1.1 	A bill for an act
1.2 	relating to human services; modifying provisions relating to aging and disability 
1.3 	services, behavioral health, health care, housing and economic supports, and the 
1.4 	Office of the Inspector General; recodifying certain language; making technical 
1.5 	corrections; requiring a report; amending Minnesota Statutes 2024, sections 13A.03, 
1.6 	by adding a subdivision; 142B.01, subdivision 8; 245.095, subdivisions 2, 5; 
1.7 	245.991, subdivision 3; 245.992, subdivision 2; 245A.02, subdivisions 5a, 13; 
1.8 	245A.03, subdivision 7; 245A.043, subdivision 2; 245A.07, subdivision 2a; 
1.9 	245C.02, subdivision 18; 245C.03, subdivision 1; 245C.04, subdivision 1; 245C.15, 
1.10 	subdivisions 2, 3, 4; 245C.24, subdivision 2; 245D.04, subdivision 3; 245D.081, 
1.11 	subdivision 3; 245D.10, subdivision 4; 245F.02, subdivision 17; 245F.15, 
1.12 	subdivision 7; 245G.04, by adding a subdivision; 245G.11, subdivision 8; 245I.04, 
1.13 	by adding a subdivision; 245I.08, subdivision 4; 245I.10, subdivision 6; 254B.052, 
1.14 	subdivision 1; 256B.02, by adding a subdivision; 256B.04, subdivision 10; 
1.15 	256B.057, subdivision 9; 256B.0624, subdivisions 6b, 7; 256B.0625, subdivisions 
1.16 	4, 47, by adding a subdivision; 256B.064, subdivision 2; 256B.0759, subdivision 
1.17 	3; 256B.0911, subdivision 32; 256B.0924, subdivisions 3, 5, 7, by adding a 
1.18 	subdivision; 256B.0943, subdivision 6; 256B.0946, subdivision 4; 256B.0947, 
1.19 	subdivision 5; 256B.0949, subdivision 17, by adding a subdivision; 256B.27, 
1.20 	subdivision 3; 256B.4905, subdivision 2a; 256B.5012, subdivision 21; 256B.851, 
1.21 	subdivision 8; 256D.05, subdivision 1; 256D.06, subdivision 2; 256D.54, 
1.22 	subdivision 1; 256I.04, subdivision 2b; 256K.46, subdivision 5; 256L.05, 
1.23 	subdivision 3; 256L.06, subdivision 3; 256S.21, subdivision 3; 626.557, 
1.24 	subdivisions 9, 9a, 12b, by adding subdivisions; 626.5572, subdivisions 2, 9, 17, 
1.25 	by adding subdivisions; Minnesota Statutes 2025 Supplement, sections 245.469, 
1.26 	subdivision 1; 245A.03, subdivision 2; 245A.043, subdivision 2a; 245A.07, 
1.27 	subdivision 3; 245A.10, subdivision 4; 245A.142, subdivision 3; 245A.242, 
1.28 	subdivision 2; 245C.07; 245C.13, subdivision 2; 245C.15, subdivision 4a; 245C.22, 
1.29 	subdivision 5; 245D.091, subdivisions 2, 3; 245F.08, subdivision 3; 245G.11, 
1.30 	subdivision 7; 245I.04, subdivision 17; 254A.03, subdivision 3; 254B.0505, 
1.31 	subdivision 8; 254B.052, subdivision 6; 256B.04, subdivision 21; 256B.0759, 
1.32 	subdivision 4; 256B.0911, subdivision 13; 256B.0924, subdivision 6; 256B.0943, 
1.33 	subdivision 1; 256B.0947, subdivision 3a; 256B.0949, subdivisions 2, 16; 
1.34 	256B.4914, subdivision 10a; 256L.03, subdivision 5; 260E.03, subdivision 6; 
1.35 	260E.11, subdivision 1; 260E.14, subdivision 1; 626.5572, subdivision 13; Laws 
1.36 	2024, chapter 125, article 4, section 12, subdivision 5; proposing coding for new 
1.37 	law in Minnesota Statutes, chapter 256B; repealing Minnesota Statutes 2024, 
1.38 	sections 245A.02, subdivision 10b; 256B.0759, subdivisions 2, 5; 256B.5012, 
2.1 	subdivisions 4, 5, 6, 7, 8, 9, 10, 11, 12, 14, 15, 16; 256D.09, subdivisions 2a, 2b; 
2.2 	256K.45, subdivision 2; 626.557, subdivision 10; Minnesota Statutes 2025 
2.3 	Supplement, section 245A.10, subdivision 3a; Minnesota Rules, part 9505.2165, 
2.4 	subpart 4.
2.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.6 	ARTICLE 1
2.7 	AGING AND DISABILITY SERVICES

2.8 	Section 1. Minnesota Statutes 2024, section 245A.03, subdivision 7, is amended to read:
2.9 		Subd. 7.Licensing moratorium. (a) The commissioner shall not issue an initial license 
2.10 	for child foster care licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, which 
2.11 	does not include child foster residence settings with residential program certifications for 
2.12 	compliance with the Family First Prevention Services Act under section 245A.25, subdivision 
2.13 	1, paragraph (a), or adult foster care licensed under Minnesota Rules, parts 9555.5105 to 
2.14 	9555.6265, under this chapter for a physical location that will not be the primary residence 
2.15 	of the license holder for the entire period of licensure. If a child foster residence setting that 
2.16 	was previously exempt from the licensing moratorium under this paragraph has its Family 
2.17 	First Prevention Services Act certification rescinded under section 245A.25, subdivision 9, 
2.18 	or if a family adult foster care home license is issued during this moratorium, and the license 
2.19 	holder changes the license holder's primary residence away from the physical location of 
2.20 	the foster care license, the commissioner shall revoke the license according to section 
2.21 	245A.07. The commissioner shall not issue an initial license for a community residential 
2.22 	setting licensed under chapter 245D. When approving an exception under this paragraph, 
2.23 	the commissioner shall consider the resource need determination process in paragraph (h), 
2.24 	the availability of foster care licensed beds in the geographic area in which the licensee 
2.25 	seeks to operate, the results of a person's choices during their annual assessment and service 
2.26 	plan review, and the recommendation of the local county board. The determination by the 
2.27 	commissioner is final and not subject to appeal. Exceptions to the moratorium include:
2.28 	(1) a license for a person in a foster care setting that is not the primary residence of the 
2.29 	license holder and where at least 80 percent of the residents are 55 years of age or older;
2.30 	(2) foster care licenses replacing foster care licenses in existence on May 15, 2009, or 
2.31 	community residential setting licenses replacing adult foster care licenses in existence on 
2.32 	December 31, 2013, and determined to be needed by the commissioner under paragraph 
2.33 	(b);
2.34 	(3) (2) new foster care licenses or community residential setting licenses determined to 
2.35 	be needed by the commissioner under paragraph (b) for the closure of a nursing facility, 
3.1 	ICF/DD, or regional treatment center; restructuring of state-operated services that limits 
3.2 	the capacity of state-operated facilities; or allowing movement to the community for people 
3.3 	who no longer require the level of care provided in state-operated facilities as provided 
3.4 	under section 256B.092, subdivision 13, or 256B.49, subdivision 24; or
3.5 	(4) (3) new foster care licenses or community residential setting licenses determined to 
3.6 	be needed by the commissioner under paragraph (b) for persons requiring hospital-level 
3.7 	care; or.
3.8 	(5) new community residential setting licenses determined necessary by the commissioner 
3.9 	for people affected by the closure of homes with a capacity of five or six beds currently 
3.10 	licensed as supervised living facilities licensed under Minnesota Rules, chapter 4665, but 
3.11 	not designated as intermediate care facilities. This exception is available until June 30, 2025.
3.12 	(b) The commissioner shall determine the need for newly licensed foster care homes or 
3.13 	community residential settings as defined under this subdivision. As part of the determination, 
3.14 	the commissioner shall consider the availability of foster care capacity in the area in which 
3.15 	the licensee seeks to operate, and the recommendation of the local county board. The 
3.16 	determination by the commissioner must be final. A determination of need is not required 
3.17 	for a change in ownership at the same address.
3.18 	(c) When an adult resident served by the program moves out of a foster home that is not 
3.19 	the primary residence of the license holder according to section 256B.49, subdivision 15, 
3.20 	paragraph (f), or the adult community residential setting, the county shall immediately 
3.21 	inform the Department of Human Services Licensing Division. The department may decrease 
3.22 	the statewide licensed capacity for adult foster care settings.
3.23 	(d) Residential settings that would otherwise be subject to the decreased license capacity 
3.24 	established in paragraph (c) must be exempt if the license holder's beds are occupied by 
3.25 	residents whose primary diagnosis is mental illness and the license holder is certified under 
3.26 	the requirements in subdivision 6a or section 245D.33.
3.27 	(e) A resource need determination process, managed at the state level, using the available 
3.28 	data required by section 144A.351, and other data and information must be used to determine 
3.29 	where the reduced capacity determined under section 256B.493 will be implemented. The 
3.30 	commissioner shall consult with the stakeholders described in section 144A.351, and employ 
3.31 	a variety of methods to improve the state's capacity to meet the informed decisions of those 
3.32 	people who want to move out of corporate foster care or community residential settings, 
3.33 	long-term service needs within budgetary limits, including seeking proposals from service 
3.34 	providers or lead agencies to change service type, capacity, or location to improve services, 
4.1 	increase the independence of residents, and better meet needs identified by the long-term 
4.2 	services and supports reports and statewide data and information.
4.3 	(f) At the time of application and reapplication for licensure, the applicant and the license 
4.4 	holder that are subject to the moratorium or an exclusion established in paragraph (a) are 
4.5 	required to inform the commissioner whether the physical location where the foster care 
4.6 	will be provided is or will be the primary residence of the license holder for the entire period 
4.7 	of licensure. If the primary residence of the applicant or license holder changes, the applicant 
4.8 	or license holder must notify the commissioner immediately. The commissioner shall print 
4.9 	on the foster care license certificate whether or not the physical location is the primary 
4.10 	residence of the license holder.
4.11 	(g) License holders of foster care homes identified under paragraph (f) that are not the 
4.12 	primary residence of the license holder and that also provide services in the foster care home 
4.13 	that are covered by a federally approved home and community-based services waiver, as 
4.14 	authorized under chapter 256S or section 256B.092 or 256B.49, must inform the human 
4.15 	services licensing division that the license holder provides or intends to provide these 
4.16 	waiver-funded services.
4.17 	(h) The commissioner may adjust capacity to address needs identified in section 
4.18 	144A.351. Under this authority, the commissioner may approve new licensed settings or 
4.19 	delicense existing settings. Delicensing of settings will be accomplished through a process 
4.20 	identified in section 256B.493.
4.21 	(i) The commissioner must notify a license holder when its corporate foster care or 
4.22 	community residential setting licensed beds are reduced under this section. The notice of 
4.23 	reduction of licensed beds must be in writing and delivered to the license holder by certified 
4.24 	mail or personal service. The notice must state why the licensed beds are reduced and must 
4.25 	inform the license holder of its right to request reconsideration by the commissioner. The 
4.26 	license holder's request for reconsideration must be in writing. If mailed, the request for 
4.27 	reconsideration must be postmarked and sent to the commissioner within 20 calendar days 
4.28 	after the license holder's receipt of the notice of reduction of licensed beds. If a request for 
4.29 	reconsideration is made by personal service, it must be received by the commissioner within 
4.30 	20 calendar days after the license holder's receipt of the notice of reduction of licensed beds.
4.31 	(j) The commissioner shall not issue an initial license for children's residential treatment 
4.32 	services licensed under Minnesota Rules, parts 2960.0580 to 2960.0700, under this chapter 
4.33 	for a program that Centers for Medicare and Medicaid Services would consider an institution 
4.34 	for mental diseases. Facilities that serve only private pay clients are exempt from the 
5.1 	moratorium described in this paragraph. The commissioner has the authority to manage 
5.2 	existing statewide capacity for children's residential treatment services subject to the 
5.3 	moratorium under this paragraph and may issue an initial license for such facilities if the 
5.4 	initial license would not increase the statewide capacity for children's residential treatment 
5.5 	services subject to the moratorium under this paragraph.

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

5.7 	Sec. 2. Minnesota Statutes 2025 Supplement, section 245D.091, subdivision 2, is amended 
5.8 	to read:
5.9 		Subd. 2.Positive support professional qualifications. A positive support professional 
5.10 	providing positive support services as identified in section 245D.03, subdivision 1, paragraph 
5.11 	(c), clause (1), item (i), must have competencies in the following areas as required under 
5.12 	the brain injury, community access for disability inclusion, community alternative care, and 
5.13 	developmental disabilities waiver plans or successor plans:
5.14 	(1) ethical considerations;
5.15 	(2) functional assessment;
5.16 	(3) functional analysis;
5.17 	(4) measurement of behavior and interpretation of data;
5.18 	(5) selecting intervention outcomes and strategies;
5.19 	(6) behavior reduction and elimination strategies that promote least restrictive approved 
5.20 	alternatives;
5.21 	(7) data collection;
5.22 	(8) staff and caregiver training;
5.23 	(9) support plan monitoring;
5.24 	(10) co-occurring mental disorders or neurocognitive disorder;
5.25 	(11) demonstrated expertise with populations being served; and
5.26 	(12) must be a:
5.27 	(i) psychologist licensed under sections 148.88 to 148.98, who has stated to the Board 
5.28 	of Psychology competencies in the above identified areas;
5.29 	(ii) clinical social worker licensed as an independent clinical social worker under chapter 
5.30 	148E, or a person with a master's degree in social work from an accredited college or 
6.1 	university, with at least 4,000 hours of post-master's supervised experience in the delivery 
6.2 	of clinical services in the areas identified in clauses (1) to (11);
6.3 	(iii) physician licensed under chapter 147 and certified by the American Board of 
6.4 	Psychiatry and Neurology or eligible for board certification in psychiatry with competencies 
6.5 	in the areas identified in clauses (1) to (11);
6.6 	(iv) licensed professional clinical counselor licensed under sections 148B.29 to 148B.39
6.7 	148B.5301 and 148B.532 with at least 4,000 hours of post-master's supervised experience 
6.8 	in the delivery of clinical services who has demonstrated competencies in the areas identified 
6.9 	in clauses (1) to (11);
6.10 	(v) person with a master's degree from an accredited college or university in one of the 
6.11 	behavioral sciences or related fields, with at least 4,000 hours of post-master's supervised 
6.12 	experience in the delivery of clinical services with demonstrated competencies in the areas 
6.13 	identified in clauses (1) to (11);
6.14 	(vi) person with a master's degree or PhD in one of the behavioral sciences or related 
6.15 	fields with demonstrated expertise in positive support services, as determined by the person's 
6.16 	needs as outlined in the person's assessment summary;
6.17 	(vii) registered nurse who is licensed under sections 148.171 to 148.285, and who is 
6.18 	certified as a clinical specialist or as a nurse practitioner in adult or family psychiatric and 
6.19 	mental health nursing by a national nurse certification organization, or who has a master's 
6.20 	degree in nursing or one of the behavioral sciences or related fields from an accredited 
6.21 	college or university or its equivalent, with at least 4,000 hours of post-master's supervised 
6.22 	experience in the delivery of clinical services; or
6.23 	(viii) person who has completed a competency-based training program as determined 
6.24 	by the commissioner.

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

6.26 	Sec. 3. Minnesota Statutes 2025 Supplement, section 245D.091, subdivision 3, is amended 
6.27 	to read:
6.28 		Subd. 3.Positive support analyst qualifications. (a) A positive support analyst providing 
6.29 	positive support services as identified in section 245D.03, subdivision 1, paragraph (c), 
6.30 	clause (1), item (i), must satisfy one of the following requirements as required under the 
6.31 	brain injury, community access for disability inclusion, community alternative care, and 
6.32 	developmental disabilities waiver plans or successor plans:
7.1 	(1) have obtained a baccalaureate degree, master's degree, or PhD in either a social 
7.2 	services discipline or nursing;
7.3 	(2) meet the qualifications of a mental health practitioner as defined in section 245.462, 
7.4 	subdivision 17;
7.5 	(3) be a board-certifiedlicensed behavior analyst or a board-certified assistant behavior 
7.6 	analyst certified by the Behavior Analyst Certification Board, Incorporated; or
7.7 	(4) have completed a competency-based training program as determined by the 
7.8 	commissioner.
7.9 	(b) In addition, a positive support analyst must:
7.10 	(1) either have two years of supervised experience conducting functional behavior 
7.11 	assessments and designing, implementing, and evaluating effectiveness of positive practices 
7.12 	behavior support strategies for people who exhibit challenging behaviors as well as 
7.13 	co-occurring mental disorders and neurocognitive disorder, or for those who have obtained 
7.14 	a baccalaureate degree in one of the behavioral sciences or related fields, demonstrated 
7.15 	expertise in positive support services;
7.16 	(2) have received training prior to hire or within 90 calendar days of hire that includes:
7.17 	(i) ten hours of instruction in functional assessment and functional analysis;
7.18 	(ii) 20 hours of instruction in the understanding of the function of behavior;
7.19 	(iii) ten hours of instruction on design of positive practices behavior support strategies;
7.20 	(iv) 20 hours of instruction preparing written intervention strategies, designing data 
7.21 	collection protocols, training other staff to implement positive practice strategies, 
7.22 	summarizing and reporting program evaluation data, analyzing program evaluation data to 
7.23 	identify design flaws in behavioral interventions or failures in implementation fidelity, and 
7.24 	recommending enhancements based on evaluation data; and
7.25 	(v) eight hours of instruction on principles of person-centered thinking;
7.26 	(3) be determined by a positive support professional to have the training and prerequisite 
7.27 	skills required to provide positive practice strategies as well as behavior reduction approved 
7.28 	and permitted intervention to the person who receives positive support; and
7.29 	(4) be under the direct supervision of a positive support professional.
7.30 	(c) Meeting the qualifications for a positive support professional under subdivision 2 
7.31 	shall substitute for meeting the qualifications listed in paragraph (b).

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

8.2 	Sec. 4. Minnesota Statutes 2024, section 256B.0625, is amended by adding a subdivision 
8.3 	to read:
8.4 		Subd. 77.Early intensive developmental and behavioral intervention benefit. Medical 
8.5 	assistance covers early intensive developmental and behavioral intervention services 
8.6 	according to section 256B.0949.

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

8.8 	Sec. 5. Minnesota Statutes 2025 Supplement, section 256B.0911, subdivision 13, is 
8.9 	amended to read:
8.10 		Subd. 13.MnCHOICES assessor qualifications, training, and certification. (a) The 
8.11 	commissioner shall develop and implement a curriculum and an assessor certification 
8.12 	process.
8.13 	(b) MnCHOICES certified assessors must have received training and certification specific 
8.14 	to assessment and consultation for long-term care services in the state and either:
8.15 	(1) have at least an associate's degree in human services, or other closely related field;
8.16 	(2) have at least an associate's degree in nursing with a public health nursing certificate, 
8.17 	or other closely related field; or
8.18 	(3) be a registered nurse.
8.19 	(c) Certified assessors shall demonstrate best practices in assessment and support 
8.20 	planning, including person-centered planning principles, and have a common set of skills 
8.21 	that ensures consistency and equitable access to services statewide.
8.22 	(d) Certified assessors must be recertified every three years.
8.23 	(e) A Tribal Nation may establish the Tribal Nation's own education and experience 
8.24 	qualifications for certified assessors.

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

8.27 	Sec. 6. Minnesota Statutes 2024, section 256B.0911, subdivision 32, is amended to read:
8.28 		Subd. 32.Administrative activity. (a) The commissioner shall:
9.1 	(1) streamline the processes, including timelines for when assessments need to be 
9.2 	completed;
9.3 	(2) provide the services in this section; and
9.4 	(3) implement integrated solutions to automate the business processes to the extent 
9.5 	necessary for support plan approval, reimbursement, program planning, evaluation, and 
9.6 	policy development.
9.7 	(b) The commissioner shall work with lead agencies responsible for conducting long-term 
9.8 	care consultation services to:
9.9 	(1) modify the MnCHOICES application and assessment policies to create efficiencies 
9.10 	while ensuring federal compliance with medical assistance and long-term services and 
9.11 	supports eligibility criteria; and.
9.12 	(2) develop a set of measurable benchmarks sufficient to demonstrate quarterly 
9.13 	improvement in the average time per assessment and other mutually agreed upon measures 
9.14 	of increasing efficiency.
9.15 	(c) The commissioner shall collect data on the benchmarks developed under paragraph 
9.16 	(b) and provide to the lead agencies an annual trend analysis of the data in order to 
9.17 	demonstrate the commissioner's compliance with the requirements of this subdivision.

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

9.19 	Sec. 7. Minnesota Statutes 2024, section 256B.0924, subdivision 3, is amended to read:
9.20 		Subd. 3.Eligibility. Persons are eligible to receive targeted case management services 
9.21 	under this section if the requirements in paragraphs (a) and (b) are met.
9.22 	(a) The person must be assessed and determined by the local county or Tribal agency 
9.23 	to:
9.24 	(1) be age 18 or older;
9.25 	(2) be receiving medical assistance;
9.26 	(3) have significant functional limitations; and
9.27 	(4) be in need of service coordination to attain or maintain living in an integrated 
9.28 	community setting.
9.29 	(b) Except as permitted under paragraph (c), the person must be: (i) a vulnerable adult 
9.30 	in need of adult protection as defined in section 626.5572, or is; (ii) an adult with a 
9.31 	developmental disability as defined in section 252A.02, subdivision 2, or; (iii) an adult with
10.1 	a related condition as defined in section 256B.02, subdivision 11, and who is not receiving 
10.2 	home and community-based waiver services,; or is (iv) an adult who lacks a permanent 
10.3 	residence and who has been without a permanent residence for at least one year or on at 
10.4 	least four occasions in the last three years.
10.5 	(c) Tribal agencies may make a determination of eligibility under Tribal governance 
10.6 	codes for adult protection or policy procedures consistent with section 626.5572 when 
10.7 	determining whether a person is a vulnerable adult in need of adult protection or an adult 
10.8 	with developmental disabilities or a related condition.

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

10.11 	Sec. 8. Minnesota Statutes 2024, section 256B.0924, subdivision 5, is amended to read:
10.12 		Subd. 5.Provider standards. County boards or, providers who contract with the county, 
10.13 	or Tribal government contracted providers are eligible to receive medical assistance 
10.14 	reimbursement for adult targeted case management services. To qualify as a provider of 
10.15 	targeted case management services the vendor must:
10.16 	(1) have demonstrated the capacity and experience to provide the activities of case 
10.17 	management services defined in subdivision 4;
10.18 	(2) be able to coordinate and link community resources needed by the recipient;
10.19 	(3) have the administrative capacity and experience to serve the eligible population in 
10.20 	providing services and to ensure quality of services under state and federal requirements;
10.21 	(4) have a financial management system that provides accurate documentation of services 
10.22 	and costs under state and federal requirements;
10.23 	(5) have the capacity to document and maintain individual case records complying with 
10.24 	state and federal requirements;
10.25 	(6) coordinate with county social service services or Tribal human services agencies 
10.26 	responsible for planning for community social services under chapters 256E and 256F; 
10.27 	conducting adult protective investigations under section 626.557, and conducting prepetition 
10.28 	screenings for commitments under section 253B.07;
10.29 	(7) coordinate with health care providers to ensure access to necessary health care 
10.30 	services;
10.31 	(8) have a procedure in place that notifies the recipient and the recipient's legal 
10.32 	representative of any conflict of interest if the contracted targeted case management service 
11.1 	provider also provides the recipient's services and supports and provides information on all 
11.2 	potential conflicts of interest and obtains the recipient's informed consent and provides the 
11.3 	recipient with alternatives; and
11.4 	(9) have demonstrated the capacity to achieve the following performance outcomes: 
11.5 	access, quality, and consumer satisfaction.

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

11.8 	Sec. 9. Minnesota Statutes 2024, section 256B.0924, is amended by adding a subdivision 
11.9 	to read:
11.10 		Subd. 5a. Tribal case manager qualifications. An individual is authorized to serve as 
11.11 	a vulnerable adult and developmental disability targeted case manager if the individual is 
11.12 	certified by a federally recognized Tribal government in Minnesota pursuant to section 
11.13 	256B.02, subdivision 7, paragraph (c).

11.14 	Sec. 10. Minnesota Statutes 2025 Supplement, section 256B.0924, subdivision 6, is 
11.15 	amended to read:
11.16 		Subd. 6.Payment for targeted case management. (a) Medical assistance and 
11.17 	MinnesotaCare payment for targeted case management shall be made on a monthly basis. 
11.18 	In order to receive payment for an eligible adult, the provider must document at least one 
11.19 	contact per month and not more than two consecutive months without a face-to-face contact 
11.20 	either in person or by interactive video that meets the requirements in section 256B.0625, 
11.21 	subdivision 20b, with the adult or the adult's legal representative, family, primary caregiver, 
11.22 	or other relevant persons identified as necessary to the development or implementation of 
11.23 	the goals of the personal service plan.
11.24 	(b) Except as provided under paragraph (m), payment for targeted case management 
11.25 	provided by county staff under this subdivision shall be based on the monthly rate 
11.26 	methodology under section 256B.094, subdivision 6, paragraph (b), calculated as one 
11.27 	combined average rate together with adult mental health case management under section 
11.28 	256B.0625, subdivision 20, except for calendar year 2002. In calendar year 2002, the rate 
11.29 	for case management under this section shall be the same as the rate for adult mental health 
11.30 	case management in effect as of December 31, 2001. Billing and payment must identify the 
11.31 	recipient's primary population group to allow tracking of revenues.
12.1 	(c) Payment for targeted case management provided by county-contracted vendors shall 
12.2 	be based on a monthly rate calculated in accordance with section 256B.076, subdivision 2. 
12.3 	Payment for case management provided by vendors who contract with a Tribe must be made 
12.4 	in accordance with Indian health service facility requirements. If a Tribe chooses to contract 
12.5 	with a vendor receiving payment not through an Indian health service facility, the rate must 
12.6 	be based on a monthly rate negotiated by the Tribe. The rate must not exceed the rate charged 
12.7 	by the vendor for the same service to other payers. If the service is provided by a team of 
12.8 	contracted vendors, the team shall determine how to distribute the rate among its members. 
12.9 	No reimbursement received by contracted vendors shall be returned to the county or Tribe, 
12.10 	except to reimburse the county or Tribe for advance funding provided by the county or 
12.11 	Tribe to the vendor.
12.12 	(d) If the service is provided by a team that includes any combination of contracted 
12.13 	vendors and, county staff, and Tribal staff, the costs for county staff participation on the 
12.14 	team shall be included in the rate for county-provided services. In this case, the contracted 
12.15 	vendor and the county and Tribal case managers may each receive separate payment for 
12.16 	services provided by each entity in the same month. In order to prevent duplication of 
12.17 	services, the county each entity must document, in the recipient's file, the need for team 
12.18 	targeted case management and a description of the different roles of the team members staff.
12.19 	(e) Notwithstanding section 256B.19, subdivision 1, the nonfederal share of costs for 
12.20 	targeted case management shall be provided by the recipient's county of responsibility, as 
12.21 	defined in sections 256G.01 to 256G.12, from sources other than federal funds or funds 
12.22 	used to match other federal funds. If the service is provided by a Tribal agency, the recipient's 
12.23 	Tribe must provide the nonfederal share of costs, if any.
12.24 	(f) The commissioner may suspend, reduce, or terminate reimbursement to a provider 
12.25 	that does not meet the reporting or other requirements of this section. The county of 
12.26 	responsibility, as defined in sections 256G.01 to 256G.12, or Tribe when applicable, is 
12.27 	responsible for any federal disallowances. The county may share this responsibility with 
12.28 	its contracted vendors.
12.29 	(g) The commissioner shall set aside five percent of the federal funds received under 
12.30 	this section for use in reimbursing the state for costs of developing and implementing this 
12.31 	section.
12.32 	(h) Payments to counties and Tribes for targeted case management expenditures under 
12.33 	this section shall only be made from federal earnings from services provided under this 
13.1 	section. Payments to contracted vendors shall include both the federal earnings and the 
13.2 	county share.
13.3 	(i) Notwithstanding section 256B.041, county or Tribal payments for the cost of case 
13.4 	management services provided by county or Tribal staff shall not be made to the 
13.5 	commissioner of management and budget. For the purposes of targeted case management 
13.6 	services provided by county or Tribal staff under this section, the centralized disbursement 
13.7 	of payments to counties or Tribes under section 256B.041 consists only of federal earnings 
13.8 	from services provided under this section.
13.9 	(j) If the recipient is a resident of a nursing facility, intermediate care facility, or hospital, 
13.10 	and the recipient's institutional care is paid by medical assistance, payment for targeted case 
13.11 	management services under this subdivision is limited to the lesser of:
13.12 	(1) the last 180 days of the recipient's residency in that facility; or
13.13 	(2) the limits and conditions which apply to federal Medicaid funding for this service.
13.14 	(k) Payment for targeted case management services under this subdivision shall not 
13.15 	duplicate payments made under other program authorities for the same purpose.
13.16 	(l) Any growth in targeted case management services and cost increases under this 
13.17 	section shall be the responsibility of the counties or Tribes.
13.18 	(m) The commissioner may make payments for Tribes according to section 256B.0625, 
13.19 	subdivision 34, or other relevant federally approved rate setting methodologies for vulnerable 
13.20 	adult and developmental disability targeted case management provided by Indian health 
13.21 	services and facilities operated by a Tribe or Tribal organization.

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

13.24 	Sec. 11. Minnesota Statutes 2024, section 256B.0924, subdivision 7, is amended to read:
13.25 		Subd. 7.Implementation and evaluation. The commissioner of human services in 
13.26 	consultation with county boards and Tribal Nations shall establish a program to accomplish 
13.27 	the provisions of subdivisions 1 to 6. The commissioner in consultation with county boards 
13.28 	and Tribal Nations shall establish performance measures to evaluate the effectiveness of 
13.29 	the targeted case management services. If a county or Tribe fails to meet agreed-upon 
13.30 	performance measures, the commissioner may authorize contracted providers other than 
13.31 	the county or Tribe. Providers contracted by the commissioner shall also be subject to the 
13.32 	standards in subdivision 6.

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

14.2 	Sec. 12. Minnesota Statutes 2025 Supplement, section 256B.0949, subdivision 2, is 
14.3 	amended to read:
14.4 		Subd. 2.Definitions. (a) The terms used in this section have the meanings given in this 
14.5 	subdivision.
14.6 	(b) "Advanced certification" means a person who has completed advanced certification 
14.7 	in an approved modality under subdivision 13, paragraph (b).
14.8 	(c) "Agency" means the legal entity that is enrolled with Minnesota health care programs 
14.9 	as a medical assistance provider according to Minnesota Rules, part 9505.0195, to provide 
14.10 	EIDBI services and that has the legal responsibility to ensure that its employees carry out 
14.11 	the responsibilities defined in this section. Agency includes a licensed individual professional 
14.12 	who practices independently and acts as an agency.
14.13 	(d) "Autism spectrum disorder or a related condition" or "ASD or a related condition" 
14.14 	means either autism spectrum disorder (ASD) as defined in the current version of the 
14.15 	Diagnostic and Statistical Manual of Mental Disorders (DSM) or a condition that is found 
14.16 	to be closely related to ASD, as identified under the current version of the DSM, and meets 
14.17 	all of the following criteria:
14.18 	(1) is severe and chronic;
14.19 	(2) results in impairment of adaptive behavior and function similar to that of a person 
14.20 	with ASD;
14.21 	(3) requires treatment or services similar to those required for a person with ASD; and
14.22 	(4) results in substantial functional limitations in three core developmental deficits of 
14.23 	ASD: social or interpersonal interaction; functional communication, including nonverbal 
14.24 	or social communication; and restrictive or repetitive behaviors or hyperreactivity or 
14.25 	hyporeactivity to sensory input; and may include deficits or a high level of support in one 
14.26 	or more of the following domains:
14.27 	(i) behavioral challenges and self-regulation;
14.28 	(ii) cognition;
14.29 	(iii) learning and play;
14.30 	(iv) self-care; or
14.31 	(v) safety.
15.1 	(e) "Behavior analyst" means an individual licensed under sections 148.9981 to 148.9995
15.2 	as a behavior analyst.
15.3 	(f) "Clinical supervision" means the overall responsibility for the control and direction 
15.4 	of EIDBI service delivery, including individual treatment planning, staff supervision,
15.5 	including observation and direction; individual treatment plan development and progress 
15.6 	monitoring,; family training and counseling; and treatment review coordinated care 
15.7 	conference coordination for each person. Clinical supervision is provided by a qualified 
15.8 	supervising professional (QSP) who takes full professional responsibility for the service 
15.9 	provided by each supervisee and the clinical effectiveness of all interventions.
15.10 	(g) "Commissioner" means the commissioner of human services, unless otherwise 
15.11 	specified.
15.12 	(h) "Comprehensive multidisciplinary evaluation" or "CMDE" means a comprehensive 
15.13 	evaluation of a person to determine medical necessity for EIDBI services based on the 
15.14 	requirements in subdivision 5.
15.15 	(i) "Department" means the Department of Human Services, unless otherwise specified.
15.16 	(j) "Early intensive developmental and behavioral intervention benefit" or "EIDBI 
15.17 	benefit" means a variety of individualized, intensive treatment modalities approved and 
15.18 	published by the commissioner that are based in behavioral and developmental science 
15.19 	consistent with best practices on effectiveness.
15.20 	(k) "Employee of an agency" or "employee" means any individual who is employed 
15.21 	temporarily, part time, or full time by the agency that is submitting claims or billing for the 
15.22 	work, services, supervision, or treatment performed by the individual. Employee does not 
15.23 	include an independent contractor, billing agency, or consultant who is not providing EIDBI 
15.24 	services. Employee does not include an individual who performs work, provides services, 
15.25 	supervises, or provides treatment for less than 80 hours in a 12-month period.
15.26 	(l) "Generalizable goals" means results or gains that are observed during a variety of 
15.27 	activities over time with different people, such as providers, family members, other adults, 
15.28 	and people, and in different environments including, but not limited to, clinics, homes, 
15.29 	schools, and the community.
15.30 	(m) "Incident" means when any of the following occur:
15.31 	(1) an illness, accident, or injury that requires first aid treatment;
15.32 	(2) a bump or blow to the head; or
16.1 	(3) an unusual or unexpected event that jeopardizes the safety of a person or staff, 
16.2 	including a person leaving the agency unattended.
16.3 	(n) "Individual treatment plan" or "ITP" means the person-centered, individualized 
16.4 	written plan of care that integrates and coordinates person and family information from the 
16.5 	CMDE for a person who meets medical necessity for the EIDBI benefit. An individual 
16.6 	treatment plan must meet the standards in subdivision 6.
16.7 	(o) "Legal representative" means the parent of a child who is under 18 years of age, a 
16.8 	court-appointed guardian, or other representative with legal authority to make decisions 
16.9 	about service for a person. For the purpose of this subdivision, "other representative with 
16.10 	legal authority to make decisions" includes a health care agent or an attorney-in-fact 
16.11 	authorized through a health care directive or power of attorney.
16.12 	(p) "Mental health professional" means a staff person who is qualified according to 
16.13 	section 245I.04, subdivision 2.
16.14 	(q) "Person" means an individual under 21 years of age.
16.15 	(r) "Person-centered" means a service that both responds to the identified needs, interests, 
16.16 	values, preferences, and desired outcomes of the person or the person's legal representative 
16.17 	and respects the person's history, dignity, and cultural background and allows inclusion and 
16.18 	participation in the person's community.
16.19 	(s) "Qualified EIDBI provider" means an individual who is a QSP or a level I, level II, 
16.20 	or level III treatment provider.

16.21 	Sec. 13. Minnesota Statutes 2025 Supplement, section 256B.0949, subdivision 16, is 
16.22 	amended to read:
16.23 		Subd. 16.Agency duties. (a) An agency delivering an EIDBI service under this section 
16.24 	must:
16.25 	(1) enroll as a medical assistance Minnesota health care program provider according to 
16.26 	Minnesota Rules, part 9505.0195, and section 256B.04, subdivision 21, and meet all 
16.27 	applicable provider standards and requirements;
16.28 	(2) designate an individual as the agency's compliance officer who must perform the 
16.29 	duties described in section 256B.04, subdivision 21, paragraph (g);
16.30 	(3) demonstrate compliance with federal and state laws for the delivery of and billing 
16.31 	for EIDBI service;
17.1 	(4) verify and maintain records of a service provided to the person or the person's legal 
17.2 	representative as required under Minnesota Rules, parts 9505.2175 and 9505.2197;
17.3 	(5) demonstrate that while enrolled or seeking enrollment as a Minnesota health care 
17.4 	program provider the agency did not have a lead agency contract or provider agreement 
17.5 	discontinued because of a conviction of fraud; or did not have an owner, board member, or 
17.6 	manager fail a state or federal criminal background check or appear on the list of excluded 
17.7 	individuals or entities maintained by the federal Department of Human Services Office of 
17.8 	Inspector General;
17.9 	(6) have established business practices including written policies and procedures, internal 
17.10 	controls, and a system that demonstrates the organization's ability to deliver quality EIDBI 
17.11 	services, appropriately submit claims, conduct required staff training, document staff 
17.12 	qualifications, document service activities, and document service quality;
17.13 	(7) have an office located in Minnesota or a border state;
17.14 	(8) initiate a background study as required under subdivision 16a;
17.15 	(9) report maltreatment according to section 626.557 and chapter 260E;
17.16 	(10) comply with any data requests consistent with the Minnesota Government Data 
17.17 	Practices Act, sections 256B.064 and 256B.27;
17.18 	(11) provide training for all agency staff on the requirements and responsibilities listed 
17.19 	in the Maltreatment of Minors Act, chapter 260E, and the Vulnerable Adult Protection Act, 
17.20 	section 626.557, including mandated and voluntary reporting, nonretaliation, and the agency's 
17.21 	policy for all staff on how to report suspected abuse and neglect;
17.22 	(12) have a written policy to resolve issues collaboratively with the person and the 
17.23 	person's legal representative when possible. The policy must include a timeline for when 
17.24 	the person and the person's legal representative will be notified about issues that arise in 
17.25 	the provision of services;
17.26 	(13) provide the person's legal representative with prompt notification if the person is 
17.27 	injured while being served by the agency. An incident report must be completed by the 
17.28 	agency staff member in charge of the person. A copy of all incident and injury reports must 
17.29 	remain on file at the agency for at least five years from the report of the incident;
17.30 	(14) before starting a service, provide the person or the person's legal representative a 
17.31 	description of the treatment modality that the person shall receive, including the staffing 
17.32 	certification levels and training of the staff who shall provide a treatment;
18.1 	(15) provide clinical supervision for a minimum of one hour for every 16 hours of direct 
18.2 	treatment per person, unless otherwise authorized in the person's individual treatment plan; 
18.3 	and
18.4 	(16) provide the required EIDBI intervention observation and direction by a QSP or 
18.5 	Level I provider at least once per month. Notwithstanding subdivision 13, paragraph (l), 
18.6 	required EIDBI intervention observation and direction under this clause may be conducted 
18.7 	via telehealth provided that no more than two consecutive monthly required EIDBI 
18.8 	intervention observation and direction sessions under this clause are conducted via telehealth.
18.9 	(b) Upon request of the commissioner, an agency delivering services under this section 
18.10 	must:
18.11 	(1) identify the agency's controlling individuals, as defined under section 245A.02, 
18.12 	subdivision 5a;
18.13 	(2) provide disclosures of the use of billing agencies and other consultants who do not 
18.14 	provide EIDBI services; and
18.15 	(3) provide copies of any contracts with consultants or independent contractors who do 
18.16 	not provide EIDBI services, including hours contracted and responsibilities.
18.17 	(c) When delivering the ITP, and annually thereafter, an agency must provide the person 
18.18 	or the person's legal representative with:
18.19 	(1) a written copy and a verbal explanation of the person's or person's legal 
18.20 	representative's rights and the agency's responsibilities;
18.21 	(2) documentation in the person's file the date that the person or the person's legal 
18.22 	representative received a copy and explanation of the person's or person's legal 
18.23 	representative's rights and the agency's responsibilities; and
18.24 	(3) reasonable accommodations to provide the information in another format or language 
18.25 	as needed to facilitate understanding of the person's or person's legal representative's rights 
18.26 	and the agency's responsibilities.

18.27 	Sec. 14. Minnesota Statutes 2024, section 256B.0949, is amended by adding a subdivision 
18.28 	to read:
18.29 		Subd. 19.Documentation requirements. (a) CMDE and EIDBI providers must ensure 
18.30 	that all documentation, including but not limited to health service records and personnel 
18.31 	files, complies with this subdivision, subdivision 16, and Minnesota Rules, parts 9505.2175 
18.32 	and 9505.2197. Documentation must be complete, legible, accurate, and readily accessible.
19.1 	(b) All documentation must:
19.2 	(1) be legible and understandable to individuals outside service delivery;
19.3 	(2) include the participant's name on each health record page and the provider's name 
19.4 	on each personnel file page;
19.5 	(3) be signed and dated by the provider completing the documentation, with the provider's 
19.6 	full name, title, and credentials;
19.7 	(4) be entered within 72 hours of service, and contain a record and explanation of any 
19.8 	delays in entry;
19.9 	(5) clearly reflect clinical decision-making and support medical necessity;
19.10 	(6) be securely stored in accordance with the Health Insurance Portability and 
19.11 	Accountability Act (HIPAA), Public Law 104-191;
19.12 	(7) be stored in accordance with state and federal document retention laws;
19.13 	(8) be available for review or audit;
19.14 	(9) include a record of caregiver involvement where applicable; and
19.15 	(10) include a record of supervision and oversight for staff providing services requiring 
19.16 	supervision under EIDBI policy.
19.17 	(c) Each EIDBI service occurrence must be documented in a progress note in a manner 
19.18 	and with the information determined by the commissioner.
19.19 	(d) All providers must maintain current personnel records for each employee in a manner 
19.20 	determined by the commissioner that include:
19.21 	(1) the employee's name, contact information, and hire date;
19.22 	(2) the employee's completed employment application and acknowledgment of duties;
19.23 	(3) the job description for the employee's job with the effective date;
19.24 	(4) verification of the employee's qualifications, including but not limited to education, 
19.25 	licenses, certifications, enrollment attestation, degrees, transcripts, and experience;
19.26 	(5) a background check pursuant to chapter 245C;
19.27 	(6) orientation and required training the employee attended, including but not limited 
19.28 	to training on mandated reporting, cultural responsiveness, and EIDBI competencies;
19.29 	(7) the dates of the employee's first supervised and unsupervised client contact following 
19.30 	employment;
20.1 	(8) documentation of supervision received by the employee, including but not limited 
20.2 	to the supervisor's name and credentials, dates of supervision, and supervision content;
20.3 	(9) the employee's CPR and emergency response training, if required; and
20.4 	(10) the employee's annual performance evaluations.

