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HF 1664

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/25/2021 03:31pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to human services; taxation; individual income; establishing the long-term
services and supports trust program and fund; creating an advisory council;
providing directions to the commissioner of human services; establishing a
long-term care insurance tax; allowing certain welfare data-sharing; providing
direction to the Office of the Legislative Auditor; amending Minnesota Statutes
2020, sections 13.46, subdivision 2; 270B.14, subdivision 1; 289A.08, by adding
a subdivision; proposing coding for new law in Minnesota Statutes, chapters 16A;
290; proposing coding for new law as Minnesota Statutes, chapter 256T.

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

ARTICLE 1

LONG-TERM SERVICES AND SUPPORTS TRUST FUND

Section 1.

new text begin [16A.7245] LONG-TERM SERVICES AND SUPPORTS TRUST FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Creation of fund. new text end

new text begin A long-term services and supports trust fund is created
in the state treasury. The fund is a direct appropriated special revenue fund. The commissioner
shall deposit to the credit of the fund receipts from the taxes imposed under section 290.055.
Notwithstanding section 11A.20, all investment income and all investment losses attributable
to the investment of the long-term services and supports trust fund not currently needed
shall be credited to the long-term services and supports trust fund.
new text end

new text begin Subd. 2. new text end

new text begin Long-term services and supports fund. new text end

new text begin The commissioner of human services
may expend money appropriated from the long-term services and supports trust fund for
the purposes of chapter 256T in either year of the biennium. The commissioner may expend
seven percent of money appropriated from the trust fund on administrative expenses.
new text end

new text begin Subd. 3. new text end

new text begin Prohibition on supplantation. new text end

new text begin Money in the fund must be used to expand
long-term care in the state. These funds must not be used in whole or in part to supplant
existing state or county funds for programs that meet the definition of approved service
under section 256T.01, subdivision 2.
new text end

Sec. 2.

new text begin [256T.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin For purposes of this chapter, the terms in this section have
the meanings given unless otherwise provided for in this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Approved service. new text end

new text begin "Approved service" means long-term services and supports
including but not limited to:
new text end

new text begin (1) adaptive equipment and technology;
new text end

new text begin (2) adult day services;
new text end

new text begin (3) adult family foster care;
new text end

new text begin (4) assisted living services provided in a facility licensed under chapter 144G;
new text end

new text begin (5) care transition coordination;
new text end

new text begin (6) case management services;
new text end

new text begin (7) dementia supports;
new text end

new text begin (8) education and consultation;
new text end

new text begin (9) eligible care provided by a qualified independent provider;
new text end

new text begin (10) environmental modifications;
new text end

new text begin (11) family caregiver assessments;
new text end

new text begin (12) financial management services;
new text end

new text begin (13) home care services, including skilled nurse visits, home health aide visits, physical
therapy, occupational therapy, respiratory therapy, language-speech pathology therapy,
home care nursing, personal care assistance, and community first services and supports;
new text end

new text begin (14) home-delivered meals;
new text end

new text begin (15) home safety evaluation;
new text end

new text begin (16) memory care;
new text end

new text begin (17) mental health services focused on trauma and grief for family caregivers;
new text end

new text begin (18) nursing home services provided in a facility licensed under chapter 144A;
new text end

new text begin (19) personal emergency response system;
new text end

new text begin (20) professional services;
new text end

new text begin (21) respite for family caregivers;
new text end

new text begin (22) training for individuals who are not otherwise employed as long-term care workers,
including but not limited to family caregivers; and
new text end

new text begin (23) transportation.
new text end

new text begin Subd. 3. new text end

new text begin Benefit unit. new text end

new text begin "Benefit unit" means no more than $100 paid by the commissioner
to a qualified independent provider or long-term services and supports provider as
reimbursement for approved services provided to an eligible beneficiary on a specific date.
The benefit unit must be adjusted annually at a rate no greater than the Minnesota state
consumer price index, as determined by the commissioner, and must be set at a level to
ensure consumer-driven choice of provider.
new text end

new text begin Subd. 4. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of human services,
unless otherwise specified.
new text end

new text begin Subd. 5. new text end

new text begin Eligible beneficiary. new text end

new text begin "Eligible beneficiary" means a qualified individual who:
new text end

new text begin (1) is age 18 or older;
new text end

new text begin (2) resides in the state of Minnesota;
new text end

new text begin (3) was not disabled before age 18;
new text end

new text begin (4) has been determined dependent in one activity of daily living as defined in section
256B.85, subdivision 2, paragraph (b), or in a Level I behavior as defined in section 256B.85,
subdivision 2, paragraph (r); and
new text end

new text begin (5) has not exhausted the lifetime limit of benefit units.
new text end

new text begin Subd. 6. new text end

new text begin Fund. new text end

new text begin "Fund" means the long-term services and supports trust fund created in
section 16A.7245.
new text end

new text begin Subd. 7. new text end

new text begin Long-term services and supports provider. new text end

new text begin "Long-term services and supports
provider" means an entity that:
new text end

