SF 4710

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/24/2026 10:52 a.m.

A bill for an act
relating to human services; providing for behavioral health fund payments for
uncollectible withdrawal management debt; extending the span of eligibility for
behavioral health fund services; establishing a pilot program to permit additional
alternative licensing inspections for substance use disorder treatment programs;
authorizing counties to temporarily retain administrative functions related to the
behavioral health fund; modifying adolescent substance use disorder treatment
rate; modifying funding for withdrawal management start-up and capacity-building
grants; requiring reports; amending Minnesota Statutes 2024, sections 254B.03,
by adding a subdivision; 254B.04, subdivision 1; 254B.06, by adding subdivisions;
Minnesota Statutes 2025 Supplement, sections 254B.04, subdivisions 1a, 6;
254B.0509, subdivision 1; Laws 2025, First Special Session chapter 9, article 4,
sections 21; 25; 26; 27; 28; 29; 30.

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

Section 1.

Minnesota Statutes 2024, section 254B.03, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Behavioral health fund payment for uncollectible withdrawal management
debt. new text end

new text begin (a) The commissioner must develop a procedure and criteria for identifying
uncollectible withdrawal management debt. The criteria for uncollectible withdrawal
management debt must include, at a minimum, the following:
new text end

new text begin (1) the services resulting in the withdrawal management debt were provided by an eligible
vendor with whom the commissioner had an agreement under subdivision 9 at the time the
services were provided;
new text end

new text begin (2) the client who incurred the withdrawal management debt was not eligible to have
substance use disorder treatment services paid for with behavioral health fund money at the
time the services were provided;
new text end

new text begin (3) the provider has billed any available third-party payment source, the claim has been
denied, and the provider has confirmed that any remaining balance is the client's
responsibility; and
new text end

new text begin (4) the provider has billed the client for the client's remaining balance for the cost of
treatment, including co-payments, coinsurance, and deductibles; has made reasonable efforts
seeking payment of the remaining balance; and the remaining balance is at least 90 days
past due.
new text end

new text begin Nothing in this paragraph relieves a withdrawal management program from the program's
obligations under section 62J.808.
new text end

new text begin (b) The criteria under paragraph (a) must not include:
new text end

new text begin (1) a requirement that a withdrawal management program attempt to enroll the client in
a payment plan for the client's remaining balance; or
new text end

new text begin (2) a requirement that a withdrawal management program refer the withdrawal
management debt to a collection agency or law firm for collection.
new text end

new text begin (c) Notwithstanding subdivision 2, beginning with services provided on or after July 1,
2027, the commissioner shall pay withdrawal management programs from the behavioral
health fund for uncollectible withdrawal management debt in an amount not to exceed the
rate as determined under this chapter for the services provided.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2024, section 254B.04, subdivision 1, is amended to read:

Subdivision 1.

Scope and applicability.

This section governs the administration of the
behavioral health fund, establishes the criteria to be applied by deleted text begin local agencies deleted text end new text begin the
commissioner or Tribal Nation new text end to determine a client's financial eligibility under the behavioral
health fund, and determines a client's obligation to pay for substance use disorder treatment
services.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2027.
new text end

Sec. 3.

Minnesota Statutes 2025 Supplement, section 254B.04, subdivision 1a, is amended
to read:

Subd. 1a.

Client eligibility.

(a) Persons eligible for benefits under Code of Federal
Regulations, title 25, part 20, who meet the income standards of section 256B.056,
subdivision 4, and are not enrolled in medical assistance, are entitled to behavioral health
fund services. State money appropriated for this paragraph must be placed in a separate
account established for this purpose.

(b) Persons with dependent children who are determined to be in need of substance use
disorder treatment pursuant to an assessment under section 260E.20, subdivision 1, or in
need of chemical dependency treatment pursuant to a case plan under section 260C.201,
subdivision 6, or 260C.212, shall be assisted by the commissioner to access needed treatment
services. Treatment services must be appropriate for the individual or family, which may
include long-term care treatment or treatment in a facility that allows the dependent children
to stay in the treatment facility. The county shall pay for out-of-home placement costs, if
applicable.

(c) Notwithstanding paragraph (a), any person enrolled in medical assistance or
MinnesotaCare is eligible for room and board services under section 254B.0505, subdivision
1, clause (9).

(d) A client is eligible to have substance use disorder treatment paid for with funds from
the behavioral health fund when the client:

(1) is eligible for MFIP as determined under chapter 142G;

(2) is eligible for medical assistance as determined under Minnesota Rules, parts
9505.0010 to 9505.0140;

(3) is eligible for general assistance, general assistance medical care, or work readiness
as determined under Minnesota Rules, parts 9500.1200 to 9500.1272; or

(4) has income that is within current household size and income guidelines for entitled
persons, as defined in this subdivision and subdivision 7.

(e) Clients who meet the financial eligibility requirement in paragraph (a) and who have
a third-party payment source are eligible for the behavioral health fund if the third-party
payment source pays less than 100 percent of the cost of treatment services for eligible
clients.

