1.1 	CONFERENCE COMMITTEE REPORT ON H. F. No. 5247
1.2 	A bill for an act
1.3 	relating to taxation; modifying individual income taxes, corporate franchise taxes, 
1.4 	property taxes, local government aids, minerals taxes, sales and use taxes, gross 
1.5 	receipts taxes, excise taxes, and other tax-related provisions; modifying income 
1.6 	tax credits and subtractions; expanding the child tax credit and providing for a 
1.7 	minimum credit; providing for nonconformity to certain worker classification 
1.8 	rules; providing for disclosure of certain corporate franchise tax information; 
1.9 	providing for direct free filing; requiring a corporate tax base erosion study; 
1.10 	modifying property tax exemptions, credits, classifications, and abatements; 
1.11 	adjusting local government aid calculations and payments and forgiving local 
1.12 	government aid penalties; providing for an advance homestead credit for seniors; 
1.13 	providing for transfers and distributions of proceeds of minerals taxes; providing 
1.14 	for issuance of revenue bonds; providing for an amusement device gross receipts 
1.15 	tax in lieu of the sales and use tax; providing sales and use tax construction 
1.16 	exemptions; repealing the tax on illegal marijuana and controlled substances; 
1.17 	providing special tax increment financing authority; authorizing cities and counties 
1.18 	to impose local sales and use taxes for certain projects; establishing a local sales 
1.19 	tax equalization distribution; providing for state auditor oversight of local sales 
1.20 	and use taxes; modifying certain special local taxes; providing for taxpayer 
1.21 	assistance and outreach grants; providing aid for various uses; providing for the 
1.22 	establishment of land valuation districts; making technical changes; requiring 
1.23 	reports; transferring money; appropriating money;amending Minnesota Statutes 
1.24 	2022, sections 10A.02, subdivision 11b; 10A.322, subdivision 4; 116U.27, 
1.25 	subdivision 2; 123B.53, subdivision 1; 123B.71, subdivision 8; 270C.21; 270C.445, 
1.26 	subdivision 6; 272.02, subdivisions 7, 19, by adding subdivisions; 273.13, 
1.27 	subdivision 22; 273.135, subdivision 2; 273.1393; 273.38; 273.41; 275.065, by 
1.28 	adding a subdivision; 276.04, subdivision 2, as amended, by adding a subdivision; 
1.29 	276A.01, subdivision 17; 276A.06, subdivision 8; 289A.08, subdivision 1; 289A.12, 
1.30 	subdivision 18; 290.0132, by adding a subdivision; 290.0683, subdivision 3; 
1.31 	290.92, by adding a subdivision; 290A.03, by adding subdivisions; 295.53, 
1.32 	subdivision 4a; 297A.68, subdivisions 3a, 45; 297A.99, subdivision 3, by adding 
1.33 	a subdivision; 297I.20, subdivision 4; 298.17; 298.28, subdivision 8; 298.282, 
1.34 	subdivision 1; 298.292, subdivision 2; 375.192, subdivision 2; 446A.086, 
1.35 	subdivision 1; 469.104; 469.1812, by adding a subdivision; 469.1813, subdivisions 
1.36 	1, 6, by adding a subdivision; 469.190, subdivisions 1, 7; 474A.091, subdivisions 
1.37 	2, 2a; 609.902, subdivision 4; Minnesota Statutes 2023 Supplement, sections 
1.38 	41B.0391, subdivision 4; 123B.71, subdivision 12; 126C.40, subdivision 6; 273.13, 
1.39 	subdivisions 25, 34; 273.1392; 275.065, subdivision 3; 290.01, subdivision 19; 
1.40 	290.0132, subdivision 34; 290.0134, subdivision 20; 290.06, subdivision 23; 
1.41 	290.0661, subdivisions 1, 8, by adding a subdivision; 290.0671, subdivision 1a; 
1.42 	290.0693, subdivisions 1, 6, 8; 290.0695, subdivision 2; 290A.03, subdivisions 3, 
1.43 	13; 297A.61, subdivision 3; 297A.99, subdivision 1; 297H.13, subdivision 2; 
2.1 	298.018, subdivision 1; 298.28, subdivisions 7a, 16; 349.12, subdivision 25; 
2.2 	477A.30, subdivisions 4, 5, 6, 7; 477A.35, subdivision 6; Laws 1986, chapter 396, 
2.3 	section 5, as amended; Laws 1986, chapter 400, section 44, as amended; Laws 
2.4 	2010, chapter 389, article 7, section 22, as amended; Laws 2014, chapter 308, 
2.5 	article 6, section 9, as amended; Laws 2017, First Special Session chapter 1, article 
2.6 	6, section 22; Laws 2023, chapter 1, sections 22; 28; proposing coding for new 
2.7 	law in Minnesota Statutes, chapters 270B; 273; 289A; 290A; 295; 297A; 428A; 
2.8 	repealing Minnesota Statutes 2022, sections 13.4967, subdivision 5; 297D.02; 
2.9 	297D.03; 297D.05; 297D.09, subdivisions 1, 2; 297D.12; 297D.13; Minnesota 
2.10 	Statutes 2023 Supplement, sections 297A.99, subdivision 3a; 297D.01; 297D.04; 
2.11 	297D.06; 297D.07; 297D.08; 297D.085; 297D.09, subdivision 1a; 297D.10; 
2.12 	297D.11; 477A.30, subdivision 8; Laws 2023, chapter 64, article 15, section 24.
2.13 	May 19, 2024
2.14 	The Honorable Melissa Hortman
2.15 	Speaker of the House of Representatives
2.16 	The Honorable Bobby Joe Champion
2.17 	President of the Senate
2.18 	We, the undersigned conferees for H. F. No. 5247 report that we have agreed upon the 
2.19 	items in dispute and recommend as follows:
2.20 	That the Senate recede from its amendments and that H. F. No. 5247 be further amended 
2.21 	as follows:
2.22 	Delete everything after the enacting clause and insert:

2.23 	ARTICLE 1
2.24 	TRANSPORTATION APPROPRIATIONS

2.25	Section 1. TRANSPORTATION APPROPRIATIONS.
 	
2.26 	The sums shown in the columns marked "Appropriations" are added to the appropriations 
2.27 	in Laws 2023, chapter 68, article 1, to the agencies and for the purposes specified in this 
2.28 	article. The appropriations are from the trunk highway fund, or another named fund, and 
2.29 	are available for the fiscal years indicated for each purpose. Amounts for "Total 
2.30 	Appropriation" and sums shown in the corresponding columns marked "Appropriations by 
2.31 	Fund" are summary only and do not have legal effect. The figures "2024" and "2025" used 
2.32 	in this article mean that the appropriations listed under them are available for the fiscal year 
2.33 	ending June 30, 2024, or June 30, 2025, respectively. "Each year" is each of fiscal years 
2.34 	2024 and 2025.

2.35				APPROPRIATIONS
	
2.36				Available for the Year
	
2.37				Ending June 30
	
2.38					2024
		2025

2.39
2.40	Sec. 2. DEPARTMENT OF 
TRANSPORTATION

3.1	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	58,416,000

3.2	Appropriations by Fund
	
3.3		2024
	2025
	
3.4	General
	-0-
	3,443,000
	
3.5	Special Revenue
	-0-
	3,750,000
	
3.6	Trunk Highway
	-0-
	51,223,000
	
3.7 	The appropriations in this section are to the 
3.8 	commissioner of transportation.
3.9 	The amounts that may be spent for each 
3.10 	purpose are specified in the following 
3.11 	subdivisions.

3.12	Subd. 2.Multimodal Systems

3.13	(a) Transit
		-0-
		3,750,000
	
3.14 	Notwithstanding the requirements under 
3.15 	Minnesota Statutes, section 174.38, 
3.16 	subdivision 3, paragraph (a), this appropriation 
3.17 	is from the active transportation account in 
3.18 	the special revenue fund for a grant to the city 
3.19 	of Ramsey for design, environmental analysis, 
3.20 	site preparation, and construction of the 
3.21 	Mississippi Skyway Trail Bridge over marked 
3.22 	U.S. Highways 10 and 169 in Ramsey to 
3.23 	provide for a grade-separated crossing for 
3.24 	pedestrians and nonmotorized vehicles. 
3.25 	Notwithstanding Minnesota Statutes, section 
3.26 	16B.98, subdivision 14, the commissioner 
3.27 	must not use any amount of this appropriation 
3.28 	for administrative costs. This is a onetime 
3.29 	appropriation and is available until June 30, 
3.30 	2028.

3.31	(b) Passenger Rail
		-0-
		1,000,000
	
3.32 	This appropriation is from the general fund 
3.33 	for a grant to the Ramsey County Regional 
3.34 	Railroad Authority for a portion of the costs 
4.1 	of insurance coverage related to rail-related 
4.2 	incidents occurring at Union Depot in the city 
4.3 	of St. Paul. Notwithstanding Minnesota 
4.4 	Statutes, section 16B.98, subdivision 14, the 
4.5 	commissioner must not use any amount of this 
4.6 	appropriation for administrative costs. This is 
4.7 	a onetime appropriation.

4.8	Subd. 3.State Roads

4.9	(a) Operations and Maintenance
		-0-
		2,405,000
	
4.10 	$300,000 in fiscal year 2025 is for rumble 
4.11 	strips under Minnesota Statutes, section 
4.12 	161.1258.
4.13 	$1,000,000 in fiscal year 2025 is for 
4.14 	landscaping improvements located within 
4.15 	trunk highway rights-of-way under the 
4.16 	Department of Transportation's community 
4.17 	roadside landscape partnership program, with 
4.18 	prioritization of tree planting as feasible.
4.19 	$1,000,000 is from the general fund for the 
4.20 	traffic safety camera pilot program under 
4.21 	Minnesota Statutes, section 169.147, and the 
4.22 	evaluation and legislative report under article 
4.23 	3, sections 116 and 117. With the approval of 
4.24 	the commissioner of transportation, any 
4.25 	portion of this appropriation is available to the 
4.26 	commissioner of public safety. This is a 
4.27 	onetime appropriation and is available until 
4.28 	June 30, 2029.
4.29 	$105,000 in fiscal year 2025 is for the cost of 
4.30 	staff time to coordinate with the Public 
4.31 	Utilities Commission relating to placement of 
4.32 	high voltage transmission lines along trunk 
4.33 	highways.

4.34	(b) Program Planning and Delivery
		-0-
		5,800,000
	
5.1 	$3,000,000 in fiscal year 2025 is for 
5.2 	implementation and development of statewide 
5.3 	and regional travel demand modeling related 
5.4 	to the requirements under Minnesota Statutes, 
5.5 	section 161.178. This is a onetime 
5.6 	appropriation and is available until June 30, 
5.7 	2026.
5.8 	$800,000 in fiscal year 2025 is for one or more 
5.9 	grants to metropolitan planning organizations 
5.10 	outside the metropolitan area, as defined in 
5.11 	Minnesota Statutes, section 473.121, 
5.12 	subdivision 2, for modeling activities related 
5.13 	to the requirements under Minnesota Statutes, 
5.14 	section 161.178. Notwithstanding Minnesota 
5.15 	Statutes, section 16B.98, subdivision 14, the 
5.16 	commissioner must not use any amount of this 
5.17 	appropriation for administrative costs. This is 
5.18 	a onetime appropriation.
5.19 	$2,000,000 in fiscal year 2025 is to complete 
5.20 	environmental documentation and for 
5.21 	preliminary engineering and design for the 
5.22 	reconstruction of marked Trunk Highway 55 
5.23 	from Hennepin County State-Aid Highway 
5.24 	19, north of the city of Loretto to Hennepin 
5.25 	County Road 118 near the city of Medina. 
5.26 	This is a onetime appropriation and is 
5.27 	available until June 30, 2027.

5.28	(c) State Road Construction
		-0-
		10,900,000
	
5.29 	$8,900,000 in fiscal year 2025 is for the 
5.30 	acquisition, environmental analysis, predesign, 
5.31 	design, engineering, construction, 
5.32 	reconstruction, and improvement of trunk 
5.33 	highway bridges, including design-build 
5.34 	contracts, program delivery, consultant usage 
5.35 	to support these activities, and the cost of 
6.1 	payments to landowners for lands acquired 
6.2 	for highway rights-of-way. Projects under this 
6.3 	appropriation must follow eligible investment 
6.4 	priorities identified in the Minnesota state 
6.5 	highway investment plan under Minnesota 
6.6 	Statutes, section 174.03, subdivision 1c. The 
6.7 	commissioner may use up to 17 percent of this 
6.8 	appropriation for program delivery. This is a 
6.9 	onetime appropriation and is available until 
6.10 	June 30, 2028.
6.11 	$1,000,000 in fiscal year 2025 is for predesign 
6.12 	and design of intersection safety improvements 
6.13 	along marked Trunk Highway 65 from the 
6.14 	interchange with marked U.S. Highway 10 to 
6.15 	99th Avenue Northeast in the city of Blaine. 
6.16 	This is a onetime appropriation.
6.17 	$1,000,000 in fiscal year 2025 is to design and 
6.18 	construct trunk highway improvements 
6.19 	associated with an interchange at U.S. 
6.20 	Highway 169, marked Trunk Highway 282, 
6.21 	and Scott County State-Aid Highway 9 in the 
6.22 	city of Jordan, including accommodations for 
6.23 	bicycles and pedestrians and for bridge and 
6.24 	road construction. This is a onetime 
6.25 	appropriation and is available until June 30, 
6.26 	2027.

6.27	(d) Highway Debt Service
		-0-
		468,000
	
6.28 	This appropriation is for transfer to the state 
6.29 	bond fund. If this appropriation is insufficient 
6.30 	to make all transfers required in the year for 
6.31 	which it is made, the commissioner of 
6.32 	management and budget must transfer the 
6.33 	deficiency amount as provided under 
6.34 	Minnesota Statutes, section 16A.641, and 
6.35 	notify the chairs and ranking minority 
7.1 	members of the legislative committees with 
7.2 	jurisdiction over transportation finance and 
7.3 	the chairs of the senate Finance Committee 
7.4 	and the house of representatives Ways and 
7.5 	Means Committee of the amount of the 
7.6 	deficiency. Any excess appropriation cancels 
7.7 	to the trunk highway fund.

7.8	Subd. 4.Local Roads
 				1,200,000
	
7.9 	$1,000,000 in fiscal year 2025 is from the 
7.10 	general fund for a grant to a political 
7.11 	subdivision that (1) has a directly elected 
7.12 	governing board, (2) is contained within a city 
7.13 	of the first class, and (3) maintains sole 
7.14 	jurisdiction over a roadway system within the 
7.15 	city. This appropriation is for the design, 
7.16 	engineering, construction, and reconstruction 
7.17 	of roads on the roadway system. 
7.18 	Notwithstanding Minnesota Statutes, section 
7.19 	16B.98, subdivision 14, the commissioner 
7.20 	must not use any amount of this appropriation 
7.21 	for administrative costs. This is a onetime 
7.22 	appropriation and is available until June 30, 
7.23 	2027.
7.24 	$200,000 in fiscal year 2025 is from the 
7.25 	general fund for a grant to the city of 
7.26 	Shorewood to develop a transportation 
7.27 	management organization along the marked 
7.28 	Trunk Highway 7 corridor from the western 
7.29 	border of Hennepin County to Interstate 
7.30 	Highway 494. Money under this rider is 
7.31 	available for developing a comprehensive 
7.32 	study and financial plan for a transportation 
7.33 	management organization in the cities and 
7.34 	school districts along this corridor and 
7.35 	connecting roadways. Notwithstanding 
8.1 	Minnesota Statutes, section 16B.98, 
8.2 	subdivision 14, the commissioner must not 
8.3 	use any amount of this appropriation for 
8.4 	administrative costs. This is a onetime 
8.5 	appropriation.

8.6	Subd. 5.Agency Management

8.7	(a) Agency Services
		-0-
		243,000
	
8.8 	This appropriation is from the general fund 
8.9 	for costs related to complete streets 
8.10 	implementation training under Minnesota 
8.11 	Statutes, section 174.75, subdivision 2a.

8.12	(b) Buildings
		-0-
		32,650,000
	
8.13 	$20,100,000 in fiscal year 2025 is for the 
8.14 	transportation facilities capital improvement 
8.15 	program under Minnesota Statutes, section 
8.16 	174.595. This is a onetime appropriation and 
8.17 	is available until June 30, 2028.
8.18 	$7,750,000 in fiscal year 2025 is for land 
8.19 	acquisition, predesign, design, and 
8.20 	construction of expanded truck parking at Big 
8.21 	Spunk in Avon and Enfield Rest Areas and 
8.22 	for the rehabilitation or replacement of truck 
8.23 	parking information management system 
8.24 	equipment at Department of 
8.25 	Transportation-owned parking rest area 
8.26 	locations. This is a onetime appropriation and 
8.27 	is available until June 30, 2028.
8.28 	$4,800,000 in fiscal year 2025 is for predesign, 
8.29 	design, engineering, environmental analysis 
8.30 	and remediation, acquisition of land or 
8.31 	permanent easements, and construction of one 
8.32 	or more truck parking safety projects for the 
8.33 	trunk highway system. Each truck parking 
8.34 	safety project must expand truck parking 
9.1 	availability in proximity to a trunk highway 
9.2 	and be located in the Department of 
9.3 	Transportation metropolitan district. In 
9.4 	developing each project, the commissioner 
9.5 	must seek partnerships with local units of 
9.6 	government, established truck stop businesses, 
9.7 	or a combination. Partnership activities may 
9.8 	include but are not limited to parking site 
9.9 	identification and review, financial assistance, 
9.10 	donation of land, and project development 
9.11 	activities. This is a onetime appropriation and 
9.12 	is available until June 30, 2027.

9.13	Sec. 3. METROPOLITAN COUNCIL
 	$
	-0-
		10,000,000
	
9.14 	The appropriation in this section is from the 
9.15 	general fund to the Metropolitan Council.
9.16 	This appropriation is for a grant to Hennepin 
9.17 	County to administer the Blue Line light rail 
9.18 	transit extension antidisplacement community 
9.19 	prosperity program under article 3, sections 
9.20 	118 and 119. Notwithstanding Minnesota 
9.21 	Statutes, section 16B.98, subdivision 14, the 
9.22 	council must not use any amount of this 
9.23 	appropriation for administrative costs. This is 
9.24 	a onetime appropriation and is available until 
9.25 	June 30, 2027.

9.26	Sec. 4. DEPARTMENT OF PUBLIC SAFETY

9.27	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	4,641,000
	
9.28 	The appropriations in this section are to the 
9.29 	commissioner of public safety.
9.30 	The amounts that may be spent for each 
9.31 	purpose are specified in the following 
9.32 	subdivisions.

9.33	Subd. 2.Driver and Vehicle Services
 		-0-
		3,241,000
	
10.1 	The appropriations in this subdivision are from 
10.2 	the driver and vehicle services operating 
10.3 	account in the special revenue fund.
10.4 	$2,969,000 in fiscal year 2025 is for staff and 
10.5 	related operating costs to support testing at 
10.6 	driver's license examination stations.
10.7 	$100,000 in fiscal year 2025 is for costs 
10.8 	related to the special license plate review 
10.9 	committee study and report under article 3, 
10.10 	section 131. This is a onetime appropriation 
10.11 	and is available until June 30, 2026.
10.12 	$172,000 in fiscal year 2025 is for costs 
10.13 	related to translating written materials and 
10.14 	providing them to driver's license agents and 
10.15 	deputy registrars as required under article 3, 
10.16 	section 123. This is a onetime appropriation.

10.17	Subd. 3.Traffic Safety
 		-0-
		1,400,000
	
10.18 	Notwithstanding Minnesota Statutes, section 
10.19 	299A.705, regarding the use of funds from 
10.20 	this account, $1,200,000 in fiscal year 2025 
10.21 	is from the driver and vehicle services 
10.22 	operating account in the special revenue fund 
10.23 	for the Lights On grant program under 
10.24 	Minnesota Statutes, section 169.515. The 
10.25 	commissioner must contract with the Lights 
10.26 	On! microgrant program to administer and 
10.27 	operate the grant program. Notwithstanding 
10.28 	Minnesota Statutes, section 16B.98, 
10.29 	subdivision 14, the commissioner may use up 
10.30 	to two percent of this appropriation for 
10.31 	administrative costs. This is a onetime 
10.32 	appropriation and is available until June 30, 
10.33 	2026.
11.1 	$200,000 in fiscal year 2025 is from the 
11.2 	motorcycle safety account in the special 
11.3 	revenue fund for the public education 
11.4 	campaign on motorcycle operation under 
11.5 	article 3, section 122. This is a onetime 
11.6 	appropriation.

11.7 	Sec. 5. APPROPRIATION; DEPARTMENT OF TRANSPORTATION.
 11.8 	$15,560,000 in fiscal year 2024 is appropriated from the general fund to the commissioner 
11.9 	of transportation for trunk highway and local road projects, which may include but are not 
11.10 	limited to feasibility and corridor studies, project development, predesign, preliminary and 
11.11 	final design, engineering, environmental analysis and mitigation, right-of-way acquisition, 
11.12 	construction, and associated infrastructure improvements. This appropriation is available 
11.13 	for grants to local units of government. The commissioner may establish that a grant under 
11.14 	this section does not require a nonstate contribution. Notwithstanding Minnesota Statutes, 
11.15 	section 16B.98, subdivision 14, the commissioner must not use any amount of this 
11.16 	appropriation for administrative costs. This is a onetime appropriation and is available until 
11.17 	June 30, 2029.

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

11.19 	Sec. 6. APPROPRIATIONS; DEPARTMENT OF ADMINISTRATION.
 11.20 		Subdivision 1.Minnesota Advisory Council on Infrastructure. $41,000 in fiscal year 
11.21 	2025 is appropriated from the general fund to the commissioner of administration for 
11.22 	purposes of the Minnesota Advisory Council on Infrastructure as provided under article 3, 
11.23 	section 121, and Minnesota Statutes, sections 16B.357 to 16B.359. The base for this 
11.24 	appropriation is $475,000 in fiscal year 2026 and $471,000 in fiscal year 2027.
11.25 		Subd. 2.Public-facing professional services. $43,000 in fiscal year 2025 is appropriated 
11.26 	from the general fund to the commissioner of administration for space costs incurred in 
11.27 	fiscal years 2025, 2026, and 2027 by tenants that provide public-facing professional services 
11.28 	on the Capitol complex. The commissioner of administration must designate one publicly 
11.29 	accessible space on the complex for which this appropriation may be used. This is a onetime 
11.30 	appropriation and is available until June 30, 2027.
11.31 		Subd. 3.Department of Transportation building. (a) The following are appropriated 
11.32 	to the commissioner of administration for design, construction, and equipment required to 
11.33 	upgrade the physical security elements and systems for the Department of Transportation 
12.1 	building, attached tunnel systems, surrounding grounds, and parking facilities as identified 
12.2 	in the 2017 Minnesota State Capitol complex physical security predesign and the updated 
12.3 	assessment completed in 2022:
12.4 	(1) $1,350,000 in fiscal year 2025 from the trunk highway fund; and
12.5 	(2) $450,000 in fiscal year 2025 from the general fund.
12.6 	(b) This is a onetime appropriation and is available until June 30, 2028.
12.7 		Subd. 4.State Patrol headquarters. $22,500,000 in fiscal year 2025 is appropriated 
12.8 	from the trunk highway fund to the commissioner of administration for design and land 
12.9 	acquisition for a new headquarters building and support facilities for the State Patrol. This 
12.10 	appropriation may also be used, as part of the first phase of the overall site development, 
12.11 	to design the abatement of hazardous materials and demolition of any buildings located on 
12.12 	the site and to demolish any buildings located on the site and abate hazardous materials. 
12.13 	This is a onetime appropriation and is available until June 30, 2028.

12.14 	Sec. 7. APPROPRIATION; DEPARTMENT OF COMMERCE.
 12.15 	$46,000 in fiscal year 2025 is appropriated from the general fund to the commissioner 
12.16 	of commerce for an environmental review conducted by the Department of Commerce 
12.17 	Energy Environmental Review and Analysis unit, relating to the placement of high voltage 
12.18 	transmission lines along trunk highway rights-of-way.

12.19 	Sec. 8. APPROPRIATION CANCELLATIONS; DEPARTMENT OF 
12.20 	TRANSPORTATION.
 12.21 	(a) $11,000,000 of the appropriation in fiscal year 2024 from the general fund for 
12.22 	Infrastructure Investment and Jobs Act (IIJA) discretionary matches under Laws 2023, 
12.23 	chapter 68, article 1, section 2, subdivision 5, paragraph (a), is canceled to the general fund.
12.24 	(b) $15,560,000 of the appropriation in fiscal year 2022 for trunk highway corridor 
12.25 	studies and local road grants under Laws 2021, First Special Session chapter 5, article 1, 
12.26 	section 6, is canceled to the general fund.

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

12.28 	Sec. 9. TRANSFER.
 12.29 	$11,350,000 in fiscal year 2025 is transferred from the general fund to the small cities 
12.30 	assistance account under Minnesota Statutes, section 162.145, subdivision 2. This is a 
13.1 	onetime transfer. The amount transferred under this section must be allocated and distributed 
13.2 	in the July 2024 payment.

13.3 	Sec. 10. Laws 2021, First Special Session chapter 5, article 1, section 2, subdivision 2, is 
13.4 	amended to read:

13.5	Subd. 2.Multimodal Systems
 					
13.6 	(a) Aeronautics

13.7	(1) Airport Development and Assistance
		24,198,000
		18,598,000

13.8	Appropriations by Fund
	
13.9		2022
	2023
	
13.10	General
	5,600,000
	-0-
	
13.11	Airports
	18,598,000
	18,598,000
	
13.12 	This appropriation is from the state airports 
13.13 	fund and must be spent according to 
13.14 	Minnesota Statutes, section 360.305, 
13.15 	subdivision 4.
13.16 	$5,600,000 in fiscal year 2022 is from the 
13.17 	general fund for a grant to the city of Karlstad 
13.18 	for the acquisition of land, predesign, design, 
13.19 	engineering, and construction of a primary 
13.20 	airport runway. This appropriation is for Phase 
13.21 	1 of the project.
13.22 	Notwithstanding Minnesota Statutes, section 
13.23 	16A.28, subdivision 6, this appropriation is 
13.24 	available for five years after the year of the 
13.25 	appropriation. If the appropriation for either 
13.26 	year is insufficient, the appropriation for the 
13.27 	other year is available for it.
13.28 	If the commissioner of transportation 
13.29 	determines that a balance remains in the state 
13.30 	airports fund following the appropriations 
13.31 	made in this article and that the appropriations 
13.32 	made are insufficient for advancing airport 
13.33 	development and assistance projects, an 
14.1 	amount necessary to advance the projects, not 
14.2 	to exceed the balance in the state airports fund, 
14.3 	is appropriated in each year to the 
14.4 	commissioner and must be spent according to 
14.5 	Minnesota Statutes, section 360.305, 
14.6 	subdivision 4. Within two weeks of a 
14.7 	determination under this contingent 
14.8 	appropriation, the commissioner of 
14.9 	transportation must notify the commissioner 
14.10 	of management and budget and the chairs, 
14.11 	ranking minority members, and staff of the 
14.12 	legislative committees with jurisdiction over 
14.13 	transportation finance concerning the funds 
14.14 	appropriated. Funds appropriated under this 
14.15 	contingent appropriation do not adjust the base 
14.16 	for fiscal years 2024 and 2025.

14.17	(2) Aviation Support Services
		8,332,000
		8,340,000

14.18	Appropriations by Fund
	
14.19		2022
	2023
	
14.20	General
	1,650,000
	1,650,000
	
14.21	Airports
	6,682,000
	6,690,000
	
14.22 	$28,000 in fiscal year 2022 and $36,000 in 
14.23 	fiscal year 2023 are from the state airports 
14.24 	fund for costs related to regulating unmanned 
14.25 	aircraft systems.

14.26	(3) Civil Air Patrol
		80,000
		80,000
	
14.27 	This appropriation is from the state airports 
14.28 	fund for the Civil Air Patrol.

14.29	(b) Transit and Active Transportation
		23,501,000
		18,201,000
	
14.30 	This appropriation is from the general fund.
14.31 	$5,000,000 in fiscal year 2022 is for the active 
14.32 	transportation program under Minnesota 
14.33 	Statutes, section 174.38. This is a onetime 
15.1 	appropriation and is available until June 30, 
15.2 	2025.
15.3 	$300,000 in fiscal year 2022 is for a grant to 
15.4 	the 494 Corridor Commission. The 
15.5 	commissioner must not retain any portion of 
15.6 	the funds appropriated under this section. The 
15.7 	commissioner must make grant payments in 
15.8 	full by December 31, 2021. Funds under this 
15.9 	grant are for programming and service 
15.10 	expansion to assist companies and commuters 
15.11 	in telecommuting efforts and promotion of 
15.12 	best practices. A grant recipient must provide 
15.13 	telework resources, assistance, information, 
15.14 	and related activities on a statewide basis. This 
15.15 	is a onetime appropriation.

15.16	(c) Safe Routes to School
		5,500,000
		500,000
	
15.17 	This appropriation is from the general fund 
15.18 	for the safe routes to school program under 
15.19 	Minnesota Statutes, section 174.40.
15.20 	If the appropriation for either year is 
15.21 	insufficient, the appropriation for the other 
15.22 	year is available for it.

15.23	(d) Passenger Rail
		10,500,000
		500,000
	
15.24 	This appropriation is from the general fund 
15.25 	for passenger rail activities under Minnesota 
15.26 	Statutes, sections 174.632 to 174.636.
15.27 	$10,000,000 in fiscal year 2022 is for final 
15.28 	design and construction to provide for a 
15.29 	second daily Amtrak train service between 
15.30 	Minneapolis and St. Paul and Chicago. The 
15.31 	commissioner may expend funds for program 
15.32 	delivery and administration from this amount. 
15.33 	This is a onetime appropriation and is 
15.34 	available until June 30, 2025.

16.1	(e) Freight
		8,342,000
		7,323,000

16.2	Appropriations by Fund
	
16.3		2022
	2023
	
16.4	General
	2,464,000
	1,445,000
	
16.5	Trunk Highway
	5,878,000
	5,878,000
	
16.6 	$1,000,000 in fiscal year 2022 is from the 
16.7 	general fund for procurement costs of a 
16.8 	statewide freight network optimization tool. 
16.9 	This is a onetime appropriation and is 
16.10 	available until June 30, 2023.
16.11 	$350,000 in fiscal year 2022 and $287,000 in 
16.12 	fiscal year 2023 are from the general fund for 
16.13 	two additional rail safety inspectors in the state 
16.14 	rail safety inspection program under 
16.15 	Minnesota Statutes, section 219.015. In each 
16.16 	year, the commissioner must not increase the 
16.17 	total assessment amount under Minnesota 
16.18 	Statutes, section 219.015, subdivision 2, from 
16.19 	the most recent assessment amount.

16.20 	Sec. 11. Laws 2023, chapter 68, article 1, section 3, subdivision 2, is amended to read:

16.2216.21
	Subd. 2.Transit System Operations
 		85,654,000
75,654,000
		32,654,000
	
16.23 	This appropriation is for transit system 
16.24 	operations under Minnesota Statutes, sections 
16.25 	473.371 to 473.449.
16.26 	$50,000,000 $40,000,000 in fiscal year 2024 
16.27 	is for a grant to Hennepin County for the Blue 
16.28 	Line light rail transit extension project, 
16.29 	including but not limited to predesign, design, 
16.30 	engineering, environmental analysis and 
16.31 	mitigation, right-of-way acquisition, 
16.32 	construction, and acquisition of rolling stock. 
16.33 	Of this amount, $40,000,000 $30,000,000 is 
16.34 	available only upon entering a full funding 
17.1 	grant agreement with the Federal Transit 
17.2 	Administration by June 30, 2027. This is a 
17.3 	onetime appropriation and is available until 
17.4 	June 30, 2030.
17.5 	$3,000,000 in fiscal year 2024 is for highway 
17.6 	bus rapid transit project development in the 
17.7 	marked U.S. Highway 169 and marked Trunk 
17.8 	Highway 55 corridors, including but not 
17.9 	limited to feasibility study, predesign, design, 
17.10 	engineering, environmental analysis and 
17.11 	remediation, and right-of-way acquisition.

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

17.13 	Sec. 12. Laws 2023, chapter 68, article 1, section 4, subdivision 3, is amended to read:

17.14	Subd. 3.State Patrol

17.15	(a) Patrolling Highways
		154,044,000
		141,731,000

17.16	Appropriations by Fund
	
17.17		2024
	2025
	
17.18	General
	387,000
	37,000
	
17.19	H.U.T.D.
	92,000
	92,000
	
17.20	Trunk Highway
	153,565,000
	141,602,000
	
17.21 	$350,000 in fiscal year 2024 is from the 
17.22 	general fund for predesign of a State Patrol 
17.23 	headquarters building and related storage and 
17.24 	training facilities. The commissioner of public 
17.25 	safety must work with the commissioner of 
17.26 	administration to complete the predesign. This 
17.27 	is a onetime appropriation and is available 
17.28 	until June 30, 2027.
17.29 	$14,500,000 in fiscal year 2024 is from the 
17.30 	trunk highway fund to purchase and equip a 
17.31 	helicopter for the State Patrol. This is a 
17.32 	onetime appropriation and is available until 
17.33 	June 30, 2025.
18.1 	$2,300,000 in fiscal year 2024 is from the 
18.2 	trunk highway fund to purchase a Cirrus single 
18.3 	engine airplane for the State Patrol. This is a 
18.4 	onetime appropriation and is available until 
18.5 	June 30, 2025.
18.6 	$1,700,000 in each year is from the trunk 
18.7 	highway fund for staff and equipment costs 
18.8 	of pilots for the State Patrol.
18.9 	$611,000 in fiscal year 2024 and $352,000 in 
18.10 	fiscal year 2025 are from the trunk highway 
18.11 	fund to support the State Patrol's accreditation 
18.12 	process under the Commission on 
18.13 	Accreditation for Law Enforcement Agencies.

18.14	(b) Commercial Vehicle Enforcement
		15,446,000
		18,423,000
	
18.15 	$2,948,000 in fiscal year 2024 and $5,248,000 
18.16 	in fiscal year 2025 are to provide the required 
18.17 	match for federal grants for additional troopers 
18.18 	and nonsworn commercial vehicle inspectors.

18.19	(c) Capitol Security
		18,666,000
		19,231,000
	
18.20 	This appropriation is from the general fund.
18.21 	The commissioner must not:
18.22 	(1) spend any money from the trunk highway 
18.23 	fund for capitol security; or
18.24 	(2) permanently transfer any state trooper from 
18.25 	the patrolling highways activity to capitol 
18.26 	security.
18.27 	The commissioner must not transfer any 
18.28 	money appropriated to the commissioner under 
18.29 	this section:
18.30 	(1) to capitol security; or
18.31 	(2) from capitol security.
19.1 	The commissioner may expend the 
19.2 	unencumbered balance from this appropriation 
19.3 	for operating costs under this subdivision.

19.4	(d) Vehicle Crimes Unit
		1,244,000
		1,286,000
	
19.5 	This appropriation is from the highway user 
19.6 	tax distribution fund to investigate:
19.7 	(1) registration tax and motor vehicle sales tax 
19.8 	liabilities from individuals and businesses that 
19.9 	currently do not pay all taxes owed; and
19.10 	(2) illegal or improper activity related to the 
19.11 	sale, transfer, titling, and registration of motor 
19.12 	vehicles.

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

19.14 	Sec. 13. Laws 2023, chapter 68, article 1, section 20, is amended to read:
19.15 	Sec. 20. TRANSFERS.
 19.16 	(a) $152,650,000 in fiscal year 2024 is transferred from the general fund to the trunk 
19.17 	highway fund for the state match for highway formula and discretionary grants under the 
19.18 	federal Infrastructure Investment and Jobs Act, Public Law 117-58, and for related state 
19.19 	investments.
19.20 	(b) $19,500,000 in fiscal year 2024 and $19,500,000 $19,215,000 in fiscal year 2025 
19.21 	are transferred from the general fund to the active transportation account under Minnesota 
19.22 	Statutes, section 174.38. The base for this transfer is $8,875,000 $8,155,000 in fiscal year 
19.23 	2026 and $9,000,000 $8,284,000 in fiscal year 2027.
19.24 	(c) By June 30, 2023, the commissioner of management and budget must transfer any 
19.25 	remaining unappropriated balance, estimated to be $232,000, from the driver services 
19.26 	operating account in the special revenue fund to the driver and vehicle services operating 
19.27 	account under Minnesota Statutes, section 299A.705.
19.28 	(d) By June 30, 2023, the commissioner of management and budget must transfer any 
19.29 	remaining unappropriated balance, estimated to be $13,454,000, from the vehicle services 
19.30 	operating account in the special revenue fund to the driver and vehicle services operating 
19.31 	account under Minnesota Statutes, section 299A.705.

20.1 	ARTICLE 2
20.2 	TRUNK HIGHWAY BONDS

20.3 	Section 1. BOND APPROPRIATIONS.
 20.4 	The sums shown in the column under "Appropriations" are appropriated from the bond 
20.5 	proceeds account in the trunk highway fund to the commissioner of transportation or other 
20.6 	named entity to be spent for public purposes. Appropriations of bond proceeds must be 
20.7 	spent as authorized by the Minnesota Constitution, articles XI and XIV. Unless otherwise 
20.8 	specified, money appropriated in this article for a capital program or project may be used 
20.9 	to pay state agency staff costs that are attributed directly to the capital program or project 
20.10 	in accordance with accounting policies adopted by the commissioner of management and 
20.11 	budget.

20.12	SUMMARY
	
20.13	Department of Transportation
	$
	30,000,000
	
20.14	Department of Management and Budget
	$
	30,000
	
20.15	TOTAL
	$
	30,030,000

20.16						APPROPRIATIONS

20.17
20.18	Sec. 2. DEPARTMENT OF 
TRANSPORTATION

20.19	Subdivision 1.Corridors of Commerce
 			$
	15,000,000
	
20.20 	(a) This appropriation is to the commissioner 
20.21 	of transportation for the corridors of commerce 
20.22 	program under Minnesota Statutes, section 
20.23 	161.088. The commissioner may use up to 17 
20.24 	percent of the amount for program delivery.
20.25 	(b) From this appropriation, the commissioner 
20.26 	may (1) select projects using the results of the 
20.27 	most recent evaluation for the corridors of 
20.28 	commerce program, and (2) provide additional 
20.29 	funds for projects previously selected under 
20.30 	the corridors of commerce program.

20.31	Subd. 2.State Road Construction
 				15,000,000
	
20.32 	This appropriation is to the commissioner of 
20.33 	transportation for construction, reconstruction, 
21.1 	and improvement of trunk highways, including 
21.2 	design-build contracts, internal department 
21.3 	costs associated with delivering the 
21.4 	construction program, and consultant usage 
21.5 	to support these activities. The commissioner 
21.6 	may use up to 17 percent of the amount for 
21.7 	program delivery.

21.8	Sec. 3. BOND SALE EXPENSES
 			$
	30,000
	
21.9 	This appropriation is to the commissioner of 
21.10 	management and budget for bond sale 
21.11 	expenses under Minnesota Statutes, sections 
21.12 	16A.641, subdivision 8, and 167.50, 
21.13 	subdivision 4.

21.14	Sec. 4. BOND SALE AUTHORIZATION.
 					
21.15 	To provide the money appropriated in this article from the bond proceeds account in the 
21.16 	trunk highway fund, the commissioner of management and budget shall sell and issue bonds 
21.17 	of the state in an amount up to $30,030,000 in the manner, upon the terms, and with the 
21.18 	effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota 
21.19 	Constitution, article XIV, section 11, at the times and in the amounts requested by the 
21.20 	commissioner of transportation. The proceeds of the bonds, except accrued interest and any 
21.21 	premium received from the sale of the bonds, must be deposited in the bond proceeds account 
21.22 	in the trunk highway fund.

21.23 	ARTICLE 3
21.24 	TRANSPORTATION POLICY

21.25 	Section 1. Minnesota Statutes 2022, section 13.6905, is amended by adding a subdivision 
21.26 	to read:
21.27 		Subd. 38.Traffic safety camera data. Data related to traffic safety cameras are governed 
21.28 	by section 169.147, subdivisions 14 to 16.

21.29 	Sec. 2. Minnesota Statutes 2022, section 13.824, subdivision 1, is amended to read:
21.30 		Subdivision 1.Definition Definitions. As used in (a) For purposes of this section, the 
21.31 	following terms have the meanings given.
22.1 	(b) "Automated license plate reader" means an electronic device mounted on a law 
22.2 	enforcement vehicle or positioned in a stationary location that is capable of recording data 
22.3 	on, or taking a photograph of, a vehicle or its license plate and comparing the collected data 
22.4 	and photographs to existing law enforcement databases for investigative purposes. Automated 
22.5 	license plate reader includes a device that is owned or operated by a person who is not a 
22.6 	government entity to the extent that data collected by the reader are shared with a law 
22.7 	enforcement agency. Automated license plate reader does not include a traffic safety camera 
22.8 	system.
22.9 	(c) "Traffic safety camera system" has the meaning given in section 169.011, subdivision 
22.10 	85a.

22.11 	Sec. 3. Minnesota Statutes 2022, section 13.824, is amended by adding a subdivision to 
22.12 	read:
22.13 		Subd. 2a.Limitations; certain camera systems. A person must not use a traffic safety 
22.14 	camera system for purposes of this section.

22.15 	Sec. 4. [16B.356] DEFINITIONS.
22.16 		Subdivision 1.Terms. For the purposes of sections 16B.356 to 16B.359, the terms 
22.17 	defined in this section have the meanings given.
22.18 		Subd. 2.Council. "Council" means the Minnesota Advisory Council on Infrastructure 
22.19 	established in section 16B.357.
22.20 		Subd. 3.Infrastructure. "Infrastructure" means physical structures and facilities, 
22.21 	including but not limited to property, lands, buildings, and other assets of a capital nature. 
22.22 	The term includes infrastructure related to agriculture, commerce, communications, economic 
22.23 	development, energy, food, health, housing, natural resources, public safety, transportation, 
22.24 	drinking water, stormwater, and wastewater.

22.25 	Sec. 5. [16B.357] MINNESOTA ADVISORY COUNCIL ON INFRASTRUCTURE.
22.26 		Subdivision 1.Establishment; purpose. (a) The Minnesota Advisory Council on 
22.27 	Infrastructure is established as provided under sections 16B.356 to 16B.359.
22.28 	(b) The purpose of the council is to define and maintain a vision for the future of 
22.29 	Minnesota's infrastructure that provides for its proper management, coordination, and 
22.30 	investment.
22.31 		Subd. 2.Voting membership. The council consists of the following voting members:
23.1 	(1) two members appointed by the governor;
23.2 	(2) two members appointed by the senate majority leader;
23.3 	(3) two members appointed by the senate minority leader;
23.4 	(4) two members appointed by the speaker of the house;
23.5 	(5) two members appointed by the house minority leader; and
23.6 	(6) one member appointed by the Indian Affairs Council.
23.7 		Subd. 3.Nonvoting membership. The council consists of the following nonvoting 
23.8 	members:
23.9 	(1) the commissioner of administration;
23.10 	(2) the commissioner of agriculture;
23.11 	(3) the commissioner of commerce;
23.12 	(4) the commissioner of employment and economic development;
23.13 	(5) the commissioner of health;
23.14 	(6) the commissioner of management and budget;
23.15 	(7) the commissioner of natural resources;
23.16 	(8) the commissioner of the Pollution Control Agency;
23.17 	(9) the commissioner of transportation;
23.18 	(10) the commissioner of Iron Range resources and rehabilitation;
23.19 	(11) the chair of the Metropolitan Council;
23.20 	(12) the chair of the Board of Water and Soil Resources;
23.21 	(13) the executive director of the Minnesota Public Facilities Authority;
23.22 	(14) the chancellor of Minnesota State Colleges and Universities; and
23.23 	(15) the president of the University of Minnesota.
23.24 		Subd. 4.Voting members; appointment requirements. (a) An appointing authority 
23.25 	under subdivision 2 may only appoint an individual who has direct and practical expertise 
23.26 	and experience, whether from the public or private sector, in any of the following:
24.1 	(1) asset management in one or more of the areas of planning, design, construction, 
24.2 	management, or operations and maintenance, for: (i) drinking water; (ii) wastewater; (iii) 
24.3 	stormwater; (iv) transportation; (v) energy; or (vi) communications;
24.4 	(2) financial management and procurement; or
24.5 	(3) regional asset management across jurisdictions and infrastructure sectors.
24.6 	(b) Each appointing authority under subdivision 2, clauses (1) to (5), must appoint one 
24.7 	individual who resides in a metropolitan county, as defined in section 473.121, subdivision 
24.8 	4, and one individual who resides outside of a metropolitan county.
24.9 	(c) No current legislator may be appointed to the council.
24.10 	(d) Prior to making appointments, the appointing authorities under subdivision 2 must 
24.11 	coordinate and provide for:
24.12 	(1) geographic representation throughout the state;
24.13 	(2) representation for all major types of infrastructure assets; and
24.14 	(3) representation from the public and private sectors.
24.15 		Subd. 5.Voting members; recommendations for appointment. Each appointing 
24.16 	authority under subdivision 2 must acknowledge and give consideration to appointment 
24.17 	recommendations made by interested stakeholders, including but not limited to:
24.18 	(1) the Association of Minnesota Counties;
24.19 	(2) the League of Minnesota Cities;
24.20 	(3) the Coalition of Greater Minnesota Cities;
24.21 	(4) the Minnesota Association of Townships;
24.22 	(5) the Minnesota Chapter of the American Public Works Association;
24.23 	(6) the Associated General Contractors of Minnesota;
24.24 	(7) a labor union representing the building trades;
24.25 	(8) a public utility;
24.26 	(9) the Minnesota Municipal Utilities Association;
24.27 	(10) the Minnesota Chamber of Commerce;
24.28 	(11) the Minnesota section of the American Water Works Association;
24.29 	(12) the Minnesota Rural Water Association; and
25.1 	(13) the Minnesota Rural Electric Association.
25.2 		Subd. 6.Nonvoting members; delegation. (a) Notwithstanding section 15.06, 
25.3 	subdivision 6, an individual specified under subdivision 3 may appoint a designee to serve 
25.4 	on the council only as provided in this subdivision.
25.5 	(b) An individual specified under subdivision 3 may appoint a designee who serves on 
25.6 	an ongoing basis to exercise the powers and duties as a nonvoting council member under 
25.7 	this section. The designation must be made by written order, filed with the secretary of state. 
25.8 	The designee must be a public employee who is:
25.9 	(1) a deputy commissioner or deputy director;
25.10 	(2) an assistant commissioner;
25.11 	(3) an immediate subordinate of the appointing authority;
25.12 	(4) a director of a relevant office; or
25.13 	(5) if the appointing authority is the chair of a board or council specified under subdivision 
25.14 	3, another member of that board or council.
25.15 		Subd. 7.Officers. (a) The council must elect from among its voting members a chair, 
25.16 	or cochairs, and vice-chair. As necessary, the council may elect other council members to 
25.17 	serve as officers.
25.18 	(b) The chair is responsible for convening meetings of the council and setting each 
25.19 	meeting agenda.
25.20 		Subd. 8.Council actions. (a) A majority of the council, including voting and nonvoting 
25.21 	members and excluding vacancies, is a quorum.
25.22 	(b) The council may conduct business as provided under section 13D.015.
25.23 		Subd. 9.Compensation; terms; removal; vacancies. The compensation, membership 
25.24 	terms, filling of vacancies, and removal of members on the council are as provided in section 
25.25 	15.0575.
25.26 		Subd. 10.Open Meeting Law. The council is subject to the Minnesota Open Meeting 
25.27 	Law under chapter 13D.
25.28 		Subd. 11.Data practices. The council is subject to the Minnesota Data Practices Act 
25.29 	under chapter 13.

26.1 	Sec. 6. [16B.358] POWERS; RESPONSIBILITIES AND DUTIES.
26.2 		Subdivision 1.General powers. The council has the nonregulatory powers necessary 
26.3 	to carry out its responsibilities and duties specified by law.
26.4 		Subd. 2.General responsibilities. (a) The council is responsible for activities in a 
26.5 	nonregulatory capacity and in coordination with stakeholders to identify and recommend 
26.6 	best practices that:
26.7 	(1) preserve and extend the longevity of Minnesota's public and privately owned 
26.8 	infrastructure; and
26.9 	(2) provide for effective and efficient management of infrastructure.
26.10 	(b) Unless specifically provided otherwise, nothing in sections 16B.356 to 16B.359 
26.11 	requires transfer of personnel, specific responsibilities, or administrative functions from a 
26.12 	department or agency to the council.
26.13 		Subd. 3.Duties. The duties of the council are to:
26.14 	(1) identify approaches to enhance and expedite infrastructure coordination across 
26.15 	jurisdictions, agencies, state and local government, and public and private sectors, including 
26.16 	in planning, design, engineering, construction, maintenance, and operations;
26.17 	(2) analyze methods to improve efficiency and the use of resources related to (i) public 
26.18 	infrastructure, and (ii) public asset management practices;
26.19 	(3) identify opportunities to reduce duplication in infrastructure projects and asset 
26.20 	management;
26.21 	(4) identify barriers and gaps in effective asset management;
26.22 	(5) identify objectives and strategies that enhance the longevity and adaptability of 
26.23 	infrastructure throughout the state;
26.24 	(6) develop advisory recommendations, if any, related to the responsibilities and duties 
26.25 	specified under this section, including to state agencies for programs, policies, and practices; 
26.26 	and
26.27 	(7) implement the requirements under sections 16B.356 to 16B.359.
26.28 		Subd. 4.Asset managers program. The council must develop and recommend a plan 
26.29 	for a statewide asset managers program that provides for:
26.30 	(1) identification, exchange, and distribution of (i) information on existing asset 
26.31 	management tools and resources, and (ii) best practices on infrastructure management;
27.1 	(2) training for infrastructure owners and asset managers; and
27.2 	(3) coordination and collaboration among infrastructure owners and asset managers.
27.3 		Subd. 5.Administrative support. The commissioner must provide the council with 
27.4 	suitable space to maintain an office, hold meetings, and keep records. The commissioner 
27.5 	must provide administrative staff and information technology resources to the council as 
27.6 	necessary for the expeditious conduct of the council's duties and responsibilities.
27.7 		Subd. 6.Report. By December 15 annually, the council must submit a report to the 
27.8 	governor and the legislative committees with jurisdiction over capital investment, climate, 
27.9 	economic development, energy, and transportation. At a minimum, the report must:
27.10 	(1) summarize the activities of the council;
27.11 	(2) provide an overview for each of the duties and requirements under sections 16B.356 
27.12 	to 16B.359;
27.13 	(3) identify any barriers and constraints related to activities of the council; and
27.14 	(4) provide any recommendations of the council.

27.15 	Sec. 7. [16B.359] PERSONNEL.
27.16 		Subdivision 1.Executive director. (a) The commissioner must hire an executive director 
27.17 	in the classified service, with the advice of the council. The executive director is the principal 
27.18 	administrative officer for the council. The executive director is not an ex officio member 
27.19 	of the council.
27.20 	(b) The executive director must have (1) leadership or management experience, and (2) 
27.21 	training and experience in public works or asset management.
27.22 	(c) The executive director must perform the duties as specified by the council to manage 
27.23 	and implement the requirements of sections 16B.356 to 16B.359.
27.24 		Subd. 2.Staffing. (a) The executive director must:
27.25 	(1) hire any employees on the basis of merit and fitness that the executive director 
27.26 	considers necessary to discharge the functions of the office; and
27.27 	(2) prescribe the powers and duties of an employee.
27.28 	(b) The executive director may:
27.29 	(1) hire a deputy director and other staff; and
28.1 	(2) delegate the powers, duties, and responsibilities of the executive director to employees, 
28.2 	under conditions prescribed by the executive director.

28.3 	Sec. 8. Minnesota Statutes 2023 Supplement, section 123B.935, subdivision 1, is amended 
28.4 	to read:
28.5 		Subdivision 1.Training required. (a) Each district must provide public school pupils 
28.6 	enrolled in kindergarten through grade 3 with age-appropriate active transportation safety 
28.7 	training. At a minimum, the training must include pedestrian safety, including crossing 
28.8 	roads.
28.9 	(b) Each district must provide public school pupils enrolled in grades 4 through 8 with 
28.10 	age-appropriate active transportation safety training. At a minimum, the training must 
28.11 	include:
28.12 	(1) pedestrian safety, including crossing roads safely using the searching left, right, left 
28.13 	for vehicles in traffic technique; and
28.14 	(2) bicycle safety, including relevant traffic laws, use and proper fit of protective 
28.15 	headgear, bicycle parts and safety features, and safe biking techniques.; and
28.16 	(3) electric-assisted bicycle safety, including that a person under the age of 15 is not 
28.17 	allowed to operate an electric-assisted bicycle.
28.18 	(c) A nonpublic school may provide nonpublic school pupils enrolled in kindergarten 
28.19 	through grade 8 with training as specified in paragraphs (a) and (b).

28.20 	Sec. 9. Minnesota Statutes 2022, section 134A.09, subdivision 2a, is amended to read:
28.21 		Subd. 2a.Petty misdemeanor cases and criminal convictions; fee assessment. (a) In 
28.22 	Hennepin County and Ramsey County, the district court administrator or a designee may, 
28.23 	upon the recommendation of the board of trustees and by standing order of the judges of 
28.24 	the district court, include in the costs or disbursements assessed against a defendant convicted 
28.25 	in the district court of the violation of a statute or municipal ordinance, a county law library 
28.26 	fee. This fee may be collected in all petty misdemeanor cases and criminal prosecutions in 
28.27 	which, upon conviction, the defendant may be subject to the payment of the costs or 
28.28 	disbursements in addition to a fine or other penalty. When a defendant is convicted of more 
28.29 	than one offense in a case, the county law library fee shall be imposed only once in that 
28.30 	case.
28.31 	(b) Beginning August 1, 2025, the law library fee does not apply to a citation issued 
28.32 	pursuant to sections 169.06, subdivision 10, and 169.14, subdivision 13.

29.1 	Sec. 10. Minnesota Statutes 2022, section 134A.10, subdivision 3, is amended to read:
29.2 		Subd. 3.Petty misdemeanor cases and criminal convictions; fee assessment. (a) The 
29.3 	judge of district court may, upon the recommendation of the board of trustees and by standing 
29.4 	order, include in the costs or disbursements assessed against a defendant convicted in the 
29.5 	district court of the violation of any statute or municipal ordinance, in all petty misdemeanor 
29.6 	cases and criminal prosecutions in which, upon conviction, the defendant may be subject 
29.7 	to the payment of the costs or disbursements in addition to a fine or other penalty a county 
29.8 	law library fee. When a defendant is convicted of more than one offense in a case, the county 
29.9 	law library fee shall be imposed only once in that case. The item of costs or disbursements 
29.10 	may not be assessed for any offense committed prior to the establishment of the county law 
29.11 	library.
29.12 	(b) Beginning August 1, 2025, the law library fee does not apply to citations issued 
29.13 	pursuant to sections 169.06, subdivision 10, and 169.14, subdivision 13.

29.14 	Sec. 11. Minnesota Statutes 2022, section 161.089, is amended to read:
29.15 	161.089 REPORT ON DEDICATED FUND EXPENDITURES.
29.16 	By January 15 of each odd-numbered year, the commissioners of transportation and 
29.17 	public safety, in consultation with the commissioner of management and budget, must jointly 
29.18 	submit a report to the chairs and ranking minority members of the legislative committees 
29.19 	with jurisdiction over transportation finance. The report must:
29.20 	(1) list detailed expenditures and transfers from the trunk highway fund and highway 
29.21 	user tax distribution fund for the previous two fiscal years and must include information on 
29.22 	the purpose of each expenditure. The report must;
29.23 	(2) list summary expenditures and transfers from each fund other than the trunk highway 
29.24 	fund or highway user tax distribution fund for each departmental division, office, or program 
29.25 	for which funds are listed under clause (1);
29.26 	(3) include for each expenditure from the trunk highway fund an estimate of the 
29.27 	percentage of activities performed or purchases made with that expenditure that are not for 
29.28 	trunk highway purposes; and
29.29 	(4) include a separate section that lists detailed expenditures and transfers from the trunk 
29.30 	highway fund and highway user tax distribution fund for cybersecurity.

30.1 	Sec. 12. [161.1258] RUMBLE STRIPS.
30.2 	(a) The commissioner must maintain transverse rumble strips in association with each 
30.3 	stop sign that is located (1) on a trunk highway segment with a speed limit of at least 55 
30.4 	miles per hour, and (2) outside the limits of a statutory or home rule charter city.
30.5 	(b) Prior to installation of rumble strips at a new location, the commissioner must provide 
30.6 	a notification to residences adjacent to the location.
30.7 	(c) The commissioner must meet the requirements under paragraph (a) at each applicable 
30.8 	location by the earlier of August 1, 2034, or the date of substantial completion of any 
30.9 	construction, resurfacing, or reconditioning at the location.
30.10 	(d) The requirements under paragraph (a) do not apply to a location in which there is at 
30.11 	least one residence within 750 feet.

30.12 	EFFECTIVE DATE. This section is effective August 1, 2024, for road construction, 
30.13 	resurfacing, or reconditioning projects on or after that date.

30.14 	Sec. 13. Minnesota Statutes 2022, section 161.14, is amended by adding a subdivision to 
30.15 	read:
30.16 		Subd. 107.Gopher Gunners Memorial Bridge. (a) The bridge on marked Trunk 
30.17 	Highway 55 and marked Trunk Highway 62 over the Minnesota River, commonly known 
30.18 	as the Mendota Bridge, is designated as "Gopher Gunners Memorial Bridge." 
30.19 	Notwithstanding section 161.139, the commissioner must adopt a suitable design to mark 
30.20 	the bridge and erect appropriate signs.
30.21 	(b) The adjutant general of the Department of Military Affairs must reimburse the 
30.22 	commissioner of transportation for costs incurred under this subdivision.

30.23 	Sec. 14. Minnesota Statutes 2023 Supplement, section 161.178, is amended to read:
30.24 	161.178 TRANSPORTATION GREENHOUSE GAS EMISSIONS IMPACT 
30.25 	ASSESSMENT.
30.26 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
30.27 	the meanings given.
30.28 	(b) "Applicable entity" means the commissioner with respect to a capacity expansion
30.29 	project or portfolio for inclusion in the state transportation improvement program or a 
30.30 	metropolitan planning organization with respect to a capacity expansion project or portfolio
30.31 	for inclusion in the appropriate metropolitan transportation improvement program.
31.1 	(c) "Assessment" means the capacity expansion impact assessment under this section.
31.2 	(d) "Capacity expansion project" means a project for trunk highway construction or 
31.3 	reconstruction that:
31.4 	(1) is a major highway project, as defined in section 174.56, subdivision 1, paragraph 
31.5 	(b); and
31.6 	(2) adds highway traffic capacity or provides for grade separation of motor vehicle traffic 
31.7 	at an intersection, excluding auxiliary lanes with a length of less than 2,500 feet.
31.8 	(e) "Greenhouse gas emissions" includes those emissions described in section 216H.01, 
31.9 	subdivision 2.
31.10 		Subd. 2.Project or portfolio assessment. (a) Prior to inclusion of a capacity expansion
31.11 	project or portfolio in the state transportation improvement program or in a metropolitan 
31.12 	transportation improvement program, the applicable entity must perform a capacity expansion
31.13 	an impact assessment of the project or portfolio. Following the assessment, the applicable 
31.14 	entity must determine if the project conformsor portfolio is proportionally in conformance
31.15 	with:
31.16 	(1) the greenhouse gas emissions reduction targets under section 174.01, subdivision 3; 
31.17 	and
31.18 	(2) the vehicle miles traveled reduction targets established in the statewide multimodal 
31.19 	transportation plan under section 174.03, subdivision 1a.
31.20 	(b) If the applicable entity determines that the capacity expansion project or portfolio is 
31.21 	not in conformance with paragraph (a), the applicable entity must:
31.22 	(1) alter the scope or design of the project or any number of projects, add or remove one 
31.23 	or more projects from the portfolio, or undertake a combination, and subsequently perform 
31.24 	a revised assessment that meets the requirements under this section;
31.25 	(2) interlink sufficient impact mitigation as provided in subdivision 4; or
31.26 	(3) halt project development and disallow inclusion of the project or portfolio in the 
31.27 	appropriate transportation improvement program.
31.28 		Subd. 2a.Applicable projects. (a) For purposes of this section:
31.29 	(1) prior to the date established under paragraph (b), a project or portfolio is a capacity 
31.30 	expansion project; and
32.1 	(2) on and after the date established under paragraph (b), a project or portfolio is a 
32.2 	capacity expansion project or a collection of trunk highway and multimodal projects for a 
32.3 	fiscal year and specific region.
32.4 	(b) The commissioner must establish a date to implement impact assessments on the 
32.5 	basis of assessing a portfolio or program of projects instead of on a project-by-project basis. 
32.6 	The date must be:
32.7 	(1) August 1, 2027, which applies to projects that first enter the appropriate transportation 
32.8 	improvement program for fiscal year 2031 or a subsequent year; or
32.9 	(2) as established by the commissioner, if the commissioner:
32.10 	(i) consults with metropolitan planning organizations;
32.11 	(ii) prioritizes and makes reasonable efforts to meet the date under clause (1) or an earlier 
32.12 	date;
32.13 	(iii) determines that the date established under this clause is the earliest practicable in 
32.14 	which the necessary models and tools are sufficient for analysis under this section; and
32.15 	(iv) submits a notice to the chairs and ranking minority members of the legislative 
32.16 	committees and divisions with jurisdiction over transportation policy and finance, which 
32.17 	must identify the date established and summarize the efforts under item (ii) and the 
32.18 	determination under item (iii).
32.19 		Subd. 3.Assessment requirements. (a) The commissioner must establish a process to 
32.20 	perform capacity expansion impact assessments. An assessment must provide for the 
32.21 	determination under subdivision 2. implement the requirements under this section, which 
32.22 	includes:
32.23 	(1) any necessary policies, procedures, manuals, and technical specifications;
32.24 	(2) procedures to perform an impact assessment that provide for the determination under 
32.25 	subdivision 2;
32.26 	(3) in consultation with the technical advisory committee under section 161.1782, criteria 
32.27 	for identification of a capacity expansion project; and
32.28 	(4) related data reporting from local units of government on local multimodal 
32.29 	transportation systems and local project impacts on greenhouse gas emissions and vehicle 
32.30 	miles traveled.
32.31 	(b) Analysis under an assessment must include but is not limited to estimates resulting 
32.32 	from the a project or portfolio for the following:
33.1 	(1) greenhouse gas emissions over a period of 20 years; and
33.2 	(2) a net change in vehicle miles traveled for the affected network.; and
33.3 	(3) impacts to trunk highways and related impacts to local road systems, on a local, 
33.4 	regional, or statewide basis, as appropriate.
33.5 		Subd. 4.Impact mitigation; interlinking. (a) To provide for impact mitigation, the 
33.6 	applicable entity must interlink the capacity expansion project or portfolio as provided in 
33.7 	this subdivision.
33.8 	(b) Impact mitigation is sufficient under subdivision 2, paragraph (b), if the capacity 
33.9 	expansion project or portfolio is interlinked to mitigation offset actions such that the total 
33.10 	greenhouse gas emissions reduction from the mitigation offset actions, after accounting for 
33.11 	the greenhouse gas emissions otherwise resulting from the capacity expansion project or 
33.12 	portfolio, is consistent with meeting the targets specified under subdivision 2, paragraph 
33.13 	(a). Each comparison under this paragraph must be performed over equal comparison periods.
33.14 	(c) A mitigation An offset action consists of a project, program, or operations 
33.15 	modification, or mitigation plan in one or more of the following areas:
33.16 	(1) transit expansion, including but not limited to regular route bus, arterial bus rapid 
33.17 	transit, highway bus rapid transit, rail transit, and intercity passenger rail;
33.18 	(2) transit service improvements, including but not limited to increased service level, 
33.19 	transit fare reduction, and transit priority treatments;
33.20 	(3) active transportation infrastructure;
33.21 	(4) micromobility infrastructure and service, including but not limited to shared vehicle 
33.22 	services;
33.23 	(5) transportation demand management, including but not limited to vanpool and shared 
33.24 	vehicle programs, remote work, and broadband access expansion;
33.25 	(6) parking management, including but not limited to parking requirements reduction 
33.26 	or elimination and parking cost adjustments;
33.27 	(7) land use, including but not limited to residential and other density increases, mixed-use 
33.28 	development, and transit-oriented development;
33.29 	(8) infrastructure improvements related to traffic operations, including but not limited 
33.30 	to roundabouts and reduced conflict intersections; and
34.1 	(9) natural systems, including but not limited to prairie restoration, reforestation, and 
34.2 	urban green space; and
34.3 	(10) as specified by the commissioner in the manner provided under paragraph (e).
34.4 	(d) A mitigation An offset action may be identified as interlinked to the capacity 
34.5 	expansion project or portfolio if:
34.6 	(1) there is a specified project, program, or modification, or mitigation plan;
34.7 	(2) the necessary funding sources are identified and sufficient amounts are committed;
34.8 	(3) the mitigation is localized as provided in subdivision 5; and
34.9 	(4) procedures are established to ensure that the mitigation action remains in substantially 
34.10 	the same form or a revised form that continues to meet the calculation under paragraph (b).
34.11 	(e) The commissioner may authorize additional offset actions under paragraph (c) if:
34.12 	(1) the offset action is reviewed and recommended by the technical advisory committee 
34.13 	under section 161.1782; and
34.14 	(2) the commissioner determines that the offset action is directly related to reduction in 
34.15 	the transportation sector of greenhouse gas emissions or vehicle miles traveled.
34.16 		Subd. 5.Impact mitigation; localization. (a) A mitigation An offset action under 
34.17 	subdivision 4 must be localized in the following priority order:
34.18 	(1) if the offset action is for one project, within or associated with at least one of the 
34.19 	communities impacted by the capacity expansion project;
34.20 	(2) if clause (1) does not apply or there is not a reasonably feasible location under clause 
34.21 	(1), in areas of persistent poverty or historically disadvantaged communities, as measured 
34.22 	and defined in federal law, guidance, and notices of funding opportunity;
34.23 	(3) if there is not a reasonably feasible location under clauses (1) and (2), in the region 
34.24 	of the capacity expansion project or portfolio; or
34.25 	(4) if there is not a reasonably feasible location under clauses (1) to (3), on a statewide 
34.26 	basis.
34.27 	(b) The applicable entity must include an explanation regarding the feasibility and 
34.28 	rationale for each mitigation action located under paragraph (a), clauses (2) to (4).
34.29 		Subd. 6.Public information. The commissioner must publish information regarding 
34.30 	capacity expansion impact assessments on the department's website. The information must 
34.31 	include:
35.1 	(1) for each project evaluated separately under this section, identification of capacity 
35.2 	expansion projects the project; and
35.3 	(2) for each project evaluated separately, a summary that includes an overview of the 
35.4 	expansion impact assessment, the impact determination by the commissioner, and project 
35.5 	disposition, including a review of any mitigation offset actions.;
35.6 	(3) for each portfolio of projects, an overview of the projects, the impact determination 
35.7 	by the commissioner, and a summary of any offset actions;
35.8 	(4) a review of any interpretation of or additions to offset actions under subdivision 4;
35.9 	(5) identification of the date established by the commissioner under subdivision 2a, 
35.10 	paragraph (b); and
35.11 	(6) a summary of the activities of the technical advisory committee under section 
35.12 	161.1782, including but not limited to any findings or recommendations made by the advisory 
35.13 	committee.
35.14 		Subd. 7.Safety and well-being. The requirements of this section are in addition to and 
35.15 	must not supplant the safety and well-being goals established under section 174.01, 
35.16 	subdivision 2, clauses (1) and (2).
35.17 		Subd. 8.Transportation impact assessment and mitigation account. (a) A 
35.18 	transportation impact assessment and mitigation account is established in the special revenue 
35.19 	fund. The account consists of funds provided by law and any other money donated, allotted, 
35.20 	transferred, or otherwise provided to the account.
35.21 	(b) Money in the account is annually appropriated to the commissioner and must only 
35.22 	be expended on activities described or required under this section. In determining 
35.23 	expenditures from the account, the commissioner must include prioritization for offset 
35.24 	actions interlinked to trunk highway projects that reduce traffic fatalities or severe injuries.

35.25 	EFFECTIVE DATE. This section is effective February 1, 2025, except that subdivision 
35.26 	8 is effective July 1, 2024. This section does not apply to a capacity expansion project that 
35.27 	was either included in the state transportation improvement program or has been submitted 
35.28 	for approval of the geometric layout before February 1, 2025.

35.29 	Sec. 15. [161.1782] TRANSPORTATION IMPACT ASSESSMENT; TECHNICAL 
35.30 	ADVISORY COMMITTEE.
35.31 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
35.32 	the meanings given.
36.1 	(b) "Advisory committee" means the technical advisory committee established in this 
36.2 	section.
36.3 	(c) "Project or portfolio" is as provided in section 161.178.
36.4 		Subd. 2.Establishment. The commissioner must establish a technical advisory committee 
36.5 	to assist in implementation review related to the requirements under section 161.178.
36.6 		Subd. 3.Membership; appointments. The advisory committee is composed of the 
36.7 	following members:
36.8 	(1) one member from the Department of Transportation, appointed by the commissioner 
36.9 	of transportation;
36.10 	(2) one member from the Pollution Control Agency, appointed by the commissioner of 
36.11 	the Pollution Control Agency;
36.12 	(3) one member from the Metropolitan Council, appointed by the chair of the 
36.13 	Metropolitan Council;
36.14 	(4) one member from the Center for Transportation Studies, appointed by the president 
36.15 	of the University of Minnesota;
36.16 	(5) one member representing metropolitan planning organizations outside the metropolitan 
36.17 	area, as defined in section 473.121, subdivision 2, appointed by the Association of 
36.18 	Metropolitan Planning Organizations; and
36.19 	(6) up to four members who are not employees of the state, with no more than two who 
36.20 	are employees of a political subdivision, appointed by the commissioner of transportation.
36.21 		Subd. 4.Membership; requirements. (a) To be eligible for appointment to the advisory 
36.22 	committee, an individual must have experience or expertise sufficient to provide assistance 
36.23 	in implementation or technical review related to the requirements under section 161.178. 
36.24 	Each appointing authority must consider appointment of individuals with expertise in travel 
36.25 	demand modeling, emissions modeling, traffic forecasting, land use planning, or 
36.26 	transportation-related greenhouse gas emissions assessment and analysis. In appointing the 
36.27 	members under subdivision 3, clause (6), the commissioner must also consider technical 
36.28 	expertise in other relevant areas, which may include but is not limited to public health or 
36.29 	natural systems management.
36.30 	(b) Members of the advisory committee serve at the pleasure of the appointing authority. 
36.31 	Vacancies must be filled by the appointing authority.
37.1 		Subd. 5.Duties. The advisory committee must assist the commissioner in implementation 
37.2 	of the requirements under section 161.178, including to:
37.3 	(1) perform technical review and validation of processes and methodologies used for 
37.4 	impact assessment and impact mitigation;
37.5 	(2) review and make recommendations on:
37.6 	(i) impact assessment requirements;
37.7 	(ii) models and tools for impact assessment;
37.8 	(iii) methods to determine sufficiency of impact mitigation;
37.9 	(iv) procedures for interlinking a project or portfolio to impact mitigation; and
37.10 	(v) reporting and data collection;
37.11 	(3) advise on the approach used to determine the area of influence for a project or portfolio 
37.12 	for a geographic or transportation network area;
37.13 	(4) develop recommendations on any clarifications, modifications, or additions to the 
37.14 	offset actions authorized under section 161.178, subdivision 4; and
37.15 	(5) perform other analyses or activities as requested by the commissioner.
37.16 		Subd. 6.Administration. (a) The commissioner must provide administrative support 
37.17 	to the advisory committee. Upon request, the commissioner must provide information and 
37.18 	technical support to the advisory committee.
37.19 	(b) Members of the advisory committee are not eligible for compensation under this 
37.20 	section.
37.21 	(c) The advisory committee is subject to the Minnesota Data Practices Act under chapter 
37.22 	13 and to the Minnesota Open Meeting Law under chapter 13D.

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

37.24 	Sec. 16. Minnesota Statutes 2022, section 161.3203, subdivision 4, is amended to read:
37.25 		Subd. 4.Reports Report. (a) By September 1 of each year, the commissioner shall 
37.26 	provide, no later than September 1, an annual written must submit a report to the legislature, 
37.27 	in compliance with sections 3.195 and 3.197, and shall submit the report to the chairs and 
37.28 	ranking minority members of the senate and house of representatives legislative committees 
37.29 	having with jurisdiction over transportation policy and finance.
38.1 	(b) The report must list all privatization transportation contracts within the meaning of 
38.2 	this section that were executed or performed, whether wholly or in part, in the previous 
38.3 	fiscal year. The report must identify, with respect to each contract:
38.4 	(1) the contractor;
38.5 	(2) contract amount;
38.6 	(3) duration;
38.7 	(4) work, provided or to be provided;
38.8 	(5) the comprehensive estimate derived under subdivision 3, paragraph (a);
38.9 	(6) the comprehensive estimate derived under subdivision 3, paragraph (b);
38.10 	(7) the actual cost to the agency of the contractor's performance of the contract; and
38.11 	(8) for contracts of at least $250,000, a statement containing the commissioner's 
38.12 	determinations under subdivision 3, paragraph (c).
38.13 	(c) The report must collect aggregate data on each of the commissioner's district offices 
38.14 	and the bridge office on barriers and challenges to the reduction of transportation contract 
38.15 	privatization. The aggregate data must identify areas of concern related to transportation 
38.16 	contract privatization and include information on:
38.17 	(1) recruitment and retention of staff;
38.18 	(2) expertise gaps;
38.19 	(3) access to appropriate equipment; and
38.20 	(4) the effects of geography, demographics, and socioeconomic data on transportation 
38.21 	contract privatization rates.

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

38.23 	Sec. 17. Minnesota Statutes 2022, section 161.45, is amended by adding a subdivision to 
38.24 	read:
38.25 		Subd. 4.High voltage transmission; placement in right-of-way. (a) For purposes of 
38.26 	this subdivision and subdivisions 5 to 7, "high voltage transmission line" has the meaning 
38.27 	given in section 216E.01, subdivision 4.
38.28 	(b) Notwithstanding subdivision 1, paragraph (a), high voltage transmission lines under 
38.29 	the laws of this state or the ordinance of any city or county may be constructed, placed, or 
38.30 	maintained across or along any trunk highway, including an interstate highway and a trunk 
39.1 	highway that is an expressway or a freeway, except as deemed necessary by the commissioner 
39.2 	of transportation to protect public safety or ensure the proper function of the trunk highway 
39.3 	system.
39.4 	(c) If the commissioner denies a high voltage electric line colocation request, the reasons 
39.5 	for the denial must be submitted for review within 90 days of the commissioner's denial to 
39.6 	the chairs and ranking minority members of the legislative committees with jurisdiction 
39.7 	over energy and transportation, the Public Utilities Commission executive secretary, and 
39.8 	the commissioner of commerce.

39.9 	EFFECTIVE DATE. This section is effective the day following final enactment and 
39.10 	applies to colocation requests for high voltage transmission lines on or after that date.

39.11 	Sec. 18. Minnesota Statutes 2022, section 161.45, is amended by adding a subdivision to 
39.12 	read:
39.13 		Subd. 5.High voltage transmission; coordination required. Upon written request, 
39.14 	the commissioner must engage in coordination activities with a utility or transmission line 
39.15 	developer to review requested highway corridors for potential permitted locations for 
39.16 	transmission lines. The commissioner must assign a project coordinator within 30 days of 
39.17 	receiving the written request. The commissioner must share all known plans with affected 
39.18 	utilities or transmission line developers on potential future projects in the highway corridor 
39.19 	if the potential highway project impacts the placement or siting of high voltage transmission 
39.20 	lines.

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

39.22 	Sec. 19. Minnesota Statutes 2022, section 161.45, is amended by adding a subdivision to 
39.23 	read:
39.24 		Subd. 6.High voltage transmission; constructability report; advance notice.  (a) If 
39.25 	the commissioner and a utility or transmission line developer identify a permittable route 
39.26 	along a trunk highway corridor for possible colocation of transmission lines, a constructability 
39.27 	report must be prepared by the utility or transmission line developer in consultation with 
39.28 	the commissioner. A constructability report developed under this subdivision must be used 
39.29 	by both parties to plan and approve colocation projects.
39.30 	(b) A constructability report developed under this section between the commissioner 
39.31 	and the parties seeking colocation must include terms and conditions for building the 
39.32 	colocation project. Notwithstanding the requirements in subdivision 1, the report must be 
40.1 	approved by the commissioner and the party or parties seeking colocation prior to the 
40.2 	commissioner approving and issuing a permit for use of the trunk highway right-of-way.
40.3 	(c) A constructability report must include an agreed upon time frame for which there 
40.4 	may not be a request from the commissioner for relocation of the transmission line. If the 
40.5 	commissioner determines that relocation of a transmission line in the trunk highway 
40.6 	right-of-way is necessary, the commissioner, as much as practicable, must give a four-year 
40.7 	advance notice.
40.8 	(d) Notwithstanding the requirements of subdivision 7 and section 161.46, subdivision 
40.9 	2, if the commissioner requires the relocation of a transmission line in the interstate highway 
40.10 	right-of-way earlier than the agreed upon time frame in paragraph (c) in the constructability 
40.11 	report or provides less than a four-year notice of relocation in the agreed upon constructability 
40.12 	report, the commissioner is responsible for 75 percent of the relocation costs.

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

40.14 	Sec. 20. Minnesota Statutes 2022, section 161.45, is amended by adding a subdivision to 
40.15 	read:
40.16 		Subd. 7.High voltage transmission; relocation reimbursement prohibited. (a) A 
40.17 	high voltage transmission line that receives a route permit under chapter 216E on or after 
40.18 	July 1, 2024, is not eligible for relocation reimbursement under section 161.46, subdivision 
40.19 	2.
40.20 	(b) If the commissioner orders relocation of a high voltage transmission line that is 
40.21 	subject to paragraph (a):
40.22 	(1) a public utility, as defined in section 216B.02, subdivision 4, may recover its portion 
40.23 	of costs of relocating the line that the Public Utilities Commission deems prudently incurred 
40.24 	as a transmission cost adjustment pursuant to section 216B.16, subdivision 7b; and
40.25 	(2) a consumer-owned utility, as defined in section 216B.2402, subdivision 2, may 
40.26 	recover its portion of costs of relocating the line in any manner approved by its governing 
40.27 	board.

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

40.29 	Sec. 21. Minnesota Statutes 2022, section 161.46, subdivision 1, is amended to read:
40.30 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms shall
40.31 	have the meanings ascribed to them: given.
41.1 	(1) (b) "Utility" means all publicly, privately, and cooperatively owned systems for 
41.2 	supplying power, light, gas, telegraph, telephone, water, pipeline, or sewer service if such 
41.3 	systems be authorized by law to use public highways for the location of its facilities.
41.4 	(2) (c) "Cost of relocation" means the entire amount paid by such utility properly 
41.5 	attributable to such relocation after deducting therefrom any increase in the value of the 
41.6 	new facility and any salvage value derived from the old facility.
41.7 	(d) "High voltage transmission line" has the meaning given in section 216E.01, 
41.8 	subdivision 4.

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

41.10 	Sec. 22. Minnesota Statutes 2023 Supplement, section 161.46, subdivision 2, is amended 
41.11 	to read:
41.12 		Subd. 2.Relocation of facilities; reimbursement. (a) Whenever the commissioner shall 
41.13 	determine determines that the relocation of any utility facility is necessitated by the 
41.14 	construction of a project on the routes of federally aided state trunk highways, including 
41.15 	urban extensions thereof, which routes that are included within the National System of 
41.16 	Interstate Highways, the owner or operator of such the utility facility shall must relocate 
41.17 	the same utility facility in accordance with the order of the commissioner. After the 
41.18 	completion of such relocation the cost thereof shall be ascertained and paid by the state out 
41.19 	of trunk highway funds; provided, however, the amount to be paid by the state for such 
41.20 	reimbursement shall not exceed the amount on which the federal government bases its 
41.21 	reimbursement for said interstate system. Except as provided in section 161.45, subdivision 
41.22 	6, paragraph (d), or 7, upon the completion of relocation of a utility facility, the cost of 
41.23 	relocation must be ascertained and paid out of the trunk highway fund by the commissioner, 
41.24 	provided the amount paid by the commissioner for reimbursement to a utility does not 
41.25 	exceed the amount on which the federal government bases its reimbursement for the interstate 
41.26 	highway system.
41.27 	(b) Notwithstanding paragraph (a), on or after January 1, 2024, any entity that receives 
41.28 	a route permit under chapter 216E for a high-voltage transmission line necessary to 
41.29 	interconnect an electric power generating facility is not eligible for relocation reimbursement 
41.30 	unless the entity directly, or through its members or agents, provides retail electric service 
41.31 	in this state.

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

42.1 	Sec. 23. Minnesota Statutes 2022, section 162.02, is amended by adding a subdivision to 
42.2 	read:
42.3 		Subd. 4a.Location and establishment; limitations. The county state-aid highway 
42.4 	system must not include a segment of a county highway that is designated as a pedestrian 
42.5 	mall under chapter 430.

42.6 	Sec. 24. Minnesota Statutes 2022, section 162.081, subdivision 4, is amended to read:
42.7 		Subd. 4.Formula for distribution to towns; purposes. (a) Money apportioned to a 
42.8 	county from the town road account must be distributed to the treasurer of each town within 
42.9 	the county, according to a distribution formula adopted by the county board. The formula 
42.10 	must take into account each town's population and town road mileage, and other factors the 
42.11 	county board deems advisable in the interests of achieving equity among the towns. 
42.12 	Distribution of town road funds to each town treasurer must be made by March 1, annually, 
42.13 	or within 30 days after receipt of payment from the commissioner. Distribution of funds to 
42.14 	town treasurers in a county which has not adopted a distribution formula under this 
42.15 	subdivision must be made according to a formula prescribed by the commissioner by rule.
42.16 	(b) Money distributed to a town under this subdivision may be expended by the town 
42.17 	only for the construction, reconstruction, and gravel maintenance of town roads within the 
42.18 	town, including debt service for bonds issued by the town in accordance with chapter 475, 
42.19 	provided that the bonds are issued for a use allowable under this paragraph.

42.20 	Sec. 25. Minnesota Statutes 2022, section 162.09, is amended by adding a subdivision to 
42.21 	read:
42.22 		Subd. 6a.Location and establishment; limitations. The municipal state-aid street 
42.23 	system must not include a segment of a city street that is designated as a pedestrian mall 
42.24 	under chapter 430.

42.25 	Sec. 26. Minnesota Statutes 2022, section 162.145, subdivision 5, is amended to read:
42.26 		Subd. 5.Use of funds. (a) Funds distributed under this section are available only for 
42.27 	construction and maintenance of roads located within the city, including:
42.28 	(1) land acquisition, environmental analysis, design, engineering, construction, 
42.29 	reconstruction, and maintenance;
42.30 	(2) road projects partially located within the city;
42.31 	(3) projects on county state-aid highways located within the city; and
43.1 	(4) cost participation on road projects under the jurisdiction of another unit of 
43.2 	government.; and
43.3 	(5) debt service for obligations issued by the city in accordance with chapter 475, provided 
43.4 	that the obligations are issued for a use allowable under this section.
43.5 	(b) Except for projects under paragraph (a), clause (3), funds distributed under this 
43.6 	section are not subject to state-aid requirements under this chapter, including but not limited 
43.7 	to engineering standards adopted by the commissioner in rules.

43.8 	Sec. 27. Minnesota Statutes 2023 Supplement, section 162.146, is amended by adding a 
43.9 	subdivision to read:
43.10 		Subd. 3.Use of funds. (a) Funds distributed under this section are available only for 
43.11 	construction and maintenance of roads located within the city, including:
43.12 	(1) land acquisition, environmental analysis, design, engineering, construction, 
43.13 	reconstruction, and maintenance;
43.14 	(2) road projects partially located within the city;
43.15 	(3) projects on municipal state-aid streets located within the city;
43.16 	(4) projects on county state-aid highways located within the city;
43.17 	(5) cost participation on road projects under the jurisdiction of another unit of government; 
43.18 	and
43.19 	(6) debt service for obligations issued by the city in accordance with chapter 475, provided 
43.20 	that the obligations are issued for a use allowable under this section.
43.21 	(b) Except for projects under paragraph (a), clauses (3) and (4), funds distributed under 
43.22 	this section are not subject to state-aid requirements under this chapter, including but not 
43.23 	limited to engineering standards adopted by the commissioner in rules.

43.24 	Sec. 28. Minnesota Statutes 2022, section 168.09, subdivision 7, is amended to read:
43.25 		Subd. 7.Display of temporary permit. (a) A vehicle that displays a Minnesota plate 
43.26 	issued under this chapter may display a temporary permit The commissioner may issue a 
43.27 	temporary permit under this subdivision in conjunction with the conclusion of a registration 
43.28 	period or a recently expired registration if:
43.29 	(1) the current registration tax and all other fees and taxes have been paid in full; and
43.30 	(2) the plate has special plates have been applied for.
44.1 	(b) A vehicle may display a temporary permit in conjunction with expired registration, 
44.2 	with or without a registration plate, if:
44.3 	(1) the plates have been applied for;
44.4 	(2) the registration tax and other fees and taxes have been paid in full; and
44.5 	(3) either the vehicle is used solely as a collector vehicle while displaying the temporary 
44.6 	permit and not used for general transportation purposes or the vehicle was issued a 21-day 
44.7 	permit under section 168.092, subdivision 1.
44.8 	(c) (b) The permit is valid for a period of 60 days. The permit must be in a format 
44.9 	prescribed by the commissioner, affixed to the rear of the vehicle where a license plate 
44.10 	would normally be affixed, and plainly visible. The permit is valid only for the vehicle for 
44.11 	which it was issued to allow a reasonable time for the new plates to be manufactured and 
44.12 	delivered to the applicant. The permit may be issued only by the commissioner or by a 
44.13 	deputy registrar under section 168.33.

44.14 	EFFECTIVE DATE. This section is effective October 1, 2024.

44.15 	Sec. 29. Minnesota Statutes 2022, section 168.092, is amended to read:
44.16 	168.092 21-DAY 60-DAY TEMPORARY VEHICLE PERMIT.
44.17 		Subdivision 1.Resident buyer. The motor vehicle registrar commissioner may issue a 
44.18 	permit to a person purchasing a new or used motor vehicle in this state for the purpose of 
44.19 	allowing the purchaser a reasonable time to register the vehicle and pay fees and taxes due 
44.20 	on the transfer. The permit is valid for a period of 21 60 days. The permit must be in a form 
44.21 	as the registrar may determine format prescribed by the commissioner, affixed to the rear 
44.22 	of the vehicle where a license plate would normally be affixed, and plainly visible. Each 
44.23 	permit is valid only for the vehicle for which issued.
44.24 		Subd. 2.Dealer. The registrar commissioner may issue permits to licensed dealers. 
44.25 	When issuing a permit, the dealer shall must complete the permit in the manner prescribed 
44.26 	by the department.

44.27 	EFFECTIVE DATE. This section is effective October 1, 2024.

45.1 	Sec. 30. Minnesota Statutes 2023 Supplement, section 168.1259, is amended to read:
45.2 	168.1259 MINNESOTA PROFESSIONAL SPORTS TEAM FOUNDATION
45.3 	PHILANTHROPY PLATES.
45.4 		Subdivision 1.Definition. For purposes of this section, "Minnesota professional sports 
45.5 	team" means one of the following teams while its home stadium is located in Minnesota: 
45.6 	Minnesota Vikings, Minnesota Timberwolves, Minnesota Lynx, Minnesota Wild, Minnesota 
45.7 	Twins, or Minnesota United.
45.8 		Subd. 2.General requirements and procedures. (a) The commissioner must issue 
45.9 	Minnesota professional sports team foundation philanthropy plates to an applicant who:
45.10 	(1) is a registered owner of a passenger automobile, noncommercial one-ton pickup 
45.11 	truck, motorcycle, or recreational vehicle;
45.12 	(2) pays an additional fee in the amount specified for special plates under section 168.12, 
45.13 	subdivision 5;
45.14 	(3) pays the registration tax required under section 168.013;
45.15 	(4) pays the fees required under this chapter;
45.16 	(5) contributes a minimum of $30 annually to the professional sports team foundations
45.17 	philanthropy account; and
45.18 	(6) complies with this chapter and rules governing registration of motor vehicles and 
45.19 	licensing of drivers.
45.20 	(b) Minnesota professional sports team foundation philanthropy plates may be 
45.21 	personalized according to section 168.12, subdivision 2a.
45.22 		Subd. 3.Design. At the request of a Minnesota professional sports team or the team's 
45.23 	foundation, the commissioner must, in consultation with the team or foundation, adopt a 
45.24 	suitable plate design incorporating. Each design must incorporate the requesting foundation's 
45.25 	marks and colors or directly relate to a charitable purpose as provided in subdivision 5. The 
45.26 	commissioner may design a single plate that incorporates the marks and colors of all 
45.27 	foundations organizations that have requested a plate.
45.28 		Subd. 4.Plate transfers. On application to the commissioner and payment of a transfer 
45.29 	fee of $5, special plates issued under this section may be transferred to another motor vehicle 
45.30 	if the subsequent vehicle is:
45.31 	(1) qualified under subdivision 2, paragraph (a), clause (1), to bear the special plates; 
45.32 	and
46.1 	(2) registered to the same individual to whom the special plates were originally issued.
46.2 		Subd. 5.Contributions; account; appropriation. (a) Contributions collected under 
46.3 	subdivision 2, paragraph (a), clause (5), must be deposited in the Minnesota professional 
46.4 	sports team foundations philanthropy account, which is established in the special revenue 
46.5 	fund. Money in the account is appropriated to the commissioner of public safety. This 
46.6 	appropriation is first for the annual cost of administering the account funds, and the remaining 
46.7 	funds are for distribution to the foundations, or as provided in this subdivision, in the
46.8 	proportion that each plate design bears to the total number of Minnesota professional sports 
46.9 	team foundation philanthropy plates issued for that year. Proceeds from a plate that includes 
46.10 	the marks and colors of all foundations participating organizations must be divided evenly 
46.11 	between all foundations and charitable purposes.
46.12 	(b) The foundations must only use the proceeds must only be used by:
46.13 	(1) a Minnesota professional sports team foundation for philanthropic or charitable 
46.14 	purposes; or
46.15 	(2) the Minnesota United professional sports team through a designation that the funds 
46.16 	are for the Minnesota Loon Restoration Project.
46.17 	(c) The commissioner must annually transfer funds designated under paragraph (b), 
46.18 	clause (2), from the Minnesota professional sports team philanthropy account to the 
46.19 	Minnesota critical habitat private sector matching account under section 84.943 for purposes 
46.20 	of the Minnesota Loon Restoration Project.

46.21 	EFFECTIVE DATE. This section is effective October 1, 2024, for Minnesota 
46.22 	professional sports team philanthropy plates issued on or after that date.

46.23 	Sec. 31. Minnesota Statutes 2022, section 168.127, is amended to read:
46.24 	168.127 FLEET VEHICLES; REGISTRATION, FEE.
46.25 		Subdivision 1.Unique registration category. (a) A unique registration category is 
46.26 	established for vehicles and trailers of a fleet. Vehicles registered in the fleet must be issued 
46.27 	a distinctive license plate. The design and size of the fleet license plate must be determined 
46.28 	by the commissioner.
46.29 	(b) A deputy registrar may issue replacement license plates for qualified vehicles in a 
46.30 	registered fleet pursuant to section 168.29.
46.31 		Subd. 2.Annual registration period. The annual registration period for vehicles in the 
46.32 	fleet will be is determined by the commissioner. The applicant must provide all information 
47.1 	necessary to qualify as a fleet registrant, including a list of all vehicles in the fleet. On initial 
47.2 	registration, all taxes and fees for vehicles in the fleet must be reassessed based on the 
47.3 	expiration date.
47.4 		Subd. 3.Registration cards issued. (a) On approval of the application for fleet 
47.5 	registration, the commissioner must issue a registration card for each qualified vehicle in 
47.6 	the fleet. The registration card must be carried in the vehicle at all times and be made 
47.7 	available to a peace officer on demand. The registered gross weight must be indicated on 
47.8 	the license plate.
47.9 	(b) A new vehicle may be registered to an existing fleet upon application to a deputy 
47.10 	registrar and payment of the fee under section 168.33, subdivision 7.
47.11 	(c) A deputy registrar must issue a replacement registration card for any registered fleet 
47.12 	or any qualified vehicle in a registered fleet upon application.
47.13 		Subd. 4.Filing registration applications. Initial fleet applications for registration and 
47.14 	renewals must be filed with the registrar commissioner or authorized deputy registrar.
47.15 		Subd. 5.Renewal of fleet registration. On the renewal of a fleet registration, the 
47.16 	registrant shall must pay full licensing fees for every vehicle registered in the preceding 
47.17 	year unless the vehicle has been properly deleted from the fleet. In order to delete a vehicle 
47.18 	from a fleet, the fleet registrant must surrender to the commissioner the registration card 
47.19 	and license plates. The registrar commissioner may authorize alternative methods of deleting 
47.20 	vehicles from a fleet, including destruction of the license plates and registration cards. If 
47.21 	the card or license plates are lost or stolen, the fleet registrant shall must submit a sworn 
47.22 	statement stating the circumstances for the inability to surrender the card, stickers, and 
47.23 	license plates. The commissioner shall assess A fleet registrant who fails to renew the 
47.24 	licenses issued under this section or fails to report the removal of vehicles from the fleet 
47.25 	within 30 days of the vehicles' removal must pay a penalty of 20 percent of the total tax due 
47.26 	on the fleet against the fleet registrant who fails to renew the licenses issued under this 
47.27 	section or fails to report the removal of vehicles from the fleet within 30 days. The penalty 
47.28 	must be paid within 30 days after it is assessed.
47.29 		Subd. 6.Fee. Instead of The applicant for fleet registration must pay the filing fee 
47.30 	described in section 168.33, subdivision 7, the applicant for fleet registration shall pay an 
47.31 	equivalent administrative fee to the commissioner for each vehicle in the fleet.

47.32 	EFFECTIVE DATE. This section is effective October 1, 2024, for fleet vehicle 
47.33 	transactions on or after that date.

48.1 	Sec. 32. [168.1283] ROTARY INTERNATIONAL PLATES.
48.2 		Subdivision 1.Issuance of plates. The commissioner must issue Rotary International 
48.3 	special license plates or a single motorcycle plate to an applicant who:
48.4 	(1) is a registered owner of a passenger automobile, noncommercial one-ton pickup 
48.5 	truck, motorcycle, or self-propelled recreational motor vehicle;
48.6 	(2) pays the registration tax as required under section 168.013;
48.7 	(3) pays a fee in the amount specified under section 168.12, subdivision 5, for each set 
48.8 	of plates, along with any other fees required by this chapter;
48.9 	(4) contributes $25 upon initial application and a minimum of $5 annually to the Rotary 
48.10 	District 5950 Foundation account; and
48.11 	(5) complies with this chapter and rules governing registration of motor vehicles and 
48.12 	licensing of drivers.
48.13 		Subd. 2.Design. The commissioner must adopt a suitable design for the plate that must 
48.14 	include the Rotary International symbol and the phrase "Service Above Self."
48.15 		Subd. 3.Plates transfer. On application to the commissioner and payment of a transfer 
48.16 	fee of $5, special plates may be transferred to another qualified motor vehicle that is 
48.17 	registered to the same individual to whom the special plates were originally issued.
48.18 		Subd. 4.Exemption. Special plates issued under this section are not subject to section 
48.19 	168.1293, subdivision 2.
48.20 		Subd. 5.Contributions; account; appropriation. Contributions collected under 
48.21 	subdivision 1, clause (4), must be deposited in the Rotary District 5950 Foundation account, 
48.22 	which is established in the special revenue fund. Money in the account is appropriated to 
48.23 	the commissioner of public safety. This appropriation is first for the annual cost of 
48.24 	administering the account funds, and the remaining funds must be distributed to the Rotary 
48.25 	District 5950 Foundation to further the rotary's mission of service, fellowship, diversity, 
48.26 	integrity, and leadership. Funds distributed under this subdivision must be used on projects 
48.27 	within this state.

48.28 	EFFECTIVE DATE. This section is effective January 1, 2025, for Rotary International 
48.29 	special plates issued on or after that date.

49.1 	Sec. 33. Minnesota Statutes 2023 Supplement, section 168.29, is amended to read:
49.2 	168.29 REPLACEMENT PLATES.
49.3 	(a) In the event of the defacement, loss, or destruction of any number plates or validation 
49.4 	stickers, the registrar commissioner, upon receiving and filing a sworn statement of the 
49.5 	vehicle owner, setting forth the circumstances of the defacement, loss, destruction, or theft 
49.6 	of the number plates or validation stickers, together with any defaced plates or stickers and 
49.7 	the payment of a fee calculated to cover the cost of replacement, shall must issue a new set 
49.8 	of plates or stickers.
49.9 	(b) A licensed motor vehicle dealer may only apply for replacement plates upon 
49.10 	application for a certificate of title in the name of a new owner or the dealer. The 
49.11 	commissioner must issue a new set of plates or validation stickers upon application for title 
49.12 	and registration after removal of plates pursuant to section 168A.11, subdivision 2.
49.13 	(c) Plates issued under this section are subject to section 168.12
49.14 	(d) The registrar shall then commissioner must note on the registrar's commissioner's
49.15 	records the issue of new number plates and shall proceed in such manner as the registrar 
49.16 	may deem advisable to must attempt to cancel and call in the original plates so as to insure 
49.17 	against their use on another motor vehicle.
49.18 	(c) (e) Duplicate registration certificates plainly marked as duplicates may be issued in 
49.19 	like cases upon the payment of a $1 fee. Fees collected under this section must be paid into 
49.20 	the state treasury and credited to deposited in the driver and vehicle services operating 
49.21 	account under section 299A.705, subdivision 1.

49.22 	EFFECTIVE DATE. This section is effective October 1, 2024.

49.23 	Sec. 34. Minnesota Statutes 2022, section 168.301, subdivision 3, is amended to read:
49.24 		Subd. 3.Late fee. In addition to any fee or tax otherwise authorized or imposed upon 
49.25 	the transfer of title for a motor vehicle, the commissioner of public safety shall must impose 
49.26 	a $2 additional fee for failure to deliver a title transfer within ten business days the period 
49.27 	specified under section 168A.10, subdivision 2.

49.28 	EFFECTIVE DATE. This section is effective October 1, 2024.

50.1 	Sec. 35. Minnesota Statutes 2022, section 168.33, is amended by adding a subdivision to 
50.2 	read:
50.3 		Subd. 8b.Competitive bidding. (a) Notwithstanding any statute or rule to the contrary, 
50.4 	if a deputy registrar appointed under this section permanently stops offering services at the 
50.5 	approved office location and permanently closes the approved office location, the 
50.6 	commissioner must use a competitive bidding process for the appointment of a replacement 
50.7 	deputy registrar. If available, the replacement deputy registrar appointed by the commissioner 
50.8 	under this section must continue to offer services at the approved office location. If the 
50.9 	existing office location is not available to the replacement deputy registrar, the replacement 
50.10 	office location must be at a location that must be approved by the commissioner and must 
50.11 	serve a similar service area as the existing office location.
50.12 	(b) The commissioner must not give a preference to a partner, owner, manager, or 
50.13 	employee of the deputy registrar that has permanently stopped offering services at the closed 
50.14 	office location in a competitive bidding process.
50.15 	(c) The commissioner must adopt rules to administer and enforce a competitive bidding 
50.16 	process to select a replacement deputy registrar. If the replacement deputy registrar elects 
50.17 	to not offer services at the office location of the prior registrar, Minnesota Rules, chapter 
50.18 	7406, governing the selection of a proposed office location of a driver's license agent, 
50.19 	applies.

50.20 	EFFECTIVE DATE. This section is effective October 1, 2025.

50.21 	Sec. 36. Minnesota Statutes 2022, section 168A.10, subdivision 2, is amended to read:
50.22 		Subd. 2.Application for new certificate. Except as provided in section 168A.11, the 
50.23 	transferee shall must, within ten 20 calendar days after assignment to the transferee of the 
50.24 	vehicle title certificate, execute the application for a new certificate of title in the space 
50.25 	provided on the certificate, and cause the certificate of title to be mailed or delivered to the 
50.26 	department. Failure of the transferee to comply with this subdivision shall result results in 
50.27 	the suspension of the vehicle's registration under section 168.17.

50.28 	EFFECTIVE DATE. This section is effective October 1, 2024, and applies to title 
50.29 	transfers on or after that date.

50.30 	Sec. 37. Minnesota Statutes 2022, section 168A.11, subdivision 1, is amended to read:
50.31 		Subdivision 1.Requirements upon subsequent transfer; service fee. (a) A dealer who 
50.32 	buys a vehicle and holds it for resale need not apply for a certificate of title. Upon transferring 
51.1 	the vehicle to another person, other than by the creation of a security interest, the dealer 
51.2 	shall must promptly execute the assignment and warranty of title by a dealer, showing the 
51.3 	names and addresses of the transferee and of any secured party holding a security interest 
51.4 	created or reserved at the time of the resale, and the date of the security agreement in the 
51.5 	spaces provided therefor on the certificate of title or secure reassignment.
51.6 	(b) If a dealer elects to apply for a certificate of title on a vehicle held for resale, the 
51.7 	dealer need not register the vehicle but shall must pay one month's registration tax. If a 
51.8 	dealer elects to apply for a certificate of title on a vehicle held for resale, the department 
51.9 	shall commissioner must not place any legend on the title that no motor vehicle sales tax 
51.10 	was paid by the dealer, but may indicate on the title whether the vehicle is a new or used 
51.11 	vehicle.
51.12 	(c) With respect to motor vehicles subject to the provisions of section 325E.15, the dealer 
51.13 	shall must also, in the space provided therefor on the certificate of title or secure 
51.14 	reassignment, state the true cumulative mileage registered on the odometer or that the exact 
51.15 	mileage is unknown if the odometer reading is known by the transferor to be different from 
51.16 	the true mileage.
51.17 	(d) The transferee shall must complete the application for title section on the certificate 
51.18 	of title or separate title application form prescribed by the department commissioner. The 
51.19 	dealer shall must mail or deliver the certificate to the registrar commissioner or deputy 
51.20 	registrar with the transferee's application for a new certificate and appropriate taxes and 
51.21 	fees, within ten business days the period specified under section 168A.10, subdivision 2.
51.22 	(e) With respect to vehicles sold to buyers who will remove the vehicle from this state, 
51.23 	the dealer shall must remove any license plates from the vehicle, issue a 31-day temporary 
51.24 	permit pursuant to section 168.091, and notify the registrar commissioner within 48 hours 
51.25 	of the sale that the vehicle has been removed from this state. The notification must be made 
51.26 	in an electronic format prescribed by the registrar commissioner. The dealer may contract 
51.27 	with a deputy registrar for the notification of sale to an out-of-state buyer. The deputy 
51.28 	registrar may charge a fee of $7 per transaction to provide this service.

51.29 	EFFECTIVE DATE. This section is effective October 1, 2024, and applies to title 
51.30 	transfers on or after that date.

51.31 	Sec. 38. Minnesota Statutes 2022, section 168A.11, subdivision 2, is amended to read:
51.32 		Subd. 2.Notification on vehicle held for resale; service fee. Within 48 hours of 
51.33 	acquiring a vehicle titled and registered in Minnesota, a dealer shall must:
52.1 	(1) notify the registrar commissioner that the dealership is holding the vehicle for resale. 
52.2 	The notification must be made electronically as prescribed by the registrar commissioner. 
52.3 	The dealer may contract this service to a deputy registrar and the registrar may charge a fee 
52.4 	of $7 per transaction to provide this service; and
52.5 	(2) remove any plates from the vehicle and dispose of them as prescribed by the 
52.6 	commissioner.

52.7 	EFFECTIVE DATE. This section is effective October 1, 2024, for vehicles on or after 
52.8 	that date.

52.9 	Sec. 39. Minnesota Statutes 2022, section 168B.035, subdivision 3, is amended to read:
52.10 		Subd. 3.Towing prohibited. (a) A towing authority may not tow a motor vehicle 
52.11 	because:
52.12 	(1) the vehicle has expired registration tabs that have been expired for less than 90 days; 
52.13 	or
52.14 	(2) the vehicle is at a parking meter on which the time has expired and the vehicle has 
52.15 	fewer than five unpaid parking tickets; or
52.16 	(3) the vehicle is identified in conjunction with a citation to the vehicle owner or lessee 
52.17 	for (i) a violation under section 169.06, subdivision 10, or (ii) a violation under section 
52.18 	169.14, subdivision 13.
52.19 	(b) A towing authority may tow a motor vehicle, notwithstanding paragraph (a), if:
52.20 	(1) the vehicle is parked in violation of snow emergency regulations;
52.21 	(2) the vehicle is parked in a rush-hour restricted parking area;
52.22 	(3) the vehicle is blocking a driveway, alley, or fire hydrant;
52.23 	(4) the vehicle is parked in a bus lane, or at a bus stop, during hours when parking is 
52.24 	prohibited;
52.25 	(5) the vehicle is parked within 30 feet of a stop sign and visually blocking the stop sign;
52.26 	(6) the vehicle is parked in a disability transfer zone or disability parking space without 
52.27 	a disability parking certificate or disability license plates;
52.28 	(7) the vehicle is parked in an area that has been posted for temporary restricted parking 
52.29 	(i) at least 12 hours in advance in a home rule charter or statutory city having a population 
52.30 	under 50,000, or (ii) at least 24 hours in advance in another political subdivision;
53.1 	(8) the vehicle is parked within the right-of-way of a controlled-access highway or within 
53.2 	the traveled portion of a public street when travel is allowed there;
53.3 	(9) the vehicle is unlawfully parked in a zone that is restricted by posted signs to use by 
53.4 	fire, police, public safety, or emergency vehicles;
53.5 	(10) the vehicle is unlawfully parked on property at the Minneapolis-St. Paul International 
53.6 	Airport owned by the Metropolitan Airports Commission;
53.7 	(11) a law enforcement official has probable cause to believe that the vehicle is stolen, 
53.8 	or that the vehicle constitutes or contains evidence of a crime and impoundment is reasonably 
53.9 	necessary to obtain or preserve the evidence;
53.10 	(12) the driver, operator, or person in physical control of the vehicle is taken into custody 
53.11 	and the vehicle is impounded for safekeeping;
53.12 	(13) a law enforcement official has probable cause to believe that the owner, operator, 
53.13 	or person in physical control of the vehicle has failed to respond to five or more citations 
53.14 	for parking or traffic offenses;
53.15 	(14) the vehicle is unlawfully parked in a zone that is restricted by posted signs to use 
53.16 	by taxicabs;
53.17 	(15) the vehicle is unlawfully parked and prevents egress by a lawfully parked vehicle;
53.18 	(16) the vehicle is parked, on a school day during prohibited hours, in a school zone on 
53.19 	a public street where official signs prohibit parking; or
53.20 	(17) the vehicle is a junk, abandoned, or unauthorized vehicle, as defined in section 
53.21 	168B.011, and subject to immediate removal under this chapter.
53.22 	(c) A violation under section 169.06, subdivision 10, or 169.14, subdivision 13, is not 
53.23 	a traffic offense under paragraph (b), clause (13).

53.24 	Sec. 40. Minnesota Statutes 2023 Supplement, section 169.011, subdivision 27, is amended 
53.25 	to read:
53.26 		Subd. 27.Electric-assisted bicycle. (a) "Electric-assisted bicycle" means a bicycle with 
53.27 	two or three wheels that:
53.28 	(1) has a saddle and fully operable pedals for human propulsion;
53.29 	(2) meets the requirements for bicycles under Code of Federal Regulations, title 16, part 
53.30 	1512, or successor requirements;
54.1 	(3) is equipped with an electric motor that has a power output of not more than 750 
54.2 	watts;
54.3 	(4) meets the requirements of a class 1, class 2, or class 3, or multiple mode
54.4 	electric-assisted bicycle; and
54.5 	(5) has a battery or electric drive system that has been tested to an applicable safety 
54.6 	standard by a third-party testing laboratory.
54.7 	(b) A vehicle is not an electric-assisted bicycle if it is designed, manufactured, or intended 
54.8 	by the manufacturer or seller to be configured or modified to not meet the requirements for 
54.9 	an electric-assisted bicycle or operate within the requirements for an electric-assisted bicycle 
54.10 	class.
54.11 	(c) For purposes of this subdivision, "configured or modified" includes any of the 
54.12 	following changes:
54.13 	(1) a mechanical switch or button;
54.14 	(2) a modification or change to the electric motor or the electric drive system;
54.15 	(3) the use of an application to increase or override the electric drive system; or
54.16 	(4) through any other means represented or intended by the manufacturer or seller to 
54.17 	modify the vehicle to no longer meet the requirements or classification of an electric-assisted 
54.18 	bicycle.

54.19 	Sec. 41. Minnesota Statutes 2022, section 169.011, is amended by adding a subdivision 
54.20 	to read:
54.21 		Subd. 45a.Multiple mode electric-assisted bicycle. "Multiple mode electric-assisted 
54.22 	bicycle" means an electric-assisted bicycle equipped with switchable or programmable 
54.23 	modes that provide for operation as two or more of a class 1, class 2, or class 3 
54.24 	electric-assisted bicycle in conformance with the definition and requirements under this 
54.25 	chapter for each respective class.

54.26 	Sec. 42. Minnesota Statutes 2022, section 169.011, is amended by adding a subdivision 
54.27 	to read:
54.28 		Subd. 62b.Red light camera system. "Red light camera system" means an electronic 
54.29 	system of one or more cameras or other motor vehicle sensors that is specifically designed 
54.30 	to automatically produce recorded images of a motor vehicle operated in violation of a 
55.1 	traffic-control signal, including related information technology for recorded image storage, 
55.2 	retrieval, and transmission.

55.3 	Sec. 43. Minnesota Statutes 2022, section 169.011, is amended by adding a subdivision 
55.4 	to read:
55.5 		Subd. 77a.Speed safety camera system. "Speed safety camera system" means an 
55.6 	electronic system of one or more cameras or other motor vehicle sensors that is specifically 
55.7 	designed to automatically produce recorded images of a motor vehicle operated in violation 
55.8 	of the speed limit, including related information technology for recorded image storage, 
55.9 	retrieval, and transmission.

55.10 	Sec. 44. Minnesota Statutes 2022, section 169.011, is amended by adding a subdivision 
55.11 	to read:
55.12 		Subd. 85a.Traffic safety camera system. "Traffic safety camera system" means a red 
55.13 	light camera system, a speed safety camera system, or both in combination.

55.14 	Sec. 45. Minnesota Statutes 2022, section 169.011, is amended by adding a subdivision 
55.15 	to read:
55.16 		Subd. 92b.Vulnerable road user. "Vulnerable road user" means a person in the 
55.17 	right-of-way of a highway, including but not limited to a bikeway and an adjacent sidewalk 
55.18 	or trail, who is:
55.19 	(1) a pedestrian;
55.20 	(2) on a bicycle, including an electric-assisted bicycle, or on another nonmotorized 
55.21 	vehicle or device;
55.22 	(3) on an electric personal assistive mobility device;
55.23 	(4) on an implement of husbandry; or
55.24 	(5) riding an animal.
55.25 	Vulnerable road user includes the operator and any passengers for a vehicle, device, or 
55.26 	personal conveyance identified in this subdivision.

56.1 	Sec. 46. Minnesota Statutes 2022, section 169.04, is amended to read:
56.2 	169.04 LOCAL AUTHORITY.
56.3 	(a) The provisions of this chapter shall not be deemed to prevent local authorities, with 
56.4 	respect to streets and highways under their jurisdiction, and with the consent of the 
56.5 	commissioner, with respect to state trunk highways, within the corporate limits of a 
56.6 	municipality, or within the limits of a town in a county in this state now having or which 
56.7 	may hereafter have, a population of 500,000 or more, and a land area of not more than 600 
56.8 	square miles, and within the reasonable exercise of the police power from:
56.9 	(1) regulating the standing or parking of vehicles;
56.10 	(2) regulating traffic by means of police officers or traffic-control signals;
56.11 	(3) regulating or prohibiting processions or assemblages on the highways;
56.12 	(4) designating particular highways as one-way roadways and requiring that all vehicles, 
56.13 	except emergency vehicles, when on an emergency run, thereon be moved in one specific 
56.14 	direction;
56.15 	(5) designating any highway as a through highway and requiring that all vehicles stop 
56.16 	before entering or crossing the same, or designating any intersection as a stop intersection, 
56.17 	and requiring all vehicles to stop at one or more entrances to such intersections;
56.18 	(6) restricting the use of highways as authorized in sections 169.80 to 169.88.;
56.19 	(7) regulating speed limits through the use of a speed safety camera system implemented 
56.20 	under section 169.147; and
56.21 	(8) regulating traffic control through the use of a red light camera system implemented 
56.22 	under section 169.147.
56.23 	(b) No ordinance or regulation enacted under paragraph (a), clause (4), (5), or (6), shall 
56.24 	be effective until signs giving notice of such local traffic regulations are posted upon and 
56.25 	kept posted upon or at the entrance to the highway or part thereof affected as may be most 
56.26 	appropriate.
56.27 	(c) No ordinance or regulation enacted under paragraph (a), clause (3), or any other 
56.28 	provision of law shall prohibit:
56.29 	(1) the use of motorcycles or vehicles utilizing flashing red lights for the purpose of 
56.30 	escorting funeral processions, oversize buildings, heavy equipment, parades or similar 
56.31 	processions or assemblages on the highways; or
57.1 	(2) the use of motorcycles or vehicles that are owned by the funeral home and that utilize 
57.2 	flashing red lights for the purpose of escorting funeral processions.
57.3 	(d) Ordinances or regulations enacted under paragraph (a), clauses (7) and (8), are 
57.4 	effective after August 1, 2025, and before August 1, 2029.

57.5 	Sec. 47. Minnesota Statutes 2022, section 169.06, is amended by adding a subdivision to 
57.6 	read:
57.7 		Subd. 10.Red light camera; penalty. (a) Subject to subdivision 11, if a motor vehicle 
57.8 	is operated in violation of a traffic-control signal and the violation is identified through the 
57.9 	use of a red light camera system implemented under section 169.147, the owner of the 
57.10 	vehicle or the lessee of the vehicle is guilty of a petty misdemeanor and must pay a fine of 
57.11 	$40.
57.12 	(b) A person who commits a first offense under paragraph (a) must be given a warning 
57.13 	and is not subject to a fine or conviction under paragraph (a). A person who commits a 
57.14 	second offense under paragraph (a) is eligible for diversion, which must include a traffic 
57.15 	safety course established under section 169.147, subdivision 11. A person who enters 
57.16 	diversion and completes the traffic safety course is not subject to a fine or conviction under 
57.17 	paragraph (a).
57.18 	(c) Paragraph (b) does not apply to:
57.19 	(1) a violation that occurs in a commercial motor vehicle; or
57.20 	(2) a violation committed by a holder of a class A, B, or C commercial driver's license 
57.21 	or commercial driver learner's permit, without regard to whether the violation was committed 
57.22 	in a commercial motor vehicle or another vehicle.
57.23 	(d) This subdivision applies to violations committed on or after August 1, 2025, and 
57.24 	before August 1, 2029.

57.25 	Sec. 48. Minnesota Statutes 2022, section 169.06, is amended by adding a subdivision to 
57.26 	read:
57.27 		Subd. 11.Red light camera; limitations. (a) An owner or lessee of a motor vehicle is 
57.28 	not subject to a fine or conviction under subdivision 10 if any of the conditions under section 
57.29 	169.14, subdivision 14, paragraph (a), clauses (1) to (7), are met.
57.30 	(b) The owner or lessee of a motor vehicle may not be issued a citation under subdivision 
57.31 	10 and under another subdivision in this section for the same conduct.
58.1 	(c) A fine or conviction under subdivision 10 does not constitute grounds for revocation 
58.2 	or suspension of a person's driver's license.
58.3 	(d) Except as provided in subdivision 10, paragraph (c), this subdivision applies to 
58.4 	violations committed on or after August 1, 2025, and before August 1, 2029.

58.5 	Sec. 49. Minnesota Statutes 2022, section 169.14, subdivision 10, is amended to read:
58.6 		Subd. 10.Radar; speed-measuring device; standards of evidence. (a) In any 
58.7 	prosecution in which the rate of speed of a motor vehicle is relevant, evidence of the speed 
58.8 	as indicated on radar or other speed-measuring device, including but not limited to a speed 
58.9 	safety camera system, is admissible in evidence, subject to the following conditions:
58.10 	(1) the officer or traffic enforcement agent under section 169.147 operating the device 
58.11 	has sufficient training to properly operate the equipment;
58.12 	(2) the officer or traffic enforcement agent testifies as to the manner in which the device 
58.13 	was set up and operated;
58.14 	(3) the device was operated with minimal distortion or interference from outside sources; 
58.15 	and
58.16 	(4) the device was tested by an accurate and reliable external mechanism, method, or 
58.17 	system at the time it was set up.
58.18 	(b) Records of tests made of such devices and kept in the regular course of operations 
58.19 	of any law enforcement agency are admissible in evidence without further foundation as to 
58.20 	the results of the tests. The records shall be available to a defendant upon demand. Nothing 
58.21 	in this subdivision shall be construed to preclude or interfere with cross examination or 
58.22 	impeachment of evidence of the rate of speed as indicated on the radar or speed-measuring 
58.23 	device.
58.24 	(c) Evidence from a speed safety camera system may be used solely for a citation or 
58.25 	prosecution for a violation under subdivision 13.

58.26 	Sec. 50. Minnesota Statutes 2022, section 169.14, is amended by adding a subdivision to 
58.27 	read:
58.28 		Subd. 13.Speed safety camera; penalty. (a) Subject to subdivision 14, if a motor 
58.29 	vehicle is operated in violation of a speed limit and the violation is identified through the 
58.30 	use of a speed safety camera system implemented under section 169.147, the owner of the 
58.31 	vehicle or the lessee of the vehicle is guilty of a petty misdemeanor and must pay a fine of:
59.1 	(1) $40; or
59.2 	(2) $80, if the violation is for a speed at least 20 miles per hour in excess of the speed 
59.3 	limit.
59.4 	(b) A person who commits a first offense under paragraph (a) must be given a warning 
59.5 	and is not subject to a fine or conviction under paragraph (a). A person who commits a 
59.6 	second offense under paragraph (a) is eligible for diversion, which must include a traffic 
59.7 	safety course established under section 169.147, subdivision 11. A person who enters 
59.8 	diversion and completes the traffic safety course is not subject to a fine or conviction under 
59.9 	paragraph (a).
59.10 	(c) Paragraph (b) does not apply to:
59.11 	(1) a violation that occurs in a commercial motor vehicle; or
59.12 	(2) a violation committed by a holder of a class A, B, or C commercial driver's license 
59.13 	or commercial driver learner's permit, without regard to whether the violation was committed 
59.14 	in a commercial motor vehicle or another vehicle.
59.15 	(d) This subdivision applies to violations committed on or after August 1, 2025, and 
59.16 	before August 1, 2029.

59.17 	Sec. 51. Minnesota Statutes 2022, section 169.14, is amended by adding a subdivision to 
59.18 	read:
59.19 		Subd. 14.Speed safety camera; limitations. (a) An owner or lessee of a motor vehicle 
59.20 	is not subject to a fine or conviction under subdivision 13 if:
59.21 	(1) the vehicle was stolen at the time of the violation;
59.22 	(2) a transfer of interest in the vehicle in compliance with section 168A.10 was made 
59.23 	before the time of the violation;
59.24 	(3) the vehicle owner is a lessor of the motor vehicle, and the lessor identifies the name 
59.25 	and address of the lessee;
59.26 	(4) the vehicle is an authorized emergency vehicle operated in the performance of official 
59.27 	duties at the time of the violation;
59.28 	(5) another person is convicted, within the meaning under section 171.01, subdivision 
59.29 	29, for the same violation;
59.30 	(6) the vehicle owner provides a sworn statement to the court or prosecuting authority 
59.31 	that the owner was not operating the vehicle at the time of the violation; or
60.1 	(7) the vehicle owner provides a sworn statement to the court or prosecuting authority 
60.2 	that the owner was operating the vehicle at the time of the violation under the circumstances 
60.3 	of a medical emergency for either the driver or a passenger in the vehicle.
60.4 	(b) The owner or lessee of a motor vehicle may not be issued a citation under subdivision 
60.5 	13 and under another subdivision in this section for the same conduct.
60.6 	(c) Except as provided in subdivision 13, paragraph (c), a fine or conviction under 
60.7 	subdivision 13 does not constitute grounds for revocation or suspension of a person's driver's 
60.8 	license.
60.9 	(d) A vehicle owner asserting a defense under paragraph (a), clause (7), must provide 
60.10 	an accompanying sworn statement from the physician responsible for treatment of the 
60.11 	underlying condition or emergency that necessitated medical attention.
60.12 	(e) This subdivision applies to violations committed on or after August 1, 2025, and 
60.13 	before August 1, 2029.

60.14 	Sec. 52. [169.147] TRAFFIC SAFETY CAMERA SYSTEM PILOT PROGRAM.
60.15 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
60.16 	the meanings given.
60.17 	(b) "Camera-based traffic enforcement" means enforcement of traffic control through 
60.18 	the use of a red light camera system, speed limits through the use of a speed safety camera 
60.19 	system, or both.
60.20 	(c) "Commissioner" means the commissioner of transportation.
60.21 	(d) "Commissioners" means the commissioner of transportation as the lead in coordination 
60.22 	with the commissioner of public safety.
60.23 	(e) "Implementing authority" means either:
60.24 	(1) the commissioners with respect to trunk highways for the work zone pilot program 
60.25 	provided under subdivision 17; or
60.26 	(2) a local authority specified in paragraph (f) that implements the traffic safety camera 
60.27 	system pilot program.
60.28 	(f) "Local authority" means either the city of Minneapolis or the city of Mendota Heights, 
60.29 	which are authorized to conduct the pilot program.
60.30 	(g) "Monitoring site" means a location at which a traffic safety camera system is placed 
60.31 	and operated under this section.
61.1 	(h) "Pilot program" means the traffic safety camera pilot program established in this 
61.2 	section.
61.3 	(i) "Traffic enforcement agent" means a licensed peace officer or an employee of a local 
61.4 	authority who is designated as provided in this section.
61.5 		Subd. 2.Pilot program establishment. (a) In conformance with this section, the 
61.6 	commissioner of transportation, in coordination with the commissioner of public safety, 
61.7 	must establish a traffic safety camera pilot program that provides for education and 
61.8 	enforcement of speeding violations, traffic-control signal violations, or both in conjunction 
61.9 	with use of traffic safety camera systems.
61.10 	(b) The authority for camera-based traffic enforcement under the pilot program is limited 
61.11 	to August 1, 2025, to July 31, 2029.
61.12 	(c) Only the following may implement camera-based traffic enforcement under the pilot 
61.13 	program:
61.14 	(1) the commissioners, as provided under paragraph (d);
61.15 	(2) the city of Minneapolis, as provided under paragraph (e); and
61.16 	(3) the city of Mendota Heights.
61.17 	(d) Under the pilot program, the commissioners must, beginning August 1, 2025, 
61.18 	commence enforcement of speeding violations in trunk highway work zones as specified 
61.19 	under subdivision 17.
61.20 	(e) The city of Minneapolis is prohibited from implementing the pilot program or 
61.21 	camera-based traffic enforcement through or in substantive coordination with the city's 
61.22 	police department.
61.23 		Subd. 3.Local authority requirements. Prior to implementation of camera-based traffic 
61.24 	enforcement, a local authority must:
61.25 	(1) incorporate both camera-based traffic enforcement and additional strategies designed 
61.26 	to improve traffic safety in a local traffic safety action plan, transportation plan, or 
61.27 	comprehensive plan; and
61.28 	(2) review and ensure compliance with the requirements under this section.
61.29 		Subd. 4.Traffic safety camera system requirements. (a) By July 1, 2025, the 
61.30 	commissioners must establish traffic safety camera system standards that include:
61.31 	(1) recording and data requirements as specified in subdivision 15;
62.1 	(2) requirements for monitoring site signage in conformance with the requirements under 
62.2 	subdivision 5, paragraph (b), clause (3);
62.3 	(3) procedures for traffic safety camera system placement in conformance with the 
62.4 	requirements under subdivision 6;
62.5 	(4) training and qualification of individuals to inspect and calibrate a traffic safety camera 
62.6 	system;
62.7 	(5) procedures for initial calibration of the traffic safety camera system prior to 
62.8 	deployment; and
62.9 	(6) requirements for regular traffic safety camera system inspection and maintenance 
62.10 	by a qualified individual.
62.11 	(b) Prior to establishing the standards under paragraph (a), the commissioners must 
62.12 	solicit review and comments and consider any comments received.
62.13 	(c) An implementing authority must follow the requirements and standards established 
62.14 	under this subdivision.
62.15 		Subd. 5.Public engagement and notice. (a) The commissioner and each implementing 
62.16 	authority must maintain information on their respective websites that, at a minimum:
62.17 	(1) summarizes implementation of traffic safety camera systems under the pilot program;
62.18 	(2) provides each camera system impact study performed by the implementing authority 
62.19 	under subdivision 6, paragraph (b);
62.20 	(3) provides information and procedures for a person to contest a citation under the pilot 
62.21 	program; and
62.22 	(4) identifies the enforcement locations under the pilot program.
62.23 	(b) An implementing authority must:
62.24 	(1) implement a general public engagement and information campaign prior to 
62.25 	commencing camera-based speed enforcement under the pilot program;
62.26 	(2) perform public engagement as part of conducting a camera system impact study 
62.27 	under subdivision 6, paragraph (b); and
62.28 	(3) place conspicuous signage prior to the motorist's arrival at each monitoring site, 
62.29 	which must:
62.30 	(i) notify motor vehicle operators of the use of a traffic safety camera system to detect 
62.31 	violations; and
63.1 	(ii) if a speed safety camera is in use, identify the speed limit.
63.2 	(c) Public engagement under paragraph (b) must include but is not limited to:
63.3 	(1) outreach to populations that are traditionally underrepresented in public policy or 
63.4 	planning processes;
63.5 	(2) consolidation and analysis of public feedback; and
63.6 	(3) creation of an engagement summary that identifies public feedback and the resulting 
63.7 	impacts on implementation of camera-based traffic enforcement.
63.8 		Subd. 6.Placement requirements. (a) A local authority with fewer than 10,000 residents 
63.9 	may place no more than one traffic safety camera system, whether the camera system is 
63.10 	activated or inactive. A local authority with at least 10,000 residents may place no more 
63.11 	than one traffic safety camera system per 10,000 residents, whether the camera system is 
63.12 	activated or inactive. An implementing authority may move the location of a traffic safety 
63.13 	camera system if the placement requirements under this subdivision are met.
63.14 	(b) An implementing authority may only place a traffic safety camera system in 
63.15 	conformance with the results of a camera system impact study. At a minimum, the study 
63.16 	must:
63.17 	(1) include evaluation of crash rates and severity, vehicle speed, equity, and traffic safety 
63.18 	treatment alternatives;
63.19 	(2) identify traffic safety camera system locations; and
63.20 	(3) explain how the locations comply with the placement requirements under paragraph 
63.21 	(d).
63.22 	(c) An implementing authority may only place a traffic safety camera system:
63.23 	(1) in a trunk highway work zone; or
63.24 	(2) at a location that:
63.25 	(i) is within 2,000 feet of (A) a public or nonpublic school, (B) a school zone established 
63.26 	under section 169.14, subdivision 5a, or (C) a public or private postsecondary institution; 
63.27 	and
63.28 	(ii) has an identified traffic safety concern, as indicated by crash or law enforcement 
63.29 	data, safety plans, or other documentation.
64.1 	(d) An implementing authority that places more than one traffic safety camera system 
64.2 	must ensure that the cameras are placed in geographically distinct areas and in multiple 
64.3 	communities with differing socioeconomic conditions.
64.4 	(e) An implementing authority may place a traffic safety camera system on a street or 
64.5 	highway that is not under its jurisdiction only upon approval by the road authority that has 
64.6 	jurisdiction.
64.7 		Subd. 7.Traffic-control devices. (a) An implementing authority must not adjust the 
64.8 	change interval for the steady yellow indication in a traffic-control signal:
64.9 	(1) for one month prior to beginning to operate a red light camera system at the associated 
64.10 	intersection; or
64.11 	(2) during the period that the red light camera system is operated at the associated 
64.12 	intersection.
64.13 	(b) The yellow change interval for a traffic-control signal that is subject to paragraph 
64.14 	(a) must meet or exceed the standards and guidance specified in the Manual on Uniform 
64.15 	Traffic Control Devices adopted under section 169.06, subdivision 1.
64.16 	(c) An implementing authority that adjusts the yellow change interval for a traffic-control 
64.17 	signal at an intersection where a red light camera system is being operated must deactivate 
64.18 	the red light camera system and subsequently meet the requirements under paragraph (a).
64.19 		Subd. 8.Traffic enforcement agents. (a) To meet the requirement established in 
64.20 	subdivision 2, paragraph (e), the city of Minneapolis must designate one or more permanent 
64.21 	employees of the authority, who is not a licensed peace officer, as a traffic enforcement 
64.22 	agent. An employee of a private entity may not be designated as a traffic enforcement agent. 
64.23 	A traffic enforcement agent who is not a licensed peace officer has the authority to issue 
64.24 	citations under this section only while engaged in job duties and otherwise has none of the 
64.25 	other powers and privileges reserved to peace officers.
64.26 	(b) The city of Mendota Heights must designate a sworn peace officer as a traffic 
64.27 	enforcement agent.
64.28 	(c) An implementing authority must ensure that a traffic enforcement agent is properly 
64.29 	trained in the use of equipment and the requirements governing traffic safety camera 
64.30 	implementation.
64.31 		Subd. 9.Citations; warnings. (a) A traffic enforcement agent under the pilot program 
64.32 	has the exclusive authority to issue a citation to the owner or lessee of a motor vehicle for 
65.1 	(1) a violation under section 169.06, subdivision 10, and (2) a violation under section 169.14, 
65.2 	subdivision 13.
65.3 	(b) A traffic enforcement agent may only issue a citation if:
65.4 	(1) the violation is committed at least 30 days after the relevant implementing authority 
65.5 	has commenced camera-based traffic enforcement;
65.6 	(2) with respect to speed limits, the speeding violation is at least ten miles per hour in 
65.7 	excess of the speed limit; and
65.8 	(3) a traffic enforcement agent has inspected and verified recorded images provided by 
65.9 	the traffic safety camera system.
65.10 	(c) An implementing authority must provide a warning for a traffic-control signal 
65.11 	violation under section 169.06, subdivision 10, or a speeding violation under section 169.14, 
65.12 	subdivision 13, for the period from (1) the date when camera-based traffic enforcement is 
65.13 	first commenced, to (2) the date when citations are authorized under paragraph (b), clause 
65.14 	(1).
65.15 	(d) Notwithstanding section 169.022, an implementing authority may specify a speed 
65.16 	in excess of the speed limit that is higher than the amount specified in paragraph (b), clause 
65.17 	(2), at which to proceed with issuance of a citation.
65.18 	(e) A citation may be issued through the United States mail if postmarked within: (1) 
65.19 	14 days of the violation for a vehicle registered in Minnesota; or (2) 30 days of the violation 
65.20 	for a vehicle registered outside of Minnesota. Section 168.346, subdivision 2, applies to a 
65.21 	private entity that provides citation mailing services under this section.
65.22 		Subd. 10.Uniform citation. (a) There must be a uniform traffic safety camera citation 
65.23 	issued throughout the state by a traffic enforcement agent for a violation as provided under 
65.24 	this section. The uniform traffic safety camera citation is in the form and has the effect of 
65.25 	a summons and complaint.
65.26 	(b) The commissioner of public safety must prescribe the detailed form of the uniform 
65.27 	traffic safety camera citation. As appropriate, the citation design must conform with the 
65.28 	requirements for a uniform traffic ticket under section 169.99, subdivisions 1 and 1d. The 
65.29 	citation design must include:
65.30 	(1) a brief overview of the pilot program and implementation of traffic safety camera 
65.31 	systems;
66.1 	(2) a summary of the circumstances of the citation that includes identification of the 
66.2 	motor vehicle involved, the date and time of the violation, and the location where the 
66.3 	violation occurred;
66.4 	(3) copy of the recorded image or primary images used to identify a violation;
66.5 	(4) a notification that the recorded images under clause (3) are evidence of a violation 
66.6 	under section 169.06, subdivision 10, or 169.14, subdivision 13;
66.7 	(5) a statement signed by the traffic enforcement agent who issued the citation stating 
66.8 	that the agent has inspected the recorded images and determined that the violation occurred 
66.9 	in the specified motor vehicle;
66.10 	(6) a summary of the limitations under sections 169.06, subdivision 11, and 169.14, 
66.11 	subdivision 14;
66.12 	(7) notification that an owner is ineligible for diversion if the violation was committed 
66.13 	by a holder of a class A, B, or C commercial driver's license or commercial driver learner's 
66.14 	permit, without regard to whether the violation was committed in a commercial motor 
66.15 	vehicle or another vehicle;
66.16 	(8) information on the diversion and traffic safety course eligibility and requirements 
66.17 	under sections 169.06, subdivision 10, paragraph (b), and 169.14, subdivision 13, paragraph 
66.18 	(b);
66.19 	(9) the total amount of the fine imposed;
66.20 	(10) a notification that the person has the right to contest the citation;
66.21 	(11) information on the process and procedures for a person to contest the citation; and
66.22 	(12) a statement that payment of the fine constitutes a plea of guilty and failure to appear 
66.23 	in court is considered a plea of guilty, as provided under section 169.91.
66.24 	(c) The commissioner of public safety must make the information required under 
66.25 	paragraph (b) available in languages that are commonly spoken in the state and in each area 
66.26 	in which a local authority has implemented camera-based traffic enforcement.
66.27 		Subd. 11.Traffic safety course. (a) The commissioners must establish a traffic safety 
66.28 	course that provides at least 30 minutes of instruction on speeding, traffic-control signals, 
66.29 	and other traffic safety topics. The curriculum must include safety risks associated with 
66.30 	speed and speeding in school zones and work zones.
66.31 	(b) The commissioners must not impose a fee for an individual who is authorized to 
66.32 	attend the course under sections 169.06, subdivision 10, and 169.14, subdivision 13.
67.1 		Subd. 12.Third-party agreements. (a) An implementing authority may enter into 
67.2 	agreements with a private entity for operations, services, or equipment under this section. 
67.3 	Payment under a contract with a private entity must not be based on the number of violations, 
67.4 	citations issued, or other similar means.
67.5 	(b) An implementing authority that enters into a third-party agreement under this 
67.6 	subdivision must perform a data practices audit of the private entity to confirm compliance 
67.7 	with the requirements under subdivisions 14 to 16 and chapter 13. An audit must be 
67.8 	undertaken at least every other year.
67.9 		Subd. 13.Use of revenue. (a) Revenue from citations received by an implementing 
67.10 	authority that is attributable to camera-based traffic enforcement must be allocated as follows:
67.11 	(1) first as necessary to provide for implementation costs, which may include but are 
67.12 	not limited to procurement and installation of traffic safety camera systems, traffic safety 
67.13 	planning, and public engagement; and
67.14 	(2) the remainder for traffic safety measures that perform traffic calming.
67.15 	(b) The amount expended under paragraph (a), clause (2), must supplement and not 
67.16 	supplant existing expenditures for traffic safety.
67.17 		Subd. 14.Data practices; general requirements. (a) All data collected by a traffic 
67.18 	safety camera system are private data on individuals as defined in section 13.02, subdivision 
67.19 	12, or nonpublic data as defined in section 13.02, subdivision 9, unless the data are public 
67.20 	under section 13.82, subdivision 2, 3, or 6, or are criminal investigative data under section 
67.21 	13.82, subdivision 7.
67.22 	(b) An agreement with a private entity and an implementing authority pursuant to 
67.23 	subdivision 12 is subject to section 13.05, subdivisions 6 and 11.
67.24 	(c) A private entity must use the data gathered under this section only for purposes of 
67.25 	camera-based traffic enforcement under the pilot program and must not share or disseminate 
67.26 	the data with an entity other than the appropriate implementing authority, except pursuant 
67.27 	to a court order. Nothing in this subdivision prevents a private entity from sharing or 
67.28 	disseminating summary data, as defined in section 13.02, subdivision 19.
67.29 	(d) Traffic safety camera system data are not subject to subpoena, discovery, or admission 
67.30 	into evidence in any prosecution, civil action, or administrative process that is not taken 
67.31 	pursuant to section 169.06, subdivision 10, or 169.14, subdivision 13.
67.32 		Subd. 15.Data practices; traffic safety camera system. A traffic safety camera system:
68.1 	(1) is limited to collection of the following data:
68.2 	(i) recorded video or images of the rear license plate of a motor vehicle;
68.3 	(ii) recorded video or images of motor vehicles and areas surrounding the vehicles to 
68.4 	the extent necessary to (A) identify a violation of a traffic-control device, or (B) calculate 
68.5 	vehicle speeds;
68.6 	(iii) date, time, and vehicle location that correlates to the data collected under item (i) 
68.7 	or (ii); and
68.8 	(iv) general traffic data:
68.9 	(A) collected specifically for purposes of pilot program analysis and evaluation;
68.10 	(B) that does not include recorded video or images;
68.11 	(C) in which individuals or unique vehicles are not identified; and
68.12 	(D) from which an individual or unique vehicle is not ascertainable;
68.13 	(2) must not record in a manner that makes any individual personally identifiable, 
68.14 	including but not limited to the motor vehicle operator or occupants; and
68.15 	(3) may only record or retain the data specified in clause (1), items (i) to (iii), if the 
68.16 	traffic safety camera system identifies an appropriate potential violation for review by a 
68.17 	traffic enforcement agent.
68.18 		Subd. 16.Data practices; destruction of data. (a) Notwithstanding section 138.17, 
68.19 	and except as otherwise provided in this subdivision, data collected by a traffic safety camera 
68.20 	system must be destroyed within 30 days of the date of collection unless the data are criminal 
68.21 	investigative data under section 13.82, subdivision 7, related to a violation of a traffic-control 
68.22 	signal or a speed limit.
68.23 	(b) Upon written request to a law enforcement agency from an individual who is the 
68.24 	subject of a pending criminal charge or complaint, along with the case or complaint number 
68.25 	and a statement that the data may be used as exculpatory evidence, data otherwise subject 
68.26 	to destruction under paragraph (a) must be preserved by the law enforcement agency until 
68.27 	the charge or complaint is resolved or dismissed.
68.28 	(c) Upon written request from a program participant under chapter 5B, data collected 
68.29 	by a traffic safety camera system related to the program participant must be destroyed at 
68.30 	the time of collection or upon receipt of the request, whichever occurs later, unless the data 
68.31 	are active criminal investigative data. The existence of a request submitted under this 
68.32 	paragraph is private data on individuals as defined in section 13.02, subdivision 12.
69.1 	(d) Notwithstanding section 138.17, data collected by a traffic safety camera system 
69.2 	must be destroyed within three years of the resolution of a citation issued pursuant to this 
69.3 	section.
69.4 	(e) The destruction requirements under this subdivision do not apply to: (1) general 
69.5 	traffic data as provided under subdivision 15, clause (1), item (iv); and (2) data that identifies 
69.6 	the number of warnings or citations issued to an individual under this section.
69.7 		Subd. 17.Work zone pilot project. (a) By August 1, 2025, the commissioners must 
69.8 	implement a speed safety camera pilot project that provides for education of speeding 
69.9 	violations in conjunction with the development and study of the use of speed safety camera 
69.10 	systems.
69.11 	(b) The commissioners must issue a warning for a violation of section 169.14, subdivision 
69.12 	13, captured by a speed safety camera system and must not impose any fine for a second 
69.13 	or subsequent violation.
69.14 	(c) The warning issued by the commissioners must include easily understandable 
69.15 	information on speeding, traffic-control signals, and other safety risks associated with speed 
69.16 	and speeding in work zones.
69.17 	(d) The commissioner must establish an implementation schedule that begins 
69.18 	commencement of camera-based traffic enforcement on at least two, but no more than four, 
69.19 	trunk highway work zone segments by August 1, 2025. The commissioners may select 
69.20 	different trunk highway work zones. The commissioners must conduct the work zone pilot 
69.21 	project in geographically diverse areas and must consider traffic patterns, work zone accident 
69.22 	rates, historic speed enforcement and citation rates, and other factors to study further 
69.23 	deployment of speed camera systems in additional work zones.
69.24 	(e) By July 1, 2025, the commissioners of transportation and public safety must establish 
69.25 	standards, schedules, curricula, and requirements for camera-based traffic enforcement in 
69.26 	a trunk highway work zone.
69.27 	(f) The authority for the work zone pilot project is limited to August 1, 2025, to July 31, 
69.28 	2029.
69.29 		Subd. 18.Exempt from rulemaking. Rules adopted to implement this section are 
69.30 	exempt from rulemaking under chapter 14 and are not subject to exempt rulemaking 
69.31 	procedures under section 14.386.
69.32 		Subd. 19.Expiration. This section expires July 31, 2029.

70.1 	Sec. 53. Minnesota Statutes 2022, section 169.18, is amended by adding a subdivision to 
70.2 	read:
70.3 		Subd. 13.Impeding motorcycle. An operator of a motor vehicle must not intentionally 
70.4 	impede or attempt to prevent the operation of a motorcycle when the motorcycle is operated 
70.5 	under the conditions specified in section 169.974, subdivision 5, paragraph (g).

70.6 	EFFECTIVE DATE. This section is effective July 1, 2025, for violations committed 
70.7 	on or after that date.

70.8 	Sec. 54. Minnesota Statutes 2022, section 169.21, subdivision 6, is amended to read:
70.9 		Subd. 6.Driver education curriculum; vulnerable road users. The class D curriculum, 
70.10 	in addition to driver education classroom curriculum prescribed in rules of statutes for class 
70.11 	D motor vehicles, must include instruction on commissioner must adopt rules for persons 
70.12 	enrolled in driver education programs offered at public schools, private schools, and 
70.13 	commercial driver training schools to require inclusion of a section on vulnerable road users 
70.14 	in the course of instruction. The instruction must include information on:
70.15 	(1) the rights and responsibilities of vulnerable road users, as defined in section 169.011, 
70.16 	subdivision 92b;
70.17 	(2) the specific duties of a driver when encountering a bicycle, other nonmotorized 
70.18 	vehicles, or a pedestrian.;
70.19 	(3) safety risks for vulnerable road users and motorcyclists or other operators of two- 
70.20 	or three-wheeled vehicles; and
70.21 	(4) best practices to minimize dangers and avoid collisions with vulnerable road users 
70.22 	and motorcyclists or other operators of two- or three-wheeled vehicles.

70.23 	Sec. 55. Minnesota Statutes 2022, section 169.222, subdivision 2, is amended to read:
70.24 		Subd. 2.Manner and number riding. No bicycle, including a tandem bicycle, cargo 
70.25 	or utility bicycle, or trailer, shall be used to carry more persons at one time than the number 
70.26 	for which it is designed and equipped, except an adult rider may carry a child in a seat 
70.27 	designed for carrying children that is securely attached to the bicycle. (a) For purposes of 
70.28 	this subdivision,"bicycle" includes a tandem bicycle, electric-assisted bicycle, cargo or 
70.29 	utility bicycle, or trailer.
70.30 	(b) No person may operate a bicycle while carrying more than the number of riders for 
70.31 	which the bicycle is designed or equipped.
71.1 	(c) Notwithstanding paragraph (b), an adult bicycle operator may carry a child in a trailer 
71.2 	or seat designed for carrying children that is securely attached to a bicycle.

71.3 	Sec. 56. Minnesota Statutes 2022, section 169.222, subdivision 6a, is amended to read:
71.4 		Subd. 6a.Electric-assisted bicycle; riding rules. (a) A person may operate an 
71.5 	electric-assisted bicycle in the same manner as provided for operation of other bicycles, 
71.6 	including but not limited to operation on the shoulder of a roadway, a bicycle lane, and a 
71.7 	bicycle route, and operation without the motor engaged on a bikeway or bicycle trail.
71.8 	(b) A person may operate a class 1 or class 2 electric-assisted bicycle with the motor 
71.9 	engaged on a bicycle path, bicycle trail, or shared use path unless prohibited under section 
71.10 	85.015, subdivision 1d; 85.018, subdivision 2, paragraph (d); or 160.263, subdivision 2, 
71.11 	paragraph (b), as applicable.
71.12 	(c) A person may operate a class 3 electric-assisted bicycle or multiple mode 
71.13 	electric-assisted bicycle with the motor engaged on a bicycle path, bicycle trail, or shared 
71.14 	use path unless the local authority or state agency having jurisdiction over the bicycle path 
71.15 	or trail prohibits the operation.
71.16 	(d) The local authority or state agency having jurisdiction over a trail or over a bike park 
71.17 	that is designated as nonmotorized and that has a natural surface tread made by clearing 
71.18 	and grading the native soil with no added surfacing materials may regulate the operation of 
71.19 	an electric-assisted bicycle.
71.20 	(e) No A person under the age of 15 shall must not operate an electric-assisted bicycle.

71.21 	Sec. 57. Minnesota Statutes 2022, section 169.222, subdivision 6b, is amended to read:
71.22 		Subd. 6b.Electric-assisted bicycle; equipment. (a) The manufacturer or distributor of 
71.23 	an electric-assisted bicycle must apply a label to the bicycle that is permanently affixed in 
71.24 	a prominent location. The label must contain the classification class number, top assisted 
71.25 	speed, and motor wattage of the electric-assisted bicycle, and must be printed in a legible 
71.26 	font with at least 9-point type. A multiple mode electric-assisted bicycle must have labeling 
71.27 	that identifies the highest class or each of the electric-assisted bicycle classes in which it is 
71.28 	capable of operating.
71.29 	(b) A person must not modify an electric-assisted bicycle to change the motor-powered 
71.30 	speed capability or motor engagement so that the bicycle no longer meets the requirements 
71.31 	for the applicable class, unless:
71.32 	(1) the person replaces the label required in paragraph (a) with revised information.; or
72.1 	(2) for a vehicle that no longer meets the requirements for any electric-assisted bicycle 
72.2 	class, the person removes the labeling as an electric-assisted bicycle.
72.3 	(c) An electric-assisted bicycle must operate in a manner so that the electric motor is 
72.4 	disengaged or ceases to function when the rider stops pedaling or: (1) when the brakes are 
72.5 	applied; or (2) except for a class 2 electric-assisted bicycle or a multiple mode 
72.6 	electric-assisted bicycle operating in class 2 mode, when the rider stops pedaling.
72.7 	(d) A class 3 electric-assisted bicycle or multiple mode electric-assisted bicycle must 
72.8 	be equipped with a speedometer that displays the speed at which the bicycle is traveling in 
72.9 	miles per hour.
72.10 	(e) A multiple mode electric-assisted bicycle equipped with a throttle must not be capable 
72.11 	of exceeding 20 miles per hour on motorized propulsion alone in any mode when the throttle 
72.12 	is engaged.

72.13 	Sec. 58. Minnesota Statutes 2023 Supplement, section 169.223, subdivision 4, is amended 
72.14 	to read:
72.15 		Subd. 4.Headlight requirement. The provisions of section 169.974, subdivision 5, 
72.16 	paragraph (i) (k), apply to motorized bicycles that are equipped with headlights. A new 
72.17 	motorized bicycle sold or offered for sale in Minnesota must be equipped with a headlight.

72.18 	EFFECTIVE DATE. This section is effective July 1, 2025.

72.19 	Sec. 59. Minnesota Statutes 2022, section 169.346, subdivision 2, is amended to read:
72.20 		Subd. 2.Disability parking space signs. (a) Parking spaces reserved for physically 
72.21 	disabled persons must be designated and identified by the posting of signs incorporating 
72.22 	the international symbol of access in white on blue and indicating that violators are subject 
72.23 	to a fine of up to $200. These parking spaces are reserved for disabled persons with motor 
72.24 	vehicles displaying the required certificate, plates, permit valid for 30 days, or insignia.
72.25 	(b) For purposes of this subdivision, a parking space that is clearly identified as reserved 
72.26 	for physically disabled persons by a permanently posted sign that does not meet all design 
72.27 	standards, is considered designated and reserved for physically disabled persons. A sign 
72.28 	posted for the purpose of this section must be visible from inside a motor vehicle parked in 
72.29 	the space, be kept clear of snow or other obstructions which block its visibility, and be 
72.30 	nonmovable.
72.31 	(c) By August 1, 2024, the Minnesota Council on Disability must select and propose a 
72.32 	statewide uniform disability parking space sign that is consistent with the Americans with 
73.1 	Disabilities Act. The selected and proposed sign must not display any variation of the word 
73.2 	"handicapped." As part of selecting and proposing a statewide uniform disability parking 
73.3 	space sign, the Minnesota Council on Disability may encourage owners or managers of 
73.4 	property to replace existing disability parking space signs at the owner's earliest opportunity 
73.5 	once the sign is made available for distribution.
73.6 	(d) Beginning on August 1, 2025, an applicable owner or manager of property on which 
73.7 	a disability parking sign may be located must install and display the new uniform disability 
73.8 	parking sign required in paragraph (c) at:
73.9 	(1) newly created on-site parking facilities; and
73.10 	(2) existing on-site parking facilities when the manager or owner replaces existing 
73.11 	disability parking space signs.

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

73.13 	Sec. 60. [169.515] LIGHTS ON GRANT PROGRAM.
73.14 		Subdivision 1.Definition. For purposes of this section, "high poverty area" means a 
73.15 	census tract as reported in the most recently completed decennial census published by the 
73.16 	United States Bureau of the Census that has a poverty area rate of at least 20 percent or in 
73.17 	which the median family income does not exceed 80 percent of the greater of the statewide 
73.18 	or metropolitan median family income.
73.19 		Subd. 2.Grant program established. The Lights On grant program is established under 
73.20 	this section to provide drivers on Minnesota roads with vouchers of up to $250 to use at 
73.21 	participating auto repair shops to repair or replace broken or malfunctioning lighting 
73.22 	equipment required under sections 169.49 to 169.51.
73.23 		Subd. 3.Eligibility. Counties, cities, towns, the State Patrol, and local law enforcement 
73.24 	agencies, including law enforcement agencies of a federally recognized Tribe, as defined 
73.25 	in United States Code, title 25, section 5304(e), are eligible to apply for grants under this 
73.26 	section.
73.27 		Subd. 4.Application. (a) The commissioner of public safety must develop application 
73.28 	materials and procedures for the Lights On grant program.
73.29 	(b) The application must describe the type or types of intended vouchers, the amount of 
73.30 	money requested, and any other information deemed necessary by the commissioner.
73.31 	(c) Applicants must submit an application under this section in the form and manner 
73.32 	prescribed by the commissioner.
74.1 	(d) Applicants must describe how grant money will be used to provide and distribute 
74.2 	vouchers to drivers.
74.3 		Subd. 5.Use of grant award. (a) Applicants must keep records of vouchers distributed 
74.4 	and records of all expenses associated with awarded grant money.
74.5 	(b) Applicants must not use awarded grant money for administrative costs. A nonstate 
74.6 	organization that contracts with the commissioner to operate the program must not retain 
74.7 	any of the grant money for administrative costs.
74.8 		Subd. 6.Vouchers. (a) An applicant must not distribute more than one voucher per 
74.9 	motor vehicle in a 90-day period.
74.10 	(b) A voucher that is distributed to a driver must contain the following information:
74.11 	(1) the motor vehicle license plate number;
74.12 	(2) the date of issuance; and
74.13 	(3) the badge number of the peace officer distributing the voucher.
74.14 		Subd. 7.Grant criteria. Preference for grant awards must be given to applicants whose 
74.15 	proposals provide resources and vouchers to individuals residing in geographic areas that 
74.16 	(1) have higher crash rates or higher numbers of tickets issued for broken or malfunctioning 
74.17 	lighting equipment, or (2) are high poverty areas.
74.18 		Subd. 8.Reporting. (a) By February 1 each year, grant recipients must submit a report 
74.19 	to the commissioner itemizing all expenditures made using grant money during the previous 
74.20 	calendar year, the purpose of each expenditure, and the disposition of each contact made 
74.21 	with drivers with malfunctioning or broken lighting equipment. The report must be in the 
74.22 	form and manner prescribed by the commissioner.
74.23 	(b) By March 15 each year, the commissioner must submit a report to the chairs and 
74.24 	ranking minority members of the legislative committees with jurisdiction over transportation 
74.25 	policy and finance. The report must list, for the previous calendar year:
74.26 	(1) the participating grant recipients and the total number and dollar amount of vouchers 
74.27 	that each grant recipient distributed; and
74.28 	(2) the participating auto repair shops and the total number and dollar amount of vouchers 
74.29 	that each received.
74.30 	Grant recipients and any program organization contracted by the commissioner must provide 
74.31 	information as requested by the commissioner to complete the report required under this 
74.32 	paragraph.

75.1 	Sec. 61. Minnesota Statutes 2022, section 169.974, subdivision 5, is amended to read:
75.2 		Subd. 5.Driving rules. (a) An operator of a motorcycle must ride only upon a permanent 
75.3 	and regular seat which is attached to the vehicle for that purpose. No other person shall may
75.4 	ride on a motorcycle, except that passengers may ride (1) upon a permanent and regular 
75.5 	operator's seat if designed for two persons, (2) upon additional seats attached to or in the 
75.6 	vehicle, or (3) in a sidecar attached to the vehicle. The operator of a motorcycle is prohibited 
75.7 	from carrying passengers in a number in excess of the designed capacity of the motorcycle 
75.8 	or sidecar attached to it. A passenger is prohibited from being carried in a position that 
75.9 	interferes with the safe operation of the motorcycle or the view of the operator.
75.10 	(b) No person shall may ride upon a motorcycle as a passenger unless the person can 
75.11 	reach the footrests or floorboards with both feet.
75.12 	(c) Except for passengers of sidecars, drivers and passengers of three-wheeled 
75.13 	motorcycles, and persons in an autocycle, no person shall may operate or ride upon a 
75.14 	motorcycle except while sitting astride the seat, facing forward, with one leg on either side 
75.15 	of the motorcycle.
75.16 	(d) No person shall may operate a motorcycle while carrying animals, packages, bundles, 
75.17 	or other cargo which that prevent the person from keeping both hands on the handlebars.
75.18 	(e) No person shall operate a motorcycle between lanes of moving or stationary vehicles 
75.19 	headed in the same direction, nor shall any person drive a motorcycle abreast of or overtake 
75.20 	or pass another vehicle within the same traffic lane. Motorcycles may, with the consent of 
75.21 	both drivers, be operated not more than two abreast in a single traffic lane if the vehicles 
75.22 	fit safely within the designated space of the lane.
75.23 	(f) Except under the conditions specified in paragraph (g), no person may operate a 
75.24 	motorcycle:
75.25 	(1) between lanes of moving or stationary vehicles headed in the same direction of travel;
75.26 	(2) abreast of moving or stationary vehicles within the same traffic lane; or
75.27 	(3) to overtake or pass another vehicle within the same traffic lane.
75.28 	(g) A person may operate a motorcycle and overtake and pass another vehicle in the 
75.29 	same direction of travel and within the same traffic lane if the motorcycle is operated:
75.30 	(1) at not more than 25 miles per hour; and
75.31 	(2) no more than 15 miles per hour over the speed of traffic in the relevant traffic lanes.
76.1 	(h) Motor vehicles including motorcycles are entitled to the full use of a traffic lane and 
76.2 	no motor vehicle may be driven or operated in a manner so as to deprive a motorcycle of 
76.3 	the full use of a traffic lane.
76.4 	(g) (i) A person operating a motorcycle upon a roadway must be granted the rights and 
76.5 	is subject to the duties applicable to a motor vehicle as provided by law, except as to those 
76.6 	provisions which by their nature can have no application.
76.7 	(h) Paragraph (e) (j) Paragraphs (e) and (f) of this subdivision does do not apply to police 
76.8 	officers in the performance of their official duties.
76.9 	(i) (k) No person shall may operate a motorcycle on a street or highway unless the 
76.10 	headlight or headlights are lighted at all times the motorcycle is so operated.
76.11 	(j) (l) A person parking a motorcycle on the roadway of a street or highway must:
76.12 	(1) if parking in a marked parking space, park the motorcycle completely within the 
76.13 	marked space; and
76.14 	(2) park the motorcycle in such a way that the front of the motorcycle is pointed or 
76.15 	angled toward the nearest lane of traffic to the extent practicable and necessary to allow the 
76.16 	operator to (i) view any traffic in both directions of the street or highway without having 
76.17 	to move the motorcycle into a lane of traffic and without losing balance or control of the 
76.18 	motorcycle, and (ii) ride the motorcycle forward and directly into a lane of traffic when the 
76.19 	lane is sufficiently clear of traffic.

76.20 	EFFECTIVE DATE. This section is effective July 1, 2025.

76.21 	Sec. 62. Minnesota Statutes 2022, section 169.99, subdivision 1, is amended to read:
76.22 		Subdivision 1.Form. (a) Except as provided in subdivision 3,; section 169.147, 
76.23 	subdivision 8; and section 169.999, subdivision 3, there shall be a uniform ticket issued 
76.24 	throughout the state by the police and peace officers or by any other person for violations 
76.25 	of this chapter and ordinances in conformity thereto. Such uniform traffic ticket shall be in 
76.26 	the form and have the effect of a summons and complaint. Except as provided in paragraph 
76.27 	(b), the uniform ticket shall state that if the defendant fails to appear in court in response to 
76.28 	the ticket, an arrest warrant may be issued. The uniform traffic ticket shall consist of four 
76.29 	parts, on paper sensitized so that copies may be made without the use of carbon paper, as 
76.30 	follows:
76.31 	(1) the complaint, with reverse side for officer's notes for testifying in court, driver's 
76.32 	past record, and court's action, printed on white paper;
77.1 	(2) the abstract of court record for the Department of Public Safety, which shall be a 
77.2 	copy of the complaint with the certificate of conviction on the reverse side, printed on yellow 
77.3 	paper;
77.4 	(3) the police record, which shall be a copy of the complaint and of the reverse side of 
77.5 	copy (1), printed on pink paper; and
77.6 	(4) the summons, with, on the reverse side, such information as the court may wish to 
77.7 	give concerning the Traffic Violations Bureau, and a plea of guilty and waiver, printed on 
77.8 	off-white tag stock.
77.9 	(b) If the offense is a petty misdemeanor, the uniform ticket must state that a failure to 
77.10 	appear will be considered a plea of guilty and waiver of the right to trial, unless the failure 
77.11 	to appear is due to circumstances beyond the person's control.

77.12 	EFFECTIVE DATE. This section is effective August 1, 2025, and expires August 1, 
77.13 	2029.

77.14 	Sec. 63. Minnesota Statutes 2022, section 171.01, is amended by adding a subdivision to 
77.15 	read:
77.16 		Subd. 45c.Residence address and permanent mailing address. "Residence address" 
77.17 	and "permanent mailing address" mean, for purposes of a driver's license or Minnesota 
77.18 	identification card, the postal address of the permanent domicile within this state where an 
77.19 	individual:
77.20 	(1) resides;
77.21 	(2) intends to reside within 30 calendar days after the date of application; or
77.22 	(3) intends to return whenever absent.

77.23 	EFFECTIVE DATE. This section is effective October 1, 2024, for applications on or 
77.24 	after that date.

77.25 	Sec. 64. Minnesota Statutes 2022, section 171.01, is amended by adding a subdivision to 
77.26 	read:
77.27 		Subd. 48e.Temporary mailing address. "Temporary mailing address" means the 
77.28 	mailing address of any place where a person regularly or occasionally stays and may receive 
77.29 	mail in their name other than the person's residence address. A temporary mailing address 
77.30 	does not include the designated address under section 5B.05.

78.1 	EFFECTIVE DATE. This section is effective October 1, 2024, for applications on or 
78.2 	after that date.

78.3 	Sec. 65. Minnesota Statutes 2023 Supplement, section 171.06, subdivision 3, is amended 
78.4 	to read:
78.5 		Subd. 3.Contents of application; other information. (a) An application must:
78.6 	(1) state the full name, date of birth, sex, and either (i) the residence address of the 
78.7 	applicant, or (ii) designated address under section 5B.05;
78.8 	(2) as may be required by the commissioner, contain a description of the applicant and 
78.9 	any other facts pertaining to the applicant, the applicant's driving privileges, and the 
78.10 	applicant's ability to operate a motor vehicle with safety;
78.11 	(3) state:
78.12 	(i) the applicant's Social Security number; or
78.13 	(ii) if the applicant does not have a Social Security number and is applying for a 
78.14 	Minnesota identification card, instruction permit, or class D provisional or driver's license, 
78.15 	that the applicant elects not to specify a Social Security number;
78.16 	(4) contain a notification to the applicant of the availability of a living will/health care 
78.17 	directive designation on the license under section 171.07, subdivision 7;
78.18 	(5) include a method for the applicant to:
78.19 	(i) request a veteran designation on the license under section 171.07, subdivision 15, 
78.20 	and the driving record under section 171.12, subdivision 5a;
78.21 	(ii) indicate a desire to make an anatomical gift under subdivision 3b, paragraph (e);
78.22 	(iii) as applicable, designate document retention as provided under section 171.12, 
78.23 	subdivision 3c;
78.24 	(iv) indicate emergency contacts as provided under section 171.12, subdivision 5b;
78.25 	(v) indicate the applicant's race and ethnicity; and
78.26 	(vi) indicate caretaker information as provided under section 171.12, subdivision 5c; 
78.27 	and
78.28 	(vii) indicate a temporary mailing address separate from the applicant's residence address 
78.29 	listed on the identification card or license; and
78.30 	(6) meet the requirements under section 201.161, subdivision 3.
79.1 	(b) Applications must be accompanied by satisfactory evidence demonstrating:
79.2 	(1) identity, date of birth, and any legal name change if applicable; and
79.3 	(2) for driver's licenses and Minnesota identification cards that meet all requirements of 
79.4 	the REAL ID Act:
79.5 	(i) principal residence address in Minnesota, including application for a change of address, 
79.6 	unless the applicant provides a designated address under section 5B.05;
79.7 	(ii) Social Security number, or related documentation as applicable; and
79.8 	(iii) lawful status, as defined in Code of Federal Regulations, title 6, section 37.3.
79.9 	(c) An application for an enhanced driver's license or enhanced identification card must 
79.10 	be accompanied by:
79.11 	(1) satisfactory evidence demonstrating the applicant's full legal name and United States 
79.12 	citizenship; and
79.13 	(2) a photographic identity document.
79.14 	(d) A valid Department of Corrections or Federal Bureau of Prisons identification card 
79.15 	containing the applicant's full name, date of birth, and photograph issued to the applicant 
79.16 	is an acceptable form of proof of identity in an application for an identification card, 
79.17 	instruction permit, or driver's license as a secondary document for purposes of Minnesota 
79.18 	Rules, part 7410.0400, and successor rules.
79.19 	(e) An application form must not provide for identification of (1) the accompanying 
79.20 	documents used by an applicant to demonstrate identity, or (2) except as provided in 
79.21 	paragraphs (b) and (c), the applicant's citizenship, immigration status, or lawful presence 
79.22 	in the United States. The commissioner and a driver's license agent must not inquire about 
79.23 	an applicant's citizenship, immigration status, or lawful presence in the United States, except 
79.24 	as provided in paragraphs (b) and (c).
79.25 	(f) If an applicant designates a temporary mailing address under paragraph (a), clause 
79.26 	(5), item (vii), the commissioner must use the temporary mailing address in lieu of the 
79.27 	applicant's residence address for delivery of the driver's license or identification card. The 
79.28 	commissioner must send all other correspondence to the applicant's residence address. 
79.29 	Nothing in this paragraph or paragraph (a), clause (5), item (vii), may be construed to modify 
79.30 	or remove proof of residency requirements at the time of application for an initial driver's 
79.31 	permit, driver's license, or identification card.

80.1 	EFFECTIVE DATE. This section is effective October 1, 2024, for applications on or 
80.2 	after that date.

80.3 	Sec. 66. Minnesota Statutes 2022, section 171.06, subdivision 3b, is amended to read:
80.4 		Subd. 3b.Information for applicants. (a) The commissioner must develop summary 
80.5 	information on identity document options. The summary information must be available on 
80.6 	the department's website and at every location where a person may apply for an enhanced, 
80.7 	REAL ID compliant, or noncompliant driver's license or identification card.
80.8 	(b) The summary information must, at a minimum, include:
80.9 	(1) each available type of driver's license and Minnesota identification card, including 
80.10 	a noncompliant license or identification card, an enhanced driver's license, and an enhanced 
80.11 	identification card;
80.12 	(2) the official purposes of and limitations on use for each type of driver's license and 
80.13 	Minnesota identification card; and
80.14 	(3) an overview of data shared outside the state, including through electronic validation 
80.15 	or verification systems, as part of the application and issuance of each type.
80.16 	(c) The commissioner must ensure that the summary information is available to driver's 
80.17 	license and identification card applicants. Renewal notifications mailed to driver's license 
80.18 	and identification card holders must include the website address that displays the summary 
80.19 	information.
80.20 	(d) An applicant for an enhanced or noncompliant license or identification card must 
80.21 	sign an acknowledgment that the applicant understands the limitations on use of the license 
80.22 	or card.
80.23 	(e) If the applicant does not indicate a desire to make an anatomical gift when the 
80.24 	application is made, the applicant must be offered a donor document in accordance with 
80.25 	section 171.07, subdivision 5. The application must contain statements sufficient to comply 
80.26 	with the requirements of the Darlene Luther Revised Uniform Anatomical Gift Act, chapter 
80.27 	525A, so that execution of the application or donor document will make the anatomical gift 
80.28 	as provided in section 171.07, subdivision 5, for those indicating a desire to make an 
80.29 	anatomical gift. The application must be accompanied by information describing Minnesota 
80.30 	laws regarding anatomical gifts and the need for and benefits of anatomical gifts, and the 
80.31 	legal implications of making an anatomical gift, including the law governing revocation of 
80.32 	anatomical gifts. The commissioner shall distribute a notice that must accompany all 
80.33 	applications for and renewals of a driver's license or Minnesota identification card. The 
81.1 	notice must be prepared in conjunction with a Minnesota organ procurement organization 
81.2 	that is certified by the federal Department of Health and Human Services and must include:
81.3 	(1) a statement that provides a fair and reasonable description of the organ donation 
81.4 	process, the care of the donor body after death, and the importance of informing family 
81.5 	members of the donation decision; and
81.6 	(2) a telephone number in a certified Minnesota organ procurement organization that 
81.7 	may be called with respect to questions regarding anatomical gifts.
81.8 	(f) The application must be accompanied also by information containing relevant facts 
81.9 	relating to:
81.10 	(1) the effect of alcohol on driving ability;
81.11 	(2) the effect of mixing alcohol with drugs;
81.12 	(3) the laws of Minnesota relating to operation of a motor vehicle while under the 
81.13 	influence of alcohol or a controlled substance; and
81.14 	(4) the levels of alcohol-related fatalities and accidents in Minnesota and of arrests for 
81.15 	alcohol-related violations.
81.16 	(g) The commissioner must provide information on the department's website about the 
81.17 	option for an applicant to designate a temporary mailing address. The information on the 
81.18 	department's website must:
81.19 	(1) be easily accessible and address frequently asked questions;
81.20 	(2) detail the department's requirements for the use of a temporary mailing address;
81.21 	(3) compare the use of a temporary mailing address to the use of an applicant's residence 
81.22 	address; and
81.23 	(4) clarify that a driver's license or identification card will not be delivered to a forwarded 
81.24 	mail address.

81.25 	EFFECTIVE DATE. This section is effective October 1, 2024, for applications on or 
81.26 	after that date.

81.27 	Sec. 67. Minnesota Statutes 2022, section 171.061, is amended by adding a subdivision 
81.28 	to read:
81.29 		Subd. 5a.Competitive bidding. (a) Notwithstanding any statute or rule to the contrary, 
81.30 	if a driver's license agent appointed under this section permanently stops offering services 
81.31 	at the approved office location and permanently closes the approved office location, the 
82.1 	commissioner must use a competitive bidding process for the appointment of a replacement 
82.2 	driver's license agent. If available, the replacement driver's license agent appointed by the 
82.3 	commissioner under this section must continue to offer services at the approved office 
82.4 	location. If the existing office location is not available to the replacement driver's license 
82.5 	agent, the replacement office location must be at a location that must be approved by the 
82.6 	commissioner and must serve a similar service area as the existing office location.
82.7 	(b) The commissioner must not give a preference to a partner, owner, manager, or 
82.8 	employee of the driver's license agent that has permanently stopped offering services at the 
82.9 	closed office location in a competitive bidding process.
82.10 	(c) The commissioner must adopt rules to administer and enforce a competitive bidding 
82.11 	process to select a replacement driver's license agent. If the replacement driver's license 
82.12 	agent elects to not offer services at the office location of the prior agent, Minnesota Rules, 
82.13 	chapter 7404, governing the selection of a proposed office location of a driver's license 
82.14 	agent, applies.

82.15 	EFFECTIVE DATE. This section is effective October 1, 2025.

82.16 	Sec. 68. Minnesota Statutes 2023 Supplement, section 171.0705, subdivision 2, is amended 
82.17 	to read:
82.18 		Subd. 2.Driver's manual; bicycle traffic vulnerable road users. The commissioner 
82.19 	shall must include in each edition of the driver's manual published by the department a 
82.20 	section relating to vulnerable road users and motorcyclists or operators of two- or 
82.21 	three-wheeled vehicles that, at a minimum, includes:
82.22 	(1) bicycle traffic laws, including any changes in the law which affect bicycle traffic.;
82.23 	(2) traffic laws related to pedestrians and pedestrian safety; and
82.24 	(3) traffic laws related to motorcycles, autocycles, motorized bicycles, motorized foot 
82.25 	scooters, and electric personal assistive mobility devices.

82.26 	EFFECTIVE DATE. This section is effective the day following final enactment and 
82.27 	applies to each edition of the manual published on or after that date.

83.1 	Sec. 69. Minnesota Statutes 2022, section 171.12, is amended by adding a subdivision to 
83.2 	read:
83.3 		Subd. 6a.Driving record; traffic safety camera system. (a) Except as provided in 
83.4 	paragraph (b), the commissioner must not record on an individual's driving record any 
83.5 	violation of:
83.6 	(1) a traffic-control signal under section 169.06, subdivision 10; or
83.7 	(2) a speed limit under section 169.14, subdivision 13.
83.8 	(b) This subdivision does not apply to:
83.9 	(1) a violation that occurs in a commercial motor vehicle; or
83.10 	(2) a violation committed by a holder of a class A, B, or C commercial driver's license 
83.11 	or commercial driver learner's permit, without regard to whether the violation was committed 
83.12 	in a commercial motor vehicle or another vehicle.
83.13 	(c) This subdivision applies to violations committed on or after August 1, 2025, and 
83.14 	before August 1, 2029.

83.15 	Sec. 70. Minnesota Statutes 2022, section 171.13, subdivision 9, is amended to read:
83.16 		Subd. 9.Online driver's license knowledge testing authorization. (a) The commissioner 
83.17 	must implement online knowledge testing as provided in this subdivision. The commissioner 
83.18 	must not charge a fee to a driver education program or an authorized entity for access to 
83.19 	the online knowledge testing system or for administering the online knowledge test. The 
83.20 	commissioner must administer the fourth or subsequent knowledge test for a person.
83.21 	(b) Upon written request from a driver education program licensed by the department, 
83.22 	the commissioner must grant access to the department's web-based knowledge testing system 
83.23 	to the driver education program. Once granted access to the online knowledge testing system, 
83.24 	a driver education program may administer the online knowledge test to a student of the 
83.25 	program.
83.26 	(c) An entity other than a driver education program may apply to the commissioner for 
83.27 	authority to administer online knowledge tests. The commissioner may approve or disapprove 
83.28 	an application for administering the online knowledge tests under this paragraph. Upon 
83.29 	approving an application of an entity, the commissioner must grant access to the department's 
83.30 	web-based knowledge testing system to that authorized entity. Once granted access to the 
83.31 	online knowledge testing system, the authorized entity may administer the online knowledge 
83.32 	test.
84.1 	(d) A driver education program or authorized entity:
84.2 	(1) must provide all computers and equipment for persons that take the online knowledge 
84.3 	test;
84.4 	(2) must provide appropriate proctors to monitor persons taking the online knowledge 
84.5 	test; and
84.6 	(3) may charge a fee of no more than $10 for administering the online knowledge test.
84.7 	(e) For purposes of paragraph (d), clause (2), a proctor must be:
84.8 	(1) an employee of the driver education program, authorized entity, or a state or local 
84.9 	government;
84.10 	(2) a driver's license agent; or
84.11 	(3) a classroom teacher, school administrator, or paraprofessional at a public or private 
84.12 	school, excluding a home school.
84.13 	The proctor must be physically present at the location where the test is being administered. 
84.14 	A proctor must not be a relative of the person taking the test. For purposes of this paragraph, 
84.15 	a relative is a spouse, fiancee, fiance, grandparent, parent, child, sibling, or legal guardian, 
84.16 	including adoptive, half, step, and in-law relationships.

84.17 	EFFECTIVE DATE. This section is effective August 1, 2025.

84.18 	Sec. 71. Minnesota Statutes 2022, section 171.16, subdivision 3, is amended to read:
84.19 		Subd. 3. Failure to pay fine.  The commissioner is prohibited from suspending a person's 
84.20 	driver's license based solely on the fact that a person:
84.21 	(1) has been convicted of:
84.22 	(i) violating a law of this state or an ordinance of a political subdivision which regulates 
84.23 	the operation or parking of motor vehicles,;
84.24 	(ii) a violation under section 169.06, subdivision 10; or
84.25 	(iii) a violation under section 169.14, subdivision 13;
84.26 	(2) has been sentenced to the payment of a fine or had a surcharge levied against that 
84.27 	person, or sentenced to a fine upon which a surcharge was levied,; and
84.28 	(3) has refused or failed to comply with that sentence or to pay the surcharge.

85.1 	Sec. 72. Minnesota Statutes 2023 Supplement, section 171.301, subdivision 3, is amended 
85.2 	to read:
85.3 		Subd. 3.Fees prohibited. (a) For a reintegration driver's license under this section:
85.4 	(1) the commissioner must not impose:
85.5 	(i) a fee, surcharge, or filing fee under section 171.06, subdivision 2; or
85.6 	(ii) a reinstatement fee under sections 171.20, subdivision 4, and 171.29, subdivision 2; 
85.7 	or
85.8 	(iii) an endorsement fee under section 171.06, subdivision 2a; and
85.9 	(2) a driver's license agent must not impose a filing fee under section 171.061, subdivision 
85.10 	4.
85.11 	(b) Issuance of a reintegration driver's license does not forgive or otherwise discharge 
85.12 	any unpaid fees or fines.

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

85.14 	Sec. 73. Minnesota Statutes 2023 Supplement, section 171.301, subdivision 6, is amended 
85.15 	to read:
85.16 		Subd. 6.Issuance of regular driver's license. (a) Notwithstanding any statute or rule 
85.17 	to the contrary, the commissioner must issue a REAL ID-compliant or noncompliant license 
85.18 	to a person who possesses a reintegration driver's license if:
85.19 	(1) the person has possessed the reintegration driver's license for at least one full year;
85.20 	(2) the reintegration driver's license has not been canceled under subdivision 4 and has 
85.21 	not expired under subdivision 5;
85.22 	(3) the person meets the application requirements under section 171.06, including payment 
85.23 	of the applicable fees, surcharge, and filing fee under sections 171.06, subdivisions 2 and 
85.24 	2a, and 171.061, subdivision 4; and
85.25 	(4) issuance of the license does not conflict with the requirements of the nonresident 
85.26 	violator compact.
85.27 	(b) The commissioner must forgive any outstanding balance due on a reinstatement fee 
85.28 	or surcharge under section sections 171.20, subdivision 4, and171.29, subdivision 2, for a 
85.29 	person who is eligible and applies for a license under paragraph (a).

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

86.1 	Sec. 74. Minnesota Statutes 2022, section 174.02, is amended by adding a subdivision to 
86.2 	read:
86.3 		Subd. 11.Tribal worksite training program. The commissioner must establish a Tribal 
86.4 	worksite training program for state-funded construction projects. The commissioner may 
86.5 	enter into an agreement with any private, public, or Tribal entity for the planning, designing, 
86.6 	developing, and hosting of the program. The commissioner must not use trunk highway 
86.7 	funds for the worksite training program if the state-funded construction project is not a 
86.8 	highway construction project.

86.9 	Sec. 75. Minnesota Statutes 2022, section 174.185, subdivision 2, is amended to read:
86.10 		Subd. 2.Required analysis. For each project in the reconditioning, resurfacing, and 
86.11 	road repair funding categories, the commissioner shall must perform a life-cycle cost analysis 
86.12 	and shall document the lowest life-cycle costs and all alternatives considered. The 
86.13 	commissioner shall must document the chosen pavement strategy and, if the lowest life 
86.14 	cycle is not selected, document the justification for the chosen strategy. A life-cycle cost 
86.15 	analysis is required for projects to be constructed after July 1, 2011.

86.16 	Sec. 76. Minnesota Statutes 2022, section 174.185, is amended by adding a subdivision 
86.17 	to read:
86.18 		Subd. 2a.Review and collaboration. (a) Before finalizing a pavement selection, the 
86.19 	commissioner must post a draft of the life-cycle cost analysis and the draft pavement selection 
86.20 	on the department's Office of Materials and Road Research website for 21 days. During 
86.21 	this period, the commissioner must allow industry association representatives to submit 
86.22 	questions and comments. The commissioner must collaborate with the person who submitted 
86.23 	the question or comment, where necessary, to ensure the commissioner fully understands 
86.24 	the question or comment. The commissioner must respond to each question or comment in 
86.25 	writing, which must include a description of any associated changes that will be made to 
86.26 	the life-cycle cost analysis.
86.27 	(b) After the review period under paragraph (a) closes, the commissioner may make 
86.28 	revisions, when deemed appropriate, to the life-cycle cost analysis in response to questions 
86.29 	or comments received. If the commissioner revises the type of pavement from concrete to 
86.30 	asphalt or from asphalt to concrete, the commissioner must post the revised life-cycle cost 
86.31 	analysis for review in accordance with the requirements under paragraph (a).

86.32 	EFFECTIVE DATE. This section is effective July 1, 2025.

87.1 	Sec. 77. Minnesota Statutes 2022, section 174.185, is amended by adding a subdivision 
87.2 	to read:
87.3 		Subd. 2b.Selection. (a) After the review period required in subdivision 2a and any 
87.4 	subsequent changes to the analysis, the commissioner must select the pavement strategy 
87.5 	and prepare a document of justification. At a minimum, the document of justification must:
87.6 	(1) explain why the pavement strategy was selected;
87.7 	(2) if the lowest life-cycle cost is not selected, justify why a strategy with a higher 
87.8 	life-cycle cost was selected; and
87.9 	(3) include all questions and comments received during the review period and the 
87.10 	commissioner's responses to each.
87.11 	(b) The commissioner must submit the analysis and document of justification to a licensed 
87.12 	professional engineer for review. A life-cycle cost analysis is not considered final until it 
87.13 	is certified and signed by a licensed professional engineer as provided by Minnesota Rules, 
87.14 	part 1800.4200.
87.15 	(c) For all projects that began construction on or after January 1, 2024, the commissioner 
87.16 	must store all life-cycle cost analyses and documents of justification on the department's 
87.17 	website in a manner that allows the public to easily access the documents.
87.18 	(d) After completing the certification and signature requirements in paragraph (b) and 
87.19 	the posting requirements in paragraph (c), the commissioner may advance the project to 
87.20 	substantial plan development.
87.21 	(e) For purposes of this subdivision, "substantial plan development" means the point in 
87.22 	time during the plan development process after which any further activities would preclude 
87.23 	any of the feasible pavement alternatives from being selected or constructed.

87.24 	EFFECTIVE DATE. This section is effective July 1, 2025.

87.25 	Sec. 78. Minnesota Statutes 2022, section 174.185, subdivision 3, is amended to read:
87.26 		Subd. 3.Report. By January 31 of each year, the commissioner shall must report annually
87.27 	to the chairs and ranking minority members of the senate and house of representatives
87.28 	legislative committees with jurisdiction over transportation policy and finance on life-cycle 
87.29 	cost analyses conducted under this section. At a minimum, the report must include 
87.30 	information on the results of the analyses required in under subdivision 2, the public review 
87.31 	under subdivision 2a, and the final selection and document of justification under subdivision 
87.32 	2b.

88.1 	EFFECTIVE DATE. This section is effective July 1, 2025.

88.2 	Sec. 79. Minnesota Statutes 2022, section 174.40, subdivision 3, is amended to read:
88.3 		Subd. 3.Safe routes to school accounts. (a) A safe routes to school account is established 
88.4 	in the bond proceeds fund. The account consists of state bond proceeds appropriated to the 
88.5 	commissioner. Money in the account may only be expended on bond-eligible costs of a 
88.6 	project receiving financial assistance as provided under this section. All uses of funds from 
88.7 	the account must be for publicly owned property.
88.8 	(b) A safe routes to school account is established in the general special revenue fund. 
88.9 	The account consists of funds as provided by law, and any other money donated, allotted, 
88.10 	transferred, or otherwise provided to the account. Money in the account may only be 
88.11 	expended on a project receiving financial assistance as provided under this section.

88.12 	Sec. 80. Minnesota Statutes 2023 Supplement, section 174.49, subdivision 6, is amended 
88.13 	to read:
88.14 		Subd. 6.Metropolitan counties; use of funds. (a) A metropolitan county must use 
88.15 	funds that are received under subdivision 5 as follows:
88.16 	(1) 41.5 percent for active transportation and transportation corridor safety studies;
88.17 	(2) 41.5 percent for:
88.18 	(i) repair, preservation, and rehabilitation of transportation systems; and
88.19 	(ii) roadway replacement to reconstruct, reclaim, or modernize a corridor without adding 
88.20 	traffic capacity, except for auxiliary lanes with a length of less than 2,500 feet; and
88.21 	(3) 17 percent for any of the following:
88.22 	(i) transit purposes, including but not limited to operations, maintenance, capital 
88.23 	maintenance, demand response service, and assistance to replacement service providers 
88.24 	under section 473.388;
88.25 	(ii) complete streets projects, as provided under section 174.75; and
88.26 	(iii) projects, programs, or operations activities that meet the requirements of a mitigation 
88.27 	action under section 161.178, subdivision 4.
88.28 	(b) Funds under paragraph (a), clause (3), must supplement and not supplant existing 
88.29 	sources of revenue.
89.1 	(c) A metropolitan county may use funds that are received under subdivision 5 as debt 
89.2 	service for obligations issued by the county in accordance with chapter 475, provided that 
89.3 	the obligations are issued for a use allowable under this section.

89.4 	Sec. 81. Minnesota Statutes 2023 Supplement, section 174.634, subdivision 2, is amended 
89.5 	to read:
89.6 		Subd. 2.Passenger rail account; transfers; appropriation. (a) A passenger rail account 
89.7 	is established in the special revenue fund. The account consists of funds as provided in this 
89.8 	subdivision and any other money donated, allotted, transferred, collected, or otherwise 
89.9 	provided to the account.
89.10 	(b) By July 15 annually beginning in calendar year 2027, the commissioner of revenue 
89.11 	must transfer an amount from the general fund to the passenger rail account that equals 50 
89.12 	percent of the portion of the state general tax under section 275.025 levied on railroad 
89.13 	operating property, as defined under section 273.13, subdivision 24, in the prior calendar 
89.14 	year.
89.15 	(c) Money in the account is annually appropriated to the commissioner of transportation 
89.16 	for the net operating and capital maintenance costs of intercity passenger rail, which may 
89.17 	include but are not limited to planning, designing, developing, constructing, equipping, 
89.18 	administering, operating, promoting, maintaining, and improving passenger rail service 
89.19 	within the state, after accounting for operating revenue, federal funds, and other sources.
89.20 	(d) By November 1 each year, the commissioner must report on the passenger rail account 
89.21 	to the chairs and ranking minority members of the legislative committees with jurisdiction 
89.22 	over transportation policy and finance. The report must, at a minimum, include:
89.23 	(1) the actual revenue and expenditures in each of the previous two fiscal years;
89.24 	(2) the budgeted and forecasted revenue and expenditures in the current fiscal year and 
89.25 	each fiscal year within the state forecast period;
89.26 	(3) the plan for collection of fees and revenue, as defined and authorized under 
89.27 	subdivision 3, in the current fiscal year and each fiscal year within the state forecast period; 
89.28 	and
89.29 	(4) the uses of expenditures or planned expenditures in each fiscal year included under 
89.30 	clauses (1) and (2).

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

90.1 	Sec. 82. Minnesota Statutes 2023 Supplement, section 174.634, is amended by adding a 
90.2 	subdivision to read:
90.3 		Subd. 3.Fee and revenue collection authorized. (a) For purposes of this subdivision, 
90.4 	"fees and revenue" means:
90.5 	(1) ridership fees or fares, including ticket sales;
90.6 	(2) revenue from the sale of on-board commissary and convenience goods to the traveling 
90.7 	public; and
90.8 	(3) revenue from the sale of promotional goods related to passenger rail routes and 
90.9 	corridors within Minnesota.
90.10 	(b) The commissioner may, directly or through a contractor, vendor, operator, or 
90.11 	partnership with a federal or state government entity, including Amtrak, collect fees and 
90.12 	revenue related to passenger rail services within the state, as specified under this subdivision.
90.13 	(c) Fees and revenue under this subdivision may be collected as determined by the 
90.14 	commissioner and are not subject to section 16A.1283, except that, if priced exclusively by 
90.15 	the commissioner, a ridership fee or fare must not exceed an annual five percent increase 
90.16 	and the price of a commissary, convenience, or promotional good must not exceed an annual 
90.17 	ten percent increase.
90.18 	(d) Fees and revenue collected under this subdivision must be deposited in the passenger 
90.19 	rail account in the special revenue fund.

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

90.21 	Sec. 83. Minnesota Statutes 2022, section 174.75, subdivision 1, is amended to read:
90.22 		Subdivision 1.Definition Definitions. (a) For purposes of this section, the following 
90.23 	terms have the meanings given.
90.24 	(b) "Complete streets" is the planning, scoping, design, implementation, operation, and 
90.25 	maintenance of roads in order to reasonably address the safety and accessibility needs of 
90.26 	users of all ages and abilities. Complete streets considers the needs of motorists, pedestrians, 
90.27 	transit users and vehicles, bicyclists, and commercial and emergency vehicles moving along 
90.28 	and across roads, intersections, and crossings in a manner that is sensitive to the local context 
90.29 	and recognizes that the needs vary in urban, suburban, and rural settings.
90.30 	(c) "Vulnerable road user" has the meaning given in section 169.011, subdivision 92b.

91.1 	Sec. 84. Minnesota Statutes 2022, section 174.75, subdivision 2, is amended to read:
91.2 		Subd. 2.Implementation. (a) The commissioner shall must implement a complete 
91.3 	streets policy after consultation with stakeholders, state and regional agencies, local 
91.4 	governments, and road authorities. The commissioner, after such consultation, shall must
91.5 	address relevant protocols, guidance, standards, requirements, and training, and shall 
91.6 	integrate.
91.7 	(b) The complete streets policy must include but is not limited to:
91.8 	(1) integration of related principles of context-sensitive solutions.;
91.9 	(2) integration throughout the project development process;
91.10 	(3) methods to evaluate inclusion of active transportation facilities in a project, which 
91.11 	may include but are not limited to sidewalks, crosswalk markings, pedestrian accessibility, 
91.12 	and bikeways; and
91.13 	(4) consideration of consultation with other road authorities regarding existing and 
91.14 	planned active transportation network connections.

91.15 	Sec. 85. Minnesota Statutes 2022, section 174.75, is amended by adding a subdivision to 
91.16 	read:
91.17 		Subd. 2a.Implementation guidance. The commissioner must maintain guidance that 
91.18 	accompanies the complete streets policy under this section. The guidance must include 
91.19 	sections on:
91.20 	(1) an analysis framework that provides for:
91.21 	(i) identification of characteristics of a project;
91.22 	(ii) highway system categorization based on context, including population density, land 
91.23 	use, density and scale of surrounding development, volume of highway use, and the nature 
91.24 	and extent of active transportation; and
91.25 	(iii) relative emphasis for different road system users in each of the categories under 
91.26 	item (ii) in a manner that supports safety and mobility of vulnerable road users, motorcyclists 
91.27 	or other operators of two- or three-wheeled vehicles, and public transit users; and
91.28 	(2) an analysis of speed limit reductions and associated roadway design modifications 
91.29 	to support safety and mobility in active transportation.

92.1 	Sec. 86. Minnesota Statutes 2022, section 216E.02, subdivision 1, is amended to read:
92.2 		Subdivision 1.Policy. The legislature hereby declares it to be the policy of the state to 
92.3 	locate large electric power facilities and high voltage transmission lines in an orderly manner 
92.4 	compatible with environmental preservation and the efficient use of resources. In accordance 
92.5 	with this policy, the commission shall choose locations that minimize adverse human and 
92.6 	environmental impact while insuring continuing electric power system reliability and integrity 
92.7 	and insuring that electric energy needs are met and fulfilled in an orderly and timely fashion.

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

92.9 	Sec. 87. Minnesota Statutes 2023 Supplement, section 219.015, subdivision 2, is amended 
92.10 	to read:
92.11 		Subd. 2.Railroad company assessment; account; appropriation. (a) As provided in 
92.12 	this subdivision, the commissioner must annually assess railroad companies that are (1) 
92.13 	defined as common carriers under section 218.011; (2) classified by federal law or regulation 
92.14 	as Class I Railroads, Class I Rail Carriers, Class II Railroads, or Class II Rail Carriers; and 
92.15 	(3) operating in this state.
92.16 	(b) The assessment must be calculated to allocate state rail safety inspection program 
92.17 	costs proportionally among carriers based on route miles operated in Minnesota at the time 
92.18 	of assessment. The commissioner must include in the assessment calculation all state rail 
92.19 	safety inspection program costs to support up to six rail safety inspector positions, including 
92.20 	but not limited to salary, administration, supervision, travel, equipment, training, and ongoing 
92.21 	state rail inspector duties.
92.22 	(c) The assessments collected under this subdivision must be deposited in a state rail 
92.23 	safety inspection account, which is established in the special revenue fund. The account 
92.24 	consists of funds provided by this subdivision and section 221.0255 and any other money 
92.25 	donated, allotted, transferred, or otherwise provided to the account. Money in the account 
92.26 	is appropriated to the commissioner to administer the state rail safety inspection program
92.27 	and for costs under section 221.0255.

92.28 	Sec. 88. [219.756] YARDMASTER HOURS OF SERVICE.
92.29 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
92.30 	the meanings given.
92.31 	(b) "Railroad" means a common carrier that is classified by federal law or regulation as 
92.32 	a Class I railroad, Class II railroad, or Class III railroad.
93.1 	(c) "Yardmaster" means an employee of a common carrier who is responsible for 
93.2 	supervising and coordinating the control of trains and engines operating within a railyard, 
93.3 	not including a dispatching service employee, signal employee, or train employee as those 
93.4 	terms are defined in United States Code, title 49, section 21101.
93.5 		Subd. 2.Hours of service. (a) A railroad operating in this state must not require or allow 
93.6 	a yardmaster to remain or go on duty:
93.7 	(1) in any month when the employee has spent a total of 276 hours on duty or in any 
93.8 	other mandatory service for the carrier;
93.9 	(2) for a period exceeding 12 consecutive hours; and
93.10 	(3) unless the employee has had at least ten consecutive hours off duty during the prior 
93.11 	24 hours.
93.12 	(b) A railroad operating in this state must not require or allow a yardmaster to remain 
93.13 	or go on duty after the employee has initiated an on-duty period each day for six consecutive 
93.14 	days unless the employee has had 48 consecutive hours off at the employee's home terminal, 
93.15 	during which time the employee is unavailable for any service.

93.16 	Sec. 89. Minnesota Statutes 2022, section 221.0255, subdivision 4, is amended to read:
93.17 		Subd. 4.Motor carrier of railroad employees; requirements. (a) The motor carrier 
93.18 	of railroad employees must implement a policy that provides for annual training and 
93.19 	certification of the operator in:
93.20 	(1) safe operation of the vehicle transporting railroad employees;
93.21 	(2) knowing and understanding relevant laws, rules of the road, and safety policies;
93.22 	(3) handling emergency situations;
93.23 	(4) proper use of seat belts;
93.24 	(5) performance of pretrip and posttrip vehicle inspections, and inspection record keeping; 
93.25 	and
93.26 	(6) proper maintenance of required records.
93.27 	(b) The motor carrier of railroad employees must:
93.28 	(1) confirm that the person is not disqualified under subdivision 6, by performing a 
93.29 	criminal background check of the operator, which must include:
93.30 	(i) a criminal history check of the state criminal records repository; and
94.1 	(ii) if the operator has resided in Minnesota less than five years, a criminal history check 
94.2 	from each state of residence for the previous five years;
94.3 	(2) annually verify the operator's driver's license;
94.4 	(3) document meeting the requirements in this subdivision, which must include 
94.5 	maintaining at the carrier's business location:
94.6 	(i) a driver qualification file on each operator who transports passengers under this 
94.7 	section; and
94.8 	(ii) records of pretrip and posttrip vehicle inspections as required under subdivision 3, 
94.9 	paragraph (a), clause (3);
94.10 	(4) maintain liability insurance in a minimum amount of $5,000,000 regardless of the 
94.11 	seating capacity of the vehicle;
94.12 	(5) maintain uninsured and underinsured coverage in a minimum amount of $1,000,000
94.13 	$2,000,000; and
94.14 	(6) ensure inspection of each vehicle operated under this section as provided under 
94.15 	section 169.781.
94.16 	(c) A driver qualification file under paragraph (b), clause (3), must include:
94.17 	(1) a copy of the operator's most recent medical examiner's certificate;
94.18 	(2) a copy of the operator's current driver's license;
94.19 	(3) documentation of annual license verification;
94.20 	(4) documentation of annual training;
94.21 	(5) documentation of any known violations of motor vehicle or traffic laws; and
94.22 	(6) responses from previous employers, if required by the current employer.
94.23 	(d) The driver qualification file must be retained for one year following the date of 
94.24 	separation of employment of the driver from the carrier. A record of inspection under 
94.25 	paragraph (b), clause (3), item (ii), must be retained for one year following the date of 
94.26 	inspection.
94.27 	(e) If a party contracts with the motor carrier on behalf of the railroad to transport the 
94.28 	railroad employees, then the insurance requirements may be satisfied by either that party 
94.29 	or the motor carrier, so long as the motor carrier is a named insured or additional insured 
94.30 	under any policy.

95.1 	EFFECTIVE DATE. This section is effective August 1, 2024.

95.2 	Sec. 90. Minnesota Statutes 2022, section 221.0255, subdivision 9, is amended to read:
95.3 		Subd. 9.Inspection and investigation authority. (a) Upon receipt of a complaint form 
95.4 	or other information alleging a violation of this section, the commissioner must investigate 
95.5 	the relevant matter. Representatives of the Department of Transportation and the State Patrol 
95.6 	have the authority to enter, at a reasonable time and place, any vehicle or facility of the 
95.7 	carrier for purposes of complaint investigations, random inspections, safety reviews, audits, 
95.8 	or accident investigations.
95.9 	(b) Failure of a railroad or motor carrier of railroad employees to permit a complaint 
95.10 	investigation under this subdivision is grounds for issuance of a civil penalty under 
95.11 	subdivision 10.

95.12 	EFFECTIVE DATE. This section is effective August 1, 2024.

95.13 	Sec. 91. Minnesota Statutes 2022, section 221.0255, is amended by adding a subdivision 
95.14 	to read:
95.15 		Subd. 10.Civil penalty. (a) After completion of an investigation or as provided in 
95.16 	subdivision 9, paragraph (b), the commissioner may issue a civil penalty to a railroad or 
95.17 	motor carrier of railroad employees that violates this section. A civil penalty issued under 
95.18 	this paragraph is in the amount of:
95.19 	(1) not less than $200 but not more than $500 for a first offense;
95.20 	(2) not less than $500 but not more than $1,000 for a second offense; and
95.21 	(3) not less than $1,000 but not more than $5,000 for a third or subsequent offense 
95.22 	committed within three years of the first offense.
95.23 	(b) The civil penalty amounts identified under paragraph (a) are for all violations 
95.24 	identified in a single investigation and are not per violation.
95.25 	(c) The recipient of a civil penalty under this subdivision has 30 days to notify the 
95.26 	commissioner in writing of intent to contest the civil penalty. If within 30 days after receiving 
95.27 	the civil penalty the recipient fails to notify the commissioner of intent to contest the penalty, 
95.28 	the civil penalty is not subject to further review.
95.29 	(d) Civil penalties assessed under this subdivision are subject to chapter 14 and may be 
95.30 	recovered in a civil action.
96.1 	(e) Civil penalties collected under this section must be deposited in the state rail safety 
96.2 	inspection account in the special revenue fund.

96.3 	EFFECTIVE DATE. This section is effective August 1, 2024, and applies to violations 
96.4 	committed on or after that date.

96.5 	Sec. 92. Minnesota Statutes 2022, section 297A.815, subdivision 3, is amended to read:
96.6 		Subd. 3.Motor vehicle lease sales tax revenue. (a) On or before June 30 of each fiscal 
96.7 	year, the commissioner of revenue must estimate the revenues, including interest and 
96.8 	penalties and minus refunds, collected under this section for the current fiscal year.
96.9 	(b) By July 15 of the subsequent fiscal year, the commissioner of management and 
96.10 	budget must transfer the revenues estimated under paragraph (a) from the general fund as 
96.11 	follows:
96.12 	(1) 38 percent to the county state-aid highway fund;
96.13 	(2) 38 percent to the greater Minnesota transit account;
96.14 	(3) 13 percent to the Minnesota state transportation fund local bridge program account 
96.15 	in the special revenue fund, which is hereby created; and
96.16 	(4) 11 percent to the highway user tax distribution fund.
96.17 	(c) Notwithstanding any other law to the contrary, the commissioner of transportation 
96.18 	must allocate the funds transferred under paragraph (b), clause (1), to the counties in the 
96.19 	metropolitan area, as defined in section 473.121, subdivision 4, excluding the counties of 
96.20 	Hennepin and Ramsey, so that each county receives the percentage that its population, as 
96.21 	defined in section 477A.011, subdivision 3, estimated or established by July 15 of the year 
96.22 	prior to the current calendar year, bears to the total population of the counties receiving 
96.23 	funds under this paragraph.
96.24 	(d) The amount transferred Money in the local bridge program account under paragraph 
96.25 	(b), clause (3), must be used is appropriated to the commissioner of transportation for the 
96.26 	local bridge program under section 174.50, subdivisions 6 to 7.
96.27 	(e) The revenues under this subdivision do not include the revenues, including interest 
96.28 	and penalties and minus refunds, generated by the sales tax imposed under section 297A.62, 
96.29 	subdivision 1a, which must be deposited as provided under the Minnesota Constitution, 
96.30 	article XI, section 15.

97.1 	Sec. 93. Minnesota Statutes 2023 Supplement, section 297A.993, subdivision 2a, is 
97.2 	amended to read:
97.3 		Subd. 2a.Uses reporting. By February 15 of each even-numbered year, a metropolitan 
97.4 	county, as defined in section 473.121, subdivision 4, that imposes the taxes under this section 
97.5 	must submit a report to the chairs and ranking minority members of the legislative committees 
97.6 	with jurisdiction over transportation policy and finance. At a minimum, the report must 
97.7 	include:
97.8 	(1) actual transportation sales tax collections by the county over the previous five calendar 
97.9 	years;
97.10 	(2) an estimation of the total sales tax revenue that is estimated to be collected by the 
97.11 	county in the current year and for the next ten calendar years; and
97.12 	(3) for each of the previous five calendar years, the current calendar year, and for the 
97.13 	next ten calendar years:
97.14 	(i) the amount of sales tax revenue expended or proposed to be expended for each of 
97.15 	the following:
97.16 	(A) planning, construction, operation, or maintenance of guideways, as defined in section 
97.17 	473.4485, subdivision 1, paragraph (d);
97.18 	(B) nonguideway transit and active transportation uses;
97.19 	(C) highway uses; and
97.20 	(D) uses not otherwise specified in subitems (A) to (C); and
97.21 	(ii) completed, current, planned, and eligible projects for each category under item (i); 
97.22 	and
97.23 	(iii) an estimated balance of unspent or undesignated county sales tax revenue.

97.24 	Sec. 94. Minnesota Statutes 2022, section 299E.01, subdivision 2, is amended to read:
97.25 		Subd. 2.Responsibilities. (a) The division shall be is responsible and shall must utilize 
97.26 	state employees for security and public information services in state-owned buildings and 
97.27 	state leased-to-own buildings in the Capitol Area, as described in section 15B.02. It shall
97.28 	must provide personnel as are required by the circumstances to insure the orderly conduct 
97.29 	of state business and the convenience of the public. Until July 1, 2026, it must provide 
97.30 	emergency assistance and security escorts at any location within the Capitol Area, as 
97.31 	described in section 15B.02, when requested by a state constitutional officer.
98.1 	(b) As part of the division permanent staff, the director must establish the position of 
98.2 	emergency manager that includes, at a minimum, the following duties:
98.3 	(1) oversight of the consolidation, development, and maintenance of plans and procedures 
98.4 	that provide continuity of security operations;
98.5 	(2) the development and implementation of tenant training that addresses threats and 
98.6 	emergency procedures; and
98.7 	(3) the development and implementation of threat and emergency exercises.
98.8 	(c) The director must provide a minimum of one state trooper assigned to the Capitol 
98.9 	complex at all times.
98.10 	(d) The director, in consultation with the advisory committee under section 299E.04, 
98.11 	shall, at least annually, hold a meeting or meetings to discuss, among other issues, Capitol 
98.12 	complex security, emergency planning, public safety, and public access to the Capitol 
98.13 	complex. The meetings must include, at a minimum:
98.14 	(1) Capitol complex tenants and state employees;
98.15 	(2) nongovernmental entities, such as lobbyists, vendors, and the media; and
98.16 	(3) the public and public advocacy groups.

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

98.18 	Sec. 95. [325F.661] SALE OF ELECTRIC-ASSISTED BICYCLES AND OTHER 
98.19 	ELECTRIC CYCLES.
98.20 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
98.21 	the meanings given.
98.22 	(b) "Class 1 electric-assisted bicycle," "class 2 electric-assisted bicycle," and "class 3 
98.23 	electric-assisted bicycle" have the meanings given in section 169.011, subdivisions 15a, 
98.24 	15b, and 15c.
98.25 	(c) "Electric-assisted bicycle" has the meaning given in section 169.011, subdivision 
98.26 	27.
98.27 	(d) "Motorcycle" has the meaning given in section 169.011, subdivision 44.
98.28 	(e) "Motorized bicycle" has the meaning given in section 169.011, subdivision 45.
98.29 	(f) "Multiple mode electric-assisted bicycle" has the meaning given in section 169.011, 
98.30 	subdivision 45a.
99.1 		Subd. 2.Electric-assisted bicycle. Before a purchase is completed, a seller of an 
99.2 	electric-assisted bicycle must disclose to a consumer in written form:
99.3 	(1) the maximum motor power of the electric-assisted bicycle;
99.4 	(2) the maximum speed of the electric-assisted bicycle, as evaluated using a test method 
99.5 	matching the criteria specified in Code of Federal Regulations, title 16, section 1512.2(a)(2), 
99.6 	or successor requirements; and
99.7 	(3) whether the electric-assisted bicycle is a class 1, class 2, class 3, or multiple mode 
99.8 	electric-assisted bicycle.
99.9 		Subd. 3.Other electric cycles. (a) A seller of a motorized bicycle or motorcycle equipped 
99.10 	with an electric motor for propulsion may not sell the vehicle or offer the vehicle for sale 
99.11 	if it is labeled as a class 1, class 2, class 3, or multiple mode electric-assisted bicycle.
99.12 	(b) Before a purchase is completed and in any advertising materials, a seller of a 
99.13 	motorized bicycle or motorcycle equipped with an electric motor for propulsion who 
99.14 	describes the vehicle as an "electric bicycle," "electric bike," "e-bike," or other similar term 
99.15 	must disclose to a consumer:
99.16 	(1) the name or classification of the vehicle under state law or the most likely 
99.17 	classification following an intended or anticipated vehicle modification as defined in section 
99.18 	169.011, subdivision 27, paragraph (c); and
99.19 	(2) the following statement:
99.20 	"This vehicle is not an "electric-assisted bicycle" as defined in Minnesota law. It is 
99.21 	instead a type of motor vehicle and subject to applicable motor vehicle laws if used on 
99.22 	public roads or public lands. Your insurance policies might not provide coverage for crashes 
99.23 	involving the use of this vehicle. To determine coverage, you should contact your insurance 
99.24 	company or agent."
99.25 	(c) Advertising materials under paragraph (b) include but are not limited to a website 
99.26 	or social media post that identifies or promotes the vehicle.
99.27 	(d) The disclosure under paragraph (b) must be (1) written, and (2) provided clearly and 
99.28 	conspicuously and in a manner designed to attract the attention of a consumer.
99.29 		Subd. 4.Unlawful practices. It is an unlawful practice under section 325F.69 to advertise, 
99.30 	offer for sale, or sell a motorized bicycle or motorcycle equipped with an electric motor for 
99.31 	propulsion:
99.32 	(1) as an electric-assisted bicycle; or
100.1 	(2) using the words "electric bicycle," "electric bike," "e-bike," or other similar term 
100.2 	without providing the disclosure required under subdivision 3.

100.3 	Sec. 96. Minnesota Statutes 2023 Supplement, section 357.021, subdivision 6, is amended 
100.4 	to read:
100.5 		Subd. 6.Surcharges on criminal and traffic offenders. (a) Except as provided in this 
100.6 	subdivision, the court shall impose and the court administrator shall collect a $75 surcharge 
100.7 	on every person convicted of any felony, gross misdemeanor, misdemeanor, or petty 
100.8 	misdemeanor offense, other than a violation of: (1) a law or ordinance relating to vehicle 
100.9 	parking, for which there is a $12 surcharge; and (2) section 609.855, subdivision 1, 3, or 
100.10 	3a, for which there is a $25 surcharge. When a defendant is convicted of more than one 
100.11 	offense in a case, the surcharge shall be imposed only once in that case. In the Second 
100.12 	Judicial District, the court shall impose, and the court administrator shall collect, an additional 
100.13 	$1 surcharge on every person convicted of any felony, gross misdemeanor, misdemeanor, 
100.14 	or petty misdemeanor offense, including a violation of a law or ordinance relating to vehicle 
100.15 	parking, if the Ramsey County Board of Commissioners authorizes the $1 surcharge. The 
100.16 	surcharge shall be imposed whether or not the person is sentenced to imprisonment or the 
100.17 	sentence is stayed. The surcharge shall not be imposed when a person is convicted of a petty 
100.18 	misdemeanor for which no fine is imposed.
100.19 	(b) The court may reduce the amount or waive payment of the surcharge required under 
100.20 	this subdivision on a showing of indigency or undue hardship upon the convicted person 
100.21 	or the convicted person's immediate family. Additionally, the court may permit the defendant 
100.22 	to perform community work service in lieu of a surcharge.
100.23 	(c) The court administrator or other entity collecting a surcharge shall forward it to the 
100.24 	commissioner of management and budget.
100.25 	(d) If the convicted person is sentenced to imprisonment and has not paid the surcharge 
100.26 	before the term of imprisonment begins, the chief executive officer of the correctional 
100.27 	facility in which the convicted person is incarcerated shall collect the surcharge from any 
100.28 	earnings the inmate accrues from work performed in the facility or while on conditional 
100.29 	release. The chief executive officer shall forward the amount collected to the court 
100.30 	administrator or other entity collecting the surcharge imposed by the court.
100.31 	(e) A person who enters a diversion program, continuance without prosecution, 
100.32 	continuance for dismissal, or stay of adjudication for a violation of chapter 169 must pay 
100.33 	the surcharge described in this subdivision. A surcharge imposed under this paragraph shall 
100.34 	be imposed only once per case.
101.1 	(f) The surcharge does not apply to:
101.2 	(1) citations issued pursuant to section 169.06, subdivision 10;
101.3 	(2) citations issued pursuant to section 169.14, subdivision 13;
101.4 	(3) administrative citations issued pursuant to section 169.999.; or
101.5 	(g) The surcharge does not apply to (4) administrative citations issued by transit rider 
101.6 	investment program personnel pursuant to section 473.4075.

101.7 	EFFECTIVE DATE. This section is effective August 1, 2025.

101.8 	Sec. 97. [430.001] DEFINITIONS.
101.9 		Subdivision 1.Definitions. For the purposes of this chapter, the following terms have 
101.10 	the meanings given.
101.11 		Subd. 2.City. "City" means a home rule charter or statutory city.
101.12 		Subd. 3.City council. "City council" means the governing body of a city.
101.13 		Subd. 4.Residence district. "Residence district" means the territory contiguous to and 
101.14 	including a highway not comprising a business district when the property on such highway 
101.15 	for a distance of 300 feet or more is predominantly improved with (1) residences, or (2) 
101.16 	residences and buildings in use for business.
101.17 		Subd. 5.System of streets, parks, and parkways. "System of streets, parks, and 
101.18 	parkways" means a body of contiguous land designated to be used in part for streets and in 
101.19 	part for parks or parkways.

101.20 	Sec. 98. Minnesota Statutes 2022, section 430.01, subdivision 2, is amended to read:
101.21 		Subd. 2.Parking lots; pedestrian malls and uses. The council of a city of the first 
101.22 	class may by resolution designate land to be acquired, improved, and operated for motor 
101.23 	vehicle parking lots. By resolution, the council may designate lands to be acquired, improved, 
101.24 	and operated for pedestrian malls. By ordinance adopted under section 430.011, the council 
101.25 	may designate streets in central business districts any property within a city right-of-way
101.26 	to be improved primarily for pedestrian uses.

101.27 	Sec. 99. Minnesota Statutes 2022, section 430.011, subdivision 1, is amended to read:
101.28 		Subdivision 1.Legislative findings. The legislature finds that: (1) increases in population 
101.29 	and automobile usage have created traffic congestion in central business districts of cities 
101.30 	of the first class cities; (2) those conditions endanger pedestrians and impede the movement 
102.1 	of police and fire equipment, ambulances, and other emergency vehicles; (3) certain streets 
102.2 	in those central business districts cities have been improved to their maximum width for 
102.3 	sidewalk and roadway purposes and cannot be further widened without taking valuable 
102.4 	buildings and improvements, substantially impairing the primary function of those city 
102.5 	streets as pedestrian facilities, and impairing the cities' sources of tax revenue; and (4) 
102.6 	limitation on the use of those streets by private vehicles may be found by the council of any 
102.7 	city of the first class to be in the interest of the city and state, to be of benefit to adjoining 
102.8 	properties, and to be essential to the effective use of the streets for street purposes.

102.9 	Sec. 100. Minnesota Statutes 2022, section 430.011, subdivision 2, is amended to read:
102.10 		Subd. 2.Statement of policy. It is the state's policy to permit the city council of any 
102.11 	city of the first class to protect the public welfare and the interests of the public in the safe 
102.12 	and effective movement of persons and to preserve and enhance the function and appearance 
102.13 	of the central business districts of cities of the first class cities by adopting pedestrian mall 
102.14 	ordinances under this section.

102.15 	Sec. 101. Minnesota Statutes 2022, section 430.011, subdivision 3, is amended to read:
102.16 		Subd. 3.Pedestrian mall ordinances authorized. (a) A pedestrian mall ordinance may 
102.17 	be adopted if the city council finds that:
102.18 	(1) a street or a part of a street (i) is not a part of any state trunk highway, (ii) is located 
102.19 	primarily in a central business district within a city right-of-way, and (iii) is improved to 
102.20 	its maximum width for roadway and sidewalk purposes, and (iv) is congested during all or 
102.21 	a substantial part of normal business hours except for a city of the first class, is not part of 
102.22 	a residence district;
102.23 	(2) the movement of police and fire equipment and other emergency vehicles would not 
102.24 	be impeded;
102.25 	(2) (3) reasonably convenient alternate routes exist for private vehicles to other parts of 
102.26 	the city and state;
102.27 	(3) (4) continued unlimited use of the street or part of the street by private vehicles may 
102.28 	endanger pedestrians;
102.29 	(4) (5) abutting properties can reasonably and adequately receive and deliver merchandise 
102.30 	and materials from other streets and alleys or through arrangements for limited use of the 
102.31 	streets by carriers of merchandise and materials; and
103.1 	(5) (6) it would be in the best interests of the city and the public and of benefit to adjacent 
103.2 	properties to use the street primarily for pedestrian purposes and pedestrian use is the highest 
103.3 	and best use of the street or part of it.
103.4 	(b) In addition to meeting the criteria under paragraph (a), a pedestrian mall ordinance 
103.5 	may be adopted relating to property that is immediately adjacent to at least one side of an 
103.6 	intersection with a road that is under the jurisdiction of another road authority only if the 
103.7 	city has consulted with the other road authority, which must include consideration of changes 
103.8 	to traffic flow. If the other road authority is opposed to the location of the proposed pedestrian 
103.9 	mall, the city must make publicly available a detailed written response to the road authority 
103.10 	before adopting the ordinance. A pedestrian mall ordinance may be adopted relating to 
103.11 	property that borders another city only if the city developing the ordinance has received the 
103.12 	approval of the bordering city.
103.13 	(c) As relevant, the city must collaborate with the state and local units of government 
103.14 	in the pedestrian mall planning process.

103.15 	Sec. 102. Minnesota Statutes 2022, section 430.023, is amended to read:
103.16 	430.023 WHEN CLERK TO MAIL NOTICE IN CONDEMNATION 
103.17 	PROCEEDING.
103.18 	If a city of the first class is authorized in its charter to condemn property for public use 
103.19 	and to appoint commissioners to assess damages or benefits on condemned property and is 
103.20 	required by its charter to give notice of the filing of the commissioners' report, the city clerk 
103.21 	shall give the required notice. Notice must be given by mailing it to the person whose name 
103.22 	appears on the records of the auditor of the county in which the city is located as the person 
103.23 	who last paid the taxes on the property proposed to be taken, within 48 hours after the filing 
103.24 	of the commissioners' report.

103.25 	Sec. 103. Minnesota Statutes 2022, section 430.031, subdivision 1, is amended to read:
103.26 		Subdivision 1.Limitation of actions. No action may be commenced or maintained, and 
103.27 	no defense interposed, questioning the validity, regularity, or legality of all or part of a 
103.28 	pedestrian mall ordinance, or an amendment, to it adopted by a city of the first class under 
103.29 	section 430.011, subdivision 3 or 13 except by an appeal to the district court of the county 
103.30 	in which the city is located within 20 days after the final adoption and publication of the 
103.31 	ordinance or amendment.

104.1 	Sec. 104. Minnesota Statutes 2022, section 430.13, is amended to read:
104.2 	430.13 SCOPE OF CHAPTER; DEFINITION; BONDED DEBT.
104.3 	This chapter applies to cities of the first class.
104.4 	The term "city council" means the governing body of a city.
104.5 	Certificates or bonds that may be issued to finance an improvement under this chapter 
104.6 	are part of the bonded debt of the city. In calculating the net indebtedness of the city due to 
104.7 	the issue of certificates or bonds, there may be deducted from the gross debt of the city the 
104.8 	amount of certificates or bonds that are payable wholly or partly from collections of special 
104.9 	assessments levied on property benefited by the improvements, including general obligations 
104.10 	of the issuing city, if the city is entitled to reimbursement, in whole or in part, from the 
104.11 	proceeds of special assessments levied upon property especially benefited by the 
104.12 	improvements.

104.13 	Sec. 105. Minnesota Statutes 2022, section 473.13, is amended by adding a subdivision 
104.14 	to read:
104.15 		Subd. 6.Transportation financial review. (a) Annually by January 15, the council 
104.16 	must submit a financial review that details revenue and expenditures for the transportation 
104.17 	components under the council's budget, as specified in paragraph (c). A financial review 
104.18 	submitted under this paragraph must provide the information using state fiscal years.
104.19 	(b) Annually by the earlier of the accounting close of a budget year or August 15, the 
104.20 	council must submit a financial review update that provides the following for the most 
104.21 	recent completed budget year: actual revenues; expenditures; transfers; reserves; balances; 
104.22 	and a comparison between the budgeted and actual amounts. A financial review update 
104.23 	under this paragraph must include the information specified in paragraph (d).
104.24 	(c) At a minimum, a financial review must identify:
104.25 	(1) the actual revenues, expenditures, transfers, reserves, and balances in each of the 
104.26 	previous four years;
104.27 	(2) budgeted and forecasted revenues, expenditures, transfers, reserves, and balances in 
104.28 	the current year and each year within the state forecast period;
104.29 	(3) for the most recent completed year, a comparison between the budgeted and actual 
104.30 	amounts under clause (1); and
104.31 	(4) for the most recent completed year, fund balances for each replacement service 
104.32 	provider under section 473.388.
105.1 	(d) The information under paragraph (c), clauses (1) to (3), must include:
105.2 	(1) a breakdown by each transportation funding source identified by the council, including 
105.3 	but not limited to legislative appropriations; federal funds; fare collections; property tax; 
105.4 	and sales tax, including sales tax used for active transportation under section 473.4465, 
105.5 	subdivision 2, paragraph (a), clause (1);
105.6 	(2) a breakdown by each transportation operating budget category established by the 
105.7 	council, including but not limited to bus, light rail transit, commuter rail, planning, special 
105.8 	transportation service under section 473.386, and assistance to replacement service providers 
105.9 	under section 473.388; and
105.10 	(3) data for operations, capital maintenance, and transit capital.
105.11 	(e) A financial review under paragraph (a) or (b) must provide information or a 
105.12 	methodology sufficient to establish a conversion between state fiscal years and budget years, 
105.13 	summarize reserve policies, identify the methodology for cost allocation, and describe 
105.14 	revenue assumptions and variables affecting the assumptions.
105.15 	(f) The council must submit each financial review to the chairs and ranking minority 
105.16 	members of the legislative committees and divisions with jurisdiction over transportation 
105.17 	policy and finance and to the commissioner of management and budget.

105.18 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
105.19 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
105.20 	Scott, and Washington.

105.21 	Sec. 106. Minnesota Statutes 2022, section 473.3927, is amended to read:
105.22 	473.3927 ZERO-EMISSION AND ELECTRIC TRANSIT VEHICLES.
105.23 		Subdivision 1.Transition plan required. (a) The council must develop and maintain 
105.24 	a zero-emission and electric transit vehicle transition plan.
105.25 	(b) The council must complete the initial revise the plan by February 15, 2022 2025, 
105.26 	and revise the plan at least once every five three years following each prior revision.
105.27 		Subd. 1a.Definitions. (a) For purposes of this section, the following terms have the 
105.28 	meanings given.
105.29 	(b) "Greenhouse gas emissions" includes those emissions described in section 216H.01, 
105.30 	subdivision 2.
106.1 	(c) "Qualified transit bus" means a motor vehicle that meets the requirements under 
106.2 	paragraph (d), clauses (1) and (2).
106.3 	(d) "Zero-emission transit bus" means a motor vehicle that:
106.4 	(1) is designed for public transit service;
106.5 	(2) has a capacity of more than 15 passengers, including the driver; and
106.6 	(3) produces no exhaust-based greenhouse gas emissions from the onboard source of 
106.7 	motive power of the vehicle under all operating conditions.
106.8 		Subd. 2.Plan development. At a minimum, the plan must:
106.9 	(1) establish implementation policies and, guidance, and recommendations to implement 
106.10 	the transition to a transit service fleet of exclusively zero-emission and electric transit 
106.11 	vehicles, including for recipients of financial assistance under section 473.388;
106.12 	(2) establish a bus procurement transition strategy so that beginning on January 1, 2035, 
106.13 	any qualified transit bus purchased for regular route transit service or special transportation 
106.14 	service under section 473.386 by the council is a zero-emission transit bus;
106.15 	(3) consider methods for transit providers to maximize greenhouse gas reduction in 
106.16 	addition to zero-emission transit bus procurement, including but not limited to service 
106.17 	expansion, reliability improvements, and other transit service improvements;
106.18 	(4) analyze greenhouse gas emission reduction from transit improvements identified 
106.19 	under clause (3) in comparison to the zero-emission transit bus procurement strategy under 
106.20 	clause (2);
106.21 	(5) set transition milestones or performance measures, or both, which may include vehicle 
106.22 	procurement goals over the transition period in conjunction with the strategy under clause 
106.23 	(2);
106.24 	(3) (6) identify barriers, constraints, and risks, and determine objectives and strategies 
106.25 	to address the issues identified;
106.26 	(4) (7) consider findings and best practices from other transit agencies;
106.27 	(5) (8) analyze zero-emission and electric transit vehicle technology impacts, including 
106.28 	cold weather operation and emerging technologies;
106.29 	(9) prioritize deployment of zero-emission transit buses based on the extent to which 
106.30 	service is provided to environmental justice areas, as defined in section 116.065, subdivision 
106.31 	1;
107.1 	(6) (10) consider opportunities to prioritize the deployment of zero-emissions vehicles 
107.2 	in areas with poor air quality;
107.3 	(11) consider opportunities to prioritize deployment of zero-emission transit buses along 
107.4 	arterial and highway bus rapid transit routes, including methods to maximize cost 
107.5 	effectiveness with bus rapid transit construction projects;
107.6 	(7) (12) provide detailed estimates of implementation costs to implement the plan and 
107.7 	achieve the transition under clause (2), which, to the extent feasible, must include a forecast 
107.8 	of annual expenditures, identification of potential sources of funding, and a summary of 
107.9 	any anticipated or planned activity to seek additional funds; and
107.10 	(8) (13) examine capacity, constraints, and potential investments in the electric 
107.11 	transmission and distribution grid, in consultation with appropriate public utilities;
107.12 	(14) identify methods to coordinate necessary facility upgrades in a manner that 
107.13 	maximizes cost effectiveness and overall system reliability;
107.14 	(15) examine workforce impacts under the transition plan, including but not limited to 
107.15 	changes in staffing complement; personnel skill gaps and needs; and employee training, 
107.16 	retraining, or role transitions; and
107.17 	(16) summarize updates to the plan from the most recent version.
107.18 		Subd. 3.Copy to legislature. Upon completion or revision of the plan, the council must 
107.19 	provide a copy to the chairs, ranking minority members, and staff of the legislative 
107.20 	committees with jurisdiction over transportation policy and finance.

107.21 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
107.22 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
107.23 	Scott, and Washington.

107.24 	Sec. 107. Minnesota Statutes 2023 Supplement, section 473.3999, is amended to read:
107.25 	473.3999 LIGHT RAIL TRANSIT CONSTRUCTION; COUNCIL AUTHORITY; 
107.26 	STAFF ASSISTANCE; PROJECT MANAGER QUALIFICATIONS.
107.27 		Subdivision 1.Powers. (a) The Metropolitan council may exercise the powers granted 
107.28 	in this chapter and in other applicable law, as necessary, to plan, design, acquire, construct, 
107.29 	and equip light rail transit facilities in the metropolitan area as defined in section 473.121, 
107.30 	subdivision 2.
107.31 		Subd. 2.Staff and project assistance required; Department of Transportation. (b)
107.32 	(a) Notwithstanding any cooperative agreement between the commissioner of transportation 
108.1 	and the Metropolitan council in section 473.3994, subdivision 1a, if the council is the 
108.2 	responsible authority, the commissioner of transportation must provide staff and project 
108.3 	assistance to the council for review and oversight of the project's development. To the extent 
108.4 	practicable, The Metropolitan council must utilize the Department of Transportation staff 
108.5 	and project assistance for:
108.6 	(1) the appropriate delivery method selection for the design, planning, acquisition, 
108.7 	construction, and equipping of light rail transit projects;
108.8 	(2) risk assessment analysis and cost analysis in the planning, designing, and construction 
108.9 	of a light rail transit facility or a new light rail transit project, including but not limited to:
108.10 	(i) a critical path schedule for the planning and design phases of a project developed 
108.11 	jointly by the council and the commissioner of transportation;
108.12 	(ii) peer reviews or value engineering reviews at various milestones established in the 
108.13 	critical path schedule created under item (i); and
108.14 	(iii) council participation in cost estimate reviews by third-party independent cost 
108.15 	estimators in conformance with Federal Transit Administration regulations and guidance;
108.16 	(3) contractor and subcontractor schedule analysis and contractual requirements, including 
108.17 	but not limited to:
108.18 	(i) development and review of requests for proposals and bid documents prior to 
108.19 	advertisement and solicitation;
108.20 	(ii) review of bids submitted prior to the award of bids;
108.21 	(iii) review of draft contractual language prior to the execution of project contracts;
108.22 	(iv) review of change orders for major cost items exceeding $500,000 and schedule 
108.23 	delays of more than 30 calendar days prior to the execution of a change order; and
108.24 	(v) participation in any dispute resolution process that may arise to address competing 
108.25 	claims or disputes between a contractor and the council;
108.26 	(4) light rail transit project cost management and budget analysis for the planning, 
108.27 	designing, and construction of a light rail transit facility or new light rail transit project, 
108.28 	including but not limited to:
108.29 	(i) recommendations to address or manage cost overruns or discrepancies, funding 
108.30 	sources, contingency funding sources and availability, and the management of state or 
108.31 	county financial resources;
109.1 	(ii) recommendations on appropriate contractual enforcement mechanisms and penalties 
109.2 	for any council agreement with a contractor for a light rail transit project; and
109.3 	(iii) the development of future cost estimates and communication of projected cost 
109.4 	increases for a light rail transit project; and
109.5 	(5) any other technical areas of expertise that the Department of Transportation may 
109.6 	offer.
109.7 	(c)(b) The council must provide the commissioner of transportation all relevant 
109.8 	information required by this section.
109.9 	(c) Staff from the Department of Transportation providing project assistance to the 
109.10 	council must report to the commissioner of transportation. Staff assistance from the 
109.11 	Department of Transportation must include at least one licensed professional engineer.
109.12 	(d) If the commissioner of transportation provides the council with staff and project 
109.13 	assistance for the development of a light rail transit project as provided under this section, 
109.14 	the commissioner must submit and detail all recommendations made to the council to the 
109.15 	chairs and ranking minority members of the legislative committees with jurisdiction over 
109.16 	transportation policy and finance within 30 days of submitting its recommendations to the 
109.17 	council.
109.18 	(e) The council must give strong consideration to utilizing input or recommendations 
109.19 	developed by the commissioner of transportation. If the council decides against utilizing 
109.20 	input or recommendations from the department, the council must reconcile significant 
109.21 	deviations to the extent practicable and that portion of the project cannot move forward 
109.22 	from the critical path schedule's milestone until the recommendation is reconciled. If the 
109.23 	council has sufficient reasoning to justify not utilizing input or recommendations from the 
109.24 	department, the council must, within 30 business days, provide written notice and 
109.25 	documentation of the decision to the department and the chairs and ranking minority members 
109.26 	of the legislative committees with jurisdiction over transportation policy and finance. The 
109.27 	notice and documentation must provide the reasons why the council is not utilizing the input 
109.28 	or recommendations provided by the department.
109.29 		Subd. 3.Project costs. The project budget is responsible for costs incurred by the 
109.30 	commissioner of transportation for duties required in this section. The council must only 
109.31 	use direct appropriations in law or federal sources to pay its portion of light rail transit 
109.32 	capital construction costs.
110.1 		Subd. 4.Project manager; qualifications. If the Metropolitan Council is the responsible 
110.2 	authority, the council must select a qualified project manager and lead project engineer with 
110.3 	at least ten years' transportation industry experience to lead the planning, design, acquisition, 
110.4 	construction, or equipping of a new light rail transit project.

110.5 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
110.6 	final enactment. Subdivision 2 does not apply to the Southwest light rail transit (Green Line 
110.7 	Extension) project. This section applies in the counties of Anoka, Carver, Dakota, Hennepin, 
110.8 	Ramsey, Scott, and Washington.

110.9 	Sec. 108. Minnesota Statutes 2023 Supplement, section 473.4051, is amended by adding 
110.10 	a subdivision to read:
110.11 		Subd. 4.Bus rapid transit project scope; infrastructure. (a) The council must design, 
110.12 	fully scope, and construct each arterial bus rapid transit project with the following elements:
110.13 	(1) sidewalk curb ramps and pedestrian signals that meet current Americans with 
110.14 	Disabilities Act standards as of the time of engineering completion at the four intersection 
110.15 	quadrants of an intersection adjacent to a bus rapid transit station;
110.16 	(2) transit pavement markings, as applicable; and
110.17 	(3) traffic signal transit priority modifications, where feasible and reasonable, to improve 
110.18 	speed and efficiency of service.
110.19 	(b) The requirements under paragraph (a), clause (1), include intersection infrastructure 
110.20 	that serves the bus rapid transit station from the opposite side of a street. The requirements 
110.21 	under paragraph (a), clause (1), exclude locations that are:
110.22 	(1) compliant with current Americans with Disabilities Act standards as of the time of 
110.23 	engineering completion for the project; or
110.24 	(2) otherwise included in a programmed and colocated roadway construction project.
110.25 	(c) For bus rapid transit project costs resulting from the requirements under paragraph 
110.26 	(a), clause (1), the council must pay 50 percent of the costs and the unit of government with 
110.27 	jurisdiction over the road must pay 50 percent of the costs. The council must pay the project 
110.28 	costs resulting from the requirements under paragraph (a), clauses (2) and (3).

110.29 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
110.30 	final enactment for projects that first commence construction on or after that date. This 
110.31 	section applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and 
110.32 	Washington.

111.1 	Sec. 109. Minnesota Statutes 2023 Supplement, section 473.412, subdivision 2, is amended 
111.2 	to read:
111.3 		Subd. 2.Standards established. (a) By October 1, 2023, The Metropolitan Council 
111.4 	must adopt standards on cleanliness and repair of transit vehicles and stations. To the extent 
111.5 	practicable, the standards must address:
111.6 	(1) cleaning requirements for transit stations and vehicles operated by the council;
111.7 	(2) a strategy for discovering and removing vandalism, graffiti, or other defacement to 
111.8 	transit stations or vehicles operated by the council;
111.9 	(3) a proposal for the timely repair of damage to transit stations and transit vehicle 
111.10 	fixtures, structures, or other property used for the purpose of supporting public transit; and
111.11 	(4) any other cleanliness standards necessary to provide a quality ridership experience 
111.12 	for all transit users.
111.13 	(b) By February 1, 2024, The Metropolitan Council must provide information on the 
111.14 	council's website on how the council solicits public feedback on cleanliness and rider 
111.15 	experience at transit stations and on transit vehicles. The council must post conspicuous 
111.16 	notice of the public feedback options at each light rail transit station and bus rapid transit 
111.17 	station operated by the council.

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

111.19 	Sec. 110. Minnesota Statutes 2023 Supplement, section 473.412, subdivision 3, is amended 
111.20 	to read:
111.21 		Subd. 3.Report required; cleaning standards and expenditures. (a) By October 1, 
111.22 	2023, and every two years October 1, 2024, and every year thereafter, the Metropolitan 
111.23 	Council must report to the chairs and ranking minority members of the legislative committees 
111.24 	with jurisdiction over transit policy and finance on transit cleanliness and the ridership 
111.25 	experience.
111.26 	(b) The first report due under paragraph (a) must provide information on the council's 
111.27 	adopted cleanliness standards required under subdivision 2, including whether the council 
111.28 	adopted new cleanliness standards or revisions to current cleanliness standards. The first 
111.29 	report must also provide information on how the council developed the cleanliness standards, 
111.30 	the stakeholders it consulted in drafting the cleanliness standards, and the financial resources 
111.31 	needed to implement the cleaning and repair standards. The first report must also identify 
111.32 	the council's proposal for soliciting public feedback on cleanliness and rider experience at 
112.1 	transit stations and on transit vehicles operated by the council. A report prepared under this 
112.2 	subdivision must include information gathered from the required public feedback on 
112.3 	cleanliness and rider experience required in subdivision 2, paragraph (b). The council must 
112.4 	consider and recommend revisions to cleanliness standards based on the collection of public 
112.5 	feedback and must summarize feedback received by the council in the report.
112.6 	(c) For reports submitted on October 1, 2025, and every two years thereafter, the report
112.7 	A report submitted under this subdivision must include:
112.8 	(1) the total expenditures for cleaning and repairing transit stations and transit vehicles;
112.9 	(2) a report on the frequency, type, and location of repairs;
112.10 	(3) a report on whether specific transit stations needed a higher proportion of cleaning 
112.11 	or repairs and detail the council's strategy to resolve identified and persistent concerns at 
112.12 	those locations;
112.13 	(4) a report on recommendations to address workforce challenges for maintaining the
112.14 	the implementation and maintenance of cleanliness and repair standards adopted by the 
112.15 	council, including whether the council maintained agreements with third-party services for 
112.16 	cleaning and repair;
112.17 	(5) whether the council has adopted preventative measures against vandalism or graffiti; 
112.18 	and
112.19 	(6) any recommendations for additions to the transit rider code of conduct adopted by 
112.20 	the council under section 473.4065 or the transit rider investment program under section 
112.21 	473.4075.
112.22 	(d) The council must collect and summarize the public comments it receives and 
112.23 	incorporate those comments into the report required under paragraph (c).

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

112.25 	Sec. 111. Minnesota Statutes 2023 Supplement, section 473.4465, subdivision 4, is amended 
112.26 	to read:
112.27 		Subd. 4.Use of funds; metropolitan counties; reporting. (a) A metropolitan county 
112.28 	must use revenue from the regional transportation sales and use tax under section 297A.9915
112.29 	in conformance with the requirements under section 174.49, subdivision 6.
112.30 	(b) By February 15 of each even-numbered year, a metropolitan county must submit a 
112.31 	report to the chairs and ranking minority members of the legislative committees with 
112.32 	jurisdiction over transportation policy and finance on the use of funds received under section 
113.1 	297A.9915. This report must be submitted in conjunction with the report required under 
113.2 	section 297A.993, subdivision 2a. At a minimum, the report must include:
113.3 	(1) actual sales tax collections allocated to the county over the previous five calendar 
113.4 	years;
113.5 	(2) an estimation of the total sales tax revenue that is estimated to be allocated to the 
113.6 	county in the current year and for the next ten calendar years; and
113.7 	(3) for each of the previous five calendar years, the current calendar year, and for the 
113.8 	next ten calendar years:
113.9 	(i) the amount of sales tax revenue expended or proposed to be expended for each of 
113.10 	the allowable uses under section 174.49, subdivision 6;
113.11 	(ii) completed, current, planned, and eligible projects or programs for each category 
113.12 	under item (i); and
113.13 	(iii) an estimated balance of unspent or undesignated regional transportation sales and 
113.14 	use tax revenue.

113.15 	Sec. 112. Minnesota Statutes 2022, section 473.452, is amended to read:
113.16 	473.452 TRANSIT OPERATING RESERVES; REPORT.
113.17 	(a) By February 1 December 15 each year, each replacement service provider under 
113.18 	section 473.388 must report to the council its projected total operating expenses for the 
113.19 	current calendar state fiscal year and its projected operating reserve fund balance as of the 
113.20 	previous December July 31.
113.21 	(b) By March 1 January 15 each year, the council must submit a report to the chairs and 
113.22 	ranking minority members of the legislative committees with jurisdiction over transportation 
113.23 	policy and finance. The report must include:
113.24 	(1) the information from each provider received under paragraph (a); and
113.25 	(2) the council's projected total operating expenses for the current calendar state fiscal
113.26 	year and its projected operating reserve fund balance as of the previous December July 31.

113.27 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
113.28 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
113.29 	Scott, and Washington.

114.1 	Sec. 113. Minnesota Statutes 2022, section 480.15, is amended by adding a subdivision 
114.2 	to read:
114.3 		Subd. 10d.Uniform collections policies and procedures; limitations. The uniform 
114.4 	collections policies and procedures under subdivision 10c must not allow collections of 
114.5 	court debt, as defined in subdivision 10c, or referral of court debt to the Department of 
114.6 	Revenue, that only arises from a single violation under section 169.06, subdivision 10, or 
114.7 	169.14, subdivision 13.

114.8 	EFFECTIVE DATE. This section is effective August 1, 2025, and expires August 1, 
114.9 	2029.

114.10 	Sec. 114. Laws 2023, chapter 68, article 4, section 108, is amended to read:
114.11 	Sec. 108. ADDITIONAL DEPUTY REGISTRAR OF MOTOR VEHICLES FOR 
114.12 	RAMSEY COUNTY.
 114.13 	Notwithstanding Minnesota Statutes, section sections168.33 and 171.061, and rules 
114.14 	adopted by the commissioner of public safety limiting sites for the office of deputy registrar 
114.15 	or driver's license agent based on either the distance to an existing deputy registrar or driver's 
114.16 	license agent office or the annual volume of transactions processed by any deputy registrar 
114.17 	or driver's license agent within Ramsey County before or after the proposed appointment, 
114.18 	the commissioner of public safety must appoint a new private deputy registrar of motor 
114.19 	vehicles and driver's license agent to operate a new full-service office of deputy registrar, 
114.20 	with full authority to function as a registration and motor vehicle tax collection bureau or 
114.21 	driver's license agent bureau, at or in the vicinity of the Hmong Village shopping center at 
114.22 	1001 Johnson Parkway in the city of St. Paul. The addition of a driver's license agent 
114.23 	establishes the location as a full-service office with full authority to function as a registration 
114.24 	and motor vehicle tax collection and driver's license bureau. All other provisions regarding 
114.25 	the appointment and operation of a deputy registrar of motor vehicles and driver's license 
114.26 	agent under Minnesota Statutes, section sections168.33 and 171.061, and Minnesota Rules, 
114.27 	chapter chapters 7404 and 7406, apply to the office.

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

115.1 	Sec. 115. Laws 2023, chapter 68, article 4, section 126, is amended to read:
115.2 	Sec. 126. LEGISLATIVE REPORT; SPEED SAFETY CAMERAS.
 115.3 	(a) By November 1, 2024 January 15, 2025, the commissioner of public safety must 
115.4 	submit a report to the chairs and ranking minority members of the legislative committees 
115.5 	with jurisdiction over transportation policy and finance that identifies a process and associated 
115.6 	policies for issuance of a mailed citation to the owner or lessee of a motor vehicle that a 
115.7 	speed safety camera system detects is operated in violation of a speed limit.
115.8 	(b) The commissioner must convene a task force to assist in the development of the 
115.9 	report. The task force must include the Advisory Council on Traffic Safety under Minnesota 
115.10 	Statutes, section 4.076, a representative from the Minnesota County Attorneys Association, 
115.11 	a representative from the judicial branch, and a person with expertise in data privacy and 
115.12 	may include other members as the commissioner determines are necessary to develop the 
115.13 	report.
115.14 	(c) At a minimum, the report must include consideration and analysis of:
115.15 	(1) methods to identify the owner, operator, and any lessee of the motor vehicle;
115.16 	(2) compliance with federal enforcement requirements related to holders of a commercial 
115.17 	driver's license;
115.18 	(3) authority of individuals who are not peace officers to issue citations;
115.19 	(4) authority of individuals who are not peace officers to issue citations electronically;
115.20 	(5) judicial and court administrative capacity to process violations issued under the pilot 
115.21 	program authorized in Minnesota Statutes, section 169.147;
115.22 	(6) the appropriate legal classification of citations issued under a camera-based traffic 
115.23 	enforcement system;
115.24 	(7) data practices, including but not limited to concerns related to data privacy;
115.25 	(5) (8) due process, an appeals process, the judicial system, and other legal issues;
115.26 	(6) (9) technology options, constraints, and factors, including the implementation of 
115.27 	electronic citations; and
115.28 	(7) (10) recommendations regarding implementation, including but not limited to any 
115.29 	legislative proposal and information on implementation costs of the pilot program authorized 
115.30 	in Minnesota Statutes, section 169.147.

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

116.1 	Sec. 116. TRAFFIC SAFETY CAMERA SYSTEMS; EVALUATION AND 
116.2 	REPORTING.
 116.3 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms and the 
116.4 	terms defined in Minnesota Statutes, section 169.147, subdivision 1, have the meanings 
116.5 	given.
116.6 	(b) "Commissioner" means the commissioner of transportation.
116.7 	(c) "Commissioners" means the commissioners of transportation and public safety.
116.8 	(d) "Implementing authority" has the meaning given in Minnesota Statutes, section 
116.9 	169.147, subdivision 1, paragraph (e).
116.10 	(e) "Pilot program" means the traffic safety camera system pilot project established in 
116.11 	Minnesota Statutes, section 169.147.
116.12 	(f) "Traffic safety camera system" has the meaning given in Minnesota Statutes, section 
116.13 	169.011, subdivision 85a.
116.14 		Subd. 2.Independent evaluation; general requirements. (a) The commissioner must 
116.15 	arrange for an independent evaluation of traffic safety camera systems that includes analysis 
116.16 	of the pilot program. By December 31, 2028, the commissioner must submit a copy of the 
116.17 	evaluation to the chairs and ranking minority members of the legislative committees with 
116.18 	jurisdiction over transportation policy and finance.
116.19 	(b) The evaluation must be performed outside the Departments of Transportation and 
116.20 	Public Safety by an entity with qualifying experience in traffic safety research. The evaluation 
116.21 	must include any monitoring sites established by an implementing authority.
116.22 	(c) The commissioner must establish an evaluation methodology that provides 
116.23 	standardized metrics and evaluation measures and enables valid statistical comparison across 
116.24 	monitoring sites.
116.25 	(d) At a minimum, the evaluation must:
116.26 	(1) analyze the effectiveness of traffic safety camera systems in lowering travel speeds, 
116.27 	reducing speed differentials, reducing violations of traffic-control signals, and meeting any 
116.28 	other measures identified in the evaluation methodology;
116.29 	(2) perform statistical analyses of traffic speeds, crashes, injuries, fatalities, and other 
116.30 	measurable traffic incidents; and
116.31 	(3) identify any changes in traffic congestion attributable to traffic safety camera systems.
117.1 		Subd. 3.Independent evaluation; implementing authorities. (a) An implementing 
117.2 	authority under the pilot program must follow the evaluation methodology established under 
117.3 	subdivision 2.
117.4 	(b) An implementing authority under the pilot program must provide information for 
117.5 	the evaluation under subdivision 2 as requested and include the following:
117.6 	(1) the total number of warnings issued;
117.7 	(2) the total number of citations issued;
117.8 	(3) the number of people who opted for diversion under Minnesota Statutes, sections 
117.9 	169.06, subdivision 10, paragraph (b), and 169.14, subdivision 13, paragraph (b);
117.10 	(4) gross and net revenue received;
117.11 	(5) expenditures incurred;
117.12 	(6) a description of how the net revenue generated by the program was used;
117.13 	(7) total amount of any payments made to a contractor;
117.14 	(8) the number of employees involved in the pilot program;
117.15 	(9) the type of traffic safety camera system used;
117.16 	(10) the location of each monitoring site;
117.17 	(11) the activation start and stop dates of the traffic safety camera system at each 
117.18 	monitoring site;
117.19 	(12) the number of citations issued, with a breakout by monitoring site;
117.20 	(13) the number of instances in which a traffic enforcement agent reviewed recorded 
117.21 	video or images for a potential violation but did not issue a resulting citation; and
117.22 	(14) details on traffic safety camera system inspection and maintenance activities.
117.23 		Subd. 4.Pilot program reporting. (a) An implementing authority that operates a traffic 
117.24 	safety camera system in a calendar year must publish a report on the authority's website on 
117.25 	the implementation for that calendar year. The report is due by March 1 of the following 
117.26 	calendar year.
117.27 	(b) At a minimum, the report must summarize the activities of the implementing authority 
117.28 	and provide the information required under subdivision 3, paragraph (b).
118.1 		Subd. 5.Legislative report. By January 15, 2029, the commissioners must submit a 
118.2 	report on traffic safety camera systems to the members of the legislative committees with 
118.3 	jurisdiction over transportation policy and finance. At a minimum, the report must:
118.4 	(1) provide a review of the pilot program;
118.5 	(2) provide data on citations issued under the pilot program, with breakouts by year and 
118.6 	location;
118.7 	(3) summarize the results of the independent evaluation under subdivision 2;
118.8 	(4) evaluate any disparities in impacts under the pilot programs, including by income, 
118.9 	by race, and in communities that are historically underrepresented in transportation planning;
118.10 	(5) identify fiscal impacts of implementation of traffic safety camera systems; and
118.11 	(6) make any recommendations regarding ongoing traffic safety camera implementation, 
118.12 	including but not limited to any draft legislative proposal.

118.13 	Sec. 117. REPORT; WORK ZONE SAFETY PILOT PROJECT RESULTS.
 118.14 	(a) By October 1, 2029, the commissioners of transportation and public safety must 
118.15 	submit a report on the results and findings of the work zone pilot project that utilized 
118.16 	camera-based speed enforcement to issue warnings as provided in Minnesota Statutes, 
118.17 	section 169.147, subdivision 17.
118.18 	(b) At a minimum, the report must:
118.19 	(1) provide a review of the work zone pilot project;
118.20 	(2) provide data on warning notices issued by the pilot project, with breakouts by year, 
118.21 	location, and trunk highway type;
118.22 	(3) evaluate any disparities in impacts under the work zone pilot project;
118.23 	(4) make recommendations on the calibration, installation, enforcement, administration, 
118.24 	adjudication, and implementation of speed camera traffic enforcement in trunk highway 
118.25 	work zones, including any statutory or legislative changes needed; and
118.26 	(5) make recommendations on how to integrate trunk highway work zone speed camera 
118.27 	enforcement into the commissioner's strategies, practices, and methods to reduce vehicle 
118.28 	speeds and enhance worker safety in work zones.

118.29 	EFFECTIVE DATE. This section is effective August 1, 2025.

119.1 	Sec. 118. ANTIDISPLACEMENT COMMUNITY PROSPERITY PROGRAM 
119.2 	BOARD.
 119.3 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
119.4 	the meanings given.
119.5 	(b) "Antidisplacement community prosperity program" or "program" means the 
119.6 	antidisplacement community prosperity program established under section 119.
119.7 	(c) "Blue Line light rail transit extension corridor" or "corridor" has the meaning given 
119.8 	in section 119.
119.9 	(d) "Board" means the Antidisplacement Community Prosperity Program Board 
119.10 	established in this section.
119.11 		Subd. 2.Creation. The Antidisplacement Community Prosperity Program Board is 
119.12 	established to implement the antidisplacement community prosperity program.
119.13 		Subd. 3.Membership. Subject to modification as provided in the bylaws adopted under 
119.14 	subdivision 8, the board consists of the members of the Blue Line Extension 
119.15 	Anti-Displacement Working Group established by Hennepin County and the Metropolitan 
119.16 	Council, as specified in the Blue Line Extension Anti-Displacement Recommendations 
119.17 	report published in April 2023 by the Center for Urban and Regional Affairs at the University 
119.18 	of Minnesota.
119.19 		Subd. 4.Chair; other officers. The chair of the Metropolitan Council, or a designee, 
119.20 	is responsible for chairing the first meeting of the board. The board must elect from among 
119.21 	its members a chair and vice-chair at the first meeting.
119.22 		Subd. 5.Duties. (a) The board must establish an application process to review and 
119.23 	approve proposed expenditures for the antidisplacement community prosperity program. 
119.24 	An application for a proposed expenditure must receive approval from a majority of board 
119.25 	members. The board may request information on financial disclosures from any entity or 
119.26 	individual seeking funds under the program, including a complete independent financial 
119.27 	audit of the entity. The board must not approve an expenditure that would violate the standard 
119.28 	under subdivision 8, paragraph (a), clause (2).
119.29 	(b) The application process must evaluate proposed expenditures to determine whether 
119.30 	the expenditure is for a qualifying purpose under section 119, subdivision 3, whether an 
119.31 	equal amount of funds have been secured from nonstate sources as required in section 119, 
119.32 	and whether the expenditure benefits the people along the Blue Line light rail transit extension 
119.33 	corridor.
120.1 	(c) The Metropolitan Council and state and metropolitan agencies must cooperate with 
120.2 	the board and provide information on the Blue Line light rail transit extension project in a 
120.3 	timely manner to assist the board in conducting its business and reviewing applications for 
120.4 	program expenditures.
120.5 	(d) The board must review and consult with the Minnesota Housing Finance Agency, 
120.6 	the Department of Employment and Economic Development, the Department of Labor and 
120.7 	Industry, and the Metropolitan Council on applications for prospective expenditures to 
120.8 	identify areas of need along the project corridor and ensure expenditures achieve the 
120.9 	qualifying purpose established in section 119, subdivision 3.
120.10 		Subd. 6.Expiration. The Antidisplacement Community Prosperity Program Board 
120.11 	expires on June 30, 2030.
120.12 		Subd. 7.Administration. By August 1, 2024, the board must be convened and meet a 
120.13 	minimum of three times. On or after January 1, 2025, the board must meet at least quarterly 
120.14 	to consider, review, and approve proposed expenditures.
120.15 		Subd. 8.Bylaws; requirements. (a) The board must adopt bylaws related to board 
120.16 	governance. The bylaws must establish:
120.17 	(1) procedures for board appointments and appointing authorities, membership, terms, 
120.18 	removal, and vacancies; and
120.19 	(2) a standard and procedures for recusal and conflicts of interest.
120.20 	(b) Appointments to the board must not include a member of the legislature.
120.21 	(c) The board may adopt procedures to carry out the requirements of the program and 
120.22 	as needed to review, approve, and facilitate applications for eligible program expenditures 
120.23 	under section 119, subdivision 3.
120.24 		Subd. 9.Compensation. Board member compensation and reimbursement for expenses 
120.25 	are governed by Minnesota Statutes, section 15.0575, subdivision 3.
120.26 		Subd. 10.Administrative support; staff. Hennepin County must provide meeting space, 
120.27 	administrative support, and staff support for the board. The board must hold its meetings 
120.28 	within one mile of the Blue Line light rail transit extension project corridor.
120.29 		Subd. 11.Open meeting law. Meetings of the board are subject to Minnesota Statutes, 
120.30 	chapter 13D.

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

121.1 	Sec. 119. BLUE LINE LIGHT RAIL TRANSIT EXTENSION 
121.2 	ANTIDISPLACEMENT COMMUNITY PROSPERITY PROGRAM.
121.3 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
121.4 	the meanings given.
121.5 	(b) "Antidisplacement community prosperity program" or "program" means the program 
121.6 	established under subdivision 2.
121.7 	(c) "Antidisplacement community prosperity program money" or "program money" 
121.8 	means the money allocated to the program from the state.
121.9 	(d) "Blue Line light rail transit extension corridor" or "corridor" means the neighborhoods 
121.10 	and communities within one mile of the route selected for the Blue Line light rail transit 
121.11 	extension project and the neighborhoods and communities within one mile of the former 
121.12 	Blue Line light rail transit extension project route.
121.13 		Subd. 2.Establishment. The antidisplacement community prosperity program is 
121.14 	established to preserve and enhance affordable housing, small business support, job training 
121.15 	and placement, and economic vitality and to benefit the people and sense of community 
121.16 	along the Blue Line light rail transit extension corridor. Proposed program expenditures are 
121.17 	reviewed and approved by the Antidisplacement Community Prosperity Program Board 
121.18 	under section 118.
121.19 		Subd. 3.Qualifying purposes. Program money must only be expended for the following 
121.20 	purposes:
121.21 	(1) affordable housing to support:
121.22 	(i) existing residents staying in place along the project corridor; and
121.23 	(ii) development, preservation, and access to safe affordable housing and house choice;
121.24 	(2) small business and community ownership support to:
121.25 	(i) incentivize community institutions, businesses, and community members to own 
121.26 	property along the corridor and preserve cultural heritage;
121.27 	(ii) connect business owners, community institutions, and community members in the 
121.28 	corridor to other commercial nodes;
121.29 	(iii) improve the business climate before, during, and after construction in the corridor;
121.30 	(iv) prioritize the development of spaces for small businesses;
121.31 	(v) support opportunities for existing businesses to stay in place and feel supported; and
122.1 	(vi) create opportunities for further community ownership in the corridor while preserving 
122.2 	existing levels of ownership;
122.3 	(3) public space infrastructure enhancements to:
122.4 	(i) improve infrastructure around the project and corridor;
122.5 	(ii) enhance community connections to the corridor; and
122.6 	(iii) preserve cultural heritage in the corridor; and
122.7 	(4) job training and placement to increase corridor resident participation in the Blue 
122.8 	Line light rail transit extension project and program initiatives.
122.9 		Subd. 4.Program governance. Expenditures funded under this section must be reviewed 
122.10 	and approved by the Antidisplacement Community Prosperity Program Board established 
122.11 	in section 118. The board's review must determine whether a prospective expenditure is for 
122.12 	a qualifying purpose as provided in subdivision 3. The board must not approve an expenditure 
122.13 	for any purpose unless the purpose has received an equal amount of funding from nonstate 
122.14 	sources, including federal, local, Metropolitan Council, or philanthropic funding. The board 
122.15 	is responsible for administering the program expenditure to the approved entity or individual.
122.16 		Subd. 5.Report. By February 1 of each year, the Antidisplacement Community 
122.17 	Prosperity Program Board must submit a report to the chairs and ranking minority members 
122.18 	of the legislative committees with jurisdiction over transportation policy and finance. The 
122.19 	report must include a complete review and summary of antidisplacement community 
122.20 	programming, including:
122.21 	(1) a detailed fiscal review of all expenditures, including a report on expenditures not 
122.22 	approved by the board;
122.23 	(2) the criteria for determining whether a prospective expenditure is for a qualifying 
122.24 	purpose, including a detailed analysis of the decision-making process in applying the factors 
122.25 	set forth in subdivision 3;
122.26 	(3) a description of programs or activities funded with expenditures approved by the 
122.27 	board, including any measurable outcomes achieved as a result of the funding;
122.28 	(4) the source and amount of money collected and distributed by the board;
122.29 	(5) an explanation of administrative expenses and staffing costs related to the board's 
122.30 	administration of the program, including identifying each board member's role and 
122.31 	responsibility;
122.32 	(6) detailed financial information of nonstate funding received by the board;
123.1 	(7) a detailed financial review of instances when the board required a complete, 
123.2 	independent financial audit to the extent allowed under law; and
123.3 	(8) documentation of any identified misuse of expenditures or expenditures not deemed 
123.4 	to be a qualified purpose under the criteria of subdivision 3.
123.5 		Subd. 6.Expiration. The antidisplacement community prosperity program expires on 
123.6 	June 30, 2030.

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

123.8 	Sec. 120. COMMUNITY ROADSIDE LANDSCAPE PARTNERSHIPS.
 123.9 	Subject to available funds, the commissioner of transportation must assess and undertake 
123.10 	methods to improve and expand the Department of Transportation's community roadside 
123.11 	landscape partnership program, including:
123.12 	(1) identifying and evaluating locations for partnership opportunities throughout the 
123.13 	state where there is high traffic volume and minimal existing vegetation coverage in the 
123.14 	form of trees or large shrubs;
123.15 	(2) performing outreach and engagement about the program with eligible community 
123.16 	partners;
123.17 	(3) prioritizing roadsides where vegetation could reduce neighborhood noise impacts or 
123.18 	improve aesthetics for neighborhoods that border interstate highways without regard to 
123.19 	whether there are existing noise walls; and
123.20 	(4) analyzing methods to include cost sharing between the department and participating 
123.21 	community partners for ongoing landscape maintenance.

123.22 	Sec. 121. MINNESOTA ADVISORY COUNCIL ON INFRASTRUCTURE 
123.23 	IMPLEMENTATION ACTIVITIES.
 123.24 	(a) Appointing authorities under Minnesota Statutes, section 16B.357, subdivision 2, 
123.25 	must make initial appointments by May 1, 2025.
123.26 	(b) By May 1, 2025, the commissioner of administration must hire an executive director 
123.27 	as provided under Minnesota Statutes, section 16B.359.
123.28 	(c) Following the appointments under paragraph (a) and hiring an executive director 
123.29 	under paragraph (b), the Minnesota Advisory Council on Infrastructure established under 
123.30 	Minnesota Statutes, section 16B.357, must undertake community engagement efforts 
123.31 	throughout the state that include hearings to obtain comments and information related to 
124.1 	providing for effective and efficient management of infrastructure and preserving and 
124.2 	extending the longevity of Minnesota's public and privately owned infrastructure.

124.3 	Sec. 122. PUBLIC EDUCATION CAMPAIGN; MOTORCYCLE OPERATIONS.
 124.4 	The commissioner of public safety must implement a statewide public education campaign 
124.5 	to alert drivers and the public on how motorcycles may safely overtake and pass a vehicle 
124.6 	within the same lane or between parallel lanes. The information must be consistent with the 
124.7 	requirements of Minnesota Statutes, section 169.974, subdivision 5.

124.8 	Sec. 123. DRIVER AND VEHICLE SERVICES; MATERIALS IN A LANGUAGE 
124.9 	OTHER THAN ENGLISH.
 124.10 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
124.11 	the meanings given.
124.12 	(b) "Commissioner" means the commissioner of public safety.
124.13 	(c) "Deputy registrar" means a public or private deputy registrar appointed by the 
124.14 	commissioner under Minnesota Statutes, section 168.33.
124.15 	(d) "Driver's license agent" means a public or private driver's license agent appointed 
124.16 	by the commissioner under Minnesota Statutes, section 171.061.
124.17 	(e) "Equivalent materials" means written materials such as forms, applications, 
124.18 	questionnaires, letters, or notices that are used to ask or order a person to provide information 
124.19 	or to give a person information on provisions relevant to a person's rights, duties, or privileges 
124.20 	under Minnesota Statutes, chapters 168, 168A, and 171, offered in a qualifying language.
124.21 	(f) "Qualifying language" means a language not in English and must include Spanish, 
124.22 	Hmong, Somali, Karen, Russian, Vietnamese, and any other language used by significant 
124.23 	populations within Minnesota as determined in subdivision 2.
124.24 	(g) "Substantial number" means 20 percent of the total number of transactions or office 
124.25 	visits at a given deputy registrar or driver's license agent location.
124.26 		Subd. 2.Offering of translated materials required. (a) The commissioner must produce 
124.27 	equivalent materials for distribution and use by a deputy registrar or driver's license agent 
124.28 	to a non-English speaking person seeking the service of a deputy registrar or driver's license 
124.29 	agent. The commissioner must translate materials in English into a qualifying language and 
124.30 	prioritize translation of material that is distributed most frequently to the public.
125.1 	(b) The commissioner, in consultation with the commissioner of administration and the 
125.2 	organizations specified in paragraph (c), must determine whether a location of an appointed 
125.3 	deputy registrar or driver's license agent serves a substantial number of non-English speaking 
125.4 	people and whether the non-English speaking population has access to equivalent materials 
125.5 	in a qualifying language. If the commissioner determines a location serves a substantial 
125.6 	number of non-English speaking people, the commissioner must notify the location and 
125.7 	provide the equivalent materials in all qualifying languages to the deputy registrar or driver's 
125.8 	license agent free of charge. If the commissioner determines a location serves a substantial 
125.9 	number of non-English speaking people but the language spoken is not a qualifying language, 
125.10 	the commissioner must produce equivalent materials for distribution and use by the location 
125.11 	in the nonqualifying language within 30 days of its determination.
125.12 	(c) The commissioner must consult with the Minnesota Council on Latino Affairs, the 
125.13 	Minnesota Council on Asian Pacific Minnesotans, the Council for Minnesotans of African 
125.14 	Heritage, and other organizations representing other non-English speaking people on the 
125.15 	extent of services offered by a deputy registrar or driver's license agent location and whether 
125.16 	there is need for equivalent materials at that location. The commissioner must periodically 
125.17 	consult with the organizations specified in this paragraph to determine whether:
125.18 	(1) equivalent materials are required in new, nonqualifying additional languages spoken 
125.19 	by populations within Minnesota; and
125.20 	(2) existing deputy registrar or driver's license agent locations are meeting the needs of 
125.21 	non-English speaking populations in qualifying and nonqualifying languages.
125.22 	(d) If a non-English speaking person seeks the services of a deputy registrar or driver's 
125.23 	license agent but the language spoken by the person is not determined to be a qualifying 
125.24 	language, the deputy registrar or driver's license agent must determine whether the 
125.25 	Department of Public Safety has produced those materials in the language spoken by the 
125.26 	person. If the materials are not yet available, the Division of Driver and Vehicle Services 
125.27 	must be notified and provide the equivalent materials in the new language within 30 days. 
125.28 	The equivalent materials must be provided free of charge to the requester.
125.29 	(e) If the commissioner determines that equivalent materials are required in a new 
125.30 	language, the commissioner must notify the organizations specified in paragraph (c) and 
125.31 	provide notice to deputy registrars and driver's license agents of the availability of equivalent 
125.32 	materials. The commissioner, in consultation with the commissioner of administration, must 
125.33 	establish administrative support procedures for assisting deputy registrars and driver's license 
125.34 	agents with requests for equivalent materials in a qualifying or nonqualifying language.
126.1 		Subd. 3.Report required. By February 1, 2026, the commissioner must submit a report 
126.2 	to the chairs and ranking minority members of the legislative committees with jurisdiction 
126.3 	over transportation policy and finance. The report must detail the efforts of the Division of 
126.4 	Driver and Vehicle Services to implement the requirements of this section and must include 
126.5 	the following:
126.6 	(1) the locations of deputy registrars and driver's license agents who serve a substantial 
126.7 	number of non-English speaking people on a yearly basis;
126.8 	(2) the different languages requested at locations serving a substantial number of 
126.9 	non-English speaking people;
126.10 	(3) how many requests for equivalent materials in languages other than English were 
126.11 	made but not at locations that serve a substantial number of non-English speaking people 
126.12 	on a yearly basis;
126.13 	(4) the expenditures used on producing equivalent materials in languages other than 
126.14 	English;
126.15 	(5) any recommended legislative changes needed to produce equivalent materials in 
126.16 	languages other than English statewide;
126.17 	(6) any information or feedback from deputy registrars and driver's license agents; and
126.18 	(7) any information or feedback from persons who requested equivalent materials under 
126.19 	this section.

126.20 	EFFECTIVE DATE. This section is effective October 1, 2024.

126.21 	Sec. 124. STUDY; DYNAMIC TRANSPORTATION OPTIONS; GREATER 
126.22 	MINNESOTA TRANSIT PLAN; REPORT.
 126.23 		Subdivision 1.Definitions. For purposes of this section, the following terms have the 
126.24 	meanings given:
126.25 	(1) "commissioner" means the commissioner of transportation;
126.26 	(2) "dynamic transportation options" includes but is not limited to nonfixed route options, 
126.27 	prearranged and dial-a-ride options arranged via telephone, digital application, or website; 
126.28 	demand response microtransit service for last-mile connection; and private transportation 
126.29 	companies, including but not limited to transportation network companies or taxi companies;
126.30 	(3) "nonmetropolitan county" means any Minnesota county other than those under 
126.31 	Minnesota Statutes, section 473.121, subdivision 4; and
127.1 	(4) "wheelchair accessible vehicle" means a vehicle equipped with a ramp or lift capable 
127.2 	of transporting nonfolding motorized wheelchairs, mobility scooters, or other mobility 
127.3 	devices.
127.4 		Subd. 2.Study required; pilot program proposal. (a) The commissioner must study, 
127.5 	in collaboration with identified stakeholders in subdivision 3, increasing access to transit 
127.6 	and transportation options, including ridesharing or other dynamic transportation options 
127.7 	in rural, nonmetropolitan areas. The report must identify existing gaps in transportation 
127.8 	service in greater Minnesota. The commissioner may include the results of the report required 
127.9 	under this section in the 2025 Greater Minnesota transit investment plan provided in 
127.10 	Minnesota Statutes, section 174.24, subdivision 1a.
127.11 	(b) The commissioner must outline and make recommendations on establishing a 
127.12 	proposed rural dynamic transportation options pilot program in coordination with a rural 
127.13 	transportation coordinating council. The proposed pilot program must attempt to increase 
127.14 	service in the rural transportation coordinating council's area by identifying gaps in service 
127.15 	and propose options to increase mobility, including but not limited to the use of transportation 
127.16 	network companies or taxis with access to wheelchair accessible vehicles. The proposed 
127.17 	pilot project plan must compare the regional transportation coordinating council's current 
127.18 	service area versus its proposed new service area, the cost differential, and the anticipated 
127.19 	new users of the pilot program. The proposed pilot project plan must include a timeline for 
127.20 	deployment and what resources may be needed to implement the pilot for at least two years.
127.21 		Subd. 3.Stakeholders. (a) The commissioner must develop the study in consultation 
127.22 	with:
127.23 	(1) one representative from the Minnesota Council on Disability;
127.24 	(2) two representatives, who must be jointly selected by the American Council of the 
127.25 	Blind of Minnesota, the National Federation of the Blind of Minnesota, and the Minnesota 
127.26 	DeafBlind Association;
127.27 	(3) one representative from a transportation network company, as defined in Minnesota 
127.28 	Statutes, section 65B.472, subdivision 1;
127.29 	(4) one representative from a taxicab company;
127.30 	(5) one representative with familiarity and experience in transit vehicle dispatching 
127.31 	services and route connection expertise;
127.32 	(6) the executive director of the Minnesota Council on Transportation Access or a 
127.33 	designee;
128.1 	(7) two representatives from a Minnesota regional transportation coordination council, 
128.2 	one of whom must be a volunteer driver who transports persons or goods on behalf of a 
128.3 	nonprofit organization or governmental unit using their own private passenger vehicle or a 
128.4 	volunteer driver coordinator;
128.5 	(8) one county commissioner from a nonmetropolitan county;
128.6 	(9) a private transit or transportation services provider;
128.7 	(10) one representative from a transit provider who provides transportation services in 
128.8 	a small urban area and receives funds under United States Code, title 49, section 5307; and
128.9 	(11) one representative from a transit provider who provides transportation services in 
128.10 	a rural area and receives funds under United States Code, title 49, section 5311.
128.11 	(b) The commissioner may convene an in-person meeting of stakeholders to develop 
128.12 	the report's contents and recommendations. The commissioner is responsible for providing 
128.13 	accessible meeting space and administrative and technical support for any stakeholder 
128.14 	meeting to develop the report. Public members of the working group serve without 
128.15 	compensation or payment of expenses.
128.16 	(c) If the groups specified in paragraph (a), clause (2), are unable to select a member to 
128.17 	participate in the development of the report, the commissioner may appoint two members 
128.18 	of the public who:
128.19 	(1) are blind, partially blind, or deafblind; and
128.20 	(2) possess relevant experience in transportation or transit policy or as a rider of special 
128.21 	transportation services.
128.22 		Subd. 4.Duties. At a minimum, the commissioner and the stakeholders provided in 
128.23 	subdivision 3 must identify and analyze:
128.24 	(1) inefficiencies in route connections and demand response;
128.25 	(2) improvements in coordination across different public, private, and individual sources 
128.26 	of transportation;
128.27 	(3) existing gaps in service in Greater Minnesota, including but not limited to:
128.28 	(i) crossing county lines;
128.29 	(ii) collaboration between counties;
128.30 	(iii) resolving local funding share issues; and
128.31 	(iv) vehicle availability, operating funds, staffing, and other capital issues;
129.1 	(4) improvements in dispatch and service time for public and private service, including 
129.2 	an analysis of digital and voice technology commercially available to transportation 
129.3 	providers;
129.4 	(5) areas of coordination to maximize the availability and use of vehicles for ambulatory 
129.5 	people and maximizing the number of wheelchair-accessible vehicles in the program;
129.6 	(6) the impact of Federal Transit Administration rules on mobility service improvements;
129.7 	(7) the impact of Medicare services on transportation availability and options;
129.8 	(8) nonemergency medical transportation issues;
129.9 	(9) the impact of the commissioner's shared mobility work with the Moving Greater 
129.10 	Minnesota Forward program; and
129.11 	(10) rural and small urban transportation funding sources and their limitations for use 
129.12 	of each relevant source.
129.13 		Subd. 5.Report. By February 15, 2025, the commissioner of transportation must report 
129.14 	the results of the study to the chairs and ranking minority members of the legislative 
129.15 	committees with jurisdiction over transportation policy and finance.
129.16 		Subd. 6.Expiration. The requirement for collaboration between the stakeholders and 
129.17 	the commissioner expires on May 15, 2025, or upon submission of the report required under 
129.18 	subdivision 5, whichever is earlier.

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

129.20 	Sec. 125. STUDY; METRO MOBILITY ENHANCEMENTS; REPORT.
 129.21 	(a) The commissioner of transportation must, in consultation with the chair of the 
129.22 	Metropolitan Council, perform a Metro Mobility enhancement and service study and develop 
129.23 	recommendations to improve the efficiency, effectiveness, reliability, dignity, and experience 
129.24 	of riders of the special transportation service under Minnesota Statutes, section 473.386.
129.25 	(b) The study must include:
129.26 	(1) an evaluation of the Metropolitan Council's efforts to deliver improvements in the 
129.27 	reliability, effectiveness, and efficiency of services as required by state and federal law, 
129.28 	including workforce and procurement efforts to meet the demand for Metro Mobility services;
129.29 	(2) an analysis of the extent to which Metro Mobility can fully meet demand for its 
129.30 	services in both the federally defined and state-defined services areas, including a 
130.1 	comprehensive examination of the Metropolitan Council's on-demand taxi alternative for 
130.2 	Metro Mobility-certified riders and Metro Move services;
130.3 	(3) an evaluation of whether Metro Mobility met performance goals for the fulfillment 
130.4 	of ride requests in the state-mandated service area under Minnesota Statutes, section 473.386, 
130.5 	subdivision 1, paragraph (a);
130.6 	(4) an analysis of whether state service requirements in law should be amended to prohibit 
130.7 	or restrict the denial of ride requests in the state-mandated service area and whether such a 
130.8 	requirement in service can be met with existing resources;
130.9 	(5) suggested improvements to the Metropolitan Council's oversight and management 
130.10 	of its reservation and dispatch structure and a detailed analysis and recommendations on a 
130.11 	Metropolitan Council-operated centralized reservation system;
130.12 	(6) a comprehensive analysis of the Metropolitan Council's oversight and management 
130.13 	of transit providers contracted to provide rides for Metro Mobility, including services plans, 
130.14 	payment and bonus structure, and performance standards;
130.15 	(7) recommendations on the adequacy of the Metro Mobility complaints process and an 
130.16 	evaluation of whether the Metropolitan Council receives all rider concerns and whether 
130.17 	concerns are addressed appropriately;
130.18 	(8) an evaluation of the Metro Mobility enhancement pilot program instituted under 
130.19 	Laws 2023, chapter 68, article 4, section 121;
130.20 	(9) an evaluation and assessment of how to implement the use of transportation network 
130.21 	companies or taxi services to provide an enhanced service option in which riders may pay 
130.22 	a higher fare than other users of Metro Mobility services;
130.23 	(10) an evaluation of the feasibility of nonsubsidized, subsidized, and tiered ride services 
130.24 	handled by a dispatching service provider; and
130.25 	(11) an analysis of and recommendations for comprehensive improvements in route 
130.26 	coordination, call sequencing and customer service, integration with transportation network 
130.27 	company applications, and cataloging rides for maximum efficiency and driver compensation.
130.28 	(c) The Metropolitan Council must cooperate with the Department of Transportation 
130.29 	and provide information requested in a timely fashion to implement and conduct the study.
130.30 	(d) The commissioner must consult with interested parties and stakeholders in conducting 
130.31 	the service study and report, including representatives from the Minnesota Council on 
130.32 	Disability, American Council of the Blind of Minnesota, the Minnesota DeafBlind 
131.1 	Association, the National Federation of the Blind's Minnesota chapter, metro-area private 
131.2 	transportation companies, identified riders of Metro Mobility, transit providers, Metro 
131.3 	Mobility drivers, the Board on Aging, the Department of Human Services, and any other 
131.4 	interested party with experience in providing mobility services for disabled persons.
131.5 	(e) By February 15, 2026, the commissioner must submit the report and findings to the 
131.6 	chairs and ranking minority members of the legislative committees with jurisdiction over 
131.7 	transportation policy and finance.

131.8 	Sec. 126. STUDY; HIGHWAY DESIGNATION REVIEW COMMITTEE.
 131.9 	(a) By December 15, 2024, the commissioner of transportation must conduct a study on 
131.10 	the establishment of a standing committee to evaluate and authorize designations of highways 
131.11 	and bridges on the trunk highway system.
131.12 	(b) At a minimum, the study required in paragraph (a) must:
131.13 	(1) evaluate the feasibility and effectiveness of establishing a standing committee with 
131.14 	authority to review proposals for designation of memorial highways and bridges on the 
131.15 	trunk highway system and approve a designation without enactment of a law that specifies 
131.16 	the designation in the manner under Minnesota Statutes, section 161.14;
131.17 	(2) propose criteria for a standing committee to evaluate each designation proposal, with 
131.18 	consideration of public interest, community support, and the locations of existing 
131.19 	designations;
131.20 	(3) examine whether other states have adopted similar review committees and identify 
131.21 	any best practices or other considerations;
131.22 	(4) evaluate the potential costs or benefits to authorizing establishment of designations 
131.23 	as provided under clause (1);
131.24 	(5) assess the required resources, staffing, and administrative support needed to establish 
131.25 	and maintain the standing committee; and
131.26 	(6) recommend draft legislation.
131.27 	(c) The commissioner must submit the results of the study to the chairs and ranking 
131.28 	minority members of the legislative committees with jurisdiction over transportation policy 
131.29 	and finance.

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

132.1 	Sec. 127. STUDY; ELECTRIC-ASSISTED BICYCLE YOUTH OPERATION.
 132.2 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
132.3 	the meanings given.
132.4 	(b) "Active transportation advisory committee" means the committee established in 
132.5 	Minnesota Statutes, section 174.375.
132.6 	(c) "Advisory Council on Traffic Safety" means the advisory council established in 
132.7 	Minnesota Statutes, section 4.076.
132.8 	(d) "Commissioners" means the commissioner of public safety and the commissioner 
132.9 	of transportation.
132.10 	(e) "Electric-assisted bicycle" has the meaning given in Minnesota Statutes, section 
132.11 	169.011, subdivision 27.
132.12 		Subd. 2.Electric-assisted bicycles study. (a) The commissioners must conduct a study 
132.13 	and develop recommendations on the operation of electric-assisted bicycles by persons 
132.14 	under the age of 18 to increase the safety of riders, other cyclists, and all other users of 
132.15 	active transportation infrastructure.  The commissioners must conduct the study jointly with 
132.16 	the active transportation advisory committee and the Advisory Council on Traffic Safety.
132.17 	(b) The study required under paragraph (a) must:
132.18 	(1) identify challenges to the safe operation of electric-assisted bicycles by those under 
132.19 	the age of 18;
132.20 	(2) evaluate existing legal authority for strategies, practices, and methods to reduce the 
132.21 	availability of modifications to the electric motor of electric-assisted bicycles;
132.22 	(3) make recommendations on whether to change state law to improve electric-assisted 
132.23 	bicycle safety on roads, trails, and other areas where safe operation of electric-assisted 
132.24 	bicycles is needed; and
132.25 	(4) propose educational and public awareness campaigns to educate the public about 
132.26 	electric-assisted bicycles, promote their safe operation, and raise awareness of their unique 
132.27 	characteristics when operating on roadways.
132.28 	(c) In conducting the study with the Advisory Council on Traffic Safety and the active 
132.29 	transportation advisory committee, the commissioners must consult with interested 
132.30 	stakeholders, including but not limited to:
132.31 	(1) active transportation and bicycling advocates;
133.1 	(2) local elected officials;
133.2 	(3) retailers and manufacturers of electric-assisted bicycles;
133.3 	(4) the Department of Natural Resources;
133.4 	(5) the Department of Commerce;
133.5 	(6) E-12 educators with experience in active transportation safety training;
133.6 	(7) medical professionals and emergency medical technicians;
133.7 	(8) the State Patrol and local law enforcement; and
133.8 	(9) consumer protection advocates.
133.9 		Subd. 3.Report. By February 1, 2026, the commissioners must submit the study 
133.10 	conducted under this section to the chairs and ranking minority members of the legislative 
133.11 	committees with jurisdiction over transportation policy and finance.

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

133.13 	Sec. 128. STUDY; DEPUTY REGISTRAR AND DRIVER'S LICENSE AGENT 
133.14 	LOCATIONS COMPETITIVE BIDDING.
 133.15 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
133.16 	the meanings given.
133.17 	(b) "Commissioner" means the commissioner of public safety.
133.18 	(c) "Deputy registrar" means a public or private deputy registrar appointed by the 
133.19 	commissioner under Minnesota Statutes, section 168.33.
133.20 	(d) "Driver's license agent" means a public or private driver's license agent appointed 
133.21 	by the commissioner under Minnesota Statutes, section 171.061.
133.22 		Subd. 2.Study required. The commissioner must conduct a driver's license agent and 
133.23 	deputy registrar open bidding process study. The study must evaluate and analyze the 
133.24 	appointment process for a replacement deputy registrar or driver's license agent when an 
133.25 	appointed deputy registrar or driver's license agent closes an approved office location. At 
133.26 	a minimum, the study must evaluate the requirements established in Minnesota Statutes, 
133.27 	sections 168.33, subdivision 8b, and 171.061, subdivision 5a, and must include:
133.28 	(1) the commissioner's proposal to establish a competitive bidding process to appoint a 
133.29 	replacement deputy registrar or driver's license agent at an existing approved office location 
133.30 	or approved replacement location;
134.1 	(2) recommended legislation to establish, implement, administer, and enforce a 
134.2 	competitive bidding process and its requirements in statute;
134.3 	(3) an analysis of how the competitive bidding process would interact with the 
134.4 	commissioner's existing rules on deputy registrar and driver's license agent office locations 
134.5 	and propose recommendations to reconcile any issues;
134.6 	(4) the effect of a competitive bidding process on service outcomes, financial 
134.7 	sustainability, and needed financial assistance for deputy registrars and driver's license 
134.8 	agents;
134.9 	(5) how a competitive bidding process would initiate business development for persons 
134.10 	who are seeking appointment as a deputy registrar or driver's license agent;
134.11 	(6) the expected fiscal impact for creating and administering a competitive bidding 
134.12 	process;
134.13 	(7) an evaluation and recommendations on the impact of implementing a competitive 
134.14 	bidding process on existing deputy registrar and driver's license agent locations; and
134.15 	(8) feedback solicited from existing deputy registrars and driver's license agents on the 
134.16 	commissioner's proposal.
134.17 		Subd. 3.Report. By February 1, 2025, the commissioner must complete the study and 
134.18 	report the results of the study to the chairs and ranking minority members of the legislative 
134.19 	committees with jurisdiction over transportation policy and finance. The report must include 
134.20 	proposed legislation to establish and implement the competitive bidding process required 
134.21 	in Minnesota Statutes, sections 168.33, subdivision 8b, and 171.061, subdivision 5a.

134.22 	Sec. 129. STUDY; WAYSIDE DETECTORS.
 134.23 	(a) For purposes of this section, the following terms have the meanings given:
134.24 	(1) "commissioner" means the commissioner of transportation; and
134.25 	(2) "wayside detector" or "wayside detector system" means one or more electronic 
134.26 	devices that:
134.27 	(i) perform automated scanning of passing trains, rolling stock, and on-track equipment 
134.28 	to detect defects or precursors to defects in equipment or component parts; and
134.29 	(ii) provide notification to individuals of a defect or precursor to a defect.
134.30 	(b) The commissioner must conduct a comprehensive study on wayside detector systems 
134.31 	and other rail inspection technologies. The commissioner must engage with the governor's 
135.1 	Council on Freight Rail under Executive Order 24-02 to consider and review issues related 
135.2 	to wayside detectors, including analyzing existing federal regulations and guidance, incidents 
135.3 	and performance data, safety complaints, and best practices.
135.4 	(c) The study must:
135.5 	(1) identify current practices for defect notification to train crews;
135.6 	(2) identify current practices for wayside detector systems or other inspection technology 
135.7 	deployment and maintenance;
135.8 	(3) analyze deployed and emerging wayside detector system technology, including 
135.9 	known detector types and quantities and may include but is not limited to the following 
135.10 	inspection technologies:
135.11 	(i) acoustic bearing detectors;
135.12 	(ii) hot box detectors;
135.13 	(iii) wheel tread inspection detectors;
135.14 	(iv) wheel impact load detectors;
135.15 	(v) wheel temperature detectors;
135.16 	(vi) wheel profile detectors; and
135.17 	(vii) machine vision systems;
135.18 	(4) analyze wayside detector systems' impacts on railroad safety and identify accidents 
135.19 	and incident trends of rolling stock or other conditions monitored by wayside detectors;
135.20 	(5) estimate costs of requiring wayside detector systems for Class II and Class III railroads 
135.21 	and rail carriers and identify potential state funding mechanisms to institute the requirements;
135.22 	(6) include a federal preemption analysis of mandating wayside detector systems under 
135.23 	state law that includes an analysis and examination of federal law, case law, and federal 
135.24 	guidance;
135.25 	(7) analyze the costs and impacts, if any, on the transport of goods on certain Minnesota 
135.26 	industries and sectors, including agriculture, taconite mining, manufacturing, timber, retail, 
135.27 	and automotive, if implementation of a wayside detector system is required in Minnesota; 
135.28 	and
135.29 	(8) review current and anticipated Federal Railroad Administration efforts to regulate 
135.30 	wayside detector systems, including guidance from the federal Railroad Safety Advisory 
135.31 	Committee on wayside detectors.
136.1 	(d) By January 15, 2026, the commissioner must submit a joint report with the governor's 
136.2 	Council on Freight Rail on the study to the chairs and ranking minority members of the 
136.3 	legislative committees with jurisdiction over transportation, commerce, and civil law policy 
136.4 	and finance.

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

136.6 	Sec. 130. STUDY; COMMERCIAL DRIVER WORKFORCE.
 136.7 	(a) The commissioners of public safety and transportation must jointly conduct a study 
136.8 	to address commercial driver shortages in transportation and transit sectors and propose 
136.9 	recommendations to address the challenges posed by driver shortages and the attrition rate 
136.10 	of commercial vehicle drivers in Minnesota. The study must comprehensively examine 
136.11 	challenges in test access, workforce development, driver compensation and retention, training 
136.12 	and certification offered by postsecondary institutions, and how each of those challenges 
136.13 	may be addressed by the legislature or other state regulatory action.
136.14 	(b) In conducting the study, the commissioners must consult with stakeholders involved 
136.15 	in the training, certification, licensing, development, and education of commercial drivers, 
136.16 	including but not limited to representatives from trucking companies, freight and logistics 
136.17 	companies, transit and bus operators, labor unions representing commercial motor vehicle 
136.18 	drivers, public and private commercial driver's license testing providers and behind-the-wheel 
136.19 	instructors, or any other entity that may assist the commissioners in conducting the study. 
136.20 	Stakeholders must assist the commissioners to identify key issues or policies that warrant 
136.21 	further examination, address or clarify competing claims across industries, provide analysis 
136.22 	on the reasons behind an operator shortage in Minnesota, and identify ways to increase 
136.23 	driver access, participation, and retention in commercial driving operations.
136.24 	(c) The commissioners must also consult with the commissioners of labor and industry, 
136.25 	commerce, and employment and economic development; Metro Transit; the Center for 
136.26 	Transportation Studies at the University of Minnesota; and the Board of Trustees of the 
136.27 	State Colleges and Universities of Minnesota in conducting the study and developing the 
136.28 	report to the legislature.
136.29 	(d) The commissioners must convene an initial meeting with stakeholders and 
136.30 	representatives from the agencies specified in paragraph (c) by July 15, 2024, to prepare 
136.31 	for the study, identify areas of examination, and establish a solicitation process for public 
136.32 	comment on the report. The public notification process required under this paragraph must 
136.33 	attempt to solicit participation from the public on commercial driver shortage and workforce 
137.1 	issues and include those comments in the report required under paragraph (f). The 
137.2 	commissioners must convene at least six meetings before publication of the report.
137.3 	(e) The commissioner of transportation is responsible for providing meeting space and 
137.4 	administrative services for meetings with stakeholders in developing the report required 
137.5 	under this section. Public members of the working group serve without compensation or 
137.6 	payment of expenses. The commissioner of transportation must host the public notification, 
137.7 	participation, and comment requirements under paragraph (d) on its website and use the 
137.8 	information in preparing the study.
137.9 	(f) By February 15, 2025, the commissioners must submit the results of the study, 
137.10 	stakeholder and public comments, and recommended legislative changes to the chairs and 
137.11 	ranking minority members of the legislative committees with jurisdiction over transportation 
137.12 	policy and finance.

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

137.14 	Sec. 131. STUDY; SPECIAL LICENSE PLATE REVIEW COMMITTEE.
 137.15 	(a) By February 15, 2025, the commissioner of public safety must conduct a 
137.16 	comprehensive study on the establishment of a standing committee in the Division of Driver 
137.17 	and Vehicle Services to review and approve proposals for special license plates. The study 
137.18 	must also evaluate potential improvements to the current statutory and legislative process 
137.19 	for approving specialty license plates, including removal and delegation of legislative 
137.20 	authority in the approval of new special license plates.
137.21 	(b) The study required in paragraph (a) must:
137.22 	(1) evaluate the feasibility and effectiveness of establishing a standing committee tasked 
137.23 	with reviewing and approving proposals for special license plates;
137.24 	(2) propose criteria for a standing committee to evaluate each special license plate 
137.25 	proposal based on criteria such as public interest, community support, relevance to the 
137.26 	purpose of special license plates, and potential revenue generation;
137.27 	(3) assess the current statutory process for approving special license plates, including 
137.28 	Minnesota Statutes, section 168.1293, and include suggested improvements to the statutory 
137.29 	language to improve transparency, accountability, and public input in the special license 
137.30 	plate process;
137.31 	(4) analyze the roles and responsibilities of relevant stakeholders, including the legislature, 
137.32 	the Department of Public Safety, community organizations, or other interested parties 
138.1 	involved in the current approval, creation, and distribution of special license plates in 
138.2 	Minnesota;
138.3 	(5) examine other states that have adopted similar review committees for special license 
138.4 	plates;
138.5 	(6) evaluate the potential costs or benefits to removing legislative authority to approve 
138.6 	special license plates, including a detailed analysis of fiscal considerations;
138.7 	(7) evaluate whether the creation of a standing committee for review of special license 
138.8 	plates would have any impact on rules currently adopted and enforced by the commissioner, 
138.9 	including Minnesota Rules, part 7403.0500;
138.10 	(8) evaluate whether the standing committee should be responsible for monitoring the 
138.11 	implementation and usage of approved special license plates and recommend any necessary 
138.12 	modifications or discontinuations to existing special license plates;
138.13 	(9) assess the required resources, staffing, and administrative support needed to establish 
138.14 	and maintain the standing committee; and
138.15 	(10) provide any other recommendations to the potential improvement to the special 
138.16 	license plate process, including design, implementation, and public engagement.
138.17 	(c) The commissioner must submit the results of the study to the chairs and ranking 
138.18 	minority members of the legislative committees with jurisdiction over transportation policy 
138.19 	and finance.

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

138.21 	Sec. 132. REVISOR INSTRUCTION.
 138.22 	(a) The revisor of statutes must recodify Minnesota Statutes, section 169.21, subdivision 
138.23 	6, as Minnesota Statutes, section 171.0701, subdivision 1b. The revisor must correct any 
138.24 	cross-references made necessary by this recodification.
138.25 	(b) The revisor of statutes must recodify Minnesota Statutes, section 473.3927, 
138.26 	subdivision 1, as Minnesota Statutes, section 473.3927, subdivision 1b. The revisor must 
138.27 	correct any cross-references made necessary by this recodification.

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

138.29 	Sec. 133. REPEALER.
 138.30 	Minnesota Statutes 2022, section 168.1297, is repealed.

139.1 	ARTICLE 4
139.2 	LABOR APPROPRIATIONS

139.3	Section 1. APPROPRIATIONS.
 	
139.4 	The sums shown in the columns under "Appropriations" are added to the appropriations 
139.5 	in Laws 2023, chapter 53, or other law to the specified agency. The appropriations are from 
139.6 	the general fund, or another named fund, and are available for the fiscal years indicated for 
139.7 	each purpose. The figures "2024" and "2025" used in this article mean that the appropriations 
139.8 	listed under them are available for the fiscal year ending June 30, 2024, or June 30, 2025, 
139.9 	respectively. "The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The 
139.10 	biennium" is fiscal years 2024 and 2025.

139.11				APPROPRIATIONS
	
139.12				Available for the Year
	
139.13				Ending June 30
	
139.14					2024
		2025

139.15	Sec. 2. DEPARTMENT OF HEALTH
 	$
	-0-
	$
	174,000
	
139.16 	$174,000 the second year is for technical 
139.17 	assistance for rulemaking for acceptable blood 
139.18 	lead levels for workers. This is a onetime 
139.19 	appropriation and is available until June 30, 
139.20 	2026.

139.21
139.22	Sec. 3. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT
 	$
	-0-
	$
	9,651,000
	
139.23 	(a) $9,000,000 the second year is for a grant 
139.24 	to Tending the Soil, to design, redesign, 
139.25 	renovate, construct, furnish, and equip the Rise 
139.26 	Up Center, a building located in Minneapolis, 
139.27 	that will house a workforce development and 
139.28 	job training center, administrative offices, and 
139.29 	a public gathering space. This is a onetime 
139.30 	appropriation and is available until June 30, 
139.31 	2029. Notwithstanding Minnesota Statutes, 
139.32 	section 16B.98, subdivision 14, the 
139.33 	commissioner may use up to one percent of 
139.34 	this appropriation for administrative costs.
140.1 	(b) $651,000 the second year is for 
140.2 	implementation of the broadband provisions 
140.3 	in article 13.

140.4	Sec. 4. PUBLIC UTILITIES COMMISSION
 	$
	-0-
	$
	39,000
	
140.5 	$39,000 the second year is for investigation 
140.6 	and enforcement of conduct by or on behalf 
140.7 	of telecommunications carriers, telephone 
140.8 	companies, or cable communications system 
140.9 	providers that impacts public utility or 
140.10 	cooperative electric association infrastructure.

140.11	Sec. 5. DEPARTMENT OF REVENUE
 	$
	-0-
	$
	143,000
	
140.12 	$143,000 the second year is for the disclosure 
140.13 	and records management unit to work on 
140.14 	agency-to-agency data-sharing agreements 
140.15 	related to worker misclassification. This is a 
140.16 	onetime appropriation.

140.17	Sec. 6. ATTORNEY GENERAL
 	$
	-0-
	$
	49,000
	
140.18 	$49,000 the second year is to represent the 
140.19 	Department of Labor and Industry in contested 
140.20 	case hearings related to worker 
140.21 	misclassification. This appropriation is 
140.22 	available until June 30, 2026. The base for this 
140.23 	appropriation is $98,000 in fiscal year 2027 
140.24 	and each year thereafter.

140.25 	Sec. 7. Laws 2023, chapter 53, article 14, section 1, is amended to read:
140.26 	Section 1. EARNED SICK AND SAFE TIME APPROPRIATIONS.
 140.27 	(a) $1,445,000 in fiscal year 2024 and $2,209,000 $1,899,000 in fiscal year 2025 are 
140.28 	appropriated from the general fund to the commissioner of labor and industry for enforcement 
140.29 	and other duties regarding earned sick and safe time under Minnesota Statutes, sections 
140.30 	181.9445 to 181.9448, and chapter 177. The base for this appropriation is $1,899,000 for 
140.31 	fiscal year 2026 and each year thereafter.
141.1 	(b) $300,000 in fiscal year 2024 and $300,000 in fiscal year 2025 are appropriated from 
141.2 	the general fund to the commissioner of labor and industry for grants to community 
141.3 	organizations under Minnesota Statutes, section 177.50, subdivision 4. This is a onetime 
141.4 	appropriation.
141.5 	(c) $310,000 in fiscal year 2025 is appropriated from the general fund to the commissioner 
141.6 	of labor and industry for rulemaking related to earned sick and safe time under Minnesota 
141.7 	Statutes, sections 181.9445 to 181.9448, and chapter 177. This is a onetime appropriation 
141.8 	and is available until June 30, 2027.

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

141.10 	Sec. 8. Laws 2023, chapter 53, article 19, section 2, subdivision 1, is amended to read:

141.12141.11
	Subdivision 1.Total Appropriation
 	$
	47,710,000
	$
	44,044,000
45,017,000

141.13	Appropriations by Fund
	
141.14		2024
	2025
	
141.16141.15
	General
	7,200,000
	4,889,000
5,522,000
	
141.17
141.18	Workers' 
Compensation
	30,599,000
	32,390,000
32,669,000
	
141.19
141.20	Workforce 
Development
	9,911,000
	6,765,000
6,826,000
	
141.21 	The amounts that may be spent for each 
141.22 	purpose are specified in the following 
141.23 	subdivisions. The general fund base for this 
141.24 	appropriation is $4,936,000 $5,150,000 in 
141.25 	fiscal year 2026 and $4,958,000 $5,169,000
141.26 	in fiscal year 2027 and each year thereafter. 
141.27 	The workers compensation fund base is 
141.28 	$32,749,000 $32,892,000 in fiscal year 2026 
141.29 	and $32,458,000 in fiscal year 2027 and each 
141.30 	year thereafter. The workforce development 
141.31 	fund base is $6,765,000 $6,826,000 in fiscal 
141.32 	year 2026 and each year thereafter.

141.33 	Sec. 9. Laws 2023, chapter 53, article 19, section 2, subdivision 3, is amended to read:

141.35141.34
	Subd. 3.Labor Standards
 		6,520,000
		6,270,000
6,964,000

142.1	Appropriations by Fund
	
142.3142.2
	General
	4,957,000
	4,635,000
5,268,000
	
142.4
142.5	Workforce 
Development
	1,563,000
	1,635,000
1,696,000
	
142.6 	The general fund base for this appropriation 
142.7 	is $4,682,000 $4,896,000 in fiscal year 2026 
142.8 	and $4,704,000 $4,915,000 in fiscal year 2027 
142.9 	and each year thereafter.
142.10 	(a) $2,046,000 each year is for wage theft 
142.11 	prevention.
142.12 	(b) $1,563,000 the first year and $1,635,000
142.13 	$1,696,000 the second year are from the 
142.14 	workforce development fund for prevailing 
142.15 	wage enforcement.
142.16 	(c) $134,000 the first year and $134,000 the 
142.17 	second year are for outreach and enforcement 
142.18 	efforts related to changes to the nursing 
142.19 	mothers, lactating employees, and pregnancy 
142.20 	accommodations law.
142.21 	(d) $661,000 the first year and $357,000 the 
142.22 	second year are to perform work for the 
142.23 	Nursing Home Workforce Standards Board. 
142.24 	The base for this appropriation is $404,000 in 
142.25 	fiscal year 2026 and $357,000 in fiscal year 
142.26 	2027.
142.27 	(e) $225,000 the first year and $169,000 the 
142.28 	second year are for the purposes of the Safe 
142.29 	Workplaces for Meat and Poultry Processing 
142.30 	Workers Act.
142.31 	(f) $27,000 the first year is for the creation 
142.32 	and distribution of a veterans' benefits and 
142.33 	services poster under Minnesota Statutes, 
142.34 	section 181.536.
143.1 	(g) $141,000 the second year is to inform and 
143.2 	educate employers relating to Minnesota 
143.3 	Statutes, section 181.960.
143.4 	(h) $56,000 the second year is for education 
143.5 	and training related to employee 
143.6 	misclassification. The base for this 
143.7 	appropriation is $70,000 in fiscal year 2026 
143.8 	and each fiscal year thereafter.
143.9 	(i) From the general fund appropriation for 
143.10 	this purpose, $436,000 in the second year is 
143.11 	available through June 30, 2027.

143.12 	Sec. 10. Laws 2023, chapter 53, article 19, section 2, subdivision 5, is amended to read:

143.14143.13
	Subd. 5.Workplace Safety
 		8,644,000
		7,559,000
7,838,000

143.15	Appropriations by Fund
	
143.16	General
	2,000,000
	-0-
	
143.17
143.18	Workers' 
Compensation
	6,644,000
	7,559,000
7,838,000
	
143.19 	The workers compensation fund base for this 
143.20 	appropriation is $7,918,000 $8,061,000 in 
143.21 	fiscal year 2026 and $7,627,000 in fiscal year 
143.22 	2027 and each year thereafter.
143.23 	$2,000,000 the first year is for the ergonomics 
143.24 	safety grant program. This appropriation is 
143.25 	available until June 30, 2026. This is a onetime 
143.26 	appropriation.

143.27 	Sec. 11. Laws 2023, chapter 53, article 19, section 4, is amended to read:

143.28	Sec. 4. BUREAU OF MEDIATION SERVICES
 	$
	3,707,000
	$
	3,789,000
	
143.29 	(a) $750,000 each year is for purposes of the 
143.30 	Public Employment Relations Board under 
143.31 	Minnesota Statutes, section 179A.041.
144.1 	(b) $68,000 each year is for grants to area 
144.2 	labor management committees. Grants may 
144.3 	be awarded for a 12-month period beginning 
144.4 	July 1 each year. Any unencumbered balance 
144.5 	remaining at the end of the first year does not 
144.6 	cancel but is available for the second year.
144.7 	(c) $47,000 each year is for rulemaking, 
144.8 	staffing, and other costs associated with peace 
144.9 	officer grievance procedures.

144.10 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2023.

144.11 	ARTICLE 5
144.12 	COMBATIVE SPORTS

144.13 	Section 1. Minnesota Statutes 2023 Supplement, section 341.25, is amended to read:
144.14 	341.25 RULES.
144.15 	(a) The commissioner may adopt rules that include standards for the physical examination 
144.16 	and condition of combatants and referees.
144.17 	(b) The commissioner may adopt other rules necessary to carry out the purposes of this 
144.18 	chapter, including, but not limited to, the conduct of all combative sport contests and their 
144.19 	manner, supervision, time, and place.
144.20 	(c) The most recent version of the Unified Rules of Mixed Martial Arts, as promulgated 
144.21 	by the Association of Boxing Commissions, is incorporated by reference and made a part 
144.22 	of this chapter except as qualified by this chapter and Minnesota Rules, chapter 2202. In 
144.23 	the event of a conflict between this chapter and the Unified Rules, this chapter must govern.
144.24 	(d) The most recent version of the Unified Rules of Boxing, as promulgated by the 
144.25 	Association of Boxing Commissions, is incorporated by reference and made a part of this 
144.26 	chapter except as qualified by this chapter and Minnesota Rules, chapter 2201. In the event 
144.27 	of a conflict between this chapter and the Unified Rules, this chapter must govern.
144.28 	(e) The most recent version of the Unified Rules of Kickboxing and Unified Rules of 
144.29 	Muay Thai, as promulgated by the Association of Boxing Commissions, is are incorporated 
144.30 	by reference and made a part of this chapter except as qualified by this chapter and any 
144.31 	applicable Minnesota Rules. In the event of a conflict between this chapter and the Unified 
144.32 	Rules those rules, this chapter must govern. If a promoter seeks to hold a kickboxing event 
145.1 	governed by a different set of kickboxing rules, the promoter must send the commissioner 
145.2 	a copy of the rules under which the proposed bouts will be conducted at least 45 days before 
145.3 	the event. The commissioner may approve or deny the use of the alternative rules at the 
145.4 	commissioner's discretion. If the alternative rules are approved for an event, this chapter 
145.5 	and any applicable Minnesota Rules, except of those incorporating the Unified Rules of 
145.6 	Kickboxing and Unified Rules of Muay Thai, must govern if there is a conflict between the 
145.7 	rules and Minnesota law.

145.8 	Sec. 2. Minnesota Statutes 2023 Supplement, section 341.28, subdivision 5, is amended 
145.9 	to read:
145.10 		Subd. 5.Regulatory authority; martial arts and amateur boxing.  (a) Unless this 
145.11 	chapter specifically states otherwise, contests or exhibitions for martial arts and amateur 
145.12 	boxing are exempt from the requirements of this chapter and officials at these events are 
145.13 	not required to be licensed under this chapter.
145.14 	(b) Martial arts and amateur boxing contests, unless subject to the exceptions set forth 
145.15 	in subdivision 6 or 7, must be regulated by a nationally recognized organization approved 
145.16 	by the commissioner. The organization must have a set of written standards, procedures, or 
145.17 	rules used to sanction the combative sports it oversees.
145.18 	(c) Any regulatory body overseeing a martial arts or amateur boxing event must submit 
145.19 	bout results to the commissioner within 72 hours after the event. If the regulatory body 
145.20 	issues suspensions, the regulatory body must submit to the commissioner a list of any 
145.21 	suspensions resulting from the event within 72 hours after the event. Regulatory bodies that 
145.22 	oversee combative sports or martial arts contests under subdivision 6 or 7 are not subject 
145.23 	to this paragraph.

145.24 	Sec. 3. Minnesota Statutes 2022, section 341.28, is amended by adding a subdivision to 
145.25 	read:
145.26 		Subd. 7.Regulatory authority; youth competition. Combative sports or martial arts 
145.27 	contests between individuals under the age of 18 years are exempt from the requirements 
145.28 	of this chapter and officials at these events are not required to be licensed under this chapter. 
145.29 	A contest under this subdivision must be regulated by (1) a widely recognized organization 
145.30 	that regularly oversees youth competition, or (2) a local government.

146.1 	Sec. 4. Minnesota Statutes 2022, section 341.29, is amended to read:
146.2 	341.29 JURISDICTION OF COMMISSIONER.
146.3 	The commissioner shall:
146.4 	(1) have sole direction, supervision, regulation, control, and jurisdiction over all 
146.5 	combative sport contests that are held within this state unless a contest is exempt from the 
146.6 	application of this chapter under federal law;
146.7 	(2) have sole control, authority, and jurisdiction over all licenses required by this chapter;
146.8 	(3) grant a license to an applicant if, in the judgment of the commissioner, the financial 
146.9 	responsibility, experience, character, and general fitness of the applicant are consistent with 
146.10 	the public interest, convenience, or necessity and in the best interests of combative sports 
146.11 	and conforms with this chapter and the commissioner's rules;
146.12 	(4) deny, suspend, or revoke a license using the enforcement provisions of section 
146.13 	326B.082, except that the licensing reapplication time frames remain within the sole 
146.14 	discretion of the commissioner; and
146.15 	(5) serve final nonlicensing orders in performing the duties of this chapter which are 
146.16 	subject to the contested case procedures provided in sections 14.57 to 14.69.

146.17 	Sec. 5. Minnesota Statutes 2023 Supplement, section 341.30, subdivision 4, is amended 
146.18 	to read:
146.19 		Subd. 4.Prelicensure requirements. (a) Before the commissioner issues a promoter's 
146.20 	license to an individual, corporation, or other business entity, the applicant shall complete 
146.21 	a licensing application on the Office of Combative Sports website or on forms prescribed 
146.22 	by the commissioner and shall:
146.23 	(1) show on the licensing application the owner or owners of the applicant entity and 
146.24 	the percentage of interest held by each owner holding a 25 percent or more interest in the 
146.25 	applicant;
146.26 	(2) provide the commissioner with a copy of the latest financial statement of the applicant;
146.27 	(3) provide proof, where applicable, of authorization to do business in the state of 
146.28 	Minnesota; and
146.29 	(4) deposit with the commissioner a surety bond in an amount set by the commissioner, 
146.30 	which must not be less than $10,000. The bond shall be executed in favor of this state and 
147.1 	shall be conditioned on the faithful performance by the promoter of the promoter's obligations 
147.2 	under this chapter and the rules adopted under it.
147.3 	(b) Before the commissioner issues a license to a combatant, the applicant shall:
147.4 	(1) submit to the commissioner the results of current medical examinations on forms 
147.5 	prescribed by the commissioner that state that the combatant is cleared to participate in a 
147.6 	combative sport contest. The applicant must undergo and submit the results of the following 
147.7 	medical examinations, which do not exempt a combatant from the requirements in section 
147.8 	341.33:
147.9 	(i) a physical examination performed by a licensed medical doctor, doctor of osteopathic 
147.10 	medicine, advance practice nurse practitioner, or a physician assistant. Physical examinations 
147.11 	are valid for one year from the date of the exam;
147.12 	(ii) an ophthalmological examination performed by an ophthalmologist or optometrist 
147.13 	that includes dilation designed to detect any retinal defects or other damage or a condition 
147.14 	of the eye that could be aggravated by combative sports. Ophthalmological examinations 
147.15 	are valid for one year from the date of the exam;
147.16 	(iii) blood work results for HBsAg (Hepatitis B surface antigen), HCV (Hepatitis C 
147.17 	antibody), and HIV. Blood work results are good for one year from the date blood was 
147.18 	drawn. The commissioner shall not issue a license to an applicant submitting positive test 
147.19 	results for HBsAg, HCV, or HIV; and
147.20 	(iv) other appropriate neurological or physical examinations before any contest, if the 
147.21 	commissioner determines that the examination is desirable to protect the health of the 
147.22 	combatant;
147.23 	(2) complete a licensing application on the Office of Combative Sports website or on 
147.24 	forms prescribed by the commissioner; and
147.25 	(3) provide proof that the applicant is 18 years of age. Acceptable proof is a photo driver's 
147.26 	license, state photo identification card, passport, or birth certificate combined with additional 
147.27 	photo identification.
147.28 	(c) Before the commissioner issues an amateur combatant license to an individual, the 
147.29 	applicant must submit proof of qualifications that includes at a minimum: (1) an applicant's 
147.30 	prior bout history and evidence showing that the applicant has completed at least six months 
147.31 	of training in a combative sport; or (2) a letter of recommendation from a coach or trainer.
147.32 	(d) Before the commissioner issues a professional combatant license to an individual, 
147.33 	the applicant must submit proof of qualifications that includes an applicant's prior bout 
148.1 	history showing the applicant has competed in at least four sanctioned combative sports 
148.2 	contests. If the applicant has not competed in at least four sanctioned combative sports 
148.3 	contests, the commissioner may still grant the applicant a license if the applicant provides 
148.4 	evidence demonstrating that the applicant has sufficient skills and experience in combative 
148.5 	sports or martial arts to compete as a professional combatant.
148.6 	(c) (e) Before the commissioner issues a license to a referee, judge, or timekeeper, the 
148.7 	applicant must submit proof of qualifications that may include certified training from the 
148.8 	Association of Boxing Commissions, licensure with other regulatory bodies, professional 
148.9 	references, or a log of bouts worked.
148.10 	(d) (f) Before the commissioner issues a license to a ringside physician, the applicant 
148.11 	must submit proof that they are licensed to practice medicine in the state of Minnesota and 
148.12 	in good standing.

148.13 	Sec. 6. Minnesota Statutes 2023 Supplement, section 341.321, is amended to read:
148.14 	341.321 FEE SCHEDULE.
148.15 	(a) The fee schedule for professional and amateur licenses issued by the commissioner 
148.16 	is as follows:
148.17 	(1) referees, $25;
148.18 	(2) promoters, $700;
148.19 	(3) judges and knockdown judges, $25;
148.20 	(4) trainers and seconds, $40;
148.21 	(5) timekeepers, $25;
148.22 	(6) professional combatants, $70;
148.23 	(7) amateur combatants, $35; and
148.24 	(8) ringside physicians, $25.
148.25 	All license fees shall be paid no later than the weigh-in prior to the contest. No license may 
148.26 	be issued until all prelicensure requirements in section 341.30 are satisfied and fees are 
148.27 	paid.
148.28 	(b) A promoter or event organizer of an event regulated by the Department of Labor and 
148.29 	Industry must pay, per event, a combative sport contest fee of.
149.1 	(c) If the promoter sells tickets for the event, the event fee is $1,500 per event or four 
149.2 	percent of the gross ticket sales, whichever is greater. The fee must be paid as follows:
149.3 	(1) $500 at the time the combative sport contest is scheduled, which is nonrefundable;
149.4 	(2) $1,000 at the weigh-in prior to the contest;
149.5 	(3) if four percent of the gross ticket sales is greater than $1,500, the balance is due to 
149.6 	the commissioner within 14 days of the completed contest; and
149.7 	(4) the value of all complimentary tickets distributed for an event, to the extent they 
149.8 	exceed five percent of total event attendance, counts toward gross tickets sales for the 
149.9 	purposes of determining a combative sports contest fee. For purposes of this clause, the 
149.10 	lowest advertised ticket price shall be used to calculate the value of complimentary tickets.
149.11 	(d) If the promoter does not sell tickets and receives only a flat payment from a venue 
149.12 	to administer the event, the event fee is $1,500 per event or four percent of the flat payment, 
149.13 	whichever is greater. The fee must be paid as follows:
149.14 	(1) $500 at the time the combative sport contest is scheduled, which is nonrefundable;
149.15 	(2) $1,000 at the weigh-in prior to the contest; and
149.16 	(3) if four percent of the flat payment is greater than $1,500, the balance is due to the 
149.17 	commissioner within 14 days of the completed contest.
149.18 	(c) (e) All fees and penalties collected by the commissioner must be deposited in the 
149.19 	commissioner account in the special revenue fund.

149.20 	Sec. 7. Minnesota Statutes 2023 Supplement, section 341.33, is amended by adding a 
149.21 	subdivision to read:
149.22 		Subd. 3.Medical records. The commissioner may, if the commissioner determines that 
149.23 	doing so would be desirable to protect the health of a combatant, provide the combatant's 
149.24 	medical information collected under this chapter to the physician conducting a prebout exam 
149.25 	under this section or to the ringside physician or physicians assigned to the combatant's 
149.26 	combative sports contest.

149.27 	Sec. 8. [341.352] DATA PRIVACY.
149.28 	All health records collected, created, or maintained under this chapter are private data 
149.29 	on individuals, as defined in section 13.02, subdivision 12.

150.1 	Sec. 9. Minnesota Statutes 2023 Supplement, section 341.355, is amended to read:
150.2 	341.355 CIVIL PENALTIES.
150.3 	When the commissioner finds that a person has violated one or more provisions of any 
150.4 	statute, rule, or order that the commissioner is empowered to regulate, enforce, or issue, the 
150.5 	commissioner may impose, for each violation, a civil penalty of up to $10,000 for each 
150.6 	violation, or a civil penalty that deprives the person of any economic advantage gained by 
150.7 	the violation, or both. The commissioner may also impose these penalties against a person 
150.8 	who has violated section 341.28, subdivision 5, paragraph (b) or (c), or subdivision 7.

150.9 	ARTICLE 6
150.10 	CONSTRUCTION CODES AND LICENSING

150.11 	Section 1. Minnesota Statutes 2023 Supplement, section 326B.106, subdivision 1, is 
150.12 	amended to read:
150.13 		Subdivision 1.Adoption of code. (a) Subject to paragraphs (c) and (d) and sections 
150.14 	326B.101 to 326B.194, the commissioner shall by rule and in consultation with the 
150.15 	Construction Codes Advisory Council establish a code of standards for the construction, 
150.16 	reconstruction, alteration, and repair of buildings, governing matters of structural materials, 
150.17 	design and construction, fire protection, health, sanitation, and safety, including design and 
150.18 	construction standards regarding heat loss control, illumination, and climate control. The 
150.19 	code must also include duties and responsibilities for code administration, including 
150.20 	procedures for administrative action, penalties, and suspension and revocation of certification. 
150.21 	The code must conform insofar as practicable to model building codes generally accepted 
150.22 	and in use throughout the United States, including a code for building conservation. In the 
150.23 	preparation of the code, consideration must be given to the existing statewide specialty 
150.24 	codes presently in use in the state. Model codes with necessary modifications and statewide 
150.25 	specialty codes may be adopted by reference. The code must be based on the application 
150.26 	of scientific principles, approved tests, and professional judgment. To the extent possible, 
150.27 	the code must be adopted in terms of desired results instead of the means of achieving those 
150.28 	results, avoiding wherever possible the incorporation of specifications of particular methods 
150.29 	or materials. To that end the code must encourage the use of new methods and new materials. 
150.30 	Except as otherwise provided in sections 326B.101 to 326B.194, the commissioner shall 
150.31 	administer and enforce the provisions of those sections.
150.32 	(b) The commissioner shall develop rules addressing the plan review fee assessed to 
150.33 	similar buildings without significant modifications including provisions for use of building 
150.34 	systems as specified in the industrial/modular program specified in section 326B.194. 
151.1 	Additional plan review fees associated with similar plans must be based on costs 
151.2 	commensurate with the direct and indirect costs of the service.
151.3 	(c) Beginning with the 2018 edition of the model building codes and every six years 
151.4 	thereafter, the commissioner shall review the new model building codes and adopt the model 
151.5 	codes as amended for use in Minnesota, within two years of the published edition date. The 
151.6 	commissioner may adopt amendments to the building codes prior to the adoption of the 
151.7 	new building codes to advance construction methods, technology, or materials, or, where 
151.8 	necessary to protect the health, safety, and welfare of the public, or to improve the efficiency 
151.9 	or the use of a building.
151.10 	(d) Notwithstanding paragraph (c), the commissioner shall act on each new model 
151.11 	residential energy code and the new model commercial energy code in accordance with 
151.12 	federal law for which the United States Department of Energy has issued an affirmative 
151.13 	determination in compliance with United States Code, title 42, section 6833. The 
151.14 	commissioner may adopt amendments prior to adoption of the new energy codes, as amended 
151.15 	for use in Minnesota, to advance construction methods, technology, or materials, or, where 
151.16 	necessary to protect the health, safety, and welfare of the public, or to improve the efficiency 
151.17 	or use of a building.
151.18 	(e) Beginning in 2024, the commissioner shall act on the new model commercial energy 
151.19 	code by adopting each new published edition of ASHRAE 90.1 or a more efficient standard. 
151.20 	The commercial energy code in effect in 2036 and thereafter must achieve an 80 percent 
151.21 	reduction in annual net energy consumption or greater, using the ASHRAE 90.1-2004 as a 
151.22 	baseline. The commissioner shall adopt commercial energy codes from 2024 to 2036 that 
151.23 	incrementally move toward achieving the 80 percent reduction in annual net energy 
151.24 	consumption. By January 15 of the year following each new code adoption, the commissioner 
151.25 	shall make a report on progress under this section to the legislative committees with 
151.26 	jurisdiction over the energy code.
151.27 	(f) Nothing in this section shall be interpreted to limit the ability of a public utility to 
151.28 	offer code support programs, or to claim energy savings resulting from such programs, 
151.29 	through its energy conservation and optimization plans approved by the commissioner of 
151.30 	commerce under section 216B.241 or an energy conservation and optimization plan filed 
151.31 	by a consumer-owned utility under section 216B.2403.
151.32 	(g) Beginning in 2026, the commissioner shall act on the new model residential energy 
151.33 	code by adopting each new published edition of the International Energy Conservation Code 
151.34 	or a more efficient standard. The residential energy code in effect in 2038 and thereafter 
152.1 	must achieve a 70 percent reduction in annual net energy consumption or greater, using the 
152.2 	2006 International Energy Conservation Code State Level Residential Codes Energy Use 
152.3 	Index for Minnesota, as published by the United States Department of Energy's Building 
152.4 	Energy Codes Program, as a baseline. The commissioner shall adopt residential energy 
152.5 	codes from 2026 to 2038 that incrementally move toward achieving the 70 percent reduction 
152.6 	in annual net energy consumption. By January 15 of the year following each new code 
152.7 	adoption, the commissioner shall submit a report on progress under this section to the 
152.8 	legislative committees with jurisdiction over the energy code.

152.9 	Sec. 2. Minnesota Statutes 2022, section 326B.89, subdivision 5, is amended to read:
152.10 		Subd. 5.Payment limitations.  The commissioner shall not pay compensation from the 
152.11 	fund to an owner or a lessee in an amount greater than $75,000 $100,000 per licensee. The 
152.12 	commissioner shall not pay compensation from the fund to owners and lessees in an amount 
152.13 	that totals more than $550,000 per licensee. The commissioner shall only pay compensation 
152.14 	from the fund for a final judgment that is based on a contract directly between the licensee 
152.15 	and the homeowner or lessee that was entered into prior to the cause of action and that 
152.16 	requires licensure as a residential building contractor or residential remodeler.

152.17 	EFFECTIVE DATE. This section is effective July 1, 2024.

152.18 	ARTICLE 7
152.19 	BUREAU OF MEDIATION SERVICES

152.20 	Section 1. Minnesota Statutes 2022, section 626.892, subdivision 10, is amended to read:
152.21 		Subd. 10.Training. (a) A person appointed to the arbitrator roster under this section 
152.22 	must complete training as required by the commissioner during the person's appointment. 
152.23 	At a minimum, an initial training must include:
152.24 	(1) at least six hours on the topics of cultural competency, racism, implicit bias, and 
152.25 	recognizing and valuing community diversity and cultural differences; and
152.26 	(2) at least six hours on topics related to the daily experience of peace officers, which 
152.27 	may include ride-alongs with on-duty officers or other activities that provide exposure to 
152.28 	the environments, choices, and judgments required of officers in the field.
152.29 	(b) The commissioner may adopt rules establishing training requirements consistent 
152.30 	with this subdivision.
152.31 	(b) An arbitrator appointed to the roster of arbitrators in 2020 must complete the required 
152.32 	initial training by July 1, 2021. (c) An arbitrator appointed to the roster of arbitrators after 
153.1 	2020 must complete the required initial training within six months of the arbitrator's 
153.2 	appointment.
153.3 	(c) (d) The Bureau of Mediation Services must pay for all costs associated with the 
153.4 	required training must be borne by the arbitrator.

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

153.6 	Sec. 2. REPEALER.
 153.7 	(a) Minnesota Statutes 2022, sections 179.81; 179.82; 179.83, subdivision 1; 179.84, 
153.8 	subdivision 1; and 179.85, are repealed.
153.9 	(b) Minnesota Rules, parts 5520.0100; 5520.0110; 5520.0120, subparts 1, 2, 3, 4, 5, 6, 
153.10 	and 7; 5520.0200; 5520.0250, subparts 1, 2, and 4; 5520.0300; 5520.0500, subparts 1, 2, 
153.11 	3, 4, 5, and 6; 5520.0520; 5520.0540; 5520.0560; 5520.0600; 5520.0620; 5520.0700; 
153.12 	5520.0710; and 5520.0800, are repealed.

153.13 	ARTICLE 8
153.14 	PUBLIC EMPLOYEE LABOR RELATIONS (PELRA)

153.15 	Section 1. Minnesota Statutes 2023 Supplement, section 13.43, subdivision 6, is amended 
153.16 	to read:
153.17 		Subd. 6.Access by labor organizations, Bureau of Mediation Services, Public 
153.18 	Employment Relations Board. (a) Notwithstanding classification by any other provision 
153.19 	of this chapter upon request from an exclusive representative, personnel data must be 
153.20 	disseminated to labor organizations and the Public Employment Relations Board to the 
153.21 	extent necessary to conduct elections, investigate and process grievances, and implement 
153.22 	the provisions of chapters 179 and 179A.
153.23 	(b) Personnel data shall be disseminated to labor organizations, the Public Employment 
153.24 	Relations Board, and the Bureau of Mediation Services to the extent the dissemination is 
153.25 	ordered or authorized by the commissioner of the Bureau of Mediation Services or the 
153.26 	Public Employment Relations Board or its employees or agents. Employee Social Security 
153.27 	numbers are not necessary to implement the provisions of chapters 179 and 179A.
153.28 	(b) (c) Personnel data described under section 179A.07, subdivision 8, must be 
153.29 	disseminated to an exclusive representative under the terms of that subdivision.
154.1 	(c) (d) An employer who disseminates personnel data to a labor organization pursuant 
154.2 	to this subdivision shall not be subject to liability under section 13.08. Nothing in this 
154.3 	paragraph shall impair or limit any remedies available under section 325E.61.
154.4 	(d) (e) The home addresses, nonemployer issued phone numbers and email addresses, 
154.5 	dates of birth, and emails or other communications between exclusive representatives and 
154.6 	their members, prospective members, and nonmembers are private data on individuals.

154.7 	Sec. 2. Minnesota Statutes 2023 Supplement, section 179A.03, subdivision 14, is amended 
154.8 	to read:
154.9 		Subd. 14.Public employee or employee. (a) "Public employee" or "employee" means 
154.10 	any person appointed or employed by a public employer except:
154.11 	(1) elected public officials;
154.12 	(2) election officers;
154.13 	(3) commissioned or enlisted personnel of the Minnesota National Guard;
154.14 	(4) emergency employees who are employed for emergency work caused by natural 
154.15 	disaster;
154.16 	(5) part-time employees whose service does not exceed the lesser of 14 hours per week 
154.17 	or 35 percent of the normal work week in the employee's appropriate unit;
154.18 	(6) employees, other than those working in a school as a paraprofessional or other 
154.19 	noninstructional position, whose positions are basically temporary or seasonal in character 
154.20 	and: (i) are not for more than 67 working days in any calendar year; (ii) are not working for 
154.21 	a Minnesota school district or charter school; or (iii) are not for more than 100 working 
154.22 	days in any calendar year and the employees are.
154.23 	(7) full-time students under the age of 22, are full-time students enrolled in a nonprofit 
154.24 	or public educational institution prior to being hired by the employer, excluding employment 
154.25 	by the Board of Regents of the University of Minnesota, whose positions are temporary or 
154.26 	seasonal in character and are not for more than 100 working days in any calendar year, and
154.27 	who have indicated, either in an application for employment or by being enrolled at an 
154.28 	educational institution for the next academic year or term, an intention to continue as students 
154.29 	during or after their temporary employment;
154.30 	(7) (8) employees providing services for not more than two consecutive quarters to the 
154.31 	Board of Trustees of the Minnesota State Colleges and Universities under the terms of a 
154.32 	professional or technical services contract as defined in section 16C.08, subdivision 1;
155.1 	(8) (9) employees of charitable hospitals as defined by section 179.35, subdivision 3, 
155.2 	except that employees of charitable hospitals as defined by section 179.35, subdivision 3, 
155.3 	are public employees for purposes of sections 179A.051, 179A.052, and 179A.13;
155.4 	(9) (10) full-time undergraduate students employed by the school, excluding employment 
155.5 	by the Board of Regents of the University of Minnesota, which they attend under a 
155.6 	work-study program or in connection with the receipt of financial aid, irrespective of number 
155.7 	of hours of service per week;
155.8 	(10) (11) an individual who is employed for less than 300 hours in a fiscal year as an 
155.9 	instructor in an adult vocational education program;
155.10 	(11) (12) with respect to court employees:
155.11 	(i) personal secretaries to judges;
155.12 	(ii) law clerks;
155.13 	(iii) managerial employees;
155.14 	(iv) confidential employees; and
155.15 	(v) supervisory employees; or
155.16 	(12) (13) with respect to employees of Hennepin Healthcare System, Inc., managerial, 
155.17 	supervisory, and confidential employees.
155.18 	(b) The following individuals are public employees regardless of the exclusions of 
155.19 	paragraph (a), clauses (5) to (7) (8) and (10):
155.20 	(1) an employee hired by a school district or the Board of Trustees of the Minnesota 
155.21 	State Colleges and Universities except at the university established in the Twin Cities 
155.22 	metropolitan area under section 136F.10 or for community services or community education 
155.23 	instruction offered on a noncredit basis: (i) to replace an absent teacher or faculty member 
155.24 	who is a public employee, where the replacement employee is employed more than 30 
155.25 	working days as a replacement for that teacher or faculty member; or (ii) to take a teaching 
155.26 	position created due to increased enrollment, curriculum expansion, courses which are a 
155.27 	part of the curriculum whether offered annually or not, or other appropriate reasons;
155.28 	(2) an employee hired for a position under paragraph (a), clause (6), item (i), if that same 
155.29 	position has already been filled under paragraph (a), clause (6), item (i), in the same calendar 
155.30 	year and the cumulative number of days worked in that same position by all employees 
155.31 	exceeds 67 calendar days in that year. For the purpose of this paragraph, "same position" 
156.1 	includes a substantially equivalent position if it is not the same position solely due to a 
156.2 	change in the classification or title of the position;
156.3 	(3) an early childhood family education teacher employed by a school district; and
156.4 	(4) an individual hired by the Board of Trustees of the Minnesota State Colleges and 
156.5 	Universities or the University of Minnesota as the instructor of record to teach (i) one class 
156.6 	for more than three credits in a fiscal year, or (ii) two or more credit-bearing classes in a 
156.7 	fiscal year.; and
156.8 	(5) an individual who: (i) is paid by the Board of Regents of the University of Minnesota 
156.9 	for work performed at the direction of the university or any of its employees or contractors; 
156.10 	and (ii) is enrolled in three or more university credit-bearing classes or one semester as a 
156.11 	full-time student or postdoctoral fellow during the fiscal year in which the work is performed. 
156.12 	For purposes of this section, work paid by the university includes but is not limited to work 
156.13 	that is required as a condition of receiving a stipend or tuition benefit, whether or not the 
156.14 	individual also receives educational benefit from performing that work. Individuals who 
156.15 	perform supervisory functions in regard to any individuals who are employees under this 
156.16 	clause are not considered supervisory employees for the purpose of section 179A.06, 
156.17 	subdivision 2.

156.18 	Sec. 3. Minnesota Statutes 2023 Supplement, section 179A.03, subdivision 18, is amended 
156.19 	to read:
156.20 		Subd. 18.Teacher. "Teacher" means any public employee other than a superintendent 
156.21 	or assistant superintendent, principal, assistant principal, or a supervisory or confidential 
156.22 	employee, employed by a school district:
156.23 	(1) in a position for which the person must be licensed by the Professional Educator 
156.24 	Licensing and Standards Board or the commissioner of education;
156.25 	(2) in a position as a physical therapist, occupational therapist, art therapist, music 
156.26 	therapist, or audiologist; or
156.27 	(3) in a position creating and delivering instruction to children in a preschool, school 
156.28 	readiness, school readiness plus, or prekindergarten program or other school district or 
156.29 	charter school-based early education program, except that an employeeemployees in a 
156.30 	bargaining unit certified before January 1, 2023, may remain in a bargaining unit that does 
156.31 	not include teachers unless an exclusive representative files a petition for a unit clarification 
156.32 	on the status of a preschool, school readiness, school readiness plus, or prekindergarten 
157.1 	program or other school district or charter school-based early education program position
157.2 	or to transfer exclusive representative status.

157.3 	Sec. 4. Minnesota Statutes 2022, section 179A.041, subdivision 2, is amended to read:
157.4 		Subd. 2.Alternate members. (a) The appointing authorities shall appoint alternate 
157.5 	members to serve only in the case event of a member having a conflict of interest or being 
157.6 	unavailable for a meeting under subdivision 9, as follows:
157.7 	(1) one alternate, appointed by the governor, who is an officer or employee of an exclusive 
157.8 	representative of public employees, to serve as an alternate to the member appointed by the 
157.9 	governor who is an officer or employee of an exclusive representative of public employees. 
157.10 	This alternate must not be an officer or employee of the same exclusive representative of 
157.11 	public employees as the member for whom the alternate serves;
157.12 	(2) one alternate, appointed by the governor, who is a representative of public employers, 
157.13 	to serve as an alternate to the member appointed by the governor who is a representative of 
157.14 	public employers. This alternate must not represent the same public employer as the member 
157.15 	for whom the alternate serves; and
157.16 	(3) one alternate, appointed by the member who is an officer or employee of an exclusive 
157.17 	representative of public employees and the member who is a representative of public 
157.18 	employers, who is not an officer or employee of an exclusive representative of public 
157.19 	employees, or a representative of a public employer, to serve as an alternate for the member 
157.20 	that represents the public at large.
157.21 	(b) Each alternate member shall serve a term that is coterminous with the term of the 
157.22 	member for whom the alternate member serves as an alternate.

157.23 	Sec. 5. Minnesota Statutes 2023 Supplement, section 179A.041, subdivision 10, is amended 
157.24 	to read:
157.25 		Subd. 10.Open Meeting Law; exceptions. Chapter 13D does not apply to meetings of 
157.26 	the a board meeting when itthe board is:
157.27 	(1) deliberating on the merits of an unfair labor practice charges charge under sections 
157.28 	179.11, 179.12, and 179A.13;
157.29 	(2) reviewing a hearing officer's recommended decision and order of a hearing officer
157.30 	under section 179A.13; or
158.1 	(3) reviewing decisions of the a commissioner of the Bureau of Mediation Services 
158.2 	relating todecision on an unfair labor practices practice under section 179A.12, subdivision 
158.3 	11.

158.4 	Sec. 6. Minnesota Statutes 2023 Supplement, section 179A.06, subdivision 6, is amended 
158.5 	to read:
158.6 		Subd. 6.Payroll deduction, authorization, and remittance. (a) Public employees have 
158.7 	the right to A public employee may request and be allowed payroll deduction for the 
158.8 	exclusive representative that represents the employee's position and the its associated political 
158.9 	fund associated with the exclusive representative and registered pursuant to under section 
158.10 	10A.12. If no exclusive representative represents an employee's position, the public employee 
158.11 	may request payroll deduction for the organization of the employee's choice. A public 
158.12 	employer must provide payroll deduction according to any public employee's request under 
158.13 	this paragraph.
158.14 	(b) A public employer must rely on a certification from any an exclusive representative 
158.15 	requesting remittance of a deduction that the organization has and will maintain an 
158.16 	authorization, signed, either by hand or electronically according to section 325L.02, paragraph 
158.17 	(h), by the public employee from whose salary or wages the deduction is to be made, which 
158.18 	may include an electronic signature by the public employee as defined in section 325L.02, 
158.19 	paragraph (h). An exclusive representative making such a certification must not be is not
158.20 	required to provide the public employer a copy of the authorization unless a dispute arises 
158.21 	about the authorization's existence or terms of the authorization. The exclusive representative 
158.22 	must indemnify the public employer for any successful claims made by the employee for 
158.23 	unauthorized deductions in reliance on the certification.
158.24 	(b) (c) A duespayroll deduction authorization remains in effect is effective until the
158.25 	exclusive representative notifies the employer receives notice from the exclusive 
158.26 	representative that a public employee has changed or canceled their the employee's
158.27 	authorization in writing in accordance with the terms of the original authorizing document, 
158.28 	and authorization. When determining whether deductions have been properly changed or 
158.29 	canceled, a public employer must rely on information from the exclusive representative 
158.30 	receiving remittance of the deduction regarding whether the deductions have been properly 
158.31 	changed or canceled. The exclusive representative must indemnify the public employer, 
158.32 	including any reasonable attorney fees and litigation costs, for any successful claims made 
158.33 	by the employee for unauthorized deductions made in reliance on such information.
158.34 	(c) (d) Deduction authorization under this section is:
159.1 	(1) independent from the public employee's membership status in the organization to 
159.2 	which payment is remitted; and is
159.3 	(2) effective regardless of whether a collective bargaining agreement authorizes the 
159.4 	deduction.
159.5 	(d) Employers (e) An employer must commence:
159.6 	(1) begin deductions within 30 days of notice of authorization from the after an exclusive 
159.7 	representative submits a certification under paragraph (b); and must
159.8 	(2) remit the deductions to the exclusive representative within 30 days of the deduction. 
159.9 	The failure of an employer to comply with the provisions of this paragraph shall be an unfair 
159.10 	labor practice under section 179A.13, the relief for which shall be reimbursement by the 
159.11 	employer of deductions that should have been made or remitted based on a valid authorization 
159.12 	given by the employee or employees.
159.13 	(e) In the absence of an exclusive representative, public employees have the right to 
159.14 	request and be allowed payroll deduction for the organization of their choice.
159.15 	(f) An exclusive representative must indemnify a public employer:
159.16 	(1) for any successful employee claim for unauthorized employer deductions made by 
159.17 	relying on an exclusive representative's certification under paragraph (b); and
159.18 	(2) for any successful employee claim for unauthorized employer deductions made by 
159.19 	relying on information for changing or canceling deductions under paragraph (c), with 
159.20 	indemnification including any reasonable attorney fees and litigation costs.
159.21 	(f) (g) Any dispute under this subdivision must be resolved through an unfair labor 
159.22 	practice proceeding under section 179A.13. It is an unfair labor practice if an employer fails 
159.23 	to comply with paragraph (e), and the employer must reimburse deductions that should have 
159.24 	been made or remitted based on a valid authorization given by the employee or employees.

159.25 	Sec. 7. Minnesota Statutes 2023 Supplement, section 179A.07, subdivision 8, is amended 
159.26 	to read:
159.27 		Subd. 8.Bargaining unit information. (a) Within 20 calendar days from the date of 
159.28 	hire of after a bargaining unit employee is hired, a public employer must provide the 
159.29 	following contact information on the employee to an the unit's exclusive representative or 
159.30 	its affiliate in an Excel file format or other format agreed to by the exclusive representative:
159.31 	(1) name;
160.1 	(2) job title;
160.2 	(3) worksite location, including location within in a facility when appropriate;
160.3 	(4) home address;
160.4 	(5) work telephone number;
160.5 	(6) home and personal cell phone numbers on file with the public employer;
160.6 	(7) date of hire; and
160.7 	(8) work email address and personal email address on file with the public employer.
160.8 	(b) Every 120 calendar days beginning on January 1, 2024, a public employer must 
160.9 	provide to an a bargaining unit's exclusive representative in an Excel file or similar format 
160.10 	agreed to by the exclusive representative the following information under paragraph (a) for 
160.11 	all bargaining unit employees: name; job title; worksite location, including location within 
160.12 	a facility when appropriate; home address; work telephone number; home and personal cell 
160.13 	phone numbers on file with the public employer; date of hire; and work email address and 
160.14 	personal email address on file with the public employer.
160.15 	(c) A public employer must notify an exclusive representative within 20 calendar days 
160.16 	of the separation of If a bargaining unit employee separates from employment or transfer
160.17 	transfers out of the bargaining unit of a bargaining unit employee, the employee's public 
160.18 	employer must notify the employee's exclusive representative within 20 calendar days after 
160.19 	the separation or transfer, including whether the unit departure was due to a transfer, 
160.20 	promotion, demotion, discharge, resignation, or retirement.

160.21 	Sec. 8. Minnesota Statutes 2023 Supplement, section 179A.07, subdivision 9, is amended 
160.22 	to read:
160.23 		Subd. 9.Access. (a) A public employer must allow an exclusive representative or the 
160.24 	representative's agent to meet in person with a newly hired employees, without charge to 
160.25 	the pay or leave time of the employees, for 30 minutes, employee within 30 calendar days 
160.26 	from the date of hire, during new employee orientations or, if the employer does not conduct 
160.27 	new employee orientations, at individual or group meetings arranged by the employer in 
160.28 	coordination with the exclusive representative or the representative's agent during the newly 
160.29 	hired employees' regular working hours. For an orientation or meeting under this paragraph, 
160.30 	an employer must allow the employee and exclusive representative up to 30 minutes to meet 
160.31 	and must not charge the employee's pay or leave time during the orientation or meeting, or 
160.32 	the pay or leave time of an employee of the public employer acting as an agent of the 
161.1 	exclusive representative using time off under subdivision 6. An orientation or meeting may 
161.2 	be held virtually or for longer than 30 minutes only by mutual agreement of the employer 
161.3 	and exclusive representative.
161.4 	(b) An exclusive representative shall must receive no less than at least ten days' notice 
161.5 	in advance of an orientation, except that but a shorter notice may be provided where if there 
161.6 	is an urgent need critical to the employer's operations of the public employer that was not 
161.7 	reasonably foreseeable. Notice of and attendance at new employee orientations and other 
161.8 	meetings under this paragraph must be and paragraph (a) are limited to the public employer,:
161.9 	(1) the employees,;
161.10 	(2) the exclusive representative, and;
161.11 	(3) any vendor contracted to provide a service for purposes of the meeting. Meetings 
161.12 	may be held virtually or for longer than 30 minutes; and
161.13 	(4) the public employer or its designee, who may attend only by mutual agreement of 
161.14 	the public employer and exclusive representative.
161.15 	(b) (c) A public employer must allow an exclusive representative to communicate with 
161.16 	bargaining unit members using their employer-issued email addresses regarding by email 
161.17 	on:
161.18 	(1) collective bargaining,;
161.19 	(2) the administration of collective bargaining agreements,;
161.20 	(3) the investigation of grievances, and other workplace-related complaints and issues,;
161.21 	and
161.22 	(4) internal matters involving the governance or business of the exclusive representative, 
161.23 	consistent with the employer's generally applicable technology use policies.
161.24 	(d) An exclusive representative may communicate with bargaining unit members under 
161.25 	paragraph (c) via the members' employer-issued email addresses, but the communication 
161.26 	must be consistent with the employer's generally applicable technology use policies.
161.27 	(c) (e) A public employer must allow an exclusive representative to meet with bargaining 
161.28 	unit members in facilities owned or leased by the public employer regarding to communicate 
161.29 	on:
161.30 	(1) collective bargaining,;
161.31 	(2) the administration of collective bargaining agreements,;
162.1 	(3) the investigation of grievances and other workplace-related complaints and issues,;
162.2 	and
162.3 	(4) internal matters involving the governance or business of the exclusive representative, 
162.4 	provided the use does not interfere with governmental operations and the exclusive 
162.5 	representative complies with worksite security protocols established by the public employer. 
162.6 	Meetings conducted.
162.7 	(f) The following applies for a meeting under paragraph (e):
162.8 	(1) a meeting cannot interfere with government operations;
162.9 	(2) the exclusive representative must comply with employer-established worksite security 
162.10 	protocols;
162.11 	(3) a meeting in a government buildings pursuant to this paragraph must not building 
162.12 	cannot be for the purpose of supporting or opposing any candidate for partisan political 
162.13 	office or for the purpose of distributing literature or information regarding on partisan 
162.14 	elections.; and
162.15 	(4) an exclusive representative conducting a meeting in a government building or other 
162.16 	government facility pursuant to this subdivision may be charged for maintenance, security, 
162.17 	and other costs related to the use of using the government building or facility that would 
162.18 	not otherwise be incurred by the government entity.

162.19 	Sec. 9. Minnesota Statutes 2022, section 179A.09, is amended by adding a subdivision to 
162.20 	read:
162.21 		Subd. 4.Unit mergers. At any time upon the request of an exclusive representative for 
162.22 	bargaining units other than those defined in section 179A.10, subdivision 2, the commissioner 
162.23 	must designate as a single unit two or more bargaining units represented by the exclusive 
162.24 	representative, subject to subdivision 2 as well as any other statutory bargaining unit 
162.25 	designation.

162.26 	Sec. 10. Minnesota Statutes 2022, section 179A.09, is amended by adding a subdivision 
162.27 	to read:
162.28 		Subd. 5.Position classifications. For the purpose of determining whether a new position 
162.29 	should be included in an existing bargaining unit, the position shall be analyzed with respect 
162.30 	to its assigned duties, without regard to title or telework status.

163.1 	Sec. 11. Minnesota Statutes 2023 Supplement, section 179A.10, subdivision 2, is amended 
163.2 	to read:
163.3 		Subd. 2.State employees. (a) Unclassified employees, unless otherwise excluded, are 
163.4 	included within the units which that include the classifications to which they are assigned 
163.5 	for purposes of compensation. Supervisory employees shall only can be assigned only to 
163.6 	units unit 12 and or 16. The following units are the appropriate units of executive branch 
163.7 	state employees:
163.8 	(1) law enforcement unit;
163.9 	(2) craft, maintenance, and labor unit;
163.10 	(3) service unit;
163.11 	(4) health care nonprofessional unit;
163.12 	(5) health care professional unit;
163.13 	(6) clerical and office unit;
163.14 	(7) technical unit;
163.15 	(8) correctional guards unit;
163.16 	(9) state university instructional unit;
163.17 	(10) state college instructional unit;
163.18 	(11) state university administrative unit;
163.19 	(12) professional engineering unit;
163.20 	(13) health treatment unit;
163.21 	(14) general professional unit;
163.22 	(15) professional state residential instructional unit;
163.23 	(16) supervisory employees unit;
163.24 	(17) public safety radio communications operator unit;
163.25 	(18) licensed peace officer special unit; and
163.26 	(19) licensed peace officer leader unit.
163.27 	Each unit consists of the classifications or positions assigned to it in the schedule of 
163.28 	state employee job classification and positions maintained by the commissioner. The 
164.1 	commissioner may only make changes in the schedule in existence on the day prior to 
164.2 	August 1, 1984, as required by law or as provided in subdivision 4.
164.3 	(b) The following positions are included in the licensed peace officer special unit:
164.4 	(1) State Patrol lieutenant;
164.5 	(2) NR district supervisor - enforcement;
164.6 	(3) assistant special agent in charge;
164.7 	(4) corrections investigation assistant director 2;
164.8 	(5) corrections investigation supervisor; and
164.9 	(6) commerce supervisor special agent.
164.10 	(c) The following positions are included in the licensed peace officer leader unit:
164.11 	(1) State Patrol captain;
164.12 	(2) NR program manager 2 enforcement; and
164.13 	(3) special agent in charge.
164.14 	(d) Each unit consists of the classifications or positions assigned to it in the schedule of 
164.15 	state employee job classification and positions maintained by the commissioner. The 
164.16 	commissioner may make changes in the schedule in existence on the day before August 1, 
164.17 	1984, only:
164.18 	(1) as required by law; or
164.19 	(2) as provided in subdivision 4.

164.20 	Sec. 12. Minnesota Statutes 2023 Supplement, section 179A.12, subdivision 2a, is amended 
164.21 	to read:
164.22 		Subd. 2a.Majority verification procedure. (a) Notwithstanding any other provision 
164.23 	of this section, An employee organization may file a petition with the commissioner 
164.24 	requesting certification as the exclusive representative of an a proposed appropriate unit 
164.25 	based on a verification that for which there is no currently certified exclusive representative. 
164.26 	The petition must include over 50 percent of the employees in the proposed appropriate 
164.27 	unit who wish to be represented by the petitioner organization. The commissioner shall 
164.28 	require dated representation authorization signatures of affected employees as verification 
164.29 	of the employee organization's claim of majority status.
165.1 	(b) Upon receipt of an employee organization's petition, accompanied by employee 
165.2 	authorization signatures under this subdivision, the commissioner shall investigate the 
165.3 	petition. If the commissioner determines that over 50 percent of the employees in an the
165.4 	appropriate unit have provided authorization signatures designating the petitioning employee 
165.5 	organization specified in the petition as their exclusive representative, the commissioner 
165.6 	shall not order an election but shall must certify the employee organization as the employees' 
165.7 	exclusive representative without ordering an election under this section.

165.8 	Sec. 13. Minnesota Statutes 2022, section 179A.12, subdivision 5, is amended to read:
165.9 		Subd. 5.Commissioner to investigate. The commissioner shall, Upon receipt of an 
165.10 	employee organization's receiving a petition to the commissioner under subdivision 3 1a 
165.11 	or 2a, the commissioner must:
165.12 	(1) investigate to determine if sufficient evidence of a question of representation exists;
165.13 	and
165.14 	(2) hold hearings necessary to determine the appropriate unit and other matters necessary 
165.15 	to determine the representation rights of the affected employees and employer.

165.16 	Sec. 14. Minnesota Statutes 2023 Supplement, section 179A.12, subdivision 6, is amended 
165.17 	to read:
165.18 		Subd. 6.Authorization signatures. In (a) When determining the numerical status of 
165.19 	an employee organization for purposes of this section, the commissioner shall must require 
165.20 	a dated representation authorization signatures of affected employees signature of each 
165.21 	affected employee as verification of the statements contained in the joint request or petitions
165.22 	petition. These
165.23 	(b) An authorization signatures shall be signature is privileged and confidential 
165.24 	information available to the commissioner only. An electronic signatures signature, as 
165.25 	defined in section 325L.02, paragraph (h), shall be is valid as an authorization signatures
165.26 	signature.
165.27 	(c) An authorization signatures shall be signature is valid for a period of one year 
165.28 	following the signature date of signature.

166.1 	Sec. 15. Minnesota Statutes 2023 Supplement, section 179A.12, subdivision 11, is amended 
166.2 	to read:
166.3 		Subd. 11.Unfair labor practices. The commissioner may void the result of an election 
166.4 	or majority verification procedure and order a new election or procedure if the commissioner 
166.5 	finds that one of the following:
166.6 	(1) there was an unfair labor practice that:
166.7 	(i) was committed by an employer or, a representative candidate or, an employee, or a 
166.8 	group of employees,; and that the unfair labor practice
166.9 	(ii) affected the result of an the election or the majority verification procedure pursuant 
166.10 	to subdivision 2a,; or that
166.11 	(2) procedural or other irregularities in the conduct of the election or majority verification 
166.12 	procedure may have substantially affected its the results, the commissioner may void the 
166.13 	result and order a new election or majority verification procedure.

166.14 	Sec. 16. Minnesota Statutes 2022, section 179A.13, subdivision 1, is amended to read:
166.15 		Subdivision 1.Actions. (a) The practices specified in this section are unfair labor 
166.16 	practices. Any employee, employer, employee or employer organization, exclusive 
166.17 	representative, or any other person or organization aggrieved by an unfair labor practice as 
166.18 	defined in this section may file an unfair labor practice charge with the board.
166.19 	(b) Whenever it is charged that any party has engaged in or is engaging in any unfair 
166.20 	labor practice, an investigator designated by the board shall promptly conduct an investigation 
166.21 	of the charge. Unless after the investigation the board finds that the charge has no reasonable 
166.22 	basis in law or fact, the board shall promptly issue a complaint and cause to be served upon 
166.23 	the party a complaint stating the charges, accompanied by a notice of hearing before a 
166.24 	qualified hearing officer designated by the board at the offices of the bureau or other location 
166.25 	as the board deems appropriate, not less than five days nor more than 20 days more than 
166.26 	30 days after serving the complaint absent mutual agreement of the parties, provided that 
166.27 	no complaint shall be issued based upon any unfair labor practice occurring more than six 
166.28 	months prior to the filing of a charge. A complaint issued under this subdivision may be 
166.29 	amended by the board at any time prior to the issuance of an order based thereon. The party 
166.30 	who is the subject of the complaint has the right to file an answer to the original or amended 
166.31 	complaint prior to hearing and to appear in person or by a representative and give testimony 
166.32 	at the place and time fixed in the complaint. In the discretion of the hearing officer conducting 
166.33 	the hearing or the board, any other party may be allowed to intervene in the proceeding and 
167.1 	to present testimony. The board or designated hearing officers shall not be bound by the 
167.2 	rules of evidence applicable to courts, except as to the rules of privilege recognized by law.
167.3 	(c) Designated investigators must conduct the investigation of charges.
167.4 	(d) Hearing officers must be licensed to practice law in the state of Minnesota have a 
167.5 	juris doctor and must conduct the hearings and issue recommended decisions and orders.
167.6 	(e) The board or its designees shall have the power to issue subpoenas and administer 
167.7 	oaths. If any party willfully fails or neglects to appear or testify or to produce books, papers, 
167.8 	and records pursuant to the issuance of a subpoena, the board may apply to a court of 
167.9 	competent jurisdiction to request that the party be ordered to appear to testify or produce 
167.10 	the requested evidence.
167.11 	(f) A full and complete record shall be kept of all proceedings before the board or 
167.12 	designated hearing officer and shall be transcribed by a reporter appointed by the board.
167.13 	(g) The party on whom the burden of proof rests shall be required to sustain the burden 
167.14 	by a preponderance of the evidence.
167.15 	(h) At any time prior to the close of a hearing, the parties may by mutual agreement 
167.16 	request referral to mediation, at which time the commissioner shall appoint a mediator, and 
167.17 	the hearing shall be suspended pending the results of the mediation.
167.18 	(i) If, upon a preponderance of the evidence taken, the hearing officer determines that 
167.19 	any party named in the charge has engaged in or is engaging in an unfair labor practice, 
167.20 	then a recommended decision and order shall be issued stating findings of fact and 
167.21 	conclusions, and requiring the party to cease and desist from the unfair labor practice, to 
167.22 	post a cease-and-desist notice in the workplace, and ordering any appropriate relief to 
167.23 	effectuate the policies of this section, including but not limited to reinstatement, back pay, 
167.24 	and any other remedies that make a charging party whole. If back pay is awarded, the award 
167.25 	must include interest at the rate of seven percent per annum. The order further may require 
167.26 	the party to make reports from time to time, and demonstrate the extent to which the party 
167.27 	has complied with the order.
167.28 	(j) If there is no preponderance of evidence that the party named in the charge has 
167.29 	engaged in or is engaging in the unfair labor practice, then the hearing officer shall issue a 
167.30 	recommended decision and order stating findings of fact and dismissing the complaint.
167.31 	(k) Parties may file exceptions to the hearing officer's recommended decision and order 
167.32 	with the board no later than 30 days after service of the recommended decision and order. 
167.33 	The board shall review the recommended decision and order upon timely filing of exceptions 
168.1 	or upon its own motion. If no timely exceptions have been filed, the parties must be deemed 
168.2 	to have waived their exceptions. Unless the board reviews the recommended decision and 
168.3 	order upon its own motion, it must not be legal precedent and must be final and binding 
168.4 	only on the parties to the proceeding as issued in an order issued by the board. If the board 
168.5 	does review the recommended decision and order, the board may adopt all, part, or none of 
168.6 	the recommended decision and order, depending on the extent to which it is consistent with 
168.7 	the record and applicable laws. The board shall issue and serve on all parties its decision 
168.8 	and order. The board shall retain jurisdiction over the case to ensure the parties' compliance 
168.9 	with the board's order. Unless overturned by the board, the parties must comply with the 
168.10 	recommended decision and order.
168.11 	(l) Until the record has been filed in the court of appeals or district court, the board at 
168.12 	any time, upon reasonable notice and in a manner it deems appropriate, may modify or set 
168.13 	aside, in whole or in part, any finding or order made or issued by it.
168.14 	(m) Upon a final order that an unfair labor practice has been committed, the board or 
168.15 	the charging party may petition the district court for the enforcement of the order and for 
168.16 	appropriate temporary relief or a restraining order. When the board petitions the court, the 
168.17 	charging party may intervene as a matter of right.
168.18 	(n) Whenever it appears that any party has violated a final order of the board issued 
168.19 	pursuant to this section, the board must petition the district court for an order directing the 
168.20 	party and its officers, agents, servants, successors, and assigns to comply with the order of 
168.21 	the board. The board shall be represented in this action by its general counsel, who has been 
168.22 	appointed by the board. The court may grant or refuse, in whole or in part, the relief sought, 
168.23 	provided that the court also may stay an order of the board pending disposition of the 
168.24 	proceedings. The court may punish a violation of its order as in civil contempt.
168.25 	(o) The board shall have power, upon issuance of an unfair labor practice complaint 
168.26 	alleging that a party has engaged in or is engaging in an unfair labor practice, to petition 
168.27 	the district court for appropriate temporary relief or a restraining order. Upon the filing of 
168.28 	any such petition, the court shall cause notice thereof to be served upon such parties, and 
168.29 	thereupon shall have jurisdiction to grant to the board or commissioner temporary relief or 
168.30 	a restraining order as it deems appropriate. Nothing in this paragraph precludes a charging 
168.31 	party from seeking injunctive relief in district court after filing the unfair labor practice 
168.32 	charge.
168.33 	(p) The proceedings in paragraphs (m), (n), and (o) shall be commenced in the district 
168.34 	court for the county in which the unfair labor practice which is the subject of the order or 
169.1 	administrative complaint was committed, or where a party alleged to have committed the 
169.2 	unfair labor practice resides or transacts business.

169.3 	Sec. 17. Minnesota Statutes 2022, section 179A.13, subdivision 2, is amended to read:
169.4 		Subd. 2.Employers. Public employers, their agents and representatives are prohibited 
169.5 	from:
169.6 	(1) interfering, restraining, or coercing employees in the exercise of the rights guaranteed 
169.7 	in sections 179A.01 to 179A.25;
169.8 	(2) dominating or interfering with the formation, existence, or administration of any 
169.9 	employee organization or contributing other support to it;
169.10 	(3) discriminating in regard to hire or tenure to encourage or discourage membership in 
169.11 	an employee organization;
169.12 	(4) discharging or otherwise discriminating against an employee because the employee 
169.13 	has signed or filed an affidavit, petition, or complaint or given information or testimony 
169.14 	under sections 179A.01 to 179A.25;
169.15 	(5) refusing to meet and negotiate in good faith with the exclusive representative of its 
169.16 	employees in an appropriate unit;
169.17 	(6) refusing to comply with grievance procedures contained in an agreement;
169.18 	(7) distributing or circulating a blacklist of individuals exercising a legal right or of 
169.19 	members of a labor organization for the purpose of preventing blacklisted individuals from 
169.20 	obtaining or retaining employment;
169.21 	(8) violating rules established by the commissioner regulating the conduct of 
169.22 	representation elections;
169.23 	(9) refusing to comply with a valid decision of a binding arbitration panel or arbitrator;
169.24 	(10) violating or refusing to comply with any lawful order or decision issued by the 
169.25 	commissioner or the board;
169.26 	(11) refusing to provide, upon the request of the exclusive representative, all information 
169.27 	pertaining to the public employer's budget both present and proposed, revenues, and other 
169.28 	financing information provided that in the executive branch of state government this clause 
169.29 	may not be considered contrary to the budgetary requirements of sections 16A.10 and 
169.30 	16A.11; or
170.1 	(12) granting or offering to grant the status of permanent replacement employee to a 
170.2 	person for performing bargaining unit work for the employer during a lockout of employees 
170.3 	in an employee organization or during a strike authorized by an employee organization that 
170.4 	is an exclusive representative.;
170.5 	(13) failing or refusing to provide information that is relevant to enforcement or  
170.6 	negotiation of a contract as soon as reasonable after receiving a request by an exclusive  
170.7 	representative, not to exceed 30 days for information relevant to contract enforcement or  
170.8 	60 days for information relevant to contract negotiation absent mutual agreement by the  
170.9 	parties, provided that a state agency may request and the commissioner may extend these 
170.10 	timelines based upon estimated need and after consultation with the exclusive representative; 
170.11 	or
170.12 	(14) refusing to reassign a position after the commissioner has determined the position 
170.13 	was not placed into the correct bargaining unit.

170.14 	Sec. 18. Minnesota Statutes 2022, section 179A.40, subdivision 1, is amended to read:
170.15 		Subdivision 1.Units. The following are the appropriate employee units of the Hennepin 
170.16 	Healthcare System, Inc. All units shall exclude supervisors, managerial employees, and 
170.17 	confidential employees. No additional units of Hennepin Healthcare System, Inc., shall be 
170.18 	eligible to be certified for the purpose of meeting and negotiating with an exclusive 
170.19 	representative. The units include all:
170.20 	(1) registered nurses;
170.21 	(2) physicians except those employed as interns, residents, or fellows;
170.22 	(3) professionals except for registered nurses and physicians;
170.23 	(4) technical and paraprofessional employees;
170.24 	(5) carpenters, electricians, painters, and plumbers;
170.25 	(6) health general service employees;
170.26 	(7) interpreters;
170.27 	(8) emergency medical technicians/emergency medical dispatchers (EMT/EMD), and 
170.28 	paramedics;
170.29 	(9) bioelectronics specialists, bioelectronics technicians, and electronics technicians;
170.30 	(10) skilled maintenance employees; and
170.31 	(11) clerical employees.; and
171.1 	(12) physicians employed as interns, residents, and fellows.

171.2 	Sec. 19. Minnesota Statutes 2022, section 179A.54, subdivision 5, is amended to read:
171.3 		Subd. 5.Legislative action on Collective bargaining agreements. Any agreement 
171.4 	reached between the state and the exclusive representative of individual providers under 
171.5 	chapter 179A shall be submitted to the legislature to be accepted or rejected in accordance 
171.6 	with sections 3.855 and 179A.22 The commissioner of management and budget is authorized 
171.7 	to enter into and implement agreements, including interest arbitration decisions, with the 
171.8 	exclusive representative of individual providers as provided in section 179A.22, subdivision 
171.9 	4, except for terms and conditions requiring appropriations, changes to state law, or approval 
171.10 	from the federal government which shall be contingent upon and executed following receipt 
171.11 	of appropriations and state and federal approval.

171.12 	Sec. 20. RULEMAKING.
 171.13 	The commissioner of the Bureau of Mediation Services must adopt rules on petitions 
171.14 	for majority verification, including technical changes needed for consistency with Minnesota 
171.15 	Statutes, section 179A.12, and the commissioner may use the expedited rulemaking process 
171.16 	under Minnesota Statutes, section 14.389.

171.17 	Sec. 21. REVISOR INSTRUCTION.
 171.18 	The revisor of statutes must renumber Minnesota Statutes, section 179A.12, subdivision 
171.19 	3, as Minnesota Statutes, section 179A.12, subdivision 1a.

171.20 	ARTICLE 9
171.21 	MISCELLANEOUS LABOR PROVISIONS

171.22 	Section 1. Minnesota Statutes 2023 Supplement, section 116J.871, subdivision 1, as 
171.23 	amended by Laws 2024, chapter 85, section 15, is amended to read:
171.24 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
171.25 	the meanings given them.
171.26 	(b) "Economic development" means financial assistance provided to a person directly 
171.27 	or to a local unit of government or nonprofit organization on behalf of a person who is 
171.28 	engaged in the manufacture or sale of goods and services. Economic development does not 
171.29 	include (1) financial assistance for rehabilitation of existing housing; (2) financial assistance 
171.30 	for new housing construction in which total financial assistance at a single project site is 
171.31 	less than $100,000; or (3) financial assistance for the new construction of fully detached 
172.1 	single-family affordable homeownership units for which the financial assistance covers no 
172.2 	more than ten fully detached single-family affordable homeownership units. For purposes 
172.3 	of this paragraph, "affordable homeownership" means housing targeted at households with 
172.4 	incomes, at initial occupancy, at or below 115 percent of the state or area median income, 
172.5 	whichever is greater, as determined by the United States Department of Housing and Urban 
172.6 	Development.
172.7 	(c) "Financial assistance" means (1) a grant awarded by a state agency or allocating 
172.8 	agency for economic development related purposes if a single business receives $200,000 
172.9 	or more of the grant proceeds; (2) a loan or the guaranty or purchase of a loan made by a 
172.10 	state agency or allocating agency for economic development related purposes if a single 
172.11 	business receives $500,000 or more of the loan proceeds; or (3) a reduction, credit, or 
172.12 	abatement of a tax assessed under chapter 297A where the tax reduction, credit, or abatement 
172.13 	applies to a geographic area smaller than the entire state and was granted for economic 
172.14 	development related purposes; or (4) allocations or awards of low-income housing credits 
172.15 	by all allocating agencies as provided in section 462A.222, for which tax credits are used 
172.16 	for multifamily housing projects consisting of more than ten units.. Financial assistance 
172.17 	does not include payments by the state of aids and credits under chapter 273 or 477A to a 
172.18 	political subdivision.
172.19 	(d) "Project site" means the location where improvements are made that are financed in 
172.20 	whole or in part by the financial assistance; or the location of employees that receive financial 
172.21 	assistance in the form of employment and training services as defined in section 116L.19, 
172.22 	subdivision 4, or customized training from a technical college.
172.23 	(e) "State agency" means any agency defined under section 16B.01, subdivision 2, 
172.24 	Enterprise Minnesota, Inc., and the Department of Iron Range Resources and Rehabilitation.
172.25 	(f) "Allocating agency" has the meaning given in section 462A.221, subdivision 1a.

172.26 	EFFECTIVE DATE. This section is effective for developments selected for tax credit 
172.27 	awards or allocations on or after January 1, 2025.

172.28 	Sec. 2. Minnesota Statutes 2023 Supplement, section 116J.871, subdivision 2, is amended 
172.29 	to read:
172.30 		Subd. 2.Prevailing wage required. (a) A state agency or allocating agency may provide 
172.31 	financial assistance to a person only if the person receiving or benefiting from the financial 
172.32 	assistance certifies to the commissioner of labor and industry that laborers and mechanics 
172.33 	at the project site during construction, installation, remodeling, and repairs for which the 
173.1 	financial assistance was provided will be paid the prevailing wage rate as defined in section 
173.2 	177.42, subdivision 6. The person receiving or benefiting from the financial assistance is 
173.3 	also subject to the requirements and enforcement provisions of sections 177.27, 177.30, 
173.4 	177.32, 177.41 to 177.435, and 177.45.
173.5 	(b) For purposes of complying with section 177.30, paragraph (a), clauses (6) and (7), 
173.6 	the state agency or allocating agency awarding the financial assistance is considered the 
173.7 	contracting authority and the project is considered a public works project. The person 
173.8 	receiving or benefiting from the financial assistance shall notify all employers on the project 
173.9 	of the record keeping and reporting requirements in section 177.30, paragraph (a), clauses 
173.10 	(6) and (7). Each employer shall submit the required information to the contracting authority.

173.11 	Sec. 3. Minnesota Statutes 2022, section 116J.871, subdivision 4, is amended to read:
173.12 		Subd. 4.Notification. A state agency or allocating agency shall notify any person 
173.13 	applying for financial assistance from the state agency or allocating agency of the 
173.14 	requirements under subdivision 2 and of the penalties under subdivision 3.

173.15 	Sec. 4. Minnesota Statutes 2022, section 181.960, subdivision 3, is amended to read:
173.16 		Subd. 3.Employer. "Employer" means a person who has 20 one or more employees. 
173.17 	Employer does not include a state agency, statewide system, political subdivision, or advisory 
173.18 	board or commission that is subject to chapter 13.

173.19 	Sec. 5. [462A.051] WAGE THEFT PREVENTION AND USE OF RESPONSIBLE 
173.20 	CONTRACTORS.
173.21 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
173.22 	the meanings given.
173.23 	(b) "Project sponsor" means an individual, legal entity, or nonprofit board that exercises 
173.24 	control, financial responsibility, and decision-making authority over a housing development.
173.25 	(c) "Developer" means an individual, legal entity, or nonprofit board that is responsible 
173.26 	for the coordination of financing and building of a housing development.
173.27 	(c) "Funding" means all forms of financial assistance or the allocation or award of federal 
173.28 	low-income housing tax credits.
173.29 		Subd. 2.Application. This section applies to all forms of financial assistance provided 
173.30 	by the Minnesota Housing Finance Agency, as well as the allocation and award of federal 
173.31 	low-income housing credits, for the development, construction, rehabilitation, renovation, 
174.1 	or retrofitting of multiunit residential housing, including loans, grants, tax credits, loan 
174.2 	guarantees, loan insurance, and other financial assistance.
174.3 		Subd. 3.Disclosures. An applicant for funding under this chapter shall disclose in the 
174.4 	application any conviction, court judgment, agency determination, legal settlement, ongoing 
174.5 	criminal or civil investigation, or lawsuit involving alleged violations of sections 177.24, 
174.6 	177.25, 177.32, 177.41 to 177.44, 181.03, 181.101, 181.13, 181.14, 181.722, 181.723, 
174.7 	181A.01 to 181A.12, or 609.52, subdivision 2, paragraph (a), clause (19), or United States 
174.8 	Code, title 29, sections 201 to 219, or title 40, sections 3141 to 3148, arising or occurring 
174.9 	within the preceding five years on a construction project owned or managed by the developer, 
174.10 	project sponsor, or owner of the proposed project, the intended general contractor for the 
174.11 	proposed project, or any of their respective parent companies, subsidiaries, or other affiliated 
174.12 	companies. An applicant for funding shall make the disclosures required by this subdivision 
174.13 	available within 14 calendar days to any member of the public who submits a request by 
174.14 	mail or electronic correspondence. The applicant shall designate a public information officer 
174.15 	who will serve as a point of contact for public inquiries.
174.16 		Subd. 4.Responsible contractors required. As a condition of receiving funding from 
174.17 	the agency during the application process, the project sponsor shall verify that every 
174.18 	contractor or subcontractor of any tier performing work on the proposed project meets the 
174.19 	minimum criteria to be a responsible contractor under section 16C.285, subdivision 3. This 
174.20 	verification must meet the criteria defined in section 16C.285, subdivision 4.
174.21 		Subd. 5.Certified contractor lists. As a condition of receiving funding, the project 
174.22 	applicant shall have available at the development site main office, a list of every contractor 
174.23 	and subcontractor of any tier that performs work or is expected to perform work on the 
174.24 	proposed project, as described in section 16C.285, subdivision 5, including the following 
174.25 	information for each contractor and subcontractor: business name, scope of work, Department 
174.26 	of Labor and Industry registration number, business name of the entity contracting its 
174.27 	services, business telephone number and email address, and actual or anticipated number 
174.28 	of workers on the project. The project sponsor shall establish the initial contractor list 30 
174.29 	days before the start of construction and shall update the list each month thereafter until 
174.30 	construction is complete. The project sponsor shall post the contractor list in a conspicuous 
174.31 	location at the project site and make the contractor list available to members of the public 
174.32 	upon request.
174.33 		Subd. 6.Wage theft remedy. If any contractor or subcontractor of any tier is found to 
174.34 	have failed to pay statutorily required wages under section 609.52, subdivision 1, clause 
175.1 	(13), on a project receiving funding from or through the agency, the contractor or 
175.2 	subcontractor with the finding is responsible for correcting the violation.
175.3 		Subd. 7.Wage theft prevention plans; disqualification. (a) If any contractor or 
175.4 	subcontractor of any tier fails to pay statutorily required wages on a project receiving funding 
175.5 	from or through the agency as determined by an enforcement entity, the project sponsor of 
175.6 	the project must have a wage theft prevention plan to be eligible for further funding from 
175.7 	the agency. The project sponsor's wage theft prevention plan must describe detailed measures 
175.8 	that the project sponsor and its general contractor have taken and are committed to take to 
175.9 	prevent wage theft on the project, including provisions in any construction contracts and 
175.10 	subcontracts on the project. The plan must be submitted to the Department of Labor and 
175.11 	Industry for review. The Department of Labor and Industry may require the project sponsor 
175.12 	to amend the plan or adopt policies or protocols in the plan. Once approved by the 
175.13 	Department of Labor and Industry, the wage theft prevention plan must be submitted by 
175.14 	the project sponsor to the agency with any subsequent application for funding from the 
175.15 	agency. Such wage theft prevention plans shall be made available to members of the public 
175.16 	by the agency upon request.
175.17 	(b) A project sponsor is disqualified from receiving funding from or through the agency 
175.18 	for three years if any of the project sponsor's contractors or subcontractors of any tier are 
175.19 	found by an enforcement agency to have, within three years after entering into a wage theft 
175.20 	prevention plan under paragraph (a), failed to pay statutorily required wages on a project 
175.21 	receiving financial assistance from or through the agency for a total underpayment of $50,000 
175.22 	or more.
175.23 		Subd. 8.Enforcement. The agency must deny an application for funding that does not 
175.24 	comply with this section or if the project sponsor refuses to enter into the agreements required 
175.25 	by this section. The agency may withhold funding that has been previously approved if the 
175.26 	agency determines that the project sponsor has engaged in unacceptable practices by failing 
175.27 	to comply with this section until the violation is cured.

175.28 	EFFECTIVE DATE. This section is effective for applications for funding submitted 
175.29 	after August 1, 2024.

175.30 	Sec. 6. RULEMAKING; ACCEPTABLE BLOOD LEAD LEVELS FOR WORKERS.
 175.31 	The commissioner of labor and industry, in consultation with the commissioner of health, 
175.32 	shall adopt rules to:
176.1 	(1) lower the acceptable blood lead levels above which require mandatory removal of 
176.2 	workers from the lead exposure; and
176.3 	(2) lower the blood lead levels required before a worker is allowed to return to work. 
176.4 	The thresholds established must be based on the most recent public health information on 
176.5 	the safety of lead exposure.

176.6 	ARTICLE 10
176.7 	EMPLOYEE MISCLASSIFICATION PROHIBITED

176.8 	Section 1. Minnesota Statutes 2023 Supplement, section 177.27, subdivision 1, is amended 
176.9 	to read:
176.10 		Subdivision 1.Examination of records. The commissioner may enter during reasonable 
176.11 	office hours or upon request and inspect the place of business or employment of any employer 
176.12 	of employees working in the state, to examine and inspect books, registers, payrolls, and 
176.13 	other records of any employer that in any way relate to wages, hours, and other conditions 
176.14 	of employment of any employees. The commissioner may transcribe any or all of the books, 
176.15 	registers, payrolls, and other records as the commissioner deems necessary or appropriate 
176.16 	and may question the employer, employees, and other persons to ascertain compliance with 
176.17 	any of the sections 177.21 to 177.435 and 181.165 listed in subdivision 4. The commissioner 
176.18 	may investigate wage claims or complaints by an employee against an employer if the failure 
176.19 	to pay a wage may violate Minnesota law or an order or rule of the department.

176.20 	EFFECTIVE DATE. This section is effective July 1, 2024.

176.21 	Sec. 2. Minnesota Statutes 2023 Supplement, section 177.27, subdivision 2, is amended 
176.22 	to read:
176.23 		Subd. 2.Submission of records; penalty. The commissioner may require the employer 
176.24 	of employees working in the state to submit to the commissioner photocopies, certified 
176.25 	copies, or, if necessary, the originals of employment records that relate to employment or 
176.26 	employment status which the commissioner deems necessary or appropriate. The records 
176.27 	which may be required include full and correct statements in writing, including sworn 
176.28 	statements by the employer, containing information relating to wages, hours, names, 
176.29 	addresses, and any other information pertaining to the employer's employees and the 
176.30 	conditions of their employment as the commissioner deems necessary or appropriate.
177.1 	The commissioner may require the records to be submitted by certified mail delivery 
177.2 	or, if necessary, by personal delivery by the employer or a representative of the employer, 
177.3 	as authorized by the employer in writing.
177.4 	The commissioner may fine the employer up to $10,000 for each failure to submit or 
177.5 	deliver records as required by this section. This penalty is in addition to any penalties 
177.6 	provided under section 177.32, subdivision 1. In determining the amount of a civil penalty 
177.7 	under this subdivision, the appropriateness of such penalty to the size of the employer's 
177.8 	business and the gravity of the violation shall be considered.

177.9 	EFFECTIVE DATE. This section is effective July 1, 2024.

177.10 	Sec. 3. Minnesota Statutes 2022, section 177.27, subdivision 3, is amended to read:
177.11 		Subd. 3.Adequacy of records. If the records maintained by the employer do not provide 
177.12 	sufficient information to determine the exact amount of back wages due an employee, the 
177.13 	commissioner may make a determination of wages due based on available evidence and 
177.14 	mediate a settlement with the employer.

177.15 	EFFECTIVE DATE. This section is effective July 1, 2024.

177.16 	Sec. 4. Minnesota Statutes 2023 Supplement, section 177.27, subdivision 4, is amended 
177.17 	to read:
177.18 		Subd. 4.Compliance orders. The commissioner may issue an order requiring an 
177.19 	employer to comply with sections 177.21 to 177.435, 179.86, 181.02, 181.03, 181.031, 
177.20 	181.032, 181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.165, 181.172, paragraph 
177.21 	(a) or (d), 181.214 to 181.217, 181.275, subdivision 2a, 181.635, 181.722, 181.723, 181.79, 
177.22 	181.85 to 181.89, 181.939 to 181.943, 181.9445 to 181.9448, 181.987, 181.991, 268B.09, 
177.23 	subdivisions 1 to 6, and 268B.14, subdivision 3, with any rule promulgated under section 
177.24 	177.28, 181.213, or 181.215. The commissioner shall issue an order requiring an employer 
177.25 	to comply with sections 177.41 to 177.435, 181.165, or 181.987 if the violation is repeated. 
177.26 	For purposes of this subdivision only, a violation is repeated if at any time during the two 
177.27 	years that preceded the date of violation, the commissioner issued an order to the employer 
177.28 	for violation of sections 177.41 to 177.435, 181.165, or 181.987 and the order is final or 
177.29 	the commissioner and the employer have entered into a settlement agreement that required 
177.30 	the employer to pay back wages that were required by sections 177.41 to 177.435. The 
177.31 	department shall serve the order upon the employer or the employer's authorized 
177.32 	representative in person or by certified mail at the employer's place of business. An employer 
177.33 	who wishes to contest the order must file written notice of objection to the order with the 
178.1 	commissioner within 15 calendar days after being served with the order. A contested case 
178.2 	proceeding must then be held in accordance with sections 14.57 to 14.69 or 181.165. If, 
178.3 	within 15 calendar days after being served with the order, the employer fails to file a written 
178.4 	notice of objection with the commissioner, the order becomes a final order of the 
178.5 	commissioner. For the purposes of this subdivision, an employer includes a contractor that 
178.6 	has assumed a subcontractor's liability within the meaning of section 181.165.

178.7 	EFFECTIVE DATE. This section is effective July 1, 2024.

178.8 	Sec. 5. Minnesota Statutes 2023 Supplement, section 177.27, subdivision 7, is amended 
178.9 	to read:
178.10 		Subd. 7.Employer liability. If an employer is found by the commissioner to have 
178.11 	violated a section identified in subdivision 4, or any rule adopted under section 177.28, 
178.12 	181.213, or 181.215, and the commissioner issues an order to comply, the commissioner 
178.13 	shall order the employer to cease and desist from engaging in the violative practice and to 
178.14 	take such affirmative steps that in the judgment of the commissioner will effectuate the 
178.15 	purposes of the section or rule violated. In addition to remedies, damages, and penalties 
178.16 	provided for in the violated section, the commissioner shall order the employer to pay to 
178.17 	the aggrieved parties back pay, gratuities, and compensatory damages, less any amount 
178.18 	actually paid to the employee aggrieved parties by the employer, and for an additional equal 
178.19 	amount as liquidated damages. Any employer who is found by the commissioner to have 
178.20 	repeatedly or willfully violated a section or sections identified in subdivision 4 shall be 
178.21 	subject to a an additional civil penalty of up to $10,000 for each violation for each employee. 
178.22 	In determining the amount of a civil penalty under this subdivision, the appropriateness of 
178.23 	such penalty to the size of the employer's business and the gravity of the violation shall be 
178.24 	considered. In addition, the commissioner may order the employer to reimburse the 
178.25 	department and the attorney general for all appropriate litigation and hearing costs expended 
178.26 	in preparation for and in conducting the contested case proceeding, unless payment of costs 
178.27 	would impose extreme financial hardship on the employer. If the employer is able to establish 
178.28 	extreme financial hardship, then the commissioner may order the employer to pay a 
178.29 	percentage of the total costs that will not cause extreme financial hardship. Costs include 
178.30 	but are not limited to the costs of services rendered by the attorney general, private attorneys 
178.31 	if engaged by the department, administrative law judges, court reporters, and expert witnesses 
178.32 	as well as the cost of transcripts. Interest shall accrue on, and be added to, the unpaid balance 
178.33 	of a commissioner's order from the date the order is signed by the commissioner until it is 
178.34 	paid, at an annual rate provided in section 549.09, subdivision 1, paragraph (c). The 
179.1 	commissioner may establish escrow accounts for purposes of distributing remedies and
179.2 	damages.

179.3 	EFFECTIVE DATE. This section is effective July 1, 2024.

179.4 	Sec. 6. Minnesota Statutes 2022, section 181.171, subdivision 1, is amended to read:
179.5 		Subdivision 1.Civil action; damages. A person may bring a civil action seeking redress 
179.6 	for violations of sections 181.02, 181.03, 181.031, 181.032, 181.08, 181.09, 181.10, 181.101, 
179.7 	181.11, 181.13, 181.14, 181.145, and181.15, 181.722, and 181.723 directly to district court. 
179.8 	An employer who is found to have violated the above sections is liable to the aggrieved 
179.9 	party for the civil penalties or damages provided for in the section violated. An employer 
179.10 	who is found to have violated the above sections shall also be liable for compensatory 
179.11 	damages and other appropriate relief including but not limited to injunctive relief.

179.12 	EFFECTIVE DATE. This section is effective July 1, 2024.

179.13 	Sec. 7. Minnesota Statutes 2022, section 181.722, is amended to read:
179.14 	181.722 MISREPRESENTATION MISCLASSIFICATION OF EMPLOYMENT 
179.15 	RELATIONSHIP PROHIBITED EMPLOYEES.
179.16 		Subdivision 1.Prohibition Prohibited activities related to employment status. No 
179.17 	employer shall misrepresent the nature of its employment relationship with its employees 
179.18 	to any federal, state, or local government unit; to other employers; or to its employees. An 
179.19 	employer misrepresents the nature of its employment relationship with its employees if it 
179.20 	makes any statement regarding the nature of the relationship that the employer knows or 
179.21 	has reason to know is untrue and if it fails to report individuals as employees when legally 
179.22 	required to do so.
179.23 	(a) A person shall not:
179.24 	(1) fail to classify, represent, or treat an individual who is the person's employee pursuant 
179.25 	to subdivision 3 as an employee in accordance with the requirements of any applicable local, 
179.26 	state, or federal law. A violation under this clause is in addition to any violation of local, 
179.27 	state, or federal law;
179.28 	(2) fail to report or disclose to any person or to any local, state, or federal government 
179.29 	agency an individual who is the person's employee pursuant to subdivision 3 as an employee 
179.30 	when required to do so under any applicable local, state, or federal law. Each failure to 
179.31 	report or disclose an individual as an employee shall constitute a separate violation of this 
179.32 	clause; or
180.1 	(3) require or request an individual who is the person's employee pursuant to subdivision 
180.2 	3 to enter into any agreement or complete any document that misclassifies, misrepresents, 
180.3 	or treats the individual as an independent contractor or otherwise does not reflect that the 
180.4 	individual is the person's employee pursuant to subdivision 3. Each agreement or completed 
180.5 	document constitutes a separate violation of this provision.
180.6 	(b) An owner, partner, principal, member, officer, or agent, on behalf of the person, who 
180.7 	knowingly or repeatedly engaged in any of the prohibited activities in this subdivision may 
180.8 	be held individually liable.
180.9 	(c) An order issued by the commissioner to a person for engaging in any of the prohibited 
180.10 	activities in this subdivision is in effect against any successor person. A person is a successor 
180.11 	person if the person shares three or more of the following with the person to whom the order 
180.12 	was issued:
180.13 	(1) has one or more of the same owners, members, principals, officers, or managers;
180.14 	(2) performs similar work within the state of Minnesota;
180.15 	(3) has one or more of the same telephone or fax numbers;
180.16 	(4) has one or more of the same email addresses or websites;
180.17 	(5) employs or engages substantially the same individuals to provide or perform services;
180.18 	(6) utilizes substantially the same vehicles, facilities, or equipment; or
180.19 	(7) lists or advertises substantially the same project experience and portfolio of work.
180.20 		Subd. 1a.Definitions. (a) "Person" means any individual, sole proprietor, limited liability 
180.21 	company, limited liability partnership, corporation, partnership, incorporated or 
180.22 	unincorporated association, joint stock company, or any other legal or commercial entity.
180.23 	(b) "Department" means the Department of Labor and Industry.
180.24 	(c) "Commissioner" means the commissioner of labor and industry or a duly designated 
180.25 	representative of the commissioner who is either an employee of the Department of Labor 
180.26 	and Industry or a person working under contract with the Department of Labor and Industry.
180.27 	(d) "Individual" means a human being.
180.28 	(e) "Knowingly" means knew or could have known with the exercise of reasonable 
180.29 	diligence.
180.30 		Subd. 2.Agreements to misclassify prohibited. No employer shall require or request 
180.31 	any employee to enter into any agreement, or sign any document, that results in 
181.1 	misclassification of the employee as an independent contractor or otherwise does not 
181.2 	accurately reflect the employment relationship with the employer.
181.3 		Subd. 3.Determination of employment relationship. For purposes of this section, the 
181.4 	nature of an employment relationship is determined using the same tests and in the same 
181.5 	manner as employee status is determined under the applicable workers' compensation and 
181.6 	unemployment insurance program laws and rules.
181.7 		Subd. 4.Civil remedy Damages and penalties. A construction worker, as defined in 
181.8 	section 179.254, who is not an independent contractor and has been injured by a violation 
181.9 	of this section, may bring a civil action for damages against the violator. If the construction 
181.10 	worker injured is an employee of the violator of this section, the employee's representative, 
181.11 	as defined in section 179.01, subdivision 5, may bring a civil action for damages against 
181.12 	the violator on behalf of the employee. The court may award attorney fees, costs, and 
181.13 	disbursements to a construction worker recovering under this section.
181.14 	(a) The following damages and penalties may be imposed for a violation of this section:
181.15 	(1) compensatory damages to the individual the person has failed to classify, represent, 
181.16 	or treat as an employee pursuant to subdivision 3. Compensatory damages includes but is 
181.17 	not limited to the value of supplemental pay including minimum wage; overtime; shift 
181.18 	differentials; vacation pay, sick pay, and other forms of paid time off; health insurance; life 
181.19 	and disability insurance; retirement plans; savings plans and any other form of benefit; 
181.20 	employer contributions to unemployment insurance; Social Security and Medicare; and any 
181.21 	costs and expenses incurred by the individual resulting from the person's failure to classify, 
181.22 	represent, or treat the individual as an employee;
181.23 	(2) a penalty of up to $10,000 for each individual the person failed to classify, represent, 
181.24 	or treat as an employee pursuant to subdivision 3;
181.25 	(3) a penalty of up to $10,000 for each violation of subdivision 1; and
181.26 	(4) a penalty of $1,000 for each person who delays, obstructs, or otherwise fails to 
181.27 	cooperate with the commissioner's investigation. Each day of delay, obstruction, or failure 
181.28 	to cooperate constitutes a separate violation.
181.29 	(b) This section may be investigated and enforced under the commissioner's authority 
181.30 	under state law.
181.31 		Subd. 5.Reporting of violations. Any court finding that a violation of this section has 
181.32 	occurred shall transmit a copy of its findings of fact and conclusions of law to the 
181.33 	commissioner of labor and industry. The commissioner of labor and industry shall report 
182.1 	the finding to relevant local, state, and federal agencies, including the commissioner of 
182.2 	commerce, the commissioner of employment and economic development, the commissioner 
182.3 	of revenue, the federal Internal Revenue Service, and the United States Department of Labor.

182.4 	EFFECTIVE DATE. This section is effective July 1, 2024.

182.5 	Sec. 8. Minnesota Statutes 2022, section 181.723, is amended to read:
182.6 	181.723 MISCLASSIFICATION OF CONSTRUCTION CONTRACTORS
182.7 	EMPLOYEES.
182.8 		Subdivision 1.Definitions. The definitions in this subdivision apply to this section.
182.9 	(a) "Person" means any individual, sole proprietor, limited liability company, limited 
182.10 	liability partnership, corporation, partnership, incorporated or unincorporated association, 
182.11 	sole proprietorship, joint stock company, or any other legal or commercial entity.
182.12 	(b) "Department" means the Department of Labor and Industry.
182.13 	(c) "Commissioner" means the commissioner of labor and industry or a duly designated 
182.14 	representative of the commissioner who is either an employee of the Department of Labor 
182.15 	and Industry or person working under contract with the Department of Labor and Industry.
182.16 	(d) "Individual" means a human being.
182.17 	(e) "Day" means calendar day unless otherwise provided.
182.18 	(f) "Knowingly" means knew or could have known with the exercise of reasonable 
182.19 	diligence.
182.20 	(g) "Business entity" means a person other than an individual or a sole proprietor as that 
182.21 	term is defined in paragraph (a), except the term does not include an individual.
182.22 	(h) "Independent contractor" means a business entity that meets all the requirements 
182.23 	under subdivision 4, paragraph (a).
182.24 		Subd. 2.Limited application. This section only applies to individuals persons providing 
182.25 	or performing public or private sector commercial or residential building construction or 
182.26 	improvement services. Building construction andor improvement services do not include
182.27 	all public or private sector commercial or residential building construction or improvement 
182.28 	services except for: (1) the manufacture, supply, or sale of products, materials, or 
182.29 	merchandise; (2) landscaping services for the maintenance or removal of existing plants, 
182.30 	shrubs, trees, and other vegetation, whether or not the services are provided as part of a 
182.31 	contract for the building construction or improvement services; and (3) all other landscaping 
183.1 	services, unless the other landscaping services are provided as part of a contract for the 
183.2 	building construction or improvement services.
183.3 		Subd. 3.Employee-employer relationship. Except as provided in subdivision 4, for 
183.4 	purposes of chapters 176, 177, 181, 181A, 182, and 268, as of January 1, 2009 and 326B, 
183.5 	an individual who provides or performs building construction or improvement services for 
183.6 	a person that are in the course of the person's trade, business, profession, or occupation is 
183.7 	an employee of that person and that person is an employer of the individual.
183.8 		Subd. 4.Independent contractor. (a) An individual is an independent contractor and 
183.9 	not an employee of the person for whom the individual is providing or performing services 
183.10 	in the course of the person's trade, business, profession, or occupation only if the individual
183.11 	is operating as a business entity that meets all of the following requirements at the time the 
183.12 	services were provided or performed:
183.13 	(1) maintains a separate business with the individual's own office, equipment, materials, 
183.14 	and other facilities;
183.15 	(2)(i) holds or has applied for a federal employer identification number or (ii) has filed 
183.16 	business or self-employment income tax returns with the federal Internal Revenue Service 
183.17 	if the individual has performed services in the previous year;
183.18 	(3) is operating under contract to perform the specific services for the person for specific 
183.19 	amounts of money and under which the individual controls the means of performing the 
183.20 	services;
183.21 	(4) is incurring the main expenses related to the services that the individual is performing 
183.22 	for the person under the contract;
183.23 	(5) is responsible for the satisfactory completion of the services that the individual has 
183.24 	contracted to perform for the person and is liable for a failure to complete the services;
183.25 	(6) receives compensation from the person for the services performed under the contract 
183.26 	on a commission or per-job or competitive bid basis and not on any other basis;
183.27 	(7) may realize a profit or suffer a loss under the contract to perform services for the 
183.28 	person;
183.29 	(8) has continuing or recurring business liabilities or obligations; and
183.30 	(9) the success or failure of the individual's business depends on the relationship of 
183.31 	business receipts to expenditures.
184.1 	An individual who is not registered, if required by section 326B.701, is presumed to be 
184.2 	an employee of a person for whom the individual performs services in the course of the 
184.3 	person's trade, business, profession, or occupation. The person for whom the services were 
184.4 	performed may rebut this presumption by showing that the unregistered individual met all 
184.5 	nine factors in this paragraph at the time the services were performed.
184.6 	(b) If an individual is an owner or partial owner of a business entity, the individual is 
184.7 	an employee of the person for whom the individual is performing services in the course of 
184.8 	the person's trade, business, profession, or occupation, and is not an employee of the business 
184.9 	entity in which the individual has an ownership interest, unless:
184.10 	(1) the business entity meets the nine factors in paragraph (a);
184.11 	(2) invoices and payments are in the name of the business entity; and
184.12 	(3) the business entity is registered with the secretary of state, if required.
184.13 	If the business entity in which the individual has an ownership interest is not registered, 
184.14 	if required by section 326B.701, the individual is presumed to be an employee of a person 
184.15 	for whom the individual performs services and not an employee of the business entity in 
184.16 	which the individual has an ownership interest. The person for whom the services were 
184.17 	performed may rebut the presumption by showing that the business entity met the 
184.18 	requirements of clauses (1) to (3) at the time the services were performed.
184.19 	(1) was established and maintained separately from and independently of the person for 
184.20 	whom the services were provided or performed;
184.21 	(2) owns, rents, or leases equipment, tools, vehicles, materials, supplies, office space, 
184.22 	or other facilities that are used by the business entity to provide or perform building 
184.23 	construction or improvement services;
184.24 	(3) provides or performs, or offers to provide or perform, the same or similar building 
184.25 	construction or improvement services for multiple persons or the general public;
184.26 	(4) is in compliance with all of the following:
184.27 	(i) holds a federal employer identification number if required by federal law;
184.28 	(ii) holds a Minnesota tax identification number if required by Minnesota law;
184.29 	(iii) has received and retained 1099 forms for income received for building construction 
184.30 	or improvement services provided or performed, if required by Minnesota or federal law;
184.31 	(iv) has filed business or self-employment income tax returns, including estimated tax 
184.32 	filings, with the federal Internal Revenue Service and the Department of Revenue, as the 
185.1 	business entity or as a self-employed individual reporting income earned, for providing or 
185.2 	performing building construction or improvement services, if any, in the previous 12 months; 
185.3 	and
185.4 	(v) has completed and provided a W-9 federal income tax form to the person for whom 
185.5 	the services were provided or performed if required by federal law;
185.6 	(5) is in good standing as defined by section 5.26, if applicable;
185.7 	(6) has a Minnesota unemployment insurance account if required by chapter 268;
185.8 	(7) has obtained required workers' compensation insurance coverage if required by 
185.9 	chapter 176;
185.10 	(8) holds current business licenses, registrations, and certifications if required by chapter 
185.11 	326B and sections 327.31 to 327.36;
185.12 	(9) is operating under a written contract to provide or perform the specific services for 
185.13 	the person that:
185.14 	(i) is signed and dated by both an authorized representative of the business entity and 
185.15 	of the person for whom the services are being provided or performed;
185.16 	(ii) is fully executed no later than 30 days after the date work commences;
185.17 	(iii) identifies the specific services to be provided or performed under the contract;
185.18 	(iv) provides for compensation from the person for the services provided or performed 
185.19 	under the contract on a commission or per-job or competitive bid basis and not on any other 
185.20 	basis; and
185.21 	(v) the requirements of item (ii) shall not apply to change orders;
185.22 	(10) submits invoices and receives payments for completion of the specific services 
185.23 	provided or performed under the written proposal, contract, or change order in the name of 
185.24 	the business entity. Payments made in cash do not meet this requirement;
185.25 	(11) the terms of the written proposal, contract, or change order provide the business 
185.26 	entity control over the means of providing or performing the specific services, and the 
185.27 	business entity in fact controls the provision or performance of the specific services;
185.28 	(12) incurs the main expenses and costs related to providing or performing the specific 
185.29 	services under the written proposal, contract, or change order;
185.30 	(13) is responsible for the completion of the specific services to be provided or performed 
185.31 	under the written proposal, contract, or change order and is responsible, as provided under 
186.1 	the written proposal, contract, or change order, for failure to complete the specific services; 
186.2 	and
186.3 	(14) may realize additional profit or suffer a loss, if costs and expenses to provide or 
186.4 	perform the specific services under the written proposal, contract, or change order are less 
186.5 	than or greater than the compensation provided under the written proposal, contract, or 
186.6 	change order.
186.7 	(b)(1) Any individual providing or performing the services as or for a business entity is 
186.8 	an employee of the person who engaged the business entity, unless the business entity meets 
186.9 	all of the requirements under subdivision 4, paragraph (a).
186.10 	(2) Any individual who is determined to be the person's employee is acting as an agent 
186.11 	of and in the interest of the person when engaging any other individual or business entity 
186.12 	to provide or perform any portion of the services that the business entity was engaged by 
186.13 	the person to provide or perform.
186.14 	(3) Any individual engaged by an employee of the person, at any tier under the person, 
186.15 	is also the person's employee, unless the individual is providing or performing the services 
186.16 	as or for a business entity that meets the requirements of subdivision 4, paragraph (a).
186.17 	(4) Clauses (1) to (3) do not create an employee-employer relationship between a person 
186.18 	and an individual if: (i) there is an intervening business entity in the contractual chain 
186.19 	between the person and the individual that meets the requirements of subdivision 4, paragraph 
186.20 	(a); or (ii) the person establishes that an intervening business entity treats and classifies the 
186.21 	individual as an employee for purposes of, and in compliance with, chapters 176, 177, 181, 
186.22 	181A, 268, 268B, 270C, and 290.
186.23 		Subd. 7.Prohibited activities related to independent contractor status. (a) The 
186.24 	prohibited activities in this subdivision paragraphs (b) and (c) are in addition to those the 
186.25 	activities prohibited in sections 326B.081 to 326B.085.
186.26 	(b) An individual providing or performing building construction or improvement services 
186.27 	shall not hold himself or herself out represent themselves as an independent contractor 
186.28 	unless the individual is operating as a business entity that meets all the requirements of 
186.29 	subdivision 4, paragraph (a).
186.30 	(c) A person who provides or performs building construction or improvement services 
186.31 	in the course of the person's trade, business, occupation, or profession shall not:
186.32 	(1) as a condition of payment for services provided or performed, require an individual 
186.33 	through coercion, misrepresentation, or fraudulent means, who is an employee pursuant to 
187.1 	this section, to register as a construction contractor under section 326B.701, or to adopt or 
187.2 	agree to being classified, represented, or treated as an independent contractor status or form 
187.3 	a business entity. Each instance of conditioning payment to an individual who is an employee 
187.4 	on one of these conditions shall constitute a separate violation of this provision;
187.5 	(2) knowingly misrepresent or misclassify an individual as an independent contractor.
187.6 	fail to classify, represent, or treat an individual who is an employee pursuant to this section 
187.7 	as an employee in accordance with the requirements of any of the chapters listed in 
187.8 	subdivision 3. Failure to classify, represent, or treat an individual who is an employee 
187.9 	pursuant to this section as an employee in accordance with each requirement of a chapter 
187.10 	listed in subdivision 3 shall constitute a separate violation of this provision;
187.11 	(3) fail to report or disclose to any person or to any local, state, or federal government 
187.12 	agency an individual who is an employee pursuant to subdivision 3, as an employee when 
187.13 	required to do so under any applicable local, state, or federal law. Each failure to report or 
187.14 	disclose an individual as an employee shall constitute a separate violation of this provision;
187.15 	(4) require or request an individual who is an employee pursuant to this section to enter 
187.16 	into any agreement or complete any document that misclassifies, misrepresents, or treats 
187.17 	the individual as an independent contractor or otherwise does not reflect that the individual 
187.18 	is an employee pursuant to this section. Each agreement or completed document shall 
187.19 	constitute a separate violation of this provision; or
187.20 	(5) require an individual who is an employee under this section to register under section 
187.21 	326B.701.
187.22 	(d) In addition to the person providing or performing building construction or 
187.23 	improvement services in the course of the person's trade, business, occupation, or profession, 
187.24 	any owner, partner, principal, member, officer, or agent who engaged in any of the prohibited 
187.25 	activities in this subdivision knowingly or repeatedly may be held individually liable.
187.26 	(e) An order issued by the commissioner to a person for engaging in any of the prohibited 
187.27 	activities in this subdivision is in effect against any successor person. A person is a successor 
187.28 	person if the person shares three or more of the following with the person to whom the order 
187.29 	was issued:
187.30 	(1) has one or more of the same owners, members, principals, officers, or managers;
187.31 	(2) performs similar work within the state of Minnesota;
187.32 	(3) has one or more of the same telephone or fax numbers;
187.33 	(4) has one or more of the same email addresses or websites;
188.1 	(5) employs or engages substantially the same individuals to provide or perform building 
188.2 	construction or improvement services;
188.3 	(6) utilizes substantially the same vehicles, facilities, or equipment; or
188.4 	(7) lists or advertises substantially the same project experience and portfolio of work.
188.5 	(f) If a person who has engaged an individual to provide or perform building construction 
188.6 	or improvement services that are in the course of the person's trade, business, profession, 
188.7 	or occupation, classifies, represents, treats, reports, or discloses the individual as an 
188.8 	independent contractor, the person shall maintain, for at least three years, and in a manner 
188.9 	that may be readily produced to the commissioner upon demand, all the information and 
188.10 	documentation upon which the person based the determination that the individual met all 
188.11 	the requirements under subdivision 4, paragraph (a), at the time the individual was engaged 
188.12 	and at the time the services were provided or performed.
188.13 	(g) The following damages and penalties may be imposed for a violation of this section:
188.14 	(1) compensatory damages to the individual the person failed to classify, represent, or 
188.15 	treat as an employee pursuant to this section. Compensatory damages include but are not 
188.16 	limited to the value of supplemental pay including minimum wage; overtime; shift 
188.17 	differentials; vacation pay; sick pay; and other forms of paid time off; health insurance; life 
188.18 	and disability insurance; retirement plans; saving plans and any other form of benefit; 
188.19 	employer contributions to unemployment insurance; Social Security and Medicare and any 
188.20 	costs and expenses incurred by the individual resulting from the person's failure to classify, 
188.21 	represent, or treat the individual as an employee;
188.22 	(2) a penalty of up to $10,000 for each individual the person failed to classify, represent, 
188.23 	or treat as an employee pursuant to this section;
188.24 	(3) a penalty of up to $10,000 for each violation of this subdivision; and
188.25 	(4) a penalty of $1,000 for any person who delays, obstructs, or otherwise fails to 
188.26 	cooperate with the commissioner's investigation. Each day of delay, obstruction, or failure 
188.27 	to cooperate constitutes a separate violation.
188.28 	(h) This section may be investigated and enforced under the commissioner's authority 
188.29 	under state law.
188.30 		Subd. 13.Rulemaking. The commissioner may, in consultation with the commissioner 
188.31 	of revenue and the commissioner of employment and economic development, adopt, amend, 
188.32 	suspend, and repeal rules under the rulemaking provisions of chapter 14 that relate to the 
189.1 	commissioner's responsibilities under this section. This subdivision is effective May 26, 
189.2 	2007.
189.3 		Subd. 15.Notice and review by commissioners of revenue and employment and 
189.4 	economic development. When the commissioner has reason to believe that a person has 
189.5 	violated subdivision 7, paragraph (b); or (c), clause (1) or (2), the commissioner must notify 
189.6 	the commissioner of revenue and the commissioner of employment and economic 
189.7 	development. Upon receipt of notification from the commissioner, the commissioner of 
189.8 	revenue must review the information returns required under section 6041A of the Internal 
189.9 	Revenue Code. The commissioner of revenue shall also review the submitted certification 
189.10 	that is applicable to returns audited or investigated under section 289A.35.

