1.1 	A bill for an act
1.2 	relating to state government; modifying provisions governing child care assistance, 
1.3 	economic assistance, behavioral health, health care, and health insurance access; 
1.4 	making forecast adjustments; requiring reports; transferring money; making 
1.5 	technical and conforming changes; allocating funds for a specific purpose; 
1.6 	establishing certain grants; appropriating money;amending Minnesota Statutes 
1.7 	2020, sections 62N.25, subdivision 5; 62Q.1055; 62Q.47; 119B.011, subdivisions 
1.8 	2, 5, 13, 15, 19b; 119B.02, subdivisions 1, 2; 119B.025, subdivision 4; 119B.03, 
1.9 	subdivisions 3, 9, 10; 119B.035, subdivisions 1, 2, 4, 5; 119B.08, subdivision 3; 
1.10 	119B.11, subdivision 1; 119B.15; 119B.19, subdivision 7; 119B.24; 169A.70, 
1.11 	subdivisions 3, 4; 245.4889, by adding a subdivision; 245.713, subdivision 2; 
1.12 	245F.03; 245G.05, subdivision 2; 245G.22, subdivision 2; 254A.19, subdivisions 
1.13 	1, 3, by adding subdivisions; 254B.01, subdivision 5, by adding subdivisions; 
1.14 	254B.03, subdivisions 1, 5; 254B.04, subdivision 2a, by adding subdivisions; 
1.15 	256.017, subdivision 9; 256.042, subdivisions 1, 2, 5; 256B.055, subdivision 17; 
1.16 	256B.056, subdivision 7; 256B.0625, subdivision 28b; 256B.0941, by adding a 
1.17 	subdivision; 256B.0946, subdivision 7; 256B.0949, subdivision 15; 256D.03, by 
1.18 	adding a subdivision; 256D.0516, subdivision 2; 256D.06, subdivisions 1, 2, 5; 
1.19 	256D.09, subdivision 2a; 256E.35, subdivisions 1, 2, 4a, 6; 256I.03, subdivision 
1.20 	13; 256I.06, subdivisions 6, 10; 256I.09; 256J.08, subdivisions 71, 79; 256J.21, 
1.21 	subdivision 4; 256J.33, subdivision 2; 256J.37, subdivisions 3, 3a; 256J.95, 
1.22 	subdivision 19; 256K.45, subdivision 3; 256L.04, subdivisions 1c, 7a, 10, by 
1.23 	adding a subdivision; 256L.07, subdivision 1; 256L.12, subdivision 8; 256P.01, 
1.24 	by adding a subdivision; 256P.02, by adding a subdivision; 256P.07, subdivisions 
1.25 	1, 2, 3, 4, 6, 7, by adding subdivisions; 256P.08, subdivision 2; 260B.157, 
1.26 	subdivisions 1, 3; 260E.20, subdivision 1; 299A.299, subdivision 1; Minnesota 
1.27 	Statutes 2021 Supplement, sections 119B.13, subdivision 1; 245.4889, subdivision 
1.28 	1; 254A.03, subdivision 3; 254A.19, subdivision 4; 254B.03, subdivision 2; 
1.29 	254B.04, subdivision 1; 254B.05, subdivisions 4, 5; 256.042, subdivision 4; 
1.30 	256B.0946, subdivisions 1, 1a, 2, 3, 4, 6; 256I.06, subdivision 8; 256J.21, 
1.31 	subdivision 3; 256J.33, subdivision 1; 256L.03, subdivision 2; 256L.07, subdivision 
1.32 	2; 256L.15, subdivision 2; 256P.02, subdivisions 1a, 2; 256P.04, subdivisions 4, 
1.33 	8; 256P.06, subdivision 3; 260C.157, subdivision 3; Laws 2021, First Special 
1.34 	Session chapter 7, article 17, sections 1, subdivision 2; 11; 12; proposing coding 
1.35 	for new law in Minnesota Statutes, chapters 119B; 245; 256P; repealing Minnesota 
1.36 	Statutes 2020, sections 119B.03, subdivisions 1, 2, 4, 5, 6a, 6b, 8; 169A.70, 
1.37 	subdivision 6; 245G.22, subdivision 19; 254A.02, subdivision 8a; 254A.16, 
1.38 	subdivision 6; 254A.19, subdivisions 1a, 2; 254B.04, subdivisions 2b, 2c; 254B.041, 
2.1 	subdivision 2; 256J.08, subdivisions 10, 61, 62, 81, 83; 256J.30, subdivisions 5, 
2.2 	7; 256J.33, subdivisions 3, 5; 256J.34, subdivisions 1, 2, 3, 4; 256J.37, subdivision 
2.3 	10; Minnesota Statutes 2021 Supplement, sections 119B.03, subdivisions 4a, 6; 
2.4 	254A.19, subdivision 5; 256J.08, subdivision 53; 256J.30, subdivision 8; 256J.33, 
2.5 	subdivision 4; Minnesota Rules, parts 9530.7000, subparts 1, 2, 5, 6, 7, 8, 9, 10, 
2.6 	11, 13, 14, 15, 17a, 19, 20, 21; 9530.7005; 9530.7010; 9530.7012; 9530.7015, 
2.7 	subparts 1, 2a, 4, 5, 6; 9530.7020, subparts 1, 1a, 2; 9530.7021; 9530.7022, subpart 
2.8 	1; 9530.7025; 9530.7030, subpart 1.
2.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.10 	ARTICLE 1
2.11 	CHILD CARE

2.12 	Section 1. Minnesota Statutes 2020, section 119B.011, subdivision 2, is amended to read:
2.13 		Subd. 2.Applicant. "Child care fund applicants" means all parents,; stepparents,; legal 
2.14 	guardians, or; eligible relative caregivers; relative custodians who accepted a transfer of 
2.15 	permanent legal and physical custody of a child under section 260C.515, subdivision 4, or 
2.16 	similar permanency disposition in Tribal code; successor custodians or guardians as 
2.17 	established by section 256N.22, subdivision 10; or foster parents providing care to a child 
2.18 	placed in a family foster home under section 260C.007, subdivision 16b, who are members 
2.19 	of the family and reside in the household that applies for child care assistance under the 
2.20 	child care fund.

2.21 	Sec. 2. Minnesota Statutes 2020, section 119B.011, subdivision 5, is amended to read:
2.22 		Subd. 5.Child care. "Child care" means the care of a child by someone other than a 
2.23 	parent,; stepparent,; legal guardian,; eligible relative caregiver,; relative custodian who 
2.24 	accepted a transfer of permanent legal and physical custody of a child under section 
2.25 	260C.515, subdivision 4, or similar permanency disposition in Tribal code; successor 
2.26 	custodian or guardian as established according to section 256N.22, subdivision 10; foster 
2.27 	parent providing care to a child placed in a family foster home under section 260C.007, 
2.28 	subdivision 16b; or the spouses spouse of any of the foregoing in or outside the child's own 
2.29 	home for gain or otherwise, on a regular basis, for any part of a 24-hour day.

2.30 	Sec. 3. Minnesota Statutes 2020, section 119B.011, subdivision 13, is amended to read:
2.31 		Subd. 13.Family. "Family" means parents,; stepparents,; guardians and their spouses, 
2.32 	or; other eligible relative caregivers and their spouses,; relative custodians who accepted a 
2.33 	transfer of permanent legal and physical custody of a child under section 260C.515, 
2.34 	subdivision 4, or similar permanency disposition in Tribal code, and their spouses; successor 
2.35 	custodians or guardians as established according to section 256N.22, subdivision 10, and 
3.1 	their spouses; or foster parents providing care to a child placed in a family foster home 
3.2 	under section 260C.007, subdivision 16b, and their spouses; and their blood related the 
3.3 	blood-related dependent children and adoptive siblings under the age of 18 years living in 
3.4 	the same home including of the above. This definition includes children temporarily absent 
3.5 	from the household in settings such as schools, foster care, and residential treatment facilities 
3.6 	or parents, stepparents, guardians and their spouses, or other relative caregivers and their 
3.7 	spouses and adults temporarily absent from the household in settings such as schools, military 
3.8 	service, or rehabilitation programs. An adult family member who is not in an authorized 
3.9 	activity under this chapter may be temporarily absent for up to 60 days. When a minor 
3.10 	parent or parents and his, her, or their child or children are living with other relatives, and 
3.11 	the minor parent or parents apply for a child care subsidy, "family" means only the minor 
3.12 	parent or parents and their child or children. An adult age 18 or older who meets this 
3.13 	definition of family and is a full-time high school or postsecondary student may be considered 
3.14 	a dependent member of the family unit if 50 percent or more of the adult's support is provided 
3.15 	by the parents,; stepparents,; guardians, and their spouses; relative custodians who accepted 
3.16 	a transfer of permanent legal and physical custody of a child under section 260C.515, 
3.17 	subdivision 4, or similar permanency disposition in Tribal code, and their spouses; successor 
3.18 	custodians or guardians as established according to section 256N.22, subdivision 10, and 
3.19 	their spouses; foster parents providing care to a child placed in a family foster home under 
3.20 	section 260C.007, subdivision 16b, and their spouses; or eligible relative caregivers and 
3.21 	their spouses residing in the same household.

3.22 	Sec. 4. Minnesota Statutes 2020, section 119B.011, subdivision 19b, is amended to read:
3.23 		Subd. 19b.Student parent. "Student parent" means a person who is:
3.24 	(1) under 21 years of age and has a child;
3.25 	(2) pursuing a high school diploma or commissioner of education-selected high school 
3.26 	equivalency certification; and
3.27 	(3) residing within a county that has a basic sliding fee waiting list under section 119B.03, 
3.28 	subdivision 4; and
3.29 	(4) (3) not an MFIP participant.

3.30 	Sec. 5. Minnesota Statutes 2020, section 119B.02, subdivision 1, is amended to read:
3.31 		Subdivision 1.Child care services. The commissioner shall develop standards for county 
3.32 	and human services boards to provide child care services to enable eligible families to 
4.1 	participate in employment, training, or education programs. Within the limits of available 
4.2 	appropriations, The commissioner shall distribute money to counties to reduce the costs of 
4.3 	child care for eligible families. The commissioner shall adopt rules to govern the program 
4.4 	in accordance with this section. The rules must establish a sliding schedule of fees for parents 
4.5 	receiving child care services. The rules shall provide that funds received as a lump-sum 
4.6 	payment of child support arrearages shall not be counted as income to a family in the month 
4.7 	received but shall be prorated over the 12 months following receipt and added to the family 
4.8 	income during those months. The commissioner shall maximize the use of federal money 
4.9 	under title I and title IV of Public Law 104-193, the Personal Responsibility and Work 
4.10 	Opportunity Reconciliation Act of 1996, and other programs that provide federal or state 
4.11 	reimbursement for child care services for low-income families who are in education, training, 
4.12 	job search, or other activities allowed under those programs. Money appropriated under 
4.13 	this section must be coordinated with the programs that provide federal reimbursement for 
4.14 	child care services to accomplish this purpose. Federal reimbursement obtained must be 
4.15 	allocated to the county that spent money for child care that is federally reimbursable under 
4.16 	programs that provide federal reimbursement for child care services. The counties
4.17 	commissioner shall use the federal money to expand child care services. The commissioner 
4.18 	may adopt rules under chapter 14 to implement and coordinate federal program requirements.

4.19 	Sec. 6. Minnesota Statutes 2020, section 119B.02, subdivision 2, is amended to read:
4.20 		Subd. 2.Contractual agreements with tribes. The commissioner may enter into 
4.21 	contractual agreements with a federally recognized Indian tribe with a reservation in 
4.22 	Minnesota to carry out the responsibilities of county human service agencies to the extent 
4.23 	necessary for the tribe to operate child care assistance programs under sections 119B.03
4.24 	and 119B.05 for families eligible under this chapter. An agreement may allow the state to 
4.25 	make payments for child care assistance services provided under section 119B.05 this 
4.26 	chapter. The commissioner shall consult with the affected county or counties in the 
4.27 	contractual agreement negotiations, if the county or counties wish to be included, in order 
4.28 	to avoid the duplication of county and tribal child care services. Funding to support services 
4.29 	under section 119B.03 may be transferred to the federally recognized Indian tribe with a 
4.30 	reservation in Minnesota from allocations available to counties in which reservation 
4.31 	boundaries lie. When funding is transferred under section 119B.03, the amount shall be 
4.32 	commensurate to estimates of the proportion of reservation residents with characteristics 
4.33 	identified in section 119B.03, subdivision 6, to the total population of county residents with 
4.34 	those same characteristics.

5.1 	Sec. 7. Minnesota Statutes 2020, section 119B.03, subdivision 3, is amended to read:
5.2 		Subd. 3.Eligible participants. Families that meet the eligibility requirements under 
5.3 	sections 119B.09 and 119B.10, except MFIP participants, diversionary work program, and 
5.4 	transition year families are eligible for child care assistance under the basic sliding fee child 
5.5 	care assistance program. Families enrolled in the basic sliding fee program shall be continued 
5.6 	until they are no longer eligible. Child care assistance provided through the child care fund 
5.7 	is considered assistance to the parent.

5.8 	Sec. 8. Minnesota Statutes 2020, section 119B.03, subdivision 9, is amended to read:
5.9 		Subd. 9.Portability pool Family move; continued participation. (a) The commissioner 
5.10 	shall establish a pool of up to five percent of the annual appropriation for the basic sliding 
5.11 	fee program to provide continuous child care assistance for eligible families who move 
5.12 	between Minnesota counties. At the end of each allocation period, any unspent funds in the 
5.13 	portability pool must be used for assistance under the basic sliding fee program. If 
5.14 	expenditures from the portability pool exceed the amount of money available, the reallocation 
5.15 	pool must be reduced to cover these shortages.
5.16 	(b) A family that has moved from a county in which it A family receiving child care 
5.17 	assistance under the child care fund that has moved from a county where the family was 
5.18 	receiving basic sliding fee child care assistance to a another Minnesota county with a waiting 
5.19 	list for the basic sliding fee program must be admitted into the new county's child care 
5.20 	assistance program if the family:
5.21 	(1) meet meets the income and eligibility guidelines for the basic sliding fee child care 
5.22 	assistance program; and
5.23 	(2) notify notifies the family's previous county of residence of the family's move to a 
5.24 	new county of residence.
5.25 	(c) (b) The receiving county must:
5.26 	(1) accept administrative responsibility for applicants for portable basic sliding fee 
5.27 	assistance a child care program-eligible family that has moved into the county at the end 
5.28 	of the two months of assistance under the Unitary Residency Act;.
5.29 	(2) continue portability pool basic sliding fee assistance until the family is able to receive 
5.30 	assistance under the county's regular basic sliding program; and
5.31 	(3) notify the commissioner through the quarterly reporting process of any family that 
5.32 	meets the criteria of the portable basic sliding fee assistance pool.

6.1 	Sec. 9. Minnesota Statutes 2020, section 119B.03, subdivision 10, is amended to read:
6.2 		Subd. 10.Application; entry points. Two or more methods of applying for the basic 
6.3 	sliding fee child care assistance program under this chapter must be available to applicants 
6.4 	in each county. To meet the requirements of this subdivision, a county may provide 
6.5 	alternative methods of applying for assistance, including, but not limited to, a mail 
6.6 	application, or application sites that are located outside of government offices.

6.7 	Sec. 10. Minnesota Statutes 2020, section 119B.035, subdivision 1, is amended to read:
6.8 		Subdivision 1.Establishment. A family in which a parent provides care for the family's 
6.9 	infant child may receive a subsidy in lieu of assistance if the family is eligible for or is 
6.10 	receiving assistance under the basic sliding feechild care assistance program. An eligible 
6.11 	family must meet the eligibility factors under section 119B.09, except as provided in 
6.12 	subdivision 4, and the requirements of this section. Subject to federal match and maintenance 
6.13 	of effort requirements for the child care and development fund, and up to available 
6.14 	appropriations, the commissioner shall provide assistance under the at-home infant child 
6.15 	care program and for administrative costs associated with the program. At the end of a fiscal 
6.16 	year, the commissioner may carry forward any unspent funds under this section to the next 
6.17 	fiscal year within the same biennium for assistance under the basic sliding feechild care 
6.18 	assistance program.

6.19 	Sec. 11. Minnesota Statutes 2020, section 119B.035, subdivision 2, is amended to read:
6.20 		Subd. 2.Eligible families. A family with an infant under the age of one year is eligible 
6.21 	for assistance if:
6.22 	(1) the family is not receiving MFIP, other cash assistance, or other child care assistance;
6.23 	(2) the family has not previously received a lifelong total of 12 months of assistance 
6.24 	under this section; and
6.25 	(3) the family is participating in the basic sliding fee child care assistance program or 
6.26 	provides verification of participating in an authorized activity at the time of application and 
6.27 	meets the program requirements.

6.28 	Sec. 12. Minnesota Statutes 2020, section 119B.035, subdivision 4, is amended to read:
6.29 		Subd. 4.Assistance. (a) A family is limited to a lifetime total of 12 months of assistance 
6.30 	under subdivision 2. The maximum rate of assistance is equal to 68 percent of the rate 
7.1 	established under section 119B.13 for care of infants in licensed family child care in the 
7.2 	applicant's county of residence.
7.3 	(b) A participating family must report income and other family changes as specified in 
7.4 	sections 256P.06 and 256P.07, and the county's plan under section 119B.08, subdivision 3.
7.5 	(c) Persons who are admitted to the at-home infant child care program retain their position 
7.6 	in any basic sliding fee program. Persons leaving the at-home infant child care program 
7.7 	reenter the basic sliding fee program at the position they would have occupied.
7.8 	(d) (c) Assistance under this section does not establish an employer-employee relationship 
7.9 	between any member of the assisted family and the county or state.

7.10 	Sec. 13. Minnesota Statutes 2020, section 119B.035, subdivision 5, is amended to read:
7.11 		Subd. 5.Implementation. The commissioner shall implement the at-home infant child 
7.12 	care program under this section through counties that administer the basic sliding fee child 
7.13 	care assistance program under section 119B.03 this chapter. The commissioner must develop 
7.14 	and distribute consumer information on the at-home infant child care program to assist 
7.15 	parents of infants or expectant parents in making informed child care decisions.

7.16 	Sec. 14. Minnesota Statutes 2020, section 119B.08, subdivision 3, is amended to read:
7.17 		Subd. 3.Child care fund plan. The county and designated administering agency shall 
7.18 	submit a biennial child care fund plan to the commissioner. The commissioner shall establish 
7.19 	the dates by which the county must submit the plans. The plan shall include:
7.20 	(1) a description of strategies to coordinate and maximize public and private community 
7.21 	resources, including school districts, health care facilities, government agencies, 
7.22 	neighborhood organizations, and other resources knowledgeable in early childhood 
7.23 	development, in particular to coordinate child care assistance with existing community-based 
7.24 	programs and service providers including child care resource and referral programs, early 
7.25 	childhood family education, school readiness, Head Start, local interagency early intervention 
7.26 	committees, special education services, early childhood screening, and other early childhood 
7.27 	care and education services and programs to the extent possible, to foster collaboration 
7.28 	among agencies and other community-based programs that provide flexible, family-focused 
7.29 	services to families with young children and to facilitate transition into kindergarten. The 
7.30 	county must describe a method by which to share information, responsibility, and 
7.31 	accountability among service and program providers;
8.1 	(2) a description of procedures and methods to be used to make copies of the proposed 
8.2 	state plan reasonably available to the public, including members of the public particularly 
8.3 	interested in child care policies such as parents, child care providers, culturally specific 
8.4 	service organizations, child care resource and referral programs, interagency early 
8.5 	intervention committees, potential collaborative partners and agencies involved in the 
8.6 	provision of care and education to young children, and allowing sufficient time for public 
8.7 	review and comment; and
8.8 	(3) information as requested by the department to ensure compliance with the child care 
8.9 	fund statutes and rules promulgated by the commissioner.
8.10 	The commissioner shall notify counties within 90 days of the date the plan is submitted 
8.11 	whether the plan is approved or the corrections or information needed to approve the plan. 
8.12 	The commissioner shall withhold a county's allocation until it has an approved plan. Plans 
8.13 	not approved by the end of the second quarter after the plan is due may result in a 25 percent 
8.14 	reduction in allocation. Plans not approved by the end of the third quarter after the plan is 
8.15 	due may result in a 100 percent reduction in the allocation to the county payments to a 
8.16 	county until it has an approved plan. Counties are to maintain services despite any reduction 
8.17 	in their allocation withholding of payments due to plans not being approved.

8.18 	Sec. 15. Minnesota Statutes 2020, section 119B.11, subdivision 1, is amended to read:
8.19 		Subdivision 1.County contributions required. (a) In addition to payments from basic 
8.20 	sliding fee child care assistance program participants, each county shall contribute from 
8.21 	county tax or other sources a fixed local match equal to its calendar year 1996 required 
8.22 	county contribution reduced by the administrative funding loss that would have occurred 
8.23 	in state fiscal year 1996 under section 119B.15. The commissioner shall recover funds from 
8.24 	the county as necessary to bring county expenditures into compliance with this subdivision. 
8.25 	The commissioner may accept county contributions, including contributions above the fixed 
8.26 	local match, in order to make state payments.
8.27 	(b) The commissioner may accept payments from counties to:
8.28 	(1) fulfill the county contribution as required under subdivision 1;
8.29 	(2) pay for services authorized under this chapter beyond those paid for with federal or 
8.30 	state funds or with the required county contributions; or
8.31 	(3) pay for child care services in addition to those authorized under this chapter, as 
8.32 	authorized under other federal, state, or local statutes or regulations.
9.1 	(c) The county payments must be deposited in an account in the special revenue fund. 
9.2 	Money in this account is appropriated to the commissioner for child care assistance under 
9.3 	this chapter and other applicable statutes and regulations and is in addition to other state 
9.4 	and federal appropriations.

9.5 	Sec. 16. Minnesota Statutes 2021 Supplement, section 119B.13, subdivision 1, is amended 
9.6 	to read:
9.7 		Subdivision 1.Subsidy restrictions. (a) Beginning November 15, 2021 October 3, 2022, 
9.8 	the maximum rate paid for child care assistance in any county or county price cluster under 
9.9 	the child care fund shall be:
9.10 	(1) for all infants and toddlers, the greater of the 40th 75th percentile of the 2021 child 
9.11 	care provider rate survey or and the rates in effect at the time of the update; and.
9.12 	(2) for all preschool and school-age children, the greater of the 30th percentile of the 
9.13 	2021 child care provider rate survey or the rates in effect at the time of the update.
9.14 	(b) Beginning the first full service period on or after January 1, 2025, and every three 
9.15 	years thereafter, the maximum rate paid for child care assistance in a county or county price 
9.16 	cluster under the child care fund shall be:
9.17 	(1) for all infants and toddlers, the greater of the 40th 75th percentile of the 2024 most 
9.18 	recent child care provider rate survey or and the rates in effect at the time of the update; 
9.19 	and.
9.20 	(2) for all preschool and school-age children, the greater of the 30th percentile of the 
9.21 	2024 child care provider rate survey or the rates in effect at the time of the update.
9.22 	The rates under paragraph (a) continue until the rates under this paragraph go into effect.
9.23 	(c) For a child care provider located within the boundaries of a city located in two or 
9.24 	more of the counties of Benton, Sherburne, and Stearns, the maximum rate paid for child 
9.25 	care assistance shall be equal to the maximum rate paid in the county with the highest 
9.26 	maximum reimbursement rates or the provider's charge, whichever is less. The commissioner 
9.27 	may: (1) assign a county with no reported provider prices to a similar price cluster; and (2) 
9.28 	consider county level access when determining final price clusters.
9.29 	(d) A rate which includes a special needs rate paid under subdivision 3 may be in excess 
9.30 	of the maximum rate allowed under this subdivision.
9.31 	(e) The department shall monitor the effect of this paragraph on provider rates. The 
9.32 	county shall pay the provider's full charges for every child in care up to the maximum 
10.1 	established. The commissioner shall determine the maximum rate for each type of care on 
10.2 	an hourly, full-day, and weekly basis, including special needs and disability care.
10.3 	(f) If a child uses one provider, the maximum payment for one day of care must not 
10.4 	exceed the daily rate. The maximum payment for one week of care must not exceed the 
10.5 	weekly rate.
10.6 	(g) If a child uses two providers under section 119B.097, the maximum payment must 
10.7 	not exceed:
10.8 	(1) the daily rate for one day of care;
10.9 	(2) the weekly rate for one week of care by the child's primary provider; and
10.10 	(3) two daily rates during two weeks of care by a child's secondary provider.
10.11 	(h) Child care providers receiving reimbursement under this chapter must not be paid 
10.12 	activity fees or an additional amount above the maximum rates for care provided during 
10.13 	nonstandard hours for families receiving assistance.
10.14 	(i) If the provider charge is greater than the maximum provider rate allowed, the parent 
10.15 	is responsible for payment of the difference in the rates in addition to any family co-payment 
10.16 	fee.
10.17 	(j) Beginning October 3, 2022, the maximum registration fee paid for child care assistance 
10.18 	in any county or county price cluster under the child care fund shall be set as follows: (1) 
10.19 	beginning November 15, 2021, the greater of the 40th 75th percentile of the 2021 most 
10.20 	recent child care provider rate survey or and the registration fee in effect at the time of the 
10.21 	update; and (2) beginning the first full service period on or after January 1, 2025, the 
10.22 	maximum registration fee shall be the greater of the 40th percentile of the 2024 child care 
10.23 	provider rate survey or the registration fee in effect at the time of the update. The registration 
10.24 	fees under clause (1) continue until the registration fees under clause (2) go into effect.
10.25 	(k) Maximum registration fees must be set for licensed family child care and for child 
10.26 	care centers. For a child care provider located in the boundaries of a city located in two or 
10.27 	more of the counties of Benton, Sherburne, and Stearns, the maximum registration fee paid 
10.28 	for child care assistance shall be equal to the maximum registration fee paid in the county 
10.29 	with the highest maximum registration fee or the provider's charge, whichever is less.

11.1 	Sec. 17. Minnesota Statutes 2020, section 119B.15, is amended to read:
11.2 	119B.15 ADMINISTRATIVE EXPENSES.
11.3 	The commissioner shall use up to 1/21 of the state and federal funds available for the 
11.4 	basic sliding fee program and 1/21 of the state and federal funds available for the MFIP
11.5 	child care assistance program for payments to counties for administrative expenses. The 
11.6 	commissioner shall make monthly payments to each county based on direct service 
11.7 	expenditures. Payments may be withheld if monthly reports are incomplete or untimely.

11.8 	Sec. 18. Minnesota Statutes 2020, section 119B.19, subdivision 7, is amended to read:
11.9 		Subd. 7.Child care resource and referral programs. Within each region, a child care 
11.10 	resource and referral program must:
11.11 	(1) maintain one database of all existing child care resources and services and one 
11.12 	database of family referrals;
11.13 	(2) provide a child care referral service for families;
11.14 	(3) develop resources to meet the child care service needs of families;
11.15 	(4) increase the capacity to provide culturally responsive child care services;
11.16 	(5) coordinate professional development opportunities for child care and school-age 
11.17 	care providers;
11.18 	(6) administer and award child care services grants;
11.19 	(7) cooperate with the Minnesota Child Care Resource and Referral Network and its 
11.20 	member programs to develop effective child care services and child care resources; and
11.21 	(8) assist in fostering coordination, collaboration, and planning among child care programs 
11.22 	and community programs such as school readiness, Head Start, early childhood family 
11.23 	education, local interagency early intervention committees, early childhood screening, 
11.24 	special education services, and other early childhood care and education services and 
11.25 	programs that provide flexible, family-focused services to families with young children to 
11.26 	the extent possible.;
11.27 	(9) administer the child care one-stop regional assistance network to assist child care 
11.28 	providers and individuals interested in becoming child care providers with establishing and 
11.29 	sustaining a licensed family child care or group family child care program or a child care 
11.30 	center; and
12.1 	(10) provide supports that enable economically challenged individuals to obtain the job 
12.2 	skills training, career counseling, and job placement assistance necessary to begin a career 
12.3 	path in child care.

12.4 	Sec. 19. Minnesota Statutes 2020, section 119B.24, is amended to read:
12.5 	119B.24 DUTIES OF COMMISSIONER.
12.6 	In addition to the powers and duties already conferred by law, the commissioner of 
12.7 	human services shall:
12.8 	(1) administer the child care fund, including the basic sliding fee program authorized 
12.9 	under sections 119B.011 to 119B.16;
12.10 	(2) monitor the child care resource and referral programs established under section 
12.11 	119B.19; and
12.12 	(3) encourage child care providers to participate in a nationally recognized accreditation 
12.13 	system for early childhood and school-age care programs. Subject to approval by the 
12.14 	commissioner, family child care providers and early childhood and school-age care programs 
12.15 	shall be reimbursed for one-half of the direct cost of accreditation fees, upon successful 
12.16 	completion of accreditation.

12.17 	Sec. 20. [119B.27] SHARED SERVICES GRANTS.
12.18 	The commissioner of human services shall establish a grant program to enable family 
12.19 	child care providers to implement shared services alliances.

12.20 	EFFECTIVE DATE. This section is effective July 1, 2023.

12.21 	Sec. 21. [119B.28] CHILD CARE PROVIDER ACCESS TO TECHNOLOGY 
12.22 	GRANTS.
12.23 	The commissioner of human services shall distribute money provided by this section 
12.24 	through grants to one or more organizations to offer grants or other supports to child care 
12.25 	providers to improve their access to computers, the Internet, subscriptions to online child 
12.26 	care management applications, and other technologies intended to improve their business 
12.27 	practices. Up to ten percent of the grant funds may be used for administration of this program.

12.28 	Sec. 22. Minnesota Statutes 2020, section 256.017, subdivision 9, is amended to read:
12.29 		Subd. 9.Timing and disposition of penalty and case disallowance funds. Quality 
12.30 	control case penalty and administrative penalty amounts shall be disallowed or withheld 
13.1 	from the next regular reimbursement made to the county agency for state and federal benefit 
13.2 	reimbursements and federal administrative reimbursements for all programs covered in this 
13.3 	section, according to procedures established in statute, but shall not be imposed sooner than 
13.4 	30 calendar days from the date of written notice of such penalties. Except for penalties 
13.5 	withheld under the child care assistance program, All penalties must be deposited in the 
13.6 	county incentive fund provided in section 256.018. Penalties withheld under the child care 
13.7 	assistance program shall be reallocated to counties using the allocation formula under section 
13.8 	119B.03, subdivision 5. All penalties must be imposed according to this provision until a 
13.9 	decision is made regarding the status of a written exception. Penalties must be returned to 
13.10 	county agencies when a review of a written exception results in a decision in their favor.

13.11 	Sec. 23. DIRECTION TO COMMISSIONER; ALLOCATING BASIC SLIDING 
13.12 	FEE FUNDS.
 13.13 	Notwithstanding Minnesota Statutes, section 119B.03, subdivisions 6, 6a, and 6b, the 
13.14 	commissioner of human services must allocate additional basic sliding fee child care money 
13.15 	for calendar year 2024 to counties and Tribes to account for the change in the definition of 
13.16 	family in sections 1 to 3. In allocating the additional money, the commissioner shall consider:
13.17 	(1) the number of children in the county or Tribe who receive care from a relative 
13.18 	custodian who accepted a transfer of permanent legal and physical custody of a child under 
13.19 	section 260C.515, subdivision 4, or similar permanency disposition in Tribal code; successor 
13.20 	custodian or guardian as established according to section 256N.22, subdivision 10; or foster 
13.21 	parents in a family foster home under section 260C.007, subdivision 16b; and
13.22 	(2) the average basic sliding fee cost of care in the county or Tribe.

13.23 	Sec. 24. DIRECTION TO COMMISSIONER OF MANAGEMENT AND BUDGET.
 13.24 	The state obligation for the child care assistance program under Minnesota Statutes, 
13.25 	chapter 119B, must be included in the Department of Management and Budget February 
13.26 	and November forecast of state revenues and expenditures under Minnesota Statutes, section 
13.27 	16A.103, beginning with the February 2023 forecast.

13.28 	Sec. 25. INCREASE FOR MAXIMUM RATES.
 13.29 	Notwithstanding Minnesota Statutes, section 119B.03, subdivisions 6, 6a, and 6b, the 
13.30 	commissioner of human services shall allocate the additional basic sliding fee child care 
13.31 	funds for calendar year 2023 to counties for updated maximum rates based on relative need 
14.1 	to cover maximum rate increases. In distributing the additional funds, the commissioner 
14.2 	shall consider the following factors by county:
14.3 	(1) number of children covered by the county;
14.4 	(2) provider types that care for covered children;
14.5 	(3) age of covered children; and
14.6 	(4) amount of the increase in maximum rates.

14.7 	Sec. 26. REPEALER.
 14.8 	(a) Minnesota Statutes 2020, section 119B.03, subdivisions 1, 2, 4, 5, 6a, 6b, and 8, are 
14.9 	repealed.
14.10 	(b) Minnesota Statutes 2021 Supplement, section 119B.03, subdivisions 4a and 6, are 
14.11 	repealed.

14.12 	ARTICLE 2
14.13 	ECONOMIC ASSISTANCE

14.14 	Section 1. Minnesota Statutes 2020, section 119B.011, subdivision 15, is amended to read:
14.15 		Subd. 15.Income. (a) "Income" means earned income as defined under section 256P.01, 
14.16 	subdivision 3, unearned income as defined under section 256P.01, subdivision 8, and public 
14.17 	assistance cash benefits, including the Minnesota family investment program, diversionary 
14.18 	work program, work benefit, Minnesota supplemental aid, general assistance, refugee cash 
14.19 	assistance, at-home infant child care subsidy payments, and child support and maintenance 
14.20 	distributed to the a family under section 256.741, subdivision 2a., and nonrecurring income 
14.21 	over $60 per quarter unless the nonrecurring income is:
14.22 	(1) from tax refunds, tax rebates, or tax credits;
14.23 	(2) from a reimbursement, rebate, award, grant, or refund of personal or real property 
14.24 	or costs or losses incurred when these payments are made by a public agency, a court, a 
14.25 	solicitation through public appeal, the federal government, a state or local unit of government, 
14.26 	or a disaster assistance organization;
14.27 	(3) provided as an in-kind benefit; or
14.28 	(4) earmarked and used for the purpose for which it was intended.
14.29 	(b) The following are deducted from income: funds used to pay for health insurance 
14.30 	premiums for family members, and child or spousal support paid to or on behalf of a person 
15.1 	or persons who live outside of the household. Income sources not included in this subdivision 
15.2 	and section 256P.06, subdivision 3, are not counted as income.

15.3 	Sec. 2. Minnesota Statutes 2020, section 119B.025, subdivision 4, is amended to read:
15.4 		Subd. 4.Changes in eligibility. (a) The county shall process a change in eligibility 
15.5 	factors according to paragraphs (b) to (g).
15.6 	(b) A family is subject to the reporting requirements in section 256P.07, subdivision 6.
15.7 	(c) If a family reports a change or a change is known to the agency before the family's 
15.8 	regularly scheduled redetermination, the county must act on the change. The commissioner 
15.9 	shall establish standards for verifying a change.
15.10 	(d) A change in income occurs on the day the participant received the first payment 
15.11 	reflecting the change in income.
15.12 	(e) During a family's 12-month eligibility period, if the family's income increases and 
15.13 	remains at or below 85 percent of the state median income, adjusted for family size, there 
15.14 	is no change to the family's eligibility. The county shall not request verification of the 
15.15 	change. The co-payment fee shall not increase during the remaining portion of the family's 
15.16 	12-month eligibility period.
15.17 	(f) During a family's 12-month eligibility period, if the family's income increases and 
15.18 	exceeds 85 percent of the state median income, adjusted for family size, the family is not 
15.19 	eligible for child care assistance. The family must be given 15 calendar days to provide 
15.20 	verification of the change. If the required verification is not returned or confirms ineligibility, 
15.21 	the family's eligibility ends following a subsequent 15-day adverse action notice.
15.22 	(g) Notwithstanding Minnesota Rules, parts 3400.0040, subpart 3, and 3400.0170, 
15.23 	subpart 1, if an applicant or participant reports that employment ended, the agency may 
15.24 	accept a signed statement from the applicant or participant as verification that employment 
15.25 	ended.

15.26 	Sec. 3. Minnesota Statutes 2020, section 256D.03, is amended by adding a subdivision to 
15.27 	read:
15.28 		Subd. 2b.Budgeting and reporting. Every county agency shall determine eligibility 
15.29 	and calculate benefit amounts for general assistance according to chapter 256P.

