SF 3755

2nd Engrossment - 94th Legislature (2025 - 2026)

Posted on 03/19/2026 09:43 a.m.

A bill for an act
relating to human services; repealing housing stabilization services; clarifying the
commissioner's authority to terminate or modify the medical assistance program;
providing a onetime rate add-on for prepayment review delays; requiring a report;
amending Minnesota Statutes 2024, sections 256B.04, subdivision 24, by adding
a subdivision; 256B.0658; 256L.03, subdivision 1; Minnesota Statutes 2025
Supplement, sections 245C.03, subdivision 6; 245C.04, subdivision 6; 245C.10,
subdivision 6; 256B.04, subdivision 21; 256B.0701, subdivision 9; repealing
Minnesota Statutes 2024, section 256B.051, subdivisions 1, 4, 7; Minnesota Statutes
2025 Supplement, section 256B.051, subdivisions 2, 3, 5, 6, 6a, 6b, 8, 9, 10; Laws
2025, First Special Session chapter 3, article 18, section 3.

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

Section 1.

Minnesota Statutes 2025 Supplement, section 245C.03, subdivision 6, is amended
to read:

Subd. 6.

Unlicensed home and community-based waiver providers of service to
seniors and individuals with disabilities deleted text begin and providers of housing stabilization
services deleted text end .

(a) For providers of services specified in the federally approved home and
community-based waiver plans under section 256B.4912 deleted text begin and providers of housing
stabilization services under section 256B.051 deleted text end , the commissioner shall conduct background
studies on any individual who is an owner with at least a five percent ownership stake in
the provider, an operator of the provider, or an employee or volunteer for the provider who
has direct contact with people receiving the services. The individual studied must meet the
requirements of this chapter prior to providing waiver services and as part of ongoing
enrollment.

(b) The requirements in paragraph (a) apply to consumer-directed community supports
under section 256B.4911.

(c) For purposes of this section, "operator" includes but is not limited to a managerial
officer who oversees the billing, management, or policies of the services provided.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2025 Supplement, section 245C.04, subdivision 6, is amended
to read:

Subd. 6.

Unlicensed home and community-based waiver providers of service to
seniors and individuals with disabilities deleted text begin and providers of housing stabilization
services deleted text end .

(a) Providers required to initiate background studies under section 245C.03,
subdivision 6, must initiate a study using the electronic system known as NETStudy 2.0
before the individual begins in a position allowing direct contact with persons served by
the provider. New providers must initiate a study under this subdivision before initial
enrollment if the provider has not already initiated background studies as part of the service
licensure requirements.

(b) Except as provided in paragraph (c), the providers must initiate a background study
annually of an individual required to be studied under section 245C.03, subdivision 6.

(c) After an initial background study under this subdivision is initiated on an individual
by a provider of both services licensed by the commissioner and the unlicensed services
under this subdivision, a repeat annual background study is not required if:

(1) the provider maintains compliance with the requirements of section 245C.07,
paragraph (a), regarding one individual with one address and telephone number as the person
to receive sensitive background study information for the multiple programs that depend
on the same background study, and that the individual who is designated to receive the
sensitive background information is capable of determining, upon the request of the
commissioner, whether a background study subject is providing direct contact services in
one or more of the provider's programs or services and, if so, at which location or locations;
and

(2) the individual who is the subject of the background study provides direct contact
services under the provider's licensed program for at least 40 hours per year so the individual
will be recognized by a probation officer or corrections agent to prompt a report to the
commissioner regarding criminal convictions as required under section 245C.05, subdivision
7.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2025 Supplement, section 245C.10, subdivision 6, is amended
to read:

Subd. 6.

Unlicensed home and community-based waiver providers of service to
seniors and individuals with disabilities deleted text begin and providers of housing stabilization
services deleted text end .

The commissioner shall recover the cost of background studies initiated by
unlicensed home and community-based waiver providers of service to seniors and individuals
with disabilities under section 256B.4912 deleted text begin and providers of housing stabilization services
under section 256B.051 deleted text end through a fee of no more than $44 per study.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2025 Supplement, section 256B.04, subdivision 21, is amended
to read:

Subd. 21.

