text end new text begin sections 13.3211 and 13.82 new text end .

Sec. 15.

Minnesota Statutes 2024, section 127A.21, subdivision 7, is amended to read:

Subd. 7.

deleted text begin Retaliation, deleted text end Interference prohibited.

deleted text begin (a) An employee or other individual
who discloses information to the Office of the Inspector General about fraud, waste, or
abuse in department programs is protected under section 181.932, governing disclosure of
information by employees.
deleted text end

deleted text begin (b) deleted text end No state employee may interfere with or obstruct an investigation authorized by this
section.

Sec. 16.

Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Immunity and confidentiality. new text end

new text begin (a) A person who makes a good faith report
is immune from any civil liability that might otherwise arise from reporting or participating
in the investigation. Nothing in this subdivision affects an individual's or entity's
responsibility for any monetary recovery under existing law or contractual obligation when
receiving public funds.
new text end

new text begin (b) For purposes of this subdivision, "person" means a natural person.
new text end

new text begin (c) After an investigation is complete, the reporter's name and any identifying information
must be kept confidential. The subject of the report may compel disclosure of the reporter's
name only with the consent of the reporter or upon a written finding by a district court that
the report was false and there is evidence that the report was made in bad faith. This
subdivision does not alter disclosure responsibilities or obligations under the Rules of
Criminal Procedure, except that when the identity of the reporter is relevant to a criminal
prosecution the district court shall conduct an in-camera review before determining whether
to order disclosure of the reporter's identity.
new text end

Sec. 17.

Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Limits on receiving public funds; prohibition. new text end

new text begin (a) This subdivision does not
authorize any action that reduces, pauses, or otherwise interrupts state or federal aid to a
school district, charter school, cooperative unit as defined in section 123A.24, subdivision
2, or any library, library system, or library district defined in section 134.001.
new text end

new text begin (b) For purposes of this subdivision, "program participant" includes individuals or persons
who have an ownership interest in, control of, or the ability to control a program participant
in a department program.
new text end

new text begin (c) If a program participant is excluded from a department program, the inspector general
shall notify the commissioner, who shall:
new text end

new text begin (1) prohibit the excluded program participant from enrolling in, receiving grant money
from, or registering in any other program administered by the commissioner; and
new text end

new text begin (2) disenroll or disqualify the excluded program participant from any other program
administered by the commissioner.
new text end

new text begin (d) If a program participant enrolled, licensed, or receiving funds under any contract or
program administered by a Minnesota state agency or federal agency is excluded from that
program, the inspector general shall notify the commissioner, who may:
new text end

new text begin (1) prohibit the excluded program participant from enrolling in, becoming licensed,
receiving grant money from, or registering in any other program administered by the
commissioner; and
new text end

new text begin (2) disenroll or disqualify the excluded program participant from any other program
administered by the commissioner.
new text end

new text begin (e) The duration of a prohibition, disenrollment, revocation, suspension, or
disqualification under paragraph (c) must last for the longest applicable sanction or
disqualifying period in effect for the program participant permitted by state or federal law.
The duration of a prohibition, disenrollment, revocation, suspension, or disqualification
under paragraph (d) may last up until the longest applicable sanction or disqualifying period
in effect for the program participant as permitted by state or federal law.
new text end

Sec. 18.

Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Notice. new text end

new text begin Within five days of taking an action against a program participant
under subdivision 9, paragraph (c) or (d), the commissioner must send notice of the action
to the program participant. The notice must state:
new text end

new text begin (1) the basis for the action;
new text end

new text begin (2) the effective date of the action;
new text end

new text begin (3) the right to appeal the action; and
new text end

new text begin (4) the requirements and procedures for reinstatement.
new text end

Sec. 19.

Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Appeal. new text end

new text begin (a) Upon receipt of a notice under subdivision 10, a program
participant may request a contested case hearing, as defined in section 14.02, subdivision
3, by filing with the commissioner a written request of appeal. The appeal request must be
received by the commissioner no later than 30 days after the date the notification was mailed
to the program participant.
new text end

new text begin (b) The appeal request must specify: (1) each disputed item and the reason for the dispute;
(2) the authority in statute or rule upon which the program participant relies for each disputed
item; (3) the name and address of the person or entity with whom contacts may be made
regarding the appeal; and (4) other information required by the commissioner.
new text end

new text begin (c) Unless timely and proper appeal is received by the commissioner, the action of the
commissioner shall be considered final and binding on the effective date of the action as
stated in the notice under subdivision 10, clause (2).
new text end

Sec. 20.

Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision
to read:

new text begin Subd. 12. new text end

new text begin Withholding of payments. new text end

new text begin (a) This subdivision does not authorize withholding
of payments that reduces, pauses, or otherwise interrupts state or federal aid to a school
district, charter school, cooperative unit as defined in section 123A.24, subdivision 2, or
any library, library system, or library district defined in section 134.001.
new text end

new text begin (b) Except as otherwise provided by state or federal law, the inspector general shall
notify and recommend to the commissioner to withhold payments to a program participant
in any program administered by the commissioner, to the extent permitted under federal
law, if the commissioner determines there is a credible allegation of fraud or theft for which
an investigation is pending for a program administered by the department, a Minnesota state
agency, or a federal agency.
new text end

new text begin (c) Allegations are considered credible when they have indicia of reliability and the
inspector general has reviewed the evidence and acts on a case-by-case basis. A credible
allegation of fraud is an allegation that has been verified by the commissioner from any
source, including but not limited to:
new text end

new text begin (1) fraud hotline complaints;
new text end

new text begin (2) claims data mining; and
new text end

new text begin (3) patterns identified through provider audits, civil false claims cases, and investigations.
new text end

new text begin (d) The commissioner must send notice of the withholding of payments within five days
of taking such action. The notice must: (1) state that payments are being withheld according
to this paragraph; (2) set forth the general allegations as to the reasons for the withholding
action, but need not disclose any specific information concerning an ongoing investigation;
(3) state that the withholding is for a temporary period and cite the circumstances under
which withholding will be terminated; and (4) inform the program participant of the right
to submit written evidence for consideration by the commissioner.
new text end

new text begin (e) The withholding of payments shall not continue after the commissioner determines
there is insufficient evidence of fraud by the program participant or after legal proceedings
relating to the alleged fraud are completed, unless the commissioner has sent notice under
subdivision 5 of the intention to take an additional action related to the program participant's
participation in a program administered by the commissioner.
new text end

new text begin (f) The withholding of payments is a temporary action and shall not be subject to appeal
under this subdivision or chapter 14.
new text end

Sec. 21.

Minnesota Statutes 2024, section 268.19, subdivision 1, is amended to read:

Subdivision 1.

Use of data.