16.1 	Sec. 4. Minnesota Statutes 2020, section 256D.0516, subdivision 2, is amended to read:
16.2 		Subd. 2.SNAP reporting requirements. The commissioner of human services shall 
16.3 	implement simplified reporting as permitted under the Food and Nutrition Act of 2008, as 
16.4 	amended, and the SNAP regulations in Code of Federal Regulations, title 7, part 273. SNAP 
16.5 	benefit recipient households required to report periodically shall not be required to report 
16.6 	more often than one time every six months. This provision shall not apply to households 
16.7 	receiving food benefits under the Minnesota family investment program waiver.

16.8 	Sec. 5. Minnesota Statutes 2020, section 256D.06, subdivision 1, is amended to read:
16.9 		Subdivision 1.Eligibility; amount of assistance. General assistance shall be granted 
16.10 	to an individual or married couple in an amount that when added to the countable income 
16.11 	as determined to be actually equal to the difference between  available to the assistance unit
16.12 	income under section 256P.06, the total amount equals the applicable standard of assistance 
16.13 	for general assistance and the standard for the individual or married couple using the MFIP 
16.14 	transitional standard cash portion described in section 256J.24, subdivision 5, paragraph 
16.15 	(a). In determining eligibility for and the amount of assistance for an individual or married 
16.16 	couple, the agency shall apply the earned income disregard as determined in section 256P.03.

16.17 	EFFECTIVE DATE. This section is effective October 1, 2023.

16.18 	Sec. 6. Minnesota Statutes 2020, section 256D.06, subdivision 2, is amended to read:
16.19 		Subd. 2.Emergency need. (a) Notwithstanding the provisions of subdivision 1, a grant 
16.20 	of emergency general assistance shall, to the extent funds are available, be made to an 
16.21 	eligible single adult, married couple, or family for an emergency need where the recipient 
16.22 	requests temporary assistance not exceeding 30 days if an emergency situation appears to 
16.23 	exist under written criteria adopted by the county agency. If an applicant or recipient relates 
16.24 	facts to the county agency which may be sufficient to constitute an emergency situation, 
16.25 	the county agency shall, to the extent funds are available, advise the person of the procedure 
16.26 	for applying for assistance according to this subdivision.
16.27 	(b) The applicant must be ineligible for assistance under chapter 256J, must have annual 
16.28 	net income no greater than 200 percent of the federal poverty guidelines for the previous 
16.29 	calendar year, and may only receive an emergency assistance grant not more than once in 
16.30 	any 12-month period.
16.31 	(c) Funding for an emergency general assistance program is limited to the appropriation. 
16.32 	Each fiscal year, the commissioner shall allocate to counties the money appropriated for 
17.1 	emergency general assistance grants based on each county agency's average share of state's 
17.2 	emergency general expenditures for the immediate past three fiscal years as determined by 
17.3 	the commissioner, and may reallocate any unspent amounts to other counties. The 
17.4 	commissioner may disregard periods of pandemic or other disaster, including fiscal years 
17.5 	2021 and 2022, when determining the amount allocated to counties. No county shall be 
17.6 	allocated less than $1,000 for a fiscal year.
17.7 	(d) Any emergency general assistance expenditures by a county above the amount of 
17.8 	the commissioner's allocation to the county must be made from county funds.

17.9 	Sec. 7. Minnesota Statutes 2020, section 256D.06, subdivision 5, is amended to read:
17.10 		Subd. 5.Eligibility; requirements. (a) Any applicant, otherwise eligible for general 
17.11 	assistance and possibly eligible for maintenance benefits from any other source shall (1) 
17.12 	make application for those benefits within 30 90 days of the general assistance application, 
17.13 	unless an applicant had good cause to not apply within that period; and (2) execute an interim 
17.14 	assistance agreement on a form as directed by the commissioner.
17.15 	(b) The commissioner shall review a denial of an application for other maintenance 
17.16 	benefits and may require a recipient of general assistance to file an appeal of the denial if 
17.17 	appropriate. If found eligible for benefits from other sources, and a payment received from 
17.18 	another source relates to the period during which general assistance was also being received, 
17.19 	the recipient shall be required to reimburse the county agency for the interim assistance 
17.20 	paid. Reimbursement shall not exceed the amount of general assistance paid during the time 
17.21 	period to which the other maintenance benefits apply and shall not exceed the state standard 
17.22 	applicable to that time period.
17.23 	(c) The commissioner may contract with the county agencies, qualified agencies, 
17.24 	organizations, or persons to provide advocacy and support services to process claims for 
17.25 	federal disability benefits for applicants or recipients of services or benefits supervised by 
17.26 	the commissioner using money retained under this section.
17.27 	(d) The commissioner may provide methods by which county agencies shall identify, 
17.28 	refer, and assist recipients who may be eligible for benefits under federal programs for 
17.29 	people with a disability.
17.30 	(e) The total amount of interim assistance recoveries retained under this section for 
17.31 	advocacy, support, and claim processing services shall not exceed 35 percent of the interim 
17.32 	assistance recoveries in the prior fiscal year.

18.1 	Sec. 8. Minnesota Statutes 2020, section 256E.35, subdivision 1, is amended to read:
18.2 		Subdivision 1.Establishment. The Minnesota family assets for independence initiative 
18.3 	is established to provide incentives for low-income families to accrue assets for education, 
18.4 	housing, vehicles, emergencies, and economic development purposes.

18.5 	Sec. 9. Minnesota Statutes 2020, section 256E.35, subdivision 2, is amended to read:
18.6 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
18.7 	(b) "Eligible educational institution" means the following:
18.8 	(1) an institution of higher education described in section 101 or 102 of the Higher 
18.9 	Education Act of 1965; or
18.10 	(2) an area vocational education school, as defined in subparagraph (C) or (D) of United 
18.11 	States Code, title 20, chapter 44, section 2302 (3) (the Carl D. Perkins Vocational and 
18.12 	Applied Technology Education Act), which is located within any state, as defined in United 
18.13 	States Code, title 20, chapter 44, section 2302 (30). This clause is applicable only to the 
18.14 	extent section 2302 is in effect on August 1, 2008.
18.15 	(c) "Family asset account" means a savings account opened by a household participating 
18.16 	in the Minnesota family assets for independence initiative.
18.17 	(d) "Fiduciary organization" means:
18.18 	(1) a community action agency that has obtained recognition under section 256E.31;
18.19 	(2) a federal community development credit union serving the seven-county metropolitan 
18.20 	area; or
18.21 	(3) a women-oriented economic development agency serving the seven-county 
18.22 	metropolitan area.;
18.23 	(4) a federally recognized Tribal nation; or
18.24 	(5) a nonprofit organization as defined under section 501(c)(3) of the Internal Revenue 
18.25 	Code.
18.26 	(e) "Financial coach" means a person who:
18.27 	(1) has completed an intensive financial literacy training workshop that includes 
18.28 	curriculum on budgeting to increase savings, debt reduction and asset building, building a 
18.29 	good credit rating, and consumer protection;
19.1 	(2) participates in ongoing statewide family assets for independence in Minnesota (FAIM) 
19.2 	network training meetings under FAIM program supervision; and
19.3 	(3) provides financial coaching to program participants under subdivision 4a.
19.4 	(f) "Financial institution" means a bank, bank and trust, savings bank, savings association, 
19.5 	or credit union, the deposits of which are insured by the Federal Deposit Insurance 
19.6 	Corporation or the National Credit Union Administration.
19.7 	(g) "Household" means all individuals who share use of a dwelling unit as primary 
19.8 	quarters for living and eating separate from other individuals.
19.9 	(h) "Permissible use" means:
19.10 	(1) postsecondary educational expenses at an eligible educational institution as defined 
19.11 	in paragraph (b), including books, supplies, and equipment required for courses of instruction;
19.12 	(2) acquisition costs of acquiring, constructing, or reconstructing a residence, including 
19.13 	any usual or reasonable settlement, financing, or other closing costs;
19.14 	(3) business capitalization expenses for expenditures on capital, plant, equipment, working 
19.15 	capital, and inventory expenses of a legitimate business pursuant to a business plan approved 
19.16 	by the fiduciary organization;
19.17 	(4) acquisition costs of a principal residence within the meaning of section 1034 of the 
19.18 	Internal Revenue Code of 1986 which do not exceed 100 percent of the average area purchase 
19.19 	price applicable to the residence determined according to section 143(e)(2) and (3) of the 
19.20 	Internal Revenue Code of 1986; and
19.21 	(5) acquisition costs of a personal vehicle only if approved by the fiduciary organization.;
19.22 	(6) contribution to an emergency savings account; and
19.23 	(7) contribution to a Minnesota 529 savings plan.

19.24 	Sec. 10. Minnesota Statutes 2020, section 256E.35, subdivision 4a, is amended to read:
19.25 		Subd. 4a.Financial coaching. A financial coach shall provide the following to program 
19.26 	participants:
19.27 	(1) financial education relating to budgeting, debt reduction, asset-specific training, 
19.28 	credit building, and financial stability activities;
19.29 	(2) asset-specific training related to buying a home or vehicle, acquiring postsecondary 
19.30 	education, or starting or expanding a small business, saving for emergencies, or saving for 
19.31 	a child's education; and
20.1 	(3) financial stability education and training to improve and sustain financial security.

20.2 	Sec. 11. Minnesota Statutes 2020, section 256E.35, subdivision 6, is amended to read:
20.3 		Subd. 6.Withdrawal; matching; permissible uses. (a) To receive a match, a 
20.4 	participating household must transfer funds withdrawn from a family asset account to its 
20.5 	matching fund custodial account held by the fiscal agent, according to the family asset 
20.6 	agreement. The fiscal agent must determine if the match request is for a permissible use 
20.7 	consistent with the household's family asset agreement.
20.8 	(b) The fiscal agent must ensure the household's custodial account contains the applicable 
20.9 	matching funds to match the balance in the household's account, including interest, on at 
20.10 	least a quarterly basis and at the time of an approved withdrawal. Matches must be a 
20.11 	contribution of $3 from state grant or TANF funds for every $1 of funds withdrawn from 
20.12 	the family asset account not to exceed a $6,000 $9,000 lifetime limit.
20.13 	(c) Notwithstanding paragraph (b), if funds are appropriated for the Federal Assets for 
20.14 	Independence Act of 1998, and a participating fiduciary organization is awarded a grant 
20.15 	under that act, participating households with that fiduciary organization must be provided 
20.16 	matches as follows:
20.17 	(1) from state grant and TANF funds, a matching contribution of $1.50 for every $1 of 
20.18 	funds withdrawn from the family asset account not to exceed a $3,000 $4,500 lifetime limit; 
20.19 	and
20.20 	(2) from nonstate funds, a matching contribution of not less than $1.50 for every $1 of 
20.21 	funds withdrawn from the family asset account not to exceed a $3,000 $4,500 lifetime limit.
20.22 	(d) Upon receipt of transferred custodial account funds, the fiscal agent must make a 
20.23 	direct payment to the vendor of the goods or services for the permissible use.

20.24 	Sec. 12. Minnesota Statutes 2020, section 256I.03, subdivision 13, is amended to read:
20.25 		Subd. 13.Prospective budgeting. "Prospective budgeting" means estimating the amount 
20.26 	of monthly income a person will have in the payment month has the meaning given in 
20.27 	section 256P.01, subdivision 9.

20.28 	Sec. 13. Minnesota Statutes 2020, section 256I.06, subdivision 6, is amended to read:
20.29 		Subd. 6.Reports. Recipients must report changes in circumstances according to section 
20.30 	256P.07that affect eligibility or housing support payment amounts, other than changes in 
20.31 	earned income, within ten days of the change. Recipients with countable earned income 
21.1 	must complete a household report form at least once every six months according to section 
21.2 	256P.10. If the report form is not received before the end of the month in which it is due, 
21.3 	the county agency must terminate eligibility for housing support payments. The termination 
21.4 	shall be effective on the first day of the month following the month in which the report was 
21.5 	due. If a complete report is received within the month eligibility was terminated, the 
21.6 	individual is considered to have continued an application for housing support payment 
21.7 	effective the first day of the month the eligibility was terminated.

21.8 	Sec. 14. Minnesota Statutes 2021 Supplement, section 256I.06, subdivision 8, is amended 
21.9 	to read:
21.10 		Subd. 8.Amount of housing support payment. (a) The amount of a room and board 
21.11 	payment to be made on behalf of an eligible individual is determined by subtracting the 
21.12 	individual's countable income under section 256I.04, subdivision 1, for a whole calendar 
21.13 	month from the room and board rate for that same month. The housing support payment is 
21.14 	determined by multiplying the housing support rate times the period of time the individual 
21.15 	was a resident or temporarily absent under section 256I.05, subdivision 2a.
21.16 	(b) For an individual with earned income under paragraph (a), prospective budgeting 
21.17 	according to section 256P.09 must be used to determine the amount of the individual's 
21.18 	payment for the following six-month period. An increase in income shall not affect an 
21.19 	individual's eligibility or payment amount until the month following the reporting month. 
21.20 	A decrease in income shall be effective the first day of the month after the month in which 
21.21 	the decrease is reported.
21.22 	(c) For an individual who receives housing support payments under section 256I.04, 
21.23 	subdivision 1, paragraph (c), the amount of the housing support payment is determined by 
21.24 	multiplying the housing support rate times the period of time the individual was a resident.

21.25 	Sec. 15. Minnesota Statutes 2020, section 256I.06, subdivision 10, is amended to read:
21.26 		Subd. 10.Correction of overpayments and underpayments. The agency shall make 
21.27 	an adjustment to housing support payments issued to individuals consistent with requirements 
21.28 	of federal law and regulation and state law and rule and shall issue or recover benefits as 
21.29 	appropriate. A recipient or former recipient is not responsible for overpayments due to 
21.30 	agency error, unless the amount of the overpayment is large enough that a reasonable person 
21.31 	would know it is an error.

22.1 	Sec. 16. Minnesota Statutes 2020, section 256I.09, is amended to read:
22.2 	256I.09 COMMUNITY LIVING INFRASTRUCTURE.
22.3 	The commissioner shall award grants to agencies through an annual competitive process. 
22.4 	Grants awarded under this section may be used for: (1) outreach to locate and engage people 
22.5 	who are homeless or residing in segregated settings to screen for basic needs and assist with 
22.6 	referral to community living resources; (2) building capacity to provide technical assistance 
22.7 	and consultation on housing and related support service resources for persons with both 
22.8 	disabilities and low income; or (3) streamlining the administration and monitoring activities 
22.9 	related to housing support funds; or (4) direct assistance to individuals to access or maintain 
22.10 	housing in community settings. Agencies may collaborate and submit a joint application 
22.11 	for funding under this section.

22.12 	Sec. 17. Minnesota Statutes 2020, section 256J.08, subdivision 71, is amended to read:
22.13 		Subd. 71.Prospective budgeting. "Prospective budgeting" means a method of 
22.14 	determining the amount of the assistance payment in which the budget month and payment 
22.15 	month are the same has the meaning given in section 256P.01, subdivision 9.

22.16 	Sec. 18. Minnesota Statutes 2020, section 256J.08, subdivision 79, is amended to read:
22.17 		Subd. 79.Recurring income. "Recurring income" means a form of income which is:
22.18 	(1) received periodically, and may be received irregularly when receipt can be anticipated 
22.19 	even though the date of receipt cannot be predicted; and
22.20 	(2) from the same source or of the same type that is received and budgeted in a 
22.21 	prospective month and is received in one or both of the first two retrospective months.

22.22 	Sec. 19. Minnesota Statutes 2021 Supplement, section 256J.21, subdivision 3, is amended 
22.23 	to read:
22.24 		Subd. 3.Initial income test. (a) The agency shall determine initial eligibility by 
22.25 	considering all earned and unearned income as defined in section 256P.06. To be eligible 
22.26 	for MFIP, the assistance unit's countable income minus the earned income disregards in 
22.27 	paragraph (a) and section 256P.03 must be below the family wage level according to section 
22.28 	256J.24, subdivision 7, for that size assistance unit.
22.29 	(a) (b) The initial eligibility determination must disregard the following items:
22.30 	(1) the earned income disregard as determined in section 256P.03;
23.1 	(2) dependent care costs must be deducted from gross earned income for the actual 
23.2 	amount paid for dependent care up to a maximum of $200 per month for each child less 
23.3 	than two years of age, and $175 per month for each child two years of age and older;
23.4 	(3) all payments made according to a court order for spousal support or the support of 
23.5 	children not living in the assistance unit's household shall be disregarded from the income 
23.6 	of the person with the legal obligation to pay support; and
23.7 	(4) an allocation for the unmet need of an ineligible spouse or an ineligible child under 
23.8 	the age of 21 for whom the caregiver is financially responsible and who lives with the 
23.9 	caregiver according to section 256J.36.
23.10 	(b) After initial eligibility is established, (c) The income test is for a six-month period.
23.11 	The assistance payment calculation is based on the monthly income test prospective budgeting 
23.12 	according to section 256P.09.

23.13 	Sec. 20. Minnesota Statutes 2020, section 256J.21, subdivision 4, is amended to read:
23.14 		Subd. 4.Monthly Income test and determination of assistance payment. The county 
23.15 	agency shall determine ongoing eligibility and the assistance payment amount according 
23.16 	to the monthly income test. To be eligible for MFIP, the result of the computations in 
23.17 	paragraphs (a) to (e) applied to prospective budgeting must be at least $1.
23.18 	(a) Apply an income disregard as defined in section 256P.03, to gross earnings and 
23.19 	subtract this amount from the family wage level. If the difference is equal to or greater than 
23.20 	the MFIP transitional standard, the assistance payment is equal to the MFIP transitional 
23.21 	standard. If the difference is less than the MFIP transitional standard, the assistance payment 
23.22 	is equal to the difference. The earned income disregard in this paragraph must be deducted 
23.23 	every month there is earned income.
23.24 	(b) All payments made according to a court order for spousal support or the support of 
23.25 	children not living in the assistance unit's household must be disregarded from the income 
23.26 	of the person with the legal obligation to pay support.
23.27 	(c) An allocation for the unmet need of an ineligible spouse or an ineligible child under 
23.28 	the age of 21 for whom the caregiver is financially responsible and who lives with the 
23.29 	caregiver must be made according to section 256J.36.
23.30 	(d) Subtract unearned income dollar for dollar from the MFIP transitional standard to 
23.31 	determine the assistance payment amount.
24.1 	(e) When income is both earned and unearned, the amount of the assistance payment 
24.2 	must be determined by first treating gross earned income as specified in paragraph (a). After 
24.3 	determining the amount of the assistance payment under paragraph (a), unearned income 
24.4 	must be subtracted from that amount dollar for dollar to determine the assistance payment 
24.5 	amount.
24.6 	(f) When the monthly income is greater than the MFIP transitional standard after 
24.7 	deductions and the income will only exceed the standard for one month, the county agency 
24.8 	must suspend the assistance payment for the payment month.

24.9 	Sec. 21. Minnesota Statutes 2021 Supplement, section 256J.33, subdivision 1, is amended 
24.10 	to read:
24.11 		Subdivision 1.Determination of eligibility. (a) A county agency must determine MFIP 
24.12 	eligibility prospectively for a payment month based on retrospectively assessing income 
24.13 	and the county agency's best estimate of the circumstances that will exist in the payment 
24.14 	month.
24.15 	(b) Except as described in section 256J.34, subdivision 1, when prospective eligibility 
24.16 	exists, A county agency must calculate the amount of the assistance payment using 
24.17 	retrospective prospective budgeting. To determine MFIP eligibility and the assistance 
24.18 	payment amount, a county agency must apply countable income, described in sections 
24.19 	256P.06 and 256J.37, subdivisions 3 to 10 9, received by members of an assistance unit or 
24.20 	by other persons whose income is counted for the assistance unit, described under sections 
24.21 	256J.37, subdivisions 1 to 2, and 256P.06, subdivision 1.
24.22 	(c) This income must be applied to the MFIP standard of need or family wage level 
24.23 	subject to this section and sections 256J.34 to 256J.36. Countable income as described in 
24.24 	section 256P.06, subdivision 3, received in a calendar month must be applied to the needs 
24.25 	of an assistance unit.
24.26 	(d) An assistance unit is not eligible when the countable income equals or exceeds the 
24.27 	MFIP standard of need or the family wage level for the assistance unit.

24.28 	Sec. 22. Minnesota Statutes 2020, section 256J.33, subdivision 2, is amended to read:
24.29 		Subd. 2.Prospective eligibility. An agency must determine whether the eligibility 
24.30 	requirements that pertain to an assistance unit, including those in sections 256J.11 to 256J.15
24.31 	and 256P.02, will be met prospectively for the payment month period. Except for the 
25.1 	provisions in section 256J.34, subdivision 1, The income test will be applied retrospectively
25.2 	prospectively.

25.3 	Sec. 23. Minnesota Statutes 2020, section 256J.37, subdivision 3, is amended to read:
25.4 		Subd. 3.Earned income of wage, salary, and contractual employees. The agency 
25.5 	must include gross earned income less any disregards in the initial and monthly income 
25.6 	test. Gross earned income received by persons employed on a contractual basis must be 
25.7 	prorated over the period covered by the contract even when payments are received over a 
25.8 	lesser period of time.

25.9 	Sec. 24. Minnesota Statutes 2020, section 256J.37, subdivision 3a, is amended to read:
25.10 		Subd. 3a.Rental subsidies; unearned income. (a) Effective July 1, 2003, the agency 
25.11 	shall count $50 of the value of public and assisted rental subsidies provided through the 
25.12 	Department of Housing and Urban Development (HUD) as unearned income to the cash 
25.13 	portion of the MFIP grant. The full amount of the subsidy must be counted as unearned 
25.14 	income when the subsidy is less than $50. The income from this subsidy shall be budgeted 
25.15 	according to section 256J.34 256P.09.
25.16 	(b) The provisions of this subdivision shall not apply to an MFIP assistance unit which 
25.17 	includes a participant who is:
25.18 	(1) age 60 or older;
25.19 	(2) a caregiver who is suffering from an illness, injury, or incapacity that has been 
25.20 	certified by a qualified professional when the illness, injury, or incapacity is expected to 
25.21 	continue for more than 30 days and severely limits the person's ability to obtain or maintain 
25.22 	suitable employment; or
25.23 	(3) a caregiver whose presence in the home is required due to the illness or incapacity 
25.24 	of another member in the assistance unit, a relative in the household, or a foster child in the 
25.25 	household when the illness or incapacity and the need for the participant's presence in the 
25.26 	home has been certified by a qualified professional and is expected to continue for more 
25.27 	than 30 days.
25.28 	(c) The provisions of this subdivision shall not apply to an MFIP assistance unit where 
25.29 	the parental caregiver is an SSI participant.

26.1 	Sec. 25. Minnesota Statutes 2020, section 256J.95, subdivision 19, is amended to read:
26.2 		Subd. 19.DWP overpayments and underpayments. DWP benefits are subject to 
26.3 	overpayments and underpayments. Anytime an overpayment or an underpayment is 
26.4 	determined for DWP, the correction shall be calculated using prospective budgeting. 
26.5 	Corrections shall be determined based on the policy in section 256J.34, subdivision 1, 
26.6 	paragraphs (a), (b), and (c) 256P.09, subdivisions 1 to 4. ATM errors must be recovered as 
26.7 	specified in section 256P.08, subdivision 7. Cross program recoupment of overpayments 
26.8 	cannot be assigned to or from DWP.

26.9 	Sec. 26. Minnesota Statutes 2020, section 256K.45, subdivision 3, is amended to read:
26.10 		Subd. 3.Street and community outreach and drop-in program. Youth drop-in centers 
26.11 	must provide walk-in access to crisis intervention and ongoing supportive services including 
26.12 	one-to-one case management services on a self-referral basis. Street and community outreach 
26.13 	programs must locate, contact, and provide information, referrals, and services to homeless 
26.14 	youth, youth at risk of homelessness, and runaways. Information, referrals, and services 
26.15 	provided may include, but are not limited to:
26.16 	(1) family reunification services;
26.17 	(2) conflict resolution or mediation counseling;
26.18 	(3) assistance in obtaining temporary emergency shelter;
26.19 	(4) assistance in obtaining food, clothing, medical care, or mental health counseling;
26.20 	(5) counseling regarding violence, sexual exploitation, substance abuse, sexually 
26.21 	transmitted diseases, and pregnancy;
26.22 	(6) referrals to other agencies that provide support services to homeless youth, youth at 
26.23 	risk of homelessness, and runaways;
26.24 	(7) assistance with education, employment, and independent living skills;
26.25 	(8) aftercare services;
26.26 	(9) specialized services for highly vulnerable runaways and homeless youth, including 
26.27 	teenbut not limited to youth at risk of discrimination based on sexual orientation or gender 
26.28 	identity, young parents, emotionally disturbed and mentally ill youth, and sexually exploited 
26.29 	youth; and
26.30 	(10) homelessness prevention.

27.1 	Sec. 27. Minnesota Statutes 2020, section 256P.01, is amended by adding a subdivision 
27.2 	to read:
27.3 		Subd. 9.Prospective budgeting. "Prospective budgeting" means estimating the amount 
27.4 	of monthly income that an assistance unit will have in the payment month.

27.5 	Sec. 28. Minnesota Statutes 2021 Supplement, section 256P.02, subdivision 1a, is amended 
27.6 	to read:
27.7 		Subd. 1a.Exemption. Participants who qualify for child care assistance programs under 
27.8 	chapter 119B are exempt from this section, except that the personal property identified in 
27.9 	subdivision 2 is counted toward the asset limit of the child care assistance program under 
27.10 	chapter 119B. Vehicles under subdivision 3 and accounts under subdivision 4 are not counted 
27.11 	toward the asset limit of the child care assistance program under chapter 119B.

27.12 	Sec. 29. Minnesota Statutes 2021 Supplement, section 256P.02, subdivision 2, is amended 
27.13 	to read:
27.14 		Subd. 2.Personal property limitations. The equity value of an assistance unit's personal 
27.15 	property listed in clauses (1) to (5) must not exceed $10,000 for applicants and participants. 
27.16 	For purposes of this subdivision, personal property is limited to:
27.17 	(1) cash;
27.18 	(2) bank accounts not excluded under subdivision 4;
27.19 	(3) liquid stocks and bonds that can be readily accessed without a financial penalty;
27.20 	(4) vehicles not excluded under subdivision 3; and
27.21 	(5) the full value of business accounts used to pay expenses not related to the business.

27.22 	Sec. 30. Minnesota Statutes 2020, section 256P.02, is amended by adding a subdivision 
27.23 	to read:
27.24 		Subd. 4.Account exception. Family asset accounts under section 256E.35 and individual 
27.25 	development accounts authorized under the Assets for Independence Act, Title IV of the 
27.26 	Community Opportunities, Accountability, and Training and Educational Services Human 
27.27 	Services Reauthorization Act of 1998, Public Law 105-285, shall be excluded when 
27.28 	determining the equity value of personal property.

28.1 	Sec. 31. Minnesota Statutes 2021 Supplement, section 256P.04, subdivision 4, is amended 
28.2 	to read:
28.3 		Subd. 4.Factors to be verified. (a) The agency shall verify the following at application:
28.4 	(1) identity of adults;
28.5 	(2) age, if necessary to determine eligibility;
28.6 	(3) immigration status;
28.7 	(4) income;
28.8 	(5) spousal support and child support payments made to persons outside the household;
28.9 	(6) vehicles;
28.10 	(7) checking and savings accounts, including but not limited to any business accounts 
28.11 	used to pay expenses not related to the business;
28.12 	(8) inconsistent information, if related to eligibility;
28.13 	(9) residence; and
28.14 	(10) Social Security number; and.
28.15 	(11) use of nonrecurring income under section 256P.06, subdivision 3, clause (2), item 
28.16 	(ix), for the intended purpose for which it was given and received.
28.17 	(b) Applicants who are qualified noncitizens and victims of domestic violence as defined 
28.18 	under section 256J.08, subdivision 73, clauses (8) and (9), are not required to verify the 
28.19 	information in paragraph (a), clause (10). When a Social Security number is not provided 
28.20 	to the agency for verification, this requirement is satisfied when each member of the 
28.21 	assistance unit cooperates with the procedures for verification of Social Security numbers, 
28.22 	issuance of duplicate cards, and issuance of new numbers which have been established 
28.23 	jointly between the Social Security Administration and the commissioner.

28.24 	Sec. 32. Minnesota Statutes 2021 Supplement, section 256P.04, subdivision 8, is amended 
28.25 	to read:
28.26 		Subd. 8.Recertification. The agency shall recertify eligibility annually. During 
28.27 	recertification and reporting under section 256P.10, the agency shall verify the following:
28.28 	(1) income, unless excluded, including self-employment earnings;
28.29 	(2) assets when the value is within $200 of the asset limit; and
28.30 	(3) inconsistent information, if related to eligibility.

29.1 	Sec. 33. Minnesota Statutes 2021 Supplement, section 256P.06, subdivision 3, is amended 
29.2 	to read:
29.3 		Subd. 3.Income inclusions. The following must be included in determining the income 
29.4 	of an assistance unit:
29.5 	(1) earned income; and
29.6 	(2) unearned income, which includes:
29.7 	(i) interest and dividends from investments and savings;
29.8 	(ii) capital gains as defined by the Internal Revenue Service from any sale of real property;
29.9 	(iii) proceeds from rent and contract for deed payments in excess of the principal and 
29.10 	interest portion owed on property;
29.11 	(iv) income from trusts, excluding special needs and supplemental needs trusts;
29.12 	(v) interest income from loans made by the participant or household;
29.13 	(vi) cash prizes and winnings;
29.14 	(vii) unemployment insurance income that is received by an adult member of the 
29.15 	assistance unit unless the individual receiving unemployment insurance income is:
29.16 	(A) 18 years of age and enrolled in a secondary school; or
29.17 	(B) 18 or 19 years of age, a caregiver, and is enrolled in school at least half-time;
29.18 	(viii) retirement, survivors, and disability insurance payments;
29.19 	(ix) nonrecurring income over $60 per quarter unless the nonrecurring income is: (A) 
29.20 	from tax refunds, tax rebates, or tax credits; (B) a reimbursement, rebate, award, grant, or 
29.21 	refund of personal or real property or costs or losses incurred when these payments are 
29.22 	made by: a public agency; a court; solicitations through public appeal; a federal, state, or 
29.23 	local unit of government; or a disaster assistance organization; (C) provided as an in-kind 
29.24 	benefit; or (D) earmarked and used for the purpose for which it was intended, subject to 
29.25 	verification requirements under section 256P.04;
29.26 	(x) (ix) retirement benefits;
29.27 	(xi) (x) cash assistance benefits, as defined by each program in chapters 119B, 256D, 
29.28 	256I, and 256J;
29.29 	(xii) (xi) Tribal per capita payments unless excluded by federal and state law;
30.1 	(xiii) (xii) income and payments from service and rehabilitation programs that meet or 
30.2 	exceed the state's minimum wage rate;
30.3 	(xiv) (xiii) income from members of the United States armed forces unless excluded 
30.4 	from income taxes according to federal or state law;
30.5 	(xv) (xiv) all child support payments for programs under chapters 119B, 256D, and 256I;
30.6 	(xvi) (xv) the amount of child support received that exceeds $100 for assistance units 
30.7 	with one child and $200 for assistance units with two or more children for programs under 
30.8 	chapter 256J;
30.9 	(xvii) (xvi) spousal support; and
30.10 	(xviii) (xvii) workers' compensation.

30.11 	Sec. 34. Minnesota Statutes 2020, section 256P.07, subdivision 1, is amended to read:
30.12 		Subdivision 1.Exempted programs. Participants who receive Supplemental Security 
30.13 	Income and qualify for Minnesota supplemental aid under chapter 256D and or for housing 
30.14 	support under chapter 256I on the basis of eligibility for Supplemental Security Income are 
30.15 	exempt from this section reporting income under this chapter.

30.16 	Sec. 35. Minnesota Statutes 2020, section 256P.07, is amended by adding a subdivision 
30.17 	to read:
30.18 		Subd. 1a.Child care assistance programs. Participants who qualify for child care 
30.19 	assistance programs under chapter 119B are exempt from this section except the reporting 
30.20 	requirements in subdivision 6.

30.21 	Sec. 36. Minnesota Statutes 2020, section 256P.07, subdivision 2, is amended to read:
30.22 		Subd. 2.Reporting requirements. An applicant or participant must provide information 
30.23 	on an application and any subsequent reporting forms about the assistance unit's 
30.24 	circumstances that affect eligibility or benefits. An applicant or assistance unit must report 
30.25 	changes that affect eligibility or benefits as identified in subdivision subdivisions 3, 4, 5, 
30.26 	7, 8, and 9, during the application period or by the tenth of the month following the month 
30.27 	the assistance unit's circumstances changed. When information is not accurately reported, 
30.28 	both an overpayment and a referral for a fraud investigation may result. When information 
30.29 	or documentation is not provided, the receipt of any benefit may be delayed or denied, 
30.30 	depending on the type of information required and its effect on eligibility.

31.1 	Sec. 37. Minnesota Statutes 2020, section 256P.07, subdivision 3, is amended to read:
31.2 		Subd. 3.Changes that must be reported. An assistance unit must report the changes 
31.3 	or anticipated changes specified in clauses (1) to (12) within ten days of the date they occur, 
31.4 	at the time of recertification of eligibility under section 256P.04, subdivisions 8 and 9, or 
31.5 	within eight calendar days of a reporting period, whichever occurs first. An assistance unit 
31.6 	must report other changes at the time of recertification of eligibility under section 256P.04, 
31.7 	subdivisions 8 and 9, or at the end of a reporting period, as applicable. When an agency 
31.8 	could have reduced or terminated assistance for one or more payment months if a delay in 
31.9 	reporting a change specified under clauses (1) to (12) had not occurred, the agency must 
31.10 	determine whether a timely notice could have been issued on the day that the change 
31.11 	occurred. When a timely notice could have been issued, each month's overpayment 
31.12 	subsequent to that notice must be considered a client error overpayment under section 
31.13 	119B.11, subdivision 2a, or 256P.08. Changes in circumstances that must be reported within 
31.14 	ten days must also be reported for the reporting period in which those changes occurred. 
31.15 	Within ten days, an assistance unit must report:
31.16 	(1) a change in earned income of $100 per month or greater with the exception of a 
31.17 	program under chapter 119B;
31.18 	(2) a change in unearned income of $50 per month or greater with the exception of a 
31.19 	program under chapter 119B;
31.20 	(3) a change in employment status and hours with the exception of a program under 
31.21 	chapter 119B;
31.22 	(4) a change in address or residence;
31.23 	(5) a change in household composition with the exception of programs under chapter 
31.24 	256I;
31.25 	(6) a receipt of a lump-sum payment with the exception of a program under chapter 
31.26 	119B;
31.27 	(7) an increase in assets if over $9,000 with the exception of programs under chapter 
31.28 	119B;
31.29 	(8) a change in citizenship or immigration status;
31.30 	(9) a change in family status with the exception of programs under chapter 256I;
31.31 	(10) a change in disability status of a unit member, with the exception of programs under 
31.32 	chapter 119B;
32.1 	(11) a new rent subsidy or a change in rent subsidy with the exception of a program 
32.2 	under chapter 119B; and
32.3 	(12) a sale, purchase, or transfer of real property with the exception of a program under 
32.4 	chapter 119B.
32.5 	(a) An assistance unit must report changes or anticipated changes as described in this 
32.6 	subdivision.
32.7 	(b) An assistance unit must report:
32.8 	(1) a change in eligibility for Supplemental Security Income, Retirement Survivors 
32.9 	Disability Insurance, or another federal income support;
32.10 	(2) a change in address or residence;
32.11 	(3) a change in household composition with the exception of programs under chapter 
32.12 	256I;
32.13 	(4) cash prizes and winnings according to guidance provided for the Supplemental 
32.14 	Nutrition Assistance Program;
32.15 	(5) a change in citizenship or immigration status;
32.16 	(6) a change in family status with the exception of programs under chapter 256I; and
32.17 	(7) a change that makes the value of the unit's assets at or above the asset limit.
32.18 	(c) When an agency could have reduced or terminated assistance for one or more payment 
32.19 	months if a delay in reporting a change specified under paragraph (b) had not occurred, the 
32.20 	agency must determine whether the agency could have issued a timely notice on the day 
32.21 	that the change occurred. When a timely notice could have been issued, each month's 
32.22 	overpayment subsequent to the notice must be considered a client error overpayment under 
32.23 	section 256P.08.

32.24 	Sec. 38. Minnesota Statutes 2020, section 256P.07, subdivision 4, is amended to read:
32.25 		Subd. 4.MFIP-specific reporting. In addition to subdivision 3, an assistance unit under 
32.26 	chapter 256J, within ten days of the change, must report:
32.27 	(1) a pregnancy not resulting in birth when there are no other minor children; and
32.28 	(2) a change in school attendance of a parent under 20 years of age or of an employed 
32.29 	child.; and
33.1 	(3) an individual in the household who is 18 or 19 years of age attending high school 
33.2 	who graduates or drops out of school.

