SF 3861

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

Posted on 03/24/2026 10:43 a.m.

A bill for an act
relating to human services; modifying medical assistance provider enrollment
requirements for high-risk providers and certain home and community-based
providers; making technical corrections; requiring compliance training for high-risk
medical assistance providers; requiring disclosure of the use of consultants to
prepare certain license applications; requiring commissioner of human services to
release unredacted initial Optum reports; amending Minnesota Statutes 2024,
sections 142B.01, subdivision 8; 245A.02, subdivision 5a; 245D.081, subdivision
3; 256B.073, subdivision 2; 256B.0949, subdivision 17; 256B.4912, subdivisions
12, 14, 15, by adding a subdivision; Minnesota Statutes 2025 Supplement, sections
245A.04, subdivisions 1, 7; 245A.05; 256B.04, subdivision 21; 256B.051,
subdivision 6; 256B.0701, subdivision 9; 256B.0759, subdivision 4; 256B.0949,
subdivision 16; 256B.4912, subdivision 1; proposing coding for new law in
Minnesota Statutes, chapter 256B; repealing Minnesota Statutes 2025 Supplement,
sections 256B.051, subdivision 6b; 256B.0701, subdivision 11.

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

Section 1.

Minnesota Statutes 2024, section 142B.01, subdivision 8, is amended to read:

Subd. 8.

Controlling individual.

(a) "Controlling individual" means an owner of a
program or service provider licensed under this chapter and the following individuals, if
applicable:

(1) each officer of the organization, including the chief executive officer and chief
financial officer;

(2) the individual designated as the authorized agent under section 142B.10, subdivision
1, paragraph (b);

(3) the individual designated as the compliance officer under section deleted text begin 256B.04, deleted text begin subdivision
deleted text end 21, paragraph (g) deleted text end new text begin 256B.044, subdivision 7, paragraph (b) new text end ;

(4) each managerial official whose responsibilities include the direction of the
management or policies of a program;

(5) the individual designated as the primary provider of care for a special family child
care program under section 142B.41, subdivision 4, paragraph (d); and

(6) the president and treasurer of the board of directors of a nonprofit corporation.

(b) Controlling individual does not include:

(1) a bank, savings bank, trust company, savings association, credit union, industrial
loan and thrift company, investment banking firm, or insurance company unless the entity
operates a program directly or through a subsidiary;

(2) an individual who is a state or federal official, or state or federal employee, or a
member or employee of the governing body of a political subdivision of the state or federal
government that operates one or more programs, unless the individual is also an officer,
owner, or managerial official of the program; receives remuneration from the program; or
owns any of the beneficial interests not excluded in this subdivision;

(3) an individual who owns less than five percent of the outstanding common shares of
a corporation:

(i) whose securities are exempt under section 80A.45, clause (6); or

(ii) whose transactions are exempt under section 80A.46, clause (2);

(4) an individual who is a member of an organization exempt from taxation under section
290.05, unless the individual is also an officer, owner, or managerial official of the program
or owns any of the beneficial interests not excluded in this subdivision. This clause does
not exclude from the definition of controlling individual an organization that is exempt from
taxation; or

(5) an employee stock ownership plan trust, or a participant or board member of an
employee stock ownership plan, unless the participant or board member is a controlling
individual according to paragraph (a).

(c) For purposes of this subdivision, "managerial official" means an individual who has
the decision-making authority related to the operation of the program, and the responsibility
for the ongoing management of or direction of the policies, services, or employees of the
program. A site director who has no ownership interest in the program is not considered to
be a managerial official for purposes of this definition.

Sec. 2.

Minnesota Statutes 2024, section 245A.02, subdivision 5a, is amended to read:

Subd. 5a.

Controlling individual.

(a) "Controlling individual" means an owner of a
program or service provider licensed under this chapter and the following individuals, if
applicable:

(1) each officer of the organization, including the chief executive officer and chief
financial officer;

(2) the individual designated as the authorized agent under section 245A.04, subdivision
1, paragraph (b);

(3) the individual designated as the compliance officer under section deleted text begin 256B.04, subdivision
21, paragraph (g) deleted text end new text begin 256B.044, subdivision 7, paragraph (b) new text end ;

(4) each managerial official whose responsibilities include the direction of the
management or policies of a program; and

(5) the president and treasurer of the board of directors of a nonprofit corporation.

(b) Controlling individual does not include:

(1) a bank, savings bank, trust company, savings association, credit union, industrial
loan and thrift company, investment banking firm, or insurance company unless the entity
operates a program directly or through a subsidiary;

(2) an individual who is a state or federal official, or state or federal employee, or a
member or employee of the governing body of a political subdivision of the state or federal
government that operates one or more programs, unless the individual is also an officer,
owner, or managerial official of the program, receives remuneration from the program, or
owns any of the beneficial interests not excluded in this subdivision;

(3) an individual who owns less than five percent of the outstanding common shares of
a corporation:

(i) whose securities are exempt under section 80A.45, clause (6); or

(ii) whose transactions are exempt under section 80A.46, clause (2);

(4) an individual who is a member of an organization exempt from taxation under section
290.05, unless the individual is also an officer, owner, or managerial official of the program
or owns any of the beneficial interests not excluded in this subdivision. This clause does
not exclude from the definition of controlling individual an organization that is exempt from
taxation; or

(5) an employee stock ownership plan trust, or a participant or board member of an
employee stock ownership plan, unless the participant or board member is a controlling
individual according to paragraph (a).

(c) For purposes of this subdivision, "managerial official" means an individual who has
the decision-making authority related to the operation of the program, and the responsibility
for the ongoing management of or direction of the policies, services, or employees of the
program. A site director who has no ownership interest in the program is not considered to
be a managerial official for purposes of this definition.

Sec. 3.