(a) Except as provided by this section, data gathered from
any person under the administration of the Minnesota Unemployment Insurance Law are
private data on individuals or nonpublic data not on individuals as defined in section 13.02,
subdivisions 9 and 12, and may not be disclosed except according to a district court order
or section 13.05. A subpoena is not considered a district court order. These data may be
disseminated to and used by the following agencies without the consent of the subject of
the data:

(1) state and federal agencies specifically authorized access to the data by state or federal
law;

(2) any agency of any other state or any federal agency charged with the administration
of an unemployment insurance program;

(3) any agency responsible for the maintenance of a system of public employment offices
for the purpose of assisting individuals in obtaining employment;

(4) the public authority responsible for child support in Minnesota or any other state in
accordance with section 518A.83;

(5) human rights agencies within Minnesota that have enforcement powers;

(6) the Department of Revenue to the extent necessary for its duties under Minnesota
laws;

(7) public and private agencies responsible for administering publicly financed assistance
programs for the purpose of monitoring the eligibility of the program's recipients;

(8) the Department of Labor and Industry and the Commerce Fraud Bureau in the
Department of Commerce for uses consistent with the administration of their duties under
Minnesota law;

(9) the Department of Human Services and the Office of Inspector General and its agents
within the Department of Human Services, including county fraud investigators, for
investigations related to recipient or provider fraud and employees of providers when the
provider is suspected of committing public assistance fraud;

(10) the Department of Human Services for the purpose of evaluating medical assistance
services and supporting program improvement;

(11) local and state welfare agencies for monitoring the eligibility of the data subject
for assistance programs, or for any employment or training program administered by those
agencies, whether alone, in combination with another welfare agency, or in conjunction
with the department or to monitor and evaluate the statewide Minnesota family investment
program and other cash assistance programs, the Supplemental Nutrition Assistance Program,
and the Supplemental Nutrition Assistance Program Employment and Training program by
providing data on recipients and former recipients of Supplemental Nutrition Assistance
Program (SNAP) benefits, cash assistance under chapter 256, 256D, 256J, or 256K, child
care assistance under chapter 142E, or medical programs under chapter 256B or 256L or
formerly codified under chapter 256D;

(12) local and state welfare agencies for the purpose of identifying employment, wages,
and other information to assist in the collection of an overpayment debt in an assistance
program;

(13) local, state, and federal law enforcement agencies for the purpose of ascertaining
the last known address and employment location of an individual who is the subject of a
criminal investigation;

(14) the United States Immigration and Customs Enforcement has access to data on
specific individuals and specific employers provided the specific individual or specific
employer is the subject of an investigation by that agency;

(15) the Department of Health for the purposes of epidemiologic investigations;

(16) the Department of Corrections for the purposes of case planning and internal research
for preprobation, probation, and postprobation employment tracking of offenders sentenced
to probation and preconfinement and postconfinement employment tracking of committed
offenders;

(17) the state auditor to the extent necessary to conduct audits of job opportunity building
zones as required under section 469.3201;

(18) the Office of Higher Education for purposes of supporting program improvement,
system evaluation, and research initiatives including the Statewide Longitudinal Education
Data System; deleted text begin and
deleted text end

(19) the Family and Medical Benefits Division of the Department of Employment and
Economic Development to be used as necessary to administer chapter 268B deleted text begin . deleted text end new text begin ; and
new text end

new text begin (20) the Department of Education Office of the Inspector General for investigations
related to fraud, theft, waste, and abuse or other misuse of public funds by a program
participant in a department program pursuant to chapter 127A.21.
new text end

(b) Data on individuals and employers that are collected, maintained, or used by the
department in an investigation under section 268.182 are confidential as to data on individuals
and protected nonpublic data not on individuals as defined in section 13.02, subdivisions 3
and 13, and must not be disclosed except under statute or district court order or to a party
named in a criminal proceeding, administrative or judicial, for preparation of a defense.

(c) Data gathered by the department in the administration of the Minnesota unemployment
insurance program must not be made the subject or the basis for any suit in any civil
proceedings, administrative or judicial, unless the action is initiated by the department.

ARTICLE 6

DEPARTMENT OF PUBLIC SAFETY

Section 1.

Minnesota Statutes 2024, section 13.82, subdivision 1, is amended to read:

Subdivision 1.

Application.

This section shall apply to agencies which carry on a law
enforcement function, including but not limited to municipal police departments, county
sheriff departments, fire departments, the Bureau of Criminal Apprehension, the Minnesota
State Patrol, the Board of Peace Officer Standards and Training, deleted text begin the Department of
Commerce, deleted text end and county human service agency client and provider fraud investigation,
prevention, and control units operated or supervised by the Department of Human Services.

Sec. 2.

Minnesota Statutes 2024, section 43A.17, subdivision 13, is amended to read:

Subd. 13.

Compensation for law enforcement officers.

(a) For purposes of this
subdivision, the term "law enforcement officers" means all licensed peace officers employed
by the state who are included in the state units under section 179A.10, subdivision 2,
including without limitation: Minnesota State Patrol troopers, Bureau of Criminal
Apprehension agents, new text begin including Financial Crimes and Fraud Section agents, new text end and Alcohol
and Gambling Enforcement agents, in the Department of Public Safety; Department of
Natural Resources conservation officers; new text begin and new text end Department of Corrections Fugitive
Apprehension Unit members deleted text begin ; and Commerce Fraud Bureau agents in the Department of
Commerce deleted text end .

(b) When the commissioner of management and budget negotiates a collective bargaining
agreement establishing compensation for law enforcement officers, the commissioner must
use compensation and benefit data from the most recent salary and benefits survey conducted
pursuant to section 299D.03, subdivision 2a, to compare salaries to ensure appropriate
increases are made to law enforcement officer salaries and benefits.

Sec. 3.

Minnesota Statutes 2024, section 45.0135, subdivision 2b, is amended to read:

Subd. 2b.

Duties.

The new text begin commissioner of new text end commerce deleted text begin Fraud Bureau shall deleted text end new text begin may new text end :

(1) review notices and reports deleted text begin within the Commerce Fraud Bureau's primary jurisdiction deleted text end
submitted by authorized insurers, their employees, and agents or producers new text begin regarding
insurance fraud, as defined in section 60A.951, subdivision 4 new text end ;

deleted text begin (2) respond to notifications or complaints within the Commerce Fraud Bureau's primary
jurisdiction generated by other law enforcement agencies, state or federal governmental
units, or any other person;
deleted text end

deleted text begin (3) deleted text end new text begin (2) new text end initiate inquiries and conduct investigations new text begin under section 45.027 new text end when the deleted text begin bureau deleted text end new text begin
commissioner new text end has reason to believe that deleted text begin an offense within the Commerce Fraud Bureau's
primary jurisdiction deleted text end new text begin insurance fraud, as defined in section 60A.951, subdivision 4, new text end has been
or is being committed; and

deleted text begin (4) report crimes disclosed by the Commerce Fraud Bureau's investigations to appropriate
law enforcement agencies, including, but not limited to, the attorney general, county
attorneys, or any other appropriate law enforcement or regulatory agency, and shall assemble
evidence, prepare charges, and otherwise assist any law enforcement authority having
jurisdiction.
deleted text end

new text begin (3) share active investigative data pursuant to section 13.39 concerning insurance fraud
with the commissioner of public safety and the Bureau of Criminal Apprehension.
new text end

Sec. 4.

Minnesota Statutes 2024, section 45.0135, is amended by adding a subdivision to
read:

new text begin Subd. 2g. new text end

new text begin Criminal insurance fraud investigations. new text end

new text begin (a) The Bureau of Criminal
Apprehension shall conduct investigations of criminal insurance fraud, as defined in section
609.611, in accordance with section 299C.061.
new text end

new text begin (b) The commissioner shall report criminal insurance fraud-related crimes disclosed by
the Department of Commerce's investigations of civil insurance fraud to the Bureau of
Criminal Apprehension.
new text end

Sec. 5.

Minnesota Statutes 2024, section 45.0135, subdivision 6, is amended to read:

Subd. 6.

Insurance fraud prevention account.

The insurance fraud prevention account
is created in the state treasury. Money received from assessments under deleted text begin subdivision 7 deleted text end new text begin section
299C.061, subdivision 10, new text end and transferred from the automobile theft prevention account in
sections 65B.84, subdivision 1, and 297I.11, subdivision 2, is deposited in the account.
Money in this fund is appropriated to the commissioner of deleted text begin commerce deleted text end new text begin public safety new text end for the
purposes specified in this section and sections 60A.951 to 60A.956.