189.11 	EFFECTIVE DATE. This section is effective July 1, 2024, except that the amendments 
189.12 	to subdivision 4 are effective for building construction or improvement services provided 
189.13 	or performed on or after March 1, 2025.

189.14 	Sec. 9. [181.724] INTERGOVERNMENTAL MISCLASSIFICATION 
189.15 	ENFORCEMENT AND EDUCATION PARTNERSHIP ACT.
189.16 		Subdivision 1.Citation. This section and section 181.725 may be cited as the 
189.17 	"Intergovernmental Misclassification Enforcement and Education Partnership Act."
189.18 		Subd. 2.Policy and statement of purpose. It is the policy of the state of Minnesota to 
189.19 	prevent employers from misclassifying workers, because employee misclassification allows 
189.20 	an employer to illegally evade obligations under state labor, employment, and tax laws, 
189.21 	including but not limited to the laws governing minimum wage, overtime, unemployment 
189.22 	insurance, paid family medical leave, earned sick and safe time, workers' compensation 
189.23 	insurance, temporary disability insurance, the payment of wages, and payroll taxes.
189.24 		Subd. 3.Definitions. (a) For the purposes of this section and section 181.725, the 
189.25 	following terms have the meanings given, unless the language or context clearly indicates 
189.26 	that a different meaning is intended.
189.27 	(b) "Partnership entity" means one of the following governmental entities with jurisdiction 
189.28 	over employee misclassification in Minnesota:
189.29 	(1) the Department of Labor and Industry;
189.30 	(2) the Department of Revenue;
189.31 	(3) the Department of Employment and Economic Development;
189.32 	(4) the Department of Commerce; and
190.1 	(5) the attorney general in the attorney general's enforcement capacity under sections 
190.2 	177.45 and 181.1721.
190.3 	(c) "Employee misclassification" means the practice by an employer of not properly 
190.4 	classifying workers as employees.
190.5 		Subd. 4.Coordination, collaboration, and information sharing. For purposes of this 
190.6 	section, a partnership entity:
190.7 	(1) shall communicate with other entities to help detect and investigate instances of 
190.8 	employee misclassification;
190.9 	(2) may request from, provide to, or receive from the other partnership entities data 
190.10 	necessary for the purpose of detecting and investigating employee misclassification, unless 
190.11 	prohibited by federal law; and
190.12 	(3) may collaborate with one another when investigating employee misclassification, 
190.13 	unless prohibited by federal law. Collaboration includes but is not limited to referrals, 
190.14 	strategic enforcement, and joint investigations by two or more partnership entities.

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

190.16 	Sec. 10. [181.725] INTERGOVERNMENTAL MISCLASSIFICATION 
190.17 	ENFORCEMENT AND EDUCATION PARTNERSHIP.
190.18 		Subdivision 1.Composition. The Intergovernmental Misclassification Enforcement and 
190.19 	Education Partnership is composed of the following members or their designees, who shall 
190.20 	serve on behalf of their respective partnership entities:
190.21 	(1) the commissioner of labor and industry;
190.22 	(2) the commissioner of revenue;
190.23 	(3) the commissioner of employment and economic development;
190.24 	(4) the commissioner of commerce; and
190.25 	(5) the attorney general.
190.26 		Subd. 2.Meetings. The commissioner of labor and industry, in consultation with other 
190.27 	members of the partnership, shall convene and lead meetings of the partnership to discuss 
190.28 	issues related to the investigation of employee misclassification and public outreach. 
190.29 	Members of the partnership may select a designee to attend any such meeting. Meetings 
190.30 	must occur at least quarterly.
191.1 		Subd. 2a.Additional meetings. (a) In addition to regular quarterly meetings under 
191.2 	subdivision 2, the commissioner of labor and industry, in consultation with members of the 
191.3 	partnership, may convene and lead additional meetings for the purpose of discussing and 
191.4 	making recommendations under subdivision 4a.
191.5 	(b) This subdivision expires July 31, 2025, unless a different expiration date is specified 
191.6 	in law.
191.7 		Subd. 3.Roles. Each partnership entity may use the information received through its 
191.8 	participation in the partnership to investigate employee misclassification within their relevant 
191.9 	jurisdictions as follows:
191.10 	(1) the Department of Labor and Industry in its enforcement authority under chapters 
191.11 	176, 177, and 181;
191.12 	(2) the Department of Revenue in its enforcement authority under chapters 289A and 
191.13 	290;
191.14 	(3) the Department of Employment and Economic Development in its enforcement 
191.15 	authority under chapters 268 and 268B;
191.16 	(4) the Department of Commerce in its enforcement authority under chapters 45, 60A, 
191.17 	60K, 79, and 79A; and
191.18 	(5) the attorney general in the attorney general's enforcement authority under sections 
191.19 	177.45 and 181.1721.
191.20 		Subd. 4.Annual presentation to the legislature. At the request of the chairs, the 
191.21 	Intergovernmental Misclassification Enforcement and Education Partnership shall present 
191.22 	annually to members of the house of representatives and senate committees with jurisdiction 
191.23 	over labor. The presentation shall include information about how the partnership carried 
191.24 	out its duties during the preceding calendar year.
191.25 		Subd. 4a.First presentation. (a) By March 1, 2025, the Intergovernmental 
191.26 	Misclassification Enforcement and Education Partnership shall make its first presentation 
191.27 	to members of the house of representatives and senate committees with jurisdiction over 
191.28 	labor. The first presentation may be made in a form and manner determined by the 
191.29 	partnership. In addition to providing information about how the partnership carried out its 
191.30 	duties in its first year, the presentation shall include the following information and 
191.31 	recommendations, including any budget requests to carry out the recommendations:
191.32 	(1) consider any staffing recommendations for the partnership and each partnership 
191.33 	entity to carry out the duties and responsibilities under this section;
192.1 	(2) provide a summary of the industries, areas, and employers with high numbers of 
192.2 	misclassification violations and recommendations for proactive review and enforcement 
192.3 	efforts;
192.4 	(3) propose a system for making cross referrals between partnership entities;
192.5 	(4) identify cross-training needs and a proposed cross-training plan; and
192.6 	(5) propose a metric or plan for monitoring and assessing:
192.7 	(i) the number and severity of employee misclassification violations; and
192.8 	(ii) the adequacy and effectiveness of the partnership's duties related to employee 
192.9 	misclassification, including but not limited to the partnership's efforts on education, outreach, 
192.10 	detection, investigation, deterrence, and enforcement of employee misclassification.
192.11 	(b) This subdivision expires July 31, 2025, unless a different expiration date is specified 
192.12 	in law.
192.13 		Subd. 5.Separation. The Intergovernmental Misclassification Enforcement and 
192.14 	Education Partnership is not a separate agency or board and is not subject to chapter 13D. 
192.15 	Data shared or created by the partnership entities under this section or section 181.724 are 
192.16 	subject to chapter 13 and hold the data classification prescribed by law.
192.17 		Subd. 6.Duties. The Intergovernmental Misclassification Enforcement and Education 
192.18 	Partnership shall:
192.19 	(1) set goals to maximize Minnesota's efforts to detect, investigate, and deter employee 
192.20 	misclassification;
192.21 	(2) share information to facilitate the detection and investigation of employee 
192.22 	misclassification;
192.23 	(3) develop a process or procedure that provides a person with relevant information and 
192.24 	connects them with relevant partnership entities, regardless of which partnership entity that 
192.25 	person contacts for assistance;
192.26 	(4) identify best practices in investigating employee misclassification;
192.27 	(5) identify resources needed for better enforcement of employee misclassification;
192.28 	(6) inform and educate stakeholders on rights and responsibilities related to employee 
192.29 	misclassification;
192.30 	(7) serve as a unified point of contact for workers, businesses, and the public impacted 
192.31 	by misclassification;
193.1 	(8) inform the public on enforcement actions taken by the partnership entities; and
193.2 	(9) perform other duties as necessary to:
193.3 	(i) increase the effectiveness of detection, investigation, enforcement, and deterrence of 
193.4 	employee misclassification; and
193.5 	(ii) carry out the purposes of the partnership.
193.6 		Subd. 7.Public outreach. (a) The commissioner of labor and industry shall maintain 
193.7 	on the department's website information about the Intergovernmental Misclassification 
193.8 	Enforcement and Education Partnership, including information about how to file a complaint 
193.9 	related to employee misclassification.
193.10 	(b) Each partnership entity shall maintain on its website information about worker 
193.11 	classification laws, including requirements for employers and employees, consequences for 
193.12 	misclassifying workers, and contact information for other partnership entities.
193.13 		Subd. 8.No limitation of other duties. This section does not limit the duties or 
193.14 	authorities of a partnership entity, or any other government entity, under state law.

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

193.16 	Sec. 11. Minnesota Statutes 2022, section 270B.14, subdivision 17, is amended to read:
193.17 		Subd. 17.Disclosure to Department of Commerce. (a) The commissioner may disclose 
193.18 	to the commissioner of commerce information required to administer the Uniform Disposition 
193.19 	of Unclaimed Property Act in sections 345.31 to 345.60, including the Social Security 
193.20 	numbers of the taxpayers whose refunds are on the report of abandoned property submitted 
193.21 	by the commissioner to the commissioner of commerce under section 345.41. Except for 
193.22 	data published under section 345.42, the information received that is private or nonpublic 
193.23 	data retains its classification, and can be used by the commissioner of commerce only for 
193.24 	the purpose of verifying that the persons claiming the refunds are the owners.
193.25 	(b) The commissioner may disclose a return or return information to the commissioner 
193.26 	of commerce under section 45.0135 to the extent necessary to investigate employer 
193.27 	compliance with section 176.181.

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

194.1 	Sec. 12. Minnesota Statutes 2022, section 270B.14, is amended by adding a subdivision 
194.2 	to read:
194.3 		Subd. 23.Disclosure to the attorney general. The commissioner may disclose a return 
194.4 	or return information to the attorney general for the purpose of determining whether a 
194.5 	business is an employer and to the extent necessary to enforce section 177.45 or 181.1721.

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

194.7 	Sec. 13. Minnesota Statutes 2022, section 326B.081, subdivision 3, is amended to read:
194.8 		Subd. 3.Applicable law. "Applicable law" means the provisions of sections 181.165, 
194.9 	181.722, 181.723, 325E.66, 327.31 to 327.36, this chapter, and chapter 341, and all rules, 
194.10 	orders, stipulation agreements, settlements, compliance agreements, licenses, registrations, 
194.11 	certificates, and permits adopted, issued, or enforced by the department under sections 
194.12 	181.165, 181.722, 181.723, 325E.66, 327.31 to 327.36, this chapter, or chapter 341.

194.13 	EFFECTIVE DATE. This section is effective July 1, 2024.

194.14 	Sec. 14. Minnesota Statutes 2022, section 326B.081, subdivision 6, is amended to read:
194.15 		Subd. 6.Licensing order. "Licensing order" means an order issued under section 
194.16 	326B.082, subdivision 12, paragraph (a).

194.17 	EFFECTIVE DATE. This section is effective July 1, 2024.

194.18 	Sec. 15. Minnesota Statutes 2022, section 326B.081, subdivision 8, is amended to read:
194.19 		Subd. 8.Stop work order. "Stop work order" means an order issued under section 
194.20 	326B.082, subdivision 10.

194.21 	EFFECTIVE DATE. This section is effective March 1, 2025.

194.22 	Sec. 16. Minnesota Statutes 2022, section 326B.082, subdivision 1, is amended to read:
194.23 		Subdivision 1.Remedies available. The commissioner may enforce all applicable law 
194.24 	under this section. The commissioner may use any enforcement provision in this section, 
194.25 	including the assessment of monetary penalties, against a person required to have a license, 
194.26 	registration, certificate, or permit under the applicable law based on conduct that would 
194.27 	provide grounds for action against a licensee, registrant, certificate holder, or permit holder 
194.28 	under the applicable law. The use of an enforcement provision in this section shall not 
194.29 	preclude the use of any other enforcement provision in this section or otherwise provided 
194.30 	by law. The commissioner's investigation and enforcement authority under this section may 
195.1 	be used by the commissioner in addition to or as an alternative to any other investigation 
195.2 	and enforcement authority provided by law.

195.3 	EFFECTIVE DATE. This section is effective July 1, 2024.

195.4 	Sec. 17. Minnesota Statutes 2022, section 326B.082, subdivision 2, is amended to read:
195.5 		Subd. 2.Access to information and property; subpoenas. (a) In order to carry out the 
195.6 	purposes of the applicable law, the commissioner may:
195.7 	(1) administer oaths and affirmations, certify official acts, interview, question, take oral 
195.8 	or written statements, demand data and information, and take depositions;
195.9 	(2) request, examine, take possession of, test, sample, measure, photograph, record, and 
195.10 	copy any documents, apparatus, devices, equipment, or materials;
195.11 	(3) at a time and place indicated by the commissioner, request persons to appear before 
195.12 	the commissioner to give testimony, provide data and information, and produce documents, 
195.13 	apparatus, devices, equipment, or materials;
195.14 	(4) issue subpoenas to compel persons to appear before the commissioner to give 
195.15 	testimony, provide data and information, and to produce documents, apparatus, devices, 
195.16 	equipment, or materials; and
195.17 	(5) with or without notice, enter without delay upon and access all areas of any property, 
195.18 	public or private, for the purpose of taking any action authorized under this subdivision or 
195.19 	the applicable law, including obtaining to request, examine, take possession of, test, sample, 
195.20 	measure, photograph, record, and copy any data, information, remedying documents, 
195.21 	apparatus, devices, equipment, or materials; to interview, question, or take oral or written 
195.22 	statements; to remedy violations,; or conducting to conduct surveys, inspections, or 
195.23 	investigations.
195.24 	(b) Persons requested by the commissioner to give testimony, provide data and 
195.25 	information, or produce documents, apparatus, devices, equipment, or materials shall respond 
195.26 	within the time and in the manner specified by the commissioner. If no time to respond is 
195.27 	specified in the request, then a response shall be submitted within 30 days of the 
195.28 	commissioner's service of the request.
195.29 	(c) Upon the refusal or anticipated refusal of a property owner, lessee, property owner's 
195.30 	representative, or lessee's representative to permit the commissioner's entry onto and access 
195.31 	to all areas of any property as provided in paragraph (a), the commissioner may apply for 
195.32 	an administrative inspection order in the Ramsey County District Court or, at the 
196.1 	commissioner's discretion, in the district court in the county in which the property is located. 
196.2 	The commissioner may anticipate that a property owner or lessee will refuse entry and 
196.3 	access to all areas of a property if the property owner, lessee, property owner's representative, 
196.4 	or lessee's representative has refused to permit entry or access to all areas of a property on 
196.5 	a prior occasion or has informed the commissioner that entry or access to areas of a property 
196.6 	will be refused. Upon showing of administrative probable cause by the commissioner, the 
196.7 	district court shall issue an administrative inspection order that compels the property owner 
196.8 	or lessee to permit the commissioner to enter and be allowed access to all areas of the 
196.9 	property for the purposes specified in paragraph (a).
196.10 	(d) Upon the application of the commissioner, a district court shall treat the failure of 
196.11 	any person to obey a subpoena lawfully issued by the commissioner under this subdivision 
196.12 	as a contempt of court.

196.13 	EFFECTIVE DATE. This section is effective July 1, 2024.

196.14 	Sec. 18. Minnesota Statutes 2022, section 326B.082, subdivision 4, is amended to read:
196.15 		Subd. 4.Fax or email transmission. When this section or section 326B.083 permits a 
196.16 	request for reconsideration or request for hearing to be served by fax on the commissioner, 
196.17 	or when the commissioner instructs that a request for reconsideration or request for hearing 
196.18 	be served by email on the commissioner, the fax or email shall not exceed 15 printed pages 
196.19 	in length. The request shall be considered timely served if the fax or email is received by 
196.20 	the commissioner, at the fax number or email address identified by the commissioner in the 
196.21 	order or notice of violation, no later than 4:30 p.m. central time on the last day permitted 
196.22 	for faxing or emailing the request. Where the quality or authenticity of the faxed or emailed
196.23 	request is at issue, the commissioner may require the original request to be filed. Where the 
196.24 	commissioner has not identified quality or authenticity of the faxed or emailed request as 
196.25 	an issue and the request has been faxed or emailed in accordance with this subdivision, the 
196.26 	person faxing or emailing the request does not need to file the original request with the 
196.27 	commissioner.

196.28 	EFFECTIVE DATE. This section is effective July 1, 2024.

196.29 	Sec. 19. Minnesota Statutes 2022, section 326B.082, subdivision 6, is amended to read:
196.30 		Subd. 6.Notices of violation. (a) The commissioner may issue a notice of violation to 
196.31 	any person who the commissioner determines has committed a violation of the applicable 
196.32 	law. The notice of violation must state a summary of the facts that constitute the violation 
196.33 	and the applicable law violated. The notice of violation may require the person to correct 
197.1 	the violation. If correction is required, the notice of violation must state the deadline by 
197.2 	which the violation must be corrected.
197.3 	(b) In addition to any person, a notice of violation may be issued to any individual 
197.4 	identified in section 181.723, subdivision 7, paragraph (d). A notice of violation is effective 
197.5 	against any successor person as defined in section 181.723, subdivision 7, paragraph (e).
197.6 	(b) (c) The commissioner shall issue the notice of violation by:
197.7 	(1) serving the notice of violation on the property owner or on the person who committed 
197.8 	the violation; or
197.9 	(2) posting the notice of violation at the location where the violation occurred.
197.10 	(c) (d) If the person to whom the commissioner has issued the notice of violation believes 
197.11 	the notice was issued in error, then the person may request reconsideration of the parts of 
197.12 	the notice that the person believes are in error. The request for reconsideration must be in 
197.13 	writing and must be served on, faxed, or emailed to the commissioner at the address, fax 
197.14 	number, or email address specified in the notice of violation by the tenth day after the 
197.15 	commissioner issued the notice of violation. The date on which a request for reconsideration 
197.16 	is served by mail shall be the postmark date on the envelope in which the request for 
197.17 	reconsideration is mailed. If the person does not serve, fax, or email a written request for 
197.18 	reconsideration or if the person's written request for reconsideration is not served on or 
197.19 	faxed to the commissioner by the tenth day after the commissioner issued the notice of 
197.20 	violation, the notice of violation shall become a final order of the commissioner and will 
197.21 	not be subject to review by any court or agency. The request for reconsideration must:
197.22 	(1) specify which parts of the notice of violation the person believes are in error;
197.23 	(2) explain why the person believes the parts are in error; and
197.24 	(3) provide documentation to support the request for reconsideration.
197.25 	The commissioner shall respond in writing to requests for reconsideration made under 
197.26 	this paragraph within 15 days after receiving the request. A request for reconsideration does 
197.27 	not stay a requirement to correct a violation as set forth in the notice of violation. After 
197.28 	reviewing the request for reconsideration, the commissioner may affirm, modify, or rescind 
197.29 	the notice of violation. The commissioner's response to a request for reconsideration is final 
197.30 	and shall not be reviewed by any court or agency.

197.31 	EFFECTIVE DATE. This section is effective July 1, 2024.

198.1 	Sec. 20. Minnesota Statutes 2022, section 326B.082, subdivision 7, is amended to read:
198.2 		Subd. 7.Administrative orders; correction; assessment of monetary penalties. (a) 
198.3 	The commissioner may issue an administrative order to any person who the commissioner 
198.4 	determines has committed a violation of the applicable law. The commissioner shall issue 
198.5 	the administrative order by serving the administrative order on the person. The administrative 
198.6 	order may require the person to correct the violation, may require the person to cease and 
198.7 	desist from committing the violation, and may assess monetary damages and penalties. The 
198.8 	commissioner shall follow the procedures in section 326B.083 when issuing administrative 
198.9 	orders. Except as provided in paragraph (b), the commissioner may issue to each person a 
198.10 	monetary penalty of up to $10,000 for each violation of applicable law committed by the 
198.11 	person. The commissioner may order that part or all of the monetary penalty will be forgiven 
198.12 	if the person to whom the order is issued demonstrates to the commissioner by the 31st day 
198.13 	after the order is issued that the person has corrected the violation or has developed a 
198.14 	correction plan acceptable to the commissioner.
198.15 	(b) The commissioner may issue an administrative order for failure to correct a violation 
198.16 	by the deadline stated in a final notice of violation issued under subdivision 6 or a final 
198.17 	administrative order issued under paragraph (a). Each day after the deadline during which 
198.18 	the violation remains uncorrected is a separate violation for purposes of calculating the 
198.19 	maximum monetary penalty amount.
198.20 	(c) Upon the application of the commissioner, a district court shall find the failure of 
198.21 	any person to correct a violation as required by a final notice of violation issued under 
198.22 	subdivision 6 or a final administrative order issued by the commissioner under this 
198.23 	subdivision as a contempt of court.
198.24 	(d) In addition to any person, an administrative order may be issued to any individual 
198.25 	identified in section 181.723, subdivision 7, paragraph (d). An administrative order shall 
198.26 	be effective against any successor person as defined in section 181.723, subdivision 7, 
198.27 	paragraph (e).

198.28 	EFFECTIVE DATE. This section is effective July 1, 2024.

198.29 	Sec. 21. Minnesota Statutes 2022, section 326B.082, subdivision 10, is amended to read:
198.30 		Subd. 10.Stop work orders. (a) If the commissioner determines based on an inspection 
198.31 	or investigation that a person has violated or is about to violate the applicable law, The 
198.32 	commissioner may issue to the person a stop work order requiring the person to cease and 
198.33 	desist from committing the violation cessation of all business operations of a person at one 
199.1 	or more of the person's workplaces and places of business or across all of the person's 
199.2 	workplaces and places of business. A stop work order may only be issued to any person 
199.3 	who the commissioner has determined, based on an inspection or investigation, has violated 
199.4 	the applicable law, has engaged in any of the activities under subdivision 11, paragraph (b), 
199.5 	or section 326B.701, subdivision 5, or has failed to comply with a final notice, final 
199.6 	administrative order, or final licensing order issued by the commissioner under this section 
199.7 	or a final order to comply issued by the commissioner under section 177.27, or to any person 
199.8 	identified in paragraph (c).
199.9 	(b) The stop work order is effective upon its issuance under paragraph (e). The order 
199.10 	remains in effect until the commissioner issues an order lifting the stop work order. The 
199.11 	commissioner shall issue an order lifting the stop work order upon finding that the person 
199.12 	has come into compliance with the applicable law, has come into compliance with a final 
199.13 	order or notice of violation issued by the commissioner, has ceased and desisted from 
199.14 	engaging in any of the activities under subdivision 11, paragraph (b), or section 326B.701, 
199.15 	subdivision 5, and has paid any remedies, damages, penalties, and other monetary sanctions, 
199.16 	including wages owed to employees under paragraph (j), to the satisfaction of the 
199.17 	commissioner, or if the commissioner or appellate court modifies or vacates the order.
199.18 	(c) In addition to any person, a stop work order may be issued to any individual identified 
199.19 	in section 181.723, subdivision 7, paragraph (d). The stop work order is effective against 
199.20 	any successor person as defined in section 181.723, subdivision 7, paragraph (e).
199.21 	(b) (d) If the commissioner determines that a condition exists on real property that 
199.22 	violates the applicable law is the basis for issuing a stop work order, the commissioner may 
199.23 	also issue a stop work order to the owner or lessee of the real property to cease and desist 
199.24 	from committing the violation and to correct the condition that is in violationto cease and 
199.25 	desist from committing the violation and to correct the condition that is in violation.
199.26 	(c) (e) The commissioner shall issue the stop work order by:
199.27 	(1) serving the order on the person who has committed or is about to commit the violation;
199.28 	(2) posting the order at the location where the violation was committed or is about to be 
199.29 	committed or at the location where the violating condition exists that is the basis for issuing 
199.30 	the stop work order; or
199.31 	(3) serving the order on any owner or lessee of the real property where the violating 
199.32 	condition exists violations or conditions exist.
199.33 	(d) (f) A stop work order shall:
200.1 	(1) describe the act, conduct, or practice committed or about to be committed, or the 
200.2 	condition, and include a reference to the applicable law that the act, conduct, practice, or 
200.3 	condition violates or would violate, the final order or final notice of violation, the provisions 
200.4 	in subdivision 11, paragraph (b); the provisions in section 326B.701, subdivision 5; or 
200.5 	liability under section 181.165, as applicable; and
200.6 	(2) provide notice that any person aggrieved by the stop work order may request a hearing 
200.7 	as provided in paragraph (e) (g).
200.8 	(e) (g) Within 30 days after the commissioner issues a stop work order, any person 
200.9 	aggrieved by the order may request an expedited hearing to review the commissioner's 
200.10 	action. The request for hearing must be made in writing and must be served on, emailed,
200.11 	or faxed to the commissioner at the address, email address, or fax number specified in the 
200.12 	order. If the person does not request a hearing or if the person's written request for hearing 
200.13 	is not served on, emailed, or faxed to the commissioner on or before the 30th day after the 
200.14 	commissioner issued the stop work order, the order will become a final order of the 
200.15 	commissioner and will not be subject to review by any court or agency. The date on which 
200.16 	a request for hearing is served by mail is the postmark date on the envelope in which the 
200.17 	request for hearing is mailed. The hearing request must specifically state the reasons for 
200.18 	seeking review of the order. The person who requested the hearing and the commissioner 
200.19 	are the parties to the expedited hearing. The hearing shall be commenced within ten days 
200.20 	after the commissioner receives the request for hearing. The hearing shall be conducted 
200.21 	under Minnesota Rules, parts 1400.8510 to 1400.8612, as modified by this subdivision. 
200.22 	The administrative law judge shall issue a report containing findings of fact, conclusions 
200.23 	of law, and a recommended order within ten days after the completion of the hearing, the 
200.24 	receipt of late-filed exhibits, or the submission of written arguments, whichever is later. 
200.25 	Any party aggrieved by the administrative law judge's report shall have five days after the 
200.26 	date of the administrative law judge's report to submit written exceptions and argument to 
200.27 	the commissioner that the commissioner shall consider and enter in the record. Within 15 
200.28 	days after receiving the administrative law judge's report, the commissioner shall issue an 
200.29 	order vacating, modifying, or making permanent the stop work order. The commissioner 
200.30 	and the person requesting the hearing may by agreement lengthen any time periods described 
200.31 	in this paragraph. The Office of Administrative Hearings may, in consultation with the 
200.32 	agency, adopt rules specifically applicable to cases under this subdivision.
200.33 	(f) (h) A stop work order issued under this subdivision shall be is in effect until it is 
200.34 	lifted by the commissioner under paragraph (b) or is modified or vacated by the commissioner 
200.35 	or an appellate court under paragraph (b). The administrative hearing provided by this 
201.1 	subdivision and any appellate judicial review as provided in chapter 14 shall constitute the 
201.2 	exclusive remedy for any person aggrieved by a stop order.
201.3 	(i) The commissioner may assess a civil penalty of $5,000 per day against a person for 
201.4 	each day the person conducts business operations that are in violation of a stop work order 
201.5 	issued under this section.
201.6 	(j) Once a stop work order becomes final, any of the person's employees affected by a 
201.7 	stop work order issued pursuant to this subdivision shall be entitled to average daily earnings 
201.8 	from the person for up to the first ten days of work lost by the employee because of the 
201.9 	issuance of a stop work order. Lifting of a stop work order may be conditioned on payment 
201.10 	of wages to employees. The commissioner may issue an order to comply under section 
201.11 	177.27 to obtain payment from persons liable for the payment of wages owed to the 
201.12 	employees under this section.
201.13 	(g) (k) Upon the application of the commissioner, a district court shall find the failure 
201.14 	of any person to comply with a final stop work order lawfully issued by the commissioner 
201.15 	under this subdivision as a contempt of court.
201.16 	(l) Notwithstanding section 13.39, the data in a stop work order issued under this 
201.17 	subdivision are classified as public data after the commissioner has issued the order.
201.18 	(m) When determining the appropriateness and extent of a stop work order the 
201.19 	commissioner shall consider the factors set forth in section 14.045, subdivision 3.

201.20 	EFFECTIVE DATE. This section is effective March 1, 2025.

201.21 	Sec. 22. Minnesota Statutes 2022, section 326B.082, subdivision 11, is amended to read:
201.22 		Subd. 11.Licensing orders; grounds; reapplication. (a) The commissioner may deny 
201.23 	an application for a permit, license, registration, or certificate if the applicant does not meet 
201.24 	or fails to maintain the minimum qualifications for holding the permit, license, registration, 
201.25 	or certificate, or has any unresolved violations or, unpaid fees, or monetary damages or 
201.26 	penalties related to the activity for which the permit, license, registration, or certificate has 
201.27 	been applied for or was issued.
201.28 	(b) The commissioner may deny, suspend, limit, place conditions on, or revoke a person's 
201.29 	permit, license, registration, or certificate, or censure the person holding or acting as 
201.30 	qualifying person for the permit, license, registration, or certificate, if the commissioner 
201.31 	finds that the person:
201.32 	(1) committed one or more violations of the applicable law;
202.1 	(2) committed one or more violations of chapter 176, 177, 181, 181A, 182, 268, 270C, 
202.2 	or 363A;
202.3 	(2) (3) submitted false or misleading information to the any state agency in connection 
202.4 	with activities for which the permit, license, registration, or certificate was issued, or in 
202.5 	connection with the application for the permit, license, registration, or certificate;
202.6 	(3) (4) allowed the alteration or use of the person's own permit, license, registration, or 
202.7 	certificate by another person;
202.8 	(4) (5) within the previous five years, was convicted of a crime in connection with 
202.9 	activities for which the permit, license, registration, or certificate was issued;
202.10 	(5) (6) violated: (i) a final administrative order issued under subdivision 7, (ii) a final 
202.11 	stop work order issued under subdivision 10, (iii) injunctive relief issued under subdivision 
202.12 	9, or (iv) a consent order, order to comply, or other final order of issued by the commissioner
202.13 	or the commissioner of human rights, employment and economic development, or revenue;
202.14 	(6) (7) delayed, obstructed, or otherwise failed to cooperate with a commissioner's 
202.15 	investigation, including a request to give testimony, to provide data and information, to 
202.16 	produce documents, things, apparatus, devices, equipment, or materials, or to enter and 
202.17 	access all areas of any property under subdivision 2;
202.18 	(7) (8) retaliated in any manner against any employee or person who makes a complaint, 
202.19 	is questioned by, cooperates with, or provides information to the commissioner or an 
202.20 	employee or agent authorized by the commissioner who seeks access to property or things 
202.21 	under subdivision 2;
202.22 	(8) (9) engaged in any fraudulent, deceptive, or dishonest act or practice; or
202.23 	(9) (10) performed work in connection with the permit, license, registration, or certificate 
202.24 	or conducted the person's affairs in a manner that demonstrates incompetence, 
202.25 	untrustworthiness, or financial irresponsibility.
202.26 	(c) In addition to any person, a licensing order may be issued to any individual identified 
202.27 	in section 181.723, subdivision 7, paragraph (d). A licensing order is effective against any 
202.28 	successor person as defined in section 181.723, subdivision 7, paragraph (e).
202.29 	(c) (d) If the commissioner revokes or denies a person's permit, license, registration, or 
202.30 	certificate under paragraph (b), the person is prohibited from reapplying for the same type 
202.31 	of permit, license, registration, or certificate for at least two years after the effective date 
202.32 	of the revocation or denial. The commissioner may, as a condition of reapplication, require 
202.33 	the person to obtain a bond or comply with additional reasonable conditions the commissioner 
203.1 	considers necessary to protect the public, including but not limited to demonstration of 
203.2 	current and ongoing compliance with the laws the violation of which were the basis for 
203.3 	revoking or denying the person's permit, license, registration, or certificate under paragraph 
203.4 	(b) or that the person has ceased and desisted in engaging in activities under paragraph (b) 
203.5 	that were the basis for revoking or denying the person's permit, license, registration, or 
203.6 	certificate under paragraph (b).
203.7 	(d) (e) If a permit, license, registration, or certificate expires, or is surrendered, withdrawn, 
203.8 	or terminated, or otherwise becomes ineffective, the commissioner may institute a proceeding 
203.9 	under this subdivision within two years after the permit, license, registration, or certificate 
203.10 	was last effective and enter a revocation or suspension order as of the last date on which 
203.11 	the permit, license, registration, or certificate was in effect.

203.12 	EFFECTIVE DATE. This section is effective July 1, 2024.

203.13 	Sec. 23. Minnesota Statutes 2022, section 326B.082, subdivision 13, is amended to read:
203.14 		Subd. 13.Summary suspension. In any case where the commissioner has issued an 
203.15 	order to revoke, suspend, or deny a license, registration, certificate, or permit under 
203.16 	subdivisions 11, paragraph (b), and 12, the commissioner may summarily suspend the 
203.17 	person's permit, license, registration, or certificate before the order becomes final. The 
203.18 	commissioner shall issue a summary suspension order when the safety of life or property 
203.19 	is threatened or to prevent the commission of fraudulent, deceptive, untrustworthy, or 
203.20 	dishonest acts against the public, including but not limited to violations of section 181.723, 
203.21 	subdivision 7. The summary suspension shall not affect the deadline for submitting a request 
203.22 	for hearing under subdivision 12. If the commissioner summarily suspends a person's permit, 
203.23 	license, registration, or certificate, a timely request for hearing submitted under subdivision 
203.24 	12 shall also be considered a timely request for hearing on continuation of the summary 
203.25 	suspension. If the commissioner summarily suspends a person's permit, license, registration, 
203.26 	or certificate under this subdivision and the person submits a timely request for a hearing, 
203.27 	then a hearing on continuation of the summary suspension must be held within ten days 
203.28 	after the commissioner receives the request for hearing unless the parties agree to a later 
203.29 	date.

203.30 	EFFECTIVE DATE. This section is effective July 1, 2024.

204.1 	Sec. 24. Minnesota Statutes 2022, section 326B.082, is amended by adding a subdivision 
204.2 	to read:
204.3 		Subd. 16a.Additional penalties and damages. Any person who delays, obstructs, or 
204.4 	otherwise fails to cooperate with the commissioner's investigation may be issued a penalty 
204.5 	of $1,000. Each day of delay, obstruction, or failure to cooperate shall constitute a separate 
204.6 	violation.

204.7 	EFFECTIVE DATE. This section is effective July 1, 2024.

204.8 	Sec. 25. Minnesota Statutes 2022, section 326B.701, is amended to read:
204.9 	326B.701 CONSTRUCTION CONTRACTOR REGISTRATION.
204.10 		Subdivision 1.Definitions. The following definitions apply to this section:
204.11 	(a) "Building construction or improvement services" means public or private sector 
204.12 	commercial or residential building construction or improvement services.
204.13 	(a) (b) "Business entity" means a person other than an individual or a sole proprietor as 
204.14 	that term is defined in paragraph (h), except the term does not include an individual.
204.15 	(c) "Commissioner" means the commissioner of labor and industry or a duly designated 
204.16 	representative of the commissioner who is either an employee of the Department of Labor 
204.17 	and Industry or person working under contract with the Department of Labor and Industry.
204.18 	(d) "Day" means calendar day unless otherwise provided.
204.19 	(e) "Department" means the Department of Labor and Industry.
204.20 	(b) (f) "Document" or "documents" includes papers; books; records; memoranda; data; 
204.21 	contracts; drawings; graphs; charts; photographs; digital, video, and audio recordings; 
204.22 	records; accounts; files; statements; letters; emails; invoices; bills; notes; and calendars 
204.23 	maintained in any form or manner.
204.24 	(g) "Individual" means a human being.
204.25 	(h) "Person" means any individual, sole proprietor, limited liability company, limited 
204.26 	liability partnership, corporation, partnership, incorporated or unincorporated association, 
204.27 	joint stock company, or any other legal or commercial entity.
204.28 		Subd. 2.Applicability; registration requirement. (a) Persons who perform public or 
204.29 	private sector commercial or residential building construction or improvement services as 
204.30 	described in subdivision 2 must register with the commissioner as provided in this section. 
204.31 	The purpose of registration is to assist the Department of Labor and Industry, the Department 
205.1 	of Employment and Economic Development, and the Department of Revenue to enforce 
205.2 	laws related to misclassification of employees.
205.3 	(b) (a) Except as provided in paragraph (c) (b), any person who provides or performs 
205.4 	building construction or improvement services in the state on or after September 15, 2012,
205.5 	of Minnesota must register with the commissioner as provided in this section before providing 
205.6 	or performing building construction or improvement services for another person. The 
205.7 	requirements for registration under this section are not a substitute for, and do not relieve 
205.8 	a person from complying with, any other law requiring that the person be licensed, registered, 
205.9 	or certified.
205.10 	(c) (b) The registration requirements in this section do not apply to:
205.11 	(1) a person who, at the time the person is providing or performing the building
205.12 	construction or improvement services, holds a current license, certificate, or registration 
205.13 	under chapter 299M or 326B;
205.14 	(2) a person who holds a current independent contractor exemption certificate issued 
205.15 	under this section that is in effect on September 15, 2012, except that the person must register 
205.16 	under this section no later than the date the exemption certificate expires, is revoked, or is 
205.17 	canceled;
205.18 	(3) (2) a person who has given a bond to the state under section 326B.197 or 326B.46;
205.19 	(4) (3) an employee of the person providing or performing the building construction or 
205.20 	improvement services, if the person was in compliance with laws related to employment of 
205.21 	the individual at the time the construction services were performed;
205.22 	(5) (4) an architect or professional engineer engaging in professional practice as defined 
205.23 	in section 326.02, subdivisions 2 and 3;
205.24 	(6) (5) a school district or technical college governed under chapter 136F;
205.25 	(7) (6) a person providing or performing building construction or improvement services 
205.26 	on a volunteer basis, including but not limited to Habitat for Humanity and Builders Outreach 
205.27 	Foundation, and their individual volunteers when engaged in activities on their behalf; or
205.28 	(8) (7) a person exempt from licensing under section 326B.805, subdivision 6, clause 
205.29 	(5) (4).
205.30 		Subd. 3.Registration application. (a) Persons required to register under this section 
205.31 	must submit electronically, in the manner prescribed by the commissioner, a complete 
205.32 	application according to paragraphs (b) to (d) this subdivision.
206.1 	(b) A complete application must include all of the following information and 
206.2 	documentation about any individual who is registering as an individual or a sole proprietor, 
206.3 	or who owns 25 percent or more of a business entity being registered the person who is 
206.4 	applying for a registration:
206.5 	(1) the individual's full person's legal name and title at the applicant's business;
206.6 	(2) the person's assumed names filed with the secretary of state, if applicable;
206.7 	(2) (3) the individual's business address and person's telephone number;
206.8 	(3) the percentage of the applicant's business owned by the individual; and
206.9 	(4) the individual's Social Security number.
206.10 	(c) A complete application must also include the following information:
206.11 	(1) the applicant's legal name; assumed name filed with the secretary of state, if any; 
206.12 	designated business address; physical address; telephone number; and email address;
206.13 	(2) the applicant's Minnesota tax identification number, if one is required or has been 
206.14 	issued;
206.15 	(3) the applicant's federal employer identification number, if one is required or has been 
206.16 	issued;
206.17 	(4) evidence of the active status of the applicant's business filings with the secretary of 
206.18 	state, if one is required or has been issued;
206.19 	(5) whether the applicant has any employees at the time the application is filed;
206.20 	(6) the names of all other persons with an ownership interest in the business entity who 
206.21 	are not identified in paragraph (b), and the percentage of the interest owned by each person, 
206.22 	except that the names of shareholders with less than ten percent ownership in a publicly 
206.23 	traded corporation need not be provided;
206.24 	(7) information documenting compliance with workers' compensation and unemployment 
206.25 	insurance laws;
206.26 	(4) the person's email address;
206.27 	(5) the person's business address;
206.28 	(6) the person's physical address, if different from the business address;
207.1 	(7) the legal name, telephone number, and email address of the person's registered agent, 
207.2 	if applicable, and the registered agent's business address and physical address, if different 
207.3 	from the business address;
207.4 	(8) the jurisdiction in which the person is organized, if that jurisdiction is not in 
207.5 	Minnesota, as applicable;
207.6 	(9) the legal name of the person in the jurisdiction in which it is organized, if the legal 
207.7 	name is different than the legal name provided in clause (1), as applicable;
207.8 	(10) all of the following identification numbers, if all of these identification numbers 
207.9 	have been issued to the person. A complete application must include at least one of the 
207.10 	following identification numbers:
207.11 	(i) the person's Social Security number;
207.12 	(ii) the person's Minnesota tax identification number; or
207.13 	(iii) the person's federal employer identification number;
207.14 	(11) evidence of the active status of the person's business filings with the secretary of 
207.15 	state, if applicable;
207.16 	(12) whether the person has any employees at the time the application is filed, and if so, 
207.17 	how many employees the person employs;
207.18 	(13) the legal names of all persons with an ownership interest in the business entity, if 
207.19 	applicable, and the percentage of the interest owned by each person, except that the names 
207.20 	of shareholders with less than ten percent ownership in a publicly traded corporation need 
207.21 	not be provided;
207.22 	(14) information documenting the person's compliance with workers' compensation and 
207.23 	unemployment insurance laws for the person's employees, if applicable;
207.24 	(15) whether the person or any persons with an ownership interest in the business entity 
207.25 	as disclosed under clause (13) have been issued a notice of violation, administrative order, 
207.26 	licensing order, or order to comply by the Department of Labor and Industry in the last ten 
207.27 	years;
207.28 	(8) (16) a certification that the person individual signing the application has: reviewed 
207.29 	it; determined asserts that the information and documentation provided is true and accurate; 
207.30 	and determined that the person signing individual is authorized to sign and file the application 
207.31 	as an agent or authorized representative of the applicant person. The name of the person
208.1 	individual signing, entered on an electronic application, shall constitute a valid signature 
208.2 	of the agent or authorized representative on behalf of the applicant person; and
208.3 	(9) (17) a signed authorization for the Department of Labor and Industry to verify the 
208.4 	information and documentation provided on or with the application.
208.5 	(d) (c) A registered person must notify the commissioner within 15 days after there is a 
208.6 	change in any of the information on the application as approved. This notification must be 
208.7 	provided electronically in the manner prescribed by the commissioner. However, if the 
208.8 	business entity structure or legal form of the business entity has changed, the person must 
208.9 	submit a new registration application and registration fee, if any, for the new business entity.
208.10 	(e) The registered (d) A person must remain registered maintain a current and up-to-date 
208.11 	registration while providing or performing building construction or improvement services 
208.12 	for another person. The provisions of sections 326B.091, 326B.094, 326B.095, and 326B.097
208.13 	apply to this section. A person with an expired registration shall not provide construction 
208.14 	services for another person if registration is required under this section. Registration 
208.15 	application and expiration time frames are as follows:
208.16 	(1) all registrations issued on or before December 31, 2015, expire on December 31, 
208.17 	2015;
208.18 	(2) (1) all registrations issued after December 31, 2015, expire on the following December 
208.19 	31 of each odd-numbered year; and
208.20 	(3) (2) a person may submit a registration or renewal application starting October 1 of 
208.21 	the year the registration expires. If a renewal application is submitted later than December 
208.22 	1 of the expiration year, the registration may expire before the department has issued or 
208.23 	denied the registration renewal.
208.24 		Subd. 4.Website. (a) The commissioner shall develop and maintain a website on which 
208.25 	applicants for registration persons can submit a registration or renewal application. The 
208.26 	website shall be designed to receive and process registration applications and promptly 
208.27 	issue registration certificates electronically to successful applicants.
208.28 	(b) The commissioner shall maintain the certificates of registration on the department's 
208.29 	official public website, which shall include the following information on the department's 
208.30 	official public website:
208.31 	(1) the registered person's legal business name, including any assumed name, as filed 
208.32 	with the secretary of state;
208.33 	(2) the legal names of the persons with an ownership interest in the business entity;
209.1 	(2) (3) the registered person's business address designated and physical address, if 
209.2 	different from the business address, provided on the application; and
209.3 	(3) (4) the effective date of the registration and the expiration date.
209.4 		Subd. 5.Prohibited activities related to registration. (a) The prohibited activities in 
209.5 	this subdivision are in addition to those prohibited in sections 326B.081 to 326B.085 section 
209.6 	326B.082, subdivision 11.
209.7 	(b) A person who provides or performs building construction or improvement services 
209.8 	in the course of the person's trade, business, occupation, or profession shall not:
209.9 	(1) contract with provide or perform building construction or improvement services for 
209.10 	another person without first being registered, if required by to be registered under this 
209.11 	section;
209.12 	(2) require an individual who is the person's employee to register; or
209.13 	(2) contract with or pay (3) engage another person to provide or perform building 
209.14 	construction or improvement services if the other person is required to be registered under 
209.15 	this section and is not registered if required by subdivision 2. All payments to an unregistered 
209.16 	person for construction services on a single project site shall be considered a single violation. 
209.17 	It is not a violation of this clause:
209.18 	(i) for a person to contract with or pay have engaged an unregistered person if the 
209.19 	unregistered person was registered at the time the contract for construction services was 
209.20 	entered into held a current registration on the date they began providing or performing the 
209.21 	building construction or improvement services; or
209.22 	(ii) for a homeowner or business to contract with or pay engage an unregistered person 
209.23 	if the homeowner or business is not in the trade, business, profession, or occupation of 
209.24 	performing building construction or improvement services; or.
209.25 	(3) be penalized for violations of this subdivision that are committed by another person. 
209.26 	This clause applies only to violations of this paragraph.
209.27 	(c) Each day a person who is required to be registered provides or performs building 
209.28 	construction or improvement services while unregistered shall be considered a separate 
209.29 	violation.
209.30 		Subd. 6.Investigation and enforcement; remedies; and penalties. (a) Notwithstanding 
209.31 	the maximum penalty amount in section 326B.082, subdivisions 7 and 12, the maximum 
210.1 	penalty for failure to register is $2,000, but the commissioner shall forgive the penalty if 
210.2 	the person registers within 30 days of the date of the penalty order.
210.3 	(b) The penalty for contracting with or paying an unregistered person to perform 
210.4 	construction services in violation of subdivision 5, paragraph (b), clause (2), shall be as 
210.5 	provided in section 326B.082, subdivisions 7 and 12, but the commissioner shall forgive 
210.6 	the penalty for the first violation.
210.7 	The commissioner may investigate and enforce this section under the authority in chapters 
210.8 	177 and 326B.
210.9 		Subd. 7.Notice requirement. Notice of a penalty order for failure to register must 
210.10 	include a statement that the penalty shall be forgiven if the person registers within 30 days 
210.11 	of the date of the penalty order.
210.12 		Subd. 8.Data classified. Data in applications and any required documentation submitted 
210.13 	to the commissioner under this section are private data on individuals or nonpublic data as 
210.14 	defined in section 13.02. Data in registration certificates issued by the commissioner are 
210.15 	public data; except that for the registration information published on the department's website 
210.16 	may be accessed for registration verification purposes only. Data that document a suspension, 
210.17 	revocation, or cancellation of a certificate registration are public data. Upon request of
210.18 	Notwithstanding its classification as private data on individuals or nonpublic data, data in 
210.19 	applications and any required documentation submitted to the commissioner under this 
210.20 	section may be used by the commissioner to investigate and take enforcement action related 
210.21 	to laws for which the commissioner has enforcement responsibility and the commissioner 
210.22 	may share data and documentation with the Department of Revenue, the Department of 
210.23 	Commerce, the Department of Human Rights, or the Department of Employment and 
210.24 	Economic Development,. The commissioner may release to the requesting department
210.25 	departments data classified as private or nonpublic under this subdivision or investigative 
210.26 	data that are not public under section 13.39 that relate to the issuance or denial of applications 
210.27 	or revocations of certificates prohibited activities under this section and section 181.723.

210.28 	EFFECTIVE DATE. This section is effective July 1, 2024.

211.1 	ARTICLE 11
211.2 	EARNED SICK AND SAFE TIME MODIFICATIONS

211.3 	Section 1. Minnesota Statutes 2023 Supplement, section 177.27, subdivision 4, is amended 
211.4 	to read:
211.5 		Subd. 4.Compliance orders. The commissioner may issue an order requiring an 
211.6 	employer to comply with sections 177.21 to 177.435, 177.50, 179.86, 181.02, 181.03, 
211.7 	181.031, 181.032, 181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.165, 181.172, 
211.8 	paragraph (a) or (d), 181.214 to 181.217, 181.275, subdivision 2a, 181.635, 181.722, 181.79, 
211.9 	181.85 to 181.89, 181.939 to 181.943, 181.9445 to 181.9448, 181.987, 181.991, 268B.09, 
211.10 	subdivisions 1 to 6, and 268B.14, subdivision 3, with any rule promulgated under section 
211.11 	177.28, 181.213, or 181.215. The commissioner shall issue an order requiring an employer 
211.12 	to comply with sections 177.41 to 177.435, 181.165, or 181.987 if the violation is repeated. 
211.13 	For purposes of this subdivision only, a violation is repeated if at any time during the two 
211.14 	years that preceded the date of violation, the commissioner issued an order to the employer 
211.15 	for violation of sections 177.41 to 177.435, 181.165, or 181.987 and the order is final or 
211.16 	the commissioner and the employer have entered into a settlement agreement that required 
211.17 	the employer to pay back wages that were required by sections 177.41 to 177.435. The 
211.18 	department shall serve the order upon the employer or the employer's authorized 
211.19 	representative in person or by certified mail at the employer's place of business. An employer 
211.20 	who wishes to contest the order must file written notice of objection to the order with the 
211.21 	commissioner within 15 calendar days after being served with the order. A contested case 
211.22 	proceeding must then be held in accordance with sections 14.57 to 14.69 or 181.165. If, 
211.23 	within 15 calendar days after being served with the order, the employer fails to file a written 
211.24 	notice of objection with the commissioner, the order becomes a final order of the 
211.25 	commissioner. For the purposes of this subdivision, an employer includes a contractor that 
211.26 	has assumed a subcontractor's liability within the meaning of section 181.165.

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

211.28 	Sec. 2. Minnesota Statutes 2023 Supplement, section 177.50, is amended by adding a 
211.29 	subdivision to read:
211.30 		Subd. 6.Rulemaking authority. The commissioner may adopt rules to carry out the 
211.31 	purposes of this section and sections 181.9445 to 181.9448.

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

212.1 	Sec. 3. Minnesota Statutes 2023 Supplement, section 177.50, is amended by adding a 
212.2 	subdivision to read:
212.3 		Subd. 7.Remedies. (a) If an employer does not provide earned sick and safe time 
212.4 	pursuant to section 181.9446, or does not allow the use of earned sick and safe time pursuant 
212.5 	to section 181.9447, the employer is liable to all employees who were not provided or not 
212.6 	allowed to use earned sick and safe time for an amount equal to all earned sick and safe 
212.7 	time that should have been provided or could have been used, plus an additional equal 
212.8 	amount as liquidated damages.
212.9 	(b) If the employer does not possess records sufficient to determine the earned sick and 
212.10 	safe time an employee should have been provided pursuant to paragraph (a), the employer 
212.11 	is liable to the employee for an amount equal to 48 hours of earned sick and safe time  for 
212.12 	each year earned sick and safe time was not provided, plus an additional equal amount as 
212.13 	liquidated damages.

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

212.15 	Sec. 4. Minnesota Statutes 2023 Supplement, section 181.032, is amended to read:
212.16 	181.032 REQUIRED STATEMENT OF EARNINGS BY EMPLOYER; NOTICE 
212.17 	TO EMPLOYEE.
212.18 	(a) At the end of each pay period, the employer shall provide each employee an earnings 
212.19 	statement, either in writing or by electronic means, covering that pay period. An employer 
212.20 	who chooses to provide an earnings statement by electronic means must provide employee 
212.21 	access to an employer-owned computer during an employee's regular working hours to 
212.22 	review and print earnings statements, and must make statements available for review or 
212.23 	printing for a period of three years.
212.24 	(b) The earnings statement may be in any form determined by the employer but must 
212.25 	include:
212.26 	(1) the name of the employee;
212.27 	(2) the rate or rates of pay and basis thereof, including whether the employee is paid by 
212.28 	hour, shift, day, week, salary, piece, commission, or other method;
212.29 	(3) allowances, if any, claimed pursuant to permitted meals and lodging;
212.30 	(4) the total number of hours worked by the employee unless exempt from chapter 177;
212.31 	(5) the total number of earned sick and safe time hours accrued and available for use 
212.32 	under section 181.9446;
213.1 	(6) the total number of earned sick and safe time hours used during the pay period under 
213.2 	section 181.9447;
213.3 	(7) (5) the total amount of gross pay earned by the employee during that period;
213.4 	(8) (6) a list of deductions made from the employee's pay;
213.5 	(9) (7) any amount deducted by the employer under section 268B.14, subdivision 3, and 
213.6 	the amount paid by the employer based on the employee's wages under section 268B.14, 
213.7 	subdivision 1;
213.8 	(10) (8) the net amount of pay after all deductions are made;
213.9 	(11) (9) the date on which the pay period ends;
213.10 	(12) (10) the legal name of the employer and the operating name of the employer if 
213.11 	different from the legal name;
213.12 	(13) (11) the physical address of the employer's main office or principal place of business, 
213.13 	and a mailing address if different; and
213.14 	(14) (12) the telephone number of the employer.
213.15 	(c) An employer must provide earnings statements to an employee in writing, rather 
213.16 	than by electronic means, if the employer has received at least 24 hours notice from an 
213.17 	employee that the employee would like to receive earnings statements in written form. Once 
213.18 	an employer has received notice from an employee that the employee would like to receive 
213.19 	earnings statements in written form, the employer must comply with that request on an 
213.20 	ongoing basis.
213.21 	(d) At the start of employment, an employer shall provide each employee a written notice 
213.22 	containing the following information:
213.23 	(1) the rate or rates of pay and basis thereof, including whether the employee is paid by 
213.24 	the hour, shift, day, week, salary, piece, commission, or other method, and the specific 
213.25 	application of any additional rates;
213.26 	(2) allowances, if any, claimed pursuant to permitted meals and lodging;
213.27 	(3) paid vacation, sick time, or other paid time-off accruals and terms of use;
213.28 	(4) the employee's employment status and whether the employee is exempt from minimum 
213.29 	wage, overtime, and other provisions of chapter 177, and on what basis;
213.30 	(5) a list of deductions that may be made from the employee's pay;
214.1 	(6) the number of days in the pay period, the regularly scheduled pay day, and the pay 
214.2 	day on which the employee will receive the first payment of wages earned;
214.3 	(7) the legal name of the employer and the operating name of the employer if different 
214.4 	from the legal name;
214.5 	(8) the physical address of the employer's main office or principal place of business, and 
214.6 	a mailing address if different; and
214.7 	(9) the telephone number of the employer.
214.8 	(e) The employer must keep a copy of the notice under paragraph (d) signed by each 
214.9 	employee acknowledging receipt of the notice. The notice must be provided to each employee 
214.10 	in English. The English version of the notice must include text provided by the commissioner 
214.11 	that informs employees that they may request, by indicating on the form, the notice be 
214.12 	provided in a particular language. If requested, the employer shall provide the notice in the 
214.13 	language requested by the employee. The commissioner shall make available to employers 
214.14 	the text to be included in the English version of the notice required by this section and assist 
214.15 	employers with translation of the notice in the languages requested by their employees.
214.16 	(f) An employer must provide the employee any written changes to the information 
214.17 	contained in the notice under paragraph (d) prior to the date the changes take effect.

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

214.19 	Sec. 5. Minnesota Statutes 2023 Supplement, section 181.9445, subdivision 4, is amended 
214.20 	to read:
214.21 		Subd. 4.Earned sick and safe time. "Earned sick and safe time" means leave, including 
214.22 	paid time off and other paid leave systems, that is paid at the same hourlybase rate as an 
214.23 	employee earns from employment that may be used for the same purposes and under the 
214.24 	same conditions as provided under section 181.9447, but in no case shall this hourlybase
214.25 	rate be less than that provided under section 177.24 or an applicable local minimum wage.

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

214.27 	Sec. 6. Minnesota Statutes 2023 Supplement, section 181.9445, is amended by adding a 
214.28 	subdivision to read:
214.29 		Subd. 4a.Base rate. "Base rate" means:
214.30 	(1) for employees paid on an hourly basis, the same rate received per hour of work;
215.1 	(2) for employees paid on an hourly basis who receive multiple hourly rates, the rate 
215.2 	the employee would have been paid for the period of time in which leave was taken;
215.3 	(3) for employees paid on a salary basis, the same rate guaranteed to the employee as if 
215.4 	the employee had not taken the leave; and
215.5 	(4) for employees paid solely on a commission, piecework, or any basis other than hourly 
215.6 	or salary, a rate no less than the applicable local, state, or federal minimum wage, whichever 
215.7 	is greater.
215.8 	For purposes of this section and section 181.9446, base rate does not include commissions; 
215.9 	shift differentials that are in addition to an hourly rate; premium payments for overtime 
215.10 	work; premium payments for work on Saturdays, Sundays, holidays, or scheduled days off; 
215.11 	bonuses; or gratuities as defined by section 177.23.

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

215.13 	Sec. 7. Minnesota Statutes 2023 Supplement, section 181.9445, subdivision 5, is amended 
215.14 	to read:
215.15 		Subd. 5.Employee. "Employee" means any person who is employed by an employer, 
215.16 	including temporary and part-time employees, who performs is anticipated by the employer 
215.17 	to perform work for at least 80 hours in a year for that employer in Minnesota. Employee 
215.18 	does not include:
215.19 	(1) an independent contractor; or
215.20 	(2) an individual who is a volunteer firefighter or paid on-call firefighter, with a 
215.21 	department charged with the prevention or suppression of fires within the boundaries of the 
215.22 	state; is a volunteer ambulance attendant as defined in section 144E.001, subdivision 15; 
215.23 	or is an ambulance service personnel as defined in section 144E.001, subdivision 3a, who 
215.24 	serves in a paid on-call position;
215.25 	(3) an individual who is an elected official or a person who is appointed to fill a vacancy 
215.26 	in an elected office as part of a legislative or governing body of Minnesota or a political 
215.27 	subdivision; or
215.28 	(4) an individual employed by a farmer, family farm, or a family farm corporation to 
215.29 	provide physical labor on or management of a farm if the farmer, family farm, or family 
215.30 	farm corporation employs the individual to perform work for 28 days or less each year.
215.31 	(2) an individual employed by an air carrier as a flight deck or cabin crew member who:
215.32 	(i) is subject to United States Code, title 45, sections 181 to 188;
216.1 	(ii) works less than a majority of their hours in Minnesota in a calendar year; and
216.2 	(iii) is provided with paid leave equal to or exceeding the amounts in section 181.9446.

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

216.4 	Sec. 8. Minnesota Statutes 2023 Supplement, section 181.9446, is amended to read:
216.5 	181.9446 ACCRUAL OF EARNED SICK AND SAFE TIME.
216.6 	(a) An employee accrues a minimum of one hour of earned sick and safe time for every 
216.7 	30 hours worked up to a maximum of 48 hours of earned sick and safe time in a year. 
216.8 	Employees may not accrue more than 48 hours of earned sick and safe time in a year unless 
216.9 	the employer agrees to a higher amount.
216.10 	(b)(1) Except as provided in clause (2), employers must permit an employee to carry 
216.11 	over accrued but unused sick and safe time into the following year. The total amount of 
216.12 	accrued but unused earned sick and safe time for an employee must not exceed 80 hours at 
216.13 	any time, unless an employer agrees to a higher amount.
216.14 	(2) In lieu of permitting the carryover of accrued but unused sick and safe time into the 
216.15 	following year as provided under clause (1), an employer may provide an employee with 
216.16 	earned sick and safe time for the year that meets or exceeds the requirements of this section 
216.17 	that is available for the employee's immediate use at the beginning of the subsequent year 
216.18 	as follows: (i) 48 hours, if an employer pays an employee for accrued but unused sick and 
216.19 	safe time at the end of a year at the same hourlybase rate as an employee earns from 
216.20 	employment  and in no case at a rate less than that provided under section 177.24 or an 
216.21 	applicable local minimum wage; or (ii) 80 hours, if an employer does not pay an employee 
216.22 	for accrued but unused sick and safe time at the end of a year at the same or greater hourly 
216.23 	rate as an employee earns from employment. In no case shall this hourly rate be less than 
216.24 	that provided under section 177.24, or an applicable local minimum wage.
216.25 	(c) Employees who are exempt from overtime requirements under United States Code, 
216.26 	title 29, section 213(a)(1), as amended through January 1, 2024, are deemed to work 40 
216.27 	hours in each workweek for purposes of accruing earned sick and safe time, except that an 
216.28 	employee whose normal workweek is less than 40 hours will accrue earned sick and safe 
216.29 	time based on the normal workweek.
216.30 	(d) Earned sick and safe time under this section begins to accrue at the commencement 
216.31 	of employment of the employee.
216.32 	(e) Employees may use earned sick and safe time as it is accrued.

217.1 	Sec. 9. Minnesota Statutes 2023 Supplement, section 181.9447, subdivision 1, is amended 
217.2 	to read:
217.3 		Subdivision 1.Eligible use. An employee may use accrued earned sick and safe time 
217.4 	for:
217.5 	(1) an employee's:
217.6 	(i) mental or physical illness, injury, or other health condition;
217.7 	(ii) need for medical diagnosis, care, or treatment of a mental or physical illness, injury, 
217.8 	or health condition; or
217.9 	(iii) need for preventive medical or health care; or
217.10 	(iv) need to make arrangements for or attend funeral services or a memorial, or address 
217.11 	financial or legal matters that arise after the death of a family member;
217.12 	(2) care of a family member:
217.13 	(i) with a mental or physical illness, injury, or other health condition;
217.14 	(ii) who needs medical diagnosis, care, or treatment of a mental or physical illness, 
217.15 	injury, or other health condition; or
217.16 	(iii) who needs preventive medical or health care;
217.17 	(3) absence due to domestic abuse, sexual assault, or stalking of the employee or 
217.18 	employee's family member, provided the absence is to:
217.19 	(i) seek medical attention related to physical or psychological injury or disability caused 
217.20 	by domestic abuse, sexual assault, or stalking;
217.21 	(ii) obtain services from a victim services organization;
217.22 	(iii) obtain psychological or other counseling;
217.23 	(iv) seek relocation or take steps to secure an existing home due to domestic abuse, 
217.24 	sexual assault, or stalking; or
217.25 	(v) seek legal advice or take legal action, including preparing for or participating in any 
217.26 	civil or criminal legal proceeding related to or resulting from domestic abuse, sexual assault, 
217.27 	or stalking;
217.28 	(4) closure of the employee's place of business due to weather or other public emergency 
217.29 	or an employee's need to care for a family member whose school or place of care has been 
217.30 	closed due to weather or other public emergency;
218.1 	(5) the employee's inability to work or telework because the employee is: (i) prohibited 
218.2 	from working by the employer due to health concerns related to the potential transmission 
218.3 	of a communicable illness related to a public emergency; or (ii) seeking or awaiting the 
218.4 	results of a diagnostic test for, or a medical diagnosis of, a communicable disease related 
218.5 	to a public emergency and such employee has been exposed to a communicable disease or 
218.6 	the employee's employer has requested a test or diagnosis; and
218.7 	(6) when it has been determined by the health authorities having jurisdiction or by a 
218.8 	health care professional that the presence of the employee or family member of the employee 
218.9 	in the community would jeopardize the health of others because of the exposure of the 
218.10 	employee or family member of the employee to a communicable disease, whether or not 
218.11 	the employee or family member has actually contracted the communicable disease.
218.12 	For the purposes of this subdivision, a public emergency shall include a declared 
218.13 	emergency as defined in section 12.03 or a declared local emergency under section 12.29.

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

218.15 	Sec. 10. Minnesota Statutes 2023 Supplement, section 181.9447, subdivision 3, is amended 
218.16 	to read:
218.17 		Subd. 3.Documentation. (a) When an employee uses earned sick and safe time for 
218.18 	more than three consecutive scheduled work days, an employer may require reasonable 
218.19 	documentation that the earned sick and safe time is covered by subdivision 1.
218.20 	(b) For earned sick and safe time under subdivision 1, clauses (1), (2), (5), and (6), 
218.21 	reasonable documentation may include a signed statement by a health care professional 
218.22 	indicating the need for use of earned sick and safe time. However, if the employee or 
218.23 	employee's family member did not receive services from a health care professional, or if 
218.24 	documentation cannot be obtained from a health care professional in a reasonable time or 
218.25 	without added expense, then reasonable documentation for the purposes of this paragraph 
218.26 	may include a written statement from the employee indicating that the employee is using 
218.27 	or used earned sick and safe time for a qualifying purpose covered by subdivision 1, clause 
218.28 	(1), (2), (5), or (6).
218.29 	(c) For earned sick and safe time under subdivision 1, clause (3), an employer must 
218.30 	accept a court record or documentation signed by a volunteer or employee of a victims 
218.31 	services organization, an attorney, a police officer, or an antiviolence counselor as reasonable 
218.32 	documentation. If documentation cannot be obtained in a reasonable time or without added 
218.33 	expense, then reasonable documentation for the purposes of this paragraph may include a 
219.1 	written statement from the employee indicating that the employee is using or used earned 
219.2 	sick and safe time for a qualifying purpose covered under subdivision 1, clause (3).
219.3 	(d) For earned sick and safe time to care for a family member under subdivision 1, clause 
219.4 	(4), an employer must accept as reasonable documentation a written statement from the 
219.5 	employee indicating that the employee is using or used earned sick and safe time for a 
219.6 	qualifying purpose as reasonable documentation.
219.7 	(e) An employer must not require disclosure of details relating to domestic abuse, sexual 
219.8 	assault, or stalking or the details of an employee's or an employee's family member's medical 
219.9 	condition as related to an employee's request to use earned sick and safe time under this 
219.10 	section.
219.11 	(f) Written statements by an employee may be written in the employee's first language 
219.12 	and need not be notarized or in any particular format.

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

219.14 	Sec. 11. Minnesota Statutes 2023 Supplement, section 181.9447, subdivision 5, is amended 
219.15 	to read:
219.16 		Subd. 5.Increment of time used. Earned sick and safe time may be used in the smallest 
219.17 	increment of time tracked by the employer's payroll system, provided such increment is not 
219.18 	more than four hours same increment of time for which employees are paid, provided an 
219.19 	employer is not required to provide leave in less than 15-minute increments nor can the 
219.20 	employer require use of earned sick and safe time in more than four-hour increments.

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

219.22 	Sec. 12. Minnesota Statutes 2023 Supplement, section 181.9447, subdivision 10, is amended 
219.23 	to read:
219.24 		Subd. 10.Employer records and required statement to employees. (a) Employers 
219.25 	shall retain accurate records documenting hours worked by employees and earned sick and 
219.26 	safe time taken and comply with all requirements under section 177.30.
219.27 	(b) At the end of each pay period, the employer shall provide, in writing or electronically, 
219.28 	information stating the employee's current amount of:
219.29 	(1) the total number of earned sick and safe time hours available to the employee for 
219.30 	use under section 181.9446; and
220.1 	(2) the total number of earned sick and safe time hours used during the pay period under 
220.2 	section 181.9447.
220.3 	Employers may choose a reasonable system for providing this information, including 
220.4 	but not limited to listing information on or attached to each earnings statement or an 
220.5 	electronic system where employees can access this information. An employer who chooses 
220.6 	to provide this information by electronic means must provide employee access to an 
220.7 	employer-owned computer during an employee's regular working hours to review and print.
220.8 	(b) (c) An employer must allow an employee to inspect records required by this section 
220.9 	and relating to that employee at a reasonable time and place.
220.10 	(d) The records required by this section must be kept for three years.
220.11 	(e) All records required to be kept under this section must be readily available for 
220.12 	inspection by the commissioner upon demand. The records must be either kept at the place 
220.13 	where employees are working or kept in a manner that allows the employer to comply with 
220.14 	this paragraph within 72 hours.

220.15 	Sec. 13. Minnesota Statutes 2023 Supplement, section 181.9447, subdivision 11, is amended 
220.16 	to read:
220.17 		Subd. 11.Confidentiality and nondisclosure. (a) If, in conjunction with this section, 
220.18 	an employer possesses:
220.19 	(1) health or medical information regarding an employee or an employee's family 
220.20 	member;
220.21 	(2) information pertaining to domestic abuse, sexual assault, or stalking;
220.22 	(3) information that the employee has requested or obtained leave under this section; or
220.23 	(4) any written or oral statement, documentation, record, or corroborating evidence 
220.24 	provided by the employee or an employee's family member, the employer must treat such 
220.25 	information as confidential.
220.26 	Information given by an employee may only be disclosed by an employer if the disclosure 
220.27 	is requested or consented to by the employee, when ordered by a court or administrative 
220.28 	agency, or when otherwise required by federal or state law.
220.29 	(b) Records and documents relating to medical certifications, recertifications, or medical 
220.30 	histories of employees or family members of employees created for purposes of section 
220.31 	177.50 or sections 181.9445 to 181.9448 must be maintained as confidential medical records 
220.32 	separate from the usual personnel files. At the request of the employee, the employer must 
221.1 	destroy or return the records required by sections 181.9445 to 181.9448 that are older than 
221.2 	three years prior to the current calendar year, unless state or federal law, rule, or regulation 
221.3 	requires the employer to retain such records.
221.4 	(c) Employers may not discriminate against any employee based on records created for 
221.5 	the purposes of section 177.50 or sections 181.9445 to 181.9448.

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

221.7 	Sec. 14. Minnesota Statutes 2023 Supplement, section 181.9447, is amended by adding 
221.8 	a subdivision to read:
221.9 		Subd. 12.Weather event exception. Notwithstanding subdivision 1, an employee may 
221.10 	not use sick and safe time under the conditions in subdivision 1, clause (4), if:
221.11 	(1) the employee's preassigned or foreseeable work duties during a public emergency 
221.12 	or weather event would require the employee to respond to the public emergency or weather 
221.13 	event;
221.14 	(2) the employee is a firefighter; a peace officer subject to licensure under sections 
221.15 	626.84 to 626.863; a 911 telecommunicator as defined in section 403.02, subdivision 17c; 
221.16 	a guard at a correctional facility; or a public employee holding a commercial driver's license; 
221.17 	and
221.18 	(3) one of the following two conditions are met:
221.19 	(i) the employee is represented by an exclusive representative under section 179A.03, 
221.20 	subdivision 8, and the collective bargaining agreement or memorandum of understanding 
221.21 	governing the employee's position explicitly references section 181.9447, subdivision 1, 
221.22 	clause (4), and clearly and unambiguously waives application of that section for the 
221.23 	employee's position; or
221.24 	(ii) the employee is not represented by an exclusive representative, the employee is 
221.25 	needed for the employer to maintain minimum staffing requirements, and the employer has 
221.26 	a written policy explicitly referencing section 181.9447, subdivision 1, clause (4), that is 
221.27 	provided to such employees in a manner that meets the requirements of other earned sick 
221.28 	and safe time notices under section 181.9447, subdivision 9.

222.1 	Sec. 15. Minnesota Statutes 2023 Supplement, section 181.9448, subdivision 1, is amended 
222.2 	to read:
222.3 		Subdivision 1.No Effect on more generous sick and safe time policies. (a) Nothing 
222.4 	in sections 181.9445 to 181.9448 shall be construed to discourage employers from adopting 
222.5 	or retaining earned sick and safe time policies that meet or exceed, and do not otherwise 
222.6 	conflict with, the minimum standards and requirements provided in sections 181.9445 to 
222.7 	181.9448. All paid time off and other paid leave made available to an employee by an 
222.8 	employer in excess of the minimum amount required in section 181.9446 for absences from 
222.9 	work due to personal illness or injury, but not including short-term or long-term disability 
222.10 	or other salary continuation benefits, must meet or exceed the minimum standards and 
222.11 	requirements provided in sections 181.9445 to 181.9448, except for section 181.9446. For 
222.12 	paid leave accrued prior to January 1, 2024, for absences from work due to personal illness 
222.13 	or injury, an employer may require an employee who uses such leave to follow the written 
222.14 	notice and documentation requirements in the employer's applicable policy or applicable 
222.15 	collective bargaining agreement as of December 31, 2023, in lieu of the requirements of 
222.16 	section 181.9447, subdivisions 2 and 3, provided that an employer does not require an 
222.17 	employee to use leave accrued on or after January 1, 2024, before using leave accrued prior 
222.18 	to that date.
222.19 	(b) Nothing in sections 181.9445 to 181.9448 shall be construed to limit the right of 
222.20 	parties to a collective bargaining agreement to bargain and agree with respect to earned sick 
222.21 	and safe time policies or to diminish the obligation of an employer to comply with any 
222.22 	contract, collective bargaining agreement, or any employment benefit program or plan that 
222.23 	meets or exceeds, and does not otherwise conflict with, the minimum standards and 
222.24 	requirements provided in this section.
222.25 	(c) Nothing in sections 181.9445 to 181.9448 shall be construed to preempt, limit, or 
222.26 	otherwise affect the applicability of any other law, regulation, requirement, policy, or 
222.27 	standard that provides for a greater amount, accrual, or use by employees of paid sick and 
222.28 	safe time or that extends other protections to employees.
222.29 	(d) Nothing in sections 181.9445 to 181.9448 shall be construed or applied so as to 
222.30 	create any power or duty in conflict with federal law.
222.31 	(e) Employers who provide earned sick and safe time to their employees under a paid 
222.32 	time off policy or other paid leave policy that may be used for the same purposes and under 
222.33 	the same conditions as earned sick and safe time, and that meets or exceeds, and does not 
223.1 	otherwise conflict with, the minimum standards and requirements provided in sections 
223.2 	181.9445 to 181.9448 are not required to provide additional earned sick and safe time.
223.3 	(f) The provisions of sections 181.9445 to 181.9448 may be waived by a collective 
223.4 	bargaining agreement with a bona fide building and construction trades labor organization 
223.5 	that has established itself as the collective bargaining representative for the affected building 
223.6 	and construction industry employees, provided that for such waiver to be valid, it shall 
223.7 	explicitly reference sections 181.9445 to 181.9448 and clearly and unambiguously waive 
223.8 	application of those sections to such employees.
223.9 	(g) The requirements of section 181.9447, subdivision 3, may be waived for paid leave 
223.10 	made available to an employee by an employer for absences from work in excess of the 
223.11 	minimum amount required in section 181.9446 through a collective bargaining agreement 
223.12 	with a labor organization that has established itself as the collective bargaining representative 
223.13 	for the employees, provided that for such waiver to be valid, it shall explicitly reference 
223.14 	section 181.9447, subdivision 3, and clearly and unambiguously waive application of that 
223.15 	subdivision to such employees.
223.16 	(h) An individual provider, as defined in section 256B.0711, subdivision 1, paragraph 
223.17 	(d), who provides services through a consumer support grant under section 256.476, 
223.18 	consumer-directed community supports under section 256B.4911, or community first services 
223.19 	and supports under section 256B.85, to a family member who is a participant, as defined 
223.20 	in section 256B.0711, subdivision 1, paragraph (e), may individually waive the provisions 
223.21 	of sections 181.9445 to 181.9448 for the remainder of the participant's service plan year, 
223.22 	provided that the funds are returned to the participant's budget. Once an individual provider 
223.23 	has waived the provisions of sections 181.9445 to 181.9448, they may not accrue earned 
223.24 	sick and safe time until the start of the participant's next service plan year.
223.25 	(g) (i) Sections 181.9445 to 181.9448 do not prohibit an employer from establishing a 
223.26 	policy whereby employees may donate unused accrued sick and safe time to another 
223.27 	employee.
223.28 	(h) (j) Sections 181.9445 to 181.9448 do not prohibit an employer from advancing sick 
223.29 	and safe time to an employee before accrual by the employee.

223.30 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
223.31 	paragraph (a) is effective January 1, 2025.

224.1 	Sec. 16. Minnesota Statutes 2023 Supplement, section 181.9448, subdivision 2, is amended 
224.2 	to read:
224.3 		Subd. 2.Termination; separation; transfer. Sections 181.9445 to 181.9448 do not 
224.4 	require financial or other reimbursement to an employee from an employer upon the 
224.5 	employee's termination, resignation, retirement, or other separation from employment for 
224.6 	accrued earned sick and safe time that has not been used. If an employee is transferred to 
224.7 	a separate division, entity, or location, but remains employed by the same employer, the 
224.8 	employee is entitled to all earned sick and safe time accrued at the prior division, entity, or 
224.9 	location and is entitled to use all earned sick and safe time as provided in sections 181.9445 
224.10 	to 181.9448. When there is a separation from employment and the employee is rehired 
224.11 	within 180 days of separation by the same employer, previously accrued earned sick and 
224.12 	safe time that had not been used or otherwise disbursed to the benefit of the employee upon 
224.13 	separation must be reinstated. An employee is entitled to use accrued earned sick and safe 
224.14 	time and accrue additional earned sick and safe time at the commencement of reemployment.

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

224.16 	Sec. 17. Minnesota Statutes 2023 Supplement, section 181.9448, subdivision 3, is amended 
224.17 	to read:
224.18 		Subd. 3.Employer succession. (a) When a different employer succeeds or takes the 
224.19 	place of an existing employer, all employees of the original employer who remain employed 
224.20 	by the successor employer are entitled to all earned sick and safe time accrued but not used 
224.21 	when employed by the original employer, and are entitled to use all earned sick and safe 
224.22 	time previously accrued but not used.
224.23 	(b) If, at the time of transfer of the business, employees are terminated by the original 
224.24 	employer and hired within 30 days by the successor employer following the transfer employer 
224.25 	succession, those employees are entitled to all earned sick and safe time accrued but not 
224.26 	used when employed by the original employer, and are entitled to use all earned sick and 
224.27 	safe time previously accrued but not used.

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

225.1 	ARTICLE 12
225.2 	UNIVERSITY OF MINNESOTA COLLECTIVE BARGAINING

225.3 	Section 1. Minnesota Statutes 2022, section 179A.11, subdivision 1, is amended to read:
225.4 		Subdivision 1.Units. (a) The following are the appropriate units of University of 
225.5 	Minnesota employees. The listed units include but are not limited to the positions described. 
225.6 	A position may be added to a unit if the commissioner makes a determination under section 
225.7 	179A.09 that the unit is appropriate for the position. All units shall exclude managerial and 
225.8 	confidential employees. Supervisory employees shall only be assigned to unit 13. No 
225.9 	additional units of University of Minnesota employees shall be recognized for the purpose 
225.10 	of meeting and negotiating.
225.11 	(1) The Law Enforcement Unit consists of includes the positions of all employees with 
225.12 	the power of arrest.
225.13 	(2) The Craft and Trades Unit consists of includes the positions of all employees whose 
225.14 	work requires specialized manual skills and knowledge acquired through formal training 
225.15 	or apprenticeship or equivalent on-the-job training or experience.
225.16 	(3) The Service, Maintenance, and Labor Unit consists of includes the positions of all 
225.17 	employees whose work is typically that of maintenance, service, or labor and which does 
225.18 	not require extensive previous training or experience, except as provided in unit 4.
225.19 	(4) The Health Care Nonprofessional and Service Unit consists of includes the positions 
225.20 	of all nonprofessional employees of the University of Minnesota hospitals, dental school, 
225.21 	and health service whose work is unique to those settings, excluding labor and maintenance 
225.22 	employees as defined in unit 3.
225.23 	(5) The Nursing Professional Unit consists of includes all positions which are required 
225.24 	to be filled by registered nurses.
225.25 	(6) The Clerical and Office Unit consists of includes the positions of all employees 
225.26 	whose work is typically clerical or secretarial, including nontechnical data recording and 
225.27 	retrieval and general office work, except as provided in unit 4.
225.28 	(7) The Technical Unit consists of includes the positions of all employees whose work 
225.29 	is not typically manual and which requires specialized knowledge or skills acquired through 
225.30 	two-year academic programs or equivalent experience or on-the-job training, except as 
225.31 	provided in unit 4.
225.32 	(8) The Twin Cities Instructional Unit consists of the positions of all instructional 
225.33 	employees with the rank of professor, associate professor, assistant professor, including 
226.1 	research associate or instructor, including research fellow, located on the Twin Cities 
226.2 	campuses.
226.3 	(9) (8) The Outstate Instructional Unit consists of includes the positions of all instructional 
226.4 	employees with the rank of professor, associate professor, assistant professor, including 
226.5 	research associate or instructor, including research fellow, located at the Duluth campus, 
226.6 	provided that the positions of instructional employees of the same ranks at the Morris, 
226.7 	Crookston, or Waseca Rochester campuses shall be included within this unit if a majority 
226.8 	of the eligible employees voting at a campus so vote during an election conducted by the 
226.9 	commissioner, provided that the election or majority verification procedure shall not be 
226.10 	held until the Duluth campus has voted in favor of representation. The election shall be held 
226.11 	or majority verification procedure shall take place when an employee organization or group 
226.12 	of employees petitions the commissioner stating that a majority of the eligible employees 
226.13 	at one of these campuses wishes to join the unit and this petition is supported by a showing 
226.14 	of at least 30 percent support from eligible employees at that campus and is filed between 
226.15 	September 1 and November 1.
226.16 	Should both units 8 and 9 elect exclusive bargaining representatives, those representatives 
226.17 	may by mutual agreement jointly negotiate a contract with the regents, or may negotiate 
226.18 	separate contracts with the regents. If the exclusive bargaining representatives jointly 
226.19 	negotiate a contract with the regents, the contract shall be ratified by each unit. For the 
226.20 	purposes of this section, an "instructional employee" is an individual who spends 35 percent 
226.21 	or more of their work time creating, delivering, and assessing the mastery of credit-bearing 
226.22 	coursework.
226.23 	(10) The Graduate Assistant Unit consists of includes the positions of all graduate 
226.24 	assistants who are enrolled in the graduate school and who hold the rank of research assistant, 
226.25 	teaching assistant, teaching associate I or II, project assistant, graduate school fellow, 
226.26 	graduate school trainee, professional school fellow, professional school trainee, or 
226.27 	administrative fellow I or II. The listed ranks do not coincide with the ranks that are 
226.28 	categorized by the University of Minnesota as professionals in training, even though in 
226.29 	some cases the job titles may be the same.
226.30 	(11) The Academic Professional and Administrative Staff Unit consists of all academic 
226.31 	professional and administrative staff positions that are not defined as included in an 
226.32 	instructional unit, the supervisory unit, the clerical unit, or the technical unit.
226.33 	(12) The Noninstructional Professional Unit consists of the positions of all employees 
226.34 	meeting the requirements of section 179A.03, subdivision 13, clause (1) or (2), which are 
227.1 	not defined as included within an instructional unit, the Academic Professional and 
227.2 	Administrative Staff Unit, or the supervisory unit.
227.3 	(13) The Supervisory Employees Unit consists of the positions of all supervisory 
227.4 	employees.
227.5 	(b) An employee of the University of Minnesota whose position is not enumerated in 
227.6 	paragraph (a) may petition the commissioner to determine an appropriate unit for the position. 
227.7 	The commissioner must make a determination for an appropriate unit as provided in section 
227.8 	179A.09 and the commissioner must give special weight to the desires of the petitioning 
227.9 	employee or representatives of the petitioning employee.

227.10 	Sec. 2. Minnesota Statutes 2022, section 179A.11, subdivision 2, is amended to read:
227.11 		Subd. 2.University of Minnesota employee severance. (a) Each of the following 
227.12 	groups of University of Minnesota employees has the right, as specified in this subdivision, 
227.13 	to separate from the instructional and supervisory units: (1) health sciences instructional 
227.14 	employees at all campuses with the rank of professor, associate professor, assistant professor, 
227.15 	including research associate, or instructor, including research fellow, (2) instructional 
227.16 	employees of the law school with the rank of professor, associate professor, assistant 
227.17 	professor, including research associate, or instructor, including research fellow, (3) 
227.18 	instructional supervisors, (4) noninstructional professional supervisors, and (5) academic 
227.19 	professional and administrative staff supervisors.
227.20 	This (b) The right to separate may be exercised:
227.21 	(1) by petition between September 1 and November 1. If a group separates from its unit, 
227.22 	it has no right to meet and negotiate, but retains the right to meet and confer with the 
227.23 	appropriate officials on any matter of concern to the group. The right to separate must be 
227.24 	exercised as follows: An employee organization or group of employees claiming that a 
227.25 	majority of any one of these groups of employees on a statewide basis wish to separate from 
227.26 	their unit may petition the commissioner for an election during the petitioning period. If the 
227.27 	petition is supported by a showing of at least 30 percent support from the employees, the 
227.28 	commissioner shall may hold an election on the separation issue or the petitioning group 
227.29 	may proceed under the process set forth in section 179A.12. This election must be conducted 
227.30 	within 30 days of the close of the petition period. If a majority of votes cast endorse severance 
227.31 	from their unit, the commissioner shall certify that result.; or
227.32 	(2) by the group's exclusion from a proposed unit in a representation petition.
228.1 	(c) Where not inconsistent with other provisions of this section, the election is governed 
228.2 	by section 179A.12. If a group of employees severs, it may rejoin that unit by following the 
228.3 	procedures for severance during the periods for severance.

228.4 	Sec. 3. Minnesota Statutes 2022, section 179A.11, is amended by adding a subdivision to 
228.5 	read:
228.6 		Subd. 3.Joint bargaining. Units organized under this section that have elected exclusive 
228.7 	bargaining representatives may by mutual agreement of the exclusive representatives jointly 
228.8 	negotiate a contract with the regents or may negotiate separate contracts with the regents. 
228.9 	If the exclusive bargaining representatives jointly negotiate a contract with the regents, the 
228.10 	contract must be ratified by each unit.

228.11 	ARTICLE 13
228.12 	BROADBAND AND PIPELINE SAFETY

228.13 	Section 1. Minnesota Statutes 2022, section 116J.395, subdivision 6, is amended to read:
228.14 		Subd. 6.Awarding grants. (a) In evaluating applications and awarding grants, the 
228.15 	commissioner shall give priority to applications that are constructed in areas identified by 
228.16 	the director of the Office of Broadband Development as unserved.
228.17 	(b) In evaluating applications and awarding grants, the commissioner may give priority 
228.18 	to applications that:
228.19 	(1) are constructed in areas identified by the director of the Office of Broadband 
228.20 	Development as underserved;
228.21 	(2) offer new or substantially upgraded broadband service to important community 
228.22 	institutions including, but not limited to, libraries, educational institutions, public safety 
228.23 	facilities, and healthcare facilities;
228.24 	(3) facilitate the use of telehealth and electronic health records;
228.25 	(4) serve economically distressed areas of the state, as measured by indices of 
228.26 	unemployment, poverty, or population loss that are significantly greater than the statewide 
228.27 	average;
228.28 	(5) provide technical support and train residents, businesses, and institutions in the 
228.29 	community served by the project to utilize broadband service;
228.30 	(6) include a component to actively promote the adoption of the newly available 
228.31 	broadband services in the community;
229.1 	(7) provide evidence of strong support for the project from citizens, government, 
229.2 	businesses, and institutions in the community;
229.3 	(8) provide access to broadband service to a greater number of unserved or underserved 
229.4 	households and businesses; or
229.5 	(9) leverage greater amounts of funding for the project from other private and public 
229.6 	sources.; or
229.7 	(10) commit to implementation of workforce best practices, meaning all laborers and 
229.8 	mechanics performing construction, installation, remodeling, or repairs on the project sites 
229.9 	for which the grant is provided:
229.10 	(i) are paid the prevailing wage rate as defined in section 177.42, subdivision 6, and the 
229.11 	applicant and all of its construction contractors and subcontractors agree that the payment 
229.12 	of prevailing wage to such laborers and mechanics is subject to the requirements and 
229.13 	enforcement provisions under sections 177.27, 177.30, 177.32, 177.41 to 177.435, and 
229.14 	177.45, which the commissioner of labor and industry shall have the authority to enforce; 
229.15 	or
229.16 	(ii) receive from the employer:
229.17 	(A) at least 40 hours of hands-on skills training annually;
229.18 	(B) employer-paid family health insurance coverage; and
229.19 	(C) employer-paid retirement benefit payments equal to no less than 15 percent of the 
229.20 	employee's total taxable wages.
229.21 	(c) The commissioner shall endeavor to award grants under this section to qualified 
229.22 	applicants in all regions of the state.
229.23 	(d) The commissioner shall endeavor to award no less than 50 percent of grant awards 
229.24 	from general fund appropriations for the border-to-border broadband grant program under 
229.25 	section 116J.396 for applicants that agree to implement the workforce best practices in this 
229.26 	section. The applicant's agreement to implement the workforce best practices described in 
229.27 	paragraph (b) must be an express condition of providing the grant in the grant agreement.

229.28 	EFFECTIVE DATE. This section is effective January 1, 2026.

230.1 	Sec. 2. Minnesota Statutes 2022, section 116J.395, is amended by adding a subdivision 
230.2 	to read:
230.3 		Subd. 9.Workforce plan data. (a) Grantees that serve more than 10,000 broadband 
230.4 	customers and are receiving funding for projects under this section are required to provide 
230.5 	in annual reports information on the workforce performing installation work funded through 
230.6 	the grant, including:
230.7 	(1) the number of installation labor hours performed by workforce directly employed 
230.8 	by the grantee or the Internet service provider;
230.9 	(2) the number of installation labor hours performed by contractors and subcontractors 
230.10 	on grant-funded projects with subtotals for hours worked by Minnesota residents, people 
230.11 	of color, Indigenous people, women, and people with disabilities;
230.12 	(3) the name, business address, and number of labor hours performed by each contractor 
230.13 	and subcontractor that participated in construction of a grant-funded project;
230.14 	(4) the percentages of workforce performing installation labor whose straight-time hourly 
230.15 	pay rate was at least $25 and who received employer-paid medical coverage and retirement 
230.16 	benefits; and
230.17 	(5) any other workforce plan information as determined by the commissioner.
230.18 	(b) Following an award, the workforce plan and the requirement to submit ongoing 
230.19 	workforce reports shall be incorporated as material conditions of the contract with the 
230.20 	department and become enforceable, certified commitments.

230.21 	EFFECTIVE DATE. This section is effective January 1, 2026.

230.22 	Sec. 3. Minnesota Statutes 2022, section 116J.395, is amended by adding a subdivision 
230.23 	to read:
230.24 		Subd. 10.Failure to meet requirements or falsification of data. If successful applicants 
230.25 	fail to meet the program requirements under this section, or otherwise falsify information 
230.26 	regarding such requirements, the commissioner shall investigate the failure and issue an 
230.27 	appropriate action, up to and including a determination that the applicant is ineligible for 
230.28 	future participation in broadband grant programs funded by the department.

230.29 	EFFECTIVE DATE. This section is effective January 1, 2026.

231.1 	Sec. 4. Minnesota Statutes 2022, section 216B.17, is amended by adding a subdivision to 
231.2 	read:
231.3 		Subd. 9.Telecommunications and cable communications systems. (a) The commission 
231.4 	has authority under this section to investigate, upon complaint or on its own motion, conduct 
231.5 	by or on behalf of a telecommunications carrier, telephone company, or cable 
231.6 	communications system provider that impacts public utility or cooperative electric association 
231.7 	infrastructure. If the commission finds that the conduct damaged or unreasonably interfered 
231.8 	with the function of the infrastructure, the commission may take any action authorized under 
231.9 	sections 216B.52 to 216B.61 with respect to the provider.
231.10 	(b) For purposes of this subdivision:
231.11 	(1) "telecommunications carrier" has the meaning given in section 237.01, subdivision 
231.12 	6;
231.13 	(2) "telephone company" has the meaning given in section 237.01, subdivision 7; and
231.14 	(3) "cable communications system provider" means an owner or operator of a cable 
231.15 	communications system as defined in section 238.02, subdivision 3.

231.16 	Sec. 5. [326B.198] UNDERGROUND TELECOMMUNICATIONS 
231.17 	INFRASTRUCTURE.
231.18 		Subdivision 1.Definitions. For the purposes of this section:
231.19 	(1) "directional drilling" means a drilling method that utilizes a steerable drill bit to cut 
231.20 	a bore hole for installing underground utilities;
231.21 	(2) "safety-qualified underground telecommunications installer" means a person who 
231.22 	has completed underground utilities installation certification under subdivision 3;
231.23 	(3) "underground telecommunications utilities" means buried broadband, telephone and 
231.24 	other telecommunications transmission, distribution and service lines, and associated 
231.25 	facilities; and
231.26 	(4) "underground utilities" means buried electric transmission and distribution lines, gas 
231.27 	and hazardous liquids pipelines and distribution lines, sewer and water pipelines, telephone 
231.28 	or telecommunications lines, and associated facilities.
231.29 		Subd. 2.Installation requirements. (a) The installation of underground 
231.30 	telecommunications infrastructure that is located within ten feet of existing underground 
231.31 	utilities or that crosses the existing underground utilities must be performed by 
231.32 	safety-qualified underground telecommunications installers as follows:
232.1 	(1) the location of existing utilities by hand- or hydro-excavation or other accepted 
232.2 	methods must be performed by a safety-qualified underground telecommunications installer;
232.3 	(2) where telecommunications infrastructure is installed by means of directional drilling, 
232.4 	the monitoring of the location and depth of the drill head must be performed by a 
232.5 	safety-qualified underground telecommunications installer; and
232.6 	(3) no fewer than two safety-qualified underground telecommunications installers must 
232.7 	be present at all times at any location where telecommunications infrastructure is being 
232.8 	installed by means of directional drilling.
232.9 	(b) Beginning July 1, 2025, all installations of underground telecommunications 
232.10 	infrastructure subject to this subdivision within the seven-county metropolitan area must 
232.11 	be performed by safety-qualified underground telecommunications installers that meet the 
232.12 	requirements of this subdivision.
232.13 	(c) Beginning January 1, 2026, all installations of underground telecommunications 
232.14 	infrastructure subject to this subdivision within this state must be performed by 
232.15 	safety-qualified underground telecommunications installers that meet the requirements of 
232.16 	this subdivision.
232.17 		Subd. 3.Certification Standards. (a) The commissioner of labor and industry, in 
232.18 	consultation with the Office of Broadband, shall approve standards for a safety-qualified 
232.19 	underground telecommunications installer certification program that requires a person to:
232.20 	(1) complete a 40-hour initial course that includes classroom and hands-on instruction 
232.21 	covering proper work procedures for safe installation of underground utilities, including:
232.22 	(i) regulations applicable to excavation near existing utilities;
232.23 	(ii) identification, location, and verification of utility lines using hand- or 
232.24 	hydro-excavation or other accepted methods;
232.25 	(iii) response to line strike incidents;
232.26 	(iv) traffic control procedures;
232.27 	(v) use of a tracking device to safely guide directional drill equipment along a drill path; 
232.28 	and
232.29 	(vi) avoidance and mitigation of safety hazards posed by underground utility installation 
232.30 	projects;
232.31 	(2) demonstrate knowledge of the course material by successfully completing an 
232.32 	examination approved by the commissioner; and
233.1 	(3) complete a four-hour refresher course within three years of completing the original 
233.2 	course and every three years thereafter in order to maintain certification.
233.3 	(b) The commissioner must develop an approval process for training providers under 
233.4 	this subdivision and may suspend or revoke the approval of any training provider that fails 
233.5 	to demonstrate consistent delivery of approved curriculum or success in preparing participants 
233.6 	to complete the examination.

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

233.8 	ARTICLE 14
233.9 	HOUSING APPROPRIATIONS

233.10	Section 1. APPROPRIATIONS.
 	
233.11 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
233.12 	and for the purposes specified in this article. The appropriations are from the general fund, 
233.13 	or another named fund, and are available for the fiscal years indicated for each purpose. 
233.14 	The figures "2024" and "2025" used in this article mean that the appropriations listed under 
233.15 	them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively. 
233.16 	"The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium" 
233.17 	is fiscal years 2024 and 2025.

233.18				APPROPRIATIONS
	
233.19				Available for the Year
	
233.20				Ending June 30
	
233.21					2024
		2025

233.22	Sec. 2. HOUSING FINANCE AGENCY

233.23	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	8,680,000
	
233.24 	(a) The amounts that may be spent for each 
233.25 	purpose are specified in the following 
233.26 	subdivisions.
233.27 	(b) Unless otherwise specified, this 
233.28 	appropriation is for transfer to the housing 
233.29 	development fund for the programs specified 
233.30 	in this section.

233.31	Subd. 2.Family Homeless Prevention
 		-0-
		8,109,000
	
233.32 	This appropriation is for the family homeless 
233.33 	prevention and assistance program under 
234.1 	Minnesota Statutes, section 462A.204. 
234.2 	Notwithstanding procurement provisions 
234.3 	outlined in Minnesota Statutes, section 
234.4 	16C.06, subdivisions 1, 2, and 6, the agency 
234.5 	may award grants to existing program 
234.6 	grantees. This is a onetime appropriation.

234.7	Subd. 3.Minnesota Homeless Study
 		-0-
		100,000
	
234.8 	This appropriation is for a grant to the 
234.9 	Amherst H. Wilder Foundation for the 
234.10 	Minnesota homeless study. Notwithstanding 
234.11 	Minnesota Statutes, section 16B.98, 
234.12 	subdivision 14, the commissioner may use up 
234.13 	to one percent of this appropriation for 
234.14 	administrative costs. This is a onetime 
234.15 	appropriation.

234.16	Subd. 6.Expediting Rental Assistance
 		-0-
		471,000
	
234.17 	This appropriation is for the agency's work 
234.18 	under article 16 of this act. This is a onetime 
234.19 	appropriation. Any unspent portion of the 
234.20 	appropriation shall be transferred to the family 
234.21 	homeless prevention and assistance program.

234.22
234.23	Sec. 3. DEPARTMENT OF LABOR AND 
INDUSTRY
 	$
	-0-
	$
	225,000
	
234.24 	This appropriation is for the single-egress 
234.25 	stairway apartment building report under 
234.26 	article 15, section 46. This is a onetime 
234.27 	appropriation.

234.28	Sec. 4. SUPREME COURT
 	$
	-0-
	$
	545,000
	
234.29 	This appropriation is for the implementation 
234.30 	of Laws 2023, chapter 52, article 19, sections 
234.31 	117 to 119. This is a onetime appropriation 
234.32 	and is available until June 30, 2026.

234.33
234.34	Sec. 5. LEGISLATIVE COORDINATING 
COMMISSION
 	$
	-0-
	$
	400,000
	
235.1 	(a) $200,000 is for a contract to facilitate, and 
235.2 	the administrative costs of, the Task Force on 
235.3 	Long-Term Sustainability of Affordable 
235.4 	Housing established in article 15, section 49. 
235.5 	This is a onetime appropriation.
235.6 	(b) $200,000 is for a contract to facilitate, and 
235.7 	the administrative costs of, the working group 
235.8 	on common interest communities and 
235.9 	homeowners associations established in article 
235.10 	15, section 48. This is a onetime appropriation.

235.11	Sec. 6. HUMAN SERVICES
 	$
	-0-
	$
	150,000
	
235.12 	This appropriation is for a contract with Propel 
235.13 	Nonprofits to conduct a needs analysis and a 
235.14 	site analysis for emergency shelter serving 
235.15 	transgender adults experiencing homelessness. 
235.16 	This is a onetime appropriation and is 
235.17 	available until June 30, 2026. This 
235.18 	appropriation is in addition to any other 
235.19 	appropriation enacted in the 2024 session of 
235.20 	the legislature for this purpose.

235.21 	Sec. 7. Laws 2023, chapter 37, article 1, section 2, subdivision 2, is amended to read:

235.23235.22
	Subd. 2.Challenge Program
 		60,425,000
		60,425,000
53,425,000
	
235.24 	(a) This appropriation is for the economic 
235.25 	development and housing challenge program 
235.26 	under Minnesota Statutes, sections 462A.33
235.27 	and 462A.07, subdivision 14.
235.28 	(b) Of this amount, $6,425,000 each year shall 
235.29 	be made available during the first 11 months 
235.30 	of the fiscal year exclusively for housing 
235.31 	projects for American Indians. Any funds not 
235.32 	committed to housing projects for American 
235.33 	Indians within the annual consolidated request 
235.34 	for funding processes may be available for 
236.1 	any eligible activity under Minnesota Statutes, 
236.2 	sections 462A.33 and 462A.07, subdivision 
236.3 	14.
236.4 	(c) Of the amount in the first year, $5,000,000 
236.5 	is for a grant to Urban Homeworks to expand 
236.6 	initiatives pertaining to deeply affordable 
236.7 	homeownership in Minneapolis neighborhoods 
236.8 	with over 40 percent of residents identifying 
236.9 	as Black, Indigenous, or People of Color and 
236.10 	at least 40 percent of residents making less 
236.11 	than 50 percent of the area median income. 
236.12 	The grant is to be used for acquisition, 
236.13 	rehabilitation, gap financing as defined in 
236.14 	Minnesota Statutes, section 462A.33, 
236.15 	subdivision 1, and construction of homes to 
236.16 	be sold to households with incomes of 50 to
236.17 	at or below 60 percent of the area median 
236.18 	income. This is a onetime appropriation, and 
236.19 	is available until June 30, 2027. By December 
236.20 	15 each year until 2027, Urban Homeworks 
236.21 	must submit a report to the chairs and ranking 
236.22 	minority members of the legislative 
236.23 	committees having jurisdiction over housing 
236.24 	finance and policy. The report must include 
236.25 	the amount used for (1) acquisition, (2) 
236.26 	rehabilitation, and (3) construction of housing 
236.27 	units, along with the number of housing units 
236.28 	acquired, rehabilitated, or constructed, and the 
236.29 	amount of the appropriation that has been 
236.30 	spent. If any home was sold or transferred 
236.31 	within the year covered by the report, Urban 
236.32 	Homeworks must include the price at which 
236.33 	the home was sold, as well as how much was 
236.34 	spent to complete the project before sale.
237.1 	(d) Of the amount in the first year, $2,000,000 
237.2 	is for a grant to Rondo Community Land 
237.3 	Trust. This is a onetime appropriation.
237.4 	(e) The base for this program in fiscal year 
237.5 	2026 and beyond is $12,925,000.

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

237.7 	Sec. 8. Laws 2023, chapter 37, article 1, section 2, subdivision 5, is amended to read:

237.9237.8
	Subd. 5.Workforce Homeownership Program
 		20,250,000
17,250,000
		250,000
	
237.10 	(a) This appropriation is for the workforce 
237.11 	homeownership program under Minnesota 
237.12 	Statutes, section 462A.38.
237.13 	(b) The base for this program in fiscal year 
237.14 	2026 and beyond is $250,000.

237.15 	Sec. 9. Laws 2023, chapter 37, article 1, section 2, subdivision 18, is amended to read:

237.17237.16
	Subd. 18.Supportive Housing
 		25,000,000
10,000,000
		-0-
	
237.18 	This appropriation is for the supportive 
237.19 	housing program under Minnesota Statutes, 
237.20 	section 462A.42. This is a onetime 
237.21 	appropriation.

237.22 	Sec. 10. Laws 2023, chapter 37, article 1, section 2, subdivision 25, is amended to read:

237.23
237.24	Subd. 25.Manufactured Home Lending Grants
Program
 		10,000,000
		-0-
	
237.25 	(a) This appropriation is for the a grant to 
237.26 	NeighborWorks Home Partners for a
237.27 	manufactured home lending grant program. 
237.28 	This is a onetime appropriation.
237.29 	(b) The funds must be used for new 
237.30 	manufactured home financing programs; 
237.31 	manufactured home down payment assistance; 
238.1 	or manufactured home repair, renovation, 
238.2 	removal, and site preparation financing 
238.3 	programs.
238.4 	(c) Interest earned and repayments of principal 
238.5 	from loans issued under this subdivision must 
238.6 	be used for the purposes of this subdivision.
238.7 	(d) For the purposes of this subdivision, the 
238.8 	term "manufactured home" has the meaning 
238.9 	given in Minnesota Statutes, section 327B.01, 
238.10 	subdivision 13.

238.11 	Sec. 11. Laws 2023, chapter 37, article 1, section 2, subdivision 29, is amended to read:

238.13238.12
	Subd. 29.Community Stabilization
 		45,000,000
		45,000,000
70,000,000
	
238.14 	(a) This appropriation is for the community 
238.15 	stabilization program. This a onetime 
238.16 	appropriation. Of this amount, $10,000,000 is 
238.17 	for a grant to AEON for Huntington Place.
238.18 	(b) The first year and second year 
238.19 	appropriations are available as follows:
238.20 	(1) $10,000,000 is for a grant to AEON for 
238.21 	Huntington Place;
238.22 	(2) notwithstanding Minnesota Statutes, 
238.23 	sections 16B.98, subdivisions 5 and 12, and 
238.24 	16B.981, subdivision 2, $3,250,000 is for a 
238.25 	grant to the Wilder Park Association to assist 
238.26 	with the cost of a major capital repair project 
238.27 	for the rehabilitation of portions of the 
238.28 	owner-occupied senior high-rise facility. The 
238.29 	grantee must verify that 50 percent of units 
238.30 	are occupied by households with incomes at 
238.31 	or below 60 percent of area median income;
238.32 	(3) $41,750,000 is for multiunit rental housing;
239.1 	(4) $10,000,000 is for single-family housing; 
239.2 	and
239.3 	(5) $50,000,000 is for recapitalization of 
239.4 	distressed buildings. Of this amount, up to 
239.5 	$15,000,000 is for preservation or 
239.6 	recapitalization of housing that includes 
239.7 	supportive housing.
239.8 	(c) Notwithstanding Minnesota Statutes, 
239.9 	section 16B.98, subdivision 14, the 
239.10 	commissioner may use up to one percent of 
239.11 	this appropriation for administrative costs for 
239.12 	the grants in paragraph (b), clauses (1) and 
239.13 	(2). This is a onetime appropriation.

239.14 	Sec. 12. AVAILABILITY OF APPROPRIATIONS FOR ADMINISTRATIVE 
239.15 	EXPENSES.
 239.16 	(a) Money appropriated in section 2 and section 11, paragraph (b), clauses (1) and (2), 
239.17 	for grants must not be spent on institutional overhead charges that are not directly related 
239.18 	to and necessary for the grant.
239.19 	(b) By February 15, 2025, the commissioner shall report to the chairs and ranking 
239.20 	minority members of the legislative committees having jurisdiction over housing finance 
239.21 	and policy on the anticipated costs for administering each grant in section 2 and section 11, 
239.22 	paragraph (b), clauses (1) and (2). Within 90 days after a grantee has fulfilled the obligations 
239.23 	of their grant agreement, the commissioner shall report to the chairs and ranking minority 
239.24 	members of the legislative committees having jurisdiction over housing finance and policy 
239.25 	on the final cost for administering each grant in section 2 and section 11, paragraph (b), 
239.26 	clauses (1) and (2).

239.27 	Sec. 13. REPEALER.
 239.28 	Laws 2023, chapter 37, article 2, section 13, is repealed.

240.1 	ARTICLE 15
240.2 	HOUSING POLICY

240.3 	Section 1. Minnesota Statutes 2023 Supplement, section 82.75, subdivision 8, is amended 
240.4 	to read:
240.5 		Subd. 8.Accrued interest. (a) Each broker shall maintain a pooled interest-bearing trust 
240.6 	account for deposit of client funds. The interest accruing on the trust account, less reasonable 
240.7 	transaction costs, must be paid to the Minnesota Housing Finance Agency for deposit in 
240.8 	the housing trust fund account created under section 462A.201 unless otherwise specified 
240.9 	pursuant to an expressed written agreement between the parties to a transaction.
240.10 	(b) For an account created under paragraph (a), each broker shall direct the financial 
240.11 	institution to:
240.12 	(1) pay the interest, less reasonable transaction costs, computed in accordance with the 
240.13 	financial institution's standard accounting practice, at least quarterly, to the Minnesota 
240.14 	Housing Finance Agency; and
240.15 	(2) send a statement to the Minnesota Housing Finance Agency showing the name of 
240.16 	the broker for whom the payment is made, the rate of interest applied, the amount of service 
240.17 	charges deducted, and the account balance for the period in which the report is made.
240.18 	The Minnesota Housing Finance Agency shall credit the amount collected under this 
240.19 	subdivision to the housing trust fund account established in section 462A.201.
240.20 	(c) The financial institution must promptly notify the agency if a draft drawn on the 
240.21 	account is dishonored. A draft is not dishonored if a stop payment order is requested by an 
240.22 	issuer who has a good faith defense to payment on the draft.
240.23 	(d) By January 15 of each year, the Minnesota Housing Finance Agency must report to 
240.24 	the chairs and ranking minority members of the legislative committees with jurisdiction 
240.25 	over housing finance and policy. The report must specify the amount of funds deposited 
240.26 	under this subdivision in the housing trust fund account established under section 462A.201 
240.27 	during the most recently concluded fiscal year. The report must also include a history of 
240.28 	deposits made under this section, in nominal dollar amounts and in the present value of 
240.29 	those amounts, calculated using the Consumer Price Index-All Items (United States city 
240.30 	average).

241.1 	Sec. 2. Minnesota Statutes 2022, section 383B.145, subdivision 5, is amended to read:
241.2 		Subd. 5.Set-aside contracts. (a) Notwithstanding any other law to the contrary, the 
241.3 	board may set aside an amount, for each fiscal year, for awarding contracts to businesses 
241.4 	and social services organizations which have a majority of employees that employ persons
241.5 	who would be eligible for public assistance or who would require rehabilitative services in 
241.6 	the absence of their employment. The set-aside amount may not exceed two percent of the 
241.7 	amount appropriated by the board in the budget for the preceding fiscal year. Failure by the 
241.8 	board to designate particular procurements for the set-aside program shall not prevent 
241.9 	vendors from seeking the procurement award through the normal solicitation and bidding 
241.10 	processes pursuant to the provisions of the Uniform Municipal Contracting Act, section 
241.11 	471.345.
241.12 	(b) The board may elect to use a negotiated price or bid contract procedure in the awarding 
241.13 	of a procurement contract under the set-aside program. The amount of the award shall not 
241.14 	exceed by more than five percent the estimated price for the goods or services, if they were 
241.15 	to be purchased on the open market and not under the set-aside program.
241.16 	(c) Before contracting with a business or social service organization under the set-aside 
241.17 	program, the board or authorized person shall conduct an investigation of the business or 
241.18 	social service organization with whom it seeks to contract and shall make findings, to be 
241.19 	contained in the provisions of the contract, that:
241.20 	(1) the vendor either:
241.21 	(i) has in its employ at least 50 percent of its employees who would be eligible to receive 
241.22 	some form of public assistance or other rehabilitative services in the absence of the award 
241.23 	of a contract to the vendor; or
241.24 	(ii) if the vendor is a business providing construction services, has in its employ to deliver 
241.25 	the set-aside contract as many employees who would be eligible to receive some form of 
241.26 	public assistance or other rehabilitative services in the absence of the award of a contract 
241.27 	to the vendor as is practicable in consideration of industry safety standards, established 
241.28 	supervisory ratios for apprentices, and requirements for licensed persons to perform certain 
241.29 	work;
241.30 	(2) the vendor has elected to apply to the board for a contract under the set-aside 
241.31 	provisions; and
241.32 	(3) the vendor is able to perform the set-aside contract.
242.1 	(d) The board shall publicize the provisions of the set-aside program, attempt to locate 
242.2 	vendors able to perform set-aside procurement contracts and otherwise encourage 
242.3 	participation therein.

242.4 	Sec. 3. Minnesota Statutes 2022, section 462A.02, subdivision 10, is amended to read:
242.5 		Subd. 10.Energy conservation, decarbonization, and climate resilience. It is further 
242.6 	declared that supplies of conventional energy resources are rapidly depleting in quantity 
242.7 	and rising in price and that the burden of these occurrences falls heavily upon the citizens 
242.8 	of Minnesota generally and persons of low and moderate income in particular. These 
242.9 	conditions are adverse to the health, welfare, and safety of all of the citizens of this state. 
242.10 	It is further declared that it is a public purpose to ensure the availability of financing to be 
242.11 	used by all citizens of the state, while giving preference to low and moderate income people, 
242.12 	to assist in the installation in their dwellings of reasonably priced energy conserving systems 
242.13 	including the use of alternative energy resources and equipment so that by the improvement 
242.14 	of the energy efficiency of, clean energy, greenhouse gas emissions reduction, climate 
242.15 	resiliency, and other qualified projects for all housing, the adequacy of the total energy 
242.16 	supply may be preserved for the benefit of all citizens.

242.17 	Sec. 4. Minnesota Statutes 2023 Supplement, section 462A.05, subdivision 14, is amended 
242.18 	to read:
242.19 		Subd. 14.Rehabilitation loans. It may agree to purchase, make, or otherwise participate 
242.20 	in the making, and may enter into commitments for the purchase, making, or participation 
242.21 	in the making, of eligible loans for rehabilitation, with terms and conditions as the agency 
242.22 	deems advisable, to persons and families of low and moderate income, and to owners of 
242.23 	existing residential housing for occupancy by such persons and families, for the rehabilitation 
242.24 	of existing residential housing owned by them. Rehabilitation may include the addition or 
242.25 	rehabilitation of a detached accessory dwelling unit. The loans may be insured or uninsured 
242.26 	and may be made with security, or may be unsecured, as the agency deems advisable. The 
242.27 	loans may be in addition to or in combination with long-term eligible mortgage loans under 
242.28 	subdivision 3. They may be made in amounts sufficient to refinance existing indebtedness 
242.29 	secured by the property, if refinancing is determined by the agency to be necessary to permit 
242.30 	the owner to meet the owner's housing cost without expending an unreasonable portion of 
242.31 	the owner's income thereon. No loan for rehabilitation shall be made unless the agency 
242.32 	determines that the loan will be used primarily to make the housing more desirable to live 
242.33 	in, to increase the market value of the housing, for compliance with state, county or municipal 
242.34 	building, housing maintenance, fire, health or similar codes and standards applicable to 
243.1 	housing, or to accomplish energy conservation related improvements, decarbonization, 
243.2 	climate resiliency, and other qualified projects. In unincorporated areas and municipalities 
243.3 	not having codes and standards, the agency may, solely for the purpose of administering 
243.4 	the provisions of this chapter, establish codes and standards. No loan under this subdivision 
243.5 	for the rehabilitation of owner-occupied housing shall be denied solely because the loan 
243.6 	will not be used for placing the owner-occupied residential housing in full compliance with 
243.7 	all state, county, or municipal building, housing maintenance, fire, health, or similar codes 
243.8 	and standards applicable to housing. Rehabilitation loans shall be made only when the 
243.9 	agency determines that financing is not otherwise available, in whole or in part, from private 
243.10 	lenders upon equivalent terms and conditions. Accessibility rehabilitation loans authorized 
243.11 	under this subdivision may be made to eligible persons and families without limitations 
243.12 	relating to the maximum incomes of the borrowers if:
243.13 	(1) the borrower or a member of the borrower's family requires a level of care provided 
243.14 	in a hospital, skilled nursing facility, or intermediate care facility for persons with 
243.15 	developmental disabilities;
243.16 	(2) home care is appropriate; and
243.17 	(3) the improvement will enable the borrower or a member of the borrower's family to 
243.18 	reside in the housing.
243.19 	The agency may waive any requirement that the housing units in a residential housing 
243.20 	development be rented to persons of low and moderate income if the development consists 
243.21 	of four or fewer dwelling units, one of which is occupied by the owner.

243.22 	Sec. 5. Minnesota Statutes 2022, section 462A.05, subdivision 14a, is amended to read:
243.23 		Subd. 14a.Rehabilitation loans; existing owner-occupied residential housing. It may 
243.24 	make loans to persons and families of low and moderate income to rehabilitate or to assist 
243.25 	in rehabilitating existing residential housing owned and occupied by those persons or 
243.26 	families. Rehabilitation may include replacement of manufactured homes. No loan shall be 
243.27 	made unless the agency determines that the loan will be used primarily for rehabilitation 
243.28 	work necessary for health or safety, essential accessibility improvements, or to improve the 
243.29 	energy efficiency of, clean energy, greenhouse gas emissions reductions, climate resiliency, 
243.30 	and other qualified projects in the dwelling. No loan for rehabilitation of owner-occupied 
243.31 	residential housing shall be denied solely because the loan will not be used for placing the 
243.32 	residential housing in full compliance with all state, county or municipal building, housing 
243.33 	maintenance, fire, health or similar codes and standards applicable to housing. The amount 
243.34 	of any loan shall not exceed the lesser of (a) a maximum loan amount determined under 
244.1 	rules adopted by the agency not to exceed $37,500, or (b) the actual cost of the work 
244.2 	performed, or (c) that portion of the cost of rehabilitation which the agency determines 
244.3 	cannot otherwise be paid by the person or family without the expenditure of an unreasonable 
244.4 	portion of the income of the person or family. Loans made in whole or in part with federal 
244.5 	funds may exceed the maximum loan amount to the extent necessary to comply with federal 
244.6 	lead abatement requirements prescribed by the funding source. In making loans, the agency 
244.7 	shall determine the circumstances under which and the terms and conditions under which 
244.8 	all or any portion of the loan will be repaid and shall determine the appropriate security for 
244.9 	the repayment of the loan. Loans pursuant to this subdivision may be made with or without 
244.10 	interest or periodic payments.

244.11 	Sec. 6. Minnesota Statutes 2022, section 462A.05, subdivision 14b, is amended to read:
244.12 		Subd. 14b.Energy conservation, decarbonization, and climate resiliency loans. It 
244.13 	may agree to purchase, make, or otherwise participate in the making, and may enter into 
244.14 	commitments for the purchase, making, or participating in the making, of loans to persons 
244.15 	and families, without limitations relating to the maximum incomes of the borrowers, to 
244.16 	assist in energy conservation rehabilitation measures, decarbonization, climate resiliency, 
244.17 	and other qualified projects for existing housing owned by those persons or families 
244.18 	including, but not limited to: weatherstripping and caulking; chimney construction or 
244.19 	improvement; furnace or space heater repair, cleaning or replacement; central air conditioner 
244.20 	installation, repair, maintenance, or replacement; air source or geothermal heat pump 
244.21 	installation, repair, maintenance, or replacement; insulation; windows and doors; and 
244.22 	structural or other directly related repairs or installations essential for energy conservation, 
244.23 	decarbonization, climate resiliency, and other qualified projects. Loans shall be made only 
244.24 	when the agency determines that financing is not otherwise available, in whole or in part, 
244.25 	from private lenders upon equivalent terms and conditions. Loans under this subdivision 
244.26 	or subdivision 14 may:
244.27 	(1) be integrated with a utility's on-bill repayment program approved under section 
244.28 	216B.241, subdivision 5d; and
244.29 	(2) also be made for the installation of on-site solar energy or energy storage systems.

244.30 	Sec. 7. Minnesota Statutes 2022, section 462A.05, subdivision 15, is amended to read:
244.31 		Subd. 15.Rehabilitation grants. (a) It may make grants to persons and families of low 
244.32 	and moderate income to pay or to assist in paying a loan made pursuant to subdivision 14, 
244.33 	or to rehabilitate or to assist in rehabilitating existing residential housing owned or occupied 
245.1 	by such persons or families. For the purposes of this section, persons of low and moderate 
245.2 	income include administrators appointed pursuant to section 504B.425, paragraph (d). No 
245.3 	grant shall be made unless the agency determines that the grant will be used primarily to 
245.4 	make the housing more desirable to live in, to increase the market value of the housing or 
245.5 	for compliance with state, county or municipal building, housing maintenance, fire, health 
245.6 	or similar codes and standards applicable to housing, or to accomplish energy conservation 
245.7 	related improvements, decarbonization, climate resiliency, or other qualified projects. In 
245.8 	unincorporated areas and municipalities not having codes and standards, the agency may, 
245.9 	solely for the purpose of administering this provision, establish codes and standards. No 
245.10 	grant for rehabilitation of owner occupied residential housing shall be denied solely because 
245.11 	the grant will not be used for placing the residential housing in full compliance with all 
245.12 	state, county or municipal building, housing maintenance, fire, health or similar codes and 
245.13 	standards applicable to housing. The amount of any grant shall not exceed the lesser of (a) 
245.14 	$6,000, or (b) the actual cost of the work performed, or (c) that portion of the cost of 
245.15 	rehabilitation which the agency determines cannot otherwise be paid by the person or family 
245.16 	without spending an unreasonable portion of the income of the person or family thereon. 
245.17 	In making grants, the agency shall determine the circumstances under which and the terms 
245.18 	and conditions under which all or any portion thereof will be repaid and shall determine the 
245.19 	appropriate security should repayment be required.
245.20 	(b) The agency may also make grants to rehabilitate or to assist in rehabilitating housing 
245.21 	under this subdivision to persons of low and moderate income for the purpose of qualifying 
245.22 	as foster parents.

245.23 	Sec. 8. Minnesota Statutes 2022, section 462A.05, subdivision 15b, is amended to read:
245.24 		Subd. 15b.Energy conservation, decarbonization, and climate resiliency grants. (a) 
245.25 	It may make grants to assist in energy conservation rehabilitation measures, decarbonization, 
245.26 	climate resiliency, and other qualified projects for existing owner occupied housing including, 
245.27 	but not limited to: insulation, storm windows and doors, furnace or space heater repair, 
245.28 	cleaning or replacement, chimney construction or improvement, weatherstripping and 
245.29 	caulking, and structural or other directly related repairs, or installations essential for energy 
245.30 	conservation, decarbonization, climate resiliency, and other qualified projects. The grant 
245.31 	to any household shall not exceed $2,000.
245.32 	(b) To be eligible for an emergency energy conservation, decarbonization, and climate 
245.33 	resiliency grant, a household must be certified as eligible to receive emergency residential 
245.34 	heating assistance under either the federal or the state program, and either (1) have had a 
246.1 	heating cost for the preceding heating season that exceeded 120 percent of the regional 
246.2 	average for the preceding heating season for that energy source as determined by the 
246.3 	commissioner of employment and economic development, or (2) be eligible to receive a 
246.4 	federal energy conservation grant, but be precluded from receiving the grant because of a 
246.5 	need for directly related repairs that cannot be paid for under the federal program. The 
246.6 	Housing Finance Agency shall make a reasonable effort to determine whether other state 
246.7 	or federal loan and grant programs are available and adequate to finance the intended 
246.8 	improvements. An emergency energy conservation grant may be made in conjunction with 
246.9 	grants or loans from other state or federal programs that finance other needed rehabilitation 
246.10 	work. The receipt of a grant pursuant to this section shall not affect the applicant's eligibility 
246.11 	for other Housing Finance Agency loan or grant programs.

246.12 	Sec. 9. Minnesota Statutes 2022, section 462A.05, subdivision 21, is amended to read:
246.13 		Subd. 21.Rental property loans. The agency may make or purchase loans to owners 
246.14 	of rental property that is occupied or intended for occupancy primarily by low- and 
246.15 	moderate-income tenants and which does not comply with the standards established in 
246.16 	section 326B.106, subdivision 1, for the purpose of energy improvements, decarbonization, 
246.17 	climate resiliency, and other qualified projects necessary to bring the property into full or 
246.18 	partial compliance with these standards. For property which meets the other requirements 
246.19 	of this subdivision, a loan may also be used for moderate rehabilitation of the property. The 
246.20 	authority granted in this subdivision is in addition to and not in limitation of any other 
246.21 	authority granted to the agency in this chapter. The limitations on eligible mortgagors 
246.22 	contained in section 462A.03, subdivision 13, do not apply to loans under this subdivision. 
246.23 	Loans for the improvement of rental property pursuant to this subdivision may contain 
246.24 	provisions that repayment is not required in whole or in part subject to terms and conditions 
246.25 	determined by the agency to be necessary and desirable to encourage owners to maximize 
246.26 	rehabilitation of properties.

246.27 	Sec. 10. Minnesota Statutes 2022, section 462A.05, subdivision 23, is amended to read:
246.28 		Subd. 23.Insuring financial institution loans. The agency may participate in loans or 
246.29 	establish a fund to insure loans, or portions of loans, that are made by any banking institution, 
246.30 	savings association, or other lender approved by the agency, organized under the laws of 
246.31 	this or any other state or of the United States having an office in this state, to owners of 
246.32 	renter-occupied homes or apartments that do not comply with standards set forth in section 
246.33 	326B.106, subdivision 1, without limitations relating to the maximum incomes of the owners 
246.34 	or tenants. The proceeds of the insured portion of the loan must be used to pay the costs of 
247.1 	improvements, including all related structural and other improvements, that will reduce 
247.2 	energy consumption, that will decarbonize, and that will ensure the climate resiliency of 
247.3 	housing.

247.4 	Sec. 11. Minnesota Statutes 2023 Supplement, section 462A.05, subdivision 45, is amended 
247.5 	to read:
247.6 		Subd. 45.Indian Tribes. Notwithstanding any other provision in this chapter, at its 
247.7 	discretion the agency may make any federally recognized Indian Tribe in Minnesota, or 
247.8 	their associated Tribally Designated Housing Entity (TDHE) as defined by United States 
247.9 	Code, title 25, section 4103(22), eligible for agency funding authorized under this chapter.

247.10 	Sec. 12. Minnesota Statutes 2022, section 462A.07, is amended by adding a subdivision 
247.11 	to read:
247.12 		Subd. 18.Rent and income limits. Notwithstanding any law to the contrary, to promote 
247.13 	efficiency in program administration, underwriting, and compliance, the commissioner may 
247.14 	adjust income or rent limits for any multifamily capital funding program authorized under 
247.15 	state law to align with federal rent or income limits in sections 42 and 142 of the Internal 
247.16 	Revenue Code of 1986, as amended. Adjustments made under this subdivision are exempt 
247.17 	from the rulemaking requirements of chapter 14.

247.18 	Sec. 13. Minnesota Statutes 2022, section 462A.07, is amended by adding a subdivision 
247.19 	to read:
247.20 		Subd. 19.Report to the legislature. (a) By February 15 each year, the commissioner 
247.21 	must submit a report to the chairs and ranking minority members of the legislative committees 
247.22 	having jurisdiction over housing finance and policy containing the following information:
247.23 	(1) the total number of applications for funding;
247.24 	(2) the amount of funding requested;
247.25 	(3) the amounts of funding awarded; and
247.26 	(4) the number of housing units that are affected by funding awards, including the number 
247.27 	of:
247.28 	(i) newly constructed owner-occupied units;
247.29 	(ii) renovated owner-occupied units;
247.30 	(iii) newly constructed rental units; and
248.1 	(iv) renovated rental units.
248.2 	(b) This reporting requirement applies to appropriations for competitive development 
248.3 	programs made in Laws 2023 and in subsequent laws.

248.4 	Sec. 14. Minnesota Statutes 2022, section 462A.07, is amended by adding a subdivision 
248.5 	to read:
248.6 		Subd. 20.Eligibility for agency programs.  The agency may determine that a household 
248.7 	or project unit meets the rent or income requirements for a program if the household or unit 
248.8 	receives or participates in income-based state or federal public assistance benefits, including 
248.9 	but not limited to:
248.10 	(1) child care assistance programs under chapter 119B;
248.11 	(2) general assistance, Minnesota supplemental aid, or food support under chapter 256D;
248.12 	(3) housing support under chapter 256I;
248.13 	(4) Minnesota family investment program and diversionary work program under chapter 
248.14 	256J; and
248.15 	(5) economic assistance programs under chapter 256P.

248.16 	Sec. 15. Minnesota Statutes 2022, section 462A.21, subdivision 7, is amended to read:
248.17 		Subd. 7.Energy efficiency loans. The agency may make loans to low and moderate 
248.18 	income persons who own existing residential housing for the purpose of improving the 
248.19 	efficient energy utilization decarbonization and climate resiliency of the housing. Permitted 
248.20 	improvements shall include installation or upgrading of ceiling, wall, floor and duct 
248.21 	insulation, storm windows and doors, and caulking and weatherstripping. The improvements 
248.22 	shall not be inconsistent with the energy standards as promulgated as part of the State 
248.23 	Building Code; provided that the improvements need not bring the housing into full 
248.24 	compliance with the energy standards. Any loan for such purpose shall be made only upon 
248.25 	determination by the agency that such loan is not otherwise available, wholly or in part, 
248.26 	from private lenders upon equivalent terms and conditions. The agency may promulgate 
248.27 	rules as necessary to implement and make specific the provisions of this subdivision. The 
248.28 	rules shall be designed to permit the state, to the extent not inconsistent with this chapter, 
248.29 	to seek federal grants or loans for energy purposes decarbonization, climate resiliency, and 
248.30 	other qualified projects.

249.1 	Sec. 16. Minnesota Statutes 2023 Supplement, section 462A.22, subdivision 1, is amended 
249.2 	to read:
249.3 		Subdivision 1.Agency debt ceiling capacity. The aggregate principal amount of general 
249.4 	obligation bonds and notes which are outstanding at any time, excluding the principal amount 
249.5 	of any bonds and notes refunded by the issuance of new bonds or notes, shall not exceed 
249.6 	the sum of $5,000,000,000 $9,000,000,000.

249.7 	Sec. 17. Minnesota Statutes 2022, section 462A.35, subdivision 2, is amended to read:
249.8 		Subd. 2.Expending funds. The agency may expend the money in the Minnesota 
249.9 	manufactured home relocation trust fund to the extent necessary to carry out the objectives 
249.10 	of section 327C.095, subdivision 13, by making payments to manufactured home owners, 
249.11 	or other parties approved by the third-party neutral, under subdivision 13, paragraphs (a) 
249.12 	and (e), and to pay the costs of administering the fund. Money in the fund is appropriated 
249.13 	to the agency for these purposes and to the commissioner of management and budget to pay 
249.14 	costs incurred by the commissioner of management and budget to administer the fund.

249.15 	Sec. 18. Minnesota Statutes 2023 Supplement, section 462A.37, subdivision 2, is amended 
249.16 	to read:
249.17 		Subd. 2.Authorization. (a) The agency may issue up to $30,000,000 in aggregate 
249.18 	principal amount of housing infrastructure bonds in one or more series to which the payment 
249.19 	made under this section may be pledged. The housing infrastructure bonds authorized in 
249.20 	this subdivision may be issued to fund loans, or grants for the purposes of clauses (4) and 
249.21 	(7), on terms and conditions the agency deems appropriate, made for one or more of the 
249.22 	following purposes:
249.23 	(1) to finance the costs of the construction, acquisition, and rehabilitation of supportive 
249.24 	housing where at least 50 percent of units are set aside for individuals and families who are 
249.25 	without a permanent residence;
249.26 	(2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned 
249.27 	housing to be used for affordable rental housing or for affordable home ownership and the 
249.28 	costs of new construction of rental housing on abandoned or foreclosed property where the 
249.29 	existing structures will be demolished or removed;
249.30 	(3) to finance that portion of the costs of acquisition of property that is attributable to 
249.31 	the land to be leased by community land trusts to low- and moderate-income home buyers;
250.1 	(4) to finance the acquisition, improvement, and infrastructure of manufactured home 
250.2 	parks under section 462A.2035, subdivision 1b;
250.3 	(5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction 
250.4 	of senior housing;
250.5 	(6) to finance the costs of acquisition, rehabilitation, and replacement of federally assisted 
250.6 	rental housing and for the refinancing of costs of the construction, acquisition, and 
250.7 	rehabilitation of federally assisted rental housing, including providing funds to refund, in 
250.8 	whole or in part, outstanding bonds previously issued by the agency or another government 
250.9 	unit to finance or refinance such costs;
250.10 	(7) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction 
250.11 	of single-family housing; and
250.12 	(8) to finance the costs of construction, acquisition, and rehabilitation of permanent 
250.13 	housing that is affordable to households with incomes at or below 50 percent of the area 
250.14 	median income for the applicable county or metropolitan area as published by the Department 
250.15 	of Housing and Urban Development, as adjusted for household size.; and
250.16 	(9) to finance the costs of construction, acquisition, rehabilitation, conversion, and 
250.17 	development of cooperatively owned housing created under chapter 308A, 308B, or 308C 
250.18 	that is affordable to low- and moderate-income households.
250.19 	(b) Among comparable proposals for permanent supportive housing, preference shall 
250.20 	be given to permanent supportive housing for veterans and other individuals or families 
250.21 	who:
250.22 	(1) either have been without a permanent residence for at least 12 months or at least four 
250.23 	times in the last three years; or
250.24 	(2) are at significant risk of lacking a permanent residence for 12 months or at least four 
250.25 	times in the last three years.
250.26 	(c) Among comparable proposals for senior housing, the agency must give priority to 
250.27 	requests for projects that:
250.28 	(1) demonstrate a commitment to maintaining the housing financed as affordable to 
250.29 	senior households;
250.30 	(2) leverage other sources of funding to finance the project, including the use of 
250.31 	low-income housing tax credits;
251.1 	(3) provide access to services to residents and demonstrate the ability to increase physical 
251.2 	supports and support services as residents age and experience increasing levels of disability; 
251.3 	and
251.4 	(4) include households with incomes that do not exceed 30 percent of the median 
251.5 	household income for the metropolitan area.
251.6 	(d) To the extent practicable, the agency shall balance the loans made between projects 
251.7 	in the metropolitan area and projects outside the metropolitan area. Of the loans made to 
251.8 	projects outside the metropolitan area, the agency shall, to the extent practicable, balance 
251.9 	the loans made between projects in counties or cities with a population of 20,000 or less, 
251.10 	as established by the most recent decennial census, and projects in counties or cities with 
251.11 	populations in excess of 20,000.
251.12 	(e) Among comparable proposals for permanent housing, the agency must give preference 
251.13 	to projects that will provide housing that is affordable to households at or below 30 percent 
251.14 	of the area median income.
251.15 	(f) If a loan recipient uses the loan for new construction or substantial rehabilitation as 
251.16 	defined by the agency on a building containing more than four units, the loan recipient must 
251.17 	construct, convert, or otherwise adapt the building to include:
251.18 	(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
251.19 	accessible units, as defined by section 1002 of the current State Building Code Accessibility 
251.20 	Provisions for Dwelling Units in Minnesota, and include and each accessible unit includes
251.21 	at least one roll-in shower, water closet, and kitchen work surface meeting the requirements 
251.22 	of section 1002 of the current State Building Code Accessibility Provisions for Dwelling 
251.23 	Units in Minnesota; and
251.24 	(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
251.25 	sensory-accessible units that include:
251.26 	(A) soundproofing between shared walls for first and second floor units;
251.27 	(B) no florescent lighting in units and common areas;
251.28 	(C) low-fume paint;
251.29 	(D) low-chemical carpet; and
251.30 	(E) low-chemical carpet glue in units and common areas.
251.31 	Nothing in this paragraph relieves a project funded by the agency from meeting other 
251.32 	applicable accessibility requirements.

252.1 	Sec. 19. Minnesota Statutes 2022, section 462A.37, is amended by adding a subdivision 
252.2 	to read:
252.3 		Subd. 2j.Additional authorization. In addition to the amount authorized in subdivisions 
252.4 	2 to 2i, the agency may issue up to $50,000,000 in one or more series to which the payments 
252.5 	under this section may be pledged.

252.6 	Sec. 20. Minnesota Statutes 2023 Supplement, section 462A.37, subdivision 5, is amended 
252.7 	to read:
252.8 		Subd. 5.Additional appropriation. (a) The agency must certify annually to the 
252.9 	commissioner of management and budget the actual amount of annual debt service on each 
252.10 	series of bonds issued under this section.
252.11 	(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure 
252.12 	bonds issued under subdivision 2a, or housing infrastructure bonds issued to refund those 
252.13 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
252.14 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
252.15 	the amount certified under paragraph (a), not to exceed $6,400,000 annually. The amounts 
252.16 	necessary to make the transfers are appropriated from the general fund to the commissioner 
252.17 	of management and budget.
252.18 	(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure 
252.19 	bonds issued under subdivision 2b, or housing infrastructure bonds issued to refund those 
252.20 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
252.21 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
252.22 	the amount certified under paragraph (a), not to exceed $800,000 annually. The amounts 
252.23 	necessary to make the transfers are appropriated from the general fund to the commissioner 
252.24 	of management and budget.
252.25 	(d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure 
252.26 	bonds issued under subdivision 2c, or housing infrastructure bonds issued to refund those 
252.27 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
252.28 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
252.29 	the amount certified under paragraph (a), not to exceed $2,800,000 annually. The amounts 
252.30 	necessary to make the transfers are appropriated from the general fund to the commissioner 
252.31 	of management and budget.
252.32 	(e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure 
252.33 	bonds issued under subdivision 2d, or housing infrastructure bonds issued to refund those 
253.1 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
253.2 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
253.3 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
253.4 	appropriated from the general fund to the commissioner of management and budget.
253.5 	(f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure 
253.6 	bonds issued under subdivision 2e, or housing infrastructure bonds issued to refund those 
253.7 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
253.8 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
253.9 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
253.10 	appropriated from the general fund to the commissioner of management and budget.
253.11 	(g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure 
253.12 	bonds issued under subdivision 2f, or housing infrastructure bonds issued to refund those 
253.13 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
253.14 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
253.15 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
253.16 	appropriated from the general fund to the commissioner of management and budget.
253.17 	(h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure 
253.18 	bonds issued under subdivision 2g, or housing infrastructure bonds issued to refund those 
253.19 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
253.20 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
253.21 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
253.22 	appropriated from the general fund to the commissioner of management and budget.
253.23 	(i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure 
253.24 	bonds issued under subdivision 2h, or housing infrastructure bonds issued to refund those 
253.25 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
253.26 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
253.27 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
253.28 	appropriated from the general fund to the commissioner of management and budget.
253.29 	(j) Each July 15, beginning in 2026 and through 2047, if any housing infrastructure 
253.30 	bonds issued under subdivision 2j, or housing infrastructure bonds issued to refund those 
253.31 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
253.32 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
253.33 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
253.34 	appropriated from the general fund to the commissioner of management and budget.
254.1 	(j)(k) The agency may pledge to the payment of the housing infrastructure bonds the 
254.2 	payments to be made by the state under this section.

254.3 	Sec. 21. Minnesota Statutes 2023 Supplement, section 462A.38, subdivision 2, is amended 
254.4 	to read:
254.5 		Subd. 2.Use of funds. (a) Grant funds and loans awarded under this program may be 
254.6 	used for:
254.7 	(1) development costs;
254.8 	(2) rehabilitation;
254.9 	(3) land development; and
254.10 	(4) affordability gap; and
254.11 	(4) (5) residential housing, including storm shelters and related community facilities.
254.12 	(b) A project funded through this program shall serve households that meet the income 
254.13 	limits as provided in section 462A.33, subdivision 5, unless a project is intended for the 
254.14 	purpose outlined in section 462A.02, subdivision 6.

254.15 	Sec. 22. Minnesota Statutes 2023 Supplement, section 462A.39, subdivision 2, is amended 
254.16 	to read:
254.17 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
254.18 	meanings given.
254.19 	(b) "Eligible project area" means a home rule charter or statutory city located outside 
254.20 	of a metropolitan county as defined in section 473.121, subdivision 4, with a population 
254.21 	exceeding 500; a community that has a combined population of 1,500 residents located 
254.22 	within 15 miles of a home rule charter or statutory city located outside a metropolitan county 
254.23 	as defined in section 473.121, subdivision 4; federally recognized Tribal reservations; or 
254.24 	an area served by a joint county-city economic development authority.
254.25 	(c) "Joint county-city economic development authority" means an economic development 
254.26 	authority formed under Laws 1988, chapter 516, section 1, as a joint partnership between 
254.27 	a city and county and excluding those established by the county only.
254.28 	(d) "Market rate residential rental properties" means properties that are rented at market 
254.29 	value, including new modular homes, new manufactured homes, and new manufactured 
254.30 	homes on leased land or in a manufactured home park, and may include rental developments 
254.31 	that have a portion of income-restricted units.
255.1 	(e) "Qualified expenditure" means expenditures for market rate residential rental 
255.2 	properties including acquisition of property; construction of improvements; and provisions 
255.3 	of loans or subsidies, grants, interest rate subsidies, public infrastructure, and related financing 
255.4 	costs.

255.5 	Sec. 23. Minnesota Statutes 2023 Supplement, section 462A.395, is amended to read:
255.6 	462A.395 GREATER MINNESOTA HOUSING INFRASTRUCTURE GRANT 
255.7 	PROGRAM.
255.8 		Subdivision 1.Grant program established. The commissioner of the Minnesota Housing 
255.9 	Finance Agency may make grants to counties and cities to provide up to 50 percent of the 
255.10 	capital costs of public infrastructure necessary for an eligible workforce housing development 
255.11 	project. The commissioner may make a grant award only after determining that nonstate 
255.12 	resources are committed to complete the project. The nonstate contribution may be cash, 
255.13 	other committed grant funds, or in kind. In-kind contributions may include the value of the 
255.14 	site, whether the site is prepared before or after the law appropriating money for the grant 
255.15 	is enacted.
255.16 		Subd. 2.Definitions. (a) For the purposes of this section, the following terms have the 
255.17 	meanings given.
255.18 	(b) "City" means a statutory or home rule charter city located outside the metropolitan 
255.19 	area, as defined in section 473.121, subdivision 2.
255.20 	(c) "Housing infrastructure" means publicly owned physical infrastructure necessary to 
255.21 	support housing development projects, including but not limited to sewers, water supply 
255.22 	systems, utility extensions, streets, wastewater treatment systems, stormwater management 
255.23 	systems, and facilities for pretreatment of wastewater to remove phosphorus.
255.24 		Subd. 3.Eligible projects. Housing projects eligible for a grant under this section may 
255.25 	be a single-family or multifamily housing development, and either owner-occupied or rental.
255.26 	Housing projects eligible for a grant under this section may also be a manufactured home 
255.27 	development qualifying for homestead treatment under section 273.124, subdivision 3a.
255.28 		Subd. 4.Application. (a) The commissioner must develop forms and procedures for 
255.29 	soliciting and reviewing applications for grants under this section. At a minimum, a city or 
255.30 	county must include in its application a resolution of the county board or city council 
255.31 	certifying that the required nonstate match is available. The commissioner must evaluate 
255.32 	complete applications for funding for eligible projects to determine that:
256.1 	(1) the project is necessary to increase sites available for housing development that will 
256.2 	provide adequate housing stock for the current or future workforce; and
256.3 	(2) the increase in workforce housing will result in substantial public and private capital 
256.4 	investment in the county or city in which the project would be located.
256.5 	(b) The determination of whether to make a grant for a site is within the discretion of 
256.6 	the commissioner, subject to this section. The commissioner's decisions and application of 
256.7 	the criteria are not subject to judicial review, except for abuse of discretion.
256.8 		Subd. 5.Maximum grant amount. A county or city may receive no more than $30,000
256.9 	$40,000 per lot for single-family, duplex, triplex, or fourplex housing developed, no more 
256.10 	than $60,000 per manufactured housing lot, and no more than $180,000 per lot for 
256.11 	multifamily housing with more than four units per building. A county or city may receive 
256.12 	no more than $500,000 in two years for one or more housing developments. The $500,000 
256.13 	limitation does not apply to use on manufactured housing developments.

256.14 	Sec. 24. Minnesota Statutes 2022, section 462A.40, subdivision 2, is amended to read:
256.15 		Subd. 2.Use of funds; grant and loan program. (a) The agency may award grants and 
256.16 	loans to be used for multifamily and single family developments for persons and families 
256.17 	of low and moderate income. Allowable use of the funds include: gap financing, as defined 
256.18 	in section 462A.33, subdivision 1; new construction; acquisition; rehabilitation; demolition 
256.19 	or removal of existing structures; construction financing; permanent financing; interest rate 
256.20 	reduction; and refinancing.
256.21 	(b) The agency may give preference for grants and loans to comparable proposals that 
256.22 	include regulatory changes or waivers that result in identifiable cost avoidance or cost 
256.23 	reductions, including but not limited to increased density, flexibility in site development 
256.24 	standards, or zoning code requirements.
256.25 	(c) The agency shall separately set aside:
256.26 	(1) at least ten percent of the financing under this section for housing units located in a 
256.27 	township or city with a population of 2,500 or less that is located outside the metropolitan 
256.28 	area, as defined in section 473.121, subdivision 2;
256.29 	(2) at least 35 percent of the financing under this section for housing for persons and 
256.30 	families whose income is 50 percent or less of the area median income for the applicable 
256.31 	county or metropolitan area as published by the Department of Housing and Urban 
256.32 	Development, as adjusted for household size; and
257.1 	(3) at least 25 percent of the financing under this section for single-family housing.
257.2 	(d) If by September 1 of each year the agency does not receive requests to use all of the 
257.3 	amounts set aside under paragraph (c), the agency may use any remaining financing for 
257.4 	other projects eligible under this section.

257.5 	Sec. 25. Minnesota Statutes 2022, section 462A.40, subdivision 3, is amended to read:
257.6 		Subd. 3.Eligible recipients; definitions; restrictions; use of funds. (a) The agency 
257.7 	may award a grant or a loan to any recipient that qualifies under subdivision 2. The agency 
257.8 	must not award a grant or a loan to a disqualified individual or disqualified business.
257.9 	(b) For the purposes of this subdivision disqualified individual means an individual who:
257.10 	(1) an individual who or an individual whose immediate family member made a 
257.11 	contribution to the account in the current or prior taxable year and received a credit certificate;
257.12 	(2) an individual who or an individual whose immediate family member owns the housing 
257.13 	for which the grant or loan will be used and is using that housing as their domicile;
257.14 	(3) an individual who meets the following criteria:
257.15 	(i) the individual is an officer or principal of a business entity; and
257.16 	(ii) that business entity made a contribution to the account in the current or previous 
257.17 	taxable year and received a credit certificate; or
257.18 	(4) an individual who meets the following criteria:
257.19 	(i) the individual directly owns, controls, or holds the power to vote 20 percent or more 
257.20 	of the outstanding securities of a business entity; and
257.21 	(ii) that business entity made a contribution to the account in the current or previous 
257.22 	taxable year and received a credit certificate.
257.23 	(c) For the purposes of this subdivision disqualified business means a business entity 
257.24 	that:
257.25 	(1) made a contribution to the account in the current or prior taxable year and received 
257.26 	a credit certificate;
257.27 	(2) has an officer or principal who is an individual who made a contribution to the 
257.28 	account in the current or previous taxable year and received a credit certificate; or
257.29 	(3) meets the following criteria:
258.1 	(i) the business entity is directly owned, controlled, or is subject to the power to vote 20 
258.2 	percent or more of the outstanding securities by an individual or business entity; and
258.3 	(ii) that controlling individual or business entity made a contribution to the account in 
258.4 	the current or previous taxable year and received a credit certificate.
258.5 	(d) The disqualifications in paragraphs (b) and (c) apply if the taxpayer would be 
258.6 	disqualified either individually or in combination with one or more members of the taxpayer's 
258.7 	family, as defined in the Internal Revenue Code, section 267(c)(4). For purposes of this 
258.8 	subdivision, "immediate family" means the taxpayer's spouse, parent or parent's spouse, 
258.9 	sibling or sibling's spouse, or child or child's spouse. For a married couple filing a joint 
258.10 	return, the limitations in this paragraph subdivision apply collectively to the taxpayer and 
258.11 	spouse. For purposes of determining the ownership interest of a taxpayer under paragraph 
258.12 	(a), clause (4), the rules under sections 267(c) and 267(e) of the Internal Revenue Code 
258.13 	apply.
258.14 	(e) Before applying for a grant or loan, all recipients must sign a disclosure that the 
258.15 	disqualifications under this subdivision do not apply. The Minnesota Housing Finance 
258.16 	Agency must prescribe the form of the disclosure. The Minnesota Housing Finance Agency 
258.17 	may rely on the disclosure to determine the eligibility of recipients under paragraph (a).
258.18 	(f) The agency may award grants or loans to a city as defined in section 462A.03, 
258.19 	subdivision 21; a federally recognized American Indian tribe or subdivision located in 
258.20 	Minnesota; a tribal housing corporation; a private developer; a nonprofit organization; a 
258.21 	housing and redevelopment authority under sections 469.001 to 469.047; a public housing 
258.22 	authority or agency authorized by law to exercise any of the powers granted by sections 
258.23 	469.001 to 469.047; or the owner of the housing. The provisions of subdivision 2, and 
258.24 	paragraphs (a) to (e) and (g) of this subdivision, regarding the use of funds and eligible 
258.25 	recipients apply to grants and loans awarded under this paragraph.
258.26 	(g) Except for the set-aside provided in subdivision 2, paragraph (d), Eligible recipients 
258.27 	must use the funds to serve households that meet the income limits as provided in section 
258.28 	462A.33, subdivision 5.

258.29 	Sec. 26. Minnesota Statutes 2023 Supplement, section 473.145, is amended to read:
258.30 	473.145 DEVELOPMENT GUIDE.
258.31 	(a) The Metropolitan Council must prepare and adopt, after appropriate study and such 
258.32 	public hearings as may be necessary, a comprehensive development guide for the 
258.33 	metropolitan area. It must consist of a compilation of policy statements, goals, standards, 
259.1 	programs, and maps prescribing guides for the orderly and economical development, public 
259.2 	and private, of the metropolitan area. The comprehensive development guide must recognize 
259.3 	and encompass physical, social, or economic needs of the metropolitan area and those future 
259.4 	developments which will have an impact on the entire area including but not limited to such 
259.5 	matters as land use, climate mitigation and adaptation, parks and open space land needs, 
259.6 	the necessity for and location of airports, highways, transit facilities, public hospitals, 
259.7 	libraries, schools, and other public buildings.
259.8 	(b) For the purposes of this section, "climate mitigation and adaptation" includes 
259.9 	mitigation goals and strategies that meet or exceed the greenhouse gas emissions-reduction 
259.10 	goals established by the state under section 216H.02, subdivision 1, and transportation 
259.11 	targets established by the commissioner of transportation, including vehicle miles traveled 
259.12 	reduction targets established in the statewide multimodal transportation plan under section 
259.13 	174.03, subdivision 1a, as well as plans and policies to address climate adaptation in the 
259.14 	region. The commissioner of transportation must consult with the Metropolitan Council on 
259.15 	transportation targets prior to establishing the targets.
259.16 	(c) Notwithstanding any other provision of law, no decision adopting or authorizing a 
259.17 	comprehensive plan shall be subject to the requirements of chapter 116D. Nothing in this 
259.18 	paragraph exempts individual projects, as defined by Minnesota Rules, part 4410.0200, 
259.19 	subpart 65, from the requirements of chapter 116D and applicable rules.

259.20 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
259.21 	final enactment and applies to all comprehensive plans and amendments adopted by any 
259.22 	local governmental unit, as defined under Minnesota Statutes, section 473.852, subdivision 
259.23 	7, and authorized by the Metropolitan Council during the most recent decennial review 
259.24 	under Minnesota Statutes, section 473.864, and for subsequent reviews under Minnesota 
259.25 	Statutes, section 473.864, thereafter. This section applies in the counties of Anoka, Carver, 
259.26 	Dakota, Hennepin, Ramsey, Scott, and Washington.

259.27 	Sec. 27. Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 2, is amended 
259.28 	to read:
259.29 		Subd. 2.Definitions. (a) For the purposes of this section, the following terms have the 
259.30 	meanings given:.
259.31 	(1) (b) "City distribution factor" means the number of households in a tier I city that are 
259.32 	cost-burdened divided by the total number of households that are cost-burdened in tier I 
259.33 	cities. The number of cost-burdened households shall be determined using the most recent 
260.1 	estimates or experimental estimates provided by the American Community Survey of the 
260.2 	United States Census Bureau as of May 1 of the aid calculation year;.
260.3 	(2) (c) "Cost-burdened household" means a household in which gross rent is 30 percent 
260.4 	or more of household income or in which homeownership costs are 30 percent or more of 
260.5 	household income;.
260.6 	(3) (d) "County distribution factor" means the number of households in a county that 
260.7 	are cost-burdened divided by the total number of households in metropolitan counties that 
260.8 	are cost-burdened. The number of cost-burdened households shall be determined using the 
260.9 	most recent estimates or experimental estimates provided by the American Community 
260.10 	Survey of the United States Census Bureau as of May 1 of the aid calculation year;.
260.11 	(e) "Locally funded housing expenditures" means expenditures of the aid recipient, 
260.12 	including expenditures by a public corporation or legal entity created by the aid recipient, 
260.13 	that are:
260.14 	(1) funded from the recipient's general fund, a property tax levy of the recipient or its 
260.15 	housing and redevelopment authority, or unrestricted money available to the recipient, but 
260.16 	not including tax increments; and
260.17 	(2) expended on one of the following qualifying activities:
260.18 	(i) financial assistance to residents in arrears on rent, mortgage, utilities, or property tax 
260.19 	payments;
260.20 	(ii) support services, case management services, and legal services for residents in arrears 
260.21 	on rent, mortgage, utilities, or property tax payments;
260.22 	(iii) down payment assistance or homeownership education, counseling, and training;
260.23 	(iv) acquisition, construction, rehabilitation, adaptive reuse, improvement, financing, 
260.24 	and infrastructure of residential dwellings;
260.25 	(v) costs of operating emergency shelter, transitional housing, supportive housing, or 
260.26 	publicly owned housing, including costs of providing case management services and support 
260.27 	services; and
260.28 	(vi) rental assistance.
260.29 	(4) (f) "Metropolitan area" has the meaning given in section 473.121, subdivision 2;
260.30 	(5) (g) "Metropolitan county" has the meaning given in section 473.121, subdivision 4;
260.31 	(6) (h) "Population" has the meaning given in section 477A.011, subdivision 3; and
261.1 	(7) (i) "Tier I city" means a statutory or home rule charter city that is a city of the first, 
261.2 	second, or third class and is located in a metropolitan county.

261.3 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2024.

261.4 	Sec. 28. Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 4, is amended 
261.5 	to read:
261.6 		Subd. 4.Qualifying projects. (a) Qualifying projects shall include:
261.7 	(1) emergency rental assistance for households earning less than 80 percent of area 
261.8 	median income as determined by the United States Department of Housing and Urban 
261.9 	Development;
261.10 	(2) financial support to nonprofit affordable housing providers in their mission to provide 
261.11 	safe, dignified, affordable and supportive housing; and
261.12 	(3) projects designed for the purpose of construction, acquisition, rehabilitation, 
261.13 	demolition or removal of existing structures, construction financing, permanent financing, 
261.14 	interest rate reduction, refinancing, and gap financing of housing to provide affordable 
261.15 	housing to households that have incomes which do not exceed, for homeownership projects, 
261.16 	115 percent of the greater of state or area median income as determined by the United States 
261.17 	Department of Housing and Urban Development, and for rental housing projects, 80 percent 
261.18 	of the greater of state or area median income as determined by the United States Department 
261.19 	of Housing and Urban Development, except that the housing developed or rehabilitated 
261.20 	with funds under this section must be affordable to the local work force;
261.21 	(4) financing the operations and management of financially distressed residential 
261.22 	properties;
261.23 	(5) funding of supportive services or staff of supportive services providers for supportive 
261.24 	housing as defined by section 462A.37, subdivision 1. Financial support to nonprofit housing 
261.25 	providers to finance supportive housing operations may be awarded as a capitalized reserve 
261.26 	or as an award of ongoing funding; and
261.27 	(6) costs of operating emergency shelter facilities, including the costs of providing 
261.28 	services.
261.29 	Projects shall be prioritized (b) Recipients must prioritize projects that provide affordable 
261.30 	housing to households that have incomes which do not exceed, for homeownership projects, 
261.31 	80 percent of the greater of state or area median income as determined by the United States 
261.32 	Department of Housing and Urban Development, and for rental housing projects, 50 percent 
262.1 	of the greater of state or area median income as determined by the United States Department 
262.2 	of Housing and Urban Development. Priority may be given to projects that: reduce disparities 
262.3 	in home ownership; reduce housing cost burden, housing instability, or homelessness; 
262.4 	improve the habitability of homes; create accessible housing; or create more energy- or 
262.5 	water-efficient homes.
262.6 	(b) (c) Gap financing is either:
262.7 	(1) the difference between the costs of the property, including acquisition, demolition, 
262.8 	rehabilitation, and construction, and the market value of the property upon sale; or
262.9 	(2) the difference between the cost of the property and the amount the targeted household 
262.10 	can afford for housing, based on industry standards and practices.
262.11 	(c) (d) If aid under this section is used for demolition or removal of existing structures, 
262.12 	the cleared land must be used for the construction of housing to be owned or rented by 
262.13 	persons who meet the income limits of paragraph (a).
262.14 	(d) (e) If an aid recipient uses the aid on new construction or substantial rehabilitation
262.15 	of a building containing more than four units, the loan recipient must construct, convert, or 
262.16 	otherwise adapt the building to include:
262.17 	(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
262.18 	accessible units, as defined by section 1002 of the current State Building Code Accessibility 
262.19 	Provisions for Dwelling Units in Minnesota, and include and each accessible unit includes
262.20 	at least one roll-in shower, water closet, and kitchen work surface meeting the requirements 
262.21 	of section 1002 of the current State Building Code Accessibility Provisions for Dwelling 
262.22 	Units in Minnesota; and
262.23 	(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
262.24 	sensory-accessible units that include:
262.25 	(A) soundproofing between shared walls for first and second floor units;
262.26 	(B) no florescent lighting in units and common areas;
262.27 	(C) low-fume paint;
262.28 	(D) low-chemical carpet; and
262.29 	(E) low-chemical carpet glue in units and common areas.
262.30 	Nothing in this paragraph relieves a project funded by this section from meeting other 
262.31 	applicable accessibility requirements.

263.1 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2024.

263.2 	Sec. 29. Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 5, is amended 
263.3 	to read:
263.4 		Subd. 5.Use of proceeds. (a) Any funds distributed under this section must be spent on 
263.5 	a qualifying project. Funds are considered spent on a qualifying project if:
263.6 	(1) a tier I city or county demonstrates to the Minnesota Housing Finance Agency that 
263.7 	the city or county cannot expend funds on a qualifying project by the deadline imposed by 
263.8 	paragraph (b) due to factors outside the control of the city or county; and
263.9 	(2) the funds are transferred to a local housing trust fund.
263.10 	Funds transferred to a local housing trust fund under this paragraph must be spent on a 
263.11 	project or household that meets the affordability requirements of subdivision 4, paragraph 
263.12 	(a).
263.13 	(b) Funds must be spent by December 31 in the third year following the year after the 
263.14 	aid was received. The requirements of this paragraph are satisfied if funds are:
263.15 	(1) committed to a qualifying project by December 31 in the third year following the 
263.16 	year after the aid was received; and
263.17 	(2) expended by December 31 in the fourth year following the year after the aid was 
263.18 	received.
263.19 	(c) An aid recipient may not use aid money to reimburse itself for prior expenditures.

263.20 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2024.

263.21 	Sec. 30. Minnesota Statutes 2023 Supplement, section 477A.35, is amended by adding a 
263.22 	subdivision to read:
263.23 		Subd. 5a.Conditions for receipt. (a) As a condition of receiving aid under this section, 
263.24 	a recipient must commit to using funds to supplement, not supplant, existing locally funded 
263.25 	housing expenditures, so that the recipient is using the funds to create new or to expand 
263.26 	existing housing programs.
263.27 	(b) In the annual report required under subdivision 6, a recipient must certify its 
263.28 	compliance with this subdivision, including an accounting of locally funded housing 
263.29 	expenditures in the prior fiscal year. In a tier I city's or county's first report to the Minnesota 
263.30 	Housing Finance Agency, it must document its locally funded housing expenditures in the 
263.31 	two prior fiscal years. If a recipient reduces one of its locally funded housing expenditures, 
264.1 	the recipient must detail the expenditure, the amount of the reduction, and the reason for 
264.2 	the reduction. The certification required under this paragraph must be made available publicly 
264.3 	on the website of the recipient.

264.4 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2024.

264.5 	Sec. 31. Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 6, is amended 
264.6 	to read:
264.7 		Subd. 6.Administration. (a) The commissioner of revenue must compute the amount 
264.8 	of aid payable to each tier I city and county under this section. By August 1 of each year, 
264.9 	the commissioner must certify the distribution factors of each tier I city and county to be 
264.10 	used in the following year. The commissioner must pay local affordable housing aid annually 
264.11 	at the times provided in section 477A.015, distributing the amounts available on the 
264.12 	immediately preceding June 1 under the accounts established in section 477A.37, subdivisions 
264.13 	2 and 3.
264.14 	(b) Beginning in 2025, tier I cities and counties shall submit a report annually, no later 
264.15 	than December 1 of each year, to the Minnesota Housing Finance Agency. The report must 
264.16 	include documentation of the location of any unspent funds distributed under this section 
264.17 	and of qualifying projects completed or planned with funds under this section. If a tier I 
264.18 	city or county fails to submit a report, if a tier I city or county fails to spend funds within 
264.19 	the timeline imposed under subdivision 5, paragraph (b), or if a tier I city or county uses 
264.20 	funds for a project that does not qualify under this section, or if a tier I city or county fails 
264.21 	to meet its requirements of subdivision 5a, the Minnesota Housing Finance Agency shall 
264.22 	notify the Department of Revenue and the cities and counties that must repay funds under 
264.23 	paragraph (c) by February 15 of the following year.
264.24 	(c) By May 15, after receiving notice from the Minnesota Housing Finance Agency, a 
264.25 	tier I city or county must pay to the Minnesota Housing Finance Agency funds the city or 
264.26 	county received under this section if the city or county:
264.27 	(1) fails to spend the funds within the time allowed under subdivision 5, paragraph (b);
264.28 	(2) spends the funds on anything other than a qualifying project; or
264.29 	(3) fails to submit a report documenting use of the funds.; or
264.30 	(4) fails to meet the requirements of subdivision 5a.
264.31 	(d) The commissioner of revenue must stop distributing funds to a tier I city or county 
264.32 	that requests in writing that the commissioner stop payment or that, in three consecutive 
265.1 	years, the Minnesota Housing Finance Agency has reported, pursuant to paragraph (b), to 
265.2 	have failed to use funds, misused funds, or failed to report on its use of funds. A request to 
265.3 	stop payment under this paragraph must be submitted to the commissioner in the form and 
265.4 	manner prescribed by the commissioner on or before May 1 of the aids payable year the 
265.5 	aid recipient wants the commissioner to stop payment of aid. The commissioner shall not 
265.6 	stop payment based on a request received after May 1 until the next aids payable year.
265.7 	(e) The commissioner may resume distributing funds to a tier I city or county to which 
265.8 	the commissioner has stopped payments in the year following the August 1 after the 
265.9 	Minnesota Housing Finance Agency certifies that the city or county has submitted 
265.10 	documentation of plans for a qualifying project. The commissioner may resume distributing 
265.11 	funds to a tier I city or county to which the commissioner has stopped payments at the 
265.12 	request of the city or county in the year following the August 1 after the Minnesota Housing 
265.13 	Finance Agency certifies that the city or county has submitted documentation of plans for 
265.14 	a qualifying project.
265.15 	(f) By June 1, any funds paid to the Minnesota Housing Finance Agency under paragraph 
265.16 	(c) must be deposited in the housing development fund. Funds deposited under this paragraph 
265.17 	are appropriated to the commissioner of the Minnesota Housing Finance Agency for use 
265.18 	on the family homeless prevention and assistance program under section 462A.204, the 
265.19 	economic development and housing challenge program under section 462A.33, and the 
265.20 	workforce and affordable homeownership development program under section 462A.38.

265.21 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2025.

265.22 	Sec. 32. Minnesota Statutes 2023 Supplement, section 477A.36, subdivision 1, as amended 
265.23 	by Laws 2024, chapter 76, section 4, is amended to read:
265.24 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
265.25 	the meanings given:.
265.26 	(1) (b) "City distribution factor" means the number of households in a tier I city that are 
265.27 	cost-burdened divided by the total number of households that are cost-burdened in Minnesota 
265.28 	tier I cities. The number of cost-burdened households shall be determined using the most 
265.29 	recent estimates or experimental estimates provided by the American Community Survey 
265.30 	of the United States Census Bureau as of May 1 of the aid calculation year;.
265.31 	(2) (c) "Cost-burdened household" means a household in which gross rent is 30 percent 
265.32 	or more of household income or in which homeownership costs are 30 percent or more of 
265.33 	household income;.
266.1 	(3) (d) "County distribution factor" means the number of households in a county that 
266.2 	are cost-burdened divided by the total number of households in Minnesota that are 
266.3 	cost-burdened. The number of cost-burdened households shall be determined using the most 
266.4 	recent estimates or experimental estimates provided by the American Community Survey 
266.5 	of the United States Census Bureau as of May 1 of the aid calculation year;.
266.6 	(4) (e) "Eligible Tribal Nation" means any of the 11 federally recognized Indian Tribes 
266.7 	located in Minnesota which submit an application under subdivision 6, paragraph (g);.
266.8 	(f) "Locally funded housing expenditures" means expenditures of the aid recipient, 
266.9 	including expenditures by a public corporation or legal entity created by the aid recipient, 
266.10 	that are:
266.11 	(1) funded from the recipient's general fund, a property tax levy of the recipient or its 
266.12 	housing and redevelopment authority, or unrestricted money available to the recipient, but 
266.13 	not including tax increments; and
266.14 	(2) expended on one of the following qualifying activities:
266.15 	(i) financial assistance to residents in arrears on rent, mortgage, utilities, or property tax 
266.16 	payments;
266.17 	(ii) support services, case management services, and legal services for residents in arrears 
266.18 	on rent, mortgage, utilities, or property tax payments;
266.19 	(iii) down payment assistance or homeownership education, counseling, and training;
266.20 	(iv) acquisition, construction, rehabilitation, adaptive reuse, improvement, financing, 
266.21 	and infrastructure of residential dwellings;
266.22 	(v) costs of operating emergency shelter, transitional housing, supportive housing, or 
266.23 	publicly owned housing, including costs of providing case management services and support 
266.24 	services; and
266.25 	(vi) rental assistance.
266.26 	(5) (g) "Population" has the meaning given in section 477A.011, subdivision 3;.
266.27 	(6) (h) "Tier I city" means a statutory or home rule charter city that is a city of the first, 
266.28 	second, or third class and is not located in a metropolitan county, as defined by section 
266.29 	473.121, subdivision 4; and.
266.30 	(7) (i) "Tier II city" means a statutory or home rule charter city that is a city of the fourth 
266.31 	class and is not located in a metropolitan county, as defined by section 473.121, subdivision 
266.32 	4.

267.1 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2024.

267.2 	Sec. 33. Minnesota Statutes 2023 Supplement, section 477A.36, subdivision 4, is amended 
267.3 	to read:
267.4 		Subd. 4.Qualifying projects. (a) Qualifying projects shall include:
267.5 	(1) emergency rental assistance for households earning less than 80 percent of area 
267.6 	median income as determined by the United States Department of Housing and Urban 
267.7 	Development;
267.8 	(2) financial support to nonprofit affordable housing providers in their mission to provide 
267.9 	safe, dignified, affordable and supportive housing;
267.10 	(3) outside the metropolitan counties as defined in section 473.121, subdivision 4, 
267.11 	development of market rate residential rental properties, as defined in section 462A.39, 
267.12 	subdivision 2, paragraph (d), if the relevant unit of government submits with the report 
267.13 	required under subdivision 6 a resolution and supporting documentation showing that the 
267.14 	area meets the requirements of section 462A.39, subdivision 4, paragraph (a); and
267.15 	(4) projects designed for the purpose of construction, acquisition, rehabilitation, 
267.16 	demolition or removal of existing structures, construction financing, permanent financing, 
267.17 	interest rate reduction, refinancing, and gap financing of housing to provide affordable 
267.18 	housing to households that have incomes which do not exceed, for homeownership projects, 
267.19 	115 percent of the greater of state or area median income as determined by the United States 
267.20 	Department of Housing and Urban Development and, for rental housing projects, 80 percent 
267.21 	of the greater of state or area median income as determined by the United States Department 
267.22 	of Housing and Urban Development, except that the housing developed or rehabilitated 
267.23 	with funds under this section must be affordable to the local work force.;
267.24 	(5) financing the operations and management of financially distressed residential 
267.25 	properties;
267.26 	(6) funding of supportive services or staff of supportive services providers for supportive 
267.27 	housing as defined in section 462A.37, subdivision 1. Financial support to nonprofit housing 
267.28 	providers to finance supportive housing operations may be awarded as a capitalized reserve 
267.29 	or as an award of ongoing funding; and
267.30 	(7) costs of operating emergency shelter facilities, including the costs of providing 
267.31 	services.
268.1 	Projects shall be prioritized (b) Recipients must prioritize projects that provide affordable 
268.2 	housing to households that have incomes that do not exceed, for homeownership projects, 
268.3 	80 percent of the greater of state or area median income as determined by the United States 
268.4 	Department of Housing and Urban Development, and for rental housing projects, 50 percent 
268.5 	of the greater of state or area median income as determined by the United States Department 
268.6 	of Housing and Urban Development. Priority may be given to projects that: reduce disparities 
268.7 	in home ownership; reduce housing cost burden, housing instability, or homelessness; 
268.8 	improve the habitability of homes; create accessible housing; or create more energy- or 
268.9 	water-efficient homes.
268.10 	(b) (c) Gap financing is either:
268.11 	(1) the difference between the costs of the property, including acquisition, demolition, 
268.12 	rehabilitation, and construction, and the market value of the property upon sale; or
268.13 	(2) the difference between the cost of the property and the amount the targeted household 
268.14 	can afford for housing, based on industry standards and practices.
268.15 	(c) (d) If aid under this section is used for demolition or removal of existing structures, 
268.16 	the cleared land must be used for the construction of housing to be owned or rented by 
268.17 	persons who meet the income limits of paragraph (a).
268.18 	(d) (e) If an aid recipient uses the aid on new construction or substantial rehabilitation
268.19 	of a building containing more than four units, the loan recipient must construct, convert, or 
268.20 	otherwise adapt the building to include:
268.21 	(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
268.22 	accessible units, as defined by section 1002 of the current State Building Code Accessibility 
268.23 	Provisions for Dwelling Units in Minnesota, and include and each accessible unit includes
268.24 	at least one roll-in shower, water closet, and kitchen work surface meeting the requirements 
268.25 	of section 1002 of the current State Building Code Accessibility Provisions for Dwelling 
268.26 	Units in Minnesota; and
268.27 	(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
268.28 	sensory-accessible units that include:
268.29 	(A) soundproofing between shared walls for first and second floor units;
268.30 	(B) no florescent lighting in units and common areas;
268.31 	(C) low-fume paint;
268.32 	(D) low-chemical carpet; and
269.1 	(E) low-chemical carpet glue in units and common areas.
269.2 	Nothing in this paragraph relieves a project funded by this section from meeting other 
269.3 	applicable accessibility requirements.

269.4 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2024.

269.5 	Sec. 34. Minnesota Statutes 2023 Supplement, section 477A.36, subdivision 5, is amended 
269.6 	to read:
269.7 		Subd. 5.Use of proceeds. (a) Any funds distributed under this section must be spent on 
269.8 	a qualifying project. If a tier I city or county demonstrates to the Minnesota Housing Finance 
269.9 	Agency that the tier I city or county cannot expend funds on a qualifying project by the 
269.10 	deadline imposed by paragraph (b) due to factors outside the control of the tier I city or 
269.11 	county, funds shall be considered spent on a qualifying project if the funds are transferred 
269.12 	to a local housing trust fund. Funds transferred to a local housing trust fund must be spent 
269.13 	on a project or household that meets the affordability requirements of subdivision 4, 
269.14 	paragraph (a).
269.15 	(b) Any funds must be returned to the commissioner of revenue if the funds are not spent 
269.16 	by December 31 in the third year following the year after the aid was received. Funds must 
269.17 	be spent by December 31 in the third year following the year after the aid was received. 
269.18 	The requirements of this paragraph are satisfied if funds are:
269.19 	(1) committed to a qualifying project by December 31 in the third year following the 
269.20 	year after the aid was received; and
269.21 	(2) expended by December 31 in the fourth year following the year after the aid was 
269.22 	received.
269.23 	(c) An aid recipient may not use aid funds to reimburse itself for prior expenditures.

269.24 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2024.

269.25 	Sec. 35. Minnesota Statutes 2023 Supplement, section 477A.36, is amended by adding a 
269.26 	subdivision to read:
269.27 		Subd. 5a.Conditions for receipt. (a) As a condition of receiving aid under this section, 
269.28 	a recipient must commit to using money to supplement, not supplant, existing locally funded 
269.29 	housing expenditures, so that the recipient is using the funds to create new or to expand 
269.30 	existing housing programs.
270.1 	(b) In the annual report required under subdivision 6, a recipient must certify compliance 
270.2 	with this subdivision, including an accounting of locally funded housing expenditures in 
270.3 	the prior fiscal year. In an aid recipient's first report to the Minnesota Housing Finance 
270.4 	Agency, the aid recipient must document its locally funded housing expenditures in the two 
270.5 	prior fiscal years. If a recipient reduces one of its locally funded housing expenditures, the 
270.6 	recipient must detail the expenditure, the amount of the reduction, and the reason for the 
270.7 	reduction. The certification required under this paragraph must be made available publicly 
270.8 	on the recipient's website.

270.9 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2024.

270.10 	Sec. 36. Minnesota Statutes 2023 Supplement, section 477A.36, subdivision 6, as amended 
270.11 	by Laws 2024, chapter 76, section 5, is amended to read:
270.12 		Subd. 6.Administration. (a) The commissioner of revenue must compute the amount 
270.13 	of aid payable to each aid recipient under this section. Beginning with aids payable in 
270.14 	calendar year 2024, before computing the amount of aid for counties and after receiving 
270.15 	the report required by subdivision 3, paragraph (e), the commissioner shall compute the 
270.16 	amount necessary to increase the amount in the account or accounts established under that 
270.17 	paragraph to $1,250,000. The amount calculated under the preceding sentence shall be 
270.18 	deducted from the amount available to counties for the purposes of certifying the amount 
270.19 	of aid to be paid to counties in the following year. By August 1 of each year, the 
270.20 	commissioner must certify the amount to be paid to each tier I city and county in the 
270.21 	following year. The commissioner must pay statewide local housing aid to tier I cities and 
270.22 	counties annually at the times provided in section 477A.015. Before paying the first 
270.23 	installment of aid annually, the commissioner of revenue shall transfer to the Minnesota 
270.24 	Housing Finance Agency from the funds available for counties, for deposit in the account 
270.25 	or accounts established under subdivision 3, paragraph (e), the amount computed in the 
270.26 	prior year to be necessary to increase the amount in the account or accounts established 
270.27 	under that paragraph to $1,250,000.
270.28 	(b) Beginning in 2025, aid recipients shall submit a report annually, no later than 
270.29 	December 1 of each year, to the Minnesota Housing Finance Agency. The report shall 
270.30 	include documentation of the location of any unspent funds distributed under this section 
270.31 	and of qualifying projects completed or planned with funds under this section. If an aid 
270.32 	recipient fails to submit a report, fails to spend funds within the timeline imposed under 
270.33 	subdivision 5, paragraph (b), or uses funds for a project that does not qualify under this 
270.34 	section, or if an aid recipient fails to meet the requirements of subdivision 5a, the Minnesota 
271.1 	Housing Finance Agency shall notify the Department of Revenue and the aid recipient must 
271.2 	repay funds under paragraph (c) by February 15 of the following year.
271.3 	(c) By May 15, after receiving notice from the Minnesota Housing Finance Agency, an 
271.4 	aid recipient must pay to the Minnesota Housing Finance Agency funds the aid recipient 
271.5 	received under this section if the aid recipient:
271.6 	(1) fails to spend the funds within the time allowed under subdivision 5, paragraph (b);
271.7 	(2) spends the funds on anything other than a qualifying project; or
271.8 	(3) fails to submit a report documenting use of the funds.; or
271.9 	(4) fails to meet the requirements of subdivision 5a.
271.10 	(d) The commissioner of revenue must stop distributing funds to an aid recipient that 
271.11 	requests in writing that the commissioner stop payment or that the Minnesota Housing 
271.12 	Finance Agency reports to have, in three consecutive years, failed to use funds, misused 
271.13 	funds, or failed to report on its use of funds. A request to stop payment under this paragraph 
271.14 	must be submitted to the commissioner in the form and manner prescribed by the 
271.15 	commissioner on or before May 1 of the year prior to the aids payable year in which the 
271.16 	aid recipient wants the commissioner to stop payment of aid. The commissioner shall not 
271.17 	stop payment based on a request received after May 1 until aids payable based on certification 
271.18 	in the following calendar year.
271.19 	(e) The commissioner may resume distributing funds to an aid recipient to which the 
271.20 	commissioner has stopped payments in the year following the August 1 after the Minnesota 
271.21 	Housing Finance Agency certifies that the city or county has submitted documentation of 
271.22 	plans for a qualifying project. The commissioner may resume distributing funds to an aid 
271.23 	recipient to which the commissioner has stopped payments at the request of the recipient 
271.24 	in the year following the August 1 after the Minnesota Housing Finance Agency certifies 
271.25 	that the recipient has submitted documentation of plans for a qualifying project.
271.26 	(f) By June 1, any funds paid to the Minnesota Housing Finance Agency under paragraph 
271.27 	(c) must be deposited in the housing development fund. Funds deposited under this paragraph 
271.28 	are appropriated to the commissioner of the Minnesota Housing Finance Agency for use 
271.29 	on the family homeless prevention and assistance program under section 462A.204, the 
271.30 	economic development and housing challenge program under section 462A.33, and the 
271.31 	workforce and affordable homeownership development program under section 462A.38.
271.32 	(g) An eligible Tribal Nation may choose to receive an aid distribution under this section 
271.33 	by submitting an application under this subdivision. An eligible Tribal Nation which has 
272.1 	not received a distribution in a prior aids payable year may elect to begin participation in 
272.2 	the program by submitting an application in the manner and form prescribed by the 
272.3 	commissioner of revenue by January 15 of the aids payable year. In order to receive a 
272.4 	distribution, an eligible Tribal Nation must certify to the commissioner of revenue the most 
272.5 	recent estimate of the total number of enrolled members of the eligible Tribal Nation. The 
272.6 	information must be annually certified by March 1 in the form prescribed by the 
272.7 	commissioner of revenue. The commissioner of revenue must annually calculate and certify 
272.8 	the amount of aid payable to each eligible Tribal Nation on or before August 1 of the aids 
272.9 	payable year. The commissioner of revenue must pay statewide local housing aid to eligible 
272.10 	Tribal Nations annually by December 27 of the year the aid is certified.

272.11 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2025.

272.12 	Sec. 37. Laws 2023, chapter 37, article 1, section 2, subdivision 32, is amended to read:

272.13	Subd. 32.Northland Foundation
 		1,000,000
		-0-
	
272.14 	This appropriation is for a grant to Northland 
272.15 	Foundation for use on expenditures authorized 
272.16 	under Minnesota Statutes, section 462C.16, 
272.17 	subdivision 3, to assist and support 
272.18 	communities in providing housing locally, and 
272.19 	on for assisting local governments to establish 
272.20 	local or regional housing trust funds. 
272.21 	Northland Foundation may award grants and 
272.22 	loans to other entities to expend on authorized 
272.23 	expenditures under this section. This 
272.24 	appropriation is onetime and available until 
272.25 	June 30, 2025.

272.26 	Sec. 38. Laws 2023, chapter 37, article 2, section 6, subdivision 1, is amended to read:
272.27 		Subdivision 1.Establishment. The Minnesota Housing Finance Agency shall establish 
272.28 	a community stabilization program to provide grants or loans to preserve naturally occurring 
272.29 	affordable housing through acquisition or rehabilitation and support recapitalization of 
272.30 	distressed buildings.

273.1 	Sec. 39. Laws 2023, chapter 37, article 2, section 6, subdivision 2, is amended to read:
273.2 		Subd. 2.Definitions. (a) For the purposes of this section, the following terms have the 
273.3 	meanings given.
273.4 	(b) "Naturally occurring affordable housing" means:
273.5 	(1) multiunit rental housing that:
273.6 	(i) is at least 20 years old;
273.7 	(ii) has rents in a majority of units that are affordable to households at or below 60 
273.8 	percent of the greater of state or area median income as determined by the United States 
273.9 	Department of Housing and Urban Development; and
273.10 	(iii) does not currently have federal or state financing or tax credits that require income 
273.11 	or rent restrictions, except for public housing, as defined in Section 9 of the Housing Act 
273.12 	of 1937, that is part of a mixed-finance community; or
273.13 	(2) owner-occupied housing located in communities where market pressures or significant 
273.14 	deferred rehabilitation needs, as defined by the agency, create opportunities for displacement 
273.15 	or the loss of owner-occupied housing affordable to households at or below 115 percent of 
273.16 	the greater of state or area median income as determined by the United States Department 
273.17 	of Housing and Urban Development.
273.18 	(2) single-family housing that is:
273.19 	(i) one to four units;
273.20 	(ii) located in communities where market pressures or significant deferred rehabilitation 
273.21 	needs, as defined by the agency, create opportunities for displacement or the loss of 
273.22 	owner-occupied or single-family rental housing; and
273.23 	(iii) affordable to owner-occupied households at or below 115 percent or rental 
273.24 	households at or below 80 percent of the greater of state or area median income as determined 
273.25 	by the United States Department of Housing and Urban Development.
273.26 	(c) "Distressed building" means an existing rental housing building in which the units 
273.27 	are restricted to households at or below 60 percent of the area median income and that:
273.28 	(1) is at imminent risk of foreclosure, closure, or sale that would result in permanent 
273.29 	loss of affordability;
273.30 	(2) has two or more years of negative net operating income, exclusive of financial or 
273.31 	in-kind operating support from the owner of the property;
274.1 	(3) has two or more years with a debt service coverage ratio less than one; or
274.2 	(4) has necessary costs of repair, replacement, or maintenance that exceed the project 
274.3 	reserves available for those purposes.
274.4 	(d) "Recapitalization" means financing for the physical and financial needs of a distressed 
274.5 	building, including restructuring and forgiveness of amortizing and deferred debt, principal 
274.6 	and interest paydown, interest rate write-down, deferral of debt payments, mortgage payment 
274.7 	forbearance, deferred maintenance and rehabilitation, funding of reserves, and property 
274.8 	operating costs including but not limited to supportive services, security services, and 
274.9 	property insurance. Recapitalization may include financing to sell or transfer ownership of 
274.10 	a property to a qualified owner that will commit to long-term affordability as determined 
274.11 	by the commissioner.

274.12 	Sec. 40. Laws 2023, chapter 37, article 2, section 6, subdivision 4, is amended to read:
274.13 		Subd. 4.Eligible uses. (a) The program shall provide grants or loans for the purpose of 
274.14 	acquisition, rehabilitation, interest rate reduction, or gap financing of housing to support 
274.15 	the preservation of naturally occurring affordable housing or recapitalization of distressed 
274.16 	buildings.
274.17 	(b) When awarding grants or loans for the acquisition or rehabilitation of naturally 
274.18 	occurring affordable housing, priority in funding shall be given to proposals that serve 
274.19 	lower-income households and maintain longer periods of affordability. Funding may be 
274.20 	used to acquire single-family rental housing that is intended to be converted to affordable 
274.21 	homeownership.
274.22 	(c) When awarding grants or loans for the recapitalization of distressed buildings, to the 
274.23 	extent practicable, priority in funding shall be given to the following:
274.24 	(1) buildings where residents are at or below 30 percent of the area median income;
274.25 	(2) buildings at imminent risk of foreclosure, closure, or sale that would result in 
274.26 	permanent loss of affordability;
274.27 	(3) operators who have a path to achieve neutral or positive net operating income within 
274.28 	five years;
274.29 	(4) operators who keep subject properties affordable; and
274.30 	(5) buildings that are not eligible or not prioritized for other agency programs.
274.31 	(d) The agency may establish funding limits per eligible recipient and require priority 
274.32 	rankings of eligible recipient proposals.
275.1 	(e) Funds may not be used for publicly owned housing.

275.2 	Sec. 41. Laws 2023, chapter 37, article 2, section 6, subdivision 5, is amended to read:
275.3 		Subd. 5.Owner-occupied Single-family housing income limits. Households served 
275.4 	through grants or loans related to owner-occupied single-family housing must have, at initial 
275.5 	occupancy, income that is at or below 115 percent of the greater of state or area median 
275.6 	income as determined by the United States Department of Housing and Urban Development.

275.7 	Sec. 42. Laws 2023, chapter 37, article 2, section 6, is amended by adding a subdivision 
275.8 	to read:
275.9 		Subd. 6a.Private lender participation. Prior to the commissioner executing a grant or 
275.10 	loan agreement for recapitalization of private debt, a project owner must demonstrate 
275.11 	receiving a meaningful amount, as determined by the commissioner, of restructuring and 
275.12 	forgiveness of amortizing and deferred debt, principal and interest paydown, interest rate 
275.13 	write-down, deferral of debt payments, and mortgage payment forbearance from a private 
275.14 	lender.

275.15 	Sec. 43. Laws 2023, chapter 37, article 2, section 6, is amended by adding a subdivision 
275.16 	to read:
275.17 		Subd. 9.Report. By February 15, 2025, and February 15, 2026, the commissioner shall 
275.18 	submit a report to the chairs and ranking minority members of the legislative committees 
275.19 	having jurisdiction over housing and homelessness. The report must include the number of 
275.20 	applications received, the amount of funding requested, the grants awarded, and the number 
275.21 	of affordable housing units preserved through awards under this section.

275.22 	Sec. 44. Laws 2023, chapter 37, article 2, section 12, subdivision 2, is amended to read:
275.23 		Subd. 2.Eligible homebuyer. For the purposes of this section, an "eligible homebuyer" 
275.24 	means an individual:
275.25 	(1) whose income is at or below 130 percent of area median income;
275.26 	(2) who resides in a census tract where at least 60 percent of occupied housing units are 
275.27 	renter-occupied, based on the most recent estimates or experimental estimates provided by 
275.28 	the American Community Survey of the United States Census Bureau;
275.29 	(3) (2) who is financing the purchase of an eligible property with an interest-free, 
275.30 	fee-based mortgage; and
276.1 	(4) (3) who is a first-time homebuyer as defined by Code of Federal Regulations, title 
276.2 	24, section 92.2.

276.3 	Sec. 45. Laws 2023, chapter 52, article 19, section 120, is amended to read:
276.4 	Sec. 120. EFFECTIVE DATE.
 276.5 	Sections 117 to and 119 are effective January 1, 2024. Section 118 is effective January 
276.6 	1, 2024, and applies to cases filed before, on, or after that date.

276.7 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2024.

276.8 	Sec. 46. SINGLE-EGRESS STAIRWAY APARTMENT BUILDING REPORT.
 276.9 	The commissioner of labor and industry must evaluate conditions under which apartment 
276.10 	buildings with a single means of egress above three stories up to 75 feet would achieve life 
276.11 	safety outcomes equal to or superior to currently adopted codes. The commissioner must 
276.12 	use research techniques that include smoke modeling, egress modeling, an analysis of fire 
276.13 	loss history in jurisdictions that have already adopted similar provisions, and interviews 
276.14 	with fire services regarding fire suppression and rescue techniques in such buildings. The 
276.15 	commissioner shall consult with relevant stakeholders, including but not limited to the 
276.16 	Minnesota Fire Chiefs Association, Minnesota Professional Firefighters Association, Fire 
276.17 	Marshals Association of Minnesota, Association of Minnesota Building Officials, Housing 
276.18 	First Minnesota, Center for Building in North America, and faculty from the relevant 
276.19 	department of a university which grants degrees in fire protection engineering. In addition, 
276.20 	the commissioner must also contextualize the life safety outcomes from the single-egress 
276.21 	evaluation to life safety outcomes in other types of housing. The commissioner may contract 
276.22 	with external experts or an independent third party to develop the report and perform other 
276.23 	functions required of the commissioner under this section. The report must include 
276.24 	recommendations for code updates for the single-egress buildings evaluated in this section. 
276.25 	By December 31, 2025, the commissioner must report on the findings to the chairs and 
276.26 	ranking minority members of the legislative committees with jurisdiction over housing and 
276.27 	state building codes.

276.28 	Sec. 47. LOCALLY FUNDED HOUSING EXPENDITURE REPORT.
 276.29 	By February 15, 2027, the commissioner of the Minnesota Housing Finance Agency 
276.30 	shall report to the chairs and ranking minority members of the legislative policy and finance 
276.31 	committees with jurisdiction over housing and taxes, on the reports received on locally 
277.1 	funded housing expenditures as required under Minnesota Statutes, sections 477A.35, 
277.2 	subdivision 5a, and 477A.36, subdivision 5a.

277.3 	Sec. 48. WORKING GROUP ON COMMON INTEREST COMMUNITIES AND 
277.4 	HOMEOWNERS ASSOCIATIONS.
 277.5 		Subdivision 1.Creation; duties. (a) A working group is created to study the prevalence 
277.6 	and impact of common interest communities (CICs) and homeowners associations (HOAs) 
277.7 	in Minnesota and how the existing laws regulating CICs and HOAs help homeowners and 
277.8 	tenants access safe and affordable housing. The working group shall study:
277.9 	(1) how many CICs and HOAs exist, how many people may reside in those housing 
277.10 	units, and where they are located in the state;
277.11 	(2) the governing documents commonly used by CICs and HOAs and whether the 
277.12 	governing documents or common practices create barriers for participation by homeowners 
277.13 	in the board of directors for CICs or HOAs;
277.14 	(3) the fees and costs commonly associated with CICs and HOAs and how those fees 
277.15 	have increased, including the cost of outside management, accounting, and attorney fees 
277.16 	that are assessed to owners and residents;
277.17 	(4) whether there should be uniform, statutory standards regarding fees, fines, and costs 
277.18 	assessed to residents;
277.19 	(5) how the organization and management of CICs and HOAs, including boards and 
277.20 	management companies, impact the affordability of CICs and HOAs;
277.21 	(6) the impact of CICs and HOAs on the housing market and housing costs;
277.22 	(7) the racial disparity in homeownership as it relates to CICs and HOAs;
277.23 	(8) the accessibility and affordability of CICs and HOAs for Minnesotans with disabilities;
277.24 	(9) how other states regulate CICs and HOAs and best practices related to board 
277.25 	transparency, dispute resolution, and foreclosures; and
277.26 	(10) how the current laws governing CICs and HOAs may be consolidated and reformed 
277.27 	for clarity and to improve the experience of homeowners and residents in CICs and HOAs.
277.28 	(b) The focus and duties of the working group shall be to recommend legislative reforms 
277.29 	or other methods to regulate CICs and HOAs, including the consolidation or recodification 
277.30 	of existing chapters regulating CICs and HOAs.
277.31 		Subd. 2.Membership. (a) The working group shall consist of the following:
278.1 	(1) two members of the house of representatives, one appointed by the speaker of the 
278.2 	house and one appointed by the minority leader;
278.3 	(2) two members of the senate, one appointed by the senate majority leader and one 
278.4 	appointed by the senate minority leader;
278.5 	(3) one member from the Minnesota Homeownership Center;
278.6 	(4) one member from the Community Associations Institute;
278.7 	(5) one member from a business association that supports, educates, or provides services 
278.8 	to CICs and HOAs in Minnesota designated by the commissioner of commerce;
278.9 	(6) one member from a legal aid association familiar with housing laws and representing 
278.10 	low-income clients designated by Mid-Minnesota Legal Assistance;
278.11 	(7) one member from the Minnesota Association of Realtors;
278.12 	(8) one member who is an attorney who regularly works advising homeowners or 
278.13 	residents in CICs and HOAs and is familiar with the state foreclosure laws designed by the 
278.14 	State Bar Association;
278.15 	(9) one member who is an attorney who regularly works advising CIC and HOA boards 
278.16 	designated by the State Bar Association;
278.17 	(10) one member from a metropolitan area government who is familiar with issues 
278.18 	homeowners and tenants face while living in CICs and HOAs in the metropolitan area 
278.19 	designated by League of Minnesota Cities;
278.20 	(11) the commissioner of the Minnesota Housing Finance Agency or the commissioner's 
278.21 	designee;
278.22 	(12) one member from the attorney general's office designated by the attorney general;
278.23 	(13) one member designated by the North Country Cooperative Foundation and one 
278.24 	member to be designated by the Senior Housing Cooperative Council;
278.25 	(14) four members who are current or recent owners of a residence that is part of a CIC 
278.26 	or HOA designated by the Housing Justice Center.
278.27 	(b) Appointments and designations for members of the working group shall be made by 
278.28 	July 1, 2024, and information about the appointed and designated members shall be provided 
278.29 	by the commissioner of housing finance to the chairs and ranking minority members of the 
278.30 	legislative committees with jurisdiction over housing no later than July 1, 2024.
279.1 		Subd. 3.Facilitation; organization; meetings. (a) The Legislative Coordinating 
279.2 	Commission shall facilitate the working group, provide administrative assistance, and 
279.3 	convene the first meeting by July 15, 2024. Members of the working group may receive 
279.4 	compensation and reimbursement for expenses as authorized by Minnesota Statutes, section 
279.5 	15.059, subdivision 3.
279.6 	(b) The working group must meet at regular intervals as often as necessary to accomplish 
279.7 	the goals enumerated under subdivision 1. Meetings of the working group are subject to the 
279.8 	Minnesota Open Meeting Law under Minnesota Statutes, chapter 13D.
279.9 		Subd. 4.External consultation. The working group shall consult with other individuals 
279.10 	and organizations that have expertise and experience that may assist the working group in 
279.11 	fulfilling its responsibilities, including entities engaging in additional external stakeholder 
279.12 	input from those with experience living in CICs and HOAs as well as working with the 
279.13 	board of directors for CICs and HOAs.
279.14 		Subd. 5.Report required. The working group shall submit a final report by February 
279.15 	1, 2025, to the chairs and ranking minority members of the legislative committees with 
279.16 	jurisdiction over housing finance and policy, commerce, and real property. The report shall 
279.17 	include recommendations and draft legislation based on the duties and focus for the working 
279.18 	group provided in subdivision 1.
279.19 		Subd. 6.Expiration. The working group expires upon submission of the final report in 
279.20 	subdivision 5, or February 28, 2025, whichever is later.

279.21 	EFFECTIVE DATE. This section is effective the day following final enactment and 
279.22 	expires March 1, 2025.

279.23 	Sec. 49. TASK FORCE ON LONG-TERM SUSTAINABILITY OF AFFORDABLE 
279.24 	HOUSING.
 279.25 		Subdivision 1.Establishment. A task force is established to evaluate issues and provide 
279.26 	recommendations relating to affordable housing sustainability, including displacement of 
279.27 	tenants, preservation of housing previously developed with public financing, and long-term 
279.28 	sustainability of new housing developments.
279.29 		Subd. 2.Membership. (a) The task force consists of the following members:
279.30 	(1) three members appointed by the commissioner of housing;
279.31 	(2) one member with expertise in insurance regulation appointed by the commissioner 
279.32 	of commerce;
280.1 	(3) one member from a county that participates in the Interagency Stabilization Group 
280.2 	appointed by the Association of Minnesota Counties;
280.3 	(4) one member from a greater Minnesota county appointed by the Association of 
280.4 	Minnesota Counties;
280.5 	(5) one member with experience developing affordable rental housing appointed by the 
280.6 	Metropolitan Consortium of Community Developers;
280.7 	(6) one member with experience in operating affordable rental housing appointed by 
280.8 	the Metropolitan Consortium of Community Developers;
280.9 	(7) one member of the Minnesota Housing Partnership who has experience developing 
280.10 	affordable rental housing;
280.11 	(8) one member of the Minnesota Housing Partnership who has experience operating 
280.12 	affordable rental housing;
280.13 	(9) one member of the Minnesota Housing Partnership who has experience developing 
280.14 	and operating affordable rental housing in greater Minnesota;
280.15 	(10) one member with experience developing or operating for-profit affordable housing 
280.16 	appointed by the Minnesota Multi-Housing Association;
280.17 	(11) one member appointed by the Family Housing Fund;
280.18 	(12) one member appointed by the Greater Minnesota Housing Fund;
280.19 	(13) one member with experience in multifamily affordable housing lending appointed 
280.20 	by the Minnesota Bankers Association;
280.21 	(14) one member appointed by the Insurance Federation of Minnesota;
280.22 	(15) one member appointed by the Twin Cities United Way;
280.23 	(16) one member appointed by the speaker of the house;
280.24 	(17) one member appointed by the house minority leader;
280.25 	(18) one member appointed by the senate majority leader; and
280.26 	(19) one member appointed by the senate minority leader.
280.27 	(b) The appointing authorities must make the appointments by June 15, 2024.
280.28 		Subd. 3.Duties. (a) The task force must assess underlying financial challenges to develop, 
280.29 	operate, and preserve safe, affordable, and dignified housing, including:
281.1 	(1) factors that are leading to increasing operating costs for affordable housing providers, 
281.2 	including insurance availability and rates, labor costs, and security costs;
281.3 	(2) factors that are leading to declining revenues for affordable housing providers, such 
281.4 	as loss of rent and vacancy issues; and
281.5 	(3) the potential impact of the loss of housing units under current conditions, including 
281.6 	preservation needs of federally rent-assisted properties and tax credit developments with 
281.7 	expiring contracts.
281.8 	(b) The task force must evaluate current financing and administrative tools to develop, 
281.9 	operate, and preserve safe and affordable housing, including:
281.10 	(1) public and private financing programs, and the availability of funding as it relates 
281.11 	to overall needs; and
281.12 	(2) administrative tools including underwriting standards used by public and private 
281.13 	housing funders and investors.
281.14 	(c) The task force must evaluate financial or asset management practices of affordable 
281.15 	housing providers and support for asset management functions by funder organizations.
281.16 	(d) The task force must recommend potential solutions to develop and preserve safe and 
281.17 	affordable housing, including:
281.18 	(1) additional funding for existing programs and administrative tools;
281.19 	(2) any new financial tools necessary to meet current financial challenges that cannot 
281.20 	be met by existing state and local government or private program and administrative tools, 
281.21 	including new uses, modified implementation, or other improvements to existing programs; 
281.22 	and
281.23 	(3) best practices for changes to financial or asset management practices of affordable 
281.24 	housing providers and funders.
281.25 	(e) The task force may address other topics as identified by task force members during 
281.26 	the course of its work.
281.27 	(f) The task force shall consult with other organizations that have expertise in affordable 
281.28 	rental housing, including entities engaging in additional external stakeholder input from 
281.29 	those with lived experience and administrators of emergency assistance, including 
281.30 	Minnesota's Tribal nations.
282.1 		Subd. 4.Meetings. (a) The Legislative Coordinating Commission must ensure the first 
282.2 	meeting of the task force convenes no later than July 1, 2024, and must provide accessible 
282.3 	physical or virtual meeting space as necessary for the task force to conduct its work.
282.4 	(b) At its first meeting, the task force must elect a chair or cochairs by a majority vote 
282.5 	of those members present and may elect a vice-chair as necessary.
282.6 	(c) The task force must establish a schedule for meetings and meet as necessary to 
282.7 	accomplish the duties under subdivision 3.
282.8 	(d) The task force is subject to the Minnesota Open Meeting Law under Minnesota 
282.9 	Statutes, chapter 13D.
282.10 		Subd. 5.Report required. By February 1, 2025, the task force must submit a report to 
282.11 	the commissioner of the Minnesota Housing Finance Agency, the Interagency Stabilization 
282.12 	Group, and the chairs and ranking minority members of the legislative committees having 
282.13 	jurisdiction over housing finance and policy. At a minimum, the report must:
282.14 	(1) summarize the activities of the task force;
282.15 	(2) provide findings and recommendations adopted by the task force; and
282.16 	(3) include any draft legislation to implement the recommendations.
282.17 		Subd. 6.Expiration. The task force expires upon submission of the final 
282.18 	recommendations required under subdivision 5.

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

282.20 	Sec. 50. REPORT ON SECTION 42 SENIOR RENTAL HOUSING.
 282.21 	(a) The commissioner of the Minnesota Housing Finance Agency must gather data and 
282.22 	produce a report on senior renters residing in properties financed by tax credits under Section 
282.23 	42 of the Internal Revenue Code, and Section 42 properties. To the extent practicable, the 
282.24 	commissioner must gather data from the past ten years and report on the:
282.25 	(1) estimated number of Section 42 properties in which a majority of units are occupied 
282.26 	by senior households;
282.27 	(2) estimated number of senior households living in Section 42 properties and the 
282.28 	estimated number of senior households living in Section 42 properties that are cost-burdened;
282.29 	(3) amount of public resources allocated or awarded to construct Section 42 properties 
282.30 	in which a majority of units are occupied by senior households;
283.1 	(4) annual percentage changes in area median income, Social Security cost-of-living 
283.2 	adjustments, and inflation; and
283.3 	(5) number of times rents were increased to the maximum allowable under HUD 
283.4 	guidelines in Section 42 properties in which a majority of units occupied by senior 
283.5 	households.
283.6 	(b) By January 15, 2025, the commissioner must report on the data gathered to the chairs 
283.7 	and ranking minority members of the legislative committees with jurisdiction over housing 
283.8 	finance. The commissioner must use existing financial resources to review and complete 
283.9 	this report.

283.10 	Sec. 51. COMPREHENSIVE PLANS; METROPOLITAN AREA CITIES OF THE 
283.11 	FIRST CLASS.
 283.12 	Comprehensive plans adopted by cities of the first class in the metropolitan area, as 
283.13 	defined under Minnesota Statutes, section 473.121, subdivision 2, and authorized by the 
283.14 	Metropolitan Council for the most recent decennial review under Minnesota Statutes, section 
283.15 	473.864, shall not constitute conduct that causes or is likely to cause pollution, impairment, 
283.16 	or destruction as defined under Minnesota Statutes, section 116B.02, subdivision 5.

283.17 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
283.18 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
283.19 	Scott, and Washington.

283.20 	Sec. 52. CONTINGENT FEE PAYMENTS.
 283.21 	Notwithstanding any law to the contrary, an attorney or financial adviser participating 
283.22 	in conduit financing through a local unit of government may be paid on a contingent fee 
283.23 	basis.

283.24 	EFFECTIVE DATE. This section is effective the day following final enactment and 
283.25 	expires June 1, 2025.

283.26 	Sec. 53. REVISOR INSTRUCTION.
 283.27 	The revisor of statutes shall renumber Minnesota Statutes, section 462A.37, subdivision 
283.28 	2i, as Minnesota Statutes, section 462A.37, subdivision 3a. The revisor shall also make 
283.29 	necessary cross-reference changes in Minnesota Statutes.

284.1 	Sec. 54. REPEALER.
 284.2 	(a) Minnesota Statutes 2022, section 462A.209, subdivision 8, is repealed.
284.3 	(b) Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 1, is repealed.

284.4 	EFFECTIVE DATE. Paragraph (a) is effective the day following final enactment. 
284.5 	Paragraph (b) is effective beginning with aids payable in 2024.

284.6 	ARTICLE 16
284.7 	EXPEDITING RENTAL ASSISTANCE

284.8 	Section 1. [462A.2096] ANNUAL PROJECTION OF EMERGENCY RENTAL 
284.9 	ASSISTANCE NEEDS.
284.10 	The agency must develop a projection of emergency rental assistance needs in 
284.11 	consultation with the commissioner of human services and representatives from county and 
284.12 	Tribal housing administrators and housing nonprofit agencies. The projection must identify 
284.13 	the amount of funding required to meet all emergency rental assistance needs, including 
284.14 	the family homelessness prevention and assistance program, the emergency assistance 
284.15 	program, and emergency general assistance. By January 15 each year, the commissioner 
284.16 	must submit a report on the projected need for emergency rental assistance to the chairs and 
284.17 	ranking minority members of the legislative committees having jurisdiction over housing 
284.18 	and human services finance and policy.

284.19 	Sec. 2. EXPEDITING RENTAL ASSISTANCE; IMPLEMENTATION.
 284.20 	(a) For the purposes of this section, the following terms have the meanings given:
284.21 	(1) "culturally responsive" means agencies, programs, and providers of services respond 
284.22 	respectfully and effectively to people of all cultures, languages, classes, races, ethnic 
284.23 	backgrounds, disabilities, religions, genders, sexual orientations, and other identities in a 
284.24 	manner that recognizes, values, and affirms differences and eliminates barriers to access; 
284.25 	and
284.26 	(2) "trauma-informed" means to recognize that many people have experienced trauma 
284.27 	in their lifetime and that programs must be designed to respond to people with respect and 
284.28 	accommodate the needs of people who have or are currently experiencing trauma.
284.29 	(b) In implementing the sections in this article, the commissioner of the Minnesota 
284.30 	Housing Finance Agency must ensure the work is culturally responsive and trauma-informed.

285.1 	Sec. 3. DATA COLLECTION TO MEASURE TIMELINESS OF RENTAL 
285.2 	ASSISTANCE.
 285.3 	The commissioner of the Minnesota Housing Finance Agency must work with the 
285.4 	commissioner of human services to develop criteria for measuring the timeliness of 
285.5 	processing applications for rental assistance. The commissioner of the Minnesota Housing 
285.6 	Finance Agency must collect data to monitor application speeds of the family homelessness 
285.7 	prevention and assistance program and use the collected data to inform improvements to 
285.8 	application processing systems. By January 15, 2027, the commissioner of the Minnesota 
285.9 	Housing Finance Agency must submit a report to the chairs and ranking minority members 
285.10 	of the legislative committees having jurisdiction over housing finance and policy. The report 
285.11 	must include analysis of the data collected and whether goals have been met to (1) process 
285.12 	an emergency rental assistance application within two weeks of the receipt of a complete 
285.13 	application, and (2) if approved, make payment to a landlord within 30 days of the receipt 
285.14 	of a complete application.

285.15 	Sec. 4. E-SIGNATURE OPTIONS FOR RENTAL ASSISTANCE.
 285.16 	The commissioner of the Minnesota Housing Finance Agency, working with the 
285.17 	commissioner of human services, shall develop uniform e-signature options to be used in 
285.18 	applications for the family homelessness prevention and assistance program. No later than 
285.19 	June 30, 2026, the commissioner shall require administrators of the family homelessness 
285.20 	prevention and assistance program to incorporate and implement the developed e-signature 
285.21 	options. The commissioner must notify the chairs and ranking minority members of the 
285.22 	legislative committees with jurisdiction over housing of the date when the e-signature options 
285.23 	are implemented. A copy of this notification must also be filed with the Legislative Reference 
285.24 	Library in compliance with Minnesota Statutes, section 3.195.

285.25 	Sec. 5. VERIFICATION PROCEDURES FOR RENTAL ASSISTANCE.
 285.26 	(a) The commissioner of the Minnesota Housing Finance Agency, working with program 
285.27 	administrators, must develop recommendations to simplify the process of verifying 
285.28 	information in applications for the family homelessness prevention and assistance program. 
285.29 	In developing recommendations, the commissioner must consider:
285.30 	(1) allowing self-attestation of emergencies, assets, and income;
285.31 	(2) allowing verbal authorization by applicants to allow emergency rental assistance 
285.32 	administrators to communicate with landlords and utility providers regarding applications 
285.33 	for assistance; and
286.1 	(3) allowing landlords to apply for emergency rental assistance on tenants' behalf.
286.2 	(b) The commissioner must:
286.3 	(1) prepare recommendations and submit them to the chairs and ranking minority 
286.4 	members of the legislative committees having jurisdiction over housing finance and policy 
286.5 	by January 1, 2025;
286.6 	(2) adopt any recommendations that have become law; and
286.7 	(3) provide technical assistance to counties, Tribes, and other emergency rental assistance 
286.8 	administrators to implement these recommendations.
286.9 	(c) By January 13, 2025, the commissioner must report to the chairs and ranking minority 
286.10 	members of the legislative committees with jurisdiction over housing detailing the proposed 
286.11 	recommendations required by this section. By July 7, 2025, the commissioner must report 
286.12 	to the chairs and ranking minority members of the legislative committees with jurisdiction 
286.13 	over housing detailing the recommendations adopted as required by this section.

286.14 	ARTICLE 17
286.15 	TRANSPORTATION NETWORK COMPANIES

286.16 	Section 1. Minnesota Statutes 2022, section 65B.472, is amended to read:
286.17 	65B.472 TRANSPORTATION NETWORK FINANCIAL RESPONSIBILITY.
286.18 		Subdivision 1.Definitions. (a) Unless a different meaning is expressly made applicable, 
286.19 	the terms defined in paragraphs (b) through (g) (p) have the meanings given them for the 
286.20 	purposes of this chapter section.
286.21 	(b) A "Digital network" means any online-enabled application, software, website, or 
286.22 	system offered or utilized by a transportation network company that enables the 
286.23 	prearrangement of rides with transportation network company drivers.
286.24 	(c) "Disability and income loss benefits" has the meaning given in section 65B.44, 
286.25 	subdivision 3, subject to the weekly maximum amount and with a maximum time period 
286.26 	of 130 weeks after the injury.
286.27 	(d) "P1," "P2," and "P3" have the meanings given in section 181C.01, subdivision 4.
286.28 	(e) "Funeral and burial expenses" has the meaning given in section 65B.44, subdivision 
286.29 	4.
287.1 	(f) "Medical expense benefits" has the meaning given in section 65B.44, subdivision 2, 
287.2 	except that payment for rehabilitative services is only required when the services are 
287.3 	medically necessary.
287.4 	(g) "Personal injury" means a physical injury or mental impairment arising out of a 
287.5 	physical injury in the course of a prearranged ride. A personal injury is only covered if the 
287.6 	injury occurs to a driver during P2 or P3, except as provided under subdivision 2, paragraph 
287.7 	(d). A personal injury claimant is subject to the requirements of section 65B.56.
287.8 	(c) A (h) "Personal vehicle" means a vehicle that is used by a transportation network 
287.9 	company TNC driver in connection with providing a prearranged ride and is:
287.10 	(1) owned, leased, or otherwise authorized for use by the transportation network company
287.11 	driver; and
287.12 	(2) not a taxicab, limousine, for-hire vehicle, or a private passenger vehicle driven by a 
287.13 	volunteer driver.
287.14 	(d) A (i) "Prearranged ride" means the provision of transportation by a driver to a rider, 
287.15 	beginning when a driver accepts a ride requested by a rider through a digital network 
287.16 	controlled by a transportation network company, continuing while the driver transports a 
287.17 	requesting rider, and ending when the last requesting rider departs from the personal vehicle. 
287.18 	A prearranged ride does not include transportation provided using a taxicab, limousine, or 
287.19 	other for-hire vehicle.
287.20 	(j) "Replacement services loss benefits" has the meaning given in section 65B.44, 
287.21 	subdivision 5, subject to the weekly maximum amount and with a maximum time period 
287.22 	of 130 weeks after the injury.
287.23 	(k) "Survivors economic loss benefits" has the meaning given in section 65B.44, 
287.24 	subdivision 6, subject to the weekly maximum amount and with a maximum time period 
287.25 	of 130 weeks after death.
287.26 	(l) "Survivors replacement services loss benefits" has the meaning given in section 
287.27 	65B.44, subdivision 7, subject to the weekly maximum amount and with a maximum time 
287.28 	period of 130 weeks after death.
287.29 	(e) A (m) "Transportation network company" or "TNC" means a corporation, partnership, 
287.30 	sole proprietorship, or other entity that is operating in Minnesota that uses a digital network 
287.31 	to connect transportation network company riders to transportation network company drivers 
287.32 	who provide prearranged rides.
288.1 	(f) A (n) "Transportation network company driver," "TNC driver," or "driver" means 
288.2 	an individual who:
288.3 	(1) receives connections to potential riders and related services from a transportation 
288.4 	network company in exchange for payment of a fee to the transportation network company; 
288.5 	and
288.6 	(2) uses a personal vehicle to provide a prearranged ride to riders upon connection 
288.7 	through a digital network controlled by a transportation network company in return for 
288.8 	compensation or payment of a fee.
288.9 	(g) A (o) "Transportation network company rider," "TNC rider," or "rider" means an 
288.10 	individual or persons who use a transportation network company's digital network to connect 
288.11 	with a transportation network driver who provides prearranged rides to the rider in the 
288.12 	driver's personal vehicle between points chosen by the rider.
288.13 	(h) A (p) "Volunteer driver" means an individual who transports persons or goods on 
288.14 	behalf of a nonprofit entity or governmental unit in a private passenger vehicle and receives 
288.15 	no compensation for services provided other than the reimbursement of actual expenses.
288.16 		Subd. 2.Maintenance of transportation network financial responsibility. (a) A 
288.17 	transportation network company driver or transportation network company on the driver's 
288.18 	behalf shall maintain primary automobile insurance that recognizes that the driver is a 
288.19 	transportation network company driver or otherwise uses a vehicle to transport passengers 
288.20 	for compensation and covers the driver: during P1, P2, and P3.
288.21 	(1) while the driver is logged on to the transportation network company's digital network; 
288.22 	or
288.23 	(2) while the driver is engaged in a prearranged ride.
288.24 	(b) During P1, the following automobile insurance requirements apply while a 
288.25 	participating transportation network company driver is logged on to the transportation 
288.26 	network company's digital network and is available to receive transportation requests but 
288.27 	is not engaged in a prearranged ride:
288.28 	(1) primary coverage insuring against loss resulting from liability imposed by law for 
288.29 	injury and property damage, including the requirements of section 65B.49, subdivision 3, 
288.30 	in the amount of not less than $50,000 because of death or bodily injury to one person in 
288.31 	any accident, $100,000 because of death or bodily injury to two or more persons in any 
288.32 	accident, and $30,000 for injury to or destruction of property of others in any one accident;
289.1 	(2) security for the payment of basic economic loss benefits where required by section 
289.2 	65B.44 pursuant to the priority requirements of section 65B.47. A transportation network 
289.3 	company and a transportation network company driver, during the period set forth in this 
289.4 	paragraph, are deemed to be in the business of transporting persons for purposes of section 
289.5 	65B.47, subdivision 1, and the insurance required under this subdivision shall be deemed 
289.6 	to cover the vehicle during the period set forth in this paragraph;
289.7 	(3) primary uninsured motorist coverage and primary underinsured motorist coverage 
289.8 	where required by section 65B.49, subdivisions 3a and 4a; and
289.9 	(4) the coverage requirements of this subdivision may be satisfied by any of the following:
289.10 	(i) automobile insurance maintained by the transportation network company driver;
289.11 	(ii) automobile insurance maintained by the transportation network company; or
289.12 	(iii) any combination of items (i) and (ii).
289.13 	(c) During P2 and P3, the following automobile insurance requirements apply while a 
289.14 	transportation network company driver is engaged in a prearranged ride:
289.15 	(1) primary coverage insuring against loss resulting from liability imposed by law for 
289.16 	injury and property damage, including the requirements of section 65B.49, in the amount 
289.17 	of not less than $1,500,000 for death, injury, or destruction of property of others;
289.18 	(2) security for the payment of basic economic loss benefits where required by section 
289.19 	65B.44 pursuant to the priority requirements of section 65B.47. A transportation network 
289.20 	company and a transportation network company driver, during the period set forth in this 
289.21 	paragraph, are deemed to be in the business of transporting persons for purposes of section 
289.22 	65B.47, subdivision 1, and the insurance required under this subdivision shall be deemed 
289.23 	to cover the vehicle during the period set forth in this paragraph;
289.24 	(3) primary uninsured motorist coverage and primary underinsured motorist coverage 
289.25 	where required by section 65B.49, subdivisions 3a and 4a; and
289.26 	(4) the coverage requirements of this subdivision may be satisfied by any of the following:
289.27 	(i) automobile insurance maintained by the transportation network company driver;
289.28 	(ii) automobile insurance maintained by the transportation network company; or
289.29 	(iii) any combination of items (i) and (ii).
289.30 	(d) During P2 and P3, a TNC must maintain insurance on behalf of, and at no cost to, 
289.31 	the driver that provides reimbursement for all loss suffered through personal injury arising 
290.1 	from the driver's work for the TNC that is not otherwise covered by the insurance required 
290.2 	under paragraphs (b) and (c). The TNC may purchase the insurance coverage using a portion 
290.3 	of the fare or fee paid by the rider or riders. A driver shall not be charged by the TNC or 
290.4 	have their compensation lowered because of the insurance. The insurance coverage must 
290.5 	be in the amount of not less than $1,000,000 per incident due to personal injury and include 
290.6 	the following types of coverage: medical expense benefits, disability and income loss 
290.7 	benefits, funeral and burial expenses, replacement services loss benefits, survivors economic 
290.8 	loss benefits, and survivors replacement services loss benefits. Insurance coverage under 
290.9 	this paragraph includes personal injury sustained while at the drop-off location immediately 
290.10 	following the conclusion of a prearranged ride.
290.11 	(e) Any insurer authorized to write accident and sickness insurance in this state  have 
290.12 	the power to issue the blanket accident and sickness policy described in paragraph (d).
290.13 	(f) A policy of blanket accident and sickness insurance as described in paragraph (d) 
290.14 	must include in substance the provisions required for individual policies that are applicable 
290.15 	to blanket accident and sickness insurance and the following provisions:
290.16 	(1) a provision that the policy and the application of the policyholder constitutes the 
290.17 	entire contract between the parties, and that, in the absence of fraud, all statements made 
290.18 	by the policyholder are deemed representations and not warranties, and that a statement 
290.19 	made for the purpose of affecting insurance does not avoid insurance or reduce benefits 
290.20 	unless the statement is contained in a written instrument signed by the policyholder, a copy 
290.21 	of which has been furnished to such policyholder; and
290.22 	(2) a provision that to the group or class originally insured  be added from time to time 
290.23 	all new persons eligible for coverage.
290.24 	(g) If an injury is covered by blanket accident and sickness insurance maintained by 
290.25 	more than one TNC, the insurer of the TNC against whom a claim is filed is entitled to 
290.26 	contribution for the pro rata share of coverage attributable to one or more other TNCs up 
290.27 	to the coverages and limits in paragraph (d).
290.28 	(h) Notwithstanding any law to the contrary, amounts paid or payable under the coverages 
290.29 	required by section 65B.49, subdivisions 3a and 4a, shall be reduced by the total amount 
290.30 	of benefits paid or payable under insurance provided pursuant to paragraph (d).
290.31 	(d) (i) If insurance maintained by the driver in paragraph (b) or (c) has lapsed or does 
290.32 	not provide the required coverage, insurance maintained by a transportation network company 
290.33 	shall provide the coverage required by this subdivision beginning with the first dollar of a 
290.34 	claim and have the duty to defend the claim.
291.1 	(e) (j) Coverage under an automobile insurance policy maintained by the transportation 
291.2 	network company shall not be dependent on a personal automobile insurer first denying a 
291.3 	claim nor shall a personal automobile insurance policy be required to first deny a claim.
291.4 	(f) (k) Insurance required by this subdivision must satisfy the requirements of chapter 
291.5 	60A.
291.6 	(g) (l) Insurance satisfying the requirements of this subdivision shall be deemed to satisfy 
291.7 	the financial responsibility requirements under the Minnesota No-Fault Automobile Insurance 
291.8 	Act, sections 65B.41 to 65B.71.
291.9 	(h) (m) A transportation network company driver shall carry proof of coverage satisfying 
291.10 	paragraphs (b) and (c) at all times during the driver's use of a vehicle in connection with a 
291.11 	transportation network company's digital network. In the event of an accident, a transportation 
291.12 	network company driver shall provide this insurance coverage information to the directly 
291.13 	interested parties, automobile insurers, and investigating police officers upon request pursuant 
291.14 	to section 65B.482, subdivision 1. Upon such request, a transportation network company 
291.15 	driver shall also disclose to directly interested parties, automobile insurers, and investigating 
291.16 	police officers whether the driver was logged on to the transportation network company's 
291.17 	digital network or on a prearranged ride at the time of an accident.
291.18 		Subd. 3.Disclosure to transportation network company drivers. The transportation 
291.19 	network company shall disclose in writing to transportation network company drivers the 
291.20 	following before they are allowed to accept a request for a prearranged ride on the 
291.21 	transportation network company's digital network:
291.22 	(1) the insurance coverage, including the types of coverage and the limits for each 
291.23 	coverage under subdivision 2, paragraphs (b), (c), and (d), that the transportation network 
291.24 	company provides while the transportation network company driver uses a personal vehicle 
291.25 	in connection with a transportation network company's digital network;
291.26 	(2) that the transportation network company driver's own automobile insurance policy 
291.27 	might not provide any coverage while the driver is logged on to the transportation network 
291.28 	company's digital network and is available to receive transportation requests or is engaged 
291.29 	in a prearranged ride depending on its terms; and
291.30 	(3) that using a vehicle with a lien against the vehicle to provide transportation network 
291.31 	services prearranged rides may violate the transportation network driver's contract with the 
291.32 	lienholder.
292.1 		Subd. 4.Automobile insurance provisions. (a) Insurers that write automobile insurance 
292.2 	in Minnesota may exclude any and all coverage afforded under the owner's insurance policy 
292.3 	for any loss or injury that occurs while a driver is logged on to a transportation network 
292.4 	company's digital network or while a driver provides a prearranged ride during P1, P2, and 
292.5 	P3. This right to exclude all coverage may apply to any coverage included in an automobile 
292.6 	insurance policy including, but not limited to:
292.7 	(1) liability coverage for bodily injury and property damage;
292.8 	(2) uninsured and underinsured motorist coverage;
292.9 	(3) basic economic loss benefits as defined under section 65B.44;
292.10 	(4) medical payments coverage;
292.11 	(5) comprehensive physical damage coverage; and
292.12 	(6) collision physical damage coverage.
292.13 	These exclusions apply notwithstanding any requirement under the Minnesota No-Fault 
292.14 	Automobile Insurance Act, sections 65B.41 to 65B.71. Nothing in this section implies or 
292.15 	requires that a personal automobile insurance policy provide coverage while the driver is 
292.16 	logged on to the transportation network company's digital network, while the driver is 
292.17 	engaged in a prearranged ride, or while the driver otherwise uses a vehicle to transport 
292.18 	passengers for compensation during P1, P2, or P3, or while the driver otherwise uses a 
292.19 	vehicle to transport passengers for compensation.
292.20 	Nothing in this section shall be deemed to preclude an insurer from providing coverage 
292.21 	for the transportation network company driver's vehicle, if it so chooses to do so by contract 
292.22 	or endorsement.
292.23 	(b) Automobile insurers that exclude coverage as permitted in paragraph (a) shall have 
292.24 	no duty to defend or indemnify any claim expressly excluded thereunder. Nothing in this 
292.25 	section shall be deemed to invalidate or limit an exclusion contained in a policy, including 
292.26 	any policy in use or approved for use in Minnesota prior to May 19, 2015, that excludes 
292.27 	coverage for vehicles used to carry persons or property for a charge or available for hire by 
292.28 	the public.
292.29 	(c) An automobile insurer that defends or indemnifies a claim against a driver that is 
292.30 	excluded under the terms of its policy as permitted in paragraph (a) shall have a right of 
292.31 	contribution against other insurers that provide automobile insurance to the same driver in 
292.32 	satisfaction of the coverage requirements of subdivision 2 at the time of loss.
293.1 	(d) In a claims coverage investigation, transportation network companies and any insurer 
293.2 	potentially providing coverage under subdivision 2 shall cooperate to facilitate the exchange 
293.3 	of relevant information with directly involved parties and any insurer of the transportation 
293.4 	network company driver if applicable, including the precise times that a transportation 
293.5 	network company driver logged on and off of the transportation network company's digital 
293.6 	network in the 12-hour period immediately preceding and in the 12-hour period immediately 
293.7 	following the accident and disclose to one another a clear description of the coverage, 
293.8 	exclusions, and limits provided under any automobile insurance maintained under subdivision 
293.9 	2.

293.10 	EFFECTIVE DATE. This section is effective January 1, 2025.

293.11 	Sec. 2. [181C.01] DEFINITIONS.
293.12 		Subdivision 1.Application. For purposes of this chapter, the terms defined in this section 
293.13 	have the meanings given.
293.14 		Subd. 2.Deactivation. "Deactivation" means a TNC blocking a driver's access to a 
293.15 	digital network, suspending a driver, or changing a driver's status from eligible to ineligible 
293.16 	to provide prearranged rides for a TNC for more than 24 hours, or more than 72 hours when 
293.17 	the TNC must investigate a claim against a driver. Deactivation does not include a driver's 
293.18 	loss of access to the digital network that is contingent on a driver's compliance with licensing, 
293.19 	insurance, or regulatory requirements or that can be resolved through unilateral action by 
293.20 	the driver. For the purposes of this chapter, "prearranged ride" has the meaning given in 
293.21 	section 65B.472, subdivision 1.
293.22 		Subd. 3.Digital network. "Digital network" has the meaning given in section 65B.472, 
293.23 	subdivision 1.
293.24 		Subd. 4.Driver time periods. "Driver time periods" are divided into three exclusive 
293.25 	segments which have the following meanings:
293.26 	(1) "period 1" or "P1" means the time when a driver is logged into a TNC application, 
293.27 	but has not accepted a ride offer;
293.28 	(2) "period 2" or "P2" means the time when a driver is proceeding to pick up a rider 
293.29 	after choosing to accept a ride offer; and
293.30 	(3) "period 3" or "P3" means the time when a driver is transporting a rider from a pickup 
293.31 	location to a drop-off location.
294.1 		Subd. 5.Personal vehicle. "Personal vehicle" has the meaning given in section 65B.472, 
294.2 	subdivision 1.
294.3 		Subd. 6.Transportation network company. "Transportation network company" or 
294.4 	"TNC" has the meaning given in section 65B.472, subdivision 1.
294.5 		Subd. 7.Transportation network company driver. "Transportation network company 
294.6 	driver," "TNC driver," or "driver" has the meaning given in section 65B.472, subdivision 
294.7 	1.
294.8 		Subd. 8.Transportation network company rider. "Transportation network company 
294.9 	rider," "TNC rider," or "rider" has the meaning given in section 65B.472, subdivision 1.

294.10 	Sec. 3. [181C.02] NOTICE AND PAY TRANSPARENCY.
294.11 		Subdivision 1.Compensation notice. (a) Upon initial or subsequent account activation, 
294.12 	and annually each year while a driver continues to maintain an account with the TNC, a 
294.13 	TNC must provide written notice of compensation, or a compensation policy, if any, to each 
294.14 	driver containing the following information:
294.15 	(1) the right to legally required minimum compensation under section 181C.03;
294.16 	(2) the frequency and manner of a driver's pay;
294.17 	(3) the rights and remedies available to a driver for a TNC's failure to comply with legal 
294.18 	obligations related to minimum compensation; and
294.19 	(4) the driver's right to elect coverage of paid family and medical leave benefits, as 
294.20 	provided under chapter 268B.
294.21 	(b) Notice under this subdivision must be provided in written plain language and made 
294.22 	available in English, Amharic, Arabic, Hmong, Oromo, Somali, and Spanish. TNCs operating 
294.23 	in Minnesota must consider updating the languages in which they offer the notice each year.
294.24 	(c) The TNC must provide notice to a driver in writing or electronically of any changes 
294.25 	to the driver's compensation policy at least 48 hours before the date the changes take effect.
294.26 		Subd. 2.Assignment notice. When a TNC alerts a driver of a possible assignment to 
294.27 	transport a rider, the ride offer must be available for sufficient time for the driver to review, 
294.28 	and the TNC must indicate:
294.29 	(1) the estimated travel time and number of miles from the driver's current location to 
294.30 	the pickup location for P2;
294.31 	(2) the estimated travel time and number of miles for the trip for P3; and
295.1 	(3) the estimated total compensation, before any gratuity.
295.2 		Subd. 3.Daily trip receipt. Within 24 hours of each trip completion, the TNC must 
295.3 	transmit a detailed electronic receipt to the driver containing the following information for 
295.4 	each unique trip or portion of a unique trip:
295.5 	(1) the date, pickup, and drop-off locations. In describing the pickup and drop-off 
295.6 	locations, the TNC shall describe the location by indicating the specific block in which the 
295.7 	pick-up and drop-off occurred;
295.8 	(2) the time and total mileage traveled from pick up to drop off of a rider or riders for 
295.9 	P3;
295.10 	(3) the time and total mileage traveled from acceptance of the assignment to completion 
295.11 	for P2 and P3;
295.12 	(4) total fare or fee paid by the rider or riders; and
295.13 	(5) total compensation to the driver, specifying:
295.14 	(i) any applicable rate or rates of pay, any applicable price multiplier, or variable pricing 
295.15 	policy in effect;
295.16 	(ii) any gratuity; and
295.17 	(iii) an itemized list of all tolls, fees, or other pass-throughs from the rider charged to 
295.18 	the driver.
295.19 		Subd. 4.Weekly summary. Each week, a TNC must transmit a weekly summary to a 
295.20 	driver in writing or electronically containing the following information for the preceding 
295.21 	calendar week:
295.22 	(1) total time the driver logged into the TNC application;
295.23 	(2) total time and mileage for P2 and P3 segments;
295.24 	(3) total fares or fees paid by riders; and
295.25 	(4) total compensation to the driver, including any gratuities.
295.26 		Subd. 5.Record keeping. TNCs must maintain the trip receipts and weekly summaries 
295.27 	required under this section for at least three years.

295.28 	EFFECTIVE DATE. This section is effective December 1, 2024.

296.1 	Sec. 4. [181C.03] MINIMUM COMPENSATION.
296.2 	(a) Minimum compensation of a TNC driver under this paragraph must be adjusted 
296.3 	annually as provided under paragraph (f), and must be paid in a per minute, per mile format, 
296.4 	as follows:
296.5 	(1) $1.28 per mile and $0.31 per minute for any transportation of a rider by a driver;
296.6 	(2) if applicable, an additional $0.91 per mile for any transportation of a rider by a driver 
296.7 	in a vehicle that is subject to the requirements in sections 299A.11 to 299A.17, regardless 
296.8 	of whether a wheelchair securement device is used;
296.9 	(3) if a trip request is canceled by a rider or a TNC after the driver has already departed 
296.10 	to pick up a rider, 80 percent of any cancellation fee paid by the rider; and
296.11 	(4) at minimum, compensation of $5.00 for any transportation of a rider by a driver.
296.12 	(b) A TNC must pay a driver the minimum compensation required under this section 
296.13 	over a reasonable earnings period not to exceed 14 calendar days. The minimum 
296.14 	compensation required under this section guarantees a driver a certain level of compensation 
296.15 	in an earnings period that cannot be reduced. Nothing in this section prevents a driver from 
296.16 	earning, or a TNC from paying, a higher level of compensation.
296.17 	(c) Any gratuities received by a driver from a rider or riders are the property of the driver 
296.18 	and are not included as part of the minimum compensation required by this section. A TNC 
296.19 	must pay the applicable driver all gratuities received by the driver in an earnings period no 
296.20 	later than the driver's next scheduled payment.
296.21 	(d) For each earnings period, a TNC must compare a driver's earnings, excluding 
296.22 	gratuities, against the required minimum compensation for that driver during the earnings 
296.23 	period. If the driver's earnings, excluding gratuities, in the earnings period are less than the 
296.24 	required minimum compensation for that earnings period, the TNC must include an additional 
296.25 	sum accounting for the difference in the driver's earnings and the minimum compensation 
296.26 	no later than during the next earnings period.
296.27 	(e) A TNC that uses software or collection technology to collect fees or fares must pay 
296.28 	a driver the compensation earned by the driver, regardless of whether the fees or fares are 
296.29 	actually collected.
296.30 	(f) Beginning January 1, 2027, and each January 1 thereafter, the minimum compensation 
296.31 	required under paragraph (a) must be adjusted annually by the same process as the statewide 
296.32 	minimum wage under section 177.24, subdivision 1.

297.1 	EFFECTIVE DATE. This section is effective December 1, 2024.

297.2 	Sec. 5. [181C.04] DEACTIVATION.
297.3 		Subdivision 1.Deactivation policy; requirements. (a) A TNC must maintain a written 
297.4 	plain-language deactivation policy that provides the policies and procedures for deactivation. 
297.5 	The TNC must make the deactivation policy available online, through the TNC's digital 
297.6 	platform. Updates or changes to the policy must be provided to drivers at least 48 hours 
297.7 	before they go into effect.
297.8 	(b) The deactivation policy must be provided in English, Amharic, Arabic, Hmong, 
297.9 	Oromo, Somali, and Spanish. TNCs operating in Minnesota must consider updating the 
297.10 	languages in which they offer the deactivation policy each year.
297.11 	(c) The deactivation policy must:
297.12 	(1) state that the deactivation policy is enforceable as a term of the TNC's contract with 
297.13 	a driver;
297.14 	(2) provide drivers with a reasonable understanding of the circumstances that constitute 
297.15 	a violation that may warrant deactivation under the deactivation policy and indicate the 
297.16 	consequences known, including the specific number of days or range of days for a 
297.17 	deactivation if applicable;
297.18 	(3) describe fair and reasonable procedures for notifying a driver of a deactivation and 
297.19 	the reason for the deactivation;
297.20 	(4) describe fair, objective, and reasonable procedures and eligibility criteria for the 
297.21 	reconsideration of a deactivation decision and the process by which a driver may request a 
297.22 	deactivation appeal with the TNC, consistent with subdivision 5; and
297.23 	(5) be specific enough for a driver to understand what constitutes a violation of the policy 
297.24 	and how to avoid violating the policy.
297.25 	(d) Serious misconduct must be clearly defined in the TNC deactivation policy.
297.26 		Subd. 2.Prohibitions for deactivation. A TNC must not deactivate a driver for:
297.27 	(1) a violation not reasonably understood as part of a TNC's written deactivation policy;
297.28 	(2) a driver's ability to work a minimum number of hours;
297.29 	(3) a driver's acceptance or rejection of a ride, as long as the acceptance or rejection is 
297.30 	not for a discriminatory purpose;
298.1 	(4) a driver's good faith statement regarding compensation or working conditions made 
298.2 	publicly or privately; or
298.3 	(5) a driver asserting their legal rights under any local, state, or federal law.
298.4 		Subd. 3.Written notice and warning. (a) The TNC must provide notice at the time of 
298.5 	the deactivation or, for deactivations based on serious misconduct, notice within three days 
298.6 	of the deactivation. A written notice must include:
298.7 	(1) the reason for deactivation;
298.8 	(2) anticipated length of the deactivation, if known;
298.9 	(3) what day the deactivation started on;
298.10 	(4) an explanation of whether or not the deactivation can be reversed and clear steps for 
298.11 	the driver to take to reverse a deactivation;
298.12 	(5) instructions for a driver to challenge the deactivation and information on their rights 
298.13 	under the appeals process provided under subdivision 5; and
298.14 	(6) a notice that the driver has a right to assistance and information on how to contact a 
298.15 	driver advocacy group as provided in subdivision 4 to assist in the deactivation appeal 
298.16 	process, including the telephone number and website information for one or more driver 
298.17 	advocacy groups.
298.18 	(b) The TNC must provide a warning to a driver if the driver's behavior could result in 
298.19 	a future deactivation. A TNC does not need to provide a warning for behavior that constitutes 
298.20 	serious misconduct.
298.21 		Subd. 4.Driver advocacy organizations. (a) A TNC must contract with a driver's 
298.22 	advocacy organization to provide services to drivers under this section. A driver advocacy 
298.23 	group identified in the notice must be an independent, not-for-profit organization operating 
298.24 	without excessive influence from the TNC. The TNC must not have any control or influence 
298.25 	over the day-to-day operations of the advocacy organization or the organization's staff or 
298.26 	management or have control or influence over who receives assistance on specific cases or 
298.27 	how assistance is provided in a case. The organization must have been established and 
298.28 	operating in Minnesota continuously for at least two years and be capable of providing 
298.29 	culturally competent driver representation services, outreach, and education.
298.30 	(b) The driver advocacy groups must provide, at no cost to the drivers, assistance with:
298.31 	(1) deactivation appeals;
299.1 	(2) education and outreach to drivers regarding the drivers' rights and remedies available 
299.2 	to them under the law; and
299.3 	(3) other technical or legal assistance on issues related to providing services for the TNC 
299.4 	and riders.
299.5 		Subd. 5.Request for appeal. (a) The deactivation policy must provide the driver with 
299.6 	an opportunity to appeal the deactivation upon receipt of the notice and an opportunity to 
299.7 	provide information to support the request. An appeal process must provide the driver with 
299.8 	no less than 30 days from the date the notice was provided to the driver to appeal the 
299.9 	deactivation and allow the driver to have the support of an advocate or attorney.
299.10 	(b) Unless the TNC or the driver requests an additional 15 days, a TNC must review 
299.11 	and make a final decision on the appeal within 15 days from the receipt of the requested 
299.12 	appeal and information to support the request. A TNC may use a third party to assist with 
299.13 	appeals.
299.14 	(c) The TNC must consider any information presented by the driver under the appeal 
299.15 	process. For a deactivation to be upheld, there must be evidence under the totality of the 
299.16 	circumstances to find that it is more likely than not that a rule violation subjecting the driver 
299.17 	to deactivation has occurred.
299.18 	(d) This section does not apply to deactivations for economic reasons or during a public 
299.19 	state of emergency that are not targeted at a particular driver or drivers.
299.20 	(e) When an unintentional deactivation of an individual driver occurs due to a purely 
299.21 	technical issue and is not caused by any action or fault of the driver, the driver, upon request, 
299.22 	must be provided reasonable compensation for the period of time the driver was not able 
299.23 	to accept rides through the TNC capped at a maximum of 21 days. For the purposes of this 
299.24 	paragraph, "reasonable compensation" means compensation for each day the driver was 
299.25 	deactivated using the driver's daily average in earnings from the TNC for the 90 days prior 
299.26 	to the deactivation.
299.27 		Subd. 6.Prior deactivations. Consistent with the deactivation policy created under this 
299.28 	section, a driver who was deactivated after January 1, 2021, but before November 1, 2024, 
299.29 	and who has not been reinstated may request an appeal of the deactivation under this section, 
299.30 	if the driver provides notice of the appeal within 90 days of the date of enactment. The TNC 
299.31 	may take up to 90 days to issue a final decision.

299.32 	EFFECTIVE DATE. This section is effective December 1, 2024, and applies to 
299.33 	deactivations that occur on or after that date except as provided in subdivision 6.

300.1 	Sec. 6. [181C.05] ENFORCEMENT.
300.2 	(a) Except as provided under section 181C.06, the commissioner of labor and industry 
300.3 	has exclusive enforcement authority and may issue an order under section 177.27, subdivision 
300.4 	4, requiring a TNC to comply with sections 181C.02 and 181C.03 under section 177.27, 
300.5 	subdivision 4.
300.6 	(b) A provision in a contract between a TNC and a driver that violates this chapter is 
300.7 	void and unenforceable. Unless a valid arbitration agreement exists under section 181C.08, 
300.8 	a driver may bring an action in district court seeking injunctive relief and any applicable 
300.9 	remedies available under the contract if a provision of a contract between a TNC and a 
300.10 	driver violates this chapter.
300.11 	(c) A TNC must not retaliate against or discipline a driver for (1) raising a complaint 
300.12 	under this chapter, or (2) pursuing enactment or enforcement of this chapter. A TNC must 
300.13 	not give less favorable or more favorable rides to a driver for making public or private 
300.14 	comments supporting or opposing working conditions or compensation at a TNC.

300.15 	Sec. 7. [181C.06] DISCRIMINATION PROHIBITED.
300.16 	(a) A TNC must not discriminate against a TNC driver or a qualified applicant to become 
300.17 	a driver, due to race, national origin, color, creed, religion, sex, disability, sexual orientation, 
300.18 	marital status, or gender identity as provided under section 363A.11. Nothing in this section 
300.19 	prohibits providing a reasonable accommodation to a person with a disability, for religious 
300.20 	reasons, due to pregnancy, or to remedy previous discriminatory behavior.
300.21 	(b) A TNC driver injured by a violation of this section is entitled to the remedies under 
300.22 	sections 363A.28 to 363A.35.

300.23 	Sec. 8. [181C.07] COLLECTIVE BARGAINING; EMPLOYMENT STATUS.
300.24 	Notwithstanding any law to the contrary, nothing in this chapter prohibits collective 
300.25 	bargaining or shall be construed to determine whether a TNC driver is an employee.

300.26 	Sec. 9. [181C.08] ARBITRATION; REQUIREMENTS.
300.27 	(a) A TNC must provide a driver with the option to opt out of arbitration. Upon a driver's 
300.28 	written election to pursue remedies through arbitration, the driver must not seek remedies 
300.29 	through district court based on the same alleged violation.
300.30 	(b) The rights and remedies established in this chapter must be the governing law in an 
300.31 	arbitration between a driver operating in Minnesota and a TNC. The application of the rights 
301.1 	and remedies available under chapter 181C cannot be waived by a driver prior to or at the 
301.2 	initiation of an arbitration between a driver and a TNC. To the extent possible, a TNC shall 
301.3 	use Minnesota as the venue for arbitration with a Minnesota driver. If an arbitration cannot 
301.4 	take place in the state of Minnesota, the driver must be allowed to appear via phone or other 
301.5 	electronic means and apply the rights and remedies available under chapter 181C. Arbitrators 
301.6 	must be jointly selected by the TNC and the driver using the roster of qualified neutrals 
301.7 	provided by the Minnesota supreme court for alternative dispute resolution. Consistent with 
301.8 	the rules and guidelines provided by the American Arbitrators Association, if the parties 
301.9 	are unable to agree on an arbitrator through the joint selection process, the case manager 
301.10 	may administratively appoint the arbitrator or arbitrators.
301.11 	(c) Contracts that have already been executed must have an addendum provided to each 
301.12 	driver that includes a copy of this chapter and notice that a driver may elect to pursue the 
301.13 	remedies provided in this chapter.

301.14 	Sec. 10. [181C.09] REVOCATION OF LICENSE.
301.15 	A local unit of government may refuse to issue a license or may revoke a license and 
301.16 	right to operate issued to a TNC by the local unit of government for a TNC's failure to 
301.17 	comply with the requirements of this chapter. Notwithstanding section 13.39, the 
301.18 	commissioner of labor and industry may provide data collected related to a compliance 
301.19 	order issued under section 177.27, subdivision 4, to a local unit of government for purposes 
301.20 	of a revocation under this section.

301.21 	Sec. 11. [181C.10] STATEWIDE REGULATIONS.
301.22 	Notwithstanding any other provision of law and except as provided in section 181C.09 
301.23 	no local governmental unit of this state may enact or enforce any ordinance, local law, or 
301.24 	regulation that: (1) regulates any matter relating to transportation network companies or 
301.25 	transportation network company drivers addressed in section 65B.472 or chapter 181C; or 
301.26 	(2) requires the provision of data related to section 65B.472 or chapter 181C.

301.27 	EFFECTIVE DATE. This section is effective the day following final enactment. An 
301.28 	ordinance, local law, or regulation existing on that date that is prohibited under this section 
301.29 	is void and unenforceable as of that date.

301.30 	Sec. 12. APPROPRIATION.
 301.31 	$173,000 in fiscal year 2025 is appropriated from the general fund to the commissioner 
301.32 	of labor and industry for the purposes of enforcement, education, and outreach of Minnesota 
302.1 	Statutes, sections 181C.02 and 181C.03. Beginning in fiscal year 2026, the base amount is 
302.2 	$123,000 each fiscal year.

302.3 	ARTICLE 18
302.4 	TRANSFER CARE SPECIALISTS

302.5 	Section 1. Minnesota Statutes 2022, section 149A.01, subdivision 3, is amended to read:
302.6 		Subd. 3.Exceptions to licensure. (a) Except as otherwise provided in this chapter, 
302.7 	nothing in this chapter shall in any way interfere with the duties of:
302.8 	(1) an anatomical bequest program located within an accredited school of medicine or 
302.9 	an accredited college of mortuary science;
302.10 	(2) a person engaged in the performance of duties prescribed by law relating to the 
302.11 	conditions under which unclaimed dead human bodies are held subject to anatomical study;
302.12 	(3) authorized personnel from a licensed ambulance service in the performance of their 
302.13 	duties;
302.14 	(4) licensed medical personnel in the performance of their duties; or
302.15 	(5) the coroner or medical examiner in the performance of the duties of their offices.
302.16 	(b) This chapter does not apply to or interfere with the recognized customs or rites of 
302.17 	any culture or recognized religion in the ceremonial washing, dressing, casketing, and public 
302.18 	transportation of their dead, to the extent that all other provisions of this chapter are complied 
302.19 	with.
302.20 	(c) Noncompensated persons with the right to control the dead human body, under section 
302.21 	149A.80, subdivision 2, may remove a body from the place of death; transport the body; 
302.22 	prepare the body for disposition, except embalming; or arrange for final disposition of the 
302.23 	body, provided that all actions are in compliance with this chapter.
302.24 	(d) Persons serving internships pursuant to section 149A.20, subdivision 6, or; students 
302.25 	officially registered for a practicum or clinical through a program of mortuary science 
302.26 	accredited by the American Board of Funeral Service Education; or transfer care specialists 
302.27 	registered pursuant to section 149A.47 are not required to be licensed, provided that the 
302.28 	persons or, students, or transfer care specialists are registered with the commissioner and 
302.29 	act under the direct and exclusive supervision of a person holding a current license to practice 
302.30 	mortuary science in Minnesota.
303.1 	(e) Notwithstanding this subdivision, nothing in this section shall be construed to prohibit 
303.2 	an institution or entity from establishing, implementing, or enforcing a policy that permits 
303.3 	only persons licensed by the commissioner to remove or cause to be removed a dead body 
303.4 	or body part from the institution or entity.
303.5 	(f) An unlicensed person may arrange for and direct or supervise a memorial service if 
303.6 	that person or that person's employer does not have charge of the dead human body. An 
303.7 	unlicensed person may not take charge of the dead human body, unless that person has the 
303.8 	right to control the dead human body under section 149A.80, subdivision 2, or is that person's 
303.9 	noncompensated designee.

303.10 	Sec. 2. Minnesota Statutes 2022, section 149A.02, subdivision 13a, is amended to read:
303.11 		Subd. 13a.Direct supervision. "Direct supervision" means overseeing the performance 
303.12 	of an individual. For the purpose of a clinical, practicum, or internship, direct supervision 
303.13 	means that the supervisor is available to observe and correct, as needed, the performance 
303.14 	of the trainee. For the purpose of a transfer care specialist, direct supervision means that 
303.15 	the supervisor is available by being physically present or by telephone to advise and correct, 
303.16 	as needed, the performance of the transfer care specialist. The supervising mortician 
303.17 	supervisor is accountable for the actions of the clinical student, practicum student, or intern 
303.18 	throughout the course of the training. The supervising mortician is accountable for any 
303.19 	violations of law or rule, in the performance of their duties, by the clinical student, practicum 
303.20 	student, or intern, or transfer care specialist.

303.21 	Sec. 3. Minnesota Statutes 2022, section 149A.02, is amended by adding a subdivision to 
303.22 	read:
303.23 		Subd. 37d.Transfer care specialist. "Transfer care specialist" means an individual who 
303.24 	is registered with the commissioner in accordance with section 149A.47 and is authorized 
303.25 	to perform the removal of a dead human body from the place of death under the direct 
303.26 	supervision of a licensed mortician.

303.27 	Sec. 4. Minnesota Statutes 2022, section 149A.03, is amended to read:
303.28 	149A.03 DUTIES OF COMMISSIONER.
303.29 	The commissioner shall:
303.30 	(1) enforce all laws and adopt and enforce rules relating to the:
304.1 	(i) removal, preparation, transportation, arrangements for disposition, and final disposition 
304.2 	of dead human bodies;
304.3 	(ii) licensure, registration, and professional conduct of funeral directors, morticians, 
304.4 	interns, practicum students, and clinical students, and transfer care specialists;
304.5 	(iii) licensing and operation of a funeral establishment;
304.6 	(iv) licensing and operation of an alkaline hydrolysis facility; and
304.7 	(v) licensing and operation of a crematory;
304.8 	(2) provide copies of the requirements for licensure, registration, and permits to all 
304.9 	applicants;
304.10 	(3) administer examinations and issue licenses, registrations, and permits to qualified 
304.11 	persons and other legal entities;
304.12 	(4) maintain a record of the name and location of all current licensees and, interns, and 
304.13 	transfer care specialists;
304.14 	(5) perform periodic compliance reviews and premise inspections of licensees;
304.15 	(6) accept and investigate complaints relating to conduct governed by this chapter;
304.16 	(7) maintain a record of all current preneed arrangement trust accounts;
304.17 	(8) maintain a schedule of application, examination, permit, registration, and licensure 
304.18 	fees, initial and renewal, sufficient to cover all necessary operating expenses;
304.19 	(9) educate the public about the existence and content of the laws and rules for mortuary 
304.20 	science licensing and the removal, preparation, transportation, arrangements for disposition, 
304.21 	and final disposition of dead human bodies to enable consumers to file complaints against 
304.22 	licensees and others who may have violated those laws or rules;
304.23 	(10) evaluate the laws, rules, and procedures regulating the practice of mortuary science 
304.24 	in order to refine the standards for licensing and to improve the regulatory and enforcement 
304.25 	methods used; and
304.26 	(11) initiate proceedings to address and remedy deficiencies and inconsistencies in the 
304.27 	laws, rules, or procedures governing the practice of mortuary science and the removal, 
304.28 	preparation, transportation, arrangements for disposition, and final disposition of dead 
304.29 	human bodies.

305.1 	Sec. 5. Minnesota Statutes 2022, section 149A.09, is amended to read:
305.2 	149A.09 DENIAL; REFUSAL TO REISSUE; REVOCATION; SUSPENSION; 
305.3 	LIMITATION OF LICENSE, REGISTRATION, OR PERMIT.
305.4 		Subdivision 1.Denial; refusal to renew; revocation; and suspension. The regulatory 
305.5 	agency may deny, refuse to renew, revoke, or suspend any license, registration, or permit 
305.6 	applied for or issued pursuant to this chapter when the person subject to regulation under 
305.7 	this chapter:
305.8 	(1) does not meet or fails to maintain the minimum qualification for holding a license, 
305.9 	registration, or permit under this chapter;
305.10 	(2) submits false or misleading material information to the regulatory agency in 
305.11 	connection with a license, registration, or permit issued by the regulatory agency or the 
305.12 	application for a license, registration, or permit;
305.13 	(3) violates any law, rule, order, stipulation agreement, settlement, compliance agreement, 
305.14 	license, registration, or permit that regulates the removal, preparation, transportation, 
305.15 	arrangements for disposition, or final disposition of dead human bodies in Minnesota or 
305.16 	any other state in the United States;
305.17 	(4) is convicted of a crime, including a finding or verdict of guilt, an admission of guilt, 
305.18 	or a no contest plea in any court in Minnesota or any other jurisdiction in the United States. 
305.19 	"Conviction," as used in this subdivision, includes a conviction for an offense which, if 
305.20 	committed in this state, would be deemed a felony or gross misdemeanor without regard to 
305.21 	its designation elsewhere, or a criminal proceeding where a finding or verdict of guilty is 
305.22 	made or returned, but the adjudication of guilt is either withheld or not entered;
305.23 	(5) is convicted of a crime, including a finding or verdict of guilt, an admission of guilt, 
305.24 	or a no contest plea in any court in Minnesota or any other jurisdiction in the United States 
305.25 	that the regulatory agency determines is reasonably related to the removal, preparation, 
305.26 	transportation, arrangements for disposition or final disposition of dead human bodies, or 
305.27 	the practice of mortuary science;
305.28 	(6) is adjudicated as mentally incompetent, mentally ill, developmentally disabled, or 
305.29 	mentally ill and dangerous to the public;
305.30 	(7) has a conservator or guardian appointed;
305.31 	(8) fails to comply with an order issued by the regulatory agency or fails to pay an 
305.32 	administrative penalty imposed by the regulatory agency;
306.1 	(9) owes uncontested delinquent taxes in the amount of $500 or more to the Minnesota 
306.2 	Department of Revenue, or any other governmental agency authorized to collect taxes 
306.3 	anywhere in the United States;
306.4 	(10) is in arrears on any court ordered family or child support obligations; or
306.5 	(11) engages in any conduct that, in the determination of the regulatory agency, is 
306.6 	unprofessional as prescribed in section 149A.70, subdivision 7, or renders the person unfit 
306.7 	to practice mortuary science or to operate a funeral establishment or crematory.
306.8 		Subd. 2.Hearings related to refusal to renew, suspension, or revocation of license, 
306.9 	registration, or permit. If the regulatory agency proposes to deny renewal, suspend, or 
306.10 	revoke a license, registration, or permit issued under this chapter, the regulatory agency 
306.11 	must first notify, in writing, the person against whom the action is proposed to be taken and 
306.12 	provide an opportunity to request a hearing under the contested case provisions of sections 
306.13 	14.57 to 14.62. If the subject of the proposed action does not request a hearing by notifying 
306.14 	the regulatory agency, by mail, within 20 calendar days after the receipt of the notice of 
306.15 	proposed action, the regulatory agency may proceed with the action without a hearing and 
306.16 	the action will be the final order of the regulatory agency.
306.17 		Subd. 3.Review of final order. A judicial review of the final order issued by the 
306.18 	regulatory agency may be requested in the manner prescribed in sections 14.63 to 14.69. 
306.19 	Failure to request a hearing pursuant to subdivision 2 shall constitute a waiver of the right 
306.20 	to further agency or judicial review of the final order.
306.21 		Subd. 4.Limitations or qualifications placed on license, registration, or permit. The 
306.22 	regulatory agency may, where the facts support such action, place reasonable limitations 
306.23 	or qualifications on the right to practice mortuary science or, to operate a funeral 
306.24 	establishment or crematory, or to perform activities or actions permitted under this chapter.
306.25 		Subd. 5.Restoring license, registration, or permit. The regulatory agency may, where 
306.26 	there is sufficient reason, restore a license, registration, or permit that has been revoked, 
306.27 	reduce a period of suspension, or remove limitations or qualifications.

306.28 	Sec. 6. Minnesota Statutes 2022, section 149A.11, is amended to read:
306.29 	149A.11 PUBLICATION OF DISCIPLINARY ACTIONS.
306.30 	The regulatory agencies shall report all disciplinary measures or actions taken to the 
306.31 	commissioner. At least annually, the commissioner shall publish and make available to the 
306.32 	public a description of all disciplinary measures or actions taken by the regulatory agencies. 
306.33 	The publication shall include, for each disciplinary measure or action taken, the name and 
307.1 	business address of the licensee or, intern, or transfer care specialist; the nature of the 
307.2 	misconduct,; and the measure or action taken by the regulatory agency.

307.3 	Sec. 7. [149A.47] TRANSFER CARE SPECIALIST.
307.4 		Subdivision 1.General. A transfer care specialist may remove a dead human body from 
307.5 	the place of death under the direct supervision of a licensed mortician if the transfer care 
307.6 	specialist is registered with the commissioner in accordance with this section. A transfer 
307.7 	care specialist is not licensed to engage in the practice of mortuary science and shall not 
307.8 	engage in the practice of mortuary science except as provided in this section. A transfer 
307.9 	care specialist must be an employee of a licensed funeral establishment.
307.10 		Subd. 2.Registration. (a) To be eligible for registration as a transfer care specialist, an 
307.11 	applicant must submit to the commissioner:
307.12 	(1) a completed application on a form provided by the commissioner that includes at a 
307.13 	minimum:
307.14 	(i) the applicant's name, home address and telephone number, business name, business 
307.15 	address and telephone number, and email address; and
307.16 	(ii) the name, license number, business name, and business address and telephone number 
307.17 	of the supervising licensed mortician;
307.18 	(2) proof of completion of a training program that meets the requirements specified in 
307.19 	subdivision 4; and
307.20 	(3) the appropriate fee specified in section 149A.65.
307.21 	(b) All transfer care specialist registrations are valid for one calendar year, beginning 
307.22 	on January 1 and ending on December 31 regardless of the date of issuance. Fees shall not 
307.23 	be prorated.
307.24 		Subd. 3.Duties. (a) A transfer care specialist registered under this section is authorized 
307.25 	to perform the removal of a dead human body from the place of death in accordance with 
307.26 	this chapter to a licensed funeral establishment. A transfer care specialist must comply with 
307.27 	the universal precaution requirements in section 149A.91, subdivision 1, when handling a 
307.28 	dead human body.
307.29 	(b) A transfer care specialist must work under the direct supervision of a licensed 
307.30 	mortician. The supervising mortician is responsible for the work performed by the transfer 
307.31 	care specialist. A licensed mortician may supervise up to four transfer care specialists at 
307.32 	any one time.
308.1 		Subd. 4.Training program and continuing education. (a) Each transfer care specialist 
308.2 	must complete a training program prior to initial registration. A training program must be 
308.3 	at least seven hours long and must cover, at a minimum, the following:
308.4 	(1) ethical care and transportation procedures for a deceased person;
308.5 	(2) health and safety concerns to the public and the individual performing the transfer 
308.6 	of the deceased person, and the use of universal precautions and other reasonable precautions 
308.7 	to minimize the risk for transmitting communicable diseases; and
308.8 	(3) all relevant state and federal laws and regulations related to the transfer and 
308.9 	transportation of deceased persons.
308.10 	(b) A transfer care specialist must complete three hours of continuing education annually 
308.11 	on content described in paragraph (a), clauses (1) to (3), and submit evidence of completion 
308.12 	with the individual's registration renewal.
308.13 		Subd. 5.Renewal. (a) A registration issued under this section expires on December 31 
308.14 	of the calendar year in which the registration was issued and must be renewed to remain 
308.15 	valid.
308.16 	(b) To renew a registration, a transfer care specialist must submit to the commissioner 
308.17 	a completed renewal application as provided by the commissioner and the appropriate fee 
308.18 	specified in section 149A.65. The renewal application must include proof of completion of 
308.19 	the continuing education requirements in subdivision 4.

308.20 	Sec. 8. Minnesota Statutes 2022, section 149A.60, is amended to read:
308.21 	149A.60 PROHIBITED CONDUCT.
308.22 	The regulatory agency may impose disciplinary measures or take disciplinary action 
308.23 	against a person whose conduct is subject to regulation under this chapter for failure to 
308.24 	comply with any provision of this chapter or laws, rules, orders, stipulation agreements, 
308.25 	settlements, compliance agreements, licenses, registrations, and permits adopted, or issued 
308.26 	for the regulation of the removal, preparation, transportation, arrangements for disposition 
308.27 	or final disposition of dead human bodies, or for the regulation of the practice of mortuary 
308.28 	science.

308.29 	Sec. 9. Minnesota Statutes 2022, section 149A.61, subdivision 4, is amended to read:
308.30 		Subd. 4.Licensees and, interns, and transfer care specialists. A licensee or, intern, 
308.31 	or transfer care specialist regulated under this chapter may report to the commissioner any 
309.1 	conduct that the licensee or, intern, or transfer care specialist has personal knowledge of, 
309.2 	and reasonably believes constitutes grounds for, disciplinary action under this chapter.

309.3 	Sec. 10. Minnesota Statutes 2022, section 149A.61, subdivision 5, is amended to read:
309.4 		Subd. 5.Courts. The court administrator of district court or any court of competent 
309.5 	jurisdiction shall report to the commissioner any judgment or other determination of the 
309.6 	court that adjudges or includes a finding that a licensee or, intern, or transfer care specialist
309.7 	is a person who is mentally ill, mentally incompetent, guilty of a felony or gross 
309.8 	misdemeanor, guilty of violations of federal or state narcotics laws or controlled substances 
309.9 	acts; appoints a guardian or conservator for the licensee or, intern, or transfer care specialist; 
309.10 	or commits a licensee or, intern, or transfer care specialist.

309.11 	Sec. 11. Minnesota Statutes 2022, section 149A.62, is amended to read:
309.12 	149A.62 IMMUNITY; REPORTING.
309.13 	Any person, private agency, organization, society, association, licensee, or intern, or 
309.14 	transfer care specialist who, in good faith, submits information to a regulatory agency under 
309.15 	section 149A.61 or otherwise reports violations or alleged violations of this chapter, is 
309.16 	immune from civil liability or criminal prosecution. This section does not prohibit disciplinary 
309.17 	action taken by the commissioner against any licensee or, intern, or transfer care specialist
309.18 	pursuant to a self report of a violation.

309.19 	Sec. 12. Minnesota Statutes 2022, section 149A.63, is amended to read:
309.20 	149A.63 PROFESSIONAL COOPERATION.
309.21 	A licensee, clinical student, practicum student, intern, transfer care specialist, or applicant 
309.22 	for licensure under this chapter that is the subject of or part of an inspection or investigation 
309.23 	by the commissioner or the commissioner's designee shall cooperate fully with the inspection 
309.24 	or investigation. Failure to cooperate constitutes grounds for disciplinary action under this 
309.25 	chapter.

309.26 	Sec. 13. Minnesota Statutes 2022, section 149A.65, subdivision 2, is amended to read:
309.27 		Subd. 2.Mortuary science fees. Fees for mortuary science are:
309.28 	(1) $75 for the initial and renewal registration of a mortuary science intern;
309.29 	(2) $125 for the mortuary science examination;
309.30 	(3) $200 for issuance of initial and renewal mortuary science licenses;
310.1 	(4) $100 late fee charge for a license renewal; and
310.2 	(5) $250 for issuing a mortuary science license by endorsement.; and
310.3 	(6) $226 for the initial and renewal registration of a transfer care specialist.

310.4 	Sec. 14. Minnesota Statutes 2022, section 149A.70, subdivision 3, is amended to read:
310.5 		Subd. 3.Advertising. No licensee, clinical student, practicum student, or intern, or 
310.6 	transfer care specialist shall publish or disseminate false, misleading, or deceptive advertising. 
310.7 	False, misleading, or deceptive advertising includes, but is not limited to:
310.8 	(1) identifying, by using the names or pictures of, persons who are not licensed to practice 
310.9 	mortuary science in a way that leads the public to believe that those persons will provide 
310.10 	mortuary science services;
310.11 	(2) using any name other than the names under which the funeral establishment, alkaline 
310.12 	hydrolysis facility, or crematory is known to or licensed by the commissioner;
310.13 	(3) using a surname not directly, actively, or presently associated with a licensed funeral 
310.14 	establishment, alkaline hydrolysis facility, or crematory, unless the surname had been 
310.15 	previously and continuously used by the licensed funeral establishment, alkaline hydrolysis 
310.16 	facility, or crematory; and
310.17 	(4) using a founding or establishing date or total years of service not directly or 
310.18 	continuously related to a name under which the funeral establishment, alkaline hydrolysis 
310.19 	facility, or crematory is currently or was previously licensed.
310.20 	Any advertising or other printed material that contains the names or pictures of persons 
310.21 	affiliated with a funeral establishment, alkaline hydrolysis facility, or crematory shall state 
310.22 	the position held by the persons and shall identify each person who is licensed or unlicensed 
310.23 	under this chapter.

310.24 	Sec. 15. Minnesota Statutes 2022, section 149A.70, subdivision 4, is amended to read:
310.25 		Subd. 4.Solicitation of business. No licensee shall directly or indirectly pay or cause 
310.26 	to be paid any sum of money or other valuable consideration for the securing of business 
310.27 	or for obtaining the authority to dispose of any dead human body.
310.28 	For purposes of this subdivision, licensee includes a registered intern, transfer care 
310.29 	specialist, or any agent, representative, employee, or person acting on behalf of the licensee.

311.1 	Sec. 16. Minnesota Statutes 2022, section 149A.70, subdivision 5, is amended to read:
311.2 		Subd. 5.Reimbursement prohibited. No licensee, clinical student, practicum student, 
311.3 	or intern, or transfer care specialist shall offer, solicit, or accept a commission, fee, bonus, 
311.4 	rebate, or other reimbursement in consideration for recommending or causing a dead human 
311.5 	body to be disposed of by a specific body donation program, funeral establishment, alkaline 
311.6 	hydrolysis facility, crematory, mausoleum, or cemetery.

311.7 	Sec. 17. Minnesota Statutes 2022, section 149A.70, subdivision 7, is amended to read:
311.8 		Subd. 7.Unprofessional conduct. No licensee or, intern, or transfer care specialist shall 
311.9 	engage in or permit others under the licensee's or, intern's, or transfer care specialist's
311.10 	supervision or employment to engage in unprofessional conduct. Unprofessional conduct 
311.11 	includes, but is not limited to:
311.12 	(1) harassing, abusing, or intimidating a customer, employee, or any other person 
311.13 	encountered while within the scope of practice, employment, or business;
311.14 	(2) using profane, indecent, or obscene language within the immediate hearing of the 
311.15 	family or relatives of the deceased;
311.16 	(3) failure to treat with dignity and respect the body of the deceased, any member of the 
311.17 	family or relatives of the deceased, any employee, or any other person encountered while 
311.18 	within the scope of practice, employment, or business;
311.19 	(4) the habitual overindulgence in the use of or dependence on intoxicating liquors, 
311.20 	prescription drugs, over-the-counter drugs, illegal drugs, or any other mood altering 
311.21 	substances that substantially impair a person's work-related judgment or performance;
311.22 	(5) revealing personally identifiable facts, data, or information about a decedent, customer, 
311.23 	member of the decedent's family, or employee acquired in the practice or business without 
311.24 	the prior consent of the individual, except as authorized by law;
311.25 	(6) intentionally misleading or deceiving any customer in the sale of any goods or services 
311.26 	provided by the licensee;
311.27 	(7) knowingly making a false statement in the procuring, preparation, or filing of any 
311.28 	required permit or document; or
311.29 	(8) knowingly making a false statement on a record of death.

312.1 	Sec. 18. Minnesota Statutes 2022, section 149A.90, subdivision 2, is amended to read:
312.2 		Subd. 2.Removal from place of death. No person subject to regulation under this 
312.3 	chapter shall remove or cause to be removed any dead human body from the place of death 
312.4 	without being licensed or registered by the commissioner. Every dead human body shall be 
312.5 	removed from the place of death by a licensed mortician or funeral director, except as 
312.6 	provided in section 149A.01, subdivision 3.

312.7 	Sec. 19. Minnesota Statutes 2022, section 149A.90, subdivision 4, is amended to read:
312.8 		Subd. 4.Certificate of removal. No dead human body shall be removed from the place 
312.9 	of death by a mortician or, funeral director, or transfer care specialist or by a noncompensated 
312.10 	person with the right to control the dead human body without the completion of a certificate 
312.11 	of removal and, where possible, presentation of a copy of that certificate to the person or a 
312.12 	representative of the legal entity with physical or legal custody of the body at the death site. 
312.13 	The certificate of removal shall be in the format provided by the commissioner that contains, 
312.14 	at least, the following information:
312.15 	(1) the name of the deceased, if known;
312.16 	(2) the date and time of removal;
312.17 	(3) a brief listing of the type and condition of any personal property removed with the 
312.18 	body;
312.19 	(4) the location to which the body is being taken;
312.20 	(5) the name, business address, and license number of the individual making the removal; 
312.21 	and
312.22 	(6) the signatures of the individual making the removal and, where possible, the individual 
312.23 	or representative of the legal entity with physical or legal custody of the body at the death 
312.24 	site.

312.25 	Sec. 20. Minnesota Statutes 2022, section 149A.90, subdivision 5, is amended to read:
312.26 		Subd. 5.Retention of certificate of removal. A copy of the certificate of removal shall 
312.27 	be given, where possible, to the person or representative of the legal entity having physical 
312.28 	or legal custody of the body at the death site. The original certificate of removal shall be 
312.29 	retained by the individual making the removal and shall be kept on file, at the funeral 
312.30 	establishment to which the body was taken, for a period of three calendar years following 
312.31 	the date of the removal. If the removal was performed by a transfer care specialist not 
313.1 	employed by the funeral establishment to which the body was taken, the transfer care 
313.2 	specialist must retain a copy of the certificate of removal at the transfer care specialist's 
313.3 	business address as registered with the commissioner for a period of three calendar years 
313.4 	following the date of removal. Following this period, and subject to any other laws requiring 
313.5 	retention of records, the funeral establishment may then place the records in storage or 
313.6 	reduce them to microfilm, microfiche, laser disc, or any other method that can produce an 
313.7 	accurate reproduction of the original record, for retention for a period of ten calendar years 
313.8 	from the date of the removal of the body. At the end of this period and subject to any other 
313.9 	laws requiring retention of records, the funeral establishment may destroy the records by 
313.10 	shredding, incineration, or any other manner that protects the privacy of the individuals 
313.11 	identified in the records.

313.12 	ARTICLE 19
313.13 	BEHAVIOR ANALYST LICENSURE

313.14 	Section 1. [148.9981] DEFINITIONS.
313.15 		Subdivision 1.Scope. For the purposes of sections 148.9981 to 148.9995, the terms in 
313.16 	this section have the meanings given.
313.17 		Subd. 2.Accredited school or educational program. "Accredited school or educational 
313.18 	program" means a school, university, college, or other postsecondary education program 
313.19 	that, at the time the student completes the program, is accredited by a regional accrediting 
313.20 	association whose standards are substantially equivalent to those of the North Central 
313.21 	Association of Colleges and Postsecondary Education Institutions or an accrediting 
313.22 	association that evaluates schools of behavior analysis, psychology, or education for inclusion 
313.23 	of the education, practicum, and core function standards.
313.24 		Subd. 3.Advisory council. "Advisory council" means the Behavior Analyst Advisory 
313.25 	Council established in section 148.9994.
313.26 		Subd. 4.Board. "Board" means the Board of Psychology established in section 148.90.
313.27 		Subd. 5.Certifying entity. "Certifying entity" means the Behavior Analyst Certification 
313.28 	Board, Inc., or a successor organization or other organization approved by the board in 
313.29 	consultation with the advisory council.
313.30 		Subd. 6.Client. "Client" means an individual who is the recipient of behavior analysis 
313.31 	services. Client also means "patient" as defined in section 144.291, subdivision 2, paragraph 
313.32 	(g).
314.1 		Subd. 7.Licensed behavior analyst. "Licensed behavior analyst" or "behavior analyst" 
314.2 	means an individual who holds a valid license issued under sections 148.9981 to 148.9995 
314.3 	to engage in the practice of applied behavior analysis.
314.4 		Subd. 8.Licensee. "Licensee" means an individual who holds a valid license issued 
314.5 	under sections 148.9981 to 148.9995.
314.6 		Subd. 9.Practice of applied behavior analysis. (a) "Practice of applied behavior 
314.7 	analysis" means the design, implementation, and evaluation of social, instructional, and 
314.8 	environmental modifications to produce socially significant improvements in human behavior. 
314.9 	The practice of applied behavior analysis includes the empirical identification of functional 
314.10 	relations between behavior and environmental factors, known as functional behavioral 
314.11 	assessment and analysis. Applied behavior analysis interventions are based on scientific 
314.12 	research, direct and indirect observation, and measurement of behavior and environment 
314.13 	and utilize contextual factors, motivating operations, antecedent stimuli, positive 
314.14 	reinforcement, and other procedures to help individuals develop new behaviors, increase 
314.15 	or decrease existing behaviors, and emit behaviors under specific social, instructional, and 
314.16 	environmental conditions.
314.17 	(b) The practice of applied behavior analysis does not include the diagnosis of psychiatric 
314.18 	or mental health disorders, psychological testing, neuropsychology, psychotherapy, cognitive 
314.19 	therapy, sex therapy, hypnotherapy, psychoanalysis, or psychological counseling.

314.20 	EFFECTIVE DATE. This section is effective July 1, 2024.

314.21 	Sec. 2. [148.9982] DUTIES OF THE BOARD OF PSYCHOLOGY.
314.22 		Subdivision 1.General. The board, in consultation with the advisory council, must:
314.23 	(1) adopt and enforce standards for licensure, licensure renewal, and the regulation of 
314.24 	behavior analysts;
314.25 	(2) issue licenses to qualified individuals under sections 148.9981 to 148.9995;
314.26 	(3) carry out disciplinary actions against licensed behavior analysts;
314.27 	(4) educate the public about the existence and content of the regulations for behavior 
314.28 	analyst licensing to enable consumers to file complaints against licensees who may have 
314.29 	violated laws or rules the board is empowered to enforce; and
314.30 	(5) collect license fees for behavior analysts as specified under section 148.9995.
314.31 		Subd. 2.Rulemaking. The board, in consultation with the advisory council, may adopt 
314.32 	rules necessary to carry out the provisions of sections 148.9981 to 148.9995.

315.1 	EFFECTIVE DATE. This section is effective July 1, 2024.

315.2 	Sec. 3. [148.9983] REQUIREMENTS FOR LICENSURE.
315.3 		Subdivision 1.General. An individual seeking licensure as a behavior analyst must 
315.4 	complete and submit a written application on forms provided by the board together with 
315.5 	the appropriate fee as specified under section 148.9995.
315.6 		Subd. 2.Requirements for licensure. An applicant for licensure as a behavior analyst 
315.7 	must submit evidence satisfactory to the board that the applicant:
315.8 	(1) has a current and active national certification as a board-certified behavior analyst 
315.9 	issued by the certifying entity; or
315.10 	(2) has completed the equivalent requirements for certification by the certifying entity, 
315.11 	including satisfactorily passing a psychometrically valid examination administered by a 
315.12 	nationally accredited credentialing organization.
315.13 		Subd. 3.Background investigation. The applicant must complete a background check 
315.14 	pursuant to section 214.075.

315.15 	EFFECTIVE DATE. This section is effective July 1, 2024.

315.16 	Sec. 4. [148.9984] LICENSE RENEWAL REQUIREMENTS.
315.17 		Subdivision 1.Biennial renewal. A license must be renewed every two years.
315.18 		Subd. 2.License renewal notice. At least 60 calendar days before the renewal deadline 
315.19 	date, the board must mail a renewal notice to the licensee's last known address on file with 
315.20 	the board. The notice must include instructions for accessing an online application for license 
315.21 	renewal, the renewal deadline, and notice of fees required for renewal. The licensee's failure 
315.22 	to receive notice does not relieve the licensee of the obligation to meet the renewal deadline 
315.23 	and other requirements for license renewal.
315.24 		Subd. 3.Renewal requirements. (a) To renew a license, a licensee must submit to the 
315.25 	board:
315.26 	(1) a completed and signed application for license renewal;
315.27 	(2) the license renewal fee as specified under section 148.9995; and
315.28 	(3) evidence satisfactory to the board that the licensee holds a current and active national 
315.29 	certification as a behavior analyst from the certifying entity or otherwise meets renewal 
315.30 	requirements as established by the board, in consultation with the advisory council.
316.1 	(b) The application for license renewal and fee must be postmarked or received by the 
316.2 	board by the end of the day on which the license expires or the following business day if 
316.3 	the expiration date falls on a Saturday, Sunday, or holiday. A renewal application that is 
316.4 	not completed and signed, or that is not accompanied by the correct fee, is void and must 
316.5 	be returned to the licensee.
316.6 		Subd. 4.Pending renewal. If a licensee's application for license renewal is postmarked 
316.7 	or received by the board by the end of the business day on the expiration date of the license 
316.8 	or the following business day if the expiration date falls on a Saturday, Sunday, or holiday, 
316.9 	the licensee may continue to practice after the expiration date while the application for 
316.10 	license renewal is pending with the board.
316.11 		Subd. 5.Late renewal fee. If the application for license renewal is postmarked or 
316.12 	received after the expiration date of the license or the following business day if the expiration 
316.13 	date falls on a Saturday, Sunday, or holiday, the licensee must pay a biennial renewal late 
316.14 	fee as specified by section 148.9995, in addition to the renewal fee, before the licensee's 
316.15 	application for license renewal will be considered by the board.

316.16 	EFFECTIVE DATE. This section is effective July 1, 2024.

316.17 	Sec. 5. [148.9985] EXPIRED LICENSE.
316.18 	(a) Within 30 days after the renewal date, a licensee who has not renewed their license 
316.19 	must be notified by letter, sent to the last known address of the licensee in the board's file, 
316.20 	that the renewal is overdue and that failure to pay the current fee and current biennial renewal 
316.21 	late fee within 60 days after the renewal date will result in termination of the license.
316.22 	(b) The board must terminate the license of a licensee whose license renewal is at least 
316.23 	60 days overdue and to whom notification has been sent as provided in paragraph (a). Failure 
316.24 	of a licensee to receive notification is not grounds for later challenge of the termination. 
316.25 	The former licensee must be notified of the termination by letter within seven days after 
316.26 	board action, in the same manner as provided in paragraph (a).
316.27 	(c) Notwithstanding paragraph (b), the board retains jurisdiction over a former licensee 
316.28 	for complaints received after termination of a license regarding conduct that occurred during 
316.29 	licensure.

316.30 	EFFECTIVE DATE. This section is effective July 1, 2024.

317.1 	Sec. 6. [148.9986] PROHIBITED PRACTICE OR USE OF TITLES; PENALTY.
317.2 		Subdivision 1.Practice. Effective January 1, 2025, an individual must not engage in 
317.3 	the practice of applied behavior analysis unless the individual is licensed under sections 
317.4 	148.9981 to 148.9995 as a behavior analyst or is exempt under section 148.9987. A 
317.5 	psychologist licensed under sections 148.88 to 148.981 who practices behavior analysis is 
317.6 	not required to obtain a license as a behavior analyst under sections 148.9981 to 148.9995.
317.7 		Subd. 2.Use of titles. (a) An individual must not use a title incorporating the words 
317.8 	"licensed behavior analyst," or "behavior analyst," or use any other title or description stating 
317.9 	or implying that they are licensed or otherwise qualified to practice applied behavior analysis, 
317.10 	unless that person holds a valid license under sections 148.9981 to 148.9995.
317.11 	(b) Notwithstanding paragraph (a), a licensed psychologist who practices applied behavior 
317.12 	analysis within the psychologist's scope of practice may use the title "behavior analyst," but 
317.13 	must not use the title "licensed behavior analyst" unless the licensed psychologist holds a 
317.14 	valid license as a behavior analyst issued under sections 148.9981 to 148.9995.
317.15 		Subd. 3.Penalty. An individual who violates this section is guilty of a misdemeanor.

317.16 	EFFECTIVE DATE. This section is effective July 1, 2024.

317.17 	Sec. 7. [148.9987] EXCEPTIONS TO LICENSE REQUIREMENT.
317.18 	(a) Sections 148.9981 to 148.9995 must not be construed to prohibit or restrict:
317.19 	(1) the practice of an individual who is licensed to practice psychology in the state or 
317.20 	an individual who is providing psychological services under the supervision of a licensed 
317.21 	psychologist in accordance with section 148.925;
317.22 	(2) the practice of any other profession or occupation licensed, certified, or registered 
317.23 	by the state by an individual duly licensed, certified, or registered to practice the profession 
317.24 	or occupation or to perform any act that falls within the scope of practice of the profession 
317.25 	or occupation;
317.26 	(3) an individual who is employed by a school district from providing behavior analysis 
317.27 	services as part of the individual's employment with the school district, so long as the 
317.28 	individual does not provide behavior analysis services to any person or entity other than as 
317.29 	an employee of the school district or accept remuneration for the provision of behavior 
317.30 	analysis services outside of the individual's employment with the school district;
317.31 	(4) an employee of a program licensed under chapter 245D from providing the services 
317.32 	described in section 245D.091, subdivision 1;
318.1 	(5) teaching behavior analysis or conducting behavior analysis research if the teaching 
318.2 	or research does not involve the direct delivery of behavior analysis services;
318.3 	(6) providing behavior analysis services by an unlicensed supervisee or trainee under 
318.4 	the authority and direction of a licensed behavior analyst and in compliance with the licensure 
318.5 	and supervision standards required by law or rule;
318.6 	(7) a family member or guardian of the recipient of behavior analysis services from 
318.7 	performing behavior analysis services under the authority and direction of a licensed behavior 
318.8 	analyst; or
318.9 	(8) students or interns enrolled in an accredited school or educational program, or 
318.10 	participating in a behavior analysis practicum, from engaging in the practice of applied 
318.11 	behavior analysis while supervised by a licensed behavior analyst or instructor of an 
318.12 	accredited school or educational program. These individuals must be designated as a behavior 
318.13 	analyst student or intern.
318.14 	(b) Notwithstanding paragraph (a), a licensed psychologist may supervise an unlicensed 
318.15 	supervisee, trainee, student, or intern who is engaged in the practice of behavior analysis if 
318.16 	the supervision is authorized under the Minnesota Psychology Practice Act.

318.17 	EFFECTIVE DATE. This section is effective July 1, 2024.

318.18 	Sec. 8. [148.9988] NONTRANSFERABILITY OF LICENSES.
318.19 	A behavior analyst license is not transferable.

318.20 	EFFECTIVE DATE. This section is effective July 1, 2024.

318.21 	Sec. 9. [148.9989] DUTY TO MAINTAIN CURRENT INFORMATION.
318.22 	All licensees and applicants for licensure must notify the board within 30 days of the 
318.23 	occurrence of:
318.24 	(1) a change of name, address, place of employment, or home or business telephone 
318.25 	number; or
318.26 	(2) a change in any other application information.

318.27 	EFFECTIVE DATE. This section is effective July 1, 2024.

318.28 	Sec. 10. [148.999] DISCIPLINE; REPORTING.
318.29 	For purposes of sections 148.9981 to 148.9995, behavior analysts are subject to the 
318.30 	provisions of sections 148.941, 148.952 to 148.965, and 148.98.

319.1 	EFFECTIVE DATE. This section is effective July 1, 2024.

319.2 	Sec. 11. [148.9991] COMPETENT PROVISION OF SERVICES.
319.3 		Subdivision 1.Limits on practice. Behavior analysts must limit practice to the client 
319.4 	populations and services for which the behavior analysts have competence or for which the 
319.5 	behavior analysts are developing competence.
319.6 		Subd. 2.Developing competence. When a behavior analyst is developing competence 
319.7 	in a service, method, or procedure, or is developing competence to treat a specific client 
319.8 	population, the behavior analyst must obtain professional education, training, continuing 
319.9 	education, consultation, supervision or experience, or a combination thereof, necessary to 
319.10 	demonstrate competence.
319.11 		Subd. 3.Limitations. A behavior analyst must recognize the limitations to the scope of 
319.12 	practice of applied behavior analysis. When the needs of a client appear to be outside the 
319.13 	behavior analyst's scope of practice, the behavior analyst must inform the client that there 
319.14 	may be other professional, technical, community, and administrative resources available to 
319.15 	the client. A behavior analyst must assist with identifying resources when it is in the best 
319.16 	interest of a client to be provided with alternative or complementary services.
319.17 		Subd. 4.Burden of proof. Whenever a complaint is submitted to the board involving 
319.18 	a violation of this section, the burden of proof is on the behavior analyst to demonstrate that 
319.19 	the elements of competence have been reasonably met.

319.20 	EFFECTIVE DATE. This section is effective July 1, 2024.

319.21 	Sec. 12. [148.9992] DUTY TO WARN; LIMITATION ON LIABILITY; VIOLENT 
319.22 	BEHAVIOR OF PATIENT.
319.23 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms in this 
319.24 	subdivision have the meanings given.
319.25 	(b) "Other person" means an immediate family member or someone who personally 
319.26 	knows the client and has reason to believe the client is capable of and will carry out a serious, 
319.27 	specific threat of harm to a specific, clearly identified or identifiable victim.
319.28 	(c) "Reasonable efforts" means communicating a serious, specific threat to the potential 
319.29 	victim and, if unable to make contact with the potential victim, communicating the serious, 
319.30 	specific threat to the law enforcement agency closest to the potential victim or the client.
320.1 	(d) "Licensee" has the meaning given in section 148.9981 and includes behavior analysis 
320.2 	students, interns, and unlicensed supervisees who are participating in a behavior analysis 
320.3 	practicum or enrolled in an accredited school or educational program.
320.4 		Subd. 2.Duty to warn. The duty to predict, warn of, or take reasonable precautions to 
320.5 	provide protection from violent behavior arises only when a client or other person has 
320.6 	communicated to the licensee a specific, serious threat of physical violence against a specific, 
320.7 	clearly identified or identifiable potential victim. If a duty to warn arises, the duty is 
320.8 	discharged by the licensee if reasonable efforts are made to communicate the threat.
320.9 		Subd. 3.Liability standard. If no duty to warn exists under subdivision 2, then no 
320.10 	monetary liability and no cause of action may arise against a licensee for failure to predict, 
320.11 	warn of, or take reasonable precautions to provide protection from a client's violent behavior.
320.12 		Subd. 4.Disclosure of confidences. Good faith compliance with the duty to warn must 
320.13 	not constitute a breach of confidence and must not result in monetary liability or a cause of 
320.14 	action against the licensee.
320.15 		Subd. 5.Continuity of care. Subdivision 2 must not be construed to authorize a licensee 
320.16 	to terminate treatment of a client as a direct result of a client's violent behavior or threat of 
320.17 	physical violence unless the client is referred to another practitioner or appropriate health 
320.18 	care facility.
320.19 		Subd. 6.Exception. This section does not apply to a threat to commit suicide or other 
320.20 	threats by a client to harm the client, or to a threat by a client who is adjudicated as a person 
320.21 	who has a mental illness and is dangerous to the public under chapter 253B.
320.22 		Subd. 7.Optional disclosure. This section must not be construed to prohibit a licensee 
320.23 	from disclosing confidences to third parties in a good faith effort to warn or take precautions 
320.24 	against a client's violent behavior or threat to commit suicide for which a duty to warn does 
320.25 	not arise.
320.26 		Subd. 8.Limitation on liability. No monetary liability and no cause of action or 
320.27 	disciplinary action by the board may arise against a licensee for disclosure of confidences 
320.28 	to third parties, for failure to disclose confidences to third parties, or for erroneous disclosure 
320.29 	of confidences to third parties in a good faith effort to warn against or take precautions 
320.30 	against a client's violent behavior or threat of suicide for which a duty to warn does not 
320.31 	arise.

320.32 	EFFECTIVE DATE. This section is effective July 1, 2024.

321.1 	Sec. 13. [148.9993] INFORMED CONSENT.
321.2 		Subdivision 1.Obtaining informed consent for services. A behavior analyst must 
321.3 	obtain informed consent from the client or the client's legal guardian before initiating 
321.4 	services. The informed consent must be in writing, signed by the client, and include, at a 
321.5 	minimum, the following:
321.6 	(1) consent for the behavior analyst to engage in activities that directly affect the client;
321.7 	(2) the goals, purposes, and procedures of the proposed services;
321.8 	(3) the factors that may impact the duration of the proposed services;
321.9 	(4) the applicable fee schedule for the proposed services;
321.10 	(5) the significant risks and benefits of the proposed services;
321.11 	(6) the behavior analyst's limits under section 148.9991, including, if applicable, 
321.12 	information that the behavior analyst is developing competence in the proposed service, 
321.13 	method, or procedure, and alternatives to the proposed service, if any; and
321.14 	(7) the behavior analyst's responsibilities if the client terminates the service.
321.15 		Subd. 2.Updating informed consent. If there is a substantial change in the nature or 
321.16 	purpose of a service, the behavior analyst must obtain a new informed consent from the 
321.17 	client.
321.18 		Subd. 3.Emergency or crisis services. Informed consent is not required when a behavior 
321.19 	analyst is providing emergency or crisis services. If services continue after the emergency 
321.20 	or crisis has abated, informed consent must be obtained.

321.21 	EFFECTIVE DATE. This section is effective July 1, 2024.

321.22 	Sec. 14. [148.9994] BEHAVIOR ANALYST ADVISORY COUNCIL.
321.23 		Subdivision 1.Membership. The Behavior Analyst Advisory Council is created and 
321.24 	composed of five members appointed by the board. The advisory council consists of:
321.25 	(1) one public member as defined in section 214.02;
321.26 	(2) three members who are licensed behavior analysts; and
321.27 	(3) one member who is a licensed psychologist and, to the extent practicable, who 
321.28 	practices applied behavior analysis.
321.29 		Subd. 2.Administration. The advisory council is established and administered under 
321.30 	section 15.059, except that the advisory council does not expire.
322.1 		Subd. 3.Duties. The advisory council must:
322.2 	(1) advise the board regarding standards for behavior analysts;
322.3 	(2) assist with the distribution of information regarding behavior analyst standards;
322.4 	(3) advise the board on enforcement of sections 148.9981 to 148.9995;
322.5 	(4) review license applications and license renewal applications and make 
322.6 	recommendations to the board;
322.7 	(5) review complaints and complaint investigation reports and make recommendations 
322.8 	to the board on whether disciplinary action should be taken and, if applicable, what type;
322.9 	(6) advise the board regarding evaluation and treatment protocols; and
322.10 	(7) perform other duties authorized for advisory councils under chapter 214 as directed 
322.11 	by the board to ensure effective oversight of behavior analysts.

322.12 	EFFECTIVE DATE. This section is effective July 1, 2024.

322.13 	Sec. 15. [148.9995] FEES.
322.14 		Subdivision 1.Fees. All applicants and licensees must pay fees as follows:
322.15 	(1) application fee, $225;
322.16 	(2) license renewal fee, $225;
322.17 	(3) inactive license renewal fee, $125;
322.18 	(4) biennial renewal late fee, $100;
322.19 	(5) inactive license renewal late fee, $100; and
322.20 	(6) supervisor application processing fee, $225.
322.21 		Subd. 2.Nonrefundable fees. All fees in this section are nonrefundable.
322.22 		Subd. 3.Deposit of fees. Fees collected by the board under this section must be deposited 
322.23 	in the state government special revenue fund.

322.24 	EFFECTIVE DATE. This section is effective July 1, 2024.

322.25 	Sec. 16. INITIAL BEHAVIOR ANALYST ADVISORY COUNCIL.
 322.26 	The Board of Psychology must make the first appointments to the Behavior Analyst 
322.27 	Advisory Council authorized under Minnesota Statutes, section 148.9994, by September 1, 
322.28 	2024. The initial behavior analysts appointed to the advisory council need not be licensed 
323.1 	under Minnesota Statutes, sections 148.9981 to 148.9995, but must hold a current and active 
323.2 	national certification as a board certified behavior analyst. The chair of the Board of 
323.3 	Psychology must convene the first meeting of the council by September 1, 2024, and must 
323.4 	convene subsequent meetings of the council until an advisory chair is elected. The council 
323.5 	must elect a chair from its members by the third meeting of the council.

323.6 	EFFECTIVE DATE. This section is effective July 1, 2024.

323.7 	ARTICLE 20
323.8 	BOARD OF VETERINARY MEDICINE

323.9 	Section 1. Minnesota Statutes 2022, section 156.001, is amended by adding a subdivision 
323.10 	to read:
323.11 		Subd. 5a.Direct supervision. "Direct supervision" means:
323.12 	(1) when a supervising veterinarian or licensed veterinary technician is in the immediate 
323.13 	area and within audible or visual range of an animal and the unlicensed veterinary employee 
323.14 	treating the animal;
323.15 	(2) the supervising veterinarian has met the requirements of a veterinarian-client-patient 
323.16 	relationship under section 156.16, subdivision 12; and
323.17 	(3) the supervising veterinarian assumes responsibility for the professional care given 
323.18 	to an animal by a person working under the veterinarian's direction.

323.19 	EFFECTIVE DATE. This section is effective July 1, 2026.

323.20 	Sec. 2. Minnesota Statutes 2022, section 156.001, is amended by adding a subdivision to 
323.21 	read:
323.22 		Subd. 7a.Licensed veterinary technician. "Licensed veterinary technician" means a 
323.23 	person licensed by the board under section 156.077.

323.24 	EFFECTIVE DATE. This section is effective July 1, 2026.

323.25 	Sec. 3. Minnesota Statutes 2022, section 156.001, is amended by adding a subdivision to 
323.26 	read:
323.27 		Subd. 10b.Remote supervision. "Remote supervision" means:
323.28 	(1) a veterinarian is not on the premises but is acquainted with the keeping and care of 
323.29 	an animal by virtue of an examination of the animal or medically appropriate and timely 
323.30 	visits to the premises where the animal is kept;
324.1 	(2) the veterinarian has given written or oral instructions to a licensed veterinary 
324.2 	technician for ongoing care of an animal and is available by telephone or other form of 
324.3 	immediate communication; and
324.4 	(3) the employee treating the animal timely enters into the animal's medical record 
324.5 	documentation of the treatment provided and the documentation is reviewed by the 
324.6 	veterinarian.

324.7 	EFFECTIVE DATE. This section is effective July 1, 2026.

324.8 	Sec. 4. Minnesota Statutes 2022, section 156.001, is amended by adding a subdivision to 
324.9 	read:
324.10 		Subd. 12.Veterinary technology. "Veterinary technology" means the science and 
324.11 	practice of providing professional support to veterinarians, including the direct supervision 
324.12 	of unlicensed veterinary employees. Veterinary technology does not include veterinary 
324.13 	diagnosis, prognosis, surgery, or medication prescription.

324.14 	EFFECTIVE DATE. This section is effective July 1, 2026.

324.15 	Sec. 5. Minnesota Statutes 2022, section 156.07, is amended to read:
324.16 	156.07 LICENSE RENEWAL.
324.17 	Persons licensed under this chapter shall conspicuously display their license in their 
324.18 	principal place of business.
324.19 	Persons now qualified to practice veterinary medicine licensed in this state, or who shall 
324.20 	hereafter be licensed by the Board of Veterinary Medicine to engage in the practice as 
324.21 	veterinarians or veterinary technicians, shall periodically renew their license in a manner 
324.22 	prescribed by the board. The board shall establish license renewal fees and continuing 
324.23 	education requirements. The board may establish, by rule, an inactive license category, at 
324.24 	a lower fee, for licensees not actively engaged in the practice of veterinary medicine or 
324.25 	veterinary technology within the state of Minnesota. The board may assess a charge for 
324.26 	delinquent payment of a renewal fee.
324.27 	Any person who is licensed to practice veterinary medicine or veterinary technology in 
324.28 	this state pursuant to this chapter, shall be entitled to receive a license to continue to practice 
324.29 	upon making application to the board and complying with the terms of this section and rules 
324.30 	of the board.

324.31 	EFFECTIVE DATE. This section is effective July 1, 2026.

325.1 	Sec. 6. [156.0721] INSTITUTIONAL LICENSURE.
325.2 		Subdivision 1.Application and eligibility. (a) Any person who seeks to practice 
325.3 	veterinary medicine while employed by the University of Minnesota and who is not eligible 
325.4 	for a regular license shall make a written application to the board for an institutional license 
325.5 	using forms provided for that purpose or in a format accepted by the board. The board shall 
325.6 	issue an institutional license to practice veterinary medicine to an applicant who:
325.7 	(1) has obtained the degree of doctor of veterinary medicine or its equivalent from a 
325.8 	nonaccredited college of veterinary medicine. A graduate from an accredited college and 
325.9 	an applicant who has earned ECFVG or PAVE certificates should apply for a regular license 
325.10 	to practice veterinary medicine;
325.11 	(2) has passed the Minnesota Veterinary Jurisprudence Examination;
325.12 	(3) is a person of good moral character, as attested by five notarized reference letters 
325.13 	from adults not related to the applicant, at least two of whom are licensed veterinarians in 
325.14 	the jurisdiction where the applicant is currently practicing or familiar with the applicant's 
325.15 	clinical abilities as evidenced in clinical rotations;
325.16 	(4) has paid the license application fee;
325.17 	(5) provides proof of employment by the University of Minnesota;
325.18 	(6) certifies that the applicant understands and agrees that the institutional license is 
325.19 	valid only for the practice of veterinary medicine associated with the applicant's employment 
325.20 	as a faculty member, intern, resident, or locum of the University of Minnesota College of 
325.21 	Veterinary Medicine or other unit of the University of Minnesota;
325.22 	(7) provides proof of graduation from a veterinary college;
325.23 	(8) completed a criminal background check as defined in section 214.075; and
325.24 	(9) provides other information and proof as the board may require by rules and 
325.25 	regulations.
325.26 	(b) The University of Minnesota may submit the applications of its employees who seek 
325.27 	an institutional license in a compiled format acceptable to the board, with any license 
325.28 	application fees in a single form of payment.
325.29 	(c) The fee for a license issued under this subdivision is the same as for a regular license 
325.30 	to practice veterinary medicine in the state. License payment and renewal deadlines, late 
325.31 	payment fees, and other license requirements are also the same as for a regular license to 
325.32 	practice veterinary medicine.
326.1 	(d) The University of Minnesota may be responsible for timely payment of renewal fees 
326.2 	and submission of renewal forms.
326.3 		Subd. 2.Scope of practice. (a) An institutional license holder may practice veterinary 
326.4 	medicine only as related to the license holder's regular function at the University of 
326.5 	Minnesota. A person holding only an institutional license in this state must be remunerated 
326.6 	for the practice of veterinary medicine in the state solely from state, federal, or institutional 
326.7 	funds and not from the patient-owner beneficiary of the license holder's practice efforts.
326.8 	(b) A license issued under this section must be canceled by the board upon receipt of 
326.9 	information from the University of Minnesota that the holder of the license has left or is 
326.10 	otherwise no longer employed at the University of Minnesota in this state.
326.11 	(c) An institutional license holder must abide by all laws governing the practice of 
326.12 	veterinary medicine in the state and is subject to the same disciplinary action as any other 
326.13 	veterinarian licensed in the state.

326.14 	EFFECTIVE DATE. This section is effective July 1, 2025.

326.15 	Sec. 7. [156.076] DIRECT SUPERVISION; UNLICENSED VETERINARY 
326.16 	EMPLOYEES.
326.17 	(a) An unlicensed veterinary employee may only administer medication or render 
326.18 	auxiliary or supporting assistance under the direct supervision of a licensed veterinarian or 
326.19 	licensed veterinary technician.
326.20 	(b) This section does not prohibit:
326.21 	(1) the performance of generalized nursing tasks ordered by the veterinarian and 
326.22 	performed by an unlicensed employee on inpatient animals during the hours when a 
326.23 	veterinarian is not on the premises; or
326.24 	(2) under emergency conditions, an unlicensed employee from rendering lifesaving aid 
326.25 	and treatment to an animal in the absence of a veterinarian if the animal is in a life-threatening 
326.26 	condition and requires immediate treatment to sustain life or prevent further injury.

326.27 	EFFECTIVE DATE. This section is effective July 1, 2026.

326.28 	Sec. 8. [156.077] LICENSED VETERINARY TECHNICIANS.
326.29 		Subdivision 1.Licensure; practice. (a) The board shall issue a license to practice as a 
326.30 	veterinary technician to an applicant who satisfies the requirements in this section and those 
326.31 	imposed by the board in rule. A licensed veterinary technician may practice veterinary 
327.1 	technology. A person may not use the title "veterinary technician" or the abbreviation "LVT" 
327.2 	unless licensed by the board.
327.3 	(b) The board may adopt by rule additional or temporary alternative licensure 
327.4 	requirements or definitions for veterinary technician titles.
327.5 		Subd. 2.Applicants; qualifications. Application for a license to practice veterinary 
327.6 	technology in this state shall be made to the board on a form furnished by the board and 
327.7 	accompanied by evidence satisfactory to the board that the applicant is at least 18 years of 
327.8 	age, is of good moral character, and has:
327.9 	(1) graduated from a veterinary technology program accredited or approved by the 
327.10 	American Veterinary Medical Association or Canadian Veterinary Medical Association;
327.11 	(2) received a passing score for the Veterinary Technician National Examination;
327.12 	(3) received a passing score for the Minnesota Veterinary Technician Jurisprudence 
327.13 	Examination; and
327.14 	(4) completed a criminal background check.
327.15 		Subd. 3.Required with application. A completed application must contain the following 
327.16 	information and material:
327.17 	(1) the application fee set by the board, which is not refundable if permission to take the 
327.18 	jurisprudence examination is denied for good cause;
327.19 	(2) proof of graduation from a veterinary technology program accredited or approved 
327.20 	by the American Veterinary Medical Association or Canadian Veterinary Medical 
327.21 	Association;
327.22 	(3) affidavits from at least two licensed veterinarians and three adults who are not related 
327.23 	to the applicant that establish how long, when, and under what circumstances the references 
327.24 	have known the applicant and any other facts that may enable the board to determine the 
327.25 	applicant's qualifications; and
327.26 	(4) if the applicant has served in the armed forces, a copy of the applicant's discharge 
327.27 	papers.
327.28 		Subd. 4.Temporary alternative qualifications. (a) The board shall consider an 
327.29 	application for licensure submitted by a person before July 1, 2031, if the person provides 
327.30 	evidence satisfactory to the board that the person:
327.31 	(1) is a certified veterinary technician in good standing with the Minnesota Veterinary 
327.32 	Medical Association; or
328.1 	(2) has at least 4,160 hours actively engaged in the practice of veterinary technology 
328.2 	within the previous five years.
328.3 	(b) Each applicant under this subdivision must also submit to the board affidavits from 
328.4 	at least two licensed veterinarians and three adults who are not related to the applicant that 
328.5 	establish how long, when, and under what circumstances the references have known the 
328.6 	applicant and any other facts that may enable the board to determine the applicant's 
328.7 	qualifications.

328.8 	EFFECTIVE DATE. This section is effective July 1, 2026.

328.9 	Sec. 9. [156.078] NONRESIDENTS; LICENSED VETERINARY TECHNICIANS.
328.10 	A credentialed veterinary technician duly admitted to practice in any state, 
328.11 	commonwealth, territory, or district of the United States or province of Canada who desires 
328.12 	permission to practice veterinary technology in this state shall submit an application to the 
328.13 	board on a form furnished by the board. The board shall review an application for transfer 
328.14 	if the applicant submits:
328.15 	(1) a copy of a diploma from an accredited or approved college of veterinary technology 
328.16 	or certification from the dean, registrar, or secretary of an accredited or approved college 
328.17 	of veterinary technology or a certificate of satisfactory completion of the PAVE program;
328.18 	(2) if requesting waiver of examination, evidence of meeting licensure requirements in 
328.19 	the state of the applicant's original licensure;
328.20 	(3) affidavits of two licensed practicing doctors of veterinary medicine or veterinary 
328.21 	technicians residing in the United States or Canadian licensing jurisdiction in which the 
328.22 	applicant is or was most recently practicing, attesting that they are well acquainted with the 
328.23 	applicant, that the applicant is a person of good moral character, and that the applicant has 
328.24 	been actively engaged in practicing or teaching in such jurisdiction;
328.25 	(4) a certificate from the agency that regulates the conduct of practice of veterinary 
328.26 	technology in the jurisdiction in which the applicant is or was most recently practicing, 
328.27 	stating that the applicant is in good standing and is not the subject of disciplinary action or 
328.28 	pending disciplinary action;
328.29 	(5) a certificate from all other jurisdictions in which the applicant holds a currently active 
328.30 	license or held a license within the past ten years, stating that the applicant is and was in 
328.31 	good standing and has not been subject to disciplinary action;
329.1 	(6) in lieu of the certificates in clauses (4) and (5), certification from the Veterinary 
329.2 	Information Verification Agency that the applicant's licensure is in good standing;
329.3 	(7) a fee as set by the board in form of check or money order payable to the board, no 
329.4 	part of which shall be refunded should the application be denied;
329.5 	(8) score reports on previously taken national examinations in veterinary technology, 
329.6 	certified by the Veterinary Information Verification Agency or evidence of employment as 
329.7 	a veterinary technician for at least three years;
329.8 	(9) proof that the applicant received a passing score for the Minnesota Veterinary 
329.9 	Technician Jurisprudence Examination; and
329.10 	(10) proof of a completed criminal background check.

329.11 	EFFECTIVE DATE. This section is effective July 1, 2026.

329.12 	Sec. 10. Minnesota Statutes 2022, section 156.12, subdivision 2, is amended to read:
329.13 		Subd. 2.Authorized activities. No provision of this chapter shall be construed to prohibit:
329.14 	(a) a person from rendering necessary gratuitous assistance in the treatment of any animal 
329.15 	when the assistance does not amount to prescribing, testing for, or diagnosing, operating, 
329.16 	or vaccinating and when the attendance of a licensed veterinarian cannot be procured;
329.17 	(b) a person who is a regular student in an accredited or approved college of veterinary 
329.18 	medicine from performing duties or actions assigned by instructors or preceptors or working 
329.19 	under the direct supervision of a licensed veterinarian;
329.20 	(c) a veterinarian regularly licensed in another jurisdiction from consulting with a licensed 
329.21 	veterinarian in this state;
329.22 	(d) the owner of an animal and the owner's regular employee from caring for and 
329.23 	administering to the animal belonging to the owner, except where the ownership of the 
329.24 	animal was transferred for purposes of circumventing this chapter;
329.25 	(e) veterinarians who are in compliance with subdivision 6 section 156.0721 and who 
329.26 	are employed by the University of Minnesota from performing their duties with the College 
329.27 	of Veterinary Medicine, College of Agriculture, Veterinary Diagnostic Laboratory,
329.28 	Agricultural Experiment Station, Agricultural Extension Service, Medical School, School 
329.29 	of Public Health, School of Nursing, or other unit within the university; or a person from 
329.30 	lecturing or giving instructions or demonstrations at the university or in connection with a 
329.31 	continuing education course or seminar to veterinarians or pathologists at the University of 
329.32 	Minnesota Veterinary Diagnostic Laboratory;
330.1 	(f) any person from selling or applying any pesticide, insecticide or herbicide;
330.2 	(g) any person from engaging in bona fide scientific research or investigations which 
330.3 	reasonably requires experimentation involving animals;
330.4 	(h) any employee of a licensed veterinarian from performing duties other than diagnosis, 
330.5 	prescription or surgical correction under the direction and supervision of the veterinarian, 
330.6 	who shall be responsible for the performance of the employee;
330.7 	(i) a graduate of a foreign college of veterinary medicine from working under the direct 
330.8 	personal instruction, control, or supervision of a veterinarian faculty member of the College 
330.9 	of Veterinary Medicine, University of Minnesota in order to complete the requirements 
330.10 	necessary to obtain an ECFVG or PAVE certificate;
330.11 	(j) a licensed chiropractor registered under section 148.01, subdivision 1a, from practicing 
330.12 	animal chiropractic; or
330.13 	(k) a person certified by the Emergency Medical Services Regulatory Board under 
330.14 	chapter 144E from providing emergency medical care to a police dog wounded in the line 
330.15 	of duty.

330.16 	EFFECTIVE DATE. This section is effective July 1, 2025.

330.17 	Sec. 11. Minnesota Statutes 2022, section 156.12, subdivision 4, is amended to read:
330.18 		Subd. 4.Titles. It is unlawful for a person who has not received a professional degree 
330.19 	from an accredited or approved college of veterinary medicine, or ECFVG or PAVE 
330.20 	certification, or an institutional license under section 156.0721 to use any of the following 
330.21 	titles or designations: Veterinary, veterinarian, animal doctor, animal surgeon, animal dentist, 
330.22 	animal chiropractor, animal acupuncturist, or any other title, designation, word, letter, 
330.23 	abbreviation, sign, card, or device tending to indicate that the person is qualified to practice 
330.24 	veterinary medicine.

330.25 	EFFECTIVE DATE. This section is effective July 1, 2025.

330.26 	Sec. 12. REPEALER.
 330.27 	Minnesota Statutes 2022, section 156.12, subdivision 6, is repealed.

330.28 	EFFECTIVE DATE. This section is effective July 1, 2025.

331.1 	ARTICLE 21
331.2 	BOARD OF DENTISTRY

331.3 	Section 1. Minnesota Statutes 2022, section 150A.06, subdivision 1c, is amended to read:
331.4 		Subd. 1c.Specialty dentists. (a) The board may grant one or more specialty licenses in 
331.5 	the specialty areas of dentistry that are recognized by the Commission on Dental 
331.6 	Accreditation.
331.7 	(b) An applicant for a specialty license shall:
331.8 	(1) have successfully completed a postdoctoral specialty program accredited by the 
331.9 	Commission on Dental Accreditation, or have announced a limitation of practice before 
331.10 	1967;
331.11 	(2) have been certified by a specialty board approved by the Minnesota Board of 
331.12 	Dentistry, or provide evidence of having passed a clinical examination for licensure required 
331.13 	for practice in any state or Canadian province, or in the case of oral and maxillofacial 
331.14 	surgeons only, have a Minnesota medical license in good standing;
331.15 	(3) have been in active practice or a postdoctoral specialty education program or United 
331.16 	States government service at least 2,000 hours in the 36 months prior to applying for a 
331.17 	specialty license;
331.18 	(4) if requested by the board, be interviewed by a committee of the board, which may 
331.19 	include the assistance of specialists in the evaluation process, and satisfactorily respond to 
331.20 	questions designed to determine the applicant's knowledge of dental subjects and ability to 
331.21 	practice;
331.22 	(5) if requested by the board, present complete records on a sample of patients treated 
331.23 	by the applicant. The sample must be drawn from patients treated by the applicant during 
331.24 	the 36 months preceding the date of application. The number of records shall be established 
331.25 	by the board. The records shall be reasonably representative of the treatment typically 
331.26 	provided by the applicant for each specialty area;
331.27 	(6) at board discretion, pass a board-approved English proficiency test if English is not 
331.28 	the applicant's primary language;
331.29 	(7) pass all components of the National Board Dental Examinations;
331.30 	(8) pass the Minnesota Board of Dentistry jurisprudence examination;
331.31 	(9) abide by professional ethical conduct requirements; and
331.32 	(10) meet all other requirements prescribed by the Board of Dentistry.
332.1 	(c) The application must include:
332.2 	(1) a completed application furnished by the board;
332.3 	(2) a nonrefundable fee; and
332.4 	(3) a copy of the applicant's government-issued photo identification card.
332.5 	(d) A specialty dentist holding one or more specialty licenses is limited to practicing in 
332.6 	the dentist's designated specialty area or areas. The scope of practice must be defined by 
332.7 	each national specialty board recognized by the Commission on Dental Accreditation.
332.8 	(e) A specialty dentist holding a general dental license is limited to practicing in the 
332.9 	dentist's designated specialty area or areas if the dentist has announced a limitation of 
332.10 	practice. The scope of practice must be defined by each national specialty board recognized 
332.11 	by the Commission on Dental Accreditation.
332.12 	(f) (e) All specialty dentists who have fulfilled the specialty dentist requirements and 
332.13 	who intend to limit their practice to a particular specialty area or areas may apply for one 
332.14 	or more specialty licenses.

332.15 	Sec. 2. Minnesota Statutes 2022, section 150A.06, subdivision 8, is amended to read:
332.16 		Subd. 8.Licensure by credentials; dental assistant. (a) Any dental assistant may, upon 
332.17 	application and payment of a fee established by the board, apply for licensure based on an 
332.18 	evaluation of the applicant's education, experience, and performance record in lieu of 
332.19 	completing a board-approved dental assisting program for expanded functions as defined 
332.20 	in rule, and may be interviewed by the board to determine if the applicant:
332.21 	(1) has graduated from an accredited dental assisting program accredited by the 
332.22 	Commission on Dental Accreditation and or is currently certified by the Dental Assisting 
332.23 	National Board;
332.24 	(2) is not subject to any pending or final disciplinary action in another state or Canadian 
332.25 	province, or if not currently certified or registered, previously had a certification or 
332.26 	registration in another state or Canadian province in good standing that was not subject to 
332.27 	any final or pending disciplinary action at the time of surrender;
332.28 	(3) is of good moral character and abides by professional ethical conduct requirements;
332.29 	(4) at board discretion, has passed a board-approved English proficiency test if English 
332.30 	is not the applicant's primary language; and
333.1 	(5) has met all expanded functions curriculum equivalency requirements of a Minnesota 
333.2 	board-approved dental assisting program.
333.3 	(b) The board, at its discretion, may waive specific licensure requirements in paragraph 
333.4 	(a).
333.5 	(c) An applicant who fulfills the conditions of this subdivision and demonstrates the 
333.6 	minimum knowledge in dental subjects required for licensure under subdivision 2a must 
333.7 	be licensed to practice the applicant's profession.
333.8 	(d) If the applicant does not demonstrate the minimum knowledge in dental subjects 
333.9 	required for licensure under subdivision 2a, the application must be denied. If licensure is 
333.10 	denied, the board may notify the applicant of any specific remedy that the applicant could 
333.11 	take which, when passed, would qualify the applicant for licensure. A denial does not 
333.12 	prohibit the applicant from applying for licensure under subdivision 2a.
333.13 	(e) A candidate whose application has been denied may appeal the decision to the board 
333.14 	according to subdivision 4a.

333.15 	ARTICLE 22
333.16 	PHYSICIAN ASSISTANT PRACTICE

333.17 	Section 1. REPEALER.
 333.18 	Minnesota Statutes 2022, section 147A.09, subdivision 5, is repealed.

333.19 	ARTICLE 23
333.20 	BOARD OF SOCIAL WORK

333.21 	Section 1. Minnesota Statutes 2022, section 148D.061, subdivision 1, is amended to read:
333.22 		Subdivision 1.Requirements for a provisional license. An applicant may be issued a 
333.23 	provisional license if the applicant:
333.24 	(1) was born in a foreign country;
333.25 	(2) communicates in English as a second language;
333.26 	(3) has taken the applicable examination administered by the Association of Social Work 
333.27 	Boards or similar examination body designated by the board;
333.28 	(4)(1) has met the requirements of section 148E.055, subdivision 2, paragraph (a),
333.29 	clauses (1), (3), (4), (5), and (6); or subdivision 3, paragraph (a), clauses (1), (3), (4), (5), 
334.1 	and (6); or subdivision 4, paragraph (a), clauses (1), (2), (4), (5), (6), and (7); or subdivision 
334.2 	5, paragraph (a), clauses (1), (2), (3), (5), (6), (7), and (8); and
334.3 	(5) (2) complies with the requirements of subdivisions 2 to 7.

334.4 	EFFECTIVE DATE. This section is effective October 1, 2024.

334.5 	Sec. 2. Minnesota Statutes 2022, section 148D.061, subdivision 8, is amended to read:
334.6 		Subd. 8.Disciplinary or other action. A licensee who is issued a provisional license 
334.7 	is subject to the grounds for disciplinary action under section 148E.190. The board may 
334.8 	also take action according to sections 148E.260 to 148E.270 if:
334.9 	(1) the licensee's supervisor does not submit an evaluation as required by section 
334.10 	148D.063;
334.11 	(2) an evaluation submitted according to section 148D.063 indicates that the licensee 
334.12 	cannot practice social work competently and ethically; or
334.13 	(3) the licensee does not comply with the requirements of subdivisions 1 to 7.

334.14 	EFFECTIVE DATE. This section is effective October 1, 2024.

334.15 	Sec. 3. Minnesota Statutes 2022, section 148D.062, subdivision 3, is amended to read:
334.16 		Subd. 3.Types of supervision. (a) Twenty-five hours Half of the supervision hours 
334.17 	required by subdivision 1 must consist of one-on-one in-person supervision. The supervision 
334.18 	must be provided either in person or via eye-to-eye electronic media while maintaining 
334.19 	visual contact.
334.20 	(b) Twelve and one-half hours Half of the supervision hours must consist of one or more 
334.21 	of the following types of supervision:
334.22 	(1) in-person one-on-one supervision provided in person or via eye-to-eye electronic 
334.23 	media while maintaining visual contact; or
334.24 	(2) in-person group supervision provided in person, by telephone, or via eye-to-eye 
334.25 	electronic media while maintaining visual contact.
334.26 	(c) To qualify as in-person Group supervision, the group must not exceed seven members 
334.27 	including the supervisor six supervisees.
334.28 	(d) Supervision must not be provided by email.

334.29 	EFFECTIVE DATE. This section is effective October 1, 2024.

335.1 	Sec. 4. Minnesota Statutes 2022, section 148D.062, subdivision 4, is amended to read:
335.2 		Subd. 4.Supervisor requirements. (a) The supervision required by subdivision 1 must 
335.3 	be provided by a supervisor who meets the requirements in section 148E.120 and has either:
335.4 	(1) 5,000 hours experience engaged in authorized social work practice; or
335.5 	(2) completed 30 hours of training in supervision, which may be satisfied by completing 
335.6 	academic coursework in supervision or continuing education courses in supervision as 
335.7 	defined in section 148E.010, subdivision 18.
335.8 	(b) Supervision must be provided:
335.9 	(1) if the supervisee is not engaged in clinical practice and the supervisee has a provisional 
335.10 	license to practice as a licensed social worker, by:
335.11 	(i) a licensed social worker who has completed the supervised practice requirements;
335.12 	(ii) a licensed graduate social worker who has completed the supervised practice 
335.13 	requirements;
335.14 	(iii) a licensed independent social worker; or
335.15 	(iv) a licensed independent clinical social worker;
335.16 	(2) if the supervisee is not engaged in clinical practice and the supervisee has a provisional 
335.17 	license to practice as a licensed graduate social worker, licensed independent social worker, 
335.18 	or licensed independent clinical social worker, by:
335.19 	(i) a licensed graduate social worker who has completed the supervised practice 
335.20 	requirements;
335.21 	(ii) a licensed independent social worker; or
335.22 	(iii) a licensed independent clinical social worker;
335.23 	(3) if the supervisee is engaged in clinical practice and the supervisee has a provisional 
335.24 	license to practice as a licensed graduate social worker, licensed independent social worker, 
335.25 	or licensed independent clinical social worker, by a licensed independent clinical social 
335.26 	worker; or
335.27 	(4) by a supervisor who meets the requirements in section 148E.120, subdivision 2.

335.28 	EFFECTIVE DATE. This section is effective October 1, 2024.

336.1 	Sec. 5. Minnesota Statutes 2022, section 148D.063, subdivision 1, is amended to read:
336.2 		Subdivision 1.Supervision plan. (a) An applicant granted a provisional license must 
336.3 	submit, on a form provided by the board, a supervision plan for meeting the supervision 
336.4 	requirements in section 148D.062.
336.5 	(b) The supervision plan must be submitted no later than 30 days after the licensee begins 
336.6 	a social work practice position.
336.7 	(c) The board may revoke a licensee's provisional license for failure to submit the 
336.8 	supervision plan within 30 days after beginning a social work practice position.
336.9 	(d) (c) The supervision plan must include the following:
336.10 	(1) the name of the supervisee, the name of the agency in which the supervisee is being 
336.11 	supervised, and the supervisee's position title;
336.12 	(2) the name and qualifications of the person providing the supervision;
336.13 	(3) the number of hours of one-on-one in-person supervision and the number and type 
336.14 	of additional hours of supervision to be completed by the supervisee;
336.15 	(4) the supervisee's position description;
336.16 	(5) a brief description of the supervision the supervisee will receive in the following 
336.17 	content areas:
336.18 	(i) clinical practice, if applicable;
336.19 	(ii) development of professional social work knowledge, skills, and values;
336.20 	(iii) practice methods;
336.21 	(iv) authorized scope of practice;
336.22 	(v) ensuring continuing competence; and
336.23 	(vi) ethical standards of practice; and
336.24 	(6) if applicable, a detailed description of the supervisee's clinical social work practice, 
336.25 	addressing:
336.26 	(i) the client population, the range of presenting issues, and the diagnoses;
336.27 	(ii) the clinical modalities that were utilized; and
336.28 	(iii) the process utilized for determining clinical diagnoses, including the diagnostic 
336.29 	instruments used and the role of the supervisee in the diagnostic process.
337.1 	(e) (d) The board must receive a revised supervision plan within 30 days of any of the 
337.2 	following changes:
337.3 	(1) the supervisee has a new supervisor;
337.4 	(2) the supervisee begins a new social work position;
337.5 	(3) the scope or content of the supervisee's social work practice changes substantially;
337.6 	(4) the number of practice or supervision hours changes substantially; or
337.7 	(5) the type of supervision changes as supervision is described in section 148D.062.
337.8 	(f) The board may revoke a licensee's provisional license for failure to submit a revised 
337.9 	supervision plan as required in paragraph (e).
337.10 	(g) (e) The board must approve the supervisor and the supervision plan.

337.11 	EFFECTIVE DATE. This section is effective October 1, 2024.

337.12 	Sec. 6. Minnesota Statutes 2022, section 148D.063, subdivision 2, is amended to read:
337.13 		Subd. 2.Evaluation. (a) When a licensee's supervisor submits an evaluation to the board 
337.14 	according to section 148D.061, subdivision 6, the supervisee and supervisor must provide 
337.15 	the following information on a form provided by the board:
337.16 	(1) the name of the supervisee, the name of the agency in which the supervisee is being 
337.17 	supervised, and the supervisee's position title;
337.18 	(2) the name and qualifications of the supervisor;
337.19 	(3) the number of hours and dates of each type of supervision completed;
337.20 	(4) the supervisee's position description;
337.21 	(5) a declaration that the supervisee has not engaged in conduct in violation of the 
337.22 	standards of practice in sections 148E.195 to 148E.240;
337.23 	(6) a declaration that the supervisee has practiced competently and ethically according 
337.24 	to professional social work knowledge, skills, and values; and
337.25 	(7) on a form provided by the board, an evaluation of the licensee's practice in the 
337.26 	following areas:
337.27 	(i) development of professional social work knowledge, skills, and values;
337.28 	(ii) practice methods;
337.29 	(iii) authorized scope of practice;
338.1 	(iv) ensuring continuing competence;
338.2 	(v) (iv) ethical standards of practice; and
338.3 	(vi) (v) clinical practice, if applicable.
338.4 	(b) The supervisor must attest to the satisfaction of the board that the supervisee has met 
338.5 	or has made progress on meeting the applicable supervised practice requirements.

338.6 	EFFECTIVE DATE. This section is effective October 1, 2024.

338.7 	Sec. 7. Minnesota Statutes 2022, section 148E.055, is amended by adding a subdivision 
338.8 	to read:
338.9 		Subd. 2b.Qualifications for licensure by completion of provisional license 
338.10 	requirements as a licensed social worker (LSW). To be licensed as a licensed social 
338.11 	worker, an applicant for licensure by completion of provisional license requirements must 
338.12 	provide evidence satisfactory to the board that the applicant:
338.13 	(1) completed all requirements under section 148D.061, subdivisions 1 to 6; and
338.14 	(2) continues to meet the requirements of subdivision 2, clauses (1) and (3) to (6).

338.15 	EFFECTIVE DATE. This section is effective October 1, 2024.

338.16 	Sec. 8. Minnesota Statutes 2022, section 148E.055, is amended by adding a subdivision 
338.17 	to read:
338.18 		Subd. 3b.Qualifications for licensure by completion of provisional license 
338.19 	requirements as a licensed graduate social worker (LGSW). To be licensed as a licensed 
338.20 	graduate social worker, an applicant for licensure by completion of provisional license 
338.21 	requirements must provide evidence satisfactory to the board that the applicant:
338.22 	(1) completed all requirements under section 148D.061, subdivisions 1 to 6; and
338.23 	(2) continues to meet the requirements of subdivision 3, clauses (1) and (3) to (6).

338.24 	EFFECTIVE DATE. This section is effective October 1, 2024.

338.25 	Sec. 9. Minnesota Statutes 2022, section 148E.055, is amended by adding a subdivision 
338.26 	to read:
338.27 		Subd. 4b.Qualifications for licensure by completion of provisional license 
338.28 	requirements as a licensed independent social worker (LISW). To be licensed as a 
339.1 	licensed independent social worker, an applicant for licensure by completion of provisional 
339.2 	license requirements must provide evidence satisfactory to the board that the applicant:
339.3 	(1) completed all requirements under section 148D.061, subdivisions 1 to 6; and
339.4 	(2) continues to meet the requirements of subdivision 4, clauses (1), (2), and (4) to (7).

339.5 	EFFECTIVE DATE. This section is effective October 1, 2024.

339.6 	Sec. 10. Minnesota Statutes 2022, section 148E.055, is amended by adding a subdivision 
339.7 	to read:
339.8 		Subd. 5b.Qualifications for licensure by completion of provisional license 
339.9 	requirements as a licensed independent clinical social worker (LICSW). To be licensed 
339.10 	as a licensed independent clinical social worker, an applicant for licensure by completion 
339.11 	of provisional license requirements must provide evidence satisfactory to the board that the 
339.12 	applicant:
339.13 	(1) completed all requirements under section 148D.061, subdivisions 1 to 6; and
339.14 	(2) continues to meet the requirements of subdivision 5, paragraph (a), clauses (1) to (3) 
339.15 	and (5) to (8).

339.16 	EFFECTIVE DATE. This section is effective October 1, 2024.

339.17 	Sec. 11. REVISOR INSTRUCTION.
 339.18 	The revisor of statutes shall renumber each section of Minnesota Statutes listed in column 
339.19 	A with the number listed in column B. The revisor of statutes shall also make necessary 
339.20 	cross-reference changes in Minnesota Statutes and Minnesota Rules consistent with the 
339.21 	renumbering.

339.22	Column A
	Column B
	
339.23	148D.061
	148E.0551
	
339.24	148D.062
	148E.116
	
339.25	148D.063
	148E.126

339.26 	EFFECTIVE DATE. This section is effective October 1, 2024.

339.27 	Sec. 12. REPEALER.
 339.28 	Minnesota Statutes 2022, section 148D.061, subdivision 9, is repealed.

339.29 	EFFECTIVE DATE. This section is effective October 1, 2024.

340.1 	ARTICLE 24
340.2 	BOARD OF MARRIAGE AND FAMILY THERAPY

340.3 	Section 1. [148B.331] GUEST LICENSURE.
340.4 		Subdivision 1.Generally. (a) A nonresident of the state of Minnesota who is not seeking 
340.5 	licensure in Minnesota and intends to practice marriage and family therapy in Minnesota 
340.6 	must apply to the board for guest licensure. An applicant must apply for guest licensure at 
340.7 	least 30 days prior to the expected date of practice in Minnesota and is subject to approval 
340.8 	by the board or its designee.
340.9 	(b) To be eligible for licensure under this section, the applicant must:
340.10 	(1) have a license, certification, or registration in good standing to practice marriage and 
340.11 	family therapy from another jurisdiction;
340.12 	(2) have a graduate degree in marriage and family therapy from a regionally accredited 
340.13 	institution or a degree in a related field from a regionally accredited institution with completed 
340.14 	coursework meeting the educational requirements provided in Minnesota Rules, part 
340.15 	5300.0140, subpart 2;
340.16 	(3) be of good moral character;
340.17 	(4) have no pending complaints or active disciplinary or corrective actions in any 
340.18 	jurisdiction;
340.19 	(5) submit the required fee and complete the criminal background check according to 
340.20 	section 214.075; and
340.21 	(6) pay a fee to the board in the amount set forth in section 148B.392.
340.22 	(c) A license issued under this section is valid for one year from the date of issuance 
340.23 	and allows practice by the nonresident for a maximum of five months. The months in which 
340.24 	the nonresident may practice under the license must be consecutive. A guest license is not 
340.25 	renewable, but the nonresident may reapply for guest licensure, subject to continued eligibility 
340.26 	under paragraph (b), following expiration of a guest license.
340.27 		Subd. 2.Other professional activity. Notwithstanding subdivision 1, a nonresident of 
340.28 	the state of Minnesota who is not seeking licensure in Minnesota may serve as an expert 
340.29 	witness, organizational consultant, presenter, or educator without obtaining guest licensure, 
340.30 	provided the nonresident is appropriately trained or educated, or has been issued a license, 
340.31 	certificate, or registration by another jurisdiction.
341.1 		Subd. 3.Prohibitions and sanctions. A person's privilege to practice under this section 
341.2 	is subject to the prohibitions and sanctions for unprofessional or unethical conduct contained 
341.3 	in Minnesota laws and rules for marriage and family therapy under this chapter.

341.4 	EFFECTIVE DATE. This section is effective October 1, 2024.

341.5 	Sec. 2. Minnesota Statutes 2023 Supplement, section 148B.392, subdivision 2, is amended 
341.6 	to read:
341.7 		Subd. 2.Licensure and application fees. Licensure and application fees established 
341.8 	by the board shall not exceed the following amounts:
341.9 	(1) application fee for national examination is $150;
341.10 	(2) application fee for Licensed Marriage and Family Therapist (LMFT) state examination
341.11 	license is $150;
341.12 	(3) initial LMFT license fee is prorated, but cannot exceed $225;
341.13 	(4) annual renewal fee for LMFT license is $225;
341.14 	(5) late fee for LMFT license renewal is $100;
341.15 	(6) application fee for LMFT licensure by reciprocity is $300;
341.16 	(7) application fee for initial Licensed Associate Marriage and Family Therapist (LAMFT) 
341.17 	license is $100;
341.18 	(8) annual renewal fee for LAMFT license is $100;
341.19 	(9) late fee for LAMFT license renewal is $50;
341.20 	(10) fee for reinstatement of LMFT or LAMFT license is $150;
341.21 	(11) fee for LMFT emeritus license status is $225; and
341.22 	(12) fee for temporary license for members of the military is $100.; and
341.23 	(13) fee for LMFT guest license is $150.

341.24 	EFFECTIVE DATE. This section is effective October 1, 2024.

342.1 	ARTICLE 25
342.2 	SPEECH-LANGUAGE PATHOLOGY ASSISTANT LICENSURE

342.3 	Section 1. Minnesota Statutes 2022, section 144.0572, subdivision 1, is amended to read:
342.4 		Subdivision 1.Criminal history background check requirements. (a) Beginning 
342.5 	January 1, 2018, an applicant for initial licensure, temporary licensure, or relicensure after 
342.6 	a lapse in licensure as an audiologist or speech-language pathologist, a speech-language 
342.7 	pathology assistant, or an applicant for initial certification as a hearing instrument dispenser, 
342.8 	must submit to a criminal history records check of state data completed by the Bureau of 
342.9 	Criminal Apprehension (BCA) and a national criminal history records check, including a 
342.10 	search of the records of the Federal Bureau of Investigation (FBI).
342.11 	(b) Beginning January 1, 2020, an applicant for a renewal license or certificate as an 
342.12 	audiologist, speech-language pathologist, or hearing instrument dispenser who was licensed 
342.13 	or obtained a certificate before January 1, 2018, must submit to a criminal history records 
342.14 	check of state data completed by the BCA and a national criminal history records check, 
342.15 	including a search of the records of the FBI.
342.16 	(c) An applicant must submit to a background study under chapter 245C.
342.17 	(d) The criminal history records check must be structured so that any new crimes that 
342.18 	an applicant or licensee or certificate holder commits after the initial background check are 
342.19 	flagged in the BCA's or FBI's database and reported back to the commissioner of human 
342.20 	services.

342.21 	EFFECTIVE DATE. This section is effective July 1, 2025.

342.22 	Sec. 2. Minnesota Statutes 2022, section 148.511, is amended to read:
342.23 	148.511 SCOPE.
342.24 	Sections 148.511 to 148.5198 apply to persons who are applicants for licensure, who 
342.25 	use protected titles, who represent that they are licensed, or who engage in the practice of 
342.26 	speech-language pathology or audiology or practice as a speech-language pathology assistant. 
342.27 	Sections 148.511 to 148.5198 do not apply to school personnel licensed by the Professional 
342.28 	Educator Licensing and Standards Board and practicing within the scope of their school 
342.29 	license under Minnesota Rules, part 8710.6000, or the paraprofessionals who assist these 
342.30 	individuals.

342.31 	EFFECTIVE DATE. This section is effective July 1, 2025.

343.1 	Sec. 3. Minnesota Statutes 2022, section 148.512, subdivision 17a, is amended to read:
343.2 		Subd. 17a.Speech-language pathology assistant. "Speech-language pathology assistant" 
343.3 	means a person who meets the qualifications under section 148.5181 and provides 
343.4 	speech-language pathology services under the supervision of a licensed speech-language 
343.5 	pathologist in accordance with section 148.5192.

343.6 	EFFECTIVE DATE. This section is effective July 1, 2025.

343.7 	Sec. 4. Minnesota Statutes 2022, section 148.513, subdivision 1, is amended to read:
343.8 		Subdivision 1.Unlicensed practice prohibited. A person must not engage in the practice 
343.9 	of speech-language pathology or audiology or practice as a speech-language pathology 
343.10 	assistant unless the person is licensed as a speech-language pathologist or, an audiologist, 
343.11 	or a speech-language pathology assistant under sections 148.511 to 148.5198or is practicing 
343.12 	as a speech-language pathology assistant in accordance with section 148.5192. For purposes 
343.13 	of this subdivision, a speech-language pathology assistant's duties are limited to the duties 
343.14 	described in accordance with section 148.5192, subdivision 2.

343.15 	EFFECTIVE DATE. This section is effective July 1, 2025.

343.16 	Sec. 5. Minnesota Statutes 2022, section 148.513, subdivision 2, is amended to read:
343.17 		Subd. 2.Protected titles and restrictions on use; speech-language pathologists and 
343.18 	audiologists. (a) Notwithstanding paragraph (b) (c), the use of the following terms or initials 
343.19 	which represent the following terms, alone or in combination with any word or words, by 
343.20 	any person to form an occupational title is prohibited unless that person is licensed as a 
343.21 	speech-language pathologist or audiologist under sections 148.511 to 148.5198:
343.22 	(1) speech-language;
343.23 	(2) speech-language pathologist, S, SP, or SLP;
343.24 	(3) speech pathologist;
343.25 	(4) language pathologist;
343.26 	(5) audiologist, A, or AUD;
343.27 	(6) speech therapist;
343.28 	(7) speech clinician;
343.29 	(8) speech correctionist;
343.30 	(9) language therapist;
344.1 	(10) voice therapist;
344.2 	(11) voice pathologist;
344.3 	(12) logopedist;
344.4 	(13) communicologist;
344.5 	(14) aphasiologist;
344.6 	(15) phoniatrist;
344.7 	(16) audiometrist;
344.8 	(17) audioprosthologist;
344.9 	(18) hearing therapist;
344.10 	(19) hearing clinician; or
344.11 	(20) hearing aid audiologist.
344.12 	(b) Use of the term "Minnesota licensed" in conjunction with the titles protected under 
344.13 	this paragraph (a) by any person is prohibited unless that person is licensed as a 
344.14 	speech-language pathologist or audiologist under sections 148.511 to 148.5198.
344.15 	(b) (c) A speech-language pathology assistant practicing under section 148.5192 sections 
344.16 	148.511 to 148.5198 must not represent, indicate, or imply to the public that the assistant 
344.17 	is a licensed speech-language pathologist and shall only utilize one of the following titles: 
344.18 	"speech-language pathology assistant," "SLP assistant," or "SLP asst." the titles provided 
344.19 	in subdivision 2b.

344.20 	EFFECTIVE DATE. This section is effective July 1, 2025.

344.21 	Sec. 6. Minnesota Statutes 2022, section 148.513, is amended by adding a subdivision to 
344.22 	read:
344.23 		Subd. 2b.Protected titles and restrictions on use; speech-language pathology 
344.24 	assistant. (a) The use of the following terms or initials which represent the following terms, 
344.25 	alone or in combination with any word or words, by any person to form an occupational 
344.26 	title is prohibited unless that person is licensed under section 148.5181:
344.27 	(1) speech-language pathology assistant;
344.28 	(2) SLP assistant; or
344.29 	(3) SLP asst.
345.1 	(b) Use of the term "Minnesota licensed" in conjunction with the titles protected under 
345.2 	this subdivision by any person is prohibited unless that person is licensed under section 
345.3 	148.5181.
345.4 	(c) A speech-language pathology assistant practicing under section 148.5192 must not 
345.5 	represent, indicate, or imply to the public that the assistant is a licensed speech-language 
345.6 	pathologist and must only utilize the title provided in paragraph (a).

345.7 	EFFECTIVE DATE. This section is effective July 1, 2025.

345.8 	Sec. 7. Minnesota Statutes 2022, section 148.513, subdivision 3, is amended to read:
345.9 		Subd. 3.Exemption. (a) Nothing in sections 148.511 to 148.5198 prohibits the practice 
345.10 	of any profession or occupation licensed, certified, or registered by the state by any person 
345.11 	duly licensed, certified, or registered to practice the profession or occupation or to perform 
345.12 	any act that falls within the scope of practice of the profession or occupation.
345.13 	(b) Subdivision 1 does not apply to a student participating in supervised field work or 
345.14 	supervised course work that is necessary to meet the requirements of section sections
345.15 	148.515, subdivision 2or 3, or 148.5181, subdivision 2, if the person is designated by a 
345.16 	title which clearly indicates the person's status as a student trainee.
345.17 	(c) Subdivisions 1 and, 2, and 2a do not apply to a person visiting and then leaving the 
345.18 	state and using titles restricted under this section while in the state, if the titles are used no 
345.19 	more than 30 days in a calendar year as part of a professional activity that is limited in scope 
345.20 	and duration and is in association with an audiologist or speech-language pathologist licensed 
345.21 	under sections 148.511 to 148.5198.

345.22 	EFFECTIVE DATE. This section is effective July 1, 2025.

345.23 	Sec. 8. Minnesota Statutes 2022, section 148.514, subdivision 2, is amended to read:
345.24 		Subd. 2.General licensure qualifications. An applicant for licensure must possess the 
345.25 	qualifications required in one of the following clauses:
345.26 	(1) a person who applies for licensure and does not meet the requirements in clause (2) 
345.27 	or (3), must meet the requirements in section 148.515 or 148.5181, subdivision 2;
345.28 	(2) a person who applies for licensure and who has a current certificate of clinical 
345.29 	competence issued by the American Speech-Language-Hearing Association, or board 
345.30 	certification by the American Board of Audiology, must meet the requirements of section 
345.31 	148.516; or
346.1 	(3) a person who applies for licensure by reciprocity must meet the requirements under 
346.2 	section 148.517 or 148.5181, subdivision 3.

346.3 	EFFECTIVE DATE. This section is effective July 1, 2025.

346.4 	Sec. 9. Minnesota Statutes 2022, section 148.515, subdivision 1, is amended to read:
346.5 		Subdivision 1.Applicability. Except as provided in section 148.516 or 148.517, an 
346.6 	applicant for speech-language pathology or audiology must meet the requirements in this 
346.7 	section.

346.8 	EFFECTIVE DATE. This section is effective July 1, 2025.

346.9 	Sec. 10. Minnesota Statutes 2022, section 148.518, is amended to read:
346.10 	148.518 LICENSURE FOLLOWING LAPSE OF LICENSURE STATUS.
346.11 		Subdivision 1.Speech-language pathology or audiology lapse.  For An applicant whose 
346.12 	licensure status has lapsed, the applicant and who is applying for a speech-language pathology 
346.13 	or audiology license must:
346.14 	(1) apply for licensure renewal according to section 148.5191 and document compliance 
346.15 	with the continuing education requirements of section 148.5193 since the applicant's license 
346.16 	lapsed;
346.17 	(2) fulfill the requirements of section 148.517;
346.18 	(3) apply for renewal according to section 148.5191, provide evidence to the 
346.19 	commissioner that the applicant holds a current and unrestricted credential for the practice 
346.20 	of speech-language pathology from the Professional Educator Licensing and Standards 
346.21 	Board or for the practice of speech-language pathology or audiology in another jurisdiction 
346.22 	that has requirements equivalent to or higher than those in effect for Minnesota, and provide 
346.23 	evidence of compliance with Professional Educator Licensing and Standards Board or that 
346.24 	jurisdiction's continuing education requirements;
346.25 	(4) apply for renewal according to section 148.5191 and submit verified documentation 
346.26 	of successful completion of 160 hours of supervised practice approved by the commissioner. 
346.27 	To participate in a supervised practice, the applicant shall first apply and obtain temporary 
346.28 	licensing according to section 148.5161; or
346.29 	(5) apply for renewal according to section 148.5191 and provide documentation of 
346.30 	obtaining a qualifying score on the examination described in section 148.515, subdivision 
346.31 	4, within one year of the application date for license renewal.
347.1 		Subd. 2.Speech-language pathology assistant licensure lapse. An applicant applying 
347.2 	for speech-language pathology assistant licensure and whose licensure status has lapsed 
347.3 	must:
347.4 	(1) apply for renewal according to section 148.5191, and provide evidence to the 
347.5 	commissioner that the applicant has an associate's degree from a speech-language pathology 
347.6 	assistant program that is accredited by the Higher Learning Commission of the North Central 
347.7 	Association of Colleges;
347.8 	(2) apply for renewal according to section 148.5191 and provide evidence to the 
347.9 	commissioner that the applicant has a bachelor's degree in the discipline of communication 
347.10 	sciences or disorders and a speech-language pathology assistant certificate program, including 
347.11 	relevant coursework and supervised field experience according to section 148.5181; or
347.12 	(3) apply for licensure renewal according to section 148.5191 and document compliance 
347.13 	with the continuing education requirements of section 148.5193 since the applicant's license 
347.14 	lapsed.

347.15 	EFFECTIVE DATE. This section is effective July 1, 2025.

347.16 	Sec. 11. [148.5181] LICENSURE; SPEECH-LANGUAGE PATHOLOGY 
347.17 	ASSISTANTS.
347.18 		Subdivision 1.Applicability. Except as provided in subdivisions 3 and 4, an applicant 
347.19 	for licensure as a speech-language pathology assistant must meet the requirements of this 
347.20 	section.
347.21 		Subd. 2.Educational requirements. (a) To be eligible for speech-language pathology 
347.22 	assistant licensure, an applicant must submit to the commissioner a transcript from an 
347.23 	educational institution documenting satisfactory completion of either:
347.24 	(1) an associate's degree from a speech-language pathology assistant program that is 
347.25 	accredited by the Higher Learning Commission of the North Central Association of Colleges 
347.26 	or its equivalent as approved by the commissioner and that includes at least 100 hours of 
347.27 	supervised field work experience in speech-language pathology assisting; or
347.28 	(2) a bachelor's degree in the discipline of communication sciences or disorders and a 
347.29 	speech-language pathology assistant certificate program that includes:
347.30 	(i) coursework in an introduction to speech-language pathology assisting, adult 
347.31 	communication disorders and treatment, speech sound disorders, and language disorders at 
347.32 	a speech-language pathology assistant level; and
348.1 	(ii) at least 100 hours of supervised field work experience in speech-language pathology 
348.2 	assisting.
348.3 	(b) Within one month following expiration of a license, an applicant for licensure renewal 
348.4 	as a speech-language pathology assistant must provide, on a form provided by the 
348.5 	commissioner, evidence to the commissioner of a minimum of 20 contact hours of continuing 
348.6 	education obtained within the two years immediately preceding licensure expiration. A 
348.7 	minimum of 13 contact hours of continuing education must be directly related to the licensee's 
348.8 	area of licensure. Seven contact hours of continuing education may be in areas generally 
348.9 	related to the licensee's area of licensure. Licensees who are issued licenses for a period of 
348.10 	less than two years must prorate the number of contact hours required for licensure renewal 
348.11 	based on the number of months licensed during the biennial licensure period. Licensees 
348.12 	must receive contact hours for continuing education activities only for the biennial licensure 
348.13 	period in which the continuing education activity was performed.
348.14 		Subd. 3.Licensure by reciprocity. The commissioner shall issue a speech-language 
348.15 	pathology assistant license to a person who holds a current speech-language pathology 
348.16 	assistant license in another state if the following conditions are met:
348.17 	(1) payment of the commissioner's current fee for licensure; and
348.18 	(2) submission of evidence of licensure in good standing from another state that maintains 
348.19 	a system and standard of examinations for speech-language pathology assistants which 
348.20 	meets or exceeds the current requirements for licensure in Minnesota.

348.21 	EFFECTIVE DATE. This section is effective July 1, 2025.

348.22 	Sec. 12. Minnesota Statutes 2022, section 148.519, subdivision 1, is amended to read:
348.23 		Subdivision 1.Applications for licensure; speech-language pathologists and 
348.24 	audiologists. (a) An applicant for licensure as a speech-language pathologist or audiologist 
348.25 	must:
348.26 	(1) submit a completed application for licensure on forms provided by the commissioner. 
348.27 	The application must include the applicant's name, certification number under chapter 153A, 
348.28 	if applicable, business address and telephone number, or home address and telephone number 
348.29 	if the applicant practices speech-language pathology or audiology out of the home, and a 
348.30 	description of the applicant's education, training, and experience, including previous work 
348.31 	history for the five years immediately preceding the date of application. The commissioner 
348.32 	may ask the applicant to provide additional information necessary to clarify information 
348.33 	submitted in the application; and
349.1 	(2) submit documentation of the certificate of clinical competence issued by the American 
349.2 	Speech-Language-Hearing Association, board certification by the American Board of 
349.3 	Audiology, or satisfy the following requirements:
349.4 	(i) submit a transcript showing the completion of a master's or doctoral degree or its 
349.5 	equivalent meeting the requirements of section 148.515, subdivision 2;
349.6 	(ii) submit documentation of the required hours of supervised clinical training;
349.7 	(iii) submit documentation of the postgraduate clinical or doctoral clinical experience 
349.8 	meeting the requirements of section 148.515, subdivision 4; and
349.9 	(iv) submit documentation of receiving a qualifying score on an examination meeting 
349.10 	the requirements of section 148.515, subdivision 6.
349.11 	(b) In addition, an applicant must:
349.12 	(1) sign a statement that the information in the application is true and correct to the best 
349.13 	of the applicant's knowledge and belief;
349.14 	(2) submit with the application all fees required by section 148.5194;
349.15 	(3) sign a waiver authorizing the commissioner to obtain access to the applicant's records 
349.16 	in this or any other state in which the applicant has engaged in the practice of speech-language 
349.17 	pathology or audiology; and
349.18 	(4) consent to a fingerprint-based criminal history background check as required under 
349.19 	section 144.0572, pay all required fees, and cooperate with all requests for information. An 
349.20 	applicant must complete a new criminal history background check if more than one year 
349.21 	has elapsed since the applicant last applied for a license.

349.22 	EFFECTIVE DATE. This section is effective July 1, 2025.

349.23 	Sec. 13. Minnesota Statutes 2022, section 148.519, is amended by adding a subdivision 
349.24 	to read:
349.25 		Subd. 1a.Applications for licensure; speech-language pathology assistants. An 
349.26 	applicant for licensure as a speech-language pathology assistant must:
349.27 	(1) submit a completed application on forms provided by the commissioner. The 
349.28 	application must include the applicant's name, business address and telephone number, 
349.29 	home address and telephone number, and a description of the applicant's education, training, 
349.30 	and experience, including previous work history for the five years immediately preceding 
350.1 	the application date. The commissioner may ask the applicant to provide additional 
350.2 	information needed to clarify information submitted in the application;
350.3 	(2) submit a transcript showing the completion of the requirements set forth in section 
350.4 	148.5181;
350.5 	(3) submit a signed statement that the information in the application is true and correct 
350.6 	to the best of the applicant's knowledge and belief;
350.7 	(4) submit all fees required under section 148.5194;
350.8 	(5) submit a signed waiver authorizing the commissioner to obtain access to the applicant's 
350.9 	records in this or any other state in which the applicant has worked as a speech-language 
350.10 	pathology assistant; and
350.11 	(6) consent to a fingerprint-based criminal history background check as required under 
350.12 	section 144.0572, pay all required fees, and cooperate with all requests for information. An 
350.13 	applicant must complete a new criminal history background check if more than one year 
350.14 	has lapsed since the applicant last applied for a license.

350.15 	EFFECTIVE DATE. This section is effective July 1, 2025.

350.16 	Sec. 14. Minnesota Statutes 2022, section 148.5191, subdivision 1, is amended to read:
350.17 		Subdivision 1.Renewal requirements. To renew licensure, an applicant for license 
350.18 	renewal as a speech-language pathologist or audiologist must:
350.19 	(1) biennially complete a renewal application on a form provided by the commissioner 
350.20 	and submit the biennial renewal fee;
350.21 	(2) meet the continuing education requirements of section 148.5193 and submit evidence 
350.22 	of attending continuing education courses, as required in section 148.5193, subdivision 6; 
350.23 	and
350.24 	(3) submit additional information if requested by the commissioner to clarify information 
350.25 	presented in the renewal application. The information must be submitted within 30 days 
350.26 	after the commissioner's request.

350.27 	EFFECTIVE DATE. This section is effective July 1, 2025.

351.1 	Sec. 15. Minnesota Statutes 2022, section 148.5191, is amended by adding a subdivision 
351.2 	to read:
351.3 		Subd. 1a.Renewal requirements; speech-language pathology assistant. To renew 
351.4 	licensure, an applicant for license renewal as a speech-language pathology assistant must:
351.5 	(1) biennially complete a renewal application on a form provided by the commissioner 
351.6 	and submit the biennial renewal fee;
351.7 	(2) meet the continuing education requirements of section 148.5193, subdivision 1a, 
351.8 	and submit evidence of attending continuing education courses, as required in section 
351.9 	148.5193, subdivision 1a; and
351.10 	(3) submit additional information if requested by the commissioner to clarify information 
351.11 	presented in the renewal application. The information must be submitted within 30 days 
351.12 	after the commissioner's request.

351.13 	EFFECTIVE DATE. This section is effective July 1, 2025.

351.14 	Sec. 16. Minnesota Statutes 2022, section 148.5192, subdivision 1, is amended to read:
351.15 		Subdivision 1.Delegation requirements. A licensed speech-language pathologist may 
351.16 	delegate duties to a licensed speech-language pathology assistant in accordance with this 
351.17 	section following an initial introduction to a client with the speech-language pathologist 
351.18 	and speech-language pathology assistant present. Duties may only be delegated to an 
351.19 	individual who has documented with a transcript from an educational institution satisfactory 
351.20 	completion of either:
351.21 	(1) an associate degree from a speech-language pathology assistant program that is 
351.22 	accredited by the Higher Learning Commission of the North Central Association of Colleges 
351.23 	or its equivalent as approved by the commissioner; or
351.24 	(2) a bachelor's degree in the discipline of communication sciences or disorders with 
351.25 	additional transcript credit in the area of instruction in assistant-level service delivery 
351.26 	practices and completion of at least 100 hours of supervised field work experience as a 
351.27 	speech-language pathology assistant student.

351.28 	EFFECTIVE DATE. This section is effective July 1, 2025.

351.29 	Sec. 17. Minnesota Statutes 2022, section 148.5192, subdivision 2, is amended to read:
351.30 		Subd. 2.Delegated duties; prohibitions. (a) A speech-language pathology assistant 
351.31 	may perform only those duties delegated by a licensed speech-language pathologist and 
352.1 	must be limited to duties within the training and experience of the speech-language pathology 
352.2 	assistant.
352.3 	(b) Duties may include the following as delegated by the supervising speech-language 
352.4 	pathologist:
352.5 	(1) assist with speech language and hearing screenings;
352.6 	(2) implement documented treatment plans or protocols developed by the supervising 
352.7 	speech-language pathologist;
352.8 	(3) document client performance, including writing progress notes;
352.9 	(4) assist with assessments of clients;
352.10 	(5) assist with preparing materials and scheduling activities as directed;
352.11 	(6) perform checks and maintenance of equipment;
352.12 	(7) support the supervising speech-language pathologist in research projects, in-service 
352.13 	training, and public relations programs; and
352.14 	(8) collect data for quality improvement.
352.15 	(c) A speech-language pathology assistant may not:
352.16 	(1) perform standardized or nonstandardized diagnostic tests, perform formal or informal 
352.17 	evaluations, or interpret test results;
352.18 	(2) screen or diagnose clients for feeding or swallowing disorders, including using a 
352.19 	checklist or tabulating results of feeding or swallowing evaluations, or demonstrate 
352.20 	swallowing strategies or precautions to clients or the clients' families demonstrate strategies 
352.21 	included in the feeding and swallowing plan developed by the speech-language pathologist 
352.22 	or share such information with students, patients, clients, families, staff, and caregivers;
352.23 	(3) participate in parent conferences, case conferences, or any interdisciplinary team 
352.24 	without the presence of the supervising speech-language pathologist or other licensed 
352.25 	speech-language pathologist as authorized by the supervising speech-language pathologist
352.26 	meetings without approval from the speech-language pathologist or misrepresent themselves 
352.27 	as a speech-language pathologist at such a conference or meeting. The speech-language 
352.28 	pathologist and speech-language pathology assistant are required to meet prior to the parent 
352.29 	conferences, case conferences, or interdisciplinary team meetings to determine the 
352.30 	information to be shared;
353.1 	(4) provide client or family counseling or consult with the client or the family regarding 
353.2 	the client status or service;
353.3 	(5) write, develop, or modify a client's individualized treatment plan or individualized 
353.4 	education program;
353.5 	(6) select clients for service;
353.6 	(7) discharge clients from service;
353.7 	(8) disclose clinical or confidential information either orally or in writing to anyone 
353.8 	other than the supervising speech-language pathologist information to other team members 
353.9 	without permission from the supervising speech-language pathologist; or
353.10 	(9) make referrals for additional services.
353.11 	(d) A speech-language pathology assistant must not only sign any formal documents, 
353.12 	including treatment plans, education plans, reimbursement forms, or reports, when cosigned 
353.13 	by the supervising speech-language pathologist. The speech-language pathology assistant 
353.14 	must sign or initial all treatment notes written by the assistant, which must then also be 
353.15 	cosigned by the supervising speech-language pathologist.

353.16 	EFFECTIVE DATE. This section is effective July 1, 2025.

353.17 	Sec. 18. Minnesota Statutes 2022, section 148.5192, subdivision 3, is amended to read:
353.18 		Subd. 3.Supervision requirements. (a) A supervising speech-language pathologist 
353.19 	shall authorize and accept full responsibility for the performance, practice, and activity of 
353.20 	a speech-language pathology assistant. The amount and type of supervision required must 
353.21 	be based on the skills and experience of the speech-language pathology assistant. A minimum 
353.22 	of one hour every 30 days of consultative supervision time must be documented for each 
353.23 	speech-language pathology assistant.
353.24 	(b) A supervising speech-language pathologist must:
353.25 	(1) be licensed under sections 148.511 to 148.5198;
353.26 	(2) hold a certificate of clinical competence from the American Speech-Language-Hearing 
353.27 	Association or its equivalent as approved by the commissioner; and
353.28 	(3) have completed at least one ten hours of continuing education unit in supervision.
353.29 	(c) The supervision of a speech-language pathology assistant shall be maintained on the 
353.30 	following schedule:
354.1 	(1) for the first 90 workdays, within a 40-hour work week, 30 percent of the work 
354.2 	performed by the speech-language pathology assistant must be supervised and at least 20 
354.3 	percent of the work performed must be under direct supervision; and
354.4 	(2) for the work period after the initial 90-day period, within a 40-hour work week, 20 
354.5 	percent of the work performed must be supervised and at least ten percent of the work 
354.6 	performed must be under direct supervision Once every 60 days, the supervising 
354.7 	speech-language pathologist must treat or cotreat with the speech-language pathology 
354.8 	assistant each client on the speech-language pathology assistant's caseload.
354.9 	(d) For purposes of this section, "direct supervision" means on-site, in-view observation 
354.10 	and guidance by the supervising speech-language pathologist during the performance of a 
354.11 	delegated duty that occurs either on-site and in-view or through the use of real-time, two-way 
354.12 	interactive audio and visual communication. The supervision requirements described in this 
354.13 	section are minimum requirements. Additional supervision requirements may be imposed 
354.14 	at the discretion of the supervising speech-language pathologist.
354.15 	(e) A supervising speech-language pathologist must be available to communicate with 
354.16 	a speech-language pathology assistant at any time the assistant is in direct contact with a 
354.17 	client.
354.18 	(f) A supervising speech-language pathologist must document activities performed by 
354.19 	the assistant that are directly supervised by the supervising speech-language pathologist. 
354.20 	At a minimum, the documentation must include:
354.21 	(1) information regarding the quality of the speech-language pathology assistant's 
354.22 	performance of the delegated duties; and
354.23 	(2) verification that any delegated clinical activity was limited to duties authorized to 
354.24 	be performed by the speech-language pathology assistant under this section.
354.25 	(g) A supervising speech-language pathologist must review and cosign all informal 
354.26 	treatment notes signed or initialed by the speech-language pathology assistant.
354.27 	(h) A full-time, speech-language pathologist may supervise no more than one two
354.28 	full-time, speech-language pathology assistant assistants or the equivalent of one two
354.29 	full-time assistant assistants.

354.30 	EFFECTIVE DATE. This section is effective July 1, 2025.

355.1 	Sec. 19. Minnesota Statutes 2022, section 148.5193, subdivision 1, is amended to read:
355.2 		Subdivision 1.Number of contact hours required; speech-language pathologists 
355.3 	and audiologists. (a) An applicant for licensure renewal as a speech-language pathologist 
355.4 	or audiologist must meet the requirements for continuing education stipulated by the 
355.5 	American Speech-Language-Hearing Association or the American Board of Audiology, or 
355.6 	satisfy the requirements described in paragraphs (b) to (e).
355.7 	(b) Within one month following expiration of a license, an applicant for licensure renewal 
355.8 	as either a speech-language pathologist or an audiologist must provide evidence to the 
355.9 	commissioner of a minimum of 30 contact hours of continuing education obtained within 
355.10 	the two years immediately preceding licensure expiration. A minimum of 20 contact hours 
355.11 	of continuing education must be directly related to the licensee's area of licensure. Ten 
355.12 	contact hours of continuing education may be in areas generally related to the licensee's 
355.13 	area of licensure. Licensees who are issued licenses for a period of less than two years shall 
355.14 	prorate the number of contact hours required for licensure renewal based on the number of 
355.15 	months licensed during the biennial licensure period. Licensees shall receive contact hours 
355.16 	for continuing education activities only for the biennial licensure period in which the 
355.17 	continuing education activity was performed.
355.18 	(c) An applicant for licensure renewal as both a speech-language pathologist and an 
355.19 	audiologist must attest to and document completion of a minimum of 36 contact hours of 
355.20 	continuing education offered by a continuing education sponsor within the two years 
355.21 	immediately preceding licensure renewal. A minimum of 15 contact hours must be received 
355.22 	in the area of speech-language pathology and a minimum of 15 contact hours must be 
355.23 	received in the area of audiology. Six contact hours of continuing education may be in areas 
355.24 	generally related to the licensee's areas of licensure. Licensees who are issued licenses for 
355.25 	a period of less than two years shall prorate the number of contact hours required for licensure 
355.26 	renewal based on the number of months licensed during the biennial licensure period. 
355.27 	Licensees shall receive contact hours for continuing education activities only for the biennial 
355.28 	licensure period in which the continuing education activity was performed.
355.29 	(d) If the licensee is licensed by the Professional Educator Licensing and Standards 
355.30 	Board:
355.31 	(1) activities that are approved in the categories of Minnesota Rules, part 8710.7200, 
355.32 	subpart 3, items A and B, and that relate to speech-language pathology, shall be considered:
355.33 	(i) offered by a sponsor of continuing education; and
355.34 	(ii) directly related to speech-language pathology;
356.1 	(2) activities that are approved in the categories of Minnesota Rules, part 8710.7200, 
356.2 	subpart 3, shall be considered:
356.3 	(i) offered by a sponsor of continuing education; and
356.4 	(ii) generally related to speech-language pathology; and
356.5 	(3) one clock hour as defined in Minnesota Rules, part 8710.7200, subpart 1, is equivalent 
356.6 	to 1.0 contact hours of continuing education.
356.7 	(e) Contact hours may not be accumulated in advance and transferred to a future 
356.8 	continuing education period.

356.9 	EFFECTIVE DATE. This section is effective July 1, 2025.

356.10 	Sec. 20. Minnesota Statutes 2022, section 148.5193, is amended by adding a subdivision 
356.11 	to read:
356.12 		Subd. 1a.Continuing education; speech-language pathology assistants. An applicant 
356.13 	for licensure renewal as a speech-language pathology assistant must meet the requirements 
356.14 	for continuing education established by the American Speech-Language-Hearing Association 
356.15 	and submit evidence of attending continuing education courses. A licensee must receive 
356.16 	contact hours for continuing education activities only for the biennial licensure period in 
356.17 	which the continuing education activity was completed. Continuing education contact hours 
356.18 	obtained in one licensure period must not be transferred to a future licensure period.

356.19 	EFFECTIVE DATE. This section is effective July 1, 2025.

356.20 	Sec. 21. Minnesota Statutes 2022, section 148.5194, is amended by adding a subdivision 
356.21 	to read:
356.22 		Subd. 3b.Speech-language pathology assistant licensure fees. The fee for initial 
356.23 	licensure as a speech-language pathology assistant is $493. The fee for licensure renewal 
356.24 	for a speech-language pathology assistant is $493.

356.25 	EFFECTIVE DATE. This section is effective July 1, 2025.

356.26 	Sec. 22. Minnesota Statutes 2022, section 148.5194, subdivision 8, is amended to read:
356.27 		Subd. 8.Penalty fees. (a) The penalty fee for practicing speech-language pathology or 
356.28 	audiology, practicing as a speech-language pathology assistant, or using protected titles 
356.29 	without a current license after the credential has expired and before it is renewed is the 
357.1 	amount of the license renewal fee for any part of the first month, plus the license renewal 
357.2 	fee for any part of any subsequent month up to 36 months.
357.3 	(b) The penalty fee for applicants who engage in the unauthorized practice of 
357.4 	speech-language pathology or audiology, practice as a speech-language pathology assistant,
357.5 	or using use of protected titles before being issued a license is the amount of the license 
357.6 	application fee for any part of the first month, plus the license application fee for any part 
357.7 	of any subsequent month up to 36 months. This paragraph does not apply to applicants not 
357.8 	qualifying for a license who engage in the unauthorized practice of speech language 
357.9 	pathology or audiology or in the unauthorized practice as a speech-language pathology 
357.10 	assistant.
357.11 	(c) The penalty fee for practicing speech-language pathology or audiology and failing 
357.12 	to submit a continuing education report by the due date with the correct number or type of 
357.13 	hours in the correct time period is $100 plus $20 for each missing clock hour. The penalty 
357.14 	fee for a licensed speech-language pathology assistant who fails to submit a continuing 
357.15 	education report by the due date with the correct number or type of hours in the correct time 
357.16 	period is $100 plus $20 for each missing clock hour. "Missing" means not obtained between 
357.17 	the effective and expiration dates of the certificate, the one-month period following the 
357.18 	certificate expiration date, or the 30 days following notice of a penalty fee for failing to 
357.19 	report all continuing education hours. The licensee must obtain the missing number of 
357.20 	continuing education hours by the next reporting due date.
357.21 	(d) Civil penalties and discipline incurred by licensees prior to August 1, 2005, for 
357.22 	conduct described in paragraph (a), (b), or (c) shall be recorded as nondisciplinary penalty 
357.23 	fees. For conduct described in paragraph (a) or (b) occurring after August 1, 2005, and 
357.24 	exceeding six months, payment of a penalty fee does not preclude any disciplinary action 
357.25 	reasonably justified by the individual case.

357.26 	EFFECTIVE DATE. This section is effective July 1, 2025.

357.27 	Sec. 23. Minnesota Statutes 2023 Supplement, section 148.5195, subdivision 3, is amended 
357.28 	to read:
357.29 		Subd. 3.Grounds for disciplinary action by commissioner. The commissioner may 
357.30 	take any of the disciplinary actions listed in subdivision 4 on proof that the individual has:
357.31 	(1) intentionally submitted false or misleading information to the commissioner or the 
357.32 	advisory council;
358.1 	(2) failed, within 30 days, to provide information in response to a written request by the 
358.2 	commissioner or advisory council;
358.3 	(3) performed services of a speech-language pathologist or, audiologist, or 
358.4 	speech-language pathology assistant in an incompetent or negligent manner;
358.5 	(4) violated sections 148.511 to 148.5198;
358.6 	(5) failed to perform services with reasonable judgment, skill, or safety due to the use 
358.7 	of alcohol or drugs, or other physical or mental impairment;
358.8 	(6) violated any state or federal law, rule, or regulation, and the violation is a felony or 
358.9 	misdemeanor, an essential element of which is dishonesty, or which relates directly or 
358.10 	indirectly to the practice of speech-language pathology or audiology or to the practice of a 
358.11 	speech-language pathology assistant. Conviction for violating any state or federal law which 
358.12 	relates to speech-language pathology or, audiology, or to the practice of a speech-language 
358.13 	pathology assistant is necessarily considered to constitute a violation, except as provided 
358.14 	in chapter 364;
358.15 	(7) aided or abetted another person in violating any provision of sections 148.511 to 
358.16 	148.5198;
358.17 	(8) been or is being disciplined by another jurisdiction, if any of the grounds for the 
358.18 	discipline is the same or substantially equivalent to those under sections 148.511 to 148.5198;
358.19 	(9) not cooperated with the commissioner or advisory council in an investigation 
358.20 	conducted according to subdivision 1;
358.21 	(10) advertised in a manner that is false or misleading;
358.22 	(11) engaged in conduct likely to deceive, defraud, or harm the public; or demonstrated 
358.23 	a willful or careless disregard for the health, welfare, or safety of a client;
358.24 	(12) failed to disclose to the consumer any fee splitting or any promise to pay a portion 
358.25 	of a fee to any other professional other than a fee for services rendered by the other 
358.26 	professional to the client;
358.27 	(13) engaged in abusive or fraudulent billing practices, including violations of federal 
358.28 	Medicare and Medicaid laws, Food and Drug Administration regulations, or state medical 
358.29 	assistance laws;
358.30 	(14) obtained money, property, or services from a consumer through the use of undue 
358.31 	influence, high pressure sales tactics, harassment, duress, deception, or fraud;
358.32 	(15) performed services for a client who had no possibility of benefiting from the services;
359.1 	(16) failed to refer a client for medical evaluation or to other health care professionals 
359.2 	when appropriate or when a client indicated symptoms associated with diseases that could 
359.3 	be medically or surgically treated;
359.4 	(17) had the certification required by chapter 153A denied, suspended, or revoked 
359.5 	according to chapter 153A;
359.6 	(18) used the term doctor of audiology, doctor of speech-language pathology, AuD, or 
359.7 	SLPD without having obtained the degree from an institution accredited by the North Central 
359.8 	Association of Colleges and Secondary Schools, the Council on Academic Accreditation 
359.9 	in Audiology and Speech-Language Pathology, the United States Department of Education, 
359.10 	or an equivalent;
359.11 	(19) failed to comply with the requirements of section 148.5192 regarding supervision 
359.12 	of speech-language pathology assistants; or
359.13 	(20) if the individual is an audiologist or certified prescription hearing aid dispenser:
359.14 	(i) prescribed to a consumer or potential consumer the use of a prescription hearing aid, 
359.15 	unless the prescription from a physician, an audiologist, or a certified dispenser is in writing, 
359.16 	is based on an audiogram that is delivered to the consumer or potential consumer when the 
359.17 	prescription is made, and bears the following information in all capital letters of 12-point 
359.18 	or larger boldface type: "THIS PRESCRIPTION MAY BE FILLED BY, AND 
359.19 	PRESCRIPTION HEARING AIDS MAY BE PURCHASED FROM, THE LICENSED 
359.20 	AUDIOLOGIST OR CERTIFIED DISPENSER OF YOUR CHOICE";
359.21 	(ii) failed to give a copy of the audiogram, upon which the prescription is based, to the 
359.22 	consumer when the consumer requests a copy;
359.23 	(iii) failed to provide the consumer rights brochure required by section 148.5197, 
359.24 	subdivision 3;
359.25 	(iv) failed to comply with restrictions on sales of prescription hearing aids in sections 
359.26 	148.5197, subdivision 3, and 148.5198;
359.27 	(v) failed to return a consumer's prescription hearing aid used as a trade-in or for a 
359.28 	discount in the price of a new prescription hearing aid when requested by the consumer 
359.29 	upon cancellation of the purchase agreement;
359.30 	(vi) failed to follow Food and Drug Administration or Federal Trade Commission 
359.31 	regulations relating to dispensing prescription hearing aids;
360.1 	(vii) failed to dispense a prescription hearing aid in a competent manner or without 
360.2 	appropriate training;
360.3 	(viii) delegated prescription hearing aid dispensing authority to a person not authorized 
360.4 	to dispense a prescription hearing aid under this chapter or chapter 153A;
360.5 	(ix) failed to comply with the requirements of an employer or supervisor of a prescription 
360.6 	hearing aid dispenser trainee;
360.7 	(x) violated a state or federal court order or judgment, including a conciliation court 
360.8 	judgment, relating to the activities of the individual's prescription hearing aid dispensing; 
360.9 	or
360.10 	(xi) failed to include on the audiogram the practitioner's printed name, credential type, 
360.11 	credential number, signature, and date.

360.12 	EFFECTIVE DATE. This section is effective July 1, 2025.

360.13 	Sec. 24. Minnesota Statutes 2022, section 148.5195, subdivision 5, is amended to read:
360.14 		Subd. 5.Consequences of disciplinary actions. Upon the suspension or revocation of 
360.15 	licensure, the speech-language pathologist or audiologist, or speech-language pathology 
360.16 	assistant, shall cease to practice speech-language pathology or audiology, or practice as a 
360.17 	speech-language pathology assistant, to use titles protected under sections 148.511 to 
360.18 	148.5198, and to represent to the public that the speech-language pathologist or audiologist, 
360.19 	or speech-language pathology assistant, is licensed by the commissioner.

360.20 	EFFECTIVE DATE. This section is effective July 1, 2025.

360.21 	Sec. 25. Minnesota Statutes 2022, section 148.5195, subdivision 6, is amended to read:
360.22 		Subd. 6.Reinstatement requirements after disciplinary action. A speech-language 
360.23 	pathologist or audiologist, or speech-language pathology assistant, who has had licensure 
360.24 	suspended may petition on forms provided by the commissioner for reinstatement following 
360.25 	the period of suspension specified by the commissioner. The requirements of section 
360.26 	148.5191 for renewing licensure must be met before licensure may be reinstated.

360.27 	EFFECTIVE DATE. This section is effective July 1, 2025.

361.1 	Sec. 26. Minnesota Statutes 2023 Supplement, section 148.5196, subdivision 1, is amended 
361.2 	to read:
361.3 		Subdivision 1.Membership. The commissioner shall appoint 12 13 persons to a 
361.4 	Speech-Language Pathologist and Audiologist Advisory Council. The 12 13 persons must 
361.5 	include:
361.6 	(1) three public members, as defined in section 214.02. Two of the public members shall 
361.7 	be either persons receiving services of a speech-language pathologist or audiologist, or 
361.8 	family members of or caregivers to such persons, and at least one of the public members 
361.9 	shall be either a hearing aid user or an advocate of one;
361.10 	(2) three speech-language pathologists licensed under sections 148.511 to 148.5198, 
361.11 	one of whom is currently and has been, for the five years immediately preceding the 
361.12 	appointment, engaged in the practice of speech-language pathology in Minnesota and each 
361.13 	of whom is employed in a different employment setting including, but not limited to, private 
361.14 	practice, hospitals, rehabilitation settings, educational settings, and government agencies;
361.15 	(3) one speech-language pathologist licensed under sections 148.511 to 148.5198, who 
361.16 	is currently and has been, for the five years immediately preceding the appointment, 
361.17 	employed by a Minnesota public school district or a Minnesota public school district 
361.18 	consortium that is authorized by Minnesota Statutes and who is licensed in speech-language 
361.19 	pathology by the Professional Educator Licensing and Standards Board;
361.20 	(4) three audiologists licensed under sections 148.511 to 148.5198, two of whom are 
361.21 	currently and have been, for the five years immediately preceding the appointment, engaged 
361.22 	in the practice of audiology and the dispensing of prescription hearing aids in Minnesota 
361.23 	and each of whom is employed in a different employment setting including, but not limited 
361.24 	to, private practice, hospitals, rehabilitation settings, educational settings, industry, and 
361.25 	government agencies;
361.26 	(5) one nonaudiologist prescription hearing aid dispenser recommended by a professional 
361.27 	association representing prescription hearing aid dispensers; and
361.28 	(6) one physician licensed under chapter 147 and certified by the American Board of 
361.29 	Otolaryngology, Head and Neck Surgery; and
361.30 	(7) one speech-language pathology assistant licensed under sections 148.511 to 148.5198.

361.31 	EFFECTIVE DATE. This section is effective July 1, 2025.

362.1 	Sec. 27. Minnesota Statutes 2022, section 148.5196, subdivision 3, is amended to read:
362.2 		Subd. 3.Duties. The advisory council shall:
362.3 	(1) advise the commissioner regarding speech-language pathologist and audiologist 
362.4 	licensure standards;
362.5 	(2) advise the commissioner regarding the delegation of duties to, the licensure standards 
362.6 	for, and the training required for speech-language pathology assistants;
362.7 	(3) advise the commissioner on enforcement of sections 148.511 to 148.5198;
362.8 	(4) provide for distribution of information regarding speech-language pathologist and,
362.9 	audiologist, and speech-language pathology assistant licensure standards;
362.10 	(5) review applications and make recommendations to the commissioner on granting or 
362.11 	denying licensure or licensure renewal;
362.12 	(6) review reports of investigations relating to individuals and make recommendations 
362.13 	to the commissioner as to whether licensure should be denied or disciplinary action taken 
362.14 	against the individual;
362.15 	(7) advise the commissioner regarding approval of continuing education activities 
362.16 	provided by sponsors using the criteria in section 148.5193, subdivision 2; and
362.17 	(8) perform other duties authorized for advisory councils under chapter 214, or as directed 
362.18 	by the commissioner.

362.19 	EFFECTIVE DATE. This section is effective July 1, 2025.

362.20 	Sec. 28. Minnesota Statutes 2023 Supplement, section 245C.031, subdivision 4, is amended 
362.21 	to read:
362.22 		Subd. 4.Applicants, licensees, and other occupations regulated by the commissioner 
362.23 	of health. The commissioner shall conduct an alternative background study, including a 
362.24 	check of state data, and a national criminal history records check of the following individuals. 
362.25 	For studies under this section, the following persons shall complete a consent form and 
362.26 	criminal history disclosure form:
362.27 	(1) An applicant for initial licensure, temporary licensure, or relicensure after a lapse in 
362.28 	licensure as an audiologist or, speech-language pathologist, or speech-language pathologist 
362.29 	assistant, or an applicant for initial certification as a hearing instrument dispenser who must 
362.30 	submit to a background study under section 144.0572.
363.1 	(2) An applicant for a renewal license or certificate as an audiologist, speech-language 
363.2 	pathologist, or hearing instrument dispenser who was licensed or obtained a certificate 
363.3 	before January 1, 2018.

