1.1 	A bill for an act
1.2 	relating to state government; modifying provisions relating to human services 
1.3 	health care, the Department of Human Services Office of Inspector General, 
1.4 	background studies, behavioral health services, uniform service standards, aging 
1.5 	and disability services, and assisted living facilities; establishing medical assistance 
1.6 	fraud as a crime; providing for criminal penalties; establishing working groups; 
1.7 	making technical corrections; requiring reports; appropriating money; amending 
1.8 	Minnesota Statutes 2024, sections 8.16, subdivision 1; 13A.03, by adding a 
1.9 	subdivision; 142B.01, subdivision 8; 144G.41, subdivision 1, by adding a 
1.10 	subdivision; 245.095, subdivisions 2, 5, by adding a subdivision; 245.735, 
1.11 	subdivision 6; 245A.02, subdivision 5a; 245A.07, subdivision 2a; 245A.10, by 
1.12 	adding a subdivision; 245A.65, subdivision 1a; 245C.02, subdivision 18; 245C.03, 
1.13 	subdivisions 1, 3a, 9, by adding subdivisions; 245C.04, subdivision 1; 245C.15, 
1.14 	subdivisions 2, 3, 4; 245C.24, subdivision 2; 245D.04, subdivision 3; 245D.081, 
1.15 	subdivision 3; 245D.10, subdivision 4; 245D.12; 245G.03, subdivision 1; 245I.011, 
1.16 	subdivisions 3, 5, by adding a subdivision; 245I.02, subdivisions 33, 39, by adding 
1.17 	subdivisions; 245I.03, subdivision 4, by adding a subdivision; 245I.06, subdivisions 
1.18 	1, 2; 245I.07; 245I.10, subdivisions 6, 8, by adding a subdivision; 256B.02, by 
1.19 	adding a subdivision; 256B.04, subdivisions 5, 10, by adding a subdivision; 
1.20 	256B.0623, subdivisions 1, 3, 12, by adding a subdivision; 256B.0624, subdivisions 
1.21 	1, 4, by adding a subdivision; 256B.0625, subdivision 17b, by adding a subdivision; 
1.22 	256B.064, subdivisions 1b, 1c, 1d, 2, 3, 4, 5, by adding subdivisions; 256B.0651, 
1.23 	subdivision 17; 256B.073, subdivisions 1, 2, 3, 5, by adding subdivisions; 
1.24 	256B.0761, subdivision 2; 256B.0911, subdivision 32; 256B.0943, subdivision 2; 
1.25 	256B.0949, subdivision 17, by adding a subdivision; 256B.27, subdivision 3; 
1.26 	256B.4905, subdivisions 11, 12; 256B.4912, by adding a subdivision; 256B.4914, 
1.27 	subdivision 6d, by adding a subdivision; 256B.492, by adding a subdivision; 
1.28 	256B.69, subdivision 5a, by adding a subdivision; 256B.85, subdivision 23a; 
1.29 	256S.20, by adding a subdivision; 256S.21, by adding a subdivision; 295.50, 
1.30 	subdivision 4; 609.52, subdivision 2; Minnesota Statutes 2025 Supplement, sections 
1.31 	15.013, by adding a subdivision; 15.471, subdivision 6; 245A.03, subdivision 2; 
1.32 	245A.04, subdivisions 1, 7; 245A.05; 245A.07, subdivision 3; 245A.10, 
1.33 	subdivisions 3, 4; 245A.142, subdivision 3; 245A.242, subdivision 2; 245C.02, 
1.34 	subdivision 15a; 245C.05, subdivision 5; 245C.07; 245C.13, subdivision 2; 
1.35 	245C.15, subdivision 4a; 245C.16, subdivision 1; 245C.22, subdivision 5; 245I.04, 
1.36 	subdivisions 5, 17; 254B.0503, subdivision 1; 256B.04, subdivision 21; 256B.051, 
1.37 	subdivision 6; 256B.0625, subdivisions 5m, 17; 256B.0659, subdivision 21; 
1.38 	256B.0701, subdivision 9; 256B.0759, subdivision 4; 256B.0911, subdivision 14; 
2.1 	256B.0943, subdivisions 3, 12; 256B.0949, subdivision 16; 256B.12; 256B.85, 
2.2 	subdivisions 12, 17a; 260E.03, subdivision 6; 260E.11, subdivision 1; 260E.14, 
2.3 	subdivision 1; 295.50, subdivision 9b; 609.902, subdivision 4; 626.5572, 
2.4 	subdivision 13; 628.26; Laws 2025, First Special Session chapter 9, article 4, 
2.5 	sections 2; 23; 38; 39; 40; 41; 42; 43; 44; 50; 51; proposing coding for new law 
2.6 	in Minnesota Statutes, chapters 245A; 245I; 256B; 609; repealing Minnesota 
2.7 	Statutes 2024, sections 245.735, subdivisions 1a, 2a, 3a, 3b, 3c, 3d, 3e, 3f, 3g, 3h, 
2.8 	4a, 4b, 4c, 4e, 7, 8; 245C.03, subdivision 7; 245I.20, subdivision 9; 245I.23, 
2.9 	subdivision 23; 256B.055, subdivision 14; 256B.0623, subdivisions 2, 4, 5, 6, 9; 
2.10 	256B.0624, subdivisions 2, 3, 4a, 5, 6, 6a, 6b, 7, 8, 9, 11; 256B.073, subdivision 
2.11 	4; 256B.0943, subdivisions 4, 5, 5a, 6, 7, 11; 609.466; Minnesota Statutes 2025 
2.12 	Supplement, sections 245.735, subdivisions 3, 4d; 245A.10, subdivision 3a; 
2.13 	256B.0701, subdivision 11; 256B.0943, subdivisions 1, 9; Minnesota Rules, part 
2.14 	9505.2165, subpart 4.
2.15 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.16 	ARTICLE 1
2.17 	HEALTH CARE

2.18 	Section 1. Minnesota Statutes 2025 Supplement, section 15.013, is amended by adding a 
2.19 	subdivision to read:
2.20 		Subd. 7.Exemption. Nothing in this section modifies, supersedes, limits, or expands 
2.21 	the authority of the commissioner of human services to impose sanctions under section 
2.22 	256B.064.

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

2.24 	Sec. 2. Minnesota Statutes 2024, section 142B.01, subdivision 8, is amended to read:
2.25 		Subd. 8.Controlling individual. (a) "Controlling individual" means an owner of a 
2.26 	program or service provider licensed under this chapter and the following individuals, if 
2.27 	applicable:
2.28 	(1) each officer of the organization, including the chief executive officer and chief 
2.29 	financial officer;
2.30 	(2) the individual designated as the authorized agent under section 142B.10, subdivision 
2.31 	1, paragraph (b);
2.32 	(3) the individual designated as the compliance officer under section 256B.04, subdivision 
2.33 	21, paragraph (g) 256B.044, subdivision 8, paragraph (b);
2.34 	(4) each managerial official whose responsibilities include the direction of the 
2.35 	management or policies of a program;
3.1 	(5) the individual designated as the primary provider of care for a special family child 
3.2 	care program under section 142B.41, subdivision 4, paragraph (d); and
3.3 	(6) the president and treasurer of the board of directors of a nonprofit corporation.
3.4 	(b) Controlling individual does not include:
3.5 	(1) a bank, savings bank, trust company, savings association, credit union, industrial 
3.6 	loan and thrift company, investment banking firm, or insurance company unless the entity 
3.7 	operates a program directly or through a subsidiary;
3.8 	(2) an individual who is a state or federal official, or state or federal employee, or a 
3.9 	member or employee of the governing body of a political subdivision of the state or federal 
3.10 	government that operates one or more programs, unless the individual is also an officer, 
3.11 	owner, or managerial official of the program; receives remuneration from the program; or 
3.12 	owns any of the beneficial interests not excluded in this subdivision;
3.13 	(3) an individual who owns less than five percent of the outstanding common shares of 
3.14 	a corporation:
3.15 	(i) whose securities are exempt under section 80A.45, clause (6); or
3.16 	(ii) whose transactions are exempt under section 80A.46, clause (2);
3.17 	(4) an individual who is a member of an organization exempt from taxation under section 
3.18 	290.05, unless the individual is also an officer, owner, or managerial official of the program 
3.19 	or owns any of the beneficial interests not excluded in this subdivision. This clause does 
3.20 	not exclude from the definition of controlling individual an organization that is exempt from 
3.21 	taxation; or
3.22 	(5) an employee stock ownership plan trust, or a participant or board member of an 
3.23 	employee stock ownership plan, unless the participant or board member is a controlling 
3.24 	individual according to paragraph (a).
3.25 	(c) For purposes of this subdivision, "managerial official" means an individual who has 
3.26 	the decision-making authority related to the operation of the program, and the responsibility 
3.27 	for the ongoing management of or direction of the policies, services, or employees of the 
3.28 	program. A site director who has no ownership interest in the program is not considered to 
3.29 	be a managerial official for purposes of this definition.

4.1 	Sec. 3. Minnesota Statutes 2024, section 245.095, is amended by adding a subdivision to 
4.2 	read:
4.3 		Subd. 7.Exemption. Nothing in this section modifies, supersedes, limits, or expands 
4.4 	the commissioner's authority to impose sanctions under section 256B.064.

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

4.6 	Sec. 4. Minnesota Statutes 2024, section 245A.02, subdivision 5a, is amended to read:
4.7 		Subd. 5a.Controlling individual. (a) "Controlling individual" means an owner of a 
4.8 	program or service provider licensed under this chapter and the following individuals, if 
4.9 	applicable:
4.10 	(1) each officer of the organization, including the chief executive officer and chief 
4.11 	financial officer;
4.12 	(2) the individual designated as the authorized agent under section 245A.04, subdivision 
4.13 	1, paragraph (b);
4.14 	(3) the individual designated as the compliance officer under section 256B.04, subdivision 
4.15 	21, paragraph (g) 256B.044, subdivision 8, paragraph (b);
4.16 	(4) each managerial official whose responsibilities include the direction of the 
4.17 	management or policies of a program; and
4.18 	(5) the president and treasurer of the board of directors of a nonprofit corporation.
4.19 	(b) Controlling individual does not include:
4.20 	(1) a bank, savings bank, trust company, savings association, credit union, industrial 
4.21 	loan and thrift company, investment banking firm, or insurance company unless the entity 
4.22 	operates a program directly or through a subsidiary;
4.23 	(2) an individual who is a state or federal official, or state or federal employee, or a 
4.24 	member or employee of the governing body of a political subdivision of the state or federal 
4.25 	government that operates one or more programs, unless the individual is also an officer, 
4.26 	owner, or managerial official of the program, receives remuneration from the program, or 
4.27 	owns any of the beneficial interests not excluded in this subdivision;
4.28 	(3) an individual who owns less than five percent of the outstanding common shares of 
4.29 	a corporation:
4.30 	(i) whose securities are exempt under section 80A.45, clause (6); or
4.31 	(ii) whose transactions are exempt under section 80A.46, clause (2);
5.1 	(4) an individual who is a member of an organization exempt from taxation under section 
5.2 	290.05, unless the individual is also an officer, owner, or managerial official of the program 
5.3 	or owns any of the beneficial interests not excluded in this subdivision. This clause does 
5.4 	not exclude from the definition of controlling individual an organization that is exempt from 
5.5 	taxation; or
5.6 	(5) an employee stock ownership plan trust, or a participant or board member of an 
5.7 	employee stock ownership plan, unless the participant or board member is a controlling 
5.8 	individual according to paragraph (a).
5.9 	(c) For purposes of this subdivision, "managerial official" means an individual who has 
5.10 	the decision-making authority related to the operation of the program, and the responsibility 
5.11 	for the ongoing management of or direction of the policies, services, or employees of the 
5.12 	program. A site director who has no ownership interest in the program is not considered to 
5.13 	be a managerial official for purposes of this definition.

5.14 	Sec. 5. Minnesota Statutes 2025 Supplement, section 245A.04, subdivision 1, is amended 
5.15 	to read:
5.16 		Subdivision 1.Application for licensure. (a) An individual, organization, or government 
5.17 	entity that is subject to licensure under section 245A.03 must apply for a license. The 
5.18 	application must be made on the forms and in the manner prescribed by the commissioner. 
5.19 	The commissioner shall provide the applicant with instruction in completing the application 
5.20 	and provide information about the rules and requirements of other state agencies that affect 
5.21 	the applicant. An applicant seeking licensure in Minnesota with headquarters outside of 
5.22 	Minnesota must have a program office located within 30 miles of the Minnesota border. 
5.23 	An applicant who intends to buy or otherwise acquire a program or services licensed under 
5.24 	this chapter that is owned by another license holder must apply for a license under this 
5.25 	chapter and comply with the application procedures in this section and section 245A.043.
5.26 	The commissioner shall act on the application within 90 working days after a complete 
5.27 	application and any required reports have been received from other state agencies or 
5.28 	departments, counties, municipalities, or other political subdivisions. The commissioner 
5.29 	shall not consider an application to be complete until the commissioner receives all of the 
5.30 	required information. If the applicant or a controlling individual is the subject of a pending 
5.31 	administrative, civil, or criminal investigation, the application is not complete until the 
5.32 	investigation has closed or the related legal proceedings are complete.
5.33 	When the commissioner receives an application for initial licensure that is incomplete 
5.34 	because the applicant failed to submit required documents or that is substantially deficient 
6.1 	because the documents submitted do not meet licensing requirements, the commissioner 
6.2 	shall provide the applicant written notice that the application is incomplete or substantially 
6.3 	deficient. In the written notice to the applicant the commissioner shall identify documents 
6.4 	that are missing or deficient and give the applicant 45 days to resubmit a second application 
6.5 	that is substantially complete. An applicant's failure to submit a substantially complete 
6.6 	application after receiving notice from the commissioner is a basis for license denial under 
6.7 	section 245A.043.
6.8 	(b) An application for licensure must identify all controlling individuals as defined in 
6.9 	section 245A.02, subdivision 5a, and must designate one individual to be the authorized 
6.10 	agent. The application must be signed by the authorized agent and must include the authorized 
6.11 	agent's first, middle, and last name; mailing address; and email address. By submitting an 
6.12 	application for licensure, the authorized agent consents to electronic communication with 
6.13 	the commissioner throughout the application process. The authorized agent must be 
6.14 	authorized to accept service on behalf of all of the controlling individuals. A government 
6.15 	entity that holds multiple licenses under this chapter may designate one authorized agent 
6.16 	for all licenses issued under this chapter or may designate a different authorized agent for 
6.17 	each license. Service on the authorized agent is service on all of the controlling individuals. 
6.18 	It is not a defense to any action arising under this chapter that service was not made on each 
6.19 	controlling individual. The designation of a controlling individual as the authorized agent 
6.20 	under this paragraph does not affect the legal responsibility of any other controlling individual 
6.21 	under this chapter.
6.22 	(c) An applicant or license holder must have a policy that prohibits license holders, 
6.23 	employees, subcontractors, and volunteers, when directly responsible for persons served 
6.24 	by the program, from abusing prescription medication or being in any manner under the 
6.25 	influence of a chemical that impairs the individual's ability to provide services or care. The 
6.26 	license holder must train employees, subcontractors, and volunteers about the program's 
6.27 	drug and alcohol policy before the employee, subcontractor, or volunteer has direct contact, 
6.28 	as defined in section 245C.02, subdivision 11, with a person served by the program.
6.29 	(d) An applicant and license holder must have a program grievance procedure that permits 
6.30 	persons served by the program and their authorized representatives to bring a grievance to 
6.31 	the highest level of authority in the program.
6.32 	(e) The commissioner may limit communication during the application process to the 
6.33 	authorized agent or the controlling individuals identified on the license application and for 
6.34 	whom a background study was initiated under chapter 245C. Upon implementation of the 
6.35 	provider licensing and reporting hub, applicants and license holders must use the hub in the 
7.1 	manner prescribed by the commissioner. The commissioner may require the applicant, 
7.2 	except for child foster care, to demonstrate competence in the applicable licensing 
7.3 	requirements by successfully completing a written examination. The commissioner may 
7.4 	develop a prescribed written examination format.
7.5 	(f) When an applicant is an individual, the applicant must provide:
7.6 	(1) the applicant's taxpayer identification numbers including the Social Security number 
7.7 	or Minnesota tax identification number, and federal employer identification number if the 
7.8 	applicant has employees;
7.9 	(2) at the request of the commissioner, a copy of the most recent filing with the secretary 
7.10 	of state that includes the complete business name, if any;
7.11 	(3) if doing business under a different name, the doing business as (DBA) name, as 
7.12 	registered with the secretary of state;
7.13 	(4) if applicable, the applicant's National Provider Identifier (NPI) number and Unique 
7.14 	Minnesota Provider Identifier (UMPI) number; and
7.15 	(5) at the request of the commissioner, the notarized signature of the applicant or 
7.16 	authorized agent.
7.17 	(g) When an applicant is an organization, the applicant must provide:
7.18 	(1) the applicant's taxpayer identification numbers including the Minnesota tax 
7.19 	identification number and federal employer identification number;
7.20 	(2) at the request of the commissioner, a copy of the most recent filing with the secretary 
7.21 	of state that includes the complete business name, and if doing business under a different 
7.22 	name, the doing business as (DBA) name, as registered with the secretary of state;
7.23 	(3) the first, middle, and last name, and address for all individuals who will be controlling 
7.24 	individuals, including all officers, owners, and managerial officials as defined in section 
7.25 	245A.02, subdivision 5a, and the date that the background study was initiated by the applicant 
7.26 	for each controlling individual;
7.27 	(4) if applicable, the applicant's NPI number and UMPI number;
7.28 	(5) the documents that created the organization and that determine the organization's 
7.29 	internal governance and the relations among the persons that own the organization, have 
7.30 	an interest in the organization, or are members of the organization, in each case as provided 
7.31 	or authorized by the organization's governing statute, which may include a partnership 
8.1 	agreement, bylaws, articles of organization, organizational chart, and operating agreement, 
8.2 	or comparable documents as provided in the organization's governing statute; and
8.3 	(6) the notarized signature of the applicant or authorized agent.
8.4 	(h) When the applicant is a government entity, the applicant must provide:
8.5 	(1) the name of the government agency, political subdivision, or other unit of government 
8.6 	seeking the license and the name of the program or services that will be licensed;
8.7 	(2) the applicant's taxpayer identification numbers including the Minnesota tax 
8.8 	identification number and federal employer identification number;
8.9 	(3) a letter signed by the manager, administrator, or other executive of the government 
8.10 	entity authorizing the submission of the license application; and
8.11 	(4) if applicable, the applicant's NPI number and UMPI number.
8.12 	(i) At the time of application for licensure or renewal of a license under this chapter, the 
8.13 	applicant or license holder must acknowledge on the form provided by the commissioner 
8.14 	if the applicant or license holder elects to receive any public funding reimbursement from 
8.15 	the commissioner for services provided under the license that:
8.16 	(1) the applicant's or license holder's compliance with the provider enrollment agreement 
8.17 	or registration requirements for receipt of public funding may be monitored by the 
8.18 	commissioner as part of a licensing investigation or licensing inspection; and
8.19 	(2) noncompliance with the provider enrollment agreement or registration requirements 
8.20 	for receipt of public funding that is identified through a licensing investigation or licensing 
8.21 	inspection, or noncompliance with a licensing requirement that is a basis of enrollment for 
8.22 	reimbursement for a service, may result in:
8.23 	(i) a correction order or a conditional license under section 245A.06, or sanctions under 
8.24 	section 245A.07;
8.25 	(ii) nonpayment of claims submitted by the license holder for public program 
8.26 	reimbursement;
8.27 	(iii) recovery of payments made for the service;
8.28 	(iv) disenrollment in the public payment program; or
8.29 	(v) other administrative, civil, or criminal penalties as provided by law.
8.30 	(j) An applicant or license holder who acknowledges under paragraph (i) that the applicant 
8.31 	or license holder elects to receive any publicly funded reimbursement from the commissioner 
9.1 	for services provided under the license that are designated by the commissioner as high-risk 
9.2 	under section 256B.044, subdivision 1, must provide an attestation with the notarized 
9.3 	signature of the applicant or authorized agent stating whether the applicant or authorized 
9.4 	agent received from an unaffiliated business or consultant any assistance preparing:
9.5 	(1) the licensure application;
9.6 	(2) the renewal application;
9.7 	(3) any documentation or written policies submitted with the licensure application;
9.8 	(4) any documentation or written policies submitted with the renewal application; or
9.9 	(5) any documentation or written policies maintained as a requirement of licensure or 
9.10 	enrollment as a medical assistance provider.

9.11 	Sec. 6. Minnesota Statutes 2025 Supplement, section 245A.04, subdivision 7, is amended 
9.12 	to read:
9.13 		Subd. 7.Grant of license; license extension. (a) If the commissioner determines that 
9.14 	the program complies with all applicable rules and laws, the commissioner shall issue a 
9.15 	license consistent with this section or, if applicable, a temporary change of ownership license 
9.16 	under section 245A.043. At minimum, the license shall state:
9.17 	(1) the name of the license holder;
9.18 	(2) the address of the program;
9.19 	(3) the effective date and expiration date of the license;
9.20 	(4) the type of license and the specific service the license holder is licensed to provide;
9.21 	(5) the maximum number and ages of persons that may receive services from the program; 
9.22 	and
9.23 	(6) any special conditions of licensure.
9.24 	(b) The commissioner may issue a license for a period not to exceed two years if:
9.25 	(1) the commissioner is unable to conduct the observation required by subdivision 4, 
9.26 	paragraph (a), clause (3), because the program is not yet operational;
9.27 	(2) certain records and documents are not available because persons are not yet receiving 
9.28 	services from the program; and
9.29 	(3) the applicant complies with applicable laws and rules in all other respects.
10.1 	(c) A decision by the commissioner to issue a license does not guarantee that any person 
10.2 	or persons will be placed or cared for in the licensed program.
10.3 	(d) Except as provided in paragraphs (i) and (j), the commissioner shall not issue a 
10.4 	license if the applicant, license holder, or an affiliated controlling individual has:
10.5 	(1) been disqualified and the disqualification was not set aside and no variance has been 
10.6 	granted;
10.7 	(2) been denied a license under this chapter or chapter 142B within the past two years;
10.8 	(3) had a license issued under this chapter or chapter 142B revoked within the past five 
10.9 	years; or
10.10 	(4) failed to submit the information required of an applicant under subdivision 1, 
10.11 	paragraph (f), (g), or (h), or (j), after being requested by the commissioner.
10.12 	When a license issued under this chapter or chapter 142B is revoked, the license holder 
10.13 	and each affiliated controlling individual with a revoked license may not hold any license 
10.14 	under chapter 245A for five years following the revocation, and other licenses held by the 
10.15 	applicant or license holder or licenses affiliated with each controlling individual shall also 
10.16 	be revoked.
10.17 	(e) Notwithstanding paragraph (d), the commissioner may elect not to revoke a license 
10.18 	affiliated with a license holder or controlling individual that had a license revoked within 
10.19 	the past five years if the commissioner determines that (1) the license holder or controlling 
10.20 	individual is operating the program in substantial compliance with applicable laws and rules 
10.21 	and (2) the program's continued operation is in the best interests of the community being 
10.22 	served.
10.23 	(f) Notwithstanding paragraph (d), the commissioner may issue a new license in response 
10.24 	to an application that is affiliated with an applicant, license holder, or controlling individual 
10.25 	that had an application denied within the past two years or a license revoked within the past 
10.26 	five years if the commissioner determines that (1) the applicant or controlling individual 
10.27 	has operated one or more programs in substantial compliance with applicable laws and rules 
10.28 	and (2) the program's operation would be in the best interests of the community to be served.
10.29 	(g) In determining whether a program's operation would be in the best interests of the 
10.30 	community to be served, the commissioner shall consider factors such as the number of 
10.31 	persons served, the availability of alternative services available in the surrounding 
10.32 	community, the management structure of the program, whether the program provides 
10.33 	culturally specific services, and other relevant factors.
11.1 	(h) The commissioner shall not issue or reissue a license under this chapter if an individual 
11.2 	living in the household where the services will be provided as specified under section 
11.3 	245C.03, subdivision 1, has been disqualified and the disqualification has not been set aside 
11.4 	and no variance has been granted.
11.5 	(i) Pursuant to section 245A.07, subdivision 1, paragraph (b), when a license issued 
11.6 	under this chapter has been suspended or revoked and the suspension or revocation is under 
11.7 	appeal, the program may continue to operate pending a final order from the commissioner. 
11.8 	If the license under suspension or revocation will expire before a final order is issued, a 
11.9 	temporary provisional license may be issued provided any applicable license fee is paid 
11.10 	before the temporary provisional license is issued.
11.11 	(j) Notwithstanding paragraph (i), when a revocation is based on the disqualification of 
11.12 	a controlling individual or license holder, and the controlling individual or license holder 
11.13 	is ordered under section 245C.17 to be immediately removed from direct contact with 
11.14 	persons receiving services or is ordered to be under continuous, direct supervision when 
11.15 	providing direct contact services, the program may continue to operate only if the program 
11.16 	complies with the order and submits documentation demonstrating compliance with the 
11.17 	order. If the disqualified individual fails to submit a timely request for reconsideration, or 
11.18 	if the disqualification is not set aside and no variance is granted, the order to immediately 
11.19 	remove the individual from direct contact or to be under continuous, direct supervision 
11.20 	remains in effect pending the outcome of a hearing and final order from the commissioner.
11.21 	(k) Unless otherwise specified by statute, all licenses issued under this chapter expire 
11.22 	at 12:01 a.m. on the day after the expiration date stated on the license. A license holder must 
11.23 	comply with the requirements in section 245A.10 and be reissued a new license to operate 
11.24 	the program or the program must not be operated after the expiration date. Adult foster care, 
11.25 	family adult day services, child foster residence setting, and community residential services 
11.26 	license holders must apply for and be granted a new license to operate the program or the 
11.27 	program must not be operated after the expiration date. Upon implementation of the provider 
11.28 	licensing and reporting hub, licenses may be issued each calendar year.
11.29 	(l) The commissioner shall not issue or reissue a license under this chapter if it has been 
11.30 	determined that a Tribal licensing authority has established jurisdiction to license the program 
11.31 	or service.
11.32 	(m) The commissioner of human services may coordinate and share data with the 
11.33 	commissioner of children, youth, and families to enforce this section.
12.1 	(n) For substance use disorder treatment programs, for the purposes of paragraph (a), 
12.2 	clause (5), the maximum number of persons who may receive services from the program 
12.3 	includes persons served at satellite locations.

12.4 	Sec. 7. Minnesota Statutes 2025 Supplement, section 245A.05, is amended to read:
12.5 	245A.05 DENIAL OF APPLICATION.
12.6 	(a) The commissioner may deny a license if an applicant or controlling individual:
12.7 	(1) fails to submit a substantially complete application after receiving notice from the 
12.8 	commissioner under section 245A.04, subdivision 1;
12.9 	(2) fails to comply with applicable laws or rules;
12.10 	(3) knowingly withholds relevant information from or gives false or misleading 
12.11 	information to the commissioner in connection with an application for a license or during 
12.12 	an investigation;
12.13 	(4) has a disqualification that has not been set aside under section 245C.22 and no 
12.14 	variance has been granted;
12.15 	(5) has an individual living in the household who received a background study under 
12.16 	section 245C.03, subdivision 1, paragraph (a), clause (2), who has a disqualification that 
12.17 	has not been set aside under section 245C.22, and no variance has been granted;
12.18 	(6) is associated with an individual who received a background study under section 
12.19 	245C.03, subdivision 1, paragraph (a), clause (6), who may have unsupervised access to 
12.20 	children or vulnerable adults, and who has a disqualification that has not been set aside 
12.21 	under section 245C.22, and no variance has been granted;
12.22 	(7) fails to comply with section 245A.04, subdivision 1, paragraph (f) or, (g), or (j);
12.23 	(8) fails to demonstrate competent knowledge as required by section 245A.04, subdivision 
12.24 	6;
12.25 	(9) has a history of noncompliance as a license holder or controlling individual with 
12.26 	applicable laws or rules, including but not limited to this chapter and chapters 142E and 
12.27 	245C;
12.28 	(10) is prohibited from holding a license according to section 245.095; or
12.29 	(11) is the subject of a pending administrative, civil, or criminal investigation.
12.30 	(b) An applicant whose application has been denied by the commissioner must be given 
12.31 	notice of the denial, which must state the reasons for the denial in plain language. Notice 
13.1 	must be given by certified mail, by personal service, or through the provider licensing and 
13.2 	reporting hub. The notice must state the reasons the application was denied and must inform 
13.3 	the applicant of the right to a contested case hearing under chapter 14 and Minnesota Rules, 
13.4 	parts 1400.8505 to 1400.8612. The applicant may appeal the denial by notifying the 
13.5 	commissioner in writing by certified mail, by personal service, or through the provider 
13.6 	licensing and reporting hub. If mailed, the appeal must be postmarked and sent to the 
13.7 	commissioner within 20 calendar days after the applicant received the notice of denial. If 
13.8 	an appeal request is made by personal service, it must be received by the commissioner 
13.9 	within 20 calendar days after the applicant received the notice of denial. If the order is issued 
13.10 	through the provider hub, the appeal must be received by the commissioner within 20 
13.11 	calendar days from the date the commissioner issued the order through the hub. Section 
13.12 	245A.08 applies to hearings held to appeal the commissioner's denial of an application.

13.13 	Sec. 8. Minnesota Statutes 2024, section 245D.081, subdivision 3, is amended to read:
13.14 		Subd. 3.Program management and oversight. (a) The license holder must designate 
13.15 	a managerial staff person or persons to provide program management and oversight of the 
13.16 	services provided by the license holder. The designated manager is responsible for the 
13.17 	following:
13.18 	(1) maintaining a current understanding of the licensing requirements sufficient to ensure 
13.19 	compliance throughout the program as identified in section 245A.04, subdivision 1, paragraph 
13.20 	(e), and when applicable, as identified in section 256B.04, subdivision 21, paragraph (g)
13.21 	256B.044, subdivision 8;
13.22 	(2) ensuring the duties of the designated coordinator are fulfilled according to the 
13.23 	requirements in subdivision 2;
13.24 	(3) ensuring the program implements corrective action identified as necessary by the 
13.25 	program following review of incident and emergency reports according to the requirements 
13.26 	in section 245D.11, subdivision 2, clause (7). An internal review of incident reports of 
13.27 	alleged or suspected maltreatment must be conducted according to the requirements in 
13.28 	section 245A.65, subdivision 1, paragraph (b);
13.29 	(4) evaluation of satisfaction of persons served by the program, the person's legal 
13.30 	representative, if any, and the case manager, with the service delivery and progress toward 
13.31 	accomplishing outcomes identified in sections 245D.07 and 245D.071, and ensuring and 
13.32 	protecting each person's rights as identified in section 245D.04;
14.1 	(5) ensuring staff competency requirements are met according to the requirements in 
14.2 	section 245D.09, subdivision 3, and ensuring staff orientation and training is provided 
14.3 	according to the requirements in section 245D.09, subdivisions 4, 4a, and 5;
14.4 	(6) ensuring corrective action is taken when ordered by the commissioner and that the 
14.5 	terms and conditions of the license and any variances are met; and
14.6 	(7) evaluating the information identified in clauses (1) to (6) to develop, document, and 
14.7 	implement ongoing program improvements.
14.8 	(b) The designated manager must be competent to perform the duties as required and 
14.9 	must minimally meet the education and training requirements identified in subdivision 2, 
14.10 	paragraph (b), and have a minimum of three years of supervisory level experience in a 
14.11 	program that provides care or education to vulnerable adults or children.

14.12 	Sec. 9. Minnesota Statutes 2024, section 256B.04, subdivision 5, is amended to read:
14.13 		Subd. 5.Annual report required. The state agency within 60 days after the close of 
14.14 	each fiscal year, shall prepare and print for the fiscal year a report that includes: a full 
14.15 	account of the operations and expenditure of funds under this chapter,; a full account of the 
14.16 	activities undertaken in accordance with subdivision 10,; adequate and complete statistics 
14.17 	divided by counties about all medical assistance provided in accordance with this chapter,; 
14.18 	a full account of all pre-enrollment, postenrollment, and unannounced site visits to providers 
14.19 	under section 256B.044, subdivision 5; and any other information it may deem advisable.

14.20 	Sec. 10. Minnesota Statutes 2025 Supplement, section 256B.04, subdivision 21, is amended 
14.21 	to read:
14.22 		Subd. 21.Provider enrollment. (a) The commissioner shall enroll providers and conduct 
14.23 	screening activities as required by Code of Federal Regulations, title 42, section 455, subpart 
14.24 	E, and sections 256B.044 to 256B.0448.
14.25 	A provider must enroll each provider-controlled location where direct services are 
14.26 	provided. The commissioner may deny a provider's incomplete application if a provider 
14.27 	fails to respond to the commissioner's request for additional information within 60 days of 
14.28 	the request. The commissioner must conduct a background study under chapter 245C, 
14.29 	including a review of databases in section 245C.08, subdivision 1, paragraph (a), clauses 
14.30 	(1) to (5), for a provider described in this paragraph. The background study requirement 
14.31 	may be satisfied if the commissioner conducted a fingerprint-based background study on 
15.1 	the provider that includes a review of databases in section 245C.08, subdivision 1, paragraph 
15.2 	(a), clauses (1) to (5).
15.3 	(b) The commissioner shall revalidate:
15.4 	(1) each provider under this subdivision at least once every five years;
15.5 	(2) each personal care assistance agency, CFSS provider-agency, and CFSS financial 
15.6 	management services provider under this subdivision at least once every three years;
15.7 	(3) each EIDBI agency under this subdivision at least once every three years; and
15.8 	(4) at the commissioner's discretion, any medical-assistance-only provider type the 
15.9 	commissioner deems "high-risk" under this subdivision.
15.10 	(c) The commissioner shall conduct revalidation as follows:
15.11 	(1) provide 30-day notice of the revalidation due date including instructions for 
15.12 	revalidation and a list of materials the provider must submit;
15.13 	(2) if a provider fails to submit all required materials by the due date, notify the provider 
15.14 	of the deficiency within 30 days after the due date and allow the provider an additional 30 
15.15 	days from the notification date to comply; and
15.16 	(3) if a provider fails to remedy a deficiency within the 30-day time period, give 60-day 
15.17 	notice of termination and immediately suspend the provider's ability to bill. The provider 
15.18 	does not have the right to appeal suspension of ability to bill.
15.19 	(d) If a provider fails to comply with any individual provider requirement or condition 
15.20 	of participation, the commissioner may suspend the provider's ability to bill until the provider 
15.21 	comes into compliance. The commissioner's decision to suspend the provider is not subject 
15.22 	to an administrative appeal.
15.23 	(e) Correspondence and notifications, including notifications of termination and other 
15.24 	actions, may be delivered electronically to a provider's MN-ITS mailbox. This paragraph 
15.25 	does not apply to correspondences and notifications related to background studies.
15.26 	(f) If the commissioner or the Centers for Medicare and Medicaid Services determines 
15.27 	that a provider is designated "high-risk," the commissioner may withhold payment from 
15.28 	providers within that category upon initial enrollment for a 90-day period. The withholding 
15.29 	for each provider must begin on the date of the first submission of a claim.
15.30 	(g) An enrolled provider that is also licensed by the commissioner under chapter 245A, 
15.31 	is licensed as a home care provider by the Department of Health under chapter 144A, or is 
15.32 	licensed as an assisted living facility under chapter 144G and has a home and 
16.1 	community-based services designation on the home care license under section 144A.484, 
16.2 	must designate an individual as the entity's compliance officer. The compliance officer 
16.3 	must:
16.4 	(1) develop policies and procedures to assure adherence to medical assistance laws and 
16.5 	regulations and to prevent inappropriate claims submissions;
16.6 	(2) train the employees of the provider entity, and any agents or subcontractors of the 
16.7 	provider entity including billers, on the policies and procedures under clause (1);
16.8 	(3) respond to allegations of improper conduct related to the provision or billing of 
16.9 	medical assistance services, and implement action to remediate any resulting problems;
16.10 	(4) use evaluation techniques to monitor compliance with medical assistance laws and 
16.11 	regulations;
16.12 	(5) promptly report to the commissioner any identified violations of medical assistance 
16.13 	laws or regulations; and
16.14 	(6) within 60 days of discovery by the provider of a medical assistance reimbursement 
16.15 	overpayment, report the overpayment to the commissioner and make arrangements with 
16.16 	the commissioner for the commissioner's recovery of the overpayment.
16.17 	The commissioner may require, as a condition of enrollment in medical assistance, that a 
16.18 	provider within a particular industry sector or category establish a compliance program that 
16.19 	contains the core elements established by the Centers for Medicare and Medicaid Services.
16.20 	(h) The commissioner may revoke the enrollment of an ordering or rendering provider 
16.21 	for a period of not more than one year, if the provider fails to maintain and, upon request 
16.22 	from the commissioner, provide access to documentation relating to written orders or requests 
16.23 	for payment for durable medical equipment, certifications for home health services, or 
16.24 	referrals for other items or services written or ordered by such provider, when the 
16.25 	commissioner has identified a pattern of a lack of documentation. A pattern means a failure 
16.26 	to maintain documentation or provide access to documentation on more than one occasion. 
16.27 	Nothing in this paragraph limits the authority of the commissioner to sanction a provider 
16.28 	under the provisions of section 256B.064.
16.29 	(i) The commissioner shall terminate or deny the enrollment of any individual or entity 
16.30 	if the individual or entity has been terminated from participation in Medicare or under the 
16.31 	Medicaid program or Children's Health Insurance Program of any other state. The 
16.32 	commissioner may exempt a rehabilitation agency from termination or denial that would 
16.33 	otherwise be required under this paragraph, if the agency:
17.1 	(1) is unable to retain Medicare certification and enrollment solely due to a lack of billing 
17.2 	to the Medicare program;
17.3 	(2) meets all other applicable Medicare certification requirements based on an on-site 
17.4 	review completed by the commissioner of health; and
17.5 	(3) serves primarily a pediatric population.
17.6 	(j) As a condition of enrollment in medical assistance, the commissioner shall require 
17.7 	that a provider designated "moderate" or "high-risk" by the Centers for Medicare and 
17.8 	Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid 
17.9 	Services, its agents, or its designated contractors and the state agency, its agents, or its 
17.10 	designated contractors to conduct unannounced on-site inspections of any provider location. 
17.11 	The commissioner shall publish in the Minnesota Health Care Program Provider Manual a 
17.12 	list of provider types designated "limited," "moderate," or "high-risk," based on the criteria 
17.13 	and standards used to designate Medicare providers in Code of Federal Regulations, title 
17.14 	42, section 424.518. The list and criteria are not subject to the requirements of chapter 14. 
17.15 	The commissioner's designations are not subject to administrative appeal.
17.16 	(k) As a condition of enrollment in medical assistance, the commissioner shall require 
17.17 	that a high-risk provider, or a person with a direct or indirect ownership interest in the 
17.18 	provider of five percent or higher, consent to criminal background checks, including 
17.19 	fingerprinting, when required to do so under state law or by a determination by the 
17.20 	commissioner or the Centers for Medicare and Medicaid Services that a provider is designated 
17.21 	high-risk for fraud, waste, or abuse.
17.22 	(l)(1) Upon initial enrollment, reenrollment, and notification of revalidation, all durable 
17.23 	medical equipment, prosthetics, orthotics, and supplies (DMEPOS) medical suppliers 
17.24 	meeting the durable medical equipment provider and supplier definition in clause (3), 
17.25 	operating in Minnesota and receiving Medicaid funds must purchase a surety bond that is 
17.26 	annually renewed and designates the Minnesota Department of Human Services as the 
17.27 	obligee, and must be submitted in a form approved by the commissioner. For purposes of 
17.28 	this clause, the following medical suppliers are not required to obtain a surety bond: a 
17.29 	federally qualified health center, a home health agency, the Indian Health Service, a 
17.30 	pharmacy, and a rural health clinic.
17.31 	(2) At the time of initial enrollment or reenrollment, durable medical equipment providers 
17.32 	and suppliers defined in clause (3) must purchase a surety bond of $50,000. If a revalidating 
17.33 	provider's Medicaid revenue in the previous calendar year is up to and including $300,000, 
17.34 	the provider agency must purchase a surety bond of $50,000. If a revalidating provider's 
18.1 	Medicaid revenue in the previous calendar year is over $300,000, the provider agency must 
18.2 	purchase a surety bond of $100,000. The surety bond must allow for recovery of costs and 
18.3 	fees in pursuing a claim on the bond. Any action to obtain monetary recovery or sanctions 
18.4 	from a surety bond must occur within six years from the date the debt is affirmed by a final 
18.5 	agency decision. An agency decision is final when the right to appeal the debt has been 
18.6 	exhausted or the time to appeal has expired under section 256B.064.
18.7 	(3) "Durable medical equipment provider or supplier" means a medical supplier that can 
18.8 	purchase medical equipment or supplies for sale or rental to the general public and is able 
18.9 	to perform or arrange for necessary repairs to and maintenance of equipment offered for 
18.10 	sale or rental.
18.11 	(m) The Department of Human Services may require a provider to purchase a surety 
18.12 	bond as a condition of initial enrollment, reenrollment, reinstatement, or continued enrollment 
18.13 	if: (1) the provider fails to demonstrate financial viability, (2) the department determines 
18.14 	there is significant evidence of or potential for fraud and abuse by the provider, or (3) the 
18.15 	provider or category of providers is designated high-risk pursuant to paragraph (f) and as 
18.16 	per Code of Federal Regulations, title 42, section 455.450. The surety bond must be in an 
18.17 	amount of $100,000 or ten percent of the provider's payments from Medicaid during the 
18.18 	immediately preceding 12 months, whichever is greater. The surety bond must name the 
18.19 	Department of Human Services as an obligee and must allow for recovery of costs and fees 
18.20 	in pursuing a claim on the bond. This paragraph does not apply if the provider currently 
18.21 	maintains a surety bond under the requirements in section 256B.051, 256B.0659, 256B.0701, 
18.22 	or 256B.85.

18.23 	Sec. 11. Minnesota Statutes 2024, section 256B.04, is amended by adding a subdivision 
18.24 	to read:
18.25 		Subd. 28.Medical assistance education program. (a) The commissioner must provide 
18.26 	information to all medical assistance enrollees on the following topics:
18.27 	(1) an enrollee's benefits, rights, and responsibilities under medical assistance;
18.28 	(2) how to appropriately access and receive services under medical assistance;
18.29 	(3) an enrollee's right to file complaints, grievances, and appeals;
18.30 	(4) general information about preventing fraud and abuse in the medical assistance 
18.31 	program; and
18.32 	(5) how to report concerns to the department and managed care organizations about 
18.33 	fraud and abuse in the medical assistance program.
19.1 	(b) The commissioner must ensure that the information provided under this subdivision:
19.2 	(1) is in plain language;
19.3 	(2) is culturally and linguistically appropriate; and
19.4 	(3) complies with applicable federal Medicaid requirements for communicating with 
19.5 	enrollees.
19.6 	(c) When an enrollee's use of medical assistance results in abusive or fraudulent billing, 
19.7 	the commissioner must notify the enrollee about the availability of the information under 
19.8 	this subdivision and may provide additional educational information targeted to the event 
19.9 	that resulted in abusive or fraudulent billing.
19.10 	(d) The commissioner may require entities participating in medical assistance, including 
19.11 	but not limited to managed care organizations, providers, lead agencies, and Tribal agencies, 
19.12 	to assist in delivering the information required under this subdivision.
19.13 	(e) For enrollees who receive case management services or have a support plan developed 
19.14 	under section 256B.0911, the information required under this subdivision must be tailored 
19.15 	to their service needs and may be delivered through the support planning process by the 
19.16 	lead agency or managed care organization, as appropriate.

19.17 	Sec. 12. [256B.044] PROVIDER ENROLLMENT.
19.18 		Subdivision 1.Designating categorical risk levels. (a) The commissioner must designate 
19.19 	provider types as "limited-risk," "moderate-risk," or "high-risk" based on the criteria and 
19.20 	standards used to designate Medicare providers in Code of Federal Regulations, title 42, 
19.21 	section 424.518. The commissioner must publish a list of provider types and designated 
19.22 	categorical risk levels in the Minnesota Health Care Program Provider Manual.
19.23 	(b) The list and criteria are not subject to the requirements under chapter 14 and section 
19.24 	14.386 does not apply.
19.25 	(c) The commissioner's designations are not subject to administrative appeal.
19.26 		Subd. 2.Required verifications and checks. The commissioner must perform the 
19.27 	following verifications and checks prior to making an enrollment determination and 
19.28 	periodically thereafter:
19.29 	(1) verify that the provider meets applicable federal and state requirements for the 
19.30 	provider type;
20.1 	(2) conduct license verifications, as applicable, including verification of current licensure 
20.2 	in Minnesota and in any other state in which the provider is or was previously licensed, in 
20.3 	accordance with Code of Federal Regulations, title 42, section 455.412;
20.4 	(3) conduct database checks on a pre-enrollment and postenrollment basis to ensure that 
20.5 	the provider continues to meet the enrollment criteria for the provider type, in accordance 
20.6 	with Code of Federal Regulations, title 42, section 455.436;
20.7 	(4) confirm that the provider and any disclosed owners, managing employees, or 
20.8 	controlling individuals are not excluded from participation in any state's Medicaid program, 
20.9 	Medicare, or any other federal health care program;
20.10 	(5) verify the provider's National Provider Identifier and, as applicable, Medicare 
20.11 	enrollment status;
20.12 	(6) verify the provider's tax identification number and business registration status;
20.13 	(7) verify the provider's ownership and control disclosures as required under federal 
20.14 	law; and
20.15 	(8) conduct any additional screenings, verifications, or reviews that are necessary to 
20.16 	protect the integrity of the medical assistance program or that are required under federal 
20.17 	law.
20.18 		Subd. 3.Required background studies. (a) The commissioner must conduct a 
20.19 	background study under chapter 245C for a provider applying for enrollment. The background 
20.20 	study must include a review of databases in section 245C.08, subdivision 1, paragraph (a), 
20.21 	clauses (1) to (5), and any other databases required under federal law.
20.22 	(b) The commissioner must conduct a background study under this subdivision for each 
20.23 	individual with an ownership or control interest in, or who is an officer, director, agent, 
20.24 	managing employee, or other person with operational or managerial control of, the provider.
20.25 	(c) Fingerprint-based studies are required when mandated by federal law or when a 
20.26 	provider is designated moderate-risk or high-risk under subdivision 1.
20.27 	(d) The commissioner may conduct background studies postenrollment as necessary.
20.28 	(e) A provider's failure to submit to the commissioner the information required for a 
20.29 	background study under this subdivision is grounds for denial or termination of enrollment 
20.30 	in medical assistance.
21.1 	(f) A provider's enrollment must be denied or terminated if a provider or individual 
21.2 	subject to a background study under this subdivision is disqualified under chapter 245C or 
21.3 	is excluded from participating in any federal health care programs.
21.4 		Subd. 4.Service location enrollment. (a) A provider must enroll each provider-controlled 
21.5 	location where direct services are provided. "Provider-controlled location" means a physical 
21.6 	site owned, leased, operated, or otherwise controlled by the provider.
21.7 	(b) Separate enrollment is not required for services provided in a recipient's home or 
21.8 	community setting, telehealth services delivered from an enrolled site, compliant mobile 
21.9 	services, or other federally permissible exemptions.
21.10 	(c) A provider's failure to enroll each provider-controlled location where direct services 
21.11 	are provided is grounds for sanctions under section 256B.064.
21.12 		Subd. 5.Site visits. (a) As a condition of enrollment in medical assistance, the 
21.13 	commissioner shall require that a provider permit the Centers for Medicare and Medicaid 
21.14 	Services (CMS), CMS's agents, or CMS's designated contractors and the Department of 
21.15 	Human Services (DHS), DHS's agents, or DHS's designated contractors to conduct 
21.16 	unannounced site visits of any of a provider's enrolled locations.
21.17 	(b) At a minimum, the commissioner must conduct the following site visits at each of 
21.18 	a provider's enrolled locations:
21.19 	(1) pre-enrollment site visits for providers designated as moderate-risk or high-risk under 
21.20 	subdivision 1;
21.21 	(2) postenrollment site visits for providers designated as moderate-risk or high-risk under 
21.22 	subdivision 1; and
21.23 	(3) unannounced site visits, as follows:
21.24 	(i) prior to payment of the provider's first claim after enrollment, when required under 
21.25 	federal law or due to program integrity concerns;
21.26 	(ii) within 12 months after the provider begins to bill claims; and
21.27 	(iii) prior to revalidation under section 256B.0441, subdivision 3.
21.28 	(c) The commissioner may conduct additional announced or unannounced site visits 
21.29 	when necessary to verify compliance with enrollment requirements or to protect program 
21.30 	integrity.
21.31 	(d) A provider's failure to permit a required site visit is grounds for denial, suspension, 
21.32 	or termination of enrollment and may result in denial of claims or recoupment of payments.
22.1 		Subd. 6.Surety bonds. (a) The commissioner must require a provider to purchase a 
22.2 	surety bond as a condition of initial enrollment, reenrollment, revalidation, reinstatement, 
22.3 	or continued enrollment. Upon new enrollment, or if the provider's medical assistance 
22.4 	revenue in the previous calendar year is less than or equal to $300,000, the provider must 
22.5 	purchase a surety bond of $50,000. If the provider's medical assistance revenue in the 
22.6 	previous calendar year is greater than $300,000, the provider must purchase a surety bond 
22.7 	of $100,000. The surety bond must name DHS as an obligee and must allow for recovery 
22.8 	of costs and fees in pursuing a claim on the bond.
22.9 	(b) This subdivision does not apply if the provider currently maintains a surety bond 
22.10 	under the requirements under section 256B.0659, 256B.0701, or 256B.85.
22.11 		Subd. 7.Financial capacity. As a condition of enrolling in medical assistance, the 
22.12 	commissioner must require, in a form and manner prescribed by the commissioner, that a 
22.13 	provider demonstrate sufficient financial capacity to operate and repay improper payments 
22.14 	for 30 days.
22.15 		Subd. 8.Compliance programs. (a) The commissioner may require, as a condition of 
22.16 	enrollment in medical assistance, that a provider in a particular industry, of a particular 
22.17 	provider type, or with a particular risk categorization under subdivision 1, establish and 
22.18 	maintain a compliance program consistent with federal program integrity guidance issued 
22.19 	by CMS or the United States Department of Health and Human Services Office of Inspector 
22.20 	General.
22.21 	(b) If an enrolled provider is required by the commissioner or by federal or state law to 
22.22 	designate an individual as the provider's compliance officer, the provider must appoint an 
22.23 	individual responsible for implementing and overseeing the compliance program.
22.24 	(c) At a minimum, the compliance program must include policies and procedures designed 
22.25 	to:
22.26 	(1) ensure adherence to federal and state laws and program requirements governing 
22.27 	medical assistance and prevent the submission of improper claims;
22.28 	(2) train employees, agents, contractors, and subcontractors, including billing personnel, 
22.29 	on applicable federal and state laws and program requirements;
22.30 	(3) establish procedures for receiving, investigating, and responding to allegations of 
22.31 	improper conduct and for implementing corrective actions;
22.32 	(4) use auditing, monitoring, or other evaluation techniques to assess ongoing compliance;
23.1 	(5) promptly report to the commissioner any credible evidence of violations of federal 
23.2 	and state laws or regulations governing medical assistance; and
23.3 	(6) report and return identified medical assistance overpayments within 60 days after 
23.4 	discovery or by the date any corresponding cost report is due, whichever is later, in 
23.5 	accordance with federal law.
23.6 		Subd. 9.Incomplete provider enrollment applications. The commissioner must deny 
23.7 	a provider's incomplete enrollment application if a provider fails to respond to the 
23.8 	commissioner's request for additional information within 60 days of the request.
23.9 		Subd. 10.Correspondence and notification. The commissioner must deliver 
23.10 	correspondence and notifications, including notifications of termination and other actions, 
23.11 	electronically to a provider's MN-ITS mailbox. This subdivision does not apply to 
23.12 	correspondences and notifications related to background studies.

23.13 	Sec. 13. [256B.0441] PROVIDER REVALIDATION.
23.14 		Subdivision 1.Requirement. The commissioner must revalidate each enrolled provider 
23.15 	according to this section.
23.16 		Subd. 2.Schedule. (a) The commissioner shall revalidate:
23.17 	(1) each provider at least once every five years;
23.18 	(2) each personal care assistance agency, community first services and supports (CFSS) 
23.19 	provider-agency, and CFSS financial management services provider at least once every 
23.20 	three years;
23.21 	(3) each EIDBI agency at least once every three years; and
23.22 	(4) each medical-assistance-only provider type the commissioner deems high-risk under 
23.23 	section 256B.044, subdivision 1, at least every three years.
23.24 	(b) The commissioner must conduct revalidation of a provider more frequently when 
23.25 	required under federal law or when necessary to protect program integrity.
23.26 		Subd. 3.Procedures. (a) The commissioner shall conduct revalidation as follows:
23.27 	(1) provide 30 days' notice to the provider of the provider's revalidation due date, 
23.28 	including instructions for revalidation, a list of materials the provider must submit, and a 
23.29 	notice about the unannounced site visit required under paragraph (b);
23.30 	(2) if a provider fails to submit all required materials or satisfy the requirements of 
23.31 	paragraph (b) by the due date, notify the provider of the deficiency within 14 days after the 
24.1 	due date and allow the provider an additional 14 days from the notification date to comply; 
24.2 	and
24.3 	(3) if a provider fails to remedy a deficiency within the additional 28-day time period, 
24.4 	give 15 days' notice of termination and immediately suspend the provider's ability to bill. 
24.5 	The commissioner's decision to suspend the provider's ability to bill is not subject to an 
24.6 	administrative appeal.
24.7 	(b) The commissioner must conduct unannounced site visits at each of a provider's 
24.8 	enrolled locations under section 256B.044, subdivision 4, no more than 30 days prior to the 
24.9 	provider's revalidation due date.
24.10 	(c) A provider must demonstrate financial capacity, as described under section 256B.044, 
24.11 	subdivision 7, as a requirement of revalidation under this subdivision.

24.12 	Sec. 14. [256B.0442] PROVIDER ENROLLMENT SUSPENSIONS AND 
24.13 	TERMINATIONS.
24.14 		Subdivision 1.Suspension of billing privileges. (a) If a provider fails to comply with 
24.15 	any individual provider requirement or condition of participation, the commissioner must 
24.16 	suspend the provider's ability to bill until the provider comes into compliance.
24.17 	(b) Notwithstanding any law to the contrary, the commissioner may immediately impose 
24.18 	a suspension under this subdivision when necessary to protect public funds or ensure program 
24.19 	integrity.
24.20 	(c) A suspension under this subdivision does not limit the authority of the commissioner 
24.21 	to issue any other sanction authorized under federal or state law.
24.22 	(d) The commissioner's decision to suspend a provider's ability to bill is not subject to 
24.23 	an administrative appeal.
24.24 		Subd. 2.Revocation for lack of documentation. (a) The commissioner may revoke 
24.25 	the enrollment of an ordering or rendering provider for a period of not more than one year 
24.26 	if the provider fails to maintain and, upon request from the commissioner, provide access 
24.27 	to documentation relating to written orders or requests for payment for durable medical 
24.28 	equipment, certifications for home health services, or referrals for other items or services 
24.29 	written or ordered by the provider when the commissioner has identified a pattern of a lack 
24.30 	of documentation. A pattern means a failure to maintain documentation or provide access 
24.31 	to documentation on more than one occasion.
25.1 	(b) Nothing in this subdivision limits the authority of the commissioner to sanction a 
25.2 	provider under the provisions of section 256B.064.
25.3 		Subd. 3.Mandatory denial or termination of enrollment. (a) The commissioner must 
25.4 	terminate or deny the enrollment of a provider when:
25.5 	(1) an individual with a five percent or greater direct or indirect ownership interest in 
25.6 	the provider does not submit timely and accurate information and cooperate with the 
25.7 	screening methods required under section 256B.044;
25.8 	(2) an individual with a five percent or greater direct or indirect ownership interest in 
25.9 	the provider has been convicted of a criminal offense related to the individual's involvement 
25.10 	in Medicare, Medicaid, or the Children's Health Insurance Program in the last ten years, 
25.11 	unless the commissioner determines that denial or termination of enrollment is not in the 
25.12 	best interests of the medical assistance program and the commissioner documents that 
25.13 	determination in writing;
25.14 	(3) the provider, or an individual with a five percent or greater direct or indirect ownership 
25.15 	interest in the provider, was terminated from participation in Medicare on or after January 
25.16 	1, 2011, or under a Medicaid program or Children's Health Insurance Program of any other 
25.17 	state, and is currently included in the termination database under Code of Federal Regulations, 
25.18 	title 42, section 455.417, except as provided in paragraph (b);
25.19 	(4) the provider, or an individual with a five percent or greater direct or indirect ownership 
25.20 	interest in the provider, fails to submit timely or accurate information, unless the 
25.21 	commissioner determines that termination or denial of enrollment is not in the best interests 
25.22 	of the medical assistance program and the commissioner documents that determination in 
25.23 	writing;
25.24 	(5) the provider, or an individual with a five percent or greater direct or indirect ownership 
25.25 	interest in the provider, fails to submit sets of fingerprints in a form and manner determined 
25.26 	by the commissioner within 30 days of a request from the Centers for Medicare and Medicaid 
25.27 	Services (CMS) or the commissioner, unless the commissioner determines that termination 
25.28 	or denial of enrollment is not in the best interests of the medical assistance program and the 
25.29 	commissioner documents that determination in writing;
25.30 	(6) the provider fails to permit access to provider locations for any site visits under 
25.31 	section 256B.044, subdivision 5, unless the commissioner determines that termination or 
25.32 	denial of enrollment is not in the best interests of the medical assistance program and the 
25.33 	commissioner documents that determination in writing; or
26.1 	(7) CMS or the commissioner determines that the provider has falsified any information 
26.2 	provided on the application or cannot verify the identity of any provider applicant.
26.3 	(b) The commissioner may exempt a rehabilitation agency from termination or denial 
26.4 	that would otherwise be required under paragraph (a), clause (3), if the agency:
26.5 	(1) is unable to retain Medicare certification and enrollment solely due to a lack of billing 
26.6 	to the Medicare program;
26.7 	(2) meets all other applicable Medicare certification requirements based on an on-site 
26.8 	review completed by the commissioner of health; and
26.9 	(3) serves primarily a pediatric population.

26.10 	Sec. 15. [256B.0443] PROVIDER PAYMENT WITHHOLDS.
26.11 	(a) If the commissioner or the Centers for Medicare and Medicaid Services designate a 
26.12 	provider type as high-risk under section 256B.044, subdivision 1, the commissioner may 
26.13 	withhold payment from providers within that category upon initial enrollment for a 90-day 
26.14 	period.
26.15 	(b) The withholding for each provider must begin on the date of the first submission of 
26.16 	a claim.

26.17 	Sec. 16. [256B.0444] ENROLLMENT MORATORIUM FOR HIGH-RISK 
26.18 	PROVIDERS.
26.19 		Subdivision 1.Provider enrollment moratorium. (a) If the commissioner or the Centers 
26.20 	for Medicare and Medicaid Services (CMS) designates a provider type as high-risk under 
26.21 	section 256B.044, subdivision 1, the commissioner may issue a statewide or regional 
26.22 	enrollment moratorium and stop accepting and processing applications from providers 
26.23 	within that category within 30 days of the date of the designation or upon federal approval 
26.24 	of the moratorium, whichever is later. A moratorium issued under this section is effective 
26.25 	for a period of up to 24 months from the date the moratorium is issued.
26.26 	(b) Before ending the moratorium under this section, the commissioner must revalidate 
26.27 	the enrollment of each provider within the affected category in accordance with the 
26.28 	revalidation procedures under section 256B.0441, subdivision 3.
26.29 		Subd. 2.Moratorium exceptions. The commissioner may grant exceptions to a 
26.30 	moratorium issued under subdivision 1 and must make publicly available the processes and 
26.31 	criteria the commissioner will use to grant exceptions. The commissioner may grant an 
27.1 	exception if a county or Tribal agency submits a request for an exception to the commissioner 
27.2 	and the commissioner determines that the agency's request sufficiently shows that enrollment 
27.3 	of the new provider:
27.4 	(1) is essential to meet regional needs;
27.5 	(2) addresses a specific population to be served; or
27.6 	(3) fulfills a need that cannot otherwise be met by existing enrolled providers.
27.7 		Subd. 3.Continued enrollment of new clients. Nothing in this section prohibits an 
27.8 	enrolled provider subject to a moratorium under this section from enrolling new clients or 
27.9 	beneficiaries during the period of the enrollment moratorium.
27.10 		Subd. 4.Notice. At least ten days prior to issuing an enrollment moratorium under this 
27.11 	section, the commissioner must notify enrolled providers within the affected category and 
27.12 	the chairs and ranking minority members of the legislative committees with jurisdiction 
27.13 	over health and human services about the actions the commissioner plans to take under this 
27.14 	section. The notice must:
27.15 	(1) include a list of provider types to which the moratorium applies;
27.16 	(2) provide a general explanation for the basis of the high-risk designation; and
27.17 	(3) identify the start dates and anticipated durations of the enrollment moratorium.
27.18 		Subd. 5.Report to legislature. Within 60 days of ending an enrollment moratorium 
27.19 	under this section, the commissioner must submit a report to the chairs and ranking minority 
27.20 	members of the legislative committees with jurisdiction over health and human services. 
27.21 	The report must include, at a minimum:
27.22 	(1) a summary of any sanctions imposed under section 256B.064 on any providers subject 
27.23 	to the moratorium; and
27.24 	(2) recommendations for modifying or terminating the provision of covered services 
27.25 	delivered by provider types subject to the moratorium.

27.26 	Sec. 17. [256B.0445] ADDITIONAL PROVIDER ENROLLMENT REQUIREMENTS 
27.27 	FOR SPECIFIC PROVIDER TYPES.
27.28 		Subdivision 1.Durable medical equipment provider or supplier. (a) For the purposes 
27.29 	of this subdivision, "durable medical equipment provider or supplier" means a medical 
27.30 	supplier that can purchase medical equipment or supplies for sale or rent to the general 
28.1 	public and is able to perform or arrange for necessary repairs to and maintenance of 
28.2 	equipment offered for sale or rent.
28.3 	(b) Upon initial enrollment, reenrollment, and notification of revalidation, all durable 
28.4 	medical equipment, prosthetics, orthotics, and supplies medical suppliers meeting the durable 
28.5 	medical equipment provider or supplier definition in paragraph (a), operating in Minnesota, 
28.6 	and receiving medical assistance money must purchase a surety bond that is annually 
28.7 	renewed, designates the state agency as the obligee, and is submitted in a form approved 
28.8 	by the commissioner. For purposes of this paragraph, the following medical suppliers are 
28.9 	not required to obtain a surety bond: a federally qualified health center, a home health 
28.10 	agency, the Indian Health Service, a pharmacy, and a rural health clinic.
28.11 	(c) At the time of initial enrollment or reenrollment, durable medical equipment providers 
28.12 	or suppliers as defined in paragraph (a) must purchase a surety bond of $50,000. If a 
28.13 	revalidating provider's medical assistance revenue in the previous calendar year is up to and 
28.14 	including $300,000, the provider agency must purchase a surety bond of $50,000. If a 
28.15 	revalidating provider's medical assistance revenue in the previous calendar year is over 
28.16 	$300,000, the provider agency must purchase a surety bond of $100,000. The surety bond 
28.17 	must allow for recovery of costs and fees in pursuing a claim on the bond. Any action to 
28.18 	obtain monetary recovery or sanctions from a surety bond must occur within six years from 
28.19 	the date the debt is affirmed by a final agency decision. An agency decision is final when 
28.20 	the right to appeal the debt has been exhausted or the time to appeal has expired under 
28.21 	section 256B.064.
28.22 		Subd. 2.Providers licensed by the commissioner of human services. An enrolled 
28.23 	provider that is licensed by the commissioner under chapter 245A must designate an 
28.24 	individual as the licensee's compliance officer under section 256B.044, subdivision 8, 
28.25 	paragraph (b).
28.26 		Subd. 3.Providers licensed by the commissioner of health. An enrolled provider that 
28.27 	is licensed by the commissioner of health as a home care provider under chapter 144A with 
28.28 	a home and community-based services designation under section 144A.484 on the home 
28.29 	care license, or as an assisted living facility under chapter 144G, must designate an individual 
28.30 	as the licensee's compliance officer under section 256B.044, subdivision 8, paragraph (b).

28.31 	Sec. 18. [256B.0446] ADDITIONAL PROVIDER ENROLLMENT TRAINING 
28.32 	REQUIREMENTS FOR HIGH-RISK PROVIDERS.
28.33 		Subdivision 1.Applicability. This section applies to any agency that provides a service 
28.34 	designated by the commissioner as high-risk under section 256B.044, subdivision 1. For 
29.1 	purposes of this section, "agency" means the legal entity that is applying to be or is enrolled 
29.2 	with Minnesota health care programs as a medical assistance provider according to Minnesota 
29.3 	Rules, part 9505.0195.
29.4 		Subd. 2.Mandatory compliance training. (a) Effective January 1, 2027, before applying 
29.5 	for enrollment or reenrollment as a medical assistance provider, an agency applying to 
29.6 	provide services designated by the commissioner as high-risk under section 256B.044, 
29.7 	subdivision 1, must require all owners of the agency who are active in the day-to-day 
29.8 	management and operations of the agency and all managerial and supervisory employees 
29.9 	to complete compliance training. All individuals required to complete training under this 
29.10 	subdivision must repeat the training prior to the agency's revalidation as a medical assistance 
29.11 	provider.
29.12 	(b) New owners active in day-to-day management and operations of the agency and new 
29.13 	managerial and supervisory employees of the agency must complete compliance training 
29.14 	under this subdivision within 30 calendar days of becoming an owner of or beginning 
29.15 	employment with the agency and prior to conducting any management or operations activities 
29.16 	for the agency. If an individual moves to another agency providing the same service and 
29.17 	serves in a similar ownership or employment capacity, the individual is not required to 
29.18 	repeat the training required under this subdivision. If the individual does not repeat the 
29.19 	compliance training, the individual must provide documentation to the agency that proves 
29.20 	that the individual completed the compliance training within the provider revalidation 
29.21 	schedule for the relevant provider type as determined by the commissioner under section 
29.22 	256B.0441, subdivisions 2 and 3.
29.23 	(c) The commissioner must determine the format and content of the compliance training. 
29.24 	The training must include the following topics, adapted as necessary for each provider type 
29.25 	subject to the requirements of this subdivision:
29.26 	(1) state and federal program billing, documentation, and service delivery requirements;
29.27 	(2) enrollment requirements;
29.28 	(3) provider program integrity, including fraud prevention, detection, and penalties;
29.29 	(4) fair labor standards;
29.30 	(5) workplace safety requirements; and
29.31 	(6) recent changes in service requirements.

30.1 	Sec. 19. [256B.0447] ENHANCED PREPAYMENT REVIEW.
30.2 		Subdivision 1.Purpose and authority. The commissioner must conduct enhanced 
30.3 	prepayment review of submitted fee-for-service medical assistance claims to ensure 
30.4 	compliance with state and federal law and prevent improper payments before payment.
30.5 		Subd. 2.Providers, services, and claims subject to review. (a) The commissioner must 
30.6 	conduct enhanced prepayment review under this section when:
30.7 	(1) the commissioner or the Centers for Medicare and Medicaid Services designates a 
30.8 	provider type as high-risk under section 256B.044, subdivision 1, for fee-for-service claims 
30.9 	submitted by providers within that category;
30.10 	(2) the commissioner or the Centers for Medicare and Medicaid Services designates a 
30.11 	covered service as high-risk, for fee-for-service claims submitted for that service by any 
30.12 	provider, except the Indian Health Service; or
30.13 	(3) a new provider enrolls in medical assistance.
30.14 	(b) The commissioner may place any other provider, provider type, covered service, or 
30.15 	category of fee-for-service claims under enhanced prepayment review when the commissioner 
30.16 	determines there is a risk of improper payment.
30.17 	(c) Nothing in this section prevents the commissioner from establishing enhanced 
30.18 	prepayment review in other circumstances if required by the Centers for Medicare and 
30.19 	Medicaid Services.
30.20 		Subd. 3.Review requirements. (a) The commissioner must implement an enhanced 
30.21 	prepayment review established under subdivision 2, paragraph (a), within 15 days after the 
30.22 	date of the high-risk designation, effective for a period of up to 24 months from the date 
30.23 	the review is implemented.
30.24 	(b) Before ending enhanced prepayment review under subdivision 2, paragraph (a), 
30.25 	clause (1) or (2), the commissioner must review the fee-for-service claims submitted during 
30.26 	the period the provider type or covered service was subject to the enhanced prepayment 
30.27 	review and determine whether continuation of the review is warranted.
30.28 		Subd. 4.Notice. (a) Except as provided in paragraph (b), the commissioner must provide 
30.29 	written notice to a provider placed under enhanced prepayment review at least 15 days 
30.30 	before the review is implemented. The notice must include:
30.31 	(1) the basis for the review;
30.32 	(2) the effective date of the review; and
31.1 	(3) the standards the commissioner will use to determine when the provider, service, or 
31.2 	claims will no longer be subject to enhanced prepayment review.
31.3 	(b) The commissioner may delay, limit, or withhold notice to a provider if providing 
31.4 	notice would compromise program integrity, prejudice an audit or investigation, or conflict 
31.5 	with federal law or federal guidance.
31.6 	(c) At least 15 days before implementing an enhanced prepayment review, the 
31.7 	commissioner must notify the chairs and ranking minority members of the legislative 
31.8 	committees with jurisdiction over health and human services policy and finance about the 
31.9 	enhanced prepayment review the commissioner plans to implement under this section. The 
31.10 	notice must include:
31.11 	(1) the basis for the review;
31.12 	(2) the effective date of the review;
31.13 	(3) the providers, provider types, covered services, or categories of claims to which 
31.14 	enhanced prepayment review applies;
31.15 	(4) the anticipated duration of the enhanced prepayment review; and
31.16 	(5) the standards the commissioner will use to determine when the provider, service, or 
31.17 	claims will no longer be subject to enhanced prepayment review.
31.18 		Subd. 5.Continued enrollment of new clients. Nothing in this section prohibits an 
31.19 	enrolled provider that is subject to enhanced prepayment review from enrolling new clients 
31.20 	or beneficiaries during the period of review unless otherwise prohibited by law or by a 
31.21 	separate action of the commissioner.
31.22 		Subd. 6.Timely claims processing. The commissioner must administer enhanced 
31.23 	prepayment review in a manner consistent with Code of Federal Regulations, title 42, section 
31.24 	447.45.
31.25 		Subd. 7.Duration and termination. (a) Enhanced prepayment review may continue 
31.26 	for up to 24 consecutive months unless:
31.27 	(1) the commissioner determines that earlier termination is appropriate based on sustained 
31.28 	compliance; or
31.29 	(2) the commissioner has initiated sanction, suspension, termination, or other enforcement 
31.30 	action arising out of the review and that action remains pending on appeal, in which case 
31.31 	the enhanced prepayment review may continue until final disposition of the enforcement 
31.32 	action.
32.1 	(b) Claims for services furnished during the period of enhanced prepayment review 
32.2 	remain subject to review before payment regardless of when the claims are submitted.
32.3 		Subd. 8.Relationship to other actions. Enhanced prepayment review under this section 
32.4 	does not preclude the commissioner from conducting a preliminary investigation, full 
32.5 	investigation, payment suspension, postpayment review, audit, overpayment recovery, 
32.6 	sanction, or referral to law enforcement under this chapter or under applicable federal law.
32.7 		Subd. 9.Report to legislature. (a) Within 60 days after ending an enhanced prepayment 
32.8 	review under this section, the commissioner must submit a report to the chairs and ranking 
32.9 	minority members of the legislative committees with jurisdiction over health and human 
32.10 	services policy and finance. The report must include, at a minimum:
32.11 	(1) the providers, provider types, covered services, or categories of claims subject to 
32.12 	review;
32.13 	(2) the duration of the review;
32.14 	(3) aggregate outcomes, including claim denials, payments delayed, and referrals for 
32.15 	further action; and
32.16 	(4) recommendations for statutory, administrative, or systems changes.
32.17 	(b) Notwithstanding section 256.01, subdivision 42, this subdivision does not expire.

32.18 	EFFECTIVE DATE. This section is effective January 1, 2027.

32.19 	Sec. 20. [256B.0448] POSTPAYMENT REVIEW.
32.20 		Subdivision 1.Purpose and authority. The commissioner may conduct postpayment 
32.21 	review of claims, encounters, cost reports, rate submissions, and other billings submitted 
32.22 	for payment or reimbursement under this chapter to identify improper payments and recover 
32.23 	payments made in violation of state or federal law or program requirements.
32.24 		Subd. 2.Scope of review. The commissioner may conduct postpayment review on a 
32.25 	claim-by-claim basis or through other review methods authorized by state or federal law.
32.26 		Subd. 3.Provider obligations. (a) A provider subject to postpayment review must 
32.27 	maintain documentation necessary to support claims, encounters, cost reports, rate 
32.28 	submissions, other billings submitted for payment or reimbursement under this chapter, and 
32.29 	compliance with program requirements.
32.30 	(b) The commissioner may require a provider to submit records or supporting 
32.31 	documentation relevant to a postpayment review.
33.1 	(c) A provider's failure to provide requested records or supporting documentation to the 
33.2 	commissioner according to the timeline specified by the commissioner may result in recovery 
33.3 	of payments or sanctions under section 256B.064 and other applicable laws.
33.4 		Subd. 4.Recovery and sanctions. If postpayment review identifies an overpayment or 
33.5 	other noncompliance with medical assistance payment requirements, the commissioner may 
33.6 	recover payments and impose sanctions in accordance with section 256B.064 and other 
33.7 	applicable laws.
33.8 		Subd. 5.Relationship to other actions. Conducting postpayment review of a provider 
33.9 	under this section does not preclude the commissioner from conducting a preliminary 
33.10 	investigation, full investigation, enhanced prepayment review, payment suspension, audit, 
33.11 	overpayment recovery, sanction, or referral to law enforcement under this chapter or 
33.12 	applicable federal law.