Sec. 6.

Minnesota Statutes 2024, section 45.0135, subdivision 7, is amended to read:

Subd. 7.

Assessment.

Each insurer authorized to sell insurance in the state of Minnesota,
including surplus lines carriers, and having Minnesota earned premium the previous calendar
year shall remit an assessment to the commissioner new text begin of public safety new text end for deposit in the
insurance fraud prevention account on or before June 1 of each year. The amount of the
assessment shall be based on the insurer's total assets and on the insurer's total written
Minnesota premium, for the preceding fiscal year, as reported pursuant to section 60A.13.
new text begin The commissioner of public safety shall consult with the commissioner of commerce for
purposes of calculating the assessment amount. new text end Beginning with the payment due on or
before June 1, 2024, the assessment amount is:

	Total Assets	Assessment
	Less than $100,000,000		$	400
	$100,000,000 to $1,000,000,000		$	1,500
	Over $1,000,000,000		$	4,000
	Minnesota Written Premium	Assessment
	Less than $10,000,000		$	400
	$10,000,000 to $100,000,000		$	1,500
	Over $100,000,000		$	4,000

For purposes of this subdivision, the following entities are not considered to be insurers
authorized to sell insurance in the state of Minnesota: risk retention groups; or township
mutuals organized under chapter 67A.

Sec. 7.

Minnesota Statutes 2024, section 45.0135, subdivision 8, is amended to read:

Subd. 8.

Investigations; health-related boards.

(a) The deleted text begin Commerce Fraud Bureau deleted text end new text begin
Bureau of Criminal Apprehension new text end may consult with the appropriate health-related board
when a licensee, licensed under chapter 144E, 147, 148, 148B, or 150A, is suspected of
insurance fraud.

(b) The bureau shall, for any conviction involving or related to insurance, send copies
of all public data in its possession to the appropriate health-related licensing board.

Sec. 8.

Minnesota Statutes 2024, section 45.0135, subdivision 9, is amended to read:

Subd. 9.

Administrative penalty for insurance fraud.

(a) The commissioner may:

(1) impose an administrative penalty against any person in an amount as set forth in
paragraph (b) for each intentional act of insurance fraud or substantiated acts of attempted
insurance fraud new text begin , new text end as defined in section 60A.951, subdivision 4, committed by that person;

(2) order restitution to any person suffering loss as a result of the insurance fraud; and

(3) order restitution to a company for the reasonable documented cost of any investigation
in connection with the insurance fraud.

(b) The administrative penalty for each violation described in paragraph (a) may be no
more than:

(1) $20,000 if the funds or the value of the property or services wrongfully obtained
exceeds $5,000;

(2) $10,000 if the funds or value of the property or services wrongfully obtained exceeds
$1,000, but not more than $5,000;

(3) $3,000 if the funds or value of the property or services wrongfully obtained is more
than $500, but not more than $1,000; and

(4) $1,000 if the funds or value of the property or services wrongfully obtained is $500
or less.

(c) If an administrative penalty is not paid after all rights of appeal have been waived
or exhausted, the commissioner may bring a civil action in a court of competent jurisdiction
to collect the administrative penalty, including expenses and litigation costs, reasonable
attorney fees, and interest.

(d) This section does not affect a person's right to seek recovery, including expenses
and litigation costs, reasonable attorney fees, and interest, against any person that commits
insurance fraud.

(e) For purposes of this subdivision, "insurance fraud" has the meaning given in section
60A.951, subdivision 4.

(f) Hearings under this subdivision must be conducted in accordance with chapter 14
and any other applicable law.

(g) All revenues from penalties, expenses, costs, fees, and interest collected under
paragraphs (a) to (c) shall be deposited deleted text begin in deleted text end new text begin into new text end the insurance fraud prevention account under
deleted text begin subdivision 6 deleted text end new text begin section 299C.061, subdivision 9 new text end .

Sec. 9.

Minnesota Statutes 2024, section 60A.951, subdivision 2, is amended to read:

Subd. 2.

Authorized person.

"Authorized person" means the county attorney, sheriff,
or chief of police responsible for investigations in the county where the suspected insurance
fraud occurred; the superintendent of the Bureau of Criminal Apprehension; the commissioner
of commerce; deleted text begin the Commerce Fraud Bureau; deleted text end the commissioner of labor and industry; the
attorney general; or any duly constituted criminal investigative department or agency of the
United States.

Sec. 10.

Minnesota Statutes 2024, section 60A.952, subdivision 2, is amended to read:

Subd. 2.

Notice to and cooperation with the deleted text begin Commerce Fraud Bureau deleted text end new text begin Bureau of
Criminal Apprehension new text end .

Any insurer or insurance professional that has reasonable belief
that an act of insurance fraud will be, is being, or has been committed, shall furnish and
disclose all relevant information to the deleted text begin Commerce Fraud Bureau deleted text end new text begin Bureau of Criminal
Apprehension new text end or to any authorized person and cooperate fully with any investigation
conducted by the deleted text begin Commerce Fraud Bureau deleted text end new text begin Bureau of Criminal Apprehension new text end . Any person
that has a reasonable belief that an act of insurance fraud will be, is being, or has been
committed, or any person who collects, reviews, or analyzes information concerning
insurance fraud may furnish and disclose any information in its possession concerning the
act to the deleted text begin Commerce Fraud Bureau deleted text end new text begin Bureau of Criminal Apprehension new text end , any authorized
person, or to an authorized representative of an insurer that requests the information for the
purpose of detecting, prosecuting, or preventing insurance fraud. The insurer may also
release relevant information to any person authorized to receive the information under
section 72A.502, subdivision 2. If disclosure is made to an authorized person other than the
deleted text begin Commerce Fraud Bureau deleted text end new text begin Bureau of Criminal Apprehension new text end , a copy of the disclosure must
be sent to the deleted text begin Commerce Fraud Bureau deleted text end new text begin Bureau of Criminal Apprehension new text end .

Sec. 11.

Minnesota Statutes 2024, section 60A.952, subdivision 4, is amended to read:

Subd. 4.

Tolling of time periods.

If an insurer has a reasonable or probable cause to
believe that an insurance fraud has been committed in connection with an insurance claim,
and has properly notified the deleted text begin Commerce Fraud Bureau deleted text end new text begin Bureau of Criminal Apprehension new text end
of its suspicions according to subdivision 2, the notification tolls any applicable time period
in any unfair claims practices statute or related regulations, or any action on the claim against
the insurer to whom the claim had been presented for bad faith, until 30 days after
determination by the deleted text begin Commerce Fraud Bureau deleted text end new text begin Bureau of Criminal Apprehension new text end and notice
to the insurer that the deleted text begin division deleted text end new text begin Bureau of Criminal Apprehension new text end will not recommend action
on the claim.

Sec. 12.

Minnesota Statutes 2024, section 60A.952, subdivision 5, is amended to read:

Subd. 5.

Reward for information.

The deleted text begin Commerce Fraud Bureau deleted text end new text begin Bureau of Criminal
Apprehension new text end , in cooperation with authorized insurers and insurance professionals, may
establish a voluntary fund to reward persons not connected with the insurance industry who
provide information or furnish evidence leading to the arrest and conviction of persons
responsible for insurance fraud.

Sec. 13.

