1.1 	A bill for an act
1.2 	relating to state government; creating a Health and Human Services Coordinating 
1.3 	and Financing Board to coordinate health and human services programs; 
1.4 	restructuring the Department of Human Services by establishing a Department of 
1.5 	Health Care Services, Department of Forensic Services, Department of Direct Care 
1.6 	Services, and Office of Eligibility Services; transferring duties from the Department 
1.7 	of Human Services and other state agencies to the new state agencies and office; 
1.8 	transferring other duties among state agencies; requiring a report;amending 
1.9 	Minnesota Statutes 2020, sections 15A.0815, subdivision 2; 299A.015; Minnesota 
1.10 	Statutes 2021 Supplement, sections 15.01; 15.06, subdivision 1; 43A.08, subdivision 
1.11 	1a; proposing coding for new law in Minnesota Statutes, chapters 60A; 144A; 
1.12 	256; proposing coding for new law as Minnesota Statutes, chapters 246C; 246D; 
1.13 	256T; 256U.
1.14 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.15 	ARTICLE 1
1.16 	HEALTH AND HUMAN SERVICES COORDINATING AND FINANCING BOARD

1.17 	Section 1. [256.0165] HEALTH AND HUMAN SERVICES COORDINATING AND 
1.18 	FINANCING BOARD.
1.19 		Subdivision 1.Establishment; duties. The governor shall establish a Health and Human 
1.20 	Services Coordinating and Financing Board. The board shall coordinate the implementation, 
1.21 	administration, and financing of health and human services programs and initiatives that 
1.22 	are managed by or impact multiple state and county agencies to:
1.23 	(1) deliver state and county services more effectively and efficiently, improve service 
1.24 	integration, and reduce duplication of services;
2.1 	(2) set funding and outcome priorities for programs and initiatives that are managed by 
2.2 	or impact multiple state and county agencies, and allocate federal, state, and local funds 
2.3 	across these programs, initiatives, and agencies, according to these priorities;
2.4 	(3) improve responsiveness to consumer needs and concerns and improve the consumer 
2.5 	experience;
2.6 	(4) address problems in service delivery and service quality promptly and effectively; 
2.7 	and
2.8 	(5) reduce state and county administrative costs.
2.9 		Subd. 2.Membership. The board is comprised of:
2.10 	(1) the commissioners of commerce, direct care services, employment and economic 
2.11 	development, forensic services, health, health care services, human services, and public 
2.12 	safety;
2.13 	(2) the director of the Office of Eligibility Services; and
2.14 	(3) three county representatives, with one member representing a large county, one 
2.15 	representing an intermediate county, and one representing a small county by population, 
2.16 	appointed by the governor upon the recommendation of the Association of Minnesota 
2.17 	Counties.
2.18 		Subd. 3.Governance. (a) The commissioners of health care services and health shall 
2.19 	serve as cochairs. The board is governed by section 15.0575. The board shall meet at least 
2.20 	once per month.
2.21 	(b) The board shall appoint an executive director, who shall serve in the unclassified 
2.22 	service. The constituent state and county agencies shall, using existing resources, make staff 
2.23 	available to the board who shall serve under the executive director.

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

2.25 	ARTICLE 2
2.26 	DEPARTMENT OF HEALTH CARE SERVICES

2.27 	Section 1. Minnesota Statutes 2021 Supplement, section 15.01, is amended to read:
2.28 	15.01 DEPARTMENTS OF THE STATE.
2.29 	The following agencies are designated as the departments of the state government: the 
2.30 	Department of Administration; the Department of Agriculture; the Department of Commerce; 
2.31 	the Department of Corrections; the Department of Education; the Department of Employment 
3.1 	and Economic Development; the Department of Health; the Department of Health Care 
3.2 	Services; the Department of Human Rights; the Department of Human Services; the 
3.3 	Department of Information Technology Services; the Department of Iron Range Resources 
3.4 	and Rehabilitation; the Department of Labor and Industry; the Department of Management 
3.5 	and Budget; the Department of Military Affairs; the Department of Natural Resources; the 
3.6 	Department of Public Safety; ~~the Department of Human Services;~~ the Department of 
3.7 	Revenue; the Department of Transportation; the Department of Veterans Affairs; and their 
3.8 	successor departments.

