1.1 	A bill for an act
1.2 	relating to state government; modifying provisions governing child care, child 
1.3 	safety and permanency, child support, economic assistance, deep poverty, housing 
1.4 	and homelessness, behavioral health, the medical education and research cost 
1.5 	account, MinnesotaCare, the Tribal Elder Office, background studies, and licensing; 
1.6 	making forecast adjustments; requiring reports; transferring money; making 
1.7 	technical and conforming changes; allocating funds for a specific purpose; 
1.8 	establishing certain grants; appropriating money;amending Minnesota Statutes 
1.9 	2022, sections 62A.045; 62A.673, subdivision 2; 62J.692, subdivisions 1, 3, 4, 5, 
1.10 	8; 119B.011, subdivisions 2, 5, 13, 19a; 119B.025, subdivision 4; 119B.03, 
1.11 	subdivision 4a; 119B.125, subdivisions 1, 1a, 1b, 2, 3, 4, 6, 7; 119B.13, subdivisions 
1.12 	1, 6; 119B.16, subdivisions 1c, 3; 119B.161, subdivisions 2, 3; 119B.19, subdivision 
1.13 	7; 145.4716, subdivision 3; 245.095; 245.4889, subdivision 1; 245A.02, subdivision 
1.14 	2c; 245A.04, subdivisions 1, 7, 7a; 245A.05; 245A.055, subdivision 2; 245A.06, 
1.15 	subdivisions 1, 2, 4; 245A.07, subdivision 3, by adding subdivisions; 245A.10, 
1.16 	subdivision 6, by adding a subdivision; 245A.16, by adding a subdivision; 245A.50, 
1.17 	subdivisions 3, 4, 5, 6, 9; 245C.04, subdivision 1; 245C.05, subdivision 4; 245C.10, 
1.18 	subdivisions 1d, 2, 3, 4, 5, 6, 8, 9, 9a, 10, 11, 12, 13, 14, 16, 17, 20, 21, by adding 
1.19 	a subdivision; 245C.17, subdivision 6; 245C.23, subdivision 2; 245C.32, 
1.20 	subdivision 2; 245H.01, subdivision 3, by adding a subdivision; 245H.03, 
1.21 	subdivisions 2, 3, 4; 245H.06, subdivisions 1, 2; 245H.07, subdivisions 1, 2; 
1.22 	245I.20, subdivisions 10, 13, 14, 16; 254B.02, subdivision 5; 254B.05, subdivision 
1.23 	1; 256.046, subdivision 3; 256.0471, subdivision 1; 256.969, subdivisions 2b, 9, 
1.24 	25; 256.983, subdivision 5; 256B.055, subdivision 17; 256B.056, subdivision 7; 
1.25 	256B.0625, subdivisions 5m, 9, 13c, 13e, 28b, 30, by adding a subdivision; 
1.26 	256B.0631, subdivision 1; 256B.0638, subdivisions 1, 2, 4, 5, by adding a 
1.27 	subdivision; 256B.064, subdivision 1a; 256B.0924, subdivision 5; 256B.0941, by 
1.28 	adding a subdivision; 256B.196, subdivision 2; 256B.69, subdivision 5a; 256B.75; 
1.29 	256B.76, subdivisions 1, 2, 4; 256D.01, subdivision 1a; 256D.024, subdivision 1; 
1.30 	256D.03, by adding a subdivision; 256D.06, subdivision 5; 256D.63, subdivision 
1.31 	2; 256E.34, subdivision 4; 256E.35, subdivisions 1, 2, 3, 4a, 6, 7; 256I.03, 
1.32 	subdivisions 7, 13; 256I.04, subdivision 1; 256I.06, subdivisions 6, 8, by adding 
1.33 	a subdivision; 256J.08, subdivisions 71, 79; 256J.21, subdivisions 3, 4; 256J.26, 
1.34 	subdivision 1; 256J.33, subdivisions 1, 2; 256J.37, subdivisions 3, 3a; 256J.95, 
1.35 	subdivision 19; 256K.45, subdivisions 3, 7; 256L.04, subdivisions 1c, 7a, 10, by 
1.36 	adding a subdivision; 256L.07, subdivision 1; 256L.15, subdivision 2; 256P.01, 
1.37 	by adding subdivisions; 256P.02, subdivision 2, by adding a subdivision; 256P.04, 
1.38 	subdivisions 4, 8; 256P.06, subdivision 3, by adding a subdivision; 256P.07, 
2.1 	subdivisions 1, 2, 3, 4, 6, 7, by adding subdivisions; 260.761, subdivision 2; 
2.2 	260C.007, subdivision 14; 260C.451, by adding subdivisions; 260C.452, by adding 
2.3 	a subdivision; 260C.605, subdivision 1, by adding a subdivision; 260C.704; 
2.4 	260E.01; 260E.02, subdivision 1; 260E.03, subdivision 22, by adding subdivisions; 
2.5 	260E.09; 260E.14, subdivisions 2, 5; 260E.17, subdivision 1; 260E.18; 260E.20, 
2.6 	subdivision 2; 260E.24, subdivisions 2, 7; 260E.33, subdivision 1; 260E.35, 
2.7 	subdivision 6; 270B.14, subdivision 1; 297F.10, subdivision 1; 518A.31; 518A.32, 
2.8 	subdivisions 3, 4; 518A.34; 518A.41; 518A.42, subdivisions 1, 3; 518A.65; 
2.9 	518A.77; 609B.425, subdivision 2; 609B.435, subdivision 2; Laws 2020, First 
2.10 	Special Session chapter 7, section 1, subdivision 1, as amended; Laws 2021, First 
2.11 	Special Session chapter 7, article 1, section 36; article 6, section 26; article 16, 
2.12 	section 2, subdivision 32, as amended; article 17, section 5, subdivision 1; proposing 
2.13 	coding for new law in Minnesota Statutes, chapters 119B; 245; 256; 256D; 256E; 
2.14 	256K; 256P; 260; proposing coding for new law as Minnesota Statutes, chapter 
2.15 	245J; repealing Minnesota Statutes 2022, sections 62J.692, subdivisions 4a, 7, 7a; 
2.16 	119B.03, subdivision 4; 137.38, subdivision 1; 245.735, subdivision 3; 245C.02, 
2.17 	subdivision 14b; 245C.032; 245C.11, subdivision 3; 245C.30, subdivision 1a; 
2.18 	256.8799; 256.9864; 256B.69, subdivision 5c; 256J.08, subdivisions 10, 53, 61, 
2.19 	62, 81, 83; 256J.30, subdivisions 5, 7, 8; 256J.33, subdivisions 3, 4, 5; 256J.34, 
2.20 	subdivisions 1, 2, 3, 4; 256J.37, subdivision 10.
2.21 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.22 	ARTICLE 1
2.23 	CHILD CARE

2.24 	Section 1. Minnesota Statutes 2022, section 119B.011, subdivision 2, is amended to read:
2.25 		Subd. 2.Applicant. "Child care fund applicants" means all parents,; stepparents,; legal 
2.26 	guardians, or; eligible relative caregivers who are; relative custodians who accepted a transfer 
2.27 	of permanent legal and physical custody of a child under section 260C.515, subdivision 4, 
2.28 	or similar permanency disposition in Tribal code; successor custodians or guardians as 
2.29 	established by section 256N.22, subdivision 10; or foster parents providing care to a child 
2.30 	placed in a family foster home under section 260C.007, subdivision 16b. Applicants must 
2.31 	be members of the family and reside in the household that applies for child care assistance 
2.32 	under the child care fund.

2.33 	EFFECTIVE DATE. This section is effective August 25, 2024.

2.34 	Sec. 2. Minnesota Statutes 2022, section 119B.011, subdivision 5, is amended to read:
2.35 		Subd. 5.Child care. "Child care" means the care of a child by someone other than a 
2.36 	parent,; stepparent,; legal guardian,; eligible relative caregiver,; relative custodian who 
2.37 	accepted a transfer of permanent legal and physical custody of a child under section 
2.38 	260C.515, subdivision 4, or similar permanency disposition in Tribal code; successor 
2.39 	custodian or guardian as established according to section 256N.22, subdivision 10; foster 
2.40 	parent providing care to a child placed in a family foster home under section 260C.007, 
3.1 	subdivision 16b; or the spouses spouse of any of the foregoing in or outside the child's own 
3.2 	home for gain or otherwise, on a regular basis, for any part of a 24-hour day.

3.3 	EFFECTIVE DATE. This section is effective August 25, 2024.

3.4 	Sec. 3. Minnesota Statutes 2022, section 119B.011, subdivision 13, is amended to read:
3.5 		Subd. 13.Family. "Family" means parents,; stepparents,; guardians and their spouses, 
3.6 	or; other eligible relative caregivers and their spouses,; relative custodians who accepted a 
3.7 	transfer of permanent legal and physical custody of a child under section 260C.515, 
3.8 	subdivision 4, or similar permanency disposition in Tribal code, and their spouses; successor 
3.9 	custodians or guardians as established by section 256N.22, subdivision 10, and their spouses; 
3.10 	foster parents providing care to a child placed in a family foster home under section 
3.11 	260C.007, subdivision 16b, and their spouses; and their blood related the blood-related
3.12 	dependent children and adoptive siblings under the age of 18 years living in the same home 
3.13 	including as any of the above. Family includes children temporarily absent from the 
3.14 	household in settings such as schools, foster care, and residential treatment facilities or 
3.15 	parents, stepparents, guardians and their spouses, or other relative caregivers and their 
3.16 	spouses and adults temporarily absent from the household in settings such as schools, military 
3.17 	service, or rehabilitation programs. An adult family member who is not in an authorized 
3.18 	activity under this chapter may be temporarily absent for up to 60 days. When a minor 
3.19 	parent or parents and his, her, or their child or children are living with other relatives, and 
3.20 	the minor parent or parents apply for a child care subsidy, "family" means only the minor 
3.21 	parent or parents and their child or children. An adult age 18 or older who meets this 
3.22 	definition of family and is a full-time high school or postsecondary student may be considered 
3.23 	a dependent member of the family unit if 50 percent or more of the adult's support is provided 
3.24 	by the parents,; stepparents,; guardians and their spouses; relative custodians who accepted 
3.25 	a transfer of permanent legal and physical custody of a child under section 260C.515, 
3.26 	subdivision 4, or similar permanency disposition in Tribal code, and their spouses; successor 
3.27 	custodians or guardians as established by section 256N.22, subdivision 10, and their spouses; 
3.28 	foster parents providing care to a child placed in a family foster home under section 
3.29 	260C.007, subdivision 16b, and their spouses; or eligible relative caregivers and their spouses 
3.30 	residing in the same household.

3.31 	EFFECTIVE DATE. This section is effective August 25, 2024.

4.1 	Sec. 4. Minnesota Statutes 2022, section 119B.011, subdivision 19a, is amended to read:
4.2 		Subd. 19a.Registration. "Registration" means the process used by a county the 
4.3 	commissioner to determine whether the provider selected by a family applying for or 
4.4 	receiving child care assistance to care for that family's children meets the requirements 
4.5 	necessary for payment of child care assistance for care provided by that provider. The 
4.6 	commissioner shall create a process for statewide registration by April 28, 2025.

4.7 	Sec. 5. Minnesota Statutes 2022, section 119B.03, subdivision 4a, is amended to read:
4.8 		Subd. 4a.Temporary reprioritization Funding priorities. (a) Notwithstanding 
4.9 	subdivision 4 In the event that inadequate funding necessitates the use of waiting lists, 
4.10 	priority for child care assistance under the basic sliding fee assistance program shall be 
4.11 	determined according to this subdivision beginning July 1, 2021, through May 31, 2024.
4.12 	(b) First priority must be given to eligible non-MFIP families who do not have a high 
4.13 	school diploma or commissioner of education-selected high school equivalency certification 
4.14 	or who need remedial and basic skill courses in order to pursue employment or to pursue 
4.15 	education leading to employment and who need child care assistance to participate in the 
4.16 	education program. This includes student parents as defined under section 119B.011, 
4.17 	subdivision 19b. Within this priority, the following subpriorities must be used:
4.18 	(1) child care needs of minor parents;
4.19 	(2) child care needs of parents under 21 years of age; and
4.20 	(3) child care needs of other parents within the priority group described in this paragraph.
4.21 	(c) Second priority must be given to families in which at least one parent is a veteran, 
4.22 	as defined under section 197.447.
4.23 	(d) Third priority must be given to eligible families who do not meet the specifications 
4.24 	of paragraph (b), (c), (e), or (f).
4.25 	(e) Fourth priority must be given to families who are eligible for portable basic sliding 
4.26 	fee assistance through the portability pool under subdivision 9.
4.27 	(f) Fifth priority must be given to eligible families receiving services under section 
4.28 	119B.011, subdivision 20a, if the parents have completed their MFIP or DWP transition 
4.29 	year, or if the parents are no longer receiving or eligible for DWP supports.
4.30 	(g) Families under paragraph (f) must be added to the basic sliding fee waiting list on 
4.31 	the date they complete their transition year under section 119B.011, subdivision 20.

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

5.2 	Sec. 6. Minnesota Statutes 2022, section 119B.125, subdivision 1, is amended to read:
5.3 		Subdivision 1.Authorization. A county or The commissioner must authorize the provider 
5.4 	chosen by an applicant or a participant before the county can authorize payment for care 
5.5 	provided by that provider. The commissioner must establish the requirements necessary for 
5.6 	authorization of providers. A provider must be reauthorized every two years. A legal, 
5.7 	nonlicensed family child care provider also must be reauthorized when another person over 
5.8 	the age of 13 joins the household, a current household member turns 13, or there is reason 
5.9 	to believe that a household member has a factor that prevents authorization. The provider 
5.10 	is required to report all family changes that would require reauthorization. When a provider 
5.11 	has been authorized for payment for providing care for families in more than one county, 
5.12 	the county responsible for reauthorization of that provider is the county of the family with 
5.13 	a current authorization for that provider and who has used the provider for the longest length 
5.14 	of time.

5.15 	Sec. 7. Minnesota Statutes 2022, section 119B.125, subdivision 1a, is amended to read:
5.16 		Subd. 1a.Background study required. (a) This subdivision only applies to legal, 
5.17 	nonlicensed family child care providers.
5.18 	(b) Prior to authorization, and as part of each reauthorization required in subdivision 1, 
5.19 	the county the commissioner shall perform a background study on every member of the 
5.20 	provider's household who is age 13 and older. The county shall also perform a background 
5.21 	study on an individual who has reached age ten but is not yet age 13 and is living in the 
5.22 	household where the nonlicensed child care will be provided when the county has reasonable 
5.23 	cause as defined under section 245C.02, subdivision 15 individuals identified under section 
5.24 	245C.02, subdivision 6a.
5.25 	(c) After authorization, a background study shall also be performed when an individual 
5.26 	identified under section 245C.02, subdivision 6a, joins the household. The provider must 
5.27 	report all family changes that would require a new background study.
5.28 	(d) At each reauthorization, the commissioner shall ensure that a background study 
5.29 	through NETStudy 2.0 has been performed on all individuals in the provider's household 
5.30 	for whom a background study is required under paragraphs (b) and (c).
5.31 	(e) Prior to a background study through NETStudy 2.0 expiring, another background 
5.32 	study shall be completed on all individuals for whom the background study is expiring.

6.1 	Sec. 8. Minnesota Statutes 2022, section 119B.125, subdivision 1b, is amended to read:
6.2 		Subd. 1b.Training required. (a) Effective November 1, 2011, Prior to initial 
6.3 	authorization as required in subdivision 1, a legal nonlicensed family child care provider 
6.4 	must complete first aid and CPR training and provide the verification of first aid and CPR 
6.5 	training to the county commissioner. The training documentation must have valid effective 
6.6 	dates as of the date the registration request is submitted to the county commissioner. The 
6.7 	training must have been provided by an individual approved to provide first aid and CPR 
6.8 	instruction and have included CPR techniques for infants and children.
6.9 	(b) Legal nonlicensed family child care providers with an authorization effective before 
6.10 	November 1, 2011, must be notified of the requirements before October 1, 2011, or at 
6.11 	authorization, and must meet the requirements upon renewal of an authorization that occurs 
6.12 	on or after January 1, 2012.
6.13 	(c) (b) Upon each reauthorization after the authorization period when the initial first aid 
6.14 	and CPR training requirements are met, a legal nonlicensed family child care provider must 
6.15 	provide verification of at least eight hours of additional training listed in the Minnesota 
6.16 	Center for Professional Development Registry.
6.17 	(d) (c) This subdivision only applies to legal nonlicensed family child care providers.

6.18 	EFFECTIVE DATE. This section is effective April 28, 2025.

6.19 	Sec. 9. Minnesota Statutes 2022, section 119B.125, subdivision 2, is amended to read:
6.20 		Subd. 2.Persons who cannot be authorized. (a) The provider seeking authorization 
6.21 	under this section shall collect the information required under section 245C.05, subdivision 
6.22 	1, and forward the information to the county agency commissioner. The background study 
6.23 	must include a review of the information required under section 245C.08, subdivisions 2,
6.24 	subdivision 3, and 4, paragraph (b).
6.25 	(b) A legal nonlicensed family child care provider is not authorized under this section 
6.26 	if:
6.27 	(1) the commissioner determines that any household member who is the subject of a 
6.28 	background study is determined to have a disqualifying characteristic under paragraphs (b) 
6.29 	to (e) or under section 245C.14 or 245C.15. If a county has determined that a provider is 
6.30 	able to be authorized in that county, and a family in another county later selects that provider, 
6.31 	the provider is able to be authorized in the second county without undergoing a new 
6.32 	background investigation unless one of the following conditions exists: disqualified from 
7.1 	direct contact with, or from access to, persons served by the program and that disqualification 
7.2 	has not been set aside or a variance has not been granted under chapter 245C;
7.3 	(1) two years have passed since the first authorization;
7.4 	(2) another person age 13 or older has joined the provider's household since the last 
7.5 	authorization;
7.6 	(3) a current household member has turned 13 since the last authorization; or
7.7 	(4) there is reason to believe that a household member has a factor that prevents 
7.8 	authorization.
7.9 	(b) (2) the person has refused to give written consent for disclosure of criminal history 
7.10 	records.;
7.11 	(c) (3) the person has been denied a family child care license or has received a fine or 
7.12 	a sanction as a licensed child care provider that has not been reversed on appeal.;
7.13 	(d) (4) the person has a family child care licensing disqualification that has not been set 
7.14 	aside.; or
7.15 	(e) (5) the person has admitted or a county has found that there is a preponderance of 
7.16 	evidence that fraudulent information was given to the county for child care assistance 
7.17 	application purposes or was used in submitting child care assistance bills for payment.

7.18 	EFFECTIVE DATE. This section is effective April 28, 2025.

7.19 	Sec. 10. Minnesota Statutes 2022, section 119B.125, subdivision 3, is amended to read:
7.20 		Subd. 3.Authorization exception. When a county the commissioner denies a person 
7.21 	authorization as a legal nonlicensed family child care provider under subdivision 2, the 
7.22 	county commissioner later may authorize that person as a provider if the following conditions 
7.23 	are met:
7.24 	(1) after receiving notice of the denial of the authorization, the person applies for and 
7.25 	obtains a valid child care license issued under chapter 245A, issued by a tribe, or issued by 
7.26 	another state;
7.27 	(2) the person maintains the valid child care license; and
7.28 	(3) the person is providing child care in the state of licensure or in the area under the 
7.29 	jurisdiction of the licensing tribe.

7.30 	EFFECTIVE DATE. This section is effective April 28, 2025.

8.1 	Sec. 11. Minnesota Statutes 2022, section 119B.125, subdivision 4, is amended to read:
8.2 		Subd. 4.Unsafe care. A county The commissioner may deny authorization as a child 
8.3 	care provider to any applicant or rescind authorization of any provider when the a county 
8.4 	or commissioner knows or has reason to believe that the provider is unsafe or that the 
8.5 	circumstances of the chosen child care arrangement are unsafe. The county must include 
8.6 	the conditions under which a provider or care arrangement will be determined to be unsafe 
8.7 	in the county's child care fund plan under section 119B.08, subdivision 3 commissioner 
8.8 	shall introduce statewide criteria for unsafe care by April 28, 2025.

8.9 	EFFECTIVE DATE. This section is effective April 28, 2025.

8.10 	Sec. 12. Minnesota Statutes 2022, section 119B.125, subdivision 6, is amended to read:
8.11 		Subd. 6.Record-keeping requirement. (a) As a condition of payment, all providers 
8.12 	receiving child care assistance payments must:
8.13 	(1) keep accurate and legible daily attendance records at the site where services are 
8.14 	delivered for children receiving child care assistance; and
8.15 	(2) make those records available immediately to the county or the commissioner upon 
8.16 	request. Any records not provided to a county or the commissioner at the date and time of 
8.17 	the request are deemed inadmissible if offered as evidence by the provider in any proceeding 
8.18 	to contest an overpayment or disqualification of the provider.
8.19 	(b) As a condition of payment, attendance records must be completed daily and include 
8.20 	the date, the first and last name of each child in attendance, and the times when each child 
8.21 	is dropped off and picked up. To the extent possible, the times that the child was dropped 
8.22 	off to and picked up from the child care provider must be entered by the person dropping 
8.23 	off or picking up the child. The daily attendance records must be retained at the site where 
8.24 	services are delivered for six years after the date of service.
8.25 	(c) A county or the commissioner may deny or revoke a provider's authorization to 
8.26 	receive child care assistance payments under section 119B.13, subdivision 6, paragraph (d), 
8.27 	pursue a fraud disqualification under section 256.98, take an action against the provider 
8.28 	under chapter 245E, or establish an attendance record overpayment under paragraph (d) 
8.29 	against a current or former provider, When the county or the commissioner knows or has 
8.30 	reason to believe that the a current or former provider has not complied with the 
8.31 	record-keeping requirement in this subdivision.:
8.32 	(1) the commissioner may:
9.1 	(i) deny or revoke a provider's authorization to receive child care assistance payments 
9.2 	under section 119B.13, subdivision 6, paragraph (d);
9.3 	(ii) pursue an administrative disqualification under sections 256.046, subdivision 3, and 
9.4 	256.98; or
9.5 	(iii) take an action against the provider under chapter 245E; or
9.6 	(2) a county or the commissioner may establish an attendance record overpayment under 
9.7 	paragraph (d).
9.8 	(d) To calculate an attendance record overpayment under this subdivision, the 
9.9 	commissioner or county agency shall subtract the maximum daily rate from the total amount 
9.10 	paid to a provider for each day that a child's attendance record is missing, unavailable, 
9.11 	incomplete, inaccurate, or otherwise inadequate.
9.12 	(e) The commissioner shall develop criteria for a county to determine an attendance 
9.13 	record overpayment under this subdivision.

9.14 	EFFECTIVE DATE. This section is effective April 28, 2025.

9.15 	Sec. 13. Minnesota Statutes 2022, section 119B.125, subdivision 7, is amended to read:
9.16 		Subd. 7.Failure to comply with attendance record requirements. (a) In establishing 
9.17 	an overpayment claim for failure to provide attendance records in compliance with 
9.18 	subdivision 6, the county or commissioner is limited to the six years prior to the date the 
9.19 	county or the commissioner requested the attendance records.
9.20 	(b) The commissioner or county may periodically audit child care providers to determine 
9.21 	compliance with subdivision 6.
9.22 	(c) When the commissioner or county establishes an overpayment claim against a current 
9.23 	or former provider, the commissioner or county must provide notice of the claim to the 
9.24 	provider. A notice of overpayment claim must specify the reason for the overpayment, the 
9.25 	authority for making the overpayment claim, the time period in which the overpayment 
9.26 	occurred, the amount of the overpayment, and the provider's right to appeal.
9.27 	(d) The commissioner or county shall seek to recoup or recover overpayments paid to 
9.28 	a current or former provider.
9.29 	(e) When a provider has been disqualified or convicted of fraud under section 256.98, 
9.30 	theft under section 609.52, or a federal crime relating to theft of state funds or fraudulent 
9.31 	billing for a program administered by the commissioner or a county, recoupment or recovery 
9.32 	must be sought regardless of the amount of overpayment.

10.1 	EFFECTIVE DATE. This section is effective April 28, 2025.

10.2 	Sec. 14. Minnesota Statutes 2022, section 119B.13, subdivision 1, is amended to read:
10.3 		Subdivision 1.Subsidy restrictions. (a) Beginning November 15, 2021 October 30, 
10.4 	2023, the maximum rate paid for child care assistance in any county or county price cluster 
10.5 	under the child care fund shall be:
10.6 	(1) for all infants and toddlers, the greater of the 40th 75th percentile of the 2021 child 
10.7 	care provider rate survey or the rates in effect at the time of the update; and.
10.8 	(2) for all preschool and school-age children, the greater of the 30th percentile of the 
10.9 	2021 child care provider rate survey or the rates in effect at the time of the update.
10.10 	(b) Beginning the first full service period on or after January 1, 2025, and every three 
10.11 	years thereafter, the maximum rate paid for child care assistance in a county or county price 
10.12 	cluster under the child care fund shall be:
10.13 	(1) for all infants and toddlers, the greater of the 40th 75th percentile of the 2024 most 
10.14 	recent child care provider rate survey or the rates in effect at the time of the update; and.
10.15 	(2) for all preschool and school-age children, the greater of the 30th percentile of the 
10.16 	2024 child care provider rate survey or the rates in effect at the time of the update.
10.17 	The rates under paragraph (a) continue until the rates under this paragraph go into effect.
10.18 	(c) For a child care provider located within the boundaries of a city located in two or 
10.19 	more of the counties of Benton, Sherburne, and Stearns, the maximum rate paid for child 
10.20 	care assistance shall be equal to the maximum rate paid in the county with the highest 
10.21 	maximum reimbursement rates or the provider's charge, whichever is less. The commissioner 
10.22 	may: (1) assign a county with no reported provider prices to a similar price cluster; and (2) 
10.23 	consider county level access when determining final price clusters.
10.24 	(d) A rate which includes a special needs rate paid under subdivision 3 may be in excess 
10.25 	of the maximum rate allowed under this subdivision.
10.26 	(e) The department shall monitor the effect of this paragraph on provider rates. The 
10.27 	county shall pay the provider's full charges for every child in care up to the maximum 
10.28 	established. The commissioner shall determine the maximum rate for each type of care on 
10.29 	an hourly, full-day, and weekly basis, including special needs and disability care.
10.30 	(f) If a child uses one provider, the maximum payment for one day of care must not 
10.31 	exceed the daily rate. The maximum payment for one week of care must not exceed the 
10.32 	weekly rate.
11.1 	(g) If a child uses two providers under section 119B.097, the maximum payment must 
11.2 	not exceed:
11.3 	(1) the daily rate for one day of care;
11.4 	(2) the weekly rate for one week of care by the child's primary provider; and
11.5 	(3) two daily rates during two weeks of care by a child's secondary provider.
11.6 	(h) Child care providers receiving reimbursement under this chapter must not be paid 
11.7 	activity fees or an additional amount above the maximum rates for care provided during 
11.8 	nonstandard hours for families receiving assistance.
11.9 	(i) If the provider charge is greater than the maximum provider rate allowed, the parent 
11.10 	is responsible for payment of the difference in the rates in addition to any family co-payment 
11.11 	fee.
11.12 	(j) Beginning October 30, 2023, the maximum registration fee paid for child care 
11.13 	assistance in any county or county price cluster under the child care fund shall be set as 
11.14 	follows: (1) beginning November 15, 2021, the greater of the 40th 75th percentile of the 
11.15 	2021 most recent child care provider rate survey or the registration fee in effect at the time 
11.16 	of the update; and (2) beginning the first full service period on or after January 1, 2025, the 
11.17 	maximum registration fee shall be the greater of the 40th percentile of the 2024 child care 
11.18 	provider rate survey or the registration fee in effect at the time of the update. The registration 
11.19 	fees under clause (1) continue until the registration fees under clause (2) go into effect.
11.20 	(k) Maximum registration fees must be set for licensed family child care and for child 
11.21 	care centers. For a child care provider located in the boundaries of a city located in two or 
11.22 	more of the counties of Benton, Sherburne, and Stearns, the maximum registration fee paid 
11.23 	for child care assistance shall be equal to the maximum registration fee paid in the county 
11.24 	with the highest maximum registration fee or the provider's charge, whichever is less.

11.25 	Sec. 15. Minnesota Statutes 2022, section 119B.13, subdivision 6, is amended to read:
11.26 		Subd. 6.Provider payments. (a) A provider shall bill only for services documented 
11.27 	according to section 119B.125, subdivision 6. The provider shall bill for services provided 
11.28 	within ten days of the end of the service period. Payments under the child care fund shall 
11.29 	be made within 21 days of receiving a complete bill from the provider. Counties or the state 
11.30 	may establish policies that make payments on a more frequent basis.
11.31 	(b) If a provider has received an authorization of care and been issued a billing form for 
11.32 	an eligible family, the bill must be submitted within 60 days of the last date of service on 
12.1 	the bill. A bill submitted more than 60 days after the last date of service must be paid if the 
12.2 	county determines that the provider has shown good cause why the bill was not submitted 
12.3 	within 60 days. Good cause must be defined in the county's child care fund plan under 
12.4 	section 119B.08, subdivision 3, and the definition of good cause must include county error. 
12.5 	Any bill submitted more than a year after the last date of service on the bill must not be 
12.6 	paid.
12.7 	(c) If a provider provided care for a time period without receiving an authorization of 
12.8 	care and a billing form for an eligible family, payment of child care assistance may only be 
12.9 	made retroactively for a maximum of three months from the date the provider is issued an 
12.10 	authorization of care and a billing form. For a family at application, if a provider provided 
12.11 	child care during a time period without receiving an authorization of care and a billing form, 
12.12 	a county may only make child care assistance payments to the provider retroactively from 
12.13 	the date that child care began, or from the date that the family's eligibility began under 
12.14 	section 119B.09, subdivision 7, or from the date that the family meets authorization 
12.15 	requirements, not to exceed six months from the date that the provider is issued an 
12.16 	authorization of care and a billing form, whichever is later.
12.17 	(d) A county or The commissioner may refuse to issue a child care authorization to a 
12.18 	certified, licensed, or legal nonlicensed provider, revoke an existing child care authorization 
12.19 	to a certified, licensed, or legal nonlicensed provider, stop payment issued to a certified, 
12.20 	licensed, or legal nonlicensed provider, or refuse to pay a bill submitted by a certified, 
12.21 	licensed, or legal nonlicensed provider if:
12.22 	(1) the provider admits to intentionally giving the county materially false information 
12.23 	on the provider's billing forms;
12.24 	(2) a county or the commissioner finds by a preponderance of the evidence that the 
12.25 	provider intentionally gave the county materially false information on the provider's billing 
12.26 	forms, or provided false attendance records to a county or the commissioner;
12.27 	(3) the provider is in violation of child care assistance program rules, until the agency 
12.28 	determines those violations have been corrected;
12.29 	(4) the provider is operating after:
12.30 	(i) an order of suspension of the provider's license issued by the commissioner;
12.31 	(ii) an order of revocation of the provider's license issued by the commissioner; or
12.32 	(iii) an order of decertification issued to the provider;
13.1 	(5) the provider submits false attendance reports or refuses to provide documentation 
13.2 	of the child's attendance upon request;
13.3 	(6) the provider gives false child care price information; or
13.4 	(7) the provider fails to report decreases in a child's attendance as required under section 
13.5 	119B.125, subdivision 9.
13.6 	(e) For purposes of paragraph (d), clauses (3), (5), (6), and (7), the county or the 
13.7 	commissioner may withhold the provider's authorization or payment for a period of time 
13.8 	not to exceed three months beyond the time the condition has been corrected.
13.9 	(f) A county's payment policies must be included in the county's child care plan under 
13.10 	section 119B.08, subdivision 3. If payments are made by the state, in addition to being in 
13.11 	compliance with this subdivision, the payments must be made in compliance with section 
13.12 	16A.124.
13.13 	(g) If the commissioner or responsible county agency suspends or refuses payment to a 
13.14 	provider under paragraph (d), clause (1) or (2), or chapter 245E and the provider has:
13.15 	(1) a disqualification for wrongfully obtaining assistance under section 256.98, 
13.16 	subdivision 8, paragraph (c);
13.17 	(2) an administrative disqualification under section 256.046, subdivision 3; or
13.18 	(3) a termination under section 245E.02, subdivision 4, paragraph (c), clause (4), or 
13.19 	245E.06;
13.20 	then the provider forfeits the payment to the commissioner or the responsible county agency, 
13.21 	regardless of the amount assessed in an overpayment, charged in a criminal complaint, or 
13.22 	ordered as criminal restitution.

13.23 	EFFECTIVE DATE. This section is effective April 28, 2025.

13.24 	Sec. 16. Minnesota Statutes 2022, section 119B.16, subdivision 1c, is amended to read:
13.25 		Subd. 1c.Notice to providers. (a) Before taking an action appealable under subdivision 
13.26 	1a, paragraph (b), a county agency or the commissioner must mail written notice to the 
13.27 	provider against whom the action is being taken. Unless otherwise specified under this 
13.28 	chapter, chapter 245E, or Minnesota Rules, chapter 3400, a county agency or the 
13.29 	commissioner must mail the written notice at least 15 calendar days before the adverse 
13.30 	action's effective date.
14.1 	(b) The notice shall state (1) the factual basis for the county agency or department's 
14.2 	determination, (2) the action the county agency or department intends to take, (3) the dollar 
14.3 	amount of the monetary recovery or recoupment, if known, and (4) the provider's right to 
14.4 	appeal the department's proposed action.

14.5 	EFFECTIVE DATE. This section is effective April 28, 2025.

14.6 	Sec. 17. Minnesota Statutes 2022, section 119B.16, subdivision 3, is amended to read:
14.7 		Subd. 3.Fair hearing stayed. (a) If a county agency or the commissioner denies or 
14.8 	revokes a provider's authorization based on a licensing action under section 245A.07, and 
14.9 	the provider appeals, the provider's fair hearing must be stayed until the commissioner issues 
14.10 	an order as required under section 245A.08, subdivision 5.
14.11 	(b) If the commissioner denies or revokes a provider's authorization based on 
14.12 	decertification under section 245H.07, and the provider appeals, the provider's fair hearing 
14.13 	must be stayed until the commissioner issues a final order as required under section 245H.07.

14.14 	EFFECTIVE DATE. This section is effective April 28, 2025.

14.15 	Sec. 18. Minnesota Statutes 2022, section 119B.161, subdivision 2, is amended to read:
14.16 		Subd. 2.Notice. (a) A county agency or The commissioner must mail written notice to 
14.17 	a provider within five days of suspending payment or denying or revoking the provider's 
14.18 	authorization under subdivision 1.
14.19 	(b) The notice must:
14.20 	(1) state the provision under which a county agency or the commissioner is denying, 
14.21 	revoking, or suspending the provider's authorization or suspending payment to the provider;
14.22 	(2) set forth the general allegations leading to the denial, revocation, or suspension of 
14.23 	the provider's authorization. The notice need not disclose any specific information concerning 
14.24 	an ongoing investigation;
14.25 	(3) state that the denial, revocation, or suspension of the provider's authorization is for 
14.26 	a temporary period and explain the circumstances under which the action expires; and
14.27 	(4) inform the provider of the right to submit written evidence and argument for 
14.28 	consideration by the commissioner.
14.29 	(c) Notwithstanding Minnesota Rules, part 3400.0185, if a county agency or the 
14.30 	commissioner suspends payment to a provider under chapter 245E or denies or revokes a 
14.31 	provider's authorization under section 119B.13, subdivision 6, paragraph (d), clause (1) or 
15.1 	(2), a county agency or the commissioner must send notice of service authorization closure 
15.2 	to each affected family. The notice sent to an affected family is effective on the date the 
15.3 	notice is created.