Minnesota Statutes 2024, section 60A.954, subdivision 2, is amended to read:

Subd. 2.

Review.

The commissioner may review each insurer's antifraud plan to determine
whether it complies with the requirements of this section. If the commissioner finds that an
insurer's antifraud plan does not comply with the requirements of this section, the
commissioner shall disapprove the plan and send a notice of disapproval, along with the
reasons for disapproval, to the insurer. An insurer whose antifraud plan has been disapproved
by the commissioner shall submit a new plan to the commissioner within 60 days after the
plan was disapproved. The commissioner may examine an insurer's procedures to determine
whether the insurer is complying with its antifraud plan. The commissioner shall withhold
from public inspection any part of an insurer's antifraud plan for so long as the commissioner
deems the withholding to be in the public interest. new text begin The commissioner may share an insurer's
complete antifraud plan with the Bureau of Criminal Apprehension.
new text end

Sec. 14.

Minnesota Statutes 2024, section 60A.956, is amended to read:

60A.956 OTHER LAW ENFORCEMENT AUTHORITY.

Nothing in sections 60A.951 to 60A.956 preempts the authority of or relieves the duty
of any other law enforcement agencies to investigate and prosecute alleged violations of
law, prevents or prohibits a person from voluntarily disclosing any information concerning
insurance fraud to any law enforcement agency other than the deleted text begin Commerce Fraud Bureau deleted text end new text begin
Bureau of Criminal Apprehension new text end , or limits any of the powers granted elsewhere by the
laws of this state to the commissioner of commerce to investigate alleged violations of law
and to take appropriate action.

Sec. 15.

Minnesota Statutes 2024, section 65B.84, is amended to read:

65B.84 AUTOMOBILE THEFT PREVENTION PROGRAM.

Subdivision 1.

Program described; commissioner's duties; appropriation.

(a) The
commissioner of deleted text begin commerce deleted text end new text begin public safety new text end shall:

(1) develop and sponsor the implementation of statewide plans, programs, and strategies
to combat automobile theft, improve the administration of the automobile theft laws, and
provide a forum for identification of critical problems for those persons dealing with
automobile theft;

(2) coordinate the development, adoption, and implementation of plans, programs, and
strategies relating to interagency and intergovernmental cooperation with respect to
automobile theft enforcement;

(3) annually audit the plans and programs that have been funded in whole or in part to
evaluate the effectiveness of the plans and programs and withdraw funding should the
commissioner determine that a plan or program is ineffective or is no longer in need of
further financial support from the fund;

(4) develop a plan of operation including:

(i) an assessment of the scope of the problem of automobile theft, including areas of the
state where the problem is greatest;

(ii) an analysis of various methods of combating the problem of automobile theft;

(iii) a plan for providing financial support to combat automobile theft;

(iv) a plan for eliminating car hijacking; and

(v) an estimate of the funds required to implement the plan; and

(5) distribute money, in consultation with the commissioner of deleted text begin public safety deleted text end new text begin commerce new text end ,
pursuant to subdivision 3 from the automobile theft prevention special revenue account for
automobile theft prevention activities, including:

(i) paying the administrative costs of the program;

(ii) providing financial support to the State Patrol and local law enforcement agencies
for automobile theft enforcement teams;

(iii) providing financial support to state or local law enforcement agencies for programs
designed to reduce the incidence of automobile theft and for improved equipment and
techniques for responding to automobile thefts;

(iv) providing financial support to local prosecutors for programs designed to reduce
the incidence of automobile theft;

(v) providing financial support to judicial agencies for programs designed to reduce the
incidence of automobile theft;

(vi) providing financial support for neighborhood or community organizations or business
organizations for programs designed to reduce the incidence of automobile theft and to
educate people about the common methods of automobile theft, the models of automobiles
most likely to be stolen, and the times and places automobile theft is most likely to occur;
and

(vii) providing financial support for automobile theft educational and training programs
for state and local law enforcement officials, driver and vehicle services exam and inspections
staff, and members of the judiciary.

(b) The commissioner may not spend in any fiscal year more than ten percent of the
money in the fund for the program's administrative and operating costs. The commissioner
is annually appropriated and must distribute the amount of the proceeds credited to the
automobile theft prevention special revenue account each year, less the transfer of $1,300,000
each year to the insurance fraud prevention account described in section 297I.11, subdivision
2.

(c) At the end of each fiscal year, the commissioner may transfer any unobligated balances
in the auto theft prevention account to the insurance fraud prevention account under section
deleted text begin 45.0135, subdivision 6 deleted text end new text begin 299C.061, subdivision 9 new text end .

(d) The commissioner must establish a library of equipment to combat automobile-related
theft offenses. The equipment must be available to all law enforcement agencies upon
request to support law enforcement agency efforts to combat automobile theft.

Subd. 2.

Annual report.

By September 30 each year, the commissioner new text begin of public safety
new text end shall report to the governor and the chairs and ranking minority members of the house of
representatives and senate committees having jurisdiction over the deleted text begin Departments deleted text end new text begin Department new text end
of deleted text begin Commerce and deleted text end Public Safety on the activities and expenditures in the preceding year.

Subd. 3.

Grant criteria; application.

(a) A county attorney's office, law enforcement
agency, neighborhood organization, community organization, or business organization may
apply for a grant under this section. Multiple offices or agencies within a county may apply
for a grant under this section.

(b) The commissioner new text begin of public safety new text end , in consultation with the commissioner of deleted text begin public
safety deleted text end new text begin commerce new text end , must develop criteria for the fair distribution of grants from the automobile
theft prevention account that address the following factors:

(1) the number of reported automobile thefts per capita in a city, county, or region, not
merely the total number of automobile thefts;

(2) the population of the jurisdiction of the applicant office or agency;

(3) the total funds distributed within a county or region; and

(4) the statewide interest in automobile theft reduction.

(c) The commissioner may give priority to:

(1) offices and agencies engaged in a collaborative effort to reduce automobile theft;
and

(2) counties or regions with the greatest rates of automobile theft.

(d) The minimum amount of a grant award is $5,000. After considering the automobile
theft rate and total population of an applicant's jurisdiction, if a grant award, as determined
under the criteria and priorities in this subdivision, would be less than $5,000, it must not
be awarded.

Subd. 4.

Advisory board; creation; membership.

An Automobile Theft Prevention
Advisory Board is established to advise the commissioner on the distribution of grants under
this section. The board must consist of seven members appointed by the commissioner new text begin of
public safety new text end and must include representatives of law enforcement, prosecuting agencies,
automobile insurers, and the public. The commissioner must annually select a chair from
among its members.

Subd. 5.

Definition.

For purposes of this section, "automobile theft" includes
automobile-related theft.

Sec. 16.

Minnesota Statutes 2024, section 268.19, subdivision 1, is amended to read:

Subdivision 1.

Use of data.