Provider enrollment.

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

(b) The commissioner shall revalidate:

(1) each provider under this subdivision at least once every five years;

(2) each personal care assistance agency, CFSS provider-agency, and CFSS financial
management services provider under this subdivision at least once every three years;

(3) each EIDBI agency under this subdivision at least once every three years; and

(4) at the commissioner's discretion, any medical-assistance-only provider type the
commissioner deems "high-risk" under this subdivision.

(c) The commissioner shall conduct revalidation as follows:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(3) serves primarily a pediatric population.

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

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

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

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

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

(m) The Department of Human Services may require a provider to purchase a surety
bond as a condition of initial enrollment, reenrollment, reinstatement, or continued enrollment
if: (1) the provider fails to demonstrate financial viability, (2) the department determines
there is significant evidence of or potential for fraud and abuse by the provider, or (3) the
provider or category of providers is designated high-risk pursuant to paragraph (f) and as
per Code of Federal Regulations, title 42, section 455.450. The surety bond must be in an
amount of $100,000 or ten percent of the provider's payments from Medicaid during the
immediately preceding 12 months, whichever is greater. The surety bond must name the
Department of Human Services as an obligee and must allow for recovery of costs and fees
in pursuing a claim on the bond. This paragraph does not apply if the provider currently
maintains a surety bond under the requirements in section deleted text begin 256B.051, deleted text end 256B.0659, 256B.0701,
or 256B.85.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2024, section 256B.04, subdivision 24, is amended to read:

Subd. 24.

Medicaid waiver requests and state plan amendments new text begin ; notice; public
comments new text end .

new text begin (a) new text end The commissioner shall notify the chairs and ranking minority members of
the legislative committees with jurisdiction over medical assistance at least 30 days before
submitting a new Medicaid waiver request to the federal government.

new text begin (b) new text end Prior to submitting any Medicaid waiver request or Medicaid state plan amendment
to the federal government for approval, the commissioner shall publish the text of the waiver
request or state plan amendment, and a summary of and explanation of the need for the
request, on the agency's website and provide a 30-day public comment period. The
commissioner shall notify the public of the availability of this information through the
agency's electronic subscription service. The commissioner shall new text begin publish the text of all
public comments on the agency's website and new text end consider public comments when preparing
the final waiver request or state plan amendment that is to be submitted to the federal
government for approval.

new text begin (c) new text end The commissioner shall also publish on the agency's website notice of any federal
decision related to the state request for approval, within 30 days of the decision. This notice
must describe any modifications to the state request that have been agreed to by the
commissioner as a condition of receiving federal approval.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2024, section 256B.04, is amended by adding a subdivision to
read:

new text begin Subd. 24a. new text end

new text begin Medicaid waiver requests and state plan amendments; prohibited
actions. new text end

new text begin The commissioner must not take the following actions without prior enactment of
legislative authorization:
new text end

new text begin (1) terminate a medical assistance program, waiver, or benefit;
new text end

new text begin (2) request federal assistance with terminating a medical assistance program, waiver, or
benefit; or
new text end

new text begin (3) substantially redesign a medical assistance program, waiver, or benefit.
new text end

Sec. 7.

Minnesota Statutes 2024, section 256B.0658, is amended to read:

256B.0658 HOUSING ACCESS GRANTS.

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

The commissioner of human services shall award through
a competitive process contracts for grants to public and private agencies to support and
assist individuals with a disability deleted text begin as defined in section 256B.051, subdivision 2, paragraph
(e), deleted text end to access housing.

new text begin Subd. 2. new text end

new text begin Definition. new text end

new text begin (a) new text end new text begin For the purposes of this section, the term defined in this
subdivision has the meaning given.
new text end

new text begin (b) "Individual with a disability" means:
new text end

new text begin (1) an individual who is aged, blind, or disabled as determined by the criteria under
sections 216(i)(1) and 221 of the Social Security Act; or
new text end

new text begin (2) an individual who meets a category of eligibility under section 256D.05, subdivision
1, paragraph (a), clause (1), (4), (5) to (8), or (13).
new text end

new text begin Subd. 3. new text end

new text begin Allowable uses of grant funds. new text end

Grants may be awarded to agencies that may
include, but are not limited to, the following supports: assessment to ensure suitability of
housing, accompanying an individual to look at housing, filling out applications and rental
agreements, meeting with landlords, helping with Section 8 or other program applications,
helping to develop a budget, obtaining furniture and household goods, if necessary, and
assisting with any problems that may arise with housing.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2025 Supplement, section 256B.0701, subdivision 9, is amended
to read:

Subd. 9.