Minnesota Statutes 2025 Supplement, section 245A.04, subdivision 1, is amended
to read:

Subdivision 1.

Application for licensure.

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

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

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

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

(c) An applicant or license holder must have a policy that prohibits license holders,
employees, subcontractors, and volunteers, when directly responsible for persons served
by the program, from abusing prescription medication or being in any manner under the
influence of a chemical that impairs the individual's ability to provide services or care. The
license holder must train employees, subcontractors, and volunteers about the program's
drug and alcohol policy before the employee, subcontractor, or volunteer has direct contact,
as defined in section 245C.02, subdivision 11, with a person served by the program.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(iii) recovery of payments made for the service;

(iv) disenrollment in the public payment program; or

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

new text begin (j) An applicant or license holder who acknowledges under paragraph (i) that the applicant
or license holder elects to receive any publicly funded reimbursement from the commissioner
for services provided under the license that are designated by the commissioner as high-risk
under section 256B.044, subdivision 1, must provide an attestation with the notarized
signature of the applicant or authorized agent stating whether the applicant or authorized
agent received from an unaffiliated business or consultant any assistance preparing:
new text end

new text begin (1) the application;
new text end

new text begin (2) the renewal;
new text end

new text begin (3) any documentation or written policies submitted with the application;
new text end

new text begin (4) any documentation or written policies submitted with the renewal; or
new text end

new text begin (5) any documentation or written policies maintained as a requirement of licensure or
enrollment as a medical assistance provider.
new text end

Sec. 4.

Minnesota Statutes 2025 Supplement, section 245A.04, subdivision 7, is amended
to read:

Subd. 7.

Grant of license; license extension.

(a) If the commissioner determines that
the program complies with all applicable rules and laws, the commissioner shall issue a
license consistent with this section or, if applicable, a temporary change of ownership license
under section 245A.043. At minimum, the license shall state:

(1) the name of the license holder;

(2) the address of the program;

(3) the effective date and expiration date of the license;

(4) the type of license and the specific service the license holder is licensed to provide;

(5) the maximum number and ages of persons that may receive services from the program;
and

(6) any special conditions of licensure.

(b) The commissioner may issue a license for a period not to exceed two years if:

(1) the commissioner is unable to conduct the observation required by subdivision 4,
paragraph (a), clause (3), because the program is not yet operational;

(2) certain records and documents are not available because persons are not yet receiving
services from the program; and

(3) the applicant complies with applicable laws and rules in all other respects.

(c) A decision by the commissioner to issue a license does not guarantee that any person
or persons will be placed or cared for in the licensed program.

(d) Except as provided in paragraphs (i) and (j), the commissioner shall not issue a
license if the applicant, license holder, or an affiliated controlling individual has:

(1) been disqualified and the disqualification was not set aside and no variance has been
granted;

(2) been denied a license under this chapter or chapter 142B within the past two years;

(3) had a license issued under this chapter or chapter 142B revoked within the past five
years; or

(4) failed to submit the information required of an applicant under subdivision 1,
paragraph (f), (g), deleted text begin or deleted text end (h) new text begin , or (j) new text end , after being requested by the commissioner.

When a license issued under this chapter or chapter 142B is revoked, the license holder
and each affiliated controlling individual with a revoked license may not hold any license
under chapter 245A for five years following the revocation, and other licenses held by the
applicant or license holder or licenses affiliated with each controlling individual shall also
be revoked.

(e) Notwithstanding paragraph (d), the commissioner may elect not to revoke a license
affiliated with a license holder or controlling individual that had a license revoked within
the past five years if the commissioner determines that (1) the license holder or controlling
individual is operating the program in substantial compliance with applicable laws and rules
and (2) the program's continued operation is in the best interests of the community being
served.

(f) Notwithstanding paragraph (d), the commissioner may issue a new license in response
to an application that is affiliated with an applicant, license holder, or controlling individual
that had an application denied within the past two years or a license revoked within the past
five years if the commissioner determines that (1) the applicant or controlling individual
has operated one or more programs in substantial compliance with applicable laws and rules
and (2) the program's operation would be in the best interests of the community to be served.

(g) In determining whether a program's operation would be in the best interests of the
community to be served, the commissioner shall consider factors such as the number of
persons served, the availability of alternative services available in the surrounding
community, the management structure of the program, whether the program provides
culturally specific services, and other relevant factors.

(h) The commissioner shall not issue or reissue a license under this chapter if an individual
living in the household where the services will be provided as specified under section
245C.03, subdivision 1, has been disqualified and the disqualification has not been set aside
and no variance has been granted.

(i) Pursuant to section 245A.07, subdivision 1, paragraph (b), when a license issued
under this chapter has been suspended or revoked and the suspension or revocation is under
appeal, the program may continue to operate pending a final order from the commissioner.
If the license under suspension or revocation will expire before a final order is issued, a
temporary provisional license may be issued provided any applicable license fee is paid
before the temporary provisional license is issued.

(j) Notwithstanding paragraph (i), when a revocation is based on the disqualification of
a controlling individual or license holder, and the controlling individual or license holder
is ordered under section 245C.17 to be immediately removed from direct contact with
persons receiving services or is ordered to be under continuous, direct supervision when
providing direct contact services, the program may continue to operate only if the program
complies with the order and submits documentation demonstrating compliance with the
order. If the disqualified individual fails to submit a timely request for reconsideration, or
if the disqualification is not set aside and no variance is granted, the order to immediately
remove the individual from direct contact or to be under continuous, direct supervision
remains in effect pending the outcome of a hearing and final order from the commissioner.

(k) Unless otherwise specified by statute, all licenses issued under this chapter expire
at 12:01 a.m. on the day after the expiration date stated on the license. A license holder must
comply with the requirements in section 245A.10 and be reissued a new license to operate
the program or the program must not be operated after the expiration date. Adult foster care,
family adult day services, child foster residence setting, and community residential services
license holders must apply for and be granted a new license to operate the program or the
program must not be operated after the expiration date. Upon implementation of the provider
licensing and reporting hub, licenses may be issued each calendar year.