(f) A client is ineligible to have substance use disorder treatment services paid for with
behavioral health fund money if the client:

(1) has an income that exceeds current household size and income guidelines for entitled
persons as defined in this subdivision and subdivision 7; or

(2) has an available third-party payment source that will pay the total cost of the client's
treatment.

(g) A client who is disenrolled from a state prepaid health plan during a treatment episode
is eligible for continued treatment service that is paid for by the behavioral health fund until
the treatment episode is completed or the client is re-enrolled in a state prepaid health plan
if the client:

(1) continues to be enrolled in MinnesotaCare, medical assistance, or general assistance
medical care; or

(2) is eligible according to paragraphs (a) and (b) and is determined eligible by the
commissioner under section 254B.04.

(h) When a county commits a client under chapter 253B to a regional treatment center
for substance use disorder services and the client is ineligible for the behavioral health fund,
the county is responsible for the payment to the regional treatment center according to
section 254B.0501, subdivision 3.

(i) Persons enrolled in MinnesotaCare are eligible for room and board services when
provided through intensive residential treatment services and residential crisis services under
section 256B.0632.

(j) A person is eligible for one deleted text begin 60-consecutive-calendar-day deleted text end new text begin 180-consecutive-calendar-day new text end
period per year. A person may submit a request for additional eligibility to the commissioner.
A person denied additional eligibility under this paragraph may request a state agency
hearing under section 256.045.

Sec. 4.

Minnesota Statutes 2025 Supplement, section 254B.04, subdivision 6, is amended
to read:

Subd. 6.

Commissioner to determine client financial eligibility.

(a) The commissioner
shall determine a client's financial eligibility for the behavioral health fund according to
section 254B.04, subdivision 1a, with the income calculated prospectively for one year from
the date of request. The commissioner shall pay for eligible clients according to chapter
256G. Client eligibility must be determined using only forms prescribed by the commissioner.
To determine a client's eligibility, the commissioner must determine the client's income,
the size of the client's household, the availability of a third-party payment source, and a
responsible relative's ability to pay for the client's substance use disorder treatment.

(b) A client who is a minor child must not be deemed to have income available to pay
for substance use disorder treatment, unless the minor child is responsible for payment under
section 144.347 for substance use disorder treatment services sought under section 144.343,
subdivision 1.

(c) The commissioner must determine the client's household size as follows:

(1) if the client is a minor child, the household size includes the following persons living
in the same dwelling unit:

(i) the client;

(ii) the client's birth or adoptive parents; and

(iii) the client's siblings who are minors; and

(2) if the client is an adult, the household size includes the following persons living in
the same dwelling unit:

(i) the client;

(ii) the client's spouse;

(iii) the client's minor children; and

(iv) the client's spouse's minor children.

For purposes of this paragraph, household size includes a person listed in clauses (1) and
(2) who is in an out-of-home placement if a person listed in clause (1) or (2) is contributing
to the cost of care of the person in out-of-home placement.

(d) The commissioner must determine the client's current prepaid health plan enrollment,
the availability of a third-party payment source, including the availability of total payment,
partial payment, and amount of co-payment.

(e) The commissioner shall require the client and policyholder to conditionally assign
to the department the client and policyholder's rights and the rights of minor children to
benefits or services provided to the client if the department is required to collect from a
third-party pay source.

(f) The commissioner must determine a client's eligibility for the behavioral health fund
for a deleted text begin 60-consecutive-calendar-day deleted text end new text begin 180-consecutive-calendar-day new text end period per calendar year.

(g) A client, responsible relative, and policyholder must provide income or wage
verification, household size verification, and must make an assignment of third-party payment
rights under paragraph (e). If a client, responsible relative, or policyholder does not comply
with the provisions of this subdivision, the client is ineligible for behavioral health fund
payment for substance use disorder treatment, and the client and responsible relative must
be obligated to pay for the full cost of substance use disorder treatment services provided
to the client.

Sec. 5.

Minnesota Statutes 2025 Supplement, section 254B.0509, subdivision 1, is amended
to read:

Subdivision 1.

Base payment rates.

new text begin (a) new text end Effective for services provided on or after
January 1, 2026, the commissioner must implement the following base payment rates for
substance use disorder treatment services under section 254B.0505, subdivision 1:

(1) for low-intensity residential services, 100 percent of the modeled rate included in
the final report required by Laws 2021, First Special Session chapter 7, article 17, section
18;

(2) for high-intensity residential services, 83 percent of the modeled rate included in the
final report required by Laws 2021, First Special Session chapter 7, article 17, section 18;
and

(3) for treatment coordination services, 100 percent of the modeled rate included in the
final report required by Laws 2021, First Special Session chapter 7, article 17, section 18.

new text begin (b) Effective for services provided on or after January 1, 2027, the base payment rate
for high-intensity residential services provided by adolescent treatment programs under
section 254B.0505, subdivision 1, clause (9), is equal to 130 percent of the base payment
rate for high-intensity residential services under paragraph (a), including any adjustments
under subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027, or upon federal approval,
whichever is later.
new text end

Sec. 6.