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

3.10 	Sec. 2. Minnesota Statutes 2021 Supplement, section 15.06, subdivision 1, is amended to 
3.11 	read:
3.12 		Subdivision 1.Applicability. This section applies to the following departments or 
3.13 	agencies: the Departments of Administration~~,~~; Agriculture, Commerce~~,~~; Corrections~~,~~;
3.14 	Education~~,~~; Employment and Economic Development~~,~~; Health~~,~~; Health Care Services;
3.15 	Human Rights~~,~~;Human Services; Labor and Industry~~,~~; Management and Budget~~,~~; Natural 
3.16 	Resources~~,~~; Public Safety~~, Human Services,~~; Revenue~~,~~; Transportation~~,~~; and Veterans 
3.17 	Affairs; the Housing Finance and Pollution Control Agencies; the Office of Commissioner 
3.18 	of Iron Range Resources and Rehabilitation; the Department of Information Technology 
3.19 	Services; the Bureau of Mediation Services; and their successor departments and agencies. 
3.20 	The heads of the foregoing departments or agencies are "commissioners."

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

3.22 	Sec. 3. Minnesota Statutes 2020, section 15A.0815, subdivision 2, is amended to read:
3.23 		Subd. 2.Group I salary limits. The salary for a position listed in this subdivision shall 
3.24 	not exceed 133 percent of the salary of the governor. This limit must be adjusted annually 
3.25 	on January 1. The new limit must equal the limit for the prior year increased by the percentage 
3.26 	increase, if any, in the Consumer Price Index for all urban consumers from October of the 
3.27 	second prior year to October of the immediately prior year. The commissioner of management 
3.28 	and budget must publish the limit on the department's website. This subdivision applies to 
3.29 	the following positions:
3.30 	Commissioner of administration;
3.31 	Commissioner of agriculture;
3.32 	Commissioner of education;
4.1 	Commissioner of commerce;
4.2 	Commissioner of corrections;
4.3 	Commissioner of health;
4.4 	Commissioner of health care services;
4.5 	Commissioner, Minnesota Office of Higher Education;
4.6 	Commissioner, Housing Finance Agency;
4.7 	Commissioner of human rights;
4.8 	Commissioner of human services;
4.9 	Commissioner of labor and industry;
4.10 	Commissioner of management and budget;
4.11 	Commissioner of natural resources;
4.12 	Commissioner, Pollution Control Agency;
4.13 	Commissioner of public safety;
4.14 	Commissioner of revenue;
4.15 	Commissioner of employment and economic development;
4.16 	Commissioner of transportation; and
4.17 	Commissioner of veterans affairs.

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

4.19 	Sec. 4. Minnesota Statutes 2021 Supplement, section 43A.08, subdivision 1a, is amended 
4.20 	to read:
4.21 		Subd. 1a.Additional unclassified positions. Appointing authorities for the following 
4.22 	agencies may designate additional unclassified positions according to this subdivision: the 
4.23 	Departments of Administration; Agriculture; Commerce; Corrections; Education; 
4.24 	Employment and Economic Development; Explore Minnesota Tourism; Management and 
4.25 	Budget; Health; Health Care Services; Human Rights; Human Services; Labor and Industry; 
4.26 	Natural Resources; Public Safety; ~~Human Services;~~ Revenue; Transportation; and Veterans 
4.27 	Affairs; the Housing Finance and Pollution Control Agencies; the State Lottery; the State 
4.28 	Board of Investment; the Office of Administrative Hearings; the Department of Information 
4.29 	Technology Services; the Offices of the Attorney General, Secretary of State, and State 
5.1 	Auditor; the Minnesota State Colleges and Universities; the Minnesota Office of Higher 
5.2 	Education; the Perpich Center for Arts Education; and the Minnesota Zoological Board.
5.3 	A position designated by an appointing authority according to this subdivision must 
5.4 	meet the following standards and criteria:
5.5 	(1) the designation of the position would not be contrary to other law relating specifically 
5.6 	to that agency;
5.7 	(2) the person occupying the position would report directly to the agency head or deputy 
5.8 	agency head and would be designated as part of the agency head's management team;
5.9 	(3) the duties of the position would involve significant discretion and substantial 
5.10 	involvement in the development, interpretation, and implementation of agency policy;
5.11 	(4) the duties of the position would not require primarily personnel, accounting, or other 
5.12 	technical expertise where continuity in the position would be important;
5.13 	(5) there would be a need for the person occupying the position to be accountable to, 
5.14 	loyal to, and compatible with, the governor and the agency head, the employing statutory 
5.15 	board or commission, or the employing constitutional officer;
5.16 	(6) the position would be at the level of division or bureau director or assistant to the 
5.17 	agency head; and
5.18 	(7) the commissioner has approved the designation as being consistent with the standards 
5.19 	and criteria in this subdivision.