(l) The commissioner shall not issue or reissue a license under this chapter if it has been
determined that a Tribal licensing authority has established jurisdiction to license the program
or service.

(m) The commissioner of human services may coordinate and share data with the
commissioner of children, youth, and families to enforce this section.

(n) For substance use disorder treatment programs, for the purposes of paragraph (a),
clause (5), the maximum number of persons who may receive services from the program
includes persons served at satellite locations.

Sec. 5.

Minnesota Statutes 2025 Supplement, section 245A.05, is amended to read:

245A.05 DENIAL OF APPLICATION.

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

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

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

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

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

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

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

(7) fails to comply with section 245A.04, subdivision 1, paragraph (f) deleted text begin or deleted text end new text begin , new text end (g) new text begin , or (j) new text end ;

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

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

(10) is prohibited from holding a license according to section 245.095; or

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

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

Sec. 6.

Minnesota Statutes 2024, section 245D.081, subdivision 3, is amended to read:

Subd. 3.

Program management and oversight.

(a) The license holder must designate
a managerial staff person or persons to provide program management and oversight of the
services provided by the license holder. The designated manager is responsible for the
following:

(1) maintaining a current understanding of the licensing requirements sufficient to ensure
compliance throughout the program as identified in section 245A.04, subdivision 1, paragraph
(e), and when applicable, as identified in section deleted text begin 256B.04, subdivision 21, paragraph (g) deleted text end new text begin
256B.044, subdivision 7 new text end ;

(2) ensuring the duties of the designated coordinator are fulfilled according to the
requirements in subdivision 2;

(3) ensuring the program implements corrective action identified as necessary by the
program following review of incident and emergency reports according to the requirements
in section 245D.11, subdivision 2, clause (7). An internal review of incident reports of
alleged or suspected maltreatment must be conducted according to the requirements in
section 245A.65, subdivision 1, paragraph (b);

(4) evaluation of satisfaction of persons served by the program, the person's legal
representative, if any, and the case manager, with the service delivery and progress toward
accomplishing outcomes identified in sections 245D.07 and 245D.071, and ensuring and
protecting each person's rights as identified in section 245D.04;

(5) ensuring staff competency requirements are met according to the requirements in
section 245D.09, subdivision 3, and ensuring staff orientation and training is provided
according to the requirements in section 245D.09, subdivisions 4, 4a, and 5;

(6) ensuring corrective action is taken when ordered by the commissioner and that the
terms and conditions of the license and any variances are met; and

(7) evaluating the information identified in clauses (1) to (6) to develop, document, and
implement ongoing program improvements.

(b) The designated manager must be competent to perform the duties as required and
must minimally meet the education and training requirements identified in subdivision 2,
paragraph (b), and have a minimum of three years of supervisory level experience in a
program that provides care or education to vulnerable adults or children.

Sec. 7.

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

Subd. 21.

Provider enrollment.

deleted text begin (a) deleted text end The commissioner shall enroll providers and conduct
screening activities as required by Code of Federal Regulations, title 42, section 455, subpart
E new text begin , and sections 256B.044 to 256B.0445 new text end .

deleted text begin 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 deleted text end deleted text begin 245C deleted text end deleted text begin ,
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).
deleted text end

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

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

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

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

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

deleted text begin (c) The commissioner shall conduct revalidation as follows:
deleted text end

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

deleted text begin (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
deleted text end

deleted text begin (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.
deleted text end

deleted text begin (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.
deleted text end

deleted text begin (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.
deleted text end

deleted text begin (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.
deleted text end

deleted text begin (g) An enrolled provider that is also licensed by the commissioner under chapter deleted text end deleted text begin 245A deleted text end deleted text begin ,
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 deleted text end deleted text begin 144G deleted text end deleted text begin 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:
deleted text end

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

deleted text begin (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);
deleted text end

deleted text begin (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;
deleted text end

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

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

deleted text begin (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.
deleted text end

deleted text begin 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.
deleted text end

deleted text begin (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.
deleted text end

deleted text begin (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:
deleted text end

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

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

deleted text begin (3) serves primarily a pediatric population.
deleted text end

deleted text begin (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 deleted text end deleted text begin 14 deleted text end deleted text begin .
The commissioner's designations are not subject to administrative appeal.
deleted text end

deleted text begin (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.
deleted text end

deleted text begin (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.
deleted text end

deleted text begin (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.
deleted text end

deleted text begin (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.
deleted text end

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

Sec. 8.

new text begin [256B.044] PROVIDER ENROLLMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Designating categorical risk levels. new text end

new text begin (a) The commissioner shall publish
in the Minnesota Health Care Program Provider Manual a list of provider types designated
"limited-risk," "moderate-risk," or "high-risk," based on the criteria and standards used by
the Centers for Medicare and Medicaid Services (CMS) to designate Medicare providers
in Code of Federal Regulations, title 42, section 424.518.
new text end

new text begin (b) The list and criteria are not subject to the requirements of chapter 14, and section
14.386 does not apply.
new text end

new text begin (c) The commissioner's designations are not subject to administrative appeal.
new text end

new text begin Subd. 2. new text end

new text begin Service location enrollment. new text end

new text begin A provider must enroll each provider-controlled
location where direct services are provided.
new text end

new text begin Subd. 3. new text end

new text begin Incomplete provider enrollment applications. new text end

new text begin The commissioner may deny
a provider's incomplete enrollment application if a provider fails to respond to the
commissioner's request for additional information within 60 days of the request.
new text end

