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HF 4288

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/26/2026 05:33 p.m.

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to human services; reenacting framework rates for family residential
services; amending Minnesota Statutes 2024, section 256B.4914, subdivisions 6,
19, by adding a subdivision; Minnesota Statutes 2025 Supplement, section
256B.4914, subdivision 5a.

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

Section 1.

Minnesota Statutes 2025 Supplement, section 256B.4914, subdivision 5a, is
amended to read:


Subd. 5a.

Base wage index; calculations.

The base wage index must be calculated as
follows:

(1) for supervisory staff, 100 percent of the median wage for community and social
services specialist (SOC code 21-1099), with the exception of the supervisor of positive
supports professional, positive supports analyst, and positive supports specialist, which is
100 percent of the median wage for clinical counseling and school psychologist (SOC code
19-3031);

(2) for registered nurse staff, 100 percent of the median wage for registered nurses (SOC
code 29-1141);

(3) for licensed practical nurse staff, 100 percent of the median wage for licensed practical
nurses (SOC code 29-2061);

(4)new text begin effective until the effective date of clause (5),new text end for residential asleep-overnight staff,
the minimum wage in Minnesota for large employers;

new text begin (5) effective January 1, 2027, or upon federal approval, whichever is later, for residential
asleep-overnight staff, the minimum wage for Minnesota for large employers, except for
asleep-overnight staff for family residential services, which is 36 percent of the minimum
wage in Minnesota for large employers;
new text end

deleted text begin (5)deleted text end new text begin (6)new text end for residential direct care staff, the sum of:

(i) 15 percent of the subtotal of 50 percent of the median wage for home health and
personal care aide (SOC code 31-1120); 30 percent of the median wage for nursing assistant
(SOC code 31-1131); and 20 percent of the median wage for social and human services
aide (SOC code 21-1093); and

(ii) 85 percent of the subtotal of 40 percent of the median wage for home health and
personal care aide (SOC code 31-1120); 20 percent of the median wage for nursing assistant
(SOC code 31-1131); 20 percent of the median wage for psychiatric technician (SOC code
29-2053); and 20 percent of the median wage for social and human services aide (SOC code
21-1093);

deleted text begin (6)deleted text end new text begin (7)new text end for adult day services staff, 70 percent of the median wage for nursing assistant
(SOC code 31-1131); and 30 percent of the median wage for home health and personal care
aide (SOC code 31-1120);

deleted text begin (7)deleted text end new text begin (8)new text end for day support services staff and prevocational services staff, 20 percent of the
median wage for nursing assistant (SOC code 31-1131); 20 percent of the median wage for
psychiatric technician (SOC code 29-2053); and 60 percent of the median wage for social
and human services aide (SOC code 21-1093);

deleted text begin (8)deleted text end new text begin (9)new text end for positive supports analyst staff, 100 percent of the median wage for substance
abuse, behavioral disorder, and mental health counselor (SOC code 21-1018);

deleted text begin (9)deleted text end new text begin (10)new text end for positive supports professional staff, 100 percent of the median wage for
clinical counseling and school psychologist (SOC code 19-3031);

deleted text begin (10)deleted text end new text begin (11)new text end for positive supports specialist staff, 100 percent of the median wage for
psychiatric technicians (SOC code 29-2053);

deleted text begin (11)deleted text end new text begin (12)new text end for individualized home supports with family training staff, 20 percent of the
median wage for nursing aide (SOC code 31-1131); 30 percent of the median wage for
community social service specialist (SOC code 21-1099); 40 percent of the median wage
for social and human services aide (SOC code 21-1093); and ten percent of the median
wage for psychiatric technician (SOC code 29-2053);

deleted text begin (12)deleted text end new text begin (13)new text end for individualized home supports with training services staff, 40 percent of the
median wage for community social service specialist (SOC code 21-1099); 50 percent of
the median wage for social and human services aide (SOC code 21-1093); and ten percent
of the median wage for psychiatric technician (SOC code 29-2053);

deleted text begin (13)deleted text end new text begin (14)new text end for employment support services staff, 50 percent of the median wage for
rehabilitation counselor (SOC code 21-1015); and 50 percent of the median wage for
community and social services specialist (SOC code 21-1099);

deleted text begin (14)deleted text end new text begin (15)new text end for employment exploration services staff, 50 percent of the median wage for
education, guidance, school, and vocational counselor (SOC code 21-1012); and 50 percent
of the median wage for community and social services specialist (SOC code 21-1099);

deleted text begin (15)deleted text end new text begin (16)new text end for employment development services staff, 50 percent of the median wage
for education, guidance, school, and vocational counselors (SOC code 21-1012); and 50
percent of the median wage for community and social services specialist (SOC code
21-1099);

deleted text begin (16)deleted text end new text begin (17)new text end for individualized home support without training staff, 50 percent of the median
wage for home health and personal care aide (SOC code 31-1120); and 50 percent of the
median wage for nursing assistant (SOC code 31-1131);

deleted text begin (17)deleted text end new text begin (18)new text end effective until the effective date of clauses deleted text begin (18) anddeleted text end (19)new text begin and (20)new text end , for night
supervision staff, 40 percent of the median wage for home health and personal care aide
(SOC code 31-1120); 20 percent of the median wage for nursing assistant (SOC code
31-1131); 20 percent of the median wage for psychiatric technician (SOC code 29-2053);
and 20 percent of the median wage for social and human services aide (SOC code 21-1093);

deleted text begin (18)deleted text end new text begin (19)new text end effective January 1, 2026, or upon federal approval, whichever is later, for
awake night supervision staff, 40 percent of the median wage for home health and personal
care aide (SOC code 31-1120); 20 percent of the median wage for nursing assistant (SOC
code 31-1131); 20 of percent the median wage for psychiatric technician (SOC code
29-2053); and 20 percent of the median wage for social and human services aid (SOC code
21-1093); and

deleted text begin (19)deleted text end new text begin (20)new text end effective January 1, 2026, or upon federal approval, whichever is later, for
asleep night supervision staff, the minimum wage in Minnesota for large employers.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2024, section 256B.4914, subdivision 6, is amended to read:


Subd. 6.