33.3 	Sec. 39. Minnesota Statutes 2020, section 256P.07, subdivision 6, is amended to read:
33.4 		Subd. 6.Child care assistance programs-specific reporting. (a) In addition to 
33.5 	subdivision 3, An assistance unit under chapter 119B, within ten days of the change, must 
33.6 	report:
33.7 	(1) a change in a parentally responsible individual's custody schedule for any child 
33.8 	receiving child care assistance program benefits;
33.9 	(2) a permanent end in a parentally responsible individual's authorized activity; and
33.10 	(3) if the unit's family's annual included income exceeds 85 percent of the state median 
33.11 	income, adjusted for family size.;
33.12 	(4) a change in address or residence;
33.13 	(5) a change in household composition;
33.14 	(6) a change in citizenship or immigration status; and
33.15 	(7) a change in family status.
33.16 	(b) An assistance unit subject to section 119B.095, subdivision 1, paragraph (b), must 
33.17 	report a change in the unit's authorized activity status.
33.18 	(c) An assistance unit must notify the county when the unit wants to reduce the number 
33.19 	of authorized hours for children in the unit.

33.20 	Sec. 40. Minnesota Statutes 2020, section 256P.07, subdivision 7, is amended to read:
33.21 		Subd. 7.Minnesota supplemental aid-specific reporting. (a) In addition to subdivision 
33.22 	3, an assistance unit participating in the Minnesota supplemental aid program under section 
33.23 	256D.44, subdivision 5, paragraph (g), within ten days of the change, chapter 256D and not 
33.24 	receiving Supplemental Security Income must report shelter expenses.:
33.25 	(1) a change in unearned income of $50 per month or greater; and
33.26 	(2) a change in earned income of $100 per month or greater.
33.27 	(b) An assistance unit receiving housing assistance under section 256D.44, subdivision 
33.28 	5, paragraph (g), including assistance units that also receive Supplemental Security Income, 
33.29 	must report:
34.1 	(1) a change in shelter expenses; and
34.2 	(2) a new rent subsidy or a change in rent subsidy.

34.3 	Sec. 41. Minnesota Statutes 2020, section 256P.07, is amended by adding a subdivision 
34.4 	to read:
34.5 		Subd. 8.Housing support-specific reporting. (a) In addition to subdivision 3, an 
34.6 	assistance unit participating in the housing support program under chapter 256I and not 
34.7 	receiving Supplemental Security Income must report:
34.8 	(1) a change in unearned income of $50 per month or greater; and
34.9 	(2) a change in earned income of $100 per month or greater, unless the assistance unit 
34.10 	is already subject to six-month reporting requirements in section 256P.10.
34.11 	(b) Notwithstanding the exemptions in subdivisions 1 and 3, an assistance unit receiving 
34.12 	housing support under chapter 256I, including an assistance unit that receives Supplemental 
34.13 	Security Income, must report:
34.14 	(1) a new rent subsidy or a change in rent subsidy;
34.15 	(2) a change in the disability status of a unit member; and
34.16 	(3) a change in household composition if the assistance unit is a participant in housing 
34.17 	support under section 256I.04, subdivision 3, paragraph (a), clause (3).

34.18 	Sec. 42. Minnesota Statutes 2020, section 256P.07, is amended by adding a subdivision 
34.19 	to read:
34.20 		Subd. 9.General assistance-specific reporting. In addition to subdivision 3, an 
34.21 	assistance unit participating in the general assistance program under chapter 256D must 
34.22 	report:
34.23 	(1) a change in unearned income of $50 per month or greater;
34.24 	(2) a change in earned income of $100 per month or greater, unless the assistance unit 
34.25 	is already subject to six-month reporting requirements in section 256P.10; and
34.26 	(3) changes in any condition that would result in the loss of basis for eligibility in section 
34.27 	256D.05, subdivision 1, paragraph (a).

35.1 	Sec. 43. Minnesota Statutes 2020, section 256P.08, subdivision 2, is amended to read:
35.2 		Subd. 2.Scope of overpayment. (a) When a participant or former participant receives 
35.3 	an overpayment due to client or ATM error, or due to assistance received while an appeal 
35.4 	is pending and the participant or former participant is determined ineligible for assistance 
35.5 	or for less assistance than was received, except as provided for interim assistance in section 
35.6 	256D.06, subdivision 5, the county agency must recoup or recover the overpayment using 
35.7 	the following methods:
35.8 	(1) reconstruct each affected budget month and corresponding payment month;
35.9 	(2) use the policies and procedures that were in effect for the payment month; and
35.10 	(3) do not allow employment disregards in the calculation of the overpayment when the 
35.11 	unit has not reported within two calendar months following the end of the month in which 
35.12 	the income was received.
35.13 	(b) Establishment of an overpayment is limited to six years prior to the month of discovery 
35.14 	due to client error or an intentional program violation determined under section 256.046.
35.15 	(c) A participant or former participant is not responsible for overpayments due to agency 
35.16 	error, unless the amount of the overpayment is large enough that a reasonable person would 
35.17 	know it is an error.

35.18 	Sec. 44. [256P.09] PROSPECTIVE BUDGETING OF BENEFITS.
35.19 		Subdivision 1.Exempted programs. Assistance units that qualify for child care 
35.20 	assistance programs under chapter 119B, assistance units that receive housing support under 
35.21 	chapter 256I and are not subject to reporting under section 256P.10, and assistance units 
35.22 	that qualify for Minnesota supplemental aid under chapter 256D are exempt from this 
35.23 	section.
35.24 		Subd. 2.Prospective budgeting of benefits. An agency subject to this chapter must use 
35.25 	prospective budgeting to calculate the assistance payment amount.
35.26 		Subd. 3.Initial income. For the purpose of determining an assistance unit's level of 
35.27 	benefits, an agency must take into account the income already received by the assistance 
35.28 	unit during or anticipated to be received during the application period. Income anticipated 
35.29 	to be received only in the initial month of eligibility should only be counted in the initial 
35.30 	month.
35.31 		Subd. 4.Income determination. An agency must use prospective budgeting to determine 
35.32 	the amount of the assistance unit's benefit for the eligibility period based on the best 
36.1 	information available at the time of approval. An agency shall only count anticipated income 
36.2 	when the participant and the agency are reasonably certain of the amount of the payment 
36.3 	and the month in which the payment will be received. If the exact amount of the income is 
36.4 	not known, the agency shall consider only the amounts that can be anticipated as income.
36.5 		Subd. 5.Income changes. An increase in income shall not affect an assistance unit's 
36.6 	eligibility or benefit amount until the next review unless otherwise required to be reported 
36.7 	in section 256P.07. A decrease in income shall be effective on the date that the change 
36.8 	occurs if the change is reported by the tenth of the month following the month when the 
36.9 	change occurred. If the assistant unit does not report the change in income by the tenth of 
36.10 	the month following the month when the change occurred, the change in income shall be 
36.11 	effective on the date the change was reported.

36.12 	Sec. 45. HOMELESSNESS AND HOUSING STABILITY WORKFORCE STUDY.
 36.13 	The commissioner of human services must conduct a survey to study workforce 
36.14 	information, including average wage and benefits, among other elements, for workers in 
36.15 	emergency shelters, transitional housing, street outreach, and site-based housing for long-term 
36.16 	homeless supportive services programs. The commissioner must submit a report to the 
36.17 	chairs and ranking minority members of the legislative committees and divisions with 
36.18 	jurisdiction over housing and homelessness issues by February 1, 2024. The report must 
36.19 	comply with Minnesota Statutes, sections 3.195 and 3.197.

36.20 	Sec. 46. DIRECTION TO THE COMMISSIONER OF HUMAN SERVICES; CHILD 
36.21 	CARE AND DEVELOPMENT FUND ALLOCATION.
 36.22 	The commissioner of human services shall allocate $75,364,000 in fiscal year 2023 from 
36.23 	the child care and development fund for rate and registration fee increases under Minnesota 
36.24 	Statutes, section 119B.13, subdivision 1, paragraphs (a) and (j). This is a onetime allocation.

36.25 	Sec. 47. REPEALER.
 36.26 	(a) Minnesota Statutes 2020, sections 256J.08, subdivisions 10, 61, 62, 81, and 83; 
36.27 	256J.30, subdivisions 5 and 7; 256J.33, subdivisions 3 and 5; 256J.34, subdivisions 1, 2, 3, 
36.28 	and 4; and 256J.37, subdivision 10, are repealed.
36.29 	(b) Minnesota Statutes 2021 Supplement, sections 256J.08, subdivision 53; 256J.30, 
36.30 	subdivision 8; and 256J.33, subdivision 4, are repealed.

37.1 	ARTICLE 3
37.2 	BEHAVIORAL HEALTH

37.3 	Section 1. Minnesota Statutes 2020, section 62N.25, subdivision 5, is amended to read:
37.4 		Subd. 5.Benefits. Community integrated service networks must offer the health 
37.5 	maintenance organization benefit set, as defined in chapter 62D, and other laws applicable 
37.6 	to entities regulated under chapter 62D. Community networks and chemical dependency 
37.7 	facilities under contract with a community network shall use the assessment criteria in 
37.8 	Minnesota Rules, parts 9530.6600 to 9530.6655, section 245G.05 when assessing enrollees 
37.9 	for chemical dependency treatment.

37.10 	EFFECTIVE DATE. This section is effective July 1, 2022.

37.11 	Sec. 2. Minnesota Statutes 2020, section 62Q.1055, is amended to read:
37.12 	62Q.1055 CHEMICAL DEPENDENCY.
37.13 	All health plan companies shall use the assessment criteria in Minnesota Rules, parts 
37.14 	9530.6600 to 9530.6655, section 245G.05 when assessing and placing treating enrollees 
37.15 	for chemical dependency treatment.

37.16 	EFFECTIVE DATE. This section is effective July 1, 2022.

37.17 	Sec. 3. Minnesota Statutes 2020, section 62Q.47, is amended to read:
37.18 	62Q.47 ALCOHOLISM, MENTAL HEALTH, AND CHEMICAL DEPENDENCY 
37.19 	SERVICES.
37.20 	(a) All health plans, as defined in section 62Q.01, that provide coverage for alcoholism, 
37.21 	mental health, or chemical dependency services, must comply with the requirements of this 
37.22 	section.
37.23 	(b) Cost-sharing requirements and benefit or service limitations for outpatient mental 
37.24 	health and outpatient chemical dependency and alcoholism services, except for persons 
37.25 	placed in seeking chemical dependency services under Minnesota Rules, parts 9530.6600 
37.26 	to 9530.6655 section 245G.05, must not place a greater financial burden on the insured or 
37.27 	enrollee, or be more restrictive than those requirements and limitations for outpatient medical 
37.28 	services.
37.29 	(c) Cost-sharing requirements and benefit or service limitations for inpatient hospital 
37.30 	mental health and inpatient hospital and residential chemical dependency and alcoholism 
37.31 	services, except for persons placed in seeking chemical dependency services under Minnesota 
38.1 	Rules, parts 9530.6600 to 9530.6655 section 245G.05, must not place a greater financial 
38.2 	burden on the insured or enrollee, or be more restrictive than those requirements and 
38.3 	limitations for inpatient hospital medical services.
38.4 	(d) A health plan company must not impose an NQTL with respect to mental health and 
38.5 	substance use disorders in any classification of benefits unless, under the terms of the health 
38.6 	plan as written and in operation, any processes, strategies, evidentiary standards, or other 
38.7 	factors used in applying the NQTL to mental health and substance use disorders in the 
38.8 	classification are comparable to, and are applied no more stringently than, the processes, 
38.9 	strategies, evidentiary standards, or other factors used in applying the NQTL with respect 
38.10 	to medical and surgical benefits in the same classification.
38.11 	(e) All health plans must meet the requirements of the federal Mental Health Parity Act 
38.12 	of 1996, Public Law 104-204; Paul Wellstone and Pete Domenici Mental Health Parity and 
38.13 	Addiction Equity Act of 2008; the Affordable Care Act; and any amendments to, and federal 
38.14 	guidance or regulations issued under, those acts.
38.15 	(f) The commissioner may require information from health plan companies to confirm 
38.16 	that mental health parity is being implemented by the health plan company. Information 
38.17 	required may include comparisons between mental health and substance use disorder 
38.18 	treatment and other medical conditions, including a comparison of prior authorization 
38.19 	requirements, drug formulary design, claim denials, rehabilitation services, and other 
38.20 	information the commissioner deems appropriate.
38.21 	(g) Regardless of the health care provider's professional license, if the service provided 
38.22 	is consistent with the provider's scope of practice and the health plan company's credentialing 
38.23 	and contracting provisions, mental health therapy visits and medication maintenance visits 
38.24 	shall be considered primary care visits for the purpose of applying any enrollee cost-sharing 
38.25 	requirements imposed under the enrollee's health plan.
38.26 	(h) By June 1 of each year, beginning June 1, 2021, the commissioner of commerce, in 
38.27 	consultation with the commissioner of health, shall submit a report on compliance and 
38.28 	oversight to the chairs and ranking minority members of the legislative committees with 
38.29 	jurisdiction over health and commerce. The report must:
38.30 	(1) describe the commissioner's process for reviewing health plan company compliance 
38.31 	with United States Code, title 42, section 18031(j), any federal regulations or guidance 
38.32 	relating to compliance and oversight, and compliance with this section and section 62Q.53;
38.33 	(2) identify any enforcement actions taken by either commissioner during the preceding 
38.34 	12-month period regarding compliance with parity for mental health and substance use 
39.1 	disorders benefits under state and federal law, summarizing the results of any market conduct 
39.2 	examinations. The summary must include: (i) the number of formal enforcement actions 
39.3 	taken; (ii) the benefit classifications examined in each enforcement action; and (iii) the 
39.4 	subject matter of each enforcement action, including quantitative and nonquantitative 
39.5 	treatment limitations;
39.6 	(3) detail any corrective action taken by either commissioner to ensure health plan 
39.7 	company compliance with this section, section 62Q.53, and United States Code, title 42, 
39.8 	section 18031(j); and
39.9 	(4) describe the information provided by either commissioner to the public about 
39.10 	alcoholism, mental health, or chemical dependency parity protections under state and federal 
39.11 	law.
39.12 	The report must be written in nontechnical, readily understandable language and must be 
39.13 	made available to the public by, among other means as the commissioners find appropriate, 
39.14 	posting the report on department websites. Individually identifiable information must be 
39.15 	excluded from the report, consistent with state and federal privacy protections.

39.16 	EFFECTIVE DATE. This section is effective July 1, 2022.

39.17 	Sec. 4. Minnesota Statutes 2020, section 169A.70, subdivision 3, is amended to read:
39.18 		Subd. 3.Assessment report. (a) The assessment report must be on a form prescribed 
39.19 	by the commissioner and shall contain an evaluation of the convicted defendant concerning 
39.20 	the defendant's prior traffic and criminal record, characteristics and history of alcohol and 
39.21 	chemical use problems, and amenability to rehabilitation through the alcohol safety program. 
39.22 	The report is classified as private data on individuals as defined in section 13.02, subdivision 
39.23 	12.
39.24 	(b) The assessment report must include:
39.25 	(1) a diagnosis of the nature of the offender's chemical and alcohol involvement;
39.26 	(2) an assessment of the severity level of the involvement;
39.27 	(3) a recommended level of care for the offender in accordance with the criteria contained 
39.28 	in rules adopted by the commissioner of human services under section 254A.03, subdivision 
39.29 	3 (chemical dependency treatment rules) section 245G.05;
39.30 	(4) an assessment of the offender's placement needs;
39.31 	(5) recommendations for other appropriate remedial action or care, including aftercare 
39.32 	services in section 254B.01, subdivision 3, that may consist of educational programs, 
40.1 	one-on-one counseling, a program or type of treatment that addresses mental health concerns, 
40.2 	or a combination of them; and
40.3 	(6) a specific explanation why no level of care or action was recommended, if applicable.

40.4 	EFFECTIVE DATE. This section is effective July 1, 2022.

40.5 	Sec. 5. Minnesota Statutes 2020, section 169A.70, subdivision 4, is amended to read:
40.6 		Subd. 4.Assessor standards; rules; assessment time limits. A chemical use assessment 
40.7 	required by this section must be conducted by an assessor appointed by the court. The 
40.8 	assessor must meet the training and qualification requirements of rules adopted by the 
40.9 	commissioner of human services under section 254A.03, subdivision 3 (chemical dependency 
40.10 	treatment rules) section 245G.11, subdivisions 1 and 5. Notwithstanding section 13.82 (law 
40.11 	enforcement data), the assessor shall have access to any police reports, laboratory test results, 
40.12 	and other law enforcement data relating to the current offense or previous offenses that are 
40.13 	necessary to complete the evaluation. An assessor providing an assessment under this section 
40.14 	may not have any direct or shared financial interest or referral relationship resulting in 
40.15 	shared financial gain with a treatment provider, except as authorized under section 254A.19, 
40.16 	subdivision 3. If an independent assessor is not available, the court may use the services of 
40.17 	an assessor authorized to perform assessments for the county social services agency under 
40.18 	a variance granted under rules adopted by the commissioner of human services under section 
40.19 	254A.03, subdivision 3. An appointment for the defendant to undergo the assessment must 
40.20 	be made by the court, a court services probation officer, or the court administrator as soon 
40.21 	as possible but in no case more than one week after the defendant's court appearance. The 
40.22 	assessment must be completed no later than three weeks after the defendant's court 
40.23 	appearance. If the assessment is not performed within this time limit, the county where the 
40.24 	defendant is to be sentenced shall perform the assessment. The county of financial 
40.25 	responsibility must be determined under chapter 256G.

40.26 	EFFECTIVE DATE. This section is effective July 1, 2022.

40.27 	Sec. 6. [245.4866] CHILDREN'S MENTAL HEALTH COMMUNITY OF 
40.28 	PRACTICE.
40.29 		Subdivision 1.Establishment; purpose. The commissioner of human services, in 
40.30 	consultation with children's mental health subject matter experts, shall establish a children's 
40.31 	mental health community of practice. The purposes of the community of practice are to 
40.32 	improve treatment outcomes for children and adolescents with mental illness and reduce 
41.1 	disparities. The community of practice shall use evidence-based and best practices through 
41.2 	peer-to-peer and person-to-provider sharing.
41.3 		Subd. 2.Participants; meetings. (a) The community of practice must include the 
41.4 	following participants:
41.5 	(1) researchers or members of the academic community who are children's mental health 
41.6 	subject matter experts who do not have financial relationships with treatment providers;
41.7 	(2) children's mental health treatment providers;
41.8 	(3) a representative from a mental health advocacy organization;
41.9 	(4) a representative from the Department of Human Services;
41.10 	(5) a representative from the Department of Health;
41.11 	(6) a representative from the Department of Education;
41.12 	(7) representatives from county social services agencies;
41.13 	(8) representatives from Tribal nations or Tribal social services providers; and
41.14 	(9) representatives from managed care organizations.
41.15 	(b) The community of practice must include, to the extent possible, individuals and 
41.16 	family members who have used mental health treatment services and must highlight the 
41.17 	voices and experiences of individuals who are Black, Indigenous, people of color, and 
41.18 	people from other communities that are disproportionately impacted by mental illness.
41.19 	(c) The community of practice must meet regularly and must hold its first meeting before 
41.20 	January 1, 2023.
41.21 	(d) Compensation and reimbursement for expenses for participants in paragraph (b) are 
41.22 	governed by section 15.059, subdivision 3.
41.23 		Subd. 3.Duties. (a) The community of practice must:
41.24 	(1) identify gaps in children's mental health treatment services;
41.25 	(2) enhance collective knowledge of issues related to children's mental health;
41.26 	(3) understand evidence-based practices, best practices, and promising approaches to 
41.27 	address children's mental health;
41.28 	(4) use knowledge gathered through the community of practice to develop strategic plans 
41.29 	to improve outcomes for children who participate in mental health treatment and related 
41.30 	services in Minnesota;
42.1 	(5) increase knowledge about the challenges and opportunities learned by implementing 
42.2 	strategies; and
42.3 	(6) develop capacity for community advocacy.
42.4 	(b) The commissioner, in collaboration with subject matter experts and other participants, 
42.5 	may issue reports and recommendations to the chairs and ranking minority members of the 
42.6 	legislative committees with jurisdiction over health and human services policy and finance 
42.7 	and to local and regional governments.

42.8 	Sec. 7. Minnesota Statutes 2021 Supplement, section 245.4889, subdivision 1, is amended 
42.9 	to read:
42.10 		Subdivision 1.Establishment and authority. (a) The commissioner is authorized to 
42.11 	make grants from available appropriations to assist:
42.12 	(1) counties;
42.13 	(2) Indian tribes;
42.14 	(3) children's collaboratives under section 124D.23 or 245.493; or
42.15 	(4) mental health service providers.
42.16 	(b) The following services are eligible for grants under this section:
42.17 	(1) services to children with emotional disturbances as defined in section 245.4871, 
42.18 	subdivision 15, and their families;
42.19 	(2) transition services under section 245.4875, subdivision 8, for young adults under 
42.20 	age 21 and their families;
42.21 	(3) respite care services for children with emotional disturbances or severe emotional 
42.22 	disturbances who are at risk of out-of-home placement or already in out-of-home placement 
42.23 	in family foster settings as defined in chapter 245A and at risk of change in out-of-home 
42.24 	placement or placement in a residential facility or other higher level of care. Allowable 
42.25 	activities and expenses for respite care services are defined under subdivision 4. A child is 
42.26 	not required to have case management services to receive respite care services;
42.27 	(4) children's mental health crisis services;
42.28 	(5) mental health services for people from cultural and ethnic minorities, including 
42.29 	supervision of clinical trainees who are Black, indigenous, or people of color;
42.30 	(6) children's mental health screening and follow-up diagnostic assessment and treatment;
43.1 	(7) services to promote and develop the capacity of providers to use evidence-based 
43.2 	practices in providing children's mental health services;
43.3 	(8) school-linked mental health services under section 245.4901;
43.4 	(9) building evidence-based mental health intervention capacity for children birth to age 
43.5 	five;
43.6 	(10) suicide prevention and counseling services that use text messaging statewide;
43.7 	(11) mental health first aid training;
43.8 	(12) training for parents, collaborative partners, and mental health providers on the 
43.9 	impact of adverse childhood experiences and trauma and development of an interactive 
43.10 	website to share information and strategies to promote resilience and prevent trauma;
43.11 	(13) transition age services to develop or expand mental health treatment and supports 
43.12 	for adolescents and young adults 26 years of age or younger;
43.13 	(14) early childhood mental health consultation;
43.14 	(15) evidence-based interventions for youth at risk of developing or experiencing a first 
43.15 	episode of psychosis, and a public awareness campaign on the signs and symptoms of 
43.16 	psychosis;
43.17 	(16) psychiatric consultation for primary care practitioners; and
43.18 	(17) providers to begin operations and meet program requirements when establishing a 
43.19 	new children's mental health program. These may be start-up grants.; and
43.20 	(18) evidence-informed interventions for youth and young adults who are at risk of 
43.21 	developing a mood disorder or are experiencing an emerging mood disorder, including 
43.22 	major depression and bipolar disorders, and a public awareness campaign on the signs and 
43.23 	symptoms of mood disorders in youth and young adults.
43.24 	(c) Services under paragraph (b) must be designed to help each child to function and 
43.25 	remain with the child's family in the community and delivered consistent with the child's 
43.26 	treatment plan. Transition services to eligible young adults under this paragraph must be 
43.27 	designed to foster independent living in the community.
43.28 	(d) As a condition of receiving grant funds, a grantee shall obtain all available third-party 
43.29 	reimbursement sources, if applicable.

43.30 	EFFECTIVE DATE. This section is effective July 1, 2022.

44.1 	Sec. 8. Minnesota Statutes 2020, section 245.4889, is amended by adding a subdivision 
44.2 	to read:
44.3 		Subd. 4.Respite care services. Respite care services under subdivision 1, paragraph 
44.4 	(b), clause (3), include hourly or overnight stays at a licensed foster home or with a qualified 
44.5 	and approved family member or friend and may occur at a child's or provider's home. Respite 
44.6 	care services may also include the following activities and expenses:
44.7 	(1) recreational, sport, and nonsport extracurricular activities and programs for the child 
44.8 	including camps, clubs, activities, lessons, group outings, sports, or other activities and 
44.9 	programs;
44.10 	(2) family activities, camps, and retreats that the family does together and provide a 
44.11 	break from the family's circumstance;
44.12 	(3) cultural programs and activities for the child and family designed to address the 
44.13 	unique needs of individuals who share a common language, racial, ethnic, or social 
44.14 	background; and
44.15 	(4) costs of transportation, food, supplies, and equipment directly associated with 
44.16 	approved respite care services and expenses necessary for the child and family to access 
44.17 	and participate in respite care services.

44.18 	EFFECTIVE DATE. This section is effective July 1, 2022.

44.19 	Sec. 9. [245.4903] FIRST EPISODE OF PSYCHOSIS GRANT PROGRAM.
44.20 		Subdivision 1.Creation. The first episode of psychosis grant program is established in 
44.21 	the Department of Human Services to fund evidence-based interventions for youth at risk 
44.22 	of developing or experiencing a first episode of psychosis and a public awareness campaign 
44.23 	on the signs and symptoms of psychosis. First episode of psychosis services are eligible for 
44.24 	children's mental health grants as specified in section 245.4889, subdivision 1, paragraph 
44.25 	(b), clause (15).
44.26 		Subd. 2.Activities. (a) All first episode of psychosis grant programs must:
44.27 	(1) provide intensive treatment and support for adolescents and adults experiencing or 
44.28 	at risk of experiencing a first psychotic episode. Intensive treatment and support includes 
44.29 	medication management, psychoeducation for an individual and an individual's family, case 
44.30 	management, employment support, education support, cognitive behavioral approaches, 
44.31 	social skills training, peer support, crisis planning, and stress management;
45.1 	(2) conduct outreach and provide training and guidance to mental health and health care 
45.2 	professionals, including postsecondary health clinicians, on early psychosis symptoms, 
45.3 	screening tools, and best practices;
45.4 	(3) ensure access for individuals to first psychotic episode services under this section, 
45.5 	including access for individuals who live in rural areas; and
45.6 	(4) use all available funding streams.
45.7 	(b) Grant money may also be used to pay for housing or travel expenses for individuals 
45.8 	receiving services or to address other barriers preventing individuals and their families from 
45.9 	participating in first psychotic episode services.
45.10 		Subd. 3.Eligibility. Program activities must be provided to people 15 to 40 years old 
45.11 	with early signs of psychosis.
45.12 		Subd. 4.Outcomes. Evaluation of program activities must utilize evidence-based 
45.13 	practices and must include the following outcome evaluation criteria:
45.14 	(1) whether individuals experience a reduction in psychotic symptoms;
45.15 	(2) whether individuals experience a decrease in inpatient mental health hospitalizations; 
45.16 	and
45.17 	(3) whether individuals experience an increase in educational attainment.
45.18 		Subd. 5.Federal aid or grants. The commissioner of human services must comply with 
45.19 	all conditions and requirements necessary to receive federal aid or grants.

45.20 	Sec. 10. [245.4904] EMERGING MOOD DISORDER GRANT PROGRAM.
45.21 		Subdivision 1.Creation. (a) The emerging mood disorder grant program is established 
45.22 	in the Department of Human Services to fund:
45.23 	(1) evidence-informed interventions for youth and young adults who are at risk of 
45.24 	developing a mood disorder or are experiencing an emerging mood disorder, including 
45.25 	major depression and bipolar disorders; and
45.26 	(2) a public awareness campaign on the signs and symptoms of mood disorders in youth 
45.27 	and young adults.
45.28 	(b) Emerging mood disorder services are eligible for children's mental health grants as 
45.29 	specified in section 245.4889, subdivision 1, paragraph (b), clause (18).
45.30 		Subd. 2.Activities. (a) All emerging mood disorder grant programs must:
46.1 	(1) provide intensive treatment and support to adolescents and young adults experiencing 
46.2 	or at risk of experiencing an emerging mood disorder. Intensive treatment and support 
46.3 	includes medication management, psychoeducation for the individual and the individual's 
46.4 	family, case management, employment support, education support, cognitive behavioral 
46.5 	approaches, social skills training, peer support, crisis planning, and stress management;
46.6 	(2) conduct outreach and provide training and guidance to mental health and health care 
46.7 	professionals, including postsecondary health clinicians, on early symptoms of mood 
46.8 	disorders, screening tools, and best practices;
46.9 	(3) ensure access for individuals to emerging mood disorder services under this section, 
46.10 	including ensuring access for individuals who live in rural areas; and
46.11 	(4) use all available funding streams.
46.12 	(b) Grant money may also be used to pay for housing or travel expenses for individuals 
46.13 	receiving services or to address other barriers preventing individuals and their families from 
46.14 	participating in emerging mood disorder services.
46.15 	(c) Grant money may be used by the grantee to evaluate the efficacy of providing 
46.16 	intensive services and supports to people with emerging mood disorders.
46.17 		Subd. 3.Eligibility. Program activities must be provided to youth and young adults with 
46.18 	early signs of an emerging mood disorder.
46.19 		Subd. 4.Outcomes. Evaluation of program activities must utilize evidence-based 
46.20 	practices and must include the following outcome evaluation criteria:
46.21 	(1) whether individuals experience a reduction in mood disorder symptoms; and
46.22 	(2) whether individuals experience a decrease in inpatient mental health hospitalizations.

46.23 	Sec. 11. Minnesota Statutes 2020, section 245.713, subdivision 2, is amended to read:
46.24 		Subd. 2.Total funds available; allocation. Funds granted to the state by the federal 
46.25 	government under United States Code, title 42, sections 300X to 300X-9 each federal fiscal 
46.26 	year for mental health services must be allocated as follows:
46.27 	(a) Any amount set aside by the commissioner of human services for American Indian 
46.28 	organizations within the state, which funds shall not duplicate any direct federal funding of 
46.29 	American Indian organizations and which funds shall be at least 25 percent of the total 
46.30 	federal allocation to the state for mental health services; provided that sufficient applications 
46.31 	for funding are received by the commissioner which meet the specifications contained in 
46.32 	requests for proposals. Money from this source may be used for special committees to advise 
47.1 	the commissioner on mental health programs and services for American Indians and other 
47.2 	minorities or underserved groups. For purposes of this subdivision, "American Indian 
47.3 	organization" means an American Indian tribe or band or an organization providing mental 
47.4 	health services that is legally incorporated as a nonprofit organization registered with the 
47.5 	secretary of state and governed by a board of directors having at least a majority of American 
47.6 	Indian directors.
47.7 	(b) An amount not to exceed five percent of the federal block grant allocation for mental 
47.8 	health services to be retained by the commissioner for administration.
47.9 	(c) Any amount permitted under federal law which the commissioner approves for 
47.10 	demonstration or research projects for severely disturbed children and adolescents, the 
47.11 	underserved, special populations or multiply disabled mentally ill persons. The groups to 
47.12 	be served, the extent and nature of services to be provided, the amount and duration of any 
47.13 	grant awards are to be based on criteria set forth in the Alcohol, Drug Abuse and Mental 
47.14 	Health Block Grant Law, United States Code, title 42, sections 300X to 300X-9, and on 
47.15 	state policies and procedures determined necessary by the commissioner. Grant recipients 
47.16 	must comply with applicable state and federal requirements and demonstrate fiscal and 
47.17 	program management capabilities that will result in provision of quality, cost-effective 
47.18 	services.
47.19 	(d) The amount required under federal law, for federally mandated expenditures.
47.20 	(e) An amount not to exceed 15 percent of the federal block grant allocation for mental 
47.21 	health services to be retained by the commissioner for planning and evaluation.

47.22 	EFFECTIVE DATE. This section is effective July 1, 2022.

47.23 	Sec. 12. [245.991] PROJECTS FOR ASSISTANCE IN TRANSITION FROM 
47.24 	HOMELESSNESS PROGRAM.
47.25 		Subdivision 1.Creation. The projects for assistance in transition from homelessness 
47.26 	program is established in the Department of Human Services to prevent or end homelessness 
47.27 	for people with serious mental illness and substance use disorders and ensure the 
47.28 	commissioner may achieve the goals of the housing mission statement in section 245.461, 
47.29 	subdivision 4.
47.30 		Subd. 2.Activities. All projects for assistance in transition from homelessness must 
47.31 	provide homeless outreach and case management services. Projects may provide clinical 
47.32 	assessment, habilitation and rehabilitation services, community mental health services, 
48.1 	substance use disorder treatment, housing transition and sustaining services, direct assistance 
48.2 	funding, and other activities as determined by the commissioner.
48.3 		Subd. 3.Eligibility. Program activities must be provided to people with serious mental 
48.4 	illness or a substance use disorder who meet homeless criteria determined by the 
48.5 	commissioner. People receiving homeless outreach may be presumed eligible until a serious 
48.6 	mental illness or a substance use disorder can be verified.
48.7 		Subd. 4.Outcomes. Evaluation of each project must include the following outcome 
48.8 	evaluation criteria:
48.9 	(1) whether people are contacted through homeless outreach services;
48.10 	(2) whether people are enrolled in case management services;
48.11 	(3) whether people access behavioral health services; and
48.12 	(4) whether people transition from homelessness to housing.
48.13 		Subd. 5.Federal aid or grants. The commissioner of human services must comply with 
48.14 	all conditions and requirements necessary to receive federal aid or grants with respect to 
48.15 	homeless services or programs as specified in section 245.70.

48.16 	Sec. 13. [245.992] HOUSING WITH SUPPORT FOR BEHAVIORAL HEALTH.
48.17 		Subdivision 1.Creation. The housing with support for behavioral health program is 
48.18 	established in the Department of Human Services to prevent or end homelessness for people 
48.19 	with serious mental illness and substance use disorders, increase the availability of housing 
48.20 	with support, and ensure the commissioner may achieve the goals of the housing mission 
48.21 	statement in section 245.461, subdivision 4.
48.22 		Subd. 2.Activities. The housing with support for behavioral health program may provide 
48.23 	a range of activities and supportive services to ensure that people obtain and retain permanent 
48.24 	supportive housing. Program activities may include case management, site-based housing 
48.25 	services, housing transition and sustaining services, outreach services, community support 
48.26 	services, direct assistance funding, and other activities as determined by the commissioner.
48.27 		Subd. 3.Eligibility. Program activities must be provided to people with a serious mental 
48.28 	illness or a substance use disorder who meet homeless criteria determined by the 
48.29 	commissioner.
48.30 		Subd. 4.Outcomes. Evaluation of program activities must utilize evidence-based 
48.31 	practices and must include the following outcome evaluation criteria:
49.1 	(1) whether housing and activities utilize evidence-based practices;
49.2 	(2) whether people transition from homelessness to housing;
49.3 	(3) whether people retain housing; and
49.4 	(4) whether people are satisfied with their current housing.

49.5 	Sec. 14. Minnesota Statutes 2020, section 245F.03, is amended to read:
49.6 	245F.03 APPLICATION.
49.7 	(a) This chapter establishes minimum standards for withdrawal management programs 
49.8 	licensed by the commissioner that serve one or more unrelated persons.
49.9 	(b) This chapter does not apply to a withdrawal management program licensed as a 
49.10 	hospital under sections 144.50 to 144.581. A withdrawal management program located in 
49.11 	a hospital licensed under sections 144.50 to 144.581 that chooses to be licensed under this 
49.12 	chapter is deemed to be in compliance with section 245F.13.
49.13 	(c) Minnesota Rules, parts 9530.6600 to 9530.6655, do not apply to withdrawal 
49.14 	management programs licensed under this chapter.

