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 
1.5 	of Health Care Services, Department of Forensic Services, Department of 
1.6 	Direct Care Services, and Office of Eligibility Services; transferring duties from 
1.7 	the Department of Human Services and other state agencies to the new state 
1.8 	agencies and office; transferring other duties among state agencies; requiring a 
1.9 	report;amending Minnesota Statutes 2014, sections 15.01; 15.06, subdivision 1; 
1.10 	15A.0815, subdivision 2; 43A.08, subdivision 1a; 299A.015; proposing coding 
1.11 	for new law in Minnesota Statutes, chapters 60A; 144A; 256; proposing coding 
1.12 	for new law as Minnesota Statutes, chapters 246C; 246D; 256R; 256S.
1.13 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

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

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

2.21 	EFFECTIVE DATE. This section is effective July 1, 2017.

2.22 	ARTICLE 2
2.23 	DEPARTMENT OF HEALTH CARE SERVICES

2.24 	Section 1. Minnesota Statutes 2014, section 15.01, is amended to read:
2.25 	15.01 DEPARTMENTS OF THE STATE.
2.26 	The following agencies are designated as the departments of the state government: 
2.27 	the Department of Administration; the Department of Agriculture; the Department of 
2.28 	Commerce; the Department of Corrections; the Department of Education; the Department 
2.29 	of Employment and Economic Development; the Department of Health; the Department 
2.30 	of Health Care Services; the Department of Human Rights; the Department of Human 
2.31 	Services; the Department of Labor and Industry; the Department of Management and 
2.32 	Budget; the Department of Military Affairs; the Department of Natural Resources; the 
2.33 	Department of Public Safety; ~~the Department of Human Services;~~ the Department of 
3.1 	Revenue; the Department of Transportation; the Department of Veterans Affairs; and 
3.2 	their successor departments.

3.3 	EFFECTIVE DATE. This section is effective July 1, 2017.

3.4 	Sec. 2. Minnesota Statutes 2014, section 15.06, subdivision 1, is amended to read:
3.5 		Subdivision 1.Applicability. This section applies to the following departments or 
3.6 	agencies: the Departments of Administration~~,~~; Agriculture~~,~~; Commerce~~,~~; Corrections~~,~~;
3.7 	Education~~,~~; Employment and Economic Development~~,~~; Health~~,~~; Health Care Services; 
3.8 	Human Rights~~,~~; Human Services; Labor and Industry~~,~~; Management and Budget~~,~~; Natural 
3.9 	Resources~~,~~; Public Safety~~, Human Services,~~; Revenue~~,~~; Transportation~~,~~; and Veterans 
3.10 	Affairs; the Housing Finance and Pollution Control Agencies; the Office of Commissioner 
3.11 	of Iron Range Resources and Rehabilitation; the Office of MN.IT Services; the Bureau 
3.12 	of Mediation Services; and their successor departments and agencies. The heads of the 
3.13 	foregoing departments or agencies are "commissioners."

3.14 	EFFECTIVE DATE. This section is effective July 1, 2017.

3.15 	Sec. 3. Minnesota Statutes 2014, section 15A.0815, subdivision 2, is amended to read:
3.16 		Subd. 2.Group I salary limits. The salary for a position listed in this subdivision 
3.17 	shall not exceed 133 percent of the salary of the governor. This limit must be adjusted 
3.18 	annually on January 1. The new limit must equal the limit for the prior year increased 
3.19 	by the percentage increase, if any, in the Consumer Price Index for all urban consumers 
3.20 	from October of the second prior year to October of the immediately prior year. The 
3.21 	commissioner of management and budget must publish the limit on the department's Web 
3.22 	site. This subdivision applies to the following positions:
3.23 	Commissioner of administration;
3.24 	Commissioner of agriculture;
3.25 	Commissioner of education;
3.26 	Commissioner of commerce;
3.27 	Commissioner of corrections;
3.28 	Commissioner of health;
3.29 	Commissioner of health care services;
3.30 	Commissioner, Minnesota Office of Higher Education;
3.31 	Commissioner, Housing Finance Agency;
3.32 	Commissioner of human rights;
3.33 	Commissioner of human services;
4.1 	Commissioner of labor and industry;
4.2 	Commissioner of management and budget;
4.3 	Commissioner of natural resources;
4.4 	Commissioner, Pollution Control Agency;
4.5 	Executive director, Public Employees Retirement Association;
4.6 	Commissioner of public safety;
4.7 	Commissioner of revenue;
4.8 	Executive director, State Retirement System;
4.9 	Executive director, Teachers Retirement Association;
4.10 	Commissioner of employment and economic development;
4.11 	Commissioner of transportation; and
4.12 	Commissioner of veterans affairs.