15.4 	EFFECTIVE DATE. This section is effective April 28, 2025.

15.5 	Sec. 19. Minnesota Statutes 2022, section 119B.161, subdivision 3, is amended to read:
15.6 		Subd. 3.Duration. If a provider's payment is suspended under chapter 245E or a 
15.7 	provider's authorization is denied or revoked under section 119B.13, subdivision 6, paragraph 
15.8 	(d), clause (1) or (2), the provider's denial, revocation, temporary suspension, or payment 
15.9 	suspension remains in effect until:
15.10 	(1) the commissioner or a law enforcement authority determines that there is insufficient 
15.11 	evidence warranting the action and a county agency or the commissioner does not pursue 
15.12 	an additional administrative remedy under chapter 245E or section 256.98; or
15.13 	(2) all criminal, civil, and administrative proceedings related to the provider's alleged 
15.14 	misconduct conclude and any appeal rights are exhausted.

15.15 	EFFECTIVE DATE. This section is effective April 28, 2025.

15.16 	Sec. 20. Minnesota Statutes 2022, section 119B.19, subdivision 7, is amended to read:
15.17 		Subd. 7.Child care resource and referral programs. Within each region, a child care 
15.18 	resource and referral program must:
15.19 	(1) maintain one database of all existing child care resources and services and one 
15.20 	database of family referrals;
15.21 	(2) provide a child care referral service for families;
15.22 	(3) develop resources to meet the child care service needs of families;
15.23 	(4) increase the capacity to provide culturally responsive child care services;
15.24 	(5) coordinate professional development opportunities for child care and school-age 
15.25 	care providers;
15.26 	(6) administer and award child care services grants;
15.27 	(7) cooperate with the Minnesota Child Care Resource and Referral Network and its 
15.28 	member programs to develop effective child care services and child care resources; and
15.29 	(8) assist in fostering coordination, collaboration, and planning among child care programs 
15.30 	and community programs such as school readiness, Head Start, early childhood family 
16.1 	education, local interagency early intervention committees, early childhood screening, 
16.2 	special education services, and other early childhood care and education services and 
16.3 	programs that provide flexible, family-focused services to families with young children to 
16.4 	the extent possible.;
16.5 	(9) administer the child care one-stop regional assistance network to assist child care 
16.6 	providers and individuals interested in becoming child care providers with establishing and 
16.7 	sustaining a licensed family child care or group family child care program or a child care 
16.8 	center; and
16.9 	(10) provide supports that enable economically challenged individuals to obtain the jobs 
16.10 	skills training, career counseling, and job placement assistance necessary to begin a career 
16.11 	path in child care.

16.12 	Sec. 21. [119B.27] CHILD CARE RETENTION PROGRAM.
16.13 		Subdivision 1.Establishment. A child care retention program is established to provide 
16.14 	eligible child care programs with payments to improve access to child care in Minnesota 
16.15 	and to strengthen the ability of child care programs to recruit and retain qualified early 
16.16 	educators to work in child care programs. The child care retention program shall be 
16.17 	administered by the commissioner of human services.
16.18 		Subd. 2.Eligible programs. (a) The following programs are eligible to receive child 
16.19 	care retention payments under this section:
16.20 	(1) family and group family child care homes licensed under Minnesota Rules, chapter 
16.21 	9502;
16.22 	(2) child care centers licensed under Minnesota Rules, chapter 9503;
16.23 	(3) certified license-exempt child care centers under chapter 245H;
16.24 	(4) Tribally licensed child care programs; and
16.25 	(5) other programs as determined by the commissioner.
16.26 	(b) To be eligible, programs must not be:
16.27 	(1) the subject of a finding of fraud for which the program or individual is currently 
16.28 	serving a penalty or exclusion;
16.29 	(2) the subject of suspended, denied, or terminated payments to a provider under section 
16.30 	256.98, subdivision 1; 119B.13, subdivision 6, paragraph (d), clauses (1) and (2); or 245E.02, 
16.31 	subdivision 4, paragraph (c), clause (4), regardless of whether the action is under appeal;
17.1 	(3) prohibited from receiving public funds under section 245.095, regardless of whether 
17.2 	the action is under appeal; or
17.3 	(4) under license revocation, suspension, temporary immediate suspension, or 
17.4 	decertification, regardless of whether the action is under appeal.
17.5 		Subd. 3.Requirements. (a) As a condition of payment, all providers receiving retention 
17.6 	payments under this section must:
17.7 	(1) complete an application developed by the commissioner for each payment period 
17.8 	for which the eligible program applies for funding;
17.9 	(2) attest and agree in writing that the program intends to remain operating and serving 
17.10 	a minimum number of children, as determined by the commissioner, for the duration of the 
17.11 	payment period, with the exceptions of:
17.12 	(i) service disruptions that are necessary to protect the safety and health of children and 
17.13 	child care programs based on public health guidance issued by the Centers for Disease 
17.14 	Control and Prevention, the commissioner of health, the commissioner of human services, 
17.15 	or a local public health agency; and
17.16 	(ii) planned temporary closures for provider vacation and holidays during each payment 
17.17 	period. The maximum allowed duration of vacations and holidays must be established by 
17.18 	the commissioner.
17.19 	(b) Funds received under this section must be expended by a provider no later than six 
17.20 	months after the date the payment was received.
17.21 	(c) Recipients must comply with all requirements listed in the application under this 
17.22 	section. Methods for demonstrating that requirements have been met shall be determined 
17.23 	by the commissioner.
17.24 	(d) Recipients must keep accurate and legible records of the following at the site where 
17.25 	services are delivered:
17.26 	(1) use of money;
17.27 	(2) attendance records. Daily attendance records must be completed every day and 
17.28 	include the date, the first and last name of each child in attendance, and the times when 
17.29 	each child is dropped off and picked up. To the extent possible, the times that the child was 
17.30 	dropped off and picked up from the child care provider must be entered by the person 
17.31 	dropping off or picking up the child; and
18.1 	(3) staff employment, compensation, and benefits records. Employment, compensation, 
18.2 	and benefits records must include time sheets or other records of daily hours worked and 
18.3 	documentation of compensation and benefits.
18.4 	(e) The requirement to document compensation and benefits only applies to family child 
18.5 	care providers if retention payment funds are used for compensation and benefits.
18.6 	(f) All records must be retained at the site where services are delivered for six years after 
18.7 	the date of receipt of payment and be made immediately available to the commissioner upon 
18.8 	request. Any records not provided to the commissioner at the date and time of the request 
18.9 	are deemed inadmissible if offered as evidence by a provider in any proceeding to contest 
18.10 	an overpayment or disqualification of the provider.
18.11 	(g) Recipients that fail to meet the requirements under this section are subject to 
18.12 	discontinuation of future installment payments, recovery of overpayments, and actions under 
18.13 	chapter 245E. Except when based on a finding of fraud, actions to establish an overpayment 
18.14 	must be made within six years of receipt of the payments. Once an overpayment is 
18.15 	established, collection may continue until funds have been repaid in full. The appeal process 
18.16 	under section 119B.16 applies to actions taken for failure to meet the requirements of this 
18.17 	section.
18.18 		Subd. 4.Providing payments. (a) The commissioner shall provide retention payments 
18.19 	under this section to all eligible programs on a noncompetitive basis.
18.20 	(b) The commissioner shall award retention payments to all eligible programs. The 
18.21 	payment amounts shall be based on the number of full-time equivalent staff who regularly 
18.22 	care for children in the program, including any employees, sole proprietors, or independent 
18.23 	contractors.
18.24 	(c) One full-time equivalent is defined as an individual caring for children 32 hours per 
18.25 	week. An individual can count as more or less than one full-time equivalent staff, but as no 
18.26 	more than two full-time equivalent staff.
18.27 	(d) The amount awarded per full-time equivalent individual caring for children for each 
18.28 	payment type must be established by the commissioner.
18.29 	(e) Payments must be increased by 25 percent for providers receiving payments through 
18.30 	the child care assistance programs under section 119B.03 or 119B.05 or early learning 
18.31 	scholarships under section 124D.165 or whose program is located in a child care access 
18.32 	equity area. Child care access equity areas are areas with low access to child care, high 
18.33 	poverty rates, high unemployment rates, low home ownership rates, and low median 
19.1 	household incomes. The commissioner must develop a method for establishing child care 
19.2 	access equity areas.
19.3 	(f) The commissioner shall make payments to eligible programs under this section in 
19.4 	the form, frequency, and manner established by the commissioner.
19.5 		Subd. 5.Eligible uses of money. (a) Recipients that are child care centers licensed under 
19.6 	Minnesota Rules, chapter 9503; certified license-exempt child care centers under chapter 
19.7 	245H; or Tribally licensed child care centers must use money provided under this section 
19.8 	to pay for increases in compensation, benefits, premium pay, or additional federal taxes 
19.9 	assessed on the compensation of employees as a result of paying increased compensation 
19.10 	or premium pay to all paid employees or independent contractors regularly caring for 
19.11 	children. The increases in this paragraph must occur no less frequently than once per year.
19.12 	(b) Recipients that are family and group family child care homes licensed under 
19.13 	Minnesota Rules, chapter 9502, or are Tribally licensed family child care homes shall use 
19.14 	money provided under this section for one or more of the following uses:
19.15 	(1) paying personnel costs, such as payroll, salaries, or similar compensation; employee 
19.16 	benefits; premium pay; or employee recruitment and retention for an employee, including 
19.17 	a sole proprietor or an independent contractor;
19.18 	(2) paying rent, including rent under a lease agreement, or making payments on any 
19.19 	mortgage obligation, utilities, facility maintenance or improvements, or insurance;
19.20 	(3) purchasing or updating equipment, supplies, goods, or services;
19.21 	(4) providing mental health supports for children; or
19.22 	(5) purchasing training or other professional development.
19.23 		Subd. 6.Legal nonlicensed child care provider payments. (a) Legal nonlicensed child 
19.24 	care providers, as defined in section 119B.011, subdivision 16, may be eligible to apply for 
19.25 	a payment of up to $500 for costs incurred before the first month when payments from the 
19.26 	child care assistance program are issued.
19.27 	(b) Payments must be used on one or more of the following eligible activities to meet 
19.28 	child care assistance program requirements under sections 119B.03 and 119B.05:
19.29 	(1) purchasing or updating equipment, supplies, goods, or services; or
19.30 	(2) purchasing training or other professional development.
19.31 	(c) The commissioner shall determine the form and manner of the application for a 
19.32 	payment under this subdivision.
20.1 		Subd. 7.Carryforward authority. Funds appropriated under this section are available 
20.2 	until expended.
20.3 		Subd. 8.Report. By January 1 each year, the commissioner must report to the chairs 
20.4 	and ranking minority members of the legislative committees with jurisdiction over child 
20.5 	care the number of payments provided to recipients and outcomes of the retention payment 
20.6 	program since the last report. This subdivision expires January 31, 2033.

20.7 	Sec. 22. [119B.28] SHARED SERVICES GRANTS.
20.8 	(a) The commissioner of human services shall establish a grant program to distribute 
20.9 	funds for the planning, establishment, expansion, improvement, or operation of shared 
20.10 	services alliances to allow family child care providers to achieve economies of scale. The 
20.11 	commissioner must develop a process to fund organizations to operate shared services 
20.12 	alliances that includes application forms, timelines, and standards for renewal. For purposes 
20.13 	of this section, "shared services alliances" means networks of licensed family child care 
20.14 	providers that share services to reduce costs and achieve efficiencies.
20.15 	(b) Programs eligible to be a part of the shared services alliances supported through this 
20.16 	grant program include:
20.17 	(1) family child care or group family child care homes licensed under Minnesota Rules, 
20.18 	chapter 9502;
20.19 	(2) Tribally licensed family child care or group family child care; and
20.20 	(3) individuals in the process of starting a family child care or group family child care 
20.21 	home.
20.22 	(c) Eligible applicants include public entities and private for-profit and nonprofit 
20.23 	organizations.
20.24 	(d) Grantees shall use the grant funds to deliver one or more of the following services:
20.25 	(1) pooling the management of payroll and benefits, banking, janitorial services, food 
20.26 	services, and other operations;
20.27 	(2) shared administrative staff for tasks such as record keeping and reporting for programs 
20.28 	such as the child care assistance program, Head Start, the child and adult care food program, 
20.29 	and early learning scholarships;
20.30 	(3) coordination of bulk purchasing;
20.31 	(4) management of a substitute pool;
21.1 	(5) support for implementing shared curriculum and assessments;
21.2 	(6) mentoring child care provider participants to improve business practices;
21.3 	(7) provision of and training in child care management software to simplify processes 
21.4 	such as enrollment, billing, and tracking expenditures;
21.5 	(8) support for a group of providers sharing one or more physical spaces within a larger 
21.6 	building; or
21.7 	(9) other services as determined by the commissioner.
21.8 	(e) The commissioner must develop a process by which grantees will report to the 
21.9 	Department of Human Services on activities funded by the grant.

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

21.11 	Sec. 23. [119B.29] CHILD CARE PROVIDER ACCESS TO TECHNOLOGY 
21.12 	GRANTS.
21.13 	(a) The commissioner of human services shall distribute money provided by this section 
21.14 	through grants to one or more organizations to offer grants or other supports to child care 
21.15 	providers for technology intended to improve the providers' business practices. The 
21.16 	commissioner must develop a process to fund organizations to provide technology supports 
21.17 	that includes application forms, timelines, reporting requirements, and standards for renewal.
21.18 	(b) Programs eligible to be supported through this grant program include:
21.19 	(1) child care centers licensed under Minnesota Rules, chapter 9503;
21.20 	(2) family or group family child care homes licensed under Minnesota Rules, chapter 
21.21 	9502; and
21.22 	(3) Tribally licensed centers, family child care, and group family child care.
21.23 	(c) Eligible applicants include public entities and private for-profit and nonprofit 
21.24 	organizations with the ability to develop technology products for child care business 
21.25 	management or offer training, technical assistance, coaching, or other supports for child 
21.26 	care providers to use technology products for child care business management.
21.27 	(d) Grantees shall use the grant funds, either directly or through grants to providers, for 
21.28 	one or more of the following purposes:
21.29 	(1) the purchase of computers or mobile devices for use in business management;
22.1 	(2) access to the Internet through the provision of necessary hardware such as routers 
22.2 	or modems or by covering the costs of monthly fees for Internet access;
22.3 	(3) covering the costs of subscription to child care management software;
22.4 	(4) covering the costs of training in the use of technology for business management 
22.5 	purposes; and
22.6 	(5) other services as determined by the commissioner.

22.7 	Sec. 24. Minnesota Statutes 2022, section 245C.04, subdivision 1, is amended to read:
22.8 		Subdivision 1.Licensed programs; other child care programs. (a) The commissioner 
22.9 	shall conduct a background study of an individual required to be studied under section 
22.10 	245C.03, subdivision 1, at least upon application for initial license for all license types.
22.11 	(b) The commissioner shall conduct a background study of an individual required to be 
22.12 	studied under section 245C.03, subdivision 1, including a child care background study 
22.13 	subject as defined in section 245C.02, subdivision 6a, in a family child care program, licensed 
22.14 	child care center, certified license-exempt child care center, or legal nonlicensed child care 
22.15 	provider, on a schedule determined by the commissioner. Except as provided in section 
22.16 	245C.05, subdivision 5a, a child care background study must include submission of 
22.17 	fingerprints for a national criminal history record check and a review of the information 
22.18 	under section 245C.08. A background study for a child care program must be repeated 
22.19 	within five years from the most recent study conducted under this paragraph.
22.20 	(c) At reauthorization or when a new background study is needed under section 119B.125, 
22.21 	subdivision 1a, for a legal nonlicensed child care provider authorized under chapter 119B:
22.22 	(1) for a background study affiliated with a legal nonlicensed child care provider, the 
22.23 	individual shall provide information required under section 245C.05, subdivision 1, 
22.24 	paragraphs (a), (b), and (d), to the commissioner and be fingerprinted and photographed 
22.25 	under section 245C.05, subdivision 5; and
22.26 	(2) the commissioner shall verify the information received under clause (1) and submit 
22.27 	the request in NETStudy 2.0 to complete the background study.
22.28 	(c) (d) At reapplication for a family child care license:
22.29 	(1) for a background study affiliated with a licensed family child care center or legal 
22.30 	nonlicensed child care provider, the individual shall provide information required under 
22.31 	section 245C.05, subdivision 1, paragraphs (a), (b), and (d), to the county agency, and be 
22.32 	fingerprinted and photographed under section 245C.05, subdivision 5;
23.1 	(2) the county agency shall verify the information received under clause (1) and forward 
23.2 	the information to the commissioner and submit the request in NETStudy 2.0 to complete 
23.3 	the background study; and
23.4 	(3) the background study conducted by the commissioner under this paragraph must 
23.5 	include a review of the information required under section 245C.08.
23.6 	(d) (e) The commissioner is not required to conduct a study of an individual at the time 
23.7 	of reapplication for a license if the individual's background study was completed by the 
23.8 	commissioner of human services and the following conditions are met:
23.9 	(1) a study of the individual was conducted either at the time of initial licensure or when 
23.10 	the individual became affiliated with the license holder;
23.11 	(2) the individual has been continuously affiliated with the license holder since the last 
23.12 	study was conducted; and
23.13 	(3) the last study of the individual was conducted on or after October 1, 1995.
23.14 	(e) (f) The commissioner of human services shall conduct a background study of an 
23.15 	individual specified under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6), 
23.16 	who is newly affiliated with a child foster family setting license holder:
23.17 	(1) the county or private agency shall collect and forward to the commissioner the 
23.18 	information required under section 245C.05, subdivisions 1 and 5, when the child foster 
23.19 	family setting applicant or license holder resides in the home where child foster care services 
23.20 	are provided; and
23.21 	(2) the background study conducted by the commissioner of human services under this 
23.22 	paragraph must include a review of the information required under section 245C.08, 
23.23 	subdivisions 1, 3, and 4.
23.24 	(f) (g) The commissioner shall conduct a background study of an individual specified 
23.25 	under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6), who is newly affiliated 
23.26 	with an adult foster care or family adult day services and with a family child care license 
23.27 	holder or a legal nonlicensed child care provider authorized under chapter 119B and:
23.28 	(1) except as provided in section 245C.05, subdivision 5a, the county shall collect and 
23.29 	forward to the commissioner the information required under section 245C.05, subdivision 
23.30 	1, paragraphs (a) and (b), and subdivision 5, paragraph (b), for background studies conducted 
23.31 	by the commissioner for all family adult day services, for adult foster care when the adult 
23.32 	foster care license holder resides in the adult foster care residence, and for family child care 
23.33 	and legal nonlicensed child care authorized under chapter 119B;
24.1 	(2) the license holder shall collect and forward to the commissioner the information 
24.2 	required under section 245C.05, subdivisions 1, paragraphs (a) and (b); and 5, paragraphs 
24.3 	(a) and (b), for background studies conducted by the commissioner for adult foster care 
24.4 	when the license holder does not reside in the adult foster care residence; and
24.5 	(3) the background study conducted by the commissioner under this paragraph must 
24.6 	include a review of the information required under section 245C.08, subdivision 1, paragraph 
24.7 	(a), and subdivisions 3 and 4.
24.8 	(g) (h) Applicants for licensure, license holders, and other entities as provided in this 
24.9 	chapter must submit completed background study requests to the commissioner using the 
24.10 	electronic system known as NETStudy before individuals specified in section 245C.03, 
24.11 	subdivision 1, begin positions allowing direct contact in any licensed program.
24.12 	(h) (i) For an individual who is not on the entity's active roster, the entity must initiate 
24.13 	a new background study through NETStudy when:
24.14 	(1) an individual returns to a position requiring a background study following an absence 
24.15 	of 120 or more consecutive days; or
24.16 	(2) a program that discontinued providing licensed direct contact services for 120 or 
24.17 	more consecutive days begins to provide direct contact licensed services again.
24.18 	The license holder shall maintain a copy of the notification provided to the commissioner 
24.19 	under this paragraph in the program's files. If the individual's disqualification was previously 
24.20 	set aside for the license holder's program and the new background study results in no new 
24.21 	information that indicates the individual may pose a risk of harm to persons receiving 
24.22 	services from the license holder, the previous set-aside shall remain in effect.
24.23 	(i) (j) For purposes of this section, a physician licensed under chapter 147, advanced 
24.24 	practice registered nurse licensed under chapter 148, or physician assistant licensed under 
24.25 	chapter 147A is considered to be continuously affiliated upon the license holder's receipt 
24.26 	from the commissioner of health or human services of the physician's, advanced practice 
24.27 	registered nurse's, or physician assistant's background study results.
24.28 	(j) (k) For purposes of family child care, a substitute caregiver must receive repeat 
24.29 	background studies at the time of each license renewal.
24.30 	(k) (l) A repeat background study at the time of license renewal is not required if the 
24.31 	family child care substitute caregiver's background study was completed by the commissioner 
24.32 	on or after October 1, 2017, and the substitute caregiver is on the license holder's active 
24.33 	roster in NETStudy 2.0.
25.1 	(l) (m) Before and after school programs authorized under chapter 119B, are exempt 
25.2 	from the background study requirements under section 123B.03, for an employee for whom 
25.3 	a background study under this chapter has been completed.

25.4 	EFFECTIVE DATE. This section is effective April 28, 2025.

25.5 	Sec. 25. Minnesota Statutes 2022, section 245C.05, subdivision 4, is amended to read:
25.6 		Subd. 4.Electronic transmission. (a) For background studies conducted by the 
25.7 	Department of Human Services, the commissioner shall implement a secure system for the 
25.8 	electronic transmission of:
25.9 	(1) background study information to the commissioner;
25.10 	(2) background study results to the license holder;
25.11 	(3) background study information obtained under this section and section 245C.08 to 
25.12 	counties and private agencies for background studies conducted by the commissioner for 
25.13 	child foster care, including a summary of nondisqualifying results, except as prohibited by 
25.14 	law; and
25.15 	(4) background study results to county agencies for background studies conducted by 
25.16 	the commissioner for adult foster care and family adult day services and, upon 
25.17 	implementation of NETStudy 2.0, family child care and legal nonlicensed child care 
25.18 	authorized under chapter 119B.
25.19 	(b) Unless the commissioner has granted a hardship variance under paragraph (c), a 
25.20 	license holder or an applicant must use the electronic transmission system known as 
25.21 	NETStudy or NETStudy 2.0 to submit all requests for background studies to the 
25.22 	commissioner as required by this chapter.
25.23 	(c) A license holder or applicant whose program is located in an area in which high-speed 
25.24 	Internet is inaccessible may request the commissioner to grant a variance to the electronic 
25.25 	transmission requirement.
25.26 	(d) Section 245C.08, subdivision 3, paragraph (c), applies to results transmitted under 
25.27 	this subdivision.

25.28 	EFFECTIVE DATE. This section is effective April 28, 2025.

25.29 	Sec. 26. Minnesota Statutes 2022, section 245C.17, subdivision 6, is amended to read:
25.30 		Subd. 6.Notice to county agency. For studies on individuals related to a license to 
25.31 	provide adult foster care when the applicant or license holder resides in the adult foster care 
26.1 	residence and family adult day services and, effective upon implementation of NETStudy 
26.2 	2.0, family child care and legal nonlicensed child care authorized under chapter 119B, the 
26.3 	commissioner shall also provide a notice of the background study results to the county 
26.4 	agency that initiated the background study.

26.5 	EFFECTIVE DATE. This section is effective April 28, 2025.

26.6 	Sec. 27. Minnesota Statutes 2022, section 245C.23, subdivision 2, is amended to read:
26.7 		Subd. 2.Commissioner's notice of disqualification that is not set aside. (a) The 
26.8 	commissioner shall notify the license holder of the disqualification and order the license 
26.9 	holder to immediately remove the individual from any position allowing direct contact with 
26.10 	persons receiving services from the license holder if:
26.11 	(1) the individual studied does not submit a timely request for reconsideration under 
26.12 	section 245C.21;
26.13 	(2) the individual submits a timely request for reconsideration, but the commissioner 
26.14 	does not set aside the disqualification for that license holder under section 245C.22, unless 
26.15 	the individual has a right to request a hearing under section 245C.27, 245C.28, or 256.045;
26.16 	(3) an individual who has a right to request a hearing under sections 245C.27 and 256.045, 
26.17 	or 245C.28 and chapter 14 for a disqualification that has not been set aside, does not request 
26.18 	a hearing within the specified time; or
26.19 	(4) an individual submitted a timely request for a hearing under sections 245C.27 and 
26.20 	256.045, or 245C.28 and chapter 14, but the commissioner does not set aside the 
26.21 	disqualification under section 245A.08, subdivision 5, or 256.045.
26.22 	(b) If the commissioner does not set aside the disqualification under section 245C.22, 
26.23 	and the license holder was previously ordered under section 245C.17 to immediately remove 
26.24 	the disqualified individual from direct contact with persons receiving services or to ensure 
26.25 	that the individual is under continuous, direct supervision when providing direct contact 
26.26 	services, the order remains in effect pending the outcome of a hearing under sections 245C.27 
26.27 	and 256.045, or 245C.28 and chapter 14.
26.28 	(c) If the commissioner does not set aside the disqualification under section 245C.22, 
26.29 	and the license holder was not previously ordered under section 245C.17 to immediately 
26.30 	remove the disqualified individual from direct contact with persons receiving services or 
26.31 	to ensure that the individual is under continuous direct supervision when providing direct 
26.32 	contact services, the commissioner shall order the individual to remain under continuous 
27.1 	direct supervision pending the outcome of a hearing under sections 245C.27 and 256.045, 
27.2 	or 245C.28 and chapter 14.
27.3 	(d) For background studies related to child foster care when the applicant or license 
27.4 	holder resides in the home where services are provided, the commissioner shall also notify 
27.5 	the county or private agency that initiated the study of the results of the reconsideration.
27.6 	(e) For background studies related to family child care, legal nonlicensed child care,
27.7 	adult foster care programs when the applicant or license holder resides in the home where 
27.8 	services are provided, and family adult day services, the commissioner shall also notify the 
27.9 	county that initiated the study of the results of the reconsideration.

27.10 	EFFECTIVE DATE. This section is effective April 28, 2025.

27.11 	Sec. 28. Minnesota Statutes 2022, section 256.046, subdivision 3, is amended to read:
27.12 		Subd. 3.Administrative disqualification of child care providers caring for children 
27.13 	receiving child care assistance. (a) The department or local agency shall pursue an 
27.14 	administrative disqualification, if the child care provider is accused of committing an 
27.15 	intentional program violation, in lieu of a criminal action when it has not been pursued. 
27.16 	Intentional program violations include intentionally making false or misleading statements; 
27.17 	intentionally misrepresenting, concealing, or withholding facts; and repeatedly and 
27.18 	intentionally violating program regulations under chapters 119B and 245E. Intent may be 
27.19 	proven by demonstrating a pattern of conduct that violates program rules under chapters 
27.20 	119B and 245E.
27.21 	(b) To initiate an administrative disqualification, a local agency or the commissioner 
27.22 	must mail written notice by certified mail to the provider against whom the action is being 
27.23 	taken. Unless otherwise specified under chapter 119B or 245E or Minnesota Rules, chapter 
27.24 	3400, a local agency or the commissioner must mail the written notice at least 15 calendar 
27.25 	days before the adverse action's effective date. The notice shall state (1) the factual basis 
27.26 	for the agency's determination, (2) the action the agency intends to take, (3) the dollar amount 
27.27 	of the monetary recovery or recoupment, if known, and (4) the provider's right to appeal 
27.28 	the agency's proposed action.
27.29 	(c) The provider may appeal an administrative disqualification by submitting a written 
27.30 	request to the Department of Human Services, Appeals Division. A provider's request must 
27.31 	be received by the Appeals Division no later than 30 days after the date a local agency or
27.32 	the commissioner mails the notice.
27.33 	(d) The provider's appeal request must contain the following:
28.1 	(1) each disputed item, the reason for the dispute, and, if applicable, an estimate of the 
28.2 	dollar amount involved for each disputed item;
28.3 	(2) the computation the provider believes to be correct, if applicable;
28.4 	(3) the statute or rule relied on for each disputed item; and
28.5 	(4) the name, address, and telephone number of the person at the provider's place of 
28.6 	business with whom contact may be made regarding the appeal.
28.7 	(e) On appeal, the issuing agency bears the burden of proof to demonstrate by a 
28.8 	preponderance of the evidence that the provider committed an intentional program violation.
28.9 	(f) The hearing is subject to the requirements of sections 256.045 and 256.0451. The 
28.10 	human services judge may combine a fair hearing and administrative disqualification hearing 
28.11 	into a single hearing if the factual issues arise out of the same or related circumstances and 
28.12 	the provider receives prior notice that the hearings will be combined.
28.13 	(g) A provider found to have committed an intentional program violation and is 
28.14 	administratively disqualified shall be disqualified, for a period of three years for the first 
28.15 	offense and permanently for any subsequent offense, from receiving any payments from 
28.16 	any child care program under chapter 119B.
28.17 	(h) Unless a timely and proper appeal made under this section is received by the 
28.18 	department, the administrative determination of the department is final and binding.

28.19 	EFFECTIVE DATE. This section is effective April 28, 2025.

28.20 	Sec. 29. Minnesota Statutes 2022, section 256.983, subdivision 5, is amended to read:
28.21 		Subd. 5.Child care providers; financial misconduct. (a) A county or tribal agency 
28.22 	may conduct investigations of financial misconduct by child care providers as described in 
28.23 	chapter 245E. Prior to opening an investigation, a county or tribal agency must contact the 
28.24 	commissioner to determine whether an investigation under this chapter may compromise 
28.25 	an ongoing investigation.
28.26 	(b) If, upon investigation, a preponderance of evidence shows a provider committed an 
28.27 	intentional program violation, intentionally gave the county or tribe materially false 
28.28 	information on the provider's billing forms, provided false attendance records to a county, 
28.29 	tribe, or the commissioner, or committed financial misconduct as described in section 
28.30 	245E.01, subdivision 8, the county or tribal agency may recommend that the commissioner 
28.31 	suspend a provider's payment pursuant to chapter 245E, or deny or revoke a provider's 
28.32 	authorization pursuant to section 119B.13, subdivision 6, paragraph (d), clause (2), prior to 
29.1 	pursuing other available remedies. The county or tribe must send notice in accordance with 
29.2 	the requirements of section 119B.161, subdivision 2. If a provider's payment is suspended 
29.3 	under this section, the payment suspension shall remain in effect until: (1) the commissioner, 
29.4 	county, tribe, or a law enforcement authority determines that there is insufficient evidence 
29.5 	warranting the action and a county, tribe, or the commissioner does not pursue an additional 
29.6 	administrative remedy under chapter 119B or 245E, or section 256.046 or 256.98; or (2) 
29.7 	all criminal, civil, and administrative proceedings related to the provider's alleged misconduct 
29.8 	conclude and any appeal rights are exhausted.
29.9 	(c) For the purposes of this section, an intentional program violation includes intentionally 
29.10 	making false or misleading statements; intentionally misrepresenting, concealing, or 
29.11 	withholding facts; and repeatedly and intentionally violating program regulations under 
29.12 	chapters 119B and 245E.
29.13 	(d) A provider has the right to administrative review under section 119B.161 if: (1) 
29.14 	payment is suspended under chapter 245E; or (2) the provider's authorization was denied 
29.15 	or revoked under section 119B.13, subdivision 6, paragraph (d), clause (2).

29.16 	EFFECTIVE DATE. This section is effective April 28, 2025.

29.17 	Sec. 30. DIRECTION TO COMMISSIONER; TRANSITION CHILD CARE 
29.18 	STABILIZATION GRANTS.
 29.19 	(a) The commissioner of human services must continue providing child care stabilization 
29.20 	grants under Laws 2021, First Special Session chapter 7, article 14, section 21, from July 
29.21 	1, 2023, through September 30, 2023.
29.22 	(b) The commissioner shall award transition child care stabilization grant amounts to 
29.23 	all eligible programs. The transition month grant amounts must be based on the number of 
29.24 	full-time equivalent staff who regularly care for children in the program, including employees, 
29.25 	sole proprietors, or independent contractors. One full-time equivalent staff is defined as an 
29.26 	individual caring for children 32 hours per week. An individual can count as more, or less, 
29.27 	than one full-time equivalent staff, but as no more than two full-time equivalent staff.

29.28 	Sec. 31. DIRECTION TO COMMISSIONER; INCREASE FOR MAXIMUM CHILD 
29.29 	CARE ASSISTANCE RATES.
 29.30 	Notwithstanding Minnesota Statutes, section 119B.03, subdivisions 6, 6a, and 6b, the 
29.31 	commissioner must allocate the additional basic sliding fee child care funds for calendar 
29.32 	year 2024 to counties for updated maximum rates based on relative need to cover maximum 
30.1 	rate increases. In distributing the additional funds, the commissioner shall consider the 
30.2 	following factors by county:
30.3 	(1) the number of children;
30.4 	(2) the provider type;
30.5 	(3) the age of children served; and
30.6 	(4) the amount of the increase in maximum rates.

30.7 	Sec. 32. DIRECTION TO COMMISSIONER; ALLOCATING BASIC SLIDING 
30.8 	FEE FUNDS.
 30.9 	Notwithstanding Minnesota Statutes, section 119B.03, subdivisions 6, 6a, and 6b, the 
30.10 	commissioner of human services must allocate additional basic sliding fee child care money 
30.11 	for calendar year 2025 to counties and Tribes to account for the change in the definition of 
30.12 	family in Minnesota Statutes, section 119B.011, in this article. In allocating the additional 
30.13 	money, the commissioner shall consider:
30.14 	(1) the number of children in the county or Tribe who receive care from a relative 
30.15 	custodian who accepted a transfer of permanent legal and physical custody of a child under 
30.16 	section 260C.515, subdivision 4, or similar permanency disposition in Tribal code; successor 
30.17 	custodian or guardian as established according to section 256N.22, subdivision 10; or foster 
30.18 	parents in a family foster home under section 260C.007, subdivision 16b; and
30.19 	(2) the average basic sliding fee cost of care in the county or Tribe.

30.20 	Sec. 33. REPEALER.
 30.21 	(a) Minnesota Statutes 2022, section 119B.03, subdivision 4, is repealed.
30.22 	(b) Minnesota Statutes 2022, section 245C.11, subdivision 3, is repealed.