Minnesota Statutes 2024, section 254B.06, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin State collections for withdrawal management services. new text end

new text begin Subdivision 1 applies
to all collections from clients determined by the commissioner to have uncollectible
withdrawal management debt under section 254B.03, subdivision 2a.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026, and applies to all withdrawal
management services provided on or after that date.
new text end

Sec. 7.

Minnesota Statutes 2024, section 254B.06, is amended by adding a subdivision to
read:

new text begin Subd. 3a. new text end

new text begin Payment for withdrawal management services. new text end

new text begin Notwithstanding subdivision
3, the commissioner shall pay eligible vendors for withdrawal management services that
the commissioner determines are uncollectible withdrawal management debt under section
254B.03, subdivision 2a.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026, and applies to all withdrawal
management services provided on or after that date.
new text end

Sec. 8.

Laws 2025, First Special Session chapter 9, article 4, section 21, the effective date,
is amended to read:

EFFECTIVE DATE.

This section is effective July 1, deleted text begin 2026 deleted text end new text begin 2027 new text end .

Sec. 9.

Laws 2025, First Special Session chapter 9, article 4, section 25, the effective date,
is amended to read:

EFFECTIVE DATE.

This section is effective July 1, deleted text begin 2026 deleted text end new text begin 2027 new text end .

Sec. 10.

Laws 2025, First Special Session chapter 9, article 4, section 26, the effective
date, is amended to read:

EFFECTIVE DATE.

This section is effective July 1, deleted text begin 2026 deleted text end new text begin 2027 new text end .

Sec. 11.

Laws 2025, First Special Session chapter 9, article 4, section 27, the effective
date, is amended to read:

EFFECTIVE DATE.

Paragraph (d) is effective July 1, 2025. Paragraphs (b), (g), and
(j) are effective July 1, deleted text begin 2026 deleted text end new text begin 2027 new text end .

Sec. 12.

Laws 2025, First Special Session chapter 9, article 4, section 28, the effective
date, is amended to read:

EFFECTIVE DATE.

This section is effective July 1, deleted text begin 2026 deleted text end new text begin 2027 new text end .

Sec. 13.

Laws 2025, First Special Session chapter 9, article 4, section 29, the effective
date, is amended to read:

EFFECTIVE DATE.

This section is effective July 1, deleted text begin 2026 deleted text end new text begin 2027, except the amendment
to paragraph (f) modifying the eligibility period is effective July 1, 2026 new text end .

Sec. 14.

Laws 2025, First Special Session chapter 9, article 4, section 30, the effective
date, is amended to read:

EFFECTIVE DATE.

This section is effective July 1, deleted text begin 2026 deleted text end new text begin 2027 new text end .

Sec. 15. new text begin QUALIFYING ACCREDITATION PILOT PROGRAM FOR SUBSTANCE
USE DISORDER TREATMENT PROGRAMS.
new text end

new text begin (a) By July 1, 2027, the commissioner of human services must develop a pilot program
that expands the definition of "accrediting body" under Minnesota Statutes, section 245G.031,
subdivision 2, paragraph (c), to include either the Commission on Accreditation of
Rehabilitation Facilities or the ASAM Level of Care Certification Program. The
commissioner must collaborate with interested parties, including but not limited to the
Minnesota Association of Resources for Recovery and Chemical Health, in developing the
pilot program in a manner consistent with Minnesota Statutes, section 245G.031.
new text end

new text begin (b) By January 1, 2030, based on the assessment of the pilot program by the commissioner
of human services, the commissioner must submit recommendations to the legislature
regarding expanding the definition of "accrediting body" under Minnesota Statutes, section
245G.031, subdivision 2, paragraph (c), to include the Commission on Accreditation of
Rehabilitation Facilities, the ASAM Level of Care Certification Program, both, or neither.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 16. new text begin DIRECTION TO THE COMMISSIONER OF HUMAN SERVICES;
ADOLESCENT SUBSTANCE USE DISORDER TREATMENT.
new text end

new text begin By January 15, 2027, the commissioner of human services shall submit to the chairs and
ranking minority members of the legislative committees with jurisdiction over substance
use disorder treatment an update to the report required under Laws 2021, First Special
Session chapter 7, article 17, section 18. The update to the report must contain
recommendations for benchmark payment rates for residential and nonresidential substance
use disorder treatment provided to adolescents.
new text end

Sec. 17. new text begin APPROPRIATION; GENERAL FUND BASE REDUCTION.
new text end

new text begin The general fund appropriation for withdrawal management start-up and capacity-building
grants under Minnesota Statutes, section 254B.17, in Laws 2025, First Special Session
chapter 9, article 12, section 21, and originally appropriated under Laws 2023, chapter 61,
article 9, section 2, subdivision 18, paragraph (g), is reduced in fiscal year 2027 by $.......
and the base is reduced in fiscal year 2028 and each year thereafter by $........ The
commissioner of human services must terminate or amend existing grant contracts to achieve
the necessary reduction in grant expenditures based on the reduction to the program under
this section.
new text end

new text begin EFFECTIVE DATE. new text end

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