4.13 	EFFECTIVE DATE. This section is effective July 1, 2017.

4.14 	Sec. 4. Minnesota Statutes 2014, section 43A.08, subdivision 1a, is amended to read:
4.15 		Subd. 1a.Additional unclassified positions. Appointing authorities for the 
4.16 	following agencies may designate additional unclassified positions according to this 
4.17 	subdivision: the Departments of Administration; Agriculture; Commerce; Corrections; 
4.18 	Education; Employment and Economic Development; Explore Minnesota Tourism; 
4.19 	Management and Budget; Health; Health Care Services; Human Rights; Human Services; 
4.20 	Labor and Industry; Natural Resources; Public Safety; ~~Human Services;~~ Revenue; 
4.21 	Transportation; and Veterans Affairs; the Housing Finance and Pollution Control Agencies; 
4.22 	the State Lottery; the State Board of Investment; the Office of Administrative Hearings; the 
4.23 	Office of MN.IT Services; the Offices of the Attorney General, Secretary of State, and State 
4.24 	Auditor; the Minnesota State Colleges and Universities; the Minnesota Office of Higher 
4.25 	Education; the Perpich Center for Arts Education; and the Minnesota Zoological Board.
4.26 	A position designated by an appointing authority according to this subdivision must 
4.27 	meet the following standards and criteria:
4.28 	(1) the designation of the position would not be contrary to other law relating 
4.29 	specifically to that agency;
4.30 	(2) the person occupying the position would report directly to the agency head or 
4.31 	deputy agency head and would be designated as part of the agency head's management 
4.32 	team;
4.33 	(3) the duties of the position would involve significant discretion and substantial 
4.34 	involvement in the development, interpretation, and implementation of agency policy;
5.1 	(4) the duties of the position would not require primarily personnel, accounting, or 
5.2 	other technical expertise where continuity in the position would be important;
5.3 	(5) there would be a need for the person occupying the position to be accountable to, 
5.4 	loyal to, and compatible with, the governor and the agency head, the employing statutory 
5.5 	board or commission, or the employing constitutional officer;
5.6 	(6) the position would be at the level of division or bureau director or assistant 
5.7 	to the agency head; and
5.8 	(7) the commissioner has approved the designation as being consistent with the 
5.9 	standards and criteria in this subdivision.

5.10 	EFFECTIVE DATE. This section is effective July 1, 2017.

5.11 	Sec. 5. [256R.01] DEPARTMENT OF HEALTH CARE SERVICES.
5.12 	The Department of Health Care Services is created. The governor shall appoint 
5.13 	the commissioner of health care services under section 15.06. The commissioner shall 
5.14 	administer:
5.15 	(1) the medical assistance program under chapters 256 and 256B;
5.16 	(2) the MinnesotaCare program under chapter 256L;
5.17 	(3) mental health and chemical dependency services under chapters 245, 253C, 
5.18 	254A, and 254B;
5.19 	(4) services for the elderly under chapters 256 and 256B;
5.20 	(5) services for persons with disabilities under chapters 245D, 248, 252, 256C, 
5.21 	and 256Q; and
5.22 	(6) health care quality, health care analysis, health economics, and related data 
5.23 	collection initiatives under chapters 62J, 62U, and 144.

5.24 	EFFECTIVE DATE. This section is effective July 1, 2017.

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

6.12 	EFFECTIVE DATE. This section is effective July 1, 2017.

6.13 	Sec. 7. REVISOR'S INSTRUCTION.
 6.14 	The revisor of statutes, in consultation with staff from the House Research 
6.15 	Department; House Fiscal Analysis; the Office of Senate Counsel, Research, and Fiscal 
6.16 	Analysis; and the respective departments shall prepare legislation for introduction in the 
6.17 	2017 legislative session proposing the statutory changes needed to implement the transfers 
6.18 	of duties required by this article.