49.15 	EFFECTIVE DATE. This section is effective July 1, 2022.

49.16 	Sec. 15. Minnesota Statutes 2020, section 245G.05, subdivision 2, is amended to read:
49.17 		Subd. 2.Assessment summary. (a) An alcohol and drug counselor must complete an 
49.18 	assessment summary within three calendar days from the day of service initiation for a 
49.19 	residential program and within three calendar days on which a treatment session has been 
49.20 	provided from the day of service initiation for a client in a nonresidential program. The 
49.21 	comprehensive assessment summary is complete upon a qualified staff member's dated 
49.22 	signature. If the comprehensive assessment is used to authorize the treatment service, the 
49.23 	alcohol and drug counselor must prepare an assessment summary on the same date the 
49.24 	comprehensive assessment is completed. If the comprehensive assessment and assessment 
49.25 	summary are to authorize treatment services, the assessor must determine appropriate level 
49.26 	of care and services for the client using the dimensions in Minnesota Rules, part 9530.6622
49.27 	criteria established in section 254B.04, subdivision 4, and document the recommendations.
49.28 	(b) An assessment summary must include:
49.29 	(1) a risk description according to section 245G.05 for each dimension listed in paragraph 
49.30 	(c);
50.1 	(2) a narrative summary supporting the risk descriptions; and
50.2 	(3) a determination of whether the client has a substance use disorder.
50.3 	(c) An assessment summary must contain information relevant to treatment service 
50.4 	planning and recorded in the dimensions in clauses (1) to (6). The license holder must 
50.5 	consider:
50.6 	(1) Dimension 1, acute intoxication/withdrawal potential; the client's ability to cope with 
50.7 	withdrawal symptoms and current state of intoxication;
50.8 	(2) Dimension 2, biomedical conditions and complications; the degree to which any 
50.9 	physical disorder of the client would interfere with treatment for substance use, and the 
50.10 	client's ability to tolerate any related discomfort. The license holder must determine the 
50.11 	impact of continued substance use on the unborn child, if the client is pregnant;
50.12 	(3) Dimension 3, emotional, behavioral, and cognitive conditions and complications; 
50.13 	the degree to which any condition or complication is likely to interfere with treatment for 
50.14 	substance use or with functioning in significant life areas and the likelihood of harm to self 
50.15 	or others;
50.16 	(4) Dimension 4, readiness for change; the support necessary to keep the client involved 
50.17 	in treatment service;
50.18 	(5) Dimension 5, relapse, continued use, and continued problem potential; the degree 
50.19 	to which the client recognizes relapse issues and has the skills to prevent relapse of either 
50.20 	substance use or mental health problems; and
50.21 	(6) Dimension 6, recovery environment; whether the areas of the client's life are 
50.22 	supportive of or antagonistic to treatment participation and recovery.

50.23 	EFFECTIVE DATE. This section is effective July 1, 2022.

50.24 	Sec. 16. Minnesota Statutes 2020, section 245G.22, subdivision 2, is amended to read:
50.25 		Subd. 2.Definitions. (a) For purposes of this section, the terms defined in this subdivision 
50.26 	have the meanings given them.
50.27 	(b) "Diversion" means the use of a medication for the treatment of opioid addiction being 
50.28 	diverted from intended use of the medication.
50.29 	(c) "Guest dose" means administration of a medication used for the treatment of opioid 
50.30 	addiction to a person who is not a client of the program that is administering or dispensing 
50.31 	the medication.
51.1 	(d) "Medical director" means a practitioner licensed to practice medicine in the 
51.2 	jurisdiction that the opioid treatment program is located who assumes responsibility for 
51.3 	administering all medical services performed by the program, either by performing the 
51.4 	services directly or by delegating specific responsibility to a practitioner of the opioid 
51.5 	treatment program.
51.6 	(e) "Medication used for the treatment of opioid use disorder" means a medication 
51.7 	approved by the Food and Drug Administration for the treatment of opioid use disorder.
51.8 	(f) "Minnesota health care programs" has the meaning given in section 256B.0636.
51.9 	(g) "Opioid treatment program" has the meaning given in Code of Federal Regulations, 
51.10 	title 42, section 8.12, and includes programs licensed under this chapter.
51.11 	(h) "Placing authority" has the meaning given in Minnesota Rules, part 9530.6605, 
51.12 	subpart 21a.
51.13 	(i) (h) "Practitioner" means a staff member holding a current, unrestricted license to 
51.14 	practice medicine issued by the Board of Medical Practice or nursing issued by the Board 
51.15 	of Nursing and is currently registered with the Drug Enforcement Administration to order 
51.16 	or dispense controlled substances in Schedules II to V under the Controlled Substances Act, 
51.17 	United States Code, title 21, part B, section 821. Practitioner includes an advanced practice 
51.18 	registered nurse and physician assistant if the staff member receives a variance by the state 
51.19 	opioid treatment authority under section 254A.03 and the federal Substance Abuse and 
51.20 	Mental Health Services Administration.
51.21 	(j) (i) "Unsupervised use" means the use of a medication for the treatment of opioid use 
51.22 	disorder dispensed for use by a client outside of the program setting.

51.23 	EFFECTIVE DATE. This section is effective July 1, 2022.

51.24 	Sec. 17. Minnesota Statutes 2021 Supplement, section 254A.03, subdivision 3, is amended 
51.25 	to read:
51.26 		Subd. 3.Rules for substance use disorder care. (a) The commissioner of human 
51.27 	services shall establish by rule criteria to be used in determining the appropriate level of 
51.28 	chemical dependency care for each recipient of public assistance seeking treatment for 
51.29 	substance misuse or substance use disorder. Upon federal approval of a comprehensive 
51.30 	assessment as a Medicaid benefit, or on July 1, 2018, whichever is later, and notwithstanding 
51.31 	the criteria in Minnesota Rules, parts 9530.6600 to 9530.6655, An eligible vendor of 
51.32 	comprehensive assessments under section 254B.05 may determine and approve the 
51.33 	appropriate level of substance use disorder treatment for a recipient of public assistance. 
52.1 	The process for determining an individual's financial eligibility for the behavioral health 
52.2 	fund or determining an individual's enrollment in or eligibility for a publicly subsidized 
52.3 	health plan is not affected by the individual's choice to access a comprehensive assessment 
52.4 	for placement.
52.5 	(b) The commissioner shall develop and implement a utilization review process for 
52.6 	publicly funded treatment placements to monitor and review the clinical appropriateness 
52.7 	and timeliness of all publicly funded placements in treatment.
52.8 	(c) If a screen result is positive for alcohol or substance misuse, a brief screening for 
52.9 	alcohol or substance use disorder that is provided to a recipient of public assistance within 
52.10 	a primary care clinic, hospital, or other medical setting or school setting establishes medical 
52.11 	necessity and approval for an initial set of substance use disorder services identified in 
52.12 	section 254B.05, subdivision 5. The initial set of services approved for a recipient whose 
52.13 	screen result is positive may include any combination of up to four hours of individual or 
52.14 	group substance use disorder treatment, two hours of substance use disorder treatment 
52.15 	coordination, or two hours of substance use disorder peer support services provided by a 
52.16 	qualified individual according to chapter 245G. A recipient must obtain an assessment 
52.17 	pursuant to paragraph (a) to be approved for additional treatment services. Minnesota Rules, 
52.18 	parts 9530.6600 to 9530.6655, and A comprehensive assessment pursuant to section 245G.05 
52.19 	are not applicable is not required to receive the initial set of services allowed under this 
52.20 	subdivision. A positive screen result establishes eligibility for the initial set of services 
52.21 	allowed under this subdivision.
52.22 	(d) Notwithstanding Minnesota Rules, parts 9530.6600 to 9530.6655, An individual 
52.23 	may choose to obtain a comprehensive assessment as provided in section 245G.05. 
52.24 	Individuals obtaining a comprehensive assessment may access any enrolled provider that 
52.25 	is licensed to provide the level of service authorized pursuant to section 254A.19, subdivision 
52.26 	3, paragraph (d). If the individual is enrolled in a prepaid health plan, the individual must 
52.27 	comply with any provider network requirements or limitations. This paragraph expires July 
52.28 	1, 2022.

52.29 	EFFECTIVE DATE. This section is effective July 1, 2022.

52.30 	Sec. 18. Minnesota Statutes 2020, section 254A.19, subdivision 1, is amended to read:
52.31 		Subdivision 1.Persons arrested outside of home county. When a chemical use 
52.32 	assessment is required under Minnesota Rules, parts 9530.6600 to 9530.6655, for a person 
52.33 	who is arrested and taken into custody by a peace officer outside of the person's county of 
52.34 	residence, the assessment must be completed by the person's county of residence no later 
53.1 	than three weeks after the assessment is initially requested. If the assessment is not performed 
53.2 	within this time limit, the county where the person is to be sentenced shall perform the 
53.3 	assessment county where the person is detained must provide access to an assessor qualified 
53.4 	under subdivision 3. The county of financial responsibility is determined under chapter 
53.5 	256G.

53.6 	EFFECTIVE DATE. This section is effective July 1, 2022.

53.7 	Sec. 19. Minnesota Statutes 2020, section 254A.19, subdivision 3, is amended to read:
53.8 		Subd. 3.Financial conflicts of interest Comprehensive assessments. (a) Except as 
53.9 	provided in paragraph (b), (c), or (d), an assessor conducting a chemical use assessment 
53.10 	under Minnesota Rules, parts 9530.6600 to 9530.6655, may not have any direct or shared 
53.11 	financial interest or referral relationship resulting in shared financial gain with a treatment 
53.12 	provider.
53.13 	(b) A county may contract with an assessor having a conflict described in paragraph (a) 
53.14 	if the county documents that:
53.15 	(1) the assessor is employed by a culturally specific service provider or a service provider 
53.16 	with a program designed to treat individuals of a specific age, sex, or sexual preference;
53.17 	(2) the county does not employ a sufficient number of qualified assessors and the only 
53.18 	qualified assessors available in the county have a direct or shared financial interest or a 
53.19 	referral relationship resulting in shared financial gain with a treatment provider; or
53.20 	(3) the county social service agency has an existing relationship with an assessor or 
53.21 	service provider and elects to enter into a contract with that assessor to provide both 
53.22 	assessment and treatment under circumstances specified in the county's contract, provided 
53.23 	the county retains responsibility for making placement decisions.
53.24 	(c) The county may contract with a hospital to conduct chemical assessments if the 
53.25 	requirements in subdivision 1a are met.
53.26 	An assessor under this paragraph may not place clients in treatment. The assessor shall 
53.27 	gather required information and provide it to the county along with any required 
53.28 	documentation. The county shall make all placement decisions for clients assessed by 
53.29 	assessors under this paragraph.
53.30 	(d) An eligible vendor under section 254B.05 conducting a comprehensive assessment 
53.31 	for an individual seeking treatment shall approve the nature, intensity level, and duration 
53.32 	of treatment service if a need for services is indicated, but the individual assessed can access 
54.1 	any enrolled provider that is licensed to provide the level of service authorized, including 
54.2 	the provider or program that completed the assessment. If an individual is enrolled in a 
54.3 	prepaid health plan, the individual must comply with any provider network requirements 
54.4 	or limitations.

54.5 	EFFECTIVE DATE. This section is effective July 1, 2022.

54.6 	Sec. 20. Minnesota Statutes 2021 Supplement, section 254A.19, subdivision 4, is amended 
54.7 	to read:
54.8 		Subd. 4.Civil commitments. A Rule 25 assessment, under Minnesota Rules, part 
54.9 	9530.6615, For the purposes of determining level of care, a comprehensive assessment does 
54.10 	not need to be completed for an individual being committed as a chemically dependent 
54.11 	person, as defined in section 253B.02, and for the duration of a civil commitment under 
54.12 	section 253B.065,253B.09, or 253B.095 in order for a county to access the behavioral 
54.13 	health fund under section 254B.04. The county must determine if the individual meets the 
54.14 	financial eligibility requirements for the behavioral health fund under section 254B.04. 
54.15 	Nothing in this subdivision prohibits placement in a treatment facility or treatment program 
54.16 	governed under this chapter or Minnesota Rules, parts 9530.6600 to 9530.6655.

54.17 	EFFECTIVE DATE. This section is effective July 1, 2022.

54.18 	Sec. 21. Minnesota Statutes 2020, section 254A.19, is amended by adding a subdivision 
54.19 	to read:
54.20 		Subd. 6.Assessments for detoxification programs. For detoxification programs licensed 
54.21 	under chapter 245A according to Minnesota Rules, parts 9530.6510 to 9530.6590, a 
54.22 	"chemical use assessment" means a comprehensive assessment and assessment summary 
54.23 	completed according to section 245G.05 and a "chemical dependency assessor" or "assessor" 
54.24 	means an individual who meets the qualifications of section 245G.11, subdivisions 1 and 
54.25 	5.

54.26 	EFFECTIVE DATE. This section is effective July 1, 2022.

54.27 	Sec. 22. Minnesota Statutes 2020, section 254A.19, is amended by adding a subdivision 
54.28 	to read:
54.29 		Subd. 7.Assessments for children's residential facilities. For children's residential 
54.30 	facilities licensed under chapter 245A according to Minnesota Rules, parts 2960.0010 to 
54.31 	2960.0220 and 2960.0430 to 2960.0500, a "chemical use assessment" means a comprehensive 
55.1 	assessment and assessment summary completed according to section 245G.05 by an 
55.2 	individual who meets the qualifications of section 245G.11, subdivisions 1 and 5.

55.3 	EFFECTIVE DATE. This section is effective July 1, 2022.

55.4 	Sec. 23. Minnesota Statutes 2020, section 254B.01, is amended by adding a subdivision 
55.5 	to read:
55.6 		Subd. 2a.Behavioral health fund. "Behavioral health fund" means money allocated 
55.7 	for payment of treatment services under this chapter.

55.8 	EFFECTIVE DATE. This section is effective July 1, 2022.

55.9 	Sec. 24. Minnesota Statutes 2020, section 254B.01, is amended by adding a subdivision 
55.10 	to read:
55.11 		Subd. 2b.Client. "Client" means an individual who has requested substance use disorder 
55.12 	services, or for whom substance use disorder services have been requested.

55.13 	EFFECTIVE DATE. This section is effective July 1, 2022.

55.14 	Sec. 25. Minnesota Statutes 2020, section 254B.01, is amended by adding a subdivision 
55.15 	to read:
55.16 		Subd. 2c.Co-payment. "Co-payment" means the amount an insured person is obligated 
55.17 	to pay before the person's third-party payment source is obligated to make a payment, or 
55.18 	the amount an insured person is obligated to pay in addition to the amount the person's 
55.19 	third-party payment source is obligated to pay.

55.20 	EFFECTIVE DATE. This section is effective July 1, 2022.

55.21 	Sec. 26. Minnesota Statutes 2020, section 254B.01, is amended by adding a subdivision 
55.22 	to read:
55.23 		Subd. 4c.Department. "Department" means the Department of Human Services.

55.24 	EFFECTIVE DATE. This section is effective July 1, 2022.

55.25 	Sec. 27. Minnesota Statutes 2020, section 254B.01, is amended by adding a subdivision 
55.26 	to read:
55.27 		Subd. 4d.Drug and alcohol abuse normative evaluation system or DAANES. "Drug 
55.28 	and alcohol abuse normative evaluation system" or "DAANES" means the reporting system 
55.29 	used to collect substance use disorder treatment data across all levels of care and providers.

56.1 	EFFECTIVE DATE. This section is effective July 1, 2022.

56.2 	Sec. 28. Minnesota Statutes 2020, section 254B.01, subdivision 5, is amended to read:
56.3 		Subd. 5.Local agency. "Local agency" means the agency designated by a board of 
56.4 	county commissioners, a local social services agency, or a human services board to make 
56.5 	placements and submit state invoices according to Laws 1986, chapter 394, sections 8 to 
56.6 	20 authorized under section 254B.03, subdivision 1, to determine financial eligibility for 
56.7 	the behavioral health fund.

56.8 	Sec. 29. Minnesota Statutes 2020, section 254B.01, is amended by adding a subdivision 
56.9 	to read:
56.10 		Subd. 6a.Minor child. "Minor child" means an individual under the age of 18 years.

56.11 	EFFECTIVE DATE. This section is effective July 1, 2022.

56.12 	Sec. 30. Minnesota Statutes 2020, section 254B.01, is amended by adding a subdivision 
56.13 	to read:
56.14 		Subd. 6b.Policy holder. "Policy holder" means a person who has a third-party payment 
56.15 	policy under which a third-party payment source has an obligation to pay all or part of a 
56.16 	client's treatment costs.

56.17 	EFFECTIVE DATE. This section is effective July 1, 2022.

56.18 	Sec. 31. Minnesota Statutes 2020, section 254B.01, is amended by adding a subdivision 
56.19 	to read:
56.20 		Subd. 9.Responsible relative. "Responsible relative" means a person who is a member 
56.21 	of the client's household and is a client's spouse or the parent of a minor child who is a 
56.22 	client.

56.23 	EFFECTIVE DATE. This section is effective July 1, 2022.

56.24 	Sec. 32. Minnesota Statutes 2020, section 254B.01, is amended by adding a subdivision 
56.25 	to read:
56.26 		Subd. 10.Third-party payment source. "Third-party payment source" means a person, 
56.27 	entity, or public or private agency other than medical assistance or general assistance medical 
56.28 	care that has a probable obligation to pay all or part of the costs of a client's substance use 
56.29 	disorder treatment.

57.1 	EFFECTIVE DATE. This section is effective July 1, 2022.

57.2 	Sec. 33. Minnesota Statutes 2020, section 254B.01, is amended by adding a subdivision 
57.3 	to read:
57.4 		Subd. 11.Vendor. "Vendor" means a provider of substance use disorder treatment 
57.5 	services that meets the criteria established in section 254B.05 and that has applied to 
57.6 	participate as a provider in the medical assistance program according to Minnesota Rules, 
57.7 	part 9505.0195.

57.8 	EFFECTIVE DATE. This section is effective July 1, 2022.

57.9 	Sec. 34. Minnesota Statutes 2020, section 254B.01, is amended by adding a subdivision 
57.10 	to read:
57.11 		Subd. 12.American Society of Addiction Medicine criteria or ASAM 
57.12 	criteria. "American Society of Addiction Medicine criteria" or "ASAM criteria" means the 
57.13 	clinical guidelines for purposes of the assessment, treatment, placement, and transfer or 
57.14 	discharge of individuals with substance use disorders. The ASAM criteria are contained in 
57.15 	the current edition of the ASAM Criteria: Treatment Criteria for Addictive, 
57.16 	Substance-Related, and Co-Occurring Conditions.

57.17 	EFFECTIVE DATE. This section is effective July 1, 2022.

57.18 	Sec. 35. Minnesota Statutes 2020, section 254B.01, is amended by adding a subdivision 
57.19 	to read:
57.20 		Subd. 13.Skilled treatment services. "Skilled treatment services" means the "treatment 
57.21 	services" described by section 245G.07, subdivisions 1, paragraph (a), clauses (1) to (4); 
57.22 	and 2, clauses (1) to (6). Skilled treatment services must be provided by qualified 
57.23 	professionals as identified in section 245G.07, subdivision 3.

57.24 	EFFECTIVE DATE. This section is effective July 1, 2022.

57.25 	Sec. 36. Minnesota Statutes 2020, section 254B.03, subdivision 1, is amended to read:
57.26 		Subdivision 1.Local agency duties. (a) Every local agency shall must determine financial 
57.27 	eligibility for substance use disorder services and provide chemical dependency substance 
57.28 	use disorder services to persons residing within its jurisdiction who meet criteria established 
57.29 	by the commissioner for placement in a chemical dependency residential or nonresidential 
58.1 	treatment service. Chemical dependency money must be administered by the local agencies 
58.2 	according to law and rules adopted by the commissioner under sections 14.001 to 14.69.
58.3 	(b) In order to contain costs, the commissioner of human services shall select eligible 
58.4 	vendors of chemical dependency services who can provide economical and appropriate 
58.5 	treatment. Unless the local agency is a social services department directly administered by 
58.6 	a county or human services board, the local agency shall not be an eligible vendor under 
58.7 	section 254B.05. The commissioner may approve proposals from county boards to provide 
58.8 	services in an economical manner or to control utilization, with safeguards to ensure that 
58.9 	necessary services are provided. If a county implements a demonstration or experimental 
58.10 	medical services funding plan, the commissioner shall transfer the money as appropriate.
58.11 	(c) A culturally specific vendor that provides assessments under a variance under 
58.12 	Minnesota Rules, part 9530.6610, shall be allowed to provide assessment services to persons 
58.13 	not covered by the variance.
58.14 	(d) Notwithstanding Minnesota Rules, parts 9530.6600 to 9530.6655,(c) An individual 
58.15 	may choose to obtain a comprehensive assessment as provided in section 245G.05. 
58.16 	Individuals obtaining a comprehensive assessment may access any enrolled provider that 
58.17 	is licensed to provide the level of service authorized pursuant to section 254A.19, subdivision 
58.18 	3, paragraph (d). If the individual is enrolled in a prepaid health plan, the individual must 
58.19 	comply with any provider network requirements or limitations.
58.20 	(e) (d) Beginning July 1, 2022, local agencies shall not make placement location 
58.21 	determinations.

58.22 	EFFECTIVE DATE. This section is effective July 1, 2022.

58.23 	Sec. 37. Minnesota Statutes 2021 Supplement, section 254B.03, subdivision 2, is amended 
58.24 	to read:
58.25 		Subd. 2.Behavioral health fund payment. (a) Payment from the behavioral health 
58.26 	fund is limited to payments for services identified in section 254B.05, other than 
58.27 	detoxification licensed under Minnesota Rules, parts 9530.6510 to 9530.6590, and 
58.28 	detoxification provided in another state that would be required to be licensed as a chemical 
58.29 	dependency program if the program were in the state. Out of state vendors must also provide 
58.30 	the commissioner with assurances that the program complies substantially with state licensing 
58.31 	requirements and possesses all licenses and certifications required by the host state to provide 
58.32 	chemical dependency treatment. Vendors receiving payments from the behavioral health 
58.33 	fund must not require co-payment from a recipient of benefits for services provided under 
59.1 	this subdivision. The vendor is prohibited from using the client's public benefits to offset 
59.2 	the cost of services paid under this section. The vendor shall not require the client to use 
59.3 	public benefits for room or board costs. This includes but is not limited to cash assistance 
59.4 	benefits under chapters 119B, 256D, and 256J, or SNAP benefits. Retention of SNAP 
59.5 	benefits is a right of a client receiving services through the behavioral health fund or through 
59.6 	state contracted managed care entities. Payment from the behavioral health fund shall be 
59.7 	made for necessary room and board costs provided by vendors meeting the criteria under 
59.8 	section 254B.05, subdivision 1a, or in a community hospital licensed by the commissioner 
59.9 	of health according to sections 144.50 to 144.56 to a client who is:
59.10 	(1) determined to meet the criteria for placement in a residential chemical dependency 
59.11 	treatment program according to rules adopted under section 254A.03, subdivision 3; and
59.12 	(2) concurrently receiving a chemical dependency treatment service in a program licensed 
59.13 	by the commissioner and reimbursed by the behavioral health fund.
59.14 	(b) A county may, from its own resources, provide chemical dependency services for 
59.15 	which state payments are not made. A county may elect to use the same invoice procedures 
59.16 	and obtain the same state payment services as are used for chemical dependency services 
59.17 	for which state payments are made under this section if county payments are made to the 
59.18 	state in advance of state payments to vendors. When a county uses the state system for 
59.19 	payment, the commissioner shall make monthly billings to the county using the most recent 
59.20 	available information to determine the anticipated services for which payments will be made 
59.21 	in the coming month. Adjustment of any overestimate or underestimate based on actual 
59.22 	expenditures shall be made by the state agency by adjusting the estimate for any succeeding 
59.23 	month.
59.24 	(c) (b) The commissioner shall coordinate chemical dependency services and determine 
59.25 	whether there is a need for any proposed expansion of chemical dependency treatment 
59.26 	services. The commissioner shall deny vendor certification to any provider that has not 
59.27 	received prior approval from the commissioner for the creation of new programs or the 
59.28 	expansion of existing program capacity. The commissioner shall consider the provider's 
59.29 	capacity to obtain clients from outside the state based on plans, agreements, and previous 
59.30 	utilization history, when determining the need for new treatment services.
59.31 	(d) (c) At least 60 days prior to submitting an application for new licensure under chapter 
59.32 	245G, the applicant must notify the county human services director in writing of the 
59.33 	applicant's intent to open a new treatment program. The written notification must include, 
59.34 	at a minimum:
60.1 	(1) a description of the proposed treatment program; and
60.2 	(2) a description of the target population to be served by the treatment program.
60.3 	(e) (d) The county human services director may submit a written statement to the 
60.4 	commissioner, within 60 days of receiving notice from the applicant, regarding the county's 
60.5 	support of or opposition to the opening of the new treatment program. The written statement 
60.6 	must include documentation of the rationale for the county's determination. The commissioner 
60.7 	shall consider the county's written statement when determining whether there is a need for 
60.8 	the treatment program as required by paragraph (c) (b).

60.9 	EFFECTIVE DATE. This section is effective July 1, 2022.

60.10 	Sec. 38. Minnesota Statutes 2020, section 254B.03, subdivision 5, is amended to read:
60.11 		Subd. 5.Rules; appeal. The commissioner shall adopt rules as necessary to implement 
60.12 	this chapter. The commissioner shall establish an appeals process for use by recipients when 
60.13 	services certified by the county are disputed. The commissioner shall adopt rules and 
60.14 	standards for the appeal process to assure adequate redress for persons referred to 
60.15 	inappropriate services.

60.16 	EFFECTIVE DATE. This section is effective July 1, 2022.

60.17 	Sec. 39. Minnesota Statutes 2021 Supplement, section 254B.04, subdivision 1, is amended 
60.18 	to read:
60.19 		Subdivision 1.Client eligibility. (a) Persons eligible for benefits under Code of Federal 
60.20 	Regulations, title 25, part 20, who meet the income standards of section 256B.056, 
60.21 	subdivision 4, and are not enrolled in medical assistance, are entitled to behavioral health 
60.22 	fund services. State money appropriated for this paragraph must be placed in a separate 
60.23 	account established for this purpose.
60.24 	(b) Persons with dependent children who are determined to be in need of chemical 
60.25 	dependency treatment pursuant to an assessment under section 260E.20, subdivision 1, or 
60.26 	a case plan under section 260C.201, subdivision 6, or 260C.212, shall be assisted by the 
60.27 	local agency to access needed treatment services. Treatment services must be appropriate 
60.28 	for the individual or family, which may include long-term care treatment or treatment in a 
60.29 	facility that allows the dependent children to stay in the treatment facility. The county shall 
60.30 	pay for out-of-home placement costs, if applicable.
61.1 	(c) Notwithstanding paragraph (a), persons enrolled in medical assistance are eligible 
61.2 	for room and board services under section 254B.05, subdivision 5, paragraph (b), clause 
61.3 	(12).
61.4 	(d) A client is eligible to have substance use disorder treatment paid for with funds from 
61.5 	the behavioral health fund if:
61.6 	(1) the client is eligible for MFIP as determined under chapter 256J;
61.7 	(2) the client is eligible for medical assistance as determined under Minnesota Rules, 
61.8 	parts 9505.0010 to 9505.0150;
61.9 	(3) the client is eligible for general assistance, general assistance medical care, or work 
61.10 	readiness as determined under Minnesota Rules, parts 9500.1200 to 9500.1272; or
61.11 	(4) the client's income is within current household size and income guidelines for entitled 
61.12 	persons, as defined in this subdivision and subdivision 7.
61.13 	(e) Clients who meet the financial eligibility requirement in paragraph (a) and who have 
61.14 	a third-party payment source are eligible for the behavioral health fund if the third-party 
61.15 	payment source pays less than 100 percent of the cost of treatment services for eligible 
61.16 	clients.
61.17 	(f) A client is ineligible to have substance use disorder treatment services paid for by 
61.18 	the behavioral health fund if the client:
61.19 	(1) has an income that exceeds current household size and income guidelines for entitled 
61.20 	persons, as defined in this subdivision and subdivision 7; or
61.21 	(2) has an available third-party payment source that will pay the total cost of the client's 
61.22 	treatment.
61.23 	(g) A client who is disenrolled from a state prepaid health plan during a treatment episode 
61.24 	is eligible for continued treatment service paid for by the behavioral health fund until the 
61.25 	treatment episode is completed or the client is re-enrolled in a state prepaid health plan if 
61.26 	the client:
61.27 	(1) continues to be enrolled in MinnesotaCare, medical assistance, or general assistance 
61.28 	medical care; or
61.29 	(2) is eligible according to paragraphs (a) and (b) and is determined eligible by a local 
61.30 	agency under this section.
61.31 	(h) If a county commits a client under chapter 253B to a regional treatment center for 
61.32 	substance use disorder services and the client is ineligible for the behavioral health fund, 
62.1 	the county is responsible for payment to the regional treatment center according to section 
62.2 	254B.05, subdivision 4.

62.3 	EFFECTIVE DATE. This section is effective July 1, 2022.

62.4 	Sec. 40. Minnesota Statutes 2020, section 254B.04, subdivision 2a, is amended to read:
62.5 		Subd. 2a.Eligibility for treatment in residential settings room and board services 
62.6 	for persons in outpatient substance use disorder treatment. Notwithstanding provisions 
62.7 	of Minnesota Rules, part 9530.6622, subparts 5 and 6, related to an assessor's discretion in 
62.8 	making placements to residential treatment settings, A person eligible for room and board
62.9 	services under this section 254B.05, subdivision 5, paragraph (b), clause (12), must score 
62.10 	at level 4 on assessment dimensions related to readiness to change, relapse, continued use, 
62.11 	or recovery environment in order to be assigned to services with a room and board component 
62.12 	reimbursed under this section. Whether a treatment facility has been designated an institution 
62.13 	for mental diseases under United States Code, title 42, section 1396d, shall not be a factor 
62.14 	in making placements.

62.15 	EFFECTIVE DATE. This section is effective July 1, 2022.

62.16 	Sec. 41. Minnesota Statutes 2020, section 254B.04, is amended by adding a subdivision 
62.17 	to read:
62.18 		Subd. 4.Assessment criteria and risk descriptions. (a) The level of care determination 
62.19 	must follow criteria approved by the commissioner.
62.20 	(b) Dimension 1: the vendor must use the criteria in Dimension 1 to determine a client's 
62.21 	acute intoxication and withdrawal potential.
62.22 	(1) "0" The client displays full functioning with good ability to tolerate and cope with 
62.23 	withdrawal discomfort. The client displays no signs or symptoms of intoxication or 
62.24 	withdrawal or diminishing signs or symptoms.
62.25 	(2) "1" The client can tolerate and cope with withdrawal discomfort. The client displays 
62.26 	mild to moderate intoxication or signs and symptoms interfering with daily functioning but 
62.27 	does not immediately endanger self or others. The client poses minimal risk of severe 
62.28 	withdrawal.
62.29 	(3) "2" The client has some difficulty tolerating and coping with withdrawal discomfort. 
62.30 	The client's intoxication may be severe, but the client responds to support and treatment 
62.31 	such that the client does not immediately endanger self or others. The client displays moderate 
62.32 	signs and symptoms with moderate risk of severe withdrawal.
63.1 	(4) "3" The client tolerates and copes with withdrawal discomfort poorly. The client has 
63.2 	severe intoxication, such that the client endangers self or others, or has intoxication that has 
63.3 	not abated with less intensive services. The client displays severe signs and symptoms, risk 
63.4 	of severe but manageable withdrawal, or worsening withdrawal despite detoxification at a 
63.5 	less intensive level.
63.6 	(5) "4" The client is incapacitated with severe signs and symptoms. The client displays 
63.7 	severe withdrawal and is a danger to self or others.
63.8 	(c) Dimension 2: the vendor must use the criteria in Dimension 2 to determine a client's 
63.9 	biomedical conditions and complications.
63.10 	(1) "0" The client displays full functioning with good ability to cope with physical 
63.11 	discomfort.
63.12 	(2) "1" The client tolerates and copes with physical discomfort and is able to get the 
63.13 	services that the client needs.
63.14 	(3) "2" The client has difficulty tolerating and coping with physical problems or has 
63.15 	other biomedical problems that interfere with recovery and treatment. The client neglects 
63.16 	or does not seek care for serious biomedical problems.
63.17 	(4) "3" The client tolerates and copes poorly with physical problems or has poor general 
63.18 	health. The client neglects the client's medical problems without active assistance.
63.19 	(5) "4" The client is unable to participate in substance use disorder treatment and has 
63.20 	severe medical problems, has a condition that requires immediate intervention, or is 
63.21 	incapacitated.
63.22 	(d) Dimension 3: the vendor must use the criteria in Dimension 3 to determine a client's 
63.23 	emotional, behavioral, and cognitive conditions and complications.
63.24 	(1) "0" The client has good impulse control and coping skills and presents no risk of 
63.25 	harm to self or others. The client functions in all life areas and displays no emotional, 
63.26 	behavioral, or cognitive problems or the problems are stable.
63.27 	(2) "1" The client has impulse control and coping skills. The client presents a mild to 
63.28 	moderate risk of harm to self or others or displays symptoms of emotional, behavioral, or 
63.29 	cognitive problems. The client has a mental health diagnosis and is stable. The client 
63.30 	functions adequately in significant life areas.
63.31 	(3) "2" The client has difficulty with impulse control and lacks coping skills. The client 
63.32 	has thoughts of suicide or harm to others without means; however, the thoughts may interfere 
64.1 	with participation in some activities. The client has difficulty functioning in significant life 
64.2 	areas. The client has moderate symptoms of emotional, behavioral, or cognitive problems. 
64.3 	The client is able to participate in most treatment activities.
64.4 	(4) "3" The client has a severe lack of impulse control and coping skills. The client also 
64.5 	has frequent thoughts of suicide or harm to others, including a plan and the means to carry 
64.6 	out the plan. In addition, the client is severely impaired in significant life areas and has 
64.7 	severe symptoms of emotional, behavioral, or cognitive problems that interfere with the 
64.8 	client's participation in treatment activities.
64.9 	(5) "4" The client has severe emotional or behavioral symptoms that place the client or 
64.10 	others at acute risk of harm. The client also has intrusive thoughts of harming self or others. 
64.11 	The client is unable to participate in treatment activities.
64.12 	(e) Dimension 4: the vendor must use the criteria in Dimension 4 to determine a client's 
64.13 	readiness for change.
64.14 	(1) "0" The client admits to problems and is cooperative, motivated, ready to change, 
64.15 	committed to change, and engaged in treatment as a responsible participant.
64.16 	(2) "1" The client is motivated with active reinforcement to explore treatment and 
64.17 	strategies for change but ambivalent about the client's illness or need for change.
64.18 	(3) "2" The client displays verbal compliance but lacks consistent behaviors, has low 
64.19 	motivation for change, and is passively involved in treatment.
64.20 	(4) "3" The client displays inconsistent compliance, has minimal awareness of either 
64.21 	the client's addiction or mental disorder, and is minimally cooperative.
64.22 	(5) "4" The client is:
64.23 	(i) noncompliant with treatment and has no awareness of addiction or mental disorder 
64.24 	and does not want or is unwilling to explore change or is in total denial of the client's illness 
64.25 	and its implications; or
64.26 	(ii) dangerously oppositional to the extent that the client is a threat of imminent harm 
64.27 	to self and others.
64.28 	(f) Dimension 5: the vendor must use the criteria in Dimension 5 to determine a client's 
64.29 	relapse, continued substance use, and continued problem potential.
64.30 	(1) "0" The client recognizes risk well and is able to manage potential problems.
64.31 	(2) "1" The client recognizes relapse issues and prevention strategies, but displays some 
64.32 	vulnerability for further substance use or mental health problems.
65.1 	(3) "2" The client has minimal recognition and understanding of relapse and recidivism 
65.2 	issues and displays moderate vulnerability for further substance use or mental health 
65.3 	problems. The client has some coping skills inconsistently applied.
65.4 	(4) "3" The client has poor recognition and understanding of relapse and recidivism 
65.5 	issues and displays moderately high vulnerability for further substance use or mental health 
65.6 	problems. The client has few coping skills and rarely applies coping skills.
65.7 	(5) "4" The client has no coping skills to arrest mental health or addiction illnesses or 
65.8 	to prevent relapse. The client has no recognition or understanding of relapse and recidivism 
65.9 	issues and displays high vulnerability for further substance use or mental health problems.
65.10 	(g) Dimension 6: the vendor must use the criteria in Dimension 6 to determine a client's 
65.11 	recovery environment.
65.12 	(1) "0" The client is engaged in structured, meaningful activity and has a supportive 
65.13 	significant other, family, and living environment.
65.14 	(2) "1" The client has passive social network support or the client's family and significant 
65.15 	other are not interested in the client's recovery. The client is engaged in structured, meaningful 
65.16 	activity.
65.17 	(3) "2" The client is engaged in structured, meaningful activity, but the client's peers, 
65.18 	family, significant other, and living environment are unsupportive, or there is criminal 
65.19 	justice system involvement by the client or among the client's peers or significant other or 
65.20 	in the client's living environment.
65.21 	(4) "3" The client is not engaged in structured, meaningful activity and the client's peers, 
65.22 	family, significant other, and living environment are unsupportive, or there is significant 
65.23 	criminal justice system involvement.
65.24 	(5) "4" The client has:
65.25 	(i) a chronically antagonistic significant other, living environment, family, or peer group 
65.26 	or long-term criminal justice system involvement that is harmful to the client's recovery or 
65.27 	treatment progress; or
65.28 	(ii) an actively antagonistic significant other, family, work, or living environment, with 
65.29 	an immediate threat to the client's safety and well-being.