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

5.21 	Sec. 5. [256T.01] DEPARTMENT OF HEALTH CARE SERVICES.
5.22 	The Department of Health Care Services is created. The governor shall appoint the 
5.23 	commissioner of health care services under section 15.06. The commissioner shall administer:
5.24 	(1) the medical assistance program under chapters 256 and 256B;
5.25 	(2) the MinnesotaCare program under chapter 256L;
5.26 	(3) mental health and chemical dependency services under chapters 245, 253C, 254A, 
5.27 	and 254B;
5.28 	(4) services for the elderly under chapters 256, 256B, and 256S;
5.29 	(5) services for persons with disabilities under chapters 245D, 248, 252, 256C, and 
5.30 	256Q; and
6.1 	(6) health care quality, health care analysis, health economics, and related data collection 
6.2 	initiatives under chapters 62J, 62U, and 144.

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

6.4 	Sec. 6. [256T.05] TRANSFER OF DUTIES.
6.5 	(a) Section 15.039 applies to the transfer of duties required by this chapter.
6.6 	(b) The commissioner of administration, with the approval of the governor, may issue 
6.7 	reorganization orders under section 16B.37 as necessary to carry out the transfer of duties 
6.8 	required by this chapter. The provision of section 16B.37, subdivision 1, stating that transfers 
6.9 	under section 16B.37 may be made only to an agency that has been in existence for at least 
6.10 	one year does not apply to transfers to an agency created by this chapter.
6.11 	(c) The initial salary for the commissioner of health care services is the same as the 
6.12 	salary for the commissioner of health. The salary may be changed in the manner specified 
6.13 	in section 15A.0815.
6.14 	(d) The commissioner of management and budget must ensure that the aggregate cost 
6.15 	for the commissioner of health care services is not more than the aggregate cost of the 
6.16 	primary executives in the Department of Human Services and the Department of Health 
6.17 	responsible for management of health care services immediately before the effective date 
6.18 	of this chapter.
6.19 	(e) For an employee affected by the transfer of duties required by this chapter, the 
6.20 	seniority accrued by the employee at the employee's former agency transfers to the employee's 
6.21 	new agency.

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

6.23 	Sec. 7. REVISOR INSTRUCTION.
 6.24 	The revisor of statutes, in consultation with staff from the House Research Department; 
6.25 	House Fiscal Analysis; the Office of Senate Counsel, Research, and Fiscal Analysis; and 
6.26 	the respective departments, shall prepare legislation for introduction in the 2023 legislative 
6.27 	session proposing the statutory changes needed to implement the transfers of duties required 
6.28 	by this article.

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

7.1 	ARTICLE 3
7.2 	DEPARTMENT OF FORENSIC SERVICES

7.3 	Section 1. Minnesota Statutes 2021 Supplement, section 15.01, is amended to read:
7.4 	15.01 DEPARTMENTS OF THE STATE.
7.5 	The following agencies are designated as the departments of the state government: the 
7.6 	Department of Administration; the Department of Agriculture; the Department of Commerce; 
7.7 	the Department of Corrections; the Department of Education; the Department of Employment 
7.8 	and Economic Development; the Department of Forensic Services; the Department of 
7.9 	Health; the Department of Human Rights; the Department of Human Services; the 
7.10 	Department of Information Technology Services; the Department of Iron Range Resources 
7.11 	and Rehabilitation; the Department of Labor and Industry; the Department of Management 
7.12 	and Budget; the Department of Military Affairs; the Department of Natural Resources; the 
7.13 	Department of Public Safety; ~~the Department of Human Services;~~ the Department of 
7.14 	Revenue; the Department of Transportation; the Department of Veterans Affairs; and their 
7.15 	successor departments.

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

7.17 	Sec. 2. Minnesota Statutes 2021 Supplement, section 15.06, subdivision 1, is amended to 
7.18 	read:
7.19 		Subdivision 1.Applicability. This section applies to the following departments or 
7.20 	agencies: the Departments of Administration~~,~~; Agriculture~~,~~; Commerce~~,~~; Corrections~~,~~;
7.21 	Education~~,~~; Employment and Economic Development~~,~~; Forensic Services; Health~~,~~; Human 
7.22 	Rights~~,~~; Human Services; Labor and Industry~~,~~; Management and Budget~~,~~; Natural Resources~~,~~;
7.23 	Public Safety~~, Human Services,~~; Revenue~~,~~; Transportation~~,~~; and Veterans Affairs; the 
7.24 	Housing Finance and Pollution Control Agencies; the Office of Commissioner of Iron Range 
7.25 	Resources and Rehabilitation; the Department of Information Technology Services; the 
7.26 	Bureau of Mediation Services; and their successor departments and agencies. The heads of 
7.27 	the foregoing departments or agencies are "commissioners."