6.19 	EFFECTIVE DATE. This section is effective July 1, 2016.

6.20 	ARTICLE 3
6.21 	DEPARTMENT OF FORENSIC SERVICES

6.22 	Section 1. Minnesota Statutes 2014, section 15.01, is amended to read:
6.23 	15.01 DEPARTMENTS OF THE STATE.
6.24 	The following agencies are designated as the departments of the state government: 
6.25 	the Department of Administration; the Department of Agriculture; the Department of 
6.26 	Commerce; the Department of Corrections; the Department of Education; the Department 
6.27 	of Employment and Economic Development; the Department of Forensic Services; the 
6.28 	Department of Health; the Department of Human Rights; the Department of Human 
6.29 	Services; the Department of Labor and Industry; the Department of Management and 
6.30 	Budget; the Department of Military Affairs; the Department of Natural Resources; the 
6.31 	Department of Public Safety; ~~the Department of Human Services;~~ the Department of 
7.1 	Revenue; the Department of Transportation; the Department of Veterans Affairs; and 
7.2 	their successor departments.

7.3 	EFFECTIVE DATE. This section is effective July 1, 2017.

7.4 	Sec. 2. Minnesota Statutes 2014, section 15.06, subdivision 1, is amended to read:
7.5 		Subdivision 1.Applicability. This section applies to the following departments or 
7.6 	agencies: the Departments of Administration~~,~~; Agriculture~~,~~; Commerce~~,~~; Corrections~~,~~;
7.7 	Education~~,~~; Employment and Economic Development~~,~~; Forensic Services; Health~~,~~;
7.8 	Human Rights~~,~~; Human Services; Labor and Industry~~,~~; Management and Budget~~,~~; Natural 
7.9 	Resources~~,~~; Public Safety~~, Human Services,~~; Revenue~~,~~; Transportation~~,~~; and Veterans 
7.10 	Affairs; the Housing Finance and Pollution Control Agencies; the Office of Commissioner 
7.11 	of Iron Range Resources and Rehabilitation; the Office of MN.IT Services; the Bureau 
7.12 	of Mediation Services; and their successor departments and agencies. The heads of the 
7.13 	foregoing departments or agencies are "commissioners."

7.14 	EFFECTIVE DATE. This section is effective July 1, 2017.

7.15 	Sec. 3. Minnesota Statutes 2014, section 15A.0815, subdivision 2, is amended to read:
7.16 		Subd. 2.Group I salary limits. The salary for a position listed in this subdivision 
7.17 	shall not exceed 133 percent of the salary of the governor. This limit must be adjusted 
7.18 	annually on January 1. The new limit must equal the limit for the prior year increased 
7.19 	by the percentage increase, if any, in the Consumer Price Index for all urban consumers 
7.20 	from October of the second prior year to October of the immediately prior year. The 
7.21 	commissioner of management and budget must publish the limit on the department's Web 
7.22 	site. This subdivision applies to the following positions:
7.23 	Commissioner of administration;
7.24 	Commissioner of agriculture;
7.25 	Commissioner of education;
7.26 	Commissioner of commerce;
7.27 	Commissioner of corrections;
7.28 	Commissioner of forensic services;
7.29 	Commissioner of health;
7.30 	Commissioner, Minnesota Office of Higher Education;
7.31 	Commissioner, Housing Finance Agency;
7.32 	Commissioner of human rights;
7.33 	Commissioner of human services;
8.1 	Commissioner of labor and industry;
8.2 	Commissioner of management and budget;
8.3 	Commissioner of natural resources;
8.4 	Commissioner, Pollution Control Agency;
8.5 	Executive director, Public Employees Retirement Association;
8.6 	Commissioner of public safety;
8.7 	Commissioner of revenue;
8.8 	Executive director, State Retirement System;
8.9 	Executive director, Teachers Retirement Association;
8.10 	Commissioner of employment and economic development;
8.11 	Commissioner of transportation; and
8.12 	Commissioner of veterans affairs.