33.13 	EFFECTIVE DATE. This section is effective January 1, 2027.

33.14 	Sec. 21. [256B.045] RECIPIENT PROTECTIONS AND CONTINUITY OF CARE 
33.15 	WHEN A PROVIDER IS SUBJECT TO A SERIOUS OPERATIONAL EVENT.
33.16 		Subdivision 1.Definitions. (a) For purposes of sections 256B.045 to 256B.047, the 
33.17 	following terms have the meanings given.
33.18 	(b) "Complex transition" means a provider termination, suspension, revocation, or closure 
33.19 	event that, without structured transition measures, would likely result in avoidable 
33.20 	hospitalization, institutionalization, serious clinical deterioration, or loss of housing or 
33.21 	placement for a recipient.
33.22 	(c) "Direct recipient care costs" means costs necessary to furnish covered services, 
33.23 	excluding owner distributions, dividends, related party profit, and other noncare financial 
33.24 	transfers.
33.25 	(d) "Lead agency" means a county, Tribe, or managed care organization.
33.26 	(e) "Recipient" means an enrollee, participant, resident, or other individual receiving 
33.27 	services under medical assistance.
33.28 	(f) "Serious operational event" means sanctions or termination actions affecting provider 
33.29 	participation or payments under section 256B.064, licensure loss or revocation, insolvency, 
33.30 	receivership, bankruptcy, abandonment, or inability of a provider to safely operate.
34.1 		Subd. 2.Provider duties. If a medical assistance service provider determines it is unable 
34.2 	to continue to provide services to a recipient due to a serious operational event, the provider 
34.3 	must:
34.4 	(1) when practicable, notify each recipient; each recipient's responsible party, if 
34.5 	applicable; the lead agency; and the commissioner 30 days before terminating services to 
34.6 	each recipient;
34.7 	(2) assist the commissioner and lead agency in supporting each recipient in transitioning 
34.8 	to another provider of each recipient's choice; and
34.9 	(3) when practicable, provide each recipient with a copy of the relevant recipient bill of 
34.10 	rights or recipient protections, if applicable, at least 30 days before terminating services.
34.11 		Subd. 3.Commissioner's duties. (a) When a provider is subject to a serious operational 
34.12 	event, the commissioner or the commissioner's designee must:
34.13 	(1) inform the appropriate ombudsperson's office, if applicable, and the lead agency for 
34.14 	each recipient currently receiving services; and
34.15 	(2) directly notify each recipient who receives services from the provider in order to 
34.16 	protect recipient welfare.
34.17 	(b) When a medical assistance service provider provides notice to the commissioner 
34.18 	under subdivision 2 that it is unable to continue to provide services to a recipient due to a 
34.19 	serious operational event, the commissioner must assist the provider and the lead agency 
34.20 	in supporting the recipient in transitioning to another provider of the recipient's choice.
34.21 	(c) The commissioner must ensure each recipient receives continuity of medically 
34.22 	necessary services and supports through a safe and orderly transition to appropriate receiving 
34.23 	providers when a serious operational event is designated as a complex transition under 
34.24 	section 256B.046.
34.25 		Subd. 4.Lead agency duties. When a provider is subject to a serious operational event, 
34.26 	a lead agency must contact affected service recipients to ensure that each recipient:
34.27 	(1) is continuing to receive needed services; and
34.28 	(2) has been given free choice of provider if the recipient transfers to another service 
34.29 	provider.

35.1 	Sec. 22. [256B.046] COMPLEX TRANSITIONS.
35.2 		Subdivision 1.Complex transition designation. (a) The commissioner must designate 
35.3 	a serious operational event as a complex transition when:
35.4 	(1) a recipient is receiving long-term services and supports, including home and 
35.5 	community-based services;
35.6 	(2) a recipient is receiving behavioral health or substance use disorder treatment where 
35.7 	abrupt interruption of treatment creates a material risk;
35.8 	(3) a recipient is medically fragile and depends on life-sustaining treatment;
35.9 	(4) there is limited regional capacity, including limited culturally or linguistically 
35.10 	appropriate care; or
35.11 	(5) a recipient's placement stability is dependent upon continued service delivery.
35.12 	(b) The commissioner may establish objective thresholds to create a presumption of 
35.13 	complex transition based on the number of recipients affected by a serious operational event, 
35.14 	recipient acuity, service type, or unresolved discharge or placement barriers.
35.15 		Subd. 2.Complex transition operations plan. The commissioner must develop and 
35.16 	implement a written complex transition operations plan for each complex transition. The 
35.17 	plan must include:
35.18 	(1) recipient identification and acuity level;
35.19 	(2) stabilization actions to prevent gaps in care for high-risk recipients;
35.20 	(3) medical record, medication, and treatment plan continuity procedures;
35.21 	(4) receiving provider identification and capacity information;
35.22 	(5) transition timelines, transportation, and handoff procedures;
35.23 	(6) the communication plan for each recipient, the recipient's family, and the recipient's 
35.24 	guardian, if applicable, including language access; and
35.25 	(7) coordination with lead agencies, case managers, and ombudsperson offices, when 
35.26 	applicable.
35.27 		Subd. 3.Complex transition team. The commissioner may convene a complex transition 
35.28 	team that includes department staff, lead agencies, and other professionals, as necessary, 
35.29 	to ensure the safe transition of recipients from the provider that is unable to continue to 
35.30 	provide services to another provider.
36.1 		Subd. 4.Complex transition; legislative notice. The commissioner must notify the 
36.2 	chairs and ranking minority members of the legislative committees with jurisdiction over 
36.3 	human services policy and finance within ten days of designating a complex transition and 
36.4 	must provide a report within 90 days of recipient stabilization to identify systemic gaps and 
36.5 	make recommendations for systemic improvements.

36.6 	Sec. 23. [256B.047] CONTINUITY PERIOD AND TRANSITION PAYMENTS FOR 
36.7 	COMPLEX TRANSITIONS.
36.8 		Subdivision 1.Limited continuity period. A provider subject to a serious operational 
36.9 	event that is designated as a complex transition under section 256B.046 may continue to 
36.10 	provide services to high-risk recipients receiving long-term services and supports or hospice 
36.11 	care for up to 180 days after the date the serious operational event was designated a complex 
36.12 	transition. The continuity period under this subdivision does not reinstate provider 
36.13 	participation in medical assistance and does not limit the commissioner's sanction, exclusion, 
36.14 	recovery, licensing enforcement, or referral authority.
36.15 		Subd. 2.Good cause payment safeguards. When payment withholds or reductions 
36.16 	occur under section 256B.064, the commissioner may find good cause not to suspend 
36.17 	payments under Code of Federal Regulations, title 42, section 455.23(e) or (f), in order to 
36.18 	provide for continuity of care during complex transitions.
36.19 		Subd. 3.Transition payments. (a) If the commissioner does not suspend payments to 
36.20 	a provider sanctioned under section 256B.064 due to a determination of good cause, payments 
36.21 	to the provider must be limited to direct recipient care costs. A provider receiving payments 
36.22 	under this section must submit to independent financial monitoring and a prohibition on 
36.23 	financial distributions to owners.
36.24 	(b) The commissioner shall prioritize payment to alternative enrolled medical assistance 
36.25 	providers that assume responsibility for service provision, court-appointed receivers or 
36.26 	interim managers providing services, or substitute providers operating on site under an 
36.27 	approved complex transition operations plan.
36.28 	(c) When permitted by state and federal law, the amount of allowable transition payments 
36.29 	paid to a provider under this section is subtracted from the debts the provider owes to the 
36.30 	state.
36.31 	(d) Nothing in this section requires payments that are prohibited by federal law.

37.1 	Sec. 24. Minnesota Statutes 2025 Supplement, section 256B.051, subdivision 6, is amended 
37.2 	to read:
37.3 		Subd. 6.Agency qualifications and duties. An agency is eligible for reimbursement 
37.4 	under this section only if the agency:
37.5 	(1) is confirmed by the commissioner as an eligible provider after a pre-enrollment risk 
37.6 	assessment under subdivision 6a;
37.7 	(2) is enrolled as a medical assistance Minnesota health care program provider and meets 
37.8 	all applicable provider standards and requirements;
37.9 	(3) demonstrates compliance with federal and state laws and policies for housing 
37.10 	stabilization services as determined by the commissioner;
37.11 	(4) complies with background study requirements under chapter 245C and maintains 
37.12 	documentation of background study requests and results;
37.13 	(5) provides at the time of enrollment, reenrollment, and revalidation in a format 
37.14 	determined by the commissioner, proof of surety bond coverage for each business location 
37.15 	providing services. Upon new enrollment, or if the provider's medical assistance revenue 
37.16 	in the previous calendar year is $300,000 or less, the provider agency must purchase a surety 
37.17 	bond of $50,000. If the provider's medical assistance revenue in the previous year is over 
37.18 	$300,000, the provider agency must purchase a surety bond of $100,000. The surety bond 
37.19 	must be in a form approved by the commissioner, must be renewed annually, and must 
37.20 	allow for recovery of costs and fees in pursuing a claim on the bond. Any action to obtain 
37.21 	monetary recovery or sanctions from a surety bond must occur within six years from the 
37.22 	date the debt is affirmed by a final agency decision. An agency decision is final when the 
37.23 	right to appeal the debt has been exhausted or the time to appeal has expired under section 
37.24 	256B.064;
37.25 	(6) directly provides housing stabilization services using employees of the agency and 
37.26 	not by using a subcontractor or reporting agent;
37.27 	(7) ensures all controlling individuals and employees of the agency complete annual 
37.28 	vulnerable adult training; and
37.29 	(8) completes compliance training as required under section 256B.0446, subdivision 6b
37.30 	2.

38.1 	Sec. 25. Minnesota Statutes 2024, section 256B.064, subdivision 1b, is amended to read:
38.2 		Subd. 1b.Sanctions available. (a) The commissioner may impose the following sanctions 
38.3 	for the conduct described in subdivision 1a: suspension or withholding of payments to an 
38.4 	individual or entity and suspending or terminating participation in the program, or imposition 
38.5 	of a fine under subdivision 2, paragraph (g).
38.6 	(1) suspending payments to an individual or entity;
38.7 	(2) withholding payments to an individual or entity;
38.8 	(3) suspending participation in the program;
38.9 	(4) terminating participation in the program; or
38.10 	(5) imposing a fine under subdivision 2a.
38.11 	(b) When imposing sanctions under this section subdivision, the commissioner shall
38.12 	must consider the nature, chronicity, or severity of the conduct and the effect of the conduct 
38.13 	on the health and safety of persons served by the individual or entity.
38.14 	(c) The commissioner shall must suspend an individual's or entity's participation in the 
38.15 	program for a minimum of five years if the individual or entity is convicted of a crime, 
38.16 	received a stay of adjudication, or entered a court-ordered diversion program for an offense 
38.17 	related to a provision of a health service under medical assistance, including a federally 
38.18 	approved waiver, or health care fraud.
38.19 	(d) Regardless of imposition of sanctions, the commissioner may make a referral to the 
38.20 	appropriate state licensing board.

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

38.22 	Sec. 26. Minnesota Statutes 2024, section 256B.064, subdivision 1c, is amended to read:
38.23 		Subd. 1c.Grounds for and methods of monetary recovery. (a) The commissioner 
38.24 	may obtain monetary recovery from an individual or entity that has been improperly paid 
38.25 	by the department either as a result of conduct described in subdivision 1a or as a result of 
38.26 	an error by the individual or entity submitting the claim or by the department, regardless of 
38.27 	whether the error was intentional. Patterns need not be proven as a precondition to monetary 
38.28 	recovery of erroneous or false claims, duplicate claims, claims for services not medically 
38.29 	necessary, or claims based on false statements.
38.30 	(b) The commissioner may obtain monetary recovery using methods including but not 
38.31 	limited to the following: assessing and recovering money improperly paid and debiting from 
39.1 	future payments any money improperly paid. The commissioner shall must charge interest 
39.2 	on money to be recovered if the recovery is to be made by installment payments or debits, 
39.3 	except when the monetary recovery is of an overpayment that resulted from a department 
39.4 	error. The interest charged shall must be the rate established by the commissioner of revenue 
39.5 	under section 270C.40.

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

39.7 	Sec. 27. Minnesota Statutes 2024, section 256B.064, subdivision 1d, is amended to read:
39.8 		Subd. 1d.Investigative costs. (a) The commissioner may seek recovery of investigative 
39.9 	costs from any individual or entity that willfully submits a claim for reimbursement for 
39.10 	services that the individual or entity knows, or reasonably should have known, is a false 
39.11 	representation and that results in the payment of public funds for which the individual or 
39.12 	entity is ineligible.
39.13 	(b) Billing errors that result in unintentional overcharges shall are not be grounds for 
39.14 	investigative cost recoupment.

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

39.16 	Sec. 28. Minnesota Statutes 2024, section 256B.064, subdivision 2, is amended to read:
39.17 		Subd. 2.Imposition of monetary recovery and sanctions; generally. (a) The 
39.18 	commissioner shall must determine any monetary amounts to be recovered and sanctions 
39.19 	to be imposed upon an individual or entity under this section. Except as provided in 
39.20 	paragraphs (b) and (d), neither subdivisions 2b to 2d, the commissioner must not obtain a 
39.21 	monetary recovery nor or impose a sanction will be imposed by the commissioner without 
39.22 	prior notice and an opportunity for a hearing, according to chapter 14, on the commissioner's 
39.23 	proposed action, provided that the commissioner may suspend or reduce payment to an 
39.24 	individual or entity, except a nursing home or convalescent care facility, after notice and 
39.25 	prior to the hearing if in the commissioner's opinion that action is necessary to protect the 
39.26 	public welfare and the interests of the program.
39.27 	(b) Except when the commissioner finds good cause not to suspend payments under 
39.28 	Code of Federal Regulations, title 42, section 455.23(e) or (f), the commissioner shall 
39.29 	withhold or reduce payments to an individual or entity without providing advance notice 
39.30 	of such withholding or reduction if either of the following occurs:
39.31 	(1) the individual or entity is convicted of a crime involving the conduct described in 
39.32 	subdivision 1a; or
40.1 	(2) the commissioner determines there is a credible allegation of fraud for which an 
40.2 	investigation is pending under the program. Allegations are considered credible when they 
40.3 	have an indicium of reliability and the state agency has reviewed all allegations, facts, and 
40.4 	evidence carefully and acts judiciously on a case-by-case basis. A credible allegation of 
40.5 	fraud is an allegation which has been verified by the state, from any source, including but 
40.6 	not limited to:
40.7 	(i) fraud hotline complaints;
40.8 	(ii) claims data mining; and
40.9 	(iii) patterns identified through provider audits, civil false claims cases, and law 
40.10 	enforcement investigations.
40.11 	(c) The commissioner must send notice of the withholding or reduction of payments 
40.12 	under paragraph (b) within five days of taking such action unless requested in writing by a 
40.13 	law enforcement agency to temporarily withhold the notice. The notice must:
40.14 	(1) state that payments are being withheld according to paragraph (b);
40.15 	(2) set forth the general allegations as to the nature of the withholding action, but need 
40.16 	not disclose any specific information concerning an ongoing investigation;
40.17 	(3) except in the case of a conviction for conduct described in subdivision 1a, state that 
40.18 	the withholding is for a temporary period and cite the circumstances under which withholding 
40.19 	will be terminated;
40.20 	(4) identify the types of claims to which the withholding applies; and
40.21 	(5) inform the individual or entity of the right to submit written evidence for consideration 
40.22 	by the commissioner.
40.23 	(d) The withholding or reduction of payments will not continue after the commissioner 
40.24 	determines there is insufficient evidence of fraud by the individual or entity, or after legal 
40.25 	proceedings relating to the alleged fraud are completed, unless the commissioner has sent 
40.26 	notice of intention to impose monetary recovery or sanctions under paragraph (a). Upon 
40.27 	conviction for a crime related to the provision, management, or administration of a health 
40.28 	service under medical assistance, a payment held pursuant to this section by the commissioner 
40.29 	or a managed care organization that contracts with the commissioner under section 256B.035 
40.30 	is forfeited to the commissioner or managed care organization, regardless of the amount 
40.31 	charged in the criminal complaint or the amount of criminal restitution ordered.
41.1 	(e) The commissioner shall suspend or terminate an individual's or entity's participation 
41.2 	in the program without providing advance notice and an opportunity for a hearing when the 
41.3 	suspension or termination is required because of the individual's or entity's exclusion from 
41.4 	participation in Medicare. Within five days of taking such action, the commissioner must 
41.5 	send notice of the suspension or termination. The notice must:
41.6 	(1) state that suspension or termination is the result of the individual's or entity's exclusion 
41.7 	from Medicare;
41.8 	(2) identify the effective date of the suspension or termination; and
41.9 	(3) inform the individual or entity of the need to be reinstated to Medicare before 
41.10 	reapplying for participation in the program.
41.11 	(f) (b) Upon receipt of a notice under paragraph (a) or subdivision 2c that a monetary 
41.12 	recovery or sanction is to be imposed, an individual or entity may request a contested case, 
41.13 	as defined in section 14.02, subdivision 3, by filing with the commissioner a written request 
41.14 	of appeal. The appeal request must be received by the commissioner no later than 30 days 
41.15 	after the date the notification of monetary recovery or sanction was mailed to the individual 
41.16 	or entity. The appeal request must specify:
41.17 	(1) each disputed item, the reason for the dispute, and an estimate of the dollar amount 
41.18 	involved for each disputed item;
41.19 	(2) the computation that the individual or entity believes is correct;
41.20 	(3) the authority in statute or rule upon which the individual or entity relies for each 
41.21 	disputed item;
41.22 	(4) the name and address of the person or entity with whom contacts may be made 
41.23 	regarding the appeal; and
41.24 	(5) other information required by the commissioner.
41.25 	(g) The commissioner may order an individual or entity to forfeit a fine for failure to 
41.26 	fully document services according to standards in this chapter and Minnesota Rules, chapter 
41.27 	9505. The commissioner may assess fines if specific required components of documentation 
41.28 	are missing. The fine for incomplete documentation shall equal 20 percent of the amount 
41.29 	paid on the claims for reimbursement submitted by the individual or entity, or up to $5,000, 
41.30 	whichever is less. If the commissioner determines that an individual or entity repeatedly 
41.31 	violated this chapter, chapter 254B or 245G, or Minnesota Rules, chapter 9505, related to 
41.32 	the provision of services to program recipients and the submission of claims for payment, 
41.33 	the commissioner may order an individual or entity to forfeit a fine based on the nature, 
42.1 	severity, and chronicity of the violations, in an amount of up to $5,000 or 20 percent of the 
42.2 	value of the claims, whichever is greater.
42.3 	(h) The individual or entity shall pay the fine assessed on or before the payment date 
42.4 	specified. If the individual or entity fails to pay the fine, the commissioner may withhold 
42.5 	or reduce payments and recover the amount of the fine. A timely appeal shall stay payment 
42.6 	of the fine until the commissioner issues a final order.

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

42.8 	Sec. 29. Minnesota Statutes 2024, section 256B.064, is amended by adding a subdivision 
42.9 	to read:
42.10 		Subd. 2a.Imposition of fines. (a) The commissioner may order an individual or entity 
42.11 	to forfeit a fine for failure to fully document services according to standards under this 
42.12 	chapter and Minnesota Rules, chapter 9505. The commissioner may assess fines if specific 
42.13 	required components of documentation are missing. The fine for incomplete documentation 
42.14 	equals 20 percent of the amount paid on the claims for reimbursement submitted by the 
42.15 	individual or entity or up to $5,000, whichever is less. If the commissioner determines that 
42.16 	an individual or entity repeatedly violated this chapter, chapter 245G or 254B, or Minnesota 
42.17 	Rules, chapter 9505, related to the provision of services to program recipients and the 
42.18 	submission of claims for payment, the commissioner may order an individual or entity to 
42.19 	forfeit a fine based on the nature, severity, and chronicity of the violations in an amount of 
42.20 	up to $5,000 or 20 percent of the value of the claims, whichever is greater.
42.21 	(b) The individual or entity must pay the fine assessed on or before the payment date 
42.22 	specified by the commissioner. If the individual or entity fails to pay the fine, the 
42.23 	commissioner may withhold or reduce payments and recover the amount of the fine. A 
42.24 	timely appeal stays payment of the fine until the commissioner issues a final order.

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

42.26 	Sec. 30. Minnesota Statutes 2024, section 256B.064, is amended by adding a subdivision 
42.27 	to read:
42.28 		Subd. 2b.Mandatory suspension or termination after exclusion from participation 
42.29 	in Medicare. (a) The commissioner must suspend or terminate an individual's or entity's 
42.30 	participation in the program without providing advance notice and an opportunity for a 
42.31 	hearing when the suspension or termination is required because of the individual's or entity's 
42.32 	exclusion from participation in Medicare.
43.1 	(b) Within five days of taking an action under paragraph (a), the commissioner must 
43.2 	send notice of the suspension or termination to the individual or entity. The notice must:
43.3 	(1) state that suspension or termination is the result of the individual's or entity's exclusion 
43.4 	from Medicare;
43.5 	(2) identify the effective date of the suspension or termination; and
43.6 	(3) inform the individual or entity of the need to be reinstated to Medicare before 
43.7 	reapplying for participation in the program.

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

43.9 	Sec. 31. Minnesota Statutes 2024, section 256B.064, is amended by adding a subdivision 
43.10 	to read:
43.11 		Subd. 2c.Imposition of withholding or reduction of payments before a hearing. (a) 
43.12 	Except as provided in paragraph (b), the commissioner may withhold or reduce payment 
43.13 	to an individual or entity after notice but before a hearing if, in the commissioner's opinion, 
43.14 	withholding or reducing payment is necessary to protect the public welfare and the interests 
43.15 	of the program.
43.16 	(b) The commissioner must not withhold or reduce payments to a nursing home or 
43.17 	convalescent care facility before a hearing.

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

43.19 	Sec. 32. Minnesota Statutes 2024, section 256B.064, is amended by adding a subdivision 
43.20 	to read:
43.21 		Subd. 2d.Imposition of withholding or reduction of payments without prior 
43.22 	notice. (a) Except when the commissioner finds good cause not to suspend payments under 
43.23 	Code of Federal Regulations, title 42, section 455.23(e) or (f), the commissioner must 
43.24 	withhold or reduce payments to an individual or entity without providing advance notice 
43.25 	of the withholding or reduction if either of the following occurs:
43.26 	(1) the individual or entity is convicted of a crime involving the conduct described in 
43.27 	subdivision 1a; or
43.28 	(2) the commissioner determines there is a credible allegation of fraud for which an 
43.29 	investigation is pending under the program. Allegations are considered credible when the 
43.30 	allegations have an indicium of reliability and the state agency has reviewed all allegations, 
43.31 	facts, and evidence carefully and acts judiciously on a case-by-case basis. A credible 
44.1 	allegation of fraud is an allegation that has been verified by the state from any source, 
44.2 	including but not limited to:
44.3 	(i) fraud hotline complaints;
44.4 	(ii) claims data mining;
44.5 	(iii) patterns identified through provider audits, civil false claims cases, and law 
44.6 	enforcement investigations; and
44.7 	(iv) court filings and other legal documents, including but not limited to police reports, 
44.8 	complaints, indictments, information, affidavits, declarations, and search warrants.
44.9 	(b) The commissioner must send notice of the withholding or reduction of payments 
44.10 	under paragraph (a) within five days of withholding or reducing payment unless requested 
44.11 	in writing by a law enforcement agency to temporarily withhold the notice. The notice must:
44.12 	(1) state that payments are being withheld or reduced according to paragraph (a);
44.13 	(2) set forth the general allegations as to the nature of the withholding or reduction action 
44.14 	but need not disclose any specific information concerning an ongoing investigation;
44.15 	(3) except in the case of a conviction for conduct described in subdivision 1a, state that 
44.16 	the withholding or reduction is for a temporary period and cite the circumstances under 
44.17 	which withholding or reduction will be terminated;
44.18 	(4) identify the types of claims to which the withholding or reduction applies; and
44.19 	(5) inform the individual or entity of the right to submit written evidence for consideration 
44.20 	by the commissioner.
44.21 	(c) The commissioner must cease the withholding or reduction of payments under this 
44.22 	subdivision after the commissioner determines there is insufficient evidence of fraud by the 
44.23 	individual or entity or after legal proceedings relating to the alleged fraud are completed, 
44.24 	unless the commissioner has sent notice of intention to impose monetary recovery or 
44.25 	sanctions.

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

44.27 	Sec. 33. Minnesota Statutes 2024, section 256B.064, is amended by adding a subdivision 
44.28 	to read:
44.29 		Subd. 2e.Forfeiture of withheld payments upon criminal conviction. Upon conviction 
44.30 	for a crime related to the provision, management, or administration of a health service under 
44.31 	medical assistance, a payment held pursuant to this section by the commissioner or a managed 
45.1 	care organization that contracts with the commissioner under section 256B.035 is forfeited 
45.2 	to the commissioner or managed care organization, regardless of the amount charged in the 
45.3 	criminal complaint or the amount of criminal restitution ordered.

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

45.5 	Sec. 34. Minnesota Statutes 2024, section 256B.064, subdivision 3, is amended to read:
45.6 		Subd. 3. Mandates on prohibited payments.  (a) The commissioner shall must maintain 
45.7 	and publish a list of each excluded individual and entity that was convicted of a crime related 
45.8 	to the provision, management, or administration of a medical assistance health service, or 
45.9 	suspended or terminated under subdivision 2 2b. Medical assistance payments cannot be 
45.10 	made by an individual or entity for items or services furnished either directly or indirectly 
45.11 	by an excluded individual or entity, or at the direction of excluded individuals or entities.
45.12 	(b) The entity must check the exclusion list on a monthly basis and document the date 
45.13 	and time the exclusion list was checked and the name and title of the person who checked 
45.14 	the exclusion list. The entity must immediately terminate payments to an individual or entity 
45.15 	on the exclusion list.
45.16 	(c) An entity's requirement to check the exclusion list and to terminate payments to 
45.17 	individuals or entities on the exclusion list applies to each individual or entity on the 
45.18 	exclusion list, even if the named individual or entity is not responsible for direct patient 
45.19 	care or direct submission of a claim to medical assistance.
45.20 	(d) An entity that pays medical assistance program funds to an individual or entity on 
45.21 	the exclusion list must refund any payment related to either items or services rendered by 
45.22 	an individual or entity on the exclusion list from the date the individual or entity is first paid 
45.23 	or the date the individual or entity is placed on the exclusion list, whichever is later, and an 
45.24 	entity may be subject to:
45.25 	(1) sanctions under subdivision 2 this section;
45.26 	(2) a civil monetary penalty of up to $25,000 for each determination by the department 
45.27 	that the vendor employed or contracted with an individual or entity on the exclusion list; 
45.28 	and
45.29 	(3) other fines or penalties allowed by law.

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

46.1 	Sec. 35. Minnesota Statutes 2024, section 256B.064, subdivision 4, is amended to read:
46.2 		Subd. 4.Notice. (a) The department shall must serve the notice required under subdivision
46.3 	subdivisions 2 and 2d using a signature-verified confirmed delivery method to the address 
46.4 	submitted to the department by the individual or entity. Service is complete upon mailing.
46.5 	(b) The department shall must give notice in writing to a recipient placed in the Minnesota 
46.6 	restricted recipient program under section 256B.0646 and Minnesota Rules, part 9505.2200. 
46.7 	The department shall must send the notice by first class mail to the recipient's current address 
46.8 	on file with the department. A recipient placed in the Minnesota restricted recipient program 
46.9 	may contest the placement by submitting a written request for a hearing to the department 
46.10 	within 90 days of the notice being mailed.

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

46.12 	Sec. 36. Minnesota Statutes 2024, section 256B.064, subdivision 5, is amended to read:
46.13 		Subd. 5.Immunity; good faith reporters. (a) A person who makes a good faith report 
46.14 	is immune from any civil or criminal liability that might otherwise arise from reporting or 
46.15 	participating in the investigation. Nothing in this subdivision affects an individual's or 
46.16 	entity's responsibility for an overpayment established under this subdivision.
46.17 	(b) A person employed by a lead investigative agency who is conducting or supervising 
46.18 	an investigation or enforcing the law according to the applicable law or rule is immune from 
46.19 	any civil or criminal liability that might otherwise arise from the person's actions, if the 
46.20 	person is acting in good faith and exercising due care.
46.21 	(c) For purposes of this subdivision, "person" includes a natural person or any form of 
46.22 	a business or legal entity.
46.23 	(d) After an investigation is complete, the reporter's name must be kept confidential. 
46.24 	The subject of the report may compel disclosure of the reporter's name only with the consent 
46.25 	of the reporter or upon a written finding by a district court that the report was false and there 
46.26 	is evidence that the report was made in bad faith. This subdivision does not alter disclosure 
46.27 	responsibilities or obligations under the Rules of Criminal Procedure, except that when the 
46.28 	identity of the reporter is relevant to a criminal prosecution the district court shall must
46.29 	conduct an in-camera review before determining whether to order disclosure of the reporter's 
46.30 	identity.

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

47.1 	Sec. 37. Minnesota Statutes 2024, section 256B.064, is amended by adding a subdivision 
47.2 	to read:
47.3 		Subd. 6.Suspension, withholding, or reduction of payments; administrative 
47.4 	review. (a) An individual or entity that is subject to a temporary withholding or reduction 
47.5 	of payments under subdivision 2d, paragraph (a), clause (2), may request an administrative 
47.6 	review before the state Court of Administrative Hearings within ten business days of 
47.7 	receiving notice of the withholding or reduction of payments. The commissioner must refer 
47.8 	the matter to the Court of Administrative Hearings within five business days of receiving 
47.9 	the request for administrative review.
47.10 	(b) The Court of Administrative Hearings must conduct an expedited hearing within 30 
47.11 	days after the commissioner refers the matter to the court.
47.12 	(c) In an administrative review under this subdivision, the administrative law judge must 
47.13 	determine:
47.14 	(1) whether the commissioner has demonstrated, by a preponderance of the evidence, 
47.15 	that a credible allegation of fraud exists; and
47.16 	(2) whether continuing the temporary withholding or reduction of payments is reasonable 
47.17 	and necessary to protect the integrity of the medical assistance program.
47.18 	(d) The administrative law judge must issue a recommendation within ten days following 
47.19 	the hearing. The administrative law judge must recommend upholding the temporary 
47.20 	withholding or reduction of payments only if the commissioner demonstrates, by a 
47.21 	preponderance of the evidence, that a credible allegation of fraud exists and that payment 
47.22 	withholding or reduction is appropriate under applicable federal Medicaid program integrity 
47.23 	requirements.
47.24 	(e) Within ten days after receiving the administrative law judge's recommendation, the 
47.25 	commissioner must issue a final determination affirming, modifying, or ceasing the temporary 
47.26 	withholding or reduction of payments.
47.27 	(f) If the administrative law judge determines that withholding the full amount of 
47.28 	payments would jeopardize access to medically necessary services for medical assistance 
47.29 	recipients, the commissioner may modify the withholding to allow partial payments for the 
47.30 	duration of an investigation.

48.1 	Sec. 38. Minnesota Statutes 2024, section 256B.064, is amended by adding a subdivision 
48.2 	to read:
48.3 		Subd. 7.Periodic review of withholding or reduction of payments (a) The 
48.4 	commissioner must review any temporary payment withholding or reduction under 
48.5 	subdivision 2d, paragraph (a), clause (2), at least every 90 days to determine whether the 
48.6 	credible allegation of fraud continues to necessitate the withholding or reduction of payments.
48.7 	(b) If a payment withholding or reduction remains in effect for 180 days or more, the 
48.8 	commissioner must provide a written status report on the specific withholding or reduction 
48.9 	to the chairs and ranking minority members of the legislative committees with jurisdiction 
48.10 	over human services. The report must summarize the status of the investigation, specify the 
48.11 	basis for continuing the withholding or reduction, and indicate any anticipated timeline for 
48.12 	resolution. The commissioner may withhold any information that would compromise an 
48.13 	ongoing criminal investigation from the report required under this paragraph.

48.14 	Sec. 39. Minnesota Statutes 2024, section 256B.064, is amended by adding a subdivision 
48.15 	to read:
48.16 		Subd. 8.Coordination with law enforcement. When a temporary withholding or 
48.17 	reduction of payments under subdivision 2d, paragraph (a), clause (2), involves potential 
48.18 	criminal conduct, the commissioner must coordinate with appropriate law enforcement 
48.19 	authorities, including the Minnesota attorney general's Medicaid Fraud Control Unit, and 
48.20 	may consult with state or federal investigative agencies as necessary. The commissioner 
48.21 	may delay notice or disclosure of specific investigative information to the individual or 
48.22 	entity being investigated when law enforcement certifies that disclosure would compromise 
48.23 	an ongoing criminal investigation.

48.24 	Sec. 40. Minnesota Statutes 2024, section 256B.064, is amended by adding a subdivision 
48.25 	to read:
48.26 		Subd. 9.Application. This section supersedes any inconsistent or contrary provision of 
48.27 	law.

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

48.29 	Sec. 41. [256B.0647] REMITTANCE ADVICE MONETARY RECOVERY.
48.30 	(a) The commissioner may use the remittance advice process under Code of Federal 
48.31 	Regulations, title 45, part 162.1601, as the notice to a vendor or provider when seeking 
48.32 	monetary recovery using a department-administered information technology system for 
49.1 	programmatically processed claims. The remittance advice must be delivered electronically 
49.2 	and constitutes the sole notice to the provider. The commissioner must withhold the payments 
49.3 	at issue when using the remittance advice as the notice.
49.4 	(b) Providers may seek reconsideration of a remittance under this section by mailing a 
49.5 	request to the commissioner. The reconsideration request must be received no later than 30 
49.6 	calendar days from the posting of the remittance advice. A request for reconsideration does 
49.7 	not stay the withholding of payments. The commissioner's disposition of a request for 
49.8 	reconsideration is final and not subject to appeal under chapter 14. The request for 
49.9 	reconsideration must include:
49.10 	(1) each disputed item, the reason for the dispute, and an estimate of the dollar amount 
49.11 	involved for each disputed item;
49.12 	(2) the calculation that the individual or entity believes is correct;
49.13 	(3) the authority in statute or rule upon which the individual or entity relies for each 
49.14 	disputed item;
49.15 	(4) the name and address of the person or entity with whom contacts may be made 
49.16 	regarding the appeal; and
49.17 	(5) other information required by the commissioner.

49.18 	Sec. 42. Minnesota Statutes 2024, section 256B.0651, subdivision 17, is amended to read:
49.19 		Subd. 17.Recipient protection. (a) Providers of home care services must provide each 
49.20 	recipient with a copy of the home care bill of rights under section 144A.44 at least 30 days 
49.21 	prior to terminating services to a recipient, if the termination results from provider sanctions 
49.22 	under section 256B.064, such as a payment withhold, a suspension of participation, or a 
49.23 	termination of participation. If a home care provider determines it is unable to continue 
49.24 	providing services to a recipient, the provider must notify the recipient, the recipient's 
49.25 	responsible party, and the commissioner 30 days prior to terminating services to the recipient 
49.26 	because of an action under section 256B.064, and must assist the commissioner and lead 
49.27 	agency in supporting the recipient in transitioning to another home care provider of the 
49.28 	recipient's choice meet the recipient protection requirements under section 256B.045 when 
49.29 	subject to a serious operational event as defined in section 256B.045, subdivision 1.
49.30 	(b) In the event of a payment withhold from a home care provider, a suspension of 
49.31 	participation, or a termination of participation of a home care provider under section 
49.32 	256B.064, the commissioner may inform the Office of Ombudsman for Long-Term Care 
49.33 	and the lead agencies for all recipients with active service agreements with the provider. At 
50.1 	the commissioner's request, the lead agencies must contact recipients to ensure that the 
50.2 	recipients are continuing to receive needed care, and that the recipients have been given 
50.3 	free choice of provider if they transfer to another home care provider. In addition, the 
50.4 	commissioner or the commissioner's delegate may directly notify recipients who receive 
50.5 	care from the provider that payments have been or will be withheld or that the provider's 
50.6 	participation in medical assistance has been or will be suspended or terminated, if the 
50.7 	commissioner determines that notification is necessary to protect the welfare of the recipients. 
50.8 	For purposes of this subdivision, "lead agencies" means counties, tribes, and managed care 
50.9 	organizations.

50.10 	Sec. 43. Minnesota Statutes 2025 Supplement, section 256B.0701, subdivision 9, is 
50.11 	amended to read:
50.12 		Subd. 9.Provider qualifications and duties. A provider is eligible for reimbursement 
50.13 	under this section only if the provider:
50.14 	(1) is confirmed by the commissioner as an eligible provider after a pre-enrollment risk 
50.15 	assessment under subdivision 10;
50.16 	(2) is enrolled as a medical assistance Minnesota health care program provider and meets 
50.17 	all applicable provider standards and requirements;
50.18 	(3) demonstrates compliance with federal and state laws and policies for housing 
50.19 	stabilization services as determined by the commissioner;
50.20 	(4) complies with background study requirements under chapter 245C and maintains 
50.21 	documentation of background study requests and results;
50.22 	(5) provides at the time of enrollment, reenrollment, and revalidation in a format 
50.23 	determined by the commissioner, proof of surety bond coverage for each business location 
50.24 	providing services. Upon new enrollment, or if the provider's medical assistance revenue 
50.25 	in the previous calendar year is $300,000 or less, the provider agency must purchase a surety 
50.26 	bond of $50,000. If the provider's medical assistance revenue in the previous year is over 
50.27 	$300,000, the provider agency must purchase a surety bond of $100,000. The surety bond 
50.28 	must be in a form approved by the commissioner, must be renewed annually, and must 
50.29 	allow for recovery of costs and fees in pursuing a claim on the bond. Any action to obtain 
50.30 	monetary recovery or sanctions from a surety bond must occur within six years from the 
50.31 	date the debt is affirmed by a final agency decision. An agency decision is final when the 
50.32 	right to appeal the debt has been exhausted or the time to appeal has expired under section 
50.33 	256B.064;
51.1 	(6) ensures all controlling individuals and employees of the agency complete annual 
51.2 	vulnerable adult training;
51.3 	(7) completes compliance training as required under section 256B.0446, subdivision 11
51.4 	2; and
51.5 	(8) complies with the habitability inspection requirements in subdivision 13.

51.6 	Sec. 44. Minnesota Statutes 2025 Supplement, section 256B.0759, subdivision 4, is 
51.7 	amended to read:
51.8 		Subd. 4.Provider payment rates. (a) Payment rates for participating providers must 
51.9 	be increased for services provided to medical assistance enrollees. To receive a rate increase, 
51.10 	participating providers must meet demonstration project requirements and provide evidence 
51.11 	of formal referral arrangements with providers delivering step-up or step-down levels of 
51.12 	care. Providers that have enrolled in the demonstration project but have not met the provider 
51.13 	standards under subdivision 3 as of July 1, 2022, are not eligible for a rate increase under 
51.14 	this subdivision until the date that the provider meets the provider standards in subdivision 
51.15 	3. Services provided from July 1, 2022, to the date that the provider meets the provider 
51.16 	standards under subdivision 3 shall be reimbursed at rates according to section 254B.0505, 
51.17 	subdivision 1. Rate increases paid under this subdivision to a provider for services provided 
51.18 	between July 1, 2021, and July 1, 2022, are not subject to recoupment when the provider 
51.19 	is taking meaningful steps to meet demonstration project requirements that are not otherwise 
51.20 	required by law, and the provider provides documentation to the commissioner, upon request, 
51.21 	of the steps being taken.
51.22 	(b) The commissioner may temporarily suspend payments to the provider according to 
51.23 	section 256B.04, subdivision 21, paragraph (d) 256B.0442, subdivision 1, if the provider 
51.24 	does not meet the requirements in paragraph (a). Payments withheld from the provider must 
51.25 	be made once the commissioner determines that the requirements in paragraph (a) are met.
51.26 	(c) For outpatient individual and group substance use disorder services under section 
51.27 	254B.0505, subdivision 1, clause (1), and adolescent treatment programs that are licensed 
51.28 	as outpatient treatment programs according to sections 245G.01 to 245G.18, provided on 
51.29 	or after January 1, 2021, payment rates must be increased by 20 percent over the rates in 
51.30 	effect on December 31, 2020.
51.31 	(d) Effective January 1, 2021, and contingent on annual federal approval, managed care 
51.32 	plans and county-based purchasing plans must reimburse providers of the substance use 
51.33 	disorder services meeting the criteria described in paragraph (a) who are employed by or 
52.1 	under contract with the plan an amount that is at least equal to the fee-for-service base rate 
52.2 	payment for the substance use disorder services described in paragraph (c). The commissioner 
52.3 	must monitor the effect of this requirement on the rate of access to substance use disorder 
52.4 	services and residential substance use disorder rates. Capitation rates paid to managed care 
52.5 	organizations and county-based purchasing plans must reflect the impact of this requirement. 
52.6 	This paragraph expires if federal approval is not received at any time as required under this 
52.7 	paragraph.
52.8 	(e) Effective July 1, 2021, contracts between managed care plans and county-based 
52.9 	purchasing plans and providers to whom paragraph (d) applies must allow recovery of 
52.10 	payments from those providers if, for any contract year, federal approval for the provisions 
52.11 	of paragraph (d) is not received, and capitation rates are adjusted as a result. Payment 
52.12 	recoveries must not exceed the amount equal to any decrease in rates that results from this 
52.13 	provision.
52.14 	(f) For substance use disorder services with medications for opioid use disorder under 
52.15 	section 254B.0505, subdivision 1, clause (7), provided on or after January 1, 2021, payment 
52.16 	rates must be increased by 20 percent over the rates in effect on December 31, 2020. Upon 
52.17 	implementation of new rates according to section 254B.121, the 20 percent increase will 
52.18 	no longer apply.

52.19 	Sec. 45. Minnesota Statutes 2025 Supplement, section 256B.0949, subdivision 16, is 
52.20 	amended to read:
52.21 		Subd. 16.Agency duties. (a) An agency delivering an EIDBI service under this section 
52.22 	must:
52.23 	(1) enroll as a medical assistance Minnesota health care program provider according to 
52.24 	Minnesota Rules, part 9505.0195, and section 256B.04, subdivision 21, sections 256B.044 
52.25 	to 256B.0448 and meet all applicable provider standards and requirements;
52.26 	(2) designate an individual as the agency's compliance officer who must perform the 
52.27 	duties described in section 256B.04, subdivision 21, paragraph (g) 256B.044, subdivision 
52.28 	8, paragraph (b);
52.29 	(3) demonstrate compliance with federal and state laws for the delivery of and billing 
52.30 	for EIDBI service;
52.31 	(4) verify and maintain records of a service provided to the person or the person's legal 
52.32 	representative as required under Minnesota Rules, parts 9505.2175 and 9505.2197;
53.1 	(5) demonstrate that while enrolled or seeking enrollment as a Minnesota health care 
53.2 	program provider the agency did not have a lead agency contract or provider agreement 
53.3 	discontinued because of a conviction of fraud; or did not have an owner, board member, or 
53.4 	manager fail a state or federal criminal background check or appear on the list of excluded 
53.5 	individuals or entities maintained by the federal Department of Human Services Office of 
53.6 	Inspector General;
53.7 	(6) have established business practices including written policies and procedures, internal 
53.8 	controls, and a system that demonstrates the organization's ability to deliver quality EIDBI 
53.9 	services, appropriately submit claims, conduct required staff training, document staff 
53.10 	qualifications, document service activities, and document service quality;
53.11 	(7) have an office located in Minnesota or a border state;
53.12 	(8) initiate a background study as required under subdivision 16a;
53.13 	(9) report maltreatment according to section 626.557 and chapter 260E;
53.14 	(10) comply with any data requests consistent with the Minnesota Government Data 
53.15 	Practices Act, sections 256B.064 and 256B.27;
53.16 	(11) provide training for all agency staff on the requirements and responsibilities listed 
53.17 	in the Maltreatment of Minors Act, chapter 260E, and the Vulnerable Adult Protection Act, 
53.18 	section 626.557, including mandated and voluntary reporting, nonretaliation, and the agency's 
53.19 	policy for all staff on how to report suspected abuse and neglect;
53.20 	(12) have a written policy to resolve issues collaboratively with the person and the 
53.21 	person's legal representative when possible. The policy must include a timeline for when 
53.22 	the person and the person's legal representative will be notified about issues that arise in 
53.23 	the provision of services;
53.24 	(13) provide the person's legal representative with prompt notification if the person is 
53.25 	injured while being served by the agency. An incident report must be completed by the 
53.26 	agency staff member in charge of the person. A copy of all incident and injury reports must 
53.27 	remain on file at the agency for at least five years from the report of the incident;
53.28 	(14) before starting a service, provide the person or the person's legal representative a 
53.29 	description of the treatment modality that the person shall receive, including the staffing 
53.30 	certification levels and training of the staff who shall provide a treatment;
53.31 	(15) provide clinical supervision for a minimum of one hour for every 16 hours of direct 
53.32 	treatment per person, unless otherwise authorized in the person's individual treatment plan; 
53.33 	and
54.1 	(16) provide required EIDBI intervention observation and direction at least once per 
54.2 	month. Notwithstanding subdivision 13, paragraph (l), required EIDBI intervention 
54.3 	observation and direction under this clause may be conducted via telehealth provided that 
54.4 	no more than two consecutive monthly required EIDBI intervention observation and direction 
54.5 	sessions under this clause are conducted via telehealth.
54.6 	(b) Upon request of the commissioner, an agency delivering services under this section 
54.7 	must:
54.8 	(1) identify the agency's controlling individuals, as defined under section 245A.02, 
54.9 	subdivision 5a;
54.10 	(2) provide disclosures of the use of billing agencies and other consultants who do not 
54.11 	provide EIDBI services; and
54.12 	(3) provide copies of any contracts with consultants or independent contractors who do 
54.13 	not provide EIDBI services, including hours contracted and responsibilities.
54.14 	(c) When delivering the ITP, and annually thereafter, an agency must provide the person 
54.15 	or the person's legal representative with:
54.16 	(1) a written copy and a verbal explanation of the person's or person's legal 
54.17 	representative's rights and the agency's responsibilities;
54.18 	(2) documentation in the person's file the date that the person or the person's legal 
54.19 	representative received a copy and explanation of the person's or person's legal 
54.20 	representative's rights and the agency's responsibilities; and
54.21 	(3) reasonable accommodations to provide the information in another format or language 
54.22 	as needed to facilitate understanding of the person's or person's legal representative's rights 
54.23 	and the agency's responsibilities.

54.24 	Sec. 46. Minnesota Statutes 2024, section 256B.0949, subdivision 17, is amended to read:
54.25 		Subd. 17.Provider shortage; authority for exceptions. (a) In consultation with the 
54.26 	Early Intensive Developmental and Behavioral Intervention Advisory Council and 
54.27 	stakeholders, including agencies, professionals, parents of people with ASD or a related 
54.28 	condition, and advocacy organizations, the commissioner shall determine if a shortage of 
54.29 	EIDBI providers exists. For the purposes of this subdivision, "shortage of EIDBI providers" 
54.30 	means a lack of availability of providers who meet the EIDBI provider qualification 
54.31 	requirements under subdivision 15 that results in the delay of access to timely services under 
54.32 	this section, or that significantly impairs the ability of a provider agency to have sufficient 
55.1 	providers to meet the requirements of this section. The commissioner shall consider 
55.2 	geographic factors when determining the prevalence of a shortage. The commissioner may 
55.3 	determine that a shortage exists only in a specific region of the state, multiple regions of 
55.4 	the state, or statewide. The commissioner shall also consider the availability of various types 
55.5 	of treatment modalities covered under this section.
55.6 	(b) The commissioner, in consultation with the Early Intensive Developmental and 
55.7 	Behavioral Intervention Advisory Council and stakeholders, must establish processes and 
55.8 	criteria for granting an exception under this paragraph. The commissioner may grant an 
55.9 	exception only if the exception would not compromise a person's safety and not diminish 
55.10 	the effectiveness of the treatment. The commissioner may establish an expiration date for 
55.11 	an exception granted under this paragraph. The commissioner may grant an exception for 
55.12 	the following:
55.13 	(1) EIDBI provider qualifications under this section;
55.14 	(2) medical assistance provider enrollment requirements under section 256B.04, 
55.15 	subdivision 21 sections 256B.044 to 256B.0448; or
55.16 	(3) EIDBI provider or agency standards or requirements.
55.17 	(c) If the commissioner, in consultation with the Early Intensive Developmental and 
55.18 	Behavioral Intervention Advisory Council and stakeholders, determines that a shortage no 
55.19 	longer exists, the commissioner must submit a notice that a shortage no longer exists to the 
55.20 	chairs and ranking minority members of the senate and the house of representatives 
55.21 	committees with jurisdiction over health and human services. The commissioner must post 
55.22 	the notice for public comment for 30 days. The commissioner shall consider public comments 
55.23 	before submitting to the legislature a request to end the shortage declaration. The 
55.24 	commissioner shall not declare the shortage of EIDBI providers ended without direction 
55.25 	from the legislature to declare it ended.

55.26 	Sec. 47. Minnesota Statutes 2024, section 256B.69, subdivision 5a, is amended to read:
55.27 		Subd. 5a.Managed care contracts. (a) Managed care contracts under this section and 
55.28 	section 256L.12 shall be entered into or renewed on a calendar year basis. The commissioner 
55.29 	may issue separate contracts with requirements specific to services to medical assistance 
55.30 	recipients age 65 and older.
55.31 	(b) A prepaid health plan providing covered health services for eligible persons pursuant 
55.32 	to chapters 256B and 256L is responsible for complying with the terms of its contract with 
55.33 	the commissioner. Requirements applicable to managed care programs under chapters 256B 
56.1 	and 256L established after the effective date of a contract with the commissioner take effect 
56.2 	when the contract is next issued or renewed.
56.3 	(c) The commissioner shall withhold five percent of managed care plan payments under 
56.4 	this section and county-based purchasing plan payments under section 256B.692 for the 
56.5 	prepaid medical assistance program pending completion of performance targets. Each 
56.6 	performance target must be quantifiable, objective, measurable, and reasonably attainable, 
56.7 	except in the case of a performance target based on a federal or state law or rule. Criteria 
56.8 	for assessment of each performance target must be outlined in writing prior to the contract 
56.9 	effective date. Clinical or utilization performance targets and their related criteria must 
56.10 	consider evidence-based research and reasonable interventions when available or applicable 
56.11 	to the populations served, and must be developed with input from external clinical experts 
56.12 	and stakeholders, including managed care plans, county-based purchasing plans, and 
56.13 	providers. The managed care or county-based purchasing plan must demonstrate, to the 
56.14 	commissioner's satisfaction, that the data submitted regarding attainment of the performance 
56.15 	target is accurate. The commissioner shall periodically change the administrative measures 
56.16 	used as performance targets in order to improve plan performance across a broader range 
56.17 	of administrative services. The performance targets must include measurement of plan 
56.18 	efforts to contain spending on health care services and administrative activities. The 
56.19 	commissioner may adopt plan-specific performance targets that take into account factors 
56.20 	affecting only one plan, including characteristics of the plan's enrollee population. The 
56.21 	withheld funds must be returned no sooner than July of the following year if performance 
56.22 	targets in the contract are achieved. The commissioner may exclude special demonstration 
56.23 	projects under subdivision 23.
56.24 	(d) The commissioner shall require that managed care plans:
56.25 	(1) use the assessment and authorization processes, forms, timelines, standards, 
56.26 	documentation, and data reporting requirements, protocols, billing processes, and policies 
56.27 	consistent with medical assistance fee-for-service or the Department of Human Services 
56.28 	contract requirements for all personal care assistance services under section 256B.0659 and 
56.29 	community first services and supports under section 256B.85;
56.30 	(2) by January 30 of each year that follows a rate increase for any aspect of services 
56.31 	under section 256B.0659 or 256B.85, inform the commissioner and the chairs and ranking 
56.32 	minority members of the legislative committees with jurisdiction over rates determined 
56.33 	under section 256B.851 of the amount of the rate increase that is paid to each personal care 
56.34 	assistance provider agency with which the plan has a contract; and
57.1 	(3) use a six-month timely filing standard and provide an exemption to the timely filing 
57.2 	timeliness for the resubmission of claims where there has been a denial, request for more 
57.3 	information, or system issue.;
57.4 	(4) have in place a prepayment review process for all claims that includes claims edit 
57.5 	processing and policies consistent with the enhanced prepayment review process under 
57.6 	section 256B.0447; and
57.7 	(5) publish metrics related to program integrity actions and outcomes on a publicly 
57.8 	available website.
57.9 	(e) Effective for services rendered on or after January 1, 2013, through December 31, 
57.10 	2013, the commissioner shall withhold 4.5 percent of managed care plan payments under 
57.11 	this section and county-based purchasing plan payments under section 256B.692 for the 
57.12 	prepaid medical assistance program. The withheld funds must be returned no sooner than 
57.13 	July 1 and no later than July 31 of the following year. The commissioner may exclude 
57.14 	special demonstration projects under subdivision 23.
57.15 	(f) Effective for services rendered on or after January 1, 2014, the commissioner shall 
57.16 	withhold three percent of managed care plan payments under this section and county-based 
57.17 	purchasing plan payments under section 256B.692 for the prepaid medical assistance 
57.18 	program. The withheld funds must be returned no sooner than July 1 and no later than July 
57.19 	31 of the following year. The commissioner may exclude special demonstration projects 
57.20 	under subdivision 23.
57.21 	(g) A managed care plan or a county-based purchasing plan under section 256B.692 
57.22 	may include as admitted assets under section 62D.044 any amount withheld under this 
57.23 	section that is reasonably expected to be returned.
57.24 	(h) Contracts between the commissioner and a prepaid health plan are exempt from the 
57.25 	set-aside and preference provisions of section 16C.16, subdivisions 6, paragraph (a), and 
57.26 	7.
57.27 	(i) The return of the withhold under paragraphs (e) and (f) is not subject to the 
57.28 	requirements of paragraph (c).
57.29 	(j) Managed care plans and county-based purchasing plans shall maintain current and 
57.30 	fully executed agreements for all subcontractors, including bargaining groups, for 
57.31 	administrative services that are expensed to the state's public health care programs. 
57.32 	Subcontractor agreements determined to be material, as defined by the commissioner after 
57.33 	taking into account state contracting and relevant statutory requirements, must be in the 
58.1 	form of a written instrument or electronic document containing the elements of offer, 
58.2 	acceptance, consideration, payment terms, scope, duration of the contract, and how the 
58.3 	subcontractor services relate to state public health care programs. Upon request, the 
58.4 	commissioner shall have access to all subcontractor documentation under this paragraph. 
58.5 	Nothing in this paragraph shall allow release of information that is nonpublic data pursuant 
58.6 	to section 13.02.
58.7 	(k) The commissioner has the right to recover from a managed care plan the full monetary 
58.8 	amount of any claims identified as improperly paid during audits or investigations by the 
58.9 	commissioner or the commissioner's contractors or the Centers for Medicare and Medicaid 
58.10 	Services.

58.11 	Sec. 48. Minnesota Statutes 2024, section 256B.69, is amended by adding a subdivision 
58.12 	to read:
58.13 		Subd. 38.Duties when a provider is no longer able to provide services. When a 
58.14 	provider is subject to a serious operational event under section 256B.045, managed care 
58.15 	and county-based purchasing plans must follow the complex transition operations plan 
58.16 	developed under section 256B.046, honor existing service authorizations when clinically 
58.17 	appropriate for continuity and safe transfer of services, and ensure timely contracting or 
58.18 	single-case arrangements to prevent service gaps.

58.19 	Sec. 49. Minnesota Statutes 2024, section 256B.85, subdivision 23a, is amended to read:
58.20 		Subd. 23a.Sanctions; information for participants upon termination of services. (a) 
58.21 	The commissioner may withhold payment from the provider or suspend or terminate the 
58.22 	provider enrollment number if the provider fails to comply fully with applicable laws or 
58.23 	rules. The provider has the right to appeal the decision of the commissioner under section 
58.24 	256B.064.
58.25 	(b) Notwithstanding subdivision 13, paragraph (e), if a participant employer fails to 
58.26 	comply fully with applicable laws or rules, the commissioner may disenroll the participant 
58.27 	from the budget model. A participant may appeal in writing to the department under section 
58.28 	256.045, subdivision 3, to contest the department's decision to disenroll the participant from 
58.29 	the budget model.
58.30 	(c) Agency-providers of CFSS services or FMS providers must provide each participant 
58.31 	with a copy of participant protections in subdivision 20c at least 30 days prior to terminating 
58.32 	services to a participant, if the termination results from sanctions under this subdivision or 
58.33 	section 256B.064, such as a payment withhold or a suspension or termination of the provider 
59.1 	enrollment number. If a CFSS agency-provider, FMS provider, or consultation services 
59.2 	provider determines it is unable to continue providing services to a participant because of 
59.3 	an action under this subdivision or section 256B.064, the agency-provider, FMS provider, 
59.4 	or consultation services provider must notify the participant, the participant's representative, 
59.5 	and the commissioner 30 days prior to terminating services to the participant, and must 
59.6 	assist the commissioner and lead agency in supporting the participant in transitioning to 
59.7 	another CFSS agency-provider, FMS provider, or consultation services provider of the 
59.8 	participant's choice meet the recipient protection requirements under section 256B.045 when 
59.9 	subject to a serious operational event as defined in section 256B.045, subdivision 1.
59.10 	(d) In the event the commissioner withholds payment from a CFSS agency-provider, 
59.11 	FMS provider, or consultation services provider, or suspends or terminates a provider 
59.12 	enrollment number of a CFSS agency-provider, FMS provider, or consultation services 
59.13 	provider under this subdivision or section 256B.064, the commissioner may inform the 
59.14 	Office of Ombudsman for Long-Term Care and the lead agencies for all participants with 
59.15 	active service agreements with the agency-provider, FMS provider, or consultation services 
59.16 	provider. At the commissioner's request, the lead agencies must contact participants to 
59.17 	ensure that the participants are continuing to receive needed care, and that the participants 
59.18 	have been given free choice of agency-provider, FMS provider, or consultation services 
59.19 	provider if they transfer to another CFSS agency-provider, FMS provider, or consultation 
59.20 	services provider. In addition, the commissioner or the commissioner's delegate may directly 
59.21 	notify participants who receive care from the agency-provider, FMS provider, or consultation 
59.22 	services provider that payments have been or will be withheld or that the provider's 
59.23 	participation in medical assistance has been or will be suspended or terminated, if the 
59.24 	commissioner determines that the notification is necessary to protect the welfare of the 
59.25 	participants.

59.26 	Sec. 50. MANDATORY COMPLIANCE TRAINING FOR CURRENTLY 
59.27 	ENROLLED HIGH-RISK MEDICAL ASSISTANCE PROVIDERS.
 59.28 	The owners and employees of any medical assistance provider agency subject to the 
59.29 	requirements of Minnesota Statutes, section 256B.0446, subdivision 2, and enrolled before 
59.30 	January 1, 2027, must complete initial compliance training by January 1, 2028.

59.31 	Sec. 51. REPEALER.
 59.32 	Minnesota Statutes 2025 Supplement, section 256B.0701, subdivision 11, is repealed.

60.1 	ARTICLE 2
60.2 	DEPARTMENT OF HUMAN SERVICES OFFICE OF INSPECTOR GENERAL 
60.3 	POLICY

60.4 	Section 1. Minnesota Statutes 2024, section 13A.03, is amended by adding a subdivision 
60.5 	to read:
60.6 		Subd. 2a.Exception. Law enforcement may delay notification under section 13A.02, 
60.7 	subdivision 3, or authorize another government authority to delay notification to a customer 
60.8 	without a court order if law enforcement determines in writing that notification would 
60.9 	compromise the integrity of a current and ongoing criminal investigation. The written 
60.10 	determination from law enforcement must be renewed every 90 days.

60.11 	Sec. 2. Minnesota Statutes 2024, section 245.095, subdivision 2, is amended to read:
60.12 		Subd. 2.Definitions. (a) For purposes of this section, the following definitions have the 
60.13 	meanings given.
60.14 	(b) "Associated entity" means a provider or vendor owned or controlled by an excluded 
60.15 	individual.
60.16 	(c) "Associated individual" means an individual or entity that has a relationship with 
60.17 	the business or its owners or controlling individuals, such that the individual or entity would 
60.18 	have knowledge of the financial practices of the program in question.
60.19 	(d) "Convicted" means a judgment of conviction has been entered by a federal, state, or 
60.20 	local court, regardless of whether an appeal from the judgment is pending, and includes a 
60.21 	stay of adjudication, a court-ordered diversion program, or a plea of guilty or nolo contendere.
60.22 	(e) "Credible allegation of fraud" means an allegation that has been verified by the 
60.23 	commissioner from any source, including but not limited to:
60.24 	(1) fraud hotline complaints;
60.25 	(2) claims data mining;
60.26 	(3) patterns identified through provider audits, civil false claims cases, and law 
60.27 	enforcement investigations; and
60.28 	(4) court filings and other legal documents, including but not limited to police reports, 
60.29 	complaints, indictments, informations, affidavits, declarations, and search warrants.
60.30 	Allegations are credible when they have an indicium of reliability and the state agency has 
60.31 	reviewed all allegations, facts, and evidence carefully and acts judiciously on a case-by-case 
60.32 	basis.
61.1 	(d) (f) "Excluded" means removed under other authorities from a program administered 
61.2 	by a Minnesota state or federal agency, including. Excluded includes but is not limited to:
61.3 	(1) a final determination to stop payments.;
61.4 	(2) a conclusive background study disqualification, except for a disqualification issued 
61.5 	under section 245C.15, subdivision 4c, that has not been set aside or had a variance granted 
61.6 	under section 245C.30; and
61.7 	(3) a final agency decision regarding a denial of a license application.
61.8 	(g) "Fraud" has the meaning given in section 256B.02, subdivision 20.
61.9 	(e) (h) "Individual" means a natural person providing products or services as a provider 
61.10 	or vendor.
61.11 	(f) (i) "Provider" means any entity, individual, owner, controlling individual, license 
61.12 	holder, director, or managerial official of an entity receiving payment from a program 
61.13 	administered by a Minnesota state or federal agency.

61.14 	Sec. 3. Minnesota Statutes 2024, section 245.095, subdivision 5, is amended to read:
61.15 		Subd. 5.Withholding of payments. (a) Except as otherwise provided by state or federal 
61.16 	law, the commissioner may withhold payments to a provider, vendor, individual, associated 
61.17 	individual, or associated entity in any program administered by the commissioner if the 
61.18 	commissioner determines:
61.19 	(1) there is a credible allegation of fraud for which an investigation is pending for a 
61.20 	program administered by a Minnesota state or federal agency.;
61.21 	(2) the individual, the entity, or an associated individual or entity was convicted of a 
61.22 	crime, in state or federal court, for an offense that involves fraud or theft against a program 
61.23 	administered by the commissioner or another state or federal agency;
61.24 	(3) the provider is operating after a state or federal agency orders the suspension, 
61.25 	revocation, or decertification of the provider's license or certification, or if the provider is 
61.26 	subject to a temporary immediate suspension, regardless of whether the action is under 
61.27 	appeal; or
61.28 	(4) the provider, vendor, individual, associated individual, or associated entity, including 
61.29 	those receiving money under any contract or registered program, has a background study 
61.30 	disqualification under section 245C.15, subdivisions 1 to 4b, that has not been set aside and 
61.31 	for which no variance has been issued.
62.1 	(b) For purposes of this subdivision, "credible allegation of fraud" means an allegation 
62.2 	that has been verified by the commissioner from any source, including but not limited to:
62.3 	(1) fraud hotline complaints;
62.4 	(2) claims data mining;
62.5 	(3) patterns identified through provider audits, civil false claims cases, and law 
62.6 	enforcement investigations; and
62.7 	(4) court filings and other legal documents, including but not limited to police reports, 
62.8 	complaints, indictments, informations, affidavits, declarations, and search warrants.
62.9 	(c) (b) The commissioner must send notice of the withholding of payments within five 
62.10 	days of taking such action. The notice must:
62.11 	(1) state that payments are being withheld according to this subdivision;
62.12 	(2) set forth the general allegations related to the withholding action, except the notice 
62.13 	need not disclose specific information concerning an ongoing investigation;
62.14 	(3) state that the withholding is for a temporary period and cite the circumstances under 
62.15 	which the withholding will be terminated; and
62.16 	(4) inform the provider, vendor, individual, associated individual, or associated entity 
62.17 	of the right to submit written evidence to contest the withholding action for consideration 
62.18 	by the commissioner.
62.19 	(d) (c) If the commissioner withholds payments under this subdivision, the provider, 
62.20 	vendor, individual, associated individual, or associated entity has a right to request 
62.21 	administrative reconsideration. A request for administrative reconsideration must be made 
62.22 	in writing, state with specificity the reasons the payment withholding decision is in error, 
62.23 	and include documents to support the request. Within 60 days from receipt of the request, 
62.24 	the commissioner shall judiciously review allegations, facts, evidence available to the 
62.25 	commissioner, and information submitted by the provider, vendor, individual, associated 
62.26 	individual, or associated entity to determine whether the payment withholding should remain 
62.27 	in place.
62.28 	(e) (d) The commissioner shall stop withholding payments if the commissioner determines 
62.29 	there is insufficient evidence of fraud by the provider, vendor, individual, associated 
62.30 	individual, or associated entity or when legal proceedings relating to the alleged fraud are 
62.31 	completed, unless the commissioner has sent notice under subdivision 3 to the provider, 
62.32 	vendor, individual, associated individual, or associated entity.
63.1 	(f) (e) The withholding of payments under this section is a temporary action and is not 
63.2 	subject to appeal under section 256.045 or chapter 14.
63.3 	(f) Section 15.013 does not apply to the commissioner taking action under this section.

63.4 	Sec. 4. Minnesota Statutes 2024, section 245A.07, subdivision 2a, is amended to read:
63.5 		Subd. 2a.Immediate suspension expedited hearing. (a) Within five working days of 
63.6 	receipt of the license holder's timely appeal, the commissioner shall request assignment of 
63.7 	an administrative law judge. The request must include a proposed date, time, and place of 
63.8 	a hearing. A hearing must be conducted by an administrative law judge within 30 calendar 
63.9 	days of the request for assignment, unless an extension is requested by either party and 
63.10 	granted by the administrative law judge for good cause. The commissioner shall issue a 
63.11 	notice of hearing by certified mail or personal service at least ten working days before the 
63.12 	hearing. The scope of the hearing shall be limited solely to the issue of whether the temporary 
63.13 	immediate suspension should remain in effect pending the commissioner's final order under 
63.14 	section 245A.08, regarding a licensing sanction issued under subdivision 3 following the 
63.15 	immediate suspension. For suspensions under subdivision 2, paragraph (a), clause (1), the 
63.16 	burden of proof in expedited hearings under this subdivision shall be limited to is met only 
63.17 	if the commissioner's demonstration commissioner demonstrates that reasonable cause exists 
63.18 	to believe that the license holder's or controlling individual's actions or failure to comply 
63.19 	with applicable law or rule poses, or the actions of other individuals or conditions in the 
63.20 	program poses an imminent risk of harm to the health, safety, or rights of persons served 
63.21 	by the program. "Reasonable cause" means there exist specific articulable facts or 
63.22 	circumstances which provide the commissioner with a reasonable suspicion that there is an 
63.23 	imminent risk of harm to the health, safety, or rights of persons served by the program. 
63.24 	When the commissioner has determined there is reasonable cause to order the temporary 
63.25 	immediate suspension of a license based on a violation of safe sleep requirements, as defined 
63.26 	in section 245A.1435, the commissioner is not required to demonstrate that an infant died 
63.27 	or was injured as a result of the safe sleep violations. For suspensions under subdivision 2, 
63.28 	paragraph (a), clause (2), the burden of proof in expedited hearings under this subdivision 
63.29 	shall be limited to is met only if the commissioner's demonstration commissioner 
63.30 	demonstrates by a preponderance of the evidence that, since the license was revoked, the 
63.31 	license holder committed additional violations of law or rule which may adversely affect 
63.32 	the health or safety of persons served by the program.
63.33 	(b) The administrative law judge shall issue findings of fact, conclusions, and a 
63.34 	recommendation within ten working days from the date of hearing. The parties shall have 
64.1 	ten calendar days to submit exceptions to the administrative law judge's report. The record 
64.2 	shall close at the end of the ten-day period for submission of exceptions. The commissioner's 
64.3 	final order shall be issued within ten working days from the close of the record. When an 
64.4 	appeal of a temporary immediate suspension is withdrawn or dismissed, the commissioner 
64.5 	shall issue a final order affirming the temporary immediate suspension within ten calendar 
64.6 	days of the commissioner's receipt of the withdrawal or dismissal. Within 90 calendar days 
64.7 	after an immediate suspension has been issued and the license holder has not submitted a 
64.8 	timely appeal under subdivision 2, paragraph (b), or within 90 calendar days after a final 
64.9 	order affirming an immediate suspension, the commissioner shall determine:
64.10 	(1) whether a final licensing sanction shall be issued under subdivision 3, paragraph (a), 
64.11 	clauses (1) to (6) (5). The license holder shall continue to be prohibited from operation of 
64.12 	the program during this 90-day period; or
64.13 	(2) whether the outcome of related, ongoing investigations or judicial proceedings are 
64.14 	necessary to determine if a final licensing sanction under subdivision 3, paragraph (a), 
64.15 	clauses (1) to (6) (5), will be issued and whether persons served by the program remain at 
64.16 	an imminent risk of harm during the investigation period or proceedings. If so, the 
64.17 	commissioner shall issue a suspension order under subdivision 3, paragraph (a), clause (7).
64.18 	(6); or
64.19 	(3) whether the license holder or controlling individual remains the subject of a pending 
64.20 	administrative, civil, or criminal investigation or subject to an administrative or civil action 
64.21 	related to fraud against a program administered by a state or federal agency. If so, the 
64.22 	commissioner shall issue a suspension order under subdivision 3, paragraph (a), clause (6).
64.23 	(c) When the final order under paragraph (b) affirms an immediate suspension, or the 
64.24 	license holder does not submit a timely appeal of the immediate suspension, and a final 
64.25 	licensing sanction is issued under subdivision 3 and the license holder appeals that sanction, 
64.26 	the license holder continues to be prohibited from operation of the program pending a final 
64.27 	commissioner's order under section 245A.08, subdivision 5, regarding the final licensing 
64.28 	sanction.
64.29 	(d) The license holder shall continue to be prohibited from operation of the program 
64.30 	while a suspension order issued under paragraph (b), clause (2) or (3), remains in effect.
64.31 	(e) For suspensions under subdivision 2, paragraph (a), clause (3), the burden of proof 
64.32 	in expedited hearings under this subdivision shall be limited to is met only if the 
64.33 	commissioner's demonstration commissioner demonstrates by a preponderance of the 
64.34 	evidence that a criminal complaint and warrant or summons was issued for the license holder 
65.1 	or controlling individual that was not dismissed, and that the criminal charge is an offense 
65.2 	that involves fraud or theft against a program administered by the commissioner.
65.3 	(f) For suspensions under subdivision 2, paragraph (c), the burden of proof in expedited 
65.4 	hearings under this subdivision is met only if the commissioner demonstrates by a 
65.5 	preponderance of the evidence that the license holder or controlling individual is the subject 
65.6 	of a pending administrative, civil, or criminal investigation or is subject to an administrative 
65.7 	or civil action related to fraud against a program administered by a state or federal agency.

65.8 	Sec. 5. Minnesota Statutes 2025 Supplement, section 245A.07, subdivision 3, is amended 
65.9 	to read:
65.10 		Subd. 3.License suspension, revocation, or fine. (a) The commissioner may suspend 
65.11 	or revoke a license, or impose a fine if:
65.12 	(1) a license holder fails to comply fully with applicable laws or rules including but not 
65.13 	limited to the requirements of this chapter and chapter 245C;
65.14 	(2) a license holder, a controlling individual, or an individual living in the household 
65.15 	where the licensed services are provided or is otherwise subject to a background study has 
65.16 	been disqualified and the disqualification was not set aside and no variance has been granted;
65.17 	(3) a license holder knowingly withholds relevant information from or gives false or 
65.18 	misleading information to the commissioner in connection with an application for a license, 
65.19 	in connection with the background study status of an individual, during an investigation, 
65.20 	or regarding compliance with applicable laws or rules;
65.21 	(4) a license holder is excluded from any program administered by the commissioner 
65.22 	under section 245.095;
65.23 	(5) revocation is required under section 245A.04, subdivision 7, paragraph (d); or
65.24 	(6) suspension is necessary under subdivision 2a, paragraph (b), clause (2) or (3).
65.25 	A license holder who has had a license issued under this chapter suspended, revoked, 
65.26 	or has been ordered to pay a fine must be given notice of the action by certified mail, by 
65.27 	personal service, or through the provider licensing and reporting hub. If mailed, the notice 
65.28 	must be mailed to the address shown on the application or the last known address of the 
65.29 	license holder. The notice must state in plain language the reasons the license was suspended 
65.30 	or revoked, or a fine was ordered.
65.31 	(b) If the license was suspended or revoked, the notice must inform the license holder 
65.32 	of the right to a contested case hearing under chapter 14 and Minnesota Rules, parts 
66.1 	1400.8505 to 1400.8612. The license holder may appeal an order suspending or revoking 
66.2 	a license. The appeal of an order suspending or revoking a license must be made in writing 
66.3 	by certified mail, by personal service, or through the provider licensing and reporting hub. 
66.4 	If mailed, the appeal must be postmarked and sent to the commissioner within ten calendar 
66.5 	days after the license holder receives notice that the license has been suspended or revoked. 
66.6 	If a request is made by personal service, it must be received by the commissioner within 
66.7 	ten calendar days after the license holder received the order. If the order is issued through 
66.8 	the provider hub, the appeal must be received by the commissioner within ten calendar days 
66.9 	from the date the commissioner issued the order through the hub. Except as provided in 
66.10 	subdivision 2a, paragraph (c), if a license holder submits a timely appeal of an order 
66.11 	suspending or revoking a license, the license holder may continue to operate the program 
66.12 	as provided in section 245A.04, subdivision 7, paragraphs (i) and (j), until the commissioner 
66.13 	issues a final order on the suspension or revocation.
66.14 	(c)(1) If the license holder was ordered to pay a fine, the notice must inform the license 
66.15 	holder of the responsibility for payment of fines and the right to a contested case hearing 
66.16 	under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The appeal of an 
66.17 	order to pay a fine must be made in writing by certified mail, by personal service, or through 
66.18 	the provider licensing and reporting hub. If mailed, the appeal must be postmarked and sent 
66.19 	to the commissioner within ten calendar days after the license holder receives notice that 
66.20 	the fine has been ordered. If a request is made by personal service, it must be received by 
66.21 	the commissioner within ten calendar days after the license holder received the order. If the 
66.22 	order is issued through the provider hub, the appeal must be received by the commissioner 
66.23 	within ten calendar days from the date the commissioner issued the order through the hub.
66.24 	(2) The license holder shall pay the fines assessed on or before the payment date specified. 
66.25 	If the license holder fails to fully comply with the order, the commissioner may issue a 
66.26 	second fine or suspend the license until the license holder complies. If the license holder 
66.27 	receives state funds, the state, county, or municipal agencies or departments responsible for 
66.28 	administering the funds shall withhold payments and recover any payments made while the 
66.29 	license is suspended for failure to pay a fine. A timely appeal shall stay payment of the fine 
66.30 	until the commissioner issues a final order.
66.31 	(3) A license holder shall promptly notify the commissioner of human services, in writing, 
66.32 	when a violation specified in the order to forfeit a fine is corrected. If upon reinspection the 
66.33 	commissioner determines that a violation has not been corrected as indicated by the order 
66.34 	to forfeit a fine, the commissioner may issue a second fine. The commissioner shall notify 
66.35 	the license holder by certified mail, by personal service, or through the provider licensing 
67.1 	and reporting hub that a second fine has been assessed. The license holder may appeal the 
67.2 	second fine as provided under this subdivision.
67.3 	(4) Fines shall be assessed as follows:
67.4 	(i) the license holder shall forfeit $1,000 for each determination of maltreatment of a 
67.5 	child under chapter 260E or the maltreatment of a vulnerable adult under section 626.557 
67.6 	for which the license holder is determined responsible for the maltreatment under section 
67.7 	260E.30, subdivision 4, paragraphs (a) and (b), or 626.557, subdivision 9c, paragraph (c);
67.8 	(ii) if the commissioner determines that a determination of maltreatment for which the 
67.9 	license holder is responsible is the result of maltreatment that meets the definition of serious 
67.10 	maltreatment as defined in section 245C.02, subdivision 18, the license holder shall forfeit 
67.11 	$5,000;
67.12 	(iii) the license holder shall forfeit $200 for each occurrence of a violation of law or rule 
67.13 	governing matters of health, safety, or supervision, including but not limited to the provision 
67.14 	of adequate staff-to-child or adult ratios, and failure to comply with background study 
67.15 	requirements under chapter 245C; and
67.16 	(iv) the license holder shall forfeit $100 for each occurrence of a violation of law or rule 
67.17 	other than those subject to a $5,000, $1,000, or $200 fine in items (i) to (iii).
67.18 	For purposes of this section, "occurrence" means each violation identified in the 
67.19 	commissioner's fine order. Fines assessed against a license holder that holds a license to 
67.20 	provide home and community-based services, as identified in section 245D.03, subdivision 
67.21 	1, and a community residential setting or day services facility license under chapter 245D 
67.22 	where the services are provided, may be assessed against both licenses for the same 
67.23 	occurrence, but the combined amount of the fines shall not exceed the amount specified in 
67.24 	this clause for that occurrence.
67.25 	(5) When a fine has been assessed, the license holder may not avoid payment by closing, 
67.26 	selling, or otherwise transferring the licensed program to a third party. In such an event, the 
67.27 	license holder will be personally liable for payment. In the case of a corporation, each 
67.28 	controlling individual is personally and jointly liable for payment.
67.29 	(d) Except for background study violations involving the failure to comply with an order 
67.30 	to immediately remove an individual or an order to provide continuous, direct supervision, 
67.31 	the commissioner shall not issue a fine under paragraph (c) relating to a background study 
67.32 	violation to a license holder who self-corrects a background study violation before the 
67.33 	commissioner discovers the violation. A license holder who has previously exercised the 
68.1 	provisions of this paragraph to avoid a fine for a background study violation may not avoid 
68.2 	a fine for a subsequent background study violation unless at least 365 days have passed 
68.3 	since the license holder self-corrected the earlier background study violation.