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

7.29 	Sec. 3. Minnesota Statutes 2020, section 15A.0815, subdivision 2, is amended to read:
7.30 		Subd. 2.Group I salary limits. The salary for a position listed in this subdivision shall 
7.31 	not exceed 133 percent of the salary of the governor. This limit must be adjusted annually 
7.32 	on January 1. The new limit must equal the limit for the prior year increased by the percentage 
8.1 	increase, if any, in the Consumer Price Index for all urban consumers from October of the 
8.2 	second prior year to October of the immediately prior year. The commissioner of management 
8.3 	and budget must publish the limit on the department's website. This subdivision applies to 
8.4 	the following positions:
8.5 	Commissioner of administration;
8.6 	Commissioner of agriculture;
8.7 	Commissioner of education;
8.8 	Commissioner of commerce;
8.9 	Commissioner of corrections;
8.10 	Commissioner of forensic services;
8.11 	Commissioner of health;
8.12 	Commissioner, Minnesota Office of Higher Education;
8.13 	Commissioner, Housing Finance Agency;
8.14 	Commissioner of human rights;
8.15 	Commissioner of human services;
8.16 	Commissioner of labor and industry;
8.17 	Commissioner of management and budget;
8.18 	Commissioner of natural resources;
8.19 	Commissioner, Pollution Control Agency;
8.20 	Commissioner of public safety;
8.21 	Commissioner of revenue;
8.22 	Commissioner of employment and economic development;
8.23 	Commissioner of transportation; and
8.24 	Commissioner of veterans affairs.

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

9.1 	Sec. 4. Minnesota Statutes 2021 Supplement, section 43A.08, subdivision 1a, is amended 
9.2 	to read:
9.3 		Subd. 1a.Additional unclassified positions. Appointing authorities for the following 
9.4 	agencies may designate additional unclassified positions according to this subdivision: the 
9.5 	Departments of Administration; Agriculture; Commerce; Corrections; Education; 
9.6 	Employment and Economic Development; Explore Minnesota Tourism; Forensic Services;
9.7 	Management and Budget; Health; Human Rights; Human Services; Labor and Industry; 
9.8 	Natural Resources; Public Safety; ~~Human Services;~~ Revenue; Transportation; and Veterans 
9.9 	Affairs; the Housing Finance and Pollution Control Agencies; the State Lottery; the State 
9.10 	Board of Investment; the Office of Administrative Hearings; the Department of Information 
9.11 	Technology Services; the Offices of the Attorney General, Secretary of State, and State 
9.12 	Auditor; the Minnesota State Colleges and Universities; the Minnesota Office of Higher 
9.13 	Education; the Perpich Center for Arts Education; and the Minnesota Zoological Board.
9.14 	A position designated by an appointing authority according to this subdivision must 
9.15 	meet the following standards and criteria:
9.16 	(1) the designation of the position would not be contrary to other law relating specifically 
9.17 	to that agency;
9.18 	(2) the person occupying the position would report directly to the agency head or deputy 
9.19 	agency head and would be designated as part of the agency head's management team;
9.20 	(3) the duties of the position would involve significant discretion and substantial 
9.21 	involvement in the development, interpretation, and implementation of agency policy;
9.22 	(4) the duties of the position would not require primarily personnel, accounting, or other 
9.23 	technical expertise where continuity in the position would be important;
9.24 	(5) there would be a need for the person occupying the position to be accountable to, 
9.25 	loyal to, and compatible with, the governor and the agency head, the employing statutory 
9.26 	board or commission, or the employing constitutional officer;
9.27 	(6) the position would be at the level of division or bureau director or assistant to the 
9.28 	agency head; and
9.29 	(7) the commissioner has approved the designation as being consistent with the standards 
9.30 	and criteria in this subdivision.

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

10.1 	Sec. 5. [246C.01] DEPARTMENT OF FORENSIC SERVICES.
10.2 	(a) The Department of Forensic Services is created. The governor shall appoint the 
10.3 	commissioner of forensic services under section 15.06. The commissioner shall create and 
10.4 	maintain forensic services programs. Forensic services shall be provided in coordination 
10.5 	with counties and other vendors. Forensic services shall include specialized inpatient 
10.6 	programs at secure treatment facilities as defined in sections 253B.02, subdivision 18a, and 
10.7 	253D.02, subdivision 13; community preparation services; consultative services; aftercare 
10.8 	services; community-based services and programs; transition services; nursing home services; 
10.9 	or other services consistent with the mission of the Department of Forensic Services.
10.10 	(b) "Community preparation services" means specialized inpatient or outpatient services 
10.11 	or programs that are operated outside of a secure environment but administered by a secure 
10.12 	treatment facility.