363.4 	EFFECTIVE DATE. This section is effective July 1, 2025.

363.5 	ARTICLE 26
363.6 	PHYSICIAN ASSISTANT LICENSURE COMPACT

363.7 	Section 1. [148.675] PHYSICIAN ASSISTANT LICENSURE COMPACT.
363.8 	The physician assistant (PA) licensure compact is enacted into law and entered into with 
363.9 	all other jurisdictions legally joining in it in the form substantially specified in this section.
363.10 	ARTICLE I
363.11 	TITLE
363.12 	This statute shall be known and cited as the physician assistant licensure compact.
363.13 	ARTICLE II
363.14 	DEFINITIONS
363.15 	As used in this compact, and except as otherwise provided, the following terms have 
363.16 	the meanings given them.
363.17 	(a) "Adverse action" means any administrative, civil, equitable, or criminal action 
363.18 	permitted by a state's laws that is imposed by a licensing board or other authority against a 
363.19 	PA license, license application, or compact privilege such as license denial, censure, 
363.20 	revocation, suspension, probation, monitoring of the licensee, or restriction on the licensee's 
363.21 	practice.
363.22 	(b) "Charter participating states" means the states that enacted the compact prior to the 
363.23 	commission convening.
363.24 	(c) "Compact privilege" means the authorization granted by a remote state to allow a 
363.25 	licensee from another participating state to practice as a PA to provide medical services or 
363.26 	other licensed activities to a patient located in the remote state under the remote state's laws 
363.27 	and regulations.
363.28 	(d) "Conviction" means a finding by a court that an individual is guilty of a felony or 
363.29 	misdemeanor offense through adjudication or entry of a plea of guilt or no contest to the 
363.30 	charge by the offender.
364.1 	(e) "Criminal background check" means the submission of fingerprints or other 
364.2 	biometric-based information for a license applicant for the purpose of obtaining that 
364.3 	applicant's criminal history record information, as defined in Code of Federal Regulations, 
364.4 	title 28, part 20, subpart 20.3, clause (d), from the state's criminal history record repository, 
364.5 	as defined in Code of Federal Regulations, title 28, part 20, subpart 20.3, clause (f).
364.6 	(f) "Data system" means the repository of information about licensees, including but not 
364.7 	limited to license status and adverse action, that is created and administered under the terms 
364.8 	of this compact.
364.9 	(g) "Executive committee" means a group of directors and ex officio individuals elected 
364.10 	or appointed pursuant to article VII, paragraph (f), clause (2).
364.11 	(h) "Impaired practitioner" means a PA whose practice is adversely affected by a 
364.12 	health-related condition that impacts the PA's ability to practice.
364.13 	(i) "Investigative information" means information, records, and documents received or 
364.14 	generated by a licensing board pursuant to an investigation.
364.15 	(j) "Jurisprudence requirement" means the assessment of an individual's knowledge of 
364.16 	the laws and rules governing the practice of a PA in a state.
364.17 	(k) "License" means current authorization by a state, other than authorization pursuant 
364.18 	to a compact privilege, for a PA to provide medical services, which would be unlawful 
364.19 	without current authorization.
364.20 	(l) "Licensee" means an individual who holds a license from a state to provide medical 
364.21 	services as a PA.
364.22 	(m) "Licensing board" means any state entity authorized to license and otherwise regulate 
364.23 	PAs.
364.24 	(n) "Medical services" means health care services provided for the diagnosis, prevention, 
364.25 	treatment, cure, or relief of a health condition, injury, or disease, as defined by a state's laws 
364.26 	and regulations.
364.27 	(o) "Model compact" means the model for the PA licensure compact on file with the 
364.28 	Council of State Governments or other entity as designated by the commission.
364.29 	(p) "Participating state" means a state that has enacted this compact.
364.30 	(q) "PA" means an individual who is licensed as a physician assistant in a state. For 
364.31 	purposes of this compact, any other title or status adopted by a state to replace the term 
364.32 	"physician assistant" shall be deemed synonymous with "physician assistant" and shall 
365.1 	confer the same rights and responsibilities to the licensee under the provisions of this compact 
365.2 	at the time of its enactment.
365.3 	(r) "PA Licensure Compact Commission" or "compact commission" or "commission" 
365.4 	means the national administrative body created pursuant to article VII, paragraph (a).
365.5 	(s) "Qualifying license" means an unrestricted license issued by a participating state to 
365.6 	provide medical services as a PA.
365.7 	(t) "Remote state" means a participating state where a licensee who is not licensed as a 
365.8 	PA is exercising or seeking to exercise the compact privilege.
365.9 	(u) "Rule" means a regulation promulgated by an entity that has the force and effect of 
365.10 	law.
365.11 	(v) "Significant investigative information" means investigative information that a 
365.12 	licensing board, after an inquiry or investigation that includes notification and an opportunity 
365.13 	for the PA to respond if required by state law, has reason to believe is not groundless and, 
365.14 	if proven true, would indicate more than a minor infraction.
365.15 	(w) "State" means any state, commonwealth, district, or territory of the United States.
365.16 	ARTICLE III
365.17 	STATE PARTICIPATION IN THE COMPACT
365.18 	(a) To participate in this compact, a participating state must:
365.19 	(1) license PAs;
365.20 	(2) participate in the commission's data system;
365.21 	(3) have a mechanism in place for receiving and investigating complaints against licensees 
365.22 	and license applicants;
365.23 	(4) notify the commission, in compliance with the terms of this compact and commission 
365.24 	rules, of any adverse action against the licensee or license applicant and the existence of 
365.25 	significant investigative information regarding a licensee or license applicant;
365.26 	(5) fully implement a criminal background check requirement, within a time frame 
365.27 	established by commission rule, by its licensing board receiving the results of a criminal 
365.28 	background check and reporting to the commission whether the license applicant has been 
365.29 	granted a license;
365.30 	(6) fully comply with the rules of the compact commission;
366.1 	(7) utilize a recognized national examination such as the National Commission on 
366.2 	Certification of Physician Assistants (NCCPA) physician assistant national certifying 
366.3 	examination as a requirement for PA licensure; and
366.4 	(8) grant the compact privilege to a holder of a qualifying license in a participating state.
366.5 	(b) Nothing in this compact prohibits a participating state from charging a fee for granting 
366.6 	the compact privilege.
366.7 	ARTICLE IV
366.8 	COMPACT PRIVILEGE
366.9 	(a) To exercise the compact privilege, a licensee must:
366.10 	(1) have graduated from a PA program accredited by the Accreditation Review 
366.11 	Commission on Education for the Physician Assistant, Inc. or other programs authorized 
366.12 	by commission rule;
366.13 	(2) hold current NCCPA certification;
366.14 	(3) have no felony or misdemeanor convictions;
366.15 	(4) have never had a controlled substance license, permit, or registration suspended or 
366.16 	revoked by a state or by the United States Drug Enforcement Administration;
366.17 	(5) have a unique identifier as determined by commission rule;
366.18 	(6) hold a qualifying license;
366.19 	(7) have had no revocation of a license or limitation or restriction due to an adverse 
366.20 	action on any currently held license;
366.21 	(8) if a licensee has had a limitation or restriction on a license or compact privilege due 
366.22 	to an adverse action, two years must have elapsed from the date on which the license or 
366.23 	compact privilege is no longer limited or restricted due to the adverse action;
366.24 	(9) if a compact privilege has been revoked or is limited or restricted in a participating 
366.25 	state for conduct that would not be a basis for disciplinary action in a participating state in 
366.26 	which the licensee is practicing or applying to practice under a compact privilege, that 
366.27 	participating state shall have the discretion not to consider such action as an adverse action 
366.28 	requiring the denial or removal of a compact privilege in that state;
366.29 	(10) notify the compact commission that the licensee is seeking the compact privilege 
366.30 	in a remote state;
367.1 	(11) meet any jurisprudence requirement of a remote state in which the licensee is seeking 
367.2 	to practice under the compact privilege and pay any fees applicable to satisfying the 
367.3 	jurisprudence requirement; and
367.4 	(12) report to the commission any adverse action taken by any nonparticipating state 
367.5 	within 30 days after the date the action is taken.
367.6 	(b) The compact privilege is valid until the expiration or revocation of the qualifying 
367.7 	license unless terminated pursuant to an adverse action. The licensee must also comply with 
367.8 	all of the requirements of paragraph (a) to maintain the compact privilege in a remote state. 
367.9 	If the participating state takes adverse action against a qualifying license, the licensee shall 
367.10 	lose the compact privilege in any remote state in which the licensee has a compact privilege 
367.11 	until all of the following occur:
367.12 	(1) the license is no longer limited or restricted; and
367.13 	(2) two years have elapsed from the date on which the license is no longer limited or 
367.14 	restricted due to the adverse action.
367.15 	(c) Once a restricted or limited license satisfies the requirements of paragraph (b), the 
367.16 	licensee must meet the requirements of paragraph (a) to obtain a compact privilege in any 
367.17 	remote state.
367.18 	(d) For each remote state in which a PA seeks authority to prescribe controlled substances, 
367.19 	the PA shall satisfy all requirements imposed by such state in granting or renewing such 
367.20 	authority.
367.21 	ARTICLE V
367.22 	DESIGNATION OF THE STATE FROM WHICH LICENSEE IS APPLYING FOR 
367.23 	COMPACT PRIVILEGE
367.24 	Upon a licensee's application for a compact privilege, the licensee must identify to the 
367.25 	commission the participating state from which the licensee is applying, in accordance with 
367.26 	applicable rules adopted by the commission, and subject to the following requirements:
367.27 	(1) the licensee must provide the commission with the address of the licensee's primary 
367.28 	residence and thereafter shall immediately report to the commission any change in the 
367.29 	address of the licensee's primary residence; and
367.30 	(2) the licensee must consent to accept service of process by mail at the licensee's primary 
367.31 	residence on file with the commission with respect to any action brought against the licensee 
368.1 	by the commission or a participating state, including a subpoena, with respect to any action 
368.2 	brought or investigation conducted by the commission or a participating state.
368.3 	ARTICLE VI
368.4 	ADVERSE ACTIONS
368.5 	(a) A participating state in which a licensee is licensed shall have exclusive power to 
368.6 	impose adverse action against the qualifying license issued by that participating state.
368.7 	(b) In addition to the other powers conferred by state law, a remote state shall have the 
368.8 	authority, in accordance with existing state due process law, to do the following:
368.9 	(1) take adverse action against a PA's compact privilege in the state to remove a licensee's 
368.10 	compact privilege or take other action necessary under applicable law to protect the health 
368.11 	and safety of its citizens; and
368.12 	(2) issue subpoenas for both hearings and investigations that require the attendance and 
368.13 	testimony of witnesses and the production of evidence. Subpoenas issued by a licensing 
368.14 	board in a participating state for the attendance and testimony of witnesses or the production 
368.15 	of evidence from another participating state shall be enforced in the latter state by any court 
368.16 	of competent jurisdiction, according to the practice and procedure of that court applicable 
368.17 	to subpoenas issued in proceedings pending before it. The issuing authority shall pay any 
368.18 	witness fees, travel expenses, mileage, and other fees required by the service statutes of the 
368.19 	state in which the witnesses or evidence are located.
368.20 	(c) Notwithstanding paragraph (b), clause (1), subpoenas may not be issued by a 
368.21 	participating state to gather evidence of conduct in another state that is lawful in that other 
368.22 	state, for the purpose of taking adverse action against a licensee's compact privilege or 
368.23 	application for a compact privilege in that participating state.
368.24 	(d) Nothing in this compact authorizes a participating state to impose discipline against 
368.25 	a PA's compact privilege or to deny an application for a compact privilege in that participating 
368.26 	state for the individual's otherwise lawful practice in another state.
368.27 	(e) For purposes of taking adverse action, the participating state which issued the 
368.28 	qualifying license shall give the same priority and effect to reported conduct received from 
368.29 	any other participating state as it would if the conduct had occurred within the participating 
368.30 	state which issued the qualifying license. In so doing, that participating state shall apply its 
368.31 	own state laws to determine appropriate action.
369.1 	(f) A participating state, if otherwise permitted by state law, may recover from the 
369.2 	affected PA the costs of investigations and disposition of cases resulting from any adverse 
369.3 	action taken against that PA.
369.4 	(g) A participating state may take adverse action based on the factual findings of a remote 
369.5 	state, provided that the participating state follows its own procedures for taking the adverse 
369.6 	action.
369.7 	(h) Joint investigations:
369.8 	(1) in addition to the authority granted to a participating state by its respective state PA 
369.9 	laws and regulations or other applicable state law, any participating state may participate 
369.10 	with other participating states in joint investigations of licensees; and
369.11 	(2) participating states shall share any investigative, litigation, or compliance materials 
369.12 	in furtherance of any joint or individual investigation initiated under this compact.
369.13 	(i) If an adverse action is taken against a PA's qualifying license, the PA's compact 
369.14 	privilege in all remote states shall be deactivated until two years have elapsed after all 
369.15 	restrictions have been removed from the state license. All disciplinary orders by the 
369.16 	participating state which issued the qualifying license that impose adverse action against a 
369.17 	PA's license shall include a statement that the PA's compact privilege is deactivated in all 
369.18 	participating states during the pendency of the order.
369.19 	(j) If any participating state takes adverse action, it promptly shall notify the administrator 
369.20 	of the data system.
369.21 	ARTICLE VII
369.22 	ESTABLISHMENT OF THE PA LICENSURE COMPACT COMMISSION
369.23 	(a) The participating states hereby create and establish a joint government agency and 
369.24 	national administrative body known as the PA Licensure Compact Commission. The 
369.25 	commission is an instrumentality of the compact states acting jointly, and is not an 
369.26 	instrumentality of any one state. The commission shall come into existence on or after the 
369.27 	effective date of the compact as set forth in article XI, paragraph (a).
369.28 	(b) Membership, voting, and meetings:
369.29 	(1) each participating state shall have and be limited to one delegate selected by that 
369.30 	participating state's licensing board or, if the state has more than one licensing board, selected 
369.31 	collectively by the participating state's licensing boards;
369.32 	(2) the delegate shall be:
370.1 	(i) a current PA, physician, or public member of a licensing board or PA council or 
370.2 	committee; or
370.3 	(ii) an administrator of a licensing board;
370.4 	(3) any delegate may be removed or suspended from office as provided by the laws of 
370.5 	the state from which the delegate is appointed;
370.6 	(4) the participating state board shall fill any vacancy occurring in the commission within 
370.7 	60 days;
370.8 	(5) each delegate shall be entitled to one vote on all matters voted on by the commission 
370.9 	and shall otherwise have an opportunity to participate in the business and affairs of the 
370.10 	commission;
370.11 	(6) a delegate shall vote in person or by such other means as provided in the bylaws. 
370.12 	The bylaws may provide for delegates' participation in meetings by telecommunications, 
370.13 	video conference, or other means of communication;
370.14 	(7) the commission shall meet at least once during each calendar year. Additional 
370.15 	meetings shall be held as set forth in this compact and the bylaws; and
370.16 	(8) the commission shall establish by rule a term of office for delegates.
370.17 	(c) The commission shall have the following powers and duties:
370.18 	(1) establish a code of ethics for the commission;
370.19 	(2) establish the fiscal year of the commission;
370.20 	(3) establish fees;
370.21 	(4) establish bylaws;
370.22 	(5) maintain its financial records in accordance with the bylaws;
370.23 	(6) meet and take such actions as are consistent with the provisions of this compact and 
370.24 	the bylaws;
370.25 	(7) promulgate rules to facilitate and coordinate implementation and administration of 
370.26 	this compact. The rules shall have the force and effect of law and shall be binding in all 
370.27 	participating states;
370.28 	(8) bring and prosecute legal proceedings or actions in the name of the commission, 
370.29 	provided that the standing of any state licensing board to sue or be sued under applicable 
370.30 	law shall not be affected;
371.1 	(9) purchase and maintain insurance and bonds;
371.2 	(10) borrow, accept, or contract for services of personnel, including but not limited to 
371.3 	employees of a participating state;
371.4 	(11) hire employees and engage contractors, elect or appoint officers, fix compensation, 
371.5 	define duties, grant such individuals appropriate authority to carry out the purposes of this 
371.6 	compact, and establish the commission's personnel policies and programs relating to conflicts 
371.7 	of interest, qualifications of personnel, and other related personnel matters;
371.8 	(12) accept any and all appropriate donations and grants of money, equipment, supplies, 
371.9 	materials, and services, and receive, utilize, and dispose of the same, provided that at all 
371.10 	times the commission shall avoid any appearance of impropriety or conflict of interest;
371.11 	(13) lease, purchase, accept appropriate gifts or donations of, or otherwise to own, hold, 
371.12 	improve, or use, any property, real, personal, or mixed, provided that at all times the 
371.13 	commission shall avoid any appearance of impropriety;
371.14 	(14) sell, convey, mortgage, pledge, lease, exchange, abandon, or otherwise dispose of 
371.15 	any property real, personal, or mixed;
371.16 	(15) establish a budget and make expenditures;
371.17 	(16) borrow money;
371.18 	(17) appoint committees, including standing committees composed of members, state 
371.19 	regulators, state legislators or their representatives, and consumer representatives, and such 
371.20 	other interested persons as may be designated in this compact and the bylaws;
371.21 	(18) provide and receive information from, and cooperate with, law enforcement agencies;
371.22 	(19) elect a chair, vice chair, secretary, and treasurer and such other officers of the 
371.23 	commission as provided in the commission's bylaws;
371.24 	(20) reserve for itself, in addition to those reserved exclusively to the commission under 
371.25 	the compact, powers that the executive committee may not exercise;
371.26 	(21) approve or disapprove a state's participation in the compact based upon its 
371.27 	determination as to whether the state's compact legislation departs in a material manner 
371.28 	from the model compact language;
371.29 	(22) prepare and provide to the participating states an annual report; and
371.30 	(23) perform such other functions as may be necessary or appropriate to achieve the 
371.31 	purposes of this compact consistent with the state regulation of PA licensure and practice.
372.1 	(d) Meetings of the commission:
372.2 	(1) all meetings of the commission that are not closed pursuant to this paragraph shall 
372.3 	be open to the public. Notice of public meetings shall be posted on the commission's website 
372.4 	at least 30 days prior to the public meeting;
372.5 	(2) notwithstanding clause (1), the commission may convene a public meeting by 
372.6 	providing at least 24 hours' prior notice on the commission's website, and any other means 
372.7 	as provided in the commission's rules, for any of the reasons it may dispense with notice of 
372.8 	proposed rulemaking under article IX, paragraph (l);
372.9 	(3) the commission may convene in a closed, nonpublic meeting or nonpublic part of a 
372.10 	public meeting to receive legal advice or to discuss:
372.11 	(i) noncompliance of a participating state with its obligations under this compact;
372.12 	(ii) the employment, compensation, discipline, or other matters, practices, or procedures 
372.13 	related to specific employees, or other matters related to the commission's internal personnel 
372.14 	practices and procedures;
372.15 	(iii) current, threatened, or reasonably anticipated litigation;
372.16 	(iv) negotiation of contracts for the purchase, lease, or sale of goods, services, or real 
372.17 	estate;
372.18 	(v) accusing any person of a crime or formally censuring any person;
372.19 	(vi) disclosure of trade secrets or commercial or financial information that is privileged 
372.20 	or confidential;
372.21 	(vii) disclosure of information of a personal nature where disclosure would constitute a 
372.22 	clearly unwarranted invasion of personal privacy;
372.23 	(viii) disclosure of investigative records compiled for law enforcement purposes;
372.24 	(ix) disclosure of information related to any investigative reports prepared by or on 
372.25 	behalf of, or for use of, the commission or other committee charged with responsibility of 
372.26 	investigation or determination of compliance issues pursuant to this compact;
372.27 	(x) legal advice; or
372.28 	(xi) matters specifically exempted from disclosure by federal or participating states' 
372.29 	statutes;
373.1 	(4) if a meeting, or portion of a meeting, is closed pursuant to clause (3), the chair of 
373.2 	the meeting or the chair's designee shall certify that the meeting or portion of the meeting 
373.3 	may be closed and shall reference each relevant exempting provision; and
373.4 	(5) the commission shall keep minutes that fully and clearly describe all matters discussed 
373.5 	in a meeting and shall provide a full and accurate summary of actions taken, including a 
373.6 	description of the views expressed. All documents considered in connection with an action 
373.7 	shall be identified in such minutes. All minutes and documents of a closed meeting shall 
373.8 	remain under seal, subject to release by a majority vote of the commission or order of a 
373.9 	court of competent jurisdiction.
373.10 	(e) Financing of the commission:
373.11 	(1) the commission shall pay, or provide for the payment of, the reasonable expenses of 
373.12 	its establishment, organization, and ongoing activities;
373.13 	(2) the commission may accept any and all appropriate revenue sources, donations, and 
373.14 	grants of money, equipment, supplies, materials, and services;
373.15 	(3) the commission may levy on and collect an annual assessment from each participating 
373.16 	state and may impose compact privilege fees on licensees of participating states to whom 
373.17 	a compact privilege is granted, to cover the cost of the operations and activities of the 
373.18 	commission and its staff. The cost of the operations and activities of the commission and 
373.19 	its staff must be in a total amount sufficient to cover its annual budget as approved by the 
373.20 	commission each year for which revenue is not provided by other sources. The aggregate 
373.21 	annual assessment amount levied on participating states shall be allocated based upon a 
373.22 	formula to be determined by commission rule:
373.23 	(i) a compact privilege expires when the licensee's qualifying license in the participating 
373.24 	state from which the licensee applied for the compact privilege expires; and
373.25 	(ii) if the licensee terminates the qualifying license through which the licensee applied 
373.26 	for the compact privilege before its scheduled expiration, and the licensee has a qualifying 
373.27 	license in another participating state, the licensee shall inform the commission that it is 
373.28 	changing the participating state through which it applies for a compact privilege to the other 
373.29 	participating state and pay to the commission any compact privilege fee required by 
373.30 	commission rule;
373.31 	(4) the commission shall not incur obligations of any kind prior to securing the funds 
373.32 	adequate to meet the same, nor shall the commission pledge the credit of any of the 
373.33 	participating states, except by and with the authority of the participating state; and
374.1 	(5) the commission shall keep accurate accounts of all receipts and disbursements. The 
374.2 	receipts and disbursements of the commission shall be subject to the financial review and 
374.3 	accounting procedures established under its bylaws. All receipts and disbursements of funds 
374.4 	handled by the commission shall be subject to an annual financial review by a certified or 
374.5 	licensed public accountant, and the report of the financial review shall be included in and 
374.6 	become part of the annual report of the commission.
374.7 	(f) The executive committee:
374.8 	(1) the executive committee shall have the power to act on behalf of the commission 
374.9 	according to the terms of this compact and commission rules;
374.10 	(2) the executive committee shall be composed of nine members as follows:
374.11 	(i) seven voting members who are elected by the commission from the current 
374.12 	membership of the commission;
374.13 	(ii) one ex officio, nonvoting member from a recognized national PA professional 
374.14 	association; and
374.15 	(iii) one ex officio, nonvoting member from a recognized national PA certification 
374.16 	organization;
374.17 	(3) the ex officio members will be selected by their respective organizations;
374.18 	(4) the commission may remove any member of the executive committee as provided 
374.19 	in its bylaws;
374.20 	(5) the executive committee shall meet at least annually;
374.21 	(6) the executive committee shall have the following duties and responsibilities:
374.22 	(i) recommend to the entire commission changes to the commission's rules or bylaws, 
374.23 	changes to this compact legislation, fees paid by compact participating states such as annual 
374.24 	dues, and any commission compact fee charged to licensees for the compact privilege;
374.25 	(ii) ensure compact administration services are appropriately provided, contractual or 
374.26 	otherwise;
374.27 	(iii) prepare and recommend the budget;
374.28 	(iv) maintain financial records on behalf of the commission;
374.29 	(v) monitor compact compliance of participating states and provide compliance reports 
374.30 	to the commission;
374.31 	(vi) establish additional committees as necessary;
375.1 	(vii) exercise the powers and duties of the commission during the interim between 
375.2 	commission meetings, except for issuing proposed rulemaking or adopting commission 
375.3 	rules or bylaws, or exercising any other powers and duties exclusively reserved to the 
375.4 	commission by the commission's rules; and
375.5 	(viii) perform other duties as provided in commission's rules or bylaws;
375.6 	(7) all meetings of the executive committee at which it votes or plans to vote on matters 
375.7 	in exercising the powers and duties of the commission shall be open to the public, and public 
375.8 	notice of such meetings shall be given as public meetings of the commission are given; and
375.9 	(8) the executive committee may convene in a closed, nonpublic meeting for the same 
375.10 	reasons that the commission may convene in a nonpublic meeting as set forth in paragraph 
375.11 	(d), clause (3), and shall announce the closed meeting as the commission is required to 
375.12 	under paragraph (d), clause (4), and keep minutes of the closed meeting as the commission 
375.13 	is required to under paragraph (d), clause (5).
375.14 	(g) Qualified immunity, defense, and indemnification:
375.15 	(1) the members, officers, executive director, employees, and representatives of the 
375.16 	commission shall be immune from suit and liability, both personally and in their official 
375.17 	capacity, for any claim for damage to or loss of property or personal injury or other civil 
375.18 	liability caused by or arising out of any actual or alleged act, error, or omission that occurred, 
375.19 	or that the person against whom the claim is made had a reasonable basis for believing 
375.20 	occurred, within the scope of commission employment, duties, or responsibilities, provided 
375.21 	that nothing in this paragraph shall be construed to protect any such person from suit or 
375.22 	liability for any damage, loss, injury, or liability caused by the intentional or willful or 
375.23 	wanton misconduct of that person. The procurement of insurance of any type by the 
375.24 	commission shall not in any way compromise or limit the immunity granted hereunder;
375.25 	(2) the commission shall defend any member, officer, executive director, employee, or 
375.26 	representative of the commission in any civil action seeking to impose liability arising out 
375.27 	of any actual or alleged act, error, or omission that occurred within the scope of commission 
375.28 	employment, duties, or responsibilities, or that the person against whom the claim is made 
375.29 	had a reasonable basis for believing occurred within the scope of commission employment, 
375.30 	duties, or responsibilities, provided that nothing herein shall be construed to prohibit that 
375.31 	person from retaining their own counsel at their own expense, and provided further that the 
375.32 	actual or alleged act, error, or omission did not result from that person's intentional or willful 
375.33 	or wanton misconduct;
376.1 	(3) the commission shall indemnify and hold harmless any member, officer, executive 
376.2 	director, employee, or representative of the commission for the amount of any settlement 
376.3 	or judgment obtained against that person arising out of any actual or alleged act, error, or 
376.4 	omission that occurred within the scope of commission employment, duties, or 
376.5 	responsibilities, or that such person had a reasonable basis for believing occurred within 
376.6 	the scope of commission employment, duties, or responsibilities, provided that the actual 
376.7 	or alleged act, error, or omission did not result from the intentional or willful or wanton 
376.8 	misconduct of that person;
376.9 	(4) except as provided under paragraph (i), venue is proper and judicial proceedings by 
376.10 	or against the commission shall be brought solely and exclusively in a court of competent 
376.11 	jurisdiction where the principal office of the commission is located. The commission may 
376.12 	waive venue and jurisdictional defenses in any proceedings as authorized by commission 
376.13 	rules;
376.14 	(5) nothing herein shall be construed as a limitation on the liability of any licensee for 
376.15 	professional malpractice or misconduct, which shall be governed solely by any other 
376.16 	applicable state laws;
376.17 	(6) nothing herein shall be construed to designate the venue or jurisdiction to bring 
376.18 	actions for alleged acts of malpractice, professional misconduct, negligence, or other such 
376.19 	civil action pertaining to the practice of a PA. All such matters shall be determined 
376.20 	exclusively by state law other than this compact;
376.21 	(7) nothing in this compact shall be interpreted to waive or otherwise abrogate a 
376.22 	participating state's state action immunity or state action affirmative defense with respect 
376.23 	to antitrust claims under the federal Sherman Act, Clayton Act, or any other state or federal 
376.24 	antitrust or anticompetitive law or regulation; and
376.25 	(8) nothing in this compact shall be construed to be a waiver of sovereign immunity by 
376.26 	the participating states or by the commission.
376.27 	(h) Notwithstanding paragraph (g), clause (1), the liability of the executive director, 
376.28 	employees, or representatives of the interstate commission, acting within the scope of their 
376.29 	employment or duties, may not exceed the limits of liability set forth under the constitution 
376.30 	and laws of this state for state officials, employees, and agents. This paragraph expressly 
376.31 	incorporates  section 3.736, and neither expands nor limits the rights and remedies provided 
376.32 	under that statute.
376.33 	(i) Except for a claim alleging a violation of this compact, a claim against the commission, 
376.34 	its executive director, employees, or representatives alleging a violation of the constitution 
377.1 	and laws of this state may be brought in any county where the plaintiff resides. Nothing in 
377.2 	this paragraph creates a private right of action.
377.3 	ARTICLE VIII
377.4 	DATA SYSTEM
377.5 	(a) The commission shall provide for the development, maintenance, and utilization of 
377.6 	a coordinated database and reporting system containing licensure and adverse action 
377.7 	information, and the reporting of significant investigative information on all licensed PAs 
377.8 	and applicants denied a license in participating states.
377.9 	(b) Notwithstanding any other state law to the contrary, a participating state shall submit 
377.10 	a uniform data set to the data system on all PAs to whom this compact is applicable, using 
377.11 	a unique identifier, as required by the rules of the commission, including:
377.12 	(1) identifying information;
377.13 	(2) licensure data;
377.14 	(3) adverse actions against a license or compact privilege;
377.15 	(4) any denial of application for licensure and the reason or reasons for the denial, 
377.16 	excluding the reporting of any criminal history record information where prohibited by law;
377.17 	(5) the existence of significant investigative information; and
377.18 	(6) other information that may facilitate the administration of this compact, as determined 
377.19 	by the rules of the commission.
377.20 	(c) Significant investigative information pertaining to a licensee in any participating 
377.21 	state shall only be available to other participating states.
377.22 	(d) The commission shall promptly notify all participating states of any reports it receives 
377.23 	of any adverse action taken against a licensee or an individual applying for a license. This 
377.24 	adverse action information shall be available to any other participating state.
377.25 	(e) Participating states contributing information to the data system may, in accordance 
377.26 	with state or federal law, designate information that may not be shared with the public 
377.27 	without the express permission of the contributing state. Notwithstanding any such 
377.28 	designation, such information shall be reported to the commission through the data system.
377.29 	(f) Any information submitted to the data system that is subsequently expunged by 
377.30 	federal law or the laws of the participating state contributing the information shall be removed 
377.31 	from the data system upon reporting of such by the participating state to the commission.
378.1 	(g) The records and information provided to a participating state pursuant to this compact 
378.2 	or through the data system, when certified by the commission or an agent thereof, shall 
378.3 	constitute the authenticated business records of the commission and shall be entitled to any 
378.4 	associated hearsay exception in any relevant judicial, quasi-judicial, or administrative 
378.5 	proceedings in a participating state.
378.6 	ARTICLE IX
378.7 	RULEMAKING
378.8 	(a) The commission shall exercise its rulemaking powers pursuant to the criteria set 
378.9 	forth in this article and the rules adopted thereunder. Commission rules shall become binding 
378.10 	as of the date specified by the commission for each rule.
378.11 	(b) The commission shall promulgate reasonable rules in order to effectively and 
378.12 	efficiently implement and administer this compact and achieve its purposes. A commission 
378.13 	rule shall be invalid and have no force or effect only if a court of competent jurisdiction 
378.14 	holds that the rule is invalid because the commission exercised its rulemaking authority in 
378.15 	a manner that is beyond the scope of the purposes of this compact, or the powers granted 
378.16 	hereunder, or based upon another applicable standard of review.
378.17 	(c) The rules of the commission shall have the force of law in each participating state, 
378.18 	provided however that where the rules of the commission conflict with the laws of the 
378.19 	participating state that establish the medical services a PA may perform in the participating 
378.20 	state, as held by a court of competent jurisdiction, the rules of the commission shall be 
378.21 	ineffective in that state to the extent of the conflict.
378.22 	(d) If a majority of the legislatures of the participating states rejects a commission rule, 
378.23 	by enactment of a statute or resolution in the same manner used to adopt the compact within 
378.24 	four years of the date of adoption of the rule, then such rule shall have no further force and 
378.25 	effect in any participating state or in any state applying to participate in the compact.
378.26 	(e) Rules or amendments to the rules shall be adopted at a regular or special meeting of 
378.27 	the commission.
378.28 	(f) Prior to promulgation and adoption of a final rule or rules by the commission and at 
378.29 	least 30 days in advance of the meeting at which the rule will be considered and voted upon, 
378.30 	the commission shall file a notice of proposed rulemaking:
378.31 	(1) on the website of the commission or other publicly accessible platform;
378.32 	(2) to persons who have requested notice of the commission's notices of proposed 
378.33 	rulemaking; and
379.1 	(3) in such other ways as the commission may specify by rule.
379.2 	(g) The notice of proposed rulemaking shall include:
379.3 	(1) the time, date, and location of the public hearing on the proposed rule;
379.4 	(2) the time, date, and location of the public hearing in which the proposed rule will be 
379.5 	considered and voted upon;
379.6 	(3) the text of the proposed rule and the reason for the proposed rule;
379.7 	(4) a request for comments on the proposed rule from any interested person and the date 
379.8 	by which written comments must be received; and
379.9 	(5) the manner in which interested persons may submit notice to the commission of their 
379.10 	intention to attend the public hearing and any written comments.
379.11 	(h) Prior to adoption of a proposed rule, the commission shall allow persons to submit 
379.12 	written data, facts, opinions, and arguments, which shall be made available to the public.
379.13 	(i) If the hearing is held via electronic means, the commission shall publish the mechanism 
379.14 	for access to the electronic hearing:
379.15 	(1) all persons wishing to be heard at the hearing shall notify the commission of their 
379.16 	desire to appear and testify at the hearing, not less than five business days before the 
379.17 	scheduled date of the hearing, as directed in the notice of proposed rulemaking;
379.18 	(2) hearings shall be conducted in a manner providing each person who wishes to 
379.19 	comment a fair and reasonable opportunity to comment orally or in writing;
379.20 	(3) all hearings shall be recorded. A copy of the recording and the written comments, 
379.21 	data, facts, opinions, and arguments received in response to the proposed rulemaking shall 
379.22 	be made available to a person on request; and
379.23 	(4) nothing in this section shall be construed as requiring a separate hearing on each 
379.24 	rule. Proposed rules may be grouped for the convenience of the commission at hearings 
379.25 	required by this article.
379.26 	(j) Following the public hearing, the commission shall consider all written and oral 
379.27 	comments timely received.
379.28 	(k) The commission shall, by majority vote of all delegates, take final action on the 
379.29 	proposed rule and shall determine the effective date of the rule, if adopted, based on the 
379.30 	rulemaking record and the full text of the rule. The commission:
379.31 	(1) shall, if adopted, post the rule on the commission's website;
380.1 	(2) may adopt changes to the proposed rule provided the changes do not expand the 
380.2 	original purpose of the proposed rule;
380.3 	(3) shall provide on its website an explanation of the reasons for substantive changes 
380.4 	made to the proposed rule as well as reasons for substantive changes not made that were 
380.5 	recommended by commenters; and
380.6 	(4) shall determine a reasonable effective date for the rule. Except for an emergency as 
380.7 	provided in paragraph (l), the effective date of the rule shall be no sooner than 30 days after 
380.8 	the commission issued the notice that it adopted the rule.
380.9 	(l) Upon determination that an emergency exists, the commission may consider and 
380.10 	adopt an emergency rule with 24 hours' prior notice, without the opportunity for comment 
380.11 	or hearing, provided that the usual rulemaking procedures provided in the compact and in 
380.12 	this article shall be retroactively applied to the rule as soon as reasonably possible, in no 
380.13 	event later than 90 days after the effective date of the rule. For the purposes of this provision, 
380.14 	an emergency rule is one that must be adopted immediately by the commission in order to:
380.15 	(1) meet an imminent threat to public health, safety, or welfare;
380.16 	(2) prevent a loss of commission or participating state funds;
380.17 	(3) meet a deadline for the promulgation of a commission rule that is established by 
380.18 	federal law or rule; or
380.19 	(4) protect public health and safety.
380.20 	(m) The commission or an authorized committee of the commission may direct revisions 
380.21 	to a previously adopted commission rule for purposes of correcting typographical errors, 
380.22 	errors in format, errors in consistency, or grammatical errors. Public notice of any revisions 
380.23 	shall be posted on the website of the commission. The revision shall be subject to challenge 
380.24 	by any person for a period of 30 days after posting. The revision may be challenged only 
380.25 	on grounds that the revision results in a material change to a rule. A challenge shall be made 
380.26 	as set forth in the notice of revisions and delivered to the commission prior to the end of 
380.27 	the notice period. If no challenge is made, the revision will take effect without further action. 
380.28 	If the revision is challenged, the revision may not take effect without the approval of the 
380.29 	commission.
380.30 	(n) No participating state's rulemaking requirements shall apply under this compact.
380.31 	ARTICLE X
380.32 	OVERSIGHT, DISPUTE RESOLUTION, AND ENFORCEMENT
381.1 	(a) Oversight:
381.2 	(1) the executive and judicial branches of state government in each participating state 
381.3 	shall enforce this compact and take all actions necessary and appropriate to implement the 
381.4 	compact;
381.5 	(2) venue is proper and judicial proceedings by or against the commission shall be 
381.6 	brought solely and exclusively in a court of competent jurisdiction where the principal office 
381.7 	of the commission is located. The commission may waive venue and jurisdictional defenses 
381.8 	to the extent it adopts or consents to participate in alternative dispute resolution proceedings. 
381.9 	Nothing herein shall affect or limit the selection or propriety of venue in any action against 
381.10 	a licensee for professional malpractice, misconduct, or any such similar matter; and
381.11 	(3) the commission shall be entitled to receive service of process in any such proceeding 
381.12 	regarding the enforcement or interpretation of the compact or the commission's rules and 
381.13 	shall have standing to intervene in such a proceeding for all purposes. Failure to provide 
381.14 	service of process to the commission shall render a judgment or order void as to the 
381.15 	commission, this compact, or commission rules.
381.16 	(b) Default, technical assistance, and termination:
381.17 	(1) if the commission determines that a participating state has defaulted in the 
381.18 	performance of its obligations or responsibilities under this compact or the commission 
381.19 	rules, the commission shall:
381.20 	(i) provide written notice to the defaulting state and other participating states describing 
381.21 	the default, the proposed means of curing the default, or any other action that the commission 
381.22 	may take; and
381.23 	(ii) offer remedial training and specific technical assistance regarding the default;
381.24 	(2) if a state in default fails to cure the default, the defaulting state may be terminated 
381.25 	from this compact upon an affirmative vote of a majority of the delegates of the participating 
381.26 	states, and all rights, privileges, and benefits conferred by this compact may be terminated 
381.27 	on the effective date of termination. A cure of the default does not relieve the offending 
381.28 	state of obligations or liabilities incurred during the period of default;
381.29 	(3) termination of participation in this compact shall be imposed only after all other 
381.30 	means of securing compliance have been exhausted. Notice of intent to suspend or terminate 
381.31 	shall be given by the commission to the governor, the majority and minority leaders of the 
381.32 	defaulting state's legislature, and the licensing board or boards of each of the participating 
381.33 	states;
382.1 	(4) a state that has been terminated is responsible for all assessments, obligations, and 
382.2 	liabilities incurred through the effective date of termination, including obligations that 
382.3 	extend beyond the effective date of termination;
382.4 	(5) the commission shall not bear any costs related to a state that is found to be in default 
382.5 	or that has been terminated from this compact, unless agreed upon in writing between the 
382.6 	commission and the defaulting state;
382.7 	(6) the defaulting state may appeal its termination from the compact by the commission 
382.8 	by petitioning the United States District Court for the District of Columbia or the federal 
382.9 	district where the commission has its principal offices. The prevailing member shall be 
382.10 	awarded all costs of such litigation, including reasonable attorney fees; and
382.11 	(7) upon the termination of a state's participation in the compact, the state shall 
382.12 	immediately provide notice to all licensees within that state of such termination:
382.13 	(i) licensees who have been granted a compact privilege in that state shall retain the 
382.14 	compact privilege for 180 days following the effective date of such termination; and
382.15 	(ii) licensees who are licensed in that state who have been granted a compact privilege 
382.16 	in a participating state shall retain the compact privilege for 180 days, unless the licensee 
382.17 	also has a qualifying license in a participating state or obtains a qualifying license in a 
382.18 	participating state before the 180-day period ends, in which case the compact privilege shall 
382.19 	continue.
382.20 	(c) Dispute resolution:
382.21 	(1) upon request by a participating state, the commission shall attempt to resolve disputes 
382.22 	related to this compact that arise among participating states and between participating and 
382.23 	nonparticipating states; and
382.24 	(2) the commission shall promulgate a rule providing for both mediation and binding 
382.25 	dispute resolution for disputes, as appropriate.
382.26 	(d) Enforcement:
382.27 	(1) the commission, in the reasonable exercise of its discretion, shall enforce the 
382.28 	provisions of this compact and rules of the commission;
382.29 	(2) if compliance is not secured after all means to secure compliance have been exhausted, 
382.30 	by majority vote, the commission may initiate legal action in the United States District 
382.31 	Court for the District of Columbia or the federal district where the commission has its 
382.32 	principal offices against a participating state in default, to enforce compliance with the 
383.1 	provisions of this compact and the commission's promulgated rules and bylaws. The relief 
383.2 	sought may include both injunctive relief and damages. In the event judicial enforcement 
383.3 	is necessary, the prevailing member shall be awarded all costs of such litigation, including 
383.4 	reasonable attorney fees; and
383.5 	(3) the remedies herein shall not be the exclusive remedies of the commission. The 
383.6 	commission may pursue any other remedies available under federal or state law.
383.7 	(e) Legal action against the commission:
383.8 	(1) a participating state may initiate legal action against the commission in the United 
383.9 	States District Court for the District of Columbia or the federal district where the commission 
383.10 	has its principal offices to enforce compliance with the provisions of the compact and the 
383.11 	commission's rules. The relief sought may include both injunctive relief and damages. In 
383.12 	the event judicial enforcement is necessary, the prevailing party shall be awarded all costs 
383.13 	of such litigation, including reasonable attorney fees; and
383.14 	(2) no person other than a participating state shall enforce this compact against the 
383.15 	commission.
383.16 	ARTICLE XI
383.17 	DATE OF IMPLEMENTATION OF THE PA LICENSURE COMPACT COMMISSION
383.18 	(a) This compact shall come into effect on the date on which the compact statute is 
383.19 	enacted into law in the seventh participating state.
383.20 	(b) On or after the effective date of the compact, the commission shall convene and 
383.21 	review the enactment of each of the charter participating states to determine if the statute 
383.22 	enacted by each charter participating state is materially different than the model compact. 
383.23 	A charter participating state whose enactment is found to be materially different from the 
383.24 	model compact shall be entitled to the default process set forth in article X, paragraph (b).
383.25 	(c) If any participating state later withdraws from the compact or its participation is 
383.26 	terminated, the commission shall remain in existence and the compact shall remain in effect 
383.27 	even if the number of participating states should be less than seven. Participating states 
383.28 	enacting the compact subsequent to the commission convening shall be subject to the process 
383.29 	set forth in article VII, paragraph (c), clause (21), to determine if their enactments are 
383.30 	materially different from the model compact and whether they qualify for participation in 
383.31 	the compact.
383.32 	(d) Any participating state enacting the compact subsequent to the seven initial charter 
383.33 	participating states shall be subject to the process set forth in article VII, paragraph (c), 
384.1 	clause (21), to determine if the state's enactment is materially different from the model 
384.2 	compact and whether the state qualifies for participation in the compact.
384.3 	(e) All actions taken for the benefit of the commission or in furtherance of the purposes 
384.4 	of the administration of the compact prior to the effective date of the compact or the 
384.5 	commission coming into existence shall be considered to be actions of the commission 
384.6 	unless specifically repudiated by the commission.
384.7 	(f) Any state that joins this compact shall be subject to the commission's rules and bylaws 
384.8 	as they exist on the date on which this compact becomes law in that state. Any rule that has 
384.9 	been previously adopted by the commission shall have the full force and effect of law on 
384.10 	the day this compact becomes law in that state.
384.11 	(g) Any participating state may withdraw from this compact by enacting a statute 
384.12 	repealing the same:
384.13 	(1) a participating state's withdrawal shall not take effect until 180 days after enactment 
384.14 	of the repealing statute. During this 180-day period, all compact privileges that were in 
384.15 	effect in the withdrawing state and were granted to licensees licensed in the withdrawing 
384.16 	state shall remain in effect. If any licensee licensed in the withdrawing state is also licensed 
384.17 	in another participating state or obtains a license in another participating state within the 
384.18 	180 days, the licensee's compact privileges in other participating states shall not be affected 
384.19 	by the passage of the 180 days;
384.20 	(2) withdrawal shall not affect the continuing requirement of the state licensing board 
384.21 	or boards of the withdrawing state to comply with the investigative and adverse action 
384.22 	reporting requirements of this compact prior to the effective date of withdrawal; and
384.23 	(3) upon the enactment of a statute withdrawing a state from this compact, the state shall 
384.24 	immediately provide notice of such withdrawal to all licensees within that state. Such 
384.25 	withdrawing state shall continue to recognize all licenses granted pursuant to this compact 
384.26 	for a minimum of 180 days after the date of such notice of withdrawal.
384.27 	(h) Nothing contained in this compact shall be construed to invalidate or prevent any 
384.28 	PA licensure agreement or other cooperative arrangement between participating states or a 
384.29 	participating state and a nonparticipating state that does not conflict with the provisions of 
384.30 	this compact.
384.31 	(i) This compact may be amended by the participating states. No amendment to this 
384.32 	compact shall become effective and binding upon any participating state until it is enacted 
385.1 	materially in the same manner into the laws of all participating states, as determined by the 
385.2 	commission.
385.3 	ARTICLE XII
385.4 	CONSTRUCTION AND SEVERABILITY
385.5 	(a) This compact and the commission's rulemaking authority shall be liberally construed 
385.6 	so as to effectuate the purposes of the compact and its implementation and administration. 
385.7 	Provisions of the compact expressly authorizing or requiring the promulgation of rules shall 
385.8 	not be construed to limit the commission's rulemaking authority solely for those purposes.
385.9 	(b) The provisions of this compact shall be severable and if any phrase, clause, sentence, 
385.10 	or provision of this compact is held by a court of competent jurisdiction to be contrary to 
385.11 	the constitution of any participating state, of a state seeking participation in the compact, 
385.12 	or of the United States, or the applicability thereof to any government, agency, person, or 
385.13 	circumstance is held to be unconstitutional by a court of competent jurisdiction, the validity 
385.14 	of the remainder of this compact and the applicability thereof to any government, agency, 
385.15 	person, or circumstance shall not be affected thereby.
385.16 	(c) Notwithstanding paragraph (b) or any provision of this article, the commission may 
385.17 	deny a state's participation in the compact or, in accordance with the requirements of article 
385.18 	X, paragraph (b), terminate a participating state's participation in the compact, if it determines 
385.19 	that a constitutional requirement of a participating state is, or would be with respect to a 
385.20 	state seeking to participate in the compact, a material departure from the compact. Otherwise, 
385.21 	if this compact shall be held to be contrary to the constitution of any participating state, the 
385.22 	compact shall remain in full force and effect as to the remaining participating states and in 
385.23 	full force and effect as to the participating state affected as to all severable matters.
385.24 	ARTICLE XIII
385.25 	BINDING EFFECT OF THE COMPACT
385.26 	(a) Nothing herein prevents the enforcement of any other law of a participating state 
385.27 	that is not inconsistent with this compact.
385.28 	(b) Any laws in a participating state in conflict with this compact are superseded to the 
385.29 	extent of the conflict.
385.30 	(c) All agreements between the commission and the participating states are binding in 
385.31 	accordance with their terms.

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

386.1 	Sec. 2. DIRECTION TO BOARD OF MEDICAL PRACTICE.
 386.2 	The Board of Medical Practice must publish the effective date of the compact in 
386.3 	Minnesota Statutes, section 148.675, in the State Register and on the board's website.

386.4 	ARTICLE 27
386.5 	OCCUPATIONAL THERAPY LICENSURE COMPACT

386.6 	Section 1. [148.645] OCCUPATIONAL THERAPY LICENSURE COMPACT.
386.7 	ARTICLE I
386.8 	TITLE
386.9 	This statute shall be known and cited as the occupational therapist licensure compact.
386.10 	ARTICLE II
386.11 	DEFINITIONS
386.12 	As used in this compact, and except as otherwise provided, the following definitions 
386.13 	shall apply:
386.14 	(A) "Active duty military" means full-time duty status in the active uniformed service 
386.15 	of the United States, including members of the National Guard and Reserve on active duty 
386.16 	orders pursuant to United States Code, title 10, sections 1209 and 1211.
386.17 	(B) "Adverse action" means any administrative, civil, equitable, or criminal action 
386.18 	permitted by a state's laws which is imposed by a licensing board or other authority against 
386.19 	an occupational therapist or occupational therapy assistant, including actions against an 
386.20 	individual's license or compact privilege such as censure, revocation, suspension, probation, 
386.21 	monitoring of the licensee, or restriction on the licensee's practice.
386.22 	(C) "Alternative program" means a nondisciplinary monitoring process approved by an 
386.23 	occupational therapy licensing board.
386.24 	(D) "Compact privilege" means the authorization, which is equivalent to a license, 
386.25 	granted by a remote state to allow a licensee from another member state to practice as an 
386.26 	occupational therapist or practice as an occupational therapy assistant in the remote state 
386.27 	under its laws and rules. The practice of occupational therapy occurs in the member state 
386.28 	where the patient or client is located at the time of the patient or client encounter.
386.29 	(E) "Continuing competence" or "continuing education" means a requirement, as a 
386.30 	condition of license renewal, to provide evidence of participation in, and completion of, 
386.31 	educational and professional activities relevant to practice or area of work.
387.1 	(F) "Current significant investigative information" means investigative information that 
387.2 	a licensing board, after an inquiry or investigation that includes notification and an 
387.3 	opportunity for the occupational therapist or occupational therapy assistant to respond, if 
387.4 	required by state law, has reason to believe is not groundless and, if proven true, would 
387.5 	indicate more than a minor infraction.
387.6 	(G) "Data system" means a repository of information about licensees, including but not 
387.7 	limited to license status, investigative information, compact privileges, and adverse actions.
387.8 	(H) "Encumbered license" means a license in which an adverse action restricts the 
387.9 	practice of occupational therapy by the licensee or said adverse action has been reported to 
387.10 	the National Practitioners Data Bank (NPDB).
387.11 	(I) "Executive committee" means a group of directors elected or appointed to act on 
387.12 	behalf of, and within the powers granted to them by, the commission.
387.13 	(J) "Home state" means the member state that is the licensee's primary state of residence.
387.14 	(K) "Impaired practitioner" means an individual whose professional practice is adversely 
387.15 	affected by substance abuse, addiction, or other health-related conditions.
387.16 	(L) "Investigative information" means information, records, or documents received or 
387.17 	generated by an occupational therapy licensing board pursuant to an investigation.
387.18 	(M) "Jurisprudence requirement" means the assessment of an individual's knowledge 
387.19 	of the laws and rules governing the practice of occupational therapy in a state.
387.20 	(N) "Licensee" means an individual who currently holds an authorization from the state 
387.21 	to practice as an occupational therapist or as an occupational therapy assistant.
387.22 	(O) "Member state" means a state that has enacted the compact.
387.23 	(P) "Occupational therapist" means an individual who is licensed by a state to practice 
387.24 	occupational therapy.
387.25 	(Q) "Occupational therapy assistant" means an individual who is licensed by a state to 
387.26 	assist in the practice of occupational therapy.
387.27 	(R) "Occupational therapy," "occupational therapy practice," and "the practice of 
387.28 	occupational therapy" mean the care and services provided by an occupational therapist or 
387.29 	an occupational therapy assistant as set forth in the member state's statutes and regulations.
387.30 	(S) "Occupational therapy compact commission" or "commission" means the national 
387.31 	administrative body whose membership consists of all states that have enacted the compact.
388.1 	(T) "Occupational therapy licensing board" or "licensing board" means the agency of a 
388.2 	state that is authorized to license and regulate occupational therapists and occupational 
388.3 	therapy assistants.
388.4 	(U) "Primary state of residence" means the state, also known as the home state, in which 
388.5 	an occupational therapist or occupational therapy assistant who is not active duty military 
388.6 	declares a primary residence for legal purposes as verified by driver's license, federal income 
388.7 	tax return, lease, deed, mortgage, or voter registration or other verifying documentation as 
388.8 	further defined by commission rules.
388.9 	(V) "Remote state" means a member state other than the home state where a licensee is 
388.10 	exercising or seeking to exercise the compact privilege.
388.11 	(W) "Rule" means a regulation promulgated by the commission that has the force of 
388.12 	law.
388.13 	(X) "State" means any state, commonwealth, district, or territory of the United States 
388.14 	of America that regulates the practice of occupational therapy.
388.15 	(Y) "Single-state license" means an occupational therapist or occupational therapy 
388.16 	assistant license issued by a member state that authorizes practice only within the issuing 
388.17 	state and does not include a compact privilege in any other member state.
388.18 	(Z) "Telehealth" means the application of telecommunication technology to deliver 
388.19 	occupational therapy services for assessment, intervention, or consultation.
388.20 	ARTICLE III
388.21 	STATE PARTICIPATION IN THE COMPACT
388.22 	(A) To participate in the compact, a member state shall:
388.23 	(1) license occupational therapists and occupational therapy assistants;
388.24 	(2) participate fully in the commission's data system, including but not limited to using 
388.25 	the commission's unique identifier as defined in rules of the commission;
388.26 	(3) have a mechanism in place for receiving and investigating complaints about licensees;
388.27 	(4) notify the commission, in compliance with the terms of the compact and rules, of 
388.28 	any adverse action or the availability of investigative information regarding a licensee;
388.29 	(5) implement or utilize procedures for considering the criminal history records of 
388.30 	applicants for an initial compact privilege. These procedures shall include the submission 
388.31 	of fingerprints or other biometric-based information by applicants for the purpose of obtaining 
389.1 	an applicant's criminal history record information from the Federal Bureau of Investigation 
389.2 	and the agency responsible for retaining that state's criminal records;
389.3 	(i) A member state shall, within a time frame established by the commission, require a 
389.4 	criminal background check for a licensee seeking or applying for a compact privilege whose 
389.5 	primary state of residence is that member state by receiving the results of the Federal Bureau 
389.6 	of Investigation criminal record search, and shall use the results in making licensure 
389.7 	decisions.
389.8 	(ii) Communication between a member state, the commission, and among member states 
389.9 	regarding the verification of eligibility for licensure through the compact shall not include 
389.10 	any information received from the Federal Bureau of Investigation relating to a federal 
389.11 	criminal records check performed by a member state under Public Law 92-544;
389.12 	(6) comply with the rules of the commission;
389.13 	(7) utilize only a recognized national examination as a requirement for licensure pursuant 
389.14 	to the rules of the commission; and
389.15 	(8) have continuing competence or education requirements as a condition for license 
389.16 	renewal.
389.17 	(B) A member state shall grant the compact privilege to a licensee holding a valid 
389.18 	unencumbered license in another member state in accordance with the terms of the compact 
389.19 	and rules.
389.20 	(C) Member states may charge a fee for granting a compact privilege.
389.21 	(D) A member state shall provide for the state's delegate to attend all occupational therapy 
389.22 	compact commission meetings.
389.23 	(E) Individuals not residing in a member state shall continue to be able to apply for a 
389.24 	member state's single-state license as provided under the laws of each member state. 
389.25 	However, the single-state license granted to these individuals shall not be recognized as 
389.26 	granting the compact privilege in any other member state.
389.27 	(F) Nothing in this compact shall affect the requirements established by a member state 
389.28 	for the issuance of a single-state license.
389.29 	ARTICLE IV
389.30 	COMPACT PRIVILEGE
389.31 	(A) To exercise the compact privilege under the terms and provisions of the compact, 
389.32 	the licensee shall:
390.1 	(1) hold a license in the home state;
390.2 	(2) have a valid United States Social Security number or national practitioner 
390.3 	identification number;
390.4 	(3) have no encumbrance on any state license;
390.5 	(4) be eligible for a compact privilege in any member state in accordance with Article 
390.6 	IV, (D), (F), (G), and (H);
390.7 	(5) have paid all fines and completed all requirements resulting from any adverse action 
390.8 	against any license or compact privilege, and two years have elapsed from the date of such 
390.9 	completion;
390.10 	(6) notify the commission that the licensee is seeking the compact privilege within a 
390.11 	remote state or states;
390.12 	(7) pay any applicable fees, including any state fee, for the compact privilege;
390.13 	(8) complete a criminal background check in accordance with Article III, (A)(5). The 
390.14 	licensee shall be responsible for the payment of any fee associated with the completion of 
390.15 	a criminal background check;
390.16 	(9) meet any jurisprudence requirements established by the remote state or states in 
390.17 	which the licensee is seeking a compact privilege; and
390.18 	(10) report to the commission adverse action taken by any nonmember state within 30 
390.19 	days from the date the adverse action is taken.
390.20 	(B) The compact privilege is valid until the expiration date of the home state license. 
390.21 	The licensee must comply with the requirements of Article IV, (A), to maintain the compact 
390.22 	privilege in the remote state.
390.23 	(C) A licensee providing occupational therapy in a remote state under the compact 
390.24 	privilege shall function within the laws and regulations of the remote state.
390.25 	(D) Occupational therapy assistants practicing in a remote state shall be supervised by 
390.26 	an occupational therapist licensed or holding a compact privilege in that remote state.
390.27 	(E) A licensee providing occupational therapy in a remote state is subject to that state's 
390.28 	regulatory authority. A remote state may, in accordance with due process and that state's 
390.29 	laws, remove a licensee's compact privilege in the remote state for a specific period of time, 
390.30 	impose fines, or take any other necessary actions to protect the health and safety of its 
390.31 	citizens. The licensee may be ineligible for a compact privilege in any state until the specific 
390.32 	time for removal has passed and all fines are paid.
391.1 	(F) If a home state license is encumbered, the licensee shall lose the compact privilege 
391.2 	in any remote state until the following occur:
391.3 	(1) the home state license is no longer encumbered; and
391.4 	(2) two years have elapsed from the date on which the home state license is no longer 
391.5 	encumbered in accordance with Article IV, (F)(1).
391.6 	(G) Once an encumbered license in the home state is restored to good standing, the 
391.7 	licensee must meet the requirements of Article IV, (A), to obtain a compact privilege in any 
391.8 	remote state.
391.9 	(H) If a licensee's compact privilege in any remote state is removed, the individual may 
391.10 	lose the compact privilege in any other remote state until the following occur:
391.11 	(1) the specific period of time for which the compact privilege was removed has ended;
391.12 	(2) all fines have been paid and all conditions have been met;
391.13 	(3) two years have elapsed from the date of completing requirements for Article IV, 
391.14 	(H)(1) and (2); and
391.15 	(4) the compact privileges are reinstated by the commission and the compact data system 
391.16 	is updated to reflect reinstatement.
391.17 	(I) If a licensee's compact privilege in any remote state is removed due to an erroneous 
391.18 	charge, privileges shall be restored through the compact data system.
391.19 	(J) Once the requirements of Article IV, (H), have been met, the licensee must meet the 
391.20 	requirements in Article IV, (A), to obtain a compact privilege in a remote state.
391.21 	ARTICLE V
391.22 	OBTAINING A NEW HOME STATE LICENSE BY VIRTUE OF COMPACT PRIVILEGE
391.23 	(A) An occupational therapist or occupational therapy assistant may hold a home state 
391.24 	license, which allows for compact privileges in member states, in only one member state 
391.25 	at a time.
391.26 	(B) If an occupational therapist or occupational therapy assistant changes their primary 
391.27 	state of residence by moving between two member states:
391.28 	(1) the occupational therapist or occupational therapy assistant shall file an application 
391.29 	for obtaining a new home state license by virtue of a compact privilege, pay all applicable 
391.30 	fees, and notify the current and new home state in accordance with applicable rules adopted 
391.31 	by the commission;
392.1 	(2) upon receipt of an application for obtaining a new home state license by virtue of 
392.2 	compact privilege, the new home state shall verify that the occupational therapist or 
392.3 	occupational therapy assistant meets the pertinent criteria outlined in Article IV via the data 
392.4 	system, without need for primary source verification except for:
392.5 	(i) an FBI fingerprint-based criminal background check if not previously performed or 
392.6 	updated pursuant to applicable rules adopted by the commission in accordance with Public 
392.7 	Law 92-544;
392.8 	(ii) other criminal background checks as required by the new home state; and
392.9 	(iii) submission of any requisite jurisprudence requirements of the new home state;
392.10 	(3) the former home state shall convert the former home state license into a compact 
392.11 	privilege once the new home state has activated the new home state license in accordance 
392.12 	with applicable rules adopted by the commission;
392.13 	(4) notwithstanding any other provision of this compact, if the occupational therapist or 
392.14 	occupational therapy assistant cannot meet the criteria in Article IV, the new home state 
392.15 	shall apply its requirements for issuing a new single-state license; and
392.16 	(5) the occupational therapist or the occupational therapy assistant shall pay all applicable 
392.17 	fees to the new home state in order to be issued a new home state license.
392.18 	(C) If an occupational therapist or occupational therapy assistant changes their primary 
392.19 	state of residence by moving from a member state to a nonmember state, or from a 
392.20 	nonmember state to a member state, the state criteria shall apply for issuance of a single-state 
392.21 	license in the new state.
392.22 	(D) Nothing in this compact shall interfere with a licensee's ability to hold a single-state 
392.23 	license in multiple states; however, for the purposes of this compact, a licensee shall have 
392.24 	only one home state license.
392.25 	(E) Nothing in this compact shall affect the requirements established by a member state 
392.26 	for the issuance of a single-state license.
392.27 	ARTICLE VI
392.28 	ACTIVE DUTY MILITARY PERSONNEL OR THEIR SPOUSES
392.29 	Active duty military personnel, or their spouses, shall designate a home state where the 
392.30 	individual has a current license in good standing. The individual may retain the home state 
392.31 	designation during the period the service member is on active duty. Subsequent to designating 
393.1 	a home state, the individual shall only change their home state through application for 
393.2 	licensure in the new state or through the process described in Article V.
393.3 	ARTICLE VII
393.4 	ADVERSE ACTIONS
393.5 	(A) A home state shall have exclusive power to impose adverse action against an 
393.6 	occupational therapist's or occupational therapy assistant's license issued by the home state.
393.7 	(B) In addition to the other powers conferred by state law, a remote state shall have the 
393.8 	authority, in accordance with existing state due process law, to:
393.9 	(1) take adverse action against an occupational therapist's or occupational therapy 
393.10 	assistant's compact privilege within that member state; and
393.11 	(2) issue subpoenas for both hearings and investigations that require the attendance and 
393.12 	testimony of witnesses as well as the production of evidence. Subpoenas issued by a licensing 
393.13 	board in a member state for the attendance and testimony of witnesses or the production of 
393.14 	evidence from another member state shall be enforced in the latter state by any court of 
393.15 	competent jurisdiction, according to the practice and procedure of that court applicable to 
393.16 	subpoenas issued in proceedings pending before that court. The issuing authority shall pay 
393.17 	any witness fees, travel expenses, mileage, and other fees required by the service statutes 
393.18 	of the state in which the witnesses or evidence are located.
393.19 	(C) For purposes of taking adverse action, the home state shall give the same priority 
393.20 	and effect to reported conduct received from a member state as it would if the conduct had 
393.21 	occurred within the home state. In so doing, the home state shall apply its own state laws 
393.22 	to determine appropriate action.
393.23 	(D) The home state shall complete any pending investigations of an occupational therapist 
393.24 	or occupational therapy assistant who changes their primary state of residence during the 
393.25 	course of the investigations. The home state, where the investigations were initiated, shall 
393.26 	also have the authority to take appropriate action and shall promptly report the conclusions 
393.27 	of the investigations to the compact commission data system. The occupational therapy 
393.28 	compact commission data system administrator shall promptly notify the new home state 
393.29 	of any adverse actions.
393.30 	(E) A member state, if otherwise permitted by state law, may recover from the affected 
393.31 	occupational therapist or occupational therapy assistant the costs of investigations and 
393.32 	disposition of cases resulting from any adverse action taken against that occupational 
393.33 	therapist or occupational therapy assistant.
394.1 	(F) A member state may take adverse action based on the factual findings of the remote 
394.2 	state, provided that the member state follows its own procedures for taking the adverse 
394.3 	action.
394.4 	(G) Joint Investigations:
394.5 	(1) In addition to the authority granted to a member state by its respective state 
394.6 	occupational therapy laws and regulations or other applicable state law, any member state 
394.7 	may participate with other member states in joint investigations of licensees.
394.8 	(2) Member states shall share any investigative, litigation, or compliance materials in 
394.9 	furtherance of any joint or individual investigation initiated under the compact.
394.10 	(H) If an adverse action is taken by the home state against an occupational therapist's 
394.11 	or occupational therapy assistant's license, the occupational therapist's or occupational 
394.12 	therapy assistant's compact privilege in all other member states shall be deactivated until 
394.13 	all encumbrances have been removed from the state license. All home state disciplinary 
394.14 	orders that impose adverse action against an occupational therapist's or occupational therapy 
394.15 	assistant's license shall include a statement that the occupational therapist's or occupational 
394.16 	therapy assistant's compact privilege is deactivated in all member states during the pendency 
394.17 	of the order.
394.18 	(I) If a member state takes adverse action, the member state shall promptly notify the 
394.19 	administrator of the data system. The administrator of the data system shall promptly notify 
394.20 	the home state of any adverse actions by remote states.
394.21 	(J) Nothing in this compact shall override a member state's decision that participation 
394.22 	in an alternative program may be used in lieu of adverse action.
394.23 	ARTICLE VIII
394.24 	ESTABLISHMENT OF THE OCCUPATIONAL THERAPY COMPACT COMMISSION
394.25 	(A) The compact member states hereby create and establish a joint public agency known 
394.26 	as the occupational therapy compact commission:
394.27 	(1) The commission is an instrumentality of the compact states.
394.28 	(2) Except as provided under paragraph (I), venue is proper and judicial proceedings by 
394.29 	or against the commission shall be brought solely and exclusively in a court of competent 
394.30 	jurisdiction where the principal office of the commission is located. The commission may 
394.31 	waive venue and jurisdictional defenses to the extent it adopts or consents to participate in 
394.32 	alternative dispute resolution proceedings.
395.1 	(3) Nothing in this compact shall be construed to be a waiver of sovereign immunity.
395.2 	(B) Membership, Voting, and Meetings:
395.3 	(1) Each member state shall have and be limited to one delegate selected by that member 
395.4 	state's licensing board.
395.5 	(2) The delegate shall be either:
395.6 	(i) a current member of the licensing board who is an occupational therapist, occupational 
395.7 	therapy assistant, or public member; or
395.8 	(ii) an administrator of the licensing board.
395.9 	(3) Any delegate may be removed or suspended from office as provided by the law of 
395.10 	the state from which the delegate is appointed.
395.11 	(4) The member state board shall fill any vacancy occurring in the commission within 
395.12 	90 days.
395.13 	(5) Each delegate shall be entitled to one vote with regard to the promulgation of rules 
395.14 	and creation of bylaws and shall otherwise have an opportunity to participate in the business 
395.15 	and affairs of the commission. A delegate shall vote in person or by such other means as 
395.16 	provided in the bylaws. The bylaws may provide for delegates' participation in meetings 
395.17 	by telephone or other means of communication.
395.18 	(6) The commission shall meet at least once during each calendar year. Additional 
395.19 	meetings shall be held as set forth in the bylaws.
395.20 	(7) The commission shall establish by rule a term of office for delegates.
395.21 	(C) The commission shall have the following powers and duties:
395.22 	(1) establish a code of ethics for the commission;
395.23 	(2) establish the fiscal year of the commission;
395.24 	(3) establish bylaws;
395.25 	(4) maintain its financial records in accordance with the bylaws;
395.26 	(5) meet and take such actions as are consistent with the provisions of this compact and 
395.27 	the bylaws;
395.28 	(6) promulgate uniform rules to facilitate and coordinate implementation and 
395.29 	administration of this compact. The rules shall have the force and effect of law and shall 
395.30 	be binding in all member states;
396.1 	(7) bring and prosecute legal proceedings or actions in the name of the commission, 
396.2 	provided that the standing of any state occupational therapy licensing board to sue or be 
396.3 	sued under applicable law shall not be affected;
396.4 	(8) purchase and maintain insurance and bonds;
396.5 	(9) borrow, accept, or contract for services of personnel, including but not limited to 
396.6 	employees of a member state;
396.7 	(10) hire employees, elect or appoint officers, fix compensation, define duties, grant 
396.8 	such individuals appropriate authority to carry out the purposes of the compact, and establish 
396.9 	the commission's personnel policies and programs relating to conflicts of interest, 
396.10 	qualifications of personnel, and other related personnel matters;
396.11 	(11) accept any and all appropriate donations and grants of money, equipment, supplies, 
396.12 	materials, and services, and receive, utilize, and dispose of the same; provided that at all 
396.13 	times the commission shall avoid any appearance of impropriety or conflict of interest;
396.14 	(12) lease, purchase, accept appropriate gifts or donations of, or otherwise own, hold, 
396.15 	improve, or use any property, real, personal, or mixed; provided that at all times the 
396.16 	commission shall avoid any appearance of impropriety;
396.17 	(13) sell, convey, mortgage, pledge, lease, exchange, abandon, or otherwise dispose of 
396.18 	any property real, personal, or mixed;
396.19 	(14) establish a budget and make expenditures;
396.20 	(15) borrow money;
396.21 	(16) appoint committees, including standing committees composed of members, state 
396.22 	regulators, state legislators or their representatives, and consumer representatives, and other 
396.23 	interested persons as may be designated in this compact and the bylaws;
396.24 	(17) provide and receive information from, and cooperate with, law enforcement agencies;
396.25 	(18) establish and elect an executive committee; and
396.26 	(19) perform other functions as may be necessary or appropriate to achieve the purposes 
396.27 	of this compact consistent with the state regulation of occupational therapy licensure and 
396.28 	practice.
396.29 	(D) The Executive Committee:
396.30 	(1) The executive committee shall have the power to act on behalf of the commission 
396.31 	according to the terms of this compact.
397.1 	(2) The executive committee shall be composed of nine members:
397.2 	(i) seven voting members who are elected by the commission from the current 
397.3 	membership of the commission;
397.4 	(ii) one ex-officio, nonvoting member from a recognized national occupational therapy 
397.5 	professional association; and
397.6 	(iii) one ex-officio, nonvoting member from a recognized national occupational therapy 
397.7 	certification organization.
397.8 	(3) The ex-officio members will be selected by their respective organizations.
397.9 	(4) The commission may remove any member of the executive committee as provided 
397.10 	in the bylaws.
397.11 	(5) The executive committee shall meet at least annually.
397.12 	(6) The executive committee shall have the following duties and responsibilities:
397.13 	(i) recommend to the entire commission changes to the rules or bylaws, changes to this 
397.14 	compact legislation, fees paid by compact member states such as annual dues, and any 
397.15 	commission compact fee charged to licensees for the compact privilege;
397.16 	(ii) ensure compact administration services are appropriately provided, contractual or 
397.17 	otherwise;
397.18 	(iii) prepare and recommend the budget;
397.19 	(iv) maintain financial records on behalf of the commission;
397.20 	(v) monitor compact compliance of member states and provide compliance reports to 
397.21 	the commission;
397.22 	(vi) establish additional committees as necessary; and
397.23 	(vii) perform other duties as provided in rules or bylaws.
397.24 	(E) Meetings of the Commission:
397.25 	(1) All meetings shall be open to the public, and public notice of meetings shall be given 
397.26 	in the same manner as required under the rulemaking provisions in Article X.
397.27 	(2) The commission or the executive committee or other committees of the commission 
397.28 	may convene in a closed, nonpublic meeting if the commission or executive committee or 
397.29 	other committees of the commission must discuss:
397.30 	(i) noncompliance of a member state with its obligations under the compact;
398.1 	(ii) the employment, compensation, discipline, or other matters, practices, or procedures 
398.2 	related to specific employees or other matters related to the commission's internal personnel 
398.3 	practices and procedures;
398.4 	(iii) current, threatened, or reasonably anticipated litigation;
398.5 	(iv) negotiation of contracts for the purchase, lease, or sale of goods, services, or real 
398.6 	estate;
398.7 	(v) accusing any person of a crime or formally censuring any person;
398.8 	(vi) disclosure of trade secrets or commercial or financial information that is privileged 
398.9 	or confidential;
398.10 	(vii) disclosure of information of a personal nature where disclosure would constitute a 
398.11 	clearly unwarranted invasion of personal privacy;
398.12 	(viii) disclosure of investigative records compiled for law enforcement purposes;
398.13 	(ix) disclosure of information related to any investigative reports prepared by or on 
398.14 	behalf of or for use of the commission or other committee charged with responsibility of 
398.15 	investigation or determination of compliance issues pursuant to the compact; or
398.16 	(x) matters specifically exempted from disclosure by federal or member state statute.
398.17 	(3) If a meeting, or portion of a meeting, is closed pursuant to this provision, the 
398.18 	commission's legal counsel or designee shall certify that the meeting may be closed and 
398.19 	shall reference each relevant exempting provision.
398.20 	(4) The commission shall keep minutes that fully and clearly describe all matters 
398.21 	discussed in a meeting and shall provide a full and accurate summary of actions taken, and 
398.22 	the reasons therefore, including a description of the views expressed. All documents 
398.23 	considered in connection with an action shall be identified in such minutes. All minutes and 
398.24 	documents of a closed meeting shall remain under seal, subject to release by a majority vote 
398.25 	of the commission or order of a court of competent jurisdiction.
398.26 	(F) Financing of the Commission:
398.27 	(1) The commission shall pay, or provide for the payment of, the reasonable expenses 
398.28 	of its establishment, organization, and ongoing activities.
398.29 	(2) The commission may accept any and all appropriate revenue sources, donations, and 
398.30 	grants of money, equipment, supplies, materials, and services.
399.1 	(3) The commission may levy on and collect an annual assessment from each member 
399.2 	state or impose fees on other parties to cover the cost of the operations and activities of the 
399.3 	commission and its staff, which must be in a total amount sufficient to cover its annual 
399.4 	budget as approved by the commission each year for which revenue is not provided by other 
399.5 	sources. The aggregate annual assessment amount shall be allocated based upon a formula 
399.6 	to be determined by the commission, which shall promulgate a rule binding upon all member 
399.7 	states.
399.8 	(4) The commission shall not incur obligations of any kind prior to securing the funds 
399.9 	adequate to meet the same; nor shall the commission pledge the credit of any of the member 
399.10 	states, except by and with the authority of the member state.
399.11 	(5) The commission shall keep accurate accounts of all receipts and disbursements. The 
399.12 	receipts and disbursements of the commission shall be subject to the audit and accounting 
399.13 	procedures established under its bylaws. However, all receipts and disbursements of funds 
399.14 	handled by the commission shall be audited yearly by a certified or licensed public 
399.15 	accountant, and the report of the audit shall be included in and become part of the annual 
399.16 	report of the commission.
399.17 	(G) Qualified Immunity, Defense, and Indemnification:
399.18 	(1) The members, officers, executive director, employees, and representatives of the 
399.19 	commission shall be immune from suit and liability, either personally or in their official 
399.20 	capacity, for any claim for damage to or loss of property or personal injury or other civil 
399.21 	liability caused by or arising out of any actual or alleged act, error, or omission that occurred, 
399.22 	or that the person against whom the claim is made had a reasonable basis for believing 
399.23 	occurred within the scope of commission employment, duties, or responsibilities; provided 
399.24 	that nothing in this paragraph shall be construed to protect any such person from suit or 
399.25 	liability for any damage, loss, injury, or liability caused by the intentional or willful or 
399.26 	wanton misconduct of that person.
399.27 	(2) The commission shall defend any member, officer, executive director, employee, or 
399.28 	representative of the commission in any civil action seeking to impose liability arising out 
399.29 	of any actual or alleged act, error, or omission that occurred within the scope of commission 
399.30 	employment, duties, or responsibilities, or that the person against whom the claim is made 
399.31 	had a reasonable basis for believing occurred within the scope of commission employment, 
399.32 	duties, or responsibilities; provided that nothing herein shall be construed to prohibit that 
399.33 	person from retaining their own counsel; and provided further, that the actual or alleged 
400.1 	act, error, or omission did not result from that person's intentional or willful or wanton 
400.2 	misconduct.
400.3 	(3) The commission shall indemnify and hold harmless any member, officer, executive 
400.4 	director, employee, or representative of the commission for the amount of any settlement 
400.5 	or judgment obtained against that person arising out of any actual or alleged act, error, or 
400.6 	omission that occurred within the scope of commission employment, duties, or 
400.7 	responsibilities, or that such person had a reasonable basis for believing occurred within 
400.8 	the scope of commission employment, duties, or responsibilities; provided that the actual 
400.9 	or alleged act, error, or omission did not result from the intentional or willful or wanton 
400.10 	misconduct of that person.
400.11 	(H) Notwithstanding paragraph (G), clause (1), the liability of the executive director, 
400.12 	employees, or representatives of the interstate commission, acting within the scope of their 
400.13 	employment or duties, may not exceed the limits of liability set forth under the constitution 
400.14 	and laws of this state for state officials, employees, and agents. This paragraph expressly 
400.15 	incorporates  section 3.736, and neither expands nor limits the rights and remedies provided 
400.16 	under that statute.
400.17 	(I) Except for a claim alleging a violation of this compact, a claim against the commission, 
400.18 	its executive director, employees, or representatives alleging a violation of the constitution 
400.19 	and laws of this state may be brought in any county where the plaintiff resides. Nothing in 
400.20 	this paragraph creates a private right of action.
400.21 	(J) Nothing in this compact shall be construed as a limitation on the liability of any 
400.22 	licensee for professional malpractice or misconduct, which shall be governed solely by any 
400.23 	other applicable state laws.
400.24 	ARTICLE IX
400.25 	DATA SYSTEM
400.26 	(A) The commission shall provide for the development, maintenance, and utilization of 
400.27 	a coordinated database and reporting system containing licensure, adverse action, and 
400.28 	investigative information on all licensed individuals in member states.
400.29 	(B) A member state shall submit a uniform data set to the data system on all individuals 
400.30 	to whom this compact is applicable, utilizing a unique identifier, as required by the rules 
400.31 	of the commission, including:
400.32 	(1) identifying information;
400.33 	(2) licensure data;
401.1 	(3) adverse actions against a license or compact privilege;
401.2 	(4) nonconfidential information related to alternative program participation;
401.3 	(5) any denial of application for licensure and the reason or reasons for such denial;
401.4 	(6) other information that may facilitate the administration of this compact, as determined 
401.5 	by the rules of the commission; and
401.6 	(7) current significant investigative information.
401.7 	(C) Current significant investigative information and other investigative information 
401.8 	pertaining to a licensee in any member state will only be available to other member states.
401.9 	(D) The commission shall promptly notify all member states of any adverse action taken 
401.10 	against a licensee or an individual applying for a license. Adverse action information 
401.11 	pertaining to a licensee in any member state will be available to any other member state.
401.12 	(E) Member states contributing information to the data system may designate information 
401.13 	that may not be shared with the public without the express permission of the contributing 
401.14 	state.
401.15 	(F) Any information submitted to the data system that is subsequently required to be 
401.16 	expunged by the laws of the member state contributing the information shall be removed 
401.17 	from the data system.
401.18 	ARTICLE X
401.19 	RULEMAKING
401.20 	(A) The commission shall exercise its rulemaking powers pursuant to the criteria set 
401.21 	forth in this Article and the rules adopted thereunder. Rules and amendments shall become 
401.22 	binding as of the date specified in each rule or amendment.
401.23 	(B) The commission shall promulgate reasonable rules in order to effectively and 
401.24 	efficiently achieve the purposes of the compact. Notwithstanding the foregoing, in the event 
401.25 	the commission exercises its rulemaking authority in a manner that is beyond the scope of 
401.26 	the purposes of the compact, or the powers granted hereunder, then such an action by the 
401.27 	commission shall be invalid and have no force and effect.
401.28 	(C) If a majority of the legislatures of the member states rejects a rule, by enactment of 
401.29 	a statute or resolution in the same manner used to adopt the compact within four years of 
401.30 	the date of adoption of the rule, then such rule shall have no further force and effect in any 
401.31 	member state.
402.1 	(D) Rules or amendments to the rules shall be adopted at a regular or special meeting 
402.2 	of the commission.
402.3 	(E) Prior to promulgation and adoption of a final rule or rules by the commission, and 
402.4 	at least 30 days in advance of the meeting at which the rule will be considered and voted 
402.5 	upon, the commission shall file a notice of proposed rulemaking:
402.6 	(1) on the website of the commission or other publicly accessible platform; and
402.7 	(2) on the website of each member state occupational therapy licensing board or other 
402.8 	publicly accessible platform or the publication in which each state would otherwise publish 
402.9 	proposed rules.
402.10 	(F) The notice of proposed rulemaking shall include:
402.11 	(1) the proposed time, date, and location of the meeting in which the rule will be 
402.12 	considered and voted upon;
402.13 	(2) the text of the proposed rule or amendment and the reason for the proposed rule;
402.14 	(3) a request for comments on the proposed rule from any interested person; and
402.15 	(4) the manner in which interested persons may submit notice to the commission of their 
402.16 	intention to attend the public hearing and any written comments.
402.17 	(G) Prior to adoption of a proposed rule, the commission shall allow persons to submit 
402.18 	written data, facts, opinions, and arguments, which shall be made available to the public.
402.19 	(H) The commission shall grant an opportunity for a public hearing before it adopts a 
402.20 	rule or amendment if a hearing is requested by:
402.21 	(1) at least 25 persons;
402.22 	(2) a state or federal governmental subdivision or agency; or
402.23 	(3) an association or organization having at least 25 members.
402.24 	(I) If a hearing is held on the proposed rule or amendment, the commission shall publish 
402.25 	the place, time, and date of the scheduled public hearing. If the hearing is held via electronic 
402.26 	means, the commission shall publish the mechanism for access to the electronic hearing:
402.27 	(1) All persons wishing to be heard at the hearing shall notify the executive director of 
402.28 	the commission or other designated member in writing of their desire to appear and testify 
402.29 	at the hearing not less than five business days before the scheduled date of the hearing.
402.30 	(2) Hearings shall be conducted in a manner providing each person who wishes to 
402.31 	comment a fair and reasonable opportunity to comment orally or in writing.
403.1 	(3) All hearings will be recorded. A copy of the recording will be made available on 
403.2 	request.
403.3 	(4) Nothing in this Article shall be construed as requiring a separate hearing on each 
403.4 	rule. Rules may be grouped for the convenience of the commission at hearings required by 
403.5 	this Article.
403.6 	(J) Following the scheduled hearing date, or by the close of business on the scheduled 
403.7 	hearing date if the hearing was not held, the commission shall consider all written and oral 
403.8 	comments received.
403.9 	(K) If no written notice of intent to attend the public hearing by interested parties is 
403.10 	received, the commission may proceed with promulgation of the proposed rule without a 
403.11 	public hearing.
403.12 	(L) The commission shall, by majority vote of all members, take final action on the 
403.13 	proposed rule and shall determine the effective date of the rule, if any, based on the 
403.14 	rulemaking record and the full text of the rule.
403.15 	(M) Upon determination that an emergency exists, the commission may consider and 
403.16 	adopt an emergency rule without prior notice, opportunity for comment, or hearing; provided 
403.17 	that the usual rulemaking procedures provided in the compact and in this Article shall be 
403.18 	retroactively applied to the rule as soon as reasonably possible, in no event later than 90 
403.19 	days after the effective date of the rule. For the purposes of this provision, an emergency 
403.20 	rule is one that must be adopted immediately in order to:
403.21 	(1) meet an imminent threat to public health, safety, or welfare;
403.22 	(2) prevent a loss of commission or member state funds;
403.23 	(3) meet a deadline for the promulgation of an administrative rule that is established by 
403.24 	federal law or rule; or
403.25 	(4) protect public health and safety.
403.26 	(N) The commission or an authorized committee of the commission may direct revisions 
403.27 	to a previously adopted rule or amendment for purposes of correcting typographical errors, 
403.28 	errors in format, errors in consistency, or grammatical errors. Public notice of any revisions 
403.29 	shall be posted on the website of the commission. The revision shall be subject to challenge 
403.30 	by any person for a period of 30 days after posting. The revision may be challenged only 
403.31 	on grounds that the revision results in a material change to a rule. A challenge shall be made 
403.32 	in writing and delivered to the chair of the commission prior to the end of the notice period. 
404.1 	If no challenge is made, the revision will take effect without further action. If the revision 
404.2 	is challenged, the revision may not take effect without the approval of the commission.
404.3 	ARTICLE XI
404.4 	OVERSIGHT, DISPUTE RESOLUTION, AND ENFORCEMENT
404.5 	(A) Oversight:
404.6 	(1) The executive, legislative, and judicial branches of state government in each member 
404.7 	state shall enforce this compact and take all actions necessary and appropriate to effectuate 
404.8 	the compact's purposes and intent. The provisions of this compact and the rules promulgated 
404.9 	hereunder shall have standing as statutory law.
404.10 	(2) All courts shall take judicial notice of the compact and the rules in any judicial or 
404.11 	administrative proceeding in a member state pertaining to the subject matter of this compact 
404.12 	which may affect the powers, responsibilities, or actions of the commission.
404.13 	(3) The commission shall be entitled to receive service of process in any such proceeding, 
404.14 	and shall have standing to intervene in such a proceeding for all purposes. Failure to provide 
404.15 	service of process to the commission shall render a judgment or order void as to the 
404.16 	commission, this compact, or promulgated rules.
404.17 	(B) Default, Technical Assistance, and Termination:
404.18 	(1) If the commission determines that a member state has defaulted in the performance 
404.19 	of its obligations or responsibilities under this compact or the promulgated rules, the 
404.20 	commission shall:
404.21 	(i) provide written notice to the defaulting state and other member states of the nature 
404.22 	of the default, the proposed means of curing the default, or any other action to be taken by 
404.23 	the commission; and
404.24 	(ii) provide remedial training and specific technical assistance regarding the default.
404.25 	(2) If a state in default fails to cure the default, the defaulting state may be terminated 
404.26 	from the compact upon an affirmative vote of a majority of the member states, and all rights, 
404.27 	privileges, and benefits conferred by this compact may be terminated on the effective date 
404.28 	of termination. A cure of the default does not relieve the offending state of obligations or 
404.29 	liabilities incurred during the period of default.
404.30 	(3) Termination of membership in the compact shall be imposed only after all other 
404.31 	means of securing compliance have been exhausted. Notice of intent to suspend or terminate 
405.1 	shall be given by the commission to the governor, the majority and minority leaders of the 
405.2 	defaulting state's legislature, and each of the member states.
405.3 	(4) A state that has been terminated is responsible for all assessments, obligations, and 
405.4 	liabilities incurred through the effective date of termination, including obligations that 
405.5 	extend beyond the effective date of termination.
405.6 	(5) The commission shall not bear any costs related to a state that is found to be in default 
405.7 	or that has been terminated from the compact, unless agreed upon in writing between the 
405.8 	commission and the defaulting state.
405.9 	(6) The defaulting state may appeal the action of the commission by petitioning the 
405.10 	United States District Court for the District of Columbia or the federal district where the 
405.11 	commission has its principal offices. The prevailing member shall be awarded all costs of 
405.12 	such litigation, including reasonable attorney fees.
405.13 	(C) Dispute Resolution:
405.14 	(1) Upon request by a member state, the commission shall attempt to resolve disputes 
405.15 	related to the compact that arise among member states and between member and nonmember 
405.16 	states.
405.17 	(2) The commission shall promulgate a rule providing for both mediation and binding 
405.18 	dispute resolution for disputes as appropriate.
405.19 	(D) Enforcement:
405.20 	(1) The commission, in the reasonable exercise of its discretion, shall enforce the 
405.21 	provisions and rules of this compact.
405.22 	(2) By majority vote, the commission may initiate legal action in the United States 
405.23 	District Court for the District of Columbia or the federal district where the commission has 
405.24 	its principal offices against a member state in default to enforce compliance with the 
405.25 	provisions of the compact and its promulgated rules and bylaws. The relief sought may 
405.26 	include both injunctive relief and damages. In the event that judicial enforcement is necessary, 
405.27 	the prevailing member shall be awarded all costs of such litigation, including reasonable 
405.28 	attorney fees.
405.29 	(3) The remedies herein shall not be the exclusive remedies of the commission. The 
405.30 	commission may pursue any other remedies available under federal or state law.
405.31 	ARTICLE XII
406.1 	DATE OF IMPLEMENTATION OF THE INTERSTATE COMMISSION FOR 
406.2 	OCCUPATIONAL THERAPY PRACTICE AND ASSOCIATED RULES, WITHDRAWAL, 
406.3 	AND AMENDMENT
406.4 	(A) The compact shall come into effect on the date on which the compact statute is 
406.5 	enacted into law in the tenth member state. The provisions, which become effective at that 
406.6 	time, shall be limited to the powers granted to the commission relating to assembly and the 
406.7 	promulgation of rules. Thereafter, the commission shall meet and exercise rulemaking 
406.8 	powers necessary to the implementation and administration of the compact.
406.9 	(B) Any state that joins the compact subsequent to the commission's initial adoption of 
406.10 	the rules shall be subject to the rules as they exist on the date on which the compact becomes 
406.11 	law in that state. Any rule that has been previously adopted by the commission shall have 
406.12 	the full force and effect of law on the day the compact becomes law in that state.
406.13 	(C) Any member state may withdraw from this compact by enacting a statute repealing 
406.14 	the same:
406.15 	(1) A member state's withdrawal shall not take effect until six months after enactment 
406.16 	of the repealing statute.
406.17 	(2) Withdrawal shall not affect the continuing requirement of the withdrawing state's 
406.18 	occupational therapy licensing board to comply with the investigative and adverse action 
406.19 	reporting requirements of this compact prior to the effective date of withdrawal.
406.20 	(D) Nothing contained in this compact shall be construed to invalidate or prevent any 
406.21 	occupational therapy licensure agreement or other cooperative arrangement between a 
406.22 	member state and a nonmember state that does not conflict with the provisions of this 
406.23 	compact.
406.24 	(E) This compact may be amended by the member states. No amendment to this compact 
406.25 	shall become effective and binding upon any member state until it is enacted into the laws 
406.26 	of all member states.
406.27 	ARTICLE XIII
406.28 	CONSTRUCTION AND SEVERABILITY
406.29 	This compact shall be liberally construed so as to effectuate the purposes thereof. The 
406.30 	provisions of this compact shall be severable and if any phrase, clause, sentence, or provision 
406.31 	of this compact is declared to be contrary to the constitution of any member state or of the 
406.32 	United States or the applicability thereof to any government, agency, person, or circumstance 
406.33 	is held invalid, the validity of the remainder of this compact and the applicability thereof 
407.1 	to any government, agency, person, or circumstance shall not be affected thereby. If this 
407.2 	compact shall be held contrary to the constitution of any member state, the compact shall 
407.3 	remain in full force and effect as to the remaining member states and in full force and effect 
407.4 	as to the member state affected as to all severable matters.
407.5 	ARTICLE XIV
407.6 	BINDING EFFECT OF COMPACT AND OTHER LAWS
407.7 	(A) A licensee providing occupational therapy in a remote state under the compact 
407.8 	privilege shall function within the laws and regulations of the remote state.
407.9 	(B) Nothing herein prevents the enforcement of any other law of a member state that is 
407.10 	not inconsistent with the compact.
407.11 	(C) Any laws in a member state in conflict with the compact are superseded to the extent 
407.12 	of the conflict.
407.13 	(D) Any lawful actions of the commission, including all rules and bylaws promulgated 
407.14 	by the commission, are binding upon the member states.
407.15 	(E) All agreements between the commission and the member states are binding in 
407.16 	accordance with their terms.
407.17 	(F) In the event any provision of the compact exceeds the constitutional limits imposed 
407.18 	on the legislature of any member state, the provision shall be ineffective to the extent of the 
407.19 	conflict with the constitutional provision in question in that member state.

407.20 	ARTICLE 28
407.21 	PHYSICAL THERAPY LICENSURE COMPACT

407.22 	Section 1. [148.676] PHYSICAL THERAPY LICENSURE COMPACT.
407.23 	The physical therapy licensure compact is enacted into law and entered into with all 
407.24 	other jurisdictions legally joining in the compact in the form substantially specified in this 
407.25 	section.
407.26 	ARTICLE I
407.27 	TITLE
407.28 	This statute shall be known and cited as the physical therapy licensure compact.
407.29 	ARTICLE II
407.30 	DEFINITIONS
408.1 	As used in this compact, and except as otherwise provided, the following terms have 
408.2 	the meanings given them.
408.3 	(a) "Active duty military" means full-time duty status in the active uniformed service 
408.4 	of the United States, including members of the National Guard and Reserve on active duty 
408.5 	orders pursuant to United States Code, title 10, chapters 1209 and 1211.
408.6 	(b) "Adverse action" means disciplinary action taken by a physical therapy licensing 
408.7 	board based upon misconduct, unacceptable performance, or a combination of both.
408.8 	(c) "Alternative program" means a nondisciplinary monitoring or practice remediation 
408.9 	process approved by a physical therapy licensing board. Alternative program includes but 
408.10 	is not limited to substance abuse issues.
408.11 	(d) "Compact privilege" means the authorization granted by a remote state to allow a 
408.12 	licensee from another member state to practice as a physical therapist or work as a physical 
408.13 	therapist assistant in the remote state under its laws and rules. The practice of physical 
408.14 	therapy occurs in the member state where the patient or client is located at the time of the 
408.15 	patient or client encounter.
408.16 	(e) "Continuing competence" means a requirement, as a condition of license renewal, 
408.17 	to provide evidence of participation in, or completion of, educational and professional 
408.18 	activities relevant to practice or area of work.
408.19 	(f) "Data system" means a repository of information about licensees, including 
408.20 	examination, licensure, investigative, compact privilege, and adverse action.
408.21 	(g) "Encumbered license" means a license that a physical therapy licensing board has 
408.22 	limited in any way.
408.23 	(h) "Executive board" means a group of directors elected or appointed to act on behalf 
408.24 	of, and within the powers granted to them by, the commission.
408.25 	(i) "Home state" means the member state that is the licensee's primary state of residence.
408.26 	(j) "Investigative information" means information, records, and documents received or 
408.27 	generated by a physical therapy licensing board pursuant to an investigation.
408.28 	(k) "Jurisprudence requirement" means the assessment of an individual's knowledge of 
408.29 	the laws and rules governing the practice of physical therapy in a state.
408.30 	(l) "Licensee" means an individual who currently holds an authorization from the state 
408.31 	to practice as a physical therapist or to work as a physical therapist assistant.
408.32 	(m) "Member state" means a state that has enacted the compact.
409.1 	(n) "Party state" means any member state in which a licensee holds a current license or 
409.2 	compact privilege or is applying for a license or compact privilege.
409.3 	(o) "Physical therapist" means an individual who is licensed by a state to practice physical 
409.4 	therapy.
409.5 	(p) "Physical therapist assistant" means an individual who is licensed or certified by a 
409.6 	state and who assists the physical therapist in selected components of physical therapy.
409.7 	(q) "Physical therapy," "physical therapy practice," or "the practice of physical therapy" 
409.8 	means the care and services provided by or under the direction and supervision of a licensed 
409.9 	physical therapist.
409.10 	(r) "Physical Therapy Compact Commission" or "commission" means the national 
409.11 	administrative body whose membership consists of all states that have enacted the compact.
409.12 	(s) "Physical therapy licensing board" or "licensing board" means the agency of a state 
409.13 	that is responsible for the licensing and regulation of physical therapists and physical therapist 
409.14 	assistants.
409.15 	(t) "Remote state" means a member state other than the home state where a licensee is 
409.16 	exercising or seeking to exercise the compact privilege.
409.17 	(u) "Rule" means a regulation, principle, or directive promulgated by the commission 
409.18 	that has the force of law.
409.19 	(v) "State" means any state, commonwealth, district, or territory of the United States 
409.20 	that regulates the practice of physical therapy.
409.21 	ARTICLE III
409.22 	STATE PARTICIPATION IN THE COMPACT
409.23 	(a) To participate in the compact, a state must:
409.24 	(1) participate fully in the commission's data system, including using the commission's 
409.25 	unique identifier as defined in rules;
409.26 	(2) have a mechanism in place for receiving and investigating complaints about licensees;
409.27 	(3) notify the commission, in compliance with the terms of the compact and rules, of 
409.28 	any adverse action or the availability of investigative information regarding a licensee;
409.29 	(4) fully implement a criminal background check requirement, within a time frame 
409.30 	established by rule, by receiving the results of the Federal Bureau of Investigation record 
410.1 	search on criminal background checks and use the results in making licensure decisions in 
410.2 	accordance with paragraph (b);
410.3 	(5) comply with the rules of the commission;
410.4 	(6) utilize a recognized national examination as a requirement for licensure pursuant to 
410.5 	the rules of the commission; and
410.6 	(7) have continuing competence requirements as a condition for license renewal.
410.7 	(b) Upon adoption of this compact, the member state shall have the authority to obtain 
410.8 	biometric-based information from each physical therapy licensure applicant and submit this 
410.9 	information to the Federal Bureau of Investigation for a criminal background check in 
410.10 	accordance with United States Code, title 28, section 534, and United States Code, title 42, 
410.11 	section 14616.
410.12 	(c) A member state shall grant the compact privilege to a licensee holding a valid 
410.13 	unencumbered license in another member state in accordance with the terms of the compact 
410.14 	and rules.
410.15 	(d) Member states may charge a fee for granting a compact privilege.
410.16 	ARTICLE IV
410.17 	COMPACT PRIVILEGE
410.18 	(a) To exercise the compact privilege under the terms and provisions of the compact, 
410.19 	the licensee shall:
410.20 	(1) hold a license in the home state;
410.21 	(2) have no encumbrance on any state license;
410.22 	(3) be eligible for a compact privilege in any member state in accordance with paragraphs 
410.23 	(d), (g), and (h);
410.24 	(4) have not had any adverse action against any license or compact privilege within the 
410.25 	previous two years;
410.26 	(5) notify the commission that the licensee is seeking the compact privilege within a 
410.27 	remote state or states;
410.28 	(6) pay any applicable fees, including any state fee, for the compact privilege;
410.29 	(7) meet any jurisprudence requirements established by the remote state or states in 
410.30 	which the licensee is seeking a compact privilege; and
411.1 	(8) report to the commission adverse action taken by any nonmember state within 30 
411.2 	days from the date the adverse action is taken.
411.3 	(b) The compact privilege is valid until the expiration date of the home license. The 
411.4 	licensee must comply with the requirements of paragraph (a) to maintain the compact 
411.5 	privilege in the remote state.
411.6 	(c) A licensee providing physical therapy in a remote state under the compact privilege 
411.7 	shall function within the laws and regulations of the remote state.
411.8 	(d) A licensee providing physical therapy in a remote state is subject to that state's 
411.9 	regulatory authority. A remote state may, in accordance with due process and that state's 
411.10 	laws, remove a licensee's compact privilege in the remote state for a specific period of time, 
411.11 	impose fines, or take any other necessary actions to protect the health and safety of its 
411.12 	citizens. The licensee is not eligible for a compact privilege in any state until the specific 
411.13 	time for removal has passed and all fines are paid.
411.14 	(e) If a home state license is encumbered, the licensee shall lose the compact privilege 
411.15 	in any remote state until the following occur:
411.16 	(1) the home state license is no longer encumbered; and
411.17 	(2) two years have elapsed from the date of the adverse action.
411.18 	(f) Once an encumbered license in the home state is restored to good standing, the 
411.19 	licensee must meet the requirements of paragraph (a) to obtain a compact privilege in any 
411.20 	remote state.
411.21 	(g) If a licensee's compact privilege in any remote state is removed, the individual shall 
411.22 	lose the compact privilege in any remote state until the following occur:
411.23 	(1) the specific period of time for which the compact privilege was removed has ended;
411.24 	(2) all fines have been paid; and
411.25 	(3) two years have elapsed from the date of the adverse action.
411.26 	(h) Once the requirements of paragraph (g) have been met, the licensee must meet the 
411.27 	requirements in paragraph (a) to obtain a compact privilege in a remote state.
411.28 	ARTICLE V
411.29 	ACTIVE DUTY MILITARY PERSONNEL OR THEIR SPOUSES
411.30 	A licensee who is active duty military or is the spouse of an individual who is active 
411.31 	duty military may designate one of the following as the home state:
412.1 	(1) home of record;
412.2 	(2) permanent change of station (PCS) state; or
412.3 	(3) state of current residence if different than the PCS state or home of record.
412.4 	ARTICLE VI
412.5 	ADVERSE ACTIONS
412.6 	(a) A home state shall have exclusive power to impose adverse action against a license 
412.7 	issued by the home state.
412.8 	(b) A home state may take adverse action based on the investigative information of a 
412.9 	remote state, so long as the home state follows its own procedures for imposing adverse 
412.10 	action.
412.11 	(c) Nothing in this compact shall override a member state's decision that participation 
412.12 	in an alternative program may be used in lieu of adverse action and that such participation 
412.13 	shall remain nonpublic if required by the member state's laws. Member states must require 
412.14 	licensees who enter any alternative programs in lieu of discipline to agree not to practice 
412.15 	in any other member state during the term of the alternative program without prior 
412.16 	authorization from such other member state.
412.17 	(d) Any member state may investigate actual or alleged violations of the statutes and 
412.18 	rules authorizing the practice of physical therapy in any other member state in which a 
412.19 	physical therapist or physical therapist assistant holds a license or compact privilege.
412.20 	(e) A remote state shall have the authority to:
412.21 	(1) take adverse actions as set forth in article IV, paragraph (d), against a licensee's 
412.22 	compact privilege in the state;
412.23 	(2) issue subpoenas for both hearings and investigations that require the attendance and 
412.24 	testimony of witnesses and the production of evidence. Subpoenas issued by a physical 
412.25 	therapy licensing board in a party state for the attendance and testimony of witnesses, or 
412.26 	the production of evidence from another party state, shall be enforced in the latter state by 
412.27 	any court of competent jurisdiction, according to the practice and procedure of that court 
412.28 	applicable to subpoenas issued in proceedings pending before it. The issuing authority shall 
412.29 	pay any witness fees, travel expenses, mileage, and other fees required by the service statutes 
412.30 	of the state where the witnesses or evidence are located; and
413.1 	(3) if otherwise permitted by state law, recover from the licensee the costs of 
413.2 	investigations and disposition of cases resulting from any adverse action taken against that 
413.3 	licensee.
413.4 	(f) In addition to the authority granted to a member state by its respective physical therapy 
413.5 	practice act or other applicable state law, a member state may participate with other member 
413.6 	states in joint investigations of licensees.
413.7 	(g) Member states shall share any investigative, litigation, or compliance materials in 
413.8 	furtherance of any joint or individual investigation initiated under the compact.
413.9 	ARTICLE VII
413.10 	ESTABLISHMENT OF THE PHYSICAL THERAPY COMPACT COMMISSION
413.11 	(a) The compact member states hereby create and establish a joint public agency known 
413.12 	as the Physical Therapy Compact Commission:
413.13 	(1) the commission is an instrumentality of the compact states;
413.14 	(2) except as provided under paragraph (h), venue is proper and judicial proceedings by 
413.15 	or against the commission shall be brought solely and exclusively in a court of competent 
413.16 	jurisdiction where the principal office of the commission is located. The commission may 
413.17 	waive venue and jurisdictional defenses to the extent it adopts or consents to participate in 
413.18 	alternative dispute resolution proceedings; and
413.19 	(3) nothing in this compact shall be construed to be a waiver of sovereign immunity.
413.20 	(b) Membership, voting, and meetings:
413.21 	(1) each member state shall have and be limited to one delegate selected by that member 
413.22 	state's licensing board;
413.23 	(2) the delegate shall be a current member of the licensing board who is a physical 
413.24 	therapist, physical therapist assistant, public member, or the board administrator;
413.25 	(3) each delegate shall be entitled to one vote with regard to the promulgation of rules 
413.26 	and creation of bylaws and shall otherwise have an opportunity to participate in the business 
413.27 	and affairs of the commission;
413.28 	(4) a delegate shall vote in person or by such other means as provided in the bylaws. 
413.29 	The bylaws may provide for delegates' participation in meetings by telephone or other means 
413.30 	of communication;
414.1 	(5) any delegate may be removed or suspended from office as provided by the laws of 
414.2 	the state from which the delegate is appointed;
414.3 	(6) the member state board shall fill any vacancy occurring in the commission;
414.4 	(7) the commission shall meet at least once during each calendar year. Additional 
414.5 	meetings shall be held as set forth in the bylaws;
414.6 	(8) all meetings shall be open to the public and public notice of meetings shall be given 
414.7 	in the same manner as required under the rulemaking provisions in article IX;
414.8 	(9) the commission or the executive board or other committees of the commission may 
414.9 	convene in a closed, nonpublic meeting if the commission or executive board or other 
414.10 	committees of the commission must discuss:
414.11 	(i) noncompliance of a member state with its obligations under the compact;
414.12 	(ii) the employment, compensation, discipline, or other matters, practices, or procedures 
414.13 	related to specific employees or other matters related to the commission's internal personnel 
414.14 	practices and procedures;
414.15 	(iii) current, threatened, or reasonably anticipated litigation;
414.16 	(iv) negotiation of contracts for the purchase, lease, or sale of goods, services, or real 
414.17 	estate;
414.18 	(v) accusing any person of a crime or formally censuring any person;
414.19 	(vi) disclosure of trade secrets or commercial or financial information that is privileged 
414.20 	or confidential;
414.21 	(vii) disclosure of information of a personal nature where disclosure would constitute a 
414.22 	clearly unwarranted invasion of personal privacy;
414.23 	(viii) disclosure of investigative records compiled for law enforcement purposes;
414.24 	(ix) disclosure of information related to any investigative reports prepared by or on 
414.25 	behalf of or for use of the commission or other committee charged with responsibility of 
414.26 	investigation or determination of compliance issues pursuant to the compact; or
414.27 	(x) matters specifically exempted from disclosure by federal or member state statute;
414.28 	(10) if a meeting, or portion of a meeting, is closed pursuant to this provision, the 
414.29 	commission's legal counsel or designee shall certify that the meeting may be closed and 
414.30 	shall reference each relevant exempting provision; and
415.1 	(11) the commission shall keep minutes that fully and clearly describe all matters 
415.2 	discussed in a meeting and shall provide a full and accurate summary of actions taken and 
415.3 	the reasons therefore, including a description of the views expressed. All documents 
415.4 	considered in connection with an action shall be identified in such minutes. All minutes and 
415.5 	documents of a closed meeting shall remain under seal, subject to release by a majority vote 
415.6 	of the commission or order of a court of competent jurisdiction.
415.7 	(c) The commission shall have the following powers and duties:
415.8 	(1) establish the fiscal year of the commission;
415.9 	(2) establish bylaws;
415.10 	(3) maintain its financial records in accordance with the bylaws;
415.11 	(4) meet and take such actions as are consistent with the provisions of this compact and 
415.12 	the bylaws;
415.13 	(5) promulgate uniform rules to facilitate and coordinate implementation and 
415.14 	administration of this compact. The rules shall have the force and effect of law and shall 
415.15 	be binding in all member states;
415.16 	(6) bring and prosecute legal proceedings or actions in the name of the commission, 
415.17 	provided that the standing of any state physical therapy licensing board to sue or be sued 
415.18 	under applicable law shall not be affected;
415.19 	(7) purchase and maintain insurance and bonds;
415.20 	(8) borrow, accept, or contract for services of personnel, including but not limited to 
415.21 	employees of a member state;
415.22 	(9) hire employees; elect or appoint officers; fix compensation; define duties; grant such 
415.23 	individuals appropriate authority to carry out the purposes of the compact; and establish the 
415.24 	commission's personnel policies and programs relating to conflicts of interest, qualifications 
415.25 	of personnel, and other related personnel matters;
415.26 	(10) accept any and all appropriate donations and grants of money, equipment, supplies, 
415.27 	materials, and services and receive, utilize, and dispose of the same, provided that at all 
415.28 	times the commission shall avoid any appearance of impropriety or conflict of interest;
415.29 	(11) lease; purchase; accept appropriate gifts or donations of; or otherwise to own, hold, 
415.30 	improve, or use any property, real, personal, or mixed, provided that at all times the 
415.31 	commission shall avoid any appearance of impropriety;
416.1 	(12) sell, convey, mortgage, pledge, lease, exchange, abandon, or otherwise dispose of 
416.2 	any property real, personal, or mixed;
416.3 	(13) establish a budget and make expenditures;
416.4 	(14) borrow money;
416.5 	(15) appoint committees, including standing committees composed of members, state 
416.6 	regulators, state legislators or their representatives, consumer representatives, and such 
416.7 	other interested persons as may be designated in this compact and the bylaws;
416.8 	(16) provide and receive information from, and cooperate with, law enforcement agencies;
416.9 	(17) establish and elect an executive board; and
416.10 	(18) perform such other functions as may be necessary or appropriate to achieve the 
416.11 	purposes of this compact consistent with the state regulation of physical therapy licensure 
416.12 	and practice.
416.13 	(d) The executive board:
416.14 	(1) the executive board shall have the power to act on behalf of the commission according 
416.15 	to the terms of this compact;
416.16 	(2) the executive board shall be composed of nine members as follows:
416.17 	(i) seven voting members who are elected by the commission from the current 
416.18 	membership of the commission;
416.19 	(ii) one ex officio, nonvoting member from the recognized national physical therapy 
416.20 	professional association; and
416.21 	(iii) one ex officio, nonvoting member from the recognized membership organization 
416.22 	of the physical therapy licensing boards;
416.23 	(3) the ex officio members must be selected by their respective organizations;
416.24 	(4) the commission may remove any member of the executive board as provided in the 
416.25 	bylaws;
416.26 	(5) the executive board shall meet at least annually; and
416.27 	(6) the executive board shall have the following duties and responsibilities:
416.28 	(i) recommend to the entire commission changes to the rules or bylaws, changes to this 
416.29 	compact legislation, fees paid by compact member states such as annual dues, and any 
416.30 	commission compact fee charged to licensees for the compact privilege;
417.1 	(ii) ensure compact administration services are appropriately provided, contractual or 
417.2 	otherwise;
417.3 	(iii) prepare and recommend the budget;
417.4 	(iv) maintain financial records on behalf of the commission;
417.5 	(v) monitor compact compliance of member states and provide compliance reports to 
417.6 	the commission;
417.7 	(vi) establish additional committees as necessary; and
417.8 	(vii) other duties as provided in rules or bylaws.
417.9 	(e) Financing of the commission:
417.10 	(1) the commission shall pay, or provide for the payment of, the reasonable expenses of 
417.11 	the commission's establishment, organization, and ongoing activities;
417.12 	(2) the commission may accept any and all appropriate revenue sources, donations, and 
417.13 	grants of money, equipment, supplies, materials, and services;
417.14 	(3) the commission may levy on and collect an annual assessment from each member 
417.15 	state or impose fees on other parties to cover the cost of the operations and activities of the 
417.16 	commission and the commission's staff, which must be in a total amount sufficient to cover 
417.17 	its annual budget as approved each year for which revenue is not provided by other sources. 
417.18 	The aggregate annual assessment amount shall be allocated based upon a formula to be 
417.19 	determined by the commission, which shall promulgate a rule binding upon all member 
417.20 	states;
417.21 	(4) the commission shall not incur obligations of any kind prior to securing the funds 
417.22 	adequate to meet the same; nor shall the commission pledge the credit of any of the member 
417.23 	states, except by and with the authority of the member state; and
417.24 	(5) the commission shall keep accurate accounts of all receipts and disbursements. The 
417.25 	receipts and disbursements of the commission shall be subject to the audit and accounting 
417.26 	procedures established under the commission's bylaws. However, all receipts and 
417.27 	disbursements of funds handled by the commission shall be audited yearly by a certified or 
417.28 	licensed public accountant and the report of the audit shall be included in and become part 
417.29 	of the annual report of the commission.
417.30 	(f) Qualified immunity, defense, and indemnification:
417.31 	(1) the members, officers, executive director, employees, and representatives of the 
417.32 	commission shall be immune from suit and liability, either personally or in their official 
418.1 	capacity, for any claim for damage to or loss of property or personal injury or other civil 
418.2 	liability caused by or arising out of any actual or alleged act, error, or omission that occurred, 
418.3 	or that the person against whom the claim is made had a reasonable basis for believing 
418.4 	occurred, within the scope of commission employment, duties, or responsibilities, provided 
418.5 	that nothing in this paragraph shall be construed to protect any such person from suit or 
418.6 	liability for any damage, loss, injury, or liability caused by the intentional or willful or 
418.7 	wanton misconduct of that person;
418.8 	(2) the commission shall defend any member, officer, executive director, employee, or 
418.9 	representative of the commission in any civil action seeking to impose liability arising out 
418.10 	of any actual or alleged act, error, or omission that occurred within the scope of commission 
418.11 	employment, duties, or responsibilities, or that the person against whom the claim is made 
418.12 	had a reasonable basis for believing occurred within the scope of commission employment, 
418.13 	duties, or responsibilities, provided that nothing herein shall be construed to prohibit that 
418.14 	person from retaining his or her own counsel, and provided further that the actual or alleged 
418.15 	act, error, or omission did not result from the intentional or willful or wanton misconduct 
418.16 	of that person; and
418.17 	(3) the commission shall indemnify and hold harmless any member, officer, executive 
418.18 	director, employee, or representative of the commission for the amount of any settlement 
418.19 	or judgment obtained against that person arising out of any actual or alleged act, error, or 
418.20 	omission that occurred within the scope of commission employment, duties, or 
418.21 	responsibilities, or that such person had a reasonable basis for believing occurred within 
418.22 	the scope of commission employment, duties, or responsibilities, provided that the actual 
418.23 	or alleged act, error, or omission did not result from the intentional or willful or wanton 
418.24 	misconduct of that person.
418.25 	(g) Notwithstanding paragraph (f), clause (1), the liability of the executive director, 
418.26 	employees, or representatives of the interstate commission, acting within the scope of their 
418.27 	employment or duties, may not exceed the limits of liability set forth under the constitution 
418.28 	and laws of this state for state officials, employees, and agents. This paragraph expressly 
418.29 	incorporates  section 3.736, and neither expands nor limits the rights and remedies provided 
418.30 	under that statute.
418.31 	(h) Except for a claim alleging a violation of this compact, a claim against the 
418.32 	commission, its executive director, employees, or representatives alleging a violation of the 
418.33 	constitution and laws of this state may be brought in any county where the plaintiff resides. 
418.34 	Nothing in this paragraph creates a private right of action.
419.1 	(i) Nothing in this compact shall be construed as a limitation on the liability of any 
419.2 	licensee for professional malpractice or misconduct, which shall be governed solely by any 
419.3 	other applicable state laws.
419.4 	ARTICLE VIII
419.5 	DATA SYSTEM
419.6 	(a) The commission shall provide for the development, maintenance, and utilization of 
419.7 	a coordinated database and reporting system containing licensure, adverse action, and 
419.8 	investigative information on all licensed individuals in member states.
419.9 	(b) Notwithstanding any other provision of state law to the contrary, a member state 
419.10 	shall submit a uniform data set to the data system on all individuals to whom this compact 
419.11 	is applicable as required by the rules of the commission, including:
419.12 	(1) identifying information;
419.13 	(2) licensure data;
419.14 	(3) adverse actions against a license or compact privilege;
419.15 	(4) nonconfidential information related to alternative program participation;
419.16 	(5) any denial of application for licensure and the reason or reasons for the denial; and
419.17 	(6) other information that may facilitate the administration of this compact, as determined 
419.18 	by the rules of the commission.
419.19 	(c) Investigative information pertaining to a licensee in any member state will only be 
419.20 	available to other party states.
419.21 	(d) The commission shall promptly notify all member states of any adverse action taken 
419.22 	against a licensee or an individual applying for a license. Adverse action information 
419.23 	pertaining to a licensee in any member state will be available to any other member state.
419.24 	(e) Member states contributing information to the data system may designate information 
419.25 	that may not be shared with the public without the express permission of the contributing 
419.26 	state.
419.27 	(f) Any information submitted to the data system that is subsequently required to be 
419.28 	expunged by the laws of the member state contributing the information shall be removed 
419.29 	from the data system.
419.30 	ARTICLE IX
419.31 	RULEMAKING
420.1 	(a) The commission shall exercise its rulemaking powers pursuant to the criteria set 
420.2 	forth in this article and the rules adopted thereunder. Rules and amendments shall become 
420.3 	binding as of the date specified in each rule or amendment.
420.4 	(b) If a majority of the legislatures of the member states rejects a rule, by enactment of 
420.5 	a statute or resolution in the same manner used to adopt the compact within four years of 
420.6 	the date of adoption of the rule, then such rule shall have no further force and effect in any 
420.7 	member state.
420.8 	(c) Rules or amendments to the rules shall be adopted at a regular or special meeting of 
420.9 	the commission.
420.10 	(d) Prior to promulgation and adoption of a final rule or rules by the commission and at 
420.11 	least 30 days in advance of the meeting at which the rule will be considered and voted upon, 
420.12 	the commission shall file a notice of proposed rulemaking:
420.13 	(1) on the website of the commission or other publicly accessible platform; and
420.14 	(2) on the website of each member state physical therapy licensing board or other publicly 
420.15 	accessible platform or the publication in which each state would otherwise publish proposed 
420.16 	rules.
420.17 	(e) The notice of proposed rulemaking shall include:
420.18 	(1) the proposed time, date, and location of the meeting in which the rule will be 
420.19 	considered and voted upon;
420.20 	(2) the text of the proposed rule or amendment and the reason for the proposed rule;
420.21 	(3) a request for comments on the proposed rule from any interested person; and
420.22 	(4) the manner in which interested persons may submit notice to the commission of their 
420.23 	intention to attend the public hearing and any written comments.
420.24 	(f) Prior to adoption of a proposed rule, the commission shall allow persons to submit 
420.25 	written data, facts, opinions, and arguments, which shall be made available to the public.
420.26 	(g) The commission shall grant an opportunity for a public hearing before it adopts a 
420.27 	rule or amendment if a hearing is requested by:
420.28 	(1) at least 25 persons;
420.29 	(2) a state or federal governmental subdivision or agency; or
420.30 	(3) an association having at least 25 members.
421.1 	(h) If a hearing is held on the proposed rule or amendment, the commission shall publish 
421.2 	the place, time, and date of the scheduled public hearing. If the hearing is held via electronic 
421.3 	means, the commission shall publish the mechanism for access to the electronic hearing:
421.4 	(1) all persons wishing to be heard at the hearing shall notify the executive director of 
421.5 	the commission or other designated member in writing of their desire to appear and testify 
421.6 	at the hearing not less than five business days before the scheduled date of the hearing;
421.7 	(2) hearings shall be conducted in a manner providing each person who wishes to 
421.8 	comment a fair and reasonable opportunity to comment orally or in writing;
421.9 	(3) all hearings will be recorded. A copy of the recording will be made available on 
421.10 	request; and
421.11 	(4) nothing in this section shall be construed as requiring a separate hearing on each 
421.12 	rule. Rules may be grouped for the convenience of the commission at hearings required by 
421.13 	this section.
421.14 	(i) Following the scheduled hearing date, or by the close of business on the scheduled 
421.15 	hearing date if the hearing was not held, the commission shall consider all written and oral 
421.16 	comments received.
421.17 	(j) If no written notice of intent to attend the public hearing by interested parties is 
421.18 	received, the commission may proceed with promulgation of the proposed rule without a 
421.19 	public hearing.
421.20 	(k) The commission shall, by majority vote of all members, take final action on the 
421.21 	proposed rule and shall determine the effective date of the rule, if any, based on the 
421.22 	rulemaking record and the full text of the rule.
421.23 	(l) Upon determination that an emergency exists, the commission may consider and 
421.24 	adopt an emergency rule without prior notice, opportunity for comment, or hearing, provided 
421.25 	that the usual rulemaking procedures provided in the compact and in this section shall be 
421.26 	retroactively applied to the rule as soon as reasonably possible, in no event later than 90 
421.27 	days after the effective date of the rule. For the purposes of this provision, an emergency 
421.28 	rule is one that must be adopted immediately in order to:
421.29 	(1) meet an imminent threat to public health, safety, or welfare;
421.30 	(2) prevent a loss of commission or member state funds;
421.31 	(3) meet a deadline for the promulgation of an administrative rule that is established by 
421.32 	federal law or rule; or
422.1 	(4) protect public health and safety.
422.2 	(m) The commission or an authorized committee of the commission may direct revisions 
422.3 	to a previously adopted rule or amendment for purposes of correcting typographical errors, 
422.4 	errors in format, errors in consistency, or grammatical errors. Public notice of any revisions 
422.5 	shall be posted on the website of the commission. The revision shall be subject to challenge 
422.6 	by any person for a period of 30 days after posting. The revision may be challenged only 
422.7 	on grounds that the revision results in a material change to a rule. A challenge shall be made 
422.8 	in writing and delivered to the chair of the commission prior to the end of the notice period. 
422.9 	If no challenge is made, the revision will take effect without further action. If the revision 
422.10 	is challenged, the revision may not take effect without the approval of the commission.
422.11 	ARTICLE X
422.12 	OVERSIGHT, DISPUTE RESOLUTION, AND ENFORCEMENT
422.13 	(a) Oversight:
422.14 	(1) the executive, legislative, and judicial branches of state government in each member 
422.15 	state shall enforce this compact and take all actions necessary and appropriate to effectuate 
422.16 	the compact's purposes and intent. The provisions of this compact and the rules promulgated 
422.17 	hereunder shall have standing as statutory law;
422.18 	(2) all courts shall take judicial notice of the compact and the rules in any judicial or 
422.19 	administrative proceeding in a member state pertaining to the subject matter of this compact 
422.20 	which may affect the powers, responsibilities, or actions of the commission; and
422.21 	(3) the commission shall be entitled to receive service of process in any such proceeding 
422.22 	and shall have standing to intervene in such a proceeding for all purposes. Failure to provide 
422.23 	service of process to the commission shall render a judgment or order void as to the 
422.24 	commission, this compact, or promulgated rules.
422.25 	(b) Default, technical assistance, and termination:
422.26 	(1) if the commission determines that a member state has defaulted in the performance 
422.27 	of its obligations or responsibilities under this compact or the promulgated rules, the 
422.28 	commission shall:
422.29 	(i) provide written notice to the defaulting state and other member states of the nature 
422.30 	of the default, the proposed means of curing the default, or any other action to be taken by 
422.31 	the commission; and
422.32 	(ii) provide remedial training and specific technical assistance regarding the default;
423.1 	(2) if a state in default fails to cure the default, the defaulting state may be terminated 
423.2 	from the compact upon an affirmative vote of a majority of the member states, and all rights, 
423.3 	privileges, and benefits conferred by this compact may be terminated on the effective date 
423.4 	of termination. A cure of the default does not relieve the offending state of obligations or 
423.5 	liabilities incurred during the period of default;
423.6 	(3) termination of membership in the compact shall be imposed only after all other means 
423.7 	of securing compliance have been exhausted. Notice of intent to suspend or terminate shall 
423.8 	be given by the commission to the governor, the majority and minority leaders of the 
423.9 	defaulting state's legislature, and each of the member states;
423.10 	(4) a state that has been terminated is responsible for all assessments, obligations, and 
423.11 	liabilities incurred through the effective date of termination, including obligations that 
423.12 	extend beyond the effective date of termination;
423.13 	(5) the commission shall not bear any costs related to a state that is found to be in default 
423.14 	or that has been terminated from the compact, unless agreed upon in writing between the 
423.15 	commission and the defaulting state; and
423.16 	(6) the defaulting state may appeal the action of the commission by petitioning the United 
423.17 	States District Court for the District of Columbia or the federal district where the commission 
423.18 	has its principal offices. The prevailing member shall be awarded all costs of such litigation, 
423.19 	including reasonable attorney fees.
423.20 	(c) Dispute resolution:
423.21 	(1) upon request by a member state, the commission shall attempt to resolve disputes 
423.22 	related to the compact that arise among member states and between member and nonmember 
423.23 	states; and
423.24 	(2) the commission shall promulgate a rule providing for both mediation and binding 
423.25 	dispute resolution for disputes as appropriate.
423.26 	(d) Enforcement:
423.27 	(1) the commission, in the reasonable exercise of its discretion, shall enforce the 
423.28 	provisions and rules of this compact;
423.29 	(2) by majority vote, the commission may initiate legal action in the United States District 
423.30 	Court for the District of Columbia or the federal district where the commission has its 
423.31 	principal offices against a member state in default to enforce compliance with the provisions 
423.32 	of the compact and its promulgated rules and bylaws. The relief sought may include both 
423.33 	injunctive relief and damages. In the event judicial enforcement is necessary, the prevailing 
424.1 	member shall be awarded all costs of such litigation, including reasonable attorney fees; 
424.2 	and
424.3 	(3) the remedies herein shall not be the exclusive remedies of the commission. The 
424.4 	commission may pursue any other remedies available under federal or state law.
424.5 	ARTICLE XI
424.6 	DATE OF IMPLEMENTATION OF THE INTERSTATE COMPACT FOR PHYSICAL 
424.7 	THERAPY PRACTICE AND ASSOCIATED RULES, WITHDRAWAL, AND 
424.8 	AMENDMENTS
424.9 	(a) The compact shall come into effect on the date on which the compact statute is 
424.10 	enacted into law in the tenth member state. The provisions, which become effective at that 
424.11 	time, shall be limited to the powers granted to the commission relating to assembly and the 
424.12 	promulgation of rules. Thereafter, the commission shall meet and exercise rulemaking 
424.13 	powers necessary to the implementation and administration of the compact.
424.14 	(b) Any state that joins the compact subsequent to the commission's initial adoption of 
424.15 	the rules shall be subject to the rules as they exist on the date on which the compact becomes 
424.16 	law in that state. Any rule that has been previously adopted by the commission shall have 
424.17 	the full force and effect of law on the day the compact becomes law in that state.
424.18 	(c) Any member state may withdraw from this compact by enacting a statute repealing 
424.19 	the same:
424.20 	(1) a member state's withdrawal shall not take effect until six months after enactment 
424.21 	of the repealing statute; and
424.22 	(2) withdrawal shall not affect the continuing requirement of the withdrawing state's 
424.23 	physical therapy licensing board to comply with the investigative and adverse action reporting 
424.24 	requirements of this compact prior to the effective date of withdrawal.
424.25 	(d) Nothing contained in this compact shall be construed to invalidate or prevent any 
424.26 	physical therapy licensure agreement or other cooperative arrangement between a member 
424.27 	state and a nonmember state that does not conflict with the provisions of this compact.
424.28 	(e) This compact may be amended by the member states. No amendment to this compact 
424.29 	shall become effective and binding upon any member state until it is enacted into the laws 
424.30 	of all member states.
424.31 	ARTICLE XII
424.32 	CONSTRUCTION AND SEVERABILITY
425.1 	This compact shall be liberally construed so as to effectuate the purposes thereof. The 
425.2 	provisions of this compact shall be severable and if any phrase, clause, sentence, or provision 
425.3 	of this compact is declared to be contrary to the constitution of any party state or of the 
425.4 	United States or the applicability thereof to any government, agency, person, or circumstance 
425.5 	is held invalid, the validity of the remainder of this compact and the applicability thereof 
425.6 	to any government, agency, person, or circumstance shall not be affected thereby. If this 
425.7 	compact shall be held contrary to the constitution of any party state, the compact shall 
425.8 	remain in full force and effect as to the remaining party states and in full force and effect 
425.9 	as to the party state affected as to all severable matters.

425.10 	EFFECTIVE DATE. This section is effective the day following final enactment. The 
425.11 	Board of Physical Therapy must publish the effective date of the compact in the State 
425.12 	Register and on the board's website.

425.13 	ARTICLE 29
425.14 	LICENSED PROFESSIONAL COUNSELOR COMPACT

425.15 	Section 1. [148B.75] LICENSED PROFESSIONAL COUNSELOR INTERSTATE 
425.16 	COMPACT.
425.17 	The licensed professional counselor interstate compact is enacted into law and entered 
425.18 	into with all other jurisdictions legally joining in it, in the form substantially specified in 
425.19 	this section.
425.20 	ARTICLE I
425.21 	TITLE
425.22 	This statute shall be known and cited as the professional counselors licensure compact.
425.23 	ARTICLE II
425.24 	DEFINITIONS
425.25 	(a) As used in this compact, and except as otherwise provided, the following definitions 
425.26 	shall apply.
425.27 	(b) "Active duty military" means full-time duty status in the active uniformed service 
425.28 	of the United States, including members of the national guard and reserve on active duty 
425.29 	orders pursuant to United States Code, title 10, chapters 1209 and 1211.
425.30 	(c) "Adverse action" means any administrative, civil, equitable, or criminal action 
425.31 	permitted by a state's laws which is imposed by a licensing board or other authority against 
426.1 	a licensed professional counselor, including actions against an individual's license or privilege 
426.2 	to practice such as revocation, suspension, probation, monitoring of the licensee, limitation 
426.3 	on the licensee's practice, or any other encumbrance on licensure affecting a licensed 
426.4 	professional counselor's authorization to practice, including issuance of a cease and desist 
426.5 	action.
426.6 	(d) "Alternative program" means a non-disciplinary monitoring or practice remediation 
426.7 	process approved by a professional counseling licensing board to address impaired 
426.8 	practitioners.
426.9 	(e) "Continuing competence" and "continuing education" means a requirement, as a 
426.10 	condition of license renewal, to provide evidence of participation in, or completion of, 
426.11 	educational and professional activities relevant to practice or area of work.
426.12 	(f) "Counseling compact commission" or "commission" means the national administrative 
426.13 	body whose membership consists of all states that have enacted the compact.
426.14 	(g) "Current significant investigative information" means:
426.15 	(1) investigative information that a licensing board, after a preliminary inquiry that 
426.16 	includes notification and an opportunity for the licensed professional counselor to respond, 
426.17 	if required by state law, has reason to believe is not groundless and, if proved true, would 
426.18 	indicate more than a minor infraction; or
426.19 	(2) investigative information that indicates that the licensed professional counselor 
426.20 	represents an immediate threat to public health and safety regardless of whether the licensed 
426.21 	professional counselor has been notified and had an opportunity to respond.
426.22 	(h) "Data system" means a repository of information about licensees, including but not 
426.23 	limited to continuing education, examination, licensure, investigative, privilege to practice, 
426.24 	and adverse action information.
426.25 	(i) "Encumbered license" means a license in which an adverse action restricts the practice 
426.26 	of licensed professional counseling by the licensee and said adverse action has been reported 
426.27 	to the National Practitioners Data Bank (NPDB).
426.28 	(j) "Encumbrance" means a revocation or suspension of, or any limitation on, the full 
426.29 	and unrestricted practice of licensed professional counseling by a licensing board.
426.30 	(k) "Executive committee" means a group of directors elected or appointed to act on 
426.31 	behalf of, and within the powers granted to them by, the commission.
426.32 	(l) "Home state" means the member state that is the licensee's primary state of residence.
427.1 	(m) "Impaired practitioner" means an individual who has a condition that may impair 
427.2 	their ability to practice as a licensed professional counselor without some type of intervention 
427.3 	and may include but is not limited to alcohol and drug dependence, mental health impairment, 
427.4 	and neurological or physical impairment.
427.5 	(n) "Investigative information" means information, records, and documents received or 
427.6 	generated by a professional counseling licensing board pursuant to an investigation.
427.7 	(o) "Jurisprudence requirement," if required by a member state, means the assessment 
427.8 	of an individual's knowledge of the laws and rules governing the practice of professional 
427.9 	counseling in a state.
427.10 	(p) "Licensed professional counselor" means a counselor licensed by a member state, 
427.11 	regardless of the title used by that state, to independently assess, diagnose, and treat 
427.12 	behavioral health conditions.
427.13 	(q) "Licensee" means an individual who currently holds an authorization from the state 
427.14 	to practice as a licensed professional counselor.
427.15 	(r) "Licensing board" means the agency of a state, or equivalent, that is responsible for 
427.16 	the licensing and regulation of licensed professional counselors.
427.17 	(s) "Member state" means a state that has enacted the compact.
427.18 	(t) "Privilege to practice" means a legal authorization, which is equivalent to a license, 
427.19 	permitting the practice of professional counseling in a remote state.
427.20 	(u) "Professional counseling" means the assessment, diagnosis, and treatment of 
427.21 	behavioral health conditions by a licensed professional counselor.
427.22 	(v) "Remote state" means a member state other than the home state, where a licensee is 
427.23 	exercising or seeking to exercise the privilege to practice.
427.24 	(w) "Rule" means a regulation promulgated by the commission that has the force of law.
427.25 	(x) "Single state license" means a licensed professional counselor license issued by a 
427.26 	member state that authorizes practice only within the issuing state and does not include a 
427.27 	privilege to practice in any other member state.
427.28 	(y) "State" means any state, commonwealth, district, or territory of the United States 
427.29 	that regulates the practice of professional counseling.
427.30 	(z) "Telehealth" means the application of telecommunication technology to deliver 
427.31 	professional counseling services remotely to assess, diagnose, and treat behavioral health 
427.32 	conditions.
428.1 	(aa) "Unencumbered license" means a license that authorizes a licensed professional 
428.2 	counselor to engage in the full and unrestricted practice of professional counseling.
428.3 	ARTICLE III
428.4 	STATE PARTICIPATION IN THE COMPACT
428.5 	(a) To participate in the compact, a state must currently:
428.6 	(1) license and regulate licensed professional counselors;
428.7 	(2) require licensees to pass a nationally recognized exam approved by the commission;
428.8 	(3) require licensees to have a 60 semester-hour or 90 quarter-hour master's degree in 
428.9 	counseling or 60 semester-hours or 90 quarter-hours of graduate coursework including the 
428.10 	following topic areas:
428.11 	(i) professional counseling orientation and ethical practice;
428.12 	(ii) social and cultural diversity;
428.13 	(iii) human growth and development;
428.14 	(iv) career development;
428.15 	(v) counseling and helping relationships;
428.16 	(vi) group counseling and group work;
428.17 	(vii) diagnosis and treatment; assessment and testing;
428.18 	(viii) research and program evaluation; and
428.19 	(ix) other areas as determined by the commission;
428.20 	(4) require licensees to complete a supervised postgraduate professional experience as 
428.21 	defined by the commission; and
428.22 	(5) have a mechanism in place for receiving and investigating complaints about licensees.
428.23 	(b) A member state shall:
428.24 	(1) participate fully in the commission's data system, including using the commission's 
428.25 	unique identifier as defined in rules;
428.26 	(2) notify the commission, in compliance with the terms of the compact and rules, of 
428.27 	any adverse action or the availability of investigative information regarding a licensee;
428.28 	(3) implement or utilize procedures for considering the criminal history records of 
428.29 	applicants for an initial privilege to practice. These procedures shall include the submission 
429.1 	of fingerprints or other biometric-based information by applicants for the purpose of obtaining 
429.2 	an applicant's criminal history record information from the Federal Bureau of Investigation 
429.3 	and the agency responsible for retaining that state's criminal records;
429.4 	(i) a member state must fully implement a criminal background check requirement, 
429.5 	within a time frame established by rule, by receiving the results of the Federal Bureau of 
429.6 	Investigation record search and shall use the results in making licensure decisions; and
429.7 	(ii) communication between a member state, the commission, and among member states 
429.8 	regarding the verification of eligibility for licensure through the compact shall not include 
429.9 	any information received from the Federal Bureau of Investigation relating to a federal 
429.10 	criminal records check performed by a member state under Public Law 92-544;
429.11 	(4) comply with the rules of the commission;
429.12 	(5) require an applicant to obtain or retain a license in the home state and meet the home 
429.13 	state's qualifications for licensure or renewal of licensure, as well as all other applicable 
429.14 	state laws;
429.15 	(6) grant the privilege to practice to a licensee holding a valid unencumbered license in 
429.16 	another member state in accordance with the terms of the compact and rules; and
429.17 	(7) provide for the attendance of the state's commissioner to the counseling compact 
429.18 	commission meetings.
429.19 	(c) Member states may charge a fee for granting the privilege to practice.
429.20 	(d) Individuals not residing in a member state shall continue to be able to apply for a 
429.21 	member state's single state license as provided under the laws of each member state. However, 
429.22 	the single state license granted to these individuals shall not be recognized as granting a 
429.23 	privilege to practice professional counseling in any other member state.
429.24 	(e) Nothing in this compact shall affect the requirements established by a member state 
429.25 	for the issuance of a single state license.
429.26 	(f) A license issued to a licensed professional counselor by a home state to a resident in 
429.27 	that state shall be recognized by each member state as authorizing a licensed professional 
429.28 	counselor to practice professional counseling, under a privilege to practice, in each member 
429.29 	state.
429.30 	ARTICLE IV
429.31 	PRIVILEGE TO PRACTICE
430.1 	(a) To exercise the privilege to practice under the terms and provisions of the compact, 
430.2 	the licensee shall:
430.3 	(1) hold a license in the home state;
430.4 	(2) have a valid United States Social Security number or national practitioner identifier;
430.5 	(3) be eligible for a privilege to practice in any member state in accordance with this 
430.6 	article, paragraphs (d), (g), and (h);
430.7 	(4) have not had any encumbrance or restriction against any license or privilege to 
430.8 	practice within the previous two years;
430.9 	(5) notify the commission that the licensee is seeking the privilege to practice within a 
430.10 	remote state(s);
430.11 	(6) pay any applicable fees, including any state fee, for the privilege to practice;
430.12 	(7) meet any continuing competence or education requirements established by the home 
430.13 	state;
430.14 	(8) meet any jurisprudence requirements established by the remote state in which the 
430.15 	licensee is seeking a privilege to practice; and
430.16 	(9) report to the commission any adverse action, encumbrance, or restriction on license 
430.17 	taken by any nonmember state within 30 days from the date the action is taken.
430.18 	(b) The privilege to practice is valid until the expiration date of the home state license. 
430.19 	The licensee must comply with the requirements of this article, paragraph (a), to maintain 
430.20 	the privilege to practice in the remote state.
430.21 	(c) A licensee providing professional counseling in a remote state under the privilege 
430.22 	to practice shall adhere to the laws and regulations of the remote state.
430.23 	(d) A licensee providing professional counseling services in a remote state is subject to 
430.24 	that state's regulatory authority. A remote state may, in accordance with due process and 
430.25 	that state's laws, remove a licensee's privilege to practice in the remote state for a specific 
430.26 	period of time, impose fines, or take any other necessary actions to protect the health and 
430.27 	safety of its citizens. The licensee may be ineligible for a privilege to practice in any member 
430.28 	state until the specific time for removal has passed and all fines are paid.
430.29 	(e) If a home state license is encumbered, the licensee shall lose the privilege to practice 
430.30 	in any remote state until the following occur:
430.31 	(1) the home state license is no longer encumbered; and
431.1 	(2) have not had any encumbrance or restriction against any license or privilege to 
431.2 	practice within the previous two years.
431.3 	(f) Once an encumbered license in the home state is restored to good standing, the 
431.4 	licensee must meet the requirements of this article, paragraph (a), to obtain a privilege to 
431.5 	practice in any remote state.
431.6 	(g) If a licensee's privilege to practice in any remote state is removed, the individual 
431.7 	may lose the privilege to practice in all other remote states until the following occur:
431.8 	(1) the specific period of time for which the privilege to practice was removed has ended;
431.9 	(2) all fines have been paid; and
431.10 	(3) have not had any encumbrance or restriction against any license or privilege to 
431.11 	practice within the previous two years.
431.12 	(h) Once the requirements of this article, paragraph (g), have been met, the licensee must 
431.13 	meet the requirements in this article, paragraph (a), to obtain a privilege to practice in a 
431.14 	remote state.
431.15 	ARTICLE V
431.16 	OBTAINING A NEW HOME STATE LICENSE BASED ON A PRIVILEGE TO 
431.17 	PRACTICE
431.18 	(a) A licensed professional counselor may hold a home state license, which allows for 
431.19 	a privilege to practice in other member states, in only one member state at a time.
431.20 	(b) If a licensed professional counselor changes primary state of residence by moving 
431.21 	between two member states:
431.22 	(1) the licensed professional counselor shall file an application for obtaining a new home 
431.23 	state license based on a privilege to practice, pay all applicable fees, and notify the current 
431.24 	and new home state in accordance with applicable rules adopted by the commission;
431.25 	(2) upon receipt of an application for obtaining a new home state license by virtue of a 
431.26 	privilege to practice, the new home state shall verify that the licensed professional counselor 
431.27 	meets the pertinent criteria outlined in article IV via the data system, without need for 
431.28 	primary source verification, except for:
431.29 	(i) a Federal Bureau of Investigation fingerprint-based criminal background check if not 
431.30 	previously performed or updated pursuant to applicable rules adopted by the commission 
431.31 	in accordance with Public Law 92-544;
432.1 	(ii) other criminal background checks as required by the new home state; and
432.2 	(iii) completion of any requisite jurisprudence requirements of the new home state;
432.3 	(3) the former home state shall convert the former home state license into a privilege to 
432.4 	practice once the new home state has activated the new home state license in accordance 
432.5 	with applicable rules adopted by the commission;
432.6 	(4) notwithstanding any other provision of this compact, if the licensed professional 
432.7 	counselor cannot meet the criteria in article VI, the new home state may apply its 
432.8 	requirements for issuing a new single state license; and
432.9 	(5) the licensed professional counselor shall pay all applicable fees to the new home 
432.10 	state in order to be issued a new home state license.
432.11 	(c) If a licensed professional counselor changes primary state of residence by moving 
432.12 	from a member state to a nonmember state, or from a nonmember state to a member state, 
432.13 	the state criteria shall apply for issuance of a single state license in the new state.
432.14 	(d) Nothing in this compact shall interfere with a licensee's ability to hold a single state 
432.15 	license in multiple states, however, for the purposes of this compact, a licensee shall have 
432.16 	only one home state license.
432.17 	(e) Nothing in this compact shall affect the requirements established by a member state 
432.18 	for the issuance of a single state license.
432.19 	ARTICLE VI
432.20 	ACTIVE DUTY MILITARY PERSONNEL OR THEIR SPOUSES
432.21 	Active duty military personnel, or their spouse, shall designate a home state where the 
432.22 	individual has a current license in good standing. The individual may retain the home state 
432.23 	designation during the period the service member is on active duty. Subsequent to designating 
432.24 	a home state, the individual shall only change their home state through application for 
432.25 	licensure in the new state or through the process outlined in article V.
432.26 	ARTICLE VII
432.27 	COMPACT PRIVILEGE TO PRACTICE TELEHEALTH
432.28 	(a) Member states shall recognize the right of a licensed professional counselor, licensed 
432.29 	by a home state in accordance with article III and under rules promulgated by the commission, 
432.30 	to practice professional counseling in any member state via telehealth under a privilege to 
432.31 	practice as provided in the compact and rules promulgated by the commission.
433.1 	(b) A licensee providing professional counseling services in a remote state under the 
433.2 	privilege to practice shall adhere to the laws and regulations of the remote state.
433.3 	ARTICLE VIII
433.4 	ADVERSE ACTIONS
433.5 	(a) In addition to the other powers conferred by state law, a remote state shall have the 
433.6 	authority, in accordance with existing state due process law, to:
433.7 	(1) take adverse action against a licensed professional counselor's privilege to practice 
433.8 	within that member state; and
433.9 	(2) issue subpoenas for both hearings and investigations that require the attendance and 
433.10 	testimony of witnesses as well as the production of evidence. Subpoenas issued by a licensing 
433.11 	board in a member state for the attendance and testimony of witnesses or the production of 
433.12 	evidence from another member state shall be enforced in the latter state by any court of 
433.13 	competent jurisdiction according to the practice and procedure of that court applicable to 
433.14 	subpoenas issued in proceedings pending before it. The issuing authority shall pay any 
433.15 	witness fees, travel expenses, mileage, and other fees required by the service statutes of the 
433.16 	state in which the witnesses or evidence are located.
433.17 	(b) Only the home state shall have the power to take adverse action against a licensed 
433.18 	professional counselor's license issued by the home state.
433.19 	(c) For purposes of taking adverse action, the home state shall give the same priority 
433.20 	and effect to reported conduct received from a member state as it would if the conduct had 
433.21 	occurred within the home state. In so doing, the home state shall apply its own state laws 
433.22 	to determine appropriate action.
433.23 	(d) The home state shall complete any pending investigations of a licensed professional 
433.24 	counselor who changes primary state of residence during the course of the investigations. 
433.25 	The home state shall also have the authority to take appropriate action and shall promptly 
433.26 	report the conclusions of the investigations to the administrator of the data system. The 
433.27 	administrator of the coordinated licensure information system shall promptly notify the new 
433.28 	home state of any adverse actions.
433.29 	(e) A member state, if otherwise permitted by state law, may recover from the affected 
433.30 	licensed professional counselor the costs of investigations and dispositions of cases resulting 
433.31 	from any adverse action taken against that licensed professional counselor.
434.1 	(f) A member state may take adverse action based on the factual findings of the remote 
434.2 	state, provided that the member state follows its own procedures for taking the adverse 
434.3 	action.
434.4 	(g) Joint investigations:
434.5 	(1) in addition to the authority granted to a member state by its respective professional 
434.6 	counseling practice act or other applicable state law, any member state may participate with 
434.7 	other member states in joint investigations of licensees; and
434.8 	(2) member states shall share any investigative, litigation, or compliance materials in 
434.9 	furtherance of any joint or individual investigation initiated under the compact.
434.10 	(h) If adverse action is taken by the home state against the license of a licensed 
434.11 	professional counselor, the licensed professional counselor's privilege to practice in all other 
434.12 	member states shall be deactivated until all encumbrances have been removed from the 
434.13 	state license. All home state disciplinary orders that impose adverse action against the license 
434.14 	of a licensed professional counselor shall include a statement that the licensed professional 
434.15 	counselor's privilege to practice is deactivated in all member states during the pendency of 
434.16 	the order.
434.17 	(i) If a member state takes adverse action, it shall promptly notify the administrator of 
434.18 	the data system. The administrator of the data system shall promptly notify the home state 
434.19 	of any adverse actions by remote states.
434.20 	(j) Nothing in this compact shall override a member state's decision that participation 
434.21 	in an alternative program may be used in lieu of adverse action.
434.22 	ARTICLE IX
434.23 	ESTABLISHMENT OF COUNSELING COMPACT COMMISSION
434.24 	(a) The compact member states hereby create and establish a joint public agency known 
434.25 	as the counseling compact commission:
434.26 	(1) the commission is an instrumentality of the compact states;
434.27 	(2) except as provided under paragraph (i), venue is proper and judicial proceedings by 
434.28 	or against the commission shall be brought solely and exclusively in a court of competent 
434.29 	jurisdiction where the principal office of the commission is located. The commission may 
434.30 	waive venue and jurisdictional defenses to the extent it adopts or consents to participate in 
434.31 	alternative dispute resolution proceedings; and
434.32 	(3) nothing in this compact shall be construed to be a waiver of sovereign immunity.
435.1 	(b) Membership, voting, and meetings:
435.2 	(1) each member state shall have and be limited to one delegate selected by that member 
435.3 	state's licensing board;
435.4 	(2) the delegate shall be either:
435.5 	(i) a current member of the licensing board at the time of appointment who is a licensed 
435.6 	professional counselor or public member; or
435.7 	(ii) an administrator of the licensing board;
435.8 	(3) any delegate may be removed or suspended from office as provided by the law of 
435.9 	the state from which the delegate is appointed;
435.10 	(4) the member state licensing board shall fill any vacancy occurring on the commission 
435.11 	within 60 days;
435.12 	(5) each delegate shall be entitled to one vote with regard to the promulgation of rules 
435.13 	and creation of bylaws and shall otherwise have an opportunity to participate in the business 
435.14 	and affairs of the commission;
435.15 	(6) a delegate shall vote in person or by such other means as provided in the bylaws. 
435.16 	The bylaws may provide for delegates' participation in meetings by telephone or other means 
435.17 	of communication;
435.18 	(7) the commission shall meet at least once during each calendar year. Additional 
435.19 	meetings shall be held as set forth in the bylaws; and
435.20 	(8) the commission shall by rule establish a term of office for delegates and may by rule 
435.21 	establish term limits.
435.22 	(c) The commission shall have the following powers and duties:
435.23 	(1) establish the fiscal year of the commission;
435.24 	(2) establish bylaws;
435.25 	(3) maintain its financial records in accordance with the bylaws;
435.26 	(4) meet and take such actions as are consistent with the provisions of this compact and 
435.27 	the bylaws;
435.28 	(5) promulgate rules which shall be binding to the extent and in the manner provided 
435.29 	for in the compact;
436.1 	(6) bring and prosecute legal proceedings or actions in the name of the commission, 
436.2 	provided that the standing of any state licensing board to sue or be sued under applicable 
436.3 	law shall not be affected;
436.4 	(7) purchase and maintain insurance and bonds;
436.5 	(8) borrow, accept, or contract for services of personnel, including but not limited to 
436.6 	employees of a member state;
436.7 	(9) hire employees, elect or appoint officers, fix compensation, define duties, grant such 
436.8 	individuals appropriate authority to carry out the purposes of the compact, and establish the 
436.9 	commission's personnel policies and programs relating to conflicts of interest, qualifications 
436.10 	of personnel, and other related personnel matters;
436.11 	(10) accept any and all appropriate donations and grants of money, equipment, supplies, 
436.12 	materials, and services and to receive, utilize, and dispose of the same; provided that at all 
436.13 	times the commission shall avoid any appearance of impropriety and conflict of interest;
436.14 	(11) lease, purchase, accept appropriate gifts or donations of, or otherwise to own, hold, 
436.15 	improve, or use any property, real, personal, or mixed; provided that at all times the 
436.16 	commission shall avoid any appearance of impropriety;
436.17 	(12) sell convey, mortgage, pledge, lease, exchange, abandon, or otherwise dispose of 
436.18 	any property real, personal, or mixed;
436.19 	(13) establish a budget and make expenditures;
436.20 	(14) borrow money;
436.21 	(15) appoint committees, including standing committees composed of members, state 
436.22 	regulators, state legislators or their representatives, and consumer representatives, and such 
436.23 	other interested persons as may be designated in this compact and the bylaws;
436.24 	(16) provide and receive information from, and cooperate with, law enforcement agencies;
436.25 	(17) establish and elect an executive committee; and
436.26 	(18) perform such other functions as may be necessary or appropriate to achieve the 
436.27 	purposes of this compact consistent with the state regulation of professional counseling 
436.28 	licensure and practice.
436.29 	(d) The executive committee:
436.30 	(1) the executive committee shall have the power to act on behalf of the commission 
436.31 	according to the terms of this compact;
437.1 	(2) the executive committee shall be composed of up to eleven members:
437.2 	(i) seven voting members who are elected by the commission from the current 
437.3 	membership of the commission;
437.4 	(ii) up to four ex-officio, nonvoting members from four recognized national professional 
437.5 	counselor organizations; and
437.6 	(iii) the ex-officio members will be selected by their respective organizations;
437.7 	(3) the commission may remove any member of the executive committee as provided 
437.8 	in the bylaws;
437.9 	(4) the executive committee shall meet at least annually; and
437.10 	(5) the executive committee shall have the following duties and responsibilities:
437.11 	(i) recommend to the entire commission changes to the rules or bylaws, changes to this 
437.12 	compact legislation, fees paid by compact member states such as annual dues, and any 
437.13 	commission compact fee charged to licensees for the privilege to practice;
437.14 	(ii) ensure compact administration services are appropriately provided, contractual or 
437.15 	otherwise;
437.16 	(iii) prepare and recommend the budget;
437.17 	(iv) maintain financial records on behalf of the commission;
437.18 	(v) monitor compact compliance of member states and provide compliance reports to 
437.19 	the commission;
437.20 	(vi) establish additional committees as necessary; and
437.21 	(vii) other duties as provided in rules or bylaws.
437.22 	(e) Meetings of the commission:
437.23 	(1) all meetings shall be open to the public, and public notice of meetings shall be given 
437.24 	in the same manner as required under the rulemaking provisions in article XI;
437.25 	(2) the commission or the executive committee or other committees of the commission 
437.26 	may convene in a closed, non-public meeting if the commission or executive committee or 
437.27 	other committees of the commission must discuss:
437.28 	(i) non-compliance of a member state with its obligations under the compact;
438.1 	(ii) the employment, compensation, discipline, or other matters, practices, or procedures 
438.2 	related to specific employees or other matters related to the commission's internal personnel 
438.3 	practices and procedures;
438.4 	(iii) current, threatened, or reasonably anticipated litigation;
438.5 	(iv) negotiation of contracts for the purchase, lease, or sale of goods, services, or real 
438.6 	estate;
438.7 	(v) accusing any person of a crime or formally censuring any person;
438.8 	(vi) disclosure of trade secrets or commercial or financial information that is privileged 
438.9 	or confidential;
438.10 	(vii) disclosure of information of a personal nature where disclosure would constitute a 
438.11 	clearly unwarranted invasion of personal privacy;
438.12 	(viii) disclosure of investigative records compiled for law enforcement purposes;
438.13 	(ix) disclosure of information related to any investigative reports prepared by or on 
438.14 	behalf of or for use of the commission or other committee charged with responsibility of 
438.15 	investigation or determination of compliance issues pursuant to the compact; or
438.16 	(x) matters specifically exempted from disclosure by federal or member state statute;
438.17 	(3) if a meeting, or portion of a meeting, is closed pursuant to this provision, the 
438.18 	commission's legal counsel or designee shall certify that the meeting may be closed and 
438.19 	shall reference each relevant exempting provision; and
438.20 	(4) the commission shall keep minutes that fully and clearly describe all matters discussed 
438.21 	in a meeting and shall provide a full and accurate summary of actions taken and the reasons 
438.22 	therefore, including a description of the views expressed. All documents considered in 
438.23 	connection with an action shall be identified in such minutes. All minutes and documents 
438.24 	of a closed meeting shall remain under seal, subject to release by a majority vote of the 
438.25 	commission or order of a court of competent jurisdiction.
438.26 	(f) Financing of the commission:
438.27 	(i) the commission shall pay, or provide for the payment of, the reasonable expenses of 
438.28 	its establishment, organization, and ongoing activities;
438.29 	(ii) the commission may accept any and all appropriate revenue sources, donations, and 
438.30 	grants of money, equipment, supplies, materials, and services;
439.1 	(iii) the commission may levy on and collect an annual assessment from each member 
439.2 	state or impose fees on other parties to cover the cost of the operations and activities of the 
439.3 	commission and its staff, which must be in a total amount sufficient to cover its annual 
439.4 	budget as approved each year for which revenue is not provided by other sources. The 
439.5 	aggregate annual assessment amount shall be allocated based upon a formula to be determined 
439.6 	by the commission, which shall promulgate a rule binding upon all member states;
439.7 	(iv) the commission shall not incur obligations of any kind prior to securing the funds 
439.8 	adequate to meet the same; nor shall the commission pledge the credit of any of the member 
439.9 	states, except by and with the authority of the member state; and
439.10 	(v) the commission shall keep accurate accounts of all receipts and disbursements. The 
439.11 	receipts and disbursements of the commission shall be subject to the audit and accounting 
439.12 	procedures established under its bylaws. However, all receipts and disbursements of funds 
439.13 	handled by the commission shall be audited yearly by a certified or licensed public 
439.14 	accountant, and the report of the audit shall be included in and become part of the annual 
439.15 	report of the commission.
439.16 	(g) Qualified immunity, defense, and indemnification:
439.17 	(1) the members, officers, executive director, employees, and representatives of the 
439.18 	commission shall be immune from suit and liability, either personally or in their official 
439.19 	capacity, for any claim for damage to or loss of property or personal injury or other civil 
439.20 	liability caused by or arising out of any actual or alleged act, error, or omission that occurred, 
439.21 	or that the person against whom the claim is made had a reasonable basis for believing 
439.22 	occurred within the scope of commission employment, duties, or responsibilities; provided 
439.23 	that nothing in this paragraph shall be construed to protect any such person from suit or 
439.24 	liability for any damage, loss, injury, or liability caused by the intentional or willful or 
439.25 	wanton misconduct of that person;
439.26 	(2) the commission shall defend any member, officer, executive director, employee, or 
439.27 	representative of the commission in any civil action seeking to impose liability arising out 
439.28 	of any actual or alleged act, error, or omission that occurred within the scope of commission 
439.29 	employment, duties, or responsibilities, or that the person against whom the claim is made 
439.30 	had a reasonable basis for believing occurred within the scope of commission employment, 
439.31 	duties, or responsibilities; provided that nothing herein shall be construed to prohibit that 
439.32 	person from retaining his or her own counsel; and provided further, that the actual or alleged 
439.33 	act, error, or omission did not result from that person's intentional or willful or wanton 
439.34 	misconduct; and
440.1 	(3) the commission shall indemnify and hold harmless any member, officer, executive 
440.2 	director, employee, or representative of the commission for the amount of any settlement 
440.3 	or judgment obtained against that person arising out of any actual or alleged act, error, or 
440.4 	omission that occurred within the scope of commission employment, duties, or 
440.5 	responsibilities, or that such person had a reasonable basis for believing occurred within 
440.6 	the scope of commission employment, duties, or responsibilities, provided that the actual 
440.7 	or alleged act, error, or omission did not result from the intentional or willful or wanton 
440.8 	misconduct of that person.
440.9 	(h) Notwithstanding paragraph (g), clause (1), the liability of the executive director, 
440.10 	employees, or representatives of the interstate commission, acting within the scope of their 
440.11 	employment or duties, may not exceed the limits of liability set forth under the constitution 
440.12 	and laws of this state for state officials, employees, and agents. This paragraph expressly 
440.13 	incorporates  section 3.736, and neither expands nor limits the rights and remedies provided 
440.14 	under that statute.
440.15 	(i) Except for a claim alleging a violation of this compact, a claim against the commission, 
440.16 	its executive director, employees, or representatives alleging a violation of the constitution 
440.17 	and laws of this state may be brought in any county where the plaintiff resides. Nothing in 
440.18 	this paragraph creates a private right of action.
440.19 	(j) Nothing in this compact shall be construed as a limitation on the liability of any 
440.20 	licensee for professional malpractice or misconduct, which shall be governed solely by any 
440.21 	other applicable state laws.
440.22 	ARTICLE X
440.23 	DATA SYSTEM
440.24 	(a) The commission shall provide for the development, maintenance, operation, and 
440.25 	utilization of a coordinated database and reporting system containing licensure, adverse 
440.26 	action, and investigative information on all licensed individuals in member states.
440.27 	(b) Notwithstanding any other provision of state law to the contrary, a member state 
440.28 	shall submit a uniform data set to the data system on all individuals to whom this compact 
440.29 	is applicable as required by the rules of the commission, including:
440.30 	(1) identifying information;
440.31 	(2) licensure data;
440.32 	(3) adverse actions against a license or privilege to practice;
441.1 	(4) nonconfidential information related to alternative program participation;
441.2 	(5) any denial of application for licensure and the reason for such denial;
441.3 	(6) current significant investigative information; and
441.4 	(7) other information that may facilitate the administration of this compact, as determined 
441.5 	by the rules of the commission.
441.6 	(c) Investigative information pertaining to a licensee in any member state will only be 
441.7 	available to other member states.
441.8 	(d) The commission shall promptly notify all member states of any adverse action taken 
441.9 	against a licensee or an individual applying for a license. Adverse action information 
441.10 	pertaining to a licensee in any member state will be available to any other member state.
441.11 	(e) Member states contributing information to the data system may designate information 
441.12 	that may not be shared with the public without the express permission of the contributing 
441.13 	state.
441.14 	(f) Any information submitted to the data system that is subsequently required to be 
441.15 	expunged by the laws of the member state contributing the information shall be removed 
441.16 	from the data system.
441.17 	ARTICLE XI
441.18 	RULEMAKING
441.19 	(a) The commission shall promulgate reasonable rules in order to effectively and 
441.20 	efficiently achieve the purpose of the compact. Notwithstanding the foregoing, in the event 
441.21 	the commission exercises its rulemaking authority in a manner that is beyond the scope of 
441.22 	the purposes of the compact, or the powers granted hereunder, then such an action by the 
441.23 	commission shall be invalid and have no force or effect.
441.24 	(b) The commission shall exercise its rulemaking powers pursuant to the criteria set 
441.25 	forth in this article and the rules adopted thereunder. Rules and amendments shall become 
441.26 	binding as of the date specified in each rule or amendment.
441.27 	(c) If a majority of the legislatures of the member states rejects a rule, by enactment of 
441.28 	a statute or resolution in the same manner used to adopt the compact within four years of 
441.29 	the date of adoption of the rule, then such rule shall have no further force and effect in any 
441.30 	member state.
441.31 	(d) Rules or amendments to the rules shall be adopted at a regular or special meeting of 
441.32 	the commission.
442.1 	(e) Prior to promulgation and adoption of a final rule or rules by the commission, and 
442.2 	at least thirty days in advance of the meeting at which the rule will be considered and voted 
442.3 	upon, the commission shall file a notice of proposed rulemaking:
442.4 	(1) on the website of the commission or other publicly accessible platform; and
442.5 	(2) on the website of each member state professional counseling licensing board or other 
442.6 	publicly accessible platform or the publication in which each state would otherwise publish 
442.7 	proposed rules.
442.8 	(f) The notice of proposed rulemaking shall include:
442.9 	(1) the proposed time, date, and location of the meeting in which the rule will be 
442.10 	considered and voted upon;
442.11 	(2) the text of the proposed rule or amendment and the reason for the proposed rule;
442.12 	(3) a request for comments on the proposed rule from any interested person; and
442.13 	(4) the manner in which interested persons may submit notice to the commission of their 
442.14 	intention to attend the public hearing and any written comments.
442.15 	(g) Prior to adoption of a proposed rule, the commission shall allow persons to submit 
442.16 	written data, facts, opinions, and arguments, which shall be made available to the public.
442.17 	(h) The commission shall grant an opportunity for a public hearing before it adopts a 
442.18 	rule or amendment if a hearing is requested by:
442.19 	(1) at least 25 persons;
442.20 	(2) a state or federal governmental subdivision or agency; or
442.21 	(3) an association having at least 25 members.
442.22 	(i) If a hearing is held on the proposed rule or amendment, the commission shall publish 
442.23 	the place, time, and date of the scheduled public hearing. If the hearing is held via electronic 
442.24 	means, the commission shall publish the mechanism for access to the electronic hearing:
442.25 	(1) all persons wishing to be heard at the hearing shall notify the executive director of 
442.26 	the commission or other designated member in writing of their desire to appear and testify 
442.27 	at the hearing not less than five business days before the scheduled date of the hearing;
442.28 	(2) hearings shall be conducted in a manner providing each person who wishes to 
442.29 	comment a fair and reasonable opportunity to comment orally or in writing;
442.30 	(3) all hearings will be recorded. A copy of the recording will be made available on 
442.31 	request; and
443.1 	(4) nothing in this article shall be construed as requiring a separate hearing on each rule. 
443.2 	Rules may be grouped for the convenience of the commission at hearings required by this 
443.3 	article.
443.4 	(j) Following the scheduled hearing date, or by the close of business on the scheduled 
443.5 	hearing date if the hearing was not held, the commission shall consider all written and oral 
443.6 	comments received.
443.7 	(k) If no written notice of intent to attend the public hearing by interested parties is 
443.8 	received, the commission may proceed with promulgation of the proposed rule without a 
443.9 	public hearing.
443.10 	(l) The commission shall, by majority vote of all members, take final action on the 
443.11 	proposed rule and shall determine the effective date of the rule, if any, based on the 
443.12 	rulemaking record and the full text of the rule.
443.13 	(m) Upon determination that an emergency exists, the commission may consider and 
443.14 	adopt an emergency rule without prior notice, opportunity for comment, or hearing, provided 
443.15 	that the usual rulemaking procedures provided in the compact and in this article shall be 
443.16 	retroactively applied to the rule as soon as reasonably possible, in no event later than 90 
443.17 	days after the effective date of the rule. For the purposes of this provision, an emergency 
443.18 	rule is one that must be adopted immediately in order to:
443.19 	(1) meet an imminent threat to public health, safety, or welfare;
443.20 	(2) prevent a loss of commission or member state funds;
443.21 	(3) meet a deadline for the promulgation of an administrative rule that is established by 
443.22 	federal law or rule; or
443.23 	(4) protect public health and safety.
443.24 	(n) The commission or an authorized committee of the commission may direct revisions 
443.25 	to a previously adopted rule or amendment for purposes of correcting typographical errors, 
443.26 	errors in format, errors in consistency, or grammatical errors. Public notice of any revisions 
443.27 	shall be posted on the website of the commission. The revision shall be subject to challenge 
443.28 	by any person for a period of thirty days after posting. The revision may be challenged only 
443.29 	on grounds that the revision results in a material change to a rule. A challenge shall be made 
443.30 	in writing and delivered to the chair of the commission prior to the end of the notice period. 
443.31 	If no challenge is made, the revision will take effect without further action. If the revision 
443.32 	is challenged, the revision may not take effect without the approval of the commission.
443.33 	ARTICLE XII
444.1 	OVERSIGHT, DISPUTE RESOLUTION, AND ENFORCEMENT
444.2 	(a) Oversight:
444.3 	(1) the executive, legislative, and judicial branches of state government in each member 
444.4 	state shall enforce this compact and take all actions necessary and appropriate to effectuate 
444.5 	the compact's purposes and intent. The provisions of this compact and the rules promulgated 
444.6 	hereunder shall have standing as statutory law;
444.7 	(2) all courts shall take judicial notice of the compact and the rules in any judicial or 
444.8 	administrative proceeding in a member state pertaining to the subject matter of this compact 
444.9 	which may affect the powers, responsibilities, or actions of the commission; and
444.10 	(3) the commission shall be entitled to receive service of process in any such proceeding 
444.11 	and shall have standing to intervene in such a proceeding for all purposes. Failure to provide 
444.12 	service of process to the commission shall render a judgment or order void as to the 
444.13 	commission, this compact, or promulgated rules.
444.14 	(b) Default, technical assistance, and termination:
444.15 	(1) if the commission determines that a member state has defaulted in the performance 
444.16 	of its obligations or responsibilities under this compact or the promulgated rules, the 
444.17 	commission shall:
444.18 	(i) provide written notice to the defaulting state and other member states of the nature 
444.19 	of the default, the proposed means of curing the default, or any other action to be taken by 
444.20 	the commission; and
444.21 	(ii) provide remedial training and specific technical assistance regarding the default.
444.22 	(c) If a state in default fails to cure the default, the defaulting state may be terminated 
444.23 	from the compact upon an affirmative vote of a majority of the member states, and all rights, 
444.24 	privileges, and benefits conferred by this compact may be terminated on the effective date 
444.25 	of termination. A cure of the default does not relieve the offending state of obligations or 
444.26 	liabilities incurred during the period of default.
444.27 	(d) Termination of membership in the compact shall be imposed only after all other 
444.28 	means of securing compliance have been exhausted. Notice of intent to suspend or terminate 
444.29 	shall be given by the commission to the governor, the majority and minority leaders of the 
444.30 	defaulting state's legislature, and each of the member states.
445.1 	(e) A state that has been terminated is responsible for all assessments, obligations, and 
445.2 	liabilities incurred through the effective date of termination, including obligations that 
445.3 	extend beyond the effective date of termination.
445.4 	(f) The commission shall not bear any costs related to a state that is found to be in default 
445.5 	or that has been terminated from the compact, unless agreed upon in writing between the 
445.6 	commission and the defaulting state.
445.7 	(g) The defaulting state may appeal the action of the commission by petitioning the 
445.8 	United States District Court for the District of Columbia or the federal district where the 
445.9 	commission has its principal offices. The prevailing member shall be awarded all costs of 
445.10 	such litigation, including reasonable attorney fees.
445.11 	(h) Dispute resolution:
445.12 	(1) upon request by a member state, the commission shall attempt to resolve disputes 
445.13 	related to the compact that arise among member states and between member and nonmember 
445.14 	states; and
445.15 	(2) the commission shall promulgate a rule providing for both mediation and binding 
445.16 	dispute resolution for disputes as appropriate.
445.17 	(i) Enforcement:
445.18 	(1) the commission, in the reasonable exercise of its discretion, shall enforce the 
445.19 	provisions and rules of this compact;
445.20 	(2) by majority vote, the commission may initiate legal action in the United States District 
445.21 	Court for the District of Columbia or the federal district where the commission has its 
445.22 	principal offices against a member state in default to enforce compliance with the provisions 
445.23 	of the compact and its promulgated rules and bylaws. The relief sought may include both 
445.24 	injunctive relief and damages. In the event judicial enforcement is necessary, the prevailing 
445.25 	member shall be awarded all costs of such litigation, including reasonable attorney fees; 
445.26 	and
445.27 	(3) the remedies herein shall not be the exclusive remedies of the commission. The 
445.28 	commission may pursue any other remedies available under federal or state law.
445.29 	ARTICLE XIII
445.30 	DATE OF IMPLEMENTATION OF THE COUNSELING COMPACT COMMISSION 
445.31 	AND ASSOCIATED RULES, WITHDRAWAL, AND AMENDMENT
446.1 	(a) The compact shall come into effect on the date on which the compact statute is 
446.2 	enacted into law in the tenth member state. The provisions, which become effective at that 
446.3 	time, shall be limited to the powers granted to the commission relating to assembly and the 
446.4 	promulgation of rules. Thereafter, the commission shall meet and exercise rulemaking 
446.5 	powers necessary to the implementation and administration of the compact.
446.6 	(b) Any state that joins the compact subsequent to the commission's initial adoption of 
446.7 	the rules shall be subject to the rules as they exist on the date on which the compact becomes 
446.8 	law in that state. Any rule that has been previously adopted by the commission shall have 
446.9 	the full force and effect of law on the day the compact becomes law in that state.
446.10 	(c) Any member state may withdraw from this compact by enacting a statute repealing 
446.11 	the same.
446.12 	(1) a member state's withdrawal shall not take effect until six months after enactment 
446.13 	of the repealing statute; and
446.14 	(2) withdrawal shall not affect the continuing requirement of the withdrawing state's 
446.15 	professional counseling licensing board to comply with the investigative and adverse action 
446.16 	reporting requirements of this compact prior to the effective date of withdrawal.
446.17 	(d) Nothing contained in this compact shall be construed to invalidate or prevent any 
446.18 	professional counseling licensure agreement or other cooperative arrangement between a 
446.19 	member state and a nonmember state that does not conflict with the provisions of this 
446.20 	compact.
446.21 	(e) This compact may be amended by the member states. No amendment to this compact 
446.22 	shall become effective and binding upon any member state until it is enacted into the laws 
446.23 	of all member states.
446.24 	ARTICLE XIV
446.25 	CONSTRUCTION AND SEVERABILITY
446.26 	This compact shall be liberally construed so as to effectuate the purposes thereof. The 
446.27 	provisions of this compact shall be severable and if any phrase, clause, sentence, or provision 
446.28 	of this compact is declared to be contrary to the constitution of any member state or of the 
446.29 	United States or the applicability thereof to any government, agency, person, or circumstance 
446.30 	is held invalid, the validity of the remainder of this compact and the applicability thereof 
446.31 	to any government, agency, person, or circumstance shall not be affected thereby. If this 
446.32 	compact shall be held contrary to the constitution of any member state, the compact shall 
447.1 	remain in full force and effect as to the remaining member states and in full force and effect 
447.2 	as to the member state affected as to all severable matters.
447.3 	ARTICLE XV
447.4 	BINDING EFFECT OF COMPACT AND OTHER LAWS
447.5 	(a) A licensee providing professional counseling services in a remote state under the 
447.6 	privilege to practice shall adhere to the laws and regulations, including scope of practice, 
447.7 	of the remote state.
447.8 	(b) Nothing herein prevents the enforcement of any other law of a member state that is 
447.9 	not inconsistent with the compact.
447.10 	(c) Any laws in a member state in conflict with the compact are superseded to the extent 
447.11 	of the conflict.
447.12 	(d) Any lawful actions of the commission, including all rules and bylaws properly 
447.13 	promulgated by the commission, are binding upon the member states.
447.14 	(e) All permissible agreements between the commission and the member states are 
447.15 	binding in accordance with their terms.
447.16 	(f) In the event any provision of the compact exceeds the constitutional limits imposed 
447.17 	on the legislature of any member state, the provision shall be ineffective to the extent of the 
447.18 	conflict with the constitutional provision in question in that member state.

447.19 	ARTICLE 30
447.20 	AUDIOLOGY AND SPEECH-LANGUAGE PATHOLOGY COMPACT

447.21 	Section 1. [148.5185] AUDIOLOGY AND SPEECH-LANGUAGE PATHOLOGY 
447.22 	INTERSTATE COMPACT.
447.23 	The Audiology and Speech-Language Pathology Interstate Compact is enacted into law 
447.24 	and entered into with all other jurisdictions legally joining in it in the form substantially 
447.25 	specified in this section.
447.26 	ARTICLE I
447.27 	DEFINITIONS
447.28 	As used in this compact, and except as otherwise provided, the following definitions 
447.29 	shall apply:
448.1 	(A) "Active duty military" means full-time duty status in the active uniformed service 
448.2 	of the United States, including members of the National Guard and Reserve on active duty 
448.3 	orders pursuant to United States Code, title 10, sections 1209 and 1211.
448.4 	(B) "Adverse action" means any administrative, civil, equitable, or criminal action 
448.5 	permitted by a state's laws which is imposed by a licensing board or other authority against 
448.6 	an audiologist or speech-language pathologist, including actions against an individual's 
448.7 	license or privilege to practice such as revocation, suspension, probation, monitoring of the 
448.8 	licensee, or restriction on the licensee's practice.
448.9 	(C) "Alternative program" means a non-disciplinary monitoring process approved by 
448.10 	an audiology or speech-language pathology licensing board to address impaired practitioners.
448.11 	(D) "Audiologist" means an individual who is licensed by a state to practice audiology.
448.12 	(E) "Audiology" means the care and services provided by a licensed audiologist as set 
448.13 	forth in the member state's statutes and rules.
448.14 	(F) "Audiology and Speech-Language Pathology Compact Commission" or "commission" 
448.15 	means the national administrative body whose membership consists of all states that have 
448.16 	enacted the compact.
448.17 	(G) "Audiology and speech-language pathology licensing board," "audiology licensing 
448.18 	board," "speech-language pathology licensing board," or "licensing board" means the agency 
448.19 	of a state that is responsible for the licensing and regulation of audiologists or 
448.20 	speech-language pathologists or both.
448.21 	(H) "Compact privilege" means the authorization granted by a remote state to allow a 
448.22 	licensee from another member state to practice as an audiologist or speech-language 
448.23 	pathologist in the remote state under its laws and rules. The practice of audiology or 
448.24 	speech-language pathology occurs in the member state where the patient, client, or student 
448.25 	is located at the time of the patient, client, or student encounter.
448.26 	(I) "Current significant investigative information" means investigative information that 
448.27 	a licensing board, after an inquiry or investigation that includes notification and an 
448.28 	opportunity for the audiologist or speech-language pathologist to respond, if required by 
448.29 	state law, has reason to believe is not groundless and, if proved true, would indicate more 
448.30 	than a minor infraction.
448.31 	(J) "Data system" means a repository of information about licensees, including but not 
448.32 	limited to continuing education, examination, licensure, investigation, compact privilege, 
448.33 	and adverse action.
449.1 	(K) "Encumbered license" means a license in which an adverse action restricts the 
449.2 	practice of audiology or speech-language pathology by the licensee and said adverse action 
449.3 	has been reported to the National Practitioners Data Bank (NPDB).
449.4 	(L) "Executive committee" means a group of directors elected or appointed to act on 
449.5 	behalf of, and within the powers granted to them by, the commission.
449.6 	(M) "Home state" means the member state that is the licensee's primary state of residence.
449.7 	(N) "Impaired practitioner" means individuals whose professional practice is adversely 
449.8 	affected by substance abuse, addiction, or other health-related conditions.
449.9 	(O) "Licensee" means an individual who currently holds an authorization from the state 
449.10 	licensing board to practice as an audiologist or speech-language pathologist.
449.11 	(P) "Member state" means a state that has enacted the compact.
449.12 	(Q) "Privilege to practice" means a legal authorization permitting the practice of audiology 
449.13 	or speech-language pathology in a remote state.
449.14 	(R) "Remote state" means a member state other than the home state where a licensee is 
449.15 	exercising or seeking to exercise the compact privilege.
449.16 	(S) "Rule" means a regulation, principle, or directive promulgated by the commission 
449.17 	that has the force of law.
449.18 	(T) "Single-state license" means an audiology or speech-language pathology license 
449.19 	issued by a member state that authorizes practice only within the issuing state and does not 
449.20 	include a privilege to practice in any other member state.
449.21 	(U) "Speech-language pathologist" means an individual who is licensed by a state to 
449.22 	practice speech-language pathology.
449.23 	(V) "Speech-language pathology" means the care and services provided by a licensed 
449.24 	speech-language pathologist as set forth in the member state's statutes and rules.
449.25 	(W) "State" means any state, commonwealth, district, or territory of the United States 
449.26 	of America that regulates the practice of audiology and speech-language pathology.
449.27 	(X) "State practice laws" means a member state's laws, rules, and regulations that govern 
449.28 	the practice of audiology or speech-language pathology, define the scope of audiology or 
449.29 	speech-language pathology practice, and create the methods and grounds for imposing 
449.30 	discipline.
450.1 	(Y) "Telehealth" means the application of telecommunication technology to deliver 
450.2 	audiology or speech-language pathology services at a distance for assessment, intervention, 
450.3 	or consultation.
450.4 	ARTICLE II
450.5 	STATE PARTICIPATION IN THE COMPACT
450.6 	(A) A license issued to an audiologist or speech-language pathologist by a home state 
450.7 	to a resident in that state shall be recognized by each member state as authorizing an 
450.8 	audiologist or speech-language pathologist to practice audiology or speech-language 
450.9 	pathology, under a privilege to practice, in each member state.
450.10 	(B) A state must implement or utilize procedures for considering the criminal history 
450.11 	records of applicants for initial privilege to practice. These procedures shall include the 
450.12 	submission of fingerprints or other biometric-based information by applicants for the purpose 
450.13 	of obtaining an applicant's criminal history record information from the Federal Bureau of 
450.14 	Investigation and the agency responsible for retaining that state's criminal records.
450.15 	(1) A member state must fully implement a criminal background check requirement, 
450.16 	within a time frame established by rule, by receiving the results of the Federal Bureau of 
450.17 	Investigation record search on criminal background checks and use the results in making 
450.18 	licensure decisions.
450.19 	(2) Communication between a member state and the commission and among member 
450.20 	states regarding the verification of eligibility for licensure through the compact shall not 
450.21 	include any information received from the Federal Bureau of Investigation relating to a 
450.22 	federal criminal records check performed by a member state under Public Law 92-544.
450.23 	(C) Upon application for a privilege to practice, the licensing board in the issuing remote 
450.24 	state shall ascertain, through the data system, whether the applicant has ever held, or is the 
450.25 	holder of, a license issued by any other state, whether there are any encumbrances on any 
450.26 	license or privilege to practice held by the applicant, and whether any adverse action has 
450.27 	been taken against any license or privilege to practice held by the applicant.
450.28 	(D) Each member state shall require an applicant to obtain or retain a license in the home 
450.29 	state and meet the home state's qualifications for licensure or renewal of licensure, as well 
450.30 	as all other applicable state laws.
450.31 	(E) An audiologist must:
450.32 	(1) meet one of the following educational requirements:
451.1 	(i) on or before December 31, 2007, have graduated with a master's degree or doctoral 
451.2 	degree in audiology, or equivalent degree regardless of degree name, from a program that 
451.3 	is accredited by an accrediting agency recognized by the Council for Higher Education 
451.4 	Accreditation, or its successor, or by the United States Department of Education and operated 
451.5 	by a college or university accredited by a regional or national accrediting organization 
451.6 	recognized by the board; or
451.7 	(ii) on or after January 1, 2008, have graduated with a doctoral degree in audiology, or 
451.8 	equivalent degree regardless of degree name, from a program that is accredited by an 
451.9 	accrediting agency recognized by the Council for Higher Education Accreditation, or its 
451.10 	successor, or by the United States Department of Education and operated by a college or 
451.11 	university accredited by a regional or national accrediting organization recognized by the 
451.12 	board; or
451.13 	(iii) have graduated from an audiology program that is housed in an institution of higher 
451.14 	education outside of the United States (a) for which the program and institution have been 
451.15 	approved by the authorized accrediting body in the applicable country and (b) the degree 
451.16 	program has been verified by an independent credentials review agency to be comparable 
451.17 	to a state licensing board-approved program;
451.18 	(2) have completed a supervised clinical practicum experience from an accredited 
451.19 	educational institution or its cooperating programs as required by the board;
451.20 	(3) have successfully passed a national examination approved by the commission;
451.21 	(4) hold an active, unencumbered license;
451.22 	(5) not have been convicted or found guilty, and not have entered into an agreed 
451.23 	disposition, of a felony related to the practice of audiology, under applicable state or federal 
451.24 	criminal law; and
451.25 	(6) have a valid United States Social Security or National Practitioner Identification 
451.26 	number.
451.27 	(F) A speech-language pathologist must:
451.28 	(1) meet one of the following educational requirements:
451.29 	(i) have graduated with a master's degree from a speech-language pathology program 
451.30 	that is accredited by an organization recognized by the United States Department of Education 
451.31 	and operated by a college or university accredited by a regional or national accrediting 
451.32 	organization recognized by the board; or
452.1 	(ii) have graduated from a speech-language pathology program that is housed in an 
452.2 	institution of higher education outside of the United States (a) for which the program and 
452.3 	institution have been approved by the authorized accrediting body in the applicable country 
452.4 	and (b) the degree program has been verified by an independent credentials review agency 
452.5 	to be comparable to a state licensing board-approved program;
452.6 	(2) have completed a supervised clinical practicum experience from an educational 
452.7 	institution or its cooperating programs as required by the commission;
452.8 	(3) have completed a supervised postgraduate professional experience as required by 
452.9 	the commission;
452.10 	(4) have successfully passed a national examination approved by the commission;
452.11 	(5) hold an active, unencumbered license;
452.12 	(6) not have been convicted or found guilty, and not have entered into an agreed 
452.13 	disposition, of a felony related to the practice of speech-language pathology, under applicable 
452.14 	state or federal criminal law; and
452.15 	(7) have a valid United States Social Security or National Practitioner Identification 
452.16 	number.
452.17 	(G) The privilege to practice is derived from the home state license.
452.18 	(H) An audiologist or speech-language pathologist practicing in a member state must 
452.19 	comply with the state practice laws of the state in which the client is located at the time 
452.20 	service is provided. The practice of audiology and speech-language pathology shall include 
452.21 	all audiology and speech-language pathology practice as defined by the state practice laws 
452.22 	of the member state in which the client is located. The practice of audiology and 
452.23 	speech-language pathology in a member state under a privilege to practice shall subject an 
452.24 	audiologist or speech-language pathologist to the jurisdiction of the licensing board, the 
452.25 	courts and the laws of the member state in which the client is located at the time service is 
452.26 	provided.
452.27 	(I) Individuals not residing in a member state shall continue to be able to apply for a 
452.28 	member state's single-state license as provided under the laws of each member state. 
452.29 	However, the single-state license granted to these individuals shall not be recognized as 
452.30 	granting the privilege to practice audiology or speech-language pathology in any other 
452.31 	member state. Nothing in this compact shall affect the requirements established by a member 
452.32 	state for the issuance of a single-state license.
452.33 	(J) Member states may charge a fee for granting a compact privilege.
453.1 	(K) Member states must comply with the bylaws and rules and regulations of the 
453.2 	commission.
453.3 	ARTICLE III
453.4 	COMPACT PRIVILEGE
453.5 	(A) To exercise the compact privilege under the terms and provisions of the compact, 
453.6 	the audiologist or speech-language pathologist shall:
453.7 	(1) hold an active license in the home state;
453.8 	(2) have no encumbrance on any state license;
453.9 	(3) be eligible for a compact privilege in any member state in accordance with Article 
453.10 	II;
453.11 	(4) have not had any adverse action against any license or compact privilege within the 
453.12 	previous two years from date of application;
453.13 	(5) notify the commission that the licensee is seeking the compact privilege within a 
453.14 	remote state or states;
453.15 	(6) pay any applicable fees, including any state fee, for the compact privilege; and
453.16 	(7) report to the commission adverse action taken by any nonmember state within 30 
453.17 	days from the date the adverse action is taken.
453.18 	(B) For the purposes of the compact privilege, an audiologist or speech-language 
453.19 	pathologist shall only hold one home state license at a time.
453.20 	(C) Except as provided in Article V, if an audiologist or speech-language pathologist 
453.21 	changes primary state of residence by moving between two member states, the audiologist 
453.22 	or speech-language pathologist must apply for licensure in the new home state, and the 
453.23 	license issued by the prior home state shall be deactivated in accordance with applicable 
453.24 	rules adopted by the commission.
453.25 	(D) The audiologist or speech-language pathologist may apply for licensure in advance 
453.26 	of a change in primary state of residence.
453.27 	(E) A license shall not be issued by the new home state until the audiologist or 
453.28 	speech-language pathologist provides satisfactory evidence of a change in primary state of 
453.29 	residence to the new home state and satisfies all applicable requirements to obtain a license 
453.30 	from the new home state.
454.1 	(F) If an audiologist or speech-language pathologist changes primary state of residence 
454.2 	by moving from a member state to a nonmember state, the license issued by the prior home 
454.3 	state shall convert to a single-state license, valid only in the former home state.
454.4 	(G) The compact privilege is valid until the expiration date of the home state license. 
454.5 	The licensee must comply with the requirements of Article III, (A), to maintain the compact 
454.6 	privilege in the remote state.
454.7 	(H) A licensee providing audiology or speech-language pathology services in a remote 
454.8 	state under the compact privilege shall function within the laws and regulations of the remote 
454.9 	state.
454.10 	(I) A licensee providing audiology or speech-language pathology services in a remote 
454.11 	state is subject to that state's regulatory authority. A remote state may, in accordance with 
454.12 	due process and that state's laws, remove a licensee's compact privilege in the remote state 
454.13 	for a specific period of time, impose fines, or take any other necessary actions to protect 
454.14 	the health and safety of its citizens.
454.15 	(J) If a home state license is encumbered, the licensee shall lose the compact privilege 
454.16 	in any remote state until the following occur:
454.17 	(1) the home state license is no longer encumbered; and
454.18 	(2) two years have elapsed from the date of the adverse action.
454.19 	(K) Once an encumbered license in the home state is restored to good standing, the 
454.20 	licensee must meet the requirements of Article III, (A), to obtain a compact privilege in any 
454.21 	remote state.
454.22 	(L) Once the requirements of Article III, (J), have been met, the licensee must meet the 
454.23 	requirements in Article III, (A), to obtain a compact privilege in a remote state.
454.24 	ARTICLE IV
454.25 	COMPACT PRIVILEGE TO PRACTICE TELEHEALTH
454.26 	Member states shall recognize the right of an audiologist or speech-language pathologist, 
454.27 	licensed by a home state in accordance with Article II and under rules promulgated by the 
454.28 	commission, to practice audiology or speech-language pathology in a member state via 
454.29 	telehealth under a privilege to practice as provided in the compact and rules promulgated 
454.30 	by the commission.
454.31 	ARTICLE V
454.32 	ACTIVE DUTY MILITARY PERSONNEL OR THEIR SPOUSES
455.1 	Active duty military personnel, or their spouse, shall designate a home state where the 
455.2 	individual has a current license in good standing. The individual may retain the home state 
455.3 	designation during the period the service member is on active duty. Subsequent to designating 
455.4 	a home state, the individual shall only change their home state through application for 
455.5 	licensure in the new state.
455.6 	ARTICLE VI
455.7 	ADVERSE ACTIONS
455.8 	(A) In addition to the other powers conferred by state law, a remote state shall have the 
455.9 	authority, in accordance with existing state due process law, to:
455.10 	(1) take adverse action against an audiologist's or speech-language pathologist's privilege 
455.11 	to practice within that member state; and
455.12 	(2) issue subpoenas for both hearings and investigations that require the attendance and 
455.13 	testimony of witnesses as well as the production of evidence. Subpoenas issued by a licensing 
455.14 	board in a member state for the attendance and testimony of witnesses or the production of 
455.15 	evidence from another member state shall be enforced in the latter state by any court of 
455.16 	competent jurisdiction, according to the practice and procedure of that court applicable to 
455.17 	subpoenas issued in proceedings pending before it. The issuing authority shall pay any 
455.18 	witness fees, travel expenses, mileage and other fees required by the service statutes of the 
455.19 	state in which the witnesses or evidence are located.
455.20 	(B) Only the home state shall have the power to take adverse action against an 
455.21 	audiologist's or speech-language pathologist's license issued by the home state.
455.22 	(C) For purposes of taking adverse action, the home state shall give the same priority 
455.23 	and effect to reported conduct received from a member state as it would if the conduct had 
455.24 	occurred within the home state. In so doing, the home state shall apply its own state laws 
455.25 	to determine appropriate action.
455.26 	(D) The home state shall complete any pending investigations of an audiologist or 
455.27 	speech-language pathologist who changes primary state of residence during the course of 
455.28 	the investigations. The home state shall also have the authority to take appropriate action 
455.29 	and shall promptly report the conclusions of the investigations to the administrator of the 
455.30 	data system. The administrator of the data system shall promptly notify the new home state 
455.31 	of any adverse actions.
455.32 	(E) If otherwise permitted by state law, the member state may recover from the affected 
455.33 	audiologist or speech-language pathologist the costs of investigations and disposition of 
456.1 	cases resulting from any adverse action taken against that audiologist or speech-language 
456.2 	pathologist.
456.3 	(F) The member state may take adverse action based on the factual findings of the remote 
456.4 	state, provided that the member state follows the member state's own procedures for taking 
456.5 	the adverse action.
456.6 	(G) Joint Investigations:
456.7 	(1) In addition to the authority granted to a member state by its respective audiology or 
456.8 	speech-language pathology practice act or other applicable state law, any member state may 
456.9 	participate with other member states in joint investigations of licensees.
456.10 	(2) Member states shall share any investigative, litigation, or compliance materials in 
456.11 	furtherance of any joint or individual investigation initiated under the Compact.
456.12 	(H) If adverse action is taken by the home state against an audiologist's or 
456.13 	speech-language pathologist's license, the audiologist's or speech-language pathologist's 
456.14 	privilege to practice in all other member states shall be deactivated until all encumbrances 
456.15 	have been removed from the state license. All home state disciplinary orders that impose 
456.16 	adverse action against an audiologist's or speech-language pathologist's license shall include 
456.17 	a statement that the audiologist's or speech-language pathologist's privilege to practice is 
456.18 	deactivated in all member states during the pendency of the order.
456.19 	(I) If a member state takes adverse action, it shall promptly notify the administrator of 
456.20 	the data system. The administrator of the data system shall promptly notify the home state 
456.21 	of any adverse actions by remote states.
456.22 	(J) Nothing in this compact shall override a member state's decision that participation 
456.23 	in an alternative program may be used in lieu of adverse action.
456.24 	ARTICLE VII
456.25 	ESTABLISHMENT OF THE AUDIOLOGY AND SPEECH-LANGUAGE PATHOLOGY 
456.26 	COMPACT COMMISSION
456.27 	(A) The compact member states hereby create and establish a joint public agency known 
456.28 	as the Audiology and Speech-Language Pathology Compact Commission:
456.29 	(1) The commission is an instrumentality of the compact states.
456.30 	(2) Except as provided under paragraph (H), venue is proper and judicial proceedings 
456.31 	by or against the commission shall be brought solely and exclusively in a court of competent 
456.32 	jurisdiction where the principal office of the commission is located. The commission may 
457.1 	waive venue and jurisdictional defenses to the extent it adopts or consents to participate in 
457.2 	alternative dispute resolution proceedings.
457.3 	(3) Nothing in this compact shall be construed to be a waiver of sovereign immunity.
457.4 	(B) Membership, Voting, and Meetings:
457.5 	(1) Each member state shall have two delegates selected by that member state's licensing 
457.6 	board. The delegates shall be current members of the licensing board. One shall be an 
457.7 	audiologist and one shall be a speech-language pathologist.
457.8 	(2) An additional five delegates, who are either a public member or board administrator 
457.9 	from a state licensing board, shall be chosen by the executive committee from a pool of 
457.10 	nominees provided by the commission at large.
457.11 	(3) Any delegate may be removed or suspended from office as provided by the law of 
457.12 	the state from which the delegate is appointed.
457.13 	(4) The member state board shall fill any vacancy occurring on the commission, within 
457.14 	90 days.
457.15 	(5) Each delegate shall be entitled to one vote with regard to the promulgation of rules 
457.16 	and creation of bylaws and shall otherwise have an opportunity to participate in the business 
457.17 	and affairs of the commission.
457.18 	(6) A delegate shall vote in person or by other means as provided in the bylaws. The 
457.19 	bylaws may provide for delegates' participation in meetings by telephone or other means 
457.20 	of communication.
457.21 	(7) The commission shall meet at least once during each calendar year. Additional 
457.22 	meetings shall be held as set forth in the bylaws.
457.23 	(C) The commission shall have the following powers and duties:
457.24 	(1) establish the fiscal year of the commission;
457.25 	(2) establish bylaws;
457.26 	(3) establish a code of ethics;
457.27 	(4) maintain its financial records in accordance with the bylaws;
457.28 	(5) meet and take actions as are consistent with the provisions of this compact and the 
457.29 	bylaws;
458.1 	(6) promulgate uniform rules to facilitate and coordinate implementation and 
458.2 	administration of this compact. The rules shall have the force and effect of law and shall 
458.3 	be binding in all member states;
458.4 	(7) bring and prosecute legal proceedings or actions in the name of the commission, 
458.5 	provided that the standing of any state audiology or speech-language pathology licensing 
458.6 	board to sue or be sued under applicable law shall not be affected;
458.7 	(8) purchase and maintain insurance and bonds;
458.8 	(9) borrow, accept, or contract for services of personnel, including but not limited to 
458.9 	employees of a member state;
458.10 	(10) hire employees, elect or appoint officers, fix compensation, define duties, grant 
458.11 	individuals appropriate authority to carry out the purposes of the compact, and establish the 
458.12 	commission's personnel policies and programs relating to conflicts of interest, qualifications 
458.13 	of personnel, and other related personnel matters;
458.14 	(11) accept any and all appropriate donations and grants of money, equipment, supplies, 
458.15 	materials, and services and to receive, utilize, and dispose of the same; provided that at all 
458.16 	times the commission shall avoid any appearance of impropriety or conflict of interest;
458.17 	(12) lease, purchase, accept appropriate gifts or donations of, or otherwise own, hold, 
458.18 	improve, or use any property real, personal, or mixed; provided that at all times the 
458.19 	commission shall avoid any appearance of impropriety;
458.20 	(13) sell, convey, mortgage, pledge, lease, exchange, abandon, or otherwise dispose of 
458.21 	any property real, personal, or mixed;
458.22 	(14) establish a budget and make expenditures;
458.23 	(15) borrow money;
458.24 	(16) appoint committees, including standing committees composed of members and 
458.25 	other interested persons as may be designated in this compact and the bylaws;
458.26 	(17) provide and receive information from, and cooperate with, law enforcement agencies;
458.27 	(18) establish and elect an executive committee; and
458.28 	(19) perform other functions as may be necessary or appropriate to achieve the purposes 
458.29 	of this compact consistent with the state regulation of audiology and speech-language 
458.30 	pathology licensure and practice.
458.31 	(D) The Executive Committee:
459.1 	The executive committee shall have the power to act on behalf of the commission 
459.2 	according to the terms of this compact. The executive committee shall be composed of ten 
459.3 	members:
459.4 	(1) seven voting members who are elected by the commission from the current 
459.5 	membership of the commission;
459.6 	(2) two ex officios, consisting of one nonvoting member from a recognized national 
459.7 	audiology professional association and one nonvoting member from a recognized national 
459.8 	speech-language pathology association; and
459.9 	(3) one ex officio, nonvoting member from the recognized membership organization of 
459.10 	the audiology and speech-language pathology licensing boards.
459.11 	(E) The ex officio members shall be selected by their respective organizations.
459.12 	(1) The commission may remove any member of the executive committee as provided 
459.13 	in bylaws.
459.14 	(2) The executive committee shall meet at least annually.
459.15 	(3) The executive committee shall have the following duties and responsibilities:
459.16 	(i) recommend to the entire commission changes to the rules or bylaws, changes to this 
459.17 	compact legislation, fees paid by compact member states such as annual dues, and any 
459.18 	commission compact fee charged to licensees for the compact privilege;
459.19 	(ii) ensure compact administration services are appropriately provided, contractual or 
459.20 	otherwise;
459.21 	(iii) prepare and recommend the budget;
459.22 	(iv) maintain financial records on behalf of the commission;
459.23 	(v) monitor compact compliance of member states and provide compliance reports to 
459.24 	the commission;
459.25 	(vi) establish additional committees as necessary; and
459.26 	(vii) other duties as provided in rules or bylaws.
459.27 	(4) All meetings of the commission shall be open to the public and public notice of 
459.28 	meetings shall be given in the same manner as required under the rulemaking provisions in 
459.29 	Article IX.
460.1 	(5) The commission or the executive committee or other committees of the commission 
460.2 	may convene in a closed, nonpublic meeting if the commission or executive committee or 
460.3 	other committees of the commission must discuss:
460.4 	(i) noncompliance of a member state with its obligations under the compact;
460.5 	(ii) the employment, compensation, discipline, or other matters, practices, or procedures 
460.6 	related to specific employees or other matters related to the commission's internal personnel 
460.7 	practices and procedures;
460.8 	(iii) current, threatened, or reasonably anticipated litigation;
460.9 	(iv) negotiation of contracts for the purchase, lease, or sale of goods, services, or real 
460.10 	estate;
460.11 	(v) accusing any person of a crime or formally censuring any person;
460.12 	(vi) disclosure of trade secrets or commercial or financial information that is privileged 
460.13 	or confidential;
460.14 	(vii) disclosure of information of a personal nature where disclosure would constitute a 
460.15 	clearly unwarranted invasion of personal privacy;
460.16 	(viii) disclosure of investigative records compiled for law enforcement purposes;
460.17 	(ix) disclosure of information related to any investigative reports prepared by or on 
460.18 	behalf of or for use of the commission or other committee charged with responsibility of 
460.19 	investigation or determination of compliance issues pursuant to the compact; or
460.20 	(x) matters specifically exempted from disclosure by federal or member state statute.
460.21 	(6) If a meeting, or portion of a meeting, is closed pursuant to this provision, the 
460.22 	commission's legal counsel or designee shall certify that the meeting may be closed and 
460.23 	shall reference each relevant exempting provision.
460.24 	(7) The commission shall keep minutes that fully and clearly describe all matters 
460.25 	discussed in a meeting and shall provide a full and accurate summary of actions taken, and 
460.26 	the reasons therefore, including a description of the views expressed. All documents 
460.27 	considered in connection with an action shall be identified in minutes. All minutes and 
460.28 	documents of a closed meeting shall remain under seal, subject to release by a majority vote 
460.29 	of the commission or order of a court of competent jurisdiction.
460.30 	(8) Financing of the Commission:
461.1 	(i) The commission shall pay, or provide for the payment of, the reasonable expenses 
461.2 	of its establishment, organization, and ongoing activities.
461.3 	(ii) The commission may accept any and all appropriate revenue sources, donations, and 
461.4 	grants of money, equipment, supplies, materials, and services.
461.5 	(iii) The commission may levy on and collect an annual assessment from each member 
461.6 	state or impose fees on other parties to cover the cost of the operations and activities of the 
461.7 	commission and its staff, which must be in a total amount sufficient to cover its annual 
461.8 	budget as approved each year for which revenue is not provided by other sources. The 
461.9 	aggregate annual assessment amount shall be allocated based upon a formula to be determined 
461.10 	by the commission, which shall promulgate a rule binding upon all member states.
461.11 	(9) The commission shall not incur obligations of any kind prior to securing the funds 
461.12 	adequate to meet the same; nor shall the commission pledge the credit of any of the member 
461.13 	states, except by and with the authority of the member state.
461.14 	(10) The commission shall keep accurate accounts of all receipts and disbursements. 
461.15 	The receipts and disbursements of the commission shall be subject to the audit and accounting 
461.16 	procedures established under its bylaws. However, all receipts and disbursements of funds 
461.17 	handled by the commission shall be audited yearly by a certified or licensed public 
461.18 	accountant, and the report of the audit shall be included in and become part of the annual 
461.19 	report of the commission.
461.20 	(F) Qualified Immunity, Defense, and Indemnification:
461.21 	(1) The members, officers, executive director, employees, and representatives of the 
461.22 	commission shall be immune from suit and liability, either personally or in their official 
461.23 	capacity, for any claim for damage to or loss of property or personal injury or other civil 
461.24 	liability caused by or arising out of any actual or alleged act, error, or omission that occurred, 
461.25 	or that the person against whom the claim is made had a reasonable basis for believing 
461.26 	occurred, within the scope of commission employment, duties, or responsibilities; provided 
461.27 	that nothing in this paragraph shall be construed to protect any person from suit or liability 
461.28 	for any damage, loss, injury, or liability caused by the intentional or willful or wanton 
461.29 	misconduct of that person.
461.30 	(2) The commission shall defend any member, officer, executive director, employee, or 
461.31 	representative of the commission in any civil action seeking to impose liability arising out 
461.32 	of any actual or alleged act, error, or omission that occurred within the scope of commission 
461.33 	employment, duties, or responsibilities, or that the person against whom the claim is made 
461.34 	had a reasonable basis for believing occurred within the scope of commission employment, 
462.1 	duties, or responsibilities; provided that nothing herein shall be construed to prohibit that 
462.2 	person from retaining his or her own counsel; and provided further that the actual or alleged 
462.3 	act, error, or omission did not result from that person's intentional or willful or wanton 
462.4 	misconduct.
462.5 	(3) The commission shall indemnify and hold harmless any member, officer, executive 
462.6 	director, employee, or representative of the commission for the amount of any settlement 
462.7 	or judgment obtained against that person arising out of any actual or alleged act, error, or 
462.8 	omission that occurred within the scope of commission employment, duties, or 
462.9 	responsibilities, or that person had a reasonable basis for believing occurred within the scope 
462.10 	of commission employment, duties, or responsibilities; provided that the actual or alleged 
462.11 	act, error, or omission did not result from the intentional or willful or wanton misconduct 
462.12 	of that person.
462.13 	(G) Notwithstanding paragraph (F), clause (1), the liability of the executive director, 
462.14 	employees, or representatives of the interstate commission, acting within the scope of their 
462.15 	employment or duties, may not exceed the limits of liability set forth under the constitution 
462.16 	and laws of this state for state officials, employees, and agents. This paragraph expressly 
462.17 	incorporates  section 3.736, and neither expands nor limits the rights and remedies provided 
462.18 	under that statute.
462.19 	(H) Except for a claim alleging a violation of this compact, a claim against the 
462.20 	commission, its executive director, employees, or representatives alleging a violation of the 
462.21 	constitution and laws of this state may be brought in any county where the plaintiff resides. 
462.22 	Nothing in this paragraph creates a private right of action.
462.23 	(I) Nothing in this compact shall be construed as a limitation on the liability of any 
462.24 	licensee for professional malpractice or misconduct, which shall be governed solely by any 
462.25 	other applicable state laws.
462.26 	ARTICLE VIII
462.27 	DATA SYSTEM
462.28 	(A) The commission shall provide for the development, maintenance, and utilization of 
462.29 	a coordinated database and reporting system containing licensure, adverse action, and 
462.30 	investigative information on all licensed individuals in member states.
462.31 	(B) Notwithstanding any other provision of state law to the contrary, a member state 
462.32 	shall submit a uniform data set to the data system on all individuals to whom this compact 
462.33 	is applicable as required by the rules of the commission, including:
463.1 	(1) identifying information;
463.2 	(2) licensure data;
463.3 	(3) adverse actions against a license or compact privilege;
463.4 	(4) nonconfidential information related to alternative program participation;
463.5 	(5) any denial of application for licensure, and the reason or reasons for denial; and
463.6 	(6) other information that may facilitate the administration of this compact, as determined 
463.7 	by the rules of the commission.
463.8 	(C) Investigative information pertaining to a licensee in any member state shall only be 
463.9 	available to other member states.
463.10 	(D) The commission shall promptly notify all member states of any adverse action taken 
463.11 	against a licensee or an individual applying for a license. Adverse action information 
463.12 	pertaining to a licensee in any member state shall be available to any other member state.
463.13 	(E) Member states contributing information to the data system may designate information 
463.14 	that may not be shared with the public without the express permission of the contributing 
463.15 	state.
463.16 	(F) Any information submitted to the data system that is subsequently required to be 
463.17 	expunged by the laws of the member state contributing the information shall be removed 
463.18 	from the data system.
463.19 	ARTICLE IX
463.20 	RULEMAKING
463.21 	(A) The commission shall exercise its rulemaking powers pursuant to the criteria set 
463.22 	forth in this article and the rules adopted thereunder. Rules and amendments shall become 
463.23 	binding as of the date specified in each rule or amendment.
463.24 	(B) If a majority of the legislatures of the member states rejects a rule, by enactment of 
463.25 	a statute or resolution in the same manner used to adopt the compact within four years of 
463.26 	the date of adoption of the rule, the rule shall have no further force and effect in any member 
463.27 	state.
463.28 	(C) Rules or amendments to the rules shall be adopted at a regular or special meeting 
463.29 	of the commission.
464.1 	(D) Prior to promulgation and adoption of a final rule or rules by the commission, and 
464.2 	at least 30 days in advance of the meeting at which the rule shall be considered and voted 
464.3 	upon, the commission shall file a notice of proposed rulemaking:
464.4 	(1) on the website of the commission or other publicly accessible platform; and
464.5 	(2) on the website of each member state audiology or speech-language pathology licensing 
464.6 	board or other publicly accessible platform or the publication in which each state would 
464.7 	otherwise publish proposed rules.
464.8 	(E) The notice of proposed rulemaking shall include:
464.9 	(1) the proposed time, date, and location of the meeting in which the rule shall be 
464.10 	considered and voted upon;
464.11 	(2) the text of the proposed rule or amendment and the reason for the proposed rule;
464.12 	(3) a request for comments on the proposed rule from any interested person; and
464.13 	(4) the manner in which interested persons may submit notice to the commission of their 
464.14 	intention to attend the public hearing and any written comments.
464.15 	(F) Prior to the adoption of a proposed rule, the commission shall allow persons to submit 
464.16 	written data, facts, opinions, and arguments, which shall be made available to the public.
464.17 	(G) The commission shall grant an opportunity for a public hearing before it adopts a 
464.18 	rule or amendment if a hearing is requested by:
464.19 	(1) at least 25 persons;
464.20 	(2) a state or federal governmental subdivision or agency; or
464.21 	(3) an association having at least 25 members.
464.22 	(H) If a hearing is held on the proposed rule or amendment, the commission shall publish 
464.23 	the place, time, and date of the scheduled public hearing. If the hearing is held via electronic 
464.24 	means, the commission shall publish the mechanism for access to the electronic hearing.
464.25 	(1) All persons wishing to be heard at the hearing shall notify the executive director of 
464.26 	the commission or other designated member in writing of their desire to appear and testify 
464.27 	at the hearing not less than five business days before the scheduled date of the hearing.
464.28 	(2) Hearings shall be conducted in a manner providing each person who wishes to 
464.29 	comment a fair and reasonable opportunity to comment orally or in writing.
464.30 	(3) All hearings shall be recorded. A copy of the recording shall be made available on 
464.31 	request.
465.1 	(4) Nothing in this Article shall be construed as requiring a separate hearing on each 
465.2 	rule. Rules may be grouped for the convenience of the commission at hearings required by 
465.3 	this Article.
465.4 	(I) Following the scheduled hearing date, or by the close of business on the scheduled 
465.5 	hearing date if the hearing was not held, the commission shall consider all written and oral 
465.6 	comments received.
465.7 	(J) If no written notice of intent to attend the public hearing by interested parties is 
465.8 	received, the commission may proceed with promulgation of the proposed rule without a 
465.9 	public hearing.
465.10 	(K) The commission shall, by majority vote of all members, take final action on the 
465.11 	proposed rule and shall determine the effective date of the rule, if any, based on the 
465.12 	rulemaking record and the full text of the rule.
465.13 	(L) Upon determination that an emergency exists, the commission may consider and 
465.14 	adopt an emergency rule without prior notice, opportunity for comment, or hearing; provided 
465.15 	that the usual rulemaking procedures provided in the compact and in this Article shall be 
465.16 	retroactively applied to the rule as soon as reasonably possible, in no event later than 90 
465.17 	days after the effective date of the rule. For the purposes of this provision, an emergency 
465.18 	rule is one that must be adopted immediately in order to:
465.19 	(1) meet an imminent threat to public health, safety, or welfare;
465.20 	(2) prevent a loss of commission or member state funds; or
465.21 	(3) meet a deadline for the promulgation of an administrative rule that is established by 
465.22 	federal law or rule.
465.23 	(M) The commission or an authorized committee of the commission may direct revisions 
465.24 	to a previously adopted rule or amendment for purposes of correcting typographical errors, 
465.25 	errors in format, errors in consistency, or grammatical errors. Public notice of any revisions 
465.26 	shall be posted on the website of the commission. The revision shall be subject to challenge 
465.27 	by any person for a period of 30 days after posting. The revision may be challenged only 
465.28 	on grounds that the revision results in a material change to a rule. A challenge shall be made 
465.29 	in writing and delivered to the chair of the commission prior to the end of the notice period. 
465.30 	If no challenge is made, the revision shall take effect without further action. If the revision 
465.31 	is challenged, the revision may not take effect without the approval of the commission.
465.32 	ARTICLE X
465.33 	OVERSIGHT, DISPUTE RESOLUTION, AND ENFORCEMENT
466.1 	(A) Dispute Resolution:
466.2 	(1) Upon request by a member state, the commission shall attempt to resolve disputes 
466.3 	related to the compact that arise among member states and between member and nonmember 
466.4 	states.
466.5 	(2) The commission shall promulgate a rule providing for both mediation and binding 
466.6 	dispute resolution for such disputes as appropriate.
466.7 	(B) Enforcement:
466.8 	(1) The commission, in the reasonable exercise of its discretion, shall enforce the 
466.9 	provisions and rules of this compact.
466.10 	(2) By majority vote, the commission may initiate legal action in the United States 
466.11 	District Court for the District of Columbia or the federal district where the commission has 
466.12 	its principal offices against a member state in default to enforce compliance with the 
466.13 	provisions of the compact and its promulgated rules and bylaws. The relief sought may 
466.14 	include both injunctive relief and damages. In the event judicial enforcement is necessary, 
466.15 	the prevailing member shall be awarded all costs of litigation, including reasonable attorney's 
466.16 	fees.
466.17 	(3) The remedies herein shall not be the exclusive remedies of the commission. The 
466.18 	commission may pursue any other remedies available under federal or state law.
466.19 	ARTICLE XI
466.20 	DATE OF IMPLEMENTATION OF THE INTERSTATE COMMISSION FOR 
466.21 	AUDIOLOGY AND SPEECH-LANGUAGE PATHOLOGY PRACTICE AND 
466.22 	ASSOCIATED RULES, WITHDRAWAL, AND AMENDMENT
466.23 	(A) The compact shall come into effect on the date on which the compact statute is 
466.24 	enacted into law in the tenth member state. The provisions, which become effective at that 
466.25 	time, shall be limited to the powers granted to the commission relating to assembly and the 
466.26 	promulgation of rules. Thereafter, the commission shall meet and exercise rulemaking 
466.27 	powers necessary to the implementation and administration of the compact.
466.28 	(B) Any state that joins the compact subsequent to the commission's initial adoption of 
466.29 	the rules shall be subject to the rules as they exist on the date on which the compact becomes 
466.30 	law in that state. Any rule that has been previously adopted by the commission shall have 
466.31 	the full force and effect of law on the day the compact becomes law in that state.
467.1 	(C) Any member state may withdraw from this compact by enacting a statute repealing 
467.2 	the same.
467.3 	(1) A member state's withdrawal shall not take effect until six months after enactment 
467.4 	of the repealing statute.
467.5 	(2) Withdrawal shall not affect the continuing requirement of the withdrawing state's 
467.6 	audiology or speech-language pathology licensing board to comply with the investigative 
467.7 	and adverse action reporting requirements of this compact prior to the effective date of 
467.8 	withdrawal.
467.9 	(D) Nothing contained in this compact shall be construed to invalidate or prevent any 
467.10 	audiology or speech-language pathology licensure agreement or other cooperative 
467.11 	arrangement between a member state and a nonmember state that does not conflict with the 
467.12 	provisions of this compact.
467.13 	(E) This compact may be amended by the member states. No amendment to this compact 
467.14 	shall become effective and binding upon any member state until it is enacted into the laws 
467.15 	of all member states.
467.16 	ARTICLE XII
467.17 	CONSTRUCTION AND SEVERABILITY
467.18 	This compact shall be liberally construed so as to effectuate the purposes thereof. The 
467.19 	provisions of this compact shall be severable and if any phrase, clause, sentence, or provision 
467.20 	of this compact is declared to be contrary to the constitution of any member state or of the 
467.21 	United States or the applicability thereof to any government, agency, person, or circumstance 
467.22 	is held invalid, the validity of the remainder of this compact and the applicability thereof 
467.23 	to any government, agency, person, or circumstance shall not be affected thereby. If this 
467.24 	compact shall be held contrary to the constitution of any member state, the compact shall 
467.25 	remain in full force and effect as to the remaining member states and in full force and effect 
467.26 	as to the member state affected as to all severable matters.
467.27 	ARTICLE XIII
467.28 	BINDING EFFECT OF COMPACT AND OTHER LAWS
467.29 	(A) Nothing herein prevents the enforcement of any other law of a member state that is 
467.30 	not inconsistent with the compact.
467.31 	(B) All laws in a member state in conflict with the compact are superseded to the extent 
467.32 	of the conflict.
468.1 	(C) All lawful actions of the commission, including all rules and bylaws promulgated 
468.2 	by the commission, are binding upon the member states.
468.3 	(D) All agreements between the commission and the member states are binding in 
468.4 	accordance with their terms.
468.5 	(E) In the event any provision of the compact exceeds the constitutional limits imposed 
468.6 	on the legislature of any member state, the provision shall be ineffective to the extent of the 
468.7 	conflict with the constitutional provision in question in that member state.

468.8 	Sec. 2. [148.5186] APPLICATION OF AUDIOLOGY AND SPEECH-LANGUAGE 
468.9 	PATHOLOGY INTERSTATE COMPACT TO EXISTING LAWS.
468.10 		Subdivision 1.Rulemaking. Rules developed by the Audiology and Speech-Language 
468.11 	Pathology Compact Commission under section 148.5185 are not subject to sections 14.05 
468.12 	to 14.389.
468.13 		Subd. 2.Background studies. The commissioner of health is authorized to require an 
468.14 	audiologist or speech-language pathologist licensed in Minnesota as the home state to submit 
468.15 	to a criminal history background check under section 144.0572.

468.16 	ARTICLE 31
468.17 	DENTIST AND DENTAL HYGIENIST COMPACT

468.18 	Section 1. [150A.051] DENTIST AND DENTAL HYGIENIST COMPACT.
468.19 	The dentist and dental hygienist compact is enacted into law and entered into with all 
468.20 	other jurisdictions legally joining in the compact in the form substantially specified in this 
468.21 	section.
468.22 	ARTICLE I
468.23 	TITLE
468.24 	This statute shall be known and cited as the dentist and dental hygienist compact.
468.25 	ARTICLE II
468.26 	DEFINITIONS
468.27 	As used in this compact, unless the context requires otherwise, the following definitions 
468.28 	shall apply:
468.29 	(A) "Active military member" means any person with full-time duty status in the armed 
468.30 	forces of the United States including members of the National Guard and Reserve.
469.1 	(B) "Adverse action" means disciplinary action or encumbrance imposed on a license 
469.2 	or compact privilege by a state licensing authority.
469.3 	(C) "Alternative program" means a nondisciplinary monitoring or practice remediation 
469.4 	process applicable to a dentist or dental hygienist approved by a state licensing authority 
469.5 	of a participating state in which the dentist or dental hygienist is licensed. This includes but 
469.6 	is not limited to programs to which licensees with substance abuse or addiction issues are 
469.7 	referred in lieu of adverse action.
469.8 	(D) "Clinical assessment" means examination or process, required for licensure as a 
469.9 	dentist or dental hygienist as applicable, that provides evidence of clinical competence in 
469.10 	dentistry or dental hygiene.
469.11 	(E) "Commissioner" means the individual appointed by a participating state to serve as 
469.12 	the member of the commission for that participating state.
469.13 	(F) "Compact" means this dentist and dental hygienist compact.
469.14 	(G) "Compact privilege" means the authorization granted by a remote state to allow a 
469.15 	licensee from a participating state to practice as a dentist or dental hygienist in a remote 
469.16 	state.
469.17 	(H) "Continuing professional development" means a requirement as a condition of license 
469.18 	renewal to provide evidence of successful participation in educational or professional 
469.19 	activities relevant to practice or area of work.
469.20 	(I) "Criminal background check" means the submission of fingerprints or other 
469.21 	biometric-based information for a license applicant for the purpose of obtaining that 
469.22 	applicant's criminal history record information, as defined in Code of Federal Regulations, 
469.23 	title 28, section 20.3(d), from the Federal Bureau of Investigation and the state's criminal 
469.24 	history record repository as defined in Code of Federal Regulations, title 28, section 20.3(f).
469.25 	(J) "Data system" means the commission's repository of information about licensees, 
469.26 	including but not limited to examination, licensure, investigative, compact privilege, adverse 
469.27 	action, and alternative program.
469.28 	(K) "Dental hygienist" means an individual who is licensed by a state licensing authority 
469.29 	to practice dental hygiene.
469.30 	(L) "Dentist" means an individual who is licensed by a state licensing authority to practice 
469.31 	dentistry.
470.1 	(M) "Dentist and dental hygienist compact commission" or "commission" means a joint 
470.2 	government agency established by this compact comprised of each state that has enacted 
470.3 	the compact and a national administrative body comprised of a commissioner from each 
470.4 	state that has enacted the compact.
470.5 	(N) "Encumbered license" means a license that a state licensing authority has limited in 
470.6 	any way other than through an alternative program.
470.7 	(O) "Executive board" means the chair, vice chair, secretary, and treasurer and any other 
470.8 	commissioners as may be determined by commission rule or bylaw.
470.9 	(P) "Jurisprudence requirement" means the assessment of an individual's knowledge of 
470.10 	the laws and rules governing the practice of dentistry or dental hygiene, as applicable, in a 
470.11 	state.
470.12 	(Q) "License" means current authorization by a state, other than authorization pursuant 
470.13 	to a compact privilege, or other privilege, for an individual to practice as a dentist or dental 
470.14 	hygienist in that state.
470.15 	(R) "Licensee" means an individual who holds an unrestricted license from a participating 
470.16 	state to practice as a dentist or dental hygienist in that state.
470.17 	(S) "Model compact" means the model for the dentist and dental hygienist compact on 
470.18 	file with the council of state governments or other entity as designated by the commission.
470.19 	(T) "Participating state" means a state that has enacted the compact and been admitted 
470.20 	to the commission in accordance with the provisions herein and commission rules.
470.21 	(U) "Qualifying license" means a license that is not an encumbered license issued by a 
470.22 	participating state to practice dentistry or dental hygiene.
470.23 	(V) "Remote state" means a participating state where a licensee who is not licensed as 
470.24 	a dentist or dental hygienist is exercising or seeking to exercise the compact privilege.
470.25 	(W) "Rule" means a regulation promulgated by an entity that has the force of law.
470.26 	(X) "Scope of practice" means the procedures, actions, and processes a dentist or dental 
470.27 	hygienist licensed in a state is permitted to undertake in that state and the circumstances 
470.28 	under which the licensee is permitted to undertake those procedures, actions, and processes. 
470.29 	Such procedures, actions, and processes and the circumstances under which they may be 
470.30 	undertaken may be established through means, including but not limited to statute, 
470.31 	regulations, case law, and other processes available to the state licensing authority or other 
470.32 	government agency.
471.1 	(Y) "Significant investigative information" means information, records, and documents 
471.2 	received or generated by a state licensing authority pursuant to an investigation for which 
471.3 	a determination has been made that there is probable cause to believe that the licensee has 
471.4 	violated a statute or regulation that is considered more than a minor infraction for which 
471.5 	the state licensing authority could pursue adverse action against the licensee.
471.6 	(Z) "State" means any state, commonwealth, district, or territory of the United States of 
471.7 	America that regulates the practices of dentistry and dental hygiene.
471.8 	(AA) "State licensing authority" means an agency or other entity of a state that is 
471.9 	responsible for the licensing and regulation of dentists or dental hygienists.
471.10 	ARTICLE III
471.11 	STATE PARTICIPATION IN THE COMPACT
471.12 	(A) In order to join the compact and thereafter continue as a participating state, a state 
471.13 	must:
471.14 	(1) enact a compact that is not materially different from the model compact as determined 
471.15 	in accordance with commission rules;
471.16 	(2) participate fully in the commission's data system;
471.17 	(3) have a mechanism in place for receiving and investigating complaints about its 
471.18 	licensees and license applicants;
471.19 	(4) notify the commission, in compliance with the terms of the compact and commission 
471.20 	rules, of any adverse action or the availability of significant investigative information 
471.21 	regarding a licensee and license applicant;
471.22 	(5) fully implement a criminal background check requirement, within a time frame 
471.23 	established by commission rule, by receiving the results of a qualifying criminal background 
471.24 	check;
471.25 	(6) comply with the commission rules applicable to a participating state;
471.26 	(7) accept the national board examinations of the joint commission on national dental 
471.27 	examinations or another examination accepted by commission rule as a licensure 
471.28 	examination;
471.29 	(8) accept for licensure that applicants for a dentist license graduate from a predoctoral 
471.30 	dental education program accredited by the Commission on Dental Accreditation, or another 
471.31 	accrediting agency recognized by the United States Department of Education for the 
472.1 	accreditation of dentistry and dental hygiene education programs, leading to the Doctor of 
472.2 	Dental Surgery (D.D.S.) or Doctor of Dental Medicine (D.M.D.) degree;
472.3 	(9) accept for licensure that applicants for a dental hygienist license graduate from a 
472.4 	dental hygiene education program accredited by the Commission on Dental Accreditation 
472.5 	or another accrediting agency recognized by the United States Department of Education for 
472.6 	the accreditation of dentistry and dental hygiene education programs;
472.7 	(10) require for licensure that applicants successfully complete a clinical assessment;
472.8 	(11) have continuing professional development requirements as a condition for license 
472.9 	renewal; and
472.10 	(12) pay a participation fee to the commission as established by commission rule.
472.11 	(B) Providing alternative pathways for an individual to obtain an unrestricted license 
472.12 	does not disqualify a state from participating in the compact.
472.13 	(C) When conducting a criminal background check, the state licensing authority shall:
472.14 	(1) consider that information in making a licensure decision;
472.15 	(2) maintain documentation of completion of the criminal background check and 
472.16 	background check information to the extent allowed by state and federal law; and
472.17 	(3) report to the commission whether it has completed the criminal background check 
472.18 	and whether the individual was granted or denied a license.
472.19 	(D) A licensee of a participating state who has a qualifying license in that state and does 
472.20 	not hold an encumbered license in any other participating state, shall be issued a compact 
472.21 	privilege in a remote state in accordance with the terms of the compact and commission 
472.22 	rules. If a remote state has a jurisprudence requirement a compact privilege will not be 
472.23 	issued to the licensee unless the licensee has satisfied the jurisprudence requirement.
472.24 	ARTICLE IV
472.25 	COMPACT PRIVILEGE
472.26 	(A) To obtain and exercise the compact privilege under the terms and provisions of the 
472.27 	compact, the licensee shall:
472.28 	(1) have a qualifying license as a dentist or dental hygienist in a participating state;
472.29 	(2) be eligible for a compact privilege in any remote state in accordance with (D), (G), 
472.30 	and (H) of this article;
472.31 	(3) submit to an application process whenever the licensee is seeking a compact privilege;
473.1 	(4) pay any applicable commission and remote state fees for a compact privilege in the 
473.2 	remote state;
473.3 	(5) meet any jurisprudence requirement established by a remote state in which the licensee 
473.4 	is seeking a compact privilege;
473.5 	(6) have passed a National Board Examination of the Joint Commission on National 
473.6 	Dental Examinations or another examination accepted by commission rule;
473.7 	(7) for a dentist, have graduated from a predoctoral dental education program accredited 
473.8 	by the Commission on Dental Accreditation, or another accrediting agency recognized by 
473.9 	the United States Department of Education for the accreditation of dentistry and dental 
473.10 	hygiene education programs, leading to the Doctor of Dental Surgery (D.D.S.) or Doctor 
473.11 	of Dental Medicine (D.M.D.) degree;
473.12 	(8) for a dental hygienist, have graduated from a dental hygiene education program 
473.13 	accredited by the Commission on Dental Accreditation or another accrediting agency 
473.14 	recognized by the United States Department of Education for the accreditation of dentistry 
473.15 	and dental hygiene education programs;
473.16 	(9) have successfully completed a clinical assessment for licensure;
473.17 	(10) report to the commission adverse action taken by any nonparticipating state when 
473.18 	applying for a compact privilege and, otherwise, within 30 days from the date the adverse 
473.19 	action is taken;
473.20 	(11) report to the commission when applying for a compact privilege the address of the 
473.21 	licensee's primary residence and thereafter immediately report to the commission any change 
473.22 	in the address of the licensee's primary residence; and
473.23 	(12) consent to accept service of process by mail at the licensee's primary residence on 
473.24 	record with the commission with respect to any action brought against the licensee by the 
473.25 	commission or a participating state, and consent to accept service of a subpoena by mail at 
473.26 	the licensee's primary residence on record with the commission with respect to any action 
473.27 	brought or investigation conducted by the commission or a participating state.
473.28 	(B) The licensee must comply with the requirements of (A) of this article to maintain 
473.29 	the compact privilege in the remote state. If those requirements are met, the compact privilege 
473.30 	will continue as long as the licensee maintains a qualifying license in the state through which 
473.31 	the licensee applied for the compact privilege and pays any applicable compact privilege 
473.32 	renewal fees.
474.1 	(C) A licensee providing dentistry or dental hygiene in a remote state under the compact 
474.2 	privilege shall function within the scope of practice authorized by the remote state for a 
474.3 	dentist or dental hygienist licensed in that state.
474.4 	(D) A licensee providing dentistry or dental hygiene pursuant to a compact privilege in 
474.5 	a remote state is subject to that state's regulatory authority. A remote state may, in accordance 
474.6 	with due process and that state's laws, by adverse action revoke or remove a licensee's 
474.7 	compact privilege in the remote state for a specific period of time and impose fines or take 
474.8 	any other necessary actions to protect the health and safety of its citizens. If a remote state 
474.9 	imposes an adverse action against a compact privilege that limits the compact privilege, 
474.10 	that adverse action applies to all compact privileges in all remote states. A licensee whose 
474.11 	compact privilege in a remote state is removed for a specified period of time is not eligible 
474.12 	for a compact privilege in any other remote state until the specific time for removal of the 
474.13 	compact privilege has passed and all encumbrance requirements are satisfied.
474.14 	(E) If a license in a participating state is an encumbered license, the licensee shall lose 
474.15 	the compact privilege in a remote state and shall not be eligible for a compact privilege in 
474.16 	any remote state until the license is no longer encumbered.
474.17 	(F) Once an encumbered license in a participating state is restored to good standing, the 
474.18 	licensee must meet the requirements of (A) of this article to obtain a compact privilege in 
474.19 	a remote state.
474.20 	(G) If a licensee's compact privilege in a remote state is removed by the remote state, 
474.21 	the individual shall lose or be ineligible for the compact privilege in any remote state until 
474.22 	the following occur:
474.23 	(1) the specific period of time for which the compact privilege was removed has ended; 
474.24 	and
474.25 	(2) all conditions for removal of the compact privilege have been satisfied.
474.26 	(H) Once the requirements of (G) of this article have been met, the licensee must meet 
474.27 	the requirements in (A) of this article to obtain a compact privilege in a remote state.
474.28 	ARTICLE V
474.29 	ACTIVE MILITARY MEMBER OR THEIR SPOUSES
474.30 	An active military member and their spouse shall not be required to pay to the commission 
474.31 	for a compact privilege the fee otherwise charged by the commission. If a remote state 
474.32 	chooses to charge a fee for a compact privilege, it may choose to charge a reduced fee or 
474.33 	no fee to an active military member and their spouse for a compact privilege.
475.1 	ARTICLE VI
475.2 	ADVERSE ACTIONS
475.3 	(A) A participating state in which a licensee is licensed shall have exclusive authority 
475.4 	to impose adverse action against the qualifying license issued by that participating state.
475.5 	(B) A participating state may take adverse action based on the significant investigative 
475.6 	information of a remote state, so long as the participating state follows its own procedures 
475.7 	for imposing adverse action.
475.8 	(C) Nothing in this compact shall override a participating state's decision that participation 
475.9 	in an alternative program may be used in lieu of adverse action and that such participation 
475.10 	shall remain nonpublic if required by the participating state's laws. Participating states must 
475.11 	require licensees who enter any alternative program in lieu of discipline to agree not to 
475.12 	practice pursuant to a compact privilege in any other participating state during the term of 
475.13 	the alternative program without prior authorization from such other participating state.
475.14 	(D) Any participating state in which a licensee is applying to practice or is practicing 
475.15 	pursuant to a compact privilege may investigate actual or alleged violations of the statutes 
475.16 	and regulations authorizing the practice of dentistry or dental hygiene in any other 
475.17 	participating state in which the dentist or dental hygienist holds a license or compact 
475.18 	privilege.
475.19 	(E) A remote state shall have the authority to:
475.20 	(1) take adverse actions as set forth in article IV, (D), against a licensee's compact 
475.21 	privilege in the state;
475.22 	(2) in furtherance of its rights and responsibilities under the compact and the commission's 
475.23 	rules issue subpoenas for both hearings and investigations that require the attendance and 
475.24 	testimony of witnesses, and the production of evidence. Subpoenas issued by a state licensing 
475.25 	authority in a participating state for the attendance and testimony of witnesses, or the 
475.26 	production of evidence from another participating state, shall be enforced in the latter state 
475.27 	by any court of competent jurisdiction, according to the practice and procedure of that court 
475.28 	applicable to subpoenas issued in proceedings pending before it. The issuing authority shall 
475.29 	pay any witness fees, travel expenses, mileage, and other fees required by the service statutes 
475.30 	of the state where the witnesses or evidence are located; and
475.31 	(3) if otherwise permitted by state law, recover from the licensee the costs of 
475.32 	investigations and disposition of cases resulting from any adverse action taken against that 
475.33 	licensee.
476.1 	(F) Joint Investigations:
476.2 	(1) In addition to the authority granted to a participating state by its dentist or dental 
476.3 	hygienist licensure act or other applicable state law, a participating state may jointly 
476.4 	investigate licensees with other participating states.
476.5 	(2) Participating states shall share any significant investigative information, litigation, 
476.6 	or compliance materials in furtherance of any joint or individual investigation initiated under 
476.7 	the compact.
476.8 	(G) Authority to Continue Investigation:
476.9 	(1) After a licensee's compact privilege in a remote state is terminated, the remote state 
476.10 	may continue an investigation of the licensee that began when the licensee had a compact 
476.11 	privilege in that remote state.
476.12 	(2) If the investigation yields what would be significant investigative information had 
476.13 	the licensee continued to have a compact privilege in that remote state, the remote state 
476.14 	shall report the presence of such information to the data system as required by article VIII, 
476.15 	(B), (6), as if it was significant investigative information.
476.16 	ARTICLE VII
476.17 	ESTABLISHMENT AND OPERATION OF THE COMMISSION
476.18 	(A) The compact participating states hereby create and establish a joint government 
476.19 	agency whose membership consists of all participating states that have enacted the compact. 
476.20 	The commission is an instrumentality of the participating states acting jointly and not an 
476.21 	instrumentality of any one state. The commission shall come into existence on or after the 
476.22 	effective date of the compact as set forth in article XI, (A).
476.23 	(B) Participation, Voting, and Meetings:
476.24 	(1) Each participating state shall have and be limited to one commissioner selected by 
476.25 	that participating state's state licensing authority or, if the state has more than one state 
476.26 	licensing authority, selected collectively by the state licensing authorities.
476.27 	(2) The commissioner shall be a member or designee of such authority or authorities.
476.28 	(3) The commission may by rule or bylaw establish a term of office for commissioners 
476.29 	and may by rule or bylaw establish term limits.
476.30 	(4) The commission may recommend to a state licensing authority or authorities, as 
476.31 	applicable, removal or suspension of an individual as the state's commissioner.
477.1 	(5) A participating state's state licensing authority or authorities, as applicable, shall fill 
477.2 	any vacancy of its commissioner on the commission within 60 days of the vacancy.
477.3 	(6) Each commissioner shall be entitled to one vote on all matters that are voted upon 
477.4 	by the commission.
477.5 	(7) The commission shall meet at least once during each calendar year. Additional 
477.6 	meetings may be held as set forth in the bylaws. The commission may meet by 
477.7 	telecommunication, video conference, or other similar electronic means.
477.8 	(C) The commission shall have the following powers:
477.9 	(1) establish the fiscal year of the commission;
477.10 	(2) establish a code of conduct and conflict of interest policies;
477.11 	(3) adopt rules and bylaws;
477.12 	(4) maintain its financial records in accordance with the bylaws;
477.13 	(5) meet and take such actions as are consistent with the provisions of this compact, the 
477.14 	commission's rules, and the bylaws;
477.15 	(6) initiate and conclude legal proceedings or actions in the name of the commission, 
477.16 	provided that the standing of any state licensing authority to sue or be sued under applicable 
477.17 	law shall not be affected;
477.18 	(7) maintain and certify records and information provided to a participating state as the 
477.19 	authenticated business records of the commission, and designate a person to do so on the 
477.20 	commission's behalf;
477.21 	(8) purchase and maintain insurance and bonds;
477.22 	(9) borrow, accept, or contract for services of personnel, including but not limited to 
477.23 	employees of a participating state;
477.24 	(10) conduct an annual financial review;
477.25 	(11) hire employees, elect or appoint officers, fix compensation, define duties, grant 
477.26 	such individuals appropriate authority to carry out the purposes of the compact, and establish 
477.27 	the commission's personnel policies and programs relating to conflicts of interest, 
477.28 	qualifications of personnel, and other related personnel matters;
477.29 	(12) as set forth in the commission rules, charge a fee to a licensee for the grant of a 
477.30 	compact privilege in a remote state and thereafter, as may be established by commission 
477.31 	rule, charge the licensee a compact privilege renewal fee for each renewal period in which 
478.1 	that licensee exercises or intends to exercise the compact privilege in that remote state. 
478.2 	Nothing herein shall be construed to prevent a remote state from charging a licensee a fee 
478.3 	for a compact privilege or renewals of a compact privilege, or a fee for the jurisprudence 
478.4 	requirement if the remote state imposes such a requirement for the grant of a compact 
478.5 	privilege;
478.6 	(13) accept any and all appropriate gifts, donations, grants of money, other sources of 
478.7 	revenue, equipment, supplies, materials, and services, and receive, utilize, and dispose of 
478.8 	the same; provided that at all times the commission shall avoid any appearance of impropriety 
478.9 	and conflict of interest;
478.10 	(14) lease, purchase, retain, own, hold, improve, or use any property real, personal, or 
478.11 	mixed, or any undivided interest therein;
478.12 	(15) sell, convey, mortgage, pledge, lease, exchange, abandon, or otherwise dispose of 
478.13 	any property real, personal, or mixed;
478.14 	(16) establish a budget and make expenditures;
478.15 	(17) borrow money;
478.16 	(18) appoint committees, including standing committees, which may be composed of 
478.17 	members, state regulators, state legislators or their representatives, and consumer 
478.18 	representatives, and such other interested persons as may be designated in this compact and 
478.19 	the bylaws;
478.20 	(19) provide and receive information from, and cooperate with, law enforcement agencies;
478.21 	(20) elect a chair, vice chair, secretary, and treasurer and such other officers of the 
478.22 	commission as provided in the commission's bylaws;
478.23 	(21) establish and elect an executive board;
478.24 	(22) adopt and provide to the participating states an annual report;
478.25 	(23) determine whether a state's enacted compact is materially different from the model 
478.26 	compact language such that the state would not qualify for participation in the compact; 
478.27 	and
478.28 	(24) perform such other functions as may be necessary or appropriate to achieve the 
478.29 	purposes of this compact.
478.30 	(D) Meetings of the Commission:
479.1 	(1) All meetings of the commission that are not closed pursuant to (D)(4) of this article 
479.2 	shall be open to the public. Notice of public meetings shall be posted on the commission's 
479.3 	website at least 30 days prior to the public meeting.
479.4 	(2) Notwithstanding (D)(1) of this article, the commission may convene an emergency 
479.5 	public meeting by providing at least 24 hours prior notice on the commission's website, and 
479.6 	any other means as provided in the commission's rules, for any of the reasons it may dispense 
479.7 	with notice of proposed rulemaking under article IX, (L). The commission's legal counsel 
479.8 	shall certify that one of the reasons justifying an emergency public meeting has been met.
479.9 	(3) Notice of all commission meetings shall provide the time, date, and location of the 
479.10 	meeting, and if the meeting is to be held or accessible via telecommunication, video 
479.11 	conference, or other electronic means, the notice shall include the mechanism for access to 
479.12 	the meeting through such means.
479.13 	(4) The commission may convene in a closed, nonpublic meeting for the commission 
479.14 	to receive legal advice or to discuss:
479.15 	(i) noncompliance of a participating state with its obligations under the compact;
479.16 	(ii) the employment, compensation, discipline, or other matters, practices, or procedures 
479.17 	related to specific employees or other matters related to the commission's internal personnel 
479.18 	practices and procedures;
479.19 	(iii) current or threatened discipline of a licensee or compact privilege holder by the 
479.20 	commission or by a participating state's licensing authority;
479.21 	(iv) current, threatened, or reasonably anticipated litigation;
479.22 	(v) negotiation of contracts for the purchase, lease, or sale of goods, services, or real 
479.23 	estate;
479.24 	(vi) accusing any person of a crime or formally censuring any person;
479.25 	(vii) trade secrets or commercial or financial information that is privileged or confidential;
479.26 	(viii) information of a personal nature where disclosure would constitute a clearly 
479.27 	unwarranted invasion of personal privacy;
479.28 	(ix) investigative records compiled for law enforcement purposes;
479.29 	(x) information related to any investigative reports prepared by or on behalf of or for 
479.30 	use of the commission or other committee charged with responsibility of investigation or 
479.31 	determination of compliance issues pursuant to the compact;
480.1 	(xi) legal advice;
480.2 	(xii) matters specifically exempted from disclosure to the public by federal or participating 
480.3 	state law; and
480.4 	(xiii) other matters as promulgated by the commission by rule.
480.5 	(5) If a meeting, or portion of a meeting, is closed, the presiding officer shall state that 
480.6 	the meeting will be closed and reference each relevant exempting provision, and such 
480.7 	reference shall be recorded in the minutes.
480.8 	(6) The commission shall keep minutes that fully and clearly describe all matters 
480.9 	discussed in a meeting and shall provide a full and accurate summary of actions taken, and 
480.10 	the reasons therefore, including a description of the views expressed. All documents 
480.11 	considered in connection with an action shall be identified in such minutes. All minutes and 
480.12 	documents of a closed meeting shall remain under seal, subject to release only by a majority 
480.13 	vote of the commission or order of a court of competent jurisdiction.
480.14 	(E) Financing of the Commission:
480.15 	(1) The commission shall pay, or provide for the payment of, the reasonable expenses 
480.16 	of its establishment, organization, and ongoing activities.
480.17 	(2) The commission may accept any and all appropriate sources of revenue, donations, 
480.18 	and grants of money, equipment, supplies, materials, and services.
480.19 	(3) The commission may levy on and collect an annual assessment from each participating 
480.20 	state and impose fees on licensees of participating states when a compact privilege is granted 
480.21 	to cover the cost of the operations and activities of the commission and its staff, which must 
480.22 	be in a total amount sufficient to cover its annual budget as approved each fiscal year for 
480.23 	which sufficient revenue is not provided by other sources. The aggregate annual assessment 
480.24 	amount for participating states shall be allocated based upon a formula that the commission 
480.25 	shall promulgate by rule.
480.26 	(4) The commission shall not incur obligations of any kind prior to securing the funds 
480.27 	adequate to meet the same; nor shall the commission pledge the credit of any participating 
480.28 	state, except by and with the authority of the participating state.
480.29 	(5) The commission shall keep accurate accounts of all receipts and disbursements. The 
480.30 	receipts and disbursements of the commission shall be subject to the financial review and 
480.31 	accounting procedures established under the commission's bylaws. All receipts and 
480.32 	disbursements of funds handled by the commission shall be subject to an annual financial 
481.1 	review by a certified or licensed public accountant, and the report of the financial review 
481.2 	shall be included in and become part of the annual report of the commission.
481.3 	(F) The Executive Board:
481.4 	(1) The executive board shall have the power to act on behalf of the commission according 
481.5 	to the terms of this compact. The powers, duties, and responsibilities of the executive board 
481.6 	shall include:
481.7 	(i) overseeing the day-to-day activities of the administration of the compact including 
481.8 	compliance with the provisions of the compact and the commission's rules and bylaws;
481.9 	(ii) recommending to the commission changes to the rules or bylaws, changes to this 
481.10 	compact legislation, fees charged to compact participating states, fees charged to licensees, 
481.11 	and other fees;
481.12 	(iii) ensuring compact administration services are appropriately provided, including by 
481.13 	contract;
481.14 	(iv) preparing and recommending the budget;
481.15 	(v) maintaining financial records on behalf of the commission;
481.16 	(vi) monitoring compact compliance of participating states and providing compliance 
481.17 	reports to the commission;
481.18 	(vii) establishing additional committees as necessary;
481.19 	(viii) exercising the powers and duties of the commission during the interim between 
481.20 	commission meetings, except for adopting or amending rules, adopting or amending bylaws, 
481.21 	and exercising any other powers and duties expressly reserved to the commission by rule 
481.22 	or bylaw; and
481.23 	(ix) other duties as provided in the rules or bylaws of the commission.
481.24 	(2) The executive board shall be composed of up to seven members:
481.25 	(i) the chair, vice chair, secretary, and treasurer of the commission and any other members 
481.26 	of the commission who serve on the executive board shall be voting members of the executive 
481.27 	board; and
481.28 	(ii) other than the chair, vice chair, secretary, and treasurer, the commission may elect 
481.29 	up to three voting members from the current membership of the commission.
481.30 	(3) The commission may remove any member of the executive board as provided in the 
481.31 	commission's bylaws.
482.1 	(4) The executive board shall meet at least annually.
482.2 	(i) An executive board meeting at which it takes or intends to take formal action on a 
482.3 	matter shall be open to the public, except that the executive board may meet in a closed, 
482.4 	nonpublic session of a public meeting when dealing with any of the matters covered under 
482.5 	(D)(4) of this article.
482.6 	(ii) The executive board shall give five business days' notice of its public meetings, 
482.7 	posted on its website and as it may otherwise determine to provide notice to persons with 
482.8 	an interest in the public matters the executive board intends to address at those meetings.
482.9 	(5) The executive board may hold an emergency meeting when acting for the commission 
482.10 	to:
482.11 	(i) meet an imminent threat to public health, safety, or welfare;
482.12 	(ii) prevent a loss of commission or participating state funds; or
482.13 	(iii) protect public health and safety.
482.14 	(G) Qualified Immunity, Defense, and Indemnification:
482.15 	(1) The members, officers, executive director, employees, and representatives of the 
482.16 	commission shall be immune from suit and liability, both personally and in their official 
482.17 	capacity, for any claim for damage to or loss of property or personal injury or other civil 
482.18 	liability caused by or arising out of any actual or alleged act, error, or omission that occurred, 
482.19 	or that the person against whom the claim is made had a reasonable basis for believing 
482.20 	occurred within the scope of commission employment, duties, or responsibilities; provided 
482.21 	that nothing in this paragraph shall be construed to protect any such person from suit or 
482.22 	liability for any damage, loss, injury, or liability caused by the intentional or willful or 
482.23 	wanton misconduct of that person. The procurement of insurance of any type by the 
482.24 	commission shall not in any way compromise or limit the immunity granted hereunder.
482.25 	(2) The commission shall defend any member, officer, executive director, employee, or 
482.26 	representative of the commission in any civil action seeking to impose liability arising out 
482.27 	of any actual or alleged act, error, or omission that occurred within the scope of commission 
482.28 	employment, duties, or responsibilities, or as determined by the commission that the person 
482.29 	against whom the claim is made had a reasonable basis for believing occurred within the 
482.30 	scope of commission employment, duties, or responsibilities; provided that nothing herein 
482.31 	shall be construed to prohibit that person from retaining their own counsel at their own 
482.32 	expense; and provided further that the actual or alleged act, error, or omission did not result 
482.33 	from that person's intentional or willful or wanton misconduct.
483.1 	(3) Notwithstanding (G)(1) of this article, should any member, officer, executive director, 
483.2 	employee, or representative of the commission be held liable for the amount of any settlement 
483.3 	or judgment arising out of any actual or alleged act, error, or omission that occurred within 
483.4 	the scope of that individual's employment, duties, or responsibilities for the commission, 
483.5 	or that the person to whom that individual is liable had a reasonable basis for believing 
483.6 	occurred within the scope of the individual's employment, duties, or responsibilities for the 
483.7 	commission, the commission shall indemnify and hold harmless such individual; provided 
483.8 	that the actual or alleged act, error, or omission did not result from the intentional or willful 
483.9 	or wanton misconduct of the individual.
483.10 	(4) Nothing herein shall be construed as a limitation on the liability of any licensee for 
483.11 	professional malpractice or misconduct, which shall be governed solely by any other 
483.12 	applicable state laws.
483.13 	(5) Nothing in this compact shall be interpreted to waive or otherwise abrogate a 
483.14 	participating state's state action immunity or state action affirmative defense with respect 
483.15 	to antitrust claims under the Sherman Act, Clayton Act, or any other state or federal antitrust 
483.16 	or anticompetitive law or regulation.
483.17 	(6) Nothing in this compact shall be construed to be a waiver of sovereign immunity by 
483.18 	the participating states or by the commission.
483.19 	(H) Notwithstanding paragraph (G), clause (1), of this article, the liability of the executive 
483.20 	director, employees, or representatives of the interstate commission, acting within the scope 
483.21 	of their employment or duties, may not exceed the limits of liability set forth under the 
483.22 	constitution and laws of this state for state officials, employees, and agents. This paragraph 
483.23 	expressly incorporates  section 3.736, and neither expands nor limits the rights and remedies 
483.24 	provided under that statute.
483.25 	(I) Except for a claim alleging a violation of this compact, a claim against the commission, 
483.26 	its executive director, employees, or representatives alleging a violation of the constitution 
483.27 	and laws of this state may be brought in any county where the plaintiff resides. Nothing in 
483.28 	this paragraph creates a private right of action.
483.29 	(J) Nothing in this compact shall be construed as a limitation on the liability of any 
483.30 	licensee for professional malpractice or misconduct, which shall be governed solely by any 
483.31 	other applicable state laws.
483.32 	ARTICLE VIII
483.33 	DATA SYSTEM
484.1 	(A) The commission shall provide for the development, maintenance, operation, and 
484.2 	utilization of a coordinated database and reporting system containing licensure, adverse 
484.3 	action, and the presence of significant investigative information on all licensees and 
484.4 	applicants for a license in participating states.
484.5 	(B) Notwithstanding any other provision of state law to the contrary, a participating state 
484.6 	shall submit a uniform data set to the data system on all individuals to whom this compact 
484.7 	is applicable as required by the rules of the commission, including:
484.8 	(1) identifying information;
484.9 	(2) licensure data;
484.10 	(3) adverse actions against a licensee, license applicant, or compact privilege and 
484.11 	information related thereto;
484.12 	(4) nonconfidential information related to alternative program participation, the beginning 
484.13 	and ending dates of such participation, and other information related to such participation;
484.14 	(5) any denial of an application for licensure, and the reasons for such denial, excluding 
484.15 	the reporting of any criminal history record information where prohibited by law;
484.16 	(6) the presence of significant investigative information; and
484.17 	(7) other information that may facilitate the administration of this compact or the 
484.18 	protection of the public, as determined by the rules of the commission.
484.19 	(C) The records and information provided to a participating state pursuant to this compact 
484.20 	or through the data system, when certified by the commission or an agent thereof, shall 
484.21 	constitute the authenticated business records of the commission, and shall be entitled to any 
484.22 	associated hearsay exception in any relevant judicial, quasi-judicial, or administrative 
484.23 	proceedings in a participating state.
484.24 	(D) Significant investigative information pertaining to a licensee in any participating 
484.25 	state will only be available to other participating states.
484.26 	(E) It is the responsibility of the participating states to monitor the database to determine 
484.27 	whether adverse action has been taken against a licensee or license applicant. Adverse action 
484.28 	information pertaining to a licensee or license applicant in any participating state will be 
484.29 	available to any other participating state.
484.30 	(F) Participating states contributing information to the data system may designate 
484.31 	information that may not be shared with the public without the express permission of the 
484.32 	contributing state.
485.1 	(G) Any information submitted to the data system that is subsequently expunged pursuant 
485.2 	to federal law or the laws of the participating state contributing the information shall be 
485.3 	removed from the data system.
485.4 	ARTICLE IX
485.5 	RULEMAKING
485.6 	(A) The commission shall promulgate reasonable rules in order to effectively and 
485.7 	efficiently implement and administer the purposes and provisions of the compact. A 
485.8 	commission rule shall be invalid and have no force or effect only if a court of competent 
485.9 	jurisdiction holds that the rule is invalid because the commission exercised its rulemaking 
485.10 	authority in a manner that is beyond the scope and purposes of the compact, or the powers 
485.11 	granted hereunder, or based upon another applicable standard of review.
485.12 	(B) The rules of the commission shall have the force of law in each participating state, 
485.13 	provided that where the rules of the commission conflict with the laws of the participating 
485.14 	state that establish the participating state's scope of practice as held by a court of competent 
485.15 	jurisdiction, the rules of the commission shall be ineffective in that state to the extent of the 
485.16 	conflict.
485.17 	(C) The commission shall exercise its rulemaking powers pursuant to the criteria set 
485.18 	forth in this article and the rules adopted thereunder. Rules shall become binding as of the 
485.19 	date specified by the commission for each rule.
485.20 	(D) If a majority of the legislatures of the participating states rejects a commission rule 
485.21 	or portion of a commission rule, by enactment of a statute or resolution in the same manner 
485.22 	used to adopt the compact, within four years of the date of adoption of the rule, then such 
485.23 	rule shall have no further force and effect in any participating state or to any state applying 
485.24 	to participate in the compact.
485.25 	(E) Rules shall be adopted at a regular or special meeting of the commission.
485.26 	(F) Prior to adoption of a proposed rule, the commission shall hold a public hearing and 
485.27 	allow persons to provide oral and written comments, data, facts, opinions, and arguments.
485.28 	(G) Prior to adoption of a proposed rule by the commission, and at least 30 days in 
485.29 	advance of the meeting at which the commission will hold a public hearing on the proposed 
485.30 	rule, the commission shall provide a notice of proposed rulemaking:
485.31 	(1) on the website of the commission or other publicly accessible platform;
486.1 	(2) to persons who have requested notice of the commission's notices of proposed 
486.2 	rulemaking; and
486.3 	(3) in such other ways as the commission may by rule specify.
486.4 	(H) The notice of proposed rulemaking shall include:
486.5 	(1) the time, date, and location of the public hearing at which the commission will hear 
486.6 	public comments on the proposed rule and, if different, the time, date, and location of the 
486.7 	meeting where the commission will consider and vote on the proposed rule;
486.8 	(2) if the hearing is held via telecommunication, video conference, or other electronic 
486.9 	means, the commission shall include the mechanism for access to the hearing in the notice 
486.10 	of proposed rulemaking;
486.11 	(3) the text of the proposed rule and the reason therefor;
486.12 	(4) a request for comments on the proposed rule from any interested person; and
486.13 	(5) the manner in which interested persons may submit written comments.
486.14 	(I) All hearings will be recorded. A copy of the recording and all written comments and 
486.15 	documents received by the commission in response to the proposed rule shall be available 
486.16 	to the public.
486.17 	(J) Nothing in this article shall be construed as requiring a separate hearing on each 
486.18 	commission rule. Rules may be grouped for the convenience of the commission at hearings 
486.19 	required by this article.
486.20 	(K) The commission shall, by majority vote of all commissioners, take final action on 
486.21 	the proposed rule based on the rulemaking record.
486.22 	(1) The commission may adopt changes to the proposed rule provided the changes do 
486.23 	not enlarge the original purpose of the proposed rule.
486.24 	(2) The commission shall provide an explanation of the reasons for substantive changes 
486.25 	made to the proposed rule as well as reasons for substantive changes not made that were 
486.26 	recommended by commenters.
486.27 	(3) The commission shall determine a reasonable effective date for the rule. Except for 
486.28 	an emergency as provided in (L) of this article, the effective date of the rule shall be no 
486.29 	sooner than 30 days after the commission issuing the notice that it adopted or amended the 
486.30 	rule.
487.1 	(L) Upon determination that an emergency exists, the commission may consider and 
487.2 	adopt an emergency rule with 24 hours' notice, with opportunity to comment, provided that 
487.3 	the usual rulemaking procedures provided in the compact and in this article shall be 
487.4 	retroactively applied to the rule as soon as reasonably possible, in no event later than 90 
487.5 	days after the effective date of the rule. For the purposes of this provision, an emergency 
487.6 	rule is one that must be adopted immediately in order to:
487.7 	(1) meet an imminent threat to public health, safety, or welfare;
487.8 	(2) prevent a loss of commission or participating state funds;
487.9 	(3) meet a deadline for the promulgation of a rule that is established by federal law or 
487.10 	rule; or
487.11 	(4) protect public health and safety.
487.12 	(M) The commission or an authorized committee of the commission may direct revisions 
487.13 	to a previously adopted rule for purposes of correcting typographical errors, errors in format, 
487.14 	errors in consistency, or grammatical errors. Public notice of any revisions shall be posted 
487.15 	on the website of the commission. The revision shall be subject to challenge by any person 
487.16 	for a period of 30 days after posting. The revision may be challenged only on grounds that 
487.17 	the revision results in a material change to a rule. A challenge shall be made in writing and 
487.18 	delivered to the commission prior to the end of the notice period. If no challenge is made, 
487.19 	the revision will take effect without further action. If the revision is challenged, the revision 
487.20 	may not take effect without the approval of the commission.
487.21 	(N) No participating state's rulemaking requirements shall apply under this compact.
487.22 	ARTICLE X
487.23 	OVERSIGHT, DISPUTE RESOLUTION, AND ENFORCEMENT
487.24 	(A) Oversight:
487.25 	(1) The executive and judicial branches of state government in each participating state 
487.26 	shall enforce this compact and take all actions necessary and appropriate to implement the 
487.27 	compact.
487.28 	(2) Except as provided under article VII, paragraph (I), venue is proper and judicial 
487.29 	proceedings by or against the commission shall be brought solely and exclusively in a court 
487.30 	of competent jurisdiction where the principal office of the commission is located. The 
487.31 	commission may waive venue and jurisdictional defenses to the extent it adopts or consents 
487.32 	to participate in alternative dispute resolution proceedings. Nothing herein shall affect or 
488.1 	limit the selection or propriety of venue in any action against a licensee for professional 
488.2 	malpractice, misconduct, or any such similar matter.
488.3 	(3) The commission shall be entitled to receive service of process in any proceeding 
488.4 	regarding the enforcement or interpretation of the compact or commission rule and shall 
488.5 	have standing to intervene in such a proceeding for all purposes. Failure to provide the 
488.6 	commission service of process shall render a judgment or order void as to the commission, 
488.7 	this compact, or the promulgated rules.
488.8 	(B) Default, Technical Assistance, and Termination:
488.9 	(1) If the commission determines that a participating state has defaulted in the 
488.10 	performance of its obligations or responsibilities under this compact or the promulgated 
488.11 	rules, the commission shall provide written notice to the defaulting state. The notice of 
488.12 	default shall describe the default, the proposed means of curing the default, and any other 
488.13 	action that the commission may take, and shall offer training and specific technical assistance 
488.14 	regarding the default.
488.15 	(2) The commission shall provide a copy of the notice of default to the other participating 
488.16 	states.
488.17 	(C) If a state in default fails to cure the default, the defaulting state may be terminated 
488.18 	from the compact upon an affirmative vote of a majority of the commissioners, and all 
488.19 	rights, privileges, and benefits conferred on that state by this compact may be terminated 
488.20 	on the effective date of termination. A cure of the default does not relieve the offending 
488.21 	state of obligations or liabilities incurred during the period of default.
488.22 	(D) Termination of participation in the compact shall be imposed only after all other 
488.23 	means of securing compliance have been exhausted. Notice of intent to suspend or terminate 
488.24 	shall be given by the commission to the governor, the majority and minority leaders of the 
488.25 	defaulting state's legislature, the defaulting state's state licensing authority or authorities, 
488.26 	as applicable, and each of the participating states' state licensing authority or authorities, as 
488.27 	applicable.
488.28 	(E) A state that has been terminated is responsible for all assessments, obligations, and 
488.29 	liabilities incurred through the effective date of termination, including obligations that 
488.30 	extend beyond the effective date of termination.
488.31 	(F) Upon the termination of a state's participation in this compact, that state shall 
488.32 	immediately provide notice to all licensees of the state, including licensees of other 
488.33 	participating states issued a compact privilege to practice within that state, of such 
489.1 	termination. The terminated state shall continue to recognize all compact privileges then in 
489.2 	effect in that state for a minimum of 180 days after the date of said notice of termination.
489.3 	(G) The commission shall not bear any costs related to a state that is found to be in 
489.4 	default or that has been terminated from the compact, unless agreed upon in writing between 
489.5 	the commission and the defaulting state.
489.6 	(H) The defaulting state may appeal the action of the commission by petitioning the 
489.7 	United States District Court for the District of Columbia or the federal district where the 
489.8 	commission has its principal offices. The prevailing party shall be awarded all costs of such 
489.9 	litigation, including reasonable attorney fees.
489.10 	(I) Dispute Resolution:
489.11 	(1) Upon request by a participating state, the commission shall attempt to resolve disputes 
489.12 	related to the compact that arise among participating states and between participating states 
489.13 	and nonparticipating states.
489.14 	(2) The commission shall promulgate a rule providing for both mediation and binding 
489.15 	dispute resolution for disputes as appropriate.
489.16 	(J) Enforcement:
489.17 	(1) The commission, in the reasonable exercise of its discretion, shall enforce the 
489.18 	provisions of this compact and the commission's rules.
489.19 	(2) By majority vote, the commission may initiate legal action against a participating 
489.20 	state in default in the United States District Court for the District of Columbia or the federal 
489.21 	district where the commission has its principal offices to enforce compliance with the 
489.22 	provisions of the compact and its promulgated rules. The relief sought may include both 
489.23 	injunctive relief and damages. In the event judicial enforcement is necessary, the prevailing 
489.24 	party shall be awarded all costs of such litigation, including reasonable attorney fees. The 
489.25 	remedies herein shall not be the exclusive remedies of the commission. The commission 
489.26 	may pursue any other remedies available under federal or the defaulting participating state's 
489.27 	law.
489.28 	(3) A participating state may initiate legal action against the commission in the United 
489.29 	States District Court for the District of Columbia or the federal district where the commission 
489.30 	has its principal offices to enforce compliance with the provisions of the compact and its 
489.31 	promulgated rules. The relief sought may include both injunctive relief and damages. In the 
489.32 	event judicial enforcement is necessary, the prevailing party shall be awarded all costs of 
489.33 	such litigation, including reasonable attorney fees.
490.1 	(4) No individual or entity other than a participating state may enforce this compact 
490.2 	against the commission.
490.3 	ARTICLE XI
490.4 	EFFECTIVE DATE, WITHDRAWAL, AND AMENDMENT
490.5 	(A) The compact shall come into effect on the date on which the compact statute is 
490.6 	enacted into law in the seventh participating state.
490.7 	(1) On or after the effective date of the compact, the commission shall convene and 
490.8 	review the enactment of each of the states that enacted the compact prior to the commission 
490.9 	convening ("charter participating states") to determine if the statute enacted by each such 
490.10 	charter participating state is materially different than the model compact.
490.11 	(i) A charter participating state whose enactment is found to be materially different from 
490.12 	the model compact shall be entitled to the default process set forth in article X.
490.13 	(ii) If any participating state is later found to be in default, or is terminated or withdraws 
490.14 	from the compact, the commission shall remain in existence and the compact shall remain 
490.15 	in effect even if the number of participating states should be less than seven.
490.16 	(2) Participating states enacting the compact subsequent to the charter participating states 
490.17 	shall be subject to the process set forth in article VII, (C)(23), to determine if their enactments 
490.18 	are materially different from the model compact and whether they qualify for participation 
490.19 	in the compact.
490.20 	(3) All actions taken for the benefit of the commission or in furtherance of the purposes 
490.21 	of the administration of the compact prior to the effective date of the compact or the 
490.22 	commission coming into existence shall be considered to be actions of the commission 
490.23 	unless specifically repudiated by the commission.
490.24 	(4) Any state that joins the compact subsequent to the commission's initial adoption of 
490.25 	the rules and bylaws shall be subject to the commission's rules and bylaws as they exist on 
490.26 	the date on which the compact becomes law in that state. Any rule that has been previously 
490.27 	adopted by the commission shall have the full force and effect of law on the day the compact 
490.28 	becomes law in that state.
490.29 	(B) Any participating state may withdraw from this compact by enacting a statute 
490.30 	repealing that state's enactment of the compact.
490.31 	(1) A participating state's withdrawal shall not take effect until 180 days after enactment 
490.32 	of the repealing statute.
491.1 	(2) Withdrawal shall not affect the continuing requirement of the withdrawing state's 
491.2 	licensing authority or authorities to comply with the investigative and adverse action reporting 
491.3 	requirements of this compact prior to the effective date of withdrawal.
491.4 	(3) Upon the enactment of a statute withdrawing from this compact, the state shall 
491.5 	immediately provide notice of such withdrawal to all licensees within that state. 
491.6 	Notwithstanding any subsequent statutory enactment to the contrary, such withdrawing 
491.7 	state shall continue to recognize all compact privileges to practice within that state granted 
491.8 	pursuant to this compact for a minimum of 180 days after the date of such notice of 
491.9 	withdrawal.
491.10 	(C) Nothing contained in this compact shall be construed to invalidate or prevent any 
491.11 	licensure agreement or other cooperative arrangement between a participating state and a 
491.12 	nonparticipating state that does not conflict with the provisions of this compact.
491.13 	(D) This compact may be amended by the participating states. No amendment to this 
491.14 	compact shall become effective and binding upon any participating state until it is enacted 
491.15 	into the laws of all participating states.
491.16 	ARTICLE XII
491.17 	CONSTRUCTION AND SEVERABILITY
491.18 	(A) This compact and the commission's rulemaking authority shall be liberally construed 
491.19 	so as to effectuate the purposes and the implementation and administration of the compact. 
491.20 	Provisions of the compact expressly authorizing or requiring the promulgation of rules shall 
491.21 	not be construed to limit the commission's rulemaking authority solely for those purposes.
491.22 	(B) The provisions of this compact shall be severable and if any phrase, clause, sentence, 
491.23 	or provision of this compact is held by a court of competent jurisdiction to be contrary to 
491.24 	the constitution of any participating state, a state seeking participation in the compact, or 
491.25 	of the United States, or the applicability thereof to any government, agency, person, or 
491.26 	circumstance is held to be unconstitutional by a court of competent jurisdiction, the validity 
491.27 	of the remainder of this compact and the applicability thereof to any other government, 
491.28 	agency, person, or circumstance shall not be affected thereby.
491.29 	(C) Notwithstanding (B) of this article, the commission may deny a state's participation 
491.30 	in the compact or, in accordance with the requirements of article X, (B), terminate a 
491.31 	participating state's participation in the compact, if it determines that a constitutional 
491.32 	requirement of a participating state is a material departure from the compact. Otherwise, if 
491.33 	this compact shall be held to be contrary to the constitution of any participating state, the 
492.1 	compact shall remain in full force and effect as to the remaining participating states and in 
492.2 	full force and effect as to the participating state affected as to all severable matters.
492.3 	ARTICLE XIII
492.4 	CONSISTENT EFFECT AND CONFLICT WITH OTHER STATE LAWS
492.5 	(A) Nothing herein shall prevent or inhibit the enforcement of any other law of a 
492.6 	participating state that is not inconsistent with the compact.
492.7 	(B) Any laws, statutes, regulations, or other legal requirements in a participating state 
492.8 	in conflict with the compact are superseded to the extent of the conflict.
492.9 	(C) All permissible agreements between the commission and the participating states are 
492.10 	binding in accordance with their terms.

492.11 	ARTICLE 32
492.12 	SOCIAL WORK SERVICES LICENSURE COMPACT

492.13 	Section 1. [148E.40] TITLE.
492.14 	Sections 148E.40 to 148E.55 shall be known and cited as the social work services 
492.15 	licensure compact.

492.16 	Sec. 2. [148E.41] DEFINITIONS.
492.17 	As used in this Compact, and except as otherwise provided, the following definitions 
492.18 	shall apply:
492.19 	(1) "Active military member" means any individual with full-time duty status in the 
492.20 	active armed forces of the United States, including members of the National Guard and 
492.21 	Reserve.
492.22 	(2) "Adverse action" means any administrative, civil, equitable, or criminal action 
492.23 	permitted by a state's laws which is imposed by a licensing authority or other authority 
492.24 	against a regulated social worker, including actions against an individual's license or 
492.25 	multistate authorization to practice such as revocation, suspension, probation, monitoring 
492.26 	of the licensee, limitation on the licensee's practice, or any other encumbrance on licensure 
492.27 	affecting a regulated social worker's authorization to practice, including issuance of a cease 
492.28 	and desist action.
492.29 	(3) "Alternative program" means a nondisciplinary monitoring or practice remediation 
492.30 	process approved by a licensing authority to address practitioners with an impairment.
493.1 	(4) "Charter member states" means member states who have enacted legislation to adopt 
493.2 	this Compact where such legislation predates the effective date of this Compact as described 
493.3 	in section 148E.53.
493.4 	(5) "Compact" means sections 148E.40 to 148E.55.
493.5 	(6) "Compact Commission" or "Commission" means the government agency whose 
493.6 	membership consists of all States that have enacted this Compact, which is known as the 
493.7 	Social Work Licensure Compact Commission, as described in section 148E.49, and which 
493.8 	shall operate as an instrumentality of the member states.
493.9 	(7) "Current significant investigative information" means:
493.10 	(i) investigative information that a licensing authority, after a preliminary inquiry that 
493.11 	includes notification and an opportunity for the regulated social worker to respond, has 
493.12 	reason to believe is not groundless and, if proved true, would indicate more than a minor 
493.13 	infraction as may be defined by the Commission; or
493.14 	(ii) investigative information that indicates that the regulated social worker represents 
493.15 	an immediate threat to public health and safety, as may be defined by the Commission, 
493.16 	regardless of whether the regulated social worker has been notified and has had an 
493.17 	opportunity to respond.
493.18 	(8) "Data system" means a repository of information about licensees, including continuing 
493.19 	education, examinations, licensure, current significant investigative information, disqualifying 
493.20 	events, multistate licenses, and adverse action information or other information as required 
493.21 	by the Commission.
493.22 	(9) "Disqualifying event" means any adverse action or incident which results in an 
493.23 	encumbrance that disqualifies or makes the licensee ineligible to obtain, retain, or renew a 
493.24 	multistate license.
493.25 	(10) "Domicile" means the jurisdiction in which the licensee resides and intends to 
493.26 	remain indefinitely.
493.27 	(11) "Encumbrance" means a revocation or suspension of, or any limitation on, the full 
493.28 	and unrestricted practice of social work licensed and regulated by a licensing authority.
493.29 	(12) "Executive Committee" means a group of delegates elected or appointed to act on 
493.30 	behalf of, and within the powers granted to them by, the Compact and Commission.
493.31 	(13) "Home state" means the member state that is the licensee's primary domicile.
494.1 	(14) "Impairment" means a condition that may impair a practitioner's ability to engage 
494.2 	in full and unrestricted practice as a regulated social worker without some type of intervention 
494.3 	and may include alcohol and drug dependence, mental health impairment, and neurological 
494.4 	or physical impairments.
494.5 	(15) "Licensee" means an individual who currently holds a license from a state to practice 
494.6 	as a regulated social worker.
494.7 	(16) "Licensing authority" means the board or agency of a member state, or equivalent, 
494.8 	that is responsible for the licensing and regulation of regulated social workers.
494.9 	(17) "Member state" means a state, commonwealth, district, or territory of the United 
494.10 	States of America that has enacted this Compact.
494.11 	(18) "Multistate authorization to practice" means a legally authorized privilege to practice, 
494.12 	which is equivalent to a license, associated with a multistate license permitting the practice 
494.13 	of social work in a remote state.
494.14 	(19) "Multistate license" means a license to practice as a regulated social worker issued 
494.15 	by a home state licensing authority that authorizes the regulated social worker to practice 
494.16 	in all member states under multistate authorization to practice.
494.17 	(20) "Qualifying national exam" means a national licensing examination approved by 
494.18 	the Commission.
494.19 	(21) "Regulated social worker" means any clinical, master's, or bachelor's social worker 
494.20 	licensed by a member state regardless of the title used by that member state.
494.21 	(22) "Remote state" means a member state other than the licensee's home state.
494.22 	(23) "Rule" or "rule of the Commission" means a regulation or regulations duly 
494.23 	promulgated by the Commission, as authorized by the Compact, that has the force of law.
494.24 	(24) "Single state license" means a social work license issued by any state that authorizes 
494.25 	practice only within the issuing state and does not include multistate authorization to practice 
494.26 	in any member state.
494.27 	(25) "Social work" or "social work services" means the application of social work theory, 
494.28 	knowledge, methods, ethics, and the professional use of self to restore or enhance social, 
494.29 	psychosocial, or biopsychosocial functioning of individuals, couples, families, groups, 
494.30 	organizations, and communities through the care and services provided by a regulated social 
494.31 	worker as set forth in the member state's statutes and regulations in the state where the 
494.32 	services are being provided.
495.1 	(26) "State" means any state, commonwealth, district, or territory of the United States 
495.2 	of America that regulates the practice of social work.
495.3 	(27) "Unencumbered license" means a license that authorizes a regulated social worker 
495.4 	to engage in the full and unrestricted practice of social work.

495.5 	Sec. 3. [148E.42] STATE PARTICIPATION IN THE COMPACT.
495.6 	(a) To be eligible to participate in the compact, a potential member state must currently 
495.7 	meet all of the following criteria:
495.8 	(1) license and regulate the practice of social work at either the clinical, master's, or 
495.9 	bachelor's category;
495.10 	(2) require applicants for licensure to graduate from a program that:
495.11 	(i) is operated by a college or university recognized by the licensing authority;
495.12 	(ii) is accredited, or in candidacy by an institution that subsequently becomes accredited, 
495.13 	by an accrediting agency recognized by either:
495.14 	(A) the Council for Higher Education Accreditation, or its successor; or
495.15 	(B) the United States Department of Education; and
495.16 	(iii) corresponds to the licensure sought as outlined in section 148E.43;
495.17 	(3) require applicants for clinical licensure to complete a period of supervised practice; 
495.18 	and
495.19 	(4) have a mechanism in place for receiving, investigating, and adjudicating complaints 
495.20 	about licensees.
495.21 	(b) To maintain membership in the Compact, a member state shall:
495.22 	(1) require that applicants for a multistate license pass a qualifying national exam for 
495.23 	the corresponding category of multistate license sought as outlined in section 148E.43;
495.24 	(2) participate fully in the Commission's data system, including using the Commission's 
495.25 	unique identifier as defined in rules;
495.26 	(3) notify the Commission, in compliance with the terms of the Compact and rules, of 
495.27 	any adverse action or the availability of current significant investigative information regarding 
495.28 	a licensee;
495.29 	(4) implement procedures for considering the criminal history records of applicants for 
495.30 	a multistate license. Such procedures shall include the submission of fingerprints or other 
496.1 	biometric-based information by applicants for the purpose of obtaining an applicant's criminal 
496.2 	history record information from the Federal Bureau of Investigation and the agency 
496.3 	responsible for retaining that state's criminal records;
496.4 	(5) comply with the rules of the Commission;
496.5 	(6) require an applicant to obtain or retain a license in the home state and meet the home 
496.6 	state's qualifications for licensure or renewal of licensure, as well as all other applicable 
496.7 	home state laws;
496.8 	(7) authorize a licensee holding a multistate license in any member state to practice in 
496.9 	accordance with the terms of the Compact and rules of the Commission; and
496.10 	(8) designate a delegate to participate in the Commission meetings.
496.11 	(c) A member state meeting the requirements of paragraphs (a) and (b) shall designate 
496.12 	the categories of social work licensure that are eligible for issuance of a multistate license 
496.13 	for applicants in such member state. To the extent that any member state does not meet the 
496.14 	requirements for participation in the Compact at any particular category of social work 
496.15 	licensure, such member state may choose but is not obligated to issue a multistate license 
496.16 	to applicants that otherwise meet the requirements of section 148E.43 for issuance of a 
496.17 	multistate license in such category or categories of licensure.
496.18 	(d) The home state may charge a fee for granting the multistate license.

496.19 	Sec. 4. [148E.43] SOCIAL WORKER PARTICIPATION IN THE COMPACT.
496.20 	(a) To be eligible for a multistate license under the terms and provisions of the Compact, 
496.21 	an applicant, regardless of category, must:
496.22 	(1) hold or be eligible for an active, unencumbered license in the home state;
496.23 	(2) pay any applicable fees, including any state fee, for the multistate license;
496.24 	(3) submit, in connection with an application for a multistate license, fingerprints or 
496.25 	other biometric data for the purpose of obtaining criminal history record information from 
496.26 	the Federal Bureau of Investigation and the agency responsible for retaining that state's 
496.27 	criminal records;
496.28 	(4) notify the home state of any adverse action, encumbrance, or restriction on any 
496.29 	professional license taken by any member state or nonmember state within 30 days from 
496.30 	the date the action is taken;
496.31 	(5) meet any continuing competence requirements established by the home state; and
497.1 	(6) abide by the laws, regulations, and applicable standards in the member state where 
497.2 	the client is located at the time care is rendered.
497.3 	(b) An applicant for a clinical-category multistate license must meet all of the following 
497.4 	requirements:
497.5 	(1) fulfill a competency requirement, which shall be satisfied by either:
497.6 	(i) passage of a clinical-category qualifying national exam;
497.7 	(ii) licensure of the applicant in their home state at the clinical category, beginning prior 
497.8 	to such time as a qualifying national exam was required by the home state and accompanied 
497.9 	by a period of continuous social work licensure thereafter, all of which may be further 
497.10 	governed by the rules of the Commission; or
497.11 	(iii) the substantial equivalency of the foregoing competency requirements which the 
497.12 	Commission may determine by rule;
497.13 	(2) attain at least a master's degree in social work from a program that is:
497.14 	(i) operated by a college or university recognized by the licensing authority; and
497.15 	(ii) accredited, or in candidacy that subsequently becomes accredited, by an accrediting 
497.16 	agency recognized by either:
497.17 	(A) the Council for Higher Education Accreditation or its successor; or
497.18 	(B) the United States Department of Education; and
497.19 	(3) fulfill a practice requirement, which shall be satisfied by demonstrating completion 
497.20 	of:
497.21 	(i) a period of postgraduate supervised clinical practice equal to a minimum of 3,000 
497.22 	hours;
497.23 	(ii) a minimum of two years of full-time postgraduate supervised clinical practice; or
497.24 	(iii) the substantial equivalency of the foregoing practice requirements which the 
497.25 	Commission may determine by rule.
497.26 	(c) An applicant for a master's-category multistate license must meet all of the following 
497.27 	requirements:
497.28 	(1) fulfill a competency requirement, which shall be satisfied by either:
497.29 	(i) passage of a masters-category qualifying national exam;
498.1 	(ii) licensure of the applicant in their home state at the master's category, beginning prior 
498.2 	to such time as a qualifying national exam was required by the home state at the master's 
498.3 	category and accompanied by a continuous period of social work licensure thereafter, all 
498.4 	of which may be further governed by the rules of the Commission; or
498.5 	(iii) the substantial equivalency of the foregoing competency requirements which the 
498.6 	Commission may determine by rule; and
498.7 	(2) attain at least a master's degree in social work from a program that is:
498.8 	(i) operated by a college or university recognized by the licensing authority; and
498.9 	(ii) accredited, or in candidacy that subsequently becomes accredited, by an accrediting 
498.10 	agency recognized by either:
498.11 	(A) the Council for Higher Education Accreditation or its successor; or
498.12 	(B) the United States Department of Education.
498.13 	(d) An applicant for a bachelor's-category multistate license must meet all of the following 
498.14 	requirements:
498.15 	(1) fulfill a competency requirement, which shall be satisfied by either:
498.16 	(i) passage of a bachelor's-category qualifying national exam;
498.17 	(ii) licensure of the applicant in their home state at the bachelor's category, beginning 
498.18 	prior to such time as a qualifying national exam was required by the home state and 
498.19 	accompanied by a period of continuous social work licensure thereafter, all of which may 
498.20 	be further governed by the rules of the Commission; or
498.21 	(iii) the substantial equivalency of the foregoing competency requirements which the 
498.22 	Commission may determine by rule; and
498.23 	(2) attain at least a bachelor's degree in social work from a program that is:
498.24 	(i) operated by a college or university recognized by the licensing authority; and
498.25 	(ii) accredited, or in candidacy that subsequently becomes accredited, by an accrediting 
498.26 	agency recognized by either:
498.27 	(A) the Council for Higher Education Accreditation or its successor; or
498.28 	(B) the United States Department of Education.
499.1 	(e) The multistate license for a regulated social worker is subject to the renewal 
499.2 	requirements of the home state. The regulated social worker must maintain compliance with 
499.3 	the requirements of paragraph (a) to be eligible to renew a multistate license.
499.4 	(f) The regulated social worker's services in a remote state are subject to that member 
499.5 	state's regulatory authority. A remote state may, in accordance with due process and that 
499.6 	member state's laws, remove a regulated social worker's multistate authorization to practice 
499.7 	in the remote state for a specific period of time, impose fines, and take any other necessary 
499.8 	actions to protect the health and safety of its citizens.
499.9 	(g) If a multistate license is encumbered, the regulated social worker's multistate 
499.10 	authorization to practice shall be deactivated in all remote states until the multistate license 
499.11 	is no longer encumbered.
499.12 	(h) If a multistate authorization to practice is encumbered in a remote state, the regulated 
499.13 	social worker's multistate authorization to practice may be deactivated in that state until the 
499.14 	multistate authorization to practice is no longer encumbered.

499.15 	Sec. 5. [148E.44] ISSUANCE OF A MULTISTATE LICENSE.
499.16 	(a) Upon receipt of an application for multistate license, the home state licensing authority 
499.17 	shall determine the applicant's eligibility for a multistate license in accordance with section 
499.18 	148E.43.
499.19 	(b) If such applicant is eligible pursuant to section 148E.43, the home state licensing 
499.20 	authority shall issue a multistate license that authorizes the applicant or regulated social 
499.21 	worker to practice in all member states under a multistate authorization to practice.
499.22 	(c) Upon issuance of a multistate license, the home state licensing authority shall designate 
499.23 	whether the regulated social worker holds a multistate license in the bachelor's, master's, 
499.24 	or clinical category of social work.
499.25 	(d) A multistate license issued by a home state to a resident in that state shall be 
499.26 	recognized by all Compact member states as authorizing social work practice under a 
499.27 	multistate authorization to practice corresponding to each category of licensure regulated 
499.28 	in each member state.

499.29 	Sec. 6. [148E.45] AUTHORITY OF INTERSTATE COMPACT COMMISSION 
499.30 	AND MEMBER STATE LICENSING AUTHORITIES.
499.31 	(a) Nothing in this Compact, nor any rule of the Commission, shall be construed to limit, 
499.32 	restrict, or in any way reduce the ability of a member state to enact and enforce laws, 
500.1 	regulations, or other rules related to the practice of social work in that state, where those 
500.2 	laws, regulations, or other rules are not inconsistent with the provisions of this Compact.
500.3 	(b) Nothing in this Compact shall affect the requirements established by a member state 
500.4 	for the issuance of a single state license.
500.5 	(c) Nothing in this Compact, nor any rule of the Commission, shall be construed to limit, 
500.6 	restrict, or in any way reduce the ability of a member state to take adverse action against a 
500.7 	licensee's single state license to practice social work in that state.
500.8 	(d) Nothing in this Compact, nor any rule of the Commission, shall be construed to limit, 
500.9 	restrict, or in any way reduce the ability of a remote state to take adverse action against a 
500.10 	licensee's multistate authorization to practice in that state.
500.11 	(e) Nothing in this Compact, nor any rule of the Commission, shall be construed to limit, 
500.12 	restrict, or in any way reduce the ability of a licensee's home state to take adverse action 
500.13 	against a licensee's multistate license based upon information provided by a remote state.

500.14 	Sec. 7. [148E.46] REISSUANCE OF A MULTISTATE LICENSE BY A NEW HOME 
500.15 	STATE.
500.16 	(a) A licensee can hold a multistate license, issued by their home state, in only one 
500.17 	member state at any given time.
500.18 	(b) If a licensee changes their home state by moving between two member states:
500.19 	(1) The licensee shall immediately apply for the reissuance of their multistate license in 
500.20 	their new home state. The licensee shall pay all applicable fees and notify the prior home 
500.21 	state in accordance with the rules of the Commission.
500.22 	(2) Upon receipt of an application to reissue a multistate license, the new home state 
500.23 	shall verify that the multistate license is active, unencumbered, and eligible for reissuance 
500.24 	under the terms of the Compact and the rules of the Commission. The multistate license 
500.25 	issued by the prior home state will be deactivated and all member states notified in 
500.26 	accordance with the applicable rules adopted by the Commission.
500.27 	(3) Prior to the reissuance of the multistate license, the new home state shall conduct 
500.28 	procedures for considering the criminal history records of the licensee. Such procedures 
500.29 	shall include the submission of fingerprints or other biometric-based information by 
500.30 	applicants for the purpose of obtaining an applicant's criminal history record information 
500.31 	from the Federal Bureau of Investigation and the agency responsible for retaining that state's 
500.32 	criminal records.
501.1 	(4) If required for initial licensure, the new home state may require completion of 
501.2 	jurisprudence requirements in the new home state.
501.3 	(5) Notwithstanding any other provision of this Compact, if a licensee does not meet 
501.4 	the requirements set forth in this Compact for the reissuance of a multistate license by the 
501.5 	new home state, then the licensee shall be subject to the new home state requirements for 
501.6 	the issuance of a single state license in that state.
501.7 	(c) If a licensee changes their primary state of residence by moving from a member state 
501.8 	to a nonmember state, or from a nonmember state to a member state, then the licensee shall 
501.9 	be subject to the state requirements for the issuance of a single state license in the new home 
501.10 	state.
501.11 	(d) Nothing in this Compact shall interfere with a licensee's ability to hold a single state 
501.12 	license in multiple states; however, for the purposes of this Compact, a licensee shall have 
501.13 	only one home state, and only one multistate license.
501.14 	(e) Nothing in this Compact shall interfere with the requirements established by a member 
501.15 	state for the issuance of a single state license.

501.16 	Sec. 8. [148E.47] MILITARY FAMILIES.
501.17 	An active military member or their spouse shall designate a home state where the 
501.18 	individual has a multistate license. The individual may retain their home state designation 
501.19 	during the period the service member is on active duty.

501.20 	Sec. 9. [148E.48] ADVERSE ACTIONS.
501.21 	(a) In addition to the other powers conferred by state law, a remote state shall have the 
501.22 	authority, in accordance with existing state due process law, to:
501.23 	(1) take adverse action against a regulated social worker's multistate authorization to 
501.24 	practice only within that member state, and issue subpoenas for both hearings and 
501.25 	investigations that require the attendance and testimony of witnesses as well as the production 
501.26 	of evidence. Subpoenas issued by a licensing authority in a member state for the attendance 
501.27 	and testimony of witnesses or the production of evidence from another member state shall 
501.28 	be enforced in the latter state by any court of competent jurisdiction, according to the practice 
501.29 	and procedure of that court applicable to subpoenas issued in proceedings pending before 
501.30 	it. The issuing licensing authority shall pay any witness fees, travel expenses, mileage, and 
501.31 	other fees required by the service statutes of the state in which the witnesses or evidence 
501.32 	are located; and
502.1 	(2) only the home state shall have the power to take adverse action against a regulated 
502.2 	social worker's multistate license.
502.3 	(b) For purposes of taking adverse action, the home state shall give the same priority 
502.4 	and effect to reported conduct received from a member state as it would if the conduct had 
502.5 	occurred within the home state. In so doing, the home state shall apply its own state laws 
502.6 	to determine appropriate action.
502.7 	(c) The home state shall complete any pending investigations of a regulated social worker 
502.8 	who changes their home state during the course of the investigations. The home state shall 
502.9 	also have the authority to take appropriate action and shall promptly report the conclusions 
502.10 	of the investigations to the administrator of the data system. The administrator of the data 
502.11 	system shall promptly notify the new home state of any adverse actions.
502.12 	(d) A member state, if otherwise permitted by state law, may recover from the affected 
502.13 	regulated social worker the costs of investigations and dispositions of cases resulting from 
502.14 	any adverse action taken against that regulated social worker.
502.15 	(e) A member state may take adverse action based on the factual findings of another 
502.16 	member state, provided that the member state follows its own procedures for taking the 
502.17 	adverse action.
502.18 	(f) Joint investigations:
502.19 	(1) In addition to the authority granted to a member state by its respective social work 
502.20 	practice act or other applicable state law, any member state may participate with other 
502.21 	member states in joint investigations of licensees.
502.22 	(2) Member states shall share any investigative, litigation, or compliance materials in 
502.23 	furtherance of any joint or individual investigation initiated under the Compact.
502.24 	(g) If adverse action is taken by the home state against the multistate license of a regulated 
502.25 	social worker, the regulated social worker's multistate authorization to practice in all other 
502.26 	member states shall be deactivated until all encumbrances have been removed from the 
502.27 	multistate license. All home state disciplinary orders that impose adverse action against the 
502.28 	license of a regulated social worker shall include a statement that the regulated social worker's 
502.29 	multistate authorization to practice is deactivated in all member states until all conditions 
502.30 	of the decision, order, or agreement are satisfied.
502.31 	(h) If a member state takes adverse action, it shall promptly notify the administrator of 
502.32 	the data system. The administrator of the data system shall promptly notify the home state 
502.33 	and all other member states of any adverse actions by remote states.
503.1 	(i) Nothing in this compact shall override a member state's decision that participation 
503.2 	in an alternative program may be used in lieu of adverse action.
503.3 	(j) Nothing in this Compact shall authorize a member state to demand the issuance of 
503.4 	subpoenas for attendance and testimony of witnesses or the production of evidence from 
503.5 	another member state for lawful actions within that member state.
503.6 	(k) Nothing in this Compact shall authorize a member state to impose discipline against 
503.7 	a regulated social worker who holds a multistate authorization to practice for lawful actions 
503.8 	within another member state.

503.9 	Sec. 10. [148E.49] ESTABLISHMENT OF SOCIAL WORK LICENSURE 
503.10 	COMPACT COMMISSION.
503.11 	(a) The Compact member states hereby create and establish a joint government agency 
503.12 	whose membership consists of all member states that have enacted the compact known as 
503.13 	the Social Work Licensure Compact Commission. The Commission is an instrumentality 
503.14 	of the Compact states acting jointly and not an instrumentality of any one state. The 
503.15 	Commission shall come into existence on or after the effective date of the Compact as set 
503.16 	forth in section 148E.53.
503.17 	(b) Membership, voting, and meetings:
503.18 	(1) Each member state shall have and be limited to one delegate selected by that member 
503.19 	state's state licensing authority.
503.20 	(2) The delegate shall be either:
503.21 	(i) a current member of the state licensing authority at the time of appointment, who is 
503.22 	a regulated social worker or public member of the state licensing authority; or
503.23 	(ii) an administrator of the state licensing authority or their designee.
503.24 	(3) The Commission shall by rule or bylaw establish a term of office for delegates and 
503.25 	may by rule or bylaw establish term limits.
503.26 	(4) The Commission may recommend removal or suspension of any delegate from office.
503.27 	(5) A member state's state licensing authority shall fill any vacancy of its delegate 
503.28 	occurring on the Commission within 60 days of the vacancy.
503.29 	(6) Each delegate shall be entitled to one vote on all matters before the Commission 
503.30 	requiring a vote by Commission delegates.
504.1 	(7) A delegate shall vote in person or by such other means as provided in the bylaws. 
504.2 	The bylaws may provide for delegates to meet by telecommunication, video conference, or 
504.3 	other means of communication.
504.4 	(8) The Commission shall meet at least once during each calendar year. Additional 
504.5 	meetings may be held as set forth in the bylaws. The Commission may meet by 
504.6 	telecommunication, video conference, or other similar electronic means.
504.7 	(c) The Commission shall have the following powers:
504.8 	(1) establish the fiscal year of the Commission;
504.9 	(2) establish code of conduct and conflict of interest policies;
504.10 	(3) establish and amend rules and bylaws;
504.11 	(4) maintain its financial records in accordance with the bylaws;
504.12 	(5) meet and take such actions as are consistent with the provisions of this Compact, the 
504.13 	Commission's rules, and the bylaws;
504.14 	(6) initiate and conclude legal proceedings or actions in the name of the Commission, 
504.15 	provided that the standing of any state licensing board to sue or be sued under applicable 
504.16 	law shall not be affected;
504.17 	(7) maintain and certify records and information provided to a member state as the 
504.18 	authenticated business records of the Commission, and designate an agent to do so on the 
504.19 	Commission's behalf;
504.20 	(8) purchase and maintain insurance and bonds;
504.21 	(9) borrow, accept, or contract for services of personnel, including but not limited to 
504.22 	employees of a member state;
504.23 	(10) conduct an annual financial review;
504.24 	(11) hire employees, elect or appoint officers, fix compensation, define duties, grant 
504.25 	such individuals appropriate authority to carry out the purposes of the Compact, and establish 
504.26 	the Commission's personnel policies and programs relating to conflicts of interest, 
504.27 	qualifications of personnel, and other related personnel matters;
504.28 	(12) assess and collect fees;
504.29 	(13) accept any and all appropriate gifts, donations, grants of money, other sources of 
504.30 	revenue, equipment, supplies, materials, and services, and receive, utilize, and dispose of 
505.1 	the same, provided that at all times the Commission shall avoid any appearance of 
505.2 	impropriety or conflict of interest;
505.3 	(14) lease, purchase, retain, own, hold, improve, or use any property real, personal, or 
505.4 	mixed, or any undivided interest therein;
505.5 	(15) sell, convey, mortgage, pledge, lease, exchange, abandon, or otherwise dispose of 
505.6 	any property real, personal, or mixed;
505.7 	(16) establish a budget and make expenditures;
505.8 	(17) borrow money;
505.9 	(18) appoint committees, including standing committees, composed of members, state 
505.10 	regulators, state legislators or their representatives, and consumer representatives, and such 
505.11 	other interested persons as may be designated in this Compact and the bylaws;
505.12 	(19) provide and receive information from, and cooperate with, law enforcement agencies;
505.13 	(20) establish and elect an Executive Committee, including a chair and a vice chair;
505.14 	(21) determine whether a state's adopted language is materially different from the model 
505.15 	compact language such that the state would not qualify for participation in the Compact; 
505.16 	and
505.17 	(22) perform such other functions as may be necessary or appropriate to achieve the 
505.18 	purposes of this Compact.
505.19 	(d) The Executive Committee:
505.20 	(1) The Executive Committee shall have the power to act on behalf of the Commission 
505.21 	according to the terms of this Compact. The powers, duties, and responsibilities of the 
505.22 	Executive Committee shall include:
505.23 	(i) oversee the day-to-day activities of the administration of the Compact, including 
505.24 	enforcement and compliance with the provisions of the Compact, its rules and bylaws, and 
505.25 	other such duties as deemed necessary;
505.26 	(ii) recommend to the Commission changes to the rules or bylaws, changes to this 
505.27 	Compact legislation, fees charged to Compact member states, fees charged to licensees, 
505.28 	and other fees;
505.29 	(iii) ensure Compact administration services are appropriately provided, including by 
505.30 	contract;
505.31 	(iv) prepare and recommend the budget;
506.1 	(v) maintain financial records on behalf of the Commission;
506.2 	(vi) monitor Compact compliance of member states and provide compliance reports to 
506.3 	the Commission;
506.4 	(vii) establish additional committees as necessary;
506.5 	(viii) exercise the powers and duties of the Commission during the interim between 
506.6 	Commission meetings, except for adopting or amending rules, adopting or amending bylaws, 
506.7 	and exercising any other powers and duties expressly reserved to the Commission by rule 
506.8 	or bylaw; and
506.9 	(ix) other duties as provided in the rules or bylaws of the Commission.
506.10 	(2) The Executive Committee shall be composed of up to 11 members:
506.11 	(i) the chair and vice chair of the Commission shall be voting members of the Executive 
506.12 	Committee;
506.13 	(ii) the Commission shall elect five voting members from the current membership of 
506.14 	the Commission;
506.15 	(iii) up to four ex-officio, nonvoting members from four recognized national social work 
506.16 	organizations; and
506.17 	(iv) the ex-officio members will be selected by their respective organizations.
506.18 	(3) The Commission may remove any member of the Executive Committee as provided 
506.19 	in the Commission's bylaws.
506.20 	(4) The Executive Committee shall meet at least annually.
506.21 	(i) Executive Committee meetings shall be open to the public, except that the Executive 
506.22 	Committee may meet in a closed, nonpublic meeting as provided in paragraph (f), clause 
506.23 	(2).
506.24 	(ii) The Executive Committee shall give seven days' notice of its meetings posted on its 
506.25 	website and as determined to provide notice to persons with an interest in the business of 
506.26 	the Commission.
506.27 	(iii) The Executive Committee may hold a special meeting in accordance with paragraph 
506.28 	(f), clause (1), item (ii).
506.29 	(e) The Commission shall adopt and provide to the member states an annual report.
506.30 	(f) Meetings of the Commission:
507.1 	(1) All meetings shall be open to the public, except that the Commission may meet in a 
507.2 	closed, nonpublic meeting as provided in paragraph (f), clause (2).
507.3 	(i) Public notice for all meetings of the full Commission of meetings shall be given in 
507.4 	the same manner as required under the rulemaking provisions in section 148E.51, except 
507.5 	that the Commission may hold a special meeting as provided in paragraph (f), clause (1), 
507.6 	item (ii).
507.7 	(ii) The Commission may hold a special meeting when it must meet to conduct emergency 
507.8 	business by giving 48 hours' notice to all commissioners on the Commission's website and 
507.9 	other means as provided in the Commission's rules. The Commission's legal counsel shall 
507.10 	certify that the Commission's need to meet qualifies as an emergency.
507.11 	(2) The Commission or the Executive Committee or other committees of the Commission 
507.12 	may convene in a closed, nonpublic meeting for the Commission or Executive Committee 
507.13 	or other committees of the Commission to receive legal advice or to discuss:
507.14 	(i) noncompliance of a member state with its obligations under the Compact;
507.15 	(ii) the employment, compensation, discipline, or other matters, practices, or procedures 
507.16 	related to specific employees;
507.17 	(iii) current or threatened discipline of a licensee by the Commission or by a member 
507.18 	state's licensing authority;
507.19 	(iv) current, threatened, or reasonably anticipated litigation;
507.20 	(v) negotiation of contracts for the purchase, lease, or sale of goods, services, or real 
507.21 	estate;
507.22 	(vi) accusing any person of a crime or formally censuring any person;
507.23 	(vii) trade secrets or commercial or financial information that is privileged or confidential;
507.24 	(viii) information of a personal nature where disclosure would constitute a clearly 
507.25 	unwarranted invasion of personal privacy;
507.26 	(ix) investigative records compiled for law enforcement purposes;
507.27 	(x) information related to any investigative reports prepared by or on behalf of or for 
507.28 	use of the Commission or other committee charged with responsibility of investigation or 
507.29 	determination of compliance issues pursuant to the Compact;
507.30 	(xi) matters specifically exempted from disclosure by federal or member state law; or
507.31 	(xii) other matters as promulgated by the Commission by rule.
508.1 	(3) If a meeting, or portion of a meeting, is closed, the presiding officer shall state that 
508.2 	the meeting will be closed and reference each relevant exempting provision, and such 
508.3 	reference shall be recorded in the minutes.
508.4 	(4) The Commission shall keep minutes that fully and clearly describe all matters 
508.5 	discussed in a meeting and shall provide a full and accurate summary of actions taken, and 
508.6 	the reasons therefore, including a description of the views expressed. All documents 
508.7 	considered in connection with an action shall be identified in such minutes. All minutes and 
508.8 	documents of a closed meeting shall remain under seal, subject to release only by a majority 
508.9 	vote of the Commission or order of a court of competent jurisdiction.
508.10 	(g) Financing of the Commission:
508.11 	(1) The Commission shall pay, or provide for the payment of, the reasonable expenses 
508.12 	of its establishment, organization, and ongoing activities.
508.13 	(2) The Commission may accept any and all appropriate revenue sources as provided 
508.14 	in paragraph (c), clause (13).
508.15 	(3) The Commission may levy on and collect an annual assessment from each member 
508.16 	state and impose fees on licensees of member states to whom it grants a multistate license 
508.17 	to cover the cost of the operations and activities of the Commission and its staff, which 
508.18 	must be in a total amount sufficient to cover its annual budget as approved each year for 
508.19 	which revenue is not provided by other sources. The aggregate annual assessment amount 
508.20 	for member states shall be allocated based upon a formula that the Commission shall 
508.21 	promulgate by rule.
508.22 	(4) The Commission shall not incur obligations of any kind prior to securing the funds 
508.23 	adequate to meet the same; nor shall the Commission pledge the credit of any of the member 
508.24 	states, except by and with the authority of the member state.
508.25 	(5) The Commission shall keep accurate accounts of all receipts and disbursements. The 
508.26 	receipts and disbursements of the Commission shall be subject to the financial review and 
508.27 	accounting procedures established under its bylaws. However, all receipts and disbursements 
508.28 	of funds handled by the Commission shall be subject to an annual financial review by a 
508.29 	certified or licensed public accountant, and the report of the financial review shall be included 
508.30 	in and become part of the annual report of the Commission.
508.31 	(h) Qualified immunity, defense, and indemnification:
508.32 	(1) The members, officers, executive director, employees, and representatives of the 
508.33 	Commission shall be immune from suit and liability, both personally and in their official 
509.1 	capacity, for any claim for damage to or loss of property or personal injury or other civil 
509.2 	liability caused by or arising out of any actual or alleged act, error, or omission  that occurred, 
509.3 	or that the person against whom the claim is made had a reasonable basis for believing 
509.4 	occurred within the scope of Commission employment, duties, or responsibilities, provided 
509.5 	that nothing in this paragraph shall be construed to protect any such person from suit or 
509.6 	liability for any damage, loss, injury, or liability caused by the intentional or willful or 
509.7 	wanton misconduct of that person. The procurement of  insurance of any type by the 
509.8 	Commission shall not in any way compromise or limit the immunity granted hereunder.
509.9 	(2) The Commission shall defend any member, officer, executive director, employee, 
509.10 	and representative of the Commission in any civil action seeking to impose liability arising 
509.11 	out of any actual or alleged act, error, or omission that occurred within the scope of 
509.12 	Commission employment, duties, or responsibilities, or as determined by the Commission 
509.13 	that the person against whom the claim is made had a reasonable basis for believing occurred 
509.14 	within the scope of Commission employment, duties, or responsibilities, provided that 
509.15 	nothing herein shall be construed to prohibit that person from retaining their own counsel 
509.16 	at their own expense, and provided further, that the actual or alleged act, error, or omission 
509.17 	did not result from that person's intentional or willful or wanton misconduct.
509.18 	(3) The Commission shall indemnify and hold harmless any member, officer, executive 
509.19 	director, employee, and representative of the Commission for the amount of any settlement 
509.20 	or judgment obtained against that person arising out of any actual or alleged act, error, or 
509.21 	omission that occurred within the scope of Commission employment, duties, or 
509.22 	responsibilities, or that such person had a reasonable basis for believing occurred within 
509.23 	the scope of Commission employment, duties, or responsibilities, provided that the actual 
509.24 	or alleged act, error, or omission did not result from the intentional or willful or wanton 
509.25 	misconduct of that person.
509.26 	(4) Nothing herein shall be construed as a limitation on the liability of any licensee for 
509.27 	professional malpractice or misconduct, which shall be governed solely by any other 
509.28 	applicable state laws.
509.29 	(5) Nothing in this Compact shall be interpreted to waive or otherwise abrogate a member 
509.30 	state's state action immunity or state action affirmative defense with respect to antitrust 
509.31 	claims under the Sherman Act, Clayton Act, or any other state or federal antitrust or 
509.32 	anticompetitive law or regulation.
509.33 	(6) Nothing in this Compact shall be construed to be a waiver of sovereign immunity 
509.34 	by the member states or by the Commission.
510.1 	(i) Notwithstanding paragraph (h), clause (1), the liability of the executive director, 
510.2 	employees, or representatives of the interstate commission, acting within the scope of their 
510.3 	employment or duties, may not exceed the limits of liability set forth under the constitution 
510.4 	and laws of this state for state officials, employees, and agents. This paragraph expressly 
510.5 	incorporates section 3.736, and neither expands nor limits the rights and remedies provided 
510.6 	under that statute.
510.7 	(j) Except for a claim alleging a violation of this compact, a claim against the commission, 
510.8 	its executive director, employees, or representatives alleging a violation of the constitution 
510.9 	and laws of this state may be brought in any county where the plaintiff resides. Nothing in 
510.10 	this paragraph creates a private right of action.

510.11 	Sec. 11. [148E.50] DATA SYSTEM.
510.12 	(a) The Commission shall provide for the development, maintenance, operation, and  
510.13 	utilization of a coordinated data system.
510.14 	(b) The Commission shall assign each applicant for a multistate license a unique identifier, 
510.15 	as determined by the rules of the Commission.
510.16 	(c) Notwithstanding any other provision of state law to the contrary, a member state 
510.17 	shall submit a uniform data set to the data system on all individuals to whom this Compact 
510.18 	is applicable as required by the rules of the Commission, including:
510.19 	(1) identifying information;
510.20 	(2) licensure data;
510.21 	(3) adverse actions against a license and information related thereto;
510.22 	(4) nonconfidential information related to alternative program participation, the beginning 
510.23 	and ending dates of such participation, and other information related to such participation 
510.24 	not made confidential under member state law;
510.25 	(5) any denial of application for licensure, and the reason for such denial;
510.26 	(6) the presence of current significant investigative information; and
510.27 	(7) other information that may facilitate the administration of this Compact or the 
510.28 	protection of the public, as determined by the rules of the Commission.
510.29 	(d) The records and information provided to a member state pursuant to this Compact 
510.30 	or through the data system, when certified by the Commission or an agent thereof, shall 
510.31 	constitute the authenticated business records of the Commission, and shall be entitled to 
511.1 	any associated hearsay exception in any relevant judicial, quasi-judicial, or administrative 
511.2 	proceedings in a member state.
511.3 	(e) Current significant investigative information pertaining to a licensee in any member 
511.4 	state will only be available to other member states.
511.5 	(f) It is the responsibility of the member states to report any adverse action against a 
511.6 	licensee and to monitor the database to determine whether adverse action has been taken 
511.7 	against a licensee. Adverse action information pertaining to a licensee in any member state 
511.8 	will be available to any other member state.
511.9 	(g) Member states contributing information to the data system may designate information 
511.10 	that may not be shared with the public without the express permission of the contributing 
511.11 	state.
511.12 	(h) Any information submitted to the data system that is subsequently expunged pursuant 
511.13 	to federal law or the laws of the member state contributing the information shall be removed 
511.14 	from the data system.

511.15 	Sec. 12. [148E.51] RULEMAKING.
511.16 	(a) The Commission shall promulgate reasonable rules in order to effectively and 
511.17 	efficiently implement and administer the purposes and provisions of the Compact. A rule 
511.18 	shall be invalid and have no force or effect only if a court of competent jurisdiction holds 
511.19 	that the rule is invalid because the Commission exercised its rulemaking authority in a 
511.20 	manner that is beyond the scope and purposes of the Compact, or the powers granted 
511.21 	hereunder, or based upon another applicable standard of review.
511.22 	(b) The rules of the Commission shall have the force of law in each member state, 
511.23 	provided however that where the rules of the Commission conflict with the laws of the 
511.24 	member state that establish the member state's laws, regulations, and applicable standards 
511.25 	that govern the practice of social work as held by a court of competent jurisdiction, the rules 
511.26 	of the Commission shall be ineffective in that state to the extent of the conflict.
511.27 	(c) The Commission shall exercise its rulemaking powers pursuant to the criteria set 
511.28 	forth in this section and the rules adopted thereunder. Rules shall become binding on the 
511.29 	day following adoption or the date specified in the rule or amendment, whichever is later.
511.30 	(d) If a majority of the legislatures of the member states rejects a rule or portion of a 
511.31 	rule, by enactment of a statute or resolution in the same manner used to adopt the Compact 
511.32 	within four years of the date of adoption of the rule, then such rule shall have no further 
511.33 	force and effect in any member state.
512.1 	(e) Rules shall be adopted at a regular or special meeting of the Commission.
512.2 	(f) Prior to adoption of a proposed rule, the commission shall hold a public hearing and 
512.3 	allow persons to provide oral and written comments, data, facts, opinions, and arguments.
512.4 	(g) Prior to adoption of a proposed rule by the Commission, and at least 30 days in 
512.5 	advance of the meeting at which the Commission will hold a public hearing on the proposed 
512.6 	rule, the Commission shall provide a notice of proposed rulemaking:
512.7 	(1) on the website of the Commission or other publicly accessible platform;
512.8 	(2) to persons who have requested notice of the Commission's notices of proposed 
512.9 	rulemaking; and
512.10 	(3) in such other way as the Commission may by rule specify.
512.11 	(h) The notice of proposed rulemaking shall include:
512.12 	(1) the time, date, and location of the public hearing at which the Commission will hear 
512.13 	public comments on the proposed rule and, if different, the time, date, and location of the 
512.14 	meeting where the Commission will consider and vote on the proposed rule;
512.15 	(2) if the hearing is held via telecommunication, video conference, or other electronic 
512.16 	means, the Commission shall include the mechanism for access to the hearing in the notice 
512.17 	of proposed rulemaking;
512.18 	(3) the text of the proposed rule and the reason therefor;
512.19 	(4) a request for comments on the proposed rule from any interested person; and
512.20 	(5) the manner in which interested persons may submit written comments.
512.21 	(i) All hearings will be recorded. A copy of the recording and all written comments and 
512.22 	documents received by the Commission in response to the proposed rule shall be available 
512.23 	to the public.
512.24 	(j) Nothing in this section shall be construed as requiring a separate hearing on each 
512.25 	rule. Rules may be grouped for the convenience of the Commission at hearings required by 
512.26 	this section.
512.27 	(k) The Commission shall, by majority vote of all members, take final action on the 
512.28 	proposed rule based on the rulemaking record and the full text of the rule.
512.29 	(1) The Commission may adopt changes to the proposed rule, provided the changes do 
512.30 	not enlarge the original purpose of the proposed rule.
513.1 	(2) The Commission shall provide an explanation of the reasons for substantive changes 
513.2 	made to the proposed rule as well as reasons for substantive changes not made that were 
513.3 	recommended by commenters.
513.4 	(3) The Commission shall determine a reasonable effective date for the rule. Except for 
513.5 	an emergency as provided in paragraph (l), the effective date of the rule shall be no sooner 
513.6 	than 30 days after issuing the notice that it adopted or amended the rule.
513.7 	(l) Upon determination that an emergency exists, the Commission may consider and 
513.8 	adopt an emergency rule with 48 hours' notice, with opportunity to comment, provided that 
513.9 	the usual rulemaking procedures provided in the Compact and in this section shall be 
513.10 	retroactively applied to the rule as soon as reasonably possible, in no event later than 90 
513.11 	days after the effective date of the rule. For the purposes of this provision, an emergency 
513.12 	rule is one that must be adopted immediately in order to:
513.13 	(1) meet an imminent threat to public health, safety, or welfare;
513.14 	(2) prevent a loss of Commission or member state funds;
513.15 	(3) meet a deadline for the promulgation of a rule that is established by federal law or 
513.16 	rule; or
513.17 	(4) protect public health and safety.
513.18 	(m) The Commission or an authorized committee of the Commission may direct revisions 
513.19 	to a previously adopted rule for purposes of correcting typographical errors, errors in format, 
513.20 	errors in consistency, or grammatical errors. Public notice of any revisions shall be posted 
513.21 	on the website of the Commission. The revision shall be subject to challenge by any person 
513.22 	for a period of 30 days after posting. The revision may be challenged only on grounds that 
513.23 	the revision results in a material change to a rule. A challenge shall be made in writing and 
513.24 	delivered to the Commission prior to the end of the notice period. If no challenge is made, 
513.25 	the revision will take effect without further action. If the revision is challenged, the revision 
513.26 	may not take effect without the approval of the Commission.
513.27 	(n) No member state's rulemaking requirements shall apply under this compact.

513.28 	Sec. 13. [148E.52] OVERSIGHT, DISPUTE RESOLUTION, AND ENFORCEMENT.
513.29 	(a) Oversight:
513.30 	(1) The executive and judicial branches of state government in each member state shall 
513.31 	enforce this Compact and take all actions necessary and appropriate to implement the 
513.32 	Compact.
514.1 	(2) Except as otherwise provided in this Compact, venue is proper and judicial 
514.2 	proceedings by or against the Commission shall be brought solely and exclusively in a court 
514.3 	of competent jurisdiction where the principal office of the Commission is located. The 
514.4 	Commission may waive venue and jurisdictional defenses to the extent it adopts or consents 
514.5 	to participate in alternative dispute resolution proceedings. Nothing herein shall affect or 
514.6 	limit the selection or propriety of venue in any action against a licensee for professional 
514.7 	malpractice, misconduct, or any such similar matter.
514.8 	(3) The Commission shall be entitled to receive service of process in any proceeding 
514.9 	regarding the enforcement or interpretation of the Compact and shall have standing to 
514.10 	intervene in such a proceeding for all purposes. Failure to provide the Commission service 
514.11 	of process shall render a judgment or order void as to the Commission, this Compact, or 
514.12 	promulgated rules.
514.13 	(b) Default, technical assistance, and termination:
514.14 	(1) If the Commission determines that a member state has defaulted in the performance 
514.15 	of its obligations or responsibilities under this Compact or the promulgated rules, the 
514.16 	Commission shall provide written notice to the defaulting state. The notice of default shall 
514.17 	describe the default, the proposed means of curing the default, and any other action that the 
514.18 	Commission may take, and shall offer training and specific technical assistance regarding 
514.19 	the default.
514.20 	(2) The Commission shall provide a copy of the notice of default to the other member 
514.21 	states.
514.22 	(c) If a state in default fails to cure the default, the defaulting state may be terminated 
514.23 	from the Compact upon an affirmative vote of a majority of the delegates of the member 
514.24 	states, and all rights, privileges, and benefits conferred on that state by this Compact may 
514.25 	be terminated on the effective date of termination. A cure of the default does not relieve the 
514.26 	offending state of obligations or liabilities incurred during the period of default.
514.27 	(d) Termination of membership in the Compact shall be imposed only after all other 
514.28 	means of securing compliance have been exhausted. Notice of intent to suspend or terminate 
514.29 	shall be given by the Commission to the governor, the majority and minority leaders of the 
514.30 	defaulting state's legislature, the defaulting state's state licensing authority, and each of the 
514.31 	member states' state licensing authority.
514.32 	(e) A state that has been terminated is responsible for all assessments, obligations, and 
514.33 	liabilities incurred through the effective date of termination, including obligations that 
514.34 	extend beyond the effective date of termination.
515.1 	(f) Upon the termination of a state's membership from this Compact, that state shall 
515.2 	immediately provide notice to all licensees within that state of such termination. The 
515.3 	terminated state shall continue to recognize all licenses granted pursuant to this Compact 
515.4 	for a minimum of six months after the date of said notice of termination.
515.5 	(g) The Commission shall not bear any costs related to a state that is found to be in 
515.6 	default or that has been terminated from the Compact, unless agreed upon in writing between 
515.7 	the Commission and the defaulting state.
515.8 	(h) The defaulting state may appeal the action of the Commission by petitioning the 
515.9 	United States District Court for the District of Columbia or the federal district where the 
515.10 	Commission has its principal offices. The prevailing party shall be awarded all costs of such 
515.11 	litigation, including reasonable attorney fees.
515.12 	(i) Dispute resolution:
515.13 	(1) Upon request by a member state, the Commission shall attempt to resolve disputes 
515.14 	related to the Compact that arise among member states and between member and nonmember 
515.15 	states.
515.16 	(2) The Commission shall promulgate a rule providing for both mediation and binding 
515.17 	dispute resolution for disputes as appropriate.
515.18 	(j) Enforcement:
515.19 	(1) By majority vote as provided by rule, the Commission may initiate legal action 
515.20 	against a member state in default in the United States District Court for the District of 
515.21 	Columbia or the federal district where the Commission has its principal offices to enforce 
515.22 	compliance with the provisions of the Compact and its promulgated rules. The relief sought 
515.23 	may include both injunctive relief and damages. In the event judicial enforcement is 
515.24 	necessary, the prevailing party shall be awarded all costs of such litigation, including 
515.25 	reasonable attorney fees. The remedies herein shall not be the exclusive remedies of the 
515.26 	Commission. The Commission may pursue any other remedies available under federal or 
515.27 	the defaulting member state's law.
515.28 	(2) A member state may initiate legal action against the Commission in the United States 
515.29 	District Court for the District of Columbia or the federal district where the Commission has 
515.30 	its principal offices to enforce compliance with the provisions of the Compact and its 
515.31 	promulgated rules. The relief sought may include both injunctive relief and damages. In the 
515.32 	event judicial enforcement is necessary, the prevailing party shall be awarded all costs of 
515.33 	such litigation, including reasonable attorney fees.
516.1 	(3) No person other than a member state shall enforce this compact against the 
516.2 	Commission.

516.3 	Sec. 14. [148E.53] EFFECTIVE DATE, WITHDRAWAL, AND AMENDMENT.
516.4 	(a) The Compact shall come into effect on the date on which the Compact statute is 
516.5 	enacted into law in the seventh member state.
516.6 	(1) On or after the effective date of the Compact, the Commission shall convene and 
516.7 	review the enactment of each of the first seven member states ("charter member states") to 
516.8 	determine if the statute enacted by each such charter member state is materially different 
516.9 	than the model Compact statute.
516.10 	(i) A charter member state whose enactment is found to be materially different from the 
516.11 	model Compact statute shall be entitled to the default process set forth in section 148E.52.
516.12 	(ii) If any member state is later found to be in default, or is terminated or withdraws 
516.13 	from the Compact, the Commission shall remain in existence and the Compact shall remain 
516.14 	in effect even if the number of member states should be less than seven.
516.15 	(2) Member states enacting the compact subsequent to the seven initial charter member 
516.16 	states shall be subject to the process set forth in section 148E.49, paragraph (c), clause (21), 
516.17 	to determine if their enactments are materially different from the model Compact statute 
516.18 	and whether they qualify for participation in the Compact.
516.19 	(3) All actions taken for the benefit of the Commission or in furtherance of the purposes 
516.20 	of the administration of the Compact prior to the effective date of the Compact or the 
516.21 	Commission coming into existence shall be considered to be actions of the Commission 
516.22 	unless specifically repudiated by the Commission.
516.23 	(4) Any state that joins the Compact subsequent to the Commission's initial adoption of 
516.24 	the rules and bylaws shall be subject to the rules and bylaws as they exist on the date on 
516.25 	which the Compact becomes law in that state. Any rule that has been previously adopted 
516.26 	by the Commission shall have the full force and effect of law on the day the Compact 
516.27 	becomes law in that state.
516.28 	(b) Any member state may withdraw from this Compact by enacting a statute repealing 
516.29 	the same.
516.30 	(1) A member state's withdrawal shall not take effect until 180 days after enactment of 
516.31 	the repealing statute.
517.1 	(2) Withdrawal shall not affect the continuing requirement of the withdrawing state's 
517.2 	licensing authority to comply with the investigative and adverse action reporting requirements 
517.3 	of this Compact prior to the effective date of withdrawal.
517.4 	(3) Upon the enactment of a statute withdrawing from this Compact, a state shall 
517.5 	immediately provide notice of such withdrawal to all licensees within that state. 
517.6 	Notwithstanding any subsequent statutory enactment to the contrary, such withdrawing 
517.7 	state shall continue to recognize all licenses granted pursuant to this Compact for a minimum 
517.8 	of 180 days after the date of such notice of withdrawal.
517.9 	(c) Nothing contained in this Compact shall be construed to invalidate or prevent any 
517.10 	licensure agreement or other cooperative arrangement between a member state and a 
517.11 	nonmember state that does not conflict with the provisions of this Compact.
517.12 	(d) This Compact may be amended by the member states. No amendment to this Compact 
517.13 	shall become effective and binding upon any member state until it is enacted into the laws 
517.14 	of all member states.

517.15 	Sec. 15. [148E.54] CONSTRUCTION AND SEVERABILITY.
517.16 	(a) This Compact and the Commission's rulemaking authority shall be liberally construed 
517.17 	so as to effectuate the purposes, and the implementation and administration of the Compact. 
517.18 	Provisions of the Compact expressly authorizing or requiring the promulgation of rules 
517.19 	shall not be construed to limit the Commission's rulemaking authority solely for those 
517.20 	purposes.
517.21 	(b) The provisions of this Compact shall be severable and if any phrase, clause, sentence, 
517.22 	or provision of this Compact is held by a court of competent jurisdiction to be contrary to 
517.23 	the constitution of any member state, a state seeking participation in the Compact, or of the 
517.24 	United States, or the applicability thereof to any government, agency, person or circumstance 
517.25 	is held to be unconstitutional by a court of competent jurisdiction, the validity of the 
517.26 	remainder of this Compact and the applicability thereof to any other government, agency, 
517.27 	person or circumstance shall not be affected thereby.
517.28 	(c) Notwithstanding paragraph (b), the Commission may deny a state's participation in 
517.29 	the Compact or, in accordance with the requirements of section 148E.52, paragraph (b), 
517.30 	terminate a member state's participation in the Compact, if it determines that a constitutional 
517.31 	requirement of a member state is a material departure from the Compact. Otherwise, if this 
517.32 	Compact shall be held to be contrary to the constitution of any member state, the Compact 
518.1 	shall remain in full force and effect as to the remaining member states and in full force and 
518.2 	effect as to the member state affected as to all severable matters.

518.3 	Sec. 16. [148E.55] CONSISTENT EFFECT AND CONFLICT WITH OTHER STATE 
518.4 	LAWS.
518.5 	(a) A licensee providing services in a remote state under a multistate authorization to 
518.6 	practice shall adhere to the laws and regulations, including laws, regulations, and applicable 
518.7 	standards, of the remote state where the client is located at the time care is rendered.
518.8 	(b) Nothing herein shall prevent or inhibit the enforcement of any other law of a member 
518.9 	state that is not inconsistent with the Compact.
518.10 	(c) Any laws, statutes, regulations, or other legal requirements in a member state in 
518.11 	conflict with the Compact are superseded to the extent of the conflict.
518.12 	(d) All permissible agreements between the Commission and the member states are 
518.13 	binding in accordance with their terms.

518.14 	ARTICLE 33
518.15 	APPROPRIATIONS

518.16 	Section 1. COMMISSIONER OF HEALTH.
 518.17 		Subdivision 1.Registration of transfer care specialists. $198,000 in fiscal year 2025 
518.18 	is appropriated from the state government special revenue fund to the commissioner of 
518.19 	health to implement Minnesota Statutes, section 149A.47. The state government special 
518.20 	revenue fund base for this appropriation is $105,000 in fiscal year 2026 and $105,000 in 
518.21 	fiscal year 2027.
518.22 		Subd. 2.Licensure of speech-language pathology assistants. $105,000 in fiscal year 
518.23 	2025 is appropriated from the state government special revenue fund to the commissioner 
518.24 	of health to implement licensing requirements for speech-language pathology assistants 
518.25 	under Minnesota Statutes, section 148.5181. The state government special revenue fund 
518.26 	base for this appropriation is $22,000 in fiscal year 2026 and $22,000 in fiscal year 2027.
518.27 		Subd. 3.Audiology and speech-language interstate compact. $279,000 in fiscal year 
518.28 	2025 is appropriated from the state government special revenue fund to the commissioner 
518.29 	of health to implement the audiology and speech-language pathology interstate compact 
518.30 	under Minnesota Statutes, section 148.5185. The state government special revenue fund 
518.31 	base for this appropriation is $106,000 in fiscal year 2026 and $106,000 in fiscal year 2027.

519.1 	Sec. 2. BOARD OF PSYCHOLOGY; LICENSING REQUIREMENTS FOR 
519.2 	BEHAVIOR ANALYSTS.
 519.3 	$81,000 in fiscal year 2025 is appropriated from the state government special revenue 
519.4 	fund to the Board of Psychology to implement licensing requirements for behavior analysts 
519.5 	under Minnesota Statutes, sections 148.9981 to 148.9995. The state government special 
519.6 	revenue fund base for this appropriation is $47,000 in fiscal year 2026 and $47,000 in fiscal 
519.7 	year 2027.

519.8 	Sec. 3. BOARD OF VETERINARY MEDICINE; LICENSING REQUIREMENTS 
519.9 	FOR VETERINARY TECHNICIANS.
 519.10 	$23,000 in fiscal year 2025 is appropriated from the state government special revenue 
519.11 	fund to the Board of Veterinary Medicine to implement Minnesota Statutes, section 156.077. 
519.12 	The state government special revenue fund base for this appropriation is $52,000 in fiscal 
519.13 	year 2026 and $52,000 in fiscal year 2027.

519.14 	Sec. 4. BOARD OF DENTISTRY.
 519.15 		Subdivision 1.Licensure by credential for dental assistants. $2,000 in fiscal year 
519.16 	2025 is appropriated from the state government special revenue fund to the Board of Dentistry 
519.17 	to implement Minnesota Statutes, section 150A.06, subdivision 8. The state government 
519.18 	special revenue fund base for this appropriation is $3,000 in fiscal year 2026 and $5,000 in 
519.19 	fiscal year 2027.
519.20 		Subd. 2.Dentist and dental hygienist compact. $41,000 in fiscal year 2025 is 
519.21 	appropriated from the state government special revenue fund to the Board of Dentistry to 
519.22 	implement the dentist and dental hygienist compact under Minnesota Statutes, section 
519.23 	150A.051. The state government special revenue fund base for this appropriation is $42,000 
519.24 	in fiscal year 2026 and $42,000 in fiscal year 2027.

519.25 	Sec. 5. BOARD OF MARRIAGE AND FAMILY THERAPY; LICENSED 
519.26 	MARRIAGE AND FAMILY THERAPIST GUEST LICENSE.
 519.27 	$18,000 in fiscal year 2025 is appropriated from the state government special revenue 
519.28 	fund to the Board of Marriage and Family Therapy to implement Minnesota Statutes, section 
519.29 	148B.331. The state government special revenue fund base for this appropriation is $1,000 
519.30 	in fiscal year 2026 and $1,000 in fiscal year 2027.

520.1 	Sec. 6. BOARD OF SOCIAL WORK.
 520.2 		Subdivision 1.Social worker provisional licensing. $133,000 in fiscal year 2025 is 
520.3 	appropriated from the state government special revenue fund to the Board of Social Work 
520.4 	to implement modifications to provisional licensure under Minnesota Statutes, chapters 
520.5 	148D and 148E. The state government special revenue fund base for this appropriation is 
520.6 	$80,000 in fiscal year 2026 and $80,000 in fiscal year 2027.
520.7 		Subd. 2.Social work interstate compact. $3,000 in fiscal year 2025 is appropriated 
520.8 	from the state government special revenue fund to the Board of Social Work to implement 
520.9 	the social work interstate compact under Minnesota Statutes, sections 148E.40 to 148E.55. 
520.10 	The state government special revenue fund base for this appropriation is $149,000 in fiscal 
520.11 	year 2026 and $83,000 in fiscal year 2027.

520.12 	Sec. 7. BOARD OF BEHAVIORAL HEALTH AND THERAPY; LICENSED 
520.13 	PROFESSIONAL COUNSELOR INTERSTATE COMPACT.
520.14 	$159,000 in fiscal year 2025 is appropriated from the state government special revenue 
520.15 	fund to the Board of Behavioral Health and Therapy to implement the licensed professional 
520.16 	counselor interstate compact under Minnesota Statutes, section 148B.75. The state 
520.17 	government special revenue fund base for this appropriation is $95,000 in fiscal year 2026 
520.18 	and $95,000 in fiscal year 2027.

520.19 	Sec. 8. BOARD OF MEDICAL PRACTICE; PHYSICIAN ASSISTANT LICENSURE 
520.20 	COMPACT.
 520.21 	$113,000 in fiscal year 2025 is appropriated from the state government special revenue 
520.22 	fund to the Board of Medical Practice to implement the physician assistant licensure compact 
520.23 	under Minnesota Statutes, section 148.675. The state government special revenue fund base 
520.24 	for this appropriation is $142,000 in fiscal year 2026 and $96,000 in fiscal year 2027.

520.25 	Sec. 9. BOARD OF OCCUPATIONAL THERAPY PRACTICE; OCCUPATIONAL 
520.26 	THERAPY LICENSURE COMPACT.
 520.27 	$143,000 in fiscal year 2025 is appropriated from the state government special revenue 
520.28 	fund to the Board of Occupational Therapy Practice to implement the occupational therapy 
520.29 	licensure compact under Minnesota Statutes, section 148.645. The state government special 
520.30 	revenue fund base for this appropriation is $80,000 in fiscal year 2026 and $80,000 in fiscal 
520.31 	year 2027.

521.1 	Sec. 10. BOARD OF PHYSICAL THERAPY; PHYSICAL THERAPY LICENSURE 
521.2 	COMPACT.
 521.3 	$160,000 in fiscal year 2025 is appropriated from the state government special revenue 
521.4 	fund to the Board of Physical Therapy to implement the physical therapy licensure compact 
521.5 	under Minnesota Statutes, section 148.676. The state government special revenue fund base 
521.6 	for this appropriation is $95,000 in fiscal year 2026 and $95,000 in fiscal year 2027.

521.7 	Sec. 11. EFFECTIVE DATE.
 521.8 	This article is effective July 1, 2024.

521.9 	ARTICLE 34
521.10 	HIGHER EDUCATION APPROPRIATIONS

521.11 	Section 1. Laws 2022, chapter 42, section 2, is amended to read:
521.12 	Sec. 2. APPROPRIATION; ALS RESEARCH.
 521.13 	(a) $20,000,000 $396,000 in fiscal year 2023 is appropriated from the general fund to 
521.14 	the commissioner of the Office of Higher Education to award competitive grants to applicants 
521.15 	for research into amyotrophic lateral sclerosis (ALS). The commissioner may work with 
521.16 	the Minnesota Department of Health to administer the grant program, including identifying 
521.17 	clinical and translational research and innovations, developing outcomes and objectives 
521.18 	with the goal of bettering the lives of individuals with ALS and finding a cure for the disease, 
521.19 	and application review and grant recipient selection. Not more than $400,000 $396,000
521.20 	may be used by the commissioner to administer the grant program. This is a onetime 
521.21 	appropriation. Notwithstanding Minnesota Statutes, section 16A.28, unencumbered balances 
521.22 	under this section do not cancel until June 30, 2026.
521.23 	(b) $19,604,000 in fiscal year 2024 is appropriated from the general fund to the 
521.24 	commissioner of the Office of Higher Education to award competitive grants to applicants 
521.25 	for research into amyotrophic lateral sclerosis (ALS). The commissioner may work with 
521.26 	the Minnesota Department of Health to administer the grant program, including identifying 
521.27 	clinical and translational research and innovations, developing outcomes and objectives 
521.28 	with the goal of bettering the lives of individuals with ALS and finding a cure for the disease, 
521.29 	and application review and grant recipient selection. Up to $15,000,000 may be used by the 
521.30 	commissioner for grants to the Amyotrophic Lateral Sclerosis Association, Never Surrender, 
521.31 	or other similar organizations to award and administer competitive grants to applicants for 
521.32 	research into ALS under this section. This is a onetime appropriation. Notwithstanding 
522.1 	Minnesota Statutes, section 16A.28, unencumbered balances under this section do not cancel 
522.2 	until June 30, 2029. Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, 
522.3 	the commissioner, the Amyotrophic Lateral Sclerosis Association, Never Surrender, and 
522.4 	other similar organizations may use up to a total of five percent of this appropriation for 
522.5 	administrative costs.
522.6 	(b) (c) Grants shall be awarded to support clinical and translational research related to 
522.7 	ALS. Research topics may include but are not limited to environmental factors, disease 
522.8 	mechanisms, disease models, biomarkers, drug development, clinical studies, precision 
522.9 	medicine, medical devices, assistive technology, and cognitive studies.
522.10 	(c) (d) Eligible applicants for the grants are research facilities, universities, and health 
522.11 	systems located in Minnesota. Applicants must submit proposals to the commissioner in 
522.12 	the time, form, and manner established by the commissioner. Applicants may coordinate 
522.13 	research endeavors and submit a joint application. When reviewing the proposals, the 
522.14 	commissioner shall make an effort to avoid approving a grant for an applicant whose research 
522.15 	is duplicative of an existing grantee's research.
522.16 	(d) (e) Beginning January 15, 2023, and annually thereafter until January 15, 2027 2030, 
522.17 	the commissioner shall submit a report to the legislature specifying the applicants receiving 
522.18 	grants under this section, the amount of each grant, the purposes for which the grant funds 
522.19 	were used, and the amount of the appropriation that is unexpended. The report must also 
522.20 	include relevant findings, results, and outcomes of the grant program, and any other 
522.21 	information which the commissioner deems significant or useful.
522.22 	(e) This is a onetime appropriation. Notwithstanding Minnesota Statutes, section 16A.28, 
522.23 	unencumbered balances under this section do not cancel until June 30, 2026.

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

522.25 	Sec. 2. Laws 2023, chapter 41, article 1, section 2, subdivision 35, is amended to read:

522.26	Subd. 35.Hunger-Free Campus Grants
 		1,500,000
		1,000,000
	
522.27 	For the Hunger-Free Campus program under 
522.28 	Minnesota Statutes, section 135A.137. Of this 
522.29 	amount, up to $500,000 the first year is for 
522.30 	grants not to exceed $25,000 to institutions 
522.31 	for equipment necessary to operate an 
522.32 	on-campus food pantry, and is available until 
522.33 	June 30, 2026. The commissioner shall 
523.1 	establish an application and process for 
523.2 	distributing the grant funds. This appropriation 
523.3 	is available until June 30, 2026.

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

523.5 	Sec. 3. Laws 2023, chapter 41, article 1, section 2, subdivision 36, is amended to read:

523.6
523.7	Subd. 36.Fostering Independence Higher 
Education Grants
 		4,247,000
		4,416,000
9,456,000
	
523.8 	$4,247,000 the first year and $4,416,000
523.9 	$9,456,000 the second year are for grants to 
523.10 	eligible students under Minnesota Statutes, 
523.11 	section 136A.1241. The Office of Higher 
523.12 	Education may use no more than three percent 
523.13 	of the appropriation to administer grants. The 
523.14 	base for this appropriation is $4,416,000 for 
523.15 	fiscal year 2026 and thereafter.

523.16 	Sec. 4. Laws 2023, chapter 41, article 1, section 2, subdivision 49, as amended by Laws 
523.17 	2024, chapter 85, section 111, is amended to read:

523.19523.18
	Subd. 49.North Star Promise
 		-0-
		117,226,000
112,186,000
	
523.20 	$117,226,000 $112,186,000 the second year 
523.21 	is transferred from the general fund to the 
523.22 	account in the special revenue fund under 
523.23 	Minnesota Statutes, section 136A.1465, 
523.24 	subdivision 8. The base for the transfer is 
523.25 	$49,500,000 in fiscal year 2026 and thereafter.

523.26 	Sec. 5. Laws 2023, chapter 41, article 1, section 4, subdivision 2, is amended to read:

523.27	Subd. 2.Operations and Maintenance
 		686,558,000
		676,294,000
	
523.28 	(a) $15,000,000 in fiscal year 2024 and 
523.29 	$15,000,000 in fiscal year 2025 are to: (1) 
523.30 	increase the medical school's research 
523.31 	capacity; (2) improve the medical school's 
523.32 	ranking in National Institutes of Health 
524.1 	funding; (3) ensure the medical school's 
524.2 	national prominence by attracting and 
524.3 	retaining world-class faculty, staff, and 
524.4 	students; (4) invest in physician training 
524.5 	programs in rural and underserved 
524.6 	communities; and (5) translate the medical 
524.7 	school's research discoveries into new 
524.8 	treatments and cures to improve the health of 
524.9 	Minnesotans.
524.10 	(b) $7,800,000 in fiscal year 2024 and 
524.11 	$7,800,000 in fiscal year 2025 are for health 
524.12 	training restoration. This appropriation must 
524.13 	be used to support all of the following: (1) 
524.14 	faculty physicians who teach at eight residency 
524.15 	program sites, including medical resident and 
524.16 	student training programs in the Department 
524.17 	of Family Medicine; (2) the Mobile Dental 
524.18 	Clinic; and (3) expansion of geriatric 
524.19 	education and family programs.
524.20 	(c) $4,000,000 in fiscal year 2024 and 
524.21 	$4,000,000 in fiscal year 2025 are for the 
524.22 	Minnesota Discovery, Research, and 
524.23 	InnoVation Economy funding program for 
524.24 	cancer care research.
524.25 	(d) $500,000 in fiscal year 2024 and $500,000 
524.26 	in fiscal year 2025 are for the University of 
524.27 	Minnesota, Morris branch, to cover the costs 
524.28 	of tuition waivers under Minnesota Statutes, 
524.29 	section 137.16.
524.30 	(e) $5,000,000 in fiscal year 2024 and 
524.31 	$5,000,000 in fiscal year 2025 are for 
524.32 	systemwide safety and security measures on 
524.33 	University of Minnesota campuses. The base 
524.34 	amount for this appropriation is $1,000,000 
524.35 	in fiscal year 2026 and later.
525.1 	(f) $366,000 in fiscal year 2024 and $366,000 
525.2 	in fiscal year 2025 are for unemployment 
525.3 	insurance aid under Minnesota Statutes, 
525.4 	section 268.193.
525.5 	(g) $10,000,000 the first year is for programs 
525.6 	at the University of Minnesota Medical School 
525.7 	Campus on the CentraCare Health System 
525.8 	Campus in St. Cloud. This appropriation may 
525.9 	be used for tuition support, a residency 
525.10 	program, a rural health research program, a 
525.11 	program to target scholarships to students from 
525.12 	diverse backgrounds, and a scholarship 
525.13 	program targeted at students who will practice 
525.14 	in rural areas including a scholarship program 
525.15 	targeted at students who will practice in rural 
525.16 	areas and targeted at students from diverse 
525.17 	backgrounds; costs associated with opening 
525.18 	and operating a new regional campus; costs 
525.19 	associated with the expansion of a residency 
525.20 	program; and costs associated with starting 
525.21 	and operating a rural health research program. 
525.22 	This appropriation is available until June 30, 
525.23 	2027, and must be spent on for activities on 
525.24 	or associated with the CentraCare Health 
525.25 	System Campus in the greater St. Cloud area. 
525.26 	This is a onetime appropriation.
525.27 	(h) $374,000 the first year and $110,000 the 
525.28 	second year are to pay the cost of supplies and 
525.29 	equipment necessary to provide access to 
525.30 	menstrual products for purposes of article 2, 
525.31 	section 2.
525.32 	(i) The total operations and maintenance base 
525.33 	for fiscal year 2026 and later is $672,294,000.

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

526.1 	Sec. 6. APPROPRIATION; KIDS ON CAMPUS INITIATIVE.
 526.2 	$500,000 in fiscal year 2025 is appropriated from the general fund to the Board of 
526.3 	Trustees of the Minnesota State Colleges and Universities to participate in the Kids on 
526.4 	Campus initiative with the National Head Start Association and the Association of 
526.5 	Community College Trustees. This appropriation may be used for a temporary statewide 
526.6 	project coordinator, stipends to campuses and Head Start centers where letters of intent to 
526.7 	officially form a partnership have been signed, engaging with local Head Start programs, 
526.8 	and other costs associated with creating campus Head Start partnerships. Stipends shall be 
526.9 	used to support the formation of parenting student advisory panels to gather perspective 
526.10 	and feedback on proposed partnerships. The duties of the temporary statewide project 
526.11 	coordinator include assessing the feasibility of partnerships between Minnesota State Colleges 
526.12 	and Universities campuses and Head Start programs across the state, consulting with the 
526.13 	Minnesota Head Start Association and existing Head Start partnership programs to develop 
526.14 	best practices, working with campus-based navigators for parenting students to provide 
526.15 	resources for financial aid and basic needs support to Head Start programs, and developing 
526.16 	strategies to grow the early childhood care and education workforce through partnerships 
526.17 	between Head Start programs and early childhood degree and certificate programs. This is 
526.18 	a onetime appropriation and is available until June 30, 2026.

526.19 	ARTICLE 35
526.20 	POLICY PROVISIONS

526.21 	Section 1. [135A.062] CONSIDERATION OF CRIMINAL RECORDS LIMITED.
526.22 		Subdivision 1.Applicability. This section applies to postsecondary institutions under 
526.23 	section 136A.155, clause (1), except that the Board of Regents of the University of Minnesota 
526.24 	is requested to comply with this section.
526.25 		Subd. 2.Definition. As used in this section, "a violent felony or sexual assault" includes 
526.26 	a felony-level violation or attempted violation of section 609.185; 609.19; 609.195; 609.20; 
526.27 	609.221; 609.2242, subdivision 4; 609.2247; 609.245, subdivision 1; 609.247, subdivision 
526.28 	2; 609.282; 609.322; 609.342; 609.343; 609.344; 609.345; 609.3451; 609.3458; 609.561, 
526.29 	subdivision 1 or 2; 609.582, subdivision 1; 609.66, subdivision 1e; or 609.749; or a statute 
526.30 	from another state, the United States, or a foreign jurisdiction, in conformity with any of 
526.31 	these sections.
526.32 		Subd. 3.Consideration of criminal records limited. A postsecondary institution may 
526.33 	not inquire into, consider, or require disclosure of the criminal record or criminal history 
527.1 	of an applicant for admission. After a postsecondary institution has made an offer of 
527.2 	admission, the postsecondary institution may inquire into, consider, or require disclosure 
527.3 	of a conviction or delinquency adjudication that occurred within the previous five years for 
527.4 	a violent felony or sexual assault. The postsecondary institution must provide the applicant 
527.5 	with an opportunity to submit an explanatory statement, letters of recommendation, evidence 
527.6 	of rehabilitation, and any other supporting documents. The institution must provide clear 
527.7 	and detailed instructions and guidance to applicants related to what criminal history requires 
527.8 	disclosure. The institution must not require the applicant to provide official records of 
527.9 	criminal history. A postsecondary institution that rescinds an offer of admission must:
527.10 	(1) provide an explanation of the basis for the decision to rescind the offer of admission; 
527.11 	and
527.12 	(2) provide the applicant with an opportunity to appeal the decision to rescind.
527.13 		Subd. 4.Other information. This section shall not prohibit or limit a postsecondary 
527.14 	institution from inquiring about student conduct records at the applicant's prior postsecondary 
527.15 	institution after making an offer of admission. This section shall not prohibit or limit a 
527.16 	postsecondary institution from inquiring about a student's ability to meet licensure 
527.17 	requirements in a professional program after making an offer of admission.
527.18 		Subd. 5.Limitation on admissibility. (a) A postsecondary institution that complies 
527.19 	with this section is immune from liability in a civil action arising out of the institution's 
527.20 	decision to admit a student with a criminal history or the institution's failure to conduct a 
527.21 	criminal background check.
527.22 	(b) Nothing in this section creates or establishes a legal duty upon a postsecondary 
527.23 	institution to inquire into or require disclosure of the criminal history or criminal convictions 
527.24 	of a student or an applicant for admission.

527.25 	Sec. 2. Minnesota Statutes 2023 Supplement, section 135A.121, subdivision 2, is amended 
527.26 	to read:
527.27 		Subd. 2.Eligibility. To be eligible each year for the program a student must:
527.28 	(1) be enrolled in an undergraduate certificate, diploma, or degree program at the 
527.29 	University of Minnesota or a Minnesota state college or university;
527.30 	(2) be either (i) a Minnesota resident for resident tuition purposes who is an enrolled 
527.31 	member or citizen of a federally recognized American Indian Tribe or Canadian First Nation, 
527.32 	or (ii) an enrolled member or citizen of a Minnesota Tribal Nation, regardless of resident 
527.33 	tuition status; and
528.1 	(3) have not (i) obtained a baccalaureate degree, or (ii) been enrolled for 180 credits 12 
528.2 	semesters or the equivalent, excluding courses taken that qualify as developmental education 
528.3 	or below college-level.; and
528.4 	(4) meet satisfactory academic progress as defined under section 136A.101, subdivision 
528.5 	10.

528.6 	Sec. 3. [135A.144] TRANSCRIPT ACCESS.
528.7 		Subdivision 1.Definitions. (a) The terms defined in this subdivision apply to this section.
528.8 	(b) "Debt" means any money, obligation, claim, or sum, due or owed, or alleged to be 
528.9 	due or owed, from a student. Debt does not include the fee, if any, charged to all students 
528.10 	for the actual costs of providing the transcripts.
528.11 	(c) "School" means a public institution governed by the Board of Trustees of the 
528.12 	Minnesota State Colleges and Universities, private postsecondary educational institution 
528.13 	as defined under section 136A.62 or 136A.821, or public or private entity that is responsible 
528.14 	for providing transcripts to current or former students of an educational institution. 
528.15 	Institutions governed by the Board of Regents of the University of Minnesota are requested 
528.16 	to comply with this section.
528.17 	(d) "Transcript" means the statement of an individual's academic record, including 
528.18 	official transcripts or the certified statement of an individual's academic record provided 
528.19 	by a school, and unofficial transcripts or the uncertified statement of an individual's academic 
528.20 	record provided by a school.
528.21 		Subd. 2.Prohibited practices. (a) A school must not refuse to provide a transcript for 
528.22 	a current or former student because the student owes a debt to the school if:
528.23 	(1) the debt owed is less than $1,000;
528.24 	(2) the student has entered into and, as determined by the institution, is in compliance 
528.25 	with a payment plan with the school;
528.26 	(3) the transcript request is made by a prospective employer for the student;
528.27 	(4) the school has sent the debt for repayment to the Department of Revenue or to a 
528.28 	collection agency, as defined in section 332.31, subdivision 3, external to the institution 
528.29 	and the debt has not been returned to the institution unpaid; or
528.30 	(5) the person is incarcerated at a Minnesota correctional facility.
529.1 	(b) A school must not charge an additional or higher fee for obtaining a transcript or 
529.2 	provide less favorable treatment of a transcript request because a student owes a debt to the 
529.3 	originating school.
529.4 		Subd. 3.Institutional policy. (a) A school that uses transcript issuance as a tool for debt 
529.5 	collection must have a policy accessible to students that outlines how the school collects 
529.6 	on debts owed to the school.
529.7 	(b) A school shall seek to use transcript issuance as a tool for debt collection for the 
529.8 	fewest number of cases possible and in a manner that allows for the quickest possible 
529.9 	resolution of the debt benefitting the student's educational progress.

529.10 	Sec. 4. Minnesota Statutes 2022, section 135A.15, as amended by Laws 2023, chapter 52, 
529.11 	article 5, section 79, is amended to read:
529.12 	135A.15 CAMPUS SEXUAL HARASSMENT AND VIOLENCE MISCONDUCT
529.13 	POLICY.
529.14 		Subdivision 1.Applicability; policy required. (a) This section applies to the following 
529.15 	postsecondary institutions:
529.16 	(1) institutions governed by the Board of Trustees of the Minnesota State Colleges and 
529.17 	Universities; and
529.18 	(2) private postsecondary institutions that offer in-person courses on a campus located 
529.19 	in Minnesota and which are eligible institutions as defined in section 136A.103, provided 
529.20 	that a private postsecondary institution with a systemwide enrollment of fewer than 100 
529.21 	students in the previous academic year is exempt from subdivisions 4 to 10 paragraph (a), 
529.22 	that are participating in the federal program under Title IV of the Higher Education Act of 
529.23 	1965, Public Law 89-329, as amended.
529.24 	Institutions governed by the Board of Regents of the University of Minnesota are 
529.25 	requested to comply with this section.
529.26 	(b) A postsecondary institution must adopt a clear, understandable written policy on 
529.27 	sexual harassment and sexual violence misconduct that informs victims of their rights under 
529.28 	the crime victims bill of rights, including the right to assistance from the Crime Victims 
529.29 	Reimbursement Board and the commissioner of public safety. The policy must apply to 
529.30 	students and employees and must provide information about their rights and duties. The 
529.31 	policy must apply to criminal incidents against a student or employee of a postsecondary 
529.32 	institution occurring on property owned or leased by the postsecondary system or institution 
529.33 	or at any activity, program, organization, or event sponsored by the system or institution, 
530.1 	or by a fraternity and or sorority, or any activity, program, organization, or event sponsored 
530.2 	by the system or institution, or by a fraternity or sorority, regardless of whether the activity, 
530.3 	program, organization, or event occurs on or off property owned or leased by the 
530.4 	postsecondary system or institution. It must include procedures for reporting incidents of 
530.5 	sexual harassment or sexual violence misconduct and for disciplinary actions against 
530.6 	violators. During student registration, a postsecondary institution shall provide each student 
530.7 	with information regarding its policy. A copy of the policy also shall be posted at appropriate 
530.8 	locations on campus at all times.
530.9 		Subd. 1a.Sexual assault definition Definitions. (a) For the purposes of this section, 
530.10 	the following terms have the meanings given.
530.11 	(b) "Advisor" means a person who is selected by a responding or reporting party to serve 
530.12 	as a support during a campus investigation and disciplinary process. This person may be 
530.13 	an attorney. An advisor serves as a support to a party by offering comfort or attending 
530.14 	meetings.
530.15 	(c) "Domestic violence" has the meaning giving in section 518B.01, subdivision 2.
530.16 	(b) (d) "Incident" means one report of sexual assault misconduct to a postsecondary 
530.17 	institution, regardless of the number of complainants included in the report, the number of 
530.18 	respondents included in the report, and whether or not the identity of any party is known 
530.19 	by the reporting postsecondary institution. Incident encompasses all nonconsensual events 
530.20 	included within one report if multiple events have been identified.
530.21 	(e) "Intimate partner violence" means any physical or sexual harm or a pattern of any 
530.22 	other coercive behavior committed, enabled, or solicited to gain or maintain power and 
530.23 	control over a victim, including verbal, psychological, economic, or technological abuse 
530.24 	that may or may not constitute criminal behavior against an individual, that may be classified 
530.25 	as a sexual misconduct, dating violence, or domestic violence caused by:
530.26 	(1) a current or former spouse of the individual; or
530.27 	(2) a person in a sexual or romantic relationship with the individual.
530.28 	(f) "Nonconsensual dissemination of sexual images" has the meaning given in section 
530.29 	617.261.
530.30 	(g) "Reporting party" means the party in a disciplinary proceeding who has reported 
530.31 	being subjected to conduct or communication that could constitute sexual misconduct.
531.1 	(h) "Responding party" means the party in a disciplinary proceeding who has been 
531.2 	reported to be the perpetrator of conduct or communication that could constitute sexual 
531.3 	misconduct.
531.4 	(c) (i) "Sexual assault" means rape, sex offenses - fondling, sex offenses - incest, or sex 
531.5 	offenses - statutory rape as defined in Code of Federal Regulations, title 34, part 668, subpart 
531.6 	D, appendix A, as amended.
531.7 	(j) "Sexual extortion" has the meaning given in section 609.3458.
531.8 	(k) "Sex trafficking" has the meaning given in section 609.321, subdivision 7a.
531.9 	(l) "Sexual harassment" has the meaning given in section 363A.03, subdivision 43.
531.10 	(m) "Sexual misconduct" means an incident of sexual violence, intimate partner violence, 
531.11 	domestic violence, sexual assault, sexual harassment, nonconsensual distribution of sexual 
531.12 	images, sexual extortion, nonconsensual dissemination of a deepfake depicting intimate 
531.13 	parts or sexual acts, sex trafficking, or stalking.
531.14 	(n) "Stalking" has the meaning given in section 609.749.
531.15 		Subd. 2.Victims' rights. (a) The policy required under subdivision 1 shall, at a minimum, 
531.16 	require that students and employees be informed of the policy, and shall include provisions 
531.17 	for:
531.18 	(1) filing criminal charges with local law enforcement officials in sexual assault cases
531.19 	defined as sexual misconduct that may constitute criminal behavior;
531.20 	(2) the prompt assistance of campus authorities, at the request of the victim, in notifying 
531.21 	the appropriate law enforcement officials and disciplinary authorities of a sexual assault
531.22 	misconduct incident;
531.23 	(3) allowing sexual assault misconduct victims to decide whether to report a case to law 
531.24 	enforcement or not report altogether; participate in a campus investigation, disciplinary 
531.25 	proceeding, or nondisciplinary informal resolution; or not participate altogether;
531.26 	(4) requiring campus authorities to treat sexual assault misconduct victims with dignity;
531.27 	(5) requiring campus authorities to offer sexual assault misconduct victims fair and 
531.28 	respectful health care, counseling services, or referrals to such services;
531.29 	(6) preventing campus authorities from suggesting to a victim of sexual assault
531.30 	misconduct that the victim is at fault for the crimes or violations that occurred;
532.1 	(7) preventing campus authorities from suggesting to a victim of sexual assault
532.2 	misconduct that the victim should have acted in a different manner to avoid such a crime;
532.3 	(8) subject to subdivision subdivisions 2a and 10, protecting the privacy of sexual assault
532.4 	misconduct victims by only disclosing data collected under this section to the victim, persons 
532.5 	whose work assignments reasonably require access, and, at a sexual assault misconduct
532.6 	victim's request, police conducting a criminal investigation;
532.7 	(9) an investigation and resolution of a sexual assault misconduct complaint by campus 
532.8 	disciplinary authorities;
532.9 	(10) a sexual assault misconduct victim's participation in and the presence of the victim's 
532.10 	attorney or other support person who is not a fact witness to the sexual assault advisor at 
532.11 	any meeting with campus officials concerning the victim's sexual assault misconduct
532.12 	complaint or campus disciplinary proceeding concerning a sexual assault misconduct
532.13 	complaint;
532.14 	(11) ensuring that a sexual assault misconduct victim may decide when to repeat a 
532.15 	description of the incident of sexual assault misconduct;
532.16 	(12) notice to a sexual assault misconduct victim of the availability of a campus or local 
532.17 	program providing sexual assault victim advocacy services and information on free legal 
532.18 	resources and services;
532.19 	(13) notice to a sexual assault misconduct victim of the outcome of any campus 
532.20 	disciplinary proceeding concerning a sexual assault misconduct complaint, consistent with 
532.21 	laws relating to data practices;
532.22 	(14) the complete and prompt assistance of campus authorities, at the direction of law 
532.23 	enforcement authorities, in obtaining, securing, and maintaining evidence in connection 
532.24 	with a sexual assault misconduct incident;
532.25 	(15) the assistance of campus authorities, at the request of the sexual misconduct victim,
532.26 	in preserving for a sexual assault complainant or victim materials relevant to a campus 
532.27 	disciplinary proceeding;
532.28 	(16) during and after the process of investigating a complaint and conducting a campus 
532.29 	disciplinary procedure, the assistance of campus personnel, in cooperation with the 
532.30 	appropriate law enforcement authorities, at a sexual assault misconduct victim's request, in 
532.31 	shielding the victim from unwanted contact with the alleged assailant, including transfer of 
532.32 	the victim to alternative classes or to alternative college-owned housing, if alternative classes 
532.33 	or housing are available and feasible;
533.1 	(17) forbidding retaliation, and establishing a process for investigating complaints of 
533.2 	retaliation, against sexual assault misconduct victims by campus authorities, the accused, 
533.3 	organizations affiliated with the accused, other students, and other employees;
533.4 	(18) at the request of the victim, providing students who reported sexual assaults
533.5 	misconduct to the institution and subsequently choose to transfer to another postsecondary 
533.6 	institution with information about resources for victims of sexual assault misconduct at the 
533.7 	institution to which the victim is transferring; and
533.8 	(19) consistent with laws governing access to student records, providing a student who 
533.9 	reported an incident of sexual assault misconduct with access to the student's description 
533.10 	of the incident as it was reported to the institution, including if that student transfers to 
533.11 	another postsecondary institution.
533.12 	(b) None of the rights given to a student by the policy required by subdivision 1 may be 
533.13 	made contingent upon the victim entering into a nondisclosure agreement or other contract 
533.14 	restricting the victim's ability to discuss information in connection with a sexual misconduct 
533.15 	complaint, investigation, or hearing.
533.16 	(c) A nondisclosure agreement or other contract restricting the victim's ability to discuss 
533.17 	information in connection with a sexual misconduct complaint, investigation, or hearing 
533.18 	may not be used as a condition of financial aid or remedial action.
533.19 		Subd. 2a.Campus investigation and disciplinary hearing procedures. (a) A 
533.20 	postsecondary institution must provide a reporting party an opportunity for an impartial, 
533.21 	timely, and thorough investigation of a report of sexual misconduct against a student. If an 
533.22 	investigation reveals that sexual misconduct has occurred, the institution must take prompt 
533.23 	and effective steps reasonably calculated to end the sexual misconduct, prevent its recurrence, 
533.24 	and, as appropriate, remedy its effects.
533.25 	(b) Throughout any investigation or disciplinary proceeding, a postsecondary institution 
533.26 	must treat the reporting parties, responding parties, witnesses, and other participants in the 
533.27 	proceeding with dignity and respect.
533.28 	(c) If a postsecondary institution conducts a hearing, an advisor may provide opening 
533.29 	and closing remarks on behalf of a party or assist with formulating questions to the other 
533.30 	party or witnesses about related evidence or credibility.
533.31 		Subd. 3.Uniform amnesty. The sexual harassment and violence misconduct policy 
533.32 	required by subdivision 1 must include a provision that a witness or victim of an incident 
533.33 	of sexual assault misconduct who reports the incident in good faith shall not be sanctioned 
534.1 	by the institution for admitting in the report to a violation of the institution's student conduct 
534.2 	policy on the personal use of drugs or alcohol.
534.3 		Subd. 4.Coordination with local law enforcement. (a) A postsecondary institution 
534.4 	must enter into a memorandum of understanding with the primary local law enforcement 
534.5 	agencies that serve its campus. The memorandum must be entered into no later than January 
534.6 	1, 2017, and updated every two years thereafter. This memorandum shall clearly delineate 
534.7 	responsibilities and require information sharing, in accordance with applicable state and 
534.8 	federal privacy laws, about certain crimes including, but not limited to, sexual assault. This 
534.9 	memorandum of understanding shall provide:
534.10 	(1) delineation and sharing protocols of investigative responsibilities;
534.11 	(2) protocols for investigations, including standards for notification and communication 
534.12 	and measures to promote evidence preservation; and
534.13 	(3) a method of sharing information about specific crimes, when directed by the victim, 
534.14 	and a method of sharing crime details anonymously in order to better protect overall campus 
534.15 	safety.
534.16 	(b) Prior to the start of each academic year, a postsecondary institution shall distribute 
534.17 	an electronic copy of the memorandum of understanding to all employees on the campus 
534.18 	that are subject to the memorandum.
534.19 	(c) An institution is exempt from the requirement that it develop a memorandum of 
534.20 	understanding under this section if the institution and local or county law enforcement 
534.21 	agencies establish a sexual assault misconduct protocol team to facilitate effective cooperation 
534.22 	and collaboration between the institution and law enforcement.
534.23 		Subd. 5.Online reporting system. (a) A postsecondary institution must provide an 
534.24 	online reporting system to receive complaints of sexual harassment and sexual violence
534.25 	misconduct from students and employees. The system must permit anonymous reports, 
534.26 	provided that the institution is not obligated to investigate an anonymous report unless a 
534.27 	formal report is submitted through the process established in the institution's sexual 
534.28 	harassment and sexual violence misconduct policy.
534.29 	(b) A postsecondary institution must provide students making reports under this 
534.30 	subdivision with information about who will receive and have access to the reports filed, 
534.31 	how the information gathered through the system will be used, and contact information for 
534.32 	on-campus and off-campus organizations serving victims of sexual violence misconduct.
535.1 	(c) Data collected under this subdivision is classified as private data on individuals as 
535.2 	defined by section 13.02, subdivision 12. Postsecondary institutions not otherwise subject 
535.3 	to chapter 13 must limit access to the data to only the data subject and persons whose work 
535.4 	assignments reasonably require access.
535.5 		Subd. 6.Data collection and reporting. (a) Postsecondary institutions must annually 
535.6 	report statistics on sexual assault misconduct. This report must be prepared in addition to 
535.7 	any federally required reporting on campus security, including reports required by the Jeanne 
535.8 	Clery Disclosure of Campus Security Policy and Campus Crime Statistics Act, United States 
535.9 	Code, title 20, section 1092(f). The report must include, but not be limited to, the number 
535.10 	of incidents of sexual assault misconduct of each offense listed under the definition in 
535.11 	subdivision 1a, reported to the institution in the previous calendar year, as follows:
535.12 	(1) the number that were investigated by the institution;
535.13 	(2) the number that were referred for a disciplinary proceeding at the institution;
535.14 	(3) the number the victim chose to report to local or state law enforcement;
535.15 	(4) the number for which a campus disciplinary proceeding is pending, but has not 
535.16 	reached a final resolution;
535.17 	(5) the number in which the alleged perpetrator was found responsible by the disciplinary 
535.18 	proceeding at the institution;
535.19 	(6) the number that resulted in any action by the institution greater than a warning issued 
535.20 	to the accused;
535.21 	(7) the number that resulted in a disciplinary proceeding at the institution that closed 
535.22 	without resolution;
535.23 	(8) the number that resulted in a disciplinary proceeding at the institution that closed 
535.24 	without resolution because the accused withdrew from the institution;
535.25 	(9) the number that resulted in a disciplinary proceeding at the institution that closed 
535.26 	without resolution because the victim chose not to participate in the procedure; and
535.27 	(10) the number of reports made through the online reporting system established in 
535.28 	subdivision 5, excluding reports submitted anonymously.
535.29 	(b) If an institution previously submitted a report indicating that one or more disciplinary 
535.30 	proceedings was pending, but had not reached a final resolution, and one or more of those 
535.31 	disciplinary proceedings reached a final resolution within the previous calendar year, that 
536.1 	institution must submit updated totals from the previous year that reflect the outcome of 
536.2 	the pending case or cases.
536.3 	(c) The reports required by this subdivision must be submitted to the Office of Higher 
536.4 	Education by October 1 of each year. Each report must contain the data required under 
536.5 	paragraphs (a) and (b) from the previous calendar year.
536.6 	(d) The commissioner of the Office of Higher Education shall calculate statewide numbers 
536.7 	for each data item reported by an institution under this subdivision. The statewide numbers 
536.8 	must include data from postsecondary institutions that the commissioner could not publish 
536.9 	due to federal laws governing access to student records.
536.10 	(e) The Office of Higher Education shall publish on its website:
536.11 	(1) the statewide data calculated under paragraph (d); and
536.12 	(2) the data items required under paragraphs (a) and (b) for each postsecondary institution 
536.13 	in the state.
536.14 	Each postsecondary institution shall publish on the institution's website the data items 
536.15 	required under paragraphs (a) and (b) for that institution.
536.16 	(f) Reports and data required under this subdivision must be prepared and published as 
536.17 	summary data, as defined in section 13.02, subdivision 19, and must be consistent with 
536.18 	applicable law governing access to educational data. If an institution or the Office of Higher 
536.19 	Education does not publish data because of applicable law, the publication must explain 
536.20 	why data are not included.
536.21 		Subd. 7.Access to data; audit trail. (a) Data on incidents of sexual assault misconduct
536.22 	shared with campus security officers or campus administrators responsible for investigating 
536.23 	or adjudicating complaints of sexual assault misconduct are classified as private data on 
536.24 	individuals as defined by section 13.02, subdivision 12, for the purposes of postsecondary 
536.25 	institutions subject to the requirements of chapter 13. Postsecondary institutions not otherwise 
536.26 	subject to chapter 13 must limit access to the data to only the data subject and persons whose 
536.27 	work assignments reasonably require access.
536.28 	(b) Only individuals with explicit authorization from an institution may enter, update, 
536.29 	or access electronic data related to an incident of sexual assault misconduct collected, 
536.30 	created, or maintained under this section. The ability of authorized individuals to enter, 
536.31 	update, or access these data must be limited through the use of role-based access that 
536.32 	corresponds to the official duties or training level of the individual and the institutional 
536.33 	authorization that grants access for that purpose. All actions in which the data related to an 
537.1 	incident of sexual assault misconduct are entered, updated, accessed, shared, or disseminated 
537.2 	outside of the institution must be recorded in a data audit trail. An institution shall 
537.3 	immediately and permanently revoke the authorization of any individual determined to have 
537.4 	willfully entered, updated, accessed, shared, or disseminated data in violation of this 
537.5 	subdivision or any provision of chapter 13. If an individual is determined to have willfully 
537.6 	gained access to data without explicit authorization, the matter shall be forwarded to a 
537.7 	county attorney for prosecution.
537.8 		Subd. 8.Comprehensive training. (a) A postsecondary institution must provide campus 
537.9 	security officers and campus administrators responsible for investigating or adjudicating 
537.10 	complaints of sexual assault misconduct with comprehensive training on preventing and 
537.11 	responding to sexual assault misconduct in collaboration with the Bureau of Criminal 
537.12 	Apprehension or another law enforcement agency with expertise in criminal sexual conduct. 
537.13 	The training for campus security officers shall include a presentation on the dynamics of 
537.14 	sexual assault, neurobiological responses to trauma, and best practices for preventing, 
537.15 	responding to, and investigating sexual assault misconduct. The training for campus 
537.16 	administrators responsible for investigating or adjudicating complaints on sexual assault
537.17 	misconduct shall include presentations on preventing sexual assault misconduct, responding 
537.18 	to incidents of sexual assault misconduct, the dynamics of sexual assault, neurobiological 
537.19 	responses to trauma, and compliance with state and federal laws on sexual assault misconduct.
537.20 	(b) The following categories of students who attend, or will attend, one or more courses 
537.21 	on campus or will participate in on-campus activities must be provided sexual assault
537.22 	misconduct training:
537.23 	(1) students pursuing a degree or certificate;
537.24 	(2) students who are taking courses through the Postsecondary Enrollment Options Act; 
537.25 	and
537.26 	(3) any other categories of students determined by the institution.
537.27 	Students must complete such training no later than ten business days after the start of a 
537.28 	student's first semester of classes. Once a student completes the training, institutions must 
537.29 	document the student's completion of the training and provide proof of training completion 
537.30 	to a student at the student's request. Students enrolled at more than one institution within 
537.31 	the same system at the same time are only required to complete the training once.
537.32 	The training shall include information about topics including but not limited to sexual 
537.33 	assault misconduct as defined in subdivision 1a; consent as defined in section 609.341, 
537.34 	subdivision 4; preventing and reducing the prevalence of sexual assault misconduct; 
538.1 	procedures for reporting campus sexual assault misconduct; and campus resources on sexual 
538.2 	assault misconduct, including organizations that support victims of sexual assault misconduct.
538.3 	(c) A postsecondary institution shall annually train individuals responsible for responding 
538.4 	to reports of sexual assault misconduct. This training shall include information about best 
538.5 	practices for interacting with victims of sexual assault misconduct, including how to reduce 
538.6 	the emotional distress resulting from the reporting, investigatory, and disciplinary process.
538.7 	(d) To the extent possible, trainings must be culturally responsive and address the unique 
538.8 	experiences and challenges faced by students based on race, ethnicity, color, national origin, 
538.9 	disability, socioeconomic status, religion, sex, gender identity, sexual orientation, and 
538.10 	pregnancy or parenting status.
538.11 		Subd. 9.Student health services. (a) An institution's student health service providers 
538.12 	must screen students for incidents of sexual violence and sexual harassment misconduct. 
538.13 	Student health service providers shall offer students information on resources available to 
538.14 	victims and survivors of sexual violence and sexual harassment misconduct including 
538.15 	counseling, mental health services, and procedures for reporting incidents to the institution.
538.16 	(b) Each institution offering student health or counseling services must designate an 
538.17 	existing staff member or existing staff members as confidential resources for victims of 
538.18 	sexual violence or sexual harassment misconduct. The confidential resource must be available 
538.19 	to meet with victims of sexual violence and sexual harassment misconduct. The confidential 
538.20 	resource must provide victims with information about locally available resources for victims 
538.21 	of sexual violence and sexual harassment misconduct including, but not limited to, mental 
538.22 	health services and legal assistance. The confidential resource must provide victims with 
538.23 	information about the process for reporting an incident of sexual violence and sexual 
538.24 	harassment misconduct to campus authorities or local law enforcement. The victim shall 
538.25 	decide whether to report an incident of sexual violence and sexual harassment misconduct
538.26 	to campus authorities or local law enforcement. Confidential resources must be trained in 
538.27 	all aspects of responding to incidents of sexual violence and sexual harassment misconduct
538.28 	including, but not limited to, best practices for interacting with victims of trauma, preserving 
538.29 	evidence, campus disciplinary and local legal processes, and locally available resources for 
538.30 	victims. Data shared with a confidential resource is classified as sexual assault 
538.31 	communication data as defined by section 13.822, subdivision 1.
538.32 		Subd. 10.Applicability of other laws. This section does not exempt mandatory reporters 
538.33 	from the requirements of section 626.557 or chapter 260E governing the reporting of 
538.34 	maltreatment of minors or vulnerable adults. Nothing in this section limits the authority of 
539.1 	an institution to comply with other applicable state or federal laws related to investigations 
539.2 	or reports of sexual harassment, sexual violence, or sexual assault misconduct.

539.3 	EFFECTIVE DATE. This section is effective August 1, 2025.

539.4 	Sec. 5. [135A.1581] NAVIGATORS FOR PARENTING STUDENTS.
539.5 		Subdivision 1.Applicability. (a) This section applies to the following postsecondary 
539.6 	institutions:
539.7 	(1) institutions governed by the Board of Trustees of the Minnesota State Colleges and 
539.8 	Universities; and
539.9 	(2) private postsecondary institutions that offer in-person courses on a campus located 
539.10 	in Minnesota and which are eligible institutions as defined in section 136A.103.
539.11 	(b) Institutions governed by the Board of Regents of the University of Minnesota are 
539.12 	requested to comply with this section.
539.13 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
539.14 	meanings given.
539.15 	(b) "Institutions of higher education" means an institution of higher education under 
539.16 	subdivision 1.
539.17 	(c) "Parenting student" means a student enrolled at an institution of higher education 
539.18 	who is the parent or legal guardian of or can claim as a dependent a child under the age of 
539.19 	18.
539.20 		Subd. 3.Navigators. An institution of higher education must designate at least one 
539.21 	employee of the institution to act as a college navigator for current or incoming students at 
539.22 	the institution who are parenting students. The navigator must provide to the students 
539.23 	information regarding support services and other resources available to the students at the 
539.24 	institution, including:
539.25 	(1) medical and behavioral health coverage and services;
539.26 	(2) public benefit programs, including programs related to food security, affordable 
539.27 	housing, and housing subsidies;
539.28 	(3) parenting and child care resources;
539.29 	(4) employment assistance;
539.30 	(5) transportation assistance; and
540.1 	(6) any other resources developed by the institution to assist the students, including 
540.2 	student academic success strategies.
540.3 		Subd. 4.Report. (a) By June 30, 2026, an institution of higher education must establish 
540.4 	a process for collecting the parenting status of each enrolled student. By November 30, 
540.5 	2026, the Office of Higher Education shall establish a process for collecting this information 
540.6 	from institutions.
540.7 	(b) Annually, beginning January 15, 2028, the Office of Higher Education must submit 
540.8 	a report to the chairs and ranking minority members of the legislative committees with 
540.9 	jurisdiction over higher education and children, youth, and families. The report must include 
540.10 	the following for parenting students:
540.11 	(1) summary demographic data;
540.12 	(2) enrollment patterns;
540.13 	(3) retention rates;
540.14 	(4) completion rates;
540.15 	(5) average cumulative debt at exit or graduation as possible; and
540.16 	(6) time to completion.
540.17 	Data must be disaggregated by institution, academic year, race and ethnicity, gender, and 
540.18 	other factors determined to be relevant by the commissioner.

540.19 	Sec. 6. [135A.1582] PROTECTIONS FOR PREGNANT AND PARENTING 
540.20 	STUDENTS.
540.21 		Subdivision 1.Definition. (a) For the purpose of this section, the following term has 
540.22 	the meaning given.
540.23 	(b) "Parenting student" means a student enrolled at a public college or university who 
540.24 	is the parent or legal guardian of or can claim as a dependent a child under the age of 18.
540.25 		Subd. 2.Rights and protections. (a) A Minnesota state college or university may not 
540.26 	require and the University of Minnesota is requested not to require a pregnant or parenting 
540.27 	student, solely because of the student's status as a pregnant or parenting student or due to 
540.28 	issues related to the student's pregnancy or parenting, to:
540.29 	(1) take a leave of absence or withdraw from the student's degree or certificate program;
540.30 	(2) limit the student's studies;
541.1 	(3) participate in an alternative program;
541.2 	(4) change the student's major, degree, or certificate program; or
541.3 	(5) refrain from joining or cease participating in any course, activity, or program at the 
541.4 	college or university.
541.5 	(b) A Minnesota state college or university shall provide and the University of Minnesota 
541.6 	is requested to provide reasonable modifications to a pregnant student, including 
541.7 	modifications that:
541.8 	(1) would be provided to a student with a temporary medical condition; or
541.9 	(2) are related to the health and safety of the student and the student's unborn child, such 
541.10 	as allowing the student to maintain a safe distance from substances, areas, and activities 
541.11 	known to be hazardous to pregnant women or unborn children.
541.12 	(c) A Minnesota state college or university must and the University of Minnesota is 
541.13 	requested to, for reasons related to a student's pregnancy, childbirth, or any resulting medical 
541.14 	status or condition:
541.15 	(1) excuse the student's absence;
541.16 	(2) allow the student to make up missed assignments or assessments;
541.17 	(3) allow the student additional time to complete assignments in the same manner as the 
541.18 	institution allows for a student with a temporary medical condition; and
541.19 	(4) provide the student with access to instructional materials and video recordings of 
541.20 	lectures for classes for which the student has an excused absence under this section to the 
541.21 	same extent that instructional materials and video recordings of lectures are made available 
541.22 	to any other student with an excused absence.
541.23 	(d) A Minnesota state college or university must and the University of Minnesota is 
541.24 	requested to allow a pregnant or parenting student to:
541.25 	(1) take a leave of absence; and
541.26 	(2) if in good academic standing at the time the student takes a leave of absence, return 
541.27 	to the student's degree or certificate program in good academic standing without being 
541.28 	required to reapply for admission.
541.29 	(e) If a public college or university provides early registration for courses or programs 
541.30 	at the institution for any group of students, the Minnesota state college or university must 
542.1 	provide and the University of Minnesota is requested to provide early registration for those 
542.2 	courses or programs for pregnant or parenting students in the same manner.
542.3 		Subd. 3.Policy on discrimination. Each Minnesota state college or university must 
542.4 	adopt and the University of Minnesota is requested to adopt a policy for students on 
542.5 	pregnancy and parenting discrimination. The policy must:
542.6 	(1) include the contact information of the Title IX coordinator who is the designated 
542.7 	point of contact for a student requesting each protection or modification under this section. 
542.8 	Contact information must include the Title IX coordinator's name, phone number, email, 
542.9 	and office;
542.10 	(2) be posted in an easily accessible, straightforward format on the college or university's 
542.11 	website; and
542.12 	(3) be made available annually to faculty, staff, and employees of the college or 
542.13 	university.
542.14 		Subd. 4.Administration. The commissioner of the Office of Higher Education must, 
542.15 	in consultation with the Board of Trustees of the Minnesota State Colleges and Universities 
542.16 	and the Board of Regents of the University of Minnesota, establish guidelines, as necessary, 
542.17 	to administer this section. The guidelines must establish minimum periods for which a 
542.18 	pregnant or parenting student must be given a leave of absence under subdivision 2, paragraph 
542.19 	(d). In establishing the minimum periods, the Office of Higher Education shall consider the 
542.20 	maximum amount of time a student may be absent without significantly interfering with 
542.21 	the student's ability to complete the student's degree or certificate program.

542.22 	Sec. 7. Minnesota Statutes 2023 Supplement, section 135A.161, is amended by adding a 
542.23 	subdivision to read:
542.24 		Subd. 5.Reporting. The director must evaluate the development and implementation 
542.25 	of the Minnesota inclusive higher education initiatives receiving a grant under section 
542.26 	135A.162. The director must submit an annual report by October 1 on the progress to expand 
542.27 	Minnesota inclusive higher education options for students with intellectual disabilities to 
542.28 	the commissioner and chairs and ranking minority members of the legislative committees 
542.29 	with jurisdiction over higher education policy and finance. The report must include statutory 
542.30 	and budget recommendations.

543.1 	Sec. 8. Minnesota Statutes 2023 Supplement, section 135A.162, subdivision 2, is amended 
543.2 	to read:
543.3 		Subd. 2.Eligible grantees. A Tribal college or public or nonprofit postsecondary 
543.4 	two-year or four-year institution is eligible to apply for a grant under this section if the 
543.5 	institution:
543.6 	(1) is accredited by the Higher Learning Commission; and
543.7 	(2) meets the eligibility requirements under section 136A.103.

543.8 	Sec. 9. [135A.163] STUDENTS WITH DISABILITIES; ACCOMMODATIONS; 
543.9 	GENERAL REQUIREMENTS.
543.10 		Subdivision 1.Short title. This act may be cited as the "Minnesota Respond, Innovate, 
543.11 	Succeed, and Empower (RISE) Act."
543.12 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
543.13 	meanings given.
543.14 	(b) "Institution of higher education" means a public institution of higher education, 
543.15 	Tribal college, and private institution of higher education that receives federal funding. The 
543.16 	Board of Regents of the University of Minnesota is requested to comply with this section.
543.17 	(c) "Plain language" means communication the audience can understand the first time 
543.18 	the audience reads or hears it.
543.19 	(d) "Student with a disability" means an admitted or enrolled student who meets the 
543.20 	definition of an individual with a disability under the Americans with Disabilities Act and 
543.21 	includes a student with an intellectual disability as defined in Code of Federal Regulations, 
543.22 	title 34, section 668.231, who is admitted or enrolled in a comprehensive transition and 
543.23 	postsecondary program.
543.24 		Subd. 3.Students with disabilities policy; dissemination of policy. (a) Each institution 
543.25 	of higher education shall adopt a policy making self-disclosure by a student with a disability 
543.26 	sufficient to start the interactive process for reasonable accommodations under subdivision 
543.27 	4.
543.28 	(b) The policy adopted under this section must be transparent and explicit. The policy 
543.29 	must include information describing the process by which the institution of higher education 
543.30 	determines eligibility for accommodations for an individual with a disability and information 
543.31 	about the disability resource center and other areas within the institution that provide student 
543.32 	accommodations, such as housing and residence life. Each institution of higher education 
544.1 	shall disseminate the information to applicants, students, parents, and faculty in plain 
544.2 	language and in accessible formats. The information must be available during the student 
544.3 	application process, during student orientation, in academic catalogs, and on the institution's 
544.4 	public website.
544.5 		Subd. 4.Establishment of reasonable accommodation; documentation. (a) An 
544.6 	institution of higher education shall engage in an interactive process to document the student's 
544.7 	accommodation needs to establish a reasonable accommodation. An institution may request 
544.8 	documentation as part of the interactive process to establish accommodations for the student 
544.9 	with a disability.
544.10 	(b) The following documentation submitted by an admitted or enrolled student is 
544.11 	sufficient documentation for the interactive process to establish reasonable accommodations 
544.12 	for a student with a disability:
544.13 	(1) documentation that the individual has had an individualized education program (IEP). 
544.14 	The institution of higher education may request additional documentation from an individual 
544.15 	who has had an IEP if the IEP was not in effect immediately before the date when the 
544.16 	individual exited high school;
544.17 	(2) documentation that the individual has received services or accommodations under 
544.18 	a section 504 plan. The institution of higher education may request additional documentation 
544.19 	from an individual who has received services or accommodations provided to the individual 
544.20 	under a section 504 plan if the section 504 plan was not in effect immediately before the 
544.21 	date when the individual exited high school;
544.22 	(3) documentation of a plan or record of service for the individual from a private school, 
544.23 	a local educational agency, a state educational agency, or an institution of higher education 
544.24 	provided under a section 504 plan or in accordance with the Americans with Disabilities 
544.25 	Act of 1990;
544.26 	(4) a record or evaluation from an appropriately qualified health or other service 
544.27 	professional who is knowledgeable about the individual's condition, finding that the 
544.28 	individual has a disability;
544.29 	(5) a plan or record of a disability from another institution of higher education;
544.30 	(6) documentation of a disability due to military service; or
544.31 	(7) additional information from an appropriately qualified health or other service 
544.32 	professional who is knowledgeable about the student's condition and can clarify the need 
544.33 	for a new accommodation not included in subdivision 4, paragraph (b), clauses (1) to (6).
545.1 	(c) An institution of higher education may establish less burdensome criteria to determine 
545.2 	reasonable accommodations for an enrolled or admitted student with a disability.
545.3 	(d) An institution of higher education shall include a representative list of potential 
545.4 	reasonable accommodations and disability resources for individuals with a disability that 
545.5 	is accessible to applicants, students, parents, and faculty in plain language and in accessible 
545.6 	formats. The information must be provided during the student application process, during 
545.7 	student orientation, in academic catalogs, and on the institution's public website. The 
545.8 	reasonable accommodations and disability resources available to students are individualized 
545.9 	and not limited to the list.
545.10 		Subd. 5.Higher education requirements for students with disabilities. Institutions 
545.11 	of higher education shall:
545.12 	(1) before the beginning of each academic term, offer an opportunity for admitted students 
545.13 	to self-identify as having a disability for which they may request an accommodation. The 
545.14 	person or office responsible for arranging accommodations at the institution must initiate 
545.15 	contact with any student who has self-identified under this clause. This does not preclude 
545.16 	a student from requesting an accommodation for a disability at any other time;
545.17 	(2) not require a student to be reevaluated for or submit documentation to prove the 
545.18 	presence of a permanent disability if the student previously provided proof of their disability 
545.19 	status and is not requesting any new accommodations;
545.20 	(3) provide the student's accommodation letter to the student's instructors, if the student 
545.21 	gives affirmative permission to share the information, and, if requested by the student, 
545.22 	facilitate communication between the student and the student's instructors;
545.23 	(4) if a course instructor cannot provide an accommodation because it would 
545.24 	fundamentally alter the nature of that course, require an instructor to provide a notification 
545.25 	detailing why an accommodation cannot be provided to the student and submit that 
545.26 	information to the student and the person or office responsible for arranging accommodations; 
545.27 	and
545.28 	(5) provide a student with a disability who is denied accommodations the option to 
545.29 	include the person or office responsible for arranging accommodations in the institution's 
545.30 	grievance or appeal process, to resolve equitable access barriers and prevent academic or 
545.31 	financial penalty due to no fault of the student.

545.32 	EFFECTIVE DATE. This section is effective January 1, 2025.

546.1 	Sec. 10. [135A.195] REQUIREMENTS RELATED TO ONLINE PROGRAM 
546.2 	MANAGEMENT COMPANIES.
546.3 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
546.4 	the meanings given.
546.5 	(b) "Contract" means an agreement entered into by an institution of higher education 
546.6 	with an online program management company. Contract includes any amendment or 
546.7 	addendum to the agreement.
546.8 	(c) "Institution of higher education" means an institution governed by either the Board 
546.9 	of Trustees of the Minnesota State Colleges and Universities or the Board of Regents of the 
546.10 	University of Minnesota. The Board of Regents of the University of Minnesota is requested 
546.11 	to comply with this section.
546.12 	(d) "Managed program" means an online course or program that is fully delivered online 
546.13 	in a virtual space.
546.14 	(e) "Online program management company" means a private, for-profit, third-party 
546.15 	entity that enters into a contract with an institution of higher education to provide bundled 
546.16 	products and services to develop, deliver, or provide managed programs, when the services 
546.17 	provided include recruitment and marketing.
546.18 	(f) "Tuition sharing" means compensation or payment to an online program management 
546.19 	company based on a percentage of revenue or fees collected from managed programs.
546.20 		Subd. 2.Contract stipulations. A contract must not contain any provision that:
546.21 	(1) includes or allows for tuition sharing;
546.22 	(2) grants the online program management company ownership rights to any or all 
546.23 	intellectual property rights, patentable discoveries, or inventions of faculty members of an 
546.24 	institution of higher education; or
546.25 	(3) grants the online program management company decision making authority over:
546.26 	(i) curriculum development, design, or maintenance;
546.27 	(ii) student assessment and grading;
546.28 	(iii) course assessment;
546.29 	(iv) admissions requirements;
546.30 	(v) appointment of faculty;
546.31 	(vi) faculty assessment;
547.1 	(vii) decision to award course credit or credential; or
547.2 	(viii) institutional governance.
547.3 		Subd. 3.Mandatory contract review and approval. Prior to being executed, a contract 
547.4 	must be reviewed and approved by the institution of higher education's governing board. 
547.5 	The Board of Regents of the University of Minnesota is requested to comply with this 
547.6 	subdivision. The review must include an analysis of the contract's compliance with 
547.7 	subdivision 2 prior to approval. A governing board must not approve a contract unless the 
547.8 	contract complies with subdivision 2.
547.9 		Subd. 4.Reporting requirements. An institution of higher education that contracts 
547.10 	with an online program management company shall annually submit to the chairs and 
547.11 	ranking minority members of the committees in the senate and house of representatives 
547.12 	with jurisdiction over higher education finance an assessment and analysis that provides 
547.13 	for a rigorous review and monitoring of online program management. The Board of Regents 
547.14 	of the University of Minnesota is requested to comply with this subdivision. The report 
547.15 	must, at a minimum, include:
547.16 	(1) a comparison of the actual enrollment and revenue and the enrollment and revenue 
547.17 	projections outlined in the financial pro forma;
547.18 	(2) enrollment data reporting in 2026 and each year thereafter that includes measures 
547.19 	of student persistence and completion;
547.20 	(3) evidence of good standing and engagement with the Higher Learning Commission 
547.21 	and any applicable specialized accreditors and licensing bodies, and evidence of any 
547.22 	approvals that may be required to offer courses and programs;
547.23 	(4) an assessment of the degree to which the programs offered compete with similar 
547.24 	programs;
547.25 	(5) a description and evidence of how institutions gather student feedback and student 
547.26 	complaints related to online program management courses and program offerings, and the 
547.27 	process for addressing any concerns and complaints; and
547.28 	(6) the most recent compliance analysis under subdivision 3.
547.29 		Subd. 5.Marketing requirements. (a) An institution of higher education that retains 
547.30 	an online program management company to provide marketing services for its academic 
547.31 	degree programs shall require that:
548.1 	(1) the online program management company must clearly disclose the third-party 
548.2 	relationship between the online program management company and the institution each 
548.3 	time it engages in recruitment or marketing activities for an academic program of the 
548.4 	institution; and
548.5 	(2) all recruitment and marketing communications from the online program management 
548.6 	company receive prior approval from the institution.
548.7 	(b) An institution of higher education that contracts with an online program management 
548.8 	company shall make publicly available on its website a list of the online programs that are 
548.9 	supported by the online program management company.
548.10 		Subd. 6.Exemption. Notwithstanding subdivision 1, paragraph (b), this section does 
548.11 	not apply to an addendum or amendment to a contract entered into by an institution of higher 
548.12 	education on or before July 1, 2023, that increases or decreases the number of managed 
548.13 	programs. This subdivision expires July 1, 2028.

548.14 	EFFECTIVE DATE. This section is effective July 1, 2024, and applies to contracts 
548.15 	entered into on or after that date, subject to the exemption in subdivision 6.

548.16 	Sec. 11. [136A.053] CONSOLIDATED STUDENT AID REPORTING.
548.17 	(a) The commissioner of the Office of Higher Education shall report annually beginning 
548.18 	February 15, 2026, to the chairs and ranking minority members of the legislative committees 
548.19 	with jurisdiction over higher education, on the details of programs administered under 
548.20 	sections 136A.091 to 136A.1276, 136A.1465, and 136A.231 to 136A.246, including the:
548.21 	(1) total funds appropriated and expended;
548.22 	(2) total number of students applying for funds;
548.23 	(3) total number of students receiving funds;
548.24 	(4) average and total award amounts;
548.25 	(5) summary demographic data on award recipients;
548.26 	(6) retention rates of award recipients;
548.27 	(7) completion rates of award recipients;
548.28 	(8) average cumulative debt at exit or graduation; and
548.29 	(9) average time to completion.
549.1 	(b) Data must be disaggregated by program, institution, aid year, race and ethnicity, 
549.2 	gender, income, family type, dependency status, and any other factors determined to be 
549.3 	relevant by the commissioner. The commissioner must report any additional data and 
549.4 	outcomes relevant to the evaluation of programs administered under sections 136A.091 to 
549.5 	136A.1276, 136A.1465, and 136A.231 to 136A.246 as evidenced by activities funded under 
549.6 	each program.

549.7 	Sec. 12. Minnesota Statutes 2022, section 136A.091, subdivision 3, is amended to read:
549.8 		Subd. 3.Financial need. Need for financial assistance is based on student eligibility for 
549.9 	free or reduced-price school meals under the national school lunch program. Student 
549.10 	eligibility shall be verified by sponsors of approved academic programs. The office shall 
549.11 	award stipends for students within the limits of available appropriations for this section. If 
549.12 	the amount appropriated is insufficient, the office shall allocate the available appropriation 
549.13 	in the manner it determines. A stipend must not exceed $1,000 per student.

549.14 	Sec. 13. [136A.097] ORDER OF AID CALCULATIONS.
549.15 	The commissioner must calculate aid for programs in the order of their original enactment 
549.16 	from oldest to most recent. The commissioner may determine the order of calculating state 
549.17 	financial aid if:
549.18 	(1) a student is eligible for multiple state financial aid programs; and
549.19 	(2) two or more of those programs calculate funding after accounting for other state aid.
549.20 	If the commissioner determines that a greater amount of financial aid would be available 
549.21 	to students by calculating aid in a particular order, the commissioner may calculate aid in 
549.22 	that order.

549.23 	Sec. 14. Minnesota Statutes 2022, section 136A.1241, subdivision 3, is amended to read:
549.24 		Subd. 3.Eligibility. (a) An individual who is eligible for the Education and Training 
549.25 	Voucher Program is eligible for a foster grant.
549.26 	(b) If the individual is not eligible for the Education and Training Voucher Program, in 
549.27 	order to receive a foster grant, an individual must:
549.28 	(1) meet the definition of a resident student under section 136A.101, subdivision 8;
549.29 	(2) be at least 13 years of age but fewer than 27 years of age;
550.1 	(3) after the individual's 13th birthday, be in or have been in foster care in Minnesota 
550.2 	before, on, or after June 27, 2021, including any of the following:
550.3 	(i) placement in foster care at any time while 13 years of age or older;
550.4 	(ii) adoption from foster care at any time after reaching 13 years of age; or
550.5 	(iii) placement from foster care with a permanent legal custodian at any time after 
550.6 	reaching 13 years of age;
550.7 	(4) have graduated from high school or completed the equivalent as approved by the 
550.8 	Department of Education;
550.9 	(5) have been accepted for admission to, or be currently attending, an eligible institution;
550.10 	(6) have submitted a FAFSA; and
550.11 	(7) be meeting satisfactory academic progress as defined under section 136A.101, 
550.12 	subdivision 10.;
550.13 	(8) not be in default, as defined by the office, of any federal or state student educational 
550.14 	loan;
550.15 	(9) not be more than 30 days in arrears in court-ordered child support that is collected 
550.16 	or enforced by the public authority responsible for child support enforcement or, if the 
550.17 	applicant is more than 30 days in arrears in court-ordered child support that is collected or 
550.18 	enforced by the public authority responsible for child support enforcement, be complying 
550.19 	with a written payment agreement under section 518A.69 or order for arrearages; and
550.20 	(10) not have been convicted of or pled nolo contendere or guilty to a crime involving 
550.21 	fraud in obtaining federal Title IV funds within the meaning of Code of Federal Regulations, 
550.22 	subtitle B, chapter VI, part 668, subpart C.

550.23 	Sec. 15. Minnesota Statutes 2023 Supplement, section 136A.1241, subdivision 5, is 
550.24 	amended to read:
550.25 		Subd. 5.Foster grant amount; payment; opt-out. (a) Each student shall be awarded 
550.26 	a foster grant based on the federal need analysis. Applicants are encouraged to apply for all 
550.27 	other sources of financial aid. The amount of the foster grant must be equal to the applicant's 
550.28 	recognized cost of attendance after accounting for:
550.29 	(1) the results of the federal need analysis;
550.30 	(2) the amount of a federal Pell Grant award for which the applicant is eligible;
550.31 	(3) the amount of the state grant;
551.1 	(4) the Federal Supplemental Educational Opportunity Grant;
551.2 	(5) the sum of all Tribal scholarships;
551.3 	(6) the amount of any other state and federal gift aid;
551.4 	(7) the Education and Training Voucher Program;
551.5 	(8) extended foster care benefits under section 260C.451;
551.6 	(9) the amount of any private grants or scholarships, excluding grants and scholarships 
551.7 	provided by the private institution of higher education in which the eligible student is 
551.8 	enrolled; and
551.9 	(10) for public institutions, the sum of all institutional grants, scholarships, tuition 
551.10 	waivers, and tuition remission amounts.
551.11 	(b) The foster grant shall be paid directly to the eligible institution where the student is 
551.12 	enrolled.
551.13 	(c) An eligible private institution may opt out of participating in the foster grant program 
551.14 	established under this section. To opt out, the institution shall provide notice to the office 
551.15 	by March 1 for the next academic year. An institution that opts out of participating, but 
551.16 	participated in the program a previous year, must hold harmless currently enrolled recipients 
551.17 	by continuing to provide the benefit under paragraph (d) as long as the student remains 
551.18 	eligible.
551.19 	(d) An eligible private institution that does not opt out under paragraph (c) and accepts 
551.20 	the student's application to attend the institution must provide institutional grants, 
551.21 	scholarships, tuition waivers, or tuition remission in an amount equal to the difference 
551.22 	between:
551.23 	(1) the institution's cost of attendance as calculated under subdivision 4, paragraph (b), 
551.24 	clause (1); and
551.25 	(2) the sum of the foster grant under this subdivision and the sum of the amounts in 
551.26 	paragraph (a), clauses (1) to (9).
551.27 	(e) An undergraduate student who is eligible may apply for and receive a foster grant 
551.28 	in any year of undergraduate study unless the student has obtained a baccalaureate degree 
551.29 	or received foster grant funds for a period of ten full-time semesters or the equivalent for a 
551.30 	four-year undergraduate degree. A foster grant student enrolled in a two-year degree, 
551.31 	certificate, or diploma program may apply for and receive a foster grant in any year of 
552.1 	undergraduate study unless the student has obtained a baccalaureate degree or received 
552.2 	foster grant funds for a period of six full-time semesters or the equivalent.
552.3 	(f) Foster grants may be awarded to an eligible student for four quarters, three semesters, 
552.4 	or the equivalent during the course of a single fiscal year. In calculating the award amount, 
552.5 	the office must use the same calculation it would for any other term.
552.6 	(g) The commissioner shall establish a priority application deadline.
552.7 	(h) If there is a projected shortfall in available resources, the commissioner must 
552.8 	proportionately reduce awards to keep spending within available resources.
552.9 	(i) Applicants applying after the priority deadline for whom the office has received a 
552.10 	completed application must be placed on a waiting list in order of application completion 
552.11 	date. Awards must be made on a first-come, first-served basis in the order complete 
552.12 	applications are received. Students who received the Fostering Independence Grant in the 
552.13 	previous year shall be given priority. If there are multiple applications with identical 
552.14 	completion dates, those applications must be further sorted by application receipt date. 
552.15 	Awards must be made to eligible students until the appropriation is expended.

552.16 	Sec. 16. Minnesota Statutes 2023 Supplement, section 136A.1465, subdivision 1, is 
552.17 	amended to read:
552.18 		Subdivision 1.Definitions. The following terms have the meanings given:
552.19 	(1) "eligible student" means a resident student under section 136A.101, subdivision 8, 
552.20 	who is enrolled in any public postsecondary educational institution or Tribal college and 
552.21 	who meets the eligibility requirements in subdivision 2;
552.22 	(2) "gift aid" means all includes:
552.23 	(i) all federal financial aid that is not a loan or pursuant to a work-study program;
552.24 	(ii) state financial aid, unless designated for other expenses, that is not a loan or pursuant 
552.25 	to a work-study program;
552.26 	(iii) institutional financial aid designated for the student's educational expenses, including 
552.27 	a grant, scholarship, tuition waiver, fellowship stipend, or other third-party payment, unless 
552.28 	designated for other expenses, that is not a loan or pursuant to a work-study program; and
552.29 	(iv) all private financial aid that is not a loan or pursuant to a work-study program.
553.1 	Financial aid from the state, public postsecondary educational institutions, and Tribal colleges 
553.2 	that is specifically designated for other expenses is not gift aid for purposes of the North 
553.3 	Star Promise scholarship.
553.4 	(3) "office" means the Office of Higher Education;
553.5 	(3) "other expenses" includes books, required supplies, child care, emergency assistance, 
553.6 	food, and housing;
553.7 	(4) "public postsecondary educational institution" means an institution operated by this 
553.8 	state, or the Board of Regents of the University of Minnesota, or a Tribal college;
553.9 	(5) "recognized cost of attendance" has the meaning given in United States Code, title 
553.10 	20, chapter 28, subchapter IV, part F, section 1087ll;
553.11 	(5) "scholarship" means funds to pay 100 percent of tuition and fees remaining after 
553.12 	deducting grants and other scholarships;
553.13 	(6) "Tribal college" means a college defined in section 136A.1796, subdivision 1, 
553.14 	paragraph (c); and
553.15 	(7) "tuition and fees" means the actual tuition and mandatory fees charged by an 
553.16 	institution.

553.17 	Sec. 17. Minnesota Statutes 2023 Supplement, section 136A.1465, subdivision 2, is 
553.18 	amended to read:
553.19 		Subd. 2.Conditions for eligibility. A scholarship may be awarded to an eligible student 
553.20 	who:
553.21 	(1) has completed the Free Application for Federal Student Aid (FAFSA) or the state 
553.22 	aid application;
553.23 	(2) has a family adjusted gross income below $80,000;
553.24 	(3) is a graduate of a secondary school or its equivalent, or is 17 years of age or over 
553.25 	and has met all requirements for admission as a student to an eligible college or university;
553.26 	(3) (4) has not earned a baccalaureate degree at the time the scholarship is awarded;
553.27 	(4) (5) is enrolled in at least one credit per fall, spring, or summer semester; and
553.28 	(6) is enrolled in a program or course of study that applies to a degree, diploma, or 
553.29 	certificate;
554.1 	(7) is not in default, as defined by the office, of any federal or state student educational 
554.2 	loan;
554.3 	(8) is not more than 30 days in arrears in court-ordered child support that is collected or 
554.4 	enforced by the public authority responsible for child support enforcement or, if the applicant 
554.5 	is more than 30 days in arrears in court-ordered child support that is collected or enforced 
554.6 	by the public authority responsible for child support enforcement, but is complying with a 
554.7 	written payment agreement under section 518A.69 or order for arrearages;
554.8 	(9) has not been convicted of or pled nolo contendere or guilty to a crime involving 
554.9 	fraud in obtaining federal Title IV funds within the meaning of Code of Federal Regulations, 
554.10 	subtitle B, chapter VI, part 668, subpart C; and
554.11 	(5) (10) is meeting satisfactory academic progress as defined in section 136A.101, 
554.12 	subdivision 10.

554.13 	Sec. 18. Minnesota Statutes 2023 Supplement, section 136A.1465, subdivision 3, is 
554.14 	amended to read:
554.15 		Subd. 3.Scholarship. (a) Beginning in the fall term of the 2024-2025 academic year, 
554.16 	scholarships shall be awarded to eligible students in an amount not to exceed 100 percent 
554.17 	of tuition and fees after grants and other scholarships are gift aid is deducted.
554.18 	(b) For the 2024-2025, 2025-2026, and 2026-2027 academic years, if funds remain after 
554.19 	scholarships are awarded under paragraph (a), supplemental grants shall be awarded to 
554.20 	eligible students in an amount equal to 100 percent of tuition and fees plus, subject to 
554.21 	available funds, up to 50 percent of the amount of a Pell grant the student would receive 
554.22 	based on household size, family adjusted gross income, and results of the federal needs 
554.23 	analysis after other gift aid is deducted, not to exceed the student's recognized cost of 
554.24 	attendance. The commissioner may adjust the supplemental grant amount based on the 
554.25 	availability of funds.

554.26 	Sec. 19. Minnesota Statutes 2023 Supplement, section 136A.1465, subdivision 4, is 
554.27 	amended to read:
554.28 		Subd. 4.Maintain current levels of institutional assistance. (a) Commencing with 
554.29 	the 2024-2025 academic year, a public postsecondary educational institution or Tribal 
554.30 	college shall not reduce the institutional gift aid offered or awarded to a student who is 
554.31 	eligible to receive funds under this program unless the student's gift aid exceeds the student's 
554.32 	annual recognized cost of attendance.
555.1 	(b) The public postsecondary educational institution or Tribal college may reduce the 
555.2 	institutional gift aid offer of a student who is eligible to receive funds under this program 
555.3 	by no more than the amount of the student's gift aid that is in excess of the student's annual 
555.4 	recognized cost of attendance.
555.5 	(c) The public postsecondary educational institution or Tribal college shall not consider 
555.6 	receipt or anticipated receipt of funds under this program when considering a student for 
555.7 	qualification for institutional gift aid.
555.8 	(d) To ensure financial aid is maximized, a public postsecondary educational institution
555.9 	or Tribal college is encouraged to implement efforts to avoid scholarship displacement 
555.10 	through consultation with the Office of Higher Education and students to avoid situations 
555.11 	where institutional gift aid can only be used for specific purposes.

555.12 	Sec. 20. Minnesota Statutes 2023 Supplement, section 136A.1465, subdivision 5, is 
555.13 	amended to read:
555.14 		Subd. 5.Duration of scholarship authorized; scholarship paid to institution. (a) 
555.15 	Each scholarship is for a period of one semester. A scholarship may be renewed provided 
555.16 	that the eligible student continues to meet the conditions of eligibility.
555.17 	(b) Scholarships may be provided to an eligible student for up to 60 credits for pursuing
555.18 	the completion of a certificate or an associate degree and up to 120 credits for the completion 
555.19 	of a bachelor's degree who has not previously received the scholarship for four full-time 
555.20 	semesters or the equivalent. Scholarships may be provided to an eligible student pursuing 
555.21 	the completion of a bachelor's degree who has not previously received the scholarship for 
555.22 	eight full-time semesters or the equivalent. The maximum credits for which a student is 
555.23 	eligible is a total of 120 credits eight full-time semesters or the equivalent. Courses taken 
555.24 	that qualify as developmental education or below college-level shall be excluded from the 
555.25 	limit.
555.26 	(c) A student is entitled to an additional semester or the equivalent of grant eligibility 
555.27 	if the student withdraws from enrollment:
555.28 	(1) for active military service because the student was ordered to active military service 
555.29 	as defined in section 190.05, subdivision 5b or 5c;
555.30 	(2) for a serious health condition, while under the care of a medical professional, that 
555.31 	substantially limits the student's ability to complete the term; or
555.32 	(3) while providing care that substantially limits the student's ability to complete the 
555.33 	term to the student's spouse, child, or parent who has a serious health condition.
556.1 	(c) The commissioner shall determine a time frame by which the eligible student must 
556.2 	complete the credential.
556.3 	(d) The scholarship must be paid directly to the eligible institution where the student is 
556.4 	enrolled.

556.5 	Sec. 21. Minnesota Statutes 2022, section 136A.1701, subdivision 4, is amended to read:
556.6 		Subd. 4.Terms and conditions of loans. (a) The office may loan money upon such 
556.7 	terms and conditions as the office may prescribe.
556.8 	(b) The minimum loan amount and a maximum loan amount to students must be 
556.9 	determined annually by the office. Loan limits are defined based on the type of program 
556.10 	enrollment, such as a certificate, an associate's degree, a bachelor's degree, or a graduate 
556.11 	program. The aggregate principal amount of all loans made subject to this paragraph to a 
556.12 	student as an undergraduate and graduate student must not exceed $140,000. The amount 
556.13 	of the loan must not exceed the cost of attendance as determined by the eligible institution 
556.14 	less all other financial aid, including PLUS loans or other similar parent loans borrowed on 
556.15 	the student's behalf. A student may borrow up to the maximum amount twice in the same 
556.16 	grade level.
556.17 	(c) The cumulative borrowing maximums must be determined annually by the office 
556.18 	and are defined based on program enrollment. In determining the cumulative borrowing 
556.19 	maximums, the office shall, among other considerations, take into consideration the maximum 
556.20 	SELF loan amount, student financing needs, funding capacity for the SELF program, 
556.21 	delinquency and default loss management, and current financial market conditions.

556.22 	Sec. 22. Minnesota Statutes 2022, section 136A.1701, subdivision 7, is amended to read:
556.23 		Subd. 7.Repayment of loans.  The office shall establish repayment procedures for loans 
556.24 	made under this section in accordance with the policies, rules, and conditions authorized 
556.25 	under section 136A.16, subdivision 2. The office will take into consideration the loan limits 
556.26 	and current financial market conditions when establishing repayment terms. The office shall 
556.27 	not require a minimum annual payment, though the office may require minimum monthly 
556.28 	payments.

556.29 	Sec. 23. Minnesota Statutes 2022, section 136A.29, subdivision 9, is amended to read:
556.30 		Subd. 9.Revenue bonds; limit. The authority is authorized and empowered to issue 
556.31 	revenue bonds whose aggregate principal amount at any time shall not exceed $1,300,000,000
556.32 	$2,000,000,000 and to issue notes, bond anticipation notes, and revenue refunding bonds 
557.1 	of the authority under the provisions of sections 136A.25 to 136A.42, to provide funds for 
557.2 	acquiring, constructing, reconstructing, enlarging, remodeling, renovating, improving, 
557.3 	furnishing, or equipping one or more projects or parts thereof.

557.4 	Sec. 24. Minnesota Statutes 2023 Supplement, section 136A.62, subdivision 3, is amended 
557.5 	to read:
557.6 		Subd. 3.School. "School" means:
557.7 	(1) a Tribal college that has a physical presence in Minnesota;
557.8 	(2) any partnership, company, firm, society, trust, association, corporation, or any 
557.9 	combination thereof, with a physical presence in Minnesota, which: (i) is, owns, or operates 
557.10 	a private, nonprofit postsecondary education institution; (ii) is, owns, or operates a private, 
557.11 	for-profit postsecondary education institution; or (iii) provides a postsecondary instructional 
557.12 	program or course leading to a degree whether or not for profit; or
557.13 	(3) any public or private postsecondary educational institution located in another state 
557.14 	or country which offers or makes available to a Minnesota resident any course, program or 
557.15 	educational activity which does not require the leaving of the state for its completion; or
557.16 	with a physical presence in Minnesota.
557.17 	(4) any individual, entity, or postsecondary institution located in another state that 
557.18 	contracts with any school located within the state of Minnesota for the purpose of providing 
557.19 	educational programs, training programs, or awarding postsecondary credits or continuing 
557.20 	education credits to Minnesota residents that may be applied to a degree program.

557.21 	Sec. 25. Minnesota Statutes 2022, section 136A.62, is amended by adding a subdivision 
557.22 	to read:
557.23 		Subd. 8.Postsecondary education. "Postsecondary education" means the range of 
557.24 	formal learning opportunities beyond high school, including those aimed at learning an 
557.25 	occupation or earning an academic credential.