new text begin (1) provides assistance with activities of daily living to older adults and people with
disabilities; and
new text end

new text begin (2) meets the applicable qualifications for the approved service the entity provides,
including a licensed home health agency, licensed assisted living facility, licensed adult
family foster care, licensed nursing home, adult day services program, vendor, instructor,
or other entities registered with the commissioner.
new text end

new text begin Subd. 8. new text end

new text begin Long-term care payroll tax. new text end

new text begin "Long-term care payroll tax" means the taxes
imposed under section 290.055, subdivisions 4 and 5.
new text end

new text begin Subd. 9. new text end

new text begin Program. new text end

new text begin "Program" means the long-term services and supports trust program
established under this chapter.
new text end

new text begin Subd. 10. new text end

new text begin Qualified independent provider. new text end

new text begin "Qualified independent provider" means
an individual who:
new text end

new text begin (1) has a relationship with an eligible beneficiary such as a biological, step, or adoptive
parent or adult child; spouse; partner; friend; or neighbor;
new text end

new text begin (2) assists the eligible beneficiary with an approved service; and
new text end

new text begin (3) meets the requirements established in statute for the approved service the individual
provides that would be required of any other long-term services and supports provider to
receive payments from the state.
new text end

new text begin Subd. 11. new text end

new text begin Qualified individual. new text end

new text begin "Qualified individual" means an individual who paid
the long-term care payroll tax and worked at least 500 hours for:
new text end

new text begin (1) a total of ten years without an interruption of five or more consecutive years; or
new text end

new text begin (2) three years within the last six years.
new text end

Sec. 3.

new text begin [256T.02] COMMISSIONER'S DUTIES.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin The commissioners of human services and revenue each have
distinct responsibilities in the implementation and administration of the program. In the
performance of their duties, the commissioners of human services and revenue shall actively
collaborate to realize program efficiencies and provide persons served by the program with
a well coordinated experience.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner of human services. new text end

new text begin The commissioner shall:
new text end

new text begin (1) select and contract for such actuarial, research, technical, and other administrative
services as the commissioner deems necessary to perform the duties under this subdivision;
new text end

new text begin (2) make determinations regarding an individual's status as an eligible beneficiary and
track the use of lifetime benefit units to verify the individual's status as an eligible beneficiary;
new text end

new text begin (3) make determinations regarding an individual's status as a qualified individual;
new text end

new text begin (4) ensure approved services are provided through audits or service verification processes
within the service provider payment system for qualified independent providers and long-term
services and supports providers and recoup any inappropriate payments;
new text end

new text begin (5) approve long-term services and supports eligible for payment as approved services
under the program;
new text end

new text begin (6) register long-term services and supports providers that meet minimum qualifications;
new text end

new text begin (7) discontinue the registration of long-term services and supports providers that fail to
meet the minimum qualifications established for the services provided or violate the
operational standards of the program;
new text end

new text begin (8) establish procedures for:
new text end

new text begin (i) qualified independent providers and long-term services and supports providers to
submit billing statements for approved services provided to eligible beneficiaries under this
chapter; and
new text end

new text begin (ii) the payment of benefits to qualified independent providers and long-term services
and supports providers;
new text end

new text begin (9) disburse payments of benefits to qualified independent providers and long-term
services and supports providers, utilizing and leveraging existing payment systems for the
provision of approved services to eligible beneficiaries;
new text end

new text begin (10) prepare and distribute written or electronic materials to qualified individuals, eligible
beneficiaries, and the public to inform them of program design and updates;
new text end

new text begin (11) provide customer service, address questions, and develop a complaints process,
including referring individuals to other appropriate agencies such as the Office of Health
Facility Complaints or the Minnesota Adult Abuse Reporting Center;
new text end

new text begin (12) track data useful in monitoring and informing the program;
new text end

new text begin (13) beginning January 1, 2025, and biennially thereafter, perform an actuarial audit and
validation of the long-term services and supports trust fund;
new text end

new text begin (14) consult with the advisory council under section 256T.025 as necessary;
new text end

new text begin (15) make recommendations to the legislative committees with jurisdiction over the
long-term services and supports trust program on actions necessary to maintain fund solvency.
The recommendations must include options to redesign or reduce benefit units, approved
services, or both, to prevent or eliminate unfunded actuarially accrued liability in the fund
or to maintain solvency;
new text end

new text begin (16) beginning November 15, 2026, and every November 15 thereafter, report to the
chairs and ranking minority members of the legislative committees with jurisdiction over
the program on agency spending for administrative expenses and include recommendations
for a method of calculating future agency administrative expenses to limit administrative
expenses while providing sufficient funds to adequately operate the program;
new text end

new text begin (17) beginning December 1, 2027, and every December 1 thereafter, report to the chairs
and ranking minority members of the legislative committees with jurisdiction over the
program on the following:
new text end