68.4 	Sec. 6. Minnesota Statutes 2025 Supplement, section 245A.10, subdivision 4, is amended 
68.5 	to read:
68.6 		Subd. 4.License or certification fee for certain programs. (a)(1) A program licensed 
68.7 	to provide one or more of the home and community-based services and supports identified 
68.8 	under chapter 245D to persons with disabilities or age 65 and older, shall pay an annual 
68.9 	nonrefundable license fee based on revenues derived from the provision of services that 
68.10 	would require licensure under chapter 245D during the calendar year immediately preceding 
68.11 	the year in which the license fee is paid, according to the following schedule:

68.12	License Holder Annual Revenue
		License Fee
	
68.13	less than or equal to $10,000
		$250
	
68.14
68.15	greater than $10,000 but less than or 
equal to $25,000
		$375
	
68.16
68.17	greater than $25,000 but less than or 
equal to $50,000
		$500
	
68.18
68.19	greater than $50,000 but less than or 
equal to $100,000
		$625
	
68.20
68.21	greater than $100,000 but less than or 
equal to $150,000
		$750
	
68.22
68.23	greater than $150,000 but less than or 
equal to $200,000
		$1,000
	
68.24
68.25	greater than $200,000 but less than or 
equal to $250,000
		$1,250
	
68.26
68.27	greater than $250,000 but less than or 
equal to $300,000
		$1,500
	
68.28
68.29	greater than $300,000 but less than or 
equal to $350,000
		$1,750
	
68.30
68.31	greater than $350,000 but less than or 
equal to $400,000
		$2,000
	
68.32
68.33	greater than $400,000 but less than or 
equal to $450,000
		$2,250
	
68.34
68.35	greater than $450,000 but less than or 
equal to $500,000
		$2,500
	
68.36
68.37	greater than $500,000 but less than or 
equal to $600,000
		$2,850
	
68.38
68.39	greater than $600,000 but less than or 
equal to $700,000
		$3,200
	
68.40
68.41	greater than $700,000 but less than or 
equal to $800,000
		$3,600
	
69.1
69.2	greater than $800,000 but less than or 
equal to $900,000
		$3,900
	
69.3
69.4	greater than $900,000 but less than or 
equal to $1,000,000
		$4,250
	
69.5
69.6	greater than $1,000,000 but less than or 
equal to $1,250,000
		$4,550
	
69.7
69.8	greater than $1,250,000 but less than or 
equal to $1,500,000
		$4,900
	
69.969.10
	greater than $1,500,000 but less than or 
equal to $1,750,000
		$5,200
	
69.11
69.12	greater than $1,750,000 but less than or 
equal to $2,000,000
		$5,500
	
69.13
69.14	greater than $2,000,000 but less than or 
equal to $2,500,000
		$5,900
	
69.15
69.16	greater than $2,500,000 but less than or 
equal to $3,000,000
		$6,200
	
69.17
69.18	greater than $3,000,000 but less than or 
equal to $3,500,000
		$6,500
	
69.19
69.20	greater than $3,500,000 but less than or 
equal to $4,000,000
		$7,200
	
69.21
69.22	greater than $4,000,000 but less than or 
equal to $4,500,000
		$7,800
	
69.23
69.24	greater than $4,500,000 but less than or 
equal to $5,000,000
		$9,000
	
69.25
69.26	greater than $5,000,000 but less than or 
equal to $7,500,000
		$10,000
	
69.27
69.28	greater than $7,500,000 but less than or 
equal to $10,000,000
		$14,000
	
69.29
69.30	greater than $10,000,000 but less than or 
equal to $12,500,000
		$18,000
	
69.31
69.32	greater than $12,500,000 but less than or 
equal to $15,000,000
		$25,000
	
69.33
69.34	greater than $15,000,000 but less than or 
equal to $17,500,000
		$28,000
	
69.35
69.36	greater than $17,500,000 but less than or 
equal to $20,000,000
		$32,000
	
69.37
69.38	greater than $20,000,000 but less than or 
equal to $25,000,000
		$36,000
	
69.39
69.40	greater than $25,000,000 but less than or 
equal to $30,000,000
		$45,000
	
69.41
69.42	greater than $30,000,000 but less than or 
equal to $35,000,000
		$55,000
	
69.43	greater than $35,000,000
		$75,000
	
70.1 	(2) If requested, the license holder shall provide the commissioner information to verify 
70.2 	the license holder's annual revenues or other information as needed, including copies of 
70.3 	documents submitted to the Department of Revenue.
70.4 	(3) At each annual renewal, a license holder may elect to pay the highest renewal fee, 
70.5 	and not provide annual revenue information to the commissioner.
70.6 	(4) A license holder that knowingly provides the commissioner incorrect revenue amounts 
70.7 	for the purpose of paying a lower license fee shall be subject to a civil penalty in the amount 
70.8 	of double the fee the provider should have paid.
70.9 	(b) A substance use disorder treatment program licensed under chapter 245G, to provide 
70.10 	substance use disorder treatment shall pay an annual nonrefundable license fee based on 
70.11 	the following schedule:

70.12		Licensed Capacity
	License Fee
	
70.13		1 to 24 persons
	$2,600
	
70.14		25 to 49 persons
	$3,000
	
70.15		50 to 74 persons
	$5,000
	
70.16		75 to 99 persons
	$10,000
	
70.17		100  to 199 persons
	$15,000
	
70.18		200 or more persons
	$20,000
	
70.19 	(c) A detoxification program licensed under Minnesota Rules, parts 9530.6510 to 
70.20 	9530.6590, or a withdrawal management program licensed under chapter 245F shall pay 
70.21 	an annual nonrefundable license fee based on the following schedule:

70.22		Licensed Capacity
	License Fee
	
70.23		1 to 24 persons
	$2,600
	
70.24		25 to 49 persons
	$3,000
	
70.25		50 or more persons
	$5,000
	
70.26 	A detoxification program that also operates a withdrawal management program at the same 
70.27 	location shall only pay one fee based upon the licensed capacity of the program with the 
70.28 	higher overall capacity.
70.29 	(d) A children's residential facility licensed under Minnesota Rules, chapter 2960, to 
70.30 	serve children shall pay an annual nonrefundable license fee based on the following schedule:

70.31		Licensed Capacity
	License Fee
	
70.32		1 to 24 persons
	$1,000
	
70.33		25 to 49 persons
	$1,100
	
70.34		50 to 74 persons
	$1,200
	
71.1		75 to 99 persons
	$1,300
	
71.2		100 or more persons
	$1,400
	
71.3 	(e) A residential facility licensed under section 245I.23 or Minnesota Rules, parts 
71.4 	9520.0500 to 9520.0670, to serve persons with mental illness shall pay an annual 
71.5 	nonrefundable license fee based on the following schedule:

71.6		Licensed Capacity
	License Fee
	
71.7		1 to 24 persons
	$2,600
	
71.8		25  to 49 persons
	$3,000
	
71.9		50 or more persons
	$20,000
	
71.10 	(f) A residential facility licensed under Minnesota Rules, parts 9570.2000 to 9570.3400, 
71.11 	to serve persons with physical disabilities shall pay an annual nonrefundable license fee 
71.12 	based on the following schedule:

71.13		Licensed Capacity
	License Fee
	
71.14		1 to 24 persons
	$450
	
71.15		25 to 49 persons
	$650
	
71.16		50 to 74 persons
	$850
	
71.17		75 to 99 persons
	$1,050
	
71.18		100 or more persons
	$1,250
	
71.19 	(g) A program licensed as an adult day care center licensed under Minnesota Rules, 
71.20 	parts 9555.9600 to 9555.9730, shall pay an annual nonrefundable license fee based on the 
71.21 	following schedule:

71.22		Licensed Capacity
	License Fee
	
71.23		1 to 24 persons
	$2,600
	
71.24		25 to 49 persons
	$3,000
	
71.25		50 to 74 persons
	$5,000
	
71.26		75 to 99 persons
	$10,000
	
71.27		100  to 199 persons
	$15,000
	
71.28		200 or more persons
	$20,000
	
71.29 	(h) A program licensed to provide treatment services to persons with sexual psychopathic 
71.30 	personalities or sexually dangerous persons under Minnesota Rules, parts 9515.3000 to 
71.31 	9515.3110, shall pay an annual nonrefundable license fee of $20,000.
71.32 	(i) A mental health clinic certified under section 245I.20 shall pay an annual 
71.33 	nonrefundable certification fee of $1,550. If the mental health clinic provides services at a 
72.1 	primary location with satellite facilities, the satellite facilities shall be certified with the 
72.2 	primary location without an additional charge.
72.3 	(j) If a program subject to annual fees under paragraph (b) provides services at a primary 
72.4 	location with satellite facilities, the satellite facilities must be licensed with the primary 
72.5 	location and must be subject to an additional $500 annual nonrefundable license fee per 
72.6 	satellite facility.

72.7 	Sec. 7. Minnesota Statutes 2025 Supplement, section 245A.142, subdivision 3, is amended 
72.8 	to read:
72.9 		Subd. 3.Provisional license. (a) Beginning January 1, 2026, the commissioner shall 
72.10 	begin issuing provisional licenses to agencies enrolled under chapter 256B to provide EIDBI 
72.11 	services.
72.12 	(b) Agencies enrolled before July 1, 2025, have until May 31, 2026, to submit an 
72.13 	application for provisional licensure on the forms and in the manner prescribed by the 
72.14 	commissioner.
72.15 	(c) Beginning June 1, 2026, an agency must not operate if it has not submitted an 
72.16 	application for provisional licensure under this section. The commissioner shall disenroll 
72.17 	an agency from providing EIDBI services under chapter 256B if the agency fails to submit 
72.18 	an application for provisional licensure by May 31, 2026.
72.19 	(d) The commissioner must determine whether a provisional license applicant complies 
72.20 	with all applicable rules and laws and either issue a provisional license to the applicant or 
72.21 	deny the application by December 31, 2026.
72.22 	(e) A provisional license is effective until comprehensive EIDBI agency licensure 
72.23 	standards are in effect unless the provisional license is suspended or revoked.
72.24 	(f) Initial provisional license applications are subject to the $2,100 application fee under 
72.25 	section 245A.10, subdivision 3.

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

72.27 	Sec. 8. Minnesota Statutes 2025 Supplement, section 245A.242, subdivision 2, is amended 
72.28 	to read:
72.29 		Subd. 2.Emergency overdose treatment. (a) A license holder must maintain a supply 
72.30 	of opiate antagonists as defined in section 604A.04, subdivision 1, available for emergency 
72.31 	treatment of opioid overdose and. For administration via intramuscular injection, a license 
73.1 	holder must have a written standing order protocol by a physician who is licensed under 
73.2 	chapter 147, advanced practice registered nurse who is licensed under chapter 148, or 
73.3 	physician assistant who is licensed under chapter 147A, that permits the license holder to 
73.4 	maintain a supply of intramuscular injection opiate antagonists on site. A license holder 
73.5 	must require staff to undergo training in the specific mode of administration used at the 
73.6 	program, which may include intranasal administration, intramuscular injection, or both, 
73.7 	before the staff has direct contact, as defined in section 245C.02, subdivision 11, with a 
73.8 	person served by the program.
73.9 	(b) Notwithstanding any requirements to the contrary in Minnesota Rules, chapters 2960
73.10 	and 9530, and Minnesota Statutes, chapters 245F, 245G, and 245I:
73.11 	(1) emergency opiate antagonist medications are not required to be stored in a locked 
73.12 	area and staff and adult clients may carry this medication on them and store it in an unlocked 
73.13 	location;
73.14 	(2) staff persons who only administer emergency opiate antagonist medications only 
73.15 	require the training required by paragraph (a), which any knowledgeable trainer may provide. 
73.16 	The trainer is not required to be a registered nurse or part of an accredited educational 
73.17 	institution; and
73.18 	(3) nonresidential substance use disorder treatment programs that do not administer 
73.19 	client medications beyond emergency opiate antagonist medications are not required to 
73.20 	have the policies and procedures required in section 245G.08, subdivisions 5 and 6, and 
73.21 	must instead describe the program's procedures for administering opiate antagonist 
73.22 	medications in the license holder's description of health care services under section 245G.08, 
73.23 	subdivision 1.

73.24 	Sec. 9. Minnesota Statutes 2024, section 245C.02, subdivision 18, is amended to read:
73.25 		Subd. 18.Serious maltreatment. (a) "Serious maltreatment" means sexual abuse, 
73.26 	maltreatment resulting in death, neglect resulting in serious injury which reasonably requires 
73.27 	the care of a physician, advanced practice registered nurse, or physician assistant whether 
73.28 	or not the care of a physician, advanced practice registered nurse, or physician assistant was 
73.29 	sought, or abuse resulting in serious injury, or financial exploitation of a vulnerable adult 
73.30 	if the value of the funds or property is $1,000 or greater.
73.31 	(b) For purposes of this definition, "care of a physician, advanced practice registered 
73.32 	nurse, or physician assistant" is treatment received or ordered by a physician, physician 
73.33 	assistant, or advanced practice registered nurse, but does not include:
74.1 	(1) diagnostic testing, assessment, or observation;
74.2 	(2) the application of, recommendation to use, or prescription solely for a remedy that 
74.3 	is available over the counter without a prescription; or
74.4 	(3) a prescription solely for a topical antibiotic to treat burns when there is no follow-up 
74.5 	appointment.
74.6 	(c) For purposes of this definition, "abuse resulting in serious injury" means: bruises, 
74.7 	bites, skin laceration, or tissue damage; fractures; dislocations; evidence of internal injuries; 
74.8 	head injuries with loss of consciousness; extensive second-degree or third-degree burns and 
74.9 	other burns for which complications are present; extensive second-degree or third-degree 
74.10 	frostbite and other frostbite for which complications are present; irreversible mobility or 
74.11 	avulsion of teeth; injuries to the eyes; ingestion of foreign substances and objects that are 
74.12 	harmful; near drowning; and heat exhaustion or sunstroke.
74.13 	(d) Serious maltreatment includes neglect when it results in criminal sexual conduct 
74.14 	against a child or vulnerable adult.

74.15 	Sec. 10. Minnesota Statutes 2024, section 245C.03, subdivision 1, is amended to read:
74.16 		Subdivision 1. Programs licensed by the commissioner. (a) The commissioner shall 
74.17 	conduct a background study on:
74.18 	(1) the person or persons applying for a license;
74.19 	(2) an individual age 13 and over living in the household where the licensed program 
74.20 	will be provided who is not receiving licensed services from the program;
74.21 	(3) current or prospective employees of the applicant or license holder who will have 
74.22 	direct contact with persons served by the facility, agency, or program;
74.23 	(4) volunteers or student volunteers who will have direct contact with persons served 
74.24 	by the program to provide program services if the contact is not under the continuous, direct 
74.25 	supervision by an individual listed in clause (1) or (3);
74.26 	(5) an individual age ten to 12 living in the household where the licensed services will 
74.27 	be provided when the commissioner has reasonable cause as defined in section 245C.02, 
74.28 	subdivision 15;
74.29 	(6) an individual who, without providing direct contact services at a licensed program, 
74.30 	may have unsupervised access to children or vulnerable adults receiving services from a 
74.31 	program, when the commissioner has reasonable cause as defined in section 245C.02, 
74.32 	subdivision 15; and
75.1 	(7) all controlling individuals as defined in section 245A.02, subdivision 5a;
75.2 	(8) notwithstanding clause (3), for children's residential facilities and foster residence 
75.3 	settings, any adult working in the facility, whether or not the individual will have direct 
75.4 	contact with persons served by the facility.
75.5 	(b) For child foster care when the license holder resides in the home where foster care 
75.6 	services are provided, a short-term substitute caregiver providing direct contact services for 
75.7 	a child for less than 72 hours of continuous care is not required to receive a background 
75.8 	study under this chapter.
75.9 	(c) This subdivision applies to the following programs that must be licensed under 
75.10 	chapter 245A:
75.11 	(1) adult foster care;
75.12 	(2) children's residential facilities;
75.13 	(3) licensed home and community-based services under chapter 245D;
75.14 	(4) residential mental health programs for adults;
75.15 	(5) substance use disorder treatment programs under chapter 245G;
75.16 	(6) withdrawal management programs under chapter 245F;
75.17 	(7) adult day care centers;
75.18 	(8) family adult day services;
75.19 	(9) detoxification programs;
75.20 	(10) community residential settings;
75.21 	(11) intensive residential treatment services and residential crisis stabilization under 
75.22 	chapter 245I; and
75.23 	(12) treatment programs for persons with sexual psychopathic personality or sexually 
75.24 	dangerous persons, licensed under chapter 245A and according to Minnesota Rules, parts 
75.25 	9515.3000 to 9515.3110.; and
75.26 	(13) children's foster residence settings.

75.27 	EFFECTIVE DATE. This section is effective November 3, 2026.

76.1 	Sec. 11. Minnesota Statutes 2024, section 245C.04, subdivision 1, is amended to read:
76.2 		Subdivision 1.Licensed programs; other child care programs. (a) The commissioner 
76.3 	shall conduct a background study of an individual required to be studied under section 
76.4 	245C.03, subdivision 1, at least upon application for initial license for all license types.
76.5 	(b) The commissioner shall conduct a background study of an individual required to be 
76.6 	studied under section 245C.03, subdivision 1, including a child care background study 
76.7 	subject as defined in section 245C.02, subdivision 6a, in a family child care program, licensed 
76.8 	child care center, certified license-exempt child care center, or legal nonlicensed child care 
76.9 	provider, on a schedule determined by the commissioner. Except as provided in section 
76.10 	245C.05, subdivision 5a, a child care background study must include submission of 
76.11 	fingerprints for a national criminal history record check and a review of the information 
76.12 	under section 245C.08. A background study for a child care program must be repeated 
76.13 	within five years from the most recent study conducted under this paragraph.
76.14 	(c) At reauthorization or when a new background study is needed under section 142E.16, 
76.15 	subdivision 2, for a legal nonlicensed child care provider authorized under chapter 142E:
76.16 	(1) for a background study affiliated with a legal nonlicensed child care provider, the 
76.17 	individual shall provide information required under section 245C.05, subdivision 1, 
76.18 	paragraphs (a), (b), and (d), to the commissioner and be fingerprinted and photographed 
76.19 	under section 245C.05, subdivision 5; and
76.20 	(2) the commissioner shall verify the information received under clause (1) and submit 
76.21 	the request in NETStudy 2.0 to complete the background study.
76.22 	(d) At reapplication for a family child care license:
76.23 	(1) for a background study affiliated with a licensed family child care center, the 
76.24 	individual shall provide information required under section 245C.05, subdivision 1, 
76.25 	paragraphs (a), (b), and (d), to the county agency, and be fingerprinted and photographed 
76.26 	under section 245C.05, subdivision 5;
76.27 	(2) the county agency shall verify the information received under clause (1) and forward 
76.28 	the information to the commissioner and submit the request in NETStudy 2.0 to complete 
76.29 	the background study; and
76.30 	(3) the background study conducted by the commissioner under this paragraph must 
76.31 	include a review of the information required under section 245C.08.
77.1 	(e) The commissioner is not required to conduct a study of an individual at the time of 
77.2 	reapplication for a license if the individual's background study was completed by the 
77.3 	commissioner of human services and the following conditions are met:
77.4 	(1) a study of the individual was conducted either at the time of initial licensure or when 
77.5 	the individual became affiliated with the license holder;
77.6 	(2) the individual has been continuously affiliated with the license holder since the last 
77.7 	study was conducted; and
77.8 	(3) the last study of the individual was conducted on or after October 1, 1995.
77.9 	(f) (e) The commissioner of human services shall conduct a background study of an 
77.10 	individual specified under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6), 
77.11 	who is newly affiliated, or currently affiliated without a background study that was submitted 
77.12 	through the electronic system known as NETStudy 2.0, with a child foster family setting 
77.13 	license holder:
77.14 	(1) the county or private agency shall collect and forward to the commissioner the 
77.15 	information required under section 245C.05, subdivisions 1 and 5, when the child foster 
77.16 	family setting applicant or license holder resides in the home where child foster care services 
77.17 	are provided; and
77.18 	(2) the background study conducted by the commissioner of human services under this 
77.19 	paragraph must include a review of the information required under section 245C.08, 
77.20 	subdivisions 1, 3, and 4.
77.21 	(g) (f) The commissioner shall conduct a background study of an individual specified 
77.22 	under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6), who is newly 
77.23 	affiliated, or currently affiliated without a background study that was submitted through the 
77.24 	electronic system known as NETStudy 2.0, with an adult foster care or family adult day 
77.25 	services and with a family child care license holder or a legal nonlicensed child care provider 
77.26 	authorized under chapter 142E and:
77.27 	(1) except as provided in section 245C.05, subdivision 5a, the county shall collect and 
77.28 	forward to the commissioner the information required under section 245C.05, subdivision 
77.29 	1, paragraphs (a) and (b), and subdivision 5, paragraph (b), for background studies conducted 
77.30 	by the commissioner for all family adult day services, for adult foster care when the adult 
77.31 	foster care license holder resides in the adult foster care residence, and for family child care 
77.32 	and legal nonlicensed child care authorized under chapter 142E;
78.1 	(2) the license holder shall collect and forward to the commissioner the information 
78.2 	required under section 245C.05, subdivisions 1, paragraphs (a) and (b); and 5, paragraphs 
78.3 	(a) and (b), for background studies conducted by the commissioner for adult foster care 
78.4 	when the license holder does not reside in the adult foster care residence; and
78.5 	(3) the background study conducted by the commissioner under this paragraph must 
78.6 	include a review of the information required under section 245C.08, subdivision 1, paragraph 
78.7 	(a), and subdivisions 3 and 4.
78.8 	(h) (g) Applicants for licensure, license holders, and other entities as provided in this 
78.9 	chapter must submit completed background study requests to the commissioner using the 
78.10 	electronic system known as NETStudy 2.0 before individuals specified in section 245C.03, 
78.11 	subdivision 1, begin positions allowing direct contact in any licensed program.
78.12 	(i) (h) For an individual who is not on the entity's active roster, the entity must initiate 
78.13 	a new background study through NETStudy when:
78.14 	(1) an individual returns to a position requiring a background study following an absence 
78.15 	of 120 or more consecutive days; or
78.16 	(2) a program that discontinued providing licensed direct contact services for 120 or 
78.17 	more consecutive days begins to provide direct contact licensed services again.
78.18 	The license holder shall maintain a copy of the notification provided to the commissioner 
78.19 	under this paragraph in the program's files. If the individual's disqualification was previously 
78.20 	set aside for the license holder's program and the new background study results in no new 
78.21 	information that indicates the individual may pose a risk of harm to persons receiving 
78.22 	services from the license holder, the previous set-aside shall remain in effect.
78.23 	(j) (i) For purposes of this section, a physician licensed under chapter 147, advanced 
78.24 	practice registered nurse licensed under chapter 148, or physician assistant licensed under 
78.25 	chapter 147A is considered to be continuously affiliated upon the license holder's receipt 
78.26 	from the commissioner of health or human services of the physician's, advanced practice 
78.27 	registered nurse's, or physician assistant's background study results.
78.28 	(k) (j) For purposes of family child care, a substitute caregiver must receive repeat 
78.29 	background studies at the time of each license renewal.
78.30 	(l) (k) A repeat background study at the time of license renewal is not required if the 
78.31 	family child care substitute caregiver's background study was completed by the commissioner 
78.32 	on or after October 1, 2017, and the substitute caregiver is on the license holder's active 
78.33 	roster in NETStudy 2.0.
79.1 	(m) (l) Before and after school programs authorized under chapter 142E, are exempt 
79.2 	from the background study requirements under section 123B.03, for an employee for whom 
79.3 	a background study under this chapter has been completed.

79.4 	Sec. 12. Minnesota Statutes 2025 Supplement, section 245C.07, is amended to read:
79.5 	245C.07 STUDY SUBJECT AFFILIATED WITH MULTIPLE FACILITIES.
79.6 	(a) Subject to the conditions in paragraph (d), when a license holder, applicant, or other 
79.7 	entity owns multiple programs or services that are licensed by the Department of Human 
79.8 	Services; Department of Children, Youth, and Families; Department of Health; or Department 
79.9 	of Corrections, only one background study is required for an individual who provides direct 
79.10 	contact services in one or more of the licensed programs or services if:
79.11 	(1) the license holder designates one individual with one address and telephone number 
79.12 	as the person to receive sensitive background study information for the multiple licensed 
79.13 	programs or services that depend on the same background study; and
79.14 	(2) the individual designated to receive the sensitive background study information is 
79.15 	capable of determining, upon request of the department, whether a background study subject 
79.16 	is providing direct contact services in one or more of the license holder's programs or services 
79.17 	and, if so, at which location or locations.
79.18 	(b) When a license holder maintains background study compliance for multiple licensed 
79.19 	programs according to paragraph (a), and one or more of the licensed programs closes, the 
79.20 	license holder shall immediately notify the commissioner which staff must be transferred 
79.21 	to an active license so that the background studies can be electronically paired with the 
79.22 	license holder's active program.
79.23 	(c) When a background study is being initiated by a licensed program or service or a 
79.24 	foster care provider that is also licensed under chapter 144G, a study subject affiliated with 
79.25 	multiple licensed programs or services may attach to the background study form a cover 
79.26 	letter indicating the additional names of the programs or services, addresses, and background 
79.27 	study identification numbers.
79.28 	When the commissioner receives a notice, the commissioner shall notify each program 
79.29 	or service identified by the background study subject of the study results.
79.30 	The background study notice the commissioner sends to the subsequent agencies shall 
79.31 	satisfy those programs' or services' responsibilities for initiating a background study on that 
79.32 	individual.
80.1 	(d) If a background study was conducted on an individual related to child foster care 
80.2 	and the requirements under paragraph (a) are met, the background study is transferable 
80.3 	across all licensed programs. If a background study was conducted on an individual under 
80.4 	a license other than child foster care and the requirements under paragraph (a) are met, the 
80.5 	background study is transferable to all licensed programs except child foster care.
80.6 	(e) The provisions of this section that allow a single background study in one or more 
80.7 	licensed programs or services do not apply to background studies submitted by adoption 
80.8 	agencies, supplemental nursing services agencies, personnel pool agencies, educational 
80.9 	programs, professional services agencies, temporary personnel agencies, and unlicensed 
80.10 	personal care provider organizations.
80.11 	(f) For an entity operating under NETStudy 2.0, the entity's active roster must be the 
80.12 	system used to document when a background study subject is affiliated with multiple entities. 
80.13 	For a background study to be transferable:
80.14 	(1) the background study subject must be on and moving to a roster for which the person 
80.15 	designated to receive sensitive background study information is the same; and
80.16 	(2) the same entity must own or legally control both the roster from which the transfer 
80.17 	is occurring and the roster to which the transfer is occurring. For an entity that holds or 
80.18 	controls multiple licenses, or unlicensed personal care provider organizations, there must 
80.19 	be a common highest level entity that has a legally identifiable structure that can be verified 
80.20 	through records available from the secretary of state.

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

80.22 	Sec. 13. Minnesota Statutes 2025 Supplement, section 245C.13, subdivision 2, is amended 
80.23 	to read:
80.24 		Subd. 2.Activities pending completion of background study. The subject of a 
80.25 	background study may not perform any activity requiring a background study under 
80.26 	paragraph (c) until the commissioner has issued one of the notices under paragraph (a).
80.27 	(a) Notices from the commissioner required prior to activity under paragraph (c) include:
80.28 	(1) a notice of the study results under section 245C.17 stating that:
80.29 	(i) the individual is not disqualified; or
80.30 	(ii) more time is needed to complete the study but the individual is not required to be 
80.31 	removed from direct contact or access to people receiving services prior to completion of 
80.32 	the study as provided under section 245C.17, subdivision 1, paragraph (b) or (c). The notice 
81.1 	that more time is needed to complete the study must also indicate whether the individual is 
81.2 	required to be under continuous direct supervision prior to completion of the background 
81.3 	study. When more time is necessary to complete a background study of an individual 
81.4 	affiliated with a Title IV-E eligible children's residential facility or foster residence setting, 
81.5 	the individual may not work in the facility or setting regardless of whether or not the 
81.6 	individual is supervised;
81.7 	(2) a notice that a disqualification has been set aside under section 245C.23; or
81.8 	(3) a notice that a variance has been granted related to the individual under section 
81.9 	245C.30.
81.10 	(b) For a child care background study affiliated with a licensed child care center or 
81.11 	certified license-exempt child care center subject required to submit fingerprints for a 
81.12 	national criminal history check, except as provided in section 245C.05, subdivision 5a, the 
81.13 	notice sent under paragraph (a), clause (1), item (ii), must not be issued until the 
81.14 	commissioner receives a qualifying result for the individual for the fingerprint-based national 
81.15 	criminal history record check or the fingerprint-based criminal history information from 
81.16 	the Bureau of Criminal Apprehension. The notice must require the individual to be under 
81.17 	continuous direct supervision prior to completion of the remainder of the background study 
81.18 	except as permitted in subdivision 3.
81.19 	(c) Activities prohibited prior to receipt of notice under paragraph (a) include:
81.20 	(1) being issued a license;
81.21 	(2) living in the household where the licensed program will be provided;
81.22 	(3) providing direct contact services to persons served by a program unless the subject 
81.23 	is under continuous direct supervision;
81.24 	(4) having access to persons receiving services if the background study was completed 
81.25 	under section 144.057, subdivision 1, or 245C.03, subdivision 1, paragraph (a), clause (2), 
81.26 	(5), or (6), unless the subject is under continuous direct supervision;
81.27 	(5) for licensed child care centers and certified license-exempt child care centers a child 
81.28 	care background study subject, providing direct contact services to persons served by the 
81.29 	program performing any act listed in section 245C.02, subdivision 6a, unless the study is 
81.30 	being renewed under section 245C.04, subdivision 1, paragraph (b), and it has been less 
81.31 	than five years since the child care background study subject was previously disqualified 
81.32 	or provided notice under paragraph (a), clause (1), item (i);
82.1 	(6) for children's residential facilities or foster residence settings, working in the facility 
82.2 	or setting;
82.3 	(7) for background studies affiliated with a personal care provider organization, except 
82.4 	as provided in section 245C.03, subdivision 3b, before a personal care assistant provides 
82.5 	services, the personal care assistance provider agency must initiate a background study of 
82.6 	the personal care assistant under this chapter and the personal care assistance provider 
82.7 	agency must have received a notice from the commissioner that the personal care assistant 
82.8 	is:
82.9 	(i) not disqualified under section 245C.14; or
82.10 	(ii) disqualified, but the personal care assistant has received a set aside of the 
82.11 	disqualification under section 245C.22; or
82.12 	(8) for background studies affiliated with an early intensive developmental and behavioral 
82.13 	intervention provider, before an individual provides services, the early intensive 
82.14 	developmental and behavioral intervention provider must initiate a background study for 
82.15 	the individual under this chapter and the early intensive developmental and behavioral 
82.16 	intervention provider must have received a notice from the commissioner that the individual 
82.17 	is:
82.18 	(i) not disqualified under section 245C.14; or
82.19 	(ii) disqualified, but the individual has received a set-aside of the disqualification under 
82.20 	section 245C.22.

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

82.22 	Sec. 14. Minnesota Statutes 2024, section 245C.15, subdivision 2, is amended to read:
82.23 		Subd. 2.15-year disqualification. (a) An individual is disqualified under section 245C.14 
82.24 	if: (1) less than 15 years have passed since the discharge of the sentence imposed, if any, 
82.25 	for the offense; and (2) the individual has committed a felony-level violation of any of the 
82.26 	following offenses: sections 152.021, subdivision 1 or 2b, (aggravated controlled substance 
82.27 	crime in the first degree; sale crimes); 152.022, subdivision 1 (controlled substance crime 
82.28 	in the second degree; sale crimes); 152.023, subdivision 1 (controlled substance crime in 
82.29 	the third degree; sale crimes); 152.024, subdivision 1 (controlled substance crime in the 
82.30 	fourth degree; sale crimes); 256.98 (wrongfully obtaining assistance); 268.182 (fraud); 
82.31 	393.07, subdivision 10, paragraph (c) (federal SNAP fraud); 518B.01, subdivision 14 
82.32 	(violation of an order for protection); 609.165 (felon ineligible to possess firearm); 609.2112, 
82.33 	609.2113, or 609.2114 (criminal vehicular homicide or injury); 609.215 (suicide); 609.223 
83.1 	or 609.2231 (assault in the third or fourth degree); repeat offenses under 609.224 (assault 
83.2 	in the fifth degree); 609.229 (crimes committed for benefit of a gang); 609.2325 (criminal 
83.3 	abuse of a vulnerable adult); 609.2334 (violation of an order for protection against financial 
83.4 	exploitation of a vulnerable adult); 609.2335 (financial exploitation of a vulnerable adult); 
83.5 	609.235 (use of drugs to injure or facilitate crime); 609.24 (simple robbery); 609.247, 
83.6 	subdivision 4 (carjacking in the third degree); 609.255 (false imprisonment); 609.2664
83.7 	(manslaughter of an unborn child in the first degree); 609.2665 (manslaughter of an unborn 
83.8 	child in the second degree); 609.267 (assault of an unborn child in the first degree); 609.2671
83.9 	(assault of an unborn child in the second degree); 609.268 (injury or death of an unborn 
83.10 	child in the commission of a crime); 609.27 (coercion); 609.275 (attempt to coerce); 609.466
83.11 	(medical assistance fraud); 609.495 (aiding an offender); 609.498, subdivision 1 or 1b 
83.12 	(aggravated first-degree or first-degree tampering with a witness); 609.52 (theft); 609.521
83.13 	(possession of shoplifting gear); 609.522 (organized retail theft); 609.525 (bringing stolen 
83.14 	goods into Minnesota); 609.527 (identity theft); 609.53 (receiving stolen property); 609.535
83.15 	(issuance of dishonored checks); 609.542 (illegal remunerations); 609.562 (arson in the 
83.16 	second degree); 609.563 (arson in the third degree); 609.582 (burglary); 609.59 (possession 
83.17 	of burglary tools); 609.611 (insurance fraud); 609.625 (aggravated forgery); 609.63 (forgery); 
83.18 	609.631 (check forgery; offering a forged check); 609.635 (obtaining signature by false 
83.19 	pretense); 609.66 (dangerous weapons); 609.67 (machine guns and short-barreled shotguns); 
83.20 	609.687 (adulteration); 609.71 (riot); 609.713 (terroristic threats); 609.746 (interference 
83.21 	with privacy); 609.82 (fraud in obtaining credit); 609.821 (financial transaction card fraud); 
83.22 	617.23 (indecent exposure), not involving a minor; repeat offenses under 617.241 (obscene 
83.23 	materials and performances; distribution and exhibition prohibited; penalty); or 624.713
83.24 	(certain persons not to possess firearms).
83.25 	(b) An individual is disqualified under section 245C.14 if less than 15 years has passed 
83.26 	since the individual's aiding and abetting, attempt, or conspiracy to commit any of the 
83.27 	offenses listed in paragraph (a), as each of these offenses is defined in Minnesota Statutes.
83.28 	(c) An individual is disqualified under section 245C.14 if less than 15 years has passed 
83.29 	since the termination of the individual's parental rights under section 260C.301, subdivision 
83.30 	1, paragraph (b), or subdivision 3.
83.31 	(d) An individual is disqualified under section 245C.14 if less than 15 years has passed 
83.32 	since the discharge of the sentence imposed for an offense in any other state or country, the 
83.33 	elements of which are substantially similar to the elements of the offenses listed in paragraph 
83.34 	(a) or since the termination of parental rights in any other state or country, the elements of 
83.35 	which are substantially similar to the elements listed in paragraph (c).
84.1 	(e) If the individual studied commits one of the offenses listed in paragraph (a), but the 
84.2 	sentence or level of offense is a gross misdemeanor or misdemeanor, the individual is 
84.3 	disqualified but the disqualification look-back period for the offense is the period applicable 
84.4 	to the gross misdemeanor or misdemeanor disposition.
84.5 	(f) When a disqualification is based on a judicial determination other than a conviction, 
84.6 	the disqualification period begins from the date of the court order. When a disqualification 
84.7 	is based on an admission, the disqualification period begins from the date of an admission 
84.8 	in court. When a disqualification is based on an Alford Plea, the disqualification period 
84.9 	begins from the date the Alford Plea is entered in court. When a disqualification is based 
84.10 	on a preponderance of evidence of a disqualifying act, the disqualification date begins from 
84.11 	the date of the dismissal, the date of discharge of the sentence imposed for a conviction for 
84.12 	a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.

84.13 	Sec. 15. Minnesota Statutes 2024, section 245C.15, subdivision 3, is amended to read:
84.14 		Subd. 3.Ten-year disqualification. (a) An individual is disqualified under section 
84.15 	245C.14 if: (1) less than ten years have passed since the discharge of the sentence imposed, 
84.16 	if any, for the offense; and (2) the individual has committed a gross misdemeanor-level 
84.17 	violation of any of the following offenses: sections 256.98 (wrongfully obtaining assistance); 
84.18 	260B.425 (criminal jurisdiction for contributing to status as a juvenile petty offender or 
84.19 	delinquency); 260C.425 (criminal jurisdiction for contributing to need for protection or 
84.20 	services); 268.182 (fraud); 393.07, subdivision 10, paragraph (c) (federal SNAP fraud); 
84.21 	609.2112, 609.2113, or 609.2114 (criminal vehicular homicide or injury); 609.221 or 609.222 
84.22 	(assault in the first or second degree); 609.223 or 609.2231 (assault in the third or fourth 
84.23 	degree); 609.224 (assault in the fifth degree); 609.224, subdivision 2, paragraph (c) (assault 
84.24 	in the fifth degree by a caregiver against a vulnerable adult); 609.2242 and 609.2243 
84.25 	(domestic assault); 609.23 (mistreatment of persons confined); 609.231 (mistreatment of 
84.26 	residents or patients); 609.2325 (criminal abuse of a vulnerable adult); 609.233 (criminal 
84.27 	neglect of a vulnerable adult); 609.2334 (violation of an order for protection against financial 
84.28 	exploitation of a vulnerable adult); 609.2335 (financial exploitation of a vulnerable adult); 
84.29 	609.234 (failure to report maltreatment of a vulnerable adult); 609.265 (abduction); 609.275 
84.30 	(attempt to coerce); 609.324, subdivision 1a (other prohibited acts; minor engaged in 
84.31 	prostitution); 609.33 (disorderly house); 609.377 (malicious punishment of a child); 609.378 
84.32 	(neglect or endangerment of a child); 609.466 (medical assistance fraud); 609.52 (theft); 
84.33 	609.522 (organized retail theft); 609.525 (bringing stolen goods into Minnesota); 609.527 
84.34 	(identity theft); 609.53 (receiving stolen property); 609.535 (issuance of dishonored checks); 
84.35 	609.582 (burglary); 609.59 (possession of burglary tools); 609.611 (insurance fraud); 609.631 
85.1 	(check forgery; offering a forged check); 609.66 (dangerous weapons); 609.71 (riot); 609.72, 
85.2 	subdivision 3 (disorderly conduct against a vulnerable adult); 609.746 (interference with 
85.3 	privacy); 609.749, subdivision 2 (harassment); 609.82 (fraud in obtaining credit); 609.821
85.4 	(financial transaction card fraud); 617.23 (indecent exposure), not involving a minor; 617.241
85.5 	(obscene materials and performances); 617.243 (indecent literature, distribution); 617.293
85.6 	(harmful materials; dissemination and display to minors prohibited); or Minnesota Statutes 
85.7 	2012, section 609.21; or violation of an order for protection under section 518B.01, 
85.8 	subdivision 14.
85.9 	(b) An individual is disqualified under section 245C.14 if less than ten years has passed 
85.10 	since the individual's aiding and abetting, attempt, or conspiracy to commit any of the 
85.11 	offenses listed in paragraph (a), as each of these offenses is defined in Minnesota Statutes.
85.12 	(c) An individual is disqualified under section 245C.14 if less than ten years has passed 
85.13 	since the discharge of the sentence imposed for an offense in any other state or country, the 
85.14 	elements of which are substantially similar to the elements of any of the offenses listed in 
85.15 	paragraph (a).
85.16 	(d) If the individual studied commits one of the offenses listed in paragraph (a), but the 
85.17 	sentence or level of offense is a misdemeanor disposition, the individual is disqualified but 
85.18 	the disqualification lookback period for the offense is the period applicable to misdemeanors.
85.19 	(e) When a disqualification is based on a judicial determination other than a conviction, 
85.20 	the disqualification period begins from the date of the court order. When a disqualification 
85.21 	is based on an admission, the disqualification period begins from the date of an admission 
85.22 	in court. When a disqualification is based on an Alford Plea, the disqualification period 
85.23 	begins from the date the Alford Plea is entered in court. When a disqualification is based 
85.24 	on a preponderance of evidence of a disqualifying act, the disqualification date begins from 
85.25 	the date of the dismissal, the date of discharge of the sentence imposed for a conviction for 
85.26 	a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.

85.27 	Sec. 16. Minnesota Statutes 2024, section 245C.15, subdivision 4, is amended to read:
85.28 		Subd. 4.Seven-year disqualification. (a) An individual is disqualified under section 
85.29 	245C.14 if: (1) less than seven years has passed since the discharge of the sentence imposed, 
85.30 	if any, for the offense; and (2) the individual has committed a misdemeanor-level violation 
85.31 	of any of the following offenses: sections 256.98 (wrongfully obtaining assistance); 260B.425 
85.32 	(criminal jurisdiction for contributing to status as a juvenile petty offender or delinquency); 
85.33 	260C.425 (criminal jurisdiction for contributing to need for protection or services); 268.182 
85.34 	(fraud); 393.07, subdivision 10, paragraph (c) (federal SNAP fraud); 609.2112, 609.2113, 
86.1 	or 609.2114 (criminal vehicular homicide or injury); 609.221 (assault in the first degree); 
86.2 	609.222 (assault in the second degree); 609.223 (assault in the third degree); 609.2231 
86.3 	(assault in the fourth degree); 609.224 (assault in the fifth degree); 609.2242 (domestic 
86.4 	assault); 609.2334 (violation of an order for protection against financial exploitation of a 
86.5 	vulnerable adult); 609.2335 (financial exploitation of a vulnerable adult); 609.234 (failure 
86.6 	to report maltreatment of a vulnerable adult); 609.2672 (assault of an unborn child in the 
86.7 	third degree); 609.27 (coercion); violation of an order for protection under 609.3232 
86.8 	(protective order authorized; procedures; penalties); 609.466 (medical assistance fraud); 
86.9 	609.52 (theft); 609.522 (organized retail theft); 609.525 (bringing stolen goods into 
86.10 	Minnesota); 609.527 (identity theft); 609.53 (receiving stolen property); 609.535 (issuance 
86.11 	of dishonored checks); 609.611 (insurance fraud); 609.66 (dangerous weapons); 609.665
86.12 	(spring guns); 609.746 (interference with privacy); 609.79 (obscene or harassing telephone 
86.13 	calls); 609.795 (letter, telegram, or package; opening; harassment); 609.82 (fraud in obtaining 
86.14 	credit); 609.821 (financial transaction card fraud); 617.23 (indecent exposure), not involving 
86.15 	a minor; 617.293 (harmful materials; dissemination and display to minors prohibited); or 
86.16 	Minnesota Statutes 2012, section 609.21; or violation of an order for protection under section 
86.17 	518B.01 (Domestic Abuse Act).
86.18 	(b) An individual is disqualified under section 245C.14 if less than seven years has 
86.19 	passed since a determination or disposition of the individual's:
86.20 	(1) failure to make required reports under section 260E.06 or 626.557, subdivision 3, 
86.21 	for incidents in which: (i) the final disposition under section 626.557 or chapter 260E was 
86.22 	substantiated maltreatment, and (ii) the maltreatment was recurring or serious; or
86.23 	(2) substantiated serious or recurring maltreatment of a minor under chapter 260E, a 
86.24 	vulnerable adult under section 626.557, or serious or recurring maltreatment in any other 
86.25 	state, the elements of which are substantially similar to the elements of maltreatment under 
86.26 	section 626.557 or chapter 260E for which: (i) there is a preponderance of evidence that 
86.27 	the maltreatment occurred, and (ii) the subject was responsible for the maltreatment.
86.28 	(c) An individual is disqualified under section 245C.14 if less than seven years has 
86.29 	passed since the individual's aiding and abetting, attempt, or conspiracy to commit any of 
86.30 	the offenses listed in paragraphs (a) and (b), as each of these offenses is defined in Minnesota 
86.31 	Statutes.
86.32 	(d) An individual is disqualified under section 245C.14 if less than seven years has 
86.33 	passed since the discharge of the sentence imposed for an offense in any other state or 
87.1 	country, the elements of which are substantially similar to the elements of any of the offenses 
87.2 	listed in paragraphs (a) and (b).
87.3 	(e) When a disqualification is based on a judicial determination other than a conviction, 
87.4 	the disqualification period begins from the date of the court order. When a disqualification 
87.5 	is based on an admission, the disqualification period begins from the date of an admission 
87.6 	in court. When a disqualification is based on an Alford Plea, the disqualification period 
87.7 	begins from the date the Alford Plea is entered in court. When a disqualification is based 
87.8 	on a preponderance of evidence of a disqualifying act, the disqualification date begins from 
87.9 	the date of the dismissal, the date of discharge of the sentence imposed for a conviction for 
87.10 	a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.
87.11 	(f) An individual is disqualified under section 245C.14 if less than seven years has passed 
87.12 	since the individual was disqualified under section 256.98, subdivision 8.

87.13 	Sec. 17. Minnesota Statutes 2025 Supplement, section 245C.15, subdivision 4a, is amended 
87.14 	to read:
87.15 		Subd. 4a.Licensed family foster setting disqualifications. (a) Notwithstanding 
87.16 	subdivisions 1 to 4, 4b, and 4c, for a background study affiliated with a licensed family 
87.17 	foster setting, regardless of how much time has passed, an individual is disqualified under 
87.18 	section 245C.14 if the individual committed an act that resulted in a felony-level conviction 
87.19 	for sections: 609.185 (murder in the first degree); 609.19 (murder in the second degree); 
87.20 	609.195 (murder in the third degree); 609.20 (manslaughter in the first degree); 609.205
87.21 	(manslaughter in the second degree); 609.2112 (criminal vehicular homicide); 609.221
87.22 	(assault in the first degree); 609.223, subdivision 2 (assault in the third degree, past pattern 
87.23 	of child abuse); 609.223, subdivision 3 (assault in the third degree, victim under four); a 
87.24 	felony offense under sections 609.2242 and 609.2243 (domestic assault, spousal abuse, 
87.25 	child abuse or neglect, or a crime against children); 609.2247 (domestic assault by 
87.26 	strangulation); 609.2325 (criminal abuse of a vulnerable adult resulting in the death of a 
87.27 	vulnerable adult); 609.245 (aggravated robbery); 609.247, subdivision 2 or 3 (carjacking 
87.28 	in the first or second degree); 609.25 (kidnapping); 609.255 (false imprisonment); 609.2661
87.29 	(murder of an unborn child in the first degree); 609.2662 (murder of an unborn child in the 
87.30 	second degree); 609.2663 (murder of an unborn child in the third degree); 609.2664
87.31 	(manslaughter of an unborn child in the first degree); 609.2665 (manslaughter of an unborn 
87.32 	child in the second degree); 609.267 (assault of an unborn child in the first degree); 609.2671
87.33 	(assault of an unborn child in the second degree); 609.268 (injury or death of an unborn 
87.34 	child in the commission of a crime); 609.322, subdivision 1 (solicitation, inducement, and 
88.1 	promotion of prostitution; sex trafficking in the first degree); 609.324, subdivision 1 (other 
88.2 	prohibited acts; engaging in, hiring, or agreeing to hire minor to engage in prostitution); 
88.3 	609.342 (criminal sexual conduct in the first degree); 609.343 (criminal sexual conduct in 
88.4 	the second degree); 609.344 (criminal sexual conduct in the third degree); 609.345 (criminal 
88.5 	sexual conduct in the fourth degree); 609.3451 (criminal sexual conduct in the fifth degree); 
88.6 	609.3453 (criminal sexual predatory conduct); 609.3458 (sexual extortion); 609.352
88.7 	(solicitation of children to engage in sexual conduct); 609.377 (malicious punishment of a 
88.8 	child); 609.3775 (child torture); 609.378 (neglect or endangerment of a child); 609.561
88.9 	(arson in the first degree); 609.582, subdivision 1 (burglary in the first degree); 609.746
88.10 	(interference with privacy); 617.23 (indecent exposure); 617.246 (use of minors in sexual 
88.11 	performance prohibited); or 617.247 (possession of child sexual abuse material).
88.12 	(b) Notwithstanding subdivisions 1 to 4, 4b, and 4c, for the purposes of a background 
88.13 	study affiliated with a licensed family foster setting, an individual is disqualified under 
88.14 	section 245C.14, regardless of how much time has passed, if the individual:
88.15 	(1) committed an action under paragraph (e) that resulted in death or involved sexual 
88.16 	abuse, as defined in section 260E.03, subdivision 20;
88.17 	(2) committed an act that resulted in a gross misdemeanor-level conviction for section 
88.18 	609.3451 (criminal sexual conduct in the fifth degree);
88.19 	(3) committed an act against or involving a minor that resulted in a felony-level conviction 
88.20 	for: section 609.222 (assault in the second degree); 609.223, subdivision 1 (assault in the 
88.21 	third degree); 609.2231 (assault in the fourth degree); or 609.224 (assault in the fifth degree); 
88.22 	or
88.23 	(4) committed an act that resulted in a misdemeanor or gross misdemeanor-level 
88.24 	conviction for section 617.293 (dissemination and display of harmful materials to minors).
88.25 	(c) Notwithstanding subdivisions 1 to 4, 4b, and 4c, for a background study affiliated 
88.26 	with a licensed family foster setting, an individual is disqualified under section 245C.14 if 
88.27 	fewer than 20 years have passed since the termination of the individual's parental rights 
88.28 	under section 260C.301, subdivision 1, paragraph (b), or if the individual consented to a 
88.29 	termination of parental rights under section 260C.301, subdivision 1, paragraph (a), to settle 
88.30 	a petition to involuntarily terminate parental rights. An individual is disqualified under 
88.31 	section 245C.14 if fewer than 20 years have passed since the termination of the individual's 
88.32 	parental rights in any other state or country, where the conditions for the individual's 
88.33 	termination of parental rights are substantially similar to the conditions in section 260C.301, 
88.34 	subdivision 1, paragraph (b).
89.1 	(d) Notwithstanding subdivisions 1 to 4, 4b, and 4c, for a background study affiliated 
89.2 	with a licensed family foster setting, an individual is disqualified under section 245C.14 if 
89.3 	fewer than five years have passed since a felony-level violation for sections: 152.021
89.4 	(controlled substance crime in the first degree); 152.022 (controlled substance crime in the 
89.5 	second degree); 152.023 (controlled substance crime in the third degree); 152.024 (controlled 
89.6 	substance crime in the fourth degree); 152.025 (controlled substance crime in the fifth 
89.7 	degree); 152.0261 (importing controlled substances across state borders); 152.0262, 
89.8 	subdivision 1, paragraph (b) (possession of substance with intent to manufacture 
89.9 	methamphetamine); 152.027, subdivision 6, paragraph (c) (sale or possession of synthetic 
89.10 	cannabinoids); 152.096 (conspiracies prohibited); 152.097 (simulated controlled substances); 
89.11 	152.136 (anhydrous ammonia; prohibited conduct; criminal penalties; civil liabilities); 
89.12 	152.137 (fentanyl- and methamphetamine-related crimes involving children or vulnerable 
89.13 	adults); 169A.24 (felony first-degree driving while impaired); 243.166 (violation of predatory 
89.14 	offender registration requirements); 609.2113 (criminal vehicular operation; bodily harm); 
89.15 	609.2114 (criminal vehicular operation; unborn child); 609.228 (great bodily harm caused 
89.16 	by distribution of drugs); 609.2325 (criminal abuse of a vulnerable adult not resulting in 
89.17 	the death of a vulnerable adult); 609.233 (criminal neglect); 609.235 (use of drugs to injure 
89.18 	or facilitate a crime); 609.24 (simple robbery); 609.247, subdivision 4 (carjacking in the 
89.19 	third degree); 609.322, subdivision 1a (solicitation, inducement, and promotion of 
89.20 	prostitution; sex trafficking in the second degree); 609.498, subdivision 1 (tampering with 
89.21 	a witness in the first degree); 609.498, subdivision 1b (aggravated first-degree witness 
89.22 	tampering); 609.562 (arson in the second degree); 609.563 (arson in the third degree); 
89.23 	609.582, subdivision 2 (burglary in the second degree); 609.66 (felony dangerous weapons); 
89.24 	609.687 (adulteration); 609.713 (terroristic threats); 609.749, subdivision 3, 4, or 5 
89.25 	(felony-level harassment or stalking); 609.855, subdivision 5 (shooting at or in a public 
89.26 	transit vehicle or facility); or 624.713 (certain people not to possess firearms).
89.27 	(e) Notwithstanding subdivisions 1 to 4, 4b, and 4c, except as provided in paragraph 
89.28 	(a), for a background study affiliated with a licensed family child foster care license, an 
89.29 	individual is disqualified under section 245C.14 if fewer than five years have passed since:
89.30 	(1) a felony-level violation for an act not against or involving a minor that constitutes: 
89.31 	section 609.222 (assault in the second degree); 609.223, subdivision 1 (assault in the third 
89.32 	degree); 609.2231 (assault in the fourth degree); or 609.224, subdivision 4 (assault in the 
89.33 	fifth degree);
89.34 	(2) a violation of an order for protection under section 518B.01, subdivision 14;
90.1 	(3) a determination or disposition of the individual's failure to make required reports 
90.2 	under section 260E.06 or 626.557, subdivision 3, for incidents in which the final disposition 
90.3 	under chapter 260E or section 626.557 was substantiated maltreatment and the maltreatment 
90.4 	was recurring or serious;
90.5 	(4) a determination or disposition of the individual's substantiated serious or recurring 
90.6 	maltreatment of a minor under chapter 260E, a vulnerable adult under section 626.557, or 
90.7 	serious or recurring maltreatment in any other state, the elements of which are substantially 
90.8 	similar to the elements of maltreatment under chapter 260E or section 626.557 and meet 
90.9 	the definition of serious maltreatment or recurring maltreatment;
90.10 	(5) a gross misdemeanor-level violation for sections: 609.224, subdivision 2 (assault in 
90.11 	the fifth degree); 609.2242 and 609.2243 (domestic assault); 609.233 (criminal neglect); 
90.12 	609.377 (malicious punishment of a child); 609.378 (neglect or endangerment of a child); 
90.13 	609.746 (interference with privacy); 609.749 (stalking); or 617.23 (indecent exposure); or
90.14 	(6) committing an act against or involving a minor that resulted in a misdemeanor-level 
90.15 	violation of section 609.224, subdivision 1 (assault in the fifth degree).
90.16 	(f) For purposes of this subdivision, the disqualification begins from:
90.17 	(1) the date of the alleged violation, if the individual was not convicted;
90.18 	(2) the date of conviction, if the individual was convicted of the violation but not 
90.19 	committed to the custody of the commissioner of corrections; or
90.20 	(3) the date of release from prison, if the individual was convicted of the violation and 
90.21 	committed to the custody of the commissioner of corrections.
90.22 	Notwithstanding clause (3), if the individual is subsequently reincarcerated for a violation 
90.23 	of the individual's supervised release, the disqualification begins from the date of release 
90.24 	from the subsequent incarceration.
90.25 	(g) An individual's aiding and abetting, attempt, or conspiracy to commit any of the 
90.26 	offenses listed in paragraphs (a) and (b), as each of these offenses is defined in Minnesota 
90.27 	Statutes, permanently disqualifies the individual under section 245C.14. An individual is 
90.28 	disqualified under section 245C.14 if fewer than five years have passed since the individual's 
90.29 	aiding and abetting, attempt, or conspiracy to commit any of the offenses listed in paragraphs 
90.30 	(d) and (e).
90.31 	(h) An individual's offense in any other state or country, where the elements of the 
90.32 	offense are substantially similar to any of the offenses listed in paragraphs (a) and (b), 
90.33 	permanently disqualifies the individual under section 245C.14. An individual is disqualified 
91.1 	under section 245C.14 if fewer than five years have passed since an offense in any other 
91.2 	state or country, the elements of which are substantially similar to the elements of any 
91.3 	offense listed in paragraphs (d) and (e).

91.4 	Sec. 18. Minnesota Statutes 2025 Supplement, section 245C.22, subdivision 5, is amended 
91.5 	to read:
91.6 		Subd. 5.Scope of set-aside. (a) If the commissioner sets aside a disqualification under 
91.7 	this section, the disqualified individual remains disqualified, but may hold a license and 
91.8 	have direct contact with or access to persons receiving services. Except as provided in 
91.9 	paragraph (b), the commissioner's set-aside of a disqualification is limited solely to the 
91.10 	licensed program, applicant, or agency specified in the set aside notice under section 245C.23. 
91.11 	For personal care provider organizations, financial management services organizations, 
91.12 	community first services and supports organizations, unlicensed home and community-based 
91.13 	organizations, and consumer-directed community supports organizations, the commissioner's 
91.14 	set-aside may further be limited to a specific individual who is receiving services. For new 
91.15 	background studies required under section 245C.04, subdivision 1, paragraph (h) (g), if an 
91.16 	individual's disqualification was previously set aside for the license holder's program and 
91.17 	the new background study results in no new information that indicates the individual may 
91.18 	pose a risk of harm to persons receiving services from the license holder, the previous 
91.19 	set-aside shall remain in effect.
91.20 	(b) If the commissioner has previously set aside an individual's disqualification for one 
91.21 	or more programs or agencies, and the individual is the subject of a subsequent background 
91.22 	study for a different program or agency, the commissioner shall determine whether the 
91.23 	disqualification is set aside for the program or agency that initiated the subsequent 
91.24 	background study. A notice of a set-aside under paragraph (c) shall be issued within 15 
91.25 	working days if all of the following criteria are met:
91.26 	(1) the subsequent background study was initiated in connection with a program licensed 
91.27 	or regulated under the same provisions of law and rule for at least one program for which 
91.28 	the individual's disqualification was previously set aside by the commissioner;
91.29 	(2) the individual is not disqualified for an offense specified in section 245C.15, 
91.30 	subdivision 1 or 2;
91.31 	(3) the commissioner has received no new information to indicate that the individual 
91.32 	may pose a risk of harm to any person served by the program; and
91.33 	(4) the previous set-aside was not limited to a specific person receiving services.
92.1 	(c) Notwithstanding paragraph (b), clause (2), for an individual who is employed in the 
92.2 	substance use disorder field, if the commissioner has previously set aside an individual's 
92.3 	disqualification for one or more programs or agencies in the substance use disorder treatment 
92.4 	field, and the individual is the subject of a subsequent background study for a different 
92.5 	program or agency in the substance use disorder treatment field, the commissioner shall set 
92.6 	aside the disqualification for the program or agency in the substance use disorder treatment 
92.7 	field that initiated the subsequent background study when the criteria under paragraph (b), 
92.8 	clauses (1), (3), and (4), are met and the individual is not disqualified for an offense specified 
92.9 	in section 245C.15, subdivision 1. A notice of a set-aside under paragraph (d) shall be issued 
92.10 	within 15 working days.
92.11 	(d) When a disqualification is set aside under paragraph (b), the notice of background 
92.12 	study results issued under section 245C.17, in addition to the requirements under section 
92.13 	245C.17, shall state that the disqualification is set aside for the program or agency that 
92.14 	initiated the subsequent background study. The notice must inform the individual that the 
92.15 	individual may request reconsideration of the disqualification under section 245C.21 on the 
92.16 	basis that the information used to disqualify the individual is incorrect.

92.17 	Sec. 19. Minnesota Statutes 2024, section 245C.24, subdivision 2, is amended to read:
92.18 		Subd. 2.Permanent bar to set aside a disqualification. (a) Except as provided in 
92.19 	paragraphs (b) to (g) (f), the commissioner may not set aside the disqualification of any 
92.20 	individual disqualified pursuant to this chapter, regardless of how much time has passed, 
92.21 	if the individual was disqualified for a crime or conduct listed in section 245C.15, subdivision 
92.22 	1.
92.23 	(b) For an individual in the substance use disorder or corrections field who was 
92.24 	disqualified for a crime or conduct listed under section 245C.15, subdivision 1, and whose 
92.25 	disqualification was set aside prior to July 1, 2005, the commissioner must consider granting 
92.26 	a variance pursuant to section 245C.30 for the license holder for a program dealing primarily 
92.27 	with adults. A request for reconsideration evaluated under this paragraph must include a 
92.28 	letter of recommendation from the license holder that was subject to the prior set-aside 
92.29 	decision addressing the individual's quality of care to children or vulnerable adults and the 
92.30 	circumstances of the individual's departure from that service.
92.31 	(c) If an individual who requires a background study for nonemergency medical 
92.32 	transportation services under section 245C.03, subdivision 12, was disqualified for a crime 
92.33 	or conduct listed under section 245C.15, subdivision 1, and if more than 40 years have 
92.34 	passed since the discharge of the sentence imposed, the commissioner may consider granting 
93.1 	a set-aside pursuant to section 245C.22. A request for reconsideration evaluated under this 
93.2 	paragraph must include a letter of recommendation from the employer. This paragraph does 
93.3 	not apply to a person disqualified based on a violation of sections 243.166; 609.185 to 
93.4 	609.205; 609.25; 609.342 to 609.3453; 609.352; 617.23, subdivision 2, clause (1), or 3, 
93.5 	clause (1); 617.246; or 617.247.
93.6 	(d) When a licensed foster care provider adopts an individual who had received foster 
93.7 	care services from the provider for over six months, and the adopted individual is required 
93.8 	to receive a background study under section 245C.03, subdivision 1, paragraph (a), clause 
93.9 	(2) or (6), the commissioner may grant a variance to the license holder under section 245C.30 
93.10 	to permit the adopted individual with a permanent disqualification to remain affiliated with 
93.11 	the license holder under the conditions of the variance when the variance is recommended 
93.12 	by the county of responsibility for each of the remaining individuals in placement in the 
93.13 	home and the licensing agency for the home.
93.14 	(e) For an individual 18 years of age or older affiliated with a licensed family foster 
93.15 	setting, the commissioner must not set aside or grant a variance for the disqualification of 
93.16 	any individual disqualified pursuant to this chapter, regardless of how much time has passed, 
93.17 	if the individual was disqualified for a crime or conduct listed in section 245C.15, subdivision 
93.18 	4a, paragraphs (a) and (b).
93.19 	(f) In connection with a family foster setting license, the commissioner may grant a 
93.20 	variance to the disqualification for an individual who is under 18 years of age at the time 
93.21 	the background study is submitted.
93.22 	(g) In connection with foster residence settings and children's residential facilities, the 
93.23 	commissioner must not set aside or grant a variance for the disqualification of any individual 
93.24 	disqualified pursuant to this chapter, regardless of how much time has passed, if the individual 
93.25 	was disqualified for a crime or conduct listed in section 245C.15, subdivision 4a, paragraph 
93.26 	(a) or (b).

93.27 	Sec. 20. Minnesota Statutes 2024, section 245D.04, subdivision 3, is amended to read:
93.28 		Subd. 3.Protection-related rights. (a) A person's protection-related rights include the 
93.29 	right to:
93.30 	(1) have personal, financial, service, health, and medical information kept private, and 
93.31 	be advised of disclosure of this information by the license holder;
93.32 	(2) access records and recorded information about the person in accordance with 
93.33 	applicable state and federal law, regulation, or rule;
94.1 	(3) be free from maltreatment;
94.2 	(4) be free from restraint, time out, seclusion, restrictive intervention, or other prohibited 
94.3 	procedure identified in section 245D.06, subdivision 5, or successor provisions, except for: 
94.4 	(i) emergency use of manual restraint to protect the person from imminent danger to self 
94.5 	or others according to the requirements in section 245D.061 or successor provisions; or (ii) 
94.6 	the use of safety interventions as part of a positive support transition plan under section 
94.7 	245D.06, subdivision 8, or successor provisions;
94.8 	(5) receive services in a clean and safe environment when the license holder is the owner, 
94.9 	lessor, or tenant of the service site;
94.10 	(6) be treated with courtesy and respect and receive respectful treatment of the person's 
94.11 	property;
94.12 	(7) reasonable observance of cultural and ethnic practice and religion;
94.13 	(8) be free from bias and harassment regarding race, gender, age, disability, spirituality, 
94.14 	and sexual orientation;
94.15 	(9) be informed of and use the license holder's grievance policy and procedures, including 
94.16 	knowing how to contact persons responsible for addressing problems and to appeal under 
94.17 	section 256.045;
94.18 	(10) know the name, telephone number, and the website, email, and street addresses of 
94.19 	protection and advocacy services, including the appropriate state-appointed ombudsman, 
94.20 	and a brief description of how to file a complaint with these offices;
94.21 	(11) assert these rights personally, or have them asserted by the person's family, 
94.22 	authorized representative, or legal representative, without retaliation;
94.23 	(12) give or withhold written informed consent to participate in any research or 
94.24 	experimental treatment;
94.25 	(13) associate with other persons of the person's choice in the community;
94.26 	(14) personal privacy, including the right to use the lock on the person's bedroom or unit 
94.27 	door;
94.28 	(15) engage in chosen activities; and
94.29 	(16) access to the person's personal possessions at any time, including financial resources.
95.1 	(b) For a person residing in a residential site licensed according to chapter 245A, or 
95.2 	where the license holder is the owner, lessor, or tenant of the residential service site, 
95.3 	protection-related rights also include the right to:
95.4 	(1) have daily, private access to and use of a non-coin-operated telephone for local calls 
95.5 	and long-distance calls made collect or paid for by the person;
95.6 	(2) receive and send, without interference, uncensored, unopened mail or electronic 
95.7 	correspondence or communication;
95.8 	(3) have use of and free access to common areas in the residence and the freedom to 
95.9 	come and go from the residence at will;
95.10 	(4) choose the person's visitors and time of visits and have privacy for visits with the 
95.11 	person's spouse, next of kin, legal counsel, religious adviser, or others, in accordance with 
95.12 	section 363A.09 of the Human Rights Act, including privacy in the person's bedroom;
95.13 	(5) have access to three nutritionally balanced meals and nutritious snacks between 
95.14 	meals each day;
95.15 	(6) have freedom and support to access food and potable water at any time;
95.16 	(7) have the freedom to furnish and decorate the person's bedroom or living unit;
95.17 	(8) a setting that is clean and free from accumulation of dirt, grease, garbage, peeling 
95.18 	paint, mold, vermin, and insects;
95.19 	(9) a setting that is free from hazards that threaten the person's health or safety; and
95.20 	(10) a setting that meets the definition of a dwelling unit within a residential occupancy 
95.21 	as defined in the State Fire Code.
95.22 	(c) Restriction of a person's rights under paragraph (a), clauses (13) to (16), or paragraph 
95.23 	(b), clauses (1) to (7), is allowed only if determined necessary to ensure the health, safety, 
95.24 	and well-being of the person. Any restriction of those rights must be documented in the 
95.25 	person's support plan or support plan addendum. The restriction must be implemented in 
95.26 	the least restrictive alternative manner necessary to protect the person and provide support 
95.27 	to reduce or eliminate the need for the restriction in the most integrated setting and inclusive 
95.28 	manner. The documentation must include the following information:
95.29 	(1) the justification for the restriction based on an assessment of the person's vulnerability 
95.30 	related to exercising the right without restriction;
95.31 	(2) the objective measures set as conditions for ending the restriction;
96.1 	(3) a schedule for reviewing the need for the restriction based on the conditions for 
96.2 	ending the restriction to occur semiannually from the date of initial approval, at a minimum, 
96.3 	or more frequently if requested by the person, the person's legal representative, if any, and 
96.4 	case manager; and
96.5 	(4) signed and dated approval for the restriction from the person, or the person's legal 
96.6 	representative, if any. A restriction may be implemented only when the required approval 
96.7 	has been obtained. Approval may be withdrawn at any time. If approval is withdrawn, the 
96.8 	right must be immediately and fully restored.

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

96.10 	Sec. 21. Minnesota Statutes 2024, section 245D.10, subdivision 4, is amended to read:
96.11 		Subd. 4.Availability of current written policies and procedures. (a) The license 
96.12 	holder must review and update, as needed, the written policies and procedures required 
96.13 	under this chapter.
96.14 	(b)(1) The license holder must inform the person or the person's legal representative and 
96.15 	case manager of the policies and procedures affecting a person's rights under section 245D.04, 
96.16 	and provide copies of those policies and procedures, within five working days of service 
96.17 	initiation.
96.18 	(2) If a license holder only provides basic services and supports, this includes the:
96.19 	(i) grievance policy and procedure required under subdivision 2; and
96.20 	(ii) service suspension and termination policy and procedure required under subdivision 
96.21 	3.; and
96.22 	(iii) emergency use of manual restraints policy and procedure required under section 
96.23 	245D.061, subdivision 9, or successor provisions.
96.24 	(3) For all other license holders this includes the:
96.25 	(i) policies and procedures in clause (2); and
96.26 	(ii) emergency use of manual restraints policy and procedure required under section 
96.27 	245D.061, subdivision 9, or successor provisions; and
96.28 	(iii) (ii) data privacy requirements under section 245D.11, subdivision 3.
96.29 	(c) The license holder must provide a written notice to all persons or their legal 
96.30 	representatives and case managers at least 30 days before implementing any procedural 
96.31 	revisions to policies affecting a person's service-related or protection-related rights under 
97.1 	section 245D.04 and maltreatment reporting policies and procedures. The notice must 
97.2 	explain the revision that was made and include a copy of the revised policy and procedure. 
97.3 	The license holder must document the reasonable cause for not providing the notice at least 
97.4 	30 days before implementing the revisions.
97.5 	(d) Before implementing revisions to required policies and procedures, the license holder 
97.6 	must inform all employees of the revisions and provide training on implementation of the 
97.7 	revised policies and procedures.
97.8 	(e) The license holder must annually notify all persons, or their legal representatives, 
97.9 	and case managers of any procedural revisions to policies required under this chapter, other 
97.10 	than those in paragraph (c). Upon request, the license holder must provide the person, or 
97.11 	the person's legal representative, and case manager with copies of the revised policies and 
97.12 	procedures.

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

97.14 	Sec. 22. Minnesota Statutes 2024, section 256B.02, is amended by adding a subdivision 
97.15 	to read:
97.16 		Subd. 20.Fraud. "Fraud" means an intentional deception or misrepresentation made by 
97.17 	a person with the knowledge that the deception could result in an unauthorized benefit to 
97.18 	the person or another person or an act, promise to act, or omission made with the intent to 
97.19 	obtain a benefit in a manner that is prohibited. Fraud includes:
97.20 	(1) submitting an application for provider status knowing that the application 
97.21 	misrepresents, conceals, or fails to disclose any material information;
97.22 	(2) intentionally submitting a claim for reimbursement under this chapter, knowing or 
97.23 	having reason to know the claim is ineligible for reimbursement in whole or in part;
97.24 	(3) providing documentation or other information requested by the commissioner having 
97.25 	knowledge that it is false in any material respect; and
97.26 	(4) any act that constitutes the commission, or attempt or conspiracy to commit, a 
97.27 	violation of any of the following:
97.28 	(i) section 256.98 (wrongfully obtaining assistance);
97.29 	(ii) section 609.466 (medical assistance fraud);
97.30 	(iii) section 609.48 (perjury), involving making a false statement related to medical 
97.31 	assistance or the receipt of public money;
98.1 	(iv) section 609.496 (concealing criminal proceeds) or 609.497 (engaging in business 
98.2 	of concealing criminal proceeds), involving proceeds consisting of public money;
98.3 	(v) section 609.52 (theft), involving theft of property consisting of public money;
98.4 	(vi) section 609.542 (illegal remuneration);
98.5 	(vii) section 609.625 (aggravated forgery) or 609.63 (forgery), involving falsely filing 
98.6 	any record, account, or other document with any state agency or department or falsely 
98.7 	making or altering any record, account, or other document filed with any state agency or 
98.8 	department;
98.9 	(viii) section 609.821 (financial transaction card fraud), involving a public assistance 
98.10 	benefit;
98.11 	(ix) a felony listed in United States Code, title 42, section 1320a-7b(b)(1) or (2), subject 
98.12 	to any safe harbors established in Code of Federal Regulations, title 42, section 1001.952; 
98.13 	and
98.14 	(x) any other act that constitutes fraud under applicable federal law.