20.5 	Sec. 15. Minnesota Statutes 2024, section 256B.4905, subdivision 2a, is amended to read:
20.6 		Subd. 2a.Informed choice policy. (a) It is the policy of this state that all adults who 
20.7 	have disabilities and, with support from their families or legal representatives, that all 
20.8 	children who have disabilities:
20.9 	(1) may make informed choices to select and utilize disability services and supports; 
20.10 	and
20.11 	(2) are offered an informed decision-making process sufficient to make informed choices.
20.12 	(b) It is the policy of this state that disability waivers services support the presumption 
20.13 	that adults who have disabilities and, with support from their families or legal representatives, 
20.14 	all children who have disabilities may make informed choices; and that all adults who have 
20.15 	disabilities and all families of children who have disabilities and are accessing waiver 
20.16 	services under sections 256B.092 and 256B.49 are provided an informed decision-making 
20.17 	process that satisfies the requirements of subdivision 3a.
20.18 	(c) Lead agencies must support individuals in making informed choices by:
20.19 	(1) providing complete and accurate information about available home and 
20.20 	community-based services and settings;
20.21 	(2) providing the information in a manner that is culturally and linguistically appropriate; 
20.22 	and
20.23 	(3) facilitating access to services that reflect the individual's preferences and assessed 
20.24 	needs.
20.25 	(d) For individuals who are members of or affiliated with a federally recognized Tribal 
20.26 	Nation located within Minnesota, informed choice includes the right to receive services 
20.27 	administered or provided by the individual's Tribal Nation. Lead agencies must:
20.28 	(1) inform individuals of services offered by Tribal Nations enrolled as Minnesota health 
20.29 	care providers;
21.1 	(2) directly coordinate with the individual's Tribal Nation human services agency when 
21.2 	the individual seeks or may be eligible for services administered or provided by that Tribal 
21.3 	Nation; and
21.4 	(3) ensure that service planning and delivery respects the individual's rights as both a 
21.5 	member of a sovereign Tribal Nation and a resident of Minnesota.
21.6 	(e) County lead agencies and Tribal Nation human services agencies must establish and 
21.7 	maintain procedures to share updated contact information, coordinate case management, 
21.8 	and provide timely referrals necessary to ensure that informed choice is fully exercised.
21.9 	(f) Nothing in this section limits the sovereignty of Tribal Nations or the authority of 
21.10 	Tribal governments to administer home and community-based services to their members.

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

21.12 	Sec. 16. Minnesota Statutes 2025 Supplement, section 256B.4914, subdivision 10a, is 
21.13 	amended to read:
21.14 		Subd. 10a.Reporting and analysis of cost data. (a) The commissioner must ensure 
21.15 	that wage values and component values in subdivisions 5 to 9 reflect the cost to provide the 
21.16 	service. As determined by the commissioner, in consultation with community partners 
21.17 	identified in subdivision 17, a provider enrolled to provide services with rates determined 
21.18 	under this section must submit requested cost data to the commissioner to support research 
21.19 	on the cost of providing services that have rates determined by the disability waiver rates 
21.20 	system. Requested cost data may include, but is not limited to:
21.21 	(1) worker wage costs;
21.22 	(2) benefits paid;
21.23 	(3) supervisor wage costs;
21.24 	(4) executive wage costs;
21.25 	(5) vacation, sick, and training time paid;
21.26 	(6) taxes, workers' compensation, and unemployment insurance costs paid;
21.27 	(7) administrative costs paid;
21.28 	(8) program costs paid;
21.29 	(9) transportation costs paid;
21.30 	(10) vacancy rates; and
22.1 	(11) other data relating to costs required to provide services requested by the 
22.2 	commissioner.
22.3 	(b) At least once in any five-year period, a provider must submit cost data for a fiscal 
22.4 	year that ended not more than 18 months prior to the submission date. The commissioner 
22.5 	shall provide each provider a 90-day notice prior to its submission due date. The 
22.6 	commissioner may review report submissions for inaccurate, inconclusive, incomplete, or 
22.7 	otherwise deficient data and may remove the report from submitted status for further 
22.8 	verification. If a provider fails to submit required reporting data, the commissioner shall 
22.9 	provide notice to providers that have not provided required data 30 days after the required 
22.10 	submission date, and a second notice for providers who have not provided required data 60 
22.11 	days after the required submission date. The commissioner shall temporarily suspend 
22.12 	payments to the provider if cost data is not received 90 days after the required submission 
22.13 	date. Withheld payments shall be made once data is received and reviewed for compliance 
22.14 	by the commissioner.
22.15 	(c) The commissioner shall conduct a random validation of data submitted under 
22.16 	paragraph (a) to ensure data accuracy. Providers selected to validate cost reports must 
22.17 	respond to the commissioner within 30 days with the requested financial documentation. If 
22.18 	a provider fails to respond to the commissioner with all the requested information within 
22.19 	30 days, the commissioner must temporarily suspend payments. The commissioner must 
22.20 	resume payments once the requested documentation is received. If a provider is unable to 
22.21 	validate the provider's costs with supporting documentation, the commissioner must require 
22.22 	the provider to participate in the random validation the next year that the commissioner 
22.23 	selects providers to report their costs. The commissioner shall analyze cost documentation 
22.24 	in paragraph (a) and provide recommendations for adjustments to cost components.
22.25 	(d) The commissioner shall analyze cost data submitted under paragraph (a). The 
22.26 	commissioner shall release cost data in an aggregate form. Cost data from individual 
22.27 	providers must not be released except as provided for in current law.
22.28 	(e) Beginning January 1, 2029, the commissioner shall use data collected in paragraph 
22.29 	(a) to determine the compliance with requirements identified under subdivision 10d. The 
22.30 	commissioner shall identify providers who have not met the thresholds identified under 
22.31 	subdivision 10d on the Department of Human Services website for the year for which the 
22.32 	providers reported their costs.

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

23.1 	Sec. 17. Minnesota Statutes 2024, section 256B.5012, subdivision 21, is amended to read:
23.2 		Subd. 21.ICF/DD rate increases after January 1, 2025. Beginning January 1, 2025, 
23.3 	and every year thereafter, the minimum daily operating rates under this section must be 
23.4 	updated for the percentage change in the Consumer Price Index (CPI-U) from the previous 
23.5 	July 1 to the data available 12 months and one day prior.

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

23.7 	Sec. 18. Minnesota Statutes 2024, section 256B.851, subdivision 8, is amended to read:
23.8 		Subd. 8.Personal care provider agency; required reporting of cost data; training. (a) 
23.9 	As determined by the commissioner and in consultation with stakeholders, agencies enrolled 
23.10 	to provide services with rates determined under this section must submit requested cost data 
23.11 	to the commissioner. The commissioner may request cost data, including but not limited 
23.12 	to:
23.13 	(1) worker wage costs;
23.14 	(2) benefits paid;
23.15 	(3) supervisor wage costs;
23.16 	(4) executive wage costs;
23.17 	(5) vacation, sick, and training time paid;
23.18 	(6) taxes, workers' compensation, and unemployment insurance costs paid;
23.19 	(7) administrative costs paid;
23.20 	(8) program costs paid;
23.21 	(9) transportation costs paid;
23.22 	(10) staff vacancy rates; and
23.23 	(11) other data relating to costs required to provide services requested by the 
23.24 	commissioner.
23.25 	(b) At least once in any three-year period, a provider must submit the required cost data 
23.26 	for a fiscal year that ended not more than 18 months prior to the submission date. The 
23.27 	commissioner must provide each provider a 90-day notice prior to its submission due date. 
23.28 	The commissioner may review report submissions for inaccurate, inconclusive, incomplete, 
23.29 	or otherwise deficient data and may remove the report from submitted status for further 
23.30 	verification. If a provider fails to submit required cost data, the commissioner must provide 
24.1 	notice to a provider that has not provided required cost data 30 days after the required 
24.2 	submission date and a second notice to a provider that has not provided required cost data 
24.3 	60 days after the required submission date. The commissioner must temporarily suspend 
24.4 	payments to a provider if the commissioner has not received required cost data 90 days after 
24.5 	the required submission date. The commissioner must make withheld payments when the 
24.6 	required cost data is received and reviewed for compliance by the commissioner.
24.7 	(c) The commissioner must conduct a random validation of data submitted under this 
24.8 	subdivision to ensure data accuracy. A provider selected to validate the provider's cost 
24.9 	reports must respond to the commissioner within 30 days with the requested financial 
24.10 	documentation. If a provider fails to respond to the commissioner with the requested 
24.11 	information within 30 days, the commissioner must temporarily suspend payments. The 
24.12 	commissioner must resume payments once the requested documentation is received. If a 
24.13 	provider is unable to validate the provider's costs with supporting documentation, the 
24.14 	commissioner must require the provider to participate in the random validation the next 
24.15 	year that the commissioner selects providers to report their costs. The commissioner shall 
24.16 	analyze cost documentation in paragraph (a) and provide recommendations for adjustments 
24.17 	to cost components.
24.18 	(d) The commissioner, in consultation with stakeholders, must develop and implement 
24.19 	a process for providing training and technical assistance necessary to support provider 
24.20 	submission of cost data required under this subdivision.

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

24.22 	Sec. 19. Minnesota Statutes 2024, section 256S.21, subdivision 3, is amended to read:
24.23 		Subd. 3.Cost reporting. (a) As determined by the commissioner, in consultation with 
24.24 	stakeholders, a provider enrolled to provide services with rates determined under this chapter 
24.25 	must submit requested cost data to the commissioner to support evaluation of the rate 
24.26 	methodologies in this chapter. Requested cost data may include but are not limited to:
24.27 	(1) worker wage costs;
24.28 	(2) benefits paid;
24.29 	(3) supervisor wage costs;
24.30 	(4) executive wage costs;
24.31 	(5) vacation, sick, and training time paid;
24.32 	(6) taxes, workers' compensation, and unemployment insurance costs paid;
25.1 	(7) administrative costs paid;
25.2 	(8) program costs paid;
25.3 	(9) transportation costs paid;
25.4 	(10) vacancy rates; and
25.5 	(11) other data relating to costs required to provide services requested by the 
25.6 	commissioner.
25.7 	(b) At least once in any five-year period, a provider must submit the required cost data 
25.8 	for a fiscal year that ended not more than 18 months prior to the submission date. The 
25.9 	commissioner shall must provide each provider a 90-day notice prior to the provider's 
25.10 	submission due date. The commissioner may review report submissions for inaccurate, 
25.11 	inconclusive, incomplete, or otherwise deficient data and may remove the report from 
25.12 	submitted status for further verification. If by 30 days after the required submission date a 
25.13 	provider fails to submit required reporting data, the commissioner shall must provide notice 
25.14 	to the provider, and. If by 60 days after the required submission date a provider has not 
25.15 	provided the required data, the commissioner shallmust provide a second notice. The 
25.16 	commissioner shall must temporarily suspend payments to the a provider if the commissioner 
25.17 	has not received the required cost data is not received 90 days after the required submission 
25.18 	date or 90 days after the Department of Human Services requests updated data. The 
25.19 	commissioner must make withheld payments must be made once data is received when the 
25.20 	required cost data is received and reviewed for compliance by the commissioner.
25.21 	(c) The commissioner shall coordinate the cost reporting activities required under this 
25.22 	section with the cost reporting activities directed under section 256B.4914, subdivision 10a.
25.23 	(d) The commissioner shall analyze cost documentation in paragraph (a) and, in 
25.24 	consultation with stakeholders, may submit recommendations on rate methodologies in this 
25.25 	chapter, including ways to monitor and enforce the spending requirements directed in section 
25.26 	256S.2101, subdivision 3, 256S.211, subdivision 4, through the reports directed by 
25.27 	subdivision 2.

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

25.29 	Sec. 20. Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision 
25.30 	to read:
25.31 		Subd. 1a.Adult protective services. Adult protective services must receive referrals 
25.32 	from the common entry point and carry out lead investigative agency duties to investigate 
26.1 	for a determination of responsibility for maltreatment. When the county social services 
26.2 	agency is the lead investigative agency, or when the Department of Human Services or 
26.3 	Department of Health in the role of the lead investigative agency request adult protective 
26.4 	services, adult protective services must conduct assessments, develop services plans, and 
26.5 	implement interventions to safeguard adults who are vulnerable and suspected of experiencing 
26.6 	maltreatment. Adult protective services must conclude services following final determination 
26.7 	of maltreatment and the adult is assessed as safe. The Department of Human Services is the 
26.8 	state agency responsible for supervision of adult protective services administered by county 
26.9 	social services agencies.

26.10 	Sec. 21. Minnesota Statutes 2024, section 626.557, subdivision 9, is amended to read:
26.11 		Subd. 9.Common entry point designation. (a) The commissioner of human services 
26.12 	shall establish a common entry point. The common entry point is the unit responsible for 
26.13 	receiving the report of suspected maltreatment under this section.
26.14 	(b) The common entry point must be available 24 hours per day to take callsaccept 
26.15 	reports from reporters of suspected maltreatment and make required referrals for suspected 
26.16 	maltreatment of a vulnerable adult. The common entry point shall use a standard intake 
26.17 	form that includes:
26.18 	(1) the time and date of the report;
26.19 	(2) the name, relationship, and identifying and contact information for the person believed 
26.20 	to be a vulnerable adult and the individual or facility alleged responsible for maltreatment;
26.21 	(3) the name, relationship, and contact information for the:
26.22 	(i) reporter;
26.23 	(ii) initial reporter, witnesses, and persons who may have knowledge about the 
26.24 	maltreatment; and
26.25 	(iii) legal surrogate and persons who may provide support to the vulnerable adult;
26.26 	(4) the basis of vulnerability for the vulnerable adult;
26.27 	(5) the time, date, and location of the incident;
26.28 	(6) the immediate safety risk to the vulnerable adult;
26.29 	(7) a description of the suspected maltreatment;
26.30 	(8) the impact of the suspected maltreatment on the vulnerable adult;
26.31 	(9) whether a facility was involved and, if so, which agency licenses the facility;
27.1 	(10) the actions taken to protect the vulnerable adult;
27.2 	(11) the required notifications and referrals made by the common entry point; and
27.3 	(12) whether the reporter wishes to receive notification of the disposition.
27.4 	(c) The common entry point is not required to complete each item on the form prior to 
27.5 	dispatching the report to the appropriate lead investigative agency.
27.6 	(d) The common entry point shall immediately report to a law enforcement agency any 
27.7 	incident in which there is reason to believe a crime has been committed.
27.8 	(e) If a report is initially made to a law enforcement agency or a lead investigative agency, 
27.9 	those agencies shall take the report on the appropriate common entry point intake forms 
27.10 	and immediately forward a copy to the common entry point.
27.11 	(f) The common entry point staff must receive training on how to screen and dispatch 
27.12 	reports efficiently and in accordance with this section.
27.13 	(g) The commissioner of human services shall maintain a centralized database for the 
27.14 	collection of common entry point data, lead investigative agency data including maltreatment 
27.15 	report disposition, and appeals data. The common entry point shall have access to the 
27.16 	centralized database and must log the reports into the database.
27.17 	(h) When appropriate, the common entry point staff must refer calls that do not allege 
27.18 	the abuse, neglect, or exploitation of a vulnerable adult to other organizations that might 
27.19 	resolve the reporter's concerns.
27.20 	(i) A common entry point must be operated in a manner that enables the commissioner 
27.21 	of human services to:
27.22 	(1) track critical steps in the reporting, evaluation, referral, response, disposition, and 
27.23 	investigative process to ensure compliance with all requirements for all reports;
27.24 	(2) maintain data to facilitate the production of aggregate statistical reports for monitoring 
27.25 	patterns of abuse, neglect, or exploitation;
27.26 	(3) serve as a resource for the evaluation, management, and planning of preventative 
27.27 	and remedial services for vulnerable adults who have been subject to abuse, neglect, or 
27.28 	exploitation;
27.29 	(4) set standards, priorities, and policies to maximize the efficiency and effectiveness 
27.30 	of the common entry point; and
27.31 	(5) track and manage consumer complaints related to the common entry point.
28.1 	(j) The commissioners of human services and health shall collaborate on the creation of 
28.2 	a system for referring reports to the lead investigative agencies. This system shall enable 
28.3 	the commissioner of human services to track critical steps in the reporting, evaluation, 
28.4 	referral, response, disposition, investigation, notification, determination, and appeal processes.

28.5 	Sec. 22. Minnesota Statutes 2024, section 626.557, subdivision 9a, is amended to read:
28.6 		Subd. 9a.Evaluation and referral of reports made to common entry point. (a) The 
28.7 	common entry point must screen the reports of alleged or suspected maltreatment for 
28.8 	immediate risk and make all necessary referrals as follows using the referral guidelines 
28.9 	established by the commissioner and the following:
28.10 	(1) if the common entry point determines that there is an immediate need for emergency 
28.11 	adult protective services, the common entry point agency shall immediately notify the 
28.12 	appropriate county agency;
28.13 	(2) if the report contains suspected criminal activity against a vulnerable adult, the 
28.14 	common entry point shall immediately notify the appropriate law enforcement agency;
28.15 	(3) the common entry point shall refer all reports of alleged or suspected maltreatment 
28.16 	to the appropriate lead investigative agency as soon as possible, but in any event no longer 
28.17 	than two working days;
28.18 	(4) if the report contains information about a suspicious death, the common entry point 
28.19 	shall immediately notify the appropriate law enforcement agencies, the local medical 
28.20 	examiner, and the ombudsman for mental health and developmental disabilities established 
28.21 	under section 245.92. Law enforcement agencies shall coordinate with the local medical 
28.22 	examiner and the ombudsman as provided by law; and
28.23 	(5) for reports involving multiple locations or changing circumstances, the common 
28.24 	entry point shall determine the county agency responsible for emergency adult protective 
28.25 	services and the county responsible as the lead investigative agency, using referral guidelines 
28.26 	established by the commissioner.
28.27 	(b) If the lead investigative agency receiving a report believes the report was referred 
28.28 	by the common entry point in error, the lead investigative agency shall immediately notify 
28.29 	the common entry point of the error, including the basis for the lead investigative agency's 
28.30 	belief that the referral was made in error. The common entry point shall review the 
28.31 	information submitted by the lead investigative agency and immediately refer the report to 
28.32 	the appropriate lead investigative agency using the referral guidelines established by the 
28.33 	commissioner.

29.1 	Sec. 23. Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision 
29.2 	to read:
29.3 		Subd. 11b.County social services agency; responsibilities. The county social services 
29.4 	agency is responsible for supervision of:
29.5 	(1) intake decisions for initial disposition of the report;
29.6 	(2) agency prioritization used to screen out an adult meeting eligibility for adult protective 
29.7 	services as vulnerable and maltreated;
29.8 	(3) safety, assessment, and services plans;
29.9 	(4) protective service interventions;
29.10 	(5) use of guardianship and other involuntary interventions;
29.11 	(6) final determination for maltreatment; and
29.12 	(7) case closure decisions.

29.13 	Sec. 24. Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision 
29.14 	to read:
29.15 		Subd. 11c.County social services agency; referrals. (a) When the common entry point 
29.16 	refers a report to the county social services agency as the lead investigative agency or makes 
29.17 	a referral to the county social services agency for emergency adult protective services, or 
29.18 	when another lead investigative agency requests adult protective services from the county 
29.19 	social services agency for an adult referred to that lead investigative agency by the common 
29.20 	entry point, the county social services agency must use the data report system and 
29.21 	standardized decision and assessment tools provided by the commissioner of human services. 
29.22 	The information entered by the county social services agency into the data system and 
29.23 	standardized tools must be accessible to the Department of Human Services for the 
29.24 	department to meet federal requirements, evaluate consistent application of policy, review 
29.25 	quality of services and outcomes for adults, and meet requirements for background studies 
29.26 	and disqualification of individuals determined responsible for vulnerable adult maltreatment 
29.27 	under chapter 245C.
29.28 	(b) The county social services agency must screen the report using the standardized tools 
29.29 	provided by the commissioner to determine:
29.30 	(1) whether the referred adult meets adult protective services eligibility as potentially 
29.31 	vulnerable and maltreated under this section; and
30.1 	(2) the response time required to initiate adult protective services.
30.2 	(c) For reports referred by the common entry point for emergency adult protective 
30.3 	services, the county social services agency must immediately screen the report to determine 
30.4 	whether the adult should be accepted for emergency adult protective services. If the adult 
30.5 	is accepted for emergency adult protective services, the county social services agency must 
30.6 	immediately offer protective services to prevent further maltreatment and safeguard the 
30.7 	welfare of the vulnerable adult. Assessment of adults accepted by the county social services 
30.8 	agency for emergency protective services must be conducted in person by the agency or a 
30.9 	designee within 24 hours of the agency receiving the referral. When sexual or physical 
30.10 	abuse is suspected, the county social services agency must immediately arrange for and 
30.11 	make available to the vulnerable adult appropriate medical examination and services.
30.12 	(d) For reports referred by the common entry point to the county as lead investigative 
30.13 	agency, the county social services agency must screen the report and make an initial 
30.14 	determination within seven calendar days following receipt of the report from the common 
30.15 	entry point on whether the adult should be accepted for adult protective services.
30.16 	(e) For referrals made for adult protective services by the Department of Human Services 
30.17 	or the Department of Health in the applicable department's role as the lead investigative 
30.18 	agency responsible for reports made under this section, the county social services agency 
30.19 	must screen the report and determine within seven calendar days following receipt of referral 
30.20 	whether the adult should be accepted for adult protective services.
30.21 	(f) If an adult meets eligibility requirements but is not accepted for adult protective 
30.22 	services based on local agency prioritization, the agency must document the reason for the 
30.23 	screening decision in the standardized tool provided by the commissioner.

30.24 	Sec. 25. Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision 
30.25 	to read:
30.26 		Subd. 11d.County social services agency; assessments. (a) For adults accepted into 
30.27 	adult protective services, the county social services agency must decide, prior to initiation 
30.28 	of assessment activities, if the agency must also conduct an investigation for final disposition 
30.29 	for responsibility of maltreatment in addition to the assessment for adult protective services.
30.30 	(b) The county social services agency must conduct assessments concurrently with 
30.31 	investigations when: (1) the county is both the lead investigative agency and responsible 
30.32 	for making a final determination of responsibility for maltreatment; or (2) another lead 
31.1 	investigative agency responsible for the final determination of maltreatment requests 
31.2 	assistance from the county social services agency.
31.3 	(c) The county social services agency must conduct an in-person assessment to initiate 
31.4 	adult protective services:
31.5 	(1) within 24 hours of accepting a referral for emergency protective services;
31.6 	(2) within 24 hours of making an initial disposition that the adult is in immediate need 
31.7 	of protection, unless an in-person response would endanger the safety of the adult; or
31.8 	(3) within 72 hours but in no instance later than seven calendar days from the first 
31.9 	business day after receiving the report for adults accepted for adult protective services.
31.10 	(d) The county social services agency must use the standardized decision, assessment, 
31.11 	and service planning tools provided by the commissioner with all vulnerable adults accepted 
31.12 	for adult protective services. The county social services agency must involve the vulnerable 
31.13 	adult in the assessment and service plan. The county social services agency must document 
31.14 	and update assessment and service plans consistent with significant changes in the vulnerable 
31.15 	adult's health and safety.
31.16 	(e) The county social services agency must notify the vulnerable adult and, if applicable, 
31.17 	the guardian or health care agent of the vulnerable adult of the results of the assessment and 
31.18 	service plan, including but not limited to recommendations for protective services intervention 
31.19 	to stop or prevent maltreatment and to protect the vulnerable adult's health, safety, and 
31.20 	comfort. When necessary to prevent further maltreatment or safeguard the vulnerable adult, 
31.21 	the county social services agency may share the results of the assessment with the vulnerable 
31.22 	adult's primary supports.

31.23 	Sec. 26. Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision 
31.24 	to read:
31.25 		Subd. 11e.County social services agency; investigations. (a) The county social services 
31.26 	agency must investigate for a final disposition of responsibility for maltreatment for an 
31.27 	allegation of:
31.28 	(1) abuse;
31.29 	(2) financial abuse by a fiduciary;
31.30 	(3) financial exploitation involving a nonfiduciary that may be criminal or that involved 
31.31 	force, coercion, harassment, deception, fraud, undue influence, or a scam;
31.32 	(4) financial exploitation that involved another type of maltreatment;
32.1 	(5) caregiver neglect by a paid caregiver or personal care assistance provider under 
32.2 	chapter 256B;
32.3 	(6) caregiver neglect by an unpaid caregiver that resulted in intentional harm to the 
32.4 	vulnerable adult or involved another type of maltreatment; and
32.5 	(7) a situation for which the county social services agency finds that a determination of 
32.6 	responsibility of maltreatment may safeguard a vulnerable adult or prevent further 
32.7 	maltreatment.
32.8 	(b) The county social services agency must conduct an investigation for final disposition 
32.9 	of responsibility for maltreatment if the agency receives information during an assessment 
32.10 	that indicates the presence of any scenario listed in paragraph (a) or subdivision 11f.

32.11 	Sec. 27. Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision 
32.12 	to read:
32.13 		Subd. 11f.County social services agency; self-neglect. (a) The county social services 
32.14 	agency may determine that an allegation that does not result in a determination of 
32.15 	responsibility for maltreatment is:
32.16 	(1) self-neglect;
32.17 	(2) neglect by an unpaid caregiver that did not result in intentional harm to the vulnerable 
32.18 	adult and did not involve another type of alleged maltreatment; or
32.19 	(3) financial exploitation by a nonfiduciary that is consistent with the choice of the adult 
32.20 	and not criminal or involving force, coercion, harassment, deception, fraud, undue influence, 
32.21 	a scam, or another type of alleged maltreatment.
32.22 	(b) An allegation of self-neglect is a substantiated determination if the county social 
32.23 	services agency determines that adult protective services are needed.

32.24 	Sec. 28. Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision 
32.25 	to read:
32.26 		Subd. 11g.County social services agency; initial contact. (a) At the initial contact 
32.27 	with the vulnerable adult accepted by the county social services agency, the agency must 
32.28 	provide the vulnerable adult with information about the process for adult protective services 
32.29 	and the vulnerable adult's rights as an adult protective client.
32.30 	(b) At initial contact, the county social services agency must inform the individual or 
32.31 	entity alleged responsible for maltreatment of the allegation in a manner consistent with 
33.1 	requirements under this section to protect the identity of the reporter. The interview with 
33.2 	the individual or entity alleged responsible for maltreatment may be postponed at the request 
33.3 	of a law enforcement agency or if the interview may endanger the safety of the vulnerable 
33.4 	adult.

33.5 	Sec. 29. Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision 
33.6 	to read:
33.7 		Subd. 11h.County social services agency; agency authority. (a) A county social 
33.8 	services agency may enter all facilities and business premises of a licensed provider to 
33.9 	inspect and copy records as part of an adult protective services assessment or investigation. 
33.10 	The licensed provider must provide the county social services agency access to not public 
33.11 	data as defined in section 13.02, subdivision 8a, and medical records under sections 144.291 
33.12 	to 144.298 that are maintained at the facilities and business premises to the extent that the 
33.13 	data and records are necessary to conduct the agency's investigation. The licensed provider 
33.14 	must provide the county social services agency access to all available sources of information 
33.15 	at the facilities and business premises, not only written records.
33.16 	(b) When necessary in order to protect a vulnerable adult from serious harm from 
33.17 	maltreatment, the county social services agency may seek any of the following protective 
33.18 	services interventions:
33.19 	(1) emergency protective services;
33.20 	(2) participation of law enforcement or emergency medical services;
33.21 	(3) authority from a court to remove an adult from the situation in which maltreatment 
33.22 	occurred;
33.23 	(4) a restraining order or court order for removal of the perpetrator from the residence 
33.24 	of the vulnerable adult pursuant to section 518.01;
33.25 	(5) a referral for a financial transaction hold under chapter 45A or a protective 
33.26 	arrangement under this chapter or chapter 524;
33.27 	(6) a referral for a representative payee;
33.28 	(7) a referral to the prosecuting attorney for possible criminal prosecution of the 
33.29 	perpetrator under chapter 609;
33.30 	(8) the appointment or replacement of a guardian or conservator pursuant to sections 
33.31 	524.5-101 to 524.5-502, or guardianship or conservatorship pursuant to chapter 252A when 
34.1 	maltreatment has been substantiated and when less restrictive interventions are not sufficient 
34.2 	to stop or reduce the risk of serious harm from maltreatment; and
34.3 	(9) other interventions recommended by a multidisciplinary team under this section.
34.4 	(c) The county social services agency may seek the protective services interventions 
34.5 	under paragraph (b) regardless of the vulnerable adult's voluntary or involuntary participation.
34.6 	(d) The county social services agency may offer voluntary service interventions to 
34.7 	support the vulnerable adult or primary supports to stop, reduce the risk for, or prevent 
34.8 	subsequent maltreatment.

34.9 	Sec. 30. Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision 
34.10 	to read:
34.11 		Subd. 11i.County social services agency; legal intervention. (a) In proceedings under 
34.12 	sections 524.5-101 to 524.5-502, if a suitable relative or other person is not available to 
34.13 	petition for guardianship or conservatorship, a county employee must present the petition 
34.14 	with representation by the county attorney. The county must contract with or arrange for a 
34.15 	suitable person or organization to provide ongoing guardianship services. If the county 
34.16 	presents evidence to the court exercising probate jurisdiction that the county has made 
34.17 	diligent effort and no other suitable person can be found, a county employee may serve as 
34.18 	guardian or conservator.
34.19 	(b) The county must not retaliate against the employee for any action taken on behalf 
34.20 	of the person subject to guardianship or conservatorship, even if the action is adverse to the 
34.21 	county's interests. Any person retaliated against in violation of this subdivision shall have 
34.22 	a cause of action against the county and is entitled to reasonable attorney fees and costs of 
34.23 	the action if the action is upheld by the court.
34.24 	(c) The expenses of a legal intervention must be paid by the county in the case of indigent 
34.25 	persons under section 524.5-502 and chapter 563.

34.26 	Sec. 31. Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision 
34.27 	to read:
34.28 		Subd. 11j.County social services agency; conflict of interest. (a) A county that 
34.29 	identifies a potential conflict of interest under paragraph (c) related to an investigation, 
34.30 	assessment, or protective services intervention must coordinate with another county social 
34.31 	services agency to delegate the initial county's authority as the lead investigative agency to 
34.32 	remediate the potential conflict. County social services agencies must cooperate and accept 
35.1 	jurisdiction when an initial county social services agency identifies a potential conflict of 
35.2 	interest and requests the other county's assistance.
35.3 	(b) The initial county must notify the commissioner of human services when no other 
35.4 	county is available to accept delegation of adult protective services duties. If the 
35.5 	commissioner is notified that no other county is available, the commissioner may use the 
35.6 	authority under subdivision 9a to determine the county social services agency responsible 
35.7 	as lead investigative agency and for adult protective services.
35.8 	(c) A county social services agency employee or designee must not have:
35.9 	(1) a personal or family relationship with a party in the investigation or assessment;
35.10 	(2) a dual relationship, as defined in Code of Federal Regulations, title 45, section 
35.11 	1324.401, with the vulnerable adult;
35.12 	(3) a personal financial interest or financial relationship with a provider receiving referrals 
35.13 	from the employee; or
35.14 	(4) any other appearance of conflict of interest as determined by the county social services 
35.15 	agency.

35.16 	Sec. 32. Minnesota Statutes 2024, section 626.557, subdivision 12b, is amended to read:
35.17 		Subd. 12b.Data management. (a) In performing any of the duties of this section as a 
35.18 	lead investigative agency, the county social service services agency shall maintain appropriate 
35.19 	records. Data collected by the county social service services agency under this section while 
35.20 	providing adult protective services are welfare data under section 13.46. Investigative data 
35.21 	collected under this section are confidential data on individuals or protected nonpublic data 
35.22 	as defined under section 13.02. Notwithstanding section 13.46, subdivision 1, paragraph 
35.23 	(a), data under this paragraph that are inactive investigative data on an individual who is a 
35.24 	vendor of services are private data on individuals, as defined in section 13.02. The identity 
35.25 	of the reporter may only be disclosed as provided in paragraph (c).
35.26 	Data maintained by the common entry point are confidential data on individuals or 
35.27 	protected nonpublic data as defined in section 13.02. Notwithstanding section 138.163, the 
35.28 	common entry point shall maintain data for three calendar years after date of receipt and 
35.29 	then destroy the data unless otherwise directed by federal requirements.
35.30 	(b) The commissioners of health and human services shall prepare an investigation 
35.31 	memorandum for each report alleging maltreatment investigated under this section. County 
35.32 	social service services agencies must maintain private data on individuals but are not required 
36.1 	to prepare an investigation memorandum. During an investigation by the commissioner of 
36.2 	health or the commissioner of human services, data collected under this section are 
36.3 	confidential data on individuals or protected nonpublic data as defined in section 13.02. 
36.4 	Upon completion of the investigation, the data are classified as provided in clauses (1) to 
36.5 	(3) and paragraph (c).
36.6 	(1) The investigation memorandum must contain the following data, which are public:
36.7 	(i) the name of the facility investigated;
36.8 	(ii) a statement of the nature of the alleged maltreatment;
36.9 	(iii) pertinent information obtained from medical or other records reviewed;
36.10 	(iv) the identity of the investigator;
36.11 	(v) a summary of the investigation's findings;
36.12 	(vi) statement of whether the report was found to be substantiated, inconclusive, false, 
36.13 	or that no determination will be made;
36.14 	(vii) a statement of any action taken by the facility;
36.15 	(viii) a statement of any action taken by the lead investigative agency; and
36.16 	(ix) when a lead investigative agency's determination has substantiated maltreatment, a 
36.17 	statement of whether an individual, individuals, or a facility were responsible for the 
36.18 	substantiated maltreatment, if known.
36.19 	The investigation memorandum must be written in a manner which protects the identity 
36.20 	of the reporter and of the vulnerable adult and may not contain the names or, to the extent 
36.21 	possible, data on individuals or private data listed in clause (2).
36.22 	(2) Data on individuals collected and maintained in the investigation memorandum are 
36.23 	private data, including:
36.24 	(i) the name of the vulnerable adult;
36.25 	(ii) the identity of the individual alleged to be the perpetrator;
36.26 	(iii) the identity of the individual substantiated as the perpetrator; and
36.27 	(iv) the identity of all individuals interviewed as part of the investigation.
36.28 	(3) Other data on individuals maintained as part of an investigation under this section 
36.29 	are private data on individuals upon completion of the investigation.
37.1 	(c) The name of the reporter must be confidential. The subject of the report may compel 
37.2 	disclosure of the name of the reporter only with the consent of the reporter or upon a written 
37.3 	finding by a court that the report was false and there is evidence that the report was made 
37.4 	in bad faith. This subdivision does not alter disclosure responsibilities or obligations under 
37.5 	the Rules of Criminal Procedure, except that where the identity of the reporter is relevant 
37.6 	to a criminal prosecution, the district court shall do an in-camera review prior to determining 
37.7 	whether to order disclosure of the identity of the reporter.
37.8 	(d) Notwithstanding section 138.163, data maintained under this section by the 
37.9 	commissioners of health and human services and county adult protective services must be 
37.10 	maintained under the following schedule and then destroyed unless otherwise directed by 
37.11 	federal requirements:
37.12 	(1) data from reports determined to be false, maintained for three years after the finding 
37.13 	was made for reports under the jurisdiction of the Department of Human Services or the 
37.14 	Department of Health and five years after the finding was made for reports under the 
37.15 	jurisdiction of county adult protective services;
37.16 	(2) data from reports determined to be inconclusive, maintained for four years after the 
37.17 	finding was made for reports under the jurisdiction of the Department of Human Services 
37.18 	or the Department of Health and five years after the finding was made for reports under the 
37.19 	jurisdiction of county adult protective services;
37.20 	(3) data from reports determined to be substantiated, maintained for seven years after 
37.21 	the finding was made; and
37.22 	(4) data from reports which were not investigated by a lead investigative agency and for 
37.23 	which there is no final disposition, maintained for three years from the date of the report
37.24 	for reports under the jurisdiction of the Department of Human Services or the Department 
37.25 	of Health and five years from the date of the report for reports under the jurisdiction of 
37.26 	county adult protective services.
37.27 	(e) The commissioners of health and human services shall annually publish on their 
37.28 	websites the number and type of reports of alleged maltreatment involving licensed facilities 
37.29 	reported under this section, the number of those requiring investigation under this section, 
37.30 	and the resolution of those investigations.
37.31 	(f) Each lead investigative agency must have a record retention policy.
37.32 	(g) (f) Lead investigative agencies, county agencies responsible for adult protective 
37.33 	services, prosecuting authorities, and law enforcement agencies may exchange not public 
38.1 	data, as defined in section 13.02, with a tribal agency, facility, service provider, vulnerable 
38.2 	adult, primary support person for a vulnerable adult, emergency management service, 
38.3 	financial institution, medical examiner, state licensing board, federal or state agency, the 
38.4 	ombudsman for long-term care, or the ombudsman for mental health and developmental 
38.5 	disabilities, if the agency or authority providing the data determines that the data are pertinent 
38.6 	and necessary to prevent further maltreatment of a vulnerable adult, to safeguard a vulnerable 
38.7 	adult, or for an investigation under this section. Data collected under this section must be 
38.8 	made available to prosecuting authorities and law enforcement officials, local county 
38.9 	agencies, the commissioner of human services as the state Medicaid agency, and licensing 
38.10 	agencies investigating the alleged maltreatment under this section. The lead investigative 
38.11 	agency shall exchange not public data with the vulnerable adult maltreatment review panel 
38.12 	established in section 256.021 if the data are pertinent and necessary for a review requested 
38.13 	under that section. Notwithstanding section 138.17, upon completion of the review, not 
38.14 	public data received by the review panel must be destroyed.
38.15 	(h) (g) Each lead investigative agency shall keep records of the length of time it takes 
38.16 	to complete its investigations.
38.17 	(i) (h) A lead investigative agency may notify other affected parties and their authorized 
38.18 	representative if the lead investigative agency has reason to believe maltreatment has occurred 
38.19 	and determines the information will safeguard the well-being of the affected parties or dispel 
38.20 	widespread rumor or unrest in the affected facility.
38.21 	(j) (i) Under any notification provision of this section, where federal law specifically 
38.22 	prohibits the disclosure of patient identifying information, a lead investigative agency may 
38.23 	not provide any notice unless the vulnerable adult has consented to disclosure in a manner 
38.24 	which conforms to federal requirements.
38.25 	(j) When a county agency acting as the lead investigative agency is aware the person 
38.26 	determined responsible for maltreatment is a guardian or conservator appointed under 
38.27 	chapter 524, the county agency must share the final determination with the Minnesota 
38.28 	Judicial Branch within 14 calendar days of the determination.

38.29 	Sec. 33. Minnesota Statutes 2024, section 626.5572, subdivision 2, is amended to read:
38.30 		Subd. 2.Abuse. "Abuse" means:
38.31 	(a) An act against a vulnerable adult that constitutes a violation of, an attempt to violate, 
38.32 	or aiding and abetting a violation of:
38.33 	(1) assault in the first through fifth degrees as defined in sections 609.221 to 609.224;
39.1 	(2) the use of drugs to injure or facilitate crime as defined in section 609.235;
39.2 	(3) the solicitation, inducement, and promotion of prostitution as defined in section 
39.3 	609.322; and
39.4 	(4) criminal sexual conduct in the first through fifth degrees as defined in sections 
39.5 	609.342 to 609.3451.
39.6 	A violation includes any action that meets the elements of the crime, regardless of 
39.7 	whether there is a criminal proceeding or conviction.
39.8 	(b) Conduct which is not an accident or therapeutic conduct as defined in this section, 
39.9 	which produces or could reasonably be expected to produce physical pain or injury or 
39.10 	emotional distress including, but not limited to, the following:
39.11 	(1) hitting, slapping, kicking, pinching, biting, or corporal punishment of a vulnerable 
39.12 	adult;
39.13 	(2) use of repeated or malicious oral, written, or gestured language toward a vulnerable 
39.14 	adult or the treatment of a vulnerable adult which would be considered by a reasonable 
39.15 	person to be disparaging, derogatory, humiliating, harassing, or threatening; or
39.16 	(3) use of any aversive or deprivation procedure, unreasonable confinement, or 
39.17 	involuntary seclusion, including the forced separation of the vulnerable adult from other 
39.18 	persons against the will of the vulnerable adult or the legal representative of the vulnerable 
39.19 	adult unless authorized under applicable licensing requirements or Minnesota Rules, chapter 
39.20 	9544.
39.21 	(c) Any contact with the vulnerable adult that is not therapeutic conduct and a reasonable 
39.22 	person would consider a sexual act or any nonconsensual sexual interaction with the 
39.23 	vulnerable adult, including but not limited to:
39.24 	(1) making, viewing, or sharing sexual images or videos with or of the vulnerable adult; 
39.25 	and
39.26 	(2) using oral, written, gestured, or electronic communication that is sexually harassing, 
39.27 	including but not limited to unwelcome sexual advances or requests for sexual favors.
39.28 	(c) (d) Any sexual contact or penetration as defined in section 609.341, between a facility 
39.29 	staff person or a person providing services in the facility and a resident, patient, or client 
39.30 	of that facility.
39.31 	(d) (e) The act of forcing, compelling, coercing, or enticing a vulnerable adult against 
39.32 	the vulnerable adult's will to perform services for the advantage of another.
40.1 	(e) (f) For purposes of this section, a vulnerable adult is not abused for the sole reason 
40.2 	that the vulnerable adult or a person with authority to make health care decisions for the 
40.3 	vulnerable adult under sections 144.651, 144A.44, chapter 145B, 145C or 252A, or section 
40.4 	253B.03 or 524.5-313, refuses consent or withdraws consent, consistent with that authority 
40.5 	and within the boundary of reasonable medical practice, to any therapeutic conduct, including 
40.6 	any care, service, or procedure to diagnose, maintain, or treat the physical or mental condition 
40.7 	of the vulnerable adult or, where permitted under law, to provide nutrition and hydration 
40.8 	parenterally or through intubation. This paragraph does not enlarge or diminish rights 
40.9 	otherwise held under law by:
40.10 	(1) a vulnerable adult or a person acting on behalf of a vulnerable adult, including an 
40.11 	involved family member, to consent to or refuse consent for therapeutic conduct; or
40.12 	(2) a caregiver to offer or provide or refuse to offer or provide therapeutic conduct.
40.13 	(f) (g) For purposes of this section, a vulnerable adult is not abused for the sole reason 
40.14 	that the vulnerable adult, a person with authority to make health care decisions for the 
40.15 	vulnerable adult, or a caregiver in good faith selects and depends upon spiritual means or 
40.16 	prayer for treatment or care of disease or remedial care of the vulnerable adult in lieu of 
40.17 	medical care, provided that this is consistent with the prior practice or belief of the vulnerable 
40.18 	adult or with the expressed intentions of the vulnerable adult.
40.19 	(g) (h) For purposes of this section, a vulnerable adult is not abused for the sole reason 
40.20 	that the vulnerable adult, who is not impaired in judgment or capacity by mental or emotional 
40.21 	dysfunction or undue influence, engages in consensual sexual contact with:
40.22 	(1) a person, including a facility staff person, when a consensual sexual personal 
40.23 	relationship existed prior to the caregiving relationship; or
40.24 	(2) a personal care attendant, regardless of whether the consensual sexual personal 
40.25 	relationship existed prior to the caregiving relationship.

40.26 	Sec. 34. Minnesota Statutes 2024, section 626.5572, is amended by adding a subdivision 
40.27 	to read:
40.28 		Subd. 3a.Adult protective services. "Adult protective services" means an adult 
40.29 	protection program administered by a county social services agency under the authority of 
40.30 	the agency's governing body or delegated to a Tribal government by the commissioner of 
40.31 	human services to support adults referred for maltreatment to live safely and with dignity.

41.1 	Sec. 35. Minnesota Statutes 2024, section 626.5572, is amended by adding a subdivision 
41.2 	to read:
41.3 		Subd. 3b.Assessment. "Assessment" means a structured process conducted by a county 
41.4 	social services agency to review the safety, strengths, and needs of an adult referred as 
41.5 	vulnerable and maltreated and accepted by the agency for adult protective services and to 
41.6 	develop a service plan to stop, prevent, and reduce risk of maltreatment for the adult using 
41.7 	standardized tools provided by the Department of Human Services.