new text begin (i) projected and actual program participation;
new text end

new text begin (ii) adequacy of tax rates;
new text end

new text begin (iii) fund balances;
new text end

new text begin (iv) benefits paid;
new text end

new text begin (v) demographic information on program participants; and
new text end

new text begin (vi) the extent to which the program has resulted in savings to the medical assistance
program by avoiding costs that would have otherwise been the responsibility of the state;
new text end

new text begin (18) establish rules and procedures for benefit coordination when the eligible beneficiary
is also eligible for medical assistance and other long-term services and supports coverage,
including Medicare and private long-term care coverage;
new text end

new text begin (19) develop a statewide long-term services and supports program outreach and education
campaign;
new text end

new text begin (20) develop long-term services and supports program enrollment and education navigator
grants; and
new text end

new text begin (21) develop policies and procedures necessary to implement and administer the activities
specified in this subdivision related to the program.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner of revenue. new text end

new text begin The commissioner of revenue shall:
new text end

new text begin (1) collect and assess the taxes imposed under section 290.055;
new text end

new text begin (2) assist the commissioner in monitoring the solvency and financial status of the program;
new text end

new text begin (3) perform investigations to determine the compliance of tax payments to the extent
possible; and
new text end

new text begin (4) adopt policies and procedures necessary to implement and administer the activities
specified in this section related to the program.
new text end

Sec. 4.

new text begin [256T.03] ELIGIBLE BENEFICIARIES; BENEFIT UNITS.
new text end

new text begin Subdivision 1. new text end

new text begin Application; assessment of need. new text end

new text begin A qualified individual may become
an eligible beneficiary by filing an application with the commissioner and undergoing a
long-term care consultation assessment under section 256B.0911.
new text end

new text begin Subd. 2. new text end

new text begin Benefit units. new text end

new text begin An eligible beneficiary may receive approved services and
benefits through the program in the form of a benefit unit payable to a qualified independent
provider or long-term services and supports provider.
new text end

new text begin Subd. 3. new text end

new text begin Benefit units lifetime limit. new text end

new text begin An eligible beneficiary must not receive more
than the dollar equivalent of 365 benefit units over the course of the eligible beneficiary's
lifetime.
new text end

new text begin Subd. 4. new text end

new text begin Calculation of lifetime limit. new text end

new text begin If the commissioner reimburses a qualified
independent provider or long-term services and supports provider for approved services
provided to an eligible beneficiary and the payment is less than a benefit unit, only the
portion of the benefit unit that is used shall be taken into consideration when calculating
the eligible beneficiary's remaining lifetime limit on receipt of benefits.
new text end

new text begin Subd. 5. new text end

new text begin Combination of benefit units. new text end

new text begin An eligible beneficiary may combine benefit
units to receive more approved services per day as long as the total number of lifetime
benefit units has not been exceeded.
new text end

new text begin Subd. 6. new text end

new text begin Benefit units not portable. new text end

new text begin Eligible beneficiaries must be residents of
Minnesota. Benefit units are not portable if a beneficiary moves to another state.
new text end

new text begin Subd. 7. new text end

new text begin Transition to medical assistance. new text end

new text begin Once an eligible beneficiary is estimated to
be eligible for medical assistance within 90 days, the commissioner shall provide information
and assistance on the application for and transition to medical assistance benefits.
new text end

Sec. 5.

new text begin [256T.04] PAYMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Provider payments. new text end

new text begin (a) Approved services must be available and benefits
payable to a qualified independent provider or long-term services and supports provider on
behalf of an eligible beneficiary under this chapter.
new text end

new text begin (b) The commissioner shall promptly and periodically pay qualified independent providers
and long-term services and supports providers for approved services provided to eligible
beneficiaries under this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Qualified independent provider; payments. new text end

new text begin Qualified independent providers
may be paid for approved services in the same manner as individual providers, through a
licensed home health agency, or through an enrolled personal care assistance provider
agency.
new text end

new text begin Subd. 3. new text end

new text begin Primary payer. new text end

new text begin For a person who is an eligible beneficiary under this chapter
and eligible for medical assistance under chapter 256B, the primary payer is the long-term
services and supports program under this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

new text begin [256T.05] PROVIDER REQUIREMENTS.
new text end

new text begin (a) To receive payment for approved services provided under this chapter, a long-term
services and supports provider must:
new text end

new text begin (1) register with the commissioner on the forms and according to the timelines established
by the commissioner;
new text end

new text begin (2) meet any other statutory requirements for the services provided; and
new text end

new text begin (3) meet any other qualifications required by the commissioner.
new text end

new text begin (b) To receive payments for approved services provided under this chapter, a qualified
independent provider must meet relevant statutory requirements for the services provided.
new text end

Sec. 7.

new text begin [256T.06] APPEAL RIGHTS.
new text end

new text begin Determinations made by the commissioner under this chapter, including determinations
regarding functional eligibility or related to registration of long-term services and supports
providers, are subject to appeal in accordance with sections 256.045 and 256.0451.
new text end

Sec. 8.