98.15 	Sec. 23. Minnesota Statutes 2024, section 256B.04, subdivision 10, is amended to read:
98.16 		Subd. 10.Investigation of certain claims. The commissioner must establish by rule 
98.17 	general criteria and procedures for the identification and prompt investigation of suspected 
98.18 	medical assistance fraud, theft, abuse, presentment of false or duplicate claims, presentment 
98.19 	of claims for services not reasonable or medically necessary, or false statement or 
98.20 	representation of material facts by a vendor of medical care, and for the imposition of 
98.21 	sanctions against a vendor of medical care. The commissioner may use both prepayment 
98.22 	and postpayment review systems to review claims submitted by vendors. Payment of claims, 
98.23 	including payments made after a prepayment review, does not prohibit the commissioner 
98.24 	from completing a postpayment claims review and taking additional administrative actions 
98.25 	or monetary recovery against a vendor. If it appears to the state agency that a vendor of 
98.26 	medical care may have acted in a manner warranting civil or criminal proceedings, it shall 
98.27 	so inform the attorney general in writing.

98.28 	Sec. 24. Minnesota Statutes 2025 Supplement, section 256B.051, subdivision 6, is amended 
98.29 	to read:
98.30 		Subd. 6.Agency qualifications and duties. An agency is eligible for reimbursement 
98.31 	under this section only if the agency:
99.1 	(1) is confirmed by the commissioner as an eligible provider after a pre-enrollment risk 
99.2 	assessment under subdivision 6a;
99.3 	(2) is enrolled as a medical assistance Minnesota health care program provider and meets 
99.4 	all applicable provider standards and requirements;
99.5 	(3) demonstrates compliance with federal and state laws and policies for housing 
99.6 	stabilization services as determined by the commissioner;
99.7 	(4) complies with background study requirements under chapter 245C and maintains 
99.8 	documentation of background study requests and results;
99.9 	(5) provides at the time of enrollment, reenrollment, and revalidation in a format 
99.10 	determined by the commissioner, proof of surety bond coverage for each business location 
99.11 	providing services. Upon new enrollment, or if the provider's medical assistance revenue 
99.12 	in the previous calendar year is $300,000 or less, the provider agency must purchase a surety 
99.13 	bond of $50,000. If the provider's medical assistance revenue in the previous year is over 
99.14 	$300,000, the provider agency must purchase a surety bond of $100,000. The surety bond 
99.15 	must be in a form approved by the commissioner, must be renewed purchased new annually, 
99.16 	and must allow for recovery of costs and fees in pursuing a claim on the bond. Any action 
99.17 	to obtain monetary recovery or sanctions from a surety bond must occur within six years 
99.18 	from the date the debt is affirmed by a final agency decision. An agency decision is final 
99.19 	when the right to appeal the debt has been exhausted or the time to appeal has expired under 
99.20 	section 256B.064;
99.21 	(6) directly provides housing stabilization services using employees of the agency and 
99.22 	not by using a subcontractor or reporting agent;
99.23 	(7) ensures all controlling individuals and employees of the agency complete annual 
99.24 	vulnerable adult training; and
99.25 	(8) completes compliance training as required under subdivision 6b.

99.26 	Sec. 25. Minnesota Statutes 2024, section 256B.064, subdivision 2, is amended to read:
99.27 		Subd. 2.Imposition of monetary recovery and sanctions. (a) The commissioner shall 
99.28 	determine any monetary amounts to be recovered and sanctions to be imposed upon an 
99.29 	individual or entity under this section. Except as provided in paragraphs (b) and (d), neither 
99.30 	a monetary recovery nor a sanction will be imposed by the commissioner without prior 
99.31 	notice and an opportunity for a hearing, according to chapter 14, on the commissioner's 
99.32 	proposed action, provided that the commissioner may suspend or reduce payment to an 
99.33 	individual or entity, except a nursing home or convalescent care facility, after notice and 
100.1 	prior to the hearing if in the commissioner's opinion that action is necessary to protect the 
100.2 	public welfare and the interests of the program.
100.3 	(b) Except when the commissioner finds good cause not to suspend payments under 
100.4 	Code of Federal Regulations, title 42, section 455.23(e) or (f), the commissioner shall 
100.5 	withhold or reduce payments to an individual or entity without providing advance notice 
100.6 	of such withholding or reduction if either of the following occurs:
100.7 	(1) the individual or entity is convicted of a crime involving the conduct described in 
100.8 	subdivision 1a; or
100.9 	(2) the commissioner determines there is a credible allegation of fraud for which an 
100.10 	investigation is pending under the program. Allegations are considered credible when they 
100.11 	have an indicium of reliability and the state agency has reviewed all allegations, facts, and 
100.12 	evidence carefully and acts judiciously on a case-by-case basis. A credible allegation of 
100.13 	fraud is an allegation which has been verified by the state, from any source, including but 
100.14 	not limited to:
100.15 	(i) fraud hotline complaints;
100.16 	(ii) claims data mining; and
100.17 	(iii) patterns identified through provider audits, civil false claims cases, and law 
100.18 	enforcement investigations; and
100.19 	(iv) court filings and other legal documents, including but not limited to police reports, 
100.20 	complaints, indictments, informations, affidavits, declarations, and search warrants.
100.21 	(c) The commissioner must send notice of the withholding or reduction of payments 
100.22 	under paragraph (b) within five days of taking such action unless requested in writing by a 
100.23 	law enforcement agency to temporarily withhold the notice. The notice must:
100.24 	(1) state that payments are being withheld according to paragraph (b);
100.25 	(2) set forth the general allegations as to the nature of the withholding action, but need 
100.26 	not disclose any specific information concerning an ongoing investigation;
100.27 	(3) except in the case of a conviction for conduct described in subdivision 1a, state that 
100.28 	the withholding is for a temporary period and cite the circumstances under which withholding 
100.29 	will be terminated;
100.30 	(4) identify the types of claims to which the withholding applies; and
100.31 	(5) inform the individual or entity of the right to submit written evidence for consideration 
100.32 	by the commissioner.
101.1 	(d) The withholding or reduction of payments will not continue after the commissioner 
101.2 	determines there is insufficient evidence of fraud by the individual or entity, or after legal 
101.3 	proceedings relating to the alleged fraud are completed, unless the commissioner has sent 
101.4 	notice of intention to impose monetary recovery or sanctions under paragraph (a). Upon 
101.5 	conviction for a crime related to the provision, management, or administration of a health 
101.6 	service under medical assistance, a payment held pursuant to this section by the commissioner 
101.7 	or a managed care organization that contracts with the commissioner under section 256B.035 
101.8 	is forfeited to the commissioner or managed care organization, regardless of the amount 
101.9 	charged in the criminal complaint or the amount of criminal restitution ordered.
101.10 	(e) The commissioner shall suspend or terminate an individual's or entity's participation 
101.11 	in the program without providing advance notice and an opportunity for a hearing when the 
101.12 	suspension or termination is required because of the individual's or entity's exclusion from 
101.13 	participation in Medicare. Within five days of taking such action, the commissioner must 
101.14 	send notice of the suspension or termination. The notice must:
101.15 	(1) state that suspension or termination is the result of the individual's or entity's exclusion 
101.16 	from Medicare;
101.17 	(2) identify the effective date of the suspension or termination; and
101.18 	(3) inform the individual or entity of the need to be reinstated to Medicare before 
101.19 	reapplying for participation in the program.
101.20 	(f) Upon receipt of a notice under paragraph (a) that a monetary recovery or sanction is 
101.21 	to be imposed, an individual or entity may request a contested case, as defined in section 
101.22 	14.02, subdivision 3, by filing with the commissioner a written request of appeal. The appeal 
101.23 	request must be received by the commissioner no later than 30 days after the date the 
101.24 	notification of monetary recovery or sanction was mailed to the individual or entity. The 
101.25 	appeal request must specify:
101.26 	(1) each disputed item, the reason for the dispute, and an estimate of the dollar amount 
101.27 	involved for each disputed item;
101.28 	(2) the computation that the individual or entity believes is correct;
101.29 	(3) the authority in statute or rule upon which the individual or entity relies for each 
101.30 	disputed item;
101.31 	(4) the name and address of the person or entity with whom contacts may be made 
101.32 	regarding the appeal; and
101.33 	(5) other information required by the commissioner.
102.1 	(g) The commissioner may order an individual or entity to forfeit a fine for failure to 
102.2 	fully document services according to standards in this chapter and Minnesota Rules, chapter 
102.3 	9505. The commissioner may assess fines if specific required components of documentation 
102.4 	are missing. The fine for incomplete documentation shall equal 20 percent of the amount 
102.5 	paid on the claims for reimbursement submitted by the individual or entity, or up to $5,000, 
102.6 	whichever is less. If the commissioner determines that an individual or entity repeatedly 
102.7 	violated this chapter, chapter 254B or 245G, or Minnesota Rules, chapter 9505, related to 
102.8 	the provision of services to program recipients and the submission of claims for payment, 
102.9 	the commissioner may order an individual or entity to forfeit a fine based on the nature, 
102.10 	severity, and chronicity of the violations, in an amount of up to $5,000 or 20 percent of the 
102.11 	value of the claims, whichever is greater.
102.12 	(h) The individual or entity shall pay the fine assessed on or before the payment date 
102.13 	specified. If the individual or entity fails to pay the fine, the commissioner may withhold 
102.14 	or reduce payments and recover the amount of the fine. A timely appeal shall stay payment 
102.15 	of the fine until the commissioner issues a final order.

102.16 	Sec. 26. Minnesota Statutes 2025 Supplement, section 256B.0659, subdivision 21, is 
102.17 	amended to read:
102.18 		Subd. 21.Requirements for provider enrollment of personal care assistance provider 
102.19 	agencies. (a) All personal care assistance provider agencies must provide, at the time of 
102.20 	enrollment, reenrollment, and revalidation as a personal care assistance provider agency in 
102.21 	a format determined by the commissioner, information and documentation that includes, 
102.22 	but is not limited to, the following:
102.23 	(1) the personal care assistance provider agency's current contact information including 
102.24 	address, telephone number, and email address;
102.25 	(2) proof of surety bond coverage for each business location providing services. Upon 
102.26 	new enrollment, or if the provider's Medicaid revenue in the previous calendar year is up 
102.27 	to and including $300,000, the provider agency must purchase a surety bond of $50,000. If 
102.28 	the Medicaid revenue in the previous year is over $300,000, the provider agency must 
102.29 	purchase a surety bond of $100,000. The surety bond must be in a form approved by the 
102.30 	commissioner, must be renewed purchased new annually, and must allow for recovery of 
102.31 	costs and fees in pursuing a claim on the bond. Any action to obtain monetary recovery or 
102.32 	sanctions from a surety bond must occur within six years from the date the debt is affirmed 
102.33 	by a final agency decision. An agency decision is final when the right to appeal the debt 
102.34 	has been exhausted or the time to appeal has expired under section 256B.064;
103.1 	(3) proof of fidelity bond coverage in the amount of $20,000 for each business location 
103.2 	providing service;
103.3 	(4) proof of workers' compensation insurance coverage identifying the business location 
103.4 	where personal care assistance services are provided;
103.5 	(5) proof of liability insurance coverage identifying the business location where personal 
103.6 	care assistance services are provided and naming the department as a certificate holder;
103.7 	(6) a copy of the personal care assistance provider agency's written policies and 
103.8 	procedures including: hiring of employees; training requirements; service delivery; and 
103.9 	employee and consumer safety including process for notification and resolution of consumer 
103.10 	grievances, identification and prevention of communicable diseases, and employee 
103.11 	misconduct;
103.12 	(7) copies of all other forms the personal care assistance provider agency uses in the 
103.13 	course of daily business including, but not limited to:
103.14 	(i) a copy of the personal care assistance provider agency's time sheet if the time sheet 
103.15 	varies from the standard time sheet for personal care assistance services approved by the 
103.16 	commissioner, and a letter requesting approval of the personal care assistance provider 
103.17 	agency's nonstandard time sheet;
103.18 	(ii) the personal care assistance provider agency's template for the personal care assistance 
103.19 	care plan; and
103.20 	(iii) the personal care assistance provider agency's template for the written agreement 
103.21 	in subdivision 20 for recipients using the personal care assistance choice option, if applicable;
103.22 	(8) a list of all training and classes that the personal care assistance provider agency 
103.23 	requires of its staff providing personal care assistance services;
103.24 	(9) documentation that the personal care assistance provider agency and staff have 
103.25 	successfully completed all the training required by this section, including the requirements 
103.26 	under subdivision 11, paragraph (d), if enhanced personal care assistance services are 
103.27 	provided and submitted for an enhanced rate under subdivision 17a;
103.28 	(10) documentation of the agency's marketing practices;
103.29 	(11) disclosure of ownership, leasing, or management of all residential properties that 
103.30 	is used or could be used for providing home care services;
103.31 	(12) documentation that the agency will use the following percentages of revenue 
103.32 	generated from the medical assistance rate paid for personal care assistance services for 
104.1 	employee personal care assistant wages and benefits: 72.5 percent of revenue in the personal 
104.2 	care assistance choice option and 72.5 percent of revenue from other personal care assistance 
104.3 	providers. The revenue generated by the qualified professional and the reasonable costs 
104.4 	associated with the qualified professional shall not be used in making this calculation; and
104.5 	(13) effective May 15, 2010, documentation that the agency does not burden recipients' 
104.6 	free exercise of their right to choose service providers by requiring personal care assistants 
104.7 	to sign an agreement not to work with any particular personal care assistance recipient or 
104.8 	for another personal care assistance provider agency after leaving the agency and that the 
104.9 	agency is not taking action on any such agreements or requirements regardless of the date 
104.10 	signed.
104.11 	(b) Personal care assistance provider agencies shall provide the information specified 
104.12 	in paragraph (a) to the commissioner at the time the personal care assistance provider agency 
104.13 	enrolls as a vendor or upon request from the commissioner. The commissioner shall collect 
104.14 	the information specified in paragraph (a) from all personal care assistance providers 
104.15 	beginning July 1, 2009.
104.16 	(c) All personal care assistance provider agencies shall require all employees in 
104.17 	management and supervisory positions and owners of the agency who are active in the 
104.18 	day-to-day management and operations of the agency to complete mandatory training as 
104.19 	determined by the commissioner before submitting an application for enrollment of the 
104.20 	agency as a provider. All personal care assistance provider agencies shall also require 
104.21 	qualified professionals to complete the training required by subdivision 13 before submitting 
104.22 	an application for enrollment of the agency as a provider. Employees in management and 
104.23 	supervisory positions and owners who are active in the day-to-day operations of an agency 
104.24 	who have completed the required training as an employee with a personal care assistance 
104.25 	provider agency do not need to repeat the required training if they are hired by another 
104.26 	agency, if they have completed the training within the past three years. By September 1, 
104.27 	2010, the required training must be available with meaningful access according to title VI 
104.28 	of the Civil Rights Act and federal regulations adopted under that law or any guidance from 
104.29 	the United States Health and Human Services Department. The required training must be 
104.30 	available online or by electronic remote connection. The required training must provide for 
104.31 	competency testing. Personal care assistance provider agency billing staff shall complete 
104.32 	training about personal care assistance program financial management. This training is 
104.33 	effective July 1, 2009. Any personal care assistance provider agency enrolled before that 
104.34 	date shall, if it has not already, complete the provider training within 18 months of July 1, 
104.35 	2009. Any new owners or employees in management and supervisory positions involved 
105.1 	in the day-to-day operations are required to complete mandatory training as a requisite of 
105.2 	working for the agency. Personal care assistance provider agencies certified for participation 
105.3 	in Medicare as home health agencies are exempt from the training required in this 
105.4 	subdivision. When available, Medicare-certified home health agency owners, supervisors, 
105.5 	or managers must successfully complete the competency test.
105.6 	(d) All surety bonds, fidelity bonds, workers' compensation insurance, and liability 
105.7 	insurance required by this subdivision must be maintained continuously and purchased new 
105.8 	annually. After initial enrollment, a provider must submit proof of bonds and required 
105.9 	coverages at any time at the request of the commissioner. Services provided while there are 
105.10 	lapses in coverage are not eligible for payment. Lapses in coverage may result in sanctions, 
105.11 	including termination. The commissioner shall send instructions and a due date to submit 
105.12 	the requested information to the personal care assistance provider agency.

105.13 	Sec. 27. Minnesota Statutes 2025 Supplement, section 256B.0701, subdivision 9, is 
105.14 	amended to read:
105.15 		Subd. 9.Provider qualifications and duties. A provider is eligible for reimbursement 
105.16 	under this section only if the provider:
105.17 	(1) is confirmed by the commissioner as an eligible provider after a pre-enrollment risk 
105.18 	assessment under subdivision 10;
105.19 	(2) is enrolled as a medical assistance Minnesota health care program provider and meets 
105.20 	all applicable provider standards and requirements;
105.21 	(3) demonstrates compliance with federal and state laws and policies for housing 
105.22 	stabilization services as determined by the commissioner;
105.23 	(4) complies with background study requirements under chapter 245C and maintains 
105.24 	documentation of background study requests and results;
105.25 	(5) provides at the time of enrollment, reenrollment, and revalidation in a format 
105.26 	determined by the commissioner, proof of surety bond coverage for each business location 
105.27 	providing services. Upon new enrollment, or if the provider's medical assistance revenue 
105.28 	in the previous calendar year is $300,000 or less, the provider agency must purchase a surety 
105.29 	bond of $50,000. If the provider's medical assistance revenue in the previous year is over 
105.30 	$300,000, the provider agency must purchase a surety bond of $100,000. The surety bond 
105.31 	must be in a form approved by the commissioner, must be renewed purchased new annually, 
105.32 	and must allow for recovery of costs and fees in pursuing a claim on the bond. Any action 
105.33 	to obtain monetary recovery or sanctions from a surety bond must occur within six years 
106.1 	from the date the debt is affirmed by a final agency decision. An agency decision is final 
106.2 	when the right to appeal the debt has been exhausted or the time to appeal has expired under 
106.3 	section 256B.064;
106.4 	(6) ensures all controlling individuals and employees of the agency complete annual 
106.5 	vulnerable adult training;
106.6 	(7) completes compliance training as required under subdivision 11; and
106.7 	(8) complies with the habitability inspection requirements in subdivision 13.

106.8 	Sec. 28. Minnesota Statutes 2024, section 256B.27, subdivision 3, is amended to read:
106.9 		Subd. 3.Access to medical records. The commissioner of human services, with the 
106.10 	written consent of the recipient, on file with the local welfare agency, shall be allowed 
106.11 	access in the manner and within the time prescribed by the commissioner to all personal 
106.12 	medical records of medical assistance recipients solely for the purposes of investigating 
106.13 	whether or not: (a) a vendor of medical care has submitted a claim for reimbursement, a 
106.14 	cost report or a rate application which is duplicative, erroneous, or false in whole or in part, 
106.15 	or which results in the vendor obtaining greater compensation than the vendor is legally 
106.16 	entitled to; or (b) the medical care was medically necessary. When the commissioner is 
106.17 	investigating a possible overpayment of Medicaid funds, The commissioner may conduct 
106.18 	on-site inspections of any and all vendors and service locations or may request records from 
106.19 	a vendor to verify that information submitted to the commissioner is accurate, determine 
106.20 	compliance with service delivery and billing requirements, and determine compliance with 
106.21 	any other applicable laws or rules. The commissioner must be given immediate access 
106.22 	without prior notice to the vendor's office during regular business hours and to documentation 
106.23 	and records related to services provided and submission of claims for services provided. 
106.24 	The department shall document in writing the need for immediate access to records related 
106.25 	to a specific investigation. Denying the commissioner access to records is cause for the 
106.26 	vendor's immediate suspension of payment or termination according to section 256B.064. 
106.27 	The determination of provision of services not medically necessary shall be made by the 
106.28 	commissioner. Notwithstanding any other law to the contrary, a vendor of medical care 
106.29 	shall not be subject to any civil or criminal liability for providing access to medical records 
106.30 	to the commissioner of human services pursuant to this section.

107.1 	Sec. 29. Minnesota Statutes 2025 Supplement, section 256B.85, subdivision 12, is amended 
107.2 	to read:
107.3 		Subd. 12.Requirements for enrollment of CFSS agency-providers. (a) All CFSS 
107.4 	agency-providers must provide, at the time of enrollment, reenrollment, and revalidation 
107.5 	as a CFSS agency-provider in a format determined by the commissioner, information and 
107.6 	documentation that includes but is not limited to the following:
107.7 	(1) the CFSS agency-provider's current contact information including address, telephone 
107.8 	number, and email address;
107.9 	(2) proof of surety bond coverage. Upon new enrollment, or if the agency-provider's 
107.10 	Medicaid revenue in the previous calendar year is less than or equal to $300,000, the 
107.11 	agency-provider must purchase a surety bond of $50,000. If the agency-provider's Medicaid 
107.12 	revenue in the previous calendar year is greater than $300,000, the agency-provider must 
107.13 	purchase a surety bond of $100,000. The surety bond must be in a form approved by the 
107.14 	commissioner, must be renewed purchased new annually, and must allow for recovery of 
107.15 	costs and fees in pursuing a claim on the bond. Any action to obtain monetary recovery or 
107.16 	sanctions from a surety bond must occur within six years from the date the debt is affirmed 
107.17 	by a final agency decision. An agency decision is final when the right to appeal the debt 
107.18 	has been exhausted or the time to appeal has expired under section 256B.064;
107.19 	(3) proof of fidelity bond coverage in the amount of $20,000 per provider location;
107.20 	(4) proof of workers' compensation insurance coverage;
107.21 	(5) proof of liability insurance;
107.22 	(6) a copy of the CFSS agency-provider's organizational chart identifying the names 
107.23 	and roles of all owners, managing employees, staff, board of directors, and additional 
107.24 	documentation reporting any affiliations of the directors and owners to other service 
107.25 	providers;
107.26 	(7) proof that the CFSS agency-provider has written policies and procedures including: 
107.27 	hiring of employees; training requirements; service delivery; and employee and consumer 
107.28 	safety, including the process for notification and resolution of participant grievances, incident 
107.29 	response, identification and prevention of communicable diseases, and employee misconduct;
107.30 	(8) proof that the CFSS agency-provider has all of the following forms and documents:
107.31 	(i) a copy of the CFSS agency-provider's time sheet; and
107.32 	(ii) a copy of the participant's individual CFSS service delivery plan;
108.1 	(9) a list of all training and classes that the CFSS agency-provider requires of its staff 
108.2 	providing CFSS services;
108.3 	(10) documentation that the CFSS agency-provider and staff have successfully completed 
108.4 	all the training required by this section;
108.5 	(11) documentation of the agency-provider's marketing practices;
108.6 	(12) disclosure of ownership, leasing, or management of all residential properties that 
108.7 	are used or could be used for providing home care services;
108.8 	(13) documentation that the agency-provider will use at least the following percentages 
108.9 	of revenue generated from the medical assistance rate paid for CFSS services for CFSS 
108.10 	support worker wages and benefits: 72.5 percent of revenue from CFSS providers, except 
108.11 	100 percent of the revenue generated by a medical assistance rate increase due to a collective 
108.12 	bargaining agreement under section 179A.54 must be used for support worker wages and 
108.13 	benefits. The revenue generated by the worker training and development services and the 
108.14 	reasonable costs associated with the worker training and development services shall not be 
108.15 	used in making this calculation; and
108.16 	(14) documentation that the agency-provider does not burden participants' free exercise 
108.17 	of their right to choose service providers by requiring CFSS support workers to sign an 
108.18 	agreement not to work with any particular CFSS participant or for another CFSS 
108.19 	agency-provider after leaving the agency and that the agency is not taking action on any 
108.20 	such agreements or requirements regardless of the date signed.
108.21 	(b) CFSS agency-providers shall provide to the commissioner the information specified 
108.22 	in paragraph (a).
108.23 	(c) All CFSS agency-providers shall require all employees in management and 
108.24 	supervisory positions and owners of the agency who are active in the day-to-day management 
108.25 	and operations of the agency to complete mandatory training as determined by the 
108.26 	commissioner. Employees in management and supervisory positions and owners who are 
108.27 	active in the day-to-day operations of an agency who have completed the required training 
108.28 	as an employee with a CFSS agency-provider do not need to repeat the required training if 
108.29 	they are hired by another agency and they have completed the training within the past three 
108.30 	years. CFSS agency-provider billing staff shall complete training about CFSS program 
108.31 	financial management. Any new owners or employees in management and supervisory 
108.32 	positions involved in the day-to-day operations are required to complete mandatory training 
108.33 	as a requisite of working for the agency.
109.1 	(d) Agency-providers shall submit all required documentation in this section within 30 
109.2 	days of notification from the commissioner. If an agency-provider fails to submit all the 
109.3 	required documentation, the commissioner may take action under subdivision 23a.

109.4 	Sec. 30. Minnesota Statutes 2025 Supplement, section 256B.85, subdivision 17a, is 
109.5 	amended to read:
109.6 		Subd. 17a.Consultation services provider qualifications and 
109.7 	requirements. Consultation services providers must meet the following qualifications and 
109.8 	requirements:
109.9 	(1) meet the requirements under subdivision 10, paragraph (a), excluding clauses (4) 
109.10 	and (5);
109.11 	(2) be under contract with the department and enrolled as a Minnesota health care program 
109.12 	provider;
109.13 	(3) not be the FMS provider, the lead agency, or the CFSS or home and community-based 
109.14 	services waiver vendor or agency-provider to the participant;
109.15 	(4) meet the service standards as established by the commissioner;
109.16 	(5) have proof of surety bond coverage. Upon new enrollment, or if the consultation 
109.17 	service provider's Medicaid revenue in the previous calendar year is less than or equal to 
109.18 	$300,000, the consultation service provider must purchase a surety bond of $50,000. If the 
109.19 	agency-provider's Medicaid revenue in the previous calendar year is greater than $300,000, 
109.20 	the consultation service provider must purchase a surety bond of $100,000. The surety bond 
109.21 	must be in a form approved by the commissioner, must be renewed purchased new annually, 
109.22 	and must allow for recovery of costs and fees in pursuing a claim on the bond. Any action 
109.23 	to obtain monetary recovery or sanctions from a surety bond must occur within six years 
109.24 	from the date the debt is affirmed by a final agency decision. An agency decision is final 
109.25 	when the right to appeal the debt has been exhausted or the time to appeal has expired under 
109.26 	section 256B.064;
109.27 	(6) employ lead professional staff with a minimum of two years of experience in 
109.28 	providing services such as support planning, support broker, case management or care 
109.29 	coordination, or consultation services and consumer education to participants using a 
109.30 	self-directed program using FMS under medical assistance;
109.31 	(7) report maltreatment as required under chapter 260E and section 626.557;
109.32 	(8) comply with medical assistance provider requirements;
110.1 	(9) understand the CFSS program and its policies;
110.2 	(10) be knowledgeable about self-directed principles and the application of the 
110.3 	person-centered planning process;
110.4 	(11) have general knowledge of the FMS provider duties and the vendor fiscal/employer 
110.5 	agent model, including all applicable federal, state, and local laws and regulations regarding 
110.6 	tax, labor, employment, and liability and workers' compensation coverage for household 
110.7 	workers; and
110.8 	(12) have all employees, including lead professional staff, staff in management and 
110.9 	supervisory positions, and owners of the agency who are active in the day-to-day management 
110.10 	and operations of the agency, complete training as specified in the contract with the 
110.11 	department.

110.12 	Sec. 31. Minnesota Statutes 2025 Supplement, section 260E.03, subdivision 6, is amended 
110.13 	to read:
110.14 		Subd. 6.Facility. "Facility" means:
110.15 	(1) a licensed or unlicensed day care facility, certified license-exempt child care center, 
110.16 	residential facility, agency, psychiatric residential treatment facility, hospital, sanitarium, 
110.17 	or other facility or institution required to be licensed under sections 144.50 to 144.58, 
110.18 	241.021, or 245A.01 to 245A.16, or chapter 142B, 142C, 144H, or 245D;
110.19 	(2) a school as defined in section 120A.05, subdivisions 9, 11, and 13; and chapter 124E; 
110.20 	or
110.21 	(3) a nonlicensed personal care provider organization as defined in section 256B.0625, 
110.22 	subdivision 19a.

110.23 	Sec. 32. Minnesota Statutes 2025 Supplement, section 260E.11, subdivision 1, is amended 
110.24 	to read:
110.25 		Subdivision 1.Reports of maltreatment in facility. A person mandated to report child 
110.26 	maltreatment occurring within a licensed facility shall report the information to the agency 
110.27 	responsible for licensing or certifying the facility under sections 144.50 to 144.58, 241.021, 
110.28 	and 245A.01 to 245A.16 or chapter 142B, 142C, 144H, or 245D or to a nonlicensed personal 
110.29 	care provider organization as defined in section 256B.0625, subdivision 19a. A person 
110.30 	mandated to report child maltreatment occurring within a federally certified psychiatric 
110.31 	residential treatment facility must report the information to the Department of Health.

111.1 	Sec. 33. Minnesota Statutes 2025 Supplement, section 260E.14, subdivision 1, is amended 
111.2 	to read:
111.3 		Subdivision 1.Facilities and schools. (a) The local welfare agency is the agency 
111.4 	responsible for investigating allegations of maltreatment in child foster care, family child 
111.5 	care, legally nonlicensed child care, and reports involving children served by an unlicensed 
111.6 	personal care provider organization under section 256B.0659. Copies of findings related to 
111.7 	personal care provider organizations under section 256B.0659 must be forwarded to the 
111.8 	Department of Human Services provider enrollment.
111.9 	(b) The Department of Human Services is the agency responsible for screening and 
111.10 	investigating allegations of maltreatment in juvenile correctional facilities listed under 
111.11 	section 241.021 located in the local welfare agency's county and in facilities licensed or 
111.12 	certified under chapters 245A and 245D, except federally certified psychiatric residential 
111.13 	treatment facilities.
111.14 	(c) The Department of Health is the agency responsible for screening and investigating 
111.15 	allegations of maltreatment in facilities licensed under sections 144.50 to 144.58 and 144A.43 
111.16 	to 144A.482or, chapter 144H, or federally certified as a psychiatric residential treatment 
111.17 	facility.
111.18 	(d) The Department of Education is the agency responsible for screening and investigating 
111.19 	allegations of maltreatment in a school as defined in section 120A.05, subdivisions 9, 11, 
111.20 	and 13, and chapter 124E. The Department of Education's responsibility to screen and 
111.21 	investigate includes allegations of maltreatment involving students 18 through 21 years of 
111.22 	age, including students receiving special education services, up to and including graduation 
111.23 	and the issuance of a secondary or high school diploma.
111.24 	(e) The Department of Human Services is the agency responsible for screening and 
111.25 	investigating allegations of maltreatment of minors in an EIDBI agency operating under 
111.26 	sections 245A.142 and 256B.0949.
111.27 	(f) A health or corrections agency receiving a report may request the local welfare agency 
111.28 	to provide assistance pursuant to this section and sections 260E.20 and 260E.22.
111.29 	(g) The Department of Children, Youth, and Families is the agency responsible for 
111.30 	screening and investigating allegations of maltreatment in facilities or programs not listed 
111.31 	in paragraph (a) that are licensed or certified under chapters 142B and 142C.

112.1 	Sec. 34. Minnesota Statutes 2025 Supplement, section 626.5572, subdivision 13, is amended 
112.2 	to read:
112.3 		Subd. 13.Lead investigative agency. "Lead investigative agency" is the primary 
112.4 	administrative agency responsible for investigating reports made under section 626.557.
112.5 	(a) The Department of Health is the lead investigative agency for facilities or services 
112.6 	licensed or required to be licensed as hospitals, home care providers, nursing homes, boarding 
112.7 	care homes, hospice providers, residential facilities that are also federally certified as 
112.8 	intermediate care facilities that serve people with developmental disabilities, federally 
112.9 	certified psychiatric residential treatment facilities, or any other facility or service not listed 
112.10 	in this subdivision that is licensed or required to be licensed by the Department of Health 
112.11 	for the care of vulnerable adults. "Home care provider" has the meaning provided in section 
112.12 	144A.43, subdivision 4, and applies when care or services are delivered in the vulnerable 
112.13 	adult's home.
112.14 	(b) The Department of Human Services is the lead investigative agency for facilities or 
112.15 	services licensed or required to be licensed as adult day care, adult foster care, community 
112.16 	residential settings, programs for people with disabilities, EIDBI agencies, family adult day 
112.17 	services, mental health programs, mental health clinics, substance use disorder programs, 
112.18 	the Minnesota Sex Offender Program, or any other facility or service not listed in this 
112.19 	subdivision that is licensed or required to be licensed by the Department of Human Services, 
112.20 	except federally certified psychiatric residential treatment facilities. The Department of 
112.21 	Human Services is also the lead investigative agency for unlicensed EIDBI agencies under 
112.22 	section 256B.0949.
112.23 	(c) The county social service agency or its designee is the lead investigative agency for 
112.24 	all other reports, including but not limited to reports involving vulnerable adults receiving 
112.25 	services from a personal care provider organization under section 256B.0659.

112.26 	Sec. 35. NEW BACKGROUND STUDIES FOR INDIVIDUALS NOT IN NETSTUDY 
112.27 	2.0.
 112.28 	By March 1, 2027, the commissioner of human services and counties must conduct new 
112.29 	background studies for all individuals specified under Minnesota Statutes, section 245C.03, 
112.30 	subdivision 1, paragraph (a), clauses (2) to (6), and affiliated with a child foster family 
112.31 	setting license holder, adult foster care or family adult day services and with a family child 
112.32 	care license holder, or a legal nonlicensed child care provider authorized under Minnesota 
112.33 	Statutes, chapter 142E. The commissioner and counties must follow the requirements in 
112.34 	Minnesota Statutes, section 245C.04, subdivision 1, paragraphs (e) and (f), when conducting 
113.1 	the background studies under this section. The new background studies must be submitted 
113.2 	through NETStudy 2.0.

113.3 	EFFECTIVE DATE. This section is effective September 1, 2026.

113.4 	Sec. 36. REPEALER.
 113.5 	(a) Minnesota Statutes 2025 Supplement, section 245A.10, subdivision 3a, is repealed.
113.6 	(b) Minnesota Rules, part 9505.2165, subpart 4, is repealed.

113.7 	EFFECTIVE DATE. Paragraph (a) is effective October 1, 2026.

113.8 	ARTICLE 3
113.9 	BACKGROUND STUDIES

113.10 	Section 1. Minnesota Statutes 2025 Supplement, section 245C.02, subdivision 15a, is 
113.11 	amended to read:
113.12 		Subd. 15a.Reasonable cause to require a national criminal history record check. (a) 
113.13 	"Reasonable cause to require a national criminal history record check" means information 
113.14 	or circumstances exist that provide the commissioner with articulable suspicion that further 
113.15 	pertinent information may exist concerning a background study subject that merits conducting 
113.16 	a national criminal history record check on that subject. The commissioner has reasonable 
113.17 	cause to require a national criminal history record check when:
113.18 	(1) information from the Bureau of Criminal Apprehension indicates that the subject is 
113.19 	a multistate offender;
113.20 	(2) information from the Bureau of Criminal Apprehension indicates that multistate 
113.21 	offender status is undetermined;
113.22 	(3) the commissioner has received a report from the subject or a third party indicating 
113.23 	that the subject has a criminal history in a jurisdiction other than Minnesota; or
113.24 	(4) information from the Bureau of Criminal Apprehension for a state-based name and 
113.25 	date of birth background study in which the subject is a minor that indicates that the subject 
113.26 	has a criminal history.
113.27 	(b) In addition to the circumstances described in paragraph (a), the commissioner has 
113.28 	reasonable cause to require a national criminal history record check if the subject is not 
113.29 	currently residing in Minnesota or resided in a jurisdiction other than Minnesota during the 
113.30 	previous five years.
114.1 	(c) Reasonable cause to require a national criminal history check does not apply to family 
114.2 	child foster care or, adoption, adult day services, or adult foster care studies.

114.3 	EFFECTIVE DATE. This section is effective January 25, 2028.

114.4 	Sec. 2. Minnesota Statutes 2024, section 245C.03, subdivision 3a, is amended to read:
114.5 		Subd. 3a.Personal care assistance provider agency; background studies. Personal 
114.6 	care assistance provider agencies enrolled to provide personal care assistance services under 
114.7 	the medical assistance program must meet the following requirements:
114.8 	(1) owners who have a five percent interest or more, board members, and all managing 
114.9 	employees are subject to a background study as provided in this chapter. This requirement 
114.10 	applies to currently enrolled personal care assistance provider agencies and agencies seeking 
114.11 	enrollment as a personal care assistance provider agency. "Managing employee" has the 
114.12 	same meaning as in Code of Federal Regulations, title 42, section 455.101. An organization 
114.13 	is barred from enrollment if:
114.14 	(i) the organization has not initiated background studies of owners and managing 
114.15 	employees; or
114.16 	(ii) the organization has initiated background studies of owners and managing employees 
114.17 	and the commissioner has sent the organization a notice that an owner or managing employee 
114.18 	of the organization has been disqualified under section 245C.14, and the owner or managing 
114.19 	employee has not received a set aside of the disqualification under section 245C.22; and
114.20 	(2) a background study must be initiated and completed for all employee and volunteer 
114.21 	qualified professionals.

114.22 	EFFECTIVE DATE. This section is effective September 15, 2026.

114.23 	Sec. 3. Minnesota Statutes 2024, section 245C.03, subdivision 9, is amended to read:
114.24 		Subd. 9.Community first services and supports and financial management services 
114.25 	organizations. Individuals affiliated with Community First Services and Supports (CFSS) 
114.26 	agency-providers and Financial Management Services (FMS) providers enrolled to provide 
114.27 	CFSS services under the medical assistance program must meet the following requirements:
114.28 	(1) owners who have a five percent interest or more, board members, and all managing 
114.29 	employees are subject to a background study under this chapter. This requirement applies 
114.30 	to currently enrolled providers and agencies seeking enrollment. "Managing employee" has 
115.1 	the meaning given in Code of Federal Regulations, title 42, section 455.101. An organization 
115.2 	is barred from enrollment if:
115.3 	(i) the organization has not initiated background studies of owners and managing 
115.4 	employees; or
115.5 	(ii) the organization has initiated background studies of owners and managing employees 
115.6 	and the commissioner has sent the organization a notice that an owner or managing employee 
115.7 	of the organization has been disqualified under section 245C.14 and the owner or managing 
115.8 	employee has not received a set aside of the disqualification under section 245C.22;
115.9 	(2) a background study must be initiated and completed for all staff employees or 
115.10 	volunteers who will have direct contact with the participant to provide worker training and 
115.11 	development; and
115.12 	(3) a background study must be initiated and completed for all employee and volunteer 
115.13 	support workers.

115.14 	EFFECTIVE DATE. This section is effective September 15, 2026.

115.15 	Sec. 4. Minnesota Statutes 2024, section 245C.03, is amended by adding a subdivision to 
115.16 	read:
115.17 		Subd. 17.Providers of adult rehabilitative mental health services. The commissioner 
115.18 	shall conduct background studies on any individual who is an owner with an ownership 
115.19 	stake of at least five percent in an adult rehabilitative mental health services provider, an 
115.20 	operator of an adult rehabilitative mental health services provider, or an employee or 
115.21 	volunteer who has direct contact with people receiving adult rehabilitative mental health 
115.22 	services under section 256B.0623. For the purposes of this subdivision, "operator" includes 
115.23 	board members or other individuals who oversee the billing, management, or policies of 
115.24 	the services provided.

115.25 	EFFECTIVE DATE. This section is effective upon implementation in NETStudy 2.0, 
115.26 	but no sooner than October 13, 2026.

115.27 	Sec. 5. Minnesota Statutes 2024, section 245C.03, is amended by adding a subdivision to 
115.28 	read:
115.29 		Subd. 18.Providers of peer recovery support services. The commissioner shall conduct 
115.30 	background studies on any individual who is an owner with an ownership stake of at least 
115.31 	five percent in a peer recovery support services provider, an operator of a peer recovery 
115.32 	support services provider, or an employee or volunteer who has direct contact with people 
116.1 	receiving peer recovery support services under section 254B.052. For the purposes of this 
116.2 	subdivision, "operator" includes board members or other individuals who oversee the billing, 
116.3 	management, or policies of the services provided.

116.4 	EFFECTIVE DATE. This section is effective upon implementation in NETStudy 2.0, 
116.5 	but no sooner than December 15, 2026.

116.6 	Sec. 6. Minnesota Statutes 2024, section 245C.03, is amended by adding a subdivision to 
116.7 	read:
116.8 		Subd. 19.Providers of adult assertive community treatment services. The 
116.9 	commissioner shall conduct background studies on any individual who is an owner with an 
116.10 	ownership stake of at least five percent in an adult assertive community treatment services 
116.11 	provider, an operator of an adult assertive community treatment services provider, or an 
116.12 	employee or volunteer who has direct contact with people receiving adult assertive 
116.13 	community treatment services under section 256B.0622. For the purposes of this subdivision, 
116.14 	"operator" includes board members or other individuals who oversee the billing, management, 
116.15 	or policies of the services provided.

116.16 	EFFECTIVE DATE. This section is effective upon implementation in NETStudy 2.0, 
116.17 	but no sooner than February 16, 2027.

116.18 	Sec. 7. Minnesota Statutes 2025 Supplement, section 245C.05, subdivision 5, is amended 
116.19 	to read:
116.20 		Subd. 5.Fingerprints and photograph. (a) Notwithstanding paragraph (c), for 
116.21 	background studies conducted by the commissioner for current or prospective child foster 
116.22 	or adoptive parents, and for any adult working in a children's residential facility, the subject 
116.23 	of the background study shall provide the commissioner with a set of classifiable fingerprints 
116.24 	obtained from an authorized agency for a national criminal history record check.
116.25 	(b) Notwithstanding paragraph (c), for background studies conducted by the commissioner 
116.26 	for Head Start programs, the subject of the background study shall provide the commissioner 
116.27 	with a set of classifiable fingerprints obtained from an authorized agency for a national 
116.28 	criminal history record check.
116.29 	(c) For background studies initiated on or after the implementation of NETStudy 2.0, 
116.30 	except as provided under subdivision 5a, every subject of a background study must provide 
116.31 	the commissioner with a set of the background study subject's classifiable fingerprints and 
116.32 	photograph. The photograph and fingerprints must be recorded at the same time by the 
117.1 	authorized fingerprint collection vendor or vendors and sent to the commissioner through 
117.2 	the commissioner's secure data system described in section 245C.32, subdivision 1a, 
117.3 	paragraph (b).
117.4 	(d) The fingerprints shall be submitted by the commissioner to the Bureau of Criminal 
117.5 	Apprehension and, when specifically required by law, submitted to the Federal Bureau of 
117.6 	Investigation for a national criminal history record check.
117.7 	(e) The fingerprints must not be retained by the Department of Public Safety, Bureau 
117.8 	of Criminal Apprehension, or the commissioner. The Federal Bureau of Investigation will 
117.9 	not retain background study subjects' fingerprints.
117.10 	(f) The authorized fingerprint collection vendor or vendors shall, for purposes of verifying 
117.11 	the identity of the background study subject, be able to view the identifying information 
117.12 	entered into NETStudy 2.0 by the entity that initiated the background study, but shall not 
117.13 	retain the subject's fingerprints, photograph, or information from NETStudy 2.0. The 
117.14 	authorized fingerprint collection vendor or vendors shall retain no more than the name and 
117.15 	date and time the subject's fingerprints were recorded and sent, only as necessary for auditing 
117.16 	and billing activities.
117.17 	(g) For any background study conducted under this chapter, except for family child 
117.18 	foster care or, adoption, adult day services, or adult foster care studies, the subject shall 
117.19 	provide the commissioner with a set of classifiable fingerprints when the commissioner has 
117.20 	reasonable cause to require a national criminal history record check as defined in section 
117.21 	245C.02, subdivision 15a.

117.22 	EFFECTIVE DATE. This section is effective January 25, 2028.

117.23 	Sec. 8. Minnesota Statutes 2025 Supplement, section 245C.13, subdivision 2, is amended 
117.24 	to read:
117.25 		Subd. 2.Activities pending completion of background study. The subject of a 
117.26 	background study may not perform any activity requiring a background study under 
117.27 	paragraph (c) until the commissioner has issued one of the notices under paragraph (a).
117.28 	(a) Notices from the commissioner required prior to activity under paragraph (c) include:
117.29 	(1) a notice of the study results under section 245C.17 stating that:
117.30 	(i) the individual is not disqualified; or
117.31 	(ii) more time is needed to complete the study but the individual is not required to be 
117.32 	removed from direct contact or access to people receiving services prior to completion of 
118.1 	the study as provided under section 245C.17, subdivision 1, paragraph (b) or (c). The notice 
118.2 	that more time is needed to complete the study must also indicate whether the individual is 
118.3 	required to be under continuous direct supervision prior to completion of the background 
118.4 	study. When more time is necessary to complete a background study of an individual 
118.5 	affiliated with a Title IV-E eligible children's residential facility or foster residence setting, 
118.6 	the individual may not work in the facility or setting regardless of whether or not the 
118.7 	individual is supervised;
118.8 	(2) a notice that a disqualification has been set aside under section 245C.23; or
118.9 	(3) a notice that a variance has been granted related to the individual under section 
118.10 	245C.30.
118.11 	(b) For a background study affiliated with a licensed child care center or certified 
118.12 	license-exempt child care center, the notice sent under paragraph (a), clause (1), item (ii), 
118.13 	must not be issued until the commissioner receives a qualifying result for the individual for 
118.14 	the fingerprint-based national criminal history record check or the fingerprint-based criminal 
118.15 	history information from the Bureau of Criminal Apprehension. The notice must require 
118.16 	the individual to be under continuous direct supervision prior to completion of the remainder 
118.17 	of the background study except as permitted in subdivision 3.
118.18 	(c) Activities prohibited prior to receipt of notice under paragraph (a) include:
118.19 	(1) being issued a license;
118.20 	(2) living in the household where the licensed program will be provided;
118.21 	(3) providing direct contact services to persons served by a program unless the subject 
118.22 	is under continuous direct supervision;
118.23 	(4) having access to persons receiving services if the background study was completed 
118.24 	under section 144.057, subdivision 1, or 245C.03, subdivision 1, paragraph (a), clause (2), 
118.25 	(5), or (6), unless the subject is under continuous direct supervision;
118.26 	(5) for licensed child care centers and certified license-exempt child care centers, 
118.27 	providing direct contact services to persons served by the program;
118.28 	(6) for children's residential facilities or foster residence settings, working in the facility 
118.29 	or setting; or
118.30 	(7) for background studies affiliated with a personal care provider organization, except 
118.31 	as provided in section 245C.03, subdivision 3b, early intensive developmental and behavioral 
118.32 	intervention provider, housing support or supplementary services provider, special 
119.1 	transportation services provider, or community first services and supports provider before 
119.2 	a personal care assistant an individual provides services, the personal care assistance provider 
119.3 	agency entity must initiate a background study of the personal care assistant individual
119.4 	under this chapter and the personal care assistance provider agency entity must have received 
119.5 	a notice from the commissioner that the personal care assistant individual is:
119.6 	(i) not disqualified under section 245C.14; or
119.7 	(ii) disqualified, but the personal care assistant individual has received a set aside of the 
119.8 	disqualification under section 245C.22; or.
119.9 	(8) for background studies affiliated with an early intensive developmental and behavioral 
119.10 	intervention provider, before an individual provides services, the early intensive 
119.11 	developmental and behavioral intervention provider must initiate a background study for 
119.12 	the individual under this chapter and the early intensive developmental and behavioral 
119.13 	intervention provider must have received a notice from the commissioner that the individual 
119.14 	is:
119.15 	(i) not disqualified under section 245C.14; or
119.16 	(ii) disqualified, but the individual has received a set-aside of the disqualification under 
119.17 	section 245C.22.

119.18 	EFFECTIVE DATE. This section is effective September 15, 2026.

119.19 	Sec. 9. Minnesota Statutes 2025 Supplement, section 245C.16, subdivision 1, is amended 
119.20 	to read:
119.21 		Subdivision 1.Determining immediate risk of harm. (a) If the commissioner determines 
119.22 	that the individual studied has a disqualifying characteristic, the commissioner shall review 
119.23 	the information immediately available and make a determination as to the subject's immediate 
119.24 	risk of harm to persons served by the program where the individual studied will have direct 
119.25 	contact with, or access to, people receiving services.
119.26 	(b) The commissioner shall consider all relevant information available, including the 
119.27 	following factors in determining the immediate risk of harm:
119.28 	(1) the recency of the disqualifying characteristic;
119.29 	(2) the recency of discharge from probation for the crimes;
119.30 	(3) the number of disqualifying characteristics;
119.31 	(4) the intrusiveness or violence of the disqualifying characteristic;
120.1 	(5) the vulnerability of the victim involved in the disqualifying characteristic;
120.2 	(6) the similarity of the victim to the persons served by the program where the individual 
120.3 	studied will have direct contact;
120.4 	(7) whether the individual has a disqualification from a previous background study that 
120.5 	has not been set aside;
120.6 	(8) if the individual has a disqualification which may not be set aside because it is a 
120.7 	permanent bar under section 245C.24, subdivision 1, or the individual is a child care 
120.8 	background study subject who has a felony-level conviction for a drug-related offense in 
120.9 	the last five years, the commissioner may order the immediate removal of the individual 
120.10 	from any position allowing direct contact with, or access to, persons receiving services from 
120.11 	the program and from working in a children's residential facility or foster residence setting; 
120.12 	and
120.13 	(9) if the individual has a disqualification which may not be set aside because it is a 
120.14 	permanent bar under section 245C.24, subdivision 2, or the individual is a child care 
120.15 	background study subject who has a felony-level conviction for a drug-related offense during 
120.16 	the last five years, the commissioner may order the immediate removal of the individual 
120.17 	from any position allowing direct contact with or access to persons receiving services from 
120.18 	the center and from working in a licensed child care center or certified license-exempt child 
120.19 	care center.
120.20 	(c) This section does not apply when the subject of a background study is regulated by 
120.21 	a health-related licensing board as defined in chapter 214, and the subject is determined to 
120.22 	be responsible for substantiated maltreatment under section 626.557 or chapter 260E.
120.23 	(d) This section does not apply to a background study related to an initial application 
120.24 	for a child foster family setting license.
120.25 	(e) Except for paragraph (f), this section does not apply to a background study that is 
120.26 	also subject to the requirements under section 256B.0659, subdivisions 11 and 13, for a 
120.27 	personal care assistant or a qualified professional as defined in section 256B.0659, 
120.28 	subdivision 1, or to a background study for an individual providing early intensive 
120.29 	developmental and behavioral intervention services under section 256B.0949 245C.13, 
120.30 	subdivision 2, paragraph (c), clause (7).
120.31 	(f) If the commissioner has reason to believe, based on arrest information or an active 
120.32 	maltreatment investigation, that an individual poses an imminent risk of harm to persons 
120.33 	receiving services, the commissioner may order that the person be continuously supervised 
121.1 	or immediately removed pending the conclusion of the maltreatment investigation or criminal 
121.2 	proceedings.

121.3 	EFFECTIVE DATE. This section is effective September 15, 2026.

121.4 	ARTICLE 4
121.5 	BEHAVIORAL HEALTH

121.6 	Section 1. Minnesota Statutes 2025 Supplement, section 254B.0503, subdivision 1, is 
121.7 	amended to read:
121.8 		Subdivision 1.Eligible vendor requirements. (a) Vendors of room and board are 
121.9 	eligible for behavioral health fund payment if the vendor:
121.10 	(1) has rules prohibiting residents bringing chemicals into the facility or using chemicals 
121.11 	while residing in the facility and provide consequences for infractions of those rules;
121.12 	(2) is determined to meet applicable health and safety requirements;
121.13 	(3) is not a jail or prison;
121.14 	(4) is not concurrently receiving funds under chapter 256I for the recipient;
121.15 	(5) admits individuals who are 18 years of age or older;
121.16 	(6) is registered as a board and lodging or lodging establishment according to section 
121.17 	157.17;
121.18 	(7) has awake staff on site whenever a client is present;
121.19 	(8) has staff who are at least 18 years of age and meet the requirements of section 
121.20 	245G.11, subdivision 1, paragraph (b);
121.21 	(9) has emergency behavioral procedures that meet the requirements of section 245G.16;
121.22 	(10) meets the requirements of section 245G.08, subdivision 5, if administering 
121.23 	medications to clients;
121.24 	(11) meets the abuse prevention requirements of section 245A.65, including a policy on 
121.25 	fraternization and the mandatory reporting requirements of section 626.557;
121.26 	(12) documents coordination with the treatment provider to ensure compliance with 
121.27 	section 254B.03, subdivision 2;
121.28 	(13) protects client funds and ensures freedom from exploitation by meeting the 
121.29 	provisions of section 245A.04, subdivision 13;
122.1 	(14) has a grievance procedure that meets the requirements of section 245G.15, 
122.2 	subdivision 2; and
122.3 	(15) has sleeping and bathroom facilities for men and women separated by a door that 
122.4 	is locked, has an alarm, or is supervised by awake staff.
122.5 	(b) Programs providing children's mental health crisis admissions and stabilization under 
122.6 	section 245.4882, subdivision 6, are eligible vendors of room and board.
122.7 	(c) Programs providing children's residential services under section 245.4882, except 
122.8 	services for individuals who have a placement under chapter 260C or 260D, are eligible 
122.9 	vendors of room and board.
122.10 	(d) A vendor that is not licensed as a residential treatment program must have a policy 
122.11 	to address staffing coverage when a client may unexpectedly need to be present at the room 
122.12 	and board site.
122.13 	(e) No new vendors for room and board services may be approved after June 30, 2025, 
122.14 	to receive payments from the behavioral health fund, under the provisions of section 254B.04, 
122.15 	subdivision 2a. Room and board vendors that were approved and operating prior to July 1, 
122.16 	2025, may continue to receive payments from the behavioral health fund for services provided 
122.17 	until June 30, 2027 December 31, 2026. Room and board vendors providing services in 
122.18 	accordance with section 254B.04, subdivision 2a, will no longer be eligible to claim 
122.19 	reimbursement for room and board services provided on or after July January 1, 2027.

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

122.21 	Sec. 2. [256B.0618] COVERAGE FOR DETAINED INDIVIDUALS.
122.22 	(a) An inmate of a correctional facility who is conditionally released under section 
122.23 	241.26, 244.065, or 631.425 is eligible for medical assistance if the individual:
122.24 	(1) does not require the security of a public detention facility and is housed:
122.25 	(i) in a halfway house or community correction center; or
122.26 	(ii) under house arrest and monitored by electronic surveillance in a residence approved 
122.27 	by the commissioner of corrections; and
122.28 	(2) meets all other eligibility requirements of this chapter.
122.29 	(b) An individual, regardless of age, who is considered an inmate of a public institution 
122.30 	as defined in Code of Federal Regulations, title 42, section 435.1010, and who meets the 
123.1 	eligibility requirements in section 256B.056 is not eligible for medical assistance, except 
123.2 	for covered medical assistance services received:
123.3 	(1) while an inpatient in a medical institution as defined in Code of Federal Regulations, 
123.4 	title 42, section 435.1010;
123.5 	(2) by an eligible juvenile in accordance with the Consolidated Appropriations Act, 
123.6 	2023, Public Law 117-328, part 5121; and
123.7 	(3) by an eligible individual under with section 256B.0761.
123.8 	(c) Security logistics and costs related to the inpatient treatment of an inmate are the 
123.9 	responsibility of the entity that has jurisdiction over the inmate.

123.10 	EFFECTIVE DATE. This section is effective January 1, 2027.

123.11 	Sec. 3. [256B.0619] CARCERAL TARGETED CASE MANAGEMENT SERVICES.
123.12 		Subdivision 1.Generally. Effective January 1, 2027, or upon federal approval, whichever 
123.13 	is later, medical assistance covers carceral targeted case management services in accordance 
123.14 	with section 256B.0761 and United States Code, title 42, sections 1396a(a)(84); 1396d(a)(32); 
123.15 	1397bb(d); and 1397jj(b)(2) and (7).
123.16 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
123.17 	meanings given.
123.18 	(b) "Comprehensive care plan" means a person-centered plan that includes goals, tasks, 
123.19 	and services identified through screening and assessments and agreed upon by all parties. 
123.20 	A comprehensive care plan includes but is not limited to identifying resources and services 
123.21 	necessary to meet the individual's physical, behavioral health, and health-related social 
123.22 	needs prerelease and postrelease.
123.23 	(c) "Consultation" means communication from a carceral targeted case manager to other 
123.24 	providers working with the same justice-involved individual to (1) inform, inquire, and 
123.25 	instruct providers on the individual's symptoms, strategies for effective engagement, care 
123.26 	and intervention needs, and treatment expectations across service settings, and (2) direct 
123.27 	and coordinate clinical service components provided to the justice-involved individual. 
123.28 	Service settings and components include but are not limited to education services, social 
123.29 	services, probation, an individual's home, primary care, medication prescribers, disabilities 
123.30 	services, and services from other mental health providers.
123.31 	(d) "Targeted case management for justice-involved individuals" means the provision 
123.32 	of both county targeted case management and public or private vendor service coordination 
124.1 	services to bridge prerelease and postrelease medical assistance services that support the 
124.2 	physical, behavioral, and health-related social needs of justice-involved individuals.
124.3 	(e) "Targeted case management services" means services that assist medical assistance 
124.4 	eligible persons with accessing needed medical, social, educational, and other services.
124.5 		Subd. 3.Eligibility. The following individuals are eligible for carceral targeted case 
124.6 	management services:
124.7 	(1) individuals eligible for medical assistance who meet all eligibility requirements under 
124.8 	United States Code, title 42, section 1396a(nn);
124.9 	(2) individuals eligible for medical assistance who meet eligibility requirements for the 
124.10 	Children's Health Insurance Program under United States Code, title 42, section 1397jj(b)(7); 
124.11 	or
124.12 	(3) individuals eligible for medical assistance who are currently incarcerated at a section 
124.13 	1115 reentry demonstration pilot facility and meet the participation requirements in section 
124.14 	256B.0761, subdivision 2.
124.15 		Subd. 4.Carceral targeted case management services.  (a) For individuals eligible for 
124.16 	services under subdivision 3, clause (1) or (2), carceral targeted case management care 
124.17 	coordination is available for 30 days before release and up to 180 days postrelease. For 
124.18 	individuals eligible for services under subdivision 3, clause (3), carceral targeted case 
124.19 	management care coordination is available for up to 90 days before release and up to 180 
124.20 	days postrelease.
124.21 	(b) Carceral targeted case management care coordination includes:
124.22 	(1) comprehensive assessment and periodic reassessment addressing physical, behavioral, 
124.23 	and health-related social needs in accordance with section 256B.0761 and United States 
124.24 	Code, title 42, sections 1396a(nn) and 1397jj(b)(7);
124.25 	(2) comprehensive care plans, including but not limited to:
124.26 	(i) the desired goals of the individual;
124.27 	(ii) the individual's preferences for services and supports;
124.28 	(iii) formal and informal services and supports based on areas of assessment, such as 
124.29 	social health, mental health, residence, family, education and vocation, safety, legal, 
124.30 	self-determination, financial, and chemical health; and
124.31 	(iv) housing arrangements postrelease;
125.1 	(3) regular review and revision of the comprehensive care plan with the individual to 
125.2 	ensure needs are adequately met by referrals and supports;
125.3 	(4) coordination of referrals, which must consist of efforts beyond providing a list of 
125.4 	resources, to bridge prerelease to postrelease medical assistance services, including but not 
125.5 	limited to referrals to community-based services identified as a need on the comprehensive 
125.6 	care plan;
125.7 	(5) warm handoffs and follow-up post release;
125.8 	(6) monitoring and evaluation of services identified in the comprehensive care plan to 
125.9 	ensure personal outcomes are met and to ensure satisfaction with services and service 
125.10 	delivery;
125.11 	(7) consultation with other professionals, including but not limited to community-based 
125.12 	mental health providers; and
125.13 	(8) completion and maintenance of necessary documentation that supports and verifies 
125.14 	the activities in this section.
125.15 		Subd. 5.Carceral targeted case management provider standards. Providers eligible 
125.16 	to receive medical assistance reimbursement under this section must enroll as a Minnesota 
125.17 	health care programs provider. To qualify as a provider of carceral targeted case management 
125.18 	services, a provider must:
125.19 	(1) have a minimum of a bachelor's degree or a license in a health or human services 
125.20 	field, comparable training and two years of experience in human services, or credentials 
125.21 	from an American Indian Tribe under section 256B.02, subdivision 7;
125.22 	(2) demonstrate the capacity and experience to provide targeted case management 
125.23 	activities for justice-involved individuals as defined in subdivision 2;
125.24 	(3) be able to coordinate and connect community resources needed by the recipient;
125.25 	(4) demonstrate administrative capacity and experience to serve the justice-involved 
125.26 	population for which the provider will provide services and to ensure quality of services 
125.27 	under state and federal requirements;
125.28 	(5) have a financial management system that provides accurate documentation of services 
125.29 	and costs under state and federal requirements;
125.30 	(6) demonstrate capacity to document and maintain individual case records under state 
125.31 	and federal requirements;
125.32 	(7) demonstrate the capacity to coordinate with county administrative functions;
126.1 	(8) be able to coordinate with health care providers to ensure access to necessary health 
126.2 	care services;
126.3 	(9) have a procedure that:
126.4 	(i) notifies the recipient of any conflict of interest if the targeted case management service 
126.5 	provider also provides the recipient's services and supports;
126.6 	(ii) provides information on all potential conflicts of interest;
126.7 	(iii) obtains the recipient's informed consent; and
126.8 	(iv) provides the recipient with alternatives; and
126.9 	(10) demonstrate the capacity to achieve the following performance outcomes: (i) access; 
126.10 	(ii) quality; and (iii) consumer satisfaction.
126.11 		Subd. 6.Medical assistance payment and rate setting. (a) Carceral targeted case 
126.12 	management rates are equal to rates authorized by the commissioner for relocation targeted 
126.13 	case management under section 256B.0621, subdivision 10.
126.14 	(b) The carceral targeted case management rate only includes eligible services delivered 
126.15 	to an eligible recipient by an eligible provider.

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

126.17 	Sec. 4. Minnesota Statutes 2024, section 256B.0625, is amended by adding a subdivision 
126.18 	to read:
126.19 		Subd. 77.Carceral targeted case management. Effective January 1, 2027, or upon 
126.20 	federal approval, whichever is later, medical assistance covers carceral targeted case 
126.21 	management services under 256B.0619.

126.22 	Sec. 5. Minnesota Statutes 2024, section 256B.0761, subdivision 2, is amended to read:
126.23 		Subd. 2.Eligible individuals. Notwithstanding section 256B.055, subdivision 14,
126.24 	Individuals are eligible to receive services under this demonstration if they are eligible under 
126.25 	section 256B.055, subdivision 3a, 6, 7, 7a, 9, 15, 16, or 17, as determined by the 
126.26 	commissioner in collaboration with correctional facilities, local governments, and Tribal 
126.27 	governments.

126.28 	Sec. 6. Laws 2025, First Special Session chapter 9, article 4, section 2, the effective date, 
126.29 	is amended to read:

126.30 	EFFECTIVE DATE. This section is effective January July 1, 2027 2026.

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

127.2 	Sec. 7. Laws 2025, First Special Session chapter 9, article 4, section 23, the effective date, 
127.3 	is amended to read:

127.4 	EFFECTIVE DATE. This section is effective January July 1, 2027 2026.

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

127.6 	Sec. 8. Laws 2025, First Special Session chapter 9, article 4, section 38, the effective date, 
127.7 	is amended to read:

127.8 	EFFECTIVE DATE. This section is effective January July 1, 2027 2026.

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

127.10 	Sec. 9. Laws 2025, First Special Session chapter 9, article 4, section 39, the effective date, 
127.11 	is amended to read:

127.12 	EFFECTIVE DATE. This section is effective January July 1, 2027 2026.

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

127.14 	Sec. 10. Laws 2025, First Special Session chapter 9, article 4, section 40, the effective 
127.15 	date, is amended to read:

127.16 	EFFECTIVE DATE. This section is effective January July 1, 2027 2026.

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

127.18 	Sec. 11. Laws 2025, First Special Session chapter 9, article 4, section 41, the effective 
127.19 	date, is amended to read:

127.20 	EFFECTIVE DATE. This section is effective January July 1, 2027 2026.

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

127.22 	Sec. 12. Laws 2025, First Special Session chapter 9, article 4, section 42, the effective 
127.23 	date, is amended to read:

127.24 	EFFECTIVE DATE. This section is effective January July 1, 2027 2026.

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

128.1 	Sec. 13. Laws 2025, First Special Session chapter 9, article 4, section 43, the effective 
128.2 	date, is amended to read:

128.3 	EFFECTIVE DATE. This section is effective January July 1, 2027 2026.

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

128.5 	Sec. 14. Laws 2025, First Special Session chapter 9, article 4, section 44, the effective 
128.6 	date, is amended to read:

128.7 	EFFECTIVE DATE. This section is effective January July 1, 2027 2026.

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

128.9 	Sec. 15. Laws 2025, First Special Session chapter 9, article 4, section 50, the effective 
128.10 	date, is amended to read:

128.11 	EFFECTIVE DATE. This section is effective January July 1, 2027 2026.

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

128.13 	Sec. 16. Laws 2025, First Special Session chapter 9, article 4, section 51, is amended to 
128.14 	read:
128.15 	Sec. 51. RECOVERY RESIDENCE WORK GROUP.
 128.16 	(a) The commissioner of human services must convene a work group to develop 
128.17 	recommendations specific to recovery residences. The work group must:
128.18 	(1) produce a report that examines how other states fund recovery residences, identifying 
128.19 	best practices and models that could be applicable to Minnesota;
128.20 	(2) engage with stakeholders to ensure meaningful collaboration with key external 
128.21 	stakeholders on the ideas being developed that will inform the final plan and 
128.22 	recommendations; and
128.23 	(3) create an implementable plan addressing housing needs for individuals in outpatient 
128.24 	substance use disorder treatment that includes:
128.25 	(i) clear strategies for aligning housing models with individual treatment needs;
128.26 	(ii) an assessment of funding streams, including potential federal funding sources;
128.27 	(iii) a timeline for implementation with key milestones and action steps;
129.1 	(iv) recommendations for future resource allocation to ensure long-term housing stability 
129.2 	for individuals in recovery;
129.3 	(v) specific recommendations for policy or legislative changes that may be required to 
129.4 	support sustainable recovery housing solutions, including challenges faced by recovery 
129.5 	residences resulting from state and local housing regulations and ordinances; and
129.6 	(vi) recommendations for potentially delegating the commissioner's recovery residence 
129.7 	certification duties under Minnesota Statutes, sections 254B.21 to 254B.216 to a third-party 
129.8 	organization.
129.9 	(b) The work group must include but is not limited to:
129.10 	(1) at least two designees from the Department of Human Services representing: (i) 
129.11 	behavioral health; and (ii) homelessness and housing and support services;
129.12 	(2) the commissioner of health or a designee;
129.13 	(3) two people who have experience living in a recovery residence;
129.14 	(4) representatives from at least three substance use disorder lodging facilities currently 
129.15 	operating in Minnesota;
129.16 	(5) three representatives from county social services agencies, at least one from inside 
129.17 	the seven-county metropolitan area and one from outside the seven-county metropolitan 
129.18 	area;
129.19 	(6) a representative from a Tribal social services agency;
129.20 	(7) representatives from the state affiliate of the National Alliance for Recovery 
129.21 	Residences; and
129.22 	(8) representatives from state mental health advocacy and adult mental health provider 
129.23 	organizations.
129.24 	(c) The work group must meet at least monthly and as necessary to fulfill its 
129.25 	responsibilities. The commissioner of human services must provide administrative support 
129.26 	and meeting space for the work group. The work group may conduct meetings remotely.
129.27 	(d) The commissioner of human services must make appointments to the work group 
129.28 	by October 1, 2025, and convene the first meeting of the work group by January 15, 2026.
129.29 	(e) The work group must submit a final report with recommendations to the chairs and 
129.30 	ranking minority members of the legislative committees with jurisdiction over health and 
129.31 	human services policy and finance on or before January July 1, 2027 2026.

130.1 	Sec. 17. DIRECTION TO COMMISSIONER; CARCERAL TARGETED CASE 
130.2 	MANAGEMENT SERVICES BILLING UNITS.
 130.3 	The commissioner of human services must establish a new billing code for carceral 
130.4 	targeted case management services. The commissioner must identify reimbursement rates 
130.5 	for the newly defined codes, as required under Minnesota Statutes, section 256B.0619, 
130.6 	subdivision 6. The new billing codes must correspond to a 15-minute unit and must be 
130.7 	available for 180 days postrelease.

130.8 	EFFECTIVE DATE. This section is effective January 1, 2027, or upon federal approval, 
130.9 	whichever is later.

130.10 	Sec. 18. REPEALER.
 130.11 	Minnesota Statutes 2024, section 256B.055, subdivision 14, is repealed.

130.12 	EFFECTIVE DATE. This section is effective January 1, 2027, or upon federal approval, 
130.13 	whichever is later.

130.14 	ARTICLE 5
130.15 	UNIFORM SERVICE STANDARDS

130.16 	Section 1. Minnesota Statutes 2024, section 245.735, subdivision 6, is amended to read:
130.17 		Subd. 6.Section 223 of the Protecting Access to Medicare Act entities. (a) The 
130.18 	commissioner must request federal approval to participate in the demonstration program 
130.19 	established by section 223 of the Protecting Access to Medicare Act and, if approved, to 
130.20 	continue to participate in the demonstration program as long as federal funding for the 
130.21 	demonstration program remains available from the United States Department of Health and 
130.22 	Human Services. To the extent practicable, the commissioner shall align the requirements 
130.23 	of the demonstration program with the requirements under this section for CCBHCs receiving 
130.24 	medical assistance reimbursement under the authority of the state's Medicaid state plan. A 
130.25 	CCBHC may not apply to participate as a billing provider in both the CCBHC federal 
130.26 	demonstration and the benefit for CCBHCs under the medical assistance program.
130.27 	(b) The commissioner must follow federal payment guidance, including payment of the 
130.28 	CCBHC daily bundled rate for services rendered by CCBHCs to individuals who are dually 
130.29 	eligible for Medicare and medical assistance when Medicare is the primary payer for the 
130.30 	service. Services provided by a CCBHC operating under the authority of the state's Medicaid 
130.31 	state plan will not receive the prospective payment system rate for services rendered by 
131.1 	CCBHCs to individuals who are dually eligible for Medicare and medical assistance when 
131.2 	Medicare is the primary payer for the service.
131.3 	(c) Payment for services rendered by CCBHCs to individuals who have commercial 
131.4 	insurance as the primary payer and medical assistance as secondary payer is subject to the 
131.5 	requirements under section 256B.37. Services provided by a CCBHC operating under the 
131.6 	authority of the 223 demonstration or the state's Medicaid state plan will not receive the 
131.7 	prospective payment system rate for services rendered by CCBHCs to individuals who have 
131.8 	commercial insurance as the primary payer and medical assistance as the secondary payer.

131.9 	Sec. 2. Minnesota Statutes 2025 Supplement, section 245A.03, subdivision 2, is amended 
131.10 	to read:
131.11 		Subd. 2.Exclusion from licensure. (a) This chapter does not apply to:
131.12 	(1) residential or nonresidential programs that are provided to a person by an individual 
131.13 	who is related;
131.14 	(2) nonresidential programs that are provided by an unrelated individual to persons from 
131.15 	a single related family;
131.16 	(3) residential or nonresidential programs that are provided to adults who do not misuse 
131.17 	substances or have a substance use disorder, a mental illness, a developmental disability, a 
131.18 	functional impairment, or a physical disability;
131.19 	(4) sheltered workshops or work activity programs that are certified by the commissioner 
131.20 	of employment and economic development;
131.21 	(5) programs operated by a public school for children 33 months or older;
131.22 	(6) nonresidential programs primarily for children that provide care or supervision for 
131.23 	periods of less than three hours a day while the child's parent or legal guardian is in the 
131.24 	same building as the nonresidential program or present within another building that is 
131.25 	directly contiguous to the building in which the nonresidential program is located;
131.26 	(7) nursing homes or hospitals licensed by the commissioner of health except as specified 
131.27 	under section 245A.02;
131.28 	(8) board and lodge facilities licensed by the commissioner of health that do not provide 
131.29 	children's residential services under Minnesota Rules, chapter 2960, mental health or 
131.30 	substance use disorder treatment;
131.31 	(9) programs licensed by the commissioner of corrections;
132.1 	(10) recreation programs for children or adults that are operated or approved by a park 
132.2 	and recreation board whose primary purpose is to provide social and recreational activities;
132.3 	(11) noncertified boarding care homes unless they provide services for five or more 
132.4 	persons whose primary diagnosis is mental illness or a developmental disability;
132.5 	(12) programs for children such as scouting, boys clubs, girls clubs, and sports and art 
132.6 	programs, and nonresidential programs for children provided for a cumulative total of less 
132.7 	than 30 days in any 12-month period;
132.8 	(13) residential programs for persons with mental illness, that are located in hospitals;
132.9 	(14) camps licensed by the commissioner of health under Minnesota Rules, chapter 
132.10 	4630;
132.11 	(15) mental health outpatient services for adults with mental illness or children with 
132.12 	mental illness, except, effective January 1, 2028, for programs licensed under section 
132.13 	245A.044;
132.14 	(16) residential programs serving school-age children whose sole purpose is cultural or 
132.15 	educational exchange, until the commissioner adopts appropriate rules;
132.16 	(17) community support services programs as defined in section 245.462, subdivision 
132.17 	6, and family community support services as defined in section 245.4871, subdivision 17;
132.18 	(18) assisted living facilities licensed by the commissioner of health under chapter 144G;
132.19 	(19) substance use disorder treatment activities of licensed professionals in private 
132.20 	practice as defined in section 245G.01, subdivision 17;
132.21 	(20) consumer-directed community support service funded under the Medicaid waiver 
132.22 	for persons with developmental disabilities when the individual who provided the service 
132.23 	is:
132.24 	(i) the same individual who is the direct payee of these specific waiver funds or paid by 
132.25 	a fiscal agent, fiscal intermediary, or employer of record; and
132.26 	(ii) not otherwise under the control of a residential or nonresidential program that is 
132.27 	required to be licensed under this chapter when providing the service;
132.28 	(21) a county that is an eligible vendor under section 254B.0501 to provide care 
132.29 	coordination and comprehensive assessment services;
132.30 	(22) a recovery community organization that is an eligible vendor under section 
132.31 	254B.0501 to provide peer recovery support services; or
133.1 	(23) programs licensed by the commissioner of children, youth, and families in chapter 
133.2 	142B.
133.3 	(b) For purposes of paragraph (a), clause (6), a building is directly contiguous to a 
133.4 	building in which a nonresidential program is located if it shares a common wall with the 
133.5 	building in which the nonresidential program is located or is attached to that building by 
133.6 	skyway, tunnel, atrium, or common roof.
133.7 	(c) Except for the home and community-based services identified in section 245D.03, 
133.8 	subdivision 1, nothing in this chapter shall be construed to require licensure for any services 
133.9 	provided and funded according to an approved federal waiver plan where licensure is 
133.10 	specifically identified as not being a condition for the services and funding.