8.13 	EFFECTIVE DATE. This section is effective July 1, 2017.

8.14 	Sec. 4. Minnesota Statutes 2014, section 43A.08, subdivision 1a, is amended to read:
8.15 		Subd. 1a.Additional unclassified positions. Appointing authorities for the 
8.16 	following agencies may designate additional unclassified positions according to this 
8.17 	subdivision: the Departments of Administration; Agriculture; Commerce; Corrections; 
8.18 	Education; Employment and Economic Development; Explore Minnesota Tourism; 
8.19 	Forensic Services; Management and Budget; Health; Human Rights; Human Services; 
8.20 	Labor and Industry; Natural Resources; Public Safety; ~~Human Services;~~ Revenue; 
8.21 	Transportation; and Veterans Affairs; the Housing Finance and Pollution Control Agencies; 
8.22 	the State Lottery; the State Board of Investment; the Office of Administrative Hearings; the 
8.23 	Office of MN.IT Services; the Offices of the Attorney General, Secretary of State, and State 
8.24 	Auditor; the Minnesota State Colleges and Universities; the Minnesota Office of Higher 
8.25 	Education; the Perpich Center for Arts Education; and the Minnesota Zoological Board.
8.26 	A position designated by an appointing authority according to this subdivision must 
8.27 	meet the following standards and criteria:
8.28 	(1) the designation of the position would not be contrary to other law relating 
8.29 	specifically to that agency;
8.30 	(2) the person occupying the position would report directly to the agency head or 
8.31 	deputy agency head and would be designated as part of the agency head's management 
8.32 	team;
8.33 	(3) the duties of the position would involve significant discretion and substantial 
8.34 	involvement in the development, interpretation, and implementation of agency policy;
9.1 	(4) the duties of the position would not require primarily personnel, accounting, or 
9.2 	other technical expertise where continuity in the position would be important;
9.3 	(5) there would be a need for the person occupying the position to be accountable to, 
9.4 	loyal to, and compatible with, the governor and the agency head, the employing statutory 
9.5 	board or commission, or the employing constitutional officer;
9.6 	(6) the position would be at the level of division or bureau director or assistant 
9.7 	to the agency head; and
9.8 	(7) the commissioner has approved the designation as being consistent with the 
9.9 	standards and criteria in this subdivision.

9.10 	EFFECTIVE DATE. This section is effective July 1, 2017.

9.11 	Sec. 5. [246C.01] DEPARTMENT OF FORENSIC SERVICES.
9.12 	(a) The Department of Forensic Services is created. The governor shall appoint the 
9.13 	commissioner of forensic services under section 15.06. The commissioner shall create and 
9.14 	maintain forensic services programs. Forensic services shall be provided in coordination 
9.15 	with counties and other vendors. Forensic services shall include specialized inpatient 
9.16 	programs at secure treatment facilities as defined in sections 253B.02, subdivision 18a, 
9.17 	and 253D.02, subdivision 13; community preparation services; consultative services; 
9.18 	aftercare services; community-based services and programs; transition services; nursing 
9.19 	home services; or other services consistent with the mission of the Department of Forensic 
9.20 	Services.
9.21 	(b) "Community preparation services" means specialized inpatient or outpatient 
9.22 	services or programs that are operated outside of a secure environment but administered 
9.23 	by a secure treatment facility.

9.24 	EFFECTIVE DATE. This section is effective July 1, 2017.

9.25 	Sec. 6. [246C.05] TRANSFER OF DUTIES.
9.26 	(a) Section 15.039 applies to the transfer of duties required by this chapter.
9.27 	(b) The commissioner of administration, with the approval of the governor, may 
9.28 	issue reorganization orders under section 16B.37 as necessary to carry out the transfer of 
9.29 	duties required by this chapter. The provision of section 16B.37, subdivision 1, stating that 
9.30 	transfers under section 16B.37 may be made only to an agency that has been in existence 
9.31 	for at least one year does not apply to transfers to an agency created by this chapter.
10.1 	(c) The initial salary for the commissioner of forensic services is the same as the 
10.2 	salary for the commissioner of health. The salary may be changed in the manner specified 
10.3 	in section 15A.0815.
10.4 	(d) The commissioner of management and budget must ensure that the aggregate 
10.5 	cost for the commissioner of forensic services is not more than the aggregate cost of the 
10.6 	primary executives in the Department of Human Services responsible for management of 
10.7 	forensic services immediately before the effective date of this chapter.
10.8 	(e) For an employee affected by the transfer of duties required by this chapter, 
10.9 	the seniority accrued by the employee at the employee's former agency transfers to the 
10.10 	employee's new agency.

10.11 	EFFECTIVE DATE. This section is effective July 1, 2017.

10.12 	Sec. 7. REVISOR'S INSTRUCTION.
 10.13 	The revisor of statutes, in consultation with staff from the House Research 
10.14 	Department; House Fiscal Analysis; the Office of Senate Counsel, Research, and Fiscal 
10.15 	Analysis; and the respective departments shall prepare legislation for introduction in the 
10.16 	2017 legislative session proposing the statutory changes needed to implement the transfers 
10.17 	of duties required by this article.