new text begin [256T.07] ELIGIBILITY FOR OTHER STATE PROGRAMS.
new text end

new text begin Any benefits used by an individual under this chapter are not income or resources for
purposes of eligibility determinations for any other state program or benefit, medical
assistance, or any other means-tested program.
new text end

Sec. 9.

new text begin [256T.08] EXEMPTION.
new text end

new text begin The long-term services and supports trust program under this chapter is not subject to
the requirements of chapter 62S.
new text end

Sec. 10. new text beginDIRECTION TO COMMISSIONER; WAIVER APPLICATION.
new text end

new text begin The commissioner of human services shall:
new text end

new text begin (1) seek access to Medicare data from the federal Centers for Medicare and Medicaid
Services to analyze the potential savings in Medicare expenditures due to the operation of
the long-term services and supports trust program;
new text end

new text begin (2) no later than January 1, 2022, apply for a demonstration waiver from the federal
Centers for Medicare and Medicaid Services to allow for the state to share in the savings
generated in the federal match for medical assistance long-term services and supports and
Medicare due to the operation of the long-term services and supports trust program; and
new text end

new text begin (3) no later than December 1, 2023, submit a report on the status of the waiver application
to the chairs and ranking minority members of the legislative committees with jurisdiction
over the long-term services and supports trust program.
new text end

Sec. 11. new text beginDIRECTION TO COMMISSIONER; REPORT TO LEGISLATURE.
new text end

new text begin By January 1, 2022, the commissioner of human services, in consultation with
stakeholders, shall report to the chairs and ranking minority members of the legislative
committees with jurisdiction over the long-term services and supports trust fund on:
new text end

new text begin (1) establishing criteria for determining that an individual has met the requirements to
be an eligible beneficiary as established in Minnesota Statutes, section 256T.01, subdivision
5, or a qualified individual as established in Minnesota Statutes, section 256T.01, subdivision
11;
new text end

new text begin (2) establishing criteria for minimum qualifications for qualified independent providers
and the registration of long-term care services and supports providers who provide services
to eligible beneficiaries;
new text end

new text begin (3) establishing payment maximums for approved services consistent with actuarial
soundness which shall not be lower than medical assistance payment for comparable services.
A service or supply may be limited by dollar amount, duration, or number of visits;
new text end

new text begin (4) changes to policies or procedures to improve the operation of the program;
new text end

new text begin (5) the annual adjustment of the benefit unit;
new text end

new text begin (6) a refund of taxes for a deceased qualified individual with a dependent who is an
individual with a disability who depends on support from a qualified individual. The qualified
individual must not have been determined to be an eligible beneficiary by the commissioner
of human services. The refund shall be deposited into an individual ABLE account under
Minnesota Statutes, chapter 256Q, for the benefit of the dependent with a disability. The
value of the refund is 100 percent of the current value of the qualified individual's lifetime
contribution under section 290.055 at the time that certification of death of the qualified
individual is submitted, less administrative process fees;
new text end

new text begin (7) assisting the commissioner of human services with the preparation of regular actuarial
reports on the solvency and financial status of the program and advising the legislature on
actions necessary to maintain fund solvency;
new text end

new text begin (8) recommendations on whether and how to extend coverage to individuals who became
disabled before age 18, including the impact on the financial status and solvency of the
fund; and
new text end

new text begin (9) the projected solvency and financial status of the fund.
new text end

Sec. 12. new text beginREQUEST TO OFFICE OF LEGISLATIVE AUDITOR.
new text end

new text begin No later than December 1, 2033, the Office of the Legislative Auditor is requested to
conduct a comprehensive evaluation of the long-term services and supports trust program
established in Minnesota Statutes, chapter 256T, and prepare a report to the chairs and
ranking minority members of the legislative committees with jurisdiction over the long-term
services and supports trust program. The report is requested to include recommendations
for improvements to:
new text end

new text begin (1) program operations;
new text end

new text begin (2) program financial status, including solvency, the value of the benefit provided, and
the financial balance of program benefits to costs; and
new text end

new text begin (3) the overall efficiency of the program, including but not limited to:
new text end

new text begin (i) delaying middle class families' need to spend to poverty to receive Medicaid-funded
long-term care;
new text end

new text begin (ii) strengthening the state economy through improving workforce participation;
new text end

new text begin (iii) reducing the caseload and expenditures of long-term care provided under the medical
assistance program; and
new text end

new text begin (iv) obtaining shared savings through a Medicaid demonstration waiver.
new text end

ARTICLE 2

LONG-TERM SERVICES AND SUPPORTS ADVISORY COUNCIL

Section 1.