new text begin Subd. 4. new text end

new text begin Required background studies. new text end

new text begin (a) 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 applying for enrollment under
section 256B.04, subdivision 21. The background study requirement may be satisfied if the
commissioner conducted a fingerprint-based background study on the provider that included
a review of databases in section 245C.08, subdivision 1, paragraph (a), clauses (1) to (5).
new text end

new text begin (b) As a condition of enrollment in medical assistance, the commissioner must 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 CMS that a provider is designated high-risk.
new text end

new text begin Subd. 5. new text end

new text begin Surety bonds. new text end

new text begin (a) The commissioner may require a provider to purchase a
surety bond as a condition of initial enrollment, revalidation, reenrollment, reinstatement,
or continued enrollment if:
new text end

new text begin (1) the provider fails to demonstrate financial viability;
new text end

new text begin (2) the commissioner determines there is significant evidence of or potential for fraud
and abuse by the provider; or
new text end

new text begin (3) the provider or category of providers is designated high-risk pursuant to subdivision
1 and Code of Federal Regulations, title 42, section 455.450.
new text end

new text begin (b) 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.
new text end

new text begin (c) This subdivision does not apply if the provider currently maintains a surety bond
under the requirements in section 256B.051, 256B.0659, 256B.0701, or 256B.85.
new text end

new text begin Subd. 6. new text end

new text begin Required permission to conduct on-site inspection. new text end

new text begin As a condition of
enrollment in medical assistance, the commissioner shall require that a provider designated
moderate-risk or high-risk by CMS or the commissioner permit CMS, CMS's agents, or
CMS's designated contractors and the state agency, the state agency's agents, or the state
agency's designated contractors to conduct unannounced on-site inspections of any provider
location.
new text end

new text begin Subd. 7. new text end

new text begin Compliance programs. new text end

new text begin (a) 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
CMS.
new text end

new text begin (b) If an enrolled provider is required by the commissioner or by law to designate an
individual as the provider's compliance officer, the compliance officer must:
new text end

new text begin (1) develop policies and procedures to ensure adherence to medical assistance laws and
regulations and to prevent inappropriate claims submissions;
new text end

new text begin (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);
new text end

new text begin (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;
new text end

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

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

new text begin (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.
new text end

new text begin Subd. 8. new text end

new text begin Correspondence and notification. new text end

new text begin The commissioner may deliver
correspondence and notifications, including notifications of termination and other actions,
electronically to a provider's MN-ITS mailbox. This subdivision does not apply to
correspondence and notifications related to background studies.
new text end

Sec. 9.

new text begin [256B.0441] PROVIDER REVALIDATION.
new text end

new text begin Subdivision 1. new text end

new text begin Provider revalidation schedule. new text end

new text begin The commissioner shall revalidate:
new text end

new text begin (1) each provider at least once every five years;
new text end

new text begin (2) each personal care assistance agency, community first services and supports (CFSS)
provider-agency, and CFSS financial management services provider at least once every
three years;
new text end

new text begin (3) each early intensive developmental and behavioral intervention agency at least once
every three years; and
new text end

new text begin (4) at the commissioner's discretion, any medical-assistance-only provider type the
commissioner deems high-risk under section 256B.044, subdivision 1.
new text end

new text begin Subd. 2. new text end

new text begin Revalidation procedures. new text end

new text begin The commissioner shall conduct revalidation as
follows:
new text end

new text begin (1) provide 30 days' notice of the revalidation due date including instructions for
revalidation and a list of materials the provider must submit;
new text end

new text begin (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
new text end

new text begin (3) if a provider fails to remedy a deficiency within the 30-day time period, give 60 days'
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.
new text end

Sec. 10.

new text begin [256B.0442] PROVIDER ENROLLMENT SUSPENSIONS AND
TERMINATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Commissioner's general authority to suspend individual provider's
enrollment. new text end

new text begin (a) 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.
new text end

new text begin (b) The commissioner's decision to suspend the provider is not subject to an administrative
appeal.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner's authority to revoke enrollment of certain providers for
lack of documentation. new text end

new text begin (a) 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 the
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.
new text end

new text begin (b) Nothing in this subdivision limits the authority of the commissioner to sanction a
provider under section 256B.064.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner's duty to terminate provider enrollment. new text end

new text begin (a) Except as
provided in paragraph (b), the commissioner must 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.
new text end

new text begin (b) The commissioner may exempt a rehabilitation agency from termination or denial
that would otherwise be required under paragraph (a) if the agency:
new text end

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

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

new text begin (3) serves primarily a pediatric population.
new text end

Sec. 11.

new text begin [256B.0443] PROVIDER PAYMENT WITHHOLDS UPON INITIAL
ENROLLMENT.
new text end

new text begin (a) If the commissioner or the Centers for Medicare and Medicaid Services designates
a provider type as high-risk, the commissioner may withhold payment from providers within
that category upon initial enrollment for a 90-day period.
new text end

new text begin (b) The withholding for each provider must begin on the date of the first submission of
a claim.
new text end

Sec. 12.

new text begin [256B.0444] ADDITIONAL PROVIDER ENROLLMENT REQUIREMENTS
FOR HIGH-RISK PROVIDERS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin This section applies to any agency that provides a service
designated by the commissioner as high-risk under section 256B.044, subdivision 1. For
purposes of this section, "agency" means the legal entity that is applying to be or is enrolled
with Minnesota health care programs as a medical assistance provider according to Minnesota
Rules, part 9505.0195.
new text end

new text begin Subd. 2. new text end

new text begin Mandatory training compliance. new text end

new text begin (a) Effective January 1, 2027, before applying
for enrollment or reenrollment as a medical assistance provider, an agency applying to
provide services designated by the commissioner as high-risk 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. All individuals
who must complete training under this subdivision must repeat the training prior to
revalidation of the agency as a medical assistance provider.
new text end