133.11 	EFFECTIVE DATE. This section is effective January 1, 2028.

133.12 	Sec. 3. [245A.044] LICENSED NONRESIDENTIAL BEHAVIORAL HEALTH 
133.13 	SERVICES.
133.14 		Subdivision 1.License required for certain nonresidential behavioral health 
133.15 	services.  (a) Beginning January 1, 2028, providers of nonresidential mental health and 
133.16 	substance use disorder services must obtain a license under this chapter to provide:
133.17 	(1) adult rehabilitative mental health services under section 245I.22;
133.18 	(2) children's therapeutic services and supports in the community under section 245I.30 
133.19 	and children's day treatment under section 245I.31;
133.20 	(3) crisis response services under section 245I.24; and
133.21 	(4) certified community behavioral health clinic services under section 245I.17.
133.22 	(b) As a condition of licensure, an applicant or license holder must demonstrate and 
133.23 	maintain verification of compliance with:
133.24 	(1) licensing requirements under this chapter and chapter 245I; and
133.25 	(2) applicable health care program requirements under Minnesota Rules, parts 9505.0170 
133.26 	to 9505.0475 and 9505.2160 to 9505.2245.
133.27 		Subd. 2.Implementation. (a) Beginning July 1, 2027, the commissioner must begin 
133.28 	issuing licenses to providers listed in subdivision 1. The commissioner must transition 
133.29 	providers certified under section 245I.011 and listed in subdivision 1 into licensure with a 
133.30 	phased-in schedule determined by the commissioner. The commissioner must communicate 
134.1 	the implementation schedule to providers at least three months before the application is 
134.2 	made available.
134.3 	(b) Applicants for licensure must have an approved certification under section 245I.011 
134.4 	at least 90 days before the date of the licensure application.
134.5 	(c) A provider's certification under section 245I.011, subdivision 5, paragraph (a), clauses 
134.6 	(2) to (4), or 6, paragraph (b), expires when the commissioner issues a decision on the 
134.7 	provider's license application.
134.8 	(d) Upon licensure, a license holder must notify clients and staff of policies and 
134.9 	procedures outlined in the application.
134.10 	(e) Notwithstanding paragraphs (a) and (c), subdivision 1, and sections 245I.17, 245I.22, 
134.11 	245I.24, 245I.30, and 245I.31, a provider listed under subdivision 1, paragraph (a), clauses 
134.12 	(1) to (4), and certified under section 245I.011 may continue operating past January 1, 2028, 
134.13 	until the commissioner issues a licensing decision if the provider submitted an application 
134.14 	before January 1, 2028.
134.15 	(f) If a provider fails to submit an application for licensure within the time frame in 
134.16 	paragraph (b), the commissioner must disenroll the provider from reimbursement for the 
134.17 	following services:
134.18 	(1) adult rehabilitative mental health services under section 256B.0623;
134.19 	(2) crisis response services under section 256B.0624;
134.20 	(3) children's therapeutic services and supports under section 256B.0943; and
134.21 	(4) certified community behavioral health clinics under section 256B.0625, subdivision 
134.22 	5m.
134.23 	(g) The commissioner must disenroll a provider listed in paragraph (f) from medical 
134.24 	assistance if:
134.25 	(1) the provider's licensing application has been denied or the license has been suspended 
134.26 	or revoked; and
134.27 	(2) the provider appealed the application denial or the license suspension or revocation, 
134.28 	and the commissioner issued a final order on the appeal affirming the action.

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

135.1 	Sec. 4. Minnesota Statutes 2025 Supplement, section 245A.10, subdivision 3, is amended 
135.2 	to read:
135.3 		Subd. 3.Application fee for initial license or certification. (a) Except as provided in 
135.4 	paragraphs (c) and, (d), and (f), for fees required under subdivision 1, an applicant for an 
135.5 	initial license or certification issued by the commissioner shall submit a $2,100 application 
135.6 	fee with each new application required under this subdivision. The application fee shall not 
135.7 	be prorated, is nonrefundable, and is in lieu of the annual license or certification fee that 
135.8 	expires on December 31. The commissioner shall not process an application until the 
135.9 	application fee is paid.
135.10 	(b) Except as provided in paragraph (c), an applicant shall apply for a license to provide 
135.11 	services at a specific location.
135.12 	(c) For a license to provide home and community-based services to persons with 
135.13 	disabilities or age 65 and older under chapter 245D, an applicant shall submit an application 
135.14 	to provide services statewide. For fees required under subdivision 1, an applicant for an 
135.15 	initial license issued by the commissioner to provide home and community-based services 
135.16 	under chapter 245D shall submit a $4,200 application fee with each new application.
135.17 	(d) For fees required under subdivision 1, an applicant for an initial license or certification 
135.18 	issued by the commissioner for children's residential facility or mental health clinic licensure 
135.19 	or certification shall submit a $500 application fee with each new application required under 
135.20 	this subdivision.
135.21 	(e) For fees required under subdivision 1, an applicant for an initial mental health clinic 
135.22 	certification issued by the commissioner shall submit a $2,100 application fee with each 
135.23 	new application required under this subdivision.
135.24 	(f) For fees required under subdivision 1, an applicant for an initial license issued by 
135.25 	the commissioner to provide services at a certified community behavioral health clinic under 
135.26 	section 245I.17 shall submit a $4,200 application fee with each new application.

135.27 	Sec. 5. Minnesota Statutes 2025 Supplement, section 245A.10, subdivision 4, is amended 
135.28 	to read:
135.29 		Subd. 4.License or certification fee for certain programs. (a)(1) A program licensed 
135.30 	to provide one or more of the home and community-based services and supports identified 
135.31 	under chapter 245D to persons with disabilities or age 65 and older, shall pay an annual 
135.32 	nonrefundable license fee based on revenues derived from the provision of services that 
136.1 	would require licensure under chapter 245D during the calendar year immediately preceding 
136.2 	the year in which the license fee is paid, according to the following schedule:

136.3	License Holder Annual Revenue
		License Fee
	
136.4	less than or equal to $10,000
		$250
	
136.5
136.6	greater than $10,000 but less than or 
equal to $25,000
		$375
	
136.7
136.8	greater than $25,000 but less than or 
equal to $50,000
		$500
	
136.9136.10
	greater than $50,000 but less than or 
equal to $100,000
		$625
	
136.11
136.12	greater than $100,000 but less than or 
equal to $150,000
		$750
	
136.13
136.14	greater than $150,000 but less than or 
equal to $200,000
		$1,000
	
136.15
136.16	greater than $200,000 but less than or 
equal to $250,000
		$1,250
	
136.17
136.18	greater than $250,000 but less than or 
equal to $300,000
		$1,500
	
136.19
136.20	greater than $300,000 but less than or 
equal to $350,000
		$1,750
	
136.21
136.22	greater than $350,000 but less than or 
equal to $400,000
		$2,000
	
136.23
136.24	greater than $400,000 but less than or 
equal to $450,000
		$2,250
	
136.25
136.26	greater than $450,000 but less than or 
equal to $500,000
		$2,500
	
136.27
136.28	greater than $500,000 but less than or 
equal to $600,000
		$2,850
	
136.29
136.30	greater than $600,000 but less than or 
equal to $700,000
		$3,200
	
136.31
136.32	greater than $700,000 but less than or 
equal to $800,000
		$3,600
	
136.33
136.34	greater than $800,000 but less than or 
equal to $900,000
		$3,900
	
136.35
136.36	greater than $900,000 but less than or 
equal to $1,000,000
		$4,250
	
136.37
136.38	greater than $1,000,000 but less than or 
equal to $1,250,000
		$4,550
	
136.39
136.40	greater than $1,250,000 but less than or 
equal to $1,500,000
		$4,900
	
136.41
136.42	greater than $1,500,000 but less than or 
equal to $1,750,000
		$5,200
	
136.43
136.44	greater than $1,750,000 but less than or 
equal to $2,000,000
		$5,500
	
137.1
137.2	greater than $2,000,000 but less than or 
equal to $2,500,000
		$5,900
	
137.3
137.4	greater than $2,500,000 but less than or 
equal to $3,000,000
		$6,200
	
137.5
137.6	greater than $3,000,000 but less than or 
equal to $3,500,000
		$6,500
	
137.7
137.8	greater than $3,500,000 but less than or 
equal to $4,000,000
		$7,200
	
137.9137.10
	greater than $4,000,000 but less than or 
equal to $4,500,000
		$7,800
	
137.11
137.12	greater than $4,500,000 but less than or 
equal to $5,000,000
		$9,000
	
137.13
137.14	greater than $5,000,000 but less than or 
equal to $7,500,000
		$10,000
	
137.15
137.16	greater than $7,500,000 but less than or 
equal to $10,000,000
		$14,000
	
137.17
137.18	greater than $10,000,000 but less than or 
equal to $12,500,000
		$18,000
	
137.19
137.20	greater than $12,500,000 but less than or 
equal to $15,000,000
		$25,000
	
137.21
137.22	greater than $15,000,000 but less than or 
equal to $17,500,000
		$28,000
	
137.23
137.24	greater than $17,500,000 but less than 
$20,000,000
		$32,000
	
137.25
137.26	greater than $20,000,000 but less than 
$25,000,000
		$36,000
	
137.27
137.28	greater than $25,000,000 but less than 
$30,000,000
		$45,000
	
137.29
137.30	greater than $30,000,000 but less than 
$35,000,000
		$55,000
	
137.31	greater than $35,000,000
		$75,000
	
137.32 	(2) If requested, the license holder shall provide the commissioner information to verify 
137.33 	the license holder's annual revenues or other information as needed, including copies of 
137.34 	documents submitted to the Department of Revenue.
137.35 	(3) At each annual renewal, a license holder may elect to pay the highest renewal fee, 
137.36 	and not provide annual revenue information to the commissioner.
137.37 	(4) A license holder that knowingly provides the commissioner incorrect revenue amounts 
137.38 	for the purpose of paying a lower license fee shall be subject to a civil penalty in the amount 
137.39 	of double the fee the provider should have paid.
138.1 	(b) A substance use disorder treatment program licensed under chapter 245G, to provide 
138.2 	substance use disorder treatment shall pay an annual nonrefundable license fee based on 
138.3 	the following schedule:

138.4		Licensed Capacity
	License Fee
	
138.5		1 to 24 persons
	$2,600
	
138.6		25 to 49 persons
	$3,000
	
138.7		50 to 74 persons
	$5,000
	
138.8		75 to 99 persons
	$10,000
	
138.9		100  to 199 persons
	$15,000
	
138.10		200 or more persons
	$20,000
	
138.11 	(c) A detoxification program licensed under Minnesota Rules, parts 9530.6510 to 
138.12 	9530.6590, or a withdrawal management program licensed under chapter 245F shall pay 
138.13 	an annual nonrefundable license fee based on the following schedule:

138.14		Licensed Capacity
	License Fee
	
138.15		1 to 24 persons
	$2,600
	
138.16		25 to 49 persons
	$3,000
	
138.17		50 or more persons
	$5,000
	
138.18 	A detoxification program that also operates a withdrawal management program at the same 
138.19 	location shall only pay one fee based upon the licensed capacity of the program with the 
138.20 	higher overall capacity.
138.21 	(d) A children's residential facility licensed under Minnesota Rules, chapter 2960, to 
138.22 	serve children shall pay an annual nonrefundable license fee based on the following schedule:

138.23		Licensed Capacity
	License Fee
	
138.24		1 to 24 persons
	$1,000
	
138.25		25 to 49 persons
	$1,100
	
138.26		50 to 74 persons
	$1,200
	
138.27		75 to 99 persons
	$1,300
	
138.28		100 or more persons
	$1,400
	
138.29 	(e) A residential facility licensed under section 245I.23 or Minnesota Rules, parts 
138.30 	9520.0500 to 9520.0670, to serve persons with mental illness shall pay an annual 
138.31 	nonrefundable license fee based on the following schedule:

138.32		Licensed Capacity
	License Fee
	
138.33		1 to 24 persons
	$2,600
	
139.1		25  to 49 persons
	$3,000
	
139.2		50 or more persons
	$20,000
	
139.3 	(f) A residential facility licensed under Minnesota Rules, parts 9570.2000 to 9570.3400, 
139.4 	to serve persons with physical disabilities shall pay an annual nonrefundable license fee 
139.5 	based on the following schedule:

139.6		Licensed Capacity
	License Fee
	
139.7		1 to 24 persons
	$450
	
139.8		25 to 49 persons
	$650
	
139.9		50 to 74 persons
	$850
	
139.10		75 to 99 persons
	$1,050
	
139.11		100 or more persons
	$1,250
	
139.12 	(g) A program licensed as an adult day care center licensed under Minnesota Rules, 
139.13 	parts 9555.9600 to 9555.9730, shall pay an annual nonrefundable license fee based on the 
139.14 	following schedule:

139.15		Licensed Capacity
	License Fee
	
139.16		1 to 24 persons
	$2,600
	
139.17		25 to 49 persons
	$3,000
	
139.18		50 to 74 persons
	$5,000
	
139.19		75 to 99 persons
	$10,000
	
139.20		100  to 199 persons
	$15,000
	
139.21		200 or more persons
	$20,000
	
139.22 	(h) A program licensed to provide treatment services to persons with sexual psychopathic 
139.23 	personalities or sexually dangerous persons under Minnesota Rules, parts 9515.3000 to 
139.24 	9515.3110, shall pay an annual nonrefundable license fee of $20,000.
139.25 	(i) A mental health clinic certified under section 245I.20 shall pay an annual 
139.26 	nonrefundable certification fee of $1,550 $3,000. If the mental health clinic provides services 
139.27 	at a primary location with satellite facilities, the satellite facilities shall be certified with the 
139.28 	primary location without an additional charge.
139.29 	(j) If a program subject to annual fees under paragraph (b) provides services at a primary 
139.30 	location with satellite facilities, the satellite facilities must be licensed with the primary 
139.31 	location and must be subject to an additional $500 annual nonrefundable license fee per 
139.32 	satellite facility.
140.1 	(j) A program licensed to provide behavioral health treatment services licensed under 
140.2 	section 245I.22, 245I.24, 245I.30, or 245I.31 shall pay an annual nonrefundable license fee 
140.3 	of $3,000 for each license.
140.4 	(k) Certified community behavioral health clinics licensed under section 245I.17 shall 
140.5 	pay an annual nonrefundable license fee of $7,800.

140.6 	Sec. 6. Minnesota Statutes 2024, section 245A.10, is amended by adding a subdivision to 
140.7 	read:
140.8 		Subd. 4a.Fees for satellite locations. (a) If a program subject to annual fees under 
140.9 	subdivision 4, paragraph (b), provides services at a primary location with satellite facilities, 
140.10 	the satellite facilities are licensed with the primary location and are subject to an additional 
140.11 	$500 annual nonrefundable license fee per satellite facility.
140.12 	(b) If a program subject to annual fees under subdivision 4, paragraph (j), provides 
140.13 	services at a primary location with satellite sites or facilities, the satellite locations must be 
140.14 	licensed with the primary location and are subject to an additional annual nonrefundable 
140.15 	fee according to the following schedule:
140.16 	(1) one to five satellite locations: $1,500;
140.17 	(2) six to 19 satellite locations: $3,500; or
140.18 	(3) 20 or more satellite locations: $5,000.

140.19 	Sec. 7. Minnesota Statutes 2024, section 245A.65, subdivision 1a, is amended to read:
140.20 		Subd. 1a.Determination of vulnerable adult status. (a) A license holder that provides 
140.21 	services to adults who are excluded from the definition of vulnerable adult under section 
140.22 	626.5572, subdivision 21, paragraph (a), clause (2), must determine whether the person is 
140.23 	a vulnerable adult under section 626.5572, subdivision 21, paragraph (a), clause (4). This 
140.24 	determination must be made within 24 hours of:
140.25 	(1) admission to the licensed program; and
140.26 	(2) any incident that:
140.27 	(i) was reported under section 626.557; or
140.28 	(ii) would have been required to be reported under section 626.557, if one or more of 
140.29 	the adults involved in the incident had been vulnerable adults.
141.1 	(b) Upon determining that a person receiving services is a vulnerable adult under section 
141.2 	626.5572, subdivision 21, paragraph (a), clause (4), all requirements relative to vulnerable 
141.3 	adults under this chapter and section 626.557 must be met by the license holder.
141.4 	(c) Notwithstanding paragraph (a), clause (1), a license holder providing mobile crisis 
141.5 	services must make the required determination within 24 hours of first providing crisis 
141.6 	stabilization services to an adult under section 245I.24, subdivision 9.

141.7 	Sec. 8. Minnesota Statutes 2024, section 245C.03, subdivision 1, is amended to read:
141.8 		Subdivision 1. Programs licensed by the commissioner. (a) The commissioner shall 
141.9 	conduct a background study on:
141.10 	(1) the person or persons applying for a license;
141.11 	(2) an individual age 13 and over living in the household where the licensed program 
141.12 	will be provided who is not receiving licensed services from the program;
141.13 	(3) current or prospective employees of the applicant or license holder who will have 
141.14 	direct contact with persons served by the facility, agency, or program;
141.15 	(4) volunteers or student volunteers who will have direct contact with persons served 
141.16 	by the program to provide program services if the contact is not under the continuous, direct 
141.17 	supervision by an individual listed in clause (1) or (3);
141.18 	(5) an individual age ten to 12 living in the household where the licensed services will 
141.19 	be provided when the commissioner has reasonable cause as defined in section 245C.02, 
141.20 	subdivision 15;
141.21 	(6) an individual who, without providing direct contact services at a licensed program, 
141.22 	may have unsupervised access to children or vulnerable adults receiving services from a 
141.23 	program, when the commissioner has reasonable cause as defined in section 245C.02, 
141.24 	subdivision 15; and
141.25 	(7) all controlling individuals as defined in section 245A.02, subdivision 5a;
141.26 	(8) notwithstanding clause (3), for children's residential facilities and foster residence 
141.27 	settings, any adult working in the facility, whether or not the individual will have direct 
141.28 	contact with persons served by the facility.
141.29 	(b) For child foster care when the license holder resides in the home where foster care 
141.30 	services are provided, a short-term substitute caregiver providing direct contact services for 
141.31 	a child for less than 72 hours of continuous care is not required to receive a background 
141.32 	study under this chapter.
142.1 	(c) This subdivision applies to the following programs that must be licensed under 
142.2 	chapter 245A:
142.3 	(1) adult foster care;
142.4 	(2) children's residential facilities;
142.5 	(3) licensed home and community-based services under chapter 245D;
142.6 	(4) residential mental health programs for adults;
142.7 	(5) substance use disorder treatment programs under chapter 245G;
142.8 	(6) withdrawal management programs under chapter 245F;
142.9 	(7) adult day care centers;
142.10 	(8) family adult day services;
142.11 	(9) detoxification programs;
142.12 	(10) community residential settings;
142.13 	(11) intensive residential treatment services and residential crisis stabilization under 
142.14 	chapter 245I; and
142.15 	(12) treatment programs for persons with sexual psychopathic personality or sexually 
142.16 	dangerous persons, licensed under chapter 245A and according to Minnesota Rules, parts 
142.17 	9515.3000 to 9515.3110.;
142.18 	(13) adult rehabilitative mental health services under chapter 245I;
142.19 	(14) certified community behavioral health clinic services under chapter 245I;
142.20 	(15) children's therapeutic services and supports under chapter 245I; and
142.21 	(16) crisis response services under chapter 245I.

142.22 	Sec. 9. Minnesota Statutes 2025 Supplement, section 245C.13, subdivision 2, is amended 
142.23 	to read:
142.24 		Subd. 2.Activities pending completion of background study. The subject of a 
142.25 	background study may not perform any activity requiring a background study under 
142.26 	paragraph (c) until the commissioner has issued one of the notices under paragraph (a).
142.27 	(a) Notices from the commissioner required prior to activity under paragraph (c) include:
142.28 	(1) a notice of the study results under section 245C.17 stating that:
142.29 	(i) the individual is not disqualified; or
143.1 	(ii) more time is needed to complete the study but the individual is not required to be 
143.2 	removed from direct contact or access to people receiving services prior to completion of 
143.3 	the study as provided under section 245C.17, subdivision 1, paragraph (b) or (c). The notice 
143.4 	that more time is needed to complete the study must also indicate whether the individual is 
143.5 	required to be under continuous direct supervision prior to completion of the background 
143.6 	study. When more time is necessary to complete a background study of an individual 
143.7 	affiliated with a Title IV-E eligible children's residential facility or foster residence setting, 
143.8 	the individual may not work in the facility or setting regardless of whether or not the 
143.9 	individual is supervised;
143.10 	(2) a notice that a disqualification has been set aside under section 245C.23; or
143.11 	(3) a notice that a variance has been granted related to the individual under section 
143.12 	245C.30.
143.13 	(b) For a background study affiliated with a licensed child care center or certified 
143.14 	license-exempt child care center, the notice sent under paragraph (a), clause (1), item (ii), 
143.15 	must not be issued until the commissioner receives a qualifying result for the individual for 
143.16 	the fingerprint-based national criminal history record check or the fingerprint-based criminal 
143.17 	history information from the Bureau of Criminal Apprehension. The notice must require 
143.18 	the individual to be under continuous direct supervision prior to completion of the remainder 
143.19 	of the background study except as permitted in subdivision 3.
143.20 	(c) Activities prohibited prior to receipt of notice under paragraph (a) include:
143.21 	(1) being issued a license;
143.22 	(2) living in the household where the licensed program will be provided;
143.23 	(3) providing direct contact services to persons served by a program unless the subject 
143.24 	is under continuous direct supervision;
143.25 	(4) having access to persons receiving services if the background study was completed 
143.26 	under section 144.057, subdivision 1, or 245C.03, subdivision 1, paragraph (a), clause (2), 
143.27 	(5), or (6), unless the subject is under continuous direct supervision;
143.28 	(5) for licensed child care centers and certified license-exempt child care centers, 
143.29 	providing direct contact services to persons served by the program;
143.30 	(6) for children's residential facilities or foster residence settings, working in the facility 
143.31 	or setting;
144.1 	(7) for background studies affiliated with a personal care provider organization, except 
144.2 	as provided in section 245C.03, subdivision 3b, or with an early intensive developmental 
144.3 	and behavioral intervention provider or adult rehabilitative mental health services provider, 
144.4 	before a personal care assistant an individual provides services, the personal care assistance 
144.5 	provider agency entity must initiate a background study of the personal care assistant
144.6 	individual under this chapter and the personal care assistance provider agency entity must 
144.7 	have received a notice from the commissioner that the personal care assistant individual is:
144.8 	(i) not disqualified under section 245C.14; or
144.9 	(ii) disqualified, but the personal care assistant has received a set aside of the 
144.10 	disqualification under section 245C.22; or
144.11 	(8) for background studies affiliated with an early intensive developmental and behavioral 
144.12 	intervention provider, before an individual provides services, the early intensive 
144.13 	developmental and behavioral intervention provider must initiate a background study for 
144.14 	the individual under this chapter and the early intensive developmental and behavioral 
144.15 	intervention provider must have received a notice from the commissioner that the individual 
144.16 	is:
144.17 	(i) not disqualified under section 245C.14; or
144.18 	(ii) disqualified, but the individual has received a set-aside of the disqualification under 
144.19 	section 245C.22.

144.20 	Sec. 10. Minnesota Statutes 2025 Supplement, section 245C.16, subdivision 1, is amended 
144.21 	to read:
144.22 		Subdivision 1.Determining immediate risk of harm. (a) If the commissioner determines 
144.23 	that the individual studied has a disqualifying characteristic, the commissioner shall review 
144.24 	the information immediately available and make a determination as to the subject's immediate 
144.25 	risk of harm to persons served by the program where the individual studied will have direct 
144.26 	contact with, or access to, people receiving services.
144.27 	(b) The commissioner shall consider all relevant information available, including the 
144.28 	following factors in determining the immediate risk of harm:
144.29 	(1) the recency of the disqualifying characteristic;
144.30 	(2) the recency of discharge from probation for the crimes;
144.31 	(3) the number of disqualifying characteristics;
144.32 	(4) the intrusiveness or violence of the disqualifying characteristic;
145.1 	(5) the vulnerability of the victim involved in the disqualifying characteristic;
145.2 	(6) the similarity of the victim to the persons served by the program where the individual 
145.3 	studied will have direct contact;
145.4 	(7) whether the individual has a disqualification from a previous background study that 
145.5 	has not been set aside;
145.6 	(8) if the individual has a disqualification which may not be set aside because it is a 
145.7 	permanent bar under section 245C.24, subdivision 1, or the individual is a child care 
145.8 	background study subject who has a felony-level conviction for a drug-related offense in 
145.9 	the last five years, the commissioner may order the immediate removal of the individual 
145.10 	from any position allowing direct contact with, or access to, persons receiving services from 
145.11 	the program and from working in a children's residential facility or foster residence setting; 
145.12 	and
145.13 	(9) if the individual has a disqualification which may not be set aside because it is a 
145.14 	permanent bar under section 245C.24, subdivision 2, or the individual is a child care 
145.15 	background study subject who has a felony-level conviction for a drug-related offense during 
145.16 	the last five years, the commissioner may order the immediate removal of the individual 
145.17 	from any position allowing direct contact with or access to persons receiving services from 
145.18 	the center and from working in a licensed child care center or certified license-exempt child 
145.19 	care center.
145.20 	(c) This section does not apply when the subject of a background study is regulated by 
145.21 	a health-related licensing board as defined in chapter 214, and the subject is determined to 
145.22 	be responsible for substantiated maltreatment under section 626.557 or chapter 260E.
145.23 	(d) This section does not apply to a background study related to an initial application 
145.24 	for a child foster family setting license.
145.25 	(e) Except for paragraph (f), this section does not apply to a background study that is 
145.26 	also subject to the requirements under section 256B.0659, subdivisions 11 and 13, for a 
145.27 	personal care assistant or a qualified professional as defined in section 256B.0659, 
145.28 	subdivision 1, or to a background study for an individual providing early intensive 
145.29 	developmental and behavioral intervention services under section 256B.0949 245C.13, 
145.30 	subdivision 2, paragraph (c), clause (7).
145.31 	(f) If the commissioner has reason to believe, based on arrest information or an active 
145.32 	maltreatment investigation, that an individual poses an imminent risk of harm to persons 
145.33 	receiving services, the commissioner may order that the person be continuously supervised 
146.1 	or immediately removed pending the conclusion of the maltreatment investigation or criminal 
146.2 	proceedings.

146.3 	Sec. 11. Minnesota Statutes 2024, section 245G.03, subdivision 1, is amended to read:
146.4 		Subdivision 1.License requirements. (a) An applicant for a license to provide substance 
146.5 	use disorder treatment must comply with the general requirements in section 626.557; 
146.6 	chapters 245A, 245C, and 260E; and Minnesota Rules, chapter 9544.
146.7 	(b) The commissioner may grant variances to the requirements in this chapter that do 
146.8 	not affect the client's health or safety if the conditions in section 245A.04, subdivision 9, 
146.9 	are met.
146.10 	(c) If a program is licensed according to this chapter and is part of a certified community 
146.11 	behavioral health clinic under section 245.735 245I.17, the license holder must comply with 
146.12 	the requirements in section 245.735 245I.17, subdivisions 4b to 4e 12 and 13, as part of the 
146.13 	licensing requirements under this chapter.

146.14 	Sec. 12. Minnesota Statutes 2024, section 245I.011, subdivision 3, is amended to read:
146.15 		Subd. 3.Certification required. (a) An individual, organization, or government entity 
146.16 	that is exempt from licensure under section 245A.03, subdivision 2, paragraph (a), clause 
146.17 	(12) (15), and chooses to be identified as a certified mental health clinic must:
146.18 	(1) be a mental health clinic that is certified under section 245I.20;
146.19 	(2) comply with all of the responsibilities assigned to a license holder by this chapter 
146.20 	except subdivision 1; and
146.21 	(3) comply with all of the responsibilities assigned to a certification holder by chapter 
146.22 	245A.
146.23 	(b) An individual, organization, or government entity described by this subdivision must 
146.24 	obtain a criminal background study for each staff person or volunteer who provides direct 
146.25 	contact services to clients.
146.26 	(c) If a clinic is certified according to this chapter and is part of a certified community 
146.27 	behavioral health clinic under section 245.735, the license holder must comply with the 
146.28 	requirements in section 245.735, subdivisions 4b to 4e, as part of the licensing requirements 
146.29 	under this chapter.

146.30 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
146.31 	the amendment striking paragraph (c) is effective January 1, 2028.

147.1 	Sec. 13. Minnesota Statutes 2024, section 245I.011, subdivision 5, is amended to read:
147.2 		Subd. 5.Programs certified under chapter 256B. (a) An individual, organization, or 
147.3 	government entity certified under the following sections must comply with all of the 
147.4 	responsibilities assigned to a license holder under this chapter except subdivision 1:
147.5 	(1) an assertive community treatment provider under section 256B.0622, subdivision 
147.6 	3a;
147.7 	(2) an adult rehabilitative mental health services provider under section 256B.0623;
147.8 	(3) a mobile crisis team under section 256B.0624;
147.9 	(4) a children's therapeutic services and supports provider under section 256B.0943;
147.10 	(5) (2) a children's intensive behavioral health services provider under section 256B.0946; 
147.11 	and
147.12 	(6) (3) an intensive nonresidential rehabilitative mental health services provider under 
147.13 	section 256B.0947.
147.14 	(b) An individual, organization, or government entity certified under the sections listed 
147.15 	in paragraph (a), clauses (1) to (6), must obtain a criminal background study for each staff 
147.16 	person and volunteer providing direct contact services to a client.

147.17 	EFFECTIVE DATE. This section is effective January 1, 2028.

147.18 	Sec. 14. Minnesota Statutes 2024, section 245I.011, is amended by adding a subdivision 
147.19 	to read:
147.20 		Subd. 6.License required for nonresidential programs. (a) Beginning January 1, 
147.21 	2028, an individual, organization, or government entity must have a license under this 
147.22 	chapter to provide the following services:
147.23 	(1) adult rehabilitative mental health services, as defined in section 256B.0623;
147.24 	(2) mobile crisis services, as defined in section 256B.0624;
147.25 	(3) children's therapeutic services and supports, as defined in section 256B.0943; or
147.26 	(4) certified community behavioral health clinic services, as defined in sections 245I.17 
147.27 	and 256B.0625, subdivision 5m.
147.28 	(b) An individual, organization, or government entity certified as any of the following 
147.29 	must remain certified according to subdivision 5 until the commissioner issues a license, 
148.1 	the commissioner denies the license application, or the certification expires according to 
148.2 	chapter 245A:
148.3 	(1) an adult rehabilitative mental health services provider under section 256B.0623;
148.4 	(2) a mobile crisis team under section 256B.0624;
148.5 	(3) a children's therapeutic services and supports provider under section 256B.0943; or
148.6 	(4) a certified community behavioral health clinic under section 245.735.

148.7 	Sec. 15. Minnesota Statutes 2024, section 245I.02, is amended by adding a subdivision 
148.8 	to read:
148.9 		Subd. 1a.Alcohol and drug counselor "Alcohol and drug counselor" means an individual 
148.10 	qualified under section 245G.11, subdivision 5.

148.11 	Sec. 16. Minnesota Statutes 2024, section 245I.02, is amended by adding a subdivision 
148.12 	to read:
148.13 		Subd. 10a.Comprehensive evaluation. "Comprehensive evaluation" means a 
148.14 	person-centered, family-centered, and trauma-informed evaluation conducted according to 
148.15 	section 245I.17, subdivision 12.

148.16 	Sec. 17. Minnesota Statutes 2024, section 245I.02, is amended by adding a subdivision 
148.17 	to read:
148.18 		Subd. 18a.Initial evaluation. "Initial evaluation" means the assessment and preliminary 
148.19 	diagnosis necessary to begin client services, conducted according to section 245I.17.

148.20 	Sec. 18. Minnesota Statutes 2024, section 245I.02, is amended by adding a subdivision 
148.21 	to read:
148.22 		Subd. 31a.Psychotherapy. "Psychotherapy" has the meaning given in section 256B.0671, 
148.23 	subdivision 11.

148.24 	Sec. 19. Minnesota Statutes 2024, section 245I.02, subdivision 33, is amended to read:
148.25 		Subd. 33.Rehabilitative mental health services. "Rehabilitative mental health services" 
148.26 	means mental health services provided to an adult a client that enable the client to develop 
148.27 	and achieve psychiatric stability, social competencies, personal and emotional adjustment, 
148.28 	independent living skills, family roles, and community skills when symptoms of mental 
148.29 	illness has impaired any of the client's abilities in these areas. Rehabilitative mental health 
149.1 	services include interventions that allow a client to self-monitor, compensate for, counteract, 
149.2 	or replace psychosocial skills deficits or maladaptive skills acquired over the course of a 
149.3 	mental illness. For a child client, rehabilitative mental health services include interventions 
149.4 	to restore a child or adolescent to an age-appropriate developmental trajectory that has been 
149.5 	disrupted by a mental illness.

149.6 	Sec. 20. Minnesota Statutes 2024, section 245I.02, subdivision 39, is amended to read:
149.7 		Subd. 39.Treatment plan. "Treatment plan" means services that a license holder 
149.8 	formulates to respond to a client's needs and goals. A treatment plan includes individual 
149.9 	treatment plans under section 245I.10, subdivisions 7 and 8; initial treatment plans under 
149.10 	section 245I.23, subdivision 7; and crisis treatment plans under sections 245I.23, subdivision 
149.11 	8, and 256B.0624, subdivision 11. For a license holder under section 245I.17, a treatment 
149.12 	plan is the integrated treatment plan developed according to section 245I.17, subdivision 
149.13 	13.

149.14 	Sec. 21. Minnesota Statutes 2024, section 245I.03, subdivision 4, is amended to read:
149.15 		Subd. 4.Behavioral emergencies. (a) A license holder must have procedures that each 
149.16 	staff person follows when responding to a client who exhibits behavior that threatens the 
149.17 	immediate safety of the client or others. A license holder's behavioral emergency procedures 
149.18 	must incorporate person-centered planning and trauma-informed care.
149.19 	(b) A license holder's behavioral emergency procedures must include:
149.20 	(1) a plan designed to prevent the client from inflicting self-harm and harming others;
149.21 	(2) contact information for emergency resources that a staff person must use when the 
149.22 	license holder's behavioral emergency procedures are unsuccessful in controlling a client's 
149.23 	behavior;
149.24 	(3) the types of behavioral emergency procedures that a staff person may use;
149.25 	(4) the specific circumstances under which the program may use behavioral emergency 
149.26 	procedures; and
149.27 	(5) the staff persons whom the license holder authorizes to implement behavioral 
149.28 	emergency procedures.; and
149.29 	(6) the contact information for the local crisis team.
149.30 	(c) The license holder's behavioral emergency procedures must not include secluding 
149.31 	or restraining a client except as allowed under section 245.8261.
150.1 	(d) Staff persons must not use behavioral emergency procedures to enforce program 
150.2 	rules or for the convenience of staff persons. Behavioral emergency procedures must not 
150.3 	be part of any client's treatment plan. A staff person may not use behavioral emergency 
150.4 	procedures except in response to a client's current behavior that threatens the immediate 
150.5 	safety of the client or others.

150.6 	Sec. 22. Minnesota Statutes 2024, section 245I.03, is amended by adding a subdivision 
150.7 	to read:
150.8 		Subd. 11.Quality assurance and improvement plan. (a) At a minimum, a license 
150.9 	holder must develop a written quality assurance and improvement plan that includes plans 
150.10 	for:
150.11 	(1) encouraging ongoing consultation among members of the treatment team;
150.12 	(2) obtaining and evaluating feedback about services from clients, family and other 
150.13 	natural supports, referral sources, and staff persons;
150.14 	(3) measuring and evaluating client outcomes;
150.15 	(4) reviewing client suicide deaths and suicide attempts;
150.16 	(5) examining the quality of clinical service delivery to clients; and
150.17 	(6) self-monitoring of compliance with this chapter.
150.18 	(b) At least annually, a license holder must review, evaluate, and update the quality 
150.19 	assurance and improvement plan. The review must:
150.20 	(1) include documentation of the actions that the certification holder will take as a result 
150.21 	of information obtained from monitoring activities in the plan; and
150.22 	(2) establish goals for improved service delivery to clients for the next year.

150.23 	Sec. 23. Minnesota Statutes 2025 Supplement, section 245I.04, subdivision 5, is amended 
150.24 	to read:
150.25 		Subd. 5.Behavioral health practitioner scope of practice. (a) A behavioral health 
150.26 	practitioner under the treatment supervision of a mental health professional or certified 
150.27 	rehabilitation specialist may provide an adult client with client education, rehabilitative 
150.28 	mental health services, functional assessments, level of care assessments, crisis planning, 
150.29 	and treatment plans. A behavioral health practitioner under the treatment supervision of a 
150.30 	mental health professional may provide skill-building services to a child client, crisis 
150.31 	planning, and complete treatment plans for a child client.
151.1 	(b) A behavioral health practitioner must not provide treatment supervision to other staff 
151.2 	persons. A behavioral health practitioner may provide direction to mental health rehabilitation 
151.3 	workers and mental health behavioral aides.
151.4 	(c) A behavioral health practitioner who provides services to clients according to section 
151.5 	256B.0624 may perform crisis assessments and interventions for a client.

151.6 	Sec. 24. Minnesota Statutes 2025 Supplement, section 245I.04, subdivision 17, is amended 
151.7 	to read:
151.8 		Subd. 17.Mental health behavioral aide scope of practice. While under the treatment 
151.9 	supervision of a mental health professional, a mental health behavioral aide may practice 
151.10 	psychosocial skills with provide skill-building services to a child client according to the 
151.11 	child's treatment plan and individual behavior plan that a mental health professional, clinical 
151.12 	trainee, or behavioral health practitioner has previously taught to the child.

151.13 	Sec. 25. Minnesota Statutes 2024, section 245I.06, subdivision 1, is amended to read:
151.14 		Subdivision 1.Generally. (a) A license holder must ensure that a mental health 
151.15 	professional or certified rehabilitation specialist provides treatment supervision to each staff 
151.16 	person who provides services to a client and who is not a mental health professional or 
151.17 	certified rehabilitation specialist. When providing treatment supervision, a treatment 
151.18 	supervisor must follow a staff person's written treatment supervision plan.
151.19 	(b) Treatment supervision must focus on each client's treatment needs and the ability of 
151.20 	the staff person under treatment supervision to provide services to each client, including 
151.21 	the following topics related to the staff person's current caseload:
151.22 	(1) a review and evaluation of the interventions that the staff person delivers to each 
151.23 	client;
151.24 	(2) instruction on alternative strategies if a client is not achieving treatment goals;
151.25 	(3) a review and evaluation of each client's assessments, treatment plans, and progress 
151.26 	notes for accuracy and appropriateness;
151.27 	(4) instruction on the cultural norms or values of the clients and communities that the 
151.28 	license holder serves and the impact that a client's culture has on providing treatment;
151.29 	(5) evaluation of and feedback regarding a direct service staff person's areas of 
151.30 	competency; and
151.31 	(6) coaching, teaching, and practicing skills with a staff person.; and
152.1 	(7) modeling service practices that respect the client, include the client in planning and 
152.2 	implementation of the individual treatment plan, recognize the client's strengths, and 
152.3 	coordinate with other involved parties and providers.
152.4 	(c) A treatment supervisor must provide treatment supervision to a staff person using 
152.5 	methods that allow for immediate feedback, including in-person, telephone, and interactive 
152.6 	video supervision.
152.7 	(d) A treatment supervisor's responsibility for a staff person receiving treatment 
152.8 	supervision is limited to the services provided by the associated license holder. If a staff 
152.9 	person receiving treatment supervision is employed by multiple license holders, each license 
152.10 	holder is responsible for providing treatment supervision related to the treatment of the 
152.11 	license holder's clients.

152.12 	Sec. 26. Minnesota Statutes 2024, section 245I.06, subdivision 2, is amended to read:
152.13 		Subd. 2.Treatment supervision planning. (a) A treatment supervisor and the staff 
152.14 	person supervised by the treatment supervisor must develop a written treatment supervision 
152.15 	plan. The license holder must ensure that a new staff person's treatment supervision plan is 
152.16 	completed, approved by the staff person, and implemented by a treatment supervisor and 
152.17 	the new staff person within 30 days of the new staff person's first day of employment. The 
152.18 	license holder must review and update each staff person's treatment supervision plan annually.
152.19 	(b) Each staff person's treatment supervision plan must include:
152.20 	(1) the name and qualifications of the staff person receiving treatment supervision;
152.21 	(2) the names and licensures of the treatment supervisors who are supervising the staff 
152.22 	person;
152.23 	(3) how frequently the treatment supervisors must provide treatment supervision to the 
152.24 	staff person; and
152.25 	(4) the staff person's authorized scope of practice, including a description of the client 
152.26 	population ages that the staff person serves, and a description of the treatment methods and 
152.27 	modalities that the staff person may use to provide services to clients.

152.28 	Sec. 27. Minnesota Statutes 2024, section 245I.07, is amended to read:
152.29 	245I.07 PERSONNEL FILES.
152.30 	(a) For each staff person, a license holder must maintain a personnel file that includes:
153.1 	(1) verification of the staff person's qualifications required for the position including 
153.2 	training, education, practicum or internship agreement, licensure, and any other required 
153.3 	qualifications;
153.4 	(2) documentation related to the staff person's background study;
153.5 	(3) the hiring date of the staff person;
153.6 	(4) a description of the staff person's job responsibilities with the license holder;
153.7 	(5) the date that the staff person's specific duties and responsibilities became effective, 
153.8 	including the date that the staff person began having direct contact with clients;
153.9 	(6) documentation of the staff person's training as required by section 245I.05, subdivision 
153.10 	2;
153.11 	(7) a verification copy of license renewals that the staff person completed during the 
153.12 	staff person's employment;
153.13 	(8) annual job performance evaluations; and
153.14 	(9) if applicable, the staff person's alleged and substantiated violations of the license 
153.15 	holder's policies under section 245I.03, subdivision 8, clauses (3) to (7), and the license 
153.16 	holder's response.
153.17 	(b) The license holder must ensure that all personnel files are readily accessible for the 
153.18 	commissioner's review. The license holder is not required to keep personnel files in a single 
153.19 	location.
153.20 	(c) For a license holder under section 245I.17, a personnel file for staff who provide 
153.21 	substance use disorder treatment services must include records of training required under 
153.22 	section 245G.13, subdivision 2.

153.23 	Sec. 28. Minnesota Statutes 2024, section 245I.10, is amended by adding a subdivision 
153.24 	to read:
153.25 		Subd. 2a.Evaluation, treatment authorization, and planning in a certified community 
153.26 	behavioral health clinic. Notwithstanding subdivisions 2 and 7, a license holder under 
153.27 	section 245I.17 must meet the requirements for assessments under section 245I.17, 
153.28 	subdivisions 11 and 12, and for treatment planning under section 245I.17, subdivision 13. 
153.29 	Certified community behavioral health clinic service planning and authorization must comply 
153.30 	with the standards in section 245I.17.

154.1 	Sec. 29. Minnesota Statutes 2024, section 245I.10, subdivision 6, is amended to read:
154.2 		Subd. 6.Standard diagnostic assessment; required elements. (a) Only a mental health 
154.3 	professional or a clinical trainee may complete a standard diagnostic assessment of a client. 
154.4 	A standard diagnostic assessment of a client must include a face-to-face interview with a 
154.5 	client and a written evaluation of the client. The assessor must complete a client's standard 
154.6 	diagnostic assessment within the client's cultural context. An alcohol and drug counselor 
154.7 	may gather and document the information in paragraphs (b) and (c) when completing a 
154.8 	comprehensive assessment according to section 245G.05.
154.9 	(b) When completing a standard diagnostic assessment of a client, the assessor must 
154.10 	gather and document information about the client's current life situation, including the 
154.11 	following information:
154.12 	(1) the client's age;
154.13 	(2) the client's current living situation, including the client's housing status and household 
154.14 	members;
154.15 	(3) the status of the client's basic needs;
154.16 	(4) the client's education level and employment status;
154.17 	(5) the client's current medications;
154.18 	(6) any immediate risks to the client's health and safety, including withdrawal symptoms, 
154.19 	medical conditions, and behavioral and emotional symptoms;
154.20 	(7) the client's perceptions of the client's condition;
154.21 	(8) the client's description of the client's symptoms, including the reason for the client's 
154.22 	referral;
154.23 	(9) the client's history of mental health and substance use disorder treatment;
154.24 	(10) cultural influences on the client; and
154.25 	(11) substance use history, if applicable, including:
154.26 	(i) amounts and types of substances, frequency and duration, route of administration, 
154.27 	periods of abstinence, and circumstances of relapse; and
154.28 	(ii) the impact to functioning when under the influence of substances, including legal 
154.29 	interventions.
154.30 	(c) If the assessor cannot obtain the information that this paragraph requires without 
154.31 	retraumatizing the client or harming the client's willingness to engage in treatment, the 
155.1 	assessor must identify which topics will require further assessment during the course of the 
155.2 	client's treatment. The assessor must gather and document information related to the following 
155.3 	topics:
155.4 	(1) the client's relationship with the client's family and other significant personal 
155.5 	relationships, including the client's evaluation of the quality of each relationship;
155.6 	(2) the client's strengths and resources, including the extent and quality of the client's 
155.7 	social networks;
155.8 	(3) important developmental incidents in the client's life;
155.9 	(4) maltreatment, trauma, potential brain injuries, and abuse that the client has suffered;
155.10 	(5) the client's history of or exposure to alcohol and drug usage and treatment; and
155.11 	(6) the client's health history and the client's family health history, including the client's 
155.12 	physical, chemical, and mental health history.
155.13 	(d) When completing a standard diagnostic assessment of a client, an assessor must use 
155.14 	a recognized diagnostic framework.
155.15 	(1) When completing a standard diagnostic assessment of a client who is five years of 
155.16 	age or younger, the assessor must use the current edition of the DC: 0-5 Diagnostic 
155.17 	Classification of Mental Health and Development Disorders of Infancy and Early Childhood 
155.18 	published by Zero to Three.
155.19 	(2) When completing a standard diagnostic assessment of a client who is six years of 
155.20 	age or older, the assessor must use the current edition of the Diagnostic and Statistical 
155.21 	Manual of Mental Disorders published by the American Psychiatric Association.
155.22 	(3) When completing a standard diagnostic assessment of a client who is 12 to 17 years 
155.23 	of age, an assessor must use either the CRAFFT Questionnaire or the criteria in the most 
155.24 	recent edition of the Diagnostic and Statistical Manual of Mental Disorders published by 
155.25 	the American Psychiatric Association to screen and assess the client for a substance use 
155.26 	disorder.
155.27 	(3) (4) When completing a standard diagnostic assessment of a client who is 18 years 
155.28 	of age or older, an assessor must use either (i) the CAGE-AID Questionnaire or (ii) the 
155.29 	criteria in the most recent edition of the Diagnostic and Statistical Manual of Mental 
155.30 	Disorders published by the American Psychiatric Association to screen and assess the client 
155.31 	for a substance use disorder.
156.1 	(e) When completing a standard diagnostic assessment of a client, the assessor must 
156.2 	include and document the following components of the assessment:
156.3 	(1) the client's mental status examination;
156.4 	(2) the client's baseline measurements; symptoms; behavior; skills; abilities; resources; 
156.5 	vulnerabilities; safety needs, including client information that supports the assessor's findings 
156.6 	after applying a recognized diagnostic framework from paragraph (d); and any differential 
156.7 	diagnosis of the client; and
156.8 	(3) an explanation of: (i) how the assessor diagnosed the client using the information 
156.9 	from the client's interview, assessment, psychological testing, and collateral information 
156.10 	about the client; (ii) the client's needs; (iii) the client's risk factors; (iv) the client's strengths; 
156.11 	and (v) the client's responsivity factors.
156.12 	(f) When completing a standard diagnostic assessment of a client, the assessor must 
156.13 	consult the client and the client's family about which services that the client and the family 
156.14 	prefer to treat the client. The assessor must make referrals for the client as to services required 
156.15 	by law.
156.16 	(g) Information from other providers and prior assessments may be used to complete 
156.17 	the diagnostic assessment if the source of the information is documented in the diagnostic 
156.18 	assessment.
156.19 	(h) If the client screens positive for a need for substance use disorder treatment services, 
156.20 	the assessor must document what actions will be taken to address the client's co-occurring 
156.21 	conditions.
156.22 	(i) The assessor must determine if the client is eligible for targeted case management 
156.23 	services according to section 245.462, subdivision 20, or 245.4871, subdivision 6, and refer 
156.24 	the client to the county or contracted provider as appropriate.

156.25 	Sec. 30. Minnesota Statutes 2024, section 245I.10, subdivision 8, is amended to read:
156.26 		Subd. 8.Individual treatment plan; required elements. (a) After completing a client's 
156.27 	diagnostic assessment or reviewing a client's diagnostic assessment received from a different 
156.28 	provider and before providing services to the client beyond those permitted under subdivision 
156.29 	7, the license holder must complete the client's individual treatment plan. The license holder 
156.30 	must:
156.31 	(1) base the client's individual treatment plan on the client's diagnostic assessment and 
156.32 	baseline measurements;
157.1 	(2) for a child client, use a child-centered, family-driven, and culturally appropriate 
157.2 	planning process that allows the child's parents and guardians to observe and participate in 
157.3 	the child's individual and family treatment services, assessments, and treatment planning;
157.4 	(3) for an adult client, use a person-centered, culturally appropriate planning process 
157.5 	that allows the client's family and other natural supports to observe and participate in the 
157.6 	client's treatment services, assessments, and treatment planning;
157.7 	(4) identify the client's treatment goals, measureable treatment objectives, a schedule 
157.8 	for accomplishing the client's treatment goals and objectives, a treatment strategy, and the 
157.9 	individuals responsible for providing treatment services and supports to the client. The 
157.10 	license holder must have a treatment strategy to engage the client in treatment if the client:
157.11 	(i) has a history of not engaging in treatment; and
157.12 	(ii) is ordered by a court to participate in treatment services or to take neuroleptic 
157.13 	medications;
157.14 	(5) identify the participants involved in the client's treatment planning. The client must 
157.15 	be a participant in the client's treatment planning. If applicable, the license holder must 
157.16 	document the reasons that the license holder did not involve the client's family, case manager,
157.17 	or other natural supports in the client's treatment planning; and
157.18 	(6) review the client's individual treatment plan every 180 days and update the client's 
157.19 	individual treatment plan with the client's treatment progress, new treatment objectives and 
157.20 	goals or, if the client has not made treatment progress, changes in the license holder's 
157.21 	approach to treatment; and
157.22 	(7) (6) ensure that the client approves of the client's individual treatment plan unless a 
157.23 	court orders the client's treatment plan under chapter 253B.
157.24 	(b) If the client disagrees with the client's treatment plan, the license holder must 
157.25 	document in the client file the reasons why the client does not agree with the treatment plan. 
157.26 	If the license holder cannot obtain the client's approval of the treatment plan, a mental health 
157.27 	professional must make efforts to obtain approval from a person who is authorized to consent 
157.28 	on the client's behalf within 30 days after the client's previous individual treatment plan 
157.29 	expired. A license holder may not deny a client service during this time period solely because 
157.30 	the license holder could not obtain the client's approval of the client's individual treatment 
157.31 	plan. A license holder may continue to bill for the client's otherwise eligible services when 
157.32 	the client re-engages in services.
158.1 	(c) The individual treatment plan must be updated as necessary to reflect the changing 
158.2 	needs of the client. The individual treatment plan must provide assistance with accessing 
158.3 	necessary crisis services when the license holder is aware of the client's need for crisis 
158.4 	services. The license holder must review the client's individual treatment plan every 180 
158.5 	days and update the client's individual treatment plan with the client's treatment progress, 
158.6 	new treatment objectives and goals, or, if the client has not made treatment progress, changes 
158.7 	in the license holder's approach to treatment.

158.8 	Sec. 31. [245I.17] CERTIFIED COMMUNITY BEHAVIORAL HEALTH CLINIC 
158.9 	LICENSURE.
158.10 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms in this 
158.11 	subdivision have the meanings given.
158.12 	(b) "Care coordination" means the activities required to coordinate care across settings 
158.13 	and providers for an individual served to ensure seamless transitions across the full spectrum 
158.14 	of health services. Care coordination includes:
158.15 	(1) outreach and engagement;
158.16 	(2) documenting a plan of care for medical, behavioral health, and social services and 
158.17 	supports in the integrated treatment plan;
158.18 	(3) assisting with obtaining appointments;
158.19 	(4) confirming appointments are kept;
158.20 	(5) developing a crisis plan;
158.21 	(6) tracking medication; and
158.22 	(7) implementing care coordination agreements with external providers. Care coordination 
158.23 	may include psychiatric consultation with primary care practitioners and with mental health 
158.24 	clinical care practitioners.
158.25 	(c) "CCBHC client" means an individual who has participated in a preliminary screening 
158.26 	and risk assessment and who has received at least one of the nine required services from a 
158.27 	CCBHC.
158.28 	(d) "Certified community behavioral health clinic" or "CCBHC" means a provider of 
158.29 	integrated behavioral health services that is licensed under this section and compliant with 
158.30 	federal CCBHC requirements.
159.1 	(e) "Community needs assessment" means an assessment to identify community needs 
159.2 	and determine the community behavioral health clinic's capacity to address the needs of the 
159.3 	population being served.
159.4 	(f) "Designated collaborating organization" means an entity meeting the requirements 
159.5 	of subdivision 5 that has a formal agreement with a CCBHC to furnish CCBHC services.
159.6 	(g) "Federal CCBHC criteria" means the most recently issued Certified Community 
159.7 	Behavioral Health Clinic Certification Criteria published by the Substance Abuse and Mental 
159.8 	Health Services Administration.
159.9 	(h) "Needs assessment" means the community needs assessment described in federal 
159.10 	criteria for CCBHC.
159.11 	(i) "Preliminary screening and risk assessment" means a mandatory screening and risk 
159.12 	assessment that is completed at the time of first contact, whether that contact is in person, 
159.13 	by telephone, or using other remote communication.
159.14 		Subd. 2.Establishment of licensure. (a) The certified community behavioral health 
159.15 	clinic model is an integrated service delivery model that uses evidence-based behavioral 
159.16 	health practices to achieve better outcomes for individuals experiencing behavioral health 
159.17 	concerns while achieving sustainable rates through cost-based reimbursement for providers 
159.18 	and economic efficiencies for payors.
159.19 	(b) Beginning January 1, 2028, a CCBHC must be licensed under this section and chapter 
159.20 	245A.
159.21 	(c) A CCBHC must meet the requirements of this section and federal CCBHC criteria. 
159.22 	The commissioner may require a CCBHC applicant or license holder to submit documentation 
159.23 	of compliance with state licensing requirements and federal CCBHC criteria. When permitted 
159.24 	by the Substance Abuse and Mental Health Services Administration, the commissioner may 
159.25 	select a transition date on which revisions to the federal CCBHC criteria become required 
159.26 	as licensing conditions for CCBHCs.
159.27 		Subd. 3.License extension. (a) The commissioner must extend a compliant license 
159.28 	holder's license under this section for 36 months.
159.29 	(b) The commissioner must complete a licensing review that includes an on-site inspection 
159.30 	within six months before the expiration of the CCBHC's current license.
159.31 	(c) Within 180 days of license expiration, a CCBHC license holder must submit to the 
159.32 	commissioner all documentation required by the commissioner under subdivision 2, 
159.33 	paragraph (c).
160.1 		Subd. 4.Required services and scope of licensure. Within a declared service area, the 
160.2 	CCBHC must be able to offer:
160.3 	(1) mobile crisis services, directly or through a designated collaborating organization 
160.4 	under subdivision 4;
160.5 	(2) outpatient mental health and substance use disorder treatment services under 
160.6 	subdivisions 9 and 10;
160.7 	(3) screening, diagnosis, and risk assessment under subdivision 11;
160.8 	(4) person- and family-centered treatment planning;
160.9 	(5) psychiatric rehabilitation services under subdivision 14;
160.10 	(6) community-based mental health care for veterans under subdivision 15;
160.11 	(7) outpatient primary care screening and monitoring under subdivision 16;
160.12 	(8) peer services under subdivision 17; and
160.13 	(9) targeted case management under subdivision 18.
160.14 		Subd. 5.Designated collaborating organization. (a) If a CCBHC is unable to provide 
160.15 	mobile crisis services, the CCBHC may contract with another entity that is licensed to 
160.16 	provide mobile crisis services under section 245I.24 and that meets the requirements of the 
160.17 	federal CCBHC criteria as a designated collaborating organization.
160.18 	(b) The CCBHC must submit a designated collaborating organization arrangement for 
160.19 	approval to the commissioner as part of the licensing process.
160.20 		Subd. 6.Exemptions to host county approval. Notwithstanding any other law that 
160.21 	requires a county contract or other form of county approval for a service listed in subdivision 
160.22 	4, a CCBHC that meets the requirements of this section may receive the prospective payment 
160.23 	under section 256B.0625, subdivision 5m, for that service without a county contract or 
160.24 	county approval.
160.25 		Subd. 7.Variances. When the standards listed in this section or other applicable standards 
160.26 	conflict or address similar issues in duplicative or incompatible ways, the commissioner 
160.27 	may grant variances to state requirements if the variances do not conflict with federal 
160.28 	requirements for services reimbursed under medical assistance. If standards overlap, the 
160.29 	commissioner may substitute all or a part of a licensure or certification that is substantially 
160.30 	the same as another licensure or certification. The commissioner must consult with 
160.31 	stakeholders before granting variances under this provision. For a CCBHC that is licensed 
160.32 	but not approved for prospective payment under section 256B.0625, subdivision 5m, the 
161.1 	commissioner may grant a variance under this paragraph if the variance does not increase 
161.2 	the state share of costs.
161.3 		Subd. 8.Evidence-based practices. The commissioner must issue a list of required 
161.4 	evidence-based practices to be delivered by CCBHCs and may also provide a list of 
161.5 	recommended evidence-based practices. The commissioner may update the list to reflect 
161.6 	advances in outcomes research and medical services for persons living with mental illnesses 
161.7 	or substance use disorders. When developing the list, the commissioner must consider the 
161.8 	adequacy of evidence to support the efficacy of the practice across cultures and ages, the 
161.9 	workforce available, and the current availability of the practices in the state. At least 30 
161.10 	days before issuing the initial list or issuing any revisions, the commissioner must provide 
161.11 	stakeholders with an opportunity to comment.
161.12 		Subd. 9.Outpatient mental health services. (a) A license holder must provide outpatient 
161.13 	mental health services that comply with the federal CCBHC criteria and applicable state 
161.14 	standards in this chapter, except as provided in this subdivision.
161.15 	(b) Completion of an initial or comprehensive evaluation fulfills the requirements to 
161.16 	perform a diagnostic assessment in accordance with section 245I.10, subdivisions 2 and 6.
161.17 	(c) An integrated treatment plan under this section fulfills the requirements to conduct 
161.18 	treatment planning in accordance with section 245I.10, subdivisions 7 and 8.
161.19 	(d) A license holder under this section is exempt from certification as a mental health 
161.20 	clinic under section 245I.20.
161.21 		Subd. 10.Outpatient substance use disorder treatment. (a) When a license holder 
161.22 	provides substance use disorder treatment services to an individual with a substance use 
161.23 	disorder diagnosis, the license holder must comply with the requirements for substance use 
161.24 	disorder treatment services in chapter 245G, except as provided in this subdivision.
161.25 	(b) Completion of a preliminary screening and risk assessment under this section fulfills 
161.26 	the requirements to complete an initial services plan under section 245G.04, subdivision 1.
161.27 	(c) Completion of a comprehensive evaluation under this section fulfills the requirements 
161.28 	to administer a comprehensive assessment under section 245G.05.
161.29 	(d) An integrated treatment plan under this section that contains a six-dimension analysis 
161.30 	of the client's needs according to the third edition of ASAM criteria, as defined in section 
161.31 	254B.01, subdivision 2a, fulfills the requirements to provide an individual treatment plan 
161.32 	under section 245G.06.
162.1 	(e) A license holder under this section fulfills the requirement to document personnel 
162.2 	files under section 245G.13, subdivision 3, by complying with the requirements of this 
162.3 	chapter.
162.4 	(f) A license holder under this section fulfills the requirement to protect client rights 
162.5 	under section 245G.15 by complying with the requirements of section 245I.12.
162.6 	(g) A license holder under this section fulfills the requirements to respond to behavioral 
162.7 	emergencies under section 245G.16 by complying with the requirements of section 245I.03, 
162.8 	subdivision 4.
162.9 	(h) A license holder under this section is exempt from licensure under chapter 245G.
162.10 		Subd. 11.Initial triage and risk assessment. (a) A license holder must have policies 
162.11 	and procedures on:
162.12 	(1) how staff will implement the requirements of this subdivision;
162.13 	(2) staff positions authorized to complete triage and risk assessments;
162.14 	(3) documenting the results of the risk screenings; and
162.15 	(4) ensuring the client is offered timely services according to the federal CCBHC criteria.
162.16 	(b) A license holder must conduct an initial triage and risk assessment when a new client 
162.17 	requests services or is referred to services. A license holder may conduct an initial triage 
162.18 	and risk assessment in person, by telephone, or through other remote communication. Based 
162.19 	on the acuity of needs as assessed in the initial triage and risk assessment, the client must 
162.20 	be categorized as having emergency, urgent, or routine needs.
162.21 	(c) Based on these categorizations, the license holder must offer services that meet the 
162.22 	relevant timelines under the federal CCBHC criteria.
162.23 	(d) The license holder must provide training that addresses:
162.24 	(1) when a prospective client requires intervention from qualified staff;
162.25 	(2) the use of standardized measures that screen for significant risks;
162.26 	(3) other factors that indicate a client has urgent needs besides the Columbia Suicide 
162.27 	Severity Rating Scale or a self-harm screening; and
162.28 	(4) overdose and substance use disorder risks.
162.29 		Subd. 12.Initial and comprehensive evaluation. (a) A license holder under this section 
162.30 	must provide initial and comprehensive evaluations according to this section and federal 
162.31 	CCBHC criteria.
163.1 	(b) An initial evaluation is necessary to authorize the provision of all medically necessary 
163.2 	CCBHC services until the completion of a comprehensive evaluation. A comprehensive 
163.3 	evaluation is necessary to authorize the provision of all medically necessary CCBHC services 
163.4 	on an ongoing basis. A license holder must ensure that each client's comprehensive evaluation 
163.5 	reflects the needs and assessments for all services provided.
163.6 		Subd. 13.Integrated treatment plan. (a) A license holder under this section must 
163.7 	complete an integrated treatment plan for each client following the client's comprehensive 
163.8 	evaluation no later than 60 calendar days after the date of the first request for services.
163.9 	(b) A license holder must document all required services under subdivision 9 within the 
163.10 	integrated treatment plan based on the client's needs.
163.11 	(c) A license holder must review and update a client's integrated treatment plan as 
163.12 	necessary to reflect the changing needs of the client and progress made in treatment. If the 
163.13 	client has not made treatment progress, updates to the treatment plan must indicate changes 
163.14 	in the license holder's approach to treatment to better meet the needs of the client. A license 
163.15 	holder must review and update the integrated treatment plan at least every 180 days or as 
163.16 	clinically indicated.
163.17 		Subd. 14.Psychiatric rehabilitation services. (a) For children, a license holder under 
163.18 	this section must provide children's therapeutic services and supports according to sections 
163.19 	245I.30 and 245I.31, except that an initial or comprehensive assessment under this section 
163.20 	fulfills the requirement to perform a standard diagnostic assessment.
163.21 	(b) For adults, a license holder under this section must provide adult rehabilitative mental 
163.22 	health services according to section 245I.22, except that:
163.23 	(1) the license holder is exempt from the requirement to perform a level of care 
163.24 	assessment under section 245I.22, subdivision 6, paragraph (b); and
163.25 	(2) an initial or comprehensive assessment under this section fulfills the requirement to 
163.26 	perform a standard diagnostic assessment.
163.27 		Subd. 15.Community-based care for veterans. (a) The license holder must provide 
163.28 	services according to federal requirements for eligibility and coordination with TRICARE 
163.29 	and the United States Department of Veterans Affairs.
163.30 	(b) The license holder must assign and document a principal behavioral health provider 
163.31 	for every veteran receiving services.
163.32 		Subd. 16.Primary care screening and monitoring. To fulfill the requirements for 
163.33 	primary care screening, a license holder under this section must have policies and procedures 
164.1 	detailing the screenings to be performed with specific populations at the clinic. The policies 
164.2 	and procedures must be approved by the medical director.
164.3 		Subd. 17.Peer services. A license holder must be able to provide peer services as 
164.4 	described by federal CCBHC criteria and sections 245G.07, subdivision 2, clause (8), 
164.5 	256B.0615, and 256B.0616.
164.6 		Subd. 18.Targeted case management. (a) A license holder must provide mental health 
164.7 	targeted case management as described by federal CCBHC criteria and section 256B.0625, 
164.8 	subdivision 20.
164.9 	(b) An initial or comprehensive evaluation under this section fulfills any requirement 
164.10 	to perform a standard diagnostic assessment for targeted case management.
164.11 		Subd. 19.Community needs assessment. (a) The community needs assessment must 
164.12 	be a collaborative document that reflects the license holder's or applicant's engagement with 
164.13 	current clients, other social and medical services agencies, community groups, underserved 
164.14 	populations, and government agencies. The applicant or license holder must document an 
164.15 	outreach plan within the community needs assessment to demonstrate how stakeholder 
164.16 	feedback was solicited and reflected in the plan.
164.17 	(b) The applicant or license holder must publicly post a draft community needs assessment 
164.18 	on the organization's website for 30 days and submit a summary of public comments and 
164.19 	recommendations from the comment period to the commissioner.
164.20 	(c) In the draft community needs assessment, the applicant or license holder must declare 
164.21 	a planned geographic service delivery area in which the CCBHC will be capable of providing 
164.22 	all nine required services. An applicant must provide an analysis of how CCBHC status 
164.23 	will lead to a significant improvement in the availability and quality of the services. An 
164.24 	existing license holder must include analysis of which needs from prior needs assessments 
164.25 	have been improved by the operation of the CCBHC. A clinic that has not made and 
164.26 	demonstrated substantial progress in addressing the identified needs must specify what 
164.27 	changes will occur to address the lack of progress.
164.28 	(d) The commissioner must provide feedback and technical assistance if the community 
164.29 	needs assessment must be revised.
164.30 		Subd. 20.Staffing plan. Based on an accepted community needs assessment, the 
164.31 	applicant or license holder must complete a staffing plan. The staffing plan must include 
164.32 	analysis of the extent to which identified staffing levels will be capable of meeting the needs 
164.33 	identified in the community needs assessment.
165.1 		Subd. 21.Data and evaluation. A provider must submit documentation that establishes 
165.2 	the ability of the clinic to complete the required data collection as a CCBHC, as determined 
165.3 	by the commissioner. For an applicant that is an existing provider, the commissioner must 
165.4 	review and evaluate data submitted related to claims, grants, and other reporting to ensure 
165.5 	the data meets reporting requirements.
165.6 		Subd. 22.Cost reporting. A provider must submit a cost report on the forms and in the 
165.7 	manner required in section 256B.0625, subdivision 5m.

165.8 	Sec. 32. [245I.22] ADULT REHABILITATIVE MENTAL HEALTH SERVICES.
165.9 		Subdivision 1.Generally. Beginning January 1, 2028, a provider of adult mental health 
165.10 	rehabilitative services must be licensed under this section and chapter 245A.
165.11 		Subd. 2.Definitions. (a) For the purposes of this section, the terms in this subdivision 
165.12 	have the meanings given.
165.13 	(b) "Adult mental health rehabilitative services" or "ARMHS" has the meaning given 
165.14 	in section 245I.02, subdivision 33.
165.15 	(c) "Basic living skills" means rehabilitative interventions that instruct, assist, and support 
165.16 	the client with:
165.17 	(1) interpersonal communication skills;
165.18 	(2) community resource utilization and integration skills;
165.19 	(3) crisis planning;
165.20 	(4) relapse prevention skills;
165.21 	(5) health care directives;
165.22 	(6) budgeting and shopping skills;
165.23 	(7) healthy lifestyle skills and practices;
165.24 	(8) cooking and nutrition skills;
165.25 	(9) transportation skills;
165.26 	(10) mental illness symptom management skills;
165.27 	(11) household management skills;
165.28 	(12) employment-related skills; and
165.29 	(13) parenting skills.
166.1 	(d) "Community intervention" means a client's community assisting in the client's 
166.2 	rehabilitation, including consultation with relatives, guardians, friends, employers, treatment 
166.3 	providers, and other significant individuals. Community intervention is appropriate when 
166.4 	directed exclusively to the treatment of the client.
166.5 	(e) "Medication education services" means services provided individually or in groups 
166.6 	that focus on educating the client about mental illness and symptoms, the role and effects 
166.7 	of medications in treating symptoms of mental illness, and the side effects of medications. 
166.8 	Medication education services must be coordinated with, but must not duplicate, medication 
166.9 	management services. Medication education services must be provided by physicians, 
166.10 	advanced practice registered nurses, pharmacists, physician assistants, or registered nurses.
166.11 	(f) "Transition to community living services" means services that maintain continuity 
166.12 	of contact between the ARMHS provider and the client and facilitate discharge from a 
166.13 	hospital, residential treatment program, board and lodging facility, or nursing home. 
166.14 	Transition to community living services must not be used to provide other areas of adult 
166.15 	rehabilitative mental health services.
166.16 		Subd. 3.Service components. An ARMHS provider must be capable of providing:
166.17 	(1) basic living skills;
166.18 	(2) medication education services;
166.19 	(3) community intervention; and
166.20 	(4) transition to community living services.
166.21 		Subd. 4.Provider requirements. An ARMHS license holder must be enrolled with 
166.22 	medical assistance and comply with standards in section 256B.0623.
166.23 		Subd. 5.Qualifications. ARMHS must be provided by:
166.24 	(1) a mental health professional qualified under section 245I.04, subdivision 2;
166.25 	(2) a certified rehabilitation specialist qualified under section 245I.04, subdivision 8;
166.26 	(3) a clinical trainee qualified under section 245I.04, subdivision 6;
166.27 	(4) a behavioral health practitioner qualified under section 245I.04, subdivision 4;
166.28 	(5) a mental health certified peer specialist qualified under section 245I.04, subdivision 
166.29 	12; or
166.30 	(6) a mental health rehabilitation worker qualified under section 245I.04, subdivision 
166.31 	14.
167.1 		Subd. 6.Service planning. (a) An ARMHS provider must complete a written functional 
167.2 	assessment according to section 245I.10, subdivision 9, for each client.
167.3 	(b) When an ARMHS provider completes a written functional assessment, the provider 
167.4 	must also complete a level of care assessment, as defined in section 245I.02, subdivision 
167.5 	19, for the client.
167.6 		Subd. 7.Group modality. ARMHS may be provided in group settings if appropriate 
167.7 	to each participating client's needs and treatment plan. A group is defined as two to ten 
167.8 	clients, at least one of whom is concurrently receiving ARMHS. The service and group 
167.9 	must be specified in the client's individual treatment plan.