new text begin [256T.025] LONG-TERM SERVICES AND SUPPORTS ADVISORY
COUNCIL.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Long-Term Services and Supports Advisory Council
is established to advise the commissioners of human services and revenue on the
administration of the long-term services and supports program and trust fund.
new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin The council shall advise the commissioners of human services and
revenue on:
new text end

new text begin (1) administering the long-term services and supports program and trust fund, including
establishing criteria for making eligible beneficiary and qualified individual determinations,
approving services, establishing procedures for benefit coordination across multiple programs,
and monitoring trust fund solvency;
new text end

new text begin (2) developing a statewide community outreach and education campaign on the long-term
services and supports program;
new text end

new text begin (3) developing criteria and procedures to be used in awarding enrollment and education
navigator grants; and
new text end

new text begin (4) improving program policies, procedures, and operations as necessary.
new text end

new text begin Subd. 3. new text end

new text begin Membership. new text end

new text begin (a) The council shall consist of 16 members, appointed by the
commissioner, except as otherwise specified:
new text end

new text begin (1) two members of the house of representatives, one from the majority party appointed
by the speaker of the house and one from the minority party appointed by the minority
leader of the house of representatives;
new text end

new text begin (2) two members of the senate, one from the majority party appointed by the senate
majority leader and one from the minority party appointed by the senate minority leader;
new text end

new text begin (3) two members representing organizations that provide long-term services and supports
to the elderly and people with disabilities;
new text end

new text begin (4) two members representing individual direct support workers who provide long-term
services and supports to the elderly and people with disabilities;
new text end

new text begin (5) two members representing organizations that advocate on behalf of the elderly or
people with disabilities;
new text end

new text begin (6) two members currently receiving long-term services and supports for the elderly and
people with disabilities;
new text end

new text begin (7) the ombudsman for long-term care or a designee;
new text end

new text begin (8) the commissioner of human services or a designee;
new text end

new text begin (9) the commissioner of revenue or a designee; and
new text end

new text begin (10) the director of the Minnesota State Board of Investment or a designee.
new text end

new text begin (b) Members of the council shall elect a chair at the first council meeting and once every
two years thereafter.
new text end

new text begin Subd. 4. new text end

new text begin Appointment of members. new text end

new text begin The commissioner shall coordinate appointments
to provide geographic diversity and shall ensure that at least one-half of council members
reside outside of the seven-county metropolitan area.
new text end

new text begin Subd. 5. new text end

new text begin Terms; compensation; removal; expiration. new text end

new text begin The council is governed by
section 15.059, except that members of the council shall receive no compensation other
than reimbursement for expenses. Notwithstanding section 15.059, subdivision 6, the council
shall not expire.
new text end

new text begin Subd. 6. new text end

new text begin Meetings. new text end

new text begin (a) The chair shall convene the council on a semiannual basis and
may convene other meetings as necessary. The chair shall convene meetings at different
locations in the state to provide geographic access and shall ensure that at least one-half of
meetings are held at locations outside of the seven-county metropolitan area.
new text end

new text begin (b) The council is subject to chapter 13D.
new text end

new text begin (c) The commissioner shall convene the first meeting of the council no later than .......
new text end

new text begin Subd. 7. new text end

new text begin Administrative services. new text end

new text begin The commissioner shall provide staff and
administrative services for the advisory council.
new text end

ARTICLE 3

LONG-TERM CARE SERVICES AND SUPPORTS CONTRIBUTIONS

Section 1.

Minnesota Statutes 2020, section 270B.14, subdivision 1, is amended to read:


Subdivision 1.

Disclosure to commissioner of human services.

(a) On the request of
the commissioner of human services, the commissioner shall disclose return information
regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to the
extent provided in paragraph (b) and for the purposes set forth in paragraph (c).

(b) Data that may be disclosed are limited to data relating to the identity, whereabouts,
employment, income, and property of a person owing or alleged to be owing an obligation
of child support.

(c) The commissioner of human services may request data only for the purposes of
carrying out the child support enforcement program and to assist in the location of parents
who have, or appear to have, deserted their children. Data received may be used only as set
forth in section 256.978.

(d) The commissioner shall provide the records and information necessary to administer
the supplemental housing allowance to the commissioner of human services.

(e) At the request of the commissioner of human services, the commissioner of revenue
shall electronically match the Social Security numbers and names of participants in the
telephone assistance plan operated under sections 237.69 to 237.71, with those of property
tax refund filers, and determine whether each participant's household income is within the
eligibility standards for the telephone assistance plan.

(f) The commissioner may provide records and information collected under sections
295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid
Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law
102-234. Upon the written agreement by the United States Department of Health and Human
Services to maintain the confidentiality of the data, the commissioner may provide records
and information collected under sections 295.50 to 295.59 to the Centers for Medicare and
Medicaid Services section of the United States Department of Health and Human Services
for purposes of meeting federal reporting requirements.

(g) The commissioner may provide records and information to the commissioner of
human services as necessary to administer the early refund of refundable tax credits.

(h) The commissioner may disclose information to the commissioner of human services
as necessary for income verification for eligibility and premium payment under the
MinnesotaCare program, under section 256L.05, subdivision 2, as well as the medical
assistance program under chapter 256B.