41.8 	Sec. 36. Minnesota Statutes 2024, section 626.5572, subdivision 9, is amended to read:
41.9 		Subd. 9.Financial exploitation. "Financial exploitation" means:
41.10 	(a) In breach of a fiduciary obligation recognized elsewhere in law, including pertinent 
41.11 	regulations, contractual obligations, documented consent by a competent person, or the 
41.12 	obligations of a responsible party under section 144.6501, a person:
41.13 	(1) engages in unauthorized expenditure of funds entrusted to the actor by the vulnerable 
41.14 	adult which results or is likely to result in detriment to the vulnerable adult; or
41.15 	(2) fails to use the financial resources of the vulnerable adult to provide food, clothing, 
41.16 	shelter, health care, therapeutic conduct or supervision for the vulnerable adult, and the 
41.17 	failure results or is likely to result in detriment to the vulnerable adult.
41.18 	(b) In the absence of legal authority a person:
41.19 	(1) willfully uses, withholds, or disposes of funds or property of a vulnerable adult;
41.20 	(2) obtains for the actor or another the performance of services by a third person the 
41.21 	vulnerable adult for the wrongful profit or advantage of the actor or another to the detriment 
41.22 	of the vulnerable adult;
41.23 	(3) acquires possession or control of, or an interest in, funds or property of a vulnerable 
41.24 	adult through the use of undue influence, harassment, duress, deception, or fraud; or
41.25 	(4) forces, compels, coerces, or entices a vulnerable adult against the vulnerable adult's 
41.26 	will to perform services for the profit or advantage of another.
41.27 	(c) Nothing in this definition requires a facility or caregiver to provide financial 
41.28 	management or supervise financial management for a vulnerable adult except as otherwise 
41.29 	required by law.

42.1 	Sec. 37. Minnesota Statutes 2024, section 626.5572, is amended by adding a subdivision 
42.2 	to read:
42.3 		Subd. 12a.Investigation. "Investigation" means activities for fact gathering conducted 
42.4 	by the lead investigative agency to make a final determination of maltreatment.

42.5 	Sec. 38. Minnesota Statutes 2025 Supplement, section 626.5572, subdivision 13, is amended 
42.6 	to read:
42.7 		Subd. 13.Lead investigative agency. "Lead investigative agency" is the primary 
42.8 	administrative agency responsible for investigating reports made under section 626.557.
42.9 	(a) The Department of Health is the lead investigative agency for facilities or services 
42.10 	licensed or required to be licensed as hospitals, home care providers, nursing homes, boarding 
42.11 	care homes, hospice providers, residential facilities that are also federally certified as 
42.12 	intermediate care facilities that serve people with developmental disabilities, or any other 
42.13 	facility or service not listed in this subdivision that is licensed or required to be licensed by 
42.14 	the Department of Health for the care of vulnerable adults. "Home care provider" has the 
42.15 	meaning provided in section 144A.43, subdivision 4, and applies when care or services are 
42.16 	delivered in the vulnerable adult's home.
42.17 	(b) The Department of Human Services is the lead investigative agency for facilities or 
42.18 	services licensed or required to be licensed as adult day care, adult foster care, community 
42.19 	residential settings, programs for people with disabilities, EIDBI agencies, family adult day 
42.20 	services, mental health programs, mental health clinics, substance use disorder programs, 
42.21 	the Minnesota Sex Offender Program, or any other facility or service not listed in this 
42.22 	subdivision that is licensed or required to be licensed by the Department of Human Services. 
42.23 	The Department of Human Services is also the lead investigative agency for unlicensed 
42.24 	EIDBI agencies under section 256B.0949.
42.25 	(c) The county social service services agency adult protective services or its the agency's
42.26 	designee or a federally recognized Indian Tribe that entered into a contractual agreement 
42.27 	with the commissioner of human services to operate adult protective services is the lead 
42.28 	investigative agency for all other reports, including but not limited to reports involving 
42.29 	vulnerable adults receiving services from a personal care provider organization under section 
42.30 	256B.0659 or 256B.85.

42.31 	Sec. 39. Minnesota Statutes 2024, section 626.5572, subdivision 17, is amended to read:
42.32 		Subd. 17.Neglect. (a) "Neglect" means neglect by a caregiver or self-neglect.
43.1 	(b) "Caregiver neglect" means the failure or omission by a caregiver to supply a 
43.2 	vulnerable adult with care or services, including but not limited to, food, clothing, shelter, 
43.3 	health care, or supervision which is:
43.4 	(1) reasonable and necessary to obtain or maintain the vulnerable adult's physical or 
43.5 	mental health or safety, considering the physical and mental capacity or dysfunction of the 
43.6 	vulnerable adult; and
43.7 	(2) which is not the result of an accident or therapeutic conduct.
43.8 	(c) "Self-neglect" means neglect by a vulnerable adult of the vulnerable adult's own 
43.9 	food, clothing, shelter, health care, financial management, or other services that are not the 
43.10 	responsibility of a caregiver which a reasonable person would deem essential to obtain or 
43.11 	maintain the vulnerable adult's health, safety, or comfort.
43.12 	(d) For purposes of this section, a vulnerable adult is not neglected for the sole reason 
43.13 	that:
43.14 	(1) the vulnerable adult or a person with authority to make health care decisions for the 
43.15 	vulnerable adult under sections 144.651, 144A.44, chapter 145B, 145C, or 252A, or sections 
43.16 	253B.03 or 524.5-101 to 524.5-502, refuses consent or withdraws consent, consistent with 
43.17 	that authority and within the boundary of reasonable medical practice, to any therapeutic 
43.18 	conduct, including any care, service, or procedure to diagnose, maintain, or treat the physical 
43.19 	or mental condition of the vulnerable adult, or, where permitted under law, to provide 
43.20 	nutrition and hydration parenterally or through intubation; this paragraph does not enlarge 
43.21 	or diminish rights otherwise held under law by:
43.22 	(i) a vulnerable adult or a person acting on behalf of a vulnerable adult, including an 
43.23 	involved family member, to consent to or refuse consent for therapeutic conduct; or
43.24 	(ii) a caregiver to offer or provide or refuse to offer or provide therapeutic conduct; or
43.25 	(2) the vulnerable adult, a person with authority to make health care decisions for the 
43.26 	vulnerable adult, or a caregiver in good faith selects and depends upon spiritual means or 
43.27 	prayer for treatment or care of disease or remedial care of the vulnerable adult in lieu of 
43.28 	medical care, provided that this is consistent with the prior practice or belief of the vulnerable 
43.29 	adult or with the expressed intentions of the vulnerable adult;
43.30 	(3) the vulnerable adult, who is not impaired in judgment or capacity by mental or 
43.31 	emotional dysfunction or undue influence, engages in consensual sexual contact with:
43.32 	(i) a person including a facility staff person when a consensual sexual personal 
43.33 	relationship existed prior to the caregiving relationship; or
44.1 	(ii) a personal care attendant, regardless of whether the consensual sexual personal 
44.2 	relationship existed prior to the caregiving relationship; or
44.3 	(4) an individual makes an error in the provision of therapeutic conduct to a vulnerable 
44.4 	adult which does not result in injury or harm which reasonably requires medical or mental 
44.5 	health care; or
44.6 	(5) an individual makes an error in the provision of therapeutic conduct to a vulnerable 
44.7 	adult that results in injury or harm, which reasonably requires the care of a physician, and:
44.8 	(i) the necessary care is provided in a timely fashion as dictated by the condition of the 
44.9 	vulnerable adult;
44.10 	(ii) if after receiving care, the health status of the vulnerable adult can be reasonably 
44.11 	expected, as determined by the attending physician, to be restored to the vulnerable adult's 
44.12 	preexisting condition;
44.13 	(iii) the error is not part of a pattern of errors by the individual;
44.14 	(iv) if in a facility, the error is immediately reported as required under section 626.557, 
44.15 	and recorded internally in the facility;
44.16 	(v) if in a facility, the facility identifies and takes corrective action and implements 
44.17 	measures designed to reduce the risk of further occurrence of this error and similar errors; 
44.18 	and
44.19 	(vi) if in a facility, the actions required under items (iv) and (v) are sufficiently 
44.20 	documented for review and evaluation by the facility and any applicable licensing, 
44.21 	certification, and ombudsman agency.
44.22 	(e) Nothing in this definition requires a caregiver, if regulated, to provide services in 
44.23 	excess of those required by the caregiver's license, certification, registration, or other 
44.24 	regulation.
44.25 	(f) If the findings of an investigation by a lead investigative agency result in a 
44.26 	determination of substantiated maltreatment for the sole reason that the actions required of 
44.27 	a facility under paragraph (d), clause (5), item (iv), (v), or (vi), were not taken, then the 
44.28 	facility is subject to a correction order. An individual will not be found to have neglected 
44.29 	or maltreated the vulnerable adult based solely on the facility's not having taken the actions 
44.30 	required under paragraph (d), clause (5), item (iv), (v), or (vi). This must not alter the lead 
44.31 	investigative agency's determination of mitigating factors under section 626.557, subdivision 
44.32 	9c, paragraph (f).

45.1 	Sec. 40. REPEALER.
 45.2 	Minnesota Statutes 2024, sections 256B.5012, subdivisions 4, 5, 6, 7, 8, 9, 10, 11, 12, 
45.3 	14, 15, and 16; and 626.557, subdivision 10, are repealed.

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

45.5 	ARTICLE 2
45.6 	BEHAVIORAL HEALTH

45.7 	Section 1. Minnesota Statutes 2025 Supplement, section 245.469, subdivision 1, is amended 
45.8 	to read:
45.9 		Subdivision 1.Availability of emergency services. (a) County boards must provide or 
45.10 	contract for enough emergency services within the county to meet the needs of adults, 
45.11 	children, and families in the county who are experiencing an emotional crisis or mental 
45.12 	illness. Clients must not be charged for services provided. Emergency service providers 
45.13 	must not delay or deny the timely provision of emergency services to a client due to payor 
45.14 	source for services and must meet the qualifications under section 256B.0624, subdivision 
45.15 	4. Emergency services must include assessment, crisis intervention, and appropriate case 
45.16 	disposition. Emergency services must:
45.17 	(1) promote the safety and emotional stability of each client;
45.18 	(2) minimize further deterioration of each client;
45.19 	(3) help each client to obtain ongoing care and treatment;
45.20 	(4) prevent placement in settings that are more intensive, costly, or restrictive than 
45.21 	necessary and appropriate to meet client needs; and
45.22 	(5) provide support, psychoeducation, and referrals to each client's family members, 
45.23 	service providers, and other third parties on behalf of the client in need of emergency 
45.24 	services.
45.25 	(b) If a county provides engagement services under section 253B.041, the county's 
45.26 	emergency service providers must refer clients to engagement services when the client 
45.27 	meets the criteria for engagement services.

45.28 	Sec. 2. Minnesota Statutes 2024, section 245F.02, subdivision 17, is amended to read:
45.29 		Subd. 17.Peer recovery support services. "Peer recovery support services" means 
45.30 	services provided according to section 245F.08, subdivision 3 sections 245G.07, subdivision 
45.31 	2a, paragraph (b), clause (2), and 254B.052.

46.1 	Sec. 3. Minnesota Statutes 2025 Supplement, section 245F.08, subdivision 3, is amended 
46.2 	to read:
46.3 		Subd. 3.Peer recovery support services. Peer recovery support services must meet the 
46.4 	requirements in section 245G.07, subdivision 2a, paragraph (b), clause (2) 254B.052, and 
46.5 	must be provided by a person who is qualified according to the requirements in section 
46.6 	245F.15, subdivision 7 245I.04, subdivisions 18 and 19.

46.7 	Sec. 4. Minnesota Statutes 2024, section 245F.15, subdivision 7, is amended to read:
46.8 		Subd. 7.Recovery peer qualifications. Recovery peers must:
46.9 	(1) meet the qualifications in section 245I.04, subdivision 18; and
46.10 	(2) provide services according to the scope of practice established in section 245I.04, 
46.11 	subdivision 19, under the supervision of an alcohol and drug counselor.

46.12 	Sec. 5. Minnesota Statutes 2024, section 245G.04, is amended by adding a subdivision to 
46.13 	read:
46.14 		Subd. 4.Tobacco educational material. A license holder must provide tobacco and 
46.15 	nicotine educational material to a client on the day of service initiation. The license holder 
46.16 	must use educational material approved by the commissioner that contains information on:
46.17 	(1) risks associated with use of tobacco or nicotine products;
46.18 	(2) types of tobacco or nicotine products, including differentiating between commercial 
46.19 	versus traditional or sacred tobacco;
46.20 	(3) treatment options, including the use of medication for tobacco use disorder; and
46.21 	(4) benefits of receiving treatment for tobacco or nicotine use while attending substance 
46.22 	use disorder treatment for another primary substance.

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

46.24 	Sec. 6. Minnesota Statutes 2025 Supplement, section 245G.11, subdivision 7, is amended 
46.25 	to read:
46.26 		Subd. 7.Treatment coordination provider qualifications. (a) Treatment coordination 
46.27 	must be provided by qualified staff. An individual is qualified to provide treatment 
46.28 	coordination if the individual meets the qualifications of an alcohol and drug counselor 
46.29 	under subdivision 5 or if the individual:
46.30 	(1) is skilled in the process of identifying and assessing a wide range of client needs;
47.1 	(2) is knowledgeable about local community resources and how to use those resources 
47.2 	for the benefit of the client;
47.3 	(3) has completed 15 hours of education or training on substance use disorder, 
47.4 	co-occurring conditions, and care coordination for individuals with substance use disorder 
47.5 	or co-occurring conditions that is consistent with national evidence-based standards;
47.6 	(4) meets one of the following criteria:
47.7 	(i) has a bachelor's degree in one of the behavioral sciences or related fields;
47.8 	(ii) (i) has a high school diploma or equivalent; or
47.9 	(iii) (ii) is a mental health practitioner who meets the qualifications under section 245I.04, 
47.10 	subdivision 4; and
47.11 	(5) either has at least 1,000 hours of supervised experience working with individuals 
47.12 	with substance use disorder or co-occurring conditions or receives treatment supervision at 
47.13 	least once per week until obtaining 1,000 hours of supervised experience working with 
47.14 	individuals with substance use disorder or co-occurring conditions.
47.15 	(b) A treatment coordinator must receive the following levels of supervision from an 
47.16 	alcohol and drug counselor or a mental health professional whose scope of practice includes 
47.17 	substance use disorder treatment and assessments:
47.18 	(1) for a treatment coordinator that has not obtained 1,000 hours of supervised experience 
47.19 	under paragraph (a), clause (5), at least one hour of supervision per week; or
47.20 	(2) for a treatment coordinator that has obtained at least 1,000 hours of supervised 
47.21 	experience under paragraph (a), clause (5), at least one hour of supervision per month.

47.22 	EFFECTIVE DATE. This section is effective August 1, 2026.

47.23 	Sec. 7. Minnesota Statutes 2024, section 245G.11, subdivision 8, is amended to read:
47.24 		Subd. 8.Recovery peer qualifications. A recovery peer must:
47.25 	(1) meet the qualifications in section 245I.04, subdivision 18; and
47.26 	(2) provide services according to the scope of practice established in section 245I.04, 
47.27 	subdivision 19, under the supervision of an alcohol and drug counselor.

48.1 	Sec. 8. Minnesota Statutes 2025 Supplement, section 245I.04, subdivision 17, is amended 
48.2 	to read:
48.3 		Subd. 17.Mental health behavioral aide scope of practice. While under the treatment 
48.4 	supervision of a mental health professional, a mental health behavioral aide may practice 
48.5 	psychosocial skills with a child client according to the child's treatment plan and individual 
48.6 	behavior plan that a mental health professional, clinical trainee, or behavioral health 
48.7 	practitioner has previously taught to the child.

48.8 	Sec. 9. Minnesota Statutes 2024, section 245I.04, is amended by adding a subdivision to 
48.9 	read:
48.10 		Subd. 20.Limitation on affiliation across service lines. (a) A mental health professional, 
48.11 	as defined in subdivision 3, may not simultaneously serve in a clinical, supervisory, or 
48.12 	designated role for more than ten distinct licensed provider organizations or service lines 
48.13 	delivering Medicaid-funded services. A mental health professional may not provide clinical 
48.14 	or administrative supervision to more than 20 direct care or clinical staff across all affiliated 
48.15 	provider organizations and service lines unless an exception is granted by the commissioner 
48.16 	under paragraph (c).
48.17 	(b) The commissioner shall establish criteria and a standardized process for evaluating 
48.18 	exception requests under paragraph (a).
48.19 	(c) Upon written request, the commissioner may grant an exception if the requester 
48.20 	demonstrates that:
48.21 	(1) the mental health professional can effectively meet all clinical, supervisory, and 
48.22 	administrative responsibilities across affiliated programs;
48.23 	(2) the oversight of client care will not be compromised; and
48.24 	(3) the proposed arrangement complies with all applicable supervision, documentation, 
48.25 	and service delivery requirements.
48.26 	(d) In determining whether to grant an exception under paragraph (c), the commissioner 
48.27 	shall consider:
48.28 	(1) the geographic distribution of services;
48.29 	(2) the complexity and acuity of client needs;
48.30 	(3) the mental health professional's other responsibilities, including direct service 
48.31 	provision; and
49.1 	(4) whether adequate supervision can be maintained in compliance with program 
49.2 	standards.
49.3 	(e) The commissioner shall rescind approval of the exception granted under paragraph 
49.4 	(c) if the requester fails to comply with applicable program standards or with the terms of 
49.5 	the exception.
49.6 	(f) The commissioner may adopt rules as necessary to implement and enforce this 
49.7 	subdivision.
49.8 	(g) A mental health professional determined to be in violation of this subdivision may 
49.9 	be subject to corrective action, licensing sanctions, or administrative penalties in accordance 
49.10 	with chapter 245A and other applicable law.

49.11 	Sec. 10. Minnesota Statutes 2024, section 245I.08, subdivision 4, is amended to read:
49.12 		Subd. 4.Progress notes. A license holder must use a progress note to document each 
49.13 	occurrence of a mental health service that a staff person provides to a client. A progress 
49.14 	note must include the following:
49.15 	(1) the type of service;
49.16 	(2) the date of service;
49.17 	(3) the start and stop time of the service unless the license holder is licensed as a 
49.18 	residential program;
49.19 	(4) the location of the service;
49.20 	(5) the scope of the service, including: (i) the targeted goal and objective; (ii) the 
49.21 	intervention that the staff person provided to the client and the methods that the staff person 
49.22 	used; (iii) the client's response to the intervention; and (iv) the staff person's plan to take 
49.23 	future actions, including changes in treatment that the staff person will implement if the 
49.24 	intervention was ineffective;
49.25 	(6) the signature and credentials of the staff person who provided the service to the 
49.26 	client;
49.27 	(7) the dated signature and credentials of the treatment supervisor;
49.28 	(7) (8) the mental health provider travel documentation required by section 256B.0625, 
49.29 	if applicable; and
49.30 	(8) (9) significant observations by the staff person, if applicable, including: (i) the client's 
49.31 	current risk factors; (ii) emergency interventions by staff persons; (iii) consultations with 
50.1 	or referrals to other professionals, family, or significant others; and (iv) changes in the 
50.2 	client's mental or physical symptoms.

50.3 	Sec. 11. Minnesota Statutes 2024, section 245I.10, subdivision 6, is amended to read:
50.4 		Subd. 6.Standard diagnostic assessment; required elements. (a) Only a mental health 
50.5 	professional or a clinical trainee may complete a standard diagnostic assessment of a client. 
50.6 	A standard diagnostic assessment of a client must include a face-to-face interview with a 
50.7 	client and a written evaluation of the client. The assessor must complete a client's standard 
50.8 	diagnostic assessment within the client's cultural context. An alcohol and drug counselor 
50.9 	may gather and document the information in paragraphs (b) and (c) when completing a 
50.10 	comprehensive assessment according to section 245G.05.
50.11 	(b) When completing a standard diagnostic assessment of a client, the assessor must 
50.12 	gather and document information about the client's current life situation, including the 
50.13 	following information:
50.14 	(1) the client's age;
50.15 	(2) the client's current living situation, including the client's housing status and household 
50.16 	members;
50.17 	(3) the status of the client's basic needs;
50.18 	(4) the client's education level and employment status;
50.19 	(5) the client's current medications;
50.20 	(6) any immediate risks to the client's health and safety, including withdrawal symptoms, 
50.21 	medical conditions, and behavioral and emotional symptoms;
50.22 	(7) the client's perceptions of the client's condition;
50.23 	(8) the client's description of the client's symptoms, including the reason for the client's 
50.24 	referral;
50.25 	(9) the client's history of mental health and substance use disorder treatment, including 
50.26 	treatment for tobacco or nicotine use;
50.27 	(10) cultural influences on the client; and
50.28 	(11) substance use history, if applicable, including:
50.29 	(i) amounts and types of substances, including tobacco and nicotine products; frequency 
50.30 	and duration,; route of administration,; periods of abstinence,; and circumstances of relapse; 
50.31 	and
51.1 	(ii) the impact to functioning when under the influence of substances, including legal 
51.2 	interventions.
51.3 	(c) If the assessor cannot obtain the information that this paragraph requires without 
51.4 	retraumatizing the client or harming the client's willingness to engage in treatment, the 
51.5 	assessor must identify which topics will require further assessment during the course of the 
51.6 	client's treatment. The assessor must gather and document information related to the following 
51.7 	topics:
51.8 	(1) the client's relationship with the client's family and other significant personal 
51.9 	relationships, including the client's evaluation of the quality of each relationship;
51.10 	(2) the client's strengths and resources, including the extent and quality of the client's 
51.11 	social networks;
51.12 	(3) important developmental incidents in the client's life;
51.13 	(4) maltreatment, trauma, potential brain injuries, and abuse that the client has suffered;
51.14 	(5) the client's history of or exposure to alcohol and drug usage and treatment; and
51.15 	(6) the client's health history and the client's family health history, including the client's 
51.16 	physical, chemical, and mental health history.
51.17 	(d) When completing a standard diagnostic assessment of a client, an assessor must use 
51.18 	a recognized diagnostic framework.
51.19 	(1) When completing a standard diagnostic assessment of a client who is five years of 
51.20 	age or younger, the assessor must use the current edition of the DC: 0-5 Diagnostic 
51.21 	Classification of Mental Health and Development Disorders of Infancy and Early Childhood 
51.22 	published by Zero to Three.
51.23 	(2) When completing a standard diagnostic assessment of a client who is six years of 
51.24 	age or older, the assessor must use the current edition of the Diagnostic and Statistical 
51.25 	Manual of Mental Disorders published by the American Psychiatric Association.
51.26 	(3) When completing a standard diagnostic assessment of a client who is 18 years of 
51.27 	age or older, an assessor must use either (i) the CAGE-AID Questionnaire or (ii) the criteria 
51.28 	in the most recent edition of the Diagnostic and Statistical Manual of Mental Disorders 
51.29 	published by the American Psychiatric Association to screen and assess the client for a 
51.30 	substance use disorder, including tobacco use disorder.
51.31 	(e) When completing a standard diagnostic assessment of a client, the assessor must 
51.32 	include and document the following components of the assessment:
52.1 	(1) the client's mental status examination;
52.2 	(2) the client's baseline measurements; symptoms; behavior; skills; abilities; resources; 
52.3 	vulnerabilities; safety needs, including client information that supports the assessor's findings 
52.4 	after applying a recognized diagnostic framework from paragraph (d); and any differential 
52.5 	diagnosis of the client; and
52.6 	(3) an explanation of: (i) how the assessor diagnosed the client using the information 
52.7 	from the client's interview, assessment, psychological testing, and collateral information 
52.8 	about the client; (ii) the client's needs; (iii) the client's risk factors; (iv) the client's strengths; 
52.9 	and (v) the client's responsivity factors.
52.10 	(f) When completing a standard diagnostic assessment of a client, the assessor must 
52.11 	consult the client and the client's family about which services that the client and the family 
52.12 	prefer to treat the client. The assessor must make referrals for the client as to services required 
52.13 	by law.
52.14 	(g) Information from other providers and prior assessments may be used to complete 
52.15 	the diagnostic assessment if the source of the information is documented in the diagnostic 
52.16 	assessment.

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

52.18 	Sec. 12. Minnesota Statutes 2025 Supplement, section 254A.03, subdivision 3, is amended 
52.19 	to read:
52.20 		Subd. 3.Rules for substance use disorder care. (a) An eligible vendor of comprehensive 
52.21 	assessments under section 254B.0501 may determine the appropriate level of substance use 
52.22 	disorder treatment for a recipient of public assistance. The process for determining an 
52.23 	individual's financial eligibility for the behavioral health fund or determining an individual's 
52.24 	enrollment in or eligibility for a publicly subsidized health plan is not affected by the 
52.25 	individual's choice to access a comprehensive assessment for placement.
52.26 	(b) The commissioner shall develop and implement a utilization review process for 
52.27 	publicly funded treatment placements to monitor and review the clinical appropriateness 
52.28 	and timeliness of all publicly funded placements in treatment.
52.29 	(c) (b) If a screen result is positive for alcohol or substance misuse, a brief screening for 
52.30 	alcohol or substance use disorder that is provided to a recipient of public assistance within 
52.31 	a primary care clinic, hospital, or other medical setting or school setting establishes medical 
52.32 	necessity and approval for an initial set of substance use disorder services identified in 
52.33 	section 254B.0505. The initial set of services approved for a recipient whose screen result 
53.1 	is positive may include any combination of up to four hours of individual or group substance 
53.2 	use disorder treatment, two hours of substance use disorder treatment coordination, or two 
53.3 	hours of substance use disorder peer support services provided by a qualified individual 
53.4 	according to chapter 245G. A recipient must obtain an assessment pursuant to paragraph 
53.5 	(a) to be approved for additional treatment services. A comprehensive assessment pursuant 
53.6 	to section 245G.05 is not required to receive the initial set of services allowed under this 
53.7 	subdivision. A positive screen result establishes eligibility for the initial set of services 
53.8 	allowed under this subdivision.
53.9 	(d) (c) An individual may choose to obtain a comprehensive assessment as provided in 
53.10 	section 245G.05. Individuals obtaining a comprehensive assessment may access any enrolled 
53.11 	provider that is licensed to provide the level of service authorized pursuant to section 
53.12 	254A.19, subdivision 3. If the individual is enrolled in a prepaid health plan, the individual 
53.13 	must comply with any provider network requirements or limitations.

53.14 	Sec. 13. Minnesota Statutes 2025 Supplement, section 254B.0505, subdivision 8, is 
53.15 	amended to read:
53.16 		Subd. 8.Peer recovery support services Utilization review requirements. (a) Eligible 
53.17 	vendors of peer recovery support services in subdivision 1, clauses (1), (4) to (8), and (10), 
53.18 	must:
53.19 	(1) submit to a review by the commissioner of up to ten percent of all medical assistance 
53.20 	and behavioral health fund claims to determine the medical necessity of peer recovery 
53.21 	support services for entities billing for peer recovery support services individually and not 
53.22 	receiving a daily rate; and.
53.23 	(2)(b) Entities billing for peer recovery support services individually and not receiving 
53.24 	a daily rate must limit an individual client to 14 hours per week for peer recovery support 
53.25 	services from an individual provider of peer recovery support services.

53.26 	Sec. 14. Minnesota Statutes 2024, section 254B.052, subdivision 1, is amended to read:
53.27 		Subdivision 1.Peer recovery support services; service requirements. (a) Peer recovery 
53.28 	support services are face-to-face interactions between a recovery peer and a client, on a 
53.29 	one-on-one basis, in which specific goals identified in an individual recovery plan, treatment 
53.30 	plan, or stabilization plan are discussed and addressed. Peer recovery support services are 
53.31 	provided to promote a client's recovery goals, self-sufficiency, self-advocacy, and 
53.32 	development of natural supports and to support maintenance of a client's recovery.
54.1 	(b) Peer recovery support services must be provided according to (1) an individual 
54.2 	recovery plan if provided by a recovery community organization or county, a treatment plan 
54.3 	if provided in either a substance use disorder treatment program under chapter 245G, or a 
54.4 	Tribally licensed substance use disorder treatment program, or (2) a stabilization plan if 
54.5 	provided by a withdrawal management program under chapter 245F.
54.6 	(c) A client receiving peer recovery support services must participate in the services 
54.7 	voluntarily. Any program that incorporates peer recovery support services must provide 
54.8 	written notice to the client that peer recovery support services will be provided.
54.9 	(d) Peer recovery support services may not be provided to a client residing with or 
54.10 	employed by a recovery peer from whom they receive the client receives services.

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

54.12 	Sec. 15. Minnesota Statutes 2025 Supplement, section 254B.052, subdivision 6, is amended 
54.13 	to read:
54.14 		Subd. 6.Monetary recovery. Peer recovery support Services subject to section 
54.15 	254B.0505, subdivision 8, that are not provided in accordance with this section are subject 
54.16 	to monetary recovery under section 256B.064 as money improperly paid.

54.17 	Sec. 16. Minnesota Statutes 2024, section 256B.0624, subdivision 6b, is amended to read:
54.18 		Subd. 6b.Crisis intervention services. (a) If the crisis assessment determines mobile 
54.19 	crisis intervention services are needed, the crisis intervention services must be provided 
54.20 	promptly. As opportunity presents during the intervention, at least two members of the 
54.21 	mobile crisis intervention team must confer directly or by telephone about the crisis 
54.22 	assessment, crisis treatment plan, and actions taken and needed. At least one of the team 
54.23 	members must be providing face-to-face crisis intervention services. If providing crisis 
54.24 	intervention services, a clinical trainee or mental health practitioner must seek treatment 
54.25 	supervision as required in subdivision 9.
54.26 	(b) If a provider delivers crisis intervention services while the recipient is absent, the 
54.27 	provider must document the reason for delivering services while the recipient is absent.
54.28 	(c) The mobile crisis intervention team must develop a crisis treatment plan according 
54.29 	to subdivision 11.
54.30 	(d) The mobile crisis intervention team must document which crisis treatment plan goals 
54.31 	and objectives have been met and when no further crisis intervention services are required.
55.1 	(e) If the recipient's mental health crisis is stabilized, but the recipient needs a referral 
55.2 	to other services, the team must provide referrals to these services. If the recipient has a 
55.3 	case manager, planning for other services must be coordinated with the case manager. If 
55.4 	the recipient is unable to follow up on the referral, the team must link the recipient to the 
55.5 	service and follow up to ensure the recipient is receiving the service.
55.6 	(f) If the recipient's mental health crisis is stabilized and the recipient does not have an 
55.7 	advance directive, the case manager or crisis team shall offer to work with the recipient to 
55.8 	develop one.

55.9 	EFFECTIVE DATE. This section is effective upon federal approval.

55.10 	Sec. 17. Minnesota Statutes 2024, section 256B.0624, subdivision 7, is amended to read:
55.11 		Subd. 7.Crisis stabilization services. (a) Crisis stabilization services must be provided 
55.12 	by qualified staff of a crisis stabilization services provider entity and must meet the following 
55.13 	standards:
55.14 	(1) a crisis treatment plan must be developed that meets the criteria in subdivision 11;
55.15 	(2) staff must be qualified as defined in subdivision 8;
55.16 	(3) crisis stabilization services must be delivered according to the crisis treatment plan 
55.17 	and include face-to-face contact with the recipient by qualified staff for further assessment, 
55.18 	help with referrals, updating of the crisis treatment plan, skills training, and collaboration 
55.19 	with other service providers in the community; and
55.20 	(4) if a provider delivers crisis stabilization services while the recipient is absent, the 
55.21 	provider must document the reason for delivering services while the recipient is absent.; 
55.22 	and
55.23 	(5) if the recipient is an adult and the recipient's mental health crisis is stabilized and 
55.24 	the recipient does not have a health care directive as defined by section 145C.01, subdivision 
55.25 	5a, or psychiatric declaration as defined by section 253B.03, subdivision 6d, the case manager 
55.26 	or crisis team must offer to work with the recipient to develop a directive or declaration.
55.27 	(b) If crisis stabilization services are provided in a supervised, licensed residential setting 
55.28 	that serves no more than four adult residents, and one or more individuals are present at the 
55.29 	setting to receive residential crisis stabilization, the residential staff must include, for at 
55.30 	least eight hours per day, at least one mental health professional, clinical trainee, certified 
55.31 	rehabilitation specialist, or mental health practitioner. The commissioner shall establish a 
55.32 	statewide per diem rate for crisis stabilization services provided under this paragraph to 
56.1 	medical assistance enrollees. The rate for a provider shall not exceed the rate charged by 
56.2 	that provider for the same service to other payers. Payment shall not be made to more than 
56.3 	one entity for each individual for services provided under this paragraph on a given day. 
56.4 	The commissioner shall set rates prospectively for the annual rate period. The commissioner 
56.5 	shall require providers to submit annual cost reports on a uniform cost reporting form and 
56.6 	shall use submitted cost reports to inform the rate-setting process. The commissioner shall 
56.7 	recalculate the statewide per diem every year.

56.8 	EFFECTIVE DATE. This section is effective upon federal approval.

56.9 	Sec. 18. Minnesota Statutes 2024, section 256B.0625, subdivision 47, is amended to read:
56.10 		Subd. 47.Treatment foster care services. Effective July 1, 2011, and subject to federal 
56.11 	approval, Medical assistance covers treatment foster care children's intensive behavioral 
56.12 	health services according to section 256B.0946.

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

56.14 	Sec. 19. Minnesota Statutes 2024, section 256B.0759, subdivision 3, is amended to read:
56.15 		Subd. 3.Provider standards. (a) The commissioner must establish requirements for 
56.16 	participating providers that are consistent with the federal requirements of the demonstration 
56.17 	project. The following programs licensed by the Department of Human Services that receive 
56.18 	payment for substance use disorder treatment services under section 256B.0625 must certify 
56.19 	that the program meets the applicable American Society of Addiction Medicine (ASAM) 
56.20 	levels of care according to section 254B.19:
56.21 	(1) nonresidential substance use disorder treatment programs and residential treatment 
56.22 	programs licensed under chapter 245G as licensed substance use disorder treatment facilities;
56.23 	(2) withdrawal management programs licensed under chapter 245F; and
56.24 	(3) out-of-state residential substance use disorder treatment programs.
56.25 	Programs that do not meet the requirements of this paragraph are ineligible for payment for 
56.26 	services provided under section 256B.0625.
56.27 	(b) A participating residential provider must obtain applicable licensure under chapter 
56.28 	245F or 245G or other applicable standards for the services provided and must:
56.29 	(1) deliver services in accordance with standards published by the commissioner pursuant 
56.30 	to paragraph (d);
57.1 	(2) maintain formal patient referral arrangements with providers delivering step-up or 
57.2 	step-down levels of care in accordance with ASAM standards; and
57.3 	(3) offer substance use disorder treatment services with medications for opioid use 
57.4 	disorder on site or facilitate access to substance use disorder treatment services with 
57.5 	medications for opioid use disorder off site.
57.6 	(c) A participating outpatient provider must obtain applicable licensure under chapter 
57.7 	245G or other applicable standards for the services provided and must:
57.8 	(1) deliver services in accordance with standards published by the commissioner pursuant 
57.9 	to paragraph (d); and
57.10 	(2) maintain formal patient referral arrangements with providers delivering step-up or 
57.11 	step-down levels of care in accordance with ASAM standards.
57.12 	(d) If the provider standards under chapter 245G or other applicable standards conflict 
57.13 	or are duplicative, the commissioner may grant variances to the standards if the variances 
57.14 	do not conflict with federal requirements. The commissioner must publish service 
57.15 	components, service standards, and staffing requirements for participating providers that 
57.16 	are consistent with ASAM standards and federal requirements by October 1, 2020.
57.17 	(b) Programs licensed by the Department of Human Services as residential treatment 
57.18 	programs according to section 245G.21 that (1) receive payment under this chapter, (2) are 
57.19 	licensed as a hospital under sections 144.50 to 144.581, and (3) provide only ASAM level 
57.20 	3.7 medically monitored inpatient level of care are not required to enroll as demonstration 
57.21 	project providers. Programs meeting the criteria in this paragraph must submit evidence of 
57.22 	providing the required level of care to the commissioner to be exempt from enrolling in the 
57.23 	demonstration.
57.24 	(c) Tribally licensed programs that otherwise meet the requirements of subdivision 3 
57.25 	may elect to participate in the demonstration project. The Department of Human Services 
57.26 	must consult with Tribal Nations to discuss participation in the substance use disorder 
57.27 	demonstration project.
57.28 	(d) Programs subject to this section must:
57.29 	(1) deliver services in accordance with section 254B.19; and
57.30 	(2) offer substance use disorder treatment services with medications for opioid use 
57.31 	disorder on site or facilitate timely access to medications for opioid use disorder off site.

58.1 	Sec. 20. Minnesota Statutes 2025 Supplement, section 256B.0759, subdivision 4, is 
58.2 	amended to read:
58.3 		Subd. 4.Provider payment rates. (a) Payment rates for participating Providers must 
58.4 	be increased for services provided to medical assistance enrollees. To receive a rate increase, 
58.5 	participating providers must meet demonstration project requirements and provide evidence 
58.6 	of formal referral arrangements with providers delivering step-up or step-down levels of 
58.7 	care. Providers that have enrolled in the demonstration project but have not met the provider 
58.8 	standards under subdivision 3 as of July 1, 2022, are not eligible for a rate increase under 
58.9 	this subdivision until the date that the provider meets the provider standards in subdivision 
58.10 	3. Services provided from July 1, 2022, to the date that the provider meets the provider 
58.11 	standards under subdivision 3 shall be reimbursed at rates according to section 254B.0505, 
58.12 	subdivision 1. Rate increases paid under this subdivision to a provider for services provided 
58.13 	between July 1, 2021, and July 1, 2022, are not subject to recoupment when the provider 
58.14 	is taking meaningful steps to meet demonstration project requirements that are not otherwise 
58.15 	required by law, and the provider provides documentation to the commissioner, upon request, 
58.16 	of the steps being taken.
58.17 	(b) The commissioner may temporarily suspend payments to the provider according to 
58.18 	section 256B.04, subdivision 21, paragraph (d), if the provider does not meet the requirements 
58.19 	in paragraph (a). Payments withheld from the provider must be made once the commissioner 
58.20 	determines that the requirements in paragraph (a) are met.
58.21 	(c) For outpatient individual and group substance use disorder services under section 
58.22 	254B.0505, subdivision 1, clause (1), and adolescent treatment programs that are licensed 
58.23 	as outpatient treatment programs according to sections 245G.01 to 245G.18, provided on 
58.24 	or after January 1, 2021, payment rates must be increased by 20 percent over the rates in 
58.25 	effect on December 31, 2020.
58.26 	(d) (b) Effective January 1, 2021, and contingent on annual federal approval, managed 
58.27 	care plans and county-based purchasing plans must reimburse providers of the substance 
58.28 	use disorder services meeting the criteria described in paragraph (a) who requirements of 
58.29 	section 254B.19 that are employed by or under contract with the plan an amount that is at 
58.30 	least equal to the fee-for-service base rate payment for the substance use disorder services 
58.31 	described in paragraph (c) (a). The commissioner must monitor the effect of this requirement 
58.32 	on the rate of access to substance use disorder services and residential substance use disorder 
58.33 	rates. Capitation rates paid to managed care organizations and county-based purchasing 
58.34 	plans must reflect the impact of this requirement. This paragraph expires if federal approval 
58.35 	is not received at any time as required under this paragraph.
59.1 	(e) (c) Effective July 1, 2021, contracts between managed care plans and county-based 
59.2 	purchasing plans and providers to whom paragraph (d) (b) applies must allow recovery of 
59.3 	payments from those providers if, for any contract year, federal approval for the provisions 
59.4 	of paragraph (d) (b) is not received, and capitation rates are adjusted as a result. Payment 
59.5 	recoveries must not exceed the amount equal to any decrease in rates that results from this 
59.6 	provision.
59.7 	(f) (d) For substance use disorder services with medications for opioid use disorder under 
59.8 	section 254B.0505, subdivision 1, clause (7), provided on or after January 1, 2021, payment 
59.9 	rates must be increased by 20 percent over the rates in effect on December 31, 2020. Upon 
59.10 	implementation of new rates according to section 254B.121, the 20 percent increase will 
59.11 	no longer apply.

59.12 	Sec. 21. Minnesota Statutes 2025 Supplement, section 256B.0943, subdivision 1, is 
59.13 	amended to read:
59.14 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
59.15 	the meanings given them.
59.16 	(b) "Children's therapeutic services and supports" means the flexible package of mental 
59.17 	health services for children who require varying therapeutic and rehabilitative levels of 
59.18 	intervention to treat a diagnosed mental illness, as defined in section 245.462, subdivision 
59.19 	20, or 245.4871, subdivision 15. The services are time-limited interventions that are delivered 
59.20 	using various treatment modalities and combinations of services designed to reach treatment 
59.21 	outcomes identified in the individual treatment plan.
59.22 	(c) "Clinical trainee" means a staff person who is qualified according to section 245I.04, 
59.23 	subdivision 6.
59.24 	(d) "Crisis planning" has the meaning given in section 245.4871, subdivision 9a.
59.25 	(e) "Culturally competent provider" means a provider who understands and can utilize 
59.26 	to a client's benefit the client's culture when providing services to the client. A provider 
59.27 	may be culturally competent because the provider is of the same cultural or ethnic group 
59.28 	as the client or the provider has developed the knowledge and skills through training and 
59.29 	experience to provide services to culturally diverse clients.
59.30 	(f) "Day treatment program" for children means a site-based structured mental health 
59.31 	program consisting of psychotherapy for three or more individuals and individual or group 
59.32 	skills training provided by a team, under the treatment supervision of a mental health 
59.33 	professional.
60.1 	(g) "Direct service time" means the time that a mental health professional, clinical trainee, 
60.2 	mental health practitioner, or mental health behavioral aide spends face-to-face with a client 
60.3 	and the client's family or providing covered services through telehealth as defined under 
60.4 	section 256B.0625, subdivision 3b. Direct service time includes time in which the provider 
60.5 	obtains a client's history, develops a client's treatment plan, records individual treatment 
60.6 	outcomes, or provides service components of children's therapeutic services and supports. 
60.7 	Direct service time does not include time doing work before and after providing direct 
60.8 	services, including scheduling or maintaining clinical records.
60.9 	(h) "Direction of mental health behavioral aide" means the activities of a mental health 
60.10 	professional, clinical trainee, or mental health practitioner in guiding the mental health 
60.11 	behavioral aide in providing services to a client. The direction of a mental health behavioral 
60.12 	aide must be based on the client's individual treatment plan and meet the requirements in 
60.13 	subdivision 6, paragraph (b), clause (7).
60.14 	(i) "Individual treatment plan" means the plan described in section 245I.10, subdivisions 
60.15 	7 and 8.
60.16 	(j) "Mental health behavioral aide services" means medically necessary one-on-one 
60.17 	activities performed by a mental health behavioral aide qualified according to section 
60.18 	245I.04, subdivision 16, to assist a child retain or generalize psychosocial skills as previously 
60.19 	trained by a mental health professional, clinical trainee, or mental health practitioner and 
60.20 	as described in the child's individual treatment plan and individual behavior plan. Activities 
60.21 	involve working directly with the child or child's family as provided in subdivision 9, 
60.22 	paragraph (b), clause (4).
60.23 	(k) "Mental health certified family peer specialist" means a staff person who is qualified 
60.24 	according to section 245I.04, subdivision 12.
60.25 	(l) "Mental health practitioner" means a staff person who is qualified according to section 
60.26 	245I.04, subdivision 4.
60.27 	(m) "Mental health professional" means a staff person who is qualified according to 
60.28 	section 245I.04, subdivision 2.
60.29 	(n) "Mental health service plan development" includes:
60.30 	(1) development and revision of a child's individual treatment plan; and
60.31 	(2) administering and reporting standardized outcome measurements approved by the 
60.32 	commissioner, as periodically needed to evaluate the effectiveness of treatment.
61.1 	(o) "Mental illness" has the meaning given in section 245.462, subdivision 20, paragraph 
61.2 	(a), for persons at least 18 years of age but under 21 years of age, and has the meaning given 
61.3 	in section 245.4871, subdivision 15, for children under 18 years of age.
61.4 	(p) "Psychotherapy" means the treatment described in section 256B.0671, subdivision 
61.5 	11.
61.6 	(q) "Rehabilitative services" or "psychiatric rehabilitation services" means interventions 
61.7 	to: (1) restore a child or adolescent to an age-appropriate developmental trajectory that had 
61.8 	been disrupted by a psychiatric illness; or (2) enable the child to self-monitor, compensate 
61.9 	for, cope with, counteract, or replace psychosocial skills deficits or maladaptive skills 
61.10 	acquired over the course of a psychiatric illness. Psychiatric rehabilitation services for 
61.11 	children combine coordinated psychotherapy to address internal psychological, emotional, 
61.12 	and intellectual processing deficits, and skills training to restore personal and social 
61.13 	functioning. Psychiatric rehabilitation services establish a progressive series of goals with 
61.14 	each achievement building upon a prior achievement.
61.15 	(r) "Skills training" means individual, family, or group training, delivered by or under 
61.16 	the supervision of a mental health professional, designed to facilitate the acquisition of 
61.17 	psychosocial skills that are medically necessary to rehabilitate the child to an age-appropriate 
61.18 	developmental trajectory heretofore disrupted by a psychiatric illness or to enable the child 
61.19 	to self-monitor, compensate for, cope with, counteract, or replace skills deficits or 
61.20 	maladaptive skills acquired over the course of a psychiatric illness. Skills training is subject 
61.21 	to the service delivery requirements under subdivision 9, paragraph (b), clause (2).
61.22 	(s) "Standard diagnostic assessment" means the assessment described in section 245I.10, 
61.23 	subdivision 6.
61.24 	(t) "Treatment supervision" means the supervision described in section 245I.06.