557.26 	Sec. 26. Minnesota Statutes 2022, section 136A.62, is amended by adding a subdivision 
557.27 	to read:
557.28 		Subd. 9.Physical presence. "Physical presence" means a presence within the state of 
557.29 	Minnesota for the purpose of conducting activity related to any program at the degree level 
557.30 	or courses that may be applied to a degree program. Physical presence includes:
557.31 	(1) operating a location within the state;
558.1 	(2) offering instruction within or originating from Minnesota designed to impart 
558.2 	knowledge with response utilizing teachers, trainers, counselors or computer resources, 
558.3 	computer linking, or any form of electronic means; and
558.4 	(3) granting an educational credential from a location within the state or to a student 
558.5 	within the state.
558.6 	Physical presence does not include field trips, sanctioned sports recruiting activities, or 
558.7 	college fairs or other assemblies of schools in Minnesota. No school may enroll an individual, 
558.8 	allow an individual to sign any agreement obligating the person to the school, accept any 
558.9 	moneys from the individual, or follow up with an individual by means of an in-person 
558.10 	meeting in Minnesota at a college fair or assembly.

558.11 	Sec. 27. Minnesota Statutes 2022, section 136A.63, subdivision 1, is amended to read:
558.12 		Subdivision 1.Annual registration. All schools located within Minnesota and all schools 
558.13 	located outside Minnesota with a physical presence in Minnesota which offer degree 
558.14 	programs or courses within Minnesota shall register annually with the office.

558.15 	Sec. 28. Minnesota Statutes 2022, section 136A.646, is amended to read:
558.16 	136A.646 ADDITIONAL SECURITY.
558.17 	(a) New institutions that have been granted conditional approval for degrees or names 
558.18 	to allow them the opportunity to apply for and receive accreditation under section 136A.65, 
558.19 	subdivision 7, shall provide a surety bond in a sum equal to ten percent of the net revenue 
558.20 	from tuition and fees in the registered institution's prior fiscal year, but in no case shall the 
558.21 	bond be less than $10,000.
558.22 	(b) Any registered institution that is notified by the United States Department of Education 
558.23 	that it has fallen below minimum financial standards and that its continued participation in 
558.24 	Title IV will be conditioned upon its satisfying either the Zone Alternative,an alternative 
558.25 	standard set forth in Code of Federal Regulations, title 34, section 668.175, paragraph (f), 
558.26 	or a Letter of Credit Alternative, Code of Federal Regulations, title 34, section 668.175, 
558.27 	paragraph (c), shall provide a surety bond in a sum equal to the "letter of credit" required 
558.28 	by the United States Department of Education in the Letter of Credit Alternative, but in no 
558.29 	event shall such bond be less than $10,000 nor more than $250,000. If the letter of credit 
558.30 	required by the United States Department of Education is higher than ten percent of the 
558.31 	Title IV, Higher Education Act program funds received by the institution during its most 
558.32 	recently completed fiscal year, the office shall reduce the office's surety requirement to 
559.1 	represent ten percent of the Title IV, Higher Education Act program funds received by the 
559.2 	institution during its most recently completed fiscal year, subject to the minimum and 
559.3 	maximum in this paragraph.
559.4 	(c) In lieu of a bond, the applicant may deposit with the commissioner of management 
559.5 	and budget:
559.6 	(1) a sum equal to the amount of the required surety bond in cash;
559.7 	(2) securities, as may be legally purchased by savings banks or for trust funds, in an 
559.8 	aggregate market value equal to the amount of the required surety bond; or
559.9 	(3) an irrevocable letter of credit issued by a financial institution to the amount of the 
559.10 	required surety bond.
559.11 	(d) The surety of any bond may cancel it upon giving 60 days' notice in writing to the 
559.12 	office and shall be relieved of liability for any breach of condition occurring after the 
559.13 	effective date of cancellation.
559.14 	(e) In the event of a school closure, the additional security must first be used to destroy 
559.15 	any private educational data under section 13.32 left at a physical campus in Minnesota 
559.16 	after all other governmental agencies have recovered or retrieved records under their record 
559.17 	retention policies. Any remaining funds must then be used to reimburse tuition and fee costs 
559.18 	to students that were enrolled at the time of the closure or had withdrawn in the previous 
559.19 	120 180 calendar days but did not graduate. Priority for refunds will be given to students 
559.20 	in the following order:
559.21 	(1) cash payments made by the student or on behalf of a student;
559.22 	(2) private student loans; and
559.23 	(3) Veteran Administration education benefits that are not restored by the Veteran 
559.24 	Administration. If there are additional security funds remaining, the additional security 
559.25 	funds may be used to cover any administrative costs incurred by the office related to the 
559.26 	closure of the school.

559.27 	Sec. 29. Minnesota Statutes 2022, section 136A.65, subdivision 4, is amended to read:
559.28 		Subd. 4.Criteria for approval. (a) A school applying to be registered and to have its 
559.29 	degree or degrees and name approved must substantially meet the following criteria:
559.30 	(1) the school has an organizational framework with administrative and teaching personnel 
559.31 	to provide the educational programs offered;
560.1 	(2) the school has financial resources sufficient to meet the school's financial obligations, 
560.2 	including refunding tuition and other charges consistent with its stated policy if the institution 
560.3 	is dissolved, or if claims for refunds are made, to provide service to the students as promised, 
560.4 	and to provide educational programs leading to degrees as offered;
560.5 	(3) the school operates in conformity with generally accepted accounting principles 
560.6 	according to the type of school;
560.7 	(4) the school provides an educational program leading to the degree it offers;
560.8 	(5) the school provides appropriate and accessible library, laboratory, and other physical 
560.9 	facilities to support the educational program offered;
560.10 	(6) the school has a policy on freedom or limitation of expression and inquiry for faculty 
560.11 	and students which is published or available on request;
560.12 	(7) the school uses only publications and advertisements which are truthful and do not 
560.13 	give any false, fraudulent, deceptive, inaccurate, or misleading impressions about the school, 
560.14 	its personnel, programs, services, or occupational opportunities for its graduates for promotion 
560.15 	and student recruitment;
560.16 	(8) the school's compensated recruiting agents who are operating in Minnesota identify 
560.17 	themselves as agents of the school when talking to or corresponding with students and 
560.18 	prospective students;
560.19 	(9) the school provides information to students and prospective students concerning:
560.20 	(i) comprehensive and accurate policies relating to student admission, evaluation, 
560.21 	suspension, and dismissal;
560.22 	(ii) clear and accurate policies relating to granting credit for prior education, training, 
560.23 	and experience and for courses offered by the school;
560.24 	(iii) current schedules of fees, charges for tuition, required supplies, student activities, 
560.25 	housing, and all other standard charges;
560.26 	(iv) policies regarding refunds and adjustments for withdrawal or modification of 
560.27 	enrollment status; and
560.28 	(v) procedures and standards used for selection of recipients and the terms of payment 
560.29 	and repayment for any financial aid program;
560.30 	(10) the school must not withhold a student's official transcript because the student is 
560.31 	in arrears or in default on any loan issued by the school to the student if the loan qualifies 
560.32 	as an institutional loan under United States Code, title 11, section 523(a)(8)(b); and
561.1 	(11) the school has a process to receive and act on student complaints;
561.2 	(12) the school includes a joint and several liability provision for torts and compliance 
561.3 	with the requirements of sections 136A.61 to 136A.71 in any contract effective after July 
561.4 	1, 2026, with any individual, entity, or postsecondary school located in another state for the 
561.5 	purpose of providing educational or training programs or awarding postsecondary credits 
561.6 	or continuing education credits to Minnesota residents that may be applied to a degree 
561.7 	program; and
561.8 	(13) the school must not use nondisclosure agreements or other contracts restricting a 
561.9 	student's ability to disclose information in connection with school actions or conduct that 
561.10 	would be covered under section 136A.672.
561.11 	(b) An application for degree approval must also include:
561.12 	(i) title of degree and formal recognition awarded;
561.13 	(ii) location where such degree will be offered;
561.14 	(iii) proposed implementation date of the degree;
561.15 	(iv) admissions requirements for the degree;
561.16 	(v) length of the degree;
561.17 	(vi) projected enrollment for a period of five years;
561.18 	(vii) the curriculum required for the degree, including course syllabi or outlines;
561.19 	(viii) statement of academic and administrative mechanisms planned for monitoring the 
561.20 	quality of the proposed degree;
561.21 	(ix) statement of satisfaction of professional licensure criteria, if applicable;
561.22 	(x) documentation of the availability of clinical, internship, externship, or practicum 
561.23 	sites, if applicable; and
561.24 	(xi) statement of how the degree fulfills the institution's mission and goals, complements 
561.25 	existing degrees, and contributes to the school's viability.

561.26 	Sec. 30. Minnesota Statutes 2022, section 136A.675, subdivision 2, is amended to read:
561.27 		Subd. 2.Additional reporting. (a) In addition to the information required for the 
561.28 	indicators in subdivision 1, an institution must notify the office within ten business days if 
561.29 	any of the events in paragraphs (b) to (e) occur.
561.30 	(b) Related to revenue, debt, and cash flow, notice is required if:
562.1 	(1) the institution defaulted on a debt payment or covenant and has not received a waiver 
562.2 	of the violation from the financial institution within 60 days;
562.3 	(2) for institutions with a federal composite score of less than 1.5, the institution's owner 
562.4 	withdraws equity that directly results in a composite score of less than 1.0, unless the 
562.5 	withdrawal is a transfer between affiliated entities included in a common composite score;
562.6 	(3) the United States Department of Education requires a 25 percent or greater Letter of 
562.7 	Credit, except when the Letter of Credit is imposed due to a change of ownership;
562.8 	(4) the United States Department of Education requires Heightened Cash Monitoring 2;
562.9 	(5) the institution receives written notification that it violated the United States 
562.10 	Department of Education's revenue requirement under United States Code, title 20, section 
562.11 	1094(a)(24), as amended; or
562.12 	(6) the institution receives written notification by the United States Department of 
562.13 	Education that it has fallen below minimum financial standards and that its continued 
562.14 	participation in Title IV is conditioned upon satisfying either the Zone Alternative,an 
562.15 	alternative standard set forth in Code of Federal Regulations, title 34, section 668.175, 
562.16 	paragraph (f), or a Letter of Credit Alternative, Code of Federal Regulations, title 34, section 
562.17 	668.175, paragraph (c).
562.18 	(c) Related to accreditation and licensing, notice is required if:
562.19 	(1) the institution receives written notification of probation, warning, show-cause, or 
562.20 	loss of institutional accreditation;
562.21 	(2) the institution receives written notification that its institutional accreditor lost federal 
562.22 	recognition; or
562.23 	(3) the institution receives written notification that it has materially violated state 
562.24 	authorization or institution licensing requirements in a different state that may lead to or 
562.25 	has led to the termination of the institution's ability to continue to provide educational 
562.26 	programs or otherwise continue to operate in that state.
562.27 	(d) Related to securities, notice is required if:
562.28 	(1) the Securities and Exchange Commission (i) issues an order suspending or revoking 
562.29 	the registration of the institution's securities, or (ii) suspends trading of the institution's 
562.30 	securities on any national securities exchange;
563.1 	(2) the national securities exchange on which the institution's securities are traded notifies 
563.2 	the institution that it is not in compliance with the exchange's listing requirements and the 
563.3 	institution's securities are delisted; or
563.4 	(3) the Securities and Exchange Commission is not in timely receipt of a required report 
563.5 	and did not issue an extension to file the report.
563.6 	(e) Related to criminal and civil investigations, notice is required if:
563.7 	(1) the institution receives written notification of a felony criminal indictment or charges 
563.8 	of the institution's owner;
563.9 	(2) the institution receives written notification of criminal indictment or charges of the 
563.10 	institution's officers related to operations of the institution; or
563.11 	(3) there has been a criminal, civil, or administrative adjudication of fraud or 
563.12 	misrepresentation in Minnesota or in another state or jurisdiction against the institution or 
563.13 	its owner, officers, agents, or sponsoring organization.

563.14 	Sec. 31. Minnesota Statutes 2022, section 136A.69, subdivision 1, is amended to read:
563.15 		Subdivision 1.Registration fees. (a) The office shall collect reasonable registration fees 
563.16 	that are sufficient to recover, but do not exceed, its costs of administering the registration 
563.17 	program. The office shall charge the fees listed in paragraphs (b) and (c) to (d) for new 
563.18 	registrations.
563.19 	(b) A new school offering no more than one degree at each level during its first year 
563.20 	must pay registration fees for each applicable level in the following amounts:

563.21	associate degree
	$2,000
	
563.22	baccalaureate degree
	$2,500
	
563.23	master's degree
	$3,000
	
563.24	doctorate degree
	$3,500
	
563.25 	(c) A new school that will offer more than one degree per level during its first year must 
563.26 	pay registration fees in an amount equal to the fee for the first degree at each degree level 
563.27 	under paragraph (b), plus fees for each additional nondegree program or degree as follows:

563.28	nondegree program
	$250
	
563.29	additional associate degree
	$250
	
563.30	additional baccalaureate degree
	$500
	
563.31	additional master's degree
	$750
	
563.32	additional doctorate degree
	$1,000
	
564.1 	(d) In addition to the fees under paragraphs (b) and (c), a fee of $600 must be paid for 
564.2 	an initial application that: (1) has had four revisions, corrections, amendment requests, or 
564.3 	application reminders for the same application or registration requirement; or (2) cumulatively 
564.4 	has had six revisions, corrections, amendment requests, or application reminders for the 
564.5 	same license application and the school seeks to continue with the application process with 
564.6 	additional application submissions. If this fee is paid, the school may submit two final 
564.7 	application submissions for review prior to application denial under section 136A.65, 
564.8 	subdivision 8. This provision excludes from its scope nonrepetitive questions or clarifications 
564.9 	initiated by the school before the submission of the application, initial interpretation questions 
564.10 	or inquiries from the office regarding a completed application, and initial requests from the 
564.11 	office for verification or validation of a completed application.
564.12 	(d) (e) The annual renewal registration fee is $1,500.
564.13 	(f) In addition to the fee under paragraph (e), a fee of $600 must be paid for a renewal 
564.14 	application that: (1) has had four revisions, corrections, amendment requests, or application 
564.15 	reminders for the same application or registration requirement; or (2) cumulatively has had 
564.16 	six revisions, corrections, amendment requests, or application reminders for the same license 
564.17 	application and the school seeks to continue with the application process with additional 
564.18 	application submissions. If this fee is paid, the school may submit two final application 
564.19 	submissions for review prior to application denial under section 136A.65, subdivision 8. 
564.20 	This provision excludes from its scope nonrepetitive questions or clarifications initiated by 
564.21 	the school before the submission of the application, initial interpretation questions or inquiries 
564.22 	from the office regarding a completed application, and initial requests from the office for 
564.23 	verification or validation of a completed application.

564.24 	Sec. 32. Minnesota Statutes 2022, section 136A.821, subdivision 5, is amended to read:
564.25 		Subd. 5.Private career school. "Private career school" means a person who maintains, 
564.26 	advertises, administers, solicits for, or conducts a physical presence for any program at less 
564.27 	than an associate degree level; is not registered as a private institution under sections 136A.61
564.28 	to 136A.71; and is not specifically exempted by section 136A.833.

564.29 	Sec. 33. Minnesota Statutes 2022, section 136A.821, is amended by adding a subdivision 
564.30 	to read:
564.31 		Subd. 20.Physical presence. "Physical presence" means presence within the state of 
564.32 	Minnesota for the purpose of conducting activity related to any program at less than an 
564.33 	associate degree level. Physical presence includes:
565.1 	(1) operating a location within the state;
565.2 	(2) offering instruction within or originating from Minnesota designed to impart 
565.3 	knowledge with response utilizing teachers, trainers, counselors or computer resources, 
565.4 	computer linking, or any form of electronic means;
565.5 	(3) granting an educational credential from a location within the state or to a student 
565.6 	within the state; and
565.7 	(4) using an agent, recruiter, institution, or business that solicits for enrollment or credits 
565.8 	or for the award of an educational credential.
565.9 	Physical presence does not include field trips, sanctioned sports recruiting activities, or 
565.10 	college fairs or other assemblies of schools in Minnesota. No school may enroll an individual, 
565.11 	allow an individual to sign any agreement obligating the person to the school, accept any 
565.12 	moneys from the individual, or follow up with an individual by means of an in-person 
565.13 	meeting in Minnesota at a college fair or assembly.

565.14 	Sec. 34. Minnesota Statutes 2022, section 136A.822, subdivision 1, is amended to read:
565.15 		Subdivision 1.Required. A private career school must not maintain, advertise, solicit 
565.16 	for, administer, or conduct a physical presence for any program in Minnesota without first 
565.17 	obtaining a license from the office.

565.18 	Sec. 35. Minnesota Statutes 2022, section 136A.822, subdivision 2, is amended to read:
565.19 		Subd. 2.Contract unenforceable. A contract entered into with a person for a program 
565.20 	by or on behalf of a person operating a private career school with a physical presence in 
565.21 	Minnesota to which a license has not been issued under sections 136A.821 to 136A.833, is 
565.22 	unenforceable in any action.

565.23 	Sec. 36. Minnesota Statutes 2022, section 136A.822, subdivision 6, is amended to read:
565.24 		Subd. 6.Bond. (a) No license shall be issued to any private career school which 
565.25 	maintains, conducts, solicits for, or advertises with a physical presence within the state of 
565.26 	Minnesota for any program, unless the applicant files with the office a continuous corporate 
565.27 	surety bond written by a company authorized to do business in Minnesota conditioned upon 
565.28 	the faithful performance of all contracts and agreements with students made by the applicant.
565.29 	(b)(1) The amount of the surety bond shall be ten percent of the preceding year's net 
565.30 	revenue from student tuition, fees, and other required institutional charges collected, but in 
565.31 	no event less than $10,000, except that a private career school may deposit a greater amount 
566.1 	at its own discretion. A private career school in each annual application for licensure must 
566.2 	compute the amount of the surety bond and verify that the amount of the surety bond complies 
566.3 	with this subdivision. A private career school that operates at two or more locations may 
566.4 	combine net revenue from student tuition, fees, and other required institutional charges 
566.5 	collected for all locations for the purpose of determining the annual surety bond requirement. 
566.6 	The net revenue from tuition and fees used to determine the amount of the surety bond 
566.7 	required for a private career school having a license for the sole purpose of recruiting students 
566.8 	in Minnesota shall be only that paid to the private career school by the students recruited 
566.9 	from Minnesota.
566.10 	(2) A person required to obtain a private career school license due to the use of 
566.11 	"academy," "institute," "college," or "university" in its name and which is also licensed by 
566.12 	another state agency or board, except not including those schools licensed exclusively in 
566.13 	order to participate in state grants or SELF loan financial aid programs, shall be required 
566.14 	to provide a school bond of $10,000.
566.15 	(c) The bond shall run to the state of Minnesota and to any person who may have a cause 
566.16 	of action against the applicant arising at any time after the bond is filed and before it is 
566.17 	canceled for breach of any contract or agreement made by the applicant with any student. 
566.18 	The aggregate liability of the surety for all breaches of the conditions of the bond shall not 
566.19 	exceed the principal sum deposited by the private career school under paragraph (b). The 
566.20 	surety of any bond may cancel it upon giving 60 days' notice in writing to the office and 
566.21 	shall be relieved of liability for any breach of condition occurring after the effective date 
566.22 	of cancellation.
566.23 	(d) In lieu of bond, the applicant may deposit with the commissioner of management 
566.24 	and budget a sum equal to the amount of the required surety bond in cash, an irrevocable 
566.25 	letter of credit issued by a financial institution equal to the amount of the required surety 
566.26 	bond, or securities as may be legally purchased by savings banks or for trust funds in an 
566.27 	aggregate market value equal to the amount of the required surety bond.
566.28 	(e) Failure of a private career school to post and maintain the required surety bond or 
566.29 	deposit under paragraph (d) may result in denial, suspension, or revocation of the school's 
566.30 	license.

566.31 	Sec. 37. Minnesota Statutes 2022, section 136A.822, subdivision 7, is amended to read:
566.32 		Subd. 7.Resident agent. Private career schools located outside the state of Minnesota 
566.33 	that offer, advertise, solicit for, or conduct any program have a physical presence within 
566.34 	the state of Minnesota shall first file with the secretary of state a sworn statement designating 
567.1 	a resident agent authorized to receive service of process. The statement shall designate the 
567.2 	secretary of state as resident agent for service of process in the absence of a designated 
567.3 	agent. If a private career school fails to file the statement, the secretary of state is designated 
567.4 	as the resident agent authorized to receive service of process. The authorization shall be 
567.5 	irrevocable as to causes of action arising out of transactions occurring prior to the filing of 
567.6 	written notice of withdrawal from the state of Minnesota filed with the secretary of state.

567.7 	Sec. 38. Minnesota Statutes 2022, section 136A.822, subdivision 8, is amended to read:
567.8 		Subd. 8.Minimum standards. A license shall be issued if the office first determines:
567.9 	(1) that the applicant has a sound financial condition with sufficient resources available 
567.10 	to:
567.11 	(i) meet the private career school's financial obligations;
567.12 	(ii) refund all tuition and other charges, within a reasonable period of time, in the event 
567.13 	of dissolution of the private career school or in the event of any justifiable claims for refund 
567.14 	against the private career school by the student body;
567.15 	(iii) provide adequate service to its students and prospective students; and
567.16 	(iv) maintain and support the private career school;
567.17 	(2) that the applicant has satisfactory facilities with sufficient tools and equipment and 
567.18 	the necessary number of work stations to prepare adequately the students currently enrolled, 
567.19 	and those proposed to be enrolled;
567.20 	(3) that the applicant employs a sufficient number of qualified teaching personnel to 
567.21 	provide the educational programs contemplated;
567.22 	(4) that the private career school has an organizational framework with administrative 
567.23 	and instructional personnel to provide the programs and services it intends to offer;
567.24 	(5) that the quality and content of each occupational course or program of study provides 
567.25 	education and adequate preparation to enrolled students for entry level positions in the 
567.26 	occupation for which prepared;
567.27 	(6) that the premises and conditions where the students work and study and the student 
567.28 	living quarters which are owned, maintained, recommended, or approved by the applicant 
567.29 	are sanitary, healthful, and safe, as evidenced by certificate of occupancy issued by the 
567.30 	municipality or county where the private career school is physically situated, a fire inspection 
567.31 	by the local or state fire marshal, or another verification deemed acceptable by the office;
568.1 	(7) that the contract or enrollment agreement used by the private career school complies 
568.2 	with the provisions in section 136A.826;
568.3 	(8) that contracts and agreements do not contain a wage assignment provision or a 
568.4 	confession of judgment clause; and
568.5 	(9) that there has been no adjudication of fraud or misrepresentation in any criminal, 
568.6 	civil, or administrative proceeding in any jurisdiction against the private career school or 
568.7 	its owner, officers, agents, or sponsoring organization;
568.8 	(10) that the private career school or its owners, officers, agents, or sponsoring 
568.9 	organization has not had a license revoked under section 136A.829 or its equivalent in other 
568.10 	states or has closed the institution prior to all students, enrolled at the time of the closure, 
568.11 	completing their program within two years of the effective date of the revocation; and
568.12 	(11) that the school includes a joint and several liability provision for torts and compliance 
568.13 	with the requirements of sections 136A.82 to 136A.834 in any contract effective after July 
568.14 	1, 2026, with any individual, entity, or postsecondary school located in another state for the 
568.15 	purpose of providing educational or training programs or awarding postsecondary credits 
568.16 	to Minnesota residents that may be applied to a program.

568.17 	Sec. 39. Minnesota Statutes 2022, section 136A.824, subdivision 1, is amended to read:
568.18 		Subdivision 1.Initial licensure fee. (a) The office processing fee for an initial licensure 
568.19 	application is:
568.20 	(1) $2,500 for a private career school that will offer no more than one program during 
568.21 	its first year of operation;
568.22 	(2) $750 for a private career school licensed exclusively due to the use of the term 
568.23 	"college," "university," "academy," or "institute" in its name, or licensed exclusively in 
568.24 	order to participate in state grant or SELF loan financial aid programs; and
568.25 	(3) $2,500, plus $500 for each additional program offered by the private career school, 
568.26 	for a private career school during its first year of operation.
568.27 	(b) In addition to the fee under paragraph (a), a fee of $600 must be paid for an initial 
568.28 	application that: (1) has had four revisions, corrections, amendment requests, or application 
568.29 	reminders for the same application or licensure requirement; or (2) cumulatively has had 
568.30 	six revisions, corrections, amendment requests, or application reminders for the same license 
568.31 	application and the private career school seeks to continue with the application process with 
568.32 	additional application submissions. If this fee is paid, the private career school may submit 
569.1 	two final application submissions for review prior to application denial under section 
569.2 	136A.829, subdivision 1, clause (2). This provision excludes from its scope nonrepetitive 
569.3 	questions or clarifications initiated by the school before the submission of the application, 
569.4 	initial interpretation questions or inquiries from the office regarding a completed application, 
569.5 	and initial requests from the office for verification or validation of a completed application.

569.6 	Sec. 40. Minnesota Statutes 2022, section 136A.824, subdivision 2, is amended to read:
569.7 		Subd. 2.Renewal licensure fee; late fee. (a) The office processing fee for a renewal 
569.8 	licensure application is:
569.9 	(1) for a private career school that offers one program, the license renewal fee is $1,150;
569.10 	(2) for a private career school that offers more than one program, the license renewal 
569.11 	fee is $1,150, plus $200 for each additional program with a maximum renewal licensing 
569.12 	fee of $2,000;
569.13 	(3) for a private career school licensed exclusively due to the use of the term "college," 
569.14 	"university," "academy," or "institute" in its name, the license renewal fee is $750; and
569.15 	(4) for a private career school licensed by another state agency and also licensed with 
569.16 	the office exclusively in order to participate in state student aid programs, the license renewal 
569.17 	fee is $750.
569.18 	(b) If a license renewal application is not received by the office by the close of business 
569.19 	at least 60 days before the expiration of the current license, a late fee of $100 per business 
569.20 	day, not to exceed $3,000, shall be assessed.
569.21 	(c) In addition to the fee under paragraph (a), a fee of $600 must be paid for a renewal 
569.22 	application that: (1) has had four revisions, corrections, amendment requests, or application 
569.23 	reminders for the same application or licensure requirement; or (2) cumulatively has had 
569.24 	six revisions, corrections, amendment requests, or application reminders for the same license 
569.25 	application and the private career school seeks to continue with the application process with 
569.26 	additional application submissions. If this fee is paid, the private career school may submit 
569.27 	two final application submissions for review prior to application denial under section 
569.28 	136A.829, subdivision 1, clause (2). This provision excludes from its scope nonrepetitive 
569.29 	questions or clarifications initiated by the school before the submission of the application, 
569.30 	initial interpretation questions or inquiries from the office regarding a completed application, 
569.31 	and initial requests from the office for verification or validation of a completed application.

570.1 	Sec. 41. Minnesota Statutes 2022, section 136A.828, subdivision 3, is amended to read:
570.2 		Subd. 3.False statements. (a) A private career school, agent, or solicitor shall not make, 
570.3 	or cause to be made, any statement or representation, oral, written or visual, in connection 
570.4 	with the offering or publicizing of a program, if the private career school, agent, or solicitor 
570.5 	knows or reasonably should have known the statement or representation to be false, 
570.6 	fraudulent, deceptive, substantially inaccurate, or misleading.
570.7 	(b) Other than opinion-based statements or puffery, a school shall only make claims that 
570.8 	are evidence-based, can be validated, and are based on current conditions and not on 
570.9 	conditions that are no longer relevant.
570.10 	(c) A school shall not guarantee or imply the guarantee of employment.
570.11 	(d) A school shall not guarantee or advertise any certain wage or imply earnings greater 
570.12 	than the prevailing wage for entry-level wages in the field of study for the geographic area 
570.13 	unless advertised wages are based on verifiable wage information from graduates.
570.14 	(e) If placement statistics are used in advertising or other promotional materials, the 
570.15 	school must be able to substantiate the statistics with school records. These records must 
570.16 	be made available to the office upon request. A school is prohibited from reporting the 
570.17 	following in placement statistics:
570.18 	(1) a student required to receive a job offer or start a job to be classified as a graduate;
570.19 	(2) a graduate if the graduate held a position before enrolling in the program, unless 
570.20 	graduating enabled the graduate to maintain the position or the graduate received a promotion 
570.21 	or raise upon graduation;
570.22 	(3) a graduate who works less than 20 hours per week; and
570.23 	(4) a graduate who is not expected to maintain the position for at least 180 days.
570.24 	(f) A school shall not use endorsements, commendations, or recommendations by a 
570.25 	student in favor of a school except with the consent of the student and without any offer of 
570.26 	financial or other material compensation. Endorsements may be used only when they portray 
570.27 	current conditions.
570.28 	(g) A school may advertise that the school or its programs have been accredited by an 
570.29 	accrediting agency recognized by the United States Department of Education or the Council 
570.30 	for Higher Education Accreditation, but shall not advertise any other accreditation unless 
570.31 	approved by the office. The office may approve an institution's advertising of accreditation 
570.32 	that is not recognized by the United States Department of Education or the Council for 
571.1 	Higher Education if that accreditation is industry specific. Clear distinction must be made 
571.2 	when the school is in candidacy or application status versus full accreditation.
571.3 	(h) A school may advertise that financial aid is available, including a listing of the 
571.4 	financial aid programs in which the school participates, but federal or state financial aid 
571.5 	shall not be used as a primary incentive in advertisement, promotion, or recruitment.
571.6 	(i) A school may advertise placement or career assistance, if offered, but shall not use 
571.7 	the words "wanted," "help wanted," or "trainee," either in the headline or the body of the 
571.8 	advertisement.
571.9 	(j) A school shall not be advertised under any "help wanted," "employment," or similar 
571.10 	classification.
571.11 	(k) A school shall not falsely claim that it is conducting a talent hunt, contest, or similar 
571.12 	test.
571.13 	(l) A school shall not make a claim that its program qualifies for a national certification 
571.14 	if that national certification entity is not accepted or recognized by Minnesota employers. 
571.15 	A school may validate that a national certification is accepted or recognized by Minnesota 
571.16 	employers by providing three certified letters from employers that the national certification 
571.17 	entity is recognized in Minnesota by employers.
571.18 	(l) (m) The commissioner, at any time, may require a retraction of a false, misleading, 
571.19 	or deceptive claim. To the extent reasonable, the retraction must be published in the same 
571.20 	manner as the original claim.

571.21 	Sec. 42. Minnesota Statutes 2022, section 136A.828, is amended by adding a subdivision 
571.22 	to read:
571.23 		Subd. 7.Nondisclosure agreements. No private career school shall use nondisclosure 
571.24 	agreements or other contracts restricting a student's ability to disclose information in 
571.25 	connection with school actions or conduct that would be covered under section 136A.8295.

571.26 	Sec. 43. Minnesota Statutes 2022, section 136A.829, subdivision 3, is amended to read:
571.27 		Subd. 3.Powers and duties. The office shall have (in addition to the powers and duties 
571.28 	now vested therein by law) the following powers and duties:
571.29 	(a) To negotiate and enter into interstate reciprocity agreements with similar agencies 
571.30 	in other states, if in the judgment of the office such agreements are or will be helpful in 
571.31 	effectuating the purposes of Laws 1973, chapter 714;
572.1 	(b) To grant conditional private career school license for periods of less than one year 
572.2 	if in the judgment of the office correctable deficiencies exist at the time of application and 
572.3 	when refusal to issue private career school license would adversely affect currently enrolled 
572.4 	students;
572.5 	(c) The office may upon its own motion, and shall upon the verified complaint in writing 
572.6 	of any person setting forth fact which, if proved, would constitute grounds for refusal or 
572.7 	revocation under Laws 1973, chapter 714, investigate the actions of any applicant or any 
572.8 	person or persons holding or claiming to hold a license or permit. However, before proceeding 
572.9 	to a hearing on the question of whether a license or permit shall be refused, revoked or 
572.10 	suspended for any cause enumerated in subdivision 1, the office shall grant a reasonable 
572.11 	time to the holder of or applicant for a license or permit to correct the situation. If within 
572.12 	such time the situation is corrected and the private career school is in compliance with the 
572.13 	provisions of sections 136A.82 to 136A.834, no further action leading to refusal, revocation, 
572.14 	or suspension shall be taken.
572.15 	(d) To grant a private career school a probationary license for periods of less than three 
572.16 	years if, in the judgment of the office, correctable deficiencies exist at the time of application 
572.17 	that need more than one year to correct and when the risk of harm to students can be 
572.18 	minimized through the use of restrictions and requirements as conditions of the license. 
572.19 	Probationary licenses may include requirements and restrictions for:
572.20 	(1) periodic monitoring and submission of reports on the school's deficiencies to ascertain 
572.21 	whether compliance improves;
572.22 	(2) periodic collaborative consultations with the school on noncompliance with sections 
572.23 	136A.82 to 136A.834 or how the institution is managing compliance;
572.24 	(3) the submission of contingency plans such as teach-out plans or transfer pathways 
572.25 	for students;
572.26 	(4) a prohibition from accepting tuition and fee payments prior to the add/drop period 
572.27 	of the current period of instruction or before the funds have been earned by the school 
572.28 	according to the refund requirements of section 136A.827;
572.29 	(5) a prohibition from enrolling new students;
572.30 	(6) enrollment caps;
572.31 	(7) the initiation of alternative processes and communications with students enrolled at 
572.32 	the school to notify students of deficiencies or probation status;
573.1 	(8) the submission of a surety under section 136A.822, subdivision 6, paragraph (b), 
573.2 	clause (1), that exceeds ten percent of the preceding year's net revenue from student tuition, 
573.3 	fees, and other required institutional charges collected; or
573.4 	(9) submission of closure information under section 136A.8225.

573.5 	Sec. 44. Minnesota Statutes 2022, section 136A.829, is amended by adding a subdivision 
573.6 	to read:
573.7 		Subd. 4.Effect. A private career school or its owners, officers, or sponsoring organization 
573.8 	is prohibited from applying for licensure under section 136A.822 within two years of the 
573.9 	effective date of a revocation or within two years from the last date of instruction if the 
573.10 	school closed prior to all students completing their courses and programs. A school applying 
573.11 	for licensure must:
573.12 	(1) meet the requirements for licensure under section 136A.822;
573.13 	(2) pay the licensure fees as a new school under section 136A.824, subdivision 1;
573.14 	(3) correct any deficiencies that were identified in the revocation order or closed school 
573.15 	requests under section 136A.8225;
573.16 	(4) pay any outstanding fines or penalties under section 136A.832; and
573.17 	(5) pay any outstanding student refunds under section 136A.827.

573.18 	Sec. 45. Minnesota Statutes 2023 Supplement, section 136A.833, subdivision 2, is amended 
573.19 	to read:
573.20 		Subd. 2.Exemption reasons. Sections 136A.821 to 136A.832 shall not apply to the 
573.21 	following:
573.22 	(1) public postsecondary institutions;
573.23 	(2) postsecondary institutions registered under sections 136A.61 to 136A.71;
573.24 	(3) postsecondary institutions exempt from registration under sections 136A.653, 
573.25 	subdivisions 1b, 2, 3, and 3a; 136A.657; and 136A.658;
573.26 	(4) private career schools of nursing accredited by the state Board of Nursing or an 
573.27 	equivalent public board of another state or foreign country;
573.28 	(5) (4) private schools complying with the requirements of section 120A.22, subdivision 
573.29 	4;
574.1 	(6) (5) courses taught to students in an apprenticeship program registered by the United 
574.2 	States Department of Labor or Minnesota Department of Labor and taught by or required 
574.3 	by a trade union. A trade union is an organization of workers in the same skilled occupation 
574.4 	or related skilled occupations who act together to secure all members favorable wages, 
574.5 	hours, and other working conditions;
574.6 	(7) (6) private career schools exclusively engaged in training physically or mentally 
574.7 	disabled persons for the state of Minnesota;
574.8 	(8) (7) private career schools licensed or approved by boards authorized under Minnesota 
574.9 	law to issue licenses for training programs except private career schools required to obtain 
574.10 	a private career school license due to the use of "academy," "institute," "college," or 
574.11 	"university" in their names;
574.12 	(9) (8) private career schools and educational programs, or training programs, contracted 
574.13 	for by persons, firms, corporations, government agencies, or associations, for the training 
574.14 	of their own employees, for which no fee is charged the employee, regardless of whether 
574.15 	that fee is reimbursed by the employer or third party after the employee successfully 
574.16 	completes the training;
574.17 	(10) (9) private career schools engaged exclusively in the teaching of purely avocational, 
574.18 	recreational, or remedial subjects that are not advertised or maintained for vocational or 
574.19 	career advancement, including adult basic education, as determined by the office except 
574.20 	private career schools required to obtain a private career school license due to the use of 
574.21 	"academy," "institute," "college," or "university" in their names unless the private career 
574.22 	school used "academy" or "institute" in its name prior to August 1, 2008;
574.23 	(11) (10) classes, courses, or programs conducted by a bona fide trade, professional, or 
574.24 	fraternal organization, solely for that organization's membership and not available to the 
574.25 	public. In making the determination that the organization is bona fide, the office may request 
574.26 	the school provide three certified letters from persons that qualify as evaluators under section 
574.27 	136A.828, subdivision 3, paragraph (l), that the organization is recognized in Minnesota;
574.28 	(12) (11) programs in the fine arts provided by organizations exempt from taxation under 
574.29 	section 290.05 and registered with the attorney general under chapter 309. For the purposes 
574.30 	of this clause, "fine arts" means activities resulting in artistic creation or artistic performance 
574.31 	of works of the imagination which are engaged in for the primary purpose of creative 
574.32 	expression rather than commercial sale, vocational or career advancement, or employment. 
574.33 	In making this determination the office may seek the advice and recommendation of the 
574.34 	Minnesota Board of the Arts;
575.1 	(13) (12) classes, courses, or programs intended to fulfill the continuing education 
575.2 	requirements for a bona fide licensure or certification in a profession, that have been approved 
575.3 	by a legislatively or judicially established board or agency responsible for regulating the 
575.4 	practice of the profession or by an industry-specific certification entity, and that are offered 
575.5 	exclusively to individuals with the professional licensure or certification. In making the 
575.6 	determination that the licensure or certification is bona fide, the office may request the 
575.7 	school provide three certified letters from persons that qualify as evaluators under section 
575.8 	136A.828, subdivision 3, paragraph (l), that the licensure and certification is recognized in 
575.9 	Minnesota;
575.10 	(14) (13) review classes, courses, or programs intended to prepare students to sit for 
575.11 	undergraduate, graduate, postgraduate, or occupational licensing, certification, or entrance 
575.12 	examinations and does not include the instruction to prepare students for that license, 
575.13 	occupation, certification, or exam;
575.14 	(15) (14) classes, courses, or programs providing 16 or fewer clock hours of instruction;
575.15 	(16) (15) classes, courses, or programs providing instruction in personal development
575.16 	that is not advertised or maintained for vocational or career advancement, modeling, or 
575.17 	acting;
575.18 	(17) (16) private career schools with no physical presence in Minnesota, as determined 
575.19 	by the office, engaged exclusively in offering distance instruction that are located in and 
575.20 	regulated by other states or jurisdictions if the distance education instruction does not include 
575.21 	internships, externships, field placements, or clinical placements for residents of Minnesota; 
575.22 	and
575.23 	(18) (17) private career schools providing exclusively training, instructional programs, 
575.24 	or courses where tuition, fees, and any other charges, regardless of payment or reimbursement 
575.25 	method, for a student to participate do not exceed $100.

575.26 	Sec. 46. Minnesota Statutes 2023 Supplement, section 136F.38, subdivision 3, is amended 
575.27 	to read:
575.28 		Subd. 3.Program eligibility. (a) Scholarships shall be awarded only to a student eligible 
575.29 	for resident tuition, as defined in section 135A.043, who is enrolled in any of the following 
575.30 	programs of study or certification: (1) advanced manufacturing; (2) agriculture; (3) health 
575.31 	care services; (4) information technology; (5) early childhood; (6) transportation; (7) 
575.32 	construction; (8) education; (9) public safety; (10) energy; or (10) (11) a program of study 
575.33 	under paragraph (b).
576.1 	(b) Each institution may add one additional area of study or certification, based on a 
576.2 	workforce shortage for full-time employment requiring postsecondary education that is 
576.3 	unique to the institution's specific region, as reported in the most recent Department of 
576.4 	Employment and Economic Development job vacancy survey data for the economic 
576.5 	development region in which the institution is located. A workforce shortage area is one in 
576.6 	which the job vacancy rate for full-time employment in a specific occupation in a region is 
576.7 	higher than the state average vacancy rate for that same occupation. The institution may 
576.8 	change the area of study or certification based on new data once every two years.
576.9 	(c) The student must be enrolled for at least nine credits in a two-year college in the 
576.10 	Minnesota State Colleges and Universities system to be eligible for first- and second-year 
576.11 	scholarships.
576.12 	(d) The student is eligible for a one-year transfer scholarship if the student transfers from 
576.13 	a two-year college after two or more terms, and the student is enrolled for at least nine 
576.14 	credits in a four-year university in the Minnesota State Colleges and Universities system.

576.15 	Sec. 47. [137.375] DISABLED VETERANS; UNIVERSITY OF MINNESOTA 
576.16 	LANDSCAPE ARBORETUM.
576.17 	(a) For purposes of this section, "disabled veteran" means a veteran as defined in section 
576.18 	197.447 who is certified as disabled. "Certified as disabled" means certified in writing by 
576.19 	the United States Department of Veterans Affairs or the state commissioner of veterans 
576.20 	affairs as having a permanent service-connected disability.
576.21 	(b) The University of Minnesota Landscape Arboretum is requested to provide a disabled 
576.22 	veteran unlimited access to the University of Minnesota Landscape Arboretum located in 
576.23 	the city of Chaska free of charge. The disabled veteran must provide a veteran photo 
576.24 	identification card with the term "service-connected" on the identification card, verifying 
576.25 	that the disabled veteran has a service-connected disability.

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

576.27 	Sec. 48. REPEALER.
 576.28 	(a) Minnesota Statutes 2022, section 135A.16, is repealed.
576.29 	(b) Minnesota Statutes 2023 Supplement, section 135A.162, subdivision 7, is repealed.

576.30 	EFFECTIVE DATE. Paragraph (a) is effective January 1, 2025.

577.1 	ARTICLE 36
577.2 	FIREARMS

577.3 	Section 1. Minnesota Statutes 2023 Supplement, section 299A.642, subdivision 15, is 
577.4 	amended to read:
577.5 		Subd. 15.Required reports. (a) By February 1 of each year, the commissioner of public 
577.6 	safety shall submit the following reports to the chairs and ranking minority members of the 
577.7 	senate and house of representatives committees and divisions having jurisdiction over 
577.8 	criminal justice policy and funding:
577.9 	(1) a report containing a summary of all audits conducted on multijurisdictional entities 
577.10 	under subdivision 4;
577.11 	(2) a report on the results of audits conducted on data submitted to the criminal gang 
577.12 	investigative data system under section 299C.091;
577.13 	(3) a report on the activities and goals of the coordinating council; and
577.14 	(4) a report on how funds appropriated for violent crime reduction strategies were used.
577.15 	(b) The report submitted under paragraph (a), clause (4), must include the following 
577.16 	information regarding actions taken by the Bureau of Criminal Apprehension and Violent 
577.17 	Crime Enforcement Teams receiving funding under this section:
577.18 	(1) the number of firearms seized;
577.19 	(2) the number of gun trafficking investigations conducted; and
577.20 	(3) a summary of the types of investigations conducted.

577.21 	Sec. 2. Minnesota Statutes 2023 Supplement, section 609.67, subdivision 1, is amended 
577.22 	to read:
577.23 		Subdivision 1.Definitions. (a) "Machine gun" means any firearm designed to discharge, 
577.24 	or capable of discharging automatically more than once by a single function of the trigger.
577.25 	(b) "Shotgun" means a weapon designed, redesigned, made or remade which is intended 
577.26 	to be fired from the shoulder and uses the energy of the explosive in a fixed shotgun shell 
577.27 	to fire through a smooth bore either a number of ball shot or a single projectile for each 
577.28 	single pull of the trigger.
577.29 	(c) "Short-barreled shotgun" means a shotgun having one or more barrels less than 18 
577.30 	inches in length and any weapon made from a shotgun if such weapon as modified has an 
577.31 	overall length less than 26 inches.
578.1 	(d) "Trigger activator" means:
578.2 	(1) a removable manual or power driven trigger activating device constructed and 
578.3 	designed so that, when attached to a firearm, the rate at which the trigger may be pulled 
578.4 	increases and the rate of fire of the firearm increases to that of a machine gun; or
578.5 	(2) a device that allows a semiautomatic firearm to shoot more than one shot with a 
578.6 	single pull of the trigger or by harnessing the recoil of energy of the semiautomatic firearm 
578.7 	to which it is affixed so that the trigger resets and continues firing without additional physical 
578.8 	manipulation of the trigger.; or
578.9 	(3) a device that allows a firearm to shoot one shot on the pull of the trigger and a second 
578.10 	shot on the release of the trigger without requiring a subsequent pull of the trigger.
578.11 	(e) "Machine gun conversion kit" means any part or combination of parts designed and 
578.12 	intended for use in converting a weapon into a machine gun, and any combination of parts 
578.13 	from which a machine gun can be assembled, but does not include a spare or replacement 
578.14 	part for a machine gun that is possessed lawfully under section 609.67, subdivision 3.

578.15 	EFFECTIVE DATE. This section is effective January 1, 2025.

578.16 	Sec. 3. Minnesota Statutes 2022, section 624.7141, is amended to read:
578.17 	624.7141 TRANSFER TO INELIGIBLE PERSON.
578.18 		Subdivision 1.Transfer prohibited. (a) A person is guilty of a gross misdemeanor who
578.19 	felony and may be sentenced to imprisonment for up to two years and to payment of a fine 
578.20 	of not more than $10,000 if the person intentionally transfers a pistol or semiautomatic 
578.21 	military-style assault weapon firearm to another if and the person knows or reasonably 
578.22 	should know that the transferee:
578.23 	(1) has been denied a permit to carry under section 624.714 because the transferee is 
578.24 	not eligible under section 624.713 to possess a pistol or semiautomatic military-style assault 
578.25 	weapon or any other firearm;
578.26 	(2) has been found ineligible to possess a pistol or semiautomatic military-style assault 
578.27 	weapon by a chief of police or sheriff as a result of an application for a transferee permit 
578.28 	or a transfer report; or
578.29 	(3) is disqualified under section 624.713 from possessing a pistol or semiautomatic 
578.30 	military-style assault weapon or any other firearm.
579.1 	(b) Paragraph (a) does not apply to the transfer of a firearm other than a pistol or 
579.2 	semiautomatic military-style assault weapon to a person under the age of 18 who is not 
579.3 	disqualified from possessing any other firearm.
579.4 		Subd. 2.Felony Aggravated offense. A violation of this section is a felony person who 
579.5 	violates this section may be sentenced to imprisonment for up to five years and to payment 
579.6 	of a fine of not more than $20,000 if the transferee possesses or uses the weapon within one 
579.7 	year after the transfer in furtherance of a felony crime of violence.
579.8 		Subd. 3.Subsequent eligibility. This section is not applicable to a transfer to a person 
579.9 	who became eligible to possess a pistol or semiautomatic military-style assault weapon 
579.10 	under section 624.713 after the transfer occurred but before the transferee used or possessed 
579.11 	the weapon in furtherance of any crime.
579.12 		Subd. 4.Affirmative defense. (a) As used in this subdivision, "family or household 
579.13 	member" has the meaning given in section 518B.01, subdivision 2, paragraph (b).
579.14 	(b) If proven by clear and convincing evidence, it is an affirmative defense to a violation 
579.15 	of this section that the defendant was a family or household member of the transferee and 
579.16 	committed the violation only under compulsion by the transferee who, by explicit or implicit 
579.17 	threats or other acts, created a reasonable apprehension in the mind of the defendant that 
579.18 	the refusal of the defendant to participate in the violation would result in the transferee 
579.19 	inflicting substantial bodily harm or death on the defendant or a family or household member 
579.20 	of the defendant.
579.21 	(c) The fact finder may consider any evidence of past acts that would constitute domestic 
579.22 	abuse, domestic or nondomestic assault, criminal sexual conduct, sexual extortion, sex 
579.23 	trafficking, labor trafficking, harassment or stalking, or any other crime that is a crime of 
579.24 	violence as defined in section 624.712, subdivision 5, or threats to commit any of these 
579.25 	crimes by the transferee toward the defendant or another when determining if the defendant 
579.26 	has proven the affirmative defense. Past prosecution is not required for the fact finder to 
579.27 	consider evidence of these acts. Nothing in this paragraph limits the ability of the fact finder 
579.28 	to consider other relevant evidence when determining if the defendant has proven the 
579.29 	affirmative defense.

579.30 	EFFECTIVE DATE. This section is effective August 1, 2024, and applies to crimes 
579.31 	committed on or after that date.

580.1 	ARTICLE 37
580.2 	AGRICULTURE APPROPRIATIONS

580.3 	Section 1. Laws 2023, chapter 43, article 1, section 2, is amended to read:

580.4	Sec. 2. DEPARTMENT OF AGRICULTURE

580.6580.5
	Subdivision 1.Total Appropriation
 	$
	92,025,000
88,325,000
	$
	72,223,000
80,243,000

580.7	Appropriations by Fund
	
580.8		2024
	2025
	
580.10580.9	General
	91,626,000
87,926,000
	71,824,000
79,844,000
	
580.11	Remediation
	399,000
	399,000
	
580.12 	The amounts that may be spent for each 
580.13 	purpose are specified in the following 
580.14 	subdivisions.

580.15	Subd. 2.Protection Services

580.16	Appropriations by Fund
	
580.17		2024
	2025
	
580.19580.18
	General
	32,034,000
32,084,000
	18,743,000
22,113,000
	
580.20	Remediation
	399,000
	399,000
	
580.21 	(a) $399,000 the first year and $399,000 the 
580.22 	second year are from the remediation fund for 
580.23 	administrative funding for the voluntary 
580.24 	cleanup program.
580.25 	(b) $625,000 the first year and $625,000
580.26 	$1,120,000 the second year are for the soil 
580.27 	health financial assistance program under 
580.28 	Minnesota Statutes, section 17.134. The 
580.29 	commissioner may award no more than 
580.30 	$50,000 of the appropriation each year to a 
580.31 	single recipient. Of the second year amount, 
580.32 	$495,000 is for projects located in Dodge, 
580.33 	Fillmore, Goodhue, Houston, Mower, 
580.34 	Olmsted, Wabasha, or Winona County. The 
580.35 	commissioner may use up to 6.5 percent of 
581.1 	this appropriation for costs incurred to 
581.2 	administer the program. Any unencumbered 
581.3 	balance does not cancel at the end of the first 
581.4 	year and is available in the second year. 
581.5 	Appropriations encumbered under contract on 
581.6 	or before June 30, 2025, for soil health 
581.7 	financial assistance grants are available until 
581.8 	June 30, 2027. The base for this appropriation 
581.9 	is $639,000 in fiscal year 2026 and each year 
581.10 	thereafter.
581.11 	(c) $800,000 the first year is and $75,000 the 
581.12 	second year are for transfer to the pollinator 
581.13 	research account established under Minnesota 
581.14 	Statutes, section 18B.051. The base for this 
581.15 	transfer is $100,000 in fiscal year 2026 and 
581.16 	each year thereafter.
581.17 	(d) $150,000 the first year and $150,000 the 
581.18 	second year are for transfer to the noxious 
581.19 	weed and invasive plant species assistance 
581.20 	account established under Minnesota Statutes, 
581.21 	section 18.89, to award grants under 
581.22 	Minnesota Statutes, section 18.90, to counties, 
581.23 	municipalities, and other weed management 
581.24 	entities, including Minnesota Tribal 
581.25 	governments as defined in Minnesota Statutes, 
581.26 	section 10.65. This is a onetime appropriation.
581.27 	(e) $175,000 the first year and $175,000 the 
581.28 	second year are for compensation for 
581.29 	destroyed or crippled livestock under 
581.30 	Minnesota Statutes, section 3.737. The first 
581.31 	year appropriation may be spent to compensate 
581.32 	for livestock that were destroyed or crippled 
581.33 	during fiscal year 2023. If the amount in the 
581.34 	first year is insufficient, the amount in the 
581.35 	second year is available in the first year. The 
582.1 	commissioner may use up to $5,000 each year 
582.2 	to reimburse expenses incurred by university 
582.3 	extension educators to provide fair market 
582.4 	values of destroyed or crippled livestock. If 
582.5 	the commissioner receives federal dollars to 
582.6 	pay claims for destroyed or crippled livestock, 
582.7 	an equivalent amount of this appropriation 
582.8 	may be used to reimburse nonlethal prevention 
582.9 	methods performed by federal wildlife services 
582.10 	staff.
582.11 	(f) $155,000 the first year and $155,000 the 
582.12 	second year are for compensation for crop 
582.13 	damage under Minnesota Statutes, section 
582.14 	3.7371. If the amount in the first year is 
582.15 	insufficient, the amount in the second year is 
582.16 	available in the first year. The commissioner 
582.17 	may use up to $10,000 of the appropriation 
582.18 	each year to reimburse expenses incurred by 
582.19 	the commissioner or the commissioner's 
582.20 	approved agent to investigate and resolve 
582.21 	claims, as well as for costs associated with 
582.22 	training for approved agents. The 
582.23 	commissioner may use up to $40,000 of the 
582.24 	appropriation each year to make grants to 
582.25 	producers for measures to protect stored crops 
582.26 	from elk damage. If the commissioner 
582.27 	determines that claims made under Minnesota 
582.28 	Statutes, section 3.737 or 3.7371, are 
582.29 	unusually high, amounts appropriated for 
582.30 	either program may be transferred to the 
582.31 	appropriation for the other program.
582.32 	(g) $825,000 the first year and $825,000 the 
582.33 	second year are to replace capital equipment 
582.34 	in the Department of Agriculture's analytical 
582.35 	laboratory.
583.1 	(h) $75,000 the first year and $75,000 the 
583.2 	second year are to support a meat processing 
583.3 	liaison position to assist new or existing meat 
583.4 	and poultry processing operations in getting 
583.5 	started, expanding, growing, or transitioning 
583.6 	into new business models.
583.7 	(i) $2,200,000 the first year and $1,650,000 
583.8 	the second year are additional funding to 
583.9 	maintain the current level of service delivery 
583.10 	for programs under this subdivision. The base 
583.11 	for this appropriation is $1,925,000 for fiscal 
583.12 	year 2026 and each year thereafter.
583.13 	(j) $250,000 the first year and $250,000 the 
583.14 	second year are for grants to organizations in 
583.15 	Minnesota to develop enterprises, supply 
583.16 	chains, and markets for continuous-living 
583.17 	cover crops and cropping systems in the early 
583.18 	stages of commercial development. For the 
583.19 	purposes of this paragraph, "continuous-living 
583.20 	cover crops and cropping systems" refers to 
583.21 	agroforestry, perennial biomass, perennial 
583.22 	forage, perennial grains, and winter-annual 
583.23 	cereal grains and oilseeds that have market 
583.24 	value as harvested or grazed commodities. By 
583.25 	February 1 each year, the commissioner must 
583.26 	submit a report to the chairs and ranking 
583.27 	minority members of the legislative 
583.28 	committees with jurisdiction over agriculture 
583.29 	finance and policy detailing uses of the funds 
583.30 	in this paragraph, including administrative 
583.31 	costs, and the achievements these funds 
583.32 	contributed to. The commissioner may use up 
583.33 	to 6.5 percent of this appropriation for 
583.34 	administrative costs. This is a onetime 
583.35 	appropriation.
584.1 	(k) $45,000 the first year and $45,000 the 
584.2 	second year are appropriated for 
584.3 	wolf-livestock conflict-prevention grants. The 
584.4 	commissioner may use some of this 
584.5 	appropriation to support nonlethal prevention 
584.6 	work performed by federal wildlife services. 
584.7 	This is a onetime appropriation.
584.8 	(l) $10,000,000 the first year is for transfer to 
584.9 	the grain indemnity account established in 
584.10 	Minnesota Statutes, section 223.24. This is a 
584.11 	onetime transfer.
584.12 	(m) $125,000 the first year and $125,000 the 
584.13 	second year are for the PFAS in pesticides 
584.14 	review. This is a onetime appropriation.
584.15 	(n) $1,941,000 the first year is for transfer to 
584.16 	the food handler license account. This is a 
584.17 	onetime transfer.
584.18 	(o) $2,800,000 the second year is for nitrate 
584.19 	home water treatment, including reverse 
584.20 	osmosis, for private drinking-water wells with 
584.21 	nitrate in excess of the maximum contaminant 
584.22 	level of ten milligrams per liter and located in 
584.23 	Dodge, Fillmore, Goodhue, Houston, Mower, 
584.24 	Olmsted, Wabasha, or Winona County. The 
584.25 	commissioner must prioritize households at 
584.26 	or below 300 percent of the federal poverty 
584.27 	guideline and households with infants or 
584.28 	pregnant individuals. The commissioner may 
584.29 	also use this appropriation for education, 
584.30 	outreach, and technical assistance to 
584.31 	homeowners. The commissioner of agriculture 
584.32 	may transfer money to the commissioner of 
584.33 	health to establish and administer a mitigation 
584.34 	program for contaminated wells located in 
584.35 	Dodge, Fillmore, Goodhue, Houston, Mower, 
585.1 	Olmsted, Wabasha, or Winona County. 
585.2 	Notwithstanding Minnesota Statutes, section 
585.3 	16B.98, subdivision 14, the commissioner may 
585.4 	use up to 6.5 percent of this appropriation for 
585.5 	administrative costs. This is a onetime 
585.6 	appropriation and is available until June 30, 
585.7 	2027.
585.8 	(p) $50,000 the first year is to convene a 
585.9 	working group of interested parties, including 
585.10 	representatives from the Department of 
585.11 	Natural Resources, to investigate and 
585.12 	recommend options for addressing crop and 
585.13 	fence destruction due to Cervidae. By 
585.14 	February 1, 2025, the commissioner must 
585.15 	submit a report on the findings and 
585.16 	recommendations of the working group to the 
585.17 	chairs and ranking minority members of the 
585.18 	legislative committees with jurisdiction over 
585.19 	agriculture policy and finance. 
585.20 	Notwithstanding Minnesota Statutes, section 
585.21 	16A.28, any unencumbered balance does not 
585.22 	cancel at the end of the first year and is 
585.23 	available in the second year. This is a onetime 
585.24 	appropriation.

585.25
585.26	Subd. 3.Agricultural Marketing and 
Development
 		5,165,000
		4,985,000
	
585.27 	(a) $150,000 the first year and $150,000 the 
585.28 	second year are to expand international trade 
585.29 	opportunities and markets for Minnesota 
585.30 	agricultural products.
585.31 	(b) $186,000 the first year and $186,000 the 
585.32 	second year are for transfer to the Minnesota 
585.33 	grown account and may be used as grants for 
585.34 	Minnesota grown promotion under Minnesota 
585.35 	Statutes, section 17.102. Notwithstanding 
586.1 	Minnesota Statutes, section 16A.28, the 
586.2 	appropriations encumbered under contract on 
586.3 	or before June 30, 2025, for Minnesota grown 
586.4 	grants in this paragraph are available until June 
586.5 	30, 2027.
586.6 	(c) $634,000 the first year and $634,000 the 
586.7 	second year are for the continuation of the 
586.8 	dairy development and profitability 
586.9 	enhancement programs, including dairy 
586.10 	profitability teams and dairy business planning 
586.11 	grants under Minnesota Statutes, section 
586.12 	32D.30.
586.13 	(d) The commissioner may use funds 
586.14 	appropriated in this subdivision for annual 
586.15 	cost-share payments to resident farmers or 
586.16 	entities that sell, process, or package 
586.17 	agricultural products in this state for the costs 
586.18 	of organic certification. The commissioner 
586.19 	may allocate these funds for assistance to 
586.20 	persons transitioning from conventional to 
586.21 	organic agriculture.
586.22 	(e) $600,000 the first year and $420,000 the 
586.23 	second year are to maintain the current level 
586.24 	of service delivery. The base for this 
586.25 	appropriation is $490,000 $510,000 for fiscal 
586.26 	year 2026 and each year thereafter.
586.27 	(f) $100,000 the first year and $100,000 the 
586.28 	second year are for mental health outreach and 
586.29 	support to farmers, ranchers, and others in the 
586.30 	agricultural community and for farm safety 
586.31 	grant and outreach programs under Minnesota 
586.32 	Statutes, section 17.1195. Mental health 
586.33 	outreach and support may include a 24-hour 
586.34 	hotline, stigma reduction, and education. 
586.35 	Notwithstanding Minnesota Statutes, section 
587.1 	16A.28, any unencumbered balance does not 
587.2 	cancel at the end of the first year and is 
587.3 	available in the second year. This is a onetime 
587.4 	appropriation.
587.5 	(g) $100,000 the first year and $100,000 the 
587.6 	second year are to award and administer grants 
587.7 	for infrastructure and other forms of financial 
587.8 	assistance to support EBT, SNAP, SFMNP, 
587.9 	and related programs at farmers markets. 
587.10 	Notwithstanding Minnesota Statutes, section 
587.11 	16A.28, any unencumbered balance does not 
587.12 	cancel at the end of the first year and is 
587.13 	available in the second year. This is a onetime 
587.14 	appropriation.
587.15 	(h) $200,000 the first year and $200,000 the 
587.16 	second year are to award cooperative grants 
587.17 	under Minnesota Statutes, section 17.1016. 
587.18 	The commissioner may use up to 6.5 percent 
587.19 	of the appropriation each year to administer 
587.20 	the grant program. Notwithstanding Minnesota 
587.21 	Statutes, section 16A.28, any unencumbered 
587.22 	balance does not cancel at the end of the first 
587.23 	year and is available in the second year. This 
587.24 	is a onetime appropriation.

587.25
587.26	Subd. 4.Agriculture, Bioenergy, and Bioproduct 
Advancement
 		37,809,000
34,034,000
		33,809,000
38,159,000
	
587.27 	(a) $10,702,000 the first year and $10,702,000 
587.28 	the second year are for the agriculture 
587.29 	research, education, extension, and technology 
587.30 	transfer program under Minnesota Statutes, 
587.31 	section 41A.14. Except as provided below, 
587.32 	the appropriation each year is for transfer to 
587.33 	the agriculture research, education, extension, 
587.34 	and technology transfer account under 
587.35 	Minnesota Statutes, section 41A.14, 
588.1 	subdivision 3, and the commissioner shall 
588.2 	transfer funds each year to the Board of 
588.3 	Regents of the University of Minnesota for 
588.4 	purposes of Minnesota Statutes, section 
588.5 	41A.14. To the extent practicable, money 
588.6 	expended under Minnesota Statutes, section 
588.7 	41A.14, subdivision 1, clauses (1) and (2), 
588.8 	must supplement and not supplant existing 
588.9 	sources and levels of funding. The 
588.10 	commissioner may use up to one percent of 
588.11 	this appropriation for costs incurred to 
588.12 	administer the program.
588.13 	Of the amount appropriated for the agriculture 
588.14 	research, education, extension, and technology 
588.15 	transfer grant program under Minnesota 
588.16 	Statutes, section 41A.14:
588.17 	(1) $600,000 the first year and $600,000 the 
588.18 	second year are for the Minnesota Agricultural 
588.19 	Experiment Station's agriculture rapid 
588.20 	response fund under Minnesota Statutes, 
588.21 	section 41A.14, subdivision 1, clause (2);
588.22 	(2) up to $1,000,000 the first year and up to 
588.23 	$1,000,000 the second year are for research 
588.24 	on avian influenza, salmonella, and other 
588.25 	turkey-related diseases and disease prevention 
588.26 	measures;
588.27 	(3) $2,250,000 the first year and $2,250,000 
588.28 	the second year are for grants to the Minnesota 
588.29 	Agricultural Education Leadership Council to 
588.30 	enhance agricultural education with priority 
588.31 	given to Farm Business Management 
588.32 	challenge grants;
588.33 	(4) $450,000 the first year is for the cultivated 
588.34 	wild rice breeding project at the North Central 
589.1 	Research and Outreach Center to include a 
589.2 	tenure track/research associate plant breeder;
589.3 	(5) $350,000 the first year and $350,000 the 
589.4 	second year are for potato breeding;
589.5 	(6) $802,000 the first year and $802,000 the 
589.6 	second year are to fund the Forever Green 
589.7 	Initiative and protect the state's natural 
589.8 	resources while increasing the efficiency, 
589.9 	profitability, and productivity of Minnesota 
589.10 	farmers by incorporating perennial and 
589.11 	winter-annual crops into existing agricultural 
589.12 	practices. The base for the allocation under 
589.13 	this clause is $802,000 in fiscal year 2026 and 
589.14 	each year thereafter. By February 1 each year, 
589.15 	the dean of the College of Food, Agricultural 
589.16 	and Natural Resource Sciences must submit 
589.17 	a report to the chairs and ranking minority 
589.18 	members of the legislative committees with 
589.19 	jurisdiction over agriculture finance and policy 
589.20 	and higher education detailing uses of the 
589.21 	funds in this paragraph, including 
589.22 	administrative costs, and the achievements 
589.23 	these funds contributed to; and
589.24 	(7) $350,000 each year is for farm-scale winter 
589.25 	greenhouse research and development 
589.26 	coordinated by University of Minnesota 
589.27 	Extension Regional Sustainable Development 
589.28 	Partnerships. The allocation in this clause is 
589.29 	onetime.;
589.30 	(8) $200,000 the second year is for research 
589.31 	on natural stands of wild rice; and
589.32 	(9) $250,000 the second year is for the 
589.33 	cultivated wild rice forward selection project 
589.34 	at the North Central Research and Outreach 
590.1 	Center, including a tenure track or research 
590.2 	associate plant scientist.
590.3 	(b) The base for the agriculture research, 
590.4 	education, extension, and technology transfer 
590.5 	program is $10,352,000 in fiscal year 2026 
590.6 	and $10,352,000 in fiscal year 2027.
590.7 	(c) $27,107,000 $23,332,000 the first year and 
590.8 	$23,107,000 the second year are is for the 
590.9 	agricultural growth, research, and innovation 
590.10 	program under Minnesota Statutes, section 
590.11 	41A.12. Except as provided below, the 
590.12 	commissioner may allocate this appropriation 
590.13 	each year among the following areas: 
590.14 	facilitating the start-up, modernization, 
590.15 	improvement, or expansion of livestock 
590.16 	operations, including beginning and 
590.17 	transitioning livestock operations with 
590.18 	preference given to robotic dairy-milking 
590.19 	equipment; assisting value-added agricultural 
590.20 	businesses to begin or expand, to access new 
590.21 	markets, or to diversify, including aquaponics 
590.22 	systems, with preference given to hemp fiber 
590.23 	processing equipment; facilitating the start-up, 
590.24 	modernization, or expansion of other 
590.25 	beginning and transitioning farms, including 
590.26 	by providing loans under Minnesota Statutes, 
590.27 	section 41B.056; sustainable agriculture 
590.28 	on-farm research and demonstration; the 
590.29 	development or expansion of food hubs and 
590.30 	other alternative community-based food 
590.31 	distribution systems; enhancing renewable 
590.32 	energy infrastructure and use; crop research, 
590.33 	including basic and applied turf seed research; 
590.34 	Farm Business Management tuition assistance; 
590.35 	and good agricultural practices and good 
591.1 	handling practices certification assistance. The 
591.2 	commissioner may use up to 6.5 percent of 
591.3 	this appropriation for costs incurred to 
591.4 	administer the program.
591.5 	Of the amount appropriated for the agricultural 
591.6 	growth, research, and innovation program 
591.7 	under Minnesota Statutes, section 41A.12:
591.8 	(1) $1,000,000 the first year and $1,000,000 
591.9 	the second year are is for distribution in equal 
591.10 	amounts to each of the state's county fairs to 
591.11 	preserve and promote Minnesota agriculture;
591.12 	(2) $5,750,000 the first year and $5,750,000 
591.13 	the second year are is for incentive payments 
591.14 	under Minnesota Statutes, sections 41A.16, 
591.15 	41A.17, 41A.18, and 41A.20. Notwithstanding 
591.16 	Minnesota Statutes, section 16A.28, the first 
591.17 	year appropriation is available until June 30, 
591.18 	2025, and the second year appropriation is 
591.19 	available until June 30, 2026. If this 
591.20 	appropriation exceeds the total amount for 
591.21 	which all producers are eligible in a fiscal 
591.22 	year, the balance of the appropriation is 
591.23 	available for other purposes under this 
591.24 	paragraph. The base under this clause is 
591.25 	$3,000,000 in fiscal year 2026 and each year 
591.26 	thereafter;
591.27 	(3) $3,375,000 the first year and $3,375,000 
591.28 	the second year are is for grants that enable 
591.29 	retail petroleum dispensers, fuel storage tanks, 
591.30 	and other equipment to dispense biofuels to 
591.31 	the public in accordance with the biofuel 
591.32 	replacement goals established under 
591.33 	Minnesota Statutes, section 239.7911. A retail 
591.34 	petroleum dispenser selling petroleum for use 
591.35 	in spark ignition engines for vehicle model 
592.1 	years after 2000 is eligible for grant money 
592.2 	under this clause if the retail petroleum 
592.3 	dispenser has no more than 10 retail petroleum 
592.4 	dispensing sites and each site is located in 
592.5 	Minnesota. The grant money must be used to 
592.6 	replace or upgrade equipment that does not 
592.7 	have the ability to be certified for E25. A grant 
592.8 	award must not exceed 65 percent of the cost 
592.9 	of the appropriate technology. A grant award 
592.10 	must not exceed $200,000 per station. The 
592.11 	commissioner must cooperate with biofuel 
592.12 	stakeholders in the implementation of the grant 
592.13 	program. The commissioner, in cooperation 
592.14 	with any economic or community development 
592.15 	financial institution and any other entity with 
592.16 	which the commissioner contracts, must 
592.17 	submit a report on the biofuels infrastructure 
592.18 	financial assistance program by January 15 of 
592.19 	each year to the chairs and ranking minority 
592.20 	members of the legislative committees and 
592.21 	divisions with jurisdiction over agriculture 
592.22 	policy and finance. The annual report must 
592.23 	include but not be limited to a summary of the 
592.24 	following metrics: (i) the number and types 
592.25 	of projects financed; (ii) the amount of dollars 
592.26 	leveraged or matched per project; (iii) the 
592.27 	geographic distribution of financed projects; 
592.28 	(iv) any market expansion associated with 
592.29 	upgraded infrastructure; (v) the demographics 
592.30 	of the areas served; (vi) the costs of the 
592.31 	program; and (vii) the number of grants to 
592.32 	minority-owned or female-owned businesses. 
592.33 	The base under this clause is $3,000,000 for 
592.34 	fiscal year 2026 and each year thereafter;
592.35 	(4) $1,250,000 the first year and $1,250,000 
592.36 	the second year are is for grants to facilitate 
593.1 	the start-up, modernization, or expansion of 
593.2 	meat, poultry, egg, and milk processing 
593.3 	facilities. A grant award under this clause must 
593.4 	not exceed $200,000. Any unencumbered 
593.5 	balance at the end of the second year does not 
593.6 	cancel until June 30, 2026, and may be used 
593.7 	for other purposes under this paragraph. The 
593.8 	base under this clause is $250,000 in fiscal 
593.9 	year 2026 and each year thereafter;
593.10 	(5) $1,150,000 the first year and $1,150,000 
593.11 	the second year are is for providing more 
593.12 	fruits, vegetables, meat, poultry, grain, and 
593.13 	dairy for children in school and early 
593.14 	childhood education centers settings, 
593.15 	including, at the commissioner's discretion, 
593.16 	providing grants to reimburse schools and 
593.17 	early childhood education centers and child 
593.18 	care providers for purchasing equipment and 
593.19 	agricultural products. Organizations must 
593.20 	participate in the National School Lunch 
593.21 	Program or the Child and Adult Care Food 
593.22 	Program to be eligible. Of the amount 
593.23 	appropriated, $150,000 each year is for a 
593.24 	statewide coordinator of farm-to-institution 
593.25 	strategy and programming. The coordinator 
593.26 	must consult with relevant stakeholders and 
593.27 	provide technical assistance and training for 
593.28 	participating farmers and eligible grant 
593.29 	recipients. The base under this clause is 
593.30 	$1,294,000 in fiscal year 2026 and each year 
593.31 	thereafter;
593.32 	(6) $4,000,000 the first year is for Dairy 
593.33 	Assistance, Investment, Relief Initiative 
593.34 	(DAIRI) grants and other forms of financial 
593.35 	assistance to Minnesota dairy farms that enroll 
594.1 	in coverage under a federal dairy risk 
594.2 	protection program and produced no more 
594.3 	than 16,000,000 pounds of milk in 2022. The 
594.4 	commissioner must make DAIRI payments 
594.5 	based on the amount of milk produced in 
594.6 	2022, up to 5,000,000 pounds per participating 
594.7 	farm, at a rate determined by the commissioner 
594.8 	within the limits of available funding. Any 
594.9 	unencumbered balance does not cancel at the 
594.10 	end of the first year and is available in the 
594.11 	second year. Any unencumbered balance at 
594.12 	the end of the second year does not cancel 
594.13 	until June 30, 2026, and may be used for other 
594.14 	purposes under this paragraph. The allocation 
594.15 	in this clause is onetime;
594.16 	(7) (6) $2,000,000 the first year and 
594.17 	$2,000,000 the second year are is for urban 
594.18 	youth agricultural education or urban 
594.19 	agriculture community development; and
594.20 	(8) (7) $1,000,000 the first year and 
594.21 	$1,000,000 the second year are is for the good 
594.22 	food access program under Minnesota 
594.23 	Statutes, section 17.1017.; and
594.24 	(8) $225,000 the first year is to provide grants 
594.25 	to secondary career and technical education 
594.26 	programs for the purpose of offering 
594.27 	instruction in meat cutting and butchery. 
594.28 	Notwithstanding Minnesota Statutes, section 
594.29 	16B.98, subdivision 14, the commissioner may 
594.30 	use up to 6.5 percent of this appropriation for 
594.31 	administrative costs. This is a onetime 
594.32 	appropriation. Grants may be used for costs, 
594.33 	including but not limited to:
594.34 	(i) equipment required for a meat cutting 
594.35 	program;
595.1 	(ii) facility renovation to accommodate meat 
595.2 	cutting; and
595.3 	(iii) training faculty to teach the fundamentals 
595.4 	of meat processing.
595.5 	A grant recipient may be awarded a grant of 
595.6 	up to $75,000 and may use up to ten percent 
595.7 	of the grant for faculty training. Priority may 
595.8 	be given to applicants who are coordinating 
595.9 	with meat cutting and butchery programs at 
595.10 	Minnesota State Colleges and Universities 
595.11 	institutions or with local industry partners.
595.12 	By January 15, 2025, the commissioner must 
595.13 	report to the chairs and ranking minority 
595.14 	members of the legislative committees with 
595.15 	jurisdiction over agriculture finance and 
595.16 	education finance by listing the grants made 
595.17 	under this paragraph by county and noting the 
595.18 	number and amount of grant requests not 
595.19 	fulfilled. The report may include additional 
595.20 	information as determined by the 
595.21 	commissioner, including but not limited to 
595.22 	information regarding the outcomes produced 
595.23 	by these grants. If additional grants are 
595.24 	awarded under this paragraph that were not 
595.25 	covered in the report due by January 15, 2025, 
595.26 	the commissioner must submit an additional 
595.27 	report to the chairs and ranking minority 
595.28 	members of the legislative committees with 
595.29 	jurisdiction over agriculture finance and 
595.30 	education finance regarding all grants issued 
595.31 	under this paragraph by November 1, 2025.
595.32 	Notwithstanding Minnesota Statutes, section 
595.33 	16A.28, any unencumbered balance does not 
595.34 	cancel at the end of the first year and is 
595.35 	available for the second year, and 
596.1 	appropriations encumbered under contract on 
596.2 	or before June 30, 2025, for agricultural 
596.3 	growth, research, and innovation grants are 
596.4 	available until June 30, 2028.
596.5 	(d) $27,457,000 the second year is for the 
596.6 	agricultural growth, research, and innovation 
596.7 	program under Minnesota Statutes, section 
596.8 	41A.12. Except as provided below, the 
596.9 	commissioner may allocate this appropriation 
596.10 	among the following areas: facilitating the 
596.11 	start-up, modernization, improvement, or 
596.12 	expansion of livestock operations, including 
596.13 	beginning and transitioning livestock 
596.14 	operations with preference given to robotic 
596.15 	dairy-milking equipment; assisting 
596.16 	value-added agricultural businesses to begin 
596.17 	or expand, to access new markets, or to 
596.18 	diversify, including aquaponics systems, with 
596.19 	preference given to hemp fiber processing 
596.20 	equipment; facilitating the start-up, 
596.21 	modernization, or expansion of other 
596.22 	beginning and transitioning farms, including 
596.23 	by providing loans under Minnesota Statutes, 
596.24 	section 41B.056; sustainable agriculture 
596.25 	on-farm research and demonstration; the 
596.26 	development or expansion of food hubs and 
596.27 	other alternative community-based food 
596.28 	distribution systems; enhancing renewable 
596.29 	energy infrastructure and use; crop research, 
596.30 	including basic and applied turf seed research; 
596.31 	Farm Business Management tuition assistance; 
596.32 	and good agricultural practices and good 
596.33 	handling practices certification assistance. The 
596.34 	commissioner may use up to 6.5 percent of 
596.35 	this appropriation for costs incurred to 
596.36 	administer the program.
597.1 	Of the amount appropriated for the agricultural 
597.2 	growth, research, and innovation program 
597.3 	under Minnesota Statutes, section 41A.12:
597.4 	(1) $1,000,000 the second year is for 
597.5 	distribution in equal amounts to each of the 
597.6 	state's county fairs to preserve and promote 
597.7 	Minnesota agriculture;
597.8 	(2) $5,750,000 the second year is for incentive 
597.9 	payments under Minnesota Statutes, sections 
597.10 	41A.16, 41A.17, 41A.18, and 41A.20. 
597.11 	Notwithstanding Minnesota Statutes, section 
597.12 	16A.28, this appropriation is available until 
597.13 	June 30, 2027. If this appropriation exceeds 
597.14 	the total amount for which all producers are 
597.15 	eligible in a fiscal year, the balance of the 
597.16 	appropriation is available for other purposes 
597.17 	under this paragraph. The base under this 
597.18 	clause is $3,000,000 in fiscal year 2026 and 
597.19 	each year thereafter;
597.20 	(3) $3,375,000 the second year is for grants 
597.21 	that enable retail petroleum dispensers, fuel 
597.22 	storage tanks, and other equipment to dispense 
597.23 	biofuels to the public in accordance with the 
597.24 	biofuel replacement goals established under 
597.25 	Minnesota Statutes, section 239.7911. A retail 
597.26 	petroleum dispenser selling petroleum for use 
597.27 	in spark ignition engines for vehicle model 
597.28 	years after 2000 is eligible for grant money 
597.29 	under this clause if the retail petroleum 
597.30 	dispenser has no more than ten retail 
597.31 	petroleum dispensing sites and each site is 
597.32 	located in Minnesota. The grant money must 
597.33 	be used to replace or upgrade equipment that 
597.34 	does not have the ability to be certified for 
597.35 	E25. A grant award must not exceed 65 
598.1 	percent of the cost of the appropriate 
598.2 	technology. A grant award must not exceed 
598.3 	$200,000 per station. The commissioner must 
598.4 	cooperate with biofuel stakeholders in the 
598.5 	implementation of the grant program. The 
598.6 	commissioner, in cooperation with any 
598.7 	economic or community development 
598.8 	financial institution and any other entity with 
598.9 	which the commissioner contracts, must 
598.10 	submit a report on the biofuels infrastructure 
598.11 	financial assistance program by January 15 of 
598.12 	each year to the chairs and ranking minority 
598.13 	members of the legislative committees and 
598.14 	divisions with jurisdiction over agriculture 
598.15 	policy and finance. The annual report must 
598.16 	include but not be limited to a summary of the 
598.17 	following metrics: (i) the number and types 
598.18 	of projects financed; (ii) the amount of money 
598.19 	leveraged or matched per project; (iii) the 
598.20 	geographic distribution of financed projects; 
598.21 	(iv) any market expansion associated with 
598.22 	upgraded infrastructure; (v) the demographics 
598.23 	of the areas served; (vi) the costs of the 
598.24 	program; and (vii) the number of grants to 
598.25 	minority-owned or female-owned businesses. 
598.26 	The base under this clause is $3,000,000 for 
598.27 	fiscal year 2026 and each year thereafter;
598.28 	(4) $1,250,000 the second year is for grants 
598.29 	to facilitate the start-up, modernization, or 
598.30 	expansion of meat, poultry, egg, and milk 
598.31 	processing facilities. A grant award under this 
598.32 	clause must not exceed $200,000. Any 
598.33 	unencumbered balance at the end of the second 
598.34 	year does not cancel until June 30, 2027, and 
598.35 	may be used for other purposes under this 
598.36 	paragraph. The base under this clause is 
599.1 	$250,000 in fiscal year 2026 and each year 
599.2 	thereafter;
599.3 	(5) $1,275,000 the second year is for providing 
599.4 	more fruits, vegetables, meat, poultry, grain, 
599.5 	and dairy for children in school and early 
599.6 	childhood education settings, including, at the 
599.7 	commissioner's discretion, providing grants 
599.8 	to reimburse schools and early childhood 
599.9 	education and child care providers for 
599.10 	purchasing equipment and agricultural 
599.11 	products. Organizations must participate in 
599.12 	the National School Lunch Program or the 
599.13 	Child and Adult Care Food Program to be 
599.14 	eligible. Of the amount appropriated, $150,000 
599.15 	is for a statewide coordinator of 
599.16 	farm-to-institution strategy and programming. 
599.17 	The coordinator must consult with relevant 
599.18 	stakeholders and provide technical assistance 
599.19 	and training for participating farmers and 
599.20 	eligible grant recipients. The base under this 
599.21 	clause is $1,294,000 in fiscal year 2026 and 
599.22 	each year thereafter;
599.23 	(6) $4,000,000 the second year is for Dairy 
599.24 	Assistance, Investment, Relief Initiative 
599.25 	(DAIRI) grants and other forms of financial 
599.26 	assistance to Minnesota dairy farms that enroll 
599.27 	in coverage under a federal dairy risk 
599.28 	protection program and produced no more 
599.29 	than 16,000,000 pounds of milk in 2022. The 
599.30 	commissioner must make DAIRI payments 
599.31 	based on the amount of milk produced in 
599.32 	2022, up to 5,000,000 pounds per participating 
599.33 	farm, at a rate determined by the commissioner 
599.34 	within the limits of available funding. Any 
599.35 	unencumbered balance on June 30, 2026, may 
600.1 	be used for other purposes under this 
600.2 	paragraph. The allocation in this clause is 
600.3 	onetime;
600.4 	(7) $2,000,000 the second year is for urban 
600.5 	youth agricultural education or urban 
600.6 	agriculture community development;
600.7 	(8) $1,000,000 the second year is for the good 
600.8 	food access program under Minnesota 
600.9 	Statutes, section 17.1017; and
600.10 	(9) $225,000 the second year is for the 
600.11 	protecting livestock grant program for 
600.12 	producers to support the installation of 
600.13 	measures to prevent the transmission of avian 
600.14 	influenza. For the appropriation in this 
600.15 	paragraph, a grant applicant must document 
600.16 	a cost-share of 20 percent. An applicant's 
600.17 	cost-share amount may be reduced up to 
600.18 	$2,000 to cover time and labor costs. 
600.19 	Notwithstanding Minnesota Statutes, section 
600.20 	16B.98, subdivision 14, the commissioner may 
600.21 	use up to 6.5 percent of this appropriation for 
600.22 	administrative costs. This appropriation is 
600.23 	available until June 30, 2027. This is a onetime 
600.24 	appropriation. Notwithstanding Minnesota 
600.25 	Statutes, section 16A.28, this appropriation 
600.26 	does not cancel at the end of the second year 
600.27 	and is available until June 30, 2027. 
600.28 	Appropriations encumbered under contract on 
600.29 	or before June 30, 2027, for agricultural 
600.30 	growth, research, and innovation grants are 
600.31 	available until June 30, 2030.
600.32 	(d) (e) The base for the agricultural growth, 
600.33 	research, and innovation program is 
600.34 	$16,294,000 $17,582,000 in fiscal year 2026 
601.1 	and each year thereafter and includes $200,000 
601.2 	each year for cooperative development grants.

601.3
601.4	Subd. 5.Administration and Financial 
Assistance
 		16,618,000
16,643,000
		14,287,000
14,587,000
	
601.5 	(a) $474,000 the first year and $474,000 the 
601.6 	second year are for payments to county and 
601.7 	district agricultural societies and associations 
601.8 	under Minnesota Statutes, section 38.02, 
601.9 	subdivision 1. Aid payments to county and 
601.10 	district agricultural societies and associations 
601.11 	must be disbursed no later than July 15 of each 
601.12 	year. These payments are the amount of aid 
601.13 	from the state for an annual fair held in the 
601.14 	previous calendar year.
601.15 	(b) $350,000 the first year and $350,000 the 
601.16 	second year are for grants to the Minnesota 
601.17 	Agricultural Education and Leadership 
601.18 	Council for programs of the council under 
601.19 	Minnesota Statutes, chapter 41D. The base for 
601.20 	this appropriation is $250,000 in fiscal year 
601.21 	2026 and each year thereafter.
601.22 	(c) $2,000 the first year is for a grant to the 
601.23 	Minnesota State Poultry Association. This is 
601.24 	a onetime appropriation. Notwithstanding 
601.25 	Minnesota Statutes, section 16A.28, any 
601.26 	unencumbered balance does not cancel at the 
601.27 	end of the first year and is available for the 
601.28 	second year.
601.29 	(d) $18,000 the first year and $18,000 the 
601.30 	second year are for grants to the Minnesota 
601.31 	Livestock Breeders Association. This is a 
601.32 	onetime appropriation.
601.33 	(e) $60,000 the first year and $60,000 the 
601.34 	second year are for grants to the Northern 
602.1 	Crops Institute that may be used to purchase 
602.2 	equipment. This is a onetime appropriation.
602.3 	(f) $34,000 the first year and $34,000 the 
602.4 	second year are for grants to the Minnesota 
602.5 	State Horticultural Society. This is a onetime 
602.6 	appropriation.
602.7 	(g) $25,000 the first year and $25,000 the 
602.8 	second year are for grants to the Center for 
602.9 	Rural Policy and Development. This is a 
602.10 	onetime appropriation.
602.11 	(h) $75,000 the first year and $75,000 the 
602.12 	second year are appropriated from the general 
602.13 	fund to the commissioner of agriculture for 
602.14 	grants to the Minnesota Turf Seed Council for 
602.15 	basic and applied research on: (1) the 
602.16 	improved production of forage and turf seed 
602.17 	related to new and improved varieties; and (2) 
602.18 	native plants, including plant breeding, 
602.19 	nutrient management, pest management, 
602.20 	disease management, yield, and viability. The 
602.21 	Minnesota Turf Seed Council may subcontract 
602.22 	with a qualified third party for some or all of 
602.23 	the basic or applied research. Any 
602.24 	unencumbered balance does not cancel at the 
602.25 	end of the first year and is available in the 
602.26 	second year. The Minnesota Turf Seed Council 
602.27 	must prepare a report outlining the use of the 
602.28 	grant money and related accomplishments. No 
602.29 	later than January 15, 2025, the council must 
602.30 	submit the report to the chairs and ranking 
602.31 	minority members of the legislative 
602.32 	committees and divisions with jurisdiction 
602.33 	over agriculture finance and policy. This is a 
602.34 	onetime appropriation.
603.1 	(i) $100,000 the first year and $100,000 the 
603.2 	second year are for grants to GreenSeam for 
603.3 	assistance to agriculture-related businesses to 
603.4 	support business retention and development, 
603.5 	business attraction and creation, talent 
603.6 	development and attraction, and regional 
603.7 	branding and promotion. These are onetime 
603.8 	appropriations. No later than December 1, 
603.9 	2024, and December 1, 2025, GreenSeam 
603.10 	must report to the chairs and ranking minority 
603.11 	members of the legislative committees with 
603.12 	jurisdiction over agriculture and rural 
603.13 	development with information on new and 
603.14 	existing businesses supported, number of new 
603.15 	jobs created in the region, new educational 
603.16 	partnerships and programs supported, and 
603.17 	regional branding and promotional efforts.
603.18 	(j) $1,950,000 the first year and $1,950,000 
603.19 	the second year are for grants to Second 
603.20 	Harvest Heartland on behalf of Minnesota's 
603.21 	six Feeding America food banks for the 
603.22 	following purposes:
603.23 	(1) at least $850,000 each year must be 
603.24 	allocated to purchase milk for distribution to 
603.25 	Minnesota's food shelves and other charitable 
603.26 	organizations that are eligible to receive food 
603.27 	from the food banks. Milk purchased under 
603.28 	the grants must be acquired from Minnesota 
603.29 	milk processors and based on low-cost bids. 
603.30 	The milk must be allocated to each Feeding 
603.31 	America food bank serving Minnesota 
603.32 	according to the formula used in the 
603.33 	distribution of United States Department of 
603.34 	Agriculture commodities under The 
603.35 	Emergency Food Assistance Program. Second 
604.1 	Harvest Heartland may enter into contracts or 
604.2 	agreements with food banks for shared funding 
604.3 	or reimbursement of the direct purchase of 
604.4 	milk. Each food bank that receives funding 
604.5 	under this clause may use up to two percent 
604.6 	for administrative expenses. Notwithstanding 
604.7 	Minnesota Statutes, section 16A.28, any 
604.8 	unencumbered balance the first year does not 
604.9 	cancel and is available the second year;
604.10 	(2) to compensate agricultural producers and 
604.11 	processors for costs incurred to harvest and 
604.12 	package for transfer surplus fruits, vegetables, 
604.13 	and other agricultural commodities that would 
604.14 	otherwise go unharvested, be discarded, or be 
604.15 	sold in a secondary market. Surplus 
604.16 	commodities must be distributed statewide to 
604.17 	food shelves and other charitable organizations 
604.18 	that are eligible to receive food from the food 
604.19 	banks. Surplus food acquired under this clause 
604.20 	must be from Minnesota producers and 
604.21 	processors. Second Harvest Heartland may 
604.22 	use up to 15 percent of each grant awarded 
604.23 	under this clause for administrative and 
604.24 	transportation expenses; and
604.25 	(3) to purchase and distribute protein products, 
604.26 	including but not limited to pork, poultry, beef, 
604.27 	dry legumes, cheese, and eggs to Minnesota's 
604.28 	food shelves and other charitable organizations 
604.29 	that are eligible to receive food from the food 
604.30 	banks. Second Harvest Heartland may use up 
604.31 	to two percent of each grant awarded under 
604.32 	this clause for administrative expenses. Protein 
604.33 	products purchased under the grants must be 
604.34 	acquired from Minnesota processors and 
604.35 	producers.
605.1 	Second Harvest Heartland must submit 
605.2 	quarterly reports to the commissioner and the 
605.3 	chairs and ranking minority members of the 
605.4 	legislative committees with jurisdiction over 
605.5 	agriculture finance in the form prescribed by 
605.6 	the commissioner. The reports must include 
605.7 	but are not limited to information on the 
605.8 	expenditure of funds, the amount of milk or 
605.9 	other commodities purchased, and the 
605.10 	organizations to which this food was 
605.11 	distributed. The base for this appropriation is 
605.12 	$1,700,000 for fiscal year 2026 and each year 
605.13 	thereafter.
605.14 	(k) $25,000 the first year and $25,000 the 
605.15 	second year are for grants to the Southern 
605.16 	Minnesota Initiative Foundation to promote 
605.17 	local foods through an annual event that raises 
605.18 	public awareness of local foods and connects 
605.19 	local food producers and processors with 
605.20 	potential buyers.
605.21 	(l) $300,000 the first year and $300,000 the 
605.22 	second year are for grants to The Good Acre 
605.23 	for the Local Emergency Assistance Farmer 
605.24 	Fund (LEAFF) program to compensate 
605.25 	emerging farmers for crops donated to hunger 
605.26 	relief organizations in Minnesota. This is a 
605.27 	onetime appropriation.
605.28 	(m) $750,000 the first year and $750,000 the 
605.29 	second year are to expand the Emerging 
605.30 	Farmers Office and provide services to 
605.31 	beginning and emerging farmers to increase 
605.32 	connections between farmers and market 
605.33 	opportunities throughout the state. This 
605.34 	appropriation may be used for grants, 
605.35 	translation services, training programs, or 
606.1 	other purposes in line with the 
606.2 	recommendations of the Emerging Farmer 
606.3 	Working Group established under Minnesota 
606.4 	Statutes, section 17.055, subdivision 1. The 
606.5 	base for this appropriation is $1,000,000 in 
606.6 	fiscal year 2026 and each year thereafter.
606.7 	(n) $50,000 the first year is to provide 
606.8 	technical assistance and leadership in the 
606.9 	development of a comprehensive and 
606.10 	well-documented state aquaculture plan. The 
606.11 	commissioner must provide the state 
606.12 	aquaculture plan to the legislative committees 
606.13 	with jurisdiction over agriculture finance and 
606.14 	policy by February 15, 2025.
606.15 	(o) $337,000 the first year and $337,000 the 
606.16 	second year are for farm advocate services. 
606.17 	Of these amounts, $50,000 the first year and 
606.18 	$50,000 the second year are for the 
606.19 	continuation of the farmland transition 
606.20 	programs and may be used for grants to 
606.21 	farmland access teams to provide technical 
606.22 	assistance to potential beginning farmers. 
606.23 	Farmland access teams must assist existing 
606.24 	farmers and beginning farmers with 
606.25 	transitioning farm ownership and farm 
606.26 	operation. Services provided by teams may 
606.27 	include but are not limited to mediation 
606.28 	assistance, designing contracts, financial 
606.29 	planning, tax preparation, estate planning, and 
606.30 	housing assistance.
606.31 	(p) $260,000 the first year and $260,000 the 
606.32 	second year are for a pass-through grant to 
606.33 	Region Five Development Commission to 
606.34 	provide, in collaboration with Farm Business 
606.35 	Management, statewide mental health 
607.1 	counseling support to Minnesota farm 
607.2 	operators, families, and employees, and 
607.3 	individuals who work with Minnesota farmers 
607.4 	in a professional capacity. Region Five 
607.5 	Development Commission may use up to 6.5 
607.6 	percent of the grant awarded under this 
607.7 	paragraph for administration.
607.8 	(q) $1,000,000 the first year is for transfer to 
607.9 	the agricultural emergency account established 
607.10 	under Minnesota Statutes, section 17.041.
607.11 	(r) $1,084,000 the first year and $500,000 the 
607.12 	second year are to support IT modernization 
607.13 	efforts, including laying the technology 
607.14 	foundations needed for improving customer 
607.15 	interactions with the department for licensing 
607.16 	and payments. This is a onetime appropriation.
607.17 	(s) $275,000 the first year is for technical 
607.18 	assistance grants to certified community 
607.19 	development financial institutions that 
607.20 	participate in United States Department of 
607.21 	Agriculture loan or grant programs for small 
607.22 	or emerging farmers, including but not limited 
607.23 	to the Increasing Land, Capital, and Market 
607.24 	Access Program. For purposes of this 
607.25 	paragraph, "emerging farmer" has the meaning 
607.26 	given in Minnesota Statutes, section 17.055, 
607.27 	subdivision 1. The commissioner may use up 
607.28 	to 6.5 percent of this appropriation for costs 
607.29 	incurred to administer the program. 
607.30 	Notwithstanding Minnesota Statutes, section 
607.31 	16A.28, any unencumbered balance does not 
607.32 	cancel at the end of the first year and is 
607.33 	available in the second year. This is a onetime 
607.34 	appropriation.
608.1 	(t) $1,425,000 the first year and $1,425,000 
608.2 	the second year are for transfer to the 
608.3 	agricultural and environmental revolving loan 
608.4 	account established under Minnesota Statutes, 
608.5 	section 17.117, subdivision 5a, for low-interest 
608.6 	loans under Minnesota Statutes, section 
608.7 	17.117.
608.8 	(u) $150,000 the first year and $150,000 the 
608.9 	second year are for administrative support for 
608.10 	the Rural Finance Authority.
608.11 	(v) The base in fiscal years 2026 and 2027 is 
608.12 	$150,000 each year to coordinate 
608.13 	climate-related activities and services within 
608.14 	the Department of Agriculture and 
608.15 	counterparts in local, state, and federal 
608.16 	agencies and to hire a full-time climate 
608.17 	implementation coordinator. The climate 
608.18 	implementation coordinator must coordinate 
608.19 	efforts seeking federal funding for Minnesota's 
608.20 	agricultural climate adaptation and mitigation 
608.21 	efforts and develop strategic partnerships with 
608.22 	the private sector and nongovernment 
608.23 	organizations.
608.24 	(w) $1,200,000 the first year and $930,000 the 
608.25 	second year are to maintain the current level 
608.26 	of service delivery. The base for this 
608.27 	appropriation is $1,085,000 $1,065,000 in 
608.28 	fiscal year 2026 and $1,085,000 $1,065,000
608.29 	in fiscal year 2027 and each year thereafter.
608.30 	(x) $250,000 the first year is for a grant to the 
608.31 	Board of Regents of the University of 
608.32 	Minnesota to purchase equipment for the 
608.33 	Veterinary Diagnostic Laboratory to test for 
608.34 	chronic wasting disease, African swine fever, 
608.35 	avian influenza, and other animal diseases. 
609.1 	The Veterinary Diagnostic Laboratory must 
609.2 	report expenditures under this paragraph to 
609.3 	the legislative committees with jurisdiction 
609.4 	over agriculture finance and higher education 
609.5 	with a report submitted by January 3, 2024, 
609.6 	and a final report submitted by December 31, 
609.7 	2024. The reports must include a list of 
609.8 	equipment purchased, including the cost of 
609.9 	each item.
609.10 	(y) $1,000,000 the first year and $1,000,000 
609.11 	the second year are to award and administer 
609.12 	down payment assistance grants under 
609.13 	Minnesota Statutes, section 17.133, with 
609.14 	priority given to emerging farmers as defined 
609.15 	in Minnesota Statutes, section 17.055, 
609.16 	subdivision 1 eligible applicants with no more 
609.17 	than $100,000 in annual gross farm product 
609.18 	sales and eligible applicants who are producers 
609.19 	of industrial hemp, cannabis, or one or more 
609.20 	of the following specialty crops as defined by 
609.21 	the United States Department of Agriculture 
609.22 	for purposes of the specialty crop block grant 
609.23 	program: fruits and vegetables, tree nuts, dried 
609.24 	fruits, medicinal plants, culinary herbs and 
609.25 	spices, horticulture crops, floriculture crops, 
609.26 	and nursery crops. Notwithstanding Minnesota 
609.27 	Statutes, section 16A.28, any unencumbered 
609.28 	balance at the end of the first year does not 
609.29 	cancel and is available in the second year and 
609.30 	appropriations encumbered under contract by 
609.31 	June 30, 2025, are available until June 30, 
609.32 	2027.
609.33 	(z) $222,000 the first year and $322,000 the 
609.34 	second year are for meat processing training 
609.35 	and retention incentive grants under section 
610.1 	5. The commissioner may use up to 6.5 
610.2 	percent of this appropriation for costs incurred 
610.3 	to administer the program. Notwithstanding 
610.4 	Minnesota Statutes, section 16A.28, any 
610.5 	unencumbered balance does not cancel at the 
610.6 	end of the first year and is available in the 
610.7 	second year. This is a onetime appropriation.
610.8 	(aa) $300,000 the first year and $300,000 the 
610.9 	second year are for transfer to the Board of 
610.10 	Regents of the University of Minnesota to 
610.11 	evaluate, propagate, and maintain the genetic 
610.12 	diversity of oilseeds, grains, grasses, legumes, 
610.13 	and other plants including flax, timothy, 
610.14 	barley, rye, triticale, alfalfa, orchard grass, 
610.15 	clover, and other species and varieties that 
610.16 	were in commercial distribution and use in 
610.17 	Minnesota before 1970, excluding wild rice. 
610.18 	This effort must also protect traditional seeds 
610.19 	brought to Minnesota by immigrant 
610.20 	communities. This appropriation includes 
610.21 	funding for associated extension and outreach 
610.22 	to small and Black, Indigenous, and People of 
610.23 	Color (BIPOC) farmers. This is a onetime 
610.24 	appropriation.
610.25 	(bb) $300,000 the second year is to award and 
610.26 	administer beginning farmer equipment and 
610.27 	infrastructure grants under Minnesota Statutes, 
610.28 	section 17.055. This is a onetime 
610.29 	appropriation.
610.30 	(cc) $25,000 the first year is for the credit 
610.31 	market report. Notwithstanding Minnesota 
610.32 	Statutes, section 16A.28, any unencumbered 
610.33 	balance does not cancel at the end of the first 
610.34 	year and is available in the second year. This 
610.35 	is a onetime appropriation.
611.1 	(bb) (dd) The commissioner shall continue to 
611.2 	increase connections with ethnic minority and 
611.3 	immigrant farmers to farming opportunities 
611.4 	and farming programs throughout the state.

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

611.6 	Sec. 2. Laws 2023, chapter 43, article 1, section 4, is amended to read:

611.7
611.8	Sec. 4. AGRICULTURAL UTILIZATION 
RESEARCH INSTITUTE
 	$
	6,143,000
6,368,000
	$
	4,343,000
	
611.9 	(a) $300,000 the first year is for equipment 
611.10 	upgrades, equipment replacement, installation 
611.11 	expenses, and laboratory infrastructure at the 
611.12 	Agricultural Utilization Research Institute's 
611.13 	laboratories in the cities of Crookston, 
611.14 	Marshall, and Waseca.
611.15 	(b) $1,500,000 the first year is to replace 
611.16 	analytical and processing equipment and make 
611.17 	corresponding facility upgrades at Agricultural 
611.18 	Utilization Research Institute facilities in the 
611.19 	cities of Marshall, Crookston, and Waseca. Of 
611.20 	this amount, up to $500,000 may be used for 
611.21 	renewable natural gas and anaerobic digestion 
611.22 	projects. This is a onetime appropriation and 
611.23 	is available until June 30, 2026.
611.24 	(c) $300,000 the first year and $300,000 the 
611.25 	second year are to maintain the current level 
611.26 	of service delivery.
611.27 	(d) $225,000 the first year is to support food 
611.28 	businesses. This is a onetime appropriation 
611.29 	and is available until June 30, 2026.

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

612.1 	ARTICLE 38
612.2 	AGRICULTURE POLICY

612.3 	Section 1. Minnesota Statutes 2022, section 3.7371, is amended by adding a subdivision 
612.4 	to read:
612.5 		Subd. 1a.Definitions. (a) For purposes of this section, the following terms have the 
612.6 	meanings given.
612.7 	(b) "Approved agent" means a person authorized by the Department of Agriculture to 
612.8 	determine if crop or fence damage was caused by elk and to assign a monetary value to the 
612.9 	crop or fence damage.
612.10 	(c) "Commissioner" means the commissioner of agriculture or the commissioner's 
612.11 	authorized representative.
612.12 	(d) "Estimated value" means the current value of crops or fencing as determined by an 
612.13 	approved agent.
612.14 	(e) "Owner" means an individual, firm, corporation, copartnership, or association with 
612.15 	an interest in crops or fencing damaged by elk.

612.16 	Sec. 2. Minnesota Statutes 2022, section 3.7371, subdivision 2, is amended to read:
612.17 		Subd. 2.Claim form and reporting. (a) The owner must prepare a claim on forms 
612.18 	provided by the commissioner and available on the Department of Agriculture's Agriculture
612.19 	website or by request from the commissioner. The claim form must be filed with the 
612.20 	commissioner.
612.21 	(b) After discovering crop or fence damage suspected to be caused by elk, an owner 
612.22 	must promptly notify an approved agent of the damage. To submit a claim for crop or fence 
612.23 	damage caused by elk, an owner must complete the required portions of the claim form 
612.24 	provided by the commissioner. An owner who has submitted a claim must provide an 
612.25 	approved agent with all information required to investigate the crop or fence damage.

612.26 	Sec. 3. Minnesota Statutes 2022, section 3.7371, is amended by adding a subdivision to 
612.27 	read:
612.28 		Subd. 2a.Investigation and crop valuation. (a) Upon receiving notification of crop or 
612.29 	fence damage suspected to be caused by elk, an approved agent must promptly investigate 
612.30 	the damage in a timely manner. An approved agent must make written findings on the claim 
613.1 	form regarding whether the crop or fence was destroyed or damaged by elk. The approved 
613.2 	agent's findings must be based on physical and circumstantial evidence, including:
613.3 	(1) the condition of the crop or fence;
613.4 	(2) the presence of elk tracks;
613.5 	(3) the geographic area of the state where the crop or fence damage occurred;
613.6 	(4) any sightings of elk in the area; and
613.7 	(5) any other circumstances that the approved agent considers to be relevant.
613.8 	(b) The absence of affirmative evidence may be grounds for denial of a claim.
613.9 	(c) On a claim form, an approved agent must make written findings of the extent of crop 
613.10 	or fence damage and, if applicable, the amount of crop destroyed.
613.11 	(d) For damage to standing crops, an owner may choose to have the approved agent use 
613.12 	the method in clause (1) or (2) to complete the claim form and determine the amount of 
613.13 	crop loss:
613.14 	(1) to submit a claim form to the commissioner at the time that the suspected elk damage 
613.15 	is discovered, the approved agent must record on the claim form: (i) the field's potential 
613.16 	yield per acre; (ii) the field's average yield per acre that is expected on the damaged acres; 
613.17 	(iii) the estimated value of the crop; and (iv) the total amount of loss. Upon completing the 
613.18 	claim form, the approved agent must submit the form to the commissioner; or
613.19 	(2) to submit a claim form to the commissioner at the time that the crop is harvested, 
613.20 	the approved agent must record on the claim form at the time of the investigation: (i) the 
613.21 	percent of crop loss from damage; (ii) the actual yield of the damaged field when the crop 
613.22 	is harvested; (iii) the estimated value of the crop; and (iv) the total amount of loss. Upon 
613.23 	completing the claim form, the approved agent must submit the form to the commissioner.
613.24 	(e) For damage to stored crops, an approved agent must record on the claim form: (1) 
613.25 	the type and volume of destroyed stored crops; (2) the estimated value of the crop; and (3) 
613.26 	the total amount of loss.
613.27 	(f) For damage to fencing, an approved agent must record on the claim form: (1) the 
613.28 	type of materials damaged; (2) the linear feet of the damage; (3) the value of the materials 
613.29 	per unit according to National Resource Conservation Service specifications; and (4) the 
613.30 	calculated total damage to the fence.

614.1 	Sec. 4. Minnesota Statutes 2022, section 3.7371, is amended by adding a subdivision to 
614.2 	read:
614.3 		Subd. 2b.Claim form. A completed claim form must be signed by the owner and an 
614.4 	approved agent. An approved agent must submit the claim form to the commissioner for 
614.5 	the commissioner's review and payment. The commissioner must return an incomplete claim 
614.6 	form to the approved agent. When returning an incomplete claim form to an approved agent, 
614.7 	the commissioner must indicate which information is missing from the claim form.

614.8 	Sec. 5. Minnesota Statutes 2022, section 3.7371, subdivision 3, is amended to read:
614.9 		Subd. 3.Compensation. (a) The crop An owner is entitled to the target price or the 
614.10 	market price, whichever is greater, estimated value of the damaged or destroyed crop plus 
614.11 	adjustments for yield loss determined according to agricultural stabilization and conservation 
614.12 	service programs for individual farms, adjusted annually, as determined by the commissioner, 
614.13 	upon recommendation of the commissioner's approved agent for the owner's county or 
614.14 	fence. Verification of crop or fence damage or destruction by elk may be provided by 
614.15 	submitting photographs or other evidence and documentation together with a statement 
614.16 	from an independent witness using forms prescribed by the commissioner. The commissioner, 
614.17 	upon recommendation of the commissioner's approved agent, shall determine whether the 
614.18 	crop damage or destruction or damage to or destruction of a fence surrounding a crop or 
614.19 	pasture is caused by elk and, if so, the amount of the crop or fence that is damaged or 
614.20 	destroyed. In any fiscal year, an owner may not be compensated for a damaged or destroyed 
614.21 	crop or fence surrounding a crop or pasture that is less than $100 in value and may be 
614.22 	compensated up to $20,000, as determined under this section, if normal harvest procedures 
614.23 	for the area are followed. An owner may not be compensated more than $1,800 per fiscal 
614.24 	year for damage to fencing surrounding a crop or pasture.
614.25 	(b) In any fiscal year, the commissioner may provide compensation for claims filed 
614.26 	under this section up to the amount expressly appropriated for this purpose.

614.27 	Sec. 6. Minnesota Statutes 2023 Supplement, section 17.055, subdivision 3, is amended 
614.28 	to read:
614.29 		Subd. 3.Beginning farmer equipment and infrastructure grants. (a) The commissioner 
614.30 	may award and administer equipment and infrastructure grants to beginning farmers. The 
614.31 	commissioner shall give preference to applicants who are emerging farmers experiencing 
614.32 	limited land access or limited market access as those terms are defined in section 17.133, 
614.33 	subdivision 1. Grant money may be used for equipment and infrastructure development.
615.1 	(b) The commissioner shall develop competitive eligibility criteria and may allocate 
615.2 	grants on a needs basis.
615.3 	(c) Grant projects may continue for up to two years.

615.4 	Sec. 7. Minnesota Statutes 2022, section 17.116, subdivision 2, is amended to read:
615.5 		Subd. 2.Eligibility. (a) Grants may only be made to farmers,and organizations such as 
615.6 	farms, agricultural cooperatives, educational institutions, individuals at educational 
615.7 	institutions, or nonprofit organizations, Tribal governments, or local units of government
615.8 	residing or located in the state for research or demonstrations on farms in the state.
615.9 	(b) Grants may only be made for projects that show:
615.10 	(1) the ability to maximize direct or indirect energy savings or production;
615.11 	(2) a positive effect or reduced adverse effect on the environment; or
615.12 	(3) increased profitability for the individual farm by reducing costs or improving 
615.13 	marketing opportunities.

615.14 	Sec. 8. Minnesota Statutes 2022, section 17.133, subdivision 1, is amended to read:
615.15 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
615.16 	the meanings given.
615.17 	(b) "Eligible farmer" means an individual who at the time that the grant is awarded:
615.18 	(1) is a resident of Minnesota who intends to acquire farmland located within the state 
615.19 	and provide the majority of the day-to-day physical labor and management of the farm;
615.20 	(2) grosses no more than $250,000 per year from the sale of farm products; and
615.21 	(3) has not, and whose spouse has not, at any time had a direct or indirect ownership 
615.22 	interest in farmland; and
615.23 	(4) is not, and whose spouse is not, related by blood or marriage to an owner of the 
615.24 	farmland that the individual intends to acquire.
615.25 	(c) "Farm down payment" means an initial, partial payment required by a lender or seller 
615.26 	to purchase farmland.
615.27 	(d) "Incubator farm" means a farm where:
616.1 	(1) individuals are given temporary, exclusive, and affordable access to small parcels 
616.2 	of land, infrastructure, and often training, for the purpose of honing skills and launching a 
616.3 	farm business; and
616.4 	(2) a majority of the individuals farming the small parcels of land grow industrial hemp, 
616.5 	cannabis, or one or more of the following specialty crops as defined by the United States 
616.6 	Department of Agriculture for purposes of the specialty crop block grant program: fruits 
616.7 	and vegetables, tree nuts, dried fruits, medicinal plants, culinary herbs and spices, horticulture 
616.8 	crops, floriculture crops, and nursery crops.
616.9 	(e) "Limited land access" means farming without ownership of land and:
616.10 	(1) the individual or the individual's child rents or leases the land, with the term of each 
616.11 	rental or lease agreement not exceeding three years in duration, from a person who is not 
616.12 	related to the individual or the individual's spouse by blood or marriage; or
616.13 	(2) the individual rents the land from an incubator farm.
616.14 	(f) "Limited market access" means the individual has gross sales of no more than 
616.15 	$100,000 per year from the sale of farm products.

616.16 	Sec. 9. Minnesota Statutes 2023 Supplement, section 17.133, subdivision 3, is amended 
616.17 	to read:
616.18 		Subd. 3.Report to legislature. No later than December 1, 2023, and annually thereafter, 
616.19 	the commissioner must provide a report to the chairs and ranking minority members of the 
616.20 	legislative committees having jurisdiction over agriculture and rural development, in 
616.21 	compliance with sections 3.195 and 3.197, on the farm down payment assistance grants 
616.22 	under this section. The report must include:
616.23 	(1) background information on beginning farmers in Minnesota and any other information 
616.24 	that the commissioner and authority find relevant to evaluating the effect of the grants on 
616.25 	increasing opportunities for and the number of beginning farmers;
616.26 	(2) the number and amount of grants;
616.27 	(3) the geographic distribution of grants by county;
616.28 	(4) the number of grant recipients who are emerging farmers;
616.29 	(5) the number of grant recipients who were experiencing limited land access or limited 
616.30 	market access when the grant was awarded;
616.31 	(5) (6) disaggregated data regarding the gender, race, and ethnicity of grant recipients;
617.1 	(6) (7) the number of farmers who cease to own land and are subject to payment of a 
617.2 	penalty, along with the reasons for the land ownership cessation; and
617.3 	(7) (8) the number and amount of grant applications that exceeded the allocation available 
617.4 	in each year.

617.5 	Sec. 10. Minnesota Statutes 2023 Supplement, section 17.134, subdivision 3, is amended 
617.6 	to read:
617.7 		Subd. 3.Grant eligibility. Any owner or lessee of farmland may apply for a grant under 
617.8 	this section. The commissioner must give preference to owners and lessees that have not 
617.9 	previously implemented an eligible project and owners and lessees that are certified or 
617.10 	assessed and pursuing certification under sections 17.9891 to 17.993. Local government 
617.11 	units, including cities; towns; counties; soil and water conservation districts; Minnesota 
617.12 	Tribal governments as defined in section 10.65; and joint powers boards, are also eligible 
617.13 	for a grant. A local government unit that receives a grant for equipment or technology must 
617.14 	make those purchases available for use by the public.

617.15 	Sec. 11. Minnesota Statutes 2023 Supplement, section 17.134, is amended by adding a 
617.16 	subdivision to read:
617.17 		Subd. 3a.Equipment sales limitation. In addition to the applicable grants management 
617.18 	requirements imposed under sections 16B.97 to 16B.991, an owner or lessee that receives 
617.19 	a grant under this section to purchase equipment must certify to the commissioner that the 
617.20 	owner or lessee will not sell the equipment for at least ten years.

617.21 	Sec. 12. Minnesota Statutes 2023 Supplement, section 17.710, is amended to read:
617.22 	17.710 AGRICULTURAL CONTRACTS.
617.23 	(a) A production or marketing contract entered into, renewed, or amended on or after 
617.24 	July 1, 1999 2024, between an agricultural producer and a processor, marketer, or other 
617.25 	purchaser of agricultural products, including a cooperative organized under chapter 308A 
617.26 	or 308B must not contain provisions that prohibit the producer from disclosing terms, 
617.27 	conditions, and prices contained in the contract. Any provision prohibiting disclosure by 
617.28 	the producer is void.
617.29 	(b) A contract entered into, renewed, or amended on or after July 1, 2023, between an 
617.30 	agricultural producer and an entity buying, selling, certifying, or otherwise participating in 
617.31 	a market for stored carbon must not contain provisions that prohibit the producer from 
618.1 	disclosing terms, conditions, and prices contained in the contract. Any provision prohibiting 
618.2 	disclosure by the producer is void.

618.3 	EFFECTIVE DATE. This section is effective July 1, 2024.

618.4 	Sec. 13. Minnesota Statutes 2022, section 18B.01, is amended by adding a subdivision to 
618.5 	read:
618.6 		Subd. 1d.Application or use of a pesticide. "Application or use of a pesticide" includes:
618.7 	(1) the dispersal of a pesticide on, in, at, or directed toward a target site;
618.8 	(2) preapplication activities that involve the mixing and loading of a restricted use 
618.9 	pesticide; and
618.10 	(3) other restricted use pesticide-related activities, including but not limited to transporting 
618.11 	or storing pesticide containers that have been opened; cleaning equipment; and disposing 
618.12 	of excess pesticides, spray mix, equipment wash waters, pesticide containers, and other 
618.13 	materials that contain pesticide.

618.14 	Sec. 14. Minnesota Statutes 2022, section 18B.26, subdivision 6, is amended to read:
618.15 		Subd. 6.Discontinuance or cancellation of registration. (a) To ensure the complete 
618.16 	withdrawal from distribution or further use of a pesticide, a person who intends to discontinue 
618.17 	a pesticide registration must:
618.18 	(1) terminate a further distribution within the state and continue to register the pesticide 
618.19 	annually for two successive years; and
618.20 	(2) initiate and complete a total recall of the pesticide from all distribution in the state 
618.21 	within 60 days from the date of notification to the commissioner of intent to discontinue 
618.22 	registration; or.
618.23 	(3) submit to the commissioner evidence adequate to document that no distribution of 
618.24 	the registered pesticide has occurred in the state.
618.25 	(b) Upon the request of a registrant, the commissioner may immediately cancel 
618.26 	registration of a pesticide product. The commissioner may immediately cancel registration 
618.27 	of a pesticide product at the commissioner's discretion. When requesting that the 
618.28 	commissioner immediately cancel registration of a pesticide product, a registrant must 
618.29 	provide the commissioner with:
618.30 	(1) a statement that the pesticide product is no longer in distribution; and
619.1 	(2) documentation of pesticide gross sales from the previous year supporting the statement 
619.2 	under clause (1).

619.3 	Sec. 15. Minnesota Statutes 2022, section 18B.28, is amended by adding a subdivision to 
619.4 	read:
619.5 		Subd. 5.Advisory panel. Before approving the issuance of an experimental use pesticide 
619.6 	product registration under this section, the commissioner must convene and consider the 
619.7 	advice of a panel of outside scientific and health experts. The panel must include but is not 
619.8 	limited to representatives of the Department of Health, the Department of Natural Resources, 
619.9 	the Pollution Control Agency, and the University of Minnesota.

619.10 	Sec. 16. Minnesota Statutes 2022, section 18B.305, subdivision 2, is amended to read:
619.11 		Subd. 2.Training manual and examination development. The commissioner, in 
619.12 	consultation with University of Minnesota Extension and other higher education institutions, 
619.13 	shall continually revise and update pesticide applicator training manuals and examinations. 
619.14 	The manuals and examinations must be written to meet or exceed the minimum competency 
619.15 	standards required by the United States Environmental Protection Agency and pertinent 
619.16 	state specific information. Pesticide applicator training manuals and examinations must 
619.17 	meet or exceed the competency standards in Code of Federal Regulations, title 40, part 171. 
619.18 	Competency standards for training manuals and examinations must be published on the 
619.19 	Department of Agriculture website. Questions in the examinations must be determined by 
619.20 	the commissioner in consultation with other responsible agencies. Manuals and examinations 
619.21 	must include pesticide management practices that discuss prevention of pesticide occurrence 
619.22 	in groundwater and surface water of the state, and economic thresholds and guidance for 
619.23 	insecticide use.

619.24 	Sec. 17. Minnesota Statutes 2022, section 18B.32, subdivision 1, is amended to read:
619.25 		Subdivision 1.Requirement. (a) A person may not engage in structural pest control 
619.26 	applications:
619.27 	(1) for hire without a structural pest control license; and
619.28 	(2) as a sole proprietorship, company, partnership, or corporation unless the person is 
619.29 	or employs a licensed master in structural pest control operations.; and
619.30 	(3) unless the person is 18 years of age or older.
620.1 	(b) A structural pest control licensee must have a valid license identification card to 
620.2 	purchase a restricted use pesticide or apply pesticides for hire and must display it upon 
620.3 	demand by an authorized representative of the commissioner or a law enforcement officer. 
620.4 	The license identification card must contain information required by the commissioner.

620.5 	Sec. 18. Minnesota Statutes 2022, section 18B.32, subdivision 3, is amended to read:
620.6 		Subd. 3.Application. (a) A person must apply to the commissioner for a structural pest 
620.7 	control license on forms and in the manner required by the commissioner. The commissioner 
620.8 	shall require the applicant to pass a written, closed-book, monitored examination or oral 
620.9 	examination, or both, and may also require a practical demonstration regarding structural 
620.10 	pest control. The commissioner shall establish the examination procedure, including the 
620.11 	phases and contents of the examination.
620.12 	(b) The commissioner may license a person as a master under a structural pest control 
620.13 	license if the person has the necessary qualifications through knowledge and experience to 
620.14 	properly plan, determine, and supervise the selection and application of pesticides in structural 
620.15 	pest control. To demonstrate the qualifications and become licensed as a master under a 
620.16 	structural pest control license, a person must:
620.17 	(1) pass a closed-book test administered by the commissioner;
620.18 	(2) have direct experience as a licensed journeyman under a structural pest control license 
620.19 	for at least two years by this state or a state with equivalent certification requirements or as 
620.20 	a full-time licensed master in another state with equivalent certification requirements; and
620.21 	(3) show practical knowledge and field experience under clause (2) in the actual selection 
620.22 	and application of pesticides under varying conditions.
620.23 	(c) The commissioner may license a person as a journeyman under a structural pest 
620.24 	control license if the person:
620.25 	(1) has the necessary qualifications in the practical selection and application of pesticides;
620.26 	(2) has passed a closed-book examination given by the commissioner; and
620.27 	(3) is engaged as an employee of or is working under the direction of a person licensed 
620.28 	as a master under a structural pest control license.
620.29 	(d) The commissioner may license a person as a fumigator under a structural pest control 
620.30 	license if the person:
620.31 	(1) has knowledge of the practical selection and application of fumigants;
621.1 	(2) has passed a closed-book examination given by the commissioner; and
621.2 	(3) is licensed by the commissioner as a master or journeyman under a structural pest 
621.3 	control license.

621.4 	Sec. 19. Minnesota Statutes 2022, section 18B.32, subdivision 4, is amended to read:
621.5 		Subd. 4.Renewal. (a) An applicator may apply to renew a structural pest control 
621.6 	applicator license may be renewed on or before the expiration of an existing license subject 
621.7 	to reexamination, attendance at workshops a recertification workshop approved by the 
621.8 	commissioner, or other requirements imposed by the commissioner to provide the applicator 
621.9 	with information regarding changing technology and to help assure a continuing level of 
621.10 	competency and ability to use pesticides safely and properly. A recertification workshop 
621.11 	must meet or exceed the competency standards in Code of Federal Regulations, title 40, 
621.12 	part 171. Competency standards for a recertification workshop must be published on the 
621.13 	Department of Agriculture website. If the commissioner requires an applicator to attend a 
621.14 	recertification workshop and the applicator fails to attend the workshop, the commissioner 
621.15 	may require the applicator to pass a reexamination. The commissioner may require an 
621.16 	additional demonstration of applicator qualification if the applicator has had a license 
621.17 	suspended or revoked or has otherwise had a history of violations of this chapter.
621.18 	(b) If a person an applicator fails to renew a structural pest control license within three 
621.19 	months of its expiration, the person applicator must obtain a structural pest control license 
621.20 	subject to the requirements, procedures, and fees required for an initial license.

621.21 	Sec. 20. Minnesota Statutes 2022, section 18B.32, subdivision 5, is amended to read:
621.22 		Subd. 5.Financial responsibility. (a) A structural pest control license may not be issued 
621.23 	unless the applicant furnishes proof of financial responsibility. The commissioner may 
621.24 	suspend or revoke a structural pest control license if an applicator fails to provide proof of 
621.25 	financial responsibility upon the commissioner's request. Financial responsibility may be 
621.26 	demonstrated by:
621.27 	(1) proof of net assets equal to or greater than $50,000; or
621.28 	(2) a performance bond or insurance of a kind and in an amount determined by the 
621.29 	commissioner.
621.30 	(b) The bond or insurance must cover a period of time at least equal to the term of the 
621.31 	applicant's applicator's license. The commissioner must immediately suspend the license 
621.32 	of a person an applicator who fails to maintain the required bond or insurance. The 
622.1 	performance bond or insurance policy must contain a provision requiring the insurance or 
622.2 	bonding company to notify the commissioner by ten days before the effective date of 
622.3 	cancellation, termination, or any other change of the bond or insurance. If there is recovery 
622.4 	against the bond or insurance, additional coverage must be secured by the applicator to 
622.5 	maintain financial responsibility equal to the original amount required.
622.6 	(c) An employee of a licensed person is not required to maintain an insurance policy or 
622.7 	bond during the time the employer is maintaining the required insurance or bond.
622.8 	(d) Applications for reinstatement of a license suspended under the provisions of this 
622.9 	section must be accompanied by proof of satisfaction of judgments previously rendered.

622.10 	Sec. 21. Minnesota Statutes 2022, section 18B.33, subdivision 1, is amended to read:
622.11 		Subdivision 1.Requirement. (a) A person may not apply a pesticide for hire without a 
622.12 	commercial applicator license for the appropriate use categories or a structural pest control 
622.13 	license.
622.14 	(b) A commercial applicator licensee must have a valid license identification card to 
622.15 	purchase a restricted use pesticide or apply pesticides for hire and must display it upon 
622.16 	demand by an authorized representative of the commissioner or a law enforcement officer. 
622.17 	The commissioner shall prescribe the information required on the license identification 
622.18 	card.
622.19 	(c) A person licensed under this section is considered qualified and is not required to 
622.20 	verify, document, or otherwise prove a particular need prior to use, except as required by 
622.21 	the federal label.
622.22 	(d) A person who uses a general-use sanitizer or disinfectant for hire in response to 
622.23 	COVID-19 is exempt from the commercial applicator license requirements under this section.
622.24 	(e) A person licensed under this section must be 18 years of age or older.

622.25 	Sec. 22. Minnesota Statutes 2022, section 18B.33, subdivision 5, is amended to read:
622.26 		Subd. 5.Renewal application. (a) A person An applicator must apply to the 
622.27 	commissioner to renew a commercial applicator license. The commissioner may renew a 
622.28 	commercial applicator license accompanied by the application fee, subject to reexamination, 
622.29 	attendance at workshops a recertification workshop approved by the commissioner, or other 
622.30 	requirements imposed by the commissioner to provide the applicator with information 
622.31 	regarding changing technology and to help assure a continuing level of competence and 
622.32 	ability to use pesticides safely and properly. The applicant A recertification workshop must 
623.1 	meet or exceed the competency standards in Code of Federal Regulations, title 40, part 171. 
623.2 	Competency standards for a recertification workshop must be published on the Department 
623.3 	of Agriculture website. Upon the receipt of an applicator's renewal application, the 
623.4 	commissioner may require the applicator to attend a recertification workshop. Depending 
623.5 	on the application category, the commissioner may require an applicator to complete a 
623.6 	recertification workshop once per year, once every two years, or once every three years. If 
623.7 	the commissioner requires an applicator to attend a recertification workshop and the 
623.8 	applicator fails to attend the workshop, the commissioner may require the applicator to pass 
623.9 	a reexamination. An applicator may renew a commercial applicator license within 12 months 
623.10 	after expiration of the license without having to meet initial testing requirements. The 
623.11 	commissioner may require an additional demonstration of applicator qualification if a person
623.12 	the applicator has had a license suspended or revoked or has had a history of violations of 
623.13 	this chapter.
623.14 	(b) An applicantapplicator that meets renewal requirements by reexamination instead 
623.15 	of attending workshops a recertification workshop must pay the equivalent workshop fee 
623.16 	for the reexamination as determined by the commissioner.

623.17 	Sec. 23. Minnesota Statutes 2022, section 18B.33, subdivision 6, is amended to read:
623.18 		Subd. 6.Financial responsibility. (a) A commercial applicator license may not be issued 
623.19 	unless the applicant furnishes proof of financial responsibility. The commissioner may 
623.20 	suspend or revoke an applicator's commercial applicator license if the applicator fails to 
623.21 	provide proof of financial responsibility upon the commissioner's request. Financial 
623.22 	responsibility may be demonstrated by: (1) proof of net assets equal to or greater than 
623.23 	$50,000; or (2) by a performance bond or insurance of the kind and in an amount determined 
623.24 	by the commissioner.
623.25 	(b) The bond or insurance must cover a period of time at least equal to the term of the 
623.26 	applicant's applicator's license. The commissioner must immediately suspend the license 
623.27 	of a person an applicator who fails to maintain the required bond or insurance. The 
623.28 	performance bond or insurance policy must contain a provision requiring the insurance or 
623.29 	bonding company to notify the commissioner by ten days before the effective date of 
623.30 	cancellation, termination, or any other change of the bond or insurance. If there is recovery 
623.31 	against the bond or insurance, additional coverage must be secured by the applicator to 
623.32 	maintain financial responsibility equal to the original amount required.
623.33 	(c) An employee of a licensed person applicator is not required to maintain an insurance 
623.34 	policy or bond during the time the employer is maintaining the required insurance or bond.
624.1 	(d) Applications for reinstatement of a license suspended under the provisions of this 
624.2 	section must be accompanied by proof of satisfaction of judgments previously rendered.

624.3 	Sec. 24. Minnesota Statutes 2022, section 18B.34, subdivision 1, is amended to read:
624.4 		Subdivision 1.Requirement. (a) Except for a licensed commercial applicator, certified 
624.5 	private applicator, or licensed structural pest control applicator, a person, including a 
624.6 	government employee, may not purchase or use a restricted use pesticide in performance 
624.7 	of official duties without having a noncommercial applicator license for an appropriate use 
624.8 	category.
624.9 	(b) A licensee must have a valid license identification card when applying pesticides 
624.10 	and must display it upon demand by an authorized representative of the commissioner or a 
624.11 	law enforcement officer. The license identification card must contain information required 
624.12 	by the commissioner.
624.13 	(c) A person licensed under this section is considered qualified and is not required to 
624.14 	verify, document, or otherwise prove a particular need prior to use, except as required by 
624.15 	the federal label.
624.16 	(d) A person licensed under this section must be 18 years of age or older.

624.17 	Sec. 25. Minnesota Statutes 2022, section 18B.34, subdivision 4, is amended to read:
624.18 		Subd. 4.Renewal. (a) A person An applicator must apply to the commissioner to renew 
624.19 	a noncommercial applicator license. The commissioner may renew a license subject to 
624.20 	reexamination, attendance at workshops a recertification workshop approved by the 
624.21 	commissioner, or other requirements imposed by the commissioner to provide the applicator 
624.22 	with information regarding changing technology and to help assure a continuing level of 
624.23 	competence and ability to use pesticides safely and properly. A recertification workshop 
624.24 	must meet or exceed the competency standards in Code of Federal Regulations, title 40, 
624.25 	part 171. Competency standards for a recertification website must be published on the 
624.26 	Department of Agriculture website. Upon the receipt of an applicator's renewal application, 
624.27 	the commissioner may require the applicator to attend a recertification workshop. Depending 
624.28 	on the application category, the commissioner may require an applicator to complete a 
624.29 	recertification workshop once per year, once every two years, or once every three years. If 
624.30 	the commissioner requires an applicator to attend a recertification workshop and the 
624.31 	applicator fails to attend the workshop, the commissioner may require the applicator to pass 
624.32 	a reexamination. The commissioner may require an additional demonstration of applicator 
625.1 	qualification if the applicator has had a license suspended or revoked or has otherwise had 
625.2 	a history of violations of this chapter.
625.3 	(b) An applicant applicator that meets renewal requirements by reexamination instead 
625.4 	of attending workshops a recertification workshop must pay the equivalent workshop fee 
625.5 	for the reexamination as determined by the commissioner.
625.6 	(c) An applicant applicator has 12 months to renew the license after expiration without 
625.7 	having to meet initial testing requirements.

625.8 	Sec. 26. Minnesota Statutes 2022, section 18B.35, subdivision 1, is amended to read:
625.9 		Subdivision 1.Establishment. (a) The commissioner may establish categories of 
625.10 	structural pest control, commercial applicator, and noncommercial applicator licenses for 
625.11 	administering and enforcing this chapter., and private applicator certification consistent 
625.12 	with federal requirements in Code of Federal Regulations, title 40, sections 171.101 and 
625.13 	171.105, including but not limited to the federal categories that are applicable to the state. 
625.14 	Application categories must meet or exceed the competency standards in Code of Federal 
625.15 	Regulations, title 40, part 171. Competency standards for application categories must be 
625.16 	published on the Department of Agriculture website. The categories may include pest control 
625.17 	operators and ornamental, agricultural, aquatic, forest, and right-of-way pesticide applicators. 
625.18 	Separate subclassifications of categories may be specified as to ground, aerial, or manual 
625.19 	methods to apply pesticides or to the use of pesticides to control insects, plant diseases, 
625.20 	rodents, or weeds.
625.21 	(b) Each category is subject to separate testing procedures and requirements.

625.22 	Sec. 27. Minnesota Statutes 2022, section 18B.36, subdivision 1, is amended to read:
625.23 		Subdivision 1.Requirement. (a) Except for a licensed commercial or noncommercial 
625.24 	applicator, only a certified private applicator may use a restricted use pesticide to produce 
625.25 	an agricultural commodity:
625.26 	(1) as a traditional exchange of services without financial compensation;
625.27 	(2) on a site owned, rented, or managed by the person or the person's employees; or
625.28 	(3) when the private applicator is one of two or fewer employees and the owner or 
625.29 	operator is a certified private applicator or is licensed as a noncommercial applicator.
625.30 	(b) A person may not purchase a restricted use pesticide without presenting a license 
625.31 	card, certified private applicator card, or the card number.
626.1 	(c) A person certified under this section is considered qualified and is not required to 
626.2 	verify, document, or otherwise prove a particular need prior to use, except as required by 
626.3 	the federal label.
626.4 	(d) A person certified under this section must be 18 years of age or older.

626.5 	Sec. 28. Minnesota Statutes 2022, section 18B.36, subdivision 2, is amended to read:
626.6 		Subd. 2.Certification. (a) The commissioner shall prescribe certification requirements 
626.7 	and provide training that meets or exceeds United States Environmental Protection Agency 
626.8 	standards to certify private applicators and provide information relating to changing 
626.9 	technology to help ensure a continuing level of competency and ability to use pesticides 
626.10 	properly and safely. Private applicator certification requirements and training must meet or 
626.11 	exceed the competency standards in Code of Federal Regulations, title 40, part 171. 
626.12 	Competency standards for private applicator certification and training must be published 
626.13 	on the Department of Agriculture website. The training may be done through cooperation 
626.14 	with other government agencies and must be a minimum of three hours in duration.
626.15 	(b) A person must apply to the commissioner for certification as a private applicator. 
626.16 	After completing the certification requirements, which must include an a proctored
626.17 	examination as determined by the commissioner, an applicant must be certified as a private 
626.18 	applicator to use restricted use pesticides. The certification shall expire March 1 of the third 
626.19 	calendar year after the initial year of certification.
626.20 	(c) The commissioner shall issue a private applicator card to a private applicator.

626.21 	Sec. 29. Minnesota Statutes 2022, section 18B.37, subdivision 2, is amended to read:
626.22 		Subd. 2.Commercial and noncommercial applicators. (a) A commercial or 
626.23 	noncommercial applicator, or the applicator's authorized agent, must maintain a record of 
626.24 	pesticides used on each site. Noncommercial applicators must keep records of restricted 
626.25 	use pesticides. The record must include the:
626.26 	(1) date of the pesticide use;
626.27 	(2) time the pesticide application was completed;
626.28 	(3) brand name of the pesticide, the United States Environmental Protection Agency 
626.29 	registration number, and rate used;
626.30 	(4) number of units treated;
626.31 	(5) temperature, wind speed, and wind direction;
627.1 	(6) location of the site where the pesticide was applied;
627.2 	(7) name and address of the customer;
627.3 	(8) name of applicator, name of company, license number of applicator, and address of 
627.4 	applicator company; and
627.5 	(9) any other information required by the commissioner.
627.6 	(b) Portions of records not relevant to a specific type of application may be omitted upon 
627.7 	approval from the commissioner.
627.8 	(c) All information for this record requirement must be contained in a document for each 
627.9 	pesticide application, except a map may be attached to identify treated areas. An invoice 
627.10 	containing the required information may constitute the required record. The commissioner 
627.11 	shall make sample forms available to meet the requirements of this paragraph.
627.12 	(d) The record must be completed no later than five days after the application of the 
627.13 	pesticide.
627.14 	(e) A commercial applicator must give a copy of the record to the customer.
627.15 	(f) Records must be retained by the applicator, company, or authorized agent for five 
627.16 	years after the date of treatment.
627.17 	(g) A record of a commercial or noncommercial applicator must meet or exceed the 
627.18 	requirements in Code of Federal Regulations, title 40, part 171.

627.19 	Sec. 30. Minnesota Statutes 2022, section 18B.37, subdivision 3, is amended to read:
627.20 		Subd. 3.Structural pest control applicators. (a) A structural pest control applicator 
627.21 	must maintain a record of each structural pest control application conducted by that person 
627.22 	or by the person's employees. The record must include the:
627.23 	(1) date of structural pest control application;
627.24 	(2) target pest;
627.25 	(3) brand name of the pesticide, United States Environmental Protection Agency 
627.26 	registration number, and amount used;
627.27 	(4) for fumigation, the temperature and exposure time;
627.28 	(5) time the pesticide application was completed;
627.29 	(6) name and address of the customer;
628.1 	(7) name of structural pest control applicator, name of company and address of applicator 
628.2 	or company, and license number of applicator; and
628.3 	(8) any other information required by the commissioner.
628.4 	(b) All information for this record requirement must be contained in a document for 
628.5 	each pesticide application. An invoice containing the required information may constitute 
628.6 	the record.
628.7 	(c) The record must be completed no later than five days after the application of the 
628.8 	pesticide.
628.9 	(d) Records must be retained for five years after the date of treatment.
628.10 	(e) A copy of the record must be given to a person who ordered the application that is 
628.11 	present at the site where the structural pest control application is conducted, placed in a 
628.12 	conspicuous location at the site where the structural pest control application is conducted 
628.13 	immediately after the application of the pesticides, or delivered to the person who ordered 
628.14 	an application or the owner of the site. The commissioner must make sample forms available 
628.15 	that meet the requirements of this subdivision.
628.16 	(f) A structural applicator must post in a conspicuous place inside a renter's apartment 
628.17 	where a pesticide application has occurred a list of postapplication precautions contained 
628.18 	on the label of the pesticide that was applied in the apartment and any other information 
628.19 	required by the commissioner.
628.20 	(g) A record of a structural applicator must meet or exceed the requirements in Code of 
628.21 	Federal Regulations, title 40, part 171.

628.22 	Sec. 31. Minnesota Statutes 2022, section 18C.005, is amended by adding a subdivision 
628.23 	to read:
628.24 		Subd. 1c.Beneficial substance. "Beneficial substance" means any substance or 
628.25 	compound other than a primary, secondary, and micro plant nutrient, and excluding 
628.26 	pesticides, that can be demonstrated by scientific research to be beneficial to one or more 
628.27 	species of plants, soil, or media.

628.28 	Sec. 32. Minnesota Statutes 2022, section 18C.005, subdivision 33, is amended to read:
628.29 		Subd. 33.Soil amendment. "Soil amendment" means a substance intended to improve 
628.30 	the structural, physical, chemical, biochemical, or biological characteristics of the soil or 
629.1 	modify organic matter at or near the soil surface, except fertilizers, agricultural liming 
629.2 	materials, pesticides, and other materials exempted by the commissioner's rules.

629.3 	Sec. 33. Minnesota Statutes 2022, section 18C.115, subdivision 2, is amended to read:
629.4 		Subd. 2.Adoption of national standards. Applicable national standards contained in 
629.5 	the 1996 official publication, number 49, most recently published version of the official 
629.6 	publication of the Association of American Plant Food Control Officials including the rules 
629.7 	and regulations, statements of uniform interpretation and policy, and the official fertilizer 
629.8 	terms and definitions, and not otherwise adopted by the commissioner, may be adopted as 
629.9 	fertilizer rules of this state.

629.10 	Sec. 34. Minnesota Statutes 2022, section 18C.215, subdivision 1, is amended to read:
629.11 		Subdivision 1.Packaged fertilizers. (a) A person may not sell or distribute specialty 
629.12 	fertilizer in bags or other containers in this state unless a label is placed on or affixed to the 
629.13 	bag or container stating in a clear, legible, and conspicuous form the following information:
629.14 	(1) the net weight and volume, if applicable;
629.15 	(2) the brand and grade, except the grade is not required if primary nutrients are not 
629.16 	claimed;
629.17 	(3) the guaranteed analysis;
629.18 	(4) the name and address of the guarantor;
629.19 	(5) directions for use, except directions for use are not required for custom blend specialty 
629.20 	fertilizers; and
629.21 	(6) a derivatives statement.
629.22 	(b) A person may not sell or distribute fertilizer for agricultural purposes in bags or other 
629.23 	containers in this state unless a label is placed on or affixed to the bag or container stating 
629.24 	in a clear, legible, and conspicuous form the information listed in paragraph (a), clauses (1) 
629.25 	to (4), except:
629.26 	(1) the grade is not required if primary nutrients are not claimed; and
629.27 	(2) the grade on the label is optional if the fertilizer is used only for agricultural purposes 
629.28 	and the guaranteed analysis statement is shown in the complete form as in section 18C.211.
629.29 	(c) The labeled information must appear:
629.30 	(1) on the front or back side of the container;
630.1 	(2) on the upper one-third of the side of the container;
630.2 	(3) on the upper end of the container; or
630.3 	(4) printed on a tag affixed to the upper end of the container.
630.4 	(d) If a person sells a custom blend specialty fertilizer in bags or other containers, the 
630.5 	information required in paragraph (a) must either be affixed to the bag or container as 
630.6 	required in paragraph (c) or be furnished to the customer on an invoice or delivery ticket 
630.7 	in written or printed form.

630.8 	Sec. 35. Minnesota Statutes 2022, section 18C.221, is amended to read:
630.9 	18C.221 FERTILIZER PLANT FOOD CONTENT.
630.10 	(a) Products that are deficient in plant food content are subject to this subdivision.
630.11 	(b) An analysis must show that a fertilizer is deficient:
630.12 	(1) in one or more of its guaranteed primary plant nutrients beyond the investigational 
630.13 	allowances and compensations as established by regulation; or
630.14 	(2) if the overall index value of the fertilizer is shown below the level established by 
630.15 	rule.
630.16 	(c) A deficiency in an official sample of mixed fertilizer resulting from nonuniformity 
630.17 	is not distinguishable from a deficiency due to actual plant nutrient shortage and is properly 
630.18 	subject to official action.
630.19 	(d) For the purpose of determining the commercial index value to be applied, the 
630.20 	commissioner shall determine at least annually the values per unit of nitrogen, available 
630.21 	phosphoric acid phosphate, and soluble potash in fertilizers in this state.
630.22 	(e) If a fertilizer in the possession of the consumer is found by the commissioner to be 
630.23 	short in weight, the registrant or licensee of the fertilizer must submit a penalty payment of 
630.24 	two times the value of the actual shortage to the consumer within 30 days after official 
630.25 	notice from the commissioner.

630.26 	Sec. 36. Minnesota Statutes 2023 Supplement, section 18C.425, subdivision 6, is amended 
630.27 	to read:
630.28 		Subd. 6.Payment of inspection fee. (a) The person who registers and distributes in the 
630.29 	state a specialty fertilizer, soil amendment, or plant amendment under section 18C.411 shall 
630.30 	pay the inspection fee to the commissioner.
631.1 	(b) The person licensed under section 18C.415 who distributes a fertilizer to a person 
631.2 	not required to be so licensed shall pay the inspection fee to the commissioner, except as 
631.3 	exempted under section 18C.421, subdivision 1, paragraph (b).
631.4 	(c) The person responsible for payment of the inspection fees for fertilizers, soil 
631.5 	amendments, or plant amendments sold and used in this state must pay the inspection fee 
631.6 	set under paragraph (e), and until June 30, 2024 2029, an additional 40 cents per ton, of 
631.7 	fertilizer, soil amendment, and plant amendment sold or distributed in this state, with a 
631.8 	minimum of $10 on all tonnage reports. Notwithstanding section 18C.131, the commissioner 
631.9 	must deposit all revenue from the additional 40 cents per ton fee in the agricultural fertilizer 
631.10 	research and education account in section 18C.80. Products sold or distributed to 
631.11 	manufacturers or exchanged between them are exempt from the inspection fee imposed by 
631.12 	this subdivision if the products are used exclusively for manufacturing purposes.
631.13 	(d) A registrant or licensee must retain invoices showing proof of fertilizer, plant 
631.14 	amendment, or soil amendment distribution amounts and inspection fees paid for a period 
631.15 	of three years.
631.16 	(e) By commissioner's order, the commissioner must set the inspection fee at no less 
631.17 	than 39 cents per ton and no more than 70 cents per ton. The commissioner must hold a 
631.18 	public meeting before increasing the fee by more than five cents per ton.

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

631.20 	Sec. 37. Minnesota Statutes 2022, section 18C.70, subdivision 1, is amended to read:
631.21 		Subdivision 1.Establishment; membership. (a) The Minnesota Agricultural Fertilizer 
631.22 	Research and Education Council is established. The council is composed of 12 15 voting 
631.23 	members as follows:
631.24 	(1) two members one member of the Minnesota Crop Production Retailers;
631.25 	(2) one member of the Minnesota Corn Growers Association;
631.26 	(3) one member of the Minnesota Soybean Growers Association;
631.27 	(4) one member of the sugar beet growers industry;
631.28 	(5) one member of the Minnesota Association of Wheat Growers;
631.29 	(6) one member of the potato growers industry;
631.30 	(7) one member of the Minnesota Farm Bureau;
631.31 	(8) one member of the Minnesota Farmers Union;
632.1 	(9) one member from the Minnesota Irrigators Association;
632.2 	(10) one member of the Minnesota Grain and Feed Association; and
632.3 	(11) one member of the Minnesota Independent Crop Consultant Association or the 
632.4 	Minnesota certified crop advisor program;
632.5 	(12) one member representing the Minnesota Institute for Sustainable Agriculture;
632.6 	(13) one member of the Minnesota Soil Health Coalition;
632.7 	(14) one member who is an expert in public health; and
632.8 	(15) one member who is an expert in water quality and has performed scientific research 
632.9 	on water issues.
632.10 	(b) Council members shall serve three-year terms. After the initial council is appointed, 
632.11 	subsequent appointments must be staggered so that one-third of council membership is 
632.12 	replaced each year. Council members must be nominated by their organizations and appointed 
632.13 	by the commissioner and, except for the members specified under paragraph (a), clauses 
632.14 	(14) and (15), nominated by their organizations. The council may add ex officio members 
632.15 	at its discretion. The council must meet at least once per year, with all related expenses 
632.16 	reimbursed by members' sponsoring organizations or by the members themselves.

632.17 	Sec. 38. Minnesota Statutes 2022, section 18C.70, subdivision 5, is amended to read:
632.18 		Subd. 5.Expiration. This section expires June 30, 2025 2030.

632.19 	Sec. 39. Minnesota Statutes 2022, section 18C.71, subdivision 1, is amended to read:
632.20 		Subdivision 1.Eligible projects. Eligible project activities include research, education, 
632.21 	and technology transfer related to the production and application of fertilizer, soil 
632.22 	amendments, and other plant amendments, regenerative agriculture, and the protection of 
632.23 	clean water. Chosen projects must contain a component of outreach that achieves a timely 
632.24 	dissemination of findings and their applicability to the production agricultural community 
632.25 	or metropolitan fertilizer users.

632.26 	Sec. 40. Minnesota Statutes 2022, section 18C.71, is amended by adding a subdivision to 
632.27 	read:
632.28 		Subd. 1a.Priorities and guidance. The council must develop or update research priorities 
632.29 	and request guidance related to:
633.1 	(1) the availability of nitrogen by manure type and livestock species based on 
633.2 	management; and
633.3 	(2) manure management and fertilizer best management practices for areas where surface 
633.4 	water or groundwater are vulnerable to nitrate losses, including the adjustment of practices 
633.5 	based on vulnerability such as coarse textured soils, soils with shallow bedrock, and karst 
633.6 	geology.

633.7 	Sec. 41. Minnesota Statutes 2022, section 18C.71, subdivision 2, is amended to read:
633.8 		Subd. 2.Awarding grants. Applications for program grants must be submitted in the 
633.9 	form prescribed by the Minnesota Agricultural Fertilizer Research and Education Council. 
633.10 	Applications must be submitted on or before the deadline prescribed by the council. All 
633.11 	applications are subject to a thorough in-state review by a peer committee established and 
633.12 	approved by the council. Each project meeting the basic qualifications is subject to a yes 
633.13 	or no vote by each council member. Projects chosen to receive funding must achieve an 
633.14 	affirmative vote from at least eight ten of the 12 15 council members or two-thirds of voting 
633.15 	members present. Projects awarded program funds must submit an annual progress report 
633.16 	in the form prescribed by the council.

633.17 	Sec. 42. Minnesota Statutes 2022, section 18C.71, subdivision 4, is amended to read:
633.18 		Subd. 4.Expiration. This section expires June 30, 2025 2030.

633.19 	Sec. 43. Minnesota Statutes 2022, section 18C.80, subdivision 2, is amended to read:
633.20 		Subd. 2.Expiration. This section expires June 30, 2025 2030.

633.21 	Sec. 44. Minnesota Statutes 2022, section 18D.301, subdivision 1, is amended to read:
633.22 		Subdivision 1.Enforcement required. (a) The commissioner shall enforce this chapter 
633.23 	and chapters 18B, 18C, and 18F.
633.24 	(b) Violations of chapter 18B, 18C, or 18F or rules adopted under chapter 18B, 18C, or 
633.25 	18F, or section 103H.275, subdivision 2, are a violation of this chapter.
633.26 	(c) Upon the request of the commissioner, county attorneys, sheriffs, and other officers 
633.27 	having authority in the enforcement of the general criminal laws shall take action to the 
633.28 	extent of their authority necessary or proper for the enforcement of this chapter or special 
633.29 	orders, standards, stipulations, and agreements of the commissioner.

634.1 	Sec. 45. Minnesota Statutes 2023 Supplement, section 18K.06, is amended to read:
634.2 	18K.06 RULEMAKING.
634.3 	(a) The commissioner shall adopt rules governing the production, testing, processing, 
634.4 	and licensing of industrial hemp. Notwithstanding the two-year limitation for exempt rules 
634.5 	under section 14.388, subdivision 1, Minnesota Rules, chapter 1565, published in the State 
634.6 	Register on August 16, 2021, is effective until August 16, 2025, or until permanent rules 
634.7 	implementing chapter 18K are adopted, whichever occurs first may adopt or amend rules 
634.8 	governing the production, testing, processing, and licensing of industrial hemp using the 
634.9 	procedure in section 14.386, paragraph (a). Section 14.386, paragraph (b), does not apply 
634.10 	to rules adopted or amended under this section.
634.11 	(b) Rules adopted under paragraph (a) must include but not be limited to provisions 
634.12 	governing:
634.13 	(1) the supervision and inspection of industrial hemp during its growth and harvest;
634.14 	(2) the testing of industrial hemp to determine delta-9 tetrahydrocannabinol levels;
634.15 	(3) the use of background check results required under section 18K.04 to approve or 
634.16 	deny a license application; and
634.17 	(4) any other provision or procedure necessary to carry out the purposes of this chapter.
634.18 	(c) Rules issued under this section must be consistent with federal law regarding the 
634.19 	production, distribution, and sale of industrial hemp.

634.20 	Sec. 46. Minnesota Statutes 2022, section 28A.10, is amended to read:
634.21 	28A.10 POSTING OF LICENSE; RULES.
634.22 	All such licenses shall be issued for a period of one year and shall be posted or displayed 
634.23 	in a conspicuous place at the place of business so licensed. Except as provided in sections 
634.24 	29.22, subdivision 4 and 31.39, all such license fees and penalties collected by the 
634.25 	commissioner shall be deposited into the state treasury and credited to the general fund.
634.26 	The commissioner may adopt such rules in conformity with law as the commissioner deems 
634.27 	necessary to effectively and efficiently carry out the provisions of sections 28A.01 to 28A.16.

634.28 	Sec. 47. Minnesota Statutes 2022, section 28A.151, subdivision 1, is amended to read:
634.29 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
634.30 	the meanings given them.
635.1 	(b) "Farmers' market" means an association of three or more persons who assemble at 
635.2 	a defined location that is open to the public for the purpose of selling directly to the consumer 
635.3 	the products of a farm or garden occupied and cultivated by the person selling the product.
635.4 	(c) "Food product sampling" means distributing to individuals at a farmers' market or 
635.5 	community event, for promotional or educational purposes, small portions of a food item 
635.6 	that include as a main ingredient a product sold by the vendor at the farmers' market or 
635.7 	community event. For purposes of this subdivision, "small portion" means a portion that is 
635.8 	no more than three ounces of food or beverage.
635.9 	(d) "Food product demonstration" means cooking or preparing food products to distribute 
635.10 	to individuals at a farmers' market or community event for promotional or educational 
635.11 	purposes.

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

635.13 	Sec. 48. Minnesota Statutes 2022, section 28A.151, subdivision 2, is amended to read:
635.14 		Subd. 2.Food sampling and demonstration. (a) Food used in sampling and 
635.15 	demonstration must be obtained from sources that comply with Minnesota Food Law.
635.16 	(b) Raw animal, raw poultry, and raw fish products must not be served as samples.
635.17 	(c) Food product sampling or food product demonstrations, including cooked animal, 
635.18 	poultry, or fish products, must be prepared on site at the event.
635.19 	(d) Animal or poultry products used for food product sampling or food product 
635.20 	demonstrations must be from animals slaughtered under continuous inspection, either by 
635.21 	the USDA or through Minnesota's "Equal-to" inspection program.
635.22 	(e) The licensing provisions of sections 28A.01 to 28A.16 shall not apply to persons 
635.23 	engaged in food product sampling or food product demonstrations.

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

635.25 	Sec. 49. Minnesota Statutes 2022, section 28A.151, subdivision 3, is amended to read:
635.26 		Subd. 3.Food required to be provided at no cost. Food provided through food product 
635.27 	sampling or food product demonstrations must be provided at no cost to the individual
635.28 	recipient of a sample.

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

636.1 	Sec. 50. Minnesota Statutes 2022, section 28A.151, subdivision 5, is amended to read:
636.2 		Subd. 5.Food safety and equipment standards. (a) Any person conducting food 
636.3 	product sampling or food product demonstrations shall meet the same food safety and 
636.4 	equipment standards that are required of a special event food stand in Minnesota Rules, 
636.5 	parts 4626.1855, items B to O, Q, and R; and 4626.0330.
636.6 	(b) Notwithstanding paragraph (a), a handwashing device is not required when only 
636.7 	prepackaged food samples are offered.

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

636.9 	Sec. 51. Minnesota Statutes 2022, section 28A.151, is amended by adding a subdivision 
636.10 	to read:
636.11 		Subd. 7.Signage. A food product provided through food product sampling or food 
636.12 	product demonstrations must be accompanied by a legible sign or placard that lists the 
636.13 	product's ingredients and major food allergens.

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

636.15 	Sec. 52. Minnesota Statutes 2022, section 28A.21, subdivision 6, is amended to read:
636.16 		Subd. 6.Expiration.  This section expires June 30, 2027 2037.

636.17 	Sec. 53. Minnesota Statutes 2022, section 31.74, is amended to read:
636.18 	31.74 SALE OF IMITATION HONEY.
636.19 		Subdivision 1.Honey defined. As used in this section "honey" means the nectar and 
636.20 	saccharine exudation of plants, gathered, modified and stored in the comb by honey bees, 
636.21 	which is levorotatory, contains not more than 25 percent of water, not more than 25/100 
636.22 	percent of ash, and not more than eight percent sucrose.
636.23 		Subd. 2.Prohibited sale. Notwithstanding any law or rule to the contrary, it is unlawful 
636.24 	for any person to sell or offer for sale any product which is in semblance of honey and which 
636.25 	is labeled, advertised, or otherwise represented to be honey, if it is not honey. The word 
636.26 	"imitation" shall not be used in the name of a product which is in semblance of honey 
636.27 	whether or not it contains any honey. The label for a product which is not in semblance of 
636.28 	honey and which contains honey may include the word "honey" in the name of the product 
636.29 	and the relative position of the word "honey" in the product name, and in the list of 
636.30 	ingredients, when required, shall be determined by its prominence as an ingredient in the 
636.31 	product.
637.1 		Subd. 4.Food consisting of honey and another sweetener. Consistent with the federal 
637.2 	act, the federal regulations incorporated under section 31.101, subdivision 7, and the 
637.3 	prohibition against misbranding in sections 31.02 and 34A.03, the label for a food in 
637.4 	semblance of honey and consisting of honey and another sweetener must include but is not 
637.5 	limited to the following elements:
637.6 	(1) a statement of identity that accurately identifies or describes the nature of the food 
637.7 	or its characterizing properties or ingredients; and
637.8 	(2) the common or usual name of each ingredient in the ingredient statement, in 
637.9 	descending order of predominance by weight.

637.10 	Sec. 54. Minnesota Statutes 2022, section 31.94, is amended to read:
637.11 	31.94 ORGANIC AGRICULTURE; COMMISSIONER DUTIES.
637.12 	(a) In order to promote opportunities for organic agriculture in Minnesota, the 
637.13 	commissioner shall:
637.14 	(1) survey producers and support services and organizations to determine information 
637.15 	and research needs in the area of organic agriculture practices;
637.16 	(2) work with the University of Minnesota and other research and education institutions 
637.17 	to demonstrate the on-farm applicability of organic agriculture practices to conditions in 
637.18 	this state;
637.19 	(3) direct the programs of the department so as to work toward the promotion of organic 
637.20 	agriculture in this state;
637.21 	(4) inform agencies about state or federal programs that support organic agriculture 
637.22 	practices; and
637.23 	(5) work closely with producers, producer organizations, the University of Minnesota, 
637.24 	and other appropriate agencies and organizations to identify opportunities and needs as well 
637.25 	as ensure coordination and avoid duplication of state agency efforts regarding research, 
637.26 	teaching, marketing, and extension work relating to organic agriculture.
637.27 	(b) By November 15 of each year that ends in a zero or a five, the commissioner, in 
637.28 	conjunction with the task force created in paragraph (c), shall report on the status of organic 
637.29 	agriculture in Minnesota to the legislative policy and finance committees and divisions with 
637.30 	jurisdiction over agriculture. The report must include available data on organic acreage and 
637.31 	production, available data on the sales or market performance of organic products, and 
638.1 	recommendations regarding programs, policies, and research efforts that will benefit 
638.2 	Minnesota's organic agriculture sector.
638.3 	(c) A Minnesota Organic Advisory Task Force shall advise the commissioner and the 
638.4 	University of Minnesota on policies and programs that will improve organic agriculture in 
638.5 	Minnesota, including how available resources can most effectively be used for outreach, 
638.6 	education, research, and technical assistance that meet the needs of the organic agriculture 
638.7 	sector. The task force must consist of the following residents of the state:
638.8 	(1) three organic farmers;
638.9 	(2) one wholesaler or distributor of organic products;
638.10 	(3) one representative of organic certification agencies;
638.11 	(4) two organic processors;
638.12 	(5) one representative from University of Minnesota Extension;
638.13 	(6) one University of Minnesota faculty member;
638.14 	(7) one representative from a nonprofit organization representing producers;
638.15 	(8) two public members;
638.16 	(9) one representative from the United States Department of Agriculture;
638.17 	(10) one retailer of organic products; and
638.18 	(11) one organic consumer representative.
638.19 	The commissioner, in consultation with the director of the Minnesota Agricultural Experiment 
638.20 	Station; the dean and director of University of Minnesota Extension and the dean of the 
638.21 	College of Food, Agricultural and Natural Resource Sciences, shall appoint members to 
638.22 	serve three-year terms.
638.23 	Compensation and removal of members are governed by section 15.059, subdivision 6. 
638.24 	The task force must meet at least twice each year and expires on June 30, 2024 2034.
638.25 	(d) For the purposes of expanding, improving, and developing production and marketing 
638.26 	of the organic products of Minnesota agriculture, the commissioner may receive funds from 
638.27 	state and federal sources and spend them, including through grants or contracts, to assist 
638.28 	producers and processors to achieve certification, to conduct education or marketing 
638.29 	activities, to enter into research and development partnerships, or to address production or 
638.30 	marketing obstacles to the growth and well-being of the industry.
639.1 	(e) The commissioner may facilitate the registration of state organic production and 
639.2 	handling operations including those exempt from organic certification according to Code 
639.3 	of Federal Regulations, title 7, section 205.101, and accredited certification agencies 
639.4 	operating within the state.

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

639.6 	Sec. 55. Minnesota Statutes 2022, section 32D.30, is amended to read:
639.7 	32D.30 DAIRY DEVELOPMENT AND PROFITABILITY ENHANCEMENT.
639.8 		Subdivision 1.Program. The commissioner must implement a dairy development and 
639.9 	profitability enhancement program consisting of a dairy profitability enhancement teams 
639.10 	and program, dairy business planning grants, and other services to support the dairy industry.
639.11 		Subd. 2.Dairy profitability enhancement teams program. (a) The dairy profitability 
639.12 	enhancement teams program must provide one-on-one information and technical assistance 
639.13 	to dairy farms of all sizes to enhance their financial success and long-term sustainability. 
639.14 	Teams The program must assist dairy producers in all dairy-producing regions of the state 
639.15 	and. Assistance to producers from the program may consist of be provided individually, as 
639.16 	a team, or through other methods by farm business management instructors, dairy extension 
639.17 	specialists, and other dairy industry partners. Teams The program may engage in activities 
639.18 	including such as comprehensive financial analysis, risk management education, enhanced 
639.19 	milk marketing tools and technologies, and facilitating or improving production systems,
639.20 	including rotational grazing and other sustainable agriculture methods, and value-added 
639.21 	opportunities.
639.22 	(b) The commissioner must make grants to regional or statewide organizations qualified 
639.23 	to manage the various components of the teams program and serve as program administrators. 
639.24 	Each regional or statewide organization must designate a coordinator responsible for 
639.25 	overseeing the program and submitting periodic reports to the commissioner regarding 
639.26 	aggregate changes in producer financial stability, productivity, product quality, animal 
639.27 	health, environmental protection, and other performance measures attributable to the program. 
639.28 	The organizations must submit this information in a format that maintains the confidentiality 
639.29 	of individual dairy producers.
639.30 		Subd. 3.Dairy business planning grants. The commissioner may award dairy business 
639.31 	planning grants of up to $5,000 per producer or dairy processor to develop comprehensive 
639.32 	business plans use technical assistance services for evaluating operations, transitional 
640.1 	changes, expansions, improvements, and other business modifications. Producers and 
640.2 	processors must not use dairy business planning grants for capital improvements.
640.3 		Subd. 4.Funding allocation. Except as specified in law, the commissioner may allocate 
640.4 	dairy development and profitability enhancement program dollars among for the permissible 
640.5 	uses specified in this section and other needs to support the dairy industry, including efforts 
640.6 	to improve the quality of milk produced in the state, in the proportions that the commissioner 
640.7 	deems most beneficial to the state's dairy farmers.
640.8 		Subd. 5.Reporting. No later than July 1 each year, the commissioner must submit a 
640.9 	detailed accomplishment report and work plan detailing future plans for, and the actual and 
640.10 	anticipated accomplishments from, expenditures under this section to the chairs and ranking 
640.11 	minority members of the legislative committees and divisions with jurisdiction over 
640.12 	agriculture policy and finance. If the commissioner significantly modifies a submitted work 
640.13 	plan during the fiscal year, the commissioner must notify the chairs and ranking minority 
640.14 	members.

640.15 	Sec. 56. Minnesota Statutes 2022, section 41B.039, subdivision 2, is amended to read:
640.16 		Subd. 2.State participation. The state may participate in a new real estate loan with 
640.17 	an eligible lender to a beginning farmer to the extent of 45 percent of the principal amount 
640.18 	of the loan or $400,000 $500,000, whichever is less. The interest rates and repayment terms 
640.19 	of the authority's participation interest may be different than the interest rates and repayment 
640.20 	terms of the lender's retained portion of the loan.

640.21 	Sec. 57. Minnesota Statutes 2022, section 41B.04, subdivision 8, is amended to read:
640.22 		Subd. 8.State participation. With respect to loans that are eligible for restructuring 
640.23 	under sections 41B.01 to 41B.23 and upon acceptance by the authority, the authority shall 
640.24 	enter into a participation agreement or other financial arrangement whereby it shall participate 
640.25 	in a restructured loan to the extent of 45 percent of the primary principal or $525,000
640.26 	$625,000, whichever is less. The authority's portion of the loan must be protected during 
640.27 	the authority's participation by the first mortgage held by the eligible lender to the extent 
640.28 	of its participation in the loan.

640.29 	Sec. 58. Minnesota Statutes 2022, section 41B.042, subdivision 4, is amended to read:
640.30 		Subd. 4.Participation limit; interest. The authority may participate in new 
640.31 	seller-sponsored loans to the extent of 45 percent of the principal amount of the loan or 
640.32 	$400,000 $500,000, whichever is less. The interest rates and repayment terms of the 
641.1 	authority's participation interest may be different than the interest rates and repayment terms 
641.2 	of the seller's retained portion of the loan.

641.3 	Sec. 59. Minnesota Statutes 2022, section 41B.043, subdivision 1b, is amended to read:
641.4 		Subd. 1b.Loan participation. The authority may participate in an agricultural 
641.5 	improvement loan with an eligible lender to a farmer who meets the requirements of section 
641.6 	41B.03, subdivision 1, clauses (1) and (2), and who is actively engaged in farming. 
641.7 	Participation is limited to 45 percent of the principal amount of the loan or $400,000
641.8 	$500,000, whichever is less. The interest rates and repayment terms of the authority's 
641.9 	participation interest may be different than the interest rates and repayment terms of the 
641.10 	lender's retained portion of the loan.

641.11 	Sec. 60. Minnesota Statutes 2022, section 41B.045, subdivision 2, is amended to read:
641.12 		Subd. 2.Loan participation. The authority may participate in a livestock expansion 
641.13 	and modernization loan with an eligible lender to a livestock farmer who meets the 
641.14 	requirements of section 41B.03, subdivision 1, clauses (1) and (2), and who are actively 
641.15 	engaged in a livestock operation. A prospective borrower must have a total net worth, 
641.16 	including assets and liabilities of the borrower's spouse and dependents, of less than 
641.17 	$1,700,000 in 2017 and an amount in subsequent years which is adjusted for inflation by 
641.18 	multiplying that amount by the cumulative inflation rate as determined by the United States 
641.19 	All-Items Consumer Price Index.
641.20 	Participation is limited to 45 percent of the principal amount of the loan or $525,000
641.21 	$625,000, whichever is less. The interest rates and repayment terms of the authority's 
641.22 	participation interest may be different from the interest rates and repayment terms of the 
641.23 	lender's retained portion of the loan.

641.24 	Sec. 61. Minnesota Statutes 2022, section 41B.047, subdivision 1, is amended to read:
641.25 		Subdivision 1.Establishment. The authority shall establish and implement a disaster 
641.26 	recovery loan program to help farmers:
641.27 	(1) clean up, repair, or replace farm structures and septic and water systems, as well as 
641.28 	replace seed, other crop inputs, feed, and livestock;
641.29 	(2) purchase watering systems, irrigation systems, and other drought mitigation systems 
641.30 	and practices, and feed when drought is the cause of the purchase;
641.31 	(3) restore farmland;
642.1 	(4) replace flocks or livestock, make building improvements, or cover the loss of revenue 
642.2 	when the replacement, improvements, or loss of revenue is due to the confirmed presence 
642.3 	of a highly contagious animal disease in a commercial poultry or game flock, or a commercial 
642.4 	livestock operation, located in Minnesota; or
642.5 	(5) cover the loss of revenue when the revenue loss is due to an infectious human disease 
642.6 	for which the governor has declared a peacetime emergency under section 12.31.

642.7 	Sec. 62. Minnesota Statutes 2022, section 232.21, subdivision 3, is amended to read:
642.8 		Subd. 3.Commissioner. "Commissioner" means the commissioner of agriculture or the 
642.9 	commissioner's designee.

642.10 	Sec. 63. Minnesota Statutes 2022, section 232.21, subdivision 7, is amended to read:
642.11 		Subd. 7.Grain. "Grain" means any cereal grain, coarse grain, or oilseed in unprocessed 
642.12 	form for which a standard has been established by the United States Secretary of Agriculture, 
642.13 	dry edible beans, or agricultural crops designated by the commissioner by rule product 
642.14 	commonly referred to as grain, including wheat, corn, oats, barley, rye, rice, soybeans, 
642.15 	emmer, sorghum, triticale, millet, pulses, dry edible beans, sunflower seed, rapeseed, canola, 
642.16 	safflower, flaxseed, mustard seed, crambe, sesame seed, and other products ordinarily stored 
642.17 	in grain warehouses.

642.18 	Sec. 64. Minnesota Statutes 2022, section 232.21, subdivision 11, is amended to read:
642.19 		Subd. 11.Producer. "Producer" means a person who owns or manages a grain producing 
642.20 	or growing operation and holds or shares the responsibility for marketing that grain produced
642.21 	grows grain on land owned or leased by the person.

642.22 	Sec. 65. Minnesota Statutes 2022, section 232.21, subdivision 12, is amended to read:
642.23 		Subd. 12.Public grain warehouse operator. "Public grain warehouse operator" means: 
642.24 	(1) a person licensed to operate operating a grain warehouse in which grain belonging to 
642.25 	persons other than the grain warehouse operator is accepted for storage or purchase, or; (2) 
642.26 	a person who offers grain storage or grain warehouse facilities to the public for hire; or (3) 
642.27 	a feed-processing plant that receives and stores grain, the equivalent of which, it processes 
642.28 	and returns to the grain's owner in amounts, at intervals, and with added ingredients that 
642.29 	are mutually agreeable to the grain's owner and the person operating the plant.

643.1 	Sec. 66. Minnesota Statutes 2022, section 232.21, subdivision 13, is amended to read:
643.2 		Subd. 13.Scale ticket. "Scale ticket" means a memorandum showing the weight, grade
643.3 	and kind of grain which is issued by a grain elevator or warehouse operator to a depositor 
643.4 	at the time the grain is delivered.

643.5 	Sec. 67. [346.021] FINDER TO GIVE NOTICE.
643.6 	A person who finds an estray and knows who owns the estray must notify the estray's 
643.7 	owner within seven days after finding the estray and request that the owner pay all reasonable 
643.8 	charges and take the estray away. A finder who does not know who owns an estray must 
643.9 	either:
643.10 	(1) within ten days, file a notice with the town or city clerk and post a physical or online 
643.11 	notice of the finding of the estray. The notice must briefly describe the estray or provide a 
643.12 	photograph of the estray, provide the residence or contact information of the finder, and 
643.13 	provide the approximate location and time when the finder found the estray; or
643.14 	(2) within seven days, surrender the estray to a local animal control agency or to a kennel 
643.15 	as defined in section 347.31, subdivision 2.

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

643.17 	Sec. 68. Laws 2023, chapter 43, article 2, section 142, subdivision 9, is amended to read:
643.18 		Subd. 9.Dairy law. Minnesota Statutes 2022, sections 17.984; 32D.03, subdivision 5; 
643.19 	32D.24; 32D.25, subdivision 1; 32D.26; 32D.27; and 32D.28, are repealed.

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

643.21 	Sec. 69. REVIVAL AND REENACTMENT.
 643.22 	Minnesota Statutes, section 32D.25, subdivision 2, is revived and reenacted effective 
643.23 	retroactively from July 1, 2023.

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

643.25 	Sec. 70. REPORT REQUIRED; COOPERATIVE FINANCIAL REPORTING.
 643.26 	The commissioner of agriculture shall convene a cooperative financial reporting 
643.27 	workgroup, which must include producers who sell to a cooperative and representatives 
643.28 	from cooperative management. The commissioner shall develop recommendations relating 
643.29 	to requirements for cooperatives to report on financial conditions and report back with 
644.1 	recommendations to the legislative committees with jurisdiction over agriculture by January 
644.2 	3, 2025. Participating stakeholders must be given an opportunity to include written testimony 
644.3 	to the legislative committees in the commissioner's report.

644.4 	Sec. 71. COMMERCIAL APPLICATOR LICENSE EXAMINATION LANGUAGE 
644.5 	REQUIREMENTS.
 644.6 	By January 1, 2025, the commissioner of agriculture must ensure that examinations for 
644.7 	a commercial applicator license under Minnesota Statutes, section 18B.33, are available in 
644.8 	Spanish and that applicants are informed that the examinations can be taken in Spanish. 
644.9 	The commissioner must use money appropriated from the pesticide regulatory account 
644.10 	under Minnesota Statutes, section 18B.05, for this purpose.

644.11 	Sec. 72. CREDIT MARKET REPORT REQUIRED.
 644.12 	The commissioner of agriculture must convene a stakeholder working group to explore 
644.13 	the state establishing a market for carbon credits, ecosystem services credits, or other credits 
644.14 	generated by farmers who implement clean water, climate-smart, and soil-healthy farming 
644.15 	practices. To the extent practicable, the stakeholder working group must include but is not 
644.16 	limited to farmers; representatives of agricultural organizations; experts in geoscience, 
644.17 	carbon storage, greenhouse gas modeling, and agricultural economics; industry 
644.18 	representatives with experience in carbon markets and supply chain sustainability; and 
644.19 	representatives of environmental organizations with expertise in carbon sequestration and 
644.20 	agriculture. No later than February 1, 2025, the commissioner must report recommendations 
644.21 	to the legislative committees with jurisdiction over agriculture. The commissioner must 
644.22 	provide participating stakeholders an opportunity to include written testimony in the 
644.23 	commissioner's report.

644.24 	Sec. 73. REPEALER.
 644.25 	(a) Minnesota Statutes 2022, sections 3.7371, subdivision 7; and 34.07, are repealed.
644.26 	(b) Minnesota Rules, parts 1506.0010; 1506.0015; 1506.0020; 1506.0025; 1506.0030; 
644.27 	1506.0035; and 1506.0040, are repealed.

645.1 	ARTICLE 39
645.2 	BROADBAND

645.3 	Section 1. Minnesota Statutes 2022, section 116J.396, is amended by adding a subdivision 
645.4 	to read:
645.5 		Subd. 4.Transfer. The commissioner may transfer up to $5,000,000 of a fiscal year 
645.6 	appropriation between the border-to-border broadband program, low density population 
645.7 	broadband program, and the broadband line extension program to meet demand. The 
645.8 	commissioner must inform the chairs and ranking minority members of the legislative 
645.9 	committees with jurisdiction over broadband finance in writing when this transfer authority 
645.10 	is used. The written notice must include how much money was transferred and why the 
645.11 	transfer was made. The written notice must also be filed with the Legislative Reference 
645.12 	Library in compliance with Minnesota Statutes, section 3.195.

645.13 	Sec. 2. BROADBAND DEVELOPMENT; APPLICATION FOR FEDERAL 
645.14 	FUNDING; APPROPRIATION.
 645.15 	(a) The commissioner of employment and economic development must prepare and 
645.16 	submit an application to the United States Department of Commerce requesting State Digital 
645.17 	Equity Capacity Grant funding made available under Public Law 117-58, the Infrastructure 
645.18 	Investment and Jobs Act.
645.19 	(b) The amount awarded to Minnesota pursuant to the application submitted under 
645.20 	paragraph (a) is appropriated to the commissioner of employment and economic development 
645.21 	for purposes of the commissioner's Minnesota Digital Opportunity Plan.

645.22 	ARTICLE 40
645.23 	CLIMATE AND ENERGY FINANCE

645.24	Section 1. APPROPRIATIONS.
 	
645.25 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
645.26 	and for the purposes specified in this article. The appropriations are from the general fund, 
645.27 	or another named fund, and are available for the fiscal years indicated for each purpose. 
645.28 	The figures "2024" and "2025" used in this article mean that the appropriations listed under 
645.29 	them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively. 
645.30 	"The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium" 
645.31 	is fiscal years 2024 and 2025.

645.32				APPROPRIATIONS
	
645.33				Available for the Year
	
646.1				Ending June 30
	
646.2					2024
		2025

646.3	Sec. 2. DEPARTMENT OF COMMERCE

646.4	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	1,133,000
	
646.5 	The amounts that may be spent for each 
646.6 	purpose are specified in the following 
646.7 	subdivisions.

646.8
646.9	Subd. 2.Thermal Energy Network Site 
Suitability Study
 					
646.10 	$500,000 the second year is for the thermal 
646.11 	energy network site suitability study under 
646.12 	article 42, section 51. This is a onetime 
646.13 	appropriation and is available until December 
646.14 	31, 2025.

646.15	Subd. 3.SolarAPP+ Program
 					
646.16 	$500,000 the second year is for transfer to the 
646.17 	SolarAPP+ program account established under 
646.18 	Minnesota Statutes, section 216C.48, to award 
646.19 	incentives to local units of government that 
646.20 	deploy federally developed software to 
646.21 	automate the review of applications and 
646.22 	issuance of permits for residential solar 
646.23 	projects. Incentives must be awarded only to 
646.24 	local units of government located outside the 
646.25 	electric service territory of the public utility 
646.26 	subject to Minnesota Statutes, section 
646.27 	116C.779, subdivision 1. This is a onetime 
646.28 	transfer and is available until June 30, 2028.

646.29	Subd. 4.Grid-Enhancing Technologies
 					
646.30 	$133,000 the second year is to (1) participate 
646.31 	in a Minnesota Public Utilities Commission 
646.32 	proceeding to review electric transmission line 
646.33 	owners' plans to deploy grid-enhancing 
646.34 	technologies, and (2) issue an order to 
647.1 	implement the plans. The base in fiscal year 
647.2 	2026 is $265,000 and the base in fiscal year 
647.3 	2027 is $265,000. The base in fiscal year 2028 
647.4 	is $0.

647.5	Sec. 3. PUBLIC UTILITIES COMMISSION
 	$
	-0-
	$
	267,000
	
647.6 	(a) $39,000 the second year is to support the 
647.7 	Thermal Energy Network Deployment Work 
647.8 	Group and prepare a report under article 42, 
647.9 	section 49. The base in fiscal year 2026 is 
647.10 	$77,000 and the base in fiscal year 2027 is $0.
647.11 	(b) $117,000 the second year is to review 
647.12 	electric transmission line owners' plans to 
647.13 	deploy grid-enhancing technologies and 
647.14 	develop a commission order to implement 
647.15 	approved plans under article 42, section 52. 
647.16 	The base in fiscal year 2026 is $157,000 and 
647.17 	the base in fiscal year 2027 is $157,000. The 
647.18 	base in fiscal year 2028 is $0.
647.19 	(c) $111,000 the second year is to conduct a 
647.20 	proceeding to develop a cost-sharing 
647.21 	mechanism enabling developers of distributed 
647.22 	generation projects to pay utilities to expand 
647.23 	distribution line capacity in order to 
647.24 	interconnect to the grid. The base in fiscal year 
647.25 	2026 is $111,000 and the base in fiscal year 
647.26 	2027 is $77,000. The base in fiscal year 2028 
647.27 	is $0.

647.28 	Sec. 4. GRANT ADMINISTRATION REPORTING.
 647.29 	(a) By July 1, 2024, the commissioner of commerce must report to the chairs and ranking 
647.30 	minority members of the legislative committees having jurisdiction over energy finance 
647.31 	and policy regarding the anticipated costs to administer each named grant and competitive 
647.32 	grant program in Laws 2023, chapter 60, article 10, section 2, and Laws 2023, chapter 60, 
647.33 	article 11, section 2.
648.1 	(b) Within 90 days after each named grantee has fulfilled the obligations of the grantee's 
648.2 	grant agreement, the commissioner must report to the chairs and ranking minority members 
648.3 	of the legislative committees having jurisdiction over energy finance and policy on the final 
648.4 	cost to administer (1) each named grant included in paragraph (a), and (2) each named grant 
648.5 	in this article and article 5.
648.6 	(c) By January 15, 2025, and each year thereafter, the commissioner must report to the 
648.7 	chairs and ranking minority members of the legislative committees having jurisdiction over 
648.8 	energy finance and policy on the annual cost to administer (1) each competitive grant 
648.9 	program included in paragraph (a), and (2) each competitive grant program in this article 
648.10 	and article 5.

648.11 	ARTICLE 41
648.12 	RENEWABLE DEVELOPMENT ACCOUNT APPROPRIATIONS

648.13	Section 1. APPROPRIATIONS.
 	
648.14 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
648.15 	and for the purposes specified in this article. Notwithstanding Minnesota Statutes, section 
648.16 	116C.779, subdivision 1, paragraph (j), the appropriations are from the renewable 
648.17 	development account in the special revenue fund established in Minnesota Statutes, section 
648.18 	116C.779, subdivision 1, and are available for the fiscal years indicated for each purpose. 
648.19 	The figures "2024" and "2025" used in this article mean that the appropriations listed under 
648.20 	them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively. 
648.21 	"The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium" 
648.22 	is fiscal years 2024 and 2025.

648.23				APPROPRIATIONS
	
648.24				Available for the Year
	
648.25				Ending June 30
	
648.26					2024
		2025

648.27	Sec. 2. DEPARTMENT OF COMMERCE

648.28	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	14,450,000
	
648.29 	The amounts that may be spent for each 
648.30 	purpose are specified in the following 
648.31 	subdivisions.

649.1
649.2	Subd. 2.Geothermal Energy System; Sabathani 
Community Center
 					
649.3 	(a) $6,000,000 the second year is for a grant 
649.4 	to the Sabathani Community Center in 
649.5 	Minneapolis to construct a geothermal energy 
649.6 	system that provides space heating and cooling 
649.7 	to the center. This is a onetime appropriation 
649.8 	and is available until June 30, 2028.
649.9 	(b) For the purposes of this subdivision, 
649.10 	"geothermal energy system" means a system 
649.11 	composed of: a heat pump that moves a 
649.12 	heat-transferring fluid through piping 
649.13 	embedded in the earth and absorbs the earth's 
649.14 	constant temperature; a heat exchanger; and 
649.15 	ductwork to distribute heated and cooled air 
649.16 	to a building.

649.17	Subd. 3.Geothermal Planning Grants
 					
649.18 	$1,200,000 the second year is for transfer to 
649.19 	the geothermal planning grant account 
649.20 	established under Minnesota Statutes, section 
649.21 	216C.47, for planning grants to political 
649.22 	subdivisions to assess the feasibility and cost 
649.23 	of constructing geothermal energy systems. 
649.24 	This is a onetime appropriation and is 
649.25 	available until June 30, 2029.

649.26
649.27	Subd. 4.Energy Efficiency Projects; Dakota 
County
 					
649.28 	(a) $500,000 the second year is for a grant to 
649.29 	Dakota County for energy efficiency projects 
649.30 	that are located in the service area of the public 
649.31 	utility subject to Minnesota Statutes, section 
649.32 	116C.779. This is a onetime appropriation and 
649.33 	is available until June 30, 2027.
649.34 	(b) For purposes of this subdivision, "energy 
649.35 	efficiency project" includes: (1) LED lighting, 
650.1 	as defined under Minnesota Statutes, section 
650.2 	216B.241, subdivision 5; (2) solar arrays; or 
650.3 	(3) heating, ventilating, or air conditioning 
650.4 	system improvements.

650.5	Subd. 5.Anaerobic Digester Energy System
 					
650.6 	(a) $5,000,000 the second year is for a grant 
650.7 	to Recycling and Energy, in partnership with 
650.8 	Dem-Con HZI Bioenergy, LLC, to construct 
650.9 	an anaerobic energy system in Louisville 
650.10 	Township. This is a onetime appropriation and 
650.11 	is available until June 30, 2028.
650.12 	(b) For the purposes of this subdivision, 
650.13 	"anaerobic energy system" means a facility 
650.14 	that uses diverted food and organic waste to 
650.15 	create renewable natural gas and biochar.

650.16	Subd. 6.SolarAPP+ Program
 					
650.17 	$1,500,000 the second year is for transfer to 
650.18 	the SolarAPP+ program account established 
650.19 	under Minnesota Statutes, section 216C.48, 
650.20 	to award incentives to local units of 
650.21 	government that deploy federally developed 
650.22 	software to automate the review of 
650.23 	applications and issuance of permits for 
650.24 	residential solar projects. Incentives must be 
650.25 	awarded only to political subdivisions located 
650.26 	within the electric service territory of the 
650.27 	public utility that is subject to Minnesota 
650.28 	Statutes, section 116C.779, subdivision 1. This 
650.29 	is a onetime transfer.

650.30
650.31	Subd. 7.Ultraefficient Vehicle Development 
Grants
 					
650.32 	$250,000 the second year is transferred to the 
650.33 	ultraefficient vehicle development grant 
650.34 	account under article 42, section 48, to provide 
651.1 	grants for developers and producers of 
651.2 	ultraefficient vehicles. This is a onetime 
651.3 	transfer.

651.4	Sec. 3. PUBLIC UTILITIES COMMISSION
 	$
	-0-
	$
	1,000,000
	
651.5 	$1,000,000 the second year is for the carbon 
651.6 	dioxide pipelines study under article 42, 
651.7 	section 50. This is a onetime appropriation.

651.8 	ARTICLE 42
651.9 	ENERGY POLICY

651.10 	Section 1. Minnesota Statutes 2022, section 103I.621, subdivision 1, is amended to read:
651.11 		Subdivision 1.Permit. (a) Notwithstanding any department or agency rule to the contrary, 
651.12 	the commissioner shall issue, on request by the owner of the property and payment of the 
651.13 	permit fee, permits for the reinjection of water by a properly constructed well into the same 
651.14 	aquifer from which the water was drawn for the operation of a groundwater thermal exchange 
651.15 	device.
651.16 	(b) As a condition of the permit, an applicant must agree to allow inspection by the 
651.17 	commissioner during regular working hours for department inspectors.
651.18 	(c) Not more than 200 permits may be issued for small systems having that (1) have
651.19 	maximum capacities of 20 gallons per minute or less, and (2) are compliant with the natural 
651.20 	resource water-use requirements under subdivision 2. The small systems are subject to 
651.21 	inspection twice a year.
651.22 	(d) Not more than ten 100 permits may be issued for larger systems having that (1) have
651.23 	maximum capacities from over 20 to 50 gallons per minute, and (2) are compliant with the 
651.24 	natural resource water-use requirements under subdivision 2. The larger systems are subject 
651.25 	to inspection four times a year.
651.26 	(e) A person issued a permit must comply with this section for the permit to be valid.
651.27 	and permit conditions deemed necessary to protect public health and safety of groundwater. 
651.28 	Permit conditions may include but are not limited to:
651.29 	(1) notification to the commissioner at intervals specified in the permit conditions;
651.30 	(2) system operation and maintenance;
651.31 	(3) system location and construction;
652.1 	(4) well location and construction;
652.2 	(5) signage requirements;
652.3 	(6) reports of system construction, performance, operation, and maintenance;
652.4 	(7) removal of the system upon termination of use or failure;
652.5 	(8) disclosure of the system at the time of property transfer;
652.6 	(9) requirements to obtain approval from the commissioner prior to deviating from the 
652.7 	approval plan and conditions;
652.8 	(10) groundwater level monitoring; and
652.9 	(11) groundwater quality monitoring.
652.10 	(f) The property owner or the property owner's agent must submit to the commissioner 
652.11 	a permit application on a form provided by the commissioner, or in a format approved by 
652.12 	the commissioner, that provides any information necessary to protect public health and 
652.13 	safety of groundwater.
652.14 	(g) A permit granted under this section is not valid if a water-use permit is required for 
652.15 	the project and is not approved by the commissioner of natural resources.

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

652.17 	Sec. 2. Minnesota Statutes 2022, section 103I.621, subdivision 2, is amended to read:
652.18 		Subd. 2.Water-use requirements apply. Water-use permit requirements and penalties 
652.19 	under chapter 103F 103G and related rules adopted and enforced by the commissioner of 
652.20 	natural resources apply to groundwater thermal exchange permit recipients. A person who 
652.21 	violates a provision of this section is subject to enforcement or penalties for the noncomplying 
652.22 	activity that are available to the commissioner and the Pollution Control Agency.

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

652.24 	Sec. 3. Minnesota Statutes 2023 Supplement, section 116C.779, subdivision 1, is amended 
652.25 	to read:
652.26 		Subdivision 1.Renewable development account. (a) The renewable development 
652.27 	account is established as a separate account in the special revenue fund in the state treasury. 
652.28 	Appropriations and transfers to the account shall be credited to the account. Earnings, such 
652.29 	as interest, dividends, and any other earnings arising from assets of the account, shall be 
652.30 	credited to the account. Funds remaining in the account at the end of a fiscal year are not 
653.1 	canceled to the general fund but remain in the account until expended. The account shall 
653.2 	be administered by the commissioner of management and budget as provided under this 
653.3 	section.
653.4 	(b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating 
653.5 	plant must transfer all funds in the renewable development account previously established 
653.6 	under this subdivision and managed by the public utility to the renewable development 
653.7 	account established in paragraph (a). Funds awarded to grantees in previous grant cycles 
653.8 	that have not yet been expended and unencumbered funds required to be paid in calendar 
653.9 	year 2017 under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, are not subject 
653.10 	to transfer under this paragraph.
653.11 	(c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing 
653.12 	each January 15 thereafter, the public utility that owns the Prairie Island nuclear generating 
653.13 	plant must transfer to the renewable development account $500,000 each year for each dry 
653.14 	cask containing spent fuel that is located at the Prairie Island power plant for each year the 
653.15 	plant is in operation, and $7,500,000 each year the plant is not in operation if ordered by 
653.16 	the commission pursuant to paragraph (i). The fund transfer must be made if nuclear waste 
653.17 	is stored in a dry cask at the independent spent-fuel storage facility at Prairie Island for any 
653.18 	part of a year. The total amount transferred annually under this paragraph must be reduced 
653.19 	by $3,750,000.
653.20 	(d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing 
653.21 	each January 15 thereafter, the public utility that owns the Monticello nuclear generating 
653.22 	plant must transfer to the renewable development account $350,000 each year for each dry 
653.23 	cask containing spent fuel that is located at the Monticello nuclear power plant for each 
653.24 	year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered 
653.25 	by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear 
653.26 	waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for 
653.27 	any part of a year.
653.28 	(e) Each year, the public utility shall withhold from the funds transferred to the renewable 
653.29 	development account under paragraphs (c) and (d) the amount necessary to pay its obligations 
653.30 	under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, for that calendar year.
653.31 	(f) If the commission approves a new or amended power purchase agreement, the 
653.32 	termination of a power purchase agreement, or the purchase and closure of a facility under 
653.33 	section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity, 
653.34 	the public utility subject to this section shall enter into a contract with the city in which the 
654.1 	poultry litter plant is located to provide grants to the city for the purposes of economic 
654.2 	development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each 
654.3 	fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid 
654.4 	by the public utility from funds withheld from the transfer to the renewable development 
654.5 	account, as provided in paragraphs (b) and (e).
654.6 	(g) If the commission approves a new or amended power purchase agreement, or the 
654.7 	termination of a power purchase agreement under section 216B.2424, subdivision 9, with 
654.8 	an entity owned or controlled, directly or indirectly, by two municipal utilities located north 
654.9 	of Constitutional Route No. 8, that was previously used to meet the biomass mandate in 
654.10 	section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a 
654.11 	grant contract with such entity to provide $6,800,000 per year for five years, commencing 
654.12 	30 days after the commission approves the new or amended power purchase agreement, or 
654.13 	the termination of the power purchase agreement, and on each June 1 thereafter through 
654.14 	2021, to assist the transition required by the new, amended, or terminated power purchase 
654.15 	agreement. The grant shall be paid by the public utility from funds withheld from the transfer 
654.16 	to the renewable development account as provided in paragraphs (b) and (e).
654.17 	(h) The collective amount paid under the grant contracts awarded under paragraphs (f) 
654.18 	and (g) is limited to the amount deposited into the renewable development account, and its 
654.19 	predecessor, the renewable development account, established under this section, that was 
654.20 	not required to be deposited into the account under Laws 1994, chapter 641, article 1, section 
654.21 	10.
654.22 	(i) After discontinuation of operation of the Prairie Island nuclear plant or the Monticello 
654.23 	nuclear plant and each year spent nuclear fuel is stored in dry cask at the discontinued 
654.24 	facility, the commission shall require the public utility to pay $7,500,000 for the discontinued 
654.25 	Prairie Island facility and $5,250,000 for the discontinued Monticello facility for any year 
654.26 	in which the commission finds, by the preponderance of the evidence, that the public utility 
654.27 	did not make a good faith effort to remove the spent nuclear fuel stored at the facility to a 
654.28 	permanent or interim storage site out of the state. This determination shall be made at least 
654.29 	every two years.
654.30 	(j) Funds in the account may be expended only for any of the following purposes:
654.31 	(1) to stimulate research and development of renewable electric energy technologies;
654.32 	(2) to encourage grid modernization, including, but not limited to, projects that implement 
654.33 	electricity storage, load control, and smart meter technology; and
655.1 	(3) to stimulate other innovative energy projects that reduce demand and increase system 
655.2 	efficiency and flexibility.
655.3 	Expenditures from the fund must benefit Minnesota ratepayers receiving electric service 
655.4 	from the utility that owns a nuclear-powered electric generating plant in this state or the 
655.5 	Prairie Island Indian community or its members.
655.6 	The utility that owns a nuclear generating plant is eligible to apply for grants under this 
655.7 	subdivision.
655.8 	(k) For the purposes of paragraph (j), the following terms have the meanings given:
655.9 	(1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph 
655.10 	(c), clauses (1), (2), (4), and (5); and
655.11 	(2) "grid modernization" means:
655.12 	(i) enhancing the reliability of the electrical grid;
655.13 	(ii) improving the security of the electrical grid against cyberthreats and physical threats; 
655.14 	and
655.15 	(iii) increasing energy conservation opportunities by facilitating communication between 
655.16 	the utility and its customers through the use of two-way meters, control technologies, energy 
655.17 	storage and microgrids, technologies to enable demand response, and other innovative 
655.18 	technologies.
655.19 	(l) A renewable development account advisory group that includes, among others, 
655.20 	representatives of the public utility and its ratepayers, and includes at least one representative 
655.21 	of the Prairie Island Indian community appointed by that community's tribal council, shall 
655.22 	develop recommendations on account expenditures. The advisory group must design a 
655.23 	request for proposal and evaluate projects submitted in response to a request for proposals. 
655.24 	The advisory group must utilize an independent third-party expert to evaluate proposals 
655.25 	submitted in response to a request for proposal, including all proposals made by the public 
655.26 	utility. A request for proposal for research and development under paragraph (j), clause (1), 
655.27 	may be limited to or include a request to higher education institutions located in Minnesota 
655.28 	for multiple projects authorized under paragraph (j), clause (1). The request for multiple 
655.29 	projects may include a provision that exempts the projects from the third-party expert review 
655.30 	and instead provides for project evaluation and selection by a merit peer review grant system. 
655.31 	In the process of determining request for proposal scope and subject and in evaluating 
655.32 	responses to request for proposals, the advisory group must strongly consider, where 
655.33 	reasonable:
656.1 	(1) potential benefit to Minnesota citizens and businesses and the utility's ratepayers; 
656.2 	and
656.3 	(2) the proposer's commitment to increasing the diversity of the proposer's workforce 
656.4 	and vendors.
656.5 	(m) The advisory group shall submit funding recommendations to the public utility, 
656.6 	which has full and sole authority to determine which expenditures shall be submitted by 
656.7 	the advisory group to the legislature. The commission may approve proposed expenditures, 
656.8 	may disapprove proposed expenditures that it finds not to be in compliance with this 
656.9 	subdivision or otherwise not in the public interest, and may, if agreed to by the public utility, 
656.10 	modify proposed expenditures. The commission shall, by order, submit its funding 
656.11 	recommendations to the legislature as provided under paragraph (n).
656.12 	(n) The commission shall present its recommended appropriations from the account to 
656.13 	the senate and house of representatives committees with jurisdiction over energy policy and 
656.14 	finance annually by February 15. Expenditures from the account must be appropriated by 
656.15 	law. In enacting appropriations from the account, the legislature:
656.16 	(1) may approve or disapprove, but may not modify, the amount of an appropriation for 
656.17 	a project recommended by the commission; and
656.18 	(2) may not appropriate money for a project the commission has not recommended 
656.19 	funding.
656.20 	(o) A request for proposal for renewable energy generation projects must, when feasible 
656.21 	and reasonable, give preference to projects that are most cost-effective for a particular energy 
656.22 	source.
656.23 	(p) The advisory group must annually, by February 15, report to the chairs and ranking 
656.24 	minority members of the legislative committees with jurisdiction over energy policy on 
656.25 	projects funded by the account for the prior year and all previous years. The report must, 
656.26 	to the extent possible and reasonable, itemize the actual and projected financial benefit to 
656.27 	the public utility's ratepayers of each project.
656.28 	(q) By February 1, 2018, and each February 1 thereafter, the commissioner of 
656.29 	management and budget shall submit a written report regarding the availability of funds in 
656.30 	and obligations of the account to the chairs and ranking minority members of the senate 
656.31 	and house committees with jurisdiction over energy policy and finance, the public utility, 
656.32 	and the advisory group.
657.1 	(r) (q) A project receiving funds from the account must produce a written final report 
657.2 	that includes sufficient detail for technical readers and a clearly written summary for 
657.3 	nontechnical readers. The report must include an evaluation of the project's financial, 
657.4 	environmental, and other benefits to the state and the public utility's ratepayers. A project 
657.5 	receiving funds from the account must submit a report that meets the requirements of section 
657.6 	216C.51, subdivisions 3 and 4, each year the project funded by the account is in progress.
657.7 	(s) (r) Final reports, any mid-project status reports, and renewable development account 
657.8 	financial reports must be posted online on a public website designated by the commissioner 
657.9 	of commerce.
657.10 	(t) (s) All final reports must acknowledge that the project was made possible in whole 
657.11 	or part by the Minnesota renewable development account, noting that the account is financed 
657.12 	by the public utility's ratepayers.
657.13 	(u) (t) Of the amount in the renewable development account, priority must be given to 
657.14 	making the payments required under section 216C.417.
657.15 	(v) (u) Construction projects receiving funds from this account are subject to the 
657.16 	requirement to pay the prevailing wage rate, as defined in section 177.42 and the requirements 
657.17 	and enforcement provisions in sections 177.27, 177.30, 177.32, 177.41 to 177.435, and 
657.18 	177.45.

657.19 	Sec. 4. Minnesota Statutes 2023 Supplement, section 116C.7792, is amended to read:
657.20 	116C.7792 SOLAR ENERGY PRODUCTION INCENTIVE PROGRAM.
657.21 	(a) The utility subject to section 116C.779 shall operate a program to provide solar 
657.22 	energy production incentives for solar energy systems of no more than a total aggregate 
657.23 	nameplate capacity of 40 kilowatts alternating current per premise. The owner of a solar 
657.24 	energy system installed before June 1, 2018, is eligible to receive a production incentive 
657.25 	under this section for any additional solar energy systems constructed at the same customer 
657.26 	location, provided that the aggregate capacity of all systems at the customer location does 
657.27 	not exceed 40 kilowatts.
657.28 	(b) The program is funded by money withheld from transfer to the renewable development 
657.29 	account under section 116C.779, subdivision 1, paragraphs (b) and (e). Program funds must 
657.30 	be placed in a separate account for the purpose of the solar energy production incentive 
657.31 	program operated by the utility and not for any other program or purpose.
657.32 	(c) Funds allocated to the solar energy production incentive program in 2019 and 2020 
657.33 	remain available to the solar energy production incentive program.
658.1 	(d) The following amounts are allocated to the solar energy production incentive program:
658.2 	(1) $10,000,000 in 2021;
658.3 	(2) $10,000,000 in 2022;
658.4 	(3) $5,000,000 in 2023;
658.5 	(4) $11,250,000 in 2024; and
658.6 	(5) $6,250,000 in 2025; and
658.7 	(6) $5,000,000 each year, beginning in 2026 through 2035.
658.8 	(e) Notwithstanding the Department of Commerce's November 14, 2018, decision in 
658.9 	Docket No. E002/M-13-1015 regarding operation of the utility's solar energy production 
658.10 	incentive program, half of the amounts allocated each year under paragraph (d), clauses (3), 
658.11 	(4), and (5), must be reserved for solar energy systems whose installation meets the eligibility 
658.12 	standards for the low-income program established in the November 14, 2018, decision or 
658.13 	successor decisions of the department. All other program operations of the solar energy 
658.14 	production incentive program are governed by the provisions of the November 14, 2018, 
658.15 	decision or successor decisions of the department.
658.16 	(f) Funds allocated to the solar energy production incentive program that have not been 
658.17 	committed to a specific project at the end of a program year remain available to the solar 
658.18 	energy production incentive program.
658.19 	(g) Any unspent amount remaining on January 1, 2028, must be transferred to the 
658.20 	renewable development account.
658.21 	(h) A solar energy system receiving a production incentive under this section must be 
658.22 	sized to less than 120 percent of the customer's on-site annual energy consumption when 
658.23 	combined with other distributed generation resources and subscriptions provided under 
658.24 	section 216B.1641 associated with the premise. The production incentive must be paid for 
658.25 	ten years commencing with the commissioning of the system.
658.26 	(i) The utility must file a plan to operate the program with the commissioner of commerce. 
658.27 	The utility may not operate the program until it is approved by the commissioner. A change 
658.28 	to the program to include projects up to a nameplate capacity of 40 kilowatts or less does 
658.29 	not require the utility to file a plan with the commissioner. Any plan approved by the 
658.30 	commissioner of commerce must not provide an increased incentive scale over prior years 
658.31 	unless the commissioner demonstrates that changes in the market for solar energy facilities 
658.32 	require an increase.

659.1 	Sec. 5. Minnesota Statutes 2022, section 216B.098, is amended by adding a subdivision 
659.2 	to read:
659.3 		Subd. 7.Social Security number and individual taxpayer identification number. If 
659.4 	a utility requires a new customer to provide a Social Security number on an application for 
659.5 	utility service, the utility must accept an individual taxpayer identification number in lieu 
659.6 	of a Social Security number. The utility application must indicate that the utility accepts an 
659.7 	individual taxpayer identification number.

659.8 	Sec. 6. Minnesota Statutes 2022, section 216B.16, subdivision 6c, is amended to read:
659.9 		Subd. 6c.Incentive plan for energy conservation and efficient fuel-switching 
659.10 	improvement. (a) The commission may order public utilities to develop and submit for 
659.11 	commission approval incentive plans that describe the method of recovery and accounting 
659.12 	for utility conservation and efficient fuel-switching expenditures and savings. For public 
659.13 	utilities that provide electric service, the commission must develop and implement incentive 
659.14 	plans designed to promote energy conservation separately from the plans designed to promote 
659.15 	efficient fuel-switching. In developing the incentive plans the commission shall ensure the 
659.16 	effective involvement of interested parties.
659.17 	(b) In approving incentive plans, the commission shall consider:
659.18 	(1) whether the plan is likely to increase utility investment in cost-effective energy 
659.19 	conservation or efficient fuel switching;
659.20 	(2) whether the plan is compatible with the interest of utility ratepayers and other 
659.21 	interested parties;
659.22 	(3) whether the plan links the incentive to the utility's performance in achieving 
659.23 	cost-effective conservation or efficient fuel switching; and
659.24 	(4) whether the plan is in conflict with other provisions of this chapter.;
659.25 	(5) whether the plan conflicts with other provisions of this chapter; and
659.26 	(6) the likely financial impacts of the conservation and efficient fuel-switching programs 
659.27 	on the utility.
659.28 	(c) The commission may set rates to encourage the vigorous and effective implementation 
659.29 	of utility conservation and efficient fuel-switching programs. The commission may:
659.30 	(1) increase or decrease any otherwise allowed rate of return on net investment based 
659.31 	upon the utility's skill, efforts, and success in conserving improving the efficient use of
659.32 	energy through energy conservation or efficient fuel switching;
660.1 	(2) share between ratepayers and utilities the net savings resulting from energy 
660.2 	conservation and efficient fuel-switching programs to the extent justified by the utility's 
660.3 	skill, efforts, and success in conserving improving the efficient use of energy; and
660.4 	(3) adopt any mechanism that satisfies the criteria of this subdivision, such that 
660.5 	implementation of cost-effective conservation or efficient fuel switching is a preferred 
660.6 	resource choice for the public utility considering the impact of conservation or efficient fuel 
660.7 	switching on earnings of the public utility.
660.8 	(d) Any incentives offered to electric utilities under this subdivision for efficient-fuel 
660.9 	switching projects expire December 31, 2032.

660.10 	Sec. 7. Minnesota Statutes 2022, section 216B.16, subdivision 8, is amended to read:
660.11 		Subd. 8.Advertising expense. (a) The commission shall disapprove the portion of any 
660.12 	rate which makes an allowance directly or indirectly for expenses incurred by a public utility 
660.13 	to provide a public advertisement which:
660.14 	(1) is designed to influence or has the effect of influencing public attitudes toward 
660.15 	legislation or proposed legislation, or toward a rule, proposed rule, authorization or proposed 
660.16 	authorization of the Public Utilities Commission or other agency of government responsible 
660.17 	for regulating a public utility;
660.18 	(2) is designed to justify or otherwise support or defend a rate, proposed rate, practice 
660.19 	or proposed practice of a public utility;
660.20 	(3) is designed primarily to promote consumption of the services of the utility;
660.21 	(4) is designed primarily to promote good will for the public utility or improve the 
660.22 	utility's public image; or
660.23 	(5) is designed to promote the use of nuclear power or to promote a nuclear waste storage 
660.24 	facility.
660.25 	(b) The commission may approve a rate which makes an allowance for expenses incurred 
660.26 	by a public utility to disseminate information which:
660.27 	(1) is designed to encourage conservation efficient use of energy supplies;
660.28 	(2) is designed to promote safety; or
660.29 	(3) is designed to inform and educate customers as to financial services made available 
660.30 	to them by the public utility.
661.1 	(c) The commission shall not withhold approval of a rate because it makes an allowance 
661.2 	for expenses incurred by the utility to disseminate information about corporate affairs to its 
661.3 	owners.

661.4 	Sec. 8. Minnesota Statutes 2022, section 216B.2402, is amended by adding a subdivision 
661.5 	to read:
661.6 		Subd. 3a.Data mining facility. "Data mining facility" means all buildings, structures, 
661.7 	equipment, and installations at a single site where electricity is used primarily by computers 
661.8 	to process transactions involving digital currency that is not issued by a central authority.

661.9 	Sec. 9. Minnesota Statutes 2022, section 216B.2402, subdivision 4, is amended to read:
661.10 		Subd. 4.Efficient fuel-switching improvement. "Efficient fuel-switching improvement" 
661.11 	means a project that:
661.12 	(1) replaces a fuel used by a customer with electricity or natural gas delivered at retail 
661.13 	by a utility subject to section 216B.2403 or 216B.241;
661.14 	(2) results in a net increase in the use of electricity or natural gas and a net decrease in 
661.15 	source energy consumption on a fuel-neutral basis;
661.16 	(3) otherwise meets the criteria established for consumer-owned utilities in section 
661.17 	216B.2403, subdivision 8, and for public utilities under section 216B.241, subdivisions 11 
661.18 	and 12; and
661.19 	(4) requires the installation of equipment that utilizes electricity or natural gas, resulting 
661.20 	in a reduction or elimination of the previous fuel used.
661.21 	An efficient fuel-switching improvement is not an energy conservation improvement or 
661.22 	energy efficiency even if the efficient fuel-switching improvement results in a net reduction 
661.23 	in electricity or natural gas use. An efficient fuel-switching improvement does not include, 
661.24 	and must not count toward any energy savings goal from, energy conservation improvements 
661.25 	when fuel switching would result in an increase of greenhouse gas emissions into the 
661.26 	atmosphere on an annual basis.

661.27 	Sec. 10. Minnesota Statutes 2022, section 216B.2402, subdivision 10, is amended to read:
661.28 		Subd. 10.Gross annual retail energy sales. "Gross annual retail energy sales" means 
661.29 	a utility's annual electric sales to all Minnesota retail customers, or natural gas throughput 
661.30 	to all retail customers, including natural gas transportation customers, on a utility's 
661.31 	distribution system in Minnesota. Gross annual retail energy sales does not include:
662.1 	(1) gas sales to:
662.2 	(i) a large energy facility;
662.3 	(ii) a large customer facility whose natural gas utility has been exempted by the 
662.4 	commissioner under section 216B.241, subdivision 1a, paragraph (a), with respect to natural 
662.5 	gas sales made to the large customer facility; and
662.6 	(iii) a commercial gas customer facility whose natural gas utility has been exempted by 
662.7 	the commissioner under section 216B.241, subdivision 1a, paragraph (b), with respect to 
662.8 	natural gas sales made to the commercial gas customer facility;
662.9 	(2) electric sales to:
662.10 	(i) a large customer facility whose electric utility has been exempted by the commissioner 
662.11 	under section 216B.241, subdivision 1a, paragraph (a), with respect to electric sales made 
662.12 	to the large customer facility; or and
662.13 	(ii) a data mining facility, if the facility:
662.14 	(A) has provided a signed letter to the utility verifying the facility meets the definition 
662.15 	of a data mining facility; and
662.16 	(B) imposes a peak electrical demand on a consumer-owned utility's system equal to or 
662.17 	greater than 40 percent of the peak electrical demand of the system, measured in the same 
662.18 	manner as the utility that serves the customer facility measures electric demand for billing 
662.19 	purposes; or
662.20 	(3) the amount of electric sales prior to December 31, 2032, that are associated with a 
662.21 	utility's program, rate, or tariff for electric vehicle charging based on a methodology and 
662.22 	assumptions developed by the department in consultation with interested stakeholders no 
662.23 	later than December 31, 2021. After December 31, 2032, incremental sales to electric 
662.24 	vehicles must be included in calculating a public utility's gross annual retail sales.

662.25 	Sec. 11. Minnesota Statutes 2022, section 216B.2403, subdivision 2, is amended to read:
662.26 		Subd. 2.Consumer-owned utility; energy-savings goal. (a) Each individual 
662.27 	consumer-owned electric utility subject to this section has an annual energy-savings goal 
662.28 	equivalent to 1.5 percent of gross annual retail energy sales and each individual 
662.29 	consumer-owned natural gas utility subject to this section has an annual energy-savings 
662.30 	goal equivalent to one percent of gross annual retail energy sales, to be met with a minimum 
662.31 	of energy savings from energy conservation improvements equivalent to at least 0.95 0.90
662.32 	percent of the consumer-owned utility's gross annual retail energy sales. The balance of 
663.1 	energy savings toward the annual energy-savings goal may be achieved only by the following 
663.2 	consumer-owned utility activities:
663.3 	(1) energy savings from additional energy conservation improvements;
663.4 	(2) electric utility infrastructure projects, as defined in section 216B.1636, subdivision 
663.5 	1, that result in increased efficiency greater than would have occurred through normal 
663.6 	maintenance activity;
663.7 	(3) net energy savings from efficient fuel-switching improvements that meet the criteria 
663.8 	under subdivision 8, which may contribute up to 0.55 0.60 percent of the goal; or
663.9 	(4) subject to department approval, demand-side natural gas or electric energy displaced 
663.10 	by use of waste heat recovered and used as thermal energy, including the recovered thermal 
663.11 	energy from a cogeneration or combined heat and power facility.
663.12 	(b) The energy-savings goals specified in this section must be calculated based on 
663.13 	weather-normalized sales averaged over the most recent three years. A consumer-owned 
663.14 	utility may elect to carry forward energy savings in excess of 1.5 percent for a year to the 
663.15 	next three years, except that energy savings from electric utility infrastructure projects may 
663.16 	be carried forward for five years. A particular energy savings can only be used to meet one 
663.17 	year's goal.
663.18 	(c) A consumer-owned utility subject to this section is not required to make energy 
663.19 	conservation improvements that are not cost-effective, even if the improvement is necessary 
663.20 	to attain the energy-savings goal. A consumer-owned utility subject to this section must 
663.21 	make reasonable efforts to implement energy conservation improvements that exceed the 
663.22 	minimum level established under this subdivision if cost-effective opportunities and funding 
663.23 	are available, considering other potential investments the consumer-owned utility intends 
663.24 	to make to benefit customers during the term of the plan filed under subdivision 3.
663.25 	(d) Notwithstanding any provision to the contrary, until July 1, 2026, spending by a 
663.26 	consumer-owned utility subject to this section on efficient fuel-switching improvements 
663.27 	implemented to meet the annual energy savings goal under this section must not exceed 
663.28 	0.55 percent per year, averaged over a three-year period, of the consumer-owned utility's 
663.29 	gross annual retail energy sales.

663.30 	Sec. 12. Minnesota Statutes 2022, section 216B.2403, subdivision 3, is amended to read:
663.31 		Subd. 3.Consumer-owned utility; energy conservation and optimization plans. (a) 
663.32 	By June 1, 2022, and at least every three years thereafter, each consumer-owned utility must 
663.33 	file with the commissioner an energy conservation and optimization plan that describes the 
664.1 	programs for energy conservation, efficient fuel-switching, load management, and other 
664.2 	measures the consumer-owned utility intends to offer to achieve the utility's energy savings 
664.3 	goal.
664.4 	(b) A plan's term may extend up to three years. A multiyear plan must identify the total 
664.5 	energy savings and energy savings resulting from energy conservation improvements that 
664.6 	are projected to be achieved in each year of the plan. A multiyear plan that does not, in each 
664.7 	year of the plan, meet both the minimum energy savings goal from energy conservation 
664.8 	improvements and the total energy savings goal of 1.5 percent, or lower goals adjusted by 
664.9 	the commissioner under paragraph (k), must:
664.10 	(1) state why each goal is projected to be unmet; and
664.11 	(2) demonstrate how the consumer-owned utility proposes to meet both goals on an 
664.12 	average basis over the duration of the plan.
664.13 	(c) A plan filed under this subdivision must provide:
664.14 	(1) for existing programs, an analysis of the cost-effectiveness of the consumer-owned 
664.15 	utility's programs offered under the plan, using a list of baseline energy- and capacity-savings 
664.16 	assumptions developed in consultation with the department; and
664.17 	(2) for new programs, a preliminary analysis upon which the program will proceed, in 
664.18 	parallel with further development of assumptions and standards.
664.19 	(d) The commissioner must evaluate a plan filed under this subdivision based on the 
664.20 	plan's likelihood to achieve the energy-savings goals established in subdivision 2. The 
664.21 	commissioner may make recommendations to a consumer-owned utility regarding ways to 
664.22 	increase the effectiveness of the consumer-owned utility's energy conservation activities 
664.23 	and programs under this subdivision. The commissioner may recommend that a 
664.24 	consumer-owned utility implement a cost-effective energy conservation or efficient 
664.25 	fuel-switching program, including an energy conservation program suggested by an outside 
664.26 	source such as a political subdivision, nonprofit corporation, or community organization.
664.27 	(e) Beginning June 1, 2023, and every June 1 thereafter, each consumer-owned utility 
664.28 	must file: (1) an annual update identifying the status of the plan filed under this subdivision, 
664.29 	including: (i) total expenditures and investments made to date under the plan; and (ii) any 
664.30 	intended changes to the plan; and (2) a summary of the annual energy-savings achievements 
664.31 	under a plan. An annual filing made in the last year of a plan must contain a new plan that 
664.32 	complies with this section.
665.1 	(f) When evaluating the cost-effectiveness of a consumer-owned utility's energy 
665.2 	conservation programs, the consumer-owned utility and the commissioner must consider 
665.3 	the costs and benefits to ratepayers, the utility, participants, and society. The commissioner 
665.4 	must also consider the rate at which the consumer-owned utility is increasing energy savings 
665.5 	and expenditures on energy conservation, and lifetime energy savings and cumulative energy 
665.6 	savings.
665.7 	(g) A consumer-owned utility may annually spend and invest up to ten percent of the 
665.8 	total amount spent and invested on energy conservation, efficient fuel-switching, or load 
665.9 	management improvements on research and development projects that meet the applicable 
665.10 	definition of energy conservation, efficient fuel-switching, or load management improvement.
665.11 	(h) A generation and transmission cooperative electric association or municipal power 
665.12 	agency that provides energy services to consumer-owned utilities may file a plan under this 
665.13 	subdivision on behalf of the consumer-owned utilities to which the association or agency 
665.14 	provides energy services and may make investments, offer conservation programs, and 
665.15 	otherwise fulfill the energy-savings goals and reporting requirements of this subdivision 
665.16 	for those consumer-owned utilities on an aggregate basis.
665.17 	(i) A consumer-owned utility is prohibited from spending for or investing in energy 
665.18 	conservation improvements that directly benefit a large energy facility or a large electric 
665.19 	customer facility the commissioner has exempted under section 216B.241, subdivision 1a.
665.20 	(j) The energy conservation and optimization plan of a consumer-owned utility may 
665.21 	include activities to improve energy efficiency in the public schools served by the utility. 
665.22 	These activities may include programs to:
665.23 	(1) increase the efficiency of the school's lighting and heating and cooling systems;
665.24 	(2) recommission buildings;
665.25 	(3) train building operators; and
665.26 	(4) provide opportunities to educate students, teachers, and staff regarding energy 
665.27 	efficiency measures implemented at the school.
665.28 	(k) A consumer-owned utility may request that the commissioner adjust the 
665.29 	consumer-owned utility's minimum goal for energy savings from energy conservation 
665.30 	improvements under subdivision 2, paragraph (a), for the duration of the plan filed under 
665.31 	this subdivision. The request must be made by January 1 of the year when the 
665.32 	consumer-owned utility must file a plan under this subdivision. The request must be based 
665.33 	on:
666.1 	(1) historical energy conservation improvement program achievements;
666.2 	(2) customer class makeup;
666.3 	(3) projected load growth;
666.4 	(4) an energy conservation potential study that estimates the amount of cost-effective 
666.5 	energy conservation potential that exists in the consumer-owned utility's service territory;
666.6 	(5) the cost-effectiveness and quality of the energy conservation programs offered by 
666.7 	the consumer-owned utility; and
666.8 	(6) other factors the commissioner and consumer-owned utility determine warrant an 
666.9 	adjustment.
666.10 	The commissioner must adjust the energy savings goal to a level the commissioner determines 
666.11 	is supported by the record, but must not approve a minimum energy savings goal from 
666.12 	energy conservation improvements that is less than an average of 0.95 percent per year over 
666.13 	the consecutive years of the plan's duration, including the year the minimum energy savings 
666.14 	goal is adjusted.
666.15 	(l) A consumer-owned utility filing a conservation and optimization plan that includes 
666.16 	an efficient fuel-switching program to achieve the utility's energy savings goal must, as part 
666.17 	of the filing, demonstrate by a comparison of greenhouse gas emissions between the fuels
666.18 	that the requirements of subdivision 8 are met, using a full fuel-cycle energy analysis.

666.19 	Sec. 13. Minnesota Statutes 2022, section 216B.2403, subdivision 5, is amended to read:
666.20 		Subd. 5.Energy conservation programs for low-income households. (a) A 
666.21 	consumer-owned utility subject to this section must provide energy conservation programs 
666.22 	to low-income households. The commissioner must evaluate a consumer-owned utility's 
666.23 	plans under this section by considering the consumer-owned utility's historic spending on 
666.24 	energy conservation programs directed to low-income households, the rate of customer 
666.25 	participation in and the energy savings resulting from those programs, and the number of 
666.26 	low-income persons residing in the consumer-owned utility's service territory. A municipal 
666.27 	utility that furnishes natural gas service must spend at least 0.2 percent of the municipal 
666.28 	utility's most recent three-year average gross operating revenue from residential customers 
666.29 	in Minnesota on energy conservation programs for low-income households. A 
666.30 	consumer-owned utility that furnishes electric service must spend at least 0.2 percent of the 
666.31 	consumer-owned utility's gross operating revenue from residential customers in Minnesota 
666.32 	on energy conservation programs for low-income households. The requirement under this 
666.33 	paragraph applies to each generation and transmission cooperative association's aggregate 
667.1 	gross operating revenue from the sale of electricity to residential customers in Minnesota 
667.2 	by all of the association's member distribution cooperatives.
667.3 	(b) To meet all or part of the spending requirements of paragraph (a), a consumer-owned 
667.4 	utility may contribute money to the energy and conservation account established in section 
667.5 	216B.241, subdivision 2a. An energy conservation optimization plan must state the amount 
667.6 	of contributions the consumer-owned utility plans to make to the energy and conservation 
667.7 	account. Contributions to the account must be used for energy conservation programs serving 
667.8 	low-income households, including renters, located in the service area of the consumer-owned 
667.9 	utility making the contribution. Contributions must be remitted to the commissioner by 
667.10 	February 1 each year.
667.11 	(c) The commissioner must establish energy conservation programs for low-income 
667.12 	households funded through contributions to the energy and conservation account under 
667.13 	paragraph (b). When establishing energy conservation programs for low-income households, 
667.14 	the commissioner must consult political subdivisions, utilities, and nonprofit and community 
667.15 	organizations, including organizations providing energy and weatherization assistance to 
667.16 	low-income households. The commissioner must record and report expenditures and energy 
667.17 	savings achieved as a result of energy conservation programs for low-income households 
667.18 	funded through the energy and conservation account in the report required under section 
667.19 	216B.241, subdivision 1c, paragraph (f). The commissioner may contract with a political 
667.20 	subdivision, nonprofit or community organization, public utility, municipality, or 
667.21 	consumer-owned utility to implement low-income programs funded through the energy and 
667.22 	conservation account.
667.23 	(d) A consumer-owned utility may petition the commissioner to modify the required 
667.24 	spending under this subdivision if the consumer-owned utility and the commissioner were 
667.25 	unable to expend the amount required for three consecutive years.
667.26 	(e) The commissioner must develop and establish guidelines for determining the eligibility 
667.27 	of multifamily buildings to participate in energy conservation programs provided to 
667.28 	low-income households. Notwithstanding the definition of low-income household in section 
667.29 	216B.2402, a consumer-owned utility or association may apply the most recent guidelines 
667.30 	published by the department for purposes of determining the eligibility of multifamily 
667.31 	buildings to participate in low-income programs. The commissioner must convene a 
667.32 	stakeholder group to review and update these guidelines by August 1, 2021, and at least 
667.33 	once every five years thereafter. The stakeholder group must include but is not limited to 
667.34 	representatives of public utilities; municipal electric or gas utilities; electric cooperative 
667.35 	associations; multifamily housing owners and developers; and low-income advocates.
668.1 	(f) Up to 15 percent of a consumer-owned utility's spending on low-income energy 
668.2 	conservation programs may be spent on preweatherization measures. A consumer-owned 
668.3 	utility is prohibited from claiming energy savings from preweatherization measures toward 
668.4 	the consumer-owned utility's energy savings goal.
668.5 	(g) The commissioner must, by order, establish a list of preweatherization measures 
668.6 	eligible for inclusion in low-income energy conservation programs no later than March 15, 
668.7 	2022.
668.8 	(h) A Healthy AIR (Asbestos Insulation Removal) account is established as a separate 
668.9 	account in the special revenue fund in the state treasury. A consumer-owned utility may 
668.10 	elect to contribute money to the Healthy AIR account to provide preweatherization measures 
668.11 	for households eligible for weatherization assistance from the state weatherization assistance 
668.12 	program in section 216C.264. Remediation activities must be executed in conjunction with 
668.13 	federal weatherization assistance program services. Money contributed to the account by a 
668.14 	consumer-owned utility counts toward: (1) the minimum low-income spending requirement 
668.15 	under paragraph (a); and (2) the cap on preweatherization measures under paragraph (f). 
668.16 	Money in the account is annually appropriated to the commissioner of commerce to pay for 
668.17 	Healthy AIR-related activities.
668.18 	(i) This paragraph applies to a consumer-owned utility that supplies electricity to a 
668.19 	low-income household whose primary heating fuel is supplied by an entity other than a 
668.20 	public utility. Any spending on space and water heating energy conservation improvements 
668.21 	and efficient fuel-switching by the consumer-owned utility on behalf of the low-income 
668.22 	household may be applied to the consumer owned utility's spending requirement under 
668.23 	paragraph (a). To the maximum extent possible, a consumer-owned utility providing services 
668.24 	under this paragraph must offer the services in conjunction with weatherization services 
668.25 	provided under section 216C.264.

668.26 	Sec. 14. Minnesota Statutes 2022, section 216B.2403, subdivision 8, is amended to read:
668.27 		Subd. 8.Criteria for efficient fuel-switching improvements. (a) A fuel-switching 
668.28 	improvement is deemed efficient if, applying the technical criteria established under section 
668.29 	216B.241, subdivision 1d, paragraph (e), the improvement, relative to the fuel being 
668.30 	displaced:
668.31 	(1) results in a net reduction in the amount of source energy consumed for a particular 
668.32 	use, measured on a fuel-neutral basis, using (i) the consumer-owned utility's or the utility's 
668.33 	electricity supplier's annual system average efficiency, or (ii) if the utility elects, a seasonal, 
669.1 	monthly, or more granular level of analysis for the electric utility system over the measure's 
669.2 	life;
669.3 	(2) results in a net reduction of statewide greenhouse gas emissions, as defined in section 
669.4 	216H.01, subdivision 2, over the lifetime of the improvement. For an efficient fuel-switching 
669.5 	improvement installed by an electric consumer-owned utility, the reduction in emissions 
669.6 	must be measured based on the hourly emissions profile of the consumer-owned utility or 
669.7 	the utility's electricity supplier, as reported in the most recent resource plan approved by 
669.8 	the commission under section 216B.2422. If the hourly emissions profile is not available, 
669.9 	the commissioner must develop a method consumer-owned utilities must use to estimate 
669.10 	that value using (i) the consumer-owned utility's or the utility's electricity supplier's annual 
669.11 	average emissions factor, or (ii) if the utility elects, a seasonal, monthly, or more granular 
669.12 	level of analysis for the electric utility system over the measure's life; and
669.13 	(3) is cost-effective, considering the costs and benefits from the perspective of the 
669.14 	consumer-owned utility, participants, and society; and.
669.15 	(4) is installed and operated in a manner that improves the consumer-owned utility's 
669.16 	system load factor.
669.17 	(b) For purposes of this subdivision, "source energy" means the total amount of primary 
669.18 	energy required to deliver energy services, adjusted for losses in generation, transmission, 
669.19 	and distribution, and expressed on a fuel-neutral basis.

669.20 	Sec. 15. Minnesota Statutes 2022, section 216B.241, subdivision 1c, is amended to read:
669.21 		Subd. 1c.Public utility; energy-saving goals. (a) The commissioner shall establish 
669.22 	energy-saving goals for energy conservation improvements and shall evaluate an energy 
669.23 	conservation improvement program on how well it meets the goals set.
669.24 	(b) A public utility providing electric service has an annual energy-savings goal equivalent 
669.25 	to 1.75 percent of gross annual retail energy sales unless modified by the commissioner 
669.26 	under paragraph (c). A public utility providing natural gas service has an annual 
669.27 	energy-savings goal equivalent to one percent of gross annual retail energy sales, which 
669.28 	cannot be lowered by the commissioner. The savings goals must be calculated based on the 
669.29 	most recent three-year weather-normalized average. A public utility providing electric 
669.30 	service may elect to carry forward energy savings in excess of 1.75 percent for a year to 
669.31 	the succeeding three calendar years, except that savings from electric utility infrastructure 
669.32 	projects allowed under paragraph (d) may be carried forward for five years. A public utility 
669.33 	providing natural gas service may elect to carry forward energy savings in excess of one 
670.1 	percent for a year to the succeeding three calendar years. A particular energy savings can 
670.2 	only be used to meet one year's goal.
670.3 	(c) In its energy conservation and optimization plan filing, a public utility may request 
670.4 	the commissioner to adjust its annual energy-savings percentage goal based on its historical 
670.5 	conservation investment experience, customer class makeup, load growth, a conservation 
670.6 	potential study, or other factors the commissioner determines warrants an adjustment.
670.7 	(d) The commissioner may not approve a plan of a public utility that provides for an 
670.8 	annual energy-savings goal of less than one percent of gross annual retail energy sales from 
670.9 	energy conservation improvements.
670.10 	The balance of the 1.75 percent annual energy savings goal may be achieved through 
670.11 	energy savings from:
670.12 	(1) additional energy conservation improvements;
670.13 	(2) electric utility infrastructure projects approved by the commission under section 
670.14 	216B.1636 that result in increased efficiency greater than would have occurred through 
670.15 	normal maintenance activity; or
670.16 	(3) subject to department approval, demand-side natural gas or electric energy displaced 
670.17 	by use of waste heat recovered and used as thermal energy, including the recovered thermal 
670.18 	energy from a cogeneration or combined heat and power facility.
670.19 	(e) A public utility is not required to make energy conservation investments to attain 
670.20 	the energy-savings goals of this subdivision that are not cost-effective even if the investment 
670.21 	is necessary to attain the energy-savings goals. For the purpose of this paragraph, in 
670.22 	determining cost-effectiveness, the commissioner shall consider: (1) the costs and benefits 
670.23 	to ratepayers, the utility, participants, and society; (2) the rate at which a public utility is 
670.24 	increasing both its energy savings and its expenditures on energy conservation; and (3) the 
670.25 	public utility's lifetime energy savings and cumulative energy savings.
670.26 	(f) On an annual basis, the commissioner shall produce and make publicly available a 
670.27 	report on the annual energy and capacity savings and estimated carbon dioxide reductions 
670.28 	achieved by the programs under this section and section 216B.2403 for the two most recent 
670.29 	years for which data is available. The report must also include information regarding any 
670.30 	annual energy sales or generation capacity increases resulting from efficient fuel-switching 
670.31 	improvements. The commissioner shall report on program performance both in the aggregate 
670.32 	and for each entity filing an energy conservation improvement plan for approval or review 
671.1 	by the commissioner, and must estimate progress made toward the statewide energy-savings 
671.2 	goal under section 216B.2401.
671.3 	(g) Notwithstanding any provision to the contrary, until July 1, 2026, spending by a 
671.4 	public utility subject to this section on efficient fuel-switching improvements to meet energy 
671.5 	savings goals under this section must not exceed 0.35 percent per year, averaged over three 
671.6 	years, of the public utility's gross annual retail energy sales.

671.7 	Sec. 16. Minnesota Statutes 2022, section 216B.241, subdivision 2, is amended to read:
671.8 		Subd. 2.Public utility; energy conservation and optimization plans. (a) The 
671.9 	commissioner may require a public utility to make investments and expenditures in energy 
671.10 	conservation improvements, explicitly setting forth the interest rates, prices, and terms under 
671.11 	which the improvements must be offered to the customers.
671.12 	(b) A public utility shall file an energy conservation and optimization plan by June 1, 
671.13 	on a schedule determined by order of the commissioner, but at least every three years. As 
671.14 	provided in subdivisions 11 to 13, plans may include programs for efficient fuel-switching 
671.15 	improvements and load management. An individual utility program may combine elements 
671.16 	of energy conservation, load management, or efficient fuel-switching. The plan must estimate 
671.17 	the lifetime energy savings and cumulative lifetime energy savings projected to be achieved 
671.18 	under the plan. A plan filed by a public utility by June 1 must be approved or approved as 
671.19 	modified by the commissioner by December 1 of that same year.
671.20 	(c) The commissioner shall evaluate the plan on the basis of cost-effectiveness and the 
671.21 	reliability of technologies employed. The commissioner's order must provide to the extent 
671.22 	practicable for a free choice, by consumers participating in an energy conservation program, 
671.23 	of the device, method, material, or project constituting the energy conservation improvement 
671.24 	and for a free choice of the seller, installer, or contractor of the energy conservation 
671.25 	improvement, provided that the device, method, material, or project seller, installer, or 
671.26 	contractor is duly licensed, certified, approved, or qualified, including under the residential 
671.27 	conservation services program, where applicable.
671.28 	(d) The commissioner may require a utility subject to subdivision 1c to make an energy 
671.29 	conservation improvement investment or expenditure whenever the commissioner finds 
671.30 	that the improvement will result in energy savings at a total cost to the utility less than the 
671.31 	cost to the utility to produce or purchase an equivalent amount of new supply of energy.
671.32 	(e) Each public utility subject to this subdivision may spend and invest annually up to 
671.33 	ten percent of the total amount spent and invested that the public utility spends and invests
672.1 	on energy conservation, efficient fuel-switching, or load management improvements under 
672.2 	this section by the public utility on research and development projects that meet the applicable 
672.3 	definition of energy conservation, efficient fuel-switching, or load management improvement.
672.4 	(f) The commissioner shall consider and may require a public utility to undertake an 
672.5 	energy conservation program or efficient fuel-switching program, subject to the requirements 
672.6 	of subdivisions 11 and 12, that is suggested by an outside source, including a political 
672.7 	subdivision, a nonprofit corporation, or community organization. When approving a proposal 
672.8 	under this paragraph, the commissioner must consider the qualifications and experience of 
672.9 	the entity proposing the program and any other criteria the commissioner deems relevant.
672.10 	(g) A public utility, a political subdivision, or a nonprofit or community organization 
672.11 	that has suggested an energy conservation program, the attorney general acting on behalf 
672.12 	of consumers and small business interests, or a public utility customer that has suggested 
672.13 	an energy conservation program and is not represented by the attorney general under section 
672.14 	8.33 may petition the commission to modify or revoke a department decision under this 
672.15 	section, and the commission may do so if it determines that the energy conservation program 
672.16 	is not cost-effective, does not adequately address the residential conservation improvement 
672.17 	needs of low-income persons, has a long-range negative effect on one or more classes of 
672.18 	customers, or is otherwise not in the public interest. The commission shall reject a petition 
672.19 	that, on its face, fails to make a reasonable argument that an energy conservation program 
672.20 	is not in the public interest.
672.21 	(h) The commissioner may order a public utility to include, with the filing of the public 
672.22 	utility's annual status report, the results of an independent audit of the public utility's 
672.23 	conservation improvement programs and expenditures performed by the department or an 
672.24 	auditor with experience in the provision of energy conservation and energy efficiency 
672.25 	services approved by the commissioner and chosen by the public utility. The audit must 
672.26 	specify the energy savings or increased efficiency in the use of energy within the service 
672.27 	territory of the public utility that is the result of the public utility's spending and investments. 
672.28 	The audit must evaluate the cost-effectiveness of the public utility's conservation programs.
672.29 	(i) The energy conservation and optimization plan of each public utility subject to this 
672.30 	section must include activities to improve energy efficiency in public schools served by the 
672.31 	utility. As applicable to each public utility, at a minimum the activities must include programs 
672.32 	to increase the efficiency of the school's lighting and heating and cooling systems, and to 
672.33 	provide for building recommissioning, building operator training, and opportunities to 
672.34 	educate students, teachers, and staff regarding energy efficiency measures implemented at 
672.35 	the school.
673.1 	(j) The commissioner may require investments or spending greater than the amounts 
673.2 	proposed in a plan filed under this subdivision or section 216C.17 for a public utility whose 
673.3 	most recent advanced forecast required under section 216B.2422 projects a peak demand 
673.4 	deficit of 100 megawatts or more within five years under midrange forecast assumptions.
673.5 	(k) A public utility filing a conservation and optimization plan that includes an efficient 
673.6 	fuel-switching program to achieve the utility's energy savings goal must, as part of the filing, 
673.7 	demonstrate by a comparison of greenhouse gas emissions between the fuels that the 
673.8 	requirements of subdivisions 11 or 12 are met, as applicable, using a full fuel-cycle energy 
673.9 	analysis.

673.10 	Sec. 17. Minnesota Statutes 2022, section 216B.241, subdivision 11, is amended to read:
673.11 		Subd. 11.Programs for efficient fuel-switching improvements; electric utilities. (a) 
673.12 	A public utility providing electric service at retail may include in the plan required under 
673.13 	subdivision 2 a proposed goal for efficient fuel-switching improvements that the utility 
673.14 	expects to achieve under the plan and the programs to implement efficient fuel-switching 
673.15 	improvements or combinations of energy conservation improvements, fuel-switching 
673.16 	improvements, and load management. For each program, the public utility must provide a 
673.17 	proposed budget, an analysis of the program's cost-effectiveness, and estimated net energy 
673.18 	and demand savings.
673.19 	(b) The department may approve proposed programs for efficient fuel-switching 
673.20 	improvements if the department determines the improvements meet the requirements of 
673.21 	paragraph (d). For fuel-switching improvements that require the deployment of electric 
673.22 	technologies, the department must also consider whether the fuel-switching improvement 
673.23 	can be operated in a manner that facilitates the integration of variable renewable energy 
673.24 	into the electric system. The net benefits from an efficient fuel-switching improvement that 
673.25 	is integrated with an energy efficiency program approved under this section may be counted 
673.26 	toward the net benefits of the energy efficiency program, if the department determines the 
673.27 	primary purpose and effect of the program is energy efficiency.
673.28 	(c) A public utility may file a rate schedule with the commission that provides for annual 
673.29 	cost recovery of reasonable and prudent costs to implement and promote efficient 
673.30 	fuel-switching programs. The utility, department, or other entity may propose, and the 
673.31 	commission may not approve, modify, or reject, a proposal for a financial incentive to 
673.32 	encourage efficient fuel-switching programs operated by a public utility providing electric 
673.33 	service approved under this subdivision. When making a decision on the financial incentive 
674.1 	proposal, the commission must apply the considerations established in section 216B.16, 
674.2 	subdivision 6c, paragraphs (b) and (c).
674.3 	(d) A fuel-switching improvement is deemed efficient if, applying the technical criteria 
674.4 	established under section 216B.241, subdivision 1d, paragraph (e), the improvement meets 
674.5 	the following criteria, relative to the fuel that is being displaced:
674.6 	(1) results in a net reduction in the amount of source energy consumed for a particular 
674.7 	use, measured on a fuel-neutral basis, using (i) the utility's annual system average efficiency, 
674.8 	or (ii) if the utility elects, a seasonal, monthly, or more granular level of analysis for the 
674.9 	electric utility system over the measure's life;
674.10 	(2) results in a net reduction of statewide greenhouse gas emissions as defined in section 
674.11 	216H.01, subdivision 2, over the lifetime of the improvement. For an efficient fuel-switching 
674.12 	improvement installed by an electric utility, the reduction in emissions must be measured 
674.13 	based on the hourly emission profile of the electric utility, using the hourly emissions profile 
674.14 	in the most recent resource plan approved by the commission under section 216B.2422
674.15 	using (i) the utility's annual average emissions factor, or (ii) if the utility elects, a seasonal, 
674.16 	monthly or more granular level of analysis, for the electric utility system over the measure's 
674.17 	life; and
674.18 	(3) is cost-effective, considering the costs and benefits from the perspective of the utility, 
674.19 	participants, and society; and.
674.20 	(4) is installed and operated in a manner that improves the utility's system load factor.
674.21 	(e) For purposes of this subdivision, "source energy" means the total amount of primary 
674.22 	energy required to deliver energy services, adjusted for losses in generation, transmission, 
674.23 	and distribution, and expressed on a fuel-neutral basis.

674.24 	Sec. 18. Minnesota Statutes 2022, section 216B.241, subdivision 12, is amended to read:
674.25 		Subd. 12.Programs for efficient fuel-switching improvements; natural gas 
674.26 	utilities. (a) As part of a public utility's plan filed under subdivision 2, a public utility that 
674.27 	provides natural gas service to Minnesota retail customers may propose one or more programs 
674.28 	to install electric technologies that reduce the consumption of natural gas by the utility's 
674.29 	retail customers as an energy conservation improvement. The commissioner may approve 
674.30 	a proposed program if the commissioner, applying the technical criteria developed under 
674.31 	section 216B.241, subdivision 1d, paragraph (e), determines that:
674.32 	(1) the electric technology to be installed meets the criteria established under section 
674.33 	216B.241, subdivision 11, paragraph (d), clauses (1) and (2); and
675.1 	(2) the program is cost-effective, considering the costs and benefits to ratepayers, the 
675.2 	utility, participants, and society.
675.3 	(b) If a program is approved by the commission under this subdivision, the public utility 
675.4 	may count the program's energy savings toward its energy savings goal under section 
675.5 	216B.241, subdivision 1c. Notwithstanding section 216B.2402, subdivision 4, efficient 
675.6 	fuel-switching achieved through programs approved under this subdivision is energy 
675.7 	conservation.
675.8 	(c) A public utility may file rate schedules with the commission that provide annual 
675.9 	cost-recovery for programs approved by the department under this subdivision, including 
675.10 	reasonable and prudent costs to implement and promote the programs.
675.11 	(d) The commission may approve, modify, or reject a proposal made by the department 
675.12 	or a utility for an incentive plan to encourage efficient fuel-switching programs approved 
675.13 	under this subdivision, applying the considerations established under section 216B.16, 
675.14 	subdivision 6c, paragraphs (b) and (c). The commission may approve a financial incentive 
675.15 	mechanism that is calculated based on the combined energy savings and net benefits that 
675.16 	the commission has determined have been achieved by a program approved under this 
675.17 	subdivision, provided the commission determines that the financial incentive mechanism 
675.18 	is in the ratepayers' interest.
675.19 	(e) A public utility is not eligible for a financial incentive for an efficient fuel-switching 
675.20 	program under this subdivision in any year in which the utility achieves energy savings 
675.21 	below one percent of gross annual retail energy sales, excluding savings achieved through 
675.22 	fuel-switching programs.

675.23 	Sec. 19. Minnesota Statutes 2022, section 216B.2425, subdivision 1, is amended to read:
675.24 		Subdivision 1.List. The commission shall maintain a list of certified high-voltage 
675.25 	transmission line and grid enhancing technology projects.

675.26 	EFFECTIVE DATE. This section is effective June 1, 2025.

675.27 	Sec. 20. Minnesota Statutes 2022, section 216B.2425, is amended by adding a subdivision 
675.28 	to read:
675.29 		Subd. 1a.Definitions. (a) For the purposes of this section, the following terms have the 
675.30 	meanings given.
675.31 	(b) "Capacity" means the maximum amount of electricity that can flow through a 
675.32 	transmission line while observing industry safety standards.
676.1 	(c) "Congestion" means a condition in which a lack of transmission line capacity prevents 
676.2 	the delivery of the lowest-cost electricity dispatched to meet load at a specific location.
676.3 	(d) "Dynamic line rating" means hardware or software used to calculate the thermal 
676.4 	limit of existing transmission lines at a specific point in time by incorporating information 
676.5 	on real-time and forecasted weather conditions.
676.6 	(e) "Grid enhancing technology" means hardware or software that reduces congestion 
676.7 	or enhances the flexibility of the transmission system by increasing the capacity of a 
676.8 	high-voltage transmission line or rerouting electricity from overloaded to uncongested lines, 
676.9 	while maintaining industry safety standards. Grid enhancing technologies include but are 
676.10 	not limited to dynamic line rating, advanced power flow controllers, and topology 
676.11 	optimization.
676.12 	(f) "Power flow controller" means hardware and software used to reroute electricity 
676.13 	from overloaded transmission lines to underutilized transmission lines.
676.14 	(g) "Thermal limit" means the temperature a transmission line reaches when heat from 
676.15 	the electric current flow within the transmission line causes excessive sagging of the 
676.16 	transmission line.
676.17 	(h) "Topology optimization" means a software technology that uses mathematical models 
676.18 	to identify reconfigurations in the transmission grid in order to reroute electricity from 
676.19 	overloaded transmission lines to underutilized transmission lines.
676.20 	(i) "Transmission line" has the meaning given to "high-voltage transmission line" in 
676.21 	section 216I.02, subdivision 8.
676.22 	(j) "Transmission system" means a network of high-voltage transmission lines owned 
676.23 	or operated by an entity subject to this section that transports electricity to Minnesota 
676.24 	customers.

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

676.26 	Sec. 21. Minnesota Statutes 2022, section 216B.2425, subdivision 2, is amended to read:
676.27 		Subd. 2.List development; transmission and grid enhancing technology projects 
676.28 	report. (a) By November 1 of each odd-numbered year, a transmission projects report must 
676.29 	be submitted to the commission by each utility, organization, or company that:
676.30 	(1) is a public utility, a municipal utility, a cooperative electric association, the generation 
676.31 	and transmission organization that serves each utility or association, or a transmission 
676.32 	company; and
677.1 	(2) owns or operates electric transmission lines in Minnesota, except a company or 
677.2 	organization that owns a transmission line that serves a single customer or interconnects a 
677.3 	single generating facility.
677.4 	(b) The report may be submitted jointly or individually to the commission.
677.5 	(c) The report must:
677.6 	(1) list specific present and reasonably foreseeable future inadequacies in the transmission 
677.7 	system in Minnesota;
677.8 	(2) identify alternative means of addressing each inadequacy listed, including grid 
677.9 	enhancing technologies such as dynamic line rating, power flow controllers, topology 
677.10 	optimization, and other hardware or software that reduce congestion or enhance the flexibility 
677.11 	of the transmission system;
677.12 	(3) identify general economic, environmental, and social issues associated with each 
677.13 	alternative; and
677.14 	(4) provide a summary of public input related to the list of inadequacies and the role of 
677.15 	local government officials and other interested persons in assisting to develop the list and 
677.16 	analyze alternatives.
677.17 	(d) To meet the requirements of this subdivision, reporting parties may rely on available 
677.18 	information and analysis developed by a regional transmission organization or any subgroup 
677.19 	of a regional transmission organization and may develop and include additional information 
677.20 	as necessary.
677.21 	(e) In addition to providing the information required under this subdivision, a utility 
677.22 	operating under a multiyear rate plan approved by the commission under section 216B.16, 
677.23 	subdivision 19, shall identify in its report investments that it considers necessary to modernize 
677.24 	the transmission and distribution system by enhancing reliability, improving security against 
677.25 	cyber and physical threats, and by increasing energy conservation opportunities by facilitating 
677.26 	communication between the utility and its customers through the use of two-way meters, 
677.27 	control technologies, energy storage and microgrids, technologies to enable demand response, 
677.28 	and other innovative technologies.

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

677.30 	Sec. 22. Minnesota Statutes 2022, section 216B.2427, subdivision 1, is amended to read:
677.31 		Subdivision 1.Definitions. (a) For the purposes of this section and section 216B.2428, 
677.32 	the following terms have the meanings given.
678.1 	(b) "Biogas" means gas produced by the anaerobic digestion of biomass, gasification of 
678.2 	biomass, or other effective conversion processes.
678.3 	(c) "Carbon capture" means the capture of greenhouse gas emissions that would otherwise 
678.4 	be released into the atmosphere.
678.5 	(d) "Carbon-free resource" means an electricity generation facility whose operation does 
678.6 	not contribute to statewide greenhouse gas emissions, as defined in section 216H.01, 
678.7 	subdivision 2.
678.8 	(e) "Disadvantaged community" means a community in Minnesota that is:
678.9 	(1) defined as disadvantaged by the federal agency disbursing federal funds, when the 
678.10 	federal agency is providing funds for an innovative resource; or
678.11 	(2) an environmental justice area, as defined under section 216B.1691, subdivision 1.
678.12 	(e) (f) "District energy" means a heating or cooling system that is solar thermal powered 
678.13 	or that uses the constant temperature of the earth or underground aquifers as a thermal 
678.14 	exchange medium to heat or cool multiple buildings connected through a piping network.
678.15 	(f) (g) "Energy efficiency" has the meaning given in section 216B.241, subdivision 1, 
678.16 	paragraph (f), but does not include energy conservation investments that the commissioner 
678.17 	determines could reasonably be included in a utility's conservation improvement program.
678.18 	(g) (h) "Greenhouse gas emissions" means emissions of carbon dioxide, methane, nitrous 
678.19 	oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride emitted by 
678.20 	anthropogenic sources within Minnesota and from the generation of electricity imported 
678.21 	from outside the state and consumed in Minnesota, excluding carbon dioxide that is injected 
678.22 	into geological formations to prevent its release to the atmosphere in compliance with 
678.23 	applicable laws.
678.24 	(h) (i) "Innovative resource" means biogas, renewable natural gas, power-to-hydrogen, 
678.25 	power-to-ammonia, carbon capture, strategic electrification, district energy, and energy 
678.26 	efficiency.
678.27 	(i) (j) "Lifecycle greenhouse gas emissions" means the aggregate greenhouse gas 
678.28 	emissions resulting from the production, processing, transmission, and consumption of an 
678.29 	energy resource.
678.30 	(j) (k) "Lifecycle greenhouse gas emissions intensity" means lifecycle greenhouse gas 
678.31 	emissions per unit of energy delivered to an end user.
679.1 	(k) (l) "Nonexempt customer" means a utility customer that has not been included in a 
679.2 	utility's innovation plan under subdivision 3, paragraph (f).
679.3 	(l) (m) "Power-to-ammonia" means the production of ammonia from hydrogen produced 
679.4 	via power-to-hydrogen using a process that has a lower lifecycle greenhouse gas intensity 
679.5 	than does natural gas produced from conventional geologic sources.
679.6 	(m) (n) "Power-to-hydrogen" means the use of electricity generated by a carbon-free 
679.7 	resource to produce hydrogen.
679.8 	(n) (o) "Renewable energy" has the meaning given in section 216B.2422, subdivision 
679.9 	1.
679.10 	(o) (p) "Renewable natural gas" means biogas that has been processed to be 
679.11 	interchangeable with, and that has a lower lifecycle greenhouse gas intensity than, natural 
679.12 	gas produced from conventional geologic sources.
679.13 	(p) (q) "Solar thermal" has the meaning given to qualifying solar thermal project in 
679.14 	section 216B.2411, subdivision 2, paragraph (d).
679.15 	(q) (r) "Strategic electrification" means the installation of electric end-use equipment in 
679.16 	an existing building in which natural gas is a primary or back-up fuel source, or in a newly 
679.17 	constructed building in which a customer receives natural gas service for one or more 
679.18 	end-uses, provided that the electric end-use equipment:
679.19 	(1) results in a net reduction in statewide greenhouse gas emissions, as defined in section 
679.20 	216H.01, subdivision 2, over the life of the equipment when compared to the most efficient 
679.21 	commercially available natural gas alternative; and
679.22 	(2) is installed and operated in a manner that improves the load factor of the customer's 
679.23 	electric utility.
679.24 	Strategic electrification does not include investments that the commissioner determines 
679.25 	could reasonably be included in the natural gas utility's conservation improvement program 
679.26 	under section 216B.241.
679.27 	(s) "Thermal energy network" means a project that provides heating and cooling to 
679.28 	multiple buildings connected via underground piping containing fluids that, in concert with 
679.29 	heat pumps, exchange thermal energy from the earth, underground or surface waters, 
679.30 	wastewater, or other heat sources.
679.31 	(r) (t) "Total incremental cost" means the calculation of the following components of a 
679.32 	utility's innovation plan approved by the commission under subdivision 2:
680.1 	(1) the sum of:
680.2 	(i) return of and on capital investments for the production, processing, pipeline 
680.3 	interconnection, storage, and distribution of innovative resources;
680.4 	(ii) incremental operating costs associated with capital investments in infrastructure for 
680.5 	the production, processing, pipeline interconnection, storage, and distribution of innovative 
680.6 	resources;
680.7 	(iii) incremental costs to procure innovative resources from third parties;
680.8 	(iv) incremental costs to develop and administer programs; and
680.9 	(v) incremental costs for research and development related to innovative resources;
680.10 	(2) less the sum of:
680.11 	(i) value received by the utility upon the resale of innovative resources or innovative 
680.12 	resource by-products, including any environmental credits included with the resale of 
680.13 	renewable gaseous fuels or value received by the utility when innovative resources are used 
680.14 	as vehicle fuel;
680.15 	(ii) cost savings achieved through avoidance of purchases of natural gas produced from 
680.16 	conventional geologic sources, including but not limited to avoided commodity purchases 
680.17 	and avoided pipeline costs; and
680.18 	(iii) other revenues received by the utility that are directly attributable to the utility's 
680.19 	implementation of an innovation plan.
680.20 	(s) (u) "Utility" means a public utility, as defined in section 216B.02, subdivision 4, that 
680.21 	provides natural gas sales or natural gas transportation services to customers in Minnesota.

680.22 	Sec. 23. Minnesota Statutes 2022, section 216B.2427, is amended by adding a subdivision 
680.23 	to read:
680.24 		Subd. 9a.Thermal energy networks. Innovation plans filed after July 1, 2024, under 
680.25 	this section by a utility with more than 800,000 customers must include spending of at least 
680.26 	15 percent of the utility's proposed total incremental costs over the five-year term of the 
680.27 	proposed innovation plan for thermal energy networks projects. If the utility has developed 
680.28 	or is developing thermal energy network projects outside of an approved innovation plan, 
680.29 	the utility may apply the budget for the projects toward the 15 percent minimum requirement 
680.30 	without counting the costs against the limitations on utility customer costs under subdivision 
680.31 	3.

681.1 	Sec. 24. Minnesota Statutes 2023 Supplement, section 216C.08, is amended to read:
681.2 	216C.08 JURISDICTION.
681.3 	(a) The commissioner has sole authority and responsibility for the administration of 
681.4 	sections 216C.05 to 216C.30 and 216C.375 to administer this chapter. Other laws 
681.5 	notwithstanding, the authority granted to the commissioner shall supersede under this section 
681.6 	supersedes the authority given any other agency whenever overlapping, duplication, or 
681.7 	additional administrative or legal procedures might occur in the administration of sections 
681.8 	216C.05 to 216C.30 and 216C.375 administering this chapter. The commissioner shall 
681.9 	consult with other state departments or agencies in matters related to energy and shall 
681.10 	contract with them the other state departments or agencies to provide appropriate services 
681.11 	to effectuate the purposes of sections 216C.05 to 216C.30 and 216C.375 this chapter. Any 
681.12 	other department, agency, or official of this state or political subdivision thereof which 
681.13 	would in any way affect the administration or enforcement of sections 216C.05 to 216C.30
681.14 	and 216C.375 this chapter shall cooperate and coordinate all activities with the commissioner 
681.15 	to assure orderly and efficient administration and enforcement of sections 216C.05 to 
681.16 	216C.30 and 216C.375 this chapter.
681.17 	(b) The commissioner shall designate a liaison officer whose duty shall be to insure the 
681.18 	maximum possible consistency in procedures and to eliminate duplication between the 
681.19 	commissioner and the other agencies that may be involved in energy.

681.20 	Sec. 25. Minnesota Statutes 2023 Supplement, section 216C.09, is amended to read:
681.21 	216C.09 COMMISSIONER DUTIES.
681.22 	(a) The commissioner shall:
681.23 	(1) manage the department as the central repository within the state government for the 
681.24 	collection of data on energy;
681.25 	(2) prepare and adopt an emergency allocation plan specifying actions to be taken in the 
681.26 	event of an impending serious shortage of energy, or a threat to public health, safety, or 
681.27 	welfare;
681.28 	(3) undertake a continuing assessment of trends in the consumption of all forms of energy 
681.29 	and analyze the social, economic, and environmental consequences of these trends;
681.30 	(4) carry out energy conservation measures as specified by the legislature and recommend 
681.31 	to the governor and the legislature additional energy policies and conservation measures as 
681.32 	required to meet the objectives of sections 216C.05 to 216C.30 and 216C.375 this chapter;
682.1 	(5) collect and analyze data relating to present and future demands and resources for all 
682.2 	sources of energy;
682.3 	(6) evaluate policies governing the establishment of rates and prices for energy as related 
682.4 	to energy conservation, and other goals and policies of sections 216C.05 to 216C.30 and 
682.5 	216C.375 this chapter, and make recommendations for changes in energy pricing policies 
682.6 	and rate schedules;
682.7 	(7) study the impact and relationship of the state energy policies to international, national, 
682.8 	and regional energy policies;
682.9 	(8) design and implement a state program for the conservation of energy; this program 
682.10 	shall include but not be limited to, general commercial, industrial, and residential, and 
682.11 	transportation areas; such program shall also provide for the evaluation of energy systems 
682.12 	as they relate to lighting, heating, refrigeration, air conditioning, building design and 
682.13 	operation, and appliance manufacturing and operation;
682.14 	(9) inform and educate the public about the sources and uses of energy and the ways in 
682.15 	which persons can conserve energy;
682.16 	(10) dispense funds made available for the purpose of research studies and projects of 
682.17 	professional and civic orientation, which are related to either energy conservation, resource 
682.18 	recovery, or the development of alternative energy technologies which conserve 
682.19 	nonrenewable energy resources while creating minimum environmental impact;
682.20 	(11) charge other governmental departments and agencies involved in energy-related 
682.21 	activities with specific information gathering goals and require that those goals be met;
682.22 	(12) design a comprehensive program for the development of indigenous energy 
682.23 	resources. The program shall include, but not be limited to, providing technical, 
682.24 	informational, educational, and financial services and materials to persons, businesses, 
682.25 	municipalities, and organizations involved in the development of solar, wind, hydropower, 
682.26 	peat, fiber fuels, biomass, and other alternative energy resources. The program shall be 
682.27 	evaluated by the alternative energy technical activity; and
682.28 	(13) dispense loans, grants, or other financial aid from money received from litigation 
682.29 	or settlement of alleged violations of federal petroleum-pricing regulations made available 
682.30 	to the department for that purpose.
682.31 	(b) Further, the commissioner may participate fully in hearings before the Public Utilities 
682.32 	Commission on matters pertaining to rate design, cost allocation, efficient resource utilization, 
682.33 	utility conservation investments, small power production, cogeneration, and other rate issues. 
683.1 	The commissioner shall support the policies stated in section 216C.05 and shall prepare 
683.2 	and defend testimony proposed to encourage energy conservation improvements as defined 
683.3 	in section 216B.241.

683.4 	Sec. 26. Minnesota Statutes 2022, section 216C.10, is amended to read:
683.5 	216C.10 COMMISSIONER POWERS.
683.6 	(a) The commissioner may:
683.7 	(1) adopt rules under chapter 14 as necessary to carry out the purposes of sections 
683.8 	216C.05 to 216C.30 this chapter;
683.9 	(2) make all contracts under sections 216C.05 to 216C.30 this chapter and do all things 
683.10 	necessary to cooperate with the United States government, and to qualify for, accept, and 
683.11 	disburse any grant intended for the administration of sections 216C.05 to 216C.30 to 
683.12 	administer this chapter;
683.13 	(3) provide on-site technical assistance to units of local government in order to enhance 
683.14 	local capabilities for dealing with energy problems;
683.15 	(4) administer for the state, energy programs under federal law, regulations, or guidelines, 
683.16 	and coordinate the programs and activities with other state agencies, units of local 
683.17 	government, and educational institutions;
683.18 	(5) develop a state energy investment plan with yearly energy conservation and alternative 
683.19 	energy development goals, investment targets, and marketing strategies;
683.20 	(6) perform market analysis studies relating to conservation, alternative and renewable 
683.21 	energy resources, and energy recovery;
683.22 	(7) assist with the preparation of proposals for innovative conservation, renewable, 
683.23 	alternative, or energy recovery projects;
683.24 	(8) manage and disburse funds made available for the purpose of research studies or 
683.25 	demonstration projects related to energy conservation or other activities deemed appropriate 
683.26 	by the commissioner;
683.27 	(9) intervene in certificate of need proceedings before the Public Utilities Commission;
683.28 	(10) collect fees from recipients of loans, grants, or other financial aid from money 
683.29 	received from litigation or settlement of alleged violations of federal petroleum-pricing 
683.30 	regulations, which fees must be used to pay the department's costs in administering those 
683.31 	financial aids; and
684.1 	(11) collect fees from proposers and operators of conservation and other energy-related 
684.2 	programs that are reviewed, evaluated, or approved by the department, other than proposers 
684.3 	that are political subdivisions or community or nonprofit organizations, to cover the 
684.4 	department's cost in making the reviewal, evaluation, or approval and in developing additional 
684.5 	programs for others to operate.
684.6 	(b) Notwithstanding any other law, the commissioner is designated the state agent to 
684.7 	apply for, receive, and accept federal or other funds made available to the state for the 
684.8 	purposes of sections 216C.05 to 216C.30 this chapter.

684.9 	Sec. 27. Minnesota Statutes 2023 Supplement, section 216C.331, subdivision 1, is amended 
684.10 	to read:
684.11 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
684.12 	the meanings given.
684.13 	(b) "Aggregated customer energy use data" means customer energy use data that is 
684.14 	combined into one collective data point per time interval. Aggregated customer energy use 
684.15 	data is data with any unique identifiers or other personal information removed that a 
684.16 	qualifying utility collects and aggregates in at least monthly intervals for an entire building 
684.17 	on a covered property.
684.18 	(c) "Benchmark" means to electronically input into a benchmarking tool the total whole 
684.19 	building energy use data and other descriptive information about a building that is required 
684.20 	by a benchmarking tool.
684.21 	(d) "Benchmarking information" means data related to a building's energy use generated 
684.22 	by a benchmarking tool, and other information about the building's physical and operational 
684.23 	characteristics. Benchmarking information includes but is not limited to the building's:
684.24 	(1) address;
684.25 	(2) owner and, if applicable, the building manager responsible for operating the building's 
684.26 	physical systems;
684.27 	(3) total floor area, expressed in square feet;
684.28 	(4) energy use intensity;
684.29 	(5) greenhouse gas emissions; and
684.30 	(6) energy performance score comparing the building's energy use with that of similar 
684.31 	buildings.
685.1 	(e) "Benchmarking tool" means the United States Environmental Protection Agency's 
685.2 	Energy Star Portfolio Manager tool or an equivalent tool determined by the commissioner.
685.3 	(f) "Covered property" means any property that is served by an investor-owned utility 
685.4 	in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington County, or in any city 
685.5 	outside the metropolitan area with a population of over 50,000 residents, as determined by 
685.6 	the Minnesota State Demographic Center, served by a municipal energy utility or 
685.7 	investor-owned utility, and that has one or more buildings containing in sum 50,000 gross 
685.8 	square feet or greater. Covered property does not include:
685.9 	(1) a residential property containing fewer than five dwelling units;
685.10 	(2) a property that is: (i) classified as manufacturing under the North American Industrial 
685.11 	Classification System; (ii) an energy-intensive trade-exposed customer, as defined in section 
685.12 	216B.1696; (iii) an electric power generation facility; (iv) a mining facility; or (v) an 
685.13 	industrial building otherwise incompatible with benchmarking in the benchmarking tool, 
685.14 	as determined by the commissioner;
685.15 	(3) an agricultural building;
685.16 	(4) a multitenant building that is served by a utility that cannot supply is not supplying
685.17 	aggregated customer usage data under subdivision 8 or is not using a customer usage data 
685.18 	aggregation program to supply aggregated customer usage data to the benchmarking tool; 
685.19 	or
685.20 	(5) other property types that do not meet the purposes of this section, as determined by 
685.21 	the commissioner.
685.22 	(g) "Customer energy use data" means data collected from utility customer meters that 
685.23 	reflect the quantity, quality, or timing of customers' energy use.
685.24 	(h) "Energy" means electricity, natural gas, steam, or another product used to: (1) provide 
685.25 	heating, cooling, lighting, or water heating; or (2) power other end uses in a building.
685.26 	(i) "Energy performance score" means a numerical value from one to 100 that the Energy 
685.27 	Star Portfolio Manager tool calculates to rate a building's energy efficiency against that of 
685.28 	comparable buildings nationwide.
685.29 	(j) "Energy Star Portfolio Manager" means an interactive resource management tool 
685.30 	developed by the United States Environmental Protection Agency that (1) enables the 
685.31 	periodic entry of a building's energy use data and other descriptive information about a 
685.32 	building, and (2) rates a building's energy efficiency against that of comparable buildings 
685.33 	nationwide.
686.1 	(k) "Energy use intensity" means the total annual energy consumed in a building divided 
686.2 	by the building's total floor area.
686.3 	(l) "Financial distress" means a covered property that, at the time benchmarking is 
686.4 	conducted:
686.5 	(1) is the subject of a qualified tax lien sale or public auction due to property tax 
686.6 	arrearages;
686.7 	(2) is controlled by a court-appointed receiver based on financial distress;
686.8 	(3) is owned by a financial institution through default by the borrower;
686.9 	(4) has been acquired by deed in lieu of foreclosure; or
686.10 	(5) has a senior mortgage that is subject to a notice of default.
686.11 	(m) "Local government" means a statutory or home rule municipality or county.
686.12 	(n) "Owner" means:
686.13 	(1) an individual or entity that possesses title to a covered property; or
686.14 	(2) an agent authorized to act on behalf of the covered property owner.
686.15 	(o) "Qualifying utility" means a utility serving the covered property, including:
686.16 	(1) an electric or gas utility, including:
686.17 	(i) an investor-owned electric or gas utility serving customers in Anoka, Carver, Dakota, 
686.18 	Hennepin, Ramsey, Scott, or Washington County, or in any city outside the metropolitan 
686.19 	area with a population of over 50,000 residents, as determined by the Minnesota State 
686.20 	Demographic Center, and serving properties with one or more buildings containing in sum 
686.21 	50,000 gross square feet or greater; or
686.22 	(ii) a municipally owned electric or gas utility serving customers in any city with a 
686.23 	population of over 50,000 residents, as determined by the Minnesota State Demographic 
686.24 	Center, and serving properties with one or more buildings containing in sum 50,000 gross 
686.25 	square feet or greater;
686.26 	(2) a natural gas supplier with five or more active commercial connections, accounts, 
686.27 	or customers in the state and serving customers in Anoka, Carver, Dakota, Hennepin, 
686.28 	Ramsey, Scott, or Washington County, or in any city outside the metropolitan area with a 
686.29 	population of over 50,000 residents, as determined by the Minnesota State Demographic 
686.30 	Center, and serving properties with one or more buildings containing in sum 50,000 gross 
686.31 	square feet or greater; or
687.1 	(3) a district steam, hot water, or chilled water provider serving customers in Anoka, 
687.2 	Carver, Dakota, Hennepin, Ramsey, Scott, or Washington County, or in any city outside 
687.3 	the metropolitan area with a population of over 50,000 residents, as determined by the 
687.4 	Minnesota State Demographic Center, and serving properties with one or more buildings 
687.5 	containing in sum 50,000 gross square feet or greater.
687.6 	(p) "Tenant" means a person that occupies or holds possession of a building or part of 
687.7 	a building or premises pursuant to a lease agreement.
687.8 	(q) "Total floor area" means the sum of gross square footage inside a building's envelope, 
687.9 	measured between the outside exterior walls of the building. Total floor area includes covered 
687.10 	parking structures.
687.11 	(r) "Utility customer" means the building owner or tenant listed on the utility's records 
687.12 	as the customer liable for payment of the utility service or additional charges assessed on 
687.13 	the utility account.
687.14 	(s) "Whole building energy use data" means all energy consumed in a building, whether 
687.15 	purchased from a third party or generated at the building site or from any other source.

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

687.17 	Sec. 28. Minnesota Statutes 2022, section 216C.435, subdivision 3a, is amended to read:
687.18 		Subd. 3a.Cost-effective Energy improvements. "Cost-effective Energy improvements" 
687.19 	means:
687.20 	(1) any new construction, renovation, or retrofitting of qualifying commercial real 
687.21 	property to improve energy efficiency that: (i) is permanently affixed to the property,; and 
687.22 	(ii) results in a net reduction in energy consumption without altering the principal source 
687.23 	of energy, and has been identified or greenhouse gas emissions, as documented in an energy 
687.24 	audit as repaying the purchase and installation costs in 20 years or less, based on the amount 
687.25 	of future energy saved and estimated future energy prices or emissions avoided;
687.26 	(2) any renovation or retrofitting of qualifying residential real property that is permanently 
687.27 	affixed to the property and is eligible to receive an incentive through a program offered by 
687.28 	the electric or natural gas utility that provides service under section 216B.241 to the property 
687.29 	or is otherwise determined to be a cost-effective an eligible energy improvement by the 
687.30 	commissioner under section 216B.241, subdivision 1d, paragraph (a);
687.31 	(3) permanent installation of new or upgraded electrical circuits and related equipment 
687.32 	to enable electrical vehicle charging; or
688.1 	(4) a solar voltaic or solar thermal energy system attached to, installed within, or 
688.2 	proximate to a building that generates electrical or thermal energy from a renewable energy 
688.3 	source that has been identified documented in an energy audit or renewable energy system 
688.4 	feasibility study as repaying their purchase and installation costs in 20 years or less, based 
688.5 	on the amount of future energy saved and estimated future energy prices, along with the 
688.6 	estimated amount of related renewable energy production.

688.7 	Sec. 29. Minnesota Statutes 2022, section 216C.435, subdivision 3b, is amended to read:
688.8 		Subd. 3b.Commercial PACE loan contractor. "Commercial PACE loan contractor" 
688.9 	means a person or entity that installs cost-effective energy eligible improvements financed 
688.10 	under a commercial PACE loan program.

688.11 	Sec. 30. Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision 
688.12 	to read:
688.13 		Subd. 3e.Eligible improvement. "Eligible improvement" means one or more energy 
688.14 	improvements, resiliency improvements, or water improvements made to qualifying real 
688.15 	property.

688.16 	Sec. 31. Minnesota Statutes 2022, section 216C.435, subdivision 4, is amended to read:
688.17 		Subd. 4.Energy audit. "Energy audit" means a formal evaluation of the energy 
688.18 	consumption of a building by a certified energy auditor, whose certification is approved by 
688.19 	the commissioner, for the purpose of identifying appropriate energy improvements that 
688.20 	could be made to the building and including an estimate of the length of time a specific 
688.21 	energy improvement will take to repay its purchase and installation costs, based on the 
688.22 	amount of energy saved and estimated future energy prices effective useful life, the reduction 
688.23 	of energy consumption, and the related avoided greenhouse gas emissions resulting from 
688.24 	the proposed eligible improvements.

688.25 	Sec. 32. Minnesota Statutes 2023 Supplement, section 216C.435, subdivision 8, is amended 
688.26 	to read:
688.27 		Subd. 8.Qualifying commercial real property. "Qualifying commercial real property" 
688.28 	means a multifamily residential dwelling, a commercial or industrial building, or farmland, 
688.29 	as defined in section 216C.436, subdivision 1b, that the implementing entity has determined, 
688.30 	after review of an energy audit, renewable energy system feasibility study, water 
688.31 	improvement study, resiliency improvement study, or agronomic assessment, as defined in 
689.1 	section 216C.436, subdivision 1b, can benefit from the installation of cost-effective energy
689.2 	installing eligible improvements or land and water improvements, as defined in section 
689.3 	216C.436, subdivision 1b. Qualifying commercial real property includes new construction.

689.4 	Sec. 33. Minnesota Statutes 2022, section 216C.435, subdivision 10, is amended to read:
689.5 		Subd. 10.Renewable energy system feasibility study. "Renewable energy system 
689.6 	feasibility study" means a written study, conducted by a contractor trained to perform that 
689.7 	analysis, for the purpose of determining the feasibility of installing a renewable energy 
689.8 	system in a building, including an estimate of the length of time a specific effective useful 
689.9 	life, the production of renewable energy, and any related avoided greenhouse gas emissions 
689.10 	of the proposed renewable energy system will take to repay its purchase and installation 
689.11 	costs, based on the amount of energy saved and estimated future energy prices. For a 
689.12 	geothermal energy improvement, the feasibility study must calculate net savings in terms 
689.13 	of nongeothermal energy and costs.

689.14 	Sec. 34. Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision 
689.15 	to read:
689.16 		Subd. 11a.Resiliency improvement. "Resiliency improvement" means one or more 
689.17 	installations or modifications to eligible commercial real property that are designed to 
689.18 	improve a property's resiliency by improving the eligible real property's:
689.19 	(1) structural integrity for seismic events;
689.20 	(2) indoor air quality;
689.21 	(3) durability to resist wind, fire, and flooding;
689.22 	(4) ability to withstand an electric power outage;
689.23 	(5) stormwater control measures, including structural and nonstructural measures to 
689.24 	mitigate stormwater runoff;
689.25 	(6) ability to mitigate the impacts of extreme temperatures; or
689.26 	(7) ability to mitigate greenhouse gas embodied emissions from the eligible real property.

690.1 	Sec. 35. Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision 
690.2 	to read:
690.3 		Subd. 11b.Resiliency improvement feasibility study. "Resiliency improvement 
690.4 	feasibility study" means a written study, conducted by a contractor trained to perform the 
690.5 	analysis, that:
690.6 	(1) determines the feasibility of installing a resiliency improvement;
690.7 	(2) documents the improved resiliency capabilities of the property; and
690.8 	(3) estimates the effective useful life of the proposed resiliency improvements.

690.9 	Sec. 36. Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision 
690.10 	to read:
690.11 		Subd. 14.Water improvement. "Water improvement" means one or more installations 
690.12 	or modifications to qualifying commercial real property that are designed to improve water 
690.13 	efficiency or water quality by:
690.14 	(1) reducing water consumption;
690.15 	(2) improving the quality, potability, or safety of water for the qualifying property; or
690.16 	(3) conserving or remediating water, in whole or in part, on qualifying real property.

690.17 	Sec. 37. Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision 
690.18 	to read:
690.19 		Subd. 15.Water improvement feasibility study. "Water improvement feasibility study" 
690.20 	means a written study, conducted by a contractor trained to perform the analysis, that:
690.21 	(1) determines the appropriate water improvements that could be made to the building; 
690.22 	and
690.23 	(2) estimates the effective useful life, the reduction of water consumption, and any 
690.24 	improvement in water quality resulting from the proposed water improvements.

690.25 	Sec. 38. Minnesota Statutes 2022, section 216C.436, subdivision 1, is amended to read:
690.26 		Subdivision 1.Program purpose and authority. An implementing entity may establish 
690.27 	a commercial PACE loan program to finance cost-effective energy, water, and resiliency
690.28 	improvements to enable owners of qualifying commercial real property to pay for the 
690.29 	cost-effective energy eligible improvements to the qualifying real property with the net 
690.30 	proceeds and interest earnings of revenue bonds authorized in this section. An implementing 
691.1 	entity may limit the number of qualifying commercial real properties for which a property 
691.2 	owner may receive program financing.

691.3 	Sec. 39. Minnesota Statutes 2023 Supplement, section 216C.436, subdivision 1b, is 
691.4 	amended to read:
691.5 		Subd. 1b.Definitions. (a) For the purposes of this section, the following terms have the 
691.6 	meanings given.
691.7 	(b) "Agronomic assessment" means a study by an independent third party that assesses 
691.8 	the environmental impacts of proposed land and water improvements on farmland.
691.9 	(c) "Farmland" means land classified as 2a, 2b, or 2c for property tax purposes under 
691.10 	section 273.13, subdivision 23.
691.11 	(d) "Land and water improvement" means:
691.12 	(1) an improvement to farmland that:
691.13 	(i) is permanent;
691.14 	(ii) results in improved agricultural profitability or resiliency;
691.15 	(iii) reduces the environmental impact of agricultural production; and
691.16 	(iv) if the improvement affects drainage, complies with the most recent versions of the 
691.17 	applicable following conservation practice standards issued by the United States Department 
691.18 	of Agriculture's Natural Resources Conservation Service: Drainage Water Management 
691.19 	(Code 554), Saturated Buffer (Code 604), Denitrifying Bioreactor (Code 605), and 
691.20 	Constructed Wetland (Code 656); or
691.21 	(2) water conservation and quality measures, which include permanently affixed 
691.22 	equipment, appliances, or improvements that reduce a property's water consumption or that 
691.23 	enable water to be managed more efficiently.
691.24 	(e) "Resiliency" means:
691.25 	(1) the ability of farmland to maintain and enhance profitability, soil health, and water 
691.26 	quality.;
691.27 	(2) the ability to mitigate greenhouse gas embodied emissions from an eligible real 
691.28 	property; or
691.29 	(3) an increase in building resilience through flood mitigation, stormwater management, 
691.30 	wildfire and wind resistance, energy storage use, or microgrid use.

692.1 	Sec. 40. Minnesota Statutes 2023 Supplement, section 216C.436, subdivision 2, is amended 
692.2 	to read:
692.3 		Subd. 2.Program requirements. A commercial PACE loan program must:
692.4 	(1) impose requirements and conditions on financing arrangements to ensure timely 
692.5 	repayment;
692.6 	(2) require an energy audit, renewable energy system feasibility study, resiliency 
692.7 	improvement study, water improvement study, or agronomic or soil health assessment to 
692.8 	be conducted on the qualifying commercial real property and reviewed by the implementing 
692.9 	entity prior to approval of the financing;
692.10 	(3) require the inspection or verification of all installations and a performance verification 
692.11 	of at least ten percent of the cost-effective energy eligible improvements or land and water 
692.12 	improvements financed by the program;
692.13 	(4) not prohibit the financing of all cost-effective energy eligible improvements or land 
692.14 	and water improvements not otherwise prohibited by this section;
692.15 	(5) require that all cost-effective energy eligible improvements or land and water 
692.16 	improvements be made to a qualifying commercial real property prior to, or in conjunction 
692.17 	with, an applicant's repayment of financing for cost-effective energy eligible improvements 
692.18 	or land and water improvements for that the qualifying commercial real property;
692.19 	(6) have cost-effective energy eligible improvements or land and water improvements 
692.20 	financed by the program performed by a licensed contractor as required by chapter 326B
692.21 	or other law or ordinance;
692.22 	(7) require disclosures in the loan document to borrowers by the implementing entity 
692.23 	of: (i) the risks involved in borrowing, including the risk of foreclosure if a tax delinquency 
692.24 	results from a default; and (ii) all the terms and conditions of the commercial PACE loan 
692.25 	and the installation of cost-effective energy eligible improvements or land and water 
692.26 	improvements, including the interest rate being charged on the loan;
692.27 	(8) provide financing only to those who demonstrate an ability to repay;
692.28 	(9) not provide financing for a qualifying commercial real property in which the owner 
692.29 	is not current on mortgage or real property tax payments;
692.30 	(10) require a petition to the implementing entity by all owners of the qualifying 
692.31 	commercial real property requesting collections of repayments as a special assessment under 
692.32 	section 429.101;
693.1 	(11) provide that payments and assessments are not accelerated due to a default and that 
693.2 	a tax delinquency exists only for assessments not paid when due;
693.3 	(12) require that liability for special assessments related to the financing runs with the 
693.4 	qualifying commercial real property; and
693.5 	(13) prior to financing any improvements to or imposing any assessment upon qualifying 
693.6 	commercial real property, require notice to and written consent from the mortgage lender 
693.7 	of any mortgage encumbering or otherwise secured by the qualifying commercial real 
693.8 	property.

693.9 	Sec. 41. Minnesota Statutes 2022, section 216C.436, subdivision 4, is amended to read:
693.10 		Subd. 4.Financing terms. Financing provided under this section must have:
693.11 	(1) a cost-weighted average maturity not exceeding the useful life of the energy eligible
693.12 	improvements installed, as determined by the implementing entity, but in no event may a 
693.13 	term exceed 20 30 years;
693.14 	(2) a principal amount not to exceed the lesser of:
693.15 	(i) the greater of 20 30 percent of the assessed value of the real property on which the 
693.16 	improvements are to be installed or 20 30 percent of the real property's appraised value, 
693.17 	accepted or approved by the mortgage lender; or
693.18 	(ii) the actual cost of installing the energy eligible improvements, including the costs of 
693.19 	necessary equipment, materials, and labor,; the costs of each related energy audit or,
693.20 	renewable energy system feasibility study, water improvement study, or resiliency 
693.21 	improvement study; and the cost of verification of installation; and
693.22 	(3) an interest rate sufficient to pay the financing costs of the program, including the 
693.23 	issuance of bonds and any financing delinquencies.

693.24 	Sec. 42. Minnesota Statutes 2022, section 216C.436, subdivision 7, is amended to read:
693.25 		Subd. 7.Repayment. An implementing entity that finances an energy eligible
693.26 	improvement under this section must:
693.27 	(1) secure payment with a lien against the qualifying commercial real property; and
693.28 	(2) collect repayments as a special assessment as provided for in section 429.101 or by 
693.29 	charter, provided that special assessments may be made payable in up to 20 30 equal annual 
693.30 	installments.
694.1 	If the implementing entity is an authority, the local government that authorized the 
694.2 	authority to act as implementing entity shall impose and collect special assessments necessary 
694.3 	to pay debt service on bonds issued by the implementing entity under subdivision 8, and 
694.4 	shall transfer all collections of the assessments upon receipt to the authority.

694.5 	Sec. 43. Minnesota Statutes 2022, section 216C.436, subdivision 8, is amended to read:
694.6 		Subd. 8.Bond issuance; repayment. (a) An implementing entity may issue revenue 
694.7 	bonds as provided in chapter 475 for the purposes of this section and section 216C.437, 
694.8 	provided the revenue bond must not be payable more than 20 30 years from the date of 
694.9 	issuance.
694.10 	(b) The bonds must be payable as to both principal and interest solely from the revenues 
694.11 	from the assessments established in subdivision 7 and section 216C.437, subdivision 28.
694.12 	(c) No holder of bonds issued under this subdivision may compel any exercise of the 
694.13 	taxing power of the implementing entity that issued the bonds to pay principal or interest 
694.14 	on the bonds, and if the implementing entity is an authority, no holder of the bonds may 
694.15 	compel any exercise of the taxing power of the local government. Bonds issued under this 
694.16 	subdivision are not a debt or obligation of the issuer or any local government that issued 
694.17 	them, nor is the payment of the bonds enforceable out of any money other than the revenue 
694.18 	pledged to the payment of the bonds.

694.19 	Sec. 44. Minnesota Statutes 2022, section 216C.436, subdivision 10, is amended to read:
694.20 		Subd. 10.Improvements; real property or fixture. A cost-effective energy An eligible
694.21 	improvement financed under a PACE loan program, including all equipment purchased in 
694.22 	whole or in part with loan proceeds under a loan program, is deemed real property or a 
694.23 	fixture attached to the real property.

694.24 	Sec. 45. [216C.47] GEOTHERMAL PLANNING GRANTS.
694.25 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
694.26 	the meanings given.
694.27 	(b) "Eligible applicant" means a county, city, town, or the Metropolitan Council.
694.28 	(c) "Geothermal energy system" means a system that heats and cools one or more 
694.29 	buildings by using the constant temperature of the earth as both a heat source and heat sink, 
694.30 	and a heat exchanger consisting of an underground closed loop system of piping containing 
694.31 	a liquid to absorb and relinquish heat within the earth. Geothermal energy system includes:
695.1 	(1) a bored geothermal heat exchanger, as defined in section 103I.005;
695.2 	(2) a groundwater thermal exchange device, as defined in section 103I.005; and
695.3 	(3) a submerged closed loop heat exchanger, as defined in section 103I.005.
695.4 		Subd. 2.Establishment. A geothermal planning grant program is established in the 
695.5 	department to provide financial assistance to eligible applicants to examine the technical 
695.6 	and economic feasibility of installing geothermal energy systems.
695.7 		Subd. 3.Account established. (a) The geothermal planning grant account is established 
695.8 	as a separate account in the special revenue fund in the state treasury. The commissioner 
695.9 	must credit to the account appropriations and transfers to the account. Earnings, including 
695.10 	interest, dividends, and any other earnings arising from assets of the account, must be 
695.11 	credited to the account. Money remaining in the account at the end of a fiscal year does not 
695.12 	cancel to the general fund, but remains in the account until June 30, 2029. The commissioner 
695.13 	must manage the account.
695.14 	(b) Money in the account is appropriated to the commissioner to (1) award geothermal 
695.15 	planning grants to eligible applicants, and (2) reimburse the reasonable costs incurred by 
695.16 	the department to administer this section.
695.17 		Subd. 4.Application process. An applicant seeking a grant under this section must 
695.18 	submit an application to the commissioner on a form developed by the commissioner. The 
695.19 	commissioner must develop administrative procedures to govern the application and grant 
695.20 	award process. The commissioner may contract with a third party to conduct some or all of 
695.21 	the program's operations.
695.22 		Subd. 5.Grant awards. (a) A grant awarded under this process may be used to pay the 
695.23 	total cost of the activities eligible for funding under subdivision 6, up to a limit of $150,000.
695.24 	(b) The commissioner must endeavor to award grants to eligible applicants in all regions 
695.25 	of Minnesota.
695.26 	(c) Grants may be awarded under this section only to projects whose work is completed 
695.27 	after July 1, 2024.
695.28 		Subd. 6.Eligible grant expenditures. Activities that may be funded with a grant awarded 
695.29 	under this section include:
695.30 	(1) analysis of the heating and cooling demand of the building or buildings that consume 
695.31 	energy from the geothermal energy system;
696.1 	(2) evaluation of equipment that could be combined with a geothermal energy system 
696.2 	to meet the building's heating and cooling requirements;
696.3 	(3) analysis of the geologic conditions of the earth in which a geothermal energy system 
696.4 	operates, including the drilling of one or more test wells to characterize geologic materials 
696.5 	and to measure properties of the earth and aquifers that impact the feasibility of installing 
696.6 	and operating a geothermal energy system; and
696.7 	(4) preparation of a financial analysis of the project.
696.8 		Subd. 7.Contractor and subcontractor requirements. Contractors and subcontractors 
696.9 	that perform work funded with a grant awarded under this section must have experience 
696.10 	installing geothermal energy systems.

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

696.12 	Sec. 46. [216C.48] STANDARDIZED SOLAR PLAN REVIEW SOFTWARE; 
696.13 	TECHNICAL ASSISTANCE; FINANCIAL INCENTIVE.
696.14 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
696.15 	the meanings given.
696.16 	(b) "Energy storage system" has the meaning given in section 216B.2422, subdivision 
696.17 	1.
696.18 	(c) "Permitting authority" means a unit of local government in Minnesota that has 
696.19 	authority to review and issue permits to install residential solar projects and solar plus energy 
696.20 	storage system projects within the unit of local government's jurisdiction.
696.21 	(d) "Photovoltaic device" has the meaning given in section 216C.06, subdivision 16.
696.22 	(e) "Residential solar project" means the installation of a photovoltaic device at a 
696.23 	residence located in Minnesota.
696.24 	(f) "SolarAPP+" means the most recent version of the Solar Automated Permit Processing 
696.25 	Plus software, developed by the National Renewable Energy Laboratory and available free 
696.26 	to permitting authorities from the United States Department of Energy, that uses a web-based 
696.27 	portal to automate the solar project plan review and permit issuance processes for residential 
696.28 	solar projects that are compliant with applicable building and electrical codes.
696.29 	(g) "Solar plus energy storage system project" means a residential solar project installed 
696.30 	in conjunction with an energy storage system at the same residence.
697.1 		Subd. 2.Program establishment. A program is established in the department to provide 
697.2 	technical assistance and financial incentives to local units of government that issue permits 
697.3 	for residential solar projects and solar plus energy storage system projects in order to 
697.4 	incentivize a permitting authority to adopt the SolarAPP+ software to standardize, automate, 
697.5 	and streamline the review and permitting process.
697.6 		Subd. 3.Eligibility. An incentive may be awarded under this section to a permitting 
697.7 	authority that has deployed SolarAPP+ and made SolarAPP+ available on the permitting 
697.8 	authority's website.
697.9 		Subd. 4.Application. (a) A permitting authority must submit an application for a financial 
697.10 	incentive under this section to the commissioner on a form developed by the commissioner.
697.11 	(b) An application may be submitted for a financial incentive under this section after 
697.12 	SolarAPP+ has become operational in the permitting authority's jurisdiction.
697.13 		Subd. 5.Review and grant award process. The commissioner must develop 
697.14 	administrative procedures to govern the application review and incentive award process 
697.15 	under this section.
697.16 		Subd. 6.Incentive awards. Beginning no later than March 1, 2025, the commissioner 
697.17 	may award a financial incentive to a permitting authority under this section only if the 
697.18 	commissioner has determined that the permitting authority meets verification requirements 
697.19 	established by the commissioner that ensure a permitting authority has made SolarAPP+ 
697.20 	operational within the permitting authority's jurisdiction and that SolarAPP+ is available 
697.21 	on the permitting authority's website.
697.22 		Subd. 7.Incentive amount. (a) An incentive awarded under this section must be no less 
697.23 	than $5,000 and no greater than $20,000.
697.24 	(b) The commissioner may vary the amount of an incentive awarded under this section 
697.25 	by considering the following factors:
697.26 	(1) the population of the permitting authority;
697.27 	(2) the number of permits for solar projects issued by the permitting authority using 
697.28 	conventional review processes;
697.29 	(3) whether the SolarAPP+ software has been adopted on a stand-alone basis or has been 
697.30 	integrated with other permit management software utilized by the permitting authority; and
698.1 	(4) whether the permitting jurisdiction has participated in other sustainability programs, 
698.2 	including but not limited to GreenStep Cities and the United States Department of Energy's 
698.3 	SolSmart and Charging Smart programs.
698.4 		Subd. 8.Technical assistance. The department must provide technical assistance to 
698.5 	eligible permitting authorities seeking to apply for an incentive under this section.
698.6 		Subd. 9.Program promotion. The department must develop an education and outreach 
698.7 	program to make permitting authorities aware of the incentive offered under this section, 
698.8 	including by convening workshops, producing educational materials, and using other 
698.9 	mechanisms to promote the program, including but not limited to utilizing the efforts of the 
698.10 	League of Minnesota Cities, the Association of Minnesota Counties, the Community Energy 
698.11 	Resource Teams established under section 216C.385, and similar organizations to reach 
698.12 	permitting authorities.
698.13 		Subd. 10.Account established. (a) The SolarAPP+ program account is established in 
698.14 	the special revenue account in the state treasury. The commissioner must credit to the account 
698.15 	appropriations and transfers to the account. Earnings, including interest, dividends, and any 
698.16 	other earnings arising from assets of the account, must be credited to the account. Money 
698.17 	remaining in the account at the end of a fiscal year does not cancel to the general fund but 
698.18 	remains in the account until June 30, 2028. The commissioner must manage the account.
698.19 	(b) Money in the account is appropriated to the commissioner for the purposes of this 
698.20 	section and to reimburse the reasonable costs incurred by the department to administer this 
698.21 	section.

698.22 	Sec. 47. Laws 2023, chapter 60, article 10, section 2, subdivision 2, is amended to read:

698.23	Subd. 2.Energy Resources
 		96,083,000
		27,617,000
	
698.24 	(a) $5,861,000 the first year and $6,038,000 
698.25 	the second year are to the division of energy 
698.26 	resources for operating expenses.
698.27 	(b) $150,000 the first year and $150,000 the 
698.28 	second year are to remediate vermiculite 
698.29 	insulation from households that are eligible 
698.30 	for weatherization assistance under 
698.31 	Minnesota's weatherization assistance program 
698.32 	state plan under Minnesota Statutes, section 
698.33 	216C.264. Remediation must be done in 
699.1 	conjunction with federal weatherization 
699.2 	assistance program services.
699.3 	(c) $1,138,000 in the first year is transferred 
699.4 	from the general fund to the solar for schools 
699.5 	program account under Minnesota Statutes, 
699.6 	section 216C.375, to provide financial 
699.7 	assistance to schools that are state colleges 
699.8 	and universities to purchase and install solar 
699.9 	energy generating systems. This appropriation 
699.10 	must be expended on schools located outside 
699.11 	the electric service territory of the public 
699.12 	utility that is subject to Minnesota Statutes, 
699.13 	section 116C.779. Money under this paragraph 
699.14 	is available until June 30, 2034. Any money 
699.15 	remaining on June 30, 2034, cancels to the 
699.16 	general fund.
699.17 	(d) $189,000 each year is for activities 
699.18 	associated with a utility's implementation of 
699.19 	a natural gas innovation plan under Minnesota 
699.20 	Statutes, section 216B.2427.
699.21 	(e) $15,000,000 in the first year is transferred 
699.22 	from the general fund to the solar for schools 
699.23 	program account in the special revenue fund 
699.24 	for grants under the solar for schools program 
699.25 	established under Minnesota Statutes, section 
699.26 	216C.375. The money under this paragraph 
699.27 	must be expended on schools located outside 
699.28 	the electric service territory of the public 
699.29 	utility that is subject to Minnesota Statutes, 
699.30 	section 116C.779.
699.31 	(f) $500,000 each year is for the strengthen 
699.32 	Minnesota homes program under Minnesota 
699.33 	Statutes, section 65A.299, subdivision 4. 
699.34 	Money under this paragraph is transferred 
699.35 	from the general fund to strengthen Minnesota 
700.1 	homes account in the special revenue fund. 
700.2 	This is a onetime appropriation.
700.3 	(g) $20,000,000 the first year and $18,737,000 
700.4 	the second year are for weatherization and 
700.5 	preweatherization work to serve additional 
700.6 	households and allow for services that would 
700.7 	otherwise be denied due to current federal 
700.8 	limitations related to the federal weatherization 
700.9 	assistance program. Money under this 
700.10 	paragraph is transferred from the general fund 
700.11 	to the preweatherization account in the special 
700.12 	revenue fund under Minnesota Statutes, 
700.13 	section 216C.264, subdivision 1c. The base 
700.14 	in fiscal years 2026 and later is $3,199,000.
700.15 	(h) $15,000,000 the first year is for a grant to 
700.16 	an investor-owned electric utility that has at 
700.17 	least 50,000 retail electric customers, but no 
700.18 	more than 200,000 retail electric customers, 
700.19 	to increase the capacity and improve the 
700.20 	reliability of an existing high-voltage direct 
700.21 	current transmission line that runs between 
700.22 	North Dakota and Minnesota. This is a 
700.23 	onetime appropriation and must be used to 
700.24 	support the cost-share component of a federal 
700.25 	grant application to a program enacted in the 
700.26 	federal Infrastructure Investment and Jobs Act, 
700.27 	Public Law 117-58, and may otherwise be 
700.28 	used to reduce the cost of the high-voltage 
700.29 	direct current transmission project upgrade 
700.30 	and to reimburse the reasonable costs incurred 
700.31 	by the department to administer the grant. This 
700.32 	appropriation is available until June 30, 2034.
700.33 	(i) $300,000 the first year is for technical 
700.34 	assistance and administrative support for the 
700.35 	Tribal Advocacy Council on Energy under 
701.1 	article 12, section 71. As part of the technical 
701.2 	assistance and administrative support for the 
701.3 	program, the commissioner must hire a Tribal 
701.4 	liaison to support the Tribal Advocacy Council 
701.5 	on Energy and advise the department on the 
701.6 	development of a culturally responsive clean 
701.7 	energy grants program based on the priorities 
701.8 	identified by the Tribal Advocacy Council on 
701.9 	Energy.
701.10 	(j) $3,000,000 the first year is for a grant to 
701.11 	Clean Energy Economy Minnesota for the 
701.12 	Minnesota Energy Alley initiative to secure 
701.13 	the state's energy and economic development 
701.14 	future. The appropriation may be used to 
701.15 	establish and support the initiative, provide 
701.16 	seed funding for businesses, develop a training 
701.17 	and development program, support recruitment 
701.18 	of entrepreneurs to Minnesota, and secure 
701.19 	funding from federal programs and corporate 
701.20 	partners to establish a self-sustaining, 
701.21 	long-term revenue model. This appropriation 
701.22 	may be used to reimburse the reasonable costs 
701.23 	incurred by the department to administer the 
701.24 	grant. This is a onetime appropriation and is 
701.25 	available until June 30, 2027.
701.26 	(k) $5,000,000 the first year is transferred to 
701.27 	the electric vehicle rebate program account to 
701.28 	award rebates to purchase or lease eligible 
701.29 	electric vehicles under Minnesota Statutes, 
701.30 	section 216C.401. Rebates must be awarded 
701.31 	under this paragraph only to eligible recipients 
701.32 	located outside the retail electric service area 
701.33 	of the public utility that is subject to 
701.34 	Minnesota Statutes, section 116C.779. This is 
702.1 	a onetime appropriation and is available until 
702.2 	June 30, 2027.
702.3 	(l) $1,000,000 the first year is to award grants 
702.4 	under Minnesota Statutes, section 216C.402, 
702.5 	to automobile dealers seeking certification to 
702.6 	sell electric vehicles and to reimburse the 
702.7 	reasonable costs incurred by the department 
702.8 	to administer the grants. Grants must only be 
702.9 	awarded under this paragraph to eligible 
702.10 	dealers located outside the retail electric 
702.11 	service area of the public utility that is subject 
702.12 	to Minnesota Statutes, section 116C.779. This 
702.13 	is a onetime appropriation and is available 
702.14 	until June 30, 2027.
702.15 	(m) $3,000,000 the first year is transferred to 
702.16 	the residential electric panel upgrade grant 
702.17 	program account established under Minnesota 
702.18 	Statutes, section 216C.45, to award electric 
702.19 	panel upgrade grants and to reimburse the 
702.20 	reasonable costs incurred by the department 
702.21 	to administer the program. Grants must be 
702.22 	awarded under this paragraph only to owners 
702.23 	of single-family homes or multifamily 
702.24 	buildings located outside the electric service 
702.25 	area of the public utility subject to Minnesota 
702.26 	Statutes, section 116C.779. This is a onetime 
702.27 	appropriation and is available until June 30, 
702.28 	2027.
702.29 	(n) $500,000 the first year and $500,000 the 
702.30 	second year are for a grant to the clean energy 
702.31 	resource teams partnerships under Minnesota 
702.32 	Statutes, section 216C.385, subdivision 2, to 
702.33 	provide additional capacity to perform the 
702.34 	duties specified under Minnesota Statutes, 
702.35 	section 216C.385, subdivision 3. This 
703.1 	appropriation may be used to reimburse the 
703.2 	reasonable costs incurred by the department 
703.3 	to administer the grant.
703.4 	(o) $1,807,000 the first year and $301,000 the 
703.5 	second year are to implement energy 
703.6 	benchmarking under Minnesota Statutes, 
703.7 	section 216C.331.
703.8 	Of the amount appropriated under this 
703.9 	paragraph, $750,000 the first year is to award 
703.10 	grants to qualifying utilities that are not 
703.11 	investor-owned utilities to support the 
703.12 	development of technology for implementing 
703.13 	energy benchmarking under Minnesota 
703.14 	Statutes, section 216C.331. This is a onetime 
703.15 	appropriation.
703.16 	Of the amount appropriated in the first year 
703.17 	under this paragraph, $756,000 the first year 
703.18 	is for a grant to Building Owners and 
703.19 	Managers Association Greater Minneapolis 
703.20 	to establish partnerships with three technical 
703.21 	colleges and high school career counselors 
703.22 	with a goal of increasing the number of 
703.23 	building engineers across Minnesota. This is 
703.24 	a onetime appropriation and is available until 
703.25 	June 30, 2028. The grant recipient must 
703.26 	provide a detailed report describing how the 
703.27 	grant funds were used to the chairs and 
703.28 	ranking minority members of the legislative 
703.29 	committees having jurisdiction over higher 
703.30 	education by January 15 of each year until 
703.31 	2028. The report must describe the progress 
703.32 	made toward the goal of increasing the number 
703.33 	of building engineers and strategies used.
703.34 	(p) $500,000 the first year is for a feasibility 
703.35 	study to identify and process Minnesota iron 
704.1 	resources that could be suitable for upgrading 
704.2 	to long-term battery storage specifications. 
704.3 	The results of the feasibility study must be 
704.4 	submitted to the commissioner of commerce 
704.5 	and to the chairs and ranking minority 
704.6 	members of the house of representatives and 
704.7 	senate committees with jurisdiction over 
704.8 	energy policy no later than February
704.9 	November 1, 2025. This appropriation may 
704.10 	be used to reimburse the reasonable costs 
704.11 	incurred to administer the study. This is a 
704.12 	onetime appropriation.
704.13 	(q) $6,000,000 the first year is for electric 
704.14 	school bus grants under Minnesota Statutes, 
704.15 	section 216C.374. Money under this paragraph 
704.16 	is transferred from the general fund to the 
704.17 	electric school bus program account. This is 
704.18 	a onetime appropriation.
704.19 	(r) $5,300,000 the first year is for electric grid 
704.20 	resiliency grants under article 12, section 72. 
704.21 	This appropriation may be used to reimburse 
704.22 	the reasonable costs incurred by the 
704.23 	department to administer the grants. This is a 
704.24 	onetime appropriation and is available until 
704.25 	June 30, 2028.
704.26 	(s) $6,000,000 the first year is transferred to 
704.27 	the heat pump rebate program account 
704.28 	established under Minnesota Statutes, section 
704.29 	216C.46, to implement the heat pump rebate 
704.30 	program and to reimburse the reasonable costs 
704.31 	incurred by the department to administer the 
704.32 	program. Of this amount:
704.33 	(1) up to $1,400,000 the first year is to 
704.34 	contract with an energy coordinator under 
705.1 	Minnesota Statutes, section 216C.46, 
705.2 	subdivision 5; and
705.3 	(2) up to $1,400,000 the first year is to conduct 
705.4 	contractor training and support under 
705.5 	Minnesota Statutes, section 216C.46, 
705.6 	subdivision 6.
705.7 	(t) $1,000,000 the first year is to award air 
705.8 	ventilation pilot program grants under 
705.9 	Minnesota Statutes, section 123B.663, for 
705.10 	assessments, testing, and equipment upgrades 
705.11 	in schools, and for the department's costs to 
705.12 	administer the program. This is a onetime 
705.13 	appropriation.
705.14 	(u) $500,000 the first year is for a grant to the 
705.15 	city of Anoka for feasibility studies as 
705.16 	described in this paragraph and design, 
705.17 	engineering, and environmental analysis 
705.18 	related to the repair and reconstruction of the 
705.19 	Rum River Dam. Findings from the feasibility 
705.20 	studies must be incorporated into the design 
705.21 	and engineering funded by this appropriation. 
705.22 	This appropriation is onetime and is available 
705.23 	until June 30, 2027. This appropriation 
705.24 	includes money for the following studies: (1) 
705.25 	a study to assess the feasibility of adding a 
705.26 	lock or other means for boats to traverse the 
705.27 	dam to navigate between the lower Rum River 
705.28 	and upper Rum River; (2) a study to assess 
705.29 	the feasibility of constructing the dam in a 
705.30 	manner that would facilitate recreational river 
705.31 	surfing at the dam site; and (3) a study to 
705.32 	assess the feasibility of constructing the dam 
705.33 	in a manner to generate hydroelectric power.
705.34 	(v) $3,000,000 the first year is for grants to 
705.35 	install on-site energy storage systems, as 
706.1 	defined in Minnesota Statutes, section 
706.2 	216B.2422, subdivision 1, paragraph (f), with 
706.3 	a capacity of 50 kilowatt hours or less and that 
706.4 	are located outside the electric service area of 
706.5 	the electric utility subject to Minnesota 
706.6 	Statutes, section 116C.779. To receive a grant 
706.7 	under this paragraph, an owner of the energy 
706.8 	storage system must be operating a solar 
706.9 	energy generating system at the same site as 
706.10 	the energy storage system or have filed an 
706.11 	application with a utility to interconnect a solar 
706.12 	energy generating system at the same site as 
706.13 	the energy storage system. This appropriation 
706.14 	may be used to reimburse the reasonable costs 
706.15 	incurred by the department to administer the 
706.16 	grants. This is a onetime appropriation and is 
706.17 	available until June 30, 2027.
706.18 	(w) $164,000 the second year is for activities 
706.19 	associated with a public utility's filing a 
706.20 	transportation electrification plan under 
706.21 	Minnesota Statutes, section 216B.1615. The 
706.22 	base in fiscal year 2026 and later is $164,000.
706.23 	(x) $77,000 each year is for activities 
706.24 	associated with appeals of consumer 
706.25 	complaints to the commission under 
706.26 	Minnesota Statutes, section 216B.172.
706.27 	(y) $961,000 each year is for activities 
706.28 	required under Minnesota Statutes, section 
706.29 	216B.1641 for community solar gardens. This 
706.30 	appropriation must be assessed directly to the 
706.31 	public utility subject to Minnesota Statutes, 
706.32 	section 116C.779.
706.33 	(z) $300,000 the first year is for the 
706.34 	community solar garden program study 
706.35 	required under article 12, section 73.

707.1 	Sec. 48. ULTRAEFFICIENT VEHICLE DEVELOPMENT GRANTS.
 707.2 		Subdivision 1.Program establishment. (a) A grant program is established in the 
707.3 	Department of Commerce to provide financial assistance to developers and producers of 
707.4 	ultraefficient vehicles that use proprietary technology.
707.5 	(b) For purposes of this section, "ultraefficient vehicle" means a fully closed compartment 
707.6 	vehicle that is designed to carry at least one adult passenger and that achieves:
707.7 	(1) at least 75 miles per gallon while operating on gasoline;
707.8 	(2) at least 75 miles per gallon equivalent while operating as a hybrid electric-gasoline; 
707.9 	or
707.10 	(3) at least 75 miles per gallon equivalent while operating as a fully electric vehicle.
707.11 		Subd. 2.Application process. Applicants seeking a grant under this section must submit 
707.12 	an application to the commissioner of commerce on a form developed by the commissioner. 
707.13 	The commissioner is responsible for receiving and reviewing grant applications and awarding 
707.14 	grants under this subdivision. The commissioner must develop administrative procedures 
707.15 	to govern the application, evaluation, and grant-award process.
707.16 		Subd. 3.Grant awards.  The maximum grant award for each eligible applicant awarded 
707.17 	a grant under this section is $250,000. When awarding grants under this section, the 
707.18 	department must:
707.19 	(1) give priority to ultraefficient vehicle projects that are deemed to be near production 
707.20 	ready; and
707.21 	(2) give priority to ultraefficient vehicle projects that maximize the use of electricity to 
707.22 	charge and run the vehicle.
707.23 		Subd. 4.Account established. An ultraefficient vehicle development grant account is 
707.24 	established in the special revenue fund in the state treasury. The commissioner of commerce 
707.25 	must credit to the account appropriations made for ultraefficient vehicle development grants. 
707.26 	Earnings, including interest, arising from assets in the account, must be credited to the 
707.27 	account. Money in the account is available until June 30, 2028. Any amount remaining in 
707.28 	the account after June 30, 2028, cancels to the renewable development account. The 
707.29 	commissioner of commerce must manage the account.
707.30 		Subd. 5.Appropriation; expenditures. Money in the account established in subdivision 
707.31 	4 is appropriated to the commissioner of commerce and must be used only to:
707.32 	(1) make grant awards under this section; and
708.1 	(2) pay the reasonable costs incurred by the department to administer this section.
708.2 		Subd. 6.Report. On January 15, 2026, and on January 15, 2029, the commissioner of 
708.3 	commerce must submit a report to the chairs and ranking minority members of the legislative 
708.4 	committees with jurisdiction over energy policy and finance on the grant awards under this 
708.5 	section.

708.6 	Sec. 49. THERMAL ENERGY NETWORK DEPLOYMENT WORK GROUP.
 708.7 		Subdivision 1.Direction. The Public Utilities Commission must establish and appoint 
708.8 	a thermal energy network deployment work group to examine (1) the potential regulatory 
708.9 	opportunities for regulated natural gas utilities to deploy thermal energy networks, and (2) 
708.10 	potential barriers to development. The work group must examine the public benefits, costs, 
708.11 	and impacts of deployment of thermal energy networks, as well as examine rate design 
708.12 	options.
708.13 		Subd. 2.Membership. (a) The work group consists of at least the following:
708.14 	(1) representatives of the Department of Commerce;
708.15 	(2) representatives of the Department of Health;
708.16 	(3) representatives of the Pollution Control Agency;
708.17 	(4) representatives of the Department of Natural Resources;
708.18 	(5) representatives of the Office of the Attorney General;
708.19 	(6) representatives from utilities;
708.20 	(7) representatives from clean energy advocacy organizations;
708.21 	(8) representatives from labor organizations;
708.22 	(9) geothermal technology providers;
708.23 	(10) representatives from consumer protection organizations;
708.24 	(11) representatives from cities; and
708.25 	(12) representatives from low-income communities.
708.26 	(b) The executive secretary of the Public Utilities Commission may invite others to 
708.27 	participate in one or more meetings of the work group.
708.28 	(c) When appointing members to the work group, the Public Utilities Commission must 
708.29 	endeavor to ensure that all geographic regions of Minnesota are represented.
709.1 		Subd. 3.Duties. The work group must prepare a report containing findings and 
709.2 	recommendations regarding how to deploy thermal energy networks within a regulated 
709.3 	context and in a manner that protects the public interest and considers reliability, affordability, 
709.4 	environmental impacts, and socioeconomic impacts.
709.5 		Subd. 4.Report to legislature. The work group must submit a report detailing the work 
709.6 	group's findings and recommendations to the chairs and ranking minority members of the 
709.7 	legislative committees and divisions with jurisdiction over energy policy and finance by 
709.8 	December 31, 2025. The work group terminates the day after the report under this subdivision 
709.9 	is submitted.
709.10 		Subd. 5.Notice and comment period. The executive secretary of the Public Utilities 
709.11 	Commission must file the completed report in Public Utilities Commission Docket No. 
709.12 	G-999/CI-21-565 and provide notice to all docket participants and other interested persons 
709.13 	that comments on the findings and recommendations may be filed in the docket.
709.14 		Subd. 6.Definition. For the purposes of this section, "thermal energy network" means 
709.15 	a project that provides heating and cooling to multiple buildings connected via underground 
709.16 	piping containing fluids that, in concert with heat pumps, exchange thermal energy from 
709.17 	the earth, underground or surface waters, wastewater, or other heat sources.

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

709.19 	Sec. 50. STUDY; CARBON DIOXIDE PIPELINES.
 709.20 	(a) The commission must contract with an independent third party to conduct a study 
709.21 	that: (1) assesses the human health and environmental impacts that result from constructing, 
709.22 	operating, and maintaining carbon dioxide pipelines; and (2) makes recommendations 
709.23 	regarding regulation of the activities listed in clause (1). The executive secretary of the 
709.24 	commission may consult with the executive director of the environmental quality board 
709.25 	when selecting the contractor to conduct the study.
709.26 	(b) The study must include, at a minimum, the following elements:
709.27 	(1) identification of geographic areas in Minnesota that, due to the geographic area's 
709.28 	geology or the presence of environmentally sensitive resources, are unsuitable sites to 
709.29 	construct and operate carbon dioxide pipelines;
709.30 	(2) the amount of energy and water required to operate the equipment used to capture 
709.31 	the carbon dioxide that is transported in a carbon dioxide pipeline;
710.1 	(3) the potential human and environmental impacts of a carbon dioxide pipeline leak or 
710.2 	rupture, especially to long-term human health, surface water bodies and wetlands, animals 
710.3 	and animal habitat, croplands, and other sensitive resources;
710.4 	(4) measures that can be taken to mitigate the impact of a carbon dioxide pipeline leak 
710.5 	or rupture, including setbacks, protection for wildlife and wildlife habitat, and enhanced 
710.6 	local emergency response strategies and resources;
710.7 	(5) the long-term impacts of pipeline construction on wetlands, soils, crops, and other 
710.8 	vegetation;
710.9 	(6) the lifecycle greenhouse gas emissions resulting from carbon dioxide pipelines, 
710.10 	including the ultimate disposition of the carbon dioxide, whether the carbon dioxide is 
710.11 	sequestered, used to manufacture other products, or used to extract incremental oil or gas 
710.12 	supplies from underground reservoirs. The greenhouse gas emissions resulting from the 
710.13 	process to extract incremental oil or gas supplies from underground reservoirs and the 
710.14 	subsequent combustion of the incremental energy sources must also be estimated. The 
710.15 	analysis should also indicate the degree to which any emission reductions are verifiable; 
710.16 	and
710.17 	(7) recommended provisions for a state regulatory process to site, operate, maintain, and 
710.18 	abandon carbon dioxide pipelines that are transparent, provide opportunity for public 
710.19 	engagement, and provide pipeline operators with clear signals and efficient procedures 
710.20 	regarding permitting issues.
710.21 	(c) No later than November 1, 2026, a written copy of the report must be submitted to 
710.22 	the chairs and ranking minority members of the legislative committees with primary 
710.23 	jurisdiction over energy policy and environmental policy and to the Public Utilities 
710.24 	Commission. The commission must consider the report's findings and recommendations 
710.25 	when issuing siting permits for carbon dioxide pipelines.

710.26 	Sec. 51. THERMAL ENERGY NETWORK SITE SUITABILITY STUDY.
 710.27 	(a) The Department of Commerce must conduct or contract for a study to determine the 
710.28 	suitability of sites to deploy thermal energy networks statewide.
710.29 	(b) The study must:
710.30 	(1) identify areas more and less suitable for deployment of thermal energy networks 
710.31 	statewide; and
711.1 	(2) identify potential barriers to the deployment of thermal energy networks and potential 
711.2 	ways to address the barriers.
711.3 	(c) In determining site suitability, the study must consider:
711.4 	(1) geologic or hydrologic access to thermal storage;
711.5 	(2) the existing built environment, including but not limited to age, density, building 
711.6 	uses, existing heating and cooling systems, and existing electrical services;
711.7 	(3) the condition of existing natural gas infrastructure;
711.8 	(4) road and street conditions, including planned replacement or maintenance;
711.9 	(5) local land use regulations;
711.10 	(6) area permitting requirements; and
711.11 	(7) whether the area is an environmental justice area, as defined in section 116.065, 
711.12 	subdivision 1, paragraph (e).
711.13 	(d) No later than January 15, 2026, the Department of Commerce must submit a written 
711.14 	report documenting the study's findings to the chairs and ranking minority members of the 
711.15 	senate and house of representatives committees with jurisdiction over energy policy and 
711.16 	finance.
711.17 	(e) For the purposes of this section, "thermal energy network" means a project that 
711.18 	provides heating and cooling to multiple buildings connected via underground piping 
711.19 	containing fluids that, in concert with heat pumps, exchange thermal energy from the earth, 
711.20 	underground or surface waters, wastewater, or other heat sources.

711.21 	Sec. 52. GRID ENHANCING TECHNOLOGIES REPORT; PUBLIC UTILITIES 
711.22 	COMMISSION ORDER.
 711.23 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
711.24 	the meanings given.
711.25 	(b) "Capacity" means the maximum amount of electricity that can flow through a 
711.26 	transmission line while observing industry safety standards.
711.27 	(c) "Congestion" means a condition in which a lack of transmission line capacity prevents 
711.28 	the delivery of the lowest-cost electricity dispatched to meet load at a specific location.
711.29 	(d) "Dynamic line rating" means hardware or software used to calculate the thermal 
711.30 	limit of existing transmission lines at a specific point in time by incorporating information 
711.31 	on real-time and forecasted weather conditions.
712.1 	(e) "Grid enhancing technology" means hardware or software that reduces congestion 
712.2 	or enhances the flexibility of the transmission system by increasing the capacity of a 
712.3 	high-voltage transmission line or rerouting electricity from overloaded to uncongested lines, 
712.4 	while maintaining industry safety standards. Grid enhancing technologies include but are 
712.5 	not limited to dynamic line rating, advanced power flow controllers, and topology 
712.6 	optimization.
712.7 	(f) "Line rating methodology" means a methodology used to calculate the maximum 
712.8 	amount of electricity that can be carried by a transmission line without exceeding thermal 
712.9 	limits designed to ensure safety.
712.10 	(g) "Power flow controller" means hardware and software used to reroute electricity 
712.11 	from overloaded transmission lines to underutilized transmission lines.
712.12 	(h) "Thermal limit" means the temperature a transmission line reaches when heat from 
712.13 	the electric current flow within the transmission line causes excessive sagging of the 
712.14 	transmission line.
712.15 	(i) "Topology optimization" means a software technology that uses mathematical models 
712.16 	to identify reconfigurations in the transmission grid in order to reroute electricity from 
712.17 	overloaded transmission lines to underutilized transmission lines.
712.18 	(j) "Transmission line" has the meaning given to "high-voltage transmission line" in 
712.19 	section 216E.01. subdivision 4.
712.20 	(k) "Transmission system" means a network of high-voltage transmission lines owned 
712.21 	or operated by an entity subject to this section that transports electricity to Minnesota 
712.22 	customers.
712.23 		Subd. 2.Report; content. An entity that owns more than 750 miles of transmission 
712.24 	lines in Minnesota, as reported in the state transmission report submitted to the Public 
712.25 	Utilities Commission under Minnesota Statutes, section 216B.2425, by November 1, 2025, 
712.26 	must include in that report information that:
712.27 	(1) identifies, during each of the last three years, locations that experienced 168 hours 
712.28 	or more of congestion, or the ten locations at which the most costly congestion occurred, 
712.29 	whichever measure produces the greater number of locations;
712.30 	(2) estimates the frequency of congestion at each location and the increased cost to 
712.31 	ratepayers resulting from the substitution of higher-priced electricity;
712.32 	(3) identifies locations on each transmission system that are likely to experience high 
712.33 	levels of congestion during the next five years;
713.1 	(4) evaluates the technical feasibility and estimates the cost of installing one or more 
713.2 	grid enhancing technologies to address each instance of grid congestion identified in clause 
713.3 	(1), and projects the grid enhancing technology's efficacy in reducing congestion;
713.4 	(5) analyzes the cost-effectiveness of installing grid enhancing technologies to address 
713.5 	each instance of congestion identified in clause (1) by using the information developed in 
713.6 	clause (2) to calculate the payback period of each installation, using a methodology developed 
713.7 	by the commission;
713.8 	(6) proposes an implementation plan, including a schedule and cost estimate, to install 
713.9 	grid enhancing technologies at each congestion point identified in clause (1) at which the 
713.10 	payback period is less than or equal to a value determined by the commission, in order to 
713.11 	maximize transmission system capacity; and
713.12 	(7) explains the transmission owner's current line rating methodology.
713.13 		Subd. 3.Commission review; order. (a) The commission must review the 
713.14 	implementation plans proposed by each reporting entity as required in subdivision 2, clause 
713.15 	(6), and must:
713.16 	(1) review, and may approve, reject, or modify, the plan; and
713.17 	(2) issue an order requiring implementation of an approved plan.
713.18 	(b) Within 90 days of the date the commission issues an order under this subdivision 
713.19 	each public utility must file with the commission a plan containing a workplan, cost estimate, 
713.20 	and schedule to implement the elements of the plan approved by the commission that are 
713.21 	located within the public utility's electric service area. For each entity required to report 
713.22 	under this section that is not a public utility, the commission's order is advisory.
713.23 		Subd. 4.Cost recovery. Notwithstanding any other provision of this chapter, the 
713.24 	commission may approve cost recovery under Minnesota Statutes, section 216B.16, including 
713.25 	an appropriate rate of return, of any prudent and reasonable investments made or expenses 
713.26 	incurred by a public utility to administer and implement a grid enhancing technologies plan 
713.27 	approved by the commission under this section.

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

713.29 	Sec. 53. INTERCONNECTION DOCKET; PUBLIC UTILITIES COMMISSION.
 713.30 	(a) No later than September 1, 2024, the commission must initiate a proceeding to 
713.31 	establish by order generic standards for the sharing of utility costs necessary to upgrade a 
713.32 	utility's distribution system by increasing hosting capacity or applying other necessary 
714.1 	distribution system upgrades at a congested or constrained location in order to allow for the 
714.2 	interconnection of distributed generation facilities at the congested or constrained location 
714.3 	and to advance the achievement of the state's renewable and carbon-free energy goals in 
714.4 	Minnesota Statutes, section 216B.1691 and greenhouse gas emissions reduction goals in 
714.5 	Minnesota Statutes, section 216H.02. The tariff standards must reflect an interconnection 
714.6 	process designed to, at a minimum:
714.7 	(1) accelerate the expansion of hosting capacity at multiple points on a utility's distribution 
714.8 	system by ensuring that the cost of upgrades is shared fairly among owners of distributed 
714.9 	generation projects seeking interconnection on a pro rata basis according to the amount of 
714.10 	the expanded capacity utilized by each interconnected distributed generation facility;
714.11 	(2) reduce the capital burden on owners of trigger projects seeking interconnection;
714.12 	(3) establish a minimum level of upgrade costs an expansion of hosting capacity must 
714.13 	reach in order to be eligible to participate in the cost-share process and below which a trigger 
714.14 	project must bear the full cost of the upgrade;
714.15 	(4) establish a distributed generation facility's pro rata cost-share amount as the utility's 
714.16 	total cost of the upgrade divided by the incremental capacity resulting from the upgrade, 
714.17 	and multiplying the result by the capacity of the distributed generation facility seeking 
714.18 	interconnection;
714.19 	(5) establish a minimum proportion of the total upgrade cost that a utility must receive 
714.20 	from one or more distributed generation facilities before initiating constructing an upgrade;
714.21 	(6) allow trigger projects and any other distributed generation facilities to pay a utility 
714.22 	more than the trigger project's or distributed generation facility's pro rata cost-share amount 
714.23 	only if needed to meet the minimum threshold established in clause (5) and to receive refunds 
714.24 	for amounts paid beyond the trigger project's or distributed generation facility's pro rata 
714.25 	share of expansion costs from distributed generation projects that subsequently interconnect 
714.26 	at the applicable location, after which pro rata payments are paid to the utility for distribution 
714.27 	to ratepayers;
714.28 	(7) prohibit owners of distributed generation facilities from using any unsubscribed 
714.29 	capacity at an interconnection that has undergone an upgrade without the distributed 
714.30 	generation owners paying the distributed generation owner's pro rata cost of the upgrade; 
714.31 	and
715.1 	(8) establish an annual limit or a formula for determining an annual limit for the total 
715.2 	cost of upgrades that are not allocated to owners of participating generation facilities and 
715.3 	may be recovered from ratepayers under section 216B.16, subdivision 7b, clause (6).
715.4 	(b) For the purposes of this section, the following terms have the meanings given:
715.5 	(1) "distributed generation project" means an energy generating system with a capacity 
715.6 	no greater than ten megawatts;
715.7 	(2) "hosting capacity" means the maximum capacity of a utility distribution system to 
715.8 	transport electricity at a specific location without compromising the safety or reliability of 
715.9 	the distribution system;
715.10 	(3) "trigger project" means the initial distributed generation project whose application 
715.11 	for interconnection of a distributed generation project alerts a utility that an upgrade is 
715.12 	needed in order to accommodate the trigger project and any future interconnections at the 
715.13 	applicable location;
715.14 	(4) "upgrade" means a modification of a utility's distribution system at a specific location 
715.15 	that is necessary to allow the interconnection of distributed generation projects by increasing 
715.16 	hosting capacity at the applicable location, including but not limited to installing or modifying 
715.17 	equipment at a substation or along a distribution line. Upgrade does not mean an expansion 
715.18 	of hosting capacity dedicated solely to the interconnection of a single distributed generation 
715.19 	project; and
715.20 	(5) "utility" means a public utility, as defined in Minnesota Statutes, section 216B.02, 
715.21 	subdivision 4, that provides electric service.

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

715.23 	Sec. 54. POSITION ESTABLISHED; PUBLIC UTILITIES COMMISSION.
 715.24 		Subdivision 1.Position; duties. (a) The Public Utilities Commission's Consumer Affairs 
715.25 	Office must establish a new full-time equivalent interconnection ombudsperson position to 
715.26 	assist applicants seeking to interconnect distributed generation projects to utility distribution 
715.27 	systems under the generic statewide standards developed by the commission under section 
715.28 	53. The Public Utilities Commission must (1) appoint a person to the position who possesses 
715.29 	mediation skills and technical expertise related to interconnection and interconnection 
715.30 	procedures, and (2) authorize the person to request and review all interconnection data from 
715.31 	utilities and applicants that are necessary to fulfill the duties of the position described in 
715.32 	this subdivision.
716.1 	(b) The duties of the interconnection ombudsperson include but are not limited to:
716.2 	(1) tracking interconnection disputes between applicants and utilities;
716.3 	(2) facilitating the efficient and fair resolution of disputes between customers seeking 
716.4 	to interconnect and utilities;
716.5 	(3) reviewing utility interconnection policies to assess opportunities to reduce 
716.6 	interconnection disputes, while considering the equitable distribution of distributed generation 
716.7 	facilities;
716.8 	(4) convening stakeholder groups as necessary to facilitate effective communication 
716.9 	among interconnection stakeholders; and
716.10 	(5) preparing reports that detail the number, type, resolution timelines, and outcome of 
716.11 	interconnection disputes.
716.12 	(c) A utility must provide information requested under this section that the interconnection 
716.13 	ombudsperson determines is necessary to effectively carry out the duties of the position.
716.14 		Subd. 2.Definition. For the purposes of this section, "utility" means a public utility, as 
716.15 	defined in Minnesota Statutes, section 216B.02, subdivision 4, that provides electric service.
716.16 		Subd. 3.Position; funding. (a) A utility must assess and collect a surcharge of $50 on 
716.17 	each application interconnection filed by an owner of a distributed generation facility located 
716.18 	in Minnesota. A utility must remit the full surcharge to the Public Utilities Commission 
716.19 	monthly, in a manner determined by the Public Utilities Commission, for each interconnection 
716.20 	application filed with the utility during the previous month.
716.21 	(b) The interconnection ombudsperson account is established in the special revenue 
716.22 	account in the state treasury. The Public Utilities Commission must manage the account. 
716.23 	The Public Utilities Commission must deposit in the account all revenues received from 
716.24 	utilities from the surcharge on interconnection applications established under this section. 
716.25 	Money is appropriated from the account to the Public Utilities Commission for the sole 
716.26 	purpose of funding the ombudsperson position established in subdivision 1.
716.27 	(c) The Public Utilities Commission must review the amount of revenues collected from 
716.28 	the surcharge each year and may adjust the level of the surcharge as necessary to ensure (1) 
716.29 	sufficient money is available to support the position, and (2) the reserve in the account does 
716.30 	not reach more than ten percent of the amount necessary to fully fund the position.

716.31 	EFFECTIVE DATE. This section is effective the day following final enactment and 
716.32 	applies to applications for interconnections filed with a utility on or after that date.

717.1 	ARTICLE 43
717.2 	MINNESOTA ENERGY INFRASTRUCTURE PERMITTING ACT

717.3 	Section 1. [216I.01] CITATION.
717.4 	This chapter may be cited as the "Minnesota Energy Infrastructure Permitting Act."

717.5 	Sec. 2. [216I.02] DEFINITIONS.
717.6 		Subdivision 1.Applicability. For purposes of this chapter, the terms defined in this 
717.7 	section have the meanings given, unless context clearly indicates or provides otherwise.
717.8 		Subd. 2.Associated facility. "Associated facility" means a building, equipment, 
717.9 	communication instrumentation, or other physical structure that is necessary to operate a 
717.10 	large energy infrastructure facility. Associated facility includes transmission lines designed 
717.11 	for and capable of operating at 100 kilovolts or less that interconnect the large energy 
717.12 	infrastructure facility with the existing high-voltage transmission system.
717.13 		Subd. 3.Commission. "Commission" means the Public Utilities Commission. 
717.14 	Commission also means the executive secretary of the Public Utilities Commission for 
717.15 	purposes of the following:
717.16 	(1) applicability determinations under section 216I.04;
717.17 	(2) completeness determinations under section 216I.05;
717.18 	(3) public meetings under section 216I.05, subdivision 9;
717.19 	(4) draft environmental impact statements under section 216I.06, subdivision 1, paragraph 
717.20 	(c); and
717.21 	(5) public hearings under section 216I.06, subdivision 2, or 216I.07, subdivision 4.
717.22 		Subd. 4.Construction. "Construction" means any clearing of land, excavation, or other 
717.23 	action that adversely affects the site's or route's natural environment. Construction does not 
717.24 	include changes needed to temporarily use sites or routes for nonutility purposes, or uses 
717.25 	in securing survey or geological data, including necessary borings to ascertain foundation 
717.26 	conditions.
717.27 		Subd. 5.Cultivated agricultural land. "Cultivated agricultural land" has the meaning 
717.28 	given in section 216G.01, subdivision 4.
717.29 		Subd. 6.Energy storage system. "Energy storage system" means equipment and 
717.30 	associated facilities designed with a nameplate capacity of 10,000 kilowatts or more that is 
718.1 	capable of storing generated electricity for a period of time and delivering the electricity 
718.2 	for use after storage.
718.3 		Subd. 7.Executive secretary. "Executive secretary" means the executive secretary of 
718.4 	the Public Utilities Commission under section 216A.04 or Public Utilities Commission staff 
718.5 	designated by the executive secretary.
718.6 		Subd. 8.High-voltage transmission line. "High-voltage transmission line" means a 
718.7 	conductor of electric energy and associated facilities that is (1) designed for and capable of 
718.8 	operation at a nominal voltage of 100 kilovolts or more, and (2) is greater than 1,500 feet 
718.9 	in length.
718.10 		Subd. 9.Large electric power generating plant. "Large electric power generating 
718.11 	plant" means electric power generating equipment and associated facilities designed for or 
718.12 	capable of operation at a capacity of 50,000 kilowatts or more.
718.13 		Subd. 10.Large energy infrastructure facility. "Large energy infrastructure facility" 
718.14 	means a high-voltage transmission line, a large electric power generating plant, an energy 
718.15 	storage system, a large wind energy conversion system, and any associated facility.
718.16 		Subd. 11.Large wind energy conversion system. "Large wind energy conversion 
718.17 	system" means any combination of wind energy conversion systems with a combined 
718.18 	nameplate capacity of 5,000 kilowatts or more, and may include transmission lines designed 
718.19 	for and capable of operating at 100 kilovolts or less that interconnect a large wind energy 
718.20 	conversion system with a high-voltage transmission line.
718.21 		Subd. 12.Permittee. "Permittee" means a person to whom a site or route permit is 
718.22 	issued.
718.23 		Subd. 13.Person. "Person" means an individual, partnership, joint venture, private or 
718.24 	public corporation, association, firm, public service company, cooperative, political 
718.25 	subdivision, municipal corporation, government agency, public utility district, or any other 
718.26 	entity, public or private, however organized.
718.27 		Subd. 14.Power purchase agreement. "Power purchase agreement" means a legally 
718.28 	enforceable agreement between two or more persons where one or more of the signatories 
718.29 	agrees to provide electrical power and one or more of the signatories agrees to purchase the 
718.30 	power.
718.31 		Subd. 15.Route. "Route" means the location of a high-voltage transmission line between 
718.32 	two end points. The route may have a variable width of up to 1.25 miles.
719.1 		Subd. 16.Site. "Site" means the location of a large electric power generating plant, solar 
719.2 	energy generating system, energy storage system, or large wind energy conversion system.
719.3 		Subd. 17.Small wind energy conversion system. "Small wind energy conversion 
719.4 	system" means any combination of wind energy conversion systems with a combined 
719.5 	nameplate capacity of less than 5,000 kilowatts.
719.6 		Subd. 18.Solar energy generating system. "Solar energy generating system" means a 
719.7 	set of devices whose primary purpose is to produce electricity by means of any combination 
719.8 	of collecting, transferring, or converting solar-generated energy with a combined nameplate 
719.9 	capacity of 50,000 kilowatts alternating current or more.
719.10 		Subd. 19.Utility. "Utility" means any entity engaged or intending to engage in generating, 
719.11 	transmitting, or distributing electric energy in Minnesota. Utility includes but is not limited 
719.12 	to a private investor-owned utility, cooperatively owned utility, and public or municipally 
719.13 	owned utility.
719.14 		Subd. 20.Wind energy conversion system. "Wind energy conversion system" means 
719.15 	a device, including but not limited to a wind charger, windmill, or wind turbine and associated 
719.16 	facilities, that converts wind energy to electrical energy.

719.17 	Sec. 3. [216I.03] SITING AUTHORITY.
719.18 		Subdivision 1.Policy. The legislature hereby declares it is the policy of the state to 
719.19 	locate large electric power facilities in an orderly manner that is compatible with 
719.20 	environmental preservation and the efficient use of resources. In accordance with the policy, 
719.21 	the commission must choose locations that minimize adverse human and environmental 
719.22 	impact while ensuring (1) continuing electric power system reliability and integrity, and 
719.23 	(2) that electric energy needs are met and fulfilled in an orderly and timely fashion.
719.24 		Subd. 2.Jurisdiction. (a) The commission has the authority to provide for site and route 
719.25 	selection for large energy infrastructure facilities. The commission must issue permits for 
719.26 	large energy infrastructure facilities in a timely fashion and in a manner consistent with the 
719.27 	overall determination of need for the project under section 216B.2425 or 216B.243, if 
719.28 	applicable.
719.29 	(b) The scope of an environmental review conducted under this chapter must not include: 
719.30 	(1) questions of need, including size, type, and timing; (2) alternative system configurations; 
719.31 	or (3) voltage.
719.32 		Subd. 3.Interstate routes. If a route is proposed in two or more states, the commission 
719.33 	must attempt to reach an agreement with affected states on the entry and exit points before 
720.1 	designating a route. The commission, in discharge of the commission's duties under this 
720.2 	chapter, may make joint investigations, hold joint hearings within or outside of the state, 
720.3 	and issue joint or concurrent orders in conjunction or concurrence with any official or agency 
720.4 	of any state or of the United States. The commission may, pursuant to any consent of 
720.5 	Congress, negotiate and enter into any agreements or compacts with agencies of other states 
720.6 	for cooperative efforts to certify the construction, operation, and maintenance of large 
720.7 	electric power facilities in a manner consistent with this chapter's requirements and to enforce 
720.8 	the respective state laws regarding large electric power facilities.
720.9 		Subd. 4.Biennial report. By December 15, 2025, and every odd-numbered year 
720.10 	thereafter, the commission must submit a written report to the chairs and ranking minority 
720.11 	members of the senate and house of representatives committees with jurisdiction over energy 
720.12 	and utilities. The report must:
720.13 	(1) provide an update on the progress made to permit, approve, and construct the electric 
720.14 	utility infrastructure necessary to meet the requirements of section 216B.1691 within the 
720.15 	milestones provided under section 216B.1691;
720.16 	(2) describe efforts made by the commission to engage stakeholders in environmental 
720.17 	justice areas, as defined in section 216B.1691, subdivision 1, paragraph (c), in permitting, 
720.18 	approving, and constructing electric utility infrastructure under this section, section 
720.19 	216B.1691, or section 216B.243; and
720.20 	(3) provide information regarding any cumulative impact analysis ordered by the 
720.21 	commissioner of the Pollution Control Agency under section 116.065 pertaining to any 
720.22 	electric utility infrastructure permitted, approved, or constructed under this section, section 
720.23 	216B.1691, or section 216B.243.

720.24 	Sec. 4. [216I.04] APPLICABILITY DETERMINATION.
720.25 		Subdivision 1.Generally. This section may be used to determine: (1) whether a proposal 
720.26 	meets the definition of large energy infrastructure facility and is subject to the commission's 
720.27 	siting or routing jurisdiction under this chapter; or (2) which review process is applicable 
720.28 	at the time of the initial application.
720.29 		Subd. 2.Solar, wind, or energy storage facilities. For solar energy generating systems, 
720.30 	large wind energy conversion systems, or energy storage systems, the alternating current 
720.31 	nameplate capacity of one solar energy generating system, wind energy conversion system, 
720.32 	or energy storage system must be combined with the alternating current nameplate capacity 
721.1 	of any other solar energy generating system, wind energy conversion system, or energy 
721.2 	storage system that:
721.3 	(1) is constructed within the same 12-month period; and
721.4 	(2) exhibits characteristics of being a single development, including but not limited to 
721.5 	ownership structure, an umbrella sales arrangement, shared interconnection, revenue-sharing 
721.6 	arrangements, and common debt or equity financing.
721.7 		Subd. 3.Transmission lines. For transmission lines, the petitioner must describe the 
721.8 	applicability question and provide sufficient facts to support the determination.
721.9 		Subd. 4.Forms; assistance; written determination. (a) The commission must provide 
721.10 	forms and assistance to help applicants make a request for an applicability determination.
721.11 	(b) Upon written request from an applicant, the commission or the commission's designee 
721.12 	must provide a written determination regarding applicability under this section. The 
721.13 	commission or the commission's designee must provide the written determination within 
721.14 	30 days of the date the request was received or 30 days of the date information that the 
721.15 	commission requested from the applicant is received, whichever is later. This written 
721.16 	determination constitutes a final decision of the commission.

721.17 	Sec. 5. [216I.05] DESIGNATING SITES AND ROUTES.
721.18 		Subdivision 1.Site permit. (a) A person is prohibited from constructing a large electric 
721.19 	generating plant, a solar energy generating system, an energy storage system, or a large 
721.20 	wind energy conversion system without a site permit issued by the commission. A person 
721.21 	may construct a large electric generating plant, an energy storage system, a solar energy 
721.22 	generating system, or a large wind energy conversion system only on a site approved by 
721.23 	the commission. A person is prohibited from increasing the generating capacity or output 
721.24 	of an electric power plant from under 50 megawatts to more than 50 megawatts without a 
721.25 	site permit issued by the commission.
721.26 	(b) The commission must incorporate into one proceeding the route selection for a 
721.27 	high-voltage transmission line that is directly associated with and necessary to interconnect 
721.28 	the large electric generating plant, energy storage system, solar energy generating system, 
721.29 	or large wind energy conversion system to the transmission system if the applications are 
721.30 	submitted jointly under this chapter.
721.31 	(c) A site permit does not authorize construction of a large electric power generating 
721.32 	plant until the permittee has obtained a power purchase agreement or some other enforceable 
721.33 	mechanism to sell the power generated by the project. If the permittee does not have a power 
722.1 	purchase agreement or other enforceable mechanism at the time the permit is issued, the 
722.2 	commission must provide in the permit that the permittee must advise the commission when 
722.3 	the permittee obtains a commitment to purchase the power. The commission may establish 
722.4 	as a condition in the permit a date by which the permittee must obtain a power purchase 
722.5 	agreement or other enforceable mechanism. If the permittee does not obtain a power purchase 
722.6 	agreement or other enforceable mechanism by the date required by the permit condition, 
722.7 	the site permit is null and void.
722.8 		Subd. 2.Route permit. A person is prohibited from constructing a high-voltage 
722.9 	transmission line without a route permit issued by the commission. A person may construct 
722.10 	a high-voltage transmission line only along a route approved by the commission.
722.11 		Subd. 3.Application. (a) A person that seeks to construct a large energy infrastructure 
722.12 	facility must apply to the commission for a site or route permit, as applicable. The applicant 
722.13 	must propose a single route for a high-voltage transmission line.
722.14 	(b) The application must contain:
722.15 	(1) a statement of proposed ownership of the facility at the time of filing the application 
722.16 	and after commercial operation;
722.17 	(2) the name of any person or organization initially named as permittee or permittees 
722.18 	and the name of any other person to whom the permit may be transferred if transfer of the 
722.19 	permit is contemplated;
722.20 	(3) a description of the proposed large energy infrastructure facility and all associated 
722.21 	facilities, including size, type, and timing of the facility;
722.22 	(4) the environmental information required under subdivision 4;
722.23 	(5) the names of each owner described under subdivision 8;
722.24 	(6) United States Geological Survey topographical maps, or other maps acceptable to 
722.25 	the commission, that show the entire proposed large energy infrastructure facility;
722.26 	(7) a document that identifies existing utility and public rights-of-way along or near the 
722.27 	large energy infrastructure facility;
722.28 	(8) the engineering and operational design at each of the proposed sites for the proposed 
722.29 	large energy infrastructure facility, and identify transportation, pipeline, and electrical 
722.30 	transmission systems that are required to construct, maintain, and operate the facility;
722.31 	(9) a cost analysis of the proposed large energy infrastructure facility, including the costs 
722.32 	to construct, operate, and maintain the facility;
723.1 	(10) a description of possible design options to accommodate the large energy 
723.2 	infrastructure facility's future expansion;
723.3 	(11) the procedures and practices proposed to acquire, construct, maintain, and restore 
723.4 	the large energy infrastructure facility's right-of-way or site;
723.5 	(12) a list and brief description of federal, state, and local permits that may be required 
723.6 	for the proposed large energy infrastructure facility;
723.7 	(13) a discussion regarding whether a certificate of need application is required and, if 
723.8 	a certificate of need application is required, whether the certificate of need application has 
723.9 	been submitted;
723.10 	(14) a discussion regarding any other sites or routes that were considered and rejected 
723.11 	by the applicant;
723.12 	(15) any information the commission requires pursuant to an administrative rule; and
723.13 	(16) a discussion regarding coordination with Minnesota Tribal governments, as defined 
723.14 	under section 10.65, subdivision 2, by the applicant, including but not limited to the notice 
723.15 	required under subdivision 5 of this section.
723.16 		Subd. 4.Environmental information. (a) An applicant for a site or route permit must 
723.17 	include in the application environmental information for each proposed site or route. The 
723.18 	environmental information submitted must include:
723.19 	(1) a description of each site or route's environmental setting;
723.20 	(2) a description of the effects the facility's construction and operation has on human 
723.21 	settlement, including but not limited to public health and safety, displacement, noise, 
723.22 	aesthetics, socioeconomic impacts, environmental justice impacts, cultural values, recreation, 
723.23 	and public services;
723.24 	(3) a description of the facility's effects on land-based economies, including but not 
723.25 	limited to agriculture, forestry, tourism, and mining;
723.26 	(4) a description of the facility's effects on archaeological and historic resources;
723.27 	(5) a description of the facility's effects on the natural environment, including effects 
723.28 	on air and water quality resources, flora, and fauna;
723.29 	(6) a description of the greenhouse gas emissions associated with constructing and 
723.30 	operating the facility;
723.31 	(7) a description of the facility's climate change resilience;
724.1 	(8) a description of the facility's effects on rare and unique natural resources;
724.2 	(9) a list that identifies human and natural environmental effects that are unavoidable if 
724.3 	the facility is approved at a specific site or route; and
724.4 	(10) a description of (i) measures that might be implemented to mitigate the potential 
724.5 	human and environmental impacts identified in clauses (1) to (7), and (ii) the estimated 
724.6 	costs of the potential mitigative measures.
724.7 	(b) An applicant that applies using the standard process under section 216I.06 may 
724.8 	include the environmental information required under paragraph (a) in the applicant's 
724.9 	environmental assessment.
724.10 		Subd. 5.Preapplication coordination. At least 30 days before filing an application 
724.11 	with the commission, an applicant must provide notice to: (1) each local unit of government 
724.12 	within which a site or route may be proposed; (2) Minnesota Tribal governments, as defined 
724.13 	under section 10.65, subdivision 2; and (3) the state technical resource agencies. The notice 
724.14 	must describe the proposed project and provide the entities receiving the notice an opportunity 
724.15 	for preapplication coordination or feedback.
724.16 		Subd. 6.Preapplication review. (a) Before submitting an application under this chapter, 
724.17 	an applicant must provide a draft application to commission staff for review. A draft 
724.18 	application must not be filed electronically.
724.19 	(b) Commission staff's draft application review must focus on the application's 
724.20 	completeness and clarifications that may assist the commission's review of the application. 
724.21 	Upon completion of the preapplication review under this subdivision, commission staff 
724.22 	must provide the applicant a summary of the completeness review. The applicant may 
724.23 	include the completeness review summary with the applicant's application under subdivision 
724.24 	3.
724.25 		Subd. 7.Complete applications. (a) The commission or the commission's designee 
724.26 	must determine whether an application is complete and advise the applicant of any 
724.27 	deficiencies within ten working days of the date an application is received.
724.28 	(b) An application is not incomplete if: (1) information that is not included in the 
724.29 	application may be obtained from the applicant prior to the initial public meeting; and (2) 
724.30 	the information that is not included in the application is not essential to provide adequate 
724.31 	notice.
724.32 		Subd. 8.Application notice. (a) Upon finding an application is complete, the commission 
724.33 	must:
725.1 	(1) publish notice of the application in a legal newspaper of general circulation in each 
725.2 	county in which the site or route is proposed;
725.3 	(2) provide notice of the application to any regional development commission, Minnesota 
725.4 	Tribal government as defined under section 10.65, subdivision 2, county, incorporated 
725.5 	municipality, and town in which any part of the site or route is proposed;
725.6 	(3) provide notice of the application and description of the proposed project to each 
725.7 	owner whose property is within or adjacent to the proposed site or route for the large energy 
725.8 	infrastructure facility; and
725.9 	(4) provide notice to persons who have requested to be placed on a list maintained by 
725.10 	the commission to receive notice of proposed large energy infrastructure facilities.
725.11 	(b) The commission must identify a standard format and content for application notice. 
725.12 	At a minimum, the notice must include: (1) a description of the proposed project, including 
725.13 	a map displaying the general area of the proposed site or route; (2) a description detailing 
725.14 	how a person may receive more information and future notices regarding the application; 
725.15 	and (3) a location where a copy of the application may be reviewed.
725.16 	(c) The notice must also provide information regarding the date and location of the public 
725.17 	meeting where the public may learn more about the proposed project and the commission's 
725.18 	review process.
725.19 	(d) For the purposes of providing mailed notice under this subdivision, an owner is the 
725.20 	person indicated in the records of the county auditor or, in a county where tax statements 
725.21 	are mailed by the county treasurer, in the records of the county treasurer. If necessary, other 
725.22 	appropriate records may be used for purposes of providing mailed notice. The failure to 
725.23 	provide mailed notice to a property owner or defects in the notice do not invalidate the 
725.24 	proceedings, provided a bona fide attempt to comply with this subdivision has been made.
725.25 		Subd. 9.Public meeting. (a) The commission must hold at least one public meeting in 
725.26 	a location near the proposed large energy infrastructure facility project's location to explain 
725.27 	the permitting process, present major issues, accept public comments on the scope of the 
725.28 	environmental impact statement prepared under section 216I.06 or the addendum prepared 
725.29 	under section 216I.07, and respond to questions raised by the public.
725.30 	(b) At the public meeting and in written comments accepted for at least ten days following 
725.31 	the date of the public meeting, the commission must accept comments on (1) potential 
725.32 	impacts and alternative sites or routes to be considered in the environmental impact statement 
726.1 	prepared under section 216I.06 or the addendum prepared under section 216I.07, and (2) 
726.2 	permit conditions.
726.3 		Subd. 10.Draft permit; additional considerations. Upon close of the public comment 
726.4 	period following the public meeting in subdivision 9, the commission must:
726.5 	(1) prepare a draft site or route permit for the large energy infrastructure facility. The 
726.6 	draft permit must identify the person or persons who are the permittee, describe the proposed 
726.7 	project, and include proposed permit conditions. A draft site permit does not authorize a 
726.8 	person to construct a large energy infrastructure facility. The commission may change the 
726.9 	draft site permit in any respect before final issuance or may deny the permit; and
726.10 	(2) identify the scope of the environmental impact statement prepared under section 
726.11 	216I.06 or the addendum prepared under section 216I.07. A member of the commission is 
726.12 	prohibited from giving direction to commission environmental review staff on the scope of 
726.13 	an environmental assessment, environmental addendum, or environmental impact statement, 
726.14 	except in a publicly noticed meeting or through a publicly available commission notice or 
726.15 	order.
726.16 		Subd. 11.Designating sites and routes; considerations. (a) The commission's site and 
726.17 	route permit determinations must (1) be guided by the state's goals to conserve resources; 
726.18 	(2) minimize environmental impacts, and minimize human settlement and other land use 
726.19 	conflicts; (3) consider impacts to environmental justice areas, as defined in section 
726.20 	216B.1691, subdivision 1, paragraph (e), including cumulative impacts, as defined in section 
726.21 	116.065, to environmental justice areas; and (4) ensure the state's energy security through 
726.22 	efficient, cost-effective energy supply and infrastructure.
726.23 	(b) When determining whether to issue a site permit for a large energy infrastructure 
726.24 	facility, the commission must include but is not limited to:
726.25 	(1) evaluating research and investigations relating to: (i) large energy infrastructure 
726.26 	facilities' effects on land, water, and air resources; and (ii) the effects water and air discharges 
726.27 	and electric and magnetic fields resulting from large energy infrastructure facilities have 
726.28 	on public health and welfare, vegetation, animals, materials, and aesthetic values, including 
726.29 	baseline studies, predictive modeling, and evaluating new or improved methods to minimize 
726.30 	adverse impacts of water and air discharges and other matters pertaining to large energy 
726.31 	infrastructure facilities' effects on the water and air environment;
726.32 	(2) conducting environmental evaluation of sites and routes that are proposed for future 
726.33 	development and expansion, and the relationship of proposed sites and routes for future 
726.34 	development and expansion to Minnesota's land, water, air, and human resources;
727.1 	(3) evaluating the effects of measures designed to minimize adverse environmental 
727.2 	effects;
727.3 	(4) evaluating the potential for beneficial uses of waste energy from proposed large 
727.4 	electric power generating plants;
727.5 	(5) analyzing the direct and indirect economic impact of proposed sites and routes, 
727.6 	including but not limited to productive agricultural land lost or impaired;
727.7 	(6) evaluating adverse direct and indirect environmental effects that are unavoidable 
727.8 	should the proposed site and route be accepted;
727.9 	(7) evaluating alternatives to the applicant's proposed site or route, if applicable;
727.10 	(8) when appropriate, evaluating potential routes that would use or parallel existing 
727.11 	railroad and highway rights-of-way;
727.12 	(9) evaluating governmental survey lines and other natural division lines of agricultural 
727.13 	land to minimize interference with agricultural operations;
727.14 	(10) evaluating the future needs for large energy infrastructure facilities in the same 
727.15 	general area as any proposed site or route;
727.16 	(11) evaluating irreversible and irretrievable commitments of resources if the proposed 
727.17 	site or route is approved;
727.18 	(12) when appropriate, considering the potential impacts raised by other state and federal 
727.19 	agencies and local entities;
727.20 	(13) evaluating the benefits of the proposed facility with respect to (i) the protection and 
727.21 	enhancement of environmental quality, and (ii) the reliability of state and regional energy 
727.22 	supplies;
727.23 	(14) evaluating the proposed facility's impact on socioeconomic factors; and
727.24 	(15) evaluating the proposed facility's employment and economic impacts in the facility 
727.25 	site's vicinity and throughout Minnesota, including the quantity, quality, and compensation 
727.26 	level of construction and permanent jobs. The commission must consider a facility's local 
727.27 	employment and economic impacts, and may reject or place conditions on a site or route 
727.28 	permit based on the local employment and economic impacts.
727.29 	(c) If the commission's rules are substantially similar to existing federal agency 
727.30 	regulations the utility is subject to, the commission must apply the federal regulations.
728.1 	(d) The commission is prohibited from designating a site or route that violates state 
728.2 	agency rules.
728.3 	(e) When applicable, the commission must make a specific finding that the commission 
728.4 	considered locating a route for a high-voltage transmission line on an existing high-voltage 
728.5 	transmission route and using parallel existing highway right-of-way. To the extent an existing 
728.6 	high-voltage transmission route or parallel existing right-of-way is not used for the route, 
728.7 	the commission must state the reasons.
728.8 		Subd. 12.Final decision. (a) The commission must issue a site or route permit that is 
728.9 	demonstrated to be in the public interest pursuant to this chapter. The commission may 
728.10 	require any reasonable conditions in the site or route permit that are necessary to protect 
728.11 	the public interest. The commission maintains continuing jurisdiction over the route and 
728.12 	site permits and any conditions contained in the route and site permits.
728.13 	(b) The commission is prohibited from issuing a site permit in violation of the site 
728.14 	selection standards and criteria established under this section and in rules the commission 
728.15 	adopts. When the commission designates a site, the commission must issue a site permit to 
728.16 	the applicant with any appropriate conditions. The commission must publish a notice of the 
728.17 	commission's decision in the Environmental Quality Board Monitor within 30 days of the 
728.18 	date the commission issues the site permit.
728.19 	(c) The commission is prohibited from issuing a route permit in violation of the route 
728.20 	selection standards and criteria established under this section and in rules the commission 
728.21 	adopts. When the commission designates a route, the commission must issue a permit for 
728.22 	the construction of a high-voltage transmission line that specifies the design, routing, 
728.23 	right-of-way preparation, and facility construction the commission deems necessary, 
728.24 	including any other appropriate conditions. The commission may order the construction of 
728.25 	high-voltage transmission line facilities that are capable of expanding transmission capacity 
728.26 	through multiple circuiting or design modifications. The commission must publish a notice 
728.27 	of the commission's decision in the Environmental Quality Board Monitor within 30 days 
728.28 	of the date the commission issues the route permit.
728.29 	(d) The commission must require as a condition of permit issuance, including the issuance 
728.30 	of a modified permit for a repowering project, as defined in section 216B.243, subdivision 
728.31 	8, paragraph (b), that the recipient of a site or route permit to construct an energy 
728.32 	infrastructure facility, including all of the permit recipient's construction contractors and 
728.33 	subcontractors on the project: (1) must pay no less than the prevailing wage rate, as defined 
729.1 	in section 177.42; and (2) is subject to the requirements and enforcement provisions under 
729.2 	sections 177.27, 177.30, 177.32, 177.41 to 177.435, and 177.45.
729.3 	(e) Immediately following the commission's vote granting an applicant a site or route 
729.4 	permit, and prior to issuance of a written commission order embodying the decision, the 
729.5 	applicant may submit to commission staff for review preconstruction compliance filings 
729.6 	specifying details of the applicant's proposed site or route operations.
729.7 		Subd. 13.Commission; technical expertise and other assistance. (a) The commission 
729.8 	must consult with other state agencies and obtain technical expertise and other assistance 
729.9 	for activities and proceedings under this chapter.
729.10 	(b) Notwithstanding the requirements of section 216B.33, employees of the commission 
729.11 	may take any action related to the requirements of this chapter immediately following a 
729.12 	hearing and vote by the commission, prior to issuing a written order, finding, authorization, 
729.13 	or certification.

729.14 	Sec. 6. [216I.06] APPLICATIONS; MAJOR REVIEW.
729.15 		Subdivision 1.Environmental review. (a) The commission must prepare an 
729.16 	environmental impact statement on each proposed large energy infrastructure facility for 
729.17 	which a complete application has been submitted. An environmental impact statement means 
729.18 	a detailed written statement that describes a large energy infrastructure facility and satisfies 
729.19 	the requirements of section 116D.04. For the purposes of environmental review, the 
729.20 	commission is prohibited from considering whether or not the project is needed. No other 
729.21 	state environmental review documents are required. The commission must study and evaluate 
729.22 	any site or route identified by the commission under section 216I.05, subdivision 10, clause 
729.23 	(2).
729.24 	(b) For a cogeneration facility, as defined in section 216H.01, subdivision 1a, that is a 
729.25 	large electric power generating plant and is not proposed by a utility, the commission must 
729.26 	make a finding in the environmental impact statement whether the project is likely to result 
729.27 	in a net reduction of carbon dioxide emissions, considering both the utility providing electric 
729.28 	service to the proposed cogeneration facility and any reduction in carbon dioxide emissions 
729.29 	resulting from increased efficiency from thermal energy production on the part of the 
729.30 	customer that operates or owns the proposed cogeneration facility.
729.31 	(c) The commission must publish a draft environmental impact statement and a scoping 
729.32 	document for the environmental impact statement under section 216I.05, subdivision 10. 
730.1 	The public may provide comments on the draft environmental impact statement at the public 
730.2 	hearing and comment period under subdivision 2.
730.3 	(d) The commission must publish a final environmental impact statement responding to 
730.4 	the timely substantive comments on the draft environmental impact statement consistent 
730.5 	with the scope approved by the commission under section 216I.05, subdivision 10, clause 
730.6 	(2). The final environmental impact statement must discuss at appropriate points in the final 
730.7 	environmental impact statement any reasonable opposing views relating to scoping issues 
730.8 	that were not adequately discussed in the draft environmental impact statement and must 
730.9 	indicate a response to the reasonable opposing views. When making the commission's final 
730.10 	decision, the commission must consider the final environmental impact statement and the 
730.11 	entirety of the record related to human and environmental impacts.
730.12 	(e) The commission must determine the adequacy of the final environmental impact 
730.13 	statement. The commission must not decide the adequacy for at least ten days after the 
730.14 	availability of the final environmental impact statement is announced in the EQB Monitor. 
730.15 	The final environmental impact statement is adequate if the final environmental impact 
730.16 	statement:
730.17 	(1) addresses the issues and alternatives raised in scoping;
730.18 	(2) provides responses to the timely substantive comments received during the draft 
730.19 	environmental impact statement review process; and
730.20 	(3) was prepared in compliance with the procedures in sections 216I.05 and 216I.06.
730.21 	If the commission finds that the environmental impact statement is not adequate, the 
730.22 	commission must direct staff to respond to the deficiencies and resubmit the revised 
730.23 	environmental impact statement to the commission as soon as possible.
730.24 		Subd. 2.Public hearing. (a) No sooner than 15 days after the date the draft environmental 
730.25 	impact statement is published, the commission must hold a public hearing on an application 
730.26 	for a large energy infrastructure facility site or route permit. A hearing held to designate a 
730.27 	site or route must be conducted by an administrative law judge from the Office of 
730.28 	Administrative Hearings.
730.29 	(b) The commission may designate a portion of the hearing to be conducted as a contested 
730.30 	case proceeding under chapter 14.
730.31 	(c) The commission must provide notice of the hearing at least ten days before but no 
730.32 	earlier than 45 days before the date the hearing commences. The commission must provide 
730.33 	notice by (1) publishing in a legal newspaper of general circulation in the county in which 
731.1 	the public hearing is to be held, (2) mailing to chief executives of the regional development 
731.2 	commissions, counties, organized towns, townships, and incorporated municipalities in 
731.3 	which a site or route is proposed, and (3) Tribal governments as defined by section 10.65, 
731.4 	subdivision 2.
731.5 	(d) Any person may appear at the hearings and offer testimony and exhibits without the 
731.6 	necessity of intervening as a formal party to the proceedings. The administrative law judge 
731.7 	may allow any person to ask questions of other witnesses.
731.8 	(e) The administrative law judge must hold a portion of the hearing in the area where 
731.9 	the large energy infrastructure facility's location is proposed.
731.10 	(f) The commission and administrative law judge must accept written comments for at 
731.11 	least 20 days after the public hearing's date.
731.12 		Subd. 3.Administrative law judge report. The administrative law judge must issue a 
731.13 	report and recommendations after completion of post-hearing briefing or the date the public 
731.14 	comment period under subdivision 2 closes, whichever is later.
731.15 		Subd. 4.Timing. The commission must make a final decision on an application within 
731.16 	60 days of the date the administrative law judge's report is received. A final decision on the 
731.17 	site or route permit request must be made within one year of the date the commission 
731.18 	determines an application is complete. The commission may extend the time limit under 
731.19 	this subdivision for up to three months for just cause or upon agreement with the applicant.

731.20 	Sec. 7. [216I.07] APPLICATIONS; STANDARD REVIEW.
731.21 		Subdivision 1.Standard review. An applicant who seeks a site or route permit for which 
731.22 	the applicant's proposal is one of the projects identified in this section may follow the 
731.23 	procedures under this section in lieu of the procedures under section 216I.06. The applicant 
731.24 	must notify the commission at the time the application is submitted which procedure the 
731.25 	applicant has elected to follow.
731.26 		Subd. 2.Applicable projects. The requirements and procedures under this section apply 
731.27 	to projects for which the applicant's proposal is:
731.28 	(1) large electric power generating plants with a capacity of less than 80 megawatts;
731.29 	(2) large electric power generating plants that are fueled by natural gas;
731.30 	(3) high-voltage transmission lines with a capacity between 100 and 300 kilovolts;
731.31 	(4) high-voltage transmission lines with a capacity in excess of 300 kilovolts and less 
731.32 	than 30 miles in length in Minnesota;
732.1 	(5) high-voltage transmission lines with a capacity in excess of 300 kilovolts, if at least 
732.2 	80 percent of the distance of the line in Minnesota, as proposed by the applicant, is located 
732.3 	along existing high-voltage transmission line right-of-way;
732.4 	(6) solar energy systems;
732.5 	(7) energy storage systems; and
732.6 	(8) large wind energy conversion systems.
732.7 		Subd. 3.Environmental review. (a) For the projects identified in subdivision 2 and 
732.8 	following the procedures under this section, the applicant must prepare and submit an 
732.9 	environmental assessment with the application. A draft of the environmental assessment 
732.10 	must also be provided to commission staff as part of the preapplication review under section 
732.11 	216I.05, subdivision 6. The environmental assessment must (1) contain information regarding 
732.12 	the proposed project's human and environmental impacts, and (2) address mitigating measures 
732.13 	for identified impacts. The environmental assessment is the only state environmental review 
732.14 	document that must be prepared for the proposed project.
732.15 	(b) If after the public meeting the commission identifies other sites or routes or potential 
732.16 	impacts for review, the commission must prepare an addendum to the environmental 
732.17 	assessment that evaluates (1) the human and environmental impacts of the alternative site 
732.18 	or route, and (2) any additional mitigating measures related to the identified impacts 
732.19 	consistent with the scoping decision made pursuant to section 216I.06, subdivision 10, 
732.20 	clause (2). The public may provide comments on the environmental assessment and any 
732.21 	addendum to the environmental assessment at the public hearing and comment period under 
732.22 	subdivision 4. When making the commission's final decision, the commission must consider 
732.23 	the environmental assessment, the environmental assessment addendum, if any, and the 
732.24 	entirety of the record related to human and environmental impacts.
732.25 		Subd. 4.Public hearing. (a) After the commission issues any environmental assessment 
732.26 	addendum and a draft permit under section 216I.05, subdivision 10, the commission must 
732.27 	hold a public hearing in the area where the facility's location is proposed.
732.28 	(b) The commission must provide notice of the public hearing in the same manner as 
732.29 	required under section 216I.06, subdivision 2.
732.30 	(c) The commission must conduct the public hearing under procedures established by 
732.31 	the commission and may request that an administrative law judge from the Office of 
732.32 	Administrative Hearings conduct the hearing and prepare a report.
733.1 	(d) The applicant must be present at the hearing to present evidence and to answer 
733.2 	questions. The commission must provide opportunity at the public hearing for any person 
733.3 	to present comments and to ask questions of the applicant and commission staff. The 
733.4 	commission must also provide interested persons an opportunity to submit written comments 
733.5 	into the record after the public hearing.
733.6 		Subd. 5.Timing. (a) The commission must make a final decision on an application 
733.7 	within 60 days of the date the public comment period following completion of the public 
733.8 	hearing closes, or the date the report is filed, whichever is later. A final decision on the 
733.9 	request for a site or route permit under this section must be made within six months of the 
733.10 	date the commission determines the application is complete. The commission may extend 
733.11 	the time limit under this subdivision for up to three months for just cause or upon agreement 
733.12 	with the applicant.
733.13 	(b) Immediately following the commission's vote granting an applicant a site or route 
733.14 	permit, and prior to issuance of a written commission order embodying the decision, the 
733.15 	applicant may submit to commission staff for review preconstruction compliance filings 
733.16 	specifying details of the applicant's proposed site or route operations.

733.17 	Sec. 8. [216I.08] APPLICATIONS; LOCAL REVIEW.
733.18 		Subdivision 1.Local review authorized. (a) Notwithstanding sections 216I.06 and 
733.19 	216I.07, an applicant who seeks a site or route permit for one of the projects identified in 
733.20 	subdivision 2 may apply to the local units of government that have jurisdiction over the site 
733.21 	or route for approval to build the project. If local approval is granted, a site or route permit 
733.22 	is not required from the commission. If the applicant files an application with the commission, 
733.23 	the applicant waives the applicant's right to seek local approval for the project.
733.24 	(b) A local unit of government with jurisdiction over a project identified in this section 
733.25 	to whom an applicant has applied for approval to build the project may request that the 
733.26 	commission assume jurisdiction and make a decision on a site or route permit pursuant to 
733.27 	the applicable provisions under this chapter. A local unit of government must file the request 
733.28 	with the commission within 60 days of the date an applicant files an application for the 
733.29 	project with any one local unit of government. If one of the local units of government with 
733.30 	jurisdiction over the project requests that the commission assume jurisdiction, jurisdiction 
733.31 	over the project transfers to the commission. If the local units of government maintain 
733.32 	jurisdiction over the project, the commission must select the appropriate local unit of 
733.33 	government to be the responsible governmental unit to conduct the project's environmental 
733.34 	review.
734.1 		Subd. 2.Applicable projects. An applicant may seek approval under this section from 
734.2 	a local unit of government to construct:
734.3 	(1) large electric power generating plants and solar energy generating systems with a 
734.4 	capacity of less than 80 megawatts;
734.5 	(2) large electric power generating plants of any size that burn natural gas and are intended 
734.6 	to be a peaking plant;
734.7 	(3) high-voltage transmission lines with a capacity between 100 and 200 kilovolts;
734.8 	(4) substations with a voltage designed for and capable of operation at a nominal voltage 
734.9 	of 100 kilovolts or more;
734.10 	(5) a high-voltage transmission line service extension to a single customer between 200 
734.11 	and 300 kilovolts and less than ten miles in length;
734.12 	(6) a high-voltage transmission line rerouting to serve the demand of a single customer, 
734.13 	if at least 80 percent of the rerouted line is located on property owned or controlled by the 
734.14 	customer or the owner of the transmission line;
734.15 	(7) energy storage systems; and
734.16 	(8) large wind energy conversion systems with a capacity less than 25 megawatts.
734.17 		Subd. 3.Notice of application. An applicant must notify the commission that the 
734.18 	applicant has elected to seek local approval of the proposed project within ten days of the 
734.19 	date the applicant submits an application to a local unit of government to approve an eligible 
734.20 	project.
734.21 		Subd. 4.Environmental review. (a) A local unit of government that maintains 
734.22 	jurisdiction over a qualifying project must prepare or request that the applicant prepare an 
734.23 	environmental assessment on the project. The local unit of government must afford the 
734.24 	public an opportunity to participate in developing the scope of the environmental assessment 
734.25 	before the environmental assessment is prepared.
734.26 	(b) Upon completing the environmental assessment, the local unit of government must 
734.27 	publish notice in the EQB Monitor that indicates (1) the environmental assessment is 
734.28 	available for review, (2) how a copy of the document may be reviewed, (3) that the public 
734.29 	may comment on the document, and (4) the procedure for submitting comments to the local 
734.30 	unit of government. Upon completion of the environmental assessment, the local unit of 
734.31 	government must provide a copy of the environmental assessment to the commission.
735.1 	(c) The local unit of government is prohibited from making a final decision on the permit 
735.2 	until at least ten days after the date the notice appears in the EQB Monitor. If more than 
735.3 	one local unit of government has jurisdiction over a project and the local units of government 
735.4 	cannot agree which local unit of government prepares the environmental assessment, any 
735.5 	local unit of government or the applicant may request that the commission select the 
735.6 	appropriate local unit of government to be the responsible governmental unit to conduct an 
735.7 	environmental review of the project.

735.8 	Sec. 9. [216I.09] PERMIT AMENDMENTS.
735.9 		Subdivision 1.Applicability. This section applies to a request by the owner of the large 
735.10 	energy infrastructure facility to modify any provision or condition of a site or route permit 
735.11 	issued by the commission, including the following:
735.12 	(1) upgrades or rebuilds an existing electric line and associated facilities to a voltage 
735.13 	capable of operating between 100 kilovolts and 300 kilovolts that does not result in significant 
735.14 	changes in the human and environmental impact of the facility; or
735.15 	(2) repowers or refurbishes a large electric power generating plant, a large wind energy 
735.16 	conversion system, a solar energy generating system, or an energy storage system that 
735.17 	increases the efficiency of the system, provided the project does not increase the developed 
735.18 	area within the permitted site or increase the nameplate capacity of the facility's most recent 
735.19 	interconnection agreement. For a large electric power generating plant, an increase in 
735.20 	efficiency is a reduction in the amount of British thermal units required to produce a kilowatt 
735.21 	hour of electricity at the facility.
735.22 		Subd. 2.Application. A person that seeks authorization to amend a large energy 
735.23 	infrastructure facility must apply to the commission. The application must be in writing and 
735.24 	must (1) describe the alteration to be made or the amendment sought, and (2) explain why 
735.25 	the request meets the eligibility criteria under subdivision 1. The application must describe 
735.26 	any changes to the environmental impacts evaluated by the commission as part of the initial 
735.27 	permit approval. If there are significant changes to the environmental impacts evaluated by 
735.28 	the commission as part of the initial permit approval, environmental review must be 
735.29 	conducted pursuant to the applicable requirements of Minnesota Rules, chapter 4410 and 
735.30 	parts 7849.1000 to 7849.2100.
735.31 		Subd. 3.Notice. The commission must mail notice that the application was received to 
735.32 	the persons on the general list and to the persons on the project contact list, if a project list 
735.33 	exists.
736.1 		Subd. 4.Public comment. The commission must provide at least a ten-day period for 
736.2 	interested persons to submit comments on the application or to request that the matter be 
736.3 	brought to the commission for consideration. The applicant may respond to submitted 
736.4 	comments within seven days of the date the comment period closes.
736.5 		Subd. 5.Timing. Within 30 days of the date the applicant responds to submitted 
736.6 	comments under subdivision 4, the commission must decide whether to authorize the permit 
736.7 	amendment, bring the matter to the commission for consideration, or determine that the 
736.8 	application requires a permitting decision under another section in this chapter.
736.9 		Subd. 6.Decision. The commission may authorize an amendment but impose reasonable 
736.10 	conditions on the approval. The commission must notify the applicant in writing of the 
736.11 	commission's decision and send a copy of the decision to any person who requested 
736.12 	notification or filed comments on the application.
736.13 		Subd. 7.Local review. For a large electric power generating plant or high-voltage 
736.14 	transmission line that was not issued a permit by the commission, the owner or operator of 
736.15 	the nonpermitted facility may seek approval of a project listed under subdivision 1 from 
736.16 	the local unit of government if the facility qualifies for standard review under section 216I.07 
736.17 	or local review under section 216I.08.

736.18 	Sec. 10. [216I.10] EXEMPT PROJECTS.
736.19 		Subdivision 1.Permit not required. A permit issued by the commission is not required 
736.20 	to construct:
736.21 	(1) a small wind energy conversion system;
736.22 	(2) a power plant or solar energy generating system with a capacity of less than 50 
736.23 	megawatts;
736.24 	(3) an energy storage system with a capacity of less than ten megawatts;
736.25 	(4) a transmission line that (i) has a capacity of 100 kilovolts or more, and (ii) is less 
736.26 	than 1,500 feet in length; and
736.27 	(5) a transmission line that has a capacity of less than 100 kilovolts.
736.28 		Subd. 2.Other approval. A person that proposes a facility listed in subdivision 1 must 
736.29 	(1) obtain any approval required by local, state, or federal units of government with 
736.30 	jurisdiction over the project, and (2) comply with the environmental review requirements 
736.31 	under chapter 116D and Minnesota Rules, chapter 4410.

737.1 	Sec. 11. [216I.11] PERMITTING REQUIREMENTS; EXCEPTIONS FOR CERTAIN 
737.2 	FACILITIES.
737.3 		Subdivision 1.Permit not required. The following projects do not constitute the 
737.4 	construction of a large energy infrastructure facility and may be constructed without a permit 
737.5 	issued by the commission:
737.6 	(1) maintaining or repairing an existing large energy infrastructure facility within an 
737.7 	existing site or right-of-way;
737.8 	(2) adding equipment at an existing substation that does not (i) require more than a 
737.9 	one-acre expansion of the land needed for the substation, and (ii) involve an increase in the 
737.10 	voltage or changes in the location of existing transmission lines, except that up to the first 
737.11 	five transmission line structures outside the substation may be moved to accommodate the 
737.12 	equipment additions, provided the structures are not moved more than 500 feet from the 
737.13 	existing right-of-way;
737.14 	(3) reconductoring or reconstructing a high-voltage transmission line that does not result 
737.15 	in a change to voltage or a change in right-of-way;
737.16 	(4) relocating a high-voltage transmission line that is required by a local or state agency 
737.17 	as part of road, street, or highway construction;
737.18 	(5) converting the fuel source of a large electric power generating plant to natural gas, 
737.19 	provided the plant is not expanded beyond the developed portion of the plant site; and
737.20 	(6) starting up an existing large electric power generating plant that has been closed for 
737.21 	any period of time at no more than the large electric power generating plant's previous 
737.22 	capacity rating and in a manner that does not involve changing the fuel or expanding the 
737.23 	developed portion of the plant site.
737.24 		Subd. 2.Amendment. If a modification or other change to an existing large energy 
737.25 	infrastructure facility does not qualify for an exception under subdivision 1, the modification 
737.26 	or change may qualify as an amendment under section 216I.09.
737.27 		Subd. 3.Notice. A person that proposes to implement changes to a large energy 
737.28 	infrastructure facility under subdivision 1, clauses (2) to (5), must notify the commission 
737.29 	in writing at least 30 days before commencing construction of the modification or change.

737.30 	Sec. 12. [216I.13] PERMIT TRANSFER.
737.31 		Subdivision 1.Application. A permittee holding a large energy infrastructure facility 
737.32 	site or route permit may request that the commission transfer the permittee's permit. The 
738.1 	permittee must provide the name of the existing permittee, the name and description of the 
738.2 	entity to which the permit is to be transferred, the reasons for the transfer, a description of 
738.3 	the facilities affected, and the proposed effective date of the transfer. The person to whom 
738.4 	the permit is to be transferred must provide the commission with information the commission 
738.5 	requires to determine whether the new permittee is able to comply with the permit's 
738.6 	conditions. The commission must mail notice of receipt of the application to the persons 
738.7 	on the general list at least seven days in advance of the date the commission considers the 
738.8 	matter. The commission must provide the same notice to persons on the project contact list 
738.9 	if a project contact list exists.
738.10 		Subd. 2.Approval of transfer. The commission must approve the transfer if the 
738.11 	commission determines that the new permittee complies with the conditions of the permit. 
738.12 	The commission, in approving the transfer of a permit, may impose reasonable additional 
738.13 	conditions in the permit as part of the approval. The commission may decide to hold a public 
738.14 	meeting to provide the public with an opportunity to comment on the request for the transfer 
738.15 	prior to making a decision.

738.16 	Sec. 13. [216I.14] PERMIT REVOCATION OR SUSPENSION.
738.17 		Subdivision 1.Initiation of action to revoke or suspend. The commission may initiate 
738.18 	action to consider revoking or suspending a permit on the commission's own motion or 
738.19 	upon the request of any person who has made a prima facie showing by affidavit and 
738.20 	documentation that a violation of this act or the permit has occurred.
738.21 		Subd. 2.Hearing. If the commission initiates action to consider revoking or suspending 
738.22 	a permit, the commission must provide the permittee with an opportunity for a contested 
738.23 	case hearing conducted by an administrative law judge from the Office of Administrative 
738.24 	Hearings.
738.25 		Subd. 3.Finding of violation. If the commission finds that a violation of this act or the 
738.26 	permit has occurred, the commission may revoke or suspend the permit, require the permittee 
738.27 	to undertake corrective or ameliorative measures as a condition to avoid revocation or 
738.28 	suspension, or require corrective measures and suspend the permit. When determining the 
738.29 	appropriate sanction, the commission must consider whether:
738.30 	(1) the violation results in any significant additional adverse environmental effects;
738.31 	(2) the results of the violation can be corrected or ameliorated; and
738.32 	(3) suspending or revoking a permit impairs the permittee's electrical power system 
738.33 	reliability.

739.1 	Sec. 14. REVISOR INSTRUCTION.
 739.2 	The revisor shall renumber each section of Minnesota Statutes in Column A with the 
739.3 	number in Column B.

739.4		Column A
	Column B
	
739.5		216E.06
	216I.12
	
739.6		216E.07
	216I.15
	
739.7		216E.08, subdivision 2
	216I.16, subdivision 1
	
739.8		216E.08, subdivision 3
	216I.16, subdivision 2
	
739.9		216E.09
	216I.17
	
739.10		216E.10
	216I.18
	
739.11		216F.084
	216I.19
	
739.12		216E.11
	216I.20
	
739.13		216E.12
	216I.21
	
739.14		216E.03, subdivision 8
	216I.22
	
739.15		216E.13
	216I.23
	
739.16		216E.14
	216I.24
	
739.17		216E.15
	216I.25
	
739.18		216E.16
	216I.26
	
739.19		216E.17
	216I.27
	
739.20		216E.18, subdivision 2a
	216I.28, subdivision 1
	
739.21		216E.18, subdivision 3
	216I.28, subdivision 2

739.22 	Sec. 15. REPEALER.
 739.23 		Subdivision 1.Minnesota Statutes, chapter 216E, repeals. (a) Minnesota Statutes 
739.24 	2022, sections 216E.001; 216E.01, subdivisions 1, 2, 3, 4, 5, 7, 8, 9, and 10; 216E.02; 
739.25 	216E.021; 216E.03, subdivisions 2, 3a, 3b, 4, and 9; 216E.04, subdivisions 1, 3, 4, 5, 6, 7, 
739.26 	8, and 9; 216E.05, subdivisions 1 and 3; 216E.08, subdivisions 1 and 4; and 216E.18, 
739.27 	subdivisions 1 and 2, are repealed.
739.28 	(b) Minnesota Statutes 2023 Supplement, sections 216E.01, subdivisions 3a, 6, and 9a; 
739.29 	216E.03, subdivisions 1, 3, 5, 6, 7, 10, and 11; 216E.04, subdivision 2; and 216E.05, 
739.30 	subdivision 2, are repealed.
739.31 		Subd. 2.Minnesota Statutes, chapter 216F, repeals. (a) Minnesota Statutes 2022, 
739.32 	sections 216F.01; 216F.011; 216F.012; 216F.015; 216F.02; 216F.03; 216F.05; 216F.06; 
739.33 	216F.07; 216F.08; and 216F.081, are repealed.
739.34 	(b) Minnesota Statutes 2023 Supplement, section 216F.04, is repealed.
740.1 		Subd. 3.Minnesota Rules, chapter 7854, repeals. Minnesota Rules, parts 7854.0100; 
740.2 	7854.0200; 7854.0300; 7854.0400; 7854.0500; 7854.0600; 7854.0700; 7854.0800; 
740.3 	7854.0900; 7854.1000; 7854.1100; 7854.1200; 7854.1300; 7854.1400; and 7854.1500, are 
740.4 	repealed.
740.5 		Subd. 4.Minnesota Rules, chapter 7850, repeals. Minnesota Rules, parts 7850.1000; 
740.6 	7850.1100; 7850.1200; 7850.1300; 7850.1400; 7850.1500; 7850.1600; 7850.1700; 
740.7 	7850.1800; 7850.1900; 7850.2000; 7850.2100; 7850.2200; 7850.2300; 7850.2400; 
740.8 	7850.2500; 7850.2600; 7850.2700; 7850.2800; 7850.2900; 7850.3000; 7850.3100; 
740.9 	7850.3200; 7850.3300; 7850.3400; 7850.3500; 7850.3600; 7850.3700; 7850.3800; 
740.10 	7850.3900; 7850.4100; 7850.4200; 7850.4500; 7850.4600; 7850.4700; 7850.4800; 
740.11 	7850.4900; 7850.5000; 7850.5100; 7850.5200; 7850.5300; 7850.5400; 7850.5500; and 
740.12 	7850.5600, are repealed.

740.13 	Sec. 16. EFFECTIVE DATE.
 740.14 	This article is effective July 1, 2025.

740.15 	ARTICLE 44
740.16 	CERTIFICATES OF NEED

740.17 	Section 1. Minnesota Statutes 2022, section 216B.2421, subdivision 2, is amended to read:
740.18 		Subd. 2.Large energy facility. "Large energy facility" means:
740.19 	(1) any electric power generating plant or combination of plants at a single site with a 
740.20 	combined capacity of 50,000 kilowatts or more and transmission lines directly associated 
740.21 	with the plant that are necessary to interconnect the plant to the transmission system;
740.22 	(2) any high-voltage transmission line with a capacity of 200 300 kilovolts or more and 
740.23 	greater than 1,500 feet one mile in length in Minnesota;
740.24 	(3) any high-voltage transmission line with a capacity of 100 kilovolts or more with 
740.25 	more than ten miles of its length in Minnesota or that crosses a state line;
740.26 	(4) any pipeline greater than six inches in diameter and having more than 50 miles of 
740.27 	its length in Minnesota used for the transportation of coal, crude petroleum or petroleum 
740.28 	fuels or oil, or their derivatives;
740.29 	(5) any pipeline for transporting natural or synthetic gas at pressures in excess of 200 
740.30 	pounds per square inch with more than 50 miles of its length in Minnesota;
741.1 	(6) any facility designed for or capable of storing on a single site more than 100,000 
741.2 	gallons of liquefied natural gas or synthetic gas;
741.3 	(7) any underground gas storage facility requiring a permit pursuant to section 103I.681;
741.4 	(8) any nuclear fuel processing or nuclear waste storage or disposal facility; and
741.5 	(9) any facility intended to convert any material into any other combustible fuel and 
741.6 	having the capacity to process in excess of 75 tons of the material per hour.

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

741.8 	Sec. 2. Minnesota Statutes 2022, section 216B.243, subdivision 3, is amended to read:
741.9 		Subd. 3.Showing required for construction. No proposed large energy facility shall 
741.10 	be certified for construction unless the applicant can show that demand for electricity cannot 
741.11 	be met more cost effectively through energy conservation and load-management measures 
741.12 	and unless the applicant has otherwise justified its need. In assessing need, the commission 
741.13 	shall evaluate:
741.14 	(1) the accuracy of the long-range energy demand forecasts on which the necessity for 
741.15 	the facility is based;
741.16 	(2) the effect of existing or possible energy conservation programs under sections 216C.05
741.17 	to 216C.30 and this section or other federal or state legislation on long-term energy demand;
741.18 	(3) the relationship of the proposed facility to overall state energy needs, as described 
741.19 	in the most recent state energy policy and conservation report prepared under section 
741.20 	216C.18, or, in the case of a high-voltage transmission line, the relationship of the proposed 
741.21 	line to regional energy needs, as presented in the transmission plan submitted under section 
741.22 	216B.2425;
741.23 	(4) promotional activities that may have given rise to the demand for this facility;
741.24 	(5) benefits of this facility, including its uses to protect or enhance environmental quality, 
741.25 	and to increase reliability of energy supply in Minnesota and the region;
741.26 	(6) possible alternatives for satisfying the energy demand or transmission needs including 
741.27 	but not limited to potential for increased efficiency and upgrading of existing energy 
741.28 	generation and transmission facilities, load-management programs, and distributed generation, 
741.29 	except that the commission must not require evaluation of alternative end points for a 
741.30 	high-voltage transmission line qualifying as a large energy facility unless the alternative 
741.31 	end points are (i) consistent with end points identified in a federally registered planning 
741.32 	authority transmission plan, or (ii) otherwise agreed to for further evaluation by the applicant;
742.1 	(7) the policies, rules, and regulations of other state and federal agencies and local 
742.2 	governments;
742.3 	(8) any feasible combination of energy conservation improvements, required under 
742.4 	section 216B.241, that can (i) replace part or all of the energy to be provided by the proposed 
742.5 	facility, and (ii) compete with it economically;
742.6 	(9) with respect to a high-voltage transmission line, the benefits of enhanced regional 
742.7 	reliability, access, or deliverability to the extent these factors improve the robustness of the 
742.8 	transmission system or lower costs for electric consumers in Minnesota;
742.9 	(10) whether the applicant or applicants are in compliance with applicable provisions 
742.10 	of sections 216B.1691 and 216B.2425, subdivision 7, and have filed or will file by a date 
742.11 	certain an application for certificate of need under this section or for certification as a priority 
742.12 	electric transmission project under section 216B.2425 for any transmission facilities or 
742.13 	upgrades identified under section 216B.2425, subdivision 7;
742.14 	(11) whether the applicant has made the demonstrations required under subdivision 3a; 
742.15 	and
742.16 	(12) if the applicant is proposing a nonrenewable generating plant, the applicant's 
742.17 	assessment of the risk of environmental costs and regulation on that proposed facility over 
742.18 	the expected useful life of the plant, including a proposed means of allocating costs associated 
742.19 	with that risk.

742.20 	EFFECTIVE DATE. This section is effective the day following final enactment and 
742.21 	applies to all pending applications.

742.22 	Sec. 3. Minnesota Statutes 2022, section 216B.243, subdivision 3a, is amended to read:
742.23 		Subd. 3a.Use of renewable resource. The commission may not issue a certificate of 
742.24 	need under this section for a large energy facility that generates electric power by means 
742.25 	of a nonrenewable energy source, or that transmits electric power generated by means of a 
742.26 	nonrenewable energy source, unless the applicant for the certificate has demonstrated to 
742.27 	the commission's satisfaction that it has explored the possibility of generating power by 
742.28 	means of renewable energy sources and has demonstrated that the alternative selected is 
742.29 	less expensive (, including environmental costs), than power generated by a renewable 
742.30 	energy source. For purposes of this subdivision, "renewable energy source" includes hydro, 
742.31 	wind, solar, and geothermal energy and the use of trees or other vegetation as fuel.

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

743.1 	Sec. 4. Minnesota Statutes 2022, section 216B.243, subdivision 4, is amended to read:
743.2 		Subd. 4.Application for certificate; hearing. Any person proposing to construct a 
743.3 	large energy facility shall apply for a certificate of need and for a site or route permit under 
743.4 	chapter 216E 216I prior to construction of the facility. The application shall be on forms 
743.5 	and in a manner established by the commission. In reviewing each application the commission 
743.6 	shall hold at least one public hearing pursuant to chapter 14. The public hearing shall be 
743.7 	held at a location and hour reasonably calculated to be convenient for the public. An objective 
743.8 	of the public hearing shall be to obtain public opinion on the necessity of granting a certificate 
743.9 	of need and, if a joint hearing is held, a site or route permit. The commission shall designate 
743.10 	a commission employee whose duty shall be to facilitate citizen participation in the hearing 
743.11 	process. Unless the commission determines that a joint hearing on siting and need under 
743.12 	this subdivision and section 216E.03, subdivision 6 chapter 216I, is not feasible or more 
743.13 	efficient, or otherwise not in the public interest, a joint hearing under those subdivisions 
743.14 	shall this subdivision and chapter 216I must be held.

743.15 	EFFECTIVE DATE. This section is effective July 1, 2025.

743.16 	Sec. 5. Minnesota Statutes 2023 Supplement, section 216B.243, subdivision 8, is amended 
743.17 	to read:
743.18 		Subd. 8.Exemptions. (a) This section does not apply to:
743.19 	(1) cogeneration or small power production facilities as defined in the Federal Power 
743.20 	Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and 
743.21 	paragraph (18), subparagraph (A), and having a combined capacity at a single site of less 
743.22 	than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or 
743.23 	any case where the commission has determined after being advised by the attorney general 
743.24 	that its application has been preempted by federal law;
743.25 	(2) a high-voltage transmission line proposed primarily to distribute electricity to serve 
743.26 	the demand of a single customer at a single location, unless the applicant opts to request 
743.27 	that the commission determine need under this section or section 216B.2425;
743.28 	(3) the upgrade to a higher voltage of an existing transmission line that serves the demand 
743.29 	of a single customer that primarily uses existing rights-of-way, unless the applicant opts to 
743.30 	request that the commission determine need under this section or section 216B.2425;
743.31 	(4) a high-voltage transmission line of one mile or less required to connect a new or 
743.32 	upgraded substation to an existing, new, or upgraded high-voltage transmission line;
744.1 	(5) conversion of the fuel source of an existing electric generating plant to using natural 
744.2 	gas;
744.3 	(6) the modification of an existing electric generating plant to increase efficiency, as 
744.4 	long as the capacity of the plant is not increased more than ten percent or more than 100 
744.5 	megawatts, whichever is greater;
744.6 	(7) a large wind energy conversion system, as defined in section 216F.01, subdivision 
744.7 	2 216I.02, subdivision 12, or a solar energy generating system, as defined in section 216E.01, 
744.8 	subdivision 9a 216I.02, subdivision 18, for which a site permit application is submitted by 
744.9 	an independent power producer under chapter 216E or 216F 216I; or
744.10 	(8) a large wind energy conversion system, as defined in section 216F.01, subdivision 
744.11 	2 216I.02, subdivision 12, or a solar energy generating system that is a large energy facility, 
744.12 	as defined in section 216B.2421, subdivision 2 216I.02, subdivision 18, engaging in a 
744.13 	repowering project that:
744.14 	(i) will not result in the system exceeding the nameplate capacity under its most recent 
744.15 	interconnection agreement; or
744.16 	(ii) will result in the system exceeding the nameplate capacity under its most recent 
744.17 	interconnection agreement, provided that the Midcontinent Independent System Operator 
744.18 	has provided a signed generator interconnection agreement that reflects the expected net 
744.19 	power increase.;
744.20 	(9) energy storage systems, as defined in section 216I.02, subdivision 7;
744.21 	(10) transmission lines that directly interconnect large wind energy conversion systems, 
744.22 	solar energy generating systems, or energy storage systems to the transmission system; or
744.23 	(11) relocation of an existing high voltage transmission line to new right-of-way, provided 
744.24 	that any new structures that are installed are not designed for and capable of operation at 
744.25 	higher voltage.
744.26 	(b) For the purpose of this subdivision, "repowering project" means:
744.27 	(1) modifying a large wind energy conversion system or a solar energy generating system 
744.28 	that is a large energy facility to increase its efficiency without increasing its nameplate 
744.29 	capacity;
744.30 	(2) replacing turbines in a large wind energy conversion system without increasing the 
744.31 	nameplate capacity of the system; or
744.32 	(3) increasing the nameplate capacity of a large wind energy conversion system.

745.1 	EFFECTIVE DATE. (a) The amendment to paragraph (a), clause (7), is effective July 
745.2 	1, 2025.
745.3 	(b) The amendments to paragraph (a), clauses (9), (10), and (11), are effective the day 
745.4 	following final enactment, except that the reference to Minnesota Statutes, section 216I.02, 
745.5 	subdivision 7, in paragraph (a), clause (9), is effective July 1, 2025. Prior to July 1, 2025, 
745.6 	the definition of "energy storage system" in Minnesota Statutes, section 216E.01, subdivision 
745.7 	3a, applies.

745.8 	Sec. 6. Minnesota Statutes 2022, section 216B.243, subdivision 9, is amended to read:
745.9 		Subd. 9.Renewable energy standard and carbon-free energy standard facilities.  This 
745.10 	section does not apply to a wind energy conversion system or a solar electric generation 
745.11 	facility that is intended to be used to meet the obligations of section 216B.1691, subdivision 
745.12 	2a or 2g; provided that, after notice and comment, the commission determines that the 
745.13 	facility is a reasonable and prudent approach to meeting a utility's obligations under that 
745.14 	section. When making this determination, the commission must consider:
745.15 	(1) the size of the facility relative to a utility's total need for renewable resources;
745.16 	(2) alternative approaches for supplying the renewable energy to be supplied by the 
745.17 	proposed facility;
745.18 	(3) the facility's ability to promote economic development, as required under section 
745.19 	216B.1691, subdivision 9;
745.20 	(4) the facility's ability to maintain electric system reliability;
745.21 	(5) impacts on ratepayers; and
745.22 	(6) other criteria as the commission may determine are relevant.

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

745.24 	Sec. 7. Minnesota Statutes 2022, section 216B.246, subdivision 3, is amended to read:
745.25 		Subd. 3.Commission procedure. (a) If an electric transmission line has been approved 
745.26 	for construction in a federally registered planning authority transmission plan, the incumbent 
745.27 	electric transmission owner, or owners if there is more than one owner, shall give notice to 
745.28 	the commission, in writing, within 90 60 days of approval, regarding its intent to construct, 
745.29 	own, and maintain the electric transmission line. If an incumbent electric transmission owner 
745.30 	gives notice of intent to build the electric transmission line then, unless exempt from the 
745.31 	requirements of section 216B.243, within 18 12 months from the date of the notice described 
746.1 	in this paragraph or such longer time approved by the commission, the incumbent electric 
746.2 	transmission owner shall file an application for a certificate of need under section 216B.243
746.3 	or certification under section 216B.2425.
746.4 	(b) If the incumbent electric transmission owner indicates that it does not intend to build 
746.5 	the transmission line, such notice shall fully explain the basis for that decision. If the 
746.6 	incumbent electric transmission owner, or owners, gives notice of intent not to build the 
746.7 	electric transmission line, then the commission may determine whether the incumbent 
746.8 	electric transmission owner or other entity will build the electric transmission line, taking 
746.9 	into consideration issues such as cost, efficiency, reliability, and other factors identified in 
746.10 	this chapter.