10.18 	EFFECTIVE DATE. This section is effective July 1, 2016.

10.19 	ARTICLE 4
10.20 	DEPARTMENT OF DIRECT CARE SERVICES

10.21 	Section 1. Minnesota Statutes 2014, section 15.01, is amended to read:
10.22 	15.01 DEPARTMENTS OF THE STATE.
10.23 	The following agencies are designated as the departments of the state government: 
10.24 	the Department of Administration; the Department of Agriculture; the Department of 
10.25 	Commerce; the Department of Corrections; the Department of Direct Care Services; the 
10.26 	Department of Education; the Department of Employment and Economic Development; 
10.27 	the Department of Health; the Department of Human Rights; the Department of Human 
10.28 	Services;  the Department of Labor and Industry; the Department of Management and 
10.29 	Budget; the Department of Military Affairs; the Department of Natural Resources; the 
10.30 	Department of Public Safety; ~~the Department of Human Services;~~ the Department of 
10.31 	Revenue; the Department of Transportation; the Department of Veterans Affairs; and 
10.32 	their successor departments.

11.1 	EFFECTIVE DATE. This section is effective July 1, 2017.

11.2 	Sec. 2. Minnesota Statutes 2014, section 15.06, subdivision 1, is amended to read:
11.3 		Subdivision 1.Applicability. This section applies to the following departments or 
11.4 	agencies: the Departments of Administration~~,~~; Agriculture~~,~~; Commerce~~,~~; Corrections~~,~~;
11.5 	Direct Care Services; Education~~,~~; Employment and Economic Development~~,~~; Health~~,~~;
11.6 	Human Rights~~,~~; Human Services; Labor and Industry~~,~~; Management and Budget~~,~~; Natural 
11.7 	Resources~~,~~; Public Safety~~, Human Services,~~; Revenue~~,~~; Transportation~~,~~; and Veterans 
11.8 	Affairs; the Housing Finance and Pollution Control Agencies; the Office of Commissioner 
11.9 	of Iron Range Resources and Rehabilitation; the Office of MN.IT Services; the Bureau 
11.10 	of Mediation Services; and their successor departments and agencies. The heads of the 
11.11 	foregoing departments or agencies are "commissioners."

11.12 	EFFECTIVE DATE. This section is effective July 1, 2017.

11.13 	Sec. 3. Minnesota Statutes 2014, section 15A.0815, subdivision 2, is amended to read:
11.14 		Subd. 2.Group I salary limits. The salary for a position listed in this subdivision 
11.15 	shall not exceed 133 percent of the salary of the governor. This limit must be adjusted 
11.16 	annually on January 1. The new limit must equal the limit for the prior year increased 
11.17 	by the percentage increase, if any, in the Consumer Price Index for all urban consumers 
11.18 	from October of the second prior year to October of the immediately prior year. The 
11.19 	commissioner of management and budget must publish the limit on the department's Web 
11.20 	site. This subdivision applies to the following positions:
11.21 	Commissioner of administration;
11.22 	Commissioner of agriculture;
11.23 	Commissioner of education;
11.24 	Commissioner of commerce;
11.25 	Commissioner of corrections;
11.26 	Commissioner of direct care services;
11.27 	Commissioner of health;
11.28 	Commissioner, Minnesota Office of Higher Education;
11.29 	Commissioner, Housing Finance Agency;
11.30 	Commissioner of human rights;
11.31 	Commissioner of human services;
11.32 	Commissioner of labor and industry;
11.33 	Commissioner of management and budget;
11.34 	Commissioner of natural resources;
12.1 	Commissioner, Pollution Control Agency;
12.2 	Executive director, Public Employees Retirement Association;
12.3 	Commissioner of public safety;
12.4 	Commissioner of revenue;
12.5 	Executive director, State Retirement System;
12.6 	Executive director, Teachers Retirement Association;
12.7 	Commissioner of employment and economic development;
12.8 	Commissioner of transportation; and
12.9 	Commissioner of veterans affairs.