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

10.14 	Sec. 6. [246C.05] TRANSFER OF DUTIES.
10.15 	(a) Section 15.039 applies to the transfer of duties required by this chapter.
10.16 	(b) The commissioner of administration, with the approval of the governor, may issue 
10.17 	reorganization orders under section 16B.37 as necessary to carry out the transfer of duties 
10.18 	required by this chapter. The provision of section 16B.37, subdivision 1, stating that transfers 
10.19 	under section 16B.37 may be made only to an agency that has been in existence for at least 
10.20 	one year does not apply to transfers to an agency created by this chapter.
10.21 	(c) The initial salary for the commissioner of forensic services is the same as the salary 
10.22 	for the commissioner of health. The salary may be changed in the manner specified in section 
10.23 	15A.0815.
10.24 	(d) The commissioner of management and budget must ensure that the aggregate cost 
10.25 	for the commissioner of forensic services is not more than the aggregate cost of the primary 
10.26 	executives in the Department of Human Services responsible for management of forensic 
10.27 	services immediately before the effective date of this chapter.
10.28 	(e) For an employee affected by the transfer of duties required by this chapter, the 
10.29 	seniority accrued by the employee at the employee's former agency transfers to the employee's 
10.30 	new agency.

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

11.1 	Sec. 7. REVISOR INSTRUCTION.
 11.2 	The revisor of statutes, in consultation with staff from the House Research Department; 
11.3 	House Fiscal Analysis; the Office of Senate Counsel, Research, and Fiscal Analysis; and 
11.4 	the respective departments, shall prepare legislation for introduction in the 2022 legislative 
11.5 	session proposing the statutory changes needed to implement the transfers of duties required 
11.6 	by this article.

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

11.8 	ARTICLE 4
11.9 	DEPARTMENT OF DIRECT CARE SERVICES

11.10 	Section 1. Minnesota Statutes 2021 Supplement, section 15.01, is amended to read:
11.11 	15.01 DEPARTMENTS OF THE STATE.
11.12 	The following agencies are designated as the departments of the state government: the 
11.13 	Department of Administration; the Department of Agriculture; the Department of Commerce; 
11.14 	the Department of Corrections; the Department of Direct Care Services; the Department of 
11.15 	Education; the Department of Employment and Economic Development; the Department 
11.16 	of Health; the Department of Human Rights; the Department of Human Services; the 
11.17 	Department of Information Technology Services; the Department of Iron Range Resources 
11.18 	and Rehabilitation; the Department of Labor and Industry; the Department of Management 
11.19 	and Budget; the Department of Military Affairs; the Department of Natural Resources; the 
11.20 	Department of Public Safety; ~~the Department of Human Services;~~ the Department of 
11.21 	Revenue; the Department of Transportation; the Department of Veterans Affairs; and their 
11.22 	successor departments.

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

11.24 	Sec. 2. Minnesota Statutes 2021 Supplement, section 15.06, subdivision 1, is amended to 
11.25 	read:
11.26 		Subdivision 1.Applicability. This section applies to the following departments or 
11.27 	agencies: the Departments of Administration~~,~~; Agriculture~~,~~; Commerce~~,~~; Corrections~~,~~; Direct 
11.28 	Care Services; Education~~,~~; Employment and Economic Development~~,~~; Health, Human 
11.29 	Rights~~,~~;Human Services; Labor and Industry~~,~~; Management and Budget~~,~~; Natural Resources~~,~~;
11.30 	Public Safety~~, Human Services,~~; Revenue~~,~~; Transportation~~,~~; and Veterans Affairs; the 
11.31 	Housing Finance and Pollution Control Agencies; the Office of Commissioner of Iron Range 
11.32 	Resources and Rehabilitation; the Department of Information Technology Services; the 
12.1 	Bureau of Mediation Services; and their successor departments and agencies. The heads of 
12.2 	the foregoing departments or agencies are "commissioners."

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

12.4 	Sec. 3. Minnesota Statutes 2020, section 15A.0815, subdivision 2, is amended to read:
12.5 		Subd. 2.Group I salary limits. The salary for a position listed in this subdivision shall 
12.6 	not exceed 133 percent of the salary of the governor. This limit must be adjusted annually 
12.7 	on January 1. The new limit must equal the limit for the prior year increased by the percentage 
12.8 	increase, if any, in the Consumer Price Index for all urban consumers from October of the 
12.9 	second prior year to October of the immediately prior year. The commissioner of management 
12.10 	and budget must publish the limit on the department's website. This subdivision applies to 
12.11 	the following positions:
12.12 	Commissioner of administration;
12.13 	Commissioner of agriculture;
12.14 	Commissioner of education;
12.15 	Commissioner of commerce;
12.16 	Commissioner of corrections;
12.17 	Commissioner of direct care services;
12.18 	Commissioner of health;
12.19 	Commissioner, Minnesota Office of Higher Education;
12.20 	Commissioner, Housing Finance Agency;
12.21 	Commissioner of human rights;
12.22 	Commissioner of human services;
12.23 	Commissioner of labor and industry;
12.24 	Commissioner of management and budget;
12.25 	Commissioner of natural resources;
12.26 	Commissioner, Pollution Control Agency;
12.27 	Commissioner of public safety;
12.28 	Commissioner of revenue;
12.29 	Commissioner of employment and economic development;
13.1 	Commissioner of transportation; and
13.2 	Commissioner of veterans affairs.

