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SF 4128

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 03/11/2020 04:45pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to state government; creating Department of Direct Care and Treatment
and Office of Human Services Licensing and Integrity; transferring duties from
the Department of Human Services to a new state office; directing commissioners
of health and human services to contract with third party to administer grant
programs administered by Department of Health and Department of Human
Services; directing commissioner of human services to contract with third party
to review appropriations for information technology projects; requiring reports;
providing for performance-based budgeting for Department of Human Services;
amending Minnesota Statutes 2018, sections 15.01; 15.06, subdivision 1; 15A.0815,
subdivision 2; 16A.103, subdivision 1a; 16A.11, subdivision 3; 43A.08, subdivision
1a; 256.974; 256.9742, subdivision 1; 256.975, by adding a subdivision; Minnesota
Statutes 2019 Supplement, section 15A.0815, subdivision 3; proposing coding for
new law in Minnesota Statutes, chapters 16A; 256; proposing coding for new law
as Minnesota Statutes, chapters 245I; 246C; repealing Minnesota Statutes 2018,
section 256.01, subdivision 9.

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

ARTICLE 1

DEPARTMENT OF DIRECT CARE AND TREATMENT

Section 1.

Minnesota Statutes 2018, section 15.01, is amended to read:


15.01 DEPARTMENTS OF THE STATE.

The following agencies are designated as the departments of the state government: the
Department of Administration; the Department of Agriculture; the Department of Commerce;
the Department of Corrections;new text begin the Department of Direct Care and Treatment;new text end the Department
of Education; the Department of Employment and Economic Development; the Department
of Health; the Department of Human Rights;new text begin the Department of Human Services;new text end the
Department of Iron Range Resources and Rehabilitation; the Department of Labor and
Industry; the Department of Management and Budget; the Department of Military Affairs;
the Department of Natural Resources; the Department of Public Safety; deleted text beginthe Department of
Human Services;
deleted text end the Department of Revenue; the Department of Transportation; the
Department of Veterans Affairs; and their successor departments.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 2.

Minnesota Statutes 2018, section 15.06, subdivision 1, is amended to read:


Subdivision 1.

Applicability.

This section applies to the following departments or
agencies: the Departments of Administrationdeleted text begin,deleted text endnew text begin;new text end Agriculturedeleted text begin,deleted text endnew text begin;new text end Commercedeleted text begin,deleted text endnew text begin;new text end Correctionsdeleted text begin,deleted text endnew text begin; Direct
Care and Treatment;
new text end Educationdeleted text begin,deleted text endnew text begin;new text end Employment and Economic Developmentdeleted text begin,deleted text endnew text begin;new text end Healthdeleted text begin,deleted text endnew text begin;new text end Human
Rightsdeleted text begin,deleted text endnew text begin; Human Services;new text end Labor and Industrydeleted text begin,deleted text endnew text begin;new text end Management and Budgetdeleted text begin,deleted text endnew text begin;new text end Natural Resourcesdeleted text begin,deleted text endnew text begin;new text end
Public Safetydeleted text begin, Human Services,deleted text endnew text begin;new text end Revenuedeleted text begin,deleted text endnew text begin;new text end Transportationdeleted text begin,deleted text endnew text begin;new text end and Veterans Affairs; the
Housing Finance and Pollution Control Agencies; the Office of Commissioner of Iron Range
Resources and Rehabilitation; the Office of MN.IT Services; the Bureau of Mediation
Services; and their successor departments and agencies. The heads of the foregoing
departments or agencies are "commissioners."

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 3.

Minnesota Statutes 2018, section 15A.0815, subdivision 2, is amended to read:


Subd. 2.

Group I salary limits.