65.30 	EFFECTIVE DATE. This section is effective July 1, 2022.

66.1 	Sec. 42. Minnesota Statutes 2020, section 254B.04, is amended by adding a subdivision 
66.2 	to read:
66.3 		Subd. 5.Scope and applicability. This section governs administration of the behavioral 
66.4 	health fund, establishes the criteria to be applied by local agencies to determine a client's 
66.5 	financial eligibility under the behavioral health fund, and determines a client's obligation 
66.6 	to pay for substance use disorder treatment services.

66.7 	EFFECTIVE DATE. This section is effective July 1, 2022.

66.8 	Sec. 43. Minnesota Statutes 2020, section 254B.04, is amended by adding a subdivision 
66.9 	to read:
66.10 		Subd. 6.Local agency responsibility to provide services. The local agency may employ 
66.11 	individuals to conduct administrative activities and facilitate access to substance use disorder 
66.12 	treatment services.

66.13 	EFFECTIVE DATE. This section is effective July 1, 2022.

66.14 	Sec. 44. Minnesota Statutes 2020, section 254B.04, is amended by adding a subdivision 
66.15 	to read:
66.16 		Subd. 7.Local agency to determine client financial eligibility. (a) The local agency 
66.17 	shall determine a client's financial eligibility for the behavioral health fund according to 
66.18 	subdivision 1 with the income calculated prospectively for one year from the date of 
66.19 	comprehensive assessment. The local agency shall pay for eligible clients according to 
66.20 	chapter 256G. The local agency shall enter the financial eligibility span within ten calendar 
66.21 	days of request. Client eligibility must be determined using forms prescribed by the 
66.22 	commissioner. The local agency must determine a client's eligibility as follows:
66.23 	(1) The local agency must determine the client's income. A client who is a minor child 
66.24 	must not be deemed to have income available to pay for substance use disorder treatment, 
66.25 	unless the minor child is responsible for payment under section 144.347 for substance use 
66.26 	disorder treatment services sought under section 144.343, subdivision 1.
66.27 	(2) The local agency must determine the client's household size according to the 
66.28 	following:
66.29 	(i) If the client is a minor child, the household size includes the following persons living 
66.30 	in the same dwelling unit:
66.31 	(A) the client;
67.1 	(B) the client's birth or adoptive parents; and
67.2 	(C) the client's siblings who are minors.
67.3 	(ii) If the client is an adult, the household size includes the following persons living in 
67.4 	the same dwelling unit:
67.5 	(A) the client;
67.6 	(B) the client's spouse;
67.7 	(C) the client's minor children; and
67.8 	(D) the client's spouse's minor children.
67.9 	(iii) Household size includes a person listed in items (i) and (ii) who is in out-of-home 
67.10 	placement if a person listed in item (i) or (ii) is contributing to the cost of care of the person 
67.11 	in out-of-home placement.
67.12 	(3) The local agency must determine the client's current prepaid health plan enrollment 
67.13 	and the availability of a third-party payment source, including the availability of total or 
67.14 	partial payment and the amount of co-payment.
67.15 	(4) The local agency must provide the required eligibility information to the commissioner 
67.16 	in the manner specified by the commissioner.
67.17 	(5) The local agency must require the client and policyholder to conditionally assign to 
67.18 	the department the client's and policyholder's rights and the rights of minor children to 
67.19 	benefits or services provided to the client if the commissioner is required to collect from a 
67.20 	third-party payment source.
67.21 	(b) The local agency must redetermine a client's eligibility for the behavioral health fund 
67.22 	every 12 months.
67.23 	(c) A client, responsible relative, and policyholder must provide income or wage 
67.24 	verification and household size verification under paragraph (a), clause (3), and must make 
67.25 	an assignment of third-party payment rights under paragraph (a), clause (5). If a client, 
67.26 	responsible relative, or policyholder does not comply with this subdivision, the client is 
67.27 	ineligible for behavioral health fund payment for substance use disorder treatment, and the 
67.28 	client and responsible relative are obligated to pay the full cost of substance use disorder 
67.29 	treatment services provided to the client.

67.30 	EFFECTIVE DATE. This section is effective July 1, 2022.

68.1 	Sec. 45. Minnesota Statutes 2020, section 254B.04, is amended by adding a subdivision 
68.2 	to read:
68.3 		Subd. 8.Client fees. A client whose household income is within current household size 
68.4 	and income guidelines for entitled persons as defined in subdivision 1 must pay no fee.

68.5 	EFFECTIVE DATE. This section is effective July 1, 2022.

68.6 	Sec. 46. Minnesota Statutes 2020, section 254B.04, is amended by adding a subdivision 
68.7 	to read:
68.8 		Subd. 9.Vendor must participate in DAANES. To be eligible for payment under the 
68.9 	behavioral health fund, a vendor must participate in DAANES or submit to the commissioner 
68.10 	the information required in DAANES in the format specified by the commissioner.

68.11 	EFFECTIVE DATE. This section is effective July 1, 2022.

68.12 	Sec. 47. Minnesota Statutes 2021 Supplement, section 254B.05, subdivision 4, is amended 
68.13 	to read:
68.14 		Subd. 4.Regional treatment centers. Regional treatment center chemical dependency 
68.15 	treatment units are eligible vendors. The commissioner may expand the capacity of chemical 
68.16 	dependency treatment units beyond the capacity funded by direct legislative appropriation 
68.17 	to serve individuals who are referred for treatment by counties and whose treatment will be 
68.18 	paid for by funding under this chapter or other funding sources. Notwithstanding the 
68.19 	provisions of sections 254B.03 to 254B.041 254B.04, payment for any person committed 
68.20 	at county request to a regional treatment center under chapter 253B for chemical dependency 
68.21 	treatment and determined to be ineligible under the behavioral health fund, shall become 
68.22 	the responsibility of the county.

68.23 	Sec. 48. Minnesota Statutes 2021 Supplement, section 254B.05, subdivision 5, is amended 
68.24 	to read:
68.25 		Subd. 5.Rate requirements. (a) The commissioner shall establish rates for substance 
68.26 	use disorder services and service enhancements funded under this chapter.
68.27 	(b) Eligible substance use disorder treatment services include:
68.28 	(1) outpatient treatment services that are licensed according to sections 245G.01 to 
68.29 	245G.17, or applicable tribal license;
68.30 	(1) outpatient treatment services licensed according to sections 245G.01 to 245G.17, or 
68.31 	applicable Tribal license, including:
69.1 	(i) ASAM 1.0 Outpatient: zero to eight hours per week of skilled treatment services for 
69.2 	adults and zero to five hours per week for adolescents. Peer recovery and treatment 
69.3 	coordination may be provided beyond the skilled treatment service hours allowable per 
69.4 	week; and
69.5 	(ii) ASAM 2.1 Intensive Outpatient: nine or more hours per week of skilled treatment 
69.6 	services for adults and six or more hours per week for adolescents in accordance with the 
69.7 	limitations in paragraph (h). Peer recovery and treatment coordination may be provided 
69.8 	beyond the skilled treatment service hours allowable per week;
69.9 	(2) comprehensive assessments provided according to sections 245.4863, paragraph (a), 
69.10 	and 245G.05;
69.11 	(3) care coordination services provided according to section 245G.07, subdivision 1, 
69.12 	paragraph (a), clause (5);
69.13 	(4) peer recovery support services provided according to section 245G.07, subdivision 
69.14 	2, clause (8);
69.15 	(5) on July 1, 2019, or upon federal approval, whichever is later, withdrawal management 
69.16 	services provided according to chapter 245F;
69.17 	(6) medication-assisted therapy services that are licensed according to sections 245G.01 
69.18 	to 245G.17 and 245G.22, or applicable tribal license;
69.19 	(7) medication-assisted therapy plus enhanced treatment services that meet the 
69.20 	requirements of clause (6) and provide nine hours of clinical services each week;
69.21 	(8) high, medium, and low intensity residential treatment services that are licensed 
69.22 	according to sections 245G.01 to 245G.17 and 245G.21 or applicable tribal license which 
69.23 	provide, respectively, 30, 15, and five hours of clinical services each week;
69.24 	(9) hospital-based treatment services that are licensed according to sections 245G.01 to 
69.25 	245G.17 or applicable tribal license and licensed as a hospital under sections 144.50 to 
69.26 	144.56;
69.27 	(10) adolescent treatment programs that are licensed as outpatient treatment programs 
69.28 	according to sections 245G.01 to 245G.18 or as residential treatment programs according 
69.29 	to Minnesota Rules, parts 2960.0010 to 2960.0220, and 2960.0430 to 2960.0490, or 
69.30 	applicable tribal license;
69.31 	(11) high-intensity residential treatment services that are licensed according to sections 
69.32 	245G.01 to 245G.17 and 245G.21 or applicable tribal license, which provide 30 hours of 
70.1 	clinical services each week provided by a state-operated vendor or to clients who have been 
70.2 	civilly committed to the commissioner, present the most complex and difficult care needs, 
70.3 	and are a potential threat to the community; and
70.4 	(12) room and board facilities that meet the requirements of subdivision 1a.
70.5 	(c) The commissioner shall establish higher rates for programs that meet the requirements 
70.6 	of paragraph (b) and one of the following additional requirements:
70.7 	(1) programs that serve parents with their children if the program:
70.8 	(i) provides on-site child care during the hours of treatment activity that:
70.9 	(A) is licensed under chapter 245A as a child care center under Minnesota Rules, chapter 
70.10 	9503; or
70.11 	(B) meets the licensure exclusion criteria of section 245A.03, subdivision 2, paragraph 
70.12 	(a), clause (6), and meets the requirements under section 245G.19, subdivision 4; or
70.13 	(ii) arranges for off-site child care during hours of treatment activity at a facility that is 
70.14 	licensed under chapter 245A as:
70.15 	(A) a child care center under Minnesota Rules, chapter 9503; or
70.16 	(B) a family child care home under Minnesota Rules, chapter 9502;
70.17 	(2) culturally specific or culturally responsive programs as defined in section 254B.01, 
70.18 	subdivision 4a;
70.19 	(3) disability responsive programs as defined in section 254B.01, subdivision 4b;
70.20 	(4) programs that offer medical services delivered by appropriately credentialed health 
70.21 	care staff in an amount equal to two hours per client per week if the medical needs of the 
70.22 	client and the nature and provision of any medical services provided are documented in the 
70.23 	client file; or
70.24 	(5) programs that offer services to individuals with co-occurring mental health and 
70.25 	chemical dependency problems if:
70.26 	(i) the program meets the co-occurring requirements in section 245G.20;
70.27 	(ii) 25 percent of the counseling staff are licensed mental health professionals, as defined 
70.28 	in section 245.462, subdivision 18, clauses (1) to (6), or are students or licensing candidates 
70.29 	under the supervision of a licensed alcohol and drug counselor supervisor and licensed 
70.30 	mental health professional, except that no more than 50 percent of the mental health staff 
71.1 	may be students or licensing candidates with time documented to be directly related to 
71.2 	provisions of co-occurring services;
71.3 	(iii) clients scoring positive on a standardized mental health screen receive a mental 
71.4 	health diagnostic assessment within ten days of admission;
71.5 	(iv) the program has standards for multidisciplinary case review that include a monthly 
71.6 	review for each client that, at a minimum, includes a licensed mental health professional 
71.7 	and licensed alcohol and drug counselor, and their involvement in the review is documented;
71.8 	(v) family education is offered that addresses mental health and substance abuse disorders 
71.9 	and the interaction between the two; and
71.10 	(vi) co-occurring counseling staff shall receive eight hours of co-occurring disorder 
71.11 	training annually.
71.12 	(d) In order to be eligible for a higher rate under paragraph (c), clause (1), a program 
71.13 	that provides arrangements for off-site child care must maintain current documentation at 
71.14 	the chemical dependency facility of the child care provider's current licensure to provide 
71.15 	child care services. Programs that provide child care according to paragraph (c), clause (1), 
71.16 	must be deemed in compliance with the licensing requirements in section 245G.19.
71.17 	(e) Adolescent residential programs that meet the requirements of Minnesota Rules, 
71.18 	parts 2960.0430 to 2960.0490 and 2960.0580 to 2960.0690, are exempt from the requirements 
71.19 	in paragraph (c), clause (4), items (i) to (iv).
71.20 	(f) Subject to federal approval, substance use disorder services that are otherwise covered 
71.21 	as direct face-to-face services may be provided via telehealth as defined in section 256B.0625, 
71.22 	subdivision 3b. The use of telehealth to deliver services must be medically appropriate to 
71.23 	the condition and needs of the person being served. Reimbursement shall be at the same 
71.24 	rates and under the same conditions that would otherwise apply to direct face-to-face services.
71.25 	(g) For the purpose of reimbursement under this section, substance use disorder treatment 
71.26 	services provided in a group setting without a group participant maximum or maximum 
71.27 	client to staff ratio under chapter 245G shall not exceed a client to staff ratio of 48 to one. 
71.28 	At least one of the attending staff must meet the qualifications as established under this 
71.29 	chapter for the type of treatment service provided. A recovery peer may not be included as 
71.30 	part of the staff ratio.
71.31 	(h) Payment for outpatient substance use disorder services that are licensed according 
71.32 	to sections 245G.01 to 245G.17 is limited to six hours per day or 30 hours per week unless 
71.33 	prior authorization of a greater number of hours is obtained from the commissioner.

72.1 	EFFECTIVE DATE. This section is effective July 1, 2022, or upon federal approval, 
72.2 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
72.3 	when federal approval is obtained.

72.4 	Sec. 49. Minnesota Statutes 2020, section 256.042, subdivision 1, is amended to read:
72.5 		Subdivision 1.Establishment of the advisory council. (a) The Opiate Epidemic 
72.6 	Response Advisory Council is established to develop and implement a comprehensive and 
72.7 	effective statewide effort to address the opioid addiction and overdose epidemic in Minnesota. 
72.8 	The council shall focus on:
72.9 	(1) prevention and education, including public education and awareness for adults and 
72.10 	youth, prescriber education, the development and sustainability of opioid overdose prevention 
72.11 	and education programs, the role of adult protective services in prevention and response, 
72.12 	and providing financial support to local law enforcement agencies for opiate antagonist 
72.13 	programs;
72.14 	(2) training on the treatment of opioid addiction, including the use of all Food and Drug 
72.15 	Administration approved opioid addiction medications, detoxification, relapse prevention, 
72.16 	patient assessment, individual treatment planning, counseling, recovery supports, diversion 
72.17 	control, and other best practices;
72.18 	(3) the expansion and enhancement of a continuum of care for opioid-related substance 
72.19 	use disorders, including primary prevention, early intervention, treatment, recovery, and 
72.20 	aftercare services; and
72.21 	(4) the development of measures to assess and protect the ability of cancer patients and 
72.22 	survivors, persons battling life-threatening illnesses, persons suffering from severe chronic 
72.23 	pain, and persons at the end stages of life, who legitimately need prescription pain 
72.24 	medications, to maintain their quality of life by accessing these pain medications without 
72.25 	facing unnecessary barriers. The measures must also address the needs of individuals 
72.26 	described in this clause who are elderly or who reside in underserved or rural areas of the 
72.27 	state.
72.28 	(b) The council shall:
72.29 	(1) review local, state, and federal initiatives and activities related to education, 
72.30 	prevention, treatment, and services for individuals and families experiencing and affected 
72.31 	by opioid use disorder;
72.32 	(2) establish priorities to address the state's opioid epidemic, for the purpose of 
72.33 	recommending initiatives to fund;
73.1 	(3) recommend to the commissioner of human services specific projects and initiatives 
73.2 	to be funded;
73.3 	(4) ensure that available funding is allocated to align with other state and federal funding, 
73.4 	to achieve the greatest impact and ensure a coordinated state effort;
73.5 	(5) consult with the commissioners of human services, health, and management and 
73.6 	budget to develop measurable outcomes to determine the effectiveness of funds allocated; 
73.7 	and
73.8 	(6) develop recommendations for an administrative and organizational framework for 
73.9 	the allocation, on a sustainable and ongoing basis, of any money deposited into the separate 
73.10 	account under section 16A.151, subdivision 2, paragraph (f), in order to address the opioid 
73.11 	abuse and overdose epidemic in Minnesota and the areas of focus specified in paragraph 
73.12 	(a).; and
73.13 	(7) review reports, data, and performance measures submitted by municipalities, as 
73.14 	defined in section 466.01, subdivision 1, in receipt of direct payments from settlement 
73.15 	agreements, as described in section 256.043, subdivision 4.
73.16 	(c) The council, in consultation with the commissioner of management and budget, and 
73.17 	within available appropriations, shall select from the awarded grants projects or municipality 
73.18 	projects funded by settlement monies as described in section 256.043, subdivision 4, that 
73.19 	include promising practices or theory-based activities for which the commissioner of 
73.20 	management and budget shall conduct evaluations using experimental or quasi-experimental 
73.21 	design. Grants awarded to proposals or municipality projects funded by settlement monies 
73.22 	that include promising practices or theory-based activities and that are selected for an 
73.23 	evaluation shall be administered to support the experimental or quasi-experimental evaluation 
73.24 	and require grantees and municipality projects to collect and report information that is 
73.25 	needed to complete the evaluation. The commissioner of management and budget, under 
73.26 	section 15.08, may obtain additional relevant data to support the experimental or 
73.27 	quasi-experimental evaluation studies. For the purposes of this paragraph, "municipality" 
73.28 	has the meaning given in section 466.01, subdivision 1.
73.29 	(d) The council, in consultation with the commissioners of human services, health, public 
73.30 	safety, and management and budget, shall establish goals related to addressing the opioid 
73.31 	epidemic and determine a baseline against which progress shall be monitored and set 
73.32 	measurable outcomes, including benchmarks. The goals established must include goals for 
73.33 	prevention and public health, access to treatment, and multigenerational impacts. The council 
73.34 	shall use existing measures and data collection systems to determine baseline data against 
74.1 	which progress shall be measured. The council shall include the proposed goals, the 
74.2 	measurable outcomes, and proposed benchmarks to meet these goals in its initial report to 
74.3 	the legislature under subdivision 5, paragraph (a), due January 31, 2021.

74.4 	Sec. 50. Minnesota Statutes 2020, section 256.042, subdivision 2, is amended to read:
74.5 		Subd. 2.Membership. (a) The council shall consist of the following 19 28 voting 
74.6 	members, appointed by the commissioner of human services except as otherwise specified, 
74.7 	and three nonvoting members:
74.8 	(1) two members of the house of representatives, appointed in the following sequence: 
74.9 	the first from the majority party appointed by the speaker of the house and the second from 
74.10 	the minority party appointed by the minority leader. Of these two members, one member 
74.11 	must represent a district outside of the seven-county metropolitan area, and one member 
74.12 	must represent a district that includes the seven-county metropolitan area. The appointment 
74.13 	by the minority leader must ensure that this requirement for geographic diversity in 
74.14 	appointments is met;
74.15 	(2) two members of the senate, appointed in the following sequence: the first from the 
74.16 	majority party appointed by the senate majority leader and the second from the minority 
74.17 	party appointed by the senate minority leader. Of these two members, one member must 
74.18 	represent a district outside of the seven-county metropolitan area and one member must 
74.19 	represent a district that includes the seven-county metropolitan area. The appointment by 
74.20 	the minority leader must ensure that this requirement for geographic diversity in appointments 
74.21 	is met;
74.22 	(3) one member appointed by the Board of Pharmacy;
74.23 	(4) one member who is a physician appointed by the Minnesota Medical Association;
74.24 	(5) one member representing opioid treatment programs, sober living programs, or 
74.25 	substance use disorder programs licensed under chapter 245G;
74.26 	(6) one member appointed by the Minnesota Society of Addiction Medicine who is an 
74.27 	addiction psychiatrist;
74.28 	(7) one member representing professionals providing alternative pain management 
74.29 	therapies, including, but not limited to, acupuncture, chiropractic, or massage therapy;
74.30 	(8) one member representing nonprofit organizations conducting initiatives to address 
74.31 	the opioid epidemic, with the commissioner's initial appointment being a member 
75.1 	representing the Steve Rummler Hope Network, and subsequent appointments representing 
75.2 	this or other organizations;
75.3 	(9) one member appointed by the Minnesota Ambulance Association who is serving 
75.4 	with an ambulance service as an emergency medical technician, advanced emergency 
75.5 	medical technician, or paramedic;
75.6 	(10) one member representing the Minnesota courts who is a judge or law enforcement 
75.7 	officer;
75.8 	(11) one public member who is a Minnesota resident and who is in opioid addiction 
75.9 	recovery;
75.10 	(12) two 11 members representing Indian tribes, one representing the Ojibwe tribes and 
75.11 	one representing the Dakota tribes each of Minnesota's Tribal Nations;
75.12 	(13) one public member who is a Minnesota resident and who is suffering from chronic 
75.13 	pain, intractable pain, or a rare disease or condition;
75.14 	(14) one mental health advocate representing persons with mental illness;
75.15 	(15) one member appointed by the Minnesota Hospital Association;
75.16 	(16) one member representing a local health department; and
75.17 	(17) the commissioners of human services, health, and corrections, or their designees, 
75.18 	who shall be ex officio nonvoting members of the council.
75.19 	(b) The commissioner of human services shall coordinate the commissioner's 
75.20 	appointments to provide geographic, racial, and gender diversity, and shall ensure that at 
75.21 	least one-half of council members appointed by the commissioner reside outside of the 
75.22 	seven-county metropolitan area. Of the members appointed by the commissioner, to the 
75.23 	extent practicable, at least one member must represent a community of color 
75.24 	disproportionately affected by the opioid epidemic.
75.25 	(c) The council is governed by section 15.059, except that members of the council shall 
75.26 	serve three-year terms and shall receive no compensation other than reimbursement for 
75.27 	expenses. Notwithstanding section 15.059, subdivision 6, the council shall not expire.
75.28 	(d) The chair shall convene the council at least quarterly, and may convene other meetings 
75.29 	as necessary. The chair shall convene meetings at different locations in the state to provide 
75.30 	geographic access, and shall ensure that at least one-half of the meetings are held at locations 
75.31 	outside of the seven-county metropolitan area.
76.1 	(e) The commissioner of human services shall provide staff and administrative services 
76.2 	for the advisory council.
76.3 	(f) The council is subject to chapter 13D.

76.4 	Sec. 51. Minnesota Statutes 2021 Supplement, section 256.042, subdivision 4, is amended 
76.5 	to read:
76.6 		Subd. 4.Grants. (a) The commissioner of human services shall submit a report of the 
76.7 	grants proposed by the advisory council to be awarded for the upcoming calendar year to 
76.8 	the chairs and ranking minority members of the legislative committees with jurisdiction 
76.9 	over health and human services policy and finance, by December 1 of each year, beginning 
76.10 	March 1, 2020.
76.11 	(b) The grants shall be awarded to proposals selected by the advisory council that address 
76.12 	the priorities in subdivision 1, paragraph (a), clauses (1) to (4), unless otherwise appropriated 
76.13 	by the legislature. The advisory council shall determine grant awards and funding amounts 
76.14 	based on the funds appropriated to the commissioner under section 256.043, subdivision 3, 
76.15 	paragraph (e). The commissioner shall award the grants from the opiate epidemic response 
76.16 	fund and administer the grants in compliance with section 16B.97. No more than ten percent 
76.17 	of the grant amount may be used by a grantee for administration. The commissioner must 
76.18 	award at least 40 percent of grants to projects that include a focus on addressing the opiate 
76.19 	crisis in Black and Indigenous communities and communities of color.

76.20 	Sec. 52. Minnesota Statutes 2020, section 256.042, subdivision 5, is amended to read:
76.21 		Subd. 5.Reports. (a) The advisory council shall report annually to the chairs and ranking 
76.22 	minority members of the legislative committees with jurisdiction over health and human 
76.23 	services policy and finance by January 31 of each year, beginning January 31, 2021. The 
76.24 	report shall include information about the individual projects that receive grants, the 
76.25 	municipality projects funded by settlement monies as described in section 256.043, 
76.26 	subdivision 4, and the overall role of the project projects in addressing the opioid addiction 
76.27 	and overdose epidemic in Minnesota. The report must describe the grantees and the activities 
76.28 	implemented, along with measurable outcomes as determined by the council in consultation 
76.29 	with the commissioner of human services and the commissioner of management and budget. 
76.30 	At a minimum, the report must include information about the number of individuals who 
76.31 	received information or treatment, the outcomes the individuals achieved, and demographic 
76.32 	information about the individuals participating in the project; an assessment of the progress 
76.33 	toward achieving statewide access to qualified providers and comprehensive treatment and 
77.1 	recovery services; and an update on the evaluations implemented by the commissioner of 
77.2 	management and budget for the promising practices and theory-based projects that receive 
77.3 	funding.
77.4 	(b) The commissioner of management and budget, in consultation with the Opiate 
77.5 	Epidemic Response Advisory Council, shall report to the chairs and ranking minority 
77.6 	members of the legislative committees with jurisdiction over health and human services 
77.7 	policy and finance when an evaluation study described in subdivision 1, paragraph (c), is 
77.8 	complete on the promising practices or theory-based projects that are selected for evaluation 
77.9 	activities. The report shall include demographic information; outcome information for the 
77.10 	individuals in the program; the results for the program in promoting recovery, employment, 
77.11 	family reunification, and reducing involvement with the criminal justice system; and other 
77.12 	relevant outcomes determined by the commissioner of management and budget that are 
77.13 	specific to the projects that are evaluated. The report shall include information about the 
77.14 	ability of grant programs to be scaled to achieve the statewide results that the grant project 
77.15 	demonstrated.
77.16 	(c) The advisory council, in its annual report to the legislature under paragraph (a) due 
77.17 	by January 31, 2024, shall include recommendations on whether the appropriations to the 
77.18 	specified entities under Laws 2019, chapter 63, should be continued, adjusted, or 
77.19 	discontinued; whether funding should be appropriated for other purposes related to opioid 
77.20 	abuse prevention, education, and treatment; and on the appropriate level of funding for 
77.21 	existing and new uses.
77.22 	(d) Municipalities receiving direct payments for settlement agreements as described in 
77.23 	section 256.043, subdivision 4, must annually report to the commissioner on how the funds 
77.24 	were used on opioid remediation. The report must be submitted in a format prescribed by 
77.25 	the commissioner. The report must include data and measurable outcomes as identified by 
77.26 	the commissioner. The report must include the percent of total funds invested in addressing 
77.27 	disparate outcomes in Black and Indigenous communities and communities of color and 
77.28 	relevant outcomes reported on a longitudinal basis.
77.29 	(e) For the purposes of this subdivision, "municipality" or "municipalities" has the 
77.30 	meaning given in section 466.01, subdivision 1.

77.31 	Sec. 53. Minnesota Statutes 2020, section 256B.0941, is amended by adding a subdivision 
77.32 	to read:
77.33 		Subd. 5.Start-up grants. Start-up grants to prospective psychiatric residential treatment 
77.34 	facility sites may be used for:
78.1 	(1) administrative expenses;
78.2 	(2) consulting services;
78.3 	(3) Health Insurance Portability and Accountability Act of 1996 compliance;
78.4 	(4) therapeutic resources including evidence-based, culturally appropriate curriculums, 
78.5 	and training programs for staff and clients;
78.6 	(5) allowable physical renovations to the property; and
78.7 	(6) emergency workforce shortage uses, as determined by the commissioner.

78.8 	Sec. 54. Minnesota Statutes 2021 Supplement, section 256B.0946, subdivision 1, is 
78.9 	amended to read:
78.10 		Subdivision 1.Required covered service components. (a) Subject to federal approval, 
78.11 	medical assistance covers medically necessary intensive treatment services when the services 
78.12 	are provided by a provider entity certified under and meeting the standards in this section. 
78.13 	The provider entity must make reasonable and good faith efforts to report individual client 
78.14 	outcomes to the commissioner, using instruments and protocols approved by the 
78.15 	commissioner.
78.16 	(b) Intensive treatment services to children with mental illness residing in foster family 
78.17 	settings or with legal guardians that comprise specific required service components provided 
78.18 	in clauses (1) to (6) are reimbursed by medical assistance when they meet the following 
78.19 	standards:
78.20 	(1) psychotherapy provided by a mental health professional or a clinical trainee;
78.21 	(2) crisis planning;
78.22 	(3) individual, family, and group psychoeducation services provided by a mental health 
78.23 	professional or a clinical trainee;
78.24 	(4) clinical care consultation provided by a mental health professional or a clinical 
78.25 	trainee;
78.26 	(5) individual treatment plan development as defined in Minnesota Rules, part 9505.0371, 
78.27 	subpart 7; and
78.28 	(6) service delivery payment requirements as provided under subdivision 4.

78.29 	EFFECTIVE DATE. This section is effective January 1, 2023, or upon federal approval, 
78.30 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
78.31 	when federal approval is obtained.

79.1 	Sec. 55. Minnesota Statutes 2021 Supplement, section 256B.0946, subdivision 1a, is 
79.2 	amended to read:
79.3 		Subd. 1a.Definitions. For the purposes of this section, the following terms have the 
79.4 	meanings given them.
79.5 	(a) "At risk of out-of-home placement" means the child has participated in 
79.6 	community-based therapeutic or behavioral services including psychotherapy within the 
79.7 	past 30 days and has experienced severe difficulty in managing mental health and behavior 
79.8 	in multiple settings and:
79.9 	(1) has previously been in out-of-home placement for mental health issues within the 
79.10 	past six months;
79.11 	(2) has a history of threatening harm to self or others and has actively engaged in 
79.12 	self-harming or threatening behavior in the past 30 days;
79.13 	(3) demonstrates extremely inappropriate or dangerous social behavior in home, 
79.14 	community, and school settings;
79.15 	(4) has a history of repeated intervention from mental health programs, social services, 
79.16 	mobile crisis programs, or law enforcement to maintain safety in the home, community, or 
79.17 	school within the past 60 days; or
79.18 	(5) whose parent is unable to safely manage the child's mental health, behavioral, or 
79.19 	emotional problems in the home and has been actively seeking placement for at least two 
79.20 	weeks.
79.21 	(a) (b) "Clinical care consultation" means communication from a treating clinician to 
79.22 	other providers working with the same client to inform, inquire, and instruct regarding the 
79.23 	client's symptoms, strategies for effective engagement, care and intervention needs, and 
79.24 	treatment expectations across service settings, including but not limited to the client's school, 
79.25 	social services, day care, probation, home, primary care, medication prescribers, disabilities 
79.26 	services, and other mental health providers and to direct and coordinate clinical service 
79.27 	components provided to the client and family.
79.28 	(b) (c) "Clinical trainee" means a staff person who is qualified according to section 
79.29 	245I.04, subdivision 6.
79.30 	(c) (d) "Crisis planning" has the meaning given in section 245.4871, subdivision 9a.
80.1 	(d) (e) "Culturally appropriate" means providing mental health services in a manner that 
80.2 	incorporates the child's cultural influences into interventions as a way to maximize resiliency 
80.3 	factors and utilize cultural strengths and resources to promote overall wellness.
80.4 	(e) (f) "Culture" means the distinct ways of living and understanding the world that are 
80.5 	used by a group of people and are transmitted from one generation to another or adopted 
80.6 	by an individual.
80.7 	(f) (g) "Standard diagnostic assessment" means the assessment described in section 
80.8 	245I.10, subdivision 6.
80.9 	(g) (h) "Family" means a person who is identified by the client or the client's parent or 
80.10 	guardian as being important to the client's mental health treatment. Family may include, 
80.11 	but is not limited to, parents, foster parents, children, spouse, committed partners, former 
80.12 	spouses, persons related by blood or adoption, persons who are a part of the client's 
80.13 	permanency plan, or persons who are presently residing together as a family unit.
80.14 	(h) (i) "Foster care" has the meaning given in section 260C.007, subdivision 18.
80.15 	(i) (j) "Foster family setting" means the foster home in which the license holder resides.
80.16 	(j) (k) "Individual treatment plan" means the plan described in section 245I.10, 
80.17 	subdivisions 7 and 8.
80.18 	(k) (l) "Mental health certified family peer specialist" means a staff person who is 
80.19 	qualified according to section 245I.04, subdivision 12.
80.20 	(l) (m) "Mental health professional" means a staff person who is qualified according to 
80.21 	section 245I.04, subdivision 2.
80.22 	(m) (n) "Mental illness" has the meaning given in section 245I.02, subdivision 29.
80.23 	(n) (o) "Parent" has the meaning given in section 260C.007, subdivision 25.
80.24 	(o) (p) "Psychoeducation services" means information or demonstration provided to an 
80.25 	individual, family, or group to explain, educate, and support the individual, family, or group 
80.26 	in understanding a child's symptoms of mental illness, the impact on the child's development, 
80.27 	and needed components of treatment and skill development so that the individual, family, 
80.28 	or group can help the child to prevent relapse, prevent the acquisition of comorbid disorders, 
80.29 	and achieve optimal mental health and long-term resilience.
80.30 	(p) (q) "Psychotherapy" means the treatment described in section 256B.0671, subdivision 
80.31 	11.
81.1 	(q) (r) "Team consultation and treatment planning" means the coordination of treatment 
81.2 	plans and consultation among providers in a group concerning the treatment needs of the 
81.3 	child, including disseminating the child's treatment service schedule to all members of the 
81.4 	service team. Team members must include all mental health professionals working with the 
81.5 	child, a parent, the child unless the team lead or parent deem it clinically inappropriate, and 
81.6 	at least two of the following: an individualized education program case manager; probation 
81.7 	agent; children's mental health case manager; child welfare worker, including adoption or 
81.8 	guardianship worker; primary care provider; foster parent; and any other member of the 
81.9 	child's service team.
81.10 	(r) (s) "Trauma" has the meaning given in section 245I.02, subdivision 38.
81.11 	(s) (t) "Treatment supervision" means the supervision described under section 245I.06.

81.12 	EFFECTIVE DATE. This section is effective January 1, 2023, or upon federal approval, 
81.13 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
81.14 	when federal approval is obtained.

81.15 	Sec. 56. Minnesota Statutes 2021 Supplement, section 256B.0946, subdivision 2, is 
81.16 	amended to read:
81.17 		Subd. 2.Determination of client eligibility. An eligible recipient is an individual, from 
81.18 	birth through age 20, who is currently placed in a foster home licensed under Minnesota 
81.19 	Rules, parts 2960.3000 to 2960.3340, or placed in a foster home licensed under the 
81.20 	regulations established by a federally recognized Minnesota Tribe, or who is residing in the 
81.21 	legal guardian's home and is at risk of out-of-home placement, and has received: (1) a 
81.22 	standard diagnostic assessment within 180 days before the start of service that documents 
81.23 	that intensive treatment services are medically necessary within a foster family setting to 
81.24 	ameliorate identified symptoms and functional impairments; and (2) a level of care 
81.25 	assessment as defined in section 245I.02, subdivision 19, that demonstrates that the individual 
81.26 	requires intensive intervention without 24-hour medical monitoring, and a functional 
81.27 	assessment as defined in section 245I.02, subdivision 17. The level of care assessment and 
81.28 	the functional assessment must include information gathered from the placing county, Tribe, 
81.29 	or case manager.

81.30 	EFFECTIVE DATE. This section is effective January 1, 2023, or upon federal approval, 
81.31 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
81.32 	when federal approval is obtained.

82.1 	Sec. 57. Minnesota Statutes 2021 Supplement, section 256B.0946, subdivision 3, is 
82.2 	amended to read:
82.3 		Subd. 3.Eligible mental health services providers. (a) Eligible providers for intensive 
82.4 	children's mental health services in a foster family setting must be certified by the state and 
82.5 	have a service provision contract with a county board or a reservation tribal council and 
82.6 	must be able to demonstrate the ability to provide all of the services required in this section 
82.7 	and meet the standards in chapter 245I, as required in section 245I.011, subdivision 5.
82.8 	(b) For purposes of this section, a provider agency must be:
82.9 	(1) a county-operated entity certified by the state;
82.10 	(2) an Indian Health Services facility operated by a Tribe or Tribal organization under 
82.11 	funding authorized by United States Code, title 25, sections 450f to 450n, or title 3 of the 
82.12 	Indian Self-Determination Act, Public Law 93-638, section 638 (facilities or providers); or
82.13 	(3) a noncounty entity.
82.14 	(c) Certified providers that do not meet the service delivery standards required in this 
82.15 	section shall be subject to a decertification process.
82.16 	(d) For the purposes of this section, all services delivered to a client must be provided 
82.17 	by a mental health professional or a clinical trainee.

82.18 	EFFECTIVE DATE. This section is effective January 1, 2023, or upon federal approval, 
82.19 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
82.20 	when federal approval is obtained.