(i) The commissioner may disclose information to the commissioner of human services
necessary to verify whether applicants or recipients for the Minnesota family investment
program, general assistance, the Supplemental Nutrition Assistance Program (SNAP),
Minnesota supplemental aid program, and child care assistance have claimed refundable
tax credits under chapter 290 and the property tax refund under chapter 290A, and the
amounts of the credits.

(j) The commissioner may disclose information to the commissioner of human services
necessary to verify income for purposes of calculating parental contribution amounts under
section 252.27, subdivision 2a.

new text begin (k) The commissioner must disclose to the commissioner of human services any
information necessary to determine an individual's status as a qualified individual or eligible
beneficiary under chapter 256T.
new text end

Sec. 2.

Minnesota Statutes 2020, section 289A.08, is amended by adding a subdivision to
read:


new text begin Subd. 18. new text end

new text begin Long-term care tax on investment income. new text end

new text begin A taxpayer liable for tax under
section 290.055, subdivision 6, must file a return.
new text end

Sec. 3.

new text begin [290.055] LONG-TERM CARE SERVICES AND SUPPORTS TAXES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Covered employment" means employment for which a Minnesota resident employee
earns wages, excluding noncovered employment.
new text end

new text begin (c) "Employee" has the meaning given in section 290.92, subdivision 1, clause (3), but
does not include employees of the United States of America.
new text end

new text begin (d) "Employer" has the meaning given in section 290.92, subdivision 1, clause (4), but
does not include the United States of America.
new text end

new text begin (e) "Net investment income" has the meaning given in section 1411(c) of the Internal
Revenue Code.
new text end

new text begin (f) "Noncovered employment" has the meaning given in section 268.035, subdivision
20, clauses (1) to (3) only.
new text end

new text begin (g) "Self-employment income" means net earnings of a resident from self employment,
as defined in section 1402 of the Internal Revenue Code, but is limited to amounts allocated
or apportioned to the state under section 290.17.
new text end

new text begin (h) "Wages" has the meaning given in section 290.92, subdivision 1.
new text end

new text begin Subd. 2. new text end

new text begin Taxes imposed are in addition to other taxes. new text end

new text begin The taxes imposed under this
section are in addition to the tax imposed under section 289A.08, subdivision 7, and any
other tax imposed by this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Employer payroll tax. new text end

new text begin A tax is imposed on an employer equal to ... percent
of the wages paid by the employer to each employee in covered employment in the taxable
year.
new text end

new text begin Subd. 4. new text end

new text begin Employee payroll tax. new text end

new text begin (a) A tax is imposed on the wages of an employee equal
to ... percent of the individual's wages earned in covered employment in the taxable year.
new text end

new text begin (b) An employer must deduct and withhold on the employee's behalf the employee
payroll tax imposed in paragraph (a), as provided in section 290.92. An employee whose
employer is not otherwise subject to Minnesota withholding requirements for the employee
must file and pay the tax according to subdivision 6.
new text end

new text begin Subd. 5. new text end

new text begin Self-employment tax. new text end

new text begin A tax is imposed on the self-employment income of an
individual taxpayer equal to ... percent of self-employment income in the taxable year.
new text end

new text begin Subd. 6. new text end

new text begin Remittance of payroll and self-employment taxes new text end

new text begin (a) An employer must
remit the tax under subdivisions 3 and 4 as provided in section 289A.18, subdivisions 2 and
2a.
new text end

new text begin (b) An individual must file and pay the self-employment tax under subdivision 5 at the
same time and manner as for payment of estimated tax under section 289A.25, subdivision
3, paragraph (b).
new text end

new text begin (c) An individual, trust, or estate must file and pay the investment income tax at the
same time and manner as for income tax returns under section 289A.18, subdivision 1 or
3.
new text end

new text begin Subd. 7. new text end

new text begin Penalties for failure to correctly report residency. new text end

new text begin (a) Employees who
incorrectly report to their employer that they reside in another state are subject to the
self-employment tax under subdivision 5 for the period for which they reported their
residency status.
new text end

new text begin (b) Employers who incorrectly report to the commissioner the residency of their
employees, and who incorrectly file and pay returns, are subject to the self-employment tax
under subdivision 5 for those employees for those periods.
new text end

new text begin Subd. 8. new text end

new text begin Tax on investment income. new text end

new text begin A resident individual, trust, or estate is liable for
a tax equal to ... percent of net investment income.
new text end

new text begin Subd. 9. new text end

new text begin Long-term services and supports trust fund. new text end

new text begin All revenues from the taxes
imposed by this section are deposited into the long-term services and supports trust fund
established under section 16A.7245.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022.
new text end

ARTICLE 4

DATA PRACTICES

Section 1.

Minnesota Statutes 2020, section 13.46, subdivision 2, is amended to read:


Subd. 2.

General.