(a) Except as provided by this section, data gathered from
any person under the administration of the Minnesota Unemployment Insurance Law are
private data on individuals or nonpublic data not on individuals as defined in section 13.02,
subdivisions 9 and 12, and may not be disclosed except according to a district court order
or section 13.05. A subpoena is not considered a district court order. These data may be
disseminated to and used by the following agencies without the consent of the subject of
the data:

(1) state and federal agencies specifically authorized access to the data by state or federal
law;

(2) any agency of any other state or any federal agency charged with the administration
of an unemployment insurance program;

(3) any agency responsible for the maintenance of a system of public employment offices
for the purpose of assisting individuals in obtaining employment;

(4) the public authority responsible for child support in Minnesota or any other state in
accordance with section 518A.83;

(5) human rights agencies within Minnesota that have enforcement powers;

(6) the Department of Revenue to the extent necessary for its duties under Minnesota
laws;

(7) public and private agencies responsible for administering publicly financed assistance
programs for the purpose of monitoring the eligibility of the program's recipients;

(8) the Department of Labor and Industry deleted text begin and the Commerce Fraud Bureau in deleted text end new text begin , new text end the
Department of Commerce new text begin , and the Bureau of Criminal Apprehension new text end for uses consistent
with the administration of their duties under Minnesota law;

(9) the Department of Human Services and the Office of Inspector General and its agents
within the Department of Human Services, including county fraud investigators, for
investigations related to recipient or provider fraud and employees of providers when the
provider is suspected of committing public assistance fraud;

(10) the Department of Human Services for the purpose of evaluating medical assistance
services and supporting program improvement;

(11) local and state welfare agencies for monitoring the eligibility of the data subject
for assistance programs, or for any employment or training program administered by those
agencies, whether alone, in combination with another welfare agency, or in conjunction
with the department or to monitor and evaluate the statewide Minnesota family investment
program and other cash assistance programs, the Supplemental Nutrition Assistance Program,
and the Supplemental Nutrition Assistance Program Employment and Training program by
providing data on recipients and former recipients of Supplemental Nutrition Assistance
Program (SNAP) benefits, cash assistance under chapter 256, 256D, 256J, or 256K, child
care assistance under chapter 142E, or medical programs under chapter 256B or 256L or
formerly codified under chapter 256D;

(12) local and state welfare agencies for the purpose of identifying employment, wages,
and other information to assist in the collection of an overpayment debt in an assistance
program;

(13) local, state, and federal law enforcement agencies for the purpose of ascertaining
the last known address and employment location of an individual who is the subject of a
criminal investigation;

(14) the United States Immigration and Customs Enforcement has access to data on
specific individuals and specific employers provided the specific individual or specific
employer is the subject of an investigation by that agency;

(15) the Department of Health for the purposes of epidemiologic investigations;

(16) the Department of Corrections for the purposes of case planning and internal research
for preprobation, probation, and postprobation employment tracking of offenders sentenced
to probation and preconfinement and postconfinement employment tracking of committed
offenders;

(17) the state auditor to the extent necessary to conduct audits of job opportunity building
zones as required under section 469.3201;

(18) the Office of Higher Education for purposes of supporting program improvement,
system evaluation, and research initiatives including the Statewide Longitudinal Education
Data System; and

(19) the Family and Medical Benefits Division of the Department of Employment and
Economic Development to be used as necessary to administer chapter 268B.

(b) Data on individuals and employers that are collected, maintained, or used by the
department in an investigation under section 268.182 are confidential as to data on individuals
and protected nonpublic data not on individuals as defined in section 13.02, subdivisions 3
and 13, and must not be disclosed except under statute or district court order or to a party
named in a criminal proceeding, administrative or judicial, for preparation of a defense.

(c) Data gathered by the department in the administration of the Minnesota unemployment
insurance program must not be made the subject or the basis for any suit in any civil
proceedings, administrative or judicial, unless the action is initiated by the department.

Sec. 17.

Minnesota Statutes 2024, section 268B.30, is amended to read:

268B.30 DATA PRIVACY.

(a) Except as provided by this section, data collected, created, or maintained under this
chapter are private data on individuals or nonpublic data not on individuals as defined in
section 13.02, subdivisions 9 and 12, and must not be disclosed except according to a district
court order or section 13.05. A subpoena is not considered a district court order.

(b) Data classified under paragraph (a) may be disseminated to and used by the following
without the consent of the subject of the data:

(1) state and federal agencies specifically authorized access to the data by state or federal
law;

(2) the unemployment insurance division, to the extent necessary to administer the
programs established under this chapter and chapter 268;

(3) employers, to the extent necessary to support adjudication of application requests
and to support the employer's administration of a leave of absence;

(4) health care providers, to the extent necessary to support verification of health care
conditions and qualifying events;

(5) the public authority responsible for child support in Minnesota or any other state in
accordance with section 518A.83;

(6) human rights agencies within Minnesota that have enforcement powers;

(7) the Department of Revenue, to the extent necessary for its duties under Minnesota
laws;

(8) public and private agencies responsible for administering publicly financed assistance
programs for the purpose of monitoring the eligibility of the program's recipients;

(9) the Department of Labor and Industry deleted text begin and the Commerce Fraud Bureau in deleted text end new text begin , new text end the
Department of Commerce new text begin , and the Bureau of Criminal Apprehension new text end for uses consistent
with the administration of their duties under Minnesota law;

(10) the Department of Human Services and the Office of Inspector General and its
agents within the Department of Human Services, including county fraud investigators, for
investigations related to recipient or provider fraud and employees of providers when the
provider is suspected of committing public assistance fraud;

(11) the Department of Public Safety for support in identity verification;

(12) local, state, and federal law enforcement agencies for the purpose of ascertaining
the last known address and employment location of an individual who is the subject of a
criminal investigation;

(13) the Department of Health for the purposes of epidemiologic investigations;

(14) the Department of Corrections for the purposes of tracking incarceration of
applicants; and

(15) contracted third parties, to the extent necessary to aid in identity verification,
adjudication, administration, and evaluation of the program.

(c) Data on individuals and employers that are collected, maintained, or used by the
department in an investigation under section 268B.19, 268B.21, 268B.22, or 268B.23 are
confidential as to data on individuals and protected nonpublic data not on individuals as
defined in section 13.02, subdivisions 3 and 13, and must not be disclosed except under
statute or district court order or to a party named in a criminal proceeding, administrative
or judicial, for preparation of a defense.

(d) Data gathered by the department in the administration of this chapter must not be
made the subject or the basis for any suit in any civil proceedings, administrative or judicial,
unless the action is initiated by the department.

Sec. 18.

Minnesota Statutes 2024, section 297I.11, subdivision 2, is amended to read:

Subd. 2.

Automobile theft prevention account.

A special revenue account in the state
treasury shall be credited with the proceeds of the surcharge imposed under subdivision 1.
Of the revenue in the account, $1,300,000 each year must be transferred to the insurance
fraud prevention account under section deleted text begin 45.0135, subdivision 6 deleted text end new text begin 299C.061, subdivision 9 new text end .
Revenues in excess of $1,300,000 each year may be used only for the automobile theft
prevention program described in section 65B.84.