167.10 	Sec. 33. [245I.24] MOBILE CRISIS RESPONSE SERVICES.
167.11 		Subdivision 1.Generally. (a) Mobile crisis response services provide short-term, 
167.12 	face-to-face mental health care in community settings for adults and children experiencing 
167.13 	crisis to help individuals maintain safety and return to a baseline level of functioning.
167.14 	(b) Beginning January 1, 2028, a provider of mobile crisis response services must be 
167.15 	licensed under this section and chapter 245A.
167.16 		Subd. 2.Definitions.  (a) For the purposes of this section, the terms in this subdivision 
167.17 	have the meanings given.
167.18 	(b) "Crisis assessment" means an immediate face-to-face assessment by a physician, a 
167.19 	mental health professional, or a qualified member of a crisis team, as described in subdivision 
167.20 	5.
167.21 	(c) "Crisis intervention" means face-to-face, short-term intensive mental health services 
167.22 	initiated during a mental health crisis to help an individual cope with immediate stressors, 
167.23 	identify and utilize available resources and strengths, engage in voluntary treatment, and 
167.24 	begin to return to the individual's baseline level of functioning.
167.25 	(d) "Crisis screening" means a screening of a client's potential mental health crisis 
167.26 	situation under subdivision 6.
167.27 	(e) "Crisis stabilization services" means individualized mental health services that are 
167.28 	designed to restore an individual to the individual's baseline level of functioning. Crisis 
167.29 	stabilization services may be provided in the individual's home, the home of a family member 
167.30 	or friend of the individual, another community setting, a short-term supervised licensed 
167.31 	residential program, or an emergency department. Crisis stabilization services include family 
167.32 	psychoeducation.
168.1 	(f) "Crisis team" means the staff of a provider entity who are supervised and prepared 
168.2 	to provide mobile crisis services to a client in a potential mental health crisis situation.
168.3 	(g) "Mental health crisis" is a behavioral, emotional, or psychiatric situation that, without 
168.4 	the provision of crisis response services, would likely result in significantly reducing the 
168.5 	individual's levels of functioning in primary activities of daily living, the individual needing 
168.6 	emergency services under section 62Q.55, or the individual being placed in a more restrictive 
168.7 	setting, including but not limited to inpatient hospitalization.
168.8 	(h) "Mobile crisis services" means screening, assessment, intervention, and 
168.9 	community-based crisis stabilization services that are provided to an individual client. 
168.10 	Mobile crisis services does not include residential crisis stabilization.
168.11 		Subd. 3.Eligibility. (a) An individual is eligible for crisis assessment services when the 
168.12 	person has screened positive for a potential mental health crisis during a crisis screening.
168.13 	(b) An individual is eligible for crisis intervention services and crisis stabilization services 
168.14 	when the individual has been assessed during a crisis assessment to be experiencing a mental 
168.15 	health crisis.
168.16 		Subd. 4.Policies, procedures, and practices specified. (a) In addition to the policies 
168.17 	and procedures required by section 245I.03, the license holder must establish, enforce, and 
168.18 	maintain policies and procedures to:
168.19 	(1) ensure that crisis screenings, crisis assessments, and crisis intervention services are 
168.20 	available 24 hours per day, seven days per week;
168.21 	(2) respond to a call for services in a designated service area or according to a written 
168.22 	agreement with the local mental health authority for an adjacent area;
168.23 	(3) have at least one mental health professional on staff at all times and at least one 
168.24 	additional staff member capable of leading a crisis response in the community; and
168.25 	(4) respond to clients in the community according to the requirements and priorities in 
168.26 	subdivision 6.
168.27 	(b) The license holder must provide the commissioner with information about the number 
168.28 	of requests for service, the number of clients that the provider serves face-to-face, and client 
168.29 	outcomes at least every six months, in a form and manner prescribed by the commissioner.
168.30 	(c) The license holder must:
169.1 	(1) provide support for an individual's family and natural supports by enabling the 
169.2 	individual's family and natural supports to observe and participate in the individual's 
169.3 	treatment, assessments, and planning services;
169.4 	(2) implement culturally specific treatment identified in the crisis treatment plan that is 
169.5 	meaningful and appropriate, as determined by the individual's culture, beliefs, values, and 
169.6 	language;
169.7 	(3) respond to an individual's changing intervention and care needs, as identified by the 
169.8 	individual or a family member; and
169.9 	(4) have the communication tools and procedures to communicate and consult promptly 
169.10 	about crisis assessment and interventions as services are provided.
169.11 	(d) The license holder must coordinate services with:
169.12 	(1) county emergency services under section 245.469, community hospitals, ambulance 
169.13 	services, transportation services, social services, law enforcement, engagement services, 
169.14 	and mental health crisis services through regularly scheduled interagency meetings;
169.15 	(2) other behavioral health service providers, county mental health authorities, or federally 
169.16 	recognized American Indian authorities, and others as necessary, with the consent of the 
169.17 	individual or parent or guardian;
169.18 	(3) detoxification, withdrawal management services, and medical stabilization services 
169.19 	as needed; and
169.20 	(4) the individual's case manager if the individual is receiving case management services.
169.21 		Subd. 5.Crisis assessment and intervention staff qualifications. (a) Crisis assessment 
169.22 	and intervention services must be provided by:
169.23 	(1) a mental health professional qualified under section 245I.04, subdivision 2;
169.24 	(2) a clinical trainee qualified under section 245I.04, subdivision 6;
169.25 	(3) a behavioral health practitioner qualified under section 245I.04, subdivision 4;
169.26 	(4) a mental health certified family peer specialist qualified under section 245I.04, 
169.27 	subdivision 12; or
169.28 	(5) a mental health certified peer specialist qualified under section 245I.04, subdivision 
169.29 	10.
170.1 	(b) When crisis assessment and intervention services are provided to an individual in 
170.2 	the community, a mental health professional, clinical trainee, or mental health practitioner 
170.3 	must lead the response.
170.4 	(c) For providers under this section, the 30 hours of ongoing training required by section 
170.5 	245I.05, subdivision 4, paragraph (b), must be specific to providing crisis services to children 
170.6 	and adults and include training about evidence-based practices identified by the commissioner 
170.7 	of health to reduce the individual's risk of suicide and self-injurious behavior.
170.8 	(d) At least six hours of the ongoing training under paragraph (c) must be specific to 
170.9 	working with families and providing crisis stabilization services to children and include the 
170.10 	following topics:
170.11 	(1) developmental tasks of childhood and adolescence;
170.12 	(2) family relationships;
170.13 	(3) child and youth engagement and motivation, including motivational interviewing;
170.14 	(4) culturally responsive care, including care for lesbian, gay, bisexual, transgender, and 
170.15 	queer youth;
170.16 	(5) positive behavior support;
170.17 	(6) crisis intervention for youth with developmental disabilities;
170.18 	(7) child traumatic stress, trauma-informed care, and trauma-focused cognitive behavioral 
170.19 	therapy; and
170.20 	(8) youth substance use.
170.21 	(e) Individual providers must be experienced in crisis assessment, crisis intervention 
170.22 	techniques, treatment engagement strategies, working with families, and clinical decision 
170.23 	making under emergency conditions and have knowledge of local services and resources.
170.24 		Subd. 6.Crisis screening.  (a) A license holder may use the resources of emergency 
170.25 	services under section 245.469 for crisis screening. The crisis screening must gather 
170.26 	information, determine whether a mental health crisis situation exists, identify parties 
170.27 	involved, and determine an appropriate response.
170.28 	(b) When conducting a crisis screening, a provider must:
170.29 	(1) employ evidence-based practices to reduce the individual's risk of suicide and 
170.30 	self-injurious behavior;
171.1 	(2) work with the individual to establish a plan and time frame for responding to the 
171.2 	individual's mental health crisis, including responding to the individual's immediate need 
171.3 	for support by telephone or text message until the provider can respond to the individual 
171.4 	face-to-face;
171.5 	(3) document significant factors in determining whether the individual is experiencing 
171.6 	a mental health crisis, including prior requests for crisis services, an individual's recent 
171.7 	presentation at an emergency department, known calls to 911 or law enforcement, or 
171.8 	information from third parties with knowledge of an individual's history or current needs;
171.9 	(4) accept calls from interested third parties and consider the additional needs or potential 
171.10 	mental health crises that the third parties may be experiencing;
171.11 	(5) provide psychoeducation, including reducing access to means of suicide, to relevant 
171.12 	third parties including family members or other persons living with the individual; and
171.13 	(6) consider other available services to determine which service intervention would best 
171.14 	address the individual's needs and circumstances.
171.15 	(c) For the purposes of this section, the following situations indicate a positive screen 
171.16 	for a potential mental health crisis:
171.17 	(1) the individual presents at an emergency department or urgent care setting and the 
171.18 	health care team at that location requested crisis services; or
171.19 	(2) a peace officer requested crisis services for an individual who is potentially subject 
171.20 	to transportation under section 253B.051.
171.21 	(d) The provider must prioritize providing a face-to-face crisis assessment of the 
171.22 	individual, unless a provider documents specific evidence to show why the face-to-face 
171.23 	assessment was not possible, including insufficient staffing resources, concerns for staff or 
171.24 	individual safety, or other clinical factors.
171.25 	(e) A provider is not required to have direct contact with the individual to determine 
171.26 	that the individual is experiencing a potential mental health crisis. A mobile crisis provider 
171.27 	may gather relevant information about the individual from a third party to establish the 
171.28 	individual's need for services and potential safety factors.
171.29 		Subd. 7.Crisis assessment.  (a) If an individual screens positive for a potential mental 
171.30 	health crisis, a crisis assessment must be completed. A crisis assessment must evaluate any 
171.31 	immediate needs for which services are needed and, as time permits, the individual's:
171.32 	(1) current life situation;
172.1 	(2) health information, including current medications;
172.2 	(3) sources of stress;
172.3 	(4) mental health problems and symptoms;
172.4 	(5) strengths;
172.5 	(6) cultural considerations;
172.6 	(7) support network;
172.7 	(8) vulnerabilities;
172.8 	(9) current functioning; and
172.9 	(10) preferences, as communicated directly by the individual or as communicated in a 
172.10 	health care directive as described in chapters 145C and 253B, the crisis treatment plan 
172.11 	described in subdivision 11, a crisis prevention plan, or a wellness recovery action plan.
172.12 	(b) A provider must conduct a crisis assessment at the individual's location when 
172.13 	appropriate and, when not appropriate, document the reasons.
172.14 	(c) Whenever possible, the assessor must attempt to include input from the individual, 
172.15 	the individual's family, and other natural supports to assess whether a crisis exists.
172.16 	(d) A crisis assessment must include a determination of:
172.17 	(1) whether the individual is willing to voluntarily engage in treatment;
172.18 	(2) whether the individual has an advance directive; and
172.19 	(3) gathering the individual's information and history from involved family or other 
172.20 	natural supports.
172.21 	(e) If a team determines that the individual does not need an acute level of care, the team 
172.22 	must provide services or service coordination if the individual has a co-occurring substance 
172.23 	use disorder and is otherwise eligible for services.
172.24 	(f) If, after completing a crisis assessment, a provider refers the individual to an intensive 
172.25 	setting, including an emergency department, inpatient hospitalization, or residential crisis 
172.26 	stabilization, one of the crisis team members who completed or conferred about the 
172.27 	individual's crisis assessment must immediately contact the referral entity and consult with 
172.28 	the staff responsible for triage or intake at the referral entity. During the consultation, the 
172.29 	crisis team member must convey key findings or concerns that led to the individual's referral. 
172.30 	Following the consultation, the provider must also send written documentation to the referral 
173.1 	entity. The provider must document if the individual or the individual's legal guardian signed 
173.2 	releases for health records or if an exception under section 144.293, subdivision 5, exists.
173.3 		Subd. 8.Crisis intervention services.  (a) If the crisis assessment determines an individual 
173.4 	needs mobile crisis intervention services, the license holder must provide crisis intervention 
173.5 	services promptly. As able during the intervention, at least two members of the mobile crisis 
173.6 	intervention team must confer directly or by telephone about the crisis assessment, crisis 
173.7 	treatment plan, and actions taken and needed. At least one of the team members must be 
173.8 	providing face-to-face crisis intervention services. If providing crisis intervention services, 
173.9 	a clinical trainee or mental health practitioner must seek treatment supervision as required 
173.10 	in subdivision 10.
173.11 	(b) If a provider delivers crisis intervention services while the individual is absent, the 
173.12 	provider must document the reason for delivering services while the individual is absent.
173.13 	(c) The mobile crisis intervention team must develop a crisis treatment plan according 
173.14 	to subdivision 11.
173.15 	(d) The mobile crisis intervention team must document which crisis treatment plan goals 
173.16 	and objectives have been met and when no further crisis intervention services are required.
173.17 	(e) If the individual's mental health crisis is stabilized, but the individual needs a referral 
173.18 	to other services, the team must provide referrals to these services. If the individual is unable 
173.19 	to follow up on the referral, the team must link the individual to the service and follow up 
173.20 	to ensure the individual is receiving the service.
173.21 		Subd. 9.Crisis stabilization services. (a) Crisis stabilization services must be provided 
173.22 	by qualified staff of a crisis stabilization services provider entity, which must:
173.23 	(1) develop a crisis treatment plan that meets the criteria in subdivision 11;
173.24 	(2) complete a vulnerable adult determination in accordance with section 245A.65, 
173.25 	subdivision 1a;
173.26 	(3) deliver crisis stabilization services according to the crisis treatment plan and include 
173.27 	face-to-face contact with the individual receiving services by qualified staff for further 
173.28 	assessment, help with referrals, updating of the crisis treatment plan, skills training, and 
173.29 	collaboration with other service providers in the community;
173.30 	(4) if the provider delivers crisis stabilization services while the individual is absent, 
173.31 	document the reason for delivering services while the individual is absent; and
174.1 	(5) if the individual's mental health crisis is stabilized and the individual does not have 
174.2 	a health care directive or psychiatric declaration, as defined in chapter 145C or section 
174.3 	253B.03, subdivision 6d, offer to work with the individual to develop a directive or 
174.4 	declaration.
174.5 	(b) A staff member providing crisis stabilization services must be:
174.6 	(1) a mental health professional qualified under section 245I.04, subdivision 2;
174.7 	(2) a certified rehabilitation specialist qualified under section 245I.04, subdivision 8;
174.8 	(3) a clinical trainee qualified under section 245I.04, subdivision 6;
174.9 	(4) a behavioral health practitioner qualified under section 245I.04, subdivision 4;
174.10 	(5) a mental health certified family peer specialist qualified under section 245I.04, 
174.11 	subdivision 12;
174.12 	(6) a mental health certified peer specialist qualified under section 245I.04, subdivision 
174.13 	10; or
174.14 	(7) a mental health rehabilitation worker qualified under section 245I.04, subdivision 
174.15 	14.
174.16 	(c) For providers under this section, the 30 hours of ongoing training required in section 
174.17 	245I.05, subdivision 4, paragraph (b), must be specific to providing crisis services to children 
174.18 	and adults and include training about evidence-based practices identified by the commissioner 
174.19 	of health to reduce an individual's risk of suicide and self-injurious behavior.
174.20 	(d) For providers who deliver care to children 21 years of age or younger, at least six 
174.21 	hours of the ongoing training under this subdivision must be specific to working with families 
174.22 	and providing crisis stabilization services to children, including the following topics:
174.23 	(1) developmental tasks of childhood and adolescence;
174.24 	(2) family relationships;
174.25 	(3) child and youth engagement and motivation, including motivational interviewing;
174.26 	(4) culturally responsive care, including care for lesbian, gay, bisexual, transgender, and 
174.27 	queer youth;
174.28 	(5) positive behavior support;
174.29 	(6) crisis intervention for youth with developmental disabilities;
175.1 	(7) child traumatic stress, trauma-informed care, and trauma-focused cognitive behavioral 
175.2 	therapy; and
175.3 	(8) youth substance use.
175.4 	This paragraph does not apply to adult residential crisis stabilization services providers 
175.5 	licensed under section 245I.23 or providing services pursuant to section 256B.0624, 
175.6 	subdivision 7a.
175.7 		Subd. 10.Supervision. Clinical trainees and mental health practitioners may provide 
175.8 	crisis assessment and crisis intervention services if the following treatment supervision 
175.9 	requirements are met:
175.10 	(1) the license holder must accept full responsibility for the services provided;
175.11 	(2) a mental health professional working for the license holder must be immediately 
175.12 	available by telephone or in person for treatment supervision;
175.13 	(3) a mental health professional must be consulted, in person or by telephone, during 
175.14 	the first three hours when a clinical trainee or mental health practitioner provides crisis 
175.15 	assessment or crisis intervention services; and
175.16 	(4) a mental health professional must:
175.17 	(i) review and approve, as defined in section 245I.02, subdivision 2, the tentative crisis 
175.18 	assessment and crisis treatment plan within 24 hours of first providing services to the 
175.19 	individual, notwithstanding section 245I.08, subdivision 3; and
175.20 	(ii) document the consultation required in clause (3).
175.21 		Subd. 11.Crisis treatment plan.  (a) Within 24 hours of an individual's admission, the 
175.22 	license holder must complete the individual's crisis treatment plan. The license holder must:
175.23 	(1) base the individual's crisis treatment plan on the individual's crisis assessment;
175.24 	(2) consider crisis assistance strategies that have been effective for the individual in the 
175.25 	past;
175.26 	(3) for a child, use a child-centered, family-driven, and culturally appropriate planning 
175.27 	process that allows the child's parents and guardians to observe or participate in the child's 
175.28 	individual and family treatment services, assessment, and treatment planning;
175.29 	(4) for an adult, use a person-centered, culturally appropriate planning process that allows 
175.30 	the individual's family and other natural supports to observe or participate in treatment 
175.31 	services, assessment, and treatment planning;
176.1 	(5) identify the participants involved in the individual's treatment planning. The individual 
176.2 	must be a participant if possible;
176.3 	(6) identify the individual's initial treatment goals, measurable treatment objectives, and 
176.4 	specific interventions that the license holder will use to help the person engage in treatment;
176.5 	(7) include documentation of referral to and scheduling of services, including specific 
176.6 	providers where applicable;
176.7 	(8) ensure that the individual or the individual's legal guardian approves under section 
176.8 	245I.02, subdivision 2, of the individual's crisis treatment plan unless a court orders the 
176.9 	individual's treatment plan under chapter 253B. If the individual or the individual's legal 
176.10 	guardian disagrees with the crisis treatment plan, the license holder must document in the 
176.11 	client file the reasons why the individual disagrees with the crisis treatment plan; and
176.12 	(9) ensure that a treatment supervisor approves, as defined in section 245I.02, subdivision 
176.13 	2, of the individual's treatment plan within 24 hours of the individual's admission if a mental 
176.14 	health practitioner or clinical trainee completes the crisis treatment plan, notwithstanding 
176.15 	section 245I.08, subdivision 3.
176.16 	(b) The provider entity must provide the individual and the individual's legal guardian 
176.17 	with a copy of the crisis treatment plan.
176.18 		Subd. 12.Application requirements. In a licensing application submitted under this 
176.19 	section and section 245A.04, the applicant must demonstrate that the applicant is:
176.20 	(1) enrolled as a medical assistance provider; and
176.21 	(2) in compliance with the provider type requirements under section 256B.0624, 
176.22 	subdivision 4, as determined by the commissioner.

176.23 	Sec. 34. [245I.30] CHILDREN'S THERAPEUTIC SERVICES AND SUPPORTS.
176.24 		Subdivision 1.Generally. (a) "Children's therapeutic services and supports" means a 
176.25 	flexible package of community-based mental health services for children who require varying 
176.26 	therapeutic and rehabilitative levels of intervention to treat a diagnosed mental illness. 
176.27 	Interventions are delivered using various treatment modalities and combinations of services 
176.28 	designed to reach treatment outcomes identified in the individual treatment plan. Children's 
176.29 	therapeutic services and supports include development and rehabilitative services that 
176.30 	support a child's developmental treatment needs.
176.31 	(b) Beginning January 1, 2028, a provider of children's therapeutic services and supports 
176.32 	must be licensed under this section and chapter 245A.
177.1 		Subd. 2.Service components. (a) A children's therapeutic services and supports license 
177.2 	holder must be capable of providing:
177.3 	(1) individual and family psychotherapy, psychotherapy for crises, and group 
177.4 	psychotherapy;
177.5 	(2) individual, family, or group skills training; and
177.6 	(3) crisis planning.
177.7 	(b) Crisis planning that meets the standards in section 245.4871, subdivision 9a, must 
177.8 	be offered to each client's family.
177.9 		Subd. 3.Provider requirements. A children's therapeutic services and supports license 
177.10 	holder must be enrolled with medical assistance and comply with the requirements in section 
177.11 	256B.0943.
177.12 		Subd. 4.Qualifications of provider staff. Children's therapeutic services and supports 
177.13 	must be provided by:
177.14 	(1) a mental health professional qualified under section 245I.04, subdivision 2;
177.15 	(2) a clinical trainee qualified under section 245I.04, subdivision 6;
177.16 	(3) a behavioral health practitioner qualified under section 245I.04, subdivision 4;
177.17 	(4) a mental health certified family peer specialist qualified under section 245I.04, 
177.18 	subdivision 12; or
177.19 	(5) a mental health behavioral aide qualified under section 245I.04, subdivision 16.
177.20 		Subd. 5.Group modality. Group skills training may be provided to multiple clients 
177.21 	who, because of the nature of the clients' emotional, behavioral, or social dysfunction, can 
177.22 	derive mutual benefit from interaction in a group setting. A group must consist of two to 
177.23 	ten clients, at least one of whom is a client and is concurrently receiving a service under 
177.24 	this section. The service and group must be specified in the client's individual treatment 
177.25 	plan.

177.26 	Sec. 35. [245I.31] CHILDREN'S DAY TREATMENT.
177.27 		Subdivision 1.Generally. (a) For the purposes of this section, "children's day treatment 
177.28 	program" means a site-based structured mental health program consisting of psychotherapy 
177.29 	and individual or group skills training provided by a team under the treatment supervision 
177.30 	of a mental health professional.
178.1 	(b) A children's day treatment program must be licensed for a specific location of 
178.2 	operation and must not be part of inpatient or residential treatment services.
178.3 	(c) A children's day treatment program must stabilize a client's mental health status while 
178.4 	developing and improving the client's independent living and socialization skills. The goal 
178.5 	of the day treatment program must be to reduce or relieve the effects of mental illness and 
178.6 	provide training to enable the client to live in the community.
178.7 	(d) Beginning January 1, 2028, a provider of children's day services must be licensed 
178.8 	under this section and chapter 245A.
178.9 		Subd. 2.Service components. A children's day treatment program must be capable of 
178.10 	providing the services in section 245I.30, subdivision 2.
178.11 		Subd. 3.Provider requirements. A children's day treatment license holder must:
178.12 	(1) be enrolled as a provider with medical assistance;
178.13 	(2) maintain a policy regarding the use of restrictive procedures and meet the requirements 
178.14 	of section 245.8261;
178.15 	(3) maintain a policy on medications in accordance with section 245I.11, subdivision 
178.16 	6; and
178.17 	(4) meet group modality requirements in section 245I.30, subdivision 5.
178.18 		Subd. 4.Qualifications of provider staff. Children's day treatment services must be 
178.19 	provided by:
178.20 	(1) a mental health professional qualified under section 245I.04, subdivision 2;
178.21 	(2) a clinical trainee qualified under section 245I.04, subdivision 6; or
178.22 	(3) a behavioral health practitioner qualified under section 245I.04, subdivision 4.

178.23 	Sec. 36. Minnesota Statutes 2024, section 256B.0623, subdivision 1, is amended to read:
178.24 		Subdivision 1.Scope. Subject to federal approval, Medical assistance covers medically 
178.25 	necessary adult rehabilitative mental health services when the services are provided by an 
178.26 	entity meeting the standards in this section licensed under section 245I.24. The provider 
178.27 	entity must make reasonable and good faith efforts to report individual client outcomes to 
178.28 	the commissioner, using instruments and protocols approved by the commissioner.

178.29 	EFFECTIVE DATE. This section is effective January 1, 2028.

179.1 	Sec. 37. Minnesota Statutes 2024, section 256B.0623, subdivision 3, is amended to read:
179.2 		Subd. 3.Eligibility. An eligible recipient is an individual who:
179.3 	(1) is age 18 or older;
179.4 	(2) is diagnosed with a medical condition, such as mental illness or traumatic brain 
179.5 	injury, for which adult rehabilitative mental health services are needed;
179.6 	(3) has substantial disability and functional impairment in three or more of the areas 
179.7 	listed in section 245I.10, subdivision 9, paragraph (a), clause (4), so that self-sufficiency is 
179.8 	markedly reduced; and
179.9 	(4) has had a recent standard diagnostic assessment pursuant to section 245I.10, 
179.10 	subdivision 6, by a qualified professional that documents adult rehabilitative mental health 
179.11 	services are medically necessary to address identified disability and functional impairments 
179.12 	and individual recipient goals.

179.13 	EFFECTIVE DATE. This section is effective January 1, 2028.

179.14 	Sec. 38. Minnesota Statutes 2024, section 256B.0623, subdivision 12, is amended to read:
179.15 		Subd. 12.Additional requirements. (a) Providers of adult rehabilitative mental health 
179.16 	services must comply with the requirements relating to referrals for case management in 
179.17 	section 245.467, subdivision 4.
179.18 	(b) Adult rehabilitative mental health services are provided for most recipients in the 
179.19 	recipient's home and community. Services may also be provided at the home of a relative 
179.20 	or significant other, job site, psychosocial clubhouse, drop-in center, social setting, classroom, 
179.21 	or other places in the community. (a) Except for "transition to community services," the 
179.22 	place of service does not include a regional treatment center, nursing home, residential 
179.23 	treatment facility licensed under Minnesota Rules, parts 9520.0500 to 9520.0670 (Rule 36), 
179.24 	or section 245I.23, or an acute care hospital.
179.25 	(c) Adult rehabilitative mental health services may be provided in group settings if 
179.26 	appropriate to each participating recipient's needs and individual treatment plan. A group 
179.27 	is defined as two to ten clients, at least one of whom is a recipient, who is concurrently 
179.28 	receiving a service which is identified in this section. The service and group must be specified 
179.29 	in the recipient's individual treatment plan. (b) No more than two qualified staff may bill 
179.30 	Medicaid for services provided to the same group of recipients. If two adult rehabilitative 
179.31 	mental health workers bill for recipients in the same group session, they must each bill for 
179.32 	different recipients.
180.1 	(d) (c) Adult rehabilitative mental health services are appropriate if provided to enable 
180.2 	a recipient to retain stability and functioning, when the recipient is at risk of significant 
180.3 	functional decompensation or requiring more restrictive service settings without these 
180.4 	services.
180.5 	(e) Adult rehabilitative mental health services instruct, assist, and support the recipient 
180.6 	in areas including: interpersonal communication skills, community resource utilization and 
180.7 	integration skills, crisis planning, relapse prevention skills, health care directives, budgeting 
180.8 	and shopping skills, healthy lifestyle skills and practices, cooking and nutrition skills, 
180.9 	transportation skills, medication education and monitoring, mental illness symptom 
180.10 	management skills, household management skills, employment-related skills, parenting 
180.11 	skills, and transition to community living services.
180.12 	(f) Community intervention, including consultation with relatives, guardians, friends, 
180.13 	employers, treatment providers, and other significant individuals, is appropriate when 
180.14 	directed exclusively to the treatment of the client.

180.15 	EFFECTIVE DATE. This section is effective January 1, 2028.

180.16 	Sec. 39. Minnesota Statutes 2024, section 256B.0624, subdivision 1, is amended to read:
180.17 		Subdivision 1.Scope. (a) Subject to federal approval, Medical assistance covers medically 
180.18 	necessary crisis response services when the services are provided according to the standards 
180.19 	in this section 245I.24.
180.20 	(b) Subject to federal approval, Medical assistance covers medically necessary residential 
180.21 	crisis stabilization for adults when the services are provided by an entity licensed under and 
180.22 	meeting the standards in section 245I.23 or an entity with an adult foster care license meeting 
180.23 	the standards in this section subdivision 7a.
180.24 	(c) The provider entity must make reasonable and good faith efforts to report individual 
180.25 	client outcomes to the commissioner using instruments and protocols approved by the 
180.26 	commissioner.

180.27 	EFFECTIVE DATE. This section is effective January 1, 2028.

180.28 	Sec. 40. Minnesota Statutes 2024, section 256B.0624, subdivision 4, is amended to read:
180.29 		Subd. 4.Provider entity standards. (a) A mobile crisis provider must be:
180.30 	(1) a county board operated entity;
181.1 	(2) an Indian health services facility or facility owned and operated by a tribe or Tribal 
181.2 	organization operating under United States Code, title 325, section 450f; or
181.3 	(3) a provider entity that is under contract with the county board in the county where 
181.4 	the potential crisis or emergency is occurring. To provide services under this section, the 
181.5 	provider entity must directly provide the services; or if services are subcontracted, the 
181.6 	provider entity must maintain responsibility for services and billing.
181.7 	(b) A mobile crisis provider must meet the following standards:
181.8 	(1) ensure that crisis screenings, crisis assessments, and crisis intervention services are 
181.9 	available to a recipient 24 hours a day, seven days a week;
181.10 	(2) be able to respond to a call for services in a designated service area or according to 
181.11 	a written agreement with the local mental health authority for an adjacent area;
181.12 	(3) have at least one mental health professional on staff at all times and at least one 
181.13 	additional staff member capable of leading a crisis response in the community; and
181.14 	(4) provide the commissioner with information about the number of requests for service, 
181.15 	the number of people that the provider serves face-to-face, outcomes, and the protocols that 
181.16 	the provider uses when deciding when to respond in the community.
181.17 	(c) A provider entity that provides crisis stabilization services in a residential setting 
181.18 	under subdivision 7 is not required to meet the requirements of paragraphs (a) and (b), but 
181.19 	must meet all other requirements of this subdivision.
181.20 	(d) A crisis services provider must have the capacity to meet and carry out the standards 
181.21 	in section 245I.011, subdivision 5, and the following standards:
181.22 	(1) ensures that staff persons provide support for a recipient's family and natural supports, 
181.23 	by enabling the recipient's family and natural supports to observe and participate in the 
181.24 	recipient's treatment, assessments, and planning services;
181.25 	(2) has adequate administrative ability to ensure availability of services;
181.26 	(3) is able to ensure that staff providing these services are skilled in the delivery of 
181.27 	mental health crisis response services to recipients;
181.28 	(4) is able to ensure that staff are implementing culturally specific treatment identified 
181.29 	in the crisis treatment plan that is meaningful and appropriate as determined by the recipient's 
181.30 	culture, beliefs, values, and language;
182.1 	(5) is able to ensure enough flexibility to respond to the changing intervention and care 
182.2 	needs of a recipient as identified by the recipient or family member during the service 
182.3 	partnership between the recipient and providers;
182.4 	(6) is able to ensure that staff have the communication tools and procedures to 
182.5 	communicate and consult promptly about crisis assessment and interventions as services 
182.6 	occur;
182.7 	(7) is able to coordinate these services with county emergency services, community 
182.8 	hospitals, ambulance, transportation services, social services, law enforcement, engagement 
182.9 	services, and mental health crisis services through regularly scheduled interagency meetings;
182.10 	(8) is able to ensure that services are coordinated with other behavioral health service 
182.11 	providers, county mental health authorities, or federally recognized American Indian 
182.12 	authorities and others as necessary, with the consent of the recipient or parent or guardian. 
182.13 	Services must also be coordinated with the recipient's case manager if the recipient is 
182.14 	receiving case management services;
182.15 	(9) is able to ensure that crisis intervention services are provided in a manner consistent 
182.16 	with sections 245.461 to 245.486 and 245.487 to 245.4879;
182.17 	(10) is able to coordinate detoxification services for the recipient according to Minnesota 
182.18 	Rules, parts 9530.6605 to 9530.6655, or withdrawal management according to chapter 245F;
182.19 	(11) is able to establish and maintain a quality assurance and evaluation plan to evaluate 
182.20 	the outcomes of services and recipient satisfaction; and
182.21 	(12) is an enrolled medical assistance provider.
182.22 	(b) A mobile crisis provider must ensure services are provided consistent with section 
182.23 	245.469, subdivisions 1 and 2.

182.24 	EFFECTIVE DATE. This section is effective January 1, 2028.

182.25 	Sec. 41. Minnesota Statutes 2024, section 256B.0624, is amended by adding a subdivision 
182.26 	to read:
182.27 		Subd. 7a.Residential crisis stabilization services in adult foster care settings. (a) If 
182.28 	crisis stabilization services are provided in a supervised, licensed residential setting that 
182.29 	serves no more than four adult residents, and one or more individuals are present at the 
182.30 	setting to receive residential crisis stabilization, the residential setting staff must include, 
182.31 	for at least eight hours per day, at least one mental health professional, clinical trainee, 
182.32 	certified rehabilitation specialist, or mental health practitioner.
183.1 	(b) The commissioner must establish a statewide per diem rate for crisis stabilization 
183.2 	services provided under this paragraph to medical assistance enrollees. The rate for a provider 
183.3 	must not exceed the rate charged by that provider for the same service to other payers. 
183.4 	Payment must not be made to more than one entity for each individual for services provided 
183.5 	under this paragraph on a given day. The commissioner must set rates prospectively for the 
183.6 	annual rate period. The commissioner must require providers to submit annual cost reports 
183.7 	on a uniform cost reporting form and use submitted cost reports to inform the rate-setting 
183.8 	process. The commissioner must recalculate the statewide per diem every year.
183.9 	(c) A provider under this subdivision must follow the requirements under section 245I.24, 
183.10 	subdivisions 4, paragraphs (c) and (d), and 9.

183.11 	EFFECTIVE DATE. This section is effective January 1, 2028.

183.12 	Sec. 42. Minnesota Statutes 2025 Supplement, section 256B.0625, subdivision 5m, is 
183.13 	amended to read:
183.14 		Subd. 5m.Certified community behavioral health clinic services. (a) Medical 
183.15 	assistance covers services provided by a not-for-profit certified community behavioral health 
183.16 	clinic (CCBHC) that meets the requirements of section 245.735, subdivision 3 245I.17.
183.17 	(b) The commissioner shall reimburse CCBHCs on a per-day basis for each day that an 
183.18 	eligible service is delivered using the CCBHC daily bundled rate system for medical 
183.19 	assistance payments as described in paragraph (c). The commissioner shall include a quality 
183.20 	incentive payment in the CCBHC daily bundled rate system as described in paragraph (e). 
183.21 	There is no county share for medical assistance services when reimbursed through the 
183.22 	CCBHC daily bundled rate system.
183.23 	(c) The commissioner shall ensure that the CCBHC daily bundled rate system for CCBHC 
183.24 	payments under medical assistance meets the following requirements:
183.25 	(1) the CCBHC daily bundled rate shall be a provider-specific rate calculated for each 
183.26 	CCBHC, based on the daily cost of providing CCBHC services and the total annual allowable 
183.27 	CCBHC costs divided by the total annual number of CCBHC visits. For calculating the 
183.28 	payment rate, total annual visits include visits covered by medical assistance and visits not 
183.29 	covered by medical assistance. Allowable costs include but are not limited to the salaries 
183.30 	and benefits of medical assistance providers; the cost of CCBHC services provided under 
183.31 	section 245.735, subdivision 3, paragraph (a), clauses (6) and (7) 245I.17, subdivision 4; 
183.32 	and other costs such as insurance or supplies needed to provide CCBHC services;
184.1 	(2) payment shall be limited to one payment per day per medical assistance enrollee 
184.2 	when an eligible CCBHC service is provided. A CCBHC visit is eligible for reimbursement 
184.3 	if at least one of the CCBHC services listed under section 245.735, subdivision 3, paragraph 
184.4 	(a), clause (6) 245I.17, subdivision 4, is furnished to a medical assistance enrollee by a 
184.5 	health care practitioner or licensed agency employed by or under contract with a CCBHC;
184.6 	(3) initial CCBHC daily bundled rates for newly certified licensed CCBHCs under 
184.7 	section 245.735, subdivision 3 245I.17, shall be established by the commissioner using a 
184.8 	provider-specific rate based on the newly certified licensed CCBHC's audited historical 
184.9 	cost report data adjusted for the expected cost of delivering CCBHC services. Estimates 
184.10 	are subject to review by the commissioner and must include the expected cost of providing 
184.11 	the full scope of CCBHC services and the expected number of visits for the rate period;
184.12 	(4) the commissioner shall rebase CCBHC rates once every two years following the last 
184.13 	rebasing and no less than 12 months following an initial rate or a rate change due to a change 
184.14 	in the scope of services. For CCBHCs certified after September 30, 2020, and before January 
184.15 	1, 2021, the commissioner shall rebase rates according to this clause for services provided 
184.16 	on or after January 1, 2024;
184.17 	(5) the commissioner shall provide for a 60-day appeals process after notice of the results 
184.18 	of the rebasing;
184.19 	(6) an entity that receives a CCBHC daily bundled rate that overlaps with another federal 
184.20 	Medicaid rate is not eligible for the CCBHC rate methodology;
184.21 	(7) payments for CCBHC services to individuals enrolled in managed care shall be 
184.22 	coordinated with the state's phase-out of CCBHC wrap payments. The commissioner shall 
184.23 	complete the phase-out of CCBHC wrap payments within 60 days of the implementation 
184.24 	of the CCBHC daily bundled rate system in the Medicaid Management Information System 
184.25 	(MMIS), for CCBHCs reimbursed under this chapter, with a final settlement of payments 
184.26 	due made payable to CCBHCs no later than 18 months thereafter;
184.27 	(8) the CCBHC daily bundled rate for each CCBHC shall be updated by trending each 
184.28 	provider-specific rate by the Medicare Economic Index for primary care services. This 
184.29 	update shall occur each year in between rebasing periods determined by the commissioner 
184.30 	in accordance with clause (4). CCBHCs must provide data on costs and visits to the state 
184.31 	annually using the CCBHC cost report established by the commissioner; and
184.32 	(9) a CCBHC may request a rate adjustment for changes in the CCBHC's scope of 
184.33 	services when such changes are expected to result in an adjustment to the CCBHC payment 
184.34 	rate by 2.5 percent or more. The CCBHC must provide the commissioner with information 
185.1 	regarding the changes in the scope of services, including the estimated cost of providing 
185.2 	the new or modified services and any projected increase or decrease in the number of visits 
185.3 	resulting from the change. Estimated costs are subject to review by the commissioner. Rate 
185.4 	adjustments for changes in scope shall occur no more than once per year in between rebasing 
185.5 	periods per CCBHC and are effective on the date of the annual CCBHC rate update.
185.6 	(d) Managed care plans and county-based purchasing plans shall reimburse CCBHC 
185.7 	providers at the CCBHC daily bundled rate. The commissioner shall monitor the effect of 
185.8 	this requirement on the rate of access to the services delivered by CCBHC providers. If, for 
185.9 	any contract year, federal approval is not received for this paragraph, the commissioner 
185.10 	must adjust the capitation rates paid to managed care plans and county-based purchasing 
185.11 	plans for that contract year to reflect the removal of this provision. Contracts between 
185.12 	managed care plans and county-based purchasing plans and providers to whom this paragraph 
185.13 	applies must allow recovery of payments from those providers if capitation rates are adjusted 
185.14 	in accordance with this paragraph. Payment recoveries must not exceed the amount equal 
185.15 	to any increase in rates that results from this provision. This paragraph expires if federal 
185.16 	approval is not received for this paragraph at any time.
185.17 	(e) The commissioner shall implement a quality incentive payment program for CCBHCs 
185.18 	that meets the following requirements:
185.19 	(1) a CCBHC shall receive a quality incentive payment upon meeting specific numeric 
185.20 	thresholds for performance metrics established by the commissioner, in addition to payments 
185.21 	for which the CCBHC is eligible under the CCBHC daily bundled rate system described in 
185.22 	paragraph (c);
185.23 	(2) a CCBHC must be certified licensed and enrolled as a CCBHC for the entire 
185.24 	measurement year to be eligible for incentive payments;
185.25 	(3) each CCBHC shall receive written notice of the criteria that must be met in order to 
185.26 	receive quality incentive payments at least 90 days prior to the measurement year; and
185.27 	(4) a CCBHC must provide the commissioner with data needed to determine incentive 
185.28 	payment eligibility within six months following the measurement year. The commissioner 
185.29 	shall notify CCBHC providers of their performance on the required measures and the 
185.30 	incentive payment amount within 12 months following the measurement year.
185.31 	(f) All claims to managed care plans for CCBHC services as provided under this section 
185.32 	shall be submitted directly to, and paid by, the commissioner on the dates specified no later 
185.33 	than January 1 of the following calendar year, if:
186.1 	(1) one or more managed care plans does not comply with the federal requirement for 
186.2 	payment of clean claims to CCBHCs, as defined in Code of Federal Regulations, title 42, 
186.3 	section 447.45(b), and the managed care plan does not resolve the payment issue within 30 
186.4 	days of noncompliance; and
186.5 	(2) the total amount of clean claims not paid in accordance with federal requirements 
186.6 	by one or more managed care plans is 50 percent of, or greater than, the total CCBHC claims 
186.7 	eligible for payment by managed care plans.
186.8 	If the conditions in this paragraph are met between January 1 and June 30 of a calendar 
186.9 	year, claims shall be submitted to and paid by the commissioner beginning on January 1 of 
186.10 	the following year. If the conditions in this paragraph are met between July 1 and December 
186.11 	31 of a calendar year, claims shall be submitted to and paid by the commissioner beginning 
186.12 	on July 1 of the following year.
186.13 	(g) Peer services provided by a CCBHC certified licensed under section 245.735 245I.17
186.14 	are a covered service under medical assistance when a licensed mental health professional 
186.15 	or alcohol and drug counselor determines that peer services are medically necessary. 
186.16 	Eligibility under this subdivision for peer services provided by a CCBHC supersede eligibility 
186.17 	standards under sections 256B.0615, 256B.0616, and 245G.07, subdivision 2a, paragraph 
186.18 	(b), clause (2).

186.19 	EFFECTIVE DATE. This section is effective January 1, 2028.

186.20 	Sec. 43. Minnesota Statutes 2024, section 256B.0943, subdivision 2, is amended to read:
186.21 		Subd. 2.Covered service components of children's therapeutic services and 
186.22 	supports. (a) Subject to federal approval, medical assistance covers medically necessary 
186.23 	children's therapeutic services and supports when the services are provided by an eligible 
186.24 	provider entity certified under and meeting the standards in this section licensed under 
186.25 	section 245I.30 or children's day treatment services licensed under section 245I.31. The 
186.26 	provider entity must make reasonable and good faith efforts to report individual client 
186.27 	outcomes to the commissioner, using instruments and protocols approved by the 
186.28 	commissioner.
186.29 	(b) The covered service components of children's therapeutic services and supports are:
186.30 	(1) patient and/or family psychotherapy, family psychotherapy, psychotherapy for crisis, 
186.31 	and group psychotherapy;
186.32 	(2) individual, family, or group skills training provided by a mental health professional, 
186.33 	clinical trainee, or mental health practitioner;
187.1 	(3) crisis planning;
187.2 	(4) mental health behavioral aide services;
187.3 	(1) the services described in section 245I.30, subdivision 2, provided by providers 
187.4 	licensed under section 245I.30 or 245I.31;
187.5 	(2) administration of standardized measures;
187.6 	(5) (3) direction of a mental health behavioral aide; and
187.7 	(6) (4) mental health service plan development; and.
187.8 	(7) children's day treatment.
187.9 	(c) In delivering services under this section, a licensed provider entity must ensure that 
187.10 	psychotherapy to address a child's underlying mental health disorder is documented as part 
187.11 	of the child's ongoing treatment. A provider must deliver or arrange for medically necessary 
187.12 	psychotherapy unless the child's parent or caregiver chooses not to receive the psychotherapy 
187.13 	or the provider determines that psychotherapy is no longer medically necessary. When a 
187.14 	provider determines that psychotherapy is no longer medically necessary, the provider must 
187.15 	update required documentation, including but not limited to the individual treatment plan, 
187.16 	the child's medical record, or other authorizations, to include the determination. When a 
187.17 	provider determines that a child needs psychotherapy but psychotherapy cannot be delivered 
187.18 	due to a shortage of licensed mental health professionals in the child's community, the 
187.19 	provider must document the lack of access in the child's medical record.
187.20 	(d) Medical assistance covers service plan development before completion of a child's 
187.21 	individual treatment plan. Service plan development consists of development, review, and 
187.22 	revision of the individual treatment plan by face-to-face or electronic communication, 
187.23 	including time spent gathering client history from other key figures or providers. The provider 
187.24 	must document events, including the time spent with the family and other key participants 
187.25 	in the child's life to approve the individual treatment plan. Service plan development is 
187.26 	covered only if a treatment plan is completed or for work already completed at the time the 
187.27 	client voluntarily chooses to disengage with services for the child. If it is determined upon 
187.28 	review that a treatment plan was not completed for the child, the commissioner shall recover 
187.29 	the payment for the service plan development.
187.30 	(e) Medical assistance covers time spent administering and reporting standardized 
187.31 	measures approved by the commissioner.

187.32 	EFFECTIVE DATE. This section is effective January 1, 2028.

188.1 	Sec. 44. Minnesota Statutes 2025 Supplement, section 256B.0943, subdivision 3, is 
188.2 	amended to read:
188.3 		Subd. 3.Determination of client eligibility. (a) A client's eligibility to receive children's 
188.4 	therapeutic services and supports under this section shall be determined based on a standard 
188.5 	diagnostic assessment by a mental health professional or a clinical trainee that is performed 
188.6 	within one year before the initial start of service and updated as required under section 
188.7 	245I.10, subdivision 2. The standard diagnostic assessment must:
188.8 	(1) determine whether a child under age 18 has a diagnosis of mental illness or, if the 
188.9 	person is between the ages of 18 and 21, whether the person has a mental illness; and
188.10 	(2) document children's therapeutic services and supports as medically necessary to 
188.11 	address an identified disability, functional impairment, and the individual client's needs and 
188.12 	goals; and.
188.13 	(3) be used in the development of the individual treatment plan.
188.14 	(b) Notwithstanding paragraph (a), a client may be determined to be eligible for up to 
188.15 	five days of day treatment under this section based on a hospital's medical history and 
188.16 	presentation examination of the client.
188.17 	(c) Children's therapeutic services and supports include development and rehabilitative 
188.18 	services that support a child's developmental treatment needs.

188.19 	Sec. 45. Minnesota Statutes 2025 Supplement, section 256B.0943, subdivision 12, is 
188.20 	amended to read:
188.21 		Subd. 12.Excluded services. (a) The following services are not eligible for medical 
188.22 	assistance payment as children's therapeutic services and supports:
188.23 	(1) service components of children's therapeutic services and supports simultaneously 
188.24 	provided by more than one provider entity unless prior authorization is obtained;
188.25 	(2) treatment by multiple providers within the same agency at the same clock time, 
188.26 	unless one service is delivered to the child and the other service is delivered to the child's 
188.27 	family or treatment team without the child present;
188.28 	(3) children's therapeutic services and supports provided in violation of medical assistance 
188.29 	policy in Minnesota Rules, part 9505.0220;
188.30 	(4) mental health behavioral aide services provided by a personal care assistant who is 
188.31 	not qualified as a mental health behavioral aide and employed by a certified children's 
188.32 	therapeutic services and supports provider entity;
189.1 	(5) service components of CTSS that are the responsibility of a residential or program 
189.2 	license holder, including foster care providers under the terms of a service agreement or 
189.3 	administrative rules governing licensure; and
189.4 	(6) adjunctive activities that may be offered by a provider entity but are not otherwise 
189.5 	covered by medical assistance, including:
189.6 	(i) a service that is primarily recreation oriented or that is provided in a setting that is 
189.7 	not medically supervised. This includes sports activities, exercise groups, activities such as 
189.8 	craft hours, leisure time, social hours, meal or snack time, trips to community activities, 
189.9 	and tours;
189.10 	(ii) a social or educational service that does not have or cannot reasonably be expected 
189.11 	to have a therapeutic outcome related to the client's mental illness;
189.12 	(iii) prevention or education programs provided to the community; and
189.13 	(iv) treatment for clients with primary diagnoses of alcohol or other drug abuse.
189.14 	(b) Time spent on administrative tasks before and after providing direct services, including 
189.15 	scheduling or maintaining clinical records, is included in CTSS payments and may not be 
189.16 	separately billed as additional clock hours of service.

189.17 	Sec. 46. Minnesota Statutes 2025 Supplement, section 260E.14, subdivision 1, is amended 
189.18 	to read:
189.19 		Subdivision 1.Facilities and schools. (a) The local welfare agency is the agency 
189.20 	responsible for investigating allegations of maltreatment in child foster care, family child 
189.21 	care, legally nonlicensed child care, and reports involving children served by an unlicensed 
189.22 	personal care provider organization under section 256B.0659. Copies of findings related to 
189.23 	personal care provider organizations under section 256B.0659 must be forwarded to the 
189.24 	Department of Human Services provider enrollment.
189.25 	(b) The Department of Human Services is the agency responsible for screening and 
189.26 	investigating allegations of maltreatment in juvenile correctional facilities listed under 
189.27 	section 241.021 located in the local welfare agency's county and in facilities licensed or 
189.28 	certified under chapters 245A and 245D.
189.29 	(c) The Department of Health is the agency responsible for screening and investigating 
189.30 	allegations of maltreatment in facilities licensed under sections 144.50 to 144.58 and 144A.43 
189.31 	to 144A.482 or chapter 144H.
190.1 	(d) The Department of Education is the agency responsible for screening and investigating 
190.2 	allegations of maltreatment in a school as defined in section 120A.05, subdivisions 9, 11, 
190.3 	and 13, and chapter 124E. The Department of Education's responsibility to screen and 
190.4 	investigate includes allegations of maltreatment involving students 18 through 21 years of 
190.5 	age, including students receiving special education services, up to and including graduation 
190.6 	and the issuance of a secondary or high school diploma.
190.7 	(e) The Department of Human Services is the agency responsible for screening and 
190.8 	investigating allegations of maltreatment of minors in an EIDBI agency operating under 
190.9 	sections 245A.142 and 256B.0949.
190.10 	(f) A health or corrections agency receiving a report may request the local welfare agency 
190.11 	to provide assistance pursuant to this section and sections 260E.20 and 260E.22.
190.12 	(g) The Department of Children, Youth, and Families is the agency responsible for 
190.13 	screening and investigating allegations of maltreatment in facilities or programs not listed 
190.14 	in paragraph (a) that are licensed or certified under chapters 142B and 142C.
190.15 	(h) The Department of Human Services is the agency responsible for screening and 
190.16 	investigating allegations of maltreatment of minors for mobile crisis response services and 
190.17 	children's therapeutic services and supports programs licensed under chapter 245I.

190.18 	Sec. 47. Minnesota Statutes 2025 Supplement, section 626.5572, subdivision 13, is amended 
190.19 	to read:
190.20 		Subd. 13.Lead investigative agency. "Lead investigative agency" is the primary 
190.21 	administrative agency responsible for investigating reports made under section 626.557.
190.22 	(a) The Department of Health is the lead investigative agency for facilities or services 
190.23 	licensed or required to be licensed as hospitals, home care providers, nursing homes, boarding 
190.24 	care homes, hospice providers, residential facilities that are also federally certified as 
190.25 	intermediate care facilities that serve people with developmental disabilities, or any other 
190.26 	facility or service not listed in this subdivision that is licensed or required to be licensed by 
190.27 	the Department of Health for the care of vulnerable adults. "Home care provider" has the 
190.28 	meaning provided in section 144A.43, subdivision 4, and applies when care or services are 
190.29 	delivered in the vulnerable adult's home.
190.30 	(b) The Department of Human Services is the lead investigative agency for facilities or 
190.31 	services licensed or required to be licensed as adult day care, adult foster care, community 
190.32 	residential settings, programs for people with disabilities, EIDBI agencies, family adult day 
190.33 	services, mental health programs licensed under chapter 245I, mental health clinics, substance 
191.1 	use disorder programs, the Minnesota Sex Offender Program, or any other facility or service 
191.2 	not listed in this subdivision that is licensed or required to be licensed by the Department 
191.3 	of Human Services. The Department of Human Services is also the lead investigative agency 
191.4 	for unlicensed EIDBI agencies under section 256B.0949. The Department of Human Services 
191.5 	is the lead investigative agency for adult rehabilitative mental health services under section 
191.6 	245I.22, mobile crisis response services under section 245I.24, and certified community 
191.7 	behavioral health clinics under section 245I.17.
191.8 	(c) The county social service agency or its designee is the lead investigative agency for 
191.9 	all other reports, including but not limited to reports involving vulnerable adults receiving 
191.10 	services from a personal care provider organization under section 256B.0659.

191.11 	EFFECTIVE DATE. This section is effective January 1, 2028.

191.12 	Sec. 48. REVISOR INSTRUCTION.
 191.13 	The revisor of statutes shall renumber Minnesota Statutes, section 245.735, subdivisions 
191.14 	5 and 6, as Minnesota Statutes, section 245I.17, subdivisions 23 and 24.

191.15 	Sec. 49. REPEALER.
 191.16 	(a) Minnesota Statutes 2024, sections 245.735, subdivisions 1a, 2a, 3a, 3b, 3c, 3d, 3e, 
191.17 	3f, 3g, 3h, 4a, 4b, 4c, 4e, 7, and 8; 245C.03, subdivision 7; 245I.20, subdivision 9; 245I.23, 
191.18 	subdivision 23; 256B.0623, subdivisions 2, 4, 5, 6, and 9; 256B.0624, subdivisions 2, 3, 
191.19 	4a, 5, 6, 6a, 6b, 7, 8, 9, and 11; and 256B.0943, subdivisions 4, 5, 5a, 6, 7, and 11, are 
191.20 	repealed.
191.21 	(b) Minnesota Statutes 2025 Supplement, sections 245.735, subdivisions 3 and 4d; and 
191.22 	256B.0943, subdivisions 1 and 9, are repealed.

191.23 	EFFECTIVE DATE. This section is effective January 1, 2028.

191.24 	ARTICLE 6
191.25 	AGING AND DISABILITY SERVICES

191.26 	Section 1. Minnesota Statutes 2024, section 245D.12, is amended to read:
191.27 	245D.12 INTEGRATED COMMUNITY SUPPORTS; SETTING CAPACITY 
191.28 	REPORT.
191.29 		Subdivision 1.Setting capacity report. (a) The license holder providing integrated 
191.30 	community support, as defined in section 245D.03, subdivision 1, paragraph (c), clause (8), 
191.31 	must submit a setting capacity report to the commissioner to ensure the identified location 
192.1 	of service delivery meets the criteria of the home and community-based service requirements 
192.2 	as specified in section 256B.492.
192.3 	(b) The license holder shall provide the setting capacity report on the forms and in the 
192.4 	manner prescribed by the commissioner. The report must include:
192.5 	(1) the address of the multifamily housing building where the license holder delivers 
192.6 	integrated community supports and owns, leases, or has a direct or indirect financial 
192.7 	relationship with the property owner;
192.8 	(2) the total number of living units in the multifamily housing building described in 
192.9 	clause (1) where integrated community supports are delivered;
192.10 	(3) the total number of living units in the multifamily housing building described in 
192.11 	clause (1), including the living units identified in clause (2);
192.12 	(4) the total number of people who could reside in the living units in the multifamily 
192.13 	housing building described in clause (2) and receive integrated community supports; and
192.14 	(5) the percentage of living units that are controlled by the license holder in the 
192.15 	multifamily housing building by dividing clause (2) by clause (3).
192.16 	(c) Only one license holder may deliver integrated community supports at the address 
192.17 	of the multifamily housing building.
192.18 		Subd. 2.Licensure moratorium. (a) Except as permitted in this subdivision, the 
192.19 	commissioner must not issue an initial license under this chapter authorizing integrated 
192.20 	community supports under section 245D.03, subdivision 1, paragraph (c), clause (8), and 
192.21 	must not approve a license change adding integrated community supports to an existing 
192.22 	license under this chapter.
192.23 	(b) The commissioner may approve an exception to the moratorium only when the 
192.24 	applicant or licensee meets all requirements under subdivision 1, the request is not superseded 
192.25 	by temporary moratoriums under section 245A.03, subdivision 7a, and the applicant submits 
192.26 	documentation demonstrating compliance with:
192.27 	(1) federal and state home and community-based services requirements for 
192.28 	provider-controlled settings;
192.29 	(2) the prohibition on the use of Medicaid money for room and board under United 
192.30 	States Code, title 42, section 1396n(c); and
192.31 	(3) all licensing requirements applicable to integrated community supports under this 
192.32 	chapter.
193.1 	(c) In determining whether to approve an exception, the commissioner must consider 
193.2 	statewide and regional capacity for integrated community supports based on needs 
193.3 	determination processes under section 245A.03, subdivision 7, paragraph (e).
193.4 	(d) A determination under this subdivision is final and not subject to appeal.

193.5 	EFFECTIVE DATE. This section is effective January 1, 2027.

193.6 	Sec. 2. Minnesota Statutes 2024, section 256B.0623, is amended by adding a subdivision 
193.7 	to read:
193.8 		Subd. 15.Billing limits. The maximum billable units for adult rehabilitation mental 
193.9 	health services under this section without authorization from the commissioner are:
193.10 	(1) four hours per week per recipient combined total of H2017, H2017 HM, and H2017 
193.11 	HQ;
193.12 	(2) 18 hours per month per recipient combined total of H2017, H2017 HM, and H2017 
193.13 	HQ; or
193.14 	(3) 200 hours per year per recipient combined total of H2017, H2017 HM, and H2017 
193.15 	HQ.

193.16 	EFFECTIVE DATE. This section is effective January 1, 2027.

193.17 	Sec. 3. Minnesota Statutes 2025 Supplement, section 256B.0625, subdivision 17, is 
193.18 	amended to read:
193.19 		Subd. 17.Transportation costs. (a) "Nonemergency medical transportation service" 
193.20 	means motor vehicle transportation provided by a public or private person that serves 
193.21 	Minnesota health care program beneficiaries who do not require emergency ambulance 
193.22 	service, as defined in section 144E.001, subdivision 3, to obtain covered medical services.
193.23 	(b) For purposes of this subdivision, "rural urban commuting area" or "RUCA" means 
193.24 	a census-tract based classification system under which a geographical area is determined 
193.25 	to be urban, rural, or super rural. This paragraph expires July 1, 2026, for medical assistance 
193.26 	fee-for-service and January 1, 2027, for prepaid medical assistance.
193.27 	(c) Medical assistance covers medical transportation costs incurred solely for obtaining 
193.28 	emergency medical care or transportation costs incurred by eligible persons in obtaining 
193.29 	emergency or nonemergency medical care when paid directly to an ambulance company, 
193.30 	nonemergency medical transportation company, or other recognized providers of 
193.31 	transportation services. Medical transportation must be provided by:
194.1 	(1) nonemergency medical transportation providers who meet the requirements of this 
194.2 	subdivision;
194.3 	(2) ambulances, as defined in section 144E.001, subdivision 2;
194.4 	(3) taxicabs that meet the requirements of this subdivision;
194.5 	(4) public transportation, within the meaning of "public transportation" as defined in 
194.6 	section 174.22, subdivision 7; or
194.7 	(5) not-for-hire vehicles, including volunteer drivers, as defined in section 65B.472, 
194.8 	subdivision 1, paragraph (p).
194.9 	(d) Medical assistance covers nonemergency medical transportation provided by 
194.10 	nonemergency medical transportation providers enrolled in the Minnesota health care 
194.11 	programs. All nonemergency medical transportation providers must comply with the 
194.12 	operating standards for special transportation service as defined in sections 174.29 to 174.30 
194.13 	and Minnesota Rules, chapter 8840, and all drivers must be individually enrolled with the 
194.14 	commissioner and reported on the claim as the individual who provided the service. All 
194.15 	nonemergency medical transportation providers shall bill for nonemergency medical 
194.16 	transportation services in accordance with Minnesota health care programs criteria. Publicly 
194.17 	operated transit systems, volunteers, and not-for-hire vehicles are exempt from the 
194.18 	requirements outlined in this paragraph. This paragraph expires upon the effective date of 
194.19 	paragraph (e).
194.20 	(e) Effective January 1, 2027, or upon federal approval, whichever is later, medical 
194.21 	assistance covers nonemergency medical transportation provided by nonemergency medical 
194.22 	transportation providers enrolled in the Minnesota health care programs. All nonemergency 
194.23 	medical transportation providers must comply with the operating standards for special 
194.24 	transportation service as defined in sections 174.29 to 174.30 and Minnesota Rules, chapter 
194.25 	8840, and all drivers must be individually enrolled with the commissioner and reported on 
194.26 	the claim as the individual who provided the service. All nonemergency medical 
194.27 	transportation providers shall bill for nonemergency medical transportation services in 
194.28 	accordance with Minnesota health care programs criteria and comply with the requirements 
194.29 	of section 256B.073. Publicly operated transit systems, volunteers, and not-for-hire vehicles 
194.30 	are exempt from the requirements outlined in this paragraph.
194.31 	(e)(f) An organization may be terminated, denied, or suspended from enrollment if:
194.32 	(1) the provider has not initiated background studies on the individuals specified in 
194.33 	section 174.30, subdivision 10, paragraph (a), clauses (1) to (3); or
195.1 	(2) the provider has initiated background studies on the individuals specified in section 
195.2 	174.30, subdivision 10, paragraph (a), clauses (1) to (3), and:
195.3 	(i) the commissioner has sent the provider a notice that the individual has been 
195.4 	disqualified under section 245C.14; and
195.5 	(ii) the individual has not received a disqualification set-aside specific to the special 
195.6 	transportation services provider under sections 245C.22 and 245C.23.
195.7 	(f)(g) The administrative agency of nonemergency medical transportation must:
195.8 	(1) adhere to the policies defined by the commissioner;
195.9 	(2) pay nonemergency medical transportation providers for services provided to 
195.10 	Minnesota health care programs beneficiaries to obtain covered medical services;
195.11 	(3) provide data monthly to the commissioner on appeals, complaints, no-shows, canceled 
195.12 	trips, and number of trips by mode; and
195.13 	(4) by July 1, 2016, in accordance with subdivision 18e, utilize a web-based single 
195.14 	administrative structure assessment tool that meets the technical requirements established 
195.15 	by the commissioner, reconciles trip information with claims being submitted by providers, 
195.16 	and ensures prompt payment for nonemergency medical transportation services. This 
195.17 	paragraph expires July 1, 2026, for medical assistance fee-for-service and January 1, 2027, 
195.18 	for prepaid medical assistance.
195.19 	(g)(h) Effective July 1, 2026, for medical fee-for-service and January 1, 2027, for prepaid 
195.20 	medical assistance, the administrative agency of nonemergency medical transportation must:
195.21 	(1) adhere to the policies defined by the commissioner;
195.22 	(2) pay nonemergency medical transportation providers for services provided to 
195.23 	Minnesota health care program beneficiaries to obtain covered medical services; and
195.24 	(3) provide data monthly to the commissioner on appeals, complaints, no-shows, canceled 
195.25 	trips, and number of trips by mode.
195.26 	(h)(i) Until the commissioner implements the single administrative structure and delivery 
195.27 	system under subdivision 18e, clients shall obtain their level-of-service certificate from the 
195.28 	commissioner or an entity approved by the commissioner that does not dispatch rides for 
195.29 	clients using modes of transportation under paragraph (n) (o), clauses (4), (5), (6), and (7). 
195.30 	This paragraph expires July 1, 2026, for medical assistance fee-for-service and January 1, 
195.31 	2027, for prepaid medical assistance.
196.1 	(i)(j) The commissioner may use an order by the recipient's attending physician, advanced 
196.2 	practice registered nurse, physician assistant, or a medical or mental health professional to 
196.3 	certify that the recipient requires nonemergency medical transportation services. 
196.4 	Nonemergency medical transportation providers shall perform driver-assisted services for 
196.5 	eligible individuals, when appropriate. Driver-assisted service includes passenger pickup 
196.6 	at and return to the individual's residence or place of business, assistance with admittance 
196.7 	of the individual to the medical facility, and assistance in passenger securement or in securing 
196.8 	of wheelchairs, child seats, or stretchers in the vehicle.
196.9 	(j)(k) Nonemergency medical transportation providers must take clients to the health 
196.10 	care provider using the most direct route, and must not exceed 30 miles for a trip to a primary 
196.11 	care provider or 60 miles for a trip to a specialty care provider, unless the client receives 
196.12 	authorization from the local agency. This paragraph expires July 1, 2026, for medical 
196.13 	assistance fee-for-service and January 1, 2027, for prepaid medical assistance.
196.14 	(k)(l) Effective July 1, 2026, for medical assistance fee-for-service and January 1, 2027, 
196.15 	for prepaid medical assistance, nonemergency medical transportation providers must take 
196.16 	clients to the health care provider using the most direct route and must not exceed 30 miles 
196.17 	for a trip to a primary care provider or 60 miles for a trip to a specialty care provider, unless 
196.18 	the client receives authorization from the administrator.
196.19 	(l)(m) Nonemergency medical transportation providers may not bill for separate base 
196.20 	rates for the continuation of a trip beyond the original destination. Nonemergency medical 
196.21 	transportation providers must maintain trip logs, which include pickup and drop-off times, 
196.22 	signed by the medical provider or client, whichever is deemed most appropriate, attesting 
196.23 	to mileage traveled to obtain covered medical services. Clients requesting client mileage 
196.24 	reimbursement must sign the trip log attesting mileage traveled to obtain covered medical 
196.25 	services.
196.26 	(m)(n) The administrative agency shall use the level of service process established by 
196.27 	the commissioner to determine the client's most appropriate mode of transportation. If public 
196.28 	transit or a certified transportation provider is not available to provide the appropriate service 
196.29 	mode for the client, the client may receive a onetime service upgrade.
196.30 	(n)(o) The covered modes of transportation are:
196.31 	(1) client reimbursement, which includes client mileage reimbursement provided to 
196.32 	clients who have their own transportation, or to family or an acquaintance who provides 
196.33 	transportation to the client;
197.1 	(2) volunteer transport, which includes transportation by volunteers using their own 
197.2 	vehicle;
197.3 	(3) unassisted transport, which includes transportation provided to a client by a taxicab 
197.4 	or public transit. If a taxicab or public transit is not available, the client can receive 
197.5 	transportation from another nonemergency medical transportation provider;
197.6 	(4) assisted transport, which includes transport provided to clients who require assistance 
197.7 	by a nonemergency medical transportation provider;
197.8 	(5) lift-equipped/ramp transport, which includes transport provided to a client who is 
197.9 	dependent on a device and requires a nonemergency medical transportation provider with 
197.10 	a vehicle containing a lift or ramp;
197.11 	(6) protected transport, which includes transport provided to a client who has received 
197.12 	a prescreening that has deemed other forms of transportation inappropriate and who requires 
197.13 	a provider: (i) with a protected vehicle that is not an ambulance or police car and has safety 
197.14 	locks, a video recorder, and a transparent thermoplastic partition between the passenger and 
197.15 	the vehicle driver; and (ii) who is certified as a protected transport provider; and
197.16 	(7) stretcher transport, which includes transport for a client in a prone or supine position 
197.17 	and requires a nonemergency medical transportation provider with a vehicle that can transport 
197.18 	a client in a prone or supine position.
197.19 	(o)(p) The local agency shall be the single administrative agency and shall administer 
197.20 	and reimburse for modes defined in paragraph (n)(o) according to paragraphs (r)(s) to (t)
197.21 	(u) when the commissioner has developed, made available, and funded the web-based single 
197.22 	administrative structure, assessment tool, and level of need assessment under subdivision 
197.23 	18e. The local agency's financial obligation is limited to funds provided by the state or 
197.24 	federal government. This paragraph expires July 1, 2026, for medical assistance 
197.25 	fee-for-service and January 1, 2027, for prepaid medical assistance.
197.26 	(p)(q) The commissioner shall:
197.27 	(1) verify that the mode and use of nonemergency medical transportation is appropriate;
197.28 	(2) verify that the client is going to an approved medical appointment; and
197.29 	(3) investigate all complaints and appeals.
197.30 	(q)(r) The administrative agency shall pay for the services provided in this subdivision 
197.31 	and seek reimbursement from the commissioner, if appropriate. As vendors of medical care, 
197.32 	local agencies are subject to the provisions in section 256B.041, the sanctions and monetary 
198.1 	recovery actions in section 256B.064, and Minnesota Rules, parts 9505.2160 to 9505.2245. 
198.2 	This paragraph expires July 1, 2026, for medical assistance fee-for-service and January 1, 
198.3 	2027, for prepaid medical assistance.
198.4 	(r)(s) Payments for nonemergency medical transportation must be paid based on the 
198.5 	client's assessed mode under paragraph (m) (n), not the type of vehicle used to provide the 
198.6 	service. The medical assistance reimbursement rates for nonemergency medical transportation 
198.7 	services that are payable by or on behalf of the commissioner for nonemergency medical 
198.8 	transportation services are:
198.9 	(1) $0.22 per mile for client reimbursement;
198.10 	(2) up to 100 percent of the Internal Revenue Service business deduction rate for volunteer 
198.11 	transport;
198.12 	(3) equivalent to the standard fare for unassisted transport when provided by public 
198.13 	transit, and $12.10 for the base rate and $1.43 per mile when provided by a nonemergency 
198.14 	medical transportation provider;
198.15 	(4) $14.30 for the base rate and $1.43 per mile for assisted transport;
198.16 	(5) $19.80 for the base rate and $1.70 per mile for lift-equipped/ramp transport;
198.17 	(6) $75 for the base rate and $2.40 per mile for protected transport; and
198.18 	(7) $60 for the base rate and $2.40 per mile for stretcher transport, and $9 per trip for 
198.19 	an additional attendant if deemed medically necessary. This paragraph expires July 1, 2026, 
198.20 	for medical assistance fee-for-service and January 1, 2027, for prepaid medical assistance.
198.21 	(s)(t) Effective July 1, 2026, for medical assistance fee-for-service and January 1, 2027, 
198.22 	for prepaid medical assistance, payments for nonemergency medical transportation must 
198.23 	be paid based on the client's assessed mode under paragraph (m) (n), not the type of vehicle 
198.24 	used to provide the service.
198.25 	(t)(u) The base rate for nonemergency medical transportation services in areas defined 
198.26 	under RUCA to be super rural is equal to 111.3 percent of the respective base rate in 
198.27 	paragraph (r) (s), clauses (1) to (7). The mileage rate for nonemergency medical transportation 
198.28 	services in areas defined under RUCA to be rural or super rural areas is:
198.29 	(1) for a trip equal to 17 miles or less, equal to 125 percent of the respective mileage 
198.30 	rate in paragraph (r) (s), clauses (1) to (7); and
199.1 	(2) for a trip between 18 and 50 miles, equal to 112.5 percent of the respective mileage 
199.2 	rate in paragraph (r) (s), clauses (1) to (7). This paragraph expires July 1, 2026, for medical 
199.3 	assistance fee-for-service and January 1, 2027, for prepaid medical assistance.
199.4 	(u)(v) For purposes of reimbursement rates for nonemergency medical transportation 
199.5 	services under paragraphs (r)(s) to (t) (u), the zip code of the recipient's place of residence 
199.6 	shall determine whether the urban, rural, or super rural reimbursement rate applies. This 
199.7 	paragraph expires July 1, 2026, for medical assistance fee-for-service and January 1, 2027, 
199.8 	for prepaid medical assistance.
199.9 	(v)(w) The commissioner, when determining reimbursement rates for nonemergency 
199.10 	medical transportation, shall exempt all modes of transportation listed under paragraph (n)
199.11 	(o) from Minnesota Rules, part 9505.0445, item R, subitem (2).
199.12 	(w)(x) Effective for the first day of each calendar quarter in which the price of gasoline 
199.13 	as posted publicly by the United States Energy Information Administration exceeds $3.00 
199.14 	per gallon, the commissioner shall adjust the rate paid per mile in paragraph (r)(s) by one 
199.15 	percent up or down for every increase or decrease of ten cents for the price of gasoline. The 
199.16 	increase or decrease must be calculated using a base gasoline price of $3.00. The percentage 
199.17 	increase or decrease must be calculated using the average of the most recently available 
199.18 	price of all grades of gasoline for Minnesota as posted publicly by the United States Energy 
199.19 	Information Administration. This paragraph expires July 1, 2026, for medical assistance 
199.20 	fee-for-service and January 1, 2027, for prepaid medical assistance.

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

199.22 	Sec. 4. Minnesota Statutes 2024, section 256B.0625, subdivision 17b, is amended to read:
199.23 		Subd. 17b.Documentation required. (a) As a condition for payment, nonemergency 
199.24 	medical transportation providers must document each occurrence of a service provided to 
199.25 	a recipient according to this subdivision. Providers must maintain records sufficient to 
199.26 	distinguish individual trips with specific vehicles and drivers. The documentation may be 
199.27 	collected and maintained using electronic systems or software or in paper form but must be 
199.28 	made available and produced upon request. Program funds paid for transportation that is 
199.29 	not documented according to this subdivision may be subject to recovery by the commissioner 
199.30 	pursuant to section 256B.064.
199.31 	(b) A nonemergency medical transportation provider must compile transportation trip 
199.32 	records that are written in English and legible according to the standard of a reasonable 
199.33 	person and that include each of the following elements:
200.1 	(1) the recipient's name;
200.2 	(2) the date or dates the service is provided, if different than the date the entry was made;
200.3 	(3) either the printed name of the driver sufficient to distinguish the driver of service or 
200.4 	the driver's provider number;
200.5 	(4) the date and the signature of the driver attesting that the record accurately represents 
200.6 	the services provided and the actual miles driven, and acknowledging that misreporting 
200.7 	information that results in ineligible or excessive payments may result in civil or criminal 
200.8 	action;
200.9 	(5) the date and the signature of the recipient or authorized party attesting that 
200.10 	transportation services were provided as indicated on the transportation trip record, or the 
200.11 	signature of the medical services provider certifying that the recipient was transported to 
200.12 	the medical services provider destination. In the event that both the medical services provider 
200.13 	and the recipient or authorized party refuse or are unable to provide signatures, the driver 
200.14 	must document on the transportation trip record that signatures were requested and not 
200.15 	provided;
200.16 	(6) the address, or the description if the address is not available, of both the origin and 
200.17 	destination, and the mileage for the most direct route from the origin to the destination;
200.18 	(7) the name or number of the mode of transportation in which the service is provided;
200.19 	(8) the license plate number of the vehicle used to transport the recipient;
200.20 	(9) the time of the recipient pickup;
200.21 	(10) the time of the recipient drop-off;
200.22 	(11) the odometer reading of the vehicle used to transport the recipient taken at the time 
200.23 	of pickup;
200.24 	(12) the odometer reading of the vehicle used to transport the recipient taken at the time 
200.25 	of drop-off;
200.26 	(13) the name of the extra attendant when an extra attendant is used to provide special 
200.27 	transportation service; and
200.28 	(14) the documentation indicating the method that was used to determine the most direct 
200.29 	route.
201.1 	(c) In determining whether the commissioner will seek recovery, the documentation 
201.2 	requirements in this section apply retroactively to audit findings beginning January 1, 2020, 
201.3 	and to all audit findings thereafter.
201.4 	(d) Effective January 1, 2027, or upon federal approval, whichever is later, records that 
201.5 	comply with section 256B.073 may be used to meet the requirements of this subdivision if 
201.6 	all required elements are included in the record.

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

201.8 	Sec. 5. Minnesota Statutes 2024, section 256B.073, subdivision 1, is amended to read:
201.9 		Subdivision 1.Documentation; establishment and operation. The commissioner of 
201.10 	human services shall establish implementation requirements and standards for and maintain 
201.11 	the requirements and standards for the ongoing operation of electronic visit verification to 
201.12 	comply with the 21st Century Cures Act, Public Law 114-255. Within available 
201.13 	appropriations, the commissioner shall take steps to comply with the electronic visit 
201.14 	verification requirements in the 21st Century Cures Act, Public Law 114-255.

201.15 	Sec. 6. Minnesota Statutes 2024, section 256B.073, subdivision 2, is amended to read:
201.16 		Subd. 2.Definitions. (a) For purposes of this section, the terms in this subdivision have 
201.17 	the meanings given them.
201.18 	(b) "Data aggregator" means the entity designated by the commissioner to collect, store, 
201.19 	and transmit electronic visit verification data from providers and third-party systems to the 
201.20 	commissioner in accordance with the standards and requirements established under this 
201.21 	section.
201.22 	(b) (c) "Electronic visit verification" or "EVV" means the electronic documentation of 
201.23 	the process required under United States Code, title 42, section 1396b(l), and this section 
201.24 	used to electronically verify:
201.25 	(1) type of service performed;
201.26 	(2) individual receiving the service;
201.27 	(3) date of the service;
201.28 	(4) location of the service delivery;
201.29 	(5) individual providing the service; and
201.30 	(6) time the service begins and ends.
202.1 	(d) "Electronic visit verification data" means information collected through an electronic 
202.2 	visit verification system, including data elements required under United States Code, title 
202.3 	42, section 1396b(l), and any additional data elements specified by the commissioner under 
202.4 	this section.
202.5 	(c) (e) "Electronic visit verification system" means a system that provides electronic 
202.6 	verification of servicesused to collect, verify, and transmit EVV data to the commissioner 
202.7 	or the commissioner's designated data aggregator that complies with the 21st Century Cures 
202.8 	Act, Public Law 114-255, and the requirements of subdivision 3.
202.9 	(f) "Electronic visit verification vendor" means any entity that develops, provides, or 
202.10 	supports an electronic visit verification system, including the state-provided vendor and 
202.11 	any third-party vendor.
202.12 	(g) "Financial management services provider" means an entity enrolled with the 
202.13 	commissioner to provide financial management services under section 256B.85 or other 
202.14 	applicable law and responsible for fiscal, payroll, and reporting functions on behalf of 
202.15 	participant employers.
202.16 	(h) "Individual" means a person who receives services subject to electronic visit 
202.17 	verification under the medical assistance program.
202.18 	(i) "Managed care organization" means a public or private organization that contracts 
202.19 	with the commissioner under section 256B.69 or other applicable law to deliver health care 
202.20 	services to individuals eligible for medical assistance or MinnesotaCare.
202.21 	(j) "Provider" means an individual or organization that meets one or more of the following 
202.22 	conditions:
202.23 	(1) is enrolled as a Minnesota health care programs provider;
202.24 	(2) provides services through a managed care organization under contract with the 
202.25 	commissioner under section 256B.69;
202.26 	(3) is a financial management services provider; or
202.27 	(4) is a participant employer under section 256B.85, subdivision 7, or an employer of 
202.28 	record directing services under section 256B.49, subdivision 16.
202.29 	(d)(k) "Service" means one of the following:
202.30 	(1) personal care assistance services as defined in section 256B.0625, subdivision 19a, 
202.31 	and provided according to section 256B.0659;
202.32 	(2) community first services and supports under section 256B.85;
203.1 	(3) home health services under section 256B.0625, subdivision 6a; or
203.2 	(4) all unit-based services delivered by a provider that is a provider type designated 
203.3 	high-risk by the commissioner based on the criteria and standards used to designate Medicare 
203.4 	providers in Code of Federal Regulations, title 42, section 424.518;
203.5 	(5) unit-based services that are designated high-risk by the commissioner; or
203.6 	(4) (6) other medical supplies and equipment or home and community-based services 
203.7 	that are required to be electronically verified by the 21st Century Cures Act, Public Law 
203.8 	114-255.
203.9 	(l) "State-provided electronic visit verification system" means the electronic visit 
203.10 	verification system made available by the commissioner to providers at no cost for services 
203.11 	subject to federal electronic visit verification requirements.
203.12 	(m) "Third-party electronic visit verification system" means an electronic visit verification 
203.13 	system purchased or operated by a provider or vendor other than the state-provided system 
203.14 	designated by the commissioner.
203.15 	(n) "Verification method" means the electronic process used to capture and verify visit 
203.16 	information, including telephone, fixed visit verification devices, or mobile applications, 
203.17 	as approved by the commissioner.
203.18 	(o) "Visit" means a single occurrence of service delivery subject to electronic visit 
203.19 	verification.
203.20 	(p) "Worker" means an individual who provides personal care assistance services, 
203.21 	community first services and supports, home health services, consumer-directed community 
203.22 	supports, or other services identified by the commissioner as subject to electronic visit 
203.23 	verification.