82.21 	Sec. 58. Minnesota Statutes 2021 Supplement, section 256B.0946, subdivision 4, is 
82.22 	amended to read:
82.23 		Subd. 4.Service delivery payment requirements. (a) To be eligible for payment under 
82.24 	this section, a provider must develop and practice written policies and procedures for 
82.25 	intensive treatment in foster care for children, consistent with subdivision 1, paragraph (b), 
82.26 	and comply with the following requirements in paragraphs (b) to (n).
82.27 	(b) Each previous and current mental health, school, and physical health treatment 
82.28 	provider must be contacted to request documentation of treatment and assessments that the 
82.29 	eligible client has received. This information must be reviewed and incorporated into the 
82.30 	standard diagnostic assessment and team consultation and treatment planning review process.
83.1 	(c) Each client receiving treatment must be assessed for a trauma history, and the client's 
83.2 	treatment plan must document how the results of the assessment will be incorporated into 
83.3 	treatment.
83.4 	(d) The level of care assessment as defined in section 245I.02, subdivision 19, and 
83.5 	functional assessment as defined in section 245I.02, subdivision 17, must be updated at 
83.6 	least every 90 days or prior to discharge from the service, whichever comes first.
83.7 	(e) Each client receiving treatment services must have an individual treatment plan that 
83.8 	is reviewed, evaluated, and approved every 90 days using the team consultation and treatment 
83.9 	planning process.
83.10 	(f) Clinical care consultation must be provided in accordance with the client's individual 
83.11 	treatment plan.
83.12 	(g) Each client must have a crisis plan within ten days of initiating services and must 
83.13 	have access to clinical phone support 24 hours per day, seven days per week, during the 
83.14 	course of treatment. The crisis plan must demonstrate coordination with the local or regional 
83.15 	mobile crisis intervention team.
83.16 	(h) Services must be delivered and documented at least three days per week, equaling 
83.17 	at least six hours of treatment per week. If the mental health professional, client, and family 
83.18 	agree, service units may be temporarily reduced for a period of no more than 60 days in 
83.19 	order to meet the needs of the client and family, or as part of transition or on a discharge 
83.20 	plan to another service or level of care. The reasons for service reduction must be identified, 
83.21 	documented, and included in the treatment plan. Billing and payment are prohibited for 
83.22 	days on which no services are delivered and documented.
83.23 	(i) Location of service delivery must be in the client's home, day care setting, school, or 
83.24 	other community-based setting that is specified on the client's individualized treatment plan.
83.25 	(j) Treatment must be developmentally and culturally appropriate for the client.
83.26 	(k) Services must be delivered in continual collaboration and consultation with the 
83.27 	client's medical providers and, in particular, with prescribers of psychotropic medications, 
83.28 	including those prescribed on an off-label basis. Members of the service team must be aware 
83.29 	of the medication regimen and potential side effects.
83.30 	(l) Parents, siblings, foster parents, legal guardians, and members of the child's 
83.31 	permanency plan must be involved in treatment and service delivery unless otherwise noted 
83.32 	in the treatment plan.
84.1 	(m) Transition planning for the a child in foster care must be conducted starting with 
84.2 	the first treatment plan and must be addressed throughout treatment to support the child's 
84.3 	permanency plan and postdischarge mental health service needs.
84.4 	(n) In order for a provider to receive the daily per-client encounter rate, at least one of 
84.5 	the services listed in subdivision 1, paragraph (b), clauses (1) to (3), must be provided. The 
84.6 	services listed in subdivision 1, paragraph (b), clauses (4) and (5), may be included as part 
84.7 	of the daily per-client encounter rate.

84.8 	EFFECTIVE DATE. This section is effective January 1, 2023, or upon federal approval, 
84.9 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
84.10 	when federal approval is obtained.

84.11 	Sec. 59. Minnesota Statutes 2021 Supplement, section 256B.0946, subdivision 6, is 
84.12 	amended to read:
84.13 		Subd. 6.Excluded services. (a) Services in clauses (1) to (7) are not covered under this 
84.14 	section and are not eligible for medical assistance payment as components of children's 
84.15 	intensive treatment in foster care behavioral health services, but may be billed separately:
84.16 	(1) inpatient psychiatric hospital treatment;
84.17 	(2) mental health targeted case management;
84.18 	(3) partial hospitalization;
84.19 	(4) medication management;
84.20 	(5) children's mental health day treatment services;
84.21 	(6) crisis response services under section 256B.0624;
84.22 	(7) transportation; and
84.23 	(8) mental health certified family peer specialist services under section 256B.0616.
84.24 	(b) Children receiving intensive treatment in foster care behavioral health services are 
84.25 	not eligible for medical assistance reimbursement for the following services while receiving 
84.26 	children's intensive treatment in foster care behavioral health services:
84.27 	(1) psychotherapy and skills training components of children's therapeutic services and 
84.28 	supports under section 256B.0943;
84.29 	(2) mental health behavioral aide services as defined in section 256B.0943, subdivision 
84.30 	1, paragraph (l);
85.1 	(3) home and community-based waiver services;
85.2 	(4) mental health residential treatment; and
85.3 	(5) room and board costs as defined in section 256I.03, subdivision 6.

85.4 	EFFECTIVE DATE. This section is effective January 1, 2023, or upon federal approval, 
85.5 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
85.6 	when federal approval is obtained.

85.7 	Sec. 60. Minnesota Statutes 2020, section 256B.0946, subdivision 7, is amended to read:
85.8 		Subd. 7.Medical assistance payment and rate setting. The commissioner shall establish 
85.9 	a single daily per-client encounter rate for children's intensive treatment in foster care
85.10 	behavioral health services. The rate must be constructed to cover only eligible services 
85.11 	delivered to an eligible recipient by an eligible provider, as prescribed in subdivision 1, 
85.12 	paragraph (b).

85.13 	EFFECTIVE DATE. This section is effective January 1, 2023, or upon federal approval, 
85.14 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
85.15 	when federal approval is obtained.

85.16 	Sec. 61. Minnesota Statutes 2020, section 256B.0949, subdivision 15, is amended to read:
85.17 		Subd. 15.EIDBI provider qualifications. (a) A QSP must be employed by an agency 
85.18 	and be:
85.19 	(1) a licensed mental health professional who has at least 2,000 hours of supervised 
85.20 	clinical experience or training in examining or treating people with ASD or a related condition 
85.21 	or equivalent documented coursework at the graduate level by an accredited university in 
85.22 	ASD diagnostics, ASD developmental and behavioral treatment strategies, and typical child 
85.23 	development; or
85.24 	(2) a developmental or behavioral pediatrician who has at least 2,000 hours of supervised 
85.25 	clinical experience or training in examining or treating people with ASD or a related condition 
85.26 	or equivalent documented coursework at the graduate level by an accredited university in 
85.27 	the areas of ASD diagnostics, ASD developmental and behavioral treatment strategies, and 
85.28 	typical child development.
85.29 	(b) A level I treatment provider must be employed by an agency and:
85.30 	(1) have at least 2,000 hours of supervised clinical experience or training in examining 
85.31 	or treating people with ASD or a related condition or equivalent documented coursework 
86.1 	at the graduate level by an accredited university in ASD diagnostics, ASD developmental 
86.2 	and behavioral treatment strategies, and typical child development or an equivalent 
86.3 	combination of documented coursework or hours of experience; and
86.4 	(2) have or be at least one of the following:
86.5 	(i) a master's degree in behavioral health or child development or related fields including, 
86.6 	but not limited to, mental health, special education, social work, psychology, speech 
86.7 	pathology, or occupational therapy from an accredited college or university;
86.8 	(ii) a bachelor's degree in a behavioral health, child development, or related field 
86.9 	including, but not limited to, mental health, special education, social work, psychology, 
86.10 	speech pathology, or occupational therapy, from an accredited college or university, and 
86.11 	advanced certification in a treatment modality recognized by the department;
86.12 	(iii) a board-certified behavior analyst; or
86.13 	(iv) a board-certified assistant behavior analyst with 4,000 hours of supervised clinical 
86.14 	experience that meets all registration, supervision, and continuing education requirements 
86.15 	of the certification.
86.16 	(c) A level II treatment provider must be employed by an agency and must be:
86.17 	(1) a person who has a bachelor's degree from an accredited college or university in a 
86.18 	behavioral or child development science or related field including, but not limited to, mental 
86.19 	health, special education, social work, psychology, speech pathology, or occupational 
86.20 	therapy; and meets at least one of the following:
86.21 	(i) has at least 1,000 hours of supervised clinical experience or training in examining or 
86.22 	treating people with ASD or a related condition or equivalent documented coursework at 
86.23 	the graduate level by an accredited university in ASD diagnostics, ASD developmental and 
86.24 	behavioral treatment strategies, and typical child development or a combination of 
86.25 	coursework or hours of experience;
86.26 	(ii) has certification as a board-certified assistant behavior analyst from the Behavior 
86.27 	Analyst Certification Board;
86.28 	(iii) is a registered behavior technician as defined by the Behavior Analyst Certification 
86.29 	Board; or
86.30 	(iv) is certified in one of the other treatment modalities recognized by the department; 
86.31 	or
86.32 	(2) a person who has:
87.1 	(i) an associate's degree in a behavioral or child development science or related field 
87.2 	including, but not limited to, mental health, special education, social work, psychology, 
87.3 	speech pathology, or occupational therapy from an accredited college or university; and
87.4 	(ii) at least 2,000 hours of supervised clinical experience in delivering treatment to people 
87.5 	with ASD or a related condition. Hours worked as a mental health behavioral aide or level 
87.6 	III treatment provider may be included in the required hours of experience; or
87.7 	(3) a person who has at least 4,000 hours of supervised clinical experience in delivering 
87.8 	treatment to people with ASD or a related condition. Hours worked as a mental health 
87.9 	behavioral aide or level III treatment provider may be included in the required hours of 
87.10 	experience; or
87.11 	(4) a person who is a graduate student in a behavioral science, child development science, 
87.12 	or related field and is receiving clinical supervision by a QSP affiliated with an agency to 
87.13 	meet the clinical training requirements for experience and training with people with ASD 
87.14 	or a related condition; or
87.15 	(5) a person who is at least 18 years of age and who:
87.16 	(i) is fluent in a non-English language or an individual certified by a Tribal Nation;
87.17 	(ii) completed the level III EIDBI training requirements; and
87.18 	(iii) receives observation and direction from a QSP or level I treatment provider at least 
87.19 	once a week until the person meets 1,000 hours of supervised clinical experience.
87.20 	(d) A level III treatment provider must be employed by an agency, have completed the 
87.21 	level III training requirement, be at least 18 years of age, and have at least one of the 
87.22 	following:
87.23 	(1) a high school diploma or commissioner of education-selected high school equivalency 
87.24 	certification;
87.25 	(2) fluency in a non-English language or certification by a Tribal Nation;
87.26 	(3) one year of experience as a primary personal care assistant, community health worker, 
87.27 	waiver service provider, or special education assistant to a person with ASD or a related 
87.28 	condition within the previous five years; or
87.29 	(4) completion of all required EIDBI training within six months of employment.

87.30 	EFFECTIVE DATE. This section is effective January 1, 2022, or upon federal approval, 
87.31 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
87.32 	when federal approval is obtained.

88.1 	Sec. 62. Minnesota Statutes 2020, section 256D.09, subdivision 2a, is amended to read:
88.2 		Subd. 2a.Vendor payments for drug dependent persons. If, at the time of application 
88.3 	or at any other time, there is a reasonable basis for questioning whether a person applying 
88.4 	for or receiving financial assistance is drug dependent, as defined in section 254A.02, 
88.5 	subdivision 5, the person shall be referred for a chemical health assessment, and only 
88.6 	emergency assistance payments or general assistance vendor payments may be provided 
88.7 	until the assessment is complete and the results of the assessment made available to the 
88.8 	county agency. A reasonable basis for referring an individual for an assessment exists when:
88.9 	(1) the person has required detoxification two or more times in the past 12 months;
88.10 	(2) the person appears intoxicated at the county agency as indicated by two or more of 
88.11 	the following:
88.12 	(i) the odor of alcohol;
88.13 	(ii) slurred speech;
88.14 	(iii) disconjugate gaze;
88.15 	(iv) impaired balance;
88.16 	(v) difficulty remaining awake;
88.17 	(vi) consumption of alcohol;
88.18 	(vii) responding to sights or sounds that are not actually present;
88.19 	(viii) extreme restlessness, fast speech, or unusual belligerence;
88.20 	(3) the person has been involuntarily committed for drug dependency at least once in 
88.21 	the past 12 months; or
88.22 	(4) the person has received treatment, including domiciliary care, for drug abuse or 
88.23 	dependency at least twice in the past 12 months.
88.24 	The assessment and determination of drug dependency, if any, must be made by an 
88.25 	assessor qualified under Minnesota Rules, part 9530.6615, subpart 2 section 245G.11, 
88.26 	subdivisions 1 and 5, to perform an assessment of chemical use. The county shall only 
88.27 	provide emergency general assistance or vendor payments to an otherwise eligible applicant 
88.28 	or recipient who is determined to be drug dependent, except up to 15 percent of the grant 
88.29 	amount the person would otherwise receive may be paid in cash. Notwithstanding subdivision 
88.30 	1, the commissioner of human services shall also require county agencies to provide 
88.31 	assistance only in the form of vendor payments to all eligible recipients who assert chemical 
89.1 	dependency as a basis for eligibility under section 256D.05, subdivision 1, paragraph (a), 
89.2 	clauses (1) and (5).
89.3 	The determination of drug dependency shall be reviewed at least every 12 months. If 
89.4 	the county determines a recipient is no longer drug dependent, the county may cease vendor 
89.5 	payments and provide the recipient payments in cash.

89.6 	Sec. 63. Minnesota Statutes 2021 Supplement, section 256L.03, subdivision 2, is amended 
89.7 	to read:
89.8 		Subd. 2.Alcohol and drug dependency. Beginning July 1, 1993, covered health services 
89.9 	shall include individual outpatient treatment of alcohol or drug dependency by a qualified 
89.10 	health professional or outpatient program.
89.11 	Persons who may need chemical dependency services under the provisions of this chapter 
89.12 	shall be assessed by a local agency must be offered access by a local agency to a 
89.13 	comprehensive assessment as defined under section 254B.01 245G.05, and under the 
89.14 	assessment provisions of section 254A.03, subdivision 3. A local agency or managed care 
89.15 	plan under contract with the Department of Human Services must place offer services to a 
89.16 	person in need of chemical dependency services as provided in Minnesota Rules, parts 
89.17 	9530.6600 to 9530.6655 based on the recommendations of section 245G.05. Persons who 
89.18 	are recipients of medical benefits under the provisions of this chapter and who are financially 
89.19 	eligible for behavioral health fund services provided under the provisions of chapter 254B 
89.20 	shall receive chemical dependency treatment services under the provisions of chapter 254B 
89.21 	only if:
89.22 	(1) they have exhausted the chemical dependency benefits offered under this chapter; 
89.23 	or
89.24 	(2) an assessment indicates that they need a level of care not provided under the provisions 
89.25 	of this chapter.
89.26 	Recipients of covered health services under the children's health plan, as provided in 
89.27 	Minnesota Statutes 1990, section 256.936, and as amended by Laws 1991, chapter 292, 
89.28 	article 4, section 17, and recipients of covered health services enrolled in the children's 
89.29 	health plan or the MinnesotaCare program after October 1, 1992, pursuant to Laws 1992, 
89.30 	chapter 549, article 4, sections 5 and 17, are eligible to receive alcohol and drug dependency 
89.31 	benefits under this subdivision.

90.1 	Sec. 64. Minnesota Statutes 2020, section 256L.12, subdivision 8, is amended to read:
90.2 		Subd. 8.Chemical dependency assessments. The managed care plan shall be responsible 
90.3 	for assessing the need and placement for provision of chemical dependency services 
90.4 	according to criteria set forth in Minnesota Rules, parts 9530.6600 to 9530.6655 section 
90.5 	245G.05.

90.6 	Sec. 65. Minnesota Statutes 2020, section 260B.157, subdivision 1, is amended to read:
90.7 		Subdivision 1.Investigation. Upon request of the court the local social services agency 
90.8 	or probation officer shall investigate the personal and family history and environment of 
90.9 	any minor coming within the jurisdiction of the court under section 260B.101 and shall 
90.10 	report its findings to the court. The court may order any minor coming within its jurisdiction 
90.11 	to be examined by a duly qualified physician, psychiatrist, or psychologist appointed by the 
90.12 	court.
90.13 	The court shall order a chemical use assessment conducted when a child is (1) found to 
90.14 	be delinquent for violating a provision of chapter 152, or for committing a felony-level 
90.15 	violation of a provision of chapter 609 if the probation officer determines that alcohol or 
90.16 	drug use was a contributing factor in the commission of the offense, or (2) alleged to be 
90.17 	delinquent for violating a provision of chapter 152, if the child is being held in custody 
90.18 	under a detention order. The assessor's qualifications must comply with section 245G.11, 
90.19 	subdivisions 1 and 5, and the assessment criteria shall must comply with Minnesota Rules, 
90.20 	parts 9530.6600 to 9530.6655 section 245G.05. If funds under chapter 254B are to be used 
90.21 	to pay for the recommended treatment, the assessment and placement must comply with all 
90.22 	provisions of Minnesota Rules, parts 9530.6600 to 9530.6655 and 9530.7000 to 9530.7030
90.23 	sections 245G.05 and 254B.04. The commissioner of human services shall reimburse the 
90.24 	court for the cost of the chemical use assessment, up to a maximum of $100.
90.25 	The court shall order a children's mental health screening conducted when a child is 
90.26 	found to be delinquent. The screening shall be conducted with a screening instrument 
90.27 	approved by the commissioner of human services and shall be conducted by a mental health 
90.28 	practitioner as defined in section 245.4871, subdivision 26, or a probation officer who is 
90.29 	trained in the use of the screening instrument. If the screening indicates a need for assessment, 
90.30 	the local social services agency, in consultation with the child's family, shall have a diagnostic 
90.31 	assessment conducted, including a functional assessment, as defined in section 245.4871.
90.32 	With the consent of the commissioner of corrections and agreement of the county to pay 
90.33 	the costs thereof, the court may, by order, place a minor coming within its jurisdiction in 
90.34 	an institution maintained by the commissioner for the detention, diagnosis, custody and 
91.1 	treatment of persons adjudicated to be delinquent, in order that the condition of the minor 
91.2 	be given due consideration in the disposition of the case. Any funds received under the 
91.3 	provisions of this subdivision shall not cancel until the end of the fiscal year immediately 
91.4 	following the fiscal year in which the funds were received. The funds are available for use 
91.5 	by the commissioner of corrections during that period and are hereby appropriated annually 
91.6 	to the commissioner of corrections as reimbursement of the costs of providing these services 
91.7 	to the juvenile courts.

91.8 	Sec. 66. Minnesota Statutes 2020, section 260B.157, subdivision 3, is amended to read:
91.9 		Subd. 3.Juvenile treatment screening team. (a) The local social services agency shall 
91.10 	establish a juvenile treatment screening team to conduct screenings and prepare case plans 
91.11 	under this subdivision. The team, which may be the team constituted under section 245.4885
91.12 	or 256B.092 or Minnesota Rules, parts 9530.6600 to 9530.6655 chapter 254B, shall consist 
91.13 	of social workers, juvenile justice professionals, and persons with expertise in the treatment 
91.14 	of juveniles who are emotionally disabled, chemically dependent, or have a developmental 
91.15 	disability. The team shall involve parents or guardians in the screening process as appropriate. 
91.16 	The team may be the same team as defined in section 260C.157, subdivision 3.
91.17 	(b) If the court, prior to, or as part of, a final disposition, proposes to place a child:
91.18 	(1) for the primary purpose of treatment for an emotional disturbance, and residential 
91.19 	placement is consistent with section 260.012, a developmental disability, or chemical 
91.20 	dependency in a residential treatment facility out of state or in one which is within the state 
91.21 	and licensed by the commissioner of human services under chapter 245A; or
91.22 	(2) in any out-of-home setting potentially exceeding 30 days in duration, including a 
91.23 	post-dispositional placement in a facility licensed by the commissioner of corrections or 
91.24 	human services, the court shall notify the county welfare agency. The county's juvenile 
91.25 	treatment screening team must either:
91.26 	(i) screen and evaluate the child and file its recommendations with the court within 14 
91.27 	days of receipt of the notice; or
91.28 	(ii) elect not to screen a given case, and notify the court of that decision within three 
91.29 	working days.
91.30 	(c) If the screening team has elected to screen and evaluate the child, the child may not 
91.31 	be placed for the primary purpose of treatment for an emotional disturbance, a developmental 
91.32 	disability, or chemical dependency, in a residential treatment facility out of state nor in a 
92.1 	residential treatment facility within the state that is licensed under chapter 245A, unless one 
92.2 	of the following conditions applies:
92.3 	(1) a treatment professional certifies that an emergency requires the placement of the 
92.4 	child in a facility within the state;
92.5 	(2) the screening team has evaluated the child and recommended that a residential 
92.6 	placement is necessary to meet the child's treatment needs and the safety needs of the 
92.7 	community, that it is a cost-effective means of meeting the treatment needs, and that it will 
92.8 	be of therapeutic value to the child; or
92.9 	(3) the court, having reviewed a screening team recommendation against placement, 
92.10 	determines to the contrary that a residential placement is necessary. The court shall state 
92.11 	the reasons for its determination in writing, on the record, and shall respond specifically to 
92.12 	the findings and recommendation of the screening team in explaining why the 
92.13 	recommendation was rejected. The attorney representing the child and the prosecuting 
92.14 	attorney shall be afforded an opportunity to be heard on the matter.

92.15 	Sec. 67. Minnesota Statutes 2021 Supplement, section 260C.157, subdivision 3, is amended 
92.16 	to read:
92.17 		Subd. 3.Juvenile treatment screening team. (a) The responsible social services agency 
92.18 	shall establish a juvenile treatment screening team to conduct screenings under this chapter 
92.19 	and chapter 260D, for a child to receive treatment for an emotional disturbance, a 
92.20 	developmental disability, or related condition in a residential treatment facility licensed by 
92.21 	the commissioner of human services under chapter 245A, or licensed or approved by a 
92.22 	Tribe. A screening team is not required for a child to be in: (1) a residential facility 
92.23 	specializing in prenatal, postpartum, or parenting support; (2) a facility specializing in 
92.24 	high-quality residential care and supportive services to children and youth who have been 
92.25 	or are at risk of becoming victims of sex trafficking or commercial sexual exploitation; (3) 
92.26 	supervised settings for youth who are 18 years of age or older and living independently; or 
92.27 	(4) a licensed residential family-based treatment facility for substance abuse consistent with 
92.28 	section 260C.190. Screenings are also not required when a child must be placed in a facility 
92.29 	due to an emotional crisis or other mental health emergency.
92.30 	(b) The responsible social services agency shall conduct screenings within 15 days of a 
92.31 	request for a screening, unless the screening is for the purpose of residential treatment and 
92.32 	the child is enrolled in a prepaid health program under section 256B.69, in which case the 
92.33 	agency shall conduct the screening within ten working days of a request. The responsible 
92.34 	social services agency shall convene the juvenile treatment screening team, which may be 
93.1 	constituted under section 245.4885or, 254B.05, or256B.092or Minnesota Rules, parts 
93.2 	9530.6600 to 9530.6655. The team shall consist of social workers; persons with expertise 
93.3 	in the treatment of juveniles who are emotionally disturbed, chemically dependent, or have 
93.4 	a developmental disability; and the child's parent, guardian, or permanent legal custodian. 
93.5 	The team may include the child's relatives as defined in section 260C.007, subdivisions 26b 
93.6 	and 27, the child's foster care provider, and professionals who are a resource to the child's 
93.7 	family such as teachers, medical or mental health providers, and clergy, as appropriate, 
93.8 	consistent with the family and permanency team as defined in section 260C.007, subdivision 
93.9 	16a. Prior to forming the team, the responsible social services agency must consult with the 
93.10 	child's parents, the child if the child is age 14 or older, and, if applicable, the child's Tribe 
93.11 	to obtain recommendations regarding which individuals to include on the team and to ensure 
93.12 	that the team is family-centered and will act in the child's best interests. If the child, child's 
93.13 	parents, or legal guardians raise concerns about specific relatives or professionals, the team 
93.14 	should not include those individuals. This provision does not apply to paragraph (c).
93.15 	(c) If the agency provides notice to Tribes under section 260.761, and the child screened 
93.16 	is an Indian child, the responsible social services agency must make a rigorous and concerted 
93.17 	effort to include a designated representative of the Indian child's Tribe on the juvenile 
93.18 	treatment screening team, unless the child's Tribal authority declines to appoint a 
93.19 	representative. The Indian child's Tribe may delegate its authority to represent the child to 
93.20 	any other federally recognized Indian Tribe, as defined in section 260.755, subdivision 12. 
93.21 	The provisions of the Indian Child Welfare Act of 1978, United States Code, title 25, sections 
93.22 	1901 to 1963, and the Minnesota Indian Family Preservation Act, sections 260.751 to 
93.23 	260.835, apply to this section.
93.24 	(d) If the court, prior to, or as part of, a final disposition or other court order, proposes 
93.25 	to place a child with an emotional disturbance or developmental disability or related condition 
93.26 	in residential treatment, the responsible social services agency must conduct a screening. 
93.27 	If the team recommends treating the child in a qualified residential treatment program, the 
93.28 	agency must follow the requirements of sections 260C.70 to 260C.714.
93.29 	The court shall ascertain whether the child is an Indian child and shall notify the 
93.30 	responsible social services agency and, if the child is an Indian child, shall notify the Indian 
93.31 	child's Tribe as paragraph (c) requires.
93.32 	(e) When the responsible social services agency is responsible for placing and caring 
93.33 	for the child and the screening team recommends placing a child in a qualified residential 
93.34 	treatment program as defined in section 260C.007, subdivision 26d, the agency must: (1) 
93.35 	begin the assessment and processes required in section 260C.704 without delay; and (2) 
94.1 	conduct a relative search according to section 260C.221 to assemble the child's family and 
94.2 	permanency team under section 260C.706. Prior to notifying relatives regarding the family 
94.3 	and permanency team, the responsible social services agency must consult with the child's 
94.4 	parent or legal guardian, the child if the child is age 14 or older, and, if applicable, the child's 
94.5 	Tribe to ensure that the agency is providing notice to individuals who will act in the child's 
94.6 	best interests. The child and the child's parents may identify a culturally competent qualified 
94.7 	individual to complete the child's assessment. The agency shall make efforts to refer the 
94.8 	assessment to the identified qualified individual. The assessment may not be delayed for 
94.9 	the purpose of having the assessment completed by a specific qualified individual.
94.10 	(f) When a screening team determines that a child does not need treatment in a qualified 
94.11 	residential treatment program, the screening team must:
94.12 	(1) document the services and supports that will prevent the child's foster care placement 
94.13 	and will support the child remaining at home;
94.14 	(2) document the services and supports that the agency will arrange to place the child 
94.15 	in a family foster home; or
94.16 	(3) document the services and supports that the agency has provided in any other setting.
94.17 	(g) When the Indian child's Tribe or Tribal health care services provider or Indian Health 
94.18 	Services provider proposes to place a child for the primary purpose of treatment for an 
94.19 	emotional disturbance, a developmental disability, or co-occurring emotional disturbance 
94.20 	and chemical dependency, the Indian child's Tribe or the Tribe delegated by the child's Tribe 
94.21 	shall submit necessary documentation to the county juvenile treatment screening team, 
94.22 	which must invite the Indian child's Tribe to designate a representative to the screening 
94.23 	team.
94.24 	(h) The responsible social services agency must conduct and document the screening in 
94.25 	a format approved by the commissioner of human services.

94.26 	Sec. 68. Minnesota Statutes 2020, section 260E.20, subdivision 1, is amended to read:
94.27 		Subdivision 1.General duties. (a) The local welfare agency shall offer services to 
94.28 	prevent future maltreatment, safeguarding and enhancing the welfare of the maltreated child, 
94.29 	and supporting and preserving family life whenever possible.
94.30 	(b) If the report alleges a violation of a criminal statute involving maltreatment or child 
94.31 	endangerment under section 609.378, the local law enforcement agency and local welfare 
94.32 	agency shall coordinate the planning and execution of their respective investigation and 
94.33 	assessment efforts to avoid a duplication of fact-finding efforts and multiple interviews. 
95.1 	Each agency shall prepare a separate report of the results of the agency's investigation or 
95.2 	assessment.
95.3 	(c) In cases of alleged child maltreatment resulting in death, the local agency may rely 
95.4 	on the fact-finding efforts of a law enforcement investigation to make a determination of 
95.5 	whether or not maltreatment occurred.
95.6 	(d) When necessary, the local welfare agency shall seek authority to remove the child 
95.7 	from the custody of a parent, guardian, or adult with whom the child is living.
95.8 	(e) In performing any of these duties, the local welfare agency shall maintain an 
95.9 	appropriate record.
95.10 	(f) In conducting a family assessment or investigation, the local welfare agency shall 
95.11 	gather information on the existence of substance abuse and domestic violence.
95.12 	(g) If the family assessment or investigation indicates there is a potential for abuse of 
95.13 	alcohol or other drugs by the parent, guardian, or person responsible for the child's care, 
95.14 	the local welfare agency shall conduct a chemical use must coordinate a comprehensive 
95.15 	assessment pursuant to Minnesota Rules, part 9530.6615 section 245G.05.
95.16 	(h) The agency may use either a family assessment or investigation to determine whether 
95.17 	the child is safe when responding to a report resulting from birth match data under section 
95.18 	260E.03, subdivision 23, paragraph (c). If the child subject of birth match data is determined 
95.19 	to be safe, the agency shall consult with the county attorney to determine the appropriateness 
95.20 	of filing a petition alleging the child is in need of protection or services under section 
95.21 	260C.007, subdivision 6, clause (16), in order to deliver needed services. If the child is 
95.22 	determined not to be safe, the agency and the county attorney shall take appropriate action 
95.23 	as required under section 260C.503, subdivision 2.

95.24 	Sec. 69. Minnesota Statutes 2020, section 299A.299, subdivision 1, is amended to read:
95.25 		Subdivision 1.Establishment of team. A county, a multicounty organization of counties 
95.26 	formed by an agreement under section 471.59, or a city with a population of no more than 
95.27 	50,000, may establish a multidisciplinary chemical abuse prevention team. The chemical 
95.28 	abuse prevention team may include, but not be limited to, representatives of health, mental 
95.29 	health, public health, law enforcement, educational, social service, court service, community 
95.30 	education, religious, and other appropriate agencies, and parent and youth groups. For 
95.31 	purposes of this section, "chemical abuse" has the meaning given in Minnesota Rules, part 
95.32 	9530.6605, subpart 6 section 254A.02, subdivision 6a. When possible the team must 
96.1 	coordinate its activities with existing local groups, organizations, and teams dealing with 
96.2 	the same issues the team is addressing.

96.3 	Sec. 70. Laws 2021, First Special Session chapter 7, article 17, section 1, subdivision 2, 
96.4 	is amended to read:
96.5 		Subd. 2.Eligibility. An individual is eligible for the transition to community initiative 
96.6 	if the individual does not meet eligibility criteria for the medical assistance program under 
96.7 	section 256B.056 or 256B.057, but who meets at least one of the following criteria:
96.8 	(1) the person otherwise meets the criteria under section 256B.092, subdivision 13, or 
96.9 	256B.49, subdivision 24;
96.10 	(2) the person has met treatment objectives and no longer requires a hospital-level care 
96.11 	or a secure treatment setting, but the person's discharge from the Anoka Metro Regional 
96.12 	Treatment Center, the Minnesota Security Hospital, or a community behavioral health 
96.13 	hospital would be substantially delayed without additional resources available through the 
96.14 	transitions to community initiative;
96.15 	(3) the person is in a community hospital and on the waiting list for the Anoka Metro 
96.16 	Regional Treatment Center, but alternative community living options would be appropriate 
96.17 	for the person, and the person has received approval from the commissioner; or
96.18 	(4)(i) the person is receiving customized living services reimbursed under section 
96.19 	256B.4914, 24-hour customized living services reimbursed under section 256B.4914, or 
96.20 	community residential services reimbursed under section 256B.4914; (ii) the person expresses 
96.21 	a desire to move; and (iii) the person has received approval from the commissioner.

96.22 	Sec. 71. Laws 2021, First Special Session chapter 7, article 17, section 11, is amended to 
96.23 	read:
96.24 	Sec. 11. EXPAND MOBILE CRISIS.
 96.25 	(a) This act includes $8,000,000 in fiscal year 2022 and $8,000,000 in fiscal year 2023 
96.26 	for additional funding for grants for adult mobile crisis services under Minnesota Statutes, 
96.27 	section 245.4661, subdivision 9, paragraph (b), clause (15) and children's mobile crisis 
96.28 	services under Minnesota Statutes, section 256B.0944. The general fund base in this act for 
96.29 	this purpose is $4,000,000 $8,000,000 in fiscal year 2024 and $0 $8,000,000 in fiscal year 
96.30 	2025.
97.1 	(b) Beginning April 1, 2024, counties may fund and continue conducting activities 
97.2 	funded under this section.
97.3 	(c) All grant activities must be completed by March 31, 2024.
97.4 	(d) This section expires June 30, 2024.

97.5 	Sec. 72. Laws 2021, First Special Session chapter 7, article 17, section 12, is amended to 
97.6 	read:
97.7 	Sec. 12. PSYCHIATRIC RESIDENTIAL TREATMENT FACILITY AND CHILD 
97.8 	AND ADOLESCENT ADULT AND CHILDREN'S MOBILE TRANSITION UNIT
97.9 	UNITS.
 97.10 	(a) This act includes $2,500,000 in fiscal year 2022 and $2,500,000 in fiscal year 2023 
97.11 	for the commissioner of human services to create adult and children's mental health transition 
97.12 	and support teams to facilitate transition back to the community of children or to the least 
97.13 	restrictive level of care from inpatient psychiatric settings, emergency departments, residential 
97.14 	treatment facilities, and child and adolescent behavioral health hospitals. The general fund 
97.15 	base included in this act for this purpose is $1,875,000 in fiscal year 2024 and $0 in fiscal 
97.16 	year 2025.
97.17 	(b) Beginning April 1, 2024, counties may fund and continue conducting activities 
97.18 	funded under this section.
97.19 	(c) This section expires March 31, 2024.

97.20 	Sec. 73. RATE INCREASE FOR MENTAL HEALTH ADULT DAY TREATMENT.
 97.21 	The commissioner of human services must increase the reimbursement rate for adult 
97.22 	day treatment by 50 percent over the reimbursement rate in effect as of June 30, 2022.

97.23 	EFFECTIVE DATE. This section is effective January 1, 2023, or 60 days following 
97.24 	federal approval, whichever is later. The commissioner of human services shall notify the 
97.25 	revisor of statutes when federal approval is obtained.

97.26 	Sec. 74. REPEALER.
 97.27 	(a) Minnesota Statutes 2020, sections 169A.70, subdivision 6; 245G.22, subdivision 19; 
97.28 	254A.02, subdivision 8a; 254A.16, subdivision 6; 254A.19, subdivisions 1a and 2; 254B.04, 
97.29 	subdivisions 2b and 2c; and 254B.041, subdivision 2, are repealed.
97.30 	(b) Minnesota Statutes 2021 Supplement, section 254A.19, subdivision 5, is repealed.
98.1 	(c) Minnesota Rules, parts 9530.7000, subparts 1, 2, 5, 6, 7, 8, 9, 10, 11, 13, 14, 15, 17a, 
98.2 	19, 20, and 21; 9530.7005; 9530.7010; 9530.7012; 9530.7015, subparts 1, 2a, 4, 5, and 6; 
98.3 	9530.7020, subparts 1, 1a, and 2; 9530.7021; 9530.7022, subpart 1; 9530.7025; and 
98.4 	9530.7030, subpart 1, are repealed.

98.5 	ARTICLE 4
98.6 	HEALTH CARE

98.7 	Section 1. Minnesota Statutes 2020, section 256B.055, subdivision 17, is amended to read:
98.8 		Subd. 17.Adults who were in foster care at the age of 18. (a) Medical assistance may 
98.9 	be paid for a person under 26 years of age who was in foster care under the commissioner's 
98.10 	responsibility on the date of attaining 18 years of age or older, and who was enrolled in 
98.11 	medical assistance under the a state plan or a waiver of the a plan while in foster care, in 
98.12 	accordance with section 2004 of the Affordable Care Act.
98.13 	(b) Beginning January 1, 2023, medical assistance may be paid for a person under 26 
98.14 	years of age who was in foster care and enrolled in another state's Medicaid program while 
98.15 	in foster care, in accordance with Public Law 115-271, section 1002, the Substance 
98.16 	Use-Disorder Prevention that Promotes Opioid Recovery and Treatment for Patients and 
98.17 	Communities Act.