61.25 	Sec. 22. Minnesota Statutes 2024, section 256B.0943, subdivision 6, is amended to read:
61.26 		Subd. 6.Provider entity clinical infrastructure requirements. (a) To be an eligible 
61.27 	provider entity under this section, a provider entity must have a clinical infrastructure that 
61.28 	utilizes diagnostic assessment, individual treatment plans, service delivery, and individual 
61.29 	treatment plan review that are culturally competent, child-centered, and family-driven to 
61.30 	achieve maximum benefit for the client. The provider entity must review, and update as 
61.31 	necessary, the clinical policies and procedures every three two years, must distribute the 
61.32 	policies and procedures to staff initially and upon each subsequent update, and must train 
61.33 	staff accordingly.
62.1 	(b) The clinical infrastructure written policies and procedures must include policies and 
62.2 	procedures for meeting the requirements in this subdivision:
62.3 	(1) providing or obtaining a client's standard diagnostic assessment, including a standard 
62.4 	diagnostic assessment. When required components of the standard diagnostic assessment 
62.5 	are not provided in an outside or independent assessment or cannot be attained immediately, 
62.6 	the provider entity must determine the missing information within 30 days and amend the 
62.7 	child's standard diagnostic assessment or incorporate the information into the child's 
62.8 	individual treatment plan;
62.9 	(2) developing an individual treatment plan;
62.10 	(3) providing treatment supervision plans for staff according to section 245I.06. Treatment 
62.11 	supervision does not include the authority to make or terminate court-ordered placements 
62.12 	of the child. A treatment supervisor must be available for urgent consultation as required 
62.13 	by the individual client's needs or the situation;
62.14 	(4) requiring a mental health professional to determine the level of supervision for a 
62.15 	behavioral health aide and to document and sign the supervision determination in the 
62.16 	behavioral health aide's supervision plan;
62.17 	(5) ensuring the immediate accessibility of a mental health professional, clinical trainee, 
62.18 	or mental health practitioner to the behavioral aide during service delivery;
62.19 	(6) providing service delivery that implements the individual treatment plan and meets 
62.20 	the requirements under subdivision 9; and
62.21 	(7) individual treatment plan review. The review must determine the extent to which 
62.22 	the services have met each of the goals and objectives in the treatment plan. The review 
62.23 	must assess the client's progress and ensure that services and treatment goals continue to 
62.24 	be necessary and appropriate to the client and the client's family or foster family.

62.25 	Sec. 23. Minnesota Statutes 2024, section 256B.0946, subdivision 4, is amended to read:
62.26 		Subd. 4.Service delivery payment requirements. (a) To be eligible for payment under 
62.27 	this section, a provider must develop and practice written policies and procedures for 
62.28 	children's intensive behavioral health services, consistent with subdivision 1, paragraph (b), 
62.29 	and comply with the following requirements in paragraphs (b) to (n).
62.30 	(b) Each previous and current mental health, school, and physical health treatment 
62.31 	provider must be contacted to request documentation of treatment and assessments that the 
63.1 	eligible client has received. This information must be reviewed and incorporated into the 
63.2 	standard diagnostic assessment and team consultation and treatment planning review process.
63.3 	(c) Each client receiving treatment must be assessed for a trauma history, and the client's 
63.4 	treatment plan must document how the results of the assessment will be incorporated into 
63.5 	treatment.
63.6 	(d) The level of care assessment as defined in section 245I.02, subdivision 19, and 
63.7 	functional assessment as defined in section 245I.02, subdivision 17, must be updated at 
63.8 	least every 180 days or prior to discharge from the service, whichever comes first.
63.9 	(e) Each client receiving treatment services must have an individual treatment plan that 
63.10 	is reviewed, evaluated, and approved every 180 days using the team consultation and 
63.11 	treatment planning process.
63.12 	(f) Clinical care consultation must be provided in accordance with the client's individual 
63.13 	treatment plan.
63.14 	(g) Each client must have a crisis plan within ten days of initiating services and must 
63.15 	have access to clinical phone support 24 hours per day, seven days per week, during the 
63.16 	course of treatment. The crisis plan must demonstrate coordination with the local or regional 
63.17 	mobile crisis intervention team.
63.18 	(h) Services must be delivered and documented at least three days per week, equaling 
63.19 	at least six hours of treatment per week. If the mental health professional, client, and family 
63.20 	agree, service units may be temporarily reduced for a period of no more than 60 days in 
63.21 	order to meet the needs of the client and family, or as part of transition or on a discharge 
63.22 	plan to another service or level of care. The reasons for service reduction must be identified,
63.23 	and documented, and included in the treatment plan or case file. Billing and payment are 
63.24 	prohibited for days on which no services are delivered and documented.
63.25 	(i) Location of service delivery must be in the client's home, day care setting, school, or 
63.26 	other community-based setting that is specified on the client's individualized treatment plan.
63.27 	(j) Treatment must be developmentally and culturally appropriate for the client.
63.28 	(k) Services must be delivered in continual collaboration and consultation with the 
63.29 	client's medical providers and, in particular, with prescribers of psychotropic medications, 
63.30 	including those prescribed on an off-label basis. Members of the service team must be aware 
63.31 	of the medication regimen and potential side effects.
64.1 	(l) Parents, siblings, foster parents, legal guardians, and members of the child's 
64.2 	permanency plan must be involved in treatment and service delivery unless otherwise noted 
64.3 	in the treatment plan.
64.4 	(m) Transition planning for the child must be conducted starting with the first treatment 
64.5 	plan and must be addressed throughout treatment to support the child's permanency plan 
64.6 	and postdischarge mental health service needs.
64.7 	(n) In order for a provider to receive the daily per-client encounter rate, at least one of 
64.8 	the services listed in subdivision 1, paragraph (b), clauses (1) to (3), must be provided. The 
64.9 	services listed in subdivision 1, paragraph (b), clauses (4) and (5), may be included as part 
64.10 	of the daily per-client encounter rate.

64.11 	Sec. 24. Minnesota Statutes 2025 Supplement, section 256B.0947, subdivision 3a, is 
64.12 	amended to read:
64.13 		Subd. 3a.Required service components. (a) Intensive nonresidential rehabilitative 
64.14 	mental health services, supports, and ancillary activities that are covered by a single daily 
64.15 	rate per client must include the following, as needed by the individual client:
64.16 	(1) individual, family, and group psychotherapy;
64.17 	(2) individual, family, and group skills training, as defined in section 256B.0943, 
64.18 	subdivision 1, paragraph (r);
64.19 	(3) crisis planning as defined in section 245.4871, subdivision 9a;
64.20 	(4) medication management provided by a physician, an advanced practice registered 
64.21 	nurse with certification in psychiatric and mental health care, or a physician assistant qualified 
64.22 	provider;
64.23 	(5) mental health case management as provided in section 256B.0625, subdivision 20;
64.24 	(6) medication education services as defined in this section;
64.25 	(7) care coordination by a client-specific lead worker assigned by and responsible to the 
64.26 	treatment team;
64.27 	(8) psychoeducation of and consultation and coordination with the client's biological, 
64.28 	adoptive, or foster family and, in the case of a youth living independently, the client's 
64.29 	immediate nonfamilial support network;
65.1 	(9) clinical consultation to a client's employer or school or to other service agencies or 
65.2 	to the courts to assist in managing the mental illness or co-occurring disorder and to develop 
65.3 	client support systems;
65.4 	(10) coordination with, or performance of, crisis intervention and stabilization services 
65.5 	as defined in section 256B.0624;
65.6 	(11) transition services;
65.7 	(12) co-occurring substance use disorder treatment as defined in section 245I.02, 
65.8 	subdivision 11; and
65.9 	(13) housing access support that assists clients to find, obtain, retain, and move to safe 
65.10 	and adequate housing. Housing access support does not provide monetary assistance for 
65.11 	rent, damage deposits, or application fees.
65.12 	(b) The provider shall ensure and document the following by means of performing the 
65.13 	required function or by contracting with a qualified person or entity: client access to crisis 
65.14 	intervention services, as defined in section 256B.0624, and available 24 hours per day and 
65.15 	seven days per week.

65.16 	EFFECTIVE DATE. This section is effective July 1, 2027, or upon federal approval, 
65.17 	whichever is later.

65.18 	Sec. 25. Minnesota Statutes 2024, section 256B.0947, subdivision 5, is amended to read:
65.19 		Subd. 5.Standards for intensive nonresidential rehabilitative providers. (a) Services 
65.20 	must meet the standards in this section and chapter 245I as required in section 245I.011, 
65.21 	subdivision 5.
65.22 	(b) The treatment team must have specialized training in providing services to the specific 
65.23 	age group of youth that the team serves. An individual treatment team must serve youth 
65.24 	who are: (1) at least eight years of age or older and under 16 years of age, or (2) at least 14 
65.25 	years of age or older and under 21 years of age.
65.26 	(c) The treatment team for intensive nonresidential rehabilitative mental health services 
65.27 	comprises both permanently employed core team members and client-specific team members 
65.28 	as follows:
65.29 	(1) Based on professional qualifications and client needs, clinically qualified core team 
65.30 	members are assigned on a rotating basis as the client's lead worker to coordinate a client's 
65.31 	care. The core team must comprise at least four full-time equivalent direct care staff and 
65.32 	must minimally include:
66.1 	(i) a mental health professional who serves as team leader to provide administrative 
66.2 	direction and treatment supervision to the team;
66.3 	(ii) an advanced-practice registered nurse with certification in psychiatric or mental 
66.4 	health care or a board-certified child and adolescent psychiatrist, either of which must be 
66.5 	credentialed to prescribe medications a psychiatric care provider credentialed to prescribe 
66.6 	medications who is either an advanced practice registered nurse with advanced education 
66.7 	and training in psychiatric and mental health care or a board-certified psychiatrist. The 
66.8 	psychiatric care provider must have demonstrated clinical experience and qualifications for 
66.9 	working with children and adolescents with serious mental illness and co-occurring mental 
66.10 	illness and substance use disorder;
66.11 	(iii) a mental health certified peer specialist who is qualified according to section 245I.04, 
66.12 	subdivision 10, and is also a former children's mental health consumer; and
66.13 	(iv) a co-occurring disorder specialist who meets the requirements under section 
66.14 	256B.0622, subdivision 7a, paragraph (a), clause (4), who will provide or facilitate the 
66.15 	provision of co-occurring disorder treatment to clients.
66.16 	(2) The core team may also include any of the following:
66.17 	(i) additional mental health professionals;
66.18 	(ii) a vocational specialist;
66.19 	(iii) an educational specialist with knowledge and experience working with youth 
66.20 	regarding special education requirements and goals, special education plans, and coordination 
66.21 	of educational activities with health care activities;
66.22 	(iv) a child and adolescent psychiatrist who may be retained on a consultant basis;
66.23 	(v) a clinical trainee qualified according to section 245I.04, subdivision 6;
66.24 	(vi) a mental health practitioner qualified according to section 245I.04, subdivision 4;
66.25 	(vii) a case management service provider, as defined in section 245.4871, subdivision 
66.26 	4;
66.27 	(viii) a housing access specialist; and
66.28 	(ix) a family peer specialist as defined in subdivision 2, paragraph (j).
66.29 	(3) A treatment team may include, in addition to those in clause (1) or (2), ad hoc 
66.30 	members not employed by the team who consult on a specific client and who must accept 
66.31 	overall clinical direction from the treatment team for the duration of the client's placement 
67.1 	with the treatment team and must be paid by the provider agency at the rate for a typical 
67.2 	session by that provider with that client or at a rate negotiated with the client-specific 
67.3 	member. Client-specific treatment team members may include:
67.4 	(i) the mental health professional treating the client prior to placement with the treatment 
67.5 	team;
67.6 	(ii) the client's current substance use counselor, if applicable;
67.7 	(iii) a lead member of the client's individualized education program team or school-based 
67.8 	mental health provider, if applicable;
67.9 	(iv) a representative from the client's health care home or primary care clinic, as needed 
67.10 	to ensure integration of medical and behavioral health care;
67.11 	(v) the client's probation officer or other juvenile justice representative, if applicable; 
67.12 	and
67.13 	(vi) the client's current vocational or employment counselor, if applicable.
67.14 	(d) The treatment supervisor shall be an active member of the treatment team and shall 
67.15 	function as a practicing clinician at least on a part-time basis. The treatment team shall meet 
67.16 	with the treatment supervisor at least weekly to discuss recipients' progress and make rapid 
67.17 	adjustments to meet recipients' needs. The team meeting must include client-specific case 
67.18 	reviews and general treatment discussions among team members. Client-specific case 
67.19 	reviews and planning must be documented in the individual client's treatment record.
67.20 	(e) The staffing ratio must not exceed ten clients to one full-time equivalent treatment 
67.21 	team position.
67.22 	(f) The treatment team shall serve no more than 80 clients at any one time. Should local 
67.23 	demand exceed the team's capacity, an additional team must be established rather than 
67.24 	exceed this limit.
67.25 	(g) Nonclinical staff shall have prompt access in person or by telephone to a mental 
67.26 	health practitioner, clinical trainee, or mental health professional. The provider shall have 
67.27 	the capacity to promptly and appropriately respond to emergent needs and make any 
67.28 	necessary staffing adjustments to ensure the health and safety of clients.
67.29 	(h) The intensive nonresidential rehabilitative mental health services provider shall 
67.30 	participate in evaluation of the assertive community treatment for youth (Youth ACT) model 
67.31 	as conducted by the commissioner, including the collection and reporting of data and the 
67.32 	reporting of performance measures as specified by contract with the commissioner.
68.1 	(i) A regional treatment team may serve multiple counties.

68.2 	EFFECTIVE DATE. This section is effective July 1, 2027, or upon federal approval, 
68.3 	whichever is later.

68.4 	Sec. 26. Minnesota Statutes 2025 Supplement, section 256L.03, subdivision 5, is amended 
68.5 	to read:
68.6 		Subd. 5.Cost-sharing. (a) Co-payments, coinsurance, and deductibles do not apply to 
68.7 	children under the age of 21 and to American Indians as defined in Code of Federal 
68.8 	Regulations, title 42, section 600.5.
68.9 	(b) The commissioner must adjust co-payments, coinsurance, and deductibles for covered 
68.10 	services in a manner sufficient to maintain the actuarial value of the benefit to 94 percent. 
68.11 	The cost-sharing changes described in this paragraph do not apply to eligible recipients or 
68.12 	services exempt from cost-sharing under state law. The cost-sharing changes described in 
68.13 	this paragraph shall not be implemented prior to January 1, 2016.
68.14 	(c) The cost-sharing changes authorized under paragraph (b) must satisfy the requirements 
68.15 	for cost-sharing under the Basic Health Program as set forth in Code of Federal Regulations, 
68.16 	title 42, sections 600.510 and 600.520.
68.17 	(d) Cost-sharing for prescription drugs and related medical supplies to treat chronic 
68.18 	disease must comply with the requirements of section 62Q.481.
68.19 	(e) Co-payments, coinsurance, and deductibles do not apply to additional diagnostic 
68.20 	services or testing that a health care provider determines an enrollee requires after a 
68.21 	mammogram, as specified under section 62A.30, subdivision 5.
68.22 	(f) Cost-sharing must not apply to drugs used for tobacco and nicotine cessation or to 
68.23 	tobacco and nicotine cessation services covered under section 256B.0625, subdivision 68.
68.24 	(g) Co-payments, coinsurance, and deductibles do not apply to pre-exposure prophylaxis 
68.25 	(PrEP) and postexposure prophylaxis (PEP) medications when used for the prevention or 
68.26 	treatment of the human immunodeficiency virus (HIV).
68.27 	(h) Co-payments, coinsurance, and deductibles do not apply to mobile crisis intervention, 
68.28 	crisis stabilization provided in a community setting, or crisis assessment as defined in section 
68.29 	256B.0624, subdivision 2.

68.30 	Sec. 27. REPEALER.
 68.31 	Minnesota Statutes 2024, section 256B.0759, subdivisions 2 and 5, are repealed.

69.1 	ARTICLE 3
69.2 	HEALTH CARE

69.3 	Section 1. Minnesota Statutes 2024, section 142B.01, subdivision 8, is amended to read:
69.4 		Subd. 8.Controlling individual. (a) "Controlling individual" means an owner of a 
69.5 	program or service provider licensed under this chapter and the following individuals, if 
69.6 	applicable:
69.7 	(1) each officer of the organization, including the chief executive officer and chief 
69.8 	financial officer;
69.9 	(2) the individual designated as the authorized agent under section 142B.10, subdivision 
69.10 	1, paragraph (b);
69.11 	(3) the individual designated as the compliance officer under section 256B.04, subdivision 
69.12 	21, paragraph (g) 256B.044, subdivision 7, paragraph (b);
69.13 	(4) each managerial official whose responsibilities include the direction of the 
69.14 	management or policies of a program;
69.15 	(5) the individual designated as the primary provider of care for a special family child 
69.16 	care program under section 142B.41, subdivision 4, paragraph (d); and
69.17 	(6) the president and treasurer of the board of directors of a nonprofit corporation.
69.18 	(b) Controlling individual does not include:
69.19 	(1) a bank, savings bank, trust company, savings association, credit union, industrial 
69.20 	loan and thrift company, investment banking firm, or insurance company unless the entity 
69.21 	operates a program directly or through a subsidiary;
69.22 	(2) an individual who is a state or federal official, or state or federal employee, or a 
69.23 	member or employee of the governing body of a political subdivision of the state or federal 
69.24 	government that operates one or more programs, unless the individual is also an officer, 
69.25 	owner, or managerial official of the program; receives remuneration from the program; or 
69.26 	owns any of the beneficial interests not excluded in this subdivision;
69.27 	(3) an individual who owns less than five percent of the outstanding common shares of 
69.28 	a corporation:
69.29 	(i) whose securities are exempt under section 80A.45, clause (6); or
69.30 	(ii) whose transactions are exempt under section 80A.46, clause (2);
70.1 	(4) an individual who is a member of an organization exempt from taxation under section 
70.2 	290.05, unless the individual is also an officer, owner, or managerial official of the program 
70.3 	or owns any of the beneficial interests not excluded in this subdivision. This clause does 
70.4 	not exclude from the definition of controlling individual an organization that is exempt from 
70.5 	taxation; or
70.6 	(5) an employee stock ownership plan trust, or a participant or board member of an 
70.7 	employee stock ownership plan, unless the participant or board member is a controlling 
70.8 	individual according to paragraph (a).
70.9 	(c) For purposes of this subdivision, "managerial official" means an individual who has 
70.10 	the decision-making authority related to the operation of the program, and the responsibility 
70.11 	for the ongoing management of or direction of the policies, services, or employees of the 
70.12 	program. A site director who has no ownership interest in the program is not considered to 
70.13 	be a managerial official for purposes of this definition.

70.14 	Sec. 2. Minnesota Statutes 2024, section 245A.02, subdivision 5a, is amended to read:
70.15 		Subd. 5a.Controlling individual. (a) "Controlling individual" means an owner of a 
70.16 	program or service provider licensed under this chapter and the following individuals, if 
70.17 	applicable:
70.18 	(1) each officer of the organization, including the chief executive officer and chief 
70.19 	financial officer;
70.20 	(2) the individual designated as the authorized agent under section 245A.04, subdivision 
70.21 	1, paragraph (b);
70.22 	(3) the individual designated as the compliance officer under section 256B.04, subdivision 
70.23 	21, paragraph (g) 256B.044, subdivision 7, paragraph (b);
70.24 	(4) each managerial official whose responsibilities include the direction of the 
70.25 	management or policies of a program; and
70.26 	(5) the president and treasurer of the board of directors of a nonprofit corporation.
70.27 	(b) Controlling individual does not include:
70.28 	(1) a bank, savings bank, trust company, savings association, credit union, industrial 
70.29 	loan and thrift company, investment banking firm, or insurance company unless the entity 
70.30 	operates a program directly or through a subsidiary;
70.31 	(2) an individual who is a state or federal official, or state or federal employee, or a 
70.32 	member or employee of the governing body of a political subdivision of the state or federal 
71.1 	government that operates one or more programs, unless the individual is also an officer, 
71.2 	owner, or managerial official of the program, receives remuneration from the program, or 
71.3 	owns any of the beneficial interests not excluded in this subdivision;
71.4 	(3) an individual who owns less than five percent of the outstanding common shares of 
71.5 	a corporation:
71.6 	(i) whose securities are exempt under section 80A.45, clause (6); or
71.7 	(ii) whose transactions are exempt under section 80A.46, clause (2);
71.8 	(4) an individual who is a member of an organization exempt from taxation under section 
71.9 	290.05, unless the individual is also an officer, owner, or managerial official of the program 
71.10 	or owns any of the beneficial interests not excluded in this subdivision. This clause does 
71.11 	not exclude from the definition of controlling individual an organization that is exempt from 
71.12 	taxation; or
71.13 	(5) an employee stock ownership plan trust, or a participant or board member of an 
71.14 	employee stock ownership plan, unless the participant or board member is a controlling 
71.15 	individual according to paragraph (a).
71.16 	(c) For purposes of this subdivision, "managerial official" means an individual who has 
71.17 	the decision-making authority related to the operation of the program, and the responsibility 
71.18 	for the ongoing management of or direction of the policies, services, or employees of the 
71.19 	program. A site director who has no ownership interest in the program is not considered to 
71.20 	be a managerial official for purposes of this definition.

71.21 	Sec. 3. Minnesota Statutes 2024, section 245D.081, subdivision 3, is amended to read:
71.22 		Subd. 3.Program management and oversight. (a) The license holder must designate 
71.23 	a managerial staff person or persons to provide program management and oversight of the 
71.24 	services provided by the license holder. The designated manager is responsible for the 
71.25 	following:
71.26 	(1) maintaining a current understanding of the licensing requirements sufficient to ensure 
71.27 	compliance throughout the program as identified in section 245A.04, subdivision 1, paragraph 
71.28 	(e), and when applicable, as identified in section 256B.04, subdivision 21, paragraph (g)
71.29 	256B.044, subdivision 7;
71.30 	(2) ensuring the duties of the designated coordinator are fulfilled according to the 
71.31 	requirements in subdivision 2;
72.1 	(3) ensuring the program implements corrective action identified as necessary by the 
72.2 	program following review of incident and emergency reports according to the requirements 
72.3 	in section 245D.11, subdivision 2, clause (7). An internal review of incident reports of 
72.4 	alleged or suspected maltreatment must be conducted according to the requirements in 
72.5 	section 245A.65, subdivision 1, paragraph (b);
72.6 	(4) evaluation of satisfaction of persons served by the program, the person's legal 
72.7 	representative, if any, and the case manager, with the service delivery and progress toward 
72.8 	accomplishing outcomes identified in sections 245D.07 and 245D.071, and ensuring and 
72.9 	protecting each person's rights as identified in section 245D.04;
72.10 	(5) ensuring staff competency requirements are met according to the requirements in 
72.11 	section 245D.09, subdivision 3, and ensuring staff orientation and training is provided 
72.12 	according to the requirements in section 245D.09, subdivisions 4, 4a, and 5;
72.13 	(6) ensuring corrective action is taken when ordered by the commissioner and that the 
72.14 	terms and conditions of the license and any variances are met; and
72.15 	(7) evaluating the information identified in clauses (1) to (6) to develop, document, and 
72.16 	implement ongoing program improvements.
72.17 	(b) The designated manager must be competent to perform the duties as required and 
72.18 	must minimally meet the education and training requirements identified in subdivision 2, 
72.19 	paragraph (b), and have a minimum of three years of supervisory level experience in a 
72.20 	program that provides care or education to vulnerable adults or children.

72.21 	Sec. 4. Minnesota Statutes 2025 Supplement, section 256B.04, subdivision 21, is amended 
72.22 	to read:
72.23 		Subd. 21.Provider enrollment. (a) The commissioner shall enroll providers and conduct 
72.24 	screening activities as required by sections 256B.044 to 256B.0444 and Code of Federal 
72.25 	Regulations, title 42, section 455, subpart E.
72.26 	A provider must enroll each provider-controlled location where direct services are 
72.27 	provided. The commissioner may deny a provider's incomplete application if a provider 
72.28 	fails to respond to the commissioner's request for additional information within 60 days of 
72.29 	the request. The commissioner must conduct a background study under chapter 245C, 
72.30 	including a review of databases in section 245C.08, subdivision 1, paragraph (a), clauses 
72.31 	(1) to (5), for a provider described in this paragraph. The background study requirement 
72.32 	may be satisfied if the commissioner conducted a fingerprint-based background study on 
73.1 	the provider that includes a review of databases in section 245C.08, subdivision 1, paragraph 
73.2 	(a), clauses (1) to (5).
73.3 	(b) The commissioner shall revalidate:
73.4 	(1) each provider under this subdivision at least once every five years;
73.5 	(2) each personal care assistance agency, CFSS provider-agency, and CFSS financial 
73.6 	management services provider under this subdivision at least once every three years;
73.7 	(3) each EIDBI agency under this subdivision at least once every three years; and
73.8 	(4) at the commissioner's discretion, any medical-assistance-only provider type the 
73.9 	commissioner deems "high-risk" under this subdivision.
73.10 	(c) The commissioner shall conduct revalidation as follows:
73.11 	(1) provide 30-day notice of the revalidation due date including instructions for 
73.12 	revalidation and a list of materials the provider must submit;
73.13 	(2) if a provider fails to submit all required materials by the due date, notify the provider 
73.14 	of the deficiency within 30 days after the due date and allow the provider an additional 30 
73.15 	days from the notification date to comply; and
73.16 	(3) if a provider fails to remedy a deficiency within the 30-day time period, give 60-day 
73.17 	notice of termination and immediately suspend the provider's ability to bill. The provider 
73.18 	does not have the right to appeal suspension of ability to bill.
73.19 	(d) If a provider fails to comply with any individual provider requirement or condition 
73.20 	of participation, the commissioner may suspend the provider's ability to bill until the provider 
73.21 	comes into compliance. The commissioner's decision to suspend the provider is not subject 
73.22 	to an administrative appeal.
73.23 	(e) Correspondence and notifications, including notifications of termination and other 
73.24 	actions, may be delivered electronically to a provider's MN-ITS mailbox. This paragraph 
73.25 	does not apply to correspondences and notifications related to background studies.
73.26 	(f) If the commissioner or the Centers for Medicare and Medicaid Services determines 
73.27 	that a provider is designated "high-risk," the commissioner may withhold payment from 
73.28 	providers within that category upon initial enrollment for a 90-day period. The withholding 
73.29 	for each provider must begin on the date of the first submission of a claim.
73.30 	(g) An enrolled provider that is also licensed by the commissioner under chapter 245A, 
73.31 	is licensed as a home care provider by the Department of Health under chapter 144A, or is 
73.32 	licensed as an assisted living facility under chapter 144G and has a home and 
74.1 	community-based services designation on the home care license under section 144A.484, 
74.2 	must designate an individual as the entity's compliance officer. The compliance officer 
74.3 	must:
74.4 	(1) develop policies and procedures to assure adherence to medical assistance laws and 
74.5 	regulations and to prevent inappropriate claims submissions;
74.6 	(2) train the employees of the provider entity, and any agents or subcontractors of the 
74.7 	provider entity including billers, on the policies and procedures under clause (1);
74.8 	(3) respond to allegations of improper conduct related to the provision or billing of 
74.9 	medical assistance services, and implement action to remediate any resulting problems;
74.10 	(4) use evaluation techniques to monitor compliance with medical assistance laws and 
74.11 	regulations;
74.12 	(5) promptly report to the commissioner any identified violations of medical assistance 
74.13 	laws or regulations; and
74.14 	(6) within 60 days of discovery by the provider of a medical assistance reimbursement 
74.15 	overpayment, report the overpayment to the commissioner and make arrangements with 
74.16 	the commissioner for the commissioner's recovery of the overpayment.
74.17 	The commissioner may require, as a condition of enrollment in medical assistance, that a 
74.18 	provider within a particular industry sector or category establish a compliance program that 
74.19 	contains the core elements established by the Centers for Medicare and Medicaid Services.
74.20 	(h) The commissioner may revoke the enrollment of an ordering or rendering provider 
74.21 	for a period of not more than one year, if the provider fails to maintain and, upon request 
74.22 	from the commissioner, provide access to documentation relating to written orders or requests 
74.23 	for payment for durable medical equipment, certifications for home health services, or 
74.24 	referrals for other items or services written or ordered by such provider, when the 
74.25 	commissioner has identified a pattern of a lack of documentation. A pattern means a failure 
74.26 	to maintain documentation or provide access to documentation on more than one occasion. 
74.27 	Nothing in this paragraph limits the authority of the commissioner to sanction a provider 
74.28 	under the provisions of section 256B.064.
74.29 	(i) The commissioner shall terminate or deny the enrollment of any individual or entity 
74.30 	if the individual or entity has been terminated from participation in Medicare or under the 
74.31 	Medicaid program or Children's Health Insurance Program of any other state. The 
74.32 	commissioner may exempt a rehabilitation agency from termination or denial that would 
74.33 	otherwise be required under this paragraph, if the agency:
75.1 	(1) is unable to retain Medicare certification and enrollment solely due to a lack of billing 
75.2 	to the Medicare program;
75.3 	(2) meets all other applicable Medicare certification requirements based on an on-site 
75.4 	review completed by the commissioner of health; and
75.5 	(3) serves primarily a pediatric population.
75.6 	(j) As a condition of enrollment in medical assistance, the commissioner shall require 
75.7 	that a provider designated "moderate" or "high-risk" by the Centers for Medicare and 
75.8 	Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid 
75.9 	Services, its agents, or its designated contractors and the state agency, its agents, or its 
75.10 	designated contractors to conduct unannounced on-site inspections of any provider location. 
75.11 	The commissioner shall publish in the Minnesota Health Care Program Provider Manual a 
75.12 	list of provider types designated "limited," "moderate," or "high-risk," based on the criteria 
75.13 	and standards used to designate Medicare providers in Code of Federal Regulations, title 
75.14 	42, section 424.518. The list and criteria are not subject to the requirements of chapter 14. 
75.15 	The commissioner's designations are not subject to administrative appeal.
75.16 	(k) As a condition of enrollment in medical assistance, the commissioner shall require 
75.17 	that a high-risk provider, or a person with a direct or indirect ownership interest in the 
75.18 	provider of five percent or higher, consent to criminal background checks, including 
75.19 	fingerprinting, when required to do so under state law or by a determination by the 
75.20 	commissioner or the Centers for Medicare and Medicaid Services that a provider is designated 
75.21 	high-risk for fraud, waste, or abuse.
75.22 	(l)(1) Upon initial enrollment, reenrollment, and notification of revalidation, all durable 
75.23 	medical equipment, prosthetics, orthotics, and supplies (DMEPOS) medical suppliers 
75.24 	meeting the durable medical equipment provider and supplier definition in clause (3), 
75.25 	operating in Minnesota and receiving Medicaid funds must purchase a surety bond that is 
75.26 	annually renewed and designates the Minnesota Department of Human Services as the 
75.27 	obligee, and must be submitted in a form approved by the commissioner. For purposes of 
75.28 	this clause, the following medical suppliers are not required to obtain a surety bond: a 
75.29 	federally qualified health center, a home health agency, the Indian Health Service, a 
75.30 	pharmacy, and a rural health clinic.
75.31 	(2) At the time of initial enrollment or reenrollment, durable medical equipment providers 
75.32 	and suppliers defined in clause (3) must purchase a surety bond of $50,000. If a revalidating 
75.33 	provider's Medicaid revenue in the previous calendar year is up to and including $300,000, 
75.34 	the provider agency must purchase a surety bond of $50,000. If a revalidating provider's 
76.1 	Medicaid revenue in the previous calendar year is over $300,000, the provider agency must 
76.2 	purchase a surety bond of $100,000. The surety bond must allow for recovery of costs and 
76.3 	fees in pursuing a claim on the bond. Any action to obtain monetary recovery or sanctions 
76.4 	from a surety bond must occur within six years from the date the debt is affirmed by a final 
76.5 	agency decision. An agency decision is final when the right to appeal the debt has been 
76.6 	exhausted or the time to appeal has expired under section 256B.064.
76.7 	(3) "Durable medical equipment provider or supplier" means a medical supplier that can 
76.8 	purchase medical equipment or supplies for sale or rental to the general public and is able 
76.9 	to perform or arrange for necessary repairs to and maintenance of equipment offered for 
76.10 	sale or rental.
76.11 	(m) The Department of Human Services may require a provider to purchase a surety 
76.12 	bond as a condition of initial enrollment, reenrollment, reinstatement, or continued enrollment 
76.13 	if: (1) the provider fails to demonstrate financial viability, (2) the department determines 
76.14 	there is significant evidence of or potential for fraud and abuse by the provider, or (3) the 
76.15 	provider or category of providers is designated high-risk pursuant to paragraph (f) and as 
76.16 	per Code of Federal Regulations, title 42, section 455.450. The surety bond must be in an 
76.17 	amount of $100,000 or ten percent of the provider's payments from Medicaid during the 
76.18 	immediately preceding 12 months, whichever is greater. The surety bond must name the 
76.19 	Department of Human Services as an obligee and must allow for recovery of costs and fees 
76.20 	in pursuing a claim on the bond. This paragraph does not apply if the provider currently 
76.21 	maintains a surety bond under the requirements in section 256B.051, 256B.0659, 256B.0701, 
76.22 	or 256B.85.

76.23 	Sec. 5. [256B.044] PROVIDER ENROLLMENT.
76.24 		Subdivision 1.Designating categorical risk levels. (a) The commissioner must designate 
76.25 	provider types as "limited-risk," "moderate-risk," or "high-risk," based on the criteria and 
76.26 	standards used to designate Medicare providers in Code of Federal Regulations, title 42, 
76.27 	section 424.518. The commissioner must publish a list of provider types and designated 
76.28 	categorical risk levels in the Minnesota Health Care Program Provider Manual.
76.29 	(b) The list and criteria are not subject to the requirements of chapter 14, and section 
76.30 	14.386 does not apply.
76.31 	(c) The commissioner's designations are not subject to administrative appeal.
76.32 		Subd. 2.Service location enrollment. A provider must enroll each provider-controlled 
76.33 	location where direct services are provided.
77.1 		Subd. 3.Incomplete provider enrollment applications. The commissioner may deny 
77.2 	a provider's incomplete enrollment application if a provider fails to respond to the 
77.3 	commissioner's request for additional information within 60 days of the request.
77.4 		Subd. 4.Required background studies. (a) The commissioner must conduct a 
77.5 	background study under chapter 245C, including a review of databases in section 245C.08, 
77.6 	subdivision 1, paragraph (a), clauses (1) to (5), for a provider applying for enrollment under 
77.7 	section 256B.04, subdivision 21. The background study requirement may be satisfied if the 
77.8 	commissioner conducted a fingerprint-based background study on the provider that included 
77.9 	a review of databases in section 245C.08, subdivision 1, paragraph (a), clauses (1) to (5).
77.10 	(b) As a condition of enrollment in medical assistance, the commissioner must require 
77.11 	that a high-risk provider, or a person with a direct or indirect ownership interest in the 
77.12 	provider of five percent or higher, consent to criminal background checks, including 
77.13 	fingerprinting, when required to do so under state law or by a determination by the 
77.14 	commissioner or the Centers for Medicare and Medicaid Services (CMS) that a provider is 
77.15 	designated high-risk.
77.16 		Subd. 5.Surety bonds. (a) The commissioner may require a provider to purchase a 
77.17 	surety bond as a condition of initial enrollment, revalidation, reenrollment, reinstatement, 
77.18 	or continued enrollment if:
77.19 	(1) the provider fails to demonstrate financial viability;
77.20 	(2) the commissioner determines there is significant evidence of or potential for fraud 
77.21 	and abuse by the provider; or
77.22 	(3) the provider or category of providers is designated high-risk pursuant to subdivision 
77.23 	1 and Code of Federal Regulations, title 42, section 455.450.
77.24 	(b) The surety bond must be in an amount of $100,000 or ten percent of the provider's 
77.25 	payments from Medicaid during the immediately preceding 12 months, whichever is greater. 
77.26 	The surety bond must name the Department of Human Services as an obligee and must 
77.27 	allow for recovery of costs and fees in pursuing a claim on the bond.
77.28 	(c) This subdivision does not apply if the provider currently maintains a surety bond 
77.29 	under the requirements in section 256B.051, 256B.0659, 256B.0701, or 256B.85.
77.30 		Subd. 6.Required permission to conduct on-site inspection. As a condition of 
77.31 	enrollment in medical assistance, the commissioner shall require that a provider designated 
77.32 	moderate-risk or high-risk by CMS or the commissioner permit CMS, CMS's agents, or 
77.33 	CMS's designated contractors and the state agency, the state agency's agents, or the state 
78.1 	agency's designated contractors to conduct unannounced on-site inspections of any provider 
78.2 	location.
78.3 		Subd. 7.Compliance programs. (a) The commissioner may require, as a condition of 
78.4 	enrollment in medical assistance, that a provider within a particular industry sector or 
78.5 	category establish a compliance program that contains the core elements established by 
78.6 	CMS.
78.7 	(b) If an enrolled provider is required by the commissioner or by law to designate an 
78.8 	individual as the provider's compliance officer, the compliance officer must:
78.9 	(1) develop policies and procedures to ensure adherence to medical assistance laws and 
78.10 	regulations and to prevent inappropriate claims submissions;
78.11 	(2) train the employees of the provider entity and any agents or subcontractors of the 
78.12 	provider entity, including billers, on the policies and procedures under clause (1);
78.13 	(3) respond to allegations of improper conduct related to the provision or billing of 
78.14 	medical assistance services and implement action to remediate any resulting problems;
78.15 	(4) use evaluation techniques to monitor compliance with medical assistance laws and 
78.16 	regulations;
78.17 	(5) promptly report to the commissioner any identified violations of medical assistance 
78.18 	laws or regulations; and
78.19 	(6) within 60 days of discovery by the provider of a medical assistance reimbursement 
78.20 	overpayment, report the overpayment to the commissioner and make arrangements with 
78.21 	the commissioner for the commissioner's recovery of the overpayment.
78.22 		Subd. 8.Correspondence and notification. The commissioner may deliver 
78.23 	correspondence and notifications, including notifications of termination and other actions, 
78.24 	electronically to a provider's MN-ITS mailbox. This subdivision does not apply to 
78.25 	correspondence and notifications related to background studies.

78.26 	Sec. 6. [256B.0441] PROVIDER REVALIDATION.
78.27 		Subdivision 1.Provider revalidation schedule. The commissioner shall revalidate:
78.28 	(1) each provider at least once every five years;
78.29 	(2) each personal care assistance agency, community first services and supports (CFSS) 
78.30 	agency-provider, and CFSS financial management services provider at least once every 
78.31 	three years;
79.1 	(3) each early intensive developmental and behavioral intervention agency at least once 
79.2 	every three years; and
79.3 	(4) at the commissioner's discretion, any medical-assistance-only provider type the 
79.4 	commissioner deems high-risk under section 256B.044, subdivision 1.
79.5 		Subd. 2.Revalidation procedures. The commissioner shall conduct revalidation as 
79.6 	follows:
79.7 	(1) provide 30 days' notice of the revalidation due date including instructions for 
79.8 	revalidation and a list of materials the provider must submit;
79.9 	(2) if a provider fails to submit all required materials by the due date, notify the provider 
79.10 	of the deficiency within 30 days after the due date and allow the provider an additional 30 
79.11 	days from the notification date to comply; and
79.12 	(3) if a provider fails to remedy a deficiency within the 30-day time period, give 60 days' 
79.13 	notice of termination and immediately suspend the provider's ability to bill. The provider 
79.14 	does not have the right to appeal suspension of ability to bill.

79.15 	Sec. 7. [256B.0442] PROVIDER ENROLLMENT SUSPENSIONS AND 
79.16 	TERMINATIONS.
79.17 		Subdivision 1.Commissioner's general authority to suspend individual provider's 
79.18 	enrollment. (a) If a provider fails to comply with any individual provider requirement or 
79.19 	condition of participation, the commissioner may suspend the provider's ability to bill until 
79.20 	the provider comes into compliance.
79.21 	(b) The commissioner's decision to suspend the provider is not subject to an administrative 
79.22 	appeal.
79.23 		Subd. 2.Commissioner's authority to revoke enrollment of certain providers for 
79.24 	lack of documentation. (a) The commissioner may revoke the enrollment of an ordering 
79.25 	or rendering provider for a period of not more than one year, if the provider fails to maintain 
79.26 	and, upon request from the commissioner, provide access to documentation relating to 
79.27 	written orders or requests for payment for durable medical equipment, certifications for 
79.28 	home health services, or referrals for other items or services written or ordered by the 
79.29 	provider, when the commissioner has identified a pattern of a lack of documentation. A 
79.30 	pattern means a failure to maintain documentation or provide access to documentation on 
79.31 	more than one occasion.
80.1 	(b) Nothing in this subdivision limits the authority of the commissioner to sanction a 
80.2 	provider under section 256B.064.
80.3 		Subd. 3.Commissioner's duty to terminate provider enrollment. (a) Except as 
80.4 	provided in paragraph (b), the commissioner must terminate or deny the enrollment of any 
80.5 	individual or entity if the individual or entity has been terminated from participation in 
80.6 	Medicare or under the Medicaid program or Children's Health Insurance Program of any 
80.7 	other state.
80.8 	(b) The commissioner may exempt a rehabilitation agency from termination or denial 
80.9 	that would otherwise be required under paragraph (a), if the agency:
80.10 	(1) is unable to retain Medicare certification and enrollment solely due to a lack of billing 
80.11 	to the Medicare program;
80.12 	(2) meets all other applicable Medicare certification requirements based on an on-site 
80.13 	review completed by the commissioner of health; and
80.14 	(3) serves primarily a pediatric population.
80.15 		Subd. 4.Commissioner's authority to terminate provider enrollment for lack of 
80.16 	submitted claims. The commissioner may terminate the enrollment of an individual or 
80.17 	entity provider if the individual or entity provider has not submitted any claims in the 
80.18 	previous 12 consecutive calendar months.

80.19 	Sec. 8. [256B.0443] PROVIDER PAYMENT WITHHOLDS.
80.20 	(a) If the commissioner or the Centers for Medicare and Medicaid Services designates 
80.21 	a provider type as high-risk under section 256B.044, subdivision 1, the commissioner may 
80.22 	withhold payment from providers within that category upon initial enrollment for a 90-day 
80.23 	period.
80.24 	(b) The withholding for each provider must begin on the date of the first submission of 
80.25 	a claim.