Provider qualifications and duties.

A provider is eligible for reimbursement
under this section only if the provider:

(1) is confirmed by the commissioner as an eligible provider after a pre-enrollment risk
assessment under subdivision 10;

(2) is enrolled as a medical assistance Minnesota health care program provider and meets
all applicable provider standards and requirements;

deleted text begin (3) demonstrates compliance with federal and state laws and policies for housing
stabilization services as determined by the commissioner;
deleted text end

new text begin (3) demonstrates compliance with federal and state laws and policies for recuperative
care services as determined by the commissioner;
new text end

(4) complies with background study requirements under chapter 245C and maintains
documentation of background study requests and results;

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

(6) ensures all controlling individuals and employees of the agency complete annual
vulnerable adult training;

(7) completes compliance training as required under subdivision 11; and

(8) complies with the habitability inspection requirements in subdivision 13.

Sec. 9.

Minnesota Statutes 2024, section 256L.03, subdivision 1, is amended to read:

Subdivision 1.

Covered health services.

(a) "Covered health services" means the health
services reimbursed under chapter 256B, with the exception of special education services,
home care nursing services, nonemergency medical transportation services, personal care
assistance and case management services, community first services and supports under
section 256B.85, behavioral health home services under section 256B.0757, deleted text begin housing
stabilization services under section 256B.051, deleted text end and nursing home or intermediate care facilities
services.

(b) Covered health services shall be expanded as provided in this section.

(c) For the purposes of covered health services under this section, "child" means an
individual younger than 19 years of age.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10. new text begin HOUSING STABILIZATION SERVICES REDESIGN.
new text end

new text begin Subdivision 1. new text end

new text begin Direction to the commissioner. new text end

new text begin The commissioner of human services
must develop recommendations for establishing a program to support individuals
experiencing or at risk of homelessness to obtain and maintain safe and stable housing.
new text end

new text begin Subd. 2. new text end

new text begin Recommendations. new text end

new text begin In developing recommendations, the commissioner must:
new text end

new text begin (1) prioritize establishing a housing services benefit specifically for Minnesota Tribal
governments and urban Indian organizations;
new text end

new text begin (2) utilize evidence-based and promising practices to prevent and reduce homelessness;
new text end

new text begin (3) identify gaps in available housing services and supports and not duplicate any existing
programs;
new text end

new text begin (4) identify expected outcomes and measures to track effectiveness of the proposed
program;
new text end

new text begin (5) incorporate tools and system changes to protect program integrity and prevent fraud,
waste, and abuse; and
new text end

new text begin (6) include statutory changes and state appropriations to implement the proposed program.
new text end

new text begin Subd. 3. new text end

new text begin Community engagement. new text end

new text begin In developing recommendations, the commissioner
must consult with the legislature, other state agencies, Tribal Nations, and community
partners, including counties, providers, health plans, and people experiencing or at risk of
homelessness.
new text end

new text begin Subd. 4. new text end

new text begin Legislative report. new text end

new text begin By September 15, 2027, the commissioner must submit to
the chairs and ranking minority members of the legislative committees with jurisdiction
over health and human services policy and finance a report including final recommendations
to establish both a housing services benefit specifically for Tribal governments and urban
Indian organizations and a statewide housing services benefit.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 11. new text begin DIRECTION TO THE COMMISSIONER OF HUMAN SERVICES;
ONETIME RATE ADD-ON FOR PREPAYMENT REVIEW DELAYS.
new text end