(a) Data on individuals collected, maintained, used, or disseminated
by the welfare system are private data on individuals, and shall not be disclosed except:

(1) according to section 13.05;

(2) according to court order;

(3) according to a statute specifically authorizing access to the private data;

(4) to an agent of the welfare system and an investigator acting on behalf of a county,
the state, or the federal government, including a law enforcement person or attorney in the
investigation or prosecution of a criminal, civil, or administrative proceeding relating to the
administration of a program;

(5) to personnel of the welfare system who require the data to verify an individual's
identity; determine eligibility, amount of assistance, and the need to provide services to an
individual or family across programs; coordinate services for an individual or family;
evaluate the effectiveness of programs; assess parental contribution amounts; and investigate
suspected fraud;

(6) to administer federal funds or programs;

(7) between personnel of the welfare system working in the same program;

(8) to the Department of Revenue to assess parental contribution amounts for purposes
of section 252.27, subdivision 2a, administer and evaluate tax refund or tax credit programs
and to identify individuals who may benefit from these programs. The following information
may be disclosed under this paragraph: an individual's and deleted text begintheirdeleted text endnew text begin the individual'snew text end dependent's
names, dates of birth, Social Security numbers, income, addresses, and other data as required,
upon request by the Department of Revenue. Disclosures by the commissioner of revenue
to the commissioner of human services for the purposes described in this clause are governed
by section 270B.14, subdivision 1. Tax refund or tax credit programs include, but are not
limited to, the dependent care credit under section 290.067, the Minnesota working family
credit under section 290.0671, the property tax refund and rental credit under section
290A.04, and the Minnesota education credit under section 290.0674;

(9) between the Department of Human Services, the Department of Employment and
Economic Development, and when applicable, the Department of Education, for the following
purposes:

(i) to monitor the eligibility of the data subject for unemployment benefits, for any
employment or training program administered, supervised, or certified by that agency;

(ii) to administer any rehabilitation program or child care assistance program, whether
alone or in conjunction with the welfare system;

(iii) to monitor and evaluate the Minnesota family investment program or the child care
assistance program by exchanging data on recipients and former recipients of Supplemental
Nutrition Assistance Program (SNAP) benefits, cash assistance under chapter 256, 256D,
256J, or 256K, child care assistance under chapter 119B, medical programs under chapter
256B or 256L, or a medical program formerly codified under chapter 256D; and

(iv) to analyze public assistance employment services and program utilization, cost,
effectiveness, and outcomes as implemented under the authority established in Title II,
Sections 201-204 of the Ticket to Work and Work Incentives Improvement Act of 1999.
Health records governed by sections 144.291 to 144.298 and "protected health information"
as defined in Code of Federal Regulations, title 45, section 160.103, and governed by Code
of Federal Regulations, title 45, parts 160-164, including health care claims utilization
information, must not be exchanged under this clause;

(10) to appropriate parties in connection with an emergency if knowledge of the
information is necessary to protect the health or safety of the individual or other individuals
or persons;

(11) data maintained by residential programs as defined in section 245A.02 may be
disclosed to the protection and advocacy system established in this state according to Part
C of Public Law 98-527 to protect the legal and human rights of persons with developmental
disabilities or other related conditions who live in residential facilities for these persons if
the protection and advocacy system receives a complaint by or on behalf of that person and
the person does not have a legal guardian or the state or a designee of the state is the legal
guardian of the person;

(12) to the county medical examiner or the county coroner for identifying or locating
relatives or friends of a deceased person;

(13) data on a child support obligor who makes payments to the public agency may be
disclosed to the Minnesota Office of Higher Education to the extent necessary to determine
eligibility under section 136A.121, subdivision 2, clause (5);

(14) participant Social Security numbers and names collected by the telephone assistance
program may be disclosed to the Department of Revenue to conduct an electronic data
match with the property tax refund database to determine eligibility under section 237.70,
subdivision 4a
;

(15) the current address of a Minnesota family investment program participant may be
disclosed to law enforcement officers who provide the name of the participant and notify
the agency that:

(i) the participant:

(A) is a fugitive felon fleeing to avoid prosecution, or custody or confinement after
conviction, for a crime or attempt to commit a crime that is a felony under the laws of the
jurisdiction from which the individual is fleeing; or

(B) is violating a condition of probation or parole imposed under state or federal law;

(ii) the location or apprehension of the felon is within the law enforcement officer's
official duties; and

(iii) the request is made in writing and in the proper exercise of those duties;

(16) the current address of a recipient of general assistance may be disclosed to probation
officers and corrections agents who are supervising the recipient and to law enforcement
officers who are investigating the recipient in connection with a felony level offense;

(17) information obtained from a SNAP applicant or recipient households may be
disclosed to local, state, or federal law enforcement officials, upon their written request, for
the purpose of investigating an alleged violation of the Food and Nutrition Act, according
to Code of Federal Regulations, title 7, section 272.1(c);

(18) the address, Social Security number, and, if available, photograph of any member
of a household receiving SNAP benefits shall be made available, on request, to a local, state,
or federal law enforcement officer if the officer furnishes the agency with the name of the
member and notifies the agency that:

(i) the member:

(A) is fleeing to avoid prosecution, or custody or confinement after conviction, for a
crime or attempt to commit a crime that is a felony in the jurisdiction the member is fleeing;