80.26 	Sec. 9. [256B.0444] ADDITIONAL PROVIDER ENROLLMENT REQUIREMENTS 
80.27 	FOR SPECIFIC PROVIDER TYPES.
80.28 		Subdivision 1.Durable medical equipment provider or supplier. (a) For purposes of 
80.29 	this subdivision, "durable medical equipment provider or supplier" means a medical supplier 
80.30 	that can purchase medical equipment or supplies for sale or rent to the general public and 
81.1 	is able to perform or arrange for necessary repairs to and maintenance of equipment offered 
81.2 	for sale or rent.
81.3 	(b) Upon initial enrollment, reenrollment, and notification of revalidation, all durable 
81.4 	medical equipment, prosthetics, orthotics, and supplies medical suppliers meeting the durable 
81.5 	medical equipment provider or supplier definition in paragraph (a), operating in Minnesota, 
81.6 	and receiving Medicaid money must purchase a surety bond that is annually renewed, 
81.7 	designates the Department of Human Services as the obligee, and is submitted in a form 
81.8 	approved by the commissioner. For purposes of this paragraph, the following medical 
81.9 	suppliers are not required to obtain a surety bond: a federally qualified health center, a home 
81.10 	health agency, the Indian Health Service, a pharmacy, and a rural health clinic.
81.11 	(c) At the time of initial enrollment or reenrollment, durable medical equipment providers 
81.12 	or suppliers defined in paragraph (a) must purchase a surety bond of $50,000. If a revalidating 
81.13 	provider's Medicaid revenue in the previous calendar year is up to and including $300,000, 
81.14 	the provider agency must purchase a surety bond of $50,000. If a revalidating provider's 
81.15 	Medicaid revenue in the previous calendar year is over $300,000, the provider agency must 
81.16 	purchase a surety bond of $100,000. The surety bond must allow for recovery of costs and 
81.17 	fees in pursuing a claim on the bond. Any action to obtain monetary recovery or sanctions 
81.18 	from a surety bond must occur within six years from the date the debt is affirmed by a final 
81.19 	agency decision. An agency decision is final when the right to appeal the debt has been 
81.20 	exhausted or the time to appeal has expired under section 256B.064.
81.21 		Subd. 2.Providers licensed by the commissioner of human services. An enrolled 
81.22 	provider that is also licensed by the commissioner under chapter 245A must designate an 
81.23 	individual as the licensee's compliance officer under section 256B.044, subdivision 7, 
81.24 	paragraph (b).
81.25 		Subd. 3.Providers licensed by the commissioner of health. An enrolled provider that 
81.26 	is also licensed by the commissioner of health as a home care provider under chapter 144A 
81.27 	with a home and community-based services designation under section 144A.484 on the 
81.28 	home care license, or as an assisted living facility under chapter 144G, must designate an 
81.29 	individual as the licensee's compliance officer under section 256B.044, subdivision 7, 
81.30 	paragraph (b).

81.31 	Sec. 10. Minnesota Statutes 2024, section 256B.057, subdivision 9, is amended to read:
81.32 		Subd. 9.Employed persons with disabilities. (a) Medical assistance may be paid for 
81.33 	a person who is employed and who:
82.1 	(1) but for excess earnings or assets meets the definition of disabled under the 
82.2 	Supplemental Security Income program; and
82.3 	(2) pays a premium and other obligations under paragraph (d).
82.4 	(b) For purposes of eligibility, there is a $65 earned income disregard. To be eligible 
82.5 	for medical assistance under this subdivision, a person must have more than $65 of earned 
82.6 	income, be receiving an unemployment insurance benefit under chapter 268 that the person 
82.7 	began receiving while eligible under this subdivision, or be receiving family and medical 
82.8 	leave benefits under chapter 268B that the person began receiving while eligible under this 
82.9 	subdivision. A person who is self-employed must file and pay all applicable taxes. Any 
82.10 	spousal income shall be disregarded for purposes of eligibility and premium determinations.
82.11 	(c) After the month of enrollment, a person enrolled in medical assistance under this 
82.12 	subdivision who would otherwise be ineligible and be disenrolled due to one of the following 
82.13 	circumstances may retain eligibility for up to four consecutive months after a month of job 
82.14 	loss if the person:
82.15 	(1) is temporarily unable to work and without receipt of earned income due to a medical 
82.16 	condition, as verified by a physician, advanced practice registered nurse, or physician 
82.17 	assistant; or
82.18 	(2) loses employment for reasons not attributable to the enrollee, and is without receipt 
82.19 	of earned income.
82.20 	To receive a four-month extension of continued eligibility under this paragraph, enrollees 
82.21 	must verify the medical condition or provide notification of job loss, continue to meet all 
82.22 	other eligibility requirements, and continue to pay all calculated premium costs.
82.23 	(d) All enrollees must pay a premium to be eligible for medical assistance under this 
82.24 	subdivision, except as provided under clause (5).
82.25 	(1) An enrollee must pay the greater of a $35 premium or the premium calculated based 
82.26 	on the person's gross earned and unearned income and the applicable family size using a 
82.27 	sliding fee scale established by the commissioner, which begins at one percent of income 
82.28 	at 100 percent of the federal poverty guidelines and increases to 7.5 percent of income for 
82.29 	those with incomes at or above 300 percent of the federal poverty guidelines.
82.30 	(2) Annual adjustments in the premium schedule based upon changes in the federal 
82.31 	poverty guidelines shall be effective for premiums due in July of each year.
82.32 	(3) All enrollees who receive unearned income must pay one-half of one percent of 
82.33 	unearned income in addition to the premium amount, except as provided under clause (5).
83.1 	(4) Increases in benefits under title II of the Social Security Act shall not be counted as 
83.2 	income for purposes of this subdivision until July 1 of each year.
83.3 	(5) Effective July 1, 2009, American Indians are exempt from paying premiums as 
83.4 	required by section 5006 of the American Recovery and Reinvestment Act of 2009, Public 
83.5 	Law 111-5. For purposes of this clause, an American Indian is any person who meets the 
83.6 	definition of Indian according to Code of Federal Regulations, title 42, section 447.50.
83.7 	(e) A person's eligibility and premium shall be determined by the local county agency. 
83.8 	Premiums must be paid to the commissioner. All premiums are dedicated to the 
83.9 	commissioner.
83.10 	(f) Any required premium shall be determined at application and redetermined at the 
83.11 	enrollee's 12-month income review or when a change in income or household size is reported. 
83.12 	Enrollees must report any change in income or household size within 30 days of when the 
83.13 	change occurs. A decreased premium resulting from a reported change in income or 
83.14 	household size shall be effective the first day of the next available billing month after the 
83.15 	change is reported. Except for changes occurring from annual cost-of-living increases, a 
83.16 	change resulting in an increased premium shall not affect the premium amount until the 
83.17 	next 12-month review.
83.18 	(g) Premium payment is due upon notification from the commissioner of the premium 
83.19 	amount required. Premiums may be paid in installments at the discretion of the commissioner.
83.20 	(h) Nonpayment of the premium shall result in denial or termination of medical assistance 
83.21 	unless the person demonstrates good cause for nonpayment. "Good cause" means an excuse 
83.22 	for the enrollee's failure to pay the required premium when due because the circumstances 
83.23 	were beyond the enrollee's control or not reasonably foreseeable. The commissioner shall 
83.24 	determine whether good cause exists based on the weight of the supporting evidence 
83.25 	submitted by the enrollee to demonstrate good cause. The commissioner must not determine 
83.26 	that good cause exists for a month for which the premium has already been paid. Except 
83.27 	when an installment agreement is accepted by the commissioner, all persons disenrolled 
83.28 	for nonpayment of a premium must pay any past due premiums as well as current premiums 
83.29 	due prior to being reenrolled. Nonpayment shall include payment with a returned, refused, 
83.30 	or dishonored instrument. The commissioner may require a guaranteed form of payment as 
83.31 	the only means to replace a returned, refused, or dishonored instrument.
83.32 	(i) For enrollees whose income does not exceed 200 percent of the federal poverty 
83.33 	guidelines and who are also enrolled in Medicare, the commissioner shall reimburse the 
84.1 	enrollee for Medicare part B premiums under section 256B.0625, subdivision 15, paragraph 
84.2 	(a).
84.3 	(j) The commissioner is authorized to determine that a premium amount was calculated 
84.4 	or billed in error, make corrections to financial records and billing systems, and refund 
84.5 	premiums collected in error.

84.6 	Sec. 11. Minnesota Statutes 2024, section 256B.0625, subdivision 4, is amended to read:
84.7 		Subd. 4.Outpatient and physician-directed clinic services. Medical assistance covers 
84.8 	outpatient hospital or physician-directed clinic services. The All services provided by
84.9 	physician-directed clinic staff shall include at least two physicians and all services shall
84.10 	must be provided under the direct supervision direction of a physician. Hospital outpatient 
84.11 	departments are subject to the same limitations and reimbursements as other enrolled vendors 
84.12 	for all services, except initial triage, emergency services, and services not provided or 
84.13 	immediately available in clinics, physicians' offices, or by other enrolled providers. 
84.14 	"Emergency services" means those medical services required for the immediate diagnosis 
84.15 	and treatment of medical conditions that, if not immediately diagnosed and treated, could 
84.16 	lead to serious physical or mental disability or death or are necessary to alleviate severe 
84.17 	pain. Neither the hospital, its employees, nor any physician or dentist, shall be liable in any 
84.18 	action arising out of a determination not to render emergency services or care if reasonable 
84.19 	care is exercised in determining the condition of the person, or in determining the 
84.20 	appropriateness of the facilities, or the qualifications and availability of personnel to render 
84.21 	these services consistent with this section.

84.22 	EFFECTIVE DATE. This section is effective upon federal approval.

84.23 	Sec. 12. Minnesota Statutes 2025 Supplement, section 256B.0759, subdivision 4, is 
84.24 	amended to read:
84.25 		Subd. 4.Provider payment rates. (a) Payment rates for participating providers must 
84.26 	be increased for services provided to medical assistance enrollees. To receive a rate increase, 
84.27 	participating providers must meet demonstration project requirements and provide evidence 
84.28 	of formal referral arrangements with providers delivering step-up or step-down levels of 
84.29 	care. Providers that have enrolled in the demonstration project but have not met the provider 
84.30 	standards under subdivision 3 as of July 1, 2022, are not eligible for a rate increase under 
84.31 	this subdivision until the date that the provider meets the provider standards in subdivision 
84.32 	3. Services provided from July 1, 2022, to the date that the provider meets the provider 
84.33 	standards under subdivision 3 shall be reimbursed at rates according to section 254B.0505, 
85.1 	subdivision 1. Rate increases paid under this subdivision to a provider for services provided 
85.2 	between July 1, 2021, and July 1, 2022, are not subject to recoupment when the provider 
85.3 	is taking meaningful steps to meet demonstration project requirements that are not otherwise 
85.4 	required by law, and the provider provides documentation to the commissioner, upon request, 
85.5 	of the steps being taken.
85.6 	(b) The commissioner may temporarily suspend payments to the provider according to 
85.7 	section 256B.04, subdivision 21, paragraph (d) 256B.0442, subdivision 1, if the provider 
85.8 	does not meet the requirements in paragraph (a). Payments withheld from the provider must 
85.9 	be made once the commissioner determines that the requirements in paragraph (a) are met.
85.10 	(c) For outpatient individual and group substance use disorder services under section 
85.11 	254B.0505, subdivision 1, clause (1), and adolescent treatment programs that are licensed 
85.12 	as outpatient treatment programs according to sections 245G.01 to 245G.18, provided on 
85.13 	or after January 1, 2021, payment rates must be increased by 20 percent over the rates in 
85.14 	effect on December 31, 2020.
85.15 	(d) Effective January 1, 2021, and contingent on annual federal approval, managed care 
85.16 	plans and county-based purchasing plans must reimburse providers of the substance use 
85.17 	disorder services meeting the criteria described in paragraph (a) who are employed by or 
85.18 	under contract with the plan an amount that is at least equal to the fee-for-service base rate 
85.19 	payment for the substance use disorder services described in paragraph (c). The commissioner 
85.20 	must monitor the effect of this requirement on the rate of access to substance use disorder 
85.21 	services and residential substance use disorder rates. Capitation rates paid to managed care 
85.22 	organizations and county-based purchasing plans must reflect the impact of this requirement. 
85.23 	This paragraph expires if federal approval is not received at any time as required under this 
85.24 	paragraph.
85.25 	(e) Effective July 1, 2021, contracts between managed care plans and county-based 
85.26 	purchasing plans and providers to whom paragraph (d) applies must allow recovery of 
85.27 	payments from those providers if, for any contract year, federal approval for the provisions 
85.28 	of paragraph (d) is not received, and capitation rates are adjusted as a result. Payment 
85.29 	recoveries must not exceed the amount equal to any decrease in rates that results from this 
85.30 	provision.
85.31 	(f) For substance use disorder services with medications for opioid use disorder under 
85.32 	section 254B.0505, subdivision 1, clause (7), provided on or after January 1, 2021, payment 
85.33 	rates must be increased by 20 percent over the rates in effect on December 31, 2020. Upon 
86.1 	implementation of new rates according to section 254B.121, the 20 percent increase will 
86.2 	no longer apply.

86.3 	Sec. 13. Minnesota Statutes 2025 Supplement, section 256B.0949, subdivision 16, is 
86.4 	amended to read:
86.5 		Subd. 16.Agency duties. (a) An agency delivering an EIDBI service under this section 
86.6 	must:
86.7 	(1) enroll as a medical assistance Minnesota health care program provider according to 
86.8 	Minnesota Rules, part 9505.0195, and section 256B.04, subdivision 21 sections 256B.044 
86.9 	to 256B.0444, and meet all applicable provider standards and requirements;
86.10 	(2) designate an individual as the agency's compliance officer who must perform the 
86.11 	duties described in section 256B.04, subdivision 21, paragraph (g) 256B.044, subdivision 
86.12 	7, paragraph (b);
86.13 	(3) demonstrate compliance with federal and state laws for the delivery of and billing 
86.14 	for EIDBI service;
86.15 	(4) verify and maintain records of a service provided to the person or the person's legal 
86.16 	representative as required under Minnesota Rules, parts 9505.2175 and 9505.2197;
86.17 	(5) demonstrate that while enrolled or seeking enrollment as a Minnesota health care 
86.18 	program provider the agency did not have a lead agency contract or provider agreement 
86.19 	discontinued because of a conviction of fraud; or did not have an owner, board member, or 
86.20 	manager fail a state or federal criminal background check or appear on the list of excluded 
86.21 	individuals or entities maintained by the federal Department of Human Services Office of 
86.22 	Inspector General;
86.23 	(6) have established business practices including written policies and procedures, internal 
86.24 	controls, and a system that demonstrates the organization's ability to deliver quality EIDBI 
86.25 	services, appropriately submit claims, conduct required staff training, document staff 
86.26 	qualifications, document service activities, and document service quality;
86.27 	(7) have an office located in Minnesota or a border state;
86.28 	(8) initiate a background study as required under subdivision 16a;
86.29 	(9) report maltreatment according to section 626.557 and chapter 260E;
86.30 	(10) comply with any data requests consistent with the Minnesota Government Data 
86.31 	Practices Act, sections 256B.064 and 256B.27;
87.1 	(11) provide training for all agency staff on the requirements and responsibilities listed 
87.2 	in the Maltreatment of Minors Act, chapter 260E, and the Vulnerable Adult Protection Act, 
87.3 	section 626.557, including mandated and voluntary reporting, nonretaliation, and the agency's 
87.4 	policy for all staff on how to report suspected abuse and neglect;
87.5 	(12) have a written policy to resolve issues collaboratively with the person and the 
87.6 	person's legal representative when possible. The policy must include a timeline for when 
87.7 	the person and the person's legal representative will be notified about issues that arise in 
87.8 	the provision of services;
87.9 	(13) provide the person's legal representative with prompt notification if the person is 
87.10 	injured while being served by the agency. An incident report must be completed by the 
87.11 	agency staff member in charge of the person. A copy of all incident and injury reports must 
87.12 	remain on file at the agency for at least five years from the report of the incident;
87.13 	(14) before starting a service, provide the person or the person's legal representative a 
87.14 	description of the treatment modality that the person shall receive, including the staffing 
87.15 	certification levels and training of the staff who shall provide a treatment;
87.16 	(15) provide clinical supervision for a minimum of one hour for every 16 hours of direct 
87.17 	treatment per person, unless otherwise authorized in the person's individual treatment plan; 
87.18 	and
87.19 	(16) provide required EIDBI intervention observation and direction at least once per 
87.20 	month. Notwithstanding subdivision 13, paragraph (l), required EIDBI intervention 
87.21 	observation and direction under this clause may be conducted via telehealth provided that 
87.22 	no more than two consecutive monthly required EIDBI intervention observation and direction 
87.23 	sessions under this clause are conducted via telehealth.
87.24 	(b) Upon request of the commissioner, an agency delivering services under this section 
87.25 	must:
87.26 	(1) identify the agency's controlling individuals, as defined under section 245A.02, 
87.27 	subdivision 5a;
87.28 	(2) provide disclosures of the use of billing agencies and other consultants who do not 
87.29 	provide EIDBI services; and
87.30 	(3) provide copies of any contracts with consultants or independent contractors who do 
87.31 	not provide EIDBI services, including hours contracted and responsibilities.
87.32 	(c) When delivering the ITP, and annually thereafter, an agency must provide the person 
87.33 	or the person's legal representative with:
88.1 	(1) a written copy and a verbal explanation of the person's or person's legal 
88.2 	representative's rights and the agency's responsibilities;
88.3 	(2) documentation in the person's file the date that the person or the person's legal 
88.4 	representative received a copy and explanation of the person's or person's legal 
88.5 	representative's rights and the agency's responsibilities; and
88.6 	(3) reasonable accommodations to provide the information in another format or language 
88.7 	as needed to facilitate understanding of the person's or person's legal representative's rights 
88.8 	and the agency's responsibilities.

88.9 	Sec. 14. Minnesota Statutes 2024, section 256B.0949, subdivision 17, is amended to read:
88.10 		Subd. 17.Provider shortage; authority for exceptions. (a) In consultation with the 
88.11 	Early Intensive Developmental and Behavioral Intervention Advisory Council and 
88.12 	stakeholders, including agencies, professionals, parents of people with ASD or a related 
88.13 	condition, and advocacy organizations, the commissioner shall determine if a shortage of 
88.14 	EIDBI providers exists. For the purposes of this subdivision, "shortage of EIDBI providers" 
88.15 	means a lack of availability of providers who meet the EIDBI provider qualification 
88.16 	requirements under subdivision 15 that results in the delay of access to timely services under 
88.17 	this section, or that significantly impairs the ability of a provider agency to have sufficient 
88.18 	providers to meet the requirements of this section. The commissioner shall consider 
88.19 	geographic factors when determining the prevalence of a shortage. The commissioner may 
88.20 	determine that a shortage exists only in a specific region of the state, multiple regions of 
88.21 	the state, or statewide. The commissioner shall also consider the availability of various types 
88.22 	of treatment modalities covered under this section.
88.23 	(b) The commissioner, in consultation with the Early Intensive Developmental and 
88.24 	Behavioral Intervention Advisory Council and stakeholders, must establish processes and 
88.25 	criteria for granting an exception under this paragraph. The commissioner may grant an 
88.26 	exception only if the exception would not compromise a person's safety and not diminish 
88.27 	the effectiveness of the treatment. The commissioner may establish an expiration date for 
88.28 	an exception granted under this paragraph. The commissioner may grant an exception for 
88.29 	the following:
88.30 	(1) EIDBI provider qualifications under this section;
88.31 	(2) medical assistance provider enrollment requirements under section 256B.04, 
88.32 	subdivision 21 sections 256B.044 to 256B.0444; or
88.33 	(3) EIDBI provider or agency standards or requirements.
89.1 	(c) If the commissioner, in consultation with the Early Intensive Developmental and 
89.2 	Behavioral Intervention Advisory Council and stakeholders, determines that a shortage no 
89.3 	longer exists, the commissioner must submit a notice that a shortage no longer exists to the 
89.4 	chairs and ranking minority members of the senate and the house of representatives 
89.5 	committees with jurisdiction over health and human services. The commissioner must post 
89.6 	the notice for public comment for 30 days. The commissioner shall consider public comments 
89.7 	before submitting to the legislature a request to end the shortage declaration. The 
89.8 	commissioner shall not declare the shortage of EIDBI providers ended without direction 
89.9 	from the legislature to declare it ended.

89.10 	Sec. 15. Minnesota Statutes 2024, section 256L.05, subdivision 3, is amended to read:
89.11 		Subd. 3.Effective date of coverage. (a) The effective date of coverage is the first day 
89.12 	of the month following the month in which eligibility is approved and the first premium 
89.13 	payment has been received. The effective date of coverage for new members added to the 
89.14 	family is the first day of the month following the month in which the change is reported. 
89.15 	All eligibility criteria must be met by the family at the time the new family member is added. 
89.16 	The income of the new family member is included with the family's modified adjusted gross 
89.17 	income and the adjusted premium begins in the month the new family member is added.
89.18 	(b) The initial premium must be received by the last working day of the month for 
89.19 	coverage to begin the first day of the following month.
89.20 	(c) Notwithstanding any other law to the contrary, benefits under sections 256L.01 to 
89.21 	256L.18 are secondary to a plan of insurance or benefit program under which an eligible 
89.22 	person may have coverage and the commissioner shall use cost avoidance techniques to 
89.23 	ensure coordination of any other health coverage for eligible persons. The commissioner 
89.24 	shall identify eligible persons who may have coverage or benefits under other plans of 
89.25 	insurance or who become eligible for medical assistance.
89.26 	(d) The effective date of coverage for individuals or families who are exempt from 
89.27 	paying premiums under section 256L.15, subdivision subdivisions 1, paragraph (c) and 2, 
89.28 	is the first day of the month following the month in which eligibility is approved.

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

89.30 	Sec. 16. Minnesota Statutes 2024, section 256L.06, subdivision 3, is amended to read:
89.31 		Subd. 3.Commissioner's duties and payment. (a) Premiums are dedicated to the 
89.32 	commissioner for MinnesotaCare.
90.1 	(b) The commissioner shall develop and implement procedures to: (1) require enrollees 
90.2 	to report changes in income; (2) adjust sliding scale premium payments, based upon both 
90.3 	increases and decreases in enrollee income, at the time the change in income is reported; 
90.4 	and (3) disenroll enrollees from MinnesotaCare for failure to pay required premiums. Failure 
90.5 	to pay includes payment with a dishonored check, a returned automatic bank withdrawal, 
90.6 	or a refused credit card or debit card payment. The commissioner may demand a guaranteed 
90.7 	form of payment, including a cashier's check or a money order, as the only means to replace 
90.8 	a dishonored, returned, or refused payment.
90.9 	(c) Premiums are calculated on a calendar month basis and may be paid on a monthly, 
90.10 	quarterly, or semiannual basis, with the first payment due upon notice from the commissioner 
90.11 	of the premium amount required. The commissioner shall inform applicants and enrollees 
90.12 	of these premium payment options. Premium payment is required before enrollment is 
90.13 	complete and to maintain eligibility coverage in MinnesotaCare. Premium payments received 
90.14 	before noon are credited the same day. Premium payments received after noon are credited 
90.15 	on the next working day.
90.16 	(d) Nonpayment of the premium will result in disenrollment from the plan effective for 
90.17 	the calendar month following the month for which the premium was due. Persons disenrolled 
90.18 	for nonpayment may not reenroll prior to the first day of the month following the payment 
90.19 	of an amount equal to two months' premiums one monthly premium.
90.20 	(e) The commissioner shall forgive the past-due premium for persons disenrolled under 
90.21 	paragraph (d) prior to issuing a premium invoice for the fourthnext month following 
90.22 	disenrollment.

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

90.24 	Sec. 17. Laws 2024, chapter 125, article 4, section 12, subdivision 5, is amended to read:
90.25 		Subd. 5.Report. By December 15, 2025 November 30, 2026, the commissioner must 
90.26 	provide a summary report on the pilot program to the chairs and ranking minority members 
90.27 	of the legislative committees with jurisdiction over mental health and county correctional 
90.28 	facilities.

90.29 	EFFECTIVE DATE. This section is effective retroactively from December 15, 2025.

91.1 	ARTICLE 4
91.2 	HOUSING AND ECONOMIC SUPPORTS

91.3 	Section 1. Minnesota Statutes 2024, section 245.991, subdivision 3, is amended to read:
91.4 		Subd. 3.Allowable grant activities. Grantees must provide homeless outreach and case 
91.5 	management services. Projects may provide clinical assessment, habilitation and rehabilitation 
91.6 	services, community mental health services, substance use disorder treatment, housing 
91.7 	transition and sustaining services, or direct assistance funding. Services must be provided 
91.8 	to individuals with a serious mental illness, substance use disorder, or with a co-occurring 
91.9 	substance use disorder, and who are homeless or at imminent risk of homelessness. 
91.10 	Individuals receiving homeless outreach services may be presumed eligible until a serious 
91.11 	mental illness can be verified.

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

91.13 	Sec. 2. Minnesota Statutes 2024, section 245.992, subdivision 2, is amended to read:
91.14 		Subd. 2.Eligible beneficiaries. Program activities must be provided to people with a 
91.15 	serious mental illness, substance use disorder, or with a co-occurring substance use disorder,
91.16 	who meet homeless criteria determined by the commissioner.

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

91.18 	Sec. 3. Minnesota Statutes 2024, section 256D.05, subdivision 1, is amended to read:
91.19 		Subdivision 1.Eligibility. (a) Each assistance unit with income and resources less than 
91.20 	the standard of assistance established by the commissioner and with a member who is a 
91.21 	resident of the state shall be eligible for and entitled to general assistance if the assistance 
91.22 	unit is:
91.23 	(1) a person who is suffering from a professionally certified permanent or temporary 
91.24 	illness, injury, or incapacity which is expected to continue for more than 45 days and which 
91.25 	prevents the person from obtaining or retaining employment;
91.26 	(2) a person whose presence in the home on a substantially continuous basis is required 
91.27 	because of the professionally certified illness, injury, incapacity, or the age of another 
91.28 	member of the household;
91.29 	(3) a person who has been placed in, and is residing in, a licensed or certified facility 
91.30 	for purposes of physical or mental health or rehabilitation, or in an approved substance use 
91.31 	disorder domiciliary facility, if the placement is based on illness or incapacity and is 
92.1 	according to a plan developed or approved by the county agency through its director or 
92.2 	designated representative;
92.3 	(4) a person not described in clause (1) or (3) who is diagnosed by a licensed physician, 
92.4 	psychological practitioner, or other qualified professional, as developmentally disabled or 
92.5 	mentally ill, and that condition prevents the person from obtaining or retaining employment;
92.6 	(5) a person who has an application pending for, or is appealing termination of benefits 
92.7 	from, the Social Security disability program or the program of Supplemental Security Income 
92.8 	for the aged, blind, and disabled, provided the person has a professionally certified permanent 
92.9 	or temporary illness, injury, or incapacity which is expected to continue for more than 30 
92.10 	days and which prevents the person from obtaining or retaining employment;
92.11 	(6) a person who is unable to obtain or retain employment because advanced age 
92.12 	significantly affects the person's ability to seek or engage in substantial work;
92.13 	(7) a person who has been assessed by a vocational specialist and, in consultation with 
92.14 	the county agency, has been determined to be unemployable for purposes of this clause; a 
92.15 	person is considered employable if there exist positions of employment in the local labor 
92.16 	market, regardless of the current availability of openings for those positions, that the person 
92.17 	is capable of performing. The person's eligibility under this category must be reassessed at 
92.18 	least annually. The county agency must provide notice to the person not later than 30 days 
92.19 	before annual eligibility under this item ends, informing the person of the date annual 
92.20 	eligibility will end and the need for vocational assessment if the person wishes to continue 
92.21 	eligibility under this clause. For purposes of establishing eligibility under this clause, it is 
92.22 	the applicant's or recipient's duty to obtain any needed vocational assessment;
92.23 	(8) a person who is determined by the county agency, according to permanent rules 
92.24 	adopted by the commissioner, to have a condition that qualifies under Minnesota's special 
92.25 	education rules as a specific learning disability, provided that a rehabilitation plan for the 
92.26 	person is developed or approved by the county agency, and the person is following the plan;
92.27 	(9) a child under the age of 18 who is not living with a parent, stepparent, or legal 
92.28 	custodian, and only if: the child is legally emancipated or living with an adult with the 
92.29 	consent of an agency acting as a legal custodian; the child is at least 16 years of age and the 
92.30 	general assistance grant is approved by the director of the county agency or a designated 
92.31 	representative as a component of a social services case plan for the child; or the child is 
92.32 	living with an adult with the consent of the child's legal custodian and the county agency. 
92.33 	For purposes of this clause, "legally emancipated" means a person under the age of 18 years 
92.34 	who: (i) has been married; (ii) is on active duty in the uniformed services of the United 
93.1 	States; (iii) has been emancipated by a court of competent jurisdiction; or (iv) is otherwise 
93.2 	considered emancipated under Minnesota law, and for whom county social services has not 
93.3 	determined that a social services case plan is necessary, for reasons other than the child has 
93.4 	failed or refuses to cooperate with the county agency in developing the plan;
93.5 	(10) a person who is eligible for displaced homemaker services, programs, or assistance 
93.6 	under section 116L.96, but only if that person is enrolled as a full-time student;
93.7 	(11) a person who is involved with protective or court-ordered services that prevent the 
93.8 	applicant or recipient from working at least four hours per day;
93.9 	(12) a person over age 18 whose primary language is not English and who is attending 
93.10 	high school at least half time; or
93.11 	(13) a person whose alcohol and drug addiction is a material factor that contributes to 
93.12 	the person's disability; applicants who assert this clause as a basis for eligibility must be 
93.13 	assessed by the county agency to determine if they are amenable to treatment; if the applicant 
93.14 	is determined to be not amenable to treatment, but is otherwise eligible for benefits, then 
93.15 	general assistance must be paid in vendor form, for the individual's shelter costs up to the 
93.16 	limit of the grant amount, with the residual, if any, paid according to section 256D.09, 
93.17 	subdivision 2a; if the applicant is determined to be amenable to treatment, then in order to 
93.18 	receive benefits, the applicant must be in a treatment program or on a waiting list and the 
93.19 	benefits must be paid in vendor form, for the individual's shelter costs, up to the limit of 
93.20 	the grant amount, with the residual, if any, paid according to section 256D.09, subdivision 
93.21 	2a.
93.22 	(b) As a condition of eligibility under paragraph (a), clauses (1), (3), (4), (7), and (8), 
93.23 	the recipient must complete an interim assistance agreement and must apply for other 
93.24 	maintenance benefits as specified in section 256D.06, subdivision 5, and must comply with 
93.25 	efforts to determine the recipient's eligibility for those other maintenance benefits.
93.26 	(c) The burden of providing documentation for a county agency to use to verify eligibility 
93.27 	for general assistance or for exemption from the Supplemental Nutrition Assistance Program 
93.28 	(SNAP) employment and training program is upon the applicant or recipient. The county 
93.29 	agency shall use documents already in its possession to verify eligibility, and shall help the 
93.30 	applicant or recipient obtain other existing verification necessary to determine eligibility 
93.31 	which the applicant or recipient does not have and is unable to obtain.

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

94.1 	Sec. 4. Minnesota Statutes 2024, section 256D.06, subdivision 2, is amended to read:
94.2 		Subd. 2.Emergency need. (a) Notwithstanding the provisions of subdivision 1, a grant 
94.3 	of emergency general assistance shall, to the extent funds are available, be made to an 
94.4 	eligible single adult, married couple, or family for an emergency need where the recipient 
94.5 	requests temporary assistance not exceeding 30 days if an emergency situation appears to 
94.6 	exist under written criteria adopted by the county agency and provided to the commissioner 
94.7 	annually. If an applicant or recipient relates facts to the county agency which may be 
94.8 	sufficient to constitute an emergency situation, the county agency shall, to the extent funds 
94.9 	are available, advise the person of the procedure for applying for assistance according to 
94.10 	this subdivision.
94.11 	(b) The applicant must be ineligible for assistance under chapter 142G, must have annual 
94.12 	net income no greater than 200 percent of the federal poverty guidelines for the previous 
94.13 	calendar year, and may receive an emergency assistance grant not more than once in any 
94.14 	12-month period.
94.15 	(c) Funding for an emergency general assistance program is limited to the appropriation. 
94.16 	Each fiscal year, the commissioner shall allocate to counties the money appropriated for 
94.17 	emergency general assistance grants based on each county agency's average share of state's 
94.18 	emergency general expenditures for the immediate past three fiscal years as determined by 
94.19 	the commissioner, and may reallocate any unspent amounts to other counties. No county 
94.20 	shall be allocated less than $1,000 for a fiscal year.
94.21 	(d) Any emergency general assistance expenditures by a county above the amount of 
94.22 	the commissioner's allocation to the county must be made from county funds.

94.23 	EFFECTIVE DATE. This section is effective August 1, 2026.

94.24 	Sec. 5. Minnesota Statutes 2024, section 256D.54, subdivision 1, is amended to read:
94.25 		Subdivision 1.Potential eligibility. An applicant or recipient who is otherwise eligible 
94.26 	for supplemental aid and who is potentially eligible for maintenance benefits from any other 
94.27 	source shall (1) apply for those benefits within 30 90 days of the county's determination of 
94.28 	potential eligibility for those benefits; and (2) execute an interim assistance authorization 
94.29 	agreement on a form as directed by the commissioner.

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

95.1 	Sec. 6. Minnesota Statutes 2024, section 256I.04, subdivision 2b, is amended to read:
95.2 		Subd. 2b.Housing support agreements. (a) Agreements between agencies and providers 
95.3 	of housing support must be in writing on a form developed and approved by the commissioner 
95.4 	and must specify the name and address under which the establishment subject to the 
95.5 	agreement does business and under which the establishment, or service provider, if different 
95.6 	from the establishment, is licensed by the Department of Health or the Department of Human 
95.7 	Services; the specific license or registration from the Department of Health or the Department 
95.8 	of Human Services held by the provider and the number of beds subject to that license; the 
95.9 	address of the location or locations at which housing support is provided under this 
95.10 	agreement; the per diem and monthly rates that are to be paid from housing support funds 
95.11 	for each eligible resident at each location; the number of beds at each location which are 
95.12 	subject to the agreement; whether the license holder is a not-for-profit corporation under 
95.13 	section 501(c)(3) of the Internal Revenue Code; and a statement that the agreement is subject 
95.14 	to the provisions of sections 256I.01 to 256I.06 and subject to any changes to those sections.
95.15 	(b) Providers are required to verify the following minimum requirements in the 
95.16 	agreement:
95.17 	(1) current license or registration, including authorization if managing or monitoring 
95.18 	medications;
95.19 	(2) all staff who have direct contact with recipients meet the staff qualifications;
95.20 	(3) the provision of housing support;
95.21 	(4) the provision of supplementary services, if applicable;
95.22 	(5) reports of adverse events, including recipient death or serious injury;
95.23 	(6) submission of residency requirements that could result in recipient eviction; and
95.24 	(7) confirmation that the provider will not limit or restrict the number of hours an 
95.25 	applicant or recipient chooses to be employed, as specified in subdivision 5.
95.26 	(c) Agreements may be terminated with or without cause by the commissioner, the 
95.27 	agency, or the provider with two calendar months prior notice. The commissioner may 
95.28 	immediately terminate an agreement under subdivision 2d.
95.29 	(d) Agencies must develop and make available to prospective housing support providers 
95.30 	a process by which the agency seeks, reviews, and approves housing support agreements 
95.31 	and must report processes and results to the commissioner in a format defined by the 
95.32 	commissioner.

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

96.2 	Sec. 7. Minnesota Statutes 2024, section 256K.46, subdivision 5, is amended to read:
96.3 		Subd. 5.Reporting. Grant recipients shall report annually on the use of shelter-linked 
96.4 	youth mental health grants to the commissioner by December 31, beginning in 2020. Each 
96.5 	report shall include the name and location of the grant recipient, the amount of each grant, 
96.6 	the youth mental health services provided, and the number of youth receiving services. The 
96.7 	commissioner shall determine the form required for the reports and may specify additional 
96.8 	reporting requirements. The commissioner shall include the shelter-linked youth mental 
96.9 	health services program in the biennial report required under section 256K.45, subdivision 
96.10 	2.

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

96.12 	Sec. 8. REPEALER.
 96.13 	Minnesota Statutes 2024, sections 256D.09, subdivisions 2a and 2b; and 256K.45, 
96.14 	subdivision 2, are repealed.

96.15 	ARTICLE 5
96.16 	OFFICE OF THE INSPECTOR GENERAL

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

96.24 	Sec. 2. Minnesota Statutes 2024, section 245.095, subdivision 2, is amended to read:
96.25 		Subd. 2.Definitions. (a) For purposes of this section, the following definitions have the 
96.26 	meanings given.
96.27 	(b) "Associated entity" means a provider or vendor owned or controlled by an excluded 
96.28 	individual.
97.1 	(c) "Associated individual" means an individual or entity that has a relationship with 
97.2 	the business or its owners or controlling individuals, such that the individual or entity would 
97.3 	have knowledge of the financial practices of the program in question.
97.4 	(d) "Convicted" means a judgment of conviction has been entered by a federal, state, or 
97.5 	local court, regardless of whether an appeal from the judgment is pending, and includes a 
97.6 	stay of adjudication, a court-ordered diversion program, or a plea of guilty or nolo contendere.
97.7 	(e) "Credible allegation of fraud" means an allegation that has been verified by the 
97.8 	commissioner from any source, including but not limited to:
97.9 	(1) fraud hotline complaints;
97.10 	(2) claims data mining;
97.11 	(3) patterns identified through provider audits, civil false claims cases, and law 
97.12 	enforcement investigations; and
97.13 	(4) court filings and other legal documents, including but not limited to police reports, 
97.14 	complaints, indictments, informations, affidavits, declarations, and search warrants.
97.15 	(d) (f) "Excluded" means removed under other authorities from a program administered 
97.16 	by a Minnesota state or federal agency, including. Excluded includes but is not limited to:
97.17 	(1) a final determination to stop payments.;
97.18 	(2) a conclusive background study disqualification, except for a disqualification issued 
97.19 	under section 245C.15, subdivision 4c, that has not been set aside or had a variance granted 
97.20 	under section 245C.15; and
97.21 	(3) a final agency decision regarding a denial of a license application.
97.22 	(g) "Fraud" has the meaning given in section 256B.02, subdivision 20.
97.23 	(e) (h) "Individual" means a natural person providing products or services as a provider 
97.24 	or vendor.
97.25 	(f) (i) "Provider" means any entity, individual, owner, controlling individual, license 
97.26 	holder, director, or managerial official of an entity receiving payment from a program 
97.27 	administered by a Minnesota state or federal agency.

97.28 	Sec. 3. Minnesota Statutes 2024, section 245.095, subdivision 5, is amended to read:
97.29 		Subd. 5.Withholding of payments. (a) Except as otherwise provided by state or federal 
97.30 	law, the commissioner may withhold payments to a provider, vendor, individual, associated 
98.1 	individual, or associated entity in any program administered by the commissioner if the 
98.2 	commissioner determines:
98.3 	(1) there is a credible allegation of fraud for which an investigation is pending for a 
98.4 	program administered by a Minnesota state or federal agency.;
98.5 	(2) the individual, the entity, or an associated individual or entity was convicted of a 
98.6 	crime, in state or federal court, for an offense that involves fraud or theft against a program 
98.7 	administered by the commissioner or another state or federal agency;
98.8 	(3) the provider is operating after a state or federal agency orders the suspension, 
98.9 	revocation, or decertification of the provider's license or certification, or if the provider is 
98.10 	subject to a temporary immediate suspension, regardless of whether the action is under 
98.11 	appeal; or
98.12 	(4) the provider, vendor, individual, associated individual, or associated entity, including 
98.13 	those receiving funds under any contract or registered program, has a background study 
98.14 	disqualification under section 245C.15, subdivisions 1 to 4b, that has not been set aside and 
98.15 	for which no variance has been issued.
98.16 	(b) For purposes of this subdivision, "credible allegation of fraud" means an allegation 
98.17 	that has been verified by the commissioner from any source, including but not limited to:
98.18 	(1) fraud hotline complaints;
98.19 	(2) claims data mining;
98.20 	(3) patterns identified through provider audits, civil false claims cases, and law 
98.21 	enforcement investigations; and
98.22 	(4) court filings and other legal documents, including but not limited to police reports, 
98.23 	complaints, indictments, informations, affidavits, declarations, and search warrants.
98.24 	(c) (b) The commissioner must send notice of the withholding of payments within five 
98.25 	days of taking such action. The notice must:
98.26 	(1) state that payments are being withheld according to this subdivision;
98.27 	(2) set forth the general allegations related to the withholding action, except the notice 
98.28 	need not disclose specific information concerning an ongoing investigation;
98.29 	(3) state that the withholding is for a temporary period and cite the circumstances under 
98.30 	which the withholding will be terminated; and
99.1 	(4) inform the provider, vendor, individual, associated individual, or associated entity 
99.2 	of the right to submit written evidence to contest the withholding action for consideration 
99.3 	by the commissioner.
99.4 	(d) (c) If the commissioner withholds payments under this subdivision, the provider, 
99.5 	vendor, individual, associated individual, or associated entity has a right to request 
99.6 	administrative reconsideration. A request for administrative reconsideration must be made 
99.7 	in writing, state with specificity the reasons the payment withholding decision is in error, 
99.8 	and include documents to support the request. Within 60 days from receipt of the request, 
99.9 	the commissioner shall judiciously review allegations, facts, evidence available to the 
99.10 	commissioner, and information submitted by the provider, vendor, individual, associated 
99.11 	individual, or associated entity to determine whether the payment withholding should remain 
99.12 	in place.
99.13 	(e) (d) The commissioner shall stop withholding payments if the commissioner determines 
99.14 	there is insufficient evidence of fraud by the provider, vendor, individual, associated 
99.15 	individual, or associated entity or when legal proceedings relating to the alleged fraud are 
99.16 	completed, unless the commissioner has sent notice under subdivision 3 to the provider, 
99.17 	vendor, individual, associated individual, or associated entity.
99.18 	(f) (e) The withholding of payments under this section is a temporary action and is not 
99.19 	subject to appeal under section 256.045 or chapter 14.
99.20 	(f) Section 15.013 does not apply to the commissioner taking action under this section.

99.21 	Sec. 4. Minnesota Statutes 2024, section 245A.02, subdivision 13, is amended to read:
99.22 		Subd. 13.Individual who is related. "Individual who is related" means a spouse, a 
99.23 	parent, a birth or adopted child or stepchild, a stepparent, a stepbrother, a stepsister, a niece, 
99.24 	a nephew, an adoptive parent, a grandparent, a sibling, an aunt, an uncle, a cousin, or a legal 
99.25 	guardian, including an individual who has a relationship named in this subdivision through 
99.26 	marriage.