30.23 	EFFECTIVE DATE. Paragraph (a) is effective July 1, 2023. Paragraph (b) is effective 
30.24 	April 28, 2025.

31.1 	ARTICLE 2
31.2 	CHILD SAFETY AND PERMANENCY

31.3 	Section 1. [256.4791] INDEPENDENT LIVING SKILLS FOR FOSTER YOUTH 
31.4 	GRANTS.
31.5 		Subdivision 1.Program established. The commissioner shall establish direct grants to 
31.6 	local social service agencies, Tribes, and other organizations to provide independent living 
31.7 	services to eligible foster youth as described under section 260C.452.
31.8 		Subd. 2.Grant awards. The commissioner shall request proposals and make grants to 
31.9 	eligible applicants. The commissioner shall determine the timing and form of the application 
31.10 	and the criteria for making grant awards to eligible applicants.
31.11 		Subd. 3.Program reporting. Grant recipients shall provide the commissioner with a 
31.12 	report that describes all of the activities and outcomes of services funded by the grant 
31.13 	program in a format and at a time determined by the commissioner.
31.14 		Subd. 4.Undistributed funds. Undistributed funds must be reallocated by the 
31.15 	commissioner for the goals of the grant process. Undistributed funds are available until 
31.16 	expended.

31.17 	Sec. 2. [256.4792] SUPPORT BEYOND 21 GRANT PROGRAM.
31.18 		Subdivision 1.Establishment and authority. The commissioner shall establish grants 
31.19 	to one or more community-based organizations to provide services and financial support 
31.20 	to youth eligible for the support beyond 21 program under section 260C.451, subdivision 
31.21 	8b.
31.22 		Subd. 2.Distribution of funds by the grantee. (a) The grantee shall distribute support 
31.23 	beyond 21 grant program funds to eligible youth to be used for basic well-being needs and 
31.24 	housing as determined solely by the youth.
31.25 	(b) The grantee shall distribute support beyond 21 grant funds on a monthly basis for 
31.26 	12 months.
31.27 	(c) Once a youth has completed the program, the youth must receive a stipend to complete 
31.28 	an exit survey on their experiences in the program.
31.29 	(d) A grantee may not deny funding to a youth based on any criteria beyond a youth's 
31.30 	eligibility for the support beyond 21 program under section 260C.451, subdivision 8b.
32.1 		Subd. 3.Reporting. The selected grantee must report quarterly to the commissioner of 
32.2 	human services in order to receive the quarterly payment. Information to be reported includes:
32.3 	(1) a list of eligible youth who have been referred;
32.4 	(2) the amount of funds that have been distributed to each youth per month;
32.5 	(3) any surveys completed by youth leaving the support beyond 21 program; and
32.6 	(4) other data as determined by the commissioner.

32.7 	Sec. 3. [256K.47] MINOR CONNECT GRANT PROGRAM.
32.8 		Subdivision 1.Grant program established. The commissioner of human services shall 
32.9 	establish a grant program for the development, implementation, and evaluation of services 
32.10 	to increase housing stability for unaccompanied minors who are experiencing homelessness 
32.11 	or who are at risk of homelessness and not currently receiving child welfare services.
32.12 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section and 
32.13 	have the meanings given.
32.14 	(b) "Child welfare services" means services provided to children by a local social services 
32.15 	agency or a Tribal social services agency.
32.16 	(c) "Commissioner" means the commissioner of human services.
32.17 	(d) "Community-based provider" means an organization that provides services to 
32.18 	unaccompanied minors who are experiencing homelessness or who are at risk of 
32.19 	homelessness.
32.20 	(e) "Local social services agency" means a local agency under the authority of a county 
32.21 	welfare or human services board or county board of commissioners that is responsible for 
32.22 	human services.
32.23 	(f) "Tribal social services agency" means the unit under the authority of the governing 
32.24 	body of a federally recognized Indian Tribe in Minnesota that is responsible for human 
32.25 	services.
32.26 	(g) "Unaccompanied minor" means a person 17 years of age or younger who is alone 
32.27 	without the person's parent or guardian.
32.28 		Subd. 3.Grant eligibility and uses. (a) Eligible applicants include local social services 
32.29 	agencies, Tribal social services agencies, and community-based providers.
32.30 	(b) The commissioner must award grants to eligible applicants for the development, 
32.31 	implementation, and evaluation of activities and services that increase housing stability for 
33.1 	unaccompanied minors who are experiencing homelessness or who are at risk of 
33.2 	homelessness and not currently receiving child welfare services. Eligible uses of grant 
33.3 	money include:
33.4 	(1) identifying and addressing structural factors that contribute to unaccompanied minors 
33.5 	who are experiencing homelessness or who are being at risk of homelessness;
33.6 	(2) identifying and implementing strategies to reduce racial disparities in service delivery 
33.7 	and outcomes for unaccompanied minors who are experiencing homelessness or who are 
33.8 	at risk of homelessness;
33.9 	(3) providing culturally appropriate services that increase housing stability to an 
33.10 	unaccompanied minor. Culturally appropriate services must be based on the minor's cultural 
33.11 	values, beliefs, and practices and the cultural values, beliefs, and practices of the minor's 
33.12 	family, community, and Tribe;
33.13 	(4) using placement and reunification strategies to maintain and support an 
33.14 	unaccompanied minor's relationships with the minor's parents, siblings, children, kin, 
33.15 	significant others, and Tribe; and
33.16 	(5) supporting an unaccompanied minor and the minor's family in the minor's community 
33.17 	to safely avoid entering the child welfare system whenever possible.
33.18 	(c) The commissioner may give priority to grants that involve collaboration between 
33.19 	local social services agencies, Tribal social services agencies, and community-based 
33.20 	providers.
33.21 		Subd. 4.Reporting. Local social services agencies, Tribal social services agencies and 
33.22 	community-based agencies must report quarterly to the commissioner:
33.23 	(1) the number and identity of unaccompanied minors that the agencies serve who are 
33.24 	experiencing homelessness or who are at risk of homelessness;
33.25 	(2) the actions that the agency has taken to increase housing stability for unaccompanied 
33.26 	minors who are experiencing homelessness or who are at risk of homelessness;
33.27 	(3) any patterns identified by the agency that contribute to a lack of housing stability 
33.28 	for unaccompanied minors who are experiencing homelessness or who are at risk of 
33.29 	homelessness; and
33.30 	(4) the changes needed in the community to prevent unaccompanied minors from 
33.31 	experiencing homelessness or being at risk of homelessness.

34.1 	Sec. 4. [260.014] FAMILY FIRST PREVENTION AND EARLY INTERVENTION 
34.2 	ALLOCATION PROGRAM.
34.3 		Subdivision 1.Authorization. The commissioner shall establish a program that allocates 
34.4 	money to counties and federally recognized Tribes in Minnesota to provide prevention and 
34.5 	early intervention services under the Family First Prevention Services Act in Public Law 
34.6 	115-123.
34.7 		Subd. 2.Uses. (a) Money allocated to counties and Tribes may be used for the following 
34.8 	purposes:
34.9 	(1) to implement or expand any service or program that is included in the state's 
34.10 	prevention plan;
34.11 	(2) to implement or expand any proposed service or program;
34.12 	(3) to implement or expand any existing service or programming; and
34.13 	(4) any other use approved by the commissioner.
34.14 	A county or a Tribe must use at least ten percent of the allocation to provide services and 
34.15 	supports directly to families.
34.16 		Subd. 3.Payments. (a) The commissioner shall allocate state funds appropriated under 
34.17 	this section to each county board or Tribe on a calendar-year basis using a formula established 
34.18 	by the commissioner.
34.19 	(b) Notwithstanding this subdivision, to the extent that money is available, no county 
34.20 	or Tribe shall be allocated less than:
34.21 	(1) $25,000 in calendar year 2024;
34.22 	(2) $50,000 in calendar year 2025; and
34.23 	(3) $75,000 in calendar year 2026 and each year thereafter.
34.24 	(c) A county agency or an initiative Tribe must submit a plan and report the use of money 
34.25 	as determined by the commissioner.
34.26 	(d) The commissioner may distribute money under this section for a two-year period.
34.27 		Subd. 4.Prohibition on supplanting existing funds. Funds received under this section 
34.28 	must be used to address prevention and early intervention staffing, programming, and other 
34.29 	activities as determined by the commissioner. Funds must not be used to supplant current 
34.30 	county or Tribal expenditures for these purposes.

35.1 	Sec. 5. Minnesota Statutes 2022, section 260.761, subdivision 2, is amended to read:
35.2 		Subd. 2.Agency and court notice to tribes. (a) When a local social services agency 
35.3 	has information that a family assessment or, investigation, or noncaregiver sex trafficking 
35.4 	assessment being conducted may involve an Indian child, the local social services agency 
35.5 	shall notify the Indian child's tribe of the family assessment or, investigation, or noncaregiver 
35.6 	sex trafficking assessment according to section 260E.18. The local social services agency 
35.7 	shall provide initial notice shall be provided by telephone and by email or facsimile. The 
35.8 	local social services agency shall request that the tribe or a designated tribal representative 
35.9 	participate in evaluating the family circumstances, identifying family and tribal community 
35.10 	resources, and developing case plans.
35.11 	(b) When a local social services agency has information that a child receiving services 
35.12 	may be an Indian child, the local social services agency shall notify the tribe by telephone 
35.13 	and by email or facsimile of the child's full name and date of birth, the full names and dates 
35.14 	of birth of the child's biological parents, and, if known, the full names and dates of birth of 
35.15 	the child's grandparents and of the child's Indian custodian. This notification must be provided 
35.16 	so for the tribe can to determine if the child is enrolled in the tribe or eligible for Tribal
35.17 	membership, and must be provided the agency must provide this notification to the Tribe
35.18 	within seven days of receiving information that the child may be an Indian child. If 
35.19 	information regarding the child's grandparents or Indian custodian is not available within 
35.20 	the seven-day period, the local social services agency shall continue to request this 
35.21 	information and shall notify the tribe when it is received. Notice shall be provided to all 
35.22 	tribes to which the child may have any tribal lineage. If the identity or location of the child's 
35.23 	parent or Indian custodian and tribe cannot be determined, the local social services agency 
35.24 	shall provide the notice required in this paragraph to the United States secretary of the 
35.25 	interior.
35.26 	(c) In accordance with sections 260C.151 and 260C.152, when a court has reason to 
35.27 	believe that a child placed in emergency protective care is an Indian child, the court 
35.28 	administrator or a designee shall, as soon as possible and before a hearing takes place, notify 
35.29 	the tribal social services agency by telephone and by email or facsimile of the date, time, 
35.30 	and location of the emergency protective case hearing. The court shall make efforts to allow 
35.31 	appearances by telephone for tribal representatives, parents, and Indian custodians.
35.32 	(d) A local social services agency must provide the notices required under this subdivision 
35.33 	at the earliest possible time to facilitate involvement of the Indian child's tribe. Nothing in 
35.34 	this subdivision is intended to hinder the ability of the local social services agency and the 
35.35 	court to respond to an emergency situation. Lack of participation by a tribe shall not prevent 
36.1 	the tribe from intervening in services and proceedings at a later date. A tribe may participate
36.2 	in a case at any time. At any stage of the local social services agency's involvement with 
36.3 	an Indian child, the agency shall provide full cooperation to the tribal social services agency, 
36.4 	including disclosure of all data concerning the Indian child. Nothing in this subdivision 
36.5 	relieves the local social services agency of satisfying the notice requirements in the Indian 
36.6 	Child Welfare Act.

36.7 	Sec. 6. [260.786] CHILD WELFARE STAFF ALLOCATION FOR TRIBES.
36.8 		Subdivision 1.Allocations. The commissioner shall allocate $80,000 annually to each 
36.9 	of Minnesota's federally recognized Tribes that, at the beginning of the fiscal year, have not 
36.10 	joined the American Indian Child welfare initiative under section 256.01, subdivision 14b. 
36.11 	Tribes not participating in the initiative are: Bois Fort Band of Chippewa, Fond du Lac 
36.12 	Band of Lake Superior Chippewa, Grand Portage Band of Lake Superior Chippewa, Lower 
36.13 	Sioux Indian Community, Prairie Island Indian Community, and Upper Sioux Indian 
36.14 	Community.
36.15 		Subd. 2.Purposes. Funds must be used to address staffing for child protection or child 
36.16 	welfare services. Funds must not be used to supplant current Tribal expenditures for these 
36.17 	purposes.
36.18 		Subd. 3.Reporting. By June 1 each year, Tribes receiving these funds shall provide a 
36.19 	report to the commissioner. The report shall be written in a manner prescribed by the 
36.20 	commissioner and must include an accounting of funds spent, staff hired, job duties, and 
36.21 	other information as required by the commissioner.
36.22 		Subd. 4.Redistribution of funds. If a Tribe joins the American Indian child welfare 
36.23 	initiative, the payment for that Tribe shall be distributed equally among the remaining Tribes 
36.24 	receiving an allocation under this section.

36.25 	Sec. 7. Minnesota Statutes 2022, section 260C.007, subdivision 14, is amended to read:
36.26 		Subd. 14.Egregious harm. "Egregious harm" means the infliction of bodily harm to a 
36.27 	child or neglect of a child which demonstrates a grossly inadequate ability to provide 
36.28 	minimally adequate parental care. The egregious harm need not have occurred in the state 
36.29 	or in the county where a termination of parental rights action is otherwise properly venued
36.30 	has proper venue. Egregious harm includes, but is not limited to:
36.31 	(1) conduct towards toward a child that constitutes a violation of sections 609.185 to 
36.32 	609.2114, 609.222, subdivision 2, 609.223, or any other similar law of any other state;
37.1 	(2) the infliction of "substantial bodily harm" to a child, as defined in section 609.02, 
37.2 	subdivision 7a;
37.3 	(3) conduct towards toward a child that constitutes felony malicious punishment of a 
37.4 	child under section 609.377;
37.5 	(4) conduct towards toward a child that constitutes felony unreasonable restraint of a 
37.6 	child under section 609.255, subdivision 3;
37.7 	(5) conduct towards toward a child that constitutes felony neglect or endangerment of 
37.8 	a child under section 609.378;
37.9 	(6) conduct towards toward a child that constitutes assault under section 609.221, 609.222, 
37.10 	or 609.223;
37.11 	(7) conduct towards toward a child that constitutes sex trafficking, solicitation, 
37.12 	inducement, or promotion of, or receiving profit derived from prostitution under section 
37.13 	609.322;
37.14 	(8) conduct towards toward a child that constitutes murder or voluntary manslaughter 
37.15 	as defined by United States Code, title 18, section 1111(a) or 1112(a);
37.16 	(9) conduct towards toward a child that constitutes aiding or abetting, attempting, 
37.17 	conspiring, or soliciting to commit a murder or voluntary manslaughter that constitutes a 
37.18 	violation of United States Code, title 18, section 1111(a) or 1112(a); or
37.19 	(10) conduct toward a child that constitutes criminal sexual conduct under sections 
37.20 	609.342 to 609.345 or sexual extortion under section 609.3458.

37.21 	Sec. 8. Minnesota Statutes 2022, section 260C.451, is amended by adding a subdivision 
37.22 	to read:
37.23 		Subd. 8a.Transition planing. (a) For a youth who will be discharged from foster care 
37.24 	at 21 years of age or older, the responsible social services agency must develop an individual 
37.25 	transition plan as directed by the youth during the 180-day period immediately prior to the 
37.26 	youth's expected date of discharge according to section 260C.452, subdivision 4. The youth's 
37.27 	individual transition plan may be shared with a contracted agency providing case management 
37.28 	services to the youth under section 260C.452.
37.29 	(b) As part of transition planning, the responsible social services agency must inform a 
37.30 	youth preparing to leave extended foster care of the youth's eligibility for the support beyond 
37.31 	21 program under subdivision 8b and must include that program in the individual transition 
37.32 	plan for the eligible youth. Consistent with section 13.46, the local social services agency 
38.1 	or initiative Tribe must refer a youth to the support beyond 21 program by providing the 
38.2 	program with the youth's contact information

38.3 	Sec. 9. Minnesota Statutes 2022, section 260C.451, is amended by adding a subdivision 
38.4 	to read:
38.5 		Subd. 8b.Support beyond 21 program. (a) The commissioner shall establish the support 
38.6 	beyond 21 program to provide financial assistance to a youth leaving foster care to help 
38.7 	ensure that the youth's basic needs are met as the youth transitions into adulthood.
38.8 	(b) An individual who has left extended foster care and was discharged at the age of 21 
38.9 	under subdivision 3 is eligible for the support beyond 21 program.
38.10 	(c) An eligible youth receiving benefits under the support beyond 21 program is also 
38.11 	eligible for the successful transition to adulthood program under section 260C.452.
38.12 	(d) A youth who transitions to adult residential services under section 256B.092 or 
38.13 	256B.49 or a youth in a correctional facility licensed under section 241.021 is not eligible 
38.14 	for the support beyond 21 program.
38.15 	(e) To the extent that funds are available under section 256.4791, an eligible youth who 
38.16 	participates in the support beyond 21 program must receive monthly financial assistance 
38.17 	for 12 months after the youth is discharged from extended foster care under subdivision 3. 
38.18 	The funds are available to assist the youth in meeting basic well-being and housing needs 
38.19 	as determined solely by the youth. Monthly payments must be reduced quarterly. Payments 
38.20 	must be made by a grantee according to the requirements of section 256.4791.

38.21 	Sec. 10. Minnesota Statutes 2022, section 260C.452, is amended by adding a subdivision 
38.22 	to read:
38.23 		Subd. 6.Independent living skills grant program. (a) The commissioner shall establish 
38.24 	direct grants to local social service agencies, Tribes, and other community organizations to 
38.25 	provide independent living services to eligible youth under this section.
38.26 	(b)The commissioner shall make allocations, request proposals, and specify the 
38.27 	information and criteria required for applications to the independent living skills grant 
38.28 	program.

38.29 	Sec. 11. Minnesota Statutes 2022, section 260C.605, subdivision 1, is amended to read:
38.30 		Subdivision 1.Requirements. (a) Reasonable efforts to finalize the adoption of a child 
38.31 	under the guardianship of the commissioner shall be made by the responsible social services 
39.1 	agency responsible for permanency planning for the child. The responsible social services 
39.2 	agency's reasonable efforts to finalize the adoption of a child under the guardianship of the 
39.3 	commissioner of human services must be subject to supervision by the commissioner 
39.4 	pursuant to section 393.07.
39.5 	(b) Reasonable efforts to make a placement in a home according to the placement 
39.6 	considerations under section 260C.212, subdivision 2, with a relative or foster parent who 
39.7 	will commit to being the permanent resource for the child in the event the child cannot be 
39.8 	reunified with a parent are required under section 260.012 and may be made concurrently 
39.9 	with reasonable, or if the child is an Indian child, active efforts to reunify the child with the 
39.10 	parent.
39.11 	(c) Reasonable efforts under paragraph (b) must begin as soon as possible when the 
39.12 	child is in foster care under this chapter, but not later than the hearing required under section 
39.13 	260C.204.
39.14 	(d) Reasonable efforts to finalize the adoption of the child include:
39.15 	(1) considering the child's preference for an adoptive family;
39.16 	(2) using age-appropriate engagement strategies to plan for adoption with the child;
39.17 	(3) identifying an appropriate prospective adoptive parent for the child by updating the 
39.18 	child's identified needs using the factors in section 260C.212, subdivision 2;
39.19 	(4) making an adoptive placement that meets the child's needs by:
39.20 	(i) completing or updating the relative search required under section 260C.221 and giving 
39.21 	notice of the need for an adoptive home for the child to:
39.22 	(A) relatives who have kept the agency or the court apprised of their whereabouts; or
39.23 	(B) relatives of the child who are located in an updated search;
39.24 	(ii) an updated search is required whenever:
39.25 	(A) there is no identified prospective adoptive placement for the child notwithstanding 
39.26 	a finding by the court that the agency made diligent efforts under section 260C.221, in a 
39.27 	hearing required under section 260C.202;
39.28 	(B) the child is removed from the home of an adopting parent; or
39.29 	(C) the court determines that a relative search by the agency is in the best interests of 
39.30 	the child;
40.1 	(iii) engaging the child's relatives or current or former foster parents to commit to being 
40.2 	the prospective adoptive parent of the child, and considering the child's relatives for adoptive 
40.3 	placement of the child in the order specified under section 260C.212, subdivision 2, paragraph 
40.4 	(a); or
40.5 	(iv) when there is no identified prospective adoptive parent:
40.6 	(A) registering the child on the state adoption exchange as required in section 259.75 
40.7 	unless the agency documents to the court an exception to placing the child on the state 
40.8 	adoption exchange reported to the commissioner;
40.9 	(B) reviewing all families with approved adoption home studies associated with the 
40.10 	responsible social services agency;
40.11 	(C) presenting the child to adoption agencies and adoption personnel who may assist 
40.12 	with finding an adoptive home for the child;
40.13 	(D) using newspapers and other media to promote the particular child;
40.14 	(E) using a private agency under grant contract with the commissioner to provide adoption 
40.15 	services for intensive child-specific recruitment efforts; and
40.16 	(F) making any other efforts or using any other resources reasonably calculated to identify 
40.17 	a prospective adoption parent for the child;
40.18 	(5) updating and completing the social and medical history required under sections 
40.19 	260C.212, subdivision 15, and 260C.609;
40.20 	(6) making, and keeping updated, appropriate referrals required by section 260.851, the 
40.21 	Interstate Compact on the Placement of Children;
40.22 	(7) giving notice regarding the responsibilities of an adoptive parent to any prospective 
40.23 	adoptive parent as required under section 259.35;
40.24 	(8) offering the adopting parent the opportunity to apply for or decline adoption assistance 
40.25 	under chapter 256N;
40.26 	(9) certifying the child for adoption assistance, assessing the amount of adoption 
40.27 	assistance, and ascertaining the status of the commissioner's decision on the level of payment 
40.28 	if the adopting parent has applied for adoption assistance;
40.29 	(10) placing the child with siblings. If the child is not placed with siblings, the agency 
40.30 	must document reasonable efforts to place the siblings together, as well as the reason for 
40.31 	separation. The agency may not cease reasonable efforts to place siblings together for final 
41.1 	adoption until the court finds further reasonable efforts would be futile or that placement 
41.2 	together for purposes of adoption is not in the best interests of one of the siblings; and
41.3 	(11) working with the adopting parent to file a petition to adopt the child and with the 
41.4 	court administrator to obtain a timely hearing to finalize the adoption.

41.5 	Sec. 12. Minnesota Statutes 2022, section 260C.605, is amended by adding a subdivision 
41.6 	to read:
41.7 		Subd. 3.Quality assurance of recruitment efforts. The commissioner of human services 
41.8 	shall establish an ongoing quality assurance process for recruitment efforts to monitor service 
41.9 	integrity, including practice standards and training, consumer surveys, and random reviews 
41.10 	of documentation.

41.11 	Sec. 13. Minnesota Statutes 2022, section 260C.704, is amended to read:
41.12 	260C.704 REQUIREMENTS FOR THE QUALIFIED INDIVIDUAL'S 
41.13 	ASSESSMENT OF THE CHILD FOR PLACEMENT IN A QUALIFIED 
41.14 	RESIDENTIAL TREATMENT PROGRAM.
41.15 	(a) A qualified individual must complete an assessment of the child prior to the child's 
41.16 	placement in a qualified residential treatment program in a format approved by the 
41.17 	commissioner of human services unless, due to a crisis, the child must immediately be 
41.18 	placed in a qualified residential treatment program. When a child must immediately be 
41.19 	placed in a qualified residential treatment program without an assessment, the qualified 
41.20 	individual must complete the child's assessment within 30 days of the child's placement. 
41.21 	The qualified individual must:
41.22 	(1) assess the child's needs and strengths, using an age-appropriate, evidence-based, 
41.23 	validated, functional assessment approved by the commissioner of human services;
41.24 	(2) determine whether the child's needs can be met by the child's family members or 
41.25 	through placement in a family foster home; or, if not, determine which residential setting 
41.26 	would provide the child with the most effective and appropriate level of care to the child 
41.27 	in the least restrictive environment;
41.28 	(3) develop a list of short- and long-term mental and behavioral health goals for the 
41.29 	child; and
41.30 	(4) work with the child's family and permanency team using culturally competent 
41.31 	practices.
42.1 	If a level of care determination was conducted under section 245.4885, that information 
42.2 	must be shared with the qualified individual and the juvenile treatment screening team.
42.3 	(b) The child and the child's parents, when appropriate, may request that a specific 
42.4 	culturally competent qualified individual complete the child's assessment. The agency shall 
42.5 	make efforts to refer the child to the identified qualified individual to complete the 
42.6 	assessment. The assessment must not be delayed for a specific qualified individual to 
42.7 	complete the assessment.
42.8 	(c) The qualified individual must provide the assessment, when complete, to the 
42.9 	responsible social services agency. If the assessment recommends placement of the child 
42.10 	in a qualified residential treatment facility, the agency must distribute the assessment to the 
42.11 	child's parent or legal guardian and file the assessment with the court report as required in 
42.12 	section 260C.71, subdivision 2. If the assessment does not recommend placement in a 
42.13 	qualified residential treatment facility, the agency must provide a copy of the assessment 
42.14 	to the parents or legal guardians and the guardian ad litem and file the assessment 
42.15 	determination with the court at the next required hearing as required in section 260C.71, 
42.16 	subdivision 5. If court rules and chapter 13 permit disclosure of the results of the child's 
42.17 	assessment, the agency may share the results of the child's assessment with the child's foster 
42.18 	care provider, other members of the child's family, and the family and permanency team. 
42.19 	The agency must not share the child's private medical data with the family and permanency 
42.20 	team unless: (1) chapter 13 permits the agency to disclose the child's private medical data 
42.21 	to the family and permanency team; or (2) the child's parent has authorized the agency to 
42.22 	disclose the child's private medical data to the family and permanency team.
42.23 	(d) For an Indian child, the assessment of the child must follow the order of placement 
42.24 	preferences in the Indian Child Welfare Act of 1978, United States Code, title 25, section 
42.25 	1915.
42.26 	(e) In the assessment determination, the qualified individual must specify in writing:
42.27 	(1) the reasons why the child's needs cannot be met by the child's family or in a family 
42.28 	foster home. A shortage of family foster homes is not an acceptable reason for determining 
42.29 	that a family foster home cannot meet a child's needs;
42.30 	(2) why the recommended placement in a qualified residential treatment program will 
42.31 	provide the child with the most effective and appropriate level of care to meet the child's 
42.32 	needs in the least restrictive environment possible and how placing the child at the treatment 
42.33 	program is consistent with the short-term and long-term goals of the child's permanency 
42.34 	plan; and
43.1 	(3) if the qualified individual's placement recommendation is not the placement setting 
43.2 	that the parent, family and permanency team, child, or tribe prefer, the qualified individual 
43.3 	must identify the reasons why the qualified individual does not recommend the parent's, 
43.4 	family and permanency team's, child's, or tribe's placement preferences. The out-of-home 
43.5 	placement plan under section 260C.708 must also include reasons why the qualified 
43.6 	individual did not recommend the preferences of the parents, family and permanency team, 
43.7 	child, or tribe.
43.8 	(f) If the qualified individual determines that the child's family or a family foster home 
43.9 	or other less restrictive placement may meet the child's needs, the agency must move the 
43.10 	child out of the qualified residential treatment program and transition the child to a less 
43.11 	restrictive setting within 30 days of the determination. If the responsible social services 
43.12 	agency has placement authority of the child, the agency must make a plan for the child's 
43.13 	placement according to section 260C.212, subdivision 2. The agency must file the child's 
43.14 	assessment determination with the court at the next required hearing.
43.15 	(g) If the qualified individual recommends placing the child in a qualified residential 
43.16 	treatment program and if the responsible social services agency has placement authority of 
43.17 	the child, the agency shall make referrals to appropriate qualified residential treatment 
43.18 	programs and, upon acceptance by an appropriate program, place the child in an approved 
43.19 	or certified qualified residential treatment program.
43.20 	(h) The commissioner shall establish a review process for a qualified individual's 
43.21 	completed assessment of a child. The review process must be developed with county and 
43.22 	Tribal agency representatives. The review process must ensure that the qualified individual's 
43.23 	assessment is an independent, objective assessment that recommends the least restrictive 
43.24 	setting to meet the child's needs.

43.25 	Sec. 14. Minnesota Statutes 2022, section 260E.01, is amended to read:
43.26 	260E.01 POLICY.
43.27 	(a) The legislature hereby declares that the public policy of this state is to protect children 
43.28 	whose health or welfare may be jeopardized through maltreatment. While it is recognized 
43.29 	that most parents want to keep their children safe, sometimes circumstances or conditions 
43.30 	interfere with their ability to do so. When this occurs, the health and safety of the children 
43.31 	must be of paramount concern. Intervention and prevention efforts must address immediate 
43.32 	concerns for child safety and the ongoing risk of maltreatment and should engage the 
43.33 	protective capacities of families. In furtherance of this public policy, it is the intent of the 
43.34 	legislature under this chapter to:
44.1 	(1) protect children and promote child safety;
44.2 	(2) strengthen the family;
44.3 	(3) make the home, school, and community safe for children by promoting responsible 
44.4 	child care in all settings; and
44.5 	(4) provide, when necessary, a safe temporary or permanent home environment for 
44.6 	maltreated children.
44.7 	(b) In addition, it is the policy of this state to:
44.8 	(1) require the reporting of maltreatment of children in the home, school, and community 
44.9 	settings;
44.10 	(2) provide for the voluntary reporting of maltreatment of children;
44.11 	(3) require an investigation when the report alleges sexual abuse or substantial child 
44.12 	endangerment, except when the report alleges sex trafficking by a noncaregiver sex trafficker;
44.13 	(4) provide a family assessment, if appropriate, when the report does not allege sexual 
44.14 	abuse or substantial child endangerment; and
44.15 	(5) provide a noncaregiver sex trafficking assessment when the report alleges sex 
44.16 	trafficking by a noncaregiver sex trafficker; and
44.17 	(6) provide protective, family support, and family preservation services when needed 
44.18 	in appropriate cases.

44.19 	Sec. 15. Minnesota Statutes 2022, section 260E.02, subdivision 1, is amended to read:
44.20 		Subdivision 1.Establishment of team. A county shall establish a multidisciplinary 
44.21 	child protection team that may include, but is not be limited to, the director of the local 
44.22 	welfare agency or designees, the county attorney or designees, the county sheriff or designees, 
44.23 	representatives of health and education, representatives of mental health, representatives of 
44.24 	agencies providing specialized services or responding to youth who experience or are at 
44.25 	risk of experiencing sex trafficking or sexual exploitation, or other appropriate human 
44.26 	services or community-based agencies, and parent groups. As used in this section, a 
44.27 	"community-based agency" may include, but is not limited to, schools, social services 
44.28 	agencies, family service and mental health collaboratives, children's advocacy centers, early 
44.29 	childhood and family education programs, Head Start, or other agencies serving children 
44.30 	and families. A member of the team must be designated as the lead person of the team 
44.31 	responsible for the planning process to develop standards for the team's activities with 
44.32 	battered women's and domestic abuse programs and services.

45.1 	Sec. 16. Minnesota Statutes 2022, section 260E.03, is amended by adding a subdivision 
45.2 	to read:
45.3 		Subd. 15a.Noncaregiver sex trafficker. "Noncaregiver sex trafficker" means an 
45.4 	individual who is alleged to have engaged in the act of sex trafficking a child and who is 
45.5 	not a person responsible for the child's care, who does not have a significant relationship 
45.6 	with the child as defined in section 609.341, and who is not a person in a current or recent 
45.7 	position of authority as defined in section 609.341, subdivision 10.

45.8 	Sec. 17. Minnesota Statutes 2022, section 260E.03, is amended by adding a subdivision 
45.9 	to read:
45.10 		Subd. 15b.Noncaregiver sex trafficking assessment. "Noncaregiver sex trafficking 
45.11 	assessment" is a comprehensive assessment of child safety, the risk of subsequent child 
45.12 	maltreatment, and strengths and needs of the child and family. The local welfare agency 
45.13 	shall only perform a noncaregiver sex trafficking assessment when a maltreatment report 
45.14 	alleges sex trafficking of a child by someone other than the child's caregiver. A noncaregiver 
45.15 	sex trafficking assessment does not include a determination of whether child maltreatment 
45.16 	occurred. A noncaregiver sex trafficking assessment includes a determination of a family's 
45.17 	need for services to address the safety of the child or children, the safety of family members, 
45.18 	and the risk of subsequent child maltreatment.

45.19 	Sec. 18. Minnesota Statutes 2022, section 260E.03, subdivision 22, is amended to read:
45.20 		Subd. 22.Substantial child endangerment. "Substantial child endangerment" means 
45.21 	that a person responsible for a child's care, by act or omission, commits or attempts to 
45.22 	commit an act against a child under their in the person's care that constitutes any of the 
45.23 	following:
45.24 	(1) egregious harm under subdivision 5;
45.25 	(2) abandonment under section 260C.301, subdivision 2;
45.26 	(3) neglect under subdivision 15, paragraph (a), clause (2), that substantially endangers 
45.27 	the child's physical or mental health, including a growth delay, which may be referred to 
45.28 	as failure to thrive, that has been diagnosed by a physician and is due to parental neglect;
45.29 	(4) murder in the first, second, or third degree under section 609.185, 609.19, or 609.195;
45.30 	(5) manslaughter in the first or second degree under section 609.20 or 609.205;
45.31 	(6) assault in the first, second, or third degree under section 609.221, 609.222, or 609.223;
46.1 	(7) sex trafficking, solicitation, inducement, and or promotion of prostitution under 
46.2 	section 609.322;
46.3 	(8) criminal sexual conduct under sections 609.342 to 609.3451;
46.4 	(9) sexual extortion under section 609.3458;
46.5 	(10) solicitation of children to engage in sexual conduct under section 609.352;
46.6 	(11) malicious punishment or neglect or endangerment of a child under section 609.377 
46.7 	or 609.378;
46.8 	(12) use of a minor in sexual performance under section 617.246; or
46.9 	(13) parental behavior, status, or condition that mandates that requiring the county 
46.10 	attorney to file a termination of parental rights petition under section 260C.503, subdivision 
46.11 	2.

46.12 	Sec. 19. Minnesota Statutes 2022, section 260E.14, subdivision 2, is amended to read:
46.13 		Subd. 2.Sexual abuse. (a) The local welfare agency is the agency responsible for 
46.14 	investigating an allegation of sexual abuse if the alleged offender is the parent, guardian, 
46.15 	sibling, or an individual functioning within the family unit as a person responsible for the 
46.16 	child's care, or a person with a significant relationship to the child if that person resides in 
46.17 	the child's household.
46.18 	(b) The local welfare agency is also responsible for assessing or investigating when a 
46.19 	child is identified as a victim of sex trafficking.

46.20 	Sec. 20. Minnesota Statutes 2022, section 260E.14, subdivision 5, is amended to read:
46.21 		Subd. 5.Law enforcement. (a) The local law enforcement agency is the agency 
46.22 	responsible for investigating a report of maltreatment if a violation of a criminal statute is 
46.23 	alleged.
46.24 	(b) Law enforcement and the responsible agency must coordinate their investigations 
46.25 	or assessments as required under this chapter when the: (1) a report alleges maltreatment 
46.26 	that is a violation of a criminal statute by a person who is a parent, guardian, sibling, person 
46.27 	responsible for the child's care functioning within the family unit, or by a person who lives 
46.28 	in the child's household and who has a significant relationship to the child, in a setting other 
46.29 	than a facility as defined in section 260E.03; or (2) a report alleges sex trafficking of a child.