12.10 	EFFECTIVE DATE. This section is effective July 1, 2017.

12.11 	Sec. 4. Minnesota Statutes 2014, section 43A.08, subdivision 1a, is amended to read:
12.12 		Subd. 1a.Additional unclassified positions. Appointing authorities for the 
12.13 	following agencies may designate additional unclassified positions according to this 
12.14 	subdivision: the Departments of Administration; Agriculture; Commerce; Corrections; 
12.15 	Direct Care Services; Education; Employment and Economic Development; Explore 
12.16 	Minnesota Tourism; Management and Budget; Health; Human Rights; Human Services; 
12.17 	Labor and Industry; Natural Resources; Public Safety; ~~Human Services;~~ Revenue; 
12.18 	Transportation; and Veterans Affairs; the Housing Finance and Pollution Control Agencies; 
12.19 	the State Lottery; the State Board of Investment; the Office of Administrative Hearings; the 
12.20 	Office of MN.IT Services; the Offices of the Attorney General, Secretary of State, and State 
12.21 	Auditor; the Minnesota State Colleges and Universities; the Minnesota Office of Higher 
12.22 	Education; the Perpich Center for Arts Education; and the Minnesota Zoological Board.
12.23 	A position designated by an appointing authority according to this subdivision must 
12.24 	meet the following standards and criteria:
12.25 	(1) the designation of the position would not be contrary to other law relating 
12.26 	specifically to that agency;
12.27 	(2) the person occupying the position would report directly to the agency head or 
12.28 	deputy agency head and would be designated as part of the agency head's management 
12.29 	team;
12.30 	(3) the duties of the position would involve significant discretion and substantial 
12.31 	involvement in the development, interpretation, and implementation of agency policy;
12.32 	(4) the duties of the position would not require primarily personnel, accounting, or 
12.33 	other technical expertise where continuity in the position would be important;
13.1 	(5) there would be a need for the person occupying the position to be accountable to, 
13.2 	loyal to, and compatible with, the governor and the agency head, the employing statutory 
13.3 	board or commission, or the employing constitutional officer;
13.4 	(6) the position would be at the level of division or bureau director or assistant 
13.5 	to the agency head; and
13.6 	(7) the commissioner has approved the designation as being consistent with the 
13.7 	standards and criteria in this subdivision.

13.8 	EFFECTIVE DATE. This section is effective July 1, 2017.

13.9 	Sec. 5. [246D.01] DEPARTMENT OF DIRECT CARE SERVICES.
13.10 	The Department of Direct Care Services is created. The governor shall appoint the 
13.11 	commissioner of direct care services under section 15.06. The commissioner shall develop 
13.12 	and maintain direct care services in a manner consistent with sections 245.461 and 245.487 
13.13 	and chapters 246, 252, 253, 254A, and 254B. Direct care services shall be provided 
13.14 	in coordination with counties and other vendors. Direct care services shall include 
13.15 	regional treatment centers, enterprise services, community-based services and programs, 
13.16 	community preparation services, consultative services, and other services consistent with 
13.17 	the mission of the Department of Direct Care Services. These services shall include 
13.18 	crisis beds, waivered homes, intermediate care facilities, and day training and habilitation 
13.19 	facilities. The administrative structure of direct care services must be statewide in character. 
13.20 	The direct care services staff may deliver services at any location throughout the state.

13.21 	EFFECTIVE DATE. This section is effective July 1, 2017.

13.22 	Sec. 6. [246D.05] TRANSFER OF DUTIES.
13.23 	(a) Section 15.039 applies to the transfer of duties required by this chapter.
13.24 	(b) The commissioner of administration, with the approval of the governor, may 
13.25 	issue reorganization orders under section 16B.37 as necessary to carry out the transfer of 
13.26 	duties required by this chapter. The provision of section 16B.37, subdivision 1, stating that 
13.27 	transfers under section 16B.37 may be made only to an agency that has been in existence 
13.28 	for at least one year does not apply to transfers to an agency created by this chapter.
13.29 	(c) The initial salary for the commissioner of direct care services is the same as the 
13.30 	salary for the commissioner of health. The salary may be changed in the manner specified 
13.31 	in section 15A.0815.
13.32 	(d) The commissioner of management and budget must ensure that the aggregate 
13.33 	cost for the commissioner of direct care services is not more than the aggregate cost of the 
14.1 	primary executives in the Department of Human Services responsible for management of 
14.2 	direct care services immediately before the effective date of this chapter.
14.3 	(e) For an employee affected by the transfer of duties required by this chapter, 
14.4 	the seniority accrued by the employee at the employee's former agency transfers to the 
14.5 	employee's new agency.