The salary for a position listed in this subdivision shall
not exceed 133 percent of the salary of the governor. This limit must be adjusted annually
on January 1. The new limit must equal the limit for the prior year increased by the percentage
increase, if any, in the Consumer Price Index for all urban consumers from October of the
second prior year to October of the immediately prior year. The commissioner of management
and budget must publish the limit on the department's website. This subdivision applies to
the following positions:

Commissioner of administration;

Commissioner of agriculture;

Commissioner of education;

Commissioner of commerce;

Commissioner of corrections;

new text begin Commissioner of direct care and treatment;
new text end

Commissioner of health;

Commissioner, Minnesota Office of Higher Education;

Commissioner, Housing Finance Agency;

Commissioner of human rights;

Commissioner of human services;

Commissioner of labor and industry;

Commissioner of management and budget;

Commissioner of natural resources;

Commissioner, Pollution Control Agency;

Commissioner of public safety;

Commissioner of revenue;

Commissioner of employment and economic development;

Commissioner of transportation; and

Commissioner of veterans affairs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 4.

Minnesota Statutes 2018, section 43A.08, subdivision 1a, is amended to read:


Subd. 1a.

Additional unclassified positions.

Appointing authorities for the following
agencies may designate additional unclassified positions according to this subdivision: the
Departments of Administration; Agriculture; Commerce; Corrections; new text beginDirect Care and
Treatment;
new text endEducation; Employment and Economic Development; Explore Minnesota
Tourism; Management and Budget; Health; Human Rights; new text beginHuman Services; new text endLabor and
Industry; Natural Resources; Public Safety; deleted text beginHuman Services;deleted text end Revenue; Transportation; and
Veterans Affairs; the Housing Finance and Pollution Control Agencies; the State Lottery;
the State Board of Investment; the Office of Administrative Hearings; the Office of MN.IT
Services; the Offices of the Attorney General, Secretary of State, and State Auditor; the
Minnesota State Colleges and Universities; the Minnesota Office of Higher Education; the
Perpich Center for Arts Education; and the Minnesota Zoological Board.

A position designated by an appointing authority according to this subdivision must
meet the following standards and criteria:

(1) the designation of the position would not be contrary to other law relating specifically
to that agency;

(2) the person occupying the position would report directly to the agency head or deputy
agency head and would be designated as part of the agency head's management team;

(3) the duties of the position would involve significant discretion and substantial
involvement in the development, interpretation, and implementation of agency policy;

(4) the duties of the position would not require primarily personnel, accounting, or other
technical expertise where continuity in the position would be important;

(5) there would be a need for the person occupying the position to be accountable to,
loyal to, and compatible with, the governor and the agency head, the employing statutory
board or commission, or the employing constitutional officer;

(6) the position would be at the level of division or bureau director or assistant to the
agency head; and

(7) the commissioner has approved the designation as being consistent with the standards
and criteria in this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 5.

new text begin [246C.01] DEPARTMENT OF DIRECT CARE AND TREATMENT.
new text end

new text begin (a) The Department of Direct Care and Treatment is created. The governor shall appoint
the commissioner of direct care and treatment under section 15.06. The commissioner shall
develop and maintain direct care and treatment in a manner consistent with sections 245.461
and 245.487 and chapters 246, 246B, 252, 253, 253B, 253C, 253D, 254A, 254B, and 256.
The Department of Direct Care and Treatment shall provide direct care and treatment services
in coordination with counties and other vendors. Direct care and treatment services shall
include: specialized inpatient programs at secure treatment facilities as defined in sections
253B.02, subdivision 18a, and 253D.02, subdivision 13; community preparation services;
regional treatment centers; enterprise services; consultative services; aftercare services;
community-based services and programs; transition services; nursing home services; and
other services consistent with the mission of the Department of Direct Care and Treatment.
new text end

new text begin (b) "Community preparation services" means specialized inpatient or outpatient services
or programs operated outside of a secure environment but administered by a secure treatment
facility.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 6.

new text begin [246C.05] TRANSFER OF DUTIES.
new text end

new text begin (a) Section 15.039 applies to the transfer of duties required by this chapter.
new text end

new text begin (b) The commissioner of administration, with the governor's approval, shall issue
reorganization orders under section 16B.37 as necessary to carry out the transfer of duties
required by section 246C.01. The provision of section 16B.37, subdivision 1, stating that
transfers under section 16B.37 may only be to an agency that has existed for at least one
year does not apply to transfers to an agency created by this chapter.
new text end

new text begin (c) The initial salary for the commissioner of direct care and treatment is the same as
the salary for the health systems chief executive officer of direct care and treatment at the
Department of Human Services immediately before July 1, 2021. The salary may change
in the manner specified in section 15A.0815.
new text end