47.1 	Sec. 21. Minnesota Statutes 2022, section 260E.17, subdivision 1, is amended to read:
47.2 		Subdivision 1.Local welfare agency. (a) Upon receipt of a report, the local welfare 
47.3 	agency shall determine whether to conduct a family assessment or, an investigation, or a 
47.4 	noncaregiver sex trafficking assessment  as appropriate to prevent or provide a remedy for 
47.5 	maltreatment.
47.6 	(b) The local welfare agency shall conduct an investigation when the report involves 
47.7 	sexual abuse, except as indicated in paragraph (f), or substantial child endangerment.
47.8 	(c) The local welfare agency shall begin an immediate investigation if, at any time when 
47.9 	the local welfare agency is using responding with a family assessment response, and the 
47.10 	local welfare agency determines that there is reason to believe that sexual abuse or, substantial 
47.11 	child endangerment, or a serious threat to the child's safety exists.
47.12 	(d) The local welfare agency may conduct a family assessment for reports that do not 
47.13 	allege sexual abuse, except as indicated in paragraph (f), or substantial child endangerment. 
47.14 	In determining that a family assessment is appropriate, the local welfare agency may consider 
47.15 	issues of child safety, parental cooperation, and the need for an immediate response.
47.16 	(e) The local welfare agency may conduct a family assessment on for a report that was 
47.17 	initially screened and assigned for an investigation. In determining that a complete 
47.18 	investigation is not required, the local welfare agency must document the reason for 
47.19 	terminating the investigation and notify the local law enforcement agency if the local law 
47.20 	enforcement agency is conducting a joint investigation.
47.21 	(f) The local welfare agency shall conduct a noncaregiver sex trafficking assessment 
47.22 	when a maltreatment report alleges sex trafficking of a child and the alleged offender is a 
47.23 	noncaregiver sex trafficker as defined by section 260E.03, subdivision 15a.
47.24 	(g) During a noncaregiver sex trafficking assessment, the local welfare agency shall 
47.25 	initiate an immediate investigation if there is reason to believe that a child's parent, caregiver, 
47.26 	or household member allegedly engaged in the act of sex trafficking a child or was alleged 
47.27 	to have engaged in any conduct requiring the agency to conduct an investigation.

47.28 	Sec. 22. Minnesota Statutes 2022, section 260E.18, is amended to read:
47.29 	260E.18 NOTICE TO CHILD'S TRIBE.
47.30 	The local welfare agency shall provide immediate notice, according to section 260.761, 
47.31 	subdivision 2, to an Indian child's tribe when the agency has reason to believe that the family 
47.32 	assessment or, investigation, or noncaregiver sex trafficking assessment may involve an 
48.1 	Indian child. For purposes of this section, "immediate notice" means notice provided within 
48.2 	24 hours.

48.3 	Sec. 23. Minnesota Statutes 2022, section 260E.20, subdivision 2, is amended to read:
48.4 		Subd. 2.Face-to-face contact. (a) Upon receipt of a screened in report, the local welfare 
48.5 	agency shall conduct a have face-to-face contact with the child reported to be maltreated 
48.6 	and with the child's primary caregiver sufficient to complete a safety assessment and ensure 
48.7 	the immediate safety of the child. When it is possible and the report alleges substantial child 
48.8 	endangerment or sexual abuse, the local welfare agency is not required to provide notice 
48.9 	before conducting the initial face-to-face contact with the child and the child's primary 
48.10 	caregiver.
48.11 	(b) Except in a noncaregiver sex trafficking assessment, the local welfare agency shall 
48.12 	have face-to-face contact with the child and primary caregiver shall occur immediately after 
48.13 	the agency screens in a report if sexual abuse or substantial child endangerment is alleged 
48.14 	and within five calendar days of a screened in report for all other reports. If the alleged 
48.15 	offender was not already interviewed as the primary caregiver, the local welfare agency 
48.16 	shall also conduct a face-to-face interview with the alleged offender in the early stages of 
48.17 	the assessment or investigation, except in a noncaregiver sex trafficking assessment. 
48.18 	Face-to-face contact with the child and primary caregiver in response to a report alleging 
48.19 	sexual abuse or substantial child endangerment may be postponed for no more than five 
48.20 	calendar days if the child is residing in a location that is confirmed to restrict contact with 
48.21 	the alleged offender as established in guidelines issued by the commissioner, or if the local 
48.22 	welfare agency is pursuing a court order for the child's caregiver to produce the child for 
48.23 	questioning under section 260E.22, subdivision 5.
48.24 	(c) At the initial contact with the alleged offender, the local welfare agency or the agency 
48.25 	responsible for assessing or investigating the report must inform the alleged offender of the 
48.26 	complaints or allegations made against the individual in a manner consistent with laws 
48.27 	protecting the rights of the person who made the report. The interview with the alleged 
48.28 	offender may be postponed if it would jeopardize an active law enforcement investigation.
48.29 	In a noncaregiver sex trafficking assessment, the local child welfare agency is not required 
48.30 	to inform or interview the alleged offender.
48.31 	(d) The local welfare agency or the agency responsible for assessing or investigating 
48.32 	the report must provide the alleged offender with an opportunity to make a statement, except 
48.33 	in a noncaregiver sex trafficking assessment. The alleged offender may submit supporting 
48.34 	documentation relevant to the assessment or investigation.

49.1 	Sec. 24. Minnesota Statutes 2022, section 260E.24, subdivision 2, is amended to read:
49.2 		Subd. 2.Determination after family assessment or a noncaregiver sex trafficking 
49.3 	assessment. After conducting a family assessment or a noncaregiver sex trafficking 
49.4 	assessment, the local welfare agency shall determine whether child protective services are 
49.5 	needed to address the safety of the child and other family members and the risk of subsequent 
49.6 	maltreatment. The local welfare agency must document the information collected under 
49.7 	section 260E.20, subdivision 3, related to the completed family assessment in the child's or 
49.8 	family's case notes.

49.9 	Sec. 25. Minnesota Statutes 2022, section 260E.24, subdivision 7, is amended to read:
49.10 		Subd. 7.Notification at conclusion of family assessment or a noncaregiver sex 
49.11 	trafficking assessment. Within ten working days of the conclusion of a family assessment
49.12 	or a noncaregiver sex trafficking assessment, the local welfare agency shall notify the parent 
49.13 	or guardian of the child of the need for services to address child safety concerns or significant 
49.14 	risk of subsequent maltreatment. The local welfare agency and the family may also jointly 
49.15 	agree that family support and family preservation services are needed.

49.16 	Sec. 26. Minnesota Statutes 2022, section 260E.33, subdivision 1, is amended to read:
49.17 		Subdivision 1.Following a family assessment or a noncaregiver sex trafficking 
49.18 	assessment. Administrative reconsideration is not applicable to a family assessment or 
49.19 	noncaregiver sex trafficking assessment since no determination concerning maltreatment 
49.20 	is made.

49.21 	Sec. 27. Minnesota Statutes 2022, section 260E.35, subdivision 6, is amended to read:
49.22 		Subd. 6.Data retention. (a) Notwithstanding sections 138.163 and 138.17, a record 
49.23 	maintained or a record derived from a report of maltreatment by a local welfare agency, 
49.24 	agency responsible for assessing or investigating the report, court services agency, or school 
49.25 	under this chapter shall be destroyed as provided in paragraphs (b) to (e) by the responsible 
49.26 	authority.
49.27 	(b) For a report alleging maltreatment that was not accepted for an assessment or an 
49.28 	investigation, a family assessment case, a noncaregiver sex trafficking assessment case, and 
49.29 	a case where an investigation results in no determination of maltreatment or the need for 
49.30 	child protective services, the record must be maintained for a period of five years after the 
49.31 	date that the report was not accepted for assessment or investigation or the date of the final 
49.32 	entry in the case record. A record of a report that was not accepted must contain sufficient 
50.1 	information to identify the subjects of the report, the nature of the alleged maltreatment, 
50.2 	and the reasons as to why the report was not accepted. Records under this paragraph may 
50.3 	not be used for employment, background checks, or purposes other than to assist in future 
50.4 	screening decisions and risk and safety assessments.
50.5 	(c) All records relating to reports that, upon investigation, indicate either maltreatment 
50.6 	or a need for child protective services shall be maintained for ten years after the date of the 
50.7 	final entry in the case record.
50.8 	(d) All records regarding a report of maltreatment, including a notification of intent to 
50.9 	interview that was received by a school under section 260E.22, subdivision 7, shall be 
50.10 	destroyed by the school when ordered to do so by the agency conducting the assessment or 
50.11 	investigation. The agency shall order the destruction of the notification when other records 
50.12 	relating to the report under investigation or assessment are destroyed under this subdivision.
50.13 	(e) Private or confidential data released to a court services agency under subdivision 3, 
50.14 	paragraph (d), must be destroyed by the court services agency when ordered to do so by the 
50.15 	local welfare agency that released the data. The local welfare agency or agency responsible 
50.16 	for assessing or investigating the report shall order destruction of the data when other records 
50.17 	relating to the assessment or investigation are destroyed under this subdivision.

50.18 	Sec. 28. COMMUNITY RESOURCE CENTERS.
50.19 		Subdivision 1.Definitions. (a) For purposes of this section, the following definitions 
50.20 	apply:
50.21 	(b) "Commissioner" means the commissioner of human services or the commissioner's 
50.22 	designee.
50.23 	(c) "Communities and families furthest from opportunity" means any community or 
50.24 	family that experiences inequities in accessing supports and services due to the community's 
50.25 	or family's circumstances, including but not limited to racism, income, disability, language, 
50.26 	gender, and geography.
50.27 	(d) "Community resource center" means a community-based coordinated point of entry 
50.28 	that provides relationship-based, culturally responsive service navigation and other supportive 
50.29 	services for expecting and parenting families and youth.
50.30 	(e) "Culturally responsive, relationship-based service navigation" means aiding families 
50.31 	in finding services and supports that are meaningful to them in ways that are built on trust 
50.32 	and that use cultural values, beliefs, and practices of families, communities, indigenous 
50.33 	families, and Tribal Nations for case planning, service design, and decision-making processes.
51.1 	(f) "Expecting and parenting family" means any configuration of parents, grandparents, 
51.2 	guardians, foster parents, kinship caregivers, and youth who are pregnant or expecting or 
51.3 	have children and youth they care for and support.
51.4 	(g) "Protective factors" means conditions or attributes of individuals, families, 
51.5 	communities, and the larger society that mitigate risk and promote the healthy development 
51.6 	and well-being of children, youth, and families, which are strengths that help to buffer and 
51.7 	support families.
51.8 		Subd. 2.Community resource centers established. The commissioner in consultation 
51.9 	with other state agencies, partners, and the Community Resource Center Advisory Council 
51.10 	may award grants to support planning, implementation, and evaluation of community 
51.11 	resource centers to provide relationship-based, culturally responsive service navigation, 
51.12 	parent, family, and caregiver supports to expecting and parenting families with a focus on 
51.13 	ensuring equitable access to programs and services that promote protective factors and 
51.14 	support children and families.
51.15 		Subd. 3.Commissioner's duties; related infrastructure. The commissioner in 
51.16 	consultation with the Community Resource Center Advisory Council shall:
51.17 	(1) develop a request for proposals to support community resource centers;
51.18 	(2) provide outreach and technical assistance to support applicants with data or other 
51.19 	matters pertaining to equity of access to funding;
51.20 	(3) provide technical assistance to grantees including but not limited to skill building 
51.21 	and professional development, trainings, evaluation, communities of practice, networking, 
51.22 	and trauma informed mental health consultation;
51.23 	(4) provide data collection and IT support; and
51.24 	(5) provide grant coordination and management focused on promoting equity and 
51.25 	accountability.
51.26 		Subd. 4.Grantee duties. At a minimum, grantees shall:
51.27 	(1) provide culturally responsive, relationship-based service navigation and supports for 
51.28 	expecting and parenting families;
51.29 	(2) improve community engagement and feedback loops to support continuous 
51.30 	improvement and program planning to better promote protective factors;
51.31 	(3) demonstrate community-based planning with multiple partners;
52.1 	(4) develop or use an existing parent and family advisory council consisting of community 
52.2 	members with lived expertise to advise the work of the grantee; and
52.3 	(5) participate in program evaluation, data collection, and technical assistance activities.
52.4 		Subd. 5.Eligibility. (a) Organizations eligible to receive grant funding under this section 
52.5 	include:
52.6 	(1) community-based organizations, Tribal Nations, urban Indian organizations, local 
52.7 	and county government agencies, schools, nonprofit agencies or any cooperative of these 
52.8 	organizations; and
52.9 	(2) organizations or cooperatives supporting communities and families furthest from 
52.10 	opportunity.
52.11 	(b) Funds must not be used to supplant any state or federal funds received by any grantee.
52.12 		Subd. 6.Community Resource Center Advisory Council; establishment and 
52.13 	duties. (a) The commissioner in consultation with other relevant state agencies shall appoint 
52.14 	members to the Community Resource Center Advisory Council.
52.15 	(b) Membership must be demographically and geographically diverse and include:
52.16 	(1) parents and family members with lived experience and who are furthest from 
52.17 	opportunity;
52.18 	(2) community-based organizations serving families furthest from opportunity;
52.19 	(3) Tribal and urban American Indian representatives;
52.20 	(4) county government representatives;
52.21 	(5) school and school district representatives; and
52.22 	(6) state partner representatives.
52.23 	(b) Duties of the Community Resource Center Advisory Council shall include but are 
52.24 	not limited to:
52.25 	(1) advising the commissioner on the development and funding of a network of 
52.26 	community resource centers;
52.27 	(2) advising the commissioner on the development of a request for proposal and grant 
52.28 	award processes;
52.29 	(3) advising the commissioner on the development of program outcomes and 
52.30 	accountability measures; and
53.1 	(4) advising the commissioner on ongoing oversight and necessary support in the 
53.2 	implementation of the community resource centers.
53.3 		Subd. 7.Grantee reporting. Grantees must report program data and outcomes in a 
53.4 	manner determined by the commissioner and the Community Resource Center Advisory 
53.5 	Council.
53.6 		Subd. 8.Evaluation. The commissioner in partnership with the Community Resource 
53.7 	Center Advisory Council shall develop an outcome and evaluation plan. A biannual report 
53.8 	must be developed that reflects the duties of the Community Resource Center Advisory 
53.9 	Council in subdivision 6 and may describe outcomes and impacts related to equity, 
53.10 	community partnerships, program and service availability, child development, family 
53.11 	well-being, and child welfare system involvement.

53.12 	Sec. 29. DIRECTION TO COMMISSIONER OF HUMAN SERVICES; FOSTER 
53.13 	CARE FEDERAL CASH ASSISTANCE BENEFITS PRESERVATION.
 53.14 	(a) The commissioner of human services must develop a plan to preserve and make 
53.15 	available the income and resources attributable to a child in foster care to meet the best 
53.16 	interests of the child. The plan must include recommendations on:
53.17 	(1) policies for youth and caregiver access to preserved federal cash assistance benefit 
53.18 	payments;
53.19 	(2) representative payees for children in voluntary foster care for treatment pursuant to 
53.20 	Minnesota Statutes, chapter 260D; and
53.21 	(3) family preservation and reunification.
53.22 	(b) For purposes of this section, "income and resources attributed to a child" means all 
53.23 	benefits from programs administered by the Social Security Administration, including but 
53.24 	not limited to retirement, survivors benefits, disability insurance programs, Supplemental 
53.25 	Security Income, veterans benefits, and railroad retirement benefits.
53.26 	(c) When developing the plan under this section, the commissioner shall consult or 
53.27 	engage with:
53.28 	(1) individuals or entities with experience in managing trusts and investment;
53.29 	(2) individuals or entities with expertise in providing tax advice;
53.30 	(3) individuals or entities with expertise in preserving assets to avoid negative impact 
53.31 	on public assistance eligibility;
54.1 	(4) other relevant state agencies;
54.2 	(5) Tribal social services agencies;
54.3 	(6) counties;
54.4 	(7) the Children's Justice Initiative;
54.5 	(8) organizations that serve and advocate for children and families in the child protection 
54.6 	system;
54.7 	(9) parents, legal custodians, foster families, and kinship caregivers, to the extent possible;
54.8 	(10) youth who have been or are currently in out-of-home placement; and
54.9 	(11) other relevant stakeholders.
54.10 	(d) By December 15, 2023, each county shall provide the following data for fiscal years 
54.11 	2019 and 2021 to the commissioner in a form prescribed by the commissioner:
54.12 	(1) the nonduplicated number of children in foster care in the county who received 
54.13 	income and resources attributable to the child as defined in paragraph (b);
54.14 	(2) the number of children for whom the county was the representative payee for income 
54.15 	and resources attributable to the child; and
54.16 	(3) the amount of money that the county collected from income and resources attributable 
54.17 	to the child as the representative payee for children in the county.
54.18 	(e) By January 15, 2025, the commissioner shall submit a report to the chairs and ranking 
54.19 	minority members of the legislative committees with jurisdiction over human services and 
54.20 	child welfare outlining the plan developed under this section. The report must include a 
54.21 	projected timeline for implementing the plan, estimated implementation costs, and any 
54.22 	legislative actions that may be required to implement the plan. The report must also include 
54.23 	data provided by counties related to the requirements for the parent or custodian of a child 
54.24 	to reimburse a county for the cost of care, examination, or treatment in subdivision (f).
54.25 	(f) By December 15, 2023, every county shall provide the commissioner of human 
54.26 	services with the following data from fiscal years 2019, 2020, and 2021 in a form prescribed 
54.27 	by the commissioner:
54.28 	(1) the nonduplicated number of cases in which the county received payments from a 
54.29 	parent or custodian of a child to reimburse the cost of care, examination, or treatment; and
54.30 	(2) the total amount in payments that the county collected from a parent or custodian of 
54.31 	a child to reimburse the cost of care, examination or treatment.
55.1 	(g) The commissioner may contract with an individual or entity to collect and analyze 
55.2 	financial data reported by counties in paragraphs (d) and (f).

55.3 	ARTICLE 3
55.4 	CHILD SUPPORT

55.5 	Section 1. Minnesota Statutes 2022, section 518A.31, is amended to read:
55.6 	518A.31 SOCIAL SECURITY OR VETERANS' BENEFIT PAYMENTS 
55.7 	RECEIVED ON BEHALF OF THE CHILD.
55.8 	(a) The amount of the monthly Social Security benefits or apportioned veterans' benefits 
55.9 	provided for a joint child shall be included in the gross income of the parent on whose 
55.10 	eligibility the benefits are based.
55.11 	(b) The amount of the monthly survivors' and dependents' educational assistance provided 
55.12 	for a joint child shall be included in the gross income of the parent on whose eligibility the 
55.13 	benefits are based.
55.14 	(c) If Social Security or apportioned veterans' benefits are provided for a joint child 
55.15 	based on the eligibility of the obligor, and are received by the obligee as a representative 
55.16 	payee for the child or by the child attending school, then the amount of the benefits shall 
55.17 	also be subtracted from the obligor's net child support obligation as calculated pursuant to 
55.18 	section 518A.34.
55.19 	(d) If the survivors' and dependents' educational assistance is provided for a joint child 
55.20 	based on the eligibility of the obligor, and is received by the obligee as a representative 
55.21 	payee for the child or by the child attending school, then the amount of the assistance shall 
55.22 	also be subtracted from the obligor's net child support obligation as calculated under section 
55.23 	518A.34.
55.24 	(e) Upon a motion to modify child support, any regular or lump sum payment of Social 
55.25 	Security or apportioned veterans' benefit received by the obligee for the benefit of the joint 
55.26 	child based upon the obligor's disability prior to filing the motion to modify may be used 
55.27 	to satisfy arrears that remain due for the period of time for which the benefit was received. 
55.28 	This paragraph applies only if the derivative benefit was not considered in the guidelines 
55.29 	calculation of the previous child support order.

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

56.1 	Sec. 2. Minnesota Statutes 2022, section 518A.32, subdivision 3, is amended to read:
56.2 		Subd. 3.Parent not considered voluntarily unemployed, underemployed, or employed 
56.3 	on a less than full-time basis. A parent is not considered voluntarily unemployed, 
56.4 	underemployed, or employed on a less than full-time basis upon a showing by the parent 
56.5 	that:
56.6 	(1) the unemployment, underemployment, or employment on a less than full-time basis 
56.7 	is temporary and will ultimately lead to an increase in income;
56.8 	(2) the unemployment, underemployment, or employment on a less than full-time basis 
56.9 	represents a bona fide career change that outweighs the adverse effect of that parent's 
56.10 	diminished income on the child; or
56.11 	(3) the unemployment, underemployment, or employment on a less than full-time basis 
56.12 	is because a parent is physically or mentally incapacitated or due to incarceration.; or
56.13 	(4) a governmental agency authorized to determine eligibility for general assistance or 
56.14 	supplemental Social Security income has determined that the individual is eligible to receive 
56.15 	general assistance or supplemental Social Security income. Actual income earned by the 
56.16 	parent may be considered for the purpose of calculating child support.

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

56.18 	Sec. 3. Minnesota Statutes 2022, section 518A.32, subdivision 4, is amended to read:
56.19 		Subd. 4.TANF or MFIP recipient. If the parent of a joint child is a recipient of a 
56.20 	temporary assistance to a needy family (TANF) cash grant, or comparable state-funded 
56.21 	Minnesota family investment program (MFIP) benefits, no potential income is to be imputed 
56.22 	to that parent.

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

56.24 	Sec. 4. Minnesota Statutes 2022, section 518A.34, is amended to read:
56.25 	518A.34 COMPUTATION OF CHILD SUPPORT OBLIGATIONS.
56.26 	(a) To determine the presumptive child support obligation of a parent, the court shall 
56.27 	follow the procedure set forth in this section.
56.28 	(b) To determine the obligor's basic support obligation, the court shall:
56.29 	(1) determine the gross income of each parent under section 518A.29;
57.1 	(2) calculate the parental income for determining child support (PICS) of each parent, 
57.2 	by subtracting from the gross income the credit, if any, for each parent's nonjoint children 
57.3 	under section 518A.33;
57.4 	(3) determine the percentage contribution of each parent to the combined PICS by 
57.5 	dividing the combined PICS into each parent's PICS;
57.6 	(4) determine the combined basic support obligation by application of the guidelines in 
57.7 	section 518A.35;
57.8 	(5) determine each parent's share of the combined basic support obligation by multiplying 
57.9 	the percentage figure from clause (3) by the combined basic support obligation in clause 
57.10 	(4); and
57.11 	(6) apply the parenting expense adjustment formula provided in section 518A.36 to 
57.12 	determine the obligor's basic support obligation.
57.13 	(c) If the parents have split custody of joint children, child support must be calculated 
57.14 	for each joint child as follows:
57.15 	(1) the court shall determine each parent's basic support obligation under paragraph (b) 
57.16 	and include the amount of each parent's obligation in the court order. If the basic support 
57.17 	calculation results in each parent owing support to the other, the court shall offset the higher 
57.18 	basic support obligation with the lower basic support obligation to determine the amount 
57.19 	to be paid by the parent with the higher obligation to the parent with the lower obligation. 
57.20 	For the purpose of the cost-of-living adjustment required under section 518A.75, the 
57.21 	adjustment must be based on each parent's basic support obligation prior to offset. For the 
57.22 	purposes of this paragraph, "split custody" means that there are two or more joint children 
57.23 	and each parent has at least one joint child more than 50 percent of the time;
57.24 	(2) if each parent pays all child care expenses for at least one joint child, the court shall 
57.25 	calculate child care support for each joint child as provided in section 518A.40. The court 
57.26 	shall determine each parent's child care support obligation and include the amount of each 
57.27 	parent's obligation in the court order. If the child care support calculation results in each 
57.28 	parent owing support to the other, the court shall offset the higher child care support 
57.29 	obligation with the lower child care support obligation to determine the amount to be paid 
57.30 	by the parent with the higher obligation to the parent with the lower obligation; and
57.31 	(3) if each parent pays all medical or dental insurance expenses for at least one joint 
57.32 	child, medical support shall be calculated for each joint child as provided in section 518A.41. 
57.33 	The court shall determine each parent's medical support obligation and include the amount 
58.1 	of each parent's obligation in the court order. If the medical support calculation results in 
58.2 	each parent owing support to the other, the court shall offset the higher medical support 
58.3 	obligation with the lower medical support obligation to determine the amount to be paid by 
58.4 	the parent with the higher obligation to the parent with the lower obligation. Unreimbursed 
58.5 	and uninsured medical expenses are not included in the presumptive amount of support 
58.6 	owed by a parent and are calculated and collected as provided in section 518A.41.
58.7 	(d) The court shall determine the child care support obligation for the obligor as provided 
58.8 	in section 518A.40.
58.9 	(e) The court shall determine the medical support obligation for each parent as provided 
58.10 	in section 518A.41. Unreimbursed and uninsured medical expenses are not included in the 
58.11 	presumptive amount of support owed by a parent and are calculated and collected as described 
58.12 	in section 518A.41.
58.13 	(f) The court shall determine each parent's total child support obligation by adding 
58.14 	together each parent's basic support, child care support, and health care coverage obligations 
58.15 	as provided in this section.
58.16 	(g) If Social Security benefits or veterans' benefits are received by one parent as a 
58.17 	representative payee for a joint child based on the other parent's eligibility, the court shall 
58.18 	subtract the amount of benefits from the other parent's net child support obligation, if any.
58.19 	Any benefit received by the obligee for the benefit of the joint child based upon the obligor's 
58.20 	disability or past earnings in any given month in excess of the child support obligation must 
58.21 	not be treated as an arrearage payment or a future payment.
58.22 	(h) The final child support order shall separately designate the amount owed for basic 
58.23 	support, child care support, and medical support. If applicable, the court shall use the 
58.24 	self-support adjustment and minimum support adjustment under section 518A.42 to determine 
58.25 	the obligor's child support obligation.