746.11 	EFFECTIVE DATE. This section is effective the day following final enactment and 
746.12 	applies to any electric transmission line that has been approved for construction in a federally 
746.13 	registered planning authority transmission plan on or after that date.

746.14 	ARTICLE 45
746.15 	CONFORMING CHANGES

746.16 	Section 1. Minnesota Statutes 2023 Supplement, section 10.65, subdivision 2, is amended 
746.17 	to read:
746.18 		Subd. 2.Definitions. As used in this section, the following terms have the meanings 
746.19 	given:
746.20 	(1) "agency" means the Department of Administration; Department of Agriculture; 
746.21 	Department of Children, Youth, and Families; Department of Commerce; Department of 
746.22 	Corrections; Department of Education; Department of Employment and Economic 
746.23 	Development; Department of Health; Office of Higher Education; Housing Finance Agency; 
746.24 	Department of Human Rights; Department of Human Services; Department of Information 
746.25 	Technology Services; Department of Iron Range Resources and Rehabilitation; Department 
746.26 	of Labor and Industry; Minnesota Management and Budget; Bureau of Mediation Services; 
746.27 	Department of Military Affairs; Metropolitan Council; Department of Natural Resources; 
746.28 	Pollution Control Agency; Department of Public Safety; Department of Revenue; Department 
746.29 	of Transportation; Department of Veterans Affairs; Gambling Control Board; Racing 
746.30 	Commission; the Minnesota Lottery; the Animal Health Board; the Public Utilities 
746.31 	Commission; and the Board of Water and Soil Resources;
746.32 	(2) "consultation" means the direct and interactive involvement of the Minnesota Tribal 
746.33 	governments in the development of policy on matters that have Tribal implications. 
747.1 	Consultation is the proactive, affirmative process of identifying and seeking input from 
747.2 	appropriate Tribal governments and considering their interest as a necessary and integral 
747.3 	part of the decision-making process. This definition adds to statutorily mandated notification 
747.4 	procedures. During a consultation, the burden is on the agency to show that it has made a 
747.5 	good faith effort to elicit feedback. Consultation is a formal engagement between agency 
747.6 	officials and the governing body or bodies of an individual Minnesota Tribal government 
747.7 	that the agency or an individual Tribal government may initiate. Formal meetings or 
747.8 	communication between top agency officials and the governing body of a Minnesota Tribal 
747.9 	government is a necessary element of consultation;
747.10 	(3) "matters that have Tribal implications" means rules, legislative proposals, policy 
747.11 	statements, or other actions that have substantial direct effects on one or more Minnesota 
747.12 	Tribal governments, or on the distribution of power and responsibilities between the state 
747.13 	and Minnesota Tribal governments;
747.14 	(4) "Minnesota Tribal governments" means the federally recognized Indian Tribes located 
747.15 	in Minnesota including: Bois Forte Band; Fond Du Lac Band; Grand Portage Band; Leech 
747.16 	Lake Band; Mille Lacs Band; White Earth Band; Red Lake Nation; Lower Sioux Indian 
747.17 	Community; Prairie Island Indian Community; Shakopee Mdewakanton Sioux Community; 
747.18 	and Upper Sioux Community; and
747.19 	(5) "timely and meaningful" means done or occurring at a favorable or useful time that 
747.20 	allows the result of consultation to be included in the agency's decision-making process for 
747.21 	a matter that has Tribal implications.

747.22 	EFFECTIVE DATE. This section is effective August 1, 2024.

747.23 	Sec. 2. Minnesota Statutes 2022, section 116C.83, subdivision 6, is amended to read:
747.24 		Subd. 6.Environmental review and protection. (a) The siting, construction, and 
747.25 	operation of an independent spent-fuel storage installation located on the site of a Minnesota 
747.26 	generation facility for dry cask storage of spent nuclear fuel generated solely by that facility 
747.27 	is subject to all environmental review and protection provisions of this chapter and chapters 
747.28 	115, 115B, 116, 116B, 116D, and 216B, and rules associated with those chapters, except 
747.29 	those statutes and rules that apply specifically to a radioactive waste management facility 
747.30 	as defined in section 116C.71, subdivision 7.
747.31 	(b) An environmental impact statement is required under chapter 116D for a proposal 
747.32 	to construct and operate a new or expanded independent spent-fuel storage installation. The 
747.33 	commissioner of the Department of Commerce shall be Public Utilities Commission is the 
748.1 	responsible governmental unit for the environmental impact statement. Prior to finding the 
748.2 	statement adequate, the commissioner commission must find that the applicant has 
748.3 	demonstrated that the facility is designed to provide a reasonable expectation that the 
748.4 	operation of the facility will not result in groundwater contamination in excess of the 
748.5 	standards established in section 116C.76, subdivision 1, clauses (1) to (3).

748.6 	Sec. 3. Minnesota Statutes 2022, section 216A.037, subdivision 1, is amended to read:
748.7 		Subdivision 1.Ex parte communications prohibitions; rules. (a) The commission 
748.8 	shall adopt rules under chapter 14 prescribing permissible and impermissible ex parte 
748.9 	communications. The ex parte rules may prohibit only ex parte communications, directly 
748.10 	or indirectly, between a commissioner and a participant or party under the commission's 
748.11 	rules of practice and procedure relating to:
748.12 	(1) a material issue during a pending contested case proceeding;
748.13 	(2) a material issue in a rulemaking proceeding after the beginning of commission 
748.14 	deliberations;
748.15 	(3) a material issue in a disputed formal petition; and
748.16 	(4) any other communication impermissible by law.
748.17 	(b) The commission may apply ex parte prohibitions, prospectively and after notice to 
748.18 	affected parties, to other commission proceedings as the commission deems necessary.
748.19 	(c) A contested case is pending from the time the commission refers the matter to the 
748.20 	Office of Administrative Hearings until the commission has issued its final order, and the 
748.21 	time to petition for reconsideration has expired or the commission has issued an order finally 
748.22 	disposing an application for reconsideration, whichever is later.
748.23 	(d) Commission staff and consultants that perform environmental review and other 
748.24 	activities identified in chapters 216G and 216I are not parties, participants, or decision 
748.25 	making personnel, as defined under Minnesota Rules, part 7845.7000.

748.26 	Sec. 4. Minnesota Statutes 2022, section 216A.07, subdivision 3, is amended to read:
748.27 		Subd. 3.Intervention in commission proceeding. (a) The commissioner may intervene 
748.28 	as a party in all proceedings before the commission. When intervening in gas or electric 
748.29 	hearings, the commissioner shall prepare and defend testimony designed to:
748.30 	(1) encourage energy conservation improvements as defined in section 216B.241.;
749.1 	(2) ensure that the greenhouse gas reduction goals are attained on a schedule that keeps 
749.2 	pace with the reduction timetable in section 216H.02, subdivision 1;
749.3 	(3) ensure that the renewable energy standards, solar energy goal, and carbon-free 
749.4 	standards are achieved according to the schedules under section 216B.1691, subdivisions 
749.5 	2a, 2f, and 2g, respectively; and
749.6 	(4) ensure compliance with state environmental policy, as stated in section 116D.02.
749.7 	(b) The attorney general shall act as counsel in the proceedings.

749.8 	Sec. 5. Minnesota Statutes 2023 Supplement, section 216E.06, is amended to read:
749.9 	216E.06 EMERGENCY PERMIT PERMITS.
749.10 		Subdivision 1.Utility emergency action. (a) Any utility whose electric power system 
749.11 	requires the immediate construction of a large electric power energy infrastructure facility 
749.12 	due to a major unforeseen event may apply to the commission for an emergency permit. 
749.13 	The application shall must provide notice in writing of the major unforeseen event and the 
749.14 	need for immediate construction. The permit must be issued in a timely manner, no later 
749.15 	than 195 days after the commission's acceptance of the application and upon a finding by 
749.16 	the commission that (1) a demonstrable emergency exists, (2) the emergency requires 
749.17 	immediate construction, and (3) adherence to the procedures and time schedules specified 
749.18 	in section 216E.03 would jeopardize under this chapter jeopardizes the utility's electric 
749.19 	power system or would jeopardize jeopardizes the utility's ability to meet the electric needs 
749.20 	of its the utility's customers in an orderly and timely manner.
749.21 		Subd. 2.Utility emergency procedures. (b) A public hearing to determine if an 
749.22 	emergency exists must be held within 90 days of the application. The commission, after 
749.23 	notice and hearing, shall must adopt rules specifying the criteria for emergency certification.

749.24 	Sec. 6. Minnesota Statutes 2023 Supplement, section 216E.07, is amended to read:
749.25 	216E.07 ANNUAL HEARING.
749.26 	The commission shall must hold an annual public hearing at a time and place prescribed 
749.27 	by rule in order to afford interested persons an opportunity to be heard regarding any matters 
749.28 	relating to the siting and routing of large electric power energy infrastructure facilities. At 
749.29 	the meeting, the commission shall must advise the public of the permits issued by the 
749.30 	commission in the past year. The commission shall must provide at least ten days but no 
749.31 	more than 45 days' notice of the annual meeting by mailing or serving electronically, as 
750.1 	provided in section 216.17, a notice to those persons who have requested notice and by 
750.2 	publication in the EQB Monitor and the commission's weekly calendar.

750.3 	Sec. 7. Minnesota Statutes 2022, section 216E.08, subdivision 2, is amended to read:
750.4 		Subd. 2.Other Public participation. The commission shall must adopt broad spectrum 
750.5 	citizen participation as a principal of operation. The form of public participation shall must
750.6 	not be limited to public meetings and hearings and advisory task forces and shall must be 
750.7 	consistent with the commission's rules and guidelines as provided for in under section 
750.8 	216E.16 216I.24.

750.9 	Sec. 8. Minnesota Statutes 2023 Supplement, section 216E.10, subdivision 1, is amended 
750.10 	to read:
750.11 		Subdivision 1.Site or route permit prevails over local provisions. To assure the 
750.12 	paramount and controlling effect of the provisions herein over other state agencies, regional, 
750.13 	county, and local governments, and special purpose government districts, the issuance of a 
750.14 	site permit or route permit and subsequent purchase and use of such the site or route locations 
750.15 	for large electric power energy infrastructure facility purposes shall be is the sole site or 
750.16 	route approval required to be obtained by the utility permittee. Such The permit shall 
750.17 	supersede supersedes and preempt preempts all zoning, building, or land use rules, 
750.18 	regulations, or ordinances promulgated by regional, county, local and special purpose 
750.19 	government.

750.20 	Sec. 9. Minnesota Statutes 2023 Supplement, section 216E.10, subdivision 2, is amended 
750.21 	to read:
750.22 		Subd. 2.Other state permits. Notwithstanding anything herein to the contrary, utilities 
750.23 	shall a permittee must obtain state permits that may be required to construct and operate 
750.24 	large electric power energy infrastructure facilities. A state agency in processing a utility's
750.25 	permittee's facility permit application shall be is bound to the decisions of the commission,
750.26 	with respect to (1) the site or route designation, and with respect to (2) other matters for 
750.27 	which authority has been granted to the commission by this chapter.

750.28 	Sec. 10. Minnesota Statutes 2023 Supplement, section 216E.10, subdivision 3, is amended 
750.29 	to read:
750.30 		Subd. 3.State agency participation. (a) A state agencies agency authorized to issue 
750.31 	permits required for construction or operation of to construct or operate a large electric 
751.1 	power facilities shall energy infrastructure facility must participate during routing and siting 
751.2 	at public hearings and all other activities of the commission on specific site or route 
751.3 	designations and design considerations of the commission, and shall must clearly state 
751.4 	whether the site or route being considered for designation or permit and other design matters 
751.5 	under consideration for approval will be in compliance complies with state agency standards, 
751.6 	rules, or policies.
751.7 	(b) An applicant for a permit under this section or under chapter 216G shall must notify 
751.8 	the commissioner of agriculture if the proposed project will impact impacts cultivated 
751.9 	agricultural land, as that term is defined in section 216G.01, subdivision 4. The commissioner 
751.10 	may participate and advise the commission as to whether to grant a permit for the project 
751.11 	and the best options for mitigating adverse impacts to agricultural lands if the permit is 
751.12 	granted. The Department of Agriculture shall be is the lead agency on the development of 
751.13 	any agricultural mitigation plan required for the project.
751.14 	(c) The Minnesota State Historic Preservation Office must participate in the commission's 
751.15 	siting and routing activities described in this section. The commission's consideration and 
751.16 	resolution of Minnesota State Historic Preservation Office's comments satisfies the 
751.17 	requirements of section 138.665, when applicable.

751.18 	Sec. 11. Minnesota Statutes 2022, section 216E.11, is amended to read:
751.19 	216E.11 IMPROVEMENT OF SITES AND ROUTES.
751.20 	Utilities that have acquired A permittee that acquires a site or route in accordance with 
751.21 	this chapter may proceed to construct or improve the site or route for the intended purposes 
751.22 	at any time, subject to section 216E.10, subdivision 2 216I.16, subdivision 2, provided that 
751.23 	if the construction and improvement has not commenced within four years after a permit 
751.24 	for the site or route has been issued, then the utility permittee must certify to the commission 
751.25 	that the site or route continues to meet the conditions upon which the site or route permit 
751.26 	was issued.

751.27 	Sec. 12. Minnesota Statutes 2022, section 216E.13, is amended to read:
751.28 	216E.13 FAILURE TO ACT.
751.29 	If the commission fails to act within the times specified in section 216E.03 under this 
751.30 	chapter, the applicant or any affected person may seek an order of the district court requiring 
751.31 	the commission to designate or refuse to designate a site or route.

752.1 	Sec. 13. Minnesota Statutes 2022, section 216E.14, is amended to read:
752.2 	216E.14 REVOCATION OR SUSPENSION.
752.3 	A site or route permit may be revoked or suspended by the commission after adequate 
752.4 	notice of the alleged grounds for revocation or suspension and a full and fair hearing in 
752.5 	which the affected utility permittee has an opportunity to confront any witness and respond 
752.6 	to any evidence against it the permittee and to present rebuttal or mitigating evidence upon 
752.7 	a finding by the commission of:
752.8 	(1) any false statement knowingly made in the application or in accompanying statements 
752.9 	or studies required of the applicant, if a true statement would have warranted a change in 
752.10 	the commission's findings;
752.11 	(2) failure to comply with material conditions of the site certificate or construction 
752.12 	permit, or failure to maintain health and safety standards; or
752.13 	(3) any material violation of the provisions of this chapter, any rule promulgated pursuant 
752.14 	thereto, or any order of the commission.

752.15 	Sec. 14. Minnesota Statutes 2022, section 216E.15, is amended to read:
752.16 	216E.15 JUDICIAL REVIEW.
752.17 	Any applicant, party or person aggrieved by the issuance of a site or route permit, minor 
752.18 	alteration, amendment, or emergency permit from the commission or a certification of 
752.19 	continuing suitability filed by a utility permittee with the commission or by a final order in 
752.20 	accordance with any rules promulgated by the commission, may appeal to the court of 
752.21 	appeals in accordance with chapter 14. The appeal shall must be filed within 30 days after 
752.22 	the publication in the State Register of date the notice of the issuance of the permit by the 
752.23 	commission or commission's permit issuance is published in the EQB Monitor, certification
752.24 	is filed with the commission, or the filing of any final order is filed by the commission.

752.25 	Sec. 15. Minnesota Statutes 2022, section 216E.16, is amended to read:
752.26 	216E.16 RULES.
752.27 		Subdivision 1.Commission rules. The commission, in order to give effect to the purposes 
752.28 	of this chapter, may adopt rules consistent with this chapter, including promulgation of site 
752.29 	and route designation criteria, the description of the information to be furnished by the 
752.30 	utilities, establishment of minimum guidelines for public participation in the development, 
752.31 	revision, and enforcement of any rule, plan, or program established by the commission, 
752.32 	procedures for the revocation or suspension of a site or route permit, and the procedure and 
753.1 	timeliness for proposing alternative routes and sites. No A rule adopted by the commission 
753.2 	shall must not grant priority to state-owned wildlife management areas over agricultural 
753.3 	lands in the designation of route avoidance areas. The provisions of Chapter 14 shall apply
753.4 	applies to the appeal of rules adopted by the commission to the same extent as it applies to 
753.5 	review of rules adopted by any other agency of state government.
753.6 		Subd. 2.Office of Administrative Hearings rules. The chief administrative law judge 
753.7 	shall must adopt procedural rules for public hearings relating to the site and route permit 
753.8 	process. The rules shall must attempt to maximize citizen participation in these processes 
753.9 	consistent with the time limits for commission decision established in sections 216E.03, 
753.10 	subdivision 10, and 216E.04, subdivision 7 under this chapter.

753.11 	Sec. 16. Minnesota Statutes 2022, section 216E.18, subdivision 2a, is amended to read:
753.12 		Subd. 2a.Route Application fee; appropriation. Every An applicant for a transmission 
753.13 	line site or route permit shall must pay to the commissioner of commerce commission a fee 
753.14 	to cover the necessary and reasonable costs incurred by the commission in acting to act on 
753.15 	the permit application and carrying carry out the requirements of this chapter. The 
753.16 	commission may adopt rules providing for the fee payment of the fee. Section 16A.1283
753.17 	does not apply to the establishment of this the fee under this subdivision. All money received 
753.18 	pursuant to under this subdivision shall must be deposited in a special account. Money in 
753.19 	the account is appropriated to the commissioner of commerce commission to pay expenses 
753.20 	incurred in processing to process applications for site and route permits in accordance with 
753.21 	this chapter and, in the event the expenses are less than the fee paid, to refund the excess
753.22 	fee paid to the applicant.

753.23 	Sec. 17. [216G.025] ROUTING PERMIT; ENVIRONMENTAL REVIEW; CARBON 
753.24 	DIOXIDE PIPELINES.
753.25 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
753.26 	the meanings given.
753.27 	(b) "Carbon dioxide pipeline" means a pipeline located in Minnesota that transports 
753.28 	carbon dioxide in a liquid, gaseous, or supercritical state.
753.29 	(c) "Commission" means the Public Utilities Commission.
753.30 	(d) "Supercritical" means a physical state in which a substance is more dense than a gas 
753.31 	but less dense than a liquid.
754.1 		Subd. 2.Routing permit required. (a) A person is prohibited from constructing or 
754.2 	operating a carbon dioxide pipeline without a route permit issued by the commission under 
754.3 	this chapter.
754.4 	(b) A person seeking to construct or operate a carbon dioxide pipeline is prohibited from 
754.5 	applying to the commission for a conditional exclusion or partial exemption from pipeline 
754.6 	route selection procedures under Minnesota Rules, chapter 7852.
754.7 		Subd. 3.Carbon dioxide pipeline; environmental review. Notwithstanding any other 
754.8 	law or rule, an environmental impact statement must be prepared under Minnesota Rules, 
754.9 	chapter 4410, prior to issuing a route permit under this section for a carbon dioxide pipeline. 
754.10 	The commission is the governmental unit responsible for preparing an environmental impact 
754.11 	statement under this subdivision.

754.12 	Sec. 18. TRANSFER OF DUTIES; ENVIRONMENTAL ANALYSIS OF LARGE 
754.13 	ENERGY INFRASTRUCTURE FACILITIES.
 754.14 	(a) The responsibility for administering the environmental analysis of large energy 
754.15 	infrastructure facilities, as described in this act, is transferred from the Department of 
754.16 	Commerce to the Public Utilities Commission on July 1, 2025.
754.17 	(b) Minnesota Statutes, section 15.039, applies to the transfer of duties required under 
754.18 	this section. Assessments are considered appropriations under Minnesota Statutes, section 
754.19 	15.039, subdivision 6, for the purposes of the transfer under this section.

754.20 	Sec. 19. ADMINISTRATIVE RULEMAKING.
 754.21 	(a) The Public Utilities Commission must adopt rules, using the expedited process under 
754.22 	Minnesota Statutes, section 14.389, that amend Minnesota Rules, chapters 7849 and 7850, 
754.23 	to conform with the changes made in this act.
754.24 	(b) The Environmental Quality Board must adopt rules, using the expedited process 
754.25 	under Minnesota Statutes, section 14.389, that amend Minnesota Rules, chapter 4410, to 
754.26 	conform with the changes made in this act.
754.27 	(c) The Public Utilities Commission must amend Minnesota Rules, chapter 7850, to 
754.28 	authorize applicants for site and route permits to begin submitting preconstruction compliance 
754.29 	filings to commission staff for review immediately following the commission's vote to grant 
754.30 	the applicant a site or route permit, but prior to issuing a written commission order.

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

755.1 	Sec. 20. APPROPRIATION; PUBLIC UTILITIES COMMISSION.
 755.2 	$5,000 in fiscal year 2025 is appropriated from the general fund to the Public Utilities 
755.3 	Commission for the administrative costs of rulemaking in this article. This is a onetime 
755.4 	appropriation and is available until June 30, 2026.

755.5 	Sec. 21. APPROPRIATION; DEPARTMENT OF COMMERCE.
 755.6 	$1,200,000 in fiscal year 2025 is appropriated from the general fund to the commissioner 
755.7 	of commerce to facilitate timely actions in nonenvironmental review, routing and siting 
755.8 	proceedings, and to intervene as a party in Public Utilities Commission permitting 
755.9 	proceedings. The base in fiscal year 2026 and later is $2,400,000.

755.10 	Sec. 22. EFFECTIVE DATE.
 755.11 	Sections 3 and 5 to 16 are effective July 1, 2025.

755.12 	ARTICLE 46
755.13 	DISABILITY SERVICES

755.14 	Section 1. Minnesota Statutes 2023 Supplement, section 13.46, subdivision 2, as amended 
755.15 	by Laws 2024, chapter 80, article 8, section 2, is amended to read:
755.16 		Subd. 2.General. (a) Data on individuals collected, maintained, used, or disseminated 
755.17 	by the welfare system are private data on individuals, and shall not be disclosed except:
755.18 	(1) according to section 13.05;
755.19 	(2) according to court order;
755.20 	(3) according to a statute specifically authorizing access to the private data;
755.21 	(4) to an agent of the welfare system and an investigator acting on behalf of a county, 
755.22 	the state, or the federal government, including a law enforcement person or attorney in the 
755.23 	investigation or prosecution of a criminal, civil, or administrative proceeding relating to the 
755.24 	administration of a program;
755.25 	(5) to personnel of the welfare system who require the data to verify an individual's 
755.26 	identity; determine eligibility, amount of assistance, and the need to provide services to an 
755.27 	individual or family across programs; coordinate services for an individual or family; 
755.28 	evaluate the effectiveness of programs; assess parental contribution amounts; and investigate 
755.29 	suspected fraud;
755.30 	(6) to administer federal funds or programs;
756.1 	(7) between personnel of the welfare system working in the same program;
756.2 	(8) to the Department of Revenue to assess parental contribution amounts for purposes 
756.3 	of section 252.27, subdivision 2a, administer and evaluate tax refund or tax credit programs 
756.4 	and to identify individuals who may benefit from these programs, and prepare the databases 
756.5 	for reports required under section 270C.13 and Laws 2008, chapter 366, article 17, section 
756.6 	6. The following information may be disclosed under this paragraph: an individual's and 
756.7 	their dependent's names, dates of birth, Social Security or individual taxpayer identification 
756.8 	numbers, income, addresses, and other data as required, upon request by the Department 
756.9 	of Revenue. Disclosures by the commissioner of revenue to the commissioner of human 
756.10 	services for the purposes described in this clause are governed by section 270B.14, 
756.11 	subdivision 1. Tax refund or tax credit programs include, but are not limited to, the dependent 
756.12 	care credit under section 290.067, the Minnesota working family credit under section 
756.13 	290.0671, the property tax refund under section 290A.04, and the Minnesota education 
756.14 	credit under section 290.0674;
756.15 	(9) between the Department of Human Services; the Department of Employment and 
756.16 	Economic Development; the Department of Children, Youth, and Families; and, when 
756.17 	applicable, the Department of Education, for the following purposes:
756.18 	(i) to monitor the eligibility of the data subject for unemployment benefits, for any 
756.19 	employment or training program administered, supervised, or certified by that agency;
756.20 	(ii) to administer any rehabilitation program or child care assistance program, whether 
756.21 	alone or in conjunction with the welfare system;
756.22 	(iii) to monitor and evaluate the Minnesota family investment program or the child care 
756.23 	assistance program by exchanging data on recipients and former recipients of Supplemental 
756.24 	Nutrition Assistance Program (SNAP) benefits, cash assistance under chapter 256, 256D, 
756.25 	256J, or 256K, child care assistance under chapter 119B, medical programs under chapter 
756.26 	256B or 256L; and
756.27 	(iv) to analyze public assistance employment services and program utilization, cost, 
756.28 	effectiveness, and outcomes as implemented under the authority established in Title II, 
756.29 	Sections 201-204 of the Ticket to Work and Work Incentives Improvement Act of 1999. 
756.30 	Health records governed by sections 144.291 to 144.298 and "protected health information" 
756.31 	as defined in Code of Federal Regulations, title 45, section 160.103, and governed by Code 
756.32 	of Federal Regulations, title 45, parts 160-164, including health care claims utilization 
756.33 	information, must not be exchanged under this clause;
757.1 	(10) to appropriate parties in connection with an emergency if knowledge of the 
757.2 	information is necessary to protect the health or safety of the individual or other individuals 
757.3 	or persons;
757.4 	(11) data maintained by residential programs as defined in section 245A.02 may be 
757.5 	disclosed to the protection and advocacy system established in this state according to Part 
757.6 	C of Public Law 98-527 to protect the legal and human rights of persons with developmental 
757.7 	disabilities or other related conditions who live in residential facilities for these persons if 
757.8 	the protection and advocacy system receives a complaint by or on behalf of that person and 
757.9 	the person does not have a legal guardian or the state or a designee of the state is the legal 
757.10 	guardian of the person;
757.11 	(12) to the county medical examiner or the county coroner for identifying or locating 
757.12 	relatives or friends of a deceased person;
757.13 	(13) data on a child support obligor who makes payments to the public agency may be 
757.14 	disclosed to the Minnesota Office of Higher Education to the extent necessary to determine 
757.15 	eligibility under section 136A.121, subdivision 2, clause (5);
757.16 	(14) participant Social Security or individual taxpayer identification numbers and names 
757.17 	collected by the telephone assistance program may be disclosed to the Department of 
757.18 	Revenue to conduct an electronic data match with the property tax refund database to 
757.19 	determine eligibility under section 237.70, subdivision 4a;
757.20 	(15) the current address of a Minnesota family investment program participant may be 
757.21 	disclosed to law enforcement officers who provide the name of the participant and notify 
757.22 	the agency that:
757.23 	(i) the participant:
757.24 	(A) is a fugitive felon fleeing to avoid prosecution, or custody or confinement after 
757.25 	conviction, for a crime or attempt to commit a crime that is a felony under the laws of the 
757.26 	jurisdiction from which the individual is fleeing; or
757.27 	(B) is violating a condition of probation or parole imposed under state or federal law;
757.28 	(ii) the location or apprehension of the felon is within the law enforcement officer's 
757.29 	official duties; and
757.30 	(iii) the request is made in writing and in the proper exercise of those duties;
758.1 	(16) the current address of a recipient of general assistance may be disclosed to probation 
758.2 	officers and corrections agents who are supervising the recipient and to law enforcement 
758.3 	officers who are investigating the recipient in connection with a felony level offense;
758.4 	(17) information obtained from a SNAP applicant or recipient households may be 
758.5 	disclosed to local, state, or federal law enforcement officials, upon their written request, for 
758.6 	the purpose of investigating an alleged violation of the Food and Nutrition Act, according 
758.7 	to Code of Federal Regulations, title 7, section 272.1(c);
758.8 	(18) the address, Social Security or individual taxpayer identification number, and, if 
758.9 	available, photograph of any member of a household receiving SNAP benefits shall be made 
758.10 	available, on request, to a local, state, or federal law enforcement officer if the officer 
758.11 	furnishes the agency with the name of the member and notifies the agency that:
758.12 	(i) the member:
758.13 	(A) is fleeing to avoid prosecution, or custody or confinement after conviction, for a 
758.14 	crime or attempt to commit a crime that is a felony in the jurisdiction the member is fleeing;
758.15 	(B) is violating a condition of probation or parole imposed under state or federal law; 
758.16 	or
758.17 	(C) has information that is necessary for the officer to conduct an official duty related 
758.18 	to conduct described in subitem (A) or (B);
758.19 	(ii) locating or apprehending the member is within the officer's official duties; and
758.20 	(iii) the request is made in writing and in the proper exercise of the officer's official duty;
758.21 	(19) the current address of a recipient of Minnesota family investment program, general 
758.22 	assistance, or SNAP benefits may be disclosed to law enforcement officers who, in writing, 
758.23 	provide the name of the recipient and notify the agency that the recipient is a person required 
758.24 	to register under section 243.166, but is not residing at the address at which the recipient is 
758.25 	registered under section 243.166;
758.26 	(20) certain information regarding child support obligors who are in arrears may be 
758.27 	made public according to section 518A.74;
758.28 	(21) data on child support payments made by a child support obligor and data on the 
758.29 	distribution of those payments excluding identifying information on obligees may be 
758.30 	disclosed to all obligees to whom the obligor owes support, and data on the enforcement 
758.31 	actions undertaken by the public authority, the status of those actions, and data on the income 
758.32 	of the obligor or obligee may be disclosed to the other party;
759.1 	(22) data in the work reporting system may be disclosed under section 256.998, 
759.2 	subdivision 7;
759.3 	(23) to the Department of Education for the purpose of matching Department of Education 
759.4 	student data with public assistance data to determine students eligible for free and 
759.5 	reduced-price meals, meal supplements, and free milk according to United States Code, 
759.6 	title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to allocate federal and state 
759.7 	funds that are distributed based on income of the student's family; and to verify receipt of 
759.8 	energy assistance for the telephone assistance plan;
759.9 	(24) the current address and telephone number of program recipients and emergency 
759.10 	contacts may be released to the commissioner of health or a community health board as 
759.11 	defined in section 145A.02, subdivision 5, when the commissioner or community health 
759.12 	board has reason to believe that a program recipient is a disease case, carrier, suspect case, 
759.13 	or at risk of illness, and the data are necessary to locate the person;
759.14 	(25) to other state agencies, statewide systems, and political subdivisions of this state, 
759.15 	including the attorney general, and agencies of other states, interstate information networks, 
759.16 	federal agencies, and other entities as required by federal regulation or law for the 
759.17 	administration of the child support enforcement program;
759.18 	(26) to personnel of public assistance programs as defined in section 256.741, for access 
759.19 	to the child support system database for the purpose of administration, including monitoring 
759.20 	and evaluation of those public assistance programs;
759.21 	(27) to monitor and evaluate the Minnesota family investment program by exchanging 
759.22 	data between the Departments of Human Services; Children, Youth, and Families; and 
759.23 	Education, on recipients and former recipients of SNAP benefits, cash assistance under 
759.24 	chapter 256, 256D, 256J, or 256K, child care assistance under chapter 119B, medical 
759.25 	programs under chapter 256B or 256L, or a medical program formerly codified under chapter 
759.26 	256D;
759.27 	(28) to evaluate child support program performance and to identify and prevent fraud 
759.28 	in the child support program by exchanging data between the Department of Human Services; 
759.29 	Department of Children, Youth, and Families; Department of Revenue under section 270B.14, 
759.30 	subdivision 1, paragraphs (a) and (b), without regard to the limitation of use in paragraph 
759.31 	(c); Department of Health; Department of Employment and Economic Development; and 
759.32 	other state agencies as is reasonably necessary to perform these functions;
760.1 	(29) counties and the Department of Children, Youth, and Families operating child care 
760.2 	assistance programs under chapter 119B may disseminate data on program participants, 
760.3 	applicants, and providers to the commissioner of education;
760.4 	(30) child support data on the child, the parents, and relatives of the child may be 
760.5 	disclosed to agencies administering programs under titles IV-B and IV-E of the Social 
760.6 	Security Act, as authorized by federal law;
760.7 	(31) to a health care provider governed by sections 144.291 to 144.298, to the extent 
760.8 	necessary to coordinate services;
760.9 	(32) to the chief administrative officer of a school to coordinate services for a student 
760.10 	and family; data that may be disclosed under this clause are limited to name, date of birth, 
760.11 	gender, and address;
760.12 	(33) to county correctional agencies to the extent necessary to coordinate services and 
760.13 	diversion programs; data that may be disclosed under this clause are limited to name, client 
760.14 	demographics, program, case status, and county worker information; or
760.15 	(34) between the Department of Human Services and the Metropolitan Council for the 
760.16 	following purposes:
760.17 	(i) to coordinate special transportation service provided under section 473.386 with 
760.18 	services for people with disabilities and elderly individuals funded by or through the 
760.19 	Department of Human Services; and
760.20 	(ii) to provide for reimbursement of special transportation service provided under section 
760.21 	473.386.
760.22 	The data that may be shared under this clause are limited to the individual's first, last, and 
760.23 	middle names; date of birth; residential address; and program eligibility status with expiration 
760.24 	date for the purposes of informing the other party of program eligibility.
760.25 	(b) Information on persons who have been treated for substance use disorder may only 
760.26 	be disclosed according to the requirements of Code of Federal Regulations, title 42, sections 
760.27 	2.1 to 2.67.
760.28 	(c) Data provided to law enforcement agencies under paragraph (a), clause (15), (16), 
760.29 	(17), or (18), or paragraph (b), are investigative data and are confidential or protected 
760.30 	nonpublic while the investigation is active. The data are private after the investigation 
760.31 	becomes inactive under section 13.82, subdivision 7, clause (a) or (b).
761.1 	(d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but are 
761.2 	not subject to the access provisions of subdivision 10, paragraph (b).
761.3 	For the purposes of this subdivision, a request will be deemed to be made in writing if 
761.4 	made through a computer interface system.

761.5 	Sec. 2. Minnesota Statutes 2022, section 245.821, subdivision 1, is amended to read:
761.6 		Subdivision 1.Notice required. Notwithstanding any law to the contrary, no private or 
761.7 	public facility for the treatment, housing, or counseling of more than five persons with 
761.8 	mental illness, physical disability, developmental disability, as defined in section 252.27, 
761.9 	subdivision 1a, substance use disorder, or another form of dependency, nor any correctional 
761.10 	facility for more than five persons, shall be established without 30 days' written notice to 
761.11 	the affected municipality or other political subdivision.

761.12 	Sec. 3. Minnesota Statutes 2022, section 245.825, subdivision 1, is amended to read:
761.13 		Subdivision 1.Rules governing aversive and deprivation procedures. The 
761.14 	commissioner of human services shall by October, 1983, promulgate rules governing the 
761.15 	use of aversive and deprivation procedures in all licensed facilities and licensed services 
761.16 	serving persons with developmental disabilities, as defined in section 252.27, subdivision 
761.17 	1a. No provision of these rules shall encourage or require the use of aversive and deprivation 
761.18 	procedures. The rules shall prohibit: (1) the application of certain aversive and deprivation 
761.19 	procedures in facilities except as authorized and monitored by the commissioner; (2) the 
761.20 	use of aversive and deprivation procedures that restrict the consumers' normal access to 
761.21 	nutritious diet, drinking water, adequate ventilation, necessary medical care, ordinary hygiene 
761.22 	facilities, normal sleeping conditions, and necessary clothing; and (3) the use of faradic 
761.23 	shock without a court order. The rule shall further specify that consumers may not be denied 
761.24 	ordinary access to legal counsel and next of kin. In addition, the rule may specify other 
761.25 	prohibited practices and the specific conditions under which permitted practices are to be 
761.26 	carried out. For any persons receiving faradic shock, a plan to reduce and eliminate the use 
761.27 	of faradic shock shall be in effect upon implementation of the procedure.

761.28 	Sec. 4. Minnesota Statutes 2023 Supplement, section 245A.03, subdivision 7, as amended 
761.29 	by Laws 2024, chapter 80, article 2, section 37, and Laws 2024, chapter 85, section 53, is 
761.30 	amended to read:
761.31 		Subd. 7.Licensing moratorium. (a) The commissioner shall not issue an initial license 
761.32 	for child foster care licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, or adult 
762.1 	foster care licensed under Minnesota Rules, parts 9555.5105 to 9555.6265, under this chapter 
762.2 	for a physical location that will not be the primary residence of the license holder for the 
762.3 	entire period of licensure. If a family adult foster care home license is issued during this 
762.4 	moratorium, and the license holder changes the license holder's primary residence away 
762.5 	from the physical location of the foster care license, the commissioner shall revoke the 
762.6 	license according to section 245A.07. The commissioner shall not issue an initial license 
762.7 	for a community residential setting licensed under chapter 245D. When approving an 
762.8 	exception under this paragraph, the commissioner shall consider the resource need 
762.9 	determination process in paragraph (h), the availability of foster care licensed beds in the 
762.10 	geographic area in which the licensee seeks to operate, the results of a person's choices 
762.11 	during their annual assessment and service plan review, and the recommendation of the 
762.12 	local county board. The determination by the commissioner is final and not subject to appeal. 
762.13 	Exceptions to the moratorium include:
762.14 	(1) a license for a person in a foster care setting that is not the primary residence of the 
762.15 	license holder and where at least 80 percent of the residents are 55 years of age or older;
762.16 	(2) foster care licenses replacing foster care licenses in existence on May 15, 2009, or 
762.17 	community residential setting licenses replacing adult foster care licenses in existence on 
762.18 	December 31, 2013, and determined to be needed by the commissioner under paragraph 
762.19 	(b);
762.20 	(3) new foster care licenses or community residential setting licenses determined to be 
762.21 	needed by the commissioner under paragraph (b) for the closure of a nursing facility, ICF/DD, 
762.22 	or regional treatment center; restructuring of state-operated services that limits the capacity 
762.23 	of state-operated facilities; or allowing movement to the community for people who no 
762.24 	longer require the level of care provided in state-operated facilities as provided under section 
762.25 	256B.092, subdivision 13, or 256B.49, subdivision 24; or
762.26 	(4) new foster care licenses or community residential setting licenses determined to be 
762.27 	needed by the commissioner under paragraph (b) for persons requiring hospital-level care.; 
762.28 	or
762.29 	(5) new community residential setting licenses determined necessary by the commissioner 
762.30 	for people affected by the closure of homes with a capacity of five or six beds currently 
762.31 	licensed as supervised living facilities licensed under Minnesota Rules, chapter 4665, but 
762.32 	not designated as intermediate care facilities. This exception is available until June 30, 2025.
762.33 	(b) The commissioner shall determine the need for newly licensed foster care homes or 
762.34 	community residential settings as defined under this subdivision. As part of the determination, 
763.1 	the commissioner shall consider the availability of foster care capacity in the area in which 
763.2 	the licensee seeks to operate, and the recommendation of the local county board. The 
763.3 	determination by the commissioner must be final. A determination of need is not required 
763.4 	for a change in ownership at the same address.
763.5 	(c) When an adult resident served by the program moves out of a foster home that is not 
763.6 	the primary residence of the license holder according to section 256B.49, subdivision 15, 
763.7 	paragraph (f), or the adult community residential setting, the county shall immediately 
763.8 	inform the Department of Human Services Licensing Division. The department may decrease 
763.9 	the statewide licensed capacity for adult foster care settings.
763.10 	(d) Residential settings that would otherwise be subject to the decreased license capacity 
763.11 	established in paragraph (c) shall be exempt if the license holder's beds are occupied by 
763.12 	residents whose primary diagnosis is mental illness and the license holder is certified under 
763.13 	the requirements in subdivision 6a or section 245D.33.
763.14 	(e) A resource need determination process, managed at the state level, using the available 
763.15 	data required by section 144A.351, and other data and information shall be used to determine 
763.16 	where the reduced capacity determined under section 256B.493 will be implemented. The 
763.17 	commissioner shall consult with the stakeholders described in section 144A.351, and employ 
763.18 	a variety of methods to improve the state's capacity to meet the informed decisions of those 
763.19 	people who want to move out of corporate foster care or community residential settings, 
763.20 	long-term service needs within budgetary limits, including seeking proposals from service 
763.21 	providers or lead agencies to change service type, capacity, or location to improve services, 
763.22 	increase the independence of residents, and better meet needs identified by the long-term 
763.23 	services and supports reports and statewide data and information.
763.24 	(f) At the time of application and reapplication for licensure, the applicant and the license 
763.25 	holder that are subject to the moratorium or an exclusion established in paragraph (a) are 
763.26 	required to inform the commissioner whether the physical location where the foster care 
763.27 	will be provided is or will be the primary residence of the license holder for the entire period 
763.28 	of licensure. If the primary residence of the applicant or license holder changes, the applicant 
763.29 	or license holder must notify the commissioner immediately. The commissioner shall print 
763.30 	on the foster care license certificate whether or not the physical location is the primary 
763.31 	residence of the license holder.
763.32 	(g) License holders of foster care homes identified under paragraph (f) that are not the 
763.33 	primary residence of the license holder and that also provide services in the foster care home 
763.34 	that are covered by a federally approved home and community-based services waiver, as 
764.1 	authorized under chapter 256S or section 256B.092 or 256B.49, must inform the human 
764.2 	services licensing division that the license holder provides or intends to provide these 
764.3 	waiver-funded services.
764.4 	(h) The commissioner may adjust capacity to address needs identified in section 
764.5 	144A.351. Under this authority, the commissioner may approve new licensed settings or 
764.6 	delicense existing settings. Delicensing of settings will be accomplished through a process 
764.7 	identified in section 256B.493.
764.8 	(i) The commissioner must notify a license holder when its corporate foster care or 
764.9 	community residential setting licensed beds are reduced under this section. The notice of 
764.10 	reduction of licensed beds must be in writing and delivered to the license holder by certified 
764.11 	mail or personal service. The notice must state why the licensed beds are reduced and must 
764.12 	inform the license holder of its right to request reconsideration by the commissioner. The 
764.13 	license holder's request for reconsideration must be in writing. If mailed, the request for 
764.14 	reconsideration must be postmarked and sent to the commissioner within 20 calendar days 
764.15 	after the license holder's receipt of the notice of reduction of licensed beds. If a request for 
764.16 	reconsideration is made by personal service, it must be received by the commissioner within 
764.17 	20 calendar days after the license holder's receipt of the notice of reduction of licensed beds.
764.18 	(j) The commissioner shall not issue an initial license for children's residential treatment 
764.19 	services licensed under Minnesota Rules, parts 2960.0580 to 2960.0700, under this chapter 
764.20 	for a program that Centers for Medicare and Medicaid Services would consider an institution 
764.21 	for mental diseases. Facilities that serve only private pay clients are exempt from the 
764.22 	moratorium described in this paragraph. The commissioner has the authority to manage 
764.23 	existing statewide capacity for children's residential treatment services subject to the 
764.24 	moratorium under this paragraph and may issue an initial license for such facilities if the 
764.25 	initial license would not increase the statewide capacity for children's residential treatment 
764.26 	services subject to the moratorium under this paragraph.

764.27 	EFFECTIVE DATE. This section is effective August 1, 2024.

764.28 	Sec. 5. Minnesota Statutes 2022, section 245A.11, subdivision 2a, is amended to read:
764.29 		Subd. 2a.Adult foster care and community residential setting license capacity. (a) 
764.30 	The commissioner shall issue adult foster care and community residential setting licenses 
764.31 	with a maximum licensed capacity of four beds, including nonstaff roomers and boarders, 
764.32 	except that the commissioner may issue a license with a capacity of five beds, including 
764.33 	roomers and boarders, according to paragraphs (b) to (g) (h).
765.1 	(b) The license holder may have a maximum license capacity of five if all persons in 
765.2 	care are age 55 or over and do not have a serious and persistent mental illness or a 
765.3 	developmental disability.
765.4 	(c) The commissioner may grant variances to paragraph (b) to allow a facility with a 
765.5 	licensed capacity of up to five persons to admit an individual under the age of 55 if the 
765.6 	variance complies with section 245A.04, subdivision 9, and approval of the variance is 
765.7 	recommended by the county in which the licensed facility is located.
765.8 	(d) The commissioner may grant variances to paragraph (a) to allow the use of an 
765.9 	additional bed, up to six, for emergency crisis services for a person with serious and persistent 
765.10 	mental illness or a developmental disability, regardless of age, if the variance complies with 
765.11 	section 245A.04, subdivision 9, and approval of the variance is recommended by the county 
765.12 	in which the licensed facility is located.
765.13 	(e) The commissioner may grant a variance to paragraph (b) to allow for the use of an 
765.14 	additional bed, up to six, for respite services, as defined in section 245A.02, for persons 
765.15 	with disabilities, regardless of age, if the variance complies with sections 245A.03, 
765.16 	subdivision 7, and 245A.04, subdivision 9, and approval of the variance is recommended 
765.17 	by the county in which the licensed facility is located. Respite care may be provided under 
765.18 	the following conditions:
765.19 	(1) staffing ratios cannot be reduced below the approved level for the individuals being 
765.20 	served in the home on a permanent basis;
765.21 	(2) no more than two different individuals can be accepted for respite services in any 
765.22 	calendar month and the total respite days may not exceed 120 days per program in any 
765.23 	calendar year;
765.24 	(3) the person receiving respite services must have his or her own bedroom, which could 
765.25 	be used for alternative purposes when not used as a respite bedroom, and cannot be the 
765.26 	room of another person who lives in the facility; and
765.27 	(4) individuals living in the facility must be notified when the variance is approved. The 
765.28 	provider must give 60 days' notice in writing to the residents and their legal representatives 
765.29 	prior to accepting the first respite placement. Notice must be given to residents at least two 
765.30 	days prior to service initiation, or as soon as the license holder is able if they receive notice 
765.31 	of the need for respite less than two days prior to initiation, each time a respite client will 
765.32 	be served, unless the requirement for this notice is waived by the resident or legal guardian.
766.1 	(f) The commissioner may issue an adult foster care or community residential setting 
766.2 	license with a capacity of five adults if the fifth bed does not increase the overall statewide 
766.3 	capacity of licensed adult foster care or community residential setting beds in homes that 
766.4 	are not the primary residence of the license holder, as identified in a plan submitted to the 
766.5 	commissioner by the county, when the capacity is recommended by the county licensing 
766.6 	agency of the county in which the facility is located and if the recommendation verifies 
766.7 	that:
766.8 	(1) the facility meets the physical environment requirements in the adult foster care 
766.9 	licensing rule;
766.10 	(2) the five-bed living arrangement is specified for each resident in the resident's:
766.11 	(i) individualized plan of care;
766.12 	(ii) individual service plan under section 256B.092, subdivision 1b, if required; or
766.13 	(iii) individual resident placement agreement under Minnesota Rules, part 9555.5105, 
766.14 	subpart 19, if required;
766.15 	(3) the license holder obtains written and signed informed consent from each resident 
766.16 	or resident's legal representative documenting the resident's informed choice to remain 
766.17 	living in the home and that the resident's refusal to consent would not have resulted in 
766.18 	service termination; and
766.19 	(4) the facility was licensed for adult foster care before March 1, 2016.
766.20 	(g) The commissioner shall not issue a new adult foster care license under paragraph (f) 
766.21 	after December 31, 2020. The commissioner shall allow a facility with an adult foster care 
766.22 	license issued under paragraph (f) before December 31, 2020, to continue with a capacity 
766.23 	of five adults if the license holder continues to comply with the requirements in paragraph 
766.24 	(f).
766.25 	(h) The commissioner may issue an adult foster care or community residential setting 
766.26 	license with a capacity of five or six adults to facilities meeting the criteria in section 
766.27 	245A.03, subdivision 7, paragraph (a), clause (5), and grant variances to paragraph (b) to 
766.28 	allow the facility to admit an individual under the age of 55 if the variance complies with 
766.29 	section 245A.04, subdivision 9, and approval of the variance is recommended by the county 
766.30 	in which the licensed facility is located.
766.31 	(h) (i) Notwithstanding Minnesota Rules, part 9520.0500, adult foster care and community 
766.32 	residential setting licenses with a capacity of up to six adults as allowed under this subdivision 
767.1 	are not required to be licensed as an adult mental health residential program according to 
767.2 	Minnesota Rules, parts 9520.0500 to 9520.0670.

767.3 	EFFECTIVE DATE. This section is effective August 1, 2024.

767.4 	Sec. 6. Minnesota Statutes 2022, section 246.511, as amended by Laws 2024, chapter 79, 
767.5 	article 2, section 39, is amended to read:
767.6 	246.511 RELATIVE RESPONSIBILITY.
767.7 	Except for substance use disorder services paid for with money provided under chapter 
767.8 	254B, the executive board must not require under section 246.51 a client's relatives to pay 
767.9 	more than the following: (1) for services provided in a community-based service, the 
767.10 	noncovered cost of care as determined under the ability to pay determination; and (2) for 
767.11 	services provided at a regional treatment center operated by state-operated services, 20 
767.12 	percent of the cost of care, unless the relatives reside outside the state. The executive board 
767.13 	must determine the responsibility of parents of children in state facilities to pay according 
767.14 	to section 252.27, subdivision 2, or in rules adopted under chapter 254B if the cost of care 
767.15 	is paid under chapter 254B. The executive board may accept voluntary payments in excess 
767.16 	of 20 percent. The executive board may require full payment of the full per capita cost of 
767.17 	care in state facilities for clients whose parent, parents, spouse, guardian, or conservator do 
767.18 	not reside in Minnesota.

767.19 	Sec. 7. Minnesota Statutes 2022, section 252.27, subdivision 2b, is amended to read:
767.20 		Subd. 2b.Child's responsibility Parental or guardian reimbursement to counties. (a) 
767.21 	Parental or guardian responsibility of for the child for the child's cost of care incurred by 
767.22 	counties shall be up to the maximum amount of the total income and resources attributed 
767.23 	to the child except for the clothing and personal needs allowance as provided in section 
767.24 	256B.35, subdivision 1. Reimbursement by the parents and child or guardians shall be made 
767.25 	to the county making any payments for services.
767.26 	(b) Notwithstanding paragraph (a), the county board may require payment of the full 
767.27 	cost of caring for children whose parents or guardians do not reside in this state.
767.28 	(c) To the extent that a child described in subdivision 1 is eligible for benefits under 
767.29 	chapter 62A, 62C, 62D, 62E, or 64B, the county is not liable for the cost of services.

768.1 	Sec. 8. Minnesota Statutes 2022, section 252.282, subdivision 1, is amended to read:
768.2 		Subdivision 1.Host county responsibility. (a) For purposes of this section, "local system 
768.3 	needs planning" means the determination of need for ICF/DD services by program type, 
768.4 	location, demographics, and size of licensed services for persons with developmental 
768.5 	disabilities or related conditions.
768.6 	(b) (a) This section does not apply to semi-independent living services and 
768.7 	residential-based habilitation services funded as home and community-based services.
768.8 	(c) (b) In collaboration with the commissioner and ICF/DD providers, counties shall 
768.9 	complete a local system needs planning process for each ICF/DD facility. Counties shall 
768.10 	evaluate the preferences and needs of persons with developmental disabilities to determine 
768.11 	resource demands through a systematic assessment and planning process by May 15, 2000, 
768.12 	and by July 1 every two years thereafter beginning in 2001.
768.13 	(d) (c) A local system needs planning process shall be undertaken more frequently when 
768.14 	the needs or preferences of consumers change significantly to require reformation of the 
768.15 	resources available to persons with developmental disabilities.
768.16 	(e) (d) A local system needs plan shall be amended anytime recommendations for 
768.17 	modifications to existing ICF/DD services are made to the host county, including 
768.18 	recommendations for:
768.19 	(1) closure;
768.20 	(2) relocation of services;
768.21 	(3) downsizing; or
768.22 	(4) modification of existing services for which a change in the framework of service 
768.23 	delivery is advocated.

768.24 	Sec. 9. Minnesota Statutes 2022, section 252.282, is amended by adding a subdivision to 
768.25 	read:
768.26 		Subd. 1a.Definitions. (a) For purposes of this section, the terms in this subdivision have 
768.27 	the meanings given.
768.28 	(b) "Local system needs planning" means the determination of need for ICF/DD services 
768.29 	by program type, location, demographics, and size of licensed services for persons with 
768.30 	developmental disabilities or related conditions.
768.31 	(c) "Related condition" has the meaning given in section 256B.02, subdivision 11.

769.1 	Sec. 10. Minnesota Statutes 2023 Supplement, section 256.4764, subdivision 3, is amended 
769.2 	to read:
769.3 		Subd. 3.Allowable uses of grant money. (a) Grantees must use grant money to provide 
769.4 	payments to eligible workers for the following purposes:
769.5 	(1) retention, recruitment, and incentive payments;
769.6 	(2) postsecondary loan and tuition payments;
769.7 	(3) child care costs;
769.8 	(4) transportation-related costs;
769.9 	(5) personal care assistant background study costs; and
769.10 	(6) other costs associated with retaining and recruiting workers, as approved by the 
769.11 	commissioner.
769.12 	(b) Eligible workers may receive cumulative payments up to $1,000 per calendar year 
769.13 	from the workforce incentive grant account and all other state money intended for the same 
769.14 	purpose. Workers are not eligible for payments under this section if they received payments 
769.15 	under section 256.4766.
769.16 	(c) The commissioner must develop a grant cycle distribution plan that allows for 
769.17 	equitable distribution of money among eligible employers. The commissioner's determination 
769.18 	of the grant awards and amounts is final and is not subject to appeal.

769.19 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2023.

769.20 	Sec. 11. Minnesota Statutes 2022, section 256B.02, subdivision 11, is amended to read:
769.21 		Subd. 11.Related condition. "Related condition" means that condition defined in section 
769.22 	252.27, subdivision 1a a condition:
769.23 	(1) that is found to be closely related to a developmental disability, including but not 
769.24 	limited to cerebral palsy, epilepsy, autism, fetal alcohol spectrum disorder, and Prader-Willi 
769.25 	syndrome; and
769.26 	(2) that meets all of the following criteria:
769.27 	(i) is severe and chronic;
769.28 	(ii) results in impairment of general intellectual functioning or adaptive behavior similar 
769.29 	to that of persons with developmental disabilities;
770.1 	(iii) requires treatment or services similar to those required for persons with 
770.2 	developmental disabilities;
770.3 	(iv) is manifested before the person reaches 22 years of age;
770.4 	(v) is likely to continue indefinitely;
770.5 	(vi) results in substantial functional limitations in three or more of the following areas 
770.6 	of major life activity:
770.7 	(A) self-care;
770.8 	(B) understanding and use of language;
770.9 	(C) learning;
770.10 	(D) mobility;
770.11 	(E) self-direction; or
770.12 	(F) capacity for independent living; and
770.13 	(vii) is not attributable to mental illness as defined in section 245.462, subdivision 20, 
770.14 	or an emotional disturbance as defined in section 245.4871, subdivision 15. For purposes 
770.15 	of this item, notwithstanding section 245.462, subdivision 20, or 245.4871, subdivision 15, 
770.16 	"mental illness" does not include autism or other pervasive developmental disorders.

770.17 	Sec. 12. Minnesota Statutes 2022, section 256B.076, is amended by adding a subdivision 
770.18 	to read:
770.19 		Subd. 4.Case management provided under contract. If a county agency provides 
770.20 	case management under contracts with other individuals or agencies and the county agency 
770.21 	utilizes a competitive proposal process for the procurement of contracted case management 
770.22 	services, the competitive proposal process must include evaluation criteria to ensure that 
770.23 	the county maintains a culturally responsive program for case management services adequate 
770.24 	to meet the needs of the population of the county. For the purposes of this section, "culturally 
770.25 	responsive program" means a case management services program that:
770.26 	(1) ensures effective, equitable, comprehensive, and respectful quality care services that 
770.27 	are responsive to individuals within a specific population's values, beliefs, practices, health 
770.28 	literacy, preferred language, and other communication needs; and
770.29 	(2) is designed to address the unique needs of individuals who share a common language 
770.30 	or racial, ethnic, or social background.

771.1 	EFFECTIVE DATE. This section is effective August 1, 2024, and applies to 
771.2 	procurement processes that commence on or after that date.

771.3 	Sec. 13. Minnesota Statutes 2022, section 256B.0911, subdivision 12, is amended to read:
771.4 		Subd. 12.Exception to use of MnCHOICES assessment; contracted assessors. (a)
771.5 	A lead agency that has not implemented MnCHOICES assessments and uses contracted 
771.6 	assessors as of January 1, 2022, is not subject to the requirements of subdivisions 11, clauses 
771.7 	(7) to (9); 13; 14, paragraphs (a) to (c); 16 to 21; 23; 24; and 29 to 31.
771.8 	(b) This subdivision expires upon statewide implementation of MnCHOICES assessments. 
771.9 	The commissioner shall notify the revisor of statutes when statewide implementation has 
771.10 	occurred.

771.11 	Sec. 14. Minnesota Statutes 2023 Supplement, section 256B.0911, subdivision 13, is 
771.12 	amended to read:
771.13 		Subd. 13.MnCHOICES assessor qualifications, training, and certification. (a) The 
771.14 	commissioner shall develop and implement a curriculum and an assessor certification 
771.15 	process.
771.16 	(b) MnCHOICES certified assessors must:
771.17 	(1) either have a bachelor's degree in social work, nursing with a public health nursing 
771.18 	certificate, or other closely related field or be a registered nurse with at least two years of 
771.19 	home and community-based experience; and
771.20 	(2) have received training and certification specific to assessment and consultation for 
771.21 	long-term care services in the state.
771.22 	(c) Certified assessors shall demonstrate best practices in assessment and support 
771.23 	planning, including person-centered planning principles, and have a common set of skills 
771.24 	that ensures consistency and equitable access to services statewide.
771.25 	(d) Certified assessors must be recertified every three years.

771.26 	EFFECTIVE DATE. This section is effective July 1, 2024.

771.27 	Sec. 15. Minnesota Statutes 2022, section 256B.0911, subdivision 17, is amended to read:
771.28 		Subd. 17.MnCHOICES assessments. (a) A person requesting long-term care 
771.29 	consultation services must be visited by a long-term care consultation team within 20 
771.30 	calendar working days after the date on which an assessment was requested or recommended. 
772.1 	Assessments must be conducted according to this subdivision and subdivisions 19 to 21, 
772.2 	23, 24, and 29 to 31.
772.3 	(b) Lead agencies shall use certified assessors to conduct the assessment.
772.4 	(c) For a person with complex health care needs, a public health or registered nurse from 
772.5 	the team must be consulted.
772.6 	(d) The lead agency must use the MnCHOICES assessment provided by the commissioner 
772.7 	to complete a comprehensive, conversation-based, person-centered assessment. The 
772.8 	assessment must include the health, psychological, functional, environmental, and social 
772.9 	needs of the individual necessary to develop a person-centered assessment summary that 
772.10 	meets the individual's needs and preferences.
772.11 	(e) Except as provided in subdivision 24, an assessment must be conducted by a certified 
772.12 	assessor in an in-person conversational interview with the person being assessed.

772.13 	Sec. 16. Minnesota Statutes 2022, section 256B.0911, subdivision 20, is amended to read:
772.14 		Subd. 20.MnCHOICES assessments; duration of validity. (a) An assessment that is 
772.15 	completed as part of an eligibility determination for multiple programs for the alternative 
772.16 	care, elderly waiver, developmental disabilities, community access for disability inclusion, 
772.17 	community alternative care, and brain injury waiver programs under chapter 256S and 
772.18 	sections 256B.0913, 256B.092, and 256B.49 is valid to establish service eligibility for no 
772.19 	more than 60 calendar 365 days after the date of the assessment.
772.20 	(b) The effective eligibility start date for programs in paragraph (a) can never be prior 
772.21 	to the date of assessment. If an assessment was completed more than 60 days before the 
772.22 	effective waiver or alternative care program eligibility start date, assessment and support 
772.23 	plan information must be updated and documented in the department's Medicaid Management 
772.24 	Information System (MMIS). Notwithstanding retroactive medical assistance coverage of 
772.25 	state plan services, the effective date of eligibility for programs included in paragraph (a) 
772.26 	cannot be prior to the completion date of the most recent updated assessment.
772.27 	(c) If an eligibility update is completed within 90 days of the previous assessment and 
772.28 	documented in the department's Medicaid Management Information System (MMIS), the 
772.29 	effective date of eligibility for programs included in paragraph (a) is the date of the previous 
772.30 	in-person assessment when all other eligibility requirements are met.

772.31 	EFFECTIVE DATE. This section is effective July 1, 2025.

773.1 	Sec. 17. Minnesota Statutes 2023 Supplement, section 256B.092, subdivision 1a, is 
773.2 	amended to read:
773.3 		Subd. 1a.Case management services. (a) Each recipient of a home and community-based 
773.4 	waiver shall be provided case management services by qualified vendors as described in 
773.5 	the federally approved waiver application.
773.6 	(b) Case management service activities provided to or arranged for a person include:
773.7 	(1) development of the person-centered support plan under subdivision 1b;
773.8 	(2) informing the individual or the individual's legal guardian or conservator, or parent 
773.9 	if the person is a minor, of service options, including all service options available under the 
773.10 	waiver plan;
773.11 	(3) consulting with relevant medical experts or service providers;
773.12 	(4) assisting the person in the identification of potential providers of chosen services, 
773.13 	including:
773.14 	(i) providers of services provided in a non-disability-specific setting;
773.15 	(ii) employment service providers;
773.16 	(iii) providers of services provided in settings that are not controlled by a provider; and
773.17 	(iv) providers of financial management services;
773.18 	(5) assisting the person to access services and assisting in appeals under section 256.045;
773.19 	(6) coordination of services, if coordination is not provided by another service provider;
773.20 	(7) evaluation and monitoring of the services identified in the support plan, which must 
773.21 	incorporate at least one annual face-to-face visit by the case manager with each person; and
773.22 	(8) reviewing support plans and providing the lead agency with recommendations for 
773.23 	service authorization based upon the individual's needs identified in the support plan.
773.24 	(c) Case management service activities that are provided to the person with a 
773.25 	developmental disability shall be provided directly by county agencies or under contract. 
773.26 	If a county agency contracts for case management services, the county agency must provide 
773.27 	each recipient of home and community-based services who is receiving contracted case 
773.28 	management services with the contact information the recipient may use to file a grievance 
773.29 	with the county agency about the quality of the contracted services the recipient is receiving 
773.30 	from a county-contracted case manager. If a county agency provides case management 
773.31 	under contracts with other individuals or agencies and the county agency utilizes a 
774.1 	competitive proposal process for the procurement of contracted case management services, 
774.2 	the competitive proposal process must include evaluation criteria to ensure that the county 
774.3 	maintains a culturally responsive program for case management services adequate to meet 
774.4 	the needs of the population of the county. For the purposes of this section, "culturally 
774.5 	responsive program" means a case management services program that: (1) ensures effective, 
774.6 	equitable, comprehensive, and respectful quality care services that are responsive to 
774.7 	individuals within a specific population's values, beliefs, practices, health literacy, preferred 
774.8 	language, and other communication needs; and (2) is designed to address the unique needs 
774.9 	of individuals who share a common language or racial, ethnic, or social background.
774.10 	(d) Case management services must be provided by a public or private agency that is 
774.11 	enrolled as a medical assistance provider determined by the commissioner to meet all of 
774.12 	the requirements in the approved federal waiver plans. Case management services must not 
774.13 	be provided to a recipient by a private agency that has a financial interest in the provision 
774.14 	of any other services included in the recipient's support plan. For purposes of this section, 
774.15 	"private agency" means any agency that is not identified as a lead agency under section 
774.16 	256B.0911, subdivision 10.
774.17 	(d) (e) Case managers are responsible for service provisions listed in paragraphs (a) and 
774.18 	(b). Case managers shall collaborate with consumers, families, legal representatives, and 
774.19 	relevant medical experts and service providers in the development and annual review of the 
774.20 	person-centered support plan and habilitation plan.
774.21 	(e) (f) For persons who need a positive support transition plan as required in chapter 
774.22 	245D, the case manager shall participate in the development and ongoing evaluation of the 
774.23 	plan with the expanded support team. At least quarterly, the case manager, in consultation 
774.24 	with the expanded support team, shall evaluate the effectiveness of the plan based on progress 
774.25 	evaluation data submitted by the licensed provider to the case manager. The evaluation must 
774.26 	identify whether the plan has been developed and implemented in a manner to achieve the 
774.27 	following within the required timelines:
774.28 	(1) phasing out the use of prohibited procedures;
774.29 	(2) acquisition of skills needed to eliminate the prohibited procedures within the plan's 
774.30 	timeline; and
774.31 	(3) accomplishment of identified outcomes.
774.32 	If adequate progress is not being made, the case manager shall consult with the person's 
774.33 	expanded support team to identify needed modifications and whether additional professional 
774.34 	support is required to provide consultation.
775.1 	(f) (g) The Department of Human Services shall offer ongoing education in case 
775.2 	management to case managers. Case managers shall receive no less than 20 hours of case 
775.3 	management education and disability-related training each year. The education and training 
775.4 	must include person-centered planning, informed choice, cultural competency, employment 
775.5 	planning, community living planning, self-direction options, and use of technology supports. 
775.6 	By August 1, 2024, all case managers must complete an employment support training course 
775.7 	identified by the commissioner of human services. For case managers hired after August 
775.8 	1, 2024, this training must be completed within the first six months of providing case 
775.9 	management services. For the purposes of this section, "person-centered planning" or 
775.10 	"person-centered" has the meaning given in section 256B.0911, subdivision 10. Case 
775.11 	managers must document completion of training in a system identified by the commissioner.

775.12 	EFFECTIVE DATE. This section is effective August 1, 2024, and applies to 
775.13 	procurement processes that commence on or after that date.

775.14 	Sec. 18. Minnesota Statutes 2022, section 256B.0924, subdivision 3, is amended to read:
775.15 		Subd. 3.Eligibility. Persons are eligible to receive targeted case management services 
775.16 	under this section if the requirements in paragraphs (a) and (b) are met.
775.17 	(a) The person must be assessed and determined by the local county agency to:
775.18 	(1) be age 18 or older;
775.19 	(2) be receiving medical assistance;
775.20 	(3) have significant functional limitations; and
775.21 	(4) be in need of service coordination to attain or maintain living in an integrated 
775.22 	community setting.
775.23 	(b) The person must be a vulnerable adult in need of adult protection as defined in section 
775.24 	626.5572, or is an adult with a developmental disability as defined in section 252A.02, 
775.25 	subdivision 2, or a related condition as defined in section 252.27, subdivision 1a 256B.02, 
775.26 	subdivision 11, and is not receiving home and community-based waiver services, or is an 
775.27 	adult who lacks a permanent residence and who has been without a permanent residence 
775.28 	for at least one year or on at least four occasions in the last three years.

776.1 	Sec. 19. Minnesota Statutes 2023 Supplement, section 256B.0949, subdivision 15, is 
776.2 	amended to read:
776.3 		Subd. 15.EIDBI provider qualifications. (a) A QSP must be employed by an agency 
776.4 	and be:
776.5 	(1) a licensed mental health professional who has at least 2,000 hours of supervised 
776.6 	clinical experience or training in examining or treating people with ASD or a related condition 
776.7 	or equivalent documented coursework at the graduate level by an accredited university in 
776.8 	ASD diagnostics, ASD developmental and behavioral treatment strategies, and typical child 
776.9 	development; or
776.10 	(2) a developmental or behavioral pediatrician who has at least 2,000 hours of supervised 
776.11 	clinical experience or training in examining or treating people with ASD or a related condition 
776.12 	or equivalent documented coursework at the graduate level by an accredited university in 
776.13 	the areas of ASD diagnostics, ASD developmental and behavioral treatment strategies, and 
776.14 	typical child development.
776.15 	(b) A level I treatment provider must be employed by an agency and:
776.16 	(1) have at least 2,000 hours of supervised clinical experience or training in examining 
776.17 	or treating people with ASD or a related condition or equivalent documented coursework 
776.18 	at the graduate level by an accredited university in ASD diagnostics, ASD developmental 
776.19 	and behavioral treatment strategies, and typical child development or an equivalent 
776.20 	combination of documented coursework or hours of experience; and
776.21 	(2) have or be at least one of the following:
776.22 	(i) a master's degree in behavioral health or child development or related fields including, 
776.23 	but not limited to, mental health, special education, social work, psychology, speech 
776.24 	pathology, or occupational therapy from an accredited college or university;
776.25 	(ii) a bachelor's degree in a behavioral health, child development, or related field 
776.26 	including, but not limited to, mental health, special education, social work, psychology, 
776.27 	speech pathology, or occupational therapy, from an accredited college or university, and 
776.28 	advanced certification in a treatment modality recognized by the department;
776.29 	(iii) a board-certified behavior analyst as defined by the Behavior Analyst Certification 
776.30 	Board or a qualified behavior analyst as defined by the Qualified Applied Behavior Analysis 
776.31 	Credentialing Board; or
777.1 	(iv) a board-certified assistant behavior analyst with 4,000 hours of supervised clinical 
777.2 	experience that meets all registration, supervision, and continuing education requirements 
777.3 	of the certification.
777.4 	(c) A level II treatment provider must be employed by an agency and must be:
777.5 	(1) a person who has a bachelor's degree from an accredited college or university in a 
777.6 	behavioral or child development science or related field including, but not limited to, mental 
777.7 	health, special education, social work, psychology, speech pathology, or occupational 
777.8 	therapy; and meets at least one of the following:
777.9 	(i) has at least 1,000 hours of supervised clinical experience or training in examining or 
777.10 	treating people with ASD or a related condition or equivalent documented coursework at 
777.11 	the graduate level by an accredited university in ASD diagnostics, ASD developmental and 
777.12 	behavioral treatment strategies, and typical child development or a combination of 
777.13 	coursework or hours of experience;
777.14 	(ii) has certification as a board-certified assistant behavior analyst from the Behavior 
777.15 	Analyst Certification Board or a qualified autism service practitioner from the Qualified 
777.16 	Applied Behavior Analysis Credentialing Board;
777.17 	(iii) is a registered behavior technician as defined by the Behavior Analyst Certification 
777.18 	Board or an applied behavior analysis technician as defined by the Qualified Applied 
777.19 	Behavior Analysis Credentialing Board; or
777.20 	(iv) is certified in one of the other treatment modalities recognized by the department; 
777.21 	or
777.22 	(2) a person who has:
777.23 	(i) an associate's degree in a behavioral or child development science or related field 
777.24 	including, but not limited to, mental health, special education, social work, psychology, 
777.25 	speech pathology, or occupational therapy from an accredited college or university; and
777.26 	(ii) at least 2,000 hours of supervised clinical experience in delivering treatment to people 
777.27 	with ASD or a related condition. Hours worked as a mental health behavioral aide or level 
777.28 	III treatment provider may be included in the required hours of experience; or
777.29 	(3) a person who has at least 4,000 hours of supervised clinical experience in delivering 
777.30 	treatment to people with ASD or a related condition. Hours worked as a mental health 
777.31 	behavioral aide or level III treatment provider may be included in the required hours of 
777.32 	experience; or
778.1 	(4) a person who is a graduate student in a behavioral science, child development science, 
778.2 	or related field and is receiving clinical supervision by a QSP affiliated with an agency to 
778.3 	meet the clinical training requirements for experience and training with people with ASD 
778.4 	or a related condition; or
778.5 	(5) a person who is at least 18 years of age and who:
778.6 	(i) is fluent in a non-English language or is an individual certified by a Tribal Nation;
778.7 	(ii) completed the level III EIDBI training requirements; and
778.8 	(iii) receives observation and direction from a QSP or level I treatment provider at least 
778.9 	once a week until the person meets 1,000 hours of supervised clinical experience.
778.10 	(d) A level III treatment provider must be employed by an agency, have completed the 
778.11 	level III training requirement, be at least 18 years of age, and have at least one of the 
778.12 	following:
778.13 	(1) a high school diploma or commissioner of education-selected high school equivalency 
778.14 	certification;
778.15 	(2) fluency in a non-English language or Tribal Nation certification;
778.16 	(3) one year of experience as a primary personal care assistant, community health worker, 
778.17 	waiver service provider, or special education assistant to a person with ASD or a related 
778.18 	condition within the previous five years; or
778.19 	(4) completion of all required EIDBI training within six months of employment.

778.20 	Sec. 20. Minnesota Statutes 2023 Supplement, section 256B.49, subdivision 13, is amended 
778.21 	to read:
778.22 		Subd. 13.Case management. (a) Each recipient of a home and community-based waiver 
778.23 	shall be provided case management services by qualified vendors as described in the federally 
778.24 	approved waiver application. The case management service activities provided must include:
778.25 	(1) finalizing the person-centered written support plan within the timelines established 
778.26 	by the commissioner and section 256B.0911, subdivision 29;
778.27 	(2) informing the recipient or the recipient's legal guardian or conservator of service 
778.28 	options, including all service options available under the waiver plans;
778.29 	(3) assisting the recipient in the identification of potential service providers of chosen 
778.30 	services, including:
778.31 	(i) available options for case management service and providers;
779.1 	(ii) providers of services provided in a non-disability-specific setting;
779.2 	(iii) employment service providers;
779.3 	(iv) providers of services provided in settings that are not community residential settings; 
779.4 	and
779.5 	(v) providers of financial management services;
779.6 	(4) assisting the recipient to access services and assisting with appeals under section 
779.7 	256.045; and
779.8 	(5) coordinating, evaluating, and monitoring of the services identified in the service 
779.9 	plan.
779.10 	(b) The case manager may delegate certain aspects of the case management service 
779.11 	activities to another individual provided there is oversight by the case manager. The case 
779.12 	manager may not delegate those aspects which require professional judgment including:
779.13 	(1) finalizing the person-centered support plan;
779.14 	(2) ongoing assessment and monitoring of the person's needs and adequacy of the 
779.15 	approved person-centered support plan; and
779.16 	(3) adjustments to the person-centered support plan.
779.17 	(c) Case management services must be provided by a public or private agency that is 
779.18 	enrolled as a medical assistance provider determined by the commissioner to meet all of 
779.19 	the requirements in the approved federal waiver plans. If a county agency provides case 
779.20 	management under contracts with other individuals or agencies and the county agency 
779.21 	utilizes a competitive proposal process for the procurement of contracted case management 
779.22 	services, the competitive proposal process must include evaluation criteria to ensure that 
779.23 	the county maintains a culturally responsive program for case management services adequate 
779.24 	to meet the needs of the population of the county. For the purposes of this section, "culturally 
779.25 	responsive program" means a case management services program that: (1) ensures effective, 
779.26 	equitable, comprehensive, and respectful quality care services that are responsive to 
779.27 	individuals within a specific population's values, beliefs, practices, health literacy, preferred 
779.28 	language, and other communication needs; and (2) is designed to address the unique needs 
779.29 	of individuals who share a common language or racial, ethnic, or social background.
779.30 	(d) Case management services must not be provided to a recipient by a private agency 
779.31 	that has any financial interest in the provision of any other services included in the recipient's 
780.1 	support plan. For purposes of this section, "private agency" means any agency that is not 
780.2 	identified as a lead agency under section 256B.0911, subdivision 10.
780.3 	(d) (e) For persons who need a positive support transition plan as required in chapter 
780.4 	245D, the case manager shall participate in the development and ongoing evaluation of the 
780.5 	plan with the expanded support team. At least quarterly, the case manager, in consultation 
780.6 	with the expanded support team, shall evaluate the effectiveness of the plan based on progress 
780.7 	evaluation data submitted by the licensed provider to the case manager. The evaluation must 
780.8 	identify whether the plan has been developed and implemented in a manner to achieve the 
780.9 	following within the required timelines:
780.10 	(1) phasing out the use of prohibited procedures;
780.11 	(2) acquisition of skills needed to eliminate the prohibited procedures within the plan's 
780.12 	timeline; and
780.13 	(3) accomplishment of identified outcomes.
780.14 	If adequate progress is not being made, the case manager shall consult with the person's 
780.15 	expanded support team to identify needed modifications and whether additional professional 
780.16 	support is required to provide consultation.
780.17 	(e) (f) The Department of Human Services shall offer ongoing education in case 
780.18 	management to case managers. Case managers shall receive no less than 20 hours of case 
780.19 	management education and disability-related training each year. The education and training 
780.20 	must include person-centered planning, informed choice, cultural competency, employment 
780.21 	planning, community living planning, self-direction options, and use of technology supports. 
780.22 	By August 1, 2024, all case managers must complete an employment support training course 
780.23 	identified by the commissioner of human services. For case managers hired after August 
780.24 	1, 2024, this training must be completed within the first six months of providing case 
780.25 	management services. For the purposes of this section, "person-centered planning" or 
780.26 	"person-centered" has the meaning given in section 256B.0911, subdivision 10. Case 
780.27 	managers shall document completion of training in a system identified by the commissioner.

780.28 	EFFECTIVE DATE. This section is effective August 1, 2024, and applies to 
780.29 	procurement processes that commence on or after that date.

780.30 	Sec. 21. Minnesota Statutes 2022, section 256B.49, subdivision 16, is amended to read:
780.31 		Subd. 16.Services and supports. (a) Services and supports included in the home and 
780.32 	community-based waivers for persons with disabilities must meet the requirements set out 
780.33 	in United States Code, title 42, section 1396n. The services and supports, which are offered 
781.1 	as alternatives to institutional care, must promote consumer choice, community inclusion, 
781.2 	self-sufficiency, and self-determination.
781.3 	(b) The commissioner must simplify and improve access to home and community-based 
781.4 	waivered waiver services, to the extent possible, through the establishment of a common 
781.5 	service menu that is available to eligible recipients regardless of age, disability type, or 
781.6 	waiver program.
781.7 	(c) Consumer-directed community supports must be offered as an option to all persons 
781.8 	eligible for services under subdivision 11.
781.9 	(d) Services and supports must be arranged and provided consistent with individualized 
781.10 	written plans of care for eligible waiver recipients.
781.11 	(e) A transitional supports allowance must be available to all persons under a home and 
781.12 	community-based waiver who are moving from a licensed setting to a community setting. 
781.13 	"Transitional supports allowance" means a onetime payment of up to $3,000, to cover the 
781.14 	costs, not covered by other sources, associated with moving from a licensed setting to a 
781.15 	community setting. Covered costs include:
781.16 	(1) lease or rent deposits;
781.17 	(2) security deposits;
781.18 	(3) utilities setup costs, including telephone;
781.19 	(4) essential furnishings and supplies; and
781.20 	(5) personal supports and transports needed to locate and transition to community settings.
781.21 	(f) (e) The state of Minnesota and county agencies that administer home and 
781.22 	community-based waivered waiver services for persons with disabilities must not be liable 
781.23 	for damages, injuries, or liabilities sustained through the purchase of supports by the 
781.24 	individual, the individual's family, legal representative, or the authorized representative 
781.25 	with funds received through consumer-directed community supports under this section. 
781.26 	Liabilities include but are not limited to workers' compensation liability, the Federal Insurance 
781.27 	Contributions Act (FICA), or the Federal Unemployment Tax Act (FUTA).

781.28 	EFFECTIVE DATE. This section is effective January 1, 2025.

782.1 	Sec. 22. Minnesota Statutes 2022, section 256B.4911, is amended by adding a subdivision 
782.2 	to read:
782.3 		Subd. 7.Budget procedures. When a lead agency authorizes or reauthorizes 
782.4 	consumer-directed community supports services for a home and community-based services 
782.5 	waiver participant, the lead agency must provide to the waiver participant and the waiver 
782.6 	participant's legal representative the following information in an accessible format and in 
782.7 	a manner that meets the participant's needs:
782.8 	(1) an explanation of how the participant's consumer-directed community supports 
782.9 	services budget was calculated, including a detailed explanation of the variables used in the 
782.10 	budget formula;
782.11 	(2) a copy of the formula used to calculate the participant's consumer-directed community 
782.12 	supports services budget; and
782.13 	(3) information about the participant's right to appeal the consumer-directed community 
782.14 	supports services budget in accordance with sections 256.045 and 256.0451.

782.15 	Sec. 23. Minnesota Statutes 2022, section 256B.4911, is amended by adding a subdivision 
782.16 	to read:
782.17 		Subd. 8.Consumer-directed community supports policy. Policies governing the 
782.18 	consumer-directed community supports program must be created solely by the commissioner. 
782.19 	Lead agencies must not create or implement any policies that are in addition to or inconsistent 
782.20 	with policies created by the commissioner or federal or state laws. Any handbooks, 
782.21 	procedures, or other guidance documents maintained by a lead agency do not have the force 
782.22 	or effect of law, and must not be given deference if introduced in a state fair hearing 
782.23 	conducted under sections 256.045 and 256.0451.

782.24 	Sec. 24. Minnesota Statutes 2022, section 256B.4912, subdivision 1, is amended to read:
782.25 		Subdivision 1.Provider qualifications. (a) For the home and community-based waivers 
782.26 	providing services to seniors and individuals with disabilities under chapter 256S and 
782.27 	sections 256B.0913, 256B.092, and 256B.49, the commissioner shall establish:
782.28 	(1) agreements with enrolled waiver service providers to ensure providers meet Minnesota 
782.29 	health care program requirements;
782.30 	(2) regular reviews of provider qualifications, and including requests of proof of 
782.31 	documentation; and
783.1 	(3) processes to gather the necessary information to determine provider qualifications.
783.2 	(b) A provider shall not require or coerce any service recipient to change waiver programs 
783.3 	or move to a different location, consistent with the informed choice and independent living 
783.4 	policies under section 256B.4905, subdivisions 1a, 2a, 3a, 7, and 8.
783.5 	(b) (c) Beginning July 1, 2012, staff that provide direct contact, as defined in section 
783.6 	245C.02, subdivision 11, for services specified in the federally approved waiver plans must 
783.7 	meet the requirements of chapter 245C prior to providing waiver services and as part of 
783.8 	ongoing enrollment. Upon federal approval, this requirement must also apply to 
783.9 	consumer-directed community supports.
783.10 	(c) (d) Beginning January 1, 2014, service owners and managerial officials overseeing 
783.11 	the management or policies of services that provide direct contact as specified in the federally 
783.12 	approved waiver plans must meet the requirements of chapter 245C prior to reenrollment 
783.13 	or revalidation or, for new providers, prior to initial enrollment if they have not already 
783.14 	done so as a part of service licensure requirements.

783.15 	Sec. 25. Minnesota Statutes 2023 Supplement, section 256B.766, is amended to read:
783.16 	256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES.
783.17 	(a) Effective for services provided on or after July 1, 2009, total payments for basic care 
783.18 	services, shall be reduced by three percent, except that for the period July 1, 2009, through 
783.19 	June 30, 2011, total payments shall be reduced by 4.5 percent for the medical assistance 
783.20 	and general assistance medical care programs, prior to third-party liability and spenddown 
783.21 	calculation. Effective July 1, 2010, the commissioner shall classify physical therapy services, 
783.22 	occupational therapy services, and speech-language pathology and related services as basic 
783.23 	care services. The reduction in this paragraph shall apply to physical therapy services, 
783.24 	occupational therapy services, and speech-language pathology and related services provided 
783.25 	on or after July 1, 2010.
783.26 	(b) Payments made to managed care plans and county-based purchasing plans shall be 
783.27 	reduced for services provided on or after October 1, 2009, to reflect the reduction effective 
783.28 	July 1, 2009, and payments made to the plans shall be reduced effective October 1, 2010, 
783.29 	to reflect the reduction effective July 1, 2010.
783.30 	(c) Effective for services provided on or after September 1, 2011, through June 30, 2013, 
783.31 	total payments for outpatient hospital facility fees shall be reduced by five percent from the 
783.32 	rates in effect on August 31, 2011.
784.1 	(d) Effective for services provided on or after September 1, 2011, through June 30, 2013, 
784.2 	total payments for ambulatory surgery centers facility fees, medical supplies and durable 
784.3 	medical equipment not subject to a volume purchase contract, prosthetics and orthotics, 
784.4 	renal dialysis services, laboratory services, public health nursing services, physical therapy 
784.5 	services, occupational therapy services, speech therapy services, eyeglasses not subject to 
784.6 	a volume purchase contract, hearing aids not subject to a volume purchase contract, and 
784.7 	anesthesia services shall be reduced by three percent from the rates in effect on August 31, 
784.8 	2011.
784.9 	(e) Effective for services provided on or after September 1, 2014, payments for 
784.10 	ambulatory surgery centers facility fees, hospice services, renal dialysis services, laboratory 
784.11 	services, public health nursing services, eyeglasses not subject to a volume purchase contract, 
784.12 	and hearing aids not subject to a volume purchase contract shall be increased by three percent 
784.13 	and payments for outpatient hospital facility fees shall be increased by three percent. 
784.14 	Payments made to managed care plans and county-based purchasing plans shall not be 
784.15 	adjusted to reflect payments under this paragraph.
784.16 	(f) Payments for medical supplies and durable medical equipment not subject to a volume 
784.17 	purchase contract, and prosthetics and orthotics, provided on or after July 1, 2014, through 
784.18 	June 30, 2015, shall be decreased by .33 percent. Payments for medical supplies and durable 
784.19 	medical equipment not subject to a volume purchase contract, and prosthetics and orthotics, 
784.20 	provided on or after July 1, 2015, shall be increased by three percent from the rates as 
784.21 	determined under paragraphs (i) and (j).
784.22 	(g) Effective for services provided on or after July 1, 2015, payments for outpatient 
784.23 	hospital facility fees, medical supplies and durable medical equipment not subject to a 
784.24 	volume purchase contract, prosthetics, and orthotics to a hospital meeting the criteria specified 
784.25 	in section 62Q.19, subdivision 1, paragraph (a), clause (4), shall be increased by 90 percent 
784.26 	from the rates in effect on June 30, 2015. Payments made to managed care plans and 
784.27 	county-based purchasing plans shall not be adjusted to reflect payments under this paragraph.
784.28 	(h) This section does not apply to physician and professional services, inpatient hospital 
784.29 	services, family planning services, mental health services, dental services, prescription 
784.30 	drugs, medical transportation, federally qualified health centers, rural health centers, Indian 
784.31 	health services, and Medicare cost-sharing.
784.32 	(i) Effective for services provided on or after July 1, 2015, the following categories of 
784.33 	medical supplies and durable medical equipment shall be individually priced items: 
784.34 	customized and other specialized tracheostomy tubes and supplies, electric patient lifts, and 
785.1 	durable medical equipment repair and service. This paragraph does not apply to medical 
785.2 	supplies and durable medical equipment subject to a volume purchase contract, products 
785.3 	subject to the preferred diabetic testing supply program, and items provided to dually eligible 
785.4 	recipients when Medicare is the primary payer for the item. The commissioner shall not 
785.5 	apply any medical assistance rate reductions to durable medical equipment as a result of 
785.6 	Medicare competitive bidding.
785.7 	(j) Effective for services provided on or after July 1, 2015, medical assistance payment 
785.8 	rates for durable medical equipment, prosthetics, orthotics, or supplies shall be increased 
785.9 	as follows:
785.10 	(1) payment rates for durable medical equipment, prosthetics, orthotics, or supplies that 
785.11 	were subject to the Medicare competitive bid that took effect in January of 2009 shall be 
785.12 	increased by 9.5 percent; and
785.13 	(2) payment rates for durable medical equipment, prosthetics, orthotics, or supplies on 
785.14 	the medical assistance fee schedule, whether or not subject to the Medicare competitive bid 
785.15 	that took effect in January of 2009, shall be increased by 2.94 percent, with this increase 
785.16 	being applied after calculation of any increased payment rate under clause (1).
785.17 	This paragraph does not apply to medical supplies and durable medical equipment subject 
785.18 	to a volume purchase contract, products subject to the preferred diabetic testing supply 
785.19 	program, items provided to dually eligible recipients when Medicare is the primary payer 
785.20 	for the item, and individually priced items identified in paragraph (i). Payments made to 
785.21 	managed care plans and county-based purchasing plans shall not be adjusted to reflect the 
785.22 	rate increases in this paragraph.
785.23 	(k) Effective for nonpressure support ventilators provided on or after January 1, 2016, 
785.24 	the rate shall be the lower of the submitted charge or the Medicare fee schedule rate. Effective 
785.25 	for pressure support ventilators provided on or after January 1, 2016, the rate shall be the 
785.26 	lower of the submitted charge or 47 percent above the Medicare fee schedule rate. For 
785.27 	payments made in accordance with this paragraph, if, and to the extent that, the commissioner 
785.28 	identifies that the state has received federal financial participation for ventilators in excess 
785.29 	of the amount allowed effective January 1, 2018, under United States Code, title 42, section 
785.30 	1396b(i)(27), the state shall repay the excess amount to the Centers for Medicare and 
785.31 	Medicaid Services with state funds and maintain the full payment rate under this paragraph.
785.32 	(l) Payment rates for durable medical equipment, prosthetics, orthotics or supplies, that 
785.33 	are subject to the upper payment limit in accordance with section 1903(i)(27) of the Social 
786.1 	Security Act, shall be paid the Medicare rate. Rate increases provided in this chapter shall 
786.2 	not be applied to the items listed in this paragraph.
786.3 	(m) For dates of service on or after July 1, 2023, through June 30, 2024 2025, enteral 
786.4 	nutrition and supplies must be paid according to this paragraph. If sufficient data exists for 
786.5 	a product or supply, payment must be based upon the 50th percentile of the usual and 
786.6 	customary charges per product code submitted to the commissioner, using only charges 
786.7 	submitted per unit. Increases in rates resulting from the 50th percentile payment method 
786.8 	must not exceed 150 percent of the previous fiscal year's rate per code and product 
786.9 	combination. Data are sufficient if: (1) the commissioner has at least 100 paid claim lines 
786.10 	by at least ten different providers for a given product or supply; or (2) in the absence of the 
786.11 	data in clause (1), the commissioner has at least 20 claim lines by at least five different 
786.12 	providers for a product or supply that does not meet the requirements of clause (1). If 
786.13 	sufficient data are not available to calculate the 50th percentile for enteral products or 
786.14 	supplies, the payment rate must be the payment rate in effect on June 30, 2023.
786.15 	(n) For dates of service on or after July 1, 2024 2025, enteral nutrition and supplies must 
786.16 	be paid according to this paragraph and updated annually each January 1. If sufficient data 
786.17 	exists for a product or supply, payment must be based upon the 50th percentile of the usual 
786.18 	and customary charges per product code submitted to the commissioner for the previous 
786.19 	calendar year, using only charges submitted per unit. Increases in rates resulting from the 
786.20 	50th percentile payment method must not exceed 150 percent of the previous year's rate per 
786.21 	code and product combination. Data are sufficient if: (1) the commissioner has at least 100 
786.22 	paid claim lines by at least ten different providers for a given product or supply; or (2) in 
786.23 	the absence of the data in clause (1), the commissioner has at least 20 claim lines by at least 
786.24 	five different providers for a product or supply that does not meet the requirements of clause 
786.25 	(1). If sufficient data are not available to calculate the 50th percentile for enteral products 
786.26 	or supplies, the payment must be the manufacturer's suggested retail price of that product 
786.27 	or supply minus 20 percent. If the manufacturer's suggested retail price is not available, 
786.28 	payment must be the actual acquisition cost of that product or supply plus 20 percent.

786.29 	Sec. 26. Minnesota Statutes 2022, section 256B.77, subdivision 7a, is amended to read:
786.30 		Subd. 7a.Eligible individuals. (a) Persons are eligible for the demonstration project as 
786.31 	provided in this subdivision.
786.32 	(b) "Eligible individuals" means those persons living in the demonstration site who are 
786.33 	eligible for medical assistance and are disabled based on a disability determination under 
787.1 	section 256B.055, subdivisions 7 and 12, or who are eligible for medical assistance and 
787.2 	have been diagnosed as having:
787.3 	(1) serious and persistent mental illness as defined in section 245.462, subdivision 20;
787.4 	(2) severe emotional disturbance as defined in section 245.4871, subdivision 6; or
787.5 	(3) developmental disability, or being a person with a developmental disability as defined 
787.6 	in section 252A.02, or a related condition as defined in section 252.27, subdivision 1a
787.7 	256B.02, subdivision 11.
787.8 	Other individuals may be included at the option of the county authority based on agreement 
787.9 	with the commissioner.
787.10 	(c) Eligible individuals include individuals in excluded time status, as defined in chapter 
787.11 	256G. Enrollees in excluded time at the time of enrollment shall remain in excluded time 
787.12 	status as long as they live in the demonstration site and shall be eligible for 90 days after 
787.13 	placement outside the demonstration site if they move to excluded time status in a county 
787.14 	within Minnesota other than their county of financial responsibility.
787.15 	(d) A person who is a sexual psychopathic personality as defined in section 253D.02, 
787.16 	subdivision 15, or a sexually dangerous person as defined in section 253D.02, subdivision 
787.17 	16, is excluded from enrollment in the demonstration project.

787.18 	Sec. 27. Minnesota Statutes 2022, section 256S.07, subdivision 1, is amended to read:
787.19 		Subdivision 1.Elderly waiver case management provided by counties and tribes. (a) 
787.20 	For participants not enrolled in a managed care organization, the county of residence or 
787.21 	tribe must provide or arrange to provide elderly waiver case management activities under 
787.22 	section 256S.09, subdivisions 2 and 3.
787.23 	(b) If a county agency provides case management under contracts with other individuals 
787.24 	or agencies and the county agency utilizes a competitive proposal process for the procurement 
787.25 	of contracted case management services, the competitive proposal process must include 
787.26 	evaluation criteria to ensure that the county maintains a culturally responsive program for 
787.27 	case management services adequate to meet the needs of the population of the county. For 
787.28 	the purposes of this section, "culturally responsive program" means a case management 
787.29 	services program that:
787.30 	(1) ensures effective, equitable, comprehensive, and respectful quality care services that 
787.31 	are responsive to individuals within a specific population's values, beliefs, practices, health 
787.32 	literacy, preferred language, and other communication needs; and
788.1 	(2) is designed to address the unique needs of individuals who share a common language 
788.2 	or racial, ethnic, or social background.

788.3 	EFFECTIVE DATE. This section is effective August 1, 2024, and applies to 
788.4 	procurement processes that commence on or after that date.

788.5 	Sec. 28. Minnesota Statutes 2023 Supplement, section 270B.14, subdivision 1, is amended 
788.6 	to read:
788.7 		Subdivision 1.Disclosure to commissioner of human services. (a) On the request of 
788.8 	the commissioner of human services, the commissioner shall disclose return information 
788.9 	regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to the 
788.10 	extent provided in paragraph (b) and for the purposes set forth in paragraph (c).
788.11 	(b) Data that may be disclosed are limited to data relating to the identity, whereabouts, 
788.12 	employment, income, and property of a person owing or alleged to be owing an obligation 
788.13 	of child support.
788.14 	(c) The commissioner of human services may request data only for the purposes of 
788.15 	carrying out the child support enforcement program and to assist in the location of parents 
788.16 	who have, or appear to have, deserted their children. Data received may be used only as set 
788.17 	forth in section 256.978.
788.18 	(d) The commissioner shall provide the records and information necessary to administer 
788.19 	the supplemental housing allowance to the commissioner of human services.
788.20 	(e) At the request of the commissioner of human services, the commissioner of revenue 
788.21 	shall electronically match the Social Security or individual taxpayer identification numbers 
788.22 	and names of participants in the telephone assistance plan operated under sections 237.69
788.23 	to 237.71, with those of property tax refund filers under chapter 290A or renter's credit filers 
788.24 	under section 290.0693, and determine whether each participant's household income is 
788.25 	within the eligibility standards for the telephone assistance plan.
788.26 	(f) The commissioner may provide records and information collected under sections 
788.27 	295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid 
788.28 	Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law 
788.29 	102-234. Upon the written agreement by the United States Department of Health and Human 
788.30 	Services to maintain the confidentiality of the data, the commissioner may provide records 
788.31 	and information collected under sections 295.50 to 295.59 to the Centers for Medicare and 
788.32 	Medicaid Services section of the United States Department of Health and Human Services 
788.33 	for purposes of meeting federal reporting requirements.
789.1 	(g) The commissioner may provide records and information to the commissioner of 
789.2 	human services as necessary to administer the early refund of refundable tax credits.
789.3 	(h) The commissioner may disclose information to the commissioner of human services 
789.4 	as necessary for income verification for eligibility and premium payment under the 
789.5 	MinnesotaCare program, under section 256L.05, subdivision 2, as well as the medical 
789.6 	assistance program under chapter 256B.
789.7 	(i) The commissioner may disclose information to the commissioner of human services 
789.8 	necessary to verify whether applicants or recipients for the Minnesota family investment 
789.9 	program, general assistance, the Supplemental Nutrition Assistance Program (SNAP), 
789.10 	Minnesota supplemental aid program, and child care assistance have claimed refundable 
789.11 	tax credits under chapter 290 and the property tax refund under chapter 290A, and the 
789.12 	amounts of the credits.
789.13 	(j) The commissioner may disclose information to the commissioner of human services 
789.14 	necessary to verify income for purposes of calculating parental contribution amounts under 
789.15 	section 252.27, subdivision 2a.
789.16 	(k) (j) At the request of the commissioner of human services and when authorized in 
789.17 	writing by the taxpayer, the commissioner of revenue may match the business legal name 
789.18 	or individual legal name, and the Minnesota tax identification number, federal Employer 
789.19 	Identification Number, or Social Security number of the applicant under section 245A.04, 
789.20 	subdivision 1; 245I.20; or 245H.03; or license or certification holder. The commissioner of 
789.21 	revenue may share the matching with the commissioner of human services. The matching 
789.22 	may only be used by the commissioner of human services to determine eligibility for provider 
789.23 	grant programs and to facilitate the regulatory oversight of license and certification holders 
789.24 	as it relates to ownership and public funds program integrity. This paragraph applies only 
789.25 	if the commissioner of human services and the commissioner of revenue enter into an 
789.26 	interagency agreement for the purposes of this paragraph.

789.27 	Sec. 29. Minnesota Statutes 2022, section 447.42, subdivision 1, is amended to read:
789.28 		Subdivision 1.Establishment. Notwithstanding any provision of Minnesota Statutes 
789.29 	to the contrary, any city, county, town, or nonprofit corporation approved by the 
789.30 	commissioner of human services, or any combination of them may establish and operate a 
789.31 	community residential facility for persons with developmental disabilities or related 
789.32 	conditions, as defined in section 252.27, subdivision 1a 256B.02, subdivision 11.

790.1 	Sec. 30. Laws 2021, First Special Session chapter 7, article 13, section 68, is amended to 
790.2 	read:
790.3 	Sec. 68. DIRECTION TO THE COMMISSIONER OF HUMAN SERVICES; 
790.4 	DIRECT CARE SERVICES DURING SHORT-TERM ACUTE HOSPITAL VISITS.
 790.5 	The commissioner of human services, in consultation with stakeholders, shall develop 
790.6 	a new covered state plan service under Minnesota Statutes, chapter 256B, or develop 
790.7 	modifications to existing covered state plan services, that permits receipt of direct care 
790.8 	services in an acute care hospital in a manner consistent with the requirements of for people 
790.9 	eligible for home care services as identified in Minnesota Statutes, section 256B.0651, and 
790.10 	community first services and supports as identified in Minnesota Statutes, section 256B.85, 
790.11 	for the purposes of support during acute care hospital stays, as authorized under United 
790.12 	States Code, title 42, section 1396a(h). By August 31, 2022 January 1, 2025, the 
790.13 	commissioner must provide to the chairs and ranking minority members of the house of 
790.14 	representatives and senate committees and divisions with jurisdiction over direct care services 
790.15 	any draft legislation as may be necessary to implement the new or modified covered state 
790.16 	plan service.

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

790.18 	Sec. 31. Laws 2023, chapter 61, article 1, section 60, subdivision 1, is amended to read:
790.19 		Subdivision 1.Definition. "New American" means an individual born abroad and the 
790.20 	individual's children, irrespective of immigration status.

790.21 	Sec. 32. Laws 2023, chapter 61, article 1, section 60, subdivision 2, is amended to read:
790.22 		Subd. 2.Grant program established. The commissioner of human services shall 
790.23 	establish a new American legal, social services, and long-term care workforce grant program 
790.24 	for organizations that serve and support new Americans:
790.25 	(1) in seeking or maintaining legal or citizenship status to legally obtain or retain and 
790.26 	obtaining or retaining legal authorization for employment in the United States in any field 
790.27 	or industry; or
790.28 	(2) to provide specialized services and supports to new Americans to enter the long-term 
790.29 	care workforce.

791.1 	Sec. 33. ASSISTIVE TECHNOLOGY LEAD AGENCY PARTNERSHIPS.
 791.2 	(a) Lead agencies may establish partnerships with enrolled medical assistance providers 
791.3 	of home and community-based services under Minnesota Statutes, section 256B.0913, 
791.4 	256B.092, 256B.093, or 256B.49, or Minnesota Statutes, chapter 256S, to evaluate the 
791.5 	benefits of informed choice in accessing the following existing assistive technology home 
791.6 	and community-based waiver services:
791.7 	(1) assistive technology;
791.8 	(2) specialized equipment and supplies;
791.9 	(3) environmental accessibility adaptations; and
791.10 	(4) 24-hour emergency assistance.
791.11 	(b) Lead agencies may identify eligible individuals who desire to participate in the 
791.12 	partnership authorized by this section using existing home and community-based waiver 
791.13 	criteria under Minnesota Statutes, chapters 256B and 256S.
791.14 	(c) Lead agencies must ensure individuals who choose to participate have informed 
791.15 	choice in accessing the services and must adhere to conflict-free case management 
791.16 	requirements.
791.17 	(d) Lead agencies may identify efficiencies for service authorizations, provide 
791.18 	evidence-based cost data and quality analysis to the commissioner, and collect feedback on 
791.19 	the use of technology systems from home and community-based waiver services recipients, 
791.20 	family caregivers, and any other interested community partners.

791.21 	Sec. 34. DIRECTION TO COMMISSIONER; CONSUMER-DIRECTED 
791.22 	COMMUNITY SUPPORTS.
 791.23 	By December 31, 2024, the commissioner of human services shall seek any necessary 
791.24 	changes to home and community-based services waiver plans regarding consumer-directed 
791.25 	community supports in order to:
791.26 	(1) clarify that allowable goods and services for a consumer-directed community supports 
791.27 	participant do not need to be for the sole benefit of the participant, and that goods and 
791.28 	services may benefit others if there is also a direct benefit to the participant based on the 
791.29 	participant's assessed needs;
791.30 	(2) clarify that goods or services that support the participant's assessed needs for 
791.31 	community integration and inclusion are allowable under the consumer-directed community 
791.32 	supports program;
792.1 	(3) clarify that the rate authorized for services approved under the consumer-directed 
792.2 	community supports personal assistance category may exceed the reasonable range of similar 
792.3 	services in the participant's community if the participant has an assessed need for an enhanced 
792.4 	rate; and
792.5 	(4) clarify that a participant's spouse or a parent of a minor participant, as defined in the 
792.6 	waiver plans, may be paid for consumer-directed community support services at a rate that 
792.7 	exceeds that which would otherwise be paid to a provider of a similar service or that exceeds 
792.8 	what is allowed by the commissioner for the payment of personal care assistance services 
792.9 	if the participant has an assessed need for an enhanced rate.

792.10 	Sec. 35. REIMBURSEMENT FOR COMMUNITY-FIRST SERVICES AND 
792.11 	SUPPORTS WORKERS REPORT.
 792.12 	(a) The commissioner of human services must explore options to permit reimbursement 
792.13 	of community-first services and supports workers under Minnesota Statutes, sections 256B.85 
792.14 	and 256B.851, to provide:
792.15 	(1) up to eight hours of overtime per week per worker beyond the current maximum 
792.16 	number of reimbursable hours per month;
792.17 	(2) asleep overnight and awake overnight staffing in the same manner as direct support 
792.18 	professionals under the brain injury waiver, community alternative care waiver, community 
792.19 	access for disability inclusion waiver, and developmental disabilities waiver; and
792.20 	(3) services in shifts of up to 80 consecutive hours when otherwise compliant with federal 
792.21 	and state labor laws.
792.22 	(b) The commissioner must report recommendations to the chairs and ranking minority 
792.23 	members of the legislative committees with jurisdiction over human services policy and 
792.24 	finance by February 1, 2025.

792.25 	Sec. 36. DISABILITY HOME AND COMMUNITY-BASED SERVICES 
792.26 	REIMBURSEMENT IN ACUTE CARE HOSPITAL STAYS.
 792.27 	(a) The commissioner of human services must seek approval to amend Minnesota's 
792.28 	federally approved disability waiver plans under Minnesota Statutes, sections 256B.092 
792.29 	and 256B.49, to reimburse for delivery of unit-based services under Minnesota Statutes, 
792.30 	section 256B.4914, in acute care hospital settings, as authorized under United States Code, 
792.31 	title 42, section 1396a(h).
792.32 	(b) Reimbursed services must:
793.1 	(1) be identified in an individual's person-centered support plan as required under 
793.2 	Minnesota Statutes, section 256B.0911;
793.3 	(2) be provided to meet the needs of the person that are not met through the provision 
793.4 	of hospital services;
793.5 	(3) not substitute services that the hospital is obligated to provide as required under state 
793.6 	and federal law; and
793.7 	(4) be designed to ensure smooth transitions between acute care settings and home and 
793.8 	community-based settings and to preserve the person's functional abilities.

793.9 	EFFECTIVE DATE. Paragraph (b) is effective January 1, 2025, or upon federal 
793.10 	approval, whichever is later. The commissioner of human services shall notify the revisor 
793.11 	of statutes when federal approval is obtained.

793.12 	Sec. 37. ELECTRONIC VISIT VERIFICATION IMPLEMENTATION GRANT.
 793.13 		Subdivision 1.Establishment. The commissioner of human services must establish a 
793.14 	onetime grant program to assist home care service providers with a portion of the costs of 
793.15 	implementation of electronic visit verification.
793.16 		Subd. 2.Eligible grant recipients. Eligible grant recipients must:
793.17 	(1) be providers of home care services licensed under Minnesota Statutes, chapter 144A;
793.18 	(2) have an average daily census of at least 30 individuals; and
793.19 	(3) have an average daily census of medical assistance and MinnesotaCare enrollees of 
793.20 	20 percent or higher in the 12 months prior to application.
793.21 		Subd. 3.Allowable uses. Allowable uses of grant money include:
793.22 	(1) administrative implementation of an electronic visit verification system, including 
793.23 	but not limited to staff costs for loading patient information into the portal, programming, 
793.24 	and training staff;
793.25 	(2) electronic visit verification operations and maintenance, including but not limited 
793.26 	to staff costs for addressing system flaws related to geographical location and clocking in 
793.27 	and out;
793.28 	(3) purchase and monthly fees for an upgraded electronic visit verification system;
793.29 	(4) purchase of or reimbursement for cell phones and electronic tablets to be used by 
793.30 	staff and the monthly fee for the phone service; and
794.1 	(5) other activities approved by the commissioner.
794.2 		Subd. 4.Application for and distribution of grant money. In order to receive a grant 
794.3 	under this section, providers must apply to the commissioner by November 1, 2024. Grants 
794.4 	must be distributed no later than February 1, 2025. Grant amounts awarded to each approved 
794.5 	applicant must be determined by the total number of approved grantees and each approved 
794.6 	applicant's medical assistance and MinnesotaCare average daily census.
794.7 		Subd. 5.Expiration. This section expires June 30, 2026.

794.8 	Sec. 38. EMERGENCY RELIEF GRANTS FOR RURAL EARLY INTENSIVE 
794.9 	DEVELOPMENTAL AND BEHAVIORAL INTERVENTION PROVIDERS.
 794.10 		Subdivision 1.Establishment and purpose. (a) The commissioner of human services 
794.11 	shall award grants to financially distressed organizations that provide early intensive 
794.12 	developmental and behavioral intervention services to rural communities. For the purposes 
794.13 	of this section, "rural communities" means communities outside the metropolitan counties 
794.14 	listed in Minnesota Statutes, section 473.121, subdivision 4, and outside the cities of Duluth, 
794.15 	Mankato, Moorhead, Rochester, and St. Cloud.
794.16 	(b) The commissioner shall conduct community engagement, provide technical assistance, 
794.17 	and work with the commissioners of management and budget and administration to mitigate 
794.18 	barriers in accessing grant money.
794.19 	(c) The commissioner shall limit expenditures under this section to the amount 
794.20 	appropriated for this purpose.
794.21 		Subd. 2.Eligibility. (a) To be an eligible applicant for a grant under this section, a 
794.22 	provider of early intensive developmental and behavioral intervention services must submit 
794.23 	to the commissioner of human services a grant application in the form and according to the 
794.24 	timelines established by the commissioner.
794.25 	(b) In a grant application, an applicant must demonstrate that:
794.26 	(1) the total net income of the provider of early intensive developmental and behavioral 
794.27 	intervention services is not generating sufficient revenue to cover the provider's operating 
794.28 	expenses;
794.29 	(2) the provider is at risk of closure or ceasing to provide early intensive developmental 
794.30 	and behavioral intervention services; and
795.1 	(3) additional emergency operating revenue is necessary to preserve access to early 
795.2 	intensive developmental and behavioral intervention services within the rural community 
795.3 	the provider serves.
795.4 	(c) In a grant application, the applicant must make a request based on the information 
795.5 	submitted under paragraph (b) for the minimal funding amount sufficient to preserve access 
795.6 	to early intensive developmental and behavioral intervention services within the rural 
795.7 	community the provider serves.
795.8 		Subd. 3.Approving grants. The commissioner must evaluate all grant applications on 
795.9 	a competitive basis and award grants to successful applicants within available appropriations 
795.10 	for this purpose. The commissioner's decisions are final and not subject to appeal.

795.11 	Sec. 39. LEGISLATIVE TASK FORCE ON GUARDIANSHIP.
 795.12 		Subdivision 1.Membership. (a) The Legislative Task Force on Guardianship consists 
795.13 	of the following members:
795.14 	(1) one member of the house of representatives, appointed by the speaker of the house 
795.15 	of representatives;
795.16 	(2) one member of the house of representatives, appointed by the minority leader of the 
795.17 	house of representatives;
795.18 	(3) one member of the senate, appointed by the senate majority leader;
795.19 	(4) one member of the senate, appointed by the senate minority leader;
795.20 	(5) one judge who has experience working on guardianship cases, appointed by the chief 
795.21 	justice of the supreme court;
795.22 	(6) two individuals presently or formerly under guardianship or emergency guardianship, 
795.23 	appointed by the Minnesota Council on Disability;
795.24 	(7) one private, professional guardian, appointed by the Minnesota Council on Disability;
795.25 	(8) one private, nonprofessional guardian, appointed by the Minnesota Council on 
795.26 	Disability;
795.27 	(9) one representative of the Department of Human Services with knowledge of public 
795.28 	guardianship issues, appointed by the commissioner of human services;
795.29 	(10) one member appointed by the Minnesota Council on Disability;
795.30 	(11) two members of two different disability advocacy organizations, appointed by the 
795.31 	Minnesota Council on Disability;
796.1 	(12) one member of a professional or advocacy group representing the interests of the 
796.2 	guardian who has experience working in the judicial system on guardianship cases, appointed 
796.3 	by the Minnesota Council on Disability;
796.4 	(13) one member of a professional or advocacy group representing the interests of persons 
796.5 	subject to guardianship who has experience working in the judicial system on guardianship 
796.6 	cases, appointed by the Minnesota Council on Disability;
796.7 	(14) two members of two different advocacy groups representing the interests of older 
796.8 	Minnesotans who are or may find themselves subject to guardianship, appointed by the 
796.9 	Minnesota Council on Disability;
796.10 	(15) one employee acting as the Disability Systems Planner in the Center for Health 
796.11 	Equity at the Minnesota Department of Health, appointed by the commissioner of health;
796.12 	(16) one member appointed by the Minnesota Indian Affairs Council;
796.13 	(17) one member from the Commission of the Deaf, Deafblind, and Hard-of-Hearing, 
796.14 	appointed by the executive director of the commission;
796.15 	(18) one member of the Council on Developmental Disabilities, appointed by the 
796.16 	executive director of the council;
796.17 	(19) one employee from the Office of Ombudsman for Mental Health and Developmental 
796.18 	Disabilities, appointed by the ombudsman;
796.19 	(20) one employee from the Office of Ombudsman for Long Term Care, appointed by 
796.20 	the ombudsman;
796.21 	(21) one member appointed by the Minnesota Association of County Social Services 
796.22 	Administrators (MACSSA);
796.23 	(22) one employee from the Olmstead Implementation Office, appointed by the director 
796.24 	of the office; and
796.25 	(23) one member representing an organization dedicated to supported decision-making 
796.26 	alternatives to guardianship, appointed by the Minnesota Council on Disability.
796.27 	(b) Appointees to the task force must be named by each appointing authority by June 
796.28 	30, 2025. Appointments made by an agency or commissioner may also be made by a 
796.29 	designee.
796.30 	(c) The member from the Minnesota Council on Disability serves as chair of the task 
796.31 	force. The chair must designate a member to serve as secretary.
797.1 		Subd. 2.Meetings; administrative support. The first meeting of the task force must 
797.2 	be convened by the chair no later than September 1, 2025, if an appropriation is made by 
797.3 	that date for the task force. The task force must meet at least quarterly. Meetings are subject 
797.4 	to Minnesota Statutes, chapter 13D. The task force may meet by telephone or interactive 
797.5 	technology consistent with Minnesota Statutes, section 13D.015. The Minnesota Council 
797.6 	on Disability shall provide meeting space and administrative and research support to the 
797.7 	task force.
797.8 		Subd. 3.Duties. (a) The task force must make recommendations to address concerns 
797.9 	and gaps related to guardianships and less restrictive alternatives to guardianships in 
797.10 	Minnesota, including but not limited to:
797.11 	(1) developing efforts to sustain and increase the number of qualified guardians;
797.12 	(2) increasing compensation for in forma pauperis (IFP) guardians by studying current 
797.13 	funding streams to develop approaches to ensure that the funding streams are consistent 
797.14 	across the state and sufficient to serve the needs of persons subject to guardianship;
797.15 	(3) securing ongoing funding for guardianships and less restrictive alternatives;
797.16 	(4) establishing guardian certification or licensure;
797.17 	(5) identifying standards of practice for guardians and options for providing education 
797.18 	to guardians on standards and less restrictive alternatives;
797.19 	(6) securing ongoing funding for the guardian and conservator administrative complaint 
797.20 	process;
797.21 	(7) identifying and understanding alternatives to guardianship whenever possible to meet 
797.22 	the needs of patients and the challenges of providers in the delivery of health care, behavioral 
797.23 	health care, and residential and home-based care services;
797.24 	(8) expanding supported decision-making alternatives to guardianships and 
797.25 	conservatorships;
797.26 	(9) reducing the removal of civil rights when appointing a guardian, including by ensuring 
797.27 	guardianship is only used as a last resort; and
797.28 	(10) identifying ways to preserve and to maximize the civil rights of the person, including 
797.29 	due process considerations.
797.30 	(b) The task force must seek input from the public, the judiciary, people subject to 
797.31 	guardianship, guardians, advocacy groups, and attorneys. The task force must hold hearings 
797.32 	to gather information to fulfill the purpose of the task force.
798.1 		Subd. 4.Compensation; expenses. Members of the task force may receive compensation 
798.2 	and expense reimbursement as provided in Minnesota Statutes, section 15.059, subdivision 
798.3 	3.
798.4 		Subd. 5.Report; expiration. The task force shall submit a report to the chairs and 
798.5 	ranking minority members of the legislative committees with jurisdiction over guardianship 
798.6 	issues no later than January 15, 2027. The report must describe any concerns about the 
798.7 	current guardianship system identified by the task force and recommend policy options to 
798.8 	address those concerns and to promote less restrictive alternatives to guardianship. The 
798.9 	report must include draft legislation to implement recommended policy.
798.10 		Subd. 6.Expiration. The task force expires upon submission of its report, or January 
798.11 	16, 2027, whichever is earlier.

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

798.13 	Sec. 40. TRANSITIONAL SUPPORTS ALLOWANCE INCREASE.
 798.14 	Upon federal approval, the commissioner of human services must increase to $5,000 
798.15 	the transitional supports allowance under Minnesota's federally approved home and 
798.16 	community-based service waiver plans authorized under Minnesota Statutes, sections 
798.17 	256B.092 and 256B.49.

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

798.21 	Sec. 41. TRIBAL VULNERABLE ADULT AND DEVELOPMENTAL DISABILITY 
798.22 	TARGETED CASE MANAGEMENT MEDICAL ASSISTANCE BENEFIT.
 798.23 	(a) The commissioner of human services must engage with Minnesota's 
798.24 	federally-recognized Tribal Nations and urban American Indian providers and leaders to 
798.25 	design and recommend a Tribal-specific vulnerable adult and developmental disability 
798.26 	medical assistance targeted case management benefit to meet community needs and reduce 
798.27 	disparities experienced by Tribal members and urban American Indian populations. The 
798.28 	commissioner must honor and uphold Tribal sovereignty as part of this engagement, ensuring 
798.29 	Tribal Nations are equitably and authentically included in planning and policy discussions.
798.30 	(b) By January 1, 2025, the commissioner must report recommendations to the chairs 
798.31 	and ranking minority members of the legislative committees with jurisdiction over health 
798.32 	and human services finance and policy. Recommendations must include a description of 
799.1 	engagement with Tribal Nations, Tribal perspectives shared throughout the engagement 
799.2 	process, service design, and reimbursement methodology.

799.3 	EFFECTIVE DATE. This section is effective July 1, 2024.

799.4 	Sec. 42. ELECTRONIC VISIT VERIFICATION SIMPLIFICATION FOR LIVE-IN 
799.5 	CAREGIVERS.
 799.6 	The commissioner must explore options to simplify documentation requirements for 
799.7 	direct support professionals who live in the same house as the person they support and are 
799.8 	reimbursed for services subject to electronic visit verification requirements under Minnesota 
799.9 	Statutes, section 256B.073. The commissioner may evaluate information technology barriers 
799.10 	and opportunities, attestation options, worker identification options, and program integrity 
799.11 	considerations. The commissioner must report recommendations to the chairs and ranking 
799.12 	minority members of the legislative committees with jurisdiction over health and human 
799.13 	services policy and finance by February 1, 2025, with short- and long-term policy changes 
799.14 	that will simplify documentation requirements and minimize burdens on providers and 
799.15 	recipients.

799.16 	EFFECTIVE DATE. This section is effective July 1, 2024.

799.17 	Sec. 43. LICENSE TRANSITION SUPPORT FOR SMALL DISABILITY WAIVER 
799.18 	PROVIDERS.
 799.19 		Subdivision 1.Onetime transition support. The commissioner of human services must 
799.20 	distribute onetime payments to medical assistance disability waiver customized living and 
799.21 	community residential providers to assist with the transition from small, customized living 
799.22 	settings to licensed community residential services under Minnesota Statutes, chapter 245D 
799.23 	and section 256B.49.
799.24 		Subd. 2.Definitions. For purposes of this section, "eligible provider" means an enrolled 
799.25 	provider that received approval from the commissioner of human services for a corporate 
799.26 	foster care moratorium exception under Minnesota Statutes, section 245A.03, subdivision 
799.27 	7, related to transitioning between customized living services and community residential 
799.28 	services. This approval must have been received between July 1, 2022, and December 31, 
799.29 	2023.
799.30 		Subd. 3.Allowable uses of payments. Allowable uses of payments include costs incurred 
799.31 	by a community residential service provider or customed living provider directly related to 
799.32 	the provider's transition from providing medical assistance customized living or 24-hour 
800.1 	customized living and technical assistance to adapt business models and meet policy and 
800.2 	regulatory guidance.
800.3 		Subd. 4.Payment request and requirements. License holders of eligible settings must 
800.4 	apply for payments using an application process determined by the commissioner of human 
800.5 	services. Payments are onetime amounts of $15,000 per eligible setting. To be considered 
800.6 	for a payment, eligible settings must submit a payment application no later than March 1, 
800.7 	2025. The commissioner may approve payment applications on a rolling basis. Payments 
800.8 	must be distributed without compliance to time-consuming procedures and formalities 
800.9 	prescribed in law, including the following statutes and related policies: Minnesota Statutes, 
800.10 	sections 16A.15, subdivision 3; 16B.97; and 16B.98, subdivisions 5, 7, and 8, the express 
800.11 	audit clause requirement. The commissioner's determination of the payment amount 
800.12 	determined under this section is final and is not subject to appeal. This subdivision does not 
800.13 	apply to recoupment by the commissioner under subdivision 7.
800.14 		Subd. 5.Attestation. As a condition of obtaining payments under this section, an eligible 
800.15 	provider must attest, on the payment application form, to the following:
800.16 	(1) the provider's intent to provide services through December 31, 2027; and
800.17 	(2) the provider's intent to use the payment for allowable uses under subdivision 3.
800.18 		Subd. 6.Agreement. As a condition of obtaining a payment under this section, an eligible 
800.19 	provider must agree to the following on the payment application form:
800.20 	(1) to cooperate with the commissioner of human services to deliver services according 
800.21 	to the requirements in this section;
800.22 	(2) to maintain documentation sufficient to demonstrate the costs required to transition 
800.23 	to a new setting as described under subdivision 3; and
800.24 	(3) to acknowledge that payments may be subject to a recoupment under this section if 
800.25 	a state audit performed under this section determines that the provider used payments for 
800.26 	purposes not authorized under this section.
800.27 		Subd. 7.Recoupment. (a) The commissioner of human services may perform an audit 
800.28 	under this section up to six years after the payments are distributed to ensure the funds are 
800.29 	utilized solely for the purposes stated in subdivision 3.
800.30 	(b) If the commissioner determines that a provider used the allocated payment for 
800.31 	purposes not authorized under this section, the commissioner must treat any amount used 
800.32 	for a purpose not authorized under this section as an overpayment. The commissioner must 
800.33 	recover any overpayment.

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

801.2 	Sec. 44. DISABILITY SERVICES PERSON-CENTERED ENGAGEMENT AND 
801.3 	NAVIGATION STUDY.
 801.4 	(a) The commissioner of human services must issue a request for proposals for the design 
801.5 	and administration of a study of a person's experience in accessing and navigating medical 
801.6 	assistance state plan and home and community-based waiver services and state funded 
801.7 	disability services to improve people's experiences in accessing and navigating the system.
801.8 	(b) The person-centered disability services engagement and navigation study must engage 
801.9 	with people and families who use services, lead agencies, and providers to assess:
801.10 	(1) access to the full range of disability services programs in metropolitan, suburban, 
801.11 	and rural counties with a focus on non-English-speaking communities and by various 
801.12 	populations, including but not limited to Black people, Indigenous people, people of color, 
801.13 	and communities with vision, hearing, physical, neurocognitive, or intellectual developmental 
801.14 	disabilities;
801.15 	(2) how people and families experience and navigate the system, including their customer 
801.16 	service experiences and barriers to person-centered and culturally responsive navigation 
801.17 	support and resources; and
801.18 	(3) opportunities to improve state, lead agency, and provider capacity to improve the 
801.19 	experiences of people accessing and navigating the system.
801.20 	(c) To be eligible to respond to the request for proposals, an entity must demonstrate 
801.21 	that it has engaged successfully with people who use disability services and their families.
801.22 	(d) The commissioner must report the results of the study and provide specific 
801.23 	recommendations and administrative strategy or policy modifications to improve system 
801.24 	accessibility, efficiency, and person-centered systemic design to the chairs and ranking 
801.25 	minority members of the legislative committees with jurisdiction over health and human 
801.26 	services finance and policy by January 15, 2026.

801.27 	Sec. 45. PERSONAL CARE ASSISTANCE COMPENSATION FOR SERVICES 
801.28 	PROVIDED BY A PARENT OR SPOUSE.
 801.29 	(a) Notwithstanding Minnesota Statutes, section 256B.0659, subdivision 3, paragraph 
801.30 	(a), clause (1); subdivision 11, paragraph (c); and subdivision 19, paragraph (b), clause (3), 
801.31 	beginning October 1, 2024, a parent, stepparent, or legal guardian of a minor who is a 
802.1 	personal care assistance recipient or the spouse of a personal care assistance recipient may 
802.2 	provide and be paid for providing personal care assistance services under medical assistance.
802.3 	(b) This section expires upon full implementation of community first services and 
802.4 	supports under Minnesota Statutes, section 256B.85. The commissioner of human services 
802.5 	shall notify the revisor of statutes when this section expires.

802.6 	EFFECTIVE DATE. This section is effective for services rendered on or after October 
802.7 	1, 2024.

802.8 	Sec. 46. OWN HOME SERVICES PROVIDER CAPACITY-BUILDING GRANTS.
 802.9 		Subdivision 1.Establishment. The commissioner of human services shall establish a 
802.10 	onetime grant program to incentivize providers to support individuals to move out of 
802.11 	congregate living settings and into an individual's own home as described in Minnesota 
802.12 	Statutes, section 256B.492, subdivision 3.
802.13 		Subd. 2.Eligible grant recipients. Eligible grant recipients are providers of home and 
802.14 	community-based services under Minnesota Statutes, chapter 245D.
802.15 		Subd. 3.Grant application. In order to receive a grant under this section, providers 
802.16 	must apply to the commissioner on the forms and according to the timelines established by 
802.17 	the commissioner.
802.18 		Subd. 4.Allowable uses of grant money. Allowable uses of grant money include:
802.19 	(1) enhancing resources and staffing to support people and families in understanding 
802.20 	housing options;
802.21 	(2) housing expenses related to moving an individual into their own home, if the person 
802.22 	is not eligible for other available housing services;
802.23 	(3) moving expenses that are not covered by other housing services for which the 
802.24 	individual is eligible;
802.25 	(4) implementing and testing innovative approaches to better support people with 
802.26 	disabilities and their families in living in their own homes;
802.27 	(5) financial incentives for providers that have successfully moved an individual out of 
802.28 	congregate living and into their own home; and
802.29 	(6) other activities approved by the commissioner.
802.30 		Subd. 5.Expiration. This section expires June 30, 2026.

803.1 	Sec. 47. DIRECTION TO COMMISSIONER; PEDIATRIC HOSPITAL-TO-HOME 
803.2 	TRANSITION PILOT PROGRAM.
 803.3 	(a) The commissioner of human services must award a single competitive grant to a 
803.4 	home care nursing provider to develop and implement, in coordination with the commissioner 
803.5 	of health, Fairview Masonic Children's Hospital, Gillette Children's Specialty Healthcare, 
803.6 	and Children's Minnesota of St. Paul and Minneapolis, a pilot program to expedite and 
803.7 	facilitate pediatric hospital-to-home discharges for patients receiving services in this state 
803.8 	under medical assistance, including under the community alternative care waiver, community 
803.9 	access for disability inclusion waiver, and developmental disabilities waiver.
803.10 	(b) Grant money awarded under this section must be used only to support the 
803.11 	administrative, training, and auxiliary services necessary to reduce:
803.12 	(1) delayed discharge days due to unavailability of home care nursing staffing to 
803.13 	accommodate complex pediatric patients;
803.14 	(2) avoidable rehospitalization days for pediatric patients;
803.15 	(3) unnecessary emergency department utilization by pediatric patients following 
803.16 	discharge;
803.17 	(4) long-term nursing needs for pediatric patients; and
803.18 	(5) the number of school days missed by pediatric patients.
803.19 	(c) Grant money must not be used to supplant payment rates for services covered under 
803.20 	Minnesota Statutes, chapter 256B.
803.21 	(d) No later than December 15, 2026, the commissioner must prepare a report 
803.22 	summarizing the impact of the pilot program that includes but is not limited to: (1) the 
803.23 	number of delayed discharge days eliminated; (2) the number of rehospitalization days 
803.24 	eliminated; (3) the number of unnecessary emergency department admissions eliminated; 
803.25 	(4) the number of missed school days eliminated; and (5) an estimate of the return on 
803.26 	investment of the pilot program.
803.27 	(e) The commissioner must submit the report under paragraph (d) to the chairs and 
803.28 	ranking minority members of the legislative committees with jurisdiction over health and 
803.29 	human services finance and policy.

803.30 	Sec. 48. REPEALER.
 803.31 	(a) Minnesota Statutes 2022, section 252.27, subdivisions 1a, 2, 3, 4a, 5, and 6, are 
803.32 	repealed.
804.1 	(b) Minnesota Statutes 2022, section 256B.0916, subdivision 10, is repealed.
804.2 	(c) Minnesota Statutes 2023 Supplement, section 252.27, subdivision 2a, is repealed.
804.3 	(d) Laws 2024, chapter 79, article 4, section 1, subdivision 3, is repealed.

804.4 	EFFECTIVE DATE. Paragraph (b) is effective January 1, 2025.

804.5 	ARTICLE 47
804.6 	AGING SERVICES

804.7 	Section 1. [144G.195] FACILITY RELOCATION.
804.8 		Subdivision 1.New license not required. (a) Beginning March 15, 2025, an assisted 
804.9 	living facility with a licensed resident capacity of five residents or fewer may operate under 
804.10 	the licensee's current license if the facility is relocated with the approval of the commissioner 
804.11 	of health during the period the current license is valid.
804.12 	(b) A licensee is not required to apply for a new license solely because the licensee 
804.13 	receives approval to relocate a facility. The licensee's license for the relocated facility 
804.14 	remains valid until the expiration date specified on the existing license. The commissioner 
804.15 	of health must apply the licensing and survey cycle previously established for the facility's 
804.16 	prior location to the facility's new location.
804.17 	(c) A licensee must notify the commissioner of health, on a form developed by the 
804.18 	commissioner, of the licensee's intent to relocate the licensee's facility and submit a 
804.19 	nonrefundable relocation fee of $3,905. The commissioner must deposit all relocation fees 
804.20 	in the state treasury to be credited to the state government special revenue fund.
804.21 	(d) The licensee must obtain plan review approval for the building to which the licensee 
804.22 	intends to relocate the facility and a certificate of occupancy from the commissioner of labor 
804.23 	and industry or the commissioner of labor and industry's delegated authority for the building. 
804.24 	Upon issuance of a certificate of occupancy, the commissioner of health must review and 
804.25 	inspect the building to which the licensee intends to relocate the facility and approve or 
804.26 	deny the license relocation within 30 calendar days.
804.27 	(e) A licensee may only relocate a facility within the geographic boundaries of the 
804.28 	municipality in which the facility is currently located or within the geographic boundaries 
804.29 	of a contiguous municipality.
804.30 	(f) A licensee may only relocate one time in any three-year period, except that the 
804.31 	commissioner may approve an additional relocation within a three-year period upon a 
805.1 	licensee's demonstration of an extenuating circumstance, including but not limited to the 
805.2 	criteria outlined in section 256B.49, subdivision 28a, paragraph (c).
805.3 	(g) A licensee that receives approval from the commissioner to relocate a facility must 
805.4 	provide each resident with a new assisted living contract and comply with the coordinated 
805.5 	move requirements under section 144G.55.
805.6 	(h) A licensee denied approval by the commissioner of health to relocate a facility may 
805.7 	continue to operate the facility in its current location, follow the requirements in section 
805.8 	144G.57 and close the facility, or notify the commissioner of health of the licensee's intent 
805.9 	to relocate the facility to an alternative new location. If the licensee notifies the commissioner 
805.10 	of the licensee's intent to relocate the facility to an alternative new location, paragraph (c) 
805.11 	applies, including the timelines for approving or denying the license relocation for the 
805.12 	alternative new location.
805.13 		Subd. 2.Limited exemption from the customized living setting moratorium and 
805.14 	age limitations. (a) A licensee that receives approval from the commissioner of health under 
805.15 	subdivision 1 to relocate a facility that is also enrolled with the Department of Human 
805.16 	Services as a customized living setting to deliver 24-hour customized living services or 
805.17 	customized living services to participants through the brain injury and community access 
805.18 	for disability inclusion home and community-based services waiver plans and under section 
805.19 	256B.49 must inform the commissioner of human services of the licensee's intent to relocate.
805.20 	(b) If the licensee at the time of the intended relocation is providing customized living 
805.21 	or 24-hour customized living services under the brain injury and community access for 
805.22 	disability inclusion home and community-based services waiver plans and section 256B.49 
805.23 	to at least one individual, and the licensee intends to continue serving that individual in the 
805.24 	new location, the licensee must inform the commissioner of human services of the licensee's 
805.25 	intention to do so and meet the requirements specified under section 256B.49, subdivision 
805.26 	28a.

805.27 	EFFECTIVE DATE. This section is effective January 1, 2025, except subdivision 2 
805.28 	is effective January 1, 2025, or 90 days after federal approval, whichever is later. The 
805.29 	commissioner of human services shall notify the revisor of statutes when federal approval 
805.30 	is obtained.

805.31 	Sec. 2. Minnesota Statutes 2022, section 144G.41, subdivision 1, is amended to read:
805.32 		Subdivision 1.Minimum requirements. All assisted living facilities shall:
805.33 	(1) distribute to residents the assisted living bill of rights;
806.1 	(2) provide services in a manner that complies with the Nurse Practice Act in sections 
806.2 	148.171 to 148.285;
806.3 	(3) utilize a person-centered planning and service delivery process;
806.4 	(4) have and maintain a system for delegation of health care activities to unlicensed 
806.5 	personnel by a registered nurse, including supervision and evaluation of the delegated 
806.6 	activities as required by the Nurse Practice Act in sections 148.171 to 148.285;
806.7 	(5) provide a means for residents to request assistance for health and safety needs 24 
806.8 	hours per day, seven days per week;
806.9 	(6) allow residents the ability to furnish and decorate the resident's unit within the terms 
806.10 	of the assisted living contract;
806.11 	(7) permit residents access to food at any time;
806.12 	(8) allow residents to choose the resident's visitors and times of visits;
806.13 	(9) allow the resident the right to choose a roommate if sharing a unit;
806.14 	(10) notify the resident of the resident's right to have and use a lockable door to the 
806.15 	resident's unit. The licensee shall provide the locks on the unit. Only a staff member with 
806.16 	a specific need to enter the unit shall have keys, and advance notice must be given to the 
806.17 	resident before entrance, when possible. An assisted living facility must not lock a resident 
806.18 	in the resident's unit;
806.19 	(11) develop and implement a staffing plan for determining its staffing level that:
806.20 	(i) includes an evaluation, to be conducted at least twice a year, of the appropriateness 
806.21 	of staffing levels in the facility;
806.22 	(ii) ensures sufficient staffing at all times to meet the scheduled and reasonably 
806.23 	foreseeable unscheduled needs of each resident as required by the residents' assessments 
806.24 	and service plans on a 24-hour per day basis; and
806.25 	(iii) ensures that the facility can respond promptly and effectively to individual resident 
806.26 	emergencies and to emergency, life safety, and disaster situations affecting staff or residents 
806.27 	in the facility;
806.28 	(12) ensure that one or more persons are available 24 hours per day, seven days per 
806.29 	week, who are responsible for responding to the requests of residents for assistance with 
806.30 	health or safety needs. Such persons must be:
806.31 	(i) awake;
807.1 	(ii) located in the same building, in an attached building, or on a contiguous campus 
807.2 	with the facility in order to respond within a reasonable amount of time;
807.3 	(iii) capable of communicating with residents;
807.4 	(iv) capable of providing or summoning the appropriate assistance; and
807.5 	(v) capable of following directions; and
807.6 	(13) offer to provide or make available at least the following services to residents:
807.7 	(i) at least three nutritious meals daily with snacks available seven days per week, 
807.8 	according to the recommended dietary allowances in the United States Department of 
807.9 	Agriculture (USDA) guidelines, including seasonal fresh fruit and fresh vegetables. The 
807.10 	following apply:
807.11 	(A) menus must be prepared at least one week in advance, and made available to all 
807.12 	residents. The facility must encourage residents' involvement in menu planning. Meal 
807.13 	substitutions must be of similar nutritional value if a resident refuses a food that is served. 
807.14 	Residents must be informed in advance of menu changes;
807.15 	(B) food must be prepared and served according to the Minnesota Food Code, Minnesota 
807.16 	Rules, chapter 4626; and
807.17 	(C) the facility cannot require a resident to include and pay for meals in their contract;
807.18 	(ii) weekly housekeeping;
807.19 	(iii) weekly laundry service;
807.20 	(iv) upon the request of the resident, provide direct or reasonable assistance with arranging 
807.21 	for transportation to medical and social services appointments, shopping, and other recreation, 
807.22 	and provide the name of or other identifying information about the persons responsible for 
807.23 	providing this assistance;
807.24 	(v) upon the request of the resident, provide reasonable assistance with accessing 
807.25 	community resources and social services available in the community, and provide the name 
807.26 	of or other identifying information about persons responsible for providing this assistance;
807.27 	(vi) provide culturally sensitive programs; and
807.28 	(vii) have a daily program of social and recreational activities that are based upon 
807.29 	individual and group interests, physical, mental, and psychosocial needs, and that creates 
807.30 	opportunities for active participation in the community at large; and
808.1 	(14) (13) provide staff access to an on-call registered nurse 24 hours per day, seven days 
808.2 	per week.

808.3 	Sec. 3. Minnesota Statutes 2022, section 144G.41, is amended by adding a subdivision to 
808.4 	read:
808.5 		Subd. 1a.Minimum requirements; required food services. (a) All assisted living 
808.6 	facilities must offer to provide or make available at least three nutritious meals daily with 
808.7 	snacks available seven days per week, according to the recommended dietary allowances 
808.8 	in the United States Department of Agriculture (USDA) guidelines, including seasonal fresh 
808.9 	fruit and fresh vegetables. The menus must be prepared at least one week in advance, and 
808.10 	made available to all residents. The facility must encourage residents' involvement in menu 
808.11 	planning. Meal substitutions must be of similar nutritional value if a resident refuses a food 
808.12 	that is served. Residents must be informed in advance of menu changes. The facility must 
808.13 	not require a resident to include and pay for meals in the resident's contract. Except as 
808.14 	provided in paragraph (b), food must be prepared and served according to the Minnesota 
808.15 	Food Code, Minnesota Rules, chapter 4626.
808.16 	(b) For an assisted living facility with a licensed capacity of ten or fewer residents:
808.17 	(1) notwithstanding Minnesota Rules, part 4626.0033, item A, the facility may share a 
808.18 	certified food protection manager (CFPM) with one other facility located within a 60-mile 
808.19 	radius and under common management provided the CFPM is present at each facility 
808.20 	frequently enough to effectively administer, manage, and supervise each facility's food 
808.21 	service operation;
808.22 	(2) notwithstanding Minnesota Rules, part 4626.0545, item A, kick plates that are not 
808.23 	removable or cannot be rotated open are allowed unless the facility has been issued repeated 
808.24 	correction orders for violations of Minnesota Rules, part 4626.1565 or 4626.1570;
808.25 	(3) notwithstanding Minnesota Rules, part 4626.0685, item A, the facility is not required 
808.26 	to provide integral drainboards, utensil racks, or tables large enough to accommodate soiled 
808.27 	and clean items that may accumulate during hours of operation provided soiled items do 
808.28 	not contaminate clean items, surfaces, or food, and clean equipment and dishes are air dried 
808.29 	in a manner that prevents contamination before storage;
808.30 	(4) notwithstanding Minnesota Rules, part 4626.1070, item A, the facility is not required 
808.31 	to install a dedicated handwashing sink in its existing kitchen provided it designates one 
808.32 	well of a two-compartment sink for use only as a handwashing sink;
809.1 	(5) notwithstanding Minnesota Rules, parts 4626.1325, 4626.1335, and 4626.1360, item 
809.2 	A, existing floor, wall, and ceiling finishes are allowed provided the facility keeps them 
809.3 	clean and in good condition;
809.4 	(6) notwithstanding Minnesota Rules, part 4626.1375, shielded or shatter-resistant 
809.5 	lightbulbs are not required, but if a light bulb breaks, the facility must discard all exposed 
809.6 	food and fully clean all equipment, dishes, and surfaces to remove any glass particles; and
809.7 	(7) notwithstanding Minnesota Rules, part 4626.1390, toilet rooms are not required to 
809.8 	be provided with a self-closing door.

809.9 	Sec. 4. Minnesota Statutes 2022, section 144G.41, is amended by adding a subdivision to 
809.10 	read:
809.11 		Subd. 1b.Minimum requirements; other required services. All assisted living facilities 
809.12 	must offer to provide or make available the following services to residents:
809.13 	(1) weekly housekeeping;
809.14 	(2) weekly laundry service;
809.15 	(3) upon the request of the resident, provide direct or reasonable assistance with arranging 
809.16 	for transportation to medical and social services appointments, shopping, and other recreation, 
809.17 	and provide the name of or other identifying information about the persons responsible for 
809.18 	providing this assistance;
809.19 	(4) upon the request of the resident, provide reasonable assistance with accessing 
809.20 	community resources and social services available in the community, and provide the name 
809.21 	of or other identifying information about persons responsible for providing this assistance;
809.22 	(5) provide culturally sensitive programs; and
809.23 	(6) have a daily program of social and recreational activities that are based upon individual 
809.24 	and group interests, physical, mental, and psychosocial needs, and that creates opportunities 
809.25 	for active participation in the community at large.

809.26 	Sec. 5. Minnesota Statutes 2022, section 144G.63, subdivision 1, is amended to read:
809.27 		Subdivision 1.Orientation of staff and supervisors. (a) All staff providing and 
809.28 	supervising direct services must complete an orientation to assisted living facility licensing 
809.29 	requirements and regulations before providing assisted living services to residents. The 
809.30 	orientation may be incorporated into the training required under subdivision 5. The orientation 
810.1 	need only be completed once for each staff person and is not transferable to another facility, 
810.2 	except as provided in paragraph (b).
810.3 	(b) A staff person is not required to repeat the orientation required under subdivision 2 
810.4 	if the staff person transfers from one licensed assisted living facility to another facility 
810.5 	operated by the same licensee or by a licensee affiliated with the same corporate organization 
810.6 	as the licensee of the first facility, or to another facility managed by the same entity managing 
810.7 	the first facility. The facility to which the staff person transfers must document that the staff 
810.8 	person completed the orientation at the prior facility. The facility to which the staff person 
810.9 	transfers must nonetheless provide the transferred staff person with supplemental orientation 
810.10 	specific to the facility and document that the supplemental orientation was provided. The 
810.11 	supplemental orientation must include the types of assisted living services the staff person 
810.12 	will be providing, the facility's category of licensure, and the facility's emergency procedures. 
810.13 	A staff person cannot transfer to an assisted living facility with dementia care without 
810.14 	satisfying the additional training requirements under section 144G.83.

810.15 	Sec. 6. Minnesota Statutes 2022, section 144G.63, subdivision 4, is amended to read:
810.16 		Subd. 4.Training required relating to dementia, mental illness, and de-escalation. All 
810.17 	direct care staff and supervisors providing direct services must demonstrate an understanding 
810.18 	of the training specified in section 144G.64.

810.19 	EFFECTIVE DATE. This section is effective July 1, 2025.

810.20 	Sec. 7. Minnesota Statutes 2022, section 144G.64, is amended to read:
810.21 	144G.64 TRAINING IN DEMENTIA CARE, MENTAL ILLNESS, AND 
810.22 	DE-ESCALATION REQUIRED.
810.23 	(a) All assisted living facilities must meet the following dementia care, mental illness, 
810.24 	and de-escalation training requirements:
810.25 	(1) supervisors of direct-care staff must have at least eight hours of initial training on 
810.26 	dementia topics specified under paragraph (b), clauses (1) to (5), and two hours of initial 
810.27 	training on mental illness and de-escalation topics specified under paragraph (b), clauses 
810.28 	(6) to (8), within 120 working hours of the employment start date, and. Supervisors must 
810.29 	have at least two hours of training on topics related to dementia care and one hour of training 
810.30 	on topics related to mental illness and de-escalation for each 12 months of employment 
810.31 	thereafter;
811.1 	(2) direct-care employees must have completed at least eight hours of initial training on 
811.2 	dementia topics specified under paragraph (b), clauses (1) to (5), and two hours of initial 
811.3 	training on mental illness and de-escalation topics specified under paragraph (b), clauses 
811.4 	(6) to (8), within 160 working hours of the employment start date. Until this initial training 
811.5 	is complete, an employee must not provide direct care unless there is another employee on 
811.6 	site who has completed the initial eight hours of training on topics related to dementia care
811.7 	and the initial two hours of training on topics related to mental illness and de-escalation and 
811.8 	who can act as a resource and assist if issues arise. A trainer of the requirements under 
811.9 	paragraph (b) or a supervisor meeting the requirements in clause (1) must be available for 
811.10 	consultation with the new employee until the training requirement is complete. Direct-care 
811.11 	employees must have at least two hours of training on topics related to dementia and one 
811.12 	hour of training on topics related to mental illness and de-escalation for each 12 months of 
811.13 	employment thereafter;
811.14 	(3) for assisted living facilities with dementia care, direct-care employees must have 
811.15 	completed at least eight hours of initial training on topics specified under paragraph (b) 
811.16 	within 80 working hours of the employment start date. Until this initial training is complete, 
811.17 	an employee must not provide direct care unless there is another employee on site who has 
811.18 	completed the initial eight hours of training on topics related to dementia careand two hours 
811.19 	of training on topics related to mental illness and de-escalation and who can act as a resource 
811.20 	and assist if issues arise. A trainer of the requirements under paragraph (b) or a supervisor 
811.21 	meeting the requirements in clause (1) must be available for consultation with the new 
811.22 	employee until the training requirement is complete. Direct-care employees must have at 
811.23 	least two hours of training on topics related to dementia and one hour of training on topics 
811.24 	related to mental illness and de-escalation for each 12 months of employment thereafter;
811.25 	(4) staff who do not provide direct care, including maintenance, housekeeping, and food 
811.26 	service staff, must have at least four hours of initial training on topics specified under 
811.27 	paragraph (b), clauses (1) to (5), and two hours of initial training on mental illness and 
811.28 	de-escalation topics specified under paragraph (b), clauses (6) to (8), within 160 working 
811.29 	hours of the employment start date, and must have at least two hours of training on topics 
811.30 	related to dementia care and one hour of training on topics related to mental illness and 
811.31 	de-escalation for each 12 months of employment thereafter; and
811.32 	(5) new employees may satisfy the initial training requirements by producing written 
811.33 	proof of previously completed required training within the past 18 months.
811.34 	(b) Areas of required dementia, mental illness, and de-escalation training include:
812.1 	(1) an explanation of Alzheimer's disease and other dementias;
812.2 	(2) assistance with activities of daily living;
812.3 	(3) problem solving with challenging behaviors;
812.4 	(4) communication skills; and
812.5 	(5) person-centered planning and service delivery.;
812.6 	(6) recognizing symptoms of common mental illness diagnoses, including but not limited 
812.7 	to mood disorders, anxiety disorders, trauma- and stressor-related disorders, personality 
812.8 	and psychotic disorders, substance use disorder, and substance misuse;
812.9 	(7) de-escalation techniques and communication; and
812.10 	(8) crisis resolution and suicide prevention, including procedures for contacting county 
812.11 	crisis response teams and 988 suicide and crisis lifelines.
812.12 	(c) The facility shall provide to consumers in written or electronic form a description of 
812.13 	the training program, the categories of employees trained, the frequency of training, and 
812.14 	the basic topics covered.

812.15 	EFFECTIVE DATE. This section is effective July 1, 2025.

812.16 	Sec. 8. Minnesota Statutes 2022, section 256.9755, subdivision 2, is amended to read:
812.17 		Subd. 2.Authority. The Minnesota Board on Aging shall allocate to area agencies on 
812.18 	aging the state funds which that are received under this section for the caregiver support 
812.19 	program in a manner consistent with federal requirements. The board shall give priority to 
812.20 	those areas where there is a high need of respite services as evidenced by the data provided 
812.21 	by the board.

812.22 	Sec. 9. Minnesota Statutes 2022, section 256.9755, subdivision 3, is amended to read:
812.23 		Subd. 3.Caregiver support services. Funds allocated under this section to an area 
812.24 	agency on aging for caregiver support services must be used in a manner consistent with 
812.25 	the National Family Caregiver Support Program to reach family caregivers of persons with 
812.26 	ALS, except that and such funds may be used to provide services benefiting people under 
812.27 	the age of 60 and their caregivers. The funds must be used to provide social, 
812.28 	community-based services and activities that provide social interaction for participants. The 
812.29 	funds may also be used to provide respite care.

813.1 	Sec. 10. Minnesota Statutes 2023 Supplement, section 256.9756, subdivision 1, is amended 
813.2 	to read:
813.3 		Subdivision 1.Caregiver respite services grant program established. The Minnesota 
813.4 	Board on Aging must establish a caregiver respite services grant program to increase the 
813.5 	availability of respite services for family caregivers of people with dementia and older adults
813.6 	and to provide information, education, and training to respite caregivers and volunteers 
813.7 	regarding caring for people with dementia. From the money made available for this purpose, 
813.8 	the board must award grants on a competitive basis to respite service providers, giving 
813.9 	priority to areas of the state where there is a high need of respite services.

813.10 	Sec. 11. Minnesota Statutes 2023 Supplement, section 256.9756, subdivision 2, is amended 
813.11 	to read:
813.12 		Subd. 2.Eligible uses. Grant recipients awarded grant money under this section must 
813.13 	use a portion of the grant award as determined by the board to provide free or subsidized 
813.14 	respite services for family caregivers of people with dementia and older adults.

813.15 	Sec. 12. Minnesota Statutes 2023 Supplement, section 256B.0913, subdivision 5, as 
813.16 	amended by Laws 2024, chapter 85, section 68, is amended to read:
813.17 		Subd. 5.Services covered under alternative care. (a) Alternative care funding may 
813.18 	be used for payment of costs of:
813.19 	(1) adult day services and adult day services bath;
813.20 	(2) home care;
813.21 	(3) homemaker services;
813.22 	(4) personal care;
813.23 	(5) case management and conversion case management;
813.24 	(6) respite care;
813.25 	(7) specialized supplies and equipment;
813.26 	(8) home-delivered meals;
813.27 	(9) nonmedical transportation;
813.28 	(10) nursing services;
813.29 	(11) chore services;
814.1 	(12) companion services;
814.2 	(13) nutrition services;
814.3 	(14) family caregiver training and education;
814.4 	(15) coaching and counseling;
814.5 	(16) telehome care to provide services in their own homes in conjunction with in-home 
814.6 	visits;
814.7 	(17) consumer-directed community supports;
814.8 	(18) environmental accessibility and adaptations; and
814.9 	(19) transitional services; and
814.10 	(19) (20) discretionary services, for which lead agencies may make payment from their 
814.11 	alternative care program allocation for services not otherwise defined in this section or 
814.12 	section 256B.0625, following approval by the commissioner.
814.13 	(b) Total annual payments for discretionary services for all clients served by a lead 
814.14 	agency must not exceed 25 percent of that lead agency's annual alternative care program 
814.15 	base allocation, except that when alternative care services receive federal financial 
814.16 	participation under the 1115 waiver demonstration, funding shall be allocated in accordance 
814.17 	with subdivision 17.

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

814.21 	Sec. 13. Minnesota Statutes 2022, section 256B.0913, subdivision 5a, is amended to read:
814.22 		Subd. 5a.Services; service definitions; service standards. (a) Unless specified in 
814.23 	statute, the services, service definitions, and standards for alternative care services shall be 
814.24 	the same as the services, service definitions, and standards specified in the federally approved 
814.25 	elderly waiver plan, except alternative care does not cover transitional support services,
814.26 	assisted living services, adult foster care services, and residential care and benefits defined 
814.27 	under section 256B.0625 that meet primary and acute health care needs.
814.28 	(b) The lead agency must ensure that the funds are not used to supplant or supplement 
814.29 	services available through other public assistance or services programs, including 
814.30 	supplementation of client co-pays, deductibles, premiums, or other cost-sharing arrangements 
814.31 	for health-related benefits and services or entitlement programs and services that are available 
815.1 	to the person, but in which they have elected not to enroll. The lead agency must ensure 
815.2 	that the benefit department recovery system in the Medicaid Management Information 
815.3 	System (MMIS) has the necessary information on any other health insurance or third-party 
815.4 	insurance policy to which the client may have access. Supplies and equipment may be 
815.5 	purchased from a vendor not certified to participate in the Medicaid program if the cost for 
815.6 	the item is less than that of a Medicaid vendor.
815.7 	(c) Personal care services must meet the service standards defined in the federally 
815.8 	approved elderly waiver plan, except that a lead agency may authorize services to be provided 
815.9 	by a client's relative who meets the relative hardship waiver requirements or a relative who 
815.10 	meets the criteria and is also the responsible party under an individual service plan that 
815.11 	ensures the client's health and safety and supervision of the personal care services by a 
815.12 	qualified professional as defined in section 256B.0625, subdivision 19c. Relative hardship 
815.13 	is established by the lead agency when the client's care causes a relative caregiver to do any 
815.14 	of the following: resign from a paying job, reduce work hours resulting in lost wages, obtain 
815.15 	a leave of absence resulting in lost wages, incur substantial client-related expenses, provide 
815.16 	services to address authorized, unstaffed direct care time, or meet special needs of the client 
815.17 	unmet in the formal service plan.
815.18 	(d) Alternative care covers sign language interpreter services and spoken language 
815.19 	interpreter services for recipients eligible for alternative care when the services are necessary 
815.20 	to help deaf and hard-of-hearing recipients or recipients with limited English proficiency 
815.21 	obtain covered services. Coverage for face-to-face spoken language interpreter services 
815.22 	shall be provided only if the spoken language interpreter used by the enrolled health care 
815.23 	provider is listed in the registry or roster established under section 144.058.

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

815.27 	Sec. 14. Minnesota Statutes 2022, section 256B.434, is amended by adding a subdivision 
815.28 	to read:
815.29 		Subd. 4k.Property rate increase for certain nursing facilities. (a) A rate increase 
815.30 	under this subdivision ends upon the effective date of the transition of the facility's property 
815.31 	rate to a property payment rate under section 256R.26, subdivision 8, or May 31, 2026, 
815.32 	whichever is earlier.
815.33 	(b) The commissioner shall increase the property rate of a nursing facility located in the 
815.34 	city of St. Paul at 1415 Almond Avenue in Ramsey County by $10.65 on January 1, 2025.
816.1 	(c) The commissioner shall increase the property rate of a nursing facility located in the 
816.2 	city of Duluth at 3111 Church Place in St. Louis County by $20.81 on January 1, 2025.
816.3 	(d) The commissioner shall increase the property rate of a nursing facility located in the 
816.4 	city of Chatfield at 1102 Liberty Street SE in Fillmore County by $21.35 on January 1, 
816.5 	2025.
816.6 	(e) Effective January 1, 2025, through June 30, 2025, the commissioner shall increase 
816.7 	the property rate of a nursing facility located in the city of Fergus Falls at 1131 South 
816.8 	Mabelle Avenue in Ottertail County by $38.56.

816.9 	EFFECTIVE DATE. This section is effective January 1, 2025.

816.10 	Sec. 15. Minnesota Statutes 2022, section 256B.49, is amended by adding a subdivision 
816.11 	to read:
816.12 		Subd. 28a.Transfer of customized living enrollment dates. (a) For the purposes of 
816.13 	this subdivision, "operational" has the meaning given in subdivision 28.
816.14 	(b) This paragraph applies only to customized living settings enrolled and operational 
816.15 	on or before June 30, 2021, and customized living settings that have previously transferred 
816.16 	their customized living enrollment date under this paragraph. A provider that receives 
816.17 	approval from the commissioner of health under section 144G.195, subdivision 1, to relocate 
816.18 	a licensed assisted living facility that was enrolled prior to January 11, 2021, to deliver 
816.19 	medical assistance 24-hour customized living services, or customized living services as 
816.20 	defined by the brain injury and community access for disability inclusion federally approved 
816.21 	home and community-based services waiver plans, may continue to operate the customized 
816.22 	living setting under the original setting's customized living enrollment date if all of the 
816.23 	requirements under this subdivision are met.
816.24 	(c) A transfer of enrollment date is allowed under this subdivision only if the facility 
816.25 	relocation is due to:
816.26 	(1) a provider that rents the original setting being unable to continue to rent the original 
816.27 	setting because of eviction, nonrenewal of its lease by the property owner, or sale of the 
816.28 	property by the owner;
816.29 	(2) a provider that rents the original setting being unable to make the necessary updates 
816.30 	or improvements to the original setting to comply with the physical plant and other 
816.31 	requirements under state or federal law, including but not limited to chapter 144G;
816.32 	(3) a provider's monthly rent increasing more than three percent in a 12-month period;
817.1 	(4) the original setting being destroyed or damaged by fire, lightning, flood, wind, ground 
817.2 	shifts, or other such hazards, including environmental hazards, to such an extent that the 
817.3 	original setting cannot be repaired and the safety of residents would be jeopardized by 
817.4 	continuing to reside in the original setting; or
817.5 	(5) a provider or an entity that directly or indirectly through one or more intermediaries 
817.6 	is controlled by, is under common control with, or controls the entity enrolled to provide 
817.7 	customized living services at the current setting purchases a new setting and the commissioner 
817.8 	of health approves the relocation of the provider's assisted living facility  license to the newly 
817.9 	purchased setting.
817.10 	(d) When a relocation is necessitated by a qualifying situation under paragraph (c), 
817.11 	clauses (1) to (5), the provider must submit a notification to the commissioner of human 
817.12 	services, the ombudsman of long-term care, the ombudsperson of mental health and 
817.13 	developmental disabilities, relevant lead agencies, each resident's case manager, and either 
817.14 	each person receiving services at the setting or the person's legal representative. The 
817.15 	notification must be made at least 30 days prior to the relocation date and on forms and in 
817.16 	the manner prescribed by the commissioner of human services.
817.17 	(e) A provider proposing to transfer a customized living setting enrollment date to a new 
817.18 	setting must submit, with the provider's notification to the commissioner of human services 
817.19 	under paragraph (d), the following information:
817.20 	(1) the addresses of the vacating location and of the proposed new location;
817.21 	(2) the anticipated date of the move to the new location;
817.22 	(3) contacts for the lead agency and each resident's waiver case manager;
817.23 	(4) documentation that the Department of Health has received an application to relocate 
817.24 	pursuant to section 144G.195, subdivision 1, for the new location; and
817.25 	(5) documentation that the customized living provider's assisted living facility license 
817.26 	is not conditional.
817.27 	(f) The commissioner of human services has 30 days to approve or deny requests to 
817.28 	transfer the original setting's customized living enrollment date to the new setting.
817.29 	(g) The commissioner of human services must deny requests to transfer a customized 
817.30 	living enrollment date to a new setting if:
817.31 	(1) the new setting approved by the commissioner of health under section 144G.195, 
817.32 	subdivision 1, is adjoined to or on the same property as an institution as defined in Code of 
818.1 	Federal Regulations, title 42, section 441.301(c), or one or more licensed assisted living 
818.2 	facilities;
818.3 	(2) the requesting provider fails to notify the commissioner of human services of the 
818.4 	proposed relocation within the time frames required under this subdivision;
818.5 	(3) the requesting provider's assisted living facility license is conditional; or
818.6 	(4) the requesting provider is changing ownership at the same time as the proposed 
818.7 	relocation.
818.8 	(h) The setting to which the original customized living enrollment date is transferred 
818.9 	must:
818.10 	(1) comply with setting requirements in the brain injury and community access for 
818.11 	disability inclusion federally approved home and community-based services waiver plans 
818.12 	and under this section as the requirements existed on the customized living enrollment date 
818.13 	of the original setting;
818.14 	(2) have a resident capacity less than or equal to the resident capacity of the original 
818.15 	setting;
818.16 	(3) not require or coerce any resident of the original setting to move to the new setting, 
818.17 	consistent with informed choice and independent living policies under section 256B.4905, 
818.18 	subdivisions 1a, 2a, 3a, and 8; and
818.19 	(4) provide each resident with a new assisted living contract and comply with the 
818.20 	coordinated move requirements under section 144G.55.

818.21 	EFFECTIVE DATE. This section is effective January 1, 2025, or 90 days after federal 
818.22 	approval, whichever is later. The commissioner of human services shall notify the revisor 
818.23 	of statutes when federal approval is obtained.

818.24 	Sec. 16. Minnesota Statutes 2023 Supplement, section 256R.55, is amended to read:
818.25 	256R.55 FINANCIALLY DISTRESSED NURSING FACILITYLONG-TERM 
818.26 	SERVICES AND SUPPORTS LOAN PROGRAM.
818.27 		Subdivision 1.Financially distressed nursing facility loans Long-term services and 
818.28 	supports loan program. The commissioner of human services shall establish a competitive 
818.29 	financially distressed nursing facility loan program to provide operating loans to eligible 
818.30 	nursing long-term services and supports providers and facilities. The commissioner shall 
818.31 	initiate the application process for the loan described in this section at least once annually
819.1 	if money is available. A second application process may be initiated each year at the 
819.2 	discretion of the commissioner.
819.3 		Subd. 2.Eligibility. To be an eligible applicant for a loan under this section, a nursing 
819.4 	facility provider must submit to the commissioner of human services a loan application in 
819.5 	the form and according to the timelines established by the commissioner. In its loan 
819.6 	application, a loan applicant must demonstrate that the following:
819.7 	(1) for nursing facilities with a medical assistance provider agreement that are licensed 
819.8 	as a nursing home or boarding care home according to section 256R.02, subdivision 33:
819.9 	(1) (i) the total net income of the nursing facility is not generating sufficient revenue to 
819.10 	cover the nursing facility's operating expenses;
819.11 	(2) (ii) the nursing facility is at risk of closure; and
819.12 	(3) (iii) additional operating revenue is necessary to either preserve access to nursing 
819.13 	facility services within the community or support people with complex, high-acuity support 
819.14 	needs.; and
819.15 	(2) for other long-term services and supports providers:
819.16 	(i) demonstration that the provider is enrolled in a Minnesota health care program and 
819.17 	provides one or more of the following services in a Minnesota health care program:
819.18 	(A) home and community-based services under chapter 245D;
819.19 	(B) personal care assistance services under section 256B.0659;
819.20 	(C) community first services and supports under section 256B.85;
819.21 	(D) early intensive developmental and behavioral intervention services under section 
819.22 	256B.0949;
819.23 	(E) home care services as defined under section 256B.0651, subdivision 1, paragraph 
819.24 	(d); or
819.25 	(F) customized living services as defined in section 256S.02; and
819.26 	(ii) additional operating revenue is necessary to preserve access to services within the 
819.27 	community, expand services to people within the community, expand services to new 
819.28 	communities, or support people with complex, high-acuity support needs.
819.29 		Subd. 2a.Allowable uses of loan money. (a) A loan awarded to a nursing facility under 
819.30 	subdivision 2, clause (1), must only be used to cover the facility's short-term operating 
820.1 	expenses. Nursing facilities receiving loans must not use the loan proceeds to pay related 
820.2 	organizations as defined in section 256R.02, subdivision 43.
820.3 	(b) A loan awarded to a long-term services and supports provider under subdivision 2, 
820.4 	clause (2), must only be used to cover expenses related to achieving outcomes identified in 
820.5 	subdivision 2, clause (2), item (ii).
820.6 		Subd. 3.Approving loans. The commissioner must evaluate all loan applications on a 
820.7 	competitive basis and award loans to successful applicants within available appropriations 
820.8 	for this purpose. The commissioner's decisions are final and not subject to appeal.
820.9 		Subd. 4.Disbursement schedule. Successful loan applicants under this section may 
820.10 	receive loan disbursements as a lump sum, or on an agreed upon disbursement schedule, or 
820.11 	as a time-limited line of credit. The commissioner shall approve disbursements to successful 
820.12 	loan applicants through a memorandum of understanding. Memoranda of understanding 
820.13 	must specify the amount and schedule of loan disbursements.
820.14 		Subd. 5.Loan administration. The commissioner may contract with an independent 
820.15 	third party to administer the loan program under this section.
820.16 		Subd. 6.Loan payments. The commissioner shall negotiate the terms of the loan 
820.17 	repayment, including the start of the repayment plan, the due date of the repayment, and 
820.18 	the frequency of the repayment installments. Repayment installments must not begin until 
820.19 	at least 18 months after the first disbursement date. The memoranda of understanding must 
820.20 	specify the amount and schedule of loan payments. The repayment term must not exceed 
820.21 	72 months. If any loan payment to the commissioner is not paid within the time specified 
820.22 	by the memoranda of understanding, the late payment must be assessed a penalty rate of 
820.23 	0.01 percent of the original loan amount each month the payment is past due. For nursing 
820.24 	facilities, this late fee is not an allowable cost on the department's cost report. The 
820.25 	commissioner shall have the power to abate penalties when discrepancies occur resulting 
820.26 	from but not limited to circumstances of error and mail delivery.
820.27 		Subd. 7.Loan repayment. (a) If a borrower is more than 60 calendar days delinquent 
820.28 	in the timely payment of a contractual payment under this section, the provisions in 
820.29 	paragraphs (b) to (e) apply.
820.30 	(b) The commissioner may withhold some or all of the amount of the delinquent loan 
820.31 	payment, together with any penalties due and owing on those amounts, from any money 
820.32 	the department owes to the borrower. The commissioner may, at the commissioner's 
820.33 	discretion, also withhold future contractual payments from any money the commissioner 
820.34 	owes the provider as those contractual payments become due and owing. The commissioner 
821.1 	may continue this withholding until the commissioner determines there is no longer any 
821.2 	need to do so.
821.3 	(c) The commissioner shall give prior notice of the commissioner's intention to withhold 
821.4 	by mail, facsimile, or email at least ten business days before the date of the first payment 
821.5 	period for which the withholding begins. The notice must be deemed received as of the date 
821.6 	of mailing or receipt of the facsimile or electronic notice. The notice must:
821.7 	(1) state the amount of the delinquent contractual payment;
821.8 	(2) state the amount of the withholding per payment period;
821.9 	(3) state the date on which the withholding is to begin;
821.10 	(4) state whether the commissioner intends to withhold future installments of the 
821.11 	provider's contractual payments; and
821.12 	(5) state other contents as the commissioner deems appropriate.
821.13 	(d) The commissioner, or the commissioner's designee, may enter into written settlement 
821.14 	agreements with a provider to resolve disputes and other matters involving unpaid loan 
821.15 	contractual payments or future loan contractual payments.
821.16 	(e) Notwithstanding any law to the contrary, all unpaid loans, plus any accrued penalties, 
821.17 	are overpayments for the purposes of section 256B.0641, subdivision 1. The current owner 
821.18 	of a nursing home or, boarding care home, or long-term services and supports provider is 
821.19 	liable for the overpayment amount owed by a former owner for any facility sold, transferred, 
821.20 	or reorganized.
821.21 		Subd. 8.Audit. Loan money allocated under this section is subject to audit to determine 
821.22 	whether the money was spent as authorized under this section.
821.23 		Subd. 8a.Special revenue account. A long-term services and supports loan account is 
821.24 	created in the special revenue fund in the state treasury. Money appropriated for the purposes 
821.25 	of this section must be transferred to the long-term services and supports loan account. All 
821.26 	payments received under subdivision 6, along with fees, penalties, and interest, must be 
821.27 	deposited into the special revenue account and are appropriated to the commissioner for the 
821.28 	purposes of this section.
821.29 		Subd. 9.Carryforward. Notwithstanding section 16A.28, subdivision 3, any 
821.30 	appropriation money in the long-term services and supports loan account for the purposes 
821.31 	under this section carries forward and does not lapse until the close of the fiscal year in 
821.32 	which this section expires.
822.1 		Subd. 10.Expiration. This section expires June 30, 2029.

822.2 	EFFECTIVE DATE. This section is effective July 1, 2024, except that subdivision 8a 
822.3 	is effective retroactively from July 1, 2023.

822.4 	Sec. 17. [256S.191] ELDERLY WAIVER BUDGET AND RATE EXCEPTIONS; 
822.5 	HIGH-NEED PARTICIPANTS.
822.6 		Subdivision 1.Eligibility for budget and rate exceptions. A participant is eligible to 
822.7 	request an elderly waiver budget and rate exception when:
822.8 	(1) hospitalization of the participant is no longer medically necessary but the participant 
822.9 	has not been discharged to the community due to lack of community care options;
822.10 	(2) the participant requires a support plan that exceeds elderly waiver budgets and rates 
822.11 	due to the participant's specific assessed needs; and
822.12 	(3) the participant meets all eligibility criteria for the elderly waiver.
822.13 		Subd. 2.Requests for budget and rate exceptions. (a) A participant eligible under 
822.14 	subdivision 1 may request, in a format prescribed by the commissioner, an elderly waiver 
822.15 	budget and rate exception when requesting an eligibility determination for elderly waiver 
822.16 	services. The participant may request an exception to the elderly waiver case mix caps, the 
822.17 	customized living service rate limits, service rates, or any combination of the three.
822.18 	(b) The participant must document in the request that the participant's needs cannot be 
822.19 	met within the existing case mix caps, customized living service rate limits, or service rates 
822.20 	and how an exception to any of the three will meet the participant's needs.
822.21 	(c) The participant must include in the request the basis for the underlying costs used to 
822.22 	determine the overall cost of the proposed service plan.
822.23 	(d) The commissioner must respond to all exception requests, whether the request is 
822.24 	granted, denied, or granted as modified. The commissioner must include in the response 
822.25 	the basis for the action and provide notification of the right to appeal.
822.26 	(e) Participants granted exceptions under this section must apply annually in a format 
822.27 	prescribed by the commissioner to continue or modify the exception.
822.28 	(f) A participant no longer qualifies for an exception when the participant's needs can 
822.29 	be met within standard elderly waiver budgets and rates.

823.1 	EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval, 
823.2 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
823.3 	when federal approval is obtained.

823.4 	Sec. 18. Minnesota Statutes 2022, section 256S.205, subdivision 2, is amended to read:
823.5 		Subd. 2.Rate adjustment application. (a) Effective through September 30, 2023, a 
823.6 	facility may apply to the commissioner for designation as a disproportionate share facility. 
823.7 	Applications must be submitted annually between September 1 and September 30. The 
823.8 	applying facility must apply in a manner determined by the commissioner. The applying 
823.9 	facility must document each of the following on the application:
823.10 	(1) the number of customized living residents in the facility on September 1 of the 
823.11 	application year, broken out by specific waiver program; and
823.12 	(2) the total number of people residing in the facility on September 1 of the application 
823.13 	year.
823.14 	(b) Effective October 1, 2023, the commissioner must not process any new applications 
823.15 	for disproportionate share facilities after the September 1 through September 30, 2023, 
823.16 	application period.
823.17 	(c) A facility that receives rate floor payments in rate year 2024 may submit an application 
823.18 	under this subdivision to maintain its designation as a disproportionate share facility for 
823.19 	rate year 2025.

823.20 	Sec. 19. Minnesota Statutes 2022, section 256S.205, subdivision 3, is amended to read:
823.21 		Subd. 3.Rate adjustment eligibility criteria. (a) Effective through September 30, 2023, 
823.22 	only facilities satisfying all of the following conditions on September 1 of the application 
823.23 	year are eligible for designation as a disproportionate share facility:
823.24 	(1) at least 83.5 percent of the residents of the facility are customized living residents; 
823.25 	and
823.26 	(2) at least 70 percent of the customized living residents are elderly waiver participants.
823.27 	(b) A facility determined eligible for the disproportionate share rate adjustment in 
823.28 	application year 2023 and receiving payments in rate year 2024 is eligible to receive payments 
823.29 	in rate year 2025 only if the commissioner determines that the facility continues to meet 
823.30 	the eligibility requirements under this subdivision as determined by the application process 
823.31 	under subdivision 2, paragraph (c).

824.1 	Sec. 20. Minnesota Statutes 2022, section 256S.205, subdivision 5, is amended to read:
824.2 		Subd. 5.Rate adjustment; rate floor. (a) Effective through December 31, 2025, 
824.3 	notwithstanding the 24-hour customized living monthly service rate limits under section 
824.4 	256S.202, subdivision 2, and the component service rates established under section 256S.201, 
824.5 	subdivision 4, the commissioner must establish a rate floor equal to $119 $141 per resident 
824.6 	per day for 24-hour customized living services provided to an elderly waiver participant in 
824.7 	a designated disproportionate share facility.
824.8 	(b) The commissioner must apply the rate floor to the services described in paragraph 
824.9 	(a) provided during the rate year.
824.10 	(c) The commissioner must adjust the rate floor by the same amount and at the same 
824.11 	time as any adjustment to the 24-hour customized living monthly service rate limits under 
824.12 	section 256S.202, subdivision 2.
824.13 	(d) The commissioner shall not implement the rate floor under this section if the 
824.14 	customized living rates established under sections 256S.21 to 256S.215 will be implemented 
824.15 	at 100 percent on January 1 of the year following an application year.

824.16 	EFFECTIVE DATE. This section is effective January 1, 2025.

824.17 	Sec. 21. Minnesota Statutes 2022, section 256S.205, is amended by adding a subdivision 
824.18 	to read:
824.19 		Subd. 7.Expiration. This section expires January 1, 2026.

824.20 	Sec. 22. DIRECTION TO COMMISSIONER; HOME AND COMMUNITY-BASED 
824.21 	SERVICES SYSTEM REFORM ANALYSIS.
 824.22 	(a) The commissioner of human services must study Minnesota's existing home and 
824.23 	community-based services system for older adults and evaluate options to meet the needs 
824.24 	of older adults with high support needs that cannot be addressed by services or individual 
824.25 	participant budgets available under the elderly waiver. The commissioner must propose 
824.26 	reforms to the home and community-based services system to meet the following goals:
824.27 	(1) address the needs of older adults with high support needs, including older adults with 
824.28 	high support needs currently residing in the community;
824.29 	(2) develop provider capacity to meet the needs of older adults with high support needs; 
824.30 	and
825.1 	(3) ensure access to a full range of services and supports necessary to address the needs 
825.2 	of older adults with high support needs.
825.3 	(b) The commissioner must submit a report with recommendations to meet the goals in 
825.4 	paragraph (a) to the chairs and ranking minority members of the legislative committees with 
825.5 	jurisdiction over human services finance and policy by December 31, 2025.

825.6 	Sec. 23. REVISOR INSTRUCTION.
 825.7 	The revisor of statutes shall renumber Minnesota Statutes, section 256R.55, as Minnesota 
825.8 	Statutes, section 256.4792, and correct all cross-references.

825.9 	ARTICLE 48
825.10 	SUBSTANCE USE DISORDER SERVICES

825.11 	Section 1. Minnesota Statutes 2022, section 151.065, subdivision 7, is amended to read:
825.12 		Subd. 7.Deposit of fees. (a) The license fees collected under this section, with the 
825.13 	exception of the fees identified in paragraphs (b) and (c), shall be deposited in the state 
825.14 	government special revenue fund.
825.15 	(b) $5,000 of each fee collected under subdivision 1, clauses (6) to (9), and (11) to (15), 
825.16 	and subdivision 3, clauses (4) to (7), and (9) to (13), and $55,000 of each fee collected under 
825.17 	subdivision 1, clause (16), and subdivision 3, clause (14), shall be deposited in the opiate 
825.18 	epidemic response fund established in section 256.043.
825.19 	(c) If the fees collected under subdivision 1, clause (16), or subdivision 3, clause (14), 
825.20 	are reduced under section 256.043, $5,000 of the reduced fee shall be deposited in the opiate 
825.21 	epidemic response fund in section 256.043.

825.22 	Sec. 2. Minnesota Statutes 2023 Supplement, section 245.91, subdivision 4, is amended 
825.23 	to read:
825.24 		Subd. 4.Facility or program. "Facility" or "program" means a nonresidential or 
825.25 	residential program as defined in section 245A.02, subdivisions 10 and 14, and any agency, 
825.26 	facility, or program that provides services or treatment for mental illness, developmental 
825.27 	disability, substance use disorder, or emotional disturbance that is required to be licensed, 
825.28 	certified, or registered by the commissioner of human services, health, or education; a sober 
825.29 	home as defined in section 254B.01, subdivision 11; peer recovery support services provided 
825.30 	by a recovery community organization as defined in section 254B.01, subdivision 8; and 
826.1 	an acute care inpatient facility that provides services or treatment for mental illness, 
826.2 	developmental disability, substance use disorder, or emotional disturbance.

826.3 	Sec. 3. Minnesota Statutes 2023 Supplement, section 245G.07, subdivision 2, is amended 
826.4 	to read:
826.5 		Subd. 2.Additional treatment service. A license holder may provide or arrange the 
826.6 	following additional treatment service as a part of the client's individual treatment plan:
826.7 	(1) relationship counseling provided by a qualified professional to help the client identify 
826.8 	the impact of the client's substance use disorder on others and to help the client and persons 
826.9 	in the client's support structure identify and change behaviors that contribute to the client's 
826.10 	substance use disorder;
826.11 	(2) therapeutic recreation to allow the client to participate in recreational activities 
826.12 	without the use of mood-altering chemicals and to plan and select leisure activities that do 
826.13 	not involve the inappropriate use of chemicals;
826.14 	(3) stress management and physical well-being to help the client reach and maintain an 
826.15 	appropriate level of health, physical fitness, and well-being;
826.16 	(4) living skills development to help the client learn basic skills necessary for independent 
826.17 	living;
826.18 	(5) employment or educational services to help the client become financially independent;
826.19 	(6) socialization skills development to help the client live and interact with others in a 
826.20 	positive and productive manner;
826.21 	(7) room, board, and supervision at the treatment site to provide the client with a safe 
826.22 	and appropriate environment to gain and practice new skills; and
826.23 	(8) peer recovery support services must be provided by an individual in a recovery peer
826.24 	qualified according to section 245I.04, subdivision 18. Peer recovery support services include 
826.25 	education; advocacy; mentoring through self-disclosure of personal recovery experiences; 
826.26 	attending recovery and other support groups with a client; accompanying the client to 
826.27 	appointments that support recovery; assistance accessing resources to obtain housing, 
826.28 	employment, education, and advocacy services; and nonclinical recovery support to assist 
826.29 	the transition from treatment into the recovery community must be provided according to 
826.30 	sections 254B.05, subdivision 5, and 254B.052.

826.31 	EFFECTIVE DATE. This section is effective January 1, 2025.

827.1 	Sec. 4. Minnesota Statutes 2023 Supplement, section 245I.04, subdivision 19, is amended 
827.2 	to read:
827.3 		Subd. 19.Recovery peer scope of practice. (a) A recovery peer, under the supervision 
827.4 	of an a licensed alcohol and drug counselor or mental health professional who meets the 
827.5 	qualifications under subdivision 2, must:
827.6 	(1) provide individualized peer support and individual recovery planning to each client;
827.7 	(2) promote a client's recovery goals, self-sufficiency, self-advocacy, and development 
827.8 	of natural supports; and
827.9 	(3) support a client's maintenance of skills that the client has learned from other services.
827.10 	(b) A licensed alcohol and drug counselor or mental health professional providing 
827.11 	supervision to a recovery peer must meet with the recovery peer face-to-face, either remotely 
827.12 	or in person, at least once per month in order to provide adequate supervision to the recovery 
827.13 	peer. Supervision must include reviewing individual recovery plans, as defined in section 
827.14 	254B.01, subdivision 4e, and reviewing documentation of peer recovery support services 
827.15 	provided for clients and may include client updates, discussion of ethical considerations, 
827.16 	and any other questions or issues relevant to peer recovery support services.

827.17 	Sec. 5. Minnesota Statutes 2022, section 254B.01, is amended by adding a subdivision to 
827.18 	read:
827.19 		Subd. 4e.Individual recovery plan. "Individual recovery plan" means a person-centered 
827.20 	outline of supports that an eligible vendor of peer recovery support services under section 
827.21 	254B.05, subdivision 1, must develop to respond to an individual's peer recovery support 
827.22 	services needs and goals.

827.23 	Sec. 6. Minnesota Statutes 2022, section 254B.01, is amended by adding a subdivision to 
827.24 	read:
827.25 		Subd. 8a.Recovery peer. "Recovery peer" means a person who is qualified according 
827.26 	to section 245I.04, subdivision 18, to provide peer recovery support services within the 
827.27 	scope of practice provided under section 245I.04, subdivision 19.

827.28 	Sec. 7. Minnesota Statutes 2023 Supplement, section 254B.05, subdivision 1, is amended 
827.29 	to read:
827.30 		Subdivision 1.Licensure or certification required. (a) Programs licensed by the 
827.31 	commissioner are eligible vendors. Hospitals may apply for and receive licenses to be 
828.1 	eligible vendors, notwithstanding the provisions of section 245A.03. American Indian 
828.2 	programs that provide substance use disorder treatment, extended care, transitional residence, 
828.3 	or outpatient treatment services, and are licensed by tribal government are eligible vendors.
828.4 	(b) A licensed professional in private practice as defined in section 245G.01, subdivision 
828.5 	17, who meets the requirements of section 245G.11, subdivisions 1 and 4, is an eligible 
828.6 	vendor of a comprehensive assessment and assessment summary provided according to 
828.7 	section 245G.05, and treatment services provided according to sections 245G.06 and 
828.8 	245G.07, subdivision 1, paragraphs (a), clauses (1) to (5), and (b); and subdivision 2, clauses 
828.9 	(1) to (6).
828.10 	(c) A county is an eligible vendor for a comprehensive assessment and assessment 
828.11 	summary when provided by an individual who meets the staffing credentials of section 
828.12 	245G.11, subdivisions 1 and 5, and completed according to the requirements of section 
828.13 	245G.05. A county is an eligible vendor of care coordination services when provided by an 
828.14 	individual who meets the staffing credentials of section 245G.11, subdivisions 1 and 7, and 
828.15 	provided according to the requirements of section 245G.07, subdivision 1, paragraph (a), 
828.16 	clause (5). A county is an eligible vendor of peer recovery services when the services are 
828.17 	provided by an individual who meets the requirements of section 245G.11, subdivision 8.
828.18 	(d) A recovery community organization that meets the requirements of clauses (1) to 
828.19 	(10) (12) and meets membership certification or accreditation requirements of the Association 
828.20 	of Recovery Community Organizations the Alliance for Recovery Centered Organizations, 
828.21 	the Council on Accreditation of Peer Recovery Support Services, or a Minnesota statewide 
828.22 	recovery community organization identified by the commissioner is an eligible vendor of 
828.23 	peer recovery support services. A Minnesota statewide recovery organization identified by 
828.24 	the commissioner must update recovery community organization applicants for certification 
828.25 	or accreditation on the status of the application within 45 days of receipt. If the approved 
828.26 	statewide recovery organization denies an application, it must provide a written explanation 
828.27 	for the denial to the recovery community organization. Eligible vendors under this paragraph 
828.28 	must:
828.29 	(1) be nonprofit organizations under section 501(c)(3) of the Internal Revenue Code, be 
828.30 	free from conflicting self-interests, and be autonomous in decision-making, program 
828.31 	development, peer recovery support services provided, and advocacy efforts for the purpose 
828.32 	of supporting the recovery community organization's mission;
829.1 	(2) be led and governed by individuals in the recovery community, with more than 50 
829.2 	percent of the board of directors or advisory board members self-identifying as people in 
829.3 	personal recovery from substance use disorders;
829.4 	(3) primarily focus on recovery from substance use disorders, with missions and visions 
829.5 	that support this primary focus have a mission statement and conduct corresponding activities 
829.6 	indicating that the organization's primary purpose is to support recovery from substance 
829.7 	use disorder;
829.8 	(4) be grassroots and reflective of and engaged with the community served demonstrate 
829.9 	ongoing community engagement with the identified primary region and population served 
829.10 	by the organization, including individuals in recovery and their families, friends, and recovery 
829.11 	allies;
829.12 	(5) be accountable to the recovery community through documented priority-setting and 
829.13 	participatory decision-making processes that promote the involvement and engagement of, 
829.14 	and consultation with, people in recovery and their families, friends, and recovery allies;
829.15 	(6) provide nonclinical peer recovery support services, including but not limited to 
829.16 	recovery support groups, recovery coaching, telephone recovery support, skill-building 
829.17 	groups, and harm-reduction activities, and provide recovery public education and advocacy;
829.18 	(7) have written policies that allow for and support opportunities for all paths toward 
829.19 	recovery and refrain from excluding anyone based on their chosen recovery path, which 
829.20 	may include but is not limited to harm reduction paths, faith-based paths, and nonfaith-based 
829.21 	paths;
829.22 	(8) be purposeful in meeting the diverse maintain organizational practices to meet the
829.23 	needs of Black, Indigenous, and people of color communities, including LGBTQ+ 
829.24 	communities, and other underrepresented or marginalized communities. Organizational 
829.25 	practices may include board and staff development activities, organizational practices
829.26 	training, service offerings, advocacy efforts, and culturally informed outreach and service 
829.27 	plans services;
829.28 	(9) be stewards of use recovery-friendly language in all media and written materials that 
829.29 	is supportive of and promotes recovery across diverse geographical and cultural contexts 
829.30 	and reduces stigma; and
829.31 	(10) establish and maintain an employee and volunteer a publicly available recovery 
829.32 	community organization code of ethics and easily accessible grievance policy and procedures 
829.33 	posted in physical spaces, on websites, or on program policies or forms.;
830.1 	(11) provide an orientation for recovery peers that includes an overview of the consumer 
830.2 	advocacy services provided by the Ombudsman for Mental Health and Developmental 
830.3 	Disabilities and other relevant advocacy services; and
830.4 	(12) provide notice to peer recovery support services participants that includes the 
830.5 	following statement: "If you have a complaint about the provider or the person providing 
830.6 	your peer recovery support services, you may contact the Minnesota Alliance of Recovery 
830.7 	Community Organizations. You may also contact the Office of Ombudsman for Mental 
830.8 	Health and Developmental Disabilities." The statement must also include:
830.9 	(i) the telephone number, website address, email address, and mailing address of the 
830.10 	Minnesota Alliance of Recovery Community Organizations and the Office of Ombudsman 
830.11 	for Mental Health and Developmental Disabilities;
830.12 	(ii) the recovery community organization's name, address, email, telephone number, and 
830.13 	name or title of the person at the recovery community organization to whom problems or 
830.14 	complaints may be directed; and
830.15 	(iii) a statement that the recovery community organization will not retaliate against a 
830.16 	peer recovery support services participant because of a complaint.
830.17 	(e) A recovery community organizations organization approved by the commissioner 
830.18 	before June 30, 2023, shall retain their designation as recovery community organizations
830.19 	must have begun the application process as required by an approved certifying or accrediting 
830.20 	entity and have begun the process to meet the requirements under paragraph (d) by September 
830.21 	1, 2024, in order to be considered as an eligible vendor of peer recovery support services.
830.22 	(f) A recovery community organization that is aggrieved by an accreditation, certification,
830.23 	or membership determination and believes it meets the requirements under paragraph (d) 
830.24 	may appeal the determination under section 256.045, subdivision 3, paragraph (a), clause 
830.25 	(15), for reconsideration as an eligible vendor. If the human services judge determines that 
830.26 	the recovery community organization meets the requirements under paragraph (d), the 
830.27 	recovery community organization is an eligible vendor of peer recovery support services.
830.28 	(g) Detoxification programs licensed under Minnesota Rules, parts 9530.6510 to 
830.29 	9530.6590, are not eligible vendors. Programs that are not licensed as a residential or 
830.30 	nonresidential substance use disorder treatment or withdrawal management program by the 
830.31 	commissioner or by tribal government or do not meet the requirements of subdivisions 1a 
830.32 	and 1b are not eligible vendors.
831.1 	(h) Hospitals, federally qualified health centers, and rural health clinics are eligible 
831.2 	vendors of a comprehensive assessment when the comprehensive assessment is completed 
831.3 	according to section 245G.05 and by an individual who meets the criteria of an alcohol and 
831.4 	drug counselor according to section 245G.11, subdivision 5. The alcohol and drug counselor 
831.5 	must be individually enrolled with the commissioner and reported on the claim as the 
831.6 	individual who provided the service.
831.7 	(i) Any complaints about a recovery community organization or peer recovery support 
831.8 	services may be made to and reviewed or investigated by the ombudsperson for behavioral 
831.9 	health and developmental disabilities under sections 245.91 and 245.94.

831.10 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
831.11 	the amendments adding paragraph (d), clauses (11) and (12), and paragraph (i) are effective 
831.12 	July 1, 2025.

831.13 	Sec. 8. Minnesota Statutes 2023 Supplement, section 254B.05, subdivision 5, as amended 
831.14 	by Laws 2024, chapter 85, section 59, is amended to read:
831.15 		Subd. 5.Rate requirements. (a) The commissioner shall establish rates for substance 
831.16 	use disorder services and service enhancements funded under this chapter.
831.17 	(b) Eligible substance use disorder treatment services include:
831.18 	(1) those licensed, as applicable, according to chapter 245G or applicable Tribal license 
831.19 	and provided according to the following ASAM levels of care:
831.20 	(i) ASAM level 0.5 early intervention services provided according to section 254B.19, 
831.21 	subdivision 1, clause (1);
831.22 	(ii) ASAM level 1.0 outpatient services provided according to section 254B.19, 
831.23 	subdivision 1, clause (2);
831.24 	(iii) ASAM level 2.1 intensive outpatient services provided according to section 254B.19, 
831.25 	subdivision 1, clause (3);
831.26 	(iv) ASAM level 2.5 partial hospitalization services provided according to section 
831.27 	254B.19, subdivision 1, clause (4);
831.28 	(v) ASAM level 3.1 clinically managed low-intensity residential services provided 
831.29 	according to section 254B.19, subdivision 1, clause (5);
831.30 	(vi) ASAM level 3.3 clinically managed population-specific high-intensity residential 
831.31 	services provided according to section 254B.19, subdivision 1, clause (6); and
832.1 	(vii) ASAM level 3.5 clinically managed high-intensity residential services provided 
832.2 	according to section 254B.19, subdivision 1, clause (7);
832.3 	(2) comprehensive assessments provided according to sections 245.4863, paragraph (a), 
832.4 	and 245G.05;
832.5 	(3) treatment coordination services provided according to section 245G.07, subdivision 
832.6 	1, paragraph (a), clause (5);
832.7 	(4) peer recovery support services provided according to section 245G.07, subdivision 
832.8 	2, clause (8);
832.9 	(5) withdrawal management services provided according to chapter 245F;
832.10 	(6) hospital-based treatment services that are licensed according to sections 245G.01 to 
832.11 	245G.17 or applicable tribal license and licensed as a hospital under sections 144.50 to 
832.12 	144.56;
832.13 	(7) adolescent treatment programs that are licensed as outpatient treatment programs 
832.14 	according to sections 245G.01 to 245G.18 or as residential treatment programs according 
832.15 	to Minnesota Rules, parts 2960.0010 to 2960.0220, and 2960.0430 to 2960.0490, or 
832.16 	applicable tribal license;
832.17 	(8) ASAM 3.5 clinically managed high-intensity residential services that are licensed 
832.18 	according to sections 245G.01 to 245G.17 and 245G.21 or applicable tribal license, which 
832.19 	provide ASAM level of care 3.5 according to section 254B.19, subdivision 1, clause (7), 
832.20 	and are provided by a state-operated vendor or to clients who have been civilly committed 
832.21 	to the commissioner, present the most complex and difficult care needs, and are a potential 
832.22 	threat to the community; and
832.23 	(9) room and board facilities that meet the requirements of subdivision 1a.
832.24 	(c) The commissioner shall establish higher rates for programs that meet the requirements 
832.25 	of paragraph (b) and one of the following additional requirements:
832.26 	(1) programs that serve parents with their children if the program:
832.27 	(i) provides on-site child care during the hours of treatment activity that:
832.28 	(A) is licensed under chapter 245A as a child care center under Minnesota Rules, chapter 
832.29 	9503; or
832.30 	(B) is licensed under chapter 245A and sections 245G.01 to 245G.19; or
833.1 	(ii) arranges for off-site child care during hours of treatment activity at a facility that is 
833.2 	licensed under chapter 245A as:
833.3 	(A) a child care center under Minnesota Rules, chapter 9503; or
833.4 	(B) a family child care home under Minnesota Rules, chapter 9502;
833.5 	(2) culturally specific or culturally responsive programs as defined in section 254B.01, 
833.6 	subdivision 4a;
833.7 	(3) disability responsive programs as defined in section 254B.01, subdivision 4b;
833.8 	(4) programs that offer medical services delivered by appropriately credentialed health 
833.9 	care staff in an amount equal to two hours per client per week if the medical needs of the 
833.10 	client and the nature and provision of any medical services provided are documented in the 
833.11 	client file; or
833.12 	(5) programs that offer services to individuals with co-occurring mental health and 
833.13 	substance use disorder problems if:
833.14 	(i) the program meets the co-occurring requirements in section 245G.20;
833.15 	(ii) 25 percent of the counseling staff are licensed mental health professionals under 
833.16 	section 245I.04, subdivision 2, or are students or licensing candidates under the supervision 
833.17 	of a licensed alcohol and drug counselor supervisor and mental health professional under 
833.18 	section 245I.04, subdivision 2, except that no more than 50 percent of the mental health 
833.19 	staff may be students or licensing candidates with time documented to be directly related 
833.20 	to provisions of co-occurring services;
833.21 	(iii) clients scoring positive on a standardized mental health screen receive a mental 
833.22 	health diagnostic assessment within ten days of admission;
833.23 	(iv) the program has standards for multidisciplinary case review that include a monthly 
833.24 	review for each client that, at a minimum, includes a licensed mental health professional 
833.25 	and licensed alcohol and drug counselor, and their involvement in the review is documented;
833.26 	(v) family education is offered that addresses mental health and substance use disorder 
833.27 	and the interaction between the two; and
833.28 	(vi) co-occurring counseling staff shall receive eight hours of co-occurring disorder 
833.29 	training annually.
833.30 	(d) In order to be eligible for a higher rate under paragraph (c), clause (1), a program 
833.31 	that provides arrangements for off-site child care must maintain current documentation at 
834.1 	the substance use disorder facility of the child care provider's current licensure to provide 
834.2 	child care services.
834.3 	(e) Adolescent residential programs that meet the requirements of Minnesota Rules, 
834.4 	parts 2960.0430 to 2960.0490 and 2960.0580 to 2960.0690, are exempt from the requirements 
834.5 	in paragraph (c), clause (5), items (i) to (iv).
834.6 	(f) Subject to federal approval, Substance use disorder services that are otherwise covered 
834.7 	as direct face-to-face services may be provided via telehealth as defined in section 256B.0625, 
834.8 	subdivision 3b. The use of telehealth to deliver services must be medically appropriate to 
834.9 	the condition and needs of the person being served. Reimbursement shall be at the same 
834.10 	rates and under the same conditions that would otherwise apply to direct face-to-face services.
834.11 	(g) For the purpose of reimbursement under this section, substance use disorder treatment 
834.12 	services provided in a group setting without a group participant maximum or maximum 
834.13 	client to staff ratio under chapter 245G shall not exceed a client to staff ratio of 48 to one. 
834.14 	At least one of the attending staff must meet the qualifications as established under this 
834.15 	chapter for the type of treatment service provided. A recovery peer may not be included as 
834.16 	part of the staff ratio.
834.17 	(h) Payment for outpatient substance use disorder services that are licensed according 
834.18 	to sections 245G.01 to 245G.17 is limited to six hours per day or 30 hours per week unless 
834.19 	prior authorization of a greater number of hours is obtained from the commissioner.
834.20 	(i) Payment for substance use disorder services under this section must start from the 
834.21 	day of service initiation, when the comprehensive assessment is completed within the 
834.22 	required timelines.
834.23 	(j) Eligible vendors of peer recovery support services must:
834.24 	(1) submit to a review by the commissioner of up to ten percent of all medical assistance 
834.25 	and behavioral health fund claims to determine the medical necessity of peer recovery 
834.26 	support services for entities billing for peer recovery support services individually and not 
834.27 	receiving a daily rate; and
834.28 	(2) limit an individual client to 14 hours per week for peer recovery support services 
834.29 	from an individual provider of peer recovery support services.
834.30 	(k) Peer recovery support services not provided in accordance with section 254B.052 
834.31 	are subject to monetary recovery under section 256B.064 as money improperly paid.

834.32 	EFFECTIVE DATE. This section is effective January 1, 2025.

835.1 	Sec. 9. [254B.052] PEER RECOVERY SUPPORT SERVICES REQUIREMENTS.
835.2 		Subdivision 1.Peer recovery support services; service requirements. (a) Peer recovery 
835.3 	support services are face-to-face interactions between a recovery peer and a client, on a 
835.4 	one-on-one basis, in which specific goals identified in an individual recovery plan, treatment 
835.5 	plan, or stabilization plan are discussed and addressed. Peer recovery support services are 
835.6 	provided to promote a client's recovery goals, self-sufficiency, self-advocacy, and 
835.7 	development of natural supports and to support maintenance of a client's recovery.
835.8 	(b) Peer recovery support services must be provided according to an individual recovery 
835.9 	plan if provided by a recovery community organization or county, a treatment plan if provided 
835.10 	in a substance use disorder treatment program under chapter 245G, or a stabilization plan 
835.11 	if provided by a withdrawal management program under chapter 245F.
835.12 	(c) A client receiving peer recovery support services must participate in the services 
835.13 	voluntarily. Any program that incorporates peer recovery support services must provide 
835.14 	written notice to the client that peer recovery support services will be provided.
835.15 	(d) Peer recovery support services may not be provided to a client residing with or 
835.16 	employed by a recovery peer from whom they receive services.
835.17 		Subd. 2.Individual recovery plan. (a) The individual recovery plan must be developed 
835.18 	with the client and must be completed within the first three sessions with a recovery peer.
835.19 	(b) The recovery peer must document how each session ties into the client's individual 
835.20 	recovery plan. The individual recovery plan must be updated as needed. The individual 
835.21 	recovery plan must include:
835.22 	(1) the client's name;
835.23 	(2) the recovery peer's name;
835.24 	(3) the name of the recovery peer's supervisor;
835.25 	(4) the client's recovery goals;
835.26 	(5) the client's resources and assets to support recovery;
835.27 	(6) activities that may support meeting identified goals; and
835.28 	(7) the planned frequency of peer recovery support services sessions between the recovery 
835.29 	peer and the client.
835.30 		Subd. 3.Eligible vendor documentation requirements. An eligible vendor of peer 
835.31 	recovery support services under section 254B.05, subdivision 1, must keep a secure file for 
836.1 	each individual receiving medical assistance peer recovery support services. The file must 
836.2 	include, at a minimum:
836.3 	(1) the client's comprehensive assessment under section 245G.05 that led to the client's 
836.4 	referral for peer recovery support services;
836.5 	(2) the client's individual recovery plan; and
836.6 	(3) documentation of each billed peer recovery support services interaction between the 
836.7 	client and the recovery peer, including the date, start and end time with a.m. and p.m. 
836.8 	designations, the client's response, and the name of the recovery peer who provided the 
836.9 	service.

836.10 	EFFECTIVE DATE. This section is effective January 1, 2025.

836.11 	Sec. 10. Minnesota Statutes 2023 Supplement, section 254B.19, subdivision 1, is amended 
836.12 	to read:
836.13 		Subdivision 1.Level of care requirements. (a) For each client assigned an ASAM level 
836.14 	of care, eligible vendors must implement the standards set by the ASAM for the respective 
836.15 	level of care. Additionally, vendors must meet the following requirements:
836.16 	(1) For ASAM level 0.5 early intervention targeting individuals who are at risk of 
836.17 	developing a substance-related problem but may not have a diagnosed substance use disorder, 
836.18 	early intervention services may include individual or group counseling, treatment 
836.19 	coordination, peer recovery support, screening brief intervention, and referral to treatment 
836.20 	provided according to section 254A.03, subdivision 3, paragraph (c).
836.21 	(2) For ASAM level 1.0 outpatient clients, adults must receive up to eight hours per 
836.22 	week of skilled treatment services and adolescents must receive up to five hours per week. 
836.23 	Services must be licensed according to section 245G.20 and meet requirements under section 
836.24 	256B.0759. Peer recovery and treatment coordination may be provided beyond the hourly 
836.25 	skilled treatment service hours allowable per week.
836.26 	(3) For ASAM level 2.1 intensive outpatient clients, adults must receive nine to 19 hours 
836.27 	per week of skilled treatment services and adolescents must receive six or more hours per 
836.28 	week. Vendors must be licensed according to section 245G.20 and must meet requirements 
836.29 	under section 256B.0759. Peer recovery services and treatment coordination may be provided 
836.30 	beyond the hourly skilled treatment service hours allowable per week. If clinically indicated 
836.31 	on the client's treatment plan, this service may be provided in conjunction with room and 
836.32 	board according to section 254B.05, subdivision 1a.
837.1 	(4) For ASAM level 2.5 partial hospitalization clients, adults must receive 20 hours or 
837.2 	more of skilled treatment services. Services must be licensed according to section 245G.20 
837.3 	and must meet requirements under section 256B.0759. Level 2.5 is for clients who need 
837.4 	daily monitoring in a structured setting, as directed by the individual treatment plan and in 
837.5 	accordance with the limitations in section 254B.05, subdivision 5, paragraph (h). If clinically 
837.6 	indicated on the client's treatment plan, this service may be provided in conjunction with 
837.7 	room and board according to section 254B.05, subdivision 1a.
837.8 	(5) For ASAM level 3.1 clinically managed low-intensity residential clients, programs 
837.9 	must provide at least 5 hours of skilled treatment services per week according to each client's 
837.10 	specific treatment schedule, as directed by the individual treatment plan. Programs must be 
837.11 	licensed according to section 245G.20 and must meet requirements under section 256B.0759.
837.12 	(6) For ASAM level 3.3 clinically managed population-specific high-intensity residential 
837.13 	clients, programs must be licensed according to section 245G.20 and must meet requirements 
837.14 	under section 256B.0759. Programs must have 24-hour staffing coverage. Programs must 
837.15 	be enrolled as a disability responsive program as described in section 254B.01, subdivision 
837.16 	4b, and must specialize in serving persons with a traumatic brain injury or a cognitive 
837.17 	impairment so significant, and the resulting level of impairment so great, that outpatient or 
837.18 	other levels of residential care would not be feasible or effective. Programs must provide, 
837.19 	at a minimum, daily skilled treatment services seven days a week according to each client's 
837.20 	specific treatment schedule, as directed by the individual treatment plan.
837.21 	(7) For ASAM level 3.5 clinically managed high-intensity residential clients, services 
837.22 	must be licensed according to section 245G.20 and must meet requirements under section 
837.23 	256B.0759. Programs must have 24-hour staffing coverage and provide, at a minimum, 
837.24 	daily skilled treatment services seven days a week according to each client's specific treatment 
837.25 	schedule, as directed by the individual treatment plan.
837.26 	(8) For ASAM level withdrawal management 3.2 clinically managed clients, withdrawal 
837.27 	management must be provided according to chapter 245F.
837.28 	(9) For ASAM level withdrawal management 3.7 medically monitored clients, withdrawal 
837.29 	management must be provided according to chapter 245F.
837.30 	(b) Notwithstanding the minimum daily skilled treatment service requirements under 
837.31 	paragraph (a), clauses (6) and (7), ASAM level 3.3 and 3.5 vendors must provide each client 
837.32 	at least 30 hours of treatment services per week for the period between January 1, 2024, 
837.33 	through June 30, 2024.

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

838.1 	Sec. 11. Minnesota Statutes 2023 Supplement, section 256.043, subdivision 3, is amended 
838.2 	to read:
838.3 		Subd. 3.Appropriations from registration and license fee account. (a) The 
838.4 	appropriations in paragraphs (b) to (n) shall be made from the registration and license fee 
838.5 	account on a fiscal year basis in the order specified.
838.6 	(b) The appropriations specified in Laws 2019, chapter 63, article 3, section 1, paragraphs 
838.7 	(b), (f), (g), and (h), as amended by Laws 2020, chapter 115, article 3, section 35, shall be 
838.8 	made accordingly.
838.9 	(c) $100,000 is appropriated to the commissioner of human services for grants for opiate 
838.10 	antagonist distribution. Grantees may utilize funds for opioid overdose prevention, 
838.11 	community asset mapping, education, and opiate antagonist distribution.
838.12 	(d) $2,000,000 is appropriated to the commissioner of human services for grants to Tribal 
838.13 	nations and five urban Indian communities for traditional healing practices for American 
838.14 	Indians and to increase the capacity of culturally specific providers in the behavioral health 
838.15 	workforce.
838.16 	(e) $400,000 is appropriated to the commissioner of human services for competitive 
838.17 	grants for opioid-focused Project ECHO programs.
838.18 	(f) $277,000 in fiscal year 2024 and $321,000 each year thereafter is appropriated to the 
838.19 	commissioner of human services to administer the funding distribution and reporting 
838.20 	requirements in paragraph (o).
838.21 	(g) $3,000,000 in fiscal year 2025 and $3,000,000 each year thereafter is appropriated 
838.22 	to the commissioner of human services for safe recovery sites start-up and capacity building 
838.23 	grants under section 254B.18.
838.24 	(h) $395,000 in fiscal year 2024 and $415,000 each year thereafter is appropriated to 
838.25 	the commissioner of human services for the opioid overdose surge alert system under section 
838.26 	245.891.
838.27 	(i) $300,000 is appropriated to the commissioner of management and budget for 
838.28 	evaluation activities under section 256.042, subdivision 1, paragraph (c).
838.29 	(j) $261,000 is appropriated to the commissioner of human services for the provision of 
838.30 	administrative services to the Opiate Epidemic Response Advisory Council and for the 
838.31 	administration of the grants awarded under paragraph (n).
839.1 	(k) $126,000 is appropriated to the Board of Pharmacy for the collection of the registration 
839.2 	fees under section 151.066.
839.3 	(l) $672,000 is appropriated to the commissioner of public safety for the Bureau of 
839.4 	Criminal Apprehension. Of this amount, $384,000 is for drug scientists and lab supplies 
839.5 	and $288,000 is for special agent positions focused on drug interdiction and drug trafficking.
839.6 	(m) After the appropriations in paragraphs (b) to (l) are made, 50 percent of the remaining 
839.7 	amount is appropriated to the commissioner of human services for distribution to county 
839.8 	social service agencies and Tribal social service agency initiative projects authorized under 
839.9 	section 256.01, subdivision 14b, to provide prevention and child protection services to 
839.10 	children and families who are affected by addiction. The commissioner shall distribute this 
839.11 	money proportionally to county social service agencies and Tribal social service agency 
839.12 	initiative projects through a formula based on intake data from the previous three calendar 
839.13 	years related to substance use and out-of-home placement episodes where parental drug 
839.14 	abuse is the primary a reason for the out-of-home placement using data from the previous 
839.15 	calendar year. County social service agencies and Tribal social service agency initiative 
839.16 	projects receiving funds from the opiate epidemic response fund must annually report to 
839.17 	the commissioner on how the funds were used to provide prevention and child protection 
839.18 	services, including measurable outcomes, as determined by the commissioner. County social 
839.19 	service agencies and Tribal social service agency initiative projects must not use funds 
839.20 	received under this paragraph to supplant current state or local funding received for child 
839.21 	protection services for children and families who are affected by addiction.
839.22 	(n) After the appropriations in paragraphs (b) to (m) are made, the remaining amount in 
839.23 	the account is appropriated to the commissioner of human services to award grants as 
839.24 	specified by the Opiate Epidemic Response Advisory Council in accordance with section 
839.25 	256.042, unless otherwise appropriated by the legislature.
839.26 	(o) Beginning in fiscal year 2022 and each year thereafter, funds for county social service 
839.27 	agencies and Tribal social service agency initiative projects under paragraph (m) and grant 
839.28 	funds specified by the Opiate Epidemic Response Advisory Council under paragraph (n) 
839.29 	may be distributed on a calendar year basis.
839.30 	(p) Notwithstanding section 16A.28, subdivision 3, funds appropriated in paragraphs 
839.31 	(c), (d), (e), (g), (m), and (n) are available for three years after the funds are appropriated.

840.1 	Sec. 12. [256B.0761] REENTRY DEMONSTRATION WAIVER.
840.2 		Subdivision 1.Establishment. The commissioner must submit a waiver application to 
840.3 	the Centers for Medicare and Medicaid Services to implement a medical assistance 
840.4 	demonstration project to provide health care and coordination services that bridge to 
840.5 	community-based services for individuals confined in state, local, or Tribal correctional 
840.6 	facilities, or facilities located outside of the seven-county metropolitan area that have an 
840.7 	inmate census with a significant proportion of Tribal members or American Indians, prior 
840.8 	to community reentry. The demonstration must be designed to:
840.9 	(1) increase continuity of coverage;
840.10 	(2) improve access to health care services, including mental health services, physical 
840.11 	health services, and substance use disorder treatment services;
840.12 	(3) enhance coordination between Medicaid systems, health and human services systems, 
840.13 	correctional systems, and community-based providers;
840.14 	(4) reduce overdoses and deaths following release;
840.15 	(5) decrease disparities in overdoses and deaths following release; and
840.16 	(6) maximize health and overall community reentry outcomes.
840.17 		Subd. 2.Eligible individuals. Notwithstanding section 256B.055, subdivision 14, 
840.18 	individuals are eligible to receive services under this demonstration if they are eligible under 
840.19 	section 256B.055, subdivision 3a, 6, 7, 7a, 9, 15, 16, or 17, as determined by the 
840.20 	commissioner in collaboration with correctional facilities, local governments, and Tribal 
840.21 	governments.
840.22 		Subd. 3.Eligible correctional facilities. (a) The commissioner's waiver application is 
840.23 	limited to:
840.24 	(1) three state correctional facilities to be determined by the commissioner of corrections, 
840.25 	one of which must be the Minnesota Correctional Facility-Shakopee;
840.26 	(2) two facilities for delinquent children and youth licensed under section 241.021, 
840.27 	subdivision 2, identified in coordination with the Minnesota Juvenile Detention Association 
840.28 	and the Minnesota Sheriffs' Association;
840.29 	(3) four correctional facilities for adults licensed under section 241.021, subdivision 1, 
840.30 	identified in coordination with the Minnesota Sheriffs' Association and the Association of 
840.31 	Minnesota Counties; and
841.1 	(4) one correctional facility owned and managed by a Tribal government or a facility 
841.2 	located outside of the seven-county metropolitan area that has an inmate census with a 
841.3 	significant proportion of Tribal members or American Indians.
841.4 	(b) Additional facilities may be added to the waiver contingent on legislative authorization 
841.5 	and appropriations.
841.6 		Subd. 4.Services and duration. (a) Services must be provided 90 days prior to an 
841.7 	individual's release date or, if an individual's confinement is less than 90 days, during the 
841.8 	time period between a medical assistance eligibility determination and the release to the 
841.9 	community.
841.10 	(b) Facilities must offer the following services using either community-based or 
841.11 	corrections-based providers:
841.12 	(1) case management activities to address physical and behavioral health needs, including 
841.13 	a comprehensive assessment of individual needs, development of a person-centered care 
841.14 	plan, referrals and other activities to address assessed needs, and monitoring and follow-up 
841.15 	activities;
841.16 	(2) drug coverage in accordance with section 256B.0625, subdivision 13, including up 
841.17 	to a 30-day supply of drugs upon release;
841.18 	(3) substance use disorder comprehensive assessments according section 254B.05, 
841.19 	subdivision 5, paragraph (b), clause (2);
841.20 	(4) treatment coordination services according to section 254B.05, subdivision 5, paragraph 
841.21 	(b), clause (3);
841.22 	(5) peer recovery support services according to sections 245I.04, subdivisions 18 and 
841.23 	19, and 254B.05, subdivision 5, paragraph (b), clause (4);
841.24 	(6) substance use disorder individual and group counseling provided according to sections 
841.25 	245G.07, subdivision 1, paragraph (a), clause (1), and 254B.05;
841.26 	(7) mental health diagnostic assessments as required under section 245I.10;
841.27 	(8) group and individual psychotherapy as required under section 256B.0671;
841.28 	(9) peer specialist services as required under sections 245I.04 and 256B.0615;
841.29 	(10) family planning and obstetrics and gynecology services; and
841.30 	(11) physical health well-being and screenings and care for adults and youth.
842.1 	(c) Services outlined in this subdivision must only be authorized when an individual 
842.2 	demonstrates medical necessity or other eligibility as required under this chapter or applicable 
842.3 	state and federal laws.
842.4 		Subd. 5.Provider requirements and standards. (a) Service providers must adhere to 
842.5 	applicable licensing and provider standards as required by federal guidance.
842.6 	(b) Service providers must be enrolled to provide services under Minnesota health care 
842.7 	programs.
842.8 	(c) Services must be provided by eligible providers employed by the correctional facility 
842.9 	or by eligible community providers under contract with the correctional facility.
842.10 	(d) The commissioner must determine whether each facility is ready to participate in 
842.11 	this demonstration based on a facility-submitted assessment of the facility's readiness to 
842.12 	implement:
842.13 	(1) prerelease medical assistance application and enrollment processes for inmates not 
842.14 	enrolled in medical assistance coverage;
842.15 	(2) the provision or facilitation of all required prerelease services for a period of up to 
842.16 	90 days prior to release;
842.17 	(3) coordination among county and Tribal human services agencies and all other entities 
842.18 	with a role in furnishing health care and supports to address health related social needs;
842.19 	(4) appropriate reentry planning, prerelease care management, and assistance with care 
842.20 	transitions to the community;
842.21 	(5) operational approaches to implementing certain Medicaid and CHIP requirements 
842.22 	including applications, suspensions, notices, fair hearings, and reasonable promptness for 
842.23 	coverage of services;
842.24 	(6) a data exchange process to support care coordination and transition activities; and
842.25 	(7) reporting of all requested data to the commissioner of human services to support 
842.26 	program monitoring, evaluation, oversight, and all financial data to meet reinvestment 
842.27 	requirements.
842.28 	(e) Participating facilities must detail reinvestment plans for all new federal Medicaid 
842.29 	money expended for reentry services that were previously the responsibility of each facility 
842.30 	and provide detailed financial reports to the commissioner.
843.1 		Subd. 6.Payment rates. (a) Payment rates for services under this section that are 
843.2 	approved under Minnesota's state plan agreement with the Centers for Medicare and Medicaid 
843.3 	Services are equal to current and applicable state law and federal requirements.
843.4 	(b) Case management payment rates are equal to rates authorized by the commissioner 
843.5 	for relocation targeted case management under section 256B.0621, subdivision 10.
843.6 	(c) Claims for covered drugs purchased through discount purchasing programs, such as 
843.7 	the Federal Supply Schedule of the United States General Services Administration or the 
843.8 	MMCAP Infuse program, must be no more than the actual acquisition cost plus the 
843.9 	professional dispensing fee in section 256B.0625, subdivision 13e. Drugs administered to 
843.10 	members must be billed on a professional claim in accordance with section 256B.0625, 
843.11 	subdivision 13e, paragraph (e), and submitted with the actual acquisition cost for the drug 
843.12 	on the claim line. Pharmacy claims must be submitted with the actual acquisition cost as 
843.13 	the ingredient cost field and the dispensing fee in section 256B.0625, subdivision 13e, as 
843.14 	the dispensing fee field on the claim with the basis of cost indicator of 08. Providers may 
843.15 	establish written protocols for establishing or calculating the facility's actual acquisition 
843.16 	drug cost based on a monthly, quarterly, or other average of the facility's actual acquisition 
843.17 	drug cost through the discount purchasing program. A written protocol must not include an 
843.18 	inflation, markup, spread, or margin to be added to the provider's actual purchase price after 
843.19 	subtracting all discounts.
843.20 		Subd. 7.Reentry services working group. (a) The commissioner of human services, 
843.21 	in collaboration with the commissioner of corrections, must convene a reentry services 
843.22 	working group to consider ways to improve the demonstration under this section and related 
843.23 	policies for justice-involved individuals.
843.24 	(b) The working group must be composed of balanced representation, including:
843.25 	(1) people with lived experience; and
843.26 	(2) representatives from:
843.27 	(i) community health care providers;
843.28 	(ii) the Minnesota Sheriffs' Association;
843.29 	(iii) the Minnesota Association for County Social Service Administrators;
843.30 	(iv) the Association of Minnesota Counties;
843.31 	(v) the Minnesota Juvenile Detention Association;
843.32 	(vi) the Office of Addiction and Recovery;
844.1 	(vii) NAMI Minnesota;
844.2 	(viii) the Minnesota Association of Resources for Recovery and Chemical Health;
844.3 	(ix) Tribal Nations; and
844.4 	(x) the Minnesota Alliance of Recovery Community Organizations.
844.5 	(c) The working group must:
844.6 	(1) advise on the waiver application, implementation, monitoring, evaluation, and 
844.7 	reinvestment plans;
844.8 	(2) recommend strategies to improve processes that ensure notifications of the individual's 
844.9 	release date, current location, postrelease location, and other relevant information are 
844.10 	provided to state, county, and Tribal eligibility systems and managed care organizations;
844.11 	(3) consider the value of expanding, replicating, or adapting the components of the 
844.12 	demonstration authorized under this section to additional populations;
844.13 	(4) consider information technology and other implementation needs for participating 
844.14 	correctional facilities; and
844.15 	(5) recommend ideas to fund expanded reentry services.

844.16 	EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval, 
844.17 	whichever is later, except subdivision 7 is effective July 1, 2024. The commissioner of 
844.18 	human services must notify the revisor of statutes when federal approval is obtained.

844.19 	Sec. 13. Minnesota Statutes 2022, section 256B.69, subdivision 4, is amended to read:
844.20 		Subd. 4.Limitation of choice. (a) The commissioner shall develop criteria to determine 
844.21 	when limitation of choice may be implemented in the experimental counties. The criteria 
844.22 	shall ensure that all eligible individuals in the county have continuing access to the full 
844.23 	range of medical assistance services as specified in subdivision 6.
844.24 	(b) The commissioner shall exempt the following persons from participation in the 
844.25 	project, in addition to those who do not meet the criteria for limitation of choice:
844.26 	(1) persons eligible for medical assistance according to section 256B.055, subdivision 
844.27 	1;
844.28 	(2) persons eligible for medical assistance due to blindness or disability as determined 
844.29 	by the Social Security Administration or the state medical review team, unless:
844.30 	(i) they are 65 years of age or older; or
845.1 	(ii) they reside in Itasca County or they reside in a county in which the commissioner 
845.2 	conducts a pilot project under a waiver granted pursuant to section 1115 of the Social 
845.3 	Security Act;
845.4 	(3) recipients who currently have private coverage through a health maintenance 
845.5 	organization;
845.6 	(4) recipients who are eligible for medical assistance by spending down excess income 
845.7 	for medical expenses other than the nursing facility per diem expense;
845.8 	(5) recipients who receive benefits under the Refugee Assistance Program, established 
845.9 	under United States Code, title 8, section 1522(e);
845.10 	(6) children who are both determined to be severely emotionally disturbed and receiving 
845.11 	case management services according to section 256B.0625, subdivision 20, except children 
845.12 	who are eligible for and who decline enrollment in an approved preferred integrated network 
845.13 	under section 245.4682;
845.14 	(7) adults who are both determined to be seriously and persistently mentally ill and 
845.15 	received case management services according to section 256B.0625, subdivision 20;
845.16 	(8) persons eligible for medical assistance according to section 256B.057, subdivision 
845.17 	10;
845.18 	(9) persons with access to cost-effective employer-sponsored private health insurance 
845.19 	or persons enrolled in a non-Medicare individual health plan determined to be cost-effective 
845.20 	according to section 256B.0625, subdivision 15; and
845.21 	(10) persons who are absent from the state for more than 30 consecutive days but still 
845.22 	deemed a resident of Minnesota, identified in accordance with section 256B.056, subdivision 
845.23 	1, paragraph (b).; and
845.24 	(11) persons who are enrolled in the reentry demonstration waiver under section 
845.25 	256B.0761.
845.26 	Children under age 21 who are in foster placement may enroll in the project on an elective 
845.27 	basis. Individuals excluded under clauses (1), (6), and (7) may choose to enroll on an elective 
845.28 	basis. The commissioner may enroll recipients in the prepaid medical assistance program 
845.29 	for seniors who are (1) age 65 and over, and (2) eligible for medical assistance by spending 
845.30 	down excess income.
846.1 	(c) The commissioner may allow persons with a one-month spenddown who are otherwise 
846.2 	eligible to enroll to voluntarily enroll or remain enrolled, if they elect to prepay their monthly 
846.3 	spenddown to the state.
846.4 	(d) The commissioner may require those individuals to enroll in the prepaid medical 
846.5 	assistance program who otherwise would have been excluded under paragraph (b), clauses 
846.6 	(1), (3), and (8), and under Minnesota Rules, part 9500.1452, subpart 2, items H, K, and L.
846.7 	(e) Before limitation of choice is implemented, eligible individuals shall be notified and 
846.8 	after notification, shall be allowed to choose only among demonstration providers. The 
846.9 	commissioner may assign an individual with private coverage through a health maintenance 
846.10 	organization, to the same health maintenance organization for medical assistance coverage, 
846.11 	if the health maintenance organization is under contract for medical assistance in the 
846.12 	individual's county of residence. After initially choosing a provider, the recipient is allowed 
846.13 	to change that choice only at specified times as allowed by the commissioner. If a 
846.14 	demonstration provider ends participation in the project for any reason, a recipient enrolled 
846.15 	with that provider must select a new provider but may change providers without cause once 
846.16 	more within the first 60 days after enrollment with the second provider.
846.17 	(f) An infant born to a woman who is eligible for and receiving medical assistance and 
846.18 	who is enrolled in the prepaid medical assistance program shall be retroactively enrolled to 
846.19 	the month of birth in the same managed care plan as the mother once the child is enrolled 
846.20 	in medical assistance unless the child is determined to be excluded from enrollment in a 
846.21 	prepaid plan under this section.

846.22 	EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval, 
846.23 	whichever is later. The commissioner of human services must notify the revisor of statutes 
846.24 	when federal approval is obtained.

846.25 	Sec. 14. Minnesota Statutes 2022, section 604A.04, subdivision 3, is amended to read:
846.26 		Subd. 3.Health care professionals; release from liability. (a) A licensed health care 
846.27 	professional who is permitted by law to prescribe an opiate antagonist, if acting in good 
846.28 	faith, may directly or by standing order prescribe, dispense, distribute, or administer an 
846.29 	opiate antagonist to a person without being subject to civil liability or criminal prosecution 
846.30 	for the act. This immunity applies even when the opiate antagonist is eventually administered 
846.31 	in either or both of the following instances: (1) by someone other than the person to whom 
846.32 	it is prescribed; or (2) to someone other than the person to whom it is prescribed.
847.1 	(b) A local unit of government, if acting in good faith, may distribute and administer an 
847.2 	opiate antagonist that is obtained pursuant to paragraph (a) without being subject to civil 
847.3 	liability or criminal prosecution for the act.

847.4 	Sec. 15. DIRECTION TO OMBUDSMAN FOR MENTAL HEALTH AND 
847.5 	DEVELOPMENTAL DISABILITIES.
 847.6 	By September 30, 2025, the ombudsman for mental health and developmental disabilities 
847.7 	must provide a report to the governor and the chairs and ranking minority members of the 
847.8 	legislative committees with jurisdiction over human services that contains summary 
847.9 	information on complaints received regarding peer recovery support services provided by 
847.10 	a recovery community organization as defined in Minnesota Statutes, section 254B.01, and 
847.11 	any recommendations to the legislature to improve the quality of peer recovery support 
847.12 	services, recovery peer worker misclassification, and peer recovery support services billing 
847.13 	codes and procedures.

847.14 	Sec. 16. PEER RECOVERY SUPPORT SERVICES AND RECOVERY 
847.15 	COMMUNITY ORGANIZATION WORKING GROUP.
 847.16 		Subdivision 1.Establishment; duties. The commissioner of human services must 
847.17 	convene a working group to develop recommendations on:
847.18 	(1) peer recovery support services billing rates and practices, including a billing model 
847.19 	for providing services to groups of up to four clients and groups larger than four clients at 
847.20 	one time;
847.21 	(2) acceptable activities to bill for peer recovery services, including group activities and 
847.22 	transportation related to individual recovery plans;
847.23 	(3) ways to address authorization for additional service hours and a review of the amount 
847.24 	of peer recovery support services clients may need;
847.25 	(4) improving recovery peer supervision and reimbursement for the costs of providing 
847.26 	recovery peer supervision for provider organizations;
847.27 	(5) certification or other regulation of recovery community organizations and recovery 
847.28 	peers; and
847.29 	(6) policy and statutory changes to improve access to peer recovery support services 
847.30 	and increase oversight of provider organizations.
848.1 		Subd. 2.Membership; meetings. (a) Members of the working group must include but 
848.2 	not be limited to:
848.3 	(1) a representative of the Minnesota Alliance of Recovery Community Organizations;
848.4 	(2) a representative of the Minnesota Association of Resources for Recovery and 
848.5 	Chemical Health;
848.6 	(3) representatives from at least three recovery community organizations who are eligible 
848.7 	vendors of peer recovery support services under Minnesota Statutes, section 254B.05, 
848.8 	subdivision 1;
848.9 	(4) at least two currently practicing recovery peers qualified under Minnesota Statutes, 
848.10 	section 245I.04, subdivision 18;
848.11 	(5) at least two individuals currently providing supervision for recovery peers according 
848.12 	to Minnesota Statutes, section 245I.04, subdivision 19;
848.13 	(6) the commissioner of human services or a designee;
848.14 	(7) a representative of county social services agencies; and
848.15 	(8) a representative of a Tribal social services agency.
848.16 	(b) Members of the working group may include a representative of the Alliance for 
848.17 	Recovery Centered Organizations and a representative of the Council on Accreditation of 
848.18 	Peer Recovery Support Services.
848.19 	(c) The commissioner of human services must make appointments to the working group 
848.20 	by October 1, 2024, and convene the first meeting of the working group by December 1, 
848.21 	2024.
848.22 	(d) The commissioner of human services must provide administrative support and meeting 
848.23 	space for the working group. The working group may conduct meetings remotely.
848.24 		Subd. 3.Report. The commissioner must complete and submit a report on the 
848.25 	recommendations in this section to the chairs and ranking minority members of the legislative 
848.26 	committees with jurisdiction over health and human services policy and finance on or before 
848.27 	August 1, 2025.
848.28 		Subd. 4.Expiration. The working group expires upon submission of the report to the 
848.29 	legislature under subdivision 3.

849.1 	Sec. 17. CAPACITY BUILDING AND IMPLEMENTATION GRANTS FOR THE 
849.2 	MEDICAL ASSISTANCE REENTRY DEMONSTRATION.
 849.3 	The commissioner of human services must establish capacity-building grants for eligible 
849.4 	local correctional facilities as they prepare to implement reentry demonstration services 
849.5 	under Minnesota Statutes, section 256B.0761. Allowable expenditures under this grant 
849.6 	include:
849.7 	(1) developing, in coordination with incarcerated individuals and community members 
849.8 	with lived experience, processes and protocols listed under Minnesota Statutes, section 
849.9 	256B.0761, subdivision 5, paragraph (d);
849.10 	(2) establishing or modifying information technology systems to support implementation 
849.11 	of the reentry demonstration waiver;
849.12 	(3) personnel costs; and
849.13 	(4) other expenses as determined by the commissioner.

849.14 	Sec. 18. 1115 WAIVER FOR MEDICAL ASSISTANCE REENTRY 
849.15 	DEMONSTRATION.
 849.16 	The commissioner of human services must submit an application to the United States 
849.17 	Secretary of Health and Human Services to implement a medical assistance reentry 
849.18 	demonstration that covers services for incarcerated individuals as described under Minnesota 
849.19 	Statutes, section 256B.0761. Coverage of prerelease services is contingent on federal approval 
849.20 	of the demonstration and the required implementation and reinvestment plans.

849.21 	Sec. 19. RESIDENTIAL SUBSTANCE USE DISORDER RATE INCREASE.
 849.22 	The commissioner of human services must increase rates for residential substance use 
849.23 	disorder services as authorized under Minnesota Statutes, section 254B.05, subdivision 5, 
849.24 	paragraph (a), by three percent for the 1115 demonstration base rates in effect as of January 
849.25 	1, 2024.

849.26 	EFFECTIVE DATE. This section is effective January 1, 2025, or upon federal approval, 
849.27 	whichever is later. The commissioner of human services must notify the revisor of statutes 
849.28 	when federal approval is obtained.

849.29 	Sec. 20. REPEALER.
 849.30 	Minnesota Statutes 2022, section 256.043, subdivision 4, is repealed.

850.1 	EFFECTIVE DATE. This section is effective July 1, 2024.

850.2 	ARTICLE 49
850.3 	PRIORITY ADMISSIONS AND CIVIL COMMITMENT

850.4 	Section 1. Minnesota Statutes 2022, section 245I.23, subdivision 19a, is amended to read:
850.5 		Subd. 19a.Additional requirements for locked program facility. (a) A license holder 
850.6 	that prohibits clients from leaving the facility by locking exit doors or other permissible 
850.7 	methods must meet the additional requirements of this subdivision.
850.8 	(b) The license holder must meet all applicable building and fire codes to operate a 
850.9 	building with locked exit doors. The license holder must have the appropriate license from 
850.10 	the Department of Health, as determined by the Department of Health, for operating a 
850.11 	program with locked exit doors.
850.12 	(c) The license holder's policies and procedures must clearly describe the types of court 
850.13 	orders that authorize the license holder to prohibit clients from leaving the facility.
850.14 	(d) (c) For each client present in the facility under a court order, the license holder must 
850.15 	maintain documentation of the court order for treatment authorizing the license holder to 
850.16 	prohibit the client from leaving the facility.
850.17 	(e) (d) Upon a client's admission to a locked program facility, the license holder must 
850.18 	document in the client file that the client was informed:
850.19 	(1) that the client has the right to leave the facility according to the client's rights under 
850.20 	section 144.651, subdivision 21, if the client is not subject to a court order authorizing the 
850.21 	license holder to prohibit the client from leaving the facility; or and that leaving the facility 
850.22 	against medical advice may result in legal consequences; and
850.23 	(2) that the client cannot may not be able to leave the facility due to a court order 
850.24 	authorizing the license holder to prohibit the client from leaving the facility as required 
850.25 	under chapter 253B.
850.26 	(f) (e) If the license holder prohibits a client from leaving the facility is prohibited from 
850.27 	leaving the facility under chapter 253B, the client's treatment plan must reflect this restriction.

851.1 	Sec. 2. Minnesota Statutes 2022, section 246.129, as amended by Laws 2024, chapter 79, 
851.2 	article 1, section 9, is amended to read:
851.3 	246.129 LEGISLATIVE APPROVAL REQUIRED.
851.4 	If the closure of a state-operated facility is proposed, and the executive board and 
851.5 	respective bargaining units fail to arrive at a mutually agreed upon solution to transfer 
851.6 	affected state employees to other state jobs, the closure of the facility requires legislative 
851.7 	approval. This does not apply to state-operated enterprise services.

851.8 	Sec. 3. Minnesota Statutes 2023 Supplement, section 246.54, subdivision 1a, is amended 
851.9 	to read:
851.10 		Subd. 1a.Anoka-Metro Regional Treatment Center. (a) A county's payment of the 
851.11 	cost of care provided at Anoka-Metro Regional Treatment Center shall be according to the 
851.12 	following schedule:
851.13 	(1) zero percent for the first 30 days;
851.14 	(2) 20 percent for days 31 and over if the stay is determined to be clinically appropriate 
851.15 	for the client; and
851.16 	(3) 100 percent for each day during the stay, including the day of admission, when the 
851.17 	facility determines that it is clinically appropriate for the client to be discharged.
851.18 	(b) If payments received by the state under sections 246.50 to 246.53 exceed 80 percent 
851.19 	of the cost of care for days over 31 for clients who meet the criteria in paragraph (a), clause 
851.20 	(2), the county shall be responsible for paying the state only the remaining amount. The 
851.21 	county shall not be entitled to reimbursement from the client, the client's estate, or from the 
851.22 	client's relatives, except as provided in section 246.53.
851.23 	(c) Between July 1, 2023, and June 30 March 31, 2025, the county is not responsible 
851.24 	for the cost of care under paragraph (a), clause (3), for a person who is committed as a 
851.25 	person who has a mental illness and is dangerous to the public under section 253B.18 and 
851.26 	who is awaiting transfer to another state-operated facility or program. This paragraph expires 
851.27 	June 30 March 31, 2025.
851.28 	(d) Between April 1, 2025, and June 30, 2025, the county is not responsible for the cost 
851.29 	of care under paragraph (a), clause (3), for a person who is civilly committed, if the client 
851.30 	is awaiting transfer:
851.31 	(1) to a facility operated by the Department of Corrections; or
852.1 	(2) to another state-operated facility or program, and the Direct Care and Treatment 
852.2 	executive medical director's office or a designee has determined that:
852.3 	(i) the client meets criteria for admission to that state-operated facility or program; and
852.4 	(ii) the state-operated facility or program is the only facility or program that can 
852.5 	reasonably serve the client. This paragraph expires June 30, 2025.
852.6 	(d) (e) Notwithstanding any law to the contrary, the client is not responsible for payment 
852.7 	of the cost of care under this subdivision.

852.8 	Sec. 4. Minnesota Statutes 2023 Supplement, section 246.54, subdivision 1b, is amended 
852.9 	to read:
852.10 		Subd. 1b.Community behavioral health hospitals. (a) A county's payment of the cost 
852.11 	of care provided at state-operated community-based behavioral health hospitals for adults 
852.12 	and children shall be according to the following schedule:
852.13 	(1) 100 percent for each day during the stay, including the day of admission, when the 
852.14 	facility determines that it is clinically appropriate for the client to be discharged; and
852.15 	(2) the county shall not be entitled to reimbursement from the client, the client's estate, 
852.16 	or from the client's relatives, except as provided in section 246.53.
852.17 	(b) Between July 1, 2023, and June 30 March 31, 2025, the county is not responsible 
852.18 	for the cost of care under paragraph (a), clause (1), for a person committed as a person who 
852.19 	has a mental illness and is dangerous to the public under section 253B.18 and who is awaiting 
852.20 	transfer to another state-operated facility or program. This paragraph expires June 30 March 
852.21 	31, 2025.
852.22 	(c) Between April 1, 2025, and June 30, 2025, the county is not responsible for the cost 
852.23 	of care under paragraph (a), clause (1), for a person who is civilly committed, if the client 
852.24 	is awaiting transfer:
852.25 	(1) to a facility operated by the Department of Corrections; or
852.26 	(2) to another state-operated facility or program, and the Direct Care and Treatment 
852.27 	executive medical director's office or a designee has determined that:
852.28 	(i) the client meets criteria for admission to that state-operated facility or program; and
852.29 	(ii) the state-operated facility or program is the only facility or program that can 
852.30 	reasonably serve the client. This paragraph expires June 30, 2025.
853.1 	(c) (d) Notwithstanding any law to the contrary, the client is not responsible for payment 
853.2 	of the cost of care under this subdivision.

853.3 	Sec. 5. Minnesota Statutes 2023 Supplement, section 253B.10, subdivision 1, as amended 
853.4 	by Laws 2024, chapter 79, article 5, section 8, is amended to read:
853.5 		Subdivision 1.Administrative requirements. (a) When a person is committed, the 
853.6 	court shall issue a warrant or an order committing the patient to the custody of the head of 
853.7 	the treatment facility, state-operated treatment program, or community-based treatment 
853.8 	program. The warrant or order shall state that the patient meets the statutory criteria for 
853.9 	civil commitment.
853.10 	(b) The executive board shall prioritize civilly committed patients being admitted from 
853.11 	jail or a correctional institution or who are referred to a state-operated treatment facility for 
853.12 	competency attainment or a competency examination under sections 611.40 to 611.59 for 
853.13 	admission to a medically appropriate state-operated direct care and treatment bed based on 
853.14 	the decisions of physicians in the executive medical director's office, using a priority 
853.15 	admissions framework. The framework must account for a range of factors for priority 
853.16 	admission, including but not limited to:
853.17 	(1) ordered confined in a state-operated treatment program for an examination under 
853.18 	Minnesota Rules of Criminal Procedure, rules 20.01, subdivision 4, paragraph (a), and 
853.19 	20.02, subdivision 2 the length of time the person has been on a waiting list for admission 
853.20 	to a state-operated direct care and treatment program since the date of the order under 
853.21 	paragraph (a), or the date of an order issued under sections 611.40 to 611.59;
853.22 	(2) under civil commitment for competency treatment and continuing supervision under 
853.23 	Minnesota Rules of Criminal Procedure, rule 20.01, subdivision 7 the intensity of the 
853.24 	treatment the person needs, based on medical acuity;
853.25 	(3) found not guilty by reason of mental illness under Minnesota Rules of Criminal 
853.26 	Procedure, rule 20.02, subdivision 8, and under civil commitment or are ordered to be 
853.27 	detained in a state-operated treatment program pending completion of the civil commitment 
853.28 	proceedings; or the person's revoked provisional discharge status;
853.29 	(4) committed under this chapter to the executive board after dismissal of the patient's 
853.30 	criminal charges. the person's safety and safety of others in the person's current environment;
853.31 	(5) whether the person has access to necessary or court-ordered treatment;
853.32 	(6) distinct and articulable negative impacts of an admission delay on the facility referring 
853.33 	the individual for treatment; and
854.1 	(7) any relevant federal prioritization requirements.
854.2 	Patients described in this paragraph must be admitted to a state-operated treatment program 
854.3 	within 48 hours. The commitment must be ordered by the court as provided in section 
854.4 	253B.09, subdivision 1, paragraph (d). Patients committed to a secure treatment facility or 
854.5 	less restrictive setting as ordered by the court under section 253B.18, subdivisions 1 and 2, 
854.6 	must be prioritized for admission to a state-operated treatment program using the priority 
854.7 	admissions framework in this paragraph.
854.8 	(c) Upon the arrival of a patient at the designated treatment facility, state-operated 
854.9 	treatment program, or community-based treatment program, the head of the facility or 
854.10 	program shall retain the duplicate of the warrant and endorse receipt upon the original 
854.11 	warrant or acknowledge receipt of the order. The endorsed receipt or acknowledgment must 
854.12 	be filed in the court of commitment. After arrival, the patient shall be under the control and 
854.13 	custody of the head of the facility or program.
854.14 	(d) Copies of the petition for commitment, the court's findings of fact and conclusions 
854.15 	of law, the court order committing the patient, the report of the court examiners, and the 
854.16 	prepetition report, and any medical and behavioral information available shall be provided 
854.17 	at the time of admission of a patient to the designated treatment facility or program to which 
854.18 	the patient is committed. Upon a patient's referral to the executive board for admission 
854.19 	pursuant to subdivision 1, paragraph (b), any inpatient hospital, treatment facility, jail, or 
854.20 	correctional facility that has provided care or supervision to the patient in the previous two 
854.21 	years shall, when requested by the treatment facility or commissioner, provide copies of 
854.22 	the patient's medical and behavioral records to the executive board for purposes of 
854.23 	preadmission planning. This information shall be provided by the head of the treatment 
854.24 	facility to treatment facility staff in a consistent and timely manner and pursuant to all 
854.25 	applicable laws.
854.26 	(e) Patients described in paragraph (b) must be admitted to a state-operated treatment 
854.27 	program within 48 hours of the Office of Executive Medical Director, under section 246C.09, 
854.28 	or a designee determining that a medically appropriate bed is available. This paragraph 
854.29 	expires on June 30, 2025.
854.30 	(f) Within four business days of determining which state-operated direct care and 
854.31 	treatment program or programs are appropriate for an individual, the executive medical 
854.32 	director's office or a designee must notify the source of the referral and the responsible 
854.33 	county human services agency, the individual being ordered to direct care and treatment, 
854.34 	and the district court that issued the order of the determination. The notice shall include 
855.1 	which program or programs are appropriate for the person's priority status. Any interested 
855.2 	person may provide additional information or request updated priority status about the 
855.3 	individual to the executive medical director's office or a designee while the individual is 
855.4 	awaiting admission. Updated priority status of an individual will only be disclosed to 
855.5 	interested persons who are legally authorized to receive private information about the 
855.6 	individual. When an available bed has been identified, the executive medical director's 
855.7 	office or a designee must notify the designated agency and the facility where the individual 
855.8 	is awaiting admission that the individual has been accepted for admission to a particular 
855.9 	state-operated direct care and treatment program and the earliest possible date the admission 
855.10 	can occur. The designated agency or facility where the individual is awaiting admission 
855.11 	must transport the individual to the admitting state-operated direct care and treatment 
855.12 	program no more than 48 hours after the offered admission date.

855.13 	EFFECTIVE DATE. This section is effective July 1, 2024.

855.14 	Sec. 6. Minnesota Statutes 2023 Supplement, section 256B.0622, subdivision 8, is amended 
855.15 	to read:
855.16 		Subd. 8.Medical assistance payment for assertive community treatment and 
855.17 	intensive residential treatment services. (a) Payment for intensive residential treatment 
855.18 	services and assertive community treatment in this section shall be based on one daily rate 
855.19 	per provider inclusive of the following services received by an eligible client in a given 
855.20 	calendar day: all rehabilitative services under this section, staff travel time to provide 
855.21 	rehabilitative services under this section, and nonresidential crisis stabilization services 
855.22 	under section 256B.0624.
855.23 	(b) Except as indicated in paragraph (c) (d), payment will not be made to more than one 
855.24 	entity for each client for services provided under this section on a given day. If services 
855.25 	under this section are provided by a team that includes staff from more than one entity, the 
855.26 	team must determine how to distribute the payment among the members.
855.27 	(c) Payment must not be made based solely on a court order to participate in intensive 
855.28 	residential treatment services. If a client has a court order to participate in the program or 
855.29 	to obtain assessment for treatment and follow treatment recommendations, payment under 
855.30 	this section must only be provided if the client is eligible for the service and the service is 
855.31 	determined to be medically necessary.
855.32 	(c) (d) The commissioner shall determine one rate for each provider that will bill medical 
855.33 	assistance for residential services under this section and one rate for each assertive community 
855.34 	treatment provider. If a single entity provides both services, one rate is established for the 
856.1 	entity's residential services and another rate for the entity's nonresidential services under 
856.2 	this section. A provider is not eligible for payment under this section without authorization 
856.3 	from the commissioner. The commissioner shall develop rates using the following criteria:
856.4 	(1) the provider's cost for services shall include direct services costs, other program 
856.5 	costs, and other costs determined as follows:
856.6 	(i) the direct services costs must be determined using actual costs of salaries, benefits, 
856.7 	payroll taxes, and training of direct service staff and service-related transportation;
856.8 	(ii) other program costs not included in item (i) must be determined as a specified 
856.9 	percentage of the direct services costs as determined by item (i). The percentage used shall 
856.10 	be determined by the commissioner based upon the average of percentages that represent 
856.11 	the relationship of other program costs to direct services costs among the entities that provide 
856.12 	similar services;
856.13 	(iii) physical plant costs calculated based on the percentage of space within the program 
856.14 	that is entirely devoted to treatment and programming. This does not include administrative 
856.15 	or residential space;
856.16 	(iv) assertive community treatment physical plant costs must be reimbursed as part of 
856.17 	the costs described in item (ii); and
856.18 	(v) subject to federal approval, up to an additional five percent of the total rate may be 
856.19 	added to the program rate as a quality incentive based upon the entity meeting performance 
856.20 	criteria specified by the commissioner;
856.21 	(2) actual cost is defined as costs which are allowable, allocable, and reasonable, and 
856.22 	consistent with federal reimbursement requirements under Code of Federal Regulations, 
856.23 	title 48, chapter 1, part 31, relating to for-profit entities, and Office of Management and 
856.24 	Budget Circular Number A-122, relating to nonprofit entities;
856.25 	(3) the number of service units;
856.26 	(4) the degree to which clients will receive services other than services under this section; 
856.27 	and
856.28 	(5) the costs of other services that will be separately reimbursed.
856.29 	(d) (e) The rate for intensive residential treatment services and assertive community 
856.30 	treatment must exclude the medical assistance room and board rate, as defined in section 
856.31 	256B.056, subdivision 5d, and services not covered under this section, such as partial 
856.32 	hospitalization, home care, and inpatient services.
857.1 	(e) (f) Physician services that are not separately billed may be included in the rate to the 
857.2 	extent that a psychiatrist, or other health care professional providing physician services 
857.3 	within their scope of practice, is a member of the intensive residential treatment services 
857.4 	treatment team. Physician services, whether billed separately or included in the rate, may 
857.5 	be delivered by telehealth. For purposes of this paragraph, "telehealth" has the meaning 
857.6 	given to "mental health telehealth" in section 256B.0625, subdivision 46, when telehealth 
857.7 	is used to provide intensive residential treatment services.
857.8 	(f) (g) When services under this section are provided by an assertive community treatment 
857.9 	provider, case management functions must be an integral part of the team.
857.10 	(g) (h) The rate for a provider must not exceed the rate charged by that provider for the 
857.11 	same service to other payors.
857.12 	(h) (i) The rates for existing programs must be established prospectively based upon the 
857.13 	expenditures and utilization over a prior 12-month period using the criteria established in 
857.14 	paragraph (c) (d). The rates for new programs must be established based upon estimated 
857.15 	expenditures and estimated utilization using the criteria established in paragraph (c) (d).
857.16 	(i) (j) Effective for the rate years beginning on and after January 1, 2024, rates for 
857.17 	assertive community treatment, adult residential crisis stabilization services, and intensive 
857.18 	residential treatment services must be annually adjusted for inflation using the Centers for 
857.19 	Medicare and Medicaid Services Medicare Economic Index, as forecasted in the fourth 
857.20 	quarter of the calendar year before the rate year. The inflation adjustment must be based on 
857.21 	the 12-month period from the midpoint of the previous rate year to the midpoint of the rate 
857.22 	year for which the rate is being determined.
857.23 	(j) (k) Entities who discontinue providing services must be subject to a settle-up process 
857.24 	whereby actual costs and reimbursement for the previous 12 months are compared. In the 
857.25 	event that the entity was paid more than the entity's actual costs plus any applicable 
857.26 	performance-related funding due the provider, the excess payment must be reimbursed to 
857.27 	the department. If a provider's revenue is less than actual allowed costs due to lower 
857.28 	utilization than projected, the commissioner may reimburse the provider to recover its actual 
857.29 	allowable costs. The resulting adjustments by the commissioner must be proportional to the 
857.30 	percent of total units of service reimbursed by the commissioner and must reflect a difference 
857.31 	of greater than five percent.
857.32 	(k) (l) A provider may request of the commissioner a review of any rate-setting decision 
857.33 	made under this subdivision.

858.1 	Sec. 7. PRIORITY ADMISSIONS REVIEW PANEL.
 858.2 	(a) A panel appointed by the commissioner of human services, consisting of all members 
858.3 	who served on the Task Force on Priority Admissions to State-Operated Treatment Programs 
858.4 	under Laws 2023, chapter 61, article 8, section 13, subdivision 2, and one member who has 
858.5 	an active role as a union representative representing staff at Direct Care and Treatment 
858.6 	appointed by joint representatives of the American Federation of State, County and Municipal 
858.7 	Employees (AFSCME); Minnesota Association of Professional Employees (MAPE); 
858.8 	Minnesota Nurses Association (MNA); Middle Management Association (MMA); and State 
858.9 	Residential Schools Education Association (SRSEA) must:
858.10 	(1) evaluate the 48-hour timeline for priority admissions required under Minnesota 
858.11 	Statutes, section 253B.10, subdivision 1, paragraph (b), and develop policy and legislative 
858.12 	proposals related to the priority admissions timeline in order to minimize litigation costs, 
858.13 	maximize capacity in and access to state-operated treatment programs, and address issues 
858.14 	related to individuals awaiting admission to state-operated treatment programs in jails and 
858.15 	correctional institutions; and
858.16 	(2) by February 1, 2025, submit a written report to the chairs and ranking minority 
858.17 	members of the legislative committees with jurisdiction over public safety and human 
858.18 	services that includes legislative proposals to amend Minnesota Statutes, section 253B.10, 
858.19 	subdivision 1, paragraph (b), to modify the 48-hour priority admissions timeline.
858.20 	(b) The panel appointed under paragraph (a) must also advise the commissioner on the 
858.21 	effectiveness of the framework and priority admissions generally and review de-identified 
858.22 	data quarterly for one year following the implementation of the priority admissions 
858.23 	framework to ensure that the framework is implemented and applied equitably. If the panel 
858.24 	requests to review data that are classified as private or confidential and the commissioner 
858.25 	determines that the data requested are necessary for the scope of the panel's review, the 
858.26 	commissioner is authorized to disclose private or confidential data to the panel under this 
858.27 	paragraph and pursuant to Minnesota Statutes, section 13.05, subdivision 4, paragraph (b), 
858.28 	for private or confidential data collected prior to the effective date of this section.
858.29 	(c) After the panel completes one year of review, a quality committee established by the 
858.30 	Direct Care and Treatment executive board must continue to review data; seek input from 
858.31 	counties, hospitals, community providers, and advocates; and provide a routine report to 
858.32 	the executive board on the effectiveness of the framework and priority admissions.

858.33 	EFFECTIVE DATE. This section is effective July 1, 2024.

859.1 	Sec. 8. DIRECTION TO COMMISSIONER OF HUMAN SERVICES; 
859.2 	REIMBURSEMENT TO BELTRAMI COUNTY AND TODD COUNTY FOR 
859.3 	CERTAIN COST OF CARE PAYMENTS.
 859.4 	(a) Notwithstanding Minnesota Statutes 2021 Supplement, section 246.54, subdivisions 
859.5 	1a and 1b; Minnesota Statutes 2022, section 246.54, subdivisions 1a and 1b; or any other 
859.6 	law to the contrary, the commissioner of human services must not sanction or otherwise 
859.7 	seek payment from Beltrami County for outstanding debts for the cost of care provided 
859.8 	between July 1, 2022, and June 30, 2023, under:
859.9 	(1) Minnesota Statutes, section 246.54, subdivision 1a, paragraph (a), clause (3), to a 
859.10 	person committed as a person who has a mental illness and is dangerous to the public under 
859.11 	Minnesota Statutes, section 253B.18, and who was awaiting transfer from Anoka-Metro 
859.12 	Regional Treatment Center to another state-operated facility or program; or
859.13 	(2) Minnesota Statutes, section 246.54, subdivision 1b, paragraph (a), clause (1), to a 
859.14 	person committed as a person who has a mental illness and is dangerous to the public under 
859.15 	Minnesota Statutes, section 253B.18, and who was awaiting transfer from a state-operated 
859.16 	community-based behavioral health hospital to another state-operated facility or program.
859.17 	(b) Notwithstanding Minnesota Statutes 2021 Supplement, section 246.54, subdivision 
859.18 	1a; Minnesota Statutes 2022, section 246.54, subdivision 1a; or any other law to the contrary, 
859.19 	the commissioner of human services must not sanction or otherwise seek payment from 
859.20 	Todd County for outstanding debts for the cost of care provided in Anoka-Metro Regional 
859.21 	Treatment Center from August 22, 2023, to February 3, 2024, not to exceed $387,000.
859.22 	(c) The commissioner must reimburse Beltrami County and Todd County with state-only 
859.23 	money any amount previously paid to the state or otherwise recovered by the commissioner 
859.24 	from Beltrami County or Todd County for the cost of care identified in paragraphs (a) and 
859.25 	(b).
859.26 	(d) Nothing in this section prohibits the commissioner from seeking reimbursement from 
859.27 	Beltrami County for the cost of care provided in Anoka-Metro Regional Treatment Center 
859.28 	or a state-operated community-based behavioral health hospital for care not described in 
859.29 	paragraph (a).
859.30 	(e) Nothing in this section prohibits the commissioner of human services from seeking 
859.31 	reimbursement from Todd County for the cost of care provided in Anoka-Metro Regional 
859.32 	Treatment Center or by any state-operated facility or program in excess of the amount 
859.33 	specified in paragraph (b).
860.1 	(f) Notwithstanding any law to the contrary, the client is not responsible for payment of 
860.2 	the cost of care under this section.

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

860.4 	Sec. 9. MENTALLY ILL AND DANGEROUS CIVIL COMMITMENT REFORM 
860.5 	TASK FORCE.
 860.6 		Subdivision 1.Establishment; purpose. The Mentally Ill and Dangerous Civil 
860.7 	Commitment Reform Task Force is established to evaluate current statutes related to mentally 
860.8 	ill and dangerous civil commitments and develop recommendations to optimize the use of 
860.9 	state-operated mental health resources and increase equitable access and outcomes for 
860.10 	patients.
860.11 		Subd. 2.Membership. (a) The Mentally Ill and Dangerous Civil Commitment Reform 
860.12 	Task Force consists of the members appointed as follows:
860.13 	(1) the commissioner of human services or a designee;
860.14 	(2) two members representing the Department of Direct Care and Treatment who have 
860.15 	experience with mentally ill and dangerous civil commitments, appointed by the 
860.16 	commissioner of human services;
860.17 	(3) the ombudsman for mental health and developmental disabilities;
860.18 	(4) a judge with experience presiding over mentally ill and dangerous civil commitments, 
860.19 	appointed by the state court administrator;
860.20 	(5) a court examiner with experience participating in mentally ill and dangerous civil 
860.21 	commitments, appointed by the state court administrator;
860.22 	(6) a member of the Special Review Board, appointed by the state court administrator;
860.23 	(7) a county representative, appointed by the Association of Minnesota Counties;
860.24 	(8) a representative appointed by the Minnesota Association of County Social Service 
860.25 	Administrators;
860.26 	(9) a county attorney with experience participating in mentally ill and dangerous civil 
860.27 	commitments, appointed by the Minnesota County Attorneys Association;
860.28 	(10) an attorney with experience representing respondents in mentally ill and dangerous 
860.29 	civil commitments, appointed by the governor;
860.30 	(11) a member appointed by the Minnesota Association of Community Mental Health 
860.31 	Programs;
861.1 	(12) a member appointed by the National Alliance on Mental Illness Minnesota;
861.2 	(13) a licensed independent practitioner with experience treating individuals subject to 
861.3 	a mentally ill and dangerous civil commitment;
861.4 	(14) an individual with lived experience under civil commitment as mentally ill and 
861.5 	dangerous and who is on a provisional discharge or has been discharged from commitment;
861.6 	(15) a family member of an individual with lived experience under civil commitment 
861.7 	as mentally ill and dangerous and who is on a provisional discharge or has been discharged 
861.8 	from commitment;
861.9 	(16) at least one Tribal government representative; and
861.10 	(17) a member appointed by the Minnesota Disability Law Center.
861.11 	(b) A member of the legislature may not serve as a member of the task force.
861.12 	(c) Appointments to the task force must be made no later than July 30, 2024.
861.13 		Subd. 3.Compensation; removal; vacancy. (a) Notwithstanding Minnesota Statutes, 
861.14 	section 15.059, subdivision 6, members of the task force may be compensated as provided 
861.15 	under Minnesota Statutes, section 15.059, subdivision 3.
861.16 	(b) A member may be removed by the appointing authority at any time at the pleasure 
861.17 	of the appointing authority. In the case of a vacancy on the task force, the appointing authority 
861.18 	shall appoint an individual to fill the vacancy for the remainder of the unexpired term.
861.19 		Subd. 4.Officers; meetings. (a) The commissioner of human services shall convene 
861.20 	the first meeting of the task force no later than September 1, 2024.
861.21 	(b) The task force must elect a chair and vice-chair from among its members and may 
861.22 	elect other officers as necessary.
861.23 	(c) The task force is subject to Minnesota Statutes, chapter 13D.
861.24 		Subd. 5.Staff. The commissioner of human services must provide staff assistance to 
861.25 	support the work of the task force.
861.26 		Subd. 6.Data usage and privacy. Any data provided by executive agencies as part of 
861.27 	the work and report of the task force are subject to the requirements of Minnesota Statutes, 
861.28 	chapter 13, and all other applicable data privacy laws.
861.29 		Subd. 7.Duties. The task force must:
862.1 	(1) analyze current trends in mentally ill and dangerous civil commitments, including 
862.2 	but not limited to the length of stay for individuals committed in Minnesota as compared 
862.3 	to other jurisdictions;
862.4 	(2) review national practices and criteria for civil commitment of individuals who have 
862.5 	a mental illness and represent a danger to the public;
862.6 	(3) develop recommended statutory changes necessary to provide services to the high 
862.7 	number of mentally ill and dangerous civilly committed individuals;
862.8 	(4) develop funding and statutory recommendations for alternatives to the current mentally 
862.9 	ill and dangerous civil commitment process;
862.10 	(5) identify what types of placements and services are necessary to serve individuals 
862.11 	civilly committed as mentally ill and dangerous in the community;
862.12 	(6) make recommendations to reduce barriers to discharge from the forensic mental 
862.13 	health program for individuals civilly committed as mentally ill and dangerous;
862.14 	(7) develop recommended plain language statutory changes to clarify operational 
862.15 	definitions for terms used within Minnesota Statutes, section 253B.18;
862.16 	(8) develop recommended statutory changes to provide clear direction to the 
862.17 	commissioner of human services and facilities to which individuals are civilly committed 
862.18 	to address situations in which an individual is committed as mentally ill and dangerous and 
862.19 	is later determined to not have an organic disorder of the brain or a substantial psychiatric 
862.20 	disorder of thought, mood, perception, orientation, or memory; and
862.21 	(9) evaluate and make statutory and funding recommendations for the voluntary return 
862.22 	of individuals civilly committed as mentally ill and dangerous to community facilities.
862.23 		Subd. 8.Report required. By August 1, 2025, the task force shall submit to the chairs 
862.24 	and ranking minority members of the legislative committees with jurisdiction over mentally 
862.25 	ill and dangerous civil commitments a written report that includes the outcome of the duties 
862.26 	in subdivision 7, including but not limited to recommended statutory changes.
862.27 		Subd. 9.Expiration. The task force expires January 1, 2026.

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

862.29 	Sec. 10. ENGAGEMENT SERVICES PILOT GRANTS.
862.30 		Subdivision 1.Creation. The engagement services pilot grant program is established 
862.31 	in the Department of Human Services to provide grants to counties or certified community 
863.1 	behavioral health clinics under section 245.735 that have a letter of support from a county 
863.2 	to provide engagement services under section 253B.041. The commissioner of human 
863.3 	services must award one grant under this section to Otter Tail County. Engagement services 
863.4 	must provide culturally responsive early interventions to prevent an individual from meeting 
863.5 	the criteria for civil commitment and promote positive outcomes.
863.6 		Subd. 2.Allowable grant activities. (a) Grantees must use grant money to:
863.7 	(1) develop a system to respond to requests for engagement services;
863.8 	(2) provide the following engagement services, taking into account an individual's 
863.9 	preferences for treatment services and supports:
863.10 	(i) assertive attempts to engage an individual in voluntary treatment for mental illness 
863.11 	for at least 90 days;
863.12 	(ii) efforts to engage an individual's existing support systems and interested persons, 
863.13 	including but not limited to providing education on restricting means of harm and suicide 
863.14 	prevention, when the provider determines that such engagement would be helpful; and
863.15 	(iii) collaboration with the individual to meet the individual's immediate needs, including 
863.16 	but not limited to housing access, food and income assistance, disability verification, 
863.17 	medication management, and medical treatment;
863.18 	(3) conduct outreach to families and providers; and
863.19 	(4) evaluate the impact of engagement services on decreasing civil commitments, 
863.20 	increasing engagement in treatment, decreasing police involvement with individuals 
863.21 	exhibiting symptoms of serious mental illness, and other measures.
863.22 	(b) Grantees must seek reimbursement for all activities and provided services eligible 
863.23 	for medical assistance.
863.24 	(c) Engagement services staff must have completed training on person-centered care. 
863.25 	Staff may include but are not limited to mobile crisis providers under Minnesota Statutes, 
863.26 	section 256B.0624; certified peer specialists under Minnesota Statutes, section 256B.0615; 
863.27 	community-based treatment programs staff; and homeless outreach workers.

863.28 	Sec. 11. DIRECTION TO COMMISSIONER OF HUMAN SERVICES; LIMITED 
863.29 	EXCEPTION FOR ADMISSION FROM HOSPITAL SETTINGS.
 863.30 	The commissioner of human services must immediately approve an exception to add 
863.31 	up to ten patients who have been civilly committed and are in hospital settings to the waiting 
863.32 	list for admission to medically appropriate direct care and treatment beds under Minnesota 
864.1 	Statutes, section 253B.10, subdivision 1, paragraph (b). This section expires upon the 
864.2 	commissioner's approval of the exception for ten patients who have been civilly committed 
864.3 	and are awaiting admission.

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

864.5 	Sec. 12. COUNTY CORRECTIONAL FACILITY LONG-ACTING INJECTABLE 
864.6 	ANTIPSYCHOTIC MEDICATION PILOT PROGRAM.
 864.7 		Subdivision 1.Authorization. The commissioner of human services must establish a 
864.8 	pilot program that provides payments to counties to support county correctional facilities 
864.9 	in administering long-acting injectable antipsychotic medications to prisoners for mental 
864.10 	health treatment.
864.11 		Subd. 2.Application. Counties may submit requests for reimbursement for costs incurred 
864.12 	pursuant to subdivision 3 on an application form specified by the commissioner. Requests 
864.13 	for reimbursement for the cost of a long-acting injectable antipsychotic medication must 
864.14 	be accompanied by the correctional facility's invoice for the long-acting injectable 
864.15 	antipsychotic medication. The commissioner must issue an application to each county board 
864.16 	at least once per calendar quarter until money for the pilot program is expended.
864.17 		Subd. 3.Pilot program payments; allowable uses. Counties must use payments received 
864.18 	under this section for reimbursement of costs incurred during the most recent calendar 
864.19 	quarter for:
864.20 	(1) long-acting injectable antipsychotic medications for prisoners in county correctional 
864.21 	facilities; and
864.22 	(2) health care costs related to the administration of long-acting injectable antipsychotic 
864.23 	medications for prisoners in correctional facilities.
864.24 		Subd. 4.Pilot program payment allocation. (a) The commissioner may allocate up to 
864.25 	one quarter of the total appropriation for the pilot program each quarter. If the amount of 
864.26 	money for eligible requests received exceeds the amount of money available in the quarter, 
864.27 	the commissioner shall determine an equitable allocation of payments among the applicants.
864.28 	(b) The commissioner may review costs and set a reasonable cap on the reimbursement 
864.29 	amount for medications and treatment.
864.30 	(c) The commissioner's determination of payment amounts and allocation methods is 
864.31 	final and not subject to appeal.
865.1 		Subd. 5.Report. By December 15, 2025, the commissioner must provide a summary 
865.2 	report on the pilot program to the chairs and ranking minority members of the legislative 
865.3 	committees with jurisdiction over mental health and county correctional facilities.

865.4 	Sec. 13. REPORT ON INPATIENT SUBSTANCE USE DISORDER BEDS.
 865.5 	By January 15, 2025, the Direct Care and Treatment executive board must submit a 
865.6 	report to the chairs and ranking minority members of the legislative committees with 
865.7 	jurisdiction over human services finance and policy with options for increasing inpatient 
865.8 	substance use disorder beds operated by the executive board. One option must include the 
865.9 	development of an inpatient substance use disorder program operated by the executive board 
865.10 	within 35 miles of the existing CARE-St. Peter facility.

865.11 	ARTICLE 50
865.12 	DIRECT CARE AND TREATMENT

865.13 	Section 1. Minnesota Statutes 2023 Supplement, section 10.65, subdivision 2, is amended 
865.14 	to read:
865.15 		Subd. 2.Definitions. As used in this section, the following terms have the meanings 
865.16 	given:
865.17 	(1) "agency" means the Department of Administration; Department of Agriculture; 
865.18 	Department of Children, Youth, and Families; Department of Commerce; Department of 
865.19 	Corrections; Department of Education; Department of Employment and Economic 
865.20 	Development; Department of Health; Office of Higher Education; Housing Finance Agency; 
865.21 	Department of Human Rights; Department of Human Services; Department of Information 
865.22 	Technology Services; Department of Iron Range Resources and Rehabilitation; Department 
865.23 	of Labor and Industry; Minnesota Management and Budget; Bureau of Mediation Services; 
865.24 	Department of Military Affairs; Metropolitan Council; Department of Natural Resources; 
865.25 	Pollution Control Agency; Department of Public Safety; Department of Revenue; Department 
865.26 	of Transportation; Department of Veterans Affairs; Direct Care and Treatment; Gambling 
865.27 	Control Board; Racing Commission; the Minnesota Lottery; the Animal Health Board; and 
865.28 	the Board of Water and Soil Resources;
865.29 	(2) "consultation" means the direct and interactive involvement of the Minnesota Tribal 
865.30 	governments in the development of policy on matters that have Tribal implications. 
865.31 	Consultation is the proactive, affirmative process of identifying and seeking input from 
865.32 	appropriate Tribal governments and considering their interest as a necessary and integral 
865.33 	part of the decision-making process. This definition adds to statutorily mandated notification 
866.1 	procedures. During a consultation, the burden is on the agency to show that it has made a 
866.2 	good faith effort to elicit feedback. Consultation is a formal engagement between agency 
866.3 	officials and the governing body or bodies of an individual Minnesota Tribal government 
866.4 	that the agency or an individual Tribal government may initiate. Formal meetings or 
866.5 	communication between top agency officials and the governing body of a Minnesota Tribal 
866.6 	government is a necessary element of consultation;
866.7 	(3) "matters that have Tribal implications" means rules, legislative proposals, policy 
866.8 	statements, or other actions that have substantial direct effects on one or more Minnesota 
866.9 	Tribal governments, or on the distribution of power and responsibilities between the state 
866.10 	and Minnesota Tribal governments;
866.11 	(4) "Minnesota Tribal governments" means the federally recognized Indian Tribes located 
866.12 	in Minnesota including: Bois Forte Band; Fond Du Lac Band; Grand Portage Band; Leech 
866.13 	Lake Band; Mille Lacs Band; White Earth Band; Red Lake Nation; Lower Sioux Indian 
866.14 	Community; Prairie Island Indian Community; Shakopee Mdewakanton Sioux Community; 
866.15 	and Upper Sioux Community; and
866.16 	(5) "timely and meaningful" means done or occurring at a favorable or useful time that 
866.17 	allows the result of consultation to be included in the agency's decision-making process for 
866.18 	a matter that has Tribal implications.

866.19 	EFFECTIVE DATE. This section is effective July 1, 2024.

866.20 	Sec. 2. Minnesota Statutes 2022, section 13.46, subdivision 1, as amended by Laws 2024, 
866.21 	chapter 79, article 9, section 1, and Laws 2024, chapter 80, article 8, section 1, is amended 
866.22 	to read:
866.23 		Subdivision 1.Definitions. As used in this section:
866.24 	(a) "Individual" means an individual according to section 13.02, subdivision 8, but does 
866.25 	not include a vendor of services.
866.26 	(b) "Program" includes all programs for which authority is vested in a component of the 
866.27 	welfare system according to statute or federal law, including but not limited to Native 
866.28 	American Tribe programs that provide a service component of the welfare system, the 
866.29 	Minnesota family investment program, medical assistance, general assistance, general 
866.30 	assistance medical care formerly codified in chapter 256D, the child care assistance program, 
866.31 	and child support collections.
866.32 	(c) "Welfare system" includes the Department of Human Services; the Department of
866.33 	Direct Care and Treatment; the Department of Children, Youth, and Families; local social 
867.1 	services agencies; county welfare agencies; county public health agencies; county veteran 
867.2 	services agencies; county housing agencies; private licensing agencies; the public authority 
867.3 	responsible for child support enforcement; human services boards; community mental health 
867.4 	center boards, state hospitals, state nursing homes, the ombudsman for mental health and 
867.5 	developmental disabilities; Native American Tribes to the extent a Tribe provides a service 
867.6 	component of the welfare system; and persons, agencies, institutions, organizations, and 
867.7 	other entities under contract to any of the above agencies to the extent specified in the 
867.8 	contract.
867.9 	(d) "Mental health data" means data on individual clients and patients of community 
867.10 	mental health centers, established under section 245.62, mental health divisions of counties 
867.11 	and other providers under contract to deliver mental health services, Department of Direct 
867.12 	Care and Treatment mental health services, or the ombudsman for mental health and 
867.13 	developmental disabilities.
867.14 	(e) "Fugitive felon" means a person who has been convicted of a felony and who has 
867.15 	escaped from confinement or violated the terms of probation or parole for that offense.
867.16 	(f) "Private licensing agency" means an agency licensed by the commissioner of children, 
867.17 	youth, and families under chapter 142B to perform the duties under section 142B.30.

867.18 	EFFECTIVE DATE. This section is effective July 1, 2024.

867.19 	Sec. 3. Minnesota Statutes 2023 Supplement, section 13.46, subdivision 2, as amended 
867.20 	by Laws 2024, chapter 80, article 8, section 2, is amended to read:
867.21 		Subd. 2.General. (a) Data on individuals collected, maintained, used, or disseminated 
867.22 	by the welfare system are private data on individuals, and shall not be disclosed except:
867.23 	(1) according to section 13.05;
867.24 	(2) according to court order;
867.25 	(3) according to a statute specifically authorizing access to the private data;
867.26 	(4) to an agent of the welfare system and an investigator acting on behalf of a county, 
867.27 	the state, or the federal government, including a law enforcement person or attorney in the 
867.28 	investigation or prosecution of a criminal, civil, or administrative proceeding relating to the 
867.29 	administration of a program;
867.30 	(5) to personnel of the welfare system who require the data to verify an individual's 
867.31 	identity; determine eligibility, amount of assistance, and the need to provide services to an 
867.32 	individual or family across programs; coordinate services for an individual or family; 
868.1 	evaluate the effectiveness of programs; assess parental contribution amounts; and investigate 
868.2 	suspected fraud;
868.3 	(6) to administer federal funds or programs;
868.4 	(7) between personnel of the welfare system working in the same program;
868.5 	(8) to the Department of Revenue to assess parental contribution amounts for purposes 
868.6 	of section 252.27, subdivision 2a, administer and evaluate tax refund or tax credit programs 
868.7 	and to identify individuals who may benefit from these programs, and prepare the databases 
868.8 	for reports required under section 270C.13 and Laws 2008, chapter 366, article 17, section 
868.9 	6. The following information may be disclosed under this paragraph: an individual's and 
868.10 	their dependent's names, dates of birth, Social Security or individual taxpayer identification 
868.11 	numbers, income, addresses, and other data as required, upon request by the Department 
868.12 	of Revenue. Disclosures by the commissioner of revenue to the commissioner of human 
868.13 	services for the purposes described in this clause are governed by section 270B.14, 
868.14 	subdivision 1. Tax refund or tax credit programs include, but are not limited to, the dependent 
868.15 	care credit under section 290.067, the Minnesota working family credit under section 
868.16 	290.0671, the property tax refund under section 290A.04, and the Minnesota education 
868.17 	credit under section 290.0674;
868.18 	(9) between the Department of Human Services; the Department of Employment and 
868.19 	Economic Development; the Department of Children, Youth, and Families; Direct Care and 
868.20 	Treatment; and, when applicable, the Department of Education, for the following purposes:
868.21 	(i) to monitor the eligibility of the data subject for unemployment benefits, for any 
868.22 	employment or training program administered, supervised, or certified by that agency;
868.23 	(ii) to administer any rehabilitation program or child care assistance program, whether 
868.24 	alone or in conjunction with the welfare system;
868.25 	(iii) to monitor and evaluate the Minnesota family investment program or the child care 
868.26 	assistance program by exchanging data on recipients and former recipients of Supplemental 
868.27 	Nutrition Assistance Program (SNAP) benefits, cash assistance under chapter 256, 256D, 
868.28 	256J, or 256K, child care assistance under chapter 119B, medical programs under chapter 
868.29 	256B or 256L; and
868.30 	(iv) to analyze public assistance employment services and program utilization, cost, 
868.31 	effectiveness, and outcomes as implemented under the authority established in Title II, 
868.32 	Sections 201-204 of the Ticket to Work and Work Incentives Improvement Act of 1999. 
868.33 	Health records governed by sections 144.291 to 144.298 and "protected health information" 
869.1 	as defined in Code of Federal Regulations, title 45, section 160.103, and governed by Code 
869.2 	of Federal Regulations, title 45, parts 160-164, including health care claims utilization 
869.3 	information, must not be exchanged under this clause;
869.4 	(10) to appropriate parties in connection with an emergency if knowledge of the 
869.5 	information is necessary to protect the health or safety of the individual or other individuals 
869.6 	or persons;
869.7 	(11) data maintained by residential programs as defined in section 245A.02 may be 
869.8 	disclosed to the protection and advocacy system established in this state according to Part 
869.9 	C of Public Law 98-527 to protect the legal and human rights of persons with developmental 
869.10 	disabilities or other related conditions who live in residential facilities for these persons if 
869.11 	the protection and advocacy system receives a complaint by or on behalf of that person and 
869.12 	the person does not have a legal guardian or the state or a designee of the state is the legal 
869.13 	guardian of the person;
869.14 	(12) to the county medical examiner or the county coroner for identifying or locating 
869.15 	relatives or friends of a deceased person;
869.16 	(13) data on a child support obligor who makes payments to the public agency may be 
869.17 	disclosed to the Minnesota Office of Higher Education to the extent necessary to determine 
869.18 	eligibility under section 136A.121, subdivision 2, clause (5);
869.19 	(14) participant Social Security or individual taxpayer identification numbers and names 
869.20 	collected by the telephone assistance program may be disclosed to the Department of 
869.21 	Revenue to conduct an electronic data match with the property tax refund database to 
869.22 	determine eligibility under section 237.70, subdivision 4a;
869.23 	(15) the current address of a Minnesota family investment program participant may be 
869.24 	disclosed to law enforcement officers who provide the name of the participant and notify 
869.25 	the agency that:
869.26 	(i) the participant:
869.27 	(A) is a fugitive felon fleeing to avoid prosecution, or custody or confinement after 
869.28 	conviction, for a crime or attempt to commit a crime that is a felony under the laws of the 
869.29 	jurisdiction from which the individual is fleeing; or
869.30 	(B) is violating a condition of probation or parole imposed under state or federal law;
869.31 	(ii) the location or apprehension of the felon is within the law enforcement officer's 
869.32 	official duties; and
870.1 	(iii) the request is made in writing and in the proper exercise of those duties;
870.2 	(16) the current address of a recipient of general assistance may be disclosed to probation 
870.3 	officers and corrections agents who are supervising the recipient and to law enforcement 
870.4 	officers who are investigating the recipient in connection with a felony level offense;
870.5 	(17) information obtained from a SNAP applicant or recipient households may be 
870.6 	disclosed to local, state, or federal law enforcement officials, upon their written request, for 
870.7 	the purpose of investigating an alleged violation of the Food and Nutrition Act, according 
870.8 	to Code of Federal Regulations, title 7, section 272.1(c);
870.9 	(18) the address, Social Security or individual taxpayer identification number, and, if 
870.10 	available, photograph of any member of a household receiving SNAP benefits shall be made 
870.11 	available, on request, to a local, state, or federal law enforcement officer if the officer 
870.12 	furnishes the agency with the name of the member and notifies the agency that:
870.13 	(i) the member:
870.14 	(A) is fleeing to avoid prosecution, or custody or confinement after conviction, for a 
870.15 	crime or attempt to commit a crime that is a felony in the jurisdiction the member is fleeing;
870.16 	(B) is violating a condition of probation or parole imposed under state or federal law; 
870.17 	or
870.18 	(C) has information that is necessary for the officer to conduct an official duty related 
870.19 	to conduct described in subitem (A) or (B);
870.20 	(ii) locating or apprehending the member is within the officer's official duties; and
870.21 	(iii) the request is made in writing and in the proper exercise of the officer's official duty;
870.22 	(19) the current address of a recipient of Minnesota family investment program, general 
870.23 	assistance, or SNAP benefits may be disclosed to law enforcement officers who, in writing, 
870.24 	provide the name of the recipient and notify the agency that the recipient is a person required 
870.25 	to register under section 243.166, but is not residing at the address at which the recipient is 
870.26 	registered under section 243.166;
870.27 	(20) certain information regarding child support obligors who are in arrears may be 
870.28 	made public according to section 518A.74;
870.29 	(21) data on child support payments made by a child support obligor and data on the 
870.30 	distribution of those payments excluding identifying information on obligees may be 
870.31 	disclosed to all obligees to whom the obligor owes support, and data on the enforcement 
871.1 	actions undertaken by the public authority, the status of those actions, and data on the income 
871.2 	of the obligor or obligee may be disclosed to the other party;
871.3 	(22) data in the work reporting system may be disclosed under section 256.998, 
871.4 	subdivision 7;
871.5 	(23) to the Department of Education for the purpose of matching Department of Education 
871.6 	student data with public assistance data to determine students eligible for free and 
871.7 	reduced-price meals, meal supplements, and free milk according to United States Code, 
871.8 	title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to allocate federal and state 
871.9 	funds that are distributed based on income of the student's family; and to verify receipt of 
871.10 	energy assistance for the telephone assistance plan;
871.11 	(24) the current address and telephone number of program recipients and emergency 
871.12 	contacts may be released to the commissioner of health or a community health board as 
871.13 	defined in section 145A.02, subdivision 5, when the commissioner or community health 
871.14 	board has reason to believe that a program recipient is a disease case, carrier, suspect case, 
871.15 	or at risk of illness, and the data are necessary to locate the person;
871.16 	(25) to other state agencies, statewide systems, and political subdivisions of this state, 
871.17 	including the attorney general, and agencies of other states, interstate information networks, 
871.18 	federal agencies, and other entities as required by federal regulation or law for the 
871.19 	administration of the child support enforcement program;
871.20 	(26) to personnel of public assistance programs as defined in section 256.741, for access 
871.21 	to the child support system database for the purpose of administration, including monitoring 
871.22 	and evaluation of those public assistance programs;
871.23 	(27) to monitor and evaluate the Minnesota family investment program by exchanging 
871.24 	data between the Departments of Human Services; Children, Youth, and Families; and 
871.25 	Education, on recipients and former recipients of SNAP benefits, cash assistance under 
871.26 	chapter 256, 256D, 256J, or 256K, child care assistance under chapter 119B, medical 
871.27 	programs under chapter 256B or 256L, or a medical program formerly codified under chapter 
871.28 	256D;
871.29 	(28) to evaluate child support program performance and to identify and prevent fraud 
871.30 	in the child support program by exchanging data between the Department of Human Services; 
871.31 	Department of Children, Youth, and Families; Department of Revenue under section 270B.14, 
871.32 	subdivision 1, paragraphs (a) and (b), without regard to the limitation of use in paragraph 
871.33 	(c); Department of Health; Department of Employment and Economic Development; and 
871.34 	other state agencies as is reasonably necessary to perform these functions;
872.1 	(29) counties and the Department of Children, Youth, and Families operating child care 
872.2 	assistance programs under chapter 119B may disseminate data on program participants, 
872.3 	applicants, and providers to the commissioner of education;
872.4 	(30) child support data on the child, the parents, and relatives of the child may be 
872.5 	disclosed to agencies administering programs under titles IV-B and IV-E of the Social 
872.6 	Security Act, as authorized by federal law;
872.7 	(31) to a health care provider governed by sections 144.291 to 144.298, to the extent 
872.8 	necessary to coordinate services;
872.9 	(32) to the chief administrative officer of a school to coordinate services for a student 
872.10 	and family; data that may be disclosed under this clause are limited to name, date of birth, 
872.11 	gender, and address;
872.12 	(33) to county correctional agencies to the extent necessary to coordinate services and 
872.13 	diversion programs; data that may be disclosed under this clause are limited to name, client 
872.14 	demographics, program, case status, and county worker information; or
872.15 	(34) between the Department of Human Services and the Metropolitan Council for the 
872.16 	following purposes:
872.17 	(i) to coordinate special transportation service provided under section 473.386 with 
872.18 	services for people with disabilities and elderly individuals funded by or through the 
872.19 	Department of Human Services; and
872.20 	(ii) to provide for reimbursement of special transportation service provided under section 
872.21 	473.386.
872.22 	The data that may be shared under this clause are limited to the individual's first, last, and 
872.23 	middle names; date of birth; residential address; and program eligibility status with expiration 
872.24 	date for the purposes of informing the other party of program eligibility.
872.25 	(b) Information on persons who have been treated for substance use disorder may only 
872.26 	be disclosed according to the requirements of Code of Federal Regulations, title 42, sections 
872.27 	2.1 to 2.67.
872.28 	(c) Data provided to law enforcement agencies under paragraph (a), clause (15), (16), 
872.29 	(17), or (18), or paragraph (b), are investigative data and are confidential or protected 
872.30 	nonpublic while the investigation is active. The data are private after the investigation 
872.31 	becomes inactive under section 13.82, subdivision 7, clause (a) or (b).
873.1 	(d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but are 
873.2 	not subject to the access provisions of subdivision 10, paragraph (b).
873.3 	For the purposes of this subdivision, a request will be deemed to be made in writing if 
873.4 	made through a computer interface system.

873.5 	EFFECTIVE DATE. This section is effective July 1, 2024.

873.6 	Sec. 4. Minnesota Statutes 2022, section 13.46, subdivision 10, as amended by Laws 2024, 
873.7 	chapter 79, article 9, section 2, is amended to read:
873.8 		Subd. 10.Responsible authority. (a) Notwithstanding any other provision of this chapter 
873.9 	to the contrary, the responsible authority for each component of the welfare system listed 
873.10 	in subdivision 1, clause (c), shall be as follows:
873.11 	(1) the responsible authority for the Department of Human Services is the commissioner 
873.12 	of human services;
873.13 	(2) the responsible authority of a county welfare agency is the director of the county 
873.14 	welfare agency;
873.15 	(3) the responsible authority for a local social services agency, human services board, 
873.16 	or community mental health center board is the chair of the board;
873.17 	(4) the responsible authority of any person, agency, institution, organization, or other 
873.18 	entity under contract to any of the components of the welfare system listed in subdivision 
873.19 	1, clause (c), is the person specified in the contract;
873.20 	(5) the responsible authority of the public authority for child support enforcement is the 
873.21 	head of the public authority for child support enforcement;
873.22 	(6) the responsible authority for county veteran services is the county veterans service 
873.23 	officer pursuant to section 197.603, subdivision 2; and
873.24 	(7) the responsible authority for the Department of Direct Care and Treatment is the 
873.25 	chief executive officer of Direct Care and Treatment executive board.
873.26 	(b) A responsible authority shall allow another responsible authority in the welfare 
873.27 	system access to data classified as not public data when access is necessary for the 
873.28 	administration and management of programs, or as authorized or required by statute or 
873.29 	federal law.

873.30 	EFFECTIVE DATE. This section is effective July 1, 2024.

874.1 	Sec. 5. Minnesota Statutes 2023 Supplement, section 15.01, is amended to read:
874.2 	15.01 DEPARTMENTS OF THE STATE.
874.3 	The following agencies are designated as the departments of the state government: the 
874.4 	Department of Administration; the Department of Agriculture; the Department of Children, 
874.5 	Youth, and Families; the Department of Commerce; the Department of Corrections; the 
874.6 	Department of Direct Care and Treatment; the Department of Education; the Department 
874.7 	of Employment and Economic Development; the Department of Health; the Department of 
874.8 	Human Rights; the Department of Human Services; the Department of Information 
874.9 	Technology Services; the Department of Iron Range Resources and Rehabilitation; the 
874.10 	Department of Labor and Industry; the Department of Management and Budget; the 
874.11 	Department of Military Affairs; the Department of Natural Resources; the Department of 
874.12 	Public Safety; the Department of Revenue; the Department of Transportation; the Department 
874.13 	of Veterans Affairs; and their successor departments.

874.14 	EFFECTIVE DATE. This section is effective July 1, 2024.

874.15 	Sec. 6. Minnesota Statutes 2023 Supplement, section 15.06, subdivision 1, as amended 
874.16 	by Laws 2024, chapter 85, section 6, is amended to read:
874.17 		Subdivision 1.Applicability. This section applies to the following departments or 
874.18 	agencies: the Departments of Administration; Agriculture; Children, Youth, and Families; 
874.19 	Commerce; Corrections; Direct Care and Treatment; Education; Employment and Economic 
874.20 	Development; Health; Human Rights; Human Services; Iron Range Resources and 
874.21 	Rehabilitation; Labor and Industry; Management and Budget; Natural Resources; Public 
874.22 	Safety; Revenue; Transportation; and Veterans Affairs; the Housing Finance and Pollution 
874.23 	Control Agencies; the Department of Information Technology Services; the Bureau of 
874.24 	Mediation Services; and their successor departments and agencies. The heads of the foregoing 
874.25 	departments or agencies are "commissioners."

874.26 	EFFECTIVE DATE. This section is effective July 1, 2024t.

874.27 	Sec. 7. Minnesota Statutes 2023 Supplement, section 15A.0815, subdivision 2, is amended 
874.28 	to read:
874.29 		Subd. 2.Agency head salaries. The salary for a position listed in this subdivision shall 
874.30 	be determined by the Compensation Council under section 15A.082. The commissioner of 
874.31 	management and budget must publish the salaries on the department's website. This 
874.32 	subdivision applies to the following positions:
875.1 	Commissioner of administration;
875.2 	Commissioner of agriculture;
875.3 	Commissioner of education;
875.4 	Commissioner of children, youth, and families;
875.5 	Commissioner of commerce;
875.6 	Commissioner of corrections;
875.7 	Commissioner of health;
875.8 	Commissioner, Minnesota Office of Higher Education;
875.9 	Commissioner, Minnesota IT Services;
875.10 	Commissioner, Housing Finance Agency;
875.11 	Commissioner of human rights;
875.12 	Commissioner of human services;
875.13 	Commissioner of labor and industry;
875.14 	Commissioner of management and budget;
875.15 	Commissioner of natural resources;
875.16 	Commissioner, Pollution Control Agency;
875.17 	Commissioner of public safety;
875.18 	Commissioner of revenue;
875.19 	Commissioner of employment and economic development;
875.20 	Commissioner of transportation;
875.21 	Commissioner of veterans affairs;
875.22 	Executive director of the Gambling Control Board;
875.23 	Executive director of the Minnesota State Lottery;
875.24 	Commissioner of Iron Range resources and rehabilitation;
875.25 	Commissioner, Bureau of Mediation Services;
875.26 	Ombudsman for mental health and developmental disabilities;
875.27 	Ombudsperson for corrections;
876.1 	Chair, Metropolitan Council;
876.2 	Chair, Metropolitan Airports Commission;
876.3 	School trust lands director;
876.4 	Executive director of pari-mutuel racing; and
876.5 	Commissioner, Public Utilities Commission; and
876.6 	Chief Executive Officer, Direct Care and Treatment.

876.7 	Sec. 8. Minnesota Statutes 2023 Supplement, section 15A.082, subdivision 1, is amended 
876.8 	to read:
876.9 		Subdivision 1.Creation. A Compensation Council is created each odd-numbered year 
876.10 	to establish the compensation of constitutional officers and the heads of state and metropolitan 
876.11 	agencies identified in section 15A.0815, and to assist the legislature in establishing the 
876.12 	compensation of justices of the supreme court and judges of the court of appeals and district 
876.13 	court, and to determine the daily compensation for voting members of the Direct Care and 
876.14 	Treatment executive board.

876.15 	Sec. 9. Minnesota Statutes 2023 Supplement, section 15A.082, subdivision 3, is amended 
876.16 	to read:
876.17 		Subd. 3.Submission of recommendations and determination. (a) By April 1 in each 
876.18 	odd-numbered year, the Compensation Council shall submit to the speaker of the house and 
876.19 	the president of the senate salary recommendations for justices of the supreme court, and 
876.20 	judges of the court of appeals and district court. The recommended salaries take effect on 
876.21 	July 1 of that year and July 1 of the subsequent even-numbered year and at whatever interval 
876.22 	the council recommends thereafter, unless the legislature by law provides otherwise. The 
876.23 	salary recommendations take effect if an appropriation of money to pay the recommended 
876.24 	salaries is enacted after the recommendations are submitted and before their effective date. 
876.25 	Recommendations may be expressly modified or rejected.
876.26 	(b) By April 1 in each odd-numbered year, the Compensation Council must prescribe 
876.27 	salaries for constitutional officers, and for the agency and metropolitan agency heads 
876.28 	identified in section 15A.0815. The prescribed salary for each office must take effect July 
876.29 	1 of that year and July 1 of the subsequent even-numbered year and at whatever interval 
876.30 	the council determines thereafter, unless the legislature by law provides otherwise. An 
876.31 	appropriation by the legislature to fund the relevant office, branch, or agency of an amount 
877.1 	sufficient to pay the salaries prescribed by the council constitutes a prescription by law as 
877.2 	provided in the Minnesota Constitution, article V, sections 4 and 5.
877.3 	(c) By April 1 in each odd-numbered year, the Compensation Council must prescribe 
877.4 	daily compensation for voting members of the Direct Care and Treatment executive board. 
877.5 	The recommended daily compensation takes effect on July 1 of that year and July 1 of the 
877.6 	subsequent even-numbered year and at whatever interval the council recommends thereafter, 
877.7 	unless the legislature by law provides otherwise.

877.8 	Sec. 10. Minnesota Statutes 2023 Supplement, section 15A.082, subdivision 7, is amended 
877.9 	to read:
877.10 		Subd. 7.No ex parte communications. Members may not have any communication 
877.11 	with a constitutional officer, a head of a state agency, or a member of the judiciary, or a 
877.12 	member of the Direct Care and Treatment executive board during the period after the first 
877.13 	meeting is convened under this section and the date the prescribed and recommended salaries
877.14 	and daily compensation are submitted under subdivision 3.

877.15 	Sec. 11. Minnesota Statutes 2023 Supplement, section 43A.08, subdivision 1, is amended 
877.16 	to read:
877.17 		Subdivision 1.Unclassified positions.  Unclassified positions are held by employees 
877.18 	who are:
877.19 	(1) chosen by election or appointed to fill an elective office;
877.20 	(2) heads of agencies required by law to be appointed by the governor or other elective 
877.21 	officers, and the executive or administrative heads of departments, bureaus, divisions, and 
877.22 	institutions specifically established by law in the unclassified service;
877.23 	(3) deputy and assistant agency heads and one confidential secretary in the agencies 
877.24 	listed in subdivision 1a;
877.25 	(4) the confidential secretary to each of the elective officers of this state and, for the 
877.26 	secretary of state and state auditor, an additional deputy, clerk, or employee;
877.27 	(5) intermittent help employed by the commissioner of public safety to assist in the 
877.28 	issuance of vehicle licenses;
877.29 	(6) employees in the offices of the governor and of the lieutenant governor and one 
877.30 	confidential employee for the governor in the Office of the Adjutant General;
877.31 	(7) employees of the Washington, D.C., office of the state of Minnesota;
878.1 	(8) employees of the legislature and of legislative committees or commissions; provided 
878.2 	that employees of the Legislative Audit Commission, except for the legislative auditor, the 
878.3 	deputy legislative auditors, and their confidential secretaries, shall be employees in the 
878.4 	classified service;
878.5 	(9) presidents, vice-presidents, deans, other managers and professionals in academic 
878.6 	and academic support programs, administrative or service faculty, teachers, research 
878.7 	assistants, and student employees eligible under terms of the federal Economic Opportunity 
878.8 	Act work study program in the Perpich Center for Arts Education and the Minnesota State 
878.9 	Colleges and Universities, but not the custodial, clerical, or maintenance employees, or any 
878.10 	professional or managerial employee performing duties in connection with the business 
878.11 	administration of these institutions;
878.12 	(10) officers and enlisted persons in the National Guard;
878.13 	(11) attorneys, legal assistants, and three confidential employees appointed by the attorney 
878.14 	general or employed with the attorney general's authorization;
878.15 	(12) judges and all employees of the judicial branch, referees, receivers, jurors, and 
878.16 	notaries public, except referees and adjusters employed by the Department of Labor and 
878.17 	Industry;
878.18 	(13) members of the State Patrol; provided that selection and appointment of State Patrol 
878.19 	troopers must be made in accordance with applicable laws governing the classified service;
878.20 	(14) examination monitors and intermittent training instructors employed by the 
878.21 	Departments of Management and Budget and Commerce and by professional examining 
878.22 	boards and intermittent staff employed by the technical colleges for the administration of 
878.23 	practical skills tests and for the staging of instructional demonstrations;
878.24 	(15) student workers;
878.25 	(16) executive directors or executive secretaries appointed by and reporting to any 
878.26 	policy-making board or commission established by statute;
878.27 	(17) employees unclassified pursuant to other statutory authority;
878.28 	(18) intermittent help employed by the commissioner of agriculture to perform duties 
878.29 	relating to pesticides, fertilizer, and seed regulation;
878.30 	(19) the administrators and the deputy administrators at the State Academies for the 
878.31 	Deaf and the Blind; and
879.1 	(20) the chief executive officers in the Department of Human Services officer of Direct 
879.2 	Care and Treatment.

879.3 	EFFECTIVE DATE. This section is effective July 1, 2024.

879.4 	Sec. 12. Minnesota Statutes 2023 Supplement, section 43A.08, subdivision 1a, is amended 
879.5 	to read:
879.6 		Subd. 1a.Additional unclassified positions. Appointing authorities for the following 
879.7 	agencies may designate additional unclassified positions according to this subdivision: the 
879.8 	Departments of Administration; Agriculture; Children, Youth, and Families; Commerce; 
879.9 	Corrections; Direct Care and Treatment; Education; Employment and Economic 
879.10 	Development; Explore Minnesota Tourism; Management and Budget; Health; Human 
879.11 	Rights; Human Services; Labor and Industry; Natural Resources; Public Safety; Revenue; 
879.12 	Transportation; and Veterans Affairs; the Housing Finance and Pollution Control Agencies; 
879.13 	the State Lottery; the State Board of Investment; the Office of Administrative Hearings; the 
879.14 	Department of Information Technology Services; the Offices of the Attorney General, 
879.15 	Secretary of State, and State Auditor; the Minnesota State Colleges and Universities; the 
879.16 	Minnesota Office of Higher Education; the Perpich Center for Arts Education; Direct Care 
879.17 	and Treatment; and the Minnesota Zoological Board.
879.18 	A position designated by an appointing authority according to this subdivision must 
879.19 	meet the following standards and criteria:
879.20 	(1) the designation of the position would not be contrary to other law relating specifically 
879.21 	to that agency;
879.22 	(2) the person occupying the position would report directly to the agency head or deputy 
879.23 	agency head and would be designated as part of the agency head's management team;
879.24 	(3) the duties of the position would involve significant discretion and substantial 
879.25 	involvement in the development, interpretation, and implementation of agency policy;
879.26 	(4) the duties of the position would not require primarily personnel, accounting, or other 
879.27 	technical expertise where continuity in the position would be important;
879.28 	(5) there would be a need for the person occupying the position to be accountable to, 
879.29 	loyal to, and compatible with, the governor and the agency head, the employing statutory 
879.30 	board or commission, or the employing constitutional officer;
879.31 	(6) the position would be at the level of division or bureau director or assistant to the 
879.32 	agency head; and
880.1 	(7) the commissioner has approved the designation as being consistent with the standards 
880.2 	and criteria in this subdivision.

880.3 	EFFECTIVE DATE. This section is effective July 1, 2024.

880.4 	Sec. 13. Minnesota Statutes 2022, section 145.61, subdivision 5, is amended to read:
880.5 		Subd. 5.Review organization. "Review organization" means a nonprofit organization 
880.6 	acting according to clause (l), a committee as defined under section 144E.32, subdivision 
880.7 	2, or a committee whose membership is limited to professionals, administrative staff, and 
880.8 	consumer directors, except where otherwise provided for by state or federal law, and which 
880.9 	is established by one or more of the following: a hospital, a clinic, a nursing home, an 
880.10 	ambulance service or first responder service regulated under chapter 144E, one or more 
880.11 	state or local associations of professionals, an organization of professionals from a particular 
880.12 	area or medical institution, a health maintenance organization as defined in chapter 62D, a 
880.13 	community integrated service network as defined in chapter 62N, a nonprofit health service 
880.14 	plan corporation as defined in chapter 62C, a preferred provider organization, a professional 
880.15 	standards review organization established pursuant to United States Code, title 42, section 
880.16 	1320c-1 et seq., a medical review agent established to meet the requirements of section 
880.17 	256B.04, subdivision 15, the Department of Human Services, Direct Care and Treatment, 
880.18 	or a nonprofit corporation that owns, operates, or is established by one or more of the above 
880.19 	referenced entities, to gather and review information relating to the care and treatment of 
880.20 	patients for the purposes of:
880.21 	(a) evaluating and improving the quality of health care;
880.22 	(b) reducing morbidity or mortality;
880.23 	(c) obtaining and disseminating statistics and information relative to the treatment and 
880.24 	prevention of diseases, illness and injuries;
880.25 	(d) developing and publishing guidelines showing the norms of health care in the area 
880.26 	or medical institution or in the entity or organization that established the review organization;
880.27 	(e) developing and publishing guidelines designed to keep within reasonable bounds the 
880.28 	cost of health care;
880.29 	(f) developing and publishing guidelines designed to improve the safety of care provided 
880.30 	to individuals;
881.1 	(g) reviewing the safety, quality, or cost of health care services provided to enrollees of 
881.2 	health maintenance organizations, community integrated service networks, health service 
881.3 	plans, preferred provider organizations, and insurance companies;
881.4 	(h) acting as a professional standards review organization pursuant to United States 
881.5 	Code, title 42, section 1320c-1 et seq.;
881.6 	(i) determining whether a professional shall be granted staff privileges in a medical 
881.7 	institution, membership in a state or local association of professionals, or participating status 
881.8 	in a nonprofit health service plan corporation, health maintenance organization, community 
881.9 	integrated service network, preferred provider organization, or insurance company, or 
881.10 	whether a professional's staff privileges, membership, or participation status should be 
881.11 	limited, suspended or revoked;
881.12 	(j) reviewing, ruling on, or advising on controversies, disputes or questions between:
881.13 	(1) health insurance carriers, nonprofit health service plan corporations, health 
881.14 	maintenance organizations, community integrated service networks, self-insurers and their 
881.15 	insureds, subscribers, enrollees, or other covered persons;
881.16 	(2) professional licensing boards and health providers licensed by them;
881.17 	(3) professionals and their patients concerning diagnosis, treatment or care, or the charges 
881.18 	or fees therefor;
881.19 	(4) professionals and health insurance carriers, nonprofit health service plan corporations, 
881.20 	health maintenance organizations, community integrated service networks, or self-insurers 
881.21 	concerning a charge or fee for health care services provided to an insured, subscriber, 
881.22 	enrollee, or other covered person;
881.23 	(5) professionals or their patients and the federal, state, or local government, or agencies 
881.24 	thereof;
881.25 	(k) providing underwriting assistance in connection with professional liability insurance 
881.26 	coverage applied for or obtained by dentists, or providing assistance to underwriters in 
881.27 	evaluating claims against dentists;
881.28 	(l) acting as a medical review agent under section 256B.04, subdivision 15;
881.29 	(m) providing recommendations on the medical necessity of a health service, or the 
881.30 	relevant prevailing community standard for a health service;
881.31 	(n) providing quality assurance as required by United States Code, title 42, sections 
881.32 	1396r(b)(1)(b) and 1395i-3(b)(1)(b) of the Social Security Act;
882.1 	(o) providing information to group purchasers of health care services when that 
882.2 	information was originally generated within the review organization for a purpose specified 
882.3 	by this subdivision;
882.4 	(p) providing information to other, affiliated or nonaffiliated review organizations, when 
882.5 	that information was originally generated within the review organization for a purpose 
882.6 	specified by this subdivision, and as long as that information will further the purposes of a 
882.7 	review organization as specified by this subdivision; or
882.8 	(q) participating in a standardized incident reporting system, including Internet-based 
882.9 	applications, to share information for the purpose of identifying and analyzing trends in 
882.10 	medical error and iatrogenic injury.

882.11 	EFFECTIVE DATE. This section is effective July 1, 2024.

882.12 	Sec. 14. Minnesota Statutes 2022, section 246.018, subdivision 3, as amended by Laws 
882.13 	2024, chapter 79, article 1, section 6, is amended to read:
882.14 		Subd. 3.Duties. The executive medical director shall:
882.15 	(1) oversee the clinical provision of inpatient mental health services provided in the 
882.16 	state's regional treatment centers;
882.17 	(2) recruit and retain psychiatrists to serve on the direct care and treatment medical staff 
882.18 	established in subdivision 4;
882.19 	(3) consult with the executive board, the chief executive officer, and community mental 
882.20 	health center directors, and the state-operated services governing body to develop standards 
882.21 	for treatment and care of patients in state-operated service programs;
882.22 	(4) develop and oversee a continuing education program for members of the medical 
882.23 	staff; and
882.24 	(5) participate and cooperate in the development and maintenance of a quality assurance 
882.25 	program for state-operated services that assures that residents receive continuous quality 
882.26 	inpatient, outpatient, and postdischarge care.

882.27 	EFFECTIVE DATE. This section is effective July 1, 2024.

882.28 	Sec. 15. Minnesota Statutes 2022, section 246.13, subdivision 2, as amended by Laws 
882.29 	2024, chapter 79, article 2, section 4, is amended to read:
882.30 		Subd. 2.Definitions; risk assessment and management. (a) As used in this section:
883.1 	(1) "appropriate and necessary medical and other records" includes patient medical 
883.2 	records and other protected health information as defined by Code of Federal Regulations, 
883.3 	title 45, section 164.501, relating to a patient in a state-operated services facility including 
883.4 	but not limited to the patient's treatment plan and abuse prevention plan pertinent to the 
883.5 	patient's ongoing care, treatment, or placement in a community-based treatment facility or 
883.6 	a health care facility that is not operated by state-operated services, including information 
883.7 	describing the level of risk posed by a patient when the patient enters the facility;
883.8 	(2) "community-based treatment" means the community support services listed in section 
883.9 	253B.02, subdivision 4b;
883.10 	(3) "criminal history data" means data maintained or used by the Departments of 
883.11 	Corrections and Public Safety and by the supervisory authorities listed in section 13.84, 
883.12 	subdivision 1, that relate to an individual's criminal history or propensity for violence, 
883.13 	including data in the:
883.14 	(i) Corrections Offender Management System (COMS);
883.15 	(ii) Statewide Supervision System (S3);
883.16 	(iii) Bureau of Criminal Apprehension criminal history data as defined in section 13.87;
883.17 	(iv) Integrated Search Service as defined in section 13.873; and
883.18 	(v) Predatory Offender Registration (POR) system;
883.19 	(4) "designated agency" means the agency defined in section 253B.02, subdivision 5;
883.20 	(5) "law enforcement agency" means the law enforcement agency having primary 
883.21 	jurisdiction over the location where the offender expects to reside upon release;
883.22 	(6) "predatory offender" and "offender" mean a person who is required to register as a 
883.23 	predatory offender under section 243.166; and
883.24 	(7) "treatment facility" means a facility as defined in section 253B.02, subdivision 19.
883.25 	(b) To promote public safety and for the purposes and subject to the requirements of 
883.26 	this paragraph, the executive board or the executive board's designee shall have access to, 
883.27 	and may review and disclose, medical and criminal history data as provided by this section, 
883.28 	as necessary to comply with Minnesota Rules, part 1205.0400, to:
883.29 	(1) determine whether a patient is required under state law to register as a predatory 
883.30 	offender according to section 243.166;
884.1 	(2) facilitate and expedite the responsibilities of the special review board and 
884.2 	end-of-confinement review committees by corrections institutions and state treatment 
884.3 	facilities;
884.4 	(3) prepare, amend, or revise the abuse prevention plans required under section 626.557, 
884.5 	subdivision 14, and individual patient treatment plans required under section 253B.03, 
884.6 	subdivision 7;
884.7 	(4) facilitate the custody, supervision, and transport of individuals transferred between 
884.8 	the Department of Corrections and the Department of Direct Care and Treatment; and
884.9 	(5) effectively monitor and supervise individuals who are under the authority of the 
884.10 	Department of Corrections, the Department of Direct Care and Treatment, and the supervisory 
884.11 	authorities listed in section 13.84, subdivision 1.
884.12 	(c) The state-operated services treatment facility or a designee must make a good faith 
884.13 	effort to obtain written authorization from the patient before releasing information from the 
884.14 	patient's medical record.
884.15 	(d) If the patient refuses or is unable to give informed consent to authorize the release 
884.16 	of information required under this subdivision, the chief executive officer for state-operated 
884.17 	services or a designee shall provide the appropriate and necessary medical and other records. 
884.18 	The chief executive officer or a designee shall comply with the minimum necessary privacy 
884.19 	requirements.
884.20 	(e) The executive board may have access to the National Crime Information Center 
884.21 	(NCIC) database through the Department of Public Safety in support of the public safety 
884.22 	functions described in paragraph (b).

884.23 	EFFECTIVE DATE. This section is effective July 1, 2024.

884.24 	Sec. 16. Minnesota Statutes 2022, section 246.234, as amended by Laws 2024, chapter 
884.25 	79, article 1, section 11, is amended to read:
884.26 	246.234 RECIPROCAL EXCHANGE OF CERTAIN PERSONS.
884.27 	The executive board is hereby authorized with the approval of the governor to enter into 
884.28 	reciprocal agreements with duly authorized authorities of any other another state or states 
884.29 	regarding the mutual exchange, return, and transportation of persons with a mental illness 
884.30 	or developmental disability who are within the confines of one state but have legal residence 
884.31 	or legal settlement for the purposes of relief in another state. Such agreements Any agreement 
885.1 	entered into under this subdivision must not contain provisions conflicting any provision 
885.2 	that conflicts with any law of this state law.

885.3 	EFFECTIVE DATE. This section is effective July 1, 2024.

885.4 	Sec. 17. Minnesota Statutes 2022, section 246.36, as amended by Laws 2024, chapter 79, 
885.5 	article 1, section 14, is amended to read:
885.6 	246.36 ACCEPTANCE OF VOLUNTARY, UNCOMPENSATED SERVICES.
885.7 	For the purpose of carrying out a duty, the executive board shall have authority to may
885.8 	accept uncompensated and voluntary services and to may enter into contracts or agreements 
885.9 	with private or public agencies, organizations, or persons for uncompensated and voluntary 
885.10 	services as the executive board deems practicable. Uncompensated and voluntary services 
885.11 	do not include services mandated by licensure and certification requirements for health care 
885.12 	facilities. The volunteer agencies, organizations, or persons who provide services to residents 
885.13 	of state facilities operated under the authority of the executive board are not subject to the 
885.14 	procurement requirements of chapters 16A and 16C. The agencies, organizations, or persons 
885.15 	may purchase supplies, services, and equipment to be used in providing services to residents 
885.16 	of state facilities through the Department of Administration.

885.17 	EFFECTIVE DATE. This section is effective July 1, 2024.

885.18 	Sec. 18. Minnesota Statutes 2023 Supplement, section 246C.01, is amended to read:
885.19 	246C.01 TITLE.
885.20 	This chapter may be cited as the "Department of Direct Care and Treatment Act."

885.21 	EFFECTIVE DATE. This section is effective July 1, 2024.

885.22 	Sec. 19. Minnesota Statutes 2023 Supplement, section 246C.02, as amended by Laws 
885.23 	2024, chapter 79, article 1, section 19, is amended to read:
885.24 	246C.02 DEPARTMENT OF DIRECT CARE AND TREATMENT; 
885.25 	ESTABLISHMENT.
885.26 		Subdivision 1.Establishment. The Department of Direct Care and Treatment is created
885.27 	as an agency headed by an executive board. An executive board shall head the Department 
885.28 	of Direct Care and Treatment.
886.1 		Subd. 2.Mission. (a) The executive board shall develop and maintain direct care and 
886.2 	treatment in a manner consistent with applicable law, including chapters 13, 245, 246, 246B, 
886.3 	252, 253, 253B, 253C, 253D, 254A, 254B, and 256.
886.4 	(b) The executive board shall provide direct care and treatment services in coordination 
886.5 	with the commissioner of human services, counties, and other vendors.
886.6 		Subd. 3.Direct care and treatment services. Direct Care and Treatment services shall 
886.7 	provide direct care and treatment services that include specialized inpatient programs at 
886.8 	secure treatment facilities, community preparation services, regional treatment centers, 
886.9 	enterprise services, consultative services, aftercare services, community-based services and 
886.10 	programs, transition services, nursing home services, and other services consistent with the 
886.11 	mission of the Department of Direct Care and Treatment state law, including this chapter 
886.12 	and chapters 245, 246, 246B, 252, 253, 253B, 253C, 253D, 254A, 254B, and 256. Direct 
886.13 	Care and Treatment shall provide direct care and treatment services in coordination with 
886.14 	the commissioner of human services, counties, and other vendors.
886.15 		Subd. 4.Statewide services. (a) The administrative structure of state-operated services 
886.16 	must be statewide in character.
886.17 	(b) The state-operated services staff may deliver services at any location throughout the 
886.18 	state.
886.19 		Subd. 5.Department of Human Services as state agency. The commissioner of human 
886.20 	services continues to constitute the "state agency" as defined by the Social Security Act of 
886.21 	the United States and the laws of this state for all purposes relating to mental health and 
886.22 	mental hygiene.

886.23 	EFFECTIVE DATE. This section is effective July 1, 2024.

886.24 	Sec. 20. Minnesota Statutes 2023 Supplement, section 246C.04, as amended by Laws 
886.25 	2024, chapter 79, article 1, section 21, is amended to read:
886.26 	246C.04 TRANSFER OF DUTIES.
886.27 		Subdivision 1.Transfer of duties. (a) Section 15.039 applies to the transfer of duties
886.28 	responsibilities from the Department of Human Services to Direct Care and Treatment
886.29 	required by this chapter.
886.30 	(b) The commissioner of administration, with the governor's approval, shall issue 
886.31 	reorganization orders under section 16B.37 as necessary to carry out the transfer of duties 
886.32 	required by section 246C.03 this chapter. The provision of section 16B.37, subdivision 1, 
887.1 	stating that transfers under section 16B.37 may only be to an agency that has existed for at 
887.2 	least one year does not apply to transfers to an agency created by this chapter.
887.3 	(c) The initial salary for the health systems chief executive officer of the Department of 
887.4 	Direct Care and Treatment is the same as the salary for the health systems chief executive 
887.5 	officer of direct care and treatment at the Department of Human Services immediately before 
887.6 	July 1, 2024.
887.7 		Subd. 2.Transfer of custody of civilly committed persons. The commissioner of 
887.8 	human services shall continue to exercise all authority and responsibility for and retain 
887.9 	custody of persons subject to civil commitment under chapter 253B or 253D until July 1, 
887.10 	2025. Effective July 1, 2025, custody of persons subject to civil commitment under chapter 
887.11 	253B or 253D and in the custody of the commissioner of human services as of that date is 
887.12 	hereby transferred to the executive board without any further act or proceeding. Authority 
887.13 	and responsibility for the commitment of such persons is transferred to the executive board
887.14 	July 1, 2025.
887.15 		Subd. 3.Control of direct care and treatment. The commissioner of human services 
887.16 	shall continue to exercise all authorities and responsibilities under this chapter and chapters 
887.17 	13, 245, 246, 246B, 252, 253, 253B, 253C, 253D, 254A, 254B, and 256, with reference to 
887.18 	any state-operated service, program, or facility subject to transfer under this act until July 
887.19 	1, 2025. Effective July 1, 2025, the powers and duties vested in or imposed upon the 
887.20 	commissioner of human services with reference to any state-operated service, program, or 
887.21 	facility are hereby transferred to, vested in, and imposed upon the executive board according 
887.22 	to this chapter and applicable state law. Effective July 1, 2025, the executive board is hereby 
887.23 	charged with and has the exclusive power of administration and management of all state 
887.24 	hospitals for persons with a developmental disability, mental illness, or substance use 
887.25 	disorder. Effective July 1, 2025, the executive board has the power and authority to determine 
887.26 	all matters relating to the development of all of the foregoing institutions and of such other 
887.27 	institutions vested in the executive board. Effective July 1, 2025, the powers, functions, and 
887.28 	authority vested in the commissioner of human services relative to such state institutions 
887.29 	are hereby transferred to the executive board according to this chapter and applicable state 
887.30 	law.
887.31 		Subd. 4.Appropriations. There is hereby appropriated to such persons or institutions 
887.32 	as are entitled to such sums as are provided for in this section, from the fund or account in 
887.33 	the state treasury to which the money was credited, an amount sufficient to make such 
887.34 	payment.

888.1 	EFFECTIVE DATE. This section is effective July 1, 2024.

888.2 	Sec. 21. Minnesota Statutes 2023 Supplement, section 246C.05, as amended by Laws 
888.3 	2024, chapter 79, article 1, section 22, is amended to read:
888.4 	246C.05 EMPLOYEE PROTECTIONS FOR ESTABLISHING THE NEW 
888.5 	DEPARTMENT OF DIRECT CARE AND TREATMENT.
888.6 	(a) Personnel whose duties relate to the functions assigned to the executive board in 
888.7 	section 246C.03 this chapter are transferred to the Department of Direct Care and Treatment 
888.8 	effective 30 days after approval by the commissioner of management and budget.
888.9 	(b) Before the executive board is appointed, personnel whose duties relate to the functions 
888.10 	in this section chapter may be transferred beginning July 1, 2024, with 30 days' notice from 
888.11 	the commissioner of management and budget.
888.12 	(c) The following protections shall apply to employees who are transferred from the 
888.13 	Department of Human Services to the Department of Direct Care and Treatment:
888.14 	(1) No transferred employee shall have their employment status and job classification 
888.15 	altered as a result of the transfer.
888.16 	(2) Transferred employees who were represented by an exclusive representative prior 
888.17 	to the transfer shall continue to be represented by the same exclusive representative after 
888.18 	the transfer.
888.19 	(3) The applicable collective bargaining agreements with exclusive representatives shall 
888.20 	continue in full force and effect for such transferred employees after the transfer.
888.21 	(4) The state shall have the obligation to meet and negotiate with the exclusive 
888.22 	representatives of the transferred employees about any proposed changes affecting or relating 
888.23 	to the transferred employees' terms and conditions of employment to the extent such changes 
888.24 	are not addressed in the applicable collective bargaining agreement.
888.25 	(5) When an employee in a temporary unclassified position is transferred to the 
888.26 	Department of Direct Care and Treatment, the total length of time that the employee has 
888.27 	served in the appointment shall include all time served in the appointment at the transferring 
888.28 	agency and the time served in the appointment at the Department of Direct Care and 
888.29 	Treatment. An employee in a temporary unclassified position who was hired by a transferring 
888.30 	agency through an open competitive selection process in accordance with a policy enacted 
888.31 	by Minnesota Management and Budget shall be considered to have been hired through such 
888.32 	process after the transfer.
889.1 	(6) In the event that the state transfers ownership or control of any of the facilities, 
889.2 	services, or operations of the Department of Direct Care and Treatment to another entity, 
889.3 	whether private or public, by subcontracting, sale, assignment, lease, or other transfer, the 
889.4 	state shall require as a written condition of such transfer of ownership or control the following 
889.5 	provisions:
889.6 	(i) Employees who perform work in transferred facilities, services, or operations must 
889.7 	be offered employment with the entity acquiring ownership or control before the entity 
889.8 	offers employment to any individual who was not employed by the transferring agency at 
889.9 	the time of the transfer.
889.10 	(ii) The wage and benefit standards of such transferred employees must not be reduced 
889.11 	by the entity acquiring ownership or control through the expiration of the collective 
889.12 	bargaining agreement in effect at the time of the transfer or for a period of two years after 
889.13 	the transfer, whichever is longer.
889.14 	(d) There is no liability on the part of, and no cause of action arises against, the state of 
889.15 	Minnesota or its officers or agents for any action or inaction of any entity acquiring ownership 
889.16 	or control of any facilities, services, or operations of the Department of Direct Care and 
889.17 	Treatment.
889.18 	(e) This section expires upon the completion of the transfer of duties to the executive 
889.19 	board under section 246C.03 this chapter. The commissioner of human services shall notify 
889.20 	the revisor of statutes when the transfer of duties is complete.

889.21 	EFFECTIVE DATE. This section is effective July 1, 2024.

889.22 	Sec. 22. [246C.07] POWERS AND DUTIES OF EXECUTIVE BOARD.
889.23 		Subdivision 1.Generally. (a) The executive board must operate the agency according 
889.24 	to this chapter and applicable state and federal law. The overall management and control 
889.25 	of the agency is vested in the executive board in accordance with this chapter.
889.26 	(b) The executive board must appoint a chief executive officer according to section 
889.27 	246C.08. The chief executive officer is responsible for the administrative and operational 
889.28 	duties of Direct Care and Treatment in accordance with this chapter.
889.29 	(c) The executive board may delegate duties imposed by this chapter and under applicable 
889.30 	state and federal law as deemed appropriate by the board and in accordance with this chapter. 
889.31 	Any delegation of a specified statutory duty or power to an employee of Direct Care and 
889.32 	Treatment other than the chief executive officer must be made by written order and filed 
890.1 	with the secretary of state. Only the chief executive officer shall have the powers and duties 
890.2 	of the executive board as specified in section 246C.08.
890.3 		Subd. 2.Principles. The executive board, in undertaking its duties and responsibilities 
890.4 	and within Direct Care and Treatment resources, shall act according to the following 
890.5 	principles:
890.6 	(1) prevent the waste or unnecessary spending of public money;
890.7 	(2) use innovative fiscal and human resource practices to manage the state's resources 
890.8 	and operate the agency as efficiently as possible;
890.9 	(3) coordinate Direct Care and Treatment activities wherever appropriate with the 
890.10 	activities of other governmental agencies;
890.11 	(4) use technology where appropriate to increase agency productivity, improve customer 
890.12 	service, increase public access to information about government, and increase public 
890.13 	participation in the business of government; and
890.14 	(5) utilize constructive and cooperative labor management practices to the extent 
890.15 	otherwise required by chapter 43A or 179A.
890.16 		Subd. 3.Powers and duties. (a) The executive board has the power and duty to:
890.17 	(1) set the overall strategic direction for Direct Care and Treatment, ensuring that Direct 
890.18 	Care and Treatment delivers exceptional care and supports the well-being of all individuals 
890.19 	served by Direct Care and Treatment;
890.20 	(2) establish policies and procedures to govern the operation of the facilities, programs, 
890.21 	and services under the direct authority of Direct Care and Treatment;
890.22 	(3) employ personnel and delegate duties and responsibilities to personnel as deemed 
890.23 	appropriate by the executive board, subject to chapters 43A and 179A and in accordance 
890.24 	with this chapter;
890.25 	(4) review and approve the operating budget proposal for Direct Care and Treatment;
890.26 	(5) accept and use gifts, grants, or contributions from any nonstate source or refuse to 
890.27 	accept any gift, grant, or contribution if acceptance would not be in the best interest of the 
890.28 	state;
890.29 	(6) deposit all money received as gifts, grants, or contributions pursuant to section 
890.30 	246C.091, subdivision 1;
891.1 	(7) expend or use any gift, grant, or contribution as nearly in accordance with the 
891.2 	conditions of the gift, grant, or contribution identified by the donor for a certain institution 
891.3 	or purpose, compatible with the best interests of the individuals under the jurisdiction of 
891.4 	the executive board and of the state;
891.5 	(8) comply with all conditions and requirements necessary to receive federal aid or block 
891.6 	grants with respect to the establishment, construction, maintenance, equipment, or operation 
891.7 	of adequate facilities and services consistent with the mission of Direct Care and Treatment;
891.8 	(9) enter into information-sharing agreements with federal and state agencies and other 
891.9 	entities, provided the agreements include adequate protections with respect to the 
891.10 	confidentiality and integrity of the information to be shared and comply with all applicable 
891.11 	state and federal laws, regulations, and rules;
891.12 	(10) enter into interagency or service level agreements with a state department listed in 
891.13 	section 15.01; a multimember state agency described in section 15.012, paragraph (a); or 
891.14 	the Department of Information Technology Services;
891.15 	(11) enter into contractual agreements with federally recognized Indian Tribes with a 
891.16 	reservation in Minnesota;
891.17 	(12) enter into contracts with public and private agencies, private and nonprofit 
891.18 	organizations, and individuals using appropriated money;
891.19 	(13) establish and maintain any administrative units reasonably necessary for the 
891.20 	performance of administrative functions common to all programs or divisions of Direct 
891.21 	Care and Treatment;
891.22 	(14) authorize the method of payment to or from Direct Care and Treatment as part of 
891.23 	programs administered by Direct Care and Treatment, including authorization of the receipt 
891.24 	or disbursement of money held by Direct Care and Treatment in a fiduciary capacity as part 
891.25 	of the programs administered by Direct Care and Treatment;
891.26 	(15) inform Tribal Nations and county agencies, on a timely basis, of changes in statute, 
891.27 	rule, federal law, regulation, and policy necessary to Tribal or county agency administration 
891.28 	of Direct Care and Treatment programs and services;
891.29 	(16) report to the legislature on the performance of Direct Care and Treatment operations 
891.30 	and the accomplishment of Direct Care and Treatment goals in its biennial budget in 
891.31 	accordance with section 16A.10, subdivision 1;
891.32 	(17) recommend to the legislature appropriate changes in law necessary to carry out the 
891.33 	principles and improve the performance of Direct Care and Treatment; and
892.1 	(18) exercise all powers reasonably necessary to implement and administer the 
892.2 	requirements of this chapter and applicable state and federal law.
892.3 	(b) The specific enumeration of powers and duties as set forth in this section shall not 
892.4 	be construed as a limitation upon the general transfer of Direct Care and Treatment facilities, 
892.5 	programs, and services from the Department of Human Services to Direct Care and Treatment 
892.6 	under this chapter.
892.7 		Subd. 4.Creation of bylaws. The board may establish bylaws governing its operations 
892.8 	and the operations of Direct Care and Treatment in accordance with this chapter.
892.9 		Subd. 5.Performance of chief executive officer. The governor may request that the 
892.10 	executive board review the performance of the chief executive officer at any time. Within 
892.11 	14 days of receipt of the request, the board must meet and conduct a performance review 
892.12 	as specifically requested by the governor. During the performance review, a representative 
892.13 	of the governor must be included as a voting member of the board for the purpose of the 
892.14 	board's discussions and decisions regarding the governor's request. The board must establish 
892.15 	a performance improvement plan as necessary or take disciplinary or other corrective action, 
892.16 	including dismissal. The executive board must report to the governor on action taken by 
892.17 	the board, including an explanation if no action is deemed necessary.

892.18 	EFFECTIVE DATE. This section is effective July 1, 2024.

892.19 	Sec. 23. [246C.08] CHIEF EXECUTIVE OFFICER; SERVICE; DUTIES.
892.20 		Subdivision 1.Service. (a) The Direct Care and Treatment chief executive officer is 
892.21 	appointed by the executive board, in consultation with the governor, and serves at the 
892.22 	pleasure of the executive board, with the advice and consent of the senate.
892.23 	(b) The chief executive officer shall serve in the unclassified service in accordance with 
892.24 	section 43A.08. The Compensation Council under section 15A.082 shall establish the salary 
892.25 	of the chief executive officer.
892.26 		Subd. 2.Powers and duties. (a) The chief executive officer's primary duty is to assist 
892.27 	the executive board. The chief executive officer is responsible for the administrative and 
892.28 	operational management of the agency.
892.29 	(b) The chief executive officer shall have all the powers of the executive board unless 
892.30 	the executive board directs otherwise. The chief executive officer shall have the authority 
892.31 	to speak for the executive board and Direct Care and Treatment within and outside the 
892.32 	agency.
893.1 	(c) In the event that a vacancy occurs for any reason within the chief executive officer 
893.2 	position, the executive medical director appointed under section 246.018 shall immediately 
893.3 	become the temporary chief executive officer until the executive board appoints a new chief 
893.4 	executive officer. During this period, the executive medical director shall have all the powers 
893.5 	and authority delegated to the chief executive officer by the board and specified in this 
893.6 	chapter.

893.7 	EFFECTIVE DATE. This section is effective July 1, 2024.

893.8 	Sec. 24. [246C.091] DIRECT CARE AND TREATMENT ACCOUNTS.
893.9 		Subdivision 1.Gifts, grants, and contributions account. (a) A gifts, grants, and 
893.10 	contributions account is created in the special revenue fund in the state treasury. All money 
893.11 	received by the executive board as a gift, grant, or contribution must be deposited in the 
893.12 	gifts, grants, and contributions account. Beginning July 1, 2025, except as provided in 
893.13 	paragraph (b), money in the account is annually appropriated to the Direct Care and 
893.14 	Treatment executive board to accomplish the purposes of this chapter. Gifts, grants, or 
893.15 	contributions received by the executive board exceeding current agency needs must be 
893.16 	invested by the State Board of Investment in accordance with section 11A.24. Disbursements 
893.17 	from the gifts, grants, and contributions account must be made in the manner provided for 
893.18 	the issuance of other state payments.
893.19 	(b) If the gift or contribution is designated for a certain person, institution, or purpose, 
893.20 	the Direct Care and Treatment executive board must use the gift or contribution as specified 
893.21 	in accordance with the conditions of the gift or contribution if compatible with the best 
893.22 	interests of the person and the state. If a gift or contribution is accepted for the use and 
893.23 	benefit of a person with a developmental disability, including those within a state hospital, 
893.24 	research relating to persons with a developmental disability must be considered an appropriate 
893.25 	use of the gift or contribution. Such money must not be used for any structures or installations 
893.26 	which by their nature would require state expenditures for their operation or maintenance 
893.27 	without specific legislative enactment.
893.28 		Subd. 2.Facilities management account. A facilities management account is created 
893.29 	in the special revenue fund of the state treasury. Beginning July 1, 2025, money in the 
893.30 	account is appropriated to the Direct Care and Treatment executive board and may be used 
893.31 	to maintain buildings, acquire facilities, renovate existing buildings, or acquire land for the 
893.32 	design and construction of buildings for Direct Care and Treatment use. Money received 
893.33 	for maintaining state property under control of the executive board may be deposited into 
893.34 	this account.
894.1 		Subd. 3.Direct Care and Treatment systems account. (a) The Direct Care and 
894.2 	Treatment systems account is created in the special revenue fund of the state treasury. 
894.3 	Beginning July 1, 2025, money in the account is appropriated to the Direct Care and 
894.4 	Treatment executive board and may be used for security systems and information technology 
894.5 	projects, services, and support under the control of the executive board.
894.6 	(b) The commissioner of human services shall transfer all money allocated to the Direct 
894.7 	Care and Treatment systems projects under section 256.014 to the Direct Care and Treatment 
894.8 	systems account by June 30, 2026.
894.9 		Subd. 4.Cemetery maintenance account. The cemetery maintenance account is created 
894.10 	in the special revenue fund of the state treasury. Money in the account is appropriated to 
894.11 	the executive board for the maintenance of cemeteries under control of the executive board. 
894.12 	Money allocated to Direct Care and Treatment cemeteries may be transferred to this account.

894.13 	EFFECTIVE DATE. This section is effective July 1, 2024.

894.14 	Sec. 25. Minnesota Statutes 2022, section 256.88, is amended to read:
894.15 	256.88 SOCIAL WELFARE FUND ESTABLISHED.
894.16 	Except as otherwise expressly provided, all moneys and funds held by the commissioner 
894.17 	of human services, the Direct Care and Treatment executive board, and the local social 
894.18 	services agencies of the several counties in trust or for the benefit of children with a disability 
894.19 	and children who are dependent, neglected, or delinquent, children born to mothers who 
894.20 	were not married to the children's fathers at the times of the conception nor at the births of 
894.21 	the children, persons determined to have developmental disability, mental illness, or substance 
894.22 	use disorder, or other wards or beneficiaries, under any law, shall be kept in a single fund 
894.23 	to be known as the "social welfare fund" which shall be deposited at interest, held, or 
894.24 	disbursed as provided in sections 256.89 to 256.92.

894.25 	EFFECTIVE DATE. This section is effective July 1, 2024.

894.26 	Sec. 26. Minnesota Statutes 2022, section 256.89, is amended to read:
894.27 	256.89 FUND DEPOSITED IN STATE TREASURY.
894.28 	The social welfare fund and all accretions thereto shall be deposited in the state treasury, 
894.29 	as a separate and distinct fund, to the credit of the commissioner of human services and the 
894.30 	Direct Care and Treatment executive board as trustee trustees for the their respective
894.31 	beneficiaries thereof in proportion to their the beneficiaries' several interests. The 
894.32 	commissioner of management and budget shall be responsible only to the commissioner of 
895.1 	human services and the Direct Care and Treatment executive board for the sum total of the 
895.2 	fund, and shall have no duties nor direct obligations toward the beneficiaries thereof 
895.3 	individually. Subject to the applicable rules of the commissioner of human services or the 
895.4 	Direct Care and Treatment executive board, money so received by a local social services 
895.5 	agency may be deposited by the executive secretary of the local social services agency in 
895.6 	a local bank carrying federal deposit insurance, designated by the local social services 
895.7 	agency for this purpose. The amount of such deposit in each such bank at any one time shall 
895.8 	not exceed the amount protected by federal deposit insurance.

895.9 	EFFECTIVE DATE. This section is effective July 1, 2024.

895.10 	Sec. 27. Minnesota Statutes 2022, section 256.90, is amended to read:
895.11 	256.90 SOCIAL WELFARE FUND; USE; DISPOSITION; DEPOSITORIES.
895.12 	The commissioner of human services, in consultation with the Direct Care and Treatment 
895.13 	executive board, at least 30 days before the first day of January and the first day of July in 
895.14 	each year shall file with the commissioner of management and budget an estimate of the 
895.15 	amount of the social welfare fund to be held in the treasury during the succeeding six-month 
895.16 	period, subject to current disbursement. Such portion of the remainder thereof as may be at 
895.17 	any time designated by the request of the commissioner of human services may be invested 
895.18 	by the commissioner of management and budget in bonds in which the permanent trust 
895.19 	funds of the state of Minnesota may be invested, upon approval by the State Board of 
895.20 	Investment. The portion of such remainder not so invested shall be placed by the 
895.21 	commissioner of management and budget at interest for the period of six months, or when 
895.22 	directed by the commissioner of human services, for the period of 12 months thereafter at 
895.23 	the highest rate of interest obtainable in a bank, or banks, designated by the board of deposit 
895.24 	as a suitable depository therefor. All the provisions of law relative to the designation and 
895.25 	qualification of depositories of other state funds shall be applicable to sections 256.88 to 
895.26 	256.92, except as herein otherwise provided. Any bond given, or collateral assigned or both, 
895.27 	to secure a deposit hereunder may be continuous in character to provide for the repayment 
895.28 	of any moneys belonging to the fund theretofore or thereafter at any time deposited in such 
895.29 	bank until its designation as such depository is revoked and the security thereof shall be not 
895.30 	impaired by any subsequent agreement or understanding as to the rate of interest to be paid 
895.31 	upon such deposit, or as to time for its repayment. The amount of money belonging to the 
895.32 	fund deposited in any bank, including other state deposits, shall not at any time exceed the 
895.33 	amount of the capital stock thereof. In the event of the closing of the bank any sum deposited 
895.34 	therein shall immediately become due and payable.

896.1 	EFFECTIVE DATE. This section is effective July 1, 2024.

896.2 	Sec. 28. Minnesota Statutes 2022, section 256.91, is amended to read:
896.3 	256.91 PURPOSES.
896.4 	From that part of the social welfare fund held in the state treasury subject to disbursement 
896.5 	as provided in section 256.90 the commissioner of human services or the Direct Care and 
896.6 	Treatment executive board at any time may pay out such amounts as the commissioner or 
896.7 	executive board deems proper for the support, maintenance, or other legal benefit of any of 
896.8 	the children with a disability and children who are dependent, neglected, or delinquent, 
896.9 	children born to mothers who were not married to the children's fathers at the times of the 
896.10 	conception nor at the births of the children, persons with developmental disability, substance 
896.11 	use disorder, or mental illness, or other wards or persons entitled thereto, not exceeding in 
896.12 	the aggregate to or for any person the principal amount previously received for the benefit 
896.13 	of the person, together with the increase in it from an equitable apportionment of interest 
896.14 	realized from the social welfare fund.
896.15 	When any such person dies or is finally discharged from the guardianship, care, custody, 
896.16 	and control of the commissioner of human services or the Direct Care and Treatment 
896.17 	executive board, the amount then remaining subject to use for the benefit of the person shall 
896.18 	be paid as soon as may be from the social welfare fund to the persons thereto entitled by 
896.19 	law.

896.20 	EFFECTIVE DATE. This section is effective July 1, 2024.

896.21 	Sec. 29. Minnesota Statutes 2022, section 256.92, is amended to read:
896.22 	256.92 COMMISSIONER OF HUMAN SERVICES AND DIRECT CARE AND 
896.23 	TREATMENT, ACCOUNTS.
896.24 	It shall be the duty of the commissioner of human services, the Direct Care and Treatment 
896.25 	executive board, and of the local social services agencies of the several counties of this state 
896.26 	to cause to be deposited with the commissioner of management and budget all moneys and 
896.27 	funds in their possession or under their control and designated by section 256.91 as and for 
896.28 	the social welfare fund; and all such moneys and funds shall be so deposited in the state 
896.29 	treasury as soon as received. The commissioner of human services, in consultation with the 
896.30 	Direct Care and Treatment executive board, shall keep books of account or other records 
896.31 	showing separately the principal amount received and deposited in the social welfare fund 
896.32 	for the benefit of any person, together with the name of such person, and the name and 
896.33 	address, if known to the commissioner of human services or the Direct Care and Treatment 
897.1 	executive board, of the person from whom such money was received; and, at least once 
897.2 	every two years, the amount of interest, if any, which the money has earned in the social 
897.3 	welfare fund shall be apportioned thereto and posted in the books of account or records to 
897.4 	the credit of such beneficiary.
897.5 	The provisions of sections 256.88 to 256.92 shall not apply to any fund or money now 
897.6 	or hereafter deposited or otherwise disposed of pursuant to the lawful orders, decrees, 
897.7 	judgments, or other directions of any district court having jurisdiction thereof.

897.8 	EFFECTIVE DATE. This section is effective July 1, 2024.

897.9 	Sec. 30. Laws 2023, chapter 61, article 8, section 1, the effective date, is amended to read:

897.10 	EFFECTIVE DATE. This section is effective January July 1, 2025 2024.

897.11 	Sec. 31. Laws 2023, chapter 61, article 8, section 2, the effective date, is amended to read:

897.12 	EFFECTIVE DATE. This section is effective January July 1, 2025 2024.

897.13 	Sec. 32. Laws 2023, chapter 61, article 8, section 3, the effective date, is amended to read:

897.14 	EFFECTIVE DATE. This section is effective January July 1, 2025 2024.

897.15 	Sec. 33. Laws 2023, chapter 61, article 8, section 8, the effective date, is amended to read:

897.16 	EFFECTIVE DATE. This section is effective January July 1, 2025 2024.

897.17 	Sec. 34. Laws 2024, chapter 79, article 1, section 18, is amended to read:
897.18 	Sec. 18. 246C.015 DEFINITIONS.
897.19 		Subdivision 1.Scope. For purposes of this chapter, the following terms have the meanings 
897.20 	given.
897.21 		Subd. 2.Chief executive officer. "Chief executive officer" means the Department of
897.22 	Direct Care and Treatment chief executive officer appointed according to section 246C.08.
897.23 		Subd. 3.Commissioner. "Commissioner" means the commissioner of human services.
897.24 		Subd. 4.Community preparation services. "Community preparation services" means 
897.25 	specialized inpatient or outpatient services operated outside of a secure environment but 
897.26 	administered by a secure treatment facility.
898.1 		Subd. 5.County of financial responsibility. "County of financial responsibility" has 
898.2 	the meaning given in section 256G.02, subdivision 4.
898.3 		Subd. 5a.Direct Care and Treatment. "Direct Care and Treatment" means the agency 
898.4 	of Direct Care and Treatment established under this chapter.
898.5 		Subd. 6.Executive board. "Executive board" means the Department of Direct Care and 
898.6 	Treatment executive board established under section 246C.06.
898.7 		Subd. 7.Executive medical director.  "Executive medical director" means the licensed 
898.8 	physician serving as executive medical director in the Department of Direct Care and 
898.9 	Treatment under section 246C.09.
898.10 		Subd. 8.Head of the facility or head of the program. "Head of the facility" or "head 
898.11 	of the program" means the person who is charged with overall responsibility for the 
898.12 	professional program of care and treatment of the facility or program.
898.13 		Subd. 9.Indian. "Indian" has the meaning given in section 260.755, subdivision 7.
898.14 		Subd. 10.Secure treatment facility. "Secure treatment facility" means a facility as 
898.15 	defined in section 253B.02, subdivision 18a, or 253D.02, subdivision 13.
898.16 		Subd. 11.Tobacco; tobacco-related device. "Tobacco" and "tobacco-related device" 
898.17 	have the meanings given in section 609.685, subdivision 1.

898.18 	EFFECTIVE DATE. This section is effective July 1, 2024.

898.19 	Sec. 35. Laws 2024, chapter 79, article 1, section 23, is amended to read:
898.20 	Sec. 23. 246C.06 EXECUTIVE BOARD; POWERS AND DUTIES MEMBERSHIP; 
898.21 	GOVERNANCE.
898.22 		Subdivision 1.Establishment. The Direct Care and Treatment executive board of the 
898.23 	Department of Direct Care and Treatment is established.
898.24 		Subd. 2.Membership of the executive board. The executive board shall consist of no 
898.25 	more than five members, all appointed by the governor. (a) The Direct Care and Treatment 
898.26 	executive board consists of nine members with seven voting members and two nonvoting 
898.27 	members. The seven voting members must include six members appointed by the governor 
898.28 	with the advice and consent of the senate in accordance with paragraph (b) and the 
898.29 	commissioner of human services or a designee. The two nonvoting members must be 
898.30 	appointed in accordance with paragraph (c). Section 15.0597 applies to all executive board 
898.31 	appointments except for the commissioner of human services.
899.1 	(b) The executive board voting members appointed by the governor must meet the 
899.2 	following qualifications:
899.3 	(1) one member must be a licensed physician who is a psychiatrist or has experience in 
899.4 	serving behavioral health patients;
899.5 	(2) two members must have experience serving on a hospital or nonprofit board; and
899.6 	(3) three members must have experience working: (i) in the delivery of behavioral health 
899.7 	services or care coordination or in traditional healing practices; (ii) as a licensed health care 
899.8 	professional; (iii) within health care administration; or (iv) with residential services.
899.9 	(c) The executive board nonvoting members must be appointed as follows:
899.10 	(1) one member appointed by the Association of Counties; and
899.11 	(2) one member who has an active role as a union representative representing staff at 
899.12 	Direct Care and Treatment appointed by joint representatives of the following unions: 
899.13 	American Federation of State, County and Municipal Employees (AFSCME); Minnesota 
899.14 	Association of Professional Employees (MAPE); Minnesota Nurses Association (MNA); 
899.15 	Middle Management Association (MMA); and State Residential Schools Education 
899.16 	Association (SRSEA).
899.17 	(d) Membership on the board must include representation from outside the seven-county 
899.18 	metropolitan area, as defined in section 473.121, subdivision 2.
899.19 	(e) A voting member of the executive board must not be or must not have been within 
899.20 	one year prior to appointment: (1) an employee of Direct Care and Treatment; (2) an 
899.21 	employee of a county, including a county commissioner; (3) an active employee or 
899.22 	representative of a labor union that represents employees of Direct Care and Treatment; or 
899.23 	(4) a member of the state legislature. This paragraph does not apply to the nonvoting members 
899.24 	or the commissioner of human services or designee.
899.25 		Subd. 3.Qualifications of members Procedures. An executive board member's 
899.26 	qualifications must be appropriate for overseeing a complex behavioral health system, such 
899.27 	as experience serving on a hospital or nonprofit board, serving as a public sector labor union 
899.28 	representative, delivering behavioral health services or care coordination, or working as a 
899.29 	licensed health care provider in an allied health profession or in health care administration.
899.30 	Except as otherwise provided in this section, the membership terms and removal and filling 
899.31 	of vacancies for the executive board are governed by section 15.0575.
899.32 		Subd. 4.Accepting contributions or gifts Compensation. (a) The executive board has 
899.33 	the power and authority to accept, on behalf of the state, contributions and gifts of money 
900.1 	and personal property for the use and benefit of the residents of the public institutions under 
900.2 	the executive board's control. All money and securities received must be deposited in the 
900.3 	state treasury subject to the order of the executive board. Notwithstanding section 15.0575, 
900.4 	subdivision 3, paragraph (a), the nonvoting members of the executive board must not receive 
900.5 	daily compensation for executive board activities. Nonvoting members of the executive 
900.6 	board may receive expenses in the same manner and amount as authorized by the 
900.7 	commissioner's plan adopted under section 43A.18, subdivision 2. Nonvoting members 
900.8 	who, as a result of time spent attending board meetings, incur child care expenses that would 
900.9 	not otherwise have been incurred may be reimbursed for those expenses upon board 
900.10 	authorization.
900.11 	(b) If the gift or contribution is designated by the donor for a certain institution or purpose, 
900.12 	the executive board shall expend or use the money as nearly in accordance with the conditions 
900.13 	of the gift or contribution, compatible with the best interests of the individuals under the 
900.14 	jurisdiction of the executive board and the state. Notwithstanding section 15.0575, subdivision 
900.15 	3, paragraph (a), the Compensation Council under section 15A.082 must determine the 
900.16 	compensation for voting members of the executive board per day spent on executive board 
900.17 	activities authorized by the executive board. Voting members of the executive board may 
900.18 	also receive the expenses in the same manner and amount as authorized by the commissioner's 
900.19 	plan adopted under section 43A.18, subdivision 2. Voting members who, as a result of time 
900.20 	spent attending board meetings, incur child care expenses that would not otherwise have 
900.21 	been incurred may be reimbursed for those expenses upon board authorization.
900.22 	(c) The commissioner of management and budget must publish the daily compensation 
900.23 	rate for voting members of the executive board determined under paragraph (b) on the 
900.24 	Department of Management and Budget's website.
900.25 	(d) Voting members of the executive board must adopt internal standards prescribing 
900.26 	what constitutes a day spent on board activities for the purposes of making payments 
900.27 	authorized under paragraph (b).
900.28 	(e) All other requirements under section 15.0575, subdivision 3, apply to the 
900.29 	compensation of executive board members.
900.30 		Subd. 5.Federal aid or block grants Acting chair; officers. The executive board may 
900.31 	comply with all conditions and requirements necessary to receive federal aid or block grants 
900.32 	with respect to the establishment, constructions, maintenance, equipment, or operation of 
900.33 	adequate facilities and services consistent with the mission of the Department of Direct 
901.1 	Care and Treatment. (a) The governor shall designate one member from the voting 
901.2 	membership appointed by the governor as acting chair of the executive board.
901.3 	(b) At the first meeting of the executive board, the executive board must elect a chair 
901.4 	from among the voting membership appointed by the governor.
901.5 	(c) The executive board must annually elect a chair from among the voting membership 
901.6 	appointed by the governor.
901.7 	(d) The executive board must elect officers from among the voting membership appointed 
901.8 	by the governor. The elected officers shall serve for one year.
901.9 		Subd. 6.Operation of a communication systems account Terms. (a) The executive 
901.10 	board may operate a communications systems account established in Laws 1993, First 
901.11 	Special Session chapter 1, article 1, section 2, subdivision 2, to manage shared 
901.12 	communication costs necessary for the operation of the regional treatment centers the 
901.13 	executive board supervises. Except for the commissioner of human services, executive 
901.14 	board members must not serve more than two consecutive terms unless service beyond two 
901.15 	consecutive terms is approved by the majority of voting members. The commissioner of 
901.16 	human services or a designee shall serve until replaced by the governor.
901.17 	(b) Each account must be used to manage shared communication costs necessary for the 
901.18 	operations of the regional treatment centers the executive board supervises. The executive 
901.19 	board may distribute the costs of operating and maintaining communication systems to 
901.20 	participants in a manner that reflects actual usage. Costs may include acquisition, licensing, 
901.21 	insurance, maintenance, repair, staff time, and other costs as determined by the executive 
901.22 	board. An executive board member may resign at any time by giving written notice to the 
901.23 	executive board.
901.24 	(c) Nonprofit organizations and state, county, and local government agencies involved 
901.25 	in the operation of regional treatment centers the executive board supervises may participate 
901.26 	in the use of the executive board's communication technology and share in the cost of 
901.27 	operation. The initial term of the member appointed under subdivision 2, paragraph (b), 
901.28 	clause (1), is two years. The initial term of the members appointed under subdivision 2, 
901.29 	paragraph (b), clause (2), is three years. The initial term of the members appointed under 
901.30 	subdivision 2, paragraph (b), clause (3), and the members appointed under subdivision 2, 
901.31 	paragraph (c), is four years.
901.32 	(d) The executive board may accept on behalf of the state any gift, bequest, devise, 
901.33 	personal property of any kind, or money tendered to the state for any lawful purpose 
901.34 	pertaining to the communication activities under this section. Any money received for this 
902.1 	purpose must be deposited into the executive board's communication systems account. 
902.2 	Money collected by the executive board for the use of communication systems must be 
902.3 	deposited into the state communication systems account and is appropriated to the executive 
902.4 	board for purposes of this section. After the initial term, the term length of all appointed 
902.5 	executive board members is four years.
902.6 		Subd. 7.Conflicts of interest. Executive board members must recuse themselves from 
902.7 	discussion of and voting on an official matter if the executive board member has a conflict 
902.8 	of interest. A conflict of interest means an association, including a financial or personal 
902.9 	association, that has the potential to bias or have the appearance of biasing an executive 
902.10 	board member's decision in matters related to Direct Care and Treatment or the conduct of 
902.11 	activities under this chapter.
902.12 		Subd. 8.Meetings. The executive board must meet at least four times per fiscal year at 
902.13 	a place and time determined by the executive board.
902.14 		Subd. 9.Quorum. A majority of the voting members of the executive board constitutes 
902.15 	a quorum. The affirmative vote of a majority of the voting members of the executive board 
902.16 	is necessary and sufficient for action taken by the executive board.
902.17 		Subd. 10.Immunity; indemnification. (a) Members of the executive board are immune 
902.18 	from civil liability for any act or omission occurring within the scope of the performance 
902.19 	of their duties under this chapter.
902.20 	(b) When performing executive board duties or actions, members of the executive board 
902.21 	are employees of the state for purposes of indemnification under section 3.736, subdivision 
902.22 	9.
902.23 		Subd. 11.Rulemaking. (a) The executive board is authorized to adopt, amend, and 
902.24 	repeal rules in accordance with chapter 14 to the extent necessary to implement this chapter 
902.25 	or any responsibilities of Direct Care and Treatment specified in state law.
902.26 	(b) Until July 1, 2027, the executive board may adopt rules using the expedited 
902.27 	rulemaking process in section 14.389.
902.28 	(c) In accordance with section 15.039, all orders, rules, delegations, permits, and other 
902.29 	privileges issued or granted by the Department of Human Services with respect to any 
902.30 	function of Direct Care and Treatment and in effect at the time of the establishment of Direct 
902.31 	Care and Treatment shall continue in effect as if such establishment had not occurred. The 
902.32 	executive board may amend or repeal rules applicable to Direct Care and Treatment that 
902.33 	were established by the Department of Human Services in accordance with chapter 14.
903.1 	(d) The executive board must not adopt rules that go into effect or enforce rules prior 
903.2 	to July 1, 2025.

903.3 	EFFECTIVE DATE. This section is effective July 1, 2024.

903.4 	Sec. 36. Laws 2024, chapter 79, article 1, section 24, is amended to read:
903.5 	Sec. 24. 246C.10 FORENSIC SERVICES.
903.6 		Subdivision 1.Maintenance of forensic services. (a) The executive board shall create 
903.7 	and maintain forensic services programs.
903.8 	(b) The executive board must provide forensic services in coordination with counties 
903.9 	and other vendors.
903.10 	(c) Forensic services must include specialized inpatient programs at secure treatment 
903.11 	facilities, consultive services, aftercare services, community-based services and programs, 
903.12 	transition services, nursing home services, or other services consistent with the mission of 
903.13 	the Department of Direct Care and Treatment.
903.14 	(d) The executive board shall may adopt rules to carry out the provision of this section 
903.15 	and to govern the operation of the services and programs under the direct administrative 
903.16 	authority of the executive board.

903.17 	EFFECTIVE DATE. This section is effective July 1, 2024.

903.18 	Sec. 37. Laws 2024, chapter 79, article 1, section 25, subdivision 3, is amended to read:
903.19 		Subd. 3.Comprehensive system of services. The establishment of state-operated, 
903.20 	community-based programs must be within the context of a comprehensive definition of 
903.21 	the role of state-operated services in the state. The role of state-operated services must be 
903.22 	defined within the context of a comprehensive system of services for persons with 
903.23 	developmental disability.

903.24 	EFFECTIVE DATE. This section is effective July 1, 2024.

903.25 	Sec. 38. Laws 2024, chapter 79, article 10, section 1, is amended to read:
903.26 	Section 1. REVISOR INSTRUCTION.
 903.27 	The revisor of statutes shall renumber each provision of Minnesota Statutes listed in 
903.28 	column A as amended in this act to the number listed in column B.

904.1		Column A
	Column B
	
904.2		245.036
	246C.16, subdivision 1
	
904.3		245.037
	246C.16, subdivision 2
	
904.4		245.041
	246C.15
	
904.5		245.474, subdivision 1
	246C.12, subdivision 1
	
904.6		245.474, subdivision 2
	246C.12, subdivision 2
	
904.7		245.474, subdivision 3
	246C.12, subdivision 3
	
904.8		245.474, subdivision 4
	246C.12, subdivision 4
	
904.9		246.0135, paragraph (a)
	246C.18, subdivision 2, paragraph (a)
	
904.10		246.0135, paragraph (b)
	246C.18, subdivision 2, paragraph (b)
	
904.11		246.0135, paragraph (c)
	246C.18, subdivision 2, paragraph (c)
	
904.12		246.0135, paragraph (d)
	246C.18, subdivision 3
	
904.13		246.018, subdivision 1
	246C.09, subdivision 1
	
904.14		246.018, subdivision 2
	246C.09, subdivision 2
	
904.15		246.018, subdivision 3
	246C.09, subdivision 3
	
904.16		246.018, subdivision 4
	246C.09, subdivision 4
	
904.18904.17
		246.12
	246C.06, subdivision 7
246C.07, subdivision 7
	
904.19		246.128
	246C.18, subdivision 1
	
904.20		246.129
	246C.18, subdivision 4
	
904.21		246.14
	246C.16, subdivision 3
	
904.22		246.23, subdivision 2
	246.555, subdivision 1
	
904.23		246.23, subdivision 3
	246.555, subdivision 2
	
904.24		246.23, subdivision 4
	246.555, subdivision 3
	
904.25		246.23, subdivision 5
	246.555, subdivision 4
	
904.26		246.23, subdivision 6
	246.555, subdivision 5
	
904.28904.27
		246.234
	246C.06, subdivision 8
246C.07, subdivision 5
	
904.29		246.24
	246C.16, subdivision 4
	
904.30		246.27
	246C.19
	
904.32904.31
		246.36
	246C.06, subdivision 9
246C.07, subdivision 6
	
904.33904.34		246.41, subdivision 1
	246C.06, subdivision 10, paragraph 
(a)
	
904.35904.36		246.41, subdivision 2
	246C.06, subdivision 10, paragraph 
(b)
	
904.37904.38		246.41, subdivision 3
	246C.06, subdivision 10, paragraph 
(c)
	
904.39		246.70
	246C.18, subdivision 5
	
904.40		246B.02
	246C.13
	
905.1		251.012, subdivision 1
	246.575, subdivision 1
	
905.2		251.012, subdivision 2
	246.575, subdivision 2
	
905.3		251.012, subdivision 3
	246.575, subdivision 3
	
905.4		251.012, subdivision 4
	246.575, subdivision 4
	
905.5		251.041
	176.87
	
905.6		251.042
	176.871
	
905.7		251.043, subdivision 1
	176.872, subdivision 1
	
905.8		251.043, subdivision 1a
	176.872, subdivision 2
	
905.9		251.043, subdivision 1b
	176.872, subdivision 3
	
905.10		251.043, subdivision 2
	176.872, subdivision 4
	
905.11		251.043, subdivision 3
	176.872, subdivision 5
	
905.12		251.044
	176.873
	
905.13		251.051
	176.874
	
905.14		251.052
	176.875
	
905.15		251.053
	176.876
	
905.16		251.15, subdivision 1
	176.872, subdivision 6, paragraph (a)
	
905.17		251.15, subdivision 2
	176.872, subdivision 6, paragraph (b)
	
905.18		251.17
	246C.14
	
905.19		252.50, subdivision 2
	246C.16, subdivision 5
	
905.20		252.50, subdivision 4
	246C.10, subdivision 2
	
905.21		252.50, subdivision 6
	246.65
	
905.22		252.50, subdivision 7
	246.585
	
905.23		252.50, subdivision 8
	246.588
	
905.24		252.50, subdivision 10
	246.611
	
905.25		253.015, subdivision 1
	253B.10, subdivision 6
	
905.26		253.016
	246.554
	
905.27		253.017, subdivision 1
	246.591
	
905.28		253.017, subdivision 2
	246C.10, subdivision 3
	
905.29		253.017, subdivision 3
	246C.10, subdivision 4
	
905.30		253.13
	253.245
	
905.31		253C.01, subdivision 1
	245A.27, subdivision 1
	
905.32		253C.01, subdivision 2
	245A.27, subdivision 2
	
905.33		253C.01, subdivision 3
	245A.27, subdivision 3
	
905.34		256.0121, subdivision 1
	246.595, subdivision 1
	
905.35		256.0121, subdivision 2
	246.595, subdivision 2
	
905.36		256.0121, subdivision 3
	246.595, subdivision 3

906.1 	Sec. 39. Laws 2024, chapter 79, article 10, section 6, is amended to read:
906.2 	Sec. 6. EFFECTIVE DATE.
 906.3 	(a) Article 1, section 23, is effective July 1, 2024. This act is effective July 1, 2024.
906.4 	(b) Article 1, sections 1 to 22 and 24 to 31, and articles 2 to 10 are effective January 1, 
906.5 	2025.

906.6 	Sec. 40. DIRECT CARE AND TREATMENT ADVISORY COMMITTEE.
 906.7 	(a) The Direct Care and Treatment executive board under Minnesota Statutes, section 
906.8 	246C.07, shall establish an advisory committee to provide state legislators, counties, union 
906.9 	representatives, the National Alliance on Mental Illness Minnesota, people being served by 
906.10 	direct care and treatment programs, and other stakeholders the opportunity to advise the 
906.11 	executive board regarding the operation of Direct Care and Treatment.
906.12 	(b) The members of the advisory committee must be appointed as follows:
906.13 	(1) one member appointed by the speaker of the house;
906.14 	(2) one member appointed by the minority leader of the house of representatives;
906.15 	(3) two members appointed by the senate Committee on Committees, one member 
906.16 	representing the majority caucus and one member representing the minority caucus;
906.17 	(4) one member appointed by the Association of Minnesota Counties;
906.18 	(5) one member appointed by joint representatives of the American Federation of State 
906.19 	and Municipal Employees, the Minnesota Association of Professional Employees, the 
906.20 	Minnesota Nurses Association, the Middle Management Association, and the State 
906.21 	Residential Schools Education Association;
906.22 	(6) one member appointed by the National Alliance on Mental Illness Minnesota; and
906.23 	(7) two members representing people with lived experience being served by state-operated 
906.24 	treatment programs or their families, appointed by the governor.
906.25 	(c) Appointing authorities under paragraph (b) shall make appointments by January 1, 
906.26 	2026.
906.27 	(d) The first meeting of the advisory committee must be held no later than January 15, 
906.28 	2026. The members of the advisory committee shall elect a chair from among their 
906.29 	membership at the first meeting. The advisory committee shall meet as frequently as it 
906.30 	determines necessary.
907.1 	(e) The executive board shall regularly consult with the advisory committee.
907.2 	(f) The advisory committee under this section expires December 31, 2027.

907.3 	Sec. 41. INITIAL APPOINTMENTS AND COMPENSATION OF THE DIRECT 
907.4 	CARE AND TREATMENT EXECUTIVE BOARD AND CHIEF EXECUTIVE 
907.5 	OFFICER.
 907.6 		Subdivision 1.Executive board. (a) The initial appointments of the members of the 
907.7 	Direct Care and Treatment executive board under Minnesota Statutes, section 246C.06, 
907.8 	must be made by January 1, 2025.
907.9 	(b) Prior to the first Compensation Council determination of the daily compensation rate 
907.10 	for voting members of the executive board under Minnesota Statutes, section 246C.06, 
907.11 	subdivision 4, paragraph (b), voting members of the executive board must be paid the per 
907.12 	diem rate provided for in Minnesota Statutes, section 15.0575, subdivision 3, paragraph (a).
907.13 	(c) The executive board is exempt from Minnesota Statutes, section 13D.01, until the 
907.14 	authority and responsibilities for Direct Care and Treatment are transferred to the executive 
907.15 	board in accordance with Minnesota Statutes, section 246C.04.
907.16 		Subd. 2.Chief executive officer. (a) The Direct Care and Treatment executive board 
907.17 	must appoint as the initial chief executive officer for Direct Care and Treatment under 
907.18 	Minnesota Statutes, section 246C.07, the chief executive officer of the direct care and 
907.19 	treatment division of the Department of Human Services holding that position at the time 
907.20 	the initial appointment is made by the board. The initial appointment of the chief executive 
907.21 	officer must be made by the executive board by July 1, 2025. The initial appointment of 
907.22 	the chief executive officer is subject to confirmation by the senate.
907.23 	(b) In its report issued April 1, 2025, the Compensation Council under Minnesota Statutes, 
907.24 	section 15A.082, must establish the salary of the chief executive officer at an amount equal 
907.25 	to or greater than the amount paid to the chief executive officer of the direct care and 
907.26 	treatment division of the Department of Human Services as of the date of initial appointment. 
907.27 	The salary of the chief executive officer shall become effective July 1, 2025, pursuant to 
907.28 	Minnesota Statutes, section 15A.082, subdivision 3. Notwithstanding Minnesota Statutes, 
907.29 	sections 15A.082 and 246C.08, subdivision 1, if the initial appointment of the chief executive 
907.30 	officer occurs prior to the effective date of the salary specified by the Compensation Council 
907.31 	in its April 1, 2025, report, the salary of the chief executive officer must equal the amount 
907.32 	paid to the chief executive officer of the direct care and treatment division of the Department 
907.33 	of Human Services as of the date of initial appointment.
908.1 		Subd. 3.Commissioner of human services to consult. In preparing the budget estimates 
908.2 	required under Minnesota Statutes, section 16A.10, for the direct care and treatment division 
908.3 	for the 2026-2027 biennial budget and any legislative proposals for the 2025 legislative 
908.4 	session that involve direct care and treatment operations, the commissioner of human services 
908.5 	must consult with the Direct Care and Treatment executive board before submitting the 
908.6 	budget estimates or legislative proposals. If the executive board is not appointed by the date 
908.7 	the budget estimates must be submitted to the commissioner of management and budget, 
908.8 	the commissioner of human services must provide the executive board with a summary of 
908.9 	the budget estimates that were submitted.

908.10 	EFFECTIVE DATE. This section is effective July 1, 2024.

908.11 	Sec. 42. REVISOR INSTRUCTION.
 908.12 	The revisor of statutes shall change the term "Department of Human Services" to "Direct 
908.13 	Care and Treatment" wherever the term appears in respect to the governmental entity with 
908.14 	programmatic direction and fiscal control over state-operated services, programs, or facilities 
908.15 	under Minnesota Statutes, chapter 246C. The revisor may make technical and other necessary 
908.16 	changes to sentence structure to preserve the meaning of the text.

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

908.18 	Sec. 43. REVISOR INSTRUCTION.
 908.19 	The revisor of statutes shall change the term "Department of Direct Care and Treatment" 
908.20 	to "Direct Care and Treatment" wherever the term appears in respect to the governmental 
908.21 	entity with programmatic direction and fiscal control over state-operated services, programs, 
908.22 	or facilities under Minnesota Statutes, chapter 246C. The revisor may make technical and 
908.23 	other necessary changes to sentence structure to preserve the meaning of the text.

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

908.25 	Sec. 44. REVISOR INSTRUCTION.
 908.26 	The revisor of statutes, in consultation with the House Research Department; the Office 
908.27 	of Senate Counsel, Research, and Fiscal Analysis; the Department of Human Services; and 
908.28 	Direct Care and Treatment, shall make necessary cross-reference changes to conform with 
908.29 	this act. The revisor may make technical and other necessary changes to sentence structure 
908.30 	to preserve the meaning of the text. The revisor may alter the coding in this act to incorporate 
908.31 	statutory changes made by other law in the 2024 regular legislative session.

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

909.2 	Sec. 45. REPEALER.
 909.3 	(a) Minnesota Statutes 2022, sections 246.41; and 253C.01, are repealed.
909.4 	(b) Minnesota Statutes 2023 Supplement, section 246C.03, is repealed.

909.5 	EFFECTIVE DATE. This section is effective July 1, 2024.

909.6 	ARTICLE 51
909.7 	MISCELLANEOUS

909.8 	Section 1. FREE COMMUNICATION SERVICES.
909.9 		Subdivision 1.Free communication services. (a) A facility must provide patients and 
909.10 	clients with voice communication services. A facility may supplement voice communication 
909.11 	services with other communication services, including but not limited to video 
909.12 	communication and email or electronic messaging services. A facility must continue to 
909.13 	offer the services the facility offered as of January 1, 2024.
909.14 	(b) To the extent that voice or other communication services are provided, which must 
909.15 	not be limited beyond program participation and routine facility policies and procedures, 
909.16 	neither the individual initiating the communication nor the individual receiving the 
909.17 	communication must be charged for the service.
909.18 		Subd. 2.Communication services restrictions. Nothing in this section allows a patient 
909.19 	or client to violate an active protection order, harassment restraining order, or other no-contact 
909.20 	order or directive. Nothing in this section entitles a civilly committed person to 
909.21 	communication services restricted or limited under Minnesota Statutes, section 253B.03, 
909.22 	subdivision 3, or 253D.19.
909.23 		Subd. 3.Revenue prohibited. Direct Care and Treatment must not receive revenue 
909.24 	from the provision of voice communication services or any other communication services 
909.25 	under this section.
909.26 		Subd. 4.Visitation programs. (a) Facilities shall maintain in-person visits for  patients 
909.27 	or clients. Communication services, including video calls, must not be used to replace a 
909.28 	facility's in-person visitation program or be counted toward a patient's or client's in-person 
909.29 	visitation limit.
909.30 	(b) Notwithstanding paragraph (a), the Direct Care and Treatment executive board may 
909.31 	waive the in-person visitation program requirement under this subdivision if there is:
910.1 	(1) a declared emergency under Minnesota Statutes, section 12.31; or
910.2 	(2) a local-, state-, or federal-declared natural disaster.
910.3 		Subd. 5.Reporting. (a) By January 15, 2026, the Direct Care and Treatment executive 
910.4 	board must report the information described in paragraph (b) to the chairs and ranking 
910.5 	minority members of the legislative committees having jurisdiction over human services 
910.6 	policy and finance.
910.7 	(b) The Direct Care and Treatment executive board must include the following 
910.8 	information covering fiscal year 2024:
910.9 	(1) the status of all the agency's communication contracts; efforts to renegotiate the 
910.10 	agency's communication contracts, including the rates the agency is paying or charging  
910.11 	confined people or community members for any and all services in the contracts; and plans 
910.12 	to consolidate the agency's communication contracts to maximize purchasing power;
910.13 	(2) a complete and detailed accounting of how appropriated funds for communication 
910.14 	services are spent, including spending on expenses previously covered by commissions; 
910.15 	and
910.16 	(3) summary data on usage of all communication services, including monthly call and 
910.17 	message volume.
910.18 		Subd. 6.Definitions. For the purposes of this section, the following terms have the 
910.19 	meanings given:
910.20 	(1) "voice communications" means real-time, audio-only communication services, 
910.21 	namely phone calls made over wireline telephony, voice over Internet protocol, or any other 
910.22 	technology infrastructure;
910.23 	(2) "other communication services" means communication services other than voice 
910.24 	communications, including but not limited to video calls and electronic messages; and
910.25 	(3) "facility" means any facility, setting, or program owned, operated, or under the 
910.26 	programmatic or fiscal control of Direct Care and Treatment.
910.27 		Subd. 7.Expiration. Subdivisions 1 to 4 expire June 30, 2026. Subdivisions 5 and 6 
910.28 	expire upon submission by the Direct Care and Treatment executive board of the report to 
910.29 	the legislature required under subdivision 5.

911.1 	Sec. 2. COMMUNITY CARE HUB PLANNING GRANT.
 911.2 		Subdivision 1.Establishment. The commissioner of health shall establish a single grant 
911.3 	to develop and design programs to expand and strengthen the community care hub model, 
911.4 	which organizes and supports a network of health and social care service providers to address 
911.5 	health-related social needs.
911.6 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
911.7 	meanings given.
911.8 	(b) "Community-based organization" means a public or private nonprofit organization 
911.9 	of demonstrated effectiveness that is representative of a community or significant segments 
911.10 	of a community and provides educational or related services to individuals in the community.
911.11 	(c) "Community care hub" means a nonprofit organization that provides a centralized 
911.12 	administrative and operational interface between health care institutions and a network of 
911.13 	community-based organizations that provide health promotion and social care services.
911.14 	(d) "Health-related social needs" means the individual-level, adverse social conditions 
911.15 	that can negatively impact a person's health or health care, such as poor health literacy, food 
911.16 	insecurity, housing instability, and lack of access to transportation.
911.17 	(e) "Social care services" means culturally informed services to address health-related 
911.18 	social needs and community-informed health promotion programs.
911.19 		Subd. 3.Eligible applicants. To be eligible for the single grant available under this 
911.20 	section, a grant applicant must:
911.21 	(1) be recognized as a selected community care hub by the federal Administration for 
911.22 	Community Living and the Centers for Disease Control and Prevention;
911.23 	(2) hold contracts with health plans within Minnesota that allow the applicant to provide 
911.24 	social care services to a plan's covered member population; and
911.25 	(3) demonstrate active engagement in providing, coordinating, and aiding health care 
911.26 	and social care services at the community level.
911.27 		Subd. 4.Eligible uses. The grantee must use awarded funding to develop and design 
911.28 	programs that support the development of a social care network that provides services to 
911.29 	address health-related social needs. Activities eligible for funding under this section include 
911.30 	but are not limited to education activities, feasibility studies, program design, and pilots.

911.31 	EFFECTIVE DATE. This section is effective July 1, 2024.

912.1 	Sec. 3. DIRECTION TO COMMISSIONER; FEDERAL WAIVERS FOR 
912.2 	HEALTH-RELATED SOCIAL NEEDS.
 912.3 	(a) The commissioner of human services shall develop a strategy to implement 
912.4 	interventions to address unmet health-related social needs, including but not limited to 
912.5 	nutrition support, housing support, case management, and violence prevention. In developing 
912.6 	such a strategy, the commissioner shall consider whether services could be reimbursed 
912.7 	under section 1115 of the Social Security Act, other federal waivers, or existing state 
912.8 	authority.
912.9 	(b) The commissioner shall collaborate with the commissioner of health, communities 
912.10 	most impacted by health disparities, and other external partners providing services in 
912.11 	nutrition, housing, case management, and violence prevention to medical assistance recipients 
912.12 	on specific interventions to include in the proposed strategy.
912.13 	(c) By March 1, 2025, the commissioner shall provide the strategy developed under this 
912.14 	section to the chairs and ranking minority members of the legislative committees with 
912.15 	jurisdiction over health care finance and must include:
912.16 	(1) a proposed timeline for implementation;
912.17 	(2) an estimate of the administrative and programmatic costs associated with 
912.18 	implementing and evaluating any proposed federal waivers; and
912.19 	(3) any statutory changes necessary to seek ongoing state funding and federal authority 
912.20 	for the proposed strategies.
912.21 	(d) The commissioner may perform the steps necessary to develop a federal waiver or 
912.22 	other strategies identified in paragraph (c) in preparation for enactment of the strategies.
912.23 	(e) The commissioner is exempt from the requirements of Minnesota Statutes, chapter 
912.24 	16C, when entering into a new contract or amending an existing contract to complete the 
912.25 	work under this section.

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

912.27 	Sec. 4. WORKING GROUP ON SIMPLIFYING SUPPORTIVE HOUSING 
912.28 	RESOURCES.
 912.29 		Subdivision 1.Establishment. A working group on simplifying supportive housing 
912.30 	resources is established to streamline access, eligibility, and administration of state-funded 
912.31 	supportive housing resources for people experiencing homelessness.
913.1 		Subd. 2.Membership. (a) The working group must prioritize membership from 
913.2 	individuals and organizations that use or administer state-funded supportive housing resources 
913.3 	and must include the following:
913.4 	(1) the commissioner of the Minnesota Housing Finance Agency or designee;
913.5 	(2) the commissioner of human services or designee;
913.6 	(3) two representatives with lived experience from the Minnesota Coalition for the 
913.7 	Homeless;
913.8 	(4) one representative from Hearth Connection;
913.9 	(5) one representative from the Metropolitan Urban Indian Directors network;
913.10 	(6) one representative from the Minnesota Housing Stability Coalition;
913.11 	(7) five representatives from organizations providing or administering state-funded 
913.12 	supportive housing resources to people experiencing homelessness, including organizations 
913.13 	that provide services to youth experiencing homelessness, veterans experiencing 
913.14 	homelessness, populations that disproportionately experience homelessness, and a provider 
913.15 	that participates in a coordinated entry system and demonstrates statewide geographic 
913.16 	representation;
913.17 	(8) one representative from the Minnesota Tribal Collaborative;
913.18 	(9) one representative from Hennepin County;
913.19 	(10) one representative from St. Louis County;
913.20 	(11) two members from the house of representatives, one appointed by the speaker of 
913.21 	the house and one appointed by the minority leader; and
913.22 	(12) two members from the senate appointed by the senate committee on committees, 
913.23 	one representing the majority caucus and one representing the minority caucus.
913.24 	(b) The members listed in paragraph (a), clauses (3) to (10), must be appointed by the 
913.25 	commissioner of human services in collaboration with the commissioner of the Minnesota 
913.26 	Housing Finance Agency.
913.27 	(c) All appointing authorities must make their appointments to the working group by 
913.28 	August 1, 2024.
913.29 		Subd. 3.Duties. (a) The working group must study supportive housing resources to 
913.30 	streamline access, eligibility, and administration of state-funded supportive housing resources 
913.31 	for people experiencing homelessness, including the following programs:
914.1 	(1) the housing support program;
914.2 	(2) long-term homeless supportive services;
914.3 	(3) housing with supports for adults with serious mental illness;
914.4 	(4) the housing trust fund; and
914.5 	(5) other capital and operating funds administered by the Minnesota Housing Finance 
914.6 	Agency.
914.7 	(b) In studying supportive housing resources, the working group must identify the 
914.8 	processes, procedures, and technological or personnel resources that would be necessary to 
914.9 	enable the state, county or Tribal agencies, and providers responsible for administering 
914.10 	public supportive housing funds to meet the following goals:
914.11 	(1) reduce administrative complexities;
914.12 	(2) enhance equity and accessibility, including coordinated entry;
914.13 	(3) streamline and simplify eligibility criteria, paperwork, and funding distribution; and
914.14 	(4) accelerate the transition of individuals from homelessness to sustainable long-term 
914.15 	solutions.
914.16 		Subd. 4.Compensation. Notwithstanding Minnesota Statutes, section 15.059, subdivision 
914.17 	3, members of the working group shall not be compensated, except for the members with 
914.18 	lived experience of homelessness.
914.19 		Subd. 5.Meetings; facilitation. (a) The commissioner of human services may contract 
914.20 	with a third-party vendor to facilitate the working group and convene the first meeting by 
914.21 	January 15, 2025.
914.22 	(b) The working group must meet at regular intervals as often as necessary to fulfill the 
914.23 	duties under subdivision 3.
914.24 	(c) Meetings of the working group are subject to the Minnesota Open Meeting Law 
914.25 	under Minnesota Statutes, chapter 13D.
914.26 		Subd. 6.Consultation. The working group must consult with other individuals and 
914.27 	organizations that have expertise and experience in providing supportive services that may 
914.28 	assist the working group in fulfilling its responsibilities, including entities engaging in 
914.29 	additional input from those with lived experience of homelessness and administrators of 
914.30 	state-funded supportive housing not included on the working group.
915.1 		Subd. 7.Report required. The working group shall submit a final report by January 
915.2 	15, 2026, to the chairs and ranking minority members of the legislative committees with 
915.3 	jurisdiction over housing and homelessness finance and policy detailing the recommendations 
915.4 	to streamline access, eligibility, and administration of state-funded supportive housing 
915.5 	resources for people experiencing homelessness. The report shall include draft legislation 
915.6 	required to implement the proposed legislation.
915.7 		Subd. 8.Expiration. The working group expires January 15, 2026.

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

915.9 	Sec. 5. HOMELESSNESS PRIORITY; HOMELESSNESS REPORT.
 915.10 	The governor and lieutenant governor and the legislature find that addressing 
915.11 	homelessness is a pressing public need. The Department of Human Services administers 
915.12 	programs to provide shelter, support services, and housing stability to low-income 
915.13 	Minnesotans and people experiencing homelessness. No later than January 15, 2025, the 
915.14 	commissioner, in cooperation with the commissioner of the Minnesota Housing Finance 
915.15 	Agency and other relevant departments, must report to the chairs and ranking minority 
915.16 	members of the legislative committees with jurisdiction over human services policy and 
915.17 	finance on the departments' activities to reduce homelessness.

915.18 	Sec. 6. DIRECTION TO COMMISSIONER; TARGETED CASE MANAGEMENT 
915.19 	REDESIGN.
 915.20 	The commissioner of human services must consult with members of the Minnesota 
915.21 	Association of County Social Service Administrators to improve case management 
915.22 	information systems and identify the necessary changes needed to comply with regulations 
915.23 	related to federal certified public expenditures. The changes must facilitate transition to use 
915.24 	of a 15-minute unit rate or improved financial reporting for fee-for-service targeted case 
915.25 	management services provided by counties. The Social Service Information System and 
915.26 	adjacent systems must be modified to support any increase in the intensity of time reporting 
915.27 	requirements prior to any implementation of proposed changes to targeted case management 
915.28 	rate setting, reimbursement, and reconciliation processes.

915.29 	Sec. 7. REVISOR INSTRUCTION.
 915.30 	The revisor of statutes shall renumber each section of Minnesota Statutes listed in column 
915.31 	A with the number listed in column B. The revisor shall also make necessary cross-reference 
915.32 	changes consistent with the renumbering:

916.1		Column A
	Column B
	
916.2		256E.33
	256K.48
	
916.3		256E.36
	256K.49

916.4 	ARTICLE 52
916.5 	HUMAN SERVICES RESPONSE CONTINGENCY ACCOUNT

916.6 	Section 1. [256.044] HUMAN SERVICES RESPONSE CONTINGENCY ACCOUNT.
916.7 		Subdivision 1.Human services response contingency account. A human services 
916.8 	response contingency account is created in the special revenue fund in the state treasury. 
916.9 	Money in the human services response contingency account does not cancel and is 
916.10 	appropriated to the commissioner of human services for the purposes specified in this section.
916.11 		Subd. 2.Definition. For purposes of this section, "human services response" means 
916.12 	activities deemed necessary by the commissioner of human services to respond to emerging 
916.13 	or immediate needs related to supporting the health, welfare, or safety of people.
916.14 		Subd. 3.Use of money. (a) The commissioner may make expenditures from the human 
916.15 	services response contingency account to respond to needs as defined in subdivision 2 and 
916.16 	for which no other funding or insufficient funding is available.
916.17 	(b) When the commissioner determines that a human services response is needed, the 
916.18 	commissioner may make expenditures from the human services response contingency 
916.19 	account for the following uses to implement the human services response:
916.20 	(1) services, supplies, and equipment to support the health, welfare, or safety of people;
916.21 	(2) training and coordination with service providers, Tribal Nations, and local government 
916.22 	entities;
916.23 	(3) communication with and outreach to impacted people;
916.24 	(4) informational technology; and
916.25 	(5) staffing.
916.26 	(c) The commissioner may transfer money within the Department of Human Services 
916.27 	and to the Department of Children, Youth, and Families for eligible uses under paragraph 
916.28 	(b) as necessary to implement a human services response.
916.29 	(d) Notwithstanding any other law or rule to the contrary, when implementing a human 
916.30 	services response, the commissioner may allocate funds from the human services response 
916.31 	contingency account to programs, providers, and organizations for eligible uses under 
917.1 	paragraph (b) through one or more fiscal agents chosen by the commissioner. In contracting 
917.2 	with a fiscal agent, the commissioner may use a sole-source contract and is not subject to 
917.3 	the solicitation requirements of chapter 16B or 16C.
917.4 	(e) Programs, providers, and organizations receiving funds from the human services 
917.5 	response contingency account under paragraph (d) must describe how the money will be 
917.6 	used. If a program, provider, or organization receiving money from the human services 
917.7 	response contingency account receives money from a nonstate source other than a local unit 
917.8 	of government or Tribe for the same human services response, the entity must notify the 
917.9 	commissioner of the amount received from the nonstate source. If the commissioner 
917.10 	determines that the total amount received under this section and from the nonstate source 
917.11 	exceeds the entity's total costs for the human services response, the entity must pay the 
917.12 	commissioner the amount that exceeds the costs up to the amount of funding provided to 
917.13 	the entity under this section. All money paid to the commissioner under this paragraph must 
917.14 	be deposited in the human services response contingency account.
917.15 		Subd. 4.Assistance from other sources. (a) As a condition of making expenditures 
917.16 	from the human services response contingency account, the commissioner must seek any 
917.17 	appropriate assistance from other available sources, including the federal government, to 
917.18 	assist with costs attributable to the human services response.
917.19 	(b) If the commissioner recovers eligible costs for the human services response from a 
917.20 	nonstate source after making expenditures from the human services response contingency 
917.21 	account, the commissioner shall reimburse the human services response contingency account 
917.22 	for those costs up to the amount recovered for eligible costs from the nonstate source.
917.23 		Subd. 5.Reporting. The commissioner must develop required reporting for entities 
917.24 	receiving human services response contingency account money. Entities receiving money 
917.25 	from the commissioner of human services from the human services response contingency 
917.26 	account must submit reports to the commissioner of human services with detailed information 
917.27 	in a manner determined by the commissioner, including but not limited to:
917.28 	(1) amounts expended by category of expenditure;
917.29 	(2) outcomes achieved, including estimated individuals served;
917.30 	(3) documentation necessary to verify that funds were spent in compliance with this 
917.31 	section;
917.32 	(4) expenditure reports for the purpose of requesting reimbursement from other available 
917.33 	sources; and
918.1 	(5) data necessary to comply with an audit of human services response contingency 
918.2 	account expenditures.
918.3 		Subd. 6.Report. By March 1 of each year, the commissioner shall submit a report to 
918.4 	the chairs and ranking minority members of the house of representatives and senate 
918.5 	committees with jurisdiction over human services finance and health and human services 
918.6 	finance detailing expenditures made in the previous calendar year from the human services 
918.7 	response contingency account. This report is exempt from section 256.01, subdivision 42.

918.8 	ARTICLE 53
918.9 	APPROPRIATIONS

918.10	Section 1. HUMAN SERVICES APPROPRIATION.
 	
918.11 	The sums shown in the columns marked "Appropriations" are added to or, if shown in 
918.12 	parentheses, subtracted from the appropriations in Laws 2023, chapter 61, article 9; Laws 
918.13 	2023, chapter 70, article 20; and Laws 2023, chapter 74, section 6, to the agencies and for 
918.14 	the purposes specified in this article. The appropriations are from the general fund or other 
918.15 	named fund and are available for the fiscal years indicated for each purpose. The figures 
918.16 	"2024" and "2025" used in this article mean that the addition to or subtraction from the 
918.17 	appropriation listed under them is available for the fiscal year ending June 30, 2024, or June 
918.18 	30, 2025, respectively. Base adjustments mean the increase or decrease of the base level 
918.19 	adjustment set in Laws 2023, chapter 61, article 9; Laws 2023, chapter 70, article 20; and 
918.20 	Laws 2023, chapter 74, section 6. Supplemental appropriations and reductions to 
918.21 	appropriations for the fiscal year ending June 30, 2024, are effective the day following final 
918.22 	enactment unless a different effective date is explicit.

918.23				APPROPRIATIONS
	
918.24				Available for the Year
	
918.25				Ending June 30
	
918.26					2024
		2025

918.27
918.28	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

918.29	Subdivision 1.Total Appropriation
 	$
	(17,213,000)
	$
	63,804,000
	
918.30 	The amounts that may be spent for each 
918.31 	purpose are specified in the following 
918.32 	subdivisions.

918.33	Subd. 2.Central Office; Operations
 		(4,299,000)
		2,172,000
	
919.1 	(a) Carryforward Authority.
919.2 	Notwithstanding Minnesota Statutes, section 
919.3 	16A.28, subdivision 3, $912,000 in fiscal year 
919.4 	2025 is available until June 30, 2027.
919.5 	(b) Base Level Adjustment. The general fund 
919.6 	base is increased by $327,000 in fiscal year 
919.7 	2026 and $327,000 in fiscal year 2027.

919.8	Subd. 3.Central Office; Health Care
 		-0-
		2,035,000
	
919.9 	(a) Health-Related Social Needs 1115 
919.10 	Waiver. $500,000 is for a contract to develop 
919.11 	a 1115 waiver related to nutrition supports as 
919.12 	a covered service under medical assistance. 
919.13 	This is a onetime appropriation. 
919.14 	Notwithstanding Minnesota Statutes, section 
919.15 	16A.28, subdivision 3, this appropriation is 
919.16 	available until June 30, 2027.
919.17 	(b) Carryforward Authority.
919.18 	Notwithstanding Minnesota Statutes, section 
919.19 	16A.28, subdivision 3, $327,000 in fiscal year 
919.20 	2025 is available until June 30, 2026, and 
919.21 	$543,000 in fiscal year 2025 is available until 
919.22 	June 30, 2027.
919.23 	(c) Base Level Adjustment. The general fund 
919.24 	base is increased by $786,000 in fiscal year 
919.25 	2026 and increased by $790,000 in fiscal year 
919.26 	2027.

919.27
919.28	Subd. 4.Central Office; Aging and Disability 
Services
 		(2,664,000)
		4,164,000
	
919.29 	(a) Tribal Vulnerable Adult and 
919.30 	Developmental Disabilities Targeted Case 
919.31 	Management Medical Assistance Benefit.
919.32 	$200,000 in fiscal year 2025 is for a contract 
919.33 	to develop a Tribal vulnerable adult and 
919.34 	developmental disabilities targeted case 
920.1 	management medical assistance benefit under 
920.2 	Minnesota Statutes, section 256B.0924. This 
920.3 	is a onetime appropriation. Notwithstanding 
920.4 	Minnesota Statutes, section 16A.28, 
920.5 	subdivision 3, this appropriation is available 
920.6 	until June 30, 2027.
920.7 	(b) Disability Services Person-Centered 
920.8 	Engagement and Navigation Study.
920.9 	$600,000 in fiscal year 2025 is for the 
920.10 	disability services person-centered engagement 
920.11 	and navigation study. This is a onetime 
920.12 	appropriation. Notwithstanding Minnesota 
920.13 	Statutes, section 16A.28, subdivision 3, this 
920.14 	appropriation is available until June 30, 2026.
920.15 	(c) Pediatric Hospital-to-Home Transition 
920.16 	Pilot Program Administration. $300,000 in 
920.17 	fiscal year 2025 is for a contract related to the 
920.18 	pediatric hospital-to-home transition pilot 
920.19 	program. This is a onetime appropriation. 
920.20 	Notwithstanding Minnesota Statutes, section 
920.21 	16A.28, subdivision 3, this appropriation is 
920.22 	available until June 30, 2027.
920.23 	(d) Reimbursement for Community-First 
920.24 	Services and Supports Workers Report.
920.25 	$250,000 in fiscal year 2025 is for a contract 
920.26 	related to the reimbursement for 
920.27 	community-first services and supports workers 
920.28 	report. This is a onetime appropriation. 
920.29 	Notwithstanding Minnesota Statutes, section 
920.30 	16A.28, subdivision 3, this appropriation is 
920.31 	available until June 30, 2026.
920.32 	(e) Carryforward Authority.
920.33 	Notwithstanding Minnesota Statutes, section 
920.34 	16A.28, subdivision 3, $758,000 in fiscal year 
920.35 	2025 is available until June 30, 2026, and 
921.1 	$2,687,000 in fiscal year 2025 is available 
921.2 	until June 30, 2027.
921.3 	(f) Base Level Adjustment. The general fund 
921.4 	base is increased by $340,000 in fiscal year 
921.5 	2026 and increased by $340,000 in fiscal year 
921.6 	2027.

921.7
921.8
921.9	Subd. 5.Central Office; Behavioral Health, 
Housing, and Deaf and Hard-of-Hearing 
Services
 		-0-
		3,304,000
	
921.10 	(a) Medical Assistance Reentry 
921.11 	Demonstration. $600,000 in fiscal year 2025 
921.12 	is for engagement with people with lived 
921.13 	experience, families, and community partners 
921.14 	on the development and implementation of 
921.15 	the medical assistance reentry demonstration 
921.16 	benefit under Minnesota Statutes, section 
921.17 	256B.0761. This is a onetime appropriation. 
921.18 	Notwithstanding Minnesota Statutes, section 
921.19 	16A.28, subdivision 3, this appropriation is 
921.20 	available until June 30, 2027.
921.21 	(b) Working Group on Simplifying Housing 
921.22 	Support Resources. $400,000 in fiscal year 
921.23 	2025 is for administration of a working group 
921.24 	to streamline access, eligibility, and 
921.25 	administration of state-funded supportive 
921.26 	housing resources for people experiencing 
921.27 	homelessness. This is a onetime appropriation. 
921.28 	Notwithstanding Minnesota Statutes, section 
921.29 	16A.28, subdivision 3, this appropriation is 
921.30 	available until June 30, 2026.
921.31 	(c) Carryforward Authority.
921.32 	Notwithstanding Minnesota Statutes, section 
921.33 	16A.28, subdivision 3, $34,000 in fiscal year 
921.34 	2025 is available until June 30, 2026.
922.1 	(d) Base Level Adjustment. The general fund 
922.2 	base is increased by $2,271,000 in fiscal year 
922.3 	2026 and increased by $2,271,000 in fiscal 
922.4 	year 2027.

922.5
922.6	Subd. 6.Forecasted Programs; Medical 
Assistance
 		-0-
		5,533,000

922.7	Subd. 7.Forecasted Programs; Alternative Care
 		-0-
		49,000

922.8
922.9	Subd. 8.Forecasted Programs; Behavioral 
Health Fund
 		-0-
		274,000

922.10
922.11	Subd. 9.Grant Programs; Child and Economic 
Support Grants
 		-0-
		5,050,000
	
922.12 	(a) Homeless Shelter Services. $50,000 in 
922.13 	fiscal year 2025 is for a payment to Churches 
922.14 	United for the Homeless in Moorhead to hire 
922.15 	staff or contract for assistance to secure public 
922.16 	funding for Churches United's existing 
922.17 	services, including the provision of safe shelter 
922.18 	for individuals experiencing homelessness, 
922.19 	supportive housing, nutrition support, nursing 
922.20 	services, family services, and case 
922.21 	management. This is a onetime appropriation.
922.22 	(b) American Indian Food Sovereignty.
922.23 	$1,000,000 in fiscal year 2025 is for the 
922.24 	American Indian food sovereignty funding 
922.25 	program under Minnesota Statutes, section 
922.26 	256E.342. This is a onetime appropriation. 
922.27 	Notwithstanding Minnesota Statutes, section 
922.28 	16A.28, subdivision 3, this appropriation is 
922.29 	available until June 30, 2026.
922.30 	(c) Minnesota Food Shelf. $1,390,000 in 
922.31 	fiscal year 2025 is for the Minnesota food 
922.32 	shelf program under Minnesota Statutes, 
922.33 	section 256E.34. This is a onetime 
922.34 	appropriation.
923.1 	(d) Emergency Food Assistance Program.
923.2 	$2,610,000 in fiscal year 2025 is for contracts 
923.3 	with Minnesota's regional food banks that the 
923.4 	commissioner contracts with for the purposes 
923.5 	of the Emergency Food Assistance Program 
923.6 	(TEFAP). The commissioner shall distribute 
923.7 	the food bank funding under this paragraph in 
923.8 	accordance with the federal TEFAP formula 
923.9 	and guidelines of the United States 
923.10 	Department of Agriculture. Funding must be 
923.11 	used by all regional food banks to purchase 
923.12 	food that will be distributed free of charge to 
923.13 	TEFAP partner agencies. Funding must also 
923.14 	cover the handling and delivery fees typically 
923.15 	paid by food shelves to food banks to ensure 
923.16 	that costs associated with funding under this 
923.17 	paragraph are not incurred at the local level. 
923.18 	This is a onetime appropriation.

923.19	Subd. 10.Grant Programs; Refugee Services
 		-0-
		4,000,000
	
923.20 	Human Services Response Contingency 
923.21 	Account. (a) $4,000,000 in fiscal year 2025 
923.22 	is for the human services response contingency 
923.23 	account under Minnesota Statutes, section 
923.24 	256.044. This is a onetime appropriation.
923.25 	(b) The commissioner of management and 
923.26 	budget shall transfer $4,000,000 in fiscal year 
923.27 	2025 from the general fund to the human 
923.28 	services response contingency account 
923.29 	established under Minnesota Statutes, section 
923.30 	256.044. This is a onetime transfer.

923.31	Subd. 11.Grant Programs; Health Care Grants
 		-0-
		1,000,000
	
923.32 	County Correctional Facility Mental Health 
923.33 	Medication Pilot Program. $1,000,000 in 
923.34 	fiscal year 2025 is for the county correctional 
924.1 	facility mental health medication pilot 
924.2 	program. This is a onetime appropriation. 
924.3 	Notwithstanding Minnesota Statutes, section 
924.4 	16A.28, subdivision 3, this appropriation is 
924.5 	available until June 30, 2026.

924.6
924.7	Subd. 12.Grant Programs; Other Long Term 
Care Grants
 		(2,500,000)
		1,962,000
	
924.8 	(a) Health Awareness Hub Pilot Project.
924.9 	$281,000 in fiscal year 2025 is for a payment 
924.10 	to the Organization for Liberians in Minnesota 
924.11 	for a health awareness hub pilot project. The 
924.12 	pilot project must seek to address health care 
924.13 	education and the physical and mental 
924.14 	wellness needs of elderly individuals within 
924.15 	the African immigrant community by offering 
924.16 	culturally relevant support, resources, and 
924.17 	preventive care education from medical 
924.18 	practitioners who have a similar background, 
924.19 	and by making appropriate referrals to 
924.20 	culturally competent programs, supports, and 
924.21 	medical care. Within six months of the 
924.22 	conclusion of the pilot project, the 
924.23 	Organization for Liberians in Minnesota must 
924.24 	provide the commissioner with an evaluation 
924.25 	of the project as determined by the 
924.26 	commissioner. This is a onetime appropriation.
924.27 	(b) Chapter 245D Compliance Support.
924.28 	$219,000 in fiscal year 2025 is for a payment 
924.29 	to Black Business Enterprises Fund to support 
924.30 	minority providers licensed under Minnesota 
924.31 	Statutes, chapter 245D, as intensive support 
924.32 	services providers to build skills and the 
924.33 	infrastructure needed to increase the quality 
924.34 	of services provided to the people the 
924.35 	providers serve while complying with the 
925.1 	requirements of Minnesota Statutes, chapter 
925.2 	245D, and to enable the providers to accept 
925.3 	clients with high behavioral needs. This is a 
925.4 	onetime appropriation.
925.5 	(c) Customized Living Technical Assistance. 
925.6 	$350,000 is for a payment to Propel 
925.7 	Nonprofits for a culturally specific outreach 
925.8 	and education campaign toward existing 
925.9 	customized living providers that might more 
925.10 	appropriately serve their clients under a 
925.11 	different home and community-based services 
925.12 	program or license. This is a onetime 
925.13 	appropriation.
925.14 	(d) Linguistically and Culturally Specific 
925.15 	Training Pilot Project. $650,000 in fiscal 
925.16 	year 2025 is for a payment to Isuroon to 
925.17 	collaborate with the commissioner of human 
925.18 	services to develop and implement a pilot 
925.19 	program to provide: (1) linguistically and 
925.20 	culturally specific in-person training to 
925.21 	bilingual individuals, particularly bilingual 
925.22 	women, from diverse ethnic backgrounds; and 
925.23 	(2) technical assistance to providers to ensure 
925.24 	successful implementation of the pilot 
925.25 	program, including training, resources, and 
925.26 	ongoing support. Within six months of the 
925.27 	conclusion of the pilot project, Isuroon must 
925.28 	provide the commissioner with an evaluation 
925.29 	of the project as determined by the 
925.30 	commissioner. This is a onetime appropriation.
925.31 	(e) Long-Term Services and Supports Loan 
925.32 	Program. (1) $462,000 in fiscal year 2025 is 
925.33 	from the general fund for the long-term 
925.34 	services and supports loan program established 
925.35 	under Minnesota Statutes, section 256R.55. 
926.1 	The base for this appropriation is $822,000 in 
926.2 	fiscal year 2026 and $0 in fiscal year 2027.
926.3 	(2) The commissioner of management and 
926.4 	budget shall transfer $462,000 in fiscal year 
926.5 	2025 from the general fund to the long-term 
926.6 	services and supports loan account established 
926.7 	under Minnesota Statutes, section 256R.55. 
926.8 	The base for this transfer is $822,000 in fiscal 
926.9 	year 2026 and $0 in fiscal year 2027.
926.10 	(f) Base Level Adjustment. The general fund 
926.11 	base is decreased by $1,202,000 in fiscal year 
926.12 	2026 and decreased by $2,024,000 in fiscal 
926.13 	year 2027.

