1.1 	A bill for an act
1.2 	relating to human services; requiring the commissioner of human services to 
1.3 	provide an estimate of departmental earnings; appropriating money for human 
1.4 	services program implementation, administrative oversight, internal controls, and 
1.5 	organizational capacity.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. DIRECTION TO COMMISSIONER OF HUMAN SERVICES; ESTIMATE 
1.8 	OF REQUIRED DEPARTMENTAL EARNINGS.
 1.9 	By January 15, 2027, and again by January 15, 2028, the commissioner of human services 
1.10 	must submit to the chairs and ranking minority members of the legislative committees with 
1.11 	jurisdiction over human services an estimate of the departmental earnings, as defined under 
1.12 	Minnesota Statutes, section 16A.1285, subdivision 1, required to ensure that all department 
1.13 	activities funded through fees will be fully funded only by fee revenue in the fiscal year 
1.14 	following the submission deadline. The commissioner must itemize the required departmental 
1.15 	earnings by fee-funded activity, including licensing activities, program integrity activities, 
1.16 	background studies, criminal background checks, medical assistance provider enrollment 
1.17 	activities, and provider compliance training. The estimate of required departmental earnings 
1.18 	must include any costs that are currently or forecasted to be subsidized by any general fund 
1.19 	appropriation to the commissioner. If the commissioner must use a cost allocation 
1.20 	methodology to isolate and account for the departmental earnings required to fully fund 
1.21 	each activity without relying on any subsidy from other money appropriated to the 
1.22 	commissioner, the commissioner must include a description of the cost allocation method 
1.23 	used to complete the report. The commissioner must include in each report any fee increases 
1.24 	necessary to meet the departmental earnings estimates.

2.1 	Sec. 2. APPROPRIATION; ESTIMATE OF REQUIRED DEPARTMENTAL 
2.2 	EARNINGS REPORTS.
 2.3 	$....... in fiscal year 2026 is appropriated to the commissioner of human services for the 
2.4 	estimates of the required departmental earnings reports due to the legislature during fiscal 
2.5 	years 2027 and 2028.

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

2.7 	Sec. 3. APPROPRIATIONS; IMPLEMENTATION AND OVERSIGHT OF HUMAN 
2.8 	SERVICES PROGRAMS.
 2.9 	$....... in fiscal year 2027 is appropriated from the general fund to the commissioner of 
2.10 	human services for timely, complete, and competent implementation, management, and 
2.11 	oversight of medical assistance and other programs under the jurisdiction of the 
2.12 	commissioner; development and implementation of internal controls; and maintaining 
2.13 	sufficient staff capacity to respond efficiently to changes in state and federal regulations 
2.14 	and statutory requirements. The general fund base for this appropriation is $....... in fiscal 
2.15 	year 2028 and $....... in fiscal year 2029. Of this amount:
2.16 	(1) $....... in fiscal year 2027 is for the Office of Inspector General for licensing, 
2.17 	background study, and program integrity services performed that are not funded by 
2.18 	appropriations from the state government special revenue fund and for centralized 
2.19 	enterprise-wide data and analytics capabilities. The general fund base for this appropriation 
2.20 	is $....... in fiscal year 2028 and $....... in fiscal year 2029;
2.21 	(2) $....... in fiscal year 2027 is for the Aging and Disability Services Administration for 
2.22 	performing lead agency waiver reviews; auditing nursing facility annual cost reports; 
2.23 	administering payment policy; providing guidance, training, and technical assistance on 
2.24 	best practices; and providing general program oversight and guidance;
2.25 	(3) $....... in fiscal year 2027 is for the Behavioral Health Administration for administering 
2.26 	payment policy; providing guidance, training, and technical assistance on best practices; 
2.27 	and providing general program oversight and guidance;
2.28 	(4) $....... in fiscal year 2027 is for the Health Care Administration for provider enrollment 
2.29 	activities that are not funded by an appropriation from the state government special revenue 
2.30 	fund, enrollee eligibility and access activities, and Medicaid payment activities. The general 
2.31 	fund base for this appropriation is $....... in fiscal year 2028 and $....... in fiscal year 2029;
3.1 	(5) $....... in fiscal year 2027 is for the Homelessness, Housing, and Support Services 
3.2 	Administration for administering payment policies; providing guidance, training, and 
3.3 	technical assistance on best practices; and providing general program oversight and guidance;
3.4 	(6) $....... in fiscal year 2027 is for management of grants across the department where 
3.5 	the existing grant authority does not provide sufficient administrative resources to train and 
3.6 	guide grantees and community partners on best practices and Office of Grants Management 
3.7 	policies and procedures; ensure efficient review, scoring, and awarding of grants; implement 
3.8 	best practices for grant oversight and monitoring of grantee activities and spending; and to 
3.9 	perform grant activity evaluations or reports. The general fund base for this appropriation 
3.10 	is $....... in fiscal year 2028 and $....... in fiscal year 2029;
3.11 	(7) $....... in fiscal year 2027 is for MNIT to implement modernization projects; provide 
3.12 	information technology project portfolio oversight; improve business processes; provide 
3.13 	secure and cost-effective information technology systems that support individuals who 
3.14 	participate in department social services, health care, public assistance and direct care 
3.15 	programs across the state; and develop and support applications to automate and maintain 
3.16 	department services and operations. The general fund base for this appropriation is $....... 
3.17 	in fiscal year 2028 and $....... in fiscal year 2029; and
3.18 	(8) $....... in fiscal year 2027 is for central office operations for the Appeals Division to 
3.19 	conduct administrative fair hearings for applicants, recipients, and providers; for the Internal 
3.20 	Audits Office to test, analyze, evaluate, and maintain the overall internal control environment 
3.21 	at the department; for the Office of Strategy and Performance to provide strategic planning, 
3.22 	data insights, evaluation, performance measurement, and change management; and for the 
3.23 	Business Solutions Office to develop the business architecture that supports system solution 
3.24 	design and implement governance oversight for the information management and technology 
3.25 	work of the department. The general fund base for this appropriation is $....... in fiscal year 
3.26 	2028 and $....... in fiscal year 2029.