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

58.27 	Sec. 5. Minnesota Statutes 2022, section 518A.41, is amended to read:
58.28 	518A.41 MEDICAL SUPPORT.
58.29 		Subdivision 1.Definitions. The definitions in this subdivision apply to this chapter and 
58.30 	chapter 518.
58.31 	(a) "Health care coverage" means medical, dental, or other health care benefits that are 
58.32 	provided by one or more health plans. Health care coverage does not include any form of 
59.1 	public coverage private health care coverage, including fee for service, health maintenance 
59.2 	organization, preferred provider organization, and other types of private health care coverage. 
59.3 	Health care coverage also means public health care coverage under which medical or dental 
59.4 	services could be provided to a dependent child.
59.5 	(b) "Health carrier" means a carrier as defined in sections 62A.011, subdivision 2, and 
59.6 	62L.02, subdivision 16.
59.7 	(c) "Health plan" (b) "Private health care coverage" means a health plan, other than any 
59.8 	form of public coverage, that provides medical, dental, or other health care benefits and is:
59.9 	(1) provided on an individual or group basis;
59.10 	(2) provided by an employer or union;
59.11 	(3) purchased in the private market; or
59.12 	(4) provided through MinnesotaCare under chapter 256L; or
59.13 	(4) (5) available to a person eligible to carry insurance for the joint child, including a 
59.14 	party's spouse or parent.
59.15 	Health plan Private health care coverage includes, but is not limited to, a health plan meeting 
59.16 	the definition under section 62A.011, subdivision 3, except that the exclusion of coverage 
59.17 	designed solely to provide dental or vision care under section 62A.011, subdivision 3, clause 
59.18 	(6), does not apply to the definition of health plan private health care coverage under this 
59.19 	section; a group health plan governed under the federal Employee Retirement Income 
59.20 	Security Act of 1974 (ERISA); a self-insured plan under sections 43A.23 to 43A.317 and 
59.21 	471.617; and a policy, contract, or certificate issued by a community-integrated service 
59.22 	network licensed under chapter 62N.
59.23 	(c) "Public health care coverage" means health care benefits provided by any form of 
59.24 	medical assistance under chapter 256B. Public health care coverage does not include 
59.25 	MinnesotaCare or health plans subsidized by federal premium tax credits or federal 
59.26 	cost-sharing reductions.
59.27 	(d) "Medical support" means providing health care coverage for a joint child by carrying 
59.28 	health care coverage for the joint child or by contributing to the cost of health care coverage,
59.29 	public coverage, unreimbursed medical health-related expenses, and uninsured medical
59.30 	health-related expenses of the joint child.
59.31 	(e) "National medical support notice" means an administrative notice issued by the public 
59.32 	authority to enforce health insurance provisions of a support order in accordance with Code 
60.1 	of Federal Regulations, title 45, section 303.32, in cases where the public authority provides 
60.2 	support enforcement services.
60.3 	(f) "Public coverage" means health care benefits provided by any form of medical 
60.4 	assistance under chapter 256B. Public coverage does not include MinnesotaCare or health 
60.5 	plans subsidized by federal premium tax credits or federal cost-sharing reductions.
60.6 	(g) (f) "Uninsured medical health-related expenses" means a joint child's reasonable and 
60.7 	necessary health-related medical and dental expenses if the joint child is not covered by a 
60.8 	health plan or public coverage private health insurance care when the expenses are incurred.
60.9 	(h) (g) "Unreimbursed medical health-related expenses" means a joint child's reasonable 
60.10 	and necessary health-related medical and dental expenses if a joint child is covered by a 
60.11 	health plan or public coverage health care coverage and the plan or health care coverage 
60.12 	does not pay for the total cost of the expenses when the expenses are incurred. Unreimbursed 
60.13 	medical health-related expenses do not include the cost of premiums. Unreimbursed medical
60.14 	health-related expenses include, but are not limited to, deductibles, co-payments, and 
60.15 	expenses for orthodontia, and prescription eyeglasses and contact lenses, but not 
60.16 	over-the-counter medications if coverage is under a health plan provided through health 
60.17 	care coverage.
60.18 		Subd. 2.Order. (a) A completed national medical support notice issued by the public 
60.19 	authority or a court order that complies with this section is a qualified medical child support 
60.20 	order under the federal Employee Retirement Income Security Act of 1974 (ERISA), United 
60.21 	States Code, title 29, section 1169(a).
60.22 	(b) Every order addressing child support must state:
60.23 	(1) the names, last known addresses, and Social Security numbers of the parents and the 
60.24 	joint child that is a subject of the order unless the court prohibits the inclusion of an address 
60.25 	or Social Security number and orders the parents to provide the address and Social Security 
60.26 	number to the administrator of the health plan;
60.27 	(2) if a joint child is not presently enrolled in health care coverage, whether appropriate 
60.28 	health care coverage for the joint child is available and, if so, state:
60.29 	(i) the parents' responsibilities for carrying health care coverage;
60.30 	(ii) the cost of premiums and how the cost is allocated between the parents; and
60.31 	(iii) the circumstances, if any, under which an obligation to provide private health care 
60.32 	coverage for the joint child will shift from one parent to the other; and
61.1 	(3) if appropriate health care coverage is not available for the joint child, (iv) whether 
61.2 	a contribution for medical support public health care coverage is required; and
61.3 	(4) (3) how unreimbursed or uninsured medical health-related expenses will be allocated 
61.4 	between the parents.
61.5 		Subd. 3.Determining appropriate health care coverage. Public health care coverage 
61.6 	is presumed appropriate. In determining whether a parent has appropriate private health 
61.7 	care coverage for the joint child, the court must consider the following factors:
61.8 	(1) comprehensiveness of private health care coverage providing medical benefits. 
61.9 	Dependent private health care coverage providing medical benefits is presumed 
61.10 	comprehensive if it includes medical and hospital coverage and provides for preventive, 
61.11 	emergency, acute, and chronic care; or if it meets the minimum essential coverage definition 
61.12 	in United States Code, title 26, section 5000A(f). If both parents have private health care 
61.13 	coverage providing medical benefits that is presumed comprehensive under this paragraph, 
61.14 	the court must determine which parent's private health care coverage is more comprehensive 
61.15 	by considering what other benefits are included in the private health care coverage;
61.16 	(2) accessibility. Dependent private health care coverage is accessible if the covered 
61.17 	joint child can obtain services from a health plan provider with reasonable effort by the 
61.18 	parent with whom the joint child resides. Private health care coverage is presumed accessible 
61.19 	if:
61.20 	(i) primary care is available within 30 minutes or 30 miles of the joint child's residence 
61.21 	and specialty care is available within 60 minutes or 60 miles of the joint child's residence;
61.22 	(ii) the private health care coverage is available through an employer and the employee 
61.23 	can be expected to remain employed for a reasonable amount of time; and
61.24 	(iii) no preexisting conditions exist to unduly delay enrollment in private health care 
61.25 	coverage;
61.26 	(3) the joint child's special medical needs, if any; and
61.27 	(4) affordability. Dependent private health care coverage is presumed affordable if it is 
61.28 	reasonable in cost. If both parents have health care coverage available for a joint child that 
61.29 	is comparable with regard to comprehensiveness of medical benefits, accessibility, and the 
61.30 	joint child's special needs, the least costly health care coverage is presumed to be the most 
61.31 	appropriate health care coverage for the joint child the premium to cover the marginal cost 
61.32 	of the joint child does not exceed five percent of the parents' combined monthly PICS. A 
61.33 	court may additionally consider high deductibles and the cost to enroll the parent if the 
62.1 	parent must enroll themselves in private health care coverage to access private health care 
62.2 	coverage for the child.
62.3 		Subd. 4.Ordering health care coverage. (a) If a joint child is presently enrolled in 
62.4 	health care coverage, the court must order that the parent who currently has the joint child 
62.5 	enrolled continue that enrollment unless the parties agree otherwise or a party requests a 
62.6 	change in coverage and the court determines that other health care coverage is more 
62.7 	appropriate.
62.8 	(b) If a joint child is not presently enrolled in health care coverage providing medical 
62.9 	benefits, upon motion of a parent or the public authority, the court must determine whether 
62.10 	one or both parents have appropriate health care coverage providing medical benefits for 
62.11 	the joint child.
62.12 	(a) If a joint child is presently enrolled in health care coverage, the court shall order that 
62.13 	the parent who currently has the joint child enrolled in health care coverage continue that 
62.14 	enrollment if the health care coverage is appropriate as defined under subdivision 3.
62.15 	(c) (b) If only one parent has appropriate health care coverage providing medical benefits 
62.16 	available, the court must order that parent to carry the coverage for the joint child.
62.17 	(d) (c) If both parents have appropriate health care coverage providing medical benefits 
62.18 	available, the court must order the parent with whom the joint child resides to carry the 
62.19 	health care coverage for the joint child, unless:
62.20 	(1) a party expresses a preference for private health care coverage providing medical 
62.21 	benefits available through the parent with whom the joint child does not reside;
62.22 	(2) the parent with whom the joint child does not reside is already carrying dependent 
62.23 	private health care coverage providing medical benefits for other children and the cost of 
62.24 	contributing to the premiums of the other parent's health care coverage would cause the 
62.25 	parent with whom the joint child does not reside extreme hardship; or
62.26 	(3) the parties agree as to which parent will carry health care coverage providing medical 
62.27 	benefits and agree on the allocation of costs.
62.28 	(e) (d) If the exception in paragraph (d) (c), clause (1) or (2), applies, the court must 
62.29 	determine which parent has the most appropriate health care coverage providing medical 
62.30 	benefits available and order that parent to carry health care coverage for the joint child.
62.31 	(f) (e) If neither parent has appropriate health care coverage available, the court must 
62.32 	order the parents to:
63.1 	(1) contribute toward the actual health care costs of the joint children based on a pro 
63.2 	rata share; or.
63.3 	(2) if the joint child is receiving any form of public coverage, the parent with whom the 
63.4 	joint child does not reside shall contribute a monthly amount toward the actual cost of public 
63.5 	coverage. The amount of the noncustodial parent's contribution is determined by applying 
63.6 	the noncustodial parent's PICS to the premium scale for MinnesotaCare under section 
63.7 	256L.15, subdivision 2, paragraph (d). If the noncustodial parent's PICS meets the eligibility 
63.8 	requirements for MinnesotaCare, the contribution is the amount the noncustodial parent 
63.9 	would pay for the child's premium. If the noncustodial parent's PICS exceeds the eligibility 
63.10 	requirements, the contribution is the amount of the premium for the highest eligible income 
63.11 	on the premium scale for MinnesotaCare under section 256L.15, subdivision 2, paragraph 
63.12 	(d). For purposes of determining the premium amount, the noncustodial parent's household 
63.13 	size is equal to one parent plus the child or children who are the subject of the child support 
63.14 	order. The custodial parent's obligation is determined under the requirements for public 
63.15 	coverage as set forth in chapter 256B; or
63.16 	(3) if the noncustodial parent's PICS meet the eligibility requirement for public coverage 
63.17 	under chapter 256B or the noncustodial parent receives public assistance, the noncustodial 
63.18 	parent must not be ordered to contribute toward the cost of public coverage.
63.19 	(g) (f) If neither parent has appropriate health care coverage available, the court may 
63.20 	order the parent with whom the child resides to apply for public health care coverage for 
63.21 	the child.
63.22 	(h) The commissioner of human services must publish a table with the premium schedule 
63.23 	for public coverage and update the chart for changes to the schedule by July 1 of each year.
63.24 	(i) (g) If a joint child is not presently enrolled in private health care coverage providing 
63.25 	dental benefits, upon motion of a parent or the public authority, the court must determine 
63.26 	whether one or both parents have appropriate dentalprivate health care coverage providing 
63.27 	dental benefits for the joint child, and the court may order a parent with appropriate dental
63.28 	private health care coverage providing dental benefits available to carry the health care 
63.29 	coverage for the joint child.
63.30 	(j) (h) If a joint child is not presently enrolled in available private health care coverage 
63.31 	providing benefits other than medical benefits or dental benefits, upon motion of a parent 
63.32 	or the public authority, the court may determine whether that other private health care 
63.33 	coverage providing other health benefits for the joint child is appropriate, and the court may 
64.1 	order a parent with that appropriate private health care coverage available to carry the 
64.2 	coverage for the joint child.
64.3 		Subd. 5.Medical support costs; unreimbursed and uninsured medical health-related
64.4 	expenses. (a) Unless otherwise agreed to by the parties and approved by the court, the court 
64.5 	must order that the cost of private health care coverage and all unreimbursed and uninsured 
64.6 	medical health-related expenses under the health plan be divided between the obligor and 
64.7 	obligee based on their proportionate share of the parties' combined monthly PICS. The 
64.8 	amount allocated for medical support is considered child support but is not subject to a 
64.9 	cost-of-living adjustment under section 518A.75.
64.10 	(b) If a party owes a joint child basic support obligation for a joint child and is ordered 
64.11 	to carry private health care coverage for the joint child, and the other party is ordered to 
64.12 	contribute to the carrying party's cost for coverage, the carrying party's child basic support 
64.13 	payment must be reduced by the amount of the contributing party's contribution.
64.14 	(c) If a party owes a joint childbasic support obligation for a joint child and is ordered 
64.15 	to contribute to the other party's cost for carrying private health care coverage for the joint 
64.16 	child, the contributing party's child support payment must be increased by the amount of 
64.17 	the contribution. The contribution toward private health care coverage must not be charged 
64.18 	in any month in which the party ordered to carry private health care coverage fails to maintain 
64.19 	private coverage.
64.20 	(d) If the party ordered to carry private health care coverage for the joint child already 
64.21 	carries dependent private health care coverage for other dependents and would incur no 
64.22 	additional premium costs to add the joint child to the existing health care coverage, the court 
64.23 	must not order the other party to contribute to the premium costs for health care coverage 
64.24 	of the joint child.
64.25 	(e) If a party ordered to carry private health care coverage for the joint child does not 
64.26 	already carry dependent private health care coverage but has other dependents who may be 
64.27 	added to the ordered health care coverage, the full premium costs of the dependent private 
64.28 	health care coverage must be allocated between the parties in proportion to the party's share 
64.29 	of the parties' combined monthly PICS, unless the parties agree otherwise.
64.30 	(f) If a party ordered to carry private health care coverage for the joint child is required 
64.31 	to enroll in a health plan so that the joint child can be enrolled in dependent private health 
64.32 	care coverage under the plan, the court must allocate the costs of the dependent private 
64.33 	health care coverage between the parties. The costs of the private health care coverage for 
65.1 	the party ordered to carry the health care coverage for the joint child must not be allocated 
65.2 	between the parties.
65.3 	(g) If the joint child is receiving any form of public health care coverage:
65.4 	(1) the parent with whom the joint child does not reside shall contribute a monthly 
65.5 	amount toward the actual cost of public health care coverage. The amount of the noncustodial 
65.6 	parent's contribution is determined by applying the noncustodial parent's PICS to the premium 
65.7 	scale for MinnesotaCare under section 256L.15, subdivision 2, paragraph (d). If the 
65.8 	noncustodial parent's PICS meets the eligibility requirements for MinnesotaCare, the 
65.9 	contribution is the amount that the noncustodial parent would pay for the child's premium;
65.10 	(2) if the noncustodial parent's PICS exceeds the eligibility requirements, the contribution 
65.11 	is the amount of the premium for the highest eligible income on the premium scale for 
65.12 	MinnesotaCare under section 256L.15, subdivision 2, paragraph (d). For purposes of 
65.13 	determining the premium amount, the noncustodial parent's household size is equal to one 
65.14 	parent plus the child or children who are the subject of the order;
65.15 	(3) the custodial parent's obligation is determined under the requirements for public 
65.16 	health care coverage in chapter 256B; or
65.17 	(4) if the noncustodial parent's PICS is less than 200 percent of the federal poverty 
65.18 	guidelines for one person or the noncustodial parent receives public assistance, the 
65.19 	noncustodial parent must not be ordered to contribute toward the cost of public health care 
65.20 	coverage.
65.21 	(h) The commissioner of human services must publish a table for section 256L.15, 
65.22 	subdivision 2, paragraph (d), and update the table with changes to the schedule by July 1 
65.23 	of each year.
65.24 		Subd. 6.Notice or court order sent to party's employer, union, or health carrier. (a) 
65.25 	The public authority must forward a copy of the national medical support notice or court 
65.26 	order for private health care coverage to the party's employer within two business days after 
65.27 	the date the party is entered into the work reporting system under section 256.998.
65.28 	(b) The public authority or a party seeking to enforce an order for private health care 
65.29 	coverage must forward a copy of the national medical support notice or court order to the 
65.30 	obligor's employer or union, or to the health carrier under the following circumstances:
65.31 	(1) the party ordered to carry private health care coverage for the joint child fails to 
65.32 	provide written proof to the other party or the public authority, within 30 days of the effective 
66.1 	date of the court order, that the party has applied for private health care coverage for the 
66.2 	joint child;
66.3 	(2) the party seeking to enforce the order or the public authority gives written notice to 
66.4 	the party ordered to carry private health care coverage for the joint child of its intent to 
66.5 	enforce medical support. The party seeking to enforce the order or public authority must 
66.6 	mail the written notice to the last known address of the party ordered to carry private health 
66.7 	care coverage for the joint child; and
66.8 	(3) the party ordered to carry private health care coverage for the joint child fails, within 
66.9 	15 days after the date on which the written notice under clause (2) was mailed, to provide 
66.10 	written proof to the other party or the public authority that the party has applied for private 
66.11 	health care coverage for the joint child.
66.12 	(c) The public authority is not required to forward a copy of the national medical support 
66.13 	notice or court order to the obligor's employer or union, or to the health carrier, if the court 
66.14 	orders private health care coverage for the joint child that is not employer-based or 
66.15 	union-based coverage.
66.16 		Subd. 7.Employer or union requirements. (a) An employer or union must forward 
66.17 	the national medical support notice or court order to its health plan within 20 business days 
66.18 	after the date on the national medical support notice or after receipt of the court order.
66.19 	(b) Upon determination by an employer's or union's health plan administrator that a joint 
66.20 	child is eligible to be covered under the health plan, the employer or union and health plan 
66.21 	must enroll the joint child as a beneficiary in the health plan, and the employer must withhold 
66.22 	any required premiums from the income or wages of the party ordered to carry health care 
66.23 	coverage for the joint child.
66.24 	(c) If enrollment of the party ordered to carry private health care coverage for a joint 
66.25 	child is necessary to obtain dependent private health care coverage under the plan, and the 
66.26 	party is not enrolled in the health plan, the employer or union must enroll the party in the 
66.27 	plan.
66.28 	(d) Enrollment of dependents and, if necessary, the party ordered to carry private health 
66.29 	care coverage for the joint child must be immediate and not dependent upon open enrollment 
66.30 	periods. Enrollment is not subject to the underwriting policies under section 62A.048.
66.31 	(e) Failure of the party ordered to carry private health care coverage for the joint child 
66.32 	to execute any documents necessary to enroll the dependent in the health plan does not 
66.33 	affect the obligation of the employer or union and health plan to enroll the dependent in a 
67.1 	plan. Information and authorization provided by the public authority, or by a party or 
67.2 	guardian, is valid for the purposes of meeting enrollment requirements of the health plan.
67.3 	(f) An employer or union that is included under the federal Employee Retirement Income 
67.4 	Security Act of 1974 (ERISA), United States Code, title 29, section 1169(a), may not deny 
67.5 	enrollment to the joint child or to the parent if necessary to enroll the joint child based on 
67.6 	exclusionary clauses described in section 62A.048.
67.7 	(g) A new employer or union of a party who is ordered to provide private health care 
67.8 	coverage for a joint child must enroll the joint child in the party's health plan as required 
67.9 	by a national medical support notice or court order.
67.10 		Subd. 8.Health plan requirements. (a) If a health plan administrator receives a 
67.11 	completed national medical support notice or court order, the plan administrator must notify 
67.12 	the parties, and the public authority if the public authority provides support enforcement 
67.13 	services, within 40 business days after the date of the notice or after receipt of the court 
67.14 	order, of the following:
67.15 	(1) whether health care coverage is available to the joint child under the terms of the 
67.16 	health plan and, if not, the reason why health care coverage is not available;
67.17 	(2) whether the joint child is covered under the health plan;
67.18 	(3) the effective date of the joint child's coverage under the health plan; and
67.19 	(4) what steps, if any, are required to effectuate the joint child's coverage under the health 
67.20 	plan.
67.21 	(b) If the employer or union offers more than one plan and the national medical support 
67.22 	notice or court order does not specify the plan to be carried, the plan administrator must 
67.23 	notify the parents and the public authority if the public authority provides support 
67.24 	enforcement services. When there is more than one option available under the plan, the 
67.25 	public authority, in consultation with the parent with whom the joint child resides, must 
67.26 	promptly select from available plan options.
67.27 	(c) The plan administrator must provide the parents and public authority, if the public 
67.28 	authority provides support enforcement services, with a notice of the joint child's enrollment, 
67.29 	description of the health care coverage, and any documents necessary to effectuate coverage.
67.30 	(d) The health plan must send copies of all correspondence regarding the private health 
67.31 	care coverage to the parents.
68.1 	(e) An insured joint child's parent's signature is a valid authorization to a health plan for 
68.2 	purposes of processing an insurance reimbursement payment to the medical services provider 
68.3 	or to the parent, if medical services have been prepaid by that parent.
68.4 		Subd. 9.Employer or union liability. (a) An employer or union that willfully fails to 
68.5 	comply with the order or notice is liable for any uninsured medical health-related expenses 
68.6 	incurred by the dependents while the dependents were eligible to be enrolled in the health 
68.7 	plan and for any other premium costs incurred because the employer or union willfully 
68.8 	failed to comply with the order or notice.
68.9 	(b) An employer or union that fails to comply with the order or notice is subject to a 
68.10 	contempt finding, a $250 civil penalty under section 518A.73, and is subject to a civil penalty 
68.11 	of $500 to be paid to the party entitled to reimbursement or the public authority. Penalties 
68.12 	paid to the public authority are designated for child support enforcement services.
68.13 		Subd. 10.Contesting enrollment. (a) A party may contest a joint child's enrollment in 
68.14 	a health plan on the limited grounds that the enrollment is improper due to mistake of fact 
68.15 	or that the enrollment meets the requirements of section 518.145.
68.16 	(b) If the party chooses to contest the enrollment, the party must do so no later than 15 
68.17 	days after the employer notifies the party of the enrollment by doing the following:
68.18 	(1) filing a motion in district court or according to section 484.702 and the expedited 
68.19 	child support process rules if the public authority provides support enforcement services;
68.20 	(2) serving the motion on the other party and public authority if the public authority 
68.21 	provides support enforcement services; and
68.22 	(3) securing a date for the matter to be heard no later than 45 days after the notice of 
68.23 	enrollment.
68.24 	(c) The enrollment must remain in place while the party contests the enrollment.
68.25 		Subd. 11.Disenrollment; continuation of coverage; coverage options. (a) Unless a 
68.26 	court order provides otherwise, a child for whom a party is required to provide private health 
68.27 	care coverage under this section must be covered as a dependent of the party until the child 
68.28 	is emancipated, until further order of the court, or as consistent with the terms of the health 
68.29 	care coverage.
68.30 	(b) The health carrier, employer, or union may not disenroll or eliminate health care 
68.31 	coverage for the child unless:
69.1 	(1) the health carrier, employer, or union is provided satisfactory written evidence that 
69.2 	the court order is no longer in effect;
69.3 	(2) the joint child is or will be enrolled in comparable private health care coverage 
69.4 	through another health plan that will take effect no later than the effective date of the 
69.5 	disenrollment;
69.6 	(3) the employee is no longer eligible for dependent health care coverage; or
69.7 	(4) the required premium has not been paid by or on behalf of the joint child.
69.8 	(c) The health plan must provide 30 days' written notice to the joint child's parents, and 
69.9 	the public authority if the public authority provides support enforcement services, before 
69.10 	the health plan disenrolls or eliminates the joint child's health care coverage.
69.11 	(d) A joint child enrolled in private health care coverage under a qualified medical child 
69.12 	support order, including a national medical support notice, under this section is a dependent 
69.13 	and a qualified beneficiary under the Consolidated Omnibus Budget and Reconciliation Act 
69.14 	of 1985 (COBRA), Public Law 99-272. Upon expiration of the order, the joint child is 
69.15 	entitled to the opportunity to elect continued health care coverage that is available under 
69.16 	the health plan. The employer or union must provide notice to the parties and the public 
69.17 	authority, if it provides support services, within ten days of the termination date.
69.18 	(e) If the public authority provides support enforcement services and a plan administrator 
69.19 	reports to the public authority that there is more than one coverage option available under 
69.20 	the health plan, the public authority, in consultation with the parent with whom the joint 
69.21 	child resides, must promptly select health care coverage from the available options.
69.22 		Subd. 12.Spousal or former spousal coverage. The court must require the parent with 
69.23 	whom the joint child does not reside to provide dependent private health care coverage for 
69.24 	the benefit of the parent with whom the joint child resides if the parent with whom the child 
69.25 	does not reside is ordered to provide dependent private health care coverage for the parties' 
69.26 	joint child and adding the other parent to the health care coverage results in no additional 
69.27 	premium cost.
69.28 		Subd. 13.Disclosure of information. (a) If the public authority provides support 
69.29 	enforcement services, the parties must provide the public authority with the following 
69.30 	information:
69.31 	(1) information relating to dependent health care coverage or public coverage available 
69.32 	for the benefit of the joint child for whom support is sought, including all information 
69.33 	required to be included in a medical support order under this section;
70.1 	(2) verification that application for court-ordered health care coverage was made within 
70.2 	30 days of the court's order; and
70.3 	(3) the reason that a joint child is not enrolled in court-ordered health care coverage, if 
70.4 	a joint child is not enrolled in health care coverage or subsequently loses health care coverage.
70.5 	(b) Upon request from the public authority under section 256.978, an employer, union, 
70.6 	or plan administrator, including an employer subject to the federal Employee Retirement 
70.7 	Income Security Act of 1974 (ERISA), United States Code, title 29, section 1169(a), must 
70.8 	provide the public authority the following information:
70.9 	(1) information relating to dependent private health care coverage available to a party 
70.10 	for the benefit of the joint child for whom support is sought, including all information 
70.11 	required to be included in a medical support order under this section; and
70.12 	(2) information that will enable the public authority to determine whether a health plan 
70.13 	is appropriate for a joint child, including, but not limited to, all available plan options, any 
70.14 	geographic service restrictions, and the location of service providers.
70.15 	(c) The employer, union, or plan administrator must not release information regarding 
70.16 	one party to the other party. The employer, union, or plan administrator must provide both 
70.17 	parties with insurance identification cards and all necessary written information to enable 
70.18 	the parties to utilize the insurance benefits for the covered dependent.
70.19 	(d) The public authority is authorized to release to a party's employer, union, or health 
70.20 	plan information necessary to verify availability of dependent private health care coverage, 
70.21 	or to establish, modify, or enforce medical support.
70.22 	(e) An employee must disclose to an employer if medical support is required to be 
70.23 	withheld under this section and the employer must begin withholding according to the terms 
70.24 	of the order and under section 518A.53. If an employee discloses an obligation to obtain 
70.25 	private health care coverage and health care coverage is available through the employer, 
70.26 	the employer must make all application processes known to the individual and enroll the 
70.27 	employee and dependent in the plan.
70.28 		Subd. 14.Child support enforcement services. The public authority must take necessary 
70.29 	steps to establish, enforce, and modify an order for medical support if the joint child receives 
70.30 	public assistance or a party completes an application for services from the public authority 
70.31 	under section 518A.51.
70.32 		Subd. 15.Enforcement. (a) Remedies available for collecting and enforcing child 
70.33 	support apply to medical support.
71.1 	(b) For the purpose of enforcement, the following are additional support:
71.2 	(1) the costs of individual or group health or hospitalization coverage;
71.3 	(2) dental coverage;
71.4 	(3) medical costs ordered by the court to be paid by either party, including health care 
71.5 	coverage premiums paid by the obligee because of the obligor's failure to obtain health care 
71.6 	coverage as ordered; and
71.7 	(4) liabilities established under this subdivision.
71.8 	(c) A party who fails to carry court-ordered dependent private health care coverage is 
71.9 	liable for the joint child's uninsured medical health-related expenses unless a court order 
71.10 	provides otherwise. A party's failure to carry court-ordered health care coverage, or to 
71.11 	provide other medical support as ordered, is a basis for modification of medical support 
71.12 	under section 518A.39, subdivision 8, unless it meets the presumption in section 518A.39, 
71.13 	subdivision 2.
71.14 	(d) Payments by the health carrier or employer for services rendered to the dependents 
71.15 	that are directed to a party not owed reimbursement must be endorsed over to and forwarded 
71.16 	to the vendor or appropriate party or the public authority. A party retaining insurance 
71.17 	reimbursement not owed to the party is liable for the amount of the reimbursement.
71.18 		Subd. 16.Offset. (a) If a party is the parent with primary physical custody as defined 
71.19 	in section 518A.26, subdivision 17, and is an obligor ordered to contribute to the other 
71.20 	party's cost for carrying health care coverage for the joint child, the other party's child 
71.21 	support and spousal maintenance obligations are subject to an offset under subdivision 5.
71.22 	(b) The public authority, if the public authority provides child support enforcement 
71.23 	services, may remove the offset to a party's child support obligation when:
71.24 	(1) the party's court-ordered private health care coverage for the joint child terminates;
71.25 	(2) the party does not enroll the joint child in other private health care coverage; and
71.26 	(3) a modification motion is not pending.
71.27 	The public authority must provide notice to the parties of the action. If neither party requests 
71.28 	a hearing, the public authority must remove the offset effective the first day of the month 
71.29 	following termination of the joint child's private health care coverage.
71.30 	(c) The public authority, if the public authority provides child support enforcement 
71.31 	services, may resume the offset when the party ordered to provide private health care 
71.32 	coverage for the joint child has resumed the court-ordered private health care coverage or 
72.1 	enrolled the joint child in other private health care coverage. The public authority must 
72.2 	provide notice to the parties of the action. If neither party requests a hearing, the public 
72.3 	authority must resume the offset effective the first day of the month following certification 
72.4 	that private health care coverage is in place for the joint child.
72.5 	(d) A party may contest the public authority's action to remove or resume the offset to 
72.6 	the child support obligation if the party makes a written request for a hearing within 30 days 
72.7 	after receiving written notice. If a party makes a timely request for a hearing, the public 
72.8 	authority must schedule a hearing and send written notice of the hearing to the parties by 
72.9 	mail to the parties' last known addresses at least 14 days before the hearing. The hearing 
72.10 	must be conducted in district court or in the expedited child support process if section 
72.11 	484.702 applies. The district court or child support magistrate must determine whether 
72.12 	removing or resuming the offset is appropriate and, if appropriate, the effective date for the 
72.13 	removal or resumption.
72.14 		Subd. 16a.Suspension or reinstatement of medical support contribution.  (a) If a 
72.15 	party is the parent with primary physical custody, as defined in section 518A.26, subdivision 
72.16 	17, and is ordered to carry private health care coverage for the joint child but fails to carry 
72.17 	the court-ordered private health care coverage, the public authority may suspend the medical 
72.18 	support obligation of the other party if that party has been court-ordered to contribute to the 
72.19 	cost of the private health care coverage carried by the parent with primary physical custody 
72.20 	of the joint child.
72.21 	(b) If the public authority provides child support enforcement services, the public 
72.22 	authority may suspend the other party's medical support contribution toward private health 
72.23 	care coverage when:
72.24 	(1) the party's court-ordered private health care coverage for the joint child terminates;
72.25 	(2) the party does not enroll the joint child in other private health care coverage; and
72.26 	(3) a modification motion is not pending.
72.27 	The public authority must provide notice to the parties of the action. If neither party requests 
72.28 	a hearing, the public authority must remove the medical support contribution effective the 
72.29 	first day of the month following the termination of the joint child's private health care 
72.30 	coverage.
72.31 	(c) If the public authority provides child support enforcement services, the public authority 
72.32 	may reinstate the medical support contribution when the party ordered to provide private 
72.33 	health care coverage for the joint child has resumed the joint child's court-ordered private 
73.1 	health care coverage or has enrolled the joint child in other private health care coverage. 
73.2 	The public authority must provide notice to the parties of the action. If neither party requests 
73.3 	a hearing, the public authority must resume the medical support contribution effective the 
73.4 	first day of the month following certification that the joint child is enrolled in private health 
73.5 	care coverage.
73.6 	(d) A party may contest the public authority's action to suspend or reinstate the medical 
73.7 	support contribution if the party makes a written request for a hearing within 30 days after 
73.8 	receiving written notice. If a party makes a timely request for a hearing, the public authority 
73.9 	must schedule a hearing and send written notice of the hearing to the parties by mail to the 
73.10 	parties' last known addresses at least 14 days before the hearing. The hearing must be 
73.11 	conducted in district court or in the expedited child support process if section 484.702 
73.12 	applies. The district court or child support magistrate must determine whether suspending 
73.13 	or reinstating the medical support contribution is appropriate and, if appropriate, the effective 
73.14 	date of the removal or reinstatement of the medical support contribution.
73.15 		Subd. 17.Collecting unreimbursed or uninsured medical health-related expenses. (a) 
73.16 	This subdivision and subdivision 18 apply when a court order has determined and ordered 
73.17 	the parties' proportionate share and responsibility to contribute to unreimbursed or uninsured 
73.18 	medical health-related expenses.
73.19 	(b) A party requesting reimbursement of unreimbursed or uninsured medical
73.20 	health-related expenses must initiate a request to the other party within two years of the 
73.21 	date that the requesting party incurred the unreimbursed or uninsured medicalhealth-related 
73.22 	expenses. If a court order has been signed ordering the contribution towards toward
73.23 	unreimbursed or uninsured expenses, a two-year limitations provision must be applied to 
73.24 	any requests made on or after January 1, 2007. The provisions of this section apply 
73.25 	retroactively to court orders signed before January 1, 2007. Requests for unreimbursed or 
73.26 	uninsured expenses made on or after January 1, 2007, may include expenses incurred before 
73.27 	January 1, 2007, and on or after January 1, 2005.
73.28 	(c) A requesting party must mail a written notice of intent to collect the unreimbursed 
73.29 	or uninsured medical health-related expenses and a copy of an affidavit of health care 
73.30 	expenses to the other party at the other party's last known address.
73.31 	(d) The written notice must include a statement that the other party has 30 days from 
73.32 	the date the notice was mailed to (1) pay in full; (2) agree to a payment schedule; or (3) file 
73.33 	a motion requesting a hearing to contest the amount due or to set a court-ordered monthly 
73.34 	payment amount. If the public authority provides services, the written notice also must 
74.1 	include a statement that, if the other party does not respond within the 30 days, the requesting 
74.2 	party may submit the amount due to the public authority for collection.
74.3 	(e) The affidavit of health care expenses must itemize and document the joint child's 
74.4 	unreimbursed or uninsured medical health-related expenses and include copies of all bills, 
74.5 	receipts, and insurance company explanations of benefits.
74.6 	(f) If the other party does not respond to the request for reimbursement within 30 days, 
74.7 	the requesting party may commence enforcement against the other party under subdivision 
74.8 	18; file a motion for a court-ordered monthly payment amount under paragraph (i); or notify 
74.9 	the public authority, if the public authority provides services, that the other party has not 
74.10 	responded.
74.11 	(g) The notice to the public authority must include: a copy of the written notice, a copy 
74.12 	of the affidavit of health care expenses, and copies of all bills, receipts, and insurance 
74.13 	company explanations of benefits.
74.14 	(h) If noticed under paragraph (f), the public authority must serve the other party with 
74.15 	a notice of intent to enforce unreimbursed and uninsured medicalhealth-related expenses 
74.16 	and file an affidavit of service by mail with the district court administrator. The notice must 
74.17 	state that the other party has 14 days to (1) pay in full; or (2) file a motion to contest the 
74.18 	amount due or to set a court-ordered monthly payment amount. The notice must also state 
74.19 	that if there is no response within 14 days, the public authority will commence enforcement 
74.20 	of the expenses as arrears under subdivision 18.
74.21 	(i) To contest the amount due or set a court-ordered monthly payment amount, a party 
74.22 	must file a timely motion and schedule a hearing in district court or in the expedited child 
74.23 	support process if section 484.702 applies. The moving party must provide the other party 
74.24 	and the public authority, if the public authority provides services, with written notice at 
74.25 	least 14 days before the hearing by mailing notice of the hearing to the public authority and 
74.26 	to the requesting party at the requesting party's last known address. The moving party must 
74.27 	file the affidavit of health care expenses with the court at least five days before the hearing. 
74.28 	The district court or child support magistrate must determine liability for the expenses and 
74.29 	order that the liable party is subject to enforcement of the expenses as arrears under 
74.30 	subdivision 18 or set a court-ordered monthly payment amount.
74.31 		Subd. 18.Enforcing unreimbursed or uninsured medical health-related expenses 
74.32 	as arrears. (a) Unreimbursed or uninsured medical health-related expenses enforced under 
74.33 	this subdivision are collected as arrears.
75.1 	(b) If the liable party is the parent with primary physical custody as defined in section 
75.2 	518A.26, subdivision 17, the unreimbursed or uninsured medical health-related expenses 
75.3 	must be deducted from any arrears the requesting party owes the liable party. If unreimbursed 
75.4 	or uninsured expenses remain after the deduction, the expenses must be collected as follows:
75.5 	(1) If the requesting party owes a current child support obligation to the liable party, 20 
75.6 	percent of each payment received from the requesting party must be returned to the requesting 
75.7 	party. The total amount returned to the requesting party each month must not exceed 20 
75.8 	percent of the current monthly support obligation.
75.9 	(2) If the requesting party does not owe current child support or arrears, a payment 
75.10 	agreement under section 518A.69 is required. If the liable party fails to enter into or comply 
75.11 	with a payment agreement, the requesting party or the public authority, if the public authority 
75.12 	provides services, may schedule a hearing to set a court-ordered payment. The requesting 
75.13 	party or the public authority must provide the liable party with written notice of the hearing 
75.14 	at least 14 days before the hearing.
75.15 	(c) If the liable party is not the parent with primary physical custody as defined in section 
75.16 	518A.26, subdivision 17, the unreimbursed or uninsured medical health-related expenses 
75.17 	must be deducted from any arrears the requesting party owes the liable party. If unreimbursed 
75.18 	or uninsured expenses remain after the deduction, the expenses must be added and collected 
75.19 	as arrears owed by the liable party.

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

75.21 	Sec. 6. Minnesota Statutes 2022, section 518A.42, subdivision 1, is amended to read:
75.22 		Subdivision 1.Ability to pay. (a) It is a rebuttable presumption that a child support 
75.23 	order should not exceed the obligor's ability to pay. To determine the amount of child support 
75.24 	the obligor has the ability to pay, the court shall follow the procedure set out in this section.
75.25 	(b) The court shall calculate the obligor's income available for support by subtracting a 
75.26 	monthly self-support reserve equal to 120 percent of the federal poverty guidelines for one 
75.27 	person from the obligor's parental income for determining child support (PICS). If benefits 
75.28 	under section 518A.31 are received by the obligee as a representative payee for a joint child 
75.29 	or are received by the child attending school, based on the other parent's eligibility, the court 
75.30 	shall subtract the amount of benefits from the obligor's PICS before subtracting the 
75.31 	self-support reserve. If the obligor's income available for support calculated under this 
75.32 	paragraph is equal to or greater than the obligor's support obligation calculated under section 
75.33 	518A.34, the court shall order child support under section 518A.34.
76.1 	(c) If the obligor's income available for support calculated under paragraph (b) is more 
76.2 	than the minimum support amount under subdivision 2, but less than the guideline amount 
76.3 	under section 518A.34, then the court shall apply a reduction to the child support obligation 
76.4 	in the following order, until the support order is equal to the obligor's income available for 
76.5 	support:
76.6 	(1) medical support obligation;
76.7 	(2) child care support obligation; and
76.8 	(3) basic support obligation.
76.9 	(d) If the obligor's income available for support calculated under paragraph (b) is equal 
76.10 	to or less than the minimum support amount under subdivision 2 or if the obligor's gross 
76.11 	income is less than 120 percent of the federal poverty guidelines for one person, the minimum 
76.12 	support amount under subdivision 2 applies.

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

76.14 	Sec. 7. Minnesota Statutes 2022, section 518A.42, subdivision 3, is amended to read:
76.15 		Subd. 3.Exception. (a) This section does not apply to an obligor who is incarcerated
76.16 	or is a recipient of a general assistance grant, temporary assistance for needy families (TANF) 
76.17 	grant or comparable state-funded Minnesota family investment program (MFIP) benefits.
76.18 	(b) If the court finds the obligor receives no income and completely lacks the ability to 
76.19 	earn income, the minimum basic support amount under this subdivision does not apply.
76.20 	(c) If the obligor's basic support amount is reduced below the minimum basic support 
76.21 	amount due to the application of the parenting expense adjustment, the minimum basic 
76.22 	support amount under this subdivision does not apply and the lesser amount is the guideline 
76.23 	basic support.