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

13.4 	Sec. 4. Minnesota Statutes 2021 Supplement, section 43A.08, subdivision 1a, is amended 
13.5 	to read:
13.6 		Subd. 1a.Additional unclassified positions. Appointing authorities for the following 
13.7 	agencies may designate additional unclassified positions according to this subdivision: the 
13.8 	Departments of Administration; Agriculture; Commerce; Corrections; Direct Care Services; 
13.9 	Education; Employment and Economic Development; Explore Minnesota Tourism; 
13.10 	Management and Budget; Health; Human Rights; Human Services; Labor and Industry; 
13.11 	Natural Resources; Public Safety; ~~Human Services;~~ Revenue; Transportation; and Veterans 
13.12 	Affairs; the Housing Finance and Pollution Control Agencies; the State Lottery; the State 
13.13 	Board of Investment; the Office of Administrative Hearings; the Department of Information 
13.14 	Technology Services; the Offices of the Attorney General, Secretary of State, and State 
13.15 	Auditor; the Minnesota State Colleges and Universities; the Minnesota Office of Higher 
13.16 	Education; the Perpich Center for Arts Education; and the Minnesota Zoological Board.
13.17 	A position designated by an appointing authority according to this subdivision must 
13.18 	meet the following standards and criteria:
13.19 	(1) the designation of the position would not be contrary to other law relating specifically 
13.20 	to that agency;
13.21 	(2) the person occupying the position would report directly to the agency head or deputy 
13.22 	agency head and would be designated as part of the agency head's management team;
13.23 	(3) the duties of the position would involve significant discretion and substantial 
13.24 	involvement in the development, interpretation, and implementation of agency policy;
13.25 	(4) the duties of the position would not require primarily personnel, accounting, or other 
13.26 	technical expertise where continuity in the position would be important;
13.27 	(5) there would be a need for the person occupying the position to be accountable to, 
13.28 	loyal to, and compatible with, the governor and the agency head, the employing statutory 
13.29 	board or commission, or the employing constitutional officer;
13.30 	(6) the position would be at the level of division or bureau director or assistant to the 
13.31 	agency head; and
14.1 	(7) the commissioner has approved the designation as being consistent with the standards 
14.2 	and criteria in this subdivision.

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

14.4 	Sec. 5. [246D.01] DEPARTMENT OF DIRECT CARE SERVICES.
14.5 	The Department of Direct Care Services is created. The governor shall appoint the 
14.6 	commissioner of direct care services under section 15.06. The commissioner shall develop 
14.7 	and maintain direct care services in a manner consistent with sections 245.461 and 245.487 
14.8 	and chapters 246, 252, 253, 254A, and 254B. Direct care services shall be provided in 
14.9 	coordination with counties and other vendors. Direct care services shall include regional 
14.10 	treatment centers, enterprise services, community-based services and programs, community 
14.11 	preparation services, consultative services, and other services consistent with the mission 
14.12 	of the Department of Direct Care Services. These services shall include crisis beds, waivered 
14.13 	homes, intermediate care facilities, and day training and habilitation facilities. The 
14.14 	administrative structure of direct care services must be statewide in character. The direct 
14.15 	care services staff may deliver services at any location throughout the state.

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

14.17 	Sec. 6. [246D.05] TRANSFER OF DUTIES.
14.18 	(a) Section 15.039 applies to the transfer of duties required by this chapter.
14.19 	(b) The commissioner of administration, with the approval of the governor, may issue 
14.20 	reorganization orders under section 16B.37 as necessary to carry out the transfer of duties 
14.21 	required by this chapter. The provision of section 16B.37, subdivision 1, stating that transfers 
14.22 	under section 16B.37 may be made only to an agency that has been in existence for at least 
14.23 	one year does not apply to transfers to an agency created by this chapter.
14.24 	(c) The initial salary for the commissioner of direct care services is the same as the salary 
14.25 	for the commissioner of health. The salary may be changed in the manner specified in section 
14.26 	15A.0815.
14.27 	(d) The commissioner of management and budget must ensure that the aggregate cost 
14.28 	for the commissioner of direct care services is not more than the aggregate cost of the 
14.29 	primary executives in the Department of Human Services responsible for management of 
14.30 	direct care services immediately before the effective date of this chapter.
15.1 	(e) For an employee affected by the transfer of duties required by this chapter, the 
15.2 	seniority accrued by the employee at the employee's former agency transfers to the employee's 
15.3 	new agency.