new text begin (b) New owners active in day-to-day management and operations of the agency and new
managerial and supervisory employees of the agency must complete compliance training
under this subdivision within 30 calendar days of becoming an owner of or employed by
the agency and prior to conducting any management and operations activities for the agency.
If an individual moves to another agency providing the same service 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 chooses not to repeat the compliance
training, the individual must provide the agency with documentation proving the individual
completed the compliance training within the provider revalidation schedule for the relevant
provider type as determined by the commissioner under section 256B.0441.
new text end

new text begin (c) The commissioner must determine the format and content of the compliance training.
The training must include the following topics, adapted as necessary for each provider type
subject to the requirements of this subdivision:
new text end

new text begin (1) state and federal program billing, documentation, and service delivery requirements;
new text end

new text begin (2) enrollment requirements;
new text end

new text begin (3) provider program integrity, including fraud prevention, detection, and penalties;
new text end

new text begin (4) fair labor standards;
new text end

new text begin (5) workplace safety requirements; and
new text end

new text begin (6) recent changes in service requirements.
new text end

new text begin Subd. 3. new text end

new text begin Individual provider number. new text end

new text begin (a) Effective January 1, 2027, all individuals
subject to a background study as a result of being employed by or an owner of a high-risk
agency must enroll individually as a medical assistance provider.
new text end

new text begin (b) The commissioner must issue a unique Minnesota provider identifier to each
individual who satisfies the background study requirements, satisfies the individual
enrollment requirements, and does not have either a national provider identifier or a unique
Minnesota provider identifier. The commissioner must ensure that no individual is issued
multiple unique Minnesota provider identifiers. If the commissioner mistakenly issues
multiple unique Minnesota provider identifiers to the same individual, the commissioner
must provide a means for the numbers to be consolidated.
new text end

new text begin (c) If an individual provides false or misleading information to the commissioner in an
attempt to cause the commissioner to issue to the individual an additional unique Minnesota
provider identifier, the commissioner may terminate the enrollment of the individual.
new text end

new text begin Subd. 4. new text end

new text begin Required use of an electronic visit verification system. new text end

new text begin Effective January 1,
2027, an individual providing a high-risk service must electronically verify the provision
of the services using an electronic visit verification system meeting the requirements of
section 256B.073.
new text end

new text begin Subd. 5. new text end

new text begin Signatures required for provision of service verifications. new text end

new text begin (a) Effective
January 1, 2027, an individual providing a high-risk service must sign and obtain the
signature of the service recipient, or of the service recipient's representative, on a provision
of service verification form. The provision of service verification form must include a
statement that by signing the form, the signatory is attesting to the accuracy of all data
entered in the electronic visit verification system. The provision of service verification form
must also include a statement that it is a federal crime to provide false information regarding
the provision of medical assistance services.
new text end

new text begin (b) The commissioner must determine a minimum frequency at which the required
signatures on a provision of service verification form must be obtained.
new text end

new text begin Subd. 6. new text end

new text begin Documentation of travel time. new text end

new text begin Effective January 1, 2027, an individual
providing a high-risk service must document any travel or driving time that is eligible for
reimbursement and for which the individual or high-risk agency seeks a medical assistance
payment. The documentation must include:
new text end

new text begin (1) start and stop times with a.m. and p.m. designations;
new text end

new text begin (2) the origination site; and
new text end

new text begin (3) the destination site.
new text end

Sec. 13.

new text begin [256B.0445] ADDITIONAL PROVIDER ENROLLMENT REQUIREMENTS
FOR SPECIFIC PROVIDER TYPES.
new text end

new text begin Subdivision 1. new text end

new text begin Durable medical equipment provider or supplier. new text end

new text begin (a) For the purposes
of this subdivision, "durable medical equipment provider or supplier" means a medical
supplier that can purchase medical equipment or supplies for sale or rent to the general
public and is able to perform or arrange for necessary repairs to and maintenance of
equipment offered for sale or rent.
new text end

new text begin (b) Upon initial enrollment, reenrollment, and notification of revalidation, all durable
medical equipment, prosthetics, orthotics, and supplies medical suppliers meeting the durable
medical equipment provider or supplier definition in paragraph (a), operating in Minnesota,
and receiving Medicaid money must purchase a surety bond that is annually renewed,
designates the Department of Human Services as the obligee, and is submitted in a form
approved by the commissioner. For purposes of this paragraph, 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.
new text end

new text begin (c) At the time of initial enrollment or reenrollment, durable medical equipment providers
or suppliers defined in paragraph (a) 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.
new text end

new text begin Subd. 2. new text end

new text begin Providers licensed by the commissioner of human services. new text end

new text begin An enrolled
provider that is also licensed by the commissioner under chapter 245A must designate an
individual as the licensee's compliance officer under section 256B.044, subdivision 7,
paragraph (b).
new text end

new text begin Subd. 3. new text end

new text begin Providers licensed by the commissioner of health. new text end

new text begin An enrolled provider that
is also licensed by the commissioner of health as a home care provider under chapter 144A
with a home and community-based services designation on the home care license or as an
assisted living facility under chapter 144G must designate an individual as the licensee's
compliance officer under section 256B.044, subdivision 7, paragraph (b).
new text end

Sec. 14.

Minnesota Statutes 2025 Supplement, section 256B.051, subdivision 6, is amended
to read:

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 new text begin section 256B.0444, new text end subdivision deleted text begin 6b deleted text end new text begin
2 new text end .

Sec. 15.

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;

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

(7) completes compliance training as required under new text begin section 256B.0444, new text end subdivision deleted text begin 11 deleted text end new text begin
2 new text end ; and

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

Sec. 16.

Minnesota Statutes 2024, section 256B.073, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) For purposes of this section, the terms in this subdivision have
the meanings given deleted text begin them deleted text end .