new text begin (d) The commissioner of management and budget shall ensure that the aggregate cost
for the commissioner of direct care and treatment is not more than the aggregate cost of the
primary executives in the Department of Human Services responsible for management of
direct care and treatment immediately before July 1, 2021.
new text end

new text begin (e) For an employee affected by the transfer of duties required by section 246C.01, the
employee's seniority accrual at the employee's former agency transfers to the employee's
new agency.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 7. new text beginREVISOR INSTRUCTION.
new text end

new text begin The revisor of statutes, in consultation with staff from the House Research Department;
House Fiscal Analysis; the Office of Senate Counsel, Research and Fiscal Analysis; and
the respective departments shall prepare legislation for introduction in the 2021 legislative
session proposing the statutory changes necessary to implement the transfers of duties that
this article requires.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

ARTICLE 2

OFFICE OF HUMAN SERVICES LICENSING AND INTEGRITY

Section 1.

Minnesota Statutes 2018, section 15.06, subdivision 1, is amended to read:


Subdivision 1.

Applicability.

This section applies to the following departments or
agencies: the Departments of Administration, Agriculture, Commerce, Corrections,
Education, Employment and Economic Development, Health, Human Rights, Labor and
Industry, Management and Budget, Natural Resources, Public Safety, Human Services,
Revenue, Transportation, and Veterans Affairs; the Housing Finance and Pollution Control
Agencies; the Office of Commissioner of Iron Range Resources and Rehabilitation; the
Office of MN.IT Services; the Bureau of Mediation Services; and their successor departments
and agencies. The heads of the foregoing departments or agencies are "commissioners."new text begin
This subdivision also applies to the Office of Human Services Licensing and Integrity.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 2.

Minnesota Statutes 2019 Supplement, section 15A.0815, subdivision 3, is amended
to read:


Subd. 3.

Group II salary limits.

The salary for a position listed in this subdivision shall
not exceed 120 percent of the salary of the governor. This limit must be adjusted annually
on January 1. The new limit must equal the limit for the prior year increased by the percentage
increase, if any, in the Consumer Price Index for all urban consumers from October of the
second prior year to October of the immediately prior year. The commissioner of management
and budget must publish the limit on the department's website. This subdivision applies to
the following positions:

Executive director of Gambling Control Board;

Commissioner of Iron Range resources and rehabilitation;

Commissioner, Bureau of Mediation Services;

new text begin Director, Office of Human Services Licensing and Integrity;
new text end

Ombudsman for mental health and developmental disabilities;

Ombudsperson for corrections;

Chair, Metropolitan Council;

School trust lands director;

Executive director of pari-mutuel racing; and

Commissioner, Public Utilities Commission.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 3.

new text begin [245I.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The definitions in this section apply to chapter 245I.
new text end

new text begin Subd. 2. new text end

new text begin Department. new text end

new text begin "Department" means the Department of Human Services, unless
otherwise specified.
new text end

new text begin Subd. 3. 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. 4. new text end

new text begin Director. new text end

new text begin "Director" means the director of the Office of Human Services
Licensing and Integrity.
new text end

new text begin Subd. 5. new text end

new text begin Office. new text end

new text begin "Office" means the Office of Human Services Licensing and Integrity.
new text end

Sec. 4.

new text begin [245I.02] OFFICE OF HUMAN SERVICES LICENSING AND INTEGRITY;
CREATION; DIRECTOR; RESPONSIBILITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin The Office of Human Services Licensing and Integrity is
created.
new text end

new text begin Subd. 2. new text end

new text begin Director. new text end

new text begin The director of the Office of Human Services Licensing and Integrity
shall be appointed by the governor with the advice and consent of the senate.
new text end

new text begin Subd. 3. new text end

new text begin Responsibilities. new text end

new text begin The office shall, in coordination with local human services
agencies, where applicable, perform licensing, background studies, and program integrity
functions for all programs administered by the department, which includes the following
specific activities:
new text end