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

15.5 	Sec. 7. REVISOR INSTRUCTION.
 15.6 	The revisor of statutes, in consultation with staff from the House Research Department; 
15.7 	House Fiscal Analysis; the Office of Senate Counsel, Research, and Fiscal Analysis; and 
15.8 	the respective departments, shall prepare legislation for introduction in the 2023 legislative 
15.9 	session proposing the statutory changes needed to implement the transfers of duties required 
15.10 	by this article.

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

15.12 	ARTICLE 5
15.13 	OFFICE OF ELIGIBILITY SERVICES

15.14 	Section 1. [256U.01] OFFICE OF ELIGIBILITY SERVICES.
15.15 		Subdivision 1.Creation. A state Office of Eligibility Services is created.
15.16 		Subd. 2.Director. (a) The office shall be under the direction of a director who shall be 
15.17 	appointed by the governor, with the advice and consent of the senate, for a term ending on 
15.18 	June 30 of the sixth calendar year after appointment. Senate confirmation of the director 
15.19 	shall be as provided by section 15.066. The director shall appoint deputies to serve in the 
15.20 	office as necessary to fulfill the duties of the office. The director may delegate to a 
15.21 	subordinate employee the exercise of a specified statutory power or duty, subject to the 
15.22 	control of the director. Every delegation must be by written order filed with the secretary 
15.23 	of state.
15.24 	(b) The director shall be in the unclassified service, but may be removed only for cause.
15.25 		Subd. 3.Duties. (a) The director of eligibility services shall determine initial and ongoing 
15.26 	client eligibility, and act on client appeals, for:
15.27 	(1) social service and income assistance programs administered under chapters 119B, 
15.28 	256, 256D, 256E, 256F, 256I, 256J, 256K, 256N, 256P, 256R, and 256S;
15.29 	(2) mental health and chemical dependency programs administered under chapters 245, 
15.30 	253C, 254A, and 254B;
15.31 	(3) health care programs administered under chapters 256, 256B, and 256L;
16.1 	(4) programs for persons with disabilities administered under chapters 245D, 248, 252, 
16.2 	256C, and 256Q;
16.3 	(5) student higher education grant, loan, and assistance programs administered under 
16.4 	chapter 136A;
16.5 	(6) student prekindergarten through grade 12 scholarship, nutrition, and assistance 
16.6 	programs administered under chapters 119A and 120A to 127A; and
16.7 	(7) housing assistance programs administered under chapters 462A and 462C.
16.8 	(b) The director of eligibility services shall work with the commissioners of the relevant 
16.9 	state agencies and directors of relevant local agencies to coordinate eligibility determination 
16.10 	for the programs listed in paragraph (a) with program operations, and to streamline, simplify, 
16.11 	and consolidate the application and renewal process for persons seeking or receiving 
16.12 	assistance through the programs.

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

16.14 	Sec. 2. [256U.05] TRANSFER OF DUTIES.
16.15 	(a) Section 15.039 applies to the transfer of duties required by this chapter.
16.16 	(b) The commissioner of administration, with approval of the governor, may issue 
16.17 	reorganization orders under section 16B.37 as necessary to carry out the transfer of duties 
16.18 	required by this chapter. The provision of section 16B.37, subdivision 1, stating that transfers 
16.19 	under that section may be made only to an agency that has been in existence for at least one 
16.20 	year does not apply to transfers to an agency created by this chapter.
16.21 	(c) The commissioner of management and budget must ensure that the aggregate cost 
16.22 	for the director of the Office of Eligibility Services is not more than the aggregate cost of 
16.23 	the primary executives in state agencies responsible for client eligibility determinations and 
16.24 	client appeals immediately before the effective date of this chapter.
16.25 	(d) For an employee affected by the transfer of duties required by this chapter, the 
16.26 	seniority accrued by the employee at the employee's former agency transfers to the employee's 
16.27 	new agency.

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

16.29 	Sec. 3. REVISOR INSTRUCTION.
 16.30 	The revisor of statutes, in consultation with staff from the House Research Department; 
16.31 	House Fiscal Analysis; the Office of Senate Counsel, Research, and Fiscal Analysis; and 
17.1 	the respective departments, shall prepare legislation for introduction in the 2023 legislative 
17.2 	session proposing the statutory changes needed to implement the transfers of duties required 
17.3 	by this article.