Sec. 19.

new text begin [299C.061] FINANCIAL CRIMES AND FRAUD SECTION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Fraud involving state funded or administered programs or services" includes any
violation of section 609.445, 609.465, 609.466, 609.52, 609.5523, 609.611, 609.651,
609.7475, or 609.821 involving a state agency or state funded or administered program or
service.
new text end

new text begin (c) "Peace officer" has the meaning given in section 626.84, subdivision 1, paragraph
(c).
new text end

new text begin (d) "State agency" has the meaning given in section 13.02, subdivision 17.
new text end

new text begin (e) "Superintendent" means the superintendent of the Bureau of Criminal Apprehension.
new text end

new text begin (f) "Section" means the Financial Crimes and Fraud Section of the Bureau of Criminal
Apprehension.
new text end

new text begin Subd. 2. new text end

new text begin Financial Crimes and Fraud Section. new text end

new text begin The superintendent shall operate the
Financial Crimes and Fraud Section within the Bureau of Criminal Apprehension to conduct
investigations into insurance fraud, financial crimes, wage theft, and fraud involving state
funded or administered programs or services. The Section shall be partially or fully comprised
of licensed peace officers. Members of this section have the full authorities specified in
chapter 299C and are not limited to the duties enumerated in this section.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The Financial Crimes and Fraud Section shall:
new text end

new text begin (1) review notices and reports of insurance fraud and related crimes submitted by
authorized insurers, their employees, and agents or producers pursuant to sections 60A.951
to 60A.956;
new text end

new text begin (2) initiate inquiries and conduct investigations when the Section has reason to believe
that any of the following offenses have been or are being committed:
new text end

new text begin (i) fraud involving state funded or administered programs or services in subdivision 1,
paragraph (b);
new text end

new text begin (ii) insurance fraud and related crimes, as defined in sections 60A.951, subdivision 4,
and 609.611 and support of those activities;
new text end

new text begin (iii) wage theft and related crimes; and
new text end

new text begin (iv) any other financial crimes; and
new text end

new text begin (3) operate the automobile theft prevention program under section 65B.84.
new text end

new text begin Subd. 4. new text end

new text begin Mandatory referral; duty to investigate. new text end

new text begin (a) Except as provided in paragraphs
(b) and (d), a state agency shall refer all suspected fraudulent activity under the provisions
in subdivision 1, paragraph (b), equaling $100,000 or more, to the Section for evaluation
and investigation or appropriate referral. Upon receipt of the referral, the Section shall
review and, where appropriate, conduct criminal investigations into the allegations. The
Section has sole discretion as to which allegations are investigated further, referred back to
the reporting agency for appropriate regulatory investigation, or referred to another law
enforcement agency with appropriate jurisdiction.
new text end

new text begin (b) When acting in a civil or criminal law enforcement capacity and permitted by
applicable law or order, the attorney general may, in the attorney general's discretion, refer
suspected fraudulent activity under the provisions in subdivision 1, paragraph (b), to the
Section for evaluation and investigation or appropriate referral in accordance with paragraph
(a).
new text end

new text begin (c) Notwithstanding paragraph (b), this section has no effect on the authority of the
attorney general to investigate and enforce violations or suspected violations of Minnesota
civil or criminal law.
new text end

new text begin (d) Referral to the Section under this subdivision is not required when a state agency is
required to refer the fraudulent activity to the state Medicaid Fraud Control Unit in
accordance with Code of Federal Regulations, title 42, section 455.21(A)(1)(a), and section
256B.04, subdivision 10.
new text end

new text begin Subd. 5. new text end

new text begin Discretionary referral. new text end

new text begin (a) A state agency may refer suspected fraud involving
state funded or administered programs or services equaling less than $100,000 to the Section
for investigation. Upon referral, the Section shall:
new text end

new text begin (1) accept the referral and, where appropriate, conduct criminal investigations into the
allegations and make appropriate referrals for criminal prosecution; or
new text end

new text begin (2) redirect the referral to another appropriate law enforcement agency or civil
investigative authority, offering assistance where appropriate.
new text end

new text begin Subd. 6. new text end

new text begin Data-sharing authorized. new text end

new text begin Notwithstanding chapter 13 or any other statute
related to the classification of government data to the contrary, state agencies making a
referral under subdivision 3 or 4 shall provide data related to the suspected fraudulent activity
to the Section, including data classified as not public. The Section may share active criminal
investigative data concerning insurance fraud with the Department of Commerce.
new text end

new text begin Subd. 7. new text end

new text begin State agency reporting. new text end

new text begin By January 15 of each year, each state agency must
report all suspected fraud incurred by the agency that involves state funded or administered
programs or services equaling $10,000 or more to the Section to be summarized in the report
under subdivision 8. This subdivision does not apply to information obtained by the attorney
general when acting in a civil or criminal law enforcement capacity.
new text end

new text begin Subd. 8. new text end

new text begin Annual report. new text end

new text begin (a) By February 1 of each year, the superintendent shall report
to the commissioner, the governor, and the chairs and ranking minority members of the
legislative committees with jurisdiction over public safety policy and finance, and commerce
consumer protection policy and finance, the following information pertaining to the Section
since the previous report:
new text end

new text begin (1) the number of investigations initiated;
new text end

new text begin (2) the number of allegations investigated;
new text end

new text begin (3) the outcomes or current status of each investigation;
new text end

new text begin (4) the charging decisions made by the prosecuting authority of incidents investigated
by the Section;
new text end

new text begin (5) the number of plea agreements reached in incidents investigated by the Section;
new text end

new text begin (6) the number of reports received under subdivision 7;
new text end

new text begin (7) the number of state agency referrals to the state Medicaid Fraud Control Unit reported
to the superintendent under paragraph (b); and
new text end

new text begin (8) any other information relevant to the Section's responsibilities.
new text end

new text begin (b) No later than January 15 of each odd-numbered year, each state agency that is required
to make referrals to the state Medicaid Fraud Control Unit in accordance with Code of
Federal Regulations, title 42, section 455.21(A)(1)(a), and section 256B.04, subdivision 10,
shall report the following information to the superintendent for the two previous calendar
years:
new text end

new text begin (1) the number of cases referred to the state Medicaid Fraud Control Unit;
new text end

new text begin (2) the number of referrals accepted by the state Medicaid Fraud Control Unit; and
new text end

new text begin (3) the number of referrals declined by the state Medicaid Fraud Control Unit.
new text end

new text begin Subd. 9. new text end

new text begin Funding allocation. new text end

new text begin One hundred percent of the funding allocated to the Bureau
of Criminal Apprehension for the assessment in subdivision 10 may only be used for the
investigation of insurance fraud and related crimes, as defined in sections 60A.951,
subdivision 4, and 609.611, and support of those activities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin (a) Subdivisions 1, 2, 3, 6, and 9 are effective July 1, 2025.
new text end

new text begin (b) Subdivisions 4, 5, 7, and 8 are effective January 1, 2026.
new text end

Sec. 20.

Minnesota Statutes 2024, section 299C.40, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) The definitions in this subdivision apply to this section.

(b) "CIBRS" means the Comprehensive Incident-Based Reporting System, located in
the Department of Public Safety and managed by the Bureau of Criminal Apprehension. A
reference in this section to "CIBRS" includes the Bureau of Criminal Apprehension.

(c) "Law enforcement agency" means a Minnesota municipal police department, the
Metropolitan Transit Police, the Metropolitan Airports Police, the University of Minnesota
Police Department, the Department of Corrections Fugitive Apprehension Unit, a Minnesota
county sheriff's department, the Enforcement Division of the Department of Natural
Resources, deleted text begin the Commerce Fraud Bureau, deleted text end the Bureau of Criminal Apprehension, or the
Minnesota State Patrol.

Sec. 21.

Minnesota Statutes 2024, section 609.531, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purpose of sections 609.531 to 609.5318, the
following terms have the meanings given them.

(a) "Conveyance device" means a device used for transportation and includes, but is not
limited to, a motor vehicle, trailer, snowmobile, airplane, and vessel and any equipment
attached to it. The term "conveyance device" does not include property which is, in fact,
itself stolen or taken in violation of the law.

(b) "Weapon used" means a dangerous weapon as defined under section 609.02,
subdivision 6, that the actor used or had in possession in furtherance of a crime.

(c) "Property" means property as defined in section 609.52, subdivision 1, clause (1).

(d) "Contraband" means property which is illegal to possess under Minnesota law.