(b) "Electronic visit verification" means the electronic documentation of the:

(1) type of service performed;

(2) individual receiving the service;

(3) date of the service;

(4) location of the service delivery;

(5) individual providing the service; and

(6) time the service begins and ends.

(c) "Electronic visit verification system" means a system that provides electronic
verification of services that complies with the 21st Century Cures Act, Public Law 114-255,
and the requirements of subdivision 3.

(d) "Service" deleted text begin means one of the following deleted text end new text begin includes new text end :

(1) personal care assistance services as defined in section 256B.0625, subdivision 19a,
and provided according to section 256B.0659;

(2) community first services and supports under section 256B.85;

(3) home health services under section 256B.0625, subdivision 6a; deleted text begin or
deleted text end

(4) other medical supplies and equipment or home and community-based services that
are required to be electronically verified by the 21st Century Cures Act, Public Law 114-255 deleted text begin . deleted text end new text begin ;
new text end

new text begin (5) services provided by a provider type designated by the commissioner as high-risk
under section 256B.044, subdivision 1; and
new text end

new text begin (6) home and community-based services reimbursed at an hourly or specified
minute-based rate and provided according to a federally approved waiver plan as authorized
under chapter 256S and sections 256B.0913, 256B.092, and 256B.49.
new text end

Sec. 17.

Minnesota Statutes 2025 Supplement, section 256B.0759, subdivision 4, is
amended to read:

Subd. 4.

Provider payment rates.

(a) Payment rates for participating providers must
be increased for services provided to medical assistance enrollees. To receive a rate increase,
participating providers must meet demonstration project requirements and provide evidence
of formal referral arrangements with providers delivering step-up or step-down levels of
care. Providers that have enrolled in the demonstration project but have not met the provider
standards under subdivision 3 as of July 1, 2022, are not eligible for a rate increase under
this subdivision until the date that the provider meets the provider standards in subdivision
3. Services provided from July 1, 2022, to the date that the provider meets the provider
standards under subdivision 3 shall be reimbursed at rates according to section 254B.0505,
subdivision 1. Rate increases paid under this subdivision to a provider for services provided
between July 1, 2021, and July 1, 2022, are not subject to recoupment when the provider
is taking meaningful steps to meet demonstration project requirements that are not otherwise
required by law, and the provider provides documentation to the commissioner, upon request,
of the steps being taken.

(b) The commissioner may temporarily suspend payments to the provider according to
section deleted text begin 256B.04, subdivision 21, paragraph (d) deleted text end new text begin 256B.0442, subdivision 1 new text end , if the provider
does not meet the requirements in paragraph (a). Payments withheld from the provider must
be made once the commissioner determines that the requirements in paragraph (a) are met.

(c) For outpatient individual and group substance use disorder services under section
254B.0505, subdivision 1, clause (1), and adolescent treatment programs that are licensed
as outpatient treatment programs according to sections 245G.01 to 245G.18, provided on
or after January 1, 2021, payment rates must be increased by 20 percent over the rates in
effect on December 31, 2020.

(d) Effective January 1, 2021, and contingent on annual federal approval, managed care
plans and county-based purchasing plans must reimburse providers of the substance use
disorder services meeting the criteria described in paragraph (a) who are employed by or
under contract with the plan an amount that is at least equal to the fee-for-service base rate
payment for the substance use disorder services described in paragraph (c). The commissioner
must monitor the effect of this requirement on the rate of access to substance use disorder
services and residential substance use disorder rates. Capitation rates paid to managed care
organizations and county-based purchasing plans must reflect the impact of this requirement.
This paragraph expires if federal approval is not received at any time as required under this
paragraph.

(e) Effective July 1, 2021, contracts between managed care plans and county-based
purchasing plans and providers to whom paragraph (d) applies must allow recovery of
payments from those providers if, for any contract year, federal approval for the provisions
of paragraph (d) is not received, and capitation rates are adjusted as a result. Payment
recoveries must not exceed the amount equal to any decrease in rates that results from this
provision.

(f) For substance use disorder services with medications for opioid use disorder under
section 254B.0505, subdivision 1, clause (7), provided on or after January 1, 2021, payment
rates must be increased by 20 percent over the rates in effect on December 31, 2020. Upon
implementation of new rates according to section 254B.121, the 20 percent increase will
no longer apply.

Sec. 18.

Minnesota Statutes 2025 Supplement, section 256B.0949, subdivision 16, is
amended to read:

Subd. 16.

Agency duties.

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

(1) enroll as a medical assistance Minnesota health care program provider according to
Minnesota Rules, part 9505.0195, and deleted text begin section 256B.04, subdivision 21 deleted text end new text begin sections 256B.044
to 256B.0445 new text end , and meet all applicable provider standards and requirements;

(2) designate an individual as the agency's compliance officer who must perform the
duties described in section deleted text begin 256B.04, subdivision 21, paragraph (g) deleted text end new text begin 256B.044, subdivision
7, paragraph (b) new text end ;

(3) demonstrate compliance with federal and state laws for the delivery of and billing
for EIDBI service;

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

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

(6) have established business practices including written policies and procedures, internal
controls, and a system that demonstrates the organization's ability to deliver quality EIDBI
services, appropriately submit claims, conduct required staff training, document staff
qualifications, document service activities, and document service quality;

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

(8) initiate a background study as required under subdivision 16a;

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

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

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

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

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

(14) before starting a service, provide the person or the person's legal representative a
description of the treatment modality that the person shall receive, including the staffing
certification levels and training of the staff who shall provide a treatment;

(15) provide clinical supervision for a minimum of one hour for every 16 hours of direct
treatment per person, unless otherwise authorized in the person's individual treatment plan;
and

(16) provide required EIDBI intervention observation and direction at least once per
month. Notwithstanding subdivision 13, paragraph (l), required EIDBI intervention
observation and direction under this clause may be conducted via telehealth provided that
no more than two consecutive monthly required EIDBI intervention observation and direction
sessions under this clause are conducted via telehealth.