new text begin (1) conduct licensing functions related to programs administered by the Department of
Human Services, including adult day care, child care and early education, children's
residential facilities, foster care, home and community-based services, independent living
assistance for youth, outpatient mental health clinics or centers, residential mental health
treatment for adults, and substance use disorder treatment consistent with chapters 245,
245A, 245D, 245F, 245G, 245H, 252, and 256;
new text end

new text begin (2) conduct background studies according to sections 144.057, 144A.476, 144A.62,
144A.754, and 157.17, and chapter 245C;
new text end

new text begin (3) ensure the detection, prevention, and investigation of fraudulent activities or behavior
by applicants, recipients, providers, and other participants in all programs administered by
the department;
new text end

new text begin (4) require county agencies to identify overpayments, establish claims, and utilize all
available and cost-beneficial methodologies to collect and recover overpayments in all
programs administered by the department;
new text end

new text begin (5) refer cases of fraudulent activities or behavior by applicants, recipients, providers,
and other participants in human services programs to the department or to law enforcement
for resolution as required by law;
new text end

new text begin (6) conduct program evaluations and audits of the department to ensure the absence of
waste, fraud, or abuse in any program administered by the department; and
new text end

new text begin (7) contract with an independent third party to audit the financial activities of the
Department of Human Services relating to its administration of human services programs.
The third-party auditor shall not duplicate any ongoing audit by the legislative auditor.
new text end

new text begin Subd. 4. new text end

new text begin Annual report. new text end

new text begin The director shall report annually by February 1 to the chairs
and ranking minority members of the legislative committees with jurisdiction over human
services on the activities of the office to carry out the duties under this section. The annual
report shall include the following:
new text end

new text begin (1) information relating to investigations undertaken by the office, including the number
of cases investigated, categorized by type, with a specific section detailing investigations
or audits of the department;
new text end

new text begin (2) an accounting of funds recovered as a result of the activities of the office;
new text end

new text begin (3) the monetary value that resulted from fraud prevention activities conducted by the
office; and
new text end

new text begin (4) any specific recommendations to reduce waste, fraud, or abuse in any program
administered by the department.
new text end

new text begin Subd. 5. new text end

new text begin Access to records. new text end

new text begin The director or designee has access to data of any state
agency necessary for the discharge of the duties in subdivision 3, including records classified
as confidential data on individuals or private data on individuals under chapter 13, or any
other law. The director's data request must relate to a specific case and is subject to section
13.03, subdivision 4.
new text end

new text begin Subd. 6. new text end

new text begin Access to employees. new text end

new text begin The director or designee has access to any official or
employee of any state or local agency necessary for the discharge of its duties in subdivision
3. No person may interfere with or impede an investigation or audit conducted by the office.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 5.

new text begin [245I.03] RELATIONSHIP TO DEPARTMENT OF HUMAN SERVICES.
new text end

new text begin (a) The responsibilities in section 245I.02, subdivision 3, shall belong solely to the office
and no other state agency or office. The activities of the office shall be limited to those
necessary to carry out licensing, background studies, and program integrity functions for
all programs administered by the Department of Human Services. The office shall not have
responsibility to develop policies, standards, or legislative proposals regarding licensing,
background studies, or program integrity functions for programs administered by the
Department of Human Services.
new text end

new text begin (b) The director is authorized to enter agreements with the commissioner to establish
how the office shall carry out the duties in section 245I.02, subdivision 3, in conformity
with the applicable program policies, procedures, and standards developed by the department.
The director is authorized to enter additional agreements with the commissioner or any
other state agency or office as needed to carry out the duties in section 245I.02, subdivision
3.
new text end

Sec. 6. new text beginTRANSFER OF DUTIES; OFFICE OF HUMAN SERVICES LICENSING
AND INTEGRITY.
new text end

new text begin (a) Minnesota Statutes, section 15.039, applies to the transfer of duties required by
Minnesota Statutes, chapter 245I.
new text end

new text begin (b) The commissioner of administration, with approval of the governor, shall issue
reorganization orders under Minnesota Statutes, section 16B.37, as necessary to carry out
the transfer of duties required by Minnesota Statutes, chapter 245I. The provision of
Minnesota Statutes, section 16B.37, subdivision 1, stating that transfers under that section
may be made only to an agency that has been in existence for at least one year does not
apply to transfers to the Office of Human Services Licensing and Integrity created by
Minnesota Statutes, section 245I.02.
new text end