14.6 	EFFECTIVE DATE. This section is effective July 1, 2017.

14.7 	Sec. 7. REVISOR'S INSTRUCTION.
 14.8 	The revisor of statutes, in consultation with staff from the House Research 
14.9 	Department; House Fiscal Analysis; the Office of Senate Counsel, Research, and Fiscal 
14.10 	Analysis; and the respective departments shall prepare legislation for introduction in the 
14.11 	2017 legislative session proposing the statutory changes needed to implement the transfers 
14.12 	of duties required by this article.

14.13 	EFFECTIVE DATE. This section is effective July 1, 2016.

14.14 	ARTICLE 5
14.15 	OFFICE OF ELIGIBILITY SERVICES

14.16 	Section 1. [256S.01] OFFICE OF ELIGIBILITY SERVICES.
14.17 		Subdivision 1.Creation. A state Office of Eligibility Services is created.
14.18 		Subd. 2.Director. (a) The office shall be under the direction of a director who 
14.19 	shall be appointed by the governor, with the advice and consent of the senate, for a term 
14.20 	ending on June 30 of the sixth calendar year after appointment. Senate confirmation of 
14.21 	the director shall be as provided by section 15.066. The director shall appoint deputies 
14.22 	to serve in the office as necessary to fulfill the duties of the office. The director may 
14.23 	delegate to a subordinate employee the exercise of a specified statutory power or duty, 
14.24 	subject to the control of the director. Every delegation must be by written order filed 
14.25 	with the secretary of state.
14.26 	(b) The director shall be in the unclassified service, but may be removed only for 
14.27 	cause.
14.28 		Subd. 3.Duties. (a) The director of eligibility services shall determine initial and 
14.29 	ongoing client eligibility, and act on client appeals, for:
14.30 	(1) social service and income assistance programs administered under chapters 
14.31 	119B, 256, 256D, 256E, 256F, 256I, 256J, 256K, 256N, and 256P;
14.32 	(2) mental health and chemical dependency programs administered under chapters 
14.33 	245, 253C, 254A, and 254B;
15.1 	(3) health care programs administered under chapters 256, 256B, and 256L;
15.2 	(4) programs for persons with disabilities administered under chapters 245D, 248, 
15.3 	252, 256C, and 256Q;
15.4 	(5) student higher education grant, loan, and assistance programs administered 
15.5 	under chapter 136A;
15.6 	(6) student prekindergarten through grade 12 scholarship, nutrition, and assistance 
15.7 	programs administered under chapters 119A and 120A to 127A; and
15.8 	(7) housing assistance programs administered under chapters 462A and 462C.
15.9 	(b) The director of eligibility services shall work with the commissioners of the 
15.10 	relevant state agencies and directors of relevant local agencies to coordinate eligibility 
15.11 	determination for the programs listed in paragraph (a) with program operations, and to 
15.12 	streamline, simplify, and consolidate the application and renewal process for persons 
15.13 	seeking or receiving assistance through the programs.

15.14 	EFFECTIVE DATE. This section is effective July 1, 2017.

15.15 	Sec. 2. [256S.05] TRANSFER OF DUTIES.
15.16 	(a) Section 15.039 applies to the transfer of duties required by this chapter.
15.17 	(b) The commissioner of administration, with approval of the governor, may issue 
15.18 	reorganization orders under section 16B.37 as necessary to carry out the transfer of duties 
15.19 	required by this chapter. The provision of section 16B.37, subdivision 1, stating that 
15.20 	transfers under that section may be made only to an agency that has been in existence for 
15.21 	at least one year does not apply to transfers to an agency created by this chapter.
15.22 	(c) The commissioner of management and budget must ensure that the aggregate 
15.23 	cost for the director of the Office of Eligibility Services is not more than the aggregate cost 
15.24 	of the primary executives in state agencies responsible for client eligibility determinations 
15.25 	and client appeals immediately before the effective date of this chapter.
15.26 	(d) For an employee affected by the transfer of duties required by this chapter, 
15.27 	the seniority accrued by the employee at the employee's former agency transfers to the 
15.28 	employee's new agency.

15.29 	EFFECTIVE DATE. This section is effective July 1, 2017.

15.30 	Sec. 3. REVISOR'S INSTRUCTION.
 15.31 	The revisor of statutes, in consultation with staff from the House Research 
15.32 	Department; House Fiscal Analysis; the Office of Senate Counsel, Research, and Fiscal 
15.33 	Analysis; and the respective departments shall prepare legislation for introduction in the 
16.1 	2017 legislative session proposing the statutory changes needed to implement the transfers 
16.2 	of duties required by this article.