203.24 	Sec. 7. Minnesota Statutes 2024, section 256B.073, subdivision 3, is amended to read:
203.25 		Subd. 3.Requirements. (a) In developing implementation requirements foradministering 
203.26 	electronic visit verification, the commissioner shallmust ensure that the system and related 
203.27 	requirements:
203.28 	(1) are minimally administratively and financially burdensome to a provider reasonable 
203.29 	for providers;
203.30 	(2) are minimally burdensomesupport continued access to theservices and are designed 
203.31 	to avoid disruption to service recipient and the least disruptive to the service recipient in 
203.32 	receiving and maintaining allowed services delivery or receipt;
204.1 	(3) consider existing best practices and use of electronic visit verification;
204.2 	(4) are conducted according to all state and federal laws;
204.3 	(5) are effective methods for preventing fraud when balanced against the requirements 
204.4 	of clauses (1) and (2); and
204.5 	(6) are consistent with the Department of Human Services' policies related to covered 
204.6 	services, flexibility of service use, and quality assurance.
204.7 	(b) The commissioner shallmust make training and guidance available to providers on 
204.8 	the electronic visit verification system requirements and system use.
204.9 	(c) The commissioner shallmust establish baseline measurements related to preventing 
204.10 	fraud and establish measures to determine the effect of electronic visit verification 
204.11 	requirements on program integrity.
204.12 	(d) The commissioner shallmust make a state-selected electronic visit verification system 
204.13 	available to providers of services.
204.14 	(e) The commissioner shallmust make available and publish on the agency website the 
204.15 	name and contact information for the vendor of the state-selected electronic visit verification 
204.16 	system and the other vendors that offer alternative electronic visit verification systems. The 
204.17 	information provided must state that the state-selected electronic visit verification system 
204.18 	is offered at no cost to the provider of services and that the provider may choose an alternative 
204.19 	system that may be at a cost to the provider.
204.20 	(f) The commissioner may establish implementation dates and implementation schedules 
204.21 	for services or system functions subject to electronic visit verification under this section, 
204.22 	including but not limited to the phased addition of new services, verification methods, or 
204.23 	technical requirements.
204.24 	(g) The commissioner may waive the requirements of this section for any service 
204.25 	component or setting when the application of electronic visit verification is contrary to 
204.26 	paragraph (a).

204.27 	Sec. 8. Minnesota Statutes 2024, section 256B.073, is amended by adding a subdivision 
204.28 	to read:
204.29 		Subd. 4a.Electronic visit verification system options. (a) A provider must use an 
204.30 	electronic visit verification system that complies with the requirements established by the 
204.31 	commissioner. A provider may use either the state-provided system or a third-party system. 
205.1 	All systems used for compliance must provide data to the commissioner in the format and 
205.2 	frequency required by the commissioner.
205.3 	(b) The commissioner must make a state-provided electronic visit verification system 
205.4 	available at no cost to providers of services. The commissioner must provide training on 
205.5 	the system to all providers.
205.6 	(c) The commissioner must allow providers of services to utilize a third-party electronic 
205.7 	visit verification system that the commissioner determines meets the requirements of this 
205.8 	section.
205.9 	(d) A provider using a third-party electronic visit verification system that meets all 
205.10 	technical specifications and federal and state laws must:
205.11 	(1) collect and submit all data for each visit to the commissioner, including but not 
205.12 	limited to manual entries;
205.13 	(2) maintain compliance identified by the commissioner, including but not limited to 
205.14 	incorporating into the system any changes in data requirements that must be transmitted to 
205.15 	the state EVV system; and
205.16 	(3) integrate the system with the state's designated data aggregator to accurately send 
205.17 	data.
205.18 	(e) The state-designated data aggregator must be available at no cost to a provider for 
205.19 	purposes of transmitting electronic visit verification data from approved third-party systems 
205.20 	to the commissioner. Any costs associated with the development and use of a third-party 
205.21 	system are the responsibility of the provider.
205.22 	(f) If a provider is unable to integrate a third-party system with the designated state 
205.23 	aggregator, the provider must use the state EVV system.
205.24 	(g) The commissioner must provide training on reviewing and correcting imported data 
205.25 	in the state's designated data aggregator to providers.

205.26 	Sec. 9. Minnesota Statutes 2024, section 256B.073, is amended by adding a subdivision 
205.27 	to read:
205.28 		Subd. 4b.Provider responsibilities. A provider must:
205.29 	(1) use an electronic visit verification system that meets all technical and data submission 
205.30 	requirements established by the commissioner;
206.1 	(2) enroll with the state-provided electronic visit verification system or the commissioner's 
206.2 	designated data aggregator, as applicable;
206.3 	(3) provide all information requested by the commissioner for enrollment, access, and 
206.4 	data submission and ensure that such information remains accurate and up to date;
206.5 	(4) maintain records for each individual receiving services subject to electronic visit 
206.6 	verification, including but not limited to all required data elements;
206.7 	(5) maintain a current list of workers providing services subject to electronic visit 
206.8 	verification to individuals receiving services under medical assistance;
206.9 	(6) provide the commissioner and any managed care organization under contract with 
206.10 	the commissioner under section 256B.69 with immediate, direct, and on-site or remote 
206.11 	access to the electronic visit verification system;
206.12 	(7) at the request of the commissioner or a managed care organization, allow review or 
206.13 	copying of electronic visit verification documentation at no cost;
206.14 	(8) ensure that electronic visit verification systems and related processes meet accessibility 
206.15 	and confidentiality requirements under state and federal law;
206.16 	(9) comply with all policies, procedures, and technical specifications issued by the 
206.17 	commissioner under this section; and
206.18 	(10) ensure that workers, participants, and other individuals using electronic visit 
206.19 	verification are trained and comply with all documentation and data entry requirements 
206.20 	established by the commissioner.

206.21 	Sec. 10. Minnesota Statutes 2024, section 256B.073, subdivision 5, is amended to read:
206.22 		Subd. 5.Vendor requirements. (a) The vendor of the electronic visit verification system 
206.23 	selected by the commissioner and the vendor's affiliate must comply with the requirements 
206.24 	of this subdivision.
206.25 	(b) The vendor of the state-selectedstate-provided electronic visit verification system 
206.26 	and the vendor's affiliate must:
206.27 	(1) notify the provider of services that the provider may choose the state-selected
206.28 	state-provided electronic visit verification system at no cost to the provider;
206.29 	(2) offer the state-selectedstate-provided electronic visit verification system to the 
206.30 	provider of services prior to offering any fee-based electronic visit verification system;
207.1 	(3) notify the provider of services that the provider may choose any fee-based electronic 
207.2 	visit verification system prior to offering the vendor's or its affiliate's fee-based electronic 
207.3 	visit verification system; and
207.4 	(4) when offering the state-selectedstate-provided electronic visit verification system, 
207.5 	clearly differentiate between the state-selectedstate-provided electronic visit verification 
207.6 	system and the vendor's or its affiliate's alternative fee-based system.
207.7 	(c) The vendor of the state-selectedstate-provided electronic visit verification system 
207.8 	and the vendor's affiliate must not use state data that are not available to other vendors of 
207.9 	electronic visit verification systems to promote or sell the vendor's or its affiliate's alternative 
207.10 	electronic visit verification system.
207.11 	(d) Upon request from the provider, the vendor of the state-selectedstate-provided 
207.12 	electronic visit verification system must provide proof of compliance with the requirements 
207.13 	of paragraph (b).
207.14 	(e) An agreement between the vendor of the state-selectedstate-provided electronic visit 
207.15 	verification system or its affiliate and a provider of services for an electronic visit verification 
207.16 	system that is not the state-selectedstate-provided system entered into on or after July 1, 
207.17 	2023, is subject to immediate termination by the provider if the vendor violates any of the 
207.18 	requirements of paragraph (b).

207.19 	Sec. 11. Minnesota Statutes 2024, section 256B.073, is amended by adding a subdivision 
207.20 	to read:
207.21 		Subd. 6.Data and documentation. (a) A provider must submit electronic visit 
207.22 	verification data to the commissioner or the commissioner's designated data aggregator in 
207.23 	accordance with the technical standards, format, and frequency established under this section. 
207.24 	The commissioner may use integrated electronic visit verification data for oversight, quality 
207.25 	assurance, and program integrity purposes consistent with state and federal law.
207.26 	(b) The commissioner and managed care organizations must use electronic visit 
207.27 	verification data to validate claims for payment under medical assistance. Claims that cannot 
207.28 	be validated in accordance with electronic visit verification requirements may be subject 
207.29 	to actions by the commissioner as authorized under state and federal law, including actions 
207.30 	related to payment, program integrity, or provider compliance.
207.31 	(c) A provider must record all required electronic visit verification data at the time of 
207.32 	service delivery using an approved verification method. To be compliant with electronic 
208.1 	visit verification requirements, a provider must document a visit with all required data 
208.2 	elements recorded at the time of service delivery.
208.3 	(d) A manual visit is a visit:
208.4 	(1) entered administratively and not by the caregiver at the time of service delivery; or
208.5 	(2) where data elements are edited after the time of service delivery.
208.6 	(e) A manual visit does not comply with electronic visit verification requirements. A 
208.7 	manual visit must be confirmed and verified according to processes established by the 
208.8 	commissioner before being used to validate or support a claim for payment.
208.9 	(f) A worker providing services subject to electronic visit verification must record the 
208.10 	start and end times of each visit at the time the service is delivered using an approved 
208.11 	verification method. A worker must complete and verify all time documentation, including 
208.12 	but not limited to verification of service type, date, and duration, on the date the service 
208.13 	occurs and be consistent with documentation requirements under sections 256B.0625, 
208.14 	subdivision 6a; 256B.0659, subdivision 12; 256B.49, subdivision 16; and 256B.85, 
208.15 	subdivision 15. A provider of services must maintain documentation demonstrating 
208.16 	compliance with this subdivision and make the documentation available to the commissioner 
208.17 	or a managed care organization under contract with the commissioner under section 256B.69 
208.18 	upon request.

208.19 	Sec. 12. Minnesota Statutes 2024, section 256B.073, is amended by adding a subdivision 
208.20 	to read:
208.21 		Subd. 7.Third-party system responsibilities. (a) This section is effective for Early 
208.22 	Intensive Developmental and Behavioral Intervention services beginning July 1, 2027, or 
208.23 	upon federal approval, whichever is later. This section is effective for all other services 
208.24 	subject to this subdivision beginning January 1, 2027, or upon federal approval, whichever 
208.25 	is later.
208.26 	(b) A provider that uses a third-party electronic visit verification system must ensure 
208.27 	that the system meets all technical, functional, and data-exchange requirements established 
208.28 	by the commissioner and transmits data to the commissioner or the commissioner's designated 
208.29 	data aggregator in the format and frequency required by the commissioner.
208.30 	(c) A third-party electronic visit verification vendor must:
208.31 	(1) comply with all technical, contractual, privacy, and security standards established 
208.32 	by the commissioner;
209.1 	(2) not use or disclose state data for any purpose other than fulfilling the requirements 
209.2 	of this section or federal law;
209.3 	(3) provide the commissioner access to system documentation, data mapping, and audit 
209.4 	records upon request; and
209.5 	(4) immediately report to the commissioner any data transmission failure, breach, or 
209.6 	interruption affecting the state's ability to receive required electronic visit verification data.
209.7 	(d) A provider remains responsible for ensuring compliance with this section even when 
209.8 	using a third-party electronic visit verification system.
209.9 	(e) The third-party vendor must ensure training on the system is available to providers.

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

209.11 	Sec. 13. Minnesota Statutes 2025 Supplement, section 256B.0911, subdivision 14, is 
209.12 	amended to read:
209.13 		Subd. 14.Use of MnCHOICES certified assessors required. (a) Each lead agency 
209.14 	shall use MnCHOICES certified assessors who have completed MnCHOICES training and 
209.15 	the certification process determined by the commissioner in subdivision 13.
209.16 	(b) Each lead agency must ensure that the lead agency has sufficient numbers of certified 
209.17 	assessors to provide long-term consultation assessment and support planning within the 
209.18 	timelines and parameters of the service.
209.19 	(c) A lead agency may choose, according to departmental policies, to contract with a 
209.20 	qualified, certified assessor to conduct assessments and reassessments on behalf of the lead 
209.21 	agency.
209.22 	(d) Tribes and health plans under contract with the commissioner must provide long-term 
209.23 	care consultation services as specified in the contract.
209.24 	(e) A lead agency must provide the commissioner with an administrative contact for 
209.25 	communication purposes.
209.26 	(f) A lead agency may contract under this subdivision with any hospital licensed under 
209.27 	sections 144.50 to 144.56 to conduct assessments of patients in the hospital on behalf of 
209.28 	the lead agency when the lead agency has failed to meet its obligations under subdivision 
209.29 	17. The contracted assessment must be conducted by a hospital employee who is a qualified, 
209.30 	certified assessor. The hospital employees who perform assessments under the contract 
209.31 	between the hospital and the lead agency may perform assessments in addition to other 
209.32 	duties assigned to the employee by the hospital, except the hospital employees who perform 
210.1 	the assessments under contract with the lead agency must not perform any waiver-related 
210.2 	tasks other than assessments. Hospitals are not eligible for reimbursement under subdivision 
210.3 	33. The lead agency that enters into a contract with a hospital under this paragraph is 
210.4 	responsible for oversight, compliance, and quality assurance for all assessments performed 
210.5 	under the contract.
210.6 	(g) The commissioner must employ certified assessors within the department to conduct 
210.7 	assessments on behalf of lead agencies under conditions and circumstances determined by 
210.8 	the commissioner. Certified assessors employed by the department may conduct assessments 
210.9 	in addition to other duties as assigned, except the certified assessors employed by the 
210.10 	department must not perform any responsibilities of a lead agency described in this section 
210.11 	other than assessments. Nothing in this paragraph creates an obligation for the department 
210.12 	to provide the department's certified assessors to conduct assessments on behalf of a lead 
210.13 	agency.

210.14 	Sec. 14. Minnesota Statutes 2024, section 256B.0911, subdivision 32, is amended to read:
210.15 		Subd. 32.Administrative activity. (a) The commissioner shall:
210.16 	(1) streamline the processes, including timelines for when assessments need to be 
210.17 	completed;
210.18 	(2) provide the services in this section; and
210.19 	(3) implement integrated solutions to automate the business processes to the extent 
210.20 	necessary for support plan approval, reimbursement, program planning, evaluation, and 
210.21 	policy development.; and
210.22 	(4) grant limited role-based access to a person's support plan in the MnCHOICES system 
210.23 	to home and community-based service providers who have been designated as a provider 
210.24 	for that person by a lead agency for the purpose of signing the person's support plan 
210.25 	electronically and demonstrating that the provider has reviewed, understood, and agrees to 
210.26 	deliver services as outlined in the plan.
210.27 	(b) The commissioner shall work with lead agencies responsible for conducting long-term 
210.28 	care consultation services to:
210.29 	(1) modify the MnCHOICES application and assessment policies to create efficiencies 
210.30 	while ensuring federal compliance with medical assistance and long-term services and 
210.31 	supports eligibility criteria; and
211.1 	(2) develop a set of measurable benchmarks sufficient to demonstrate quarterly 
211.2 	improvement in the average time per assessment and other mutually agreed upon measures 
211.3 	of increasing efficiency.
211.4 	(c) The commissioner shall collect data on the benchmarks developed under paragraph 
211.5 	(b) and provide to the lead agencies an annual trend analysis of the data in order to 
211.6 	demonstrate the commissioner's compliance with the requirements of this subdivision.

211.7 	Sec. 15. Minnesota Statutes 2024, section 256B.0949, is amended by adding a subdivision 
211.8 	to read:
211.9 		Subd. 19.Billing limits. (a) Effective July 1, 2027, or upon federal approval, whichever 
211.10 	is later, the following billing limits apply to early intensive development and behavioral 
211.11 	intervention services:
211.12 	(1) intensive services: 40 hours per week per recipient;
211.13 	(2) travel: two hours per day per recipient;
211.14 	(3) observation and direction: 20 hours per week per recipient; and
211.15 	(4) individual treatment and planning: 300 units per year per recipient.
211.16 	(b) The commissioner must grant exceptions to the billing limits under paragraph (a) 
211.17 	when services in excess of the billing limits are determined to be medically necessary. A 
211.18 	provider must apply to the commissioner for an exception on the forms and in the manner 
211.19 	prescribed by the commissioner. A determination under this paragraph is final and not 
211.20 	subject to appeal.

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

211.22 	Sec. 16. Minnesota Statutes 2024, section 256B.4905, subdivision 11, is amended to read:
211.23 		Subd. 11.Informed choice in technology policy. It is the policy of this state that all 
211.24 	adults who have disabilities and children who have disabilities:
211.25 	(1) can use assistive technology, remote supports, or a combination of both to enhance 
211.26 	the adult's or child's independence and quality of life; and
211.27 	(2) have the right, at least annually, to make an informed choice about the adult's or 
211.28 	child's use of assistive technology and remote supports when permitted under the individual's 
211.29 	federally approved waiver plan, service authorization, and applicable service standards.

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

212.1 	Sec. 17. Minnesota Statutes 2024, section 256B.4905, subdivision 12, is amended to read:
212.2 		Subd. 12.Informed choice and technology prioritization in implementation for 
212.3 	disability waiver services. (a) The commissioner of human services shall ensure that:
212.4 	(1) disability waivers under sections 256B.092 and 256B.49 support the presumption 
212.5 	that all adults who have disabilities and children who have disabilities may use assistive 
212.6 	technology, remote supports, or both to enhance the adult's or child's independence and 
212.7 	quality of life; and
212.8 	(2) each individual accessing waiver services is offered, after an informed 
212.9 	decision-making process and during a person-centered planning process, the opportunity 
212.10 	to choose assistive technology, remote support, or both prior to the commissioner offering 
212.11 	or reauthorizing services that utilize direct support staff to ensure equitable access.; and
212.12 	(3) policies and procedures related to the use of technology, including but not limited 
212.13 	to remote support, promote informed choice and protect the health and safety of individuals 
212.14 	receiving services consistent with federal law and the terms of approved waiver plans.
212.15 	(b) Nothing in this subdivision authorizes the use of remote support as a method of 
212.16 	service delivery unless expressly permitted under the applicable service definition, waiver 
212.17 	plan, and service standards approved by the Centers for Medicare and Medicaid Services.

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

212.19 	Sec. 18. Minnesota Statutes 2024, section 256B.4912, is amended by adding a subdivision 
212.20 	to read:
212.21 		Subd. 17.Billing limits. (a) The limits in this subdivision establish the maximum amounts 
212.22 	of authorized units for each service within a service day, week, or month.
212.23 	(b) Effective January 1, 2027, or upon federal approval, whichever is later, the following 
212.24 	billing limits apply:
212.25 	(1) adult companion services: up to six hours per day per recipient with a maximum of 
212.26 	963 hours annually;
212.27 	(2) chore services: up to six hours per week per recipient for 15-minute units;
212.28 	(3) homemaker services, cleaning: up to 16 hours per week per recipient;
212.29 	(4) homemaker services, home management: up to 16 hours per week per recipient;
212.30 	(5) day support services: up to eight hours per day per recipient;
213.1 	(6) family training and counseling under a disability waiver: up to two hours per week 
213.2 	per recipient or family unit;
213.3 	(7) community residential services one-to-one staffing: the maximum daily hours 
213.4 	permitted under the applicable service tier under section 256B.4914, as published by the 
213.5 	commissioner;
213.6 	(8) independent living skills: up to six hours per day per recipient;
213.7 	(9) individualized home supports with family training: six total hours per day;
213.8 	(10) individualized home supports with training: up to 182.5 hours per month;
213.9 	(11) home-delivered meals: up to two meals per day per recipient;
213.10 	(12) individualized home supports: up to 16 hours per day per recipient, inclusive of all 
213.11 	staffing ratios;
213.12 	(13) personal emergency response system: one unit per month per recipient, inclusive 
213.13 	of installation, monitoring, and maintenance;
213.14 	(14) respite services provided in the recipient's home: 30 consecutive days per occurrence;
213.15 	(15) overnight supervision services: ten hours per day per recipient, with no more than 
213.16 	eight hours asleep; and
213.17 	(16) transportation services: 28 one-way trips per week per participant.
213.18 	(c) For personal emergency response system billing units under paragraph (b), clause 
213.19 	(13), lead agency staff must end service lines for any inactive providers to prevent duplicate 
213.20 	billing.
213.21 	(d) The limits in this subdivision do not limit a person's use of other waiver services. 
213.22 	Billing limits under this subdivision apply only to the individual service listed and do not 
213.23 	prohibit the recipient from accessing other services for which they are eligible on the same 
213.24 	day, week, or month, subject to other applicable requirements.

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

213.26 	Sec. 19. Minnesota Statutes 2024, section 256B.4914, subdivision 6d, is amended to read:
213.27 		Subd. 6d.Payment for customized living. (a) The payment methodology for customized 
213.28 	living and 24-hour customized living must be the customized living tool. The commissioner 
213.29 	shall revise the customized living tool to reflect the services and activities unique to 
213.30 	disability-related recipient needs and adjust for regional differences in the cost of providing 
213.31 	services.
214.1 	(b) The rate adjustments described in section 256S.205 do not apply to rates paid under 
214.2 	this section.
214.3 	(c) Customized living and 24-hour customized living rates determined under this section 
214.4 	shall not include more than 24 hours of support in a daily unit.
214.5 	(d) The commissioner shall establish the following acuity-based customized living tool 
214.6 	input limits, based on case mix, for customized living and 24-hour customized living rates 
214.7 	determined under this section:
214.8 	(1) no more than two hours of mental health management per day for people assessed 
214.9 	for case mixes A, D, and G;
214.10 	(2) no more than four hours of activities of daily living assistance per day for people 
214.11 	assessed for case mix B; and
214.12 	(3) no more than six hours of activities of daily living assistance per day for people 
214.13 	assessed for case mix D.
214.14 	(e) Customized living monthly service rate limits must align with monthly service rate 
214.15 	limits determined under section 256S.202, subdivisions 1 and 2.

214.16 	Sec. 20. Minnesota Statutes 2024, section 256B.4914, is amended by adding a subdivision 
214.17 	to read:
214.18 		Subd. 10e.Documentation of staffing; auditing and rate review. (a) Effective for 
214.19 	services provided on or after January 1, 2029, a provider enrolled to provide residential 
214.20 	support services under subdivision 6 must maintain documentation of direct staffing hours 
214.21 	provided to each person receiving services, including but not limited to documentation 
214.22 	identifying:
214.23 	(1) the name, role, and unique identifier for each staff person who provided services to 
214.24 	match records to payroll, time and attendance systems, and any other source documentation;
214.25 	(2) the date services were provided;
214.26 	(3) the total number of hours of direct support provided;
214.27 	(4) awake overnight staffing hours provided, if applicable;
214.28 	(5) asleep overnight staffing hours provided, if applicable; and
214.29 	(6) any other staffing information required by the commissioner.
214.30 	(b) A provider must maintain documentation in a manner and format determined by the 
214.31 	commissioner for at least six years. If a provider changes payroll vendors, merges operations, 
215.1 	or changes staffing identifiers, the provider must maintain a documented link between prior 
215.2 	and current staffing identifiers sufficient to allow tracking of hours worked, turnover, and 
215.3 	role classification for each staff person.
215.4 	(c) A provider must submit the documentation required under paragraph (a) to the 
215.5 	commissioner annually, in a manner and format determined by the commissioner. The 
215.6 	commissioner must establish multiple submission windows throughout the calendar year 
215.7 	and may assign providers to a submission window for administrative efficiency and system 
215.8 	capacity. Documentation must reflect staffing provided during the prior calendar year and 
215.9 	must be submitted no later than the final business day of the provider's assigned submission 
215.10 	window. The commissioner may conduct random or targeted validations and audits of 
215.11 	submitted data and may require supplemental documentation as necessary to verify accuracy 
215.12 	and compliance.
215.13 	(d) The commissioner must conduct periodic analysis of documentation submitted under 
215.14 	this subdivision and may validate staffing data through random audits or other verification 
215.15 	methods.
215.16 	(e) Based on the analysis under paragraph (d), the commissioner may provide 
215.17 	recommendations to lead agencies regarding modifications to the rate of a person receiving 
215.18 	services, including increases or decreases necessary to align the rate with staffing provided 
215.19 	to the person as demonstrated by the submitted historical staffing documentation. 
215.20 	Recommendations must be based on the requirements of this section and applicable federal 
215.21 	and state requirements governing rate setting.
215.22 	(f) If a provider fails to submit documentation requested within the submission window 
215.23 	in paragraph (c), the commissioner must issue a written notice of noncompliance. If 
215.24 	documentation is not received within 60 days following the notice of noncompliance, the 
215.25 	commissioner may temporarily suspend payments to the provider until the required 
215.26 	documentation is submitted. The commissioner must make withheld payments to the provider 
215.27 	once the required documentation is received. If the noncompliance persists, the commissioner 
215.28 	may adjust future rate payments, require the provider to submit a corrective action plan, or 
215.29 	pursue other enforcement actions as authorized by law.
215.30 	(g) The commissioner must publish annual aggregate reports summarizing audit findings 
215.31 	and trends related to staffing provided under this section.

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

216.1 	Sec. 21. Minnesota Statutes 2024, section 256B.492, is amended by adding a subdivision 
216.2 	to read:
216.3 		Subd. 4.Integrated community supports setting approval moratorium and 
216.4 	exception. (a) For purposes of this subdivision, "integrated community supports setting" 
216.5 	means a multifamily housing building where a provider delivers integrated community 
216.6 	supports under section 245D.03, subdivision 1, paragraph (c), clause (8), and for which a 
216.7 	provider has a provider-controlled or provider-associated financial interest as defined under 
216.8 	section 245A.02, subdivision 10b.
216.9 	(b) The commissioner must not approve a new integrated community supports setting 
216.10 	or approve an expansion of an existing integrated community supports setting except as 
216.11 	provided in this subdivision.
216.12 	(c) The commissioner may approve an exception to the moratorium only when the 
216.13 	applicant demonstrates indirect control of the setting and compliance with:
216.14 	(1) the federal home and community-based services requirements under Code of Federal 
216.15 	Regulations, title 42, section 441.301(c);
216.16 	(2) the prohibition on the use of medical assistance money for room and board under 
216.17 	United States Code, title 42, section 1396n(c);
216.18 	(3) independent lease requirements consistent with chapter 504B; and
216.19 	(4) all documentation requirements under section 245D.12.
216.20 	(d) To approve an exception, the commissioner must determine that the lead agency has 
216.21 	requested the additional capacity to meet the specific disability-related needs of the person. 
216.22 	Priority must be given to geographic regions with insufficient integrated community supports 
216.23 	capacity based on statewide or regional needs determination processes.
216.24 	(e) A determination under this subdivision is final and not subject to appeal.

216.25 	EFFECTIVE DATE. This section is effective January 1, 2027.

216.26 	Sec. 22. Minnesota Statutes 2024, section 256S.20, is amended by adding a subdivision 
216.27 	to read:
216.28 		Subd. 6.Customized living and 24-hour customized living moratorium. (a) Except 
216.29 	as permitted in this subdivision, the commissioner must not authorize:
216.30 	(1) a new customized living setting or 24-hour customized living setting; or
217.1 	(2) a new provider enrollment to deliver customized living services or 24-hour customized 
217.2 	living services.
217.3 	(b) The commissioner may approve an exception to the moratorium only when the 
217.4 	commissioner determines the exception is necessary for:
217.5 	(1) a change of ownership at the same address;
217.6 	(2) continuity of care due to a provider closure, decertification, licensing action, or other 
217.7 	service disruption; or
217.8 	(3) compliance with federal law.
217.9 	(c) In determining whether to approve an exception to the moratorium, the commissioner 
217.10 	must consider the availability of services in the geographic area, a person's assessed needs 
217.11 	and informed choice, whether a less restrictive alternative is available, and the 
217.12 	recommendation of the lead agency.
217.13 	(d) A determination under this subdivision is final and not subject to appeal.

217.14 	EFFECTIVE DATE. This section is effective January 1, 2027.

217.15 	Sec. 23. Minnesota Statutes 2024, section 256S.21, is amended by adding a subdivision 
217.16 	to read:
217.17 		Subd. 4.Documentation of staffing; auditing and rate review for residential support 
217.18 	services. (a) For purposes of this subdivision, residential support services include 24-hour 
217.19 	customized living services, customized living services, family adult foster care, and corporate 
217.20 	adult foster care.
217.21 	(b) Effective January 1, 2029, a provider enrolled to provide residential support services 
217.22 	under this subdivision must maintain documentation of direct staffing hours provided to 
217.23 	each person receiving services, including but not limited to documentation identifying:
217.24 	(1) the name, role, and unique identifier for each staff person who provided services to 
217.25 	match records to payroll, time and attendance systems, and any other source documentation;
217.26 	(2) the date services were provided;
217.27 	(3) the total number of hours of direct support provided;
217.28 	(4) awake overnight staffing hours provided, if applicable;
217.29 	(5) asleep overnight staffing hours provided, if applicable; and
217.30 	(6) any other staffing information required by the commissioner.
218.1 	(c) A provider must maintain documentation in a manner and format determined by the 
218.2 	commissioner for at least six years. If a provider changes payroll vendors, merges operations, 
218.3 	or changes staffing identifiers, the provider must maintain a documented link between prior 
218.4 	and current staffing identifiers sufficient to allow tracking of hours worked, turnover, and 
218.5 	role classification for each staff person.
218.6 	(d) A provider must submit the documentation required under paragraph (b) to the 
218.7 	commissioner annually, in a manner and format determined by the commissioner. The 
218.8 	commissioner must establish multiple submission windows throughout the calendar year 
218.9 	and may assign providers to a submission window for administrative efficiency and system 
218.10 	capacity. Documentation must reflect staffing provided during the prior calendar year and 
218.11 	must be submitted no later than the final business day of the provider's assigned submission 
218.12 	window. The commissioner may conduct random or targeted validations and audits of 
218.13 	submitted data and may require supplemental documentation as necessary to verify accuracy 
218.14 	and compliance.
218.15 	(e) The commissioner must conduct periodic analysis of documentation submitted under 
218.16 	this subdivision and may validate staffing data through random audits or other verification 
218.17 	methods.
218.18 	(f) Based on the analysis under paragraph (e), the commissioner may provide 
218.19 	recommendations to lead agencies regarding modifications to the rate of the person receiving 
218.20 	services, including increases or decreases necessary to align the rate with staffing provided 
218.21 	to the person as demonstrated by the submitted historical staffing documentation. 
218.22 	Recommendations must be based on the requirements of this section and applicable federal 
218.23 	and state requirements governing rate setting.
218.24 	(g) If a provider fails to submit documentation requested within the submission window 
218.25 	under paragraph (d), the commissioner must issue a written notice of noncompliance. If 
218.26 	documentation is not received within 60 days following the notice of noncompliance, the 
218.27 	commissioner may temporarily suspend payments to the provider until the required 
218.28 	documentation is submitted. The commissioner must make withheld payments to the provider 
218.29 	once the required documentation is received. If the noncompliance persists, the commissioner 
218.30 	may adjust future rate payments, require the provider to submit a corrective action plan, or 
218.31 	pursue other enforcement actions as authorized by law.
218.32 	(h) The commissioner must publish annual aggregate reports summarizing audit findings 
218.33 	and trends related to staffing provided under this section.

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

219.1 	Sec. 24. MARKET RATE STUDY FOR HOME AND COMMUNITY-BASED 
219.2 	SERVICES.
 219.3 	(a) The commissioner of human services must conduct a market rate study to evaluate 
219.4 	the adequacy, sustainability, and equity of payment rates for specific home and 
219.5 	community-based services under the home and community-based services waivers authorized 
219.6 	under Minnesota Statutes, sections 256B.092 and 256B.49.
219.7 	(b) The study must include, at a minimum, an analysis of the following:
219.8 	(1) employment support services delivered in remote or virtual settings;
219.9 	(2) 24-hour emergency assistance;
219.10 	(3) assistive technology;
219.11 	(4) environmental accessibility adaptations;
219.12 	(5) chore services;
219.13 	(6) transitional services;
219.14 	(7) independent living skills training;
219.15 	(8) specialist services, including positive support services and orientation and mobility 
219.16 	services; and
219.17 	(9) administrative fees charged by enrolled providers or vendors for services or purchased 
219.18 	goods.
219.19 	(c) In planning and conducting the market rate study, the commissioner must consult 
219.20 	with interested parties, including but not limited to service providers, people with disabilities, 
219.21 	lead agencies, Tribal Nations, culturally specific and community-based providers, and 
219.22 	disability advocacy organizations. The consultation process must be designed to ensure 
219.23 	meaningful participation from providers in greater Minnesota and from providers serving 
219.24 	communities of color and Tribal Nations.
219.25 	(d) In conducting the study, the commissioner must analyze provider costs, workforce 
219.26 	availability, wage competitiveness, regional market conditions, inflationary impacts, and 
219.27 	access issues. The commissioner must also evaluate whether current reimbursement 
219.28 	methodologies reflect actual costs of providing services and support long-term access to 
219.29 	qualified providers.
219.30 	(e) By February 15, 2027, the commissioner must submit a report with findings and 
219.31 	recommendations, including but not limited to any proposed statutory changes, to the chairs 
220.1 	and ranking minority members of the legislative committees with jurisdiction over health 
220.2 	and human services policy and finance.

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

220.4 	Sec. 25. WAIVER CASE MANAGEMENT ADVISORY WORKING GROUP.
 220.5 		Subdivision 1.Establishment; purpose. The commissioner of human services shall 
220.6 	convene a waiver case management advisory working group. The purpose of the working 
220.7 	group is to evaluate and make recommendations regarding the quality, workforce 
220.8 	sustainability, accountability, and long-term stability of home and community-based waiver 
220.9 	case management services provided under Minnesota Statutes, sections 256B.0913, 256B.092, 
220.10 	256B.0922, and 256B.49, and chapter 256S.
220.11 		Subd. 2.Membership. The commissioner shall appoint members representing diverse 
220.12 	geographic regions of the state, including metropolitan and greater Minnesota areas, with 
220.13 	at least 30 percent of the members living or working outside the seven-county metropolitan 
220.14 	area and including:
220.15 	(1) representatives of the Department of Human Services;
220.16 	(2) lead agencies, as defined in Minnesota Statutes, section 256B.0911, subdivision 10;
220.17 	(3) contracted waiver case management providers;
220.18 	(4) waiver case managers with current direct service responsibilities;
220.19 	(5) individuals receiving waiver services or their family members or advocates;
220.20 	(6) representatives of disability advocacy organizations;
220.21 	(7) representatives of the Minnesota Disability Law Center;
220.22 	(8) representatives of culturally specific or Tribal communities; and
220.23 	(9) workforce representatives with experience in human services.
220.24 		Subd. 3.Compensation; expenses. Members of the working group may receive 
220.25 	compensation and expense reimbursement as provided in Minnesota Statutes, section 15.059, 
220.26 	subdivision 3.
220.27 		Subd. 4.Meetings; administrative support. (a) The first meeting of the working group 
220.28 	must be convened no later than August 1, 2026. The working group must meet at least 
220.29 	monthly. Meetings are subject to Minnesota Statutes, chapter 13D. The working group may 
220.30 	meet by telephone or interactive technology consistent with Minnesota Statutes, section 
220.31 	13D.015.
221.1 	(b) The Department of Human Services shall provide staff and administrative support 
221.2 	to convene the working group, facilitate working group meetings, and prepare the final 
221.3 	report.
221.4 		Subd. 5.Duties. The working group shall:
221.5 	(1) evaluate the impact of current funding levels, workforce capacity, administrative 
221.6 	requirements, and caseload expectations on service delivery and quality outcomes;
221.7 	(2) examine accountability and oversight mechanisms and grievance processes across 
221.8 	delivery models;
221.9 	(3) review available data related to workforce vacancies, turnover, compensation, and 
221.10 	service access;
221.11 	(4) identify barriers to maintaining high-quality and culturally responsive case 
221.12 	management services;
221.13 	(5) examine case management training requirements and core competencies;
221.14 	(6) evaluate client transfer and service continuity processes; and
221.15 	(7) develop recommendations, including potential legislative or administrative changes, 
221.16 	to ensure a stable, accountable, and high-quality waiver case management system that 
221.17 	supports person-centered planning and informed choice.
221.18 		Subd. 6.Report. By September 1, 2027, the commissioner shall submit a report 
221.19 	summarizing the working group's findings and recommendations to the chairs and ranking 
221.20 	minority members of the legislative committees with jurisdiction over human services policy 
221.21 	and finance.
221.22 		Subd. 7.Expiration. The working group expires upon submission of the report required 
221.23 	under subdivision 6.

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

221.25 	Sec. 26. DIRECTION TO COMMISSIONER; HCBS WAIVER CASE 
221.26 	MANAGEMENT EVALUATION AND REPORT.
 221.27 	(a) The commissioner of human services must evaluate reimbursement rates and lead 
221.28 	agency duties associated with home and community-based services (HCBS) case management 
221.29 	under Minnesota Statutes, sections 256B.092 and 256B.49, and chapter 256S. The 
221.30 	commissioner must develop an updated payment methodology for waiver case management 
222.1 	that reasonably covers the cost to provide high-quality, person-centered, and culturally 
222.2 	responsive case management services. The report must, at a minimum, include:
222.3 	(1) an evaluation of costs and workforce pressures that impact the delivery of case 
222.4 	management services;
222.5 	(2) an evaluation of costs to provide culturally responsive case management services;
222.6 	(3) an evaluation of current reimbursement rates, methodologies, and the extent to which 
222.7 	rates cover costs to provide services and attract and retain case managers;
222.8 	(4) an evaluation of current caseload sizes and recommended best practices for caseload 
222.9 	and case mix;
222.10 	(5) identification and evaluation of the required professional qualifications, experience, 
222.11 	and training of case management professionals; and
222.12 	(6) recommended HCBS waiver rate methodology, specified cost components, weighted 
222.13 	values, and modeled rate frameworks.
222.14 	(b) The commissioner must consult with interested parties, including but not limited to 
222.15 	lead agencies, contracted case management services providers, individuals receiving services 
222.16 	and their families, advocacy organizations, and relevant experts. The commissioner must 
222.17 	consider the recommendations of the waiver case management advisory working group 
222.18 	under section 25 when developing recommendations under this section.
222.19 	(c) The commissioner may contract with rate experts to develop and model recommended 
222.20 	rates.
222.21 	(d) By December 15, 2028, the commissioner of human services must submit a report 
222.22 	to the chairs and ranking minority members of the legislative committees with jurisdiction 
222.23 	over health and human services with the findings and recommendations of the evaluation.

222.24 	EFFECTIVE DATE. This section is effective July 1, 2027.

222.25 	Sec. 27. INTEGRATED COMMUNITY SUPPORTS REFORM STUDY.
 222.26 		Subdivision 1.Review and evaluation. The commissioner of human services must 
222.27 	review the medical assistance integrated community supports (ICS) service provided under 
222.28 	the home and community-based waivers authorized under Minnesota Statutes, sections 
222.29 	256B.092 and 256B.49, and evaluate the need for statutory, regulatory, and programmatic 
222.30 	reforms. At a minimum, the evaluation must include:
223.1 	(1) an examination of current provider standards, service delivery models, and oversight 
223.2 	mechanisms applicable to ICS providers;
223.3 	(2) an assessment of the effectiveness of ICS in supporting individuals to live 
223.4 	independently in community settings, including outcomes related to service utilization and 
223.5 	health and safety;
223.6 	(3) a review of payment methodologies, including rate structures, administrative 
223.7 	components, and alignment with federal Medicaid requirements under home and 
223.8 	community-based services waivers and state plan authorities;
223.9 	(4) an environmental scan of comparable supportive housing and community-based 
223.10 	service models in other states, including best practices for program integrity, quality 
223.11 	assurance, and service coordination;
223.12 	(5) an assessment of program integrity risks, including billing practices and service 
223.13 	verification; and
223.14 	(6) identification of opportunities to improve coordination between ICS providers and 
223.15 	lead agencies.
223.16 		Subd. 2.Stakeholder consultation. The commissioner must consult with stakeholders 
223.17 	in conducting the review under this section. Stakeholders must include, at a minimum:
223.18 	(1) individuals who receive ICS services and self-advocates;
223.19 	(2) family members and caregivers of individuals who receive ICS services;
223.20 	(3) ICS providers;
223.21 	(4) counties and Tribal Nations serving as lead agencies; and
223.22 	(5) advocacy organizations representing people with disabilities.
223.23 		Subd. 3.Report. (a) The commissioner must develop recommendations for legislative 
223.24 	and administrative changes to strengthen the ICS program. Recommendations may include 
223.25 	but are not limited to:
223.26 	(1) establishing risk-based provider oversight and program integrity requirements;
223.27 	(2) clarifying allowable services and service limits consistent with federal Medicaid 
223.28 	requirements, including prohibitions on payment for room and board;
223.29 	(3) improving service verification, documentation, and accountability measures;
223.30 	(4) enhancing recipient protections, including person-centered planning and grievance 
223.31 	processes; and
224.1 	(5) aligning ICS with home and community-based services settings requirements under 
224.2 	Code of Federal Regulations, title 42, section 441.301.
224.3 	(b) The commissioner must submit a report to the chairs and ranking minority members 
224.4 	of the legislative committees with jurisdiction over health and human services policy and 
224.5 	finance by September 1, 2027. The report must include findings, stakeholder feedback, and 
224.6 	specific legislative proposals related to ICS reform.

224.7 	Sec. 28. MNCHOICES REDESIGN WORKING GROUP.
 224.8 		Subdivision 1.Establishment. The commissioner of human services shall convene a 
224.9 	MnCHOICES redesign working group to develop recommendations related to state provision 
224.10 	of MnCHOICES assessments under Minnesota Statutes, section 256B.0911, subdivision 
224.11 	14, paragraph (g).
224.12 		Subd. 2.Membership. At a minimum, the working group must include the following 
224.13 	members:
224.14 	(1) two individuals receiving waiver services or the individuals' family members or 
224.15 	advocates, appointed by the commissioner in consultation with organizations representing 
224.16 	individuals with lived experience of disability and waiver services;
224.17 	(2) three county representatives, appointed by the Minnesota Association of County 
224.18 	Social Service Administrators, including;
224.19 	(i) at least one representative of a lead agency located in a metropolitan county, as defined 
224.20 	in Minnesota Statutes, section 473.121, subdivision 4; and
224.21 	(ii) at least two representatives of lead agencies located outside of a metropolitan county, 
224.22 	as defined in Minnesota Statutes, section 473.121, subdivision 4;
224.23 	(3) one staff member from the Minnesota Social Service Association, appointed by the 
224.24 	Minnesota Social Service Association;
224.25 	(4) at least three representatives from Tribal Nations, appointed by the commissioner;
224.26 	(5) two representatives of disability advocacy organizations, appointed by the 
224.27 	commissioner;
224.28 	(6) one representative of aging services organizations, appointed by LeadingAge 
224.29 	Minnesota;
224.30 	(7) one representative of aging services organizations, appointed by Care Providers of 
224.31 	Minnesota; and
225.1 	(8) additional nonvoting participants as determined by the commissioner, which may 
225.2 	include staff from the Department of Human Services and other interested parties.
225.3 		Subd. 3.Duties. The working group shall make recommendations to shift the 
225.4 	responsibility and administration of conducting MnCHOICES assessments to the state. 
225.5 	Recommendations must include:
225.6 	(1) defined roles and responsibilities between county, Tribal Nation, and state functions;
225.7 	(2) revised payment methodologies and financing of duties;
225.8 	(3) efficient workflows between local and state functions;
225.9 	(4) service continuity for people seeking and receiving long-term services and supports; 
225.10 	and
225.11 	(5) methods for gathering public feedback and providing public awareness.
225.12 		Subd. 4.Terms, compensation, and removal. The terms, compensation, and removal 
225.13 	of the working group members are governed by Minnesota Statutes, section 15.059.
225.14 		Subd. 5.Meetings; administrative support. (a) The first meeting of the working group 
225.15 	must be convened no later than August 1, 2026. The working group must meet at least 
225.16 	monthly. The working group may meet by telephone or interactive technology consistent 
225.17 	with Minnesota Statutes, section 13D.015.
225.18 	(b) The Department of Human Services shall provide staff and administrative support 
225.19 	to convene the working group, facilitate working group meetings, and prepare the final 
225.20 	report.
225.21 		Subd. 6.Report. By September 1, 2027, the commissioner must submit a report of the 
225.22 	working group's findings and recommendations, including but not limited to any legislative 
225.23 	changes necessary to implement the recommendations, to the chairs and ranking minority 
225.24 	members of the legislative committees with jurisdiction over human services policy and 
225.25 	finance.
225.26 		Subd. 7.Expiration. The working group expires upon submission of the report required 
225.27 	under subdivision 6.

225.28 	Sec. 29. REPEALER.
 225.29 	Minnesota Statutes 2024, section 256B.073, subdivision 4, is repealed.

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

226.1 	ARTICLE 7
226.2 	MISCELLANEOUS

226.3 	Section 1. Minnesota Statutes 2024, section 8.16, subdivision 1, is amended to read:
226.4 		Subdivision 1.Authority. (a) The attorney general, or any deputy, assistant, or special 
226.5 	assistant attorney general whom the attorney general authorizes in writing, has the authority 
226.6 	in any county of the state to subpoena and require the production of: (1) any records of: (i)
226.7 	telephone companies, cellular phone companies, and paging companies,; (ii) subscribers of 
226.8 	private computer networks, including Internet service providers or computer bulletin board 
226.9 	systems,; (iii) electric companies, gas companies, and water utilities,; (iv) chemical suppliers,;
226.10 	(v) hotels and motels,; (vi) pawn shops,; (vii) airlines, buses, taxis, and other entities engaged 
226.11 	in the business of transporting people,; and (viii) freight companies, self-service storage 
226.12 	facilities, warehousing companies, package delivery companies, and other entities engaged 
226.13 	in the businesses of transport, storage, or delivery, and; (2) wage and employment records; 
226.14 	(3) records of the existence of safe deposit box account numbers and customer savings and 
226.15 	checking account numbers maintained by financial institutions and safe deposit companies; 
226.16 	(4) insurance records related to claim settlement; and (5) banking, credit card, and financial 
226.17 	records, including but not limited to a safe deposit, loan and account application and 
226.18 	agreement, signature card, statement, check, transfer, account authorization, safe deposit 
226.19 	access record, and documentation of fraud, that belong to the subject of an investigation 
226.20 	conducted pursuant to the attorney general's authority under section 256B.12, whether the 
226.21 	record is held in the investigation subject's name or in another person's name.
226.22 	(b) Subpoenas may only be issued for records that are relevant to an ongoing legitimate 
226.23 	law enforcement investigation.

226.24 	Sec. 2. Minnesota Statutes 2025 Supplement, section 15.471, subdivision 6, is amended 
226.25 	to read:
226.26 		Subd. 6.Party. (a) Except as modified by paragraph (b), "party" means a person named 
226.27 	or admitted as a party, or seeking and entitled to be admitted as a party, in a court action or 
226.28 	contested case proceeding, or a person admitted by an administrative law judge for limited 
226.29 	purposes, and who is:
226.30 	(1) an unincorporated business, partnership, corporation, association, or organization, 
226.31 	having not more than 500 employees at the time the civil action was filed or the contested 
226.32 	case proceeding was initiated; and
227.1 	(2) an unincorporated business, partnership, corporation, association, or organization 
227.2 	whose annual revenues did not exceed $7,000,000 $13,500,000 at the time the civil action 
227.3 	was filed or the contested case proceeding was initiated.
227.4 	(b) "Party" also includes a partner, officer, shareholder, member, or owner of an entity 
227.5 	described in paragraph (a), clauses (1) and (2).
227.6 	(c) "Party" does not include a person providing services pursuant to licensure or 
227.7 	reimbursement on a cost basis by the Department of Health, the Department of Human 
227.8 	Services, or Direct Care and Treatment when that person is named or admitted or seeking 
227.9 	to be admitted as a party in a matter which involves the licensing or reimbursement rates, 
227.10 	procedures, or methodology applicable to those services.

227.11 	Sec. 3. Minnesota Statutes 2024, section 144G.41, subdivision 1, is amended to read:
227.12 		Subdivision 1.Minimum requirements. All assisted living facilities shall:
227.13 	(1) distribute to residents the assisted living bill of rights;
227.14 	(2) provide services in a manner that complies with the Nurse Practice Act in sections 
227.15 	148.171 to 148.285;
227.16 	(3) utilize a person-centered planning and service delivery process;
227.17 	(4) have and maintain a system for delegation of health care activities to unlicensed 
227.18 	personnel by a registered nurse, including supervision and evaluation of the delegated 
227.19 	activities as required by the Nurse Practice Act in sections 148.171 to 148.285;
227.20 	(5) except as specified in subdivision 1c, provide a means for residents to request 
227.21 	assistance for health and safety needs 24 hours per day, seven days per week. A facility 
227.22 	may use person-centered strategies to provide a means for residents to request assistance 
227.23 	and, if effective, may allow residents to use technological devices to request assistance;
227.24 	(6) allow residents the ability to furnish and decorate the resident's unit within the terms 
227.25 	of the assisted living contract;
227.26 	(7) permit residents access to food at any time;
227.27 	(8) allow residents to choose the resident's visitors and times of visits;
227.28 	(9) allow the resident the right to choose a roommate if sharing a unit;
227.29 	(10) notify the resident of the resident's right to have and use a lockable door to the 
227.30 	resident's unit. The licensee shall provide the locks on the unit. Only a staff member with 
227.31 	a specific need to enter the unit shall have keys, and advance notice must be given to the 
228.1 	resident before entrance, when possible. An assisted living facility must not lock a resident 
228.2 	in the resident's unit;
228.3 	(11) develop and implement a staffing plan for determining its staffing level that:
228.4 	(i) includes an evaluation, to be conducted at least twice a year, of the appropriateness 
228.5 	of staffing levels in the facility;
228.6 	(ii) ensures sufficient staffing at all times to meet the scheduled and reasonably 
228.7 	foreseeable unscheduled needs of each resident as required by the residents' assessments 
228.8 	and service plans on a 24-hour per day basis; and
228.9 	(iii) ensures that the facility can respond promptly and effectively to individual resident 
228.10 	emergencies and to emergency, life safety, and disaster situations affecting staff or residents 
228.11 	in the facility;
228.12 	(12) ensure that one or more persons are available 24 hours per day, seven days per 
228.13 	week, who are responsible for responding to the requests of residents for assistance with 
228.14 	health or safety needs. Such persons must be:
228.15 	(i) awake;
228.16 	(ii) located in the same building, in an attached building, or on a contiguous campus 
228.17 	with the facility in order to respond within a reasonable amount of time;
228.18 	(iii) capable of communicating with residents;
228.19 	(iv) capable of providing or summoning the appropriate assistance; and
228.20 	(v) capable of following directions; and
228.21 	(13) provide staff access to an on-call registered nurse 24 hours per day, seven days per 
228.22 	week.

228.23 	Sec. 4. Minnesota Statutes 2024, section 144G.41, is amended by adding a subdivision to 
228.24 	read:
228.25 		Subd. 1c.Alternative to summoning device to request assistance. For a resident who, 
228.26 	based on an individualized nursing assessment under section 144G.70, subdivision 2, cannot 
228.27 	reliably use a summoning device such as a phone, bell, call light, pull cord, or pendant to 
228.28 	request assistance for health and safety needs, a facility:
228.29 	(1) is not required to have a resident use a summoning device to request assistance for 
228.30 	health and safety needs; and
228.31 	(2) must use person-centered strategies to meet the resident's assessed needs.

229.1 	Sec. 5. Minnesota Statutes 2025 Supplement, section 256B.12, is amended to read:
229.2 	256B.12 LEGAL REPRESENTATION.
229.3 	The attorney general or the appropriate county attorney appearing at the direction of the 
229.4 	attorney general shall be the attorney for the state agency, and the county attorney of the 
229.5 	appropriate county shall be the attorney for the county agency in all matters pertaining 
229.6 	hereto. To prosecute under this chapter or sections 609.466 609.467; 609.52, subdivision 
229.7 	2; and 609.542 or to recover payments wrongfully made under this chapter, the attorney 
229.8 	general or the appropriate county attorney, acting independently or at the direction of the 
229.9 	attorney general may institute a criminal or civil action.

229.10 	Sec. 6. Minnesota Statutes 2024, section 295.50, subdivision 4, is amended to read:
229.11 		Subd. 4.Health care provider. (a) "Health care provider" means:
229.12 	(1) a person whose health care occupation is regulated or required to be regulated by 
229.13 	the state of Minnesota furnishing any or all of the following goods or services directly to a 
229.14 	patient or consumer: medical, surgical, optical, visual, dental, hearing, nursing services, 
229.15 	drugs, laboratory, diagnostic or therapeutic services;
229.16 	(2) a person who provides goods and services not listed in clause (1) that qualify for 
229.17 	reimbursement under the medical assistance program provided under chapter 256B;
229.18 	(3) a staff model health plan company;
229.19 	(4) an ambulance service required to be licensed;
229.20 	(5) a person who sells or repairs hearing aids and related equipment or prescription 
229.21 	eyewear; or
229.22 	(6) a person providing patient services, who does not otherwise meet the definition of 
229.23 	health care provider and is not specifically excluded in clause paragraph (b), who employs 
229.24 	or contracts with a health care provider as defined in clauses (1) to (5) to perform, supervise, 
229.25 	otherwise oversee, or consult with regarding patient services.
229.26 	(b) Health care provider does not include:
229.27 	(1) hospitals; medical supplies distributors, except as specified under paragraph (a), 
229.28 	clause (5); nursing homes licensed under chapter 144A or licensed in any other jurisdiction; 
229.29 	wholesale drug distributors; pharmacies; surgical centers; bus and taxicab transportation, 
229.30 	or any other providers of transportation services other than ambulance services required to 
229.31 	be licensed; supervised living facilities for persons with developmental disabilities, licensed 
229.32 	under Minnesota Rules, parts 4665.0100 to 4665.9900; housing with services establishments 
230.1 	required to be registered under chapter 144D assisted living facilities licensed under chapter 
230.2 	144G; board and lodging establishments providing only custodial services that are licensed 
230.3 	under chapter 157 and registered under section 157.17 to provide supportive services or 
230.4 	health supervision services; adult foster homes as defined in Minnesota Rules, part 
230.5 	9555.5105; day training and habilitation services for adults with developmental disabilities 
230.6 	as defined in section 252.41, subdivision 3; boarding care homes, as defined in Minnesota 
230.7 	Rules, part 4655.0100; and adult day care centers as defined in Minnesota Rules, part 
230.8 	9555.9600;
230.9 	(2) home health agencies as defined in Minnesota Rules, part 9505.0175, subpart 15; a 
230.10 	person providing personal care assistance services and supervision of personal care assistance 
230.11 	services as defined in Minnesota Rules, part 9505.0335 section 256B.0625, subdivision 
230.12 	19a; a person providing home care nursing services as defined in Minnesota Rules, part 
230.13 	9505.0360; and home care providers required to be licensed under chapter 144A for home 
230.14 	care services provided under chapter 144A;
230.15 	(3) a person who employs health care providers solely for the purpose of providing 
230.16 	patient services to its employees;
230.17 	(4) an educational institution that employs health care providers solely for the purpose 
230.18 	of providing patient services to its students if the institution does not receive fee for service 
230.19 	payments or payments for extended coverage; and
230.20 	(5) a person who receives all payments for patient services from health care providers, 
230.21 	surgical centers, or hospitals for goods and services that are taxable to the paying health 
230.22 	care providers, surgical centers, or hospitals, as provided under section 295.53, subdivision 
230.23 	1, paragraph (b), clause (3) or (4), or from a source of funds that is excluded or exempt from 
230.24 	tax under sections 295.50 to 295.59.

230.25 	Sec. 7. Minnesota Statutes 2025 Supplement, section 295.50, subdivision 9b, is amended 
230.26 	to read:
230.27 		Subd. 9b.Patient services. (a) "Patient services" means inpatient and outpatient services 
230.28 	and other goods and services provided by hospitals, surgical centers, or health care providers. 
230.29 	They include the following health care goods and services provided to a patient or consumer:
230.30 	(1) bed and board;
230.31 	(2) nursing services and other related services;
230.32 	(3) use of hospitals, surgical centers, or health care provider facilities;
231.1 	(4) medical social services;
231.2 	(5) drugs, biologicals, supplies, appliances, and equipment;
231.3 	(6) other diagnostic or therapeutic items or services;
231.4 	(7) medical or surgical services;
231.5 	(8) items and services furnished to ambulatory patients not requiring emergency care; 
231.6 	and
231.7 	(9) emergency services.
231.8 	(b) "Patient services" does not include:
231.9 	(1) services provided to nursing homes licensed under chapter 144A;
231.10 	(2) examinations for purposes of utilization reviews, insurance claims or eligibility, 
231.11 	litigation, and employment, including reviews of medical records for those purposes;
231.12 	(3) services provided to and by community residential mental health facilities licensed 
231.13 	under section 245I.23 or Minnesota Rules, parts 9520.0500 to 9520.0670, and to and by 
231.14 	residential treatment programs for children with a serious mental illness licensed or certified 
231.15 	under chapter 245A;
231.16 	(4) services provided under the following programs: day treatment services as defined 
231.17 	in section 245.462, subdivision 8; assertive community treatment as described in section 
231.18 	256B.0622; adult rehabilitative mental health services as described in section 256B.0623; 
231.19 	crisis response services as described in section 256B.0624; and children's therapeutic services 
231.20 	and supports as described in section 256B.0943;
231.21 	(5) services provided to and by community mental health centers as defined in section 
231.22 	245.62, subdivision 2;
231.23 	(6) services provided to and by assisted living programs and congregate housing 
231.24 	programs;
231.25 	(7) hospice care services;
231.26 	(8) home and community-based waivered services under chapter 256S and sections 
231.27 	256B.49 and 256B.501;
231.28 	(9) targeted case management services under sections 256B.0621; 256B.0625, 
231.29 	subdivisions 20, 20a, 33, and 44; and 256B.094; and
231.30 	(10) services provided to the following: supervised living facilities for persons with 
231.31 	developmental disabilities licensed under Minnesota Rules, parts 4665.0100 to 4665.9900; 
232.1 	housing with services establishments required to be registered under chapter 144D assisted 
232.2 	living facilities licensed under chapter 144G; board and lodging establishments providing 
232.3 	only custodial services that are licensed under chapter 157 and registered under section 
232.4 	157.17 to provide supportive services or health supervision services; adult foster homes as 
232.5 	defined in Minnesota Rules, part 9555.5105; day training and habilitation services for adults 
232.6 	with developmental disabilities as defined in section 252.41, subdivision 3; boarding care 
232.7 	homes as defined in Minnesota Rules, part 4655.0100; adult day care services as defined 
232.8 	in section 245A.02, subdivision 2a; and home health agencies as defined in Minnesota 
232.9 	Rules, part 9505.0175, subpart 15, or licensed under chapter 144A.

232.10 	Sec. 8. [609.467] MEDICAL ASSISTANCE FRAUD.
232.11 		Subdivision 1.Medical assistance fraud prohibited. A person who does any of the 
232.12 	following is guilty of medical assistance fraud and may be sentenced as provided in 
232.13 	subdivision 2:
232.14 	(1) acting with intent to defraud, executes or participates in, or attempts or conspires to 
232.15 	execute or participate in, a scheme or artifice to obtain, by means of any false or fraudulent 
232.16 	pretenses, representations, or promises, or concealment of any material fact, any money or 
232.17 	credits relating to the payment of medical assistance funds under chapter 256B;
232.18 	(2) acting with intent to defraud, presents, submits, tenders, offers, or participates in, or 
232.19 	attempts or conspires to execute or participate in, the preparation of a claim for payment, 
232.20 	claim for reimbursement, cost report, or rate application, knowing or having reason to know 
232.21 	that any part of the claim, report, or application is ineligible for payment or reimbursement;
232.22 	(3) acting with intent to defraud, knowingly provides false information or intentionally 
232.23 	omits material information as part of any enrollment application, provider agreement, or 
232.24 	ownership and management disclosure required by any state or federal law as a medical 
232.25 	assistance provider under chapter 245A or 256B;
232.26 	(4) owns, operates, manages, or exercises control over any entity receiving medical 
232.27 	assistance money, while knowing or having reason to know that the person has been 
232.28 	suspended or prohibited from enrolling as a medical assistance provider by any state agency 
232.29 	or under any state law or is excluded or prohibited from enrolling as a medical assistance 
232.30 	provider by any federal agency or under any federal law;
232.31 	(5) knowingly and intentionally permits another person to own, operate, manage, or 
232.32 	exercise control over any entity receiving medical assistance money, while knowing or 
232.33 	having reason to know the other person is suspended or prohibited from enrolling as a 
233.1 	medical assistance provider by any state agency or under any state law or is excluded or 
233.2 	prohibited from enrolling as a medical assistance provider by any federal agency or under 
233.3 	any federal law;
233.4 	(6) falsely makes or alters any record relating to the delivery of medical assistance 
233.5 	services so that the record purports to have been made by another person or by the maker 
233.6 	or alterer under an assumed or fictitious name, or at another time, or with different provisions, 
233.7 	or by the authority of a person who did not give such authority;
233.8 	(7) acting with intent to defraud, presents, submits, tenders, offers, or participates in, or 
233.9 	attempts or conspires to participate in, the preparation of a claim for reimbursement for 
233.10 	personal care assistance services under section 256B.0659 or community first services and 
233.11 	supports under section 256B.85, knowing or having reason to know that required conditions 
233.12 	for payment under chapter 256B were not met, including applicable service authorization, 
233.13 	service delivery plan, documentation, training, supervision, evaluation, or other program 
233.14 	requirements; or
233.15 	(8) after receiving a lawful request for records by any state agency or law enforcement 
233.16 	agency, intentionally destroys, or attempts or conspires to destroy, medical, health care, and 
233.17 	financial records required to be maintained under chapter 245A or 256B or rules adopted 
233.18 	pursuant to those chapters.
233.19 		Subd. 2.Penalties. (a) A person who is convicted under subdivision 1 may be sentenced 
233.20 	to imprisonment for not more than ten years or to payment of not more than $20,000, or 
233.21 	both.
233.22 	(b) A person who is convicted under subdivision 1 may be sentenced to imprisonment 
233.23 	for not more than 20 years or to payment of not more than $100,000, or both, if the violation 
233.24 	causes a loss to any victim in an aggregate amount of more than $100,000, but not more 
233.25 	than $1,000,000.
233.26 	(c) A person who is convicted under subdivision 1 may be sentenced to imprisonment 
233.27 	for not more than 30 years or to payment of not more than $1,000,000, or both, if the violation 
233.28 	causes a loss to any victim in an aggregate amount of more than $1,000,000.
233.29 		Subd. 3.Failure to keep or maintain medical assistance records. A person who 
233.30 	submits a claim for reimbursement, claim for payment, claim for reimbursement cost report, 
233.31 	or rate application and knowingly and intentionally fails to maintain medical, health care, 
233.32 	and financial records as required under chapter 245A or 256B or rules adopted pursuant to 
233.33 	those chapters is guilty of a gross misdemeanor.
234.1 		Subd. 4.Continuing offense. For purposes of calculating the statute of limitations 
234.2 	identified in section 628.26, any violation of subdivision 1 or 3 is a continuing offense. Any 
234.3 	violation of subdivision 1 or 3 extends to any act committed during the course of the scheme, 
234.4 	conspiracy, or conduct and is within the statute of limitations identified in section 628.26 
234.5 	so long as any part of the continuing scheme, conspiracy, or conduct comprising a violation 
234.6 	occurred within the identified statute of limitations.
234.7 		Subd. 5.Venue. Notwithstanding anything to the contrary in section 627.01, a violation 
234.8 	of this section may be prosecuted in:
234.9 	(1) the county where any part of the offense occurred; or
234.10 	(2) the county where the entity that received a claim for payment, claim for 
234.11 	reimbursement, cost report, or rate application is located.
234.12 		Subd. 6.Restitution. The court may order a person convicted of violating this section 
234.13 	to pay restitution for any costs, expenses, or losses resulting from the crime and for costs, 
234.14 	expenses, or losses resulting from similar conduct that was related to the offense but was 
234.15 	not charged. The court may order restitution for similar conduct that was related to the 
234.16 	offense if the related conduct occurred within the applicable statute of limitations and the 
234.17 	prosecutor provides notice of intent to seek restitution for that conduct at least five business 
234.18 	days before the sentencing hearing. The offender may challenge restitution as provided in 
234.19 	section 611A.045, subdivision 3. A dispute as to whether restitution is for similar conduct 
234.20 	that was related to the offense must be resolved by the court by the preponderance of the 
234.21 	evidence. The burden of demonstrating that the court may order restitution for any cost, 
234.22 	expense, or loss described in this subdivision is on the prosecution.

234.23 	EFFECTIVE DATE. This section is effective August 1, 2026, and applies to crimes 
234.24 	committed on or after that date.

234.25 	Sec. 9. Minnesota Statutes 2024, section 609.52, subdivision 2, is amended to read:
234.26 		Subd. 2.Acts constituting theft. (a) Whoever does any of the following commits theft 
234.27 	and may be sentenced as provided in subdivision 3:
234.28 	(1) intentionally and without claim of right takes, uses, transfers, conceals or retains 
234.29 	possession of movable property of another without the other's consent and with intent to 
234.30 	deprive the owner permanently of possession of the property; or
234.31 	(2) with or without having a legal interest in movable property, intentionally and without 
234.32 	consent, takes the property out of the possession of a pledgee or other person having a 
235.1 	superior right of possession, with intent thereby to deprive the pledgee or other person 
235.2 	permanently of the possession of the property; or
235.3 	(3) obtains for the actor or another the possession, custody, or title to property of or 
235.4 	performance of services by a third person by intentionally deceiving the third person with 
235.5 	a false representation which is known to be false, made with intent to defraud, and which 
235.6 	does defraud the person to whom it is made. "False representation" includes without 
235.7 	limitation:
235.8 	(i) the issuance of a check, draft, or order for the payment of money, except a forged 
235.9 	check as defined in section 609.631, or the delivery of property knowing that the actor is 
235.10 	not entitled to draw upon the drawee therefor or to order the payment or delivery thereof; 
235.11 	or
235.12 	(ii) a promise made with intent not to perform. Failure to perform is not evidence of 
235.13 	intent not to perform unless corroborated by other substantial evidence; or
235.14 	(iii) the preparation or filing of a claim for reimbursement, a rate application, or a cost 
235.15 	report used to establish a rate or claim for payment for medical care provided to a recipient 
235.16 	of medical assistance under chapter 256B, which intentionally and falsely states the costs 
235.17 	of or actual services provided by a vendor of medical care; or
235.18 	(iv) (iii) the preparation or filing of a claim for reimbursement for providing treatment 
235.19 	or supplies required to be furnished to an employee under section 176.135 which intentionally 
235.20 	and falsely states the costs of or actual treatment or supplies provided; or
235.21 	(v) (iv) the preparation or filing of a claim for reimbursement for providing treatment 
235.22 	or supplies required to be furnished to an employee under section 176.135 for treatment or 
235.23 	supplies that the provider knew were medically unnecessary, inappropriate, or excessive; 
235.24 	or
235.25 	(4) by swindling, whether by artifice, trick, device, or any other means, obtains property 
235.26 	or services from another person; or
235.27 	(5) intentionally commits any of the acts listed in this subdivision but with intent to 
235.28 	exercise temporary control only and:
235.29 	(i) the control exercised manifests an indifference to the rights of the owner or the 
235.30 	restoration of the property to the owner; or
235.31 	(ii) the actor pledges or otherwise attempts to subject the property to an adverse claim; 
235.32 	or
236.1 	(iii) the actor intends to restore the property only on condition that the owner pay a 
236.2 	reward or buy back or make other compensation; or
236.3 	(6) finds lost property and, knowing or having reasonable means of ascertaining the true 
236.4 	owner, appropriates it to the finder's own use or to that of another not entitled thereto without 
236.5 	first having made reasonable effort to find the owner and offer and surrender the property 
236.6 	to the owner; or
236.7 	(7) intentionally obtains property or services, offered upon the deposit of a sum of money 
236.8 	or tokens in a coin or token operated machine or other receptacle, without making the 
236.9 	required deposit or otherwise obtaining the consent of the owner; or
236.10 	(8) intentionally and without claim of right converts any article representing a trade 
236.11 	secret, knowing it to be such, to the actor's own use or that of another person or makes a 
236.12 	copy of an article representing a trade secret, knowing it to be such, and intentionally and 
236.13 	without claim of right converts the same to the actor's own use or that of another person. It 
236.14 	shall be a complete defense to any prosecution under this clause for the defendant to show 
236.15 	that information comprising the trade secret was rightfully known or available to the 
236.16 	defendant from a source other than the owner of the trade secret; or
236.17 	(9) leases or rents personal property under a written instrument and who:
236.18 	(i) with intent to place the property beyond the control of the lessor conceals or aids or 
236.19 	abets the concealment of the property or any part thereof; or
236.20 	(ii) sells, conveys, or encumbers the property or any part thereof without the written 
236.21 	consent of the lessor, without informing the person to whom the lessee sells, conveys, or 
236.22 	encumbers that the same is subject to such lease or rental contract with intent to deprive the 
236.23 	lessor of possession thereof; or
236.24 	(iii) does not return the property to the lessor at the end of the lease or rental term, plus 
236.25 	agreed-upon extensions, with intent to wrongfully deprive the lessor of possession of the 
236.26 	property; or
236.27 	(iv) returns the property to the lessor at the end of the lease or rental term, plus 
236.28 	agreed-upon extensions, but does not pay the lease or rental charges agreed upon in the 
236.29 	written instrument, with intent to wrongfully deprive the lessor of the agreed-upon charges.
236.30 	For the purposes of items (iii) and (iv), the value of the property must be at least $100.
236.31 	Evidence that a lessee used a false, fictitious, or not current name, address, or place of 
236.32 	employment in obtaining the property or fails or refuses to return the property or pay the 
236.33 	rental contract charges to lessor within five days after written demand for the return has 
237.1 	been served personally in the manner provided for service of process of a civil action or 
237.2 	sent by certified mail to the last known address of the lessee, whichever shall occur later, 
237.3 	shall be evidence of intent to violate this clause. Service by certified mail shall be deemed 
237.4 	to be complete upon deposit in the United States mail of such demand, postpaid and addressed 
237.5 	to the person at the address for the person set forth in the lease or rental agreement, or, in 
237.6 	the absence of the address, to the person's last known place of residence; or
237.7 	(10) alters, removes, or obliterates numbers or symbols placed on movable property for 
237.8 	purpose of identification by the owner or person who has legal custody or right to possession 
237.9 	thereof with the intent to prevent identification, if the person who alters, removes, or 
237.10 	obliterates the numbers or symbols is not the owner and does not have the permission of 
237.11 	the owner to make the alteration, removal, or obliteration; or
237.12 	(11) with the intent to prevent the identification of property involved, so as to deprive 
237.13 	the rightful owner of possession thereof, alters or removes any permanent serial number, 
237.14 	permanent distinguishing number or manufacturer's identification number on personal 
237.15 	property or possesses, sells or buys any personal property knowing or having reason to 
237.16 	know that the permanent serial number, permanent distinguishing number or manufacturer's 
237.17 	identification number has been removed or altered; or
237.18 	(12) intentionally deprives another of a lawful charge for cable television service by:
237.19 	(i) making or using or attempting to make or use an unauthorized external connection 
237.20 	outside the individual dwelling unit whether physical, electrical, acoustical, inductive, or 
237.21 	other connection; or by
237.22 	(ii) attaching any unauthorized device to any cable, wire, microwave, or other component 
237.23 	of a licensed cable communications system as defined in chapter 238. Nothing herein shall 
237.24 	be construed to prohibit the electronic video rerecording of program material transmitted 
237.25 	on the cable communications system by a subscriber for fair use as defined by Public Law 
237.26 	94-553, section 107; or
237.27 	(13) except as provided in clauses (12) and (14), obtains the services of another with 
237.28 	the intention of receiving those services without making the agreed or reasonably expected 
237.29 	payment of money or other consideration; or
237.30 	(14) intentionally deprives another of a lawful charge for telecommunications service 
237.31 	by:
238.1 	(i) making, using, or attempting to make or use an unauthorized connection whether 
238.2 	physical, electrical, by wire, microwave, radio, or other means to a component of a local 
238.3 	telecommunication system as provided in chapter 237; or
238.4 	(ii) attaching an unauthorized device to a cable, wire, microwave, radio, or other 
238.5 	component of a local telecommunication system as provided in chapter 237.
238.6 	The existence of an unauthorized connection is prima facie evidence that the occupier 
238.7 	of the premises:
238.8 	(A) made or was aware of the connection; and
238.9 	(B) was aware that the connection was unauthorized;
238.10 	(15) with intent to defraud, diverts corporate property other than in accordance with 
238.11 	general business purposes or for purposes other than those specified in the corporation's 
238.12 	articles of incorporation; or
238.13 	(16) with intent to defraud, authorizes or causes a corporation to make a distribution in 
238.14 	violation of section 302A.551, or any other state law in conformity with it; or
238.15 	(17) takes or drives a motor vehicle without the consent of the owner or an authorized 
238.16 	agent of the owner, knowing or having reason to know that the owner or an authorized agent 
238.17 	of the owner did not give consent; or
238.18 	(18) intentionally, and without claim of right, takes motor fuel from a retailer without 
238.19 	the retailer's consent and with intent to deprive the retailer permanently of possession of 
238.20 	the fuel by driving a motor vehicle from the premises of the retailer without having paid 
238.21 	for the fuel dispensed into the vehicle; or
238.22 	(19) commits wage theft under subdivision 1, clause (13).
238.23 	(b) Proof that the driver of a motor vehicle into which motor fuel was dispensed drove 
238.24 	the vehicle from the premises of the retailer without having paid for the fuel permits the 
238.25 	factfinder to infer that the driver acted intentionally and without claim of right, and that the 
238.26 	driver intended to deprive the retailer permanently of possession of the fuel. This paragraph 
238.27 	does not apply if: (1) payment has been made to the retailer within 30 days of the receipt 
238.28 	of notice of nonpayment under section 604.15; or (2) a written notice as described in section 
238.29 	604.15, subdivision 4, disputing the retailer's claim, has been sent. This paragraph does not 
238.30 	apply to the owner of a motor vehicle if the vehicle or the vehicle's license plate has been 
238.31 	reported stolen before the theft of the fuel.