(B) is violating a condition of probation or parole imposed under state or federal law;
or

(C) has information that is necessary for the officer to conduct an official duty related
to conduct described in subitem (A) or (B);

(ii) locating or apprehending the member is within the officer's official duties; and

(iii) the request is made in writing and in the proper exercise of the officer's official duty;

(19) the current address of a recipient of Minnesota family investment program, general
assistance, or SNAP benefits may be disclosed to law enforcement officers who, in writing,
provide the name of the recipient and notify the agency that the recipient is a person required
to register under section 243.166, but is not residing at the address at which the recipient is
registered under section 243.166;

(20) certain information regarding child support obligors who are in arrears may be
made public according to section 518A.74;

(21) data on child support payments made by a child support obligor and data on the
distribution of those payments excluding identifying information on obligees may be
disclosed to all obligees to whom the obligor owes support, and data on the enforcement
actions undertaken by the public authority, the status of those actions, and data on the income
of the obligor or obligee may be disclosed to the other party;

(22) data in the work reporting system may be disclosed under section 256.998,
subdivision 7
;

(23) to the Department of Education for the purpose of matching Department of Education
student data with public assistance data to determine students eligible for free and
reduced-price meals, meal supplements, and free milk according to United States Code,
title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to allocate federal and state
funds that are distributed based on income of the student's family; and to verify receipt of
energy assistance for the telephone assistance plan;

(24) the current address and telephone number of program recipients and emergency
contacts may be released to the commissioner of health or a community health board as
defined in section 145A.02, subdivision 5, when the commissioner or community health
board has reason to believe that a program recipient is a disease case, carrier, suspect case,
or at risk of illness, and the data are necessary to locate the person;

(25) to other state agencies, statewide systems, and political subdivisions of this state,
including the attorney general, and agencies of other states, interstate information networks,
federal agencies, and other entities as required by federal regulation or law for the
administration of the child support enforcement program;

(26) to personnel of public assistance programs as defined in section 256.741, for access
to the child support system database for the purpose of administration, including monitoring
and evaluation of those public assistance programs;

(27) to monitor and evaluate the Minnesota family investment program by exchanging
data between the Departments of Human Services and Education, on recipients and former
recipients of SNAP benefits, cash assistance under chapter 256, 256D, 256J, or 256K, child
care assistance under chapter 119B, medical programs under chapter 256B or 256L, or a
medical program formerly codified under chapter 256D;

(28) to evaluate child support program performance and to identify and prevent fraud
in the child support program by exchanging data between the Department of Human Services,
Department of Revenue under section 270B.14, subdivision 1, paragraphs (a) and (b),
without regard to the limitation of use in paragraph (c), Department of Health, Department
of Employment and Economic Development, and other state agencies as is reasonably
necessary to perform these functions;

(29) counties and the Department of Human Services operating child care assistance
programs under chapter 119B may disseminate data on program participants, applicants,
and providers to the commissioner of education;

(30) child support data on the child, the parents, and relatives of the child may be
disclosed to agencies administering programs under titles IV-B and IV-E of the Social
Security Act, as authorized by federal law;

(31) to a health care provider governed by sections 144.291 to 144.298, to the extent
necessary to coordinate services;

(32) to the chief administrative officer of a school to coordinate services for a student
and family; data that may be disclosed under this clause are limited to name, date of birth,
gender, and address;

(33) to county correctional agencies to the extent necessary to coordinate services and
diversion programs; data that may be disclosed under this clause are limited to name, client
demographics, program, case status, and county worker information; deleted text beginor
deleted text end

(34) between the Department of Human Services and the Metropolitan Council for the
following purposes:

(i) to coordinate special transportation service provided under section 473.386 with
services for people with disabilities and elderly individuals funded by or through the
Department of Human Services; and

(ii) to provide for reimbursement of special transportation service provided under section
473.386.

The data that may be shared under this clause are limited to the individual's first, last, and
middle names; date of birth; residential address; and program eligibility status with expiration
date for the purposes of informing the other party of program eligibilitydeleted text begin.deleted text endnew text begin; or
new text end

new text begin (35) between the Department of Human Services and Department of Revenue for the
administration of the long-term services and supports trust fund under section 16A.7245
and the long-term services and supports trust program under chapter 256T.
new text end

(b) Information on persons who have been treated for drug or alcohol abuse may only
be disclosed according to the requirements of Code of Federal Regulations, title 42, sections
2.1 to 2.67.

(c) Data provided to law enforcement agencies under paragraph (a), clause (15), (16),
(17), or (18), or paragraph (b), are investigative data and are confidential or protected
nonpublic while the investigation is active. The data are private after the investigation
becomes inactive under section 13.82, subdivision 5, paragraph (a) or (b).

(d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but are
not subject to the access provisions of subdivision 10, paragraph (b).

For the purposes of this subdivision, a request will be deemed to be made in writing if
made through a computer interface system.