new text begin (c) The commissioner of management and budget shall ensure that the aggregate cost
for the Office of Human Services Licensing and Integrity is not more than the aggregate
amount of the Department of Human Services budget activities that relate to the
responsibilities listed in Minnesota Statutes, section 245I.02, subdivision 3, as of June 30,
2021.
new text end

new text begin (d) For an employee affected by the transfer of duties required by Minnesota Statutes,
chapter 245I, the seniority accrued by the employee at the employee's former agency transfers
to the employee's new position at the Office of Human Services Licensing and Integrity.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 7. new text beginDIRECTION TO THE COMMISSIONER OF HUMAN SERVICES AND
DIRECTOR OF THE OFFICE OF HUMAN SERVICES LICENSING AND
INTEGRITY.
new text end

new text begin (a) Prior to July 1, 2021, the commissioner of human services and the director of the
Office of Human Services Licensing and Integrity shall review examples from states that
operate decentralized offices of licensing, background studies, or program integrity activities
for state human services programs in order to develop any necessary agreements or policies
for the Office of Human Services Licensing and Integrity to conduct the responsibilities in
Minnesota Statutes, section 245I.02, subdivision 3.
new text end

new text begin (b) By February 1, 2021, the commissioner of human services, in consultation with the
director of the Office of Human Services Licensing and Integrity, shall identify any divisions
of the Department of Human Services that, by being transferred to the Office of Human
Services Licensing and Integrity, would result in avoidable financial waste. The commissioner
of human services and director of the Office of Human Services Licensing and Integrity
shall report to the chairs and ranking minority members of the legislative committees with
jurisdiction over human services on the divisions of the Department of Human Services
that both the commissioner and director agree should remain within the Department of
Human Services.
new text end

new text begin (c) Effective July 1, 2021, the Department of Human Services shall not duplicate any
activity performed by the Office of Human Services Licensing and Integrity to carry out
the responsibilities in Minnesota Statutes, section 245I.02, subdivision 3. Prior to July 1,
2021, the commissioner of human services shall seek any federal waivers necessary to
comply with this paragraph.
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. 8. new text beginREVISOR INSTRUCTION.
new text end

new text begin The revisor of statutes, in consultation with staff from the House Research Department;
House Fiscal Analysis; the Office of Senate Counsel, Research and Fiscal Analysis; and
the Department of Human Services, shall prepare legislation by January 31, 2021, to make
any statutory changes necessary to achieve the transfer of duties from the Department of
Human Services to the Office of Human Services Licensing and Integrity required by this
article.
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

ARTICLE 3

DEPARTMENT OF HUMAN SERVICES
PERFORMANCE-BASED BUDGETING;
GRANT PROGRAM ADMINISTRATION;
IT APPROPRIATIONS REVIEW

Section 1.

Minnesota Statutes 2018, section 16A.103, subdivision 1a, is amended to read:


Subd. 1a.

Forecast parameters.

new text begin(a) Except as provided in paragraph (b), new text endthe forecast
must assume the continuation of current laws and reasonable estimates of projected growth
in the national and state economies and affected populations. Revenue must be estimated
for all sources provided for in current law. Expenditures must be estimated for all obligations
imposed by law and those projected to occur as a result of variables outside the control of
the legislature. Expenditure estimates must not include an allowance for inflation.

new text begin (b) Notwithstanding paragraph (a) and any appropriations established in law, all
expenditures for the Department of Human Services and the Department of Direct Care and
Treatment estimated for the November forecast must be zero. The forecasted expenditures
in the February forecast must be zero for the Department of Human Services and the
Department of Direct Care and Treatment if they were zero in the preceding November
forecast as a result of the requirements of this paragraph. The commissioner shall not apply
this paragraph to forecasted expenditures for the current biennium, but shall apply the
requirements of this paragraph to the forecasted expenditures for the next two biennia.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 2.

Minnesota Statutes 2018, section 16A.11, subdivision 3, is amended to read:


Subd. 3.

Part two: detailed budget.