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

76.25 	Sec. 8. Minnesota Statutes 2022, section 518A.65, is amended to read:
76.26 	518A.65 DRIVER'S LICENSE SUSPENSION.
76.27 	(a) This paragraph is effective July 1, 2023. Upon motion of an obligee, which has been 
76.28 	properly served on the obligor and upon which there has been an opportunity for hearing, 
76.29 	if a court finds that the obligor has been or may be issued a driver's license by the 
76.30 	commissioner of public safety and the obligor is in arrears in court-ordered child support 
76.31 	or maintenance payments, or both, in an amount equal to or greater than three times the 
77.1 	obligor's total monthly support and maintenance payments and is not in compliance with a 
77.2 	written payment agreement pursuant to section 518A.69 that is approved by the court, a 
77.3 	child support magistrate, or the public authority, the court shall may order the commissioner 
77.4 	of public safety to suspend the obligor's driver's license. The court may consider the 
77.5 	circumstances in paragraph (i) to determine whether driver's license suspension is an 
77.6 	appropriate remedy that is likely to induce the payment of child support. The court may 
77.7 	consider whether driver's license suspension would have a direct harmful effect on the 
77.8 	obligor or joint children that would make driver's license suspension an inappropriate remedy. 
77.9 	This paragraph expires December 31, 2025.
77.10 	(b) This paragraph is effective January 1, 2026. Upon motion of an obligee, which has 
77.11 	been properly served on the obligor and upon which there has been an opportunity for 
77.12 	hearing, if a court finds that the obligor has a valid driver's license issued by the commissioner 
77.13 	of public safety and the obligor is in arrears in court-ordered child support or maintenance 
77.14 	payments, or both, in an amount equal to or greater than three times the obligor's total 
77.15 	monthly support and maintenance payments and is not in compliance with a written payment 
77.16 	agreement pursuant to section 518A.69 that is approved by the court, a child support 
77.17 	magistrate, or the public authority, the court may order the commissioner of public safety 
77.18 	to suspend the obligor's driver's license. The court may consider the circumstances in 
77.19 	paragraph (i) to determine whether driver's license suspension is an appropriate remedy that 
77.20 	is likely to induce the payment of child support. The court may consider whether driver's 
77.21 	license suspension would have a direct harmful effect on the obligor or joint children that 
77.22 	would make driver's license suspension an inappropriate remedy.
77.23 	(c) The court's order must be stayed for 90 days in order to allow the obligor to execute 
77.24 	a written payment agreement pursuant to section 518A.69. The payment agreement must 
77.25 	be approved by either the court or the public authority responsible for child support 
77.26 	enforcement. If the obligor has not executed or is not in compliance with a written payment 
77.27 	agreement pursuant to section 518A.69 after the 90 days expires, the court's order becomes 
77.28 	effective and the commissioner of public safety shall suspend the obligor's driver's license. 
77.29 	The remedy under this section is in addition to any other enforcement remedy available to 
77.30 	the court. An obligee may not bring a motion under this paragraph within 12 months of a 
77.31 	denial of a previous motion under this paragraph.
77.32 	(b) (d) This paragraph is effective July 1, 2023. If a public authority responsible for child 
77.33 	support enforcement determines that the obligor has been or may be issued a driver's license 
77.34 	by the commissioner of public safety and; the obligor is in arrears in court-ordered child 
77.35 	support or maintenance payments or both in an amount equal to or greater than three times 
78.1 	the obligor's total monthly support and maintenance payments and not in compliance with 
78.2 	a written payment agreement pursuant to section 518A.69 that is approved by the court, a 
78.3 	child support magistrate, or the public authority, the public authority shall direct the 
78.4 	commissioner of public safety to suspend the obligor's driver's license unless exercising 
78.5 	administrative discretion under paragraph (i). The remedy under this section is in addition 
78.6 	to any other enforcement remedy available to the public authority. This paragraph expires 
78.7 	December 31, 2025.
78.8 	(e) This paragraph is effective January 1, 2026. If a public authority responsible for child 
78.9 	support enforcement determines that:
78.10 	(1) the obligor has a valid driver's license issued by the commissioner of public safety;
78.11 	(2) the obligor is in arrears in court-ordered child support or maintenance payments or 
78.12 	both in an amount equal to or greater than three times the obligor's total monthly support 
78.13 	and maintenance payments;
78.14 	(3) the obligor is not in compliance with a written payment agreement pursuant to section 
78.15 	518A.69 that is approved by the court, a child support magistrate, or the public authority; 
78.16 	and
78.17 	(4) the obligor's mailing address is known to the public authority;
78.18 	then the public authority shall direct the commissioner of public safety to suspend the 
78.19 	obligor's driver's license unless exercising administrative discretion under paragraph (i). 
78.20 	The remedy under this section is in addition to any other enforcement remedy available to 
78.21 	the public authority.
78.22 	(c) (f) At least 90 days prior to notifying the commissioner of public safety according 
78.23 	to paragraph (b) (d), the public authority must mail a written notice to the obligor at the 
78.24 	obligor's last known address, that it intends to seek suspension of the obligor's driver's 
78.25 	license and that the obligor must request a hearing within 30 days in order to contest the 
78.26 	suspension. If the obligor makes a written request for a hearing within 30 days of the date 
78.27 	of the notice, a court hearing must be held. Notwithstanding any law to the contrary, the 
78.28 	obligor must be served with 14 days' notice in writing specifying the time and place of the 
78.29 	hearing and the allegations against the obligor. The notice must include information that 
78.30 	apprises the obligor of the requirement to develop a written payment agreement that is 
78.31 	approved by a court, a child support magistrate, or the public authority responsible for child 
78.32 	support enforcement regarding child support, maintenance, and any arrearages in order to 
78.33 	avoid license suspension. The notice may be served personally or by mail. If the public 
78.34 	authority does not receive a request for a hearing within 30 days of the date of the notice, 
79.1 	and the obligor does not execute a written payment agreement pursuant to section 518A.69
79.2 	that is approved by the public authority within 90 days of the date of the notice, the public 
79.3 	authority shall direct the commissioner of public safety to suspend the obligor's driver's 
79.4 	license under paragraph (b) (d).
79.5 	(d) (g) At a hearing requested by the obligor under paragraph (c) (f), and on finding that 
79.6 	the obligor is in arrears in court-ordered child support or maintenance payments or both in 
79.7 	an amount equal to or greater than three times the obligor's total monthly support and 
79.8 	maintenance payments, the district court or child support magistrate shall order the 
79.9 	commissioner of public safety to suspend the obligor's driver's license or operating privileges 
79.10 	unless:
79.11 	(1) the court or child support magistrate determines that the obligor has executed and is 
79.12 	in compliance with a written payment agreement pursuant to section 518A.69 that is approved 
79.13 	by the court, a child support magistrate, or the public authority.; or
79.14 	(2) the court, in its discretion, determines that driver's license suspension is unlikely to 
79.15 	induce payment of child support or would have direct harmful effects on the obligor or joint 
79.16 	child that makes driver's license suspension an inappropriate remedy. The court may consider 
79.17 	the circumstances in paragraph (f) in exercising the court's discretion.
79.18 	(e) (h) An obligor whose driver's license or operating privileges are suspended may:
79.19 	(1) provide proof to the public authority responsible for child support enforcement that 
79.20 	the obligor is in compliance with all written payment agreements pursuant to section 518A.69;
79.21 	(2) bring a motion for reinstatement of the driver's license. At the hearing, if the court 
79.22 	or child support magistrate orders reinstatement of the driver's license, the court or child 
79.23 	support magistrate must establish a written payment agreement pursuant to section 518A.69; 
79.24 	or
79.25 	(3) seek a limited license under section 171.30. A limited license issued to an obligor 
79.26 	under section 171.30 expires 90 days after the date it is issued.
79.27 	Within 15 days of the receipt of that proof or a court order, the public authority shall 
79.28 	inform the commissioner of public safety that the obligor's driver's license or operating 
79.29 	privileges should no longer be suspended.
79.30 	(i) Prior to notifying the commissioner of public safety that an obligor's driver's license 
79.31 	should be suspended or after an obligor's driving privileges have been suspended, the public 
79.32 	authority responsible for child support enforcement may use administrative authority to end 
80.1 	the suspension process or inform the commissioner of public safety that the obligor's driving 
80.2 	privileges should no longer be suspended under any of the following circumstances:
80.3 	(1) the full amount of court-ordered payments have been received for at least one month;
80.4 	(2) an income withholding notice has been sent to an employer or payor of funds;
80.5 	(3) payments less than the full court-ordered amount have been received and the 
80.6 	circumstances of the obligor demonstrate the obligor's substantial intent to comply with the 
80.7 	order;
80.8 	(4) the obligor receives public assistance;
80.9 	(5) the case is being reviewed by the public authority for downward modification due 
80.10 	to changes in the obligor's financial circumstances or a party has filed a motion to modify 
80.11 	the child support order;
80.12 	(6) the obligor no longer lives in the state and the child support case is in the process of 
80.13 	interstate enforcement;
80.14 	(7) the obligor is currently incarcerated for one week or more or is receiving in-patient 
80.15 	treatment for physical health, mental health, chemical dependency, or other treatment. This 
80.16 	clause applies for six months after the obligor is no longer incarcerated or receiving in-patient 
80.17 	treatment;
80.18 	(8) the obligor is temporarily or permanently disabled and unable to pay child support;
80.19 	(9) the obligor has presented evidence to the public authority that the obligor needs 
80.20 	driving privileges to maintain or obtain the obligor's employment;
80.21 	(10) the obligor has not had a meaningful opportunity to pay toward arrears; and
80.22 	(11) other circumstances of the obligor indicate that a temporary condition exists for 
80.23 	which suspension of a driver's license for the nonpayment of child support is not appropriate. 
80.24 	When considering whether driver's license suspension is appropriate, the public authority 
80.25 	must assess: (i) whether suspension of the driver's license is likely to induce payment of 
80.26 	child support; and (ii) whether suspension of the driver's license would have direct harmful 
80.27 	effects on the obligor or joint children that make driver's license suspension an inappropriate 
80.28 	remedy.
80.29 	The presence of circumstances in this paragraph does not prevent the public authority from 
80.30 	proceeding with a suspension of a driver's license.
80.31 	(f) (j) In addition to the criteria established under this section for the suspension of an 
80.32 	obligor's driver's license, a court, a child support magistrate, or the public authority may 
81.1 	direct the commissioner of public safety to suspend the license of a party who has failed, 
81.2 	after receiving notice, to comply with a subpoena relating to a paternity or child support 
81.3 	proceeding. Notice to an obligor of intent to suspend must be served by first class mail at 
81.4 	the obligor's last known address. The notice must inform the obligor of the right to request 
81.5 	a hearing. If the obligor makes a written request within ten days of the date of the hearing, 
81.6 	a hearing must be held. At the hearing, the only issues to be considered are mistake of fact 
81.7 	and whether the obligor received the subpoena.
81.8 	(g) (k) The license of an obligor who fails to remain in compliance with an approved 
81.9 	written payment agreement may be suspended. Prior to suspending a license for 
81.10 	noncompliance with an approved written payment agreement, the public authority must 
81.11 	mail to the obligor's last known address a written notice that (1) the public authority intends 
81.12 	to seek suspension of the obligor's driver's license under this paragraph, and (2) the obligor 
81.13 	must request a hearing, within 30 days of the date of the notice, to contest the suspension. 
81.14 	If, within 30 days of the date of the notice, the public authority does not receive a written 
81.15 	request for a hearing and the obligor does not comply with an approved written payment 
81.16 	agreement, the public authority must direct the Department of Public Safety to suspend the 
81.17 	obligor's license under paragraph (b) (d). If the obligor makes a written request for a hearing 
81.18 	within 30 days of the date of the notice, a court hearing must be held. Notwithstanding any 
81.19 	law to the contrary, the obligor must be served with 14 days' notice in writing specifying 
81.20 	the time and place of the hearing and the allegations against the obligor. The notice may be 
81.21 	served personally or by mail at the obligor's last known address. If the obligor appears at 
81.22 	the hearing and the court determines that the obligor has failed to comply with an approved 
81.23 	written payment agreement, the court or public authority shall notify the Department of 
81.24 	Public Safety to suspend the obligor's license under paragraph (b) (d). If the obligor fails 
81.25 	to appear at the hearing, the court or public authority must notify the Department of Public 
81.26 	Safety to suspend the obligor's license under paragraph (b) (d).

81.27 	EFFECTIVE DATE. This section is effective July 1, 2023, unless otherwise specified.

81.28 	Sec. 9. Minnesota Statutes 2022, section 518A.77, is amended to read:
81.29 	518A.77 GUIDELINES REVIEW.
81.30 	(a) No later than 2006 and every four years after that, the Department of Human Services 
81.31 	must conduct a review of the child support guidelines as required under Code of Federal 
81.32 	Regulations, title 45, section 302.56(h).
81.33 	(b) This section expires January 1, 2032.

82.1 	ARTICLE 4
82.2 	ECONOMIC ASSISTANCE

82.3 	Section 1. Minnesota Statutes 2022, section 119B.025, subdivision 4, is amended to read:
82.4 		Subd. 4.Changes in eligibility. (a) The county shall process a change in eligibility 
82.5 	factors according to paragraphs (b) to (g).
82.6 	(b) A family is subject to the reporting requirements in section 256P.07, subdivision 6.
82.7 	(c) If a family reports a change or a change is known to the agency before the family's 
82.8 	regularly scheduled redetermination, the county must act on the change. The commissioner 
82.9 	shall establish standards for verifying a change.
82.10 	(d) A change in income occurs on the day the participant received the first payment 
82.11 	reflecting the change in income.
82.12 	(e) During a family's 12-month eligibility period, if the family's income increases and 
82.13 	remains at or below 85 percent of the state median income, adjusted for family size, there 
82.14 	is no change to the family's eligibility. The county shall not request verification of the 
82.15 	change. The co-payment fee shall not increase during the remaining portion of the family's 
82.16 	12-month eligibility period.
82.17 	(f) During a family's 12-month eligibility period, if the family's income increases and 
82.18 	exceeds 85 percent of the state median income, adjusted for family size, the family is not 
82.19 	eligible for child care assistance. The family must be given 15 calendar days to provide 
82.20 	verification of the change. If the required verification is not returned or confirms ineligibility, 
82.21 	the family's eligibility ends following a subsequent 15-day adverse action notice.
82.22 	(g) Notwithstanding Minnesota Rules, parts 3400.0040, subpart 3, and 3400.0170, 
82.23 	subpart 1, if an applicant or participant reports that employment ended, the agency may 
82.24 	accept a signed statement from the applicant or participant as verification that employment 
82.25 	ended.

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

82.27 	Sec. 2. Minnesota Statutes 2022, section 256D.03, is amended by adding a subdivision to 
82.28 	read:
82.29 		Subd. 2b.Budgeting and reporting. Every county agency shall determine eligibility 
82.30 	and calculate benefit amounts for general assistance according to chapter 256P.

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

83.1 	Sec. 3. Minnesota Statutes 2022, section 256D.63, subdivision 2, is amended to read:
83.2 		Subd. 2.SNAP reporting requirements. The commissioner of human services shall 
83.3 	implement simplified reporting as permitted under the Food and Nutrition Act of 2008, as 
83.4 	amended, and the SNAP regulations in Code of Federal Regulations, title 7, part 273. SNAP 
83.5 	benefit recipient households required to report periodically shall not be required to report 
83.6 	more often than one time every six months. This provision shall not apply to households 
83.7 	receiving food benefits under the Minnesota family investment program waiver.

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

83.9 	Sec. 4. [256D.65] SUPPLEMENTAL NUTRITION ASSISTANCE OUTREACH 
83.10 	PROGRAM.
83.11 		Subdivision 1.SNAP outreach program. The commissioner of human services shall 
83.12 	implement a Supplemental Nutrition Assistance Program (SNAP) outreach program to 
83.13 	inform low-income households about the availability, eligibility requirements, application 
83.14 	procedures, and benefits of SNAP that meets the requirements of the United States 
83.15 	Department of Agriculture.
83.16 		Subd. 2.Duties of commissioner. In addition to any other duties imposed by law, the 
83.17 	commissioner shall:
83.18 	(1) supervise the administration of the SNAP outreach program according to guidance 
83.19 	provided by the United States Department of Agriculture;
83.20 	(2) submit the SNAP outreach plan and budget to the United States Department of 
83.21 	Agriculture;
83.22 	(3) accept any funds provided by the federal government or other sources for SNAP 
83.23 	outreach;
83.24 	(4) administer the request-for-proposals process and establish contracts with grantees 
83.25 	to ensure SNAP outreach services are available to inform low-income households statewide;
83.26 	(5) approve budgets from grantees to ensure that activities are eligible for federal 
83.27 	reimbursement;
83.28 	(6) monitor grantees, review invoices, and reimburse grantees for allowable costs that 
83.29 	are eligible for federal reimbursement;
83.30 	(7) provide technical assistance to grantees to ensure that projects support SNAP outreach 
83.31 	goals and project costs are eligible for federal reimbursement;
84.1 	(8) work in partnership with counties, Tribal Nations, and community organizations to 
84.2 	enhance the reach and services of a statewide SNAP outreach program; and
84.3 	(9) identify and leverage eligible nonfederal funds to earn federal reimbursement for 
84.4 	SNAP outreach.
84.5 		Subd. 3.Program funding. (a) Grantees must submit allowable costs for approved 
84.6 	SNAP outreach activities to the commissioner of human services in order to receive federal 
84.7 	reimbursement.
84.8 	(b) The commissioner of human services shall disburse federal reimbursement funds 
84.9 	for allowable costs for approved SNAP outreach activities to the state agency or grantee 
84.10 	that incurred the costs being reimbursed.

84.11 	Sec. 5. Minnesota Statutes 2022, section 256E.34, subdivision 4, is amended to read:
84.12 		Subd. 4.Use of money. At least 96 percent of the money distributed to Hunger Solutions 
84.13 	under this section must be distributed to food shelf programs to purchase, transport, and 
84.14 	coordinate the distribution of nutritious food to needy individuals and families. The money 
84.15 	distributed to food shelf programs may also be used to purchase personal hygiene products, 
84.16 	including but not limited to diapers and toilet paper. No more than four percent of the money 
84.17 	may be expended for other expenses, such as rent, salaries, and other administrative expenses 
84.18 	of Hunger Solutions.

84.19 	Sec. 6. [256E.341] AMERICAN INDIAN FOOD SOVEREIGNTY FUNDING 
84.20 	PROGRAM.
84.21 		Subdivision 1.Establishment. The American Indian food sovereignty funding program 
84.22 	is established to improve access and equity to food security programs within Tribal and 
84.23 	urban American Indian communities. The program shall assist Tribal Nations and urban 
84.24 	American Indian communities in achieving self-determination and improve collaboration 
84.25 	and partnership building between American Indian communities and the state. The 
84.26 	commissioner of human services shall administer the program and provide outreach, technical 
84.27 	assistance, and program development support to increase food security for American Indians.
84.28 		Subd. 2.Distribution of funding. (a) The commissioner shall provide funding to support 
84.29 	food system changes and provide equitable access to existing and new methods of food 
84.30 	support for American Indian communities. The commissioner shall determine the funding 
84.31 	formula, timing, and form of the application for the program.
84.32 	(b) Eligible recipients of funding under this section include:
85.1 	(1) federally recognized American Indian Tribes or bands in Minnesota as defined in 
85.2 	section 10.65;
85.3 	(2) the American Indian Community Housing Organization;
85.4 	(3) the Division of Indian Work;
85.5 	(4) Department of Indian Work within the Interfaith Action of Greater Saint Paul;
85.6 	(5) the Northwest Indian Community Development Center; and
85.7 	(6) other entities as determined by the commissioner.
85.8 		Subd. 3.Allowable uses of funds. Recipients shall use funds provided under this section 
85.9 	to promote food security for American Indian communities by:
85.10 	(1) planning for sustainable food systems;
85.11 	(2) implementing food security programs, including but not limited to technology to 
85.12 	facilitate no-contact or low-contact food distribution and outreach models;
85.13 	(3) providing culturally relevant training for building food access;
85.14 	(4) purchasing, producing, processing, transporting, storing, and coordinating the 
85.15 	distribution of food, including culturally relevant food; and
85.16 	(5) purchasing seeds, plants, equipment, or materials to preserve, procure, or grow food.
85.17 		Subd. 4.Reporting. (a) Recipients shall report annually on the use of American Indian 
85.18 	food sovereignty funding program money under this section to the commissioner. Each 
85.19 	report shall include the following information:
85.20 	(1) the name and location of the recipient;
85.21 	(2) the amount of funding received;
85.22 	(3) the use of funds; and
85.23 	(4) the number of people served.
85.24 	(b) The commissioner shall determine the form required for the reports and may specify 
85.25 	additional reporting requirements.

85.26 	Sec. 7. Minnesota Statutes 2022, section 256E.35, subdivision 1, is amended to read:
85.27 		Subdivision 1.Establishment. The Minnesota family assets for independence initiative 
85.28 	is established to provide incentives for low-income families to accrue assets for education, 
85.29 	housing, vehicles, emergencies, and economic development purposes.

86.1 	Sec. 8. Minnesota Statutes 2022, section 256E.35, subdivision 2, is amended to read:
86.2 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
86.3 	(b) "Eligible educational institution" means the following:
86.4 	(1) an institution of higher education described in section 101 or 102 of the Higher 
86.5 	Education Act of 1965; or
86.6 	(2) an area vocational education school, as defined in subparagraph (C) or (D) of United 
86.7 	States Code, title 20, chapter 44, section 2302 (3) (the Carl D. Perkins Vocational and 
86.8 	Applied Technology Education Act), which is located within any state, as defined in United 
86.9 	States Code, title 20, chapter 44, section 2302 (30). This clause is applicable only to the 
86.10 	extent section 2302 is in effect on August 1, 2008.
86.11 	(c) "Family asset account" means a savings account opened by a household participating 
86.12 	in the Minnesota family assets for independence initiative.
86.13 	(d) "Fiduciary organization" means:
86.14 	(1) a community action agency that has obtained recognition under section 256E.31;
86.15 	(2) a federal community development credit union serving the seven-county metropolitan 
86.16 	area; or
86.17 	(3) a women-oriented economic development agency serving the seven-county 
86.18 	metropolitan area.;
86.19 	(4) a federally recognized Tribal Nation; or
86.20 	(5) a nonprofit organization as defined under section 501(c)(3) of the Internal Revenue 
86.21 	Code.
86.22 	(e) "Financial coach" means a person who:
86.23 	(1) has completed an intensive financial literacy training workshop that includes 
86.24 	curriculum on budgeting to increase savings, debt reduction and asset building, building a 
86.25 	good credit rating, and consumer protection;
86.26 	(2) participates in ongoing statewide family assets for independence in Minnesota (FAIM) 
86.27 	network training meetings under FAIM program supervision; and
86.28 	(3) provides financial coaching to program participants under subdivision 4a.
86.29 	(f) "Financial institution" means a bank, bank and trust, savings bank, savings association, 
86.30 	or credit union, the deposits of which are insured by the Federal Deposit Insurance 
86.31 	Corporation or the National Credit Union Administration.
87.1 	(g) "Household" means all individuals who share use of a dwelling unit as primary 
87.2 	quarters for living and eating separate from other individuals.
87.3 	(h) "Permissible use" means:
87.4 	(1) postsecondary educational expenses at an eligible educational institution as defined 
87.5 	in paragraph (b), including books, supplies, and equipment required for courses of instruction;
87.6 	(2) acquisition costs of acquiring, constructing, or reconstructing a residence, including 
87.7 	any usual or reasonable settlement, financing, or other closing costs;
87.8 	(3) business capitalization expenses for expenditures on capital, plant, equipment, working 
87.9 	capital, and inventory expenses of a legitimate business pursuant to a business plan approved 
87.10 	by the fiduciary organization;
87.11 	(4) acquisition costs of a principal residence within the meaning of section 1034 of the 
87.12 	Internal Revenue Code of 1986 which do not exceed 100 percent of the average area purchase 
87.13 	price applicable to the residence determined according to section 143(e)(2) and (3) of the 
87.14 	Internal Revenue Code of 1986; and
87.15 	(5) acquisition costs of a personal vehicle only if approved by the fiduciary organization.;
87.16 	(6) contributions to an emergency savings account; and
87.17 	(7) contributions to a Minnesota 529 savings plan.

87.18 	Sec. 9. Minnesota Statutes 2022, section 256E.35, subdivision 3, is amended to read:
87.19 		Subd. 3.Grants awarded. The commissioner shall allocate funds to participating 
87.20 	fiduciary organizations to provide family asset services. Grant awards must be based on a 
87.21 	plan submitted by a statewide organization representing fiduciary organizations. The 
87.22 	statewide organization must ensure that any interested unrepresented fiduciary organization 
87.23 	have input into the development of the plan. The plan must equitably distribute funds to 
87.24 	achieve geographic balance and document the capacity of participating fiduciary 
87.25 	organizations to manage the program. A portion of funds appropriated for this section may 
87.26 	be expended on evaluation of the Minnesota family assets for independence initiative.

87.27 	Sec. 10. Minnesota Statutes 2022, section 256E.35, subdivision 4a, is amended to read:
87.28 		Subd. 4a.Financial coaching. A financial coach shall provide the following to program 
87.29 	participants:
87.30 	(1) financial education relating to budgeting, debt reduction, asset-specific training, 
87.31 	credit building, and financial stability activities;
88.1 	(2) asset-specific training related to buying a home or vehicle, acquiring postsecondary 
88.2 	education, or starting or expanding a small business, saving for emergencies, or saving for 
88.3 	a child's education; and
88.4 	(3) financial stability education and training to improve and sustain financial security.

88.5 	Sec. 11. Minnesota Statutes 2022, section 256E.35, subdivision 6, is amended to read:
88.6 		Subd. 6.Withdrawal; matching; permissible uses. (a) To receive a match, a 
88.7 	participating household must transfer funds withdrawn from a family asset account to its 
88.8 	matching fund custodial account held by the fiscal agent, according to the family asset 
88.9 	agreement. The fiscal agent must determine if the match request is for a permissible use 
88.10 	consistent with the household's family asset agreement.
88.11 	(b) The fiscal agent must ensure the household's custodial account contains the applicable 
88.12 	matching funds to match the balance in the household's account, including interest, on at 
88.13 	least a quarterly basis and at the time of an approved withdrawal. Matches must be a 
88.14 	contribution of $3 from state grant or TANF funds for every $1 of funds withdrawn from 
88.15 	the family asset account not to exceed a $6,000 $12,000 lifetime limit.
88.16 	(c) Notwithstanding paragraph (b), if funds are appropriated for the Federal Assets for 
88.17 	Independence Act of 1998, and a participating fiduciary organization is awarded a grant 
88.18 	under that act, participating households with that fiduciary organization must be provided 
88.19 	matches as follows:
88.20 	(1) from state grant and TANF funds, a matching contribution of $1.50 for every $1 of 
88.21 	funds withdrawn from the family asset account not to exceed a $3,000 $6,000 lifetime limit; 
88.22 	and
88.23 	(2) from nonstate funds, a matching contribution of not less than $1.50 for every $1 of 
88.24 	funds withdrawn from the family asset account not to exceed a $3,000 $6,000 lifetime limit.
88.25 	(d) Upon receipt of transferred custodial account funds, the fiscal agent must make a 
88.26 	direct payment to the vendor of the goods or services for the permissible use.

88.27 	Sec. 12. Minnesota Statutes 2022, section 256E.35, subdivision 7, is amended to read:
88.28 		Subd. 7.Program reporting. The fiscal agent on behalf of each fiduciary organization 
88.29 	participating in a family assets for independence initiative must report quarterly to the 
88.30 	commissioner of human services identifying the participants with accounts,; the number of 
88.31 	accounts,; the amount of savings and matches for each participant's account,; the uses of 
88.32 	the account, and; the number of businesses, homes, vehicles, and educational services paid 
89.1 	for with money from the account,; and the amount of contributions to Minnesota 529 savings 
89.2 	plans and emergency savings accounts, as well as other information that may be required 
89.3 	for the commissioner to administer the program and meet federal TANF reporting 
89.4 	requirements.

89.5 	Sec. 13. Minnesota Statutes 2022, section 256I.03, subdivision 13, is amended to read:
89.6 		Subd. 13.Prospective budgeting. "Prospective budgeting" means estimating the amount 
89.7 	of monthly income a person will have in the payment month has the meaning given in 
89.8 	section 256P.01, subdivision 9.

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

89.10 	Sec. 14. Minnesota Statutes 2022, section 256I.06, subdivision 6, is amended to read:
89.11 		Subd. 6.Reports. Recipients must report changes in circumstances according to section 
89.12 	256P.07that affect eligibility or housing support payment amounts, other than changes in 
89.13 	earned income, within ten days of the change. Recipients with countable earned income 
89.14 	must complete a household report form at least once every six months according to section 
89.15 	256P.10. If the report form is not received before the end of the month in which it is due, 
89.16 	the county agency must terminate eligibility for housing support payments. The termination 
89.17 	shall be effective on the first day of the month following the month in which the report was 
89.18 	due. If a complete report is received within the month eligibility was terminated, the 
89.19 	individual is considered to have continued an application for housing support payment 
89.20 	effective the first day of the month the eligibility was terminated.

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

89.22 	Sec. 15. Minnesota Statutes 2022, section 256I.06, is amended by adding a subdivision 
89.23 	to read:
89.24 		Subd. 6a.When to terminate assistance. An agency must terminate benefits when the 
89.25 	assistance unit fails to submit the household report form before the end of the month in 
89.26 	which it is due. The termination shall be effective on the first day of the month following 
89.27 	the month in which the report was due. If the assistance unit submits the household report 
89.28 	form within 30 days of the termination of benefits and remains eligible, benefits must be 
89.29 	reinstated and made available retroactively for the full benefit month.

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

90.1 	Sec. 16. Minnesota Statutes 2022, section 256I.06, subdivision 8, is amended to read:
90.2 		Subd. 8.Amount of housing support payment. (a) The amount of a room and board 
90.3 	payment to be made on behalf of an eligible individual is determined by subtracting the 
90.4 	individual's countable income under section 256I.04, subdivision 1, for a whole calendar 
90.5 	month from the room and board rate for that same month. The housing support payment is 
90.6 	determined by multiplying the housing support rate times the period of time the individual 
90.7 	was a resident or temporarily absent under section 256I.05, subdivision 2a.
90.8 	(b) For an individual with earned income under paragraph (a), prospective budgeting 
90.9 	according to section 256P.09 must be used to determine the amount of the individual's 
90.10 	payment for the following six-month period. An increase in income shall not affect an 
90.11 	individual's eligibility or payment amount until the month following the reporting month. 
90.12 	A decrease in income shall be effective the first day of the month after the month in which 
90.13 	the decrease is reported.
90.14 	(c) For an individual who receives housing support payments under section 256I.04, 
90.15 	subdivision 1, paragraph (c), the amount of the housing support payment is determined by 
90.16 	multiplying the housing support rate times the period of time the individual was a resident.

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

90.18 	Sec. 17. Minnesota Statutes 2022, section 256J.08, subdivision 71, is amended to read:
90.19 		Subd. 71.Prospective budgeting. "Prospective budgeting" means a method of 
90.20 	determining the amount of the assistance payment in which the budget month and payment 
90.21 	month are the same has the meaning given in section 256P.01, subdivision 9.

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

90.23 	Sec. 18. Minnesota Statutes 2022, section 256J.08, subdivision 79, is amended to read:
90.24 		Subd. 79.Recurring income. "Recurring income" means a form of income which is:
90.25 	(1) received periodically, and may be received irregularly when receipt can be anticipated 
90.26 	even though the date of receipt cannot be predicted; and
90.27 	(2) from the same source or of the same type that is received and budgeted in a 
90.28 	prospective month and is received in one or both of the first two retrospective months.

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

91.1 	Sec. 19. Minnesota Statutes 2022, section 256J.21, subdivision 3, is amended to read:
91.2 		Subd. 3.Initial income test.  (a) The agency shall determine initial eligibility by 
91.3 	considering all earned and unearned income as defined in section 256P.06. To be eligible 
91.4 	for MFIP, the assistance unit's countable income minus the earned income disregards in 
91.5 	paragraph (a) and section 256P.03 must be below the family wage level according to section 
91.6 	256J.24, subdivision 7, for that size assistance unit.
91.7 	(a) (b) The initial eligibility determination must disregard the following items:
91.8 	(1) the earned income disregard as determined in section 256P.03;
91.9 	(2) dependent care costs must be deducted from gross earned income for the actual 
91.10 	amount paid for dependent care up to a maximum of $200 per month for each child less 
91.11 	than two years of age, and $175 per month for each child two years of age and older;
91.12 	(3) all payments made according to a court order for spousal support or the support of 
91.13 	children not living in the assistance unit's household shall be disregarded from the income 
91.14 	of the person with the legal obligation to pay support; and
91.15 	(4) an allocation for the unmet need of an ineligible spouse or an ineligible child under 
91.16 	the age of 21 for whom the caregiver is financially responsible and who lives with the 
91.17 	caregiver according to section 256J.36.
91.18 	(b) After initial eligibility is established, (c) The income test is for a six-month period.
91.19 	The assistance payment calculation is based on the monthly income test prospective budgeting 
91.20 	according to section 256P.09.

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

91.22 	Sec. 20. Minnesota Statutes 2022, section 256J.21, subdivision 4, is amended to read:
91.23 		Subd. 4.Monthly Income test and determination of assistance payment. The county 
91.24 	agency shall determine ongoing eligibility and the assistance payment amount according 
91.25 	to the monthly income test. To be eligible for MFIP, the result of the computations in 
91.26 	paragraphs (a) to (e) applied to prospective budgeting must be at least $1.
91.27 	(a) Apply an income disregard as defined in section 256P.03, to gross earnings and 
91.28 	subtract this amount from the family wage level. If the difference is equal to or greater than 
91.29 	the MFIP transitional standard, the assistance payment is equal to the MFIP transitional 
91.30 	standard. If the difference is less than the MFIP transitional standard, the assistance payment 
91.31 	is equal to the difference. The earned income disregard in this paragraph must be deducted 
91.32 	every month there is earned income.
92.1 	(b) All payments made according to a court order for spousal support or the support of 
92.2 	children not living in the assistance unit's household must be disregarded from the income 
92.3 	of the person with the legal obligation to pay support.
92.4 	(c) An allocation for the unmet need of an ineligible spouse or an ineligible child under 
92.5 	the age of 21 for whom the caregiver is financially responsible and who lives with the 
92.6 	caregiver must be made according to section 256J.36.
92.7 	(d) Subtract unearned income dollar for dollar from the MFIP transitional standard to 
92.8 	determine the assistance payment amount.
92.9 	(e) When income is both earned and unearned, the amount of the assistance payment 
92.10 	must be determined by first treating gross earned income as specified in paragraph (a). After 
92.11 	determining the amount of the assistance payment under paragraph (a), unearned income 
92.12 	must be subtracted from that amount dollar for dollar to determine the assistance payment 
92.13 	amount.
92.14 	(f) When the monthly income is greater than the MFIP transitional standard after 
92.15 	deductions and the income will only exceed the standard for one month, the county agency 
92.16 	must suspend the assistance payment for the payment month.

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

92.18 	Sec. 21. Minnesota Statutes 2022, section 256J.33, subdivision 1, is amended to read:
92.19 		Subdivision 1.Determination of eligibility. (a) A county agency must determine MFIP 
92.20 	eligibility prospectively for a payment month based on retrospectively assessing income 
92.21 	and the county agency's best estimate of the circumstances that will exist in the payment 
92.22 	month.
92.23 	(b) Except as described in section 256J.34, subdivision 1, when prospective eligibility 
92.24 	exists, A county agency must calculate the amount of the assistance payment using 
92.25 	retrospective prospective budgeting. To determine MFIP eligibility and the assistance 
92.26 	payment amount, a county agency must apply countable income, described in sections 
92.27 	256P.06 and 256J.37, subdivisions 3 to 10 9, received by members of an assistance unit or 
92.28 	by other persons whose income is counted for the assistance unit, described under sections 
92.29 	256J.37, subdivisions 1 to 2, and 256P.06, subdivision 1.
92.30 	(c) This income must be applied to the MFIP standard of need or family wage level 
92.31 	subject to this section and sections 256J.34 to 256J.36. Countable income as described in 
92.32 	section 256P.06, subdivision 3, received in a calendar month must be applied to the needs 
92.33 	of an assistance unit.
93.1 	(d) An assistance unit is not eligible when the countable income equals or exceeds the 
93.2 	MFIP standard of need or the family wage level for the assistance unit.

93.3 	EFFECTIVE DATE. This section is effective March 1, 2025, except that the amendment 
93.4 	to paragraph (b) striking "10" and inserting "9" is effective July 1, 2024.

93.5 	Sec. 22. Minnesota Statutes 2022, section 256J.33, subdivision 2, is amended to read:
93.6 		Subd. 2.Prospective eligibility. An agency must determine whether the eligibility 
93.7 	requirements that pertain to an assistance unit, including those in sections 256J.11 to 256J.15
93.8 	and 256P.02, will be met prospectively for the payment month period. Except for the 
93.9 	provisions in section 256J.34, subdivision 1, The income test will be applied retrospectively
93.10 	prospectively.

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

93.12 	Sec. 23. Minnesota Statutes 2022, section 256J.37, subdivision 3, is amended to read:
93.13 		Subd. 3.Earned income of wage, salary, and contractual employees. The agency 
93.14 	must include gross earned income less any disregards in the initial and monthly income 
93.15 	test. Gross earned income received by persons employed on a contractual basis must be 
93.16 	prorated over the period covered by the contract even when payments are received over a 
93.17 	lesser period of time.