new text begin The commissioner of human services must implement a onetime rate add-on for all
fee-for-service providers impacted by the medical assistance payment delays that occurred
in December 2025 and January 2026 as a result of the commissioner's implementation of
prepayment review. Only providers who are not under active fraud investigations or payment
withholds under Minnesota Statutes, section 256B.064, are eligible for a rate add-on under
this section. The amount of the rate add-on is equal to the costs to the provider as determined
by the commissioner of short-term borrowing for four weeks to maintain operations during
the medical assistance fee-for-services payment delay, or ten percent of the value of the
provider's actual delayed payments, whichever is greater. The commissioner must implement
the rate add-on on June 30, 2026, or upon federal approval, whichever is later.
new text end

Sec. 12. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2024, section 256B.051, subdivisions 1, 4, and 7, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2025 Supplement, section 256B.051, subdivisions 2, 3, 5, 6, 6a,
6b, 8, 9, and 10, new text end new text begin are repealed.
new text end

new text begin (c) new text end new text begin Laws 2025, First Special Session chapter 3, article 18, section 3, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

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

APPENDIX

Repealed Minnesota Statutes: S3755-2

256B.051 HOUSING STABILIZATION SERVICES.

Subdivision 1.

Purpose.

Housing stabilization services are established to provide housing stabilization services to an individual with a disability that limits the individual's ability to obtain or maintain stable housing. The services support an individual's transition to housing in the community and increase long-term stability in housing, to avoid future periods of being at risk of homelessness or institutionalization.

Subd. 2.

Definitions.

(a) For the purposes of this section, the terms defined in this subdivision have the meanings given.

(b) "Agency" means the legal entity that is enrolled with Minnesota health care programs as a medical assistance provider according to Minnesota Rules, part 9505.0195, to provide housing stabilization services and that has the legal responsibility to ensure that its employees carry out the responsibilities defined in this section.

(c) "At-risk of homelessness" means (1) an individual that is faced with a set of circumstances likely to cause the individual to become homeless, or (2) an individual previously homeless, who will be discharged from a correctional, medical, mental health, or treatment center, who lacks sufficient resources to pay for housing and does not have a permanent place to live.

(d) "Commissioner" means the commissioner of human services.

(e) "Employee of an agency" or "employee" means any person who is employed by an agency temporarily, part time, or full time and who performs work for at least 80 hours in a year for that agency in Minnesota. Employee does not include an independent contractor.

(f) "Homeless" means an individual or family lacking a fixed, adequate nighttime residence.

(g) "Individual with a disability" means:

(1) an individual who is aged, blind, or disabled as determined by the criteria used by the title 11 program of the Social Security Act, United States Code, title 42, section 416, paragraph (i), item (1); or

(2) an individual who meets a category of eligibility under section 256D.05, subdivision 1, paragraph (a), clause (1), (4), (5) to (8), or (13).

(h) "Institution" means a setting as defined in section 256B.0621, subdivision 2, clause (3), and the Minnesota Security Hospital as defined in section 253.20.

Subd. 3.

Eligibility.

An individual with a disability is eligible for housing stabilization services if the individual:

(1) is 18 years of age or older;

(2) is enrolled in medical assistance;

(3) has income at or below 150 percent of the federal poverty level;

(4) has an assessment of functional need that determines a need for services due to limitations caused by the individual's disability;

(5) resides in or plans to transition to a community-based setting as defined in Code of Federal Regulations, title 42, section 441.301 (c); and

(6) has housing instability evidenced by:

(i) being homeless or at-risk of homelessness;

(ii) being in the process of transitioning from, or having transitioned in the past six months from, an institution or licensed or registered setting;

(iii) being eligible for waiver services under chapter 256S or section 256B.092 or 256B.49; or

(iv) having been identified by a long-term care consultation under section 256B.0911 as at risk of institutionalization.

Subd. 4.

Assessment requirements.

(a) An individual's assessment of functional need must be conducted by one of the following methods:

(1) an assessor according to the criteria established in section 256B.0911, subdivisions 17 to 21, 23, 24, and 29 to 31, using a format established by the commissioner;

(2) documented need for services as verified by a professional statement of need as defined in section 256I.03, subdivision 12; or

(3) according to the continuum of care coordinated assessment system established in Code of Federal Regulations, title 24, section 578.3, using a format established by the commissioner.