(a) Part two of the budget, the detailed budget
estimates both of expenditures and revenues, must contain any statements on the financial
plan which the governor believes desirable or which may be required by the legislature.
The detailed estimates shall include the governor's budget arranged in tabular form.

(b) Tables listing expenditures for the next biennium must show the appropriation base
for each year. The appropriation base is the amount appropriated for the second year of the
current biennium. The tables must separately show any adjustments to the base required by
current law or policies of the commissioner of management and budget. For forecasted
programs, the tables must also show the amount of the forecast adjustments, based on the
most recent forecast prepared by the commissioner of management and budget under section
16A.103. For all programs, the tables must show the amount of appropriation changes
recommended by the governor, after adjustments to the base and forecast adjustments, and
the total recommendation of the governor for that year.

(c) The detailed estimates must include a separate line listing the total cost of professional
and technical service contracts for the prior biennium and the projected costs of those
contracts for the current and upcoming biennium. They must also include a summary of the
personnel employed by the agency, reflected as full-time equivalent positions.

(d) The detailed estimates for internal service funds must include the number of full-time
equivalents by program; detail on any loans from the general fund, including dollar amounts
by program; proposed investments in technology or equipment of $100,000 or more; an
explanation of any operating losses or increases in retained earnings; and a history of the
rates that have been charged, with an explanation of any rate changes and the impact of the
rate changes on affected agencies.

new text begin (e) Notwithstanding paragraph (b) and any appropriation established in law in the year
prior to the year in which part two of the budget under paragraph (a) must be submitted,
the appropriation base for any appropriation made to the Department of Human Services
or the Department of Direct Care and Treatment for the next two biennia must be zero. The
commissioner must display the appropriation base established under this paragraph in the
tables and narrative of part two of the budget under paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 3.

new text begin [16A.111] PERFORMANCE-BASED BUDGET.
new text end

new text begin Subdivision 1. new text end

new text begin Performance-based budget. new text end

new text begin (a) By November 30, 2020, and annually
thereafter, the Department of Human Services and the Department of Direct Care and
Treatment must each submit to the commissioner a proposed detailed operating budget for
the biennium beginning July 1 of the following year using performance-based budgeting,
including a performance-based budget plan. The commissioner of management and budget
shall provide technical assistance to enable the Department of Human Services and the
Department of Direct Care and Treatment to each complete a proposed detailed operating
budget as specified by the commissioner of management and budget.
new text end

new text begin (b) The commissioner of management and budget shall adopt policies and procedures
for the Department of Human Services and the Department of Direct Care and Treatment
to implement this section.
new text end

new text begin (c) As used in this section, "performance-based budgeting" means a method of
determining the budget of a department, institution, or agency for which the budget of the
department, institution, or agency:
new text end

new text begin (1) is deemed to be zero in the November forecast, the February forecast, and the
governor's budget recommendations that precede the establishment of a biennial budget;
and
new text end

new text begin (2) has justified each proposed expenditure for the biennium covered by the budget as
if it were a new expenditure.
new text end

new text begin (d) The Department of Human Services and the Department of Direct Care and Treatment
must each submit to the legislature a detailed operating budget and performance-based
budget plan developed under this subdivision. The information must be submitted to the
legislature at the same time that part two under section 16A.11, subdivision 3, paragraph
(a), of the governor's budget is required to be submitted under section 16A.11, subdivision
1.
new text end

new text begin Subd. 2. new text end

new text begin Performance-based budget plan. new text end

new text begin A performance-based budget plan includes
the following information:
new text end

new text begin (1) a description of activities that comprise the agency and a justification for the existence
of each activity by reference to statute or other legal authority;
new text end

new text begin (2) for each activity, a quantitative estimate of any adverse impacts that could reasonably
occur if the activity is discontinued and a description of the methods by which the adverse
impact is estimated;
new text end

new text begin (3) a list of quantifiable program outcomes that measure the efficiency and effectiveness
of each program;
new text end

new text begin (4) for each activity, an itemized account of expenditures required to maintain the activity
at the minimum level of service required by statutory authority and a concise statement of
the quantity and quality of services required at that minimum level;
new text end

new text begin (5) for each activity, an itemized account of expenditures required to maintain the quantity
and quality of services being provided and the number of personnel necessary to accomplish
each program; and
new text end