98.18 	EFFECTIVE DATE. This section is effective January 1, 2023.

98.19 	Sec. 2. Minnesota Statutes 2020, section 256B.056, subdivision 7, is amended to read:
98.20 		Subd. 7.Period of eligibility. (a) Eligibility is available for the month of application 
98.21 	and for three months prior to application if the person was eligible in those prior months. 
98.22 	A redetermination of eligibility must occur every 12 months.
98.23 	(b) For a person eligible for an insurance affordability program as defined in section 
98.24 	256B.02, subdivision 19, who reports a change that makes the person eligible for medical 
98.25 	assistance, eligibility is available for the month the change was reported and for three months 
98.26 	prior to the month the change was reported, if the person was eligible in those prior months.
98.27 	(c) Once determined eligible for medical assistance, a child under the age of 21 shall be 
98.28 	continuously eligible for a period of up to 12 months, unless:
98.29 	(1) the child reaches age 21;
98.30 	(2) the child requests voluntary termination of coverage;
98.31 	(3) the child ceases to be a resident of Minnesota;
99.1 	(4) the child dies; or
99.2 	(5) the agency determines the child's eligibility was erroneously granted due to agency 
99.3 	error or enrollee fraud, abuse, or perjury.

99.4 	EFFECTIVE DATE. This section is effective January 1, 2023, or upon federal approval, 
99.5 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
99.6 	when federal approval is obtained.

99.7 	Sec. 3. Minnesota Statutes 2020, section 256B.0625, subdivision 28b, is amended to read:
99.8 		Subd. 28b.Doula services. Medical assistance covers doula services provided by a 
99.9 	certified doula as defined in section 148.995, subdivision 2, of the mother's choice. For 
99.10 	purposes of this section, "doula services" means childbirth education and support services, 
99.11 	including emotional and physical support provided during pregnancy, labor, birth, and 
99.12 	postpartum. The commissioner shall enroll doula agencies and individual treating doulas 
99.13 	in order to provide direct reimbursement.

99.14 	EFFECTIVE DATE. This section is effective January 1, 2023, subject to federal 
99.15 	approval. The commissioner of human services shall notify the revisor of statutes when 
99.16 	federal approval is obtained.

99.17 	Sec. 4. Minnesota Statutes 2020, section 256L.04, subdivision 10, is amended to read:
99.18 		Subd. 10.Citizenship requirements. (a) Eligibility for MinnesotaCare is limited to 
99.19 	citizens or nationals of the United States and lawfully present noncitizens as defined in 
99.20 	Code of Federal Regulations, title 8, section 103.12. Undocumented noncitizens, with the 
99.21 	exception of children under age 19, are ineligible for MinnesotaCare. For purposes of this 
99.22 	subdivision, an undocumented noncitizen is an individual who resides in the United States 
99.23 	without the approval or acquiescence of the United States Citizenship and Immigration 
99.24 	Services. Families with children who are citizens or nationals of the United States must 
99.25 	cooperate in obtaining satisfactory documentary evidence of citizenship or nationality 
99.26 	according to the requirements of the federal Deficit Reduction Act of 2005, Public Law 
99.27 	109-171.
99.28 	(b) Notwithstanding subdivisions 1 and 7, eligible persons include families and 
99.29 	individuals who are lawfully present and ineligible for medical assistance by reason of 
99.30 	immigration status and who have incomes equal to or less than 200 percent of federal poverty 
99.31 	guidelines.

99.32 	EFFECTIVE DATE. This section is effective January 1, 2024.

100.1 	ARTICLE 5
100.2 	HEALTH INSURANCE ACCESS

100.3 	Section 1. Minnesota Statutes 2020, section 256L.04, subdivision 1c, is amended to read:
100.4 		Subd. 1c.General requirements. (a) To be eligible for MinnesotaCare, a person must 
100.5 	meet the eligibility requirements of in this section.
100.6 	(b) A person eligible for MinnesotaCare shall not be considered a qualified individual 
100.7 	under section 1312 of the Affordable Care Act, and is not eligible for enrollment in a qualified 
100.8 	health plan with advance payment of the federal premium tax credit offered through MNsure 
100.9 	under chapter 62V.
100.10 	(c) Paragraph (b) does not apply to a person eligible for the buy-in option under 
100.11 	subdivision 15.

100.12 	EFFECTIVE DATE. This section is effective January 1, 2025, or upon federal approval, 
100.13 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
100.14 	when federal approval is obtained.

100.15 	Sec. 2. Minnesota Statutes 2020, section 256L.04, subdivision 7a, is amended to read:
100.16 		Subd. 7a.Ineligibility. Adults whose income is greater than the limits established under 
100.17 	this section may not enroll in the MinnesotaCare program, except as provided in subdivision 
100.18 	15.

100.19 	EFFECTIVE DATE. This section is effective January 1, 2025, or upon federal approval, 
100.20 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
100.21 	when federal approval is obtained.

100.22 	Sec. 3. Minnesota Statutes 2020, section 256L.04, is amended by adding a subdivision to 
100.23 	read:
100.24 		Subd. 15.Persons eligible for buy-in option. (a) Families and individuals with income 
100.25 	above the maximum income eligibility limit specified in subdivision 1 or 7 who meet all 
100.26 	other MinnesotaCare eligibility requirements are eligible for the buy-in option. All other 
100.27 	provisions of this chapter apply unless otherwise specified.
100.28 	(b) Families and individuals with income within or above the maximum income eligibility 
100.29 	limit but ineligible for MinnesotaCare solely due to access to employer-subsidized coverage 
100.30 	under section 256L.07, subdivision 2, are eligible for the buy-in option.
101.1 	(c) Families and individuals may enroll in MinnesotaCare under this subdivision only 
101.2 	during an annual open enrollment period or special enrollment period, as designated by 
101.3 	MNsure in compliance with Code of Federal Regulations, title 45, parts 155.410 and 155.420.

101.4 	EFFECTIVE DATE. This section is effective January 1, 2025, or upon federal approval, 
101.5 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
101.6 	when federal approval is obtained.

101.7 	Sec. 4. Minnesota Statutes 2020, section 256L.07, subdivision 1, is amended to read:
101.8 		Subdivision 1.General requirements. Individuals enrolled in MinnesotaCare under 
101.9 	section 256L.04, subdivision 1, and individuals enrolled in MinnesotaCare under section 
101.10 	256L.04, subdivision 7, whose income increases above 200 percent of the federal poverty 
101.11 	guidelines, are no longer eligible for the program and shall be disenrolled by the 
101.12 	commissioner, unless they continue MinnesotaCare enrollment through the buy-in option 
101.13 	under section 256L.04, subdivision 15. For persons disenrolled under this subdivision, 
101.14 	MinnesotaCare coverage terminates the last day of the calendar month in which the 
101.15 	commissioner sends advance notice according to Code of Federal Regulations, title 42, 
101.16 	section 431.211, that indicates the income of a family or individual exceeds program income 
101.17 	limits.

101.18 	EFFECTIVE DATE. This section is effective January 1, 2025, or upon federal approval, 
101.19 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
101.20 	when federal approval is obtained.

101.21 	Sec. 5. Minnesota Statutes 2021 Supplement, section 256L.07, subdivision 2, is amended 
101.22 	to read:
101.23 		Subd. 2.Must not have access to employer-subsidized minimum essential 
101.24 	coverage. (a) To be eligible, a family or individual must not have access to subsidized health 
101.25 	coverage that is affordable and provides minimum value as defined in Code of Federal 
101.26 	Regulations, title 26, section 1.36B-2.
101.27 	(b) Notwithstanding paragraph (a), an individual who has access through a spouse's or 
101.28 	parent's employer to subsidized health coverage that is deemed minimum essential coverage 
101.29 	under Code of Federal Regulations, title 26, section 1.36B-2, is eligible for MinnesotaCare 
101.30 	if the employee's portion of the annual premium for employee and dependent coverage 
101.31 	exceeds the required contribution percentage, as defined for premium tax credit eligibility 
101.32 	under United States Code, title 26, section 36B(c)(2)(C)(i)(II), as indexed according to item 
101.33 	(iv) of that section, of the individual's household income for the coverage year.
102.1 	(c) This subdivision does not apply to a family or individual who no longer has 
102.2 	employer-subsidized coverage due to the employer terminating health care coverage as an 
102.3 	employee benefit.
102.4 	(d) This subdivision does not apply to a family or individual who enrolls through the 
102.5 	buy-in option under section 256L.04, subdivision 15.

102.6 	EFFECTIVE DATE. This section is effective January 1, 2025, or upon federal approval, 
102.7 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
102.8 	when federal approval is obtained.

102.9 	Sec. 6. Minnesota Statutes 2021 Supplement, section 256L.15, subdivision 2, is amended 
102.10 	to read:
102.11 		Subd. 2.Sliding fee scale; monthly individual or family income. (a) The commissioner 
102.12 	shall establish a sliding fee scale to determine the percentage of monthly individual or family 
102.13 	income that households at different income levels must pay to obtain coverage through the 
102.14 	MinnesotaCare program. The sliding fee scale must be based on the enrollee's monthly 
102.15 	individual or family income.
102.16 	(b) Beginning January 1, 2014, MinnesotaCare enrollees shall pay premiums according 
102.17 	to the premium scale specified in paragraph (d).
102.18 	(c) (b) Paragraph (b) (a) does not apply to:
102.19 	(1) children 20 years of age or younger; and.
102.20 	(2) individuals with household incomes below 35 percent of the federal poverty 
102.21 	guidelines.
102.22 	(d) The following premium scale is established for each individual in the household who 
102.23 	is 21 years of age or older and enrolled in MinnesotaCare:

102.24
102.25	Federal Poverty Guideline 
Greater than or Equal to
	Less than
	Individual Premium 
Amount
	
102.26	35%
	55%
	$4
	
102.27	55%
	80%
	$6
	
102.28	80%
	90%
	$8
	
102.29	90%
	100%
	$10
	
102.30	100%
	110%
	$12
	
102.31	110%
	120%
	$14
	
102.32	120%
	130%
	$15
	
102.33	130%
	140%
	$16
	
103.1	140%
	150%
	$25
	
103.2	150%
	160%
	$37
	
103.3	160%
	170%
	$44
	
103.4	170%
	180%
	$52
	
103.5	180%
	190%
	$61
	
103.6	190%
	200%
	$71
	
103.7	200%
		$80
	
103.8 	(e) (c) Beginning January 1, 2021 2023, the commissioner shall continue to charge 
103.9 	premiums in accordance with the simplified premium scale established to comply with the 
103.10 	American Rescue Plan Act of 2021, in effect from January 1, 2021, through December 31, 
103.11 	2022, for families and individuals eligible under section 256L.04, subdivisions 1 and 7. The 
103.12 	commissioner shall adjust the premium scale established under paragraph (d) as needed to 
103.13 	ensure that premiums do not exceed the amount that an individual would have been required 
103.14 	to pay if the individual was enrolled in an applicable benchmark plan in accordance with 
103.15 	the Code of Federal Regulations, title 42, section 600.505 (a)(1).
103.16 	(d) The commissioner shall establish a sliding premium scale for persons eligible through 
103.17 	the buy-in option under section 256L.04, subdivision 15. Beginning January 1, 2025, persons 
103.18 	eligible through the buy-in option shall pay premiums according to the premium scale 
103.19 	established by the commissioner. Persons 20 years of age or younger are exempt from 
103.20 	paying premiums.

103.21 	EFFECTIVE DATE. This section is effective January 1, 2023, except that the sliding 
103.22 	premium scale established under paragraph (d) is effective January 1, 2025, and is contingent 
103.23 	upon implementation of the buy-in option established under Minnesota Statutes, section 
103.24 	256L.04, subdivision 15. The commissioner of human services shall notify the revisor of 
103.25 	statutes whether the buy-in option has been established under Minnesota Statutes, section 
103.26 	256L.04, subdivision 15.

103.27 	Sec. 7. TRANSITION TO MINNESOTACARE BUY-IN OPTION.
 103.28 	(a) The commissioner of human services shall continue to administer MinnesotaCare 
103.29 	as a basic health program in accordance with Minnesota Statutes, section 256L.02, 
103.30 	subdivision 5.
103.31 	(b) By January 1, 2025, the commissioner of human services shall implement a buy-in 
103.32 	option that allows individuals with income over 200 percent of the federal poverty level to 
103.33 	be determined eligible for MinnesotaCare. Eligible individuals must still meet all other 
103.34 	MinnesotaCare eligibility requirements. By December 15, 2023, the commissioner shall 
104.1 	present the following to the chairs and ranking minority members of the legislative 
104.2 	committees with jurisdiction over health care policy and finance:
104.3 	(1) an implementation plan for the MinnesotaCare buy-in under Minnesota Statutes, 
104.4 	section 256L.04, subdivision 15; and
104.5 	(2) any additional legislative changes needed for implementation.
104.6 	(c) The commissioner of human services shall seek any federal waivers, approvals, and 
104.7 	legislative changes necessary to implement a MinnesotaCare buy-in option. This includes 
104.8 	but is not limited to any waivers, approvals, or legislative changes necessary to allow the 
104.9 	state to:
104.10 	(1) continue to receive federal basic health program payments for basic health 
104.11 	program-eligible MinnesotaCare enrollees and to receive other federal funding for the 
104.12 	MinnesotaCare public option; and
104.13 	(2) receive federal payments equal to the value of premium tax credits and cost-sharing 
104.14 	reductions that MinnesotaCare enrollees with household incomes greater than 200 percent 
104.15 	of the federal poverty guidelines would have otherwise received.
104.16 	(d) In implementing this section, the commissioner of human services shall consult with 
104.17 	the commissioner of commerce and the board of directors of MNsure, and may contract for 
104.18 	technical and actuarial assistance.

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

104.20 	ARTICLE 6
104.21 	WORKFORCE

104.22 	Section 1. WORKFORCE INCENTIVE GRANTS.
104.23 	(a) The commissioner of human services shall establish a grant program for behavioral 
104.24 	health, disability, housing, and older adult Minnesota health care program providers to retain 
104.25 	frontline workers. The grants must be used for:
104.26 	(1) retention and incentive payments;
104.27 	(2) postsecondary loan and tuition payments;
104.28 	(3) child care payments to frontline workers; or
104.29 	(4) additional uses that the commissioner deems allowable.
105.1 	(b) Eligible workers are those who earn $30 or less per hour and have worked in an 
105.2 	eligible profession, as determined by the commissioner, for at least six months. Eligible 
105.3 	workers may receive a maximum annual incentive of up to $5,000.

105.4 	EFFECTIVE DATE. This section is effective July 1, 2022.

105.5 	ARTICLE 7
105.6 	FORECAST ADJUSTMENTS

105.7	Section 1. HUMAN SERVICES APPROPRIATION.
 	
105.8 	The dollar amounts shown in the columns marked "Appropriations" are added to or, if 
105.9 	shown in parentheses, are subtracted from the appropriations in Laws 2021, First Special 
105.10 	Session chapter 7, article 16, from the general fund or any fund named to the Department 
105.11 	of Human Services for the purposes specified in this article, to be available for the fiscal 
105.12 	year indicated for each purpose. The figures "2022" and "2023" used in this article mean 
105.13 	that the appropriations listed under them are available for the fiscal years ending June 30, 
105.14 	2022, or June 30, 2023, respectively. "The first year" is fiscal year 2022. "The second year" 
105.15 	is fiscal year 2023. "The biennium" is fiscal years 2022 and 2023.

105.16				APPROPRIATIONS
	
105.17				Available for the Year
	
105.18				Ending June 30
	
105.19					2022
		2023

105.20
105.21	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

105.22	Subdivision 1.Total Appropriation
 	$
	(349,333,000)
	$
	97,064,000

105.23	Appropriations by Fund
	
105.24	General Fund
	(234,016,000)
	120,525,000
	
105.25
105.26	Health Care Access 
Fund
	(25,878,000)
	(18,853,000)
	
105.27	Federal TANF
	(89,439,000)
	(4,608,000)

105.28	Subd. 2.Forecasted Programs

105.29	(a) MFIP/DWP

105.30	Appropriations by Fund
	
105.31	General Fund
	72,512,000
	(593,000)
	
105.32	Federal TANF
	(89,439,000)
	(4,608,000)

105.33	(b) MFIP Child Care Assistance
		(103,347,000)
		(33,580,000)

106.1	(c) General Assistance
		(2,617,000)
		(1,488,000)

106.2	(d) Minnesota Supplemental Aid
		(1,003,000)
		268,000

106.3	(e) Housing Support
		(1,151,000)
		4,123,000

106.4	(f) Northstar Care for Children
		(4,793,000)
		(6,866,000)

106.5	(g) MinnesotaCare
		(25,878,000)
		(18,853,000)
	
106.6 	These appropriations are from the health care 
106.7 	access fund.

106.8	(h) Medical Assistance

106.9	Appropriations by Fund
	
106.10	General Fund
	(180,728,000)
	183,979,000
	
106.11
106.12	Health Care Access 
Fund
	0
	0

106.13	(i) Alternative Care Program
		0
		0

106.14	(j) Behavioral Health Fund
		(12,889,000)
		(25,318,000)

106.15	Subd. 3.Technical Activities
 		0
		0
	
106.16 	These appropriations are from the federal 
106.17 	TANF fund.

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

106.19 	ARTICLE 8
106.20 	APPROPRIATIONS

106.21	Section 1. HEALTH AND HUMAN SERVICES APPROPRIATIONS.
 	
106.22 	The sums shown in the columns marked "Appropriations" are added to or, if shown in 
106.23 	parentheses, subtracted from the appropriations in Laws 2021, First Special Session chapter 
106.24 	7, article 16, to the agencies and for the purposes specified in this article. The appropriations 
106.25 	are from the general fund or other named fund and are available for the fiscal years indicated 
106.26 	for each purpose. The figures "2022" and "2023" used in this article mean that the addition 
106.27 	to or subtraction from the appropriation listed under them is available for the fiscal year 
106.28 	ending June 30, 2022, or June 30, 2023, respectively. Base adjustments mean the addition 
106.29 	to or subtraction from the base level adjustment set in Laws 2021, First Special Session 
106.30 	chapter 7, article 16. Supplemental appropriations and reductions to appropriations for the 
106.31 	fiscal year ending June 30, 2022, are effective the day following final enactment unless a 
106.32 	different effective date is explicit.

107.1				APPROPRIATIONS
	
107.2				Available for the Year
	
107.3				Ending June 30
	
107.4					2022
		2023

107.5
107.6	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

107.7	Subdivision 1.Total Appropriation
 	$
	335,000
	$
	441,150,000

107.8	Appropriations by Fund
	
107.9		2022
	2023
	
107.10	General
	335,000
	352,565,000
	
107.11	Health Care Access
	-0-
	61,517,000
	
107.12	Federal TANF
	-0-
	26,529,000
	
107.13
107.14	Opiate Epidemic 
Response
	-0-
	539,000

107.15	Subd. 2.Central Office; Operations

107.16	Appropriations by Fund
	
107.17	General
	335,000
	93,508,000
	
107.18	Health Care Access
	-0-
	27,750,000
	
107.19 	(a) Background Studies. (1) $1,779,000 in 
107.20 	fiscal year 2023 is to provide a credit to 
107.21 	providers who paid for emergency background 
107.22 	studies in NETStudy 2.0. This is a onetime 
107.23 	appropriation.
107.24 	(2) $1,851,000 in fiscal year 2023 is to fund 
107.25 	the costs of reprocessing emergency studies 
107.26 	conducted under interagency agreements. This 
107.27 	is a onetime appropriation.
107.28 	(b) Supporting Drug Pricing Litigation 
107.29 	Costs. $228,000 in fiscal year 2022 is for costs 
107.30 	to comply with litigation requirements related 
107.31 	to pharmaceutical drug price litigation. This 
107.32 	is a onetime appropriation.
108.1 	(c) Base Level Adjustment. The general fund 
108.2 	base is increased $12,188,000 in fiscal year 
108.3 	2024 and $9,721,000 in fiscal year 2025. The 
108.4 	health care access fund base is increased  
108.5 	$17,677,000 in fiscal year 2024 and 
108.6 	$17,677,000 in fiscal year 2025.

108.7	Subd. 3.Central Office; Children and Families
 		-0-
		6,145,000
	
108.8 	(a) Child Tax Credit Outreach and 
108.9 	Research. $427,000 in fiscal year 2023 is for 
108.10 	a temporary outreach and research initiative 
108.11 	aimed at addressing systemic economic 
108.12 	barriers for children living in poverty by 
108.13 	improving the rate at which Minnesota 
108.14 	families apply for and receive the federal child 
108.15 	tax credits.
108.16 	(b) Base Level Adjustment. The general fund 
108.17 	base is increased $6,799,000 in fiscal year 
108.18 	2024 and $6,012,000 in fiscal year 2025.

108.19	Subd. 4.Central Office; Health Care

108.20	Appropriations by Fund
	
108.21	General
	-0-
	907,000
	
108.22	Health Care Access
	-0-
	4,298,000
	
108.23 	(a) Interactive Voice Response and 
108.24 	Improving Access for Applications and 
108.25 	Forms. $1,350,000 in fiscal year 2023 is for 
108.26 	the improvement of accessibility to Minnesota 
108.27 	health care programs applications, forms, and 
108.28 	other consumer support resources and services 
108.29 	to enrollees with limited English proficiency. 
108.30 	This is a onetime appropriation.
108.31 	(b) Community-Driven Improvements.
108.32 	$680,000 in fiscal year 2023 is for Minnesota 
108.33 	health care program enrollee engagement 
108.34 	activities.
109.1 	(c) Base Level Adjustment. The general fund 
109.2 	base is increased $836,000 in fiscal year 2024 
109.3 	and $836,000 in fiscal year 2025. The health 
109.4 	care access fund base is increased $4,087,000 
109.5 	in fiscal year 2024 and $6,300,000 in fiscal 
109.6 	year 2025.

109.7	Subd. 5.Central Office; Community Supports

109.8	Appropriations by Fund
	
109.9	General
	-0-
	4,858,000
	
109.10
109.11	Opioid Epidemic 
Response
	-0-
	539,000
	
109.12 	Base Level Adjustment. The general fund 
109.13 	base is increased $6,660,000 in fiscal year 
109.14 	2024 and $8,395,000 in fiscal year 2025.

109.15	Subd. 6.Forecasted Programs; MFIP/DWP

109.16	Appropriations by Fund
	
109.17	General
	-0-
	285,000
	
109.18	Federal TANF
	-0-
	529,000

109.19
109.20	Subd. 7.Forecasted Programs; MFIP Child Care 
Assistance
 		-0-
		101,000

109.21
109.22	Subd. 8.Forecasted Programs; General 
Assistance
 		-0-
		48,000

109.23	Subd. 9.Forecasted Programs; MinnesotaCare
 		-0-
		15,116,000
	
109.24 	This appropriation is from the health care 
109.25 	access fund.

109.26
109.27	Subd. 10.Forecasted Programs; Medical 
Assistance

109.28	Appropriations by Fund
	
109.29	General
	-0-
	(8,571,000)
	
109.30	Health Care Access
	-0-
	14,353,000

110.1
110.2	Subd. 11.Grant Programs; BSF Child Care 
Grants
 		-0-
		-0-
	
110.3 	Base Level Adjustment. The general fund 
110.4 	base is increased $248,359,000 in fiscal year 
110.5 	2024 and $546,442,000 in fiscal year 2025.

110.6
110.7	Subd. 12.Grant Programs; Child Care 
Development Grants
 		-0-
		31,706,000
	
110.8 	(a) Child Care Provider Access to 
110.9 	Technology Grants. $300,000 in fiscal year 
110.10 	2023 is for child care provider access to 
110.11 	technology grants pursuant to Minnesota 
110.12 	Statutes, section 119B.28.
110.13 	(b) One-Stop Regional Assistance Network.
110.14 	Beginning in fiscal year 2025, the base shall 
110.15 	include $1,200,000 from the general fund for 
110.16 	a grant to the statewide child care resource 
110.17 	and referral network to administer the child 
110.18 	care one-stop shop regional assistance network 
110.19 	in accordance with Minnesota Statutes, section 
110.20 	119B.19, subdivision 7, clause (9).
110.21 	(c) Child Care Workforce Development 
110.22 	Grants. Beginning in fiscal year 2025, the 
110.23 	base shall include $1,300,000 for a grant to 
110.24 	the statewide child care resource and referral 
110.25 	network to administer the child care workforce 
110.26 	development grants in accordance with 
110.27 	Minnesota Statutes, section 119B.19, 
110.28 	subdivision 7, clause (10).
110.29 	(d) Shared Services Innovation Grants. The 
110.30 	base shall include $500,000 in fiscal year 2024 
110.31 	and $500,000 in fiscal year 2025 for shared 
110.32 	services innovation grants pursuant to 
110.33 	Minnesota Statutes, section 119B.27.
110.34 	(e) Stabilization Grants for Child Care 
110.35 	Providers Experiencing Financial Hardship.
111.1 	$31,406,000 in fiscal year 2023 is for child 
111.2 	care stabilization grants for child care 
111.3 	programs in extreme financial hardship. This 
111.4 	is a onetime appropriation. Money not 
111.5 	distributed in fiscal year 2023 or 2024 shall 
111.6 	be available until June 30, 2025. Use of grant 
111.7 	money must be made in accordance with 
111.8 	eligibility and compliance requirements 
111.9 	established by the commissioner.
111.10 	(f) Base Level Adjustment. The general fund 
111.11 	base is increased $67,088,000 in fiscal year 
111.12 	2024 and $3,300,000 in fiscal year 2025.

111.13
111.14	Subd. 13.Grant Programs; Children's Services 
Grants
 		-0-
		4,040,000
	
111.15 	(a) American Indian Child Welfare 
111.16 	Initiative; Mille Lacs Band of Ojibwe 
111.17 	Planning. $1,263,000 in fiscal year 2023 is 
111.18 	to support activities necessary for the Mille 
111.19 	Lacs Band of Ojibwe to join the American 
111.20 	Indian child welfare initiative.
111.21 	(b) Expand Parent Support Outreach 
111.22 	Program. The base shall include $7,000,000 
111.23 	in fiscal year 2024 and $7,000,000 in fiscal 
111.24 	year 2025 to expand the parent support 
111.25 	outreach program to community-based 
111.26 	agencies, public health agencies, and schools 
111.27 	to prevent reporting of and entry into the child 
111.28 	welfare system.
111.29 	(c) Thriving Families Safer Children. The 
111.30 	base shall include $30,000 in fiscal year 2024 
111.31 	to plan for an education attendance support 
111.32 	diversionary program to prevent entry into the 
111.33 	child welfare system. The commissioner shall 
111.34 	report back to the legislative committees that 
111.35 	oversee child welfare by January 1, 2025, on 
112.1 	the plan for this program. This is a onetime 
112.2 	appropriation.
112.3 	(d) Family Group Decision Making. The 
112.4 	base shall include $5,000,000 in fiscal year 
112.5 	2024 and $5,000,000 in fiscal year 2025 to 
112.6 	expand the use of family group decision 
112.7 	making to provide opportunity for family 
112.8 	voices concerning critical decisions in child 
112.9 	safety and prevent entry into the child welfare 
112.10 	system.
112.11 	(e) Child Welfare Promising Practices. The 
112.12 	base shall include $5,000,000 in fiscal year 
112.13 	2024 and $5,000,000 in fiscal year 2025 to 
112.14 	develop promising practices for prevention of 
112.15 	out-of-home placement of children and youth.
112.16 	(f) Family Assessment Response. The base 
112.17 	shall include $23,550,000 in fiscal year 2024 
112.18 	and $23,550,000 in fiscal year 2025 to support 
112.19 	counties and Tribes that are members of the 
112.20 	American Indian child welfare initiative in 
112.21 	providing case management services and 
112.22 	support for families being served under family 
112.23 	assessment response, and prevent entry into 
112.24 	the child welfare system.
112.25 	(g) Extend Support for Youth Leaving 
112.26 	Foster Care. $600,000 in fiscal year 2023 is 
112.27 	to extend financial supports for young adults 
112.28 	aging out of foster care to age 22.
112.29 	(h) Grants to Counties for Child Protection 
112.30 	Staff. $1,000,000 in fiscal year 2023 is to 
112.31 	provide grants to counties and American 
112.32 	Indian child welfare initiative Tribes to be 
112.33 	used to reduce extended foster care caseload 
112.34 	sizes to ten cases per worker.
113.1 	(i) Statewide Pool of Qualified Individuals.
113.2 	$1,177,400 in fiscal year 2023 is for grants to 
113.3 	one or more grantees to establish and manage 
113.4 	a pool of state-funded qualified individuals to 
113.5 	assess potential out-of-home placement of a 
113.6 	child in a qualified residential treatment 
113.7 	program. Up to $200,000 of the grants each 
113.8 	fiscal year is available for grantee contracts to 
113.9 	manage the state-funded pool of qualified 
113.10 	individuals. This amount shall also pay for 
113.11 	qualified individual training, certification, and 
113.12 	background studies. Remaining grant money 
113.13 	shall be used until expended to provide 
113.14 	qualified individual services to counties and 
113.15 	Tribes that have joined the American Indian 
113.16 	child welfare initiative pursuant to Minnesota 
113.17 	Statutes, section 256.01, subdivision 14b, to 
113.18 	provide qualified residential treatment 
113.19 	program assessments at no cost to the county 
113.20 	or Tribal agency.
113.21 	(j) Base Level Adjustment. The general fund 
113.22 	base is increased $47,571,000 in fiscal year 
113.23 	2024 and $44,900,000 in fiscal year 2025.

113.24	Subd. 14.Refugee Services Grants
 		-0-
		5,111,000
	
113.25 	(a) Refugee and Immigrant Services.
113.26 	$5,111,000 in fiscal year 2023 is to extend the 
113.27 	refugee and immigrant COVID-19 care line 
113.28 	and expand eligibility for self-sufficiency and 
113.29 	community integration services provided by 
113.30 	community-based nonprofit resettlement 
113.31 	agencies to immigrants in Minnesota.
113.32 	(b) Base Level Adjustment. The general fund 
113.33 	base is increased $5,083,000 in fiscal year 
113.34 	2024 and $0 in fiscal year 2025.

114.1
114.2	Subd. 15.Grant Programs; Children and 
Economic Support Grants
 		-0-
		69,099,000
	
114.3 	(a) Family and Community Resource Hubs.
114.4 	$2,550,000 in fiscal year 2023 is to implement 
114.5 	a sustainable family and community resource 
114.6 	hub model through the community action 
114.7 	agencies under Minnesota Statutes, section 
114.8 	256E.31, and federally recognized Tribes. The 
114.9 	community resource hubs must offer 
114.10 	navigation to several supports and services, 
114.11 	including but not limited to basic needs and 
114.12 	economic assistance, disability services, 
114.13 	healthy development and screening, 
114.14 	developmental and behavioral concerns, 
114.15 	family well-being and mental health, early 
114.16 	learning and child care, dental care, legal 
114.17 	services, and culturally specific services for 
114.18 	American Indian families.
114.19 	(b) Tribal Food Sovereignty Infrastructure 
114.20 	Grants. $4,000,000 in fiscal year 2023 is for 
114.21 	capital and infrastructure development to 
114.22 	support food system changes and provide 
114.23 	equitable access to existing and new methods 
114.24 	of food support for American Indian 
114.25 	communities, including federally recognized 
114.26 	Tribes and American Indian nonprofit 
114.27 	organizations. This is a onetime appropriation 
114.28 	and is available until June 30, 2025.
114.29 	(c) Tribal Food Security. $2,836,000 in fiscal 
114.30 	year 2023 is to promote food security for 
114.31 	American Indian communities, including 
114.32 	federally recognized Tribes and American 
114.33 	Indian nonprofit organizations. This includes 
114.34 	hiring staff, providing culturally relevant 
114.35 	training for building food access, purchasing 
115.1 	technical assistance materials and supplies, 
115.2 	and planning for sustainable food systems.
115.3 	(d) Capital for Emergency Food 
115.4 	Distribution Facilities. $14,931,000 in fiscal 
115.5 	year 2023 is for improving and expanding the 
115.6 	infrastructure of food shelf facilities across 
115.7 	the state, including adding freezer or cooler 
115.8 	space and dry storage space, improving the 
115.9 	safety and sanitation of existing food shelves, 
115.10 	and addressing deferred maintenance or other 
115.11 	facility needs of existing food shelves. Grant 
115.12 	money shall be made available to nonprofit 
115.13 	organizations, federally recognized Tribes, 
115.14 	and local units of government. This is a 
115.15 	onetime appropriation and is available until 
115.16 	June 30, 2025.
115.17 	(e) Food Support Grants. $5,000,000 in 
115.18 	fiscal year 2023 is to provide additional 
115.19 	resources to a diverse food support network 
115.20 	that includes food shelves, food banks, and 
115.21 	meal and food outreach programs. Grant 
115.22 	money shall be made available to nonprofit 
115.23 	organizations, federally recognized Tribes, 
115.24 	and local units of government.
115.25 	(f) Base Level Adjustment. The general fund 
115.26 	base is increased $61,541,000 in fiscal year 
115.27 	2024 and $64,079,000 in fiscal year 2025.

115.28	Subd. 16.Grant Programs; Health Care Grants
 		-0-
		2,000,000
	
115.29 	This is a onetime appropriation.
115.30 	Health and Human Services Vaccination 
115.31 	Rates. $1,000,000 in fiscal year 2023 is for 
115.32 	community outreach grants to increase 
115.33 	vaccination rates among enrollees in 
116.1 	Minnesota health care programs. This is a 
116.2 	onetime appropriation.

116.3
116.4	Subd. 17.Grant Programs; Other Long-Term 
Care Grants
 		-0-
		115,000,000
	
116.5 	Workforce Incentive Grants. $115,000,000 
116.6 	in fiscal year 2023 is for workforce grants to 
116.7 	behavioral health, disability, housing, and 
116.8 	older adult Minnesota health care program 
116.9 	providers for the purpose of retaining workers. 
116.10 	This is a onetime appropriation and is 
116.11 	available until June 30, 2025.

116.12	Subd. 18.Grant Programs; Disabilities Grants
 		-0-
		-0-
	
116.13 	Base Level Adjustment. The general fund 
116.14 	base is increased $500,000 in fiscal year 2024 
116.15 	and $2,000,000 in fiscal year 2025.

116.16
116.17	Subd. 19.Grant Programs; Housing Support 
Grants
 		-0-
		1,100,000
	
116.18 	(a) AmeriCorps Heading Home Corps.
116.19 	$1,100,000 in fiscal year 2023 is for the 
116.20 	AmeriCorps Heading Home Corps program 
116.21 	to fund housing resource navigators supporting 
116.22 	individuals experiencing homelessness.
116.23 	(b) Base Level Adjustment. The general fund 
116.24 	base is increased $1,100,000 in fiscal year 
116.25 	2024 and $12,100,000 in fiscal year 2025.

116.26
116.27	Subd. 20.Grant Programs; Adult Mental Health 
Grants
 		-0-
		7,927,000
	
116.28 	(a) Inpatient Psychiatric and Psychiatric 
116.29 	Residential Treatment Facilities.
116.30 	$10,000,000 in fiscal year 2023 is for 
116.31 	competitive grants to hospitals or mental 
116.32 	health providers to retain, build, or expand 
116.33 	children's inpatient psychiatric beds for 
116.34 	children in need of acute high-level psychiatric 
117.1 	care or psychiatric residential treatment facility 
117.2 	beds as described in Minnesota Statutes, 
117.3 	section 256B.0941. In order to be eligible for 
117.4 	a grant, a hospital or mental health provider 
117.5 	must serve individuals covered by medical 
117.6 	assistance under Minnesota Statutes, section 
117.7 	256B.0625.
117.8 	(b) Expanding Support for Psychiatric 
117.9 	Residential Treatment Facilities. $800,000 
117.10 	in fiscal year 2023 is for start-up grants to 
117.11 	psychiatric residential treatment facilities as 
117.12 	described in Minnesota Statutes, section 
117.13 	256B.0941. Grantees can use grant money for 
117.14 	emergency workforce shortage uses. 
117.15 	Allowable grant uses related to emergency 
117.16 	workforce shortages may include but are not 
117.17 	limited to hiring and retention bonuses, 
117.18 	recruitment of a culturally responsive 
117.19 	workforce, and allowing providers to increase 
117.20 	the hourly rate in order to be competitive in 
117.21 	the market.
117.22 	(c) Base Level Adjustment. The general fund 
117.23 	base is increased $12,791,000 in fiscal year 
117.24 	2024 and $19,916,000 in fiscal year 2025. The 
117.25 	opiate epidemic response base is increased 
117.26 	$2,000,000 in fiscal year 2025.

117.27
117.28	Subd. 21.Grant Programs; Child Mental Health 
Grants
 		-0-
		10,800,000
	
117.29 	Base Level Adjustment. The general fund 
117.30 	base is increased $15,800,000 in fiscal year 
117.31 	2024 and $800,000 in fiscal year  2025.