(b) Upon request of the commissioner, an agency delivering services under this section
must:

(1) identify the agency's controlling individuals, as defined under section 245A.02,
subdivision 5a;

(2) provide disclosures of the use of billing agencies and other consultants who do not
provide EIDBI services; and

(3) provide copies of any contracts with consultants or independent contractors who do
not provide EIDBI services, including hours contracted and responsibilities.

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

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

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

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

Sec. 19.

Minnesota Statutes 2024, section 256B.0949, subdivision 17, is amended to read:

Subd. 17.

Provider shortage; authority for exceptions.

(a) In consultation with the
Early Intensive Developmental and Behavioral Intervention Advisory Council and
stakeholders, including agencies, professionals, parents of people with ASD or a related
condition, and advocacy organizations, the commissioner shall determine if a shortage of
EIDBI providers exists. For the purposes of this subdivision, "shortage of EIDBI providers"
means a lack of availability of providers who meet the EIDBI provider qualification
requirements under subdivision 15 that results in the delay of access to timely services under
this section, or that significantly impairs the ability of a provider agency to have sufficient
providers to meet the requirements of this section. The commissioner shall consider
geographic factors when determining the prevalence of a shortage. The commissioner may
determine that a shortage exists only in a specific region of the state, multiple regions of
the state, or statewide. The commissioner shall also consider the availability of various types
of treatment modalities covered under this section.

(b) The commissioner, in consultation with the Early Intensive Developmental and
Behavioral Intervention Advisory Council and stakeholders, must establish processes and
criteria for granting an exception under this paragraph. The commissioner may grant an
exception only if the exception would not compromise a person's safety and not diminish
the effectiveness of the treatment. The commissioner may establish an expiration date for
an exception granted under this paragraph. The commissioner may grant an exception for
the following:

(1) EIDBI provider qualifications under this section;

(2) medical assistance provider enrollment requirements under deleted text begin section 256B.04,
subdivision 21 deleted text end new text begin sections 256B.044 to 256B.0445 new text end ; or

(3) EIDBI provider or agency standards or requirements.

(c) If the commissioner, in consultation with the Early Intensive Developmental and
Behavioral Intervention Advisory Council and stakeholders, determines that a shortage no
longer exists, the commissioner must submit a notice that a shortage no longer exists to the
chairs and ranking minority members of the senate and the house of representatives
committees with jurisdiction over health and human services. The commissioner must post
the notice for public comment for 30 days. The commissioner shall consider public comments
before submitting to the legislature a request to end the shortage declaration. The
commissioner shall not declare the shortage of EIDBI providers ended without direction
from the legislature to declare it ended.

Sec. 20.

Minnesota Statutes 2025 Supplement, section 256B.4912, subdivision 1, is
amended to read:

Subdivision 1.

Provider qualifications.

(a) For the home and community-based waivers
providing services to seniors and individuals with disabilities under chapter 256S and
sections 256B.0913, 256B.092, and 256B.49, the commissioner shall establish:

(1) agreements with enrolled waiver service providers to ensure providers meet Minnesota
health care program requirements;

(2) regular reviews of provider qualifications, deleted text begin and deleted text end including requests deleted text begin of deleted text end new text begin for new text end proof of
documentation; and

(3) processes to gather the necessary information to determine provider qualifications.

(b) A provider shall not require or coerce any service recipient to change waiver programs
or move to a different location, consistent with the informed choice and independent living
policies under section 256B.4905, subdivisions 1a, 2a, 3a, 7, and 8.

(c) For staff that provide direct contact, as defined in section 245C.02, subdivision 11,
for services specified in the federally approved waiver plans, providers must meet the
requirements of chapter 245C and maintain documentation of background study requests
and results. This requirement also applies to consumer-directed community supports.

(d) Service owners and managerial officials overseeing the management or policies of
services that provide direct contact as specified in the federally approved waiver plans must
meet the requirements of chapter 245C prior to reenrollment or revalidation or, for new
providers, prior to initial enrollment if they have not already done so as a part of service
licensure requirements.

Sec. 21.

Minnesota Statutes 2024, section 256B.4912, is amended by adding a subdivision
to read:

new text begin Subd. 10a. new text end

new text begin Individual provider identifier. new text end

new text begin (a) Effective January 1, 2027, staff that
provide direct contact, as defined in section 245C.02, subdivision 11, for services specified
in the federally approved waiver plans must enroll individually with Minnesota health care
programs as a medical assistance provider. This requirement also applies to
consumer-directed community supports.
new text end

new text begin (b) For individuals enrolling individually under this subdivision, the commissioner must
conform with the requirements of section 256B.0444, subdivision 3.
new text end

Sec. 22.

Minnesota Statutes 2024, section 256B.4912, subdivision 12, is amended to read:

Subd. 12.

Home and community-based service documentation requirements.

(a)
new text begin Unless the provider is required to use an electronic visit verification system authorized
under section 256B.073, the provider must collect and maintain new text end documentation deleted text begin may be
collected and maintained deleted text end electronically or in paper form deleted text begin by providers and must be produced deleted text end new text begin .
The provider must produce all documentation new text end 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 date the documentation occurred;

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

(3) the start and stop times with a.m. and p.m. designations, except for case management
services as defined under chapter 256S and sections 256B.0913, subdivision 7; 256B.092,
subdivision 1a; and 256B.49, subdivision 13;

(4) the service name or description of the service provided; and

(5) the name, new text begin individual provider identifier, new text end signature, and title, if any, of the provider
of service. If the service is provided by multiple staff members, the provider may designate
a staff member responsible for verifying services and completing the documentation required
by this paragraph.