926.14
926.15	Subd. 13.Grant Programs; Aging and Adult 
Services Grants
 		-0-
		4,500,000
	
926.16 	(a) Caregiver Respite Services Grants.
926.17 	$2,000,000 in fiscal year 2025 is for caregiver 
926.18 	respite services grants under Minnesota 
926.19 	Statutes, section 256.9756. This is a onetime 
926.20 	appropriation. Notwithstanding Minnesota 
926.21 	Statutes, section 16A.28, subdivision 3, this 
926.22 	appropriation is available until June 30, 2027.
926.23 	(b) Caregiver Support Programs.
926.24 	$2,500,000 in fiscal year 2025 is for the 
926.25 	Minnesota Board on Aging for the purposes 
926.26 	of the caregiver support programs under 
926.27 	Minnesota Statutes, section 256.9755. 
926.28 	Programs receiving funding under this 
926.29 	paragraph must include an ALS-specific 
926.30 	respite service in their caregiver support 
926.31 	program. This is a onetime appropriation. 
926.32 	Notwithstanding Minnesota Statutes, section 
926.33 	16A.28, subdivision 3, this appropriation is 
926.34 	available until June 30, 2027.

927.1	Subd. 14.Grant Programs; Disabilities Grants
 		1,650,000
		9,574,000
	
927.2 	(a) Capital Improvement for Accessibility.
927.3 	$400,000 in fiscal year 2025 is for a payment 
927.4 	to Anoka County to make capital 
927.5 	improvements to existing space in the Anoka 
927.6 	County Human Services building in the city 
927.7 	of Blaine, including making bathrooms fully 
927.8 	compliant with the Americans with Disabilities 
927.9 	Act with adult changing tables and ensuring 
927.10 	barrier-free access for the purposes of 
927.11 	improving and expanding the services an 
927.12 	existing building tenant can provide to adults 
927.13 	with developmental disabilities. This is a 
927.14 	onetime appropriation.
927.15 	(b) Dakota County Disability Services 
927.16 	Workforce Shortage Pilot Project. $500,000 
927.17 	in fiscal year 2025 is for a grant to Dakota 
927.18 	County for innovative solutions to the 
927.19 	disability services workforce shortage. Up to 
927.20 	$250,000 of this amount must be used to 
927.21 	develop and test an online application for 
927.22 	matching requests for services from people 
927.23 	with disabilities to available staff, and up to 
927.24 	$250,000 of this amount must be used to 
927.25 	develop a communities-for-all program that 
927.26 	engages businesses, community organizations, 
927.27 	neighbors, and informal support systems to 
927.28 	promote community inclusion of people with 
927.29 	disabilities. By October 1, 2026, the 
927.30 	commissioner shall report the outcomes and 
927.31 	recommendations of these pilot projects to the 
927.32 	chairs and ranking minority members of the 
927.33 	legislative committees with jurisdiction over 
927.34 	human services finance and policy. This is a 
927.35 	onetime appropriation. Notwithstanding 
928.1 	Minnesota Statutes, section 16A.28, 
928.2 	subdivision 3, this appropriation is available 
928.3 	until June 30, 2027.
928.4 	(c) Pediatric Hospital-to-Home Transition 
928.5 	Pilot Program. $1,040,000 in fiscal year 2025 
928.6 	is for the pediatric hospital-to-home pilot 
928.7 	program. This is a onetime appropriation. 
928.8 	Notwithstanding Minnesota Statutes, section 
928.9 	16A.28, subdivision 3, this appropriation is 
928.10 	available until June 30, 2027.
928.11 	(d) Artists With Disabilities Support.
928.12 	$690,000 in fiscal year 2025 is for a payment 
928.13 	to a nonprofit organization licensed under 
928.14 	Minnesota Statutes, chapter 245D, located on 
928.15 	Minnehaha Avenue West in Saint Paul, and 
928.16 	that supports artists with disabilities in creating 
928.17 	visual and performing art that challenges 
928.18 	society's views of persons with disabilities. 
928.19 	This is a onetime appropriation. 
928.20 	Notwithstanding Minnesota Statutes, section 
928.21 	16A.28, subdivision 3, this appropriation is 
928.22 	available until June 30, 2027.
928.23 	(e) Emergency Relief Grants for Rural 
928.24 	EIDBI Providers. $600,000 in fiscal year 
928.25 	2025 is for emergency relief grants for EIDBI 
928.26 	providers. This is a onetime appropriation. 
928.27 	Notwithstanding Minnesota Statutes, section 
928.28 	16A.28, subdivision 3, this appropriation is 
928.29 	available until June 30, 2027.
928.30 	(f) Self-Advocacy Grants for Persons with 
928.31 	Intellectual and Developmental Disabilities.
928.32 	$250,000 in fiscal year 2025 is for 
928.33 	self-advocacy grants under Minnesota Statutes, 
928.34 	section 256.477, subdivision 1, paragraph (a), 
929.1 	clauses (5) to (7), and for administrative costs. 
929.2 	This is onetime appropriation.
929.3 	(g) Electronic Visit Verification 
929.4 	Implementation Grants. $864,000 in fiscal 
929.5 	year 2025 is for electronic visit verification 
929.6 	implementation grants. This is a onetime 
929.7 	appropriation. Notwithstanding Minnesota 
929.8 	Statutes, section 16A.28, subdivision 3, this 
929.9 	appropriation is available until June 30, 2027.
929.10 	(h) Aging and Disability Services for 
929.11 	Immigrant and Refugee Communities.
929.12 	$250,000 in fiscal year 2025 is for a payment 
929.13 	to SEWA-AIFW to address aging, disability, 
929.14 	and mental health needs for immigrant and 
929.15 	refugee communities. This is a onetime 
929.16 	appropriation.
929.17 	(i) License Transition Support for Small 
929.18 	Disability Waiver Providers. $3,150,000 in 
929.19 	fiscal year 2025 is for license transition 
929.20 	payments to small disability waiver providers. 
929.21 	This is a onetime appropriation. 
929.22 	Notwithstanding Minnesota Statutes, section 
929.23 	16A.28, subdivision 3, this appropriation is 
929.24 	available until June 30, 2027.
929.25 	(j) Own home services provider 
929.26 	capacity-building grants. $1,519,000 in fiscal 
929.27 	year 2025 is for the own home services 
929.28 	provider capacity-building grant program. 
929.29 	Notwithstanding Minnesota Statutes, section 
929.30 	16A.28, subdivision 3, this appropriation is 
929.31 	available until June 30, 2027. This is a onetime 
929.32 	appropriation.
929.33 	(k) Continuation of Centers for 
929.34 	Independent Living HCBS Access Grants.
930.1 	$311,000 in fiscal year 2024 is for continued 
930.2 	funding of grants awarded under Laws 2021, 
930.3 	First Special Session chapter 7, article 17, 
930.4 	section 19, as amended by Laws 2022, chapter 
930.5 	98, article 15, section 15. This is a onetime 
930.6 	appropriation and is available until June 30, 
930.7 	2025.
930.8 	(l) Base Level Adjustment. The general fund 
930.9 	base is increased by $811,000 in fiscal year 
930.10 	2026 and increased by $811,000 in fiscal year 
930.11 	2027.

930.12
930.13	Subd. 15.Grant Programs; Adult Mental Health 
Grants
 		(8,900,000)
		2,364,000
	
930.14 	(a) Locked Intensive Residential Treatment 
930.15 	Services. $1,000,000 in fiscal year 2025 is for 
930.16 	start-up funds to intensive residential treatment 
930.17 	services providers to provide treatment in 
930.18 	locked facilities for patients meeting medical 
930.19 	necessity criteria and who may also be referred 
930.20 	for competency attainment or a competency 
930.21 	examination under Minnesota Statutes, 
930.22 	sections 611.40 to 611.59. This is a onetime 
930.23 	appropriation. Notwithstanding Minnesota 
930.24 	Statutes, section 16A.28, subdivision 3, this 
930.25 	appropriation is available until June 30, 2027.
930.26 	(b) Engagement Services Pilot Grants.
930.27 	$1,500,000 in fiscal year 2025 is for 
930.28 	engagement services pilot grants. Of this 
930.29 	amount, $250,000 in fiscal year 2025 is for an 
930.30 	engagement services pilot grant to Otter Tail 
930.31 	County. This is a onetime appropriation. 
930.32 	Notwithstanding Minnesota Statutes, section 
930.33 	16A.28, subdivision 3, this appropriation is 
930.34 	available until June 30, 2026.
931.1 	(c) Mental Health Innovation Grant 
931.2 	Program. $1,321,000 in fiscal year 2025 is 
931.3 	for the mental health innovation grant program 
931.4 	under Minnesota Statutes, section 245.4662. 
931.5 	This is a onetime appropriation. 
931.6 	Notwithstanding Minnesota Statutes, section 
931.7 	16A.28, subdivision 3, this appropriation is 
931.8 	available until June 30, 2026.
931.9 	(d) Behavioral Health Services For 
931.10 	Immigrant And Refugee Communities.
931.11 	$354,000 in fiscal year 2025 is for a payment 
931.12 	to African Immigrant Community Services to 
931.13 	provide culturally and linguistically 
931.14 	appropriate services to new Americans with 
931.15 	disabilities, mental health needs, and substance 
931.16 	use disorders and to connect such individuals 
931.17 	with appropriate alternative service providers 
931.18 	to ensure continuity of care. This is a onetime 
931.19 	appropriation. Notwithstanding Minnesota 
931.20 	Statutes, section 16A.28, subdivision 3, this 
931.21 	appropriation is available until June 30, 2027.
931.22 	(e) Base Level Adjustment. The general fund 
931.23 	base is decreased by $1,811,000 in fiscal year 
931.24 	2026 and decreased by $1,811,000 in fiscal 
931.25 	year 2027.

931.26
931.27	Subd. 16.Grant Programs; Child Mental Health 
Grants
 		-0-
		500,000
	
931.28 	Youth Peer Recovery Support Services Pilot 
931.29 	Project. $500,000 in fiscal year 2025 is for a 
931.30 	grant to Hennepin County to conduct a 
931.31 	two-year pilot project to provide peer recovery 
931.32 	support services under Minnesota Statutes, 
931.33 	section 245G.07, subdivision 2, clause (8), to 
931.34 	youth between 13 and 18 years of age. The 
931.35 	pilot project must be conducted in partnership 
932.1 	with a community organization that provides 
932.2 	culturally specific peer recovery support 
932.3 	services to East African individuals and that 
932.4 	is working to expand peer recovery support 
932.5 	services for youth in Hennepin County. At the 
932.6 	conclusion of the pilot project, Hennepin 
932.7 	County must submit a report to the chairs and 
932.8 	ranking minority members of the legislative 
932.9 	committees with jurisdiction over health and 
932.10 	human services detailing the implementation, 
932.11 	operation, and outcomes of the pilot project 
932.12 	and providing recommendations on expanding 
932.13 	youth peer recovery support services 
932.14 	statewide. This is a onetime appropriation. 
932.15 	Notwithstanding Minnesota Statutes, section 
932.16 	16A.28, subdivision 3, this appropriation is 
932.17 	available until June 30, 2026.

932.18
932.19	Subd. 17.Grant Programs; Chemical 
Dependency Treatment Support Grants
 		(500,000)
		2,500,000
	
932.20 	Medical Assistance Reentry Demonstration 
932.21 	Grants. $2,500,000 in fiscal year 2025 is for 
932.22 	capacity building and implementation grants 
932.23 	for the medical assistance reentry 
932.24 	demonstration under Minnesota Statutes, 
932.25 	section 256B.0761. This is a onetime 
932.26 	appropriation. Notwithstanding Minnesota 
932.27 	Statutes, section 16A.28, subdivision 3, this 
932.28 	appropriation is available until June 30, 2027.

932.29
932.30	Subd. 18.Direct Care and Treatment - Mental 
Health and Substance Abuse
 		-0-
		977,000

932.31
932.32	Subd. 19.Direct Care and Treatment - Forensic 
Services
 		-0-
		7,752,000
	
932.33 	(a) Employee incentives. $1,000,000 in fiscal 
932.34 	year 2025 is for incentives related to the 
932.35 	transition of CARE St. Peter to the forensic 
933.1 	mental health program. This is a onetime 
933.2 	appropriation.
933.3 	(b) Base Level Adjustment. The general fund 
933.4 	base is increased by $6,612,000 in fiscal year 
933.5 	2026 and increased by $6,612,000 in fiscal 
933.6 	year 2027.

933.7
933.8	Subd. 20.Direct Care and Treatment - 
Operations
 		-0-
		6,094,000
	
933.9 	(a) Free Communication Services for 
933.10 	Patients and Clients. $1,368,000 in fiscal 
933.11 	year 2025 is for free communication services 
933.12 	under article 51, section 1. This is a onetime 
933.13 	appropriation. Notwithstanding Minnesota 
933.14 	Statutes, section 16A.28, subdivision 3, this 
933.15 	appropriation is available until June 30, 2026.
933.16 	(b) Direct Care and Treatment Capacity; 
933.17 	Miller Building. $1,796,000 in fiscal year 
933.18 	2025 is to design a replacement facility for the 
933.19 	Miller Building on the Anoka Metro Regional 
933.20 	Treatment Center campus. This is a onetime 
933.21 	appropriation. Notwithstanding Minnesota 
933.22 	Statutes, section 16A.28, subdivision 3, this 
933.23 	appropriation is available until June 30, 2027.
933.24 	(c) Direct Care and Treatment County 
933.25 	Correctional Facility Support Pilot 
933.26 	Program. $2,387,000 in fiscal year 2025 is 
933.27 	to establish a two-year county correctional 
933.28 	facility support pilot program. The pilot 
933.29 	program must: (1) provide education and 
933.30 	support to counties and county correctional 
933.31 	facilities on protocols and best practices for 
933.32 	the provision of involuntary medications for 
933.33 	mental health treatment; (2) provide technical 
933.34 	assistance to expand access to injectable 
933.35 	psychotropic medications in county 
934.1 	correctional facilities; and (3) survey county 
934.2 	correctional facilities and their contracted 
934.3 	medical providers on their capacity to provide 
934.4 	injectable psychotropic medications, including 
934.5 	involuntary administration of medications, 
934.6 	and barriers to providing these services. This 
934.7 	is a onetime appropriation. Notwithstanding 
934.8 	Minnesota Statutes, section 16A.28, 
934.9 	subdivision 3, this appropriation is available 
934.10 	until June 30, 2026.
934.11 	(d) Advisory Committee for Direct Care 
934.12 	and Treatment. $482,000 in fiscal year 2025 
934.13 	is for the administration of the advisory 
934.14 	committee for the operation of Direct Care 
934.15 	and Treatment. This is a onetime 
934.16 	appropriation. Notwithstanding Minnesota 
934.17 	Statutes, section 16A.28, subdivision 3, this 
934.18 	appropriation is available until June 30, 2027.
934.19 	(e) Base Level Adjustment. The general fund 
934.20 	base is increased by $31,000 in fiscal year 
934.21 	2026 and increased by $0 in fiscal year 2027.

934.22	Subd. 21.Grant Administration Costs
 					
934.23 	Notwithstanding Minnesota Statutes, section 
934.24 	16B.98, subdivision 14, the commissioner of 
934.25 	human services must not use any of the grant 
934.26 	amounts appropriated under this section for 
934.27 	administrative costs.

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

934.29	Sec. 3. COMMISSIONER OF HEALTH

934.30	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	1,087,000

934.31	Appropriations by Fund
	
934.32		2024
	2025
	
935.1	General
	-0-
	554,000
	
935.2
935.3	State Government 
Special Revenue
	-0-
	533,000
	
935.4 	The amounts that may be spent for each 
935.5 	purpose are specified in the following 
935.6 	subdivisions.

935.7	Subd. 2.Health Improvement
 		-0-
		554,000
	
935.8 	(a) Community Care Hub Grant. $500,000 
935.9 	in fiscal year 2025 is from the general fund 
935.10 	for the community care hub planning grant. 
935.11 	This is a onetime appropriation. 
935.12 	Notwithstanding Minnesota Statutes, section 
935.13 	16A.28, subdivision 3, this appropriation is 
935.14 	available until June 30, 2026.
935.15 	(b) Cannabis education program grants. To 
935.16 	achieve the net reduction in the general fund 
935.17 	base of $3,650,000 in fiscal year 2026 and 
935.18 	$3,650,000 in fiscal year 2027 for cannabis 
935.19 	education grants under Minnesota Statutes, 
935.20 	section 144.197, subdivision 4, the 
935.21 	commissioner must not reduce the grant 
935.22 	amounts distributed to Tribal health 
935.23 	departments.
935.24 	(c) Carryforward Authority.
935.25 	Notwithstanding Minnesota Statutes, section 
935.26 	16A.28, subdivision 3, $54,000 in fiscal year 
935.27 	2025 is available until June 30, 2026, for 
935.28 	administration expenses related to the 
935.29 	community care hub grant.
935.30 	(d) Base Level Adjustment. The general fund 
935.31 	base is decreased by $3,650,000 in fiscal year 
935.32 	2026 and decreased by $3,650,000 in fiscal 
935.33 	year 2027.

936.1	Subd. 3.Health Protection
 		-0-
		533,000
	
936.2 	This appropriation is from the state 
936.3 	government special revenue fund.
936.4 	Base Level Adjustments. The state 
936.5 	government special revenue base is increased 
936.6 	by $525,000 in fiscal year 2026 and increased 
936.7 	by $525,000 in fiscal year 2027.

936.8	Subd. 4.Grantee Evaluation Requirement
 					
936.9 	For all new grants for which money is 
936.10 	appropriated in this act, the commissioner of 
936.11 	health must comply with the grantee 
936.12 	evaluation requirements under Minnesota 
936.13 	Statutes, section 16B.98, subdivision 12.

936.14	Sec. 4. COUNCIL ON DISABILITY
 	$
	-0-
	$
	400,000
	
936.15 	$400,000 in fiscal year 2025 is for the 
936.16 	Legislative Task Force on Guardianship. 
936.17 	Notwithstanding Minnesota Statutes, section 
936.18 	16A.28, subdivision 3, this appropriation is 
936.19 	available until June 30, 2027. This is a onetime 
936.20 	appropriation.

936.21	Sec. 5. DEPARTMENT OF CORRECTIONS
 	$
	-0-
	$
	1,649,000
	
936.22 	Medical Assistance Reentry Demonstration.
936.23 	$1,649,000 in fiscal year 2025 is from the 
936.24 	general fund for planning and implementation 
936.25 	of the medical assistance reentry 
936.26 	demonstration. The base for this appropriation 
936.27 	is $1,924,000 in fiscal year 2026 and 
936.28 	$2,364,000 in fiscal year 2027.

936.29
936.30	Sec. 6. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT
 	$
	-0-
	$
	5,000,000
	
936.31 	Cedar Riverside Recreation Center.
936.32 	$5,000,000 in fiscal year 2025 is for a payment 
936.33 	to the Minneapolis Park and Recreation Board 
937.1 	for the design, development, and construction 
937.2 	of the new Cedar Riverside Recreation Center 
937.3 	to serve the largest immigrant population 
937.4 	center in the state. This is a onetime 
937.5 	appropriation available until June 30, 2028.

937.6 	Sec. 7. Laws 2021, First Special Session chapter 7, article 17, section 19, as amended by 
937.7 	Laws 2022, chapter 98, article 15, section 15, is amended to read:
937.8 	Sec. 19. CENTERS FOR INDEPENDENT LIVING HCBS ACCESS GRANT.
 937.9 	(a) This act includes $1,200,000 in fiscal year 2022 and $1,200,000 in fiscal year 2023 
937.10 	for grants to expand services to support people with disabilities from underserved 
937.11 	communities who are ineligible for medical assistance to live in their own homes and 
937.12 	communities by providing accessibility modifications, independent living services, and 
937.13 	public health program facilitation. The commissioner of human services must award the 
937.14 	grants in equal amounts to grantees. To be eligible, a grantee must be an organization defined 
937.15 	in Minnesota Statutes, section 268A.01, subdivision 8. Any unexpended amount in fiscal 
937.16 	year 2022 is available through June 30, 2023. The general fund base included in this act for 
937.17 	this purpose is $0 in fiscal year 2024 and $0 in fiscal year 2025.
937.18 	(b) All grant activities must be completed by March 31, 2024 June 30, 2025.
937.19 	(c) This section expires June 30, 2024 2025.

937.20 	EFFECTIVE DATE. This section is effective retroactively from March 31, 2024.

937.21 	Sec. 8. Laws 2023, chapter 53, article 21, section 6, is amended to read:
937.22 	Sec. 6. TRANSFERS.
 937.23 	(a) In the biennium ending on June 30, 2025, the commissioner of management and 
937.24 	budget must transfer $400,000,000 $390,000,000 from the general fund to the Minnesota 
937.25 	forward fund account established in Minnesota Statutes, section 116J.8752, subdivision 2. 
937.26 	The base for this transfer is $0.
937.27 	(b) In the biennium ending on June 30, 2025, the commissioner of management and 
937.28 	budget shall transfer $25,000,000 from the general fund to the Minnesota climate innovation 
937.29 	authority account established in Minnesota Statutes, section 216C.441, subdivision 11. The 
937.30 	base for this transfer is $0.
938.1 	(c) In the biennium ending on June 30, 2025, the commissioner of management and 
938.2 	budget must transfer $75,000,000 from the general fund to the state competitiveness fund 
938.3 	account established in Minnesota Statutes, section 216C.391, subdivision 2. Notwithstanding 
938.4 	Minnesota Statutes, section 216C.391, subdivision 2, the commissioner of commerce must 
938.5 	use this transfer for grants to eligible entities for projects receiving federal loans or tax 
938.6 	credits where the benefits are in disadvantaged communities. The base for this transfer is 
938.7 	$0. Up to three percent of money transferred under this paragraph is for administrative costs.
938.8 	(d) In the biennium ending on June 30, 2027, The commissioners of management and 
938.9 	budget, in consultation with the commissioners of employment and economic development 
938.10 	and commerce, may transfer money between the Minnesota forward fund account, the 
938.11 	Minnesota climate innovation authority account, and the state competitiveness fund account. 
938.12 	The commissioner of management and budget must notify the Legislative Advisory 
938.13 	Commission within 15 days of making transfers under this paragraph.
938.14 	(e) The commissioner of management and budget may transfer money from the Minnesota 
938.15 	forward fund account, the Minnesota climate innovation authority account, and the state 
938.16 	competitiveness fund account to the human services response contingency account established 
938.17 	under Minnesota Statutes, section 256.044, as necessary to respond to emergent state needs. 
938.18 	The commissioner of management and budget must notify the Legislative Advisory 
938.19 	Commission within 15 days of making transfers under this paragraph.
938.20 	(f) The commissioner of management and budget may transfer money from the Minnesota 
938.21 	forward fund account, the Minnesota climate innovation authority account, and the state 
938.22 	competitiveness fund account to other state agencies to maximize federal funding 
938.23 	opportunities. Money transferred under this paragraph is appropriated to the agency that 
938.24 	receives the money and is available until June 30, 2027. Any money that remains unspent 
938.25 	is canceled to the general fund. The commissioner of management and budget must notify 
938.26 	the Legislative Advisory Commission 15 days prior to making transfers under this paragraph.
938.27 	(g) The total amount transferred under paragraphs (e) and (f) shall not exceed 
938.28 	$100,000,000.

938.29 	Sec. 9. Laws 2023, chapter 53, article 21, section 7, is amended to read:
938.30 	Sec. 7. APPROPRIATIONS.
 938.31 	(a) $50,000,000 in fiscal year 2024 is appropriated from the Minnesota forward fund 
938.32 	account to the commissioner of employment and economic development for providing 
938.33 	businesses with matching funds required by federal programs. Money awarded under this 
939.1 	program is made retroactive to February 1, 2023, for applications and projects. The 
939.2 	commissioner may use up to two percent of this appropriation for administration. This is a 
939.3 	onetime appropriation and is available until June 30, 2027. Any funds that remain unspent 
939.4 	are canceled to the general fund.
939.5 	(b) $100,000,000 in fiscal year 2024 is appropriated from the Minnesota forward fund 
939.6 	account to the commissioner of employment and economic development to match existing 
939.7 	federal funds made available in the Consolidated Appropriations Act, Public Law 117-328. 
939.8 	This appropriation must be used to (1) construct and operate a bioindustrial manufacturing 
939.9 	pilot innovation facility, biorefinery, or commercial campus utilizing agricultural feedstocks 
939.10 	or (2) for a Minnesota aerospace center for research, development, and testing, or both (1) 
939.11 	and (2). This appropriation is not subject to the requirements of Minnesota Statutes, 
939.12 	116J.8752, subdivision 5. The commissioner may use up to two percent of this appropriation 
939.13 	for administration. This is a onetime appropriation and is available until June 30, 2027. Any 
939.14 	funds that remain unspent are canceled to the general fund.
939.15 	(c) $250,000,000 $240,000,000 in fiscal year 2024 is appropriated from the Minnesota 
939.16 	forward fund account to the commissioner of employment and economic development to 
939.17 	match federal funds made available in the Chips and Science Act, Public Law 117-167. 
939.18 	Money awarded under this program is made retroactive to February 1, 2023, for applications 
939.19 	and projects. This appropriation is not subject to Minnesota Statutes, section 116J.8752, 
939.20 	subdivision 5. The commissioner may use up two percent for administration. This is a 
939.21 	onetime appropriation and is available until June 30, 2027. Any funds that remain unspent 
939.22 	are canceled to the general fund.
939.23 	(d) The commissioner may use the appropriation under paragraph (c) to allocate up to 
939.24 	15 percent of the total project cost with a maximum of $75,000,000 per project for the 
939.25 	purpose of constructing, modernizing, or expanding commercial facilities on the front- and 
939.26 	back-end fabrication of leading-edge, current-generation, and mature-node semiconductors; 
939.27 	funding semiconductor materials and manufacturing equipment facilities; and for research 
939.28 	and development facilities.
939.29 	(e) The commissioner may use the appropriation under paragraph (c) to award:
939.30 	(1) grants to institutions of higher education for developing and deploying training 
939.31 	programs and to build pipelines to serve the needs of industry; and
939.32 	(2) grants to increase the capacity of institutions of higher education to serve industrial 
939.33 	requirements for research and development that coincide with current and future requirements 
939.34 	of projects eligible under this section. Grant money may be used to construct and equip 
940.1 	facilities that serve the purpose of the industry. The maximum grant award per institution 
940.2 	of higher education under this section is $5,000,000 and may not represent more than 50 
940.3 	percent of the total project funding from other sources. Use of this funding must be supported 
940.4 	by businesses receiving funds under clause (1).
940.5 	(f) Money appropriated in paragraphs (a), (b), and (c) may be transferred between 
940.6 	appropriations within the Minnesota forward fund account by the commissioner of 
940.7 	employment and economic development with approval of the commissioner of management 
940.8 	and budget. The commissioner must notify the Legislative Advisory Commission at least 
940.9 	15 days prior to changing appropriations under this paragraph.

940.10 	Sec. 10. Laws 2023, chapter 61, article 1, section 67, subdivision 3, is amended to read:
940.11 		Subd. 3.Evaluation and report. (a) The Metropolitan Center for Independent Living 
940.12 	must contract with a third party to evaluate the pilot project's impact on health care costs, 
940.13 	retention of personal care assistants, and patients' and providers' satisfaction of care. The 
940.14 	evaluation must include the number of participants, the hours of care provided by participants, 
940.15 	and the retention of participants from semester to semester.
940.16 	(b) By January 15, 2025 2026, the Metropolitan Center for Independent Living must 
940.17 	report the findings under paragraph (a) to the chairs and ranking minority members of the 
940.18 	legislative committees with jurisdiction over human services finance and policy.

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

940.20 	Sec. 11. Laws 2023, chapter 61, article 4, section 11, the effective date, is amended to 
940.21 	read:

940.22 	EFFECTIVE DATE. This section is effective January 1, 2024 2026, or upon federal 
940.23 	approval, whichever is later. The commissioner shall notify the revisor of statutes when 
940.24 	federal approval is obtained.

940.25 	Sec. 12. Laws 2023, chapter 61, article 9, section 2, subdivision 5, is amended to read:

940.26
940.27	Subd. 5.Central Office; Aging and Disability 
Services
 		40,115,000
		11,995,000
	
940.28 	(a) Employment Supports Alignment Study.
940.29 	$50,000 in fiscal year 2024 and $200,000 in 
940.30 	fiscal year 2025 are to conduct an interagency 
940.31 	employment supports alignment study. The 
941.1 	base for this appropriation is $150,000 in fiscal 
941.2 	year 2026 and $100,000 in fiscal year 2027.
941.3 	(b) Case Management Training 
941.4 	Curriculum. $377,000 in fiscal year 2024 and 
941.5 	$377,000 in fiscal year 2025 are to develop 
941.6 	and implement a curriculum and training plan 
941.7 	to ensure all lead agency assessors and case 
941.8 	managers have the knowledge and skills 
941.9 	necessary to fulfill support planning and 
941.10 	coordination responsibilities for individuals 
941.11 	who use home and community-based disability 
941.12 	services and live in own-home settings. This 
941.13 	is a onetime appropriation.
941.14 	(c) Office of Ombudsperson for Long-Term 
941.15 	Care. $875,000 in fiscal year 2024 and 
941.16 	$875,000 in fiscal year 2025 are for additional 
941.17 	staff and associated direct costs in the Office 
941.18 	of Ombudsperson for Long-Term Care.
941.19 	(d) Direct Care Services Corps Pilot Project.
941.20 	$500,000 in fiscal year 2024 is from the 
941.21 	general fund for a grant to the Metropolitan 
941.22 	Center for Independent Living for the direct 
941.23 	care services corps pilot project. Up to $25,000 
941.24 	may be used by the Metropolitan Center for 
941.25 	Independent Living for administrative costs. 
941.26 	This is a onetime appropriation and is 
941.27 	available until June 30, 2026.
941.28 	(e) Research on Access to Long-Term Care 
941.29 	Services and Financing. Any unexpended 
941.30 	amount of the fiscal year 2023 appropriation 
941.31 	referenced in Laws 2021, First Special Session 
941.32 	chapter 7, article 17, section 16, estimated to 
941.33 	be $300,000, is canceled. The amount canceled 
941.34 	is appropriated in fiscal year 2024 for the same 
941.35 	purpose.
942.1 	(f) Native American Elder Coordinator.
942.2 	$441,000 in fiscal year 2024 and $441,000 in 
942.3 	fiscal year 2025 are for the Native American 
942.4 	elder coordinator position under Minnesota 
942.5 	Statutes, section 256.975, subdivision 6.
942.6 	(g) Grant Administration Carryforward.
942.7 	(1) Of this amount, $8,154,000 in fiscal year 
942.8 	2024 is available until June 30, 2027.
942.9 	(2) Of this amount, $1,071,000 in fiscal year 
942.10 	2025 is available until June 30, 2027.
942.11 	(3) Of this amount, $19,000,000 in fiscal year 
942.12 	2024 is available until June 30, 2029.
942.13 	(h) Base Level Adjustment. The general fund 
942.14 	base is increased by $8,189,000 in fiscal year 
942.15 	2026 and increased by $8,093,000 in fiscal 
942.16 	year 2027.

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

942.18 	Sec. 13. Laws 2023, chapter 61, article 9, section 2, subdivision 14, is amended to read:

942.19
942.20	Subd. 14.Grant Programs; Aging and Adult 
Services Grants
 		164,626,000
		34,795,000
	
942.21 	(a) Vulnerable Adult Act Redesign Phase 
942.22 	Two. $17,129,000 in fiscal year 2024 is for 
942.23 	adult protection grants to counties and Tribes 
942.24 	under Minnesota Statutes, section 256M.42. 
942.25 	Notwithstanding Minnesota Statutes, section 
942.26 	16A.28, this appropriation is available until 
942.27 	June 30, 2027. The base for this appropriation 
942.28 	is $866,000 in fiscal year 2026 and $867,000 
942.29 	in fiscal year 2027.
942.30 	(b) Caregiver Respite Services Grants.
942.31 	$1,800,000 in fiscal year 2025 is for caregiver 
942.32 	respite services grants under Minnesota 
943.1 	Statutes, section 256.9756. This is a onetime 
943.2 	appropriation.
943.3 	(c) Live Well at Home Grants. $4,575,000 
943.4 	in fiscal year 2024 is for live well at home 
943.5 	grants under Minnesota Statutes, section 
943.6 	256.9754, subdivision 3f. This is a onetime 
943.7 	appropriation and is available until June 30, 
943.8 	2025.
943.9 	(d) Senior Nutrition Program. $10,552,000 
943.10 	in fiscal year 2024 is for the senior nutrition 
943.11 	program. Notwithstanding Minnesota Statutes, 
943.12 	section 16A.28, this appropriation is available 
943.13 	until June 30, 2027. This is a onetime 
943.14 	appropriation.
943.15 	(e) Age-Friendly Community Grants.
943.16 	$3,000,000 in fiscal year 2024 is for the 
943.17 	continuation of age-friendly community grants 
943.18 	under Laws 2021, First Special Session 
943.19 	chapter 7, article 17, section 8, subdivision 1. 
943.20 	Notwithstanding Minnesota Statutes, section 
943.21 	16A.28, this is a onetime appropriation and is 
943.22 	available until June 30, 2027.
943.23 	(f) Age-Friendly Technical Assistance 
943.24 	Grants. $1,725,000 in fiscal year 2024 is for 
943.25 	the continuation of age-friendly technical 
943.26 	assistance grants under Laws 2021, First 
943.27 	Special Session chapter 7, article 17, section 
943.28 	8, subdivision 2. Notwithstanding Minnesota 
943.29 	Statutes, section 16A.28, this is a onetime 
943.30 	appropriation and is available until June 30, 
943.31 	2027.
943.32 	(g) Financially Distressed Nursing Facility
943.33 	Long-Term Services and Supports Loan 
943.34 	Program. $93,200,000 in fiscal year 2024 is 
944.1 	for the financially distressed nursing facility
944.2 	long-term services and supports loan program 
944.3 	under Minnesota Statutes, section 256R.55, 
944.4 	and is available as provided therein.
944.5 	(h) Base Level Adjustment. The general fund 
944.6 	base is $33,861,000 in fiscal year 2026 and 
944.7 	$33,862,000 in fiscal year 2027.

944.8 	Sec. 14. Laws 2023, chapter 61, article 9, section 2, subdivision 16, as amended by Laws 
944.9 	2023, chapter 70, article 15, section 8, is amended to read:

944.10	Subd. 16.Grant Programs; Disabilities Grants
 		113,684,000
		30,377,000
	
944.11 	(a) Temporary Grants for Small 
944.12 	Customized Living Providers. $5,450,000 
944.13 	in fiscal year 2024 is for grants to assist small 
944.14 	customized living providers to transition to 
944.15 	community residential services licensure or 
944.16 	integrated community supports licensure. 
944.17 	Notwithstanding Minnesota Statutes, section 
944.18 	16A.28, this appropriation is available until 
944.19 	June 30, 2027. This is a onetime appropriation.
944.20 	(b) Lead Agency Capacity Building Grants.
944.21 	$444,000 in fiscal year 2024 and $2,396,000 
944.22 	in fiscal year 2025 are for grants to assist 
944.23 	organizations, counties, and Tribes to build 
944.24 	capacity for employment opportunities for 
944.25 	people with disabilities. The base for this 
944.26 	appropriation is $2,413,000 in fiscal year 2026 
944.27 	and $2,411,000 in fiscal year 2027.
944.28 	(c) Employment and Technical Assistance 
944.29 	Center Grants. $450,000 in fiscal year 2024 
944.30 	and $1,800,000 in fiscal year 2025 are for 
944.31 	employment and technical assistance grants 
944.32 	to assist organizations and employers in 
944.33 	promoting a more inclusive workplace for 
944.34 	people with disabilities.
945.1 	(d) Case Management Training Grants.
945.2 	$37,000 in fiscal year 2024 and $123,000 in 
945.3 	fiscal year 2025 are for grants to provide case 
945.4 	management training to organizations and 
945.5 	employers to support the state's disability 
945.6 	employment supports system. The base for 
945.7 	this appropriation is $45,000 in fiscal year 
945.8 	2026 and $45,000 in fiscal year 2027.
945.9 	(e) Self-Directed Bargaining Agreement; 
945.10 	Electronic Visit Verification Stipends.
945.11 	$6,095,000 in fiscal year 2024 is for onetime 
945.12 	stipends of $200 to bargaining members to 
945.13 	offset the potential costs related to people 
945.14 	using individual devices to access the 
945.15 	electronic visit verification system. Of this 
945.16 	amount, $5,600,000 is for stipends and 
945.17 	$495,000 is for administration. This is a 
945.18 	onetime appropriation and is available until 
945.19 	June 30, 2025.
945.20 	(f) Self-Directed Collective Bargaining 
945.21 	Agreement; Temporary Rate Increase 
945.22 	Memorandum of Understanding. $1,600,000 
945.23 	in fiscal year 2024 is for onetime stipends for 
945.24 	individual providers covered by the SEIU 
945.25 	collective bargaining agreement based on the 
945.26 	memorandum of understanding related to the 
945.27 	temporary rate increase in effect between 
945.28 	December 1, 2020, and February 7, 2021. Of 
945.29 	this amount, $1,400,000 of the appropriation 
945.30 	is for stipends and $200,000 is for 
945.31 	administration. This is a onetime 
945.32 	appropriation.
945.33 	(g) Self-Directed Collective Bargaining 
945.34 	Agreement; Retention Bonuses. $50,750,000 
945.35 	in fiscal year 2024 is for onetime retention 
946.1 	bonuses covered by the SEIU collective 
946.2 	bargaining agreement. Of this amount, 
946.3 	$50,000,000 is for retention bonuses and 
946.4 	$750,000 is for administration of the bonuses. 
946.5 	This is a onetime appropriation and is 
946.6 	available until June 30, 2025.
946.7 	(h) Self-Directed Bargaining Agreement; 
946.8 	Training Stipends. $2,100,000 in fiscal year 
946.9 	2024 and $100,000 in fiscal year 2025 are for 
946.10 	onetime stipends of $500 for collective 
946.11 	bargaining unit members who complete 
946.12 	designated, voluntary trainings made available 
946.13 	through or recommended by the State Provider 
946.14 	Cooperation Committee. Of this amount, 
946.15 	$2,000,000 in fiscal year 2024 is for stipends, 
946.16 	and $100,000 in fiscal year 2024 and $100,000 
946.17 	in fiscal year 2025 are for administration. This 
946.18 	is a onetime appropriation.
946.19 	(i) Self-Directed Bargaining Agreement; 
946.20 	Orientation Program. $2,000,000 in fiscal 
946.21 	year 2024 and $2,000,000 in fiscal year 2025 
946.22 	are for onetime $100 payments to collective 
946.23 	bargaining unit members who complete 
946.24 	voluntary orientation requirements. Of this 
946.25 	amount, $1,500,000 in fiscal year 2024 and 
946.26 	$1,500,000 in fiscal year 2025 are for the 
946.27 	onetime $100 payments, and $500,000 in 
946.28 	fiscal year 2024 and $500,000 in fiscal year 
946.29 	2025 are for orientation-related costs. This is 
946.30 	a onetime appropriation.
946.31 	(j) Self-Directed Bargaining Agreement; 
946.32 	Home Care Orientation Trust. $1,000,000 
946.33 	in fiscal year 2024 is for the Home Care 
946.34 	Orientation Trust under Minnesota Statutes, 
946.35 	section 179A.54, subdivision 11. The 
947.1 	commissioner shall disburse the appropriation 
947.2 	to the board of trustees of the Home Care 
947.3 	Orientation Trust for deposit into an account 
947.4 	designated by the board of trustees outside the 
947.5 	state treasury and state's accounting system. 
947.6 	This is a onetime appropriation and is 
947.7 	available until June 30, 2025.
947.8 	(k) HIV/AIDS Supportive Services.
947.9 	$12,100,000 in fiscal year 2024 is for grants 
947.10 	to community-based HIV/AIDS supportive 
947.11 	services providers as defined in Minnesota 
947.12 	Statutes, section 256.01, subdivision 19, and 
947.13 	for payment of allowed health care costs as 
947.14 	defined in Minnesota Statutes, section 
947.15 	256.9365. This is a onetime appropriation and 
947.16 	is available until June 30, 2025.
947.17 	(l) Motion Analysis Advancements Clinical 
947.18 	Study and Patient Care. $400,000 is fiscal 
947.19 	year 2024 is for a grant to the Mayo Clinic 
947.20 	Motion Analysis Laboratory and Limb Lab 
947.21 	for continued research in motion analysis 
947.22 	advancements and patient care. This is a 
947.23 	onetime appropriation and is available through 
947.24 	June 30, 2025.
947.25 	(m) Grant to Family Voices in Minnesota.
947.26 	$75,000 in fiscal year 2024 and $75,000 in 
947.27 	fiscal year 2025 are for a grant to Family 
947.28 	Voices in Minnesota under Minnesota 
947.29 	Statutes, section 256.4776.
947.30 	(n) Parent-to-Parent Programs.
947.31 	(1) $550,000 in fiscal year 2024 and $550,000 
947.32 	in fiscal year 2025 are for grants to 
947.33 	organizations that provide services to 
947.34 	underserved communities with a high 
948.1 	prevalence of autism spectrum disorder. This 
948.2 	is a onetime appropriation and is available 
948.3 	until June 30, 2025.
948.4 	(2) The commissioner shall give priority to 
948.5 	organizations that provide culturally specific 
948.6 	and culturally responsive services.
948.7 	(3) Eligible organizations must:
948.8 	(i) conduct outreach and provide support to 
948.9 	newly identified parents or guardians of a child 
948.10 	with special health care needs;
948.11 	(ii) provide training to educate parents and 
948.12 	guardians in ways to support their child and 
948.13 	navigate the health, education, and human 
948.14 	services systems;
948.15 	(iii) facilitate ongoing peer support for parents 
948.16 	and guardians from trained volunteer support 
948.17 	parents; and
948.18 	(iv) communicate regularly with other 
948.19 	parent-to-parent programs and national 
948.20 	organizations to ensure that best practices are 
948.21 	implemented.
948.22 	(4) Grant recipients must use grant money for 
948.23 	the activities identified in clause (3).
948.24 	(5) For purposes of this paragraph, "special 
948.25 	health care needs" means disabilities, chronic 
948.26 	illnesses or conditions, health-related 
948.27 	educational or behavioral problems, or the risk 
948.28 	of developing disabilities, illnesses, conditions, 
948.29 	or problems.
948.30 	(6) Each grant recipient must report to the 
948.31 	commissioner of human services annually by 
948.32 	January 15 with measurable outcomes from 
948.33 	programs and services funded by this 
949.1 	appropriation the previous year including the 
949.2 	number of families served and the number of 
949.3 	volunteer support parents trained by the 
949.4 	organization's parent-to-parent program.
949.5 	(o) Self-Advocacy Grants for Persons with 
949.6 	Intellectual and Developmental Disabilities.
949.7 	$323,000 in fiscal year 2024 and $323,000 in 
949.8 	fiscal year 2025 are for self-advocacy grants 
949.9 	under Minnesota Statutes, section 256.477. 
949.10 	This is a onetime appropriation. Of these 
949.11 	amounts, $218,000 in fiscal year 2024 and 
949.12 	$218,000 in fiscal year 2025 are for the 
949.13 	activities under Minnesota Statutes, section 
949.14 	256.477, subdivision 1, paragraph (a), clauses 
949.15 	(5) to (7), and for administrative costs, and 
949.16 	$105,000 in fiscal year 2024 and $105,000 in 
949.17 	fiscal year 2025 are for the activities under 
949.18 	Minnesota Statutes, section 256.477, 
949.19 	subdivision 2.
949.20 	(p) Technology for Home Grants. $300,000 
949.21 	in fiscal year 2024 and $300,000 in fiscal year 
949.22 	2025 are for technology for home grants under 
949.23 	Minnesota Statutes, section 256.4773.
949.24 	(q) Community Residential Setting 
949.25 	Transition. $500,000 in fiscal year 2024 is 
949.26 	for a grant to Hennepin County to expedite 
949.27 	approval of community residential setting 
949.28 	licenses subject to the corporate foster care 
949.29 	moratorium exception under Minnesota 
949.30 	Statutes, section 245A.03, subdivision 7, 
949.31 	paragraph (a), clause (5).
949.32 	(r) Base Level Adjustment. The general fund 
949.33 	base is $27,343,000 in fiscal year 2026 and 
949.34 	$27,016,000 in fiscal year 2027.

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

950.2 	Sec. 15. Laws 2023, chapter 61, article 9, section 2, subdivision 18, is amended to read:

950.3
950.4	Subd. 18.Grant Programs; Chemical 
Dependency Treatment Support Grants

950.5	Appropriations by Fund
	
950.6	General
	54,691,000
	5,342,000
	
950.7	Lottery Prize
	1,733,000
	1,733,000
	
950.8 	(a) Culturally Specific Recovery 
950.9 	Community Organization Start-Up Grants.
950.10 	$4,000,000 in fiscal year 2024 is for culturally 
950.11 	specific recovery community organization 
950.12 	start-up grants. Notwithstanding Minnesota 
950.13 	Statutes, section 16A.28, this appropriation is 
950.14 	available until June 30, 2027. This is a onetime 
950.15 	appropriation.
950.16 	(b) Safe Recovery Sites. $14,537,000 in fiscal 
950.17 	year 2024 is from the general fund for start-up 
950.18 	and capacity-building grants for organizations 
950.19 	to establish safe recovery sites. 
950.20 	Notwithstanding Minnesota Statutes, section 
950.21 	16A.28, this appropriation is onetime and is 
950.22 	available until June 30, 2029.
950.23 	(c) Technical Assistance for Culturally 
950.24 	Specific Organizations; Culturally Specific 
950.25 	Services Grants. $4,000,000 in fiscal year 
950.26 	2024 is for grants to culturally specific 
950.27 	providers for technical assistance navigating 
950.28 	culturally specific and responsive substance 
950.29 	use and recovery programs. Notwithstanding 
950.30 	Minnesota Statutes, section 16A.28, this 
950.31 	appropriation is available until June 30, 2027.
950.32 	(d) Technical Assistance for Culturally 
950.33 	Specific Organizations; Culturally Specific 
950.34 	Grant Development Training. $400,000 in 
951.1 	fiscal year 2024 is for grants for up to four 
951.2 	trainings for community members and 
951.3 	culturally specific providers for grant writing 
951.4 	training for substance use and recovery-related 
951.5 	grants. Notwithstanding Minnesota Statutes, 
951.6 	section 16A.28, this is a onetime appropriation 
951.7 	and is available until June 30, 2027.
951.8 	(e) Harm Reduction Supplies for Tribal and 
951.9 	Culturally Specific Programs. $7,597,000 
951.10 	in fiscal year 2024 is from the general fund to 
951.11 	provide sole source grants to culturally 
951.12 	specific communities to purchase syringes, 
951.13 	testing supplies, and opiate antagonists. 
951.14 	Notwithstanding Minnesota Statutes, section 
951.15 	16A.28, this appropriation is available until 
951.16 	June 30, 2027. This is a onetime appropriation.
951.17 	(f) Families and Family Treatment 
951.18 	Capacity-Building and Start-Up Grants.
951.19 	$10,000,000 in fiscal year 2024 is from the 
951.20 	general fund for start-up and capacity-building 
951.21 	grants for family substance use disorder 
951.22 	treatment programs. Notwithstanding 
951.23 	Minnesota Statutes, section 16A.28, this 
951.24 	appropriation is available until June 30, 2029. 
951.25 	This is a onetime appropriation.
951.26 	(g) Start-Up and Capacity Building Grants 
951.27 	for Withdrawal Management.$500,000 $0
951.28 	in fiscal year 2024 and $1,000,000 in fiscal 
951.29 	year 2025 are for start-up and capacity 
951.30 	building grants for withdrawal management.
951.31 	(h) Recovery Community Organization 
951.32 	Grants. $4,300,000 in fiscal year 2024 is from 
951.33 	the general fund for grants to recovery 
951.34 	community organizations, as defined in 
951.35 	Minnesota Statutes, section 254B.01, 
952.1 	subdivision 8, that are current grantees as of 
952.2 	June 30, 2023. This is a onetime appropriation 
952.3 	and is available until June 30, 2025.
952.4 	(i) Opioid Overdose Prevention Grants.
952.5 	(1) $125,000 in fiscal year 2024 and $125,000 
952.6 	in fiscal year 2025 are from the general fund 
952.7 	for a grant to Ka Joog, a nonprofit organization 
952.8 	in Minneapolis, Minnesota, to be used for 
952.9 	collaborative outreach, education, and training 
952.10 	on opioid use and overdose, and distribution 
952.11 	of opiate antagonist kits in East African and 
952.12 	Somali communities in Minnesota. This is a 
952.13 	onetime appropriation.
952.14 	(2) $125,000 in fiscal year 2024 and $125,000 
952.15 	in fiscal year 2025 are from the general fund 
952.16 	for a grant to the Steve Rummler Hope 
952.17 	Network to be used for statewide outreach, 
952.18 	education, and training on opioid use and 
952.19 	overdose, and distribution of opiate antagonist 
952.20 	kits. This is a onetime appropriation.
952.21 	(3) $250,000 in fiscal year 2024 and $250,000 
952.22 	in fiscal year 2025 are from the general fund 
952.23 	for a grant to African Career Education and 
952.24 	Resource, Inc. to be used for collaborative 
952.25 	outreach, education, and training on opioid 
952.26 	use and overdose, and distribution of opiate 
952.27 	antagonist kits. This is a onetime 
952.28 	appropriation.
952.29 	(j) Problem Gambling. $225,000 in fiscal 
952.30 	year 2024 and $225,000 in fiscal year 2025 
952.31 	are from the lottery prize fund for a grant to a 
952.32 	state affiliate recognized by the National 
952.33 	Council on Problem Gambling. The affiliate 
952.34 	must provide services to increase public 
953.1 	awareness of problem gambling, education, 
953.2 	training for individuals and organizations that 
953.3 	provide effective treatment services to problem 
953.4 	gamblers and their families, and research 
953.5 	related to problem gambling.
953.6 	(k) Project ECHO. $1,310,000 in fiscal year 
953.7 	2024 and $1,295,000 in fiscal year 2025 are 
953.8 	from the general fund for a grant to Hennepin 
953.9 	Healthcare to expand the Project ECHO 
953.10 	program. The grant must be used to establish 
953.11 	at least four substance use disorder-focused 
953.12 	Project ECHO programs at Hennepin 
953.13 	Healthcare, expanding the grantee's capacity 
953.14 	to improve health and substance use disorder 
953.15 	outcomes for diverse populations of 
953.16 	individuals enrolled in medical assistance, 
953.17 	including but not limited to immigrants, 
953.18 	individuals who are homeless, individuals 
953.19 	seeking maternal and perinatal care, and other 
953.20 	underserved populations. The Project ECHO 
953.21 	programs funded under this section must be 
953.22 	culturally responsive, and the grantee must 
953.23 	contract with culturally and linguistically 
953.24 	appropriate substance use disorder service 
953.25 	providers who have expertise in focus areas, 
953.26 	based on the populations served. Grant funds 
953.27 	may be used for program administration, 
953.28 	equipment, provider reimbursement, and 
953.29 	staffing hours. This is a onetime appropriation
953.30 	and is available until June 30, 2027.
953.31 	(l) White Earth Nation Substance Use 
953.32 	Disorder Digital Therapy Tool. $3,000,000 
953.33 	in fiscal year 2024 is from the general fund 
953.34 	for a grant to the White Earth Nation to 
953.35 	develop an individualized Native American 
954.1 	centric digital therapy tool with Pathfinder 
954.2 	Solutions. This is a onetime appropriation. 
954.3 	The grant must be used to:
954.4 	(1) develop a mobile application that is 
954.5 	culturally tailored to connecting substance use 
954.6 	disorder resources with White Earth Nation 
954.7 	members;
954.8 	(2) convene a planning circle with White Earth 
954.9 	Nation members to design the tool;
954.10 	(3) provide and expand White Earth 
954.11 	Nation-specific substance use disorder 
954.12 	services; and
954.13 	(4) partner with an academic research 
954.14 	institution to evaluate the efficacy of the 
954.15 	program.
954.16 	(m) Wellness in the Woods. $300,000 in 
954.17 	fiscal year 2024 and $300,000 in fiscal year 
954.18 	2025 are from the general fund for a grant to 
954.19 	Wellness in the Woods for daily peer support 
954.20 	and special sessions for individuals who are 
954.21 	in substance use disorder recovery, are 
954.22 	transitioning out of incarceration, or who have 
954.23 	experienced trauma. These are onetime 
954.24 	appropriations.
954.25 	(n) Base Level Adjustment. The general fund 
954.26 	base is $3,247,000 in fiscal year 2026 and 
954.27 	$3,247,000 in fiscal year 2027.

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

954.29 	Sec. 16. Laws 2023, chapter 70, article 20, section 2, subdivision 29, is amended to read:

954.30
954.31	Subd. 29.Grant Programs; Adult Mental Health 
Grants
 		132,327,000
		121,270,000
	
954.32 	(a) Mobile crisis grants to Tribal Nations. 
954.33 	$1,000,000 in fiscal year 2024 and $1,000,000 
955.1 	in fiscal year 2025 are for mobile crisis grants 
955.2 	under Minnesota Statutes section sections
955.3 	245.4661, subdivision 9, paragraph (b), clause 
955.4 	(15),  and 245.4889, subdivision 1, paragraph 
955.5 	(b), clause (4), to Tribal Nations.
955.6 	(b) Mental health provider supervision 
955.7 	grant program. $1,500,000 in fiscal year 
955.8 	2024 and $1,500,000 in fiscal year 2025 are 
955.9 	for the mental health provider supervision 
955.10 	grant program under Minnesota Statutes, 
955.11 	section 245.4663.
955.12 	(c) Minnesota State University, Mankato 
955.13 	community behavioral health center. 
955.14 	$750,000 in fiscal year 2024 and $750,000 in 
955.15 	fiscal year 2025 are for a grant to the Center 
955.16 	for Rural Behavioral Health at Minnesota State 
955.17 	University, Mankato to establish a community 
955.18 	behavioral health center and training clinic. 
955.19 	The community behavioral health center must 
955.20 	provide comprehensive, culturally specific, 
955.21 	trauma-informed, practice- and 
955.22 	evidence-based, person- and family-centered 
955.23 	mental health and substance use disorder 
955.24 	treatment services in Blue Earth County and 
955.25 	the surrounding region to individuals of all 
955.26 	ages, regardless of an individual's ability to 
955.27 	pay or place of residence. The community 
955.28 	behavioral health center and training clinic 
955.29 	must also provide training and workforce 
955.30 	development opportunities to students enrolled 
955.31 	in the university's training programs in the 
955.32 	fields of social work, counseling and student 
955.33 	personnel, alcohol and drug studies, 
955.34 	psychology, and nursing. Upon request, the 
955.35 	commissioner must make information 
956.1 	regarding the use of this grant funding 
956.2 	available to the chairs and ranking minority 
956.3 	members of the legislative committees with 
956.4 	jurisdiction over behavioral health. This is a 
956.5 	onetime appropriation and is available until 
956.6 	June 30, 2027.
956.7 	(d) White Earth Nation; adult mental health 
956.8 	initiative. $300,000 in fiscal year 2024 and 
956.9 	$300,000 in fiscal year 2025 are for adult 
956.10 	mental health initiative grants to the White 
956.11 	Earth Nation. This is a onetime appropriation.
956.12 	(e) Mobile crisis grants. $8,472,000 in fiscal 
956.13 	year 2024 and $8,380,000 in fiscal year 2025 
956.14 	are for the mobile crisis grants under 
956.15 	Minnesota Statutes, section sections245.4661, 
956.16 	subdivision 9, paragraph (b), clause (15), and 
956.17 	245.4889, subdivision 1, paragraph (b), clause 
956.18 	(4). This is a onetime appropriation and is 
956.19 	available until June 30, 2027.
956.20 	(f) Base level adjustment. The general fund 
956.21 	base is $121,980,000 in fiscal year 2026 and 
956.22 	$121,980,000 in fiscal year 2027.

956.23 	Sec. 17. REIMBURSEMENT TO BELTRAMI COUNTY AND TODD COUNTY 
956.24 	FOR CERTAIN COST OF CARE PAYMENTS.
 956.25 	This act includes $336,680 in fiscal year 2025 for reimbursement of prior payments by 
956.26 	Beltrami County and the forgiveness of existing Beltrami County debt under article 49, 
956.27 	section 8, paragraph (a), and $387,000 in fiscal year 2025 for reimbursement of prior 
956.28 	payments by Todd County and the forgiveness of existing Todd County debt under article 
956.29 	49, section 8, paragraph (b).

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

957.1 	Sec. 18. REVIVAL AND REENACTMENT.
 957.2 	Minnesota Statutes 2022, section 256B.051, subdivision 7, is revived and reenacted 
957.3 	effective retroactively from August 1, 2023. Any time frames within or dependent on the 
957.4 	subdivision are based on the original effective date in Laws 2017, First Special Session 
957.5 	chapter 6, article 2, section 10.

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

957.7 	Sec. 19. APPROPRIATIONS GIVEN EFFECT ONCE.
 957.8 	If an appropriation or transfer in this article is enacted more than once during the 2024 
957.9 	legislative session, the appropriation or transfer must be given effect once.

957.10 	Sec. 20. DIRECTION TO COMMISSIONER OF MANAGEMENT AND BUDGET; 
957.11 	DIRECT CARE AND TREATMENT BUDGET.
 957.12 	The commissioner of management and budget must identify any unexpended 
957.13 	appropriations and all base funding for the Direct Care and Treatment Division of the 
957.14 	Department of Human Services and allocate the identified unexpended appropriations and 
957.15 	base funding to Direct Care and Treatment when establishing the 2026-2027 biennial budget.

957.16 	Sec. 21. REPEALER.
 957.17 	Laws 2023, chapter 25, section 190, subdivision 10, is repealed.

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

957.19 	Sec. 22. EXPIRATION OF UNCODIFIED LANGUAGE.
 957.20 	All uncodified language contained in this article expires on June 30, 2025, unless a 
957.21 	different expiration date is explicit.

957.22 	Sec. 23. EFFECTIVE DATE.
 957.23 	This article is effective July 1, 2024, unless a different effective date is specified.

958.1 	ARTICLE 54
958.2 	DEPARTMENT OF HUMAN SERVICES HEALTH CARE FINANCE

958.3 	Section 1. Minnesota Statutes 2023 Supplement, section 256.9631, is amended to read:
958.4 	256.9631 DIRECT PAYMENT SYSTEM ALTERNATIVE CARE DELIVERY 
958.5 	MODELS FOR MEDICAL ASSISTANCE AND MINNESOTACARE.
958.6 		Subdivision 1.Direction to the commissioner. (a) The commissioner, in order to deliver 
958.7 	services to eligible individuals, achieve better health outcomes, and reduce the cost of health 
958.8 	care for the state, shall develop an implementation plan plans for a direct payment system 
958.9 	to deliver services to eligible individuals in order to achieve better health outcomes and 
958.10 	reduce the cost of health care for the state. Under this system, at least three care delivery 
958.11 	models that:
958.12 	(1) are alternatives to the use of commercial managed care plans to deliver health care 
958.13 	to Minnesota health care program enrollees; and
958.14 	(2) do not shift financial risk to nongovernmental entities.
958.15 	(b) One of the alternative models must be a direct payment system under which eligible 
958.16 	individuals must receive services through the medical assistance fee-for-service system, 
958.17 	county-based purchasing plans, or and county-owned health maintenance organizations. At 
958.18 	least one additional model must include county-based purchasing plans and county-owned 
958.19 	health maintenance organizations in their design, and must allow these entities to deliver 
958.20 	care in geographic areas on a single plan basis, if:
958.21 	(1) these entities contract with all providers that agree to contract terms for network 
958.22 	participation; and
958.23 	(2) the commissioner of human services determines that an entity's provider network is 
958.24 	adequate to ensure enrollee access and choice.
958.25 	(c) Before determining the alternative models for which implementation plans will be 
958.26 	developed, the commissioner shall consult with the chairs and ranking minority members 
958.27 	of the legislative committees with jurisdiction over health care finance and policy.
958.28 	(d) The commissioner shall present an implementation plan plans for the direct payment 
958.29 	system selected models to the chairs and ranking minority members of the legislative 
958.30 	committees with jurisdiction over health care finance and policy by January 15, 2026. The 
958.31 	commissioner may contract for technical assistance in developing the implementation plan
958.32 	plans and conducting related studies and analyses.
959.1 	(b) For the purposes of the direct payment system, the commissioner shall make the 
959.2 	following assumptions:
959.3 	(1) health care providers are reimbursed directly for all medical assistance covered 
959.4 	services provided to eligible individuals, using the fee-for-service payment methods specified 
959.5 	in chapters 256, 256B, 256R, and 256S;
959.6 	(2) payments to a qualified hospital provider are equivalent to the payments that would 
959.7 	have been received based on managed care direct payment arrangements. If necessary, a 
959.8 	qualified hospital provider may use a county-owned health maintenance organization to 
959.9 	receive direct payments as described in section 256B.1973; and
959.10 	(3) county-based purchasing plans and county-owned health maintenance organizations 
959.11 	must be reimbursed at the capitation rate determined under sections 256B.69 and 256B.692.
959.12 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
959.13 	meanings given.
959.14 	(b) "Eligible individuals" means qualified all medical assistance enrollees, defined as 
959.15 	persons eligible for medical assistance as families and children and adults without children
959.16 	and MinnesotaCare enrollees.
959.17 	(c) "Minnesota health care programs" means the medical assistance and MinnesotaCare 
959.18 	programs.
959.19 	(c) (d) "Qualified hospital provider" means a nonstate government teaching hospital 
959.20 	with high medical assistance utilization and a level 1 trauma center, and all of the hospital's 
959.21 	owned or affiliated health care professionals, ambulance services, sites, and clinics.
959.22 		Subd. 3.Implementation plan plans. (a) The Each implementation plan must include:
959.23 	(1) a timeline for the development and recommended implementation date of the direct 
959.24 	payment system alternative model. In recommending a timeline, the commissioner must 
959.25 	consider:
959.26 	(i) timelines required by the existing contracts with managed care plans and county-based 
959.27 	purchasing plans to sunset existing delivery models;
959.28 	(ii) in counties that choose to operate a county-based purchasing plan under section 
959.29 	256B.692, timelines for any new procurements required for those counties to establish a 
959.30 	new county-based purchasing plan or participate in an existing county-based purchasing 
959.31 	plan;
960.1 	(iii) in counties that choose to operate a county-owned health maintenance organization 
960.2 	under section 256B.69, timelines for any new procurements required for those counties to 
960.3 	establish a new county-owned health maintenance organization or to continue serving 
960.4 	enrollees through an existing county-owned health maintenance organization; and
960.5 	(iv) a recommendation on whether the commissioner should contract with a third-party 
960.6 	administrator to administer the direct payment system alternative model, and the timeline 
960.7 	needed for procuring an administrator;
960.8 	(2) the procedures to be used to ensure continuity of care for enrollees who transition 
960.9 	from managed care to fee-for-service and any administrative resources needed to carry out 
960.10 	these procedures;
960.11 	(3) recommended quality measures for health care service delivery;
960.12 	(4) any changes to fee-for-service payment rates that the commissioner determines are 
960.13 	necessary to ensure provider access and high-quality care and to reduce health disparities;
960.14 	(5) recommendations on ensuring effective care coordination under the direct payment 
960.15 	system alternative model, especially for enrollees who:
960.16 	(i) are age 65 or older, blind, or have disabilities;
960.17 	(ii) have complex medical conditions, who;
960.18 	(iii) face socioeconomic barriers to receiving care, or who; or
960.19 	(iv) are from underserved populations that experience health disparities;
960.20 	(6) recommendations on whether the direct payment system should provide supplemental 
960.21 	payments payment arrangements for care coordination, including:
960.22 	(i) the provider types eligible for supplemental care coordination payments;
960.23 	(ii) procedures to coordinate supplemental care coordination payments with existing 
960.24 	supplemental or cost-based payment methods or to replace these existing methods; and
960.25 	(iii) procedures to align care coordination initiatives funded through supplemental 
960.26 	payments under this section the alternative model with existing care coordination initiatives;
960.27 	(7) recommendations on whether the direct payment system alternative model should 
960.28 	include funding to providers for outreach initiatives to patients who, because of mental 
960.29 	illness, homelessness, or other circumstances, are unlikely to obtain needed care and 
960.30 	treatment;
961.1 	(8) recommendations for a supplemental payment to qualified hospital providers to offset 
961.2 	any potential revenue losses resulting from the shift from managed care payments; and
961.3 	(9) recommendations on whether and how the direct payment system should be expanded 
961.4 	to deliver services and care coordination to medical assistance enrollees who are age 65 or 
961.5 	older, are blind, or have a disability and to persons enrolled in MinnesotaCare; and
961.6 	(10) (9) recommendations for statutory changes necessary to implement the direct 
961.7 	payment system alternative model.
961.8 	(b) In developing the each implementation plan, the commissioner shall:
961.9 	(1) calculate the projected cost of a direct payment system the alternative model relative 
961.10 	to the cost of the current system;
961.11 	(2) assess gaps in care coordination under the current medical assistance and 
961.12 	MinnesotaCare programs;
961.13 	(3) evaluate the effectiveness of approaches other states have taken to coordinate care 
961.14 	under a fee-for-service system, including the coordination of care provided to persons who 
961.15 	are age 65 or older, are blind, or have disabilities;
961.16 	(4) estimate the loss of revenue and cost savings from other payment enhancements 
961.17 	based on managed care plan directed payments and pass-throughs;
961.18 	(5) estimate cost trends under a direct payment system the alternative model for managed 
961.19 	care payments to county-based purchasing plans and county-owned health maintenance 
961.20 	organizations;
961.21 	(6) estimate the impact of a direct payment system the alternative model on other revenue, 
961.22 	including taxes, surcharges, or other federally approved in lieu of services and on other 
961.23 	arrangements allowed under managed care;
961.24 	(7) consider allowing eligible individuals to opt out of managed care as an alternative 
961.25 	approach;
961.26 	(8) assess the feasibility of a medical assistance outpatient prescription drug benefit 
961.27 	carve-out under section 256B.69, subdivision 6d, and in consultation with the commissioners 
961.28 	of commerce and health, assess the feasibility of including MinnesotaCare enrollees and 
961.29 	private sector enrollees of health plan companies in the drug benefit carve-out. The 
961.30 	assessment of feasibility must address and include recommendations related to the process 
961.31 	and terms by which the commissioner would contract with health plan companies to 
962.1 	administer prescription drug benefits and develop and manage a drug formulary, and the 
962.2 	impact of the drug-benefit carve-out on health care providers, including small pharmacies;
962.3 	(9) (8) consult with the commissioners of health and commerce and the contractor or 
962.4 	contractors analyzing the Minnesota Health Plan under section 19 and other health reform 
962.5 	models on plan design and assumptions; and
962.6 	(10) (9) conduct other analyses necessary to develop the implementation plan.

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

962.8 	Sec. 2. Minnesota Statutes 2022, section 256.9657, is amended by adding a subdivision 
962.9 	to read:
962.10 		Subd. 2a.Teaching hospital surcharge. (a) Each teaching hospital shall pay to the 
962.11 	medical assistance account a surcharge equal to 1.41 percent of its fiscal year 2021 net 
962.12 	patient revenue for inpatient services. The initial surcharge must not be collected more than 
962.13 	30 days before the commissioner makes the first of the payments required under section 
962.14 	256.969, subdivision 2g. Subsequent surcharge payments must be paid annually in the form 
962.15 	and manner specified by the commissioner. The surcharge must comply with all applicable 
962.16 	federal requirements and federal laws, including but not limited to Code of Federal 
962.17 	Regulations, title 42, section 433.68.
962.18 	(b) Revenue from the surcharge must be used by the commissioner only to pay the 
962.19 	nonfederal share of the medical assistance supplemental payments described in section 
962.20 	256.969, subdivision 2g, and must be used to supplement, and not supplant, medical 
962.21 	assistance reimbursement to teaching hospitals.
962.22 	(c) For purposes of this subdivision, "teaching hospital" means any Minnesota hospital 
962.23 	with a Centers for Medicare and Medicaid Services designation of "teaching hospital" as 
962.24 	reported on form CMS-2552-10, worksheet S-2, line 56, that is eligible for reimbursement 
962.25 	under section 256.969, subdivision 2g.
962.26 	(d) Notwithstanding paragraph (c), the following hospitals are exempt from paying the 
962.27 	surcharge under this section:
962.28 	(1) all hospitals in Minnesota designated as a children's hospital under Medicare, including 
962.29 	Children's Health Care, doing business as Children's Minnesota, and Gillette Children's 
962.30 	Specialty Healthcare, doing business as Gillette Children's;
962.31 	(2) teaching hospitals with three or fewer full-time equivalent trainees, based on a 
962.32 	Medicare cost report filed for the fiscal year ending in 2022;
963.1 	(3) federal Indian Health Service facilities; and
963.2 	(4) regional treatment centers.
963.3 	(e) The teaching hospital surcharge established under this subdivision must only be 
963.4 	assessed if the annual inpatient supplemental payments under section 256.969, subdivision 
963.5 	2g, are approved by the Centers for Medicare and Medicaid Services.
963.6 	(f) The commissioner must reduce the surcharge percentage in paragraph (a) such that 
963.7 	the aggregate amount collected from hospitals under this subdivision does not exceed the 
963.8 	total amount needed for the nonfederal share of the annual inpatient supplemental payments 
963.9 	authorized by section 256.969, subdivision 2g.
963.10 	(g) For purposes of this subdivision, net patient revenue for inpatient services must be 
963.11 	calculated by:
963.12 	(1) determining gross inpatient hospital facility charges from the hospital's audited 
963.13 	statements or, if not contained or segregated within the hospital's audited financial statements, 
963.14 	using detailed internal financial income statements or schedules; and
963.15 	(2) subtracting from gross inpatient hospital facility charges:
963.16 	(i) all professional fee charges, home health charges, skilled nursing facility charges, 
963.17 	hospice charges, end-stage renal disease charges, and other nonhospital charges; and
963.18 	(ii) applicable contractual allowances.
963.19 	(h) Teaching hospitals subject to the surcharge under this subdivision shall submit to 
963.20 	the commissioner, in the form and manner specified by the commissioner, all documentation 
963.21 	necessary to provide reconciliation of the net patient revenue calculation under paragraph 
963.22 	(b).
963.23 	(i) This subdivision is effective on the later of July 1, 2025, or 60 days after the end of 
963.24 	the first legislative regular session that begins following federal approval for all of the 
963.25 	following: (1) the amendment in this act adding section 256.9657, subdivision 2a; (2) the 
963.26 	amendment in this act to section 256.969, subdivision 2b; and (3) the amendment in this 
963.27 	act adding section 256.969, subdivision 2g. The commissioner of human services shall 
963.28 	notify the revisor of statutes when federal approval is obtained.
963.29 	(j) This subdivision is subject to the implementation requirements in section 9.
963.30 	(k) This subdivision expires June 30, 2030, or five years after federal approval is obtained, 
963.31 	whichever is later.

964.1 	Sec. 3. Minnesota Statutes 2023 Supplement, section 256.969, subdivision 2b, is amended 
964.2 	to read:
964.3 		Subd. 2b.Hospital payment rates. (a) For discharges occurring on or after November 
964.4 	1, 2014, hospital inpatient services for hospitals located in Minnesota shall be paid according 
964.5 	to the following:
964.6 	(1) critical access hospitals as defined by Medicare shall be paid using a cost-based 
964.7 	methodology;
964.8 	(2) long-term hospitals as defined by Medicare shall be paid on a per diem methodology 
964.9 	under subdivision 25;
964.10 	(3) rehabilitation hospitals or units of hospitals that are recognized as rehabilitation 
964.11 	distinct parts as defined by Medicare shall be paid according to the methodology under 
964.12 	subdivision 12; and
964.13 	(4) all other hospitals shall be paid on a diagnosis-related group (DRG) methodology.
964.14 	(b) For the period beginning January 1, 2011, through October 31, 2014, rates shall not 
964.15 	be rebased, except that a Minnesota long-term hospital shall be rebased effective January 
964.16 	1, 2011, based on its most recent Medicare cost report ending on or before September 1, 
964.17 	2008, with the provisions under subdivisions 9 and 23, based on the rates in effect on 
964.18 	December 31, 2010. For rate setting periods after November 1, 2014, in which the base 
964.19 	years are updated, a Minnesota long-term hospital's base year shall remain within the same 
964.20 	period as other hospitals.
964.21 	(c) Effective for discharges occurring on and after November 1, 2014, payment rates 
964.22 	for hospital inpatient services provided by hospitals located in Minnesota or the local trade 
964.23 	area, except for the hospitals paid under the methodologies described in paragraph (a), 
964.24 	clauses (2) and (3), shall be rebased, incorporating cost and payment methodologies in a 
964.25 	manner similar to Medicare. The base year or years for the rates effective November 1, 
964.26 	2014, shall be calendar year 2012. The rebasing under this paragraph shall be budget neutral, 
964.27 	ensuring that the total aggregate payments under the rebased system are equal to the total 
964.28 	aggregate payments that were made for the same number and types of services in the base 
964.29 	year. Separate budget neutrality calculations shall be determined for payments made to 
964.30 	critical access hospitals and payments made to hospitals paid under the DRG system. Only 
964.31 	the rate increases or decreases under subdivision 3a or 3c that applied to the hospitals being 
964.32 	rebased during the entire base period shall be incorporated into the budget neutrality 
964.33 	calculation.
965.1 	(d) For discharges occurring on or after November 1, 2014, through the next rebasing 
965.2 	that occurs, the rebased rates under paragraph (c) that apply to hospitals under paragraph 
965.3 	(a), clause (4), shall include adjustments to the projected rates that result in no greater than 
965.4 	a five percent increase or decrease from the base year payments for any hospital. Any 
965.5 	adjustments to the rates made by the commissioner under this paragraph and paragraph (e) 
965.6 	shall maintain budget neutrality as described in paragraph (c).
965.7 	(e) For discharges occurring on or after November 1, 2014, the commissioner may make 
965.8 	additional adjustments to the rebased rates, and when evaluating whether additional 
965.9 	adjustments should be made, the commissioner shall consider the impact of the rates on the 
965.10 	following:
965.11 	(1) pediatric services;
965.12 	(2) behavioral health services;
965.13 	(3) trauma services as defined by the National Uniform Billing Committee;
965.14 	(4) transplant services;
965.15 	(5) obstetric services, newborn services, and behavioral health services provided by 
965.16 	hospitals outside the seven-county metropolitan area;
965.17 	(6) outlier admissions;
965.18 	(7) low-volume providers; and
965.19 	(8) services provided by small rural hospitals that are not critical access hospitals.
965.20 	(f) Hospital payment rates established under paragraph (c) must incorporate the following:
965.21 	(1) for hospitals paid under the DRG methodology, the base year payment rate per 
965.22 	admission is standardized by the applicable Medicare wage index and adjusted by the 
965.23 	hospital's disproportionate population adjustment;
965.24 	(2) for critical access hospitals, payment rates for discharges between November 1, 2014, 
965.25 	and June 30, 2015, shall be set to the same rate of payment that applied for discharges on 
965.26 	October 31, 2014;
965.27 	(3) the cost and charge data used to establish hospital payment rates must only reflect 
965.28 	inpatient services covered by medical assistance; and
965.29 	(4) in determining hospital payment rates for discharges occurring on or after the rate 
965.30 	year beginning January 1, 2011, through December 31, 2012, the hospital payment rate per 
965.31 	discharge shall be based on the cost-finding methods and allowable costs of the Medicare 
966.1 	program in effect during the base year or years. In determining hospital payment rates for 
966.2 	discharges in subsequent base years, the per discharge rates shall be based on the cost-finding 
966.3 	methods and allowable costs of the Medicare program in effect during the base year or 
966.4 	years.
966.5 	(g) The commissioner shall validate the rates effective November 1, 2014, by applying 
966.6 	the rates established under paragraph (c), and any adjustments made to the rates under 
966.7 	paragraph (d) or (e), to hospital claims paid in calendar year 2013 to determine whether the 
966.8 	total aggregate payments for the same number and types of services under the rebased rates 
966.9 	are equal to the total aggregate payments made during calendar year 2013.
966.10 	(h) Effective for discharges occurring on or after July 1, 2017, and every two years 
966.11 	thereafter, payment rates under this section shall be rebased to reflect only those changes 
966.12 	in hospital costs between the existing base year or years and the next base year or years. In 
966.13 	any year that inpatient claims volume falls below the threshold required to ensure a 
966.14 	statistically valid sample of claims, the commissioner may combine claims data from two 
966.15 	consecutive years to serve as the base year. Years in which inpatient claims volume is 
966.16 	reduced or altered due to a pandemic or other public health emergency shall not be used as 
966.17 	a base year or part of a base year if the base year includes more than one year. Changes in 
966.18 	costs between base years shall be measured using the lower of the hospital cost index defined 
966.19 	in subdivision 1, paragraph (a), or the percentage change in the case mix adjusted cost per 
966.20 	claim. The commissioner shall establish the base year for each rebasing period considering 
966.21 	the most recent year or years for which filed Medicare cost reports are available, except 
966.22 	that the base years for the rebasing effective July 1, 2023, are calendar years 2018 and 2019. 
966.23 	The estimated change in the average payment per hospital discharge resulting from a 
966.24 	scheduled rebasing must be calculated and made available to the legislature by January 15 
966.25 	of each year in which rebasing is scheduled to occur, and must include by hospital the 
966.26 	differential in payment rates compared to the individual hospital's costs.
966.27 	(i) Effective for discharges occurring on or after July 1, 2015, inpatient payment rates 
966.28 	for critical access hospitals located in Minnesota or the local trade area shall be determined 
966.29 	using a new cost-based methodology. The commissioner shall establish within the 
966.30 	methodology tiers of payment designed to promote efficiency and cost-effectiveness. 
966.31 	Payment rates for hospitals under this paragraph shall be set at a level that does not exceed 
966.32 	the total cost for critical access hospitals as reflected in base year cost reports. Until the 
966.33 	next rebasing that occurs, the new methodology shall result in no greater than a five percent 
966.34 	decrease from the base year payments for any hospital, except a hospital that had payments 
966.35 	that were greater than 100 percent of the hospital's costs in the base year shall have their 
967.1 	rate set equal to 100 percent of costs in the base year. The rates paid for discharges on and 
967.2 	after July 1, 2016, covered under this paragraph shall be increased by the inflation factor 
967.3 	in subdivision 1, paragraph (a). The new cost-based rate shall be the final rate and shall not 
967.4 	be settled to actual incurred costs. Hospitals shall be assigned a payment tier based on the 
967.5 	following criteria:
967.6 	(1) hospitals that had payments at or below 80 percent of their costs in the base year 
967.7 	shall have a rate set that equals 85 percent of their base year costs;
967.8 	(2) hospitals that had payments that were above 80 percent, up to and including 90 
967.9 	percent of their costs in the base year shall have a rate set that equals 95 percent of their 
967.10 	base year costs; and
967.11 	(3) hospitals that had payments that were above 90 percent of their costs in the base year 
967.12 	shall have a rate set that equals 100 percent of their base year costs.
967.13 	(j) The commissioner may refine the payment tiers and criteria for critical access hospitals 
967.14 	to coincide with the next rebasing under paragraph (h). The factors used to develop the new 
967.15 	methodology may include, but are not limited to:
967.16 	(1) the ratio between the hospital's costs for treating medical assistance patients and the 
967.17 	hospital's charges to the medical assistance program;
967.18 	(2) the ratio between the hospital's costs for treating medical assistance patients and the 
967.19 	hospital's payments received from the medical assistance program for the care of medical 
967.20 	assistance patients;
967.21 	(3) the ratio between the hospital's charges to the medical assistance program and the 
967.22 	hospital's payments received from the medical assistance program for the care of medical 
967.23 	assistance patients;
967.24 	(4) the statewide average increases in the ratios identified in clauses (1), (2), and (3);
967.25 	(5) the proportion of that hospital's costs that are administrative and trends in 
967.26 	administrative costs; and
967.27 	(6) geographic location.
967.28 	(k) Subject to subdivision 2g, effective for discharges occurring on or after January 1, 
967.29 	2024, the rates paid to hospitals described in paragraph (a), clauses (2) to (4), must include 
967.30 	a rate factor specific to each hospital that qualifies for a medical education and research 
967.31 	cost distribution under section 62J.692, subdivision 4, paragraph (a).

968.1 	EFFECTIVE DATE. (a) This section is effective the later of July 1, 2025, or 60 days 
968.2 	after the end of the first legislative session that begins following federal approval of all of 
968.3 	the following:
968.4 	(1) the amendment in this act to add Minnesota Statutes, section 256.9657, subdivision 
968.5 	2a;
968.6 	(2) the amendments in this act to Minnesota Statutes, section 256.969, subdivision 2b; 
968.7 	and
968.8 	(3) the amendment in this act to add Minnesota Statutes, section 256.969, subdivision 
968.9 	2g.
968.10 	(b) The commissioner of human services shall notify the revisor of statutes when federal 
968.11 	approval is obtained.

968.12 	Sec. 4. Minnesota Statutes 2022, section 256.969, is amended by adding a subdivision to 
968.13 	read:
968.14 		Subd. 2g.Annual supplemental payment for graduate medical education. (a) The 
968.15 	commissioner and contracted managed care organizations shall annually pay an inpatient 
968.16 	supplemental payment to all eligible hospitals for graduate medical education. A hospital 
968.17 	must be an eligible hospital to receive an annual supplemental payment under this 
968.18 	subdivision. Payments under this subdivision must comply with all applicable federal 
968.19 	requirements and federal laws and meet the requirements of Code of Federal Regulations, 
968.20 	title 42, section 438.60.
968.21 	(b) For purposes of this subdivision, "eligible hospital" means a hospital that:
968.22 	(1) is located in Minnesota;
968.23 	(2) participates in Minnesota's medical assistance program;
968.24 	(3) has received fee-for-service medical assistance payments in the payment year; and
968.25 	(4) is either:
968.26 	(i) eligible to receive graduate medical education payments from the Medicare program 
968.27 	under Code of Federal Regulations, title 42, section 413.75; or
968.28 	(ii) a hospital in Minnesota designated as a children's hospital under Medicare, including 
968.29 	Children's Health Care, doing business as Children's Minnesota, and Gillette Children's 
968.30 	Specialty Healthcare, doing business as Gillette Children's.
968.31 	(c) The annual inpatient supplemental payment must be calculated as follows:
969.1 	(1) $425,000 per full-time equivalent trained for each of the first ten full-time equivalents 
969.2 	at a hospital;
969.3 	(2) $350,000 per full-time equivalent trained for each full-time equivalent between 11 
969.4 	and 20 full-time equivalents at a hospital;
969.5 	(3) $95,000 per full-time equivalent trained for each full-time equivalent between 21 
969.6 	and 30 full-time equivalents at a hospital;
969.7 	(4) $70,000 per full-time equivalent trained for each full-time equivalent between 31 
969.8 	and 400 full-time equivalents at a hospital; and
969.9 	(5) $50,000 per full-time equivalent trained for each full-time equivalent above 401 
969.10 	full-time equivalents at a hospital.
969.11 	(d) The data source for the full-time equivalent trained under paragraph (c) must be the 
969.12 	Medicare cost report for the fiscal year ending in calendar year 2022. The full-time equivalent 
969.13 	is calculated by adding the two values populated on lines 10 and 11 on worksheet E, part 
969.14 	A, of the Medicare cost report for that year, except that for eligible hospitals that are children's 
969.15 	hospitals, the full-time equivalent is calculated based on interns and residents, as determined 
969.16 	by adding form CMS-2552-10, worksheet E-4, lines 6, 10.01, and 15.01, or its equivalent, 
969.17 	for that year.
969.18 	(e) An eligible hospital must not accept any reimbursement under section 62J.692 if it 
969.19 	would result in payments in excess of eligible expenditures. The surcharge paid under section 
969.20 	256.9657, subdivision 2a, and the payment received under this section must be reported in 
969.21 	the application under section 62J.692.
969.22 	(f) The supplemental payments under this subdivision:
969.23 	(1) must not be included as public program revenue under section 62J.692; and
969.24 	(2) must be deemed permissible pass-through payments for graduate medical education 
969.25 	under Code of Federal Regulations, title 42, section 438.6(d), or when the state makes 
969.26 	payments directly to teaching hospitals for graduate medical education costs approved under 
969.27 	the state plan under Code of Federal Regulations, title 42, section 438.60.
969.28 	(g) The total aggregate state and federal supplemental payments for hospitals under this 
969.29 	subdivision must not exceed $203,000,000 per year. The commissioner may reduce the 
969.30 	amount paid for each full-time equivalent, as described in paragraph (c), on an equal basis 
969.31 	to limit the total cost of all supplemental payments to the total dollar amounts available.
970.1 	(h) This subdivision is effective the later of July 1, 2025, or 60 days after the end of the 
970.2 	first legislative regular session that begins following federal approval for all of the following: 
970.3 	(1) the amendment in this act adding section 256.9657, subdivision 2a; (2) the amendment 
970.4 	in this act to section 256.969, subdivision 2b; and (3) the amendment in this act to add 
970.5 	section 256.969, subdivision 2g. The commissioner of human services shall notify the revisor 
970.6 	of statutes when federal approval is obtained.
970.7 	(i) This subdivision is subject to the implementation requirements in section 9.
970.8 	(j) This subdivision expires June 30, 2030, or five years after federal approval is obtained, 
970.9 	whichever is later.

970.10 	Sec. 5. Minnesota Statutes 2022, section 256.969, is amended by adding a subdivision to 
970.11 	read:
970.12 		Subd. 32.Biological products for cell and gene therapy. (a) Effective July 1, 2025, 
970.13 	and upon necessary federal approval of documentation required to enter into a value-based 
970.14 	arrangement under section 256B.0625, subdivision 13k, the commissioner may provide 
970.15 	separate reimbursement to hospitals for biological products provided in the inpatient hospital 
970.16 	setting as part of cell or gene therapy to treat rare diseases, as defined in United States Code, 
970.17 	title 21, section 360bb, if the drug manufacturer enters into a value-based arrangement with 
970.18 	the commissioner.
970.19 	(b) The commissioner shall establish the separate reimbursement rate for biological 
970.20 	products provided under paragraph (a) based on the methodology used for drugs administered 
970.21 	in an outpatient setting under section 256B.0625, subdivision 13e, paragraph (e).

970.22 	EFFECTIVE DATE. This section is effective July 1, 2025.

970.23 	Sec. 6. Minnesota Statutes 2023 Supplement, section 256B.0625, subdivision 13e, as 
970.24 	amended by Laws 2024, chapter 85, section 66, is amended to read:
970.25 		Subd. 13e.Payment rates. (a) The basis for determining the amount of payment shall 
970.26 	be the lower of the ingredient costs of the drugs plus the professional dispensing fee; or the 
970.27 	usual and customary price charged to the public. The usual and customary price means the 
970.28 	lowest price charged by the provider to a patient who pays for the prescription by cash, 
970.29 	check, or charge account and includes prices the pharmacy charges to a patient enrolled in 
970.30 	a prescription savings club or prescription discount club administered by the pharmacy or 
970.31 	pharmacy chain. The amount of payment basis must be reduced to reflect all discount 
970.32 	amounts applied to the charge by any third-party provider/insurer agreement or contract for 
971.1 	submitted charges to medical assistance programs. The net submitted charge may not be 
971.2 	greater than the patient liability for the service. The professional dispensing fee shall be 
971.3 	$10.77 $11.55 for prescriptions filled with legend drugs meeting the definition of "covered 
971.4 	outpatient drugs" according to United States Code, title 42, section 1396r-8(k)(2). The 
971.5 	dispensing fee for intravenous solutions that must be compounded by the pharmacist shall 
971.6 	be $10.77 $11.55 per claim. The professional dispensing fee for prescriptions filled with 
971.7 	over-the-counter drugs meeting the definition of covered outpatient drugs shall be $10.77
971.8 	$11.55 for dispensed quantities equal to or greater than the number of units contained in 
971.9 	the manufacturer's original package. The professional dispensing fee shall be prorated based 
971.10 	on the percentage of the package dispensed when the pharmacy dispenses a quantity less 
971.11 	than the number of units contained in the manufacturer's original package. The pharmacy 
971.12 	dispensing fee for prescribed over-the-counter drugs not meeting the definition of covered 
971.13 	outpatient drugs shall be $3.65 for quantities equal to or greater than the number of units 
971.14 	contained in the manufacturer's original package and shall be prorated based on the 
971.15 	percentage of the package dispensed when the pharmacy dispenses a quantity less than the 
971.16 	number of units contained in the manufacturer's original package. The National Average 
971.17 	Drug Acquisition Cost (NADAC) shall be used to determine the ingredient cost of a drug. 
971.18 	For drugs for which a NADAC is not reported, the commissioner shall estimate the ingredient 
971.19 	cost at the wholesale acquisition cost minus two percent. The ingredient cost of a drug for 
971.20 	a provider participating in the federal 340B Drug Pricing Program shall be either the 340B 
971.21 	Drug Pricing Program ceiling price established by the Health Resources and Services 
971.22 	Administration or NADAC, whichever is lower. Wholesale acquisition cost is defined as 
971.23 	the manufacturer's list price for a drug or biological to wholesalers or direct purchasers in 
971.24 	the United States, not including prompt pay or other discounts, rebates, or reductions in 
971.25 	price, for the most recent month for which information is available, as reported in wholesale 
971.26 	price guides or other publications of drug or biological pricing data. The maximum allowable 
971.27 	cost of a multisource drug may be set by the commissioner and it shall be comparable to 
971.28 	the actual acquisition cost of the drug product and no higher than the NADAC of the generic 
971.29 	product. Establishment of the amount of payment for drugs shall not be subject to the 
971.30 	requirements of the Administrative Procedure Act.
971.31 	(b) Pharmacies dispensing prescriptions to residents of long-term care facilities using 
971.32 	an automated drug distribution system meeting the requirements of section 151.58, or a 
971.33 	packaging system meeting the packaging standards set forth in Minnesota Rules, part 
971.34 	6800.2700, that govern the return of unused drugs to the pharmacy for reuse, may employ 
971.35 	retrospective billing for prescription drugs dispensed to long-term care facility residents. A 
971.36 	retrospectively billing pharmacy must submit a claim only for the quantity of medication 
972.1 	used by the enrolled recipient during the defined billing period. A retrospectively billing 
972.2 	pharmacy must use a billing period not less than one calendar month or 30 days.
972.3 	(c) A pharmacy provider using packaging that meets the standards set forth in Minnesota 
972.4 	Rules, part 6800.2700, is required to credit the department for the actual acquisition cost 
972.5 	of all unused drugs that are eligible for reuse, unless the pharmacy is using retrospective 
972.6 	billing. The commissioner may permit the drug clozapine to be dispensed in a quantity that 
972.7 	is less than a 30-day supply.
972.8 	(d) If a pharmacy dispenses a multisource drug, the ingredient cost shall be the NADAC 
972.9 	of the generic product or the maximum allowable cost established by the commissioner 
972.10 	unless prior authorization for the brand name product has been granted according to the 
972.11 	criteria established by the Drug Formulary Committee as required by subdivision 13f, 
972.12 	paragraph (a), and the prescriber has indicated "dispense as written" on the prescription in 
972.13 	a manner consistent with section 151.21, subdivision 2.
972.14 	(e) The basis for determining the amount of payment for drugs administered in an 
972.15 	outpatient setting shall be the lower of the usual and customary cost submitted by the 
972.16 	provider, 106 percent of the average sales price as determined by the United States 
972.17 	Department of Health and Human Services pursuant to title XVIII, section 1847a of the 
972.18 	federal Social Security Act, the specialty pharmacy rate, or the maximum allowable cost 
972.19 	set by the commissioner. If average sales price is unavailable, the amount of payment must 
972.20 	be lower of the usual and customary cost submitted by the provider, the wholesale acquisition 
972.21 	cost, the specialty pharmacy rate, or the maximum allowable cost set by the commissioner. 
972.22 	The commissioner shall discount the payment rate for drugs obtained through the federal 
972.23 	340B Drug Pricing Program by 28.6 percent. The payment for drugs administered in an 
972.24 	outpatient setting shall be made to the administering facility or practitioner. A retail or 
972.25 	specialty pharmacy dispensing a drug for administration in an outpatient setting is not 
972.26 	eligible for direct reimbursement.
972.27 	(f) The commissioner may establish maximum allowable cost rates for specialty pharmacy 
972.28 	products that are lower than the ingredient cost formulas specified in paragraph (a). The 
972.29 	commissioner may require individuals enrolled in the health care programs administered 
972.30 	by the department to obtain specialty pharmacy products from providers with whom the 
972.31 	commissioner has negotiated lower reimbursement rates. Specialty pharmacy products are 
972.32 	defined as those used by a small number of recipients or recipients with complex and chronic 
972.33 	diseases that require expensive and challenging drug regimens. Examples of these conditions 
972.34 	include, but are not limited to: multiple sclerosis, HIV/AIDS, transplantation, hepatitis C, 
972.35 	growth hormone deficiency, Crohn's Disease, rheumatoid arthritis, and certain forms of 
973.1 	cancer. Specialty pharmaceutical products include injectable and infusion therapies, 
973.2 	biotechnology drugs, antihemophilic factor products, high-cost therapies, and therapies that 
973.3 	require complex care. The commissioner shall consult with the Formulary Committee to 
973.4 	develop a list of specialty pharmacy products subject to maximum allowable cost 
973.5 	reimbursement. In consulting with the Formulary Committee in developing this list, the 
973.6 	commissioner shall take into consideration the population served by specialty pharmacy 
973.7 	products, the current delivery system and standard of care in the state, and access to care 
973.8 	issues. The commissioner shall have the discretion to adjust the maximum allowable cost 
973.9 	to prevent access to care issues.
973.10 	(g) Home infusion therapy services provided by home infusion therapy pharmacies must 
973.11 	be paid at rates according to subdivision 8d.
973.12 	(h) The commissioner shall contract with a vendor to conduct a cost of dispensing survey 
973.13 	for all pharmacies that are physically located in the state of Minnesota that dispense outpatient 
973.14 	drugs under medical assistance. The commissioner shall ensure that the vendor has prior 
973.15 	experience in conducting cost of dispensing surveys. Each pharmacy enrolled with the 
973.16 	department to dispense outpatient prescription drugs to fee-for-service members must 
973.17 	respond to the cost of dispensing survey. The commissioner may sanction a pharmacy under 
973.18 	section 256B.064 for failure to respond. The commissioner shall require the vendor to 
973.19 	measure a single statewide cost of dispensing for specialty prescription drugs and a single 
973.20 	statewide cost of dispensing for nonspecialty prescription drugs for all responding pharmacies 
973.21 	to measure the mean, mean weighted by total prescription volume, mean weighted by 
973.22 	medical assistance prescription volume, median, median weighted by total prescription 
973.23 	volume, and median weighted by total medical assistance prescription volume. The 
973.24 	commissioner shall post a copy of the final cost of dispensing survey report on the 
973.25 	department's website. The initial survey must be completed no later than January 1, 2021, 
973.26 	and repeated every three years. The commissioner shall provide a summary of the results 
973.27 	of each cost of dispensing survey and provide recommendations for any changes to the 
973.28 	dispensing fee to the chairs and ranking minority members of the legislative committees 
973.29 	with jurisdiction over medical assistance pharmacy reimbursement. Notwithstanding section 
973.30 	256.01, subdivision 42, this paragraph does not expire.
973.31 	(i) The commissioner shall increase the ingredient cost reimbursement calculated in 
973.32 	paragraphs (a) and (f) by 1.8 percent for prescription and nonprescription drugs subject to 
973.33 	the wholesale drug distributor tax under section 295.52.

973.34 	EFFECTIVE DATE. This section is effective October 1, 2024.

974.1 	Sec. 7. Minnesota Statutes 2023 Supplement, section 256B.0625, subdivision 13k, is 
974.2 	amended to read:
974.3 		Subd. 13k.Value-based purchasing arrangements. (a) The commissioner may enter 
974.4 	into a value-based purchasing arrangement under medical assistance or MinnesotaCare, by 
974.5 	written arrangement with a drug manufacturer based on agreed-upon metrics. The 
974.6 	commissioner may contract with a vendor to implement and administer the value-based 
974.7 	purchasing arrangement. A value-based purchasing arrangement may include but is not 
974.8 	limited to rebates, discounts, price reductions, risk sharing, reimbursements, guarantees, 
974.9 	shared savings payments, withholds, or bonuses. A value-based purchasing arrangement 
974.10 	must provide at least the same value or discount in the aggregate as would claiming the 
974.11 	mandatory federal drug rebate under the Federal Social Security Act, section 1927.
974.12 	(b) Nothing in this section shall be interpreted as requiring a drug manufacturer or the 
974.13 	commissioner to enter into an arrangement as described in paragraph (a).
974.14 	(c) Nothing in this section shall be interpreted as altering or modifying medical assistance 
974.15 	coverage requirements under the federal Social Security Act, section 1927.
974.16 	(d) If the commissioner determines that a state plan amendment is necessary before 
974.17 	implementing a value-based purchasing arrangement, the commissioner shall request the 
974.18 	amendment and may delay implementing this provision until the amendment is approved.
974.19 	(e) The commissioner may provide separate reimbursement to hospitals for drugs provided 
974.20 	in the inpatient hospital setting as part of a value-based purchasing arrangement. This 
974.21 	payment must be separate from the diagnostic related group reimbursement for the inpatient 
974.22 	admission or discharge associated with a stay during which the patient received a drug under 
974.23 	this section. For payments made under this section, the hospital must not be reimbursed for 
974.24 	the drug under the payment methodology in section 256.969. The commissioner shall 
974.25 	establish the separate reimbursement rate for drugs provided under this section based on 
974.26 	the methodology used for drugs administered in an outpatient setting under section 
974.27 	256B.0625, subdivision 13e, paragraph (e).

974.28 	EFFECTIVE DATE. This section is effective upon federal approval. The commissioner 
974.29 	of human services shall notify the revisor of statutes when federal approval is obtained.

974.30 	Sec. 8. Minnesota Statutes 2023 Supplement, section 256L.04, subdivision 10, is amended 
974.31 	to read:
974.32 		Subd. 10.Citizenship requirements. (a) Eligibility for MinnesotaCare is available to 
974.33 	citizens or nationals of the United States; lawfully present noncitizens as defined in Code 
975.1 	of Federal Regulations, title 8, section 103.12 title 45, section 155.20; and undocumented 
975.2 	noncitizens. For purposes of this subdivision, an undocumented noncitizen is an individual 
975.3 	who resides in the United States without the approval or acquiescence of the United States 
975.4 	Citizenship and Immigration Services. Families with children who are citizens or nationals 
975.5 	of the United States must cooperate in obtaining satisfactory documentary evidence of 
975.6 	citizenship or nationality according to the requirements of the federal Deficit Reduction 
975.7 	Act of 2005, Public Law 109-171.
975.8 	(b) Notwithstanding subdivisions 1 and 7, eligible persons include families and 
975.9 	individuals who are ineligible for medical assistance by reason of immigration status and 
975.10 	who have incomes equal to or less than 200 percent of federal poverty guidelines, except 
975.11 	that these persons may be eligible for emergency medical assistance under section 256B.06, 
975.12 	subdivision 4.

975.13 	EFFECTIVE DATE. This section is effective November 1, 2024.

975.14 	Sec. 9. IMPLEMENTATION OF TEACHING HOSPITAL SURCHARGE AND 
975.15 	GRADUATE MEDICAL EDUCATION SUPPLEMENTAL PAYMENT.
 975.16 	(a) The commissioner of human services shall submit to the Centers for Medicare and 
975.17 	Medicaid Services a request for federal approval to implement the teaching hospital surcharge 
975.18 	under Minnesota Statutes, section 256.9657, subdivision 2a, and the graduate medical 
975.19 	education supplemental payments under Minnesota Statutes, section 256.969, subdivisions 
975.20 	2b and 2g. At least 60 days before submitting the request for approval, the commissioner 
975.21 	of human services shall make available to the public the draft surcharge requirements, draft 
975.22 	supplemental payment rates, and an estimate of each nonexempt hospital's surcharge amount. 
975.23 	The commissioner shall provide at least 60 days for public comment.
975.24 	(b) During the design, and prior to submission, of the request for approval described in 
975.25 	paragraph (a), the commissioner must consult with representatives of eligible hospitals, as 
975.26 	defined in Minnesota Statutes, section 256.969, subdivision 2g.
975.27 	(c) If federal approval is received under paragraph (a), the commissioner shall provide 
975.28 	a 30-day public comment period on the federally approved terms and conditions for the 
975.29 	surcharge and supplemental payments. If, during the 30-day comment period, the 
975.30 	commissioner receives a documented, written statement of opposition from representatives 
975.31 	of one or more eligible hospitals, as defined in Minnesota Statutes, section 256.9657, 
975.32 	subdivision 2a, the commissioner shall publish the written statement and indefinitely suspend 
975.33 	implementation of both the teaching hospital surcharge under Minnesota Statutes, section 
976.1 	256.9657, subdivision 2a, and the supplemental payments under Minnesota Statutes, section 
976.2 	256.969, subdivisions 2b and 2g.
976.3 	(d) By December 15, 2024, the commissioner of health may make recommendations to 
976.4 	the legislature for program modifications and conforming amendments to Minnesota Statutes, 
976.5 	section 62J.692, that are necessary as a result of the amendments to Minnesota Statutes, 
976.6 	section 256.969, subdivisions 2b and 2g. In developing the recommendations under this 
976.7 	paragraph, the commissioner of health must consult with eligible hospitals, as defined in 
976.8 	Minnesota Statutes, section 256.969, subdivision 2g.

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

976.10 	Sec. 10. COUNTY-ADMINISTERED RURAL MEDICAL ASSISTANCE MODEL.
 976.11 		Subdivision 1.Model development. (a) The commissioner of human services, in 
976.12 	collaboration with the Association of Minnesota Counties and county-based purchasing 
976.13 	plans, shall develop a county-administered rural medical assistance (CARMA) model and 
976.14 	a detailed plan for implementing the CARMA model.
976.15 	(b) The CARMA model must be designed to achieve the following objectives:
976.16 	(1) provide a distinct county owned and administered alternative to the prepaid medical 
976.17 	assistance program;
976.18 	(2) facilitate greater integration of health care and social services to address social 
976.19 	determinants of health in rural communities, with the degree of integration of social services 
976.20 	varying with each county's needs and resources;
976.21 	(3) account for the smaller number of medical assistance enrollees and locally available 
976.22 	providers of behavioral health, oral health, specialty and tertiary care, nonemergency medical 
976.23 	transportation, and other health care services in rural communities; and
976.24 	(4) promote greater accountability for health outcomes, health equity, customer service, 
976.25 	community outreach, and cost of care.
976.26 		Subd. 2.County participation. The CARMA model must give each rural county the 
976.27 	option of applying to participate in the CARMA model as an alternative to participation in 
976.28 	the prepaid medical assistance program. The CARMA model must include a process for 
976.29 	the commissioner to determine whether and how a rural county can participate.
976.30 		Subd. 3.Report to the legislature. (a) The commissioner shall report recommendations 
976.31 	and an implementation plan for the CARMA model to the chairs and ranking minority 
976.32 	members of the legislative committees with jurisdiction over health care policy and finance 
977.1 	by January 15, 2025. The CARMA model and implementation plan must address the issues 
977.2 	and consider the recommendations identified in the document titled "Recommendations 
977.3 	Not Contingent on Outcome(s) of Current Litigation," attached to the September 13, 2022, 
977.4 	e-filing to the Second Judicial District Court (Correspondence for Judicial Approval Index 
977.5 	#102), that relates to the final contract decisions of the commissioner of human services 
977.6 	regarding South Country Health Alliance v. Minnesota Department of Human Services, No. 
977.7 	62-CV-22-907 (Ramsey Cnty. Dist. Ct. 2022).
977.8 	(b) The report must also identify the clarifications, approvals, and waivers that are needed 
977.9 	from the Centers for Medicare and Medicaid Services and include any draft legislation 
977.10 	necessary to implement the CARMA model.

977.11 	ARTICLE 55
977.12 	DEPARTMENT OF HUMAN SERVICES HEALTH CARE POLICY

977.13 	Section 1. Minnesota Statutes 2022, section 62M.01, subdivision 3, is amended to read:
977.14 		Subd. 3.Scope. (a) Nothing in this chapter applies to review of claims after submission 
977.15 	to determine eligibility for benefits under a health benefit plan. The appeal procedure 
977.16 	described in section 62M.06 applies to any complaint as defined under section 62Q.68, 
977.17 	subdivision 2, that requires a medical determination in its resolution.
977.18 	(b) Effective January 1, 2026, this chapter does not apply applies to managed care plans 
977.19 	or county-based purchasing plans when the plan is providing coverage to state public health 
977.20 	care program enrollees under chapter 256B or 256L.
977.21 	(c) Effective January 1, 2026, the following sections of this chapter apply to services 
977.22 	delivered under chapters 256B and 256L: 62M.02, subdivisions 1 to 5, 7 to 12, 13, 14 to 
977.23 	18, and 21; 62M.04; 62M.05, subdivisions 1 to 4; 62M.06, subdivisions 1 to 3; 62M.07; 
977.24 	62M.072; 62M.09; 62M.10; 62M.12; 62M.17, subdivision 2; and 62M.18.

977.25 	Sec. 2. Minnesota Statutes 2023 Supplement, section 256.0471, subdivision 1, as amended 
977.26 	by Laws 2024, chapter 80, article 1, section 76, is amended to read:
977.27 		Subdivision 1.Qualifying overpayment. Any overpayment for state-funded medical
977.28 	assistance under chapter 256B and state-funded MinnesotaCare under chapter 256L granted 
977.29 	pursuant to section 256.045, subdivision 10; chapter 256B for state-funded medical 
977.30 	assistance; and for assistance granted under chapters 256D, 256I, and 256K, and 256L for 
977.31 	state-funded MinnesotaCare except agency error claims, become a judgment by operation 
977.32 	of law 90 days after the notice of overpayment is personally served upon the recipient in a 
978.1 	manner that is sufficient under rule 4.03(a) of the Rules of Civil Procedure for district courts, 
978.2 	or by certified mail, return receipt requested. This judgment shall be entitled to full faith 
978.3 	and credit in this and any other state.

978.4 	EFFECTIVE DATE. This section is effective July 1, 2024.

978.5 	Sec. 3. Minnesota Statutes 2022, section 256.9657, subdivision 8, is amended to read:
978.6 		Subd. 8.Commissioner's duties. (a) Beginning October 1, 2023, the commissioner of 
978.7 	human services shall annually report to the chairs and ranking minority members of the 
978.8 	legislative committees with jurisdiction over health care policy and finance regarding the 
978.9 	provider surcharge program. The report shall include information on total billings, total 
978.10 	collections, and administrative expenditures for the previous fiscal year. This paragraph 
978.11 	expires January 1, 2032.
978.12 	(b) (a) The surcharge shall be adjusted by inflationary and caseload changes in future 
978.13 	bienniums to maintain reimbursement of health care providers in accordance with the 
978.14 	requirements of the state and federal laws governing the medical assistance program, 
978.15 	including the requirements of the Medicaid moratorium amendments of 1991 found in 
978.16 	Public Law No. 102-234.
978.17 	(c) (b) The commissioner shall request the Minnesota congressional delegation to support 
978.18 	a change in federal law that would prohibit federal disallowances for any state that makes 
978.19 	a good faith effort to comply with Public Law 102-234 by enacting conforming legislation 
978.20 	prior to the issuance of federal implementing regulations.

978.21 	Sec. 4. Minnesota Statutes 2022, section 256.969, is amended by adding a subdivision to 
978.22 	read:
978.23 		Subd. 2h.Alternate inpatient payment rate for a discharge. (a) Effective retroactively 
978.24 	from January 1, 2024, in any rate year in which a children's hospital discharge is included 
978.25 	in the federally required disproportionate share hospital payment audit, where the patient 
978.26 	discharged had resided in a children's hospital for over 20 years, the commissioner shall 
978.27 	compute an alternate inpatient rate for the children's hospital. The alternate payment rate 
978.28 	must be the rate computed under this section excluding the disproportionate share hospital 
978.29 	payment under subdivision 9, paragraph (d), clause (1), increased by an amount equal to 
978.30 	99 percent of what the disproportionate share hospital payment would have been under 
978.31 	subdivision 9, paragraph (d), clause (1), had the discharge been excluded.
979.1 	(b) In any rate year in which payment to a children's hospital is made using this alternate 
979.2 	payment rate, payments must not be made to the hospital under subdivisions 2e, 2f, and 9.

979.3 	EFFECTIVE DATE. This section is effective upon federal approval. The commissioner 
979.4 	of human services shall notify the revisor of statutes when federal approval is obtained.

979.5 	Sec. 5. Minnesota Statutes 2022, section 256B.056, subdivision 1a, is amended to read:
979.6 		Subd. 1a.Income and assets generally. (a)(1) Unless specifically required by state law 
979.7 	or rule or federal law or regulation, the methodologies used in counting income and assets 
979.8 	to determine eligibility for medical assistance for persons whose eligibility category is based 
979.9 	on blindness, disability, or age of 65 or more years, the methodologies for the Supplemental 
979.10 	Security Income program shall be used, except as provided under in clause (2) and
979.11 	subdivision 3, paragraph (a), clause (6).
979.12 	(2) State tax credits, rebates, and refunds must not be counted as income. State tax credits, 
979.13 	rebates, and refunds must not be counted as assets for a period of 12 months after the month 
979.14 	of receipt.
979.15 	(2) (3) Increases in benefits under title II of the Social Security Act shall not be counted 
979.16 	as income for purposes of this subdivision until July 1 of each year. Effective upon federal 
979.17 	approval, for children eligible under section 256B.055, subdivision 12, or for home and 
979.18 	community-based waiver services whose eligibility for medical assistance is determined 
979.19 	without regard to parental income, child support payments, including any payments made 
979.20 	by an obligor in satisfaction of or in addition to a temporary or permanent order for child 
979.21 	support, and Social Security payments are not counted as income.
979.22 	(b)(1) The modified adjusted gross income methodology as defined in United States 
979.23 	Code, title 42, section 1396a(e)(14), shall be used for eligibility categories based on:
979.24 	(i) children under age 19 and their parents and relative caretakers as defined in section 
979.25 	256B.055, subdivision 3a;
979.26 	(ii) children ages 19 to 20 as defined in section 256B.055, subdivision 16;
979.27 	(iii) pregnant women as defined in section 256B.055, subdivision 6;
979.28 	(iv) infants as defined in sections 256B.055, subdivision 10, and 256B.057, subdivision 
979.29 	1; and
979.30 	(v) adults without children as defined in section 256B.055, subdivision 15.
979.31 	For these purposes, a "methodology" does not include an asset or income standard, or 
979.32 	accounting method, or method of determining effective dates.
980.1 	(2) For individuals whose income eligibility is determined using the modified adjusted 
980.2 	gross income methodology in clause (1):
980.3 	(i) the commissioner shall subtract from the individual's modified adjusted gross income 
980.4 	an amount equivalent to five percent of the federal poverty guidelines; and
980.5 	(ii) the individual's current monthly income and household size is used to determine 
980.6 	eligibility for the 12-month eligibility period. If an individual's income is expected to vary 
980.7 	month to month, eligibility is determined based on the income predicted for the 12-month 
980.8 	eligibility period.

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

980.10 	Sec. 6. Minnesota Statutes 2022, section 256B.056, subdivision 10, is amended to read:
980.11 		Subd. 10.Eligibility verification. (a) The commissioner shall require women who are 
980.12 	applying for the continuation of medical assistance coverage following the end of the 
980.13 	12-month postpartum period to update their income and asset information and to submit 
980.14 	any required income or asset verification.
980.15 	(b) The commissioner shall determine the eligibility of private-sector health care coverage 
980.16 	for infants less than one year of age eligible under section 256B.055, subdivision 10, or 
980.17 	256B.057, subdivision 1, paragraph (c), and shall pay for private-sector coverage if this is 
980.18 	determined to be cost-effective.
980.19 	(c) The commissioner shall verify assets and income for all applicants, and for all 
980.20 	recipients upon renewal.
980.21 	(d) The commissioner shall utilize information obtained through the electronic service 
980.22 	established by the secretary of the United States Department of Health and Human Services 
980.23 	and other available electronic data sources in Code of Federal Regulations, title 42, sections 
980.24 	435.940 to 435.956, to verify eligibility requirements. The commissioner shall establish 
980.25 	standards to define when information obtained electronically is reasonably compatible with 
980.26 	information provided by applicants and enrollees, including use of self-attestation, to 
980.27 	accomplish real-time eligibility determinations and maintain program integrity.
980.28 	(e) Each person applying for or receiving medical assistance under section 256B.055, 
980.29 	subdivision 7, and any other person whose resources are required by law to be disclosed to 
980.30 	determine the applicant's or recipient's eligibility must authorize the commissioner to obtain 
980.31 	information from financial institutions to identify unreported accounts verify assets as 
980.32 	required in section 256.01, subdivision 18f. If a person refuses or revokes the authorization, 
980.33 	the commissioner may determine that the applicant or recipient is ineligible for medical 
981.1 	assistance. For purposes of this paragraph, an authorization to identify unreported accounts
981.2 	verify assets meets the requirements of the Right to Financial Privacy Act, United States 
981.3 	Code, title 12, chapter 35, and need not be furnished to the financial institution.
981.4 	(f) County and tribal agencies shall comply with the standards established by the 
981.5 	commissioner for appropriate use of the asset verification system specified in section 256.01, 
981.6 	subdivision 18f.

981.7 	Sec. 7. Minnesota Statutes 2023 Supplement, section 256B.0622, subdivision 8, is amended 
981.8 	to read:
981.9 		Subd. 8.Medical assistance payment for assertive community treatment and 
981.10 	intensive residential treatment services. (a) Payment for intensive residential treatment 
981.11 	services and assertive community treatment in this section shall be based on one daily rate 
981.12 	per provider inclusive of the following services received by an eligible client in a given 
981.13 	calendar day: all rehabilitative services under this section, staff travel time to provide 
981.14 	rehabilitative services under this section, and nonresidential crisis stabilization services 
981.15 	under section 256B.0624.
981.16 	(b) Except as indicated in paragraph (c), payment will not be made to more than one 
981.17 	entity for each client for services provided under this section on a given day. If services 
981.18 	under this section are provided by a team that includes staff from more than one entity, the 
981.19 	team must determine how to distribute the payment among the members.
981.20 	(c) The commissioner shall determine one rate for each provider that will bill medical 
981.21 	assistance for residential services under this section and one rate for each assertive community 
981.22 	treatment provider. If a single entity provides both services, one rate is established for the 
981.23 	entity's residential services and another rate for the entity's nonresidential services under 
981.24 	this section. A provider is not eligible for payment under this section without authorization 
981.25 	from the commissioner. The commissioner shall develop rates using the following criteria:
981.26 	(1) the provider's cost for services shall include direct services costs, other program 
981.27 	costs, and other costs determined as follows:
981.28 	(i) the direct services costs must be determined using actual costs of salaries, benefits, 
981.29 	payroll taxes, and training of direct service staff and service-related transportation;
981.30 	(ii) other program costs not included in item (i) must be determined as a specified 
981.31 	percentage of the direct services costs as determined by item (i). The percentage used shall 
981.32 	be determined by the commissioner based upon the average of percentages that represent 
982.1 	the relationship of other program costs to direct services costs among the entities that provide 
982.2 	similar services;
982.3 	(iii) physical plant costs calculated based on the percentage of space within the program 
982.4 	that is entirely devoted to treatment and programming. This does not include administrative 
982.5 	or residential space;
982.6 	(iv) assertive community treatment physical plant costs must be reimbursed as part of 
982.7 	the costs described in item (ii); and
982.8 	(v) subject to federal approval, up to an additional five percent of the total rate may be 
982.9 	added to the program rate as a quality incentive based upon the entity meeting performance 
982.10 	criteria specified by the commissioner;
982.11 	(2) actual cost is defined as costs which are allowable, allocable, and reasonable, and 
982.12 	consistent with federal reimbursement requirements under Code of Federal Regulations, 
982.13 	title 48, chapter 1, part 31, relating to for-profit entities, and Office of Management and 
982.14 	Budget Circular Number A-122, relating to nonprofit entities;
982.15 	(3) the number of service units;
982.16 	(4) the degree to which clients will receive services other than services under this section; 
982.17 	and
982.18 	(5) the costs of other services that will be separately reimbursed.
982.19 	(d) The rate for intensive residential treatment services and assertive community treatment 
982.20 	must exclude the medical assistance room and board rate, as defined in section 256B.056, 
982.21 	subdivision 5d, and services not covered under this section, such as partial hospitalization, 
982.22 	home care, and inpatient services.
982.23 	(e) Physician services that are not separately billed may be included in the rate to the 
982.24 	extent that a psychiatrist, or other health care professional providing physician services 
982.25 	within their scope of practice, is a member of the intensive residential treatment services 
982.26 	treatment team. Physician services, whether billed separately or included in the rate, may 
982.27 	be delivered by telehealth. For purposes of this paragraph, "telehealth" has the meaning 
982.28 	given to "mental health telehealth" in section 256B.0625, subdivision 46, when telehealth 
982.29 	is used to provide intensive residential treatment services.
982.30 	(f) When services under this section are provided by an assertive community treatment 
982.31 	provider, case management functions must be an integral part of the team.
983.1 	(g) The rate for a provider must not exceed the rate charged by that provider for the 
983.2 	same service to other payors.
983.3 	(h) The rates for existing programs must be established prospectively based upon the 
983.4 	expenditures and utilization over a prior 12-month period using the criteria established in 
983.5 	paragraph (c). The rates for new programs must be established based upon estimated 
983.6 	expenditures and estimated utilization using the criteria established in paragraph (c).
983.7 	(i) Effective for the rate years beginning on and after January 1, 2024, rates for assertive 
983.8 	community treatment, adult residential crisis stabilization services, and intensive residential 
983.9 	treatment services must be annually adjusted for inflation using the Centers for Medicare 
983.10 	and Medicaid Services Medicare Economic Index, as forecasted in the fourth third quarter 
983.11 	of the calendar year before the rate year. The inflation adjustment must be based on the 
983.12 	12-month period from the midpoint of the previous rate year to the midpoint of the rate year 
983.13 	for which the rate is being determined.
983.14 	(j) Entities who discontinue providing services must be subject to a settle-up process 
983.15 	whereby actual costs and reimbursement for the previous 12 months are compared. In the 
983.16 	event that the entity was paid more than the entity's actual costs plus any applicable 
983.17 	performance-related funding due the provider, the excess payment must be reimbursed to 
983.18 	the department. If a provider's revenue is less than actual allowed costs due to lower 
983.19 	utilization than projected, the commissioner may reimburse the provider to recover its actual 
983.20 	allowable costs. The resulting adjustments by the commissioner must be proportional to the 
983.21 	percent of total units of service reimbursed by the commissioner and must reflect a difference 
983.22 	of greater than five percent.
983.23 	(k) A provider may request of the commissioner a review of any rate-setting decision 
983.24 	made under this subdivision.

983.25 	Sec. 8. Minnesota Statutes 2023 Supplement, section 256B.0625, subdivision 9, is amended 
983.26 	to read:
983.27 		Subd. 9.Dental services. (a) Medical assistance covers medically necessary dental 
983.28 	services.
983.29 	(b) The following guidelines apply to dental services:
983.30 	(1) posterior fillings are paid at the amalgam rate;
983.31 	(2) application of sealants are covered once every five years per permanent molar; and
983.32 	(3) application of fluoride varnish is covered once every six months.
984.1 	(c) In addition to the services specified in paragraph (b) (a), medical assistance covers 
984.2 	the following services:
984.3 	(1) house calls or extended care facility calls for on-site delivery of covered services;
984.4 	(2) behavioral management when additional staff time is required to accommodate 
984.5 	behavioral challenges and sedation is not used;
984.6 	(3) oral or IV sedation, if the covered dental service cannot be performed safely without 
984.7 	it or would otherwise require the service to be performed under general anesthesia in a 
984.8 	hospital or surgical center; and
984.9 	(4) prophylaxis, in accordance with an appropriate individualized treatment plan, but 
984.10 	no more than four times per year.
984.11 	(d) The commissioner shall not require prior authorization for the services included in 
984.12 	paragraph (c), clauses (1) to (3), and shall prohibit managed care and county-based purchasing 
984.13 	plans from requiring prior authorization for the services included in paragraph (c), clauses 
984.14 	(1) to (3), when provided under sections 256B.69, 256B.692, and 256L.12.

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

984.16 	Sec. 9. Minnesota Statutes 2023 Supplement, section 256B.0625, subdivision 13e, as 
984.17 	amended by Laws 2024, chapter 85, section 66, is amended to read:
984.18 		Subd. 13e.Payment rates. (a) The basis for determining the amount of payment shall 
984.19 	be the lower of the ingredient costs of the drugs plus the professional dispensing fee; or the 
984.20 	usual and customary price charged to the public. The usual and customary price means the 
984.21 	lowest price charged by the provider to a patient who pays for the prescription by cash, 
984.22 	check, or charge account and includes prices the pharmacy charges to a patient enrolled in 
984.23 	a prescription savings club or prescription discount club administered by the pharmacy or 
984.24 	pharmacy chain, unless the prescription savings club or prescription discount club is one 
984.25 	in which an individual pays a recurring monthly access fee for unlimited access to a defined 
984.26 	list of drugs for which the pharmacy does not bill the member or a payer on a 
984.27 	per-standard-transaction basis. The amount of payment basis must be reduced to reflect all 
984.28 	discount amounts applied to the charge by any third-party provider/insurer agreement or 
984.29 	contract for submitted charges to medical assistance programs. The net submitted charge 
984.30 	may not be greater than the patient liability for the service. The professional dispensing fee 
984.31 	shall be $10.77 for prescriptions filled with legend drugs meeting the definition of "covered 
984.32 	outpatient drugs" according to United States Code, title 42, section 1396r-8(k)(2). The 
984.33 	dispensing fee for intravenous solutions that must be compounded by the pharmacist shall 
985.1 	be $10.77 per claim. The professional dispensing fee for prescriptions filled with 
985.2 	over-the-counter drugs meeting the definition of covered outpatient drugs shall be $10.77 
985.3 	for dispensed quantities equal to or greater than the number of units contained in the 
985.4 	manufacturer's original package. The professional dispensing fee shall be prorated based 
985.5 	on the percentage of the package dispensed when the pharmacy dispenses a quantity less 
985.6 	than the number of units contained in the manufacturer's original package. The pharmacy 
985.7 	dispensing fee for prescribed over-the-counter drugs not meeting the definition of covered 
985.8 	outpatient drugs shall be $3.65 for quantities equal to or greater than the number of units 
985.9 	contained in the manufacturer's original package and shall be prorated based on the 
985.10 	percentage of the package dispensed when the pharmacy dispenses a quantity less than the 
985.11 	number of units contained in the manufacturer's original package. The National Average 
985.12 	Drug Acquisition Cost (NADAC) shall be used to determine the ingredient cost of a drug. 
985.13 	For drugs for which a NADAC is not reported, the commissioner shall estimate the ingredient 
985.14 	cost at the wholesale acquisition cost minus two percent. The ingredient cost of a drug for 
985.15 	a provider participating in the federal 340B Drug Pricing Program shall be either the 340B 
985.16 	Drug Pricing Program ceiling price established by the Health Resources and Services 
985.17 	Administration or NADAC, whichever is lower. Wholesale acquisition cost is defined as 
985.18 	the manufacturer's list price for a drug or biological to wholesalers or direct purchasers in 
985.19 	the United States, not including prompt pay or other discounts, rebates, or reductions in 
985.20 	price, for the most recent month for which information is available, as reported in wholesale 
985.21 	price guides or other publications of drug or biological pricing data. The maximum allowable 
985.22 	cost of a multisource drug may be set by the commissioner and it shall be comparable to 
985.23 	the actual acquisition cost of the drug product and no higher than the NADAC of the generic 
985.24 	product. Establishment of the amount of payment for drugs shall not be subject to the 
985.25 	requirements of the Administrative Procedure Act.
985.26 	(b) Pharmacies dispensing prescriptions to residents of long-term care facilities using 
985.27 	an automated drug distribution system meeting the requirements of section 151.58, or a 
985.28 	packaging system meeting the packaging standards set forth in Minnesota Rules, part 
985.29 	6800.2700, that govern the return of unused drugs to the pharmacy for reuse, may employ 
985.30 	retrospective billing for prescription drugs dispensed to long-term care facility residents. A 
985.31 	retrospectively billing pharmacy must submit a claim only for the quantity of medication 
985.32 	used by the enrolled recipient during the defined billing period. A retrospectively billing 
985.33 	pharmacy must use a billing period not less than one calendar month or 30 days.
985.34 	(c) A pharmacy provider using packaging that meets the standards set forth in Minnesota 
985.35 	Rules, part 6800.2700, is required to credit the department for the actual acquisition cost 
986.1 	of all unused drugs that are eligible for reuse, unless the pharmacy is using retrospective 
986.2 	billing. The commissioner may permit the drug clozapine to be dispensed in a quantity that 
986.3 	is less than a 30-day supply.
986.4 	(d) If a pharmacy dispenses a multisource drug, the ingredient cost shall be the NADAC 
986.5 	of the generic product or the maximum allowable cost established by the commissioner 
986.6 	unless prior authorization for the brand name product has been granted according to the 
986.7 	criteria established by the Drug Formulary Committee as required by subdivision 13f, 
986.8 	paragraph (a), and the prescriber has indicated "dispense as written" on the prescription in 
986.9 	a manner consistent with section 151.21, subdivision 2.
986.10 	(e) The basis for determining the amount of payment for drugs administered in an 
986.11 	outpatient setting shall be the lower of the usual and customary cost submitted by the 
986.12 	provider, 106 percent of the average sales price as determined by the United States 
986.13 	Department of Health and Human Services pursuant to title XVIII, section 1847a of the 
986.14 	federal Social Security Act, the specialty pharmacy rate, or the maximum allowable cost 
986.15 	set by the commissioner. If average sales price is unavailable, the amount of payment must 
986.16 	be lower of the usual and customary cost submitted by the provider, the wholesale acquisition 
986.17 	cost, the specialty pharmacy rate, or the maximum allowable cost set by the commissioner. 
986.18 	The commissioner shall discount the payment rate for drugs obtained through the federal 
986.19 	340B Drug Pricing Program by 28.6 percent. The payment for drugs administered in an 
986.20 	outpatient setting shall be made to the administering facility or practitioner. A retail or 
986.21 	specialty pharmacy dispensing a drug for administration in an outpatient setting is not 
986.22 	eligible for direct reimbursement.
986.23 	(f) The commissioner may establish maximum allowable cost rates for specialty pharmacy 
986.24 	products that are lower than the ingredient cost formulas specified in paragraph (a). The 
986.25 	commissioner may require individuals enrolled in the health care programs administered 
986.26 	by the department to obtain specialty pharmacy products from providers with whom the 
986.27 	commissioner has negotiated lower reimbursement rates. Specialty pharmacy products are 
986.28 	defined as those used by a small number of recipients or recipients with complex and chronic 
986.29 	diseases that require expensive and challenging drug regimens. Examples of these conditions 
986.30 	include, but are not limited to: multiple sclerosis, HIV/AIDS, transplantation, hepatitis C, 
986.31 	growth hormone deficiency, Crohn's Disease, rheumatoid arthritis, and certain forms of 
986.32 	cancer. Specialty pharmaceutical products include injectable and infusion therapies, 
986.33 	biotechnology drugs, antihemophilic factor products, high-cost therapies, and therapies that 
986.34 	require complex care. The commissioner shall consult with the Formulary Committee to 
986.35 	develop a list of specialty pharmacy products subject to maximum allowable cost 
987.1 	reimbursement. In consulting with the Formulary Committee in developing this list, the 
987.2 	commissioner shall take into consideration the population served by specialty pharmacy 
987.3 	products, the current delivery system and standard of care in the state, and access to care 
987.4 	issues. The commissioner shall have the discretion to adjust the maximum allowable cost 
987.5 	to prevent access to care issues.
987.6 	(g) Home infusion therapy services provided by home infusion therapy pharmacies must 
987.7 	be paid at rates according to subdivision 8d.
987.8 	(h) The commissioner shall contract with a vendor to conduct a cost of dispensing survey 
987.9 	for all pharmacies that are physically located in the state of Minnesota that dispense outpatient 
987.10 	drugs under medical assistance. The commissioner shall ensure that the vendor has prior 
987.11 	experience in conducting cost of dispensing surveys. Each pharmacy enrolled with the 
987.12 	department to dispense outpatient prescription drugs to fee-for-service members must 
987.13 	respond to the cost of dispensing survey. The commissioner may sanction a pharmacy under 
987.14 	section 256B.064 for failure to respond. The commissioner shall require the vendor to 
987.15 	measure a single statewide cost of dispensing for specialty prescription drugs and a single 
987.16 	statewide cost of dispensing for nonspecialty prescription drugs for all responding pharmacies 
987.17 	to measure the mean, mean weighted by total prescription volume, mean weighted by 
987.18 	medical assistance prescription volume, median, median weighted by total prescription 
987.19 	volume, and median weighted by total medical assistance prescription volume. The 
987.20 	commissioner shall post a copy of the final cost of dispensing survey report on the 
987.21 	department's website. The initial survey must be completed no later than January 1, 2021, 
987.22 	and repeated every three years. The commissioner shall provide a summary of the results 
987.23 	of each cost of dispensing survey and provide recommendations for any changes to the 
987.24 	dispensing fee to the chairs and ranking minority members of the legislative committees 
987.25 	with jurisdiction over medical assistance pharmacy reimbursement. Notwithstanding section 
987.26 	256.01, subdivision 42, this paragraph does not expire.
987.27 	(i) The commissioner shall increase the ingredient cost reimbursement calculated in 
987.28 	paragraphs (a) and (f) by 1.8 percent for prescription and nonprescription drugs subject to 
987.29 	the wholesale drug distributor tax under section 295.52.

987.30 	Sec. 10. Minnesota Statutes 2022, section 256B.0625, is amended by adding a subdivision 
987.31 	to read:
987.32 		Subd. 25c.Applicability of utilization review provisions. Effective January 1, 2026, 
987.33 	the following provisions of chapter 62M apply to the commissioner when delivering services 
987.34 	under chapters 256B and 256L: 62M.02, subdivisions 1 to 5, 7 to 12, 13, 14 to 18, and 21; 
988.1 	62M.04; 62M.05, subdivisions 1 to 4; 62M.06, subdivisions 1 to 3; 62M.07; 62M.072; 
988.2 	62M.09; 62M.10; 62M.12; 62M.17, subdivision 2; and 62M.18.

988.3 	Sec. 11. Minnesota Statutes 2023 Supplement, section 256B.0701, subdivision 6, is 
988.4 	amended to read:
988.5 		Subd. 6.Recuperative care facility rate. (a) The recuperative care facility rate is for 
988.6 	facility costs and must be paid from state money in an amount equal to the medical assistance 
988.7 	room and board MSA equivalent rate as defined in section 256I.03, subdivision 11a, at the 
988.8 	time the recuperative care services were provided. The eligibility standards in chapter 256I
988.9 	do not apply to the recuperative care facility rate. The recuperative care facility rate is only 
988.10 	paid when the recuperative care services rate is paid to a provider. Providers may opt to 
988.11 	only receive the recuperative care services rate.
988.12 	(b) Before a recipient is discharged from a recuperative care setting, the provider must 
988.13 	ensure that the recipient's medical condition is stabilized or that the recipient is being 
988.14 	discharged to a setting that is able to meet that recipient's needs.

988.15 	Sec. 12. Minnesota Statutes 2023 Supplement, section 256B.0947, subdivision 7, is 
988.16 	amended to read:
988.17 		Subd. 7.Medical assistance payment and rate setting. (a) Payment for services in this 
988.18 	section must be based on one daily encounter rate per provider inclusive of the following 
988.19 	services received by an eligible client in a given calendar day: all rehabilitative services, 
988.20 	supports, and ancillary activities under this section, staff travel time to provide rehabilitative 
988.21 	services under this section, and crisis response services under section 256B.0624.
988.22 	(b) Payment must not be made to more than one entity for each client for services 
988.23 	provided under this section on a given day. If services under this section are provided by a 
988.24 	team that includes staff from more than one entity, the team shall determine how to distribute 
988.25 	the payment among the members.
988.26 	(c) The commissioner shall establish regional cost-based rates for entities that will bill 
988.27 	medical assistance for nonresidential intensive rehabilitative mental health services. In 
988.28 	developing these rates, the commissioner shall consider:
988.29 	(1) the cost for similar services in the health care trade area;
988.30 	(2) actual costs incurred by entities providing the services;
988.31 	(3) the intensity and frequency of services to be provided to each client;
989.1 	(4) the degree to which clients will receive services other than services under this section; 
989.2 	and
989.3 	(5) the costs of other services that will be separately reimbursed.
989.4 	(d) The rate for a provider must not exceed the rate charged by that provider for the 
989.5 	same service to other payers.
989.6 	(e) Effective for the rate years beginning on and after January 1, 2024, rates must be 
989.7 	annually adjusted for inflation using the Centers for Medicare and Medicaid Services 
989.8 	Medicare Economic Index, as forecasted in the fourth third quarter of the calendar year 
989.9 	before the rate year. The inflation adjustment must be based on the 12-month period from 
989.10 	the midpoint of the previous rate year to the midpoint of the rate year for which the rate is 
989.11 	being determined.

989.12 	Sec. 13. Minnesota Statutes 2023 Supplement, section 256B.764, is amended to read:
989.13 	256B.764 REIMBURSEMENT FOR FAMILY PLANNING SERVICES.
989.14 	(a) Effective for services rendered on or after July 1, 2007, payment rates for family 
989.15 	planning services shall be increased by 25 percent over the rates in effect June 30, 2007, 
989.16 	when these services are provided by a community clinic as defined in section 145.9268, 
989.17 	subdivision 1.
989.18 	(b) Effective for services rendered on or after July 1, 2013, payment rates for family 
989.19 	planning services shall be increased by 20 percent over the rates in effect June 30, 2013, 
989.20 	when these services are provided by a community clinic as defined in section 145.9268, 
989.21 	subdivision 1. The commissioner shall adjust capitation rates to managed care and 
989.22 	county-based purchasing plans to reflect this increase, and shall require plans to pass on the 
989.23 	full amount of the rate increase to eligible community clinics, in the form of higher payment 
989.24 	rates for family planning services.
989.25 	(c) Effective for services provided on or after January 1, 2024, payment rates for family 
989.26 	planning, when such services are provided by an eligible community clinic as defined in 
989.27 	section 145.9268, subdivision 1, and abortion services shall be increased by 20 percent. 
989.28 	This increase does not apply to federally qualified health centers, rural health centers, or 
989.29 	Indian health services.

990.1 	Sec. 14. Minnesota Statutes 2023 Supplement, section 256L.03, subdivision 1, is amended 
990.2 	to read:
990.3 		Subdivision 1.Covered health services. (a) "Covered health services" means the health 
990.4 	services reimbursed under chapter 256B, with the exception of special education services, 
990.5 	home care nursing services, adult dental care services other than services covered under 
990.6 	section 256B.0625, subdivision 9, orthodontic services, nonemergency medical transportation 
990.7 	services, personal care assistance and case management services, community first services 
990.8 	and supports under section 256B.85, behavioral health home services under section 
990.9 	256B.0757, housing stabilization services under section 256B.051, and nursing home or 
990.10 	intermediate care facilities services.
990.11 	(b) Covered health services shall be expanded as provided in this section.
990.12 	(c) For the purposes of covered health services under this section, "child" means an 
990.13 	individual younger than 19 years of age.

990.14 	Sec. 15. Minnesota Statutes 2022, section 524.3-801, as amended by Laws 2024, chapter 
990.15 	79, article 9, section 20, is amended to read:
990.16 	524.3-801 NOTICE TO CREDITORS.
990.17 	(a) Unless notice has already been given under this section, upon appointment of a 
990.18 	general personal representative in informal proceedings or upon the filing of a petition for 
990.19 	formal appointment of a general personal representative, notice thereof, in the form prescribed 
990.20 	by court rule, shall be given under the direction of the court administrator by publication 
990.21 	once a week for two successive weeks in a legal newspaper in the county wherein the 
990.22 	proceedings are pending giving the name and address of the general personal representative 
990.23 	and notifying creditors of the estate to present their claims within four months after the date 
990.24 	of the court administrator's notice which is subsequently published or be forever barred, 
990.25 	unless they are entitled to further service of notice under paragraph (b) or (c).
990.26 	(b) The personal representative shall, within three months after the date of the first 
990.27 	publication of the notice, serve a copy of the notice upon each then known and identified 
990.28 	creditor in the manner provided in paragraph (c). If the decedent or a predeceased spouse 
990.29 	of the decedent received assistance for which a claim could be filed under section 246.53, 
990.30 	256B.15, 256D.16, or 261.04, notice to the commissioner of human services or direct care 
990.31 	and treatment executive board, as applicable, must be given under paragraph (d) instead of 
990.32 	under this paragraph or paragraph (c). A creditor is "known" if: (i) the personal representative 
990.33 	knows that the creditor has asserted a claim that arose during the decedent's life against 
991.1 	either the decedent or the decedent's estate; (ii) the creditor has asserted a claim that arose 
991.2 	during the decedent's life and the fact is clearly disclosed in accessible financial records 
991.3 	known and available to the personal representative; or (iii) the claim of the creditor would 
991.4 	be revealed by a reasonably diligent search for creditors of the decedent in accessible 
991.5 	financial records known and available to the personal representative. Under this section, a 
991.6 	creditor is "identified" if the personal representative's knowledge of the name and address 
991.7 	of the creditor will permit service of notice to be made under paragraph (c).
991.8 	(c) Unless the claim has already been presented to the personal representative or paid, 
991.9 	the personal representative shall serve a copy of the notice required by paragraph (b) upon 
991.10 	each creditor of the decedent who is then known to the personal representative and identified 
991.11 	either by delivery of a copy of the required notice to the creditor, or by mailing a copy of 
991.12 	the notice to the creditor by certified, registered, or ordinary first class mail addressed to 
991.13 	the creditor at the creditor's office or place of residence.
991.14 	(d)(1) Effective for decedents dying on or after July 1, 1997, if the decedent or a 
991.15 	predeceased spouse of the decedent received assistance for which a claim could be filed 
991.16 	under section 246.53, 256B.15, 256D.16, or 261.04, the personal representative or the 
991.17 	attorney for the personal representative shall serve the commissioner or executive board, 
991.18 	as applicable, with notice in the manner prescribed in paragraph (c), or electronically in a 
991.19 	manner prescribed by the commissioner or executive board, as soon as practicable after the 
991.20 	appointment of the personal representative. The notice must state the decedent's full name, 
991.21 	date of birth, and Social Security number and, to the extent then known after making a 
991.22 	reasonably diligent inquiry, the full name, date of birth, and Social Security number for 
991.23 	each of the decedent's predeceased spouses. The notice may also contain a statement that, 
991.24 	after making a reasonably diligent inquiry, the personal representative has determined that 
991.25 	the decedent did not have any predeceased spouses or that the personal representative has 
991.26 	been unable to determine one or more of the previous items of information for a predeceased 
991.27 	spouse of the decedent. A copy of the notice to creditors must be attached to and be a part 
991.28 	of the notice to the commissioner or executive board.
991.29 	(2) Notwithstanding a will or other instrument or law to the contrary, except as allowed 
991.30 	in this paragraph, no property subject to administration by the estate may be distributed by 
991.31 	the estate or the personal representative until 70 days after the date the notice is served on 
991.32 	the commissioner or executive board as provided in paragraph (c), unless the local agency 
991.33 	consents as provided for in clause (6). This restriction on distribution does not apply to the 
991.34 	personal representative's sale of real or personal property, but does apply to the net proceeds 
991.35 	the estate receives from these sales. The personal representative, or any person with personal 
992.1 	knowledge of the facts, may provide an affidavit containing the description of any real or 
992.2 	personal property affected by this paragraph and stating facts showing compliance with this 
992.3 	paragraph. If the affidavit describes real property, it may be filed or recorded in the office 
992.4 	of the county recorder or registrar of titles for the county where the real property is located. 
992.5 	This paragraph does not apply to proceedings under sections 524.3-1203 and 525.31, or 
992.6 	when a duly authorized agent of a county is acting as the personal representative of the 
992.7 	estate.
992.8 	(3) At any time before an order or decree is entered under section 524.3-1001 or 
992.9 	524.3-1002, or a closing statement is filed under section 524.3-1003, the personal 
992.10 	representative or the attorney for the personal representative may serve an amended notice 
992.11 	on the commissioner or executive board to add variations or other names of the decedent 
992.12 	or a predeceased spouse named in the notice, the name of a predeceased spouse omitted 
992.13 	from the notice, to add or correct the date of birth or Social Security number of a decedent 
992.14 	or predeceased spouse named in the notice, or to correct any other deficiency in a prior 
992.15 	notice. The amended notice must state the decedent's name, date of birth, and Social Security 
992.16 	number, the case name, case number, and district court in which the estate is pending, and 
992.17 	the date the notice being amended was served on the commissioner or executive board. If 
992.18 	the amendment adds the name of a predeceased spouse omitted from the notice, it must also 
992.19 	state that spouse's full name, date of birth, and Social Security number. The amended notice 
992.20 	must be served on the commissioner or executive board in the same manner as the original 
992.21 	notice. Upon service, the amended notice relates back to and is effective from the date the 
992.22 	notice it amends was served, and the time for filing claims arising under section 246.53, 
992.23 	256B.15, 256D.16 or 261.04 is extended by 60 days from the date of service of the amended 
992.24 	notice. Claims filed during the 60-day period are undischarged and unbarred claims, may 
992.25 	be prosecuted by the entities entitled to file those claims in accordance with section 
992.26 	524.3-1004, and the limitations in section 524.3-1006 do not apply. The personal 
992.27 	representative or any person with personal knowledge of the facts may provide and file or 
992.28 	record an affidavit in the same manner as provided for in clause (1).
992.29 	(4) Within one year after the date an order or decree is entered under section 524.3-1001
992.30 	or 524.3-1002 or a closing statement is filed under section 524.3-1003, any person who has 
992.31 	an interest in property that was subject to administration by the estate may serve an amended 
992.32 	notice on the commissioner or executive board to add variations or other names of the 
992.33 	decedent or a predeceased spouse named in the notice, the name of a predeceased spouse 
992.34 	omitted from the notice, to add or correct the date of birth or Social Security number of a 
992.35 	decedent or predeceased spouse named in the notice, or to correct any other deficiency in 
993.1 	a prior notice. The amended notice must be served on the commissioner or executive board 
993.2 	in the same manner as the original notice and must contain the information required for 
993.3 	amendments under clause (3). If the amendment adds the name of a predeceased spouse 
993.4 	omitted from the notice, it must also state that spouse's full name, date of birth, and Social 
993.5 	Security number. Upon service, the amended notice relates back to and is effective from 
993.6 	the date the notice it amends was served. If the amended notice adds the name of an omitted 
993.7 	predeceased spouse or adds or corrects the Social Security number or date of birth of the 
993.8 	decedent or a predeceased spouse already named in the notice, then, notwithstanding any 
993.9 	other laws to the contrary, claims against the decedent's estate on account of those persons 
993.10 	resulting from the amendment and arising under section 246.53, 256B.15, 256D.16, or 
993.11 	261.04 are undischarged and unbarred claims, may be prosecuted by the entities entitled to 
993.12 	file those claims in accordance with section 524.3-1004, and the limitations in section 
993.13 	524.3-1006 do not apply. The person filing the amendment or any other person with personal 
993.14 	knowledge of the facts may provide and file or record an affidavit describing affected real 
993.15 	or personal property in the same manner as clause (1).
993.16 	(5) After one year from the date an order or decree is entered under section 524.3-1001
993.17 	or 524.3-1002, or a closing statement is filed under section 524.3-1003, no error, omission, 
993.18 	or defect of any kind in the notice to the commissioner or executive board required under 
993.19 	this paragraph or in the process of service of the notice on the commissioner or executive 
993.20 	board, or the failure to serve the commissioner or executive board with notice as required 
993.21 	by this paragraph, makes any distribution of property by a personal representative void or 
993.22 	voidable. The distributee's title to the distributed property shall be free of any claims based 
993.23 	upon a failure to comply with this paragraph.
993.24 	(6) The local agency may consent to a personal representative's request to distribute 
993.25 	property subject to administration by the estate to distributees during the 70-day period after 
993.26 	service of notice on the commissioner or executive board. The local agency may grant or 
993.27 	deny the request in whole or in part and may attach conditions to its consent as it deems 
993.28 	appropriate. When the local agency consents to a distribution, it shall give the estate a written 
993.29 	certificate evidencing its consent to the early distribution of assets at no cost. The certificate 
993.30 	must include the name, case number, and district court in which the estate is pending, the 
993.31 	name of the local agency, describe the specific real or personal property to which the consent 
993.32 	applies, state that the local agency consents to the distribution of the specific property 
993.33 	described in the consent during the 70-day period following service of the notice on the 
993.34 	commissioner or executive board, state that the consent is unconditional or list all of the 
993.35 	terms and conditions of the consent, be dated, and may include other contents as may be 
994.1 	appropriate. The certificate must be signed by the director of the local agency or the director's 
994.2 	designees and is effective as of the date it is dated unless it provides otherwise. The signature 
994.3 	of the director or the director's designee does not require any acknowledgment. The certificate 
994.4 	shall be prima facie evidence of the facts it states, may be attached to or combined with a 
994.5 	deed or any other instrument of conveyance and, when so attached or combined, shall 
994.6 	constitute a single instrument. If the certificate describes real property, it shall be accepted 
994.7 	for recording or filing by the county recorder or registrar of titles in the county in which the 
994.8 	property is located. If the certificate describes real property and is not attached to or combined 
994.9 	with a deed or other instrument of conveyance, it shall be accepted for recording or filing 
994.10 	by the county recorder or registrar of titles in the county in which the property is located. 
994.11 	The certificate constitutes a waiver of the 70-day period provided for in clause (2) with 
994.12 	respect to the property it describes and is prima facie evidence of service of notice on the 
994.13 	commissioner or executive board. The certificate is not a waiver or relinquishment of any 
994.14 	claims arising under section 246.53, 256B.15, 256D.16, or 261.04, and does not otherwise 
994.15 	constitute a waiver of any of the personal representative's duties under this paragraph. 
994.16 	Distributees who receive property pursuant to a consent to an early distribution shall remain 
994.17 	liable to creditors of the estate as provided for by law.
994.18 	(7) All affidavits provided for under this paragraph:
994.19 	(i) shall be provided by persons who have personal knowledge of the facts stated in the 
994.20 	affidavit;
994.21 	(ii) may be filed or recorded in the office of the county recorder or registrar of titles in 
994.22 	the county in which the real property they describe is located for the purpose of establishing 
994.23 	compliance with the requirements of this paragraph; and
994.24 	(iii) are prima facie evidence of the facts stated in the affidavit.
994.25 	(8) This paragraph applies to the estates of decedents dying on or after July 1, 1997. 
994.26 	Clause (5) also applies with respect to all notices served on the commissioner of human 
994.27 	services before July 1, 1997, under Laws 1996, chapter 451, article 2, section 55. All notices 
994.28 	served on the commissioner before July 1, 1997, pursuant to Laws 1996, chapter 451, article 
994.29 	2, section 55, shall be deemed to be legally sufficient for the purposes for which they were 
994.30 	intended, notwithstanding any errors, omissions or other defects.

995.1 	Sec. 16. DIRECTION TO COMMISSIONER; REIMBURSEMENT FOR 
995.2 	EXTRACORPOREAL MEMBRANE OXYGENATION CANNULATION AS AN 
995.3 	OUTPATIENT SERVICE.
 995.4 	The commissioner of human services, in consultation with providers and hospitals, shall 
995.5 	determine the feasibility of an outpatient reimbursement mechanism for medical assistance 
995.6 	coverage of extracorporeal membrane oxygenation (ECMO) cannulation performed outside 
995.7 	an inpatient hospital setting or in a self-contained mobile ECMO unit. If an outpatient 
995.8 	reimbursement mechanism is feasible, then the commissioner of human services shall 
995.9 	develop a recommended payment mechanism. By January 15, 2025, the commissioner of 
995.10 	human services shall submit a recommendation and the required legislative language to the 
995.11 	chairs and ranking minority members of the legislative committees with jurisdiction over 
995.12 	health care finance. If such a payment mechanism is infeasible, the commissioner of human 
995.13 	services shall submit an explanation as to why it is infeasible.

995.14 	ARTICLE 56
995.15 	HEALTH CARE

995.16 	Section 1. Minnesota Statutes 2022, section 62V.05, subdivision 12, is amended to read:
995.17 		Subd. 12.Reports on interagency agreements and intra-agency transfers. The 
995.18 	MNsure Board shall provide quarterly reports to the chairs and ranking minority members 
995.19 	of the legislative committees with jurisdiction over health and human services policy and 
995.20 	finance on: legislative reports on interagency agreements and intra-agency transfers according 
995.21 	to section 15.0395.
995.22 	(1) interagency agreements or service-level agreements and any renewals or extensions 
995.23 	of existing interagency or service-level agreements with a state department under section 
995.24 	15.01, state agency under section 15.012, or the Department of Information Technology 
995.25 	Services, with a value of more than $100,000, or related agreements with the same department 
995.26 	or agency with a cumulative value of more than $100,000; and
995.27 	(2) transfers of appropriations of more than $100,000 between accounts within or between 
995.28 	agencies.
995.29 	The report must include the statutory citation authorizing the agreement, transfer or dollar 
995.30 	amount, purpose, and effective date of the agreement, the duration of the agreement, and a 
995.31 	copy of the agreement.

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

996.1 	Sec. 2. Minnesota Statutes 2022, section 62V.08, is amended to read:
996.2 	62V.08 REPORTS.
996.3 	(a) MNsure shall submit a report to the legislature by January 15, 2015 March 31, 2025, 
996.4 	and each January 15 March 31 thereafter, on: (1) the performance of MNsure operations; 
996.5 	(2) meeting MNsure responsibilities; (3) an accounting of MNsure budget activities; (4) 
996.6 	practices and procedures that have been implemented to ensure compliance with data 
996.7 	practices laws, and a description of any violations of data practices laws or procedures; and 
996.8 	(5) the effectiveness of the outreach and implementation activities of MNsure in reducing 
996.9 	the rate of uninsurance.
996.10 	(b) MNsure must publish its administrative and operational costs on a website to educate 
996.11 	consumers on those costs. The information published must include: (1) the amount of 
996.12 	premiums and federal premium subsidies collected; (2) the amount and source of revenue 
996.13 	received under section 62V.05, subdivision 1, paragraph (b), clause (3); (3) the amount and 
996.14 	source of any other fees collected for purposes of supporting operations; and (4) any misuse 
996.15 	of funds as identified in accordance with section 3.975. The website must be updated at 
996.16 	least annually.

996.17 	Sec. 3. Minnesota Statutes 2022, section 62V.11, subdivision 4, is amended to read:
996.18 		Subd. 4.Review of costs. The board shall submit for review the annual budget of MNsure 
996.19 	for the next fiscal year by March 15 31 of each year, beginning March 15, 2014 31, 2025.

996.20 	Sec. 4. Minnesota Statutes 2023 Supplement, section 151.74, subdivision 3, is amended 
996.21 	to read:
996.22 		Subd. 3.Access to urgent-need insulin. (a) MNsure shall develop an application form 
996.23 	to be used by an individual who is in urgent need of insulin. The application must ask the 
996.24 	individual to attest to the eligibility requirements described in subdivision 2. The form shall 
996.25 	be accessible through MNsure's website. MNsure shall also make the form available to 
996.26 	pharmacies and health care providers who prescribe or dispense insulin, hospital emergency 
996.27 	departments, urgent care clinics, and community health clinics. By submitting a completed, 
996.28 	signed, and dated application to a pharmacy, the individual attests that the information 
996.29 	contained in the application is correct.
996.30 	(b) If the individual is in urgent need of insulin, the individual may present a completed, 
996.31 	signed, and dated application form to a pharmacy. The individual must also:
996.32 	(1) have a valid insulin prescription; and
997.1 	(2) present the pharmacist with identification indicating Minnesota residency in the form 
997.2 	of a valid Minnesota identification card, driver's license or permit, individual taxpayer 
997.3 	identification number, or Tribal identification card as defined in section 171.072, paragraph 
997.4 	(b). If the individual in urgent need of insulin is under the age of 18, the individual's parent 
997.5 	or legal guardian must provide the pharmacist with proof of residency.
997.6 	(c) Upon receipt of a completed and signed application, the pharmacist shall dispense 
997.7 	the prescribed insulin in an amount that will provide the individual with a 30-day supply. 
997.8 	The pharmacy must notify the health care practitioner who issued the prescription order no 
997.9 	later than 72 hours after the insulin is dispensed.
997.10 	(d) The pharmacy may submit to the manufacturer of the dispensed insulin product or 
997.11 	to the manufacturer's vendor a claim for payment that is in accordance with the National 
997.12 	Council for Prescription Drug Program standards for electronic claims processing, unless 
997.13 	the manufacturer agrees to send to the pharmacy a replacement supply of the same insulin 
997.14 	as dispensed in the amount dispensed. If the pharmacy submits an electronic claim to the 
997.15 	manufacturer or the manufacturer's vendor, the manufacturer or vendor shall reimburse the 
997.16 	pharmacy in an amount that covers the pharmacy's acquisition cost.
997.17 	(e) The pharmacy may collect an insulin co-payment from the individual to cover the 
997.18 	pharmacy's costs of processing and dispensing in an amount not to exceed $35 for the 30-day 
997.19 	supply of insulin dispensed.
997.20 	(f) The pharmacy shall also provide each eligible individual with the information sheet 
997.21 	described in subdivision 7 and a list of trained navigators provided by the Board of Pharmacy 
997.22 	for the individual to contact if the individual is in need of accessing needs to access ongoing 
997.23 	insulin coverage options, including assistance in:
997.24 	(1) applying for medical assistance or MinnesotaCare;
997.25 	(2) applying for a qualified health plan offered through MNsure, subject to open and 
997.26 	special enrollment periods;
997.27 	(3) accessing information on providers who participate in prescription drug discount 
997.28 	programs, including providers who are authorized to participate in the 340B program under 
997.29 	section 340b of the federal Public Health Services Act, United States Code, title 42, section 
997.30 	256b; and
997.31 	(4) accessing insulin manufacturers' patient assistance programs, co-payment assistance 
997.32 	programs, and other foundation-based programs.
998.1 	(g) The pharmacist shall retain a copy of the application form submitted by the individual 
998.2 	to the pharmacy for reporting and auditing purposes.
998.3 	(h) A manufacturer may submit to the commissioner of administration a request for 
998.4 	reimbursement in an amount not to exceed $35 for each 30-day supply of insulin the 
998.5 	manufacturer provides under paragraph (d). The commissioner of administration shall 
998.6 	determine the manner and format for submitting and processing requests for reimbursement. 
998.7 	After receiving a reimbursement request, the commissioner of administration shall reimburse 
998.8 	the manufacturer in an amount not to exceed $35 for each 30-day supply of insulin the 
998.9 	manufacturer provided under paragraph (d).

998.10 	EFFECTIVE DATE. This section is effective December 1, 2024.

998.11 	Sec. 5. Minnesota Statutes 2022, section 151.74, subdivision 6, is amended to read:
998.12 		Subd. 6.Continuing safety net program; process. (a) The individual shall submit to 
998.13 	a pharmacy the statement of eligibility provided by the manufacturer under subdivision 5, 
998.14 	paragraph (b). Upon receipt of an individual's eligibility status, the pharmacy shall submit 
998.15 	an order containing the name of the insulin product and the daily dosage amount as contained 
998.16 	in a valid prescription to the product's manufacturer.
998.17 	(b) The pharmacy must include with the order to the manufacturer the following 
998.18 	information:
998.19 	(1) the pharmacy's name and shipping address;
998.20 	(2) the pharmacy's office telephone number, fax number, email address, and contact 
998.21 	name; and
998.22 	(3) any specific days or times when deliveries are not accepted by the pharmacy.
998.23 	(c) Upon receipt of an order from a pharmacy and the information described in paragraph 
998.24 	(b), the manufacturer shall send to the pharmacy a 90-day supply of insulin as ordered, 
998.25 	unless a lesser amount is requested in the order, at no charge to the individual or pharmacy.
998.26 	(d) Except as authorized under paragraph (e), the pharmacy shall provide the insulin to 
998.27 	the individual at no charge to the individual. The pharmacy shall not provide insulin received 
998.28 	from the manufacturer to any individual other than the individual associated with the specific 
998.29 	order. The pharmacy shall not seek reimbursement for the insulin received from the 
998.30 	manufacturer or from any third-party payer.
999.1 	(e) The pharmacy may collect a co-payment from the individual to cover the pharmacy's 
999.2 	costs for processing and dispensing in an amount not to exceed $50 for each 90-day supply 
999.3 	if the insulin is sent to the pharmacy.
999.4 	(f) The pharmacy may submit to a manufacturer a reorder for an individual if the 
999.5 	individual's eligibility statement has not expired. Upon receipt of a reorder from a pharmacy, 
999.6 	the manufacturer must send to the pharmacy an additional 90-day supply of the product, 
999.7 	unless a lesser amount is requested, at no charge to the individual or pharmacy if the 
999.8 	individual's eligibility statement has not expired.
999.9 	(g) Notwithstanding paragraph (c), a manufacturer may send the insulin as ordered 
999.10 	directly to the individual if the manufacturer provides a mail order service option.
999.11 	(h) A manufacturer may submit to the commissioner of administration a request for 
999.12 	reimbursement in an amount not to exceed $105 for each 90-day supply of insulin the 
999.13 	manufacturer provides under paragraphs (c) and (f). The commissioner of administration 
999.14 	shall determine the manner and format for submitting and processing requests for 
999.15 	reimbursement. After receiving a reimbursement request, the commissioner of administration 
999.16 	shall reimburse the manufacturer in an amount not to exceed $105 for each 90-day supply 
999.17 	of insulin the manufacturer provided under paragraphs (c) and (f). If the manufacturer 
999.18 	provides less than a 90-day supply of insulin under paragraphs (c) and (f), the manufacturer 
999.19 	may submit a request for reimbursement not to exceed $35 for each 30-day supply of insulin 
999.20 	provided.

999.21 	EFFECTIVE DATE. This section is effective December 1, 2024.

999.22 	Sec. 6. [151.741] INSULIN MANUFACTURER REGISTRATION FEE.
999.23 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
999.24 	the meanings given.
999.25 	(b) "Board" means the Minnesota Board of Pharmacy under section 151.02.
999.26 	(c) "Manufacturer" means a manufacturer licensed under section 151.252 and engaged 
999.27 	in the manufacturing of prescription insulin.
999.28 		Subd. 2.Assessment of registration fee. (a) The board shall assess each manufacturer 
999.29 	an annual registration fee of $100,000, except as provided in paragraph (b). The board shall 
999.30 	notify each manufacturer of this requirement beginning November 1, 2024, and each 
999.31 	November 1 thereafter.
1000.1 	(b) A manufacturer may request an exemption from the annual registration fee. The 
1000.2 	board shall exempt a manufacturer from the annual registration fee if the manufacturer can 
1000.3 	demonstrate to the board, in the form and manner specified by the board, that gross revenue 
1000.4 	from sales of prescription insulin produced by that manufacturer and sold or delivered within 
1000.5 	or into Minnesota was less than five percent of the total gross revenue from sales of 
1000.6 	prescription insulin produced by all manufacturers and sold or delivered within or into 
1000.7 	Minnesota in the previous calendar year.
1000.8 		Subd. 3.Payment of the registration fee; deposit of fee. (a) Each manufacturer must 
1000.9 	pay the registration fee by March 1, 2025, and by each March 1 thereafter. In the event of 
1000.10 	a change in ownership of the manufacturer, the new owner must pay the registration fee 
1000.11 	that the original owner would have been assessed had the original owner retained ownership. 
1000.12 	The board may assess a late fee of ten percent per month or any portion of a month that the 
1000.13 	registration fee is paid after the due date.
1000.14 	(b) The registration fee, including any late fees, must be deposited in the insulin safety 
1000.15 	net program account.
1000.16 		Subd. 4.Insulin safety net program account. The insulin safety net program account 
1000.17 	is established in the special revenue fund in the state treasury. Money in the account is 
1000.18 	appropriated each fiscal year to:
1000.19 	(1) the MNsure board in an amount sufficient to carry out assigned duties under section 
1000.20 	151.74, subdivision 7; and
1000.21 	(2) the Board of Pharmacy in an amount sufficient to cover costs incurred by the board 
1000.22 	in assessing and collecting the registration fee under this section and in administering the 
1000.23 	insulin safety net program under section 151.74.
1000.24 		Subd. 5.Insulin repayment account; annual transfer from health care access fund. (a) 
1000.25 	The insulin repayment account is established in the special revenue fund in the state treasury. 
1000.26 	Money in the account is appropriated each fiscal year to the commissioner of administration 
1000.27 	to reimburse manufacturers for insulin dispensed under the insulin safety net program in 
1000.28 	section 151.74, in accordance with section 151.74, subdivisions 3, paragraph (h), and 6, 
1000.29 	paragraph (h), and to cover costs incurred by the commissioner in providing these 
1000.30 	reimbursement payments.
1000.31 	(b) By June 30, 2025, and each June 30 thereafter, the commissioner of administration 
1000.32 	shall certify to the commissioner of management and budget the total amount expended in 
1000.33 	the prior fiscal year for:
1001.1 	(1) reimbursement to manufacturers for insulin dispensed under the insulin safety net 
1001.2 	program in section 151.74, in accordance with section 151.74, subdivisions 3, paragraph 
1001.3 	(h), and 6, paragraph (h); and
1001.4 	(2) costs incurred by the commissioner of administration in providing the reimbursement 
1001.5 	payments described in clause (1).
1001.6 	(c) The commissioner of management and budget shall transfer from the health care 
1001.7 	access fund to the special revenue fund, beginning July 1, 2025, and each July 1 thereafter, 
1001.8 	an amount equal to the amount to which the commissioner of administration certified 
1001.9 	pursuant to paragraph (b).
1001.10 		Subd. 6.Contingent transfer by commissioner. If subdivisions 2 and 3, or the 
1001.11 	application of subdivisions 2 and 3 to any person or circumstance, are held invalid for any 
1001.12 	reason in a court of competent jurisdiction, the invalidity of subdivisions 2 and 3 does not 
1001.13 	affect other provisions of this act, and the commissioner of management and budget shall 
1001.14 	annually transfer from the health care access fund to the insulin safety net program account 
1001.15 	an amount sufficient to implement subdivision 4.

1001.16 	EFFECTIVE DATE. This section is effective July 1, 2024.

1001.17 	Sec. 7. Laws 2020, chapter 73, section 8, is amended to read:
1001.18 	Sec. 8. APPROPRIATIONS.
 1001.19 	(a) $297,000 is appropriated in fiscal year 2020 from the health care access fund to the 
1001.20 	Board of Directors of MNsure to train navigators to assist individuals and provide 
1001.21 	compensation as required for the insulin safety net program under Minnesota Statutes, 
1001.22 	section 151.74, subdivision 7. Of this appropriation, $108,000 is for implementing the 
1001.23 	training requirements for navigators and $189,000 is for application assistance bonus 
1001.24 	payments. This is a onetime appropriation and is available until December 31, 2024 June 
1001.25 	30, 2027.
1001.26 	(b) $250,000 is appropriated in fiscal year 2020 from the health care access fund to the 
1001.27 	Board of Directors of MNsure for a public awareness campaign for the insulin safety net 
1001.28 	program established under Minnesota Statutes, section 151.74. This is a onetime appropriation 
1001.29 	and is available until December 31, 2024.
1001.30 	(c) $76,000 is appropriated in fiscal year 2021 from the health care access fund to the 
1001.31 	Board of Pharmacy to implement Minnesota Statutes, section 151.74. The base for this 
1002.1 	appropriation is $76,000 in fiscal year 2022; $76,000 in fiscal year 2023; $76,000 in fiscal 
1002.2 	year 2024; $38,000 in fiscal year 2025; and $0 in fiscal year 2026.
1002.3 	(d) $136,000 in fiscal year 2021 is appropriated from the health care access fund to the 
1002.4 	commissioner of health to implement the survey to assess program satisfaction in Minnesota 
1002.5 	Statutes, section 151.74, subdivision 12. The base for this appropriation is $80,000 in fiscal 
1002.6 	year 2022 and $0 in fiscal year 2023. This is a onetime appropriation.

1002.7 	Sec. 8. REPEALER; SUNSET FOR THE LONG-TERM SAFETY NET INSULIN 
1002.8 	PROGRAM.
 1002.9 	Minnesota Statutes 2022, section 151.74, subdivision 16, is repealed.

1002.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

1002.11 	ARTICLE 57
1002.12 	HEALTH INSURANCE

1002.13 	Section 1. Minnesota Statutes 2022, section 43A.24, is amended by adding a subdivision 
1002.14 	to read:
1002.15 		Subd. 4.For-profit health maintenance organizations prohibited.  The commissioner 
1002.16 	must ensure that state paid hospital, medical, and dental benefits are not provided to eligible 
1002.17 	employees by a health maintenance organization which is not a nonprofit corporation 
1002.18 	organized under chapter 317A or a local governmental unit, as defined in section 62D.02.

1002.19 	EFFECTIVE DATE. This section is effective January 1, 2025.

1002.20 	Sec. 2. Minnesota Statutes 2022, section 62A.0411, is amended to read:
1002.21 	62A.0411 MATERNITY CARE.
1002.22 		Subdivision 1.Minimum inpatient care. Every health plan as defined in section 62Q.01, 
1002.23 	subdivision 3, that provides maternity benefits must, consistent with other coinsurance, 
1002.24 	co-payment, deductible, and related contract terms, provide coverage of a minimum of 48 
1002.25 	hours of inpatient care following a vaginal delivery and a minimum of 96 hours of inpatient 
1002.26 	care following a caesarean section for a mother and her newborn. The health plan shall not 
1002.27 	provide any compensation or other nonmedical remuneration to encourage a mother and 
1002.28 	newborn to leave inpatient care before the duration minimums specified in this section.
1002.29 		Subd. 1a.Medical facility transfer. (a) If a health care provider acting within the 
1002.30 	provider's scope of practice recommends that either the mother or newborn be transferred 
1002.31 	to a different medical facility, every health plan must provide the coverage required under 
1003.1 	subdivision 1 for the mother, newborn, and newborn siblings at both medical facilities. The 
1003.2 	coverage required under this subdivision includes but is not limited to expenses related to 
1003.3 	transferring all individuals from one medical facility to a different medical facility.
1003.4 	(b) The coverage required under this subdivision must be provided without cost sharing, 
1003.5 	including but not limited to deductible, co-pay, or coinsurance. The coverage required under 
1003.6 	this paragraph must be provided without any limitation that is not generally applicable to 
1003.7 	other coverages under the plan.
1003.8 	(c) Notwithstanding paragraph (b), a health plan that is a high-deductible health plan in 
1003.9 	conjunction with a health savings account must include cost-sharing for the coverage required 
1003.10 	under this subdivision at the minimum level necessary to preserve the enrollee's ability to 
1003.11 	make tax-exempt contributions and withdrawals from the health savings account as provided 
1003.12 	in section 223 of the Internal Revenue Code of 1986.
1003.13 		Subd. 2.Minimum postdelivery outpatient care. (a) The health plan must also provide 
1003.14 	coverage for postdelivery outpatient care to a mother and her newborn if the duration of 
1003.15 	inpatient care is less than the minimums provided in this section.
1003.16 	(b) Postdelivery care consists of a minimum of one home visit by a registered nurse. 
1003.17 	Services provided by the registered nurse include, but are not limited to, parent education, 
1003.18 	assistance and training in breast and bottle feeding, and conducting any necessary and 
1003.19 	appropriate clinical tests. The home visit must be conducted within four days following the 
1003.20 	discharge of the mother and her child.
1003.21 		Subd. 3.Health plan defined. For purposes of this section, "health plan" has the meaning 
1003.22 	given in section 62Q.01, subdivision 3, and county-based purchasing plans.

1003.23 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to all policies, 
1003.24 	plans, certificates, and contracts offered, issued, or renewed on or after that date.

1003.25 	Sec. 3. Minnesota Statutes 2022, section 62A.15, is amended by adding a subdivision to 
1003.26 	read:
1003.27 		Subd. 3d.Pharmacist. All benefits provided by a policy or contract referred to in 
1003.28 	subdivision 1 relating to expenses incurred for medical treatment or services provided by 
1003.29 	a licensed physician must include services provided by a licensed pharmacist, according to 
1003.30 	the requirements of section 151.01, to the extent a licensed pharmacist's services are within 
1003.31 	the pharmacist's scope of practice.

1003.32 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to policies 
1003.33 	or contracts offered, issued, or renewed on or after that date.

1004.1 	Sec. 4. Minnesota Statutes 2022, section 62A.15, subdivision 4, is amended to read:
1004.2 		Subd. 4.Denial of benefits. (a) No carrier referred to in subdivision 1 may, in the 
1004.3 	payment of claims to employees in this state, deny benefits payable for services covered by 
1004.4 	the policy or contract if the services are lawfully performed by a licensed chiropractor, a 
1004.5 	licensed optometrist, a registered nurse meeting the requirements of subdivision 3a, a licensed 
1004.6 	physician assistant, or a licensed acupuncture practitioner, or a licensed pharmacist.
1004.7 	(b) When carriers referred to in subdivision 1 make claim determinations concerning 
1004.8 	the appropriateness, quality, or utilization of chiropractic health care for Minnesotans, any 
1004.9 	of these determinations that are made by health care professionals must be made by, or 
1004.10 	under the direction of, or subject to the review of licensed doctors of chiropractic.
1004.11 	(c) When a carrier referred to in subdivision 1 makes a denial of payment claim 
1004.12 	determination concerning the appropriateness, quality, or utilization of acupuncture services 
1004.13 	for individuals in this state performed by a licensed acupuncture practitioner, a denial of 
1004.14 	payment claim determination that is made by a health professional must be made by, under 
1004.15 	the direction of, or subject to the review of a licensed acupuncture practitioner.

1004.16 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to policies 
1004.17 	or contracts offered, issued, or renewed on or after that date.

1004.18 	Sec. 5. Minnesota Statutes 2022, section 62A.28, subdivision 2, is amended to read:
1004.19 		Subd. 2.Required coverage. (a) Every policy, plan, certificate, or contract referred to 
1004.20 	in subdivision 1 issued or renewed after August 1, 1987, must provide coverage for scalp 
1004.21 	hair prostheses, including all equipment and accessories necessary for regular use of scalp 
1004.22 	hair prostheses, worn for hair loss suffered as a result of a health condition, including but 
1004.23 	not limited to alopecia areata or the treatment for cancer, unless there is a clinical basis for 
1004.24 	limitation.
1004.25 	(b) The coverage required by this section is subject to the co-payment, coinsurance, 
1004.26 	deductible, and other enrollee cost-sharing requirements that apply to similar types of items 
1004.27 	under the policy, plan, certificate, or contract and may be limited to one prosthesis per 
1004.28 	benefit year.
1004.29 	(c) The coverage required by this section for scalp hair prostheses is limited to $1,000 
1004.30 	per benefit year.
1004.31 	(d) A scalp hair prosthesis must be prescribed by a doctor to be covered under this 
1004.32 	section.

1005.1 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to all policies, 
1005.2 	plans, certificates, and contracts offered, issued, or renewed on or after that date.

1005.3 	Sec. 6. [62A.3098] RAPID WHOLE GENOME SEQUENCING; COVERAGE.
1005.4 		Subdivision 1.Definition. For purposes of this section, "rapid whole genome sequencing" 
1005.5 	or "rWGS" means an investigation of the entire human genome, including coding and 
1005.6 	noncoding regions and mitochondrial deoxyribonucleic acid, to identify disease-causing 
1005.7 	genetic changes that returns the final results in 14 days. Rapid whole genome sequencing 
1005.8 	includes patient-only whole genome sequencing and duo and trio whole genome sequencing 
1005.9 	of the patient and the patient's biological parent or parents.
1005.10 		Subd. 2.Required coverage. A health plan that provides coverage to Minnesota residents 
1005.11 	must cover rWGS testing if the enrollee:
1005.12 	(1) is 21 years of age or younger;
1005.13 	(2) has a complex or acute illness of unknown etiology that is not confirmed to have 
1005.14 	been caused by an environmental exposure, toxic ingestion, an infection with a normal 
1005.15 	response to therapy, or trauma; and
1005.16 	(3) is receiving inpatient hospital services in an intensive care unit or a neonatal or high 
1005.17 	acuity pediatric care unit.
1005.18 		Subd. 3.Coverage criteria. Coverage may be based on the following medical necessity 
1005.19 	criteria:
1005.20 	(1) the enrollee has symptoms that suggest a broad differential diagnosis that would 
1005.21 	require an evaluation by multiple genetic tests if rWGS testing is not performed;
1005.22 	(2) timely identification of a molecular diagnosis is necessary in order to guide clinical 
1005.23 	decision making, and the rWGS testing may aid in guiding the treatment or management 
1005.24 	of the enrollee's condition; and
1005.25 	(3) the enrollee's complex or acute illness of unknown etiology includes at least one of 
1005.26 	the following conditions:
1005.27 	(i) congenital anomalies involving at least two organ systems, or complex or multiple 
1005.28 	congenital anomalies in one organ system;
1005.29 	(ii) specific organ malformations that are highly suggestive of a genetic etiology;
1005.30 	(iii) abnormal laboratory tests or abnormal chemistry profiles suggesting the presence 
1005.31 	of a genetic disease, complex metabolic disorder, or inborn error of metabolism;
1006.1 	(iv) refractory or severe hypoglycemia or hyperglycemia;
1006.2 	(v) abnormal response to therapy related to an underlying medical condition affecting 
1006.3 	vital organs or bodily systems;
1006.4 	(vi) severe muscle weakness, rigidity, or spasticity;
1006.5 	(vii) refractory seizures;
1006.6 	(viii) a high-risk stratification on evaluation for a brief resolved unexplained event with 
1006.7 	any of the following features:
1006.8 	(A) a recurrent event without respiratory infection;
1006.9 	(B) a recurrent seizure-like event; or
1006.10 	(C) a recurrent cardiopulmonary resuscitation;
1006.11 	(ix) abnormal cardiac diagnostic testing results that are suggestive of possible 
1006.12 	channelopathies, arrhythmias, cardiomyopathies, myocarditis, or structural heart disease;
1006.13 	(x) abnormal diagnostic imaging studies that are suggestive of underlying genetic 
1006.14 	condition;
1006.15 	(xi) abnormal physiologic function studies that are suggestive of an underlying genetic 
1006.16 	etiology; or
1006.17 	(xii) family genetic history related to the patient's condition.
1006.18 		Subd. 4.Cost sharing. Coverage provided in this section is subject to the enrollee's 
1006.19 	health plan cost-sharing requirements, including any deductibles, co-payments, or coinsurance 
1006.20 	requirements that apply to diagnostic testing services.
1006.21 		Subd. 5.Payment for services provided. If the enrollee's health plan uses a capitated 
1006.22 	or bundled payment arrangement to reimburse a provider for services provided in an inpatient 
1006.23 	setting, reimbursement for services covered under this section must be paid separately and 
1006.24 	in addition to any reimbursement otherwise payable to the provider under the capitated or 
1006.25 	bundled payment arrangement, unless the health carrier and the provider have negotiated 
1006.26 	an increased capitated or bundled payment rate that includes the services covered under this 
1006.27 	section.
1006.28 		Subd. 6.Genetic data. Genetic data generated as a result of performing rWGS and 
1006.29 	covered under this section: (1) must be used for the primary purpose of assisting the ordering 
1006.30 	provider and treating care team to diagnose and treat the patient; (2) is protected health 
1006.31 	information as set forth under the Health Insurance Portability and Accountability Act 
1007.1 	(HIPAA), the Health Information Technology for Economic and Clinical Health Act, and 
1007.2 	any promulgated regulations, including but not limited to Code of Federal Regulations, title 
1007.3 	45, parts 160 and 164, subparts A and E; and (3) is a protected health record under sections 
1007.4 	144.291 to 144.298.
1007.5 		Subd. 7.Reimbursement. (a) The commissioner of commerce must reimburse health 
1007.6 	carriers for coverage under this section. Reimbursement is available only for coverage that 
1007.7 	would not have been provided by the health plan without the requirements of this section. 
1007.8 	Treatments and services covered by the health plan as of January 1, 2024, are ineligible for 
1007.9 	payments under this subdivision by the commissioner of commerce.
1007.10 	(b) Health carriers must report to the commissioner of commerce quantified costs 
1007.11 	attributable to the additional benefit under this section in a format developed by the 
1007.12 	commissioner. A health plan's coverage as of January 1, 2024, must be used by the health 
1007.13 	carrier as the basis for determining whether coverage would not have been provided by the 
1007.14 	health plan for purposes of this subdivision.
1007.15 	(c) The commissioner of commerce must evaluate submissions and make payments to 
1007.16 	health carriers as provided in Code of Federal Regulations, title 45, section 155.170.
1007.17 		Subd. 8.Appropriation. Each fiscal year, an amount necessary to make payments to 
1007.18 	health carriers to defray the cost of providing coverage under this section is appropriated 
1007.19 	to the commissioner of commerce.

1007.20 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to a health 
1007.21 	plan offered, issued, or sold on or after that date.

1007.22 	Sec. 7. [62A.59] COVERAGE OF SERVICE; PRIOR AUTHORIZATION.
1007.23 		Subdivision 1.Service for which prior authorization not required. A health carrier 
1007.24 	must not retrospectively deny or limit coverage of a health care service for which prior 
1007.25 	authorization was not required by the health carrier, unless there is evidence that the health 
1007.26 	care service was provided based on fraud or misinformation.
1007.27 		Subd. 2.Service for which prior authorization required but not obtained. A health 
1007.28 	carrier must not deny or limit coverage of a health care service which the enrollee has already 
1007.29 	received solely on the basis of lack of prior authorization if the service would otherwise 
1007.30 	have been covered had the prior authorization been obtained.

1007.31 	EFFECTIVE DATE. This section is effective January 1, 2026, and applies to health 
1007.32 	plans offered, sold, issued, or renewed on or after that date.

1008.1 	Sec. 8. [62C.045] APPLICATION OF OTHER LAW.
1008.2 	Sections 145D.30 to 145D.37 apply to service plan corporations operating under this 
1008.3 	chapter.

1008.4 	EFFECTIVE DATE. This section is effective July 1, 2025.

1008.5 	Sec. 9. Minnesota Statutes 2022, section 62D.02, subdivision 7, is amended to read:
1008.6 		Subd. 7.Comprehensive health maintenance services. "Comprehensive health 
1008.7 	maintenance services" means a set of comprehensive health services which the enrollees 
1008.8 	might reasonably require to be maintained in good health including as a minimum, but not 
1008.9 	limited to, emergency care, emergency ground ambulance transportation services, inpatient 
1008.10 	hospital and physician care, outpatient health services and preventive health services. 
1008.11 	Elective, induced abortion, except as medically necessary to prevent the death of the mother, 
1008.12 	whether performed in a hospital, other abortion facility or the office of a physician, shall 
1008.13 	not be mandatory for any health maintenance organization.

1008.14 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to health 
1008.15 	plans offered, sold, issued, or renewed on or after that date.

1008.16 	Sec. 10. Minnesota Statutes 2022, section 62D.04, subdivision 5, is amended to read:
1008.17 		Subd. 5.Participation; government programs. Health maintenance organizations that 
1008.18 	are a nonprofit corporation organized under chapter 317A or a local governmental unit shall, 
1008.19 	as a condition of receiving and retaining a certificate of authority, participate in the medical 
1008.20 	assistance and MinnesotaCare programs. A health maintenance organization governed by 
1008.21 	this subdivision is required to submit proposals in good faith that meet the requirements of 
1008.22 	the request for proposal provided that the requirements can be reasonably met by a health 
1008.23 	maintenance organization to serve individuals eligible for the above programs in a geographic 
1008.24 	region of the state if, at the time of publication of a request for proposal, the percentage of 
1008.25 	recipients in the public programs in the region who are enrolled in the health maintenance 
1008.26 	organization is less than the health maintenance organization's percentage of the total number 
1008.27 	of individuals enrolled in health maintenance organizations in the same region. Geographic 
1008.28 	regions shall be defined by the commissioner of human services in the request for proposals.

1008.29 	EFFECTIVE DATE. This section is effective January 1, 2025.

1009.1 	Sec. 11. [62D.1071] COVERAGE OF LICENSED PHARMACIST SERVICES.
1009.2 		Subdivision 1.Pharmacist. All benefits provided by a health maintenance contract 
1009.3 	relating to expenses incurred for medical treatment or services provided by a licensed 
1009.4 	physician must include services provided by a licensed pharmacist to the extent a licensed 
1009.5 	pharmacist's services are within the pharmacist's scope of practice.
1009.6 		Subd. 2.Denial of benefits. When paying claims for enrollees in Minnesota, a health 
1009.7 	maintenance organization must not deny payment for medical services covered by an 
1009.8 	enrollee's health maintenance contract if the services are lawfully performed by a licensed 
1009.9 	pharmacist.
1009.10 		Subd. 3.Exemptions. (a) This section does not apply to or affect the coverage or 
1009.11 	reimbursement for medication therapy management services under section 62Q.676 or 
1009.12 	256B.0625, subdivisions 5, 13h, and 28a.
1009.13 	(b) This section does not apply to managed care organizations or county-based purchasing 
1009.14 	plans when the plan provides coverage to public health care program enrollees under chapter 
1009.15 	256B or 256L.

1009.16 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to health 
1009.17 	plans offered, issued, or renewed on or after that date.

1009.18 	Sec. 12. Minnesota Statutes 2022, section 62D.12, subdivision 19, is amended to read:
1009.19 		Subd. 19.Coverage of service. A health maintenance organization may not deny or 
1009.20 	limit coverage of a service which the enrollee has already received solely on the basis of 
1009.21 	lack of prior authorization or second opinion, to the extent that the service would otherwise 
1009.22 	have been covered under the member's contract by the health maintenance organization had 
1009.23 	prior authorization or second opinion been obtained. This subdivision expires December 
1009.24 	31, 2025, for health plans offered, sold, issued, or renewed on or after that date.

1009.25 	Sec. 13. Minnesota Statutes 2022, section 62D.20, subdivision 1, is amended to read:
1009.26 		Subdivision 1.Rulemaking. The commissioner of health may, pursuant to chapter 14, 
1009.27 	promulgate such reasonable rules as are necessary or proper to carry out the provisions of 
1009.28 	sections 62D.01 to 62D.30. Included among such rules shall be those which provide minimum 
1009.29 	requirements for the provision of comprehensive health maintenance services, as defined 
1009.30 	in section 62D.02, subdivision 7, and reasonable exclusions therefrom. Nothing in such 
1009.31 	rules shall force or require a health maintenance organization to provide elective, induced 
1009.32 	abortions, except as medically necessary to prevent the death of the mother, whether 
1010.1 	performed in a hospital, other abortion facility, or the office of a physician; the rules shall 
1010.2 	provide every health maintenance organization the option of excluding or including elective, 
1010.3 	induced abortions, except as medically necessary to prevent the death of the mother, as part 
1010.4 	of its comprehensive health maintenance services.

1010.5 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to health 
1010.6 	plans offered, sold, issued, or renewed on or after that date.

1010.7 	Sec. 14. Minnesota Statutes 2022, section 62D.22, subdivision 5, is amended to read:
1010.8 		Subd. 5.Other state law. Except as otherwise provided in sections 62A.01 to 62A.42
1010.9 	and 62D.01 to 62D.30, and except as they eliminate elective, induced abortions, wherever 
1010.10 	performed, from health or maternity benefits, provisions of the insurance laws and provisions 
1010.11 	of nonprofit health service plan corporation laws shall not be applicable to any health 
1010.12 	maintenance organization granted a certificate of authority under sections 62D.01 to 62D.30.

1010.13 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to health 
1010.14 	plans offered, sold, issued, or renewed on or after that date.

1010.15 	Sec. 15. Minnesota Statutes 2022, section 62D.22, is amended by adding a subdivision to 
1010.16 	read:
1010.17 		Subd. 5a.Application of other law. Effective July 1, 2025, sections 145D.30 to 145D.37 
1010.18 	apply to nonprofit health maintenance organizations operating under this chapter.

1010.19 	Sec. 16. [62D.221] OVERSIGHT OF TRANSACTIONS.
1010.20 		Subdivision 1.Insurance provisions applicable to health maintenance 
1010.21 	organizations. Health maintenance organizations are subject to sections 60A.135, 60A.136, 
1010.22 	60A.137, 60A.16, 60A.161, 60D.17, 60D.18, and 60D.20 and must comply with the 
1010.23 	provisions of these sections applicable to insurers. In applying these sections to health 
1010.24 	maintenance organizations, "commissioner" means the commissioner of health. Health 
1010.25 	maintenance organizations are subject to Minnesota Rules, chapter 2720, as applicable to 
1010.26 	sections 60D.17, 60D.18, and 60D.20, and must comply with the provisions of chapter 2720 
1010.27 	applicable to insurers, unless the commissioner of health adopts rules to implement this 
1010.28 	subdivision.
1010.29 		Subd. 2.Statement. In addition to the conditions in section 60D.17, subdivision 1, 
1010.30 	subjecting a health maintenance organization to filing requirements, no person other than 
1010.31 	the issuer shall acquire all or substantially all of the assets of a domestic nonprofit health 
1010.32 	maintenance organization through any means unless at the time the offer, request, or 
1011.1 	invitation is made or the agreement is entered into the person has filed with the commissioner 
1011.2 	and has sent to the health maintenance organization a statement containing the information 
1011.3 	required in section 60D.17 and the offer, request, invitation, agreement, or acquisition has 
1011.4 	been approved by the commissioner of health in the manner prescribed in section 60D.17.

1011.5 	Sec. 17. Minnesota Statutes 2022, section 62M.02, subdivision 1a, is amended to read:
1011.6 		Subd. 1a.Adverse determination. "Adverse determination" means a decision by a 
1011.7 	utilization review organization relating to an admission, extension of stay, or health care 
1011.8 	service that is partially or wholly adverse to the enrollee, including:
1011.9 	(1) a decision to deny an admission, extension of stay, or health care service on the basis 
1011.10 	that it is not medically necessary; or
1011.11 	(2) an authorization for a health care service that is less intensive than the health care 
1011.12 	service specified in the original request for authorization.

1011.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

1011.14 	Sec. 18. Minnesota Statutes 2022, section 62M.02, subdivision 5, is amended to read:
1011.15 		Subd. 5.Authorization. "Authorization" means a determination by a utilization review 
1011.16 	organization that an admission, extension of stay, or other health care service has been 
1011.17 	reviewed and that, based on the information provided, it satisfies the utilization review 
1011.18 	requirements of the applicable health benefit plan and the health plan company or 
1011.19 	commissioner will then pay for the covered benefit, provided the preexisting limitation 
1011.20 	provisions, the general exclusion provisions, and any deductible, co-payment, coinsurance, 
1011.21 	or other policy requirements have been met.

1011.22 	Sec. 19. Minnesota Statutes 2022, section 62M.02, is amended by adding a subdivision 
1011.23 	to read:
1011.24 		Subd. 8a.Commissioner. "Commissioner" means, effective January 1, 2026, for the 
1011.25 	sections specified in section 62M.01, subdivision 3, paragraph (c), the commissioner of 
1011.26 	human services, unless otherwise specified.

1011.27 	Sec. 20. Minnesota Statutes 2022, section 62M.02, subdivision 11, is amended to read:
1011.28 		Subd. 11.Enrollee. "Enrollee" means:
1011.29 	(1) an individual covered by a health benefit plan and includes an insured policyholder, 
1011.30 	subscriber, contract holder, member, covered person, or certificate holder; or
1012.1 	(2) effective January 1, 2026, for the sections specified in section 62M.01, subdivision 
1012.2 	3, paragraph (c), a recipient receiving coverage through fee-for-service under chapters 256B 
1012.3 	and 256L.

1012.4 	Sec. 21. Minnesota Statutes 2022, section 62M.02, subdivision 12, is amended to read:
1012.5 		Subd. 12.Health benefit plan. (a) "Health benefit plan" means:
1012.6 	(1) a policy, contract, or certificate issued by a health plan company for the coverage of 
1012.7 	medical, dental, or hospital benefits; or
1012.8 	(2) effective January 1, 2026, for the sections specified in section 62M.01, subdivision 
1012.9 	3, paragraph (c), coverage of medical, dental, or hospital benefits through fee-for-service 
1012.10 	under chapters 256B and 256L, as specified by the commissioner on the agency's public 
1012.11 	website or through other forms of recipient and provider guidance.
1012.12 	(b) A health benefit plan does not include coverage that is:
1012.13 	(1) limited to disability or income protection coverage;
1012.14 	(2) automobile medical payment coverage;
1012.15 	(3) supplemental to liability insurance;
1012.16 	(4) designed solely to provide payments on a per diem, fixed indemnity, or nonexpense 
1012.17 	incurred basis;
1012.18 	(5) credit accident and health insurance issued under chapter 62B;
1012.19 	(6) blanket accident and sickness insurance as defined in section 62A.11;
1012.20 	(7) accident only coverage issued by a licensed and tested insurance agent; or
1012.21 	(8) workers' compensation.

1012.22 	Sec. 22. Minnesota Statutes 2022, section 62M.02, subdivision 21, is amended to read:
1012.23 		Subd. 21.Utilization review organization. "Utilization review organization" means an 
1012.24 	entity including but not limited to an insurance company licensed under chapter 60A to 
1012.25 	offer, sell, or issue a policy of accident and sickness insurance as defined in section 62A.01; 
1012.26 	a prepaid limited health service organization issued a certificate of authority and operating 
1012.27 	under sections 62A.451 to 62A.4528; a health service plan licensed under chapter 62C; a 
1012.28 	health maintenance organization licensed under chapter 62D; a community integrated service 
1012.29 	network licensed under chapter 62N; an accountable provider network operating under 
1012.30 	chapter 62T; a fraternal benefit society operating under chapter 64B; a joint self-insurance 
1013.1 	employee health plan operating under chapter 62H; a multiple employer welfare arrangement, 
1013.2 	as defined in section 3 of the Employee Retirement Income Security Act of 1974 (ERISA), 
1013.3 	United States Code, title 29, section 1103, as amended; a third-party administrator licensed 
1013.4 	under section 60A.23, subdivision 8, which conducts utilization review and authorizes or 
1013.5 	makes adverse determinations regarding an admission, extension of stay, or other health 
1013.6 	care services for a Minnesota resident; effective January 1, 2026, for the sections specified 
1013.7 	in section 62M.01, subdivision 3, paragraph (c), the commissioner of human services for 
1013.8 	purposes of delivering services through fee-for-service under chapters 256B and 256L; any 
1013.9 	other entity that provides, offers, or administers hospital, outpatient, medical, prescription 
1013.10 	drug, or other health benefits to individuals treated by a health professional under a policy, 
1013.11 	plan, or contract; or any entity performing utilization review that is affiliated with, under 
1013.12 	contract with, or conducting utilization review on behalf of, a business entity in this state. 
1013.13 	Utilization review organization does not include a clinic or health care system acting pursuant 
1013.14 	to a written delegation agreement with an otherwise regulated utilization review organization 
1013.15 	that contracts with the clinic or health care system. The regulated utilization review 
1013.16 	organization is accountable for the delegated utilization review activities of the clinic or 
1013.17 	health care system.

1013.18 	Sec. 23. Minnesota Statutes 2022, section 62M.04, subdivision 1, is amended to read:
1013.19 		Subdivision 1.Responsibility for obtaining authorization. A health benefit plan that 
1013.20 	includes utilization review requirements must specify the process for notifying the utilization 
1013.21 	review organization in a timely manner and obtaining authorization for health care services. 
1013.22 	Each health plan company must provide a clear and concise description of this process to 
1013.23 	an enrollee as part of the policy, subscriber contract, or certificate of coverage. Effective 
1013.24 	January 1, 2026, the commissioner must provide a clear and concise description of this 
1013.25 	process to fee-for-service recipients receiving services under chapters 256B and 256L, 
1013.26 	through the agency's public website or through other forms of recipient guidance. In addition 
1013.27 	to the enrollee, the utilization review organization must allow any provider or provider's 
1013.28 	designee, or responsible patient representative, including a family member, to fulfill the 
1013.29 	obligations under the health benefit plan.
1013.30 	A claims administrator that contracts directly with providers for the provision of health 
1013.31 	care services to enrollees may, through contract, require the provider to notify the review 
1013.32 	organization in a timely manner and obtain authorization for health care services.

1014.1 	Sec. 24. Minnesota Statutes 2022, section 62M.05, subdivision 3a, is amended to read:
1014.2 		Subd. 3a.Standard review determination. (a) Notwithstanding subdivision 3b, a 
1014.3 	standard review determination on all requests for utilization review must be communicated 
1014.4 	to the provider and enrollee in accordance with this subdivision within five business days 
1014.5 	after receiving the request if the request is received electronically, or within six business 
1014.6 	days if received through nonelectronic means, provided that all information reasonably 
1014.7 	necessary to make a determination on the request has been made available to the utilization 
1014.8 	review organization. Effective January 1, 2022, A standard review determination on all 
1014.9 	requests for utilization review must be communicated to the provider and enrollee in 
1014.10 	accordance with this subdivision within five business days after receiving the request, 
1014.11 	regardless of how the request was received, provided that all information reasonably 
1014.12 	necessary to make a determination on the request has been made available to the utilization 
1014.13 	review organization.
1014.14 	(b) When a determination is made to authorize, notification must be provided promptly 
1014.15 	by telephone to the provider. The utilization review organization shall send written 
1014.16 	notification to the provider or shall maintain an audit trail of the determination and telephone 
1014.17 	notification. For purposes of this subdivision, "audit trail" includes documentation of the 
1014.18 	telephone notification, including the date; the name of the person spoken to; the enrollee; 
1014.19 	the service, procedure, or admission authorized; and the date of the service, procedure, or 
1014.20 	admission. If the utilization review organization indicates authorization by use of a number, 
1014.21 	the number must be called the "authorization number." For purposes of this subdivision, 
1014.22 	notification may also be made by facsimile to a verified number or by electronic mail to a 
1014.23 	secure electronic mailbox. These electronic forms of notification satisfy the "audit trail" 
1014.24 	requirement of this paragraph.
1014.25 	(c) When an adverse determination is made, notification must be provided within the 
1014.26 	time periods specified in paragraph (a) by telephone, by facsimile to a verified number, or 
1014.27 	by electronic mail to a secure electronic mailbox to the attending health care professional 
1014.28 	and hospital or physician office as applicable. Written notification must also be sent to the 
1014.29 	hospital or physician office as applicable and attending health care professional if notification 
1014.30 	occurred by telephone. For purposes of this subdivision, notification may be made by 
1014.31 	facsimile to a verified number or by electronic mail to a secure electronic mailbox. Written 
1014.32 	notification must be sent to the enrollee and may be sent by United States mail, facsimile 
1014.33 	to a verified number, or by electronic mail to a secure mailbox. The written notification 
1014.34 	must include all reasons relied on by the utilization review organization for the determination 
1014.35 	and the process for initiating an appeal of the determination. Upon request, the utilization 
1015.1 	review organization shall provide the provider or enrollee with the criteria used to determine 
1015.2 	the necessity, appropriateness, and efficacy of the health care service and identify the 
1015.3 	database, professional treatment parameter, or other basis for the criteria. Reasons for an 
1015.4 	adverse determination may include, among other things, the lack of adequate information 
1015.5 	to authorize after a reasonable attempt has been made to contact the provider or enrollee.
1015.6 	(d) When an adverse determination is made, the written notification must inform the 
1015.7 	enrollee and the attending health care professional of the right to submit an appeal to the 
1015.8 	internal appeal process described in section 62M.06 and the procedure for initiating the 
1015.9 	internal appeal. The written notice shall be provided in a culturally and linguistically 
1015.10 	appropriate manner consistent with the provisions of the Affordable Care Act as defined 
1015.11 	under section 62A.011, subdivision 1a.

1015.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

1015.13 	Sec. 25. Minnesota Statutes 2022, section 62M.07, subdivision 2, is amended to read:
1015.14 		Subd. 2.Prior authorization of emergency certain services prohibited.  No utilization 
1015.15 	review organization, health plan company, or claims administrator may conduct or require 
1015.16 	prior authorization of:
1015.17 	(1) emergency confinement or an emergency service. The enrollee or the enrollee's 
1015.18 	authorized representative may be required to notify the health plan company, claims 
1015.19 	administrator, or utilization review organization as soon as reasonably possible after the 
1015.20 	beginning of the emergency confinement or emergency service.;
1015.21 	(2) outpatient mental health treatment or outpatient substance use disorder treatment, 
1015.22 	except for treatment which is a medication. Prior authorizations required for medications 
1015.23 	used for outpatient mental health treatment or outpatient substance use disorder treatment 
1015.24 	must be processed according to section 62M.05, subdivision 3b, for initial determinations, 
1015.25 	and according to section 62M.06, subdivision 2, for appeals;
1015.26 	(3) antineoplastic cancer treatment that is consistent with guidelines of the National 
1015.27 	Comprehensive Cancer Network, except for treatment which is a medication. Prior 
1015.28 	authorizations required for medications used for antineoplastic cancer treatment must be 
1015.29 	processed according to section 62M.05, subdivision 3b, for initial determinations, and 
1015.30 	according to section 62M.06, subdivision 2, for appeals;
1015.31 	(4) services that currently have a rating of A or B from the United States Preventive 
1015.32 	Services Task Force, immunizations recommended by the Advisory Committee on 
1015.33 	Immunization Practices of the Centers for Disease Control and Prevention, or preventive 
1016.1 	services and screenings provided to women as described in Code of Federal Regulations, 
1016.2 	title 45, section 147.130;
1016.3 	(5) pediatric hospice services provided by a hospice provider licensed under sections 
1016.4 	144A.75 to 144A.755; and
1016.5 	(6) treatment delivered through a neonatal abstinence program operated by pediatric 
1016.6 	pain or palliative care subspecialists.
1016.7 	Clauses (2) to (6) are effective January 1, 2026, and apply to health benefit plans offered, 
1016.8 	sold, issued, or renewed on or after that date.

1016.9 	Sec. 26. Minnesota Statutes 2022, section 62M.07, subdivision 4, is amended to read:
1016.10 		Subd. 4.Submission of prior authorization requests. (a) If prior authorization for a 
1016.11 	health care service is required, the utilization review organization, health plan company, or 
1016.12 	claim administrator must allow providers to submit requests for prior authorization of the 
1016.13 	health care services without unreasonable delay by telephone, facsimile, or voice mail or 
1016.14 	through an electronic mechanism 24 hours a day, seven days a week. This subdivision does 
1016.15 	not apply to dental service covered under MinnesotaCare or medical assistance.
1016.16 	(b) Effective January 1, 2027, for health benefit plans offered, sold, issued, or renewed 
1016.17 	on or after that date, utilization review organizations, health plan companies, and claims 
1016.18 	administrators must have and maintain a prior authorization application programming 
1016.19 	interface (API) that automates the prior authorization process for health care services, 
1016.20 	excluding prescription drugs and medications. The API must allow providers to determine 
1016.21 	whether a prior authorization is required for health care services, identify prior authorization 
1016.22 	information and documentation requirements, and facilitate the exchange of prior 
1016.23 	authorization requests and determinations from provider electronic health records or practice 
1016.24 	management systems. The API must use the Health Level Seven (HL7) Fast Healthcare 
1016.25 	Interoperability Resources (FHIR) standard in accordance with Code of Federal Regulations, 
1016.26 	title 45, section 170.215(a)(1), and the most recent standards and guidance adopted by the 
1016.27 	United States Department of Health and Human Services to implement that section. Prior 
1016.28 	authorization submission requests for prescription drugs and medications must comply with 
1016.29 	the requirements of section 62J.497.

1017.1 	Sec. 27. Minnesota Statutes 2022, section 62M.07, is amended by adding a subdivision 
1017.2 	to read:
1017.3 		Subd. 5.Treatment of a chronic condition. This subdivision is effective January 1, 
1017.4 	2026, and applies to health benefit plans offered, sold, issued, or renewed on or after that 
1017.5 	date. An authorization for treatment of a chronic health condition does not expire unless 
1017.6 	the standard of treatment for that health condition changes. A chronic health condition is a 
1017.7 	condition that is expected to last one year or more and:
1017.8 	(1) requires ongoing medical attention to effectively manage the condition or prevent 
1017.9 	an adverse health event; or
1017.10 	(2) limits one or more activities of daily living.

1017.11 	Sec. 28. Minnesota Statutes 2022, section 62M.10, subdivision 7, is amended to read:
1017.12 		Subd. 7.Availability of criteria. (a) For utilization review determinations other than 
1017.13 	prior authorization, a utilization review organization shall, upon request, provide to an 
1017.14 	enrollee, a provider, and the commissioner of commerce the criteria used to determine the 
1017.15 	medical necessity, appropriateness, and efficacy of a procedure or service and identify the 
1017.16 	database, professional treatment guideline, or other basis for the criteria.
1017.17 	(b) For prior authorization determinations, a utilization review organization must submit 
1017.18 	the organization's current prior authorization requirements and restrictions, including written, 
1017.19 	evidence-based, clinical criteria used to make an authorization or adverse determination, to 
1017.20 	all health plan companies for which the organization performs utilization review. A health 
1017.21 	plan company must post on its public website the prior authorization requirements and 
1017.22 	restrictions of any utilization review organization that performs utilization review for the 
1017.23 	health plan company. These prior authorization requirements and restrictions must be detailed 
1017.24 	and written in language that is easily understandable to providers. This paragraph does not 
1017.25 	apply to the commissioner of human services when delivering services through fee-for-service 
1017.26 	under chapters 256B and 256L.
1017.27 	(c) Effective January 1, 2026, the commissioner of human services must post on the 
1017.28 	department's public website the prior authorization requirements and restrictions, including 
1017.29 	written, evidence-based, clinical criteria used to make an authorization or adverse 
1017.30 	determination, that apply to prior authorization determinations for fee-for-service under 
1017.31 	chapters 256B and 256L. These prior authorization requirements and restrictions must be 
1017.32 	detailed and written in language that is easily understandable to providers.

1018.1 	Sec. 29. Minnesota Statutes 2022, section 62M.10, subdivision 8, is amended to read:
1018.2 		Subd. 8.Notice; new prior authorization requirements or restrictions; change to 
1018.3 	existing requirement or restriction. (a) Before a utilization review organization may 
1018.4 	implement a new prior authorization requirement or restriction or amend an existing prior 
1018.5 	authorization requirement or restriction, the utilization review organization must submit the 
1018.6 	new or amended requirement or restriction to all health plan companies for which the 
1018.7 	organization performs utilization review. A health plan company must post on its website 
1018.8 	the new or amended requirement or restriction. This paragraph does not apply to the 
1018.9 	commissioner of human services when delivering services through fee-for-service under 
1018.10 	chapters 256B and 256L.
1018.11 	(b) At least 45 days before a new prior authorization requirement or restriction or an 
1018.12 	amended existing prior authorization requirement or restriction is implemented, the utilization 
1018.13 	review organization, health plan company, or claims administrator must provide written or 
1018.14 	electronic notice of the new or amended requirement or restriction to all Minnesota-based, 
1018.15 	in-network attending health care professionals who are subject to the prior authorization 
1018.16 	requirements and restrictions. This paragraph does not apply to the commissioner of human 
1018.17 	services when delivering services through fee-for-service under chapters 256B and 256L.
1018.18 	(c) Effective January 1, 2026, before the commissioner of human services may implement 
1018.19 	a new prior authorization requirement or restriction or amend an existing prior authorization 
1018.20 	requirement or restriction, the commissioner, at least 45 days before the new or amended 
1018.21 	requirement or restriction takes effect, must provide written or electronic notice of the new 
1018.22 	or amended requirement or restriction, to all health care professionals participating as 
1018.23 	fee-for-service providers under chapters 256B and 256L who are subject to the prior 
1018.24 	authorization requirements and restrictions.

1018.25 	Sec. 30. Minnesota Statutes 2022, section 62M.17, subdivision 2, is amended to read:
1018.26 		Subd. 2.Effect of change in prior authorization clinical criteria. (a) If, during a plan 
1018.27 	year, a utilization review organization changes coverage terms for a health care service or 
1018.28 	the clinical criteria used to conduct prior authorizations for a health care service, the change 
1018.29 	in coverage terms or change in clinical criteria shall not apply until the next plan year for 
1018.30 	any enrollee who received prior authorization for a health care service using the coverage 
1018.31 	terms or clinical criteria in effect before the effective date of the change.
1018.32 	(b) Paragraph (a) does not apply if a utilization review organization changes coverage 
1018.33 	terms for a drug or device that has been deemed unsafe by the United States Food and Drug 
1018.34 	Administration (FDA); that has been withdrawn by either the FDA or the product 
1019.1 	manufacturer; or when an independent source of research, clinical guidelines, or 
1019.2 	evidence-based standards has issued drug- or device-specific warnings or recommended 
1019.3 	changes in drug or device usage.
1019.4 	(c) Paragraph (a) does not apply if a utilization review organization changes coverage 
1019.5 	terms for a service or the clinical criteria used to conduct prior authorizations for a service 
1019.6 	when an independent source of research, clinical guidelines, or evidence-based standards 
1019.7 	has recommended changes in usage of the service for reasons related to patient harm. This 
1019.8 	paragraph expires December 31, 2025, for health benefit plans offered, sold, issued, or 
1019.9 	renewed on or after that date.
1019.10 	(d) Effective January 1, 2026, and applicable to health benefit plans offered, sold, issued, 
1019.11 	or renewed on or after that date, paragraph (a) does not apply if a utilization review 
1019.12 	organization changes coverage terms for a service or the clinical criteria used to conduct 
1019.13 	prior authorizations for a service when an independent source of research, clinical guidelines, 
1019.14 	or evidence-based standards has recommended changes in usage of the service for reasons 
1019.15 	related to previously unknown and imminent patient harm.
1019.16 	(d) (e) Paragraph (a) does not apply if a utilization review organization removes a brand 
1019.17 	name drug from its formulary or places a brand name drug in a benefit category that increases 
1019.18 	the enrollee's cost, provided the utilization review organization (1) adds to its formulary a 
1019.19 	generic or multisource brand name drug rated as therapeutically equivalent according to 
1019.20 	the FDA Orange Book, or a biologic drug rated as interchangeable according to the FDA 
1019.21 	Purple Book, at a lower cost to the enrollee, and (2) provides at least a 60-day notice to 
1019.22 	prescribers, pharmacists, and affected enrollees.

1019.23 	Sec. 31. [62M.19] ANNUAL REPORT TO COMMISSIONER OF HEALTH; PRIOR 
1019.24 	AUTHORIZATIONS.
1019.25 	On or before September 1 each year, each utilization review organization must report 
1019.26 	to the commissioner of health, in a form and manner specified by the commissioner, 
1019.27 	information on prior authorization requests for the previous calendar year. The report 
1019.28 	submitted under this subdivision must include the following data:
1019.29 	(1) the total number of prior authorization requests received;
1019.30 	(2) the number of prior authorization requests for which an authorization was issued;
1019.31 	(3) the number of prior authorization requests for which an adverse determination was 
1019.32 	issued;
1019.33 	(4) the number of adverse determinations reversed on appeal;
1020.1 	(5) the 25 codes with the highest number of prior authorization requests and the 
1020.2 	percentage of authorizations for each of these codes;
1020.3 	(6) the 25 codes with the highest percentage of prior authorization requests for which 
1020.4 	an authorization was issued and the total number of the requests;
1020.5 	(7) the 25 codes with the highest percentage of prior authorization requests for which 
1020.6 	an adverse determination was issued but which was reversed on appeal and the total number 
1020.7 	of the requests;
1020.8 	(8) the 25 codes with the highest percentage of prior authorization requests for which 
1020.9 	an adverse determination was issued and the total number of the requests; and
1020.10 	(9) the reasons an adverse determination to a prior authorization request was issued, 
1020.11 	expressed as a percentage of all adverse determinations. The reasons listed may include but 
1020.12 	are not limited to:
1020.13 	(i) the patient did not meet prior authorization criteria;
1020.14 	(ii) incomplete information was submitted by the provider to the utilization review 
1020.15 	organization;
1020.16 	(iii) the treatment program changed; and
1020.17 	(iv) the patient is no longer covered by the health benefit plan.

1020.18 	Sec. 32. Minnesota Statutes 2022, section 62Q.097, is amended by adding a subdivision 
1020.19 	to read:
1020.20 		Subd. 3.Prohibited application questions. An application for provider credentialing 
1020.21 	must not:
1020.22 	(1) require the provider to disclose past health conditions;
1020.23 	(2) require the provider to disclose current health conditions, if the provider is being 
1020.24 	treated so that the condition does not affect the provider's ability to practice medicine; or
1020.25 	(3) require the disclosure of any health conditions that would not affect the provider's 
1020.26 	ability to practice medicine in a competent, safe, and ethical manner.

1020.27 	EFFECTIVE DATE. This section applies to applications for provider credentialing 
1020.28 	submitted to a health plan company on or after January 1, 2025.

1021.1 	Sec. 33. Minnesota Statutes 2022, section 62Q.14, is amended to read:
1021.2 	62Q.14 RESTRICTIONS ON ENROLLEE SERVICES.
1021.3 	No health plan company may restrict the choice of an enrollee as to where the enrollee 
1021.4 	receives services related to:
1021.5 	(1) the voluntary planning of the conception and bearing of children, provided that this 
1021.6 	clause does not refer to abortion services;
1021.7 	(2) the diagnosis of infertility;
1021.8 	(3) the testing and treatment of a sexually transmitted disease; and
1021.9 	(4) the testing for AIDS or other HIV-related conditions.

1021.10 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to health 
1021.11 	plans offered, sold, issued, or renewed on or after that date.

1021.12 	Sec. 34. Minnesota Statutes 2022, section 62Q.19, subdivision 3, is amended to read:
1021.13 		Subd. 3.Health plan company affiliation. A health plan company must offer a provider 
1021.14 	contract to any all designated essential community provider providers located within the 
1021.15 	area served by the health plan company. A health plan company must include all essential 
1021.16 	community providers that have accepted a contract in each of the company's provider 
1021.17 	networks. A health plan company shall not restrict enrollee access to services designated 
1021.18 	to be provided by the essential community provider for the population that the essential 
1021.19 	community provider is certified to serve. A health plan company may also make other 
1021.20 	providers available for these services. A health plan company may require an essential 
1021.21 	community provider to meet all data requirements, utilization review, and quality assurance 
1021.22 	requirements on the same basis as other health plan providers.

1021.23 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to health 
1021.24 	plans offered, issued, or renewed on or after that date.

1021.25 	Sec. 35. Minnesota Statutes 2022, section 62Q.19, is amended by adding a subdivision to 
1021.26 	read:
1021.27 		Subd. 4a.Contract payment rates; private. An essential community provider and a 
1021.28 	health plan company may negotiate the payment rate for covered services provided by the 
1021.29 	essential community provider. This rate must be at least the same rate per unit of service 
1021.30 	as is paid by the health plan company to the essential community provider under the provider 
1021.31 	contract between the two with the highest number of enrollees receiving health care services 
1022.1 	from the provider or, if there is no provider contract between the health plan company and 
1022.2 	the essential community provider, the rate must be at least the same rate per unit of service 
1022.3 	as is paid to other plan providers for the same or similar services. The provider contract 
1022.4 	used to set the rate under this subdivision must be in relation to an individual, small group, 
1022.5 	or large group health plan. This subdivision applies only to provider contracts in relation 
1022.6 	to individual, small employer, and large group health plans.

1022.7 	Sec. 36. Minnesota Statutes 2022, section 62Q.19, subdivision 5, is amended to read:
1022.8 		Subd. 5.Contract payment rates; public. An essential community provider and a 
1022.9 	health plan company may negotiate the payment rate for covered services provided by the 
1022.10 	essential community provider. This rate must be at least the same rate per unit of service 
1022.11 	as is paid to other health plan providers for the same or similar services. This subdivision 
1022.12 	applies only to provider contracts in relation to health plans offered through the State 
1022.13 	Employee Group Insurance Program, medical assistance, and MinnesotaCare.

1022.14 	Sec. 37. Minnesota Statutes 2023 Supplement, section 62Q.473, is amended by adding a 
1022.15 	subdivision to read:
1022.16 		Subd. 3.Reimbursement. (a) The commissioner of commerce must reimburse health 
1022.17 	plan companies for coverage under this section. Reimbursement is available only for coverage 
1022.18 	that would not have been provided by the health plan without the requirements of this 
1022.19 	section. Treatments and services covered by the health plan as of January 1, 2023, are 
1022.20 	ineligible for payment under this subdivision by the commissioner of commerce.
1022.21 	(b) Health plan companies must report to the commissioner of commerce quantified 
1022.22 	costs attributable to the additional benefit under this section in a format developed by the 
1022.23 	commissioner. A health plan's coverage as of January 1, 2023, must be used by the health 
1022.24 	plan company as the basis for determining whether coverage would not have been provided 
1022.25 	by the health plan for purposes of this subdivision.
1022.26 	(c) The commissioner of commerce must evaluate submissions and make payments to 
1022.27 	health plan companies as provided in Code of Federal Regulations, title 45, section 155.170.

1022.28 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to health 
1022.29 	plans offered, issued, or renewed on or after that date.

1023.1 	Sec. 38. Minnesota Statutes 2023 Supplement, section 62Q.473, is amended by adding a 
1023.2 	subdivision to read:
1023.3 		Subd. 4.Appropriation. Each fiscal year, an amount necessary to make payments to 
1023.4 	health plan companies to defray the cost of providing coverage under this section is 
1023.5 	appropriated to the commissioner of commerce.

1023.6 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to health 
1023.7 	plans offered, issued, or renewed on or after that date.

1023.8 	Sec. 39. [62Q.524] COVERAGE OF ABORTIONS AND ABORTION-RELATED 
1023.9 	SERVICES.
1023.10 		Subdivision 1.Definition. For purposes of this section, "abortion" means any medical 
1023.11 	treatment intended to induce the termination of a pregnancy with a purpose other than 
1023.12 	producing a live birth.
1023.13 		Subd. 2.Required coverage. (a) A health plan must provide coverage for abortions and 
1023.14 	abortion-related services, including preabortion services and follow-up services.
1023.15 	(b) A health plan must not impose on the coverage under this section any co-payment, 
1023.16 	coinsurance, deductible, or other enrollee cost-sharing that is greater than the cost-sharing 
1023.17 	that applies to similar services covered under the health plan.
1023.18 	(c) A health plan must not impose any limitation on the coverage under this section, 
1023.19 	including but not limited to any utilization review, prior authorization, referral requirements, 
1023.20 	restrictions, or delays, that is not generally applicable to other coverages under the plan.
1023.21 		Subd. 3.Exclusion. This section does not apply to managed care organizations or 
1023.22 	county-based purchasing plans when the plan provides coverage to public health care 
1023.23 	program enrollees under chapter 256B or 256L.
1023.24 		Subd. 4.Reimbursement. (a) The commissioner of commerce must reimburse health 
1023.25 	plan companies for coverage under this section. Reimbursement is available only for coverage 
1023.26 	that would not have been provided by the health plan without the requirements of this 
1023.27 	section. Treatments and services covered by the health plan as of January 1, 2024, are 
1023.28 	ineligible for payment under this subdivision by the commissioner of commerce.
1023.29 	(b) Health plan companies must report to the commissioner of commerce quantified 
1023.30 	costs attributable to the additional benefit under this section in a format developed by the 
1023.31 	commissioner. A health plan's coverage as of January 1, 2024, must be used by the health 
1024.1 	plan company as the basis for determining whether coverage would not have been provided 
1024.2 	by the health plan for purposes of this subdivision.
1024.3 	(c) The commissioner of commerce must evaluate submissions and make payments to 
1024.4 	health plan companies as provided in Code of Federal Regulations, title 45, section 155.170.
1024.5 		Subd. 5.Appropriation. Each fiscal year, an amount necessary to make payments to 
1024.6 	health plan companies to defray the cost of providing coverage under this section is 
1024.7 	appropriated to the commissioner of commerce.

1024.8 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to health 
1024.9 	plans offered, sold, issued, or renewed on or after that date.

1024.10 	Sec. 40. [62Q.531] AMINO ACID-BASED FORMULA COVERAGE.
1024.11 		Subdivision 1.Definition. (a) For purposes of this section, the following term has the 
1024.12 	meaning given.
1024.13 	(b) "Formula" means an amino acid-based elemental formula.
1024.14 		Subd. 2.Required coverage. A health plan company must provide coverage for formula 
1024.15 	when formula is medically necessary.
1024.16 		Subd. 3.Covered conditions. Conditions for which formula is medically necessary 
1024.17 	include but are not limited to:
1024.18 	(1) cystic fibrosis;
1024.19 	(2) amino acid, organic acid, and fatty acid metabolic and malabsorption disorders;
1024.20 	(3) IgE mediated allergies to food proteins;
1024.21 	(4) food protein-induced enterocolitis syndrome;
1024.22 	(5) eosinophilic esophagitis;
1024.23 	(6) eosinophilic gastroenteritis;
1024.24 	(7) eosinophilic colitis; and
1024.25 	(8) mast cell activation syndrome.

1024.26 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to health 
1024.27 	plans offered, issued, or sold on or after that date.

1025.1 	Sec. 41. [62Q.665] COVERAGE FOR ORTHOTIC AND PROSTHETIC DEVICES.
1025.2 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
1025.3 	the meanings given.
1025.4 	(b) "Accredited facility" means any entity that is accredited to provide comprehensive 
1025.5 	orthotic or prosthetic devices or services by a Centers for Medicare and Medicaid Services 
1025.6 	approved accrediting agency.
1025.7 	(c) "Orthosis" means:
1025.8 	(1) an external medical device that is:
1025.9 	(i) custom-fabricated or custom-fitted to a specific patient based on the patient's unique 
1025.10 	physical condition;
1025.11 	(ii) applied to a part of the body to correct a deformity, provide support and protection, 
1025.12 	restrict motion, improve function, or relieve symptoms of a disease, syndrome, injury, or 
1025.13 	postoperative condition; and
1025.14 	(iii) deemed medically necessary by a prescribing physician or licensed health care 
1025.15 	provider who has authority in Minnesota to prescribe orthotic and prosthetic devices, supplies, 
1025.16 	and services; and
1025.17 	(2) any provision, repair, or replacement of a device that is furnished or performed by:
1025.18 	(i) an accredited facility in comprehensive orthotic services; or
1025.19 	(ii) a health care provider licensed in Minnesota and operating within the provider's 
1025.20 	scope of practice which allows the provider to provide orthotic or prosthetic devices, supplies, 
1025.21 	or services.
1025.22 	(d) "Orthotics" means:
1025.23 	(1) the science and practice of evaluating, measuring, designing, fabricating, assembling, 
1025.24 	fitting, adjusting, or servicing and providing the initial training necessary to accomplish the 
1025.25 	fitting of an orthotic device for the support, correction, or alleviation of a neuromuscular 
1025.26 	or musculoskeletal dysfunction, disease, injury, or deformity;
1025.27 	(2) evaluation, treatment, and consultation related to an orthotic device;
1025.28 	(3) basic observation of gait and postural analysis;
1025.29 	(4) assessing and designing orthosis to maximize function and provide support and 
1025.30 	alignment necessary to prevent or correct a deformity or to improve the safety and efficiency 
1025.31 	of mobility and locomotion;
1026.1 	(5) continuing patient care to assess the effect of an orthotic device on the patient's 
1026.2 	tissues; and
1026.3 	(6) proper fit and function of the orthotic device by periodic evaluation.
1026.4 	(e) "Prosthesis" means:
1026.5 	(1) an external medical device that is:
1026.6 	(i) used to replace or restore a missing limb, appendage, or other external human body 
1026.7 	part; and
1026.8 	(ii) deemed medically necessary by a prescribing physician or licensed health care 
1026.9 	provider who has authority in Minnesota to prescribe orthotic and prosthetic devices, supplies, 
1026.10 	and services; and
1026.11 	(2) any provision, repair, or replacement of a device that is furnished or performed by:
1026.12 	(i) an accredited facility in comprehensive prosthetic services; or
1026.13 	(ii) a health care provider licensed in Minnesota and operating within the provider's 
1026.14 	scope of practice which allows the provider to provide orthotic or prosthetic devices, supplies, 
1026.15 	or services.
1026.16 	(f) "Prosthetics" means:
1026.17 	(1) the science and practice of evaluating, measuring, designing, fabricating, assembling, 
1026.18 	fitting, aligning, adjusting, or servicing, as well as providing the initial training necessary 
1026.19 	to accomplish the fitting of, a prosthesis through the replacement of external parts of a 
1026.20 	human body lost due to amputation or congenital deformities or absences;
1026.21 	(2) the generation of an image, form, or mold that replicates the patient's body segment 
1026.22 	and that requires rectification of dimensions, contours, and volumes for use in the design 
1026.23 	and fabrication of a socket to accept a residual anatomic limb to, in turn, create an artificial 
1026.24 	appendage that is designed either to support body weight or to improve or restore function 
1026.25 	or anatomical appearance, or both;
1026.26 	(3) observational gait analysis and clinical assessment of the requirements necessary to 
1026.27 	refine and mechanically fix the relative position of various parts of the prosthesis to maximize 
1026.28 	function, stability, and safety of the patient;
1026.29 	(4) providing and continuing patient care in order to assess the prosthetic device's effect 
1026.30 	on the patient's tissues; and
1026.31 	(5) assuring proper fit and function of the prosthetic device by periodic evaluation.
1027.1 		Subd. 2.Coverage. (a) A health plan must provide coverage for orthotic and prosthetic 
1027.2 	devices, supplies, and services, including repair and replacement, at least equal to the 
1027.3 	coverage provided under federal law for health insurance for the aged and disabled under 
1027.4 	sections 1832, 1833, and 1834 of the Social Security Act, United States Code, title 42, 
1027.5 	sections 1395k, 1395l, and 1395m, but only to the extent consistent with this section.
1027.6 	(b) A health plan must not subject orthotic and prosthetic benefits to separate financial 
1027.7 	requirements that apply only with respect to those benefits. A health plan may impose 
1027.8 	co-payment and coinsurance amounts on those benefits, except that any financial 
1027.9 	requirements that apply to such benefits must not be more restrictive than the financial 
1027.10 	requirements that apply to the health plan's medical and surgical benefits, including those 
1027.11 	for internal restorative devices.
1027.12 	(c) A health plan may limit the benefits for, or alter the financial requirements for, 
1027.13 	out-of-network coverage of prosthetic and orthotic devices, except that the restrictions and 
1027.14 	requirements that apply to those benefits must not be more restrictive than the financial 
1027.15 	requirements that apply to the out-of-network coverage for the health plan's medical and 
1027.16 	surgical benefits.
1027.17 	(d) A health plan must cover orthoses and prostheses when furnished under an order by 
1027.18 	a prescribing physician or licensed health care prescriber who has authority in Minnesota 
1027.19 	to prescribe orthoses and prostheses, and that coverage for orthotic and prosthetic devices, 
1027.20 	supplies, accessories, and services must include those devices or device systems, supplies, 
1027.21 	accessories, and services that are customized to the covered individual's needs.
1027.22 	(e) A health plan must cover orthoses and prostheses determined by the enrollee's provider 
1027.23 	to be the most appropriate model that meets the medical needs of the enrollee for purposes 
1027.24 	of performing physical activities, as applicable, including but not limited to running, biking, 
1027.25 	and swimming, and maximizing the enrollee's limb function.
1027.26 	(f) A health plan must cover orthoses and prostheses for showering or bathing.
1027.27 		Subd. 3.Prior authorization. A health plan may require prior authorization for orthotic 
1027.28 	and prosthetic devices, supplies, and services in the same manner and to the same extent as 
1027.29 	prior authorization is required for any other covered benefit.
1027.30 		Subd. 4.Reimbursement. (a) The commissioner of commerce must reimburse health 
1027.31 	plan companies for coverage under this section. Reimbursement is available only for coverage 
1027.32 	that would not have been provided by the health plan without the requirements of this 
1027.33 	section. Treatments and services covered by the health plan as of January 1, 2024, are 
1027.34 	ineligible for payment under this subdivision by the commissioner of commerce.
1028.1 	(b) Health plan companies must report to the commissioner of commerce quantified 
1028.2 	costs attributable to the additional benefit under this section in a format developed by the 
1028.3 	commissioner. A health plan's coverage as of January 1, 2024, must be used by the health 
1028.4 	plan company as the basis for determining whether coverage would not have been provided 
1028.5 	by the health plan for purposes of this subdivision.
1028.6 	(c) The commissioner of commerce must evaluate submissions and make payments to 
1028.7 	health plan companies as provided in Code of Federal Regulations, title 45, section 155.170.
1028.8 		Subd. 5.Appropriation. Each fiscal year, an amount necessary to make payments to 
1028.9 	health plan companies to defray the cost of providing coverage under this section is 
1028.10 	appropriated to the commissioner of commerce.

1028.11 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to all health 
1028.12 	plans offered, issued, or renewed on or after that date.

1028.13 	Sec. 42. [62Q.6651] MEDICAL NECESSITY AND NONDISCRIMINATION 
1028.14 	STANDARDS FOR COVERAGE OF PROSTHETICS OR ORTHOTICS.
1028.15 	(a) When performing a utilization review for a request for coverage of prosthetic or 
1028.16 	orthotic benefits, a health plan company shall apply the most recent version of evidence-based 
1028.17 	treatment and fit criteria as recognized by relevant clinical specialists.
1028.18 	(b) A health plan company shall render utilization review determinations in a 
1028.19 	nondiscriminatory manner and shall not deny coverage for habilitative or rehabilitative 
1028.20 	benefits, including prosthetics or orthotics, solely on the basis of an enrollee's actual or 
1028.21 	perceived disability.
1028.22 	(c) A health plan company shall not deny a prosthetic or orthotic benefit for an individual 
1028.23 	with limb loss or absence that would otherwise be covered for a nondisabled person seeking 
1028.24 	medical or surgical intervention to restore or maintain the ability to perform the same 
1028.25 	physical activity.
1028.26 	(d) A health plan offered, issued, or renewed in Minnesota that offers coverage for 
1028.27 	prosthetics and custom orthotic devices shall include language describing an enrollee's rights 
1028.28 	pursuant to paragraphs (b) and (c) in its evidence of coverage and any benefit denial letters.
1028.29 	(e) A health plan that provides coverage for prosthetic or orthotic services shall ensure 
1028.30 	access to medically necessary clinical care and to prosthetic and custom orthotic devices 
1028.31 	and technology from not less than two distinct prosthetic and custom orthotic providers in 
1028.32 	the plan's provider network located in Minnesota. In the event that medically necessary 
1028.33 	covered orthotics and prosthetics are not available from an in-network provider, the health 
1029.1 	plan company shall provide processes to refer a member to an out-of-network provider and 
1029.2 	shall fully reimburse the out-of-network provider at a mutually agreed upon rate less member 
1029.3 	cost sharing determined on an in-network basis.
1029.4 	(f) If coverage for prosthetic or custom orthotic devices is provided, payment shall be 
1029.5 	made for the replacement of a prosthetic or custom orthotic device or for the replacement 
1029.6 	of any part of the devices, without regard to continuous use or useful lifetime restrictions, 
1029.7 	if an ordering health care provider determines that the provision of a replacement device, 
1029.8 	or a replacement part of a device, is necessary because:
1029.9 	(1) of a change in the physiological condition of the patient;
1029.10 	(2) of an irreparable change in the condition of the device or in a part of the device; or
1029.11 	(3) the condition of the device, or the part of the device, requires repairs and the cost of 
1029.12 	the repairs would be more than 60 percent of the cost of a replacement device or of the part 
1029.13 	being replaced.
1029.14 	(g) Confirmation from a prescribing health care provider may be required if the prosthetic 
1029.15 	or custom orthotic device or part being replaced is less than three years old.

1029.16 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to all health 
1029.17 	plans offered, issued, or renewed on or after that date.

1029.18 	Sec. 43. [62Q.666] INTERMITTENT CATHETERS.
1029.19 		Subdivision 1.Required coverage. A health plan must provide coverage for intermittent 
1029.20 	urinary catheters and insertion supplies if intermittent catheterization is recommended by 
1029.21 	the enrollee's health care provider. At least 180 intermittent catheters per month with insertion 
1029.22 	supplies must be covered unless a lesser amount is prescribed by the enrollee's health care 
1029.23 	provider. A health plan providing coverage under the medical assistance program may be 
1029.24 	required to provide coverage for more than 180 intermittent catheters per month with 
1029.25 	insertion supplies.
1029.26 		Subd. 2.Cost-sharing requirements. A health plan is prohibited from imposing a 
1029.27 	deductible, co-payment, coinsurance, or other restriction on intermittent catheters and 
1029.28 	insertion supplies that the health plan does not apply to durable medical equipment in general.

1029.29 	EFFECTIVE DATE. This section is effective for any health plan issued or renewed 
1029.30 	on or after January 1, 2025.

1030.1 	Sec. 44. [62Q.679] RELIGIOUS OBJECTIONS.
1030.2 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this section.
1030.3 	(b) "Closely held for-profit entity" means an entity that is not a nonprofit entity, has 
1030.4 	more than 50 percent of the value of its ownership interest owned directly or indirectly by 
1030.5 	five or fewer owners, and has no publicly traded ownership interest. For purposes of this 
1030.6 	paragraph:
1030.7 	(1) ownership interests owned by a corporation, partnership, limited liability company, 
1030.8 	estate, trust, or similar entity are considered owned by that entity's shareholders, partners, 
1030.9 	members, or beneficiaries in proportion to their interest held in the corporation, partnership, 
1030.10 	limited liability company, estate, trust, or similar entity;
1030.11 	(2) ownership interests owned by a nonprofit entity are considered owned by a single 
1030.12 	owner;
1030.13 	(3) ownership interests owned by all individuals in a family are considered held by a 
1030.14 	single owner. For purposes of this clause, "family" means brothers and sisters, including 
1030.15 	half-brothers and half-sisters, a spouse, ancestors, and lineal descendants; and
1030.16 	(4) if an individual or entity holds an option, warrant, or similar right to purchase an 
1030.17 	ownership interest, the individual or entity is considered to be the owner of those ownership 
1030.18 	interests.
1030.19 	(c) "Eligible organization" means an organization that opposes covering some or all 
1030.20 	health benefits under section 62Q.522, 62Q.524, or 62Q.585 on account of religious 
1030.21 	objections and that is:
1030.22 	(1) organized as a nonprofit entity and holds itself out to be religious; or
1030.23 	(2) organized and operates as a closely held for-profit entity, and the organization's 
1030.24 	owners or highest governing body has adopted, under the organization's applicable rules of 
1030.25 	governance and consistent with state law, a resolution or similar action establishing that the 
1030.26 	organization objects to covering some or all health benefits under section 62Q.522, 62Q.524, 
1030.27 	or 62Q.585 on account of the owners' sincerely held religious beliefs.
1030.28 	(d) "Exempt organization" means an organization that is organized and operates as a 
1030.29 	nonprofit entity and meets the requirements of section 6033(a)(3)(A)(i) or (iii) of the Internal 
1030.30 	Revenue Code of 1986, as amended.
1030.31 		Subd. 2.Exemption. (a) An exempt organization is not required to provide coverage 
1030.32 	under section 62Q.522, 62Q.524, or 62Q.585 if the exempt organization has religious 
1031.1 	objections to the coverage. An exempt organization that chooses to not provide coverage 
1031.2 	pursuant to this paragraph must notify employees as part of the hiring process and must 
1031.3 	notify all employees at least 30 days before:
1031.4 	(1) an employee enrolls in the health plan; or
1031.5 	(2) the effective date of the health plan, whichever occurs first.
1031.6 	(b) If the exempt organization provides partial coverage under section 62Q.522, 62Q.524, 
1031.7 	or 62Q.585, the notice required under paragraph (a) must provide a list of the portions of 
1031.8 	such coverage which the organization refuses to cover.
1031.9 		Subd. 3.Accommodation for eligible organizations. (a) A health plan established or 
1031.10 	maintained by an eligible organization complies with the coverage requirements of section 
1031.11 	62Q.522, 62Q.524, or 62Q.585, with respect to the health benefits identified in the notice 
1031.12 	under this paragraph, if the eligible organization provides notice to any health plan company 
1031.13 	with which the eligible organization contracts that it is an eligible organization and that the 
1031.14 	eligible organization has a religious objection to coverage for all or a subset of the health 
1031.15 	benefits under section 62Q.522, 62Q.524, or 62Q.585.
1031.16 	(b) The notice from an eligible organization to a health plan company under paragraph 
1031.17 	(a) must include: (1) the name of the eligible organization; (2) a statement that it objects to 
1031.18 	coverage for some or all of the health benefits under section 62Q.522, 62Q.524, or 62Q.585, 
1031.19 	including a list of the health benefits to which the eligible organization objects, if applicable; 
1031.20 	and (3) the health plan name. The notice must be executed by a person authorized to provide 
1031.21 	notice on behalf of the eligible organization.
1031.22 	(c) An eligible organization must provide a copy of the notice under paragraph (a) to 
1031.23 	prospective employees as part of the hiring process and to all employees at least 30 days 
1031.24 	before:
1031.25 	(1) an employee enrolls in the health plan; or
1031.26 	(2) the effective date of the health plan, whichever occurs first.
1031.27 	(d) A health plan company that receives a copy of the notice under paragraph (a) with 
1031.28 	respect to a health plan established or maintained by an eligible organization must, for all 
1031.29 	future enrollments in the health plan:
1031.30 	(1) expressly exclude coverage for those health benefits identified in the notice under 
1031.31 	paragraph (a) from the health plan; and
1032.1 	(2) provide separate payments for any health benefits required to be covered under 
1032.2 	section 62Q.522, 62Q.524, or 62Q.585 for enrollees as long as the enrollee remains enrolled 
1032.3 	in the health plan.
1032.4 	(e) The health plan company must not impose any cost-sharing requirements, including 
1032.5 	co-pays, deductibles, or coinsurance, or directly or indirectly impose any premium, fee, or 
1032.6 	other charge for the health benefits under section 62Q.522 on the enrollee. The health plan 
1032.7 	company must not directly or indirectly impose any premium, fee, or other charge for the 
1032.8 	health benefits under section 62Q.522, 62Q.524, or 62Q.585 on the eligible organization 
1032.9 	or health plan.
1032.10 	(f) On January 1, 2025, and every year thereafter a health plan company must notify the 
1032.11 	commissioner, in a manner determined by the commissioner, of the number of eligible 
1032.12 	organizations granted an accommodation under this subdivision.

1032.13 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to health 
1032.14 	plans offered, sold, issued, or renewed on or after that date.

1032.15 	Sec. 45. Minnesota Statutes 2022, section 62Q.73, subdivision 2, is amended to read:
1032.16 		Subd. 2.Exception. (a) This section does not apply to governmental programs except 
1032.17 	as permitted under paragraph (b). For purposes of this subdivision, "governmental programs" 
1032.18 	means the prepaid medical assistance program,;effective January 1, 2026, the medical 
1032.19 	assistance fee-for-service program; the MinnesotaCare program,; the demonstration project 
1032.20 	for people with disabilities,; and the federal Medicare program.
1032.21 	(b) In the course of a recipient's appeal of a medical determination to the commissioner 
1032.22 	of human services under section 256.045, the recipient may request an expert medical 
1032.23 	opinion be arranged by the external review entity under contract to provide independent 
1032.24 	external reviews under this section. If such a request is made, the cost of the review shall 
1032.25 	be paid by the commissioner of human services. Any medical opinion obtained under this 
1032.26 	paragraph shall only be used by a state human services judge as evidence in the recipient's 
1032.27 	appeal to the commissioner of human services under section 256.045.
1032.28 	(c) Nothing in this subdivision shall be construed to limit or restrict the appeal rights 
1032.29 	provided in section 256.045 for governmental program recipients.

1033.1 	Sec. 46. Minnesota Statutes 2023 Supplement, section 145D.01, subdivision 1, is amended 
1033.2 	to read:
1033.3 		Subdivision 1.Definitions. (a) For purposes of this chapter section and section 145D.02, 
1033.4 	the following terms have the meanings given.
1033.5 	(b) "Captive professional entity" means a professional corporation, limited liability 
1033.6 	company, or other entity formed to render professional services in which a beneficial owner 
1033.7 	is a health care provider employed by, controlled by, or subject to the direction of a hospital 
1033.8 	or hospital system.
1033.9 	(c) "Commissioner" means the commissioner of health.
1033.10 	(d) "Control," including the terms "controlling," "controlled by," and "under common 
1033.11 	control with," means the possession, direct or indirect, of the power to direct or cause the 
1033.12 	direction of the management and policies of a health care entity, whether through the 
1033.13 	ownership of voting securities, membership in an entity formed under chapter 317A, by 
1033.14 	contract other than a commercial contract for goods or nonmanagement services, or otherwise, 
1033.15 	unless the power is the result of an official position with, corporate office held by, or court 
1033.16 	appointment of, the person. Control is presumed to exist if any person, directly or indirectly, 
1033.17 	owns, controls, holds with the power to vote, or holds proxies representing 40 percent or 
1033.18 	more of the voting securities of any other person, or if any person, directly or indirectly, 
1033.19 	constitutes 40 percent or more of the membership of an entity formed under chapter 317A. 
1033.20 	The attorney general may determine that control exists in fact, notwithstanding the absence 
1033.21 	of a presumption to that effect.
1033.22 	(e) "Health care entity" means:
1033.23 	(1) a hospital;
1033.24 	(2) a hospital system;
1033.25 	(3) a captive professional entity;
1033.26 	(4) a medical foundation;
1033.27 	(5) a health care provider group practice;
1033.28 	(6) an entity organized or controlled by an entity listed in clauses (1) to (5); or
1033.29 	(7) an entity that owns or exercises control over an entity listed in clauses (1) to (5).
1033.30 	(f) "Health care provider" means a physician licensed under chapter 147, a physician 
1033.31 	assistant licensed under chapter 147A, or an advanced practice registered nurse as defined 
1034.1 	in section 148.171, subdivision 3, who provides health care services, including but not 
1034.2 	limited to medical care, consultation, diagnosis, or treatment.
1034.3 	(g) "Health care provider group practice" means two or more health care providers legally 
1034.4 	organized in a partnership, professional corporation, limited liability company, medical 
1034.5 	foundation, nonprofit corporation, faculty practice plan, or other similar entity:
1034.6 	(1) in which each health care provider who is a member of the group provides services 
1034.7 	that a health care provider routinely provides, including but not limited to medical care, 
1034.8 	consultation, diagnosis, and treatment, through the joint use of shared office space, facilities, 
1034.9 	equipment, or personnel;
1034.10 	(2) for which substantially all services of the health care providers who are group 
1034.11 	members are provided through the group and are billed in the name of the group practice 
1034.12 	and amounts so received are treated as receipts of the group; or
1034.13 	(3) in which the overhead expenses of, and the income from, the group are distributed 
1034.14 	in accordance with methods previously determined by members of the group.
1034.15 	An entity that otherwise meets the definition of health care provider group practice in this 
1034.16 	paragraph shall be considered a health care provider group practice even if its shareholders, 
1034.17 	partners, members, or owners include a professional corporation, limited liability company, 
1034.18 	or other entity in which any beneficial owner is a health care provider and that is formed to 
1034.19 	render professional services.
1034.20 	(h) "Hospital" means a health care facility licensed as a hospital under sections 144.50 
1034.21 	to 144.56.
1034.22 	(i) "Medical foundation" means a nonprofit legal entity through which health care 
1034.23 	providers perform research or provide medical services.
1034.24 	(j) "Transaction" means a single action, or a series of actions within a five-year period, 
1034.25 	which occurs in part within the state of Minnesota or involves a health care entity formed 
1034.26 	or licensed in Minnesota, that constitutes:
1034.27 	(1) a merger or exchange of a health care entity with another entity;
1034.28 	(2) the sale, lease, or transfer of 40 percent or more of the assets of a health care entity 
1034.29 	to another entity;
1034.30 	(3) the granting of a security interest of 40 percent or more of the property and assets 
1034.31 	of a health care entity to another entity;
1035.1 	(4) the transfer of 40 percent or more of the shares or other ownership of a health care 
1035.2 	entity to another entity;
1035.3 	(5) an addition, removal, withdrawal, substitution, or other modification of one or more 
1035.4 	members of the health care entity's governing body that transfers control, responsibility for, 
1035.5 	or governance of the health care entity to another entity;
1035.6 	(6) the creation of a new health care entity;
1035.7 	(7) an agreement or series of agreements that results in the sharing of 40 percent or more 
1035.8 	of the health care entity's revenues with another entity, including affiliates of such other 
1035.9 	entity;
1035.10 	(8) an addition, removal, withdrawal, substitution, or other modification of the members 
1035.11 	of a health care entity formed under chapter 317A that results in a change of 40 percent or 
1035.12 	more of the membership of the health care entity; or
1035.13 	(9) any other transfer of control of a health care entity to, or acquisition of control of a 
1035.14 	health care entity by, another entity.
1035.15 	(k) A transaction as defined in paragraph (j) does not include:
1035.16 	(1) an action or series of actions that meets one or more of the criteria set forth in 
1035.17 	paragraph (j), clauses (1) to (9), if, immediately prior to all such actions, the health care 
1035.18 	entity directly, or indirectly through one or more intermediaries, controls, is controlled by, 
1035.19 	or is under common control with, all other parties to the action or series of actions;
1035.20 	(2) a mortgage or other secured loan for business improvement purposes entered into 
1035.21 	by a health care entity that does not directly affect delivery of health care or governance of 
1035.22 	the health care entity;
1035.23 	(3) a clinical affiliation of health care entities formed solely for the purpose of 
1035.24 	collaborating on clinical trials or providing graduate medical education;
1035.25 	(4) the mere offer of employment to, or hiring of, a health care provider by a health care 
1035.26 	entity;
1035.27 	(5) contracts between a health care entity and a health care provider primarily for clinical 
1035.28 	services; or
1035.29 	(6) a single action or series of actions within a five-year period involving only entities 
1035.30 	that operate solely as a nursing home licensed under chapter 144A; a boarding care home 
1035.31 	licensed under sections 144.50 to 144.56; a supervised living facility licensed under sections 
1035.32 	144.50 to 144.56; an assisted living facility licensed under chapter 144G; a foster care setting 
1036.1 	licensed under Minnesota Rules, parts 9555.5105 to 9555.6265, for a physical location that 
1036.2 	is not the primary residence of the license holder; a community residential setting as defined 
1036.3 	in section 245D.02, subdivision 4a; or a home care provider licensed under sections 144A.471 
1036.4 	to 144A.483.

1036.5 	EFFECTIVE DATE. This section is effective July 1, 2025.

1036.6 	Sec. 47. [145D.30] DEFINITIONS.
1036.7 		Subdivision 1.Application. For purposes of sections 145D.30 to 145D.37, the following 
1036.8 	terms have the meanings given unless the context clearly indicates otherwise.
1036.9 		Subd. 2.Commissioner "Commissioner" means the commissioner of commerce for a 
1036.10 	nonprofit health coverage entity that is a nonprofit health service plan corporation operating 
1036.11 	under chapter 62C or the commissioner of health for a nonprofit health coverage entity that 
1036.12 	is a nonprofit health maintenance organization operating under chapter 62D.
1036.13 		Subd. 3.Control. "Control," including the terms "controlling," "controlled by," and 
1036.14 	"under common control with," means the possession, direct or indirect, of the power to 
1036.15 	direct or cause the direction of the management and policies of a nonprofit health coverage 
1036.16 	entity, whether through the ownership of voting securities, through membership in an entity 
1036.17 	formed under chapter 317A, by contract other than a commercial contract for goods or 
1036.18 	nonmanagement services, or otherwise, unless the power is the result of an official position 
1036.19 	with, corporate office held by, or court appointment of the person. Control is presumed to 
1036.20 	exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or 
1036.21 	holds proxies representing 40 percent or more of the voting securities of any other person 
1036.22 	or if any person, directly or indirectly, constitutes 40 percent or more of the membership 
1036.23 	of an entity formed under chapter 317A. The attorney general may determine that control 
1036.24 	exists in fact, notwithstanding the absence of a presumption to that effect.
1036.25 		Subd. 4.Conversion transaction. "Conversion transaction" means a transaction otherwise 
1036.26 	permitted under applicable law in which a nonprofit health coverage entity:
1036.27 	(1) merges, consolidates, converts, or transfers all or substantially all of its assets to any 
1036.28 	entity except a corporation that is exempt under United States Code, title 26, section 
1036.29 	501(c)(3);
1036.30 	(2) makes a series of separate transfers within a 60-month period that in the aggregate 
1036.31 	constitute a transfer of all or substantially all of the nonprofit health coverage entity's assets 
1036.32 	to any entity except a corporation that is exempt under United States Code, title 26, section 
1036.33 	501(c)(3); or
1037.1 	(3) adds or substitutes one or more directors or officers that effectively transfer the 
1037.2 	control of, responsibility for, or governance of the nonprofit health coverage entity to any 
1037.3 	entity except a corporation that is exempt under United States Code, title 26, section 
1037.4 	501(c)(3).
1037.5 		Subd. 5.Corporation. "Corporation" has the meaning given in section 317A.011, 
1037.6 	subdivision 6, and also includes a nonprofit limited liability company organized under 
1037.7 	section 322C.1101.
1037.8 		Subd. 6.Director. "Director" has the meaning given in section 317A.011, subdivision 
1037.9 	7.
1037.10 		Subd. 7.Family member. "Family member" means a spouse, parent, child, spouse of 
1037.11 	a child, brother, sister, or spouse of a brother or sister.
1037.12 		Subd. 8.Full and fair value. "Full and fair value" means at least the amount that the 
1037.13 	public benefit assets of the nonprofit health coverage entity would be worth if the assets 
1037.14 	were equal to stock in the nonprofit health coverage entity, if the nonprofit health coverage 
1037.15 	entity was a for-profit corporation and if the nonprofit health coverage entity had 100 percent 
1037.16 	of its stock authorized by the corporation and available for purchase without transfer 
1037.17 	restrictions. The valuation shall consider market value, investment or earning value, net 
1037.18 	asset value, goodwill, amount of donations received, and control premium, if any.
1037.19 		Subd. 9.Nonprofit health coverage entity. "Nonprofit health coverage entity" means 
1037.20 	a domestic nonprofit health service plan corporation operating under chapter 62C or a 
1037.21 	domestic nonprofit health maintenance organization operating under chapter 62D.
1037.22 		Subd. 10.Officer. "Officer" has the meaning given in section 317A.011, subdivision 
1037.23 	15.
1037.24 		Subd. 11.Public benefit assets. "Public benefit assets" means the entirety of a nonprofit 
1037.25 	health coverage entity's assets, whether tangible or intangible, including but not limited to 
1037.26 	its goodwill and anticipated future revenue.
1037.27 		Subd. 12.Related organization. "Related organization" has the meaning given in section 
1037.28 	317A.011, subdivision 18.

1037.29 	EFFECTIVE DATE. This section is effective July 1, 2025.

1037.30 	Sec. 48. [145D.31] CERTAIN CONVERSION TRANSACTIONS PROHIBITED.
1037.31 	A nonprofit health coverage entity must not enter into a conversion transaction if:
1038.1 	(1) doing so would result in less than the full and fair value of all public benefit assets 
1038.2 	remaining dedicated to the public benefit; or
1038.3 	(2) an individual who has been an officer, director, or other executive of the nonprofit 
1038.4 	health coverage entity or of a related organization, or a family member of such an individual:
1038.5 	(i) has held or will hold, whether guaranteed or contingent, an ownership stake, stock, 
1038.6 	securities, investment, or other financial interest in an entity to which the nonprofit health 
1038.7 	coverage entity transfers public benefit assets in connection with the conversion transaction;
1038.8 	(ii) has received or will receive any type of compensation or other financial benefit, 
1038.9 	except for salary or wages paid for employment, from an entity to which the nonprofit health 
1038.10 	coverage entity transfers public benefit assets in connection with the conversion transaction;
1038.11 	(iii) has held or will hold, whether guaranteed or contingent, an ownership stake, stock, 
1038.12 	securities, investment, or other financial interest in an entity that has or will have a business 
1038.13 	relationship with an entity to which the nonprofit health coverage entity transfers public 
1038.14 	benefit assets in connection with the conversion transaction; or
1038.15 	(iv) has received or will receive any type of compensation or other financial benefit, 
1038.16 	except for salary or wages paid for employment, from an entity that has or will have a 
1038.17 	business relationship with an entity to which the nonprofit health coverage entity transfers 
1038.18 	public benefit assets in connection with the conversion transaction.

1038.19 	EFFECTIVE DATE. This section is effective July 1, 2025.

1038.20 	Sec. 49. [145D.32] REQUIREMENTS FOR NONPROFIT HEALTH COVERAGE 
1038.21 	ENTITY CONVERSION TRANSACTIONS.
1038.22 		Subdivision 1.Notice. (a) Before entering into a conversion transaction, a nonprofit 
1038.23 	health coverage entity must notify the attorney general according to section 317A.811. In 
1038.24 	addition to the elements listed in section 317A.811, subdivision 1, the notice required by 
1038.25 	this subdivision must also include: (1) an itemization of the nonprofit health coverage entity's 
1038.26 	public benefit assets and an independent third-party valuation of the nonprofit health coverage 
1038.27 	entity's public benefit assets; and (2) other information contained in forms provided by the 
1038.28 	attorney general.
1038.29 	(b) When the nonprofit health coverage entity provides the attorney general with the 
1038.30 	notice and other information required under paragraph (a), the nonprofit health coverage 
1038.31 	entity must also provide a copy of this notice and other information to the applicable 
1038.32 	commissioner.
1039.1 		Subd. 2.Nonprofit health coverage entity requirements. Before entering into a 
1039.2 	conversion transaction, a nonprofit health coverage entity must ensure that:
1039.3 	(1) the proposed conversion transaction complies with chapters 317A and 501B and 
1039.4 	other applicable laws;
1039.5 	(2) the proposed conversion transaction does not involve or constitute a breach of 
1039.6 	charitable trust;
1039.7 	(3) the nonprofit health coverage entity shall receive full and fair value for its public 
1039.8 	benefit assets;
1039.9 	(4) the value of the public benefit assets to be transferred has not been manipulated in 
1039.10 	a manner that causes or caused the value of the assets to decrease;
1039.11 	(5) the proceeds of the proposed conversion transaction shall be used in a manner 
1039.12 	consistent with the public benefit for which the assets are held by the nonprofit health 
1039.13 	coverage entity; and
1039.14 	(6) the proposed conversion transaction shall not result in a breach of fiduciary duty.
1039.15 		Subd. 3.Listening sessions and public comment. The attorney general or the 
1039.16 	commissioner may hold public listening sessions or forums and may solicit public comments 
1039.17 	regarding the proposed conversion transaction.
1039.18 		Subd. 4.Waiting period. (a) Subject to paragraphs (b) and (c), a nonprofit health 
1039.19 	coverage entity must not enter into a conversion transaction until 60 days after the nonprofit 
1039.20 	health coverage entity has given written notice as required in subdivision 1.
1039.21 	(b) The attorney general may waive all or part of the waiting period or may extend the 
1039.22 	waiting period for an additional 60 days by notifying the nonprofit health coverage entity 
1039.23 	of the extension in writing.
1039.24 	(c) The time periods specified in this subdivision shall be suspended while an 
1039.25 	investigation into the conversion transaction is pending or while a request from the attorney 
1039.26 	general for additional information is outstanding.
1039.27 		Subd. 5.Funds restricted for a particular purpose. Nothing in this section relieves a 
1039.28 	nonprofit health coverage entity from complying with requirements for funds that are 
1039.29 	restricted for a particular purpose. Funds restricted for a particular purpose must continue 
1039.30 	to be used in accordance with the purpose for which they were restricted under sections 
1039.31 	317A.671 and 501B.31. A nonprofit health coverage entity may not convert, transfer, or 
1040.1 	sell assets if the transaction would result in the use of the assets conflicting with their 
1040.2 	restricted purpose.

1040.3 	EFFECTIVE DATE. This section is effective July 1, 2025.

1040.4 	Sec. 50. [145D.34] ENFORCEMENT AND REMEDIES.
1040.5 		Subdivision 1.Investigation. The attorney general has the powers in section 8.31. 
1040.6 	Nothing in this subdivision limits the powers, remedies, or responsibilities of the attorney 
1040.7 	general under this chapter; chapter 8, 309, 317A, or 501B; or any other chapter. For purposes 
1040.8 	of this section, an approval by the commissioner for regulatory purposes does not impair 
1040.9 	or inform the attorney general's authority.
1040.10 		Subd. 2.Enforcement and penalties. (a) The attorney general may bring an action in 
1040.11 	district court to enjoin or unwind a conversion transaction or seek other equitable relief 
1040.12 	necessary to protect the public interest if:
1040.13 	(1) a nonprofit health coverage entity or conversion transaction violates sections 145D.30 
1040.14 	to 145D.32; or
1040.15 	(2) the conversion transaction is contrary to the public interest.
1040.16 	In seeking injunctive relief, the attorney general must not be required to establish irreparable 
1040.17 	harm but must instead establish that a violation of sections 145D.30 to 145D.32 occurred 
1040.18 	or that the requested order promotes the public interest.
1040.19 	(b) Factors informing whether a conversion transaction is contrary to the public interest 
1040.20 	include but are not limited to whether:
1040.21 	(1) the conversion transaction shall result in increased health care costs for patients; and
1040.22 	(2) the conversion transaction shall adversely impact provider cost trends and containment 
1040.23 	of total health care spending.
1040.24 	(c) The attorney general may enforce sections 145D.30 to 145D.32 under section 8.31.
1040.25 	(d) Failure of the entities involved in a conversion transaction to provide timely 
1040.26 	information as required by the attorney general or the commissioner shall be an independent 
1040.27 	and sufficient ground for a court to enjoin or unwind the transaction or provide other equitable 
1040.28 	relief, provided the attorney general notifies the entities of the inadequacy of the information 
1040.29 	provided and provides the entities with a reasonable opportunity to remedy the inadequacy.
1040.30 	(e) An officer, director, or other executive found to have violated sections 145D.30 to 
1040.31 	145D.32 shall be subject to a civil penalty of up to $100,000 for each violation. A corporation 
1041.1 	or other entity which is a party to or materially participated in a conversion transaction 
1041.2 	found to have violated sections 145D.30 to 145D.32 shall be subject to a civil penalty of 
1041.3 	up to $1,000,000. A court may also award reasonable attorney fees and costs of investigation 
1041.4 	and litigation.
1041.5 		Subd. 3.Commissioner of health; data and research. The commissioner of health 
1041.6 	must provide the attorney general, upon request, with data and research on broader market 
1041.7 	trends, impacts on prices and outcomes, public health and population health considerations, 
1041.8 	and health care access, for the attorney general to use when evaluating whether a conversion 
1041.9 	transaction is contrary to public interest. The commissioner of health may share with the 
1041.10 	attorney general, according to section 13.05, subdivision 9, any not public data, as defined 
1041.11 	in section 13.02, subdivision 8a, held by the commissioner to aid in the investigation and 
1041.12 	review of the conversion transaction, and the attorney general must maintain this data with 
1041.13 	the same classification according to section 13.03, subdivision 4, paragraph (c).
1041.14 		Subd. 4.Failure to take action. Failure by the attorney general to take action with 
1041.15 	respect to a conversion transaction under this section does not constitute approval of the 
1041.16 	conversion transaction or waiver, nor shall failure prevent the attorney general from taking 
1041.17 	action in the same, similar, or subsequent circumstances.

1041.18 	EFFECTIVE DATE. This section is effective July 1, 2025.

1041.19 	Sec. 51. [145D.35] DATA PRACTICES.
1041.20 	Data provided by a nonprofit health coverage entity to the commissioner or the attorney 
1041.21 	general under sections 145D.30 to 145D.32 are, for data on individuals, confidential data 
1041.22 	on individuals as defined under section 13.02, subdivision 3, and, for data not on individuals, 
1041.23 	protected nonpublic data as defined under section 13.02, subdivision 13. The provided data 
1041.24 	are not subject to subpoena and shall not be subject to discovery or admissible in evidence 
1041.25 	in any private civil action. The attorney general or the commissioner may provide access 
1041.26 	to any data classified as confidential or protected nonpublic under this section to any law 
1041.27 	enforcement agency if the attorney general or commissioner determines that the access aids 
1041.28 	the law enforcement process. This section shall not be construed to limit the attorney general's 
1041.29 	authority to use the data in furtherance of any legal action brought according to section 
1041.30 	145D.34.

1041.31 	EFFECTIVE DATE. This section is effective July 1, 2025.

1042.1 	Sec. 52. [145D.36] COMMISSIONER OF HEALTH; REPORTS AND ANALYSIS.
1042.2 	Notwithstanding any law to the contrary, the commissioner of health may use data or 
1042.3 	information submitted under sections 60A.135 to 60A.137, 60A.17, 60D.18, 60D.20, 
1042.4 	62D.221, and 145D.32 to conduct analyses of the aggregate impact of transactions within 
1042.5 	nonprofit health coverage entities and organizations which include nonprofit health coverage 
1042.6 	entities or their affiliates on access to or the cost of health care services, health care market 
1042.7 	consolidation, and health care quality. The commissioner of health must issue periodic 
1042.8 	public reports on the number and types of conversion transactions subject to sections 145D.30 
1042.9 	to 145D.35 and on the aggregate impact of conversion transactions on health care costs, 
1042.10 	quality, and competition in Minnesota.

1042.11 	EFFECTIVE DATE. This section is effective July 1, 2025.

1042.12 	Sec. 53. [145D.37] RELATION TO OTHER LAW.
1042.13 	(a) Sections 145D.30 to 145D.36 are in addition to and do not affect or limit any power, 
1042.14 	remedy, or responsibility of a health maintenance organization, a service plan corporation, 
1042.15 	the attorney general, the commissioner of health, or the commissioner of commerce under 
1042.16 	this chapter; chapter 8, 62C, 62D, 309, 317A, or 501B; or other law.
1042.17 	(b) Nothing in sections 145D.03 to 145D.36 authorizes a nonprofit health coverage entity 
1042.18 	to enter into a conversion transaction not otherwise permitted under chapter 317A or 501B 
1042.19 	or other law.

1042.20 	EFFECTIVE DATE. This section is effective July 1, 2025.

1042.21 	Sec. 54. [214.41] PHYSICIAN WELLNESS PROGRAM.
1042.22 		Subdivision 1.Definition. For the purposes of this section, "physician wellness program" 
1042.23 	means a program of evaluation, counseling, or other modality to address an issue related to 
1042.24 	career fatigue or wellness related to work stress for physicians licensed under chapter 147 
1042.25 	that is administered by a statewide association that is exempt from taxation under United 
1042.26 	States Code, title 26, section 501(c)(6), and that primarily represents physicians and 
1042.27 	osteopaths of multiple specialties. Physician wellness program does not include the provision 
1042.28 	of services intended to monitor for impairment under the authority of section 214.31.
1042.29 		Subd. 2.Confidentiality. Any record of a person's participation in a physician wellness 
1042.30 	program is confidential and not subject to discovery, subpoena, or a reporting requirement 
1042.31 	to the applicable board, unless the person voluntarily provides for written release of the 
1043.1 	information or the disclosure is required to meet the licensee's obligation to report according 
1043.2 	to section 147.111.
1043.3 		Subd. 3.Civil liability. Any person, agency, institution, facility, or organization employed 
1043.4 	by, contracting with, or operating a physician wellness program is immune from civil liability 
1043.5 	for any action related to their duties in connection with a physician wellness program when 
1043.6 	acting in good faith.

1043.7 	Sec. 55. Minnesota Statutes 2022, section 256B.035, is amended to read:
1043.8 	256B.035 MANAGED CARE.
1043.9 	The commissioner of human services may contract with public or private entities or 
1043.10 	operate a preferred provider program to deliver health care services to medical assistance 
1043.11 	and MinnesotaCare program recipients. The commissioner may enter into risk-based and 
1043.12 	non-risk-based contracts. The commissioner must not enter into a contract with a health 
1043.13 	maintenance organization, as defined in section 62D.02, which is not a nonprofit corporation 
1043.14 	organized under chapter 317A or a local governmental unit, as defined in section 62D.02. 
1043.15 	Contracts may be for the full range of health services, or a portion thereof, for medical 
1043.16 	assistance populations to determine the effectiveness of various provider reimbursement 
1043.17 	and care delivery mechanisms. The commissioner may seek necessary federal waivers and 
1043.18 	implement projects when approval of the waivers is obtained from the Centers for Medicare 
1043.19 	and Medicaid Services of the United States Department of Health and Human Services.

1043.20 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to managed 
1043.21 	care contracts under medical assistance and MinnesotaCare that take effect on or after that 
1043.22 	date.

1043.23 	Sec. 56. Minnesota Statutes 2023 Supplement, section 256B.0625, subdivision 3a, is 
1043.24 	amended to read:
1043.25 		Subd. 3a.Gender-affirming services care. Medical assistance covers gender-affirming 
1043.26 	servicescare, as defined in section 62Q.585.

1043.27 	EFFECTIVE DATE. This section is effective January 1, 2025.

1043.28 	Sec. 57. Minnesota Statutes 2022, section 256B.0625, subdivision 12, is amended to read:
1043.29 		Subd. 12.Eyeglasses, dentures, and prosthetic and orthotic devices. (a) Medical 
1043.30 	assistance covers eyeglasses, dentures, and prosthetic and orthotic devices if prescribed by 
1043.31 	a licensed practitioner.
1044.1 	(b) For purposes of prescribing prosthetic and orthotic devices, "licensed practitioner" 
1044.2 	includes a physician, an advanced practice registered nurse, a physician assistant, or a 
1044.3 	podiatrist.

1044.4 	EFFECTIVE DATE. This section is effective January 1, 2025, or upon federal approval, 
1044.5 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
1044.6 	when federal approval is obtained.

1044.7 	Sec. 58. Minnesota Statutes 2023 Supplement, section 256B.0625, subdivision 16, is 
1044.8 	amended to read:
1044.9 		Subd. 16.Abortion services. Medical assistance covers abortion services determined 
1044.10 	to be medically necessary by the treating provider and delivered in accordance with all 
1044.11 	applicable Minnesota laws abortions and abortion-related services, including preabortion 
1044.12 	services and follow-up services.

1044.13 	EFFECTIVE DATE. This section is effective January 1, 2025, or upon federal approval, 
1044.14 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
1044.15 	when federal approval is obtained.

1044.16 	Sec. 59. Minnesota Statutes 2022, section 256B.0625, subdivision 32, is amended to read:
1044.17 		Subd. 32.Nutritional products. Medical assistance covers nutritional products needed 
1044.18 	for nutritional supplementation because solid food or nutrients thereof cannot be properly 
1044.19 	absorbed by the body or needed for treatment of phenylketonuria, hyperlysinemia, maple 
1044.20 	syrup urine disease, a combined allergy to human milk, cow's milk, and soy formula, or 
1044.21 	any other childhood or adult diseases, conditions, or disorders identified by the commissioner 
1044.22 	as requiring a similarly necessary nutritional product. Medical assistance covers amino 
1044.23 	acid-based elemental formulas in the same manner as is required under section 62Q.531. 
1044.24 	Nutritional products needed for the treatment of a combined allergy to human milk, cow's 
1044.25 	milk, and soy formula require prior authorization. Separate payment shall not be made for 
1044.26 	nutritional products for residents of long-term care facilities. Payment for dietary 
1044.27 	requirements is a component of the per diem rate paid to these facilities.

1044.28 	EFFECTIVE DATE. This section is effective January 1, 2025.

1044.29 	Sec. 60. Minnesota Statutes 2022, section 256B.0625, is amended by adding a subdivision 
1044.30 	to read:
1044.31 		Subd. 72.Orthotic and prosthetic devices. Medical assistance covers orthotic and 
1044.32 	prosthetic devices, supplies, and services according to section 256B.066.

1045.1 	EFFECTIVE DATE. This section is effective January 1, 2025, or upon federal approval, 
1045.2 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
1045.3 	when federal approval is obtained.

1045.4 	Sec. 61. Minnesota Statutes 2022, section 256B.0625, is amended by adding a subdivision 
1045.5 	to read:
1045.6 		Subd. 73.Rapid whole genome sequencing. Medical assistance covers rapid whole 
1045.7 	genome sequencing (rWGS) testing. Coverage and eligibility for rWGS testing, and the use 
1045.8 	of genetic data, must meet the requirements specified in section 62A.3098, subdivisions 1 
1045.9 	to 3 and 6.

1045.10 	EFFECTIVE DATE. This section is effective January 1, 2025.

1045.11 	Sec. 62. Minnesota Statutes 2022, section 256B.0625, is amended by adding a subdivision 
1045.12 	to read:
1045.13 		Subd. 74.Intermittent catheters. Medical assistance covers intermittent urinary catheters 
1045.14 	and insertion supplies if intermittent catheterization is recommended by the enrollee's health 
1045.15 	care provider. Medical assistance must meet the requirements that would otherwise apply 
1045.16 	to a health plan under section 62Q.666.

1045.17 	Sec. 63. Minnesota Statutes 2022, section 256B.0625, is amended by adding a subdivision 
1045.18 	to read:
1045.19 		Subd. 75.Scalp hair prostheses. Medical assistance covers scalp hair prostheses and 
1045.20 	all equipment and accessories necessary for their regular use under the conditions and in 
1045.21 	compliance with the requirements specified in section 62A.28, except that the limitation on 
1045.22 	coverage required per benefit year set forth in section 62A.28, subdivision 2, paragraph (c), 
1045.23 	does not apply.

1045.24 	EFFECTIVE DATE. This section is effective January 1, 2025.

1045.25 	Sec. 64. Minnesota Statutes 2022, section 256B.0625, is amended by adding a subdivision 
1045.26 	to read:
1045.27 		Subd. 76.Transfer of mothers and newborns. Medical assistance covers the transfer 
1045.28 	of mothers or newborns between medical facilities. Medical assistance must meet the same 
1045.29 	requirements that would otherwise apply to a health plan under section 62A.0411.

1045.30 	EFFECTIVE DATE. This section is effective January 1, 2025.

1046.1 	Sec. 65. [256B.066] ORTHOTIC AND PROSTHETIC DEVICES, SUPPLIES, AND 
1046.2 	SERVICES.
1046.3 		Subdivision 1.Definitions.  All terms used in this section have the meanings given them 
1046.4 	in section 62Q.665, subdivision 1.
1046.5 		Subd. 2.Coverage requirements.  (a) Medical assistance covers orthotic and prosthetic 
1046.6 	devices, supplies, and services:
1046.7 	(1) furnished under an order by a prescribing physician or licensed health care prescriber 
1046.8 	who has authority in Minnesota to prescribe orthoses and prostheses. Coverage for orthotic 
1046.9 	and prosthetic devices, supplies, accessories, and services under this clause includes those 
1046.10 	devices or device systems, supplies, accessories, and services that are customized to the 
1046.11 	enrollee's needs;
1046.12 	(2) determined by the enrollee's provider to be the most appropriate model that meets 
1046.13 	the medical needs of the enrollee for purposes of performing physical activities, as applicable, 
1046.14 	including but not limited to running, biking, and swimming, and maximizing the enrollee's 
1046.15 	limb function; or
1046.16 	(3) for showering or bathing.
1046.17 	(b) The coverage set forth in paragraph (a) includes the repair and replacement of those 
1046.18 	orthotic and prosthetic devices, supplies, and services described therein.
1046.19 	(c) Coverage of a prosthetic or orthotic benefit must not be denied for an individual with 
1046.20 	limb loss or absence that would otherwise be covered for a nondisabled person seeking 
1046.21 	medical or surgical intervention to restore or maintain the ability to perform the same 
1046.22 	physical activity.
1046.23 	(d) If coverage for prosthetic or custom orthotic devices is provided, payment must be 
1046.24 	made for the replacement of a prosthetic or custom orthotic device or for the replacement 
1046.25 	of any part of the devices, without regard to useful lifetime restrictions, if an ordering health 
1046.26 	care provider determines that the provision of a replacement device, or a replacement part 
1046.27 	of a device, is necessary because:
1046.28 	(1) of a change in the physiological condition of the enrollee;
1046.29 	(2) of an irreparable change in the condition of the device or in a part of the device; or
1046.30 	(3) the condition of the device, or the part of the device, requires repairs and the cost of 
1046.31 	the repairs would be more than 60 percent of the cost of a replacement device or of the part 
1046.32 	being replaced.
1047.1 		Subd. 3.Restrictions on coverage. (a) Prior authorization may be required for orthotic 
1047.2 	and prosthetic devices, supplies, and services.
1047.3 	(b) A utilization review for a request for coverage of prosthetic or orthotic benefits must 
1047.4 	apply the most recent version of evidence-based treatment and fit criteria as recognized by 
1047.5 	relevant clinical specialists.
1047.6 	(c) Utilization review determinations must be rendered in a nondiscriminatory manner 
1047.7 	and must not deny coverage for habilitative or rehabilitative benefits, including prosthetics 
1047.8 	or orthotics, solely on the basis of an enrollee's actual or perceived disability.
1047.9 	(d) Evidence of coverage and any benefit denial letters must include language describing 
1047.10 	an enrollee's rights pursuant to paragraphs (b) and (c).
1047.11 	(e) Confirmation from a prescribing health care provider may be required if the prosthetic 
1047.12 	or custom orthotic device or part being replaced is less than three years old.
1047.13 		Subd. 4.Managed care plan access to care.  (a) Managed care plans and county-based 
1047.14 	purchasing plans subject to this section must ensure access to medically necessary clinical 
1047.15 	care and to prosthetic and custom orthotic devices and technology from at least two distinct 
1047.16 	prosthetic and custom orthotic providers in the plan's provider network located in Minnesota.
1047.17 	(b) In the event that medically necessary covered orthotics and prosthetics are not 
1047.18 	available from an in-network provider, the plan must provide processes to refer an enrollee 
1047.19 	to an out-of-network provider and must fully reimburse the out-of-network provider at a 
1047.20 	mutually agreed upon rate less enrollee cost sharing determined on an in-network basis.

1047.21 	EFFECTIVE DATE. This section is effective January 1, 2025, or upon federal approval, 
1047.22 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
1047.23 	when federal approval is obtained.

1047.24 	Sec. 66. Minnesota Statutes 2022, section 256B.69, subdivision 2, is amended to read:
1047.25 		Subd. 2.Definitions. For the purposes of this section, the following terms have the 
1047.26 	meanings given.
1047.27 	(a) "Commissioner" means the commissioner of human services. For the remainder of 
1047.28 	this section, the commissioner's responsibilities for methods and policies for implementing 
1047.29 	the project will be proposed by the project advisory committees and approved by the 
1047.30 	commissioner.
1047.31 	(b) "Demonstration provider" means a nonprofit health maintenance organization, 
1047.32 	community integrated service network, or accountable provider network authorized and 
1048.1 	operating under chapter 62D, 62N, or 62T that participates in the demonstration project 
1048.2 	according to criteria, standards, methods, and other requirements established for the project 
1048.3 	and approved by the commissioner. For purposes of this section, a county board, or group 
1048.4 	of county boards operating under a joint powers agreement, is considered a demonstration 
1048.5 	provider if the county or group of county boards meets the requirements of section 256B.692.
1048.6 	(c) "Eligible individuals" means those persons eligible for medical assistance benefits 
1048.7 	as defined in sections 256B.055, 256B.056, and 256B.06.
1048.8 	(d) "Limitation of choice" means suspending freedom of choice while allowing eligible 
1048.9 	individuals to choose among the demonstration providers.

1048.10 	EFFECTIVE DATE. This section is effective January 1, 2025.

1048.11 	Sec. 67. Minnesota Statutes 2022, section 256L.12, subdivision 7, is amended to read:
1048.12 		Subd. 7.Managed care plan vendor requirements. (a) The following requirements 
1048.13 	apply to all counties or vendors who contract with the Department of Human Services to 
1048.14 	serve MinnesotaCare recipients. Managed care plan contractors:
1048.15 	(1) shall authorize and arrange for the provision of the full range of services listed in 
1048.16 	section 256L.03 in order to ensure appropriate health care is delivered to enrollees;
1048.17 	(2) shall accept the prospective, per capita payment or other contractually defined payment 
1048.18 	from the commissioner in return for the provision and coordination of covered health care 
1048.19 	services for eligible individuals enrolled in the program;
1048.20 	(3) may contract with other health care and social service practitioners to provide services 
1048.21 	to enrollees;
1048.22 	(4) shall provide for an enrollee grievance process as required by the commissioner and 
1048.23 	set forth in the contract with the department;
1048.24 	(5) shall retain all revenue from enrollee co-payments;
1048.25 	(6) shall accept all eligible MinnesotaCare enrollees, without regard to health status or 
1048.26 	previous utilization of health services;
1048.27 	(7) shall demonstrate capacity to accept financial risk according to requirements specified 
1048.28 	in the contract with the department. A health maintenance organization licensed under 
1048.29 	chapter 62D, or a nonprofit health plan licensed under chapter 62C, is not required to 
1048.30 	demonstrate financial risk capacity, beyond that which is required to comply with chapters 
1048.31 	62C and 62D; and
1049.1 	(8) shall submit information as required by the commissioner, including data required 
1049.2 	for assessing enrollee satisfaction, quality of care, cost, and utilization of services.
1049.3 	(b) A health maintenance organization must be a nonprofit corporation organized under 
1049.4 	chapter 317A to serve as a managed care contractor under this section and section 256L.121.

1049.5 	EFFECTIVE DATE. This section is effective January 1, 2025.

1049.6 	Sec. 68. Minnesota Statutes 2022, section 317A.811, subdivision 1, is amended to read:
1049.7 		Subdivision 1.When required. (a) Except as provided in subdivision 6, the following 
1049.8 	corporations shall notify the attorney general of their intent to dissolve, merge, consolidate, 
1049.9 	or convert, or to transfer all or substantially all of their assets:
1049.10 	(1) a corporation that holds assets for a charitable purpose as defined in section 501B.35, 
1049.11 	subdivision 2; or
1049.12 	(2) a corporation that is exempt under section 501(c)(3) of the Internal Revenue Code 
1049.13 	of 1986, or any successor section.; or
1049.14 	(3) effective July 1, 2025, a nonprofit health coverage entity as defined in section 
1049.15 	145D.30.
1049.16 	(b) The notice must include:
1049.17 	(1) the purpose of the corporation that is giving the notice;
1049.18 	(2) a list of assets owned or held by the corporation for charitable purposes;
1049.19 	(3) a description of restricted assets and purposes for which the assets were received;
1049.20 	(4) a description of debts, obligations, and liabilities of the corporation;
1049.21 	(5) a description of tangible assets being converted to cash and the manner in which 
1049.22 	they will be sold;
1049.23 	(6) anticipated expenses of the transaction, including attorney fees;
1049.24 	(7) a list of persons to whom assets will be transferred, if known, or the name of the 
1049.25 	converted organization;
1049.26 	(8) the purposes of persons receiving the assets or of the converted organization; and
1049.27 	(9) the terms, conditions, or restrictions, if any, to be imposed on the transferred or 
1049.28 	converted assets.
1049.29 	The notice must be signed on behalf of the corporation by an authorized person.

1050.1 	Sec. 69. SUPERSEDING EFFECT.
 1050.2 	Minnesota Statutes, section 62Q.679, in this article shall supersede Minnesota Statutes, 
1050.3 	section 62Q.679, in 2024 S.F. No. 4097, article 1, section 8, if enacted.

1050.4 	Sec. 70. INITIAL REPORTS TO COMMISSIONER OF HEALTH; PRIOR 
1050.5 	AUTHORIZATIONS.
 1050.6 	Utilization review organizations must submit initial reports to the commissioner of health 
1050.7 	under Minnesota Statutes, section 62M.19, by September 1, 2025.

1050.8 	Sec. 71. REPEALER.
 1050.9 	(a) Minnesota Statutes 2022, section 62A.041, subdivision 3, is repealed.
1050.10 	(b) Minnesota Statutes 2023 Supplement, section 62Q.522, subdivisions 3 and 4, are 
1050.11 	repealed.

1050.12 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to health 
1050.13 	plans offered, sold, issued, or renewed on or after that date.

1050.14 	ARTICLE 58
1050.15 	DEPARTMENT OF HEALTH FINANCE

1050.16 	Section 1. Minnesota Statutes 2022, section 103I.621, subdivision 1, is amended to read:
1050.17 		Subdivision 1.Permit. (a) Notwithstanding any department or agency rule to the contrary, 
1050.18 	the commissioner shall issue, on request by the owner of the property and payment of the 
1050.19 	permit fee, permits for the reinjection of water by a properly constructed well into the same 
1050.20 	aquifer from which the water was drawn for the operation of a groundwater thermal exchange 
1050.21 	device.
1050.22 	(b) As a condition of the permit, an applicant must agree to allow inspection by the 
1050.23 	commissioner during regular working hours for department inspectors.
1050.24 	(c) Not more than 200 permits may be issued for small systems having maximum 
1050.25 	capacities of 20 gallons per minute or less and that are compliant with the natural resource 
1050.26 	water-use requirements under subdivision 2. The small systems are subject to inspection 
1050.27 	twice a year.
1050.28 	(d) Not more than ten 100 permits may be issued for larger systems having maximum 
1050.29 	capacities from over 20 to 50 gallons per minute and that are compliant with the natural 
1051.1 	resource water-use requirements under subdivision 2. The larger systems are subject to 
1051.2 	inspection four times a year.
1051.3 	(e) A person issued a permit must comply with this section and permit conditions deemed 
1051.4 	necessary to protect public health and safety of the groundwater for the permit to be valid. 
1051.5 	The permit conditions may include but are not limited to requirements for:
1051.6 	(1) notification to the commissioner at intervals specified in the permit conditions;
1051.7 	(2) system operation and maintenance;
1051.8 	(3) system location and construction;
1051.9 	(4) well location and construction;
1051.10 	(5) signage;
1051.11 	(6) reports of system construction, performance, operation, and maintenance;
1051.12 	(7) removal of the system upon termination of its use or system failure;
1051.13 	(8) disclosure of the system at the time of property transfer;
1051.14 	(9) obtaining approval from the commissioner prior to deviation from the approval plan 
1051.15 	and conditions;
1051.16 	(10) groundwater level monitoring; and
1051.17 	(11) groundwater quality monitoring.
1051.18 	(f) The property owner or the property owner's agent must submit to the commissioner 
1051.19 	a permit application on a form provided by the commissioner, or in a format approved by 
1051.20 	the commissioner, that provides any information necessary to protect public health and 
1051.21 	safety of the groundwater.
1051.22 	(g) A permit granted under this section is not valid if a water-use permit is required for 
1051.23 	the project and is not approved by the commissioner of natural resources.

1051.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

1051.25 	Sec. 2. Minnesota Statutes 2022, section 103I.621, subdivision 2, is amended to read:
1051.26 		Subd. 2.Water-use requirements apply. Water-use permit requirements and penalties 
1051.27 	under chapter 103F 103G and related rules adopted and enforced by the commissioner of 
1051.28 	natural resources apply to groundwater thermal exchange permit recipients. A person who 
1051.29 	violates a provision of this section is subject to enforcement or penalties for the noncomplying 
1051.30 	activity that are available to the commissioner and the Pollution Control Agency.

1052.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

1052.2 	Sec. 3. Minnesota Statutes 2023 Supplement, section 144.1501, subdivision 2, is amended 
1052.3 	to read:
1052.4 		Subd. 2.Creation of account Availability. (a) A health professional education loan 
1052.5 	forgiveness program account is established. The commissioner of health shall use money 
1052.6 	from the account to establish a appropriated for health professional education loan forgiveness 
1052.7 	program in this section:
1052.8 	(1) for medical residents, physicians, mental health professionals, and alcohol and drug 
1052.9 	counselors agreeing to practice in designated rural areas or underserved urban communities 
1052.10 	or specializing in the area of pediatric psychiatry;
1052.11 	(2) for midlevel practitioners agreeing to practice in designated rural areas or to teach 
1052.12 	at least 12 credit hours, or 720 hours per year in the nursing field in a postsecondary program 
1052.13 	at the undergraduate level or the equivalent at the graduate level;
1052.14 	(3) for nurses who agree to practice in a Minnesota nursing home; in an intermediate 
1052.15 	care facility for persons with developmental disability; in a hospital if the hospital owns 
1052.16 	and operates a Minnesota nursing home and a minimum of 50 percent of the hours worked 
1052.17 	by the nurse is in the nursing home; in an assisted living facility as defined in section 
1052.18 	144G.08, subdivision 7; or for a home care provider as defined in section 144A.43, 
1052.19 	subdivision 4; or agree to teach at least 12 credit hours, or 720 hours per year in the nursing 
1052.20 	field in a postsecondary program at the undergraduate level or the equivalent at the graduate 
1052.21 	level;
1052.22 	(4) for other health care technicians agreeing to teach at least 12 credit hours, or 720 
1052.23 	hours per year in their designated field in a postsecondary program at the undergraduate 
1052.24 	level or the equivalent at the graduate level. The commissioner, in consultation with the 
1052.25 	Healthcare Education-Industry Partnership, shall determine the health care fields where the 
1052.26 	need is the greatest, including, but not limited to, respiratory therapy, clinical laboratory 
1052.27 	technology, radiologic technology, and surgical technology;
1052.28 	(5) for pharmacists, advanced dental therapists, dental therapists, and public health nurses 
1052.29 	who agree to practice in designated rural areas;
1052.30 	(6) for dentists agreeing to deliver at least 25 percent of the dentist's yearly patient 
1052.31 	encounters to state public program enrollees or patients receiving sliding fee schedule 
1052.32 	discounts through a formal sliding fee schedule meeting the standards established by the 
1053.1 	United States Department of Health and Human Services under Code of Federal Regulations, 
1053.2 	title 42, section 51, chapter 303 51c.303; and
1053.3 	(7) for nurses employed as a hospital nurse by a nonprofit hospital and providing direct 
1053.4 	care to patients at the nonprofit hospital.
1053.5 	(b) Appropriations made to the account for health professional education loan forgiveness 
1053.6 	in this section do not cancel and are available until expended, except that at the end of each 
1053.7 	biennium, any remaining balance in the account that is not committed by contract and not 
1053.8 	needed to fulfill existing commitments shall cancel to the fund.

1053.9 	Sec. 4. Minnesota Statutes 2022, section 144.1501, subdivision 5, is amended to read:
1053.10 		Subd. 5.Penalty for nonfulfillment. If a participant does not fulfill the required 
1053.11 	minimum commitment of service according to subdivision 3, the commissioner of health 
1053.12 	shall collect from the participant the total amount paid to the participant under the loan 
1053.13 	forgiveness program plus interest at a rate established according to section 270C.40. The 
1053.14 	commissioner shall deposit the money collected in the health care access fund to be credited 
1053.15 	to a dedicated account in the special revenue fund. The balance of the account is appropriated 
1053.16 	annually to the commissioner for the health professional education loan forgiveness program 
1053.17 	account established in subdivision 2. The commissioner shall allow waivers of all or part 
1053.18 	of the money owed the commissioner as a result of a nonfulfillment penalty if emergency 
1053.19 	circumstances prevented fulfillment of the minimum service commitment.

1053.20 	Sec. 5. Minnesota Statutes 2022, section 144.555, subdivision 1a, is amended to read:
1053.21 		Subd. 1a.Notice of closing, curtailing operations, relocating services, or ceasing to 
1053.22 	offer certain services; hospitals. (a) The controlling persons of a hospital licensed under 
1053.23 	sections 144.50 to 144.56 or a hospital campus must notify the commissioner of health and,
1053.24 	the public, and others at least 120 182 days before the hospital or hospital campus voluntarily 
1053.25 	plans to implement one of the following scheduled actions listed in paragraph (b), unless 
1053.26 	the controlling persons can demonstrate to the commissioner that meeting the advanced 
1053.27 	notice requirement is not feasible and the commissioner approves a shorter advanced notice.
1053.28 	(b) The following scheduled actions require advanced notice under paragraph (a):
1053.29 	(1) cease ceasing operations;
1053.30 	(2) curtail curtailing operations to the extent that patients must be relocated;
1053.31 	(3) relocate relocating the provision of health services to another hospital or another 
1053.32 	hospital campus; or
1054.1 	(4) cease offering ceasing to offer maternity care and newborn care services, intensive 
1054.2 	care unit services, inpatient mental health services, or inpatient substance use disorder 
1054.3 	treatment services.
1054.4 	(c) A notice required under this subdivision must comply with the requirements in 
1054.5 	subdivision 1d.
1054.6 	(b) (d) The commissioner shall cooperate with the controlling persons and advise them 
1054.7 	about relocating the patients.

1054.8 	Sec. 6. Minnesota Statutes 2022, section 144.555, subdivision 1b, is amended to read:
1054.9 		Subd. 1b.Public hearing. Within 45 30 days after receiving notice under subdivision 
1054.10 	1a, the commissioner shall conduct a public hearing on the scheduled cessation of operations, 
1054.11 	curtailment of operations, relocation of health services, or cessation in offering health 
1054.12 	services. The commissioner must provide adequate public notice of the hearing in a time 
1054.13 	and manner determined by the commissioner. The controlling persons of the hospital or 
1054.14 	hospital campus must participate in the public hearing. The public hearing must be held at 
1054.15 	a location that is within ten miles of the hospital or hospital campus or with the 
1054.16 	commissioner's approval as close as is practicable, and that is provided or arranged by the 
1054.17 	hospital or hospital campus. Video conferencing technology must be used to allow members 
1054.18 	of the public to view and participate in the hearing. The public hearing must include:
1054.19 	(1) an explanation by the controlling persons of the reasons for ceasing or curtailing 
1054.20 	operations, relocating health services, or ceasing to offer any of the listed health services;
1054.21 	(2) a description of the actions that controlling persons will take to ensure that residents 
1054.22 	in the hospital's or campus's service area have continued access to the health services being 
1054.23 	eliminated, curtailed, or relocated;
1054.24 	(3) an opportunity for public testimony on the scheduled cessation or curtailment of 
1054.25 	operations, relocation of health services, or cessation in offering any of the listed health 
1054.26 	services, and on the hospital's or campus's plan to ensure continued access to those health 
1054.27 	services being eliminated, curtailed, or relocated; and
1054.28 	(4) an opportunity for the controlling persons to respond to questions from interested 
1054.29 	persons.

1055.1 	Sec. 7. Minnesota Statutes 2022, section 144.555, is amended by adding a subdivision to 
1055.2 	read:
1055.3 		Subd. 1d.Methods of providing notice; content of notice. (a) A notice required under 
1055.4 	subdivision 1a must be provided to patients, hospital personnel, the public, local units of 
1055.5 	government, and the commissioner of health using at least the following methods:
1055.6 	(1) posting a notice of the proposed cessation of operations, curtailment, relocation of 
1055.7 	health services, or cessation in offering health services at the main public entrance of the 
1055.8 	hospital or hospital campus;
1055.9 	(2) providing written notice to the commissioner of health, to the city council in the city 
1055.10 	where the hospital or hospital campus is located, and to the county board in the county 
1055.11 	where the hospital or hospital campus is located;
1055.12 	(3) providing written notice to the local health department as defined in section 145A.02, 
1055.13 	subdivision 8b, for the community where the hospital or hospital campus is located;
1055.14 	(4) providing notice to the public through a written public announcement which must 
1055.15 	be distributed to local media outlets;
1055.16 	(5) providing written notice to existing patients of the hospital or hospital campus; and
1055.17 	(6) notifying all personnel currently employed in the unit, hospital, or hospital campus 
1055.18 	impacted by the proposed cessation, curtailment, or relocation.
1055.19 	(b) A notice required under subdivision 1a must include:
1055.20 	(1) a description of the proposed cessation of operations, curtailment, relocation of health 
1055.21 	services, or cessation in offering health services. The description must include:
1055.22 	(i) the number of beds, if any, that will be eliminated, repurposed, reassigned, or otherwise 
1055.23 	reconfigured to serve populations or patients other than those currently served;
1055.24 	(ii) the current number of beds in the impacted unit, hospital, or hospital campus, and 
1055.25 	the number of beds in the impacted unit, hospital, or hospital campus after the proposed 
1055.26 	cessation, curtailment, or relocation takes place;
1055.27 	(iii) the number of existing patients who will be impacted by the proposed cessation, 
1055.28 	curtailment, or relocation;
1055.29 	(iv) any decrease in personnel, or relocation of personnel to a different unit, hospital, or 
1055.30 	hospital campus, caused by the proposed cessation, curtailment, or relocation;
1056.1 	(v) a description of the health services provided by the unit, hospital, or hospital campus 
1056.2 	impacted by the proposed cessation, curtailment, or relocation; and
1056.3 	(vi) identification of the three nearest available health care facilities where patients may 
1056.4 	obtain the health services provided by the unit, hospital, or hospital campus impacted by 
1056.5 	the proposed cessation, curtailment, or relocation, and any potential barriers to seamlessly 
1056.6 	transition patients to receive services at one of these facilities. If the unit, hospital, or hospital 
1056.7 	campus impacted by the proposed cessation, curtailment, or relocation serves medical 
1056.8 	assistance or Medicare enrollees, the information required under this item must specify 
1056.9 	whether any of the three nearest available facilities serves medical assistance or Medicare 
1056.10 	enrollees; and
1056.11 	(2) a telephone number, email address, and address for each of the following, to which 
1056.12 	interested parties may offer comments on the proposed cessation, curtailment, or relocation:
1056.13 	(i) the hospital or hospital campus; and
1056.14 	(ii) the parent entity, if any, or the entity under contract, if any, that acts as the corporate 
1056.15 	administrator of the hospital or hospital campus.

1056.16 	Sec. 8. Minnesota Statutes 2022, section 144.555, subdivision 2, is amended to read:
1056.17 		Subd. 2.Penalty; facilities other than hospitals. Failure to notify the commissioner 
1056.18 	under subdivision 1, 1a, or 1c or failure to participate in a public hearing under subdivision 
1056.19 	1b may result in issuance of a correction order under section 144.653, subdivision 5.

1056.20 	Sec. 9. Minnesota Statutes 2022, section 144.555, is amended by adding a subdivision to 
1056.21 	read:
1056.22 		Subd. 3.Penalties; hospitals. (a) Failure to participate in a public hearing under 
1056.23 	subdivision 1b or failure to notify the commissioner under subdivision 1c may result in 
1056.24 	issuance of a correction order under section 144.653, subdivision 5.
1056.25 	(b) Notwithstanding any law to the contrary, the commissioner must impose on the 
1056.26 	controlling persons of a hospital or hospital campus a fine of $20,000 for each failure to 
1056.27 	provide notice to an individual or entity or at a location required under subdivision 1d, 
1056.28 	paragraph (a). The cumulative fines imposed under this paragraph must not exceed $60,000 
1056.29 	for any scheduled action requiring notice under subdivision 1a. The commissioner is not 
1056.30 	required to issue a correction order before imposing a fine under this paragraph. Section 
1056.31 	144.653, subdivision 8, applies to fines imposed under this paragraph.

1057.1 	Sec. 10. [144.556] RIGHT OF FIRST REFUSAL; SALE OF HOSPITAL OR 
1057.2 	HOSPITAL CAMPUS.
1057.3 	(a) The controlling persons of a hospital licensed under sections 144.50 to 144.56 or a 
1057.4 	hospital campus must not sell or convey the hospital or hospital campus, offer to sell or 
1057.5 	convey the hospital or hospital campus to a person other than a local unit of government 
1057.6 	listed in this paragraph, or voluntarily cease operations of the hospital or hospital campus 
1057.7 	unless the controlling persons have first made a good faith offer to sell or convey the hospital 
1057.8 	or hospital campus to the home rule charter or statutory city, county, town, or hospital 
1057.9 	district in which the hospital or hospital campus is located.
1057.10 	(b) The offer to sell or convey the hospital or hospital campus to a local unit of 
1057.11 	government under paragraph (a) must be at a price that does not exceed the current fair 
1057.12 	market value of the hospital or hospital campus. A party to whom an offer is made under 
1057.13 	paragraph (a) must accept or decline the offer within 60 days of receipt. If the party to whom 
1057.14 	the offer is made fails to respond within 60 days of receipt, the offer is deemed declined.

1057.15 	Sec. 11. Minnesota Statutes 2022, section 144A.61, subdivision 3a, is amended to read:
1057.16 		Subd. 3a.Competency evaluation program. (a) The commissioner of health shall 
1057.17 	approve the competency evaluation program.
1057.18 	(b) A competency evaluation must be administered to persons who desire to be listed 
1057.19 	in the nursing assistant registry. The tests may only be administered by technical colleges, 
1057.20 	community colleges, or other organizations approved by the Department of Health
1057.21 	commissioner of health. The commissioner must ensure any written portions of the 
1057.22 	competency evaluation are available in languages other than English that are commonly 
1057.23 	spoken by persons who desire to be listed in the nursing assistant registry. The commissioner 
1057.24 	may consult with the state demographer or the commissioner of employment and economic 
1057.25 	development when identifying languages that are commonly spoken by persons who desire 
1057.26 	to be listed in the nursing assistant registry.
1057.27 	(c) The commissioner of health shall approve a nursing assistant for the registry without 
1057.28 	requiring a competency evaluation if the nursing assistant is in good standing on a nursing 
1057.29 	assistant registry in another state.

1057.30 	EFFECTIVE DATE. This section is effective January 1, 2025.

1058.1 	Sec. 12. Minnesota Statutes 2022, section 144A.70, subdivision 3, is amended to read:
1058.2 		Subd. 3.Controlling person. "Controlling person" means a business entity or entities, 
1058.3 	officer, program administrator, or director, whose responsibilities include the direction of 
1058.4 	the management or policies of a supplemental nursing services agency the management and 
1058.5 	decision-making authority to establish or control business policy and all other policies of a 
1058.6 	supplemental nursing services agency. Controlling person also means an individual who, 
1058.7 	directly or indirectly, beneficially owns an interest in a corporation, partnership, or other 
1058.8 	business association that is a controlling person.

1058.9 	Sec. 13. Minnesota Statutes 2022, section 144A.70, subdivision 5, is amended to read:
1058.10 		Subd. 5.Person. "Person" includes an individual, firm, corporation, partnership, limited 
1058.11 	liability company, or association.

1058.12 	Sec. 14. Minnesota Statutes 2022, section 144A.70, subdivision 6, is amended to read:
1058.13 		Subd. 6.Supplemental nursing services agency. "Supplemental nursing services 
1058.14 	agency" means a person, firm, corporation, partnership, limited liability company, or 
1058.15 	association engaged for hire in the business of providing or procuring temporary employment 
1058.16 	in health care facilities for nurses, nursing assistants, nurse aides, and orderlies. Supplemental 
1058.17 	nursing services agency does not include an individual who only engages in providing the 
1058.18 	individual's services on a temporary basis to health care facilities. Supplemental nursing 
1058.19 	services agency does not include a professional home care agency licensed under section 
1058.20 	144A.471 that only provides staff to other home care providers.

1058.21 	Sec. 15. Minnesota Statutes 2022, section 144A.70, subdivision 7, is amended to read:
1058.22 		Subd. 7.Oversight. The commissioner is responsible for the oversight of supplemental 
1058.23 	nursing services agencies through annual semiannual unannounced surveys and follow-up 
1058.24 	surveys, complaint investigations under sections 144A.51 to 144A.53, and other actions 
1058.25 	necessary to ensure compliance with sections 144A.70 to 144A.74.

1058.26 	Sec. 16. Minnesota Statutes 2022, section 144A.71, subdivision 2, is amended to read:
1058.27 		Subd. 2.Application information and fee. The commissioner shall establish forms and 
1058.28 	procedures for processing each supplemental nursing services agency registration application. 
1058.29 	An application for a supplemental nursing services agency registration must include at least 
1058.30 	the following:
1059.1 	(1) the names and addresses of the owner or owners all owners and controlling persons
1059.2 	of the supplemental nursing services agency;
1059.3 	(2) if the owner is a corporation, copies of its articles of incorporation and current bylaws, 
1059.4 	together with the names and addresses of its officers and directors;
1059.5 	(3) satisfactory proof of compliance with section 144A.72, subdivision 1, clauses (5) to 
1059.6 	(7) if the owner is a limited liability company, copies of its articles of organization and 
1059.7 	operating agreement, together with the names and addresses of its officers and directors;
1059.8 	(4) documentation that the supplemental nursing services agency has medical malpractice 
1059.9 	insurance to insure against the loss, damage, or expense of a claim arising out of the death 
1059.10 	or injury of any person as the result of negligence or malpractice in the provision of health 
1059.11 	care services by the supplemental nursing services agency or by any employee of the agency;
1059.12 	(5) documentation that the supplemental nursing services agency has an employee 
1059.13 	dishonesty bond in the amount of $10,000;
1059.14 	(6) documentation that the supplemental nursing services agency has insurance coverage 
1059.15 	for workers' compensation for all nurses, nursing assistants, nurse aides, and orderlies 
1059.16 	provided or procured by the agency;
1059.17 	(7) documentation that the supplemental nursing services agency filed with the 
1059.18 	commissioner of revenue: (i) the name and address of the bank, savings bank, or savings 
1059.19 	association in which the supplemental nursing services agency deposits all employee income 
1059.20 	tax withholdings; and (ii) the name and address of any nurse, nursing assistant, nurse aide, 
1059.21 	or orderly whose income is derived from placement by the agency, if the agency purports 
1059.22 	the income is not subject to withholding;
1059.23 	(4) (8) any other relevant information that the commissioner determines is necessary to 
1059.24 	properly evaluate an application for registration;
1059.25 	(5) (9) a policy and procedure that describes how the supplemental nursing services 
1059.26 	agency's records will be immediately available at all times to the commissioner and facility; 
1059.27 	and
1059.28 	(6) (10) a nonrefundable registration fee of $2,035.
1059.29 	If a supplemental nursing services agency fails to provide the items in this subdivision 
1059.30 	to the department, the commissioner shall immediately suspend or refuse to issue the 
1059.31 	supplemental nursing services agency registration. The supplemental nursing services agency 
1059.32 	may appeal the commissioner's findings according to section 144A.475, subdivisions 3a 
1060.1 	and 7, except that the hearing must be conducted by an administrative law judge within 60 
1060.2 	calendar days of the request for hearing assignment.

1060.3 	Sec. 17. Minnesota Statutes 2022, section 144A.71, is amended by adding a subdivision 
1060.4 	to read:
1060.5 		Subd. 2a.Renewal applications. An applicant for registration renewal must complete 
1060.6 	the registration application form supplied by the department. An application must be 
1060.7 	submitted at least 60 days before the expiration of the current registration.

1060.8 	Sec. 18. [144A.715] PENALTIES.
1060.9 		Subdivision 1.Authority. The fines imposed under this section are in accordance with 
1060.10 	section 144.653, subdivision 6.
1060.11 		Subd. 2.Fines. Each violation of sections 144A.70 to 144A.74, not corrected at the time 
1060.12 	of a follow-up survey, is subject to a fine. A fine must be assessed according to the schedules 
1060.13 	established in the sections violated.
1060.14 		Subd. 3.Failure to correct. If, upon a subsequent follow-up survey after a fine has been 
1060.15 	imposed under subdivision 2, a violation is still not corrected, another fine shall be assessed. 
1060.16 	The fine shall be double the amount of the previous fine.
1060.17 		Subd. 4.Payment of fines. Payment of fines is due 15 business days from the registrant's 
1060.18 	receipt of notice of the fine from the department.

1060.19 	Sec. 19. Minnesota Statutes 2022, section 144A.72, subdivision 1, is amended to read:
1060.20 		Subdivision 1.Minimum criteria. (a) The commissioner shall require that, as a condition 
1060.21 	of registration:
1060.22 	(1) all owners and controlling persons must complete a background study under section 
1060.23 	144.057 and receive a clearance or set aside of any disqualification;
1060.24 	(1) (2) the supplemental nursing services agency shall document that each temporary 
1060.25 	employee provided to health care facilities currently meets the minimum licensing, training, 
1060.26 	and continuing education standards for the position in which the employee will be working
1060.27 	and verifies competency for the position. A supplemental nursing services agency that 
1060.28 	violates this clause may be subject to a fine of $3,000;
1060.29 	(2) (3) the supplemental nursing services agency shall comply with all pertinent 
1060.30 	requirements relating to the health and other qualifications of personnel employed in health 
1060.31 	care facilities;
1061.1 	(3) (4) the supplemental nursing services agency must not restrict in any manner the 
1061.2 	employment opportunities of its employees;. A supplemental nursing services agency that 
1061.3 	violates this clause may be subject to a fine of $3,000;
1061.4 	(4) the supplemental nursing services agency shall carry medical malpractice insurance 
1061.5 	to insure against the loss, damage, or expense incident to a claim arising out of the death 
1061.6 	or injury of any person as the result of negligence or malpractice in the provision of health 
1061.7 	care services by the supplemental nursing services agency or by any employee of the agency;
1061.8 	(5) the supplemental nursing services agency shall carry an employee dishonesty bond 
1061.9 	in the amount of $10,000;
1061.10 	(6) the supplemental nursing services agency shall maintain insurance coverage for 
1061.11 	workers' compensation for all nurses, nursing assistants, nurse aides, and orderlies provided 
1061.12 	or procured by the agency;
1061.13 	(7) the supplemental nursing services agency shall file with the commissioner of revenue: 
1061.14 	(i) the name and address of the bank, savings bank, or savings association in which the 
1061.15 	supplemental nursing services agency deposits all employee income tax withholdings; and 
1061.16 	(ii) the name and address of any nurse, nursing assistant, nurse aide, or orderly whose income 
1061.17 	is derived from placement by the agency, if the agency purports the income is not subject 
1061.18 	to withholding;
1061.19 	(8) (5) the supplemental nursing services agency must not, in any contract with any 
1061.20 	employee or health care facility, require the payment of liquidated damages, employment 
1061.21 	fees, or other compensation should the employee be hired as a permanent employee of a 
1061.22 	health care facility;. A supplemental nursing services agency that violates this clause may 
1061.23 	be subject to a fine of $3,000;
1061.24 	(9) (6) the supplemental nursing services agency shall document that each temporary 
1061.25 	employee provided to health care facilities is an employee of the agency and is not an 
1061.26 	independent contractor; and
1061.27 	(10) (7) the supplemental nursing services agency shall retain all records for five calendar 
1061.28 	years. All records of the supplemental nursing services agency must be immediately available 
1061.29 	to the department.
1061.30 	(b) In order to retain registration, the supplemental nursing services agency must provide 
1061.31 	services to a health care facility during the year in Minnesota within the past 12 months
1061.32 	preceding the supplemental nursing services agency's registration renewal date.

1062.1 	Sec. 20. Minnesota Statutes 2022, section 144A.73, is amended to read:
1062.2 	144A.73 COMPLAINT SYSTEM.
1062.3 	The commissioner shall establish a system for reporting complaints against a supplemental 
1062.4 	nursing services agency or its employees. Complaints may be made by any member of the 
1062.5 	public. Complaints against a supplemental nursing services agency shall be investigated by 
1062.6 	the Office of Health Facility Complaints commissioner of health under sections 144A.51
1062.7 	to 144A.53.

1062.8 	Sec. 21. Minnesota Statutes 2022, section 149A.02, subdivision 3, is amended to read:
1062.9 		Subd. 3.Arrangements for disposition. "Arrangements for disposition" means any 
1062.10 	action normally taken by a funeral provider in anticipation of or preparation for the 
1062.11 	entombment, burial in a cemetery, alkaline hydrolysis, or cremation, or, effective July 1, 
1062.12 	2025, natural organic reduction of a dead human body.

1062.13 	Sec. 22. Minnesota Statutes 2022, section 149A.02, subdivision 16, is amended to read:
1062.14 		Subd. 16.Final disposition. "Final disposition" means the acts leading to and the 
1062.15 	entombment, burial in a cemetery, alkaline hydrolysis, or cremation, or, effective July 1, 
1062.16 	2025, natural organic reduction of a dead human body.

1062.17 	Sec. 23. Minnesota Statutes 2022, section 149A.02, subdivision 26a, is amended to read:
1062.18 		Subd. 26a.Inurnment. "Inurnment" means placing hydrolyzed or cremated remains in 
1062.19 	a hydrolyzed or cremated remains container suitable for placement, burial, or shipment.
1062.20 	Effective July 1, 2025, inurnment also includes placing naturally reduced remains in a 
1062.21 	naturally reduced remains container suitable for placement, burial, or shipment.

1062.22 	Sec. 24. Minnesota Statutes 2022, section 149A.02, subdivision 27, is amended to read:
1062.23 		Subd. 27.Licensee. "Licensee" means any person or entity that has been issued a license 
1062.24 	to practice mortuary science, to operate a funeral establishment, to operate an alkaline 
1062.25 	hydrolysis facility, or to operate a crematory, or, effective July 1, 2025, to operate a natural 
1062.26 	organic reduction facility by the Minnesota commissioner of health.

1063.1 	Sec. 25. Minnesota Statutes 2022, section 149A.02, is amended by adding a subdivision 
1063.2 	to read:
1063.3 		Subd. 30b.Natural organic reduction or naturally reduce. "Natural organic reduction" 
1063.4 	or "naturally reduce" means the contained, accelerated conversion of a dead human body 
1063.5 	to soil. This subdivision is effective July 1, 2025.

1063.6 	Sec. 26. Minnesota Statutes 2022, section 149A.02, is amended by adding a subdivision 
1063.7 	to read:
1063.8 		Subd. 30c.Natural organic reduction facility. "Natural organic reduction facility" 
1063.9 	means a structure, room, or other space in a building or real property where natural organic 
1063.10 	reduction of a dead human body occurs. This subdivision is effective July 1, 2025.

1063.11 	Sec. 27. Minnesota Statutes 2022, section 149A.02, is amended by adding a subdivision 
1063.12 	to read:
1063.13 		Subd. 30d.Natural organic reduction vessel. "Natural organic reduction vessel" means 
1063.14 	the enclosed container in which natural organic reduction takes place. This subdivision is 
1063.15 	effective July 1, 2025.

1063.16 	Sec. 28. Minnesota Statutes 2022, section 149A.02, is amended by adding a subdivision 
1063.17 	to read:
1063.18 		Subd. 30e.Naturally reduced remains. "Naturally reduced remains" means the soil 
1063.19 	remains following the natural organic reduction of a dead human body and the accompanying 
1063.20 	plant material. This subdivision is effective July 1, 2025.

1063.21 	Sec. 29. Minnesota Statutes 2022, section 149A.02, is amended by adding a subdivision 
1063.22 	to read:
1063.23 		Subd. 30f.Naturally reduced remains container. "Naturally reduced remains container" 
1063.24 	means a receptacle in which naturally reduced remains are placed. This subdivision is 
1063.25 	effective July 1, 2025.

1063.26 	Sec. 30. Minnesota Statutes 2022, section 149A.02, subdivision 35, is amended to read:
1063.27 		Subd. 35.Processing. "Processing" means the removal of foreign objects, drying or 
1063.28 	cooling, and the reduction of the hydrolyzed orremains, cremated remains, or, effective 
1063.29 	July 1, 2025, naturally reduced remains by mechanical means including, but not limited to, 
1064.1 	grinding, crushing, or pulverizing, to a granulated appearance appropriate for final disposition 
1064.2 	or the final reduction to naturally reduced remains.

1064.3 	Sec. 31. Minnesota Statutes 2022, section 149A.02, subdivision 37c, is amended to read:
1064.4 		Subd. 37c.Scattering. "Scattering" means the authorized dispersal of hydrolyzed or
1064.5 	remains, cremated remains, or, effective July 1, 2025, naturally reduced remains in a defined 
1064.6 	area of a dedicated cemetery or in areas where no local prohibition exists provided that the 
1064.7 	hydrolyzed or, cremated, or naturally reduced remains are not distinguishable to the public, 
1064.8 	are not in a container, and that the person who has control over disposition of the hydrolyzed 
1064.9 	or, cremated, or naturally reduced remains has obtained written permission of the property 
1064.10 	owner or governing agency to scatter on the property.

1064.11 	Sec. 32. Minnesota Statutes 2022, section 149A.03, is amended to read:
1064.12 	149A.03 DUTIES OF COMMISSIONER.
1064.13 	The commissioner shall:
1064.14 	(1) enforce all laws and adopt and enforce rules relating to the:
1064.15 	(i) removal, preparation, transportation, arrangements for disposition, and final disposition 
1064.16 	of dead human bodies;
1064.17 	(ii) licensure and professional conduct of funeral directors, morticians, interns, practicum 
1064.18 	students, and clinical students;
1064.19 	(iii) licensing and operation of a funeral establishment;
1064.20 	(iv) licensing and operation of an alkaline hydrolysis facility; and
1064.21 	(v) licensing and operation of a crematory; and
1064.22 	(vi) effective July 1, 2025, licensing and operation of a natural organic reduction facility;
1064.23 	(2) provide copies of the requirements for licensure and permits to all applicants;
1064.24 	(3) administer examinations and issue licenses and permits to qualified persons and other 
1064.25 	legal entities;
1064.26 	(4) maintain a record of the name and location of all current licensees and interns;
1064.27 	(5) perform periodic compliance reviews and premise inspections of licensees;
1064.28 	(6) accept and investigate complaints relating to conduct governed by this chapter;
1064.29 	(7) maintain a record of all current preneed arrangement trust accounts;
1065.1 	(8) maintain a schedule of application, examination, permit, and licensure fees, initial 
1065.2 	and renewal, sufficient to cover all necessary operating expenses;
1065.3 	(9) educate the public about the existence and content of the laws and rules for mortuary 
1065.4 	science licensing and the removal, preparation, transportation, arrangements for disposition, 
1065.5 	and final disposition of dead human bodies to enable consumers to file complaints against 
1065.6 	licensees and others who may have violated those laws or rules;
1065.7 	(10) evaluate the laws, rules, and procedures regulating the practice of mortuary science 
1065.8 	in order to refine the standards for licensing and to improve the regulatory and enforcement 
1065.9 	methods used; and
1065.10 	(11) initiate proceedings to address and remedy deficiencies and inconsistencies in the 
1065.11 	laws, rules, or procedures governing the practice of mortuary science and the removal, 
1065.12 	preparation, transportation, arrangements for disposition, and final disposition of dead 
1065.13 	human bodies.

1065.14 	Sec. 33. [149A.56] LICENSE TO OPERATE A NATURAL ORGANIC REDUCTION 
1065.15 	FACILITY.
1065.16 		Subdivision 1.License requirement. This section is effective July 1, 2025. Except as 
1065.17 	provided in section 149A.01, subdivision 3, no person shall maintain, manage, or operate 
1065.18 	a place or premises devoted to or used in the holding and natural organic reduction of a 
1065.19 	dead human body without possessing a valid license to operate a natural organic reduction 
1065.20 	facility issued by the commissioner of health.
1065.21 		Subd. 2.Requirements for natural organic reduction facility. (a) A natural organic 
1065.22 	reduction facility licensed under this section must consist of:
1065.23 	(1) a building or structure that complies with applicable local and state building codes, 
1065.24 	zoning laws and ordinances, and environmental standards, and that contains one or more 
1065.25 	natural organic reduction vessels for the natural organic reduction of dead human bodies;
1065.26 	(2) a motorized mechanical device for processing the remains in natural reduction; and
1065.27 	(3) an appropriate refrigerated holding facility for dead human bodies awaiting natural 
1065.28 	organic reduction.
1065.29 	(b) A natural organic reduction facility licensed under this section may also contain a 
1065.30 	display room for funeral goods.
1066.1 		Subd. 3.Application procedure; documentation; initial inspection. (a) An applicant 
1066.2 	for a license to operate a natural organic reduction facility shall submit a completed 
1066.3 	application to the commissioner. A completed application includes:
1066.4 	(1) a completed application form, as provided by the commissioner;
1066.5 	(2) proof of business form and ownership; and
1066.6 	(3) proof of liability insurance coverage or other financial documentation, as determined 
1066.7 	by the commissioner, that demonstrates the applicant's ability to respond in damages for 
1066.8 	liability arising from the ownership, maintenance, management, or operation of a natural 
1066.9 	organic reduction facility.
1066.10 	(b) Upon receipt of the application and appropriate fee, the commissioner shall review 
1066.11 	and verify all information. Upon completion of the verification process and resolution of 
1066.12 	any deficiencies in the application information, the commissioner shall conduct an initial 
1066.13 	inspection of the premises to be licensed. After the inspection and resolution of any 
1066.14 	deficiencies found and any reinspections as may be necessary, the commissioner shall make 
1066.15 	a determination, based on all the information available, to grant or deny licensure. If the 
1066.16 	commissioner's determination is to grant the license, the applicant shall be notified and the 
1066.17 	license shall issue and remain valid for a period prescribed on the license, but not to exceed 
1066.18 	one calendar year from the date of issuance of the license. If the commissioner's determination 
1066.19 	is to deny the license, the commissioner must notify the applicant, in writing, of the denial 
1066.20 	and provide the specific reason for denial.
1066.21 		Subd. 4.Nontransferability of license. A license to operate a natural organic reduction 
1066.22 	facility is not assignable or transferable and shall not be valid for any entity other than the 
1066.23 	one named. Each license issued to operate a natural organic reduction facility is valid only 
1066.24 	for the location identified on the license. A 50 percent or more change in ownership or 
1066.25 	location of the natural organic reduction facility automatically terminates the license. Separate 
1066.26 	licenses shall be required of two or more persons or other legal entities operating from the 
1066.27 	same location.
1066.28 		Subd. 5.Display of license. Each license to operate a natural organic reduction facility 
1066.29 	must be conspicuously displayed in the natural organic reduction facility at all times. 
1066.30 	"Conspicuous display" means in a location where a member of the general public within 
1066.31 	the natural organic reduction facility is able to observe and read the license.
1066.32 		Subd. 6.Period of licensure. All licenses to operate a natural organic reduction facility 
1066.33 	issued by the commissioner are valid for a period of one calendar year beginning on July 1 
1066.34 	and ending on June 30, regardless of the date of issuance.
1067.1 		Subd. 7.Reporting changes in license information. Any change of license information 
1067.2 	must be reported to the commissioner, on forms provided by the commissioner, no later 
1067.3 	than 30 calendar days after the change occurs. Failure to report changes is grounds for 
1067.4 	disciplinary action.
1067.5 		Subd. 8.Licensing information. Section 13.41 applies to data collected and maintained 
1067.6 	by the commissioner pursuant to this section.

1067.7 	Sec. 34. [149A.57] RENEWAL OF LICENSE TO OPERATE A NATURAL 
1067.8 	ORGANIC REDUCTION FACILITY.
1067.9 		Subdivision 1.Renewal required. This section is effective July 1, 2025. All licenses 
1067.10 	to operate a natural organic reduction facility issued by the commissioner expire on June 
1067.11 	30 following the date of issuance of the license and must be renewed to remain valid.
1067.12 		Subd. 2.Renewal procedure and documentation. (a) Licensees who wish to renew 
1067.13 	their licenses must submit to the commissioner a completed renewal application no later 
1067.14 	than June 30 following the date the license was issued. A completed renewal application 
1067.15 	includes:
1067.16 	(1) a completed renewal application form, as provided by the commissioner; and
1067.17 	(2) proof of liability insurance coverage or other financial documentation, as determined 
1067.18 	by the commissioner, that demonstrates the applicant's ability to respond in damages for 
1067.19 	liability arising from the ownership, maintenance, management, or operation of a natural 
1067.20 	organic reduction facility.
1067.21 	(b) Upon receipt of the completed renewal application, the commissioner shall review 
1067.22 	and verify the information. Upon completion of the verification process and resolution of 
1067.23 	any deficiencies in the renewal application information, the commissioner shall make a 
1067.24 	determination, based on all the information available, to reissue or refuse to reissue the 
1067.25 	license. If the commissioner's determination is to reissue the license, the applicant shall be 
1067.26 	notified and the license shall issue and remain valid for a period prescribed on the license, 
1067.27 	but not to exceed one calendar year from the date of issuance of the license. If the 
1067.28 	commissioner's determination is to refuse to reissue the license, section 149A.09, subdivision 
1067.29 	2, applies.
1067.30 		Subd. 3.Penalty for late filing. Renewal applications received after the expiration date 
1067.31 	of a license will result in the assessment of a late filing penalty. The late filing penalty must 
1067.32 	be paid before the reissuance of the license and received by the commissioner no later than 
1067.33 	31 calendar days after the expiration date of the license.
1068.1 		Subd. 4.Lapse of license. A license to operate a natural organic reduction facility shall 
1068.2 	automatically lapse when a completed renewal application is not received by the 
1068.3 	commissioner within 31 calendar days after the expiration date of a license, or a late filing 
1068.4 	penalty assessed under subdivision 3 is not received by the commissioner within 31 calendar 
1068.5 	days after the expiration of a license.
1068.6 		Subd. 5.Effect of lapse of license. Upon the lapse of a license, the person to whom the 
1068.7 	license was issued is no longer licensed to operate a natural organic reduction facility in 
1068.8 	Minnesota. The commissioner shall issue a cease and desist order to prevent the lapsed 
1068.9 	license holder from operating a natural organic reduction facility in Minnesota and may 
1068.10 	pursue any additional lawful remedies as justified by the case.
1068.11 		Subd. 6.Restoration of lapsed license. The commissioner may restore a lapsed license 
1068.12 	upon receipt and review of a completed renewal application, receipt of the late filing penalty, 
1068.13 	and reinspection of the premises, provided that the receipt is made within one calendar year 
1068.14 	from the expiration date of the lapsed license and the cease and desist order issued by the 
1068.15 	commissioner has not been violated. If a lapsed license is not restored within one calendar 
1068.16 	year from the expiration date of the lapsed license, the holder of the lapsed license cannot 
1068.17 	be relicensed until the requirements in section 149A.56 are met.
1068.18 		Subd. 7.Reporting changes in license information. Any change of license information 
1068.19 	must be reported to the commissioner, on forms provided by the commissioner, no later 
1068.20 	than 30 calendar days after the change occurs. Failure to report changes is grounds for 
1068.21 	disciplinary action.
1068.22 		Subd. 8.Licensing information. Section 13.41 applies to data collected and maintained 
1068.23 	by the commissioner pursuant to this section.

1068.24 	Sec. 35. Minnesota Statutes 2022, section 149A.65, is amended by adding a subdivision 
1068.25 	to read:
1068.26 		Subd. 6a.Natural organic reduction facilities. This subdivision is effective July 1, 
1068.27 	2025. The initial and renewal fee for a natural organic reduction facility is $425. The late 
1068.28 	fee charge for a license renewal is $100.

1068.29 	Sec. 36. Minnesota Statutes 2022, section 149A.70, subdivision 1, is amended to read:
1068.30 		Subdivision 1.Use of titles. Only a person holding a valid license to practice mortuary 
1068.31 	science issued by the commissioner may use the title of mortician, funeral director, or any 
1068.32 	other title implying that the licensee is engaged in the business or practice of mortuary 
1069.1 	science. Only the holder of a valid license to operate an alkaline hydrolysis facility issued 
1069.2 	by the commissioner may use the title of alkaline hydrolysis facility, water cremation, 
1069.3 	water-reduction, biocremation, green-cremation, resomation, dissolution, or any other title, 
1069.4 	word, or term implying that the licensee operates an alkaline hydrolysis facility. Only the 
1069.5 	holder of a valid license to operate a funeral establishment issued by the commissioner may 
1069.6 	use the title of funeral home, funeral chapel, funeral service, or any other title, word, or 
1069.7 	term implying that the licensee is engaged in the business or practice of mortuary science. 
1069.8 	Only the holder of a valid license to operate a crematory issued by the commissioner may 
1069.9 	use the title of crematory, crematorium, green-cremation, or any other title, word, or term 
1069.10 	implying that the licensee operates a crematory or crematorium. Effective July 1, 2025,
1069.11 	only the holder of a valid license to operate a natural organic reduction facility issued by 
1069.12 	the commissioner may use the title of natural organic reduction facility, human composting, 
1069.13 	or any other title, word, or term implying that the licensee operates a natural organic reduction 
1069.14 	facility.

1069.15 	Sec. 37. Minnesota Statutes 2022, section 149A.70, subdivision 2, is amended to read:
1069.16 		Subd. 2.Business location. A funeral establishment, alkaline hydrolysis facility, or
1069.17 	crematory, or, effective July 1, 2025, natural organic reduction facility shall not do business 
1069.18 	in a location that is not licensed as a funeral establishment, alkaline hydrolysis facility, or
1069.19 	crematory, or natural organic reduction facility and shall not advertise a service that is 
1069.20 	available from an unlicensed location.

1069.21 	Sec. 38. Minnesota Statutes 2022, section 149A.70, subdivision 3, is amended to read:
1069.22 		Subd. 3.Advertising. No licensee, clinical student, practicum student, or intern shall 
1069.23 	publish or disseminate false, misleading, or deceptive advertising. False, misleading, or 
1069.24 	deceptive advertising includes, but is not limited to:
1069.25 	(1) identifying, by using the names or pictures of, persons who are not licensed to practice 
1069.26 	mortuary science in a way that leads the public to believe that those persons will provide 
1069.27 	mortuary science services;
1069.28 	(2) using any name other than the names under which the funeral establishment, alkaline 
1069.29 	hydrolysis facility, or crematory, or, effective July 1, 2025, natural organic reduction facility
1069.30 	is known to or licensed by the commissioner;
1069.31 	(3) using a surname not directly, actively, or presently associated with a licensed funeral 
1069.32 	establishment, alkaline hydrolysis facility, or crematory, or, effective July 1, 2025, natural 
1069.33 	organic reduction facility, unless the surname had been previously and continuously used 
1070.1 	by the licensed funeral establishment, alkaline hydrolysis facility, or crematory, or natural 
1070.2 	organic reduction facility; and
1070.3 	(4) using a founding or establishing date or total years of service not directly or 
1070.4 	continuously related to a name under which the funeral establishment, alkaline hydrolysis 
1070.5 	facility, or crematory, or, effective July 1, 2025, natural organic reduction facility is currently 
1070.6 	or was previously licensed.
1070.7 	Any advertising or other printed material that contains the names or pictures of persons 
1070.8 	affiliated with a funeral establishment, alkaline hydrolysis facility, or crematory, or, effective 
1070.9 	July 1, 2025, natural organic reduction facility shall state the position held by the persons 
1070.10 	and shall identify each person who is licensed or unlicensed under this chapter.

1070.11 	Sec. 39. Minnesota Statutes 2022, section 149A.70, subdivision 5, is amended to read:
1070.12 		Subd. 5.Reimbursement prohibited. No licensee, clinical student, practicum student, 
1070.13 	or intern shall offer, solicit, or accept a commission, fee, bonus, rebate, or other 
1070.14 	reimbursement in consideration for recommending or causing a dead human body to be 
1070.15 	disposed of by a specific body donation program, funeral establishment, alkaline hydrolysis 
1070.16 	facility, crematory, mausoleum, or cemetery, or, effective July 1, 2025, natural organic 
1070.17 	reduction facility.

1070.18 	Sec. 40. Minnesota Statutes 2022, section 149A.71, subdivision 2, is amended to read:
1070.19 		Subd. 2.Preventive requirements. (a) To prevent unfair or deceptive acts or practices, 
1070.20 	the requirements of this subdivision must be met. This subdivision applies to natural organic 
1070.21 	reduction and naturally reduced remains goods and services effective July 1, 2025.
1070.22 	(b) Funeral providers must tell persons who ask by telephone about the funeral provider's 
1070.23 	offerings or prices any accurate information from the price lists described in paragraphs (c) 
1070.24 	to (e) and any other readily available information that reasonably answers the questions 
1070.25 	asked.
1070.26 	(c) Funeral providers must make available for viewing to people who inquire in person 
1070.27 	about the offerings or prices of funeral goods or burial site goods, separate printed or 
1070.28 	typewritten price lists using a ten-point font or larger. Each funeral provider must have a 
1070.29 	separate price list for each of the following types of goods that are sold or offered for sale:
1070.30 	(1) caskets;
1070.31 	(2) alternative containers;
1071.1 	(3) outer burial containers;
1071.2 	(4) alkaline hydrolysis containers;
1071.3 	(5) cremation containers;
1071.4 	(6) hydrolyzed remains containers;
1071.5 	(7) cremated remains containers;
1071.6 	(8) markers; and
1071.7 	(9) headstones.; and
1071.8 	(10) naturally reduced remains containers.
1071.9 	(d) Each separate price list must contain the name of the funeral provider's place of 
1071.10 	business, address, and telephone number and a caption describing the list as a price list for 
1071.11 	one of the types of funeral goods or burial site goods described in paragraph (c), clauses 
1071.12 	(1) to (9) (10). The funeral provider must offer the list upon beginning discussion of, but 
1071.13 	in any event before showing, the specific funeral goods or burial site goods and must provide 
1071.14 	a photocopy of the price list, for retention, if so asked by the consumer. The list must contain, 
1071.15 	at least, the retail prices of all the specific funeral goods and burial site goods offered which 
1071.16 	do not require special ordering, enough information to identify each, and the effective date 
1071.17 	for the price list. However, funeral providers are not required to make a specific price list 
1071.18 	available if the funeral providers place the information required by this paragraph on the 
1071.19 	general price list described in paragraph (e).
1071.20 	(e) Funeral providers must give a printed price list, for retention, to persons who inquire 
1071.21 	in person about the funeral goods, funeral services, burial site goods, or burial site services 
1071.22 	or prices offered by the funeral provider. The funeral provider must give the list upon 
1071.23 	beginning discussion of either the prices of or the overall type of funeral service or disposition 
1071.24 	or specific funeral goods, funeral services, burial site goods, or burial site services offered 
1071.25 	by the provider. This requirement applies whether the discussion takes place in the funeral 
1071.26 	establishment or elsewhere. However, when the deceased is removed for transportation to 
1071.27 	the funeral establishment, an in-person request for authorization to embalm does not, by 
1071.28 	itself, trigger the requirement to offer the general price list. If the provider, in making an 
1071.29 	in-person request for authorization to embalm, discloses that embalming is not required by 
1071.30 	law except in certain special cases, the provider is not required to offer the general price 
1071.31 	list. Any other discussion during that time about prices or the selection of funeral goods, 
1071.32 	funeral services, burial site goods, or burial site services triggers the requirement to give 
1072.1 	the consumer a general price list. The general price list must contain the following 
1072.2 	information:
1072.3 	(1) the name, address, and telephone number of the funeral provider's place of business;
1072.4 	(2) a caption describing the list as a "general price list";
1072.5 	(3) the effective date for the price list;
1072.6 	(4) the retail prices, in any order, expressed either as a flat fee or as the prices per hour, 
1072.7 	mile, or other unit of computation, and other information described as follows:
1072.8 	(i) forwarding of remains to another funeral establishment, together with a list of the 
1072.9 	services provided for any quoted price;
1072.10 	(ii) receiving remains from another funeral establishment, together with a list of the 
1072.11 	services provided for any quoted price;
1072.12 	(iii) separate prices for each alkaline hydrolysis, natural organic reduction, or cremation 
1072.13 	offered by the funeral provider, with the price including an alternative container or alkaline 
1072.14 	hydrolysis facility or cremation container,; any alkaline hydrolysis, natural organic reduction 
1072.15 	facility, or crematory charges,; and a description of the services and container included in 
1072.16 	the price, where applicable, and the price of alkaline hydrolysis or cremation where the 
1072.17 	purchaser provides the container;
1072.18 	(iv) separate prices for each immediate burial offered by the funeral provider, including 
1072.19 	a casket or alternative container, and a description of the services and container included 
1072.20 	in that price, and the price of immediate burial where the purchaser provides the casket or 
1072.21 	alternative container;
1072.22 	(v) transfer of remains to the funeral establishment or other location;
1072.23 	(vi) embalming;
1072.24 	(vii) other preparation of the body;
1072.25 	(viii) use of facilities, equipment, or staff for viewing;
1072.26 	(ix) use of facilities, equipment, or staff for funeral ceremony;
1072.27 	(x) use of facilities, equipment, or staff for memorial service;
1072.28 	(xi) use of equipment or staff for graveside service;
1072.29 	(xii) hearse or funeral coach;
1072.30 	(xiii) limousine; and
1073.1 	(xiv) separate prices for all cemetery-specific goods and services, including all goods 
1073.2 	and services associated with interment and burial site goods and services and excluding 
1073.3 	markers and headstones;
1073.4 	(5) the price range for the caskets offered by the funeral provider, together with the 
1073.5 	statement "A complete price list will be provided at the funeral establishment or casket sale 
1073.6 	location." or the prices of individual caskets, as disclosed in the manner described in 
1073.7 	paragraphs (c) and (d);
1073.8 	(6) the price range for the alternative containers or shrouds offered by the funeral provider, 
1073.9 	together with the statement "A complete price list will be provided at the funeral 
1073.10 	establishment or alternative container sale location." or the prices of individual alternative 
1073.11 	containers, as disclosed in the manner described in paragraphs (c) and (d);
1073.12 	(7) the price range for the outer burial containers offered by the funeral provider, together 
1073.13 	with the statement "A complete price list will be provided at the funeral establishment or 
1073.14 	outer burial container sale location." or the prices of individual outer burial containers, as 
1073.15 	disclosed in the manner described in paragraphs (c) and (d);
1073.16 	(8) the price range for the alkaline hydrolysis container offered by the funeral provider, 
1073.17 	together with the statement "A complete price list will be provided at the funeral 
1073.18 	establishment or alkaline hydrolysis container sale location." or the prices of individual 
1073.19 	alkaline hydrolysis containers, as disclosed in the manner described in paragraphs (c) and 
1073.20 	(d);
1073.21 	(9) the price range for the hydrolyzed remains container offered by the funeral provider, 
1073.22 	together with the statement "A complete price list will be provided at the funeral 
1073.23 	establishment or hydrolyzed remains container sale location." or the prices of individual 
1073.24 	hydrolyzed remains container, as disclosed in the manner described in paragraphs (c) and 
1073.25 	(d);
1073.26 	(10) the price range for the cremation containers offered by the funeral provider, together 
1073.27 	with the statement "A complete price list will be provided at the funeral establishment or 
1073.28 	cremation container sale location." or the prices of individual cremation containers, as 
1073.29 	disclosed in the manner described in paragraphs (c) and (d);
1073.30 	(11) the price range for the cremated remains containers offered by the funeral provider, 
1073.31 	together with the statement, "A complete price list will be provided at the funeral 
1073.32 	establishment or cremated remains container sale location," or the prices of individual 
1073.33 	cremation containers as disclosed in the manner described in paragraphs (c) and (d);
1074.1 	(12) the price range for the naturally reduced remains containers offered by the funeral 
1074.2 	provider, together with the statement, "A complete price list will be provided at the funeral 
1074.3 	establishment or naturally reduced remains container sale location," or the prices of individual 
1074.4 	naturally reduced remains containers as disclosed in the manner described in paragraphs 
1074.5 	(c) and (d);
1074.6 	(12) (13) the price for the basic services of funeral provider and staff, together with a 
1074.7 	list of the principal basic services provided for any quoted price and, if the charge cannot 
1074.8 	be declined by the purchaser, the statement "This fee for our basic services will be added 
1074.9 	to the total cost of the funeral arrangements you select. (This fee is already included in our 
1074.10 	charges for alkaline hydrolysis, natural organic reduction, direct cremations, immediate 
1074.11 	burials, and forwarding or receiving remains.)" If the charge cannot be declined by the 
1074.12 	purchaser, the quoted price shall include all charges for the recovery of unallocated funeral 
1074.13 	provider overhead, and funeral providers may include in the required disclosure the phrase 
1074.14 	"and overhead" after the word "services." This services fee is the only funeral provider fee 
1074.15 	for services, facilities, or unallocated overhead permitted by this subdivision to be 
1074.16 	nondeclinable, unless otherwise required by law;
1074.17 	(13) (14) the price range for the markers and headstones offered by the funeral provider, 
1074.18 	together with the statement "A complete price list will be provided at the funeral 
1074.19 	establishment or marker or headstone sale location." or the prices of individual markers and 
1074.20 	headstones, as disclosed in the manner described in paragraphs (c) and (d); and
1074.21 	(14) (15) any package priced funerals offered must be listed in addition to and following 
1074.22 	the information required in paragraph (e) and must clearly state the funeral goods and 
1074.23 	services being offered, the price being charged for those goods and services, and the 
1074.24 	discounted savings.
1074.25 	(f) Funeral providers must give an itemized written statement, for retention, to each 
1074.26 	consumer who arranges an at-need funeral or other disposition of human remains at the 
1074.27 	conclusion of the discussion of the arrangements. The itemized written statement must be 
1074.28 	signed by the consumer selecting the goods and services as required in section 149A.80. If 
1074.29 	the statement is provided by a funeral establishment, the statement must be signed by the 
1074.30 	licensed funeral director or mortician planning the arrangements. If the statement is provided 
1074.31 	by any other funeral provider, the statement must be signed by an authorized agent of the 
1074.32 	funeral provider. The statement must list the funeral goods, funeral services, burial site 
1074.33 	goods, or burial site services selected by that consumer and the prices to be paid for each 
1074.34 	item, specifically itemized cash advance items (these prices must be given to the extent then 
1074.35 	known or reasonably ascertainable if the prices are not known or reasonably ascertainable, 
1075.1 	a good faith estimate shall be given and a written statement of the actual charges shall be 
1075.2 	provided before the final bill is paid), and the total cost of goods and services selected. At 
1075.3 	the conclusion of an at-need arrangement, the funeral provider is required to give the 
1075.4 	consumer a copy of the signed itemized written contract that must contain the information 
1075.5 	required in this paragraph.
1075.6 	(g) Upon receiving actual notice of the death of an individual with whom a funeral 
1075.7 	provider has entered a preneed funeral agreement, the funeral provider must provide a copy 
1075.8 	of all preneed funeral agreement documents to the person who controls final disposition of 
1075.9 	the human remains or to the designee of the person controlling disposition. The person 
1075.10 	controlling final disposition shall be provided with these documents at the time of the 
1075.11 	person's first in-person contact with the funeral provider, if the first contact occurs in person 
1075.12 	at a funeral establishment, alkaline hydrolysis facility, crematory, natural organic reduction 
1075.13 	facility, or other place of business of the funeral provider. If the contact occurs by other 
1075.14 	means or at another location, the documents must be provided within 24 hours of the first 
1075.15 	contact.

1075.16 	Sec. 41. Minnesota Statutes 2022, section 149A.71, subdivision 4, is amended to read:
1075.17 		Subd. 4.Casket, alternate container, alkaline hydrolysis container, naturally reduced 
1075.18 	remains container, and cremation container sales; records; required disclosures. Any 
1075.19 	funeral provider who sells or offers to sell a casket, alternate container, alkaline hydrolysis 
1075.20 	container, hydrolyzed remains container, cremation container, or cremated remains container, 
1075.21 	or, effective July 1, 2025, naturally reduced remains container to the public must maintain 
1075.22 	a record of each sale that includes the name of the purchaser, the purchaser's mailing address, 
1075.23 	the name of the decedent, the date of the decedent's death, and the place of death. These 
1075.24 	records shall be open to inspection by the regulatory agency. Any funeral provider selling 
1075.25 	a casket, alternate container, or cremation container to the public, and not having charge of 
1075.26 	the final disposition of the dead human body, shall provide a copy of the statutes and rules 
1075.27 	controlling the removal, preparation, transportation, arrangements for disposition, and final 
1075.28 	disposition of a dead human body. This subdivision does not apply to morticians, funeral 
1075.29 	directors, funeral establishments, crematories, or wholesale distributors of caskets, alternate 
1075.30 	containers, alkaline hydrolysis containers, or cremation containers.

1075.31 	Sec. 42. Minnesota Statutes 2022, section 149A.72, subdivision 3, is amended to read:
1075.32 		Subd. 3.Casket for alkaline hydrolysis, natural organic reduction, or cremation 
1075.33 	provisions; deceptive acts or practices. In selling or offering to sell funeral goods or 
1076.1 	funeral services to the public, it is a deceptive act or practice for a funeral provider to 
1076.2 	represent that a casket is required for alkaline hydrolysis or, cremations, or, effective July 
1076.3 	1, 2025, natural organic reduction by state or local law or otherwise.

1076.4 	Sec. 43. Minnesota Statutes 2022, section 149A.72, subdivision 9, is amended to read:
1076.5 		Subd. 9.Deceptive acts or practices. In selling or offering to sell funeral goods, funeral 
1076.6 	services, burial site goods, or burial site services to the public, it is a deceptive act or practice 
1076.7 	for a funeral provider to represent that federal, state, or local laws, or particular cemeteries, 
1076.8 	alkaline hydrolysis facilities, or crematories, or, effective July 1, 2025, natural organic 
1076.9 	reduction facilities require the purchase of any funeral goods, funeral services, burial site 
1076.10 	goods, or burial site services when that is not the case.

1076.11 	Sec. 44. Minnesota Statutes 2022, section 149A.73, subdivision 1, is amended to read:
1076.12 		Subdivision 1.Casket for alkaline hydrolysis, natural organic reduction, or cremation 
1076.13 	provisions; deceptive acts or practices. In selling or offering to sell funeral goods, funeral 
1076.14 	services, burial site goods, or burial site services to the public, it is a deceptive act or practice 
1076.15 	for a funeral provider to require that a casket be purchased for alkaline hydrolysis or,
1076.16 	cremation, or, effective July 1, 2025, natural organic reduction.

1076.17 	Sec. 45. Minnesota Statutes 2022, section 149A.74, subdivision 1, is amended to read:
1076.18 		Subdivision 1.Services provided without prior approval; deceptive acts or 
1076.19 	practices. In selling or offering to sell funeral goods or funeral services to the public, it is 
1076.20 	a deceptive act or practice for any funeral provider to embalm a dead human body unless 
1076.21 	state or local law or regulation requires embalming in the particular circumstances regardless 
1076.22 	of any funeral choice which might be made, or prior approval for embalming has been 
1076.23 	obtained from an individual legally authorized to make such a decision. In seeking approval 
1076.24 	to embalm, the funeral provider must disclose that embalming is not required by law except 
1076.25 	in certain circumstances; that a fee will be charged if a funeral is selected which requires 
1076.26 	embalming, such as a funeral with viewing; and that no embalming fee will be charged if 
1076.27 	the family selects a service which does not require embalming, such as direct alkaline 
1076.28 	hydrolysis, direct cremation, or immediate burial, or, effective July 1, 2025, natural organic 
1076.29 	reduction.

1077.1 	Sec. 46. Minnesota Statutes 2022, section 149A.93, subdivision 3, is amended to read:
1077.2 		Subd. 3.Disposition permit. A disposition permit is required before a body can be 
1077.3 	buried, entombed, alkaline hydrolyzed, or cremated, or, effective July 1, 2025, naturally 
1077.4 	reduced. No disposition permit shall be issued until a fact of death record has been completed 
1077.5 	and filed with the state registrar of vital records.

1077.6 	Sec. 47. Minnesota Statutes 2022, section 149A.94, subdivision 1, is amended to read:
1077.7 		Subdivision 1.Generally. Every dead human body lying within the state, except 
1077.8 	unclaimed bodies delivered for dissection by the medical examiner, those delivered for 
1077.9 	anatomical study pursuant to section 149A.81, subdivision 2, or lawfully carried through 
1077.10 	the state for the purpose of disposition elsewhere; and the remains of any dead human body 
1077.11 	after dissection or anatomical study, shall be decently buried or entombed in a public or 
1077.12 	private cemetery, alkaline hydrolyzed, or cremated, or, effective July 1, 2025, naturally 
1077.13 	reduced within a reasonable time after death. Where final disposition of a body will not be 
1077.14 	accomplished, or, effective July 1, 2025, when natural organic reduction will not be initiated,
1077.15 	within 72 hours following death or release of the body by a competent authority with 
1077.16 	jurisdiction over the body, the body must be properly embalmed, refrigerated, or packed 
1077.17 	with dry ice. A body may not be kept in refrigeration for a period exceeding six calendar 
1077.18 	days, or packed in dry ice for a period that exceeds four calendar days, from the time of 
1077.19 	death or release of the body from the coroner or medical examiner.

1077.20 	Sec. 48. Minnesota Statutes 2022, section 149A.94, subdivision 3, is amended to read:
1077.21 		Subd. 3.Permit required. No dead human body shall be buried, entombed, or cremated, 
1077.22 	alkaline hydrolyzed, or, effective July 1, 2025, naturally reduced without a disposition 
1077.23 	permit. The disposition permit must be filed with the person in charge of the place of final 
1077.24 	disposition. Where a dead human body will be transported out of this state for final 
1077.25 	disposition, the body must be accompanied by a certificate of removal.

1077.26 	Sec. 49. Minnesota Statutes 2022, section 149A.94, subdivision 4, is amended to read:
1077.27 		Subd. 4.Alkaline hydrolysis or, cremation, or natural organic reduction. Inurnment 
1077.28 	of alkaline hydrolyzed or remains, cremated remains, or, effective July 1, 2025, naturally 
1077.29 	reduced remains and release to an appropriate party is considered final disposition and no 
1077.30 	further permits or authorizations are required for transportation, interment, entombment, or 
1077.31 	placement of the cremated remains, except as provided in section 149A.95, subdivision 16.

1078.1 	Sec. 50. [149A.955] NATURAL ORGANIC REDUCTION FACILITIES AND 
1078.2 	NATURAL ORGANIC REDUCTION.
1078.3 		Subdivision 1.License required. This section is effective July 1, 2025. A dead human 
1078.4 	body may only undergo natural organic reduction in this state at a natural organic reduction 
1078.5 	facility licensed by the commissioner of health.
1078.6 		Subd. 2.General requirements. Any building to be used as a natural organic reduction 
1078.7 	facility must comply with all applicable local and state building codes, zoning laws and 
1078.8 	ordinances, and environmental standards. A natural organic reduction facility must have on 
1078.9 	site a natural organic reduction system approved by the commissioner and a motorized 
1078.10 	mechanical device for processing the remains in natural reduction and must have in the 
1078.11 	building a refrigerated holding facility for the retention of dead human bodies awaiting 
1078.12 	natural organic reduction. The holding facility must be secure from access by anyone except 
1078.13 	the authorized personnel of the natural organic reduction facility, preserve the dignity of 
1078.14 	the remains, and protect the health and safety of the natural organic reduction facility 
1078.15 	personnel.
1078.16 		Subd. 3.Aerobic reduction vessel. A natural organic reduction facility must use as a 
1078.17 	natural organic reduction vessel a contained reduction vessel that is designed to promote 
1078.18 	aerobic reduction and that minimizes odors.
1078.19 		Subd. 4.Any room where body is prepared. Any room where the deceased will be 
1078.20 	prepared for natural organic reduction must be properly lit and ventilated with an exhaust 
1078.21 	fan. It must be equipped with a functional sink with hot and cold running water. It must 
1078.22 	have nonporous flooring, such that a sanitary condition is provided. The walls and ceiling 
1078.23 	of the room must run from floor to ceiling and be covered with tile, or by plaster or sheetrock 
1078.24 	painted with washable paint or other appropriate material, such that a sanitary condition is 
1078.25 	provided. The doors, walls, ceiling, and windows must be constructed to prevent odors from 
1078.26 	entering any other part of the building.
1078.27 		Subd. 5.Access and privacy. (a) The room where a licensed mortician prepares a body 
1078.28 	must be private and must not have a general passageway through it. All windows or other 
1078.29 	openings to the outside must be treated in a manner that prevents viewing into the room 
1078.30 	where the deceased will be prepared for natural organic reduction. A viewing window for 
1078.31 	authorized family members or their designees is not a violation of this subdivision.
1078.32 	(b) The room must, at all times, be secure from the entrance of unauthorized persons.
1078.33 	(c) For purposes of this section, "authorized persons" are:
1079.1 	(1) licensed morticians;
1079.2 	(2) registered interns or students as described in section 149A.91, subdivision 6;
1079.3 	(3) public officials or representatives in the discharge of their official duties;
1079.4 	(4) trained natural organic reduction facility operators; and
1079.5 	(5) the person or persons with the right to control the dead human body as defined in 
1079.6 	section 149A.80, subdivision 2, and their designees.
1079.7 	(d) Each door allowing ingress or egress must carry a sign that indicates that the room 
1079.8 	is private and access is limited. All authorized persons who are present in or enter the room 
1079.9 	while a body is being prepared for final disposition must be attired according to all applicable 
1079.10 	state and federal regulations regarding the control of infectious disease and occupational 
1079.11 	and workplace health and safety.
1079.12 		Subd. 6.Areas for vessels or naturally organic reduction operations. Any rooms or 
1079.13 	areas where the vessels reside or where any operation takes place involving the handling 
1079.14 	of the vessels or the remains must be ventilated with exhaust fans. The doors, walls, ceiling, 
1079.15 	and windows shall be constructed to prevent odors from entering any other part of the 
1079.16 	building. All windows must be treated in a manner that maintains privacy when the remains 
1079.17 	are handled. A sanitary condition must be provided. Any area where human remains are 
1079.18 	transferred, prepared, or processed must have nonpourous flooring, and the walls and ceiling 
1079.19 	of the rooms must run from floor to ceiling and be covered with tile, or by plaster, sheetrock, 
1079.20 	or concrete painted with washable paint or other appropriate material, such that a sanitary 
1079.21 	condition is provided. Access to the vessel holding area must only be granted to individuals 
1079.22 	outlined in subdivision 5 and to authorized visitors at the discretion of the licensed facility 
1079.23 	under the direct supervision of trained facility staff, provided that such access does not 
1079.24 	violate subdivision 18.
1079.25 		Subd. 7.Equipment and supplies. The natural organic reduction facility must have a 
1079.26 	functional emergency eye wash and quick drench shower.
1079.27 		Subd. 8.Sanitary conditions and permitted use. The room where the deceased will 
1079.28 	be prepared for natural organic reduction, the area where the natural organic reduction 
1079.29 	vessels are located or where the natural organic reduction operations are undertaken, and 
1079.30 	all fixtures, equipment, instruments, receptacles, clothing, and other appliances or supplies 
1079.31 	stored or used in these operations must be maintained in a clean and sanitary condition at 
1079.32 	all times.
1080.1 		Subd. 9.Occupational and workplace safety. All applicable provisions of state and 
1080.2 	federal regulations regarding exposure to workplace hazards and accidents must be followed 
1080.3 	to protect the health and safety of all authorized persons at the natural organic reduction 
1080.4 	facility.
1080.5 		Subd. 10.Unlicensed personnel. A licensed natural organic reduction facility may 
1080.6 	employ unlicensed personnel, provided that all applicable provisions of this chapter are 
1080.7 	followed. It is the duty of the licensed natural organic reduction facility to provide proper 
1080.8 	training for all unlicensed personnel, and the licensed natural organic reduction facility shall 
1080.9 	be strictly accountable for compliance with this chapter and other applicable state and federal 
1080.10 	regulations regarding occupational and workplace health and safety.
1080.11 		Subd. 11.Authorization to naturally reduce. No natural organic reduction facility 
1080.12 	shall naturally reduce or cause to be naturally reduced any dead human body or identifiable 
1080.13 	body part without receiving written authorization to do so from the person or persons who 
1080.14 	have the legal right to control disposition as described in section 149A.80 or the person's 
1080.15 	legal designee. The written authorization must include:
1080.16 	(1) the name of the deceased and the date of death of the deceased;
1080.17 	(2) a statement authorizing the natural organic reduction facility to naturally reduce the 
1080.18 	body;
1080.19 	(3) the name, address, phone number, relationship to the deceased, and signature of the 
1080.20 	person or persons with the legal right to control final disposition or a legal designee;
1080.21 	(4) directions for the disposition of any non-naturally reduced materials or items recovered 
1080.22 	from the natural organic reduction vessel;
1080.23 	(5) acknowledgment that some of the remains will be mechanically reduced to a 
1080.24 	granulated appearance and returned to the natural reduction vessel with the remains for final 
1080.25 	reduction; and
1080.26 	(6) directions for the ultimate disposition of the naturally reduced remains.
1080.27 		Subd. 12.Limitation of liability. The limitations in section 149A.95, subdivision 5, 
1080.28 	apply to natural organic reduction facilities.
1080.29 		Subd. 13.Acceptance of delivery of body. (a) No dead human body shall be accepted 
1080.30 	for final disposition by natural organic reduction unless the body is:
1080.31 	(1) wrapped in a container, such as a pouch, that is impermeable or leak-resistant;
1081.1 	(2) accompanied by a disposition permit issued pursuant to section 149A.93, subdivision 
1081.2 	3, including a photocopy of the complete death record or a signed release authorizing natural 
1081.3 	organic reduction received from a coroner or medical examiner; and
1081.4 	(3) accompanied by a natural organic reduction authorization that complies with 
1081.5 	subdivision 5.
1081.6 	(b) A natural organic reduction facility shall refuse to accept delivery of the dead human 
1081.7 	body:
1081.8 	(1) where there is a known dispute concerning natural organic reduction of the body 
1081.9 	delivered;
1081.10 	(2) where there is a reasonable basis for questioning any of the representations made on 
1081.11 	the written authorization to naturally reduce; or
1081.12 	(3) for any other lawful reason.
1081.13 	(c) When a container or pouch containing a dead human body shows evidence of leaking 
1081.14 	bodily fluid, the container or pouch and the body must be returned to the contracting funeral 
1081.15 	establishment, or the body must be transferred to a new container or pouch by a licensed 
1081.16 	mortician.
1081.17 	(d) If a dead human body is delivered to a natural organic reduction facility in a container 
1081.18 	or pouch that is not suitable for placement in a natural organic reduction vessel, the transfer 
1081.19 	of the body to the vessel must be performed by a licensed mortician.
1081.20 		Subd. 14.Bodies awaiting natural organic reduction. A dead human body must be 
1081.21 	placed in the natural organic reduction vessel to initiate the natural reduction process within 
1081.22 	24 hours after the natural organic reduction facility accepts legal and physical custody of 
1081.23 	the body.
1081.24 		Subd. 15.Handling of dead human bodies. All natural organic reduction facility 
1081.25 	employees handling the containers or pouches for dead human bodies shall use universal 
1081.26 	precautions and otherwise exercise all reasonable precautions to minimize the risk of 
1081.27 	transmitting any communicable disease from the body. No dead human body shall be 
1081.28 	removed from the container or pouch in which it is delivered to the natural organic reduction 
1081.29 	facility without express written authorization of the person or persons with legal right to 
1081.30 	control the disposition and only by a licensed mortician. The remains shall be considered 
1081.31 	a dead human body until after the final reduction. The person or persons with the legal right 
1081.32 	to control the body may be involved with preparation of the body pursuant to section 
1081.33 	149A.01, subdivision 3, paragraph (c).
1082.1 		Subd. 16.Identification of the body. All licensed natural organic reduction facilities 
1082.2 	shall develop, implement, and maintain an identification procedure whereby dead human 
1082.3 	bodies can be identified from the time the natural organic reduction facility accepts delivery 
1082.4 	of the body until the naturally reduced remains are released to an authorized party. After 
1082.5 	natural organic reduction, an identifying disk, tab, or other permanent label shall be placed 
1082.6 	within the naturally reduced remains container or containers before the remains are released 
1082.7 	from the natural organic reduction facility. Each identification disk, tab, or label shall have 
1082.8 	a number that shall be recorded on all paperwork regarding the decedent. This procedure 
1082.9 	shall be designed to reasonably ensure that the proper body is naturally reduced and that 
1082.10 	the remains are returned to the appropriate party. Loss of all or part of the remains or the 
1082.11 	inability to individually identify the remains is a violation of this subdivision.
1082.12 		Subd. 17.Natural organic reduction vessel for human remains. A licensed natural 
1082.13 	organic reduction facility shall knowingly naturally reduce only dead human bodies or 
1082.14 	human remains in a natural organic reduction vessel.
1082.15 		Subd. 18.Natural organic reduction procedures; privacy. The final disposition of 
1082.16 	dead human bodies by natural organic reduction shall be done in privacy. Unless there is 
1082.17 	written authorization from the person with the legal right to control the final disposition, 
1082.18 	only authorized natural organic reduction facility personnel shall be permitted in the natural 
1082.19 	organic reduction area while any human body is awaiting placement or being placed in a 
1082.20 	natural organic reduction vessel, being removed from the vessel, or being processed for 
1082.21 	placement for final reduction. This does not prohibit an in-person laying-in ceremony to 
1082.22 	honor the deceased and the transition prior to the placement.
1082.23 		Subd. 19.Natural organic reduction procedures; commingling of bodies 
1082.24 	prohibited. Except with the express written permission of the person with the legal right 
1082.25 	to control the final disposition, no natural organic reduction facility shall naturally reduce 
1082.26 	more than one dead human body at the same time and in the same natural organic reduction 
1082.27 	vessel or introduce a second dead human body into same natural organic reduction vessel 
1082.28 	until reasonable efforts have been employed to remove all fragments of remains from the 
1082.29 	preceding natural organic reduction. This subdivision does not apply where commingling 
1082.30 	of human remains during natural organic reduction is otherwise provided by law. The fact 
1082.31 	that there is incidental and unavoidable residue in the natural organic reduction vessel used 
1082.32 	in a prior natural organic reduction is not a violation of this subdivision.
1082.33 		Subd. 20.Natural organic reduction procedures; removal from natural organic 
1082.34 	reduction vessel. Upon completion of the natural organic reduction process, reasonable 
1082.35 	efforts shall be made to remove from the natural organic reduction vessel all the recoverable 
1083.1 	remains. The remains shall be transported to the processing area, and any non-naturally 
1083.2 	reducible materials or items shall be separated from the remains and disposed of, in any 
1083.3 	lawful manner, by the natural organic reduction facility.
1083.4 		Subd. 21.Natural organic reduction procedures; processing remains. The remains 
1083.5 	that remain intact shall be reduced by a motorized mechanical processor to a granulated 
1083.6 	appearance. The granulated remains and the rest of the naturally reduced remains shall be 
1083.7 	returned to a natural organic reduction vessel for final reduction. The remains shall be 
1083.8 	considered a dead human body until after the final reduction.
1083.9 		Subd. 22.Natural organic reduction procedures; commingling of remains 
1083.10 	prohibited. Except with the express written permission of the person with the legal right 
1083.11 	to control the final deposition or otherwise provided by law, no natural organic reduction 
1083.12 	facility shall mechanically process the remains of more than one body at a time in the same 
1083.13 	mechanical processor or introduce the remains of a second body into a mechanical processor 
1083.14 	until reasonable efforts have been employed to remove all fragments of remains already in 
1083.15 	the processor. The fact that there is incidental and unavoidable residue in the mechanical 
1083.16 	processor is not a violation of this subdivision.
1083.17 		Subd. 23.Natural organic reduction procedures; testing naturally reduced 
1083.18 	remains. A natural organic reduction facility must:
1083.19 	(1) ensure that the material in the natural organic reduction vessel naturally reaches and 
1083.20 	maintains a minimum temperature of 131 degrees Fahrenheit for a minimum of 72 
1083.21 	consecutive hours during the process of natural organic reduction;
1083.22 	(2) analyze each instance of the naturally reduced remains for physical contaminants, 
1083.23 	including but not limited to intact bone, dental fillings, and medical implants, and ensure 
1083.24 	naturally reduced remains have less than 0.01 mg/kg dry weight of any physical contaminants;
1083.25 	(3) collect material samples for analysis that are representative of each instance of natural 
1083.26 	organic reduction, using a sampling method such as those described in the U.S. Composting 
1083.27 	Council 2002 Test Methods for the Examination of Composting and Compost, method 
1083.28 	02.01-A through E;
1083.29 	(4) develop and use a natural organic reduction process in which the naturally reduced 
1083.30 	remains from the process do not exceed the following limits:

1083.31
1083.32		Metals and other testing 
parameters
	Limit (mg/kg dry weight), unless otherwise 
specified
	
1083.341083.33
		Fecal coliform
	Less than 1,000 most probable number per gram 
of total solids (dry weight)
	
1084.21084.1
		Salmonella
	Less than 3 most probable number per 4 grams 
of total solids (dry weight)
	
1084.3		Arsenic
	Less than or equal to 11 ppm
	
1084.4		Cadmium
	Less than or equal to 7.1 ppm
	
1084.5		Lead
	Less than or equal to 150 ppm
	
1084.6		Mercury
	Less than or equal to 5 ppm
	
1084.7		Selenium
	Less than or equal to 18 ppm;
	
1084.8 	(5) analyze, using a third-party laboratory, the natural organic reduction facility's material 
1084.9 	samples of naturally reduced remains according to the following schedule:
1084.10 	(i) the natural organic reduction facility must analyze each of the first 20 instances of 
1084.11 	naturally reduced remains for the parameters in clause (4);
1084.12 	(ii) if any of the first 20 instances of naturally reduced remains yield results exceeding 
1084.13 	the limits in clause (4), the natural organic reduction facility must conduct appropriate 
1084.14 	processes to correct the levels of the substances in clause (4) and have the resultant remains 
1084.15 	tested to ensure they fall within the identified limits;
1084.16 	(iii) if any of the first 20 instances of naturally reduced remains yield results exceeding 
1084.17 	the limits in clause (4), the natural organic reduction facility must analyze each additional 
1084.18 	instance of naturally reduced remains for the parameters in clause (4) until a total of 20 
1084.19 	samples, not including those from remains that were reprocessed as required in item (ii), 
1084.20 	have yielded results within the limits in clause (4) on initial testing;
1084.21 	(iv) after 20 material samples of naturally reduced remains have met the limits in clause 
1084.22 	(4), the natural organic reduction facility must analyze at least 25 percent of the natural 
1084.23 	organic reduction facility's monthly instances of naturally reduced remains for the parameters 
1084.24 	in clause (4) until 80 total material samples of naturally reduced remains are found to meet 
1084.25 	the limits in clause (4), not including any samples that required reprocessing to meet those 
1084.26 	limits; and
1084.27 	(v) after 80 material samples of naturally reduced remains are found to meet the limits 
1084.28 	in clause (4), the natural organic reduction facility must analyze at least one randomly chosen 
1084.29 	instance of naturally reduced remains each month for the parameters in clause (4). If fecal 
1084.30 	coliform or salmonella in the tested remains exceeds the limit for that substance in clause 
1084.31 	(4), the natural organic reduction facility must analyze each subsequent instance of naturally 
1084.32 	reduced remains for fecal coliform and salmonella until ten total material samples are found 
1084.33 	to meet the limits for those substances in clause (4) on initial testing, demonstrating the 
1084.34 	natural organic reduction process was effectively corrected;
1085.1 	(6) comply with any testing requirements established by the commissioner for content 
1085.2 	parameters in addition to those specified in clause (4);
1085.3 	(7) not release any naturally reduced remains that exceed the limits in clause (4); and
1085.4 	(8) prepare, maintain, and provide to the commissioner upon request, a report for each 
1085.5 	calendar year detailing the natural organic reduction facility's activities during the previous 
1085.6 	calendar year. The report must include the following information:
1085.7 	(i) the name and address of the natural organic reduction facility;
1085.8 	(ii) the calendar year covered by the report;
1085.9 	(iii) the annual quantity of naturally reduced remains;
1085.10 	(iv) the results of any laboratory analyses of naturally reduced remains; and
1085.11 	(v) any additional information required by the commissioner.
1085.12 		Subd. 24.Natural organic reduction procedures; use of more than one naturally 
1085.13 	reduced remains container. If the naturally reduced remains are to be separated into two 
1085.14 	or more naturally reduced remains containers according to the directives provided in the 
1085.15 	written authorization for natural organic reduction, all of the containers shall contain duplicate 
1085.16 	identification disks, tabs, or permanent labels and all paperwork regarding the given body 
1085.17 	shall include a notation of the number of and disposition of each container, as provided in 
1085.18 	the written authorization.
1085.19 		Subd. 25.Natural organic reduction procedures; disposition of accumulated 
1085.20 	residue. Every natural organic reduction facility shall provide for the removal and disposition 
1085.21 	of any accumulated residue from any natural organic reduction vessel, mechanical processor, 
1085.22 	or other equipment used in natural organic reduction. Disposition of accumulated residue 
1085.23 	shall be by any lawful manner deemed appropriate.
1085.24 		Subd. 26.Natural organic reduction procedures; release of naturally reduced 
1085.25 	remains. Following completion of the natural organic reduction process, the inurned naturally 
1085.26 	reduced remains shall be released according to the instructions given on the written 
1085.27 	authorization for natural organic reduction. If the remains are to be shipped, they must be 
1085.28 	securely packaged and transported by a method that has an internal tracing system available 
1085.29 	and which provides a receipt signed by the person accepting delivery. Where there is a 
1085.30 	dispute over release or disposition of the naturally reduced remains, a natural organic 
1085.31 	reduction facility may deposit the naturally reduced remains in accordance with the directives 
1085.32 	of a court of competent jurisdiction pending resolution of the dispute or retain the naturally 
1085.33 	reduced remains until the person with the legal right to control disposition presents 
1086.1 	satisfactory indication that the dispute is resolved. A natural organic reduction facility must 
1086.2 	make every effort to ensure naturally reduced remains are not sold or used for commercial 
1086.3 	purposes.
1086.4 		Subd. 27.Unclaimed naturally reduced remains. If, after 30 calendar days following 
1086.5 	the inurnment, the naturally reduced remains are not claimed or disposed of according to 
1086.6 	the written authorization for natural organic reduction, the natural organic reduction facility 
1086.7 	shall give written notice, by certified mail, to the person with the legal right to control the 
1086.8 	final disposition or a legal designee, that the naturally reduced remains are unclaimed and 
1086.9 	requesting further release directions. Should the naturally reduced remains be unclaimed 
1086.10 	120 calendar days following the mailing of the written notification, the natural organic 
1086.11 	reduction facility may return the remains to the earth respectfully in any lawful manner 
1086.12 	deemed appropriate.
1086.13 		Subd. 28.Required records. Every natural organic reduction facility shall create and 
1086.14 	maintain on its premises or other business location in Minnesota an accurate record of every 
1086.15 	natural organic reduction provided. The record shall include all of the following information 
1086.16 	for each natural organic reduction:
1086.17 	(1) the name of the person or funeral establishment delivering the body for natural 
1086.18 	organic reduction;
1086.19 	(2) the name of the deceased and the identification number assigned to the body;
1086.20 	(3) the date of acceptance of delivery;
1086.21 	(4) the names of the operator of the natural organic reduction process and mechanical 
1086.22 	processor operator;
1086.23 	(5) the times and dates that the body was placed in and removed from the natural organic 
1086.24 	reduction vessel;
1086.25 	(6) the time and date that processing and inurnment of the naturally reduced remains 
1086.26 	was completed;
1086.27 	(7) the time, date, and manner of release of the naturally reduced remains;
1086.28 	(8) the name and address of the person who signed the authorization for natural organic 
1086.29 	reduction;
1086.30 	(9) all supporting documentation, including any transit or disposition permits, a photocopy 
1086.31 	of the death record, and the authorization for natural organic reduction; and
1086.32 	(10) the type of natural organic reduction vessel.
1087.1 		Subd. 29.Retention of records. Records required under subdivision 28 shall be 
1087.2 	maintained for a period of three calendar years after the release of the naturally reduced 
1087.3 	remains. Following this period and subject to any other laws requiring retention of records, 
1087.4 	the natural organic reduction facility may then place the records in storage or reduce them 
1087.5 	to microfilm, a digital format, or any other method that can produce an accurate reproduction 
1087.6 	of the original record, for retention for a period of ten calendar years from the date of release 
1087.7 	of the naturally reduced remains. At the end of this period and subject to any other laws 
1087.8 	requiring retention of records, the natural organic reduction facility may destroy the records 
1087.9 	by shredding, incineration, or any other manner that protects the privacy of the individuals 
1087.10 	identified.

1087.11 	Sec. 51. STILLBIRTH PREVENTION THROUGH TRACKING FETAL 
1087.12 	MOVEMENT PILOT PROGRAM.
 1087.13 		Subdivision 1.Grant. The commissioner of health shall issue a grant to a grant recipient 
1087.14 	to support a stillbirth prevention through tracking fetal movement pilot program and to 
1087.15 	provide evidence of the efficacy of tracking fetal movements in preventing stillbirths in 
1087.16 	Minnesota. The pilot program shall operate in fiscal years 2025, 2026, and 2027.
1087.17 		Subd. 2.Use of grant funds. The grant recipient must use grant funds:
1087.18 	(1) for activities to ensure that expectant parents in Minnesota receive information about 
1087.19 	the importance of tracking fetal movement in the third trimester of pregnancy, by providing 
1087.20 	evidence-based information to organizations that include but are not limited to community 
1087.21 	organizations, hospitals, birth centers, maternal health providers, and higher education 
1087.22 	institutions that educate maternal health providers;
1087.23 	(2) to provide maternal health providers and expectant parents in Minnesota with access 
1087.24 	to free, evidence-based educational materials on fetal movement tracking, including 
1087.25 	brochures, posters, reminder cards, continuing education materials, and digital resources;
1087.26 	(3) to assist in raising awareness with health care providers about:
1087.27 	(i) the availability of free fetal movement tracking education for providers through an 
1087.28 	initial education campaign;
1087.29 	(ii) the importance of tracking fetal movement in the third trimester of pregnancy by 
1087.30 	offering at least three to five webinars and conferences per year; and
1087.31 	(iii) the importance of tracking fetal movement in the third trimester of pregnancy through 
1087.32 	provider participation in a public relations campaign; and
1088.1 	(4) to assist in raising public awareness about the availability of free fetal movement 
1088.2 	tracking resources through social media marketing and traditional marketing throughout 
1088.3 	Minnesota.
1088.4 		Subd. 3.Data-sharing and monitoring. (a) During the operation of the pilot program, 
1088.5 	the grant recipient shall provide the following information to the commissioner on at least 
1088.6 	a quarterly basis:
1088.7 	(1) the number of educational materials distributed under the pilot program, broken 
1088.8 	down by zip code and the type of facility or organization that ordered the materials, including 
1088.9 	hospitals, birth centers, maternal health clinics, WIC clinics, and community organizations;
1088.10 	(2) the number of fetal movement tracking application downloads that may be attributed 
1088.11 	to the pilot program, broken down by zip code;
1088.12 	(3) the reach of and engagement with marketing materials provided under the pilot 
1088.13 	program; and
1088.14 	(4) provider attendance and participation in awareness-raising events under the pilot 
1088.15 	program, such as webinars and conferences.
1088.16 	(b) Each year during the pilot program and at the conclusion of the pilot program, the 
1088.17 	grant recipient shall provide the commissioner with an annual report that includes information 
1088.18 	on how the pilot program has affected:
1088.19 	(1) fetal death rates in Minnesota;
1088.20 	(2) fetal death rates in Minnesota among American Indian, Black, Hispanic, and Asian 
1088.21 	Pacific Islander populations; and
1088.22 	(3) fetal death rates by region in Minnesota.
1088.23 		Subd. 4.Reports. The commissioner must submit to the legislative committees with 
1088.24 	jurisdiction over public health an interim report and a final report on the operation of the 
1088.25 	pilot program. The interim report must be submitted by December 1, 2025, and the final 
1088.26 	report must be submitted by December 1, 2027. Each report must at least describe the pilot 
1088.27 	program's operations and provide information, to the extent available, on the effectiveness 
1088.28 	of the pilot program in preventing stillbirths in Minnesota, including lessons learned in 
1088.29 	implementing the pilot program and recommendations for future action.

1089.1 	ARTICLE 59
1089.2 	DEPARTMENT OF HEALTH POLICY

1089.3 	Section 1. Minnesota Statutes 2022, section 62D.14, subdivision 1, is amended to read:
1089.4 		Subdivision 1.Examination authority. The commissioner of health may make an 
1089.5 	examination of the affairs of any health maintenance organization and its contracts, 
1089.6 	agreements, or other arrangements with any participating entity as often as the commissioner 
1089.7 	of health deems necessary for the protection of the interests of the people of this state, but 
1089.8 	not less frequently than once every three five years. Examinations of participating entities 
1089.9 	pursuant to this subdivision shall be limited to their dealings with the health maintenance 
1089.10 	organization and its enrollees, except that examinations of major participating entities may 
1089.11 	include inspection of the entity's financial statements kept in the ordinary course of business. 
1089.12 	The commissioner may require major participating entities to submit the financial statements 
1089.13 	directly to the commissioner. Financial statements of major participating entities are subject 
1089.14 	to the provisions of section 13.37, subdivision 1, clause (b), upon request of the major 
1089.15 	participating entity or the health maintenance organization with which it contracts.

1089.16 	Sec. 2. [62J.461] 340B COVERED ENTITY REPORT.
1089.17 		Subdivision 1.Definitions. (a) For purposes of this section, the following definitions 
1089.18 	apply.
1089.19 	(b) "340B covered entity" or "covered entity" means a covered entity as defined in United 
1089.20 	States Code, title 42, section 256b(a)(4), with a service address in Minnesota as of January 
1089.21 	1 of the reporting year. 340B covered entity includes all entity types and grantees. All 
1089.22 	facilities that are identified as child sites or grantee associated sites under the federal 340B 
1089.23 	Drug Pricing Program are considered part of the 340B covered entity.
1089.24 	(c) "340B Drug Pricing Program" or "340B program" means the drug discount program 
1089.25 	established under United States Code, title 42, section 256b.
1089.26 	(d) "340B entity type" is the designation of the 340B covered entity according to the 
1089.27 	entity types specified in United States Code, title 42, section 256b(a)(4).
1089.28 	(e) "340B ID" is the unique identification number provided by the Health Resources 
1089.29 	and Services Administration to identify a 340B-eligible entity in the 340B Office of Pharmacy 
1089.30 	Affairs Information System.
1089.31 	(f) "Contract pharmacy" means a pharmacy with which a 340B covered entity has an 
1089.32 	arrangement to dispense drugs purchased under the 340B Drug Pricing Program.
1090.1 	(g) "Pricing unit" means the smallest dispensable amount of a prescription drug product 
1090.2 	that can be dispensed or administered.
1090.3 		Subd. 2.Current registration. Beginning April 1, 2024, each 340B covered entity must 
1090.4 	maintain a current registration with the commissioner in a form and manner prescribed by 
1090.5 	the commissioner. The registration must include the following information:
1090.6 	(1) the name of the 340B covered entity;
1090.7 	(2) the 340B ID of the 340B covered entity;
1090.8 	(3) the servicing address of the 340B covered entity; and
1090.9 	(4) the 340B entity type of the 340B covered entity.
1090.10 		Subd. 3.Reporting by covered entities to the commissioner. (a) Each 340B covered 
1090.11 	entity shall report to the commissioner by April 1 of each year the following information 
1090.12 	for transactions conducted by the 340B covered entity or on its behalf, and related to its 
1090.13 	participation in the federal 340B program for the previous calendar year:
1090.14 	(1) the aggregated acquisition cost for prescription drugs obtained under the 340B 
1090.15 	program;
1090.16 	(2) the aggregated payment amount received for drugs obtained under the 340B program 
1090.17 	and dispensed or administered to patients;
1090.18 	(3) the number of pricing units dispensed or administered for prescription drugs described 
1090.19 	in clause (2); and
1090.20 	(4) the aggregated payments made:
1090.21 	(i) to contract pharmacies to dispense drugs obtained under the 340B program;
1090.22 	(ii) to any other entity that is not the covered entity and is not a contract pharmacy for 
1090.23 	managing any aspect of the covered entity's 340B program; and
1090.24 	(iii) for all other expenses related to administering the 340B program.
1090.25 	The information under clauses (2) and (3) must be reported by payer type, including but 
1090.26 	not limited to commercial insurance, medical assistance, MinnesotaCare, and Medicare, in 
1090.27 	the form and manner prescribed by the commissioner.
1090.28 	(b) For covered entities that are hospitals, the information required under paragraph (a), 
1090.29 	clauses (1) to (3), must also be reported at the national drug code level for the 50 most 
1090.30 	frequently dispensed or administered drugs by the facility under the 340B program.
1091.1 	(c) Data submitted to the commissioner under paragraphs (a) and (b) are classified as 
1091.2 	nonpublic data, as defined in section 13.02, subdivision 9.
1091.3 		Subd. 4.Enforcement and exceptions. (a) Any health care entity subject to reporting 
1091.4 	under this section that fails to provide data in the form and manner prescribed by the 
1091.5 	commissioner is subject to a fine paid to the commissioner of up to $500 for each day the 
1091.6 	data are past due. Any fine levied against the entity under this subdivision is subject to the 
1091.7 	contested case and judicial review provisions of sections 14.57 and 14.69.
1091.8 	(b) The commissioner may grant an entity an extension of or exemption from the reporting 
1091.9 	obligations under this subdivision, upon a showing of good cause by the entity.
1091.10 		Subd. 5.Reports to the legislature. By November 15, 2024, and by November 15 of 
1091.11 	each year thereafter, the commissioner shall submit to the chairs and ranking minority 
1091.12 	members of the legislative committees with jurisdiction over health care finance and policy, 
1091.13 	a report that aggregates the data submitted under subdivision 3, paragraphs (a) and (b). The 
1091.14 	following information must be included in the report for all 340B entities whose net 340B 
1091.15 	revenue constitutes a significant share, as determined by the commissioner, of all net 340B 
1091.16 	revenue across all 340B covered entities in Minnesota:
1091.17 	(1) the information submitted under subdivision 2; and
1091.18 	(2) for each 340B entity identified in subdivision 2, that entity's 340B net revenue as 
1091.19 	calculated using the data submitted under subdivision 3, paragraph (a), with net revenue 
1091.20 	being subdivision 3, paragraph (a), clause (2), less the sum of subdivision 3, paragraph (a), 
1091.21 	clauses (1) and (4).
1091.22 	For all other entities, the data in the report must be aggregated to the entity type or groupings 
1091.23 	of entity types in a manner that prevents the identification of an individual entity and any 
1091.24 	entity's specific data value reported for an individual data element.

1091.25 	Sec. 3. Minnesota Statutes 2022, section 62J.61, subdivision 5, is amended to read:
1091.26 		Subd. 5.Biennial review of rulemaking procedures and rules Opportunity for 
1091.27 	comment. The commissioner shall biennially seek comments from affected parties maintain 
1091.28 	an email address for submission of comments from interested parties to provide input about 
1091.29 	the effectiveness of and continued need for the rulemaking procedures set out in subdivision 
1091.30 	2 and about the quality and effectiveness of rules adopted using these procedures. The 
1091.31 	commissioner shall seek comments by holding a meeting and by publishing a notice in the 
1091.32 	State Register that contains the date, time, and location of the meeting and a statement that 
1091.33 	invites oral or written comments. The notice must be published at least 30 days before the 
1092.1 	meeting date. The commissioner shall write a report summarizing the comments and shall 
1092.2 	submit the report to the Minnesota Health Data Institute and to the Minnesota Administrative 
1092.3 	Uniformity Committee by January 15 of every even-numbered year may seek additional 
1092.4 	input and provide additional opportunities for input as needed.

1092.5 	Sec. 4. Minnesota Statutes 2023 Supplement, section 62J.84, subdivision 10, is amended 
1092.6 	to read:
1092.7 		Subd. 10.Notice of prescription drugs of substantial public interest. (a) No later than 
1092.8 	January 31, 2024, and quarterly thereafter, the commissioner shall produce and post on the 
1092.9 	department's website a list of prescription drugs that the commissioner determines to represent 
1092.10 	a substantial public interest and for which the commissioner intends to request data under 
1092.11 	subdivisions 11 to 14, subject to paragraph (c). The commissioner shall base its inclusion 
1092.12 	of prescription drugs on any information the commissioner determines is relevant to providing 
1092.13 	greater consumer awareness of the factors contributing to the cost of prescription drugs in 
1092.14 	the state, and the commissioner shall consider drug product families that include prescription 
1092.15 	drugs:
1092.16 	(1) that triggered reporting under subdivision 3 or 4 during the previous calendar quarter;
1092.17 	(2) for which average claims paid amounts exceeded 125 percent of the price as of the 
1092.18 	claim incurred date during the most recent calendar quarter for which claims paid amounts 
1092.19 	are available; or
1092.20 	(3) that are identified by members of the public during a public comment process.
1092.21 	(b) Not sooner than 30 days after publicly posting the list of prescription drugs under 
1092.22 	paragraph (a), the department shall notify, via email, reporting entities registered with the 
1092.23 	department of the requirement to report under subdivisions 11 to 14.
1092.24 	(c) The commissioner must not designate more than 500 prescription drugs as having a 
1092.25 	substantial public interest in any one notice.
1092.26 	(d) Notwithstanding subdivision 16, the commissioner is exempt from chapter 14, 
1092.27 	including section 14.386, in implementing this subdivision.

1092.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

1092.29 	Sec. 5. Minnesota Statutes 2022, section 144.05, subdivision 6, is amended to read:
1092.30 		Subd. 6.Reports on interagency agreements and intra-agency transfers. The 
1092.31 	commissioner of health shall provide quarterly reports to the chairs and ranking minority 
1093.1 	members of the legislative committees with jurisdiction over health and human services 
1093.2 	policy and finance on:
1093.3 	(1) interagency agreements or service-level agreements and any renewals or extensions 
1093.4 	of existing interagency or service-level agreements with a state department under section 
1093.5 	15.01, state agency under section 15.012, or the Department of Information Technology 
1093.6 	Services, with a value of more than $100,000, or related agreements with the same department 
1093.7 	or agency with a cumulative value of more than $100,000; and
1093.8 	(2) transfers of appropriations of more than $100,000 between accounts within or between 
1093.9 	agencies.
1093.10 	The report must include the statutory citation authorizing the agreement, transfer or dollar 
1093.11 	amount, purpose, and effective date of the agreement, and duration of the agreement, and 
1093.12 	a copy of the agreement.

1093.13 	Sec. 6. Minnesota Statutes 2022, section 144.05, subdivision 7, is amended to read:
1093.14 		Subd. 7.Expiration of report mandates. (a) If the submission of a report by the 
1093.15 	commissioner of health to the legislature is mandated by statute and the enabling legislation 
1093.16 	does not include a date for the submission of a final report, the mandate to submit the report 
1093.17 	shall expire in accordance with this section.
1093.18 	(b) If the mandate requires the submission of an annual report and the mandate was 
1093.19 	enacted before January 1, 2021, the mandate shall expire on January 1, 2023. If the mandate 
1093.20 	requires the submission of a biennial or less frequent report and the mandate was enacted 
1093.21 	before January 1, 2021, the mandate shall expire on January 1, 2024.
1093.22 	(c) Any reporting mandate enacted on or after January 1, 2021, shall expire three years 
1093.23 	after the date of enactment if the mandate requires the submission of an annual report and 
1093.24 	shall expire five years after the date of enactment if the mandate requires the submission 
1093.25 	of a biennial or less frequent report, unless the enacting legislation provides for a different 
1093.26 	expiration date.
1093.27 	(d) The commissioner shall submit a list to the chairs and ranking minority members of 
1093.28 	the legislative committees with jurisdiction over health by February 15 of each year, 
1093.29 	beginning February 15, 2022, of all reports set to expire during the following calendar year 
1093.30 	in accordance with this section. The mandate to submit a report to the legislature under this 
1093.31 	paragraph does not expire.

1093.32 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2024.

1094.1 	Sec. 7. Minnesota Statutes 2023 Supplement, section 144.0526, subdivision 1, is amended 
1094.2 	to read:
1094.3 		Subdivision 1.Establishment. The commissioner of health shall establish the Minnesota 
1094.4 	One Health Antimicrobial Stewardship Collaborative. The commissioner shall appoint hire
1094.5 	a director to execute operations, conduct health education, and provide technical assistance.

1094.6 	Sec. 8. Minnesota Statutes 2022, section 144.058, is amended to read:
1094.7 	144.058 INTERPRETER SERVICES QUALITY INITIATIVE.
1094.8 	(a) The commissioner of health shall establish a voluntary statewide roster, and develop 
1094.9 	a plan for a registry and certification process for interpreters who provide high quality, 
1094.10 	spoken language health care interpreter services. The roster, registry, and certification 
1094.11 	process shall be based on the findings and recommendations set forth by the Interpreter 
1094.12 	Services Work Group required under Laws 2007, chapter 147, article 12, section 13.
1094.13 	(b) By January 1, 2009, the commissioner shall establish a roster of all available 
1094.14 	interpreters to address access concerns, particularly in rural areas.
1094.15 	(c) By January 15, 2010, the commissioner shall:
1094.16 	(1) develop a plan for a registry of spoken language health care interpreters, including:
1094.17 	(i) development of standards for registration that set forth educational requirements, 
1094.18 	training requirements, demonstration of language proficiency and interpreting skills, 
1094.19 	agreement to abide by a code of ethics, and a criminal background check;
1094.20 	(ii) recommendations for appropriate alternate requirements in languages for which 
1094.21 	testing and training programs do not exist;
1094.22 	(iii) recommendations for appropriate fees; and
1094.23 	(iv) recommendations for establishing and maintaining the standards for inclusion in 
1094.24 	the registry; and
1094.25 	(2) develop a plan for implementing a certification process based on national testing and 
1094.26 	certification processes for spoken language interpreters 12 months after the establishment 
1094.27 	of a national certification process.
1094.28 	(d) The commissioner shall consult with the Interpreter Stakeholder Group of the Upper 
1094.29 	Midwest Translators and Interpreters Association for advice on the standards required to 
1094.30 	plan for the development of a registry and certification process.
1095.1 	(e) The commissioner shall charge an annual fee of $50 to include an interpreter in the 
1095.2 	roster. Fee revenue shall be deposited in the state government special revenue fund. All fees 
1095.3 	are nonrefundable.

1095.4 	Sec. 9. Minnesota Statutes 2022, section 144.0724, subdivision 2, is amended to read:
1095.5 		Subd. 2.Definitions. For purposes of this section, the following terms have the meanings 
1095.6 	given.
1095.7 	(a) "Assessment reference date" or "ARD" means the specific end point for look-back 
1095.8 	periods in the MDS assessment process. This look-back period is also called the observation 
1095.9 	or assessment period.
1095.10 	(b) "Case mix index" means the weighting factors assigned to the RUG-IVcase mix 
1095.11 	reimbursement classifications determined by an assessment.
1095.12 	(c) "Index maximization" means classifying a resident who could be assigned to more 
1095.13 	than one category, to the category with the highest case mix index.
1095.14 	(d) "Minimum Data Set" or "MDS" means a core set of screening, clinical assessment, 
1095.15 	and functional status elements, that include common definitions and coding categories 
1095.16 	specified by the Centers for Medicare and Medicaid Services and designated by the 
1095.17 	Department of Health.
1095.18 	(e) "Representative" means a person who is the resident's guardian or conservator, the 
1095.19 	person authorized to pay the nursing home expenses of the resident, a representative of the 
1095.20 	Office of Ombudsman for Long-Term Care whose assistance has been requested, or any 
1095.21 	other individual designated by the resident.
1095.22 	(f) "Resource utilization groups" or "RUG" means the system for grouping a nursing 
1095.23 	facility's residents according to their clinical and functional status identified in data supplied 
1095.24 	by the facility's Minimum Data Set.
1095.25 	(g) (f) "Activities of daily living" includes personal hygiene, dressing, bathing, 
1095.26 	transferring, bed mobility, locomotion, eating, and toileting.
1095.27 	(h) (g) "Nursing facility level of care determination" means the assessment process that 
1095.28 	results in a determination of a resident's or prospective resident's need for nursing facility 
1095.29 	level of care as established in subdivision 11 for purposes of medical assistance payment 
1095.30 	of long-term care services for:
1095.31 	(1) nursing facility services under section 256B.434 or chapter 256R;
1095.32 	(2) elderly waiver services under chapter 256S;
1096.1 	(3) CADI and BI waiver services under section 256B.49; and
1096.2 	(4) state payment of alternative care services under section 256B.0913.

1096.3 	Sec. 10. Minnesota Statutes 2022, section 144.0724, subdivision 3a, is amended to read:
1096.4 		Subd. 3a.Resident reimbursement case mix reimbursement classifications beginning 
1096.5 	January 1, 2012. (a) Beginning January 1, 2012, Resident reimbursement case mix 
1096.6 	reimbursement classifications shall be based on the Minimum Data Set, version 3.0 
1096.7 	assessment instrument, or its successor version mandated by the Centers for Medicare and 
1096.8 	Medicaid Services that nursing facilities are required to complete for all residents. The 
1096.9 	commissioner of health shall establish resident classifications according to the RUG-IV, 
1096.10 	48 group, resource utilization groups. Resident classification must be established based on 
1096.11 	the individual items on the Minimum Data Set, which must be completed according to the 
1096.12 	Long Term Care Facility Resident Assessment Instrument User's Manual Version 3.0 or its 
1096.13 	successor issued by the Centers for Medicare and Medicaid Services. Case mix 
1096.14 	reimbursement classifications shall also be based on assessments required under subdivision 
1096.15 	4. Assessments must be completed according to the Long Term Care Facility Resident 
1096.16 	Assessment Instrument User's Manual Version 3.0 or a successor manual issued by the 
1096.17 	Centers for Medicare and Medicaid Services. The optional state assessment must be 
1096.18 	completed according to the OSA Manual Version 1.0 v.2.
1096.19 	(b) Each resident must be classified based on the information from the Minimum Data 
1096.20 	Set according to the general categories issued by the Minnesota Department of Health, 
1096.21 	utilized for reimbursement purposes.

1096.22 	Sec. 11. Minnesota Statutes 2022, section 144.0724, subdivision 4, is amended to read:
1096.23 		Subd. 4.Resident assessment schedule. (a) A facility must conduct and electronically 
1096.24 	submit to the federal database MDS assessments that conform with the assessment schedule 
1096.25 	defined by the Long Term Care Facility Resident Assessment Instrument User's Manual, 
1096.26 	version 3.0, or its successor issued by the Centers for Medicare and Medicaid Services. The 
1096.27 	commissioner of health may substitute successor manuals or question and answer documents 
1096.28 	published by the United States Department of Health and Human Services, Centers for 
1096.29 	Medicare and Medicaid Services, to replace or supplement the current version of the manual 
1096.30 	or document.
1096.31 	(b) The assessments required under the Omnibus Budget Reconciliation Act of 1987 
1096.32 	(OBRA) used to determine a case mix reimbursement classification for reimbursement
1096.33 	include:
1097.1 	(1) a new admission comprehensive assessment, which must have an assessment reference 
1097.2 	date (ARD) within 14 calendar days after admission, excluding readmissions;
1097.3 	(2) an annual comprehensive assessment, which must have an ARD within 92 days of 
1097.4 	a previous quarterly review assessment or a previous comprehensive assessment, which 
1097.5 	must occur at least once every 366 days;
1097.6 	(3) a significant change in status comprehensive assessment, which must have an ARD 
1097.7 	within 14 days after the facility determines, or should have determined, that there has been 
1097.8 	a significant change in the resident's physical or mental condition, whether an improvement 
1097.9 	or a decline, and regardless of the amount of time since the last comprehensive assessment 
1097.10 	or quarterly review assessment;
1097.11 	(4) a quarterly review assessment must have an ARD within 92 days of the ARD of the 
1097.12 	previous quarterly review assessment or a previous comprehensive assessment;
1097.13 	(5) any significant correction to a prior comprehensive assessment, if the assessment 
1097.14 	being corrected is the current one being used for RUG reimbursement classification;
1097.15 	(6) any significant correction to a prior quarterly review assessment, if the assessment 
1097.16 	being corrected is the current one being used for RUG reimbursement classification; and
1097.17 	(7) a required significant change in status assessment when:
1097.18 	(i) all speech, occupational, and physical therapies have ended. If the most recent OBRA 
1097.19 	comprehensive or quarterly assessment completed does not result in a rehabilitation case 
1097.20 	mix classification, then the significant change in status assessment is not required. The ARD 
1097.21 	of this assessment must be set on day eight after all therapy services have ended; and
1097.22 	(ii) isolation for an infectious disease has ended. If isolation was not coded on the most 
1097.23 	recent OBRA comprehensive or quarterly assessment completed, then the significant change 
1097.24 	in status assessment is not required. The ARD of this assessment must be set on day 15 after 
1097.25 	isolation has ended; and
1097.26 	(8) (7) any modifications to the most recent assessments under clauses (1) to (7) (6).
1097.27 	(c) The optional state assessment must accompany all OBRA assessments. The optional 
1097.28 	state assessment is also required to determine reimbursement when:
1097.29 	(i) all speech, occupational, and physical therapies have ended. If the most recent optional 
1097.30 	state assessment completed does not result in a rehabilitation case mix reimbursement 
1097.31 	classification, then the optional state assessment is not required. The ARD of this assessment 
1097.32 	must be set on day eight after all therapy services have ended; and
1098.1 	(ii) isolation for an infectious disease has ended. If isolation was not coded on the most 
1098.2 	recent optional state assessment completed, then the optional state assessment is not required. 
1098.3 	The ARD of this assessment must be set on day 15 after isolation has ended.
1098.4 	(c) (d) In addition to the assessments listed in paragraph paragraphs (b) and (c), the 
1098.5 	assessments used to determine nursing facility level of care include the following:
1098.6 	(1) preadmission screening completed under section 256.975, subdivisions 7a to 7c, by 
1098.7 	the Senior LinkAge Line or other organization under contract with the Minnesota Board on 
1098.8 	Aging; and
1098.9 	(2) a nursing facility level of care determination as provided for under section 256B.0911, 
1098.10 	subdivision 26, as part of a face-to-face long-term care consultation assessment completed 
1098.11 	under section 256B.0911, by a county, tribe, or managed care organization under contract 
1098.12 	with the Department of Human Services.

1098.13 	Sec. 12. Minnesota Statutes 2022, section 144.0724, subdivision 6, is amended to read:
1098.14 		Subd. 6.Penalties for late or nonsubmission. (a) A facility that fails to complete or 
1098.15 	submit an assessment according to subdivisions 4 and 5 for a RUG-IV case mix 
1098.16 	reimbursement classification within seven days of the time requirements listed in the 
1098.17 	Long-Term Care Facility Resident Assessment Instrument User's Manual when the 
1098.18 	assessment is due is subject to a reduced rate for that resident. The reduced rate shall be the 
1098.19 	lowest rate for that facility. The reduced rate is effective on the day of admission for new 
1098.20 	admission assessments, on the ARD for significant change in status assessments, or on the 
1098.21 	day that the assessment was due for all other assessments and continues in effect until the 
1098.22 	first day of the month following the date of submission and acceptance of the resident's 
1098.23 	assessment.
1098.24 	(b) If loss of revenue due to penalties incurred by a facility for any period of 92 days 
1098.25 	are equal to or greater than 0.1 percent of the total operating costs on the facility's most 
1098.26 	recent annual statistical and cost report, a facility may apply to the commissioner of human 
1098.27 	services for a reduction in the total penalty amount. The commissioner of human services, 
1098.28 	in consultation with the commissioner of health, may, at the sole discretion of the 
1098.29 	commissioner of human services, limit the penalty for residents covered by medical assistance 
1098.30 	to ten days.