(e) "Appropriate agency" means the Bureau of Criminal Apprehension, deleted text begin the Department
of Commerce Fraud Bureau, deleted text end the Minnesota Division of Driver and Vehicle Services, the
Minnesota State Patrol, a county sheriff's department, the Three Rivers Park District
Department of Public Safety, the Department of Natural Resources Division of Enforcement,
the University of Minnesota Police Department, the Department of Corrections Fugitive
Apprehension Unit, a city, metropolitan transit, or airport police department; or a
multijurisdictional entity established under section 299A.642 or 299A.681.

(f) "Designated offense" includes:

(1) for weapons used: any violation of this chapter, chapter 152 or 624;

(2) for driver's license or identification card transactions: any violation of section 171.22;
and

(3) for all other purposes: a felony violation of, or a felony-level attempt or conspiracy
to violate, section 325E.17; 325E.18; 609.185; 609.19; 609.195; 609.2112; 609.2113;
609.2114; 609.221; 609.222; 609.223; 609.2231; 609.2335; 609.24; 609.245; 609.247;
609.25; 609.255; 609.282; 609.283; 609.322; 609.342, subdivision 1, or subdivision 1a,
clauses (a) to (f) and (i); 609.343, subdivision 1, or subdivision 1a, clauses (a) to (f) and (i);
609.344, subdivision 1, or subdivision 1a, clauses (a) to (e), (h), or (i); 609.345, subdivision
1, or subdivision 1a, clauses (a) to (e), (h), and (i); 609.352; 609.42; 609.425; 609.466;
609.485; 609.487; 609.52; 609.525; 609.527; 609.528; 609.53; 609.54; 609.551; 609.561;
609.562; 609.563; 609.582; 609.59; 609.595; 609.611; 609.631; 609.66, subdivision 1e;
609.671, subdivisions 3, 4, 5, 8, and 12; 609.687; 609.821; 609.825; 609.86; 609.88; 609.89;
609.893; 609.895; 617.246; 617.247; or a gross misdemeanor or felony violation of section
609.891 or 624.7181; or any violation of section 609.324; or a felony violation of, or a
felony-level attempt or conspiracy to violate, Minnesota Statutes 2012, section 609.21.

(g) "Controlled substance" has the meaning given in section 152.01, subdivision 4.

(h) "Prosecuting authority" means the attorney who is responsible for prosecuting an
offense that is the basis for a forfeiture under sections 609.531 to 609.5318.

(i) "Asserting person" means a person, other than the driver alleged to have used a vehicle
in the transportation or exchange of a controlled substance intended for distribution or sale,
claiming an ownership interest in a vehicle that has been seized or restrained under this
section.

Sec. 22.

new text begin [609.5523] THEFT OF PUBLIC FUNDS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Public funds" means all general, special, permanent, trust, and other funds, regardless
of source or purpose, held or administered by a government entity.
new text end

new text begin (c) "Government entity" has the meaning provided in section 13.02, subdivision 7a.
new text end

new text begin Subd. 2. new text end

new text begin Acts constituting theft of public funds. new text end

new text begin A person who engages in any of the
following commits theft of public funds and may be sentenced as provided in subdivision
3:
new text end

new text begin (1) intentionally and without claim of right takes, uses, transfers, conceals, or retains
possession of public funds from a government entity or a third party administering a program
funded by public vendors without consent and with intent to permanently deprive the
government entity of the possession of public funds;
new text end

new text begin (2) obtains, for the actor or another, possession or custody of public funds from a
government entity or third party administering a publicly funded program by intentionally
deceiving the government entity or third party with a false representation that the actor or
another knows to be false, is made with intent to defraud, and does defraud the government
entity or third party to whom the false representation is made. False representation includes
but is not limited to:
new text end

new text begin (i) a promise made with intent not to perform. Failure to perform is not evidence of
intent not to perform unless corroborated by other substantial evidence; or
new text end

new text begin (ii) the preparation or filing of a claim for reimbursement, a rate application, or a cost
report that intentionally and falsely misrepresents the costs of or actual services provided
by a vendor; or
new text end

new text begin (3) swindling, whether by artifice, trick, device, or any other means, in order to obtain
public funds or publicly funded services from a government entity or a third party
administering a program funded by public funds.
new text end

new text begin Subd. 3. new text end

new text begin Sentence. new text end

new text begin (a) A person who commits theft of public funds may be sentenced:
new text end

new text begin (1) to imprisonment for not more than 24 years or to payment of a fine of not more than
$100,000, or both, if the value of property stolen is more than $35,000;
new text end

new text begin (2) to imprisonment for not more than 12 years or to payment of a fine of not more than
$20,000, or both, if the value of the property stolen exceeds $5,000; or
new text end

new text begin (3) to imprisonment for not more than six years or to payment of a fine of not more than
$10,000, or both, if the value of the property is more than $1,000 but not more than $5,000.
new text end

new text begin (b) In any prosecution for theft of public funds, the value of the money or property
received by the defendant in violation of any of these provisions within any six-month
period may be aggregated and the defendant charged accordingly under the provisions of
this subdivision.
new text end

Sec. 23.

Minnesota Statutes 2024, section 626.05, subdivision 2, is amended to read:

Subd. 2.

Peace officer.

The term "peace officer," as used in sections 626.04 to 626.17,
means a person who is licensed as a peace officer in accordance with section 626.84,
subdivision 1, and who serves as a sheriff, deputy sheriff, police officer, conservation officer,
agent of the Bureau of Criminal Apprehension, agent of the Division of Alcohol and
Gambling Enforcement, deleted text begin peace officer of the Commerce Fraud Bureau, deleted text end University of
Minnesota peace officer, Metropolitan Transit police officer, Minnesota Department of
Corrections Fugitive Apprehension Unit member, State Patrol trooper as authorized by
section 299D.03, or railroad peace officer as authorized by section 219.995 and United
States Code, title 49, section 28101.

Sec. 24.

Minnesota Statutes 2024, section 626.84, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For purposes of sections 626.84 to 626.863, the following
terms have the meanings given them:

(a) "Board" means the Board of Peace Officer Standards and Training.

(b) "Director" means the executive director of the board.

(c) "Peace officer" means:

(1) an employee or an elected or appointed official of a political subdivision or law
enforcement agency who is licensed by the board, charged with the prevention and detection
of crime and the enforcement of the general criminal laws of the state and who has the full
power of arrest, and shall also include the Minnesota State Patrol, agents of the Division of
Alcohol and Gambling Enforcement, state conservation officers, Metropolitan Transit police
officers, Department of Corrections Fugitive Apprehension Unit officers, deleted text begin Department of
Commerce Fraud Bureau Unit officers, deleted text end the statewide coordinator of the Violent Crime
Coordinating Council, and railroad peace officers as authorized by section 219.995 and
United States Code, title 49, section 28101; and

(2) a peace officer who is employed by a law enforcement agency of a federally
recognized tribe, as defined in United States Code, title 25, section 450b(e), and who is
licensed by the board.

(d) "Part-time peace officer" means an individual licensed by the board whose services
are utilized by law enforcement agencies no more than an average of 20 hours per week,
not including time spent on call when no call to active duty is received, calculated on an
annual basis, who has either full powers of arrest or authorization to carry a firearm while
on active duty. The term shall apply even though the individual receives no compensation
for time spent on active duty, and shall apply irrespective of the title conferred upon the
individual by any law enforcement agency.

(e) "Reserve officer" means an individual whose services are utilized by a law
enforcement agency to provide supplementary assistance at special events, traffic or crowd
control, and administrative or clerical assistance, and shall include reserve deputies, special
deputies, mounted or unmounted patrols, and all other employees or volunteers performing
reserve officer functions. A reserve officer's duties do not include enforcement of the general
criminal laws of the state, and the officer does not have full powers of arrest or authorization
to carry a firearm on duty.