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

99.28 	Sec. 5. Minnesota Statutes 2025 Supplement, section 245A.03, subdivision 2, is amended 
99.29 	to read:
99.30 		Subd. 2.Exclusion from licensure. (a) This chapter does not apply to:
99.31 	(1) residential or nonresidential programs that are provided to a person by an individual 
99.32 	who is related;
100.1 	(2) nonresidential programs that are provided by an unrelated individual to persons from 
100.2 	a single related family;
100.3 	(3) residential or nonresidential programs that are provided to adults who do not misuse 
100.4 	substances or have a substance use disorder, a mental illness, a developmental disability, a 
100.5 	functional impairment, or a physical disability;
100.6 	(4) sheltered workshops or work activity programs that are certified by the commissioner 
100.7 	of employment and economic development;
100.8 	(5) programs operated by a public school for children 33 months or older;
100.9 	(6) nonresidential programs primarily for children that provide care or supervision for 
100.10 	periods of less than three hours a day while the child's parent or legal guardian is in the 
100.11 	same building as the nonresidential program or present within another building that is 
100.12 	directly contiguous to the building in which the nonresidential program is located;
100.13 	(7) nursing homes or hospitals licensed by the commissioner of health except as specified 
100.14 	under section 245A.02;
100.15 	(8) board and lodge facilities licensed by the commissioner of health that do not provide 
100.16 	children's residential services under Minnesota Rules, chapter 2960, mental health or 
100.17 	substance use disorder treatment;
100.18 	(9) programs licensed by the commissioner of corrections;
100.19 	(10) recreation programs for children or adults that are operated or approved by a park 
100.20 	and recreation board whose primary purpose is to provide social and recreational activities;
100.21 	(11) noncertified boarding care homes unless they provide services for five or more 
100.22 	persons whose primary diagnosis is mental illness or a developmental disability;
100.23 	(12) programs for children such as scouting, boys clubs, girls clubs, and sports and art 
100.24 	programs, and nonresidential programs for children provided for a cumulative total of less 
100.25 	than 30 days in any 12-month period;
100.26 	(13) residential programs for persons with mental illness, that are located in hospitals;
100.27 	(14) camps licensed by the commissioner of health under Minnesota Rules, chapter 
100.28 	4630;
100.29 	(15) mental health outpatient services for adults with mental illness or children with 
100.30 	mental illness;
101.1 	(16) residential programs serving school-age children whose sole purpose is cultural or 
101.2 	educational exchange, until the commissioner adopts appropriate rules;
101.3 	(17) community support services programs as defined in section 245.462, subdivision 
101.4 	6, and family community support services as defined in section 245.4871, subdivision 17;
101.5 	(18) assisted living facilities licensed by the commissioner of health under chapter 144G;
101.6 	(19) substance use disorder treatment activities of licensed professionals in private 
101.7 	practice as defined in section 245G.01, subdivision 17;
101.8 	(20) consumer-directed community support service funded under the Medicaid waiver 
101.9 	for persons with developmental disabilities when the individual who provided the service 
101.10 	is:
101.11 	(i) the same individual who is the direct payee of these specific waiver funds or paid by 
101.12 	a fiscal agent, fiscal intermediary, or employer of record; and
101.13 	(ii) not otherwise under the control of a residential or nonresidential program that is 
101.14 	required to be licensed under this chapter when providing the service;
101.15 	(21) a county that is an eligible vendor under section 254B.0501 to provide care 
101.16 	coordination and comprehensive assessment services;
101.17 	(22) a recovery community organization that is an eligible vendor under section 
101.18 	254B.0501 to provide peer recovery support services; or
101.19 	(23) programs licensed by the commissioner of children, youth, and families in chapter 
101.20 	142B.
101.21 	(b) For purposes of paragraph (a), clause (6), a building is directly contiguous to a 
101.22 	building in which a nonresidential program is located if it shares a common wall with the 
101.23 	building in which the nonresidential program is located or is attached to that building by 
101.24 	skyway, tunnel, atrium, or common roof.
101.25 	(c) Except for the home and community-based services identified in section 245D.03, 
101.26 	subdivision 1, nothing in this chapter shall be construed to require licensure for any services 
101.27 	provided and funded according to an approved federal waiver plan where licensure is 
101.28 	specifically identified as not being a condition for the services and funding.
101.29 	(d) Notwithstanding section 245A.02, subdivision 13, programs initially licensed prior 
101.30 	to July 1, 2026, may continue to operate under the definition of related individual in 
101.31 	Minnesota Statutes 2024, section 245A.02, subdivision 13, until the service recipient related 
102.1 	to the license holder by marriage or as a cousin is no longer receiving services licensed 
102.2 	under this chapter.

102.3 	Sec. 6. Minnesota Statutes 2024, section 245A.043, subdivision 2, is amended to read:
102.4 		Subd. 2.Change in ownership. (a) If the commissioner determines that there is a change 
102.5 	in ownership, the commissioner shall require submission of a new license application. This 
102.6 	subdivision does not apply to a licensed program or service located in a home where the 
102.7 	license holder resides. A change in ownership occurs when:
102.8 	(1) except as provided in paragraph (b), the license holder sells or transfers 100 percent 
102.9 	of the property, stock, or assets;
102.10 	(2) the license holder merges with another organization;
102.11 	(3) the license holder consolidates with two or more organizations, resulting in the 
102.12 	creation of a new organization;
102.13 	(4) there is a change to the federal tax identification number associated with the license 
102.14 	holder; or
102.15 	(5) except as provided in paragraph (b), all controlling individuals for the original license 
102.16 	have changed.
102.17 	(b) For changes under paragraph (a), clause (1) or (5), no change in ownership has 
102.18 	occurred and a new license application is not required if at least one controlling individual 
102.19 	has been affiliated as a controlling individual for the license for at least the previous 12 
102.20 	months immediately preceding the change.

102.21 	Sec. 7. Minnesota Statutes 2025 Supplement, section 245A.043, subdivision 2a, is amended 
102.22 	to read:
102.23 		Subd. 2a.Review of change in ownership. (a) After a change in ownership under 
102.24 	subdivision 2, paragraph (a), the commissioner may complete a review for all new license 
102.25 	holders within 12 months after the new license is issued.
102.26 	(b) For all license holders subject to the exception in subdivision 2, paragraph (b), the 
102.27 	license holder must notify the commissioner of the date of the change in controlling 
102.28 	individuals pursuant to section 245A.04, subdivision 7a, and the commissioner may complete 
102.29 	a review within 12 months following the change.

103.1 	Sec. 8. Minnesota Statutes 2024, section 245A.07, subdivision 2a, is amended to read:
103.2 		Subd. 2a.Immediate suspension expedited hearing. (a) Within five working days of 
103.3 	receipt of the license holder's timely appeal, the commissioner shall request assignment of 
103.4 	an administrative law judge. The request must include a proposed date, time, and place of 
103.5 	a hearing. A hearing must be conducted by an administrative law judge within 30 calendar 
103.6 	days of the request for assignment, unless an extension is requested by either party and 
103.7 	granted by the administrative law judge for good cause. The commissioner shall issue a 
103.8 	notice of hearing by certified mail or personal service at least ten working days before the 
103.9 	hearing. The scope of the hearing shall be limited solely to the issue of whether the temporary 
103.10 	immediate suspension should remain in effect pending the commissioner's final order under 
103.11 	section 245A.08, regarding a licensing sanction issued under subdivision 3 following the 
103.12 	immediate suspension. For suspensions under subdivision 2, paragraph (a), clause (1), the 
103.13 	burden of proof in expedited hearings under this subdivision shall be limited to is met only 
103.14 	if the commissioner's demonstration commissioner demonstrates that reasonable cause exists 
103.15 	to believe that the license holder's or controlling individual's actions or failure to comply 
103.16 	with applicable law or rule poses, or the actions of other individuals or conditions in the 
103.17 	program poses an imminent risk of harm to the health, safety, or rights of persons served 
103.18 	by the program. "Reasonable cause" means there exist specific articulable facts or 
103.19 	circumstances which provide the commissioner with a reasonable suspicion that there is an 
103.20 	imminent risk of harm to the health, safety, or rights of persons served by the program. 
103.21 	When the commissioner has determined there is reasonable cause to order the temporary 
103.22 	immediate suspension of a license based on a violation of safe sleep requirements, as defined 
103.23 	in section 245A.1435, the commissioner is not required to demonstrate that an infant died 
103.24 	or was injured as a result of the safe sleep violations. For suspensions under subdivision 2, 
103.25 	paragraph (a), clause (2), the burden of proof in expedited hearings under this subdivision 
103.26 	shall be limited to is met only if the commissioner's demonstration commissioner 
103.27 	demonstrates by a preponderance of the evidence that, since the license was revoked, the 
103.28 	license holder committed additional violations of law or rule which may adversely affect 
103.29 	the health or safety of persons served by the program.
103.30 	(b) The administrative law judge shall issue findings of fact, conclusions, and a 
103.31 	recommendation within ten working days from the date of hearing. The parties shall have 
103.32 	ten calendar days to submit exceptions to the administrative law judge's report. The record 
103.33 	shall close at the end of the ten-day period for submission of exceptions. The commissioner's 
103.34 	final order shall be issued within ten working days from the close of the record. When an 
103.35 	appeal of a temporary immediate suspension is withdrawn or dismissed, the commissioner 
104.1 	shall issue a final order affirming the temporary immediate suspension within ten calendar 
104.2 	days of the commissioner's receipt of the withdrawal or dismissal. Within 90 calendar days 
104.3 	after an immediate suspension has been issued and the license holder has not submitted a 
104.4 	timely appeal under subdivision 2, paragraph (b), or within 90 calendar days after a final 
104.5 	order affirming an immediate suspension, the commissioner shall determine:
104.6 	(1) whether a final licensing sanction shall be issued under subdivision 3, paragraph (a), 
104.7 	clauses (1) to (6) (5). The license holder shall continue to be prohibited from operation of 
104.8 	the program during this 90-day period; or
104.9 	(2) whether the outcome of related, ongoing investigations or judicial proceedings are 
104.10 	necessary to determine if a final licensing sanction under subdivision 3, paragraph (a), 
104.11 	clauses (1) to (6) (5), will be issued and whether persons served by the program remain at 
104.12 	an imminent risk of harm during the investigation period or proceedings. If so, the 
104.13 	commissioner shall issue a suspension order under subdivision 3, paragraph (a), clause (7).
104.14 	(6); or
104.15 	(3) whether the license holder or controlling individual remains the subject of a pending 
104.16 	administrative, civil, or criminal investigation or subject to an administrative or civil action 
104.17 	related to fraud against a program administered by a state or federal agency. If so, the 
104.18 	commissioner shall issue a suspension order under subdivision 3, paragraph (a), clause (6).
104.19 	(c) When the final order under paragraph (b) affirms an immediate suspension, or the 
104.20 	license holder does not submit a timely appeal of the immediate suspension, and a final 
104.21 	licensing sanction is issued under subdivision 3 and the license holder appeals that sanction, 
104.22 	the license holder continues to be prohibited from operation of the program pending a final 
104.23 	commissioner's order under section 245A.08, subdivision 5, regarding the final licensing 
104.24 	sanction.
104.25 	(d) The license holder shall continue to be prohibited from operation of the program 
104.26 	while a suspension order issued under paragraph (b), clause (2) or (3), remains in effect.
104.27 	(e) For suspensions under subdivision 2, paragraph (a), clause (3), the burden of proof 
104.28 	in expedited hearings under this subdivision shall be limited to is met only if the 
104.29 	commissioner's demonstration commissioner demonstrates by a preponderance of the 
104.30 	evidence that a criminal complaint and warrant or summons was issued for the license holder 
104.31 	or controlling individual that was not dismissed, and that the criminal charge is an offense 
104.32 	that involves fraud or theft against a program administered by the commissioner.
104.33 	(f) For suspensions under subdivision 2, paragraph (c), the burden of proof in expedited 
104.34 	hearings under this subdivision is met only if the commissioner demonstrates by a 
105.1 	preponderance of the evidence that the license holder or controlling individual is the subject 
105.2 	of a pending administrative, civil, or criminal investigation or is subject to an administrative 
105.3 	or civil action related to fraud against a program administered by a state or federal agency.

105.4 	Sec. 9. Minnesota Statutes 2025 Supplement, section 245A.07, subdivision 3, is amended 
105.5 	to read:
105.6 		Subd. 3.License suspension, revocation, or fine. (a) The commissioner may suspend 
105.7 	or revoke a license, or impose a fine if:
105.8 	(1) a license holder fails to comply fully with applicable laws or rules including but not 
105.9 	limited to the requirements of this chapter and chapter 245C;
105.10 	(2) a license holder, a controlling individual, or an individual living in the household 
105.11 	where the licensed services are provided or is otherwise subject to a background study has 
105.12 	been disqualified and the disqualification was not set aside and no variance has been granted;
105.13 	(3) a license holder knowingly withholds relevant information from or gives false or 
105.14 	misleading information to the commissioner in connection with an application for a license, 
105.15 	in connection with the background study status of an individual, during an investigation, 
105.16 	or regarding compliance with applicable laws or rules;
105.17 	(4) a license holder is excluded from any program administered by the commissioner 
105.18 	under section 245.095;
105.19 	(5) revocation is required under section 245A.04, subdivision 7, paragraph (d); or
105.20 	(6) suspension is necessary under subdivision 2a, paragraph (b), clause (2) or (3).
105.21 	A license holder who has had a license issued under this chapter suspended, revoked, 
105.22 	or has been ordered to pay a fine must be given notice of the action by certified mail, by 
105.23 	personal service, or through the provider licensing and reporting hub. If mailed, the notice 
105.24 	must be mailed to the address shown on the application or the last known address of the 
105.25 	license holder. The notice must state in plain language the reasons the license was suspended 
105.26 	or revoked, or a fine was ordered.
105.27 	(b) If the license was suspended or revoked, the notice must inform the license holder 
105.28 	of the right to a contested case hearing under chapter 14 and Minnesota Rules, parts 
105.29 	1400.8505 to 1400.8612. The license holder may appeal an order suspending or revoking 
105.30 	a license. The appeal of an order suspending or revoking a license must be made in writing 
105.31 	by certified mail, by personal service, or through the provider licensing and reporting hub. 
105.32 	If mailed, the appeal must be postmarked and sent to the commissioner within ten calendar 
106.1 	days after the license holder receives notice that the license has been suspended or revoked. 
106.2 	If a request is made by personal service, it must be received by the commissioner within 
106.3 	ten calendar days after the license holder received the order. If the order is issued through 
106.4 	the provider hub, the appeal must be received by the commissioner within ten calendar days 
106.5 	from the date the commissioner issued the order through the hub. Except as provided in 
106.6 	subdivision 2a, paragraph (c), if a license holder submits a timely appeal of an order 
106.7 	suspending or revoking a license, the license holder may continue to operate the program 
106.8 	as provided in section 245A.04, subdivision 7, paragraphs (i) and (j), until the commissioner 
106.9 	issues a final order on the suspension or revocation.
106.10 	(c)(1) If the license holder was ordered to pay a fine, the notice must inform the license 
106.11 	holder of the responsibility for payment of fines and the right to a contested case hearing 
106.12 	under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The appeal of an 
106.13 	order to pay a fine must be made in writing by certified mail, by personal service, or through 
106.14 	the provider licensing and reporting hub. If mailed, the appeal must be postmarked and sent 
106.15 	to the commissioner within ten calendar days after the license holder receives notice that 
106.16 	the fine has been ordered. If a request is made by personal service, it must be received by 
106.17 	the commissioner within ten calendar days after the license holder received the order. If the 
106.18 	order is issued through the provider hub, the appeal must be received by the commissioner 
106.19 	within ten calendar days from the date the commissioner issued the order through the hub.
106.20 	(2) The license holder shall pay the fines assessed on or before the payment date specified. 
106.21 	If the license holder fails to fully comply with the order, the commissioner may issue a 
106.22 	second fine or suspend the license until the license holder complies. If the license holder 
106.23 	receives state funds, the state, county, or municipal agencies or departments responsible for 
106.24 	administering the funds shall withhold payments and recover any payments made while the 
106.25 	license is suspended for failure to pay a fine. A timely appeal shall stay payment of the fine 
106.26 	until the commissioner issues a final order.
106.27 	(3) A license holder shall promptly notify the commissioner of human services, in writing, 
106.28 	when a violation specified in the order to forfeit a fine is corrected. If upon reinspection the 
106.29 	commissioner determines that a violation has not been corrected as indicated by the order 
106.30 	to forfeit a fine, the commissioner may issue a second fine. The commissioner shall notify 
106.31 	the license holder by certified mail, by personal service, or through the provider licensing 
106.32 	and reporting hub that a second fine has been assessed. The license holder may appeal the 
106.33 	second fine as provided under this subdivision.
106.34 	(4) Fines shall be assessed as follows:
107.1 	(i) the license holder shall forfeit $1,000 for each determination of maltreatment of a 
107.2 	child under chapter 260E or the maltreatment of a vulnerable adult under section 626.557 
107.3 	for which the license holder is determined responsible for the maltreatment under section 
107.4 	260E.30, subdivision 4, paragraphs (a) and (b), or 626.557, subdivision 9c, paragraph (c);
107.5 	(ii) if the commissioner determines that a determination of maltreatment for which the 
107.6 	license holder is responsible is the result of maltreatment that meets the definition of serious 
107.7 	maltreatment as defined in section 245C.02, subdivision 18, the license holder shall forfeit 
107.8 	$5,000;
107.9 	(iii) the license holder shall forfeit $200 for each occurrence of a violation of law or rule 
107.10 	governing matters of health, safety, or supervision, including but not limited to the provision 
107.11 	of adequate staff-to-child or adult ratios, and failure to comply with background study 
107.12 	requirements under chapter 245C; and
107.13 	(iv) the license holder shall forfeit $100 for each occurrence of a violation of law or rule 
107.14 	other than those subject to a $5,000, $1,000, or $200 fine in items (i) to (iii).
107.15 	For purposes of this section, "occurrence" means each violation identified in the 
107.16 	commissioner's fine order. Fines assessed against a license holder that holds a license to 
107.17 	provide home and community-based services, as identified in section 245D.03, subdivision 
107.18 	1, and a community residential setting or day services facility license under chapter 245D 
107.19 	where the services are provided, may be assessed against both licenses for the same 
107.20 	occurrence, but the combined amount of the fines shall not exceed the amount specified in 
107.21 	this clause for that occurrence.
107.22 	(5) When a fine has been assessed, the license holder may not avoid payment by closing, 
107.23 	selling, or otherwise transferring the licensed program to a third party. In such an event, the 
107.24 	license holder will be personally liable for payment. In the case of a corporation, each 
107.25 	controlling individual is personally and jointly liable for payment.
107.26 	(d) Except for background study violations involving the failure to comply with an order 
107.27 	to immediately remove an individual or an order to provide continuous, direct supervision, 
107.28 	the commissioner shall not issue a fine under paragraph (c) relating to a background study 
107.29 	violation to a license holder who self-corrects a background study violation before the 
107.30 	commissioner discovers the violation. A license holder who has previously exercised the 
107.31 	provisions of this paragraph to avoid a fine for a background study violation may not avoid 
107.32 	a fine for a subsequent background study violation unless at least 365 days have passed 
107.33 	since the license holder self-corrected the earlier background study violation.

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

108.9	License Holder Annual Revenue
		License Fee
	
108.10	less than or equal to $10,000
		$250
	
108.11
108.12	greater than $10,000 but less than or 
equal to $25,000
		$375
	
108.13
108.14	greater than $25,000 but less than or 
equal to $50,000
		$500
	
108.15
108.16	greater than $50,000 but less than or 
equal to $100,000
		$625
	
108.17
108.18	greater than $100,000 but less than or 
equal to $150,000
		$750
	
108.19
108.20	greater than $150,000 but less than or 
equal to $200,000
		$1,000
	
108.21
108.22	greater than $200,000 but less than or 
equal to $250,000
		$1,250
	
108.23
108.24	greater than $250,000 but less than or 
equal to $300,000
		$1,500
	
108.25
108.26	greater than $300,000 but less than or 
equal to $350,000
		$1,750
	
108.27
108.28	greater than $350,000 but less than or 
equal to $400,000
		$2,000
	
108.29
108.30	greater than $400,000 but less than or 
equal to $450,000
		$2,250
	
108.31
108.32	greater than $450,000 but less than or 
equal to $500,000
		$2,500
	
108.33
108.34	greater than $500,000 but less than or 
equal to $600,000
		$2,850
	
108.35
108.36	greater than $600,000 but less than or 
equal to $700,000
		$3,200
	
108.37
108.38	greater than $700,000 but less than or 
equal to $800,000
		$3,600
	
108.39
108.40	greater than $800,000 but less than or 
equal to $900,000
		$3,900
	
108.41
108.42	greater than $900,000 but less than or 
equal to $1,000,000
		$4,250
	
109.1
109.2	greater than $1,000,000 but less than or 
equal to $1,250,000
		$4,550
	
109.3
109.4	greater than $1,250,000 but less than or 
equal to $1,500,000
		$4,900
	
109.5
109.6	greater than $1,500,000 but less than or 
equal to $1,750,000
		$5,200
	
109.7
109.8	greater than $1,750,000 but less than or 
equal to $2,000,000
		$5,500
	
109.9109.10
	greater than $2,000,000 but less than or 
equal to $2,500,000
		$5,900
	
109.11
109.12	greater than $2,500,000 but less than or 
equal to $3,000,000
		$6,200
	
109.13
109.14	greater than $3,000,000 but less than or 
equal to $3,500,000
		$6,500
	
109.15
109.16	greater than $3,500,000 but less than or 
equal to $4,000,000
		$7,200
	
109.17
109.18	greater than $4,000,000 but less than or 
equal to $4,500,000
		$7,800
	
109.19
109.20	greater than $4,500,000 but less than or 
equal to $5,000,000
		$9,000
	
109.21
109.22	greater than $5,000,000 but less than or 
equal to $7,500,000
		$10,000
	
109.23
109.24	greater than $7,500,000 but less than or 
equal to $10,000,000
		$14,000
	
109.25
109.26	greater than $10,000,000 but less than or 
equal to $12,500,000
		$18,000
	
109.27
109.28	greater than $12,500,000 but less than or 
equal to $15,000,000
		$25,000
	
109.29
109.30	greater than $15,000,000 but less than or 
equal to $17,500,000
		$28,000
	
109.31
109.32	greater than $17,500,000 but less than or 
equal to $20,000,000
		$32,000
	
109.33
109.34	greater than $20,000,000 but less than or 
equal to $25,000,000
		$36,000
	
109.35
109.36	greater than $25,000,000 but less than or 
equal to $30,000,000
		$45,000
	
109.37
109.38	greater than $30,000,000 but less than or 
equal to $35,000,000
		$55,000
	
109.39	greater than $35,000,000
		$75,000
	
109.40 	(2) If requested, the license holder shall provide the commissioner information to verify 
109.41 	the license holder's annual revenues or other information as needed, including copies of 
109.42 	documents submitted to the Department of Revenue.
110.1 	(3) At each annual renewal, a license holder may elect to pay the highest renewal fee, 
110.2 	and not provide annual revenue information to the commissioner.
110.3 	(4) A license holder that knowingly provides the commissioner incorrect revenue amounts 
110.4 	for the purpose of paying a lower license fee shall be subject to a civil penalty in the amount 
110.5 	of double the fee the provider should have paid.
110.6 	(b) A substance use disorder treatment program licensed under chapter 245G, to provide 
110.7 	substance use disorder treatment shall pay an annual nonrefundable license fee based on 
110.8 	the following schedule:

110.9		Licensed Capacity
	License Fee
	
110.10		1 to 24 persons
	$2,600
	
110.11		25 to 49 persons
	$3,000
	
110.12		50 to 74 persons
	$5,000
	
110.13		75 to 99 persons
	$10,000
	
110.14		100  to 199 persons
	$15,000
	
110.15		200 or more persons
	$20,000
	
110.16 	(c) A detoxification program licensed under Minnesota Rules, parts 9530.6510 to 
110.17 	9530.6590, or a withdrawal management program licensed under chapter 245F shall pay 
110.18 	an annual nonrefundable license fee based on the following schedule:

110.19		Licensed Capacity
	License Fee
	
110.20		1 to 24 persons
	$2,600
	
110.21		25 to 49 persons
	$3,000
	
110.22		50 or more persons
	$5,000
	
110.23 	A detoxification program that also operates a withdrawal management program at the same 
110.24 	location shall only pay one fee based upon the licensed capacity of the program with the 
110.25 	higher overall capacity.
110.26 	(d) A children's residential facility licensed under Minnesota Rules, chapter 2960, to 
110.27 	serve children shall pay an annual nonrefundable license fee based on the following schedule:

110.28		Licensed Capacity
	License Fee
	
110.29		1 to 24 persons
	$1,000
	
110.30		25 to 49 persons
	$1,100
	
110.31		50 to 74 persons
	$1,200
	
110.32		75 to 99 persons
	$1,300
	
110.33		100 or more persons
	$1,400
	
111.1 	(e) A residential facility licensed under section 245I.23 or Minnesota Rules, parts 
111.2 	9520.0500 to 9520.0670, to serve persons with mental illness shall pay an annual 
111.3 	nonrefundable license fee based on the following schedule:

111.4		Licensed Capacity
	License Fee
	
111.5		1 to 24 persons
	$2,600
	
111.6		25  to 49 persons
	$3,000
	
111.7		50 or more persons
	$20,000
	
111.8 	(f) A residential facility licensed under Minnesota Rules, parts 9570.2000 to 9570.3400, 
111.9 	to serve persons with physical disabilities shall pay an annual nonrefundable license fee 
111.10 	based on the following schedule:

111.11		Licensed Capacity
	License Fee
	
111.12		1 to 24 persons
	$450
	
111.13		25 to 49 persons
	$650
	
111.14		50 to 74 persons
	$850
	
111.15		75 to 99 persons
	$1,050
	
111.16		100 or more persons
	$1,250
	
111.17 	(g) A program licensed as an adult day care center licensed under Minnesota Rules, 
111.18 	parts 9555.9600 to 9555.9730, shall pay an annual nonrefundable license fee based on the 
111.19 	following schedule:

111.20		Licensed Capacity
	License Fee
	
111.21		1 to 24 persons
	$2,600
	
111.22		25 to 49 persons
	$3,000
	
111.23		50 to 74 persons
	$5,000
	
111.24		75 to 99 persons
	$10,000
	
111.25		100  to 199 persons
	$15,000
	
111.26		200 or more persons
	$20,000
	
111.27 	(h) A program licensed to provide treatment services to persons with sexual psychopathic 
111.28 	personalities or sexually dangerous persons under Minnesota Rules, parts 9515.3000 to 
111.29 	9515.3110, shall pay an annual nonrefundable license fee of $20,000.
111.30 	(i) A mental health clinic certified under section 245I.20 shall pay an annual 
111.31 	nonrefundable certification fee of $1,550. If the mental health clinic provides services at a 
111.32 	primary location with satellite facilities, the satellite facilities shall be certified with the 
111.33 	primary location without an additional charge.
112.1 	(j) If a program subject to annual fees under paragraph (b) provides services at a primary 
112.2 	location with satellite facilities, the satellite facilities must be licensed with the primary 
112.3 	location and must be subject to an additional $500 annual nonrefundable license fee per 
112.4 	satellite facility.

112.5 	Sec. 11. Minnesota Statutes 2025 Supplement, section 245A.142, subdivision 3, is amended 
112.6 	to read:
112.7 		Subd. 3.Provisional license. (a) Beginning January 1, 2026, the commissioner shall 
112.8 	begin issuing provisional licenses to agencies enrolled under chapter 256B to provide EIDBI 
112.9 	services.
112.10 	(b) Agencies enrolled before July 1, 2025, have until May 31, 2026, to submit an 
112.11 	application for provisional licensure on the forms and in the manner prescribed by the 
112.12 	commissioner.
112.13 	(c) Beginning June 1, 2026, an agency must not operate if it has not submitted an 
112.14 	application for provisional licensure under this section. The commissioner shall disenroll 
112.15 	an agency from providing EIDBI services under chapter 256B if the agency fails to submit 
112.16 	an application for provisional licensure by May 31, 2026.
112.17 	(d) The commissioner must determine whether a provisional license applicant complies 
112.18 	with all applicable rules and laws and either issue a provisional license to the applicant or 
112.19 	deny the application by December 31, 2026.
112.20 	(e) A provisional license is effective until comprehensive EIDBI agency licensure 
112.21 	standards are in effect unless the provisional license is suspended or revoked.
112.22 	(f) Initial provisional license applications are subject to the $2,100 application fee under 
112.23 	section 245A.10, subdivision 3.

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

112.25 	Sec. 12. Minnesota Statutes 2025 Supplement, section 245A.242, subdivision 2, is amended 
112.26 	to read:
112.27 		Subd. 2.Emergency overdose treatment. (a) A license holder must maintain a supply 
112.28 	of opiate antagonists as defined in section 604A.04, subdivision 1, available for emergency 
112.29 	treatment of opioid overdose and. For administration via intramuscular injection, a license 
112.30 	holder must have a written standing order protocol by a physician who is licensed under 
112.31 	chapter 147, advanced practice registered nurse who is licensed under chapter 148, or 
112.32 	physician assistant who is licensed under chapter 147A, that permits the license holder to 
113.1 	maintain a supply of intramuscular injection opiate antagonists on site. A license holder 
113.2 	must require staff to undergo training in the specific mode of administration used at the 
113.3 	program, which may include intranasal administration, intramuscular injection, or both, 
113.4 	before the staff has direct contact, as defined in section 245C.02, subdivision 11, with a 
113.5 	person served by the program.
113.6 	(b) Notwithstanding any requirements to the contrary in Minnesota Rules, chapters 2960
113.7 	and 9530, and Minnesota Statutes, chapters 245F, 245G, and 245I:
113.8 	(1) emergency opiate antagonist medications are not required to be stored in a locked 
113.9 	area and staff and adult clients may carry this medication on them and store it in an unlocked 
113.10 	location;
113.11 	(2) staff persons who only administer emergency opiate antagonist medications only 
113.12 	require the training required by paragraph (a), which any knowledgeable trainer may provide. 
113.13 	The trainer is not required to be a registered nurse or part of an accredited educational 
113.14 	institution; and
113.15 	(3) nonresidential substance use disorder treatment programs that do not administer 
113.16 	client medications beyond emergency opiate antagonist medications are not required to 
113.17 	have the policies and procedures required in section 245G.08, subdivisions 5 and 6, and 
113.18 	must instead describe the program's procedures for administering opiate antagonist 
113.19 	medications in the license holder's description of health care services under section 245G.08, 
113.20 	subdivision 1.

113.21 	Sec. 13. Minnesota Statutes 2024, section 245C.02, subdivision 18, is amended to read:
113.22 		Subd. 18.Serious maltreatment. (a) "Serious maltreatment" means sexual abuse, 
113.23 	maltreatment resulting in death, neglect resulting in serious injury which reasonably requires 
113.24 	the care of a physician, advanced practice registered nurse, or physician assistant whether 
113.25 	or not the care of a physician, advanced practice registered nurse, or physician assistant was 
113.26 	sought, or abuse resulting in serious injury, or financial exploitation of a vulnerable adult 
113.27 	if the value of the funds or property is $1,000 or greater.
113.28 	(b) For purposes of this definition, "care of a physician, advanced practice registered 
113.29 	nurse, or physician assistant" is treatment received or ordered by a physician, physician 
113.30 	assistant, or advanced practice registered nurse, but does not include:
113.31 	(1) diagnostic testing, assessment, or observation;
113.32 	(2) the application of, recommendation to use, or prescription solely for a remedy that 
113.33 	is available over the counter without a prescription; or
114.1 	(3) a prescription solely for a topical antibiotic to treat burns when there is no follow-up 
114.2 	appointment.
114.3 	(c) For purposes of this definition, "abuse resulting in serious injury" means: bruises, 
114.4 	bites, skin laceration, or tissue damage; fractures; dislocations; evidence of internal injuries; 
114.5 	head injuries with loss of consciousness; extensive second-degree or third-degree burns and 
114.6 	other burns for which complications are present; extensive second-degree or third-degree 
114.7 	frostbite and other frostbite for which complications are present; irreversible mobility or 
114.8 	avulsion of teeth; injuries to the eyes; ingestion of foreign substances and objects that are 
114.9 	harmful; near drowning; and heat exhaustion or sunstroke.
114.10 	(d) Serious maltreatment includes neglect when it results in criminal sexual conduct 
114.11 	against a child or vulnerable adult.

114.12 	Sec. 14. Minnesota Statutes 2024, section 245C.03, subdivision 1, is amended to read:
114.13 		Subdivision 1. Programs licensed by the commissioner. (a) The commissioner shall 
114.14 	conduct a background study on:
114.15 	(1) the person or persons applying for a license;
114.16 	(2) an individual age 13 and over living in the household where the licensed program 
114.17 	will be provided who is not receiving licensed services from the program;
114.18 	(3) current or prospective employees of the applicant or license holder who will have 
114.19 	direct contact with persons served by the facility, agency, or program;
114.20 	(4) volunteers or student volunteers who will have direct contact with persons served 
114.21 	by the program to provide program services if the contact is not under the continuous, direct 
114.22 	supervision by an individual listed in clause (1) or (3);
114.23 	(5) an individual age ten to 12 living in the household where the licensed services will 
114.24 	be provided when the commissioner has reasonable cause as defined in section 245C.02, 
114.25 	subdivision 15;
114.26 	(6) an individual who, without providing direct contact services at a licensed program, 
114.27 	may have unsupervised access to children or vulnerable adults receiving services from a 
114.28 	program, when the commissioner has reasonable cause as defined in section 245C.02, 
114.29 	subdivision 15; and
114.30 	(7) all controlling individuals as defined in section 245A.02, subdivision 5a;
115.1 	(8) notwithstanding clause (3), for children's residential facilities and foster residence 
115.2 	settings, any adult working in the facility, whether or not the individual will have direct 
115.3 	contact with persons served by the facility.
115.4 	(b) For child foster care when the license holder resides in the home where foster care 
115.5 	services are provided, a short-term substitute caregiver providing direct contact services for 
115.6 	a child for less than 72 hours of continuous care is not required to receive a background 
115.7 	study under this chapter.
115.8 	(c) This subdivision applies to the following programs that must be licensed under 
115.9 	chapter 245A:
115.10 	(1) adult foster care;
115.11 	(2) children's residential facilities;
115.12 	(3) licensed home and community-based services under chapter 245D;
115.13 	(4) residential mental health programs for adults;
115.14 	(5) substance use disorder treatment programs under chapter 245G;
115.15 	(6) withdrawal management programs under chapter 245F;
115.16 	(7) adult day care centers;
115.17 	(8) family adult day services;
115.18 	(9) detoxification programs;
115.19 	(10) community residential settings;
115.20 	(11) intensive residential treatment services and residential crisis stabilization under 
115.21 	chapter 245I; and
115.22 	(12) treatment programs for persons with sexual psychopathic personality or sexually 
115.23 	dangerous persons, licensed under chapter 245A and according to Minnesota Rules, parts 
115.24 	9515.3000 to 9515.3110.; and
115.25 	(13) children's foster residence settings.

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

115.27 	Sec. 15. Minnesota Statutes 2024, section 245C.04, subdivision 1, is amended to read:
115.28 		Subdivision 1.Licensed programs; other child care programs. (a) The commissioner 
115.29 	shall conduct a background study of an individual required to be studied under section 
115.30 	245C.03, subdivision 1, at least upon application for initial license for all license types.
116.1 	(b) The commissioner shall conduct a background study of an individual required to be 
116.2 	studied under section 245C.03, subdivision 1, including a child care background study 
116.3 	subject as defined in section 245C.02, subdivision 6a, in a family child care program, licensed 
116.4 	child care center, certified license-exempt child care center, or legal nonlicensed child care 
116.5 	provider, on a schedule determined by the commissioner. Except as provided in section 
116.6 	245C.05, subdivision 5a, a child care background study must include submission of 
116.7 	fingerprints for a national criminal history record check and a review of the information 
116.8 	under section 245C.08. A background study for a child care program must be repeated 
116.9 	within five years from the most recent study conducted under this paragraph.
116.10 	(c) At reauthorization or when a new background study is needed under section 142E.16, 
116.11 	subdivision 2, for a legal nonlicensed child care provider authorized under chapter 142E:
116.12 	(1) for a background study affiliated with a legal nonlicensed child care provider, the 
116.13 	individual shall provide information required under section 245C.05, subdivision 1, 
116.14 	paragraphs (a), (b), and (d), to the commissioner and be fingerprinted and photographed 
116.15 	under section 245C.05, subdivision 5; and
116.16 	(2) the commissioner shall verify the information received under clause (1) and submit 
116.17 	the request in NETStudy 2.0 to complete the background study.
116.18 	(d) At reapplication for a family child care license:
116.19 	(1) for a background study affiliated with a licensed family child care center, the 
116.20 	individual shall provide information required under section 245C.05, subdivision 1, 
116.21 	paragraphs (a), (b), and (d), to the county agency, and be fingerprinted and photographed 
116.22 	under section 245C.05, subdivision 5;
116.23 	(2) the county agency shall verify the information received under clause (1) and forward 
116.24 	the information to the commissioner and submit the request in NETStudy 2.0 to complete 
116.25 	the background study; and
116.26 	(3) the background study conducted by the commissioner under this paragraph must 
116.27 	include a review of the information required under section 245C.08.
116.28 	(e) The commissioner is not required to conduct a study of an individual at the time of 
116.29 	reapplication for a license if the individual's background study was completed by the 
116.30 	commissioner of human services and the following conditions are met:
116.31 	(1) a study of the individual was conducted either at the time of initial licensure or when 
116.32 	the individual became affiliated with the license holder;
117.1 	(2) the individual has been continuously affiliated with the license holder since the last 
117.2 	study was conducted; and
117.3 	(3) the last study of the individual was conducted on or after October 1, 1995.
117.4 	(f) (e) The commissioner of human services shall conduct a background study of an 
117.5 	individual specified under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6), 
117.6 	who is newly affiliated with a child foster family setting license holder:
117.7 	(1) the county or private agency shall collect and forward to the commissioner the 
117.8 	information required under section 245C.05, subdivisions 1 and 5, when the child foster 
117.9 	family setting applicant or license holder resides in the home where child foster care services 
117.10 	are provided; and
117.11 	(2) the background study conducted by the commissioner of human services under this 
117.12 	paragraph must include a review of the information required under section 245C.08, 
117.13 	subdivisions 1, 3, and 4.
117.14 	(g) (f) The commissioner shall conduct a background study of an individual specified 
117.15 	under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6), who is newly affiliated 
117.16 	with an adult foster care or family adult day services and with a family child care license 
117.17 	holder or a legal nonlicensed child care provider authorized under chapter 142E and:
117.18 	(1) except as provided in section 245C.05, subdivision 5a, the county shall collect and 
117.19 	forward to the commissioner the information required under section 245C.05, subdivision 
117.20 	1, paragraphs (a) and (b), and subdivision 5, paragraph (b), for background studies conducted 
117.21 	by the commissioner for all family adult day services, for adult foster care when the adult 
117.22 	foster care license holder resides in the adult foster care residence, and for family child care 
117.23 	and legal nonlicensed child care authorized under chapter 142E;
117.24 	(2) the license holder shall collect and forward to the commissioner the information 
117.25 	required under section 245C.05, subdivisions 1, paragraphs (a) and (b); and 5, paragraphs 
117.26 	(a) and (b), for background studies conducted by the commissioner for adult foster care 
117.27 	when the license holder does not reside in the adult foster care residence; and
117.28 	(3) the background study conducted by the commissioner under this paragraph must 
117.29 	include a review of the information required under section 245C.08, subdivision 1, paragraph 
117.30 	(a), and subdivisions 3 and 4.
117.31 	(h) (g) Applicants for licensure, license holders, and other entities as provided in this 
117.32 	chapter must submit completed background study requests to the commissioner using the 
118.1 	electronic system known as NETStudy 2.0 before individuals specified in section 245C.03, 
118.2 	subdivision 1, begin positions allowing direct contact in any licensed program.
118.3 	(i) (h) For an individual who is not on the entity's active roster, the entity must initiate 
118.4 	a new background study through NETStudy when:
118.5 	(1) an individual returns to a position requiring a background study following an absence 
118.6 	of 120 or more consecutive days; or
118.7 	(2) a program that discontinued providing licensed direct contact services for 120 or 
118.8 	more consecutive days begins to provide direct contact licensed services again.
118.9 	The license holder shall maintain a copy of the notification provided to the commissioner 
118.10 	under this paragraph in the program's files. If the individual's disqualification was previously 
118.11 	set aside for the license holder's program and the new background study results in no new 
118.12 	information that indicates the individual may pose a risk of harm to persons receiving 
118.13 	services from the license holder, the previous set-aside shall remain in effect.
118.14 	(j) (i) For purposes of this section, a physician licensed under chapter 147, advanced 
118.15 	practice registered nurse licensed under chapter 148, or physician assistant licensed under 
118.16 	chapter 147A is considered to be continuously affiliated upon the license holder's receipt 
118.17 	from the commissioner of health or human services of the physician's, advanced practice 
118.18 	registered nurse's, or physician assistant's background study results.
118.19 	(k) (j) For purposes of family child care, a substitute caregiver must receive repeat 
118.20 	background studies at the time of each license renewal.
118.21 	(l) (k) A repeat background study at the time of license renewal is not required if the 
118.22 	family child care substitute caregiver's background study was completed by the commissioner 
118.23 	on or after October 1, 2017, and the substitute caregiver is on the license holder's active 
118.24 	roster in NETStudy 2.0.
118.25 	(m) (l) Before and after school programs authorized under chapter 142E, are exempt 
118.26 	from the background study requirements under section 123B.03, for an employee for whom 
118.27 	a background study under this chapter has been completed.

118.28 	Sec. 16. Minnesota Statutes 2025 Supplement, section 245C.07, is amended to read:
118.29 	245C.07 STUDY SUBJECT AFFILIATED WITH MULTIPLE FACILITIES.
118.30 	(a) Subject to the conditions in paragraph (d), when a license holder, applicant, or other 
118.31 	entity owns multiple programs or services that are licensed by the Department of Human 
118.32 	Services; Department of Children, Youth, and Families; Department of Health; or Department 
119.1 	of Corrections, only one background study is required for an individual who provides direct 
119.2 	contact services in one or more of the licensed programs or services if:
119.3 	(1) the license holder designates one individual with one address and telephone number 
119.4 	as the person to receive sensitive background study information for the multiple licensed 
119.5 	programs or services that depend on the same background study; and
119.6 	(2) the individual designated to receive the sensitive background study information is 
119.7 	capable of determining, upon request of the department, whether a background study subject 
119.8 	is providing direct contact services in one or more of the license holder's programs or services 
119.9 	and, if so, at which location or locations.
119.10 	(b) When a license holder maintains background study compliance for multiple licensed 
119.11 	programs according to paragraph (a), and one or more of the licensed programs closes, the 
119.12 	license holder shall immediately notify the commissioner which staff must be transferred 
119.13 	to an active license so that the background studies can be electronically paired with the 
119.14 	license holder's active program.
119.15 	(c) When a background study is being initiated by a licensed program or service or a 
119.16 	foster care provider that is also licensed under chapter 144G, a study subject affiliated with 
119.17 	multiple licensed programs or services may attach to the background study form a cover 
119.18 	letter indicating the additional names of the programs or services, addresses, and background 
119.19 	study identification numbers.
119.20 	When the commissioner receives a notice, the commissioner shall notify each program 
119.21 	or service identified by the background study subject of the study results.
119.22 	The background study notice the commissioner sends to the subsequent agencies shall 
119.23 	satisfy those programs' or services' responsibilities for initiating a background study on that 
119.24 	individual.
119.25 	(d) If a background study was conducted on an individual related to child foster care 
119.26 	and the requirements under paragraph (a) are met, the background study is transferable 
119.27 	across all licensed programs. If a background study was conducted on an individual under 
119.28 	a license other than child foster care and the requirements under paragraph (a) are met, the 
119.29 	background study is transferable to all licensed programs except child foster care.
119.30 	(e) The provisions of this section that allow a single background study in one or more 
119.31 	licensed programs or services do not apply to background studies submitted by adoption 
119.32 	agencies, supplemental nursing services agencies, personnel pool agencies, educational 
120.1 	programs, professional services agencies, temporary personnel agencies, and unlicensed 
120.2 	personal care provider organizations.
120.3 	(f) For an entity operating under NETStudy 2.0, the entity's active roster must be the 
120.4 	system used to document when a background study subject is affiliated with multiple entities. 
120.5 	For a background study to be transferable:
120.6 	(1) the background study subject must be on and moving to a roster for which the person 
120.7 	designated to receive sensitive background study information is the same; and
120.8 	(2) the same entity must own or legally control both the roster from which the transfer 
120.9 	is occurring and the roster to which the transfer is occurring. For an entity that holds or 
120.10 	controls multiple licenses, or unlicensed personal care provider organizations, there must 
120.11 	be a common highest level entity that has a legally identifiable structure that can be verified 
120.12 	through records available from the secretary of state.