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

17.5 	ARTICLE 6
17.6 	TRANSFER OF DUTIES

17.7 	Section 1. [60A.034] DUTIES TRANSFERRED FROM ANOTHER AGENCY.
17.8 	(a) The following powers and duties of the Department of Health are transferred to the 
17.9 	Department of Commerce under section 15.039:
17.10 	(1) regulation of health maintenance organizations and community integrated service 
17.11 	networks, including regulation of enrollee appeal and complaint resolution processes;
17.12 	(2) regulation of county-based purchasing plans and utilization review organizations;
17.13 	(3) certification of health care provider network adequacy in health plans; and
17.14 	(4) health plan quality assurance and performance measurement activities.
17.15 	(b) For an employee affected by the transfer of duties required by this section, the 
17.16 	seniority accrued by the employee at the employee's former agency transfers to the employee's 
17.17 	new agency.

17.18 	Sec. 2. [144A.491] DUTIES TRANSFERRED FROM ANOTHER AGENCY.
17.19 	(a) The powers and duties of the Department of Human Services with respect to programs 
17.20 	and facilities licensed or regulated under chapter 245A, 245D, or 245F, are transferred to 
17.21 	the Department of Health under section 15.039.
17.22 	(b) For an employee affected by the transfer of duties required by this section, the 
17.23 	seniority accrued by the employee at the employee's former agency transfers to the employee's 
17.24 	new agency.

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

17.26 	Sec. 3. Minnesota Statutes 2020, section 299A.015, is amended to read:
17.27 	299A.015 DUTIES TRANSFERRED FROM OTHER AGENCY.
17.28 	(a) The powers and duties of the Department of Children, Families, and Learning with 
17.29 	respect to the Office of Drug Policy and Violence Prevention and Community Advisory 
18.1 	Violence Prevention Council under Minnesota Statutes 1998, sections 119A.25, 119A.26, 
18.2 	119A.27, 119A.28, 119A.29, 119A.31, 119A.32, 119A.33, and 119A.34, are transferred to 
18.3 	the Department of Public Safety under section 15.039.
18.4 	(b) The powers and duties of the Department of Human Services with respect to the 
18.5 	Department of Human Services Background Study Act under chapter 245C, are transferred 
18.6 	to the Department of Public Safety under section 15.039.
18.7 	(c) The powers and duties of the Department of Health with respect to background 
18.8 	studies required by sections 144.058, 144A.476, 144A.62, 144A.754, 145A.061, and 157.17, 
18.9 	are transferred to the Department of Public Safety under section 15.039.
18.10 	(d) For the purpose of completing background studies, the commissioner of public safety 
18.11 	shall have authority to access:
18.12 	(1) maltreatment data maintained by local welfare agencies or agencies responsible for 
18.13 	assessing or investigating reports under section 626.556; and
18.14 	(2) names of substantiated perpetrators related to maltreatment of vulnerable adults 
18.15 	maintained by the commissioner of human services under section 626.557.
18.16 	(e) For employees affected by the transfer of duties required by paragraphs (b) and (c), 
18.17 	the seniority accrued by the employee at the employee's former agency transfers to the 
18.18 	employee's new agency.

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

18.20 	Sec. 4. DIRECTION TO COMMISSIONERS OF HUMAN SERVICES AND 
18.21 	EMPLOYMENT AND ECONOMIC DEVELOPMENT.
 18.22 	The commissioners of human services and employment and economic development, in 
18.23 	consultation with counties and stakeholders, shall: (1) prepare legislation for the 2023 
18.24 	legislative session to transfer the Minnesota family investment program under Minnesota 
18.25 	Statutes, chapter 256J, except for the child-only TANF program under Minnesota Statutes, 
18.26 	section 256J.88, from the Department of Human Services to the Department of Employment 
18.27 	and Economic Development; and (2) report to the chairs and ranking minority members of 
18.28 	the legislative committees with jurisdiction over human services policy and finance and 
18.29 	employment and economic development policy and finance regarding the proposed transfer 
18.30 	of the Minnesota family investment program by February 1, 2023.

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

19.1 	Sec. 5. REVISOR INSTRUCTION.
 19.2 	The revisor of statutes, in consultation with staff from the House Research Department; 
19.3 	House Fiscal Analysis; the Office of Senate Counsel, Research, and Fiscal Analysis; and 
19.4 	the respective departments, shall prepare legislation for introduction in the 2023 legislative 
19.5 	session proposing the statutory changes needed to implement the transfers of duties required 
19.6 	by this article.

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