239.1 	EFFECTIVE DATE. This section is effective August 1, 2026, and applies to crimes 
239.2 	committed on or after that date.

239.3 	Sec. 10. Minnesota Statutes 2025 Supplement, section 609.902, subdivision 4, is amended 
239.4 	to read:
239.5 		Subd. 4.Criminal act. "Criminal act" means conduct constituting, or a conspiracy or 
239.6 	attempt to commit, a felony violation of chapter 152, or a felony violation of section 299F.79; 
239.7 	299F.80; 299F.82; 609.185; 609.19; 609.195; 609.20; 609.205; 609.221; 609.222; 609.223; 
239.8 	609.2231; 609.228; 609.235; 609.245; 609.25; 609.27; 609.322; 609.342; 609.343; 609.344; 
239.9 	609.345; 609.42; 609.467;609.48; 609.485; 609.495; 609.496; 609.497; 609.498; 609.52, 
239.10 	subdivision 2, if the offense is punishable under subdivision 3, clause (1), if the property is 
239.11 	a firearm, clause (3)(b), or clause (3)(d)(v); section 609.52, subdivision 2, paragraph (a), 
239.12 	clause (1) or (4); 609.527, if the crime is punishable under subdivision 3, clause (4); 609.528, 
239.13 	if the crime is punishable under subdivision 3, clause (4); 609.53; 609.561; 609.562; 609.582, 
239.14 	subdivision 1 or 2; 609.668, subdivision 6, paragraph (a); 609.67; 609.687; 609.713; 609.86; 
239.15 	609.894, subdivision 3 or 4; 609.895; 624.713; 624.7191; or 626A.02, subdivision 1, if the 
239.16 	offense is punishable under section 626A.02, subdivision 4, paragraph (a). "Criminal act" 
239.17 	also includes conduct constituting, or a conspiracy or attempt to commit, a felony violation 
239.18 	of section 609.52, subdivision 2, clause (3), (4), (15), or (16), if the violation involves an 
239.19 	insurance company as defined in section 60A.02, subdivision 4, a nonprofit health service 
239.20 	plan corporation regulated under chapter 62C, a health maintenance organization regulated 
239.21 	under chapter 62D, or a fraternal benefit society regulated under chapter 64B, or any state 
239.22 	agency.

239.23 	Sec. 11. Minnesota Statutes 2025 Supplement, section 628.26, is amended to read:
239.24 	628.26 LIMITATIONS.
239.25 	(a) Indictments or complaints for any crime resulting in the death of the victim may be 
239.26 	found or made at any time after the death of the person killed.
239.27 	(b) Indictments or complaints for a violation of section 609.25 may be found or made 
239.28 	at any time after the commission of the offense.
239.29 	(c) Indictments or complaints for violation of section 609.282 may be found or made at 
239.30 	any time after the commission of the offense if the victim was under the age of 18 at the 
239.31 	time of the offense.
240.1 	(d) Indictments or complaints for violation of section 609.282 where the victim was 18 
240.2 	years of age or older at the time of the offense, or 609.42, subdivision 1, clause (1) or (2), 
240.3 	shall be found or made and filed in the proper court within six years after the commission 
240.4 	of the offense.
240.5 	(e) Indictments or complaints for violation of sections 609.322, 609.342 to 609.345, and 
240.6 	609.3458 may be found or made at any time after the commission of the offense.
240.7 	(f) Indictments or complaints for a violation of section 609.561 shall be found or made 
240.8 	and filed in the proper court within ten years after the commission of the offense.
240.9 	(g) Indictments or complaints for violation of sections 609.466 609.467 and 609.52, 
240.10 	subdivision 2, paragraph (a), clause (3), item (iii), shall be found or made and filed in the 
240.11 	proper court within six years after the commission of the offense.
240.12 	(h) Indictments or complaints for violation of section 609.2335, 609.52, subdivision 2, 
240.13 	paragraph (a), clause (3), items (i) and (ii), (4), (15), or (16), 609.631, or 609.821, where 
240.14 	the value of the property or services stolen is more than $35,000, or for violation of section 
240.15 	609.527 where the offense involves eight or more direct victims or the total combined loss 
240.16 	to the direct and indirect victims is more than $35,000, shall be found or made and filed in 
240.17 	the proper court within five years after the commission of the offense.
240.18 	(i) Except for violations relating to false material statements, representations or omissions, 
240.19 	indictments or complaints for violations of section 609.671 shall be found or made and filed 
240.20 	in the proper court within five years after the commission of the offense.
240.21 	(j) Indictments or complaints for violation of sections 609.562 and 609.563, shall be 
240.22 	found or made and filed in the proper court within five years after the commission of the 
240.23 	offense.
240.24 	(k) Indictments or complaints for violation of section 609.746 shall be found or made 
240.25 	and filed in the proper court within the later of three years after the commission of the 
240.26 	offense or three years after the offense was reported to law enforcement authorities.
240.27 	(l) In all other cases, indictments or complaints shall be found or made and filed in the 
240.28 	proper court within three years after the commission of the offense.
240.29 	(m) The limitations periods contained in this section shall exclude any period of time 
240.30 	during which the defendant was not an inhabitant of or usually resident within this state.
240.31 	(n) The limitations periods contained in this section for an offense shall not include any 
240.32 	period during which the alleged offender participated under a written agreement in a pretrial 
240.33 	diversion program relating to that offense.
241.1 	(o) The limitations periods contained in this section shall not include any period of time 
241.2 	during which physical evidence relating to the offense was undergoing DNA analysis, as 
241.3 	defined in section 299C.155, unless the defendant demonstrates that the prosecuting or law 
241.4 	enforcement agency purposefully delayed the DNA analysis process in order to gain an 
241.5 	unfair advantage.

241.6 	Sec. 12. DIRECTION TO COMMISSIONER; ASSESSMENT OF 
241.7 	ADMINISTRATION ROLES.
 241.8 	(a) The commissioner of human services, in consultation with Tribal Nations and counties, 
241.9 	must conduct a study to assess and recommend improvements to the roles and responsibilities 
241.10 	of the state agency, counties, and Tribal Nations in administering human services programs.
241.11 	(b) The study must include a comprehensive review of programs administered by the 
241.12 	department, including but not limited to medical assistance, MinnesotaCare, behavioral 
241.13 	health services, long-term services and supports, housing and homelessness programs, 
241.14 	Minnesota supplemental aid, general assistance, and licensing and oversight functions.
241.15 	(c) The study must evaluate the:
241.16 	(1) current roles and responsibilities held by the state agency, counties, and Tribal Nations 
241.17 	in administering human services programs, including but not limited to the challenges and 
241.18 	benefits of the current delegation of roles and responsibilities;
241.19 	(2) lived experience of people accessing human services programs related to the 
241.20 	delegation of administrative duties;
241.21 	(3) financing of human services program administration across the state agency, counties, 
241.22 	and Tribal Nations;
241.23 	(4) variations in service delivery between different geographical regions of the state; 
241.24 	and
241.25 	(5) administration of human services programs in other states, focusing on the roles and 
241.26 	responsibilities of the local governments versus the state Medicaid or human services agency, 
241.27 	and identifying the benefits, challenges, and financing of the delegation of duties.
241.28 	(d) The study must focus on the goals of transforming the human services system to 
241.29 	ensure a transparent, accessible, accountable, equitable, and effective human services system.
241.30 	(e) The study must provide recommendations for the optimal delegation of duties between 
241.31 	the state agency, counties, and Tribal Nations in the delivery of human services. 
241.32 	Recommendations must include:
242.1 	(1) how the delegation of duties will improve the experience of people accessing human 
242.2 	services;
242.3 	(2) implementation and timing considerations to ensure continuity of services;
242.4 	(3) systems technology adaptations required;
242.5 	(4) workforce considerations; and
242.6 	(5) financing strategies and the estimated fiscal impact to the state budget.
242.7 	(f) By October 1, 2028, the commissioner must submit a report on the study and 
242.8 	recommendations to the chairs and ranking minority members of the legislative committees 
242.9 	with jurisdiction over health and human services policy and finance.

242.10 	Sec. 13. REPEALER.
 242.11 	Minnesota Statutes 2024, section 609.466, is repealed.

242.12 	ARTICLE 8
242.13 	DEPARTMENT OF HUMAN SERVICES APPROPRIATIONS

242.14	Section 1. HUMAN SERVICES APPROPRIATIONS.
 	
242.15 	The dollar amounts shown in the columns marked "Appropriations" are added to or, if 
242.16 	shown in parentheses, are subtracted from the appropriations in Laws 2025, First Special 
242.17 	Session chapter 9, article 12, from the general fund or any fund named for the purposes 
242.18 	specified in this article, to be available for the fiscal year indicated for each purpose. The 
242.19 	figures "2026" and "2027" used in this article mean that the appropriations listed under them 
242.20 	are available for the fiscal years ending June 30, 2026, or June 30, 2027, respectively. "The 
242.21 	first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium" is 
242.22 	fiscal years 2026 and 2027.

242.23				APPROPRIATIONS
	
242.24				Available for the Year
	
242.25				Ending June 30
	
242.26					2026
		2027

242.27	Sec. 2. TOTAL APPROPRIATION
	$
	-0-
	$
	(122,988,000)

242.28	Appropriations by Fund
	
242.29		2026
	2027
	
242.30	General
	-0-
	(125,001,000)
	
242.31
242.32	Special Government 
Revenue Fund
	-0-
	2,013,000

242.33	Sec. 3. CENTRAL OFFICE; OPERATIONS
 	$
	-0-
	$
	28,615,000

243.1
243.2	Subdivision 1.Evaluation of DHS Structure and 
Processes
 					
243.3 	$500,000 in fiscal year 2027 is for a 
243.4 	comprehensive evaluation of the Department 
243.5 	of Human Services structure and processes. 
243.6 	This is a onetime appropriation and is 
243.7 	available until June 30, 2028.

243.8
243.9243.10
	Subd. 2.Assessment of State, County, and Tribal 
Nation Roles in Administering Human Services 
Programs
 					
243.11 	$3,000,000 in fiscal year 2027 is for an 
243.12 	assessment of state, county, and Tribal Nation 
243.13 	roles in administering human services 
243.14 	programs. This is a onetime appropriation and 
243.15 	is available until June 30, 2029.

243.16	Subd. 3.Base Level Adjustment
 					
243.17 	The general fund base is increased by 
243.18 	$19,071,000 in fiscal year 2028 and increased 
243.19 	by $16,954,000 in fiscal year 2029.

243.20	Sec. 4. CENTRAL OFFICE; HEALTH CARE
 	$
	-0-
	$
	1,795,000
	
243.21 	Base Level Adjustment The general fund 
243.22 	base is increased by $2,195,000 in fiscal year 
243.23 	2028 and increased by $2,160,000 in fiscal 
243.24 	year 2029.

243.25
243.26	Sec. 5. CENTRAL OFFICE; AGING AND 
DISABILITY SERVICES
 	$
	-0-
	$
	16,977,000

243.27
243.28	Subdivision 1.Market Rate and Homemaker 
Services Rate Study
 					
243.29 	$500,000 in fiscal year 2027 is for a study on 
243.30 	rate setting methodologies for services 
243.31 	currently offered under market rate 
243.32 	methodologies and homemaker services. This 
243.33 	is onetime appropriation and is available until 
243.34 	June 30, 2028.

244.1	Subd. 2.Waiver Case Management Study
 					
244.2 	$300,000 in fiscal year 2027 is for a study on 
244.3 	waiver case management services. This is a 
244.4 	onetime appropriation and is available until 
244.5 	June 30, 2028.

244.6	Subd. 3.Base Level Adjustment
 					
244.7 	The general fund base is increased by 
244.8 	$27,758,000 in fiscal year 2028 and increased 
244.9 	by $28,498,000 in fiscal year 2029.

244.10
244.11	Sec. 6. CENTRAL OFFICE; BEHAVIORAL 
HEALTH
 	$
	-0-
	$
	1,634,000

244.12
244.13	Subdivision 1.Access to Services for 
Incarcerated Individuals Evaluation
 					
244.14 	$150,000 in fiscal year 2027 is for community 
244.15 	engagement and evaluation related reentry 
244.16 	services.

244.17	Subd. 2.Base Level Adjustment
 					
244.18 	The general fund base is increased by 
244.19 	$2,094,000 in fiscal year 2028 and increased 
244.20 	by $2,077,000 in fiscal year 2029.

244.21
244.22	Sec. 7. CENTRAL OFFICE; OFFICE OF 
INSPECTOR GENERAL
 	$
	-0-
	$
	39,695,000

244.23	Subdivision 1.Appropriations by Fund

244.24	Appropriations by Fund
	
244.25		2026
	2027
	
244.26	General Fund
	-0-
	37,682,000
	
244.27
244.28	Special Government 
Revenue Fund
	-0-
	2,013,000

244.29	Subd. 2.Base Level Adjustment
 					
244.30 	The general fund base is increased by 
244.31 	$38,431,000 in fiscal year 2028 and increased 
244.32 	by $38,431,000 in fiscal year 2029. The 
244.33 	special revenue government fund base is 
244.34 	increased by $2,352,000 in fiscal year 2028 
245.1 	and increased by $2,352,000 in fiscal year 
245.2 	2029.

245.3
245.4	Sec. 8. FORECASTED PROGRAMS; 
HOUSING SUPPORT
 	$
	-0-
	$
	10,057,000

245.5
245.6	Sec. 9. FORECASTED PROGRAMS; 
MEDICAL ASSISTANCE
 	$
	-0-
	$
	(202,368,000)

245.7
245.8	Sec. 10. FORECASTED PROGRAMS; 
ALTERNATIVE CARE
 	$
	-0-
	$
	(156,000)

245.9245.10
	Sec. 11. FORECASTED PROGRAMS; 
BEHAVIORAL HEALTH FUND
 	$
	-0-
	$
	(19,237,000)

245.11 	ARTICLE 9
245.12 	OTHER AGENCY APPROPRIATIONS

245.13	Section 1. OTHER AGENCY APPROPRIATIONS.
 	
245.14 	The dollar amounts shown in the columns marked "Appropriations" are added to or, if 
245.15 	shown in parentheses, are subtracted from the appropriations in Laws 2025, First Special 
245.16 	Session chapter 9, article 14, from the general fund or any fund named for the purposes 
245.17 	specified in this article, to be available for the fiscal year indicated for each purpose. The 
245.18 	figures "2026" and "2027" used in this article mean that the appropriations listed under them 
245.19 	are available for the fiscal years ending June 30, 2026, or June 30, 2027, respectively. "The 
245.20 	first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium" is 
245.21 	fiscal years 2026 and 2027.

245.22				APPROPRIATIONS
	
245.23				Available for the Year
	
245.24				Ending June 30
	
245.25					2026
		2027

245.26	Sec. 2. ATTORNEY GENERAL
 	$
	-0-
	$
	1,230,000
	
245.27 	$1,230,000 in fiscal year 2027 is for the 
245.28 	Medicaid Fraud Unit. This is a onetime 
245.29 	appropriation.

245.30
245.31	Sec. 3. DEPARTMENT OF CHILDREN, 
YOUTH, AND FAMILIES

245.32
245.33	Subdivision 1.Operations and Administration: 
Agency-wide Supports
 	$
	-0-
	$
	3,304,000

246.1
246.2
246.3	Subd. 2.Assessment of State, County, and Tribal 
Nation Roles in Administering Human Services 
Programs
 					
246.4 	$2,500,000 in fiscal year 2027 is for an 
246.5 	assessment of state, county, and Tribal Nation 
246.6 	roles in administering human services 
246.7 	programs. This is a onetime appropriation and 
246.8 	is available until June 30, 2029.

	ARTICLE 1	HEALTH CARE........	Page.Ln 2.16	
	ARTICLE 2	DEPARTMENT OF HUMAN SERVICES OFFICE OF INSPECTOR GENERAL POLICY........	Page.Ln 60.1	
	ARTICLE 3	BACKGROUND STUDIES........	Page.Ln 113.8	
	ARTICLE 4	BEHAVIORAL HEALTH........	Page.Ln 121.4	
	ARTICLE 5	UNIFORM SERVICE STANDARDS........	Page.Ln 130.14	
	ARTICLE 6	AGING AND DISABILITY SERVICES........	Page.Ln 191.24	
	ARTICLE 7	MISCELLANEOUS........	Page.Ln 226.1	
	ARTICLE 8	DEPARTMENT OF HUMAN SERVICES APPROPRIATIONS........	Page.Ln 242.12	
	ARTICLE 9	OTHER AGENCY APPROPRIATIONS........	Page.Ln 245.11	

APPENDIX 

Repealed Minnesota Statutes: H4338-1 

245.735 CERTIFIED COMMUNITY BEHAVIORAL HEALTH CLINIC SERVICES.Subd. 1a.Definitions. 
(a) For the purposes of this section, the terms in this subdivision have the meanings given. 

(b) "Alcohol and drug counselor" has the meaning given in section 245G.11, subdivision 5. 

(c) "Care coordination" means the activities required to coordinate care across settings and providers for a person served to ensure seamless transitions across the full spectrum of health services. Care coordination includes outreach and engagement; documenting a plan of care for medical, behavioral health, and social services and supports in the integrated treatment plan; assisting with obtaining appointments; confirming appointments are kept; developing a crisis plan; tracking medication; and implementing care coordination agreements with external providers. Care coordination may include psychiatric consultation with primary care practitioners and with mental health clinical care practitioners. 

(d) "Community needs assessment" means an assessment to identify community needs and determine the community behavioral health clinic's capacity to address the needs of the population being served. 

(e) "Comprehensive evaluation" means a person-centered, family-centered, and trauma-informed evaluation meeting the requirements of subdivision 4b completed for the purposes of diagnosis and treatment planning. 

(f) "Designated collaborating organization" means an entity meeting the requirements of subdivision 3a with a formal agreement with a CCBHC to furnish CCBHC services. 

(g) "Functional assessment" means an assessment of a client's current level of functioning relative to functioning that is appropriate for someone the client's age and that meets the requirements of subdivision 4a. 

(h) "Initial evaluation" means an evaluation completed by a mental health professional that gathers and documents information necessary to formulate a preliminary diagnosis and begin client services. 

(i) "Integrated treatment plan" means a documented plan of care that is person- and family-centered and formulated to respond to a client's needs and goals. 

(j) "Mental health professional" has the meaning given in section 245I.04, subdivision 2. 

(k) "Mobile crisis services" has the meaning given in section 256B.0624, subdivision 2. 

(l) "Preliminary screening and risk assessment" means a mandatory screening and risk assessment that is completed at the first contact with the prospective CCBHC service recipient and determines the acuity of client need. 

Subd. 2a.Establishment. 
The certified community behavioral health clinic model is an integrated payment and service delivery model that uses evidence-based behavioral health practices to achieve better outcomes for individuals experiencing behavioral health concerns while achieving sustainable rates for providers and economic efficiencies for payors. 

Subd. 3.Certified community behavioral health clinics. 
(a) The commissioner shall establish state certification and recertification processes for certified community behavioral health clinics (CCBHCs) that satisfy all federal requirements necessary for CCBHCs certified under this section to be eligible for reimbursement under medical assistance, without service area limits based on geographic area or region. The commissioner shall consult with CCBHC stakeholders before establishing and implementing changes in the certification or recertification process and requirements. Any changes to the certification or recertification process or requirements must be consistent with the most recently issued Certified Community Behavioral Health Clinic Certification Criteria published by the Substance Abuse and Mental Health Services Administration. The commissioner must allow a transition period for CCBHCs to meet the revised criteria on or before January 1, 2025. The commissioner is authorized to amend the state's Medicaid state plan or the terms of the demonstration to comply with federal requirements. 

(b) As part of the state CCBHC certification and recertification processes, the commissioner shall provide to entities applying for certification or requesting recertification the standard requirements of the community needs assessment and the staffing plan that are consistent with the most recently issued Certified Community Behavioral Health Clinic Certification Criteria published by the Substance Abuse and Mental Health Services Administration. 

(c) The commissioner shall schedule a certification review that includes a site visit within 90 calendar days of receipt of an application for certification or recertification. 

(d) Entities that choose to be CCBHCs must: 

(1) complete a community needs assessment and complete a staffing plan that is responsive to the needs identified in the community needs assessment and update both the community needs assessment and the staffing plan no less frequently than every 36 months; 

(2) comply with state licensing requirements and other requirements issued by the commissioner; 

(3) employ or contract with a medical director. A medical director must be a physician licensed under chapter 147 and either certified by the American Board of Psychiatry and Neurology, certified by the American Osteopathic Board of Neurology and Psychiatry, or eligible for board certification in psychiatry. A registered nurse who is licensed under sections 148.171 to 148.285 and is certified as a nurse practitioner in adult or family psychiatric and mental health nursing by a national nurse certification organization may serve as the medical director when a CCBHC is unable to employ or contract a qualified physician; 

(4) employ or contract for clinic staff who have backgrounds in diverse disciplines, including licensed mental health professionals and licensed alcohol and drug counselors, and staff who are culturally and linguistically trained to meet the needs of the population the clinic serves; 

(5) ensure that clinic services are available and accessible to individuals and families of all ages and genders with access on evenings and weekends and that crisis management services are available 24 hours per day; 

(6) establish fees for clinic services for individuals who are not enrolled in medical assistance using a sliding fee scale that ensures that services to patients are not denied or limited due to an individual's inability to pay for services; 

(7) comply with quality assurance reporting requirements and other reporting requirements included in the most recently issued Certified Community Behavioral Health Clinic Certification Criteria published by the Substance Abuse and Mental Health Services Administration; 

(8) provide crisis mental health and substance use services, withdrawal management services, emergency crisis intervention services, and stabilization services through existing mobile crisis services; screening, assessment, and diagnosis services, including risk assessments and level of care determinations; person- and family-centered treatment planning; outpatient mental health and substance use services; targeted case management; psychiatric rehabilitation services; peer support and counselor services and family support services; and intensive community-based mental health services, including mental health services for members of the armed forces and veterans. CCBHCs must directly provide the majority of these services to enrollees, but may coordinate some services with another entity through a collaboration or agreement, pursuant to subdivision 3a; 

(9) provide coordination of care across settings and providers to ensure seamless transitions for individuals being served across the full spectrum of health services, including acute, chronic, and behavioral needs; 

(10) be certified as a mental health clinic under section 245I.20; 

(11) comply with standards established by the commissioner relating to CCBHC screenings, assessments, and evaluations that are consistent with this section; 

(12) be licensed to provide substance use disorder treatment under chapter 245G; 

(13) be certified to provide children's therapeutic services and supports under section 256B.0943; 

(14) be certified to provide adult rehabilitative mental health services under section 256B.0623; 

(15) be enrolled to provide mental health crisis response services under section 256B.0624; 

(16) be enrolled to provide mental health targeted case management under section 256B.0625, subdivision 20; 

(17) provide services that comply with the evidence-based practices described in subdivision 3d; 

(18) provide peer services as defined in sections 256B.0615, 256B.0616, and 245G.07, subdivision 2a, paragraph (b), clause (2), as applicable when peer services are provided; and 

(19) inform all clients upon initiation of care of the full array of services available under the CCBHC model. 

Subd. 3a.Designated collaborating organizations. 
If a certified CCBHC is unable to provide one or more of the services listed in subdivision 3, paragraph (d), clauses (8) to (19), the CCBHC may contract with another entity that has the required authority to provide that service and that meets the requirements of the most recently issued Certified Community Behavioral Health Clinic Certification Criteria published by the Substance Abuse and Mental Health Services Administration. 

Subd. 3b.Exemptions to host county approval. 
Notwithstanding any other law that requires a county contract or other form of county approval for a service listed in subdivision 3, paragraph (d), clause (8), a CCBHC that meets the requirements of this section may receive the prospective payment under section 256B.0625, subdivision 5m, for that service without a county contract or county approval. 

Subd. 3c.Variances. 
When the standards listed in this section or other applicable standards conflict or address similar issues in duplicative or incompatible ways, the commissioner may grant variances to state requirements if the variances do not conflict with federal requirements for services reimbursed under medical assistance. If standards overlap, the commissioner may substitute all or a part of a licensure or certification that is substantially the same as another licensure or certification. The commissioner shall consult with stakeholders before granting variances under this provision. For a CCBHC that is certified but not approved for prospective payment under section 256B.0625, subdivision 5m, the commissioner may grant a variance under this paragraph if the variance does not increase the state share of costs. 

Subd. 3d.Evidence-based practices. 
The commissioner shall issue a list of required evidence-based practices to be delivered by CCBHCs and may also provide a list of recommended evidence-based practices. The commissioner may update the list to reflect advances in outcomes research and medical services for persons living with mental illnesses or substance use disorders. The commissioner shall take into consideration the adequacy of evidence to support the efficacy of the practice across cultures and ages, the workforce available, and the current availability of the practice in the state. At least 30 days before issuing the initial list or issuing any revisions, the commissioner shall provide stakeholders with an opportunity to comment. 

Subd. 3e.Recertification. 
A CCBHC must apply for recertification every 36 months. 

Subd. 3f.Notice and opportunity for correction. 
(a) The commissioner shall provide a formal written notice to an applicant for CCBHC certification outlining the determination of the application and process for applicable and necessary corrective action required of the applicant signed by the commissioner or appropriate division director to applicant entities within 45 calendar days of the site visit. 

(b) The commissioner may reject an application if the applicant entity does not take all corrective actions specified in the notice and notify the commissioner that the applicant entity has done so within 60 calendar days. 

(c) The commissioner must send the applicant entity a final decision on the corrected application within 45 calendar days of the applicant entity's notice to the commissioner that the applicant has taken the required corrective actions. 

Subd. 3g.Decertification process. 
The commissioner must establish a process for decertification. The commissioner must require corrective action, medical assistance repayment, or decertification of a CCBHC that no longer meets the requirements in this section or that fails to meet the standards provided by the commissioner in the application, certification, or recertification process. 

Subd. 3h.Minimum staffing standards. 
A CCBHC must meet minimum staffing requirements required by the most recently issued Certified Community Behavioral Health Clinic Certification Criteria published by the Substance Abuse and Mental Health Services Administration. 

Subd. 4a.Functional assessment requirements. 
(a) For adults, a functional assessment may be completed using a Daily Living Activities-20 tool. 

(b) Notwithstanding any law to the contrary, a functional assessment performed by a CCBHC that meets the requirements of this subdivision satisfies the requirements in: 

(1) section 256B.0623, subdivision 9; 

(2) section 245.4711, subdivision 3; and 

(3) Minnesota Rules, part 9520.0914, subpart 2. 

Subd. 4b.Requirements for comprehensive evaluations. 
(a) A comprehensive evaluation must be completed for all new clients within 60 calendar days following the preliminary screening and risk assessment. 

(b) Only a mental health professional may complete a comprehensive evaluation. The mental health professional must consult with an alcohol and drug counselor when substance use disorder services are deemed clinically appropriate. 

(c) The comprehensive evaluation must consist of the synthesis of existing information including but not limited to an external diagnostic assessment, crisis assessment, preliminary screening and risk assessment, initial evaluation, and primary care screenings. 

(d) A comprehensive evaluation must be completed in the cultural context of the client and updated to reflect changes in the client's conditions and at the client's request or when the client's condition no longer meets the existing diagnosis. 

(e) The psychiatric evaluation and management service fulfills requirements for the comprehensive evaluation when a client of a CCBHC is receiving exclusively psychiatric evaluation and management services. The CCBHC shall complete the comprehensive evaluation within 60 calendar days of a client's referral for additional CCBHC services. 

(f) For clients engaging exclusively in substance use disorder services at the CCBHC, a substance use disorder comprehensive assessment as defined in section 245G.05, subdivision 2, that is completed within 60 calendar days of service initiation shall fulfill requirements of the comprehensive evaluation. 

(g) Notwithstanding any law to the contrary, a comprehensive evaluation performed by a CCBHC that meets the requirements of this subdivision satisfies the requirements in: 

(1) section 245.462, subdivision 20, paragraph (c); 

(2) section 245.4711, subdivision 2, paragraph (b); 

(3) section 245.4871, subdivision 6; 

(4) section 245.4881, subdivision 2, paragraph (c); 

(5) section 245G.04, subdivision 1; 

(6) section 245G.05, subdivision 1; 

(7) section 245I.10, subdivisions 4 to 6; 

(8) section 256B.0623, subdivisions 3, clause (4), 8, and 10; 

(9) section 256B.0943, subdivisions 3 and 6, paragraph (b), clause (1); 

(10) Minnesota Rules, part 9520.0909, subpart 1; 

(11) Minnesota Rules, part 9520.0910, subparts 1 and 2; and 

(12) Minnesota Rules, part 9520.0914, subpart 2. 

Subd. 4c.Requirements for initial evaluations. 
(a) A CCBHC must complete either an initial evaluation or a comprehensive evaluation as required by the most recently issued Certified Community Behavioral Health Clinic Certification Criteria published by the Substance Abuse and Mental Health Services Administration. 

(b) Notwithstanding any law to the contrary, an initial evaluation performed by a CCBHC that meets the requirements of this subdivision satisfies the requirements in: 

(1) section 245.4711, subdivision 4; 

(2) section 245.4881, subdivisions 3 and 4; 

(3) section 245I.10, subdivision 5; 

(4) section 256B.0623, subdivisions 3, clause (4), 8, and 10; 

(5) section 256B.0943, subdivisions 3 and 6, paragraph (b), clauses (1) and (2); 

(6) Minnesota Rules, part 9520.0909, subpart 1; 

(7) Minnesota Rules, part 9520.0910, subpart 1; 

(8) Minnesota Rules, part 9520.0914, subpart 2; 

(9) Minnesota Rules, part 9520.0918, subparts 1 and 2; and 

(10) Minnesota Rules, part 9520.0919, subpart 2. 

Subd. 4d.Requirements for integrated treatment plans. 
(a) An integrated treatment plan must be completed within 60 calendar days following the preliminary screening and risk assessment and updated no less frequently than every six months or when the client's circumstances change. 

(b) Only a mental health professional may complete an integrated treatment plan. The mental health professional must consult with an alcohol and drug counselor when substance use disorder services are deemed clinically appropriate. An alcohol and drug counselor may approve the integrated treatment plan. The integrated treatment plan must be developed through a shared decision-making process with the client, the client's support system if the client chooses, or, for children, with the family or caregivers. 

(c) The integrated treatment plan must: 

(1) use the ASAM 6 dimensional framework; and 

(2) incorporate prevention, medical and behavioral health needs, and service delivery. 

(d) The psychiatric evaluation and management service fulfills requirements for the integrated treatment plan when a client of a CCBHC is receiving exclusively psychiatric evaluation and management services. The CCBHC must complete an integrated treatment plan within 60 calendar days of a client's referral for additional CCBHC services. 

(e) Notwithstanding any law to the contrary, an integrated treatment plan developed by a CCBHC that meets the requirements of this subdivision satisfies the requirements in: 

(1) section 245G.06, subdivision 1; 

(2) section 245G.09, subdivision 3, paragraph (a), clause (6); 

(3) section 245I.10, subdivisions 7 and 8; and 

(4) section 256B.0943, subdivision 6, paragraph (b), clause (2). 

Subd. 4e.Additional licensing and certification requirements. 
(a) This subdivision applies to programs and clinics that are a part of a CCBHC. 

(b) The requirements for initial evaluations under subdivision 4c, comprehensive evaluations under subdivision 4b, and integrated treatment plans under subdivision 4d are incorporated into the licensing requirements for substance use disorder treatment programs under chapter 245G. 

(c) The requirements for initial evaluations under subdivision 4c, comprehensive evaluations under subdivision 4b, and integrated treatment plans under subdivision 4d are incorporated into the certification requirements for mental health clinics under section 245I.20. 

(d) The Department of Human Services licensing division will review, inspect, and investigate for compliance with the requirements in subdivisions 4b to 4d for programs or clinics subject to this subdivision. 

Subd. 7.Addition of CCBHCs to section 223 state demonstration programs. 
(a) If the commissioner's request under subdivision 6 to reenter the demonstration program established by section 223 of the Protecting Access to Medicare Act is approved, upon reentry the commissioner must follow all federal guidance on the addition of CCBHCs to section 223 state demonstration programs. 

(b) Prior to participating in the demonstration, a CCBHC must meet the demonstration certification criteria and prospective payment system guidance in effect at that time and be certified as a CCBHC by the state. The Substance Abuse and Mental Health Services Administration attestation process for CCBHC expansion grants is not sufficient to constitute state certification. CCBHCs newly added to the demonstration must participate in all aspects of the state demonstration program, including but not limited to quality measurement and reporting, evaluation activities, and state CCBHC demonstration program requirements, such as use of state-specified evidence-based practices. A newly added CCBHC must report on quality measures before its first full demonstration year if it joined the demonstration program in calendar year 2023 out of alignment with the state's demonstration year cycle. A CCBHC may provide services in multiple locations and in community-based settings subject to federal rules of the 223 demonstration authority or Medicaid state plan authority. 

(c) If a CCBHC meets the definition of a satellite facility, as defined by the Substance Abuse and Mental Health Services Administration, and was established after April 1, 2014, the CCBHC cannot receive payment as a part of the demonstration program. 

Subd. 8.Grievance procedures required. 
CCBHCs and designated collaborating organizations must allow all service recipients access to grievance procedures, which must satisfy the minimum requirements of medical assistance and other grievance requirements such as those that may be mandated by relevant accrediting entities. 

245A.10 FEES.Subd. 3a.Fee for change of ownership exception. 
(a) A license holder must submit a fee of $2,100 for each license subject to the change in ownership exception under section 245A.043, subdivision 2, paragraph (b). 

(b) License holders under chapter 245D must submit a fee of $4,200 for each license subject to the change in ownership exception under section 245A.043, subdivision 2, paragraph (b). 

(c) A license holder for a children's residential facility must submit a fee of $500 for each license subject to the change in ownership exception under section 245A.043, subdivision 2, paragraph (b). 

245C.03 BACKGROUND STUDY; INDIVIDUALS TO BE STUDIED.Subd. 7.Children's therapeutic services and supports providers. 
The commissioner shall conduct background studies of all direct service providers and volunteers for children's therapeutic services and supports providers under section 256B.0943. 

245I.20 MENTAL HEALTH CLINIC.Subd. 9.Quality assurance and improvement plan. 
(a) At a minimum, a certification holder must develop a written quality assurance and improvement plan that includes a plan for: 

(1) encouraging ongoing consultation among members of the treatment team; 

(2) obtaining and evaluating feedback about services from clients, family and other natural supports, referral sources, and staff persons; 

(3) measuring and evaluating client outcomes; 

(4) reviewing client suicide deaths and suicide attempts; 

(5) examining the quality of clinical service delivery to clients; and 

(6) self-monitoring of compliance with this chapter. 

(b) At least annually, the certification holder must review, evaluate, and update the quality assurance and improvement plan. The review must: (1) include documentation of the actions that the certification holder will take as a result of information obtained from monitoring activities in the plan; and (2) establish goals for improved service delivery to clients for the next year. 

245I.23 INTENSIVE RESIDENTIAL TREATMENT SERVICES AND RESIDENTIAL CRISIS STABILIZATION.Subd. 23.Quality assurance and improvement plan. 
(a) A license holder must develop a written quality assurance and improvement plan that includes a plan to: 

(1) encourage ongoing consultation between members of the treatment team; 

(2) obtain and evaluate feedback about services from clients, family and other natural supports, referral sources, and staff persons; 

(3) measure and evaluate client outcomes in the program; 

(4) review critical incidents in the program; 

(5) examine the quality of clinical services in the program; and 

(6) self-monitor the license holder's compliance with this chapter. 

(b) At least annually, the license holder must review, evaluate, and update the license holder's quality assurance and improvement plan. The license holder's review must: 

(1) document the actions that the license holder will take in response to the information that the license holder obtains from the monitoring activities in the plan; and 

(2) establish goals for improving the license holder's services to clients during the next year. 

256B.055 ELIGIBILITY CATEGORIES.Subd. 14.Persons detained by law. 
(a) Medical assistance may be paid for an inmate of a correctional facility who is conditionally released as authorized under section 241.26, 244.065, or 631.425, if the individual does not require the security of a public detention facility and is housed in a halfway house or community correction center, or under house arrest and monitored by electronic surveillance in a residence approved by the commissioner of corrections, and if the individual meets the other eligibility requirements of this chapter. 

(b) An individual who is enrolled in medical assistance, and who is charged with a crime and incarcerated for less than 12 months shall be suspended from eligibility at the time of incarceration until the individual is released. Upon release, medical assistance eligibility is reinstated without reapplication using a reinstatement process and form, if the individual is otherwise eligible. 

(c) An individual, regardless of age, who is considered an inmate of a public institution as defined in Code of Federal Regulations, title 42, section 435.1010, and who meets the eligibility requirements in section 256B.056, is not eligible for medical assistance, except for covered services received while an inpatient in a medical institution as defined in Code of Federal Regulations, title 42, section 435.1010. Security issues, including costs, related to the inpatient treatment of an inmate are the responsibility of the entity with jurisdiction over the inmate. 

256B.0623 ADULT REHABILITATIVE MENTAL HEALTH SERVICES COVERED.Subd. 2.Definitions. 
For purposes of this section, the following terms have the meanings given them. 

(a) "Adult rehabilitative mental health services" means the services described in section 245I.02, subdivision 33. 

(b) "Medication education services" means services provided individually or in groups which focus on educating the recipient about mental illness and symptoms; the role and effects of medications in treating symptoms of mental illness; and the side effects of medications. Medication education is coordinated with medication management services and does not duplicate it. Medication education services are provided by physicians, advanced practice registered nurses, pharmacists, physician assistants, or registered nurses. 

(c) "Transition to community living services" means services which maintain continuity of contact between the rehabilitation services provider and the recipient and which facilitate discharge from a hospital, residential treatment program, board and lodging facility, or nursing home. Transition to community living services are not intended to provide other areas of adult rehabilitative mental health services. 

Subd. 4.Provider entity standards. 
(a) The provider entity must be certified by the state following the certification process and procedures developed by the commissioner. 

(b) The certification process is a determination as to whether the entity meets the standards in this section and chapter 245I, as required in section 245I.011, subdivision 5. The certification must specify which adult rehabilitative mental health services the entity is qualified to provide. 

(c) State-level recertification must occur at least every three years. 

(d) The commissioner may intervene at any time and decertify providers with cause. The decertification is subject to appeal to the state. A county board may recommend that the state decertify a provider for cause. 

(e) The adult rehabilitative mental health services provider entity must meet the following standards: 

(1) have capacity to recruit, hire, manage, and train qualified staff; 

(2) have adequate administrative ability to ensure availability of services; 

(3) ensure that staff are skilled in the delivery of the specific adult rehabilitative mental health services provided to the individual eligible recipient; 

(4) ensure enough flexibility in service delivery to respond to the changing and intermittent care needs of a recipient as identified by the recipient and the individual treatment plan; 

(5) assist the recipient in arranging needed crisis assessment, intervention, and stabilization services; 

(6) ensure that services are coordinated with other recipient mental health services providers and the county mental health authority and the federally recognized American Indian authority and necessary others after obtaining the consent of the recipient. Services must also be coordinated with the recipient's case manager or care coordinator if the recipient is receiving case management or care coordination services; 

(7) keep all necessary records required by law; 

(8) deliver services as required by section 245.461; 

(9) be an enrolled Medicaid provider; and 

(10) maintain a quality assurance plan to determine specific service outcomes and the recipient's satisfaction with services. 

Subd. 5.Qualifications of provider staff. 
 Adult rehabilitative mental health services must be provided by qualified individual provider staff of a certified provider entity. Individual provider staff must be qualified as: 

(1) a mental health professional who is qualified according to section 245I.04, subdivision 2; 

(2) a certified rehabilitation specialist who is qualified according to section 245I.04, subdivision 8; 

(3) a clinical trainee who is qualified according to section 245I.04, subdivision 6; 

(4) a mental health practitioner qualified according to section 245I.04, subdivision 4; 

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

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

(7) a licensed occupational therapist, as defined in section 148.6402, subdivision 14. 

Subd. 6.Required supervision. 
(a) A treatment supervisor providing treatment supervision required by section 245I.06 must: 

(1) meet with staff receiving treatment supervision at least monthly to discuss treatment topics of interest and treatment plans of recipients; and 

(2) meet at least monthly with the directing clinical trainee or mental health practitioner, if there is one, to review needs of the adult rehabilitative mental health services program, review staff on-site observations and evaluate mental health rehabilitation workers, plan staff training, review program evaluation and development, and consult with the directing clinical trainee or mental health practitioner. 

(b) An adult rehabilitative mental health services provider entity must have a treatment director who is a mental health professional, clinical trainee, certified rehabilitation specialist, or mental health practitioner. The treatment director must: 

(1) ensure the direct observation of mental health rehabilitation workers required by section 245I.06, subdivision 3, is provided; 

(2) ensure immediate availability by phone or in person for consultation by a mental health professional, certified rehabilitation specialist, clinical trainee, or a mental health practitioner to the mental health rehabilitation worker during service provision; 

(3) model service practices which: respect the recipient, include the recipient in planning and implementation of the individual treatment plan, recognize the recipient's strengths, collaborate and coordinate with other involved parties and providers; 

(4) ensure that clinical trainees, mental health practitioners, and mental health rehabilitation workers are able to effectively communicate with the recipients, significant others, and providers; and 

(5) oversee the record of the results of direct observation, progress note evaluation, and corrective actions taken to modify the work of the clinical trainees, mental health practitioners, and mental health rehabilitation workers. 

(c) A clinical trainee or mental health practitioner who is providing treatment direction for a provider entity must receive treatment supervision at least monthly to: 

(1) identify and plan for general needs of the recipient population served; 

(2) identify and plan to address provider entity program needs and effectiveness; 

(3) identify and plan provider entity staff training and personnel needs and issues; and 

(4) plan, implement, and evaluate provider entity quality improvement programs. 

Subd. 9.Functional assessment. 
(a) Providers of adult rehabilitative mental health services must complete a written functional assessment according to section 245I.10, subdivision 9, for each recipient. 

(b) When a provider of adult rehabilitative mental health services completes a written functional assessment, the provider must also complete a level of care assessment as defined in section 245I.02, subdivision 19, for the recipient. 

256B.0624 CRISIS RESPONSE SERVICES COVERED.Subd. 2.Definitions. 
For purposes of this section, the following terms have the meanings given them. 

(a) "Certified rehabilitation specialist" means a staff person who is qualified under section 245I.04, subdivision 8. 

(b) "Clinical trainee" means a staff person who is qualified under section 245I.04, subdivision 6. 

(c) "Crisis assessment" means an immediate face-to-face assessment by a physician, a mental health professional, or a qualified member of a crisis team, as described in subdivision 6a. 

(d) "Crisis intervention" means face-to-face, short-term intensive mental health services initiated during a mental health crisis to help the recipient cope with immediate stressors, identify and utilize available resources and strengths, engage in voluntary treatment, and begin to return to the recipient's baseline level of functioning. 

(e) "Crisis screening" means a screening of a client's potential mental health crisis situation under subdivision 6. 

(f) "Crisis stabilization" means individualized mental health services provided to a recipient that are designed to restore the recipient to the recipient's prior functional level. Crisis stabilization services may be provided in the recipient's home, the home of a family member or friend of the recipient, another community setting, a short-term supervised, licensed residential program, or an emergency department. Crisis stabilization services includes family psychoeducation. 

(g) "Crisis team" means the staff of a provider entity who are supervised and prepared to provide mobile crisis services to a client in a potential mental health crisis situation. 

(h) "Mental health certified family peer specialist" means a staff person who is qualified under section 245I.04, subdivision 12. 

(i) "Mental health certified peer specialist" means a staff person who is qualified under section 245I.04, subdivision 10. 

(j) "Mental health crisis" is a behavioral, emotional, or psychiatric situation that, without the provision of crisis response services, would likely result in significantly reducing the recipient's levels of functioning in primary activities of daily living, in an emergency situation under section 62Q.55, or in the placement of the recipient in a more restrictive setting, including but not limited to inpatient hospitalization. 

(k) "Mental health practitioner" means a staff person who is qualified under section 245I.04, subdivision 4. 

(l) "Mental health professional" means a staff person who is qualified under section 245I.04, subdivision 2. 

(m) "Mental health rehabilitation worker" means a staff person who is qualified under section 245I.04, subdivision 14. 

(n) "Mobile crisis services" means screening, assessment, intervention, and community-based stabilization, excluding residential crisis stabilization, that is provided to a recipient. 

Subd. 3.Eligibility. 
(a) A recipient is eligible for crisis assessment services when the recipient has screened positive for a potential mental health crisis during a crisis screening. 

(b) A recipient is eligible for crisis intervention services and crisis stabilization services when the recipient has been assessed during a crisis assessment to be experiencing a mental health crisis. 

Subd. 4a.Alternative provider standards. 
If a county or Tribe demonstrates that, due to geographic or other barriers, it is not feasible to provide mobile crisis intervention services according to the standards in subdivision 4, paragraph (b), the commissioner may approve an alternative plan proposed by a county or Tribe. The alternative plan must: 

(1) result in increased access and a reduction in disparities in the availability of mobile crisis services; 

(2) provide mobile crisis services outside of the usual nine-to-five office hours and on weekends and holidays; and 

(3) comply with standards for emergency mental health services in section 245.469. 

Subd. 5. Crisis assessment and intervention staff qualifications. 
(a) Qualified individual staff of a qualified provider entity must provide crisis assessment and intervention services to a recipient. A staff member providing crisis assessment and intervention services to a recipient must be qualified as a: 

(1) mental health professional; 

(2) clinical trainee; 

(3) mental health practitioner; 

(4) mental health certified family peer specialist; or 

(5) mental health certified peer specialist. 

(b) When crisis assessment and intervention services are provided to a recipient in the community, a mental health professional, clinical trainee, or mental health practitioner must lead the response. 

(c) The 30 hours of ongoing training required by section 245I.05, subdivision 4, paragraph (b), must be specific to providing crisis services to children and adults and include training about evidence-based practices identified by the commissioner of health to reduce the recipient's risk of suicide and self-injurious behavior. 

(d) At least six hours of the ongoing training under paragraph (c) must be specific to working with families and providing crisis stabilization services to children and include the following topics: 

(1) developmental tasks of childhood and adolescence; 

(2) family relationships; 

(3) child and youth engagement and motivation, including motivational interviewing; 

(4) culturally responsive care, including care for lesbian, gay, bisexual, transgender, and queer youth; 

(5) positive behavior support; 

(6) crisis intervention for youth with developmental disabilities; 

(7) child traumatic stress, trauma-informed care, and trauma-focused cognitive behavioral therapy; and 

(8) youth substance use. 

(e) Team members must be experienced in crisis assessment, crisis intervention techniques, treatment engagement strategies, working with families, and clinical decision-making under emergency conditions and have knowledge of local services and resources. 

Subd. 6.Crisis screening. 
(a) The crisis screening may use the resources of emergency services as defined in section 245.469, subdivisions 1 and 2. The crisis screening must gather information, determine whether a mental health crisis situation exists, identify parties involved, and determine an appropriate response. 

(b) When conducting the crisis screening of a recipient, a provider must: 

(1) employ evidence-based practices to reduce the recipient's risk of suicide and self-injurious behavior; 

(2) work with the recipient to establish a plan and time frame for responding to the recipient's mental health crisis, including responding to the recipient's immediate need for support by telephone or text message until the provider can respond to the recipient face-to-face; 

(3) document significant factors in determining whether the recipient is experiencing a mental health crisis, including prior requests for crisis services, a recipient's recent presentation at an emergency department, known calls to 911 or law enforcement, or information from third parties with knowledge of a recipient's history or current needs; 

(4) accept calls from interested third parties and consider the additional needs or potential mental health crises that the third parties may be experiencing; 

(5) provide psychoeducation, including means reduction, to relevant third parties including family members or other persons living with the recipient; and 

(6) consider other available services to determine which service intervention would best address the recipient's needs and circumstances. 

(c) For the purposes of this section, the following situations indicate a positive screen for a potential mental health crisis and the provider must prioritize providing a face-to-face crisis assessment of the recipient, unless a provider documents specific evidence to show why this was not possible, including insufficient staffing resources, concerns for staff or recipient safety, or other clinical factors: 

(1) the recipient presents at an emergency department or urgent care setting and the health care team at that location requested crisis services; or 

(2) a peace officer requested crisis services for a recipient who is potentially subject to transportation under section 253B.051. 

(d) A provider is not required to have direct contact with the recipient to determine that the recipient is experiencing a potential mental health crisis. A mobile crisis provider may gather relevant information about the recipient from a third party to establish the recipient's need for services and potential safety factors. 

Subd. 6a.Crisis assessment. 
(a) If a recipient screens positive for a potential mental health crisis, a crisis assessment must be completed. A crisis assessment evaluates any immediate needs for which services are needed and, as time permits, the recipient's current life situation, health information, including current medications, sources of stress, mental health problems and symptoms, strengths, cultural considerations, support network, vulnerabilities, current functioning, and the recipient's preferences as communicated directly by the recipient, or as communicated in a health care directive as described in chapters 145C and 253B, the crisis treatment plan described under subdivision 11, a crisis prevention plan, or a wellness recovery action plan. 

(b) A provider must conduct a crisis assessment at the recipient's location whenever possible. 

(c) Whenever possible, the assessor must attempt to include input from the recipient and the recipient's family and other natural supports to assess whether a crisis exists. 

(d) A crisis assessment includes: (1) determining (i) whether the recipient is willing to voluntarily engage in treatment, or (ii) whether the recipient has an advance directive, and (2) gathering the recipient's information and history from involved family or other natural supports. 

(e) A crisis assessment must include coordinated response with other health care providers if the assessment indicates that a recipient needs detoxification, withdrawal management, or medical stabilization in addition to crisis response services. If the recipient does not need an acute level of care, a team must serve an otherwise eligible recipient who has a co-occurring substance use disorder. 

(f) If, after completing a crisis assessment of a recipient, a provider refers a recipient to an intensive setting, including an emergency department, inpatient hospitalization, or residential crisis stabilization, one of the crisis team members who completed or conferred about the recipient's crisis assessment must immediately contact the referral entity and consult with the triage nurse or other staff responsible for intake at the referral entity. During the consultation, the crisis team member must convey key findings or concerns that led to the recipient's referral. Following the immediate consultation, the provider must also send written documentation upon completion. The provider must document if these releases occurred with authorization by the recipient, the recipient's legal guardian, or as allowed by section 144.293, subdivision 5. 

Subd. 6b.Crisis intervention services. 
(a) If the crisis assessment determines mobile crisis intervention services are needed, the crisis intervention services must be provided promptly. As opportunity presents during the intervention, at least two members of the mobile crisis intervention team must confer directly or by telephone about the crisis assessment, crisis treatment plan, and actions taken and needed. At least one of the team members must be providing face-to-face crisis intervention services. If providing crisis intervention services, a clinical trainee or mental health practitioner must seek treatment supervision as required in subdivision 9. 

(b) If a provider delivers crisis intervention services while the recipient is absent, the provider must document the reason for delivering services while the recipient is absent. 

(c) The mobile crisis intervention team must develop a crisis treatment plan according to subdivision 11. 

(d) The mobile crisis intervention team must document which crisis treatment plan goals and objectives have been met and when no further crisis intervention services are required. 

(e) If the recipient's mental health crisis is stabilized, but the recipient needs a referral to other services, the team must provide referrals to these services. If the recipient has a case manager, planning for other services must be coordinated with the case manager. If the recipient is unable to follow up on the referral, the team must link the recipient to the service and follow up to ensure the recipient is receiving the service. 

(f) If the recipient's mental health crisis is stabilized and the recipient does not have an advance directive, the case manager or crisis team shall offer to work with the recipient to develop one. 

Subd. 7.Crisis stabilization services. 
(a) Crisis stabilization services must be provided by qualified staff of a crisis stabilization services provider entity and must meet the following standards: 

(1) a crisis treatment plan must be developed that meets the criteria in subdivision 11; 

(2) staff must be qualified as defined in subdivision 8; 

(3) crisis stabilization services must be delivered according to the crisis treatment plan and include face-to-face contact with the recipient by qualified staff for further assessment, help with referrals, updating of the crisis treatment plan, skills training, and collaboration with other service providers in the community; and 

(4) if a provider delivers crisis stabilization services while the recipient is absent, the provider must document the reason for delivering services while the recipient is absent. 

(b) If crisis stabilization services are provided in a supervised, licensed residential setting that serves no more than four adult residents, and one or more individuals are present at the setting to receive residential crisis stabilization, the residential staff must include, for at least eight hours per day, at least one mental health professional, clinical trainee, certified rehabilitation specialist, or mental health practitioner. The commissioner shall establish a statewide per diem rate for crisis stabilization services provided under this paragraph to medical assistance enrollees. The rate for a provider shall not exceed the rate charged by that provider for the same service to other payers. Payment shall not be made to more than one entity for each individual for services provided under this paragraph on a given day. The commissioner shall set rates prospectively for the annual rate period. The commissioner shall require providers to submit annual cost reports on a uniform cost reporting form and shall use submitted cost reports to inform the rate-setting process. The commissioner shall recalculate the statewide per diem every year. 

Subd. 8. Crisis stabilization staff qualifications. 
(a) Mental health crisis stabilization services must be provided by qualified individual staff of a qualified provider entity. A staff member providing crisis stabilization services to a recipient must be qualified as a: 

(1) mental health professional; 

(2) certified rehabilitation specialist; 

(3) clinical trainee; 

(4) mental health practitioner; 

(5) mental health certified family peer specialist; 

(6) mental health certified peer specialist; or 

(7) mental health rehabilitation worker. 

(b) The 30 hours of ongoing training required in section 245I.05, subdivision 4, paragraph (b), must be specific to providing crisis services to children and adults and include training about evidence-based practices identified by the commissioner of health to reduce a recipient's risk of suicide and self-injurious behavior. 

(c) For providers who deliver care to children 21 years of age and younger, at least six hours of the ongoing training under this subdivision must be specific to working with families and providing crisis stabilization services to children and include the following topics: 

(1) developmental tasks of childhood and adolescence; 

(2) family relationships; 

(3) child and youth engagement and motivation, including motivational interviewing; 

(4) culturally responsive care, including care for lesbian, gay, bisexual, transgender, and queer youth; 

(5) positive behavior support; 

(6) crisis intervention for youth with developmental disabilities; 

(7) child traumatic stress, trauma-informed care, and trauma-focused cognitive behavioral therapy; and 

(8) youth substance use. 

This paragraph does not apply to adult residential crisis stabilization service providers licensed according to section 245I.23. 

Subd. 9.Supervision. 
Clinical trainees and mental health practitioners may provide crisis assessment and crisis intervention services if the following treatment supervision requirements are met: 

(1) the mental health provider entity must accept full responsibility for the services provided; 

(2) the mental health professional of the provider entity must be immediately available by phone or in person for treatment supervision; 

(3) the mental health professional is consulted, in person or by phone, during the first three hours when a clinical trainee or mental health practitioner provides crisis assessment or crisis intervention services; and 

(4) the mental health professional must: 

(i) review and approve, as defined in section 245I.02, subdivision 2, of the tentative crisis assessment and crisis treatment plan within 24 hours of first providing services to the recipient, notwithstanding section 245I.08, subdivision 3; and 

(ii) document the consultation required in clause (3). 

Subd. 11.Crisis treatment plan. 
(a) Within 24 hours of the recipient's admission, the provider entity must complete the recipient's crisis treatment plan. The provider entity must: 

(1) base the recipient's crisis treatment plan on the recipient's crisis assessment; 

(2) consider crisis assistance strategies that have been effective for the recipient in the past; 

(3) for a child recipient, use a child-centered, family-driven, and culturally appropriate planning process that allows the recipient's parents and guardians to observe or participate in the recipient's individual and family treatment services, assessment, and treatment planning; 

(4) for an adult recipient, use a person-centered, culturally appropriate planning process that allows the recipient's family and other natural supports to observe or participate in treatment services, assessment, and treatment planning; 

(5) identify the participants involved in the recipient's treatment planning. The recipient, if possible, must be a participant; 

(6) identify the recipient's initial treatment goals, measurable treatment objectives, and specific interventions that the license holder will use to help the recipient engage in treatment; 

(7) include documentation of referral to and scheduling of services, including specific providers where applicable; 

(8) ensure that the recipient or the recipient's legal guardian approves under section 245I.02, subdivision 2, of the recipient's crisis treatment plan unless a court orders the recipient's treatment plan under chapter 253B. If the recipient or the recipient's legal guardian disagrees with the crisis treatment plan, the license holder must document in the client file the reasons why the recipient disagrees with the crisis treatment plan; and 

(9) ensure that a treatment supervisor approves under section 245I.02, subdivision 2, of the recipient's treatment plan within 24 hours of the recipient's admission if a mental health practitioner or clinical trainee completes the crisis treatment plan, notwithstanding section 245I.08, subdivision 3. 

(b) The provider entity must provide the recipient and the recipient's legal guardian with a copy of the recipient's crisis treatment plan. 

256B.0701 RECUPERATIVE CARE SERVICES.Subd. 11.Requirements for provider enrollment; compliance training. 
(a) Effective January 1, 2027, to enroll as a recuperative care provider, a provider must require all owners of the provider who are active in the day-to-day management and operations of the agency and all managerial and supervisory employees to complete compliance training before applying for enrollment and every three years thereafter. Mandatory compliance training format and content must be determined by the commissioner and must include the following topics: 

(1) state and federal program billing, documentation, and service delivery requirements; 

(2) enrollment requirements; 

(3) provider program integrity, including fraud prevention, detection, and penalties; 

(4) fair labor standards; 

(5) workplace safety requirements; and 

(6) recent changes in service requirements. 

(b) New owners active in day-to-day management and operations of the provider and new managerial and supervisory employees must complete compliance training under this subdivision to be employed by or conduct management and operations activities for the provider. If an individual moves to another recuperative care provider and serves in a similar ownership or employment capacity, the individual is not required to repeat the training required under this subdivision if the individual documents completion of the training within the past three years. 

(c) Any recuperative care provider enrolled before January 1, 2027, must complete the compliance training by January 1, 2028, and every three years thereafter. 

256B.073 ELECTRONIC VISIT VERIFICATION.Subd. 4.Provider requirements. 
(a) A provider of services may select any electronic visit verification system that meets the requirements established by the commissioner. 

(b) All electronic visit verification systems used by providers to comply with the requirements established by the commissioner must provide data to the commissioner in a format and at a frequency to be established by the commissioner. 

(c) Providers must implement the electronic visit verification systems required under this section by a date established by the commissioner to be set after the state-selected electronic visit verification systems for personal care services and home health services are in production. For purposes of this paragraph, "personal care services" and "home health services" have the meanings given in United States Code, title 42, section 1396b(l)(5). Reimbursement rates for providers must not be reduced as a result of federal action to reduce the federal medical assistance percentage under the 21st Century Cures Act, Public Law 114-255. 

256B.0943 CHILDREN'S THERAPEUTIC SERVICES AND SUPPORTS.Subdivision 1.Definitions. 
(a) For purposes of this section, the following terms have the meanings given them. 

(b) "Children's therapeutic services and supports" means the flexible package of mental health services for children who require varying therapeutic and rehabilitative levels of intervention to treat a diagnosed mental illness, as defined in section 245.462, subdivision 20, or 245.4871, subdivision 15. The services are time-limited interventions that are delivered using various treatment modalities and combinations of services designed to reach treatment outcomes identified in the individual treatment plan. 

(c) "Clinical trainee" means a staff person who is qualified according to section 245I.04, subdivision 6. 

(d) "Crisis planning" has the meaning given in section 245.4871, subdivision 9a. 

(e) "Culturally competent provider" means a provider who understands and can utilize to a client's benefit the client's culture when providing services to the client. A provider may be culturally competent because the provider is of the same cultural or ethnic group as the client or the provider has developed the knowledge and skills through training and experience to provide services to culturally diverse clients. 

(f) "Day treatment program" for children means a site-based structured mental health program consisting of psychotherapy for three or more individuals and individual or group skills training provided by a team, under the treatment supervision of a mental health professional. 

(g) "Direct service time" means the time that a mental health professional, clinical trainee, mental health practitioner, or mental health behavioral aide spends face-to-face with a client and the client's family or providing covered services through telehealth as defined under section 256B.0625, subdivision 3b. Direct service time includes time in which the provider obtains a client's history, develops a client's treatment plan, records individual treatment outcomes, or provides service components of children's therapeutic services and supports. Direct service time does not include time doing work before and after providing direct services, including scheduling or maintaining clinical records. 

(h) "Direction of mental health behavioral aide" means the activities of a mental health professional, clinical trainee, or mental health practitioner in guiding the mental health behavioral aide in providing services to a client. The direction of a mental health behavioral aide must be based on the client's individual treatment plan and meet the requirements in subdivision 6, paragraph (b), clause (7). 

(i) "Individual treatment plan" means the plan described in section 245I.10, subdivisions 7 and 8. 

(j) "Mental health behavioral aide services" means medically necessary one-on-one activities performed by a mental health behavioral aide qualified according to section 245I.04, subdivision 16, to assist a child retain or generalize psychosocial skills as previously trained by a mental health professional, clinical trainee, or mental health practitioner and as described in the child's individual treatment plan and individual behavior plan. Activities involve working directly with the child or child's family as provided in subdivision 9, paragraph (b), clause (4). 

(k) "Mental health certified family peer specialist" means a staff person who is qualified according to section 245I.04, subdivision 12. 

(l) "Mental health practitioner" means a staff person who is qualified according to section 245I.04, subdivision 4. 

(m) "Mental health professional" means a staff person who is qualified according to section 245I.04, subdivision 2. 

(n) "Mental health service plan development" includes: 

(1) development and revision of a child's individual treatment plan; and 

(2) administering and reporting standardized outcome measurements approved by the commissioner, as periodically needed to evaluate the effectiveness of treatment. 

(o) "Mental illness" has the meaning given in section 245.462, subdivision 20, paragraph (a), for persons at least 18 years of age but under 21 years of age, and has the meaning given in section 245.4871, subdivision 15, for children under 18 years of age. 

(p) "Psychotherapy" means the treatment described in section 256B.0671, subdivision 11. 

(q) "Rehabilitative services" or "psychiatric rehabilitation services" means interventions to: (1) restore a child or adolescent to an age-appropriate developmental trajectory that had been disrupted by a psychiatric illness; or (2) enable the child to self-monitor, compensate for, cope with, counteract, or replace psychosocial skills deficits or maladaptive skills acquired over the course of a psychiatric illness. Psychiatric rehabilitation services for children combine coordinated psychotherapy to address internal psychological, emotional, and intellectual processing deficits, and skills training to restore personal and social functioning. Psychiatric rehabilitation services establish a progressive series of goals with each achievement building upon a prior achievement. 

(r) "Skills training" means individual, family, or group training, delivered by or under the supervision of a mental health professional, designed to facilitate the acquisition of psychosocial skills that are medically necessary to rehabilitate the child to an age-appropriate developmental trajectory heretofore disrupted by a psychiatric illness or to enable the child to self-monitor, compensate for, cope with, counteract, or replace skills deficits or maladaptive skills acquired over the course of a psychiatric illness. Skills training is subject to the service delivery requirements under subdivision 9, paragraph (b), clause (2). 

(s) "Standard diagnostic assessment" means the assessment described in section 245I.10, subdivision 6. 

(t) "Treatment supervision" means the supervision described in section 245I.06. 

Subd. 4.Provider entity certification. 
(a) The commissioner shall establish an initial provider entity application and certification process and recertification process to determine whether a provider entity has an administrative and clinical infrastructure that meets the requirements in subdivisions 5 and 6. A provider entity must be certified for the three core rehabilitation services of psychotherapy, skills training, and crisis planning. The commissioner shall recertify a provider entity every three years using the individual provider's certification anniversary or the calendar year end, whichever is later. The commissioner may approve a recertification extension, in the interest of sustaining services, when a certain date for recertification is identified. The commissioner shall establish a process for decertification of a provider entity and shall require corrective action, medical assistance repayment, or decertification of a provider entity that no longer meets the requirements in this section or that fails to meet the clinical quality standards or administrative standards provided by the commissioner in the application and certification process. 

(b) The commissioner must provide the following to providers for the certification, recertification, and decertification processes: 

(1) a structured listing of required provider certification criteria; 

(2) a formal written letter with a determination of certification, recertification, or decertification, signed by the commissioner or the appropriate division director; and 

(3) a formal written communication outlining the process for necessary corrective action and follow-up by the commissioner, if applicable. 

(c) For purposes of this section, a provider entity must meet the standards in this section and chapter 245I, as required under section 245I.011, subdivision 5, and be: 

(1) an Indian health services facility or a facility owned and operated by a tribe or tribal organization operating as a 638 facility under Public Law 93-638 certified by the state; 

(2) a county-operated entity certified by the state; or 

(3) a noncounty entity certified by the state. 

Subd. 5.Provider entity administrative infrastructure requirements. 
(a) An eligible provider entity shall demonstrate the availability, by means of employment or contract, of at least one backup mental health professional in the event of the primary mental health professional's absence. 

(b) In addition to the policies and procedures required under section 245I.03, the policies and procedures must include: 

(1) fiscal procedures, including internal fiscal control practices and a process for collecting revenue that is compliant with federal and state laws; and 

(2) a client-specific treatment outcomes measurement system, including baseline measures, to measure a client's progress toward achieving mental health rehabilitation goals. 

(c) A provider entity that uses a restrictive procedure with a client must meet the requirements of section 245.8261. 

Subd. 5a.Background studies. 
The requirements for background studies under section 245I.011, subdivision 5, paragraph (b), may be met by a children's therapeutic services and supports services agency through the commissioner's NETStudy system as provided under sections 245C.03, subdivision 7, and 245C.10, subdivision 8. 

Subd. 6.Provider entity clinical infrastructure requirements. 
(a) To be an eligible provider entity under this section, a provider entity must have a clinical infrastructure that utilizes diagnostic assessment, individual treatment plans, service delivery, and individual treatment plan review that are culturally competent, child-centered, and family-driven to achieve maximum benefit for the client. The provider entity must review, and update as necessary, the clinical policies and procedures every three years, must distribute the policies and procedures to staff initially and upon each subsequent update, and must train staff accordingly. 

(b) The clinical infrastructure written policies and procedures must include policies and procedures for meeting the requirements in this subdivision: 

(1) providing or obtaining a client's standard diagnostic assessment, including a standard diagnostic assessment. When required components of the standard diagnostic assessment are not provided in an outside or independent assessment or cannot be attained immediately, the provider entity must determine the missing information within 30 days and amend the child's standard diagnostic assessment or incorporate the information into the child's individual treatment plan; 

(2) developing an individual treatment plan; 

(3) providing treatment supervision plans for staff according to section 245I.06. Treatment supervision does not include the authority to make or terminate court-ordered placements of the child. A treatment supervisor must be available for urgent consultation as required by the individual client's needs or the situation; 

(4) requiring a mental health professional to determine the level of supervision for a behavioral health aide and to document and sign the supervision determination in the behavioral health aide's supervision plan; 

(5) ensuring the immediate accessibility of a mental health professional, clinical trainee, or mental health practitioner to the behavioral aide during service delivery; 

(6) providing service delivery that implements the individual treatment plan and meets the requirements under subdivision 9; and 

(7) individual treatment plan review. The review must determine the extent to which the services have met each of the goals and objectives in the treatment plan. The review must assess the client's progress and ensure that services and treatment goals continue to be necessary and appropriate to the client and the client's family or foster family. 

Subd. 7.Qualifications of individual and team providers. 
(a) An individual or team provider working within the scope of the provider's practice or qualifications may provide service components of children's therapeutic services and supports that are identified as medically necessary in a client's individual treatment plan. 

(b) An individual provider must be qualified as a: 

(1) mental health professional; 

(2) clinical trainee; 

(3) mental health practitioner; 

(4) mental health certified family peer specialist; or 

(5) mental health behavioral aide. 

(c) A day treatment team must include one mental health professional or clinical trainee. 

Subd. 9.Service delivery criteria. 
(a) In delivering services under this section, a certified provider entity must ensure that: 

(1) the provider's caseload size should reasonably enable the provider to play an active role in service planning, monitoring, and delivering services to meet the client's and client's family's needs, as specified in each client's individual treatment plan; 

(2) site-based programs, including day treatment programs, provide staffing and facilities to ensure the client's health, safety, and protection of rights, and that the programs are able to implement each client's individual treatment plan; and 

(3) a day treatment program is provided to a group of clients by a team under the treatment supervision of a mental health professional. The day treatment program must be provided in and by: (i) an outpatient hospital accredited by the Joint Commission on Accreditation of Health Organizations and licensed under sections 144.50 to 144.55; (ii) a community mental health center under section 245.62; or (iii) an entity that is certified under subdivision 4 to operate a program that meets the requirements of section 245.4884, subdivision 2, and Minnesota Rules, parts 9505.0170 to 9505.0475. The day treatment program must stabilize the client's mental health status while developing and improving the client's independent living and socialization skills. The goal of the day treatment program must be to reduce or relieve the effects of mental illness and provide training to enable the client to live in the community. The remainder of the structured treatment program may include patient and/or family or group psychotherapy, and individual or group skills training, if included in the client's individual treatment plan. Day treatment programs are not part of inpatient or residential treatment services. When a day treatment group that meets the minimum group size requirement temporarily falls below the minimum group size because of a member's temporary absence, medical assistance covers a group session conducted for the group members in attendance. A day treatment program may provide fewer than the minimally required hours for a particular child during a billing period in which the child is transitioning into, or out of, the program. 

(b) To be eligible for medical assistance payment, a provider entity must deliver the service components of children's therapeutic services and supports in compliance with the following requirements: 

(1) psychotherapy to address the child's underlying mental health disorder must be documented as part of the child's ongoing treatment. A provider must deliver or arrange for medically necessary psychotherapy unless the child's parent or caregiver chooses not to receive it or the provider determines that psychotherapy is no longer medically necessary. When a provider determines that psychotherapy is no longer medically necessary, the provider must update required documentation, including but not limited to the individual treatment plan, the child's medical record, or other authorizations, to include the determination. When a provider determines that a child needs psychotherapy but psychotherapy cannot be delivered due to a shortage of licensed mental health professionals in the child's community, the provider must document the lack of access in the child's medical record; 

(2) individual, family, or group skills training is subject to the following requirements: 

(i) a mental health professional, clinical trainee, or mental health practitioner shall provide skills training; 

(ii) skills training delivered to a child or the child's family must be targeted to the specific deficits or maladaptations of the child's mental health disorder and must be prescribed in the child's individual treatment plan; 

(iii) group skills training may be provided to multiple recipients who, because of the nature of their emotional, behavioral, or social dysfunction, can derive mutual benefit from interaction in a group setting, which must be staffed as follows: 

(A) one mental health professional, clinical trainee, or mental health practitioner must work with a group of three to eight clients; or 

(B) any combination of two mental health professionals, clinical trainees, or mental health practitioners must work with a group of nine to 12 clients; 

(iv) a mental health professional, clinical trainee, or mental health practitioner must have taught the psychosocial skill before a mental health behavioral aide may practice that skill with the client; and 

(v) for group skills training, when a skills group that meets the minimum group size requirement temporarily falls below the minimum group size because of a group member's temporary absence, the provider may conduct the session for the group members in attendance; 

(3) crisis planning to a child and family must include development of a written plan that anticipates the particular factors specific to the child that may precipitate a psychiatric crisis for the child in the near future. The written plan must document actions that the family should be prepared to take to resolve or stabilize a crisis, such as advance arrangements for direct intervention and support services to the child and the child's family. Crisis planning must include preparing resources designed to address abrupt or substantial changes in the functioning of the child or the child's family when sudden change in behavior or a loss of usual coping mechanisms is observed, or the child begins to present a danger to self or others; 

(4) mental health behavioral aide services must be medically necessary treatment services, identified in the child's individual treatment plan. 

To be eligible for medical assistance payment, mental health behavioral aide services must be delivered to a child who has been diagnosed with a mental illness, as provided in subdivision 1, paragraph (a). The mental health behavioral aide must document the delivery of services in written progress notes. Progress notes must reflect implementation of the treatment strategies, as performed by the mental health behavioral aide and the child's responses to the treatment strategies; and 

(5) mental health service plan development must be performed in consultation with the child's family and, when appropriate, with other key participants in the child's life by the child's treating mental health professional or clinical trainee or by a mental health practitioner and approved by the treating mental health professional. Treatment plan drafting consists of development, review, and revision by face-to-face or electronic communication. The provider must document events, including the time spent with the family and other key participants in the child's life to approve the individual treatment plan. Medical assistance covers service plan development before completion of the child's individual treatment plan. Service plan development is covered only if a treatment plan is completed for the child. If upon review it is determined that a treatment plan was not completed for the child, the commissioner shall recover the payment for the service plan development. 

Subd. 11.Documentation and billing. 
(a) A provider entity must document the services it provides under this section. The provider entity must ensure that documentation complies with Minnesota Rules, parts 9505.2175 and 9505.2197. Services billed under this section that are not documented according to this subdivision shall be subject to monetary recovery by the commissioner. Billing for covered service components under subdivision 2, paragraph (b), must not include anything other than direct service time. 

(b) Required documentation must be completed for each individual provider and service modality for each day a child receives a service under subdivision 2, paragraph (b). 

609.466 MEDICAL ASSISTANCE FRAUD.
Any person who, with the intent to defraud, presents a claim for reimbursement, a cost report or a rate application, relating to the payment of medical assistance funds pursuant to chapter 256B, to the state agency, which is false in whole or in part, is guilty of an attempt to commit theft of public funds and may be sentenced accordingly. 

9505.2165DEFINITIONS. Subp. 4.Fraud.  
"Fraud" means: 

A.
 acts which constitute a crime against any program, or attempts or conspiracies to commit those crimes, including the following: 

(1)
 theft in violation of Minnesota Statutes, section 609.52; 

(2)
 perjury in violation of Minnesota Statutes, section 609.48; 

(3)
 aggravated forgery and forgery in violation of Minnesota Statutes, sections 609.625 and 609.63; 

(4)
 medical assistance fraud in violation of Minnesota Statutes, section 609.466; and 

(5)
 financial transaction card fraud in violation of Minnesota Statutes, section 609.821; 

B.
 making a false statement, false claim, or false representation to a program where the person knows or should reasonably know the statement, claim, or representation is false, including knowingly and willfully submitting a false or fraudulent application for provider status; and 

C.
 a felony listed in United States Code, title 42, section 1320a-7b(b)(3)(D), subject to any safe harbors established in Code of Federal Regulations, title 42, part 1001, section 952.