new text begin (6) a ranking of all activities that shows the relative contribution of each activity to the
overall goals and purposes of the agency at current service levels.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 4. new text beginDIRECTION TO COMMISSIONERS OF HEALTH AND HUMAN
SERVICES; GRANT PROGRAM ADMINISTRATION CONTRACT.
new text end

new text begin By December 31, 2020, the commissioner of health and the commissioner of human
services shall contract with an independent third party to administer, beginning July 1, 2021,
all grant programs administered by the Department of Health and the Department of Human
Services as of December 31, 2020. The contract shall include the Department of Health and
the Department of Human Services amounts to administer grants and the amounts for grants.
Notwithstanding any law to the contrary, the contract shall allow a maximum of two percent
for administration of the grant funds by the independent third party.
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. 5. new text beginDIRECTION TO COMMISSIONER OF HUMAN SERVICES; HUMAN
SERVICES INFORMATION TECHNOLOGY APPROPRIATIONS REVIEW.
new text end

new text begin (a) By December 31, 2020, the commissioner of human services shall contract with a
third party to review, assess, and report on all appropriations for active information
technology projects at the Department of Human Services, beginning January 1, 2021. At
a minimum, the contractor's report shall include:
new text end

new text begin (1) a technical assessment of the information technology projects, including whether
the project complies with any legislative requirements;
new text end

new text begin (2) an assessment of the feasibility of each information technology project, including
whether each project is on schedule or meets applicable deadlines or performance measures;
new text end

new text begin (3) an assessment of the funding for information technology projects, including
identifying waste, insufficient funding, or overspending; and
new text end

new text begin (4) recommendations to improve the efficiency or outcome of an information technology
project.
new text end

new text begin (b) The contractor shall report its findings to the commissioner and the chairs and ranking
minority members of the legislative committees with jurisdiction over human services by
December 31, 2021.
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

ARTICLE 4

MINNESOTA BOARD ON AGING;
OFFICE OF OMBUDSMAN FOR LONG-TERM CARE

Section 1.

Minnesota Statutes 2018, section 256.974, is amended to read:


256.974 OFFICE OF OMBUDSMAN FOR LONG-TERM CARE.

The ombudsman for long-term care new text beginis appointed by the governor, new text endserves in the deleted text beginclassifieddeleted text endnew text begin
unclassified
new text end service deleted text beginunder section 256.01, subdivision 7deleted text end,new text begin and may be removed only for just
cause. The ombudsman must be selected without regard to political affiliation and must be
a person who has knowledge and experience concerning the treatment, needs, and rights of
consumers of long-term care and who is highly competent and qualified. A person may not
serve as ombudsman while holding another public office or being employed by the
Department of Human Services. The ombudsman serves
new text end in an office within the Minnesota
Board on Aging that incorporates the long-term care ombudsman program required by the
Older Americans Act, as amended, United States Code, title 42, sections 3027(a)(9) and
3058g(a), and Code of Federal Regulations, title 45, parts 1321 and 1327. The office shall
be a distinct entity, separately identifiable from other state agencies and may not be an
agency engaged in the provision of nursing home care, hospital care, or home care services
either directly or by contract, or have the responsibility for planning, coordinating, funding,
or administering nursing home care, hospital care, or home care services.

Sec. 2.

Minnesota Statutes 2018, section 256.9742, subdivision 1, is amended to read:


Subdivision 1.

Duties.

The deleted text beginofficedeleted text endnew text begin ombudsmannew text end shall:

(1) gather information and evaluate any act, practice, policy, procedure, or administrative
action of a long-term care facility, acute care facility, home care service provider, or
government agency that may adversely affect the health, safety, welfare, or rights of any
client;

(2) mediate or advocate on behalf of clients;

(3) monitor new text beginand evaluate new text endthe development and implementation of federal, state, or local
laws, rules, regulations, and policies affecting the rights and benefits of clients;

(4) comment on and deleted text beginrecommenddeleted text endnew text begin make recommendationsnew text end to public and private agenciesnew text begin,
the governor, and the legislature
new text end regarding laws, rules, regulations, and policies affecting
clients;

(5) inform public agencies about the problems of clients;

(6) provide for training of volunteers and promote the development of citizen participation
in the work of the office;

(7) conduct public forums to obtain information about and publicize issues affecting
clients;

(8) provide public education regarding the health, safety, welfare, and rights of clients;
and

(9) collect and analyze data relating to complaints, conditions, and services.