(b) An individual must be reassessed within one year of initial assessment, and annually thereafter.

Subd. 5.

Housing stabilization services.

(a) Housing stabilization services include housing transition services, housing and tenancy sustaining services, housing consultation services, and housing transition costs.

(b) Housing transition services are defined as:

(1) tenant screening and housing assessment;

(2) assistance with the housing search and application process;

(3) identifying resources to cover onetime moving expenses;

(4) ensuring a new living arrangement is safe and ready for move-in;

(5) assisting in arranging for and supporting details of a move; and

(6) developing a housing support crisis plan.

(c) Housing and tenancy sustaining services include:

(1) prevention and early identification of behaviors that may jeopardize continued stable housing;

(2) education and training on roles, rights, and responsibilities of the tenant and the property manager;

(3) coaching to develop and maintain key relationships with property managers and neighbors;

(4) advocacy and referral to community resources to prevent eviction when housing is at risk;

(5) assistance with housing recertification process;

(6) coordination with the tenant to regularly review, update, and modify the housing support and crisis plan; and

(7) continuing training on being a good tenant, lease compliance, and household management.

(d) Housing consultation services assist an individual with developing a person-centered plan when the individual is not eligible to receive person-centered planning through any other service.

(e) Housing transition costs are available to persons transitioning from a provider-controlled setting to the person's own home and include:

(1) security deposits; and

(2) essential furnishings and supplies.

Subd. 6.

Agency qualifications and duties.

An agency is eligible for reimbursement under this section only if the agency:

(1) is confirmed by the commissioner as an eligible provider after a pre-enrollment risk assessment under subdivision 6a;

(2) is enrolled as a medical assistance Minnesota health care program provider and meets all applicable provider standards and requirements;

(3) demonstrates compliance with federal and state laws and policies for housing stabilization services as determined by the commissioner;

(4) complies with background study requirements under chapter 245C and maintains documentation of background study requests and results;

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

(6) directly provides housing stabilization services using employees of the agency and not by using a subcontractor or reporting agent;

(7) ensures all controlling individuals and employees of the agency complete annual vulnerable adult training; and

(8) completes compliance training as required under subdivision 6b.

Subd. 6a.

Pre-enrollment risk assessment.

(a) Prior to enrolling a housing stabilization services agency, the commissioner must complete a pre-enrollment risk assessment of the agency seeking to enroll to confirm the agency's eligibility and the agency's ability to meet the requirements of this section. In completing this assessment, the commissioner must consider:

(1) the potential agency's history of performing services similar to those required by this section;

(2) whether the services require the potential agency to perform duties at a significantly increased scale and, if so, whether the potential agency has the capability and organizational capacity to do so;

(3) the potential agency's financial information and internal controls; and

(4) the potential agency's compliance with other state and federal requirements, including but not limited to debarment and suspension status, and standing with the secretary of state, if applicable.

(b) At any time when completing the pre-enrollment risk assessment, if the commissioner determines that the potential agency does not have a history of performing similar duties, the potential agency does not demonstrate the capability and capacity to perform the duties at the scale and pace required, or the results of the financial information review raise concern, then the commissioner may deem the potential agency ineligible and deny or rescind enrollment. A potential agency may appeal a decision regarding its eligibility in writing within 30 business days. The commissioner must notify each potential agency of the commissioner's final decision regarding its eligibility.

(c) This subdivision is effective July 1, 2025. Any housing stabilization services provider enrolled before July 1, 2025, that billed for services on or after January 1, 2024, must complete the pre-enrollment risk assessment on a schedule determined by the commissioner and no later than July 1, 2026, to remain eligible. Any provider enrolled before July 1, 2025, that has not billed for services on or after January 1, 2024, must complete the pre-enrollment risk assessment to remain eligible.

Subd. 6b.

Requirements for provider enrollment.