1099.1 	Sec. 13. Minnesota Statutes 2022, section 144.0724, subdivision 7, is amended to read:
1099.2 		Subd. 7.Notice of resident reimbursement case mix reimbursement classification. (a) 
1099.3 	The commissioner of health shall provide to a nursing facility a notice for each resident of 
1099.4 	the classification established under subdivision 1. The notice must inform the resident of 
1099.5 	the case mix reimbursement classification assigned, the opportunity to review the 
1099.6 	documentation supporting the classification, the opportunity to obtain clarification from the 
1099.7 	commissioner, and the opportunity to request a reconsideration of the classification, and 
1099.8 	the address and telephone number of the Office of Ombudsman for Long-Term Care. The 
1099.9 	commissioner must transmit the notice of resident classification by electronic means to the 
1099.10 	nursing facility. The nursing facility is responsible for the distribution of the notice to each 
1099.11 	resident or the resident's representative. This notice must be distributed within three business 
1099.12 	days after the facility's receipt.
1099.13 	(b) If a facility submits a modifying modified assessment resulting in a change in the 
1099.14 	case mix reimbursement classification, the facility must provide a written notice to the 
1099.15 	resident or the resident's representative regarding the item or items that were modified and 
1099.16 	the reason for the modifications. The written notice must be provided within three business 
1099.17 	days after distribution of the resident case mix reimbursement classification notice.

1099.18 	Sec. 14. Minnesota Statutes 2022, section 144.0724, subdivision 8, is amended to read:
1099.19 		Subd. 8.Request for reconsideration of resident classifications. (a) The resident, or
1099.20 	the resident's representative, or the nursing facility, or the boarding care home may request 
1099.21 	that the commissioner of health reconsider the assigned reimbursement case mix
1099.22 	reimbursement classification and any item or items changed during the audit process. The 
1099.23 	request for reconsideration must be submitted in writing to the commissioner of health.
1099.24 	(b) For reconsideration requests initiated by the resident or the resident's representative:
1099.25 	(1) The resident or the resident's representative must submit in writing a reconsideration 
1099.26 	request to the facility administrator within 30 days of receipt of the resident classification 
1099.27 	notice. The written request must include the reasons for the reconsideration request.
1099.28 	(2) Within three business days of receiving the reconsideration request, the nursing 
1099.29 	facility must submit to the commissioner of health a completed reconsideration request 
1099.30 	form, a copy of the resident's or resident's representative's written request, and all supporting 
1099.31 	documentation used to complete the assessment being considered reconsidered. If the facility 
1099.32 	fails to provide the required information, the reconsideration will be completed with the 
1100.1 	information submitted and the facility cannot make further reconsideration requests on this 
1100.2 	classification.
1100.3 	(3) Upon written request and within three business days, the nursing facility must give 
1100.4 	the resident or the resident's representative a copy of the assessment being reconsidered and 
1100.5 	all supporting documentation used to complete the assessment. Notwithstanding any law 
1100.6 	to the contrary, the facility may not charge a fee for providing copies of the requested 
1100.7 	documentation. If a facility fails to provide the required documents within this time, it is 
1100.8 	subject to the issuance of a correction order and penalty assessment under sections 144.653
1100.9 	and 144A.10. Notwithstanding those sections, any correction order issued under this 
1100.10 	subdivision must require that the nursing facility immediately comply with the request for 
1100.11 	information, and as of the date of the issuance of the correction order, the facility shall 
1100.12 	forfeit to the state a $100 fine for the first day of noncompliance, and an increase in the 
1100.13 	$100 fine by $50 increments for each day the noncompliance continues.
1100.14 	(c) For reconsideration requests initiated by the facility:
1100.15 	(1) The facility is required to inform the resident or the resident's representative in writing 
1100.16 	that a reconsideration of the resident's case mix reimbursement classification is being 
1100.17 	requested. The notice must inform the resident or the resident's representative:
1100.18 	(i) of the date and reason for the reconsideration request;
1100.19 	(ii) of the potential for a case mix reimbursement classification change and subsequent 
1100.20 	rate change;
1100.21 	(iii) of the extent of the potential rate change;
1100.22 	(iv) that copies of the request and supporting documentation are available for review; 
1100.23 	and
1100.24 	(v) that the resident or the resident's representative has the right to request a 
1100.25 	reconsideration also.
1100.26 	(2) Within 30 days of receipt of the audit exit report or resident classification notice, the 
1100.27 	facility must submit to the commissioner of health a completed reconsideration request 
1100.28 	form, all supporting documentation used to complete the assessment being reconsidered, 
1100.29 	and a copy of the notice informing the resident or the resident's representative that a 
1100.30 	reconsideration of the resident's classification is being requested.
1100.31 	(3) If the facility fails to provide the required information, the reconsideration request 
1100.32 	may be denied and the facility may not make further reconsideration requests on this 
1100.33 	classification.
1101.1 	(d) Reconsideration by the commissioner must be made by individuals not involved in 
1101.2 	reviewing the assessment, audit, or reconsideration that established the disputed classification. 
1101.3 	The reconsideration must be based upon the assessment that determined the classification 
1101.4 	and upon the information provided to the commissioner of health under paragraphs (a) to 
1101.5 	(c). If necessary for evaluating the reconsideration request, the commissioner may conduct 
1101.6 	on-site reviews. Within 15 business days of receiving the request for reconsideration, the 
1101.7 	commissioner shall affirm or modify the original resident classification. The original 
1101.8 	classification must be modified if the commissioner determines that the assessment resulting 
1101.9 	in the classification did not accurately reflect characteristics of the resident at the time of 
1101.10 	the assessment. The commissioner must transmit the reconsideration classification notice 
1101.11 	by electronic means to the nursing facility. The nursing facility is responsible for the 
1101.12 	distribution of the notice to the resident or the resident's representative. The notice must be 
1101.13 	distributed by the nursing facility within three business days after receipt. A decision by 
1101.14 	the commissioner under this subdivision is the final administrative decision of the agency 
1101.15 	for the party requesting reconsideration.
1101.16 	(e) The case mix reimbursement classification established by the commissioner shall be 
1101.17 	the classification which applies to the resident while the request for reconsideration is 
1101.18 	pending. If a request for reconsideration applies to an assessment used to determine nursing 
1101.19 	facility level of care under subdivision 4, paragraph (c) (d), the resident shall continue to 
1101.20 	be eligible for nursing facility level of care while the request for reconsideration is pending.
1101.21 	(f) The commissioner may request additional documentation regarding a reconsideration 
1101.22 	necessary to make an accurate reconsideration determination.
1101.23 	(g) Data collected as part of the reconsideration process under this section is classified 
1101.24 	as private data on individuals and nonpublic data pursuant to section 13.02. Notwithstanding 
1101.25 	the classification of these data as private or nonpublic, the commissioner is authorized to 
1101.26 	share these data with the U.S. Centers for Medicare and Medicaid Services and the 
1101.27 	commissioner of human services as necessary for reimbursement purposes.

1101.28 	Sec. 15. Minnesota Statutes 2022, section 144.0724, subdivision 9, is amended to read:
1101.29 		Subd. 9.Audit authority. (a) The commissioner shall audit the accuracy of resident 
1101.30 	assessments performed under section 256R.17 through any of the following: desk audits; 
1101.31 	on-site review of residents and their records; and interviews with staff, residents, or residents' 
1101.32 	families. The commissioner shall reclassify a resident if the commissioner determines that 
1101.33 	the resident was incorrectly classified.
1101.34 	(b) The commissioner is authorized to conduct on-site audits on an unannounced basis.
1102.1 	(c) A facility must grant the commissioner access to examine the medical records relating 
1102.2 	to the resident assessments selected for audit under this subdivision. The commissioner may 
1102.3 	also observe and speak to facility staff and residents.
1102.4 	(d) The commissioner shall consider documentation under the time frames for coding 
1102.5 	items on the minimum data set as set out in the Long-Term Care Facility Resident Assessment 
1102.6 	Instrument User's Manual or OSA Manual version 1.0 v.2 published by the Centers for 
1102.7 	Medicare and Medicaid Services.
1102.8 	(e) The commissioner shall develop an audit selection procedure that includes the 
1102.9 	following factors:
1102.10 	(1) Each facility shall be audited annually. If a facility has two successive audits in which 
1102.11 	the percentage of change is five percent or less and the facility has not been the subject of 
1102.12 	a special audit in the past 36 months, the facility may be audited biannually. A stratified 
1102.13 	sample of 15 percent, with a minimum of ten assessments, of the most current assessments 
1102.14 	shall be selected for audit. If more than 20 percent of the RUG-IV case mix reimbursement
1102.15 	classifications are changed as a result of the audit, the audit shall be expanded to a second 
1102.16 	15 percent sample, with a minimum of ten assessments. If the total change between the first 
1102.17 	and second samples is 35 percent or greater, the commissioner may expand the audit to all 
1102.18 	of the remaining assessments.
1102.19 	(2) If a facility qualifies for an expanded audit, the commissioner may audit the facility 
1102.20 	again within six months. If a facility has two expanded audits within a 24-month period, 
1102.21 	that facility will be audited at least every six months for the next 18 months.
1102.22 	(3) The commissioner may conduct special audits if the commissioner determines that 
1102.23 	circumstances exist that could alter or affect the validity of case mix reimbursement
1102.24 	classifications of residents. These circumstances include, but are not limited to, the following:
1102.25 	(i) frequent changes in the administration or management of the facility;
1102.26 	(ii) an unusually high percentage of residents in a specific case mix reimbursement
1102.27 	classification;
1102.28 	(iii) a high frequency in the number of reconsideration requests received from a facility;
1102.29 	(iv) frequent adjustments of case mix reimbursement classifications as the result of 
1102.30 	reconsiderations or audits;
1102.31 	(v) a criminal indictment alleging provider fraud;
1102.32 	(vi) other similar factors that relate to a facility's ability to conduct accurate assessments;
1103.1 	(vii) an atypical pattern of scoring minimum data set items;
1103.2 	(viii) nonsubmission of assessments;
1103.3 	(ix) late submission of assessments; or
1103.4 	(x) a previous history of audit changes of 35 percent or greater.
1103.5 	(f) If the audit results in a case mix reimbursement classification change, the 
1103.6 	commissioner must transmit the audit classification notice by electronic means to the nursing 
1103.7 	facility within 15 business days of completing an audit. The nursing facility is responsible 
1103.8 	for distribution of the notice to each resident or the resident's representative. This notice 
1103.9 	must be distributed by the nursing facility within three business days after receipt. The 
1103.10 	notice must inform the resident of the case mix reimbursement classification assigned, the 
1103.11 	opportunity to review the documentation supporting the classification, the opportunity to 
1103.12 	obtain clarification from the commissioner, the opportunity to request a reconsideration of 
1103.13 	the classification, and the address and telephone number of the Office of Ombudsman for 
1103.14 	Long-Term Care.

1103.15 	Sec. 16. Minnesota Statutes 2022, section 144.0724, subdivision 11, is amended to read:
1103.16 		Subd. 11.Nursing facility level of care. (a) For purposes of medical assistance payment 
1103.17 	of long-term care services, a recipient must be determined, using assessments defined in 
1103.18 	subdivision 4, to meet one of the following nursing facility level of care criteria:
1103.19 	(1) the person requires formal clinical monitoring at least once per day;
1103.20 	(2) the person needs the assistance of another person or constant supervision to begin 
1103.21 	and complete at least four of the following activities of living: bathing, bed mobility, dressing, 
1103.22 	eating, grooming, toileting, transferring, and walking;
1103.23 	(3) the person needs the assistance of another person or constant supervision to begin 
1103.24 	and complete toileting, transferring, or positioning and the assistance cannot be scheduled;
1103.25 	(4) the person has significant difficulty with memory, using information, daily decision 
1103.26 	making, or behavioral needs that require intervention;
1103.27 	(5) the person has had a qualifying nursing facility stay of at least 90 days;
1103.28 	(6) the person meets the nursing facility level of care criteria determined 90 days after 
1103.29 	admission or on the first quarterly assessment after admission, whichever is later; or
1103.30 	(7) the person is determined to be at risk for nursing facility admission or readmission 
1103.31 	through a face-to-face long-term care consultation assessment as specified in section 
1104.1 	256B.0911, subdivision 17 to 21, 23, 24, 27, or 28, by a county, tribe, or managed care 
1104.2 	organization under contract with the Department of Human Services. The person is 
1104.3 	considered at risk under this clause if the person currently lives alone or will live alone or 
1104.4 	be homeless without the person's current housing and also meets one of the following criteria:
1104.5 	(i) the person has experienced a fall resulting in a fracture;
1104.6 	(ii) the person has been determined to be at risk of maltreatment or neglect, including 
1104.7 	self-neglect; or
1104.8 	(iii) the person has a sensory impairment that substantially impacts functional ability 
1104.9 	and maintenance of a community residence.
1104.10 	(b) The assessment used to establish medical assistance payment for nursing facility 
1104.11 	services must be the most recent assessment performed under subdivision 4, paragraph
1104.12 	paragraphs (b) and (c), that occurred no more than 90 calendar days before the effective 
1104.13 	date of medical assistance eligibility for payment of long-term care services. In no case 
1104.14 	shall medical assistance payment for long-term care services occur prior to the date of the 
1104.15 	determination of nursing facility level of care.
1104.16 	(c) The assessment used to establish medical assistance payment for long-term care 
1104.17 	services provided under chapter 256S and section 256B.49 and alternative care payment 
1104.18 	for services provided under section 256B.0913 must be the most recent face-to-face 
1104.19 	assessment performed under section 256B.0911, subdivisions 17 to 21, 23, 24, 27, or 28, 
1104.20 	that occurred no more than 60 calendar days before the effective date of medical assistance 
1104.21 	eligibility for payment of long-term care services.

1104.22 	Sec. 17. Minnesota Statutes 2022, section 144.1464, subdivision 1, is amended to read:
1104.23 		Subdivision 1.Summer internships. The commissioner of health, through a contract 
1104.24 	with a nonprofit organization as required by subdivision 4, shall award grants, within 
1104.25 	available appropriations, to hospitals, clinics, nursing facilities, assisted living facilities, 
1104.26 	and home care providers to establish a secondary and postsecondary summer health care 
1104.27 	intern program. The purpose of the program is to expose interested secondary and 
1104.28 	postsecondary pupils to various careers within the health care profession.

1104.29 	Sec. 18. Minnesota Statutes 2022, section 144.1464, subdivision 2, is amended to read:
1104.30 		Subd. 2.Criteria. (a) The commissioner, through the organization under contract, shall 
1104.31 	award grants to hospitals, clinics, nursing facilities, assisted living facilities, and home care 
1104.32 	providers that agree to:
1105.1 	(1) provide secondary and postsecondary summer health care interns with formal exposure 
1105.2 	to the health care profession;
1105.3 	(2) provide an orientation for the secondary and postsecondary summer health care 
1105.4 	interns;
1105.5 	(3) pay one-half the costs of employing the secondary and postsecondary summer health 
1105.6 	care intern;
1105.7 	(4) interview and hire secondary and postsecondary pupils for a minimum of six weeks 
1105.8 	and a maximum of 12 weeks; and
1105.9 	(5) employ at least one secondary student for each postsecondary student employed, to 
1105.10 	the extent that there are sufficient qualifying secondary student applicants.
1105.11 	(b) In order to be eligible to be hired as a secondary summer health intern by a hospital, 
1105.12 	clinic, nursing facility, assisted living facility, or home care provider, a pupil must:
1105.13 	(1) intend to complete high school graduation requirements and be between the junior 
1105.14 	and senior year of high school; and
1105.15 	(2) be from a school district in proximity to the facility.
1105.16 	(c) In order to be eligible to be hired as a postsecondary summer health care intern by 
1105.17 	a hospital or clinic, a pupil must:
1105.18 	(1) intend to complete a health care training program or a two-year or four-year degree 
1105.19 	program and be planning on enrolling in or be enrolled in that training program or degree 
1105.20 	program; and
1105.21 	(2) be enrolled in a Minnesota educational institution or be a resident of the state of 
1105.22 	Minnesota; priority must be given to applicants from a school district or an educational 
1105.23 	institution in proximity to the facility.
1105.24 	(d) Hospitals, clinics, nursing facilities, assisted living facilities, and home care providers 
1105.25 	awarded grants may employ pupils as secondary and postsecondary summer health care 
1105.26 	interns beginning on or after June 15, 1993, if they agree to pay the intern, during the period 
1105.27 	before disbursement of state grant money, with money designated as the facility's 50 percent 
1105.28 	contribution towards internship costs.

1105.29 	Sec. 19. Minnesota Statutes 2022, section 144.1464, subdivision 3, is amended to read:
1105.30 		Subd. 3.Grants. The commissioner, through the organization under contract, shall 
1105.31 	award separate grants to hospitals, clinics, nursing facilities, assisted living facilities, and 
1106.1 	home care providers meeting the requirements of subdivision 2. The grants must be used 
1106.2 	to pay one-half of the costs of employing secondary and postsecondary pupils in a hospital, 
1106.3 	clinic, nursing facility, assisted living facility, or home care setting during the course of the 
1106.4 	program. No more than 50 percent of the participants may be postsecondary students, unless 
1106.5 	the program does not receive enough qualified secondary applicants per fiscal year. No 
1106.6 	more than five pupils may be selected from any secondary or postsecondary institution to 
1106.7 	participate in the program and no more than one-half of the number of pupils selected may 
1106.8 	be from the seven-county metropolitan area.

1106.9 	Sec. 20. Minnesota Statutes 2023 Supplement, section 144.1505, subdivision 2, is amended 
1106.10 	to read:
1106.11 		Subd. 2.Programs. (a) For advanced practice provider clinical training expansion grants, 
1106.12 	the commissioner of health shall award health professional training site grants to eligible 
1106.13 	physician assistant, advanced practice registered nurse, pharmacy, dental therapy, and mental 
1106.14 	health professional programs to plan and implement expanded clinical training. A planning 
1106.15 	grant shall not exceed $75,000, and a three-year training grant shall not exceed $150,000 
1106.16 	for the first year, $100,000 for the second year, and $50,000 for the third year $300,000 per 
1106.17 	program project. The commissioner may provide a one-year, no-cost extension for grants.
1106.18 	(b) For health professional rural and underserved clinical rotations grants, the 
1106.19 	commissioner of health shall award health professional training site grants to eligible 
1106.20 	physician, physician assistant, advanced practice registered nurse, pharmacy, dentistry, 
1106.21 	dental therapy, and mental health professional programs to augment existing clinical training 
1106.22 	programs to add rural and underserved rotations or clinical training experiences, such as 
1106.23 	credential or certificate rural tracks or other specialized training. For physician and dentist 
1106.24 	training, the expanded training must include rotations in primary care settings such as 
1106.25 	community clinics, hospitals, health maintenance organizations, or practices in rural 
1106.26 	communities.
1106.27 	(c) Funds may be used for:
1106.28 	(1) establishing or expanding rotations and clinical training;
1106.29 	(2) recruitment, training, and retention of students and faculty;
1106.30 	(3) connecting students with appropriate clinical training sites, internships, practicums, 
1106.31 	or externship activities;
1106.32 	(4) travel and lodging for students;
1106.33 	(5) faculty, student, and preceptor salaries, incentives, or other financial support;
1107.1 	(6) development and implementation of cultural competency training;
1107.2 	(7) evaluations;
1107.3 	(8) training site improvements, fees, equipment, and supplies required to establish, 
1107.4 	maintain, or expand a training program; and
1107.5 	(9) supporting clinical education in which trainees are part of a primary care team model.

1107.6 	Sec. 21. Minnesota Statutes 2022, section 144.1911, subdivision 2, is amended to read:
1107.7 		Subd. 2.Definitions. (a) For the purposes of this section, the following terms have the 
1107.8 	meanings given.
1107.9 	(b) "Commissioner" means the commissioner of health.
1107.10 	(c) "Immigrant international medical graduate" means an international medical graduate 
1107.11 	who was born outside the United States, now resides permanently in the United States or 
1107.12 	who has entered the United States on a temporary status based on urgent humanitarian or 
1107.13 	significant public benefit reasons, and who did not enter the United States on a J1 or similar 
1107.14 	nonimmigrant visa following acceptance into a United States medical residency or fellowship 
1107.15 	program.
1107.16 	(d) "International medical graduate" means a physician who received a basic medical 
1107.17 	degree or qualification from a medical school located outside the United States and Canada.
1107.18 	(e) "Minnesota immigrant international medical graduate" means an immigrant 
1107.19 	international medical graduate who has lived in Minnesota for at least two years.
1107.20 	(f) "Rural community" means a statutory and home rule charter city or township that is 
1107.21 	outside the seven-county metropolitan area as defined in section 473.121, subdivision 2, 
1107.22 	excluding the cities of Duluth, Mankato, Moorhead, Rochester, and St. Cloud.
1107.23 	(g) "Underserved community" means a Minnesota area or population included in the 
1107.24 	list of designated primary medical care health professional shortage areas, medically 
1107.25 	underserved areas, or medically underserved populations (MUPs) maintained and updated 
1107.26 	by the United States Department of Health and Human Services.

1107.27 	Sec. 22. Minnesota Statutes 2022, section 144.212, is amended by adding a subdivision 
1107.28 	to read:
1107.29 		Subd. 5a.Replacement. "Replacement" means a completion, addition, removal, or 
1107.30 	change made to certification items on a vital record after a vital event is registered and a 
1108.1 	record is established that has no notation of a change on a certificate and seals the prior vital 
1108.2 	record.

1108.3 	Sec. 23. Minnesota Statutes 2022, section 144.216, subdivision 2, is amended to read:
1108.4 		Subd. 2.Status of foundling reports. A report registered under subdivision 1 shall 
1108.5 	constitute the record of birth for the child. Information about the newborn shall be registered 
1108.6 	by the state registrar in accordance with Minnesota Rules, part 4601.0600, subpart 4, item 
1108.7 	C. If the child is identified and a record of birth is found or obtained, the report registered 
1108.8 	under subdivision 1 shall be confidential pursuant to section 13.02, subdivision 3, and shall 
1108.9 	not be disclosed except pursuant to court order.

1108.10 	Sec. 24. Minnesota Statutes 2022, section 144.216, is amended by adding a subdivision 
1108.11 	to read:
1108.12 		Subd. 3.Reporting safe place newborns. Hospitals that receive a newborn under section 
1108.13 	145.902 shall report the birth of the newborn to the Office of Vital Records within five days 
1108.14 	after receiving the newborn. Information about the newborn shall be registered by the state 
1108.15 	registrar in accordance with Minnesota Rules, part 4601.0600, subpart 4, item C.

1108.16 	Sec. 25. Minnesota Statutes 2022, section 144.216, is amended by adding a subdivision 
1108.17 	to read:
1108.18 		Subd. 4.Status of safe place birth reports and registrations. (a) Information about a 
1108.19 	safe place newborn registered under subdivision 3 shall constitute the record of birth for 
1108.20 	the child. The record shall be confidential pursuant to section 13.02, subdivision 3. 
1108.21 	Information on the birth record or a birth certificate issued from the birth record shall be 
1108.22 	disclosed only to the responsible social services agency or pursuant to a court order.
1108.23 	(b) Information about a safe place newborn registered under subdivision 3 shall constitute 
1108.24 	the record of birth for the child. If the safe place newborn was born in a hospital and it is 
1108.25 	known that a record of birth was registered, filed, or amended, the original birth record 
1108.26 	registered under section 144.215 shall be replaced pursuant to section 144.218, subdivision 
1108.27 	6.

1108.28 	Sec. 26. Minnesota Statutes 2022, section 144.218, is amended by adding a subdivision 
1108.29 	to read:
1108.30 		Subd. 6.Safe place newborn; birth record. If a safe place infant birth is registered 
1108.31 	pursuant to section 144.216, subdivision 4, paragraph (b), the state registrar shall issue a 
1109.1 	replacement birth record free of information that identifies a parent. The prior vital record 
1109.2 	shall be confidential pursuant to section 13.02, subdivision 3, and shall not be disclosed 
1109.3 	except pursuant to a court order.

1109.4 	Sec. 27. Minnesota Statutes 2022, section 144.493, is amended by adding a subdivision 
1109.5 	to read:
1109.6 		Subd. 2a.Thrombectomy-capable stroke center. A hospital meets the criteria for a 
1109.7 	thrombectomy-capable stroke center if the hospital has been certified as a 
1109.8 	thrombectomy-capable stroke center by the joint commission or another nationally recognized 
1109.9 	accreditation entity, or is a primary stroke center that is not certified as a thrombectomy-based 
1109.10 	capable stroke center but the hospital has attained a level of stroke care distinction by offering 
1109.11 	mechanical endovascular therapies and has been certified by a department approved certifying 
1109.12 	body that is a nationally recognized guidelines-based organization.

1109.13 	Sec. 28. Minnesota Statutes 2022, section 144.494, subdivision 2, is amended to read:
1109.14 		Subd. 2.Designation. A hospital that voluntarily meets the criteria for a comprehensive 
1109.15 	stroke center, thrombectomy-capable stroke center, primary stroke center, or acute stroke 
1109.16 	ready hospital may apply to the commissioner for designation, and upon the commissioner's 
1109.17 	review and approval of the application, shall be designated as a comprehensive stroke center, 
1109.18 	a thrombectomy-capable stroke center, a primary stroke center, or an acute stroke ready 
1109.19 	hospital for a three-year period. If a hospital loses its certification as a comprehensive stroke 
1109.20 	center or primary stroke center from the joint commission or other nationally recognized 
1109.21 	accreditation entity, or no longer participates in the Minnesota stroke registry program, its 
1109.22 	Minnesota designation shall be immediately withdrawn. Prior to the expiration of the 
1109.23 	three-year designation period, a hospital seeking to remain part of the voluntary acute stroke 
1109.24 	system may reapply to the commissioner for designation.

1109.25 	Sec. 29. Minnesota Statutes 2022, section 144.551, subdivision 1, is amended to read:
1109.26 		Subdivision 1.Restricted construction or modification. (a) The following construction 
1109.27 	or modification may not be commenced:
1109.28 	(1) any erection, building, alteration, reconstruction, modernization, improvement, 
1109.29 	extension, lease, or other acquisition by or on behalf of a hospital that increases the bed 
1109.30 	capacity of a hospital, relocates hospital beds from one physical facility, complex, or site 
1109.31 	to another, or otherwise results in an increase or redistribution of hospital beds within the 
1109.32 	state; and
1110.1 	(2) the establishment of a new hospital.
1110.2 	(b) This section does not apply to:
1110.3 	(1) construction or relocation within a county by a hospital, clinic, or other health care 
1110.4 	facility that is a national referral center engaged in substantial programs of patient care, 
1110.5 	medical research, and medical education meeting state and national needs that receives more 
1110.6 	than 40 percent of its patients from outside the state of Minnesota;
1110.7 	(2) a project for construction or modification for which a health care facility held an 
1110.8 	approved certificate of need on May 1, 1984, regardless of the date of expiration of the 
1110.9 	certificate;
1110.10 	(3) a project for which a certificate of need was denied before July 1, 1990, if a timely 
1110.11 	appeal results in an order reversing the denial;
1110.12 	(4) a project exempted from certificate of need requirements by Laws 1981, chapter 200, 
1110.13 	section 2;
1110.14 	(5) a project involving consolidation of pediatric specialty hospital services within the 
1110.15 	Minneapolis-St. Paul metropolitan area that would not result in a net increase in the number 
1110.16 	of pediatric specialty hospital beds among the hospitals being consolidated;
1110.17 	(6) a project involving the temporary relocation of pediatric-orthopedic hospital beds to 
1110.18 	an existing licensed hospital that will allow for the reconstruction of a new philanthropic, 
1110.19 	pediatric-orthopedic hospital on an existing site and that will not result in a net increase in 
1110.20 	the number of hospital beds. Upon completion of the reconstruction, the licenses of both 
1110.21 	hospitals must be reinstated at the capacity that existed on each site before the relocation;
1110.22 	(7) the relocation or redistribution of hospital beds within a hospital building or 
1110.23 	identifiable complex of buildings provided the relocation or redistribution does not result 
1110.24 	in: (i) an increase in the overall bed capacity at that site; (ii) relocation of hospital beds from 
1110.25 	one physical site or complex to another; or (iii) redistribution of hospital beds within the 
1110.26 	state or a region of the state;
1110.27 	(8) relocation or redistribution of hospital beds within a hospital corporate system that 
1110.28 	involves the transfer of beds from a closed facility site or complex to an existing site or 
1110.29 	complex provided that: (i) no more than 50 percent of the capacity of the closed facility is 
1110.30 	transferred; (ii) the capacity of the site or complex to which the beds are transferred does 
1110.31 	not increase by more than 50 percent; (iii) the beds are not transferred outside of a federal 
1110.32 	health systems agency boundary in place on July 1, 1983; (iv) the relocation or redistribution 
1110.33 	does not involve the construction of a new hospital building; and (v) the transferred beds 
1111.1 	are used first to replace within the hospital corporate system the total number of beds 
1111.2 	previously used in the closed facility site or complex for mental health services and substance 
1111.3 	use disorder services. Only after the hospital corporate system has fulfilled the requirements 
1111.4 	of this item may the remainder of the available capacity of the closed facility site or complex 
1111.5 	be transferred for any other purpose;
1111.6 	(9) a construction project involving up to 35 new beds in a psychiatric hospital in Rice 
1111.7 	County that primarily serves adolescents and that receives more than 70 percent of its 
1111.8 	patients from outside the state of Minnesota;
1111.9 	(10) a project to replace a hospital or hospitals with a combined licensed capacity of 
1111.10 	130 beds or less if: (i) the new hospital site is located within five miles of the current site; 
1111.11 	and (ii) the total licensed capacity of the replacement hospital, either at the time of 
1111.12 	construction of the initial building or as the result of future expansion, will not exceed 70
1111.13 	100 licensed hospital beds, or the combined licensed capacity of the hospitals, whichever 
1111.14 	is less;
1111.15 	(11) the relocation of licensed hospital beds from an existing state facility operated by 
1111.16 	the commissioner of human services to a new or existing facility, building, or complex 
1111.17 	operated by the commissioner of human services; from one regional treatment center site 
1111.18 	to another; or from one building or site to a new or existing building or site on the same 
1111.19 	campus;
1111.20 	(12) the construction or relocation of hospital beds operated by a hospital having a 
1111.21 	statutory obligation to provide hospital and medical services for the indigent that does not 
1111.22 	result in a net increase in the number of hospital beds, notwithstanding section 144.552, 27 
1111.23 	beds, of which 12 serve mental health needs, may be transferred from Hennepin County 
1111.24 	Medical Center to Regions Hospital under this clause;
1111.25 	(13) a construction project involving the addition of up to 31 new beds in an existing 
1111.26 	nonfederal hospital in Beltrami County;
1111.27 	(14) a construction project involving the addition of up to eight new beds in an existing 
1111.28 	nonfederal hospital in Otter Tail County with 100 licensed acute care beds;
1111.29 	(15) a construction project involving the addition of 20 new hospital beds in an existing 
1111.30 	hospital in Carver County serving the southwest suburban metropolitan area;
1111.31 	(16) a project for the construction or relocation of up to 20 hospital beds for the operation 
1111.32 	of up to two psychiatric facilities or units for children provided that the operation of the 
1111.33 	facilities or units have received the approval of the commissioner of human services;
1112.1 	(17) a project involving the addition of 14 new hospital beds to be used for rehabilitation 
1112.2 	services in an existing hospital in Itasca County;
1112.3 	(18) a project to add 20 licensed beds in existing space at a hospital in Hennepin County 
1112.4 	that closed 20 rehabilitation beds in 2002, provided that the beds are used only for 
1112.5 	rehabilitation in the hospital's current rehabilitation building. If the beds are used for another 
1112.6 	purpose or moved to another location, the hospital's licensed capacity is reduced by 20 beds;
1112.7 	(19) a critical access hospital established under section 144.1483, clause (9), and section 
1112.8 	1820 of the federal Social Security Act, United States Code, title 42, section 1395i-4, that 
1112.9 	delicensed beds since enactment of the Balanced Budget Act of 1997, Public Law 105-33, 
1112.10 	to the extent that the critical access hospital does not seek to exceed the maximum number 
1112.11 	of beds permitted such hospital under federal law;
1112.12 	(20) notwithstanding section 144.552, a project for the construction of a new hospital 
1112.13 	in the city of Maple Grove with a licensed capacity of up to 300 beds provided that:
1112.14 	(i) the project, including each hospital or health system that will own or control the entity 
1112.15 	that will hold the new hospital license, is approved by a resolution of the Maple Grove City 
1112.16 	Council as of March 1, 2006;
1112.17 	(ii) the entity that will hold the new hospital license will be owned or controlled by one 
1112.18 	or more not-for-profit hospitals or health systems that have previously submitted a plan or 
1112.19 	plans for a project in Maple Grove as required under section 144.552, and the plan or plans 
1112.20 	have been found to be in the public interest by the commissioner of health as of April 1, 
1112.21 	2005;
1112.22 	(iii) the new hospital's initial inpatient services must include, but are not limited to, 
1112.23 	medical and surgical services, obstetrical and gynecological services, intensive care services, 
1112.24 	orthopedic services, pediatric services, noninvasive cardiac diagnostics, behavioral health 
1112.25 	services, and emergency room services;
1112.26 	(iv) the new hospital:
1112.27 	(A) will have the ability to provide and staff sufficient new beds to meet the growing 
1112.28 	needs of the Maple Grove service area and the surrounding communities currently being 
1112.29 	served by the hospital or health system that will own or control the entity that will hold the 
1112.30 	new hospital license;
1112.31 	(B) will provide uncompensated care;
1112.32 	(C) will provide mental health services, including inpatient beds;
1113.1 	(D) will be a site for workforce development for a broad spectrum of health-care-related 
1113.2 	occupations and have a commitment to providing clinical training programs for physicians 
1113.3 	and other health care providers;
1113.4 	(E) will demonstrate a commitment to quality care and patient safety;
1113.5 	(F) will have an electronic medical records system, including physician order entry;
1113.6 	(G) will provide a broad range of senior services;
1113.7 	(H) will provide emergency medical services that will coordinate care with regional 
1113.8 	providers of trauma services and licensed emergency ambulance services in order to enhance 
1113.9 	the continuity of care for emergency medical patients; and
1113.10 	(I) will be completed by December 31, 2009, unless delayed by circumstances beyond 
1113.11 	the control of the entity holding the new hospital license; and
1113.12 	(v) as of 30 days following submission of a written plan, the commissioner of health 
1113.13 	has not determined that the hospitals or health systems that will own or control the entity 
1113.14 	that will hold the new hospital license are unable to meet the criteria of this clause;
1113.15 	(21) a project approved under section 144.553;
1113.16 	(22) a project for the construction of a hospital with up to 25 beds in Cass County within 
1113.17 	a 20-mile radius of the state Ah-Gwah-Ching facility, provided the hospital's license holder 
1113.18 	is approved by the Cass County Board;
1113.19 	(23) a project for an acute care hospital in Fergus Falls that will increase the bed capacity 
1113.20 	from 108 to 110 beds by increasing the rehabilitation bed capacity from 14 to 16 and closing 
1113.21 	a separately licensed 13-bed skilled nursing facility;
1113.22 	(24) notwithstanding section 144.552, a project for the construction and expansion of a 
1113.23 	specialty psychiatric hospital in Hennepin County for up to 50 beds, exclusively for patients 
1113.24 	who are under 21 years of age on the date of admission. The commissioner conducted a 
1113.25 	public interest review of the mental health needs of Minnesota and the Twin Cities 
1113.26 	metropolitan area in 2008. No further public interest review shall be conducted for the 
1113.27 	construction or expansion project under this clause;
1113.28 	(25) a project for a 16-bed psychiatric hospital in the city of Thief River Falls, if the 
1113.29 	commissioner finds the project is in the public interest after the public interest review 
1113.30 	conducted under section 144.552 is complete;
1113.31 	(26)(i) a project for a 20-bed psychiatric hospital, within an existing facility in the city 
1113.32 	of Maple Grove, exclusively for patients who are under 21 years of age on the date of 
1114.1 	admission, if the commissioner finds the project is in the public interest after the public 
1114.2 	interest review conducted under section 144.552 is complete;
1114.3 	(ii) this project shall serve patients in the continuing care benefit program under section 
1114.4 	256.9693. The project may also serve patients not in the continuing care benefit program; 
1114.5 	and
1114.6 	(iii) if the project ceases to participate in the continuing care benefit program, the 
1114.7 	commissioner must complete a subsequent public interest review under section 144.552. If 
1114.8 	the project is found not to be in the public interest, the license must be terminated six months 
1114.9 	from the date of that finding. If the commissioner of human services terminates the contract 
1114.10 	without cause or reduces per diem payment rates for patients under the continuing care 
1114.11 	benefit program below the rates in effect for services provided on December 31, 2015, the 
1114.12 	project may cease to participate in the continuing care benefit program and continue to 
1114.13 	operate without a subsequent public interest review;
1114.14 	(27) a project involving the addition of 21 new beds in an existing psychiatric hospital 
1114.15 	in Hennepin County that is exclusively for patients who are under 21 years of age on the 
1114.16 	date of admission;
1114.17 	(28) a project to add 55 licensed beds in an existing safety net, level I trauma center 
1114.18 	hospital in Ramsey County as designated under section 383A.91, subdivision 5, of which 
1114.19 	15 beds are to be used for inpatient mental health and 40 are to be used for other services. 
1114.20 	In addition, five unlicensed observation mental health beds shall be added;
1114.21 	(29) upon submission of a plan to the commissioner for public interest review under 
1114.22 	section 144.552 and the addition of the 15 inpatient mental health beds specified in clause 
1114.23 	(28), to its bed capacity, a project to add 45 licensed beds in an existing safety net, level I 
1114.24 	trauma center hospital in Ramsey County as designated under section 383A.91, subdivision 
1114.25 	5. Five of the 45 additional beds authorized under this clause must be designated for use 
1114.26 	for inpatient mental health and must be added to the hospital's bed capacity before the 
1114.27 	remaining 40 beds are added. Notwithstanding section 144.552, the hospital may add licensed 
1114.28 	beds under this clause prior to completion of the public interest review, provided the hospital 
1114.29 	submits its plan by the 2021 deadline and adheres to the timelines for the public interest 
1114.30 	review described in section 144.552;
1114.31 	(30) upon submission of a plan to the commissioner for public interest review under 
1114.32 	section 144.552, a project to add up to 30 licensed beds in an existing psychiatric hospital 
1114.33 	in Hennepin County that exclusively provides care to patients who are under 21 years of 
1114.34 	age on the date of admission. Notwithstanding section 144.552, the psychiatric hospital 
1115.1 	may add licensed beds under this clause prior to completion of the public interest review, 
1115.2 	provided the hospital submits its plan by the 2021 deadline and adheres to the timelines for 
1115.3 	the public interest review described in section 144.552;
1115.4 	(31) any project to add licensed beds in a hospital located in Cook County or Mahnomen 
1115.5 	County that: (i) is designated as a critical access hospital under section 144.1483, clause 
1115.6 	(9), and United States Code, title 42, section 1395i-4; (ii) has a licensed bed capacity of 
1115.7 	fewer than 25 beds; and (iii) has an attached nursing home, so long as the total number of 
1115.8 	licensed beds in the hospital after the bed addition does not exceed 25 beds. Notwithstanding 
1115.9 	section 144.552, a public interest review is not required for a project authorized under this 
1115.10 	clause;
1115.11 	(32) upon submission of a plan to the commissioner for public interest review under 
1115.12 	section 144.552, a project to add 22 licensed beds at a Minnesota freestanding children's 
1115.13 	hospital in St. Paul that is part of an independent pediatric health system with freestanding 
1115.14 	inpatient hospitals located in Minneapolis and St. Paul. The beds shall be utilized for pediatric 
1115.15 	inpatient behavioral health services. Notwithstanding section 144.552, the hospital may add 
1115.16 	licensed beds under this clause prior to completion of the public interest review, provided 
1115.17 	the hospital submits its plan by the 2022 deadline and adheres to the timelines for the public 
1115.18 	interest review described in section 144.552; or
1115.19 	(33) a project for a 144-bed psychiatric hospital on the site of the former Bethesda 
1115.20 	hospital in the city of Saint Paul, Ramsey County, if the commissioner finds the project is 
1115.21 	in the public interest after the public interest review conducted under section 144.552 is 
1115.22 	complete. Following the completion of the construction project, the commissioner of health 
1115.23 	shall monitor the hospital, including by assessing the hospital's case mix and payer mix, 
1115.24 	patient transfers, and patient diversions. The hospital must have an intake and assessment 
1115.25 	area. The hospital must accommodate patients with acute mental health needs, whether they 
1115.26 	walk up to the facility, are delivered by ambulances or law enforcement, or are transferred 
1115.27 	from other facilities. The hospital must comply with subdivision 1a, paragraph (b). The 
1115.28 	hospital must annually submit de-identified data to the department in the format and manner 
1115.29 	defined by the commissioner.; or
1115.30 	(34) a project involving the relocation of up to 26 licensed long-term acute care hospital 
1115.31 	beds from an existing long-term care hospital located in Hennepin County with a licensed 
1115.32 	capacity prior to the relocation of 92 beds to dedicated space on the campus of an existing 
1115.33 	safety net, level I trauma center hospital in Ramsey County as designated under section 
1115.34 	383A.91, subdivision 5, provided both the commissioner finds the project is in the public 
1115.35 	interest after the public interest review conducted under section 144.552 is complete and 
1116.1 	the relocated beds continue to be used as long-term acute care hospital beds after the 
1116.2 	relocation.

1116.3 	Sec. 30. Minnesota Statutes 2022, section 144.605, is amended by adding a subdivision 
1116.4 	to read:
1116.5 		Subd. 10.Chapter 16C waiver. Pursuant to subdivisions 4, paragraph (b), and 5, 
1116.6 	paragraph (b), the commissioner of administration may waive provisions of chapter 16C 
1116.7 	for the purposes of approving contracts for independent clinical teams.

1116.8 	Sec. 31. Minnesota Statutes 2023 Supplement, section 144.651, subdivision 10a, is amended 
1116.9 	to read:
1116.10 		Subd. 10a.Designated support person for pregnant patient or other patient. (a) 
1116.11 	Subject to paragraph (c), a health care provider and a health care facility must allow, at a 
1116.12 	minimum, one designated support person of a pregnant patient's choosing chosen by a 
1116.13 	patient, including but not limited to a pregnant patient, to be physically present while the 
1116.14 	patient is receiving health care services including during a hospital stay.
1116.15 	(b) For purposes of this subdivision, "designated support person" means any person 
1116.16 	chosen by the patient to provide comfort to the patient including but not limited to the 
1116.17 	patient's spouse, partner, family member, or another person related by affinity. Certified 
1116.18 	doulas and traditional midwives may not be counted toward the limit of one designated 
1116.19 	support person.
1116.20 	(c) A facility may restrict or prohibit the presence of a designated support person in 
1116.21 	treatment rooms, procedure rooms, and operating rooms when such a restriction or prohibition 
1116.22 	is strictly necessary to meet the appropriate standard of care. A facility may also restrict or 
1116.23 	prohibit the presence of a designated support person if the designated support person is 
1116.24 	acting in a violent or threatening manner toward others. Any restriction or prohibition of a 
1116.25 	designated support person by the facility is subject to the facility's written internal grievance 
1116.26 	procedure required by subdivision 20.

1116.27 	Sec. 32. [144.6985] COMMUNITY HEALTH NEEDS ASSESSMENT; COMMUNITY 
1116.28 	HEALTH IMPROVEMENT SERVICES; IMPLEMENTATION.
1116.29 		Subdivision 1.Community health needs assessment. A nonprofit hospital that is exempt 
1116.30 	from taxation under section 501(c)(3) of the Internal Revenue Code must make available 
1116.31 	to the public and submit to the commissioner of health, by January 15, 2026, the most recent 
1116.32 	community health needs assessment submitted by the hospital to the Internal Revenue 
1117.1 	Service. Each time the hospital conducts a subsequent community health needs assessment, 
1117.2 	the hospital must, within 15 business days after submitting the subsequent community health 
1117.3 	needs assessment to the Internal Revenue Service, make the subsequent assessment available 
1117.4 	to the public and submit the subsequent assessment to the commissioner.
1117.5 		Subd. 2.Description of community. A nonprofit hospital subject to subdivision 1 must 
1117.6 	make available to the public and submit to the commissioner of health a description of the 
1117.7 	community served by the hospital. The description must include a geographic description 
1117.8 	of the area where the hospital is located, a description of the general population served by 
1117.9 	the hospital, and demographic information about the community served by the hospital, 
1117.10 	such as leading causes of death, levels of chronic illness, and descriptions of the medically 
1117.11 	underserved, low-income, minority, or chronically ill populations in the community. A 
1117.12 	hospital is not required to separately make the information available to the public or 
1117.13 	separately submit the information to the commissioner if the information is included in the 
1117.14 	hospital's community health needs assessment made available and submitted under 
1117.15 	subdivision 1.
1117.16 		Subd. 3.Addendum; community health improvement services. (a) A nonprofit hospital 
1117.17 	subject to subdivision 1 must annually submit to the commissioner an addendum which 
1117.18 	details information about hospital activities identified as community health improvement 
1117.19 	services with a cost of $5,000 or more. The addendum must include the type of activity, the 
1117.20 	method through which the activity was delivered, how the activity relates to an identified 
1117.21 	community need in the community health needs assessment, the target population for the 
1117.22 	activity, strategies to reach the target population, identified outcome metrics, the cost to the 
1117.23 	hospital to provide the activity, the methodology used to calculate the hospital's costs, and 
1117.24 	the number of people served by the activity. If a community health improvement service is 
1117.25 	administered by an entity other than the hospital, the administering entity must be identified 
1117.26 	in the addendum. This paragraph does not apply to hospitals required to submit an addendum 
1117.27 	under paragraph (b).
1117.28 	(b) A nonprofit hospital subject to subdivision 1 must annually submit to the 
1117.29 	commissioner an addendum which details information about the ten highest-cost activities 
1117.30 	of the hospital identified as community health improvement services if the nonprofit hospital:
1117.31 	(1) is designated as a critical access hospital under section 144.1483, clause (9), and 
1117.32 	United States Code, title 42, section 1395i-4;
1117.33 	(2) meets the definition of sole community hospital in section 62Q.19, subdivision 1, 
1117.34 	paragraph (a), clause (5); or
1118.1 	(3) meets the definition of rural emergency hospital in United States Code, title 42, 
1118.2 	section 1395x(kkk)(2).
1118.3 	The addendum must include the type of activity, the method in which the activity was 
1118.4 	delivered, how the activity relates to an identified community need in the community health 
1118.5 	needs assessment, the target population for the activity, strategies to reach the target 
1118.6 	population, identified outcome metrics, the cost to the hospital to provide the activity, the 
1118.7 	methodology used to calculate the hospital's costs, and the number of people served by the 
1118.8 	activity. If a community health improvement service is administered by an entity other than 
1118.9 	the hospital, the administering entity must be identified in the addendum.
1118.10 		Subd. 4.Community benefit implementation strategy. A nonprofit hospital subject 
1118.11 	to subdivision 1 must make available to the public, within one year after completing each 
1118.12 	community health needs assessment, a community benefit implementation strategy. In 
1118.13 	developing the community benefit implementation strategy, the hospital must consult with 
1118.14 	community-based organizations, stakeholders, local public health organizations, and others 
1118.15 	as determined by the hospital. The implementation strategy must include how the hospital 
1118.16 	shall address the top three community health priorities identified in the community health 
1118.17 	needs assessment. Implementation strategies must be evidence-based, when available, and 
1118.18 	development and implementation of innovative programs and strategies may be supported 
1118.19 	by evaluation measures.
1118.20 		Subd. 5.Information made available to the public. A nonprofit hospital required to 
1118.21 	make information available to the public under this section may do so by posting the 
1118.22 	information on the hospital's website in a consolidated location and with clear labeling.
1118.23 	This section is effective January 1, 2026.

1118.24 	Sec. 33. Minnesota Statutes 2022, section 144.7067, subdivision 2, is amended to read:
1118.25 		Subd. 2.Duty to analyze reports; communicate findings. (a) The commissioner shall:
1118.26 	(1) analyze adverse event reports, corrective action plans, and findings of the root cause 
1118.27 	analyses to determine patterns of systemic failure in the health care system and successful 
1118.28 	methods to correct these failures;
1118.29 	(2) communicate to individual facilities the commissioner's conclusions, if any, regarding 
1118.30 	an adverse event reported by the facility;
1118.31 	(3) communicate with relevant health care facilities any recommendations for corrective 
1118.32 	action resulting from the commissioner's analysis of submissions from facilities; and
1119.1 	(4) publish an annual report:
1119.2 	(i) describing, by institution, adverse events reported;
1119.3 	(ii) outlining, in aggregate, corrective action plans and the findings of root cause analyses; 
1119.4 	and
1119.5 	(iii) making recommendations for modifications of state health care operations.
1119.6 	(b) Notwithstanding section 144.05, subdivision 7, the mandate to publish an annual 
1119.7 	report under this subdivision does not expire.

1119.8 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2023.

1119.9 	Sec. 34. Minnesota Statutes 2022, section 144.99, subdivision 3, is amended to read:
1119.10 		Subd. 3.Correction orders. (a) The commissioner may issue correction orders that 
1119.11 	require a person to correct a violation of the statutes, rules, and other actions listed in 
1119.12 	subdivision 1. The correction order must state the deficiencies that constitute the violation; 
1119.13 	the specific statute, rule, or other action; and the time by which the violation must be 
1119.14 	corrected.
1119.15 	(b) If the person believes that the information contained in the commissioner's correction 
1119.16 	order is in error, the person may ask the commissioner to reconsider the parts of the order 
1119.17 	that are alleged to be in error. The request must be in writing, delivered to the commissioner 
1119.18 	by certified mail within seven 15 calendar days after receipt of the order, and:
1119.19 	(1) specify which parts of the order for corrective action are alleged to be in error;
1119.20 	(2) explain why they are in error; and
1119.21 	(3) provide documentation to support the allegation of error.
1119.22 	The commissioner must respond to requests made under this paragraph within 15 calendar 
1119.23 	days after receiving a request. A request for reconsideration does not stay the correction 
1119.24 	order; however, after reviewing the request for reconsideration, the commissioner may 
1119.25 	provide additional time to comply with the order if necessary. The commissioner's disposition 
1119.26 	of a request for reconsideration is final.

1119.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

1119.28 	Sec. 35. Minnesota Statutes 2022, section 144A.10, subdivision 15, is amended to read:
1119.29 		Subd. 15.Informal dispute resolution. The commissioner shall respond in writing to 
1119.30 	a request from a nursing facility certified under the federal Medicare and Medicaid programs 
1120.1 	for an informal dispute resolution within 30 days of the exit date of the facility's survey ten 
1120.2 	calendar days of the facility's receipt of the notice of deficiencies. The commissioner's 
1120.3 	response shall identify the commissioner's decision regarding the continuation of each 
1120.4 	deficiency citation challenged by the nursing facility, as well as a statement of any changes 
1120.5 	in findings, level of severity or scope, and proposed remedies or sanctions for each deficiency 
1120.6 	citation.

1120.7 	EFFECTIVE DATE. This section is effective August 1, 2024.

1120.8 	Sec. 36. Minnesota Statutes 2022, section 144A.10, subdivision 16, is amended to read:
1120.9 		Subd. 16.Independent informal dispute resolution. (a) Notwithstanding subdivision 
1120.10 	15, a facility certified under the federal Medicare or Medicaid programs that has been 
1120.11 	assessed a civil money penalty as provided by Code of Federal Regulations, title 42, section 
1120.12 	488.430, may request from the commissioner, in writing, an independent informal dispute 
1120.13 	resolution process regarding any deficiency citation issued to the facility. The facility must 
1120.14 	specify in its written request each deficiency citation that it disputes. The commissioner 
1120.15 	shall provide a hearing under sections 14.57 to 14.62. Upon the written request of the facility, 
1120.16 	the parties must submit the issues raised to arbitration by an administrative law judge submit 
1120.17 	its request in writing within ten calendar days of receiving notice that a civil money penalty 
1120.18 	will be imposed.
1120.19 	(b) The facility and commissioner have the right to be represented by an attorney at the 
1120.20 	hearing.
1120.21 	(c) An independent informal dispute resolution may not be requested for any deficiency 
1120.22 	that is the subject of an active informal dispute resolution requested under subdivision 15. 
1120.23 	The facility must withdraw its informal dispute resolution prior to requesting independent 
1120.24 	informal dispute resolution.
1120.25 	(b) Upon (d) Within five calendar days of receipt of a written request for an arbitration 
1120.26 	proceeding independent informal dispute resolution, the commissioner shall file with the 
1120.27 	Office of Administrative Hearings a request for the appointment of an arbitrator
1120.28 	administrative law judge from the Office of Administrative Hearings and simultaneously 
1120.29 	serve the facility with notice of the request. The arbitrator for the dispute shall be an 
1120.30 	administrative law judge appointed by the Office of Administrative Hearings. The disclosure 
1120.31 	provisions of section 572B.12 and the notice provisions of section 572B.15, subsection (c), 
1120.32 	apply. The facility and the commissioner have the right to be represented by an attorney.
1121.1 	(e) An independent informal dispute resolution proceeding shall be scheduled to occur 
1121.2 	within 30 calendar days of the commissioner's request to the Office of Administrative 
1121.3 	Hearings, unless the parties agree otherwise or the chief administrative law judge deems 
1121.4 	the timing to be unreasonable. The independent informal dispute resolution process must 
1121.5 	be completed within 60 calendar days of the facility's request.
1121.6 	(c) (f) Five working days in advance of the scheduled proceeding, the commissioner 
1121.7 	and the facility may present must submit written statements and arguments, documentary 
1121.8 	evidence, depositions, and oral statements and arguments at the arbitration proceeding. Oral 
1121.9 	statements and arguments may be made by telephone any other materials supporting their 
1121.10 	position to the administrative law judge.
1121.11 	(g) The independent informal dispute resolution proceeding shall be informal and 
1121.12 	conducted in a manner so as to allow the parties to fully present their positions and respond 
1121.13 	to the opposing party's positions. This may include presentation of oral statements and 
1121.14 	arguments at the proceeding.
1121.15 	(d) (h) Within ten working days of the close of the arbitration proceeding, the 
1121.16 	administrative law judge shall issue findings and recommendations regarding each of the 
1121.17 	deficiencies in dispute. The findings shall be one or more of the following:
1121.18 	(1) Supported in full. The citation is supported in full, with no deletion of findings and 
1121.19 	no change in the scope or severity assigned to the deficiency citation.
1121.20 	(2) Supported in substance. The citation is supported, but one or more findings are 
1121.21 	deleted without any change in the scope or severity assigned to the deficiency.
1121.22 	(3) Deficient practice cited under wrong requirement of participation. The citation is 
1121.23 	amended by moving it to the correct requirement of participation.
1121.24 	(4) Scope not supported. The citation is amended through a change in the scope assigned 
1121.25 	to the citation.
1121.26 	(5) Severity not supported. The citation is amended through a change in the severity 
1121.27 	assigned to the citation.
1121.28 	(6) No deficient practice. The citation is deleted because the findings did not support 
1121.29 	the citation or the negative resident outcome was unavoidable. The findings of the arbitrator 
1121.30 	are not binding on the commissioner.
1121.31 	(i) The findings and recommendations of the administrative law judge are not binding 
1121.32 	on the commissioner.
1122.1 	(j) Within ten calendar days of receiving the administrative law judge's findings and 
1122.2 	recommendations, the commissioner shall issue a recommendation to the Center for Medicare 
1122.3 	and Medicaid Services.
1122.4 	(e) (k) The commissioner shall reimburse the Office of Administrative Hearings for the 
1122.5 	costs incurred by that office for the arbitration proceeding. The facility shall reimburse the 
1122.6 	commissioner for the proportion of the costs that represent the sum of deficiency citations 
1122.7 	supported in full under paragraph (d), clause (1), or in substance under paragraph (d), clause 
1122.8 	(2), divided by the total number of deficiencies disputed. A deficiency citation for which 
1122.9 	the administrative law judge's sole finding is that the deficient practice was cited under the 
1122.10 	wrong requirements of participation shall not be counted in the numerator or denominator 
1122.11 	in the calculation of the proportion of costs.

1122.12 	EFFECTIVE DATE. This section is effective October 1, 2024, or upon federal approval, 
1122.13 	whichever is later, and applies to appeals of deficiencies which are issued after October 1, 
1122.14 	2024, or on or after the date upon which federal approval is obtained, whichever is later. 
1122.15 	The commissioner of health shall notify the revisor of statutes when federal approval is 
1122.16 	obtained.

1122.17 	Sec. 37. Minnesota Statutes 2022, section 144A.471, is amended by adding a subdivision 
1122.18 	to read:
1122.19 		Subd. 1a.Licensure under other law. A home care licensee must not provide sleeping 
1122.20 	accommodations as a provision of home care services. For purposes of this subdivision, the 
1122.21 	provision of sleeping accommodations and assisted living services under section 144G.08, 
1122.22 	subdivision 9, requires assisted living facility licensure under chapter 144G. This subdivision 
1122.23 	does not apply to those settings exempt from assisted living facility licensure under section 
1122.24 	144G.08, subdivision 7.

1122.25 	Sec. 38. Minnesota Statutes 2022, section 144A.474, subdivision 13, is amended to read:
1122.26 		Subd. 13.Home care surveyor training. (a) Before conducting a home care survey, 
1122.27 	each home care surveyor must receive training on the following topics:
1122.28 	(1) Minnesota home care licensure requirements;
1122.29 	(2) Minnesota home care bill of rights;
1122.30 	(3) Minnesota Vulnerable Adults Act and reporting of maltreatment of minors;
1122.31 	(4) principles of documentation;
1123.1 	(5) survey protocol and processes;
1123.2 	(6) Offices of the Ombudsman roles;
1123.3 	(7) Office of Health Facility Complaints;
1123.4 	(8) Minnesota landlord-tenant and housing with services laws;
1123.5 	(9) types of payors for home care services; and
1123.6 	(10) Minnesota Nurse Practice Act for nurse surveyors.
1123.7 	(b) Materials used for the training in paragraph (a) shall be posted on the department 
1123.8 	website. Requisite understanding of these topics will be reviewed as part of the quality 
1123.9 	improvement plan in section 144A.483.

1123.10 	Sec. 39. Minnesota Statutes 2023 Supplement, section 144A.4791, subdivision 10, is 
1123.11 	amended to read:
1123.12 		Subd. 10.Termination of service plan. (a) If a home care provider terminates a service 
1123.13 	plan with a client, and the client continues to need home care services, the home care provider 
1123.14 	shall provide the client and the client's representative, if any, with a written notice of 
1123.15 	termination which includes the following information:
1123.16 	(1) the effective date of termination;
1123.17 	(2) the reason for termination;
1123.18 	(3) for clients age 18 or older, a statement that the client may contact the Office of 
1123.19 	Ombudsman for Long-Term Care to request an advocate to assist regarding the termination 
1123.20 	and contact information for the office, including the office's central telephone number;
1123.21 	(4) a list of known licensed home care providers in the client's immediate geographic 
1123.22 	area;
1123.23 	(5) a statement that the home care provider will participate in a coordinated transfer of 
1123.24 	care of the client to another home care provider, health care provider, or caregiver, as 
1123.25 	required by the home care bill of rights, section 144A.44, subdivision 1, clause (17); and
1123.26 	(6) the name and contact information of a person employed by the home care provider 
1123.27 	with whom the client may discuss the notice of termination; and.
1123.28 	(7) if applicable, a statement that the notice of termination of home care services does 
1123.29 	not constitute notice of termination of any housing contract.
1124.1 	(b) When the home care provider voluntarily discontinues services to all clients, the 
1124.2 	home care provider must notify the commissioner, lead agencies, and ombudsman for 
1124.3 	long-term care about its clients and comply with the requirements in this subdivision.

1124.4 	Sec. 40. Minnesota Statutes 2022, section 144E.16, subdivision 7, is amended to read:
1124.5 		Subd. 7.Stroke transport protocols. Regional emergency medical services programs 
1124.6 	and any ambulance service licensed under this chapter must develop stroke transport 
1124.7 	protocols. The protocols must include standards of care for triage and transport of acute 
1124.8 	stroke patients within a specific time frame from symptom onset until transport to the most 
1124.9 	appropriate designated acute stroke ready hospital, primary stroke center, 
1124.10 	thrombectomy-capable stroke center, or comprehensive stroke center.

1124.11 	Sec. 41. Minnesota Statutes 2022, section 144G.08, subdivision 29, is amended to read:
1124.12 		Subd. 29.Licensed health professional. "Licensed health professional" means a person 
1124.13 	licensed in Minnesota to practice a profession described in section 214.01, subdivision 2, 
1124.14 	other than a registered nurse or licensed practical nurse, who provides assisted living services 
1124.15 	within the scope of practice of that person's health occupation license, registration, or 
1124.16 	certification as a regulated person who is licensed by an appropriate Minnesota state board 
1124.17 	or agency.

1124.18 	Sec. 42. Minnesota Statutes 2022, section 144G.10, is amended by adding a subdivision 
1124.19 	to read:
1124.20 		Subd. 5.Protected title; restriction on use. (a) Effective January 1, 2026, no person 
1124.21 	or entity may use the phrase "assisted living," whether alone or in combination with other 
1124.22 	words and whether orally or in writing, to: advertise; market; or otherwise describe, offer, 
1124.23 	or promote itself, or any housing, service, service package, or program that it provides 
1124.24 	within this state, unless the person or entity is a licensed assisted living facility that meets 
1124.25 	the requirements of this chapter. A person or entity entitled to use the phrase "assisted living" 
1124.26 	shall use the phrase only in the context of its participation that meets the requirements of 
1124.27 	this chapter.
1124.28 	(b) Effective January 1, 2026, the licensee's name for a new assisted living facility may 
1124.29 	not include the terms "home care" or "nursing home."

1125.1 	Sec. 43. Minnesota Statutes 2022, section 144G.16, subdivision 6, is amended to read:
1125.2 		Subd. 6.Requirements for notice and transfer. A provisional licensee whose license 
1125.3 	is denied must comply with the requirements for notification and the coordinated move of 
1125.4 	residents in sections 144G.52 and 144G.55. If the license denial is upheld by the 
1125.5 	reconsideration process, the licensee must submit a draft closure plan as required by section 
1125.6 	144G.57 within ten calendar days of receipt of the reconsideration decision, must work with 
1125.7 	the commissioner on any revisions needed to the draft plan, and must have a final closure 
1125.8 	plan submitted and approved within 30 calendar days of receipt of the reconsideration 
1125.9 	decision.

1125.10 	Sec. 44. Minnesota Statutes 2023 Supplement, section 145.561, subdivision 4, is amended 
1125.11 	to read:
1125.12 		Subd. 4.988 telecommunications fee. (a) In compliance with the National Suicide 
1125.13 	Hotline Designation Act of 2020, the commissioner shall impose a monthly statewide fee 
1125.14 	on each subscriber of a wireline, wireless, or IP-enabled voice service at a rate that provides
1125.15 	must pay a monthly fee to provide for the robust creation, operation, and maintenance of a 
1125.16 	statewide 988 suicide prevention and crisis system.
1125.17 	(b) The commissioner shall annually recommend to the Public Utilities Commission an 
1125.18 	adequate and appropriate fee to implement this section. The amount of the fee must comply 
1125.19 	with the limits in paragraph (c). The commissioner shall provide telecommunication service 
1125.20 	providers and carriers a minimum of 45 days' notice of each fee change.
1125.21 	(c) (b) The amount of the 988 telecommunications fee must not be more than 25 is 12
1125.22 	cents per month on or after January 1, 2024, for each consumer access line, including trunk 
1125.23 	equivalents as designated by the commission Public Utilities Commission pursuant to section 
1125.24 	403.11, subdivision 1. The 988 telecommunications fee must be the same for all subscribers.
1125.25 	(d) (c) Each wireline, wireless, and IP-enabled voice telecommunication service provider 
1125.26 	shall collect the 988 telecommunications fee and transfer the amounts collected to the 
1125.27 	commissioner of public safety in the same manner as provided in section 403.11, subdivision 
1125.28 	1, paragraph (d).
1125.29 	(e) (d) The commissioner of public safety shall deposit the money collected from the 
1125.30 	988 telecommunications fee to the 988 special revenue account established in subdivision 
1125.31 	3.
1125.32 	(f) (e) All 988 telecommunications fee revenue must be used to supplement, and not 
1125.33 	supplant, federal, state, and local funding for suicide prevention.
1126.1 	(g) (f) The 988 telecommunications fee amount shall be adjusted as needed to provide 
1126.2 	for continuous operation of the lifeline centers and 988 hotline, volume increases, and 
1126.3 	maintenance.
1126.4 	(h) (g) The commissioner shall annually report to the Federal Communications 
1126.5 	Commission on revenue generated by the 988 telecommunications fee.

1126.6 	EFFECTIVE DATE. This section is effective September 1, 2024.

1126.7 	Sec. 45. Minnesota Statutes 2022, section 146B.03, subdivision 7a, is amended to read:
1126.8 		Subd. 7a.Supervisors. (a) A technician must have been licensed in Minnesota or in a 
1126.9 	jurisdiction with which Minnesota has reciprocity for at least:
1126.10 	(1) two years as a tattoo technician licensed under section 146B.03, subdivision 4, 6, or 
1126.11 	8, in order to supervise a temporary tattoo technician; or
1126.12 	(2) one year as a body piercing technician licensed under section 146B.03, subdivision 
1126.13 	4, 6, or 8, or must have performed at least 500 body piercings, in order to supervise a 
1126.14 	temporary body piercing technician.
1126.15 	(b) Any technician who agrees to supervise more than two temporary tattoo technicians 
1126.16 	during the same time period, or more than four body piercing technicians during the same 
1126.17 	time period, must provide to the commissioner a supervisory plan that describes how the 
1126.18 	technician will provide supervision to each temporary technician in accordance with section 
1126.19 	146B.01, subdivision 28.
1126.20 	(c) The supervisory plan must include, at a minimum:
1126.21 	(1) the areas of practice under supervision;
1126.22 	(2) the anticipated supervision hours per week;
1126.23 	(3) the anticipated duration of the training period; and
1126.24 	(4) the method of providing supervision if there are multiple technicians being supervised 
1126.25 	during the same time period.
1126.26 	(d) If the supervisory plan is terminated before completion of the technician's supervised 
1126.27 	practice, the supervisor must notify the commissioner in writing within 14 days of the change 
1126.28 	in supervision and include an explanation of why the plan was not completed.
1126.29 	(e) The commissioner may refuse to approve as a supervisor a technician who has been 
1126.30 	disciplined in Minnesota or in another jurisdiction after considering the criteria in section 
1126.31 	146B.02, subdivision 10, paragraph (b).

1127.1 	Sec. 46. Minnesota Statutes 2022, section 146B.10, subdivision 1, is amended to read:
1127.2 		Subdivision 1. Licensing fees. (a) The fee for the initial technician licensure application
1127.3 	and biennial licensure renewal application is $420.
1127.4 	(b) The fee for temporary technician licensure application is $240.
1127.5 	(c) The fee for the temporary guest artist license application is $140.
1127.6 	(d) The fee for a dual body art technician license application is $420.
1127.7 	(e) The fee for a provisional establishment license application required in section 146B.02, 
1127.8 	subdivision 5, paragraph (c), is $1,500.
1127.9 	(f) The fee for an initial establishment license application and the two-year license 
1127.10 	renewal period application required in section 146B.02, subdivision 2, paragraph (b), is 
1127.11 	$1,500.
1127.12 	(g) The fee for a temporary body art establishment event permit application is $200.
1127.13 	(h) The commissioner shall prorate the initial two-year technician license fee based on 
1127.14 	the number of months in the initial licensure period. The commissioner shall prorate the 
1127.15 	first renewal fee for the establishment license based on the number of months from issuance 
1127.16 	of the provisional license to the first renewal.
1127.17 	(i) The fee for verification of licensure to other states is $25.
1127.18 	(j) The fee to reissue a provisional establishment license that relocates prior to inspection 
1127.19 	and removal of provisional status is $350. The expiration date of the provisional license 
1127.20 	does not change.
1127.21 	(k) (j) The fee to change an establishment name or establishment type, such as tattoo, 
1127.22 	piercing, or dual, is $50.

1127.23 	Sec. 47. Minnesota Statutes 2022, section 146B.10, subdivision 3, is amended to read:
1127.24 		Subd. 3.Deposit. Fees collected by the commissioner under this section must be deposited 
1127.25 	in the state government special revenue fund. All fees are nonrefundable.

1127.26 	Sec. 48. Minnesota Statutes 2022, section 149A.02, subdivision 3b, is amended to read:
1127.27 		Subd. 3b.Burial site services. "Burial site services" means any services sold or offered 
1127.28 	for sale directly to the public for use in connection with the final disposition of a dead human 
1127.29 	body but does not include services provided under a transportation protection agreement.

1128.1 	Sec. 49. Minnesota Statutes 2022, section 149A.02, subdivision 23, is amended to read:
1128.2 		Subd. 23.Funeral services. (a) "Funeral services" means any services which may be 
1128.3 	used to: (1) care for and prepare dead human bodies for burial, alkaline hydrolysis, cremation, 
1128.4 	or other final disposition; and (2) arrange, supervise, or conduct the funeral ceremony or 
1128.5 	the final disposition of dead human bodies.
1128.6 	(b) Funeral service does not include a transportation protection agreement.

1128.7 	Sec. 50. Minnesota Statutes 2022, section 149A.02, is amended by adding a subdivision 
1128.8 	to read:
1128.9 		Subd. 38a.Transportation protection agreement. "Transportation protection agreement" 
1128.10 	means an agreement that is primarily for the purpose of transportation and subsequent 
1128.11 	transportation of the remains of a dead human body.

1128.12 	Sec. 51. Minnesota Statutes 2022, section 149A.65, is amended to read:
1128.13 	149A.65 FEES.
1128.14 		Subdivision 1.Generally. This section establishes the application fees for registrations, 
1128.15 	examinations, initial and renewal licenses, and late fees authorized under the provisions of 
1128.16 	this chapter.
1128.17 		Subd. 2.Mortuary science fees. Fees for mortuary science are:
1128.18 	(1) $75 for the initial and renewal registration of a mortuary science intern;
1128.19 	(2) $125 for the mortuary science examination;
1128.20 	(3) $200 for issuance of initial and renewal mortuary science licenses license applications;
1128.21 	(4) $100 late fee charge for a license renewal application; and
1128.22 	(5) $250 for issuing a an application for mortuary science license by endorsement.
1128.23 		Subd. 3.Funeral directors. The license renewal application fee for funeral directors is 
1128.24 	$200. The late fee charge for a license renewal is $100.
1128.25 		Subd. 4.Funeral establishments. The initial and renewal application fee for funeral 
1128.26 	establishments is $425. The late fee charge for a license renewal is $100.
1128.27 		Subd. 5.Crematories. The initial and renewal application fee for a crematory is $425. 
1128.28 	The late fee charge for a license renewal is $100.
1129.1 		Subd. 6.Alkaline hydrolysis facilities. The initial and renewal application fee for an 
1129.2 	alkaline hydrolysis facility is $425. The late fee charge for a license renewal is $100.
1129.3 		Subd. 7.State government special revenue fund. Fees collected by the commissioner 
1129.4 	under this section must be deposited in the state treasury and credited to the state government 
1129.5 	special revenue fund. All fees are nonrefundable.

1129.6 	Sec. 52. Minnesota Statutes 2022, section 149A.97, subdivision 2, is amended to read:
1129.7 		Subd. 2.Scope and requirements. This section shall not apply to a transportation 
1129.8 	protection agreement or to any funeral goods or burial site goods purchased and delivered, 
1129.9 	either at purchase or within a commercially reasonable amount of time thereafter. When 
1129.10 	prior to the death of any person, that person or another, on behalf of that person, enters into 
1129.11 	any transaction, makes a contract, or any series or combination of transactions or contracts 
1129.12 	with a funeral provider lawfully doing business in Minnesota, other than an insurance 
1129.13 	company licensed to do business in Minnesota selling approved insurance or annuity 
1129.14 	products, by the terms of which, goods or services related to the final disposition of that 
1129.15 	person will be furnished at-need, then the total of all money paid by the terms of the 
1129.16 	transaction, contract, or series or combination of transactions or contracts shall be held in 
1129.17 	trust for the purpose for which it has been paid. The person for whose benefit the money 
1129.18 	was paid shall be known as the beneficiary, the person or persons who paid the money shall 
1129.19 	be known as the purchaser, and the funeral provider shall be known as the depositor.

1129.20 	Sec. 53. Minnesota Statutes 2022, section 256R.02, subdivision 20, is amended to read:
1129.21 		Subd. 20.Facility average case mix index. "Facility average case mix index" or "CMI" 
1129.22 	means a numerical score that describes the relative resource use for all residents within the 
1129.23 	case mix classifications under the resource utilization group (RUG) classification system 
1129.24 	prescribed by the commissioner based on an assessment of each resident. The facility average 
1129.25 	CMI shall be computed as the standardized days divided by the sum of the facility's resident 
1129.26 	days. The case mix indices used shall be based on the system prescribed in section 256R.17.

1129.27 	Sec. 54. Minnesota Statutes 2022, section 259.52, subdivision 2, is amended to read:
1129.28 		Subd. 2.Requirement to search registry before adoption petition can be granted; 
1129.29 	proof of search. No petition for adoption may be granted unless the agency supervising 
1129.30 	the adoptive placement, the birth mother of the child, the putative father who registered or 
1129.31 	the legal father, or, in the case of a stepparent or relative adoption, the county agency 
1129.32 	responsible for the report required under section 259.53, subdivision 1, requests that the 
1130.1 	commissioner of health search the registry to determine whether a putative father is registered 
1130.2 	in relation to a child who is or may be the subject of an adoption petition. The search required 
1130.3 	by this subdivision must be conducted no sooner than 31 days following the birth of the 
1130.4 	child. A search of the registry may be proven by the production of a certified copy of the 
1130.5 	registration form or by a certified statement of the commissioner of health that after a search 
1130.6 	no registration of a putative father in relation to a child who is or may be the subject of an 
1130.7 	adoption petition could be located. The filing of a certified copy of an order from a juvenile 
1130.8 	protection matter under chapter 260C containing a finding that certification of the requisite 
1130.9 	search of the Minnesota Fathers' Adoption Registry was filed with the court in that matter 
1130.10 	shall also constitute proof of search. Certification that the Minnesota Fathers' Adoption 
1130.11 	Registry has been searched must be filed with the court prior to entry of any final order of 
1130.12 	adoption. In addition to the search required by this subdivision, the agency supervising the 
1130.13 	adoptive placement, the birth mother of the child, or, in the case of a stepparent or relative 
1130.14 	adoption, the social services agency responsible for the report under section 259.53, 
1130.15 	subdivision 1, or the responsible social services agency that is a petitioner in a juvenile 
1130.16 	protection matter under chapter 260C may request that the commissioner of health search 
1130.17 	the registry at any time. Search requirements of this section do not apply when the responsible 
1130.18 	social services agency is proceeding under Safe Place for Newborns, section 260C.139.

1130.19 	Sec. 55. Minnesota Statutes 2022, section 259.52, subdivision 4, is amended to read:
1130.20 		Subd. 4.Classification of registry data. (a) Data in the fathers' adoption registry, 
1130.21 	including all data provided in requesting the search of the registry, are private data on 
1130.22 	individuals, as defined in section 13.02, subdivision 2, and are nonpublic data with respect 
1130.23 	to data not on individuals, as defined in section 13.02, subdivision 9. Data in the registry 
1130.24 	may be released to:
1130.25 	(1) a person who is required to search the registry under subdivision 2, if the data relate 
1130.26 	to the child who is or may be the subject of the adoption petition;
1130.27 	(2) the mother of the child listed on the putative father's registration form who the 
1130.28 	commissioner of health is required to notify under subdivision 1, paragraph (c);
1130.29 	(3) the putative father who registered himself or the legal father;
1130.30 	(4) a public authority as provided in subdivision 3; or
1130.31 	(4) (5) an attorney who has signed an affidavit from the commissioner of health attesting 
1130.32 	that the attorney represents the birth mother, the putative or legal father, or the prospective 
1130.33 	adoptive parents.
1131.1 	(b) A person who receives data under this subdivision may use the data only for purposes 
1131.2 	authorized under this section or other law.

1131.3 	Sec. 56. REVISOR INSTRUCTION.
 1131.4 	The revisor of statutes shall substitute the term "employee" with the term "staff" in the 
1131.5 	following sections of Minnesota Statutes and make any grammatical changes needed without 
1131.6 	changing the meaning of the sentence: Minnesota Statutes, sections 144G.08, subdivisions 
1131.7 	18 and 36; 144G.13, subdivision 1, paragraph (c); 144G.20, subdivisions 1, 2, and 21; 
1131.8 	144G.30, subdivision 5; 144G.42, subdivision 8; 144G.45, subdivision 2; 144G.60, 
1131.9 	subdivisions 1, paragraph (c), and 3, paragraph (a); 144G.63, subdivision 2, paragraph (a), 
1131.10 	clause (9); 144G.64, paragraphs (a), clauses (2), (3), and (5), and (c); 144G.70, subdivision 
1131.11 	7; and 144G.92, subdivisions 1 and 3.

1131.12 	Sec. 57. REPEALER.
 1131.13 	(a) Minnesota Statutes 2022, sections 144.218, subdivision 3; 144.497; and 256R.02, 
1131.14 	subdivision 46, are repealed.
1131.15 	(b) Minnesota Statutes 2023 Supplement, section 62J.312, subdivision 6, is repealed.

1131.16 	ARTICLE 60
1131.17 	PHARMACY BOARD AND PRACTICE

1131.18 	Section 1. Minnesota Statutes 2023 Supplement, section 62Q.46, subdivision 1, is amended 
1131.19 	to read:
1131.20 		Subdivision 1.Coverage for preventive items and services. (a) "Preventive items and 
1131.21 	services" has the meaning specified in the Affordable Care Act. Preventive items and services 
1131.22 	includes:
1131.23 	(1) evidence-based items or services that have in effect a rating of A or B in the current 
1131.24 	recommendations of the United States Preventive Services Task Force with respect to the 
1131.25 	individual involved;
1131.26 	(2) immunizations for routine use in children, adolescents, and adults that have in effect 
1131.27 	a recommendation from the Advisory Committee on Immunization Practices of the Centers 
1131.28 	for Disease Control and Prevention with respect to the individual involved. For purposes 
1131.29 	of this clause, a recommendation from the Advisory Committee on Immunization Practices 
1131.30 	of the Centers for Disease Control and Prevention is considered in effect after the 
1131.31 	recommendation has been adopted by the Director of the Centers for Disease Control and 
1132.1 	Prevention, and a recommendation is considered to be for routine use if the recommendation 
1132.2 	is listed on the Immunization Schedules of the Centers for Disease Control and Prevention;
1132.3 	(3) with respect to infants, children, and adolescents, evidence-informed preventive care 
1132.4 	and screenings provided for in comprehensive guidelines supported by the Health Resources 
1132.5 	and Services Administration;
1132.6 	(4) with respect to women, additional preventive care and screenings that are not listed 
1132.7 	with a rating of A or B by the United States Preventive Services Task Force but that are 
1132.8 	provided for in comprehensive guidelines supported by the Health Resources and Services 
1132.9 	Administration;
1132.10 	(5) all contraceptive methods established in guidelines published by the United States 
1132.11 	Food and Drug Administration;
1132.12 	(6) screenings for human immunodeficiency virus for:
1132.13 	(i) all individuals at least 15 years of age but less than 65 years of age; and
1132.14 	(ii) all other individuals with increased risk of human immunodeficiency virus infection 
1132.15 	according to guidance from the Centers for Disease Control;
1132.16 	(7) all preexposure prophylaxis when used for the prevention or treatment of human 
1132.17 	immunodeficiency virus, including but not limited to all preexposure prophylaxis, as defined 
1132.18 	in any guidance by the United States Preventive Services Task Force or the Centers for 
1132.19 	Disease Control, including the June 11, 2019, Preexposure Prophylaxis for the Prevention 
1132.20 	of HIV Infection United States Preventive Services Task Force Recommendation Statement; 
1132.21 	and
1132.22 	(8) all postexposure prophylaxis when used for the prevention or treatment of human 
1132.23 	immunodeficiency virus, including but not limited to all postexposure prophylaxis as defined 
1132.24 	in any guidance by the United States Preventive Services Task Force or the Centers for 
1132.25 	Disease Control.
1132.26 	(b) A health plan company must provide coverage for preventive items and services at 
1132.27 	a participating provider without imposing cost-sharing requirements, including a deductible, 
1132.28 	coinsurance, or co-payment. Nothing in this section prohibits a health plan company that 
1132.29 	has a network of providers from excluding coverage or imposing cost-sharing requirements 
1132.30 	for preventive items or services that are delivered by an out-of-network provider.
1132.31 	(c) A health plan company is not required to provide coverage for any items or services 
1132.32 	specified in any recommendation or guideline described in paragraph (a) if the 
1132.33 	recommendation or guideline is no longer included as a preventive item or service as defined 
1133.1 	in paragraph (a). Annually, a health plan company must determine whether any additional 
1133.2 	items or services must be covered without cost-sharing requirements or whether any items 
1133.3 	or services are no longer required to be covered.
1133.4 	(d) Nothing in this section prevents a health plan company from using reasonable medical 
1133.5 	management techniques to determine the frequency, method, treatment, or setting for a 
1133.6 	preventive item or service to the extent not specified in the recommendation or guideline.
1133.7 	(e) A health plan shall not require prior authorization or step therapy for preexposure 
1133.8 	prophylaxis or postexposure prophylaxis, except that: if the United States Food and Drug 
1133.9 	Administration has approved one or more therapeutic equivalents of a drug, device, or 
1133.10 	product for the prevention of HIV, this paragraph does not require a health plan to cover 
1133.11 	all of the therapeutically equivalent versions without prior authorization or step therapy, if 
1133.12 	at least one therapeutically equivalent version is covered without prior authorization or step 
1133.13 	therapy.
1133.14 	(e) (f) This section does not apply to grandfathered plans.
1133.15 	(f) (g) This section does not apply to plans offered by the Minnesota Comprehensive 
1133.16 	Health Association.

1133.17 	EFFECTIVE DATE. This section is effective January 1, 2026, and applies to health 
1133.18 	plans offered, issued, or renewed on or after that date.

1133.19 	Sec. 2. Minnesota Statutes 2022, section 151.01, subdivision 23, is amended to read:
1133.20 		Subd. 23.Practitioner. "Practitioner" means a licensed doctor of medicine, licensed 
1133.21 	doctor of osteopathic medicine duly licensed to practice medicine, licensed doctor of 
1133.22 	dentistry, licensed doctor of optometry, licensed podiatrist, licensed veterinarian, licensed 
1133.23 	advanced practice registered nurse, or licensed physician assistant. For purposes of sections 
1133.24 	151.15, subdivision 4; 151.211, subdivision 3; 151.252, subdivision 3; 151.37, subdivision 
1133.25 	2, paragraph (b); and 151.461, "practitioner" also means a dental therapist authorized to 
1133.26 	dispense and administer under chapter 150A. For purposes of sections 151.252, subdivision 
1133.27 	3, and 151.461, "practitioner" also means a pharmacist authorized to prescribe 
1133.28 	self-administered hormonal contraceptives, nicotine replacement medications, or opiate 
1133.29 	antagonists under section 151.37, subdivision 14, 15, or 16, or authorized to prescribe drugs 
1133.30 	to prevent the acquisition of human immunodeficiency virus (HIV) under section 151.37, 
1133.31 	subdivision 17.

1133.32 	EFFECTIVE DATE. This section is effective January 1, 2025.

1134.1 	Sec. 3. Minnesota Statutes 2022, section 151.01, subdivision 27, is amended to read:
1134.2 		Subd. 27.Practice of pharmacy. "Practice of pharmacy" means:
1134.3 	(1) interpretation and evaluation of prescription drug orders;
1134.4 	(2) compounding, labeling, and dispensing drugs and devices (except labeling by a 
1134.5 	manufacturer or packager of nonprescription drugs or commercially packaged legend drugs 
1134.6 	and devices);
1134.7 	(3) participation in clinical interpretations and monitoring of drug therapy for assurance 
1134.8 	of safe and effective use of drugs, including the performance of ordering and performing
1134.9 	laboratory tests that are waived under the federal Clinical Laboratory Improvement Act of 
1134.10 	1988, United States Code, title 42, section 263a et seq., provided that a pharmacist may 
1134.11 	interpret the results of laboratory tests but may modify A pharmacist may collect specimens, 
1134.12 	interpret results, notify the patient of results, and refer the patient to other health care 
1134.13 	providers for follow-up care and may initiate, modify, or discontinue drug therapy only 
1134.14 	pursuant to a protocol or collaborative practice agreement. A pharmacist may delegate the 
1134.15 	authority to administer tests under this clause to a pharmacy technician or pharmacy intern. 
1134.16 	A pharmacy technician or pharmacy intern may perform tests authorized under this clause 
1134.17 	if the technician or intern is working under the direct supervision of a pharmacist;
1134.18 	(4) participation in drug and therapeutic device selection; drug administration for first 
1134.19 	dosage and medical emergencies; intramuscular and subcutaneous drug administration under 
1134.20 	a prescription drug order; drug regimen reviews; and drug or drug-related research;
1134.21 	(5) drug administration, through intramuscular and subcutaneous administration used 
1134.22 	to treat mental illnesses as permitted under the following conditions:
1134.23 	(i) upon the order of a prescriber and the prescriber is notified after administration is 
1134.24 	complete; or
1134.25 	(ii) pursuant to a protocol or collaborative practice agreement as defined by section 
1134.26 	151.01, subdivisions 27b and 27c, and participation in the initiation, management, 
1134.27 	modification, administration, and discontinuation of drug therapy is according to the protocol 
1134.28 	or collaborative practice agreement between the pharmacist and a dentist, optometrist, 
1134.29 	physician, physician assistant, podiatrist, or veterinarian, or an advanced practice registered 
1134.30 	nurse authorized to prescribe, dispense, and administer under section 148.235. Any changes 
1134.31 	in drug therapy or medication administration made pursuant to a protocol or collaborative 
1134.32 	practice agreement must be documented by the pharmacist in the patient's medical record 
1134.33 	or reported by the pharmacist to a practitioner responsible for the patient's care;
1135.1 	(6) participation in administration of influenza vaccines andinitiating, ordering, and 
1135.2 	administering influenza and COVID-19 or SARS-CoV-2 vaccines authorized or approved 
1135.3 	by the United States Food and Drug Administration related to COVID-19 or SARS-CoV-2
1135.4 	to all eligible individuals six three years of age and older and all other United States Food 
1135.5 	and Drug Administration-approved vaccines to patients 13 six years of age and older by 
1135.6 	written protocol with a physician licensed under chapter 147, a physician assistant authorized 
1135.7 	to prescribe drugs under chapter 147A, or an advanced practice registered nurse authorized 
1135.8 	to prescribe drugs under section 148.235, provided that according to the federal Advisory 
1135.9 	Committee on Immunization Practices recommendations. A pharmacist may delegate the 
1135.10 	authority to administer vaccines under this clause to a pharmacy technician or pharmacy 
1135.11 	intern who has completed training in vaccine administration if:
1135.12 	(i) the protocol includes, at a minimum:
1135.13 	(A) the name, dose, and route of each vaccine that may be given;
1135.14 	(B) the patient population for whom the vaccine may be given;
1135.15 	(C) contraindications and precautions to the vaccine;
1135.16 	(D) the procedure for handling an adverse reaction;
1135.17 	(E) the name, signature, and address of the physician, physician assistant, or advanced 
1135.18 	practice registered nurse;
1135.19 	(F) a telephone number at which the physician, physician assistant, or advanced practice 
1135.20 	registered nurse can be contacted; and
1135.21 	(G) the date and time period for which the protocol is valid;
1135.22 	(ii) (i) the pharmacist has and the pharmacy technician or pharmacy intern have
1135.23 	successfully completed a program approved by the Accreditation Council for Pharmacy 
1135.24 	Education (ACPE) specifically for the administration of immunizations or a program 
1135.25 	approved by the board;
1135.26 	(iii) (ii) the pharmacist utilizes the Minnesota Immunization Information Connection to 
1135.27 	assess the immunization status of individuals prior to the administration of vaccines, except 
1135.28 	when administering influenza vaccines to individuals age nine and older;
1135.29 	(iv) (iii) the pharmacist reports the administration of the immunization to the Minnesota 
1135.30 	Immunization Information Connection; and
1135.31 	(v) the pharmacist complies with guidelines for vaccines and immunizations established 
1135.32 	by the federal Advisory Committee on Immunization Practices, except that a pharmacist 
1136.1 	does not need to comply with those portions of the guidelines that establish immunization 
1136.2 	schedules when administering a vaccine pursuant to a valid, patient-specific order issued 
1136.3 	by a physician licensed under chapter 147, a physician assistant authorized to prescribe 
1136.4 	drugs under chapter 147A, or an advanced practice registered nurse authorized to prescribe 
1136.5 	drugs under section 148.235, provided that the order is consistent with the United States 
1136.6 	Food and Drug Administration approved labeling of the vaccine;
1136.7 	(iv) if the patient is 18 years of age or younger, the pharmacist, pharmacy technician, 
1136.8 	or pharmacy intern informs the patient and any adult caregiver accompanying the patient 
1136.9 	of the importance of a well-child visit with a pediatrician or other licensed primary care 
1136.10 	provider; and
1136.11 	(v) in the case of a pharmacy technician administering vaccinations while being 
1136.12 	supervised by a licensed pharmacist:
1136.13 	(A) the supervision is in-person and must not be done through telehealth as defined 
1136.14 	under section 62A.673, subdivision 2;
1136.15 	(B) the pharmacist is readily and immediately available to the immunizing pharmacy 
1136.16 	technician;
1136.17 	(C) the pharmacy technician has a current certificate in basic cardiopulmonary 
1136.18 	resuscitation;
1136.19 	(D) the pharmacy technician has completed a minimum of two hours of ACPE-approved, 
1136.20 	immunization-related continuing pharmacy education as part of the pharmacy technician's 
1136.21 	two-year continuing education schedule; and
1136.22 	(E) the pharmacy technician has completed one of two training programs listed under 
1136.23 	Minnesota Rules, part 6800.3850, subpart 1h, item B;
1136.24 	(7) participation in the initiation, management, modification, and discontinuation of 
1136.25 	drug therapy according to a written protocol or collaborative practice agreement between: 
1136.26 	(i) one or more pharmacists and one or more dentists, optometrists, physicians, physician 
1136.27 	assistants, podiatrists, or veterinarians; or (ii) one or more pharmacists and one or more 
1136.28 	physician assistants authorized to prescribe, dispense, and administer under chapter 147A, 
1136.29 	or advanced practice registered nurses authorized to prescribe, dispense, and administer 
1136.30 	under section 148.235. Any changes in drug therapy made pursuant to a protocol or 
1136.31 	collaborative practice agreement must be documented by the pharmacist in the patient's 
1136.32 	medical record or reported by the pharmacist to a practitioner responsible for the patient's 
1136.33 	care;
1137.1 	(8) participation in the storage of drugs and the maintenance of records;
1137.2 	(9) patient counseling on therapeutic values, content, hazards, and uses of drugs and 
1137.3 	devices;
1137.4 	(10) offering or performing those acts, services, operations, or transactions necessary 
1137.5 	in the conduct, operation, management, and control of a pharmacy;
1137.6 	(11) participation in the initiation, management, modification, and discontinuation of 
1137.7 	therapy with opiate antagonists, as defined in section 604A.04, subdivision 1, pursuant to:
1137.8 	(i) a written protocol as allowed under clause (7); or
1137.9 	(ii) a written protocol with a community health board medical consultant or a practitioner 
1137.10 	designated by the commissioner of health, as allowed under section 151.37, subdivision 13;
1137.11 	(12) prescribing self-administered hormonal contraceptives; nicotine replacement 
1137.12 	medications; and opiate antagonists for the treatment of an acute opiate overdose pursuant 
1137.13 	to section 151.37, subdivision 14, 15, or 16; and
1137.14 	(13) participation in the placement of drug monitoring devices according to a prescription, 
1137.15 	protocol, or collaborative practice agreement.;
1137.16 	(14) prescribing, dispensing, and administering drugs for preventing the acquisition of 
1137.17 	human immunodeficiency virus (HIV) if the pharmacist meets the requirements in section 
1137.18 	151.37, subdivision 17; and
1137.19 	(15) ordering, conducting, and interpreting laboratory tests necessary for therapies that 
1137.20 	use drugs for preventing the acquisition of HIV, if the pharmacist meets the requirements 
1137.21 	in section 151.37, subdivision 17.

1137.22 	EFFECTIVE DATE. This section is effective July 1, 2024, except that clauses (14) 
1137.23 	and (15) are effective January 1, 2026.

1137.24 	Sec. 4. Minnesota Statutes 2022, section 151.065, is amended by adding a subdivision to 
1137.25 	read:
1137.26 		Subd. 4a.Application and fee; relocation. A person who is registered with or licensed 
1137.27 	by the board must submit a new application to the board before relocating the physical 
1137.28 	location of the person's business. An application must be submitted for each affected license. 
1137.29 	The application must set forth the proposed change of location on a form established by the 
1137.30 	board. If the licensee or registrant remitted payment for the full amount during the state's 
1137.31 	fiscal year, the relocation application fee is the same as the application fee in subdivision 
1137.32 	1, except that the fees in clauses (6) to (9) and (11) to (16) are reduced by $5,000 and the 
1138.1 	fee in clause (16) is reduced by $55,000. If the application is made within 60 days before 
1138.2 	the date of the original license or registration expiration, the applicant must pay the full 
1138.3 	application fee provided in subdivision 1. Upon approval of an application for a relocation, 
1138.4 	the board shall issue a new license or registration.

1138.5 	Sec. 5. Minnesota Statutes 2022, section 151.065, is amended by adding a subdivision to 
1138.6 	read:
1138.7 		Subd. 4b.Application and fee; change of ownership. A person who is registered with 
1138.8 	or licensed by the board must submit a new application to the board before changing the 
1138.9 	ownership of the licensee or registrant. An application must be submitted for each affected 
1138.10 	license. The application must set forth the proposed change of ownership on a form 
1138.11 	established by the board. If the licensee or registrant remitted payment for the full amount 
1138.12 	during the state's fiscal year, the application fee is the same as the application fee in 
1138.13 	subdivision 1, except that the fees in clauses (6) to (9) and (11) to (16) are reduced by $5,000 
1138.14 	and the fee in clause (16) is reduced by $55,000. If the application is made within 60 days 
1138.15 	before the date of the original license or registration expiration, the applicant must pay the 
1138.16 	full application fee provided in subdivision 1. Upon approval of an application for a change 
1138.17 	of ownership, the board shall issue a new license or registration.

1138.18 	Sec. 6. Minnesota Statutes 2022, section 151.065, is amended by adding a subdivision to 
1138.19 	read:
1138.20 		Subd. 8.Transfer of licenses. Licenses and registrations granted by the board are not 
1138.21 	transferable.

1138.22 	Sec. 7. Minnesota Statutes 2022, section 151.066, subdivision 1, is amended to read:
1138.23 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
1138.24 	the meanings given to them in this subdivision.
1138.25 	(b) "Manufacturer" means a manufacturer licensed under section 151.252that is engaged 
1138.26 	in the manufacturing of an opiate, excluding those exclusively licensed to manufacture 
1138.27 	medical gas.
1138.28 	(c) "Opiate" means any opiate-containing controlled substance listed in section 152.02, 
1138.29 	subdivisions 3 to 5, that is distributed, delivered, sold, or dispensed into or within this state.
1138.30 	(d) "Third-party logistics provider" means a third-party logistics provider licensed under 
1138.31 	section 151.471.
1139.1 	(e) "Wholesaler" means a wholesale drug distributor licensed under section 151.47that 
1139.2 	is engaged in the wholesale drug distribution of an opiate, excluding those exclusively 
1139.3 	licensed to distribute medical gas.

1139.4 	Sec. 8. Minnesota Statutes 2022, section 151.066, subdivision 2, is amended to read:
1139.5 		Subd. 2.Reporting requirements. (a) By March 1 of each year, beginning March 1, 
1139.6 	2020, each manufacturer and each wholesaler must report to the board every sale, delivery, 
1139.7 	or other distribution within or into this state of any opiate that is made to any practitioner, 
1139.8 	pharmacy, hospital, veterinary hospital, or other person who is permitted by section 151.37 
1139.9 	to possess controlled substances for administration or dispensing to patients that occurred 
1139.10 	during the previous calendar year. Reporting must be in the automation of reports and 
1139.11 	consolidated orders system format unless otherwise specified by the board. If no reportable 
1139.12 	distributions occurred for a given year, notification must be provided to the board in a 
1139.13 	manner specified by the board. If a manufacturer or wholesaler fails to provide information 
1139.14 	required under this paragraph on a timely basis, the board may assess an administrative 
1139.15 	penalty of $500 per day. This penalty shall not be considered a form of disciplinary action.
1139.16 	(b) By March 1 of each year, beginning March 1, 2020, each owner of a pharmacy with 
1139.17 	at least one location within this state must report to the board any intracompany delivery 
1139.18 	or distribution into this state, of any opiate, to the extent that those deliveries and distributions 
1139.19 	are not reported to the board by a licensed wholesaler owned by, under contract to, or 
1139.20 	otherwise operating on behalf of the owner of the pharmacy. Reporting must be in the 
1139.21 	manner and format specified by the board for deliveries and distributions that occurred 
1139.22 	during the previous calendar year. The report must include the name of the manufacturer 
1139.23 	or wholesaler from which the owner of the pharmacy ultimately purchased the opiate, and 
1139.24 	the amount and date that the purchase occurred.
1139.25 	(c) By March 1 of each year, beginning March 1, 2025, each third-party logistics provider 
1139.26 	must report to the board any delivery or distribution into this state of any opiate, to the 
1139.27 	extent that those deliveries and distributions are not reported to the board by a licensed 
1139.28 	wholesaler or manufacturer. Reporting must be in the manner and format specified by the 
1139.29 	board for deliveries and distributions that occurred during the previous calendar year.

1139.30 	Sec. 9. Minnesota Statutes 2022, section 151.066, subdivision 3, is amended to read:
1139.31 		Subd. 3.Determination of an opiate product registration fee. (a) The board shall 
1139.32 	annually assess an opiate product registration fee on any manufacturer of an opiate that 
1140.1 	annually sells, delivers, or distributes an opiate within or into the state in a quantity of 
1140.2 	2,000,000 or more units as reported to the board under subdivision 2.
1140.3 	(b) For purposes of assessing the annual registration fee under this section and 
1140.4 	determining the number of opiate units a manufacturer sold, delivered, or distributed within 
1140.5 	or into the state, the board shall not consider any opiate that is used for substance use disorder 
1140.6 	treatment with medications for opioid use disorder.
1140.7 	(c) The annual registration fee for each manufacturer meeting the requirement under 
1140.8 	paragraph (a) is $250,000.
1140.9 	(d) In conjunction with the data reported under this section, and notwithstanding section 
1140.10 	152.126, subdivision 6, the board may use the data reported under section 152.126, 
1140.11 	subdivision 4, to determine which manufacturers meet the requirement under paragraph (a) 
1140.12 	and are required to pay the registration fees under this subdivision.
1140.13 	(e) By April 1 of each year, beginning April 1, 2020, the board shall notify a manufacturer 
1140.14 	that the manufacturer meets the requirement in paragraph (a) and is required to pay the 
1140.15 	annual registration fee in accordance with section 151.252, subdivision 1, paragraph (b).
1140.16 	(f) A manufacturer may dispute the board's determination that the manufacturer must 
1140.17 	pay the registration fee no later than 30 days after the date of notification. However, the 
1140.18 	manufacturer must still remit the fee as required by section 151.252, subdivision 1, paragraph 
1140.19 	(b). The dispute must be filed with the board in the manner and using the forms specified 
1140.20 	by the board. A manufacturer must submit, with the required forms, data satisfactory to the 
1140.21 	board that demonstrates that the assessment of the registration fee was incorrect. The board 
1140.22 	must make a decision concerning a dispute no later than 60 days after receiving the required 
1140.23 	dispute forms. If the board determines that the manufacturer has satisfactorily demonstrated 
1140.24 	that the fee was incorrectly assessed, the board must refund the amount paid in error.
1140.25 	(g) For purposes of this subdivision, a unit means the individual dosage form of the 
1140.26 	particular drug product that is prescribed to the patient. One unit equals one tablet, capsule, 
1140.27 	patch, syringe, milliliter, or gram.
1140.28 	(h) For the purposes of this subdivision, an opiate's units will be assigned to the 
1140.29 	manufacturer holding the New Drug Application (NDA) or Abbreviated New Drug 
1140.30 	Application (ANDA), as listed by the United States Food and Drug Administration.

1140.31 	Sec. 10. Minnesota Statutes 2022, section 151.212, is amended by adding a subdivision 
1140.32 	to read:
1140.33 		Subd. 4.Accessible prescription drug container labels. (a) A pharmacy must:
1141.1 	(1) make reasonable efforts to inform the public that an accessible prescription drug 
1141.2 	container label is available at no additional cost, upon request of the patient or the patient's 
1141.3 	representative, to any patient who has difficulty seeing or reading standard printed labels 
1141.4 	on prescription drug containers; and
1141.5 	(2) if the pharmacy knows that the patient has difficulty seeing or reading standard 
1141.6 	printed labels on prescription drug containers, inform a patient that an accessible prescription 
1141.7 	drug container label is available at no additional cost upon request of the patient or the 
1141.8 	patient's representative.
1141.9 	(b) Subject to paragraph (e), if a patient requests an accessible container label, the 
1141.10 	pharmacy must provide the patient with a prescription drug container label in large print, 
1141.11 	Braille, or may provide any other method included in the best practices for access to 
1141.12 	prescription drug labeling information by the United States Access Board, or its successor 
1141.13 	organization, depending on the need and preference of the patient. The pharmacy must make 
1141.14 	reasonable efforts to ensure patient safety and access during the time it takes to provide the 
1141.15 	requested method of accessibility.
1141.16 	(c) The accessible container label must:
1141.17 	(1) be affixed on the container in compliance with section 151.212, subdivision 1;
1141.18 	(2) last for at least the duration of the prescription;
1141.19 	(3) contain the information required under subdivisions 1 and 2;
1141.20 	(4) be available in a timely manner relative to the industry standard time required to 
1141.21 	produce the accessible container label; and
1141.22 	(5) conform with the best practices established by the United States Access Board, or 
1141.23 	its successor organization, for large print and Braille accessible container labels.
1141.24 	(d) By January 1, 2025, the commissioner of health must publish a list of pharmacies 
1141.25 	that have informed the commissioner that the pharmacy has the technological capacity to 
1141.26 	provide an accessible container label to a patient in the timely manner required by paragraph 
1141.27 	(c), clause (4). The commissioner must update this list on a quarterly basis until January 1, 
1141.28 	2026.
1141.29 	(e) Until January 1, 2026, if the pharmacy does not have the technological capacity to 
1141.30 	provide an accessible container label to a patient in the timely manner required by paragraph 
1141.31 	(c), clause (4), the pharmacy is not required to provide an accessible container label to a 
1141.32 	patient requesting such a label, but the pharmacy must inform the patient of the list of 
1141.33 	pharmacies with such capacity required pursuant to paragraph (d), if such list is published.
1142.1 	(f) On and after January 1, 2026, all pharmacies must be able to provide an accessible 
1142.2 	container label in the timely manner required by paragraph (c), clause (4).
1142.3 	(g) This subdivision does not apply to prescription drugs dispensed and administered 
1142.4 	by a correctional institution.

1142.5 	EFFECTIVE DATE. This section is effective January 1, 2025.

1142.6 	Sec. 11. Minnesota Statutes 2022, section 151.37, is amended by adding a subdivision to 
1142.7 	read:
1142.8 		Subd. 17.Drugs for preventing the acquisition of HIV. (a) A pharmacist is authorized 
1142.9 	to prescribe and administer drugs to prevent the acquisition of human immunodeficiency 
1142.10 	virus (HIV) in accordance with this subdivision.
1142.11 	(b) By January 1, 2025, the Board of Pharmacy shall develop a standardized protocol 
1142.12 	for a pharmacist to follow in prescribing the drugs described in paragraph (a). In developing 
1142.13 	the protocol, the board may consult with community health advocacy groups, the Board of 
1142.14 	Medical Practice, the Board of Nursing, the commissioner of health, professional pharmacy 
1142.15 	associations, and professional associations for physicians, physician assistants, and advanced 
1142.16 	practice registered nurses.
1142.17 	(c) Before a pharmacist is authorized to prescribe a drug described in paragraph (a), the 
1142.18 	pharmacist must successfully complete a training program specifically developed for 
1142.19 	prescribing drugs for preventing the acquisition of HIV that is offered by a college of 
1142.20 	pharmacy, a continuing education provider that is accredited by the Accreditation Council 
1142.21 	for Pharmacy Education, or a program approved by the board. To maintain authorization 
1142.22 	to prescribe, the pharmacist shall complete continuing education requirements as specified 
1142.23 	by the board.
1142.24 	(d) Before prescribing a drug described in paragraph (a), the pharmacist shall follow the 
1142.25 	appropriate standardized protocol developed under paragraph (b) and, if appropriate, may 
1142.26 	dispense to a patient a drug described in paragraph (a).
1142.27 	(e) Before dispensing a drug described in paragraph (a) that is prescribed by the 
1142.28 	pharmacist, the pharmacist must provide counseling to the patient on the use of the drugs 
1142.29 	and must provide the patient with a fact sheet that includes the indications and 
1142.30 	contraindications for the use of these drugs, the appropriate method for using these drugs, 
1142.31 	the need for medical follow up, and any additional information listed in Minnesota Rules, 
1142.32 	part 6800.0910, subpart 2, that is required to be provided to a patient during the counseling 
1142.33 	process.
1143.1 	(f) A pharmacist is prohibited from delegating the prescribing authority provided under 
1143.2 	this subdivision to any other person. A pharmacist intern registered under section 151.101 
1143.3 	may prepare the prescription, but before the prescription is processed or dispensed, a 
1143.4 	pharmacist authorized to prescribe under this subdivision must review, approve, and sign 
1143.5 	the prescription.
1143.6 	(g) Nothing in this subdivision prohibits a pharmacist from participating in the initiation, 
1143.7 	management, modification, and discontinuation of drug therapy according to a protocol as 
1143.8 	authorized in this section and in section 151.01, subdivision 27.

1143.9 	EFFECTIVE DATE. This section is effective January 1, 2025, except that paragraph 
1143.10 	(b) is effective the day following final enactment.

1143.11 	Sec. 12. Minnesota Statutes 2023 Supplement, section 151.555, subdivision 1, is amended 
1143.12 	to read:
1143.13 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms defined in this 
1143.14 	subdivision have the meanings given.
1143.15 	(b) "Central repository" means a wholesale distributor that meets the requirements under 
1143.16 	subdivision 3 and enters into a contract with the Board of Pharmacy in accordance with this 
1143.17 	section.
1143.18 	(c) "Distribute" means to deliver, other than by administering or dispensing.
1143.19 	(d) "Donor" means:
1143.20 	(1) a health care facility as defined in this subdivision an individual at least 18 years of 
1143.21 	age, provided that the drug or medical supply that is donated was obtained legally and meets 
1143.22 	the requirements of this section for donation; or
1143.23 	(2) a skilled nursing facility licensed under chapter 144A; any entity legally authorized 
1143.24 	to possess medicine with a license or permit in good standing in the state in which it is 
1143.25 	located, without further restrictions, including but not limited to a health care facility, skilled 
1143.26 	nursing facility, assisted living facility, pharmacy, wholesaler, and drug manufacturer.
1143.27 	(3) an assisted living facility licensed under chapter 144G;
1143.28 	(4) a pharmacy licensed under section 151.19, and located either in the state or outside 
1143.29 	the state;
1143.30 	(5) a drug wholesaler licensed under section 151.47;
1143.31 	(6) a drug manufacturer licensed under section 151.252; or
1144.1 	(7) an individual at least 18 years of age, provided that the drug or medical supply that 
1144.2 	is donated was obtained legally and meets the requirements of this section for donation.
1144.3 	(e) "Drug" means any prescription drug that has been approved for medical use in the 
1144.4 	United States, is listed in the United States Pharmacopoeia or National Formulary, and 
1144.5 	meets the criteria established under this section for donation; or any over-the-counter 
1144.6 	medication that meets the criteria established under this section for donation. This definition 
1144.7 	includes cancer drugs and antirejection drugs, but does not include controlled substances, 
1144.8 	as defined in section 152.01, subdivision 4, or a prescription drug that can only be dispensed 
1144.9 	to a patient registered with the drug's manufacturer in accordance with federal Food and 
1144.10 	Drug Administration requirements.
1144.11 	(f) "Health care facility" means:
1144.12 	(1) a physician's office or health care clinic where licensed practitioners provide health 
1144.13 	care to patients;
1144.14 	(2) a hospital licensed under section 144.50;
1144.15 	(3) a pharmacy licensed under section 151.19 and located in Minnesota; or
1144.16 	(4) a nonprofit community clinic, including a federally qualified health center; a rural 
1144.17 	health clinic; public health clinic; or other community clinic that provides health care utilizing 
1144.18 	a sliding fee scale to patients who are low-income, uninsured, or underinsured.
1144.19 	(g) "Local repository" means a health care facility that elects to accept donated drugs 
1144.20 	and medical supplies and meets the requirements of subdivision 4.
1144.21 	(h) "Medical supplies" or "supplies" means any prescription or nonprescription medical 
1144.22 	supplies needed to administer a drug.
1144.23 	(i) "Original, sealed, unopened, tamper-evident packaging" means packaging that is 
1144.24 	sealed, unopened, and tamper-evident, including a manufacturer's original unit dose or 
1144.25 	unit-of-use container, a repackager's original unit dose or unit-of-use container, or unit-dose 
1144.26 	packaging prepared by a licensed pharmacy according to the standards of Minnesota Rules, 
1144.27 	part 6800.3750.
1144.28 	(j) "Practitioner" has the meaning given in section 151.01, subdivision 23, except that 
1144.29 	it does not include a veterinarian.

1145.1 	Sec. 13. Minnesota Statutes 2023 Supplement, section 151.555, subdivision 4, is amended 
1145.2 	to read:
1145.3 		Subd. 4.Local repository requirements. (a) To be eligible for participation in the 
1145.4 	medication repository program, a health care facility must agree to comply with all applicable 
1145.5 	federal and state laws, rules, and regulations pertaining to the medication repository program, 
1145.6 	drug storage, and dispensing. The facility must also agree to maintain in good standing any 
1145.7 	required state license or registration that may apply to the facility.
1145.8 	(b) A local repository may elect to participate in the program by submitting the following 
1145.9 	information to the central repository on a form developed by the board and made available 
1145.10 	on the board's website:
1145.11 	(1) the name, street address, and telephone number of the health care facility and any 
1145.12 	state-issued license or registration number issued to the facility, including the issuing state 
1145.13 	agency;
1145.14 	(2) the name and telephone number of a responsible pharmacist or practitioner who is 
1145.15 	employed by or under contract with the health care facility; and
1145.16 	(3) a statement signed and dated by the responsible pharmacist or practitioner indicating 
1145.17 	that the health care facility meets the eligibility requirements under this section and agrees 
1145.18 	to comply with this section.
1145.19 	(c) Participation in the medication repository program is voluntary. A local repository 
1145.20 	may withdraw from participation in the medication repository program at any time by 
1145.21 	providing written notice to the central repository on a form developed by the board and 
1145.22 	made available on the board's website. The central repository shall provide the board with 
1145.23 	a copy of the withdrawal notice within ten business days from the date of receipt of the 
1145.24 	withdrawal notice.

1145.25 	Sec. 14. Minnesota Statutes 2023 Supplement, section 151.555, subdivision 5, is amended 
1145.26 	to read:
1145.27 		Subd. 5.Individual eligibility and application requirements. (a) To be eligible for 
1145.28 	the medication repository program At the time of or before receiving donated drugs or 
1145.29 	supplies as a new eligible patient, an individual must submit to a local repository an electronic 
1145.30 	or physical intake application form that is signed by the individual and attests that the 
1145.31 	individual:
1145.32 	(1) is a resident of Minnesota;
1146.1 	(2) is uninsured and is not enrolled in the medical assistance program under chapter 
1146.2 	256B or the MinnesotaCare program under chapter 256L, has no prescription drug coverage, 
1146.3 	or is underinsured;
1146.4 	(3) acknowledges that the drugs or medical supplies to be received through the program 
1146.5 	may have been donated; and
1146.6 	(4) consents to a waiver of the child-resistant packaging requirements of the federal 
1146.7 	Poison Prevention Packaging Act.
1146.8 	(b) Upon determining that an individual is eligible for the program, the local repository 
1146.9 	shall furnish the individual with an identification card. The card shall be valid for one year 
1146.10 	from the date of issuance and may be used at any local repository. A new identification card 
1146.11 	may be issued upon expiration once the individual submits a new application form.
1146.12 	(c) (b) The local repository shall send a copy of the intake application form to the central 
1146.13 	repository by regular mail, facsimile, or secured email within ten days from the date the 
1146.14 	application is approved by the local repository.
1146.15 	(d) (c) The board shall develop and make available on the board's website an application 
1146.16 	form and the format for the identification card.

1146.17 	Sec. 15. Minnesota Statutes 2023 Supplement, section 151.555, subdivision 6, is amended 
1146.18 	to read:
1146.19 		Subd. 6.Standards and procedures for accepting donations of drugs and supplies. (a) 
1146.20 	Notwithstanding any other law or rule, a donor may donate drugs or medical supplies to 
1146.21 	the central repository or a local repository if the drug or supply meets the requirements of 
1146.22 	this section as determined by a pharmacist or practitioner who is employed by or under 
1146.23 	contract with the central repository or a local repository.
1146.24 	(b) A drug is eligible for donation under the medication repository program if the 
1146.25 	following requirements are met:
1146.26 	(1) the donation is accompanied by a medication repository donor form described under 
1146.27 	paragraph (d) that is signed by an individual who is authorized by the donor to attest to the 
1146.28 	donor's knowledge in accordance with paragraph (d);
1146.29 	(2) (1) the drug's expiration date is at least six months after the date the drug was donated. 
1146.30 	If a donated drug bears an expiration date that is less than six months from the donation 
1146.31 	date, the drug may be accepted and distributed if the drug is in high demand and can be 
1146.32 	dispensed for use by a patient before the drug's expiration date;
1147.1 	(3) (2) the drug is in its original, sealed, unopened, tamper-evident packaging that includes 
1147.2 	the expiration date. Single-unit-dose drugs may be accepted if the single-unit-dose packaging 
1147.3 	is unopened;
1147.4 	(4) (3) the drug or the packaging does not have any physical signs of tampering, 
1147.5 	misbranding, deterioration, compromised integrity, or adulteration;
1147.6 	(5) (4) the drug does not require storage temperatures other than normal room temperature 
1147.7 	as specified by the manufacturer or United States Pharmacopoeia, unless the drug is being 
1147.8 	donated directly by its manufacturer, a wholesale drug distributor, or a pharmacy located 
1147.9 	in Minnesota; and
1147.10 	(6) (5) the drug is not a controlled substance.
1147.11 	(c) A medical supply is eligible for donation under the medication repository program 
1147.12 	if the following requirements are met:
1147.13 	(1) the supply has no physical signs of tampering, misbranding, or alteration and there 
1147.14 	is no reason to believe it has been adulterated, tampered with, or misbranded;
1147.15 	(2) the supply is in its original, unopened, sealed packaging; and
1147.16 	(3) the donation is accompanied by a medication repository donor form described under 
1147.17 	paragraph (d) that is signed by an individual who is authorized by the donor to attest to the 
1147.18 	donor's knowledge in accordance with paragraph (d); and
1147.19 	(4) (3) if the supply bears an expiration date, the date is at least six months later than 
1147.20 	the date the supply was donated. If the donated supply bears an expiration date that is less 
1147.21 	than six months from the date the supply was donated, the supply may be accepted and 
1147.22 	distributed if the supply is in high demand and can be dispensed for use by a patient before 
1147.23 	the supply's expiration date.
1147.24 	(d) The board shall develop the medication repository donor form and make it available 
1147.25 	on the board's website. The form must state that to the best of the donor's knowledge the 
1147.26 	donated drug or supply has been properly stored under appropriate temperature and humidity 
1147.27 	conditions and that the drug or supply has never been opened, used, tampered with, 
1147.28 	adulterated, or misbranded. Prior to the first donation from a new donor, a central repository 
1147.29 	or local repository shall verify and record the following information on the donor form:
1147.30 	(1) the donor's name, address, phone number, and license number, if applicable;
1147.31 	(2) that the donor will only make donations in accordance with the program;
1148.1 	(3) to the best of the donor's knowledge, only drugs or supplies that have been properly 
1148.2 	stored under appropriate temperature and humidity conditions will be donated; and
1148.3 	(4) to the best of the donor's knowledge, only drugs or supplies that have never been 
1148.4 	opened, used, tampered with, adulterated, or misbranded will be donated.
1148.5 	(e) Notwithstanding any other law or rule, a central repository or a local repository may 
1148.6 	receive donated drugs from donors. Donated drugs and supplies may be shipped or delivered 
1148.7 	to the premises of the central repository or a local repository, and shall be inspected by a 
1148.8 	pharmacist or an authorized practitioner who is employed by or under contract with the 
1148.9 	repository and who has been designated by the repository to accept donations prior to 
1148.10 	dispensing. A drop box must not be used to deliver or accept donations.
1148.11 	(f) The central repository and local repository shall maintain a written or electronic 
1148.12 	inventory of all drugs and supplies donated to the repository upon acceptance of each drug 
1148.13 	or supply. For each drug, the inventory must include the drug's name, strength, quantity, 
1148.14 	manufacturer, expiration date, and the date the drug was donated. For each medical supply, 
1148.15 	the inventory must include a description of the supply, its manufacturer, the date the supply 
1148.16 	was donated, and, if applicable, the supply's brand name and expiration date. The board 
1148.17 	may waive the requirement under this paragraph if an entity is under common ownership 
1148.18 	or control with a central repository or local repository and either the entity or the repository 
1148.19 	maintains an inventory containing all the information required under this paragraph.

1148.20 	Sec. 16. Minnesota Statutes 2023 Supplement, section 151.555, subdivision 7, is amended 
1148.21 	to read:
1148.22 		Subd. 7.Standards and procedures for inspecting and storing donated drugs and 
1148.23 	supplies. (a) A pharmacist or authorized practitioner who is employed by or under contract 
1148.24 	with the central repository or a local repository shall inspect all donated drugs and supplies 
1148.25 	before the drug or supply is dispensed to determine, to the extent reasonably possible in the 
1148.26 	professional judgment of the pharmacist or practitioner, that the drug or supply is not 
1148.27 	adulterated or misbranded, has not been tampered with, is safe and suitable for dispensing, 
1148.28 	has not been subject to a recall, and meets the requirements for donation. The pharmacist 
1148.29 	or practitioner who inspects the drugs or supplies shall sign an inspection record stating that 
1148.30 	the requirements for donation have been met. If a local repository receives drugs and supplies 
1148.31 	from the central repository, the local repository does not need to reinspect the drugs and 
1148.32 	supplies.
1149.1 	(b) The central repository and local repositories shall store donated drugs and supplies 
1149.2 	in a secure storage area under environmental conditions appropriate for the drug or supply 
1149.3 	being stored. Donated drugs and supplies may not be stored with nondonated inventory.
1149.4 	(c) The central repository and local repositories shall dispose of all drugs and medical 
1149.5 	supplies that are not suitable for donation in compliance with applicable federal and state 
1149.6 	statutes, regulations, and rules concerning hazardous waste.
1149.7 	(d) In the event that controlled substances or drugs that can only be dispensed to a patient 
1149.8 	registered with the drug's manufacturer are shipped or delivered to a central or local repository 
1149.9 	for donation, the shipment delivery must be documented by the repository and returned 
1149.10 	immediately to the donor or the donor's representative that provided the drugs.
1149.11 	(e) Each repository must develop drug and medical supply recall policies and procedures. 
1149.12 	If a repository receives a recall notification, the repository shall destroy all of the drug or 
1149.13 	medical supply in its inventory that is the subject of the recall and complete a record of 
1149.14 	destruction form in accordance with paragraph (f). If a drug or medical supply that is the 
1149.15 	subject of a Class I or Class II recall has been dispensed, the repository shall immediately 
1149.16 	notify the recipient of the recalled drug or medical supply. A drug that potentially is subject 
1149.17 	to a recall need not be destroyed if its packaging bears a lot number and that lot of the drug 
1149.18 	is not subject to the recall. If no lot number is on the drug's packaging, it must be destroyed.
1149.19 	(f) A record of destruction of donated drugs and supplies that are not dispensed under 
1149.20 	subdivision 8, are subject to a recall under paragraph (e), or are not suitable for donation 
1149.21 	shall be maintained by the repository for at least two years. For each drug or supply destroyed, 
1149.22 	the record shall include the following information:
1149.23 	(1) the date of destruction;
1149.24 	(2) the name, strength, and quantity of the drug destroyed; and
1149.25 	(3) the name of the person or firm that destroyed the drug.
1149.26 	No other record of destruction is required.

1149.27 	Sec. 17. Minnesota Statutes 2023 Supplement, section 151.555, subdivision 8, is amended 
1149.28 	to read:
1149.29 		Subd. 8.Dispensing requirements. (a) Donated prescription drugs and supplies may 
1149.30 	be dispensed if the drugs or supplies are prescribed by a practitioner for use by an eligible 
1149.31 	individual and are dispensed by a pharmacist or practitioner. A repository shall dispense 
1149.32 	drugs and supplies to eligible individuals in the following priority order: (1) individuals 
1150.1 	who are uninsured; (2) individuals with no prescription drug coverage; and (3) individuals 
1150.2 	who are underinsured. A repository shall dispense donated drugs in compliance with 
1150.3 	applicable federal and state laws and regulations for dispensing drugs, including all 
1150.4 	requirements relating to packaging, labeling, record keeping, drug utilization review, and 
1150.5 	patient counseling.
1150.6 	(b) Before dispensing or administering a drug or supply, the pharmacist or practitioner 
1150.7 	shall visually inspect the drug or supply for adulteration, misbranding, tampering, and date 
1150.8 	of expiration. Drugs or supplies that have expired or appear upon visual inspection to be 
1150.9 	adulterated, misbranded, or tampered with in any way must not be dispensed or administered.
1150.10 	(c) Before a the first drug or supply is dispensed or administered to an individual, the 
1150.11 	individual must sign a an electronic or physical drug repository recipient form acknowledging 
1150.12 	that the individual understands the information stated on the form. The board shall develop 
1150.13 	the form and make it available on the board's website. The form must include the following 
1150.14 	information:
1150.15 	(1) that the drug or supply being dispensed or administered has been donated and may 
1150.16 	have been previously dispensed;
1150.17 	(2) that a visual inspection has been conducted by the pharmacist or practitioner to ensure 
1150.18 	that the drug or supply has not expired, has not been adulterated or misbranded, and is in 
1150.19 	its original, unopened packaging; and
1150.20 	(3) that the dispensing pharmacist, the dispensing or administering practitioner, the 
1150.21 	central repository or local repository, the Board of Pharmacy, and any other participant of 
1150.22 	the medication repository program cannot guarantee the safety of the drug or medical supply 
1150.23 	being dispensed or administered and that the pharmacist or practitioner has determined that 
1150.24 	the drug or supply is safe to dispense or administer based on the accuracy of the donor's 
1150.25 	form submitted with the donated drug or medical supply and the visual inspection required 
1150.26 	to be performed by the pharmacist or practitioner before dispensing or administering.

1150.27 	Sec. 18. Minnesota Statutes 2023 Supplement, section 151.555, subdivision 9, is amended 
1150.28 	to read:
1150.29 		Subd. 9.Handling fees. (a) The central or local repository may charge the individual 
1150.30 	receiving a drug or supply a handling fee of no more than 250 percent of the medical 
1150.31 	assistance program dispensing fee for each drug or medical supply dispensed or administered 
1150.32 	by that repository.
1151.1 	(b) A repository that dispenses or administers a drug or medical supply through the 
1151.2 	medication repository program shall not receive reimbursement under the medical assistance 
1151.3 	program or the MinnesotaCare program for that dispensed or administered drug or supply.
1151.4 	(c) A supply or handling fee must not be charged to an individual enrolled in the medical 
1151.5 	assistance or MinnesotaCare program.

1151.6 	Sec. 19. Minnesota Statutes 2023 Supplement, section 151.555, subdivision 11, is amended 
1151.7 	to read:
1151.8 		Subd. 11.Forms and record-keeping requirements. (a) The following forms developed 
1151.9 	for the administration of this program shall be utilized by the participants of the program 
1151.10 	and shall be available on the board's website:
1151.11 	(1) intake application form described under subdivision 5;
1151.12 	(2) local repository participation form described under subdivision 4;
1151.13 	(3) local repository withdrawal form described under subdivision 4;
1151.14 	(4) medication repository donor form described under subdivision 6;
1151.15 	(5) record of destruction form described under subdivision 7; and
1151.16 	(6) medication repository recipient form described under subdivision 8.
1151.17 	Participants may use substantively similar electronic or physical forms.
1151.18 	(b) All records, including drug inventory, inspection, and disposal of donated drugs and 
1151.19 	medical supplies, must be maintained by a repository for a minimum of two years. Records 
1151.20 	required as part of this program must be maintained pursuant to all applicable practice acts.
1151.21 	(c) Data collected by the medication repository program from all local repositories shall 
1151.22 	be submitted quarterly or upon request to the central repository. Data collected may consist 
1151.23 	of the information, records, and forms required to be collected under this section.
1151.24 	(d) The central repository shall submit reports to the board as required by the contract 
1151.25 	or upon request of the board.

1151.26 	Sec. 20. Minnesota Statutes 2023 Supplement, section 151.555, subdivision 12, is amended 
1151.27 	to read:
1151.28 		Subd. 12.Liability. (a) The manufacturer of a drug or supply is not subject to criminal 
1151.29 	or civil liability for injury, death, or loss to a person or to property for causes of action 
1151.30 	described in clauses (1) and (2). A manufacturer is not liable for:
1152.1 	(1) the intentional or unintentional alteration of the drug or supply by a party not under 
1152.2 	the control of the manufacturer; or
1152.3 	(2) the failure of a party not under the control of the manufacturer to transfer or 
1152.4 	communicate product or consumer information or the expiration date of the donated drug 
1152.5 	or supply.
1152.6 	(b) A health care facility participating in the program, a pharmacist dispensing a drug 
1152.7 	or supply pursuant to the program, a practitioner dispensing or administering a drug or 
1152.8 	supply pursuant to the program, or a donor of a drug or medical supply, or a person or entity 
1152.9 	that facilitates any of the above is immune from civil liability for an act or omission that 
1152.10 	causes injury to or the death of an individual to whom the drug or supply is dispensed and 
1152.11 	no disciplinary action by a health-related licensing board shall be taken against a pharmacist 
1152.12 	or practitioner person or entity so long as the drug or supply is donated, accepted, distributed, 
1152.13 	and dispensed according to the requirements of this section. This immunity does not apply 
1152.14 	if the act or omission involves reckless, wanton, or intentional misconduct, or malpractice 
1152.15 	unrelated to the quality of the drug or medical supply.

1152.16 	Sec. 21. Minnesota Statutes 2022, section 256B.0625, subdivision 10, is amended to read:
1152.17 		Subd. 10.Laboratory, x-ray, and opioid testing services. (a) Medical assistance covers 
1152.18 	laboratory and x-ray services.
1152.19 	(b) Medical assistance covers screening and urinalysis tests for opioids without lifetime 
1152.20 	or annual limits.
1152.21 	(c) Medical assistance covers laboratory tests ordered and performed by a licensed 
1152.22 	pharmacist, according to the requirements of section 151.01, subdivision 27, clause (3), at 
1152.23 	no less than the rate for which the same services are covered when provided by any other 
1152.24 	licensed practitioner.

1152.25 	EFFECTIVE DATE. This section is effective January 1, 2025, or upon federal approval, 
1152.26 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
1152.27 	when federal approval is obtained.

1152.28 	Sec. 22. Minnesota Statutes 2023 Supplement, section 256B.0625, subdivision 13f, is 
1152.29 	amended to read:
1152.30 		Subd. 13f.Prior authorization. (a) The Formulary Committee shall review and 
1152.31 	recommend drugs which require prior authorization. The Formulary Committee shall 
1152.32 	establish general criteria to be used for the prior authorization of brand-name drugs for 
1153.1 	which generically equivalent drugs are available, but the committee is not required to review 
1153.2 	each brand-name drug for which a generically equivalent drug is available.
1153.3 	(b) Prior authorization may be required by the commissioner before certain formulary 
1153.4 	drugs are eligible for payment. The Formulary Committee may recommend drugs for prior 
1153.5 	authorization directly to the commissioner. The commissioner may also request that the 
1153.6 	Formulary Committee review a drug for prior authorization. Before the commissioner may 
1153.7 	require prior authorization for a drug:
1153.8 	(1) the commissioner must provide information to the Formulary Committee on the 
1153.9 	impact that placing the drug on prior authorization may have on the quality of patient care 
1153.10 	and on program costs, information regarding whether the drug is subject to clinical abuse 
1153.11 	or misuse, and relevant data from the state Medicaid program if such data is available;
1153.12 	(2) the Formulary Committee must review the drug, taking into account medical and 
1153.13 	clinical data and the information provided by the commissioner; and
1153.14 	(3) the Formulary Committee must hold a public forum and receive public comment for 
1153.15 	an additional 15 days.
1153.16 	The commissioner must provide a 15-day notice period before implementing the prior 
1153.17 	authorization.
1153.18 	(c) Except as provided in subdivision 13j, prior authorization shall not be required or 
1153.19 	utilized for any atypical antipsychotic drug prescribed for the treatment of mental illness 
1153.20 	if:
1153.21 	(1) there is no generically equivalent drug available; and
1153.22 	(2) the drug was initially prescribed for the recipient prior to July 1, 2003; or
1153.23 	(3) the drug is part of the recipient's current course of treatment.
1153.24 	This paragraph applies to any multistate preferred drug list or supplemental drug rebate 
1153.25 	program established or administered by the commissioner. Prior authorization shall 
1153.26 	automatically be granted for 60 days for brand name drugs prescribed for treatment of mental 
1153.27 	illness within 60 days of when a generically equivalent drug becomes available, provided 
1153.28 	that the brand name drug was part of the recipient's course of treatment at the time the 
1153.29 	generically equivalent drug became available.
1153.30 	(d) Prior authorization must not be required for liquid methadone if only one version of 
1153.31 	liquid methadone is available. If more than one version of liquid methadone is available, 
1154.1 	the commissioner shall ensure that at least one version of liquid methadone is available 
1154.2 	without prior authorization.
1154.3 	(e) Prior authorization may be required for an oral liquid form of a drug, except as 
1154.4 	described in paragraph (d). A prior authorization request under this paragraph must be 
1154.5 	automatically approved within 24 hours if the drug is being prescribed for a Food and Drug 
1154.6 	Administration-approved condition for a patient who utilizes an enteral tube for feedings 
1154.7 	or medication administration, even if the patient has current or prior claims for pills for that 
1154.8 	condition. If more than one version of the oral liquid form of a drug is available, the 
1154.9 	commissioner may select the version that is able to be approved for a Food and Drug 
1154.10 	Administration-approved condition for a patient who utilizes an enteral tube for feedings 
1154.11 	or medication administration. This paragraph applies to any multistate preferred drug list 
1154.12 	or supplemental drug rebate program established or administered by the commissioner. The 
1154.13 	commissioner shall design and implement a streamlined prior authorization form for patients 
1154.14 	who utilize an enteral tube for feedings or medication administration and are prescribed an 
1154.15 	oral liquid form of a drug. The commissioner may require prior authorization for brand 
1154.16 	name drugs whenever a generically equivalent product is available, even if the prescriber 
1154.17 	specifically indicates "dispense as written-brand necessary" on the prescription as required 
1154.18 	by section 151.21, subdivision 2.
1154.19 	(f) Notwithstanding this subdivision, the commissioner may automatically require prior 
1154.20 	authorization, for a period not to exceed 180 days, for any drug that is approved by the 
1154.21 	United States Food and Drug Administration on or after July 1, 2005. The 180-day period 
1154.22 	begins no later than the first day that a drug is available for shipment to pharmacies within 
1154.23 	the state. The Formulary Committee shall recommend to the commissioner general criteria 
1154.24 	to be used for the prior authorization of the drugs, but the committee is not required to 
1154.25 	review each individual drug. In order to continue prior authorizations for a drug after the 
1154.26 	180-day period has expired, the commissioner must follow the provisions of this subdivision.
1154.27 	(g) Prior authorization under this subdivision shall comply with section 62Q.184.
1154.28 	(h) Any step therapy protocol requirements established by the commissioner must comply 
1154.29 	with section 62Q.1841.
1154.30 	(i) Notwithstanding any law to the contrary, prior authorization or step therapy shall not 
1154.31 	be required or utilized for any class of drugs that is approved by the United States Food and 
1154.32 	Drug Administration for the treatment or prevention of HIV and AIDS.

1154.33 	EFFECTIVE DATE. This section is effective January 1, 2026.

1155.1 	Sec. 23. Minnesota Statutes 2022, section 256B.0625, subdivision 39, is amended to read:
1155.2 		Subd. 39.Childhood immunizations. (a) Providers who administer pediatric vaccines 
1155.3 	within the scope of their licensure, and who are enrolled as a medical assistance provider, 
1155.4 	must enroll in the pediatric vaccine administration program established by section 13631 
1155.5 	of the Omnibus Budget Reconciliation Act of 1993. Medical assistance shall pay for 
1155.6 	administration of the vaccine to children eligible for medical assistance. Medical assistance 
1155.7 	does not pay for vaccines that are available at no cost from the pediatric vaccine 
1155.8 	administration program unless the vaccines qualify for 100 percent federal funding or are 
1155.9 	mandated by the Centers for Medicare and Medicaid Services to be covered outside of the 
1155.10 	Vaccines for Children program.
1155.11 	(b) Medical assistance covers vaccines initiated, ordered, or administered by a licensed 
1155.12 	pharmacist, according to the requirements of section 151.01, subdivision 27, clause (6), at 
1155.13 	no less than the rate for which the same services are covered when provided by any other 
1155.14 	licensed practitioner.

1155.15 	EFFECTIVE DATE. The amendment to paragraph (a) is effective July 1, 2024. 
1155.16 	Paragraph (b) is effective January 1, 2025, or upon federal approval, whichever is later. The 
1155.17 	commissioner of human services shall notify the revisor of statutes when federal approval 
1155.18 	is obtained.

1155.19 	Sec. 24. DIRECTION TO THE COMMISSIONER; ASSESSMENT OF LICENSED 
1155.20 	OUTPATIENT PHARMACIES; REPORT.
 1155.21 	The commissioner of health, in consultation with the Board of Pharmacy, must conduct 
1155.22 	an assessment of licensed outpatient pharmacies and vendors of audible container labels 
1155.23 	and prescription readers to determine: (1) the approximate number of such pharmacies 
1155.24 	currently providing accessible labels to individuals who cannot access large print or Braille 
1155.25 	labels; and (2) the approximate cost to such pharmacies to provide accessible labels to 
1155.26 	individuals who cannot access large print or Braille labels. By January 15, 2025, the 
1155.27 	commissioner must submit a report to the chairs and ranking minority members of the 
1155.28 	legislative committees with jurisdiction over health and human services finance and policy. 
1155.29 	The report must include the assessment results and recommendations for providing accessible 
1155.30 	labels to those who cannot access large print or Braille labels.

1155.31 	EFFECTIVE DATE. This section is effective July 1, 2024.

1156.1 	Sec. 25. RULEMAKING; BOARD OF PHARMACY.
 1156.2 	The Board of Pharmacy must amend Minnesota Rules, part 6800.3400, to permit and 
1156.3 	promote the inclusion of the following on a prescription label:
1156.4 	(1) the complete and unabbreviated generic name of the drug; and
1156.5 	(2) instructions written in plain language explaining the patient-specific indications for 
1156.6 	the drug if the patient-specific indications are indicated on the prescription.
1156.7 	The Board of Pharmacy must comply with Minnesota Statutes, section 14.389, in adopting 
1156.8 	the amendment to the rule.

1156.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

1156.10 	ARTICLE 61
1156.11 	BEHAVIORAL HEALTH

1156.12 	Section 1. Minnesota Statutes 2022, section 245.462, subdivision 6, is amended to read:
1156.13 		Subd. 6.Community support services program. "Community support services program" 
1156.14 	means services, other than inpatient or residential treatment services, provided or coordinated 
1156.15 	by an identified program and staff under the treatment supervision of a mental health 
1156.16 	professional designed to help adults with serious and persistent mental illness to function 
1156.17 	and remain in the community. A community support services program includes:
1156.18 	(1) client outreach,
1156.19 	(2) medication monitoring,
1156.20 	(3) assistance in independent living skills,
1156.21 	(4) development of employability and work-related opportunities,
1156.22 	(5) crisis assistance,
1156.23 	(6) psychosocial rehabilitation,
1156.24 	(7) help in applying for government benefits, and
1156.25 	(8) housing support services.
1156.26 	The community support services program must be coordinated with the case management 
1156.27 	services specified in section 245.4711. A program that meets the accreditation standards 
1156.28 	for Clubhouse International model programs meets the requirements of this subdivision.

1157.1 	Sec. 2. Minnesota Statutes 2022, section 245.4663, subdivision 2, is amended to read:
1157.2 		Subd. 2.Eligible providers. In order to be eligible for a grant under this section, a mental 
1157.3 	health provider must:
1157.4 	(1) provide at least 25 percent of the provider's yearly patient encounters to state public 
1157.5 	program enrollees or patients receiving sliding fee schedule discounts through a formal 
1157.6 	sliding fee schedule meeting the standards established by the United States Department of 
1157.7 	Health and Human Services under Code of Federal Regulations, title 42, section 51c.303; 
1157.8 	or
1157.9 	(2) primarily serve underrepresented communities as defined in section 148E.010, 
1157.10 	subdivision 20.; or
1157.11 	(3) provide services to people in a city or township that is not within the seven-county 
1157.12 	metropolitan area as defined in section 473.121, subdivision 2, and is not the city of Duluth, 
1157.13 	Mankato, Moorhead, Rochester, or St. Cloud.

1157.14 	Sec. 3. Minnesota Statutes 2023 Supplement, section 245.4889, subdivision 1, is amended 
1157.15 	to read:
1157.16 		Subdivision 1.Establishment and authority. (a) The commissioner is authorized to 
1157.17 	make grants from available appropriations to assist:
1157.18 	(1) counties;
1157.19 	(2) Indian tribes;
1157.20 	(3) children's collaboratives under section 124D.23 or 245.493; or
1157.21 	(4) mental health service providers.
1157.22 	(b) The following services are eligible for grants under this section:
1157.23 	(1) services to children with emotional disturbances as defined in section 245.4871, 
1157.24 	subdivision 15, and their families;
1157.25 	(2) transition services under section 245.4875, subdivision 8, for young adults under 
1157.26 	age 21 and their families;
1157.27 	(3) respite care services for children with emotional disturbances or severe emotional 
1157.28 	disturbances who are at risk of out-of-home placement or residential treatment or 
1157.29 	hospitalization, who are already in out-of-home placement in family foster settings as defined 
1157.30 	in chapter 245A and at risk of change in out-of-home placement or placement in a residential 
1157.31 	facility or other higher level of care, who have utilized crisis services or emergency room 
1158.1 	services, or who have experienced a loss of in-home staffing support. Allowable activities 
1158.2 	and expenses for respite care services are defined under subdivision 4. A child is not required 
1158.3 	to have case management services to receive respite care services. Counties must work to 
1158.4 	provide access to regularly scheduled respite care;
1158.5 	(4) children's mental health crisis services;
1158.6 	(5) child-, youth-, and family-specific mobile response and stabilization services models;
1158.7 	(6) mental health services for people from cultural and ethnic minorities, including 
1158.8 	supervision of clinical trainees who are Black, indigenous, or people of color;
1158.9 	(7) children's mental health screening and follow-up diagnostic assessment and treatment;
1158.10 	(8) services to promote and develop the capacity of providers to use evidence-based 
1158.11 	practices in providing children's mental health services;
1158.12 	(9) school-linked mental health services under section 245.4901;
1158.13 	(10) building evidence-based mental health intervention capacity for children birth to 
1158.14 	age five;
1158.15 	(11) suicide prevention and counseling services that use text messaging statewide;
1158.16 	(12) mental health first aid training;
1158.17 	(13) training for parents, collaborative partners, and mental health providers on the 
1158.18 	impact of adverse childhood experiences and trauma and development of an interactive 
1158.19 	website to share information and strategies to promote resilience and prevent trauma;
1158.20 	(14) transition age services to develop or expand mental health treatment and supports 
1158.21 	for adolescents and young adults 26 years of age or younger;
1158.22 	(15) early childhood mental health consultation;
1158.23 	(16) evidence-based interventions for youth at risk of developing or experiencing a first 
1158.24 	episode of psychosis, and a public awareness campaign on the signs and symptoms of 
1158.25 	psychosis;
1158.26 	(17) psychiatric consultation for primary care practitioners; and
1158.27 	(18) providers to begin operations and meet program requirements when establishing a 
1158.28 	new children's mental health program. These may be start-up grants.
1158.29 	(c) Services under paragraph (b) must be designed to help each child to function and 
1158.30 	remain with the child's family in the community and delivered consistent with the child's 
1159.1 	treatment plan. Transition services to eligible young adults under this paragraph must be 
1159.2 	designed to foster independent living in the community.
1159.3 	(d) As a condition of receiving grant funds, a grantee shall obtain all available third-party 
1159.4 	reimbursement sources, if applicable.
1159.5 	(e) The commissioner may establish and design a pilot program to expand the mobile 
1159.6 	response and stabilization services model for children, youth, and families. The commissioner 
1159.7 	may use grant funding to consult with a qualified expert entity to assist in the formulation 
1159.8 	of measurable outcomes and explore and position the state to submit a Medicaid state plan 
1159.9 	amendment to scale the model statewide.

1159.10 	Sec. 4. Minnesota Statutes 2023 Supplement, section 245.735, subdivision 3, is amended 
1159.11 	to read:
1159.12 		Subd. 3.Certified community behavioral health clinics. (a) The commissioner shall 
1159.13 	establish state certification and recertification processes for certified community behavioral 
1159.14 	health clinics (CCBHCs) that satisfy all federal requirements necessary for CCBHCs certified 
1159.15 	under this section to be eligible for reimbursement under medical assistance, without service 
1159.16 	area limits based on geographic area or region. The commissioner shall consult with CCBHC 
1159.17 	stakeholders before establishing and implementing changes in the certification or 
1159.18 	recertification process and requirements. Any changes to the certification or recertification 
1159.19 	process or requirements must be consistent with the most recently issued Certified 
1159.20 	Community Behavioral Health Clinic Certification Criteria published by the Substance 
1159.21 	Abuse and Mental Health Services Administration. The commissioner must allow a transition 
1159.22 	period for CCBHCs to meet the revised criteria prior to July 1, 2024 on or before January 
1159.23 	1, 2025. The commissioner is authorized to amend the state's Medicaid state plan or the 
1159.24 	terms of the demonstration to comply with federal requirements.
1159.25 	(b) As part of the state CCBHC certification and recertification processes, the 
1159.26 	commissioner shall provide to entities applying for certification or requesting recertification 
1159.27 	the standard requirements of the community needs assessment and the staffing plan that are 
1159.28 	consistent with the most recently issued Certified Community Behavioral Health Clinic 
1159.29 	Certification Criteria published by the Substance Abuse and Mental Health Services 
1159.30 	Administration.
1159.31 	(c) The commissioner shall schedule a certification review that includes a site visit within 
1159.32 	90 calendar days of receipt of an application for certification or recertification.
1159.33 	(d) Entities that choose to be CCBHCs must:
1160.1 	(1) complete a community needs assessment and complete a staffing plan that is 
1160.2 	responsive to the needs identified in the community needs assessment and update both the 
1160.3 	community needs assessment and the staffing plan no less frequently than every 36 months;
1160.4 	(2) comply with state licensing requirements and other requirements issued by the 
1160.5 	commissioner;
1160.6 	(3) employ or contract with a medical director. A medical director must be a physician 
1160.7 	licensed under chapter 147 and either certified by the American Board of Psychiatry and 
1160.8 	Neurology, certified by the American Osteopathic Board of Neurology and Psychiatry, or 
1160.9 	eligible for board certification in psychiatry. A registered nurse who is licensed under 
1160.10 	sections 148.171 to 148.285 and is certified as a nurse practitioner in adult or family 
1160.11 	psychiatric and mental health nursing by a national nurse certification organization may 
1160.12 	serve as the medical director when a CCBHC is unable to employ or contract a qualified 
1160.13 	physician;
1160.14 	(4) employ or contract for clinic staff who have backgrounds in diverse disciplines, 
1160.15 	including licensed mental health professionals and licensed alcohol and drug counselors, 
1160.16 	and staff who are culturally and linguistically trained to meet the needs of the population 
1160.17 	the clinic serves;
1160.18 	(5) ensure that clinic services are available and accessible to individuals and families of 
1160.19 	all ages and genders with access on evenings and weekends and that crisis management 
1160.20 	services are available 24 hours per day;
1160.21 	(6) establish fees for clinic services for individuals who are not enrolled in medical 
1160.22 	assistance using a sliding fee scale that ensures that services to patients are not denied or 
1160.23 	limited due to an individual's inability to pay for services;
1160.24 	(7) comply with quality assurance reporting requirements and other reporting 
1160.25 	requirements included in the most recently issued Certified Community Behavioral Health 
1160.26 	Clinic Certification Criteria published by the Substance Abuse and Mental Health Services 
1160.27 	Administration;
1160.28 	(8) provide crisis mental health and substance use services, withdrawal management 
1160.29 	services, emergency crisis intervention services, and stabilization services through existing 
1160.30 	mobile crisis services; screening, assessment, and diagnosis services, including risk 
1160.31 	assessments and level of care determinations; person- and family-centered treatment planning; 
1160.32 	outpatient mental health and substance use services; targeted case management; psychiatric 
1160.33 	rehabilitation services; peer support and counselor services and family support services; 
1160.34 	and intensive community-based mental health services, including mental health services 
1161.1 	for members of the armed forces and veterans. CCBHCs must directly provide the majority 
1161.2 	of these services to enrollees, but may coordinate some services with another entity through 
1161.3 	a collaboration or agreement, pursuant to subdivision 3a;
1161.4 	(9) provide coordination of care across settings and providers to ensure seamless 
1161.5 	transitions for individuals being served across the full spectrum of health services, including 
1161.6 	acute, chronic, and behavioral needs;
1161.7 	(10) be certified as a mental health clinic under section 245I.20;
1161.8 	(11) comply with standards established by the commissioner relating to CCBHC 
1161.9 	screenings, assessments, and evaluations that are consistent with this section;
1161.10 	(12) be licensed to provide substance use disorder treatment under chapter 245G;
1161.11 	(13) be certified to provide children's therapeutic services and supports under section 
1161.12 	256B.0943;
1161.13 	(14) be certified to provide adult rehabilitative mental health services under section 
1161.14 	256B.0623;
1161.15 	(15) be enrolled to provide mental health crisis response services under section 
1161.16 	256B.0624;
1161.17 	(16) be enrolled to provide mental health targeted case management under section 
1161.18 	256B.0625, subdivision 20;
1161.19 	(17) provide services that comply with the evidence-based practices described in 
1161.20 	subdivision 3d;
1161.21 	(18) provide peer services as defined in sections 256B.0615, 256B.0616, and 245G.07, 
1161.22 	subdivision 2, clause (8), as applicable when peer services are provided; and
1161.23 	(19) inform all clients upon initiation of care of the full array of services available under 
1161.24 	the CCBHC model.

1161.25 	EFFECTIVE DATE. This section is effective upon federal approval. The commissioner 
1161.26 	of human services shall notify the revisor of statutes when federal approval is obtained.

1161.27 	Sec. 5. Minnesota Statutes 2022, section 245I.02, subdivision 17, is amended to read:
1161.28 		Subd. 17.Functional assessment. "Functional assessment" means the assessment of a 
1161.29 	client's current level of functioning relative to functioning that is appropriate for someone 
1161.30 	the client's age. For a client five years of age or younger, a functional assessment is the 
1161.31 	Early Childhood Service Intensity Instrument (ESCII). For a client six to 17 years of age, 
1162.1 	a functional assessment is the Child and Adolescent Service Intensity Instrument (CASII). 
1162.2 	For a client 18 years of age or older, a functional assessment is the functional assessment 
1162.3 	described in section 245I.10, subdivision 9.

1162.4 	Sec. 6. Minnesota Statutes 2022, section 245I.02, subdivision 19, is amended to read:
1162.5 		Subd. 19.Level of care assessment. "Level of care assessment" means the level of care 
1162.6 	decision support tool appropriate to the client's age. For a client five years of age or younger, 
1162.7 	a level of care assessment is the Early Childhood Service Intensity Instrument (ESCII). For 
1162.8 	a client six to 17 years of age, a level of care assessment is the Child and Adolescent Service 
1162.9 	Intensity Instrument (CASII). For a client 18 years of age or older, a level of care assessment 
1162.10 	is the Level of Care Utilization System for Psychiatric and Addiction Services (LOCUS) 
1162.11 	or another tool authorized by the commissioner.

1162.12 	Sec. 7. Minnesota Statutes 2022, section 245I.04, subdivision 6, is amended to read:
1162.13 		Subd. 6.Clinical trainee qualifications. (a) A clinical trainee is a staff person who: (1) 
1162.14 	is enrolled in an accredited graduate program of study to prepare the staff person for 
1162.15 	independent licensure as a mental health professional and who is participating in a practicum 
1162.16 	or internship with the license holder through the individual's graduate program; or (2) has 
1162.17 	completed an accredited graduate program of study to prepare the staff person for independent 
1162.18 	licensure as a mental health professional and who is in compliance with the requirements 
1162.19 	of the applicable health-related licensing board, including requirements for supervised 
1162.20 	practice.; or (3) has completed an accredited graduate program of study to prepare the staff 
1162.21 	person for independent licensure as a mental health professional, has completed a practicum 
1162.22 	or internship and has not yet taken or received the results from the required test or is waiting 
1162.23 	for the final licensure decision.
1162.24 	(b) A clinical trainee is responsible for notifying and applying to a health-related licensing 
1162.25 	board to ensure that the trainee meets the requirements of the health-related licensing board. 
1162.26 	As permitted by a health-related licensing board, treatment supervision under this chapter 
1162.27 	may be integrated into a plan to meet the supervisory requirements of the health-related 
1162.28 	licensing board but does not supersede those requirements.

1162.29 	Sec. 8. Minnesota Statutes 2022, section 245I.10, subdivision 9, is amended to read:
1162.30 		Subd. 9.Functional assessment; required elements. (a) When a license holder is 
1162.31 	completing a functional assessment for an adult client, the license holder must:
1163.1 	(1) complete a functional assessment of the client after completing the client's diagnostic 
1163.2 	assessment;
1163.3 	(2) use a collaborative process that allows the client and the client's family and other 
1163.4 	natural supports, the client's referral sources, and the client's providers to provide information 
1163.5 	about how the client's symptoms of mental illness impact the client's functioning;
1163.6 	(3) if applicable, document the reasons that the license holder did not contact the client's 
1163.7 	family and other natural supports;
1163.8 	(4) assess and document how the client's symptoms of mental illness impact the client's 
1163.9 	functioning in the following areas:
1163.10 	(i) the client's mental health symptoms;
1163.11 	(ii) the client's mental health service needs;
1163.12 	(iii) the client's substance use;
1163.13 	(iv) the client's vocational and educational functioning;
1163.14 	(v) the client's social functioning, including the use of leisure time;
1163.15 	(vi) the client's interpersonal functioning, including relationships with the client's family 
1163.16 	and other natural supports;
1163.17 	(vii) the client's ability to provide self-care and live independently;
1163.18 	(viii) the client's medical and dental health;
1163.19 	(ix) the client's financial assistance needs; and
1163.20 	(x) the client's housing and transportation needs;
1163.21 	(5) include a narrative summarizing the client's strengths, resources, and all areas of 
1163.22 	functional impairment;
1163.23 	(6) (5) complete the client's functional assessment before the client's initial individual 
1163.24 	treatment plan unless a service specifies otherwise; and
1163.25 	(7) (6) update the client's functional assessment with the client's current functioning 
1163.26 	whenever there is a significant change in the client's functioning or at least every 180 365
1163.27 	days, unless a service specifies otherwise.
1163.28 	(b) A license holder may use any available, validated measurement tool, including but 
1163.29 	not limited to the Daily Living Activities-20, when completing the required elements of a 
1163.30 	functional assessment under this subdivision.

1164.1 	Sec. 9. Minnesota Statutes 2022, section 245I.11, subdivision 1, is amended to read:
1164.2 		Subdivision 1.Generally. (a) If a license holder is licensed as a residential program, 
1164.3 	stores or administers client medications, or observes clients self-administer medications, 
1164.4 	the license holder must ensure that a staff person who is a registered nurse or licensed 
1164.5 	prescriber is responsible for overseeing storage and administration of client medications 
1164.6 	and observing as a client self-administers medications, including training according to 
1164.7 	section 245I.05, subdivision 6, and documenting the occurrence according to section 245I.08, 
1164.8 	subdivision 5.
1164.9 	(b) For purposes of this section, "observed self-administration" means the preparation 
1164.10 	and administration of a medication by a client to themselves under the direct supervision 
1164.11 	of a registered nurse or a staff member to whom a registered nurse delegates supervision 
1164.12 	duty. Observed self-administration does not include a client's use of a medication that they 
1164.13 	keep in their own possession while participating in a program.

1164.14 	Sec. 10. Minnesota Statutes 2022, section 245I.11, is amended by adding a subdivision 
1164.15 	to read:
1164.16 		Subd. 6.Medication administration in children's day treatment settings. (a) For a 
1164.17 	program providing children's day treatment services under section 256B.0943, the license 
1164.18 	holder must maintain policies and procedures that state whether the program will store 
1164.19 	medication and administer or allow observed self-administration.
1164.20 	(b) For a program providing children's day treatment services under section 256B.0943 
1164.21 	that does not store medications but allows clients to use a medication that they keep in their 
1164.22 	own possession while participating in a program, the license holder must maintain 
1164.23 	documentation from a licensed prescriber regarding the safety of medications held by clients, 
1164.24 	including:
1164.25 	(1) an evaluation that the client is capable of holding and administering the medication 
1164.26 	safely;
1164.27 	(2) an evaluation of whether the medication is prone to diversion, misuse, or self-injury; 
1164.28 	and
1164.29 	(3) any conditions under which the license holder should no longer allow the client to 
1164.30 	maintain the medication in their own possession.

1165.1 	Sec. 11. Minnesota Statutes 2022, section 245I.20, subdivision 4, is amended to read:
1165.2 		Subd. 4.Minimum staffing standards. (a) A certification holder's treatment team must 
1165.3 	consist of at least four mental health professionals. At least two of the mental health 
1165.4 	professionals must be employed by or under contract with the mental health clinic for a 
1165.5 	minimum of 35 hours per week each. Each of the two mental health professionals must 
1165.6 	specialize in a different mental health discipline.
1165.7 	(b) The treatment team must include:
1165.8 	(1) a physician qualified as a mental health professional according to section 245I.04, 
1165.9 	subdivision 2, clause (4), or a nurse qualified as a mental health professional according to 
1165.10 	section 245I.04, subdivision 2, clause (1); and
1165.11 	(2) a psychologist qualified as a mental health professional according to section 245I.04, 
1165.12 	subdivision 2, clause (3).
1165.13 	(c) The staff persons fulfilling the requirement in paragraph (b) must provide clinical 
1165.14 	services at least:
1165.15 	(1) eight hours every two weeks if the mental health clinic has over 25.0 full-time 
1165.16 	equivalent treatment team members;
1165.17 	(2) eight hours each month if the mental health clinic has 15.1 to 25.0 full-time equivalent 
1165.18 	treatment team members;
1165.19 	(3) four hours each month if the mental health clinic has 5.1 to 15.0 full-time equivalent 
1165.20 	treatment team members; or
1165.21 	(4) two hours each month if the mental health clinic has 2.0 to 5.0 full-time equivalent 
1165.22 	treatment team members or only provides in-home services to clients.
1165.23 	(d) The certification holder must maintain a record that demonstrates compliance with 
1165.24 	this subdivision.

1165.25 	Sec. 12. Minnesota Statutes 2022, section 245I.23, subdivision 14, is amended to read:
1165.26 		Subd. 14.Weekly team meetings. (a) The license holder must hold weekly team meetings 
1165.27 	and ancillary meetings according to this subdivision.
1165.28 	(b) A mental health professional or certified rehabilitation specialist must hold at least 
1165.29 	one team meeting each calendar week and. The mental health professional or certified 
1165.30 	rehabilitation specialist must lead and be physically present at the team meeting, except as 
1165.31 	permitted under paragraph (e). All treatment team members, including treatment team 
1166.1 	members who work on a part-time or intermittent basis, must participate in a minimum of 
1166.2 	one team meeting during each calendar week when the treatment team member is working 
1166.3 	for the license holder. The license holder must document all weekly team meetings, including 
1166.4 	the names of meeting attendees, and indicate whether the meeting was conducted remotely 
1166.5 	under paragraph (e).
1166.6 	(c) If a treatment team member cannot participate in a weekly team meeting, the treatment 
1166.7 	team member must participate in an ancillary meeting. A mental health professional, certified 
1166.8 	rehabilitation specialist, clinical trainee, or mental health practitioner who participated in 
1166.9 	the most recent weekly team meeting may lead the ancillary meeting. During the ancillary 
1166.10 	meeting, the treatment team member leading the ancillary meeting must review the 
1166.11 	information that was shared at the most recent weekly team meeting, including revisions 
1166.12 	to client treatment plans and other information that the treatment supervisors exchanged 
1166.13 	with treatment team members. The license holder must document all ancillary meetings, 
1166.14 	including the names of meeting attendees.
1166.15 	(d) If a treatment team member working only one shift during a week cannot participate 
1166.16 	in a weekly team meeting or participate in an ancillary meeting, the treatment team member 
1166.17 	must read the minutes of the weekly team meeting required to be documented in paragraph 
1166.18 	(b). The treatment team member must sign to acknowledge receipt of this information, and 
1166.19 	document pertinent information or questions. The mental health professional or certified 
1166.20 	rehabilitation specialist must review any documented questions or pertinent information 
1166.21 	before the next weekly team meeting.
1166.22 	(e) A license holder may permit a mental health professional or certified rehabilitation 
1166.23 	specialist to lead the weekly meeting remotely due to medical or weather conditions. If the 
1166.24 	conditions that do not permit physical presence persist for longer than one week, the license 
1166.25 	holder must request a variance to conduct additional meetings remotely.

1166.26 	Sec. 13. Minnesota Statutes 2023 Supplement, section 254B.04, subdivision 1a, is amended 
1166.27 	to read:
1166.28 		Subd. 1a.Client eligibility. (a) Persons eligible for benefits under Code of Federal 
1166.29 	Regulations, title 25, part 20, who meet the income standards of section 256B.056, 
1166.30 	subdivision 4, and are not enrolled in medical assistance, are entitled to behavioral health 
1166.31 	fund services. State money appropriated for this paragraph must be placed in a separate 
1166.32 	account established for this purpose.
1166.33 	(b) Persons with dependent children who are determined to be in need of substance use 
1166.34 	disorder treatment pursuant to an assessment under section 260E.20, subdivision 1, or in 
1167.1 	need of chemical dependency treatment pursuant to a case plan under section 260C.201, 
1167.2 	subdivision 6, or 260C.212, shall be assisted by the local agency to access needed treatment 
1167.3 	services. Treatment services must be appropriate for the individual or family, which may 
1167.4 	include long-term care treatment or treatment in a facility that allows the dependent children 
1167.5 	to stay in the treatment facility. The county shall pay for out-of-home placement costs, if 
1167.6 	applicable.
1167.7 	(c) Notwithstanding paragraph (a), persons any person enrolled in medical assistance 
1167.8 	are or MinnesotaCare is eligible for room and board services under section 254B.05, 
1167.9 	subdivision 5, paragraph (b), clause (12) (9).
1167.10 	(d) A client is eligible to have substance use disorder treatment paid for with funds from 
1167.11 	the behavioral health fund when the client:
1167.12 	(1) is eligible for MFIP as determined under chapter 256J;
1167.13 	(2) is eligible for medical assistance as determined under Minnesota Rules, parts 
1167.14 	9505.0010 to 9505.0150;
1167.15 	(3) is eligible for general assistance, general assistance medical care, or work readiness 
1167.16 	as determined under Minnesota Rules, parts 9500.1200 to 9500.1318; or
1167.17 	(4) has income that is within current household size and income guidelines for entitled 
1167.18 	persons, as defined in this subdivision and subdivision 7.
1167.19 	(e) Clients who meet the financial eligibility requirement in paragraph (a) and who have 
1167.20 	a third-party payment source are eligible for the behavioral health fund if the third-party 
1167.21 	payment source pays less than 100 percent of the cost of treatment services for eligible 
1167.22 	clients.
1167.23 	(f) A client is ineligible to have substance use disorder treatment services paid for with 
1167.24 	behavioral health fund money if the client:
1167.25 	(1) has an income that exceeds current household size and income guidelines for entitled 
1167.26 	persons as defined in this subdivision and subdivision 7; or
1167.27 	(2) has an available third-party payment source that will pay the total cost of the client's 
1167.28 	treatment.
1167.29 	(g) A client who is disenrolled from a state prepaid health plan during a treatment episode 
1167.30 	is eligible for continued treatment service that is paid for by the behavioral health fund until 
1167.31 	the treatment episode is completed or the client is re-enrolled in a state prepaid health plan 
1167.32 	if the client:
1168.1 	(1) continues to be enrolled in MinnesotaCare, medical assistance, or general assistance 
1168.2 	medical care; or
1168.3 	(2) is eligible according to paragraphs (a) and (b) and is determined eligible by a local 
1168.4 	agency under section 254B.04.
1168.5 	(h) When a county commits a client under chapter 253B to a regional treatment center 
1168.6 	for substance use disorder services and the client is ineligible for the behavioral health fund, 
1168.7 	the county is responsible for the payment to the regional treatment center according to 
1168.8 	section 254B.05, subdivision 4.
1168.9 	(i) Persons enrolled in MinnesotaCare are eligible for room and board services when 
1168.10 	provided through intensive residential treatment services and residential crisis services under 
1168.11 	section 256B.0622.

1168.12 	EFFECTIVE DATE. This section is effective January 1, 2025.

1168.13 	Sec. 14. [256B.0617] MENTAL HEALTH SERVICES PROVIDER 
1168.14 	CERTIFICATION.
1168.15 	(a) The commissioner of human services shall establish an initial provider entity 
1168.16 	application and certification and recertification processes to determine whether a provider 
1168.17 	entity has administrative and clinical infrastructures that meet the certification requirements. 
1168.18 	This process applies to providers of the following services:
1168.19 	(1) children's intensive behavioral health services under section 256B.0946; and
1168.20 	(2) intensive nonresidential rehabilitative mental health services under section 256B.0947.
1168.21 	(b) The commissioner shall recertify a provider entity every three years using the 
1168.22 	individual provider's certification anniversary or the calendar year end. The commissioner 
1168.23 	may approve a recertification extension in the interest of sustaining services when a certain 
1168.24 	date for recertification is identified.
1168.25 	(c) The commissioner shall establish a process for decertification of a provider entity 
1168.26 	and shall require corrective action, medical assistance repayment, or decertification of a 
1168.27 	provider entity that no longer meets the requirements in this section or that fails to meet the 
1168.28 	clinical quality standards or administrative standards provided by the commissioner in the 
1168.29 	application and certification process.
1168.30 	(d) The commissioner must provide the following to provider entities for the certification, 
1168.31 	recertification, and decertification processes:
1168.32 	(1) a structured listing of required provider certification criteria;
1169.1 	(2) a formal written letter with a determination of certification, recertification, or 
1169.2 	decertification signed by the commissioner or the appropriate division director; and
1169.3 	(3) a formal written communication outlining the process for necessary corrective action 
1169.4 	and follow-up by the commissioner signed by the commissioner or their designee, if 
1169.5 	applicable. In the case of corrective action, the commissioner may schedule interim 
1169.6 	recertification site reviews to confirm certification or decertification.

1169.7 	EFFECTIVE DATE. This section is effective July 1, 2024, and the commissioner of 
1169.8 	human services must implement all requirements of this section by September 1, 2024.

1169.9 	Sec. 15. Minnesota Statutes 2022, section 256B.0622, subdivision 2a, is amended to read:
1169.10 		Subd. 2a.Eligibility for assertive community treatment. (a) An eligible client for 
1169.11 	assertive community treatment is an individual who meets the following criteria as assessed 
1169.12 	by an ACT team:
1169.13 	(1) is age 18 or older. Individuals ages 16 and 17 may be eligible upon approval by the 
1169.14 	commissioner;
1169.15 	(2) has a primary diagnosis of schizophrenia, schizoaffective disorder, major depressive 
1169.16 	disorder with psychotic features, other psychotic disorders, or bipolar disorder. Individuals 
1169.17 	with other psychiatric illnesses may qualify for assertive community treatment if they have 
1169.18 	a serious mental illness and meet the criteria outlined in clauses (3) and (4), but no more 
1169.19 	than ten percent of an ACT team's clients may be eligible based on this criteria. Individuals 
1169.20 	with a primary diagnosis of a substance use disorder, intellectual developmental disabilities, 
1169.21 	borderline personality disorder, antisocial personality disorder, traumatic brain injury, or 
1169.22 	an autism spectrum disorder are not eligible for assertive community treatment;
1169.23 	(3) has significant functional impairment as demonstrated by at least one of the following 
1169.24 	conditions:
1169.25 	(i) significant difficulty consistently performing the range of routine tasks required for 
1169.26 	basic adult functioning in the community or persistent difficulty performing daily living 
1169.27 	tasks without significant support or assistance;
1169.28 	(ii) significant difficulty maintaining employment at a self-sustaining level or significant 
1169.29 	difficulty consistently carrying out the head-of-household responsibilities; or
1169.30 	(iii) significant difficulty maintaining a safe living situation;
1169.31 	(4) has a need for continuous high-intensity services as evidenced by at least two of the 
1169.32 	following:
1170.1 	(i) two or more psychiatric hospitalizations or residential crisis stabilization services in 
1170.2 	the previous 12 months;
1170.3 	(ii) frequent utilization of mental health crisis services in the previous six months;
1170.4 	(iii) 30 or more consecutive days of psychiatric hospitalization in the previous 24 months;
1170.5 	(iv) intractable, persistent, or prolonged severe psychiatric symptoms;
1170.6 	(v) coexisting mental health and substance use disorders lasting at least six months;
1170.7 	(vi) recent history of involvement with the criminal justice system or demonstrated risk 
1170.8 	of future involvement;
1170.9 	(vii) significant difficulty meeting basic survival needs;
1170.10 	(viii) residing in substandard housing, experiencing homelessness, or facing imminent 
1170.11 	risk of homelessness;
1170.12 	(ix) significant impairment with social and interpersonal functioning such that basic 
1170.13 	needs are in jeopardy;
1170.14 	(x) coexisting mental health and physical health disorders lasting at least six months;
1170.15 	(xi) residing in an inpatient or supervised community residence but clinically assessed 
1170.16 	to be able to live in a more independent living situation if intensive services are provided;
1170.17 	(xii) requiring a residential placement if more intensive services are not available; or
1170.18 	(xiii) difficulty effectively using traditional office-based outpatient services;
1170.19 	(5) there are no indications that other available community-based services would be 
1170.20 	equally or more effective as evidenced by consistent and extensive efforts to treat the 
1170.21 	individual; and
1170.22 	(6) in the written opinion of a licensed mental health professional, has the need for mental 
1170.23 	health services that cannot be met with other available community-based services, or is 
1170.24 	likely to experience a mental health crisis or require a more restrictive setting if assertive 
1170.25 	community treatment is not provided.
1170.26 	(b) An individual meets the criteria for assertive community treatment under this section 
1170.27 	if they have participated within the last year or are currently participating in a first episode 
1170.28 	of psychosis program if the individual:
1170.29 	(1) meets the eligibility requirements outlined in paragraph (a), clauses (1), (2), (5), and 
1170.30 	(6); and
1171.1 	(2) needs the level of intensity provided by an ACT team, in the opinion of the individual's 
1171.2 	first episode of psychosis program, in order to prevent crisis services use, hospitalization, 
1171.3 	homelessness, and involvement with the criminal justice system.

1171.4 	Sec. 16. Minnesota Statutes 2022, section 256B.0622, subdivision 3a, is amended to read:
1171.5 		Subd. 3a.Provider certification and contract requirements for assertive community 
1171.6 	treatment. (a) The assertive community treatment provider must:
1171.7 	(1) have a contract with the host county to provide assertive community treatment 
1171.8 	services; and
1171.9 	(2) have each ACT team be certified by the state following the certification process and 
1171.10 	procedures developed by the commissioner. The certification process determines whether 
1171.11 	the ACT team meets the standards for assertive community treatment under this section, 
1171.12 	the standards in chapter 245I as required in section 245I.011, subdivision 5, and minimum 
1171.13 	program fidelity standards as measured by a nationally recognized fidelity tool approved 
1171.14 	by the commissioner. Recertification must occur at least every three years.
1171.15 	(b) An ACT team certified under this subdivision must meet the following standards:
1171.16 	(1) have capacity to recruit, hire, manage, and train required ACT team members;
1171.17 	(2) have adequate administrative ability to ensure availability of services;
1171.18 	(3) ensure flexibility in service delivery to respond to the changing and intermittent care 
1171.19 	needs of a client as identified by the client and the individual treatment plan;
1171.20 	(4) keep all necessary records required by law;
1171.21 	(5) be an enrolled Medicaid provider; and
1171.22 	(6) establish and maintain a quality assurance plan to determine specific service outcomes 
1171.23 	and the client's satisfaction with services.
1171.24 	(c) The commissioner may intervene at any time and decertify an ACT team with cause. 
1171.25 	The commissioner shall establish a process for decertification of an ACT team and shall 
1171.26 	require corrective action, medical assistance repayment, or decertification of an ACT team 
1171.27 	that no longer meets the requirements in this section or that fails to meet the clinical quality 
1171.28 	standards or administrative standards provided by the commissioner in the application and 
1171.29 	certification process. The decertification is subject to appeal to the state.

1172.1 	Sec. 17. Minnesota Statutes 2022, section 256B.0622, subdivision 7a, is amended to read:
1172.2 		Subd. 7a.Assertive community treatment team staff requirements and roles. (a) 
1172.3 	The required treatment staff qualifications and roles for an ACT team are:
1172.4 	(1) the team leader:
1172.5 	(i) shall be a mental health professional. Individuals who are not licensed but who are 
1172.6 	eligible for licensure and are otherwise qualified may also fulfill this role but must obtain 
1172.7 	full licensure within 24 months of assuming the role of team leader;
1172.8 	(ii) must be an active member of the ACT team and provide some direct services to 
1172.9 	clients;
1172.10 	(iii) must be a single full-time staff member, dedicated to the ACT team, who is 
1172.11 	responsible for overseeing the administrative operations of the team, providing treatment 
1172.12 	supervision of services in conjunction with the psychiatrist or psychiatric care provider, and 
1172.13 	supervising team members to ensure delivery of best and ethical practices; and
1172.14 	(iv) must be available to provide ensure that overall treatment supervision to the ACT 
1172.15 	team is available after regular business hours and on weekends and holidays. The team 
1172.16 	leader may delegate this duty to another and is provided by a qualified member of the ACT 
1172.17 	team;
1172.18 	(2) the psychiatric care provider:
1172.19 	(i) must be a mental health professional permitted to prescribe psychiatric medications 
1172.20 	as part of the mental health professional's scope of practice. The psychiatric care provider 
1172.21 	must have demonstrated clinical experience working with individuals with serious and 
1172.22 	persistent mental illness;
1172.23 	(ii) shall collaborate with the team leader in sharing overall clinical responsibility for 
1172.24 	screening and admitting clients; monitoring clients' treatment and team member service 
1172.25 	delivery; educating staff on psychiatric and nonpsychiatric medications, their side effects, 
1172.26 	and health-related conditions; actively collaborating with nurses; and helping provide 
1172.27 	treatment supervision to the team;
1172.28 	(iii) shall fulfill the following functions for assertive community treatment clients: 
1172.29 	provide assessment and treatment of clients' symptoms and response to medications, including 
1172.30 	side effects; provide brief therapy to clients; provide diagnostic and medication education 
1172.31 	to clients, with medication decisions based on shared decision making; monitor clients' 
1172.32 	nonpsychiatric medical conditions and nonpsychiatric medications; and conduct home and 
1172.33 	community visits;
1173.1 	(iv) shall serve as the point of contact for psychiatric treatment if a client is hospitalized 
1173.2 	for mental health treatment and shall communicate directly with the client's inpatient 
1173.3 	psychiatric care providers to ensure continuity of care;
1173.4 	(v) shall have a minimum full-time equivalency that is prorated at a rate of 16 hours per 
1173.5 	50 clients. Part-time psychiatric care providers shall have designated hours to work on the 
1173.6 	team, with sufficient blocks of time on consistent days to carry out the provider's clinical, 
1173.7 	supervisory, and administrative responsibilities. No more than two psychiatric care providers 
1173.8 	may share this role; and
1173.9 	(vi) shall provide psychiatric backup to the program after regular business hours and on 
1173.10 	weekends and holidays. The psychiatric care provider may delegate this duty to another 
1173.11 	qualified psychiatric provider;
1173.12 	(3) the nursing staff:
1173.13 	(i) shall consist of one to three registered nurses or advanced practice registered nurses, 
1173.14 	of whom at least one has a minimum of one-year experience working with adults with 
1173.15 	serious mental illness and a working knowledge of psychiatric medications. No more than 
1173.16 	two individuals can share a full-time equivalent position;
1173.17 	(ii) are responsible for managing medication, administering and documenting medication 
1173.18 	treatment, and managing a secure medication room; and
1173.19 	(iii) shall develop strategies, in collaboration with clients, to maximize taking medications 
1173.20 	as prescribed; screen and monitor clients' mental and physical health conditions and 
1173.21 	medication side effects; engage in health promotion, prevention, and education activities; 
1173.22 	communicate and coordinate services with other medical providers; facilitate the development 
1173.23 	of the individual treatment plan for clients assigned; and educate the ACT team in monitoring 
1173.24 	psychiatric and physical health symptoms and medication side effects;
1173.25 	(4) the co-occurring disorder specialist:
1173.26 	(i) shall be a full-time equivalent co-occurring disorder specialist who has received 
1173.27 	specific training on co-occurring disorders that is consistent with national evidence-based 
1173.28 	practices. The training must include practical knowledge of common substances and how 
1173.29 	they affect mental illnesses, the ability to assess substance use disorders and the client's 
1173.30 	stage of treatment, motivational interviewing, and skills necessary to provide counseling to 
1173.31 	clients at all different stages of change and treatment. The co-occurring disorder specialist 
1173.32 	may also be an individual who is a licensed alcohol and drug counselor as described in 
1173.33 	section 148F.01, subdivision 5, or a counselor who otherwise meets the training, experience, 
1174.1 	and other requirements in section 245G.11, subdivision 5. No more than two co-occurring 
1174.2 	disorder specialists may occupy this role; and
1174.3 	(ii) shall provide or facilitate the provision of co-occurring disorder treatment to clients. 
1174.4 	The co-occurring disorder specialist shall serve as a consultant and educator to fellow ACT 
1174.5 	team members on co-occurring disorders;
1174.6 	(5) the vocational specialist:
1174.7 	(i) shall be a full-time vocational specialist who has at least one-year experience providing 
1174.8 	employment services or advanced education that involved field training in vocational services 
1174.9 	to individuals with mental illness. An individual who does not meet these qualifications 
1174.10 	may also serve as the vocational specialist upon completing a training plan approved by the 
1174.11 	commissioner;
1174.12 	(ii) shall provide or facilitate the provision of vocational services to clients. The vocational 
1174.13 	specialist serves as a consultant and educator to fellow ACT team members on these services; 
1174.14 	and
1174.15 	(iii) must not refer individuals to receive any type of vocational services or linkage by 
1174.16 	providers outside of the ACT team;
1174.17 	(6) the mental health certified peer specialist:
1174.18 	(i) shall be a full-time equivalent. No more than two individuals can share this position. 
1174.19 	The mental health certified peer specialist is a fully integrated team member who provides 
1174.20 	highly individualized services in the community and promotes the self-determination and 
1174.21 	shared decision-making abilities of clients. This requirement may be waived due to workforce 
1174.22 	shortages upon approval of the commissioner;
1174.23 	(ii) must provide coaching, mentoring, and consultation to the clients to promote recovery, 
1174.24 	self-advocacy, and self-direction, promote wellness management strategies, and assist clients 
1174.25 	in developing advance directives; and
1174.26 	(iii) must model recovery values, attitudes, beliefs, and personal action to encourage 
1174.27 	wellness and resilience, provide consultation to team members, promote a culture where 
1174.28 	the clients' points of view and preferences are recognized, understood, respected, and 
1174.29 	integrated into treatment, and serve in a manner equivalent to other team members;
1174.30 	(7) the program administrative assistant shall be a full-time office-based program 
1174.31 	administrative assistant position assigned to solely work with the ACT team, providing a 
1174.32 	range of supports to the team, clients, and families; and
1175.1 	(8) additional staff:
1175.2 	(i) shall be based on team size. Additional treatment team staff may include mental 
1175.3 	health professionals; clinical trainees; certified rehabilitation specialists; mental health 
1175.4 	practitioners; or mental health rehabilitation workers. These individuals shall have the 
1175.5 	knowledge, skills, and abilities required by the population served to carry out rehabilitation 
1175.6 	and support functions; and
1175.7 	(ii) shall be selected based on specific program needs or the population served.
1175.8 	(b) Each ACT team must clearly document schedules for all ACT team members.
1175.9 	(c) Each ACT team member must serve as a primary team member for clients assigned 
1175.10 	by the team leader and are responsible for facilitating the individual treatment plan process 
1175.11 	for those clients. The primary team member for a client is the responsible team member 
1175.12 	knowledgeable about the client's life and circumstances and writes the individual treatment 
1175.13 	plan. The primary team member provides individual supportive therapy or counseling, and 
1175.14 	provides primary support and education to the client's family and support system.
1175.15 	(d) Members of the ACT team must have strong clinical skills, professional qualifications, 
1175.16 	experience, and competency to provide a full breadth of rehabilitation services. Each staff 
1175.17 	member shall be proficient in their respective discipline and be able to work collaboratively 
1175.18 	as a member of a multidisciplinary team to deliver the majority of the treatment, 
1175.19 	rehabilitation, and support services clients require to fully benefit from receiving assertive 
1175.20 	community treatment.
1175.21 	(e) Each ACT team member must fulfill training requirements established by the 
1175.22 	commissioner.

1175.23 	Sec. 18. Minnesota Statutes 2023 Supplement, section 256B.0622, subdivision 7b, is 
1175.24 	amended to read:
1175.25 		Subd. 7b.Assertive community treatment program size and opportunities scores. (a)
1175.26 	Each ACT team shall maintain an annual average caseload that does not exceed 100 clients. 
1175.27 	Staff-to-client ratios shall be based on team size as follows: must demonstrate that the team 
1175.28 	attained a passing score according to the most recently issued Tool for Measurement of 
1175.29 	Assertive Community Treatment (TMACT).
1175.30 	(1) a small ACT team must:
1175.31 	(i) employ at least six but no more than seven full-time treatment team staff, excluding 
1175.32 	the program assistant and the psychiatric care provider;
1176.1 	(ii) serve an annual average maximum of no more than 50 clients;
1176.2 	(iii) ensure at least one full-time equivalent position for every eight clients served;
1176.3 	(iv) schedule ACT team staff on weekdays and on-call duty to provide crisis services 
1176.4 	and deliver services after hours when staff are not working;
1176.5 	(v) provide crisis services during business hours if the small ACT team does not have 
1176.6 	sufficient staff numbers to operate an after-hours on-call system. During all other hours, 
1176.7 	the ACT team may arrange for coverage for crisis assessment and intervention services 
1176.8 	through a reliable crisis-intervention provider as long as there is a mechanism by which the 
1176.9 	ACT team communicates routinely with the crisis-intervention provider and the on-call 
1176.10 	ACT team staff are available to see clients face-to-face when necessary or if requested by 
1176.11 	the crisis-intervention services provider;
1176.12 	(vi) adjust schedules and provide staff to carry out the needed service activities in the 
1176.13 	evenings or on weekend days or holidays, when necessary;
1176.14 	(vii) arrange for and provide psychiatric backup during all hours the psychiatric care 
1176.15 	provider is not regularly scheduled to work. If availability of the ACT team's psychiatric 
1176.16 	care provider during all hours is not feasible, alternative psychiatric prescriber backup must 
1176.17 	be arranged and a mechanism of timely communication and coordination established in 
1176.18 	writing; and
1176.19 	(viii) be composed of, at minimum, one full-time team leader, at least 16 hours each 
1176.20 	week per 50 clients of psychiatric provider time, or equivalent if fewer clients, one full-time 
1176.21 	equivalent nursing, one full-time co-occurring disorder specialist, one full-time equivalent 
1176.22 	mental health certified peer specialist, one full-time vocational specialist, one full-time 
1176.23 	program assistant, and at least one additional full-time ACT team member who has mental 
1176.24 	health professional, certified rehabilitation specialist, clinical trainee, or mental health 
1176.25 	practitioner status; and
1176.26 	(2) a midsize ACT team shall:
1176.27 	(i) be composed of, at minimum, one full-time team leader, at least 16 hours of psychiatry 
1176.28 	time for 51 clients, with an additional two hours for every six clients added to the team, 1.5 
1176.29 	to two full-time equivalent nursing staff, one full-time co-occurring disorder specialist, one 
1176.30 	full-time equivalent mental health certified peer specialist, one full-time vocational specialist, 
1176.31 	one full-time program assistant, and at least 1.5 to two additional full-time equivalent ACT 
1176.32 	members, with at least one dedicated full-time staff member with mental health professional 
1177.1 	status. Remaining team members may have mental health professional, certified rehabilitation 
1177.2 	specialist, clinical trainee, or mental health practitioner status;
1177.3 	(ii) employ seven or more treatment team full-time equivalents, excluding the program 
1177.4 	assistant and the psychiatric care provider;
1177.5 	(iii) serve an annual average maximum caseload of 51 to 74 clients;
1177.6 	(iv) ensure at least one full-time equivalent position for every nine clients served;
1177.7 	(v) schedule ACT team staff for a minimum of ten-hour shift coverage on weekdays 
1177.8 	and six- to eight-hour shift coverage on weekends and holidays. In addition to these minimum 
1177.9 	specifications, staff are regularly scheduled to provide the necessary services on a 
1177.10 	client-by-client basis in the evenings and on weekends and holidays;
1177.11 	(vi) schedule ACT team staff on-call duty to provide crisis services and deliver services 
1177.12 	when staff are not working;
1177.13 	(vii) have the authority to arrange for coverage for crisis assessment and intervention 
1177.14 	services through a reliable crisis-intervention provider as long as there is a mechanism by 
1177.15 	which the ACT team communicates routinely with the crisis-intervention provider and the 
1177.16 	on-call ACT team staff are available to see clients face-to-face when necessary or if requested 
1177.17 	by the crisis-intervention services provider; and
1177.18 	(viii) arrange for and provide psychiatric backup during all hours the psychiatric care 
1177.19 	provider is not regularly scheduled to work. If availability of the psychiatric care provider 
1177.20 	during all hours is not feasible, alternative psychiatric prescriber backup must be arranged 
1177.21 	and a mechanism of timely communication and coordination established in writing;
1177.22 	(3) a large ACT team must:
1177.23 	(i) be composed of, at minimum, one full-time team leader, at least 32 hours each week 
1177.24 	per 100 clients, or equivalent of psychiatry time, three full-time equivalent nursing staff, 
1177.25 	one full-time co-occurring disorder specialist, one full-time equivalent mental health certified 
1177.26 	peer specialist, one full-time vocational specialist, one full-time program assistant, and at 
1177.27 	least two additional full-time equivalent ACT team members, with at least one dedicated 
1177.28 	full-time staff member with mental health professional status. Remaining team members 
1177.29 	may have mental health professional or mental health practitioner status;
1177.30 	(ii) employ nine or more treatment team full-time equivalents, excluding the program 
1177.31 	assistant and psychiatric care provider;
1177.32 	(iii) serve an annual average maximum caseload of 75 to 100 clients;
1178.1 	(iv) ensure at least one full-time equivalent position for every nine individuals served;
1178.2 	(v) schedule staff to work two eight-hour shifts, with a minimum of two staff on the 
1178.3 	second shift providing services at least 12 hours per day weekdays. For weekends and 
1178.4 	holidays, the team must operate and schedule ACT team staff to work one eight-hour shift, 
1178.5 	with a minimum of two staff each weekend day and every holiday;
1178.6 	(vi) schedule ACT team staff on-call duty to provide crisis services and deliver services 
1178.7 	when staff are not working; and
1178.8 	(vii) arrange for and provide psychiatric backup during all hours the psychiatric care 
1178.9 	provider is not regularly scheduled to work. If availability of the ACT team psychiatric care 
1178.10 	provider during all hours is not feasible, alternative psychiatric backup must be arranged 
1178.11 	and a mechanism of timely communication and coordination established in writing.
1178.12 	(b) An ACT team of any size may have a staff-to-client ratio that is lower than the 
1178.13 	requirements described in paragraph (a) upon approval by the commissioner, but may not 
1178.14 	exceed a one-to-ten staff-to-client ratio.

1178.15 	Sec. 19. Minnesota Statutes 2022, section 256B.0622, subdivision 7d, is amended to read:
1178.16 		Subd. 7d.Assertive community treatment assessment and individual treatment 
1178.17 	plan. (a) An initial assessment shall be completed the day of the client's admission to 
1178.18 	assertive community treatment by the ACT team leader or the psychiatric care provider, 
1178.19 	with participation by designated ACT team members and the client. The initial assessment 
1178.20 	must include obtaining or completing a standard diagnostic assessment according to section 
1178.21 	245I.10, subdivision 6, and completing a 30-day individual treatment plan. The team leader, 
1178.22 	psychiatric care provider, or other mental health professional designated by the team leader 
1178.23 	or psychiatric care provider, must update the client's diagnostic assessment at least annually
1178.24 	as required under section 245I.10, subdivision 2, paragraphs (f) and (g).
1178.25 	(b) A functional assessment must be completed according to section 245I.10, subdivision 
1178.26 	9. Each part of the functional assessment areas shall be completed by each respective team 
1178.27 	specialist or an ACT team member with skill and knowledge in the area being assessed.
1178.28 	(c) Between 30 and 45 days after the client's admission to assertive community treatment, 
1178.29 	the entire ACT team must hold a comprehensive case conference, where all team members, 
1178.30 	including the psychiatric provider, present information discovered from the completed 
1178.31 	assessments and provide treatment recommendations. The conference must serve as the 
1178.32 	basis for the first individual treatment plan, which must be written by the primary team 
1178.33 	member.
1179.1 	(d) The client's psychiatric care provider, primary team member, and individual treatment 
1179.2 	team members shall assume responsibility for preparing the written narrative of the results 
1179.3 	from the psychiatric and social functioning history timeline and the comprehensive 
1179.4 	assessment.
1179.5 	(e) The primary team member and individual treatment team members shall be assigned 
1179.6 	by the team leader in collaboration with the psychiatric care provider by the time of the first 
1179.7 	treatment planning meeting or 30 days after admission, whichever occurs first.
1179.8 	(f) Individual treatment plans must be developed through the following treatment planning 
1179.9 	process:
1179.10 	(1) The individual treatment plan shall be developed in collaboration with the client and 
1179.11 	the client's preferred natural supports, and guardian, if applicable and appropriate. The ACT 
1179.12 	team shall evaluate, together with each client, the client's needs, strengths, and preferences 
1179.13 	and develop the individual treatment plan collaboratively. The ACT team shall make every 
1179.14 	effort to ensure that the client and the client's family and natural supports, with the client's 
1179.15 	consent, are in attendance at the treatment planning meeting, are involved in ongoing 
1179.16 	meetings related to treatment, and have the necessary supports to fully participate. The 
1179.17 	client's participation in the development of the individual treatment plan shall be documented.
1179.18 	(2) The client and the ACT team shall work together to formulate and prioritize the 
1179.19 	issues, set goals, research approaches and interventions, and establish the plan. The plan is 
1179.20 	individually tailored so that the treatment, rehabilitation, and support approaches and 
1179.21 	interventions achieve optimum symptom reduction, help fulfill the personal needs and 
1179.22 	aspirations of the client, take into account the cultural beliefs and realities of the individual, 
1179.23 	and improve all the aspects of psychosocial functioning that are important to the client. The 
1179.24 	process supports strengths, rehabilitation, and recovery.
1179.25 	(3) Each client's individual treatment plan shall identify service needs, strengths and 
1179.26 	capacities, and barriers, and set specific and measurable short- and long-term goals for each 
1179.27 	service need. The individual treatment plan must clearly specify the approaches and 
1179.28 	interventions necessary for the client to achieve the individual goals, when the interventions 
1179.29 	shall happen, and identify which ACT team member shall carry out the approaches and 
1179.30 	interventions.
1179.31 	(4) The primary team member and the individual treatment team, together with the client 
1179.32 	and the client's family and natural supports with the client's consent, are responsible for 
1179.33 	reviewing and rewriting the treatment goals and individual treatment plan whenever there 
1179.34 	is a major decision point in the client's course of treatment or at least every six months.
1180.1 	(5) The primary team member shall prepare a summary that thoroughly describes in 
1180.2 	writing the client's and the individual treatment team's evaluation of the client's progress 
1180.3 	and goal attainment, the effectiveness of the interventions, and the satisfaction with services 
1180.4 	since the last individual treatment plan. The client's most recent diagnostic assessment must 
1180.5 	be included with the treatment plan summary.
1180.6 	(6) The individual treatment plan and review must be approved or acknowledged by the 
1180.7 	client, the primary team member, the team leader, the psychiatric care provider, and all 
1180.8 	individual treatment team members. A copy of the approved individual treatment plan must 
1180.9 	be made available to the client.

1180.10 	Sec. 20. Minnesota Statutes 2022, section 256B.0623, subdivision 5, is amended to read:
1180.11 		Subd. 5.Qualifications of provider staff.  Adult rehabilitative mental health services 
1180.12 	must be provided by qualified individual provider staff of a certified provider entity. 
1180.13 	Individual provider staff must be qualified as:
1180.14 	(1) a mental health professional who is qualified according to section 245I.04, subdivision 
1180.15 	2;
1180.16 	(2) a certified rehabilitation specialist who is qualified according to section 245I.04, 
1180.17 	subdivision 8;
1180.18 	(3) a clinical trainee who is qualified according to section 245I.04, subdivision 6;
1180.19 	(4) a mental health practitioner qualified according to section 245I.04, subdivision 4;
1180.20 	(5) a mental health certified peer specialist who is qualified according to section 245I.04, 
1180.21 	subdivision 10; or
1180.22 	(6) a mental health rehabilitation worker who is qualified according to section 245I.04, 
1180.23 	subdivision 14.; or
1180.24 	(7) a licensed occupational therapist, as defined in section 148.6402, subdivision 14.

1180.25 	EFFECTIVE DATE. This section is effective upon federal approval. The commissioner 
1180.26 	of human services must notify the revisor of statutes when federal approval is obtained.

1180.27 	Sec. 21. Minnesota Statutes 2023 Supplement, section 256B.0625, subdivision 5m, is 
1180.28 	amended to read:
1180.29 		Subd. 5m.Certified community behavioral health clinic services. (a) Medical 
1180.30 	assistance covers services provided by a not-for-profit certified community behavioral health 
1180.31 	clinic (CCBHC) that meets the requirements of section 245.735, subdivision 3.
1181.1 	(b) The commissioner shall reimburse CCBHCs on a per-day basis for each day that an 
1181.2 	eligible service is delivered using the CCBHC daily bundled rate system for medical 
1181.3 	assistance payments as described in paragraph (c). The commissioner shall include a quality 
1181.4 	incentive payment in the CCBHC daily bundled rate system as described in paragraph (e). 
1181.5 	There is no county share for medical assistance services when reimbursed through the 
1181.6 	CCBHC daily bundled rate system.
1181.7 	(c) The commissioner shall ensure that the CCBHC daily bundled rate system for CCBHC 
1181.8 	payments under medical assistance meets the following requirements:
1181.9 	(1) the CCBHC daily bundled rate shall be a provider-specific rate calculated for each 
1181.10 	CCBHC, based on the daily cost of providing CCBHC services and the total annual allowable 
1181.11 	CCBHC costs divided by the total annual number of CCBHC visits. For calculating the 
1181.12 	payment rate, total annual visits include visits covered by medical assistance and visits not 
1181.13 	covered by medical assistance. Allowable costs include but are not limited to the salaries 
1181.14 	and benefits of medical assistance providers; the cost of CCBHC services provided under 
1181.15 	section 245.735, subdivision 3, paragraph (a), clauses (6) and (7); and other costs such as 
1181.16 	insurance or supplies needed to provide CCBHC services;
1181.17 	(2) payment shall be limited to one payment per day per medical assistance enrollee 
1181.18 	when an eligible CCBHC service is provided. A CCBHC visit is eligible for reimbursement 
1181.19 	if at least one of the CCBHC services listed under section 245.735, subdivision 3, paragraph 
1181.20 	(a), clause (6), is furnished to a medical assistance enrollee by a health care practitioner or 
1181.21 	licensed agency employed by or under contract with a CCBHC;
1181.22 	(3) initial CCBHC daily bundled rates for newly certified CCBHCs under section 245.735, 
1181.23 	subdivision 3, shall be established by the commissioner using a provider-specific rate based 
1181.24 	on the newly certified CCBHC's audited historical cost report data adjusted for the expected 
1181.25 	cost of delivering CCBHC services. Estimates are subject to review by the commissioner 
1181.26 	and must include the expected cost of providing the full scope of CCBHC services and the 
1181.27 	expected number of visits for the rate period;
1181.28 	(4) the commissioner shall rebase CCBHC rates once every two years following the last 
1181.29 	rebasing and no less than 12 months following an initial rate or a rate change due to a change 
1181.30 	in the scope of services. For CCBHCs certified after September 31, 2020, and before January 
1181.31 	1, 2021, the commissioner shall rebase rates according to this clause for services provided 
1181.32 	on or after January 1, 2024;
1181.33 	(5) the commissioner shall provide for a 60-day appeals process after notice of the results 
1181.34 	of the rebasing;
1182.1 	(6) an entity that receives a CCBHC daily bundled rate that overlaps with another federal 
1182.2 	Medicaid rate is not eligible for the CCBHC rate methodology;
1182.3 	(7) payments for CCBHC services to individuals enrolled in managed care shall be 
1182.4 	coordinated with the state's phase-out of CCBHC wrap payments. The commissioner shall 
1182.5 	complete the phase-out of CCBHC wrap payments within 60 days of the implementation 
1182.6 	of the CCBHC daily bundled rate system in the Medicaid Management Information System 
1182.7 	(MMIS), for CCBHCs reimbursed under this chapter, with a final settlement of payments 
1182.8 	due made payable to CCBHCs no later than 18 months thereafter;
1182.9 	(8) the CCBHC daily bundled rate for each CCBHC shall be updated by trending each 
1182.10 	provider-specific rate by the Medicare Economic Index for primary care services. This 
1182.11 	update shall occur each year in between rebasing periods determined by the commissioner 
1182.12 	in accordance with clause (4). CCBHCs must provide data on costs and visits to the state 
1182.13 	annually using the CCBHC cost report established by the commissioner; and
1182.14 	(9) a CCBHC may request a rate adjustment for changes in the CCBHC's scope of 
1182.15 	services when such changes are expected to result in an adjustment to the CCBHC payment 
1182.16 	rate by 2.5 percent or more. The CCBHC must provide the commissioner with information 
1182.17 	regarding the changes in the scope of services, including the estimated cost of providing 
1182.18 	the new or modified services and any projected increase or decrease in the number of visits 
1182.19 	resulting from the change. Estimated costs are subject to review by the commissioner. Rate 
1182.20 	adjustments for changes in scope shall occur no more than once per year in between rebasing 
1182.21 	periods per CCBHC and are effective on the date of the annual CCBHC rate update.
1182.22 	(d) Managed care plans and county-based purchasing plans shall reimburse CCBHC 
1182.23 	providers at the CCBHC daily bundled rate. The commissioner shall monitor the effect of 
1182.24 	this requirement on the rate of access to the services delivered by CCBHC providers. If, for 
1182.25 	any contract year, federal approval is not received for this paragraph, the commissioner 
1182.26 	must adjust the capitation rates paid to managed care plans and county-based purchasing 
1182.27 	plans for that contract year to reflect the removal of this provision. Contracts between 
1182.28 	managed care plans and county-based purchasing plans and providers to whom this paragraph 
1182.29 	applies must allow recovery of payments from those providers if capitation rates are adjusted 
1182.30 	in accordance with this paragraph. Payment recoveries must not exceed the amount equal 
1182.31 	to any increase in rates that results from this provision. This paragraph expires if federal 
1182.32 	approval is not received for this paragraph at any time.
1182.33 	(e) The commissioner shall implement a quality incentive payment program for CCBHCs 
1182.34 	that meets the following requirements:
1183.1 	(1) a CCBHC shall receive a quality incentive payment upon meeting specific numeric 
1183.2 	thresholds for performance metrics established by the commissioner, in addition to payments 
1183.3 	for which the CCBHC is eligible under the CCBHC daily bundled rate system described in 
1183.4 	paragraph (c);
1183.5 	(2) a CCBHC must be certified and enrolled as a CCBHC for the entire measurement 
1183.6 	year to be eligible for incentive payments;
1183.7 	(3) each CCBHC shall receive written notice of the criteria that must be met in order to 
1183.8 	receive quality incentive payments at least 90 days prior to the measurement year; and
1183.9 	(4) a CCBHC must provide the commissioner with data needed to determine incentive 
1183.10 	payment eligibility within six months following the measurement year. The commissioner 
1183.11 	shall notify CCBHC providers of their performance on the required measures and the 
1183.12 	incentive payment amount within 12 months following the measurement year.
1183.13 	(f) All claims to managed care plans for CCBHC services as provided under this section 
1183.14 	shall be submitted directly to, and paid by, the commissioner on the dates specified no later 
1183.15 	than January 1 of the following calendar year, if:
1183.16 	(1) one or more managed care plans does not comply with the federal requirement for 
1183.17 	payment of clean claims to CCBHCs, as defined in Code of Federal Regulations, title 42, 
1183.18 	section 447.45(b), and the managed care plan does not resolve the payment issue within 30 
1183.19 	days of noncompliance; and
1183.20 	(2) the total amount of clean claims not paid in accordance with federal requirements 
1183.21 	by one or more managed care plans is 50 percent of, or greater than, the total CCBHC claims 
1183.22 	eligible for payment by managed care plans.
1183.23 	If the conditions in this paragraph are met between January 1 and June 30 of a calendar 
1183.24 	year, claims shall be submitted to and paid by the commissioner beginning on January 1 of 
1183.25 	the following year. If the conditions in this paragraph are met between July 1 and December 
1183.26 	31 of a calendar year, claims shall be submitted to and paid by the commissioner beginning 
1183.27 	on July 1 of the following year.
1183.28 	(g) Peer services provided by a CCBHC certified under section 245.735 are a covered 
1183.29 	service under medical assistance when a licensed mental health professional or alcohol and 
1183.30 	drug counselor determines that peer services are medically necessary. Eligibility under this 
1183.31 	subdivision for peer services provided by a CCBHC supersede eligibility standards under 
1183.32 	sections 256B.0615, 256B.0616, and 245G.07, subdivision 2, clause (8).

1184.1 	Sec. 22. Minnesota Statutes 2023 Supplement, section 256B.0671, subdivision 3, is 
1184.2 	amended to read:
1184.3 		Subd. 3.Adult day treatment services. (a) Medical assistance covers adult day treatment 
1184.4 	(ADT) services that are provided under contract with the county board. Adult day treatment 
1184.5 	payment is subject to the conditions in paragraphs (b) to (e). The provider must make 
1184.6 	reasonable and good faith efforts to report individual client outcomes to the commissioner 
1184.7 	using instruments, protocols, and forms approved by the commissioner.
1184.8 	(b) Adult day treatment is an intensive psychotherapeutic treatment to reduce or relieve 
1184.9 	the effects of mental illness on a client to enable the client to benefit from a lower level of 
1184.10 	care and to live and function more independently in the community. Adult day treatment 
1184.11 	services must be provided to a client to stabilize the client's mental health and to improve 
1184.12 	the client's independent living and socialization skills. Adult day treatment must consist of 
1184.13 	at least one hour of group psychotherapy and must include group time focused on 
1184.14 	rehabilitative interventions or other therapeutic services that a multidisciplinary team provides 
1184.15 	to each client. Adult day treatment services are not a part of inpatient or residential treatment 
1184.16 	services. The following providers may apply to become adult day treatment providers:
1184.17 	(1) a hospital accredited by the Joint Commission on Accreditation of Health 
1184.18 	Organizations with Centers for Medicare and Medicaid Services approved hospital 
1184.19 	accreditation and licensed under sections 144.50 to 144.55;
1184.20 	(2) a community mental health center under section 256B.0625, subdivision 5; or
1184.21 	(3) an entity that is under contract with the county board to operate a program that meets 
1184.22 	the requirements of section 245.4712, subdivision 2, and Minnesota Rules, parts 9505.0170 
1184.23 	to 9505.0475.
1184.24 	(c) An adult day treatment services provider must:
1184.25 	(1) ensure that the commissioner has approved of the organization as an adult day 
1184.26 	treatment provider organization;
1184.27 	(2) ensure that a multidisciplinary team provides ADT services to a group of clients. A 
1184.28 	mental health professional must supervise each multidisciplinary staff person who provides 
1184.29 	ADT services;
1184.30 	(3) make ADT services available to the client at least two days a week for at least three 
1184.31 	consecutive hours per day. ADT services may be longer than three hours per day, but medical 
1184.32 	assistance may not reimburse a provider for more than 15 hours per week;
1185.1 	(4) provide ADT services to each client that includes group psychotherapy by a mental 
1185.2 	health professional or clinical trainee and daily rehabilitative interventions by a mental 
1185.3 	health professional, clinical trainee, or mental health practitioner; and
1185.4 	(5) include ADT services in the client's individual treatment plan, when appropriate. 
1185.5 	The adult day treatment provider must:
1185.6 	(i) complete a functional assessment of each client under section 245I.10, subdivision 
1185.7 	9;
1185.8 	(ii) notwithstanding section 245I.10, subdivision 8, review the client's progress and 
1185.9 	update the individual treatment plan at least every 90 days until the client is discharged 
1185.10 	from the program; and
1185.11 	(iii) include a discharge plan for the client in the client's individual treatment plan.
1185.12 	(d) To be eligible for adult day treatment, a client must:
1185.13 	(1) be 18 years of age or older;
1185.14 	(2) not reside in a nursing facility, hospital, institute of mental disease, or state-operated 
1185.15 	treatment center unless the client has an active discharge plan that indicates a move to an 
1185.16 	independent living setting within 180 days;
1185.17 	(3) have the capacity to engage in rehabilitative programming, skills activities, and 
1185.18 	psychotherapy in the structured, therapeutic setting of an adult day treatment program and 
1185.19 	demonstrate measurable improvements in functioning resulting from participation in the 
1185.20 	adult day treatment program;
1185.21 	(4) have a level of care assessment under section 245I.02, subdivision 19, recommending 
1185.22 	that the client participate in services with the level of intensity and duration of an adult day 
1185.23 	treatment program; and
1185.24 	(5) have the recommendation of a mental health professional for adult day treatment 
1185.25 	services. The mental health professional must find that adult day treatment services are 
1185.26 	medically necessary for the client.
1185.27 	(e) Medical assistance does not cover the following services as adult day treatment 
1185.28 	services:
1185.29 	(1) services that are primarily recreational or that are provided in a setting that is not 
1185.30 	under medical supervision, including sports activities, exercise groups, craft hours, leisure 
1185.31 	time, social hours, meal or snack time, trips to community activities, and tours;
1186.1 	(2) social or educational services that do not have or cannot reasonably be expected to 
1186.2 	have a therapeutic outcome related to the client's mental illness;
1186.3 	(3) consultations with other providers or service agency staff persons about the care or 
1186.4 	progress of a client;
1186.5 	(4) prevention or education programs that are provided to the community;
1186.6 	(5) day treatment for clients with a primary diagnosis of a substance use disorder;
1186.7 	(6) day treatment provided in the client's home;
1186.8 	(7) psychotherapy for more than two hours per day; and
1186.9 	(8) participation in meal preparation and eating that is not part of a clinical treatment 
1186.10 	plan to address the client's eating disorder.

1186.11 	Sec. 23. Minnesota Statutes 2023 Supplement, section 256B.0671, subdivision 5, is 
1186.12 	amended to read:
1186.13 		Subd. 5.Child and family psychoeducation services. (a) Medical assistance covers
1186.14 	child and family psychoeducation services provided to a child up tounder age 21 with and 
1186.15 	the child's family members, when determined to be medically necessary due to a diagnosed
1186.16 	mental health condition when or diagnosed mental illness identified in the child's individual 
1186.17 	treatment plan and provided by a mental health professional who is qualified under section 
1186.18 	245I.04, subdivision 2, and practicing within the scope of practice under section 245I.04, 
1186.19 	subdivision 3; a mental health practitioner who is qualified under section 245I.04, subdivision 
1186.20 	4, and practicing within the scope of practice under section 245I.04, subdivision 5; or a 
1186.21 	clinical trainee who has determined it medically necessary to involve family members in 
1186.22 	the child's care is qualified under section 245I.04, subdivision 6, and practicing within the 
1186.23 	scope of practice under section 245I.04, subdivision 7.
1186.24 	(b) "Child and family psychoeducation services" means information or demonstration 
1186.25 	provided to an individual or family as part of an individual, family, multifamily group, or 
1186.26 	peer group session to explain, educate, and support the child and family in understanding 
1186.27 	a child's symptoms of mental illness, the impact on the child's development, and needed 
1186.28 	components of treatment and skill development so that the individual, family, or group can 
1186.29 	help the child to prevent relapse, prevent the acquisition of comorbid disorders, and achieve 
1186.30 	optimal mental health and long-term resilience.
1186.31 	(c) Child and family psychoeducation services include individual, family, or group skills 
1186.32 	development or training to:
1187.1 	(1) support the development of psychosocial skills that are medically necessary to 
1187.2 	rehabilitate the child to an age-appropriate developmental trajectory when the child's 
1187.3 	development was disrupted by a mental health condition or diagnosed mental illness; or
1187.4 	(2) enable the child to self-monitor, compensate for, cope with, counteract, or replace 
1187.5 	skills deficits or maladaptive skills acquired over the course of the child's mental health 
1187.6 	condition or mental illness.
1187.7 	(d) Skills development or training delivered to a child or the child's family under this 
1187.8 	subdivision must be targeted to the specific deficits related to the child's mental health 
1187.9 	condition or mental illness and must be prescribed in the child's individual treatment plan. 
1187.10 	Group skills training may be provided to multiple recipients who, because of the nature of 
1187.11 	their emotional, behavioral, or social functional ability, may benefit from interaction in a 
1187.12 	group setting.

1187.13 	EFFECTIVE DATE. This section is effective January 1, 2025, or upon federal approval, 
1187.14 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
1187.15 	when federal approval is obtained.

1187.16 	Sec. 24. Minnesota Statutes 2022, section 256B.0943, subdivision 3, is amended to read:
1187.17 		Subd. 3.Determination of client eligibility. (a) A client's eligibility to receive children's 
1187.18 	therapeutic services and supports under this section shall be determined based on a standard 
1187.19 	diagnostic assessment by a mental health professional or a clinical trainee that is performed 
1187.20 	within one year before the initial start of service and updated as required under section 
1187.21 	245I.10, subdivision 2. The standard diagnostic assessment must:
1187.22 	(1) determine whether a child under age 18 has a diagnosis of emotional disturbance or, 
1187.23 	if the person is between the ages of 18 and 21, whether the person has a mental illness;
1187.24 	(2) document children's therapeutic services and supports as medically necessary to 
1187.25 	address an identified disability, functional impairment, and the individual client's needs and 
1187.26 	goals; and
1187.27 	(3) be used in the development of the individual treatment plan.
1187.28 	(b) Notwithstanding paragraph (a), a client may be determined to be eligible for up to 
1187.29 	five days of day treatment under this section based on a hospital's medical history and 
1187.30 	presentation examination of the client.
1187.31 	(c) Children's therapeutic services and supports include development and rehabilitative 
1187.32 	services that support a child's developmental treatment needs.

1188.1 	Sec. 25. Minnesota Statutes 2022, section 256B.0943, subdivision 12, is amended to read:
1188.2 		Subd. 12.Excluded services. The following services are not eligible for medical 
1188.3 	assistance payment as children's therapeutic services and supports:
1188.4 	(1) service components of children's therapeutic services and supports simultaneously 
1188.5 	provided by more than one provider entity unless prior authorization is obtained;
1188.6 	(2) treatment by multiple providers within the same agency at the same clock time, 
1188.7 	unless one service is delivered to the child and the other service is delivered to the child's 
1188.8 	family or treatment team without the child present;
1188.9 	(3) children's therapeutic services and supports provided in violation of medical assistance 
1188.10 	policy in Minnesota Rules, part 9505.0220;
1188.11 	(4) mental health behavioral aide services provided by a personal care assistant who is 
1188.12 	not qualified as a mental health behavioral aide and employed by a certified children's 
1188.13 	therapeutic services and supports provider entity;
1188.14 	(5) service components of CTSS that are the responsibility of a residential or program 
1188.15 	license holder, including foster care providers under the terms of a service agreement or 
1188.16 	administrative rules governing licensure; and
1188.17 	(6) adjunctive activities that may be offered by a provider entity but are not otherwise 
1188.18 	covered by medical assistance, including:
1188.19 	(i) a service that is primarily recreation oriented or that is provided in a setting that is 
1188.20 	not medically supervised. This includes sports activities, exercise groups, activities such as 
1188.21 	craft hours, leisure time, social hours, meal or snack time, trips to community activities, 
1188.22 	and tours;
1188.23 	(ii) a social or educational service that does not have or cannot reasonably be expected 
1188.24 	to have a therapeutic outcome related to the client's emotional disturbance;
1188.25 	(iii) prevention or education programs provided to the community; and
1188.26 	(iv) treatment for clients with primary diagnoses of alcohol or other drug abuse.

1188.27 	Sec. 26. Minnesota Statutes 2022, section 256B.0947, subdivision 5, is amended to read:
1188.28 		Subd. 5.Standards for intensive nonresidential rehabilitative providers. (a) Services 
1188.29 	must meet the standards in this section and chapter 245I as required in section 245I.011, 
1188.30 	subdivision 5.
1189.1 	(b) The treatment team must have specialized training in providing services to the specific 
1189.2 	age group of youth that the team serves. An individual treatment team must serve youth 
1189.3 	who are: (1) at least eight years of age or older and under 16 years of age, or (2) at least 14 
1189.4 	years of age or older and under 21 years of age.
1189.5 	(c) The treatment team for intensive nonresidential rehabilitative mental health services 
1189.6 	comprises both permanently employed core team members and client-specific team members 
1189.7 	as follows:
1189.8 	(1) Based on professional qualifications and client needs, clinically qualified core team 
1189.9 	members are assigned on a rotating basis as the client's lead worker to coordinate a client's 
1189.10 	care. The core team must comprise at least four full-time equivalent direct care staff and 
1189.11 	must minimally include:
1189.12 	(i) a mental health professional who serves as team leader to provide administrative 
1189.13 	direction and treatment supervision to the team;
1189.14 	(ii) an advanced-practice registered nurse with certification in psychiatric or mental 
1189.15 	health care or a board-certified child and adolescent psychiatrist, either of which must be 
1189.16 	credentialed to prescribe medications;
1189.17 	(iii) a licensed alcohol and drug counselor who is also trained in mental health 
1189.18 	interventions; and
1189.19 	(iv)(iii) a mental health certified peer specialist who is qualified according to section 
1189.20 	245I.04, subdivision 10, and is also a former children's mental health consumer.; and
1189.21 	(iv) a co-occurring disorder specialist who meets the requirements under section 
1189.22 	256B.0622, subdivision 7a, paragraph (a), clause (4), who will provide or facilitate the 
1189.23 	provision of co-occurring disorder treatment to clients.
1189.24 	(2) The core team may also include any of the following:
1189.25 	(i) additional mental health professionals;
1189.26 	(ii) a vocational specialist;
1189.27 	(iii) an educational specialist with knowledge and experience working with youth 
1189.28 	regarding special education requirements and goals, special education plans, and coordination 
1189.29 	of educational activities with health care activities;
1189.30 	(iv) a child and adolescent psychiatrist who may be retained on a consultant basis;
1189.31 	(v) a clinical trainee qualified according to section 245I.04, subdivision 6;
1190.1 	(vi) a mental health practitioner qualified according to section 245I.04, subdivision 4;
1190.2 	(vii) a case management service provider, as defined in section 245.4871, subdivision 
1190.3 	4;
1190.4 	(viii) a housing access specialist; and
1190.5 	(ix) a family peer specialist as defined in subdivision 2, paragraph (j).
1190.6 	(3) A treatment team may include, in addition to those in clause (1) or (2), ad hoc 
1190.7 	members not employed by the team who consult on a specific client and who must accept 
1190.8 	overall clinical direction from the treatment team for the duration of the client's placement 
1190.9 	with the treatment team and must be paid by the provider agency at the rate for a typical 
1190.10 	session by that provider with that client or at a rate negotiated with the client-specific 
1190.11 	member. Client-specific treatment team members may include:
1190.12 	(i) the mental health professional treating the client prior to placement with the treatment 
1190.13 	team;
1190.14 	(ii) the client's current substance use counselor, if applicable;
1190.15 	(iii) a lead member of the client's individualized education program team or school-based 
1190.16 	mental health provider, if applicable;
1190.17 	(iv) a representative from the client's health care home or primary care clinic, as needed 
1190.18 	to ensure integration of medical and behavioral health care;
1190.19 	(v) the client's probation officer or other juvenile justice representative, if applicable; 
1190.20 	and
1190.21 	(vi) the client's current vocational or employment counselor, if applicable.
1190.22 	(d) The treatment supervisor shall be an active member of the treatment team and shall 
1190.23 	function as a practicing clinician at least on a part-time basis. The treatment team shall meet 
1190.24 	with the treatment supervisor at least weekly to discuss recipients' progress and make rapid 
1190.25 	adjustments to meet recipients' needs. The team meeting must include client-specific case 
1190.26 	reviews and general treatment discussions among team members. Client-specific case 
1190.27 	reviews and planning must be documented in the individual client's treatment record.
1190.28 	(e) The staffing ratio must not exceed ten clients to one full-time equivalent treatment 
1190.29 	team position.
1190.30 	(f) The treatment team shall serve no more than 80 clients at any one time. Should local 
1190.31 	demand exceed the team's capacity, an additional team must be established rather than 
1190.32 	exceed this limit.
1191.1 	(g) Nonclinical staff shall have prompt access in person or by telephone to a mental 
1191.2 	health practitioner, clinical trainee, or mental health professional. The provider shall have 
1191.3 	the capacity to promptly and appropriately respond to emergent needs and make any 
1191.4 	necessary staffing adjustments to ensure the health and safety of clients.
1191.5 	(h) The intensive nonresidential rehabilitative mental health services provider shall 
1191.6 	participate in evaluation of the assertive community treatment for youth (Youth ACT) model 
1191.7 	as conducted by the commissioner, including the collection and reporting of data and the 
1191.8 	reporting of performance measures as specified by contract with the commissioner.
1191.9 	(i) A regional treatment team may serve multiple counties.

1191.10 	Sec. 27. Minnesota Statutes 2022, section 256B.76, subdivision 6, is amended to read:
1191.11 		Subd. 6.Medicare relative value units.  (a) Effective for services rendered on or after 
1191.12 	January 1, 2007, the commissioner shall make payments for physician and professional 
1191.13 	services based on the Medicare relative value units (RVU's) (RVUs). This change shall be 
1191.14 	budget neutral and the cost of implementing RVU's RVUs will be incorporated in the 
1191.15 	established conversion factor.
1191.16 	(b) Effective for services rendered on or after January 1, 2025, rates for mental health 
1191.17 	services reimbursed under the resource-based relative value scale (RBRVS) must be equal 
1191.18 	to 83 percent of the Medicare Physician Fee Schedule.
1191.19 	(c) Effective for services rendered on or after January 1, 2025, the commissioner shall 
1191.20 	increase capitation payments made to managed care plans and county-based purchasing 
1191.21 	plans to reflect the rate increases provided under this subdivision. Managed care plans and 
1191.22 	county-based purchasing plans must use the capitation rate increase provided under this 
1191.23 	paragraph to increase payment rates to the providers corresponding to the rate increases. 
1191.24 	The commissioner must monitor the effect of this rate increase on enrollee access to services 
1191.25 	under this subdivision. If for any contract year federal approval is not received for this 
1191.26 	paragraph, the commissioner must adjust the capitation rates paid to managed care plans 
1191.27 	and county-based purchasing plans for that contract year to reflect the removal of this 
1191.28 	paragraph. Contracts between managed care plans and county-based purchasing plans and 
1191.29 	providers to whom this paragraph applies must allow recovery of payments from those 
1191.30 	providers if capitation rates are adjusted in accordance with this paragraph. Payment 
1191.31 	recoveries must not exceed the amount equal to any increase in rates that results from this 
1191.32 	paragraph.

1192.1 	EFFECTIVE DATE. This section is effective January 1, 2025, or upon federal approval, 
1192.2 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
1192.3 	when federal approval is obtained.

1192.4 	Sec. 28. Laws 2023, chapter 70, article 1, section 35, is amended to read:
1192.5 	Sec. 35. Minnesota Statutes 2022, section 256B.761, is amended to read:
1192.6 	256B.761 REIMBURSEMENT FOR MENTAL HEALTH SERVICES.
1192.7 	(a) Effective for services rendered on or after July 1, 2001, payment for medication 
1192.8 	management provided to psychiatric patients, outpatient mental health services, day treatment 
1192.9 	services, home-based mental health services, and family community support services shall 
1192.10 	be paid at the lower of (1) submitted charges, or (2) 75.6 percent of the 50th percentile of 
1192.11 	1999 charges.
1192.12 	(b) Effective July 1, 2001, the medical assistance rates for outpatient mental health 
1192.13 	services provided by an entity that operates: (1) a Medicare-certified comprehensive 
1192.14 	outpatient rehabilitation facility; and (2) a facility that was certified prior to January 1, 1993, 
1192.15 	with at least 33 percent of the clients receiving rehabilitation services in the most recent 
1192.16 	calendar year who are medical assistance recipients, will be increased by 38 percent, when 
1192.17 	those services are provided within the comprehensive outpatient rehabilitation facility and 
1192.18 	provided to residents of nursing facilities owned by the entity.
1192.19 	(c) In addition to rate increases otherwise provided, the commissioner may restructure 
1192.20 	coverage policy and rates to improve access to adult rehabilitative mental health services 
1192.21 	under section 256B.0623 and related mental health support services under section 256B.021, 
1192.22 	subdivision 4, paragraph (f), clause (2). For state fiscal years 2015 and 2016, the projected 
1192.23 	state share of increased costs due to this paragraph is transferred from adult mental health 
1192.24 	grants under sections 245.4661 and 256E.12. The transfer for fiscal year 2016 is a permanent 
1192.25 	base adjustment for subsequent fiscal years. Payments made to managed care plans and 
1192.26 	county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall reflect 
1192.27 	the rate changes described in this paragraph.
1192.28 	(d) Any ratables effective before July 1, 2015, do not apply to early intensive 
1192.29 	developmental and behavioral intervention (EIDBI) benefits described in section 256B.0949.
1192.30 	(e) Effective for services rendered on or after January 1, 2024, payment rates for 
1192.31 	behavioral health services included in the rate analysis required by Laws 2021, First Special 
1192.32 	Session chapter 7, article 17, section 18, except for adult day treatment services under section 
1193.1 	256B.0671, subdivision 3; early intensive developmental and behavioral intervention services 
1193.2 	under section 256B.0949; and substance use disorder services under chapter 254B, must be 
1193.3 	increased by three percent from the rates in effect on December 31, 2023. Effective for 
1193.4 	services rendered on or after January 1, 2025, payment rates for behavioral health services 
1193.5 	included in the rate analysis required by Laws 2021, First Special Session chapter 7, article 
1193.6 	17, section 18, except for adult day treatment services under section 256B.0671, subdivision 
1193.7 	3; early intensive developmental behavioral intervention services under section 256B.0949; 
1193.8 	and substance use disorder services under chapter 254B, must be annually adjusted according 
1193.9 	to the change from the midpoint of the previous rate year to the midpoint of the rate year 
1193.10 	for which the rate is being determined using the Centers for Medicare and Medicaid Services 
1193.11 	Medicare Economic Index as forecasted in the fourth quarter of the calendar year before 
1193.12 	the rate year. For payments made in accordance with this paragraph, if and to the extent 
1193.13 	that the commissioner identifies that the state has received federal financial participation 
1193.14 	for behavioral health services in excess of the amount allowed under United States Code, 
1193.15 	title 42, section 447.321, the state shall repay the excess amount to the Centers for Medicare 
1193.16 	and Medicaid Services with state money and maintain the full payment rate under this 
1193.17 	paragraph. This paragraph does not apply to federally qualified health centers, rural health 
1193.18 	centers, Indian health services, certified community behavioral health clinics, cost-based 
1193.19 	rates, and rates that are negotiated with the county. This paragraph expires upon legislative 
1193.20 	implementation of the new rate methodology resulting from the rate analysis required by 
1193.21 	Laws 2021, First Special Session chapter 7, article 17, section 18.
1193.22 	(f) Effective January 1, 2024, the commissioner shall increase capitation payments made 
1193.23 	to managed care plans and county-based purchasing plans to reflect the behavioral health 
1193.24 	service rate increase provided in paragraph (e). Managed care and county-based purchasing 
1193.25 	plans must use the capitation rate increase provided under this paragraph to increase payment 
1193.26 	rates to behavioral health services providers. The commissioner must monitor the effect of 
1193.27 	this rate increase on enrollee access to behavioral health services. If for any contract year 
1193.28 	federal approval is not received for this paragraph, the commissioner must adjust the 
1193.29 	capitation rates paid to managed care plans and county-based purchasing plans for that 
1193.30 	contract year to reflect the removal of this provision. Contracts between managed care plans 
1193.31 	and county-based purchasing plans and providers to whom this paragraph applies must 
1193.32 	allow recovery of payments from those providers if capitation rates are adjusted in accordance 
1193.33 	with this paragraph. Payment recoveries must not exceed the amount equal to any increase 
1193.34 	in rates that results from this provision.

1194.1 	EFFECTIVE DATE. This section is effective January 1, 2025, or upon federal approval, 
1194.2 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
1194.3 	when federal approval is obtained.

1194.4 	Sec. 29. FIRST EPISODE PSYCHOSIS COORDINATED SPECIALITY CARE 
1194.5 	MEDICAL ASSISTANCE BENEFIT.
 1194.6 	(a) The commissioner of human services must develop a First Episode Psychosis 
1194.7 	Coordinated Specialty Care (FEP-CSC) medical assistance benefit.
1194.8 	(b) The benefit must cover medically necessary treatment. Services must include:
1194.9 	(1) assertive outreach and engagement strategies encouraging individuals' involvement;
1194.10 	(2) person-centered care, delivered in the home and community, extending beyond 
1194.11 	typical hours of operation, such as evenings and weekends;
1194.12 	(3) crisis planning and intervention;
1194.13 	(4) team leadership from a mental health professional who provides ongoing consultation 
1194.14 	to the team members, coordinates admission screening, and leads the weekly team meetings 
1194.15 	to facilitate case review and entry to the program;
1194.16 	(5) employment and education services that enable individuals to function in workplace 
1194.17 	and educational settings that support individual preferences;
1194.18 	(6) family education and support that builds on an individual's identified family and 
1194.19 	natural support systems;
1194.20 	(7) individual and group psychotherapy that include but are not limited to cognitive 
1194.21 	behavioral therapies;
1194.22 	(8) care coordination services in clinic, community, and home settings to assist individuals 
1194.23 	with practical problem solving, such as securing transportation, addressing housing and 
1194.24 	other basic needs, managing money, obtaining medical care, and coordinating care with 
1194.25 	other providers; and
1194.26 	(9) pharmacotherapy, medication management, and primary care coordination provided 
1194.27 	by a mental health professional who is permitted to prescribe psychiatric medications.
1194.28 	(c) An eligible recipient is an individual who:
1194.29 	(1) is between the ages of 15 and 40;
1194.30 	(2) is experiencing early signs of psychosis with the duration of onset being less than 
1194.31 	two years; and
1195.1 	(3) has been on antipsychotic medications for less than a total of 12 months.
1195.2 	(d) By December 1, 2026, the commissioner must submit a report to the chairs and 
1195.3 	ranking minority members of the legislative committees with jurisdiction over human 
1195.4 	services policy and finance. The report must include:
1195.5 	(1) an overview of the recommended benefit;
1195.6 	(2) eligibility requirements;
1195.7 	(3) program standards;
1195.8 	(4) a reimbursement methodology that covers team-based bundled costs;
1195.9 	(5) performance evaluation criteria for programs; and
1195.10 	(6) draft legislation with the statutory changes necessary to implement the benefit.

1195.11 	EFFECTIVE DATE. This section is effective July 1, 2024.

1195.12 	Sec. 30. MEDICAL ASSISTANCE CHILDREN'S RESIDENTIAL MENTAL 
1195.13 	HEALTH CRISIS STABILIZATION.
 1195.14 	(a) The commissioner of human services must consult with providers, advocates, Tribal 
1195.15 	Nations, counties, people with lived experience as or with a child in a mental health crisis, 
1195.16 	and other interested community members to develop a covered benefit under medical 
1195.17 	assistance to provide residential mental health crisis stabilization for children. The benefit 
1195.18 	must:
1195.19 	(1) consist of evidence-based promising practices, or culturally responsive treatment 
1195.20 	services for children under the age of 21 experiencing a mental health crisis;
1195.21 	(2) embody an integrative care model that supports individuals experiencing a mental 
1195.22 	health crisis who may also be experiencing co-occurring conditions;
1195.23 	(3) qualify for federal financial participation; and
1195.24 	(4) include services that support children and families, including but not limited to:
1195.25 	(i) an assessment of the child's immediate needs and factors that led to the mental health 
1195.26 	crisis;
1195.27 	(ii) individualized care to address immediate needs and restore the child to a precrisis 
1195.28 	level of functioning;
1195.29 	(iii) 24-hour on-site staff and assistance;
1195.30 	(iv) supportive counseling and clinical services;
1196.1 	(v) skills training and positive support services, as identified in the child's individual 
1196.2 	crisis stabilization plan;
1196.3 	(vi) referrals to other service providers in the community as needed and to support the 
1196.4 	child's transition from residential crisis stabilization services;
1196.5 	(vii) development of an individualized and culturally responsive crisis response action 
1196.6 	plan; and
1196.7 	(viii) assistance to access and store medication.
1196.8 	(b) When developing the new benefit, the commissioner must make recommendations 
1196.9 	for providers to be reimbursed for room and board.
1196.10 	(c) The commissioner must consult with or contract with rate-setting experts to develop 
1196.11 	a prospective data-based rate methodology for the children's residential mental health crisis 
1196.12 	stabilization benefit.
1196.13 	(d) No later than October 1, 2025, the commissioner must submit to the chairs and 
1196.14 	ranking minority members of the legislative committees with jurisdiction over human 
1196.15 	services policy and finance a report detailing the children's residential mental health crisis 
1196.16 	stabilization benefit and must include:
1196.17 	(1) eligibility criteria, clinical and service requirements, provider standards, licensing 
1196.18 	requirements, and reimbursement rates;
1196.19 	(2) the process for community engagement, community input, and crisis models studied 
1196.20 	in other states;
1196.21 	(3) a deadline for the commissioner to submit a state plan amendment to the Centers for 
1196.22 	Medicare and Medicaid Services; and
1196.23 	(4) draft legislation with the statutory changes necessary to implement the benefit.

1196.24 	EFFECTIVE DATE. This section is effective July 1, 2024.

1196.25 	Sec. 31. MEDICAL ASSISTANCE CLUBHOUSE BENEFIT ANALYSIS.
 1196.26 	The commissioner of human services must conduct an analysis to identify existing or 
1196.27 	pending Medicaid Clubhouse benefits in other states, federal authorities used, populations 
1196.28 	served, service and reimbursement design, and accreditation standards. By December 1, 
1196.29 	2025, the commissioner must submit a report to the chairs and ranking minority members 
1196.30 	of the legislative committees with jurisdiction over health and human services finance and 
1197.1 	policy. The report must include a comparative analysis of Medicaid Clubhouse programs 
1197.2 	and recommendations for designing a medical assistance benefit in Minnesota.

1197.3 	Sec. 32. DIRECTION TO COMMISSIONER OF HUMAN SERVICES; MENTAL 
1197.4 	HEALTH PROCEDURE CODES.
 1197.5 	The commissioner of human services must develop recommendations, in consultation 
1197.6 	with external partners and medical coding and compliance experts, on simplifying mental 
1197.7 	health procedure codes and the feasibility of converting mental health procedure codes to 
1197.8 	the current procedural terminology (CPT) code structure. By October 1, 2025, the 
1197.9 	commissioner must submit a report to the chairs and ranking minority members of the 
1197.10 	legislative committees with jurisdiction over mental health on the recommendations and 
1197.11 	methodology to simplify and restructure mental health procedure codes with corresponding 
1197.12 	resource-based relative value scale (RBRVS) values.

1197.13 	EFFECTIVE DATE. This section is effective July 1, 2024.

1197.14 	Sec. 33. MENTAL HEALTH SERVICES FORMULA-BASED ALLOCATION.
 1197.15 	The commissioner of human services shall consult with the commissioner of management 
1197.16 	and budget, counties, Tribes, mental health providers, and advocacy organizations to develop 
1197.17 	recommendations for moving from the children's and adult mental health grant funding 
1197.18 	structure to a formula-based allocation structure for mental health services. The 
1197.19 	recommendations must consider formula-based allocations for grants for respite care, 
1197.20 	school-linked behavioral health, mobile crisis teams, and first episode of psychosis programs.

1197.21 	Sec. 34. REVISOR INSTRUCTION.
 1197.22 	The revisor of statutes, in consultation with the Office of Senate Counsel, Research and 
1197.23 	Fiscal Analysis; the House Research Department; and the commissioner of human services 
1197.24 	shall prepare legislation for the 2025 legislative session to recodify Minnesota Statutes, 
1197.25 	section 256B.0622, to move provisions related to assertive community treatment and intensive 
1197.26 	residential treatment services into separate sections of statute. The revisor shall correct any 
1197.27 	cross-references made necessary by this recodification.

1198.1 	ARTICLE 62
1198.2 	DEPARTMENT OF HUMAN SERVICES POLICY

1198.3 	Section 1. Minnesota Statutes 2023 Supplement, section 245A.03, subdivision 2, as 
1198.4 	amended by Laws 2024, chapter 85, section 52, and Laws 2024, chapter 80, article 2, section 
1198.5 	35, is amended to read:
1198.6 		Subd. 2.Exclusion from licensure. (a) This chapter does not apply to:
1198.7 	(1) residential or nonresidential programs that are provided to a person by an individual 
1198.8 	who is related;
1198.9 	(2) nonresidential programs that are provided by an unrelated individual to persons from 
1198.10 	a single related family;
1198.11 	(3) residential or nonresidential programs that are provided to adults who do not misuse 
1198.12 	substances or have a substance use disorder, a mental illness, a developmental disability, a 
1198.13 	functional impairment, or a physical disability;
1198.14 	(4) sheltered workshops or work activity programs that are certified by the commissioner 
1198.15 	of employment and economic development;
1198.16 	(5) programs operated by a public school for children 33 months or older;
1198.17 	(6) nonresidential programs primarily for children that provide care or supervision for 
1198.18 	periods of less than three hours a day while the child's parent or legal guardian is in the 
1198.19 	same building as the nonresidential program or present within another building that is 
1198.20 	directly contiguous to the building in which the nonresidential program is located;
1198.21 	(7) nursing homes or hospitals licensed by the commissioner of health except as specified 
1198.22 	under section 245A.02;
1198.23 	(8) board and lodge facilities licensed by the commissioner of health that do not provide 
1198.24 	children's residential services under Minnesota Rules, chapter 2960, mental health or 
1198.25 	substance use disorder treatment;
1198.26 	(9) programs licensed by the commissioner of corrections;
1198.27 	(10) recreation programs for children or adults that are operated or approved by a park 
1198.28 	and recreation board whose primary purpose is to provide social and recreational activities;
1198.29 	(11) noncertified boarding care homes unless they provide services for five or more 
1198.30 	persons whose primary diagnosis is mental illness or a developmental disability;
1199.1 	(12) programs for children such as scouting, boys clubs, girls clubs, and sports and art 
1199.2 	programs, and nonresidential programs for children provided for a cumulative total of less 
1199.3 	than 30 days in any 12-month period;
1199.4 	(13) residential programs for persons with mental illness, that are located in hospitals;
1199.5 	(14) camps licensed by the commissioner of health under Minnesota Rules, chapter 
1199.6 	4630;
1199.7 	(15) mental health outpatient services for adults with mental illness or children with 
1199.8 	emotional disturbance;
1199.9 	(16) residential programs serving school-age children whose sole purpose is cultural or 
1199.10 	educational exchange, until the commissioner adopts appropriate rules;
1199.11 	(17) community support services programs as defined in section 245.462, subdivision 
1199.12 	6, and family community support services as defined in section 245.4871, subdivision 17;
1199.13 	(18) settings registered under chapter 144D which provide home care services licensed 
1199.14 	by the commissioner of health to fewer than seven adults assisted living facilities licensed 
1199.15 	by the commissioner of health under chapter 144G;
1199.16 	(19) substance use disorder treatment activities of licensed professionals in private 
1199.17 	practice as defined in section 245G.01, subdivision 17;
1199.18 	(20) consumer-directed community support service funded under the Medicaid waiver 
1199.19 	for persons with developmental disabilities when the individual who provided the service 
1199.20 	is:
1199.21 	(i) the same individual who is the direct payee of these specific waiver funds or paid by 
1199.22 	a fiscal agent, fiscal intermediary, or employer of record; and
1199.23 	(ii) not otherwise under the control of a residential or nonresidential program that is 
1199.24 	required to be licensed under this chapter when providing the service;
1199.25 	(21) a county that is an eligible vendor under section 254B.05 to provide care coordination 
1199.26 	and comprehensive assessment services;
1199.27 	(22) a recovery community organization that is an eligible vendor under section 254B.05 
1199.28 	to provide peer recovery support services; or
1199.29 	(23) programs licensed by the commissioner of children, youth, and families in chapter 
1199.30 	142B.
1200.1 	(b) For purposes of paragraph (a), clause (6), a building is directly contiguous to a 
1200.2 	building in which a nonresidential program is located if it shares a common wall with the 
1200.3 	building in which the nonresidential program is located or is attached to that building by 
1200.4 	skyway, tunnel, atrium, or common roof.
1200.5 	(b) (c) Except for the home and community-based services identified in section 245D.03, 
1200.6 	subdivision 1, nothing in this chapter shall be construed to require licensure for any services 
1200.7 	provided and funded according to an approved federal waiver plan where licensure is 
1200.8 	specifically identified as not being a condition for the services and funding.

1200.9 	Sec. 3. Minnesota Statutes 2022, section 245A.04, is amended by adding a subdivision to 
1200.10 	read:
1200.11 		Subd. 7b.Notification to commissioner of changes in key staff positions; children's 
1200.12 	residential facilities and detoxification programs. (a) A license holder must notify the 
1200.13 	commissioner within five business days of a change or vacancy in a key staff position under 
1200.14 	paragraph (b) or (c). The license holder must notify the commissioner of the staffing change 
1200.15 	on a form approved by the commissioner and include the name of the staff person now 
1200.16 	assigned to the key staff position and the staff person's qualifications for the position. The 
1200.17 	license holder must notify the program licensor of a vacancy to discuss how the duties of 
1200.18 	the key staff position will be fulfilled during the vacancy.
1200.19 	(b) The key staff position for a children's residential facility licensed according to 
1200.20 	Minnesota Rules, parts 2960.0130 to 2960.0220, is a program director; and
1200.21 	(c) The key staff positions for a detoxification program licensed according to Minnesota 
1200.22 	Rules, parts 9530.6510 to 9530.6590, are:
1200.23 	(1) a program director as required by Minnesota Rules, part 9530.6560, subpart 1;
1200.24 	(2) a registered nurse as required by Minnesota Rules, part 9530.6560, subpart 4; and
1200.25 	(3) a medical director as required by Minnesota Rules, part 9530.6560, subpart 5.

1200.26 	EFFECTIVE DATE. This section is effective January 1, 2025.

1200.27 	Sec. 2. Minnesota Statutes 2022, section 245A.043, subdivision 2, is amended to read:
1200.28 		Subd. 2.Change in ownership. (a) If the commissioner determines that there is a change 
1200.29 	in ownership, the commissioner shall require submission of a new license application. This 
1200.30 	subdivision does not apply to a licensed program or service located in a home where the 
1200.31 	license holder resides. A change in ownership occurs when:
1201.1 	(1) except as provided in paragraph (b), the license holder sells or transfers 100 percent 
1201.2 	of the property, stock, or assets;
1201.3 	(2) the license holder merges with another organization;
1201.4 	(3) the license holder consolidates with two or more organizations, resulting in the 
1201.5 	creation of a new organization;
1201.6 	(4) there is a change to the federal tax identification number associated with the license 
1201.7 	holder; or
1201.8 	(5) except as provided in paragraph (b), all controlling individuals associated with for
1201.9 	the original application license have changed.
1201.10 	(b) Notwithstanding For changes under paragraph (a), clauses (1) and or (5), no change 
1201.11 	in ownership has occurred and a new license application is not required if at least one 
1201.12 	controlling individual has been listed affiliated as a controlling individual for the license 
1201.13 	for at least the previous 12 months immediately preceding the change.

1201.14 	EFFECTIVE DATE. This section is effective January 1, 2025.

1201.15 	Sec. 3. Minnesota Statutes 2023 Supplement, section 245A.043, subdivision 3, is amended 
1201.16 	to read:
1201.17 		Subd. 3.Standard change of ownership process. (a) When a change in ownership is 
1201.18 	proposed and the party intends to assume operation without an interruption in service longer 
1201.19 	than 60 days after acquiring the program or service, the license holder must provide the 
1201.20 	commissioner with written notice of the proposed change on a form provided by the 
1201.21 	commissioner at least 60 90 days before the anticipated date of the change in ownership. 
1201.22 	For purposes of this subdivision and subdivision 4 section, "party" means the party that 
1201.23 	intends to operate the service or program.
1201.24 	(b) The party must submit a license application under this chapter on the form and in 
1201.25 	the manner prescribed by the commissioner at least 30 90 days before the change in 
1201.26 	ownership is anticipated to be complete, and must include documentation to support the 
1201.27 	upcoming change. The party must comply with background study requirements under chapter 
1201.28 	245C and shall pay the application fee required under section 245A.10.
1201.29 	(c) A party that intends to assume operation without an interruption in service longer 
1201.30 	than 60 days after acquiring the program or service is exempt from the requirements of 
1201.31 	sections 245G.03, subdivision 2, paragraph (b), and 254B.03, subdivision 2, paragraphs (c) 
1201.32 	and (d).
1202.1 	(c) (d) The commissioner may streamline application procedures when the party is an 
1202.2 	existing license holder under this chapter and is acquiring a program licensed under this 
1202.3 	chapter or service in the same service class as one or more licensed programs or services 
1202.4 	the party operates and those licenses are in substantial compliance. For purposes of this 
1202.5 	subdivision, "substantial compliance" means within the previous 12 months the commissioner 
1202.6 	did not (1) issue a sanction under section 245A.07 against a license held by the party, or 
1202.7 	(2) make a license held by the party conditional according to section 245A.06.
1202.8 	(d) Except when a temporary change in ownership license is issued pursuant to 
1202.9 	subdivision 4 (e) While the standard change of ownership process is pending, the existing 
1202.10 	license holder is solely remains responsible for operating the program according to applicable 
1202.11 	laws and rules until a license under this chapter is issued to the party.
1202.12 	(e) (f) If a licensing inspection of the program or service was conducted within the 
1202.13 	previous 12 months and the existing license holder's license record demonstrates substantial 
1202.14 	compliance with the applicable licensing requirements, the commissioner may waive the 
1202.15 	party's inspection required by section 245A.04, subdivision 4. The party must submit to the 
1202.16 	commissioner (1) proof that the premises was inspected by a fire marshal or that the fire 
1202.17 	marshal deemed that an inspection was not warranted, and (2) proof that the premises was 
1202.18 	inspected for compliance with the building code or that no inspection was deemed warranted.
1202.19 	(f) (g) If the party is seeking a license for a program or service that has an outstanding 
1202.20 	action under section 245A.06 or 245A.07, the party must submit a letter written plan as part 
1202.21 	of the application process identifying how the party has or will come into full compliance 
1202.22 	with the licensing requirements.
1202.23 	(g) (h) The commissioner shall evaluate the party's application according to section 
1202.24 	245A.04, subdivision 6. If the commissioner determines that the party has remedied or 
1202.25 	demonstrates the ability to remedy the outstanding actions under section 245A.06 or 245A.07
1202.26 	and has determined that the program otherwise complies with all applicable laws and rules, 
1202.27 	the commissioner shall issue a license or conditional license under this chapter. A conditional 
1202.28 	license issued under this section is final and not subject to reconsideration under section 
1202.29 	245A.06, subdivision 4. The conditional license remains in effect until the commissioner 
1202.30 	determines that the grounds for the action are corrected or no longer exist.
1202.31 	(h) (i) The commissioner may deny an application as provided in section 245A.05. An 
1202.32 	applicant whose application was denied by the commissioner may appeal the denial according 
1202.33 	to section 245A.05.
1203.1 	(i) (j) This subdivision does not apply to a licensed program or service located in a home 
1203.2 	where the license holder resides.

1203.3 	EFFECTIVE DATE. This section is effective January 1, 2025.

1203.4 	Sec. 4. Minnesota Statutes 2022, section 245A.043, is amended by adding a subdivision 
1203.5 	to read:
1203.6 		Subd. 3a.Emergency change in ownership process. (a) In the event of a death of a 
1203.7 	license holder or sole controlling individual or a court order or other event that results in 
1203.8 	the license holder being inaccessible or unable to operate the program or service, a party 
1203.9 	may submit a request to the commissioner to allow the party to assume operation of the 
1203.10 	program or service under an emergency change in ownership process to ensure persons 
1203.11 	continue to receive services while the commissioner evaluates the party's license application.
1203.12 	(b) To request the emergency change of ownership process, the party must immediately:
1203.13 	(1) notify the commissioner of the event resulting in the inability of the license holder 
1203.14 	to operate the program and of the party's intent to assume operations; and
1203.15 	(2) provide the commissioner with documentation that demonstrates the party has a legal 
1203.16 	or legitimate ownership interest in the program or service if applicable and is able to operate 
1203.17 	the program or service.
1203.18 	(c) If the commissioner approves the party to continue operating the program or service 
1203.19 	under an emergency change in ownership process, the party must:
1203.20 	(1) request to be added as a controlling individual or license holder to the existing license;
1203.21 	(2) notify persons receiving services of the emergency change in ownership in a manner 
1203.22 	approved by the commissioner;
1203.23 	(3) submit an application for a new license within 30 days of approval;
1203.24 	(4) comply with the background study requirements under chapter 245C; and
1203.25 	(5) pay the application fee required under section 245A.10.
1203.26 	(d) While the emergency change of ownership process is pending, a party approved 
1203.27 	under this subdivision is responsible for operating the program under the existing license 
1203.28 	according to applicable laws and rules until a new license under this chapter is issued.
1203.29 	(e) The provisions in subdivision 3, paragraphs (c), (d), and (f) to (i) apply to this 
1203.30 	subdivision.
1204.1 	(f) Once a party is issued a new license or has decided not to seek a new license, the 
1204.2 	commissioner must close the existing license.
1204.3 	(g) This subdivision applies to any program or service licensed under this chapter.

1204.4 	EFFECTIVE DATE. This section is effective January 1, 2025.

1204.5 	Sec. 5. Minnesota Statutes 2022, section 245A.043, subdivision 4, is amended to read:
1204.6 		Subd. 4.Temporary change in ownership transitional license. (a) After receiving the 
1204.7 	party's application pursuant to subdivision 3, upon the written request of the existing license 
1204.8 	holder and the party, the commissioner may issue a temporary change in ownership license 
1204.9 	to the party while the commissioner evaluates the party's application. Until a decision is 
1204.10 	made to grant or deny a license under this chapter, the existing license holder and the party 
1204.11 	shall both be responsible for operating the program or service according to applicable laws 
1204.12 	and rules, and the sale or transfer of the existing license holder's ownership interest in the 
1204.13 	licensed program or service does not terminate the existing license.
1204.14 	(b) The commissioner may issue a temporary change in ownership license when a license 
1204.15 	holder's death, divorce, or other event affects the ownership of the program and an applicant 
1204.16 	seeks to assume operation of the program or service to ensure continuity of the program or 
1204.17 	service while a license application is evaluated.
1204.18 	(c) This subdivision applies to any program or service licensed under this chapter.
1204.19 	If a party's application under subdivision 2 is for a satellite license for a community 
1204.20 	residential setting under section 245D.23 or day services facility under 245D.27 and if the 
1204.21 	party already holds an active license to provide services under chapter 245D, the 
1204.22 	commissioner may issue a temporary transitional license to the party for the community 
1204.23 	residential setting or day services facility while the commissioner evaluates the party's 
1204.24 	application. Until a decision is made to grant or deny a community residential setting or 
1204.25 	day services facility satellite license, the party must be solely responsible for operating the 
1204.26 	program according to applicable laws and rules, and the existing license must be closed. 
1204.27 	The temporary transitional license expires after 12 months from the date it was issued or 
1204.28 	upon issuance of the community residential setting or day services facility satellite license, 
1204.29 	whichever occurs first.

1204.30 	EFFECTIVE DATE. This section is effective January 1, 2025.

1205.1 	Sec. 6. Minnesota Statutes 2022, section 245A.043, is amended by adding a subdivision 
1205.2 	to read:
1205.3 		Subd. 5.Failure to comply. If the commissioner finds that the applicant or license holder 
1205.4 	has not fully complied with this section, the commissioner may impose a licensing sanction 
1205.5 	under section 245A.05, 245A.06, or 245A.07.

1205.6 	EFFECTIVE DATE. This section is effective January 1, 2025.

1205.7 	Sec. 7. Minnesota Statutes 2023 Supplement, section 245A.07, subdivision 1, as amended 
1205.8 	by Laws 2024, chapter 80, article 2, section 44, is amended to read:
1205.9 		Subdivision 1.Sanctions; appeals; license. (a) In addition to making a license conditional 
1205.10 	under section 245A.06, the commissioner may suspend or revoke the license, impose a fine, 
1205.11 	or secure an injunction against the continuing operation of the program of a license holder 
1205.12 	who does not comply with applicable law or rule.
1205.13 	When applying sanctions authorized under this section, the commissioner shall consider 
1205.14 	the nature, chronicity, or severity of the violation of law or rule and the effect of the violation 
1205.15 	on the health, safety, or rights of persons served by the program.
1205.16 	(b) If a license holder appeals the suspension or revocation of a license and the license 
1205.17 	holder continues to operate the program pending a final order on the appeal, the commissioner 
1205.18 	shall issue the license holder a temporary provisional license. The commissioner may include 
1205.19 	terms the license holder must follow pending a final order on the appeal.Unless otherwise 
1205.20 	specified by the commissioner, variances in effect on the date of the license sanction under 
1205.21 	appeal continue under the temporary provisional license. If a license holder fails to comply 
1205.22 	with applicable law or rule while operating under a temporary provisional license, the 
1205.23 	commissioner may impose additional sanctions under this section and section 245A.06, and 
1205.24 	may terminate any prior variance. If a temporary provisional license is set to expire, a new 
1205.25 	temporary provisional license shall be issued to the license holder upon payment of any fee 
1205.26 	required under section 245A.10. The temporary provisional license shall expire on the date 
1205.27 	the final order is issued. If the license holder prevails on the appeal, a new nonprovisional 
1205.28 	license shall be issued for the remainder of the current license period.
1205.29 	(c) If a license holder is under investigation and the license issued under this chapter is 
1205.30 	due to expire before completion of the investigation, the program shall be issued a new 
1205.31 	license upon completion of the reapplication requirements and payment of any applicable 
1205.32 	license fee. Upon completion of the investigation, a licensing sanction may be imposed 
1205.33 	against the new license under this section, section 245A.06, or 245A.08.
1206.1 	(d) Failure to reapply or closure of a license issued under this chapter by the license 
1206.2 	holder prior to the completion of any investigation shall not preclude the commissioner 
1206.3 	from issuing a licensing sanction under this section or section 245A.06 at the conclusion 
1206.4 	of the investigation.

1206.5 	EFFECTIVE DATE. This section is effective January 1, 2025.

1206.6 	Sec. 8. Minnesota Statutes 2022, section 245A.07, subdivision 6, is amended to read:
1206.7 		Subd. 6.Appeal of multiple sanctions. (a) When the license holder appeals more than 
1206.8 	one licensing action or sanction that were simultaneously issued by the commissioner, the 
1206.9 	license holder shall specify the actions or sanctions that are being appealed.
1206.10 	(b) If there are different timelines prescribed in statutes for the licensing actions or 
1206.11 	sanctions being appealed, the license holder must submit the appeal within the longest of 
1206.12 	those timelines specified in statutes.
1206.13 	(c) The appeal must be made in writing by certified mail or, by personal service, or 
1206.14 	through the provider licensing and reporting hub. If mailed, the appeal must be postmarked 
1206.15 	and sent to the commissioner within the prescribed timeline with the first day beginning 
1206.16 	the day after the license holder receives the certified letter. If a request is made by personal 
1206.17 	service, it must be received by the commissioner within the prescribed timeline with the 
1206.18 	first day beginning the day after the license holder receives the certified letter. If the appeal 
1206.19 	is made through the provider licensing and reporting hub, it must be received by the 
1206.20 	commissioner within the prescribed timeline with the first day beginning the day after the 
1206.21 	commissioner issued the order through the hub.
1206.22 	(d) When there are different timelines prescribed in statutes for the appeal of licensing 
1206.23 	actions or sanctions simultaneously issued by the commissioner, the commissioner shall 
1206.24 	specify in the notice to the license holder the timeline for appeal as specified under paragraph 
1206.25 	(b).

1206.26 	Sec. 9. Minnesota Statutes 2023 Supplement, section 245A.11, subdivision 7, is amended 
1206.27 	to read:
1206.28 		Subd. 7.Adult foster care and community residential setting; variance for alternate 
1206.29 	overnight supervision. (a) The commissioner may grant a variance under section 245A.04, 
1206.30 	subdivision 9, to statute or rule parts requiring a caregiver to be present in an adult foster 
1206.31 	care home or a community residential setting during normal sleeping hours to allow for 
1206.32 	alternative methods of overnight supervision. The commissioner may grant the variance if 
1207.1 	the local county licensing agency recommends the variance and the county recommendation 
1207.2 	includes documentation verifying that:
1207.3 	(1) the county has approved the license holder's plan for alternative methods of providing 
1207.4 	overnight supervision and determined the plan protects the residents' health, safety, and 
1207.5 	rights;
1207.6 	(2) the license holder has obtained written and signed informed consent from each 
1207.7 	resident or each resident's legal representative documenting the resident's or legal 
1207.8 	representative's agreement with the alternative method of overnight supervision; and
1207.9 	(3) the alternative method of providing overnight supervision, which may include the 
1207.10 	use of technology, is specified for each resident in the resident's: (i) individualized plan of 
1207.11 	care; (ii) individual service support plan under section 256B.092, subdivision 1b, if required; 
1207.12 	or (iii) individual resident placement agreement under Minnesota Rules, part 9555.5105, 
1207.13 	subpart 19, if required.
1207.14 	(b) To be eligible for a variance under paragraph (a), the adult foster care or community 
1207.15 	residential setting license holder must not have had a conditional license issued under section 
1207.16 	245A.06, or any other licensing sanction issued under section 245A.07 during the prior 24 
1207.17 	months based on failure to provide adequate supervision, health care services, or resident 
1207.18 	safety in the adult foster care home or a community residential setting.
1207.19 	(c) A license holder requesting a variance under this subdivision to utilize technology 
1207.20 	as a component of a plan for alternative overnight supervision may request the commissioner's 
1207.21 	review in the absence of a county recommendation. Upon receipt of such a request from a 
1207.22 	license holder, the commissioner shall review the variance request with the county.
1207.23 	(d) The variance requirements under this subdivision for alternative overnight supervision 
1207.24 	do not apply to community residential settings licensed under chapter 245D.

1207.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

1207.26 	Sec. 10. Minnesota Statutes 2023 Supplement, section 245A.16, subdivision 1, as amended 
1207.27 	by Laws 2024, chapter 80, article 2, section 65, is amended to read:
1207.28 		Subdivision 1.Delegation of authority to agencies. (a) County agencies that have been 
1207.29 	designated by the commissioner to perform licensing functions and activities under section 
1207.30 	245A.04; to recommend denial of applicants under section 245A.05; to issue correction 
1207.31 	orders, to issue variances, and recommend a conditional license under section 245A.06; or 
1207.32 	to recommend suspending or revoking a license or issuing a fine under section 245A.07, 
1207.33 	shall comply with rules and directives of the commissioner governing those functions and 
1208.1 	with this section. The following variances are excluded from the delegation of variance 
1208.2 	authority and may be issued only by the commissioner:
1208.3 	(1) dual licensure of family child foster care and family adult foster care, dual licensure 
1208.4 	of child foster residence setting and community residential setting, and dual licensure of 
1208.5 	family adult foster care and family child care;
1208.6 	(2) adult foster care or community residential settingmaximum capacity;
1208.7 	(3) adult foster care or community residential settingminimum age requirement;
1208.8 	(4) child foster care maximum age requirement;
1208.9 	(5) variances regarding disqualified individuals;
1208.10 	(6) the required presence of a caregiver in the adult foster care residence during normal 
1208.11 	sleeping hours;
1208.12 	(7) variances to requirements relating to chemical use problems of a license holder or a 
1208.13 	household member of a license holder; and
1208.14 	(8) variances to section 142B.46 for the use of a cradleboard for a cultural 
1208.15 	accommodation.
1208.16 	(b) For family adult day services programs, the commissioner may authorize licensing 
1208.17 	reviews every two years after a licensee has had at least one annual review.
1208.18 	(c) A license issued under this section may be issued for up to two years.
1208.19 	(d) During implementation of chapter 245D, the commissioner shall consider:
1208.20 	(1) the role of counties in quality assurance;
1208.21 	(2) the duties of county licensing staff; and
1208.22 	(3) the possible use of joint powers agreements, according to section 471.59, with counties 
1208.23 	through which some licensing duties under chapter 245D may be delegated by the 
1208.24 	commissioner to the counties.
1208.25 	Any consideration related to this paragraph must meet all of the requirements of the corrective 
1208.26 	action plan ordered by the federal Centers for Medicare and Medicaid Services.
1208.27 	(e) Licensing authority specific to section 245D.06, subdivisions 5, 6, 7, and 8, or 
1208.28 	successor provisions; and section 245D.061 or successor provisions, for family child foster 
1208.29 	care programs providing out-of-home respite, as identified in section 245D.03, subdivision 
1208.30 	1, paragraph (b), clause (1), is excluded from the delegation of authority to county agencies.

1209.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

1209.2 	Sec. 11. Minnesota Statutes 2023 Supplement, section 245A.211, subdivision 4, is amended 
1209.3 	to read:
1209.4 		Subd. 4.Contraindicated physical restraints. A license or certification holder must 
1209.5 	not implement a restraint on a person receiving services in a program in a way that is 
1209.6 	contraindicated for any of the person's known medical or psychological conditions. Prior 
1209.7 	to using restraints on a person, the license or certification holder must assess and document 
1209.8 	a determination of any with a known medical or psychological conditions that restraints are 
1209.9 	contraindicated for, the license or certification holder must document the contraindication
1209.10 	and the type of restraints that will not be used on the person based on this determination.

1209.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

1209.12 	Sec. 12. Minnesota Statutes 2023 Supplement, section 245A.242, subdivision 2, is amended 
1209.13 	to read:
1209.14 		Subd. 2.Emergency overdose treatment. (a) A license holder must maintain a supply 
1209.15 	of opiate antagonists as defined in section 604A.04, subdivision 1, available for emergency 
1209.16 	treatment of opioid overdose and must have a written standing order protocol by a physician 
1209.17 	who is licensed under chapter 147, advanced practice registered nurse who is licensed under 
1209.18 	chapter 148, or physician assistant who is licensed under chapter 147A, that permits the 
1209.19 	license holder to maintain a supply of opiate antagonists on site. A license holder must 
1209.20 	require staff to undergo training in the specific mode of administration used at the program, 
1209.21 	which may include intranasal administration, intramuscular injection, or both.
1209.22 	(b) Notwithstanding any requirements to the contrary in Minnesota Rules, chapters 2960 
1209.23 	and 9530, and Minnesota Statutes, chapters 245F, 245G, and 245I:
1209.24 	(1) emergency opiate antagonist medications are not required to be stored in a locked 
1209.25 	area and staff and adult clients may carry this medication on them and store it in an unlocked 
1209.26 	location;
1209.27 	(2) staff persons who only administer emergency opiate antagonist medications only 
1209.28 	require the training required by paragraph (a), which any knowledgeable trainer may provide. 
1209.29 	The trainer is not required to be a registered nurse or part of an accredited educational 
1209.30 	institution; and
1209.31 	(3) nonresidential substance use disorder treatment programs that do not administer 
1209.32 	client medications beyond emergency opiate antagonist medications are not required to 
1210.1 	have the policies and procedures required in section 245G.08, subdivisions 5 and 6, and 
1210.2 	must instead describe the program's procedures for administering opiate antagonist 
1210.3 	medications in the license holder's description of health care services under section 245G.08, 
1210.4 	subdivision 1.

1210.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

1210.6 	Sec. 13. Minnesota Statutes 2023 Supplement, section 245C.02, subdivision 13e, is 
1210.7 	amended to read:
1210.8 		Subd. 13e.NETStudy 2.0. (a) "NETStudy 2.0" means the commissioner's system that 
1210.9 	replaces both NETStudy and the department's internal background study processing system. 
1210.10 	NETStudy 2.0 is designed to enhance protection of children and vulnerable adults by 
1210.11 	improving the accuracy of background studies through fingerprint-based criminal record 
1210.12 	checks and expanding the background studies to include a review of information from the 
1210.13 	Minnesota Court Information System and the national crime information database. NETStudy 
1210.14 	2.0 is also designed to increase efficiencies in and the speed of the hiring process by:
1210.15 	(1) providing access to and updates from public web-based data related to employment 
1210.16 	eligibility;
1210.17 	(2) decreasing the need for repeat studies through electronic updates of background 
1210.18 	study subjects' criminal records;
1210.19 	(3) supporting identity verification using subjects' Social Security numbers and 
1210.20 	photographs;
1210.21 	(4) using electronic employer notifications;
1210.22 	(5) issuing immediate verification of subjects' eligibility to provide services as more 
1210.23 	studies are completed under the NETStudy 2.0 system; and
1210.24 	(6) providing electronic access to certain notices for entities and background study 
1210.25 	subjects.
1210.26 	(b) Information obtained by entities from public web-based data through NETStudy 2.0 
1210.27 	under paragraph (a), clause (1), or any other source that is not direct correspondence from 
1210.28 	the commissioner is not a notice of disqualification from the commissioner under this 
1210.29 	chapter.

1211.1 	Sec. 14. [245C.041] EMERGENCY WAIVER TO TEMPORARILY MODIFY 
1211.2 	BACKGROUND STUDY REQUIREMENTS.
1211.3 	(a) In the event of an emergency identified by the commissioner, the commissioner may 
1211.4 	temporarily waive or modify provisions in this chapter, except that the commissioner shall 
1211.5 	not waive or modify:
1211.6 	(1) disqualification standards in section 245C.14 or 245C.15; or
1211.7 	(2) any provision regarding the scope of individuals required to be subject to a background 
1211.8 	study conducted under this chapter.
1211.9 	(b) For the purposes of this section, an emergency may include, but is not limited to a 
1211.10 	public health emergency, environmental emergency, natural disaster, or other unplanned 
1211.11 	event that the commissioner has determined prevents the requirements in this chapter from 
1211.12 	being met. This authority shall not exceed the amount of time needed to respond to the 
1211.13 	emergency and reinstate the requirements of this chapter. The commissioner has the authority 
1211.14 	to establish the process and time frame for returning to full compliance with this chapter. 
1211.15 	The commissioner shall determine the length of time an emergency study is valid.
1211.16 	(c) At the conclusion of the emergency, entities must submit a new, compliant background 
1211.17 	study application and fee for each individual who was the subject of background study 
1211.18 	affected by the powers created in this section, referred to as an "emergency study" to have 
1211.19 	a new study that fully complies with this chapter within a time frame and notice period 
1211.20 	established by the commissioner.

1211.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

1211.22 	Sec. 15. Minnesota Statutes 2022, section 245C.05, subdivision 5, is amended to read:
1211.23 		Subd. 5.Fingerprints and photograph. (a) Notwithstanding paragraph (b) (c), for 
1211.24 	background studies conducted by the commissioner for child foster care, children's residential 
1211.25 	facilities, adoptions, or a transfer of permanent legal and physical custody of a child, the 
1211.26 	subject of the background study, who is 18 years of age or older, shall provide the 
1211.27 	commissioner with a set of classifiable fingerprints obtained from an authorized agency for 
1211.28 	a national criminal history record check.
1211.29 	(b) Notwithstanding paragraph (c), for background studies conducted by the commissioner 
1211.30 	for Head Start programs, the subject of the background study shall provide the commissioner 
1211.31 	with a set of classifiable fingerprints obtained from an authorized agency for a national 
1211.32 	criminal history record check.
1212.1 	(b) (c) For background studies initiated on or after the implementation of NETStudy 
1212.2 	2.0, except as provided under subdivision 5a, every subject of a background study must 
1212.3 	provide the commissioner with a set of the background study subject's classifiable fingerprints 
1212.4 	and photograph. The photograph and fingerprints must be recorded at the same time by the 
1212.5 	authorized fingerprint collection vendor or vendors and sent to the commissioner through 
1212.6 	the commissioner's secure data system described in section 245C.32, subdivision 1a, 
1212.7 	paragraph (b).
1212.8 	(c) (d) The fingerprints shall be submitted by the commissioner to the Bureau of Criminal 
1212.9 	Apprehension and, when specifically required by law, submitted to the Federal Bureau of 
1212.10 	Investigation for a national criminal history record check.
1212.11 	(d) (e) The fingerprints must not be retained by the Department of Public Safety, Bureau 
1212.12 	of Criminal Apprehension, or the commissioner. The Federal Bureau of Investigation will 
1212.13 	not retain background study subjects' fingerprints.
1212.14 	(e) (f) The authorized fingerprint collection vendor or vendors shall, for purposes of 
1212.15 	verifying the identity of the background study subject, be able to view the identifying 
1212.16 	information entered into NETStudy 2.0 by the entity that initiated the background study, 
1212.17 	but shall not retain the subject's fingerprints, photograph, or information from NETStudy 
1212.18 	2.0. The authorized fingerprint collection vendor or vendors shall retain no more than the 
1212.19 	name and date and time the subject's fingerprints were recorded and sent, only as necessary 
1212.20 	for auditing and billing activities.
1212.21 	(f) (g) For any background study conducted under this chapter, the subject shall provide 
1212.22 	the commissioner with a set of classifiable fingerprints when the commissioner has reasonable 
1212.23 	cause to require a national criminal history record check as defined in section 245C.02, 
1212.24 	subdivision 15a.

1212.25 	Sec. 16. Minnesota Statutes 2023 Supplement, section 245C.08, subdivision 1, is amended 
1212.26 	to read:
1212.27 		Subdivision 1.Background studies conducted by Department of Human Services. (a) 
1212.28 	For a background study conducted by the Department of Human Services, the commissioner 
1212.29 	shall review:
1212.30 	(1) information related to names of substantiated perpetrators of maltreatment of 
1212.31 	vulnerable adults that has been received by the commissioner as required under section 
1212.32 	626.557, subdivision 9c, paragraph (j);
1213.1 	(2) the commissioner's records relating to the maltreatment of minors in licensed 
1213.2 	programs, and from findings of maltreatment of minors as indicated through the social 
1213.3 	service information system;
1213.4 	(3) information from juvenile courts as required in subdivision 4 for individuals listed 
1213.5 	in section 245C.03, subdivision 1, paragraph (a), for studies under this chapter when there 
1213.6 	is reasonable cause;
1213.7 	(4) information from the Bureau of Criminal Apprehension, including information 
1213.8 	regarding a background study subject's registration in Minnesota as a predatory offender 
1213.9 	under section 243.166;
1213.10 	(5) except as provided in clause (6), information received as a result of submission of 
1213.11 	fingerprints for a national criminal history record check, as defined in section 245C.02, 
1213.12 	subdivision 13c, when the commissioner has reasonable cause for a national criminal history 
1213.13 	record check as defined under section 245C.02, subdivision 15a, or as required under section 
1213.14 	144.057, subdivision 1, clause (2);
1213.15 	(6) for a background study related to a child foster family setting application for licensure, 
1213.16 	foster residence settings, children's residential facilities, a transfer of permanent legal and 
1213.17 	physical custody of a child under sections 260C.503 to 260C.515, or adoptions, and for a 
1213.18 	background study required for family child care, certified license-exempt child care, child 
1213.19 	care centers, and legal nonlicensed child care authorized under chapter 119B, the 
1213.20 	commissioner shall also review:
1213.21 	(i) information from the child abuse and neglect registry for any state in which the 
1213.22 	background study subject has resided for the past five years;
1213.23 	(ii) when the background study subject is 18 years of age or older, or a minor under 
1213.24 	section 245C.05, subdivision 5a, paragraph (c), information received following submission 
1213.25 	of fingerprints for a national criminal history record check; and
1213.26 	(iii) when the background study subject is 18 years of age or older or a minor under 
1213.27 	section 245C.05, subdivision 5a, paragraph (d), for licensed family child care, certified 
1213.28 	license-exempt child care, licensed child care centers, and legal nonlicensed child care 
1213.29 	authorized under chapter 119B, information obtained using non-fingerprint-based data 
1213.30 	including information from the criminal and sex offender registries for any state in which 
1213.31 	the background study subject resided for the past five years and information from the national 
1213.32 	crime information database and the national sex offender registry;
1214.1 	(7) for a background study required for family child care, certified license-exempt child 
1214.2 	care centers, licensed child care centers, and legal nonlicensed child care authorized under 
1214.3 	chapter 119B, the background study shall also include, to the extent practicable, a name 
1214.4 	and date-of-birth search of the National Sex Offender Public website; and
1214.5 	(8) for a background study required for treatment programs for sexual psychopathic 
1214.6 	personalities or sexually dangerous persons, the background study shall only include a 
1214.7 	review of the information required under paragraph (a), clauses (1) to (4).
1214.8 	(b) Except as otherwise provided in this paragraph, notwithstanding expungement by a 
1214.9 	court, the commissioner may consider information obtained under paragraph (a), clauses 
1214.10 	(3) and (4), unless:
1214.11 	(1) the commissioner received notice of the petition for expungement and the court order 
1214.12 	for expungement is directed specifically to the commissioner; or
1214.13 	(2) the commissioner received notice of the expungement order issued pursuant to section 
1214.14 	609A.017, 609A.025, or 609A.035, and the order for expungement is directed specifically 
1214.15 	to the commissioner.
1214.16 	The commissioner may not consider information obtained under paragraph (a), clauses (3) 
1214.17 	and (4), or from any other source that identifies a violation of chapter 152 without 
1214.18 	determining if the offense involved the possession of marijuana or tetrahydrocannabinol 
1214.19 	and, if so, whether the person received a grant of expungement or order of expungement, 
1214.20 	or the person was resentenced to a lesser offense. If the person received a grant of 
1214.21 	expungement or order of expungement, the commissioner may not consider information 
1214.22 	related to that violation but may consider any other relevant information arising out of the 
1214.23 	same incident.
1214.24 	(c) The commissioner shall also review criminal case information received according 
1214.25 	to section 245C.04, subdivision 4a, from the Minnesota court information system that relates 
1214.26 	to individuals who have already been studied under this chapter and who remain affiliated 
1214.27 	with the agency that initiated the background study.
1214.28 	(d) When the commissioner has reasonable cause to believe that the identity of a 
1214.29 	background study subject is uncertain, the commissioner may require the subject to provide 
1214.30 	a set of classifiable fingerprints for purposes of completing a fingerprint-based record check 
1214.31 	with the Bureau of Criminal Apprehension. Fingerprints collected under this paragraph 
1214.32 	shall not be saved by the commissioner after they have been used to verify the identity of 
1214.33 	the background study subject against the particular criminal record in question.
1215.1 	(e) The commissioner may inform the entity that initiated a background study under 
1215.2 	NETStudy 2.0 of the status of processing of the subject's fingerprints.

1215.3 	Sec. 17. Minnesota Statutes 2022, section 245C.10, subdivision 18, is amended to read:
1215.4 		Subd. 18.Applicants, licensees, and other occupations regulated by commissioner 
1215.5 	of health. The applicant or license holder is responsible for paying to the Department of 
1215.6 	Human Services all fees associated with the preparation of the fingerprints, the criminal 
1215.7 	records check consent form, and, through a fee of no more than $44 per study, the criminal 
1215.8 	background check.

1215.9 	Sec. 18. Minnesota Statutes 2022, section 245C.14, subdivision 1, is amended to read:
1215.10 		Subdivision 1.Disqualification from direct contact. (a) The commissioner shall 
1215.11 	disqualify an individual who is the subject of a background study from any position allowing 
1215.12 	direct contact with persons receiving services from the license holder or entity identified in 
1215.13 	section 245C.03, upon receipt of information showing, or when a background study 
1215.14 	completed under this chapter shows any of the following:
1215.15 	(1) a conviction of, admission to, or Alford plea to one or more crimes listed in section 
1215.16 	245C.15, regardless of whether the conviction or admission is a felony, gross misdemeanor, 
1215.17 	or misdemeanor level crime;
1215.18 	(2) a preponderance of the evidence indicates the individual has committed an act or 
1215.19 	acts that meet the definition of any of the crimes listed in section 245C.15, regardless of 
1215.20 	whether the preponderance of the evidence is for a felony, gross misdemeanor, or 
1215.21 	misdemeanor level crime; or
1215.22 	(3) an investigation results in an administrative determination listed under section 
1215.23 	245C.15, subdivision 4, paragraph (b).; or
1215.24 	(4) the individual's parental rights have been terminated under section 260C.301, 
1215.25 	subdivision 1, paragraph (b), or section 260C.301, subdivision 3.
1215.26 	(b) No individual who is disqualified following a background study under section 
1215.27 	245C.03, subdivisions 1 and 2, may be retained in a position involving direct contact with 
1215.28 	persons served by a program or entity identified in section 245C.03, unless the commissioner 
1215.29 	has provided written notice under section 245C.17 stating that:
1215.30 	(1) the individual may remain in direct contact during the period in which the individual 
1215.31 	may request reconsideration as provided in section 245C.21, subdivision 2;
1216.1 	(2) the commissioner has set aside the individual's disqualification for that program or 
1216.2 	entity identified in section 245C.03, as provided in section 245C.22, subdivision 4; or
1216.3 	(3) the license holder has been granted a variance for the disqualified individual under 
1216.4 	section 245C.30.
1216.5 	(c) Notwithstanding paragraph (a), for the purposes of a background study affiliated 
1216.6 	with a licensed family foster setting, the commissioner shall disqualify an individual who 
1216.7 	is the subject of a background study from any position allowing direct contact with persons 
1216.8 	receiving services from the license holder or entity identified in section 245C.03, upon 
1216.9 	receipt of information showing or when a background study completed under this chapter 
1216.10 	shows reason for disqualification under section 245C.15, subdivision 4a.

1216.11 	Sec. 19. Minnesota Statutes 2022, section 245C.14, is amended by adding a subdivision 
1216.12 	to read:
1216.13 		Subd. 5.Basis for disqualification. Information obtained by entities from public 
1216.14 	web-based data through NETStudy 2.0 or any other source that is not direct correspondence 
1216.15 	from the commissioner is not a notice of disqualification from the commissioner under this 
1216.16 	chapter.

1216.17 	Sec. 20. Minnesota Statutes 2023 Supplement, section 245C.15, subdivision 2, is amended 
1216.18 	to read:
1216.19 		Subd. 2.15-year disqualification. (a) An individual is disqualified under section 245C.14 
1216.20 	if: (1) less than 15 years have passed since the discharge of the sentence imposed, if any, 
1216.21 	for the offense; and (2) the individual has committed a felony-level violation of any of the 
1216.22 	following offenses: sections 152.021, subdivision 1 or 2b, (aggravated controlled substance 
1216.23 	crime in the first degree; sale crimes); 152.022, subdivision 1 (controlled substance crime 
1216.24 	in the second degree; sale crimes); 152.023, subdivision 1 (controlled substance crime in 
1216.25 	the third degree; sale crimes); 152.024, subdivision 1 (controlled substance crime in the 
1216.26 	fourth degree; sale crimes); 256.98 (wrongfully obtaining assistance); 268.182 (fraud); 
1216.27 	393.07, subdivision 10, paragraph (c) (federal SNAP fraud); 518B.01, subdivision 14 
1216.28 	(violation of an order for protection); 609.165 (felon ineligible to possess firearm); 609.2112, 
1216.29 	609.2113, or 609.2114 (criminal vehicular homicide or injury); 609.215 (suicide); 609.223
1216.30 	or 609.2231 (assault in the third or fourth degree); repeat offenses under 609.224 (assault 
1216.31 	in the fifth degree); 609.229 (crimes committed for benefit of a gang); 609.2325 (criminal 
1216.32 	abuse of a vulnerable adult); 609.2335 (financial exploitation of a vulnerable adult); 609.235
1216.33 	(use of drugs to injure or facilitate crime); 609.24 (simple robbery); 609.247, subdivision 
1217.1 	4 (carjacking in the third degree); 609.255 (false imprisonment); 609.2664 (manslaughter 
1217.2 	of an unborn child in the first degree); 609.2665 (manslaughter of an unborn child in the 
1217.3 	second degree); 609.267 (assault of an unborn child in the first degree); 609.2671 (assault 
1217.4 	of an unborn child in the second degree); 609.268 (injury or death of an unborn child in the 
1217.5 	commission of a crime); 609.27 (coercion); 609.275 (attempt to coerce); 609.466 (medical 
1217.6 	assistance fraud); 609.495 (aiding an offender); 609.498, subdivision 1 or 1b (aggravated 
1217.7 	first-degree or first-degree tampering with a witness); 609.52 (theft); 609.521 (possession 
1217.8 	of shoplifting gear); 609.522 (organized retail theft); 609.525 (bringing stolen goods into 
1217.9 	Minnesota); 609.527 (identity theft); 609.53 (receiving stolen property); 609.535 (issuance 
1217.10 	of dishonored checks); 609.562 (arson in the second degree); 609.563 (arson in the third 
1217.11 	degree); 609.582 (burglary); 609.59 (possession of burglary tools); 609.611 (insurance 
1217.12 	fraud); 609.625 (aggravated forgery); 609.63 (forgery); 609.631 (check forgery; offering a 
1217.13 	forged check); 609.635 (obtaining signature by false pretense); 609.66 (dangerous weapons); 
1217.14 	609.67 (machine guns and short-barreled shotguns); 609.687 (adulteration); 609.71 (riot); 
1217.15 	609.713 (terroristic threats); 609.746 (interference with privacy); 609.82 (fraud in obtaining 
1217.16 	credit); 609.821 (financial transaction card fraud); 617.23 (indecent exposure), not involving 
1217.17 	a minor; repeat offenses under 617.241 (obscene materials and performances; distribution 
1217.18 	and exhibition prohibited; penalty); or 624.713 (certain persons not to possess firearms).
1217.19 	(b) An individual is disqualified under section 245C.14 if less than 15 years has passed 
1217.20 	since the individual's aiding and abetting, attempt, or conspiracy to commit any of the 
1217.21 	offenses listed in paragraph (a), as each of these offenses is defined in Minnesota Statutes.
1217.22 	(c) An individual is disqualified under section 245C.14 if less than 15 years has passed 
1217.23 	since the termination of the individual's parental rights under section 260C.301, subdivision 
1217.24 	1, paragraph (b), or subdivision 3.
1217.25 	(d) An individual is disqualified under section 245C.14 if less than 15 years has passed 
1217.26 	since the discharge of the sentence imposed for an offense in any other state or country, the 
1217.27 	elements of which are substantially similar to the elements of the offenses listed in paragraph 
1217.28 	(a) or since the termination of parental rights in any other state or country, the elements of 
1217.29 	which are substantially similar to the elements listed in paragraph (c).
1217.30 	(e) If the individual studied commits one of the offenses listed in paragraph (a), but the 
1217.31 	sentence or level of offense is a gross misdemeanor or misdemeanor, the individual is 
1217.32 	disqualified but the disqualification look-back period for the offense is the period applicable 
1217.33 	to the gross misdemeanor or misdemeanor disposition.
1218.1 	(f) When a disqualification is based on a judicial determination other than a conviction, 
1218.2 	the disqualification period begins from the date of the court order. When a disqualification 
1218.3 	is based on an admission, the disqualification period begins from the date of an admission 
1218.4 	in court. When a disqualification is based on an Alford Plea, the disqualification period 
1218.5 	begins from the date the Alford Plea is entered in court. When a disqualification is based 
1218.6 	on a preponderance of evidence of a disqualifying act, the disqualification date begins from 
1218.7 	the date of the dismissal, the date of discharge of the sentence imposed for a conviction for 
1218.8 	a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.

1218.9 	Sec. 21. Minnesota Statutes 2022, section 245C.15, subdivision 3, is amended to read:
1218.10 		Subd. 3.Ten-year disqualification. (a) An individual is disqualified under section 
1218.11 	245C.14 if: (1) less than ten years have passed since the discharge of the sentence imposed, 
1218.12 	if any, for the offense; and (2) the individual has committed a gross misdemeanor-level 
1218.13 	violation of any of the following offenses: sections 256.98 (wrongfully obtaining assistance); 
1218.14 	260B.425 (criminal jurisdiction for contributing to status as a juvenile petty offender or 
1218.15 	delinquency); 260C.425 (criminal jurisdiction for contributing to need for protection or 
1218.16 	services); 268.182 (fraud); 393.07, subdivision 10, paragraph (c) (federal SNAP fraud); 
1218.17 	609.2112, 609.2113, or 609.2114 (criminal vehicular homicide or injury); 609.221 or 609.222
1218.18 	(assault in the first or second degree); 609.223 or 609.2231 (assault in the third or fourth 
1218.19 	degree); 609.224 (assault in the fifth degree); 609.224, subdivision 2, paragraph (c) (assault 
1218.20 	in the fifth degree by a caregiver against a vulnerable adult); 609.2242 and 609.2243
1218.21 	(domestic assault); 609.23 (mistreatment of persons confined); 609.231 (mistreatment of 
1218.22 	residents or patients); 609.2325 (criminal abuse of a vulnerable adult); 609.233 (criminal 
1218.23 	neglect of a vulnerable adult); 609.2335 (financial exploitation of a vulnerable adult); 
1218.24 	609.234 (failure to report maltreatment of a vulnerable adult); 609.265 (abduction); 609.275
1218.25 	(attempt to coerce); 609.324, subdivision 1a (other prohibited acts; minor engaged in 
1218.26 	prostitution); 609.33 (disorderly house); 609.377 (malicious punishment of a child); 609.378
1218.27 	(neglect or endangerment of a child); 609.466 (medical assistance fraud); 609.52 (theft); 
1218.28 	609.522 (organized retail theft); 609.525 (bringing stolen goods into Minnesota); 609.527
1218.29 	(identity theft); 609.53 (receiving stolen property); 609.535 (issuance of dishonored checks); 
1218.30 	609.582 (burglary); 609.59 (possession of burglary tools); 609.611 (insurance fraud); 609.631
1218.31 	(check forgery; offering a forged check); 609.66 (dangerous weapons); 609.71 (riot); 609.72, 
1218.32 	subdivision 3 (disorderly conduct against a vulnerable adult); repeat offenses under 609.746
1218.33 	(interference with privacy);609.749, subdivision 2 (harassment); 609.82 (fraud in obtaining 
1218.34 	credit); 609.821 (financial transaction card fraud); 617.23 (indecent exposure), not involving 
1218.35 	a minor; 617.241 (obscene materials and performances); 617.243 (indecent literature, 
1219.1 	distribution); 617.293 (harmful materials; dissemination and display to minors prohibited); 
1219.2 	or Minnesota Statutes 2012, section 609.21; or violation of an order for protection under 
1219.3 	section 518B.01, subdivision 14.
1219.4 	(b) An individual is disqualified under section 245C.14 if less than ten years has passed 
1219.5 	since the individual's aiding and abetting, attempt, or conspiracy to commit any of the 
1219.6 	offenses listed in paragraph (a), as each of these offenses is defined in Minnesota Statutes.
1219.7 	(c) An individual is disqualified under section 245C.14 if less than ten years has passed 
1219.8 	since the discharge of the sentence imposed for an offense in any other state or country, the 
1219.9 	elements of which are substantially similar to the elements of any of the offenses listed in 
1219.10 	paragraph (a).
1219.11 	(d) If the individual studied commits one of the offenses listed in paragraph (a), but the 
1219.12 	sentence or level of offense is a misdemeanor disposition, the individual is disqualified but 
1219.13 	the disqualification lookback period for the offense is the period applicable to misdemeanors.
1219.14 	(e) When a disqualification is based on a judicial determination other than a conviction, 
1219.15 	the disqualification period begins from the date of the court order. When a disqualification 
1219.16 	is based on an admission, the disqualification period begins from the date of an admission 
1219.17 	in court. When a disqualification is based on an Alford Plea, the disqualification period 
1219.18 	begins from the date the Alford Plea is entered in court. When a disqualification is based 
1219.19 	on a preponderance of evidence of a disqualifying act, the disqualification date begins from 
1219.20 	the date of the dismissal, the date of discharge of the sentence imposed for a conviction for 
1219.21 	a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.

1219.22 	Sec. 22. Minnesota Statutes 2022, section 245C.15, subdivision 4, is amended to read:
1219.23 		Subd. 4.Seven-year disqualification. (a) An individual is disqualified under section 
1219.24 	245C.14 if: (1) less than seven years has passed since the discharge of the sentence imposed, 
1219.25 	if any, for the offense; and (2) the individual has committed a misdemeanor-level violation 
1219.26 	of any of the following offenses: sections 256.98 (wrongfully obtaining assistance); 260B.425 
1219.27 	(criminal jurisdiction for contributing to status as a juvenile petty offender or delinquency); 
1219.28 	260C.425 (criminal jurisdiction for contributing to need for protection or services); 268.182 
1219.29 	(fraud); 393.07, subdivision 10, paragraph (c) (federal SNAP fraud); 609.2112, 609.2113, 
1219.30 	or 609.2114 (criminal vehicular homicide or injury); 609.221 (assault in the first degree); 
1219.31 	609.222 (assault in the second degree); 609.223 (assault in the third degree); 609.2231
1219.32 	(assault in the fourth degree); 609.224 (assault in the fifth degree); 609.2242 (domestic 
1219.33 	assault); 609.2335 (financial exploitation of a vulnerable adult); 609.234 (failure to report 
1219.34 	maltreatment of a vulnerable adult); 609.2672 (assault of an unborn child in the third degree); 
1220.1 	609.27 (coercion); violation of an order for protection under 609.3232 (protective order 
1220.2 	authorized; procedures; penalties); 609.466 (medical assistance fraud); 609.52 (theft); 
1220.3 	609.522 (organized retail theft); 609.525 (bringing stolen goods into Minnesota); 609.527
1220.4 	(identity theft); 609.53 (receiving stolen property); 609.535 (issuance of dishonored checks); 
1220.5 	609.611 (insurance fraud); 609.66 (dangerous weapons); 609.665 (spring guns); 609.746
1220.6 	(interference with privacy); 609.79 (obscene or harassing telephone calls); 609.795 (letter, 
1220.7 	telegram, or package; opening; harassment); 609.82 (fraud in obtaining credit); 609.821
1220.8 	(financial transaction card fraud); 617.23 (indecent exposure), not involving a minor; 617.293
1220.9 	(harmful materials; dissemination and display to minors prohibited); or Minnesota Statutes 
1220.10 	2012, section 609.21; or violation of an order for protection under section 518B.01 (Domestic 
1220.11 	Abuse Act).
1220.12 	(b) An individual is disqualified under section 245C.14 if less than seven years has 
1220.13 	passed since a determination or disposition of the individual's:
1220.14 	(1) failure to make required reports under section 260E.06 or 626.557, subdivision 3, 
1220.15 	for incidents in which: (i) the final disposition under section 626.557 or chapter 260E was 
1220.16 	substantiated maltreatment, and (ii) the maltreatment was recurring or serious; or
1220.17 	(2) substantiated serious or recurring maltreatment of a minor under chapter 260E, a 
1220.18 	vulnerable adult under section 626.557, or serious or recurring maltreatment in any other 
1220.19 	state, the elements of which are substantially similar to the elements of maltreatment under 
1220.20 	section 626.557 or chapter 260E for which: (i) there is a preponderance of evidence that 
1220.21 	the maltreatment occurred, and (ii) the subject was responsible for the maltreatment.
1220.22 	(c) An individual is disqualified under section 245C.14 if less than seven years has 
1220.23 	passed since the individual's aiding and abetting, attempt, or conspiracy to commit any of 
1220.24 	the offenses listed in paragraphs (a) and (b), as each of these offenses is defined in Minnesota 
1220.25 	Statutes.
1220.26 	(d) An individual is disqualified under section 245C.14 if less than seven years has 
1220.27 	passed since the discharge of the sentence imposed for an offense in any other state or 
1220.28 	country, the elements of which are substantially similar to the elements of any of the offenses 
1220.29 	listed in paragraphs (a) and (b).
1220.30 	(e) When a disqualification is based on a judicial determination other than a conviction, 
1220.31 	the disqualification period begins from the date of the court order. When a disqualification 
1220.32 	is based on an admission, the disqualification period begins from the date of an admission 
1220.33 	in court. When a disqualification is based on an Alford Plea, the disqualification period 
1220.34 	begins from the date the Alford Plea is entered in court. When a disqualification is based 
1221.1 	on a preponderance of evidence of a disqualifying act, the disqualification date begins from 
1221.2 	the date of the dismissal, the date of discharge of the sentence imposed for a conviction for 
1221.3 	a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.
1221.4 	(f) An individual is disqualified under section 245C.14 if less than seven years has passed 
1221.5 	since the individual was disqualified under section 256.98, subdivision 8.

1221.6 	Sec. 23. Minnesota Statutes 2023 Supplement, section 245C.15, subdivision 4a, is amended 
1221.7 	to read:
1221.8 		Subd. 4a.Licensed family foster setting disqualifications. (a) Notwithstanding 
1221.9 	subdivisions 1 to 4, for a background study affiliated with a licensed family foster setting, 
1221.10 	regardless of how much time has passed, an individual is disqualified under section 245C.14 
1221.11 	if the individual committed an act that resulted in a felony-level conviction for sections: 
1221.12 	609.185 (murder in the first degree); 609.19 (murder in the second degree); 609.195 (murder 
1221.13 	in the third degree); 609.20 (manslaughter in the first degree); 609.205 (manslaughter in 
1221.14 	the second degree); 609.2112 (criminal vehicular homicide); 609.221 (assault in the first 
1221.15 	degree); 609.223, subdivision 2 (assault in the third degree, past pattern of child abuse); 
1221.16 	609.223, subdivision 3 (assault in the third degree, victim under four); a felony offense 
1221.17 	under sections 609.2242 and 609.2243 (domestic assault, spousal abuse, child abuse or 
1221.18 	neglect, or a crime against children); 609.2247 (domestic assault by strangulation); 609.2325 
1221.19 	(criminal abuse of a vulnerable adult resulting in the death of a vulnerable adult); 609.245 
1221.20 	(aggravated robbery); 609.247, subdivision 2 or 3 (carjacking in the first or second degree); 
1221.21 	609.25 (kidnapping); 609.255 (false imprisonment); 609.2661 (murder of an unborn child 
1221.22 	in the first degree); 609.2662 (murder of an unborn child in the second degree); 609.2663 
1221.23 	(murder of an unborn child in the third degree); 609.2664 (manslaughter of an unborn child 
1221.24 	in the first degree); 609.2665 (manslaughter of an unborn child in the second degree); 
1221.25 	609.267 (assault of an unborn child in the first degree); 609.2671 (assault of an unborn child 
1221.26 	in the second degree); 609.268 (injury or death of an unborn child in the commission of a 
1221.27 	crime); 609.322, subdivision 1 (solicitation, inducement, and promotion of prostitution; sex 
1221.28 	trafficking in the first degree); 609.324, subdivision 1 (other prohibited acts; engaging in, 
1221.29 	hiring, or agreeing to hire minor to engage in prostitution); 609.342 (criminal sexual conduct 
1221.30 	in the first degree); 609.343 (criminal sexual conduct in the second degree); 609.344 (criminal 
1221.31 	sexual conduct in the third degree); 609.345 (criminal sexual conduct in the fourth degree); 
1221.32 	609.3451 (criminal sexual conduct in the fifth degree); 609.3453 (criminal sexual predatory 
1221.33 	conduct); 609.3458 (sexual extortion); 609.352 (solicitation of children to engage in sexual 
1221.34 	conduct); 609.377 (malicious punishment of a child); 609.378 (neglect or endangerment of 
1221.35 	a child); 609.561 (arson in the first degree); 609.582, subdivision 1 (burglary in the first 
1222.1 	degree); 609.746 (interference with privacy); 617.23 (indecent exposure); 617.246 (use of 
1222.2 	minors in sexual performance prohibited); or 617.247 (possession of pictorial representations 
1222.3 	of minors).
1222.4 	(b) Notwithstanding subdivisions 1 to 4, for the purposes of a background study affiliated 
1222.5 	with a licensed family foster setting, an individual is disqualified under section 245C.14, 
1222.6 	regardless of how much time has passed, if the individual:
1222.7 	(1) committed an action under paragraph (e) that resulted in death or involved sexual 
1222.8 	abuse, as defined in section 260E.03, subdivision 20;
1222.9 	(2) committed an act that resulted in a gross misdemeanor-level conviction for section 
1222.10 	609.3451 (criminal sexual conduct in the fifth degree);
1222.11 	(3) committed an act against or involving a minor that resulted in a felony-level conviction 
1222.12 	for: section 609.222 (assault in the second degree); 609.223, subdivision 1 (assault in the 
1222.13 	third degree); 609.2231 (assault in the fourth degree); or 609.224 (assault in the fifth degree); 
1222.14 	or
1222.15 	(4) committed an act that resulted in a misdemeanor or gross misdemeanor-level 
1222.16 	conviction for section 617.293 (dissemination and display of harmful materials to minors).
1222.17 	(c) Notwithstanding subdivisions 1 to 4, for a background study affiliated with a licensed 
1222.18 	family foster setting, an individual is disqualified under section 245C.14 if fewer than 20 
1222.19 	years have passed since the termination of the individual's parental rights under section 
1222.20 	260C.301, subdivision 1, paragraph (b), or if the individual consented to a termination of 
1222.21 	parental rights under section 260C.301, subdivision 1, paragraph (a), to settle a petition to 
1222.22 	involuntarily terminate parental rights. An individual is disqualified under section 245C.14 
1222.23 	if fewer than 20 years have passed since the termination of the individual's parental rights 
1222.24 	in any other state or country, where the conditions for the individual's termination of parental 
1222.25 	rights are substantially similar to the conditions in section 260C.301, subdivision 1, paragraph 
1222.26 	(b).
1222.27 	(d) Notwithstanding subdivisions 1 to 4, for a background study affiliated with a licensed 
1222.28 	family foster setting, an individual is disqualified under section 245C.14 if fewer than five 
1222.29 	years have passed since a felony-level violation for sections: 152.021 (controlled substance 
1222.30 	crime in the first degree); 152.022 (controlled substance crime in the second degree); 152.023 
1222.31 	(controlled substance crime in the third degree); 152.024 (controlled substance crime in the 
1222.32 	fourth degree); 152.025 (controlled substance crime in the fifth degree); 152.0261 (importing 
1222.33 	controlled substances across state borders); 152.0262, subdivision 1, paragraph (b) 
1222.34 	(possession of substance with intent to manufacture methamphetamine); 152.027, subdivision 
1223.1 	6, paragraph (c) (sale or possession of synthetic cannabinoids); 152.096 (conspiracies 
1223.2 	prohibited); 152.097 (simulated controlled substances); 152.136 (anhydrous ammonia; 
1223.3 	prohibited conduct; criminal penalties; civil liabilities); 152.137 (methamphetamine-related 
1223.4 	crimes involving children or vulnerable adults); 169A.24 (felony first-degree driving while 
1223.5 	impaired); 243.166 (violation of predatory offender registration requirements); 609.2113 
1223.6 	(criminal vehicular operation; bodily harm); 609.2114 (criminal vehicular operation; unborn 
1223.7 	child); 609.228 (great bodily harm caused by distribution of drugs); 609.2325 (criminal 
1223.8 	abuse of a vulnerable adult not resulting in the death of a vulnerable adult); 609.233 (criminal 
1223.9 	neglect); 609.235 (use of drugs to injure or facilitate a crime); 609.24 (simple robbery); 
1223.10 	609.247, subdivision 4 (carjacking in the third degree); 609.322, subdivision 1a (solicitation, 
1223.11 	inducement, and promotion of prostitution; sex trafficking in the second degree); 609.498, 
1223.12 	subdivision 1 (tampering with a witness in the first degree); 609.498, subdivision 1b 
1223.13 	(aggravated first-degree witness tampering); 609.562 (arson in the second degree); 609.563 
1223.14 	(arson in the third degree); 609.582, subdivision 2 (burglary in the second degree); 609.66 
1223.15 	(felony dangerous weapons); 609.687 (adulteration); 609.713 (terroristic threats); 609.749, 
1223.16 	subdivision 3, 4, or 5 (felony-level harassment or stalking); 609.855, subdivision 5 (shooting 
1223.17 	at or in a public transit vehicle or facility); or 624.713 (certain people not to possess firearms).
1223.18 	(e) Notwithstanding subdivisions 1 to 4, except as provided in paragraph (a), for a 
1223.19 	background study affiliated with a licensed family child foster care license, an individual 
1223.20 	is disqualified under section 245C.14 if fewer than five years have passed since:
1223.21 	(1) a felony-level violation for an act not against or involving a minor that constitutes: 
1223.22 	section 609.222 (assault in the second degree); 609.223, subdivision 1 (assault in the third 
1223.23 	degree); 609.2231 (assault in the fourth degree); or 609.224, subdivision 4 (assault in the 
1223.24 	fifth degree);
1223.25 	(2) a violation of an order for protection under section 518B.01, subdivision 14;
1223.26 	(3) a determination or disposition of the individual's failure to make required reports 
1223.27 	under section 260E.06 or 626.557, subdivision 3, for incidents in which the final disposition 
1223.28 	under chapter 260E or section 626.557 was substantiated maltreatment and the maltreatment 
1223.29 	was recurring or serious;
1223.30 	(4) a determination or disposition of the individual's substantiated serious or recurring 
1223.31 	maltreatment of a minor under chapter 260E, a vulnerable adult under section 626.557, or 
1223.32 	serious or recurring maltreatment in any other state, the elements of which are substantially 
1223.33 	similar to the elements of maltreatment under chapter 260E or section 626.557 and meet 
1223.34 	the definition of serious maltreatment or recurring maltreatment;
1224.1 	(5) a gross misdemeanor-level violation for sections: 609.224, subdivision 2 (assault in 
1224.2 	the fifth degree); 609.2242 and 609.2243 (domestic assault); 609.233 (criminal neglect); 
1224.3 	609.377 (malicious punishment of a child); 609.378 (neglect or endangerment of a child); 
1224.4 	609.746 (interference with privacy); 609.749 (stalking); or 617.23 (indecent exposure); or
1224.5 	(6) committing an act against or involving a minor that resulted in a misdemeanor-level 
1224.6 	violation of section 609.224, subdivision 1 (assault in the fifth degree).
1224.7 	(f) For purposes of this subdivision, the disqualification begins from:
1224.8 	(1) the date of the alleged violation, if the individual was not convicted;
1224.9 	(2) the date of conviction, if the individual was convicted of the violation but not 
1224.10 	committed to the custody of the commissioner of corrections; or
1224.11 	(3) the date of release from prison, if the individual was convicted of the violation and 
1224.12 	committed to the custody of the commissioner of corrections.
1224.13 	Notwithstanding clause (3), if the individual is subsequently reincarcerated for a violation 
1224.14 	of the individual's supervised release, the disqualification begins from the date of release 
1224.15 	from the subsequent incarceration.
1224.16 	(g) An individual's aiding and abetting, attempt, or conspiracy to commit any of the 
1224.17 	offenses listed in paragraphs (a) and (b), as each of these offenses is defined in Minnesota 
1224.18 	Statutes, permanently disqualifies the individual under section 245C.14. An individual is 
1224.19 	disqualified under section 245C.14 if fewer than five years have passed since the individual's 
1224.20 	aiding and abetting, attempt, or conspiracy to commit any of the offenses listed in paragraphs 
1224.21 	(d) and (e).
1224.22 	(h) An individual's offense in any other state or country, where the elements of the 
1224.23 	offense are substantially similar to any of the offenses listed in paragraphs (a) and (b), 
1224.24 	permanently disqualifies the individual under section 245C.14. An individual is disqualified 
1224.25 	under section 245C.14 if fewer than five years have passed since an offense in any other 
1224.26 	state or country, the elements of which are substantially similar to the elements of any 
1224.27 	offense listed in paragraphs (d) and (e).

1224.28 	Sec. 24. Minnesota Statutes 2022, section 245C.22, subdivision 4, is amended to read:
1224.29 		Subd. 4.Risk of harm; set aside. (a) The commissioner may set aside the disqualification 
1224.30 	if the commissioner finds that the individual has submitted sufficient information to 
1224.31 	demonstrate that the individual does not pose a risk of harm to any person served by the 
1224.32 	applicant, license holder, or other entities as provided in this chapter.
1225.1 	(b) In determining whether the individual has met the burden of proof by demonstrating 
1225.2 	the individual does not pose a risk of harm, the commissioner shall consider:
1225.3 	(1) the nature, severity, and consequences of the event or events that led to the 
1225.4 	disqualification;
1225.5 	(2) whether there is more than one disqualifying event;
1225.6 	(3) the age and vulnerability of the victim at the time of the event;
1225.7 	(4) the harm suffered by the victim;
1225.8 	(5) vulnerability of persons served by the program;
1225.9 	(6) the similarity between the victim and persons served by the program;
1225.10 	(7) the time elapsed without a repeat of the same or similar event;
1225.11 	(8) documentation of successful completion by the individual studied of training or 
1225.12 	rehabilitation pertinent to the event; and
1225.13 	(9) any other information relevant to reconsideration.
1225.14 	(c) For an individual seeking a child foster care license who is a relative of the child, 
1225.15 	the commissioner shall consider the importance of maintaining the child's relationship with 
1225.16 	relatives as an additional significant factor in determining whether a background study 
1225.17 	disqualification should be set aside.
1225.18 	(c) (d) If the individual requested reconsideration on the basis that the information relied 
1225.19 	upon to disqualify the individual was incorrect or inaccurate and the commissioner determines 
1225.20 	that the information relied upon to disqualify the individual is correct, the commissioner 
1225.21 	must also determine if the individual poses a risk of harm to persons receiving services in 
1225.22 	accordance with paragraph (b).
1225.23 	(d) (e) For an individual seeking employment in the substance use disorder treatment 
1225.24 	field, the commissioner shall set aside the disqualification if the following criteria are met:
1225.25 	(1) the individual is not disqualified for a crime of violence as listed under section 
1225.26 	624.712, subdivision 5, except for the following crimes: crimes listed under section 152.021, 
1225.27 	subdivision 2 or 2a; 152.022, subdivision 2; 152.023, subdivision 2; 152.024; or 152.025;
1225.28 	(2) the individual is not disqualified under section 245C.15, subdivision 1;
1225.29 	(3) the individual is not disqualified under section 245C.15, subdivision 4, paragraph 
1225.30 	(b);
1226.1 	(4) the individual provided documentation of successful completion of treatment, at least 
1226.2 	one year prior to the date of the request for reconsideration, at a program licensed under 
1226.3 	chapter 245G, and has had no disqualifying crimes or conduct under section 245C.15 after 
1226.4 	the successful completion of treatment;
1226.5 	(5) the individual provided documentation demonstrating abstinence from controlled 
1226.6 	substances, as defined in section 152.01, subdivision 4, for the period of one year prior to 
1226.7 	the date of the request for reconsideration; and
1226.8 	(6) the individual is seeking employment in the substance use disorder treatment field.

1226.9 	Sec. 25. Minnesota Statutes 2022, section 245C.24, subdivision 2, is amended to read:
1226.10 		Subd. 2.Permanent bar to set aside a disqualification. (a) Except as provided in 
1226.11 	paragraphs (b) to (f) (g), the commissioner may not set aside the disqualification of any 
1226.12 	individual disqualified pursuant to this chapter, regardless of how much time has passed, 
1226.13 	if the individual was disqualified for a crime or conduct listed in section 245C.15, subdivision 
1226.14 	1.
1226.15 	(b) For an individual in the substance use disorder or corrections field who was 
1226.16 	disqualified for a crime or conduct listed under section 245C.15, subdivision 1, and whose 
1226.17 	disqualification was set aside prior to July 1, 2005, the commissioner must consider granting 
1226.18 	a variance pursuant to section 245C.30 for the license holder for a program dealing primarily 
1226.19 	with adults. A request for reconsideration evaluated under this paragraph must include a 
1226.20 	letter of recommendation from the license holder that was subject to the prior set-aside 
1226.21 	decision addressing the individual's quality of care to children or vulnerable adults and the 
1226.22 	circumstances of the individual's departure from that service.
1226.23 	(c) If an individual who requires a background study for nonemergency medical 
1226.24 	transportation services under section 245C.03, subdivision 12, was disqualified for a crime 
1226.25 	or conduct listed under section 245C.15, subdivision 1, and if more than 40 years have 
1226.26 	passed since the discharge of the sentence imposed, the commissioner may consider granting 
1226.27 	a set-aside pursuant to section 245C.22. A request for reconsideration evaluated under this 
1226.28 	paragraph must include a letter of recommendation from the employer. This paragraph does 
1226.29 	not apply to a person disqualified based on a violation of sections 243.166; 609.185 to 
1226.30 	609.205; 609.25; 609.342 to 609.3453; 609.352; 617.23, subdivision 2, clause (1), or 3, 
1226.31 	clause (1); 617.246; or 617.247.
1226.32 	(d) When a licensed foster care provider adopts an individual who had received foster 
1226.33 	care services from the provider for over six months, and the adopted individual is required 
1227.1 	to receive a background study under section 245C.03, subdivision 1, paragraph (a), clause 
1227.2 	(2) or (6), the commissioner may grant a variance to the license holder under section 245C.30 
1227.3 	to permit the adopted individual with a permanent disqualification to remain affiliated with 
1227.4 	the license holder under the conditions of the variance when the variance is recommended 
1227.5 	by the county of responsibility for each of the remaining individuals in placement in the 
1227.6 	home and the licensing agency for the home.
1227.7 	(e) For an individual 18 years of age or older affiliated with a licensed family foster 
1227.8 	setting, the commissioner must not set aside or grant a variance for the disqualification of 
1227.9 	any individual disqualified pursuant to this chapter, regardless of how much time has passed, 
1227.10 	if the individual was disqualified for a crime or conduct listed in section 245C.15, subdivision 
1227.11 	4a, paragraphs (a) and (b).
1227.12 	(f) In connection with a family foster setting license, the commissioner may grant a 
1227.13 	variance to the disqualification for an individual who is under 18 years of age at the time 
1227.14 	the background study is submitted.
1227.15 	(g) In connection with foster residence settings and children's residential facilities, the 
1227.16 	commissioner must not set aside or grant a variance for the disqualification of any individual 
1227.17 	disqualified pursuant to this chapter, regardless of how much time has passed, if the individual 
1227.18 	was disqualified for a crime or conduct listed in section 245C.15, subdivision 4a, paragraph 
1227.19 	(a) or (b).

1227.20 	Sec. 26. Minnesota Statutes 2022, section 245C.24, subdivision 5, is amended to read:
1227.21 		Subd. 5.Five-year bar to set aside or variance disqualification; children's residential 
1227.22 	facilities, foster residence settings. The commissioner shall not set aside or grant a variance 
1227.23 	for the disqualification of an individual in connection with a license for a children's residential 
1227.24 	facility or foster residence setting who was convicted of a felony within the past five years 
1227.25 	for: (1) physical assault or battery; or (2) a drug-related offense.

1227.26 	Sec. 27. Minnesota Statutes 2022, section 245C.30, is amended by adding a subdivision 
1227.27 	to read:
1227.28 		Subd. 1b.Child foster care variances. For an individual seeking a child foster care 
1227.29 	license who is a relative of the child, the commissioner shall consider the importance of 
1227.30 	maintaining the child's relationship with relatives as an additional significant factor in 
1227.31 	determining whether the individual should be granted a variance.

1228.1 	Sec. 28. Minnesota Statutes 2022, section 245F.09, subdivision 2, is amended to read:
1228.2 		Subd. 2.Protective procedures plan. A license holder must have a written policy and 
1228.3 	procedure that establishes the protective procedures that program staff must follow when 
1228.4 	a patient is in imminent danger of harming self or others. The policy must be appropriate 
1228.5 	to the type of facility and the level of staff training. The protective procedures policy must 
1228.6 	include:
1228.7 	(1) an approval signed and dated by the program director and medical director prior to 
1228.8 	implementation. Any changes to the policy must also be approved, signed, and dated by the 
1228.9 	current program director and the medical director prior to implementation;
1228.10 	(2) which protective procedures the license holder will use to prevent patients from 
1228.11 	imminent danger of harming self or others;
1228.12 	(3) the emergency conditions under which the protective procedures are permitted to be 
1228.13 	used, if any;
1228.14 	(4) the patient's health conditions that limit the specific procedures that may be used and 
1228.15 	alternative means of ensuring safety;
1228.16 	(5) emergency resources the program staff must contact when a patient's behavior cannot 
1228.17 	be controlled by the procedures established in the policy;
1228.18 	(6) the training that staff must have before using any protective procedure;
1228.19 	(7) documentation of approved therapeutic holds;
1228.20 	(8) the use of law enforcement personnel as described in subdivision 4;
1228.21 	(9) standards governing emergency use of seclusion. Seclusion must be used only when 
1228.22 	less restrictive measures are ineffective or not feasible. The standards in items (i) to (vii) 
1228.23 	must be met when seclusion is used with a patient:
1228.24 	(i) seclusion must be employed solely for the purpose of preventing a patient from 
1228.25 	imminent danger of harming self or others;
1228.26 	(ii) seclusion rooms must be equipped in a manner that prevents patients from self-harm 
1228.27 	using projections, windows, electrical fixtures, or hard objects, and must allow the patient 
1228.28 	to be readily observed without being interrupted;
1228.29 	(iii) seclusion must be authorized by the program director, a licensed physician, a 
1228.30 	registered nurse, or a licensed physician assistant. If one of these individuals is not present 
1228.31 	in the facility, the program director or a licensed physician, registered nurse, or physician 
1229.1 	assistant must be contacted and authorization must be obtained within 30 minutes of initiating 
1229.2 	seclusion, according to written policies;
1229.3 	(iv) patients must not be placed in seclusion for more than 12 hours at any one time;
1229.4 	(v) once the condition of a patient in seclusion has been determined to be safe enough 
1229.5 	to end continuous observation, a patient in seclusion must be observed at a minimum of 
1229.6 	every 15 minutes for the duration of seclusion and must always be within hearing range of 
1229.7 	program staff;
1229.8 	(vi) a process for program staff to use to remove a patient to other resources available 
1229.9 	to the facility if seclusion does not sufficiently assure patient safety; and
1229.10 	(vii) a seclusion area may be used for other purposes, such as intensive observation, if 
1229.11 	the room meets normal standards of care for the purpose and if the room is not locked; and
1229.12 	(10) physical holds may only be used when less restrictive measures are not feasible. 
1229.13 	The standards in items (i) to (iv) must be met when physical holds are used with a patient:
1229.14 	(i) physical holds must be employed solely for preventing a patient from imminent 
1229.15 	danger of harming self or others;
1229.16 	(ii) physical holds must be authorized by the program director, a licensed physician, a 
1229.17 	registered nurse, or a physician assistant. If one of these individuals is not present in the 
1229.18 	facility, the program director or a licensed physician, registered nurse, or physician assistant 
1229.19 	must be contacted and authorization must be obtained within 30 minutes of initiating a 
1229.20 	physical hold, according to written policies;
1229.21 	(iii) the patient's health concerns must be considered in deciding whether to use physical 
1229.22 	holds and which holds are appropriate for the patient; and
1229.23 	(iv) only approved holds may be utilized. Prone and contraindicated holds are not allowed 
1229.24 	according to section 245A.211 and must not be authorized.

1229.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

1229.26 	Sec. 29. Minnesota Statutes 2022, section 245F.14, is amended by adding a subdivision 
1229.27 	to read:
1229.28 		Subd. 8.Notification to commissioner of changes in key staff positions. A license 
1229.29 	holder must notify the commissioner within five business days of a change or vacancy in a 
1229.30 	key staff position. The key positions are a program director as required by subdivision 1, a 
1229.31 	registered nurse as required by subdivision 4, and a medical director as required by 
1229.32 	subdivision 5. The license holder must notify the commissioner of the staffing change on 
1230.1 	a form approved by the commissioner and include the name of the staff person now assigned 
1230.2 	to the key staff position and the staff person's qualifications for the position. The license 
1230.3 	holder must notify the program licensor of a vacancy to discuss how the duties of the key 
1230.4 	staff position will be fulfilled during the vacancy.

1230.5 	EFFECTIVE DATE. This section is effective January 1, 2025.

1230.6 	Sec. 30. Minnesota Statutes 2022, section 245F.17, is amended to read:
1230.7 	245F.17 PERSONNEL FILES.
1230.8 	A license holder must maintain a separate personnel file for each staff member. At a 
1230.9 	minimum, the file must contain:
1230.10 	(1) a completed application for employment signed by the staff member that contains 
1230.11 	the staff member's qualifications for employment and documentation related to the applicant's 
1230.12 	background study data, as defined in chapter 245C;
1230.13 	(2) documentation of the staff member's current professional license or registration, if 
1230.14 	relevant;
1230.15 	(3) documentation of orientation and subsequent training; and
1230.16 	(4) documentation of a statement of freedom from substance use problems; and
1230.17 	(5) an annual job performance evaluation.

1230.18 	EFFECTIVE DATE. This section is effective the day following final enactment.

1230.19 	Sec. 31. Minnesota Statutes 2022, section 245G.07, subdivision 4, is amended to read:
1230.20 		Subd. 4.Location of service provision. The license holder may provide services at any 
1230.21 	of the license holder's licensed locations or at another suitable location including a school, 
1230.22 	government building, medical or behavioral health facility, or social service organization, 
1230.23 	upon notification and approval of the commissioner. If services are provided off site from 
1230.24 	the licensed site, the reason for the provision of services remotely must be documented. 
1230.25 	The license holder may provide additional services under subdivision 2, clauses (2) to (5), 
1230.26 	off-site if the license holder includes a policy and procedure detailing the off-site location 
1230.27 	as a part of the treatment service description and the program abuse prevention plan.
1230.28 	(a) The license holder must provide all treatment services a client receives at one of the 
1230.29 	license holder's substance use disorder treatment licensed locations or at a location allowed 
1230.30 	under paragraphs (b) to (f). If the services are provided at the locations in paragraphs (b) to 
1230.31 	(d), the license holder must document in the client record the location services were provided.
1231.1 	(b) The license holder may provide nonresidential individual treatment services at a 
1231.2 	client's home or place of residence.
1231.3 	(c) If the license holder provides treatment services by telehealth, the services must be 
1231.4 	provided according to this paragraph:
1231.5 	(1) the license holder must maintain a licensed physical location in Minnesota where 
1231.6 	the license holder must offer all treatment services in subdivision 1, paragraph (a), clauses 
1231.7 	(1) to (4), physically in-person to each client;
1231.8 	(2) the license holder must meet all requirements for the provision of telehealth in sections 
1231.9 	254B.05, subdivision 5, paragraph (f), and 256B.0625, subdivision 3b. The license holder 
1231.10 	must document all items in section 256B.0625, subdivision 3b, paragraph (c), for each client 
1231.11 	receiving services by telehealth, regardless of payment type or whether the client is a medical 
1231.12 	assistance enrollee;
1231.13 	(3) the license holder may provide treatment services by telehealth to clients individually;
1231.14 	(4) the license holder may provide treatment services by telehealth to a group of clients 
1231.15 	that are each in a separate physical location;
1231.16 	(5) the license holder must not provide treatment services remotely by telehealth to a 
1231.17 	group of clients meeting together in person, unless permitted under clause (7);
1231.18 	(6) clients and staff may join an in-person group by telehealth if a staff member qualified 
1231.19 	to provide the treatment service is physically present with the group of clients meeting 
1231.20 	together in person; and
1231.21 	(7) the qualified professional providing a residential group treatment service by telehealth 
1231.22 	must be physically present on-site at the licensed residential location while the service is 
1231.23 	being provided. If weather conditions or short-term illness prohibit a qualified professional 
1231.24 	from traveling to the residential program and another qualified professional is not available 
1231.25 	to provide the service, a qualified professional may provide a residential group treatment 
1231.26 	service by telehealth from a location away from the licensed residential location. In such 
1231.27 	circumstances, the license holder must ensure that a qualified professional does not provide 
1231.28 	a residential group treatment service by telehealth from a location away from the licensed 
1231.29 	residential location for more than one day at a time, must ensure that a staff person who 
1231.30 	qualifies as a paraprofessional is physically present with the group of clients, and must 
1231.31 	document the reason for providing the remote telehealth service in the records of clients 
1231.32 	receiving the service. The license holder must document the dates that residential group 
1231.33 	treatment services were provided by telehealth from a location away from the licensed 
1232.1 	residential location in a central log and must provide the log to the commissioner upon 
1232.2 	request.
1232.3 	(d) The license holder may provide the additional treatment services under subdivision 
1232.4 	2, clauses (2) to (6) and (8), away from the licensed location at a suitable location appropriate 
1232.5 	to the treatment service.
1232.6 	(e) Upon written approval from the commissioner for each satellite location, the license 
1232.7 	holder may provide nonresidential treatment services at satellite locations that are in a 
1232.8 	school, jail, or nursing home. A satellite location may only provide services to students of 
1232.9 	the school, inmates of the jail, or residents of the nursing home. Schools, jails, and nursing 
1232.10 	homes are exempt from the licensing requirements in section 245A.04, subdivision 2a, to 
1232.11 	document compliance with building codes, fire and safety codes, health rules, and zoning 
1232.12 	ordinances.
1232.13 	(f) The commissioner may approve other suitable locations as satellite locations for 
1232.14 	nonresidential treatment services. The commissioner may require satellite locations under 
1232.15 	this paragraph to meet all applicable licensing requirements. The license holder may not 
1232.16 	have more than two satellite locations per license under this paragraph.
1232.17 	(g) The license holder must provide the commissioner access to all files, documentation, 
1232.18 	staff persons, and any other information the commissioner requires at the main licensed 
1232.19 	location for all clients served at any location under paragraphs (b) to (f).
1232.20 	(h) Notwithstanding sections 245A.65, subdivision 2, and 626.557, subdivision 14, a 
1232.21 	program abuse prevention plan is not required for satellite or other locations under paragraphs 
1232.22 	(b) to (e). An individual abuse prevention plan is still required for any client that is a 
1232.23 	vulnerable adult as defined in section 626.5572, subdivision 21.

1232.24 	EFFECTIVE DATE. This section is effective January 1, 2025.

1232.25 	Sec. 32. Minnesota Statutes 2022, section 245G.08, subdivision 5, is amended to read:
1232.26 		Subd. 5.Administration of medication and assistance with self-medication. (a) A 
1232.27 	license holder must meet the requirements in this subdivision if a service provided includes 
1232.28 	the administration of medication.
1232.29 	(b) A staff member, other than a licensed practitioner or nurse, who is delegated by a 
1232.30 	licensed practitioner or a registered nurse the task of administration of medication or assisting 
1232.31 	with self-medication, must:
1233.1 	(1) successfully complete a medication administration training program for unlicensed 
1233.2 	personnel through an accredited Minnesota postsecondary educational institution. A staff 
1233.3 	member's completion of the course must be documented in writing and placed in the staff 
1233.4 	member's personnel file;
1233.5 	(2) be trained according to a formalized training program that is taught by a registered 
1233.6 	nurse and offered by the license holder. The training must include the process for 
1233.7 	administration of naloxone, if naloxone is kept on site. A staff member's completion of the 
1233.8 	training must be documented in writing and placed in the staff member's personnel records; 
1233.9 	or
1233.10 	(3) demonstrate to a registered nurse competency to perform the delegated activity. A 
1233.11 	registered nurse must be employed or contracted to develop the policies and procedures for 
1233.12 	administration of medication or assisting with self-administration of medication, or both.
1233.13 	(c) A registered nurse must provide supervision as defined in section 148.171, subdivision 
1233.14 	23. The registered nurse's supervision must include, at a minimum, monthly on-site 
1233.15 	supervision or more often if warranted by a client's health needs. The policies and procedures 
1233.16 	must include:
1233.17 	(1) a provision that a delegation of administration of medication is limited to a method 
1233.18 	a staff member has been trained to administer and limited to:
1233.19 	(i) a medication that is administered orally, topically, or as a suppository, an eye drop, 
1233.20 	an ear drop, an inhalant, or an intranasal; and
1233.21 	(ii) an intramuscular injection of naloxone an opiate antagonist as defined in section 
1233.22 	604A.04, subdivision 1, or epinephrine;
1233.23 	(2) a provision that each client's file must include documentation indicating whether 
1233.24 	staff must conduct the administration of medication or the client must self-administer 
1233.25 	medication, or both;
1233.26 	(3) a provision that a client may carry emergency medication such as nitroglycerin as 
1233.27 	instructed by the client's physician, advanced practice registered nurse, or physician assistant;
1233.28 	(4) a provision for the client to self-administer medication when a client is scheduled to 
1233.29 	be away from the facility;
1233.30 	(5) a provision that if a client self-administers medication when the client is present in 
1233.31 	the facility, the client must self-administer medication under the observation of a trained 
1233.32 	staff member;
1234.1 	(6) a provision that when a license holder serves a client who is a parent with a child, 
1234.2 	the parent may only administer medication to the child under a staff member's supervision;
1234.3 	(7) requirements for recording the client's use of medication, including staff signatures 
1234.4 	with date and time;
1234.5 	(8) guidelines for when to inform a nurse of problems with self-administration of 
1234.6 	medication, including a client's failure to administer, refusal of a medication, adverse 
1234.7 	reaction, or error; and
1234.8 	(9) procedures for acceptance, documentation, and implementation of a prescription, 
1234.9 	whether written, verbal, telephonic, or electronic.

1234.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

1234.11 	Sec. 33. Minnesota Statutes 2022, section 245G.08, subdivision 6, is amended to read:
1234.12 		Subd. 6.Control of drugs. A license holder must have and implement written policies 
1234.13 	and procedures developed by a registered nurse that contain:
1234.14 	(1) a requirement that each drug must be stored in a locked compartment. A Schedule 
1234.15 	II drug, as defined by section 152.02, subdivision 3, must be stored in a separately locked 
1234.16 	compartment, permanently affixed to the physical plant or medication cart;
1234.17 	(2) a system which accounts for all scheduled drugs each shift;
1234.18 	(3) a procedure for recording the client's use of medication, including the signature of 
1234.19 	the staff member who completed the administration of the medication with the time and 
1234.20 	date;
1234.21 	(4) a procedure to destroy a discontinued, outdated, or deteriorated medication;
1234.22 	(5) a statement that only authorized personnel are permitted access to the keys to a locked 
1234.23 	compartment;
1234.24 	(6) a statement that no legend drug supply for one client shall be given to another client; 
1234.25 	and
1234.26 	(7) a procedure for monitoring the available supply of naloxone an opiate antagonist as 
1234.27 	defined in section 604A.04, subdivision 1, on site, and replenishing the naloxone supply 
1234.28 	when needed, and destroying naloxone according to clause (4).

1234.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

1235.1 	Sec. 34. Minnesota Statutes 2022, section 245G.10, is amended by adding a subdivision 
1235.2 	to read:
1235.3 		Subd. 6.Notification to commissioner of changes in key staff positions. A license 
1235.4 	holder must notify the commissioner within five business days of a change or vacancy in a 
1235.5 	key staff position. The key positions are a treatment director as required by subdivision 1, 
1235.6 	an alcohol and drug counselor supervisor as required by subdivision 2, and a registered 
1235.7 	nurse as required by section 245G.08, subdivision 5, paragraph (c). The license holder must 
1235.8 	notify the commissioner of the staffing change on a form approved by the commissioner 
1235.9 	and include the name of the staff person now assigned to the key staff position and the staff 
1235.10 	person's qualifications for the position. The license holder must notify the program licensor 
1235.11 	of a vacancy to discuss how the duties of the key staff position will be fulfilled during the 
1235.12 	vacancy.

1235.13 	EFFECTIVE DATE. This section is effective January 1, 2025.

1235.14 	Sec. 35. Minnesota Statutes 2023 Supplement, section 245G.22, subdivision 2, is amended 
1235.15 	to read:
1235.16 		Subd. 2.Definitions. (a) For purposes of this section, the terms defined in this subdivision 
1235.17 	have the meanings given them.
1235.18 	(b) "Diversion" means the use of a medication for the treatment of opioid addiction being 
1235.19 	diverted from intended use of the medication.
1235.20 	(c) "Guest dose" means administration of a medication used for the treatment of opioid 
1235.21 	addiction to a person who is not a client of the program that is administering or dispensing 
1235.22 	the medication.
1235.23 	(d) "Medical director" means a practitioner licensed to practice medicine in the 
1235.24 	jurisdiction that the opioid treatment program is located who assumes responsibility for 
1235.25 	administering all medical services performed by the program, either by performing the 
1235.26 	services directly or by delegating specific responsibility to a practitioner of the opioid 
1235.27 	treatment program.
1235.28 	(e) "Medication used for the treatment of opioid use disorder" means a medication 
1235.29 	approved by the Food and Drug Administration for the treatment of opioid use disorder.
1235.30 	(f) "Minnesota health care programs" has the meaning given in section 256B.0636.
1235.31 	(g) "Opioid treatment program" has the meaning given in Code of Federal Regulations, 
1235.32 	title 42, section 8.12, and includes programs licensed under this chapter.
1236.1 	(h) "Practitioner" means a staff member holding a current, unrestricted license to practice 
1236.2 	medicine issued by the Board of Medical Practice or nursing issued by the Board of Nursing 
1236.3 	and is currently registered with the Drug Enforcement Administration to order or dispense 
1236.4 	controlled substances in Schedules II to V under the Controlled Substances Act, United 
1236.5 	States Code, title 21, part B, section 821. Practitioner includes an advanced practice registered 
1236.6 	nurse and physician assistant if the staff member receives a variance by the state opioid 
1236.7 	treatment authority under section 254A.03 and the federal Substance Abuse and Mental 
1236.8 	Health Services Administration.
1236.9 	(i) "Unsupervised use" or "take-home" means the use of a medication for the treatment 
1236.10 	of opioid use disorder dispensed for use by a client outside of the program setting.

1236.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

1236.12 	Sec. 36. Minnesota Statutes 2022, section 245G.22, subdivision 6, is amended to read:
1236.13 		Subd. 6.Criteria for unsupervised use. (a) To limit the potential for diversion of 
1236.14 	medication used for the treatment of opioid use disorder to the illicit market, medication 
1236.15 	dispensed to a client for unsupervised use shall be subject to the requirements of this 
1236.16 	subdivision. Any client in an opioid treatment program may receive a single unsupervised 
1236.17 	use dose for a day that the clinic is closed for business, including Sundays and state and 
1236.18 	federal holidays their individualized take-home doses as ordered for days that the clinic is 
1236.19 	closed for business, on one weekend day (e.g., Sunday) and state and federal holidays, no 
1236.20 	matter their length of time in treatment, as allowed under Code of Federal Regulations, title 
1236.21 	42, part 8.12 (i)(1).
1236.22 	(b) For take-home doses beyond those allowed by paragraph (a), a practitioner with
1236.23 	authority to prescribe must review and document the criteria in this paragraph and paragraph 
1236.24 	(c) the Code of Federal Regulations, title 42, part 8.12 (i)(2), when determining whether 
1236.25 	dispensing medication for a client's unsupervised use is safe and it is appropriate to 
1236.26 	implement, increase, or extend the amount of time between visits to the program. The criteria 
1236.27 	are:
1236.28 	(1) absence of recent abuse of drugs including but not limited to opioids, non-narcotics, 
1236.29 	and alcohol;
1236.30 	(2) regularity of program attendance;
1236.31 	(3) absence of serious behavioral problems at the program;
1236.32 	(4) absence of known recent criminal activity such as drug dealing;
1237.1 	(5) stability of the client's home environment and social relationships;
1237.2 	(6) length of time in comprehensive maintenance treatment;
1237.3 	(7) reasonable assurance that unsupervised use medication will be safely stored within 
1237.4 	the client's home; and
1237.5 	(8) whether the rehabilitative benefit the client derived from decreasing the frequency 
1237.6 	of program attendance outweighs the potential risks of diversion or unsupervised use.
1237.7 	(c) The determination, including the basis of the determination must be documented by 
1237.8 	a practitioner in the client's medical record.

1237.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

1237.10 	Sec. 37. Minnesota Statutes 2022, section 245G.22, subdivision 7, is amended to read:
1237.11 		Subd. 7.Restrictions for unsupervised use of methadone hydrochloride. (a) If a 
1237.12 	medical director or prescribing practitioner assesses and, determines, and documents that 
1237.13 	a client meets the criteria in subdivision 6 and may be dispensed a medication used for the 
1237.14 	treatment of opioid addiction, the restrictions in this subdivision must be followed when 
1237.15 	the medication to be dispensed is methadone hydrochloride. The results of the assessment 
1237.16 	must be contained in the client file. The number of unsupervised use medication doses per 
1237.17 	week in paragraphs (b) to (d) is in addition to the number of unsupervised use medication 
1237.18 	doses a client may receive for days the clinic is closed for business as allowed by subdivision 
1237.19 	6, paragraph (a) and that a patient is safely able to manage unsupervised doses of methadone, 
1237.20 	the number of take-home doses the client receives must be limited by the number allowed 
1237.21 	by the Code of Federal Regulations, title 42, part 8.12 (i)(3).
1237.22 	(b) During the first 90 days of treatment, the unsupervised use medication supply must 
1237.23 	be limited to a maximum of a single dose each week and the client shall ingest all other 
1237.24 	doses under direct supervision.
1237.25 	(c) In the second 90 days of treatment, the unsupervised use medication supply must be 
1237.26 	limited to two doses per week.
1237.27 	(d) In the third 90 days of treatment, the unsupervised use medication supply must not 
1237.28 	exceed three doses per week.
1237.29 	(e) In the remaining months of the first year, a client may be given a maximum six-day 
1237.30 	unsupervised use medication supply.
1237.31 	(f) After one year of continuous treatment, a client may be given a maximum two-week 
1237.32 	unsupervised use medication supply.
1238.1 	(g) After two years of continuous treatment, a client may be given a maximum one-month 
1238.2 	unsupervised use medication supply, but must make monthly visits to the program.

1238.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

1238.4 	Sec. 38. Minnesota Statutes 2023 Supplement, section 245G.22, subdivision 17, is amended 
1238.5 	to read:
1238.6 		Subd. 17.Policies and procedures. (a) A license holder must develop and maintain the 
1238.7 	policies and procedures required in this subdivision.
1238.8 	(b) For a program that is not open every day of the year, the license holder must maintain 
1238.9 	a policy and procedure that covers requirements under section 245G.22, subdivisions 6 and 
1238.10 	7. Unsupervised use of medication used for the treatment of opioid use disorder for days 
1238.11 	that the program is closed for business, including but not limited to Sundays on one weekend 
1238.12 	day and state and federal holidays, must meet the requirements under section 245G.22, 
1238.13 	subdivisions 6 and 7.
1238.14 	(c) The license holder must maintain a policy and procedure that includes specific 
1238.15 	measures to reduce the possibility of diversion. The policy and procedure must:
1238.16 	(1) specifically identify and define the responsibilities of the medical and administrative 
1238.17 	staff for performing diversion control measures; and
1238.18 	(2) include a process for contacting no less than five percent of clients who have 
1238.19 	unsupervised use of medication, excluding clients approved solely under subdivision 6, 
1238.20 	paragraph (a), to require clients to physically return to the program each month. The system 
1238.21 	must require clients to return to the program within a stipulated time frame and turn in all 
1238.22 	unused medication containers related to opioid use disorder treatment. The license holder 
1238.23 	must document all related contacts on a central log and the outcome of the contact for each 
1238.24 	client in the client's record. The medical director must be informed of each outcome that 
1238.25 	results in a situation in which a possible diversion issue was identified.
1238.26 	(d) Medication used for the treatment of opioid use disorder must be ordered, 
1238.27 	administered, and dispensed according to applicable state and federal regulations and the 
1238.28 	standards set by applicable accreditation entities. If a medication order requires assessment 
1238.29 	by the person administering or dispensing the medication to determine the amount to be 
1238.30 	administered or dispensed, the assessment must be completed by an individual whose 
1238.31 	professional scope of practice permits an assessment. For the purposes of enforcement of 
1238.32 	this paragraph, the commissioner has the authority to monitor the person administering or 
1238.33 	dispensing the medication for compliance with state and federal regulations and the relevant 
1239.1 	standards of the license holder's accreditation agency and may issue licensing actions 
1239.2 	according to sections 245A.05, 245A.06, and 245A.07, based on the commissioner's 
1239.3 	determination of noncompliance.
1239.4 	(e) A counselor in an opioid treatment program must not supervise more than 50 clients.
1239.5 	(f) Notwithstanding paragraph (e), from July 1, 2023, to June 30, 2024, a counselor in 
1239.6 	an opioid treatment program may supervise up to 60 clients. The license holder may continue 
1239.7 	to serve a client who was receiving services at the program on June 30, 2024, at a counselor 
1239.8 	to client ratio of up to one to 60 and is not required to discharge any clients in order to return 
1239.9 	to the counselor to client ratio of one to 50. The license holder may not, however, serve a 
1239.10 	new client after June 30, 2024, unless the counselor who would supervise the new client is 
1239.11 	supervising fewer than 50 existing clients.

1239.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

1239.13 	Sec. 39. Minnesota Statutes 2023 Supplement, section 256B.064, subdivision 4, is amended 
1239.14 	to read:
1239.15 		Subd. 4.Notice. (a) The department shall serve the notice required under subdivision 2 
1239.16 	by certified mail at using a signature-verified confirmed delivery method to the address 
1239.17 	submitted to the department by the individual or entity. Service is complete upon mailing.
1239.18 	(b) The department shall give notice in writing to a recipient placed in the Minnesota 
1239.19 	restricted recipient program under section 256B.0646 and Minnesota Rules, part 9505.2200. 
1239.20 	The department shall send the notice by first class mail to the recipient's current address on 
1239.21 	file with the department. A recipient placed in the Minnesota restricted recipient program 
1239.22 	may contest the placement by submitting a written request for a hearing to the department 
1239.23 	within 90 days of the notice being mailed.

1239.24 	Sec. 40. Minnesota Statutes 2022, section 256B.0757, subdivision 4a, is amended to read:
1239.25 		Subd. 4a.Behavioral health home services provider requirements. A behavioral 
1239.26 	health home services provider must:
1239.27 	(1) be an enrolled Minnesota Health Care Programs provider;
1239.28 	(2) provide a medical assistance covered primary care or behavioral health service;
1239.29 	(3) utilize an electronic health record;
1239.30 	(4) utilize an electronic patient registry that contains data elements required by the 
1239.31 	commissioner;
1240.1 	(5) demonstrate the organization's capacity to administer screenings approved by the 
1240.2 	commissioner for substance use disorder or alcohol and tobacco use;
1240.3 	(6) demonstrate the organization's capacity to refer an individual to resources appropriate 
1240.4 	to the individual's screening results;
1240.5 	(7) have policies and procedures to track referrals to ensure that the referral met the 
1240.6 	individual's needs;
1240.7 	(8) conduct a brief needs assessment when an individual begins receiving behavioral 
1240.8 	health home services. The brief needs assessment must be completed with input from the 
1240.9 	individual and the individual's identified supports. The brief needs assessment must address 
1240.10 	the individual's immediate safety and transportation needs and potential barriers to 
1240.11 	participating in behavioral health home services;
1240.12 	(9) conduct a health wellness assessment within 60 days after intake that contains all 
1240.13 	required elements identified by the commissioner;
1240.14 	(10) conduct a health action plan that contains all required elements identified by the 
1240.15 	commissioner. The plan must be completed within 90 days after intake and must be updated 
1240.16 	at least once every six months, or more frequently if significant changes to an individual's 
1240.17 	needs or goals occur;
1240.18 	(11) agree to cooperate with and participate in the state's monitoring and evaluation of 
1240.19 	behavioral health home services; and
1240.20 	(12) obtain the individual's written consent to begin receiving behavioral health home 
1240.21 	services using a form approved by the commissioner.

1240.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

1240.23 	Sec. 41. Minnesota Statutes 2022, section 256B.0757, subdivision 4d, is amended to read:
1240.24 		Subd. 4d.Behavioral health home services delivery standards. (a) A behavioral health 
1240.25 	home services provider must meet the following service delivery standards:
1240.26 	(1) establish and maintain processes to support the coordination of an individual's primary 
1240.27 	care, behavioral health, and dental care;
1240.28 	(2) maintain a team-based model of care, including regular coordination and 
1240.29 	communication between behavioral health home services team members;
1241.1 	(3) use evidence-based practices that recognize and are tailored to the medical, social, 
1241.2 	economic, behavioral health, functional impairment, cultural, and environmental factors 
1241.3 	affecting the individual's health and health care choices;
1241.4 	(4) use person-centered planning practices to ensure the individual's health action plan 
1241.5 	accurately reflects the individual's preferences, goals, resources, and optimal outcomes for 
1241.6 	the individual and the individual's identified supports;
1241.7 	(5) use the patient registry to identify individuals and population subgroups requiring 
1241.8 	specific levels or types of care and provide or refer the individual to needed treatment, 
1241.9 	intervention, or services;
1241.10 	(6) utilize the Department of Human Services Partner Portal to identify past and current 
1241.11 	treatment or services and identify potential gaps in care using a tool approved by the 
1241.12 	commissioner;
1241.13 	(7) deliver services consistent with the standards for frequency and face-to-face contact 
1241.14 	required by the commissioner;
1241.15 	(8) ensure that a diagnostic assessment is completed for each individual receiving 
1241.16 	behavioral health home services within six months of the start of behavioral health home 
1241.17 	services;
1241.18 	(9) deliver services in locations and settings that meet the needs of the individual;
1241.19 	(10) provide a central point of contact to ensure that individuals and the individual's 
1241.20 	identified supports can successfully navigate the array of services that impact the individual's 
1241.21 	health and well-being;
1241.22 	(11) have capacity to assess an individual's readiness for change and the individual's 
1241.23 	capacity to integrate new health care or community supports into the individual's life;
1241.24 	(12) offer or facilitate the provision of wellness and prevention education on 
1241.25 	evidenced-based curriculums specific to the prevention and management of common chronic 
1241.26 	conditions;
1241.27 	(13) help an individual set up and prepare for medical, behavioral health, social service, 
1241.28 	or community support appointments, including accompanying the individual to appointments 
1241.29 	as appropriate, and providing follow-up with the individual after these appointments;
1241.30 	(14) offer or facilitate the provision of health coaching related to chronic disease 
1241.31 	management and how to navigate complex systems of care to the individual, the individual's 
1241.32 	family, and identified supports;
1242.1 	(15) connect an individual, the individual's family, and identified supports to appropriate 
1242.2 	support services that help the individual overcome access or service barriers, increase 
1242.3 	self-sufficiency skills, and improve overall health;
1242.4 	(16) provide effective referrals and timely access to services; and
1242.5 	(17) establish a continuous quality improvement process for providing behavioral health 
1242.6 	home services.
1242.7 	(b) The behavioral health home services provider must also create a plan, in partnership 
1242.8 	with the individual and the individual's identified supports, to support the individual after 
1242.9 	discharge from a hospital, residential treatment program, or other setting. The plan must 
1242.10 	include protocols for:
1242.11 	(1) maintaining contact between the behavioral health home services team member, the 
1242.12 	individual, and the individual's identified supports during and after discharge;
1242.13 	(2) linking the individual to new resources as needed;
1242.14 	(3) reestablishing the individual's existing services and community and social supports; 
1242.15 	and
1242.16 	(4) following up with appropriate entities to transfer or obtain the individual's service 
1242.17 	records as necessary for continued care.
1242.18 	(c) If the individual is enrolled in a managed care plan, a behavioral health home services 
1242.19 	provider must:
1242.20 	(1) notify the behavioral health home services contact designated by the managed care 
1242.21 	plan within 30 days of when the individual begins behavioral health home services; and
1242.22 	(2) adhere to the managed care plan communication and coordination requirements 
1242.23 	described in the behavioral health home services manual.
1242.24 	(d) Before terminating behavioral health home services, the behavioral health home 
1242.25 	services provider must:
1242.26 	(1) provide a 60-day notice of termination of behavioral health home services to all 
1242.27 	individuals receiving behavioral health home services, the commissioner, and managed care 
1242.28 	plans, if applicable; and
1242.29 	(2) refer individuals receiving behavioral health home services to a new behavioral 
1242.30 	health home services provider.

1242.31 	EFFECTIVE DATE. This section is effective the day following final enactment.

1243.1 	Sec. 42. Minnesota Statutes 2023 Supplement, section 256D.01, subdivision 1a, is amended 
1243.2 	to read:
1243.3 		Subd. 1a.Standards. (a) A principal objective in providing general assistance is to 
1243.4 	provide for single adults, childless couples, or children as defined in section 256D.02, 
1243.5 	subdivision 2b, ineligible for federal programs who are unable to provide for themselves. 
1243.6 	The minimum standard of assistance determines the total amount of the general assistance 
1243.7 	grant without separate standards for shelter, utilities, or other needs.
1243.8 	(b) The standard of assistance for an assistance unit consisting of a recipient who is 
1243.9 	childless and unmarried or living apart from children and spouse and who does not live with 
1243.10 	a parent or parents or a legal custodian, or consisting of a childless couple, is $350 per month 
1243.11 	effective October 1, 2024, and must be adjusted by a percentage equal to the change in the 
1243.12 	consumer price index as of January 1 every year, beginning October 1, 2025.
1243.13 	(c) For an assistance unit consisting of a single adult who lives with a parent or parents, 
1243.14 	the general assistance standard of assistance is $350 per month effective October 1, 2023
1243.15 	2024, and must be adjusted by a percentage equal to the change in the consumer price index 
1243.16 	as of January 1 every year, beginning October 1, 2025. Benefits received by a responsible 
1243.17 	relative of the assistance unit under the Supplemental Security Income program, a workers' 
1243.18 	compensation program, the Minnesota supplemental aid program, or any other program 
1243.19 	based on the responsible relative's disability, and any benefits received by a responsible 
1243.20 	relative of the assistance unit under the Social Security retirement program, may not be 
1243.21 	counted in the determination of eligibility or benefit level for the assistance unit. Except as 
1243.22 	provided below, the assistance unit is ineligible for general assistance if the available 
1243.23 	resources or the countable income of the assistance unit and the parent or parents with whom 
1243.24 	the assistance unit lives are such that a family consisting of the assistance unit's parent or 
1243.25 	parents, the parent or parents' other family members and the assistance unit as the only or 
1243.26 	additional minor child would be financially ineligible for general assistance. For the purposes 
1243.27 	of calculating the countable income of the assistance unit's parent or parents, the calculation 
1243.28 	methods must follow the provisions under section 256P.06.

1243.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

1243.30 	Sec. 43. Minnesota Statutes 2022, section 256I.04, subdivision 2f, is amended to read:
1243.31 		Subd. 2f.Required services. (a) In licensed and registered authorized settings under 
1243.32 	subdivision 2a, providers shall ensure that participants have at a minimum:
1243.33 	(1) food preparation and service for three nutritional meals a day on site;
1244.1 	(2) a bed, clothing storage, linen, bedding, laundering, and laundry supplies or service;
1244.2 	(3) housekeeping, including cleaning and lavatory supplies or service; and
1244.3 	(4) maintenance and operation of the building and grounds, including heat, water, garbage 
1244.4 	removal, electricity, telephone for the site, cooling, supplies, and parts and tools to repair 
1244.5 	and maintain equipment and facilities.
1244.6 	(b) In addition, when providers serve participants described in subdivision 1, paragraph 
1244.7 	(c), the providers are required to assist the participants in applying for continuing housing 
1244.8 	support payments before the end of the eligibility period.

1244.9 	Sec. 44. Minnesota Statutes 2023 Supplement, section 256I.05, subdivision 1a, is amended 
1244.10 	to read:
1244.11 		Subd. 1a.Supplementary service rates. (a) Subject to the provisions of section 256I.04, 
1244.12 	subdivision 3, the agency may negotiate a payment not to exceed $494.91 for other services 
1244.13 	necessary to provide room and board if the residence is licensed by or registered by the 
1244.14 	Department of Health, or licensed by the Department of Human Services to provide services 
1244.15 	in addition to room and board, and if the provider of services is not also concurrently 
1244.16 	receiving funding for services for a recipient in the residence under the following programs 
1244.17 	or funding sources: (1) home and community-based waiver services under chapter 256S or 
1244.18 	section 256B.0913, 256B.092, or 256B.49; (2) personal care assistance under section 
1244.19 	256B.0659; (3) community first services and supports under section 256B.85; or (4) services 
1244.20 	for adults with mental illness grants under section 245.73. If funding is available for other 
1244.21 	necessary services through a home and community-based waiver under chapter 256S, or 
1244.22 	section 256B.0913, 256B.092, or 256B.49; personal care assistance services under section 
1244.23 	256B.0659; community first services and supports under section 256B.85; or services for 
1244.24 	adults with mental illness grants under section 245.73, then the housing support rate is 
1244.25 	limited to the rate set in subdivision 1. Unless otherwise provided in law, in no case may 
1244.26 	the supplementary service rate exceed $494.91. The registration and licensure requirement 
1244.27 	does not apply to establishments which are exempt from state licensure because they are 
1244.28 	located on Indian reservations and for which the tribe has prescribed health and safety 
1244.29 	requirements. Service payments under this section may be prohibited under rules to prevent 
1244.30 	the supplanting of federal funds with state funds.
1244.31 	(b) The commissioner is authorized to make cost-neutral transfers from the housing 
1244.32 	support fund for beds under this section to other funding programs administered by the 
1244.33 	department after consultation with the agency in which the affected beds are located. The 
1244.34 	commissioner may also make cost-neutral transfers from the housing support fund to agencies 
1245.1 	for beds permanently removed from the housing support census under a plan submitted by 
1245.2 	the agency and approved by the commissioner. The commissioner shall report the amount 
1245.3 	of any transfers under this provision annually to the legislature.
1245.4 	(c) (b) Agencies must not negotiate supplementary service rates with providers of housing 
1245.5 	support that are licensed as board and lodging with special services and that do not encourage 
1245.6 	a policy of sobriety on their premises and make referrals to available community services 
1245.7 	for volunteer and employment opportunities for residents.

1245.8 	Sec. 45. Minnesota Statutes 2023 Supplement, section 256I.05, subdivision 11, is amended 
1245.9 	to read:
1245.10 		Subd. 11.Transfer of emergency shelter funds Cost-neutral transfers from the 
1245.11 	housing support fund. (a) The commissioner is authorized to make cost-neutral transfers 
1245.12 	from the housing support fund for beds under this section to other funding programs 
1245.13 	administered by the department after consultation with the agency in which the affected 
1245.14 	beds are located.
1245.15 	(b) The commissioner may also make cost-neutral transfers from the housing support 
1245.16 	fund to agencies for beds removed from the housing support census under a plan submitted 
1245.17 	by the agency and approved by the commissioner.
1245.18 	(a) (c) The commissioner shall make a cost-neutral transfer of funding from the housing 
1245.19 	support fund to the agency for emergency shelter beds removed from the housing support 
1245.20 	census under a biennial plan submitted by the agency and approved by the commissioner.
1245.21 	Plans submitted under this paragraph must include anticipated and actual outcomes for 
1245.22 	persons experiencing homelessness in emergency shelters.
1245.23 	The plan (d) Plans submitted under paragraph (b) or (c) must describe: (1) anticipated 
1245.24 	and actual outcomes for persons experiencing homelessness in emergency shelters; (2)
1245.25 	improved efficiencies in administration; (3) (2) requirements for individual eligibility; and 
1245.26 	(4) (3) plans for quality assurance monitoring and quality assurance outcomes. The 
1245.27 	commissioner shall review the agency plan plans to monitor implementation and outcomes 
1245.28 	at least biennially, and more frequently if the commissioner deems necessary.
1245.29 	(b) The (e) Funding under paragraph (a) (b), (c), or (d) may be used for the provision 
1245.30 	of room and board or supplemental services according to section 256I.03, subdivisions 14a 
1245.31 	and 14b. Providers must meet the requirements of section 256I.04, subdivisions 2a to 2f. 
1245.32 	Funding must be allocated annually, and the room and board portion of the allocation shall 
1245.33 	be adjusted according to the percentage change in the housing support room and board rate. 
1246.1 	The room and board portion of the allocation shall be determined at the time of transfer.
1246.2 	The commissioner or agency may return beds to the housing support fund with 180 days' 
1246.3 	notice, including financial reconciliation.

1246.4 	Sec. 46. Minnesota Statutes 2022, section 260E.33, subdivision 2, as amended by Laws 
1246.5 	2024, chapter 80, article 8, section 44, is amended to read:
1246.6 		Subd. 2.Request for reconsideration. (a) Except as provided under subdivision 5, an 
1246.7 	individual or facility that the commissioner of human services; commissioner of children, 
1246.8 	youth, and families; a local welfare agency; or the commissioner of education determines 
1246.9 	has maltreated a child, an interested person acting on behalf of the child, regardless of the 
1246.10 	determination, who contests the investigating agency's final determination regarding 
1246.11 	maltreatment may request the investigating agency to reconsider its final determination 
1246.12 	regarding maltreatment. The request for reconsideration must be submitted in writing or 
1246.13 	submitted in the provider licensing and reporting hub to the investigating agency within 15 
1246.14 	calendar days after receipt of notice of the final determination regarding maltreatment or, 
1246.15 	if the request is made by an interested person who is not entitled to notice, within 15 days 
1246.16 	after receipt of the notice by the parent or guardian of the child. If mailed, the request for 
1246.17 	reconsideration must be postmarked and sent to the investigating agency within 15 calendar 
1246.18 	days of the individual's or facility's receipt of the final determination. If the request for 
1246.19 	reconsideration is made by personal service, it must be received by the investigating agency 
1246.20 	within 15 calendar days after the individual's or facility's receipt of the final determination.
1246.21 	Upon implementation of the provider licensing and reporting hub, the individual or facility 
1246.22 	must use the hub to request reconsideration. The reconsideration must be received by the 
1246.23 	commissioner within 15 calendar days of the individual's receipt of the notice of 
1246.24 	disqualification.
1246.25 	(b) An individual who was determined to have maltreated a child under this chapter and 
1246.26 	who was disqualified on the basis of serious or recurring maltreatment under sections 
1246.27 	245C.14 and 245C.15 may request reconsideration of the maltreatment determination and 
1246.28 	the disqualification. The request for reconsideration of the maltreatment determination and 
1246.29 	the disqualification must be submitted within 30 calendar days of the individual's receipt 
1246.30 	of the notice of disqualification under sections 245C.16 and 245C.17. If mailed, the request 
1246.31 	for reconsideration of the maltreatment determination and the disqualification must be 
1246.32 	postmarked and sent to the investigating agency within 30 calendar days of the individual's 
1246.33 	receipt of the maltreatment determination and notice of disqualification. If the request for 
1246.34 	reconsideration is made by personal service, it must be received by the investigating agency 
1246.35 	within 30 calendar days after the individual's receipt of the notice of disqualification.

1247.1 	Sec. 47. Laws 2024, chapter 80, article 2, section 6, subdivision 2, is amended to read:
1247.2 		Subd. 2.Change in ownership. (a) If the commissioner determines that there is a change 
1247.3 	in ownership, the commissioner shall require submission of a new license application. This 
1247.4 	subdivision does not apply to a licensed program or service located in a home where the 
1247.5 	license holder resides. A change in ownership occurs when:
1247.6 	(1) except as provided in paragraph (b), the license holder sells or transfers 100 percent 
1247.7 	of the property, stock, or assets;
1247.8 	(2) the license holder merges with another organization;
1247.9 	(3) the license holder consolidates with two or more organizations, resulting in the 
1247.10 	creation of a new organization;
1247.11 	(4) there is a change to the federal tax identification number associated with the license 
1247.12 	holder; or
1247.13 	(5) except as provided in paragraph (b),all controlling individuals associated with for
1247.14 	the original application license have changed.
1247.15 	(b) Notwithstanding For changes under paragraph (a), clauses (1) and (5) clause (1) or 
1247.16 	(5), no change in ownership has occurred and a new license application is not required if 
1247.17 	at least one controlling individual has been listed affiliated as a controlling individual for 
1247.18 	the license for at least the previous 12 months immediately preceding the change.

1247.19 	EFFECTIVE DATE. This section is effective January 1, 2025.

1247.20 	Sec. 48. Laws 2024, chapter 80, article 2, section 6, subdivision 3, is amended to read:
1247.21 		Subd. 3.Standard change of ownership process. (a) When a change in ownership is 
1247.22 	proposed and the party intends to assume operation without an interruption in service longer 
1247.23 	than 60 days after acquiring the program or service, the license holder must provide the 
1247.24 	commissioner with written notice of the proposed change on a form provided by the 
1247.25 	commissioner at least 60 90 days before the anticipated date of the change in ownership. 
1247.26 	For purposes of this subdivision and subdivision 4 section, "party" means the party that 
1247.27 	intends to operate the service or program.
1247.28 	(b) The party must submit a license application under this chapter on the form and in 
1247.29 	the manner prescribed by the commissioner at least 30 90 days before the change in 
1247.30 	ownership is anticipated to be complete and must include documentation to support the 
1247.31 	upcoming change. The party must comply with background study requirements under chapter 
1247.32 	245C and shall pay the application fee required under section 245A.10.
1248.1 	(c) The commissioner may streamline application procedures when the party is an existing 
1248.2 	license holder under this chapter and is acquiring a program licensed under this chapter or 
1248.3 	service in the same service class as one or more licensed programs or services the party 
1248.4 	operates and those licenses are in substantial compliance. For purposes of this subdivision, 
1248.5 	"substantial compliance" means within the previous 12 months the commissioner did not 
1248.6 	(1) issue a sanction under section 245A.07 against a license held by the party, or (2) make 
1248.7 	a license held by the party conditional according to section 245A.06.
1248.8 	(d) Except when a temporary change in ownership license is issued pursuant to 
1248.9 	subdivision 4 While the standard change of ownership process is pending, the existing 
1248.10 	license holder is solely remains responsible for operating the program according to applicable 
1248.11 	laws and rules until a license under this chapter is issued to the party.
1248.12 	(e) If a licensing inspection of the program or service was conducted within the previous 
1248.13 	12 months and the existing license holder's license record demonstrates substantial 
1248.14 	compliance with the applicable licensing requirements, the commissioner may waive the 
1248.15 	party's inspection required by section 245A.04, subdivision 4. The party must submit to the 
1248.16 	commissioner (1) proof that the premises was inspected by a fire marshal or that the fire 
1248.17 	marshal deemed that an inspection was not warranted, and (2) proof that the premises was 
1248.18 	inspected for compliance with the building code or that no inspection was deemed warranted.
1248.19 	(f) If the party is seeking a license for a program or service that has an outstanding action 
1248.20 	under section 245A.06 or 245A.07, the party must submit a letter as part of the application 
1248.21 	process identifying how the party has or will come into full compliance with the licensing 
1248.22 	requirements.
1248.23 	(g) The commissioner shall evaluate the party's application according to section 245A.04, 
1248.24 	subdivision 6. If the commissioner determines that the party has remedied or demonstrates 
1248.25 	the ability to remedy the outstanding actions under section 245A.06 or 245A.07 and has 
1248.26 	determined that the program otherwise complies with all applicable laws and rules, the 
1248.27 	commissioner shall issue a license or conditional license under this chapter. A conditional 
1248.28 	license issued under this section is final and not subject to reconsideration under section 
1248.29 	142B.16, subdivision 4. The conditional license remains in effect until the commissioner 
1248.30 	determines that the grounds for the action are corrected or no longer exist.
1248.31 	(h) The commissioner may deny an application as provided in section 245A.05. An 
1248.32 	applicant whose application was denied by the commissioner may appeal the denial according 
1248.33 	to section 245A.05.
1249.1 	(i) This subdivision does not apply to a licensed program or service located in a home 
1249.2 	where the license holder resides.

1249.3 	EFFECTIVE DATE. This section is effective January 1, 2025.

1249.4 	Sec. 49. Laws 2024, chapter 80, article 2, section 6, is amended by adding a subdivision 
1249.5 	to read:
1249.6 		Subd. 3a.Emergency change in ownership process.  (a) In the event of a death of a 
1249.7 	license holder or sole controlling individual or a court order or other event that results in 
1249.8 	the license holder being inaccessible or unable to operate the program or service, a party 
1249.9 	may submit a request to the commissioner to allow the party to assume operation of the 
1249.10 	program or service under an emergency change in ownership process to ensure persons 
1249.11 	continue to receive services while the commissioner evaluates the party's license application.
1249.12 	(b) To request the emergency change of ownership process, the party must immediately:
1249.13 	(1) notify the commissioner of the event resulting in the inability of the license holder 
1249.14 	to operate the program and of the party's intent to assume operations; and
1249.15 	(2) provide the commissioner with documentation that demonstrates the party has a legal 
1249.16 	or legitimate ownership interest in the program or service if applicable and is able to operate 
1249.17 	the program or service.
1249.18 	(c) If the commissioner approves the party to continue operating the program or service 
1249.19 	under an emergency change in ownership process, the party must:
1249.20 	(1) request to be added as a controlling individual or license holder to the existing license;
1249.21 	(2) notify persons receiving services of the emergency change in ownership in a manner 
1249.22 	approved by the commissioner;
1249.23 	(3) submit an application for a new license within 30 days of approval;
1249.24 	(4) comply with the background study requirements under chapter 245C; and
1249.25 	(5) pay the application fee required under section 142B.12.
1249.26 	(d) While the emergency change of ownership process is pending, a party approved 
1249.27 	under this subdivision is responsible for operating the program under the existing license 
1249.28 	according to applicable laws and rules until a new license under this chapter is issued.
1249.29 	(e) The provisions in subdivision 3, paragraphs (c), (g), and (h), apply to this subdivision.
1249.30 	(f) Once a party is issued a new license or has decided not to seek a new license, the 
1249.31 	commissioner must close the existing license.
1250.1 	(g) This subdivision applies to any program or service licensed under this chapter.

1250.2 	EFFECTIVE DATE. This section is effective January 1, 2025.

1250.3 	Sec. 50. Laws 2024, chapter 80, article 2, section 6, is amended by adding a subdivision 
1250.4 	to read:
1250.5 		Subd. 5.Failure to comply. If the commissioner finds that the applicant or license holder 
1250.6 	has not fully complied with this section, the commissioner may impose a licensing sanction 
1250.7 	under section 142B.15, 142B.16, or 142B.18.

1250.8 	EFFECTIVE DATE. This section is effective January 1, 2025.

1250.9 	Sec. 51. Laws 2024, chapter 80, article 2, section 10, subdivision 1, is amended to read:
1250.10 		Subdivision 1.Sanctions; appeals; license. (a) In addition to making a license conditional 
1250.11 	under section 142B.16, the commissioner may suspend or revoke the license, impose a fine, 
1250.12 	or secure an injunction against the continuing operation of the program of a license holder 
1250.13 	who:
1250.14 	(1) does not comply with applicable law or rule;
1250.15 	(2) has nondisqualifying background study information, as described in section 245C.05, 
1250.16 	subdivision 4, that reflects on the license holder's ability to safely provide care to foster 
1250.17 	children; or
1250.18 	(3) has an individual living in the household where the licensed services are provided 
1250.19 	or is otherwise subject to a background study, and the individual has nondisqualifying 
1250.20 	background study information, as described in section 245C.05, subdivision 4, that reflects 
1250.21 	on the license holder's ability to safely provide care to foster children.
1250.22 	When applying sanctions authorized under this section, the commissioner shall consider 
1250.23 	the nature, chronicity, or severity of the violation of law or rule and the effect of the violation 
1250.24 	on the health, safety, or rights of persons served by the program.
1250.25 	(b) If a license holder appeals the suspension or revocation of a license and the license 
1250.26 	holder continues to operate the program pending a final order on the appeal, the commissioner 
1250.27 	shall issue the license holder a temporary provisional license. Unless otherwise specified 
1250.28 	by the commissioner, variances in effect on the date of the license sanction under appeal 
1250.29 	continue under the temporary provisional license. The commissioner may include terms the 
1250.30 	license holder must follow pending a final order on the appeal.If a license holder fails to 
1250.31 	comply with applicable law or rule while operating under a temporary provisional license, 
1251.1 	the commissioner may impose additional sanctions under this section and section 142B.16
1251.2 	and may terminate any prior variance. If a temporary provisional license is set to expire, a 
1251.3 	new temporary provisional license shall be issued to the license holder upon payment of 
1251.4 	any fee required under section 142B.12. The temporary provisional license shall expire on 
1251.5 	the date the final order is issued. If the license holder prevails on the appeal, a new 
1251.6 	nonprovisional license shall be issued for the remainder of the current license period.
1251.7 	(c) If a license holder is under investigation and the license issued under this chapter is 
1251.8 	due to expire before completion of the investigation, the program shall be issued a new 
1251.9 	license upon completion of the reapplication requirements and payment of any applicable 
1251.10 	license fee. Upon completion of the investigation, a licensing sanction may be imposed 
1251.11 	against the new license under this section or section 142B.16 or 142B.20.
1251.12 	(d) Failure to reapply or closure of a license issued under this chapter by the license 
1251.13 	holder prior to the completion of any investigation shall not preclude the commissioner 
1251.14 	from issuing a licensing sanction under this section or section 142B.16 at the conclusion of 
1251.15 	the investigation.

1251.16 	EFFECTIVE DATE. This section is effective January 1, 2025.

1251.17 	Sec. 52. REVISOR INSTRUCTION.
 1251.18 	The revisor of statutes shall renumber Minnesota Statutes, section 256D.21, as Minnesota 
1251.19 	Statutes, section 261.004.

1251.20 	Sec. 53. REPEALER.
 1251.21 	(a) Minnesota Statutes 2022, sections 256D.19, subdivisions 1 and 2; 256D.20, 
1251.22 	subdivisions 1, 2, 3, and 4; and 256D.23, subdivisions 1, 2, and 3, are repealed.
1251.23 	(b) Minnesota Statutes 2022, section 245C.125, is repealed.
1251.24 	(c) Minnesota Statutes 2023 Supplement, section 245C.08, subdivision 2, is repealed.
1251.25 	(d) Laws 2024, chapter 80, article 2, section 6, subdivision 4, is repealed.

1251.26 	EFFECTIVE DATE. Paragraph (a) is effective the day following final enactment.

1252.1 	ARTICLE 63
1252.2 	OFFICE OF EMERGENCY MEDICAL SERVICES

1252.3 	Section 1. Minnesota Statutes 2022, section 144E.001, is amended by adding a subdivision 
1252.4 	to read:
1252.5 		Subd. 16.Director. "Director" means the director of the Office of Emergency Medical 
1252.6 	Services.

1252.7 	EFFECTIVE DATE. This section is effective January 1, 2025.

1252.8 	Sec. 2. Minnesota Statutes 2022, section 144E.001, is amended by adding a subdivision 
1252.9 	to read:
1252.10 		Subd. 17.Office. "Office" means the Office of Emergency Medical Services.

1252.11 	EFFECTIVE DATE. This section is effective January 1, 2025.

1252.12 	Sec. 3. [144E.011] OFFICE OF EMERGENCY MEDICAL SERVICES.
1252.13 		Subdivision 1.Establishment. The Office of Emergency Medical Services is established 
1252.14 	with the powers and duties established in law. In administering this chapter, the office must 
1252.15 	promote the public health and welfare, protect the safety of the public, and effectively 
1252.16 	regulate and support the operation of the emergency medical services system in this state.
1252.17 		Subd. 2.Director. The governor must appoint a director for the office with the advice 
1252.18 	and consent of the senate. The director must be in the unclassified service and must serve 
1252.19 	at the pleasure of the governor. The salary of the director shall be determined according to 
1252.20 	section 15A.0815. The director shall direct the activities of the office.
1252.21 		Subd. 3.Powers and duties. The director has the following powers and duties:
1252.22 	(1) to administer and enforce this chapter and adopt rules as needed to implement this 
1252.23 	chapter. Rules for which notice is published in the State Register before July 1, 2026, may 
1252.24 	be adopted using the expedited rulemaking process in section 14.389;
1252.25 	(2) to license ambulance services in the state and regulate their operation;
1252.26 	(3) to establish and modify primary service areas;
1252.27 	(4) to designate an ambulance service as authorized to provide service in a primary 
1252.28 	service area and to remove an ambulance service's authorization to provide service in a 
1252.29 	primary service area;
1252.30 	(5) to register medical response units in the state and regulate their operation;
1253.1 	(6) to certify emergency medical technicians, advanced emergency medical technicians, 
1253.2 	community emergency medical technicians, paramedics, and community paramedics and 
1253.3 	to register emergency medical responders;
1253.4 	(7) to approve education programs for ambulance service personnel and emergency 
1253.5 	medical responders and to administer qualifications for instructors of education programs;
1253.6 	(8) to administer grant programs related to emergency medical services;
1253.7 	(9) to report to the legislature, by February 15 each year, on the work of the office and 
1253.8 	the advisory councils in the previous calendar year and with recommendations for any 
1253.9 	needed policy changes related to emergency medical services, including but not limited to 
1253.10 	improving access to emergency medical services, improving service delivery by ambulance 
1253.11 	services and medical response units, and improving the effectiveness of the state's emergency 
1253.12 	medical services system. The director must develop the reports and recommendations in 
1253.13 	consultation with the office's deputy directors and advisory councils;
1253.14 	(10) to investigate complaints against and hold hearings regarding ambulance services, 
1253.15 	ambulance service personnel, and emergency medical responders and to impose disciplinary 
1253.16 	action or otherwise resolve complaints; and
1253.17 	(11) to perform other duties related to the provision of emergency medical services in 
1253.18 	the state.
1253.19 		Subd. 4.Employees. The director may employ personnel in the classified service and 
1253.20 	unclassified personnel as necessary to carry out the duties of this chapter.
1253.21 		Subd. 5.Work plan. The director must prepare a work plan to guide the work of the 
1253.22 	office. The work plan must be updated biennially.

1253.23 	EFFECTIVE DATE. This section is effective January 1, 2025.

1253.24 	Sec. 4. [144E.015] MEDICAL SERVICES DIVISION.
1253.25 	A Medical Services Division is created in the Office of Emergency Medical Services. 
1253.26 	The Medical Services Division shall be under the supervision of a deputy director of medical 
1253.27 	services appointed by the director. The deputy director of medical services must be a 
1253.28 	physician licensed under chapter 147. The deputy director, under the direction of the director, 
1253.29 	shall enforce and coordinate the laws, rules, and policies assigned by the director, which 
1253.30 	may include overseeing the clinical aspects of prehospital medical care and education 
1253.31 	programs for emergency medical service personnel.

1253.32 	EFFECTIVE DATE. This section is effective January 1, 2025.

1254.1 	Sec. 5. [144E.016] AMBULANCE SERVICES DIVISION.
1254.2 	An Ambulance Services Division is created in the Office of Emergency Medical Services. 
1254.3 	The Ambulance Services Division shall be under the supervision of a deputy director of 
1254.4 	ambulance services appointed by the director. The deputy director, under the direction of 
1254.5 	the director, shall enforce and coordinate the laws, rules, and policies assigned by the director, 
1254.6 	which may include operating standards and licensing of ambulance services; registration 
1254.7 	and operation of medical response units; establishment and modification of primary service 
1254.8 	areas; authorization of ambulance services to provide service in a primary service area and 
1254.9 	revocation of such authorization; coordination of ambulance services within regions and 
1254.10 	across the state; and administration of grants.

1254.11 	EFFECTIVE DATE. This section is effective January 1, 2025.

1254.12 	Sec. 6. [144E.017] EMERGENCY MEDICAL SERVICE PROVIDERS DIVISION.
1254.13 	An Emergency Medical Service Providers Division is created in the Office of Emergency 
1254.14 	Medical Services. The Emergency Medical Service Providers Division shall be under the 
1254.15 	supervision of a deputy director of emergency medical service providers appointed by the 
1254.16 	director. The deputy director, under the direction of the director, shall enforce and coordinate 
1254.17 	the laws, rules, and policies assigned by the director, which may include certification and 
1254.18 	registration of individual emergency medical service providers; overseeing worker safety, 
1254.19 	worker well-being, and working conditions; implementation of education programs; and 
1254.20 	administration of grants.

1254.21 	EFFECTIVE DATE. This section is effective January 1, 2025.

1254.22 	Sec. 7. [144E.03] EMERGENCY MEDICAL SERVICES ADVISORY COUNCIL.
1254.23 		Subdivision 1.Establishment; membership. The Emergency Medical Services Advisory 
1254.24 	Council is established and consists of the following members:
1254.25 	(1) one emergency medical technician currently practicing with a licensed ambulance 
1254.26 	service, appointed by the Minnesota Ambulance Association;
1254.27 	(2) one paramedic currently practicing with a licensed ambulance service or a medical 
1254.28 	response unit, appointed jointly by the Minnesota Professional Fire Fighters Association 
1254.29 	and the Minnesota Ambulance Association;
1254.30 	(3) one medical director of a licensed ambulance service, appointed by the National 
1254.31 	Association of EMS Physicians, Minnesota Chapter;
1255.1 	(4) one firefighter currently serving as an emergency medical responder, appointed by 
1255.2 	the Minnesota State Fire Chiefs Association;
1255.3 	(5) one registered nurse who is certified or currently practicing as a flight nurse, appointed 
1255.4 	jointly by the regional emergency services boards of the designated regional emergency 
1255.5 	medical services systems;
1255.6 	(6) one hospital administrator, appointed by the Minnesota Hospital Association;
1255.7 	(7) one social worker, appointed by the Board of Social Work;
1255.8 	(8) one member of a federally recognized Tribal Nation in Minnesota, appointed by the 
1255.9 	Minnesota Indian Affairs Council;
1255.10 	(9) three public members, appointed by the governor. At least one of the public members 
1255.11 	must reside outside the metropolitan counties listed in section 473.121, subdivision 4;
1255.12 	(10) one member with experience working as an employee organization representative 
1255.13 	representing emergency medical service providers, appointed by an employee organization 
1255.14 	representing emergency medical service providers;
1255.15 	(11) one member representing a local government, appointed by the Coalition of Greater 
1255.16 	Minnesota Cities;
1255.17 	(12) one member representing a local government in the seven-county metropolitan area, 
1255.18 	appointed by the League of Minnesota Cities;
1255.19 	(13) two members of the house of representatives and two members of the senate, 
1255.20 	appointed according to subdivision 2; and
1255.21 	(14) the commissioner of health and commissioner of public safety or their designees 
1255.22 	as ex officio members.
1255.23 		Subd. 2.Legislative members. The speaker of the house and the house minority leader 
1255.24 	must each appoint one member of the house of representatives to serve on the advisory 
1255.25 	council. The senate majority leader and the senate minority leader must each appoint one 
1255.26 	member of the senate to serve on the advisory council. Legislative members appointed under 
1255.27 	this subdivision serve until successors are appointed. Legislative members may receive per 
1255.28 	diem compensation and reimbursement for expenses according to the rules of their respective 
1255.29 	bodies.
1255.30 		Subd. 3.Terms, compensation, removal, vacancies, and expiration. Compensation 
1255.31 	and reimbursement for expenses for members appointed under subdivision 1, clauses (1) 
1255.32 	to (12); removal of members; filling of vacancies of members; and, except for initial 
1256.1 	appointments, membership terms are governed by section 15.059. Notwithstanding section 
1256.2 	15.059, subdivision 6, the advisory council does not expire.
1256.3 		Subd. 4.Officers; meetings. (a) The advisory council must elect a chair and vice-chair 
1256.4 	from among its membership and may elect other officers as the advisory council deems 
1256.5 	necessary.
1256.6 	(b) The advisory council must meet quarterly or at the call of the chair.
1256.7 	(c) Meetings of the advisory council are subject to chapter 13D.
1256.8 		Subd. 5.Duties. The advisory council must review and make recommendations to the 
1256.9 	director and the deputy director of ambulance services on the administration of this chapter; 
1256.10 	the regulation of ambulance services and medical response units; the operation of the 
1256.11 	emergency medical services system in the state; and other topics as directed by the director.

1256.12 	EFFECTIVE DATE. This section is effective January 1, 2025.

1256.13 	Sec. 8. [144E.035] EMERGENCY MEDICAL SERVICES PHYSICIAN ADVISORY 
1256.14 	COUNCIL.
1256.15 		Subdivision 1.Establishment; membership. The Emergency Medical Services Physician 
1256.16 	Advisory Council is established and consists of the following members:
1256.17 	(1) eight physicians who meet the qualifications for medical directors in section 144E.265, 
1256.18 	subdivision 1, with one physician appointed by each of the regional emergency services 
1256.19 	boards of the designated regional emergency medical services systems;
1256.20 	(2) one physician who meets the qualifications for medical directors in section 144E.265, 
1256.21 	subdivision 1, appointed by the Minnesota State Fire Chiefs Association;
1256.22 	(3) one physician who is board-certified in pediatrics, appointed by the Minnesota 
1256.23 	Emergency Medical Services for Children program; and
1256.24 	(4) the medical director member of the Emergency Medical Services Advisory Council 
1256.25 	appointed under section 144E.03, subdivision 1, clause (3).
1256.26 		Subd. 2.Terms, compensation, removal, vacancies, and expiration. Compensation 
1256.27 	and reimbursement for expenses, removal of members, filling of vacancies of members, 
1256.28 	and, except for initial appointments, membership terms are governed by section 15.059. 
1256.29 	Notwithstanding section 15.059, subdivision 6, the advisory council shall not expire.
1256.30 		Subd. 3.Officers; meetings. (a) The advisory council must elect a chair and vice-chair 
1256.31 	from among its membership and may elect other officers as it deems necessary.
1257.1 	(b) The advisory council must meet twice per year or upon the call of the chair.
1257.2 	(c) Meetings of the advisory council are subject to chapter 13D.
1257.3 		Subd. 4.Duties. The advisory council must:
1257.4 	(1) review and make recommendations to the director and deputy director of medical 
1257.5 	services on clinical aspects of prehospital medical care. In doing so, the advisory council 
1257.6 	must incorporate information from medical literature, advances in bedside clinical practice, 
1257.7 	and advisory council member experience; and
1257.8 	(2) serve as subject matter experts for the director and deputy director of medical services 
1257.9 	on evolving topics in clinical medicine, including but not limited to infectious disease, 
1257.10 	pharmaceutical and equipment shortages, and implementation of new therapeutics.

1257.11 	EFFECTIVE DATE. This section is effective January 1, 2025.

1257.12 	Sec. 9. [144E.04] LABOR AND EMERGENCY MEDICAL SERVICE PROVIDERS 
1257.13 	ADVISORY COUNCIL.
1257.14 		Subdivision 1.Establishment; membership. The Labor and Emergency Medical Service 
1257.15 	Providers Advisory Council is established and consists of the following members:
1257.16 	(1) one emergency medical service provider of any type from each of the designated 
1257.17 	regional emergency medical services systems, appointed by their respective regional 
1257.18 	emergency services boards;
1257.19 	(2) one emergency medical technician instructor, appointed by an employee organization 
1257.20 	representing emergency medical service providers;
1257.21 	(3) two members with experience working as an employee organization representative 
1257.22 	representing emergency medical service providers, appointed by an employee organization 
1257.23 	representing emergency medical service providers;
1257.24 	(4) one emergency medical service provider based in a fire department, appointed jointly 
1257.25 	by the Minnesota State Fire Chiefs Association and the Minnesota Professional Fire Fighters 
1257.26 	Association; and
1257.27 	(5) one emergency medical service provider not based in a fire department, appointed 
1257.28 	by the League of Minnesota Cities.
1257.29 		Subd. 2.Terms, compensation, removal, vacancies, and expiration. Compensation 
1257.30 	and reimbursement for expenses for members appointed under subdivision 1; removal of 
1257.31 	members; filling of vacancies of members; and, except for initial appointments, membership 
1258.1 	terms are governed by section 15.059. Notwithstanding section 15.059, subdivision 6, the 
1258.2 	Labor and Emergency Medical Service Providers Advisory Council does not expire.
1258.3 		Subd. 3.Officers; meetings. (a) The Labor and Emergency Medical Service Providers 
1258.4 	Advisory Council must elect a chair and vice-chair from among its membership and may 
1258.5 	elect other officers as the advisory council deems necessary.
1258.6 	(b) The Labor and Emergency Medical Service Providers Advisory Council must meet 
1258.7 	quarterly or at the call of the chair.
1258.8 	(c) Meetings of the Labor and Emergency Medical Service Providers Advisory Council 
1258.9 	are subject to chapter 13D.
1258.10 		Subd. 4.Duties. The Labor and Emergency Medical Service Providers Advisory Council 
1258.11 	must review and make recommendations to the director and deputy director of emergency 
1258.12 	medical service providers on the laws, rules, and policies assigned to the Emergency Medical 
1258.13 	Service Providers Division and other topics as directed by the director.

1258.14 	EFFECTIVE DATE. This section is effective January 1, 2025.

1258.15 	Sec. 10. Minnesota Statutes 2022, section 144E.16, subdivision 5, is amended to read:
1258.16 		Subd. 5.Local government's powers. (a) Local units of government may, with the 
1258.17 	approval of the board director, establish standards for ambulance services which impose 
1258.18 	additional requirements upon such services. Local units of government intending to impose 
1258.19 	additional requirements shall consider whether any benefit accruing to the public health 
1258.20 	would outweigh the costs associated with the additional requirements.
1258.21 	(b) Local units of government that desire to impose additional requirements shall, prior 
1258.22 	to adoption of relevant ordinances, rules, or regulations, furnish the board director with a 
1258.23 	copy of the proposed ordinances, rules, or regulations, along with information that 
1258.24 	affirmatively substantiates that the proposed ordinances, rules, or regulations:
1258.25 	(1) will in no way conflict with the relevant rules of the board office;
1258.26 	(2) will establish additional requirements tending to protect the public health;
1258.27 	(3) will not diminish public access to ambulance services of acceptable quality; and
1258.28 	(4) will not interfere with the orderly development of regional systems of emergency 
1258.29 	medical care.
1258.30 	(c) The board director shall base any decision to approve or disapprove local standards 
1258.31 	upon whether or not the local unit of government in question has affirmatively substantiated 
1259.1 	that the proposed ordinances, rules, or regulations meet the criteria specified in paragraph 
1259.2 	(b).

1259.3 	EFFECTIVE DATE. This section is effective January 1, 2025.

1259.4 	Sec. 11. Minnesota Statutes 2022, section 144E.19, subdivision 3, is amended to read:
1259.5 		Subd. 3.Temporary suspension. (a) In addition to any other remedy provided by law, 
1259.6 	the board director may temporarily suspend the license of a licensee after conducting a 
1259.7 	preliminary inquiry to determine whether the boarddirector believes that the licensee has 
1259.8 	violated a statute or rule that the board director is empowered to enforce and determining 
1259.9 	that the continued provision of service by the licensee would create an imminent risk to 
1259.10 	public health or harm to others.
1259.11 	(b) A temporary suspension order prohibiting a licensee from providing ambulance 
1259.12 	service shall give notice of the right to a preliminary hearing according to paragraph (d) 
1259.13 	and shall state the reasons for the entry of the temporary suspension order.
1259.14 	(c) Service of a temporary suspension order is effective when the order is served on the 
1259.15 	licensee personally or by certified mail, which is complete upon receipt, refusal, or return 
1259.16 	for nondelivery to the most recent address provided to the board director for the licensee.
1259.17 	(d) At the time the board director issues a temporary suspension order, the board director
1259.18 	shall schedule a hearing, to be held before a group of its members designated by the board,
1259.19 	that shall begin within 60 days after issuance of the temporary suspension order or within 
1259.20 	15 working days of the date of the board's director's receipt of a request for a hearing from 
1259.21 	a licensee, whichever is sooner. The hearing shall be on the sole issue of whether there is 
1259.22 	a reasonable basis to continue, modify, or lift the temporary suspension. A hearing under 
1259.23 	this paragraph is not subject to chapter 14.
1259.24 	(e) Evidence presented by the board director or licensee may be in the form of an affidavit. 
1259.25 	The licensee or the licensee's designee may appear for oral argument.
1259.26 	(f) Within five working days of the hearing, the board director shall issue its order and, 
1259.27 	if the suspension is continued, notify the licensee of the right to a contested case hearing 
1259.28 	under chapter 14.
1259.29 	(g) If a licensee requests a contested case hearing within 30 days after receiving notice 
1259.30 	under paragraph (f), the boarddirector shall initiate a contested case hearing according to 
1259.31 	chapter 14. The administrative law judge shall issue a report and recommendation within 
1259.32 	30 days after the closing of the contested case hearing record. The board director shall issue 
1259.33 	a final order within 30 days after receipt of the administrative law judge's report.

1260.1 	EFFECTIVE DATE. This section is effective January 1, 2025.

1260.2 	Sec. 12. Minnesota Statutes 2022, section 144E.27, subdivision 5, is amended to read:
1260.3 		Subd. 5.Denial, suspension, revocation. (a) The boarddirector may deny, suspend, 
1260.4 	revoke, place conditions on, or refuse to renew the registration of an individual who the 
1260.5 	boarddirector determines:
1260.6 	(1) violates sections 144E.001 to 144E.33 or the rules adopted under those sections, an 
1260.7 	agreement for corrective action, or an order that the boarddirector issued or is otherwise 
1260.8 	empowered to enforce;
1260.9 	(2) misrepresents or falsifies information on an application form for registration;
1260.10 	(3) is convicted or pleads guilty or nolo contendere to any felony; any gross misdemeanor 
1260.11 	relating to assault, sexual misconduct, theft, or the illegal use of drugs or alcohol; or any 
1260.12 	misdemeanor relating to assault, sexual misconduct, theft, or the illegal use of drugs or 
1260.13 	alcohol;
1260.14 	(4) is actually or potentially unable to provide emergency medical services with 
1260.15 	reasonable skill and safety to patients by reason of illness, use of alcohol, drugs, chemicals, 
1260.16 	or any other material, or as a result of any mental or physical condition;
1260.17 	(5) engages in unethical conduct, including, but not limited to, conduct likely to deceive, 
1260.18 	defraud, or harm the public, or demonstrating a willful or careless disregard for the health, 
1260.19 	welfare, or safety of the public;
1260.20 	(6) maltreats or abandons a patient;
1260.21 	(7) violates any state or federal controlled substance law;
1260.22 	(8) engages in unprofessional conduct or any other conduct which has the potential for 
1260.23 	causing harm to the public, including any departure from or failure to conform to the 
1260.24 	minimum standards of acceptable and prevailing practice without actual injury having to 
1260.25 	be established;
1260.26 	(9) provides emergency medical services under lapsed or nonrenewed credentials;
1260.27 	(10) is subject to a denial, corrective, disciplinary, or other similar action in another 
1260.28 	jurisdiction or by another regulatory authority;
1260.29 	(11) engages in conduct with a patient that is sexual or may reasonably be interpreted 
1260.30 	by the patient as sexual, or in any verbal behavior that is seductive or sexually demeaning 
1260.31 	to a patient; or
1261.1 	(12) makes a false statement or knowingly provides false information to the board
1261.2 	director, or fails to cooperate with an investigation of the boarddirector as required by 
1261.3 	section 144E.30.; or
1261.4 	(13) fails to engage with the health professionals services program or diversion program 
1261.5 	required under section 144E.287 after being referred to the program, violates the terms of 
1261.6 	the program participation agreement, or leaves the program except upon fulfilling the terms 
1261.7 	for successful completion of the program as set forth in the participation agreement.
1261.8 	(b) Before taking action under paragraph (a), the boarddirector shall give notice to an 
1261.9 	individual of the right to a contested case hearing under chapter 14. If an individual requests 
1261.10 	a contested case hearing within 30 days after receiving notice, the boarddirector shall initiate 
1261.11 	a contested case hearing according to chapter 14.
1261.12 	(c) The administrative law judge shall issue a report and recommendation within 30 
1261.13 	days after closing the contested case hearing record. The boarddirector shall issue a final 
1261.14 	order within 30 days after receipt of the administrative law judge's report.
1261.15 	(d) After six months from the board'sdirector's decision to deny, revoke, place conditions 
1261.16 	on, or refuse renewal of an individual's registration for disciplinary action, the individual 
1261.17 	shall have the opportunity to apply to the boarddirector for reinstatement.

1261.18 	EFFECTIVE DATE. This section is effective January 1, 2025.

1261.19 	Sec. 13. Minnesota Statutes 2022, section 144E.28, subdivision 5, is amended to read:
1261.20 		Subd. 5.Denial, suspension, revocation. (a) The boarddirector may deny certification 
1261.21 	or take any action authorized in subdivision 4 against an individual who the boarddirector 
1261.22 	determines:
1261.23 	(1) violates sections 144E.001 to 144E.33 or the rules adopted under those sections, or 
1261.24 	an order that the boarddirector issued or is otherwise authorized or empowered to enforce, 
1261.25 	or agreement for corrective action;
1261.26 	(2) misrepresents or falsifies information on an application form for certification;
1261.27 	(3) is convicted or pleads guilty or nolo contendere to any felony; any gross misdemeanor 
1261.28 	relating to assault, sexual misconduct, theft, or the illegal use of drugs or alcohol; or any 
1261.29 	misdemeanor relating to assault, sexual misconduct, theft, or the illegal use of drugs or 
1261.30 	alcohol;
1262.1 	(4) is actually or potentially unable to provide emergency medical services with 
1262.2 	reasonable skill and safety to patients by reason of illness, use of alcohol, drugs, chemicals, 
1262.3 	or any other material, or as a result of any mental or physical condition;
1262.4 	(5) engages in unethical conduct, including, but not limited to, conduct likely to deceive, 
1262.5 	defraud, or harm the public or demonstrating a willful or careless disregard for the health, 
1262.6 	welfare, or safety of the public;
1262.7 	(6) maltreats or abandons a patient;
1262.8 	(7) violates any state or federal controlled substance law;
1262.9 	(8) engages in unprofessional conduct or any other conduct which has the potential for 
1262.10 	causing harm to the public, including any departure from or failure to conform to the 
1262.11 	minimum standards of acceptable and prevailing practice without actual injury having to 
1262.12 	be established;
1262.13 	(9) provides emergency medical services under lapsed or nonrenewed credentials;
1262.14 	(10) is subject to a denial, corrective, disciplinary, or other similar action in another 
1262.15 	jurisdiction or by another regulatory authority;
1262.16 	(11) engages in conduct with a patient that is sexual or may reasonably be interpreted 
1262.17 	by the patient as sexual, or in any verbal behavior that is seductive or sexually demeaning 
1262.18 	to a patient; or
1262.19 	(12) makes a false statement or knowingly provides false information to the boarddirector 
1262.20 	or fails to cooperate with an investigation of the boarddirector as required by section 
1262.21 	144E.30.; or
1262.22 	(13) fails to engage with the health professionals services program or diversion program 
1262.23 	required under section 144E.287 after being referred to the program, violates the terms of 
1262.24 	the program participation agreement, or leaves the program except upon fulfilling the terms 
1262.25 	for successful completion of the program as set forth in the participation agreement.
1262.26 	(b) Before taking action under paragraph (a), the boarddirector shall give notice to an 
1262.27 	individual of the right to a contested case hearing under chapter 14. If an individual requests 
1262.28 	a contested case hearing within 30 days after receiving notice, the boarddirector shall initiate 
1262.29 	a contested case hearing according to chapter 14 and no disciplinary action shall be taken 
1262.30 	at that time.
1263.1 	(c) The administrative law judge shall issue a report and recommendation within 30 
1263.2 	days after closing the contested case hearing record. The boarddirector shall issue a final 
1263.3 	order within 30 days after receipt of the administrative law judge's report.
1263.4 	(d) After six months from the board'sdirector's decision to deny, revoke, place conditions 
1263.5 	on, or refuse renewal of an individual's certification for disciplinary action, the individual 
1263.6 	shall have the opportunity to apply to the boarddirector for reinstatement.

1263.7 	EFFECTIVE DATE. This section is effective January 1, 2025.

1263.8 	Sec. 14. Minnesota Statutes 2022, section 144E.28, subdivision 6, is amended to read:
1263.9 		Subd. 6.Temporary suspension. (a) In addition to any other remedy provided by law, 
1263.10 	the board director may temporarily suspend the certification of an individual after conducting 
1263.11 	a preliminary inquiry to determine whether the board director believes that the individual 
1263.12 	has violated a statute or rule that the board director is empowered to enforce and determining 
1263.13 	that the continued provision of service by the individual would create an imminent risk to 
1263.14 	public health or harm to others.
1263.15 	(b) A temporary suspension order prohibiting an individual from providing emergency 
1263.16 	medical care shall give notice of the right to a preliminary hearing according to paragraph 
1263.17 	(d) and shall state the reasons for the entry of the temporary suspension order.
1263.18 	(c) Service of a temporary suspension order is effective when the order is served on the 
1263.19 	individual personally or by certified mail, which is complete upon receipt, refusal, or return 
1263.20 	for nondelivery to the most recent address provided to the board director for the individual.
1263.21 	(d) At the time the board director issues a temporary suspension order, the board director
1263.22 	shall schedule a hearing, to be held before a group of its members designated by the board,
1263.23 	that shall begin within 60 days after issuance of the temporary suspension order or within 
1263.24 	15 working days of the date of the board's director's receipt of a request for a hearing from 
1263.25 	the individual, whichever is sooner. The hearing shall be on the sole issue of whether there 
1263.26 	is a reasonable basis to continue, modify, or lift the temporary suspension. A hearing under 
1263.27 	this paragraph is not subject to chapter 14.
1263.28 	(e) Evidence presented by the board director or the individual may be in the form of an 
1263.29 	affidavit. The individual or individual's designee may appear for oral argument.
1263.30 	(f) Within five working days of the hearing, the board director shall issue its order and, 
1263.31 	if the suspension is continued, notify the individual of the right to a contested case hearing 
1263.32 	under chapter 14.
1264.1 	(g) If an individual requests a contested case hearing within 30 days of receiving notice 
1264.2 	under paragraph (f), the board director shall initiate a contested case hearing according to 
1264.3 	chapter 14. The administrative law judge shall issue a report and recommendation within 
1264.4 	30 days after the closing of the contested case hearing record. The board director shall issue 
1264.5 	a final order within 30 days after receipt of the administrative law judge's report.

1264.6 	EFFECTIVE DATE. This section is effective January 1, 2025.

1264.7 	Sec. 15. Minnesota Statutes 2022, section 144E.285, subdivision 6, is amended to read:
1264.8 		Subd. 6.Temporary suspension. (a) In addition to any other remedy provided by law, 
1264.9 	the board director may temporarily suspend approval of the education program after 
1264.10 	conducting a preliminary inquiry to determine whether the board director believes that the 
1264.11 	education program has violated a statute or rule that the board director is empowered to 
1264.12 	enforce and determining that the continued provision of service by the education program 
1264.13 	would create an imminent risk to public health or harm to others.
1264.14 	(b) A temporary suspension order prohibiting the education program from providing 
1264.15 	emergency medical care training shall give notice of the right to a preliminary hearing 
1264.16 	according to paragraph (d) and shall state the reasons for the entry of the temporary 
1264.17 	suspension order.
1264.18 	(c) Service of a temporary suspension order is effective when the order is served on the 
1264.19 	education program personally or by certified mail, which is complete upon receipt, refusal, 
1264.20 	or return for nondelivery to the most recent address provided to the board director for the 
1264.21 	education program.
1264.22 	(d) At the time the board director issues a temporary suspension order, the board director
1264.23 	shall schedule a hearing, to be held before a group of its members designated by the board,
1264.24 	that shall begin within 60 days after issuance of the temporary suspension order or within 
1264.25 	15 working days of the date of the board's director's receipt of a request for a hearing from 
1264.26 	the education program, whichever is sooner. The hearing shall be on the sole issue of whether 
1264.27 	there is a reasonable basis to continue, modify, or lift the temporary suspension. A hearing 
1264.28 	under this paragraph is not subject to chapter 14.
1264.29 	(e) Evidence presented by the board director or the individual may be in the form of an 
1264.30 	affidavit. The education program or counsel of record may appear for oral argument.
1264.31 	(f) Within five working days of the hearing, the board director shall issue its order and, 
1264.32 	if the suspension is continued, notify the education program of the right to a contested case 
1264.33 	hearing under chapter 14.
1265.1 	(g) If an education program requests a contested case hearing within 30 days of receiving 
1265.2 	notice under paragraph (f), the board director shall initiate a contested case hearing according 
1265.3 	to chapter 14. The administrative law judge shall issue a report and recommendation within 
1265.4 	30 days after the closing of the contested case hearing record. The board director shall issue 
1265.5 	a final order within 30 days after receipt of the administrative law judge's report.

1265.6 	EFFECTIVE DATE. This section is effective January 1, 2025.

1265.7 	Sec. 16. Minnesota Statutes 2022, section 144E.287, is amended to read:
1265.8 	144E.287 DIVERSION PROGRAM.
1265.9 	The board director shall either conduct a health professionals service services program 
1265.10 	under sections 214.31 to 214.37 or contract for a diversion program under section 214.28
1265.11 	for professionals regulated by the board under this chapter who are unable to perform their 
1265.12 	duties with reasonable skill and safety by reason of illness, use of alcohol, drugs, chemicals, 
1265.13 	or any other materials, or as a result of any mental, physical, or psychological condition.