117.32
117.33	Subd. 22.Grant Programs; Chemical 
Dependency Treatment Support Grants
 		-0-
		2,000,000
	
117.34 	(a) Emerging Mood Disorder Grant 
117.35 	Program. $1,000,000 in fiscal year 2023 is 
118.1 	for emerging mood disorder grants under 
118.2 	Minnesota Statutes, section 245.4904. 
118.3 	Grantees must use grant money as required in 
118.4 	Minnesota Statutes, section 245.4904, 
118.5 	subdivision 2.
118.6 	(b) Substance Use Disorder Treatment and 
118.7 	Prevention Grants. The base shall include 
118.8 	$4,000,000 in fiscal year 2024 and $4,000,000 
118.9 	in fiscal year 2025 for substance use disorder 
118.10 	treatment and prevention grants recommended 
118.11 	by the substance use disorder advisory council.
118.12 	(c) Traditional Healing Grants. The base 
118.13 	shall include $2,000,000 in fiscal year 2025 
118.14 	to extend the traditional healing grant funding 
118.15 	appropriated in Laws 2019, chapter 63, article 
118.16 	3, section 1, paragraph (h), from the opiate 
118.17 	epidemic response account to the 
118.18 	commissioner of human services. This funding 
118.19 	is awarded to all Tribal nations and to five 
118.20 	urban Indian communities for traditional 
118.21 	healing practices to American Indians and to 
118.22 	increase the capacity of culturally specific 
118.23 	providers in the behavioral health workforce.
118.24 	(d) Base Level Adjustment. The general fund 
118.25 	base is increased $2,000,000 in fiscal year 
118.26 	2024 and $2,000,000 in fiscal year 2025.

118.27
118.28	Subd. 23.Direct Care and Treatment - 
Operations
 		-0-
		6,501,000
	
118.29 	Base Level Adjustment. The general fund 
118.30 	base is increased $5,267,000 in fiscal year 
118.31 	2024 and $0 in fiscal year 2025.

118.32	Subd. 24.Technical Activities
 		-0-
		26,000,000
	
118.33 	(a) Transfers; Child Care and Development 
118.34 	Fund. For fiscal years 2024 and 2025, the base 
119.1 	shall include a transfer of $23,500,000 in fiscal 
119.2 	year 2024 and $23,500,000 in fiscal year 2025 
119.3 	from the TANF fund to the child care and 
119.4 	development fund. These are onetime 
119.5 	transfers.
119.6 	(b) Base Level Adjustment. The TANF base 
119.7 	is increased $49,500,000 in fiscal year 2024, 
119.8 	$49,500,000 in fiscal year 2025, and $0 in 
119.9 	fiscal year 2026.

119.10	Sec. 3. BOARD OF DIRECTORS OF MNSURE

119.11	Appropriations by Fund
	
119.12		2022
	2023
	
119.13	General
	-0-
	7,775,000
	
119.14	Health Care Access
	-0-
	3,500,000
	
119.15 	These appropriations may be transferred to 
119.16 	the MNSure account established by Minnesota 
119.17 	Statutes, section 62V.07. The health care 
119.18 	access fund appropriation is onetime.
119.19 	Base Adjustment. The general fund base for 
119.20 	this appropriation is $7,476,000 in fiscal year 
119.21 	2024, $3,521,000 in fiscal year 2025, and $0 
119.22 	in fiscal year 2026.

APPENDIX 

Repealed Minnesota Statutes: 22-05640 

119B.03 BASIC SLIDING FEE PROGRAM.Subdivision 1. Notice of allocation. 
By October 1 of each year, the commissioner shall notify all counties of their final child care fund program allocation. 

Subd. 2.Waiting list. 
Each county that receives funds under this section must keep a written record and report to the commissioner the number of eligible families who have applied for a child care subsidy or have requested child care assistance. Counties shall perform a preliminary determination of eligibility when a family requests child care assistance. At a minimum, a county must make a preliminary determination of eligibility based on family size, income, and authorized activity. A family seeking child care assistance must provide the required information to the county. A family that appears to be eligible must be put on a waiting list if funds are not immediately available. The waiting list must identify students in need of child care. Counties must review and update their waiting list at least every six months. 

Subd. 4.Funding priority. 
(a) First priority for child care assistance under the basic sliding fee program must be given to eligible non-MFIP families who do not have a high school diploma or commissioner of education-selected high school equivalency certification or who need remedial and basic skill courses in order to pursue employment or to pursue education leading to employment and who need child care assistance to participate in the education program. This includes student parents as defined under section 119B.011, subdivision 19b. Within this priority, the following subpriorities must be used: 

(1) child care needs of minor parents; 

(2) child care needs of parents under 21 years of age; and 

(3) child care needs of other parents within the priority group described in this paragraph. 

(b) Second priority must be given to parents who have completed their MFIP or DWP transition year, or parents who are no longer receiving or eligible for diversionary work program supports. 

(c) Third priority must be given to families who are eligible for portable basic sliding fee assistance through the portability pool under subdivision 9. 

(d) Fourth priority must be given to families in which at least one parent is a veteran as defined under section 197.447. 

(e) Families under paragraph (b) must be added to the basic sliding fee waiting list on the date they begin the transition year under section 119B.011, subdivision 20, and must be moved into the basic sliding fee program as soon as possible after they complete their transition year. 

Subd. 4a.Temporary reprioritization. 
(a) Notwithstanding subdivision 4, priority for child care assistance under the basic sliding fee assistance program shall be determined according to this subdivision beginning July 1, 2021, through May 31, 2024. 

(b) First priority must be given to eligible non-MFIP families who do not have a high school diploma or commissioner of education-selected high school equivalency certification or who need remedial and basic skill courses in order to pursue employment or to pursue education leading to employment and who need child care assistance to participate in the education program. This includes student parents as defined under section 119B.011, subdivision 19b. Within this priority, the following subpriorities must be used: 

(1) child care needs of minor parents; 

(2) child care needs of parents under 21 years of age; and 

(3) child care needs of other parents within the priority group described in this paragraph. 

(c) Second priority must be given to families in which at least one parent is a veteran, as defined under section 197.447. 

(d) Third priority must be given to eligible families who do not meet the specifications of paragraph (b), (c), (e), or (f). 

(e) Fourth priority must be given to families who are eligible for portable basic sliding fee assistance through the portability pool under subdivision 9. 

(f) Fifth priority must be given to eligible families receiving services under section 119B.011, subdivision 20a, if the parents have completed their MFIP or DWP transition year, or if the parents are no longer receiving or eligible for DWP supports. 

(g) Families under paragraph (f) must be added to the basic sliding fee waiting list on the date they complete their transition year under section 119B.011, subdivision 20. 

Subd. 5.Review of use of funds; reallocation. 
(a) After each quarter, the commissioner shall review the use of basic sliding fee program allocations by county. The commissioner may reallocate unexpended or unencumbered money among those counties who have expended their full allocation or may allow a county to expend up to ten percent of its allocation in the subsequent allocation period. 

(b) Any unexpended state and federal appropriations from the first year of the biennium may be carried forward to the second year of the biennium. 

Subd. 6.Allocation formula. 
The allocation component of basic sliding fee state and federal funds shall be allocated on a calendar year basis. Funds shall be allocated first in amounts equal to each county's guaranteed floor according to subdivision 8, with any remaining available funds allocated according to the following formula: 

(a) One-fourth of the funds shall be allocated in proportion to each county's total expenditures for the basic sliding fee child care program reported during the most recent fiscal year completed at the time of the notice of allocation. 

(b) Up to one-fourth of the funds shall be allocated in proportion to the number of families participating in the transition year child care program as reported during and averaged over the most recent six months completed at the time of the notice of allocation. Funds in excess of the amount necessary to serve all families in this category shall be allocated according to paragraph (e). 

(c) Up to one-half of the funds shall be allocated in proportion to the average of each county's most recent 12 months of reported waiting list as defined in subdivision 2 and the reinstatement list of those families whose assistance was terminated with the approval of the commissioner under Minnesota Rules, part 3400.0183, subpart 1. Funds in excess of the amount necessary to serve all families in this category shall be allocated according to paragraph (e). 

(d) The amount necessary to serve all families in paragraphs (b) and (c) shall be calculated based on the basic sliding fee average cost of care per family in the county with the highest cost in the most recently completed calendar year. 

(e) Funds in excess of the amount necessary to serve all families in paragraphs (b) and (c) shall be allocated in proportion to each county's total expenditures for the basic sliding fee child care program reported during the most recent fiscal year completed at the time of the notice of allocation. 

Subd. 6a.Allocation due to increased funding. 
When funding increases are implemented within a calendar year, every county must receive an allocation at least equal to its original allocation for the same time period. The remainder of the allocation must be recalculated to reflect the funding increase, according to formulas identified in subdivision 6. 

Subd. 6b.Allocation due to decreased funding. 
When funding decreases are implemented within a calendar year, county allocations must be reduced in an amount proportionate to the reduction in the total allocation for the same time period. This applies when a funding decrease necessitates the revision of an existing calendar year allocation. 

Subd. 8.Guaranteed floor. 
(a) Beginning January 1, 1996, each county's guaranteed floor shall equal 90 percent of the allocation received in the preceding calendar year. For the period January 1, 1999, to December 31, 1999, each county's guaranteed floor must be equal to its original calendar year 1998 allocation or its actual earnings for calendar year 1998, whichever is less. 

(b) When the amount of funds available for allocation is less than the amount available in the previous year, each county's previous year allocation shall be reduced in proportion to the reduction in the statewide funding, for the purpose of establishing the guaranteed floor. 

169A.70 ALCOHOL SAFETY PROGRAMS; CHEMICAL USE ASSESSMENTS.Subd. 6.Method of assessment. 
(a) As used in this subdivision, "collateral contact" means an oral or written communication initiated by an assessor for the purpose of gathering information from an individual or agency, other than the offender, to verify or supplement information provided by the offender during an assessment under this section. The term includes contacts with family members and criminal justice agencies. 

(b) An assessment conducted under this section must include at least one personal interview with the offender designed to make a determination about the extent of the offender's past and present chemical and alcohol use or abuse. It must also include collateral contacts and a review of relevant records or reports regarding the offender including, but not limited to, police reports, arrest reports, driving records, chemical testing records, and test refusal records. If the offender has a probation officer, the officer must be the subject of a collateral contact under this subdivision. If an assessor is unable to make collateral contacts, the assessor shall specify why collateral contacts were not made. 

245G.22 OPIOID TREATMENT PROGRAMS.Subd. 19.Placing authorities. 
A program must provide certain notification and client-specific updates to placing authorities for a client who is enrolled in Minnesota health care programs. At the request of the placing authority, the program must provide client-specific updates, including but not limited to informing the placing authority of positive drug testings and changes in medications used for the treatment of opioid use disorder ordered for the client. 

254A.02 DEFINITIONS.Subd. 8a.Placing authority. 
"Placing authority" means a county, prepaid health plan, or tribal governing board governed by Minnesota Rules, parts 9530.6600 to 9530.6655. 

254A.16 RESPONSIBILITIES OF THE COMMISSIONER.Subd. 6.Monitoring. 
The commissioner shall gather and placing authorities shall provide information to measure compliance with Minnesota Rules, parts 9530.6600 to 9530.6655. The commissioner shall specify the format for data collection to facilitate tracking, aggregating, and using the information. 

254A.19 CHEMICAL USE ASSESSMENTS.Subd. 1a.Emergency room patients. 
A county may enter into a contract with a hospital to provide chemical use assessments under Minnesota Rules, parts 9530.6600 to 9530.6655, for patients admitted to an emergency room or inpatient hospital when: 

(1) an assessor is not available; and 

(2) detoxification services in the county are at full capacity. 

Subd. 2.Probation officer as contact. 
When a chemical use assessment is required under Minnesota Rules, parts 9530.6600 to 9530.6655, for a person who is on probation or under other correctional supervision, the assessor, either orally or in writing, shall contact the person's probation officer to verify or supplement the information provided by the person. 

Subd. 5.Assessment via telehealth. 
Notwithstanding Minnesota Rules, part 9530.6615, subpart 3, item A, a chemical use assessment may be conducted via telehealth as defined in section 256B.0625, subdivision 3b. 

254B.04 ELIGIBILITY FOR BEHAVIORAL HEALTH FUND SERVICES.Subd. 2b.Eligibility for placement in opioid treatment programs. 
 Prior to placement of an individual who is determined by the assessor to require treatment for opioid addiction, the assessor must provide educational information concerning treatment options for opioid addiction, including the use of a medication for the use of opioid addiction. The commissioner shall develop educational materials supported by research and updated periodically that must be used by assessors to comply with this requirement. 

Subd. 2c.Eligibility to receive peer recovery support and treatment service coordination. 
Notwithstanding Minnesota Rules, part 9530.6620, subpart 6, a placing authority may authorize peer recovery support and treatment service coordination for a person who scores a severity of one or more in dimension 4, 5, or 6, under Minnesota Rules, part 9530.6622. Authorization for peer recovery support and treatment service coordination under this subdivision does not need to be provided in conjunction with treatment services under Minnesota Rules, part 9530.6622, subpart 4, 5, or 6. 

254B.041 CHEMICAL DEPENDENCY RULES.Subd. 2.Vendor collections; rule amendment. 
The commissioner may amend Minnesota Rules, parts 9530.7000 to 9530.7025, to require a vendor of chemical dependency transitional and extended care rehabilitation services to collect the cost of care received under a program from an eligible person who has been determined to be partially responsible for treatment costs, and to remit the collections to the commissioner. The commissioner shall pay to a vendor, for the collections, an amount equal to five percent of the collections remitted to the commissioner by the vendor. 

256J.08 DEFINITIONS.Subd. 10.Budget month. 
"Budget month" means the calendar month which the county agency uses to determine the income or circumstances of an assistance unit to calculate the amount of the assistance payment in the payment month. 

Subd. 53.Lump sum. 
"Lump sum" means nonrecurring income as described in section 256P.06, subdivision 3, clause (2), item (ix). 

Subd. 61.Monthly income test. 
"Monthly income test" means the test used to determine ongoing eligibility and the assistance payment amount according to section 256J.21. 

Subd. 62.Nonrecurring income. 
"Nonrecurring income" means a form of income which is received: 

(1) only one time or is not of a continuous nature; or 

(2) in a prospective payment month but is no longer received in the corresponding retrospective payment month. 

Subd. 81.Retrospective budgeting. 
"Retrospective budgeting" means a method of determining the amount of the assistance payment in which the payment month is the second month after the budget month. 

Subd. 83.Significant change. 
"Significant change" means a decline in gross income of the amount of the disregard as defined in section 256P.03 or more from the income used to determine the grant for the current month. 

256J.30 APPLICANT AND PARTICIPANT REQUIREMENTS AND RESPONSIBILITIES.Subd. 5.Monthly MFIP household reports. 
Each assistance unit with a member who has earned income or a recent work history, and each assistance unit that has income deemed to it from a financially responsible person must complete a monthly MFIP household report form. "Recent work history" means the individual received earned income in the report month or any of the previous three calendar months even if the earnings are excluded. To be complete, the MFIP household report form must be signed and dated by the caregivers no earlier than the last day of the reporting period. All questions required to determine assistance payment eligibility must be answered, and documentation of earned income must be included. 

Subd. 7.Due date of MFIP household report form. 
An MFIP household report form must be received by the county agency by the eighth calendar day of the month following the reporting period covered by the form. When the eighth calendar day of the month falls on a weekend or holiday, the MFIP household report form must be received by the county agency the first working day that follows the eighth calendar day. 

Subd. 8.Late MFIP household report forms. 
(a) Paragraphs (b) to (e) apply to the reporting requirements in subdivision 7. 

(b) When the county agency receives an incomplete MFIP household report form, the county agency must immediately contact the caregiver by phone or in writing to acquire the necessary information to complete the form. 

(c) The automated eligibility system must send a notice of proposed termination of assistance to the assistance unit if a complete MFIP household report form is not received by a county agency. The automated notice must be mailed to the caregiver by approximately the 16th of the month. When a caregiver submits an incomplete form on or after the date a notice of proposed termination has been sent, the termination is valid unless the caregiver submits a complete form before the end of the month. 

(d) An assistance unit required to submit an MFIP household report form is considered to have continued its application for assistance if a complete MFIP household report form is received within a calendar month after the month in which the form was due and assistance shall be paid for the period beginning with the first day of that calendar month. 

(e) A county agency must allow good cause exemptions from the reporting requirements under subdivision 5 when any of the following factors cause a caregiver to fail to provide the county agency with a completed MFIP household report form before the end of the month in which the form is due: 

(1) an employer delays completion of employment verification; 

(2) a county agency does not help a caregiver complete the MFIP household report form when the caregiver asks for help; 

(3) a caregiver does not receive an MFIP household report form due to mistake on the part of the department or the county agency or due to a reported change in address; 

(4) a caregiver is ill, or physically or mentally incapacitated; or 

(5) some other circumstance occurs that a caregiver could not avoid with reasonable care which prevents the caregiver from providing a completed MFIP household report form before the end of the month in which the form is due. 

256J.33 PROSPECTIVE AND RETROSPECTIVE MFIP ELIGIBILITY.Subd. 3.Retrospective eligibility. 
After the first two months of MFIP eligibility, a county agency must continue to determine whether an assistance unit is prospectively eligible for the payment month by looking at all factors other than income and then determine whether the assistance unit is retrospectively income eligible by applying the monthly income test to the income from the budget month. When the monthly income test is not satisfied, the assistance payment must be suspended when ineligibility exists for one month or ended when ineligibility exists for more than one month. 

Subd. 4.Monthly income test. 
A county agency must apply the monthly income test retrospectively for each month of MFIP eligibility. An assistance unit is not eligible when the countable income equals or exceeds the MFIP standard of need or the family wage level for the assistance unit. The income applied against the monthly income test must include: 

(1) gross earned income from employment as described in chapter 256P, prior to mandatory payroll deductions, voluntary payroll deductions, wage authorizations, and after the disregards in section 256J.21, subdivision 4, and the allocations in section 256J.36; 

(2) gross earned income from self-employment less deductions for self-employment expenses in section 256J.37, subdivision 5, but prior to any reductions for personal or business state and federal income taxes, personal FICA, personal health and life insurance, and after the disregards in section 256J.21, subdivision 4, and the allocations in section 256J.36; 

(3) unearned income as described in section 256P.06, subdivision 3, after deductions for allowable expenses in section 256J.37, subdivision 9, and allocations in section 256J.36; 

(4) gross earned income from employment as determined under clause (1) which is received by a member of an assistance unit who is a minor child or minor caregiver and less than a half-time student; 

(5) child support received by an assistance unit, excluded under section 256P.06, subdivision 3, clause (2), item (xvi); 

(6) spousal support received by an assistance unit; 

(7) the income of a parent when that parent is not included in the assistance unit; 

(8) the income of an eligible relative and spouse who seek to be included in the assistance unit; and 

(9) the unearned income of a minor child included in the assistance unit. 

Subd. 5.When to terminate assistance. 
When an assistance unit is ineligible for MFIP assistance for two consecutive months, the county agency must terminate MFIP assistance. 

256J.34 CALCULATING ASSISTANCE PAYMENTS.Subdivision 1.Prospective budgeting. 
A county agency must use prospective budgeting to calculate the assistance payment amount for the first two months for an applicant who has not received assistance in this state for at least one payment month preceding the first month of payment under a current application. Notwithstanding subdivision 3, paragraph (a), clause (2), a county agency must use prospective budgeting for the first two months for a person who applies to be added to an assistance unit. Prospective budgeting is not subject to overpayments or underpayments unless fraud is determined under section 256.98. 

(a) The county agency must apply the income received or anticipated in the first month of MFIP eligibility against the need of the first month. The county agency must apply the income received or anticipated in the second month against the need of the second month. 

(b) When the assistance payment for any part of the first two months is based on anticipated income, the county agency must base the initial assistance payment amount on the information available at the time the initial assistance payment is made. 

(c) The county agency must determine the assistance payment amount for the first two months of MFIP eligibility by budgeting both recurring and nonrecurring income for those two months. 

Subd. 2.Retrospective budgeting. 
The county agency must use retrospective budgeting to calculate the monthly assistance payment amount after the payment for the first two months has been made under subdivision 1. 

Subd. 3.Additional uses of retrospective budgeting. 
Notwithstanding subdivision 1, the county agency must use retrospective budgeting to calculate the monthly assistance payment amount for the first two months under paragraphs (a) and (b). 

(a) The county agency must use retrospective budgeting to determine the amount of the assistance payment in the first two months of MFIP eligibility: 

(1) when an assistance unit applies for assistance for the same month for which assistance has been interrupted, the interruption in eligibility is less than one payment month, the assistance payment for the preceding month was issued in this state, and the assistance payment for the immediately preceding month was determined retrospectively; or 

(2) when a person applies in order to be added to an assistance unit, that assistance unit has received assistance in this state for at least the two preceding months, and that person has been living with and has been financially responsible for one or more members of that assistance unit for at least the two preceding months. 

(b) Except as provided in clauses (1) to (4), the county agency must use retrospective budgeting and apply income received in the budget month by an assistance unit and by a financially responsible household member who is not included in the assistance unit against the MFIP standard of need or family wage level to determine the assistance payment to be issued for the payment month. 

(1) When a source of income ends prior to the third payment month, that income is not considered in calculating the assistance payment for that month. When a source of income ends prior to the fourth payment month, that income is not considered when determining the assistance payment for that month. 

(2) When a member of an assistance unit or a financially responsible household member leaves the household of the assistance unit, the income of that departed household member is not budgeted retrospectively for any full payment month in which that household member does not live with that household and is not included in the assistance unit. 

(3) When an individual is removed from an assistance unit because the individual is no longer a minor child, the income of that individual is not budgeted retrospectively for payment months in which that individual is not a member of the assistance unit, except that income of an ineligible child in the household must continue to be budgeted retrospectively against the child's needs when the parent or parents of that child request allocation of their income against any unmet needs of that ineligible child. 

(4) When a person ceases to have financial responsibility for one or more members of an assistance unit, the income of that person is not budgeted retrospectively for the payment months which follow the month in which financial responsibility ends. 

Subd. 4.Significant change in gross income. 
The county agency must recalculate the assistance payment when an assistance unit experiences a significant change, as defined in section 256J.08, resulting in a reduction in the gross income received in the payment month from the gross income received in the budget month. The county agency must issue a supplemental assistance payment based on the county agency's best estimate of the assistance unit's income and circumstances for the payment month. Supplemental assistance payments that result from significant changes are limited to two in a 12-month period regardless of the reason for the change. Notwithstanding any other statute or rule of law, supplementary assistance payments shall not be made when the significant change in income is the result of receipt of a lump sum, receipt of an extra paycheck, business fluctuation in self-employment income, or an assistance unit member's participation in a strike or other labor action. 

256J.37 TREATMENT OF INCOME AND LUMP SUMS.Subd. 10.Treatment of lump sums. 
(a) The agency must treat lump-sum payments as earned or unearned income. If the lump-sum payment is included in the category of income identified in subdivision 9, it must be treated as unearned income. A lump sum is counted as income in the month received and budgeted either prospectively or retrospectively depending on the budget cycle at the time of receipt. When an individual receives a lump-sum payment, that lump sum must be combined with all other earned and unearned income received in the same budget month, and it must be applied according to paragraphs (a) to (c). A lump sum may not be carried over into subsequent months. Any funds that remain in the third month after the month of receipt are counted in the asset limit. 

(b) For a lump sum received by an applicant during the first two months, prospective budgeting is used to determine the payment and the lump sum must be combined with other earned or unearned income received and budgeted in that prospective month. 

(c) For a lump sum received by a participant after the first two months of MFIP eligibility, the lump sum must be combined with other income received in that budget month, and the combined amount must be applied retrospectively against the applicable payment month. 

(d) When a lump sum, combined with other income under paragraphs (b) and (c), is less than the MFIP transitional standard for the appropriate payment month, the assistance payment must be reduced according to the amount of the countable income. When the countable income is greater than the MFIP standard or family wage level, the assistance payment must be suspended for the payment month. 

9530.7000DEFINITIONS. Subpart 1.Scope.  
For the purposes of parts 9530.7000 to 9530.7030, the following terms have the meanings given them. 

Subp. 2.Chemical.  
"Chemical" means alcohol, solvents, and other mood altering substances, including controlled substances as defined in Minnesota Statutes, chapter 152. 

Subp. 5.Chemical dependency treatment services.  
"Chemical dependency treatment services" means services provided by chemical dependency treatment programs licensed according to Minnesota Statutes, chapter 245G, or certified according to parts 2960.0450 to 2960.0490. 

Subp. 6.Client.  
"Client" means an individual who has requested chemical abuse or dependency services, or for whom chemical abuse or dependency services have been requested, from a local agency. 

Subp. 7.Commissioner.  
"Commissioner" means the commissioner of the Minnesota Department of Human Services or the commissioner's designated representative. 

Subp. 8.Behavioral health fund.  
"Behavioral health fund" means money appropriated for payment of chemical dependency treatment services under Minnesota Statutes, chapter 254B. 

Subp. 9.Copayment.  
"Copayment" means the amount an insured person is obligated to pay before the person's third-party payment source is obligated to make a payment, or the amount an insured person is obligated to pay in addition to the amount the person's third-party payment source is obligated to pay. 

Subp. 10.Drug and Alcohol Abuse Normative Evaluation System or DAANES.  
"Drug and Alcohol Abuse Normative Evaluation System" or "DAANES" means the client information system operated by the department's Chemical Dependency Program Division. 

Subp. 11.Department.  
"Department" means the Minnesota Department of Human Services. 

Subp. 13.Income.  
"Income" means the total amount of cash received by an individual from the following sources: 

A.
 cash payments for wages or salaries; 

B.
 cash receipts from nonfarm or farm self-employment, minus deductions allowed by the federal Internal Revenue Service for business or farm expenses; 

C.
 regular cash payments from social security, railroad retirement, unemployment compensation, workers' union funds, veterans' benefits, the Minnesota family investment program, Supplemental Security Income, General Assistance, training stipends, alimony, child support, and military family allotments; 

D.
 cash payments from private pensions, government employee pensions, and regular insurance or annuity payments; 

E.
 cash payments for dividends, interest, rents, or royalties; and 

F.
 periodic cash receipts from estates or trusts. 

Income does not include capital gains; any cash assets drawn down as withdrawals from a bank, the sale of property, a house, or a car; tax refunds, gifts, lump sum inheritances, one time insurance payments, or compensation for injury; court-ordered child support or health insurance premium payments made by the client or responsible relative; and noncash benefits such as health insurance, food or rent received in lieu of wages, and noncash benefits from programs such as Medicare, Medical Assistance, the Supplemental Nutrition Assistance Program, school lunches, and housing assistance. Annual income is the amount reported and verified by an individual as current income calculated prospectively to cover one year. 

Subp. 14.Local agency.  
"Local agency" means the county or multicounty agency authorized under Minnesota Statutes, sections 254B.01, subdivision 5, and 254B.03, subdivision 1, to make placements under the behavioral health fund. 

Subp. 15.Minor child.  
"Minor child" means an individual under the age of 18 years. 

Subp. 17a.Policyholder.  
"Policyholder" means a person who has a third-party payment policy under which a third-party payment source has an obligation to pay all or part of a client's treatment costs. 

Subp. 19.Responsible relative. 
"Responsible relative" means a person who is a member of the client's household and is a client's spouse or the parent of a minor child who is a client. 

Subp. 20.Third-party payment source.  
"Third-party payment source" means a person, entity, or public or private agency other than medical assistance or general assistance medical care that has a probable obligation to pay all or part of the costs of a client's chemical dependency treatment. 

Subp. 21.Vendor.  
"Vendor" means a licensed provider of chemical dependency treatment services that meets the criteria established in Minnesota Statutes, section 254B.05, and that has applied according to part 9505.0195 to participate as a provider in the medical assistance program. 

9530.7005SCOPE AND APPLICABILITY. 
Parts 9530.7000 to 9530.7030 govern the administration of the behavioral health fund, establish the criteria to be applied by local agencies to determine a client's eligibility under the behavioral health fund, and establish a client's obligation to pay for chemical dependency treatment services. 

These parts must be read in conjunction with Minnesota Statutes, chapter 254B, and parts 9530.6600 to 9530.6655. 

9530.7010COUNTY RESPONSIBILITY TO PROVIDE SERVICES. 
The local agency shall provide chemical dependency treatment services to eligible clients who have been assessed and placed by the county according to parts 9530.6600 to 9530.6655 and Minnesota Statutes, chapter 256G. 

9530.7012VENDOR AGREEMENTS. 
When a local agency enters into an agreement with a vendor of chemical dependency treatment services, the agreement must distinguish client per unit room and board costs from per unit chemical dependency treatment services costs. 

For purposes of this part, "chemical dependency treatment services costs" are costs, including related administrative costs, of services that meet the criteria in items A to C: 

A.
 The services are provided within a program licensed according to Minnesota Statutes, chapter 245G, or certified according to parts 2960.0430 to 2960.0490. 

B.
 The services meet the definition of chemical dependency services in Minnesota Statutes, section 254B.01, subdivision 3. 

C.
 The services meet the applicable service standards for licensed chemical dependency treatment programs in item A, but are not under the jurisdiction of the commissioner. 

This part also applies to vendors of room and board services that are provided concurrently with chemical dependency treatment services according to Minnesota Statutes, sections 254B.03, subdivision 2, and 254B.05, subdivision 1. 

This part does not apply when a county contracts for chemical dependency services in an acute care inpatient hospital licensed by the Department of Health under chapter 4640. 

9530.7015CLIENT ELIGIBILITY; BEHAVIORAL HEALTH FUND. Subpart 1.Client eligibility to have treatment totally paid under the behavioral health fund.  
A client who meets the criteria established in item A, B, C, or D shall be eligible to have chemical dependency treatment paid for totally with funds from the behavioral health fund. 

A.
 The client is eligible for MFIP as determined under Minnesota Statutes, chapter 256J. 

B.
 The client is eligible for medical assistance as determined under parts 9505.0010 to 9505.0140. 

C.
 The client is eligible for general assistance, general assistance medical care, or work readiness as determined under parts 9500.1200 to 9500.1272. 

D.
 The client's income is within current household size and income guidelines for entitled persons, as defined in Minnesota Statutes, section 254B.04, subdivision 1, and as determined by the local agency under part 9530.7020, subpart 1. 

Subp. 2a.Third-party payment source and client eligibility for the behavioral health fund.  
Clients who meet the financial eligibility requirement in subpart 1 and who have a third-party payment source are eligible for the behavioral health fund if the third party payment source pays less than 100 percent of the treatment services determined according to parts 9530.6600 to 9530.6655. 

Subp. 4.Client ineligible to have treatment paid for from the behavioral health fund.  
A client who meets the criteria in item A or B shall be ineligible to have chemical dependency treatment services paid for with behavioral health funds. 

A.
 The client has an income that exceeds current household size and income guidelines for entitled persons as defined in Minnesota Statutes, section 254B.04, subdivision 1, and as determined by the local agency under part 9530.7020, subpart 1. 

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

Subp. 5.Eligibility of clients disenrolled from prepaid health plans.  
A client who is disenrolled from a state prepaid health plan during a treatment episode is eligible for continued treatment service that is paid for by the behavioral health fund, until the treatment episode is completed or the client is re-enrolled in a state prepaid health plan if the client meets the criteria in item A or B. The client must: 

A.
 continue to be enrolled in MinnesotaCare, medical assistance, or general assistance medical care; or 

B.
 be eligible according to subparts 1 and 2a and be determined eligible by a local agency under part 9530.7020. 

Subp. 6. County responsibility.  
When a county commits a client under Minnesota Statutes, chapter 253B, to a regional treatment center for chemical dependency treatment services and the client is ineligible for the behavioral health fund, the county is responsible for the payment to the regional treatment center according to Minnesota Statutes, section 254B.05, subdivision 4. 

9530.7020LOCAL AGENCY TO DETERMINE CLIENT ELIGIBILITY. Subpart 1.Local agency duty to determine client eligibility.  
The local agency shall determine a client's eligibility for the behavioral health fund at the time the client is assessed under parts 9530.6600 to 9530.6655. Client eligibility must be determined using forms prescribed by the department. To determine a client's eligibility, the local agency must determine the client's income, the size of the client's household, the availability of a third-party payment source, and a responsible relative's ability to pay for the client's chemical dependency treatment, as specified in items A to C. 

A.
 The local agency must determine the client's income. A client who is a minor child shall not be deemed to have income available to pay for chemical dependency treatment, unless the minor child is responsible for payment under Minnesota Statutes, section 144.347, for chemical dependency treatment services sought under Minnesota Statutes, section 144.343, subdivision 1. 

B.
 The local agency must determine the client's household size according to subitems (1), (2), and (3). 

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

(a)
 the client; 

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

(c)
 the client's siblings who are minors. 

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

(a)
 the client; 

(b)
 the client's spouse; 

(c)
 the client's minor children; and 

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

(3)
 For purposes of this item, household size includes a person listed in subitems (1) and (2) who is in out-of-home placement if a person listed in subitem (1) or (2) is contributing to the cost of care of the person in out-of-home placement. 

C.
 The local agency must determine the client's current prepaid health plan enrollment, the availability of a third-party payment source, including the availability of total payment, partial payment, and amount of copayment. 

D.
 The local agency must provide the required eligibility information to the department in the manner specified by the department. 

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

Subp. 1a.Redetermination of client eligibility.  
The local agency shall redetermine a client's eligibility for CCDTF every six months after the initial eligibility determination, if the client has continued to receive uninterrupted chemical dependency treatment services for that six months. For purposes of this subpart, placement of a client into more than one chemical dependency treatment program in less than ten working days, or placement of a client into a residential chemical dependency treatment program followed by nonresidential chemical dependency treatment services shall be treated as a single placement. 

Subp. 2.Client, responsible relative, and policyholder obligation to cooperate.  
A client, responsible relative, and policyholder shall provide income or wage verification, household size verification, and shall make an assignment of third-party payment rights under subpart 1, item C. If a client, responsible relative, or policyholder does not comply with the provisions of this subpart, the client shall be deemed to be ineligible to have the behavioral health fund pay for his or her chemical dependency treatment, and the client and responsible relative shall be obligated to pay for the full cost of chemical dependency treatment services provided to the client. 

9530.7021PAYMENT AGREEMENTS. 
When the local agency, the client, and the vendor agree that the vendor will accept payment from a third-party payment source for an eligible client's treatment, the local agency, the client, and the vendor shall enter into a third-party payment agreement. The agreement must stipulate that the vendor will accept, as payment in full for services provided to the client, the amount the third-party payor is obligated to pay for services provided to the client. The agreement must be executed in a form prescribed by the commissioner and is not effective unless an authorized representative of each of the three parties has signed it. The local agency shall maintain a record of third-party payment agreements into which the local agency has entered. 

The vendor shall notify the local agency as soon as possible and not less than one business day before discharging a client whose treatment is covered by a payment agreement under this part if the discharge is caused by disruption of the third-party payment. 

9530.7022CLIENT FEES. Subpart 1.Income and household size criteria.  
A client whose household income is within current household size and income guidelines for entitled persons as defined in Minnesota Statutes, section 254B.04, subdivision 1, shall pay no fee. 

9530.7025DENIAL OF PAYMENT. Subpart 1.Denial of payment when required assessment not completed.  
The department shall deny payments from the behavioral health fund to vendors for chemical dependency treatment services provided to clients who have not been assessed and placed by the county in accordance with parts 9530.6600 to 9530.6655. 

Subp. 2.Denial of state participation in behavioral health fund payments when client found not eligible.  
The department shall pay vendors from the behavioral health fund for chemical dependency treatment services provided to clients and shall bill the county for 100 percent of the costs of chemical dependency treatment services as follows: 

A.
 The department shall bill the county for 100 percent of the costs of a client's chemical dependency treatment services when the department determines that the client was not placed in accordance with parts 9530.6600 to 9530.6655. 

B.
 When a county's allocation under Minnesota Statutes, section 254B.02, subdivisions 1 and 2, has been exhausted, and the county's maintenance of effort has been met as required under Minnesota Statutes, section 254B.02, subdivision 3, and the local agency has been notified by the department that the only clients who are eligible to have their treatment paid for from the behavioral health fund are clients who are eligible under part 9530.7015, subpart 1, the department shall bill the county for 100 percent of the costs of a client's chemical dependency treatment services when the department determines that the client was not eligible under part 9530.7015, subpart 1. 

9530.7030VENDOR MUST PARTICIPATE IN DAANES SYSTEM. Subpart 1.Participation a condition of eligibility.  
To be eligible for payment under the behavioral health fund, a vendor must participate in the Drug and Alcohol Normative Evaluation System (DAANES) or submit to the commissioner the information required in DAANES in the format specified by the commissioner.