Sec. 3.

new text begin [256.9746] ORGANIZATION OF OFFICE OF OMBUDSMAN FOR
LONG-TERM CARE.
new text end

new text begin Subdivision 1. new text end

new text begin Staff. new text end

new text begin The ombudsman may appoint two deputies and a confidential
secretary in the unclassified service and may appoint other employees as authorized by the
legislature. The ombudsman and the full-time staff are members of the Minnesota State
Retirement Association.
new text end

new text begin Subd. 2. new text end

new text begin Delegation. new text end

new text begin The ombudsman may delegate to representatives of the office any
authority or duties of the ombudsman except the duty of formally making recommendations
to an agency or facility or reports to the governor or the legislature.
new text end

Sec. 4.

new text begin [256.9747] REIMBURSEMENT TO OFFICE OF OMBUDSMAN FOR
LONG-TERM CARE.
new text end

new text begin The commissioner of human services shall obtain federal financial participation for
eligible activity by the ombudsman for long-term care. The ombudsman shall maintain and
transmit to the Department of Human Services documentation that is necessary to obtain
federal funds.
new text end

Sec. 5.

new text begin [256.9748] RECOMMENDATIONS AND REPORTS TO GOVERNOR.
new text end

new text begin Subdivision 1. new text end

new text begin Specific reports. new text end

new text begin The ombudsman may send to the governor or the
legislature conclusions and suggestions concerning any matter. Before making public a
conclusion or recommendation that expressly or implicitly criticizes an agency, facility,
program, or person, the ombudsman shall consult with the governor and the agency, facility,
program, or person concerning the conclusion or recommendation. When sending a
conclusion or recommendation to the governor or legislature that is adverse to an agency,
facility, program, or person, the ombudsman shall include a statement made by that agency,
facility, program, or person in defense or mitigation of the office's conclusion or
recommendation. The governor may not prohibit the ombudsman from sending conclusions
or suggestions to the legislature or prohibit the ombudsman from making conclusions or
recommendations public.
new text end

new text begin Subd. 2. new text end

new text begin General reports. new text end

new text begin In addition to conclusions or recommendations the ombudsman
makes to the governor or legislature on an ad hoc basis, the ombudsman shall, at the end
of each biennium, report to the governor concerning the exercise of the ombudsman's
functions during the preceding biennium.
new text end

Sec. 6.

Minnesota Statutes 2018, section 256.975, is amended by adding a subdivision to
read:


new text begin Subd. 1b. new text end

new text begin Executive director; staff. new text end

new text begin The board may select an executive director of the
board by a vote of a majority of council members. The executive director shall be in the
unclassified service of the state and shall provide administrative support for the council and
provide administrative leadership to implement council mandates, policies, and objectives.
A person may not serve as executive director of the board while being employed by the
Department of Human Services. The executive director shall employ and direct staff
authorized according to state law and necessary to carry out board mandates, policies,
activities, and objectives. The salary of the executive director and staff shall be established
pursuant to chapter 43A. The executive director and staff shall be reimbursed for the actual
and necessary expenses incurred as a result of their council responsibilities.
new text end

Sec. 7. new text beginSMALL AGENCY ADMINISTRATIVE SUPPORT SERVICES.
new text end

new text begin The commissioner of administration shall, under Minnesota Statutes, section 16B.371,
evaluate the needs of the Board on Aging for administrative support services. If, after an
evaluation, the commissioner requires the board to receive administrative support services,
the commissioner may not designate the Department of Human Services to provide the
required administrative support services.
new text end

Sec. 8. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2018, section 256.01, subdivision 9, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: S4128-1

256.01 COMMISSIONER OF HUMAN SERVICES; POWERS, DUTIES.

Subd. 9.

Staff assistance to the Minnesota Board on Aging.

The board shall be provided staff assistance from the Department of Human Services through the special consultant on aging, who shall serve as the executive secretary to the board and its committees.