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

120.14 	Sec. 17. Minnesota Statutes 2025 Supplement, section 245C.13, subdivision 2, is amended 
120.15 	to read:
120.16 		Subd. 2.Activities pending completion of background study. The subject of a 
120.17 	background study may not perform any activity requiring a background study under 
120.18 	paragraph (c) until the commissioner has issued one of the notices under paragraph (a).
120.19 	(a) Notices from the commissioner required prior to activity under paragraph (c) include:
120.20 	(1) a notice of the study results under section 245C.17 stating that:
120.21 	(i) the individual is not disqualified; or
120.22 	(ii) more time is needed to complete the study but the individual is not required to be 
120.23 	removed from direct contact or access to people receiving services prior to completion of 
120.24 	the study as provided under section 245C.17, subdivision 1, paragraph (b) or (c). The notice 
120.25 	that more time is needed to complete the study must also indicate whether the individual is 
120.26 	required to be under continuous direct supervision prior to completion of the background 
120.27 	study. When more time is necessary to complete a background study of an individual 
120.28 	affiliated with a Title IV-E eligible children's residential facility or foster residence setting, 
120.29 	the individual may not work in the facility or setting regardless of whether or not the 
120.30 	individual is supervised;
120.31 	(2) a notice that a disqualification has been set aside under section 245C.23; or
121.1 	(3) a notice that a variance has been granted related to the individual under section 
121.2 	245C.30.
121.3 	(b) For a child care background study affiliated with a licensed child care center or 
121.4 	certified license-exempt child care center subject required to submit fingerprints for a 
121.5 	national criminal history check, except as provided in section 245C.05, subdivision 5a, the 
121.6 	notice sent under paragraph (a), clause (1), item (ii), must not be issued until the 
121.7 	commissioner receives a qualifying result for the individual for the fingerprint-based national 
121.8 	criminal history record check or the fingerprint-based criminal history information from 
121.9 	the Bureau of Criminal Apprehension. The notice must require the individual to be under 
121.10 	continuous direct supervision prior to completion of the remainder of the background study 
121.11 	except as permitted in subdivision 3.
121.12 	(c) Activities prohibited prior to receipt of notice under paragraph (a) include:
121.13 	(1) being issued a license;
121.14 	(2) living in the household where the licensed program will be provided;
121.15 	(3) providing direct contact services to persons served by a program unless the subject 
121.16 	is under continuous direct supervision;
121.17 	(4) having access to persons receiving services if the background study was completed 
121.18 	under section 144.057, subdivision 1, or 245C.03, subdivision 1, paragraph (a), clause (2), 
121.19 	(5), or (6), unless the subject is under continuous direct supervision;
121.20 	(5) for licensed child care centers and certified license-exempt child care centers a child 
121.21 	care background study subject, providing direct contact services to persons served by the 
121.22 	program performing any act listed in section 245C.02, subdivision 6a, unless the study is 
121.23 	being renewed under section 245C.04, subdivision 1, paragraph (b), and it has been less 
121.24 	than five years since the child care background study subject was previously disqualified 
121.25 	or provided notice under paragraph (a), clause (1), item (i);
121.26 	(6) for children's residential facilities or foster residence settings, working in the facility 
121.27 	or setting;
121.28 	(7) for background studies affiliated with a personal care provider organization, except 
121.29 	as provided in section 245C.03, subdivision 3b, before a personal care assistant provides 
121.30 	services, the personal care assistance provider agency must initiate a background study of 
121.31 	the personal care assistant under this chapter and the personal care assistance provider 
121.32 	agency must have received a notice from the commissioner that the personal care assistant 
121.33 	is:
122.1 	(i) not disqualified under section 245C.14; or
122.2 	(ii) disqualified, but the personal care assistant has received a set aside of the 
122.3 	disqualification under section 245C.22; or
122.4 	(8) for background studies affiliated with an early intensive developmental and behavioral 
122.5 	intervention provider, before an individual provides services, the early intensive 
122.6 	developmental and behavioral intervention provider must initiate a background study for 
122.7 	the individual under this chapter and the early intensive developmental and behavioral 
122.8 	intervention provider must have received a notice from the commissioner that the individual 
122.9 	is:
122.10 	(i) not disqualified under section 245C.14; or
122.11 	(ii) disqualified, but the individual has received a set-aside of the disqualification under 
122.12 	section 245C.22.

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

122.14 	Sec. 18. Minnesota Statutes 2024, section 245C.15, subdivision 2, is amended to read:
122.15 		Subd. 2.15-year disqualification. (a) An individual is disqualified under section 245C.14 
122.16 	if: (1) less than 15 years have passed since the discharge of the sentence imposed, if any, 
122.17 	for the offense; and (2) the individual has committed a felony-level violation of any of the 
122.18 	following offenses: sections 152.021, subdivision 1 or 2b, (aggravated controlled substance 
122.19 	crime in the first degree; sale crimes); 152.022, subdivision 1 (controlled substance crime 
122.20 	in the second degree; sale crimes); 152.023, subdivision 1 (controlled substance crime in 
122.21 	the third degree; sale crimes); 152.024, subdivision 1 (controlled substance crime in the 
122.22 	fourth degree; sale crimes); 256.98 (wrongfully obtaining assistance); 268.182 (fraud); 
122.23 	393.07, subdivision 10, paragraph (c) (federal SNAP fraud); 518B.01, subdivision 14 
122.24 	(violation of an order for protection); 609.165 (felon ineligible to possess firearm); 609.2112, 
122.25 	609.2113, or 609.2114 (criminal vehicular homicide or injury); 609.215 (suicide); 609.223 
122.26 	or 609.2231 (assault in the third or fourth degree); repeat offenses under 609.224 (assault 
122.27 	in the fifth degree); 609.229 (crimes committed for benefit of a gang); 609.2325 (criminal 
122.28 	abuse of a vulnerable adult); 609.2334 (violation of an order for protection against financial 
122.29 	exploitation of a vulnerable adult); 609.2335 (financial exploitation of a vulnerable adult); 
122.30 	609.235 (use of drugs to injure or facilitate crime); 609.24 (simple robbery); 609.247, 
122.31 	subdivision 4 (carjacking in the third degree); 609.255 (false imprisonment); 609.2664
122.32 	(manslaughter of an unborn child in the first degree); 609.2665 (manslaughter of an unborn 
122.33 	child in the second degree); 609.267 (assault of an unborn child in the first degree); 609.2671
123.1 	(assault of an unborn child in the second degree); 609.268 (injury or death of an unborn 
123.2 	child in the commission of a crime); 609.27 (coercion); 609.275 (attempt to coerce); 609.466
123.3 	(medical assistance fraud); 609.495 (aiding an offender); 609.498, subdivision 1 or 1b 
123.4 	(aggravated first-degree or first-degree tampering with a witness); 609.52 (theft); 609.521
123.5 	(possession of shoplifting gear); 609.522 (organized retail theft); 609.525 (bringing stolen 
123.6 	goods into Minnesota); 609.527 (identity theft); 609.53 (receiving stolen property); 609.535
123.7 	(issuance of dishonored checks); 609.542 (illegal remunerations); 609.562 (arson in the 
123.8 	second degree); 609.563 (arson in the third degree); 609.582 (burglary); 609.59 (possession 
123.9 	of burglary tools); 609.611 (insurance fraud); 609.625 (aggravated forgery); 609.63 (forgery); 
123.10 	609.631 (check forgery; offering a forged check); 609.635 (obtaining signature by false 
123.11 	pretense); 609.66 (dangerous weapons); 609.67 (machine guns and short-barreled shotguns); 
123.12 	609.687 (adulteration); 609.71 (riot); 609.713 (terroristic threats); 609.746 (interference 
123.13 	with privacy); 609.82 (fraud in obtaining credit); 609.821 (financial transaction card fraud); 
123.14 	617.23 (indecent exposure), not involving a minor; repeat offenses under 617.241 (obscene 
123.15 	materials and performances; distribution and exhibition prohibited; penalty); or 624.713
123.16 	(certain persons not to possess firearms).
123.17 	(b) An individual is disqualified under section 245C.14 if less than 15 years has passed 
123.18 	since the individual's aiding and abetting, attempt, or conspiracy to commit any of the 
123.19 	offenses listed in paragraph (a), as each of these offenses is defined in Minnesota Statutes.
123.20 	(c) An individual is disqualified under section 245C.14 if less than 15 years has passed 
123.21 	since the termination of the individual's parental rights under section 260C.301, subdivision 
123.22 	1, paragraph (b), or subdivision 3.
123.23 	(d) An individual is disqualified under section 245C.14 if less than 15 years has passed 
123.24 	since the discharge of the sentence imposed for an offense in any other state or country, the 
123.25 	elements of which are substantially similar to the elements of the offenses listed in paragraph 
123.26 	(a) or since the termination of parental rights in any other state or country, the elements of 
123.27 	which are substantially similar to the elements listed in paragraph (c).
123.28 	(e) If the individual studied commits one of the offenses listed in paragraph (a), but the 
123.29 	sentence or level of offense is a gross misdemeanor or misdemeanor, the individual is 
123.30 	disqualified but the disqualification look-back period for the offense is the period applicable 
123.31 	to the gross misdemeanor or misdemeanor disposition.
123.32 	(f) When a disqualification is based on a judicial determination other than a conviction, 
123.33 	the disqualification period begins from the date of the court order. When a disqualification 
123.34 	is based on an admission, the disqualification period begins from the date of an admission 
124.1 	in court. When a disqualification is based on an Alford Plea, the disqualification period 
124.2 	begins from the date the Alford Plea is entered in court. When a disqualification is based 
124.3 	on a preponderance of evidence of a disqualifying act, the disqualification date begins from 
124.4 	the date of the dismissal, the date of discharge of the sentence imposed for a conviction for 
124.5 	a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.

124.6 	Sec. 19. Minnesota Statutes 2024, section 245C.15, subdivision 3, is amended to read:
124.7 		Subd. 3.Ten-year disqualification. (a) An individual is disqualified under section 
124.8 	245C.14 if: (1) less than ten years have passed since the discharge of the sentence imposed, 
124.9 	if any, for the offense; and (2) the individual has committed a gross misdemeanor-level 
124.10 	violation of any of the following offenses: sections 256.98 (wrongfully obtaining assistance); 
124.11 	260B.425 (criminal jurisdiction for contributing to status as a juvenile petty offender or 
124.12 	delinquency); 260C.425 (criminal jurisdiction for contributing to need for protection or 
124.13 	services); 268.182 (fraud); 393.07, subdivision 10, paragraph (c) (federal SNAP fraud); 
124.14 	609.2112, 609.2113, or 609.2114 (criminal vehicular homicide or injury); 609.221 or 609.222 
124.15 	(assault in the first or second degree); 609.223 or 609.2231 (assault in the third or fourth 
124.16 	degree); 609.224 (assault in the fifth degree); 609.224, subdivision 2, paragraph (c) (assault 
124.17 	in the fifth degree by a caregiver against a vulnerable adult); 609.2242 and 609.2243 
124.18 	(domestic assault); 609.23 (mistreatment of persons confined); 609.231 (mistreatment of 
124.19 	residents or patients); 609.2325 (criminal abuse of a vulnerable adult); 609.233 (criminal 
124.20 	neglect of a vulnerable adult); 609.2334 (violation of an order for protection against financial 
124.21 	exploitation of a vulnerable adult); 609.2335 (financial exploitation of a vulnerable adult); 
124.22 	609.234 (failure to report maltreatment of a vulnerable adult); 609.265 (abduction); 609.275 
124.23 	(attempt to coerce); 609.324, subdivision 1a (other prohibited acts; minor engaged in 
124.24 	prostitution); 609.33 (disorderly house); 609.377 (malicious punishment of a child); 609.378 
124.25 	(neglect or endangerment of a child); 609.466 (medical assistance fraud); 609.52 (theft); 
124.26 	609.522 (organized retail theft); 609.525 (bringing stolen goods into Minnesota); 609.527 
124.27 	(identity theft); 609.53 (receiving stolen property); 609.535 (issuance of dishonored checks); 
124.28 	609.582 (burglary); 609.59 (possession of burglary tools); 609.611 (insurance fraud); 609.631 
124.29 	(check forgery; offering a forged check); 609.66 (dangerous weapons); 609.71 (riot); 609.72, 
124.30 	subdivision 3 (disorderly conduct against a vulnerable adult); 609.746 (interference with 
124.31 	privacy); 609.749, subdivision 2 (harassment); 609.82 (fraud in obtaining credit); 609.821
124.32 	(financial transaction card fraud); 617.23 (indecent exposure), not involving a minor; 617.241
124.33 	(obscene materials and performances); 617.243 (indecent literature, distribution); 617.293
124.34 	(harmful materials; dissemination and display to minors prohibited); or Minnesota Statutes 
125.1 	2012, section 609.21; or violation of an order for protection under section 518B.01, 
125.2 	subdivision 14.
125.3 	(b) An individual is disqualified under section 245C.14 if less than ten years has passed 
125.4 	since the individual's aiding and abetting, attempt, or conspiracy to commit any of the 
125.5 	offenses listed in paragraph (a), as each of these offenses is defined in Minnesota Statutes.
125.6 	(c) An individual is disqualified under section 245C.14 if less than ten years has passed 
125.7 	since the discharge of the sentence imposed for an offense in any other state or country, the 
125.8 	elements of which are substantially similar to the elements of any of the offenses listed in 
125.9 	paragraph (a).
125.10 	(d) If the individual studied commits one of the offenses listed in paragraph (a), but the 
125.11 	sentence or level of offense is a misdemeanor disposition, the individual is disqualified but 
125.12 	the disqualification lookback period for the offense is the period applicable to misdemeanors.
125.13 	(e) When a disqualification is based on a judicial determination other than a conviction, 
125.14 	the disqualification period begins from the date of the court order. When a disqualification 
125.15 	is based on an admission, the disqualification period begins from the date of an admission 
125.16 	in court. When a disqualification is based on an Alford Plea, the disqualification period 
125.17 	begins from the date the Alford Plea is entered in court. When a disqualification is based 
125.18 	on a preponderance of evidence of a disqualifying act, the disqualification date begins from 
125.19 	the date of the dismissal, the date of discharge of the sentence imposed for a conviction for 
125.20 	a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.

125.21 	Sec. 20. Minnesota Statutes 2024, section 245C.15, subdivision 4, is amended to read:
125.22 		Subd. 4.Seven-year disqualification. (a) An individual is disqualified under section 
125.23 	245C.14 if: (1) less than seven years has passed since the discharge of the sentence imposed, 
125.24 	if any, for the offense; and (2) the individual has committed a misdemeanor-level violation 
125.25 	of any of the following offenses: sections 256.98 (wrongfully obtaining assistance); 260B.425 
125.26 	(criminal jurisdiction for contributing to status as a juvenile petty offender or delinquency); 
125.27 	260C.425 (criminal jurisdiction for contributing to need for protection or services); 268.182 
125.28 	(fraud); 393.07, subdivision 10, paragraph (c) (federal SNAP fraud); 609.2112, 609.2113, 
125.29 	or 609.2114 (criminal vehicular homicide or injury); 609.221 (assault in the first degree); 
125.30 	609.222 (assault in the second degree); 609.223 (assault in the third degree); 609.2231 
125.31 	(assault in the fourth degree); 609.224 (assault in the fifth degree); 609.2242 (domestic 
125.32 	assault); 609.2334 (violation of an order for protection against financial exploitation of a 
125.33 	vulnerable adult); 609.2335 (financial exploitation of a vulnerable adult); 609.234 (failure 
125.34 	to report maltreatment of a vulnerable adult); 609.2672 (assault of an unborn child in the 
126.1 	third degree); 609.27 (coercion); violation of an order for protection under 609.3232 
126.2 	(protective order authorized; procedures; penalties); 609.466 (medical assistance fraud); 
126.3 	609.52 (theft); 609.522 (organized retail theft); 609.525 (bringing stolen goods into 
126.4 	Minnesota); 609.527 (identity theft); 609.53 (receiving stolen property); 609.535 (issuance 
126.5 	of dishonored checks); 609.611 (insurance fraud); 609.66 (dangerous weapons); 609.665
126.6 	(spring guns); 609.746 (interference with privacy); 609.79 (obscene or harassing telephone 
126.7 	calls); 609.795 (letter, telegram, or package; opening; harassment); 609.82 (fraud in obtaining 
126.8 	credit); 609.821 (financial transaction card fraud); 617.23 (indecent exposure), not involving 
126.9 	a minor; 617.293 (harmful materials; dissemination and display to minors prohibited); or 
126.10 	Minnesota Statutes 2012, section 609.21; or violation of an order for protection under section 
126.11 	518B.01 (Domestic Abuse Act).
126.12 	(b) An individual is disqualified under section 245C.14 if less than seven years has 
126.13 	passed since a determination or disposition of the individual's:
126.14 	(1) failure to make required reports under section 260E.06 or 626.557, subdivision 3, 
126.15 	for incidents in which: (i) the final disposition under section 626.557 or chapter 260E was 
126.16 	substantiated maltreatment, and (ii) the maltreatment was recurring or serious; or
126.17 	(2) substantiated serious or recurring maltreatment of a minor under chapter 260E, a 
126.18 	vulnerable adult under section 626.557, or serious or recurring maltreatment in any other 
126.19 	state, the elements of which are substantially similar to the elements of maltreatment under 
126.20 	section 626.557 or chapter 260E for which: (i) there is a preponderance of evidence that 
126.21 	the maltreatment occurred, and (ii) the subject was responsible for the maltreatment.
126.22 	(c) An individual is disqualified under section 245C.14 if less than seven years has 
126.23 	passed since the individual's aiding and abetting, attempt, or conspiracy to commit any of 
126.24 	the offenses listed in paragraphs (a) and (b), as each of these offenses is defined in Minnesota 
126.25 	Statutes.
126.26 	(d) An individual is disqualified under section 245C.14 if less than seven years has 
126.27 	passed since the discharge of the sentence imposed for an offense in any other state or 
126.28 	country, the elements of which are substantially similar to the elements of any of the offenses 
126.29 	listed in paragraphs (a) and (b).
126.30 	(e) When a disqualification is based on a judicial determination other than a conviction, 
126.31 	the disqualification period begins from the date of the court order. When a disqualification 
126.32 	is based on an admission, the disqualification period begins from the date of an admission 
126.33 	in court. When a disqualification is based on an Alford Plea, the disqualification period 
126.34 	begins from the date the Alford Plea is entered in court. When a disqualification is based 
127.1 	on a preponderance of evidence of a disqualifying act, the disqualification date begins from 
127.2 	the date of the dismissal, the date of discharge of the sentence imposed for a conviction for 
127.3 	a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.
127.4 	(f) An individual is disqualified under section 245C.14 if less than seven years has passed 
127.5 	since the individual was disqualified under section 256.98, subdivision 8.

127.6 	Sec. 21. Minnesota Statutes 2025 Supplement, section 245C.15, subdivision 4a, is amended 
127.7 	to read:
127.8 		Subd. 4a.Licensed family foster setting disqualifications. (a) Notwithstanding 
127.9 	subdivisions 1 to 4, 4b, and 4c, for a background study affiliated with a licensed family 
127.10 	foster setting, regardless of how much time has passed, an individual is disqualified under 
127.11 	section 245C.14 if the individual committed an act that resulted in a felony-level conviction 
127.12 	for sections: 609.185 (murder in the first degree); 609.19 (murder in the second degree); 
127.13 	609.195 (murder in the third degree); 609.20 (manslaughter in the first degree); 609.205
127.14 	(manslaughter in the second degree); 609.2112 (criminal vehicular homicide); 609.221
127.15 	(assault in the first degree); 609.223, subdivision 2 (assault in the third degree, past pattern 
127.16 	of child abuse); 609.223, subdivision 3 (assault in the third degree, victim under four); a 
127.17 	felony offense under sections 609.2242 and 609.2243 (domestic assault, spousal abuse, 
127.18 	child abuse or neglect, or a crime against children); 609.2247 (domestic assault by 
127.19 	strangulation); 609.2325 (criminal abuse of a vulnerable adult resulting in the death of a 
127.20 	vulnerable adult); 609.245 (aggravated robbery); 609.247, subdivision 2 or 3 (carjacking 
127.21 	in the first or second degree); 609.25 (kidnapping); 609.255 (false imprisonment); 609.2661
127.22 	(murder of an unborn child in the first degree); 609.2662 (murder of an unborn child in the 
127.23 	second degree); 609.2663 (murder of an unborn child in the third degree); 609.2664
127.24 	(manslaughter of an unborn child in the first degree); 609.2665 (manslaughter of an unborn 
127.25 	child in the second degree); 609.267 (assault of an unborn child in the first degree); 609.2671
127.26 	(assault of an unborn child in the second degree); 609.268 (injury or death of an unborn 
127.27 	child in the commission of a crime); 609.322, subdivision 1 (solicitation, inducement, and 
127.28 	promotion of prostitution; sex trafficking in the first degree); 609.324, subdivision 1 (other 
127.29 	prohibited acts; engaging in, hiring, or agreeing to hire minor to engage in prostitution); 
127.30 	609.342 (criminal sexual conduct in the first degree); 609.343 (criminal sexual conduct in 
127.31 	the second degree); 609.344 (criminal sexual conduct in the third degree); 609.345 (criminal 
127.32 	sexual conduct in the fourth degree); 609.3451 (criminal sexual conduct in the fifth degree); 
127.33 	609.3453 (criminal sexual predatory conduct); 609.3458 (sexual extortion); 609.352
127.34 	(solicitation of children to engage in sexual conduct); 609.377 (malicious punishment of a 
127.35 	child); 609.3775 (child torture); 609.378 (neglect or endangerment of a child); 609.561
128.1 	(arson in the first degree); 609.582, subdivision 1 (burglary in the first degree); 609.746
128.2 	(interference with privacy); 617.23 (indecent exposure); 617.246 (use of minors in sexual 
128.3 	performance prohibited); or 617.247 (possession of child sexual abuse material).
128.4 	(b) Notwithstanding subdivisions 1 to 4, 4b, and 4c, for the purposes of a background 
128.5 	study affiliated with a licensed family foster setting, an individual is disqualified under 
128.6 	section 245C.14, regardless of how much time has passed, if the individual:
128.7 	(1) committed an action under paragraph (e) that resulted in death or involved sexual 
128.8 	abuse, as defined in section 260E.03, subdivision 20;
128.9 	(2) committed an act that resulted in a gross misdemeanor-level conviction for section 
128.10 	609.3451 (criminal sexual conduct in the fifth degree);
128.11 	(3) committed an act against or involving a minor that resulted in a felony-level conviction 
128.12 	for: section 609.222 (assault in the second degree); 609.223, subdivision 1 (assault in the 
128.13 	third degree); 609.2231 (assault in the fourth degree); or 609.224 (assault in the fifth degree); 
128.14 	or
128.15 	(4) committed an act that resulted in a misdemeanor or gross misdemeanor-level 
128.16 	conviction for section 617.293 (dissemination and display of harmful materials to minors).
128.17 	(c) Notwithstanding subdivisions 1 to 4, 4b, and 4c, for a background study affiliated 
128.18 	with a licensed family foster setting, an individual is disqualified under section 245C.14 if 
128.19 	fewer than 20 years have passed since the termination of the individual's parental rights 
128.20 	under section 260C.301, subdivision 1, paragraph (b), or if the individual consented to a 
128.21 	termination of parental rights under section 260C.301, subdivision 1, paragraph (a), to settle 
128.22 	a petition to involuntarily terminate parental rights. An individual is disqualified under 
128.23 	section 245C.14 if fewer than 20 years have passed since the termination of the individual's 
128.24 	parental rights in any other state or country, where the conditions for the individual's 
128.25 	termination of parental rights are substantially similar to the conditions in section 260C.301, 
128.26 	subdivision 1, paragraph (b).
128.27 	(d) Notwithstanding subdivisions 1 to 4, 4b, and 4c, for a background study affiliated 
128.28 	with a licensed family foster setting, an individual is disqualified under section 245C.14 if 
128.29 	fewer than five years have passed since a felony-level violation for sections: 152.021
128.30 	(controlled substance crime in the first degree); 152.022 (controlled substance crime in the 
128.31 	second degree); 152.023 (controlled substance crime in the third degree); 152.024 (controlled 
128.32 	substance crime in the fourth degree); 152.025 (controlled substance crime in the fifth 
128.33 	degree); 152.0261 (importing controlled substances across state borders); 152.0262, 
128.34 	subdivision 1, paragraph (b) (possession of substance with intent to manufacture 
129.1 	methamphetamine); 152.027, subdivision 6, paragraph (c) (sale or possession of synthetic 
129.2 	cannabinoids); 152.096 (conspiracies prohibited); 152.097 (simulated controlled substances); 
129.3 	152.136 (anhydrous ammonia; prohibited conduct; criminal penalties; civil liabilities); 
129.4 	152.137 (fentanyl- and methamphetamine-related crimes involving children or vulnerable 
129.5 	adults); 169A.24 (felony first-degree driving while impaired); 243.166 (violation of predatory 
129.6 	offender registration requirements); 609.2113 (criminal vehicular operation; bodily harm); 
129.7 	609.2114 (criminal vehicular operation; unborn child); 609.228 (great bodily harm caused 
129.8 	by distribution of drugs); 609.2325 (criminal abuse of a vulnerable adult not resulting in 
129.9 	the death of a vulnerable adult); 609.233 (criminal neglect); 609.235 (use of drugs to injure 
129.10 	or facilitate a crime); 609.24 (simple robbery); 609.247, subdivision 4 (carjacking in the 
129.11 	third degree); 609.322, subdivision 1a (solicitation, inducement, and promotion of 
129.12 	prostitution; sex trafficking in the second degree); 609.498, subdivision 1 (tampering with 
129.13 	a witness in the first degree); 609.498, subdivision 1b (aggravated first-degree witness 
129.14 	tampering); 609.562 (arson in the second degree); 609.563 (arson in the third degree); 
129.15 	609.582, subdivision 2 (burglary in the second degree); 609.66 (felony dangerous weapons); 
129.16 	609.687 (adulteration); 609.713 (terroristic threats); 609.749, subdivision 3, 4, or 5 
129.17 	(felony-level harassment or stalking); 609.855, subdivision 5 (shooting at or in a public 
129.18 	transit vehicle or facility); or 624.713 (certain people not to possess firearms).
129.19 	(e) Notwithstanding subdivisions 1 to 4, 4b, and 4c, except as provided in paragraph 
129.20 	(a), for a background study affiliated with a licensed family child foster care license, an 
129.21 	individual is disqualified under section 245C.14 if fewer than five years have passed since:
129.22 	(1) a felony-level violation for an act not against or involving a minor that constitutes: 
129.23 	section 609.222 (assault in the second degree); 609.223, subdivision 1 (assault in the third 
129.24 	degree); 609.2231 (assault in the fourth degree); or 609.224, subdivision 4 (assault in the 
129.25 	fifth degree);
129.26 	(2) a violation of an order for protection under section 518B.01, subdivision 14;
129.27 	(3) a determination or disposition of the individual's failure to make required reports 
129.28 	under section 260E.06 or 626.557, subdivision 3, for incidents in which the final disposition 
129.29 	under chapter 260E or section 626.557 was substantiated maltreatment and the maltreatment 
129.30 	was recurring or serious;
129.31 	(4) a determination or disposition of the individual's substantiated serious or recurring 
129.32 	maltreatment of a minor under chapter 260E, a vulnerable adult under section 626.557, or 
129.33 	serious or recurring maltreatment in any other state, the elements of which are substantially 
130.1 	similar to the elements of maltreatment under chapter 260E or section 626.557 and meet 
130.2 	the definition of serious maltreatment or recurring maltreatment;
130.3 	(5) a gross misdemeanor-level violation for sections: 609.224, subdivision 2 (assault in 
130.4 	the fifth degree); 609.2242 and 609.2243 (domestic assault); 609.233 (criminal neglect); 
130.5 	609.377 (malicious punishment of a child); 609.378 (neglect or endangerment of a child); 
130.6 	609.746 (interference with privacy); 609.749 (stalking); or 617.23 (indecent exposure); or
130.7 	(6) committing an act against or involving a minor that resulted in a misdemeanor-level 
130.8 	violation of section 609.224, subdivision 1 (assault in the fifth degree).
130.9 	(f) For purposes of this subdivision, the disqualification begins from:
130.10 	(1) the date of the alleged violation, if the individual was not convicted;
130.11 	(2) the date of conviction, if the individual was convicted of the violation but not 
130.12 	committed to the custody of the commissioner of corrections; or
130.13 	(3) the date of release from prison, if the individual was convicted of the violation and 
130.14 	committed to the custody of the commissioner of corrections.
130.15 	Notwithstanding clause (3), if the individual is subsequently reincarcerated for a violation 
130.16 	of the individual's supervised release, the disqualification begins from the date of release 
130.17 	from the subsequent incarceration.
130.18 	(g) An individual's aiding and abetting, attempt, or conspiracy to commit any of the 
130.19 	offenses listed in paragraphs (a) and (b), as each of these offenses is defined in Minnesota 
130.20 	Statutes, permanently disqualifies the individual under section 245C.14. An individual is 
130.21 	disqualified under section 245C.14 if fewer than five years have passed since the individual's 
130.22 	aiding and abetting, attempt, or conspiracy to commit any of the offenses listed in paragraphs 
130.23 	(d) and (e).
130.24 	(h) An individual's offense in any other state or country, where the elements of the 
130.25 	offense are substantially similar to any of the offenses listed in paragraphs (a) and (b), 
130.26 	permanently disqualifies the individual under section 245C.14. An individual is disqualified 
130.27 	under section 245C.14 if fewer than five years have passed since an offense in any other 
130.28 	state or country, the elements of which are substantially similar to the elements of any 
130.29 	offense listed in paragraphs (d) and (e).

131.1 	Sec. 22. Minnesota Statutes 2025 Supplement, section 245C.22, subdivision 5, is amended 
131.2 	to read:
131.3 		Subd. 5.Scope of set-aside. (a) If the commissioner sets aside a disqualification under 
131.4 	this section, the disqualified individual remains disqualified, but may hold a license and 
131.5 	have direct contact with or access to persons receiving services. Except as provided in 
131.6 	paragraph (b), the commissioner's set-aside of a disqualification is limited solely to the 
131.7 	licensed program, applicant, or agency specified in the set aside notice under section 245C.23. 
131.8 	For personal care provider organizations, financial management services organizations, 
131.9 	community first services and supports organizations, unlicensed home and community-based 
131.10 	organizations, and consumer-directed community supports organizations, the commissioner's 
131.11 	set-aside may further be limited to a specific individual who is receiving services. For new 
131.12 	background studies required under section 245C.04, subdivision 1, paragraph (h) (g), if an 
131.13 	individual's disqualification was previously set aside for the license holder's program and 
131.14 	the new background study results in no new information that indicates the individual may 
131.15 	pose a risk of harm to persons receiving services from the license holder, the previous 
131.16 	set-aside shall remain in effect.
131.17 	(b) If the commissioner has previously set aside an individual's disqualification for one 
131.18 	or more programs or agencies, and the individual is the subject of a subsequent background 
131.19 	study for a different program or agency, the commissioner shall determine whether the 
131.20 	disqualification is set aside for the program or agency that initiated the subsequent 
131.21 	background study. A notice of a set-aside under paragraph (c) shall be issued within 15 
131.22 	working days if all of the following criteria are met:
131.23 	(1) the subsequent background study was initiated in connection with a program licensed 
131.24 	or regulated under the same provisions of law and rule for at least one program for which 
131.25 	the individual's disqualification was previously set aside by the commissioner;
131.26 	(2) the individual is not disqualified for an offense specified in section 245C.15, 
131.27 	subdivision 1 or 2;
131.28 	(3) the commissioner has received no new information to indicate that the individual 
131.29 	may pose a risk of harm to any person served by the program; and
131.30 	(4) the previous set-aside was not limited to a specific person receiving services.
131.31 	(c) Notwithstanding paragraph (b), clause (2), for an individual who is employed in the 
131.32 	substance use disorder field, if the commissioner has previously set aside an individual's 
131.33 	disqualification for one or more programs or agencies in the substance use disorder treatment 
131.34 	field, and the individual is the subject of a subsequent background study for a different 
132.1 	program or agency in the substance use disorder treatment field, the commissioner shall set 
132.2 	aside the disqualification for the program or agency in the substance use disorder treatment 
132.3 	field that initiated the subsequent background study when the criteria under paragraph (b), 
132.4 	clauses (1), (3), and (4), are met and the individual is not disqualified for an offense specified 
132.5 	in section 245C.15, subdivision 1. A notice of a set-aside under paragraph (d) shall be issued 
132.6 	within 15 working days.
132.7 	(d) When a disqualification is set aside under paragraph (b), the notice of background 
132.8 	study results issued under section 245C.17, in addition to the requirements under section 
132.9 	245C.17, shall state that the disqualification is set aside for the program or agency that 
132.10 	initiated the subsequent background study. The notice must inform the individual that the 
132.11 	individual may request reconsideration of the disqualification under section 245C.21 on the 
132.12 	basis that the information used to disqualify the individual is incorrect.

132.13 	Sec. 23. Minnesota Statutes 2024, section 245C.24, subdivision 2, is amended to read:
132.14 		Subd. 2.Permanent bar to set aside a disqualification. (a) Except as provided in 
132.15 	paragraphs (b) to (g) (f), the commissioner may not set aside the disqualification of any 
132.16 	individual disqualified pursuant to this chapter, regardless of how much time has passed, 
132.17 	if the individual was disqualified for a crime or conduct listed in section 245C.15, subdivision 
132.18 	1.
132.19 	(b) For an individual in the substance use disorder or corrections field who was 
132.20 	disqualified for a crime or conduct listed under section 245C.15, subdivision 1, and whose 
132.21 	disqualification was set aside prior to July 1, 2005, the commissioner must consider granting 
132.22 	a variance pursuant to section 245C.30 for the license holder for a program dealing primarily 
132.23 	with adults. A request for reconsideration evaluated under this paragraph must include a 
132.24 	letter of recommendation from the license holder that was subject to the prior set-aside 
132.25 	decision addressing the individual's quality of care to children or vulnerable adults and the 
132.26 	circumstances of the individual's departure from that service.
132.27 	(c) If an individual who requires a background study for nonemergency medical 
132.28 	transportation services under section 245C.03, subdivision 12, was disqualified for a crime 
132.29 	or conduct listed under section 245C.15, subdivision 1, and if more than 40 years have 
132.30 	passed since the discharge of the sentence imposed, the commissioner may consider granting 
132.31 	a set-aside pursuant to section 245C.22. A request for reconsideration evaluated under this 
132.32 	paragraph must include a letter of recommendation from the employer. This paragraph does 
132.33 	not apply to a person disqualified based on a violation of sections 243.166; 609.185 to 
133.1 	609.205; 609.25; 609.342 to 609.3453; 609.352; 617.23, subdivision 2, clause (1), or 3, 
133.2 	clause (1); 617.246; or 617.247.
133.3 	(d) When a licensed foster care provider adopts an individual who had received foster 
133.4 	care services from the provider for over six months, and the adopted individual is required 
133.5 	to receive a background study under section 245C.03, subdivision 1, paragraph (a), clause 
133.6 	(2) or (6), the commissioner may grant a variance to the license holder under section 245C.30 
133.7 	to permit the adopted individual with a permanent disqualification to remain affiliated with 
133.8 	the license holder under the conditions of the variance when the variance is recommended 
133.9 	by the county of responsibility for each of the remaining individuals in placement in the 
133.10 	home and the licensing agency for the home.
133.11 	(e) For an individual 18 years of age or older affiliated with a licensed family foster 
133.12 	setting, the commissioner must not set aside or grant a variance for the disqualification of 
133.13 	any individual disqualified pursuant to this chapter, regardless of how much time has passed, 
133.14 	if the individual was disqualified for a crime or conduct listed in section 245C.15, subdivision 
133.15 	4a, paragraphs (a) and (b).
133.16 	(f) In connection with a family foster setting license, the commissioner may grant a 
133.17 	variance to the disqualification for an individual who is under 18 years of age at the time 
133.18 	the background study is submitted.
133.19 	(g) In connection with foster residence settings and children's residential facilities, the 
133.20 	commissioner must not set aside or grant a variance for the disqualification of any individual 
133.21 	disqualified pursuant to this chapter, regardless of how much time has passed, if the individual 
133.22 	was disqualified for a crime or conduct listed in section 245C.15, subdivision 4a, paragraph 
133.23 	(a) or (b).

133.24 	Sec. 24. Minnesota Statutes 2024, section 245D.04, subdivision 3, is amended to read:
133.25 		Subd. 3.Protection-related rights. (a) A person's protection-related rights include the 
133.26 	right to:
133.27 	(1) have personal, financial, service, health, and medical information kept private, and 
133.28 	be advised of disclosure of this information by the license holder;
133.29 	(2) access records and recorded information about the person in accordance with 
133.30 	applicable state and federal law, regulation, or rule;
133.31 	(3) be free from maltreatment;
134.1 	(4) be free from restraint, time out, seclusion, restrictive intervention, or other prohibited 
134.2 	procedure identified in section 245D.06, subdivision 5, or successor provisions, except for: 
134.3 	(i) emergency use of manual restraint to protect the person from imminent danger to self 
134.4 	or others according to the requirements in section 245D.061 or successor provisions; or (ii) 
134.5 	the use of safety interventions as part of a positive support transition plan under section 
134.6 	245D.06, subdivision 8, or successor provisions;
134.7 	(5) receive services in a clean and safe environment when the license holder is the owner, 
134.8 	lessor, or tenant of the service site;
134.9 	(6) be treated with courtesy and respect and receive respectful treatment of the person's 
134.10 	property;
134.11 	(7) reasonable observance of cultural and ethnic practice and religion;
134.12 	(8) be free from bias and harassment regarding race, gender, age, disability, spirituality, 
134.13 	and sexual orientation;
134.14 	(9) be informed of and use the license holder's grievance policy and procedures, including 
134.15 	knowing how to contact persons responsible for addressing problems and to appeal under 
134.16 	section 256.045;
134.17 	(10) know the name, telephone number, and the website, email, and street addresses of 
134.18 	protection and advocacy services, including the appropriate state-appointed ombudsman, 
134.19 	and a brief description of how to file a complaint with these offices;
134.20 	(11) assert these rights personally, or have them asserted by the person's family, 
134.21 	authorized representative, or legal representative, without retaliation;
134.22 	(12) give or withhold written informed consent to participate in any research or 
134.23 	experimental treatment;
134.24 	(13) associate with other persons of the person's choice in the community;
134.25 	(14) personal privacy, including the right to use the lock on the person's bedroom or unit 
134.26 	door;
134.27 	(15) engage in chosen activities; and
134.28 	(16) access to the person's personal possessions at any time, including financial resources.
134.29 	(b) For a person residing in a residential site licensed according to chapter 245A, or 
134.30 	where the license holder is the owner, lessor, or tenant of the residential service site, 
134.31 	protection-related rights also include the right to:
135.1 	(1) have daily, private access to and use of a non-coin-operated telephone for local calls 
135.2 	and long-distance calls made collect or paid for by the person;
135.3 	(2) receive and send, without interference, uncensored, unopened mail or electronic 
135.4 	correspondence or communication;
135.5 	(3) have use of and free access to common areas in the residence and the freedom to 
135.6 	come and go from the residence at will;
135.7 	(4) choose the person's visitors and time of visits and have privacy for visits with the 
135.8 	person's spouse, next of kin, legal counsel, religious adviser, or others, in accordance with 
135.9 	section 363A.09 of the Human Rights Act, including privacy in the person's bedroom;
135.10 	(5) have access to three nutritionally balanced meals and nutritious snacks between 
135.11 	meals each day;
135.12 	(6) have freedom and support to access food and potable water at any time;
135.13 	(7) have the freedom to furnish and decorate the person's bedroom or living unit;
135.14 	(8) a setting that is clean and free from accumulation of dirt, grease, garbage, peeling 
135.15 	paint, mold, vermin, and insects;
135.16 	(9) a setting that is free from hazards that threaten the person's health or safety; and
135.17 	(10) a setting that meets the definition of a dwelling unit within a residential occupancy 
135.18 	as defined in the State Fire Code.
135.19 	(c) Restriction of a person's rights under paragraph (a), clauses (13) to (16), or paragraph 
135.20 	(b), clauses (1) to (7), is allowed only if determined necessary to ensure the health, safety, 
135.21 	and well-being of the person. Any restriction of those rights must be documented in the 
135.22 	person's support plan or support plan addendum. The restriction must be implemented in 
135.23 	the least restrictive alternative manner necessary to protect the person and provide support 
135.24 	to reduce or eliminate the need for the restriction in the most integrated setting and inclusive 
135.25 	manner. The documentation must include the following information:
135.26 	(1) the justification for the restriction based on an assessment of the person's vulnerability 
135.27 	related to exercising the right without restriction;
135.28 	(2) the objective measures set as conditions for ending the restriction;
135.29 	(3) a schedule for reviewing the need for the restriction based on the conditions for 
135.30 	ending the restriction to occur semiannually from the date of initial approval, at a minimum, 
135.31 	or more frequently if requested by the person, the person's legal representative, if any, and 
135.32 	case manager; and
136.1 	(4) signed and dated approval for the restriction from the person, or the person's legal 
136.2 	representative, if any. A restriction may be implemented only when the required approval 
136.3 	has been obtained. Approval may be withdrawn at any time. If approval is withdrawn, the 
136.4 	right must be immediately and fully restored.

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

136.6 	Sec. 25. Minnesota Statutes 2024, section 245D.10, subdivision 4, is amended to read:
136.7 		Subd. 4.Availability of current written policies and procedures. (a) The license 
136.8 	holder must review and update, as needed, the written policies and procedures required 
136.9 	under this chapter.
136.10 	(b)(1) The license holder must inform the person or the person's legal representative and 
136.11 	case manager of the policies and procedures affecting a person's rights under section 245D.04, 
136.12 	and provide copies of those policies and procedures, within five working days of service 
136.13 	initiation.
136.14 	(2) If a license holder only provides basic services and supports, this includes the:
136.15 	(i) grievance policy and procedure required under subdivision 2; and
136.16 	(ii) service suspension and termination policy and procedure required under subdivision 
136.17 	3.; and
136.18 	(iii) emergency use of manual restraints policy and procedure required under section 
136.19 	245D.061, subdivision 9, or successor provisions.
136.20 	(3) For all other license holders this includes the:
136.21 	(i) policies and procedures in clause (2); and
136.22 	(ii) emergency use of manual restraints policy and procedure required under section 
136.23 	245D.061, subdivision 9, or successor provisions; and
136.24 	(iii) (ii) data privacy requirements under section 245D.11, subdivision 3.
136.25 	(c) The license holder must provide a written notice to all persons or their legal 
136.26 	representatives and case managers at least 30 days before implementing any procedural 
136.27 	revisions to policies affecting a person's service-related or protection-related rights under 
136.28 	section 245D.04 and maltreatment reporting policies and procedures. The notice must 
136.29 	explain the revision that was made and include a copy of the revised policy and procedure. 
136.30 	The license holder must document the reasonable cause for not providing the notice at least 
136.31 	30 days before implementing the revisions.
137.1 	(d) Before implementing revisions to required policies and procedures, the license holder 
137.2 	must inform all employees of the revisions and provide training on implementation of the 
137.3 	revised policies and procedures.
137.4 	(e) The license holder must annually notify all persons, or their legal representatives, 
137.5 	and case managers of any procedural revisions to policies required under this chapter, other 
137.6 	than those in paragraph (c). Upon request, the license holder must provide the person, or 
137.7 	the person's legal representative, and case manager with copies of the revised policies and 
137.8 	procedures.

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

137.10 	Sec. 26. Minnesota Statutes 2024, section 256B.02, is amended by adding a subdivision 
137.11 	to read:
137.12 		Subd. 20.Fraud. "Fraud" means an intentional deception or misrepresentation made by 
137.13 	a person with the knowledge that the deception could result in an unauthorized benefit to 
137.14 	the person or another person. Fraud includes:
137.15 	(1) the following crimes, including attempts or conspiracy to commit the crimes:
137.16 	(i) theft in violation of section 609.52;
137.17 	(ii) perjury in violation of section 609.48;
137.18 	(iii) aggravated forgery and forgery in violation of sections 609.625 and 609.63;
137.19 	(iv) medical assistance fraud in violation of section 609.466;
137.20 	(v) financial transaction card fraud in violation of section 609.821;
137.21 	(vi) wrongfully obtaining assistance in violation of section 256.98;
137.22 	(vii) illegal remunerations in violation of section 609.542; and
137.23 	(viii) a felony listed in United States Code, title 42, section 1320a-7b(b)(1) or (2), subject 
137.24 	to any safe harbors established in Code of Federal Regulations, title 42, part 1001, section 
137.25 	952;
137.26 	(2) any act that constitutes fraud under applicable federal or state law, including but not 
137.27 	limited to knowingly and willfully submitting an application for provider status that is false 
137.28 	or fraudulent in whole or in part; and
137.29 	(3) an intentional submission of a claim for reimbursement under chapter 256B, knowing 
137.30 	or having reason to know the claim is ineligible for reimbursement in whole or in part and 
137.31 	acting with the intent to defraud the payor.

