SF 4996

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/08/2026 09:34 a.m.

A bill for an act
relating to human services; requiring the commissioner of human services to
provide an estimate of departmental earnings; appropriating money for human
services program implementation, administrative oversight, internal controls, and
organizational capacity.

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

Section 1. new text begin DIRECTION TO COMMISSIONER OF HUMAN SERVICES; ESTIMATE
OF REQUIRED DEPARTMENTAL EARNINGS.
new text end

new text begin By January 15, 2027, and again by January 15, 2028, the commissioner of human services
must submit to the chairs and ranking minority members of the legislative committees with
jurisdiction over human services an estimate of the departmental earnings, as defined under
Minnesota Statutes, section 16A.1285, subdivision 1, required to ensure that all department
activities funded through fees will be fully funded only by fee revenue in the fiscal year
following the submission deadline. The commissioner must itemize the required departmental
earnings by fee-funded activity, including licensing activities, program integrity activities,
background studies, criminal background checks, medical assistance provider enrollment
activities, and provider compliance training. The estimate of required departmental earnings
must include any costs that are currently or forecasted to be subsidized by any general fund
appropriation to the commissioner. If the commissioner must use a cost allocation
methodology to isolate and account for the departmental earnings required to fully fund
each activity without relying on any subsidy from other money appropriated to the
commissioner, the commissioner must include a description of the cost allocation method
used to complete the report. The commissioner must include in each report any fee increases
necessary to meet the departmental earnings estimates.
new text end

Sec. 2. new text begin APPROPRIATION; ESTIMATE OF REQUIRED DEPARTMENTAL
EARNINGS REPORTS.
new text end

new text begin $....... in fiscal year 2026 is appropriated to the commissioner of human services for the
estimates of the required departmental earnings reports due to the legislature during fiscal
years 2027 and 2028.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3. new text begin APPROPRIATIONS; IMPLEMENTATION AND OVERSIGHT OF HUMAN
SERVICES PROGRAMS.
new text end

new text begin $....... in fiscal year 2027 is appropriated from the general fund to the commissioner of
human services for timely, complete, and competent implementation, management, and
oversight of medical assistance and other programs under the jurisdiction of the
commissioner; development and implementation of internal controls; and maintaining
sufficient staff capacity to respond efficiently to changes in state and federal regulations
and statutory requirements. The general fund base for this appropriation is $....... in fiscal
year 2028 and $....... in fiscal year 2029. Of this amount:
new text end

new text begin (1) $....... in fiscal year 2027 is for the Office of Inspector General for licensing,
background study, and program integrity services performed that are not funded by
appropriations from the state government special revenue fund and for centralized
enterprise-wide data and analytics capabilities. The general fund base for this appropriation
is $....... in fiscal year 2028 and $....... in fiscal year 2029;
new text end

new text begin (2) $....... in fiscal year 2027 is for the Aging and Disability Services Administration for
performing lead agency waiver reviews; auditing nursing facility annual cost reports;
administering payment policy; providing guidance, training, and technical assistance on
best practices; and providing general program oversight and guidance;
new text end

new text begin (3) $....... in fiscal year 2027 is for the Behavioral Health Administration for administering
payment policy; providing guidance, training, and technical assistance on best practices;
and providing general program oversight and guidance;
new text end

new text begin (4) $....... in fiscal year 2027 is for the Health Care Administration for provider enrollment
activities that are not funded by an appropriation from the state government special revenue
fund, enrollee eligibility and access activities, and Medicaid payment activities. The general
fund base for this appropriation is $....... in fiscal year 2028 and $....... in fiscal year 2029;
new text end

new text begin (5) $....... in fiscal year 2027 is for the Homelessness, Housing, and Support Services
Administration for administering payment policies; providing guidance, training, and
technical assistance on best practices; and providing general program oversight and guidance;
new text end

new text begin (6) $....... in fiscal year 2027 is for management of grants across the department where
the existing grant authority does not provide sufficient administrative resources to train and
guide grantees and community partners on best practices and Office of Grants Management
policies and procedures; ensure efficient review, scoring, and awarding of grants; implement
best practices for grant oversight and monitoring of grantee activities and spending; and to
perform grant activity evaluations or reports. The general fund base for this appropriation
is $....... in fiscal year 2028 and $....... in fiscal year 2029;
new text end

new text begin (7) $....... in fiscal year 2027 is for MNIT to implement modernization projects; provide
information technology project portfolio oversight; improve business processes; provide
secure and cost-effective information technology systems that support individuals who
participate in department social services, health care, public assistance and direct care
programs across the state; and develop and support applications to automate and maintain
department services and operations. The general fund base for this appropriation is $.......
in fiscal year 2028 and $....... in fiscal year 2029; and
new text end

new text begin (8) $....... in fiscal year 2027 is for central office operations for the Appeals Division to
conduct administrative fair hearings for applicants, recipients, and providers; for the Internal
Audits Office to test, analyze, evaluate, and maintain the overall internal control environment
at the department; for the Office of Strategy and Performance to provide strategic planning,
data insights, evaluation, performance measurement, and change management; and for the
Business Solutions Office to develop the business architecture that supports system solution
design and implement governance oversight for the information management and technology
work of the department. The general fund base for this appropriation is $....... in fiscal year
2028 and $....... in fiscal year 2029.
new text end