1265.14 	EFFECTIVE DATE. This section is effective January 1, 2025.

1265.15 	Sec. 17. Minnesota Statutes 2022, section 144E.305, subdivision 3, is amended to read:
1265.16 		Subd. 3.Immunity. (a) An individual, licensee, health care facility, business, or 
1265.17 	organization is immune from civil liability or criminal prosecution for submitting in good 
1265.18 	faith a report to the boarddirector under subdivision 1 or 2 or for otherwise reporting in 
1265.19 	good faith to the boarddirector violations or alleged violations of sections 144E.001 to 
1265.20 	144E.33. Reports are classified as confidential data on individuals or protected nonpublic 
1265.21 	data under section 13.02 while an investigation is active. Except for the board'sdirector's 
1265.22 	final determination, all communications or information received by or disclosed to the board
1265.23 	director relating to disciplinary matters of any person or entity subject to the board'sdirector's 
1265.24 	regulatory jurisdiction are confidential and privileged and any disciplinary hearing shall be 
1265.25 	closed to the public.
1265.26 	(b) Members of the board The director, persons employed by the board director, persons 
1265.27 	engaged in the investigation of violations and in the preparation and management of charges 
1265.28 	of violations of sections 144E.001 to 144E.33 on behalf of the board director, and persons 
1265.29 	participating in the investigation regarding charges of violations are immune from civil 
1265.30 	liability and criminal prosecution for any actions, transactions, or publications, made in 
1265.31 	good faith, in the execution of, or relating to, their duties under sections 144E.001 to 144E.33.
1266.1 	(c) For purposes of this section, a member of the board is considered a state employee 
1266.2 	under section 3.736, subdivision 9.

1266.3 	EFFECTIVE DATE. This section is effective January 1, 2025.

1266.4 	Sec. 18. INITIAL MEMBERS AND FIRST MEETING; EMERGENCY MEDICAL 
1266.5 	SERVICES ADVISORY COUNCIL.
 1266.6 	(a) Initial appointments of members to the Emergency Medical Services Advisory 
1266.7 	Council must be made by January 1, 2025. The terms of initial appointees shall be determined 
1266.8 	by lot by the secretary of state and shall be as follows:
1266.9 	(1) eight members shall serve two-year terms; and
1266.10 	(2) eight members shall serve three-year terms.
1266.11 	(b) The medical director appointee must convene the first meeting of the Emergency 
1266.12 	Medical Services Advisory Council by February 1, 2025.

1266.13 	Sec. 19. INITIAL MEMBERS AND FIRST MEETING; EMERGENCY MEDICAL 
1266.14 	SERVICES PHYSICIAN ADVISORY COUNCIL.
 1266.15 	(a) Initial appointments of members to the Emergency Medical Services Physician 
1266.16 	Advisory Council must be made by January 1, 2025. The terms of initial appointees shall 
1266.17 	be determined by lot by the secretary of state and shall be as follows:
1266.18 	(1) five members shall serve two-year terms;
1266.19 	(2) five members shall serve three-year terms; and
1266.20 	(3) the term for the medical director appointee to the Emergency Medical Services 
1266.21 	Physician Advisory Council shall coincide with that member's term on the Emergency 
1266.22 	Medical Services Advisory Council.
1266.23 	(b) The medical director appointee must convene the first meeting of the Emergency 
1266.24 	Medical Services Physician Advisory Council by February 1, 2025.

1266.25 	Sec. 20. INITIAL MEMBERS AND FIRST MEETING; LABOR AND EMERGENCY 
1266.26 	MEDICAL SERVICE PROVIDERS ADVISORY COUNCIL.
 1266.27 	(a) Initial appointments of members to the Labor and Emergency Medical Service 
1266.28 	Providers Advisory Council must be made by January 1, 2025. The terms of initial appointees 
1266.29 	shall be determined by lot by the secretary of state and shall be as follows:
1266.30 	(1) six members shall serve two-year terms; and
1267.1 	(2) seven members shall serve three-year terms.
1267.2 	(b) The emergency medical technician instructor appointee must convene the first meeting 
1267.3 	of the Labor and Emergency Medical Service Providers Advisory Council by February 1, 
1267.4 	2025.

1267.5 	Sec. 21. TRANSITION.
 1267.6 		Subdivision 1.Appointment of director; operation of office. No later than October 
1267.7 	1, 2024, the governor shall appoint a director-designee of the Office of Emergency Medical 
1267.8 	Services. The individual appointed as the director-designee of the Office of Emergency 
1267.9 	Medical Services shall become the governor's appointee as director of the Office of 
1267.10 	Emergency Medical Services on January 1, 2025. Effective January 1, 2025, the 
1267.11 	responsibilities to regulate emergency medical services in the state under Minnesota Statutes, 
1267.12 	chapter 144E, and Minnesota Rules, chapter 4690, are transferred from the Emergency 
1267.13 	Medical Services Regulatory Board to the Office of Emergency Medical Services and the 
1267.14 	director of the Office of Emergency Medical Services.
1267.15 		Subd. 2.Transfer of responsibilities. Minnesota Statutes, section 15.039, applies to 
1267.16 	the transfer of responsibilities from the Emergency Medical Services Regulatory Board to 
1267.17 	the Office of Emergency Medical Services required by this act. The commissioner of 
1267.18 	administration, with the approval of the governor, may issue reorganization orders under 
1267.19 	Minnesota Statutes, section 16B.37, as necessary to carry out the transfer of responsibilities 
1267.20 	required by this act. The provision of Minnesota Statutes, section 16B.37, subdivision 1, 
1267.21 	which states that transfers under that section may be made only to an agency that has been 
1267.22 	in existence for at least one year, does not apply to transfers in this act to the Office of 
1267.23 	Emergency Medical Services.

1267.24 	Sec. 22. REVISOR INSTRUCTION.
 1267.25 	(a) In Minnesota Statutes, chapter 144E, the revisor of statutes shall replace "board" 
1267.26 	with "director"; "board's" with "director's"; "Emergency Medical Services Regulatory Board" 
1267.27 	or "Minnesota Emergency Medical Services Regulatory Board" with "director"; and 
1267.28 	"board-approved" with "director-approved," except that:
1267.29 	(1) in Minnesota Statutes, section 144E.11, the revisor of statutes shall not modify the 
1267.30 	term "county board," "community health board," or "community health boards";
1268.1 	(2) in Minnesota Statutes, sections 144E.40, subdivision 2; 144E.42, subdivision 2; 
1268.2 	144E.44; and 144E.45, subdivision 2, the revisor of statutes shall not modify the term "State 
1268.3 	Board of Investment"; and
1268.4 	(3) in Minnesota Statutes, sections 144E.50 and 144E.52, the revisor of statutes shall 
1268.5 	not modify the term "regional emergency medical services board," "regional board," "regional 
1268.6 	emergency medical services board's," or "regional boards."
1268.7 	(b) In the following sections of Minnesota Statutes, the revisor of statutes shall replace 
1268.8 	"Emergency Medical Services Regulatory Board" with "director of the Office of Emergency 
1268.9 	Medical Services": sections 13.717, subdivision 10; 62J.49, subdivision 2; 144.604; 144.608; 
1268.10 	147.09; 156.12, subdivision 2; 169.686, subdivision 3; and 299A.41, subdivision 4.
1268.11 	(c) In the following sections of Minnesota Statutes, the revisor of statutes shall replace 
1268.12 	"Emergency Medical Services Regulatory Board" with "Office of Emergency Medical 
1268.13 	Services": sections 144.603 and 161.045, subdivision 3.
1268.14 	(d) In making the changes specified in this section, the revisor of statutes may make 
1268.15 	technical and other necessary changes to sentence structure to preserve the meaning of the 
1268.16 	text.

1268.17 	Sec. 23. REPEALER.
 1268.18 	Minnesota Statutes 2022, sections 144E.001, subdivision 5; 144E.01; 144E.123, 
1268.19 	subdivision 5; and 144E.50, subdivision 3, are repealed.

1268.20 	EFFECTIVE DATE. This section is effective January 1, 2025.

1268.21 	ARTICLE 64
1268.22 	EMERGENCY MEDICAL SERVICES CONFORMING CHANGES

1268.23 	Section 1. Minnesota Statutes 2023 Supplement, section 15A.0815, subdivision 2, is 
1268.24 	amended to read:
1268.25 		Subd. 2.Agency head salaries. The salary for a position listed in this subdivision shall 
1268.26 	be determined by the Compensation Council under section 15A.082. The commissioner of 
1268.27 	management and budget must publish the salaries on the department's website. This 
1268.28 	subdivision applies to the following positions:
1268.29 	Commissioner of administration;
1268.30 	Commissioner of agriculture;
1268.31 	Commissioner of education;
1269.1 	Commissioner of children, youth, and families;
1269.2 	Commissioner of commerce;
1269.3 	Commissioner of corrections;
1269.4 	Commissioner of health;
1269.5 	Commissioner, Minnesota Office of Higher Education;
1269.6 	Commissioner, Minnesota IT Services;
1269.7 	Commissioner, Housing Finance Agency;
1269.8 	Commissioner of human rights;
1269.9 	Commissioner of human services;
1269.10 	Commissioner of labor and industry;
1269.11 	Commissioner of management and budget;
1269.12 	Commissioner of natural resources;
1269.13 	Commissioner, Pollution Control Agency;
1269.14 	Commissioner of public safety;
1269.15 	Commissioner of revenue;
1269.16 	Commissioner of employment and economic development;
1269.17 	Commissioner of transportation;
1269.18 	Commissioner of veterans affairs;
1269.19 	Executive director of the Gambling Control Board;
1269.20 	Executive director of the Minnesota State Lottery;
1269.21 	Commissioner of Iron Range resources and rehabilitation;
1269.22 	Commissioner, Bureau of Mediation Services;
1269.23 	Ombudsman for mental health and developmental disabilities;
1269.24 	Ombudsperson for corrections;
1269.25 	Chair, Metropolitan Council;
1269.26 	Chair, Metropolitan Airports Commission;
1269.27 	School trust lands director;
1270.1 	Executive director of pari-mutuel racing; and
1270.2 	Commissioner, Public Utilities Commission.; and
1270.3 	Director of the Office of Emergency Medical Services.

1270.4 	EFFECTIVE DATE. This section is effective January 1, 2025.

1270.5 	Sec. 2. Minnesota Statutes 2023 Supplement, section 43A.08, subdivision 1a, is amended 
1270.6 	to read:
1270.7 		Subd. 1a.Additional unclassified positions. Appointing authorities for the following 
1270.8 	agencies may designate additional unclassified positions according to this subdivision: the 
1270.9 	Departments of Administration; Agriculture; Children, Youth, and Families; Commerce; 
1270.10 	Corrections; Direct Care and Treatment; Education; Employment and Economic 
1270.11 	Development; Explore Minnesota Tourism; Management and Budget; Health; Human 
1270.12 	Rights; Human Services; Labor and Industry; Natural Resources; Public Safety; Revenue; 
1270.13 	Transportation; and Veterans Affairs; the Housing Finance and Pollution Control Agencies; 
1270.14 	the State Lottery; the State Board of Investment; the Office of Administrative Hearings; the 
1270.15 	Department of Information Technology Services; the Offices of the Attorney General, 
1270.16 	Secretary of State, and State Auditor; the Minnesota State Colleges and Universities; the 
1270.17 	Minnesota Office of Higher Education; the Perpich Center for Arts Education; and the 
1270.18 	Minnesota Zoological Board; and the Office of Emergency Medical Services.
1270.19 	A position designated by an appointing authority according to this subdivision must 
1270.20 	meet the following standards and criteria:
1270.21 	(1) the designation of the position would not be contrary to other law relating specifically 
1270.22 	to that agency;
1270.23 	(2) the person occupying the position would report directly to the agency head or deputy 
1270.24 	agency head and would be designated as part of the agency head's management team;
1270.25 	(3) the duties of the position would involve significant discretion and substantial 
1270.26 	involvement in the development, interpretation, and implementation of agency policy;
1270.27 	(4) the duties of the position would not require primarily personnel, accounting, or other 
1270.28 	technical expertise where continuity in the position would be important;
1270.29 	(5) there would be a need for the person occupying the position to be accountable to, 
1270.30 	loyal to, and compatible with, the governor and the agency head, the employing statutory 
1270.31 	board or commission, or the employing constitutional officer;
1271.1 	(6) the position would be at the level of division or bureau director or assistant to the 
1271.2 	agency head; and
1271.3 	(7) the commissioner has approved the designation as being consistent with the standards 
1271.4 	and criteria in this subdivision.

1271.5 	EFFECTIVE DATE. This section is effective January 1, 2025.

1271.6 	Sec. 3. Minnesota Statutes 2022, section 62J.49, subdivision 1, is amended to read:
1271.7 		Subdivision 1.Establishment. The director of the Office of Emergency Medical Services 
1271.8 	Regulatory Board established under chapter 144 144E shall establish a financial data 
1271.9 	collection system for all ambulance services licensed in this state. To establish the financial 
1271.10 	database, the Emergency Medical Services Regulatory Board director may contract with 
1271.11 	an entity that has experience in ambulance service financial data collection.

1271.12 	EFFECTIVE DATE. This section is effective January 1, 2025.

1271.13 	Sec. 4. Minnesota Statutes 2023 Supplement, section 152.126, subdivision 6, is amended 
1271.14 	to read:
1271.15 		Subd. 6.Access to reporting system data. (a) Except as indicated in this subdivision, 
1271.16 	the data submitted to the board under subdivision 4 is private data on individuals as defined 
1271.17 	in section 13.02, subdivision 12, and not subject to public disclosure.
1271.18 	(b) Except as specified in subdivision 5, the following persons shall be considered 
1271.19 	permissible users and may access the data submitted under subdivision 4 in the same or 
1271.20 	similar manner, and for the same or similar purposes, as those persons who are authorized 
1271.21 	to access similar private data on individuals under federal and state law:
1271.22 	(1) a prescriber or an agent or employee of the prescriber to whom the prescriber has 
1271.23 	delegated the task of accessing the data, to the extent the information relates specifically to 
1271.24 	a current patient, to whom the prescriber is:
1271.25 	(i) prescribing or considering prescribing any controlled substance;
1271.26 	(ii) providing emergency medical treatment for which access to the data may be necessary;
1271.27 	(iii) providing care, and the prescriber has reason to believe, based on clinically valid 
1271.28 	indications, that the patient is potentially abusing a controlled substance; or
1271.29 	(iv) providing other medical treatment for which access to the data may be necessary 
1271.30 	for a clinically valid purpose and the patient has consented to access to the submitted data, 
1272.1 	and with the provision that the prescriber remains responsible for the use or misuse of data 
1272.2 	accessed by a delegated agent or employee;
1272.3 	(2) a dispenser or an agent or employee of the dispenser to whom the dispenser has 
1272.4 	delegated the task of accessing the data, to the extent the information relates specifically to 
1272.5 	a current patient to whom that dispenser is dispensing or considering dispensing any 
1272.6 	controlled substance and with the provision that the dispenser remains responsible for the 
1272.7 	use or misuse of data accessed by a delegated agent or employee;
1272.8 	(3) a licensed dispensing practitioner or licensed pharmacist to the extent necessary to 
1272.9 	determine whether corrections made to the data reported under subdivision 4 are accurate;
1272.10 	(4) a licensed pharmacist who is providing pharmaceutical care for which access to the 
1272.11 	data may be necessary to the extent that the information relates specifically to a current 
1272.12 	patient for whom the pharmacist is providing pharmaceutical care: (i) if the patient has 
1272.13 	consented to access to the submitted data; or (ii) if the pharmacist is consulted by a prescriber 
1272.14 	who is requesting data in accordance with clause (1);
1272.15 	(5) an individual who is the recipient of a controlled substance prescription for which 
1272.16 	data was submitted under subdivision 4, or a guardian of the individual, parent or guardian 
1272.17 	of a minor, or health care agent of the individual acting under a health care directive under 
1272.18 	chapter 145C. For purposes of this clause, access by individuals includes persons in the 
1272.19 	definition of an individual under section 13.02;
1272.20 	(6) personnel or designees of a health-related licensing board listed in section 214.01, 
1272.21 	subdivision 2, or of the Office of Emergency Medical Services Regulatory Board, assigned 
1272.22 	to conduct a bona fide investigation of a complaint received by that board or office that 
1272.23 	alleges that a specific licensee is impaired by use of a drug for which data is collected under 
1272.24 	subdivision 4, has engaged in activity that would constitute a crime as defined in section 
1272.25 	152.025, or has engaged in the behavior specified in subdivision 5, paragraph (a);
1272.26 	(7) personnel of the board engaged in the collection, review, and analysis of controlled 
1272.27 	substance prescription information as part of the assigned duties and responsibilities under 
1272.28 	this section;
1272.29 	(8) authorized personnel under contract with the board, or under contract with the state 
1272.30 	of Minnesota and approved by the board, who are engaged in the design, evaluation, 
1272.31 	implementation, operation, or maintenance of the prescription monitoring program as part 
1272.32 	of the assigned duties and responsibilities of their employment, provided that access to data 
1272.33 	is limited to the minimum amount necessary to carry out such duties and responsibilities, 
1273.1 	and subject to the requirement of de-identification and time limit on retention of data specified 
1273.2 	in subdivision 5, paragraphs (d) and (e);
1273.3 	(9) federal, state, and local law enforcement authorities acting pursuant to a valid search 
1273.4 	warrant;
1273.5 	(10) personnel of the Minnesota health care programs assigned to use the data collected 
1273.6 	under this section to identify and manage recipients whose usage of controlled substances 
1273.7 	may warrant restriction to a single primary care provider, a single outpatient pharmacy, and 
1273.8 	a single hospital;
1273.9 	(11) personnel of the Department of Human Services assigned to access the data pursuant 
1273.10 	to paragraph (k);
1273.11 	(12) personnel of the health professionals services program established under section 
1273.12 	214.31, to the extent that the information relates specifically to an individual who is currently 
1273.13 	enrolled in and being monitored by the program, and the individual consents to access to 
1273.14 	that information. The health professionals services program personnel shall not provide this 
1273.15 	data to a health-related licensing board or the Emergency Medical Services Regulatory 
1273.16 	Board, except as permitted under section 214.33, subdivision 3;
1273.17 	(13) personnel or designees of a health-related licensing board other than the Board of 
1273.18 	Pharmacy listed in section 214.01, subdivision 2, assigned to conduct a bona fide 
1273.19 	investigation of a complaint received by that board that alleges that a specific licensee is 
1273.20 	inappropriately prescribing controlled substances as defined in this section. For the purposes 
1273.21 	of this clause, the health-related licensing board may also obtain utilization data; and
1273.22 	(14) personnel of the board specifically assigned to conduct a bona fide investigation 
1273.23 	of a specific licensee or registrant. For the purposes of this clause, the board may also obtain 
1273.24 	utilization data.
1273.25 	(c) By July 1, 2017, every prescriber licensed by a health-related licensing board listed 
1273.26 	in section 214.01, subdivision 2, practicing within this state who is authorized to prescribe 
1273.27 	controlled substances for humans and who holds a current registration issued by the federal 
1273.28 	Drug Enforcement Administration, and every pharmacist licensed by the board and practicing 
1273.29 	within the state, shall register and maintain a user account with the prescription monitoring 
1273.30 	program. Data submitted by a prescriber, pharmacist, or their delegate during the registration 
1273.31 	application process, other than their name, license number, and license type, is classified 
1273.32 	as private pursuant to section 13.02, subdivision 12.
1274.1 	(d) Notwithstanding paragraph (b), beginning January 1, 2021, a prescriber or an agent 
1274.2 	or employee of the prescriber to whom the prescriber has delegated the task of accessing 
1274.3 	the data, must access the data submitted under subdivision 4 to the extent the information 
1274.4 	relates specifically to the patient:
1274.5 	(1) before the prescriber issues an initial prescription order for a Schedules II through 
1274.6 	IV opiate controlled substance to the patient; and
1274.7 	(2) at least once every three months for patients receiving an opiate for treatment of 
1274.8 	chronic pain or participating in medically assisted treatment for an opioid addiction.
1274.9 	(e) Paragraph (d) does not apply if:
1274.10 	(1) the patient is receiving palliative care, or hospice or other end-of-life care;
1274.11 	(2) the patient is being treated for pain due to cancer or the treatment of cancer;
1274.12 	(3) the prescription order is for a number of doses that is intended to last the patient five 
1274.13 	days or less and is not subject to a refill;
1274.14 	(4) the prescriber and patient have a current or ongoing provider/patient relationship of 
1274.15 	a duration longer than one year;
1274.16 	(5) the prescription order is issued within 14 days following surgery or three days 
1274.17 	following oral surgery or follows the prescribing protocols established under the opioid 
1274.18 	prescribing improvement program under section 256B.0638;
1274.19 	(6) the controlled substance is prescribed or administered to a patient who is admitted 
1274.20 	to an inpatient hospital;
1274.21 	(7) the controlled substance is lawfully administered by injection, ingestion, or any other 
1274.22 	means to the patient by the prescriber, a pharmacist, or by the patient at the direction of a 
1274.23 	prescriber and in the presence of the prescriber or pharmacist;
1274.24 	(8) due to a medical emergency, it is not possible for the prescriber to review the data 
1274.25 	before the prescriber issues the prescription order for the patient; or
1274.26 	(9) the prescriber is unable to access the data due to operational or other technological 
1274.27 	failure of the program so long as the prescriber reports the failure to the board.
1274.28 	(f) Only permissible users identified in paragraph (b), clauses (1), (2), (3), (4), (7), (8), 
1274.29 	(10), and (11), may directly access the data electronically. No other permissible users may 
1274.30 	directly access the data electronically. If the data is directly accessed electronically, the 
1274.31 	permissible user shall implement and maintain a comprehensive information security program 
1274.32 	that contains administrative, technical, and physical safeguards that are appropriate to the 
1275.1 	user's size and complexity, and the sensitivity of the personal information obtained. The 
1275.2 	permissible user shall identify reasonably foreseeable internal and external risks to the 
1275.3 	security, confidentiality, and integrity of personal information that could result in the 
1275.4 	unauthorized disclosure, misuse, or other compromise of the information and assess the 
1275.5 	sufficiency of any safeguards in place to control the risks.
1275.6 	(g) The board shall not release data submitted under subdivision 4 unless it is provided 
1275.7 	with evidence, satisfactory to the board, that the person requesting the information is entitled 
1275.8 	to receive the data.
1275.9 	(h) The board shall maintain a log of all persons who access the data for a period of at 
1275.10 	least three years and shall ensure that any permissible user complies with paragraph (c) 
1275.11 	prior to attaining direct access to the data.
1275.12 	(i) Section 13.05, subdivision 6, shall apply to any contract the board enters into pursuant 
1275.13 	to subdivision 2. A vendor shall not use data collected under this section for any purpose 
1275.14 	not specified in this section.
1275.15 	(j) The board may participate in an interstate prescription monitoring program data 
1275.16 	exchange system provided that permissible users in other states have access to the data only 
1275.17 	as allowed under this section, and that section 13.05, subdivision 6, applies to any contract 
1275.18 	or memorandum of understanding that the board enters into under this paragraph.
1275.19 	(k) With available appropriations, the commissioner of human services shall establish 
1275.20 	and implement a system through which the Department of Human Services shall routinely 
1275.21 	access the data for the purpose of determining whether any client enrolled in an opioid 
1275.22 	treatment program licensed according to chapter 245A has been prescribed or dispensed a 
1275.23 	controlled substance in addition to that administered or dispensed by the opioid treatment 
1275.24 	program. When the commissioner determines there have been multiple prescribers or multiple 
1275.25 	prescriptions of controlled substances, the commissioner shall:
1275.26 	(1) inform the medical director of the opioid treatment program only that the 
1275.27 	commissioner determined the existence of multiple prescribers or multiple prescriptions of 
1275.28 	controlled substances; and
1275.29 	(2) direct the medical director of the opioid treatment program to access the data directly, 
1275.30 	review the effect of the multiple prescribers or multiple prescriptions, and document the 
1275.31 	review.
1276.1 	If determined necessary, the commissioner of human services shall seek a federal waiver 
1276.2 	of, or exception to, any applicable provision of Code of Federal Regulations, title 42, section 
1276.3 	2.34, paragraph (c), prior to implementing this paragraph.
1276.4 	(l) The board shall review the data submitted under subdivision 4 on at least a quarterly 
1276.5 	basis and shall establish criteria, in consultation with the advisory task force, for referring 
1276.6 	information about a patient to prescribers and dispensers who prescribed or dispensed the 
1276.7 	prescriptions in question if the criteria are met.
1276.8 	(m) The board shall conduct random audits, on at least a quarterly basis, of electronic 
1276.9 	access by permissible users, as identified in paragraph (b), clauses (1), (2), (3), (4), (7), (8), 
1276.10 	(10), and (11), to the data in subdivision 4, to ensure compliance with permissible use as 
1276.11 	defined in this section. A permissible user whose account has been selected for a random 
1276.12 	audit shall respond to an inquiry by the board, no later than 30 days after receipt of notice 
1276.13 	that an audit is being conducted. Failure to respond may result in deactivation of access to 
1276.14 	the electronic system and referral to the appropriate health licensing board, or the 
1276.15 	commissioner of human services, for further action. The board shall report the results of 
1276.16 	random audits to the chairs and ranking minority members of the legislative committees 
1276.17 	with jurisdiction over health and human services policy and finance and government data 
1276.18 	practices.
1276.19 	(n) A permissible user who has delegated the task of accessing the data in subdivision 
1276.20 	4 to an agent or employee shall audit the use of the electronic system by delegated agents 
1276.21 	or employees on at least a quarterly basis to ensure compliance with permissible use as 
1276.22 	defined in this section. When a delegated agent or employee has been identified as 
1276.23 	inappropriately accessing data, the permissible user must immediately remove access for 
1276.24 	that individual and notify the board within seven days. The board shall notify all permissible 
1276.25 	users associated with the delegated agent or employee of the alleged violation.
1276.26 	(o) A permissible user who delegates access to the data submitted under subdivision 4 
1276.27 	to an agent or employee shall terminate that individual's access to the data within three 
1276.28 	business days of the agent or employee leaving employment with the permissible user. The 
1276.29 	board may conduct random audits to determine compliance with this requirement.

1276.30 	EFFECTIVE DATE. This section is effective January 1, 2025.

1277.1 	Sec. 5. Minnesota Statutes 2022, section 214.025, is amended to read:
1277.2 	214.025 COUNCIL OF HEALTH BOARDS.
1277.3 	The health-related licensing boards may establish a Council of Health Boards consisting 
1277.4 	of representatives of the health-related licensing boards and the Emergency Medical Services 
1277.5 	Regulatory Board. When reviewing legislation or legislative proposals relating to the 
1277.6 	regulation of health occupations, the council shall include the commissioner of health or a 
1277.7 	designee and the director of the Office of Emergency Medical Services or a designee.

1277.8 	EFFECTIVE DATE. This section is effective January 1, 2025.

1277.9 	Sec. 6. Minnesota Statutes 2022, section 214.04, subdivision 2a, is amended to read:
1277.10 		Subd. 2a.Performance of executive directors. The governor may request that a 
1277.11 	health-related licensing board or the Emergency Medical Services Regulatory Board review 
1277.12 	the performance of the board's executive director. Upon receipt of the request, the board 
1277.13 	must respond by establishing a performance improvement plan or taking disciplinary or 
1277.14 	other corrective action, including dismissal. The board shall include the governor's 
1277.15 	representative as a voting member of the board in the board's discussions and decisions 
1277.16 	regarding the governor's request. The board shall report to the governor on action taken by 
1277.17 	the board, including an explanation if no action is deemed necessary.

1277.18 	EFFECTIVE DATE. This section is effective January 1, 2025.

1277.19 	Sec. 7. Minnesota Statutes 2022, section 214.29, is amended to read:
1277.20 	214.29 PROGRAM REQUIRED.
1277.21 	Each health-related licensing board, including the Emergency Medical Services 
1277.22 	Regulatory Board under chapter 144E, shall either conduct a health professionals service 
1277.23 	program under sections 214.31 to 214.37 or contract for a diversion program under section 
1277.24 	214.28.

1277.25 	EFFECTIVE DATE. This section is effective January 1, 2025.

1277.26 	Sec. 8. Minnesota Statutes 2022, section 214.31, is amended to read:
1277.27 	214.31 AUTHORITY.
1277.28 	Two or more of the health-related licensing boards listed in section 214.01, subdivision 
1277.29 	2, may jointly conduct a health professionals services program to protect the public from 
1277.30 	persons regulated by the boards who are unable to practice with reasonable skill and safety 
1278.1 	by reason of illness, use of alcohol, drugs, chemicals, or any other materials, or as a result 
1278.2 	of any mental, physical, or psychological condition. The program does not affect a board's 
1278.3 	authority to discipline violations of a board's practice act. For purposes of sections 214.31
1278.4 	to 214.37, the emergency medical services regulatory board shall be included in the definition 
1278.5 	of a health-related licensing board under chapter 144E.

1278.6 	EFFECTIVE DATE. This section is effective January 1, 2025.

1278.7 	Sec. 9. Minnesota Statutes 2022, section 214.355, is amended to read:
1278.8 	214.355 GROUNDS FOR DISCIPLINARY ACTION.
1278.9 	Each health-related licensing board, including the Emergency Medical Services 
1278.10 	Regulatory Board under chapter 144E, shall consider it grounds for disciplinary action if a 
1278.11 	regulated person violates the terms of the health professionals services program participation 
1278.12 	agreement or leaves the program except upon fulfilling the terms for successful completion 
1278.13 	of the program as set forth in the participation agreement.

1278.14 	EFFECTIVE DATE. This section is effective January 1, 2025.

1278.15 	ARTICLE 65
1278.16 	AMBULANCE SERVICE PERSONNEL AND EMERGENCY MEDICAL 
1278.17 	RESPONDERS

1278.18 	Section 1. Minnesota Statutes 2022, section 144E.001, subdivision 3a, is amended to read:
1278.19 		Subd. 3a.Ambulance service personnel. "Ambulance service personnel" means 
1278.20 	individuals who are authorized by a licensed ambulance service to provide emergency care 
1278.21 	for the ambulance service and are:
1278.22 	(1) EMTs, AEMTs, or paramedics;
1278.23 	(2) Minnesota registered nurses who are: (i) EMTs, are currently practicing nursing, and 
1278.24 	have passed a paramedic practical skills test, as approved by the board and administered by 
1278.25 	an educational program approved by the board been approved by the ambulance service 
1278.26 	medical director; (ii) on the roster of an ambulance service on or before January 1, 2000; 
1278.27 	or (iii) after petitioning the board, deemed by the board to have training and skills equivalent 
1278.28 	to an EMT, as determined on a case-by-case basis; or (iv) certified as a certified flight 
1278.29 	registered nurse or certified emergency nurse; or
1278.30 	(3) Minnesota licensed physician assistants who are: (i) EMTs, are currently practicing 
1278.31 	as physician assistants, and have passed a paramedic practical skills test, as approved by 
1278.32 	the board and administered by an educational program approved by the board been approved 
1279.1 	by the ambulance service medical director; (ii) on the roster of an ambulance service on or 
1279.2 	before January 1, 2000; or (iii) after petitioning the board, deemed by the board to have 
1279.3 	training and skills equivalent to an EMT, as determined on a case-by-case basis.

1279.4 	Sec. 2. Minnesota Statutes 2023 Supplement, section 144E.101, subdivision 6, is amended 
1279.5 	to read:
1279.6 		Subd. 6.Basic life support. (a) Except as provided in paragraph (f) subdivision 6a, a 
1279.7 	basic life-support ambulance shall be staffed by at least two EMTs, one of whom must 
1279.8 	accompany the patient and provide a level of care so as to ensure that:
1279.9 	(1) one individual who is:
1279.10 	(i) certified as an EMT;
1279.11 	(ii) a Minnesota registered nurse who meets the qualification requirements in section 
1279.12 	144E.001, subdivision 3a, clause (2); or
1279.13 	(iii) a Minnesota licensed physician assistant who meets the qualification requirements 
1279.14 	in section 144E.001, subdivision 3a, clause (3); and
1279.15 	(2) one individual to drive the ambulance who:
1279.16 	(i) either meets one of the qualification requirements in clause (1) or is a registered 
1279.17 	emergency medical responder driver; and
1279.18 	(ii) satisfies the requirements in subdivision 10.
1279.19 	(b) An individual who meets one of the qualification requirements in paragraph (a), 
1279.20 	clause (1), must accompany the patient and provide a level of care so as to ensure that:
1279.21 	(1) life-threatening situations and potentially serious injuries are recognized;
1279.22 	(2) patients are protected from additional hazards;
1279.23 	(3) basic treatment to reduce the seriousness of emergency situations is administered; 
1279.24 	and
1279.25 	(4) patients are transported to an appropriate medical facility for treatment.
1279.26 	(b) (c) A basic life-support service shall provide basic airway management.
1279.27 	(c) (d) A basic life-support service shall provide automatic defibrillation.
1279.28 	(d) (e) A basic life-support service shall administer opiate antagonists consistent with 
1279.29 	protocols established by the service's medical director.
1280.1 	(e) (f) A basic life-support service licensee's medical director may authorize ambulance 
1280.2 	service personnel to perform intravenous infusion and use equipment that is within the 
1280.3 	licensure level of the ambulance service. Ambulance service personnel must be properly 
1280.4 	trained. Documentation of authorization for use, guidelines for use, continuing education, 
1280.5 	and skill verification must be maintained in the licensee's files.
1280.6 	(f) For emergency ambulance calls and interfacility transfers, an ambulance service may 
1280.7 	staff its basic life-support ambulances with one EMT, who must accompany the patient, 
1280.8 	and one registered emergency medical responder driver. For purposes of this paragraph, 
1280.9 	"ambulance service" means either an ambulance service whose primary service area is 
1280.10 	mainly located outside the metropolitan counties listed in section 473.121, subdivision 4, 
1280.11 	and outside the cities of Duluth, Mankato, Moorhead, Rochester, and St. Cloud; or an 
1280.12 	ambulance service based in a community with a population of less than 2,500.

1280.13 	Sec. 3. Minnesota Statutes 2022, section 144E.101, is amended by adding a subdivision 
1280.14 	to read:
1280.15 		Subd. 6a.Variance; staffing of basic life-support ambulance. (a) Upon application 
1280.16 	from an ambulance service that includes evidence demonstrating hardship, the board may 
1280.17 	grant a variance from the staff requirements in subdivision 6, paragraph (a), and may 
1280.18 	authorize a basic life-support ambulance to be staffed, for all emergency calls and interfacility 
1280.19 	transfers, with one individual who meets the qualification requirements in paragraph (b) to 
1280.20 	drive the ambulance and one individual who meets one of the qualification requirements in 
1280.21 	subdivision 6, paragraph (a), clause (1), and who must accompany the patient. The variance 
1280.22 	applies to basic life-support ambulances until the ambulance service renews its license. 
1280.23 	When the variance expires, the ambulance service may apply for a new variance under this 
1280.24 	subdivision.
1280.25 	(b) In order to drive an ambulance under a variance granted under this subdivision, an 
1280.26 	individual must:
1280.27 	(1) hold a valid driver's license from any state;
1280.28 	(2) have attended an emergency vehicle driving course approved by the ambulance 
1280.29 	service;
1280.30 	(3) have completed a course on cardiopulmonary resuscitation approved by the ambulance 
1280.31 	service; and
1280.32 	(4) register with the board according to a process established by the board.
1281.1 	(c) If an individual serving as a driver under this subdivision commits or has a record 
1281.2 	of committing an act listed in section 144E.27, subdivision 5, paragraph (a), the board may 
1281.3 	temporarily suspend or prohibit the individual from driving an ambulance or place conditions 
1281.4 	on the individual's ability to drive an ambulance using the procedures and authority in 
1281.5 	section 144E.27, subdivisions 5 and 6.

1281.6 	Sec. 4. Minnesota Statutes 2023 Supplement, section 144E.101, subdivision 7, as amended 
1281.7 	by Laws 2024, chapter 85, section 32, is amended to read:
1281.8 		Subd. 7.Advanced life support. (a) Except as provided in paragraphs (f) and (g), an 
1281.9 	advanced life-support ambulance shall be staffed by at least:
1281.10 	(1) one EMT or one AEMT and one paramedic;
1281.11 	(2) one EMT or one AEMT and one registered nurse who: (i) is an EMT or an AEMT, 
1281.12 	is currently practicing nursing, and has passed a paramedic practical skills test approved by 
1281.13 	the board and administered by an education program has been approved by the ambulance 
1281.14 	service medical director; or (ii) is certified as a certified flight registered nurse or certified 
1281.15 	emergency nurse; or
1281.16 	(3) one EMT or one AEMT and one physician assistant who is an EMT or an AEMT, 
1281.17 	is currently practicing as a physician assistant, and has passed a paramedic practical skills 
1281.18 	test approved by the board and administered by an education program has been approved 
1281.19 	by the ambulance service medical director.
1281.20 	(b) An advanced life-support service shall provide basic life support, as specified under 
1281.21 	subdivision 6, paragraph (a) (b), advanced airway management, manual defibrillation, 
1281.22 	administration of intravenous fluids and pharmaceuticals, and administration of opiate 
1281.23 	antagonists.
1281.24 	(c) In addition to providing advanced life support, an advanced life-support service may 
1281.25 	staff additional ambulances to provide basic life support according to subdivision 6 and 
1281.26 	section 144E.103, subdivision 1.
1281.27 	(d) An ambulance service providing advanced life support shall have a written agreement 
1281.28 	with its medical director to ensure medical control for patient care 24 hours a day, seven 
1281.29 	days a week. The terms of the agreement shall include a written policy on the administration 
1281.30 	of medical control for the service. The policy shall address the following issues:
1281.31 	(1) two-way communication for physician direction of ambulance service personnel;
1281.32 	(2) patient triage, treatment, and transport;
1282.1 	(3) use of standing orders; and
1282.2 	(4) the means by which medical control will be provided 24 hours a day.
1282.3 	The agreement shall be signed by the licensee's medical director and the licensee or the 
1282.4 	licensee's designee and maintained in the files of the licensee.
1282.5 	(e) When an ambulance service provides advanced life support, the authority of a 
1282.6 	paramedic, Minnesota registered nurse-EMT, or Minnesota registered physician 
1282.7 	assistant-EMT to determine the delivery of patient care prevails over the authority of an 
1282.8 	EMT.
1282.9 	(f) Upon application from an ambulance service that includes evidence demonstrating 
1282.10 	hardship, the board may grant a variance from the staff requirements in paragraph (a), clause 
1282.11 	(1), and may authorize an advanced life-support ambulance to be staffed by a registered 
1282.12 	emergency medical responder driver with a paramedic for all emergency calls and interfacility 
1282.13 	transfers. The variance shall apply to advanced life-support ambulance services until the 
1282.14 	ambulance service renews its license. When the variance expires, an ambulance service 
1282.15 	may apply for a new variance under this paragraph. This paragraph applies only to an 
1282.16 	ambulance service whose primary service area is mainly located outside the metropolitan 
1282.17 	counties listed in section 473.121, subdivision 4, and outside the cities of Duluth, Mankato, 
1282.18 	Moorhead, Rochester, and St. Cloud, or an ambulance service based in a community with 
1282.19 	a population of less than 1,000 persons.
1282.20 	(g) After an initial emergency ambulance call, each subsequent emergency ambulance 
1282.21 	response, until the initial ambulance is again available, and interfacility transfers, may be 
1282.22 	staffed by one registered emergency medical responder driver and an EMT or paramedic. 
1282.23 	This paragraph applies only to an ambulance service whose primary service area is mainly 
1282.24 	located outside the metropolitan counties listed in section 473.121, subdivision 4, and outside 
1282.25 	the cities of Duluth, Mankato, Moorhead, Rochester, and St. Cloud, or an ambulance service 
1282.26 	based in a community with a population of less than 1,000 persons.
1282.27 	(h) An individual who staffs an advanced life-support ambulance as a driver must also 
1282.28 	meet the requirements in subdivision 10.

1282.29 	Sec. 5. Minnesota Statutes 2022, section 144E.27, subdivision 3, is amended to read:
1282.30 		Subd. 3.Renewal. (a) The board may renew the registration of an emergency medical 
1282.31 	responder who:
1282.32 	(1) successfully completes a board-approved refresher course; and
1283.1 	(2) successfully completes a course in cardiopulmonary resuscitation approved by the 
1283.2 	board or by the licensee's medical director. This course may be a component of a 
1283.3 	board-approved refresher course; and
1283.4 	(2) (3) submits a completed renewal application to the board before the registration 
1283.5 	expiration date.
1283.6 	(b) The board may renew the lapsed registration of an emergency medical responder 
1283.7 	who:
1283.8 	(1) successfully completes a board-approved refresher course; and
1283.9 	(2) successfully completes a course in cardiopulmonary resuscitation approved by the 
1283.10 	board or by the licensee's medical director. This course may be a component of a 
1283.11 	board-approved refresher course; and
1283.12 	(2) (3) submits a completed renewal application to the board within 12 48 months after 
1283.13 	the registration expiration date.

1283.14 	Sec. 6. Minnesota Statutes 2022, section 144E.27, subdivision 5, is amended to read:
1283.15 		Subd. 5.Denial, suspension, revocation; emergency medical responders and 
1283.16 	drivers. (a) This subdivision applies to individuals seeking registration or registered as an 
1283.17 	emergency medical responder and to individuals seeking registration or registered as a driver 
1283.18 	of a basic life-support ambulance under section 144E.101, subdivision 6a. The board may 
1283.19 	deny, suspend, revoke, place conditions on, or refuse to renew the registration of an individual 
1283.20 	who the board determines:
1283.21 	(1) violates sections 144E.001 to 144E.33 or the rules adopted under those sections, an 
1283.22 	agreement for corrective action, or an order that the board issued or is otherwise empowered 
1283.23 	to enforce;
1283.24 	(2) misrepresents or falsifies information on an application form for registration;
1283.25 	(3) is convicted or pleads guilty or nolo contendere to any felony; any gross misdemeanor 
1283.26 	relating to assault, sexual misconduct, theft, or the illegal use of drugs or alcohol; or any 
1283.27 	misdemeanor relating to assault, sexual misconduct, theft, or the illegal use of drugs or 
1283.28 	alcohol;
1283.29 	(4) is actually or potentially unable to provide emergency medical services or drive an 
1283.30 	ambulance with reasonable skill and safety to patients by reason of illness, use of alcohol, 
1283.31 	drugs, chemicals, or any other material, or as a result of any mental or physical condition;
1284.1 	(5) engages in unethical conduct, including, but not limited to, conduct likely to deceive, 
1284.2 	defraud, or harm the public, or demonstrating a willful or careless disregard for the health, 
1284.3 	welfare, or safety of the public;
1284.4 	(6) maltreats or abandons a patient;
1284.5 	(7) violates any state or federal controlled substance law;
1284.6 	(8) engages in unprofessional conduct or any other conduct which has the potential for 
1284.7 	causing harm to the public, including any departure from or failure to conform to the 
1284.8 	minimum standards of acceptable and prevailing practice without actual injury having to 
1284.9 	be established;
1284.10 	(9) for emergency medical responders, provides emergency medical services under 
1284.11 	lapsed or nonrenewed credentials;
1284.12 	(10) is subject to a denial, corrective, disciplinary, or other similar action in another 
1284.13 	jurisdiction or by another regulatory authority;
1284.14 	(11) engages in conduct with a patient that is sexual or may reasonably be interpreted 
1284.15 	by the patient as sexual, or in any verbal behavior that is seductive or sexually demeaning 
1284.16 	to a patient; or
1284.17 	(12) makes a false statement or knowingly provides false information to the board, or 
1284.18 	fails to cooperate with an investigation of the board as required by section 144E.30.
1284.19 	(b) Before taking action under paragraph (a), the board shall give notice to an individual 
1284.20 	of the right to a contested case hearing under chapter 14. If an individual requests a contested 
1284.21 	case hearing within 30 days after receiving notice, the board shall initiate a contested case 
1284.22 	hearing according to chapter 14.
1284.23 	(c) The administrative law judge shall issue a report and recommendation within 30 
1284.24 	days after closing the contested case hearing record. The board shall issue a final order 
1284.25 	within 30 days after receipt of the administrative law judge's report.
1284.26 	(d) After six months from the board's decision to deny, revoke, place conditions on, or 
1284.27 	refuse renewal of an individual's registration for disciplinary action, the individual shall 
1284.28 	have the opportunity to apply to the board for reinstatement.

1284.29 	Sec. 7. Minnesota Statutes 2022, section 144E.27, subdivision 6, is amended to read:
1284.30 		Subd. 6.Temporary suspension; emergency medical responders and drivers. (a) 
1284.31 	This subdivision applies to emergency medical responders registered under this section and 
1284.32 	to individuals registered as drivers of basic life-support ambulances under section 144E.101, 
1285.1 	subdivision 6a. In addition to any other remedy provided by law, the board may temporarily 
1285.2 	suspend the registration of an individual after conducting a preliminary inquiry to determine 
1285.3 	whether the board believes that the individual has violated a statute or rule that the board 
1285.4 	is empowered to enforce and determining that the continued provision of service by the 
1285.5 	individual would create an imminent risk to public health or harm to others.
1285.6 	(b) A temporary suspension order prohibiting an individual from providing emergency 
1285.7 	medical care or from driving a basic life-support ambulance shall give notice of the right 
1285.8 	to a preliminary hearing according to paragraph (d) and shall state the reasons for the entry 
1285.9 	of the temporary suspension order.
1285.10 	(c) Service of a temporary suspension order is effective when the order is served on the 
1285.11 	individual personally or by certified mail, which is complete upon receipt, refusal, or return 
1285.12 	for nondelivery to the most recent address provided to the board for the individual.
1285.13 	(d) At the time the board issues a temporary suspension order, the board shall schedule 
1285.14 	a hearing, to be held before a group of its members designated by the board, that shall begin 
1285.15 	within 60 days after issuance of the temporary suspension order or within 15 working days 
1285.16 	of the date of the board's receipt of a request for a hearing from the individual, whichever 
1285.17 	is sooner. The hearing shall be on the sole issue of whether there is a reasonable basis to 
1285.18 	continue, modify, or lift the temporary suspension. A hearing under this paragraph is not 
1285.19 	subject to chapter 14.
1285.20 	(e) Evidence presented by the board or the individual may be in the form of an affidavit. 
1285.21 	The individual or the individual's designee may appear for oral argument.
1285.22 	(f) Within five working days of the hearing, the board shall issue its order and, if the 
1285.23 	suspension is continued, notify the individual of the right to a contested case hearing under 
1285.24 	chapter 14.
1285.25 	(g) If an individual requests a contested case hearing within 30 days after receiving 
1285.26 	notice under paragraph (f), the board shall initiate a contested case hearing according to 
1285.27 	chapter 14. The administrative law judge shall issue a report and recommendation within 
1285.28 	30 days after the closing of the contested case hearing record. The board shall issue a final 
1285.29 	order within 30 days after receipt of the administrative law judge's report.

1285.30 	Sec. 8. Minnesota Statutes 2022, section 144E.28, subdivision 3, is amended to read:
1285.31 		Subd. 3.Reciprocity. The board may certify an individual who possesses a current 
1285.32 	National Registry of Emergency Medical Technicians registration certification from another 
1285.33 	jurisdiction if the individual submits a board-approved application form. The board 
1286.1 	certification classification shall be the same as the National Registry's classification. 
1286.2 	Certification shall be for the duration of the applicant's registration certification period in 
1286.3 	another jurisdiction, not to exceed two years.

1286.4 	Sec. 9. Minnesota Statutes 2022, section 144E.28, subdivision 8, is amended to read:
1286.5 		Subd. 8.Reinstatement. (a) Within four years of a certification expiration date, a person 
1286.6 	whose certification has expired under subdivision 7, paragraph (d), may have the certification 
1286.7 	reinstated upon submission of:
1286.8 	(1) evidence to the board of training equivalent to the continuing education requirements 
1286.9 	of subdivision 7 or, for community paramedics, evidence to the board of training equivalent 
1286.10 	to the continuing education requirements of subdivision 9, paragraph (c); and
1286.11 	(2) a board-approved application form.
1286.12 	(b) If more than four years have passed since a certificate expiration date, an applicant 
1286.13 	must complete the initial certification process required under subdivision 1.
1286.14 	(c) Beginning July 1, 2024, through December 31, 2025, and notwithstanding paragraph 
1286.15 	(b), a person whose certification as an EMT, AEMT, paramedic, or community paramedic 
1286.16 	expired more than four years ago but less than ten years ago may have the certification 
1286.17 	reinstated upon submission of:
1286.18 	(1) evidence to the board of the training required under paragraph (a), clause (1). This 
1286.19 	training must have been completed within the 24 months prior to the date of the application 
1286.20 	for reinstatement;
1286.21 	(2) a board-approved application form; and
1286.22 	(3) a recommendation from an ambulance service medical director.
1286.23 	This paragraph expires December 31, 2025.

1286.24 	Sec. 10. Minnesota Statutes 2022, section 144E.285, subdivision 1, is amended to read:
1286.25 		Subdivision 1.Approval required. (a) All education programs for an EMR, EMT, 
1286.26 	AEMT, or paramedic must be approved by the board.
1286.27 	(b) To be approved by the board, an education program must:
1286.28 	(1) submit an application prescribed by the board that includes:
1286.29 	(i) type and length of course to be offered;
1287.1 	(ii) names, addresses, and qualifications of the program medical director, program 
1287.2 	education coordinator, and instructors;
1287.3 	(iii) names and addresses of clinical sites, including a contact person and telephone 
1287.4 	number;
1287.5 	(iv) (iii) admission criteria for students; and
1287.6 	(v) (iv) materials and equipment to be used;
1287.7 	(2) for each course, implement the most current version of the United States Department 
1287.8 	of Transportation EMS Education Standards, or its equivalent as determined by the board 
1287.9 	applicable to EMR, EMT, AEMT, or paramedic education;
1287.10 	(3) have a program medical director and a program coordinator;
1287.11 	(4) utilize instructors who meet the requirements of section 144E.283 for teaching at 
1287.12 	least 50 percent of the course content. The remaining 50 percent of the course may be taught 
1287.13 	by guest lecturers approved by the education program coordinator or medical director;
1287.14 	(5) have at least one instructor for every ten students at the practical skill stations;
1287.15 	(6) maintain a written agreement with a licensed hospital or licensed ambulance service 
1287.16 	designating a clinical training site;
1287.17 	(7) (5) retain documentation of program approval by the board, course outline, and 
1287.18 	student information;
1287.19 	(8) (6) notify the board of the starting date of a course prior to the beginning of a course;
1287.20 	and
1287.21 	(9) (7) submit the appropriate fee as required under section 144E.29; and.
1287.22 	(10) maintain a minimum average yearly pass rate as set by the board on an annual basis. 
1287.23 	The pass rate will be determined by the percent of candidates who pass the exam on the 
1287.24 	first attempt. An education program not meeting this yearly standard shall be placed on 
1287.25 	probation and shall be on a performance improvement plan approved by the board until 
1287.26 	meeting the pass rate standard. While on probation, the education program may continue 
1287.27 	providing classes if meeting the terms of the performance improvement plan as determined 
1287.28 	by the board. If an education program having probation status fails to meet the pass rate 
1287.29 	standard after two years in which an EMT initial course has been taught, the board may 
1287.30 	take disciplinary action under subdivision 5.

1288.1 	Sec. 11. Minnesota Statutes 2022, section 144E.285, is amended by adding a subdivision 
1288.2 	to read:
1288.3 		Subd. 1a.EMR education program requirements. The National EMS Education 
1288.4 	Standards established by the National Highway Traffic Safety Administration of the United 
1288.5 	States Department of Transportation specify the minimum requirements for knowledge and 
1288.6 	skills for emergency medical responders. An education program applying for approval to 
1288.7 	teach EMRs must comply with the requirements under subdivision 1, paragraph (b). A 
1288.8 	medical director of an emergency medical responder group may establish additional 
1288.9 	knowledge and skill requirements for EMRs.

1288.10 	Sec. 12. Minnesota Statutes 2022, section 144E.285, is amended by adding a subdivision 
1288.11 	to read:
1288.12 		Subd. 1b.EMT education program requirements. In addition to the requirements 
1288.13 	under subdivision 1, paragraph (b), an education program applying for approval to teach 
1288.14 	EMTs must:
1288.15 	(1) include in the application prescribed by the board the names and addresses of clinical 
1288.16 	sites, including a contact person and telephone number;
1288.17 	(2) maintain a written agreement with at least one clinical training site that is of a type 
1288.18 	recognized by the National EMS Education Standards established by the National Highway 
1288.19 	Traffic Safety Administration; and
1288.20 	(3) maintain a minimum average yearly pass rate as set by the board. An education 
1288.21 	program not meeting this standard must be placed on probation and must comply with a 
1288.22 	performance improvement plan approved by the board until the program meets the pass-rate 
1288.23 	standard. While on probation, the education program may continue to provide classes if the 
1288.24 	program meets the terms of the performance improvement plan, as determined by the board. 
1288.25 	If an education program that is on probation status fails to meet the pass-rate standard after 
1288.26 	two years in which an EMT initial course has been taught, the board may take disciplinary 
1288.27 	action under subdivision 5.

1288.28 	Sec. 13. Minnesota Statutes 2022, section 144E.285, subdivision 2, is amended to read:
1288.29 		Subd. 2.AEMT and paramedic education program requirements. (a) In addition to 
1288.30 	the requirements under subdivision 1, paragraph (b), an education program applying for 
1288.31 	approval to teach AEMTs and paramedics must:
1289.1 	(1) be administered by an educational institution accredited by the Commission of 
1289.2 	Accreditation of Allied Health Education Programs (CAAHEP).;
1289.3 	(2) include in the application prescribed by the board the names and addresses of clinical 
1289.4 	sites, including a contact person and telephone number; and
1289.5 	(3) maintain a written agreement with a licensed hospital or licensed ambulance service 
1289.6 	designating a clinical training site.
1289.7 	(b) An AEMT and paramedic education program that is administered by an educational 
1289.8 	institution not accredited by CAAHEP, but that is in the process of completing the 
1289.9 	accreditation process, may be granted provisional approval by the board upon verification 
1289.10 	of submission of its self-study report and the appropriate review fee to CAAHEP.
1289.11 	(c) An educational institution that discontinues its participation in the accreditation 
1289.12 	process must notify the board immediately and provisional approval shall be withdrawn.
1289.13 	(d) This subdivision does not apply to a paramedic education program when the program 
1289.14 	is operated by an advanced life-support ambulance service licensed by the Emergency 
1289.15 	Medical Services Regulatory Board under this chapter, and the ambulance service meets 
1289.16 	the following criteria:
1289.17 	(1) covers a rural primary service area that does not contain a hospital within the primary 
1289.18 	service area or contains a hospital within the primary service area that has been designated 
1289.19 	as a critical access hospital under section 144.1483, clause (9);
1289.20 	(2) has tax-exempt status in accordance with the Internal Revenue Code, section 
1289.21 	501(c)(3);
1289.22 	(3) received approval before 1991 from the commissioner of health to operate a paramedic 
1289.23 	education program;
1289.24 	(4) operates an AEMT and paramedic education program exclusively to train paramedics 
1289.25 	for the local ambulance service; and
1289.26 	(5) limits enrollment in the AEMT and paramedic program to five candidates per 
1289.27 	biennium.

1289.28 	Sec. 14. Minnesota Statutes 2022, section 144E.285, subdivision 4, is amended to read:
1289.29 		Subd. 4.Reapproval. An education program shall apply to the board for reapproval at 
1289.30 	least three months 30 days prior to the expiration date of its approval and must:
1290.1 	(1) submit an application prescribed by the board specifying any changes from the 
1290.2 	information provided for prior approval and any other information requested by the board 
1290.3 	to clarify incomplete or ambiguous information presented in the application; and
1290.4 	(2) comply with the requirements under subdivision 1, paragraph (b), clauses (2) to (10).
1290.5 	(7);
1290.6 	(3) be subject to a site visit by the board;
1290.7 	(4) for education programs that teach EMRs, comply with the requirements in subdivision 
1290.8 	1a;
1290.9 	(5) for education programs that teach EMTs, comply with the requirements in subdivision 
1290.10 	1b; and
1290.11 	(6) for education programs that teach AEMTs and paramedics, comply with the 
1290.12 	requirements in subdivision 2 and maintain accreditation with CAAHEP.

1290.13 	Sec. 15. REPEALER.
 1290.14 	Minnesota Statutes 2022, section 144E.27, subdivisions 1 and 1a, are repealed.

1290.15 	ARTICLE 66
1290.16 	MISCELLANEOUS

1290.17 	Section 1. Minnesota Statutes 2022, section 16A.055, subdivision 1a, is amended to read:
1290.18 		Subd. 1a.Additional duties Program evaluation and organizational development 
1290.19 	services. The commissioner may assist state agencies by providing analytical, statistical, 
1290.20 	program evaluation using experimental or quasi-experimental design, and organizational 
1290.21 	development services to state agencies in order to assist the agency to achieve the agency's 
1290.22 	mission and to operate efficiently and effectively. For purposes of this section, "experimental 
1290.23 	design" means a method of evaluating the impact of a service that uses random assignment 
1290.24 	to assign participants into groups that respectively receive the studied service and those that 
1290.25 	receive service as usual, so that any difference in outcomes found at the end of the evaluation 
1290.26 	can be attributed to the studied service; and "quasi-experimental design" means a method 
1290.27 	of evaluating the impact of a service that uses strategies other than random assignment to 
1290.28 	establish statistically similar groups that respectively receive the service and those that 
1290.29 	receive service as usual, so that any difference in outcomes found at the end of the evaluation 
1290.30 	can be attributed to the studied service.

1291.1 	Sec. 2. Minnesota Statutes 2022, section 16A.055, is amended by adding a subdivision to 
1291.2 	read:
1291.3 		Subd. 1b.Consultation to develop performance measures for grants. (a) The 
1291.4 	commissioner must, in consultation with the commissioners of health, human services, and 
1291.5 	children, youth, and families, develop an ongoing consultation schedule to create, review, 
1291.6 	and revise, as necessary, performance measures, data collection, and program evaluation 
1291.7 	plans for all state-funded grants administered by the commissioners of health, human 
1291.8 	services, and children, youth, and families that distribute at least $1,000,000 annually.
1291.9 	(b) Following the development of the ongoing consultation schedule under paragraph 
1291.10 	(a), the commissioner and the commissioner of the administering agency must conduct a 
1291.11 	grant program consultation in accordance with the ongoing consultation schedule. Each 
1291.12 	grant program consultation must include a review of performance measures, data collection, 
1291.13 	program evaluation plans, and reporting for each grant program. Following each consultation, 
1291.14 	the commissioner and the commissioner of the administering agency may revise evaluation 
1291.15 	metrics of a grant program. The commissioner may provide continuing support to the grant 
1291.16 	program in accordance with subdivision 1a.

1291.17 	Sec. 3. [137.095] EVIDENCE IN SUPPORT OF APPROPRIATION.
1291.18 		Subdivision 1.Written report. Prior to the introduction of a bill proposing to appropriate 
1291.19 	money to the Board of Regents of the University of Minnesota to benefit the University of 
1291.20 	Minnesota's health sciences schools and colleges, the proponents of the bill are requested 
1291.21 	to submit a written report to the chairs and ranking minority members of the legislative 
1291.22 	committees with jurisdiction over higher education and health and human services policy 
1291.23 	and finance setting out the information described in subdivision 2. The University of 
1291.24 	Minnesota's health sciences schools and colleges are medicine, nursing, public health, 
1291.25 	pharmacy, dentistry, and veterinary medicine.
1291.26 		Subd. 2.Contents of report. (a) The report requested under this section must include 
1291.27 	the following information as specifically as possible:
1291.28 	(1) the dollar amount requested;
1291.29 	(2) how the requested dollar amount was calculated;
1291.30 	(3) the necessity for the appropriation's purpose to be funded by public funds;
1291.31 	(4) University of Minnesota budgeting considerations and decisions impacting the 
1291.32 	necessity analysis required by clause (3);
1292.1 	(5) all goals, outcomes, and purposes of the appropriation;
1292.2 	(6) performance measures as defined by the University of Minnesota that the University 
1292.3 	of Minnesota will utilize to ensure the funds are dedicated to the successful achievement 
1292.4 	of the identified goals, outcomes, and purposes; and
1292.5 	(7) the extent to which the appropriation advances recruitment from, and training for 
1292.6 	and retention of, health professionals from and in greater Minnesota and from underserved 
1292.7 	communities in metropolitan areas.
1292.8 	(b) This subdivision only applies when the Board of Regents of the University of 
1292.9 	Minnesota approves a legislative funding request for the University of Minnesota's health 
1292.10 	sciences schools and colleges.
1292.11 		Subd. 3.Certifications for academic health. A report submitted under this section 
1292.12 	must include, in addition to the information listed in subdivision 2, a certification, by the 
1292.13 	University of Minnesota Vice President and Budget Director, that:
1292.14 	(1) the appropriation will not be used to cover academic health clinical revenue deficits;
1292.15 	(2) the goals, outcomes, and purposes of the appropriation are aligned with state goals 
1292.16 	for population health improvement; and
1292.17 	(3) the appropriation is aligned with the University of Minnesota's strategic plan for its 
1292.18 	health sciences schools and colleges, including but not limited to shared goals and strategies 
1292.19 	for the health professional schools.
1292.20 		Subd. 4.Right to request. The chair of a standing committee in either house of the 
1292.21 	legislature may request and obtain the reports submitted pursuant to this section from the 
1292.22 	chair of a legislative committee with jurisdiction over higher education or health and human 
1292.23 	services policy and finance.

1292.24 	Sec. 4. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
1292.25 	subdivision to read:
1292.26 		Subd. 2a.Grant consultation. The commissioner must consult with the commissioner 
1292.27 	of management and budget to create, review, and revise grant program performance measures 
1292.28 	and to evaluate grant programs administered by the commissioner in accordance with section 
1292.29 	16A.055, subdivisions 1a and 1b.

1293.1 	Sec. 5. Minnesota Statutes 2022, section 144.05, is amended by adding a subdivision to 
1293.2 	read:
1293.3 		Subd. 8.Grant consultation. The commissioner must consult with the commissioner 
1293.4 	of management and budget to create, review, and revise grant program performance measures 
1293.5 	and to evaluate grant programs administered by the commissioner in accordance with section 
1293.6 	16A.055, subdivisions 1a and 1b.

1293.7 	Sec. 6. Minnesota Statutes 2022, section 144.292, subdivision 6, is amended to read:
1293.8 		Subd. 6.Cost. (a) When a patient requests a copy of the patient's record for purposes of 
1293.9 	reviewing current medical care, the provider must not charge a fee.
1293.10 	(b) When a provider or its representative makes copies of patient records upon a patient's 
1293.11 	request under this section, the provider or its representative may charge the patient or the 
1293.12 	patient's representative no more than 75 cents per page, plus $10 for time spent retrieving 
1293.13 	and copying the records, unless other law or a rule or contract provide for a lower maximum 
1293.14 	charge. This limitation does not apply to x-rays. The provider may charge a patient no more 
1293.15 	than the actual cost of reproducing x-rays, plus no more than $10 for the time spent retrieving 
1293.16 	and copying the x-rays the following amount, unless other law or a rule or contract provide 
1293.17 	for a lower maximum charge:
1293.18 	(1) for paper copies, $1 per page, plus $10 for time spent retrieving and copying the 
1293.19 	records;
1293.20 	(2) for x-rays, a total of $30 for retrieving and reproducing x-rays; and
1293.21 	(3) for electronic copies, a total of $20 for retrieving the records.
1293.22 	(c) The respective maximum charges of 75 cents per page and $10 for time provided in 
1293.23 	this subdivision are in effect for calendar year 1992 and may be adjusted annually each 
1293.24 	calendar year as provided in this subdivision. The permissible maximum charges shall 
1293.25 	change each year by an amount that reflects the change, as compared to the previous year, 
1293.26 	in the Consumer Price Index for all Urban Consumers, Minneapolis-St. Paul (CPI-U), 
1293.27 	published by the Department of Labor. For any copies of paper records provided under 
1293.28 	paragraph (b), clause (1), a provider or the provider's representative may not charge more 
1293.29 	than a total of:
1293.30 	(1) $10 if there are no records available;
1293.31 	(2) $30 for copies of records of up to 25 pages;
1293.32 	(3) $50 for copies of records of up to 100 pages;
1294.1 	(4) $50, plus an additional 20 cents per page for pages 101 and above; or
1294.2 	(5) $500 for any request.
1294.3 	(d) A provider or its representative may charge the a $10 retrieval fee, but must not 
1294.4 	charge a per page fee or x-ray fee to provide copies of records requested by a patient or the 
1294.5 	patient's authorized representative if the request for copies of records is for purposes of 
1294.6 	appealing a denial of Social Security disability income or Social Security disability benefits 
1294.7 	under title II or title XVI of the Social Security Act; except that no fee shall be charged to 
1294.8 	a patient who is receiving public assistance, or to a patient who is represented by an attorney 
1294.9 	on behalf of a civil legal services program or a volunteer attorney program based on 
1294.10 	indigency. Notwithstanding the foregoing, a provider or its representative must not charge 
1294.11 	a fee, including a retrieval fee, to provide copies of records requested by a patient or the 
1294.12 	patient's authorized representative if the request for copies of records is for purposes of 
1294.13 	appealing a denial of Social Security disability income or Social Security disability benefits 
1294.14 	under title II or title XVI of the Social Security Act when the patient is receiving public 
1294.15 	assistance, represented by an attorney on behalf of a civil legal services program, or 
1294.16 	represented by a volunteer attorney program based on indigency. The patient or the patient's 
1294.17 	representative must submit one of the following to show that they are entitled to receive 
1294.18 	records without charge under this paragraph:
1294.19 	(1) a public assistance statement from the county or state administering assistance;
1294.20 	(2) a request for records on the letterhead of the civil legal services program or volunteer 
1294.21 	attorney program based on indigency; or
1294.22 	(3) a benefits statement from the Social Security Administration.
1294.23 	For the purpose of further appeals, a patient may receive no more than two medical record 
1294.24 	updates without charge, but only for medical record information previously not provided.
1294.25 	For purposes of this paragraph, a patient's authorized representative does not include units 
1294.26 	of state government engaged in the adjudication of Social Security disability claims.

1294.27 	EFFECTIVE DATE. This section is effective January 1, 2025.

1294.28 	Sec. 7. [144.2925] CONSTRUCTION.
1294.29 	Sections 144.291 to 144.298 must be construed to protect the privacy of a patient's health 
1294.30 	records in a more stringent manner than provided in Code of Federal Regulations, title 45, 
1294.31 	part 164. For purposes of this section, "more stringent" has the meaning given to that term 
1294.32 	in Code of Federal Regulations, title 45, section 160.202, with respect to a use or disclosure 
1295.1 	or the need for express legal permission from an individual to disclose individually 
1295.2 	identifiable health information.

1295.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

1295.4 	Sec. 8. Minnesota Statutes 2022, section 144.293, subdivision 2, is amended to read:
1295.5 		Subd. 2.Patient consent to release of records. A provider, or a person who receives 
1295.6 	health records from a provider, may not release a patient's health records to a person without:
1295.7 	(1) a signed and dated consent from the patient or the patient's legally authorized 
1295.8 	representative authorizing the release;
1295.9 	(2) specific authorization in Minnesota law; or
1295.10 	(3) a representation from a provider that holds a signed and dated consent from the 
1295.11 	patient authorizing the release.

1295.12 	EFFECTIVE DATE. This section is effective the day following final enactment and 
1295.13 	applies to health records released on or after that date.

1295.14 	Sec. 9. Minnesota Statutes 2022, section 144.293, subdivision 4, is amended to read:
1295.15 		Subd. 4.Duration of consent. Except as provided in this section, a consent is valid for 
1295.16 	one year or for a period specified in the consent or for a different period provided by 
1295.17 	Minnesota law.

1295.18 	EFFECTIVE DATE. This section is effective the day following final enactment and 
1295.19 	applies to health records released on or after that date.

1295.20 	Sec. 10. Minnesota Statutes 2022, section 144.293, subdivision 9, is amended to read:
1295.21 		Subd. 9.Documentation of release. (a) In cases where a provider releases health records 
1295.22 	without patient consent as authorized by Minnesota law, the release must be documented 
1295.23 	in the patient's health record. In the case of a release under section 144.294, subdivision 2, 
1295.24 	the documentation must include the date and circumstances under which the release was 
1295.25 	made, the person or agency to whom the release was made, and the records that were released.
1295.26 	(b) When a health record is released using a representation from a provider that holds a 
1295.27 	consent from the patient, the releasing provider shall document:
1295.28 	(1) the provider requesting the health records;
1295.29 	(2) the identity of the patient;
1296.1 	(3) the health records requested; and
1296.2 	(4) the date the health records were requested.

1296.3 	EFFECTIVE DATE. This section is effective the day following final enactment and 
1296.4 	applies to health records released on or after that date.

1296.5 	Sec. 11. Minnesota Statutes 2022, section 144.293, subdivision 10, is amended to read:
1296.6 		Subd. 10.Warranties regarding consents, requests, and disclosures. (a) When 
1296.7 	requesting health records using consent, a person warrants that the consent:
1296.8 	(1) contains no information known to the person to be false; and
1296.9 	(2) accurately states the patient's desire to have health records disclosed or that there is 
1296.10 	specific authorization in Minnesota law.
1296.11 	(b) When requesting health records using consent, or a representation of holding a 
1296.12 	consent, a provider warrants that the request:
1296.13 	(1) contains no information known to the provider to be false;
1296.14 	(2) accurately states the patient's desire to have health records disclosed or that there is 
1296.15 	specific authorization in Minnesota law; and
1296.16 	(3) does not exceed any limits imposed by the patient in the consent.
1296.17 	(c) When disclosing health records, a person releasing health records warrants that the 
1296.18 	person:
1296.19 	(1) has complied with the requirements of this section regarding disclosure of health 
1296.20 	records;
1296.21 	(2) knows of no information related to the request that is false; and
1296.22 	(3) has complied with the limits set by the patient in the consent.

1296.23 	EFFECTIVE DATE. This section is effective the day following final enactment and 
1296.24 	applies to health records released on or after that date.

1296.25 	Sec. 12. Minnesota Statutes 2023 Supplement, section 245.991, subdivision 1, is amended 
1296.26 	to read:
1296.27 		Subdivision 1.Establishment. The commissioner of human services must establish the 
1296.28 	projects for assistance in transition from homelessness program to prevent or end 
1296.29 	homelessness for people with serious mental illness, substance use disorder, or co-occurring 
1297.1 	substance use disorder and ensure the commissioner achieves the goals of the housing 
1297.2 	mission statement in section 245.461, subdivision 4.

1297.3 	Sec. 13. Minnesota Statutes 2023 Supplement, section 245C.31, subdivision 1, is amended 
1297.4 	to read:
1297.5 		Subdivision 1.Board determines disciplinary or corrective action. (a) The 
1297.6 	commissioner shall notify a health-related licensing board as defined in section 214.01, 
1297.7 	subdivision 2, if the commissioner determines that an individual who is licensed by the 
1297.8 	health-related licensing board and who is included on the board's roster list provided in 
1297.9 	accordance with subdivision 3a is responsible for substantiated maltreatment under section 
1297.10 	626.557 or chapter 260E, in accordance with subdivision 2. Upon receiving notification
1297.11 	Except as provided in paragraph (b), the health-related licensing board shall make a 
1297.12 	determination as to whether to impose disciplinary or corrective action under chapter 214, 
1297.13 	rather than the commissioner making the decision regarding disqualification.
1297.14 	(b) The prohibition on disqualification in paragraph (a) does not apply to a background 
1297.15 	study of an individual regulated by a health-related licensing board if the individual's study 
1297.16 	is related to child foster care, adult foster care, or family child care licensure.

1297.17 	Sec. 14. Minnesota Statutes 2022, section 256.01, is amended by adding a subdivision to 
1297.18 	read:
1297.19 		Subd. 2c.Grant consultation. The commissioner must consult with the commissioner 
1297.20 	of management and budget to create, review, and revise grant program performance measures 
1297.21 	and to evaluate grant programs administered by the commissioner in accordance with section 
1297.22 	16A.055, subdivisions 1a and 1b.

1297.23 	Sec. 15. Minnesota Statutes 2022, section 256.01, subdivision 41, is amended to read:
1297.24 		Subd. 41.Reports on interagency agreements and intra-agency transfers. (a) 
1297.25 	Beginning October 31, 2024, and annually thereafter, the commissioner of human services 
1297.26 	shall provide quarterly reportsa report to the chairs and ranking minority members of the 
1297.27 	legislative committees with jurisdiction over health and human services policy and finance 
1297.28 	on:
1297.29 	(1) interagency agreements or service-level agreements and any renewals or extensions 
1297.30 	of existing interagency or service-level agreements with a state department under section 
1297.31 	15.01, state agency under section 15.012, or the Department of Information Technology 
1298.1 	Services, with a value of more than $100,000, or related agreements with the same department 
1298.2 	or agency with a cumulative value of more than $100,000; and
1298.3 	(2) transfers of appropriations of more than $100,000 between accounts within or between 
1298.4 	agencies.
1298.5 	The report must include the statutory citation authorizing the agreement, transfer or dollar 
1298.6 	amount, purpose, and effective date of the agreement, the duration of the agreement, and a 
1298.7 	copy of the agreement.
1298.8 	(b) This subdivision expires December 31, 2034.

1298.9 	Sec. 16. Minnesota Statutes 2022, section 256B.795, is amended to read:
1298.10 	256B.795 MATERNAL AND INFANT HEALTH REPORT.
1298.11 	(a) The commissioner of human services, in consultation with the commissioner of 
1298.12 	health, shall submit a biennial report beginning April 15, 2022, to the chairs and ranking 
1298.13 	minority members of the legislative committees with jurisdiction over health policy and 
1298.14 	finance on the effectiveness of state maternal and infant health policies and programs 
1298.15 	addressing health disparities in prenatal and postpartum health outcomes. For each reporting 
1298.16 	period, the commissioner shall determine the number of women enrolled in the medical 
1298.17 	assistance program who are pregnant or are in the 12-month postpartum period of eligibility 
1298.18 	and the percentage of women in that group who, during each reporting period:
1298.19 	(1) received prenatal services;
1298.20 	(2) received doula services;
1298.21 	(3) gave birth by primary cesarean section;
1298.22 	(4) gave birth to an infant who received care in the neonatal intensive care unit;
1298.23 	(5) gave birth to an infant who was premature or who had a low birth weight;
1298.24 	(6) experienced postpartum hemorrhage;
1298.25 	(7) received postpartum care within six weeks of giving birth; and
1298.26 	(8) received a prenatal and postpartum follow-up home visit from a public health nurse.
1298.27 	(b) These measurements must be determined through an analysis of the utilization data 
1298.28 	from claims submitted during each reporting period and by any other appropriate means. 
1298.29 	The measurements for each metric must be determined in the aggregate stratified by race 
1298.30 	and ethnicity.
1299.1 	(c) The commissioner shall establish a baseline for the metrics described in paragraph 
1299.2 	(a) using calendar year 2017. The initial report due April 15, 2022, must contain the baseline 
1299.3 	metrics and the metrics data for calendar years 2019 and 2020. The following reports due 
1299.4 	biennially thereafter must contain the metrics for the preceding two calendar years.
1299.5 	(d) This section expires December 31, 2034.

1299.6 	Sec. 17. Minnesota Statutes 2022, section 256K.45, subdivision 2, is amended to read:
1299.7 		Subd. 2.Homeless youth report. (a) The commissioner shall prepare a biennial report, 
1299.8 	beginning in February 2015 February 1, 2025, which provides meaningful information to 
1299.9 	the chairs and ranking minority members of the legislative committees having with
1299.10 	jurisdiction over the issue of homeless youth, that includes, but is not limited to: (1) a list 
1299.11 	of the areas of the state with the greatest need for services and housing for homeless youth, 
1299.12 	and the level and nature of the needs identified; (2) details about grants made, including 
1299.13 	shelter-linked youth mental health grants under section 256K.46; (3) the distribution of 
1299.14 	funds throughout the state based on population need; (4) follow-up information, if available, 
1299.15 	on the status of homeless youth and whether they have stable housing two years after services 
1299.16 	are provided; and (5) any other outcomes for populations served to determine the 
1299.17 	effectiveness of the programs and use of funding.
1299.18 	(b) This subdivision expires December 31, 2034.

1299.19 	Sec. 18. Minnesota Statutes 2023 Supplement, section 260.761, is amended by adding a 
1299.20 	subdivision to read:
1299.21 		Subd. 8.Missing child notification. A child-placing agency or individual petitioner 
1299.22 	shall notify an Indian child's Tribe or Tribes by telephone and by email or facsimile 
1299.23 	immediately but no later than 24 hours after receiving information on a missing child as 
1299.24 	defined under section 260C.212, subdivision 13, paragraph (a).

1299.25 	Sec. 19. 2024 H.F. No. 5237, article 22, section 2, subdivision 4, if enacted, is amended 
1299.26 	to read:

1299.27	Subd. 4.Central Office; Health Care
 		(3,216,000)
		3,216,000
	
1299.28 	The appropriation in fiscal year 2025 is a 
1299.29 	onetime appropriation.

1300.1 	Sec. 20. 2024 H.F. No. 5237, article 22, section 2, subdivision 5, if enacted, is amended 
1300.2 	to read:

1300.3
1300.4	Subd. 5.Central Office; Behavioral Health, Deaf 
and Hard-of-Hearing, and Housing Services
 		(136,000)
		136,000
	
1300.5 	The appropriation in fiscal year 2025 is a 
1300.6 	onetime appropriation.
1300.7 	Extended Availability. $136,000 of the 
1300.8 	general fund appropriation in fiscal year 2025 
1300.9 	is available until June 30, 2027.

1300.10 	Sec. 21. ANNUAL REPORT TO LEGISLATURE; USE OF APPROPRIATION 
1300.11 	FUNDS.
 1300.12 	By January 15, 2025, and every year thereafter, the Board of Regents of the University 
1300.13 	of Minnesota must submit a report to the chairs and ranking minority members of the 
1300.14 	legislative committees with primary jurisdiction over higher education and health and human 
1300.15 	services policy and finance on the use of all appropriations for the benefit of the University 
1300.16 	of Minnesota's health sciences schools and colleges, including:
1300.17 	(1) changes to the University of Minnesota's anticipated uses of each appropriation;
1300.18 	(2) the results of the performance measures required by Minnesota Statutes, section 
1300.19 	137.095, subdivision 2, clause (6); and
1300.20 	(3) current and anticipated achievement of the goals, outcomes, and purposes of each 
1300.21 	appropriation.

1300.22 	Sec. 22. DIRECTION TO COMMISSIONER OF HEALTH; HEALTH 
1300.23 	PROFESSIONS WORKFORCE ADVISORY COUNCIL.
 1300.24 		Subdivision 1.Health professions workforce advisory council. The commissioner of 
1300.25 	health, in consultation with the University of Minnesota and the Minnesota State HealthForce 
1300.26 	Center of Excellence, shall provide recommendations to the legislature for the creation of 
1300.27 	a health professions workforce advisory council to:
1300.28 	(1) research and advise the legislature and the Minnesota Office of Higher Education 
1300.29 	on the status of the health workforce who are in training and on the need for additional or 
1300.30 	different training opportunities;
1301.1 	(2) provide information and analysis on health workforce needs and trends, upon request, 
1301.2 	to the legislature, any state department, or any other entity the advisory council deems 
1301.3 	appropriate;
1301.4 	(3) review and comment on legislation relevant to Minnesota's health workforce; and
1301.5 	(4) study and provide recommendations regarding the following:
1301.6 	(i) health workforce supply, including:
1301.7 	(A) employment trends and demand;
1301.8 	(B) strategies that entities in Minnesota are using or may use to address health workforce 
1301.9 	shortages, recruitment, and retention; and
1301.10 	(C) future investments to increase the supply of health care professionals, with particular 
1301.11 	focus on critical areas of need within Minnesota;
1301.12 	(ii) options for training and educating the health workforce, including:
1301.13 	(A) increasing the diversity of health professions workers to reflect Minnesota's 
1301.14 	communities;
1301.15 	(B) addressing the maldistribution of primary, mental health, nursing, and dental providers 
1301.16 	in greater Minnesota and in underserved communities in metropolitan areas;
1301.17 	(C) increasing interprofessional training and clinical practice;
1301.18 	(D) addressing the need for increased quality faculty to train an increased workforce; 
1301.19 	and
1301.20 	(E) developing advancement paths or career ladders for health care professionals;
1301.21 	(iii) increasing funding for strategies to diversify and address gaps in the health workforce, 
1301.22 	including:
1301.23 	(A) increasing access to financing for graduate medical education;
1301.24 	(B) expanding pathway programs to increase awareness of the health care professions 
1301.25 	among high school, undergraduate, and community college students and engaging the current 
1301.26 	health workforce in those programs;
1301.27 	(C) reducing or eliminating tuition for entry-level health care positions that offer 
1301.28 	opportunities for future advancement in high-demand settings and expanding other existing 
1301.29 	financial support programs such as loan forgiveness and scholarship programs;
1302.1 	(D) incentivizing recruitment from greater Minnesota and recruitment and retention for 
1302.2 	providers practicing in greater Minnesota and in underserved communities in metropolitan 
1302.3 	areas; and
1302.4 	(E) expanding existing programs, or investing in new programs, that provide wraparound 
1302.5 	support services to the existing health care workforce, especially people of color and 
1302.6 	professionals from other underrepresented identities, to acquire training and advance within 
1302.7 	the health care workforce; and
1302.8 	(iv) other Minnesota health workforce priorities as determined by the advisory council.
1302.9 		Subd. 2.Report to the legislature. On or before February 1, 2025, the commissioner 
1302.10 	of health shall submit a report to the chairs and ranking minority members of the legislative 
1302.11 	committees with jurisdiction over health and human services and higher education finance 
1302.12 	and policy with recommendations for the creation of a health professions workforce advisory 
1302.13 	council as described in subdivision 1. The report must include recommendations regarding:
1302.14 	(1) membership of the advisory council;
1302.15 	(2) funding sources and estimated costs for the advisory council;
1302.16 	(3) existing sources of workforce data for the advisory council to perform its duties;
1302.17 	(4) necessity for and options to obtain new data for the advisory council to perform its 
1302.18 	duties;
1302.19 	(5) additional duties of the advisory council;
1302.20 	(6) proposed legislation to establish the advisory council;
1302.21 	(7) similar health workforce advisory councils in other states; and
1302.22 	(8) advisory council reporting requirements.

1302.23 	Sec. 23. REQUEST FOR INFORMATION; EVALUATION OF STATEWIDE 
1302.24 	HEALTH CARE NEEDS AND CAPACITY AND PROJECTIONS OF FUTURE 
1302.25 	HEALTH CARE NEEDS.
 1302.26 	(a) By November 1, 2024, the commissioner of health must publish a request for 
1302.27 	information to assist the commissioner in a future comprehensive evaluation of current 
1302.28 	health care needs and capacity in the state and projections of future health care needs in the 
1302.29 	state based on population and provider characteristics. The request for information:
1303.1 	(1) must provide guidance on defining the scope of the study and assist in answering 
1303.2 	methodological questions that will inform the development of a request for proposals to 
1303.3 	contract for performance of the study; and
1303.4 	(2) may address topics that include but are not limited to how to define health care 
1303.5 	capacity, expectations for capacity by geography or service type, how to consider health 
1303.6 	centers that have areas of particular expertise or services that generally have a higher margin, 
1303.7 	how hospital-based services should be considered as compared with evolving 
1303.8 	nonhospital-based services, the role of technology in service delivery, health care workforce 
1303.9 	supply issues, and other issues related to data or methods.
1303.10 	(b) By February 1, 2025, the commissioner must submit a report to the chairs and ranking 
1303.11 	minority members of the legislative committees with jurisdiction over health care, with the 
1303.12 	results of the request for information and recommendations regarding conducting a 
1303.13 	comprehensive evaluation of current health care needs and capacity in the state and 
1303.14 	projections of future health care needs in the state.

1303.15 	Sec. 24. EXEMPTION.
 1303.16 	The contract requirements under Minnesota Statutes, chapter 16C, do not apply to Laws 
1303.17 	2023, chapter 70, article 20, section 2, subdivision 5, paragraph (d).

1303.18 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2023.

1303.19 	Sec. 25. REPEALER.
 1303.20 	Minnesota Statutes 2022, section 256B.79, subdivision 6, is repealed.

1303.21 	ARTICLE 67
1303.22 	APPROPRIATIONS

1303.23	Section 1. HEALTH AND HUMAN SERVICES APPROPRIATIONS.
 	
1303.24 	The sums shown in the columns marked "Appropriations" are added to or, if shown in 
1303.25 	parentheses, subtracted from the appropriations in Laws 2023, chapter 61, article 9; Laws 
1303.26 	2023, chapter 70, article 20; and Laws 2023, chapter 74, section 6, to the agencies and for 
1303.27 	the purposes specified in this article. The appropriations are from the general fund or other 
1303.28 	named fund and are available for the fiscal years indicated for each purpose. The figures 
1303.29 	"2024" and "2025" used in this article mean that the addition to or subtraction from the 
1303.30 	appropriation listed under them is available for the fiscal year ending June 30, 2024, or June 
1303.31 	30, 2025, respectively. Base adjustments mean the addition to or subtraction from the base 
1303.32 	level adjustment set in Laws 2023, chapter 61, article 9; Laws 2023, chapter 70, article 20; 
1304.1 	and Laws 2023, chapter 74, section 6. Supplemental appropriations and reductions to 
1304.2 	appropriations for the fiscal year ending June 30, 2024, are effective the day following final 
1304.3 	enactment unless a different effective date is explicit.

1304.4				APPROPRIATIONS
	
1304.5				Available for the Year
	
1304.6				Ending June 30
	
1304.7					2024
		2025

1304.8
1304.9	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

1304.10	Subdivision 1.Total Appropriation
 	$
	(22,695,000)
	$
	23,032,000

1304.11	Appropriations by Fund
	
1304.12		2024
	2025
	
1304.13	General
	(22,695,000)
	23,132,000
	
1304.14	Health Care Access
	-0-
	(100,000)
	
1304.15 	The amounts that may be spent for each 
1304.16 	purpose are specified in the following 
1304.17 	subdivisions.

1304.18	Subd. 2.Central Office; Operations
 		-0-
		(1,907,000)
	
1304.19 	Base Level Adjustment. The general fund 
1304.20 	base is increased by $239,000 in fiscal year 
1304.21 	2026 and increased by $181,000 in fiscal year 
1304.22 	2027.

1304.23	Subd. 3.Central Office; Health Care

1304.24	Appropriations by Fund
	
1304.25	General
	-0-
	540,000
	
1304.26	Health Care Access
	(1,000,000)
	-0-
	
1304.27 	Base Level Adjustment. The general fund 
1304.28 	base is increased by $1,063,000 in fiscal year 
1304.29 	2026 and increased by $1,063,000 in fiscal 
1304.30 	year 2027.

1304.31
1304.32	Subd. 4.Central Office; Behavioral Health, Deaf 
and Hard-of-Hearing, and Housing Services
 		-0-
		2,036,000
	
1304.33 	(a) The appropriation in fiscal year 2025 is a 
1304.34 	onetime appropriation.
1305.1 	(b) Medical Assistance Mental Health 
1305.2 	Benefit Development. $1,227,000 in fiscal 
1305.3 	year 2025 is to: (1) conduct an analysis to 
1305.4 	identify existing or pending Medicaid 
1305.5 	Clubhouse benefits in other states, federal 
1305.6 	authorities used, populations served, service 
1305.7 	and reimbursement design, and accreditation 
1305.8 	standards; (2) consult with providers, 
1305.9 	advocates, Tribal Nations, counties, people 
1305.10 	with lived experience as or with a child in a 
1305.11 	mental health crisis, and other interested 
1305.12 	community members to develop a covered 
1305.13 	benefit under medical assistance to provide 
1305.14 	residential mental health crisis stabilization 
1305.15 	for children; and (3) develop a First Episode 
1305.16 	Psychosis Coordinated Specialty Care 
1305.17 	(FEP-CSC) medical assistance benefit. This 
1305.18 	is a onetime appropriation and is available 
1305.19 	until June 30, 2027.

1305.20	Subd. 5.Forecasted Programs; MinnesotaCare
 		-0-
		343,000
	
1305.21 	(a) This appropriation is from the health care 
1305.22 	access fund.
1305.23 	(b) Base Level Adjustment. The health care 
1305.24 	access fund base is increased by $1,165,000 
1305.25 	in fiscal year 2026 and increased by 
1305.26 	$1,713,000 in fiscal year 2027.

1305.27
1305.28	Subd. 6.Forecasted Programs; Medical 
Assistance

1305.29	Appropriations by Fund
	
1305.30	General
	-0-
	6,527,000
	
1305.31	Health Care Access
	1,000,000
	(443,000)
	
1305.32 	(a) Additional Payment for Behavioral 
1305.33 	Health Services Provided by Hospitals.
1305.34 	$5,814,000 in fiscal year 2025 is from the 
1305.35 	general fund for behavioral health services 
1306.1 	provided by hospitals under Minnesota 
1306.2 	Statutes, section 256.969, subdivision 2b, 
1306.3 	paragraph (a), clause (4). The increase in 
1306.4 	payments shall be made by increasing the 
1306.5 	adjustment under Minnesota Statutes, section 
1306.6 	256.969, subdivision 2b, paragraph (e), clause 
1306.7 	(2).
1306.8 	(b) Base Level Adjustment. The health care 
1306.9 	access fund base is decreased by $1,265,000 
1306.10 	in fiscal year 2026 and decreased by 
1306.11 	$1,813,000 in fiscal year 2027.

1306.12
1306.13	Subd. 7.Forecasted Programs; Behavioral 
Health Fund
 		-0-
		127,000

1306.14
1306.15	Subd. 8.Grant Programs; Adult Mental Health 
Grants
 		(22,695,000)
		14,568,000
	
1306.16 	(a) Youable Emotional Health. $300,000 in 
1306.17 	fiscal year 2025 is for a grant to Youable 
1306.18 	Emotional Health for day treatment 
1306.19 	transportation costs on nonschool days, student 
1306.20 	nutrition, and student learning experiences 
1306.21 	such as technology, arts, and outdoor activity. 
1306.22 	This is a onetime appropriation. 
1306.23 	Notwithstanding Minnesota Statutes, section 
1306.24 	16B.98, subdivision 14, the amount for 
1306.25 	administrative costs under this paragraph is 
1306.26 	$0.
1306.27 	(b) Comunidades Latinas Unidas En 
1306.28 	Servercio Certified Community Behavioral 
1306.29 	Health Clinic Services. $1,500,000 in fiscal 
1306.30 	year 2025 is for a payment to Comunidades 
1306.31 	Latinas Unidas En Servercio (CLUES) to 
1306.32 	provide comprehensive integrated health care 
1306.33 	through the certified community behavioral 
1306.34 	health clinic (CCBHC) model of service 
1306.35 	delivery as required under Minnesota Statutes, 
1307.1 	section 245.735. Funds must be used to 
1307.2 	provide evidence-based services under the 
1307.3 	CCBHC service model and must not be used 
1307.4 	to supplant available medical assistance 
1307.5 	funding. By June 30, 2026, CLUES must 
1307.6 	report to the commissioner of human services 
1307.7 	on:
1307.8 	(1) the number of people served;
1307.9 	(2) outcomes for people served; and
1307.10 	(3) whether the funding reduced behavioral 
1307.11 	health racial and ethnic disparities.
1307.12 	This is a onetime appropriation and is 
1307.13 	available until June 30, 2026. Notwithstanding 
1307.14 	Minnesota Statutes, section 16B.98, 
1307.15 	subdivision 14, the amount for administrative 
1307.16 	costs under this paragraph is $0.
1307.17 	(c) Grant to PFund Foundation. $1,000,000 
1307.18 	in fiscal year 2025 is for a payment to the 
1307.19 	PFund Foundation for grants in Minnesota to 
1307.20 	support the medical, mental health, and social 
1307.21 	service needs of LGBTQIA2S+ individuals. 
1307.22 	This is a onetime appropriation.
1307.23 	(d) Adult Mental Health Initiative 
1307.24 	Appropriation Cancellation and 
1307.25 	Appropriation. $11,768,000 of the fiscal year 
1307.26 	2024 appropriation for the adult mental health 
1307.27 	initiative is canceled and $11,768,000 in fiscal 
1307.28 	year 2025 is for the adult mental health 
1307.29 	initiative. This is a onetime appropriation.

1307.30
1307.31	Subd. 9.Grant Programs; Child Mental Health 
Grants
 		-0-
		7,350,000
	
1307.32 	(a) School-Linked Behavioral Health 
1307.33 	Grants. $3,000,000 in fiscal year 2025 is for 
1307.34 	school-linked behavioral health grants under 
1308.1 	Minnesota Statutes, section 245.4901. This is 
1308.2 	a onetime appropriation and is available until 
1308.3 	June 30, 2027. Notwithstanding Minnesota 
1308.4 	Statutes, section 16B.98, subdivision 14, the 
1308.5 	amount for administrative costs under this 
1308.6 	paragraph is $0.
1308.7 	(b) Respite Care Services. $2,650,000 in 
1308.8 	fiscal year 2025 is for respite care services 
1308.9 	under Minnesota Statutes, section 245.4889, 
1308.10 	subdivision 1, paragraph (b), clause (3). This 
1308.11 	is a onetime appropriation and is available 
1308.12 	until June 30, 2027. Notwithstanding 
1308.13 	Minnesota Statutes, section 16B.98, 
1308.14 	subdivision 14, the amount for administrative 
1308.15 	costs under this paragraph is $515,000.
1308.16 	(c) Grant to Volunteers of America.
1308.17 	$1,700,000 in fiscal year 2025 is for a grant 
1308.18 	to Volunteers of America for program 
1308.19 	consolidation, workforce training, and the 
1308.20 	development of a trauma-informed locked 
1308.21 	setting environment. This is a onetime 
1308.22 	appropriation and is available until June 30, 
1308.23 	2027. Notwithstanding Minnesota Statutes, 
1308.24 	section 16B.98, subdivision 14, the amount 
1308.25 	for administrative costs under this paragraph 
1308.26 	is $0.

1308.27
1308.28	Subd. 10.Direct Care and Treatment; Mental 
Health and Substance Abuse
 		-0-
		(6,109,000)
	
1308.29 	Base Level Adjustments. The general fund 
1308.30 	base is decreased by $7,566,000 in fiscal year 
1308.31 	2026 and decreased by $7,566,000 in fiscal 
1308.32 	year 2027.

1308.33 	EFFECTIVE DATE. This section is effective the day following final enactment.

1308.34	Sec. 3. COMMISSIONER OF HEALTH

1309.1	Subdivision 1.Total Appropriation
 	$
	(2,690,000)
	$
	(251,000)

1309.2	Appropriations by Fund
	
1309.3		2024
	2025
	
1309.4	General
	(2,694,000)
	2,485,000
	
1309.5
1309.6	State Government 
Special Revenue
	4,000
	(2,736,000)
	
1309.7 	The amount that may be spent for each 
1309.8 	purpose is specified in the following 
1309.9 	subdivisions.

1309.10	Subd. 2.Health Improvement
 		(2,694,000)
		2,075,000
	
1309.11 	(a) Stillbirth Prevention Grant. $210,000 in 
1309.12 	fiscal year 2025 is for a grant to Healthy Birth 
1309.13 	Day, Inc., to operate a stillbirth prevention 
1309.14 	through tracking fetal movement pilot 
1309.15 	program. This is a onetime appropriation and 
1309.16 	is available until June 30, 2028. In accordance 
1309.17 	with Minnesota Statutes, section 16B.98, 
1309.18 	subdivision 14, the commissioner may use 
1309.19 	$10,000 of this appropriation for 
1309.20 	administrative costs.
1309.21 	(b) Grant to Chosen Vessels Midwifery 
1309.22 	Services. $263,000 in fiscal year 2025 is for 
1309.23 	a grant to Chosen Vessels Midwifery Services 
1309.24 	for a program to provide education, support, 
1309.25 	and encouragement for African American 
1309.26 	mothers to breastfeed their infants for the first 
1309.27 	year of life or longer. Chosen Vessel 
1309.28 	Midwifery Services must combine the midwife 
1309.29 	model of care with the cultural tradition of 
1309.30 	mutual aid to inspire African American 
1309.31 	women to breastfeed their infants and to 
1309.32 	provide support to those who do. This is a 
1309.33 	onetime appropriation and is available until 
1309.34 	June 30, 2026. In accordance with Minnesota 
1309.35 	Statutes, section 16B.98, subdivision 14, the 
1310.1 	commissioner may use $13,000 of this 
1310.2 	appropriation for administrative costs.
1310.3 	(c) American Indian Birth Center Planning 
1310.4 	Grant. $368,000 in fiscal year 2025 is for a 
1310.5 	grant to the Birth Justice Collaborative to plan 
1310.6 	for and engage the community in the 
1310.7 	development of an American Indian-focused 
1310.8 	birth center to improve access to culturally 
1310.9 	centered prenatal and postpartum care with 
1310.10 	the goal of improving maternal and child 
1310.11 	health outcomes. The Birth Justice 
1310.12 	Collaborative must report to the commissioner 
1310.13 	on the plan to develop an American 
1310.14 	Indian-focused birth center. This is a onetime 
1310.15 	appropriation. In accordance with Minnesota 
1310.16 	Statutes, section 16B.98, subdivision 14, the 
1310.17 	commissioner may use $18,000 of this 
1310.18 	appropriation for administrative costs.
1310.19 	(d) Grant to Birth Justice Collaborative for 
1310.20 	African American-Focused Homeplace 
1310.21 	Model. $263,000 in fiscal year 2025 is for a 
1310.22 	grant to the Birth Justice Collaborative for 
1310.23 	planning and community engagement to 
1310.24 	develop a replicable African 
1310.25 	American-focused Homeplace model. The 
1310.26 	model's purpose must be to improve access to 
1310.27 	culturally centered healing and care during 
1310.28 	pregnancy and the postpartum period, with 
1310.29 	the goal of improving maternal and child 
1310.30 	health outcomes. The Birth Justice 
1310.31 	Collaborative must report to the commissioner 
1310.32 	on the needs of and plan to develop an African 
1310.33 	American-focused Homeplace model in 
1310.34 	Hennepin County. The report must outline 
1310.35 	potential state and public partnerships and 
1311.1 	financing strategies and must provide a 
1311.2 	timeline for development. This is a onetime 
1311.3 	appropriation. In accordance with Minnesota 
1311.4 	Statutes, section 16B.98, subdivision 14, the 
1311.5 	commissioner may use $13,000 of this 
1311.6 	appropriation for administrative costs.
1311.7 	(e) Request for Information; Evaluation of 
1311.8 	Statewide Health Care Needs and Capacity.
1311.9 	$250,000 in fiscal year 2025 is for a request 
1311.10 	for information for a future evaluation of 
1311.11 	statewide health care needs and capacity and 
1311.12 	projections of future health care needs. This 
1311.13 	is a onetime appropriation.
1311.14 	(f) Reports on Prior Authorization 
1311.15 	Requests. $191,000 in fiscal year 2025 is for 
1311.16 	the purposes of Minnesota Statutes, section 
1311.17 	62M.19. This appropriation is available until 
1311.18 	June 30, 2027. The base for this appropriation 
1311.19 	is $21,000 in fiscal year 2026 and $22,000 in 
1311.20 	fiscal year 2027.
1311.21 	(g) Base Level Adjustment. The general fund 
1311.22 	base is increased by $247,000 in fiscal year 
1311.23 	2026 and increased by $318,000 in fiscal year 
1311.24 	2027.

1311.25	Subd. 3.Health Protection

1311.26	Appropriations by Fund
	
1311.27	General
	-0-
	410,000
	
1311.28
1311.29	State Government 
Special Revenue
	4,000
	(2,736,000)
	
1311.30 	(a) Translation of Competency Evaluation 
1311.31 	for Nursing Assistant Registry. $20,000 in 
1311.32 	fiscal year 2025 is from the general fund for 
1311.33 	translation of competency evaluation materials 
1311.34 	for the nursing assistant registry. This is a 
1311.35 	onetime appropriation.
1312.1 	(b) Hospital Closure, Relocation, or Service 
1312.2 	Cessation. $9,000 in fiscal year 2025 is from 
1312.3 	the general fund for activities under Minnesota 
1312.4 	Statutes, section 144.555.
1312.5 	(c) Natural Organic Reduction. $140,000 in 
1312.6 	fiscal year 2025 is from the state government 
1312.7 	special revenue fund for the licensure of 
1312.8 	natural organic reduction facilities. The base 
1312.9 	for this appropriation is $85,000 in fiscal year 
1312.10 	2026 and $16,000 in fiscal year 2027.
1312.11 	(d) Groundwater Thermal Exchange Device 
1312.12 	Permitting. $4,000 in fiscal year 2024 and 
1312.13 	$4,000 in fiscal year 2025 are from the state 
1312.14 	government special revenue fund for costs 
1312.15 	related to issuing permits for groundwater 
1312.16 	thermal exchange devices.
1312.17 	(e) Base Level Adjustment. The general fund 
1312.18 	base is increased by $390,000 in fiscal year 
1312.19 	2026 and increased by $185,000 in fiscal year 
1312.20 	2027. The state government special revenue 
1312.21 	fund base is decreased by $2,791,000 in fiscal 
1312.22 	year 2026 and decreased by $2,860,000 in 
1312.23 	fiscal year 2027.

1312.24	Sec. 4. BOARD OF PHARMACY

1312.25	Appropriations by Fund
	
1312.26	General
	1,500,000
	-0-
	
1312.27
1312.28	State Government 
Special Revenue
	-0-
	27,000
	
1312.29 	(a) Legal Costs. $1,500,000 in fiscal year 
1312.30 	2024 is from the general fund for legal costs. 
1312.31 	This is a onetime appropriation.
1312.32 	(b) Base Level Adjustment. The state 
1312.33 	government special revenue fund base is 
1313.1 	increased by $27,000 in fiscal year 2026 and 
1313.2 	increased by $27,000 in fiscal year 2027.

1313.3
1313.4	Sec. 5. RARE DISEASE ADVISORY 
COUNCIL
 	$
	-0-
	$
	342,000
	
1313.5 	This is a onetime appropriation and is 
1313.6 	available until June 30, 2027.

1313.7
1313.8	Sec. 6. COMMISSIONER OF MANAGEMENT 
AND BUDGET

1313.9	Appropriations by Fund
	
1313.10		2024
	2025
	
1313.11	General
	-0-
	(232,000)
	
1313.12	Health Care Access
	-0-
	100,000
	
1313.13 	(a) Insulin safety net program. $100,000 in 
1313.14 	fiscal year 2025 is from the health care access 
1313.15 	fund for the insulin safety net program in 
1313.16 	Minnesota Statutes, section 151.74.
1313.17 	(b) Transfer. The commissioner must transfer 
1313.18 	from the health care access fund to the insulin 
1313.19 	safety net program account in the special 
1313.20 	revenue fund the amount certified by the 
1313.21 	commissioner of administration under 
1313.22 	Minnesota Statutes, section 151.741, 
1313.23 	subdivision 5, paragraph (b), estimated to be 
1313.24 	$100,000 in fiscal year 2025, for 
1313.25 	reimbursement to manufacturers for insulin 
1313.26 	dispensed under the insulin safety net program 
1313.27 	in Minnesota Statutes, section 151.74. The 
1313.28 	base for this transfer is estimated to be 
1313.29 	$100,000 in fiscal year 2026 and $100,000 in 
1313.30 	fiscal year 2027.
1313.31 	(c) Base Level Adjustment. The health care 
1313.32 	access fund base is increased by $100,000 in 
1313.33 	fiscal year 2026 and increased by $100,000 in 
1313.34 	fiscal year 2027.

1314.1	Sec. 7. BOARD OF DIRECTORS OF MNSURE
 	$
	-0-
	$
	2,330,000
	
1314.2 	(a) Information Technology to Implement 
1314.3 	Federal Deferred Action for Childhood 
1314.4 	Arrivals Regulatory Requirements.
1314.5 	$2,330,000 in fiscal year 2025 is for 
1314.6 	information technology to implement federal 
1314.7 	Deferred Action for Childhood Arrivals 
1314.8 	regulatory requirements. This is a onetime 
1314.9 	appropriation and is available until June 30, 
1314.10 	2027.
1314.11 	(b) Transfer to Enterprise Account. The 
1314.12 	Board of Directors of MNsure must transfer 
1314.13 	$2,330,000 in fiscal year 2025 from the 
1314.14 	general fund to the enterprise account under 
1314.15 	Minnesota Statutes, section 62V.07. This is a 
1314.16 	onetime transfer.

1314.17	Sec. 8. COMMISSIONER OF COMMERCE
 	$
	-0-
	$
	149,000
	
1314.18 	(a) Defrayal of Costs for Mandated 
1314.19 	Coverage of Orthotic and Prosthetic 
1314.20 	Devices. The general fund base is increased 
1314.21 	by $558,000 in fiscal year 2026 and increased 
1314.22 	by $539,000 in fiscal year 2027. The base 
1314.23 	includes $520,000 in fiscal year 2026 and 
1314.24 	$540,000 in fiscal year 2027 for the estimated 
1314.25 	amount of defrayal costs for mandated 
1314.26 	coverage of orthotic and prosthetic devices 
1314.27 	and $38,000 in fiscal year 2026 and $19,000 
1314.28 	in fiscal year 2027 for administrative costs to 
1314.29 	implement mandated coverage of orthotic and 
1314.30 	prosthetic devices.
1314.31 	(b) Defrayal of Costs for Mandated 
1314.32 	Coverage of Abortions and 
1314.33 	Abortion-Related Services. The general fund 
1314.34 	base is increased by $338,000 in fiscal year 
1315.1 	2026 and increased by $319,000 in fiscal year 
1315.2 	2027. The base includes $300,000 in fiscal 
1315.3 	year 2026 and $300,000 in fiscal year 2027 
1315.4 	for the estimated amount of defrayal costs for 
1315.5 	mandated coverage of abortions and 
1315.6 	abortion-related services and $38,000 in fiscal 
1315.7 	year 2026 and $19,000 in fiscal year 2027 for 
1315.8 	administrative costs to implement mandated 
1315.9 	coverage of abortions and abortion-related 
1315.10 	services.
1315.11 	(c) Defrayal Costs for Mandated Coverage 
1315.12 	of Rapid Whole Genome Sequencing. The 
1315.13 	general fund base is increased by $838,000 in 
1315.14 	fiscal year 2026 and increased by $819,000 in 
1315.15 	fiscal year 2027. The base includes $800,000 
1315.16 	in fiscal year 2026 and $800,000 in fiscal year 
1315.17 	2027 for the estimated amount of defrayal 
1315.18 	costs for rapid whole genome sequencing and 
1315.19 	$38,000 in fiscal year 2026 and $19,000 in 
1315.20 	fiscal year 2027 for administrative costs to 
1315.21 	implement mandated coverage of rapid whole 
1315.22 	genome sequencing.
1315.23 	(d) Oversight of Nonprofit Health Coverage 
1315.24 	Entity Conversion Transactions. $149,000 
1315.25 	in fiscal year 2025 is for oversight of nonprofit 
1315.26 	health coverage entity conversion transactions 
1315.27 	under Minnesota Statutes, sections 145D.30 
1315.28 	to 145D.37. The base for this appropriation is 
1315.29 	$149,000 in fiscal year 2026 and $0 in fiscal 
1315.30 	year 2027.
1315.31 	(e) Base Level Adjustment. The general fund 
1315.32 	base is increased by $149,000 in fiscal year 
1315.33 	2026 and increased by $0 in fiscal year 2027.

1315.34	Sec. 9. ATTORNEY GENERAL
 	$
	-0-
	$
	53,000
	
1316.1 	(a) Nonprofit Health Coverage Entity 
1316.2 	Conversion Transactions. $53,000 in fiscal 
1316.3 	year 2025 is for review and related 
1316.4 	investigatory and enforcement actions for 
1316.5 	conversion transactions under Minnesota 
1316.6 	Statutes, sections 145D.30 to 145D.37.
1316.7 	(b) Base Level Adjustment. The general fund 
1316.8 	base is increased by $53,000 in fiscal year 
1316.9 	2026 and increased by $53,000 in fiscal year 
1316.10 	2027.

1316.11 	Sec. 10. Laws 2023, chapter 22, section 4, subdivision 2, is amended to read:
1316.12 		Subd. 2.Grants to navigators.
 1316.13 	(a) $1,936,000 in fiscal year 2024 is 
1316.14 	appropriated from the health care access fund 
1316.15 	to the commissioner of human services for 
1316.16 	grants to organizations with a MNsure grant 
1316.17 	services navigator assister contract in good 
1316.18 	standing as of the date of enactment. The grant 
1316.19 	payment to each organization must be in 
1316.20 	proportion to the number of medical assistance 
1316.21 	and MinnesotaCare enrollees each 
1316.22 	organization assisted that resulted in a 
1316.23 	successful enrollment in the second quarter of 
1316.24 	fiscal years 2020 and 2023, as determined by 
1316.25 	MNsure's navigator payment process. This is 
1316.26 	a onetime appropriation and is available until 
1316.27 	June 30, 2025.
1316.28 	(b) $3,000,000 in fiscal year 2024 is 
1316.29 	appropriated from the health care access fund 
1316.30 	to the commissioner of human services for 
1316.31 	grants to organizations with a MNsure grant 
1316.32 	services navigator assister contract for 
1316.33 	successful enrollments in medical assistance 
1316.34 	and MinnesotaCare. This is a onetime 
1317.1 	appropriation and is available until June 30, 
1317.2 	2025.

1317.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

1317.4 	Sec. 11. Laws 2023, chapter 57, article 1, section 6, is amended to read:
1317.5 	Sec. 6. PREMIUM SECURITY ACCOUNT TRANSFER; OUT.
 1317.6 	$275,775,000 $284,605,000 in fiscal year 2026 is transferred from the premium security 
1317.7 	plan account under Minnesota Statutes, section 62E.25, subdivision 1, to the general fund. 
1317.8 	This is a onetime transfer.

1317.9 	Sec. 12. Laws 2023, chapter 70, article 20, section 2, subdivision 5, is amended to read:

1317.10	Subd. 5.Central Office; Health Care

1317.11	Appropriations by Fund
	
1317.12	General
	35,807,000
	31,349,000
	
1317.13	Health Care Access
	30,668,000
	50,168,000
	
1317.14 	(a) Medical assistance and MinnesotaCare 
1317.15 	accessibility improvements. $4,000,000 in 
1317.16 	fiscal year 2024 is from the general fund for 
1317.17 	interactive voice response upgrades and 
1317.18 	translation services for medical assistance and 
1317.19 	MinnesotaCare enrollees with limited English 
1317.20 	proficiency. This appropriation is available 
1317.21 	until June 30, 2025.
1317.22 	(b) Transforming service delivery. $155,000 
1317.23 	in fiscal year 2024 and $180,000 in fiscal year 
1317.24 	2025 are from the general fund for 
1317.25 	transforming service delivery projects.
1317.26 	(c) Improving the Minnesota eligibility 
1317.27 	technology system functionality. $1,604,000 
1317.28 	in fiscal year 2024 and $711,000 in fiscal year 
1317.29 	2025 are from the general fund for improving 
1317.30 	the Minnesota eligibility technology system 
1317.31 	functionality. The base for this appropriation 
1318.1 	is $1,421,000 in fiscal year 2026 and $0 in 
1318.2 	fiscal year 2027.
1318.3 	(d) Actuarial and economic analyses.
1318.4 	$2,500,000 is from the health care access fund 
1318.5 	for actuarial and economic analyses and to 
1318.6 	prepare and submit a state innovation waiver 
1318.7 	under section 1332 of the federal Affordable 
1318.8 	Care Act for a Minnesota public option health 
1318.9 	care plan. This is a onetime appropriation and 
1318.10 	is available until June 30, 2025.
1318.11 	(e) Contingent appropriation for Minnesota 
1318.12 	public option health care plan.$22,000,000
1318.13 	$21,000,000 in fiscal year 2025 is from the 
1318.14 	health care access fund to implement a 
1318.15 	Minnesota public option health care plan. This 
1318.16 	is a onetime appropriation and is available 
1318.17 	upon approval of a state innovation waiver 
1318.18 	under section 1332 of the federal Affordable 
1318.19 	Care Act. This appropriation is available until 
1318.20 	June 30, 2027.
1318.21 	(f) Carryforward authority. Notwithstanding 
1318.22 	Minnesota Statutes, section 16A.28, 
1318.23 	subdivision 3, $2,367,000 of the appropriation 
1318.24 	in fiscal year 2024 is available until June 30, 
1318.25 	2027.
1318.26 	(g) Base level adjustment. The general fund 
1318.27 	base is $32,315,000 in fiscal year 2026 and 
1318.28 	$27,536,000 in fiscal year 2027. The health 
1318.29 	care access fund base is $28,168,000 in fiscal 
1318.30 	year 2026 and $28,168,000 in fiscal year 2027.

1318.31 	EFFECTIVE DATE. This section is effective the day following final enactment.

1319.1 	Sec. 13. Laws 2023, chapter 70, article 20, section 2, subdivision 31, as amended by Laws 
1319.2 	2023, chapter 75, section 12, is amended to read:

1319.3
1319.4	Subd. 31.Direct Care and Treatment - Mental 
Health and Substance Abuse
 		-0-
		6,109,000
	
1319.5 	(a) Keeping Nurses at the Bedside Act; 
1319.6 	contingent appropriation. The appropriation 
1319.7 	in this subdivision is contingent upon 
1319.8 	legislative enactment by the 93rd Legislature 
1319.9 	of provisions substantially similar to 2023 S.F. 
1319.10 	No. 1561, the second engrossment, article 2.
1319.11 	(b)Base level adjustment. The general fund 
1319.12 	base is increased by $7,566,000 in fiscal year 
1319.13 	2026 and increased by $7,566,000 in fiscal 
1319.14 	year 2027.

1319.15 	Sec. 14. Laws 2023, chapter 70, article 20, section 3, subdivision 2, is amended to read:

1319.16	Subd. 2.Health Improvement

1319.17	Appropriations by Fund
	
1319.18	General
	229,600,000
	210,030,000
	
1319.19
1319.20	State Government 
Special Revenue
	12,392,000
	12,682,000
	
1319.21	Health Care Access
	49,051,000
	53,290,000
	
1319.22	Federal TANF
	11,713,000
	11,713,000
	
1319.23 	(a) Studies of telehealth expansion and 
1319.24 	payment parity. $1,200,000 in fiscal year 
1319.25 	2024 is from the general fund for studies of 
1319.26 	telehealth expansion and payment parity. This 
1319.27 	is a onetime appropriation and is available 
1319.28 	until June 30, 2025.
1319.29 	(b) Advancing equity through capacity 
1319.30 	building and resource allocation grant 
1319.31 	program. $916,000 in fiscal year 2024 and 
1319.32 	$916,000 in fiscal year 2025 are from the 
1319.33 	general fund for grants under Minnesota 
1320.1 	Statutes, section 144.9821. This is a onetime 
1320.2 	appropriation.
1320.3 	(c) Grant to Minnesota Community Health 
1320.4 	Worker Alliance. $971,000 in fiscal year 
1320.5 	2024 and $971,000 in fiscal year 2025 are 
1320.6 	from the general fund for Minnesota Statutes, 
1320.7 	section 144.1462.
1320.8 	(d) Community solutions for healthy child 
1320.9 	development grants. $2,730,000 in fiscal year 
1320.10 	2024 and $2,730,000 in fiscal year 2025 are 
1320.11 	from the general fund for grants under 
1320.12 	Minnesota Statutes, section 145.9257. The 
1320.13 	base for this appropriation is $2,415,000 in 
1320.14 	fiscal year 2026 and $2,415,000 in fiscal year 
1320.15 	2027.
1320.16 	(e) Comprehensive Overdose and Morbidity 
1320.17 	Prevention Act. $9,794,000 in fiscal year 
1320.18 	2024 and $10,458,000 in fiscal year 2025 are 
1320.19 	from the general fund for comprehensive 
1320.20 	overdose and morbidity prevention strategies 
1320.21 	under Minnesota Statutes, section 144.0528. 
1320.22 	The base for this appropriation is $10,476,000 
1320.23 	in fiscal year 2026 and $10,476,000 in fiscal 
1320.24 	year 2027.
1320.25 	(f) Emergency preparedness and response.
1320.26 	$10,486,000 in fiscal year 2024 and 
1320.27 	$14,314,000 in fiscal year 2025 are from the 
1320.28 	general fund for public health emergency 
1320.29 	preparedness and response, the sustainability 
1320.30 	of the strategic stockpile, and COVID-19 
1320.31 	pandemic response transition. The base for 
1320.32 	this appropriation is $11,438,000 in fiscal year 
1320.33 	2026 and $11,362,000 in fiscal year 2027.
1321.1 	(g) Healthy Beginnings, Healthy Families.
1321.2 	(1) $8,440,000 in fiscal year 2024 and 
1321.3 	$7,305,000 in fiscal year 2025 are from the 
1321.4 	general fund for grants under Minnesota 
1321.5 	Statutes, sections 145.9571 to 145.9576. The 
1321.6 	base for this appropriation is $1,500,000 in 
1321.7 	fiscal year 2026 and $1,500,000 in fiscal year 
1321.8 	2027. (2) Of the amount in clause (1), 
1321.9 	$400,000 in fiscal year 2024 is to support the 
1321.10 	transition from implementation of activities 
1321.11 	under Minnesota Statutes, section 145.4235, 
1321.12 	to implementation of activities under 
1321.13 	Minnesota Statutes, sections 145.9571 to 
1321.14 	145.9576. The commissioner shall award four 
1321.15 	sole-source grants of $100,000 each to Face 
1321.16 	to Face, Cradle of Hope, Division of Indian 
1321.17 	Work, and Minnesota Prison Doula Project. 
1321.18 	The amount in this clause is a onetime 
1321.19 	appropriation.
1321.20 	(h) Help Me Connect. $463,000 in fiscal year 
1321.21 	2024 and $921,000 in fiscal year 2025 are 
1321.22 	from the general fund for the Help Me 
1321.23 	Connect program under Minnesota Statutes, 
1321.24 	section 145.988.
1321.25 	(i) Home visiting. $2,000,000 in fiscal year 
1321.26 	2024 and $2,000,000 in fiscal year 2025 are 
1321.27 	from the general fund for home visiting under 
1321.28 	Minnesota Statutes, section 145.87, to provide 
1321.29 	home visiting to priority populations under 
1321.30 	Minnesota Statutes, section 145.87, 
1321.31 	subdivision 1, paragraph (e).
1321.32 	(j) No Surprises Act enforcement.
1321.33 	$1,210,000 in fiscal year 2024 and $1,090,000 
1321.34 	in fiscal year 2025 are from the general fund 
1321.35 	for implementation of the federal No Surprises 
1322.1 	Act under Minnesota Statutes, section 
1322.2 	62Q.021, and an assessment of the feasibility 
1322.3 	of a statewide provider directory. The general 
1322.4 	fund base for this appropriation is $855,000 
1322.5 	in fiscal year 2026 and $855,000 in fiscal year 
1322.6 	2027.
1322.7 	(k) Office of African American Health.
1322.8 	$1,000,000 in fiscal year 2024 and $1,000,000 
1322.9 	in fiscal year 2025 are from the general fund 
1322.10 	for grants under the authority of the Office of 
1322.11 	African American Health under Minnesota 
1322.12 	Statutes, section 144.0756.
1322.13 	(l) Office of American Indian Health.
1322.14 	$1,000,000 in fiscal year 2024 and $1,000,000 
1322.15 	in fiscal year 2025 are from the general fund 
1322.16 	for grants under the authority of the Office of 
1322.17 	American Indian Health under Minnesota 
1322.18 	Statutes, section 144.0757.
1322.19 	(m) Public health system transformation 
1322.20 	grants. (1) $9,844,000 in fiscal year 2024 and 
1322.21 	$9,844,000 in fiscal year 2025 are from the 
1322.22 	general fund for grants under Minnesota 
1322.23 	Statutes, section 145A.131, subdivision 1, 
1322.24 	paragraph (f).
1322.25 	(2) $535,000 in fiscal year 2024 and $535,000 
1322.26 	in fiscal year 2025 are from the general fund 
1322.27 	for grants under Minnesota Statutes, section 
1322.28 	145A.14, subdivision 2b.
1322.29 	(3) $321,000 in fiscal year 2024 and $321,000 
1322.30 	in fiscal year 2025 are from the general fund 
1322.31 	for grants under Minnesota Statutes, section 
1322.32 	144.0759.
1322.33 	(n) Health care workforce. (1) $1,010,000 
1322.34 	in fiscal year 2024 and $2,550,000 in fiscal 
1323.1 	year 2025 are from the health care access fund 
1323.2 	for rural training tracks and rural clinicals 
1323.3 	grants under Minnesota Statutes, sections 
1323.4 	144.1505 and 144.1507. The base for this 
1323.5 	appropriation is $4,060,000 in fiscal year 2026 
1323.6 	and $3,600,000 in fiscal year 2027.
1323.7 	(2) $420,000 in fiscal year 2024 and $420,000 
1323.8 	in fiscal year 2025 are from the health care 
1323.9 	access fund for immigrant international 
1323.10 	medical graduate training grants under 
1323.11 	Minnesota Statutes, section 144.1911.
1323.12 	(3) $5,654,000 in fiscal year 2024 and 
1323.13 	$5,550,000 in fiscal year 2025 are from the 
1323.14 	health care access fund for site-based clinical 
1323.15 	training grants under Minnesota Statutes, 
1323.16 	section 144.1508. The base for this 
1323.17 	appropriation is $4,657,000 in fiscal year 2026 
1323.18 	and $3,451,000 in fiscal year 2027.
1323.19 	(4) $1,000,000 in fiscal year 2024 and 
1323.20 	$1,000,000 in fiscal year 2025 are from the 
1323.21 	health care access fund for mental health for 
1323.22 	health care professional grants. This is a 
1323.23 	onetime appropriation and is available until 
1323.24 	June 30, 2027.
1323.25 	(5) $502,000 in fiscal year 2024 and $502,000 
1323.26 	in fiscal year 2025 are from the health care 
1323.27 	access fund for workforce research and data 
1323.28 	analysis of shortages, maldistribution of health 
1323.29 	care providers in Minnesota, and the factors 
1323.30 	that influence decisions of health care 
1323.31 	providers to practice in rural areas of 
1323.32 	Minnesota.
1323.33 	(o) School health. $800,000 in fiscal year 
1323.34 	2024 and $1,300,000 in fiscal year 2025 are 
1324.1 	from the general fund for grants under 
1324.2 	Minnesota Statutes, section 145.903. The base 
1324.3 	for this appropriation is $2,300,000 in fiscal 
1324.4 	year 2026 and $2,300,000 in fiscal year 2027.
1324.5 	(p) Long COVID. $3,146,000 in fiscal year 
1324.6 	2024 and $3,146,000 in fiscal year 2025 are 
1324.7 	from the general fund for grants and to 
1324.8 	implement Minnesota Statutes, section 
1324.9 	145.361.
1324.10 	(q) Workplace safety grants. $4,400,000 in 
1324.11 	fiscal year 2024 is from the general fund for 
1324.12 	grants to health care entities to improve 
1324.13 	employee safety or security. This is a onetime 
1324.14 	appropriation and is available until June 30, 
1324.15 	2027. The commissioner may use up to ten 
1324.16 	percent of this appropriation for 
1324.17 	administration.
1324.18 	(r) Clinical dental education innovation 
1324.19 	grants. $1,122,000 in fiscal year 2024 and 
1324.20 	$1,122,000 in fiscal year 2025 are from the 
1324.21 	general fund for clinical dental education 
1324.22 	innovation grants under Minnesota Statutes, 
1324.23 	section 144.1913.
1324.24 	(s) Emmett Louis Till Victims Recovery 
1324.25 	Program. $500,000 in fiscal year 2024 is from 
1324.26 	the general fund for a grant to the Emmett 
1324.27 	Louis Till Victims Recovery Program. The 
1324.28 	commissioner must not use any of this 
1324.29 	appropriation for administration. This is a 
1324.30 	onetime appropriation and is available until 
1324.31 	June 30, 2025.
1324.32 	(t) Center for health care affordability.
1324.33 	$2,752,000 in fiscal year 2024 and $3,989,000 
1324.34 	in fiscal year 2025 are from the general fund 
1325.1 	to establish a center for health care 
1325.2 	affordability and to implement Minnesota 
1325.3 	Statutes, section 62J.312. The general fund 
1325.4 	base for this appropriation is $3,988,000 in 
1325.5 	fiscal year 2026 and $3,988,000 in fiscal year 
1325.6 	2027.
1325.7 	(u) Federally qualified health centers 
1325.8 	apprenticeship program. $690,000 in fiscal 
1325.9 	year 2024 and $690,000 in fiscal year 2025 
1325.10 	are from the general fund for grants under 
1325.11 	Minnesota Statutes, section 145.9272.
1325.12 	(v) Alzheimer's public information 
1325.13 	program. $80,000 in fiscal year 2024 and 
1325.14 	$80,000 in fiscal year 2025 are from the 
1325.15 	general fund for grants to community-based 
1325.16 	organizations to co-create culturally specific 
1325.17 	messages to targeted communities and to 
1325.18 	promote public awareness materials online 
1325.19 	through diverse media channels.
1325.20 	(w) Keeping Nurses at the Bedside Act; 
1325.21 	contingent appropriation Nurse and Patient 
1325.22 	Safety Act.The appropriations in this 
1325.23 	paragraph are contingent upon legislative 
1325.24 	enactment of 2023 Senate File 1384 by the 
1325.25 	93rd Legislature. The appropriations in this 
1325.26 	paragraph are available until June 30, 2027.
1325.27 	(1) $5,317,000 in fiscal year 2024 and 
1325.28 	$5,317,000 in fiscal year 2025 are from the 
1325.29 	general fund for loan forgiveness under 
1325.30 	Minnesota Statutes, section 144.1501, for 
1325.31 	eligible nurses who have agreed to work as 
1325.32 	hospital nurses in accordance with Minnesota 
1325.33 	Statutes, section 144.1501, subdivision 2, 
1325.34 	paragraph (a), clause (7).
1326.1 	(2) $66,000 in fiscal year 2024 and $66,000 
1326.2 	in fiscal year 2025 are from the general fund 
1326.3 	for loan forgiveness under Minnesota Statutes, 
1326.4 	section 144.1501, for eligible nurses who have 
1326.5 	agreed to teach in accordance with Minnesota 
1326.6 	Statutes, section 144.1501, subdivision 2, 
1326.7 	paragraph (a), clause (3).
1326.8 	(3) $545,000 in fiscal year 2024 and $879,000 
1326.9 	in fiscal year 2025 are from the general fund 
1326.10 	to administer Minnesota Statutes, section 
1326.11 	144.7057; to perform the evaluation duties 
1326.12 	described in Minnesota Statutes, section 
1326.13 	144.7058; to continue prevention of violence 
1326.14 	in health care program activities; to analyze 
1326.15 	potential links between adverse events and 
1326.16 	understaffing; to convene stakeholder groups 
1326.17 	and create a best practices toolkit; and for a 
1326.18 	report on the current status of the state's 
1326.19 	nursing workforce employed by hospitals. The 
1326.20 	base for this appropriation is $624,000 in fiscal 
1326.21 	year 2026 and $454,000 in fiscal year 2027.
1326.22 	(x) Supporting healthy development of 
1326.23 	babies. $260,000 in fiscal year 2024 and 
1326.24 	$260,000 in fiscal year 2025 are from the 
1326.25 	general fund for a grant to the Amherst H. 
1326.26 	Wilder Foundation for the African American 
1326.27 	Babies Coalition initiative. The base for this 
1326.28 	appropriation is $520,000 in fiscal year 2026 
1326.29 	and $0 in fiscal year 2027. Any appropriation 
1326.30 	in fiscal year 2026 is available until June 30, 
1326.31 	2027. This paragraph expires on June 30, 
1326.32 	2027.
1326.33 	(y) Health professional education loan 
1326.34 	forgiveness. $2,780,000 in fiscal year 2024 
1326.35 	is from the general fund for eligible mental 
1327.1 	health professional loan forgiveness under 
1327.2 	Minnesota Statutes, section 144.1501. This is 
1327.3 	a onetime appropriation. The commissioner 
1327.4 	may use up to ten percent of this appropriation 
1327.5 	for administration.
1327.6 	(z) Primary care residency expansion grant 
1327.7 	program. $400,000 in fiscal year 2024 and 
1327.8 	$400,000 in fiscal year 2025 are from the 
1327.9 	general fund for a psychiatry resident under 
1327.10 	Minnesota Statutes, section 144.1506.
1327.11 	(aa) Pediatric primary care mental health 
1327.12 	training grant program. $1,000,000 in fiscal 
1327.13 	year 2024 and $1,000,000 in fiscal year 2025 
1327.14 	are from the general fund for grants under 
1327.15 	Minnesota Statutes, section 144.1509. The 
1327.16 	commissioner may use up to ten percent of 
1327.17 	this appropriation for administration.
1327.18 	(bb) Mental health cultural community 
1327.19 	continuing education grant program. 
1327.20 	$500,000 in fiscal year 2024 and $500,000 in 
1327.21 	fiscal year 2025 are from the general fund for 
1327.22 	grants under Minnesota Statutes, section 
1327.23 	144.1511. The commissioner may use up to 
1327.24 	ten percent of this appropriation for 
1327.25 	administration.
1327.26 	(cc) Labor trafficking services grant 
1327.27 	program. $500,000 in fiscal year 2024 and 
1327.28 	$500,000 in fiscal year 2025 are from the 
1327.29 	general fund for grants under Minnesota 
1327.30 	Statutes, section 144.3885.
1327.31 	(dd) Palliative Care Advisory Council. 
1327.32 	$40,000 $44,000 in fiscal year 2024 and 
1327.33 	$40,000 $44,000 in fiscal year 2025 are from 
1328.1 	the general fund for grants under Minnesota 
1328.2 	Statutes, section 144.059.
1328.3 	(ee) Analysis of a universal health care 
1328.4 	financing system. $1,815,000 in fiscal year 
1328.5 	2024 and $580,000 in fiscal year 2025 are 
1328.6 	from the general fund to the commissioner to 
1328.7 	contract for an analysis of the benefits and 
1328.8 	costs of a legislative proposal for a universal 
1328.9 	health care financing system and a similar 
1328.10 	analysis of the current health care financing 
1328.11 	system. The base for this appropriation is 
1328.12 	$580,000 in fiscal year 2026 and $0 in fiscal 
1328.13 	year 2027. This appropriation is available until 
1328.14 	June 30, 2027.
1328.15 	(ff) Charitable assets public interest review.
1328.16 	(1) The appropriations under this paragraph 
1328.17 	are contingent upon legislative enactment of 
1328.18 	2023 House File 402 by the 93rd Legislature.
1328.19 	(2) $1,584,000 in fiscal year 2024 and 
1328.20 	$769,000 in fiscal year 2025 are from the 
1328.21 	general fund to review certain health care 
1328.22 	entity transactions; to conduct analyses of the 
1328.23 	impacts of health care transactions on health 
1328.24 	care cost, quality, and competition; and to 
1328.25 	issue public reports on health care transactions 
1328.26 	in Minnesota and their impacts. The base for 
1328.27 	this appropriation is $710,000 in fiscal year 
1328.28 	2026 and $710,000 in fiscal year 2027.
1328.29 	(gg) Study of the development of a statewide 
1328.30 	registry for provider orders for 
1328.31 	life-sustaining treatment.$365,000 $225,000
1328.32 	in fiscal year 2024 and $365,000 in fiscal year 
1328.33 	2025 are is from the general fund for a study 
1328.34 	of the development of a statewide registry for 
1329.1 	provider orders for life-sustaining treatment. 
1329.2 	This is a onetime appropriation.
1329.3 	(hh) Task Force on Pregnancy Health and 
1329.4 	Substance Use Disorders. $199,000 in fiscal 
1329.5 	year 2024 and $100,000 in fiscal year 2025 
1329.6 	are from the general fund for the Task Force 
1329.7 	on Pregnancy Health and Substance Use 
1329.8 	Disorders. This is a onetime appropriation and 
1329.9 	is available until June 30, 2025.
1329.10 	(ii) 988 Suicide and crisis lifeline. $4,000,000 
1329.11 	in fiscal year 2024 is from the general fund 
1329.12 	for 988 national suicide prevention lifeline 
1329.13 	grants under Minnesota Statutes, section 
1329.14 	145.561. This is a onetime appropriation.
1329.15 	(jj) Equitable Health Care Task Force.
1329.16 	$779,000 in fiscal year 2024 and $749,000 in 
1329.17 	fiscal year 2025 are from the general fund for 
1329.18 	the Equitable Health Care Task Force. This is 
1329.19 	a onetime appropriation.
1329.20 	(kk) Psychedelic Medicine Task Force.
1329.21 	$338,000 in fiscal year 2024 and $171,000 in 
1329.22 	fiscal year 2025 are from the general fund for 
1329.23 	the Psychedelic Medicine Task Force. This is 
1329.24 	a onetime appropriation.
1329.25 	(ll) Medical education and research costs.
1329.26 	$300,000 in fiscal year 2024 and $300,000 in 
1329.27 	fiscal year 2025 are from the general fund for 
1329.28 	the medical education and research costs 
1329.29 	program under Minnesota Statutes, section 
1329.30 	62J.692.
1329.31 	(mm) Special Guerilla Unit Veterans grant 
1329.32 	program. $250,000 in fiscal year 2024 and 
1329.33 	$250,000 in fiscal year 2025 are from the 
1329.34 	general fund for a grant to the Special 
1330.1 	Guerrilla Units Veterans and Families of the 
1330.2 	United States of America to offer 
1330.3 	programming and culturally specific and 
1330.4 	specialized assistance to support the health 
1330.5 	and well-being of Special Guerilla Unit 
1330.6 	Veterans. The base for this appropriation is 
1330.7 	$500,000 in fiscal year 2026 and $0 in fiscal 
1330.8 	year 2027. Any amount appropriated in fiscal 
1330.9 	year 2026 is available until June 30, 2027. 
1330.10 	This paragraph expires June 30, 2027.
1330.11 	(nn) Safe harbor regional navigator. 
1330.12 	$300,000 in fiscal year 2024 and $300,000 in 
1330.13 	fiscal year 2025 are for a regional navigator 
1330.14 	in northwestern Minnesota. The commissioner 
1330.15 	may use up to ten percent of this appropriation 
1330.16 	for administration.
1330.17 	(oo) Network adequacy. $798,000 in fiscal 
1330.18 	year 2024 and $491,000 in fiscal year 2025 
1330.19 	are from the general fund for reviews of 
1330.20 	provider networks under Minnesota Statutes, 
1330.21 	section 62K.10, to determine network 
1330.22 	adequacy.
1330.23 	(pp) Grant to Minnesota Alliance for 
1330.24 	Volunteer Advancement. $278,000 in fiscal 
1330.25 	year 2024 is from the general fund for a grant 
1330.26 	to the Minnesota Alliance for Volunteer 
1330.27 	Advancement to administer needs-based 
1330.28 	volunteerism subgrants targeting 
1330.29 	underresourced nonprofit organizations in 
1330.30 	greater Minnesota. Subgrants must be used to 
1330.31 	support the ongoing efforts of selected 
1330.32 	organizations to address and minimize 
1330.33 	disparities in access to human services through 
1330.34 	increased volunteerism. Subgrant applicants 
1330.35 	must demonstrate that the populations to be 
1331.1 	served by the subgrantee are underserved or 
1331.2 	suffer from or are at risk of homelessness, 
1331.3 	hunger, poverty, lack of access to health care, 
1331.4 	or deficits in education. The Minnesota 
1331.5 	Alliance for Volunteer Advancement must 
1331.6 	give priority to organizations that are serving 
1331.7 	the needs of vulnerable populations. This is a 
1331.8 	onetime appropriation and is available until 
1331.9 	June 30, 2025.
1331.10 	(pp) (qq)(1) TANF Appropriations. TANF 
1331.11 	funds must be used as follows:
1331.12 	(i) $3,579,000 in fiscal year 2024 and 
1331.13 	$3,579,000 in fiscal year 2025 are from the 
1331.14 	TANF fund for home visiting and nutritional 
1331.15 	services listed under Minnesota Statutes, 
1331.16 	section 145.882, subdivision 7, clauses (6) and 
1331.17 	(7). Funds must be distributed to community 
1331.18 	health boards according to Minnesota Statutes, 
1331.19 	section 145A.131, subdivision 1;
1331.20 	(ii) $2,000,000 in fiscal year 2024 and 
1331.21 	$2,000,000 in fiscal year 2025 are from the 
1331.22 	TANF fund for decreasing racial and ethnic 
1331.23 	disparities in infant mortality rates under 
1331.24 	Minnesota Statutes, section 145.928, 
1331.25 	subdivision 7;
1331.26 	(iii) $4,978,000 in fiscal year 2024 and 
1331.27 	$4,978,000 in fiscal year 2025 are from the 
1331.28 	TANF fund for the family home visiting grant 
1331.29 	program under Minnesota Statutes, section 
1331.30 	145A.17. $4,000,000 of the funding in fiscal 
1331.31 	year 2024 and $4,000,000 in fiscal year 2025 
1331.32 	must be distributed to community health 
1331.33 	boards under Minnesota Statutes, section 
1331.34 	145A.131, subdivision 1. $978,000 of the 
1331.35 	funding in fiscal year 2024 and $978,000 in 
1332.1 	fiscal year 2025 must be distributed to Tribal 
1332.2 	governments under Minnesota Statutes, section 
1332.3 	145A.14, subdivision 2a;
1332.4 	(iv) $1,156,000 in fiscal year 2024 and 
1332.5 	$1,156,000 in fiscal year 2025 are from the 
1332.6 	TANF fund for sexual and reproductive health 
1332.7 	services grants under Minnesota Statutes, 
1332.8 	section 145.925; and
1332.9 	(v) the commissioner may use up to 6.23 
1332.10 	percent of the funds appropriated from the 
1332.11 	TANF fund each fiscal year to conduct the 
1332.12 	ongoing evaluations required under Minnesota 
1332.13 	Statutes, section 145A.17, subdivision 7, and 
1332.14 	training and technical assistance as required 
1332.15 	under Minnesota Statutes, section 145A.17, 
1332.16 	subdivisions 4 and 5.
1332.17 	(2) TANF Carryforward. Any unexpended 
1332.18 	balance of the TANF appropriation in the first 
1332.19 	year does not cancel but is available in the 
1332.20 	second year.
1332.21 	(qq) (rr)Base level adjustments. The general 
1332.22 	fund base is $197,644,000 in fiscal year 2026 
1332.23 	and $195,714,000 in fiscal year 2027. The 
1332.24 	health care access fund base is $53,354,000 
1332.25 	in fiscal year 2026 and $50,962,000 in fiscal 
1332.26 	year 2027.

1332.27 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
1332.28 	paragraph (pp) is effective retroactively from July 1, 2023.

1332.29 	Sec. 15. Laws 2023, chapter 70, article 20, section 12, as amended by Laws 2023, chapter 
1332.30 	75, section 13, is amended to read:

1332.31
1332.32	Sec. 12. COMMISSIONER OF 
MANAGEMENT AND BUDGET
 	$
	12,932,000
	$
	3,412,000
	
1333.1 	(a) Outcomes and evaluation consultation. 
1333.2 	$450,000 in fiscal year 2024 and $450,000 in 
1333.3 	fiscal year 2025 are for outcomes and 
1333.4 	evaluation consultation requirements.
1333.5 	(b) Department of Children, Youth, and 
1333.6 	Families. $11,931,000 in fiscal year 2024 and 
1333.7 	$2,066,000 in fiscal year 2025 are to establish 
1333.8 	the Department of Children, Youth, and 
1333.9 	Families. This is a onetime appropriation.
1333.10 	(c) Keeping Nurses at the Bedside Act 
1333.11 	impact evaluation; contingent 
1333.12 	appropriation. $232,000 in fiscal year 2025 
1333.13 	is for the Keeping Nurses at the Bedside Act 
1333.14 	impact evaluation. This appropriation is 
1333.15 	contingent upon legislative enactment by the 
1333.16 	93rd Legislature of a provision substantially 
1333.17 	similar to the impact evaluation provision in 
1333.18 	2023 S.F. No. 2995, the third engrossment, 
1333.19 	article 3, section 22. This is a onetime 
1333.20 	appropriation and is available until June 30, 
1333.21 	2029.
1333.22 	(d) (c)Health care subcabinet. $551,000 in 
1333.23 	fiscal year 2024 and $664,000 in fiscal year 
1333.24 	2025 are to hire an executive director for the 
1333.25 	health care subcabinet and to provide staffing 
1333.26 	and administrative support for the health care 
1333.27 	subcabinet.
1333.28 	(e) (d)Base level adjustment. The general 
1333.29 	fund base is $1,114,000 in fiscal year 2026 
1333.30 	and $1,114,000 in fiscal year 2027.

1333.31 	Sec. 16. APPROPRIATIONS GIVEN EFFECT ONCE.
 1333.32 	If an appropriation or transfer in this article is enacted more than once during the 2024 
1333.33 	regular session, the appropriation or transfer must be given effect once.

1334.1 	Sec. 17. EXPIRATION OF UNCODIFIED LANGUAGE.
 1334.2 	All uncodified language contained in this article expires on June 30, 2025, unless a 
1334.3 	different expiration date is explicit.

1334.4 	ARTICLE 68
1334.5 	INDIVIDUAL INCOME TAXES

1334.6 	Section 1. Minnesota Statutes 2022, section 289A.08, subdivision 1, is amended to read:
1334.7 		Subdivision 1.Generally; individuals. (a) A taxpayer must file a return for each taxable 
1334.8 	year the taxpayer is required to file a return under section 6012 of the Internal Revenue 
1334.9 	Code or meets the requirements under paragraph (d) to file a return, except that:
1334.10 	(1) an individual who is not a Minnesota resident for any part of the year is not required 
1334.11 	to file a Minnesota income tax return if the individual's gross income derived from Minnesota 
1334.12 	sources as determined under sections 290.081, paragraph (a), and 290.17, is less than the 
1334.13 	filing requirements for a single individual who is a full year resident of Minnesota;
1334.14 	(2) an individual who is a Minnesota resident is not required to file a Minnesota income 
1334.15 	tax return if the individual's gross income derived from Minnesota sources as determined 
1334.16 	under section 290.17, less the subtractions allowed under section 290.0132, subdivisions 
1334.17 	12 and 15, is less than the filing requirements for a single individual who is a full-year 
1334.18 	resident of Minnesota.
1334.19 	(b) The decedent's final income tax return, and other income tax returns for prior years 
1334.20 	where the decedent had gross income in excess of the minimum amount at which an 
1334.21 	individual is required to file and did not file, must be filed by the decedent's personal 
1334.22 	representative, if any. If there is no personal representative, the return or returns must be 
1334.23 	filed by the transferees, as defined in section 270C.58, subdivision 3, who receive property 
1334.24 	of the decedent.
1334.25 	(c) The term "gross income," as it is used in this section, has the same meaning given it 
1334.26 	in section 290.01, subdivision 20.
1334.27 	(d) The commissioner of revenue must annually determine the gross income levels at 
1334.28 	which individuals are required to file a return for each taxable year based on the amounts 
1334.29 	allowed as a deduction under section 290.0123.
1334.30 	(e) Notwithstanding paragraph (a), an individual must file a Minnesota income tax return 
1334.31 	for each taxable year that the taxpayer has made an election to receive advance payments 
1334.32 	of the child tax credit under section 290.0661, subdivision 8.

1335.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
1335.2 	31, 2024.

1335.3 	Sec. 2. Minnesota Statutes 2023 Supplement, section 290.0661, subdivision 4, is amended 
1335.4 	to read:
1335.5 		Subd. 4.Phaseout. The credits under this section subdivision 2 and section 290.0671
1335.6 	are phased down jointly. The combined amount of the credits is reduced by 12 percent of 
1335.7 	earned income or adjusted gross income, whichever is greater, in excess of the phaseout 
1335.8 	threshold. The phaseout threshold equals:
1335.9 	(1) $35,000 for a married taxpayer filing a joint return; or
1335.10 	(2) $29,500 for all other filers.

1335.11 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
1335.12 	31, 2024.

1335.13 	Sec. 3. Minnesota Statutes 2023 Supplement, section 290.0661, subdivision 8, is amended 
1335.14 	to read:
1335.15 		Subd. 8.Advance payment of credits. (a) The commissioner of revenue may must
1335.16 	establish a process to allow taxpayers to elect to receive one or more advance payments of 
1335.17 	the credit under this section. The amount of advance payments must be based on the taxpayer 
1335.18 	and commissioner's estimate of the amount of credits for which the taxpayer would be 
1335.19 	eligible in the taxable year beginning in the calendar year in which the payments were made. 
1335.20 	The commissioner must not distribute advance payments to a taxpayer who does not elect 
1335.21 	to receive advance payments.
1335.22 	(b) The amount of a taxpayer's credit under this section for the taxable year is reduced 
1335.23 	by the amount of advance payments received by the taxpayer in the calendar year during 
1335.24 	which the taxable year began. If a taxpayer's advance payments exceeded the credit the 
1335.25 	taxpayer was eligible to receive for the taxable year, the taxpayer's liability for tax is increased 
1335.26 	by the difference between the amount of advance payments received and the credit amount.

1335.27 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
1335.28 	31, 2024.

1336.1 	Sec. 4. Minnesota Statutes 2023 Supplement, section 290.0661, is amended by adding a 
1336.2 	subdivision to read:
1336.3 		Subd. 9.Minimum credit. (a) An eligible taxpayer is allowed the greater of the credit 
1336.4 	allowed under subdivision 2 or the minimum credit described in this subdivision. A taxpayer 
1336.5 	is eligible for the minimum credit under this subdivision if:
1336.6 	(1) the taxpayer received an advance payment of the credit under subdivision 8; and
1336.7 	(2) the combined amount of the taxpayer's credits under subdivision 2 and section 
1336.8 	290.0671, after the phaseout in subdivision 4, is greater than $0.
1336.9 	(b) The credit allowed under this subdivision is equal to 50 percent of the credit received 
1336.10 	under subdivision 2 in the prior taxable year, unless paragraph (c) applies.
1336.11 	(c) If a taxpayer is claiming fewer qualifying children in the current taxable year than 
1336.12 	in the prior taxable year, the minimum credit allowed under this subdivision is equal to 50 
1336.13 	percent of credit received under this section in the prior taxable year multiplied by a fraction 
1336.14 	in which:
1336.15 	(1) the numerator is the number of qualifying children in the current taxable year; and
1336.16 	(2) the denominator is the number of qualifying children in the prior taxable year.

1336.17 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
1336.18 	31, 2024.

1336.19 	ARTICLE 69
1336.20 	MINERALS TAXES

1336.21 	Section 1. Minnesota Statutes 2022, section 123B.53, subdivision 1, is amended to read:
1336.22 		Subdivision 1.Definitions. (a) For purposes of this section, the eligible debt service 
1336.23 	revenue of a district is defined as follows:
1336.24 	(1) the amount needed to produce between five and six percent in excess of the amount 
1336.25 	needed to meet when due the principal and interest payments on the obligations of the district 
1336.26 	for eligible projects according to subdivision 2, excluding the amounts listed in paragraph 
1336.27 	(b), minus
1336.28 	(2) the amount of debt service excess levy reduction for that school year calculated 
1336.29 	according to the procedure established by the commissioner.
1336.30 	(b) The obligations in this paragraph are excluded from eligible debt service revenue:
1337.1 	(1) obligations under section 123B.61;
1337.2 	(2) the part of debt service principal and interest paid from the taconite environmental 
1337.3 	protection fund or Douglas J. Johnson economic protection trust, excluding the portion of 
1337.4 	taconite payments from the Iron Range school consolidation and cooperatively operated 
1337.5 	school schools and community development account under section 298.28, subdivision 7a;
1337.6 	(3) obligations for long-term facilities maintenance under section 123B.595;
1337.7 	(4) obligations under section 123B.62; and
1337.8 	(5) obligations equalized under section 123B.535.
1337.9 	(c) For purposes of this section, if a preexisting school district reorganized under sections 
1337.10 	123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement of the 
1337.11 	preexisting district's bonded indebtedness or capital loans, debt service equalization aid 
1337.12 	must be computed separately for each of the preexisting districts.
1337.13 	(d) For purposes of this section, the adjusted net tax capacity determined according to 
1337.14 	sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property 
1337.15 	generally exempted from ad valorem taxes under section 272.02, subdivision 64.

1337.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

1337.17 	Sec. 2. Minnesota Statutes 2022, section 273.135, subdivision 2, is amended to read:
1337.18 		Subd. 2.Reduction amount. The amount of the reduction authorized by subdivision 1 
1337.19 	shall be:
1337.20 	(a) In the case of property located within a municipality as defined under section 273.134, 
1337.21 	paragraph (a), 66 percent of the tax, provided that the reduction shall not exceed the 
1337.22 	maximum amounts specified in paragraph (c).
1337.23 	(b) In the case of property located within the boundaries of a school district which 
1337.24 	qualifies as a tax relief area under section 273.134, paragraph (b), but which is outside the 
1337.25 	boundaries of a municipality which meets the qualifications prescribed in section 273.134, 
1337.26 	paragraph (a), 57 percent of the tax, provided that the reduction shall not exceed the 
1337.27 	maximum amounts specified in paragraph (c).
1337.28 	(c) The maximum reduction of the tax is $315.10 $515 on property described in paragraph 
1337.29 	(a) and $289.80 on property described in paragraph (b).

1337.30 	EFFECTIVE DATE. This section is effective beginning with property taxes payable 
1337.31 	in 2025.

1338.1 	Sec. 3. Minnesota Statutes 2022, section 275.065, is amended by adding a subdivision to 
1338.2 	read:
1338.3 		Subd. 3c.Notice of proposed taxes; property subject to chapter 276A. In the case of 
1338.4 	property subject to the areawide tax under section 276A.06, subdivision 7, for both the 
1338.5 	current year taxes and the proposed tax amounts, the net tax capacity portion of the taxes 
1338.6 	shown for each taxing jurisdiction must be based on the property's total net tax capacity 
1338.7 	multiplied by the jurisdiction's actual or proposed net tax capacity tax rate. In addition to 
1338.8 	the tax amounts shown for each jurisdiction, the statement must include a line showing the 
1338.9 	"fiscal disparities adjustment" equal to the total gross tax payable minus the sum of the tax 
1338.10 	amounts shown for the individual taxing jurisdictions. The fiscal disparities adjustment may 
1338.11 	be a negative number. If the fiscal disparities adjustment for either the current year taxes 
1338.12 	or the proposed tax amount is a negative number, the percentage change must not be shown. 
1338.13 	In all other respects the statement must fulfill the requirements of subdivision 3.

1338.14 	EFFECTIVE DATE. This section is effective beginning with proposed notices for 
1338.15 	property taxes payable in 2025.

1338.16 	Sec. 4. Minnesota Statutes 2022, section 276.04, is amended by adding a subdivision to 
1338.17 	read:
1338.18 		Subd. 2a.Contents of tax statements; property subject to chapter 276A. In the case 
1338.19 	of property subject to the areawide tax under section 276A.06, subdivision 7, for both the 
1338.20 	current year taxes and the previous year tax amounts, the net tax capacity portion of the tax 
1338.21 	shown for each taxing jurisdiction must be based on the property's total net tax capacity 
1338.22 	multiplied by the jurisdiction's net tax capacity tax rate. In addition to the tax amounts shown 
1338.23 	for each jurisdiction, the statement must include a line showing the "fiscal disparities 
1338.24 	adjustment" equal to the total gross tax payable minus the sum of the tax amounts shown 
1338.25 	for the individual taxing jurisdictions for each year. The fiscal disparities adjustment may 
1338.26 	be a negative number. In all other respects the statement must fulfill the requirements of 
1338.27 	subdivision 2.

1338.28 	EFFECTIVE DATE. This section is effective beginning with proposed notices for 
1338.29 	property taxes payable in 2025.

1338.30 	Sec. 5. Minnesota Statutes 2022, section 276A.01, subdivision 17, is amended to read:
1338.31 		Subd. 17.School fund allocation. (a) "School fund allocation" means an amount up to 
1338.32 	25 percent of the areawide levy certified by the commissioner of Iron Range resources and 
1338.33 	rehabilitation, after consultation with the Iron Range Resources and Rehabilitation Board, 
1339.1 	to be used for the purposes of the Iron Range school consolidation and cooperatively operated 
1339.2 	school schools and community development account under section 298.28, subdivision 7a.
1339.3 	(b) The allocation under paragraph (a) shall only be made after the commissioner of 
1339.4 	Iron Range resources and rehabilitation, after consultation with the Iron Range Resources 
1339.5 	and Rehabilitation Board, has certified by June 30 that the Iron Range school consolidation 
1339.6 	and cooperatively operated schools and community development account has insufficient 
1339.7 	funds to make payments as authorized under section 298.28, subdivision 7a.

1339.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

1339.9 	Sec. 6. Minnesota Statutes 2022, section 276A.06, subdivision 8, is amended to read:
1339.10 		Subd. 8.Certification of values; payment. The administrative auditor shall determine 
1339.11 	for each county the difference between the total levy on distribution value pursuant to 
1339.12 	subdivision 3, clause (1), including the school fund allocation within the county and the 
1339.13 	total tax on contribution value pursuant to subdivision 7, within the county. On or before 
1339.14 	May 16 of each year, the administrative auditor shall certify the differences so determined 
1339.15 	and the county's portion of the school fund allocation to each county auditor. In addition, 
1339.16 	the administrative auditor shall certify to those county auditors for whose county the total 
1339.17 	tax on contribution value exceeds the total levy on distribution value the settlement the 
1339.18 	county is to make to the other counties of the excess of the total tax on contribution value 
1339.19 	over the total levy on distribution value in the county. On or before June 15 and November 
1339.20 	15 of each year, each county treasurer in a county having a total tax on contribution value 
1339.21 	in excess of the total levy on distribution value shall pay one-half of the excess to the other 
1339.22 	counties in accordance with the administrative auditor's certification. On or before June 15 
1339.23 	and November 15 of each year, each county treasurer shall pay to the administrative auditor 
1339.24 	that county's share of the school fund allocation. On or before December 1 of each year, 
1339.25 	the administrative auditor shall pay the school fund allocation to the commissioner of Iron 
1339.26 	Range resources and rehabilitation for deposit in the Iron Range school consolidation and 
1339.27 	cooperatively operated schools and community development account.

1339.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

1339.29 	Sec. 7. Minnesota Statutes 2023 Supplement, section 298.018, subdivision 1, is amended 
1339.30 	to read:
1339.31 		Subdivision 1.Within taconite assistance area. (a) The proceeds of the tax paid under 
1339.32 	sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the 
1339.33 	taconite assistance area defined in section 273.1341, shall be allocated as follows:
1340.1 	(1) except as provided under paragraph (b), five percent to the city or town within which 
1340.2 	the minerals or energy resources are mined or extracted, or within which the concentrate 
1340.3 	was produced. If the mining and concentration, or different steps in either process, are 
1340.4 	carried on in more than one taxing district, the commissioner shall apportion equitably the 
1340.5 	proceeds among the cities and towns by attributing 50 percent of the proceeds of the tax to 
1340.6 	the operation of mining or extraction, and the remainder to the concentrating plant and to 
1340.7 	the processes of concentration, and with respect to each thereof giving due consideration 
1340.8 	to the relative extent of the respective operations performed in each taxing district;
1340.9 	(2) ten percent to the taconite municipal aid account to be distributed as provided in 
1340.10 	section 298.282, subdivisions 1 and 2, on the dates provided under this section;
1340.11 	(3) ten percent to the school district within which the minerals or energy resources are 
1340.12 	mined or extracted, or within which the concentrate was produced. If the mining and 
1340.13 	concentration, or different steps in either process, are carried on in more than one school 
1340.14 	district, distribution among the school districts must be based on the apportionment formula 
1340.15 	prescribed in clause (1);
1340.16 	(4) 20 percent to a group of school districts comprised of those school districts wherein 
1340.17 	the mineral or energy resource was mined or extracted or in which there is a qualifying 
1340.18 	municipality as defined by section 273.134, paragraph (b), in direct proportion to school 
1340.19 	district indexes as follows: for each school district, its pupil units determined under section 
1340.20 	126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted 
1340.21 	net tax capacity per pupil unit for school districts receiving aid under this clause as calculated 
1340.22 	pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution 
1340.23 	to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that 
1340.24 	portion of the distribution which its index bears to the sum of the indices for all school 
1340.25 	districts that receive the distributions;
1340.26 	(5) ten percent to the county within which the minerals or energy resources are mined 
1340.27 	or extracted, or within which the concentrate was produced. If the mining and concentration, 
1340.28 	or different steps in either process, are carried on in more than one county, distribution 
1340.29 	among the counties must be based on the apportionment formula prescribed in clause (1), 
1340.30 	provided that any county receiving distributions under this clause shall pay one percent of 
1340.31 	its proceeds to the Range Association of Municipalities and Schools;
1340.32 	(6) five percent to St. Louis County acting as the counties' fiscal agent to be distributed 
1340.33 	as provided in sections 273.134 to 273.136;
1341.1 	(7) 20 percent to the commissioner of Iron Range resources and rehabilitation for the 
1341.2 	purposes of section 298.22;
1341.3 	(8) three percent to the Douglas J. Johnson economic protection trust fund;
1341.4 	(9) seven percent to the taconite environmental protection fund; and
1341.5 	(10) ten percent to the commissioner of Iron Range resources and rehabilitation for 
1341.6 	capital improvements to Giants Ridge Recreation Area.
1341.7 	(b) If the materials or energy resources are mined, extracted, or concentrated in School 
1341.8 	District No. 2711, Mesabi East, then the amount under paragraph (a), clause (1), must instead 
1341.9 	be distributed pursuant to this paragraph. The cities of Aurora, Babbitt, Ely, and Hoyt Lakes 
1341.10 	must each receive 20 percent of the amount. The city of Biwabik and Embarrass Township 
1341.11 	must each receive ten percent of the amount.
1341.12 	(c) For the first five years that tax paid under section 298.015, subdivisions 1 and 2, is 
1341.13 	distributed under this subdivision, ten percent of the total proceeds distributed in each year 
1341.14 	must first be distributed pursuant to this paragraph. The remaining 90 percent of the total 
1341.15 	proceeds distributed in each of those years must be distributed as outlined in paragraph (a). 
1341.16 	Of the amount available under this paragraph, the cities of Aurora, Babbitt, Ely, and Hoyt 
1341.17 	Lakes must each receive 20 percent. Of the amount available under this paragraph, the city 
1341.18 	of Biwabik and Embarrass Township must each receive ten percent. This paragraph applies 
1341.19 	only to tax paid by a person engaged in the business of mining within the area described in 
1341.20 	section 273.1341, clauses (1) and (2).

1341.21 	EFFECTIVE DATE. This section is effective beginning with the 2025 distribution.

1341.22 	Sec. 8. Minnesota Statutes 2022, section 298.17, is amended to read:
1341.23 	298.17 OCCUPATION TAXES TO BE APPORTIONED.
1341.24 	(a) All occupation taxes paid by persons, copartnerships, companies, joint stock 
1341.25 	companies, corporations, and associations, however or for whatever purpose organized, 
1341.26 	engaged in the business of mining or producing iron ore or other ores, when collected shall 
1341.27 	be apportioned and distributed in accordance with the Constitution of the state of Minnesota, 
1341.28 	article X, section 3, in the manner following: 90 percent shall be deposited in the state 
1341.29 	treasury and credited to the general fund of which four-ninths shall be used for the support 
1341.30 	of elementary and secondary schools; and ten percent of the proceeds of the tax imposed 
1341.31 	by this section shall be deposited in the state treasury and credited to the general fund for 
1341.32 	the general support of the university.
1342.1 	(b) Of the money apportioned to the general fund by this section: (1) there is annually 
1342.2 	appropriated and credited to the mining environmental and regulatory account in the special 
1342.3 	revenue fund an amount equal to that which would have been generated by a 2-1/2 cent tax 
1342.4 	imposed by section 298.24 on each taxable ton produced in the preceding calendar year. 
1342.5 	Money in the mining environmental and regulatory account is appropriated annually to the 
1342.6 	commissioner of natural resources to fund agency staff to work on environmental issues 
1342.7 	and provide regulatory services for ferrous and nonferrous mining operations in this state. 
1342.8 	Payment to the mining environmental and regulatory account shall be made by July 1 
1342.9 	annually. The commissioner of natural resources shall execute an interagency agreement 
1342.10 	with the Pollution Control Agency to assist with the provision of environmental regulatory 
1342.11 	services such as monitoring and permitting required for ferrous and nonferrous mining 
1342.12 	operations; (2) there is annually appropriated and credited to the Iron Range resources and 
1342.13 	rehabilitation account in the special revenue fund an amount equal to that which would have 
1342.14 	been generated by a 1.5 cent tax imposed by section 298.24 on each taxable ton produced 
1342.15 	in the preceding calendar year, to be expended for the purposes of section 298.22; and (3) 
1342.16 	there is annually appropriated and credited to the Iron Range resources and rehabilitation 
1342.17 	account in the special revenue fund for transfer to the Iron Range school consolidation and 
1342.18 	cooperatively operated school schools and community development account under section 
1342.19 	298.28, subdivision 7a, an amount equal to that which would have been generated by a six 
1342.20 	cent tax imposed by section 298.24 on each taxable ton produced in the preceding calendar 
1342.21 	year. Payment to the Iron Range resources and rehabilitation account shall be made by May 
1342.22 	15 annually.
1342.23 	(c) The money appropriated pursuant to paragraph (b), clause (2), shall be used (i) to 
1342.24 	provide environmental development grants to local governments located within any county 
1342.25 	in region 3 as defined in governor's executive order number 60, issued on June 12, 1970, 
1342.26 	which does not contain a municipality qualifying pursuant to section 273.134, paragraph 
1342.27 	(b), or (ii) to provide economic development loans or grants to businesses located within 
1342.28 	any such county, provided that the county board or an advisory group appointed by the 
1342.29 	county board to provide recommendations on economic development shall make 
1342.30 	recommendations to the commissioner of Iron Range resources and rehabilitation regarding 
1342.31 	the loans. Payment to the Iron Range resources and rehabilitation account shall be made by 
1342.32 	May 15 annually.
1342.33 	(d) Of the money allocated to Koochiching County, one-third must be paid to the 
1342.34 	Koochiching County Economic Development Commission.

1342.35 	EFFECTIVE DATE. This section is effective the day following final enactment.

1343.1 	Sec. 9. Minnesota Statutes 2022, section 298.2215, subdivision 1, is amended to read:
1343.2 		Subdivision 1.Establishment. A county may establish a scholarship fund from any 
1343.3 	unencumbered revenue received pursuant to section 93.22, 298.018, 298.28, 298.39, 298.396, 
1343.4 	or 298.405 or any law imposing a tax upon severed mineral values. Scholarships must be 
1343.5 	used at a two-year Minnesota State Colleges and Universities institution, or an accredited 
1343.6 	skilled trades program, within the county. The county shall establish procedures for applying 
1343.7 	for and distributing the scholarships.

1343.8 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2017.

1343.9 	Sec. 10. Minnesota Statutes 2023 Supplement, section 298.28, subdivision 7a, is amended 
1343.10 	to read:
1343.11 		Subd. 7a.Iron Range school consolidation and cooperatively operated school schools 
1343.12 	and community development account. (a) The following amounts must be allocated to 
1343.13 	the commissioner of Iron Range resources and rehabilitation to be deposited in the Iron 
1343.14 	Range school consolidation and cooperatively operated school schools and community 
1343.15 	development account that is hereby created:
1343.16 	(1) (i) for distributions beginning in 2015 in 2024 through 2032, ten 24 cents per taxable 
1343.17 	ton of the tax imposed under section 298.24, (ii) for distributions beginning in 2033, ten 
1343.18 	cents per taxable ton of the tax imposed under section 298.24;
1343.19 	(2) the amount as determined under section 298.17, paragraph (b), clause (3); and
1343.20 	(3) any other amount as provided by law.
1343.21 	(b) Expenditures from this account may be approved as ongoing annual expenditures 
1343.22 	and shall be made only to provide disbursements to assist school districts with the payment 
1343.23 	of bonds that were issued for qualified school projects, or for any other school disbursement 
1343.24 	as approved by the commissioner of Iron Range resources and rehabilitation after consultation 
1343.25 	with the Iron Range Resources and Rehabilitation Board. For purposes of this section, 
1343.26 	"qualified school projects" means school projects within the taconite assistance area as 
1343.27 	defined in section 273.1341, that were (1) approved, by referendum, after April 3, 2006; 
1343.28 	and (2) approved by the commissioner of education pursuant to section 123B.71.
1343.29 	(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for 
1343.30 	bonds issued under section 123A.482, subdivision 9, must be increased each year to offset 
1343.31 	any reduction in debt service equalization aid that the school district qualifies for in that 
1343.32 	year, under section 123B.53, subdivision 6, compared with the amount the school district 
1343.33 	qualified for in fiscal year 2018.
1344.1 	(d) No expenditure under this section shall be made unless approved by the commissioner 
1344.2 	of Iron Range resources and rehabilitation after consultation with the Iron Range Resources 
1344.3 	and Rehabilitation Board.

1344.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

1344.5 	Sec. 11. Minnesota Statutes 2022, section 298.28, subdivision 8, is amended to read:
1344.6 		Subd. 8.Range Association of Municipalities and Schools. .30 0.50 cent per taxable 
1344.7 	ton shall be paid to the Range Association of Municipalities and Schools, for the purpose 
1344.8 	of providing an areawide approach to problems which demand coordinated and cooperative 
1344.9 	actions and which are common to those areas of northeast Minnesota affected by operations 
1344.10 	involved in mining iron ore and taconite and producing concentrate therefrom, and for the 
1344.11 	purpose of promoting the general welfare and economic development of the cities, towns, 
1344.12 	and school districts within the Iron Range area of northeast Minnesota.

1344.13 	EFFECTIVE DATE. This section is effective beginning with the 2024 distribution.

1344.14 	Sec. 12. Minnesota Statutes 2023 Supplement, section 298.28, subdivision 16, is amended 
1344.15 	to read:
1344.16 		Subd. 16.Transfer. Of the amount annually distributed to the Douglas J. Johnson 
1344.17 	Economic Protection Trust Fund under this section, $3,500,000 shall be transferred to the 
1344.18 	Iron Range school consolidation and cooperatively operated schoolschools and community 
1344.19 	development account under subdivision 7a. Any remaining amount of the amount annually 
1344.20 	distributed to the Douglas J. Johnson Economic Protection Trust Fund shall be transferred 
1344.21 	to the Iron Range resources and rehabilitation account under subdivision 7. The transfers 
1344.22 	under this subdivision must be made within ten days of the August payment.

1344.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

1344.24 	Sec. 13. Minnesota Statutes 2022, section 298.282, subdivision 1, is amended to read:
1344.25 		Subdivision 1.Distribution of taconite municipal aid account. (a) The amount 
1344.26 	deposited with the county as provided in section 298.28, subdivision 3, must be distributed 
1344.27 	as provided by this section among: (1) the municipalities located within a taconite assistance 
1344.28 	area under section 273.1341 that meet the criteria of section 273.1341, clause (1) or (2); (2) 
1344.29 	a township that contains a state park consisting primarily of an underground iron ore mine; 
1344.30 	(3) a city located within five miles of that state park; and (4) Breitung Township in St. Louis 
1344.31 	County, each being referred to in this section as a qualifying municipality. The distribution 
1344.32 	to Breitung Township under this subdivision shall be $15,000 $25,000 annually.
1345.1 	(b) The amount deposited in the state general fund as provided in section 298.018, 
1345.2 	subdivision 1, must be distributed in the same manner as provided under paragraph (a), 
1345.3 	except that subdivisions 3, 4, and 5 do not apply, and the distributions shall be made on the 
1345.4 	dates provided under section 298.018, subdivision 1a.

1345.5 	EFFECTIVE DATE. This section is effective beginning with the 2024 distribution.

1345.6 	Sec. 14. Minnesota Statutes 2022, section 298.292, subdivision 2, is amended to read:
1345.7 		Subd. 2.Use of money. (a) Money in the Douglas J. Johnson economic protection trust 
1345.8 	fund may be used for the following purposes:
1345.9 	(1) to provide loans, loan guarantees, interest buy-downs and other forms of participation 
1345.10 	with private sources of financing, but a loan to a private enterprise shall be for a principal 
1345.11 	amount not to exceed one-half of the cost of the project for which financing is sought, and 
1345.12 	the rate of interest on a loan to a private enterprise shall be no less than the lesser of eight 
1345.13 	percent or an interest rate three percentage points less than a full faith and credit obligation 
1345.14 	of the United States government of comparable maturity, at the time that the loan is approved;
1345.15 	(2) to fund reserve accounts established to secure the payment when due of the principal 
1345.16 	of and interest on bonds issued pursuant to section 298.2211, including bonds authorized 
1345.17 	by the legislature to be repaid from the distributions under section 298.28, subdivision 7a;
1345.18 	(3) to pay in periodic payments or in a lump-sum payment any or all of the interest on 
1345.19 	bonds issued pursuant to chapter 474 for the purpose of constructing, converting, or 
1345.20 	retrofitting heating facilities in connection with district heating systems or systems utilizing 
1345.21 	alternative energy sources;
1345.22 	(4) to invest in a venture capital fund or enterprise that will provide capital to other 
1345.23 	entities that are engaging in, or that will engage in, projects or programs that have the 
1345.24 	purposes set forth in subdivision 1. No investments may be made in a venture capital fund 
1345.25 	or enterprise unless at least two other unrelated investors make investments of at least 
1345.26 	$500,000 in the venture capital fund or enterprise, and the investment by the Douglas J. 
1345.27 	Johnson economic protection trust fund may not exceed the amount of the largest investment 
1345.28 	by an unrelated investor in the venture capital fund or enterprise. For purposes of this 
1345.29 	subdivision, an "unrelated investor" is a person or entity that is not related to the entity in 
1345.30 	which the investment is made or to any individual who owns more than 40 percent of the 
1345.31 	value of the entity, in any of the following relationships: spouse, parent, child, sibling, 
1345.32 	employee, or owner of an interest in the entity that exceeds ten percent of the value of all 
1345.33 	interests in it. For purposes of determining the limitations under this clause, the amount of 
1346.1 	investments made by an investor other than the Douglas J. Johnson economic protection 
1346.2 	trust fund is the sum of all investments made in the venture capital fund or enterprise during 
1346.3 	the period beginning one year before the date of the investment by the Douglas J. Johnson 
1346.4 	economic protection trust fund; and
1346.5 	(5) to purchase forest land in the taconite assistance area defined in section 273.1341 to 
1346.6 	be held and managed as a public trust for the benefit of the area for the purposes authorized 
1346.7 	in section 298.22, subdivision 5a. Property purchased under this section may be sold by the 
1346.8 	commissioner, after consultation with the advisory board. The net proceeds must be deposited 
1346.9 	in the trust fund for the purposes and uses of this section.
1346.10 	(b) Money from the trust fund shall be expended only in or for the benefit of the taconite 
1346.11 	assistance area defined in section 273.1341.
1346.12 	(c) Money devoted to the trust fund under this section shall not be expended, appropriated, 
1346.13 	or transferred from the trust fund for any purpose except as provided in this section.

1346.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

1346.15 	Sec. 15. IRON RANGE RESOURCES AND REHABILITATION COMMISSIONER; 
1346.16 	BONDS AUTHORIZED IN 2024.
 1346.17 		Subdivision 1.Issuance; purpose. (a) Notwithstanding any provision of Minnesota 
1346.18 	Statutes, chapter 298, to the contrary, the commissioner of Iron Range resources and 
1346.19 	rehabilitation shall, by March 31, 2025, issue revenue bonds in one or more series in a 
1346.20 	principal amount of up to $49,000,000 plus an amount sufficient to pay costs of issuance 
1346.21 	and fund a debt service reserve fund for the bonds if determined by the commissioner to be 
1346.22 	necessary, and thereafter may issue bonds to refund those bonds. The proceeds of the bonds 
1346.23 	must be used to pay the costs of issuance, fund a debt service reserve fund if determined 
1346.24 	by the commissioner to be necessary, and make distributions pursuant to this section. The 
1346.25 	commissioner may establish a debt service reserve fund from funds available under Minnesota 
1346.26 	Statutes, section 298.291 to 298.297, or from the proceeds of the bonds. The commissioner 
1346.27 	of Iron Range resources and rehabilitation must distribute these transferred funds as outlined 
1346.28 	in this section. In order to receive a distribution, a recipient must submit to the commissioner 
1346.29 	a plan of how the distribution will be spent and the commissioner must ensure that the plan 
1346.30 	matches the intended use outlined in this section. The plan must be submitted in a form and 
1346.31 	manner determined by the commissioner. The uses listed are not subject to review or 
1346.32 	recommendation by the Iron Range Resources and Rehabilitation Board. For all distributions 
1346.33 	equal to or greater than $1,000,000, a recipient must appear and present and provide a copy 
1346.34 	of the plan to the Iron Range Resources and Rehabilitation Board. By December 31, 2025, 
1347.1 	each recipient must report to the commissioner how the distribution received under this 
1347.2 	section was spent. If a recipient's plan is submitted and approved, the commissioner must 
1347.3 	distribute the funds for the uses outlined in subdivision 3. The bonds issued under this 
1347.4 	section do not constitute public debt as that term is defined in article XI, section 4 of the 
1347.5 	Minnesota Constitution, and as such are not subject to its provisions.
1347.6 	(b) The bonds issued under this section are debt obligations and the commissioner of 
1347.7 	Iron Range resources and rehabilitation is a district for purposes of Minnesota Statutes, 
1347.8 	section 126C.55, except that payments made under Minnesota Statutes, section 126C.55, 
1347.9 	subdivision 2, are not subject to Minnesota Statutes, section 126C.55, subdivisions 4 to 7.
1347.10 	(c) If the commissioner of Iron Range resources and rehabilitation determines that 
1347.11 	available funds, other than through the issuance of bonds pursuant to subdivision 1, shall 
1347.12 	be used to make grants as provided in subdivision 3, the requirements of subdivision 1, 
1347.13 	relating to the submission of a plan and report to the commissioner of Iron Range resources 
1347.14 	and rehabilitation and the Iron Range Resources and Rehabilitation Board, and subdivision 
1347.15 	3, relating to the grant amount and identified purpose, shall apply.
1347.16 	(d) Funds under this section are available for 30 months from the date the bonds are 
1347.17 	issued. Any unexpended funds after that date cancel to the Iron Range resources and 
1347.18 	rehabilitation account under Minnesota Statutes, section 298.28, subdivision 7, and must 
1347.19 	be used by the commissioner of Iron Range resources and rehabilitation for publicly owned 
1347.20 	capital investments located within the taconite tax relief area as defined in Minnesota 
1347.21 	Statutes, section 273.134.
1347.22 		Subd. 2.Appropriation. (a) Notwithstanding Minnesota Statutes, section 298.28, 
1347.23 	subdivision 7a, paragraph (b), there is annually appropriated from the allocation of the  
1347.24 	revenues under Minnesota Statutes, section 298.28, subdivision 7a, from the taconite 
1347.25 	assistance area prior to the calculation of any amount remaining, an amount sufficient to 
1347.26 	pay when due the principal and interest on the bonds issued pursuant to subdivision 1. 
1347.27 	Notwithstanding the foregoing and Minnesota Statutes, section 298.28, subdivisions 7a to 
1347.28 	11, to the extent bonds authorized by subdivision 1 are paid from taconite production tax 
1347.29 	revenues, any outstanding bonds payable from distributions of taconite production tax 
1347.30 	revenues shall be paid pro rata based on debt service when due.
1347.31 	(b) If in any year the amount available under paragraph (a) is insufficient to pay principal 
1347.32 	and interest due on the bonds in that year, an additional amount is appropriated from the 
1347.33 	Douglas J. Johnson economic protection trust fund to make up the deficiency.
1348.1 	(c) The appropriation under this subdivision terminates upon payment or maturity of 
1348.2 	the last of the bonds issued under this section.
1348.3 		Subd. 3.Grants. (a) The commissioner of Iron Range resources and rehabilitation must 
1348.4 	distribute funds available for distribution under subdivision 1 for the following uses:
1348.5 	(1) $160,000 to the Grand Portage Band of Lake Superior Chippewa to construct a 
1348.6 	playground;
1348.7 	(2) $3,600,000 to the Mesabi Fit Coalition for the renovation, reconstruction, and 
1348.8 	expansion of the former Mesabi Family YMCA in the city of Mountain Iron;
1348.9 	(3) $950,000 to the Buyck Volunteer Fire Department for design, engineering, and 
1348.10 	construction of a new fire and training hall and related equipment;
1348.11 	(4) $750,000 to the Voyageur Trail Society for a joint maintenance facility with Voyageur 
1348.12 	Country ATV in the city of Orr;
1348.13 	(5) $2,250,000 to Cook County, of which $250,000 must be spent to preserve affordable 
1348.14 	housing units for seniors in the city of Grand Marais and $2,000,000 must be used to 
1348.15 	construct, furnish, and equip a solid waste transfer station in the county;
1348.16 	(6) $1,000,000 to the Northland Learning Center for construction costs;
1348.17 	(7) $2,720,000 to the city of Chisholm, of which $1,520,000 must be used for the 
1348.18 	renovation of the Chisholm Ice Arena facility and parking and the remaining amount must 
1348.19 	be used for the public works facility;
1348.20 	(8) $1,000,000 to the city of Gilbert for the Gilbert Community Center;
1348.21 	(9) $360,000 to the city of Biwabik for housing infrastructure;
1348.22 	(10) $3,000,000 to the city of Tower for water management infrastructure projects;
1348.23 	(11) $3,000,000 to the city of Silver Bay to design, engineer, construct, and reconstruct 
1348.24 	publicly owned infrastructure including sewers, water systems, utility extensions, street 
1348.25 	construction, wastewater treatment, stormwater management systems, sidewalks, and 
1348.26 	compliance with the Americans with Disabilities Act;
1348.27 	(12) $2,100,000 to St. Louis County for the development of the Canyon Integrated Solid 
1348.28 	Waste Management Campus;
1348.29 	(13) $3,640,000 to the city of Eveleth to design, engineer, and construct public utilities 
1348.30 	in its business park and construction of the Hat Trick Avenue slip ramp;
1349.1 	(14) $700,000 to the city of Meadowlands for costs related to park improvements and 
1349.2 	a community center;
1349.3 	(15) $600,000 to School District No. 2142, St. Louis County, of which $400,000 must 
1349.4 	be used for septic system upgrades at South Ridge School and $200,000 must be used for 
1349.5 	cafeteria renovations at Northeast Range School in Babbitt and Tower Elementary School 
1349.6 	in Tower;
1349.7 	(16) $250,000 to the city of Two Harbors for band stand repairs and Odegard Park and 
1349.8 	Trail restoration;
1349.9 	(17) $850,000 to the Central Iron Range Sanitary Sewer District for infrastructure 
1349.10 	projects;
1349.11 	(18) $2,420,000 to the Minnesota Discovery Center, of which $200,000 may, at the 
1349.12 	discretion of the director of the Minnesota Discovery Center, be used for operating expenses, 
1349.13 	and $2,220,000 must be used to design, construct, renovate, furnish, and repair facilities, 
1349.14 	including HVAC upgrades, demolition, and compliance with the Americans with Disabilities 
1349.15 	Act, at the Minnesota Discovery Center in the city of Chisholm, and for historical research 
1349.16 	funding;
1349.17 	(19) $5,200,000 to the commissioner of Iron Range resources and rehabilitation for the 
1349.18 	design, engineering, and upgrades or replacement of chair lifts or an irrigation system, and 
1349.19 	for the design, engineering, demolition, and construction of a nordic and welcome center 
1349.20 	at the Giants Ridge Recreation Area;
1349.21 	(20) $250,000 to Independent School District No. 696, Ely, for baseball field renovation;
1349.22 	(21) $500,000 to the city of Mountain Iron for the Outdoor Recreation Center;
1349.23 	(22) $200,000 to Cook County Higher Education Board for costs to bring commercial 
1349.24 	drivers' licenses and trades training to the region along with educational training and academic 
1349.25 	support to remote populations;
1349.26 	(23) $200,000 to Save Our Ship, Inc., for renovation costs;
1349.27 	(24) $3,000,000 to Hibbing Public Utilities for water infrastructure projects;
1349.28 	(25) $400,000 to Veterans On The Lake for demolition of existing structures and the 
1349.29 	building of a triplex that is compliant with the Americans with Disabilities Act;
1349.30 	(26) $350,000 to the city of Eveleth for the Hippodrome renovation;
1349.31 	(27) $225,000 to the Minnesota Forest Zone Trappers Association to plan, engineer, 
1349.32 	purchase land, and develop the Sportsperson Training and Development Center;
1350.1 	(28) $200,000 to the Sturgeon Chain Lake Association to update the engineering and 
1350.2 	hydrology study of the lakes, for regulatory and community outreach, and for preparing 
1350.3 	recommendations to the commissioner of natural resources related to bank stabilization and 
1350.4 	maintenance;
1350.5 	(29) $300,000 to the Northern Lights Music Festival to support programs, of this amount 
1350.6 	$100,000 is available each year in calendar years 2025, 2026, and 2027;
1350.7 	(30) $250,000 to Cherry Township for recreational facilities upgrades and lights;
1350.8 	(31) $350,000 to the East Range Developmental Achievement Center for building 
1350.9 	renovations;
1350.10 	(32) $500,000 to the Department of Iron Range Resources and Rehabilitation for grants 
1350.11 	or loans to (i) businesses or resorts that were economically damaged by floods that occurred 
1350.12 	in 2022 or 2023 and which are eligible under article 5 of the Canadian border counties 
1350.13 	economic relief program, or (ii) outfitters in the border region who experienced either more 
1350.14 	than a 50 percent reduction in Boundary Waters Canoe Area Wilderness permits obtained 
1350.15 	by their customers between 2019 and 2021, or a 50 percent reduction between 2019 and 
1350.16 	2021 in trips across the fee-based mechanical portages into the Boundary Waters Canoe 
1350.17 	Area Wilderness or Quetico Provincial Park. Businesses may be awarded a maximum grant 
1350.18 	under this clause of up to $50,000, must be located within the taconite assistance area, as 
1350.19 	defined under Minnesota Statutes, section 273.1341, and must not have received a grant 
1350.20 	under the Canadian border counties economic relief program;
1350.21 	(33) $100,000 to Crystal Bay Township for a septic project at the Clair Nelson 
1350.22 	Community Center;
1350.23 	(34) $25,000 to the Northwoods Friends of the Arts in the city of Cook for facility 
1350.24 	upgrades and programs;
1350.25 	(35) $50,000 to the Bois Forte Band of Chippewa for food shelf expenses;
1350.26 	(36) $100,000 to the Lake Vermilion Cultural Center to improve and renovate the facility 
1350.27 	and its displays in Tower;
1350.28 	(37) $50,000 to the Lyric Center for the Arts in Virginia for repairs and renovation;
1350.29 	(38) $50,000 to the Pioneer Mine historical site for maintenance and displays in Ely;
1350.30 	(39) $150,000 to the Lake Superior School District to support an emergency preparedness 
1350.31 	career introduction program;
1351.1 	(40) $200,000 to the city of Babbitt for ADA compliance and renovations to the city's 
1351.2 	parks;
1351.3 	(41) $75,000 to the Vermilion Penguins Snowmobile Club and $75,000 to the Cook 
1351.4 	Timberwolves Snowmobile Club, to update maintenance equipment and trail programs;
1351.5 	(42) $3,000,000 to Lone Pine Township to design, engineer, and begin construction for 
1351.6 	its sewage treatment plan in partnership with the city of Nashwauk;
1351.7 	(43) $50,000 to Essentia Health-Virginia Regional Foundation for the development of 
1351.8 	a substance use disorder community education and awareness program;
1351.9 	(44) $3,300,00 to the city of Virginia for a grant to be used by Essentia Health-Virginia 
1351.10 	for:
1351.11 	(i) modernization, renovation, and expansion of the hospital's emergency room complex 
1351.12 	to 12 emergency rooms;
1351.13 	(ii) construction of an emergency behavior health suite for adults and children within 
1351.14 	the hospital; and
1351.15 	(iii) security and safety upgrades to the hospital. The grant must be transferred by the 
1351.16 	city to the hospital within 30 days of receipt; and
1351.17 	(45) $500,000 for grants of $25,000 distributed pursuant to paragraph (b).
1351.18 	(b) Of the amount under paragraph (a), clause (45), grants of $25,000 to be used for trail 
1351.19 	grooming costs or equipment must be made available to the following entities:
1351.20 	(1) Alborn Dirt Devils ATV Club;
1351.21 	(2) Wild Country ATV Club;
1351.22 	(3) Ely Igloo Snowmobile Club;
1351.23 	(4) CC Riders Snowmobile Club;
1351.24 	(5) PathBlazers Snowmobile Club;
1351.25 	(6) Cook Timberwolves Snowmobile Club;
1351.26 	(7) Crane Lake Voyageurs Club;
1351.27 	(8) Pequaywan Area Trail Blazers Snowmobile Club;
1351.28 	(9) Eveleth Trail Hawks Snowmobile Club;
1351.29 	(10) Ranger Snowmobile/ATV Club;
1352.1 	(11) Silver Trail Riders Snowmobile and ATV Club;
1352.2 	(12) Voyageur Snowmobile Club;
1352.3 	(13) Mesabi Sno Voyageurs;
1352.4 	(14) Quad Cities ATV Club;
1352.5 	(15) Prospector ATV Club;
1352.6 	(16) Northern Traxx ATV Club;
1352.7 	(17) Finland Snowmobile and ATV Club;
1352.8 	(18) Babbitt ATV and Snowmobile Club;
1352.9 	(19) Cook County ATV Club; and
1352.10 	(20) Vermilion Penguins Snowmobile Club.
1352.11 	(c) Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, of the money 
1352.12 	distributed under this subdivision, the commissioner of Iron Range resources and 
1352.13 	rehabilitation must not use any amount for administrative uses.

1352.14 	EFFECTIVE DATE. This section is effective the day following final enactment and 
1352.15 	applies beginning with the 2024 distribution under Minnesota Statutes, section 298.28.

1352.16 	Sec. 16. IRON RANGE RESOURCES AND REHABILITATION COMMISSIONER; 
1352.17 	BONDS AUTHORIZED IN 2025.
 1352.18 		Subdivision 1.Issuance; purpose. (a) Notwithstanding any provision of Minnesota 
1352.19 	Statutes, chapter 298, to the contrary, the commissioner of Iron Range resources and 
1352.20 	rehabilitation shall, in 2025, issue revenue bonds in one or more series in a principal amount 
1352.21 	of up to $31,000,000 plus an amount sufficient to pay costs of issuance and fund a debt 
1352.22 	service reserve fund for the bonds if determined by the commissioner to be necessary, and 
1352.23 	thereafter may issue bonds to refund those bonds. The proceeds of the bonds must be used 
1352.24 	to pay the costs of issuance, fund a debt service reserve fund if determined by the 
1352.25 	commissioner to be necessary, and make distributions pursuant to this section. The 
1352.26 	commissioner may establish a debt service reserve fund from funds available under Minnesota 
1352.27 	Statutes, section 298.291 to 298.297, or from the proceeds of the bonds. The commissioner 
1352.28 	of Iron Range resources and rehabilitation must distribute these transferred funds as outlined 
1352.29 	in this section. In order to receive a distribution, a recipient must submit to the commissioner 
1352.30 	a plan of how the distribution will be spent and the commissioner must ensure that the plan 
1352.31 	matches the intended use outlined in this section. The plan must be submitted in a form and 
1353.1 	manner determined by the commissioner. The uses listed are not subject to review or 
1353.2 	recommendation by the Iron Range Resources and Rehabilitation Board. For all distributions 
1353.3 	equal to or greater than $1,000,000, a recipient must appear and present and provide a copy 
1353.4 	of the plan to the Iron Range Resources and Rehabilitation Board. By December 31, 2026, 
1353.5 	each recipient must report to the commissioner how the distribution received under this 
1353.6 	section was spent. If a recipient's plan is submitted and approved, the commissioner must 
1353.7 	distribute the funds for the uses outlined in subdivision 3. The bonds issued under this 
1353.8 	section do not constitute public debt as that term is defined in Article XI, section 4 of the 
1353.9 	Minnesota Constitution, and as such are not subject to its provisions.
1353.10 	(b) The bonds issued under this section are debt obligations and the commissioner of 
1353.11 	Iron Range resources and rehabilitation is a district for purposes of Minnesota Statutes, 
1353.12 	section 126C.55, except that payments made under Minnesota Statutes, section 126C.55, 
1353.13 	subdivision 2, are not subject to Minnesota Statutes, section 126C.55, subdivisions 4 to 7.
1353.14 	(c) If the commissioner of Iron Range resources and rehabilitation determines that 
1353.15 	available funds, other than through the issuance of bonds pursuant to subdivision 1, shall 
1353.16 	be used to make grants as provided in subdivision 3, the requirements of subdivision 1, 
1353.17 	relating to the submission of a plan and report to the commissioner of Iron Range resources 
1353.18 	and rehabilitation and the Iron Range Resources and Rehabilitation Board, and subdivision 
1353.19 	3, relating to the grant amount and identified purpose, shall apply.
1353.20 	(d) Funds under this section are available for 30 months from the date the bonds are 
1353.21 	issued. Any unexpended funds after that date cancel to the Iron Range resources and 
1353.22 	rehabilitation account under Minnesota Statutes, section 298.28, subdivision 7, and must 
1353.23 	be used by the commissioner of Iron Range resources and rehabilitation for publicly owned 
1353.24 	capital investments located within the taconite tax relief area as defined in Minnesota 
1353.25 	Statutes, section 273.134.
1353.26 		Subd. 2.Appropriation. (a) Notwithstanding Minnesota Statutes, section 298.28, 
1353.27 	subdivision 7a, paragraph (b), there is annually appropriated from the allocation of the  
1353.28 	revenues under Minnesota Statutes, section 298.28, subdivision 7a, from the taconite 
1353.29 	assistance area prior to the calculation of any amount remaining, an amount sufficient to 
1353.30 	pay when due the principal and interest on the bonds issued pursuant to subdivision 1. 
1353.31 	Notwithstanding the foregoing and Minnesota Statutes, section 298.28, subdivisions 7a to 
1353.32 	11, to the extent bonds authorized by subdivision 1 are paid from taconite production tax 
1353.33 	revenues, any outstanding bonds payable from distributions of taconite production tax 
1353.34 	revenues shall be paid pro rata based on debt service when due.
1354.1 	(b) If in any year the amount available under paragraph (a) is insufficient to pay principal 
1354.2 	and interest due on the bonds in that year, an additional amount is appropriated from the 
1354.3 	Douglas J. Johnson economic protection trust fund to make up the deficiency.
1354.4 	(c) The appropriation under this subdivision terminates upon payment or maturity of 
1354.5 	the last of the bonds issued under this section.
1354.6 		Subd. 3.Grants. (a) The commissioner of Iron Range resources and rehabilitation must 
1354.7 	distribute funds available for distribution under subdivision 1 for the following uses:
1354.8 	(1) $3,200,000 to the Minnesota Discovery Center, of which $200,000 may, at the 
1354.9 	discretion of the director of the Minnesota Discovery Center, be used for operating expenses 
1354.10 	and $3,000,000 must be used to design, construct, renovate, furnish, and repair facilities, 
1354.11 	including HVAC upgrades, demolition, and compliance with the Americans with Disabilities 
1354.12 	Act, at the Minnesota Discovery Center in the city of Chisholm, and for historical research 
1354.13 	funding;
1354.14 	(2) $7,600,000 to the commissioner of Iron Range resources and rehabilitation for the 
1354.15 	design, engineering, and upgrades or replacement of chair lifts or an irrigation system, and 
1354.16 	for the design, engineering, demolition, and construction of a nordic and welcome center 
1354.17 	at the Giants Ridge Recreation Area;
1354.18 	(3) $350,000 to the Central Iron Range Sanitary Sewer District for infrastructure projects;
1354.19 	(4) $1,000,000 to Independent School District No. 2909, Rock Ridge, for demolition of 
1354.20 	the James Madison Elementary School in Virginia;
1354.21 	(5) $500,000 to the city of Buhl for infrastructure projects;
1354.22 	(6) $500,000 to St. Louis and Lake Counties Regional Railroad Authority to design, 
1354.23 	engineer, acquire right-of-way, and begin construction on the Mesabi Trail Spur from Aurora 
1354.24 	to Hoyt Lakes;
1354.25 	(7) $2,000,000 to the city of Mountain Iron for infrastructure projects including but not 
1354.26 	limited to Enterprise Drive North East infrastructure development, water main and other 
1354.27 	infrastructure in the city, waste water plant improvements to comply with new permits, 
1354.28 	supervisory control and data acquisition on lift stations, and recreation projects;
1354.29 	(8) $3,000,000 to the city of Silver Bay to design, engineer, construct, and reconstruct 
1354.30 	publicly owned infrastructure including sewers, water systems, utility extensions, street 
1354.31 	construction, wastewater treatment, stormwater management systems, sidewalks, and 
1354.32 	compliance with the Americans with Disabilities Act;
1355.1 	(9) $5,000,000 to Independent School District No. 696, Ely, for planning, design, 
1355.2 	engineering, demolition, and construction related to the district's athletic complex;
1355.3 	(10) $1,080,000 to the Northland Learning Center to construct the Alternative Learning 
1355.4 	Center on the campus in the city of Mountain Iron;
1355.5 	(11) $1,000,000 for the city of Biwabik for a public safety facility;
1355.6 	(12) $1,770,000 to Hibbing Public Utilities for water infrastructure projects;
1355.7 	(13) $300,000 to Independent School District No. 701, Hibbing, to be used for long term 
1355.8 	maintenance needs;
1355.9 	(14) $1,150,000 to the city of Hibbing for housing development;
1355.10 	(15) $550,000 to the city of Hibbing to develop the Hull Rust Mine historic site;
1355.11 	(16) $500,000 to St. Louis County for the demolition of the public school in Hoyt Lakes; 
1355.12 	and
1355.13 	(17) $1,500,000 to the city of Babbitt for renovations to the ice arena.
1355.14 	(b) Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, of the money 
1355.15 	distributed under this subdivision, the commissioner of Iron Range resources and 
1355.16 	rehabilitation must not use any amount for administrative uses.

1355.17 	EFFECTIVE DATE. This section is effective the day following final enactment and 
1355.18 	applies beginning with the 2025 distribution under Minnesota Statutes, section 298.28.

1355.19 	Sec. 17. TRANSFER 2024 DISTRIBUTION ONLY; TACONITE ECONOMIC 
1355.20 	DEVELOPMENT FUND.
 1355.21 	Of the funds distributed to the taconite economic development fund under Minnesota 
1355.22 	Statutes, section 298.28, subdivision 9a, for the 2024 distribution only, an amount equal to 
1355.23 	$300,000 shall be transferred from the taconite economic development fund to the city of 
1355.24 	Chisholm for the Senator David Tomassoni Bridge of Peace. The transfer must be made 
1355.25 	within ten days of the August 2024 payment. If less than $300,000 is distributed to the 
1355.26 	taconite economic development fund in 2024, distributions to the fund in future years must 
1355.27 	be transferred to the city of Chisholm, pursuant to this paragraph, until the total amount 
1355.28 	transferred equals $300,000.

1355.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

1356.1 	ARTICLE 70
1356.2 	TAX-FORFEITED PROPERTY

1356.3 	Section 1. [16A.287] TRANSFER; HOUSING SUPPORT.
1356.4 	In fiscal year 2025 and each year thereafter, the commissioner of management and budget 
1356.5 	must transfer $450,000 from the general fund to the housing support account, under section 
1356.6 	462A.43.

1356.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

1356.8 	Sec. 2. Minnesota Statutes 2022, section 279.06, subdivision 1, is amended to read:
1356.9 		Subdivision 1.List and notice. Within five days after the filing of such list, the court 
1356.10 	administrator shall return a copy thereof to the county auditor, with a notice prepared and 
1356.11 	signed by the court administrator, and attached thereto, which may be substantially in the 
1356.12 	following form:

1356.13	State of Minnesota
	)
			
1356.14		) ss.
			
1356.15	County of ........
	)
			
1356.16				District Court
	
1356.17				........ Judicial District.
	
1356.18 	The state of Minnesota, to all persons, companies, or corporations who have or claim 
1356.19 	any estate, right, title, or interest in, claim to, or lien upon, any of the several parcels of land 
1356.20 	described in the list hereto attached:
1356.21 	The list of taxes and penalties on real property for the county of ............................... 
1356.22 	remaining delinquent on the first Monday in January, ......., has been filed in the office of 
1356.23 	the court administrator of the district court of said county, of which that hereto attached is 
1356.24 	a copy. Therefore, you, and each of you, are hereby required to file in the office of said 
1356.25 	court administrator, on or before the 20th day after the publication of this notice and list, 
1356.26 	your answer, in writing, setting forth any objection or defense you may have to the taxes, 
1356.27 	or any part thereof, upon any parcel of land described in the list, in, to, or on which you 
1356.28 	have or claim any estate, right, title, interest, claim, or lien, and, in default thereof, judgment 
1356.29 	will be entered against such parcel of land for the taxes on such list appearing against it, 
1356.30 	and for all penalties, interest, and costs. Based upon said judgment, the land shall be sold 
1356.31 	to the state of Minnesota on the second Monday in May, .......
1356.32 	Inquiries as to the proceedings set forth above can be made to the county auditor of..... 
1356.33 	county whose address is ......

1357.1		(Signed) ........
	,
	
1357.2
1357.3		Court Administrator of the District Court of 
the
		
1357.4		County of ........
		
1357.5		(Here insert list.)
		
1357.6 	The notice must contain a narrative description of the various periods to redeem, specified 
1357.7 	in sections 281.17, 281.173, and 281.174, information about property tax relief programs 
1357.8 	that the property owner may be eligible for, including the property tax refund program under 
1357.9 	chapter 290A and the senior citizens' property tax deferral program under chapter 290B, 
1357.10 	and where further information about unencumbered interest in the property may be obtained. 
1357.11 	The notice must be made in the manner prescribed by the commissioner of revenue under 
1357.12 	subdivision 2. The commissioner of revenue must make the form available in multiple 
1357.13 	languages on the Department of Revenue's website. Counties must post these forms on their 
1357.14 	county website.
1357.15 	The list referred to in the notice shall be substantially in the following form:
1357.16 	List of real property for the county of ......................., on which taxes remain delinquent 
1357.17 	on the first Monday in January, .......
1357.18 	Town of (Fairfield),
1357.19 	Township (40), Range (20),

1357.20
1357.21
1357.22
1357.23
1357.24
1357.25
1357.26
1357.27	Names (and Current Filed 
Addresses) for the 
Taxpayers and Fee 
Owners and in Addition 
Those Parties Who Have 
Filed Their Addresses 
Pursuant to section 
276.041
	Subdivision of
Section
	Section
	Tax Parcel
Number
	Total Tax 
and Penalty
	
1357.28					$ cts.
	
1357.29
1357.30	John Jones (825 Fremont 
Fairfield, MN 55000)
	S.E. 1/4 of S.W. 1/4
	10
	23101
	2.20
	
1357.31
1357.32
1357.33
1357.34
1357.351357.36
1357.37
1357.38
1357.39
1357.40
1357.41
1357.42
1357.43
1358.1
1358.2
1358.3
1358.4
1358.5	Bruce Smith (2059 Hand 
Fairfield, MN 55000) and 
Fairfield State Bank (100 
Main Street Fairfield, 
MN 55000)
	That part of N.E. 1/4 of 
S.W. 1/4 desc. as follows: 
Beg. at the S.E. corner of 
said N.E. 1/4 of S.W. 1/4; 
thence N. along the E. 
line of said N.E. 1/4 of 
S.W. 1/4 a distance of 
600 ft.; thence W. parallel 
with the S. line of said 
N.E. 1/4 of S.W. 1/4 a 
distance of 600 ft.; thence 
S. parallel with said E. 
line a distance of 600 ft. 
to S. line of said N.E. 1/4 
of S.W. 1/4; thence E. 
along said S. line a 
distance of 600 ft. to the 
point of beg.
	21
	33211
	3.15
	
1358.6 	As to platted property, the form of heading shall conform to circumstances and be 
1358.7 	substantially in the following form:
1358.8 	City of (Smithtown)
1358.9 	Brown's Addition, or Subdivision

1358.10
1358.11
1358.12
1358.13
1358.14
1358.15
1358.16
1358.17	Names (and Current Filed 
Addresses) for the 
Taxpayers and Fee 
Owners and in Addition 
Those Parties Who Have 
Filed Their Addresses 
Pursuant to section 
276.041
	Lot
	Block
	Tax Parcel
Number
	Total Tax
and Penalty
	
1358.18					$ cts.
	
1358.19
1358.20	John Jones (825 Fremont 
Fairfield, MN 55000)
	15
	9
	58243
	2.20
	
1358.21
1358.22
1358.23
1358.24
1358.25	Bruce Smith (2059 Hand 
Fairfield, MN 55000) and 
Fairfield State Bank (100 
Main Street Fairfield, 
MN 55000)
	16
	9
	58244
	3.15
	
1358.26 	The names, descriptions, and figures employed in parentheses in the above forms are 
1358.27 	merely for purposes of illustration.
1358.28 	The name of the town, township, range or city, and addition or subdivision, as the case 
1358.29 	may be, shall be repeated at the head of each column of the printed lists as brought forward 
1358.30 	from the preceding column.
1358.31 	Errors in the list shall not be deemed to be a material defect to affect the validity of the 
1358.32 	judgment and sale.

1358.33 	Sec. 3. Minnesota Statutes 2022, section 281.23, subdivision 2, is amended to read:
1358.34 		Subd. 2.Form. The notice of expiration of redemption must contain the tax parcel 
1358.35 	identification numbers and legal descriptions of parcels subject to notice of expiration of 
1358.36 	redemption provisions prescribed under subdivision 1. The notice must also indicate the 
1358.37 	names of taxpayers and fee owners of record in the office of the county auditor at the time 
1358.38 	the notice is prepared and names of those parties who have filed their addresses according 
1358.39 	to section 276.041 and the amount of payment necessary to redeem as of the date of the 
1359.1 	notice. At the option of the county auditor, the current filed addresses of affected persons 
1359.2 	may be included on the notice. The notice is sufficient if substantially in the following form:
1359.3 	"NOTICE OF EXPIRATION OF REDEMPTION
1359.4 	Office of the County Auditor
1359.5 	County of ......................., State of Minnesota.
1359.6 	To all persons having an interest in lands described in this notice:
1359.7 	You are notified that the parcels of land described in this notice and located in the county 
1359.8 	of ................................, state of Minnesota, are subject to forfeiture to the state of Minnesota 
1359.9 	because of nonpayment of delinquent property taxes, special assessments, penalties, interest, 
1359.10 	and costs levied on those parcels. The time for redemption from forfeiture expires if a 
1359.11 	redemption is not made by the later of (1) 60 days after service of this notice on all persons 
1359.12 	having an interest in the lands of record at the office of the county recorder or registrar of 
1359.13 	titles, or (2) by the second Monday in May. The redemption must be made in my office.
1359.14 	IMPORTANT: If the parcels forfeit, they will be sold. If the proceeds from the sale 
1359.15 	exceed the total amount of the delinquent taxes, special assessments, penalties, interest, and 
1359.16 	costs assigned to those parcels, you may be entitled to the excess proceeds from the sale. 
1359.17 	If there are excess proceeds, you will be notified and must submit the claim form included 
1359.18 	with the notification in order to receive the proceeds.

1359.19
1359.20
1359.21
1359.22
1359.23
1359.24
1359.25
1359.26	Names (and Current 
Filed Addresses) for 
the Taxpayers and 
Fee Owners and 
Those Parties Who 
Have Filed Their 
Addresses Pursuant 
to section 276.041
		Legal 
Description
		Tax 
Parcel 
Number
		Amount Necessary to 
Redeem as of Date of 
Notice
	
1359.27	........
		........
		........
		........
	
1359.28	........
		........
		........
		........
	
1359.29 	FAILURE TO REDEEM THE LANDS PRIOR TO THE EXPIRATION
1359.30 	OF REDEMPTION WILL RESULT IN THE LOSS OF THE LAND AND
1359.31 	FORFEITURE TO THE STATE OF MINNESOTA.
1359.32 	Inquiries as to these proceedings can be made to the County Auditor for ............... County, 
1359.33 	whose address is set forth below.
1359.34 	Witness my hand and official seal this ............................ day of ................, .......

1360.1			........
		
1360.2			County Auditor
		
1360.3		(OFFICIAL SEAL)
			
1360.4			........
		
1360.5			(Address)
		
1360.6			........
		
1360.7			(Telephone)."
		
1360.8 	The notice must be posted by the auditor in the auditor's office, subject to public 
1360.9 	inspection, and must remain so posted until at least one week after the date of the last 
1360.10 	publication of notice, as provided in this section. Proof of posting must be made by the 
1360.11 	certificate of the auditor, filed in the auditor's office.

1360.12 	Sec. 4. [282.005] TAX-FORFEITED LAND; INITIAL SALE.
1360.13 		Subdivision 1.Public auction required. Prior to managing tax-forfeited lands as 
1360.14 	otherwise provided in this chapter, a county must first offer tax-forfeited parcels for sale 
1360.15 	pursuant to this section, except that any interests in iron-bearing stockpiles, minerals, or 
1360.16 	mineral interests are reserved for the state as provided under subdivision 8, and any parcel 
1360.17 	withdrawn from sale by the commissioner of natural resources under section 282.007 must 
1360.18 	be managed as provided in section 282.007. If a property cannot be sold under this section 
1360.19 	for more than the minimum bid, the state is deemed to have purchased the property through 
1360.20 	a credit bid and the parcels may be disposed of as otherwise provided in this chapter.
1360.21 		Subd. 2.Definitions. For the purposes of this section, the following terms have the 
1360.22 	meanings given:
1360.23 	(1) "interested party" means any party with an interest in the real estate including but 
1360.24 	not limited to an owner of the property, a lienholder, or any other party who has filed their 
1360.25 	name according to section 276.041;
1360.26 	(2) "mineral interest" means an interest in any minerals, including but not limited to 
1360.27 	iron, gas, coal, oil, copper, gold, or other valuable minerals; and
1360.28 	(3) "minimum bid" means the sum of delinquent taxes, special assessments, penalties, 
1360.29 	interests, and costs assigned to the parcel.
1360.30 		Subd. 3.Repurchase. Prior to the public sale required under this section, an interested 
1360.31 	party may repurchase the property by payment of the sum of all delinquent taxes and 
1360.32 	assessments computed under section 282.251, together with penalties, interest, and costs, 
1360.33 	that accrued or would have accrued if the parcel of land had not forfeited. A property 
1361.1 	repurchased under this subdivision is no longer subject to the requirements of this section. 
1361.2 	All rights and interests of all interested parties remain unaffected if a property is repurchased 
1361.3 	under this subdivision.
1361.4 		Subd. 4.Public auction. (a) The county auditor must sell the property at a public auction 
1361.5 	to the highest bidder in a manner reasonably calculated to facilitate public participation, 
1361.6 	including by online auction. The sale under this section must occur within six months of 
1361.7 	either the filing of the certificate of forfeiture pursuant to section 281.23, subdivision 9, or 
1361.8 	the date the property is vacated by the occupant, whichever is later. Notice of the sale under 
1361.9 	this subdivision must be provided by publication in newspapers, websites, and other forums 
1361.10 	that serve diverse communities in the county where the property is located at least 30 days 
1361.11 	before the commencement of the sale.
1361.12 	(b) At auction, the county auditor must calculate the minimum bid and make the figure 
1361.13 	available to those participating in the auction. The county auditor must also calculate and 
1361.14 	make available the initial price of the property, which is equal to the estimated market value, 
1361.15 	as determined by the most recent assessment. The property must not be sold for less than 
1361.16 	the initial price for 30 days after it is initially made available at auction. If no buyer is willing 
1361.17 	to pay the initial price, the price for the property must be reduced to the minimum bid. If 
1361.18 	no buyer is willing to pay the minimum bid, the state is deemed to have purchased the 
1361.19 	property through a credit bid and the parcels may be disposed of as otherwise provided in 
1361.20 	this chapter.
1361.21 		Subd. 5.Sale proceeds. The auction proceeds must be collected by the county auditor. 
1361.22 	The amount of the minimum bid shall be deposited into a county's forfeited tax sale fund. 
1361.23 	The proceeds in excess of the minimum bid shall be available for distribution pursuant to 
1361.24 	subdivision 6.
1361.25 		Subd. 6.Claims for surplus proceeds. (a) If a sale under this section results in a surplus, 
1361.26 	within 60 days of the sale, the county auditor must notify interested parties, in a manner 
1361.27 	described in subdivision 7, of the surplus by sending notice of the surplus and a claim form 
1361.28 	to the interested parties. The commissioner of revenue must prescribe the form and manner 
1361.29 	of the claim form. The notice must indicate that the sale of the property resulted in a surplus, 
1361.30 	the amount of the surplus, that parties with an interest in the property are entitled to the 
1361.31 	surplus amount, and that interested parties have an obligation to submit a claim for the 
1361.32 	surplus. Interested parties are entitled to make a claim for surplus proceeds under this 
1361.33 	subdivision if they file a claim within six months from the date the notice is first mailed to 
1361.34 	the interested parties.
1362.1 	(b) Unless disputed by the county auditor, if a single claim is filed, the county auditor 
1362.2 	must pay the surplus to the interested party filing the claim. A county must not pay any 
1362.3 	claimant until after the period of time in which to file a claim has expired.
1362.4 	(c) If there are multiple claims for a given property, the county must divide payments 
1362.5 	under this subdivision among the claimants according to each claimant's interest in proportion 
1362.6 	to the interest of all claimants. If the county auditor disputes a claim, or if there is a dispute 
1362.7 	as to how to divide the surplus among multiple claimants, the county auditor may deposit 
1362.8 	the surplus funds in district court and file a petition pursuant to Rule 67 of the Minnesota 
1362.9 	Rules of Civil Procedure, asking the court to determine claimants' rights to the funds 
1362.10 	deposited. The county auditor is entitled to recover the costs it reasonably incurs in 
1362.11 	commencing and maintaining this action from the amount of funds submitted to the court 
1362.12 	in the action. If the court determines that no claimant is entitled to the surplus, the surplus 
1362.13 	must be returned to the county and deposited into the county's forfeited tax sale fund.
1362.14 	(d) The county and the county auditor are entitled to absolute immunity related to any 
1362.15 	claim predicated on distribution of surplus if the county auditor distributed proceeds 
1362.16 	consistent with this subdivision.
1362.17 		Subd. 7.Manner of service. (a) A notice provided under subdivision 6 or 8 must be 
1362.18 	served as follows:
1362.19 	(1) by certified mail to all interested parties of record within 60 days of the sale;
1362.20 	(2) if an interested party of record has not filed a claim, a second notice must be sent by 
1362.21 	first class mail to all interested parties between 90 and 120 days after the sale;
1362.22 	(3) unless the property is vacant land, within 60 days of the sale, by first class mail to 
1362.23 	the property addressed to the attention of the occupants of the property; and
1362.24 	(4) within 60 days of the sale, by publishing a list of property sales with surplus with 
1362.25 	unexpired claims periods to the county's website.
1362.26 	(b) In addition, solely at the discretion of the county, a list of property sales with surplus 
1362.27 	with unexpired claims periods may be published in the county's designated newspaper for 
1362.28 	publication of required public notices.
1362.29 		Subd. 8.Claims for mineral interests; payments; appropriation. (a) Upon forfeiture, 
1362.30 	any iron-bearing stockpiles, minerals, and mineral interests shall be sold to the state for $50. 
1362.31 	The county auditor must notify interested parties within 60 days of the sale by sending 
1362.32 	notice and a claim form. The commissioner of revenue must prescribe the form and manner 
1362.33 	of the claim form. Notice must be provided in a manner described in subdivision 7. An 
1363.1 	interested party may submit a claim alleging that the value of the iron-bearing stockpiles, 
1363.2 	minerals, or mineral interests in the property exceeds the minimum bid. Claims must be 
1363.3 	submitted within six months from the date the notice under this subdivision is first mailed 
1363.4 	to the interested parties.
1363.5 	(b) If a claim is filed under this subdivision, the commissioner of natural resources must 
1363.6 	determine the value of the forfeited iron-bearing stockpiles, minerals, and mineral interests. 
1363.7 	If the value of the iron-bearing stockpiles, minerals, and mineral interests does not exceed 
1363.8 	the minimum bid, the claimant is not entitled to any payment under this subdivision. If the 
1363.9 	value of the iron-bearing stockpiles, minerals, and mineral interests exceeds the minimum 
1363.10 	bid, the claimant is entitled to a payment from the commissioner of natural resources equal 
1363.11 	to this excess amount.
1363.12 	(c) If there are multiple claims, the county must divide payments under this subdivision 
1363.13 	among the claimants according to each claimant's ownership interest in proportion to the 
1363.14 	ownership interest of all claimants. If the county auditor disputes a claim, or if there is a 
1363.15 	dispute as to how to divide the surplus among multiple claimants, the commissioner of 
1363.16 	natural resources must transfer the amount due to the claimants under this subdivision to 
1363.17 	the county auditor. The county auditor must then deposit the transferred amount in district 
1363.18 	court and file a petition pursuant to Rule 67 of the Minnesota Rules of Civil Procedure, 
1363.19 	asking the court to determine claimants' rights to the funds deposited. The county auditor 
1363.20 	is entitled to recover the costs it reasonably incurs in commencing and maintaining this 
1363.21 	action from the amount of funds submitted to the court in the action. If the court determines 
1363.22 	that no party that filed a claim is entitled to the surplus, the payment must be returned to 
1363.23 	the commissioner of natural resources and is canceled to the general fund.
1363.24 	(d) An amount necessary to make payments under this subdivision is annually 
1363.25 	appropriated from the general fund to the commissioner of natural resources.
1363.26 		Subd. 9.Expiration of surplus. If a sale under this section results in a surplus and either 
1363.27 	(1) no interested party makes a claim for the proceeds within the time allowed under 
1363.28 	subdivision 6, or (2) it is determined that no claimant was entitled to the surplus proceeds, 
1363.29 	then interested parties are no longer eligible to receive payment of any surplus. Once 
1363.30 	interested parties are no longer eligible to receive payment of any surplus, the proceeds 
1363.31 	must be returned to the county's forfeited tax sale fund.
1363.32 		Subd. 10.Rights affected by forfeiture. The forfeiture of the property extinguishes all 
1363.33 	liens, claims, and encumbrances other than:
1363.34 	(1) the rights of interested parties to surplus proceeds under this section;
1364.1 	(2) rights of redemption provided under federal law;
1364.2 	(3) easements and rights-of-way holders who are not interested parties; and
1364.3 	(4) benefits or burdens of any real covenants filed of record as of the date of forfeiture.
1364.4 		Subd. 11.Property bought by the state. Property deemed to be purchased by the state 
1364.5 	pursuant to this section shall be held in trust for the benefit of the taxing districts. All land 
1364.6 	becoming property of the state pursuant to this chapter shall be managed in accordance with 
1364.7 	chapters 93 and 282 and other applicable law.

1364.8 	Sec. 5. [282.007] LAND WITHDRAWN FROM INITIAL SALE.
1364.9 		Subdivision 1.Property withdrawn from sale. The commissioner of natural resources 
1364.10 	may withhold or withdraw from the sale required under section 282.005 any property allowed 
1364.11 	to be withheld or withdrawn from sale in section 85.012, 85.013, 282.01, subdivision 8, or 
1364.12 	282.018. The commissioner of natural resources must condemn parcels withheld or 
1364.13 	withdrawn from sale under this section according to procedures set forth in chapter 117. 
1364.14 	Notwithstanding section 282.005, subdivision 1, any interests in iron-bearing stockpiles, 
1364.15 	minerals, or mineral interests in property withheld or withdrawn from sale under this section 
1364.16 	are not severed from the property and are not subject to section 282.005, subdivision 8.
1364.17 		Subd. 2.Notice. The county auditor must provide notice to the commissioner of natural 
1364.18 	resources of the forfeiture of any lands eligible to be withheld or withdrawn from sale under 
1364.19 	this section. Notice must be provided within 30 days of either the filing of the certificate of 
1364.20 	forfeiture pursuant to section 281.23, subdivision 9, or the date the property is vacated by 
1364.21 	the occupant, whichever is later. Within 30 days of this notice, the commissioner of natural 
1364.22 	resources must notify the county auditor of a decision to withhold or withdraw a property 
1364.23 	from the sale under section 282.005. If no such notice is given, the county auditor must sell 
1364.24 	the property pursuant to section 282.005.
1364.25 		Subd. 3.Repurchase. Prior to the initiation of the condemnation proceedings of a 
1364.26 	property withheld or withdrawn from sale under this section, an interested party may 
1364.27 	repurchase the property by payment of the sum of all delinquent taxes and assessments 
1364.28 	computed under section 282.251, together with penalties, interest, and costs that accrued 
1364.29 	or would have accrued if the parcel of land had not forfeited. The county auditor must notify 
1364.30 	the commissioner of natural resources if a property is repurchased under this subdivision. 
1364.31 	A property repurchased under this subdivision is no longer subject to the requirements of 
1364.32 	this section or section 282.005. All rights and interests of all interested parties remain 
1365.1 	unaffected if a property is repurchased under this subdivision. For the purposes of this 
1365.2 	section, "interested party" has the meaning given in section 282.005, subdivision 2.
1365.3 		Subd. 4.Proceeds. Notwithstanding any law to the contrary in chapter 117, all proceeds 
1365.4 	from the condemnation proceedings of a property withheld or withdrawn from sale under 
1365.5 	this section must be transferred from the commissioner of natural resources to the county 
1365.6 	auditor. Any proceeds up to the value of the minimum bid are transferred to the county's 
1365.7 	forfeited tax sale fund. Any proceeds in excess of the minimum bid must be made available 
1365.8 	for claims pursuant to section 282.005, subdivision 6. For the purposes of this section, 
1365.9 	"minimum bid" has the meaning given in section 282.005, subdivision 2.

1365.10 	Sec. 6. Minnesota Statutes 2022, section 282.01, subdivision 6, is amended to read:
1365.11 		Subd. 6.Duties of commissioner after sale. (a) When any sale has been made by the 
1365.12 	county auditor under sections 282.01 282.005 to 282.13, the auditor shall immediately 
1365.13 	certify to the commissioner of revenue such information relating to such sale, on such forms 
1365.14 	as the commissioner of revenue may prescribe as will enable the commissioner of revenue 
1365.15 	to prepare an appropriate deed if the sale is for cash, or keep necessary records if the sale 
1365.16 	is on terms; and not later than October 31 of each year the county auditor shall submit to 
1365.17 	the commissioner of revenue a statement of all instances wherein any payment of principal, 
1365.18 	interest, or current taxes on lands held under certificate, due or to be paid during the preceding 
1365.19 	calendar years, are still outstanding at the time such certificate is made. When such statement 
1365.20 	shows that a purchaser or the purchaser's assignee is in default, the commissioner of revenue 
1365.21 	may instruct the county board of the county in which the land is located to cancel said 
1365.22 	certificate of sale in the manner provided by subdivision 5, provided that upon 
1365.23 	recommendation of the county board, and where the circumstances are such that the 
1365.24 	commissioner of revenue after investigation is satisfied that the purchaser has made every 
1365.25 	effort reasonable to make payment of both the annual installment and said taxes, and that 
1365.26 	there has been no willful neglect on the part of the purchaser in meeting these obligations, 
1365.27 	then the commissioner of revenue may extend the time for the payment for such period as 
1365.28 	the commissioner may deem warranted, not to exceed one year. On payment in full of the 
1365.29 	purchase price, appropriate conveyance in fee, in such form as may be prescribed by the 
1365.30 	attorney general, shall be issued by the commissioner of revenue, which conveyance must 
1365.31 	be recorded by the county and shall have the force and effect of a patent from the state 
1365.32 	subject to easements and restrictions of record at the date of the tax judgment sale, including, 
1365.33 	but without limitation, permits for telephone and electric power lines either by underground 
1365.34 	cable or conduit or otherwise, sewer and water lines, highways, railroads, and pipe lines for 
1365.35 	gas, liquids, or solids in suspension.
1366.1 	(b) The commissioner of revenue shall issue an appropriate conveyance in fee when 
1366.2 	approval from the county auditor is given based upon written confirmation from a licensed 
1366.3 	closing agent, title insurer, or title insurance agent as specified in section 82.641. For purposes 
1366.4 	of this paragraph, "written confirmation" means a written commitment or approval that the 
1366.5 	funding for the conveyance is held in an escrow account available for disbursement upon 
1366.6 	delivery of a conveyance. The county recorder or registrar of titles must not record or file 
1366.7 	a conveyance issued under this paragraph unless the conveyance contains a certification 
1366.8 	signed by the county auditor where the land is located stating that the recorder or registrar 
1366.9 	of titles can accept the conveyance for recording or filing. The conveyance issued by the 
1366.10 	commissioner of revenue shall not be effective as a conveyance until it is recorded. The 
1366.11 	conveyance shall be issued to the county auditor where the land is located. Upon receipt of 
1366.12 	the conveyance, the county auditor shall hold the conveyance until the conveyance is 
1366.13 	requested from a licensed closing agent, title insurer, or title insurance agent to settle and 
1366.14 	close on the conveyance. If a request for the conveyance is not made within 30 days of the 
1366.15 	date the conveyance is issued by the commissioner of revenue, the county auditor shall 
1366.16 	return the conveyance to the commissioner. If the conveyance is delivered to the licensed 
1366.17 	closing agent, title insurer, or title insurance agent and the closing does not occur within 
1366.18 	ten days of the request, the licensed closing agent, title insurer, or title insurance agent shall 
1366.19 	immediately return the conveyance to the county auditor and, upon receipt, the county 
1366.20 	auditor shall return the conveyance to the commissioner of revenue. The commissioner of 
1366.21 	revenue shall cancel and destroy all conveyances returned by the county auditor pursuant 
1366.22 	to this subdivision. The licensed closing agent, title insurer, or title insurance agent must 
1366.23 	promptly record the conveyance after the closing and must deliver an attested or certified 
1366.24 	copy to the county auditor and to the grantee or grantees named on the conveyance.

1366.25 	Sec. 7. Minnesota Statutes 2022, section 282.241, subdivision 1, is amended to read:
1366.26 		Subdivision 1.Repurchase requirements. The owner at the time of forfeiture, or the 
1366.27 	owner's heirs, devisees, or representatives, or any person to whom the right to pay taxes 
1366.28 	was given by statute, mortgage, or other agreement, may repurchase any parcel of land 
1366.29 	claimed by the state to be forfeited to the state for taxes unless before the time repurchase 
1366.30 	is made the parcel is sold under installment payments, or otherwise, by the state as provided 
1366.31 	by law, or is under mineral prospecting permit or lease, or proceedings have been commenced 
1366.32 	by the state or any of its political subdivisions or by the United States to condemn the parcel 
1366.33 	of land. The parcel of land may be repurchased for the sum of all delinquent taxes and 
1366.34 	assessments computed under section 282.251, together with penalties, interest, and costs, 
1366.35 	that accrued or would have accrued if the parcel of land had not forfeited to the state. Except 
1367.1 	for property which was homesteaded on the date of forfeiture, repurchase is permitted during 
1367.2 	six months only from the date of forfeiture, and in any case only after the adoption of a 
1367.3 	resolution by the board of county commissioners determining that by repurchase undue 
1367.4 	hardship or injustice resulting from the forfeiture will be corrected, or that permitting the 
1367.5 	repurchase will promote the use of the lands that will best serve the public interest. If the 
1367.6 	county board has good cause to believe that a repurchase installment payment plan for a 
1367.7 	particular parcel is unnecessary and not in the public interest, the county board may require 
1367.8 	as a condition of repurchase that the entire repurchase price be paid at the time of repurchase. 
1367.9 	A repurchase is subject to any easement, lease, or other encumbrance granted by the state 
1367.10 	before the repurchase, and if the land is located within a restricted area established by any 
1367.11 	county under Laws 1939, chapter 340, the repurchase must not be permitted unless the 
1367.12 	resolution approving the repurchase is adopted by the unanimous vote of the board of county 
1367.13 	commissioners. Notwithstanding the foregoing, any application to repurchase a property 
1367.14 	that is made available for sale pursuant to section 282.005 must be made before the date of 
1367.15 	that sale.
1367.16 	The person seeking to repurchase under this section shall pay all maintenance costs 
1367.17 	incurred by the county auditor during the time the property was tax-forfeited.

1367.18 	Sec. 8. Minnesota Statutes 2022, section 282.301, is amended to read:
1367.19 	282.301 RECEIPTS FOR PAYMENTS; CERTIFICATION BY COUNTY 
1367.20 	AUDITOR.
1367.21 	When any sale has been made under sections 282.005, 282.012, and 282.241 to 282.324, 
1367.22 	the purchaser shall receive from the county auditor at the time of repurchase a receipt, in 
1367.23 	such form as may be prescribed by the attorney general. When the purchase price of a parcel 
1367.24 	of land shall be paid in full, the following facts shall be certified by the county auditor to 
1367.25 	the commissioner of revenue of the state of Minnesota: the description of land and the date 
1367.26 	when the final installment of the purchase price was paid.

1367.27 	Sec. 9. [462A.43] HOUSING SUPPORT ACCOUNT.
1367.28 	The commissioner of management and budget shall establish the housing support account 
1367.29 	in the special revenue fund for the deposit of certain funds provided by law. Money 
1367.30 	appropriated from the account by law must provide housing support for Minnesotans.

1367.31 	EFFECTIVE DATE. This section is effective the day following final enactment.

1368.1 	Sec. 10. Laws 2024, chapter 113, section 1, subdivision 2, is amended to read:
1368.2 		Subd. 2.Requirements of participating counties. (a) If a county elects to participate 
1368.3 	in the settlement, or is deemed to elect to participate in the settlement under subdivision 4, 
1368.4 	the county must agree:
1368.5 	(1) to provide the claims administrator administering the settlement with all public 
1368.6 	property tax records reasonably necessary to effectuate the settlement agreement by August 
1368.7 	1, 2024;
1368.8 	(2) to make a good faith effort to sell all properties that forfeited between the applicable 
1368.9 	start date and December 31, 2023, other than those that are classified as conservation lands, 
1368.10 	those that are part of a rehabilitation program, and those in which title is no longer held in 
1368.11 	trust by the state of Minnesota for taxing districts;
1368.12 	(3) that for any sale made under clause (2):
1368.13 	(i) the county will conduct an auction of the property, either in person or online; list the 
1368.14 	property through a private broker; or, if the property meets the criteria in Minnesota Statutes, 
1368.15 	section 282.01, subdivision 7a, sell the property pursuant to that subdivision;
1368.16 	(ii) the sale will be for no less than its appraised value;
1368.17 	(iii) the sale will be for cash only and not on terms; and
1368.18 	(iv) notwithstanding any provision of Minnesota Statutes, chapter 282, to the contrary, 
1368.19 	for any property sold on or after the effective date of this section, 75 percent of the proceeds 
1368.20 	of any sale on or before June 30, 2027, and 85 percent of the proceeds of any sale on or 
1368.21 	after July 1, 2027, and on or before June 30, 2029, will be remitted to the commissioner for 
1368.22 	deposit in the general fund and the remaining proceeds will be retained by the county to be 
1368.23 	used for any permissible purpose; and
1368.24 	(v) if the property is a residential property with four or fewer residential units or a 
1368.25 	property that is unimproved with a structure, the property will first be offered for a period 
1368.26 	of 30 days to persons who intend to own and occupy the property as a residence or who 
1368.27 	intend to use the property for a noncommercial personal use; and
1368.28 	(vi) the sale will be advertised for 30 days by publication in newspapers, websites, and 
1368.29 	other forums that serve diverse communities in the county where the property is located;
1368.30 	(4) that any properties subject to sale under clause (2) that remain unsold on June 30, 
1368.31 	2029, must continue to be managed under the laws governing tax-forfeited lands until they 
1368.32 	are disposed of under those laws.
1369.1 	(b) The commissioner of revenue must create the form for a person purchasing a property 
1369.2 	described under paragraph (a), clause (3), item (v), to certify that they intend to use the 
1369.3 	property accordingly.

1369.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

1369.5 	Sec. 11. DEPARTMENT OF NATURAL RESOURCES; APPROPRIATION.
 1369.6 	$1,537,000 in fiscal year 2025 is appropriated from the general fund to the commissioner 
1369.7 	of natural resources to perform the duties required under Minnesota Statutes, section 282.005. 
1369.8 	The base for this appropriation is $1,537,000 in fiscal year 2026 and each fiscal year 
1369.9 	thereafter.

1369.10 	Sec. 12. EFFECTIVE DATE.
 1369.11 	Section 2 is effective beginning January 1, 2025. Section 3 is effective for notices 
1369.12 	provided after the day following final enactment. Sections 4 to 8 are effective for forfeitures 
1369.13 	occurring after December 31, 2023.

1369.14 	ARTICLE 71
1369.15 	MISCELLANEOUS TAX PROVISIONS

1369.16 	Section 1. Minnesota Statutes 2022, section 270C.21, is amended to read:
1369.17 	270C.21 TAXPAYER ASSISTANCE GRANTS; TAX CREDIT OUTREACH 
1369.18 	GRANTS.
1369.19 		Subdivision 1.Taxpayer assistance. When the commissioner awards grants to eligible 
1369.20 	organizations to coordinate, facilitate, encourage, and aid in the provision of taxpayer 
1369.21 	assistance services under this section, the commissioner must provide public notice of the 
1369.22 	grants in a timely manner so that the grant process is completed and grants are awarded by 
1369.23 	October 1, in order for recipient eligible organizations to adequately plan expenditures for 
1369.24 	the filing season. At the time the commissioner provides public notice, the commissioner 
1369.25 	must also notify eligible organizations that received grants in the previous biennium. Amounts 
1369.26 	appropriated for grants under this section are not subject to retention of administrative costs 
1369.27 	under section 16B.98, subdivision 14.
1369.28 		Subd. 2.Eligible organization Definitions. "Eligible organization" means an organization 
1369.29 	that meets the definition of eligible organization provided in section 7526A(e)(2)(B) of the 
1369.30 	Internal Revenue Code.
1369.31 	(a) For the purposes of this section, the following terms have the meanings given.
1370.1 	(b) "Eligible credit" means a credit, refund, or other tax preference targeting low-income 
1370.2 	taxpayers, including but not limited to the credits under sections 290.0661, 290.0671, 
1370.3 	290.0674, and 290.0693, and chapter 290A.
1370.4 	(c) "Tax outreach organization" means a nonprofit organization or federally recognized 
1370.5 	Indian Tribe with experience serving demographic groups or geographic regions that have 
1370.6 	historically had low rates of participation in eligible credits.
1370.7 	(d) "Taxpayer assistance services" means accounting and tax preparation services 
1370.8 	provided by volunteers to low-income, elderly, and disadvantaged Minnesota residents to 
1370.9 	help them file federal and state income tax returns and Minnesota property tax refund claims 
1370.10 	and to provide personal representation before the Department of Revenue and Internal 
1370.11 	Revenue Service.
1370.12 	(e) "Volunteer taxpayer assistance organization" means an eligible organization qualifying 
1370.13 	under section 7526A(e)(2)(B) of the Internal Revenue Code of 1986.
1370.14 		Subd. 3.Taxpayer assistance grants. The commissioner must make grants to one or 
1370.15 	more volunteer taxpayer assistance organizations to coordinate, facilitate, encourage, and 
1370.16 	aid in the provision of taxpayer assistance services.
1370.17 		Subd. 4.Tax credit outreach grants. The commissioner must make one or more grants 
1370.18 	to tax outreach organizations and volunteer assistance organizations. Grants provided under 
1370.19 	this subdivision must be used to:
1370.20 	(1) publicize and promote the availability of eligible credits to taxpayers likely to be 
1370.21 	eligible for those credits; or
1370.22 	(2) provide taxpayer assistance services.

1370.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

1370.24 	Sec. 2. Minnesota Statutes 2022, section 297F.01, subdivision 10b, is amended to read:
1370.25 		Subd. 10b.Moist snuff. "Moist snuff" means any finely cut, ground, or powdered 
1370.26 	smokeless tobacco, or similar product containing nicotine, that is intended to be placed or 
1370.27 	dipped in the mouth.

1370.28 	EFFECTIVE DATE. This section is effective July 1, 2024.

1370.29 	Sec. 3. Minnesota Statutes 2022, section 297F.01, subdivision 19, is amended to read:
1370.30 		Subd. 19.Tobacco products. (a) "Tobacco products" means any product containing, 
1370.31 	made, or derived from tobacco that is intended for human consumption, whether chewed, 
1371.1 	smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, or 
1371.2 	any component, part, or accessory of a tobacco product, including, but not limited to, cigars; 
1371.3 	cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other smoking 
1371.4 	tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing 
1371.5 	tobacco; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds 
1371.6 	and forms of tobacco; but does not include cigarettes as defined in this section. Tobacco 
1371.7 	products includes nicotine solution products and moist snuff. Tobacco products excludes 
1371.8 	any tobacco product that has been approved by the United States Food and Drug 
1371.9 	Administration for sale as a tobacco cessation product, as a tobacco dependence product, 
1371.10 	or for other medical purposes, and is being marketed and sold solely for such an approved 
1371.11 	purpose.
1371.12 	(b) Except for the imposition of tax under section 297F.05, subdivisions 3 and 4, tobacco 
1371.13 	products includes a premium cigar, as defined in subdivision 13a.

1371.14 	EFFECTIVE DATE. This section is effective July 1, 2024.

1371.15 	Sec. 4. APPROPRIATION; TAX CREDIT OUTREACH GRANTS; TAXPAYER 
1371.16 	ASSISTANCE GRANTS.
 1371.17 	(a) $1,000,000 in fiscal year 2025 is appropriated from the general fund to the 
1371.18 	commissioner of revenue for tax credit outreach grants under Minnesota Statutes, section 
1371.19 	270C.21, subdivision 4. This appropriation is in addition to the amount appropriated in 
1371.20 	Laws 2023, chapter 64, article 7, section 30.
1371.21 	(b) The base for the $1,000,000 appropriation in paragraph (a) is $500,000 in fiscal year 
1371.22 	2026 and $500,000 in fiscal year 2027.
1371.23 	(c) $1,000,000 in fiscal year 2025 is appropriated from the general fund to the 
1371.24 	commissioner of revenue for taxpayer assistance grants under Minnesota Statutes, section 
1371.25 	270C.21, subdivision 3. This appropriation is in addition to the amount appropriated for 
1371.26 	taxpayer assistance in Laws 2023, chapter 62, article 1, section 14, subdivision 2.
1371.27 	(d) The base for the $1,000,000 appropriation in paragraph (c) is $500,000 in fiscal year 
1371.28 	2026 and $500,000 in fiscal year 2027.

1371.29 	Sec. 5. DEPARTMENT OF REVENUE; ADMINISTRATIVE APPROPRIATION.
 1371.30 	$4,000,000 in fiscal year 2025 is appropriated from the general fund to the commissioner 
1371.31 	of revenue to administer this act. This is a onetime appropriation and is available until June 
1371.32 	30, 2027.

1372.1 	ARTICLE 72
1372.2 	EMPLOYEE COMPENSATION

1372.3 	Section 1. Minnesota Statutes 2023 Supplement, section 3.855, subdivision 2, is amended 
1372.4 	to read:
1372.5 		Subd. 2.Unrepresented State employee compensation. (a) The commissioner of 
1372.6 	management and budget shall submit to the chair of the commission any compensation 
1372.7 	plans or salaries prepared under section 43A.18, subdivisions 2, 3, 3b, and 4. The chancellor 
1372.8 	of the Minnesota State Colleges and Universities shall submit any compensation plan under 
1372.9 	section 43A.18, subdivision 3a. If the commission disapproves a compensation plan or 
1372.10 	salary, the commission shall specify in writing to the parties those portions with which it 
1372.11 	disagrees and its reasons. If the commission approves a compensation plan or salary, it shall 
1372.12 	submit the matter to the legislature to be accepted or rejected under this section.
1372.13 	(b) When the legislature is not in session, the commission may give interim approval to 
1372.14 	a salary or compensation plan. The commission shall submit the salaries and compensation 
1372.15 	plans for which it has provided approval to the entire legislature for ratification at a special 
1372.16 	legislative session called to consider them or at its next regular legislative session as provided 
1372.17 	in this section. Approval or disapproval by the commission is not binding on the legislature.
1372.18 	(c) When the legislature is not in session, (b) The proposed salary or compensation plan 
1372.19 	must be implemented upon its approval by submission to the commission, and state 
1372.20 	employees covered by the proposed plan or salary do not have the right to strike while the 
1372.21 	interim approval is in effect.

1372.22 	Sec. 2. Minnesota Statutes 2023 Supplement, section 3.855, subdivision 3, is amended to 
1372.23 	read:
1372.24 		Subd. 3.Other salaries and compensation plans salary and compensation plan. The 
1372.25 	commission shall:
1372.26 	(1) review and approve or reject a plan for compensation and terms and conditions of 
1372.27 	employment prepared and submitted by the commissioner of management and budget under 
1372.28 	section 43A.18, subdivision 2, covering all state employees who are not represented by an 
1372.29 	exclusive bargaining representative and whose compensation is not provided for by chapter 
1372.30 	43A or other law;
1372.31 	(2) review and approve or reject a plan for total compensation and terms and conditions 
1372.32 	of employment for employees in positions identified as being managerial under section 
1373.1 	43A.18, subdivision 3, whose salaries and benefits are not otherwise provided for in law or 
1373.2 	other plans established under chapter 43A;
1373.3 	(3) review and approve or reject recommendations for salary range of officials of higher 
1373.4 	education systems under section 15A.081, subdivision 7c;
1373.5 	(4) review and approve or reject plans for compensation, terms, and conditions of 
1373.6 	employment proposed under section 43A.18, subdivisions 3a, 3b, and 4; and
1373.7 	(5) review and approve or reject the plan for compensation, terms, and conditions of 
1373.8 	employment of classified employees in the office of the legislative auditor under section 
1373.9 	3.971, subdivision 2.

1373.10 	Sec. 3. Minnesota Statutes 2023 Supplement, section 3.855, subdivision 6, is amended to 
1373.11 	read:
1373.12 		Subd. 6.Information required; collective bargaining agreements, memoranda of 
1373.13 	understanding, and interest arbitration awards. Within 14 days after the implementation 
1373.14 	of a collective bargaining agreement, memorandum of understanding, compensation plan,
1373.15 	or receipt of an interest arbitration award, the commissioner of management and budget 
1373.16 	must submit to the Legislative Coordinating Commission the following:
1373.17 	(1) a copy of the collective bargaining agreement or compensation plan showing changes 
1373.18 	from previous agreements and a copy of the executed agreement;
1373.19 	(2) a copy of any memorandum of understanding that has a fiscal impact or interest 
1373.20 	arbitration award;
1373.21 	(3) a comparison of biennial compensation costs under the current agreement or plan to 
1373.22 	the projected biennial compensation costs under the new agreement, memorandum of 
1373.23 	understanding, or interest arbitration award; and
1373.24 	(4) a comparison of biennial compensation costs under the current agreement or plan to 
1373.25 	the projected biennial compensation costs for the following biennium under the new 
1373.26 	agreement, memorandum of understanding, or interest arbitration award.

1373.27 	Sec. 4. Minnesota Statutes 2022, section 43A.05, subdivision 3, is amended to read:
1373.28 		Subd. 3.Commissioner's plan. The commissioner shall periodically develop and 
1373.29 	establish pursuant to this chapter a commissioner's plan. The commissioner shall submit 
1373.30 	the plan, before becoming effective, to the Legislative Coordinating Commission for 
1373.31 	approval.

1374.1 	Sec. 5. Minnesota Statutes 2022, section 43A.18, subdivision 2, is amended to read:
1374.2 		Subd. 2.Commissioner's plan. Except as provided in section 43A.01, the compensation, 
1374.3 	terms and conditions of employment for all classified and unclassified employees, except 
1374.4 	unclassified employees in the legislative and judicial branches, who are not covered by a 
1374.5 	collective bargaining agreement and not otherwise provided for in chapter 43A or other law 
1374.6 	are governed solely by a plan developed by the commissioner. The Legislative Coordinating 
1374.7 	Commission shall review and approve, reject, or modify the plan under section 3.855, 
1374.8 	subdivision 2. The plan need not be adopted in accordance with the rulemaking provisions 
1374.9 	of chapter 14.

1374.10 	Sec. 6. Minnesota Statutes 2022, section 43A.18, subdivision 3, is amended to read:
1374.11 		Subd. 3.Managerial plan. (a) The commissioner shall identify individual positions or 
1374.12 	groups of positions in the classified and unclassified service in the executive branch as being 
1374.13 	managerial. The list must not include positions listed in subdivision 4.
1374.14 	(b) The commissioner shall periodically prepare a plan for total compensation and terms 
1374.15 	and conditions of employment for employees of those positions identified as being managerial 
1374.16 	and whose salaries and benefits are not otherwise provided for in law or other plans 
1374.17 	established under this chapter. Before becoming effective those portions of the plan 
1374.18 	establishing compensation and terms and conditions of employment must be reviewed and 
1374.19 	approved or modified by submitted to the Legislative Coordinating Commission and the 
1374.20 	legislature under section 3.855, subdivisions 2 and 3.
1374.21 	(c) Incumbents of managerial positions as identified under this subdivision must be 
1374.22 	excluded from any bargaining units under chapter 179A.
1374.23 	(d) The management compensation plan must provide methods and levels of 
1374.24 	compensation for managers that will be generally comparable to those applicable to managers 
1374.25 	in other public and private employment. The plan must ensure that compensation within 
1374.26 	assigned salary ranges is related to level of performance. The plan must also provide a 
1374.27 	procedure for establishment of a salary rate for a newly created position and a new appointee 
1374.28 	to an existing position and for progression through assigned salary ranges. The employee 
1374.29 	benefits established under the provisions of the managerial plan may be extended to agency 
1374.30 	heads whose salaries are established in section 15A.0815 and to constitutional officers, 
1374.31 	judges of the Workers' Compensation Court of Appeals, and Tax Court judges.

1375.1 	Sec. 7. Minnesota Statutes 2022, section 43A.18, subdivision 9, is amended to read:
1375.2 		Subd. 9.Summary information on website. Before the commissioner submits a 
1375.3 	proposed collective bargaining agreement, arbitration award, or compensation plan to the 
1375.4 	Legislative Coordinating Commission for review under section 3.855, the commissioner 
1375.5 	must post on a state website a summary of the proposed agreement, award, or plan. The 
1375.6 	summary must include the amount of and nature of proposed changes in employee 
1375.7 	compensation, the estimated cost to the state of proposed changes in employee compensation, 
1375.8 	and a description of proposed significant changes in policy. After approval of an agreement, 
1375.9 	award, or plan by the Legislative Coordinating Commission, the commissioner must provide 
1375.10 	a link from the commissioner's summary to the full text of the agreement, award, or plan. 
1375.11 	The summary must remain on the website at least until the full legislature has approved the 
1375.12 	agreement, award, or plan. This section also applies to agreements, awards, and plans
1375.13 	covering employees of the Minnesota State Colleges and Universities and to compensation 
1375.14 	plans that must be submitted to the Legislative Coordinating Commission by other executive 
1375.15 	appointing authorities. The Minnesota State Colleges and Universities and other executive 
1375.16 	appointing authorities must submit information to the commissioner, at a time and in a 
1375.17 	manner specified by the commissioner, so the commissioner can post information relating 
1375.18 	to these appointing authorities on the web as required by this section.

1375.19 	Sec. 8. REPEALER.
 1375.20 	Minnesota Statutes 2023 Supplement, section 3.855, subdivision 5, is repealed.

1375.21 	ARTICLE 73
1375.22 	PAID LEAVE

1375.23 	Section 1. [268B.001] CITATION.
1375.24 	This chapter may be cited as the "Minnesota Paid Leave Law."

1375.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

1375.26 	Sec. 2. Minnesota Statutes 2023 Supplement, section 268B.01, subdivision 3, is amended 
1375.27 	to read:
1375.28 		Subd. 3.Applicant. "Applicant" means an individual or the individual's authorized 
1375.29 	representative applying for leave with benefits under this chapter.

1375.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

1376.1 	Sec. 3. Minnesota Statutes 2023 Supplement, section 268B.01, is amended by adding a 
1376.2 	subdivision to read:
1376.3 		Subd. 4a.Authorized representative. "Authorized representative" means an individual 
1376.4 	designated by the person or the individual's legal representative to act on their behalf. This 
1376.5 	individual may be a family member, guardian, or other individual designated by the person 
1376.6 	or the individual's legal representative, if any, to assist in purchasing and arranging for 
1376.7 	supports. For the purposes of this chapter, an authorized representative must be at least 18 
1376.8 	years of age.

1376.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

1376.10 	Sec. 4. Minnesota Statutes 2023 Supplement, section 268B.01, subdivision 5, is amended 
1376.11 	to read:
1376.12 		Subd. 5.Base period. (a) "Base period," unless otherwise provided in this subdivision, 
1376.13 	means the most recent four completed calendar quarters before the effective date of an 
1376.14 	applicant's application for family or medical leave benefits if the application has an effective 
1376.15 	date occurring after the month following the most recent completed calendar quarter. The 
1376.16 	base period under this paragraph is as follows:

1376.17
1376.18
1376.19	If the application for family or medical leave 
benefits is effective on or between these 
dates:
	The base period is the prior:
	
1376.20	February 1 to March 31
	January 1 to December 31
	
1376.21	May 1 to June 30
	April 1 to March 31
	
1376.22	August 1 to September 30
	July 1 to June 30
	
1376.23	November 1 to December 31
	October 1 to September 30
	
1376.24 	(b) If an application for family or medical leave benefits has an effective date that is 
1376.25 	during the month following the most recent completed calendar quarter, then the base period 
1376.26 	is the first four of the most recent five completed calendar quarters before the effective date 
1376.27 	of an applicant's application for family or medical leave benefits. The base period under 
1376.28 	this paragraph is as follows:

1376.29
1376.30
1376.31	If the application for family or medical leave 
benefits is effective on or between these 
dates:
	The base period is the prior:
	
1376.32	January 1 to January 31
	October 1 to September 30
	
1376.33	April 1 to April 30
	January 1 to December 31
	
1376.34	July 1 to July 31
	April 1 to March 31
	
1376.35	October 1 to October 31
	July 1 to June 30
	
1377.1 	(c) Regardless of paragraph (a), a base period of the first four of the most recent five 
1377.2 	completed calendar quarters must be used if the applicant would have more wage credits 
1377.3 	under that base period than under a base period of the four most recent completed calendar 
1377.4 	quarters.
1377.5 	(d) If the applicant has insufficient wage credits to establish a benefit account under a 
1377.6 	base period of the four most recent completed calendar quarters, or a base period of the first 
1377.7 	four of the most recent five completed calendar quarters, but during either base period the 
1377.8 	applicant received workers' compensation for temporary disability under chapter 176 or a 
1377.9 	similar federal law or similar law of another state, or if the applicant whose own serious 
1377.10 	illness caused a loss of work for which the applicant received compensation for loss of 
1377.11 	wages from some other source, the applicant may request a base period as follows:
1377.12 	(1) if an applicant was compensated for a loss of work of seven to 13 weeks during a 
1377.13 	base period referred to in paragraph (a) or (b), then the base period is the first four of the 
1377.14 	most recent six completed calendar quarters before the effective date of the application for 
1377.15 	family or medical leave benefits;
1377.16 	(2) if an applicant was compensated for a loss of work of 14 to 26 weeks during a base 
1377.17 	period referred to in paragraph (a) or (b), then the base period is the first four of the most 
1377.18 	recent seven completed calendar quarters before the effective date of the application for 
1377.19 	family or medical leave benefits;
1377.20 	(3) if an applicant was compensated for a loss of work of 27 to 39 weeks during a base 
1377.21 	period referred to in paragraph (a) or (b), then the base period is the first four of the most 
1377.22 	recent eight completed calendar quarters before the effective date of the application for 
1377.23 	family or medical leave benefits; and
1377.24 	(4) if an applicant was compensated for a loss of work of 40 to 52 or more weeks during 
1377.25 	a base period referred to in paragraph (a) or (b), then the base period is the first four of the 
1377.26 	most recent nine completed calendar quarters before the effective date of the application 
1377.27 	for family or medical leave benefits.
1377.28 	(e) For an applicant under a private plan as provided in section 268B.10, the base period 
1377.29 	is those most recent four quarters in which wage credits were earned with the current 
1377.30 	employer as provided by the current employer. If an employer does not have four quarters 
1377.31 	of wage detail information, the employer must accept an employee's certification of wage 
1377.32 	credits, based on the employee's records. If the employee does not provide certification of 
1377.33 	additional wage credits, the employer may use a base period that consists of all available 
1377.34 	quarters.
1378.1 	(f) The base period is calculated once during the benefit year.

1378.2 	EFFECTIVE DATE. This section is effective the day following final enactment.

1378.3 	Sec. 5. Minnesota Statutes 2023 Supplement, section 268B.01, subdivision 8, is amended 
1378.4 	to read:
1378.5 		Subd. 8.Benefit year. (a) Except as provided in paragraph paragraphs (b) to (d), "benefit 
1378.6 	year" means the period of 52 calendar weeks beginning the date a benefit account effective 
1378.7 	date of leave under section 268B.04 is effective. For a benefit account established an effective 
1378.8 	date of leave that is any January 1, April 1, July 1, or October 1, the benefit year will be a 
1378.9 	period of 53 calendar weeks.
1378.10 	(b) For an individual with multiple employers participating in the state plan, "benefit 
1378.11 	year" means the period of 52 calendar weeks beginning the date an effective date of leave 
1378.12 	under section 268B.04 is effective for any of the multiple employers.
1378.13 	(b) (c) For a private plan under section 268B.10, "benefit year" means:
1378.14 	(1) a calendar year;
1378.15 	(2) any fixed 12-month period, such as a fiscal year or a 12-month period measured 
1378.16 	forward from an employee's first date of employment;
1378.17 	(3) a 12-month period measured forward from an employee's first day of leave taken; 
1378.18 	or
1378.19 	(4) a rolling 12-month period measured backward from an employee's first day of leave 
1378.20 	taken.
1378.21 	Employers are required to notify employees of their benefit year within 30 days of the 
1378.22 	private plan approval and first day of employment.
1378.23 	(d) For individuals with multiple employers with at least one employer participating in 
1378.24 	the state plan and at least one employer participating in a private plan:
1378.25 	(1) for the employer or employers participating in the state plan, "benefit year" means 
1378.26 	the period of 52 calendar weeks beginning the effective date of leave is effective for any 
1378.27 	employer; and
1378.28 	(2) the employer or employers participating in a private plan may define their benefit 
1378.29 	year according to paragraph (c).

1378.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

1379.1 	Sec. 6. Minnesota Statutes 2023 Supplement, section 268B.01, subdivision 15, is amended 
1379.2 	to read:
1379.3 		Subd. 15.Covered employment. (a) "Covered employment" means performing services 
1379.4 	of whatever nature, unlimited by the relationship of master and servant as known to the 
1379.5 	common law, or any other legal relationship performed for wages or under any contract 
1379.6 	calling for the performance of services, written or oral, express or implied.
1379.7 	(b) For the purposes of this chapter, covered employment means an employee's entire 
1379.8 	employment during a calendar year if:
1379.9 	(1) 50 percent or more of the employment during the calendar year is performed in 
1379.10 	Minnesota; or
1379.11 	(2) 50 percent or more of the employment during the calendar year is not performed in 
1379.12 	Minnesota or any other single state within the United States, or Canada United States territory 
1379.13 	or foreign nation, but some of the employment is performed in Minnesota and the employee's 
1379.14 	residence is in Minnesota during 50 percent or more of the calendar year; or.
1379.15 	(3) 50 percent or more of the employment during the calendar year is not performed in 
1379.16 	Minnesota or any other state, or Canada, but the place from where the employee's 
1379.17 	employment is controlled and directed is based in Minnesota.
1379.18 	(c) "Covered employment" does not include:
1379.19 	(1) a self-employed individual;
1379.20 	(2) an independent contractor; or
1379.21 	(3) employment by a seasonal employee, as defined in subdivision 35.
1379.22 	(d) Entities that are excluded under this section may opt in to coverage following a 
1379.23 	procedure determined by the commissioner. In such cases, services provided by employees 
1379.24 	are considered covered employment under subdivision 15.
1379.25 	(e) The commissioner may adopt rules in accordance with chapter 14 to:
1379.26 	(1) further define the application of this subdivision; and
1379.27 	(2) establish the criteria for covered employment for individuals that do not meet the 
1379.28 	criteria in paragraphs (a) and (b), but that perform services as an employee to a Minnesota 
1379.29 	employer.

1379.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

1380.1 	Sec. 7. Minnesota Statutes 2023 Supplement, section 268B.01, is amended by adding a 
1380.2 	subdivision to read:
1380.3 		Subd. 15a.Covered individual. "Covered individual" means either:
1380.4 	(1) an applicant who meets the financial eligibility requirements of section 268B.04, 
1380.5 	subdivision 2, if services provided are covered employment under subdivision 15; or
1380.6 	(2) a self-employed individual or independent contractor who has elected coverage under 
1380.7 	section 268B.11 and who meets the financial eligibility requirements under section 268B.11.

1380.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

1380.9 	Sec. 8. Minnesota Statutes 2023 Supplement, section 268B.01, is amended by adding a 
1380.10 	subdivision to read:
1380.11 		Subd. 15b.Effective date of application. "Effective date of application" means the date 
1380.12 	on which an application is submitted to the department.

1380.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

1380.14 	Sec. 9. Minnesota Statutes 2023 Supplement, section 268B.01, is amended by adding a 
1380.15 	subdivision to read:
1380.16 		Subd. 15c.Effective date of leave. "Effective date of leave" means the date of first 
1380.17 	absence associated with a leave under section 268B.09.

1380.18 	EFFECTIVE DATE. This section is effective the day following final enactment.

1380.19 	Sec. 10. Minnesota Statutes 2023 Supplement, section 268B.01, subdivision 23, is amended 
1380.20 	to read:
1380.21 		Subd. 23.Family member. (a) "Family member" means, with respect to an applicant:
1380.22 	(1) a spouse or domestic partner;
1380.23 	(2) a child, including a biological child, adopted child, or foster child, a stepchild, child 
1380.24 	of a domestic partner, or a child to whom the applicant stands in loco parentis, is a legal 
1380.25 	guardian, or is a de facto parent custodian;
1380.26 	(3) a parent or legal guardian of the applicant;
1380.27 	(4) a sibling;
1380.28 	(5) a grandchild;
1380.29 	(6) a grandparent or spouse's grandparent;
1381.1 	(7) a son-in-law or daughter-in-law; and
1381.2 	(8) an individual who has a personal relationship with the applicant that creates an 
1381.3 	expectation and reliance that the applicant care for the individual without compensation, 
1381.4 	whether or not the applicant and the individual reside together.
1381.5 	(b) For the purposes of this chapter, "grandchild" means a child of the applicant's child.
1381.6 	(c) For the purposes of this chapter, "grandparent" means a parent of the applicant's 
1381.7 	parent.
1381.8 	(d) For the purposes of this chapter, "parent" means the biological, adoptive, de facto
1381.9 	custodian, or foster parent, stepparent, or legal guardian of an applicant or the applicant's 
1381.10 	spouse, or an individual who stood in loco parentis to an applicant when the applicant was 
1381.11 	a child.

1381.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

1381.13 	Sec. 11. Minnesota Statutes 2023 Supplement, section 268B.01, is amended by adding a 
1381.14 	subdivision to read:
1381.15 		Subd. 23a.Financially eligible. "Financially eligible" means an applicant meets the 
1381.16 	requirements established under section 268B.04, subdivision 2.

1381.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

1381.18 	Sec. 12. Minnesota Statutes 2023 Supplement, section 268B.01, is amended by adding a 
1381.19 	subdivision to read:
1381.20 		Subd. 27a.Initial paid week. "Initial paid week" means the first seven days of a leave, 
1381.21 	which must be paid and is a payable period for leave types including family care, medical 
1381.22 	care related to pregnancy, serious health condition, qualifying exigency, or safety leave. 
1381.23 	For intermittent leave, initial paid week means seven consecutive or nonconsecutive, or a 
1381.24 	combination of consecutive and nonconsecutive, calendar days from the effective date of 
1381.25 	leave, of which only days when leave is taken are payable. The initial week must be paid 
1381.26 	retroactively after the applicant has met the seven-day qualifying event under section 
1381.27 	268B.06, subdivision 2. A retroactive payment must be included in the first benefit payment 
1381.28 	to the applicant.

1381.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

1382.1 	Sec. 13. Minnesota Statutes 2023 Supplement, section 268B.01, subdivision 44, is amended 
1382.2 	to read:
1382.3 		Subd. 44.Typical workweek. "Typical workweek" means:
1382.4 	(1) for an hourly employee, the average number of hours worked per week by an 
1382.5 	employee within the high quarter during the base year; or last two quarters prior to the 
1382.6 	effective date of application.
1382.7 	(2) 40 hours for a salaried employee, regardless of the number of hours the salaried 
1382.8 	employee typically works.

1382.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

1382.10 	Sec. 14. Minnesota Statutes 2023 Supplement, section 268B.04, is amended to read:
1382.11 	268B.04 BENEFIT ACCOUNT FINANCIAL ELIGIBILITY; BENEFITS.
1382.12 		Subdivision 1.Application for benefits; determination of benefit account financial 
1382.13 	eligibility. (a) An application for benefits may be filed up to 60 days before leave taken 
1382.14 	under chapter 268B in person, by mail, or by electronic transmission as the commissioner 
1382.15 	may require. The applicant must include certification supporting a request for leave under 
1382.16 	this chapter. The applicant must meet eligibility requirements and must provide all requested 
1382.17 	information in the manner required. If the applicant fails to provide all requested information, 
1382.18 	the communication is not an application for family and medical leave benefits within a time 
1382.19 	period to be specified by the commissioner, the application is considered closed and the 
1382.20 	division must not further act on it.
1382.21 	(b) The commissioner must examine each application for benefits to determine the base 
1382.22 	period and the benefit year, and based upon all the covered employment in the base period 
1382.23 	the commissioner must determine the financial eligibility of the applicant, which includes 
1382.24 	the weekly benefit amount available, if any, and the maximum amount of benefits available, 
1382.25 	if any. The determination, which is a document separate and distinct from a document titled 
1382.26 	a determination of eligibility or determination of ineligibility, must be titled determination 
1382.27 	of benefit account. A determination of benefit account must be sent to the applicant and all 
1382.28 	base period employers, by mail or electronic transmission. The department must notify all 
1382.29 	employers from which the applicant is taking leave, either in writing or electronically, not 
1382.30 	more than five business days after a claim for benefits has been filed by an employee or 
1382.31 	former employee as provided under this section.
1382.32 	(c) If a base period employer did not provide wage detail information for the applicant 
1382.33 	as required under section 268B.12, the commissioner may accept an applicant certification 
1383.1 	of wage credits, based upon the applicant's records, and issue a determination of benefit 
1383.2 	account determine the financial eligibility of the applicant.
1383.3 	(d) The commissioner may, at any time within 12 months from the establishment of a 
1383.4 	benefit account leave, reconsider any determination of benefit account and make an amended 
1383.5 	determination if the commissioner finds that the wage credits listed in the determination 
1383.6 	were incorrect for any reason. An amended determination of benefit account must be 
1383.7 	promptly sent to the applicant and all any impacted base period employers, by mail or 
1383.8 	electronic transmission. This paragraph does not apply to documents titled determinations 
1383.9 	of eligibility or determinations of ineligibility issued.
1383.10 	(e) If an amended determination of benefit account reduces the weekly benefit amount 
1383.11 	or maximum amount of benefits available, any benefits that have been paid greater than the 
1383.12 	applicant was entitled is an overpayment of benefits. A determination or amended 
1383.13 	determination issued under this section that results in an overpayment of benefits must set 
1383.14 	out the amount of the overpayment and the requirement that the overpaid benefits must be 
1383.15 	repaid according to section 268B.185.
1383.16 		Subd. 2.Benefit account requirements. To establish a benefit account, an applicant 
1383.17 	must have wage credits of at least 5.3 percent of the state's average annual wage rounded 
1383.18 	down to the next lower $100.
1383.19 		Subd. 3.Weekly benefit amount; maximum amount of benefits available; prorated 
1383.20 	amount. (a) Subject to the maximum weekly benefit amount, an applicant's weekly benefit 
1383.21 	is calculated by adding the amounts obtained by applying the following percentage to an 
1383.22 	applicant's average typical workweek and weekly wage during the high quarter of the base 
1383.23 	period:
1383.24 	(1) 90 percent of wages that do not exceed 50 percent of the state's average weekly wage; 
1383.25 	plus
1383.26 	(2) 66 percent of wages that exceed 50 percent of the state's average weekly wage but 
1383.27 	not 100 percent; plus
1383.28 	(3) 55 percent of wages that exceed 100 percent of the state's average weekly wage.
1383.29 	(b) For applicants that have changed employers within the base period, the weekly benefit 
1383.30 	amount is calculated based on the highest quarter of wages in the base period.
1383.31 	(b) (c) The state's average weekly wage is the average wage as calculated under section 
1383.32 	268.035, subdivision 23, at the time a benefit amount is first determined.
1384.1 	(c) (d) The maximum weekly benefit amount is the state's average weekly wage as 
1384.2 	calculated under section 268.035, subdivision 23.
1384.3 	(d) (e) The state's maximum weekly benefit amount, computed in accordance with section 
1384.4 	268.035, subdivision 23, applies to a benefit account leaves established effective on or after 
1384.5 	the last Sunday in October. Once established, an applicant's weekly benefit amount is not 
1384.6 	affected by the last Sunday in October change in the state's maximum weekly benefit amount.
1384.7 	(e) (f) For an employee a covered individual receiving family or medical leave, a weekly 
1384.8 	benefit amount is prorated when:
1384.9 	(1) the employee covered individual works hours for wages;
1384.10 	(2) the employee covered individual uses paid sick leave, paid vacation leave, or other 
1384.11 	paid time off that is not considered a supplemental benefit payment as defined in section 
1384.12 	268B.01, subdivision 41; or
1384.13 	(3) leave is taken intermittently.
1384.14 		Subd. 4.Timing of payment. Except as otherwise provided for in this chapter, benefits 
1384.15 	must be paid weekly.
1384.16 		Subd. 5.Maximum length of benefits. (a) The total number of weeks that an applicant 
1384.17 	may take benefits in a single benefit year for a serious health condition is the lesser of 12 
1384.18 	weeks, or 12 weeks minus the number of weeks within the same benefit year that the 
1384.19 	applicant received benefits for bonding, safety leave, family care, or and qualifying exigency 
1384.20 	plus eight weeks.
1384.21 	(b) The total number of weeks that an applicant may take benefits in a single benefit 
1384.22 	year for bonding, safety leave, family care, or and qualifying exigency is the lesser of 12 
1384.23 	weeks, or 12 weeks minus the number of weeks within the same benefit year that the 
1384.24 	applicant received benefits for a serious health condition plus eight weeks.
1384.25 		Subd. 6.Minimum period for which benefits payable. Except for a claim for benefits 
1384.26 	for bonding leave, any claim for benefits must be based on a single qualifying event of at 
1384.27 	least seven calendar days. The minimum duration to receive benefits under this chapter is 
1384.28 	one work day in a work week.
1384.29 		Subd. 6a.Minimum increment of leave. Intermittent leave must be taken in increments 
1384.30 	consistent with the established policy of the employer to account for use of other forms of 
1384.31 	leave, so long as such employer's policy permits a minimum increment of at most one 
1384.32 	calendar day of intermittent leave. An applicant is not permitted to apply for payment for 
1384.33 	benefits associated with intermittent leave until the applicant has eight hours of accumulated 
1385.1 	leave time, unless more than 30 calendar days have lapsed since the initial taking of the 
1385.2 	leave.
1385.3 		Subd. 7.Right of appeal. (a) A determination or amended determination of benefit 
1385.4 	account is final unless an appeal is filed by the applicant within 60 calendar days after the 
1385.5 	sending of the determination or amended determination.
1385.6 	(b) Any applicant may appeal from a determination or amended determination of benefit 
1385.7 	account on the issue of whether services performed constitute employment, whether the 
1385.8 	employment is covered employment, and whether money paid constitutes wages.
1385.9 		Subd. 8.Limitations on applications and benefit accounts leaves. (a) An application 
1385.10 	for family or medical leave benefits is effective the Sunday of the calendar week that the 
1385.11 	application was filed. An application for benefits may be backdated one calendar week 
1385.12 	before the Sunday of the week the application was actually filed if the applicant requests 
1385.13 	the backdating within seven calendar days of the date the application is filed effective date 
1385.14 	of application. An application may be backdated only if the applicant was eligible for the 
1385.15 	benefit during the period of the backdating. If an individual attempted to file an application 
1385.16 	for benefits, but was prevented from filing an application by the department, the application 
1385.17 	is effective the Sunday of the calendar week the individual first attempted to file an 
1385.18 	application.
1385.19 	(b) If the applicant was unable to apply in a timely manner due to incapacitation or due 
1385.20 	to no fault of their own, the commissioner may backdate the claim beyond one calendar 
1385.21 	week to the effective date of leave. The commissioner may require the employee to prove 
1385.22 	the circumstances that prevented timely filing.

1385.23 	EFFECTIVE DATE. This section is effective November 1, 2025.

1385.24 	Sec. 15. Minnesota Statutes 2023 Supplement, section 268B.06, subdivision 2, is amended 
1385.25 	to read:
1385.26 		Subd. 2.Seven-day qualifying event. (a) The period for which an applicant is seeking 
1385.27 	benefits must be or have been based on a single event of at least seven calendar days' duration 
1385.28 	related to medical care related to pregnancy, family care, a qualifying exigency, safety leave, 
1385.29 	or the applicant's serious health condition. The days must be consecutive, unless the leave 
1385.30 	is intermittent. The seven-day qualifying event under this paragraph is a retroactively payable 
1385.31 	period, not an unpaid waiting period.
1385.32 	(b) Benefits related to bonding need not meet the seven-day qualifying event requirement.
1386.1 	(c) The commissioner shall use the rulemaking authority under section 268B.02, 
1386.2 	subdivision 3, to adopt rules regarding what serious health conditions and other events are 
1386.3 	prospectively presumed to constitute seven-day qualifying events under this chapter.

1386.4 	EFFECTIVE DATE. This section is effective November 1, 2025.

1386.5 	Sec. 16. Minnesota Statutes 2023 Supplement, section 268B.06, subdivision 3, is amended 
1386.6 	to read:
1386.7 		Subd. 3.Certification. (a) Certification for an applicant taking leave related to the 
1386.8 	applicant's serious health condition shall be sufficient if the certification states the date on 
1386.9 	which the serious health condition began, the probable duration of the condition, and the 
1386.10 	appropriate medical facts within the knowledge of the health care provider as required by 
1386.11 	the commissioner. If the applicant requests intermittent leave, the certification must include 
1386.12 	the health care provider's reasonable estimate of the frequency and duration and estimated 
1386.13 	treatment schedule, if applicable.
1386.14 	(b) Certification for an applicant taking leave to care for a family member with a serious 
1386.15 	health condition shall be sufficient if the certification states the date on which the serious 
1386.16 	health condition commenced, the probable duration of the condition, the appropriate medical 
1386.17 	facts within the knowledge of the health care provider as required by the commissioner, a 
1386.18 	statement that the family member requires care, and an estimate of the amount of time that 
1386.19 	the family member will require care.
1386.20 	(c) Certification for an applicant taking leave due to medical care related to pregnancy 
1386.21 	shall be sufficient if the certification states the applicant is experiencing medical care related 
1386.22 	to pregnancy and recovery period based on appropriate medical facts within the knowledge 
1386.23 	of the health care provider.
1386.24 	(d) Certification for an applicant taking bonding leave because of the birth of the 
1386.25 	applicant's child shall be sufficient if the certification includes either the child's birth 
1386.26 	certificate or a document issued by the health care provider of the child or the health care 
1386.27 	provider of the person who gave birth, stating the child's birth date or estimated due date.
1386.28 	(e) Certification for an applicant taking bonding leave because of the placement of a 
1386.29 	child with the applicant for adoption or foster care shall be sufficient if the applicant provides 
1386.30 	a document issued by the health care provider of the child, an adoption or foster care agency 
1386.31 	involved in the placement, or by other individuals as determined by the commissioner that 
1386.32 	confirms the placement and the date of placement. To the extent that the status of an applicant 
1386.33 	as an adoptive or foster parent changes while an application for benefits is pending, or while 
1387.1 	the covered individual is receiving benefits, the applicant must notify the department of 
1387.2 	such change in status in writing.
1387.3 	(f) Certification for an applicant taking leave because of a qualifying exigency shall be 
1387.4 	sufficient if the certification includes:
1387.5 	(1) a copy of the family member's active-duty orders;
1387.6 	(2) other documentation issued by the United States armed forces; or
1387.7 	(3) other documentation permitted by the commissioner.
1387.8 	(g) Certification for an applicant taking safety leave is sufficient if the certification 
1387.9 	includes a court record or documentation signed by an employee of a victim's services 
1387.10 	organization, an attorney, a police officer, or an antiviolence counselor a qualified person 
1387.11 	acting in the qualified person's professional capacity to declare a need for safety leave. The 
1387.12 	commissioner must not require disclosure of details relating to an applicant's or applicant's 
1387.13 	family member's domestic abuse, sexual assault, or stalking. The commissioner may adopt 
1387.14 	rules regarding safety leave.
1387.15 	(h) Certifications under paragraphs (a) to (e) (d) must be reviewed and signed by a health 
1387.16 	care provider with knowledge of the qualifying event associated with the leave.
1387.17 	(i) For a leave taken on an intermittent basis, based on a serious health condition of an 
1387.18 	applicant or applicant's family member, the certification under this subdivision must include 
1387.19 	an explanation of how such leave would be medically beneficial to the individual with the 
1387.20 	serious health condition.

1387.21 	EFFECTIVE DATE. This section is effective November 1, 2025.

1387.22 	Sec. 17. Minnesota Statutes 2023 Supplement, section 268B.06, subdivision 4, is amended 
1387.23 	to read:
1387.24 		Subd. 4.Not eligible. An applicant is ineligible for family or medical leave benefits for 
1387.25 	any portion of a typical workweek:
1387.26 	(1) that occurs before the effective date of a benefit account leave;
1387.27 	(2) that the applicant fails or refuses to provide information on an issue of ineligibility 
1387.28 	required under section 268B.07, subdivision 2; or
1387.29 	(3) for which the applicant worked for pay.;
1387.30 	(4) for which the applicant is incarcerated; or
1387.31 	(5) for which the applicant is receiving or has received unemployment insurance benefits.

1388.1 	EFFECTIVE DATE. This section is effective November 1, 2025.

1388.2 	Sec. 18. Minnesota Statutes 2023 Supplement, section 268B.06, subdivision 5, is amended 
1388.3 	to read:
1388.4 		Subd. 5.Vacation, sick leave, and paid time off, and disability insurance 
1388.5 	payments. (a) An employee may use vacation pay, sick pay, or paid time off pay, or disability 
1388.6 	insurance payments, in lieu of family or medical leave program benefits under this chapter, 
1388.7 	provided the employee is concurrently eligible and subject to the total amount of leave 
1388.8 	available under section 268B.04, subdivision 5. Subject to the limitations of section 268B.09, 
1388.9 	subdivision 1 subdivisions 6 and 7, an employee is entitled to the employment protections 
1388.10 	under section 268B.09 for those workdays during which this option is exercised. This 
1388.11 	subdivision applies to private plans under section 268B.10.
1388.12 	(b) An employer may offer supplemental benefit payments, as defined in section 268B.01, 
1388.13 	subdivision 41, to an employee taking leave under this chapter. The choice to receive 
1388.14 	supplemental benefits lies with the employee. Nothing in this section shall be construed as 
1388.15 	requiring an employee to receive or an employer to provide supplemental benefits payments. 
1388.16 	The total amount of paid benefits under this chapter and the supplemental benefits paid 
1388.17 	must not exceed the employee's usual salary.
1388.18 	(c) An employer may provide an employee with wage replacement during an absence. 
1388.19 	If the total amount of paid benefits under this chapter and the supplemental benefits paid 
1388.20 	exceed the employee's usual salary, the employee must refund the excess to either the 
1388.21 	employer or the paid leave division.
1388.22 	(d) If an employer provides wage replacement to an employee for weeks that should be 
1388.23 	paid by the division, the department may reimburse the employer directly for those weeks.

1388.24 	EFFECTIVE DATE. This section is effective November 1, 2025.

1388.25 	Sec. 19. Minnesota Statutes 2023 Supplement, section 268B.06, is amended by adding a 
1388.26 	subdivision to read:
1388.27 		Subd. 7a.Disability insurance offset. An employee may receive disability insurance 
1388.28 	payments in addition to family and medical leave benefits provided the employee is 
1388.29 	concurrently eligible for both benefits. Disability insurance benefits may be offset by family 
1388.30 	and medical leave benefits paid to the employee pursuant to the terms of a disability insurance 
1388.31 	policy.

1388.32 	EFFECTIVE DATE. This section is effective November 1, 2025.

1389.1 	Sec. 20. Minnesota Statutes 2023 Supplement, section 268B.07, subdivision 1, is amended 
1389.2 	to read:
1389.3 		Subdivision 1.Employer notification. (a) Upon a determination that an applicant is 
1389.4 	entitled to benefits, the commissioner must promptly send a notification to each current 
1389.5 	employer the employer or employers of the applicant from which the applicant is taking 
1389.6 	leave, if any, in accordance with paragraph (b).
1389.7 	(b) The notification under paragraph (a) must include, at a minimum:
1389.8 	(1) the name of the applicant;
1389.9 	(2) that the applicant has applied for and received benefits;
1389.10 	(3) the week the benefits commence;
1389.11 	(4) the weekly benefit amount payable; and
1389.12 	(5) the maximum duration of benefits.
1389.13 	(c) The commissioner may adopt rules regarding additional information that may be 
1389.14 	requested from an applicant and notifications provided to an employer as part of the 
1389.15 	application and eligibility determination process for benefits.

1389.16 	EFFECTIVE DATE. This section is effective November 1, 2025.

1389.17 	Sec. 21. Minnesota Statutes 2023 Supplement, section 268B.07, subdivision 2, is amended 
1389.18 	to read:
1389.19 		Subd. 2.Determination. (a) The commissioner must determine any issue of ineligibility 
1389.20 	raised by information required from an applicant and send to the applicant and any current 
1389.21 	base period employer from which the applicant applied to take leave, by mail or electronic 
1389.22 	transmission, a document titled a determination of eligibility or a determination of 
1389.23 	ineligibility, as is appropriate, within two weeks, unless the application is incomplete due 
1389.24 	to outstanding requests for information including clerical or other errors. Nothing prohibits 
1389.25 	the commissioner from requesting additional information or the applicant from supplementing 
1389.26 	their initial application before a determination of eligibility. The commissioner may extend 
1389.27 	the deadline for a determination under this subdivision due to extenuating circumstances.
1389.28 	(b) The commissioner shall set requirements for an applicant to respond to a request for 
1389.29 	information. If the required information is not provided in the timeline provided in paragraph 
1389.30 	(a), the application is denied.
1390.1 	(c) The commissioner shall prescribe requirements for when an incomplete application 
1390.2 	is closed. Applicants shall have the ability to reopen closed claims in a manner and form 
1390.3 	prescribed by the commissioner.
1390.4 	(b) (d) If an applicant obtained benefits through misrepresentation, the department is 
1390.5 	authorized to issue a determination of ineligibility within 12 months of the establishment 
1390.6 	of the benefit account effective date of leave.
1390.7 	(c) (e) If the department has filed an intervention in a worker's workers' compensation 
1390.8 	matter under section 176.361, the department is authorized to issue a determination of 
1390.9 	ineligibility within 48 months of the establishment of the benefit account effective date of 
1390.10 	leave.
1390.11 	(d) A determination of eligibility or determination of ineligibility is final unless an appeal 
1390.12 	is filed by the applicant within 60 calendar days after sending. (f) The determination must 
1390.13 	contain a prominent statement indicating the consequences of not appealing. Proceedings 
1390.14 	on the appeal are conducted in accordance with section 268B.08.
1390.15 	(e) (g) An issue of ineligibility required to be determined under this section includes 
1390.16 	any question regarding the denial or allowing of benefits under this chapter.

1390.17 	EFFECTIVE DATE. This section is effective November 1, 2025.

1390.18 	Sec. 22. Minnesota Statutes 2023 Supplement, section 268B.07, subdivision 3, is amended 
1390.19 	to read:
1390.20 		Subd. 3.Amended determination. Unless an appeal has been filed, the commissioner, 
1390.21 	on the commissioner's own motion, may reconsider a determination of eligibility or 
1390.22 	determination of ineligibility that has not become final and issue an amended determination. 
1390.23 	Any amended determination must be sent to the applicant and any employer in the current 
1390.24 	base period from which the applicant applied for leave by mail or electronic transmission. 
1390.25 	Any amended determination is final unless an appeal is filed by the applicant within 60 
1390.26 	calendar days after sending.

1390.27 	EFFECTIVE DATE. This section is effective November 1, 2025.

1390.28 	Sec. 23. [268B.081] APPEALS.
1390.29 		Subdivision 1.Appeal filing. (a) The commissioner may allow an appeal to be filed by 
1390.30 	electronic transmission. The commissioner may restrict the manner and format under which 
1390.31 	an appeal by electronic transmission may be filed. The notification of the determination or 
1390.32 	decision that is subject to appeal must clearly state the manner in which the determination 
1391.1 	or decision may be appealed. Subject to paragraph (b), this paragraph applies to requests 
1391.2 	for reconsideration under subdivision 6.
1391.3 	(b) Except as provided in paragraph (c), the commissioner must allow an applicant to 
1391.4 	file an appeal by mail even if an appeal by electronic transmission is allowed. To be 
1391.5 	considered an appeal, a written statement delivered or mailed to the department must identify:
1391.6 	(1) the determination or decision that the applicant disagrees with; and
1391.7 	(2) the reason the applicant disagrees with the determination or decision.
1391.8 	(c) If an agent files an appeal on behalf of an employer, the commissioner may require 
1391.9 	the appeal to be filed online. If the commissioner requires the appeal to be filed online, the 
1391.10 	appeal must be filed through the electronic address provided on the determination being 
1391.11 	appealed and use of another method of filing does not constitute an appeal. This paragraph 
1391.12 	does not apply to:
1391.13 	(1) an employee filing an appeal on behalf of an employer; or
1391.14 	(2) an attorney licensed to practice law who is directly representing the employer on 
1391.15 	appeal.
1391.16 	(d) All information requested by the department when the appeal is filed must be supplied 
1391.17 	or the communication does not constitute an appeal.
1391.18 	(e) If no appeal is filed by the deadlines listed in subdivision 2, the determination or 
1391.19 	decision is conclusive and final, unless the appealing party can demonstrate good cause for 
1391.20 	failing to file in a timely manner. For purposes of this paragraph, "good cause" is a reason 
1391.21 	that would have prevented a reasonable person acting with due diligence from filing in a 
1391.22 	timely manner. Unless otherwise specified, deadlines in this section may be extended up to 
1391.23 	60 days for good cause.
1391.24 		Subd. 2.Appealable issues and deadlines. (a) An applicant may appeal to the 
1391.25 	department:
1391.26 	(1) within 30 calendar days after a financial eligibility determination or amended financial 
1391.27 	eligibility determination sent by mail or electronic transmission by the department under 
1391.28 	section 268B.04 regarding:
1391.29 	(i) whether services performed constitute employment;
1391.30 	(ii) whether the employment is covered employment;
1391.31 	(iii) whether money paid constitutes wages; or
1392.1 	(iv) a denial resulting from the applicant's missing or incomplete documentation;
1392.2 	(2) within 30 calendar days after an eligibility determination sent by the department 
1392.3 	related to seasonal employment status under section 268B.06, subdivision 9;
1392.4 	(3) within 30 calendar days after an eligibility determination sent by the department 
1392.5 	under section 268B.07 regarding:
1392.6 	(i) financial eligibility, calculations of benefit amount, work schedule, and leave balance 
1392.7 	available; or
1392.8 	(ii) a denial resulting from missing or incomplete documentation;
1392.9 	(4) within 30 calendar days after the denial of a good cause demonstration under 
1392.10 	subdivision 1, paragraph (e). The deadline for appeals of denials of good cause demonstration 
1392.11 	may not be extended;
1392.12 	(5) within 30 calendar days after an applicant receives a decision from an insurer, 
1392.13 	approved private plan administrator, or employer under section 268B.10, subdivision 6, 
1392.14 	regarding the results of the administrative review under section 268B.10, subdivision 6, 
1392.15 	paragraph (b); and
1392.16 	(6) within 30 calendar days after a determination of overpayment penalty sent by the 
1392.17 	department under section 268B.185.
1392.18 	(b) A base period employer may appeal to the department:
1392.19 	(1) within 30 calendar days after a denial of an application for seasonal worker status 
1392.20 	under section 268B.01, subdivision 35;
1392.21 	(2) within 30 calendar days after a financial eligibility determination or amended financial 
1392.22 	eligibility determination sent by mail or electronic transmission by the department under 
1392.23 	section 268B.04 regarding:
1392.24 	(i) whether services performed constitute employment;
1392.25 	(ii) whether the employment is covered employment; or
1392.26 	(iii) whether money paid constitutes wages;
1392.27 	(3) within 30 calendar days after a denial of an application for substitution of a private 
1392.28 	plan is sent under section 268B.10;
1392.29 	(4) within 30 calendar days after a notice of termination of a private plan is sent by the 
1392.30 	department under section 268B.10, subdivision 16;
1393.1 	(5) within 30 calendar days after a notice of penalties is sent by the department under 
1393.2 	section 268B.10, subdivision 17;
1393.3 	(6) within 30 calendar days after the notice of the determination of the calculation of 
1393.4 	premiums has been sent by the department under section 268B.14, subdivision 1;
1393.5 	(7) within 30 calendar days after a determination of denial is sent by the department 
1393.6 	under section 268B.15, subdivision 7; and
1393.7 	(8) within 30 calendar days after a determination of penalty is sent by the department 
1393.8 	under section 268B.19.
1393.9 	(c) Notwithstanding any provision of this chapter, the commissioner or a hearing officer 
1393.10 	may, before a determination is made under this chapter, refer any issue of ineligibility, or 
1393.11 	any other issue under this chapter, directly for hearing in accordance with this section. The 
1393.12 	status of the issue is the same as if a determination had been made and an appeal filed.
1393.13 	(d) The computation of time provisions of sections 645.15 and 645.151 apply to this 
1393.14 	section.
1393.15 		Subd. 3.Notice of hearing. The notice of hearing must include materials that provide:
1393.16 	(1) a statement that the purpose of the hearing is to take sworn testimony and other 
1393.17 	evidence on the issues involved, that the hearing is the only procedure available under the 
1393.18 	law at which a party may present evidence, and that further appeals consist of a review of 
1393.19 	the evidence submitted at the hearing;
1393.20 	(2) a statement of the parties' right to represent themselves or to be represented by an 
1393.21 	attorney or other authorized representative;
1393.22 	(3) a brief description of the procedure to be followed to request a continuance of the 
1393.23 	hearing;
1393.24 	(4) a brief description of the procedure to be followed at the hearing, including the role 
1393.25 	of the hearing officer;
1393.26 	(5) a statement that the parties should arrange in advance for the participation of witnesses 
1393.27 	the parties need to support their position;
1393.28 	(6) a statement that a party may find out the name of the other party's attorney or other 
1393.29 	authorized representative, names of the witnesses that the other party intends to have testify 
1393.30 	at the hearing, and an explanation of the process for making the request;
1393.31 	(7) a statement that subpoenas may be available to compel the participation of witnesses 
1393.32 	or the production of documents and an explanation of the process for requesting a subpoena;
1394.1 	(8) a statement that documents contained in the department's records and documents 
1394.2 	submitted by the parties that will be introduced at the hearing as possible exhibits will be 
1394.3 	sent to the parties in advance of the hearing;
1394.4 	(9) a statement that even if the applicant already received benefits, the applicant should 
1394.5 	participate in the hearing, because if the applicant is held ineligible, the applicant is not 
1394.6 	eligible to receive further benefits and will have to pay back the benefits already received;
1394.7 	(10) a statement that the hearing officer will determine the facts based upon a 
1394.8 	preponderance of the evidence along with the statutory definition of "preponderance of the 
1394.9 	evidence"; and
1394.10 	(11) a statement that a party who fails to participate in the hearing will not be allowed 
1394.11 	a rehearing unless the party can show good cause for failing to participate, along with the 
1394.12 	statutory definition of "good cause."
1394.13 		Subd. 4.Hearing. (a) Upon a timely appeal to a determination having been filed or upon 
1394.14 	a referral for direct hearing, the department must set a time and date for a de novo  due 
1394.15 	process hearing and send notice to an applicant and an employer, by mail or electronic 
1394.16 	transmission, not less than ten calendar days before the date of the hearing.
1394.17 	(b) The commissioner may adopt rules on procedures for hearings. The rules need not 
1394.18 	conform to common law or statutory rules of evidence and other technical rules of procedure.
1394.19 	(c) The department has discretion regarding the method by which the hearing is 
1394.20 	conducted.
1394.21 	(d) The department may conduct a joint hearing with the unemployment insurance 
1394.22 	division if the substance of the appeal pertains to both programs.
1394.23 	(e) The department must assign a hearing officer to conduct a hearing and may transfer 
1394.24 	to another hearing officer any proceedings pending before another hearing officer.
1394.25 	(f) The department has discretion regarding the method by which the hearing is conducted. 
1394.26 	The hearing must be conducted by a hearing officer as an evidence-gathering inquiry, without 
1394.27 	regard to a burden of proof. The order of presentation of evidence is determined by the 
1394.28 	hearing officer.
1394.29 	(g) Each party may present and examine witnesses and offer their own documents or 
1394.30 	other exhibits. Parties have the right to examine witnesses, object to exhibits and testimony, 
1394.31 	and cross-examine the other party's witnesses. The hearing officer must assist all parties in 
1394.32 	the presentation of evidence. The hearing officer must rule upon evidentiary objections on 
1394.33 	the record. The hearing officer must permit rebuttal testimony. Parties have the right to 
1395.1 	make closing statements. Closing statements may include comments based upon the evidence 
1395.2 	and arguments of law. The hearing officer may limit repetitious testimony and arguments.
1395.3 	(h) The hearing officer must exercise control over the hearing procedure in a manner 
1395.4 	that protects the parties' rights to a fair hearing, including the sequestration of witnesses to 
1395.5 	avoid prejudice or collusion. The hearing officer must ensure that all relevant facts are 
1395.6 	clearly and fully developed. The hearing officer may obtain testimony and other evidence 
1395.7 	from department employees and any other person the hearing officer believes will assist in 
1395.8 	reaching a proper result.
1395.9 	(i) Before taking testimony, the hearing officer must inform the parties:
1395.10 	(1) that the purpose of the hearing is to take testimony and other evidence on the issues;
1395.11 	(2) that the hearing is the only opportunity available to the parties to present testimony 
1395.12 	and other evidence on the issues involved;
1395.13 	(3) of an explanation of how the hearing will be conducted, including the role and 
1395.14 	obligations of the hearing officer;
1395.15 	(4) that the parties have the right to request that the hearing be continued so that additional 
1395.16 	witnesses and documents can be presented, by subpoena if necessary;
1395.17 	(5) that the facts will be determined upon a preponderance of the evidence, along with 
1395.18 	the statutory definition of "preponderance of the evidence";
1395.19 	(6) of the statutory provision on burden of proof;
1395.20 	(7) that certain government agencies may have access to the information provided at the 
1395.21 	hearing if allowed by statute and that the information provided may be disclosed under a 
1395.22 	district court order; and
1395.23 	(8) that after the hearing is over, the hearing officer will issue a written decision, which 
1395.24 	will be sent to the parties by mail or electronic transmission.
1395.25 		Subd. 5.Decision. (a) After the conclusion of the hearing, upon the evidence obtained, 
1395.26 	the hearing officer must serve by mail or electronic transmission to all parties the decision, 
1395.27 	reasons for the decision, and written findings of fact. The hearing officer's decision is final 
1395.28 	unless a request for reconsideration is filed under subdivision 6.
1395.29 	(b) If the appellant fails to participate in the hearing, the hearing officer has the discretion 
1395.30 	to dismiss the appeal by summary decision. By failing to participate, the appellant is 
1395.31 	considered to have failed to exhaust available administrative remedies unless the appellant 
1395.32 	files a request for reconsideration under subdivision 6 and establishes good cause for failing 
1396.1 	to participate in the hearing. Submission of a written statement does not constitute 
1396.2 	participation. The appellant must participate personally or through an authorized 
1396.3 	representative.
1396.4 	(c) The hearing officer must issue a decision dismissing the appeal as untimely if the 
1396.5 	judge decides the appeal was not filed in accordance with the deadlines under subdivision 
1396.6 	2 after sending the determination. The hearing officer may dismiss the appeal by summary 
1396.7 	decision or may conduct a hearing to obtain evidence on the timeliness of the appeal.
1396.8 	(d) Decisions of a hearing officer are not precedential.
1396.9 		Subd. 6.Request for reconsideration. (a) Any party, or the commissioner, may, within 
1396.10 	30 calendar days after service of the hearing officer's decision, file a request for 
1396.11 	reconsideration asking the hearing officer to reconsider that decision. Upon the filing of a 
1396.12 	request for reconsideration, the division must send a notice by mail or electronic transmission 
1396.13 	to the appellant that a request for reconsideration has been filed. The notice must inform 
1396.14 	the appellant:
1396.15 	(1) that reconsideration is the procedure for the hearing officer to correct any factual or 
1396.16 	legal mistake in the decision or to order an additional hearing when appropriate;
1396.17 	(2) of the opportunity to provide comment on the request for reconsideration and the 
1396.18 	right to obtain a copy of any recorded testimony and exhibits offered or received into 
1396.19 	evidence at the hearing;
1396.20 	(3) that providing specific comments as to a perceived factual or legal mistake in the 
1396.21 	decision, or a perceived mistake in procedure during the hearing, will assist the hearing 
1396.22 	officer in deciding the request for reconsideration;
1396.23 	(4) of the right to obtain any comments and submissions provided by any other party 
1396.24 	regarding the request for reconsideration; and
1396.25 	(5) of the provisions of paragraph (c) regarding additional evidence.
1396.26 	This paragraph does not apply if paragraph (d) is applicable. Sending the notice does not 
1396.27 	mean the hearing officer has decided the request for reconsideration was timely filed.
1396.28 	(b) In deciding a request for reconsideration, the hearing officer must not consider 
1396.29 	evidence that was not submitted at the hearing, except for purposes of determining whether 
1396.30 	to order an additional hearing. The hearing officer must order an additional hearing if a 
1396.31 	party shows that evidence which was not submitted at the hearing:
1397.1 	(1) would likely change the outcome of the decision and there was good cause for not 
1397.2 	having previously submitted that evidence; or
1397.3 	(2) would show that the evidence that was submitted at the hearing was likely false and 
1397.4 	that the likely false evidence had an effect on the outcome of the decision.
1397.5 	For purposes of this paragraph, "good cause" is a reason that would have prevented a 
1397.6 	reasonable person acting with due diligence from submitting the evidence.
1397.7 	(c) If the appellant failed to participate in the hearing, the hearing officer must issue an 
1397.8 	order setting aside the decision and ordering an additional hearing if the party who failed 
1397.9 	to participate had good cause for failing to do so. The appellant who failed to participate in 
1397.10 	the hearing must be informed of the requirement to show good cause for failing to participate. 
1397.11 	If the hearing officer determines that good cause for failure to participate has not been 
1397.12 	shown, the judge must state that determination in the decision issued under paragraph (f). 
1397.13 	Submission of a written statement at the hearing does not constitute participation for purposes 
1397.14 	of this paragraph. "Good cause" for purposes of this paragraph is a reason that would have 
1397.15 	prevented a reasonable person acting with due diligence from participating in the hearing.
1397.16 	(d) A request for reconsideration must be decided by the hearing officer who issued the 
1397.17 	decision under subdivision 5 unless that hearing officer:
1397.18 	(1) is no longer employed by the department as a hearing officer;
1397.19 	(2) is on an extended or indefinite leave; or
1397.20 	(3) has been removed from the proceedings by the department.
1397.21 	(e) If a request for reconsideration is timely filed, the hearing officer must issue:
1397.22 	(1) a decision affirming the findings of fact, reasons for the decision, and a decision 
1397.23 	issued under subdivision 5;
1397.24 	(2) a decision modifying the findings of fact, reasons for the decision, and a decision 
1397.25 	issued under subdivision 5; or
1397.26 	(3) an order setting aside the findings of fact, reasons for the decision, and a decision 
1397.27 	issued under subdivision 5 and ordering an additional hearing.
1397.28 	(f) The hearing officer must issue a decision dismissing the request for reconsideration 
1397.29 	as untimely if the judge decides the request for reconsideration was not filed within 30 
1397.30 	calendar days after sending the decision under subdivision 5.
1397.31 	(g) The hearing officer must send to all parties by mail or electronic transmission the 
1397.32 	decision or order issued under this subdivision. A decision affirming or modifying the 
1398.1 	previously issued findings of fact, reasons for the decision, and a decision issued under 
1398.2 	subdivision 5, or a decision dismissing the request for reconsideration as untimely, is the 
1398.3 	final decision on the matter and is binding on the parties unless judicial review is sought 
1398.4 	under subdivision 9.
1398.5 		Subd. 7.Withdrawal of an appeal. (a) An appeal that is pending before a hearing officer 
1398.6 	may be withdrawn by the appealing party, or an authorized representative of that party, by 
1398.7 	filing a notice of withdrawal. A notice of withdrawal may be filed by mail or by electronic 
1398.8 	transmission.
1398.9 	(b) The appeal must, by order, be dismissed if a notice of withdrawal is filed, unless a 
1398.10 	hearing officer directs that further proceedings are required. An order of dismissal issued 
1398.11 	because of a notice of withdrawal is not subject to reconsideration or appeal.
1398.12 	(c) A party may file a new appeal after the order of dismissal, but the original deadline 
1398.13 	period for appeal begins from the date of issuance of the determination, and that period is 
1398.14 	not suspended or restarted by the notice of withdrawal and order of dismissal. The new 
1398.15 	appeal may only be filed by mail or facsimile transmission.
1398.16 	(d) For purposes of this subdivision, "appeals" includes a request for reconsideration 
1398.17 	filed under subdivision 6.
1398.18 		Subd. 8.Effect of decisions.  (a) If a hearing officer's decision allows benefits to an 
1398.19 	applicant, the benefits must be paid regardless of any request for reconsideration or petition 
1398.20 	to the Minnesota Court of Appeals.
1398.21 	(b) If a hearing officer's decision modifies or reverses a determination that allowed 
1398.22 	benefits to be paid, or on reconsideration the decision modifies or reverses a prior decision 
1398.23 	that allowed benefits to be paid, any benefits paid are an overpayment of those benefits. A 
1398.24 	decision that results in an overpayment of benefits must set out the amount of the 
1398.25 	overpayment and the requirement under section 268B.185, subdivision 1, that the benefits 
1398.26 	must be repaid.
1398.27 	(c) If a hearing officer, on reconsideration under subdivision 6, orders the taking of 
1398.28 	additional evidence, the hearing officer's prior decision must continue to be enforced until 
1398.29 	new findings of fact and decision are made by the hearing officer.
1398.30 		Subd. 9.Use of evidence; data privacy. (a) All testimony at a hearing must be recorded. 
1398.31 	A copy of recorded testimony and exhibits offered or received into evidence at the hearing 
1398.32 	must, upon request, be furnished to a party at no cost:
1398.33 	(1) during the time period for filing a request for reconsideration;
1399.1 	(2) while a request for reconsideration is pending;
1399.2 	(3) during the time for filing a petition under subdivision 12; or
1399.3 	(4) while a petition is pending.
1399.4 	Regardless of any law to the contrary, recorded testimony and other evidence may later be 
1399.5 	made available only under a district court order. A subpoena is not considered a district 
1399.6 	court order.
1399.7 	(b) Testimony obtained at a hearing must not be used or considered for any purpose, 
1399.8 	including impeachment, in any civil, administrative, or contractual proceeding, except by 
1399.9 	a local, state, or federal human rights agency with enforcement powers, unless the proceeding 
1399.10 	is initiated by the department. This paragraph does not apply to criminal proceedings.
1399.11 		Subd. 10.No collateral estoppel. No findings of fact, decision, or order issued by a 
1399.12 	hearing officer may be held conclusive or binding or used as evidence in any separate or 
1399.13 	subsequent action in any other forum, be it contractual, administrative, or judicial, except 
1399.14 	proceedings provided for under this chapter, regardless of whether the action involves the 
1399.15 	same or related parties or involves the same facts.
1399.16 		Subd. 11.Representation; fees. (a) In any proceeding under subdivision 4 or 6, an 
1399.17 	applicant or employer may be self-represented or represented by an attorney or an authorized 
1399.18 	representative. Except for services provided by a licensed attorney, no person may charge 
1399.19 	an applicant a fee of any kind for advising, assisting, or representing an applicant in a 
1399.20 	hearing, on reconsideration, or in a proceeding under subdivision 12.
1399.21 	(b) A hearing officer may refuse to allow a person to represent others in a hearing if that 
1399.22 	person acts in an unethical manner or repeatedly fails to follow the instructions of the hearing 
1399.23 	officer.
1399.24 	(c) An applicant may not be charged fees, costs, or disbursements of any kind in a 
1399.25 	proceeding before a hearing officer, the Minnesota Court of Appeals, or the Supreme Court 
1399.26 	of Minnesota.
1399.27 	(d) No attorney fees may be awarded, or costs or disbursements assessed, against the 
1399.28 	department as a result of any proceedings under this section.
1399.29 		Subd. 12.Appeal to court of appeals. (a) Any final determination on a request for 
1399.30 	reconsideration may be appealed by any party directly to the Minnesota Court of Appeals. 
1399.31 	The Minnesota Court of Appeals must, by writ of certiorari to the department, review the 
1399.32 	hearing officer's decision on reconsideration, provided a petition for the writ is filed with 
1399.33 	the court and a copy is served upon the hearing officer or the commissioner and any other 
1400.1 	party within 30 calendar days of the sending of the hearing officer's decision on 
1400.2 	reconsideration under subdivision 6. Three days are added to the 30-calendar-day period if 
1400.3 	the decision on reconsideration was mailed to the parties.
1400.4 	(b) Any employer petitioning for a writ of certiorari must pay to the court the required 
1400.5 	filing fee in accordance with the Rules of Civil Appellate Procedure. If the employer requests 
1400.6 	a written transcript of the testimony received at the hearing conducted under this section, 
1400.7 	the employer must pay to the department the cost of preparing the transcript. That money 
1400.8 	is credited to the administration account.
1400.9 	(c) Upon issuance by the Minnesota Court of Appeals of a writ of certiorari as a result 
1400.10 	of an applicant's petition, the department must furnish to the applicant at no cost a written 
1400.11 	transcript of any testimony received at the hearing conducted under this section and, if 
1400.12 	requested, a copy of all exhibits entered into evidence. No filing fee or cost bond is required 
1400.13 	of an applicant petitioning the Minnesota Court of Appeals for a writ of certiorari.
1400.14 	(d) The Minnesota Court of Appeals may affirm the decision of the hearing officer or 
1400.15 	remand the case for further proceedings, or it may reverse or modify the decision if the 
1400.16 	substantial rights of the petitioner may have been prejudiced because the findings, inferences, 
1400.17 	conclusion, or decision are:
1400.18 	(1) in violation of constitutional provisions;
1400.19 	(2) in excess of the statutory authority or jurisdiction of the department;
1400.20 	(3) made upon unlawful procedure;
1400.21 	(4) affected by other error of law;
1400.22 	(5) unsupported by substantial evidence in view of the hearing record as submitted; or
1400.23 	(6) arbitrary or capricious.
1400.24 	(e) The department is the primary responding party to any judicial action involving a 
1400.25 	hearing officer's decision. The department may be represented by an attorney licensed to 
1400.26 	practice law in Minnesota.
1400.27 		Subd. 13.Rescheduling and continuances. (a) Requests to reschedule a hearing must 
1400.28 	be addressed in a manner and form prescribed by the commissioner in advance of the 
1400.29 	regularly scheduled hearing date. A hearing must be rescheduled based on a party's good 
1400.30 	cause need for additional time to obtain necessary evidence or to obtain representation or 
1400.31 	adequately prepare, inability to participate due to illness, or other compelling reasons beyond 
1400.32 	the control of the party that prevent participation at the originally scheduled time. A hearing 
1401.1 	may be rescheduled only once by each party except in the case of an emergency. If requested, 
1401.2 	a written statement by mail or electronic transmission confirming the reasons for requesting 
1401.3 	that the case be rescheduled must be provided to the department.
1401.4 	(b) The ten-calendar-day notice requirement for hearings does not apply to rescheduled 
1401.5 	hearings.
1401.6 	(c) If a request for rescheduling is made because of the unavailability of a witness or 
1401.7 	the need to obtain documents, the hearing officer may direct that the hearing take place as 
1401.8 	scheduled. After obtaining the testimony and other evidence then available, the hearing 
1401.9 	officer must determine whether the hearing should be continued to obtain the testimony of 
1401.10 	the unavailable witness or the unavailable documents. The ten-calendar-day notice 
1401.11 	requirement for hearings does not apply to continued hearings. The hearing officer has the 
1401.12 	discretion to continue a hearing if the hearing officer determines that additional evidence 
1401.13 	is necessary for a proper result.
1401.14 		Subd. 14.Consolidation of parties, issues, and new issues. Upon the request of a party 
1401.15 	or on the hearing officer's motion, the hearing officer may consolidate for hearing issues 
1401.16 	involving one or more of the same parties. The hearing officer may take testimony and 
1401.17 	render a decision on issues not listed on the notice of hearing if each party is notified on 
1401.18 	the record, is advised of the right to object, and does not object. If a party objects, the hearing 
1401.19 	officer must:
1401.20 	(1) continue the hearing to allow the party to prepare for consideration of the issue; or
1401.21 	(2) direct the department to address the issue and send to the parties a determination by 
1401.22 	mail or electronic transmission.
1401.23 		Subd. 15.Interpreters. (a) The department must provide an interpreter, when necessary, 
1401.24 	upon the request of a party. The requesting party must notify the department at least five 
1401.25 	calendar days before the date of the hearing that an interpreter is required. The hearing 
1401.26 	officer must continue any hearing where a witness or party needs an interpreter to be 
1401.27 	understood or to understand the proceedings.
1401.28 	(b) A written statement in the five most common languages spoken in Minnesota must 
1401.29 	accompany all notices and written materials sent to the parties stating that the accompanying 
1401.30 	documents are important and that if the reader does not understand the documents the reader 
1401.31 	should seek immediate assistance.
1401.32 		Subd. 16.Exhibits in hearings. (a) Upon receipt of the notice of hearing, and no later 
1401.33 	than five calendar days before the scheduled date of hearing, parties may submit to the 
1402.1 	department, by electronic transmission or mail, any documents a party would like to offer 
1402.2 	as exhibits at the hearing. Copies of the documents submitted by the parties, as well as all 
1402.3 	documents that are contained in the department's records that will be introduced as exhibits, 
1402.4 	must be mailed, or sent by electronic transmission, to all parties or the parties' authorized 
1402.5 	representatives by the department in advance of the hearing.
1402.6 	(b) If a party requests to introduce additional documents during the hearing, and the 
1402.7 	hearing officer rules that the documents should be considered, the requesting party must 
1402.8 	provide copies of the documents to the hearing officer and the other party. The record must 
1402.9 	be left open for sufficient time for the submission of a written response to the documents. 
1402.10 	The response may be sent by mail or electronic transmission. The hearing officer may, when 
1402.11 	appropriate, reconvene the hearing to obtain a response or permit cross-examination regarding 
1402.12 	the late filed exhibits.
1402.13 		Subd. 17.Access to data. The parties to a hearing must be allowed reasonable access 
1402.14 	to department data necessary to represent themselves in the hearing. Access to data must 
1402.15 	be consistent with all laws relating to data practices. The data must be provided by the 
1402.16 	department at no cost and mailed or sent by electronic transmission to the party or the party's 
1402.17 	authorized representative.
1402.18 		Subd. 18.Subpoenas and discovery. (a) The hearing officer may issue subpoenas to 
1402.19 	compel the attendance of witnesses, the production of documents, or other exhibits upon a 
1402.20 	showing of necessity by the requesting party. Requests for issuance of subpoenas must be 
1402.21 	made to the department, by electronic transmission or mail, sufficiently in advance of the 
1402.22 	scheduled hearing to allow for the service of the subpoenas. The requesting party must 
1402.23 	identify the person or documents to be subpoenaed and the subject matter and necessity of 
1402.24 	the evidence requested. A request for a subpoena may be denied if the testimony or 
1402.25 	documents sought would be irrelevant, immaterial, or unduly cumulative or repetitious.
1402.26 	(b) If a request for a subpoena has been denied, the hearing officer must reconsider the 
1402.27 	request during the hearing and determine whether the request was properly denied. If the 
1402.28 	hearing officer determines that the request for a subpoena was not properly denied, the 
1402.29 	hearing officer must continue the hearing to allow for service of and compliance with the 
1402.30 	subpoena. The hearing officer may issue a subpoena even if a party has not requested one.
1402.31 	(c) Within five calendar days following request by another party, each party must disclose 
1402.32 	the name of the party's attorney or other authorized representative and the names of all 
1402.33 	witnesses the party intends to have testify at the hearing. The request and the response may 
1402.34 	be made by mail or by electronic transmission. Any witnesses unknown at the time of the 
1403.1 	request must be disclosed as soon as they become known. If a party fails to comply with 
1403.2 	the disclosure requirements, the hearing officer may, upon notice to the parties, continue 
1403.3 	the hearing.
1403.4 		Subd. 19.Disqualification of hearing officer. (a) A hearing officer must request to be 
1403.5 	removed from any case by the department where the hearing officer believes that presiding 
1403.6 	over the case would create the appearance of impropriety. The department must remove a 
1403.7 	hearing officer from any case if the hearing officer has a financial or personal interest in 
1403.8 	the outcome.
1403.9 	(b) Any party may request the removal of a hearing officer by submitting to the 
1403.10 	department, by mail or electronic transmission, a written statement of the basis for removal. 
1403.11 	The department must decide the fitness of the hearing officer to hear the particular case.
1403.12 		Subd. 20.Public access to hearings and recording of hearings. (a) Hearings are not 
1403.13 	public. Only parties, the parties' authorized representatives and witnesses, and authorized 
1403.14 	department personnel are permitted to participate in or listen to hearings. If any other person 
1403.15 	wishes to listen to or sit in on a hearing, the parties must provide their consent as required 
1403.16 	by section 13.05, subdivision 4.
1403.17 	(b) The hearing officer must make a recording of all testimony that is the official record. 
1403.18 	No other voice recordings or pictures may be made of any party, representative, or witness 
1403.19 	during the hearing.
1403.20 		Subd. 21.Administration of oath or affirmation. A hearing officer has authority to 
1403.21 	administer oaths and affirmations. Before testifying, every witness is required to declare to 
1403.22 	testify truthfully, by oath or affirmation under sections 358.07 and 358.08.
1403.23 		Subd. 22.Receipt of evidence. Only evidence received into the record of any hearing 
1403.24 	may be considered by the hearing officer. The parties may stipulate to the existence of any 
1403.25 	fact or the authenticity of any exhibit. All competent, relevant, and material evidence, 
1403.26 	including records and documents in the possession of the parties that are offered into 
1403.27 	evidence, are part of the hearing record. A hearing officer may receive any evidence that 
1403.28 	possesses probative value, including hearsay, if it is the type of evidence on which reasonable, 
1403.29 	prudent persons are accustomed to rely in the conduct of their serious affairs. A hearing 
1403.30 	officer may exclude any evidence that is irrelevant, immaterial, unreliable, or unduly 
1403.31 	repetitious. A hearing officer is not bound by statutory and common law rules of evidence. 
1403.32 	The rules of evidence may be used as a guide in determining the quality of evidence offered. 
1403.33 	A hearing officer may draw adverse inferences from the refusal of a party or witness to 
1404.1 	testify on the basis of any privilege. A hearing officer may only use reliable, probative, and 
1404.2 	substantial evidence as a basis for decision.
1404.3 		Subd. 23.Official notice. A hearing officer may take official notice of matters of common 
1404.4 	knowledge and may take notice of facts within the hearing officer's specialized knowledge 
1404.5 	in the field of paid leave. The hearing officer must state on the record any fact that is 
1404.6 	judicially noticed. The hearing officer must give the parties an opportunity to contest the 
1404.7 	noticed facts.

1404.8 	EFFECTIVE DATE. This section is effective November 1, 2025.

1404.9 	Sec. 24. Minnesota Statutes 2023 Supplement, section 268B.085, subdivision 3, is amended 
1404.10 	to read:
1404.11 		Subd. 3.Intermittent schedule. (a) Leave under this chapter, based on a serious health 
1404.12 	condition, may be taken intermittently if such leave is reasonable and appropriate to the 
1404.13 	needs of the individual with the serious health condition. For all other leaves under this 
1404.14 	chapter, leave may be taken intermittently. Intermittent leave is leave taken in separate 
1404.15 	blocks of time due to a single, seven-day qualifying event.
1404.16 	(b) For an applicant who takes leave on an intermittent schedule, the weekly benefit 
1404.17 	amount shall be prorated.
1404.18 	(c) An employee requesting leave taken intermittently shall provide the employer with 
1404.19 	a schedule of needed workdays off as soon as practicable and must make a reasonable effort 
1404.20 	to schedule the intermittent leave so as not to disrupt unduly the operations of the employer. 
1404.21 	If this cannot be done to the satisfaction of both employer and employee, the employer 
1404.22 	cannot require the employee to change their leave schedule in order to accommodate the 
1404.23 	employer.
1404.24 	(d) Notwithstanding the allowance for intermittent leave under this subdivision, an 
1404.25 	employer shall not be required under this chapter to provide, but may elect to provide, more 
1404.26 	than 480 hours of intermittent leave in any 12-month period. If an employer limits hours of 
1404.27 	intermittent leave pursuant to this paragraph, an employee is entitled to take their remaining 
1404.28 	leave continuously, subject to the total amount of leave available under section 268B.04, 
1404.29 	subdivision 5. An employer may run intermittent leave available under the Family and 
1404.30 	Medical Leave Act, United States Code, title 29, sections 2601 to 2654, as amended, 
1404.31 	concurrent with an employee's entitlement to intermittent leave under this chapter.

1405.1 	Sec. 25. Minnesota Statutes 2023 Supplement, section 268B.09, subdivision 1, is amended 
1405.2 	to read:
1405.3 		Subdivision 1.Retaliation prohibited. (a) An employer must not discharge, discipline, 
1405.4 	penalize, interfere with, threaten, restrain, coerce, or otherwise retaliate or discriminate 
1405.5 	against an employee for requesting or obtaining benefits or leave, or for exercising any 
1405.6 	other right under this chapter.
1405.7 	(b) For the purposes of this section, the term "leave" includes but is not limited to:
1405.8 	(1) leave taken for any day for which the commissioner has determined that the employee 
1405.9 	has been deemed is eligible for benefits or leave under this chapter; or
1405.10 	(2) any day for which the employee meets the eligibility criteria under section 268B.06, 
1405.11 	subdivision 1, clause paragraph (a), clauses (2) or and (3), and or the employee has applied 
1405.12 	for benefits in good faith under this chapter. For the purposes of this subdivision, "good 
1405.13 	faith" is defined as anything that is not knowingly false or in reckless disregard of the truth.
1405.14 	(c) In addition to the remedies provided in subdivision 8, the commissioner of labor and 
1405.15 	industry may also issue a penalty to the employer of not less than $1,000 and not more than 
1405.16 	$10,000 per violation, payable to the employee aggrieved. In determining the amount of 
1405.17 	the penalty under this subdivision, the appropriateness of the penalty to the size of the 
1405.18 	employer's business and the gravity of the violation shall be considered.

1405.19 	EFFECTIVE DATE. This section is effective November 1, 2025.

1405.20 	Sec. 26. Minnesota Statutes 2023 Supplement, section 268B.09, subdivision 6, is amended 
1405.21 	to read:
1405.22 		Subd. 6.Employee right to reinstatement. (a) On return from leave under this chapter, 
1405.23 	an employee is entitled to be returned to the same position the employee held when leave 
1405.24 	commenced or to an equivalent position with equivalent benefits, pay, and other terms and 
1405.25 	conditions of employment. Except as provided under subdivision 7, an employee is entitled 
1405.26 	to reinstatement even if the employee has been replaced or the employee's position has been 
1405.27 	restructured to accommodate the employee's absence.
1405.28 	(b)(1) An equivalent position is one that is virtually identical to the employee's former 
1405.29 	position in terms of pay, benefits, and working conditions, including privileges, prerequisites, 
1405.30 	and status. It must involve the same or substantially similar duties and responsibilities, 
1405.31 	which must entail substantially equivalent skill, effort, responsibility, and authority.
1406.1 	(2) If an employee is no longer qualified for the position because of the employee's 
1406.2 	inability to attend a necessary course, renew a license, fly a minimum number of hours, or 
1406.3 	similar condition, as a result of the leave, the employee must be given a reasonable 
1406.4 	opportunity to fulfill those conditions upon return from leave.
1406.5 	(c)(1) An employee is entitled to any unconditional pay increases which may have 
1406.6 	occurred during the leave period, such as cost of living increases. Pay increases conditioned 
1406.7 	upon seniority, length of service, or work performed must be granted in accordance with 
1406.8 	the employer's policy or, practice, or contract with respect to other employees on an 
1406.9 	equivalent leave status for a reason that does not qualify for leave under this chapter. An 
1406.10 	employee is entitled to be restored to a position with the same or equivalent pay premiums, 
1406.11 	such as a shift differential. If an employee departed from a position averaging ten hours of 
1406.12 	overtime, and corresponding overtime pay, each week an for which they receive overtime 
1406.13 	pay, the employee is ordinarily entitled to such a position with overtime pay and overtime 
1406.14 	hours on return from leave under this chapter. If a pay premium, such as a shift differential, 
1406.15 	or overtime has been decreased or eliminated for other similarly classified employees, an 
1406.16 	employee is not entitled to restoration of the pay premium or overtime.
1406.17 	(2) Equivalent pay includes any bonus or payment, whether it is discretionary or 
1406.18 	nondiscretionary, made to employees consistent with clause (1). If a bonus or other payment 
1406.19 	is based on the achievement of a specified goal such as hours worked, products sold, or 
1406.20 	perfect attendance, and the employee has not met the goal due to leave under this chapter, 
1406.21 	the payment may be denied, unless otherwise paid to employees on an equivalent leave 
1406.22 	status for a reason that does not qualify for leave under this chapter.
1406.23 	(d) Benefits under this section include all benefits provided or made available to 
1406.24 	employees by an employer, including group life insurance, health insurance, disability 
1406.25 	insurance, sick leave, annual leave, educational benefits, and pensions, regardless of whether 
1406.26 	benefits are provided by a practice or written policy of an employer through an employee 
1406.27 	benefit plan as defined in section 3(3) of United States Code, title 29, section 1002(3).
1406.28 	(1) At the end of an employee's leave under this chapter, benefits must be resumed in 
1406.29 	the same manner and at the same levels as provided when the leave began, and subject to 
1406.30 	any changes in benefit levels that may have taken place during the period of leave affecting 
1406.31 	the entire workforce, unless otherwise elected by the employee. Upon return from a leave 
1406.32 	under this chapter, an employee must not be required to requalify for any benefits the 
1406.33 	employee enjoyed before leave began, including family or dependent coverages.
1407.1 	(2) An employee may, but is not entitled to, accrue any additional benefits or seniority 
1407.2 	during a leave under this chapter. Benefits accrued at the time leave began must be available 
1407.3 	to an employee upon return from leave.
1407.4 	(3) With respect to pension and other retirement plans, leave under this chapter must 
1407.5 	not be treated as or counted toward a break in service for purposes of vesting and eligibility 
1407.6 	to participate. If the plan requires an employee to be employed on a specific date in order 
1407.7 	to be credited with a year of service for vesting, contributions, or participation purposes, 
1407.8 	an employee on leave under this chapter must be treated as employed on that date. Periods 
1407.9 	of leave under this chapter need not be treated as credited service for purposes of benefit 
1407.10 	accrual, vesting, and eligibility to participate.
1407.11 	(4) Employees on leave under this chapter must be treated as if they continued to work 
1407.12 	for purposes of changes to benefit plans. Employees on leave under this chapter are entitled 
1407.13 	to changes in benefit plans, except those which may be dependent upon seniority or accrual 
1407.14 	during the leave period, immediately upon return from leave or to the same extent they 
1407.15 	would have qualified if no leave had been taken.
1407.16 	(e) An equivalent position must have substantially similar duties, conditions, 
1407.17 	responsibilities, privileges, and status as the employee's original position.
1407.18 	(1) The employee must be reinstated to the same or a geographically proximate worksite 
1407.19 	from where the employee had previously been employed. If the employee's original worksite 
1407.20 	has been closed, the employee is entitled to the same rights as if the employee had not been 
1407.21 	on leave when the worksite closed.
1407.22 	(2) The employee is ordinarily entitled to return to the same shift or the same or an 
1407.23 	equivalent work schedule.
1407.24 	(3) The employee must have the same or an equivalent opportunity for bonuses, 
1407.25 	profit-sharing, and other similar discretionary and nondiscretionary payments, excluding 
1407.26 	any bonus paid to another employee or employees for covering the work of the employee 
1407.27 	while the employee was on leave.
1407.28 	(4) This chapter does not prohibit an employer from accommodating an employee's 
1407.29 	request to be restored to a different shift, schedule, or position which better suits the 
1407.30 	employee's personal needs on return from leave, or to offer a promotion to a better position. 
1407.31 	However, an employee must not be induced by the employer to accept a different position 
1407.32 	against the employee's wishes.
1408.1 	(f) The requirement that an employee be restored to the same or equivalent job with the 
1408.2 	same or equivalent pay, benefits, and terms and conditions of employment does not extend 
1408.3 	to de minimis, intangible, or unmeasurable aspects of the job.
1408.4 	(g) Nothing in this section shall be deemed to affect the Americans with Disabilities 
1408.5 	Act, United States Code, title 42, chapter 126.
1408.6 	(h) Ninety calendar days from the date of hire, an employee has a right and is entitled 
1408.7 	to reinstatement as provided under this subdivision for any day for which:
1408.8 	(1) the employee has been deemed eligible for benefits under this chapter; or
1408.9 	(2) the employee meets the eligibility criteria under section 268B.06, subdivision 1, 
1408.10 	clause paragraph (a), clauses (2) or and (3), and or the employee has applied for benefits in 
1408.11 	good faith under this chapter. For the purposes of this paragraph, good faith is defined as 
1408.12 	anything that is not knowingly false or in reckless disregard of the truth.
1408.13 	(i) This subdivision and subdivision 7 may be waived for employees who are working 
1408.14 	in the construction industry under a bona fide collective bargaining agreement with a 
1408.15 	construction trade union that maintains a referral-to-work procedure for employees to obtain 
1408.16 	employment with multiple signatory employers, but only if the waiver is set forth in clear 
1408.17 	and unambiguous terms in the collective bargaining agreement and explicitly cites this 
1408.18 	subdivision and subdivision 7.

1408.19 	EFFECTIVE DATE. This section is effective January 1, 2026.

1408.20 	Sec. 27. Minnesota Statutes 2023 Supplement, section 268B.09, subdivision 7, is amended 
1408.21 	to read:
1408.22 		Subd. 7.Limitations on an employee's right to reinstatement. An employee has no 
1408.23 	greater right to reinstatement or to other benefits and conditions of employment than if the 
1408.24 	employee had been continuously employed during the period of leave under this chapter. 
1408.25 	An employer must be able to show that an employee would not otherwise have been 
1408.26 	employed at the time reinstatement is requested in order to deny restoration to employment.
1408.27 	(1) If an employee is laid off during the course of taking a leave under this chapter and 
1408.28 	employment is terminated, the employer's responsibility to continue the leave, maintain 
1408.29 	group health plan benefits, and restore the employee cease at the time the employee is laid 
1408.30 	off, provided the employer has no continuing obligations under a collective bargaining 
1408.31 	agreement or otherwise. An employer has the burden of proving that an employee would 
1408.32 	have been laid off during the period of leave under this chapter and, therefore, would not 
1409.1 	be entitled to restoration to a job slated for layoff when the employee's original position 
1409.2 	would not meet the requirements of an equivalent position.
1409.3 	(2) If a shift has been eliminated or overtime has been decreased, an employee would 
1409.4 	not be entitled to return to work that shift or the original overtime hours upon restoration. 
1409.5 	However, if a position on, for example, a night shift has been filled by another employee, 
1409.6 	the employee is entitled to return to the same shift on which employed before taking leave 
1409.7 	under this chapter.
1409.8 	(3) If an employee was hired for a specific term or only to perform work on a discrete 
1409.9 	project, the employer has no obligation to maintain group health plan benefits and restore 
1409.10 	the employee if the employment term or project is over and the employer would not otherwise 
1409.11 	have continued to employ the employee.

1409.12 	EFFECTIVE DATE. This section is effective January 1, 2026.

1409.13 	Sec. 28. Minnesota Statutes 2023 Supplement, section 268B.10, subdivision 1, is amended 
1409.14 	to read:
1409.15 		Subdivision 1.Application for substitution. (a) Employers may apply to the 
1409.16 	commissioner for approval to meet their obligations under this chapter through the 
1409.17 	substitution of a private plan that provides paid family, paid medical, or paid family and 
1409.18 	medical benefits. In order to be approved as meeting an employer's obligations under this 
1409.19 	chapter, a private plan must confer all of the same rights, protections, and benefits provided 
1409.20 	to employees under this chapter, including but not limited to benefits under section 268B.04
1409.21 	and employment protections under section 268B.09. Employers may apply for approval of 
1409.22 	private plans that exceed the benefits provided to employees under this chapter. An employee 
1409.23 	covered by a private plan under this section retains all applicable rights and remedies under 
1409.24 	section 268B.09.
1409.25 	(b) An insurer must file every form, application, rider, endorsement, and rate used in 
1409.26 	connection with an insurance product that provides coverage for paid family and medical 
1409.27 	leave benefits as described in this section with the commissioner at least 60 days prior to 
1409.28 	the form or rate's effective date. The commissioner may extend this filing review period for 
1409.29 	an additional period not to exceed 60 days. If any form, rate, or amendment is not disapproved 
1409.30 	by the commissioner within the filing review period, the insurer may implement it. If the 
1409.31 	commissioner notifies an insurer that has filed any form or rate that the form or rate does 
1409.32 	not comply with this section, section 62A.02, or chapter 72A, it is unlawful for the insurer 
1409.33 	to issue or use the form or rate. In the notice, the commissioner shall specify the reasons 
1409.34 	for disapproval.
1410.1 	(c) Any insurer authorized to write accident and sickness insurance in Minnesota has 
1410.2 	the power to issue an insurance product that provides coverage for paid family and medical 
1410.3 	leave benefits as described in this section.

1410.4 	EFFECTIVE DATE. This section is effective July 1, 2025.

1410.5 	Sec. 29. Minnesota Statutes 2023 Supplement, section 268B.10, subdivision 2, is amended 
1410.6 	to read:
1410.7 		Subd. 2.Private plan requirements; medical benefit program. The commissioner, 
1410.8 	in consultation with the commissioner of commerce, must approve an application for private 
1410.9 	provision of the medical benefit program if the commissioner determines:
1410.10 	(1) all of the employees of the employer are to be covered under the provisions of the 
1410.11 	employer plan;
1410.12 	(2) eligibility requirements for benefits and leave are no more restrictive than as provided 
1410.13 	under this chapter;
1410.14 	(3) the weekly benefits payable under the private plan for any week are at least equal to 
1410.15 	the weekly benefit amount payable under this chapter;
1410.16 	(4) the total number of weeks for which benefits are payable under the private plan is 
1410.17 	at least equal to the total number of weeks for which benefits would have been payable 
1410.18 	under this chapter;
1410.19 	(5) no greater amount is required to be paid by employees toward the cost of benefits 
1410.20 	under the employer plan than by this chapter;
1410.21 	(6) wage replacement benefits are stated in the plan separately and distinctly from other 
1410.22 	benefits;
1410.23 	(7) the private plan will provide benefits and leave for any serious health condition or 
1410.24 	medical care related to pregnancy for which benefits are payable, and leave provided, under 
1410.25 	this chapter;
1410.26 	(8) the private plan will impose no additional condition or restriction on the use of 
1410.27 	medical benefits beyond those explicitly authorized by this chapter or regulations 
1410.28 	promulgated pursuant to this chapter;
1410.29 	(9) the private plan will allow any employee covered under the private plan who is 
1410.30 	eligible to receive medical benefits under this chapter to receive medical benefits under the 
1410.31 	employer plan; and
1411.1 	(10) coverage will continue under the private plan while an employee remains employed 
1411.2 	by the employer. For former employees, coverage for the purposes of benefits applies until 
1411.3 	the individual is hired by a new employer or 26 weeks pass, whichever occurs first; and
1411.4 	(11) if an application for leave is filed by a former employee to a private plan, the plan 
1411.5 	pays benefits for the totality of the leave. Private plans may not cut off eligibility for a 
1411.6 	former employee during the course of an approved leave.

1411.7 	EFFECTIVE DATE. This section is effective July 1, 2025.

1411.8 	Sec. 30. Minnesota Statutes 2023 Supplement, section 268B.10, subdivision 3, is amended 
1411.9 	to read:
1411.10 		Subd. 3.Private plan requirements; family benefit program. The commissioner, in 
1411.11 	consultation with the commissioner of commerce, must approve an application for private 
1411.12 	provision of the family benefit program if the commissioner determines:
1411.13 	(1) all of the employees of the employer are to be covered under the provisions of the 
1411.14 	employer plan;
1411.15 	(2) eligibility requirements for benefits and leave are no more restrictive than as provided 
1411.16 	under this chapter;
1411.17 	(3) the weekly benefits payable under the private plan for any week are at least equal to 
1411.18 	the weekly benefit amount payable under this chapter;
1411.19 	(4) the total number of weeks for which benefits are payable under the private plan is 
1411.20 	at least equal to the total number of weeks for which benefits would have been payable 
1411.21 	under this chapter;
1411.22 	(5) no greater amount is required to be paid by employees toward the cost of benefits 
1411.23 	under the employer plan than by this chapter;
1411.24 	(6) wage replacement benefits are stated in the plan separately and distinctly from other 
1411.25 	benefits;
1411.26 	(7) the private plan will provide benefits and leave for any care for a family member 
1411.27 	with a serious health condition, bonding with a child, qualifying exigency, or safety leave 
1411.28 	event for which benefits are payable, and leave provided, under this chapter;
1411.29 	(8) the private plan will impose no additional condition or restriction on the use of family 
1411.30 	benefits beyond those explicitly authorized by this chapter or regulations promulgated 
1411.31 	pursuant to this chapter;
1412.1 	(9) the private plan will allow any employee covered under the private plan who is 
1412.2 	eligible to receive family benefits under this chapter to receive family benefits under the 
1412.3 	employer plan; and
1412.4 	(10) coverage will continue under the private plan while an employee remains employed 
1412.5 	by the employer. For former employees, coverage for the purposes of benefits applies until 
1412.6 	the individual is hired by a new employer or 26 weeks pass, whichever occurs first; and
1412.7 	(11) if an application for leave is filed by a former employee to a private plan, the private 
1412.8 	plan is required to pay benefits for the totality of the leave. Private plans must not discontinue 
1412.9 	eligibility for a former employee during the course of an approved leave.

1412.10 	EFFECTIVE DATE. This section is effective July 1, 2025.

1412.11 	Sec. 31. Minnesota Statutes 2023 Supplement, section 268B.10, subdivision 6, is amended 
1412.12 	to read:
1412.13 		Subd. 6.Private plan requirements; weekly benefit determination. (a) For purposes 
1412.14 	of determining the family and medical benefit amount and duration under a private plan, 
1412.15 	the weekly benefit amount and duration shall be based on the employee's typical work week 
1412.16 	and wages earned with the employer at the time of an application for benefits. If an employer 
1412.17 	does not have complete base period wage detail information, the employer may accept an 
1412.18 	employee's certification of wage credits, based on the employee's records.
1412.19 	(b) In the event that an employee's request for benefits is denied, in whole or in part, or 
1412.20 	the amount of the benefits is contested, the employee has the right to request administrative 
1412.21 	review of a decision by the private plan within 30 calendar days. If the private plan maintains 
1412.22 	the denial, the employee may appeal to the department as permitted in section 268B.08.

1412.23 	EFFECTIVE DATE. This section is effective July 1, 2025.

1412.24 	Sec. 32. Minnesota Statutes 2023 Supplement, section 268B.10, is amended by adding a 
1412.25 	subdivision to read:
1412.26 		Subd. 9a.Plan changes during approved leave. If an employee is using approved leave 
1412.27 	under this chapter when their employer changes from the state plan to a private plan, from 
1412.28 	a private plan to the state plan, or from one private plan to another private plan, the plan 
1412.29 	under which the employee was covered when their benefits were approved is required to 
1412.30 	continue paying benefits for continuous, intermittent, and reduced schedule leave through 
1412.31 	the duration previously approved. If the employee requests an extension of their original 
1413.1 	leave, or recertification is required, the employee may reapply for benefits with their new 
1413.2 	plan.

1413.3 	EFFECTIVE DATE. This section is effective July 1, 2025.

1413.4 	Sec. 33. Minnesota Statutes 2023 Supplement, section 268B.10, subdivision 12, is amended 
1413.5 	to read:
1413.6 		Subd. 12.Employees no longer covered. (a) An employee is no longer covered by an 
1413.7 	approved private plan if a leave under this chapter occurs after the employment relationship 
1413.8 	with the private plan employer ends, or if the commissioner revokes the approval of the 
1413.9 	private plan.
1413.10 	(b) An employee no longer covered by an approved private plan is, if otherwise eligible, 
1413.11 	immediately entitled to benefits under this chapter to the same extent as though there had 
1413.12 	been no approval of the private plan.

1413.13 	EFFECTIVE DATE. This section is effective July 1, 2025.

1413.14 	Sec. 34. Minnesota Statutes 2023 Supplement, section 268B.10, is amended by adding a 
1413.15 	subdivision to read:
1413.16 		Subd. 12a.Former employees and benefit applications. Covered individuals that have 
1413.17 	been separated from an employer with a private plan for less than 26 weeks shall file 
1413.18 	applications for benefits as follows:
1413.19 	(1) if the former employee remains unemployed on the date that an application for 
1413.20 	benefits is filed, the former employee shall submit an application for benefits with the private 
1413.21 	plan of their former employer; and
1413.22 	(2) if the former employee has become employed by a different employer at the time 
1413.23 	that an application for benefits is filed, the former employee shall submit an application for 
1413.24 	benefits based on the new employer's coverage. If the new employer is covered under the 
1413.25 	state plan, the former employee shall submit the application to the state. If the new employer 
1413.26 	has an approved private plan, the covered individual shall submit the application for benefits 
1413.27 	to the private plan in accordance with the requirements established by their employer.

1413.28 	EFFECTIVE DATE. This section is effective July 1, 2025.

1414.1 	Sec. 35. Minnesota Statutes 2023 Supplement, section 268B.10, subdivision 16, is amended 
1414.2 	to read:
1414.3 		Subd. 16.Revocation of approval by commissioner. (a) The commissioner may 
1414.4 	terminate any private plan if the commissioner determines the employer or agents of the 
1414.5 	employer:
1414.6 	(1) failed to pay benefits;
1414.7 	(2) failed to pay benefits in a timely manner, consistent with the requirements of this 
1414.8 	chapter;
1414.9 	(3) failed to submit reports as required by this chapter or rule adopted under this chapter; 
1414.10 	or
1414.11 	(4) otherwise failed to comply with this chapter or rule adopted under this chapter.
1414.12 	(b) The commissioner must give notice of the intention to terminate a plan to the employer 
1414.13 	at least ten days before taking any final action. The notice must state the effective date and 
1414.14 	the reason for the termination.
1414.15 	(c) The employer may, within ten days from mailing or personal service of the notice, 
1414.16 	file an appeal to the commissioner in the time, manner, method, and procedure provided by 
1414.17 	the commissioner under subdivision 11.
1414.18 	(d) (c) The payment of benefits must not be delayed during an employer's appeal of the 
1414.19 	revocation of approval of a private plan.
1414.20 	(e) (d) If the commissioner revokes approval of an employer's private plan, that employer 
1414.21 	is ineligible to apply for approval of another private plan for a period of three years, beginning 
1414.22 	on the date of revocation.

1414.23 	EFFECTIVE DATE. This section is effective July 1, 2025.

1414.24 	Sec. 36. Minnesota Statutes 2023 Supplement, section 268B.10, subdivision 17, is amended 
1414.25 	to read:
1414.26 		Subd. 17.Employer penalties. (a) The commissioner may assess the following monetary 
1414.27 	penalties against an employer with an approved private plan found to have violated this 
1414.28 	chapter:
1414.29 	(1) $1,000 for the first violation; and
1414.30 	(2) $2,000 for the second, and each successive violation.
1415.1 	(b) The commissioner must waive collection of any penalty if the employer corrects the 
1415.2 	violation within 30 days of receiving a notice of the violation and the notice is for a first 
1415.3 	violation.
1415.4 	(c) The commissioner may waive collection of any penalty if the commissioner determines 
1415.5 	the violation to be an inadvertent error by the employer.
1415.6 	(d) Monetary penalties collected under this section shall be deposited in the family and 
1415.7 	medical benefit insurance account.
1415.8 	(e) Assessment of penalties under this subdivision may be appealed as provided by the 
1415.9 	commissioner under subdivision 11.

1415.10 	EFFECTIVE DATE. This section is effective July 1, 2025.

1415.11 	Sec. 37. Minnesota Statutes 2023 Supplement, section 268B.10, is amended by adding a 
1415.12 	subdivision to read:
1415.13 		Subd. 21a.Filing obligation. Employers covered under a private plan are subject to the 
1415.14 	quarterly wage reporting requirements under section 268B.12.

1415.15 	EFFECTIVE DATE. This section is effective July 1, 2025.

1415.16 	Sec. 38. Minnesota Statutes 2023 Supplement, section 268B.14, subdivision 3, is amended 
1415.17 	to read:
1415.18 		Subd. 3.Employee charge back. Notwithstanding section 177.24, subdivision 4, or 
1415.19 	181.06, subdivision 1, and subject to subdivision 6, employers must pay a minimum of 50 
1415.20 	percent of the annual premiums paid under this section. Employees, through a deduction in 
1415.21 	their wages to the employer, must pay the remaining portion, if any, of the premium not 
1415.22 	paid by the employer. Such deductions for any given employee must be in equal proportion 
1415.23 	to the premiums paid based on the wages of that employee. Deductions under this section 
1415.24 	must not cause an employee's wage, after the deduction, to fall below the rate required to 
1415.25 	be paid to the worker employee by law, including any applicable statute, regulation, rule, 
1415.26 	ordinance, or government resolution or policy, or other legal authority, whichever rate of 
1415.27 	pay is greater.

1415.28 	EFFECTIVE DATE. This section is effective January 1, 2026.

1416.1 	Sec. 39. Minnesota Statutes 2023 Supplement, section 268B.14, is amended by adding a 
1416.2 	subdivision to read:
1416.3 		Subd. 5a.Small employer premium rate. (a) Small employers are eligible for the 
1416.4 	premium rates provided by this subdivision if the employer:
1416.5 	(1) has 30 or fewer employees pursuant to subdivision 5b; and
1416.6 	(2) the average wage for that employer as calculated in subdivision 5c is less than or 
1416.7 	equal to 150 percent of the state's average wage in covered employment for the basis period.
1416.8 	(b) The premium rate for small employers eligible under this subdivision is 75 percent 
1416.9 	of the annual premium rate calculated in subdivisions 6 and 7, as follows:
1416.10 	(1) employers must pay a minimum of 25 percent of the rate calculated in subdivisions 
1416.11 	6 and 7. Employers shall not deduct from any employees' pay to fund the employer portion 
1416.12 	of the premium; and
1416.13 	(2) employees must pay the remaining portion due under this subdivision, if any, of the 
1416.14 	premium not paid by the employer. The employer must make wage deductions as necessary 
1416.15 	under this subdivision to fund the employee portion of the premium.

1416.16 	Sec. 40. Minnesota Statutes 2023 Supplement, section 268B.14, is amended by adding a 
1416.17 	subdivision to read:
1416.18 		Subd. 5b.Employee count. (a) The basis period for determining premiums under:
1416.19 	(1) subdivision 5a;
1416.20 	(2) average employer wages under subdivision 5c; and
1416.21 	(3) eligibility for small employer assistance grants under section 268B.29
1416.22 	for any tax year shall be the four-quarter period ending September 30 of the prior year.
1416.23 	(b) For each employer that has been covered for the entirety of the basis period, the 
1416.24 	maximum number of quarterly wage records reported by the employer during the basis 
1416.25 	period shall be used to determine premiums under subdivision 5a and eligibility for small 
1416.26 	employer assistance grants under section 268B.29.
1416.27 	(c) For any employer not covered for the entirety of the basis period, the number of 
1416.28 	employees used to determine premiums under subdivision 5a and eligibility for small 
1416.29 	employer assistance grants under section 268B.29 shall be based on the number of employees 
1416.30 	working in Minnesota the employer estimates they will employ in the following calendar 
1416.31 	year.
1417.1 	(d) If upon a review of the actual number of wage records reported, it is found that a 
1417.2 	new employer's estimate at time of registration was ten percent or more less than the actual 
1417.3 	number of records reported, the employer's premiums under subdivision 5a and eligibility 
1417.4 	for small employer assistance grants under section 268B.29 shall be recalculated based on 
1417.5 	the wage records reported.

1417.6 	Sec. 41. Minnesota Statutes 2023 Supplement, section 268B.14, is amended by adding a 
1417.7 	subdivision to read:
1417.8 		Subd. 5c.Average wage for employer. (a) For each employer that has been covered 
1417.9 	for the entirety of the basis period, the employer's average wage shall be calculated by 
1417.10 	dividing the maximum amount of covered wages reported by the employer in a single 
1417.11 	quarterly wage record during the basis period by the maximum number of quarterly wage 
1417.12 	records reported by the employer during the basis period.
1417.13 	(b) For any employer not covered for the entirety of the basis period, the employer's 
1417.14 	average wage shall by calculated by dividing the employer's estimated amount of covered 
1417.15 	wages in the following tax year by the employer's estimated number of employees working 
1417.16 	in Minnesota the employer will employ in the following calendar year.
1417.17 	(c) If upon a review of the actual amount of covered wages reported it is found that a 
1417.18 	new employer's estimate at time of registration was ten percent or more less than the actual 
1417.19 	amount of covered wages, the employer's premiums under subdivision 5a and eligibility 
1417.20 	for small employer assistance grants under section 268B.29 shall be recalculated based on 
1417.21 	the wage records reported.

1417.22 	Sec. 42. Minnesota Statutes 2023 Supplement, section 268B.14, subdivision 7, is amended 
1417.23 	to read:
1417.24 		Subd. 7.Premium rate adjustments. (a) Beginning January 1, 2027 The commissioner 
1417.25 	may adjust the annual premium rates pursuant to this section prior to January 1, 2026. By 
1417.26 	July 31, 2026, and then by July 31 of each year thereafter, the commissioner must adjust 
1417.27 	the annual premium rates using the formula in paragraph (b) for the following calendar year 
1417.28 	based on program historical experience and sound actuarial principles and so that the 
1417.29 	projected fund balance as a percentage of total program expenditure does not fall below 25 
1417.30 	percent. The commissioner shall contract with a qualified independent actuarial consultant 
1417.31 	to conduct an actuarial study for this purpose no less than every year. A copy of all actuarial 
1417.32 	studies, and any revisions or other documents received that relate to an actuarial study, must 
1417.33 	be provided promptly to the chairs and ranking minority members of the legislative 
1418.1 	committees with jurisdiction over this chapter. All actuarial studies, and any revisions or 
1418.2 	other documents received that relate to an actuarial study, must also be filed with the 
1418.3 	Legislative Reference Library in compliance with section 3.195. A qualified independent 
1418.4 	actuarial consultant is one who is a Fellow of the Society of Actuaries (FSA) and a Member 
1418.5 	of the American Academy of Actuaries (MAAA) and who has experience directly relevant 
1418.6 	to the analysis required. In no year shall the annual premium rate exceed 1.2 percent of 
1418.7 	taxable wages paid to each employee.
1418.8 	(b) To calculate the employer rates for a calendar year, the commissioner must:
1418.9 	(1) multiply 1.45 times the amount disbursed from the family and medical benefit 
1418.10 	insurance account for the 52-week period ending September 30 of the prior year;
1418.11 	(2) subtract the amount in the family and medical benefit insurance account on that 
1418.12 	September 30 from the resulting figure;
1418.13 	(3) divide the resulting figure by the total wages in covered employment of employees 
1418.14 	of employers without approved private plans under section 268B.10 for either the family 
1418.15 	or medical benefit program. For employers with an approved private plan for either the 
1418.16 	medical benefit program or the family benefit program, but not both, count only the 
1418.17 	proportion of wages in covered employment associated with the program for which the 
1418.18 	employer does not have an approved private plan; and
1418.19 	(4) round the resulting figure down to the nearest one-hundredth of one percent.
1418.20 	(c) The commissioner must apportion the premium rate between the family and medical 
1418.21 	benefit programs based on the relative proportion of expenditures for each program during 
1418.22 	the preceding year.

1418.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

1418.24 	Sec. 43. Minnesota Statutes 2023 Supplement, section 268B.15, subdivision 7, is amended 
1418.25 	to read:
1418.26 		Subd. 7.Credit adjustments; refunds. (a) If an employer makes an application for a 
1418.27 	credit adjustment of any amount paid under this chapter within four years of the date that 
1418.28 	the payment was due, in a manner and format prescribed by the commissioner, and the 
1418.29 	commissioner determines that the payment or any portion thereof was erroneous, the 
1418.30 	commissioner must make an adjustment and issue a credit without interest. If a credit cannot 
1418.31 	be used, the commissioner must refund, without interest, the amount erroneously paid. The 
1418.32 	commissioner, on the commissioner's own motion, may make a credit adjustment or refund 
1418.33 	under this subdivision.
1419.1 	(b) Any refund returned to the commissioner is considered unclaimed property under 
1419.2 	chapter 345.
1419.3 	(c) If a credit adjustment or refund is denied in whole or in part, a determination of denial 
1419.4 	must be sent to the employer by mail or electronic transmission. The determination of denial 
1419.5 	is final unless an employer files an appeal within 20 calendar days after sending. Proceedings 
1419.6 	on the appeal are conducted in accordance with section 268B.08.
1419.7 	(d) If an employer receives a credit adjustment or refund under this section, the employer 
1419.8 	must determine the amount of any overpayment attributable to a deduction from employee 
1419.9 	wages under section 268B.14, subdivision 3, and return any amount erroneously deducted 
1419.10 	to each affected employee.

1419.11 	EFFECTIVE DATE. This section is effective January 1, 2026.

1419.12 	Sec. 44. Minnesota Statutes 2023 Supplement, section 268B.155, subdivision 2, is amended 
1419.13 	to read:
1419.14 		Subd. 2.Notice upon application. In an application for family or medical leave benefits, 
1419.15 	the applicant must disclose if child support obligations are owed and, if so, in what state 
1419.16 	and county. If child support obligations are owed, the commissioner must, if the applicant 
1419.17 	establishes a benefit account leave, notify the child support agency.

1419.18 	EFFECTIVE DATE. This section is effective January 1, 2026.

1419.19 	Sec. 45. Minnesota Statutes 2023 Supplement, section 268B.185, subdivision 2, is amended 
1419.20 	to read:
1419.21 		Subd. 2.Overpayment because of misrepresentation. (a) An applicant has committed 
1419.22 	misrepresentation if the applicant is overpaid benefits by making an intentional false 
1419.23 	statement or representation in an effort to fraudulently collect benefits. Overpayment because 
1419.24 	of misrepresentation does not occur where there is an unintentional mistake or a good faith 
1419.25 	belief as to the eligibility or correctness of the statement or representation.
1419.26 	(b) After the discovery of facts indicating misrepresentation, the commissioner must 
1419.27 	issue a determination of overpayment penalty assessing a penalty equal to 15 percent of the 
1419.28 	amount overpaid.
1419.29 	(c) Unless the applicant files an appeal within 30 calendar days after the sending of a 
1419.30 	determination of overpayment penalty to the applicant by mail or electronic transmission, 
1419.31 	the determination is final. Proceedings on the appeal are conducted in accordance with 
1419.32 	section 268B.08.
1420.1 	(d) (c) A determination of overpayment penalty must state the methods of collection the 
1420.2 	commissioner may use to recover the overpayment, penalty, and interest assessed. Money 
1420.3 	received in repayment of overpaid benefits, penalties, and interest is first applied to the 
1420.4 	benefits overpaid, second to the penalty amount due, and third to any interest due.
1420.5 	(e) (d) The department is authorized to issue a determination of overpayment penalty 
1420.6 	under this subdivision within 24 months of the establishment of the benefit account leave
1420.7 	upon which the benefits were obtained through misrepresentation.

1420.8 	EFFECTIVE DATE. This section is effective January 1, 2026.

1420.9 	Sec. 46. Minnesota Statutes 2023 Supplement, section 268B.19, is amended to read:
1420.10 	268B.19 EMPLOYER MISCONDUCT; PENALTY.
1420.11 	(a) The commissioner must penalize an employer if that employer or any employee, 
1420.12 	officer, or agent of that employer is in collusion with any applicant for the purpose of 
1420.13 	assisting the applicant in receiving benefits fraudulently. The penalty is $500 or the amount 
1420.14 	of benefits determined to be overpaid, whichever is greater.
1420.15 	(b) The commissioner must penalize an employer if that employer or any employee, 
1420.16 	officer, or agent of that employer:
1420.17 	(1) made a false statement or representation knowing it to be false;
1420.18 	(2) made a false statement or representation without a good-faith belief as to the 
1420.19 	correctness of the statement or representation; or
1420.20 	(3) knowingly failed to disclose a material fact.
1420.21 	(c) The penalty is the greater of $500 or 50 percent of the following resulting from the 
1420.22 	employer's action:
1420.23 	(1) the amount of any overpaid benefits to an applicant;
1420.24 	(2) the amount of benefits not paid to an applicant that would otherwise have been paid; 
1420.25 	or
1420.26 	(3) the amount of any payment required from the employer under this chapter that was 
1420.27 	not paid.
1420.28 	(d) Penalties must be paid within 30 calendar days of issuance of the determination of 
1420.29 	penalty and credited to the family and medical benefit insurance account.
1421.1 	(e) The determination of penalty is final unless the employer files an appeal within 30 
1421.2 	calendar days after the sending of the determination of penalty to the employer by United 
1421.3 	States mail or electronic transmission.

1421.4 	EFFECTIVE DATE. This section is effective July 1, 2024.

1421.5 	Sec. 47. Minnesota Statutes 2023 Supplement, section 268B.26, is amended to read:
1421.6 	268B.26 NOTICE REQUIREMENTS.
1421.7 	(a) Each employer must post in a conspicuous place on each of its premises a workplace 
1421.8 	notice prepared by the commissioner providing notice of benefits available under this chapter. 
1421.9 	The required workplace notice must be in English and each language other than English 
1421.10 	which is the primary language of five or more employees or independent contractors of that 
1421.11 	workplace, if such notice is available from the department.
1421.12 	(b) Each employer must issue to each employee not more than 30 days from the beginning 
1421.13 	date of the employee's employment, or 30 days before premium collection begins, whichever 
1421.14 	is later, the following written information provided by the department in the primary language 
1421.15 	of the employee:
1421.16 	(1) an explanation of the availability of family and medical leave benefits provided under 
1421.17 	this chapter, including rights to reinstatement and continuation of health insurance;
1421.18 	(2) the amount of premium deductions made by the employer under this chapter;
1421.19 	(3) the employer's premium amount and obligations under this chapter;
1421.20 	(4) the name and mailing address of the employer;
1421.21 	(5) the identification number assigned to the employer by the department;
1421.22 	(6) instructions on how to file a claim for family and medical leave benefits;
1421.23 	(7) the mailing address, email address, and telephone number of the department; and
1421.24 	(8) any other information required by the department.
1421.25 	Delivery is made when an employee provides written or electronic acknowledgment of 
1421.26 	receipt of the information, or signs a statement indicating the employee's refusal to sign 
1421.27 	such acknowledgment. In cases where an employee refuses to acknowledge receipt, an 
1421.28 	employer must be able to demonstrate the way the employee had been notified.
1421.29 	(c) An employer that fails to comply with this section may be issued, for a first violation, 
1421.30 	a civil penalty of $50 per employee, and for each subsequent violation, a civil penalty of 
1422.1 	$300 per employee. The employer shall have the burden of demonstrating compliance with 
1422.2 	this section.
1422.3 	(d) Employer notice to an employee under this section may be provided in paper or 
1422.4 	electronic format. For notice provided in electronic format only, the employer must provide 
1422.5 	employee access to an employer-owned computer during an employee's regular working 
1422.6 	hours to review and print required notices.
1422.7 	(e) The department shall prepare a uniform employee notice form for employers to use 
1422.8 	that provides the notice information required under this section. The commissioner shall 
1422.9 	prepare the uniform employee notice in the five most common languages spoken in 
1422.10 	Minnesota.
1422.11 	(f) Each employer who employs or intends to employ seasonal employees as defined in 
1422.12 	section 268B.01, subdivision 35, must issue to each seasonal employee a notice that the 
1422.13 	employee is not eligible to receive paid family and medical leave benefits while the employee 
1422.14 	is so employed. The notice must be provided at the time an employment offer is made, or 
1422.15 	within 30 days of November 1, 2025, for the employer's existing seasonal employees, and 
1422.16 	be in a form provided by the department. Delivery is made when an employee provides 
1422.17 	written or electronic acknowledgment of receipt of the information, or signs a statement 
1422.18 	indicating the employee's refusal to sign such acknowledgment.

1422.19 	EFFECTIVE DATE. This section is effective November 1, 2025.

1422.20 	Sec. 48. Minnesota Statutes 2023 Supplement, section 268B.27, subdivision 2, is amended 
1422.21 	to read:
1422.22 		Subd. 2.Construction. Nothing in this chapter shall be construed to:
1422.23 	(1) allow an employer to compel an employee to exhaust accumulated sick, vacation, 
1422.24 	or personal time before or while taking leave under this chapter;
1422.25 	(2) prohibit an employer from providing additional benefits, including but not limited 
1422.26 	to covering the portion of earnings not provided during periods of leave covered under this 
1422.27 	chapter including through a supplemental benefit payment, as defined under section 268B.01, 
1422.28 	subdivision 41;
1422.29 	(3) limit the parties to a collective bargaining agreement from bargaining and agreeing 
1422.30 	with respect to leave benefits and related procedures policies and employee protections that 
1422.31 	meet or exceed, and do not otherwise conflict with, the minimum standards and requirements 
1422.32 	in this chapter; or
1423.1 	(4) be applied so as to create any power or duty in conflict with federal law.

1423.2 	EFFECTIVE DATE. This section is effective January 1, 2026.

1423.3 	Sec. 49. Minnesota Statutes 2023 Supplement, section 268B.29, is amended to read:
1423.4 	268B.29 SMALL BUSINESS EMPLOYER ASSISTANCE GRANTS.
1423.5 	(a) Employers with 30 or fewer employees and less than $3,000,000 in gross annual 
1423.6 	revenues as calculated under section 268B.14, subdivision 5b, and an average wage for that 
1423.7 	employer under section 268B.14, subdivision 5c, less than or equal to 150 percent of the 
1423.8 	state's average wage in covered employment for the prior year may apply to the department 
1423.9 	for grants under this section.
1423.10 	(b) The commissioner may approve a grant of up to $3,000 if the employer hires a 
1423.11 	temporary worker, or increases another existing worker's wages, to substitute for an employee 
1423.12 	on family or medical leave for a period of seven days or more.
1423.13 	(c) The maximum total grant per eligible employer in a calendar year is $6,000.
1423.14 	(d) Grants must be used to hire temporary workers or to increase wages for current 
1423.15 	employees. To be eligible for consideration for a grant under this section, the employer 
1423.16 	must documentation attest, in a manner and format prescribed by the commissioner, that:
1423.17 	(1) the temporary worker hired or wage-related costs incurred are due to an employee's 
1423.18 	use of leave under this chapter;
1423.19 	(2) the amount of the grant requested is less than or equal to the additional costs incurred 
1423.20 	by the employer; and
1423.21 	(3) the employer meets the revenue requirements in paragraph (a).
1423.22 	(e) Applications shall be submitted and processed on a first-received, first-processed 
1423.23 	basis in a form and manner determined by the commissioner within each calendar year until 
1423.24 	funding is exhausted. Applications received after funding has been exhausted in a calendar 
1423.25 	year are not eligible for reimbursement.
1423.26 	(f) For the purposes of this section, the commissioner shall average the number of 
1423.27 	employees reported by an employer over the last four completed calendar quarters as 
1423.28 	submitted in the wage detail records required in section 268B.12 to determine the size of 
1423.29 	the employer.
1423.30 	(g) (f) An employer who has an approved private plan is not eligible to receive a grant 
1423.31 	under this section.
1424.1 	(h) (g) Unless additional funds are appropriated, the commissioner may award grants 
1424.2 	under this section up to a maximum of $5,000,000 per calendar year from the family and 
1424.3 	medical benefit insurance account.

1424.4 	EFFECTIVE DATE. This section is effective January 1, 2026.

1424.5 	Sec. 50. [268B.30] DATA PRIVACY.
1424.6 	(a) Except as provided by this section, data collected, created, or maintained under this 
1424.7 	chapter are private data on individuals or nonpublic data not on individuals as defined in 
1424.8 	section 13.02, subdivisions 9 and 12, and must not be disclosed except according to a district 
1424.9 	court order or section 13.05. A subpoena is not considered a district court order.
1424.10 	(b) Data classified under paragraph (a) may be disseminated to and used by the following 
1424.11 	without the consent of the subject of the data:
1424.12 	(1) state and federal agencies specifically authorized access to the data by state or federal 
1424.13 	law;
1424.14 	(2) the unemployment insurance division, to the extent necessary to administer the 
1424.15 	programs established under this chapter and chapter 268;
1424.16 	(3) employers, to the extent necessary to support adjudication of application requests 
1424.17 	and to support the employer's administration of a leave of absence;
1424.18 	(4) health care providers, to the extent necessary to support verification of health care 
1424.19 	conditions and qualifying events;.
1424.20 	(5) the public authority responsible for child support in Minnesota or any other state in 
1424.21 	accordance with section 256.978;
1424.22 	(6) human rights agencies within Minnesota that have enforcement powers;
1424.23 	(7) the Department of Revenue, to the extent necessary for its duties under Minnesota 
1424.24 	laws;
1424.25 	(8) public and private agencies responsible for administering publicly financed assistance 
1424.26 	programs for the purpose of monitoring the eligibility of the program's recipients;
1424.27 	(9) the Department of Labor and Industry and the Commerce Fraud Bureau in the 
1424.28 	Department of Commerce for uses consistent with the administration of their duties under 
1424.29 	Minnesota law;
1424.30 	(10) the Department of Human Services and the Office of Inspector General and its 
1424.31 	agents within the Department of Human Services, including county fraud investigators, for 
1425.1 	investigations related to recipient or provider fraud and employees of providers when the 
1425.2 	provider is suspected of committing public assistance fraud;
1425.3 	(11) the Department of Public Safety for support in identify verification;
1425.4 	(12) local, state, and federal law enforcement agencies for the purpose of ascertaining 
1425.5 	the last known address and employment location of an individual who is the subject of a 
1425.6 	criminal investigation;
1425.7 	(13) the Department of Health for the purposes of epidemiologic investigations;
1425.8 	(14) the Department of Corrections for the purposes of tracking incarceration of 
1425.9 	applicants; and
1425.10 	(15) contracted third parties, to the extent necessary to aid in identity verification, 
1425.11 	adjudication, administration, and evaluation of the program.
1425.12 	(c) Data on individuals and employers that are collected, maintained, or used by the 
1425.13 	department in an investigation under section 268B.19, 268B.21, 268B.22, or 268B.23 are 
1425.14 	confidential as to data on individuals and protected nonpublic data not on individuals as 
1425.15 	defined in section 13.02, subdivisions 3 and 13, and must not be disclosed except under 
1425.16 	statute or district court order or to a party named in a criminal proceeding, administrative 
1425.17 	or judicial, for preparation of a defense.
1425.18 	(d) Data gathered by the department in the administration of this chapter must not be 
1425.19 	made the subject or the basis for any suit in any civil proceedings, administrative or judicial, 
1425.20 	unless the action is initiated by the department.

1425.21 	Sec. 51. REPEALER.
 1425.22 	(a) Minnesota Statutes 2023 Supplement, section 268B.06, subdivision 7, is repealed 
1425.23 	effective the day following final enactment.
1425.24 	(b) Minnesota Statutes 2023 Supplement, section 268B.10, subdivision 11, is repealed 
1425.25 	effective July 1, 2025.
1425.26 	(c) Minnesota Statutes 2023 Supplement, section 268B.14, subdivision 5, is repealed 
1425.27 	effective January 1, 2026.
1425.28 	(d) Minnesota Statutes 2023 Supplement, section 268B.08, is repealed effective November 
1425.29 	1, 2025.
1425.30 	Delete the title and insert:
1426.1 	A bill for an act
1426.2 	relating to the operation and financing of state government; modifying trunk 
1426.3 	highway bonds, transportation policy, combative sports, construction codes and 
1426.4 	licensing, the Bureau of Mediation Services, the Public Employee Labor Relations 
1426.5 	Act, employee misclassification, earned sick and safe time, University of Minnesota 
1426.6 	collective bargaining, broadband and pipeline safety, housing policy, and 
1426.7 	transportation network companies; expediting rental assistance; establishing 
1426.8 	registration for transfer care specialists; establishing licensure for behavior analysts; 
1426.9 	establishing licensure for veterinary technicians and a veterinary institutional 
1426.10 	license; modifying provisions of veterinary supervision; modifying specialty dentist 
1426.11 	licensure and dental assistant licensure by credentials; removing additional 
1426.12 	collaboration requirements for physician assistants to provide certain psychiatric 
1426.13 	treatment; modifying social worker provisional licensure; establishing guest 
1426.14 	licensure for marriage and family therapists; modifying pharmacy provisions for 
1426.15 	certain reporting requirements and change of ownership or relocation; modifying 
1426.16 	higher education policy provisions; amending the definition of trigger activator; 
1426.17 	increasing penalties for transferring firearms to certain persons who are ineligible 
1426.18 	to possess firearms; amending agriculture policy provisions; establishing and 
1426.19 	modifying agriculture programs; providing broadband appropriation transfer 
1426.20 	authority; requiring an application for federal broadband aid; adding and modifying 
1426.21 	provisions governing energy policy; establishing the Minnesota Energy 
1426.22 	Infrastructure Permitting Act; modifying provisions related to disability services, 
1426.23 	aging services, substance use disorder treatment services, priority admissions to 
1426.24 	state-operated programs and civil commitment, and Direct Care and Treatment; 
1426.25 	modifying provisions related to licensing of assisted living facilities; modifying 
1426.26 	provisions governing the Department of Human Services, human services health 
1426.27 	care policy, health care finance, and licensing policy; modifying provisions 
1426.28 	governing the Department of Health, health policy, health insurance, and health 
1426.29 	care; modifying provisions governing pharmacy practice and behavioral health; 
1426.30 	establishing an Office of Emergency Medical Services and making conforming 
1426.31 	changes; modifying individual income taxes, minerals taxes, tax-forfeited property, 
1426.32 	and miscellaneous tax provisions; modifying state employee compensation; 
1426.33 	modifying paid leave provisions; imposing penalties; authorizing administrative 
1426.34 	rulemaking; making technical changes; requiring reports; appropriating money;
1426.35 	amending Minnesota Statutes 2022, sections 3.7371, subdivisions 2, 3, by adding 
1426.36 	subdivisions; 13.46, subdivisions 1, as amended, 10, as amended; 13.6905, by 
1426.37 	adding a subdivision; 13.824, subdivision 1, by adding a subdivision; 16A.055, 
1426.38 	subdivision 1a, by adding a subdivision; 17.116, subdivision 2; 17.133, subdivision 
1426.39 	1; 18B.01, by adding a subdivision; 18B.26, subdivision 6; 18B.28, by adding a 
1426.40 	subdivision; 18B.305, subdivision 2; 18B.32, subdivisions 1, 3, 4, 5; 18B.33, 
1426.41 	subdivisions 1, 5, 6; 18B.34, subdivisions 1, 4; 18B.35, subdivision 1; 18B.36, 
1426.42 	subdivisions 1, 2; 18B.37, subdivisions 2, 3; 18C.005, subdivision 33, by adding 
1426.43 	a subdivision; 18C.115, subdivision 2; 18C.215, subdivision 1; 18C.221; 18C.70, 
1426.44 	subdivisions 1, 5; 18C.71, subdivisions 1, 2, 4, by adding a subdivision; 18C.80, 
1426.45 	subdivision 2; 18D.301, subdivision 1; 28A.10; 28A.151, subdivisions 1, 2, 3, 5, 
1426.46 	by adding a subdivision; 28A.21, subdivision 6; 31.74; 31.94; 32D.30; 41B.039, 
1426.47 	subdivision 2; 41B.04, subdivision 8; 41B.042, subdivision 4; 41B.043, subdivision 
1426.48 	1b; 41B.045, subdivision 2; 41B.047, subdivision 1; 43A.05, subdivision 3; 43A.18, 
1426.49 	subdivisions 2, 3, 9; 43A.24, by adding a subdivision; 62A.0411; 62A.15, 
1426.50 	subdivision 4, by adding a subdivision; 62A.28, subdivision 2; 62D.02, subdivision 
1426.51 	7; 62D.04, subdivision 5; 62D.12, subdivision 19; 62D.14, subdivision 1; 62D.20, 
1426.52 	subdivision 1; 62D.22, subdivision 5, by adding a subdivision; 62J.49, subdivision 
1426.53 	1; 62J.61, subdivision 5; 62M.01, subdivision 3; 62M.02, subdivisions 1a, 5, 11, 
1426.54 	12, 21, by adding a subdivision; 62M.04, subdivision 1; 62M.05, subdivision 3a; 
1426.55 	62M.07, subdivisions 2, 4, by adding a subdivision; 62M.10, subdivisions 7, 8; 
1426.56 	62M.17, subdivision 2; 62Q.097, by adding a subdivision; 62Q.14; 62Q.19, 
1426.57 	subdivisions 3, 5, by adding a subdivision; 62Q.73, subdivision 2; 62V.05, 
1426.58 	subdivision 12; 62V.08; 62V.11, subdivision 4; 65B.472; 103I.621, subdivisions 
1427.1 	1, 2; 116C.83, subdivision 6; 116J.395, subdivision 6, by adding subdivisions; 
1427.2 	116J.396, by adding a subdivision; 116J.871, subdivision 4; 123B.53, subdivision 
1427.3 	1; 134A.09, subdivision 2a; 134A.10, subdivision 3; 135A.15, as amended; 
1427.4 	136A.091, subdivision 3; 136A.1241, subdivision 3; 136A.1701, subdivisions 4, 
1427.5 	7; 136A.29, subdivision 9; 136A.62, by adding subdivisions; 136A.63, subdivision 
1427.6 	1; 136A.646; 136A.65, subdivision 4; 136A.675, subdivision 2; 136A.69, 
1427.7 	subdivision 1; 136A.821, subdivision 5, by adding a subdivision; 136A.822, 
1427.8 	subdivisions 1, 2, 6, 7, 8; 136A.824, subdivisions 1, 2; 136A.828, subdivision 3, 
1427.9 	by adding a subdivision; 136A.829, subdivision 3, by adding a subdivision; 144.05, 
1427.10 	subdivisions 6, 7, by adding a subdivision; 144.0572, subdivision 1; 144.058; 
1427.11 	144.0724, subdivisions 2, 3a, 4, 6, 7, 8, 9, 11; 144.1464, subdivisions 1, 2, 3; 
1427.12 	144.1501, subdivision 5; 144.1911, subdivision 2; 144.212, by adding a subdivision; 
1427.13 	144.216, subdivision 2, by adding subdivisions; 144.218, by adding a subdivision; 
1427.14 	144.292, subdivision 6; 144.293, subdivisions 2, 4, 9, 10; 144.493, by adding a 
1427.15 	subdivision; 144.494, subdivision 2; 144.551, subdivision 1; 144.555, subdivisions 
1427.16 	1a, 1b, 2, by adding subdivisions; 144.605, by adding a subdivision; 144.7067, 
1427.17 	subdivision 2; 144.99, subdivision 3; 144A.10, subdivisions 15, 16; 144A.471, by 
1427.18 	adding a subdivision; 144A.474, subdivision 13; 144A.61, subdivision 3a; 144A.70, 
1427.19 	subdivisions 3, 5, 6, 7; 144A.71, subdivision 2, by adding a subdivision; 144A.72, 
1427.20 	subdivision 1; 144A.73; 144E.001, subdivision 3a, by adding subdivisions; 
1427.21 	144E.101, by adding a subdivision; 144E.16, subdivisions 5, 7; 144E.19, 
1427.22 	subdivision 3; 144E.27, subdivisions 3, 5, 6; 144E.28, subdivisions 3, 5, 6, 8; 
1427.23 	144E.285, subdivisions 1, 2, 4, 6, by adding subdivisions; 144E.287; 144E.305, 
1427.24 	subdivision 3; 144G.08, subdivision 29; 144G.10, by adding a subdivision; 
1427.25 	144G.16, subdivision 6; 144G.41, subdivision 1, by adding subdivisions; 144G.63, 
1427.26 	subdivisions 1, 4; 144G.64; 145.61, subdivision 5; 146B.03, subdivision 7a; 
1427.27 	146B.10, subdivisions 1, 3; 148.511; 148.512, subdivision 17a; 148.513, 
1427.28 	subdivisions 1, 2, 3, by adding a subdivision; 148.514, subdivision 2; 148.515, 
1427.29 	subdivision 1; 148.518; 148.519, subdivision 1, by adding a subdivision; 148.5191, 
1427.30 	subdivision 1, by adding a subdivision; 148.5192, subdivisions 1, 2, 3; 148.5193, 
1427.31 	subdivision 1, by adding a subdivision; 148.5194, subdivision 8, by adding a 
1427.32 	subdivision; 148.5195, subdivisions 5, 6; 148.5196, subdivision 3; 148D.061, 
1427.33 	subdivisions 1, 8; 148D.062, subdivisions 3, 4; 148D.063, subdivisions 1, 2; 
1427.34 	148E.055, by adding subdivisions; 149A.01, subdivision 3; 149A.02, subdivisions 
1427.35 	3, 3b, 13a, 16, 23, 26a, 27, 35, 37c, by adding subdivisions; 149A.03; 149A.09; 
1427.36 	149A.11; 149A.60; 149A.61, subdivisions 4, 5; 149A.62; 149A.63; 149A.65; 
1427.37 	149A.70, subdivisions 1, 2, 3, 4, 5, 7; 149A.71, subdivisions 2, 4; 149A.72, 
1427.38 	subdivisions 3, 9; 149A.73, subdivision 1; 149A.74, subdivision 1; 149A.90, 
1427.39 	subdivisions 2, 4, 5; 149A.93, subdivision 3; 149A.94, subdivisions 1, 3, 4; 
1427.40 	149A.97, subdivision 2; 150A.06, subdivisions 1c, 8; 151.01, subdivisions 23, 27; 
1427.41 	151.065, subdivision 7, by adding subdivisions; 151.066, subdivisions 1, 2, 3; 
1427.42 	151.212, by adding a subdivision; 151.37, by adding a subdivision; 151.74, 
1427.43 	subdivision 6; 156.001, by adding subdivisions; 156.07; 156.12, subdivisions 2, 
1427.44 	4; 161.089; 161.14, by adding a subdivision; 161.3203, subdivision 4; 161.45, by 
1427.45 	adding subdivisions; 161.46, subdivision 1; 162.02, by adding a subdivision; 
1427.46 	162.081, subdivision 4; 162.09, by adding a subdivision; 162.145, subdivision 5; 
1427.47 	168.09, subdivision 7; 168.092; 168.127; 168.301, subdivision 3; 168.33, by adding 
1427.48 	a subdivision; 168A.10, subdivision 2; 168A.11, subdivisions 1, 2; 168B.035, 
1427.49 	subdivision 3; 169.011, by adding subdivisions; 169.04; 169.06, by adding 
1427.50 	subdivisions; 169.14, subdivision 10, by adding subdivisions; 169.18, by adding 
1427.51 	a subdivision; 169.21, subdivision 6; 169.222, subdivisions 2, 6a, 6b; 169.346, 
1427.52 	subdivision 2; 169.974, subdivision 5; 169.99, subdivision 1; 171.01, by adding 
1427.53 	subdivisions; 171.06, subdivision 3b; 171.061, by adding a subdivision; 171.12, 
1427.54 	by adding a subdivision; 171.13, subdivision 9; 171.16, subdivision 3; 174.02, by 
1427.55 	adding a subdivision; 174.185, subdivisions 2, 3, by adding subdivisions; 174.40, 
1427.56 	subdivision 3; 174.75, subdivisions 1, 2, by adding a subdivision; 177.27, 
1427.57 	subdivision 3; 179A.041, subdivision 2; 179A.09, by adding subdivisions; 179A.11, 
1427.58 	subdivisions 1, 2, by adding a subdivision; 179A.12, subdivision 5; 179A.13, 
1428.1 	subdivisions 1, 2; 179A.40, subdivision 1; 179A.54, subdivision 5; 181.171, 
1428.2 	subdivision 1; 181.722; 181.723; 181.960, subdivision 3; 214.025; 214.04, 
1428.3 	subdivision 2a; 214.29; 214.31; 214.355; 216A.037, subdivision 1; 216A.07, 
1428.4 	subdivision 3; 216B.098, by adding a subdivision; 216B.16, subdivisions 6c, 8; 
1428.5 	216B.17, by adding a subdivision; 216B.2402, subdivisions 4, 10, by adding a 
1428.6 	subdivision; 216B.2403, subdivisions 2, 3, 5, 8; 216B.241, subdivisions 1c, 2, 11, 
1428.7 	12; 216B.2421, subdivision 2; 216B.2425, subdivisions 1, 2, by adding a 
1428.8 	subdivision; 216B.2427, subdivision 1, by adding a subdivision; 216B.243, 
1428.9 	subdivisions 3, 3a, 4, 9; 216B.246, subdivision 3; 216C.10; 216C.435, subdivisions 
1428.10 	3a, 3b, 4, 10, by adding subdivisions; 216C.436, subdivisions 1, 4, 7, 8, 10; 
1428.11 	216E.02, subdivision 1; 216E.08, subdivision 2; 216E.11; 216E.13; 216E.14; 
1428.12 	216E.15; 216E.16; 216E.18, subdivision 2a; 221.0255, subdivisions 4, 9, by adding 
1428.13 	a subdivision; 232.21, subdivisions 3, 7, 11, 12, 13; 245.462, subdivision 6; 
1428.14 	245.4663, subdivision 2; 245.821, subdivision 1; 245.825, subdivision 1; 245A.043, 
1428.15 	subdivisions 2, 4, by adding subdivisions; 245A.07, subdivision 6; 245A.11, 
1428.16 	subdivision 2a; 245C.05, subdivision 5; 245C.10, subdivision 18; 245C.14, 
1428.17 	subdivision 1, by adding a subdivision; 245C.15, subdivisions 3, 4; 245C.22, 
1428.18 	subdivision 4; 245C.24, subdivisions 2, 5; 245C.30, by adding a subdivision; 
1428.19 	245F.09, subdivision 2; 245F.14, by adding a subdivision; 245F.17; 245G.07, 
1428.20 	subdivision 4; 245G.08, subdivisions 5, 6; 245G.10, by adding a subdivision; 
1428.21 	245G.22, subdivisions 6, 7; 245I.02, subdivisions 17, 19; 245I.04, subdivision 6; 
1428.22 	245I.10, subdivision 9; 245I.11, subdivision 1, by adding a subdivision; 245I.20, 
1428.23 	subdivision 4; 245I.23, subdivisions 14, 19a; 246.018, subdivision 3, as amended; 
1428.24 	246.129, as amended; 246.13, subdivision 2, as amended; 246.234, as amended; 
1428.25 	246.36, as amended; 246.511, as amended; 252.27, subdivision 2b; 252.282, 
1428.26 	subdivision 1, by adding a subdivision; 254B.01, by adding subdivisions; 256.01, 
1428.27 	subdivision 41, by adding a subdivision; 256.88; 256.89; 256.90; 256.91; 256.92; 
1428.28 	256.9657, subdivision 8, by adding a subdivision; 256.969, by adding subdivisions; 
1428.29 	256.9755, subdivisions 2, 3; 256B.02, subdivision 11; 256B.035; 256B.056, 
1428.30 	subdivisions 1a, 10; 256B.0622, subdivisions 2a, 3a, 7a, 7d; 256B.0623, subdivision 
1428.31 	5; 256B.0625, subdivisions 10, 12, 32, 39, by adding subdivisions; 256B.0757, 
1428.32 	subdivisions 4a, 4d; 256B.076, by adding a subdivision; 256B.0911, subdivisions 
1428.33 	12, 17, 20; 256B.0913, subdivision 5a; 256B.0924, subdivision 3; 256B.0943, 
1428.34 	subdivisions 3, 12; 256B.0947, subdivision 5; 256B.434, by adding a subdivision; 
1428.35 	256B.49, subdivision 16, by adding a subdivision; 256B.4911, by adding 
1428.36 	subdivisions; 256B.4912, subdivision 1; 256B.69, subdivisions 2, 4; 256B.76, 
1428.37 	subdivision 6; 256B.77, subdivision 7a; 256B.795; 256I.04, subdivision 2f; 
1428.38 	256K.45, subdivision 2; 256L.12, subdivision 7; 256R.02, subdivision 20; 256S.07, 
1428.39 	subdivision 1; 256S.205, subdivisions 2, 3, 5, by adding a subdivision; 259.52, 
1428.40 	subdivisions 2, 4; 260E.33, subdivision 2, as amended; 270B.14, subdivision 17, 
1428.41 	by adding a subdivision; 270C.21; 273.135, subdivision 2; 275.065, by adding a 
1428.42 	subdivision; 276.04, by adding a subdivision; 276A.01, subdivision 17; 276A.06, 
1428.43 	subdivision 8; 279.06, subdivision 1; 281.23, subdivision 2; 282.01, subdivision 
1428.44 	6; 282.241, subdivision 1; 282.301; 289A.08, subdivision 1; 297A.815, subdivision 
1428.45 	3; 297F.01, subdivisions 10b, 19; 298.17; 298.2215, subdivision 1; 298.28, 
1428.46 	subdivision 8; 298.282, subdivision 1; 298.292, subdivision 2; 299E.01, subdivision 
1428.47 	2; 317A.811, subdivision 1; 326B.081, subdivisions 3, 6, 8; 326B.082, subdivisions 
1428.48 	1, 2, 4, 6, 7, 10, 11, 13, by adding a subdivision; 326B.701; 326B.89, subdivision 
1428.49 	5; 341.28, by adding a subdivision; 341.29; 383B.145, subdivision 5; 430.01, 
1428.50 	subdivision 2; 430.011, subdivisions 1, 2, 3; 430.023; 430.031, subdivision 1; 
1428.51 	430.13; 447.42, subdivision 1; 462A.02, subdivision 10; 462A.05, subdivisions 
1428.52 	14a, 14b, 15, 15b, 21, 23; 462A.07, by adding subdivisions; 462A.21, subdivision 
1428.53 	7; 462A.35, subdivision 2; 462A.37, by adding a subdivision; 462A.40, subdivisions 
1428.54 	2, 3; 473.13, by adding a subdivision; 473.3927; 473.452; 480.15, by adding a 
1428.55 	subdivision; 524.3-801, as amended; 604A.04, subdivision 3; 624.7141; 626.892, 
1428.56 	subdivision 10; Minnesota Statutes 2023 Supplement, sections 3.855, subdivisions 
1428.57 	2, 3, 6; 10.65, subdivision 2; 13.43, subdivision 6; 13.46, subdivision 2, as amended; 
1428.58 	15.01; 15.06, subdivision 1, as amended; 15A.0815, subdivision 2; 15A.082, 
1429.1 	subdivisions 1, 3, 7; 17.055, subdivision 3; 17.133, subdivision 3; 17.134, 
1429.2 	subdivision 3, by adding a subdivision; 17.710; 18C.425, subdivision 6; 18K.06; 
1429.3 	43A.08, subdivisions 1, 1a; 62J.84, subdivision 10; 62Q.46, subdivision 1; 62Q.473, 
1429.4 	by adding subdivisions; 82.75, subdivision 8; 116C.779, subdivision 1; 116C.7792; 
1429.5 	116J.871, subdivisions 1, as amended, 2; 123B.935, subdivision 1; 135A.121, 
1429.6 	subdivision 2; 135A.161, by adding a subdivision; 135A.162, subdivision 2; 
1429.7 	136A.1241, subdivision 5; 136A.1465, subdivisions 1, 2, 3, 4, 5; 136A.62, 
1429.8 	subdivision 3; 136A.833, subdivision 2; 136F.38, subdivision 3; 142A.03, by 
1429.9 	adding a subdivision; 144.0526, subdivision 1; 144.1501, subdivision 2; 144.1505, 
1429.10 	subdivision 2; 144.651, subdivision 10a; 144A.4791, subdivision 10; 144E.101, 
1429.11 	subdivisions 6, 7, as amended; 145.561, subdivision 4; 145D.01, subdivision 1; 
1429.12 	148.5195, subdivision 3; 148.5196, subdivision 1; 148B.392, subdivision 2; 
1429.13 	151.555, subdivisions 1, 4, 5, 6, 7, 8, 9, 11, 12; 151.74, subdivision 3; 152.126, 
1429.14 	subdivision 6; 161.178; 161.46, subdivision 2; 162.146, by adding a subdivision; 
1429.15 	168.1259; 168.29; 169.011, subdivision 27; 169.223, subdivision 4; 171.06, 
1429.16 	subdivision 3; 171.0705, subdivision 2; 171.301, subdivisions 3, 6; 174.49, 
1429.17 	subdivision 6; 174.634, subdivision 2, by adding a subdivision; 177.27, subdivisions 
1429.18 	1, 2, 4, 7; 177.50, by adding subdivisions; 179A.03, subdivisions 14, 18; 179A.041, 
1429.19 	subdivision 10; 179A.06, subdivision 6; 179A.07, subdivisions 8, 9; 179A.10, 
1429.20 	subdivision 2; 179A.12, subdivisions 2a, 6, 11; 181.032; 181.9445, subdivisions 
1429.21 	4, 5, by adding a subdivision; 181.9446; 181.9447, subdivisions 1, 3, 5, 10, 11, 
1429.22 	by adding a subdivision; 181.9448, subdivisions 1, 2, 3; 216B.243, subdivision 8; 
1429.23 	216C.08; 216C.09; 216C.331, subdivision 1; 216C.435, subdivision 8; 216C.436, 
1429.24 	subdivisions 1b, 2; 216E.06; 216E.07; 216E.10, subdivisions 1, 2, 3; 219.015, 
1429.25 	subdivision 2; 245.4889, subdivision 1; 245.735, subdivision 3; 245.91, subdivision 
1429.26 	4; 245.991, subdivision 1; 245A.03, subdivisions 2, as amended, 7, as amended; 
1429.27 	245A.043, subdivision 3; 245A.07, subdivision 1, as amended; 245A.11, 
1429.28 	subdivision 7; 245A.16, subdivision 1, as amended; 245A.211, subdivision 4; 
1429.29 	245A.242, subdivision 2; 245C.02, subdivision 13e; 245C.031, subdivision 4; 
1429.30 	245C.08, subdivision 1; 245C.15, subdivisions 2, 4a; 245C.31, subdivision 1; 
1429.31 	245G.07, subdivision 2; 245G.22, subdivisions 2, 17; 245I.04, subdivision 19; 
1429.32 	246.54, subdivisions 1a, 1b; 246C.01; 246C.02, as amended; 246C.04, as amended; 
1429.33 	246C.05, as amended; 253B.10, subdivision 1, as amended; 254B.04, subdivision 
1429.34 	1a; 254B.05, subdivisions 1, 5, as amended; 254B.19, subdivision 1; 256.043, 
1429.35 	subdivision 3; 256.0471, subdivision 1, as amended; 256.4764, subdivision 3; 
1429.36 	256.9631; 256.969, subdivision 2b; 256.9756, subdivisions 1, 2; 256B.0622, 
1429.37 	subdivisions 7b, 8; 256B.0625, subdivisions 3a, 5m, 9, 13e, as amended, 13f, 13k, 
1429.38 	16; 256B.064, subdivision 4; 256B.0671, subdivisions 3, 5; 256B.0701, subdivision 
1429.39 	6; 256B.0911, subdivision 13; 256B.0913, subdivision 5, as amended; 256B.092, 
1429.40 	subdivision 1a; 256B.0947, subdivision 7; 256B.0949, subdivision 15; 256B.49, 
1429.41 	subdivision 13; 256B.764; 256B.766; 256D.01, subdivision 1a; 256I.05, 
1429.42 	subdivisions 1a, 11; 256L.03, subdivision 1; 256L.04, subdivision 10; 256R.55; 
1429.43 	260.761, by adding a subdivision; 268B.01, subdivisions 3, 5, 8, 15, 23, 44, by 
1429.44 	adding subdivisions; 268B.04; 268B.06, subdivisions 2, 3, 4, 5, by adding a 
1429.45 	subdivision; 268B.07, subdivisions 1, 2, 3; 268B.085, subdivision 3; 268B.09, 
1429.46 	subdivisions 1, 6, 7; 268B.10, subdivisions 1, 2, 3, 6, 12, 16, 17, by adding 
1429.47 	subdivisions; 268B.14, subdivisions 3, 7, by adding subdivisions; 268B.15, 
1429.48 	subdivision 7; 268B.155, subdivision 2; 268B.185, subdivision 2; 268B.19; 
1429.49 	268B.26; 268B.27, subdivision 2; 268B.29; 270B.14, subdivision 1; 290.0661, 
1429.50 	subdivisions 4, 8, by adding a subdivision; 297A.993, subdivision 2a; 298.018, 
1429.51 	subdivision 1; 298.28, subdivisions 7a, 16; 299A.642, subdivision 15; 326B.106, 
1429.52 	subdivision 1; 341.25; 341.28, subdivision 5; 341.30, subdivision 4; 341.321; 
1429.53 	341.33, by adding a subdivision; 341.355; 357.021, subdivision 6; 462A.05, 
1429.54 	subdivisions 14, 45; 462A.22, subdivision 1; 462A.37, subdivisions 2, 5; 462A.38, 
1429.55 	subdivision 2; 462A.39, subdivision 2; 462A.395; 473.145; 473.3999; 473.4051, 
1429.56 	by adding a subdivision; 473.412, subdivisions 2, 3; 473.4465, subdivision 4; 
1429.57 	477A.35, subdivisions 2, 4, 5, 6, by adding a subdivision; 477A.36, subdivisions 
1429.58 	1, as amended, 4, 5, 6, as amended, by adding a subdivision; 609.67, subdivision 
1430.1 	1; Laws 2020, chapter 73, section 8; Laws 2021, First Special Session chapter 5, 
1430.2 	article 1, section 2, subdivision 2; Laws 2021, First Special Session chapter 7, 
1430.3 	article 13, section 68; article 17, section 19, as amended; Laws 2022, chapter 42, 
1430.4 	section 2; Laws 2023, chapter 22, section 4, subdivision 2; Laws 2023, chapter 
1430.5 	37, article 1, section 2, subdivisions 2, 5, 18, 25, 29, 32; article 2, sections 6, 
1430.6 	subdivisions 1, 2, 4, 5, by adding subdivisions; 12, subdivision 2; Laws 2023, 
1430.7 	chapter 41, article 1, sections 2, subdivisions 35, 36, 49, as amended; 4, subdivision 
1430.8 	2; Laws 2023, chapter 43, article 1, sections 2; 4; article 2, section 142, subdivision 
1430.9 	9; Laws 2023, chapter 52, article 19, section 120; Laws 2023, chapter 53, article 
1430.10 	14, section 1; article 19, sections 2, subdivisions 1, 3, 5; 4; article 21, sections 6; 
1430.11 	7; Laws 2023, chapter 57, article 1, section 6; Laws 2023, chapter 60, article 10, 
1430.12 	section 2, subdivision 2; Laws 2023, chapter 61, article 1, sections 60, subdivisions 
1430.13 	1, 2; 67, subdivision 3; article 4, section 11; article 8, sections 1; 2; 3; 8; article 9, 
1430.14 	section 2, subdivisions 5, 14, 16, as amended, 18; Laws 2023, chapter 68, article 
1430.15 	1, sections 3, subdivision 2; 4, subdivision 3; 20; article 4, sections 108; 126; Laws 
1430.16 	2023, chapter 70, article 1, section 35; article 20, sections 2, subdivisions 5, 29, 
1430.17 	31; 3, subdivision 2; 12, as amended; Laws 2024, chapter 79, article 1, sections 
1430.18 	18; 23; 24; 25, subdivision 3; article 10, sections 1; 6; Laws 2024, chapter 80, 
1430.19 	article 2, sections 6, subdivisions 2, 3, by adding subdivisions; 10, subdivision 1; 
1430.20 	Laws 2024, chapter 113, section 1, subdivision 2; 2024 H.F. No. 5237, article 22, 
1430.21 	section 2, subdivisions 4, if enacted, 5, if enacted; proposing coding for new law 
1430.22 	in Minnesota Statutes, chapters 16A; 16B; 62A; 62C; 62D; 62J; 62M; 62Q; 135A; 
1430.23 	136A; 137; 144; 144A; 144E; 144G; 145D; 148; 148B; 148E; 149A; 150A; 151; 
1430.24 	156; 161; 168; 169; 181; 214; 216C; 216G; 219; 245C; 246C; 254B; 256; 256B; 
1430.25 	256S; 268B; 282; 325F; 326B; 341; 346; 430; 462A; proposing coding for new 
1430.26 	law as Minnesota Statutes, chapters 181C; 216I; repealing Minnesota Statutes 
1430.27 	2022, sections 3.7371, subdivision 7; 34.07; 62A.041, subdivision 3; 135A.16; 
1430.28 	144.218, subdivision 3; 144.497; 144E.001, subdivision 5; 144E.01; 144E.123, 
1430.29 	subdivision 5; 144E.27, subdivisions 1, 1a; 144E.50, subdivision 3; 147A.09, 
1430.30 	subdivision 5; 148D.061, subdivision 9; 151.74, subdivision 16; 156.12, subdivision 
1430.31 	6; 168.1297; 179.81; 179.82; 179.83, subdivision 1; 179.84, subdivision 1; 179.85; 
1430.32 	216E.001; 216E.01, subdivisions 1, 2, 3, 4, 5, 7, 8, 9, 10; 216E.02; 216E.021; 
1430.33 	216E.03, subdivisions 2, 3a, 3b, 4, 9; 216E.04, subdivisions 1, 3, 4, 5, 6, 7, 8, 9; 
1430.34 	216E.05, subdivisions 1, 3; 216E.08, subdivisions 1, 4; 216E.18, subdivisions 1, 
1430.35 	2; 216F.01; 216F.011; 216F.012; 216F.015; 216F.02; 216F.03; 216F.05; 216F.06; 
1430.36 	216F.07; 216F.08; 216F.081; 245C.125; 246.41; 252.27, subdivisions 1a, 2, 3, 4a, 
1430.37 	5, 6; 253C.01; 256.043, subdivision 4; 256B.0916, subdivision 10; 256B.79, 
1430.38 	subdivision 6; 256D.19, subdivisions 1, 2; 256D.20, subdivisions 1, 2, 3, 4; 
1430.39 	256D.23, subdivisions 1, 2, 3; 256R.02, subdivision 46; 462A.209, subdivision 8; 
1430.40 	Minnesota Statutes 2023 Supplement, sections 3.855, subdivision 5; 62J.312, 
1430.41 	subdivision 6; 62Q.522, subdivisions 3, 4; 135A.162, subdivision 7; 216E.01, 
1430.42 	subdivisions 3a, 6, 9a; 216E.03, subdivisions 1, 3, 5, 6, 7, 10, 11; 216E.04, 
1430.43 	subdivision 2; 216E.05, subdivision 2; 216F.04; 245C.08, subdivision 2; 246C.03; 
1430.44 	252.27, subdivision 2a; 268B.06, subdivision 7; 268B.08; 268B.10, subdivision 
1430.45 	11; 268B.14, subdivision 5; 477A.35, subdivision 1; Laws 2023, chapter 25, section 
1430.46 	190, subdivision 10; Laws 2023, chapter 37, article 2, section 13; Laws 2024, 
1430.47 	chapter 79, article 4, section 1, subdivision 3; Laws 2024, chapter 80, article 2, 
1430.48 	section 6, subdivision 4; Minnesota Rules, parts 1506.0010; 1506.0015; 1506.0020; 
1430.49 	1506.0025; 1506.0030; 1506.0035; 1506.0040; 5520.0100; 5520.0110; 5520.0120, 
1430.50 	subparts 1, 2, 3, 4, 5, 6, 7; 5520.0200; 5520.0250, subparts 1, 2, 4; 5520.0300; 
1430.51 	5520.0500, subparts 1, 2, 3, 4, 5, 6; 5520.0520; 5520.0540; 5520.0560; 5520.0600; 
1430.52 	5520.0620; 5520.0700; 5520.0710; 5520.0800; 7850.1000; 7850.1100; 7850.1200; 
1430.53 	7850.1300; 7850.1400; 7850.1500; 7850.1600; 7850.1700; 7850.1800; 7850.1900; 
1430.54 	7850.2000; 7850.2100; 7850.2200; 7850.2300; 7850.2400; 7850.2500; 7850.2600; 
1430.55 	7850.2700; 7850.2800; 7850.2900; 7850.3000; 7850.3100; 7850.3200; 7850.3300; 
1430.56 	7850.3400; 7850.3500; 7850.3600; 7850.3700; 7850.3800; 7850.3900; 7850.4100; 
1430.57 	7850.4200; 7850.4500; 7850.4600; 7850.4700; 7850.4800; 7850.4900; 7850.5000; 
1430.58 	7850.5100; 7850.5200; 7850.5300; 7850.5400; 7850.5500; 7850.5600; 7854.0100; 
1431.1 	7854.0200; 7854.0300; 7854.0400; 7854.0500; 7854.0600; 7854.0700; 7854.0800; 
1431.2 	7854.0900; 7854.1000; 7854.1100; 7854.1200; 7854.1300; 7854.1400; 7854.1500.

1432.1	We request the adoption of this report and repassage of the bill.
	
1432.2	House Conferees:
........			
1432.3	........
		........
	
1432.4	Aisha Gomez
		Dave Lislegard
	
1432.5	........
		........
	
1432.6	Esther Agbaje
		Liz Lee
	
1432.7	........
			
1432.8	Matt Norris
			
1432.9	Senate Conferees:
........			
1432.10	........
		........
	
1432.11	Ann Rest
		D. Scott Dibble
	
1432.12	........
		........
	
1432.13	Grant Hauschild
		Aric Putnam
	
1432.14	........
			
1432.15	Bill Weber