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

93.19 	Sec. 24. Minnesota Statutes 2022, section 256J.37, subdivision 3a, is amended to read:
93.20 		Subd. 3a.Rental subsidies; unearned income. (a) Effective July 1, 2003, the agency 
93.21 	shall count $50 of the value of public and assisted rental subsidies provided through the 
93.22 	Department of Housing and Urban Development (HUD) as unearned income to the cash 
93.23 	portion of the MFIP grant. The full amount of the subsidy must be counted as unearned 
93.24 	income when the subsidy is less than $50. The income from this subsidy shall be budgeted 
93.25 	according to section 256J.34 256P.09.
93.26 	(b) The provisions of this subdivision shall not apply to an MFIP assistance unit which 
93.27 	includes a participant who is:
93.28 	(1) age 60 or older;
93.29 	(2) a caregiver who is suffering from an illness, injury, or incapacity that has been 
93.30 	certified by a qualified professional when the illness, injury, or incapacity is expected to 
94.1 	continue for more than 30 days and severely limits the person's ability to obtain or maintain 
94.2 	suitable employment; or
94.3 	(3) a caregiver whose presence in the home is required due to the illness or incapacity 
94.4 	of another member in the assistance unit, a relative in the household, or a foster child in the 
94.5 	household when the illness or incapacity and the need for the participant's presence in the 
94.6 	home has been certified by a qualified professional and is expected to continue for more 
94.7 	than 30 days.
94.8 	(c) The provisions of this subdivision shall not apply to an MFIP assistance unit where 
94.9 	the parental caregiver is an SSI participant.

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

94.11 	Sec. 25. Minnesota Statutes 2022, section 256J.95, subdivision 19, is amended to read:
94.12 		Subd. 19.DWP overpayments and underpayments. DWP benefits are subject to 
94.13 	overpayments and underpayments. Anytime an overpayment or an underpayment is 
94.14 	determined for DWP, the correction shall be calculated using prospective budgeting. 
94.15 	Corrections shall be determined based on the policy in section 256J.34, subdivision 1, 
94.16 	paragraphs (a), (b), and (c) 256P.09, subdivisions 1 to 4. ATM errors must be recovered as 
94.17 	specified in section 256P.08, subdivision 7. Cross program recoupment of overpayments 
94.18 	cannot be assigned to or from DWP.

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

94.20 	Sec. 26. Minnesota Statutes 2022, section 256P.01, is amended by adding a subdivision 
94.21 	to read:
94.22 		Subd. 9.Prospective budgeting. "Prospective budgeting" means estimating the amount 
94.23 	of monthly income that an assistance unit will have in the payment month.

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

94.25 	Sec. 27. Minnesota Statutes 2022, section 256P.02, subdivision 2, is amended to read:
94.26 		Subd. 2.Personal property limitations. The equity value of an assistance unit's personal 
94.27 	property listed in clauses (1) to (5) must not exceed $10,000 for applicants and participants. 
94.28 	For purposes of this subdivision, personal property is limited to:
94.29 	(1) cash;
94.30 	(2) bank accounts not excluded under subdivision 4;
95.1 	(3) liquid stocks and bonds that can be readily accessed without a financial penalty;
95.2 	(4) vehicles not excluded under subdivision 3; and
95.3 	(5) the full value of business accounts used to pay expenses not related to the business.

95.4 	Sec. 28. Minnesota Statutes 2022, section 256P.02, is amended by adding a subdivision 
95.5 	to read:
95.6 		Subd. 4.Account exception. Family asset accounts under section 256E.35 and individual 
95.7 	development accounts authorized under the Assets for Independence Act, Title IV of the 
95.8 	Community Opportunities, Accountability, and Training and Educational Services Human 
95.9 	Services Reauthorization Act of 1998, Public Law 105-285, shall be excluded when 
95.10 	determining the equity value of personal property.

95.11 	Sec. 29. Minnesota Statutes 2022, section 256P.04, subdivision 4, is amended to read:
95.12 		Subd. 4.Factors to be verified. (a) The agency shall verify the following at application:
95.13 	(1) identity of adults;
95.14 	(2) age, if necessary to determine eligibility;
95.15 	(3) immigration status;
95.16 	(4) income;
95.17 	(5) spousal support and child support payments made to persons outside the household;
95.18 	(6) vehicles;
95.19 	(7) checking and savings accounts, including but not limited to any business accounts 
95.20 	used to pay expenses not related to the business;
95.21 	(8) inconsistent information, if related to eligibility;
95.22 	(9) residence; and
95.23 	(10) Social Security number; and.
95.24 	(11) use of nonrecurring income under section 256P.06, subdivision 3, clause (2), item 
95.25 	(ix), for the intended purpose for which it was given and received.
95.26 	(b) Applicants who are qualified noncitizens and victims of domestic violence as defined 
95.27 	under section 256J.08, subdivision 73, clauses (8) and (9), are not required to verify the 
95.28 	information in paragraph (a), clause (10). When a Social Security number is not provided 
95.29 	to the agency for verification, this requirement is satisfied when each member of the 
96.1 	assistance unit cooperates with the procedures for verification of Social Security numbers, 
96.2 	issuance of duplicate cards, and issuance of new numbers which have been established 
96.3 	jointly between the Social Security Administration and the commissioner.

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

96.5 	Sec. 30. Minnesota Statutes 2022, section 256P.04, subdivision 8, is amended to read:
96.6 		Subd. 8.Recertification. The agency shall recertify eligibility annually. During 
96.7 	recertification and reporting under section 256P.10, the agency shall verify the following:
96.8 	(1) income, unless excluded, including self-employment earnings;
96.9 	(2) assets when the value is within $200 of the asset limit; and
96.10 	(3) inconsistent information, if related to eligibility.

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

96.12 	Sec. 31. Minnesota Statutes 2022, section 256P.06, subdivision 3, is amended to read:
96.13 		Subd. 3.Income inclusions. The following must be included in determining the income 
96.14 	of an assistance unit:
96.15 	(1) earned income; and
96.16 	(2) unearned income, which includes:
96.17 	(i) interest and dividends from investments and savings;
96.18 	(ii) capital gains as defined by the Internal Revenue Service from any sale of real property;
96.19 	(iii) proceeds from rent and contract for deed payments in excess of the principal and 
96.20 	interest portion owed on property;
96.21 	(iv) income from trusts, excluding special needs and supplemental needs trusts;
96.22 	(v) interest income from loans made by the participant or household;
96.23 	(vi) cash prizes and winnings;
96.24 	(vii) unemployment insurance income that is received by an adult member of the 
96.25 	assistance unit unless the individual receiving unemployment insurance income is:
96.26 	(A) 18 years of age and enrolled in a secondary school; or
96.27 	(B) 18 or 19 years of age, a caregiver, and is enrolled in school at least half-time;
96.28 	(viii) retirement, survivors, and disability insurance payments;
97.1 	(ix) nonrecurring income over $60 per quarter unless the nonrecurring income is: (A) 
97.2 	from tax refunds, tax rebates, or tax credits; (B) a reimbursement, rebate, award, grant, or 
97.3 	refund of personal or real property or costs or losses incurred when these payments are 
97.4 	made by: a public agency; a court; solicitations through public appeal; a federal, state, or 
97.5 	local unit of government; or a disaster assistance organization; (C) provided as an in-kind 
97.6 	benefit; or (D) earmarked and used for the purpose for which it was intended, subject to 
97.7 	verification requirements under section 256P.04;
97.8 	(x) (ix) retirement benefits;
97.9 	(xi) (x) cash assistance benefits, as defined by each program in chapters 119B, 256D, 
97.10 	256I, and 256J;
97.11 	(xii) (xi) Tribal per capita payments unless excluded by federal and state law;
97.12 	(xiii) (xii) income from members of the United States armed forces unless excluded 
97.13 	from income taxes according to federal or state law;
97.14 	(xiv) (xiii) all child support payments for programs under chapters 119B, 256D, and 
97.15 	256I;
97.16 	(xv) (xiv) the amount of child support received that exceeds $100 for assistance units 
97.17 	with one child and $200 for assistance units with two or more children for programs under 
97.18 	chapter 256J;
97.19 	(xvi) (xv) spousal support; and
97.20 	(xvii) (xvi) workers' compensation.

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

97.22 	Sec. 32. Minnesota Statutes 2022, section 256P.07, subdivision 1, is amended to read:
97.23 		Subdivision 1.Exempted programs. Participants who receive Supplemental Security 
97.24 	Income and qualify for Minnesota supplemental aid under chapter 256D and or for housing 
97.25 	support under chapter 256I on the basis of eligibility for Supplemental Security Income are 
97.26 	exempt from this section reporting income under this chapter.

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

98.1 	Sec. 33. Minnesota Statutes 2022, section 256P.07, is amended by adding a subdivision 
98.2 	to read:
98.3 		Subd. 1a.Child care assistance programs. Participants who qualify for child care 
98.4 	assistance programs under chapter 119B are exempt from this section except the reporting 
98.5 	requirements in subdivision 6.

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

98.7 	Sec. 34. Minnesota Statutes 2022, section 256P.07, subdivision 2, is amended to read:
98.8 		Subd. 2.Reporting requirements. An applicant or participant must provide information 
98.9 	on an application and any subsequent reporting forms about the assistance unit's 
98.10 	circumstances that affect eligibility or benefits. An applicant or assistance unit must report 
98.11 	changes that affect eligibility or benefits as identified in subdivision subdivisions 3, 4, 5, 
98.12 	7, 8, and 9 during the application period or by the tenth of the month following the month 
98.13 	the assistance unit's circumstances changed. When information is not accurately reported, 
98.14 	both an overpayment and a referral for a fraud investigation may result. When information 
98.15 	or documentation is not provided, the receipt of any benefit may be delayed or denied, 
98.16 	depending on the type of information required and its effect on eligibility.

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

98.18 	Sec. 35. Minnesota Statutes 2022, section 256P.07, subdivision 3, is amended to read:
98.19 		Subd. 3.Changes that must be reported. An assistance unit must report the changes 
98.20 	or anticipated changes specified in clauses (1) to (12) within ten days of the date they occur, 
98.21 	at the time of recertification of eligibility under section 256P.04, subdivisions 8 and 9, or 
98.22 	within eight calendar days of a reporting period, whichever occurs first. An assistance unit 
98.23 	must report other changes at the time of recertification of eligibility under section 256P.04, 
98.24 	subdivisions 8 and 9, or at the end of a reporting period, as applicable. When an agency 
98.25 	could have reduced or terminated assistance for one or more payment months if a delay in 
98.26 	reporting a change specified under clauses (1) to (12) had not occurred, the agency must 
98.27 	determine whether a timely notice could have been issued on the day that the change 
98.28 	occurred. When a timely notice could have been issued, each month's overpayment 
98.29 	subsequent to that notice must be considered a client error overpayment under section 
98.30 	119B.11, subdivision 2a, or 256P.08. Changes in circumstances that must be reported within 
98.31 	ten days must also be reported for the reporting period in which those changes occurred. 
98.32 	Within ten days, an assistance unit must report:
99.1 	(1) a change in earned income of $100 per month or greater with the exception of a 
99.2 	program under chapter 119B;
99.3 	(2) a change in unearned income of $50 per month or greater with the exception of a 
99.4 	program under chapter 119B;
99.5 	(3) a change in employment status and hours with the exception of a program under 
99.6 	chapter 119B;
99.7 	(4) a change in address or residence;
99.8 	(5) a change in household composition with the exception of programs under chapter 
99.9 	256I;
99.10 	(6) a receipt of a lump-sum payment with the exception of a program under chapter 
99.11 	119B;
99.12 	(7) an increase in assets if over $9,000 with the exception of programs under chapter 
99.13 	119B;
99.14 	(8) a change in citizenship or immigration status;
99.15 	(9) a change in family status with the exception of programs under chapter 256I;
99.16 	(10) a change in disability status of a unit member, with the exception of programs under 
99.17 	chapter 119B;
99.18 	(11) a new rent subsidy or a change in rent subsidy with the exception of a program 
99.19 	under chapter 119B; and
99.20 	(12) a sale, purchase, or transfer of real property with the exception of a program under 
99.21 	chapter 119B.
99.22 	(a) An assistance unit must report changes or anticipated changes as described in this 
99.23 	section.
99.24 	(b) An assistance unit must report:
99.25 	(1) a change in eligibility for Supplemental Security Income, Retirement Survivors 
99.26 	Disability Insurance, or another federal income support;
99.27 	(2) a change in address or residence;
99.28 	(3) a change in household composition with the exception of programs under chapter 
99.29 	256I;
100.1 	(4) cash prizes and winnings according to guidance provided for the Supplemental 
100.2 	Nutrition Assistance Program;
100.3 	(5) a change in citizenship or immigration status;
100.4 	(6) a change in family status with the exception of programs under chapter 256I; and
100.5 	(7) a change that makes the value of the unit's assets at or above the asset limit.
100.6 	(c) When an agency could have reduced or terminated assistance for one or more payment 
100.7 	months if a delay in reporting a change specified under paragraph (b) had not occurred, the 
100.8 	agency must determine whether the agency could have issued a timely notice on the day 
100.9 	that the change occurred. When a timely notice could have been issued, each month's 
100.10 	overpayment subsequent to the notice must be considered a client error overpayment under 
100.11 	section 256P.08.

100.12 	EFFECTIVE DATE. This section is effective March 1, 2025, except that the amendment 
100.13 	striking clause (6) is effective July 1, 2024.

100.14 	Sec. 36. Minnesota Statutes 2022, section 256P.07, subdivision 4, is amended to read:
100.15 		Subd. 4.MFIP-specific reporting. In addition to subdivision 3, an assistance unit under 
100.16 	chapter 256J, within ten days of the change, must report:
100.17 	(1) a pregnancy not resulting in birth when there are no other minor children; and
100.18 	(2) a change in school attendance of a parent under 20 years of age or of an employed 
100.19 	child.; and
100.20 	(3) an individual in the household who is 18 or 19 years of age attending high school 
100.21 	who graduates or drops out of school.

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

100.23 	Sec. 37. Minnesota Statutes 2022, section 256P.07, subdivision 6, is amended to read:
100.24 		Subd. 6.Child care assistance programs-specific reporting. (a) In addition to 
100.25 	subdivision 3, An assistance unit under chapter 119B, within ten days of the change, must 
100.26 	report:
100.27 	(1) a change in a parentally responsible individual's custody schedule for any child 
100.28 	receiving child care assistance program benefits;
100.29 	(2) a permanent end in a parentally responsible individual's authorized activity; and
101.1 	(3) if the unit's family's annual included income exceeds 85 percent of the state median 
101.2 	income, adjusted for family size.;
101.3 	(4) a change in address or residence;
101.4 	(5) a change in household composition;
101.5 	(6) a change in citizenship or immigration status; and
101.6 	(7) a change in family status.
101.7 	(b) An assistance unit subject to section 119B.095, subdivision 1, paragraph (b), must 
101.8 	report a change in the unit's authorized activity status.
101.9 	(c) An assistance unit must notify the county when the unit wants to reduce the number 
101.10 	of authorized hours for children in the unit.

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

101.12 	Sec. 38. Minnesota Statutes 2022, section 256P.07, subdivision 7, is amended to read:
101.13 		Subd. 7.Minnesota supplemental aid-specific reporting. (a) In addition to subdivision 
101.14 	3, an assistance unit participating in the Minnesota supplemental aid program under section 
101.15 	256D.44, subdivision 5, paragraph (g), within ten days of the change, chapter 256D and not 
101.16 	receiving Supplemental Security Income must report shelter expenses.:
101.17 	(1) a change in unearned income of $50 per month or greater; and
101.18 	(2) a change in earned income of $100 per month or greater.
101.19 	(b) An assistance unit receiving housing assistance under section 256D.44, subdivision 
101.20 	5, paragraph (g), including assistance units that also receive Supplemental Security Income, 
101.21 	must report:
101.22 	(1) a change in shelter expenses; and
101.23 	(2) a new rent subsidy or a change in rent subsidy.

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

101.25 	Sec. 39. Minnesota Statutes 2022, section 256P.07, is amended by adding a subdivision 
101.26 	to read:
101.27 		Subd. 8.Housing support-specific reporting. (a) In addition to subdivision 3, an 
101.28 	assistance unit participating in the housing support program under chapter 256I and not 
101.29 	receiving Supplemental Security Income must report:
102.1 	(1) a change in unearned income of $50 per month or greater; and
102.2 	(2) a change in earned income of $100 per month or greater, unless the assistance unit 
102.3 	is already subject to six-month reporting requirements in section 256P.10.
102.4 	(b) Notwithstanding the exemptions in subdivisions 1 and 3, an assistance unit receiving 
102.5 	housing support under chapter 256I, including an assistance unit that receives Supplemental 
102.6 	Security Income, must report:
102.7 	(1) a new rent subsidy or a change in rent subsidy;
102.8 	(2) a change in the disability status of a unit member; and
102.9 	(3) a change in household composition if the assistance unit is a participant in housing 
102.10 	support under section 256I.04, subdivision 3, paragraph (a), clause (3).

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

102.12 	Sec. 40. Minnesota Statutes 2022, section 256P.07, is amended by adding a subdivision 
102.13 	to read:
102.14 		Subd. 9.General assistance-specific reporting. In addition to subdivision 3, an 
102.15 	assistance unit participating in the general assistance program under chapter 256D must 
102.16 	report:
102.17 	(1) a change in unearned income of $50 per month or greater;
102.18 	(2) a change in earned income of $100 per month or greater, unless the assistance unit 
102.19 	is already subject to six-month reporting requirements in section 256P.10; and
102.20 	(3) changes in any condition that would result in the loss of basis for eligibility in section 
102.21 	256D.05, subdivision 1, paragraph (a).

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

102.23 	Sec. 41. [256P.09] PROSPECTIVE BUDGETING OF BENEFITS.
102.24 		Subdivision 1.Exempted programs. Assistance units that qualify for child care 
102.25 	assistance programs under chapter 119B and assistance units that receive housing support 
102.26 	under chapter 256I are not subject to reporting under section 256P.10, and assistance units 
102.27 	that qualify for Minnesota supplemental aid under chapter 256D are exempt from this 
102.28 	section.
102.29 		Subd. 2.Prospective budgeting of benefits. An agency subject to this chapter must use 
102.30 	prospective budgeting to calculate the assistance payment amount.
103.1 		Subd. 3.Initial income. For the purpose of determining an assistance unit's level of 
103.2 	benefits, an agency must take into account the income already received by the assistance 
103.3 	unit during or anticipated to be received during the application period. Income anticipated 
103.4 	to be received only in the initial month of eligibility must only be counted in the initial 
103.5 	month.
103.6 		Subd. 4.Income determination. An agency must use prospective budgeting to determine 
103.7 	the amount of the assistance unit's benefit for the eligibility period based on the best 
103.8 	information available at the time of approval. An agency shall only count anticipated income 
103.9 	when the participant and the agency are reasonably certain of the amount of the payment 
103.10 	and the month in which the payment will be received. If the exact amount of the income is 
103.11 	not known, the agency shall consider only the amounts that can be anticipated as income.
103.12 		Subd. 5.Income changes. An increase in income shall not affect an assistance unit's 
103.13 	eligibility or benefit amount until the next review unless otherwise required to be reported 
103.14 	in section 256P.07. A decrease in income shall be effective on the date that the change 
103.15 	occurs if the change is reported by the tenth of the month following the month when the 
103.16 	change occurred. If the assistance unit does not report the change in income by the tenth of 
103.17 	the month following the month when the change occurred, the change in income shall be 
103.18 	effective on the date the change was reported.

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

103.20 	Sec. 42. [256P.10] SIX-MONTH REPORTING.
103.21 		Subdivision 1.Exempted programs. Assistance units that qualify for child care 
103.22 	assistance programs under chapter 119B, assistance units that qualify for Minnesota 
103.23 	supplemental aid under chapter 256D, and assistance units that qualify for housing support 
103.24 	under chapter 256I and also receive Supplemental Security Income are exempt from this 
103.25 	section.
103.26 		Subd. 2.Reporting. (a) Every six months, an assistance unit that qualifies for the 
103.27 	Minnesota family investment program under chapter 256J, an assistance unit that qualifies 
103.28 	for general assistance under chapter 256D with an earned income of $100 per month or 
103.29 	greater, or an assistance unit that qualifies for housing support under chapter 256I with an 
103.30 	earned income of $100 per month or greater is subject to six-month reviews. The initial 
103.31 	reporting period may be shorter than six months in order to align with other programs' 
103.32 	reporting periods.
104.1 	(b) An assistance unit that qualifies for the Minnesota family investment program or an 
104.2 	assistance unit that qualifies for general assistance with an earned income of $100 per month 
104.3 	or greater must complete household report forms as required by the commissioner for 
104.4 	redetermination of benefits.
104.5 	(c) An assistance unit that qualifies for housing support with an earned income of $100 
104.6 	per month or greater must complete household report forms as prescribed by the 
104.7 	commissioner to provide information about earned income.
104.8 	(d) An assistance unit that qualifies for housing support and also receives assistance 
104.9 	through the Minnesota family investment program shall be subject to requirements of this 
104.10 	section for purposes of the Minnesota family investment program but not for housing support.
104.11 	(e) An assistance unit covered by this section must submit a household report form in 
104.12 	compliance with the provisions in section 256P.04, subdivision 11.
104.13 	(f) An assistance unit covered by this section may choose to report changes under this 
104.14 	section at any time.
104.15 		Subd. 3.When to terminate assistance. (a) An agency must terminate benefits when 
104.16 	the assistance unit fails to submit the household report form before the end of the six-month 
104.17 	review period. If the assistance unit submits the household report form within 30 days of 
104.18 	the termination of benefits and remains eligible, benefits must be reinstated and made 
104.19 	available retroactively for the full benefit month.
104.20 	(b) When an assistance unit is determined to be ineligible for assistance according to 
104.21 	this section and chapter 256D, 256I, or 256J, the agency must terminate assistance.

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

104.23 	Sec. 43. APPROPRIATION; EMERGENCY FOOD DISTRIBUTION FACILITIES.
 104.24 	$19,000,000 in fiscal year 2024 is appropriated from the general fund to the commissioner 
104.25 	of human services for improving and expanding the infrastructure of food shelf facilities 
104.26 	across the state, including adding freezer or cooler space and dry storage space, improving 
104.27 	the safety and sanitation of existing food shelves, and addressing deferred maintenance or 
104.28 	other facility needs of existing food shelves. Grant money shall be made available to nonprofit 
104.29 	organizations, federally recognized Tribes, and local units of government. This is a onetime 
104.30 	appropriation and is available until June 30, 2027.

105.1 	Sec. 44. REPEALER.
 105.2 	(a) Minnesota Statutes 2022, sections 256.9864; 256J.08, subdivisions 10, 53, 61, 62, 
105.3 	81, and 83; 256J.30, subdivisions 5, 7, and 8; 256J.33, subdivisions 3, 4, and 5; 256J.34, 
105.4 	subdivisions 1, 2, 3, and 4; and 256J.37, subdivision 10, are repealed.
105.5 	(b) Minnesota Statutes 2022, section 256.8799, is repealed.

105.6 	EFFECTIVE DATE. Paragraph (a) is effective March 1, 2025, except the repeal of 
105.7 	Minnesota Statutes 2022, sections 256J.08, subdivisions 62 and 53, and 256J.37, subdivision 
105.8 	10, is effective July 1, 2024. Paragraph (b) is effective August 1, 2023.

105.9 	ARTICLE 5
105.10 	ADDRESSING DEEP POVERTY

105.11 	Section 1. Minnesota Statutes 2022, section 256D.01, subdivision 1a, is amended to read:
105.12 		Subd. 1a.Standards. (a) A principal objective in providing general assistance is to 
105.13 	provide for single adults, childless couples, or children as defined in section 256D.02, 
105.14 	subdivision 6, ineligible for federal programs who are unable to provide for themselves. 
105.15 	The minimum standard of assistance determines the total amount of the general assistance 
105.16 	grant without separate standards for shelter, utilities, or other needs.
105.17 	(b) The commissioner shall set the standard of assistance for an assistance unit consisting 
105.18 	of an adult a recipient who is childless and unmarried or living apart from children and 
105.19 	spouse and who does not live with a parent or parents or a legal custodian is the cash portion 
105.20 	of the MFIP transitional standard for a single adult under section 256J.24, subdivision 5. 
105.21 	When the other standards specified in this subdivision increase, this standard must also be 
105.22 	increased by the same percentage.
105.23 	(c) For an assistance unit consisting of a single adult who lives with a parent or parents, 
105.24 	the general assistance standard of assistance is the amount that the aid to families with 
105.25 	dependent children standard of assistance, in effect on July 16, 1996, would increase if the 
105.26 	recipient were added as an additional minor child to an assistance unit consisting of the 
105.27 	recipient's parent and all of that parent's family members, except that the standard may not 
105.28 	exceed the standard for a general assistance recipient living alone is the cash portion of the 
105.29 	MFIP transitional standard for a single adult under section 256J.24, subdivision 5. Benefits 
105.30 	received by a responsible relative of the assistance unit under the Supplemental Security 
105.31 	Income program, a workers' compensation program, the Minnesota supplemental aid program, 
105.32 	or any other program based on the responsible relative's disability, and any benefits received 
105.33 	by a responsible relative of the assistance unit under the Social Security retirement program, 
106.1 	may not be counted in the determination of eligibility or benefit level for the assistance unit. 
106.2 	Except as provided below, the assistance unit is ineligible for general assistance if the 
106.3 	available resources or the countable income of the assistance unit and the parent or parents 
106.4 	with whom the assistance unit lives are such that a family consisting of the assistance unit's 
106.5 	parent or parents, the parent or parents' other family members and the assistance unit as the 
106.6 	only or additional minor child would be financially ineligible for general assistance. For 
106.7 	the purposes of calculating the countable income of the assistance unit's parent or parents, 
106.8 	the calculation methods must follow the provisions under section 256P.06.
106.9 	(d) For an assistance unit consisting of a childless couple, the standards of assistance 
106.10 	are the same as the first and second adult standards of the aid to families with dependent 
106.11 	children program in effect on July 16, 1996. If one member of the couple is not included in 
106.12 	the general assistance grant, the standard of assistance for the other is the second adult 
106.13 	standard of the aid to families with dependent children program as of July 16, 1996.

106.14 	Sec. 2. Minnesota Statutes 2022, section 256D.024, subdivision 1, is amended to read:
106.15 		Subdivision 1.Person convicted of drug offenses. (a) If An applicant or recipient
106.16 	individual who has been convicted of a felony-level drug offense after July 1, 1997, the 
106.17 	assistance unit is ineligible for benefits under this chapter until five years after the applicant 
106.18 	has completed terms of the court-ordered sentence, unless the person is participating in a 
106.19 	drug treatment program, has successfully completed a drug treatment program, or has been 
106.20 	assessed by the county and determined not to be in need of a drug treatment program. Persons 
106.21 	subject to the limitations of this subdivision who become eligible for assistance under this 
106.22 	chapter shall during the previous ten years from the date of application or recertification 
106.23 	may be subject to random drug testing as a condition of continued eligibility and shall lose 
106.24 	eligibility for benefits for five years beginning the month following:. The county must 
106.25 	provide information about substance use disorder treatment programs to a person who tests 
106.26 	positive for an illegal controlled substance.
106.27 	(1) Any positive test result for an illegal controlled substance; or
106.28 	(2) discharge of sentence after conviction for another drug felony.
106.29 	(b) For the purposes of this subdivision, "drug offense" means a conviction that occurred 
106.30 	after July 1, 1997, during the previous ten years from the date of application or recertification
106.31 	of sections 152.021 to 152.025, 152.0261, 152.0262, or 152.096. Drug offense also means 
106.32 	a conviction in another jurisdiction of the possession, use, or distribution of a controlled 
106.33 	substance, or conspiracy to commit any of these offenses, if the offense conviction occurred 
106.34 	after July 1, 1997, during the previous ten years from the date of application or recertification
107.1 	and the conviction is a felony offense in that jurisdiction, or in the case of New Jersey, a 
107.2 	high misdemeanor.

107.3 	Sec. 3. Minnesota Statutes 2022, section 256D.06, subdivision 5, is amended to read:
107.4 		Subd. 5.Eligibility; requirements. (a) Any applicant, otherwise eligible for general 
107.5 	assistance and possibly eligible for maintenance benefits from any other source shall (1) 
107.6 	make application for those benefits within 30 90 days of the general assistance application; 
107.7 	and (2) execute an interim assistance agreement on a form as directed by the commissioner.
107.8 	(b) The commissioner shall review a denial of an application for other maintenance 
107.9 	benefits and may require a recipient of general assistance to file an appeal of the denial if 
107.10 	appropriate. If found eligible for benefits from other sources, and a payment received from 
107.11 	another source relates to the period during which general assistance was also being received, 
107.12 	the recipient shall be required to reimburse the county agency for the interim assistance 
107.13 	paid. Reimbursement shall not exceed the amount of general assistance paid during the time 
107.14 	period to which the other maintenance benefits apply and shall not exceed the state standard 
107.15 	applicable to that time period.
107.16 	(c) The commissioner may contract with the county agencies, qualified agencies, 
107.17 	organizations, or persons to provide advocacy and support services to process claims for 
107.18 	federal disability benefits for applicants or recipients of services or benefits supervised by 
107.19 	the commissioner using money retained under this section.
107.20 	(d) The commissioner may provide methods by which county agencies shall identify, 
107.21 	refer, and assist recipients who may be eligible for benefits under federal programs for 
107.22 	people with a disability.
107.23 	(e) The total amount of interim assistance recoveries retained under this section for 
107.24 	advocacy, support, and claim processing services shall not exceed 35 percent of the interim 
107.25 	assistance recoveries in the prior fiscal year.

107.26 	Sec. 4. Minnesota Statutes 2022, section 256I.03, subdivision 7, is amended to read:
107.27 		Subd. 7.Countable income. (a) "Countable income" means all income received by an 
107.28 	applicant or recipient as described under section 256P.06, less any applicable exclusions or 
107.29 	disregards. For a recipient of any cash benefit from the SSI program, countable income 
107.30 	means the SSI benefit limit in effect at the time the person is a recipient of housing support, 
107.31 	less the medical assistance personal needs allowance under section 256B.35. If the SSI limit 
108.1 	or benefit is reduced for a person due to events other than receipt of additional income, 
108.2 	countable income means actual income less any applicable exclusions and disregards.
108.3 	(b) For a recipient of any cash benefit from the SSI program who does not live in a 
108.4 	setting described in section 256I.04, subdivision 2a, paragraph (b), clause (2), countable 
108.5 	income equals the SSI benefit limit in effect at the time the person is a recipient of housing 
108.6 	support, less the medical assistance personal needs allowance under section 256B.35. If the 
108.7 	SSI limit or benefit is reduced for a person due to events other than receipt of additional 
108.8 	income, countable income equals actual income less any applicable exclusions and disregards.
108.9 	(c) For a recipient of any cash benefit from the SSI program who lives in a setting as 
108.10 	described in section 256I.04, subdivision 2a, paragraph (b), clause (2), countable income 
108.11 	equals 30 percent of the SSI benefit limit in effect at the time a person is a recipient of 
108.12 	housing support. If the SSI limit or benefit is reduced for a person due to events other than 
108.13 	receipt of additional income, countable income equals 30 percent of the actual income less 
108.14 	any applicable exclusions and disregards. For recipients under this paragraph, the medical 
108.15 	assistance personal needs allowance described in sections 256I.04, subdivision 1, paragraph 
108.16 	(a), clause (2), and 256I.04, subdivision 1, paragraph (b), does not apply.
108.17 	(d) Notwithstanding the earned income disregard described in section 256P.03, for a 
108.18 	recipient of unearned income as defined in section 256P.06, subdivision 3, clause (2), other 
108.19 	than SSI who lives in a setting described in section 256I.04, subdivision 2a, paragraph (b), 
108.20 	clause (2), countable income equals 30 percent of the recipient's total income after applicable 
108.21 	exclusions and disregards. Total income includes any unearned income as defined in section 
108.22 	256P.06 and any earned income in the month the person is a recipient of housing support. 
108.23 	For recipients under this paragraph, the medical assistance personal needs allowance 
108.24 	described in sections 256I.04, subdivision 1, paragraph (a), clause (2), and 256I.04, 
108.25 	subdivision 1, paragraph (b), does not apply.

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

108.27 	Sec. 5. Minnesota Statutes 2022, section 256J.26, subdivision 1, is amended to read:
108.28 		Subdivision 1.Person convicted of drug offenses. (a) An individual who has been 
108.29 	convicted of a felony level drug offense committed during the previous ten years from the 
108.30 	date of application or recertification is subject to the following:
108.31 	(1) Benefits for the entire assistance unit must be paid in vendor form for shelter and 
108.32 	utilities during any time the applicant is part of the assistance unit.
109.1 	(2) The convicted applicant or participant shall may be subject to random drug testing 
109.2 	as a condition of continued eligibility and. Following any positive test for an illegal controlled 
109.3 	substance is subject to the following sanctions:, the county must provide information about 
109.4 	substance use disorder treatment programs to the applicant or participant.
109.5 	(i) for failing a drug test the first time, the residual amount of the participant's grant after 
109.6 	making vendor payments for shelter and utility costs, if any, must be reduced by an amount 
109.7 	equal to 30 percent of the MFIP standard of need for an assistance unit of the same size. 
109.8 	When a sanction under this subdivision is in effect, the job counselor must attempt to meet 
109.9 	with the person face-to-face. During the face-to-face meeting, the job counselor must explain 
109.10 	the consequences of a subsequent drug test failure and inform the participant of the right to 
109.11 	appeal the sanction under section 256J.40. If a face-to-face meeting is not possible, the 
109.12 	county agency must send the participant a notice of adverse action as provided in section 
109.13 	256J.31, subdivisions 4 and 5, and must include the information required in the face-to-face 
109.14 	meeting; or
109.15 	(ii) for failing a drug test two times, the participant is permanently disqualified from 
109.16 	receiving MFIP assistance, both the cash and food portions. The assistance unit's MFIP 
109.17 	grant must be reduced by the amount which would have otherwise been made available to 
109.18 	the disqualified participant. Disqualification under this item does not make a participant 
109.19 	ineligible for the Supplemental Nutrition Assistance Program (SNAP). Before a 
109.20 	disqualification under this provision is imposed, the job counselor must attempt to meet 
109.21 	with the participant face-to-face. During the face-to-face meeting, the job counselor must 
109.22 	identify other resources that may be available to the participant to meet the needs of the 
109.23 	family and inform the participant of the right to appeal the disqualification under section 
109.24 	256J.40. If a face-to-face meeting is not possible, the county agency must send the participant 
109.25 	a notice of adverse action as provided in section 256J.31, subdivisions 4 and 5, and must 
109.26 	include the information required in the face-to-face meeting.
109.27 	(3) A participant who fails a drug test the first time and is under a sanction due to other 
109.28 	MFIP program requirements is considered to have more than one occurrence of 
109.29 	noncompliance and is subject to the applicable level of sanction as specified under section 
109.30 	256J.46, subdivision 1, paragraph (d).
109.31 	(b) Applicants requesting only SNAP benefits or participants receiving only SNAP 
109.32 	benefits, who have been convicted of a felony-level drug offense that occurred after July 
109.33 	1, 1997, during the previous ten years from the date of application or recertification may, 
109.34 	if otherwise eligible, receive SNAP benefits if. The convicted applicant or participant is
109.35 	may be subject to random drug testing as a condition of continued eligibility. Following a 
110.1 	positive test for an illegal controlled substance, the applicant is subject to the following 
110.2 	sanctions: county must provide information about substance use disorder treatment programs 
110.3 	to the applicant or participant.
110.4 	(1) for failing a drug test the first time, SNAP benefits shall be reduced by an amount 
110.5 	equal to 30 percent of the applicable SNAP benefit allotment. When a sanction under this 
110.6 	clause is in effect, a job counselor must attempt to meet with the person face-to-face. During 
110.7 	the face-to-face meeting, a job counselor must explain the consequences of a subsequent 
110.8 	drug test failure and inform the participant of the right to appeal the sanction under section 
110.9 	256J.40. If a face-to-face meeting is not possible, a county agency must send the participant 
110.10 	a notice of adverse action as provided in section 256J.31, subdivisions 4 and 5, and must 
110.11 	include the information required in the face-to-face meeting; and
110.12 	(2) for failing a drug test two times, the participant is permanently disqualified from 
110.13 	receiving SNAP benefits. Before a disqualification under this provision is imposed, a job 
110.14 	counselor must attempt to meet with the participant face-to-face. During the face-to-face 
110.15 	meeting, the job counselor must identify other resources that may be available to the 
110.16 	participant to meet the needs of the family and inform the participant of the right to appeal 
110.17 	the disqualification under section 256J.40. If a face-to-face meeting is not possible, a county 
110.18 	agency must send the participant a notice of adverse action as provided in section 256J.31, 
110.19 	subdivisions 4 and 5, and must include the information required in the face-to-face meeting.
110.20 	(c) For the purposes of this subdivision, "drug offense" means an offense a conviction
110.21 	that occurred during the previous ten years from the date of application or recertification 
110.22 	of sections 152.021 to 152.025, 152.0261, 152.0262, 152.096, or 152.137. Drug offense 
110.23 	also means a conviction in another jurisdiction of the possession, use, or distribution of a 
110.24 	controlled substance, or conspiracy to commit any of these offenses, if the offense conviction
110.25 	occurred during the previous ten years from the date of application or recertification and 
110.26 	the conviction is a felony offense in that jurisdiction, or in the case of New Jersey, a high 
110.27 	misdemeanor.