(a) Effective January 1, 2027, to enroll as a housing stabilization services provider agency, an agency must require all owners of the agency who are active in the day-to-day management and operations of the agency and managerial and supervisory employees to complete compliance training before applying for enrollment and every three years thereafter. Mandatory compliance training format and content must be determined by the commissioner and must include the following topics:

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

(2) enrollment requirements;

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

(4) fair labor standards;

(5) workplace safety requirements; and

(6) recent changes in service requirements.

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

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

Subd. 7.

Housing support supplemental service rates.

Supplemental service rates for individuals in settings according to sections 144D.025, 256I.04, subdivision 3, paragraph (a), clause (3), and 256I.05, subdivision 1g, shall be reduced by one-half over a two-year period. This reduction only applies to supplemental service rates for individuals eligible for housing stabilization services under this section.

Subd. 8.

Documentation requirements.

(a) An agency must document delivery of all services. The agency must collect and maintain the required information either electronically or in paper form and must produce the documents containing the information upon request by the commissioner.

(b) Documentation of a delivered service must be in English and must be legible according to the standard of a reasonable person.

(c) If the service is reimbursed at an hourly or specified minute-based rate, each documentation of the provision of a service, unless otherwise specified, must include:

(1) the full name of the service recipient;

(2) the date the documentation occurred;

(3) the day, month, and year the service was provided;

(4) the start and stop times with a.m. and p.m. designations, except for housing consultation services;

(5) the service name or description of the service provided for each date of service;

(6) the name, signature, and title, if any, of the employee of the agency that provided the service. If the service is provided by multiple employees, the agency may designate an employee responsible for verifying services and completing the documentation required by this paragraph;

(7) the signature of the service recipient and a statement that the recipient's signature is verification of the accuracy of the service documentation; and

(8) a statement that it is a federal crime to provide false information on housing stabilization services billings for medical assistance payments.

Subd. 9.

Service limits.

(a) Housing stabilization services must not exceed the limits in clauses (1) to (4):

(1) housing transition services are limited to 100 hours annually per recipient and are not billable when a recipient is concurrently receiving housing and tenancy sustaining services;

(2) housing and tenancy sustaining services are limited to 100 hours annually per recipient and are not billable when a recipient is concurrently receiving housing transition services;

(3) housing consultation services are available once annually per recipient and must be provided in person. Additional sessions of housing consultation services may be authorized by the commissioner if the recipient becomes homeless, the recipient experiences a significant change in condition that impacts the recipient's housing, or the recipient requests an update or change to the recipient's plan; and

(4) housing transition costs are limited to $3,000 annually.

(b) Remote support cannot be used for more than a total of 20 percent of all housing transition services and housing and tenancy sustaining services provided to a recipient in a calendar month and is limited to audio-only and accessible video-based platforms. A recipient may refuse, stop, or suspend the use of remote support at any time.

Subd. 10.

Service limit exceptions.

If a recipient requires services exceeding the limits described in subdivision 9, a provider may request authorization for additional hours in a format prescribed by the commissioner. Requests must specify the number of additional hours being requested to meet the recipient's needs and include sufficient documentation to justify the increase to billable hours. Exceptions to service limits are not allowed on the sole basis of changing providers and are limited to recipients who:

(1) become or are at risk of becoming homeless or institutionalized due to a significant change in condition;

(2) have a history of long-term homelessness;

(3) have a history of domestic violence; or

(4) have a criminal background that is a barrier to obtaining housing.

Repealed Minnesota Session Laws: S3755-2

Laws 2025, First Special Session chapter 3, article 18, section 3

Sec. 3. new text begin DIRECTION TO COMMISSIONER; INDIAN HEALTH SERVICE ENCOUNTER RATE. new text end

new text begin The commissioner of human services must submit a state plan amendment to the Centers for Medicare and Medicaid Services authorizing housing services as a new service category eligible for reimbursement at the outpatient per-day rate approved by the Indian Health Service. This reimbursement is limited to services provided by facilities of the Indian Health Service and facilities owned or operated by a Tribe or Tribal organization. For the purposes of this section, "housing services" means housing stabilization services as described in Minnesota Statutes, section 256B.051, subdivision 5, paragraphs (a) to (d). new text end