Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

Office of the Revisor of Statutes

254B.03 RESPONSIBILITY TO PROVIDE CHEMICAL DEPENDENCY TREATMENT.
    Subdivision 1. Local agency duties. (a) Every local agency shall provide chemical
dependency services to persons residing within its jurisdiction who meet criteria established by
the commissioner for placement in a chemical dependency residential or nonresidential treatment
service. Chemical dependency money must be administered by the local agencies according to
law and rules adopted by the commissioner under sections 14.001 to 14.69.
    (b) In order to contain costs, the county board shall, with the approval of the commissioner
of human services, select eligible vendors of chemical dependency services who can provide
economical and appropriate treatment. Unless the local agency is a social services department
directly administered by a county or human services board, the local agency shall not be an
eligible vendor under section 254B.05. The commissioner may approve proposals from county
boards to provide services in an economical manner or to control utilization, with safeguards
to ensure that necessary services are provided. If a county implements a demonstration or
experimental medical services funding plan, the commissioner shall transfer the money as
appropriate. If a county selects a vendor located in another state, the county shall ensure that the
vendor is in compliance with the rules governing licensure of programs located in the state.
    (c) A culturally specific vendor that provides assessments under a variance under Minnesota
Rules, part 9530.6610, shall be allowed to provide assessment services to persons not covered
by the variance.
    Subd. 2. Chemical dependency fund payment. (a) Payment from the chemical dependency
fund is limited to payments for services other than detoxification that, if located outside of
federally recognized tribal lands, would be required to be licensed by the commissioner as a
chemical dependency treatment or rehabilitation program under sections 245A.01 to 245A.16,
and services other than detoxification provided in another state that would be required to be
licensed as a chemical dependency program if the program were in the state. Out of state vendors
must also provide the commissioner with assurances that the program complies substantially with
state licensing requirements and possesses all licenses and certifications required by the host
state to provide chemical dependency treatment. Except for chemical dependency transitional
rehabilitation programs, vendors receiving payments from the chemical dependency fund must
not require co-payment from a recipient of benefits for services provided under this subdivision.
Payment from the chemical dependency fund shall be made for necessary room and board costs
provided by vendors certified according to section 254B.05, or in a community hospital licensed
by the commissioner of health according to sections 144.50 to 144.56 to a client who is:
(1) determined to meet the criteria for placement in a residential chemical dependency
treatment program according to rules adopted under section 254A.03, subdivision 3; and
(2) concurrently receiving a chemical dependency treatment service in a program licensed by
the commissioner and reimbursed by the chemical dependency fund.
(b) A county may, from its own resources, provide chemical dependency services for which
state payments are not made. A county may elect to use the same invoice procedures and obtain
the same state payment services as are used for chemical dependency services for which state
payments are made under this section if county payments are made to the state in advance of state
payments to vendors. When a county uses the state system for payment, the commissioner shall
make monthly billings to the county using the most recent available information to determine the
anticipated services for which payments will be made in the coming month. Adjustment of any
overestimate or underestimate based on actual expenditures shall be made by the state agency by
adjusting the estimate for any succeeding month.
(c) The commissioner shall coordinate chemical dependency services and determine whether
there is a need for any proposed expansion of chemical dependency treatment services. The
commissioner shall deny vendor certification to any provider that has not received prior approval
from the commissioner for the creation of new programs or the expansion of existing program
capacity. The commissioner shall consider the provider's capacity to obtain clients from outside
the state based on plans, agreements, and previous utilization history, when determining the need
for new treatment services.
    Subd. 3. Local agencies to pay state for county share. Local agencies shall pay the state
for the county share of the services authorized by the local agency.
    Subd. 4. Division of costs. Except for services provided by a county under section 254B.09,
subdivision 1
, or services provided under section 256B.69 or 256D.03, subdivision 4, paragraph
(b), the county shall, out of local money, pay the state for 15 percent of the cost of chemical
dependency services, including those services provided to persons eligible for medical assistance
under chapter 256B and general assistance medical care under chapter 256D. Counties may use
the indigent hospitalization levy for treatment and hospital payments made under this section.
Fifteen percent of any state collections from private or third-party pay, less 15 percent of the
cost of payment and collections, must be distributed to the county that paid for a portion of the
treatment under this section. If all funds allocated according to section 254B.02 are exhausted
by a county and the county has met or exceeded the base level of expenditures under section
254B.02, subdivision 3, the county shall pay the state for 15 percent of the costs paid by the
state under this section. The commissioner may refuse to pay state funds for services to persons
not eligible under section 254B.04, subdivision 1, if the county financially responsible for the
persons has exhausted its allocation.
    Subd. 5. Rules; appeal. The commissioner shall adopt rules as necessary to implement Laws
1986, chapter 394, sections 8 to 20. The commissioner shall ensure that the rules are effective on
July 1, 1987. The commissioner shall establish an appeals process for use by recipients when
services certified by the county are disputed. The commissioner shall adopt rules and standards
for the appeal process to assure adequate redress for persons referred to inappropriate services.
    Subd. 6.[Repealed, 1989 c 155 s 5]
    Subd. 7. Commissioner review; complaints. The commissioner shall:
(1) provide training and assistance to counties on procedures for processing placements
and making payments;
(2) visit facilities and review records as necessary to determine compliance with procedures
established by law and rule;
(3) take complaints from vendors and recipients and investigate county placement activities
as needed to determine compliance with law and rule.
Counties and vendors shall make regular reports as required by the commissioner to facilitate
commissioner review.
    Subd. 8.[Repealed, 1997 c 7 art 2 s 67]
History: 1986 c 394 s 10; 1Sp1986 c 3 art 2 s 2; 1987 c 299 s 8-12; 1987 c 333 s 22; 1989
c 209 art 2 s 1; 1989 c 282 art 2 s 104,105; 1990 c 422 s 10; 1990 c 568 art 2 s 58; 1997 c
203 art 7 s 17; 1Sp1997 c 5 s 21; 1999 c 245 art 5 s 17; 1Sp2001 c 9 art 3 s 5; 2002 c 379 art
1 s 113; 2007 c 147 art 11 s 14,15

Official Publication of the State of Minnesota
Revisor of Statutes