(f) "Law enforcement agency" means:

(1) a unit of state or local government that is authorized by law to grant full powers of
arrest and to charge a person with the duties of preventing and detecting crime and enforcing
the general criminal laws of the state;

(2) subject to the limitations in section 626.93, a law enforcement agency of a federally
recognized tribe, as defined in United States Code, title 25, section 450b(e); and

(3) subject to the limitation of section 219.995, a railroad company.

(g) "Professional peace officer education" means a postsecondary degree program, or a
nondegree program for persons who already have a college degree, that is offered by a
college or university in Minnesota, designed for persons seeking licensure as a peace officer,
and approved by the board.

(h) "Railroad peace officer" means an individual as authorized under United States Code,
title 49, section 28101:

(1) employed by a railroad for the purpose of aiding and supplementing law enforcement
agencies in the protection of property owned by or in the care, custody, or control of a
railroad and to protect the persons and property of railroad passengers and employees; and

(2) licensed by the board.

Sec. 25. new text begin REVISOR INSTRUCTION.
new text end

new text begin The revisor of statutes shall renumber the subdivisions in column A with the number
listed in column B. The revisor shall also make necessary cross-reference changes in
Minnesota Statutes and Minnesota Rules consistent with the renumbering.
new text end

	new text begin Column A new text end	new text begin Column B new text end
	new text begin section 45.0135, subdivision 6 new text end	new text begin section 299C.061, subdivision 9 new text end
	new text begin section 45.0135, subdivision 7 new text end	new text begin section 299C.061, subdivision 10 new text end
	new text begin section 45.0135, subdivision 8 new text end	new text begin section 299C.061, subdivision 11 new text end
	new text begin section 45.0135, subdivision 9 new text end	new text begin section 299C.061, subdivision 12 new text end
	new text begin section 299C.061, subdivision 9 new text end	new text begin section 299C.061, subdivision 13 new text end

Sec. 26. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, sections 45.0135, subdivisions 2a, 2c, 2d, 2e, 2f, 3, 4, and 5;
and 325E.21, subdivision 2b, new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 25-04814

45.0135 COMMERCE FRAUD BUREAU.

Subd. 2a.

Authorization.

(a) The commissioner may appoint peace officers, as defined in section 626.84, subdivision 1, paragraph (c), and establish a law enforcement agency, as defined in section 626.84, subdivision 1, paragraph (f), known as the Commerce Fraud Bureau, to conduct investigations, and to make arrests under sections 629.30 and 629.34. The primary jurisdiction of the law enforcement agency is limited to offenses with a nexus to insurance-related crimes or financial crimes.

(b) Upon request and at the commissioner's discretion, the Commerce Fraud Bureau may respond to a law enforcement agency's request to exercise law enforcement duties in cooperation with the law enforcement agency that has jurisdiction over the particular matter.

(c) The Commerce Fraud Bureau must allocate at least 70 percent of its work to insurance fraud, as defined in sections 60A.951, subdivision 4, and 609.611.

Subd. 2c.

Arrests and investigations.

The initial processing of a person arrested by the Commerce Fraud Bureau for an offense within its jurisdiction is the responsibility of the bureau unless otherwise directed by the law enforcement agency with primary jurisdiction. Subsequent investigation shall be the responsibility of the bureau unless otherwise directed by the law enforcement agency with primary jurisdiction. At the request of the primary jurisdiction, the bureau may assist in a subsequent investigation being carried out by the primary jurisdiction.

Subd. 2d.

Policy for notice of investigations.

The Commerce Fraud Bureau must develop a policy for notifying the law enforcement agency with primary jurisdiction when it has initiated investigation of any person within the jurisdiction of that agency.

Subd. 2e.

Chief law enforcement officer.

The commissioner shall appoint a peace officer employed full time to be the chief law enforcement officer and to be responsible for the management of the Commerce Fraud Bureau. The chief law enforcement officer shall possess the necessary police and management experience to manage a law enforcement agency. The chief law enforcement officer may appoint, discipline, and discharge all employees of the bureau. All police managerial and supervisory personnel must be full-time employees of the bureau. Supervisory personnel must be on duty and available any time peace officers of the bureau are on duty.

Subd. 2f.

Compliance.

Except as otherwise provided in this section, the Commerce Fraud Bureau shall comply with all statutes and administrative rules relating to the operation and management of a law enforcement agency.

Subd. 3.

Evidence, documentation, and related materials.

If the bureau seeks evidence, documentation, and related materials pertinent to an investigation, and the matter is located outside of this state, the bureau may designate representatives, including officials of the state where the matter is located, to secure the matter or inspect the matter on its behalf.

Subd. 4.

Confidentiality and immunity.

The provisions of chapter 13, including, but not limited to, section 13.82, apply to the classification, disclosure, and collection of data relating to the Commerce Fraud Bureau.

Subd. 5.

Annual report on activities and cost-effectiveness.

The Commerce Fraud Bureau shall maintain records and information in order to produce an annual report of its activities as may be prescribed by the commissioner of commerce. The commissioner shall report annually to the house of representatives and senate standing committees with jurisdiction over insurance issues as to the activities of the bureau and the cost-effectiveness of the programs established by the bureau.

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.

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.

254B.04 ELIGIBILITY FOR BEHAVIORAL HEALTH FUND SERVICES.

Subd. 2a.

Eligibility for room and board services for persons in outpatient substance use disorder treatment.

A person eligible for room and board services under section 254B.05, subdivision 5, paragraph (b), must score at level 4 on assessment dimensions related to readiness to change, relapse, continued use, or recovery environment in order to be assigned to services with a room and board component reimbursed under this section. Whether a treatment facility has been designated an institution for mental diseases under United States Code, title 42, section 1396d, shall not be a factor in making placements.

325E.21 DEALERS IN SCRAP METAL; RECORDS, REPORTS, AND REGISTRATION.

Subd. 2b.

Catalytic converter theft prevention pilot project.

(a) The catalytic converter theft prevention pilot project is created to deter the theft of catalytic converters by marking them with vehicle identification numbers or other unique identifiers.

(b) The commissioner shall establish a procedure to mark the catalytic converters of vehicles most likely to be targeted for theft with unique identification numbers using labels, engraving, theft deterrence paint, or other methods that permanently mark the catalytic converter without damaging its function.

(c) The commissioner shall work with law enforcement agencies, insurance companies, and scrap metal dealers to identify vehicles that are most frequently targeted for catalytic converter theft and to establish the most effective methods for marking catalytic converters.

(d) Materials purchased under this program may be distributed to dealers, as defined in section 168.002, subdivision 6, automobile repair shops and service centers, law enforcement agencies, and community organizations to arrange for the marking of the catalytic converters of vehicles most likely to be targeted for theft at no cost to the vehicle owners.

(e) The commissioner may prioritize distribution of materials to areas experiencing the highest rates of catalytic converter theft.

(f) The commissioner must make educational information resulting from the pilot program available to law enforcement agencies and scrap metal dealers and is encouraged to publicize the program to the general public.

(g) The commissioner shall include a report on the pilot project in the report required under section 65B.84, subdivision 2. The report must describe the progress, results, and any findings of the pilot project including the total number of catalytic converters marked under the program, and, to the extent known, whether any catalytic converters marked under the pilot project were stolen and the outcome of any criminal investigation into the thefts.