(d) If the service is reimbursed at a daily rate or does not meet the requirements in
paragraph (c), each documentation of the provision of a service, unless otherwise specified,
must include:

(1) the date the documentation occurred;

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

(3) the service name or description of the service provided; and

(4) the name, new text begin individual provider identifier, new text end signature, and title, if any, of the person
providing the service. If the service is provided by multiple staff, the provider may designate
a staff member responsible for verifying services and completing the documentation required
by this paragraph. new text begin The designated staff member verifying the services must include in the
documentation of the provision of a service the names and individual provider identifiers
of all staff who provided the service.
new text end

Sec. 23.

Minnesota Statutes 2024, section 256B.4912, subdivision 14, is amended to read:

Subd. 14.

Equipment and supply documentation requirements.

(a) deleted text begin In addition to deleted text end new text begin An
equipment and supply services provider must follow new text end the requirements in subdivision 12,
new text begin except for the requirement to provide an individual provider identifier. new text end An equipment and
supply services provider must new text begin also include new text end for each documentation of the provision of a
service deleted text begin include deleted text end :

(1) the recipient's assessed need for the equipment or supply;

(2) the reason the equipment or supply is not covered by the Medicaid state plan;

(3) the type and brand name of the equipment or supply delivered to or purchased by
the recipient, including whether the equipment or supply was rented or purchased;

(4) the quantity of the equipment or supply delivered or purchased; and

(5) the cost of the equipment or supply if the amount paid for the service depends on
the cost.

(b) A provider must maintain a copy of the shipping invoice or a delivery service tracking
log or other documentation showing the date of delivery that proves the equipment or supply
was delivered to the recipient or a receipt if the equipment or supply was purchased by the
recipient.

Sec. 24.

Minnesota Statutes 2024, section 256B.4912, subdivision 15, is amended to read:

Subd. 15.

Adult day service documentation and billing requirements.

(a) In addition
to the requirements in subdivision 12, a provider of adult day services as defined in section
245A.02, subdivision 2a, and licensed under Minnesota Rules, parts 9555.9600 to 9555.9730,
must maintain documentation of:

(1) a needs assessment and current plan of care according to section 245A.143,
subdivisions 4 to 7, or Minnesota Rules, part 9555.9700, for each recipient, if applicable;

(2) attendance records as specified under section 245A.14, subdivision 14, paragraph
(a), including the date of attendance with the day, month, and year; and the pickup and
drop-off time in hours and minutes with a.m. and p.m. designations;

(3) the monthly and quarterly program requirements in Minnesota Rules, part 9555.9710,
subparts 1, items E and H; 3; 4; and 6, if applicable;

(4) the name new text begin , individual provider identifier, new text end and qualification of each registered physical
therapist, registered nurse, and registered dietitian who provides services to the adult day
services or nonresidential program; and

(5) the location where the service was provided. If the location is an alternate location
from the usual place of service, the documentation must include the address, or a description
if the address is not available, of both the origin site and destination site; the length of time
at the alternate location with a.m. and p.m. designations; and a list of participants who went
to the alternate location.

(b) A provider must not exceed the provider's licensed capacity. If a provider exceeds
the provider's licensed capacity, the deleted text begin department deleted text end new text begin commissioner new text end must recover all Minnesota
health care programs payments from the date the provider exceeded licensed capacity.

Sec. 25. new text begin MANDATORY COMPLIANCE TRAINING FOR CURRENTLY
ENROLLED HIGH-RISK MEDICAL ASSISTANCE PROVIDERS.
new text end

new text begin The owners and employees of any medical assistance provider agency subject to the
requirements of Minnesota Statutes, section 256B.0444, subdivision 2, and enrolled before
January 1, 2027, must complete initial compliance training by January 1, 2028. Owners and
employees of PCA and CFSS agencies who enrolled before January 1, 2027, and have
previously completed training under Minnesota Statutes, section 256B.0659, subdivision
21, paragraph (c), or 256B.85, subdivision 12, paragraph (c), are not subject to the initial
training requirements of this section but must repeat the compliance training prior to
revalidation as a medical assistance provider.
new text end

Sec. 26. new text begin DIRECTION TO THE COMMISSIONER OF HUMAN SERVICES;
UNREDACTED INITIAL OPTUM REPORTS.
new text end

new text begin (a) For the purposes of this section, "initial Optum reports" means the reports produced
by Optum, Inc., under contract with the Department of Human Services and announced in
the news release from the department on February 6, 2026.
new text end

new text begin (b) Notwithstanding any law to the contrary, upon a joint request by both the chairs and
ranking minority members of a legislative committee with jurisdiction over human services
policy and finance, the commissioner of human services must immediately release the initial
Optum reports to the members of that legislative committee in the reports' entirety without
redactions or edits, except for redactions requested by Optum to protect proprietary
information. Legislators or legislative staff who receive initial Optum reports under this
section must not disseminate or publicize any not public data, as defined in Minnesota
Statutes, section 13.02, subdivision 8a, that the reports contain.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective 14 days following final enactment.
new text end

Sec. 27. new text begin OPTUM PROHIBITED FROM DISSEMINATING PRIVATE DATA.
new text end

new text begin Optum, Inc., must not sell, share, or disseminate any private data on individuals, as
defined in Minnesota Statutes, section 13.02, subdivision 12, that Optum receives under or
incidental to Optum's contract or engagement with the Department of Human Services
pursuant to the governor's Executive Order No. 25-10.
new text end

Sec. 28. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2025 Supplement, sections 256B.051, subdivision 6b; and 256B.0701,
subdivision 11, new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: S3861-2

256B.051 HOUSING STABILIZATION SERVICES.

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.

256B.0701 RECUPERATIVE CARE SERVICES.

Subd. 11.

Requirements for provider enrollment; compliance training.

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

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

(2) enrollment requirements;

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

(4) fair labor standards;

(5) workplace safety requirements; and

(6) recent changes in service requirements.

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

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