16.3 	EFFECTIVE DATE. This section is effective July 1, 2016.

16.4 	ARTICLE 6
16.5 	TRANSFER OF DUTIES

16.6 	Section 1. [60A.033] DUTIES TRANSFERRED FROM ANOTHER AGENCY.
16.7 	(a) The following powers and duties of the Department of Health are transferred to 
16.8 	the Department of Commerce under section 15.039:
16.9 	(1) regulation of health maintenance organizations and community integrated service 
16.10 	networks, including regulation of enrollee appeal and complaint resolution processes;
16.11 	(2) regulation of county-based purchasing plans and utilization review organizations;
16.12 	(3) certification of health care provider network adequacy in health plans; and
16.13 	(4) health plan quality assurance and performance measurement activities.
16.14 	(b) For an employee affected by the transfer of duties required by this section, 
16.15 	the seniority accrued by the employee at the employee's former agency transfers to the 
16.16 	employee's new agency.

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

16.24 	EFFECTIVE DATE. This section is effective July 1, 2017.

16.25 	Sec. 3. Minnesota Statutes 2014, section 299A.015, is amended to read:
16.26 	299A.015 DUTIES TRANSFERRED FROM OTHER AGENCY.
16.27 	(a) The powers and duties of the Department of Children, Families, and Learning 
16.28 	with respect to the Office of Drug Policy and Violence Prevention and Community 
16.29 	Advisory Violence Prevention Council under Minnesota Statutes 1998, sections 119A.25, 
16.30 	119A.26, 119A.27, 119A.28, 119A.29, 119A.31, 119A.32, 119A.33, and 119A.34, are 
16.31 	transferred to the Department of Public Safety under section 15.039.
17.1 	(b) The powers and duties of the Department of Human Services with respect to 
17.2 	the Department of Human Services Background Study Act under chapter 245C, are 
17.3 	transferred to the Department of Public Safety under section 15.039.
17.4 	(c) The powers and duties of the Department of Health with respect to background 
17.5 	studies required by sections 144.058, 144A.476, 144A.62, 144A.754, 145A.061, and 
17.6 	157.17, are transferred to the Department of Public Safety under section 15.039.
17.7 	(d) For the purpose of completing background studies, the commissioner of public 
17.8 	safety shall have authority to access: 
17.9 	(1) maltreatment data maintained by local welfare agencies or agencies responsible 
17.10 	for assessing or investigating reports under section 626.556; and
17.11 	(2) names of substantiated perpetrators related to maltreatment of vulnerable adults 
17.12 	maintained by the commissioner of human services under section 626.557.
17.13 	(e) For employees affected by the transfer of duties required by paragraphs (b) and 
17.14 	(c), the seniority accrued by the employee at the employee's former agency transfers to the 
17.15 	employee's new agency.

17.16 	EFFECTIVE DATE. This section is effective July 1, 2017.

17.17 	Sec. 4. DIRECTION TO COMMISSIONERS OF HUMAN SERVICES AND 
17.18 	EMPLOYMENT AND ECONOMIC DEVELOPMENT.
 17.19 	The commissioners of human services and employment and economic development, 
17.20 	in consultation with counties and stakeholders, shall: (1) prepare legislation for the 2017 
17.21 	legislative session to transfer the Minnesota family investment program under Minnesota 
17.22 	Statutes, chapter 256J, except for the child-only TANF program under Minnesota 
17.23 	Statutes, section 256J.88, from the Department of Human Services to the Department of 
17.24 	Employment and Economic Development; and (2) report to the chairs and ranking minority 
17.25 	members of the legislative committees with jurisdiction over human services policy and 
17.26 	finance and employment and economic development policy and finance regarding the 
17.27 	proposed transfer of the Minnesota family investment program by February 1, 2017.

17.28 	EFFECTIVE DATE. This section is effective July 1, 2016.

17.29 	Sec. 5. REVISOR'S INSTRUCTION.
 17.30 	The revisor of statutes, in consultation with staff from the House Research 
17.31 	Department; House Fiscal Analysis; the Office of Senate Counsel, Research, and Fiscal 
17.32 	Analysis; and the respective departments shall prepare legislation for introduction in the 
18.1 	2017 legislative session proposing the statutory changes needed to implement the transfers 
18.2 	of duties required by this article.

18.3 	EFFECTIVE DATE. This section is effective July 1, 2016.