138.1 	Sec. 27. Minnesota Statutes 2024, section 256B.04, subdivision 10, is amended to read:
138.2 		Subd. 10.Investigation of certain claims. The commissioner must establish by rule 
138.3 	general criteria and procedures for the identification and prompt investigation of suspected 
138.4 	medical assistance fraud, theft, abuse, presentment of false or duplicate claims, presentment 
138.5 	of claims for services not reasonable or medically necessary, or false statement or 
138.6 	representation of material facts by a vendor of medical care, and for the imposition of 
138.7 	sanctions against a vendor of medical care. The commissioner may utilize both prepayment 
138.8 	and postpayment review systems to review claims submitted by vendors. Payment of claims, 
138.9 	including payments made after a prepayment review, does not prohibit the commissioner 
138.10 	from completing a postpayment claims review and taking additional administrative actions 
138.11 	or monetary recovery against a vendor. If it appears to the state agency that a vendor of 
138.12 	medical care may have acted in a manner warranting civil or criminal proceedings, it shall 
138.13 	so inform the attorney general in writing.

138.14 	Sec. 28. Minnesota Statutes 2024, section 256B.064, subdivision 2, is amended to read:
138.15 		Subd. 2.Imposition of monetary recovery and sanctions. (a) The commissioner shall 
138.16 	determine any monetary amounts to be recovered and sanctions to be imposed upon an 
138.17 	individual or entity under this section. Except as provided in paragraphs (b) and (d), neither 
138.18 	a monetary recovery nor a sanction will be imposed by the commissioner without prior 
138.19 	notice and an opportunity for a hearing, according to chapter 14, on the commissioner's 
138.20 	proposed action, provided that the commissioner may suspend or reduce payment to an 
138.21 	individual or entity, except a nursing home or convalescent care facility, after notice and 
138.22 	prior to the hearing if in the commissioner's opinion that action is necessary to protect the 
138.23 	public welfare and the interests of the program.
138.24 	(b) Except when the commissioner finds good cause not to suspend payments under 
138.25 	Code of Federal Regulations, title 42, section 455.23(e) or (f), the commissioner shall 
138.26 	withhold or reduce payments to an individual or entity without providing advance notice 
138.27 	of such withholding or reduction if either of the following occurs:
138.28 	(1) the individual or entity is convicted of a crime involving the conduct described in 
138.29 	subdivision 1a; or
138.30 	(2) the commissioner determines there is a credible allegation of fraud for which an 
138.31 	investigation is pending under the program. Allegations are considered credible when they 
138.32 	have an indicium of reliability and the state agency has reviewed all allegations, facts, and 
138.33 	evidence carefully and acts judiciously on a case-by-case basis. A credible allegation of 
139.1 	fraud is an allegation which has been verified by the state, from any source, including but 
139.2 	not limited to:
139.3 	(i) fraud hotline complaints;
139.4 	(ii) claims data mining; and
139.5 	(iii) patterns identified through provider audits, civil false claims cases, and law 
139.6 	enforcement investigations.
139.7 	(c) The commissioner must send notice of the withholding or reduction of payments 
139.8 	under paragraph (b) within five days of taking such action unless requested in writing by a 
139.9 	law enforcement agency to temporarily withhold the notice. The notice must:
139.10 	(1) state that payments are being withheld according to paragraph (b);
139.11 	(2) set forth the general allegations as to the nature of the withholding action, but need 
139.12 	not disclose any specific information concerning an ongoing investigation;
139.13 	(3) except in the case of a conviction for conduct described in subdivision 1a, state that 
139.14 	the withholding is for a temporary period and cite the circumstances under which withholding 
139.15 	will be terminated;
139.16 	(4) identify the types of claims to which the withholding applies; and
139.17 	(5) inform the individual or entity of the right to submit written evidence for consideration 
139.18 	by the commissioner.
139.19 	The withholding of payments under paragraph (b) is a temporary action and is not subject 
139.20 	to a contested case for the purposes of chapter 14 nor subject to appeal under section 256.045.
139.21 	(d) The withholding or reduction of payments will not continue after the commissioner 
139.22 	determines there is insufficient evidence of fraud by the individual or entity, or after legal 
139.23 	proceedings relating to the alleged fraud are completed, unless the commissioner has sent 
139.24 	notice of intention to impose monetary recovery or sanctions under paragraph (a). Upon 
139.25 	conviction for a crime related to the provision, management, or administration of a health 
139.26 	service under medical assistance, a payment held pursuant to this section by the commissioner 
139.27 	or a managed care organization that contracts with the commissioner under section 256B.035 
139.28 	is forfeited to the commissioner or managed care organization, regardless of the amount 
139.29 	charged in the criminal complaint or the amount of criminal restitution ordered.
139.30 	(e) The commissioner shall suspend or terminate an individual's or entity's participation 
139.31 	in the program without providing advance notice and an opportunity for a hearing when the 
139.32 	suspension or termination is required because of the individual's or entity's exclusion from 
140.1 	participation in Medicare. Within five days of taking such action, the commissioner must 
140.2 	send notice of the suspension or termination. The notice must:
140.3 	(1) state that suspension or termination is the result of the individual's or entity's exclusion 
140.4 	from Medicare;
140.5 	(2) identify the effective date of the suspension or termination; and
140.6 	(3) inform the individual or entity of the need to be reinstated to Medicare before 
140.7 	reapplying for participation in the program.
140.8 	(f) Upon receipt of a notice under paragraph (a) that a monetary recovery or sanction is 
140.9 	to be imposed, an individual or entity may request a contested case, as defined in section 
140.10 	14.02, subdivision 3, by filing with the commissioner a written request of appeal. The appeal 
140.11 	request must be received by the commissioner no later than 30 days after the date the 
140.12 	notification of monetary recovery or sanction was mailed to the individual or entity. The 
140.13 	appeal request must specify:
140.14 	(1) each disputed item, the reason for the dispute, and an estimate of the dollar amount 
140.15 	involved for each disputed item;
140.16 	(2) the computation that the individual or entity believes is correct;
140.17 	(3) the authority in statute or rule upon which the individual or entity relies for each 
140.18 	disputed item;
140.19 	(4) the name and address of the person or entity with whom contacts may be made 
140.20 	regarding the appeal; and
140.21 	(5) other information required by the commissioner.
140.22 	(g) The commissioner may order an individual or entity to forfeit a fine for failure to 
140.23 	fully document services according to standards in this chapter and Minnesota Rules, chapter 
140.24 	9505. The commissioner may assess fines if specific required components of documentation 
140.25 	are missing. The fine for incomplete documentation shall equal 20 percent of the amount 
140.26 	paid on the claims for reimbursement submitted by the individual or entity, or up to $5,000, 
140.27 	whichever is less. If the commissioner determines that an individual or entity repeatedly 
140.28 	violated this chapter, chapter 254B or 245G, or Minnesota Rules, chapter 9505, related to 
140.29 	the provision of services to program recipients and the submission of claims for payment, 
140.30 	the commissioner may order an individual or entity to forfeit a fine based on the nature, 
140.31 	severity, and chronicity of the violations, in an amount of up to $5,000 or 20 percent of the 
140.32 	value of the claims, whichever is greater.
141.1 	(h) The individual or entity shall pay the fine assessed on or before the payment date 
141.2 	specified. If the individual or entity fails to pay the fine, the commissioner may withhold 
141.3 	or reduce payments and recover the amount of the fine. A timely appeal shall stay payment 
141.4 	of the fine until the commissioner issues a final order.
141.5 	(i) Section 15.013 does not apply to the commissioner taking action under this section.

141.6 	Sec. 29. Minnesota Statutes 2024, section 256B.27, subdivision 3, is amended to read:
141.7 		Subd. 3.Access to medical records. The commissioner of human services, with the 
141.8 	written consent of the recipient, on file with the local welfare agency, shall be allowed 
141.9 	access in the manner and within the time prescribed by the commissioner to all personal 
141.10 	medical records of medical assistance recipients solely for the purposes of investigating 
141.11 	whether or not: (a) a vendor of medical care has submitted a claim for reimbursement, a 
141.12 	cost report or a rate application which is duplicative, erroneous, or false in whole or in part, 
141.13 	or which results in the vendor obtaining greater compensation than the vendor is legally 
141.14 	entitled to; or (b) the medical care was medically necessary. When the commissioner is 
141.15 	investigating a possible overpayment of Medicaid funds, The commissioner may conduct 
141.16 	on-site inspections of any and all vendors and service locations or may request records from 
141.17 	a vendor to verify that information submitted to the commissioner is accurate, determine 
141.18 	compliance with service delivery and billing requirements, and determine compliance with 
141.19 	any other applicable laws or rules. The commissioner must be given immediate access 
141.20 	without prior notice to the vendor's office during regular business hours and to documentation 
141.21 	and records related to services provided and submission of claims for services provided. 
141.22 	The department shall document in writing the need for immediate access to records related 
141.23 	to a specific investigation. Denying the commissioner access to records is cause for the 
141.24 	vendor's immediate suspension of payment or termination according to section 256B.064. 
141.25 	The determination of provision of services not medically necessary shall be made by the 
141.26 	commissioner. Notwithstanding any other law to the contrary, a vendor of medical care 
141.27 	shall not be subject to any civil or criminal liability for providing access to medical records 
141.28 	to the commissioner of human services pursuant to this section.

141.29 	Sec. 30. Minnesota Statutes 2025 Supplement, section 260E.03, subdivision 6, is amended 
141.30 	to read:
141.31 		Subd. 6.Facility. "Facility" means:
141.32 	(1) a licensed or unlicensed day care facility, certified license-exempt child care center, 
141.33 	residential facility, agency, psychiatric residential treatment facility, hospital, sanitarium, 
142.1 	or other facility or institution required to be licensed under sections 144.50 to 144.58, 
142.2 	241.021, or 245A.01 to 245A.16, or chapter 142B, 142C, 144H, or 245D;
142.3 	(2) a school as defined in section 120A.05, subdivisions 9, 11, and 13; and chapter 124E; 
142.4 	or
142.5 	(3) a nonlicensed personal care provider organization as defined in section 256B.0625, 
142.6 	subdivision 19a.

142.7 	Sec. 31. Minnesota Statutes 2025 Supplement, section 260E.11, subdivision 1, is amended 
142.8 	to read:
142.9 		Subdivision 1.Reports of maltreatment in facility. A person mandated to report child 
142.10 	maltreatment occurring within a licensed facility shall report the information to the agency 
142.11 	responsible for licensing or certifying the facility under sections 144.50 to 144.58, 241.021, 
142.12 	and 245A.01 to 245A.16 or chapter 142B, 142C, 144H, or 245D or to a nonlicensed personal 
142.13 	care provider organization as defined in section 256B.0625, subdivision 19a. A person 
142.14 	mandated to report child maltreatment occurring within a federally certified psychiatric 
142.15 	residential treatment facility must report the information to the Department of Health.

142.16 	Sec. 32. Minnesota Statutes 2025 Supplement, section 260E.14, subdivision 1, is amended 
142.17 	to read:
142.18 		Subdivision 1.Facilities and schools. (a) The local welfare agency is the agency 
142.19 	responsible for investigating allegations of maltreatment in child foster care, family child 
142.20 	care, legally nonlicensed child care, and reports involving children served by an unlicensed 
142.21 	personal care provider organization under section 256B.0659. Copies of findings related to 
142.22 	personal care provider organizations under section 256B.0659 must be forwarded to the 
142.23 	Department of Human Services provider enrollment.
142.24 	(b) The Department of Human Services is the agency responsible for screening and 
142.25 	investigating allegations of maltreatment in juvenile correctional facilities listed under 
142.26 	section 241.021 located in the local welfare agency's county and in facilities licensed or 
142.27 	certified under chapters 245A and 245D, except federally certified psychiatric residential 
142.28 	treatment facilities.
142.29 	(c) The Department of Health is the agency responsible for screening and investigating 
142.30 	allegations of maltreatment in facilities licensed under sections 144.50 to 144.58 and 144A.43 
142.31 	to 144A.482or, chapter 144H, or federally certified as a psychiatric residential treatment 
142.32 	facility.
143.1 	(d) The Department of Education is the agency responsible for screening and investigating 
143.2 	allegations of maltreatment in a school as defined in section 120A.05, subdivisions 9, 11, 
143.3 	and 13, and chapter 124E. The Department of Education's responsibility to screen and 
143.4 	investigate includes allegations of maltreatment involving students 18 through 21 years of 
143.5 	age, including students receiving special education services, up to and including graduation 
143.6 	and the issuance of a secondary or high school diploma.
143.7 	(e) The Department of Human Services is the agency responsible for screening and 
143.8 	investigating allegations of maltreatment of minors in an EIDBI agency operating under 
143.9 	sections 245A.142 and 256B.0949.
143.10 	(f) A health or corrections agency receiving a report may request the local welfare agency 
143.11 	to provide assistance pursuant to this section and sections 260E.20 and 260E.22.
143.12 	(g) The Department of Children, Youth, and Families is the agency responsible for 
143.13 	screening and investigating allegations of maltreatment in facilities or programs not listed 
143.14 	in paragraph (a) that are licensed or certified under chapters 142B and 142C.

143.15 	Sec. 33. Minnesota Statutes 2025 Supplement, section 626.5572, subdivision 13, is amended 
143.16 	to read:
143.17 		Subd. 13.Lead investigative agency. "Lead investigative agency" is the primary 
143.18 	administrative agency responsible for investigating reports made under section 626.557.
143.19 	(a) The Department of Health is the lead investigative agency for facilities or services 
143.20 	licensed or required to be licensed as hospitals, home care providers, nursing homes, boarding 
143.21 	care homes, hospice providers, residential facilities that are also federally certified as 
143.22 	intermediate care facilities that serve people with developmental disabilities, federally 
143.23 	certified psychiatric residential treatment facilities, or any other facility or service not listed 
143.24 	in this subdivision that is licensed or required to be licensed by the Department of Health 
143.25 	for the care of vulnerable adults. "Home care provider" has the meaning provided in section 
143.26 	144A.43, subdivision 4, and applies when care or services are delivered in the vulnerable 
143.27 	adult's home.
143.28 	(b) The Department of Human Services is the lead investigative agency for facilities or 
143.29 	services licensed or required to be licensed as adult day care, adult foster care, community 
143.30 	residential settings, programs for people with disabilities, EIDBI agencies, family adult day 
143.31 	services, mental health programs, mental health clinics, substance use disorder programs, 
143.32 	the Minnesota Sex Offender Program, or any other facility or service not listed in this 
143.33 	subdivision that is licensed or required to be licensed by the Department of Human Services, 
144.1 	except federally certified psychiatric residential treatment facilities. The Department of 
144.2 	Human Services is also the lead investigative agency for unlicensed EIDBI agencies under 
144.3 	section 256B.0949.
144.4 	(c) The county social service agency or its designee is the lead investigative agency for 
144.5 	all other reports, including but not limited to reports involving vulnerable adults receiving 
144.6 	services from a personal care provider organization under section 256B.0659.

144.7 	Sec. 34. NEW BACKGROUND STUDIES FOR INDIVIDUALS NOT IN NETSTUDY 
144.8 	2.0.
 144.9 	By March 1, 2027, the commissioner of human services and counties must conduct new 
144.10 	background studies for all individuals specified under Minnesota Statutes, section 245C.03, 
144.11 	subdivision 1, paragraph (a), clauses (2) to (6), and affiliated with a child foster family 
144.12 	setting license holder, adult foster care or family adult day services and with a family child 
144.13 	care license holder, or a legal nonlicensed child care provider authorized under Minnesota 
144.14 	Statutes, chapter 142E. The commissioner or county must follow the requirements in 
144.15 	Minnesota Statutes, section 245C.04, subdivision 1, paragraphs (e) and (f), when conducting 
144.16 	the background studies under this section. The new background studies must be submitted 
144.17 	through NETStudy 2.0.

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

144.19 	Sec. 35. REPEALER.
 144.20 	(a) Minnesota Statutes 2024, section 245A.02, subdivision 10b, is repealed.
144.21 	(b) Minnesota Statutes 2025 Supplement, section 245A.10, subdivision 3a, is repealed.
144.22 	(c) Minnesota Rules, part 9505.2165, subpart 4, is repealed.

	ARTICLE 1	AGING AND DISABILITY SERVICES........	Page.Ln 2.6	
	ARTICLE 2	BEHAVIORAL HEALTH........	Page.Ln 45.5	
	ARTICLE 3	HEALTH CARE........	Page.Ln 69.1	
	ARTICLE 4	HOUSING AND ECONOMIC SUPPORTS........	Page.Ln 91.1	
	ARTICLE 5	OFFICE OF THE INSPECTOR GENERAL........	Page.Ln 96.15	

APPENDIX 

Repealed Minnesota Statutes: 26-06085 

245A.02 DEFINITIONS.Subd. 10b.Owner. 
"Owner" means an individual or organization that has a direct or indirect ownership interest of five percent or more in a program licensed under this chapter. For purposes of this subdivision, "direct ownership interest" means the possession of equity in capital, stock, or profits of an organization, and "indirect ownership interest" means a direct ownership interest in an entity that has a direct or indirect ownership interest in a licensed program. For purposes of this chapter, "owner of an employee stock ownership plan" means the president and treasurer of the entity. A government entity or nonprofit corporation that is issued a license under this chapter shall be designated the owner. 

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). 

256B.0759 SUBSTANCE USE DISORDER DEMONSTRATION PROJECT.Subd. 2.Provider participation. 
(a) Programs licensed by the Department of Human Services as nonresidential substance use disorder treatment programs that receive payment under this chapter must enroll as demonstration project providers and meet the requirements of subdivision 3 by January 1, 2025. Programs that do not meet the requirements of this paragraph are ineligible for payment for services provided under section 256B.0625. 

(b) Programs licensed by the Department of Human Services as residential treatment programs according to section 245G.21 that receive payment under this chapter must enroll as demonstration project providers and meet the requirements of subdivision 3 by January 1, 2024. Programs that do not meet the requirements of this paragraph are ineligible for payment for services provided under section 256B.0625. 

(c) Programs licensed by the Department of Human Services as residential treatment programs according to section 245G.21 that receive payment under this chapter, are licensed as a hospital under sections 144.50 to 144.581, and provide only ASAM 3.7 medically monitored inpatient level of care are not required to enroll as demonstration project providers. Programs meeting these criteria must submit evidence of providing the required level of care to the commissioner to be exempt from enrolling in the demonstration. 

(d) Programs licensed by the Department of Human Services as withdrawal management programs according to chapter 245F that receive payment under this chapter must enroll as demonstration project providers and meet the requirements of subdivision 3 by January 1, 2024. Programs that do not meet the requirements of this paragraph are ineligible for payment for services provided under section 256B.0625. 

(e) Out-of-state residential substance use disorder treatment programs that receive payment under this chapter must enroll as demonstration project providers and meet the requirements of subdivision 3 by January 1, 2024. Programs that do not meet the requirements of this paragraph are ineligible for payment for services provided under section 256B.0625. 

(f) Tribally licensed programs may elect to participate in the demonstration project and meet the requirements of subdivision 3. The Department of Human Services must consult with Tribal Nations to discuss participation in the substance use disorder demonstration project. 

(g) The commissioner shall allow providers enrolled in the demonstration project before July 1, 2021, to receive applicable rate enhancements authorized under subdivision 4 for all services provided on or after the date of enrollment, except that the commissioner shall allow a provider to receive applicable rate enhancements authorized under subdivision 4 for services provided on or after July 22, 2020, to fee-for-service enrollees, and on or after January 1, 2021, to managed care enrollees, if the provider meets all of the following requirements: 

(1) the provider attests that during the time period for which the provider is seeking the rate enhancement, the provider took meaningful steps in their plan approved by the commissioner to meet the demonstration project requirements in subdivision 3; and 

(2) the provider submits attestation and evidence, including all information requested by the commissioner, of meeting the requirements of subdivision 3 to the commissioner in a format required by the commissioner. 

(h) The commissioner may recoup any rate enhancements paid under paragraph (g) to a provider that does not meet the requirements of subdivision 3 by July 1, 2021. 

Subd. 5.Federal approval. 
The commissioner shall seek federal approval to implement the demonstration project under this section and to receive federal financial participation. 

256B.5012 ICF/DD PAYMENT SYSTEM IMPLEMENTATION.Subd. 4.ICF/DD rate increases beginning July 1, 2001, and July 1, 2002. 
(a) For the rate years beginning July 1, 2001, and July 1, 2002, the commissioner shall make available to each facility reimbursed under this section an adjustment to the total operating payment rate of 3.5 percent. Of this adjustment, two-thirds must be used as provided under paragraph (b) and one-third must be used for operating costs. 

(b) The adjustment under this paragraph must be used to increase the wages and benefits and pay associated costs of all employees except administrative and central office employees, provided that this increase must be used only for wage and benefit increases implemented on or after the first day of the rate year and must not be used for increases implemented prior to that date. 

(c) For each facility, the commissioner shall make available an adjustment using the percentage specified in paragraph (a) multiplied by the total payment rate, excluding the property-related payment rate, in effect on the preceding June 30. The total payment rate shall include the adjustment provided in section 256B.501, subdivision 12. 

(d) A facility whose payment rates are governed by closure agreements, receivership agreements, or Minnesota Rules, part 9553.0075, is not eligible for an adjustment otherwise granted under this subdivision. 

(e) A facility may apply for the payment rate adjustment provided under paragraph (b). The application must be made to the commissioner and contain a plan by which the facility will distribute the adjustment in paragraph (b) to employees of the facility. For facilities in which the employees are represented by an exclusive bargaining representative, an agreement negotiated and agreed to by the employer and the exclusive bargaining representative constitutes the plan. A negotiated agreement may constitute the plan only if the agreement is finalized after the date of enactment of all rate increases for the rate year. The commissioner shall review the plan to ensure that the payment rate adjustment per diem is used as provided in this subdivision. To be eligible, a facility must submit its plan by March 31, 2002, and March 31, 2003, respectively. If a facility's plan is effective for its employees after the first day of the applicable rate year that the funds are available, the payment rate adjustment per diem is effective the same date as its plan. 

(f) A copy of the approved distribution plan must be made available to all employees by giving each employee a copy or by posting it in an area of the facility to which all employees have access. If an employee does not receive the wage and benefit adjustment described in the facility's approved plan and is unable to resolve the problem with the facility's management or through the employee's union representative, the employee may contact the commissioner at an address or telephone number provided by the commissioner and included in the approved plan. 

Subd. 5.Rate increase effective June 1, 2003. 
For rate periods beginning on or after June 1, 2003, the commissioner shall increase the total operating payment rate for each facility reimbursed under this section by $3 per day. The increase shall not be subject to any annual percentage increase. 

Subd. 6.ICF/DD rate increases October 1, 2005, and October 1, 2006. 
(a) For the rate periods beginning October 1, 2005, and October 1, 2006, the commissioner shall make available to each facility reimbursed under this section an adjustment to the total operating payment rate of 2.2553 percent. 

(b) 75 percent of the money resulting from the rate adjustment under paragraph (a) must be used to increase wages and benefits and pay associated costs for employees, except for administrative and central office employees. 75 percent of the money received by a facility as a result of the rate adjustment provided in paragraph (a) must be used only for wage, benefit, and staff increases implemented on or after the effective date of the rate increase each year, and must not be used for increases implemented prior to that date. The wage adjustment eligible employees may receive may vary based on merit, seniority, or other factors determined by the provider. 

(c) For each facility, the commissioner shall make available an adjustment, based on occupied beds, using the percentage specified in paragraph (a) multiplied by the total payment rate, including variable rate but excluding the property-related payment rate, in effect on the preceding day. The total payment rate shall include the adjustment provided in section 256B.501, subdivision 12. 

(d) A facility whose payment rates are governed by closure agreements or receivership agreements is not eligible for an adjustment otherwise granted under this subdivision. 

(e) A facility may apply for the portion of the payment rate adjustment provided under paragraph (a) for employee wages and benefits and associated costs. The application must be made to the commissioner and contain a plan by which the facility will distribute the funds according to paragraph (b). For facilities in which the employees are represented by an exclusive bargaining representative, an agreement negotiated and agreed to by the employer and the exclusive bargaining representative constitutes the plan. A negotiated agreement may constitute the plan only if the agreement is finalized after the date of enactment of all rate increases for the rate year. The commissioner shall review the plan to ensure that the payment rate adjustment per diem is used as provided in this subdivision. To be eligible, a facility must submit its plan by March 31, 2006, and December 31, 2006, respectively. If a facility's plan is effective for its employees after the first day of the applicable rate period that the funds are available, the payment rate adjustment per diem is effective the same date as its plan. 

(f) A copy of the approved distribution plan must be made available to all employees by giving each employee a copy or by posting it in an area of the facility to which all employees have access. If an employee does not receive the wage and benefit adjustment described in the facility's approved plan and is unable to resolve the problem with the facility's management or through the employee's union representative, the employee may contact the commissioner at an address or telephone number provided by the commissioner and included in the approved plan. 

Subd. 7.ICF/DD rate increases effective October 1, 2007, and October 1, 2008. 
(a) For the rate year beginning October 1, 2007, the commissioner shall make available to each facility reimbursed under this section operating payment rate adjustments equal to 2.0 percent of the operating payment rates in effect on September 30, 2007. For the rate year beginning October 1, 2008, the commissioner shall make available to each facility reimbursed under this section operating payment rate adjustments equal to 2.0 percent of the operating payment rates in effect on September 30, 2008. For each facility, the commissioner shall make available an adjustment, based on occupied beds, using the percentage specified in this paragraph multiplied by the total payment rate, including the variable rate but excluding the property-related payment rate, in effect on the preceding day. The total payment rate shall include the adjustment provided in section 256B.501, subdivision 12. A facility whose payment rates are governed by closure agreements or receivership agreements is not eligible for an adjustment otherwise granted under this subdivision. 

(b) Seventy-five percent of the money resulting from the rate adjustments under paragraph (a) must be used for increases in compensation-related costs for employees directly employed by the facility on or after the effective date of the rate adjustments, except: 

(1) the administrator; 

(2) persons employed in the central office of a corporation that has an ownership interest in the facility or exercises control over the facility; and 

(3) persons paid by the facility under a management contract. 

(c) Two-thirds of the money available under paragraph (b) must be used for wage increases for all employees directly employed by the facility on or after the effective date of the rate adjustments, except those listed in paragraph (b), clauses (1) to (3). The wage adjustment that employees receive under this paragraph must be paid as an equal hourly percentage wage increase for all eligible employees. All wage increases under this paragraph must be effective on the same date. Only costs associated with the portion of the equal hourly percentage wage increase that goes to all employees shall qualify under this paragraph. Costs associated with wage increases in excess of the amount of the equal hourly percentage wage increase provided to all employees shall be allowed only for meeting the requirements in paragraph (b). This paragraph shall not apply to employees covered by a collective bargaining agreement. 

(d) The commissioner shall allow as compensation-related costs all costs for: 

(1) wages and salaries; 

(2) FICA taxes, Medicare taxes, state and federal unemployment taxes, and workers' compensation; 

(3) the employer's share of health and dental insurance, life insurance, disability insurance, long-term care insurance, uniform allowance, and pensions; and 

(4) other benefits provided, subject to the approval of the commissioner. 

(e) The portion of the rate adjustments under paragraph (a) that is not subject to the requirements in paragraphs (b) and (c) shall be provided to facilities effective October 1 of each year. 

(f) Facilities may apply for the portion of the rate adjustments under paragraph (a) that is subject to the requirements in paragraphs (b) and (c). The application must be submitted to the commissioner within six months of the effective date of the rate adjustments, and the facility must provide additional information required by the commissioner within nine months of the effective date of the rate adjustments. The commissioner must respond to all applications within three weeks of receipt. The commissioner may waive the deadlines in this paragraph under extraordinary circumstances, to be determined at the sole discretion of the commissioner. The application must contain: 

(1) an estimate of the amounts of money that must be used as specified in paragraphs (b) and (c); 

(2) a detailed distribution plan specifying the allowable compensation-related and wage increases the facility will implement to use the funds available in clause (1); 

(3) a description of how the facility will notify eligible employees of the contents of the approved application, which must provide for giving each eligible employee a copy of the approved application, excluding the information required in clause (1), or posting a copy of the approved application, excluding the information required in clause (1), for a period of at least six weeks in an area of the facility to which all eligible employees have access; and 

(4) instructions for employees who believe they have not received the compensation-related or wage increases specified in clause (2), as approved by the commissioner, and which must include a mailing address, email address, and the telephone number that may be used by the employee to contact the commissioner or the commissioner's representative. 

(g) The commissioner shall ensure that cost increases in distribution plans under paragraph (f), clause (2), that may be included in approved applications, comply with requirements in clauses (1) to (4): 

(1) costs to be incurred during the applicable rate year resulting from wage and salary increases effective after October 1, 2006, and prior to the first day of the facility's payroll period that includes October 1 of each year shall be allowed if they were not used in the prior year's application and they meet the requirements of paragraphs (b) and (c); 

(2) a portion of the costs resulting from tenure-related wage or salary increases may be considered to be allowable wage increases, according to formulas that the commissioner shall provide, where employee retention is above the average statewide rate of retention of direct care employees; 

(3) the annualized amount of increases in costs for the employer's share of health and dental insurance, life insurance, disability insurance, and workers' compensation shall be allowable compensation-related increases if they are effective on or after April 1 of the year in which the rate adjustments are effective and prior to April 1 of the following year; and 

(4) for facilities in which employees are represented by an exclusive bargaining representative, the commissioner shall approve the application only upon receipt of a letter of acceptance of the distribution plan, as regards members of the bargaining unit, signed by the exclusive bargaining agent and dated after May 25, 2007. Upon receipt of the letter of acceptance, the commissioner shall deem all requirements of this section as having been met in regard to the members of the bargaining unit. 

(h) The commissioner shall review applications received under paragraph (f) and shall provide the portion of the rate adjustments under paragraphs (b) and (c) if the requirements of this subdivision have been met. The rate adjustments shall be effective October 1 of each year. Notwithstanding paragraph (a), if the approved application distributes less money than is available, the amount of the rate adjustment shall be reduced so that the amount of money made available is equal to the amount to be distributed. 

Subd. 8.ICF/DD rate decreases effective July 1, 2009. 
Effective July 1, 2009, the commissioner shall decrease each facility reimbursed under this section operating payment adjustments equal to 2.58 percent of the operating payment rates in effect on June 30, 2009. For each facility, the commissioner shall implement the rate reduction, based on occupied beds, using the percentage specified in this subdivision multiplied by the total payment rate, including the variable rate but excluding the property-related payment rate, in effect on the preceding date. The total rate reduction shall include the adjustment provided in subdivision 7. 

Subd. 9.ICF/DD rate increase effective July 1, 2011; Clearwater County. 
Effective July 1, 2011, the commissioner shall increase the daily rate to $138.23 at an intermediate care facility for the developmentally disabled located in Clearwater County and classified as a class A facility with 15 beds. 

Subd. 10.ICF/DD rate decrease effective July 1, 2011; exception for Clearwater County. 
For each facility reimbursed under this section, except for a facility located in Clearwater County and classified as a class A facility with 15 beds, the commissioner shall decrease operating payment rates equal to 0.095 percent of the operating payment rates in effect on June 30, 2011. For each facility, the commissioner shall apply the rate reduction, based on occupied beds, using the percentage specified in this subdivision multiplied by the total payment rate, including the variable rate but excluding the property-related payment rate, in effect on the preceding date. The total rate reduction shall include the adjustment provided in section 256B.501, subdivision 12. 

Subd. 11.ICF/DD rate decrease effective July 1, 2011. 
For each facility reimbursed under this section, the commissioner shall decrease operating payments equal to 1.5 percent of the operating payment rates in effect on June 30, 2011. For each facility, the commissioner shall apply the rate reduction, based on occupied beds, using the percentage specified in this subdivision multiplied by the total payment rate, including the variable rate but excluding the property-related payment rate, in effect on the preceding date. The total rate reduction shall include the adjustment provided in section 256B.501, subdivision 12. 

Subd. 12.ICF/DD rate increase effective July 1, 2013. 
For each facility reimbursed under this section, the commissioner shall increase operating payments equal to one-half percent of the operating payment rates in effect on June 30, 2013. For each facility, the commissioner shall apply the rate increase, based on occupied beds, using the percentage specified in this subdivision multiplied by the total payment rate, including the variable rate but excluding the property-related payment rate, in effect on the preceding date. The total rate increase shall include the adjustment provided in section 256B.501, subdivision 12. 

Subd. 14.Rate increase effective June 1, 2013. 
For rate periods beginning on or after June 1, 2013, the commissioner shall increase the total operating payment rate for each facility reimbursed under this section by $7.81 per day. The increase shall not be subject to any annual percentage increase. 

Subd. 15.ICF/DD rate increases effective April 1, 2014. 
(a) Notwithstanding subdivision 12, for each facility reimbursed under this section, for the rate period beginning April 1, 2014, the commissioner shall increase operating payments equal to one percent of the operating payment rates in effect on March 31, 2014. 

(b) For each facility, the commissioner shall apply the rate increase based on occupied beds, using the percentage specified in this subdivision multiplied by the total payment rate, including the variable rate, but excluding the property-related payment rate in effect on the preceding date. The total rate increase shall include the adjustment provided in section 256B.501, subdivision 12. 

Subd. 16.ICF/DD rate increases effective July 1, 2014.  
(a) For the rate period beginning July 1, 2014, the commissioner shall increase operating payments for each facility reimbursed under this section equal to five percent of the operating payment rates in effect on June 30, 2014. 

(b) For each facility, the commissioner shall apply the rate increase based on occupied beds, using the percentage specified in this subdivision multiplied by the total payment rate, including the variable rate but excluding the property-related payment rate in effect on June 30, 2014. The total rate increase shall include the adjustment provided in section 256B.501, subdivision 12. 

(c) To receive the rate increase under paragraph (a), each facility reimbursed under this section must submit to the commissioner documentation that identifies a quality improvement project that the facility will implement by June 30, 2015. Documentation must be provided in a format specified by the commissioner. Projects must: 

(1) improve the quality of life of intermediate care facility residents in a meaningful way; 

(2) improve the quality of services in a measurable way; or 

(3) deliver good quality service more efficiently while using the savings to enhance services for the participants served. 

(d) For a facility that fails to submit the documentation described in paragraph (c) by a date or in a format specified by the commissioner, the commissioner shall reduce the facility's rate by one percent effective January 1, 2015. 

(e) Facilities that receive a rate increase under this subdivision shall use 80 percent of the additional revenue to increase compensation-related costs for employees directly employed by the facility on or after July 1, 2014, except: 

(1) persons employed in the central office of a corporation or entity that has an ownership interest in the facility or exercises control over the facility; and 

(2) persons paid by the facility under a management contract. 

This requirement is subject to audit by the commissioner. 

(f) Compensation-related costs include: 

(1) wages and salaries; 

(2) the employer's share of FICA taxes, Medicare taxes, state and federal unemployment taxes, workers' compensation, and mileage reimbursement; 

(3) the employer's share of health and dental insurance, life insurance, disability insurance, long-term care insurance, uniform allowance, pensions, and contributions to employee retirement accounts; and 

(4) other benefits provided and workforce needs, including the recruiting and training of employees as specified in the distribution plan required under paragraph (i). 

(g) For public employees under a collective bargaining agreement, the increase for wages and benefits is available and pay rates must be increased only to the extent that the increases comply with laws governing public employees' collective bargaining. Money received by a facility under paragraph (e) for pay increases for public employees must be used only for pay increases implemented between July 1, 2014, and August 1, 2014. 

(h) For a facility that has employees that are represented by an exclusive bargaining representative, the provider shall obtain a letter of acceptance of the distribution plan required under paragraph (i), in regard to the members of the bargaining unit, signed by the exclusive bargaining agent. Upon receipt of the letter of acceptance, the facility shall be deemed to have met all the requirements of this subdivision in regard to the members of the bargaining unit. Upon request, the facility shall produce the letter of acceptance for the commissioner. 

(i) A facility that receives a rate adjustment under paragraph (a) that is subject to paragraph (e) shall prepare, and upon request submit to the commissioner, a distribution plan that specifies the amount of money the facility expects to receive that is subject to the requirements of paragraph (e), including how that money will be distributed to increase compensation for employees. The commissioner may recover funds from a facility that fails to comply with this requirement. 

(j) By January 1, 2015, the facility shall post the distribution plan required under paragraph (i) for a period of at least six weeks in an area of the facility's operation to which all eligible employees have access and shall provide instructions for employees who do not believe they have received the wage and other compensation-related increases specified in the distribution plan. The instructions must include a mailing address, email address, and telephone number that an employee may use to contact the commissioner or the commissioner's representative. 

256D.09 PAYMENT; ASSESSMENT; OVERPAYMENT.Subd. 2a.Vendor payments for drug dependent persons. 
If, at the time of application or at any other time, there is a reasonable basis for questioning whether a person applying for or receiving financial assistance is drug dependent, as defined in section 254A.02, subdivision 5, the person shall be referred for a chemical health assessment, and only emergency assistance payments or general assistance vendor payments may be provided until the assessment is complete and the results of the assessment made available to the county agency. A reasonable basis for referring an individual for an assessment exists when: 

(1) the person has required detoxification two or more times in the past 12 months; 

(2) the person appears intoxicated at the county agency as indicated by two or more of the following: 

(i) the odor of alcohol; 

(ii) slurred speech; 

(iii) disconjugate gaze; 

(iv) impaired balance; 

(v) difficulty remaining awake; 

(vi) consumption of alcohol; 

(vii) responding to sights or sounds that are not actually present; 

(viii) extreme restlessness, fast speech, or unusual belligerence; 

(3) the person has been involuntarily committed for drug dependency at least once in the past 12 months; or 

(4) the person has received treatment, including domiciliary care, for drug abuse or dependency at least twice in the past 12 months. 

The assessment and determination of drug dependency, if any, must be made by an assessor qualified under section 245G.11, subdivisions 1 and 5, to perform an assessment of chemical use. The county shall only provide emergency general assistance or vendor payments to an otherwise eligible applicant or recipient who is determined to be drug dependent, except up to 15 percent of the grant amount the person would otherwise receive may be paid in cash. Notwithstanding subdivision 1, the commissioner of human services shall also require county agencies to provide assistance only in the form of vendor payments to all eligible recipients who assert substance use disorder as a basis for eligibility under section 256D.05, subdivision 1, paragraph (a), clauses (1) and (5). 

The determination of drug dependency shall be reviewed at least every 12 months. If the county determines a recipient is no longer drug dependent, the county may cease vendor payments and provide the recipient payments in cash. 

Subd. 2b.Disability verification; substance use disorder. 
If at any time there is verification that the client's disability is dependent upon the client's continued drug addiction or alcoholism, general assistance for rent and utilities must be made in the form of vendor payments. 

Verification of drug addiction or alcoholism can be received from: 

(1) denial of Social Security benefits based on drug addiction or alcoholism; 

(2) a statement from the state medical review team that the person's disability is dependent upon continued drug addiction or alcoholism; or 

(3) a doctor's statement that the person's disability is dependent upon continued drug addiction or alcoholism. 

256K.45 HOMELESS YOUTH ACT.Subd. 2.Homeless youth report. 
(a) The commissioner shall prepare a biennial report, beginning February 1, 2025, which provides meaningful information to the chairs and ranking minority members of the legislative committees with jurisdiction over homeless youth, that includes but is not limited to: (1) a list of the areas of the state with the greatest need for services and housing for homeless youth, and the level and nature of the needs identified; (2) details about grants made, including shelter-linked youth mental health grants under section 256K.46; (3) the distribution of funds throughout the state based on population need; (4) follow-up information, if available, on the status of homeless youth and whether they have stable housing two years after services are provided; and (5) any other outcomes for populations served to determine the effectiveness of the programs and use of funding. 

(b) This subdivision expires December 31, 2034. 

626.557 REPORTING OF MALTREATMENT OF VULNERABLE ADULTS.Subd. 10.Duties of county social service agency. 
(a) When the common entry point refers a report to the county social service agency as the lead investigative agency or makes a referral to the county social service agency for emergency adult protective services, or when another lead investigative agency requests assistance from the county social service agency for adult protective services, the county social service agency shall immediately assess and offer emergency and continuing protective social services for purposes of preventing further maltreatment and for safeguarding the welfare of the maltreated vulnerable adult. The county shall use standardized tools and the data system made available by the commissioner. The information entered by the county into the standardized tool must be accessible to the Department of Human Services. In cases of suspected sexual abuse, the county social service agency shall immediately arrange for and make available to the vulnerable adult appropriate medical examination and treatment. When necessary in order to protect the vulnerable adult from further harm, the county social service agency shall seek authority to remove the vulnerable adult from the situation in which the maltreatment occurred. The county social service agency may also investigate to determine whether the conditions which resulted in the reported maltreatment place other vulnerable adults in jeopardy of being maltreated and offer protective social services that are called for by its determination. 

(b) Within five business days of receipt of a report screened in by the county social service agency for investigation, the county social service agency shall determine whether, in addition to an assessment and services for the vulnerable adult, to also conduct an investigation for final disposition of the individual or facility alleged to have maltreated the vulnerable adult. 

(c) The county social service agency must investigate for a final disposition the individual or facility alleged to have maltreated a vulnerable adult for each report accepted as lead investigative agency involving an allegation of abuse, caregiver neglect that resulted in harm to the vulnerable adult, financial exploitation that may be criminal, or an allegation against a caregiver under chapter 256B. 

(d) An investigating county social service agency must make a final disposition for any allegation when the county social service agency determines that a final disposition may safeguard a vulnerable adult or may prevent further maltreatment. 

(e) If the county social service agency learns of an allegation listed in paragraph (c) after the determination in paragraph (a), the county social service agency must change the initial determination and conduct an investigation for final disposition of the individual or facility alleged to have maltreated the vulnerable adult. 

(f) County social service agencies may enter facilities and inspect and copy records as part of an investigation. The county social service agency has access to not public data, as defined in section 13.02, and medical records under sections 144.291 to 144.298, that are maintained by facilities to the extent necessary to conduct its investigation. The inquiry is not limited to the written records of the facility, but may include every other available source of information. 

(g) When necessary in order to protect a vulnerable adult from serious harm, the county social service agency shall immediately intervene on behalf of that adult to help the family, vulnerable adult, or other interested person by seeking any of the following: 

(1) a restraining order or a court order for removal of the perpetrator from the residence of the vulnerable adult pursuant to section 518B.01; 

(2) the appointment of a guardian or conservator pursuant to sections 524.5-101 to 524.5-502, or guardianship or conservatorship pursuant to chapter 252A; 

(3) replacement of a guardian or conservator suspected of maltreatment and appointment of a suitable person as guardian or conservator, pursuant to sections 524.5-101 to 524.5-502; or 

(4) a referral to the prosecuting attorney for possible criminal prosecution of the perpetrator under chapter 609. 

The expenses of legal intervention must be paid by the county in the case of indigent persons, under section 524.5-502 and chapter 563. 

In proceedings under sections 524.5-101 to 524.5-502, if a suitable relative or other person is not available to petition for guardianship or conservatorship, a county employee shall present the petition with representation by the county attorney. The county shall contract with or arrange for a suitable person or organization to provide ongoing guardianship services. If the county presents evidence to the court exercising probate jurisdiction that it has made a diligent effort and no other suitable person can be found, a county employee may serve as guardian or conservator. The county shall not retaliate against the employee for any action taken on behalf of the person subject to guardianship or conservatorship, even if the action is adverse to the county's interest. Any person retaliated against in violation of this subdivision shall have a cause of action against the county and shall be entitled to reasonable attorney fees and costs of the action if the action is upheld by the court. 

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.