Residential support services; generally.

(a) For purposes of this section,
residential support services includes 24-hour customized living services, community
residential services, customized living services, and integrated community supports.new text begin This
paragraph expires on the effective date of paragraph (b).
new text end

new text begin (b) Effective January 1, 2027, or upon federal approval, whichever is later, for purposes
of this section, residential support services includes 24-hour customized living services,
community residential services, customized living services, integrated community supports,
and family residential services.
new text end

deleted text begin (b)deleted text end new text begin (c)new text end A unit of service for residential support services is a day. Any portion of any
calendar day, within allowable Medicaid rules, where an individual spends time in a
residential setting is billable as a day. The number of days authorized for all individuals
enrolling in residential support services must include every day that services start and end.

deleted text begin (c)deleted text end new text begin (d)new text end When the available shared staffing hours in a residential setting are insufficient
to meet the needs of an individual who enrolled in residential support services after January
1, 2014, then individual staffing hours shall be used.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2024, section 256B.4914, is amended by adding a subdivision
to read:


new text begin Subd. 6e. new text end

new text begin Family residential services; component values and calculation of payment
rates.
new text end

new text begin (a) Effective January 1, 2027, or upon federal approval, component values for family
residential services are:
new text end

new text begin (1) competitive workforce factor: 6.7 percent;
new text end

new text begin (2) supervisory span of control ratio: 11 percent;
new text end

new text begin (3) employee vacation, sick, and training allowance ratio: 8.71 percent;
new text end

new text begin (4) employee-related cost ratio: 23.6 percent;
new text end

new text begin (5) general administrative support ratio: 3.3 percent;
new text end

new text begin (6) program-related expense ratio: 1.3 percent; and
new text end

new text begin (7) absence factor: 1.7 percent.
new text end

new text begin (b) Payments for family residential services must be calculated as follows:
new text end

new text begin (1) determine the number of shared direct staffing and individual direct staffing hours
to meet a recipient's needs provided on site or through monitoring technology;
new text end

new text begin (2) determine the appropriate hourly staff wage rates derived by the commissioner as
provided in subdivisions 5 and 5a;
new text end

new text begin (3) except for subdivision 5a, clauses (1) to (4), multiply the result of clause (2) by the
product of one plus the competitive workforce factor;
new text end

new text begin (4) for a recipient requiring customization for deaf and hard-of-hearing language
accessibility under subdivision 12, add the customization rate provided in subdivision 12
to the result of clause (3);
new text end

new text begin (5) multiply the number of shared direct staffing and individual direct staffing hours
provided on site or through monitoring technology and nursing hours by the appropriate
staff wages;
new text end

new text begin (6) multiply the number of shared direct staffing and individual direct staffing hours
provided on site or through monitoring technology and nursing hours by the product of the
supervisory span of control ratio and the appropriate supervisory staff wage in subdivision
5a, clause (1);
new text end

new text begin (7) combine the results of clauses (5) and (6), excluding any shared direct staffing and
individual direct staffing hours provided through monitoring technology, and multiply the
result by one plus the employee vacation, sick, and training allowance ratio. This is defined
as the direct staffing cost;
new text end

new text begin (8) for employee-related expenses, multiply the direct staffing cost, excluding any shared
and individual direct staffing hours provided through monitoring technology, by one plus
the employee-related cost ratio;
new text end

new text begin (9) for client programming and supports, add $2,260.21 divided by 365. The
commissioner shall update the amount in this clause as specified in subdivision 5b;
new text end

new text begin (10) for transportation, if provided, add $1,742.62 divided by 365, or $3,111.81 divided
by 365 if customized for adapted transport, based on the resident with the highest assessed
need. The commissioner shall update the amounts in this clause as specified in subdivision
5b;
new text end

new text begin (11) subtotal clauses (8) to (10) and the direct staffing cost of any shared direct staffing
and individual direct staffing hours provided through monitoring technology that was
excluded in clause (8);
new text end

new text begin (12) sum the standard general administrative support ratio, the program-related expense
ratio, and the absence and utilization factor ratio;
new text end

new text begin (13) divide the result of clause (11) by one minus the result of clause (12). This is the
total payment rate; and
new text end

new text begin (14) adjust the result of clause (13) by a factor to be determined by the commissioner
to adjust for regional differences in the cost of providing services.
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. 4.

Minnesota Statutes 2024, section 256B.4914, subdivision 19, is amended to read:


Subd. 19.

Payments for family residential and life sharing services.

new text begin (a) new text end The
commissioner shall establish rates for family residential services and life sharing services
based on a person's assessed need, as described in the federally-approved waiver plans.
Rates for life sharing services must be ten percent higher than the corresponding family
residential services rate.new text begin This paragraph expires on the effective date of paragraph (b).
new text end

new text begin (b) Effective January 1, 2027, or upon federal approval, whichever is later, the
commissioner shall establish rates for life sharing services based on a person's assessed
need, as described in the federally approved waiver plans.
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