110.28 	Sec. 6. Minnesota Statutes 2022, section 256P.01, is amended by adding a subdivision to 
110.29 	read:
110.30 		Subd. 5a.Lived-experience engagement. "Lived-experience engagement" means an 
110.31 	intentional engagement of people with lived experience by a federal, Tribal, state, county, 
110.32 	municipal, or nonprofit human services agency funded in part or in whole by federal, state, 
110.33 	local government, Tribal Nation, public, private, or philanthropic funds to gather and share 
110.34 	feedback on the impact of human services programs.

111.1 	Sec. 7. Minnesota Statutes 2022, section 256P.02, subdivision 2, is amended to read:
111.2 		Subd. 2.Personal property limitations. The equity value of an assistance unit's personal 
111.3 	property listed in clauses (1) to (5) must not exceed $10,000 for applicants and participants. 
111.4 	For purposes of this subdivision, personal property is limited to:
111.5 	(1) cash not excluded under subdivision 4;
111.6 	(2) bank accounts;
111.7 	(3) liquid stocks and bonds that can be readily accessed without a financial penalty;
111.8 	(4) vehicles not excluded under subdivision 3; and
111.9 	(5) the full value of business accounts used to pay expenses not related to the business.

111.10 	Sec. 8. Minnesota Statutes 2022, section 256P.02, is amended by adding a subdivision to 
111.11 	read:
111.12 		Subd. 4.Health and human services recipient engagement income. Income received 
111.13 	from lived-experience engagement, as defined in section 256P.01, subdivision 6, shall be 
111.14 	excluded when determining the equity value of personal property.

111.15 	Sec. 9. Minnesota Statutes 2022, section 256P.06, subdivision 3, is amended to read:
111.16 		Subd. 3.Income inclusions. The following must be included in determining the income 
111.17 	of an assistance unit:
111.18 	(1) earned income; and
111.19 	(2) unearned income, which includes:
111.20 	(i) interest and dividends from investments and savings;
111.21 	(ii) capital gains as defined by the Internal Revenue Service from any sale of real property;
111.22 	(iii) proceeds from rent and contract for deed payments in excess of the principal and 
111.23 	interest portion owed on property;
111.24 	(iv) income from trusts, excluding special needs and supplemental needs trusts;
111.25 	(v) interest income from loans made by the participant or household;
111.26 	(vi) cash prizes and winnings;
111.27 	(vii) unemployment insurance income that is received by an adult member of the 
111.28 	assistance unit unless the individual receiving unemployment insurance income is:
112.1 	(A) 18 years of age and enrolled in a secondary school; or
112.2 	(B) 18 or 19 years of age, a caregiver, and is enrolled in school at least half-time;
112.3 	(viii) retirement, survivors, and disability insurance payments;
112.4 	(ix) nonrecurring income over $60 per quarter unless the nonrecurring income is: (A) 
112.5 	from tax refunds, tax rebates, or tax credits; (B) a reimbursement, rebate, award, grant, or 
112.6 	refund of personal or real property or costs or losses incurred when these payments are 
112.7 	made by: a public agency; a court; solicitations through public appeal; a federal, state, or 
112.8 	local unit of government; or a disaster assistance organization; (C) provided as an in-kind 
112.9 	benefit; or (D) earmarked and used for the purpose for which it was intended, subject to 
112.10 	verification requirements under section 256P.04;
112.11 	(x) retirement benefits;
112.12 	(xi) cash assistance benefits, as defined by each program in chapters 119B, 256D, 256I, 
112.13 	and 256J;
112.14 	(xii) Tribal per capita payments unless excluded by federal and state law;
112.15 	(xiii) (xii) income from members of the United States armed forces unless excluded 
112.16 	from income taxes according to federal or state law;
112.17 	(xiv) (xiii) all child support payments for programs under chapters 119B, 256D, and 
112.18 	256I;
112.19 	(xv) (xiv) the amount of child support received that exceeds $100 for assistance units 
112.20 	with one child and $200 for assistance units with two or more children for programs under 
112.21 	chapter 256J;
112.22 	(xvi) (xv) spousal support; and
112.23 	(xvii) (xvi) workers' compensation.

112.24 	Sec. 10. Minnesota Statutes 2022, section 256P.06, is amended by adding a subdivision 
112.25 	to read:
112.26 		Subd. 4.Recipient engagement income. Income received from lived-experience 
112.27 	engagement, as defined in section 256P.01, subdivision 5a, must not be counted as income 
112.28 	for purposes of determining or redetermining eligibility or benefits.

113.1 	Sec. 11. Minnesota Statutes 2022, section 609B.425, subdivision 2, is amended to read:
113.2 		Subd. 2.Benefit eligibility. (a) For general assistance benefits and Minnesota 
113.3 	supplemental aid under chapter 256D, a person convicted of a felony-level drug offense 
113.4 	after July 1, 1997, is ineligible for general assistance benefits and Supplemental Security 
113.5 	Income under chapter 256D until: during the previous ten years from the date of application 
113.6 	or recertification may be subject to random drug testing. The county must provide information 
113.7 	about substance use disorder treatment programs to a person who tests positive for an illegal 
113.8 	controlled substance.
113.9 	(1) five years after completing the terms of a court-ordered sentence; or
113.10 	(2) unless the person is participating in a drug treatment program, has successfully 
113.11 	completed a program, or has been determined not to be in need of a drug treatment program.
113.12 	(b) A person who becomes eligible for assistance under chapter 256D is subject to 
113.13 	random drug testing and shall lose eligibility for benefits for five years beginning the month 
113.14 	following:
113.15 	(1) any positive test for an illegal controlled substance; or
113.16 	(2) discharge of sentence for conviction of another drug felony.
113.17 	(c) (b) Parole violators and fleeing felons are ineligible for benefits and persons 
113.18 	fraudulently misrepresenting eligibility are also ineligible to receive benefits for ten years.

113.19 	Sec. 12. Minnesota Statutes 2022, section 609B.435, subdivision 2, is amended to read:
113.20 		Subd. 2.Drug offenders; random testing; sanctions. A person who is an applicant for 
113.21 	benefits from the Minnesota family investment program or MFIP, the vehicle for temporary 
113.22 	assistance for needy families or TANF, and who has been convicted of a felony-level drug 
113.23 	offense shall may be subject to certain conditions, including random drug testing, in order 
113.24 	to receive MFIP benefits. Following any positive test for a controlled substance, the convicted 
113.25 	applicant or participant is subject to the following sanctions: county must provide information 
113.26 	about substance use disorder treatment programs to the applicant or participant.
113.27 	(1) a first time drug test failure results in a reduction of benefits in an amount equal to 
113.28 	30 percent of the MFIP standard of need; and
113.29 	(2) a second time drug test failure results in permanent disqualification from receiving 
113.30 	MFIP assistance.
113.31 	A similar disqualification sequence occurs if the applicant is receiving Supplemental Nutrition 
113.32 	Assistance Program (SNAP) benefits.

114.1 	ARTICLE 6
114.2 	HOUSING AND HOMELESSNESS

114.3 	Section 1. Minnesota Statutes 2022, section 145.4716, subdivision 3, is amended to read:
114.4 		Subd. 3.Youth eligible for services. Youth 24 years of age or younger shall be eligible 
114.5 	for all services, support, and programs provided under this section and section 145.4717, 
114.6 	and all shelter, housing beds, and services provided by the commissioner of human services 
114.7 	to sexually exploited youth and youth at risk of sexual exploitation under section 256K.47.

114.8 	Sec. 2. Minnesota Statutes 2022, section 256I.04, subdivision 1, is amended to read:
114.9 		Subdivision 1.Individual eligibility requirements. An individual is eligible for and 
114.10 	entitled to a housing support payment to be made on the individual's behalf if the agency 
114.11 	has approved the setting where the individual will receive housing support and the individual 
114.12 	meets the requirements in paragraph (a), (b), or (c), or (d).
114.13 	(a) The individual is aged, blind, or is over 18 years of age with a disability as determined 
114.14 	under the criteria used by the title II program of the Social Security Act, and meets the 
114.15 	resource restrictions and standards of section 256P.02, and the individual's countable income 
114.16 	after deducting the (1) exclusions and disregards of the SSI program, (2) the medical 
114.17 	assistance personal needs allowance under section 256B.35, and (3) an amount equal to the 
114.18 	income actually made available to a community spouse by an elderly waiver participant 
114.19 	under the provisions of sections 256B.0575, paragraph (a), clause (4), and 256B.058, 
114.20 	subdivision 2, is less than the monthly rate specified in the agency's agreement with the 
114.21 	provider of housing support in which the individual resides.
114.22 	(b) The individual meets a category of eligibility under section 256D.05, subdivision 1, 
114.23 	paragraph (a), clauses (1), (3), (4) to (8), and (13), and paragraph (b), if applicable, and the 
114.24 	individual's resources are less than the standards specified by section 256P.02, and the 
114.25 	individual's countable income as determined under section 256P.06, less the medical 
114.26 	assistance personal needs allowance under section 256B.35 is less than the monthly rate 
114.27 	specified in the agency's agreement with the provider of housing support in which the 
114.28 	individual resides.
114.29 	(c) The individual lacks a fixed, adequate, nighttime residence upon discharge from a 
114.30 	residential behavioral health treatment program, as determined by treatment staff from the 
114.31 	residential behavioral health treatment program. An individual is eligible under this paragraph 
114.32 	for up to three months, including a full or partial month from the individual's move-in date 
115.1 	at a setting approved for housing support following discharge from treatment, plus two full 
115.2 	months.
115.3 	(d) The individual meets the criteria related to establishing a certified disability or 
115.4 	disabling condition in paragraph (a) or (b) and lacks a fixed, adequate, nighttime residence 
115.5 	upon discharge from a correctional facility, as determined by an authorized representative 
115.6 	from a Minnesota-based correctional facility. An individual is eligible under this paragraph 
115.7 	for up to three months, including a full or partial month from the individual's move-in date 
115.8 	at a setting approved for housing support following release, plus two full months. People 
115.9 	who meet the disabling condition criteria established in paragraph (a) or (b) will not have 
115.10 	any countable income for the duration of eligibility under this paragraph.

115.11 	Sec. 3. Minnesota Statutes 2022, section 256K.45, subdivision 3, is amended to read:
115.12 		Subd. 3.Street and community outreach and drop-in program. Youth drop-in centers 
115.13 	must provide walk-in access to crisis intervention and ongoing supportive services including 
115.14 	one-to-one case management services on a self-referral basis. Street and community outreach 
115.15 	programs must locate, contact, and provide information, referrals, and services to homeless 
115.16 	youth, youth at risk of homelessness, and runaways. Information, referrals, and services 
115.17 	provided may include, but are not limited to:
115.18 	(1) family reunification services;
115.19 	(2) conflict resolution or mediation counseling;
115.20 	(3) assistance in obtaining temporary emergency shelter;
115.21 	(4) assistance in obtaining food, clothing, medical care, or mental health counseling;
115.22 	(5) counseling regarding violence, sexual exploitation, substance abuse, sexually 
115.23 	transmitted diseases, and pregnancy;
115.24 	(6) referrals to other agencies that provide support services to homeless youth, youth at 
115.25 	risk of homelessness, and runaways;
115.26 	(7) assistance with education, employment, and independent living skills;
115.27 	(8) aftercare services;
115.28 	(9) specialized services for highly vulnerable runaways and homeless youth, including 
115.29 	teen but not limited to youth at risk of discrimination based on sexual orientation or gender 
115.30 	identity, young parents, emotionally disturbed and mentally ill youth, and sexually exploited 
115.31 	youth; and
116.1 	(10) homelessness prevention.

116.2 	Sec. 4. Minnesota Statutes 2022, section 256K.45, subdivision 7, is amended to read:
116.3 		Subd. 7.Provider repair or improvement grants. (a) Providers that serve homeless 
116.4 	youth under this section may apply for a grant of up to $200,000 $500,000 under this 
116.5 	subdivision to make minor or mechanical repairs or improvements to a facility providing 
116.6 	services to homeless youth or youth at risk of homelessness.
116.7 	(b) Grant applications under this subdivision must include a description of the repairs 
116.8 	or improvements and the estimated cost of the repairs or improvements.
116.9 	(c) Grantees under this subdivision cannot receive grant funds under this subdivision 
116.10 	for two consecutive years.

116.11 	Sec. 5. [256K.47] SAFE HARBOR SHELTER AND HOUSING GRANT PROGRAM.
116.12 		Subdivision 1.Grant program established. The commissioner of human services shall 
116.13 	establish the safe harbor shelter and housing grant program and award grants to providers 
116.14 	who are committed to serving sexually exploited youth and youth at risk of sexual 
116.15 	exploitation. The grant program is to provide street and community outreach programs, 
116.16 	emergency shelter programs, and supportive housing programs, consistent with the program 
116.17 	descriptions in this section in order to address the specialized outreach, shelter, and housing 
116.18 	needs of sexually exploited youth and youth at risk of sexual exploitation.
116.19 		Subd. 2.Youth eligible for services. Youth 24 years of age or younger shall be eligible 
116.20 	for all shelter, housing beds, and services provided under this section and all services, 
116.21 	support, and programs provided by the commissioner of health to sexually exploited youth 
116.22 	and youth at risk of sexual exploitation under sections 145.4716 and 145.4717.
116.23 		Subd. 3.Street and community outreach. Street and community outreach programs 
116.24 	receiving grants under this section must locate, contact, and provide information, referrals, 
116.25 	and services to eligible youth. Information, referrals, and services provided by street and 
116.26 	community outreach programs may include but are not limited to:
116.27 	(1) family reunification services;
116.28 	(2) conflict resolution or mediation counseling;
116.29 	(3) assistance in obtaining temporary emergency shelter;
116.30 	(4) assistance in obtaining food, clothing, medical care, or mental health counseling;
117.1 	(5) counseling regarding violence, sexual exploitation, substance use, sexually transmitted 
117.2 	infections, and pregnancy;
117.3 	(6) referrals to other agencies that provide support services to sexually exploited youth 
117.4 	and youth at risk of sexual exploitation;
117.5 	(7) assistance with education, employment, and independent living skills;
117.6 	(8) aftercare services;
117.7 	(9) specialized services for sexually exploited youth and youth at risk of sexual 
117.8 	exploitation, including youth experiencing homelessness and youth with mental health 
117.9 	needs; and
117.10 	(10) services to address the prevention of sexual exploitation and homelessness.
117.11 		Subd. 4.Emergency shelter program. (a) Emergency shelter programs must provide 
117.12 	eligible youth with referral and walk-in access to emergency, short-term residential care. 
117.13 	The program shall provide eligible youth with safe, dignified shelter, including private 
117.14 	shower facilities, beds, and meals each day; and shall assist eligible youth with reunification 
117.15 	with the family or legal guardian when required or appropriate.
117.16 	(b) The services provided at emergency shelters may include but are not limited to:
117.17 	(1) specialized services to address the trauma of sexual exploitation;
117.18 	(2) family reunification services;
117.19 	(3) individual, family, and group counseling;
117.20 	(4) assistance obtaining clothing;
117.21 	(5) access to medical and dental care and mental health counseling;
117.22 	(6) counseling regarding violence, sexual exploitation, substance use, sexually transmitted 
117.23 	infections, and pregnancy;
117.24 	(7) education and employment services;
117.25 	(8) recreational activities;
117.26 	(9) advocacy and referral services;
117.27 	(10) independent living skills training;
117.28 	(11) aftercare and follow-up services;
117.29 	(12) transportation; and
118.1 	(13) services to address the prevention of sexual exploitation and homelessness.
118.2 		Subd. 5.Supportive housing programs. Supportive housing programs must help eligible 
118.3 	youth find and maintain safe, dignified housing and provide related supportive services and 
118.4 	referrals. The program may also provide rental assistance. Services provided in supportive 
118.5 	housing programs may include but are not limited to:
118.6 	(1) specialized services to address the trauma of sexual exploitation;
118.7 	(2) education and employment services;
118.8 	(3) budgeting and money management;
118.9 	(4) assistance in securing housing appropriate to needs and income;
118.10 	(5) counseling regarding violence, sexual exploitation, substance use, sexually transmitted 
118.11 	infections, and pregnancy;
118.12 	(6) referral for medical services or chemical dependency treatment;
118.13 	(7) parenting skills;
118.14 	(8) self-sufficiency support services and independent living skills training;
118.15 	(9) aftercare and follow-up services; and
118.16 	(10) services to address the prevention of sexual exploitation and homelessness 
118.17 	prevention.
118.18 		Subd. 6.Funding. Funds appropriated for this section may be expended on programs 
118.19 	described under subdivisions 3 to 5, technical assistance, and capacity building to meet the 
118.20 	greatest need on a statewide basis.

118.21 	Sec. 6. Laws 2021, First Special Session chapter 7, article 17, section 5, subdivision 1, is 
118.22 	amended to read:
118.23 		Subdivision 1.Housing transition cost. (a) This act includes $682,000 in fiscal year 
118.24 	2022 and $1,637,000 in fiscal year 2023 for a onetime payment per transition of up to $3,000 
118.25 	to cover costs associated with moving to a community setting that are not covered by other 
118.26 	sources. Covered costs include: (1) lease or rent deposits; (2) security deposits; (3) utilities 
118.27 	setup costs, including telephone and Internet services; and (4) essential furnishings and 
118.28 	supplies. The commissioner of human services shall seek an amendment to the medical 
118.29 	assistance state plan to allow for these payments as a housing stabilization service under 
118.30 	Minnesota Statutes, section 256B.051. The general fund base in this act for this purpose is 
118.31 	$1,227,000 in fiscal year 2024 and $0 in fiscal year 2025.
119.1 	(b) This subdivision expires March 31, 2024.
119.2 	(b) An individual is only eligible for a housing transition cost payment if the individual 
119.3 	is moving from an institution or provider-controlled setting into their own home.

119.4 	EFFECTIVE DATE. This section is effective upon federal approval.

119.5 	Sec. 7. HOUSING STABILIZATION SERVICES INFLATIONARY ADJUSTMENT.
 119.6 	The commissioner of human services shall seek federal approval to apply biennial 
119.7 	inflationary updates to housing stabilization services rates based on the consumer price 
119.8 	index. Beginning January 1, 2024, the commissioner must update rates using the most 
119.9 	recently available data from the consumer price index.

119.10 	EFFECTIVE DATE. This section is effective January 1, 2024, or upon federal approval, 
119.11 	whichever is later. The commissioner shall notify the revisor of statutes when federal 
119.12 	approval is obtained.

119.13 	ARTICLE 7
119.14 	BEHAVIORAL HEALTH

119.15 	Section 1. Minnesota Statutes 2022, section 245.4889, subdivision 1, is amended to read:
119.16 		Subdivision 1.Establishment and authority. (a) The commissioner is authorized to 
119.17 	make grants from available appropriations to assist:
119.18 	(1) counties;
119.19 	(2) Indian tribes;
119.20 	(3) children's collaboratives under section 124D.23 or 245.493; or
119.21 	(4) mental health service providers.
119.22 	(b) The following services are eligible for grants under this section:
119.23 	(1) services to children with emotional disturbances as defined in section 245.4871, 
119.24 	subdivision 15, and their families;
119.25 	(2) transition services under section 245.4875, subdivision 8, for young adults under 
119.26 	age 21 and their families;
119.27 	(3) respite care services for children with emotional disturbances or severe emotional 
119.28 	disturbances who are at risk of out-of-home placement or already in out-of-home placement 
119.29 	in family foster settings as defined in chapter 245A and at risk of change in out-of-home 
119.30 	placement or placement in a residential facility or other higher level of care. Allowable 
120.1 	activities and expenses for respite care services are defined under subdivision 4. A child is 
120.2 	not required to have case management services to receive respite care services;
120.3 	(4) children's mental health crisis services;
120.4 	(5) mental health services for people from cultural and ethnic minorities, including 
120.5 	supervision of clinical trainees who are Black, indigenous, or people of color;
120.6 	(6) children's mental health screening and follow-up diagnostic assessment and treatment;
120.7 	(7) services to promote and develop the capacity of providers to use evidence-based 
120.8 	practices in providing children's mental health services;
120.9 	(8) school-linked mental health services under section 245.4901;
120.10 	(9) building evidence-based mental health intervention capacity for children birth to age 
120.11 	five;
120.12 	(10) suicide prevention and counseling services that use text messaging statewide;
120.13 	(11) mental health first aid training;
120.14 	(12) training for parents, collaborative partners, and mental health providers on the 
120.15 	impact of adverse childhood experiences and trauma and development of an interactive 
120.16 	website to share information and strategies to promote resilience and prevent trauma;
120.17 	(13) transition age services to develop or expand mental health treatment and supports 
120.18 	for adolescents and young adults 26 years of age or younger;
120.19 	(14) early childhood mental health consultation;
120.20 	(15) evidence-based interventions for youth at risk of developing or experiencing a first 
120.21 	episode of psychosis, and a public awareness campaign on the signs and symptoms of 
120.22 	psychosis;
120.23 	(16) psychiatric consultation for primary care practitioners; and
120.24 	(17) providers to begin operations and meet program requirements when establishing a 
120.25 	new children's mental health program. These may be start-up grants, including start-up 
120.26 	grants; and.
120.27 	(18) evidence-informed interventions for youth and young adults who are at risk of  
120.28 	developing a mood disorder or are experiencing an emerging mood disorder including  major 
120.29 	depression and bipolar disorders and a public awareness campaign on the signs and  symptoms 
120.30 	of mood disorders in youth and young adults
121.1 	(c) Services under paragraph (b) must be designed to help each child to function and 
121.2 	remain with the child's family in the community and delivered consistent with the child's 
121.3 	treatment plan. Transition services to eligible young adults under this paragraph must be 
121.4 	designed to foster independent living in the community.
121.5 	(d) As a condition of receiving grant funds, a grantee shall obtain all available third-party 
121.6 	reimbursement sources, if applicable.

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

121.8 	Sec. 2. [245.4904] EMERGING MOOD DISORDER GRANT PROGRAM.
121.9 		Subdivision 1.Creation. (a) The emerging mood disorder grant program is established 
121.10 	in the Department of Human Services to fund:
121.11 	(1) evidence-informed interventions for youth and young adults who are at risk of  
121.12 	developing a mood disorder or are experiencing an emerging mood disorder, including 
121.13 	major depression and bipolar disorders; and
121.14 	(2) a public awareness campaign on the signs and symptoms of mood disorders in youth  
121.15 	and young adults.
121.16 	(b) Emerging mood disorder services are eligible for children's mental health grants as  
121.17 	specified in section 245.4889, subdivision 1, paragraph (b), clause (18).
121.18 		Subd. 2.Activities. (a) All emerging mood disorder grant program recipients must:
121.19 	(1) provide intensive treatment and support to adolescents and young adults experiencing  
121.20 	or at risk of experiencing an emerging mood disorder. Intensive treatment and support  
121.21 	includes medication management, psychoeducation for the individual and the individual's  
121.22 	family, case management, employment support, education support, cognitive behavioral  
121.23 	approaches, social skills training, peer support, crisis planning, and stress management;
121.24 	(2) conduct outreach and provide training and guidance to mental health and health care  
121.25 	professionals, including postsecondary health clinicians, on early symptoms of mood  
121.26 	disorders, screening tools, and best practices;
121.27 	(3) ensure access for individuals to emerging mood disorder services under this section,  
121.28 	including ensuring access for individuals who live in rural areas; and
121.29 	(4) use all available funding streams.
122.1 	(b) Grant money may also be used to pay for housing or travel expenses for individuals  
122.2 	receiving services or to address other barriers preventing individuals and their families from  
122.3 	participating in emerging mood disorder services.
122.4 	(c) Grant money may be used by the grantee to evaluate the efficacy of providing 
122.5 	intensive services and supports to people with emerging mood disorders.
122.6 		Subd. 3.Eligibility. Program activities must be provided to youth and young adults with  
122.7 	early signs of an emerging mood disorder.
122.8 		Subd. 4.Outcomes. Evaluation of program activities must utilize evidence-based 
122.9 	practices and must include the following outcome evaluation criteria:
122.10 	(1) whether individuals experience a reduction in mood disorder symptoms; and
122.11 	(2) whether individuals experience a decrease in inpatient mental health hospitalizations.

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

122.13 	Sec. 3. Minnesota Statutes 2022, section 254B.02, subdivision 5, is amended to read:
122.14 		Subd. 5.Administrative adjustment Local agency allocation. The commissioner may 
122.15 	make payments to local agencies from money allocated under this section to support 
122.16 	administrative activities under sections 254B.03 and 254B.04 individuals with substance 
122.17 	use disorders. The administrative payment must not exceed the lesser of: (1) five percent 
122.18 	of the first $50,000, four percent of the next $50,000, and three percent of the remaining 
122.19 	payments for services from the special revenue account according to subdivision 1; or (2)
122.20 	be less than 133 percent of the local agency administrative payment for the fiscal year ending 
122.21 	June 30, 2009, adjusted in proportion to the statewide change in the appropriation for this 
122.22 	chapter.

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

122.24 	Sec. 4. Minnesota Statutes 2022, section 254B.05, subdivision 1, is amended to read:
122.25 		Subdivision 1.Licensure required. (a) Programs licensed by the commissioner are 
122.26 	eligible vendors. Hospitals may apply for and receive licenses to be eligible vendors, 
122.27 	notwithstanding the provisions of section 245A.03. American Indian programs that provide 
122.28 	substance use disorder treatment, extended care, transitional residence, or outpatient treatment 
122.29 	services, and are licensed by tribal government are eligible vendors.
122.30 	(b) A licensed professional in private practice as defined in section 245G.01, subdivision 
122.31 	17, who meets the requirements of section 245G.11, subdivisions 1 and 4, is an eligible 
123.1 	vendor of a comprehensive assessment and assessment summary provided according to 
123.2 	section 245G.05, and treatment services provided according to sections 245G.06 and 
123.3 	245G.07, subdivision 1, paragraphs (a), clauses (1) to (5), and (b); and subdivision 2, clauses 
123.4 	(1) to (6).
123.5 	(c) A county is an eligible vendor for a comprehensive assessment and assessment 
123.6 	summary when provided by an individual who meets the staffing credentials of section 
123.7 	245G.11, subdivisions 1 and 5, and completed according to the requirements of section 
123.8 	245G.05. A county is an eligible vendor of care coordination services when provided by an 
123.9 	individual who meets the staffing credentials of section 245G.11, subdivisions 1 and 7, and 
123.10 	provided according to the requirements of section 245G.07, subdivision 1, paragraph (a), 
123.11 	clause (5).
123.12 	(d) A recovery community organization that meets certification requirements identified 
123.13 	by the commissioner is an eligible vendor of peer support services.
123.14 	(e) Detoxification programs licensed under Minnesota Rules, parts 9530.6510 to 
123.15 	9530.6590, are not eligible vendors. Programs that are not licensed as a residential or 
123.16 	nonresidential substance use disorder treatment or withdrawal management program by the 
123.17 	commissioner or by tribal government or do not meet the requirements of subdivisions 1a 
123.18 	and 1b are not eligible vendors.
123.19 	(f) Hospitals, federally qualified health centers and rural health clinics are eligible vendors 
123.20 	of a comprehensive assessment when completed according to section 245G.05 and by an 
123.21 	individual who meets the criteria of an alcohol and drug counselor according to section 
123.22 	245G.11, subdivision 5. The alcohol and drug counselor must be individually enrolled with 
123.23 	the commissioner and reported on the claim as the individual who provided the service.

123.24 	EFFECTIVE DATE. This section is effective upon federal approval. The commissioner 
123.25 	of human services shall notify the revisor of statutes when federal approval is obtained.

123.26 	Sec. 5. Minnesota Statutes 2022, section 256B.0638, subdivision 1, is amended to read:
123.27 		Subdivision 1.Program established. The commissioner of human services, in 
123.28 	conjunction with the commissioner of health, shall coordinate and implement an opioid 
123.29 	prescribing improvement program to reduce opioid dependency and substance use by 
123.30 	Minnesotans due to the prescribing of opioid analgesics by health care providers and to 
123.31 	support patient-centered, compassionate care for Minnesotans who require treatment with 
123.32 	opioid analgesics.

124.1 	Sec. 6. Minnesota Statutes 2022, section 256B.0638, subdivision 2, is amended to read:
124.2 		Subd. 2.Definitions. (a) For purposes of this section, the terms defined in this subdivision 
124.3 	have the meanings given them.
124.4 	(b) "Commissioner" means the commissioner of human services.
124.5 	(c) "Commissioners" means the commissioner of human services and the commissioner 
124.6 	of health.
124.7 	(d) "DEA" means the United States Drug Enforcement Administration.
124.8 	(e) "Minnesota health care program" means a public health care program administered 
124.9 	by the commissioner of human services under this chapter and chapter 256L, and the 
124.10 	Minnesota restricted recipient program.
124.11 	(f) "Opioid disenrollment sanction standards" means parameters clinical indicators 
124.12 	defined by the Opioid Prescribing Work Group of opioid prescribing practices that fall 
124.13 	outside community standard thresholds for prescribing to such a degree that a provider must 
124.14 	be disenrolled may be subject to sanctions under section 256B.064 as a medical assistance
124.15 	Minnesota health care program provider.
124.16 	(g) "Opioid prescriber" means a licensed health care provider who prescribes opioids to 
124.17 	medical assistance Minnesota health care program and MinnesotaCare enrollees under the 
124.18 	fee-for-service system or under a managed care or county-based purchasing plan.
124.19 	(h) "Opioid quality improvement standard thresholds" means parameters of opioid 
124.20 	prescribing practices that fall outside community standards for prescribing to such a degree 
124.21 	that quality improvement is required.
124.22 	(i) "Program" means the statewide opioid prescribing improvement program established 
124.23 	under this section.
124.24 	(j) "Provider group" means a clinic, hospital, or primary or specialty practice group that 
124.25 	employs, contracts with, or is affiliated with an opioid prescriber. Provider group does not 
124.26 	include a professional association supported by dues-paying members.
124.27 	(k) "Sentinel measures" means measures of opioid use that identify variations in 
124.28 	prescribing practices during the prescribing intervals.

125.1 	Sec. 7. Minnesota Statutes 2022, section 256B.0638, subdivision 4, is amended to read:
125.2 		Subd. 4.Program components. (a) The working group shall recommend to the 
125.3 	commissioners the components of the statewide opioid prescribing improvement program, 
125.4 	including, but not limited to, the following:
125.5 	(1) developing criteria for opioid prescribing protocols, including:
125.6 	(i) prescribing for the interval of up to four days immediately after an acute painful 
125.7 	event;
125.8 	(ii) prescribing for the interval of up to 45 days after an acute painful event; and
125.9 	(iii) prescribing for chronic pain, which for purposes of this program means pain lasting 
125.10 	longer than 45 days after an acute painful event;
125.11 	(2) developing sentinel measures;
125.12 	(3) developing educational resources for opioid prescribers about communicating with 
125.13 	patients about pain management and the use of opioids to treat pain;
125.14 	(4) developing opioid quality improvement standard thresholds and opioid disenrollment
125.15 	standards for opioid prescribers and provider groups. In developing opioid disenrollment 
125.16 	standards, the standards may be described in terms of the length of time in which prescribing 
125.17 	practices fall outside community standards and the nature and amount of opioid prescribing 
125.18 	that fall outside community standards; and
125.19 	(5) addressing other program issues as determined by the commissioners.
125.20 	(b) The opioid prescribing protocols shall not apply to opioids prescribed for patients 
125.21 	who are experiencing pain caused by a malignant condition or who are receiving hospice 
125.22 	care or palliative care, or to opioids prescribed for substance use disorder treatment with 
125.23 	medications for opioid use disorder.
125.24 	(c) All opioid prescribers who prescribe opioids to Minnesota health care program 
125.25 	enrollees must participate in the program in accordance with subdivision 5. Any other 
125.26 	prescriber who prescribes opioids may comply with the components of this program described 
125.27 	in paragraph (a) on a voluntary basis.

125.28 	Sec. 8. Minnesota Statutes 2022, section 256B.0638, subdivision 5, is amended to read:
125.29 		Subd. 5.Program implementation. (a) The commissioner shall implement the programs 
125.30 	within the Minnesota health care quality improvement program to improve the health of 
125.31 	and quality of care provided to Minnesota health care program enrollees. The program must 
126.1 	be designed to support patient-centered care consistent with community standards of care. 
126.2 	The program must discourage unsafe tapering practices and patient abandonment by 
126.3 	providers. The commissioner shall annually collect and report to provider groups the sentinel 
126.4 	measures of data showing individual opioid prescribers' opioid prescribing patterns compared 
126.5 	to their anonymized peers. Provider groups shall distribute data to their affiliated, contracted, 
126.6 	or employed opioid prescribers.
126.7 	(b) The commissioner shall notify an opioid prescriber and all provider groups with 
126.8 	which the opioid prescriber is employed or affiliated when the opioid prescriber's prescribing 
126.9 	pattern exceeds the opioid quality improvement standard thresholds. An opioid prescriber 
126.10 	and any provider group that receives a notice under this paragraph shall submit to the 
126.11 	commissioner a quality improvement plan for review and approval by the commissioner 
126.12 	with the goal of bringing the opioid prescriber's prescribing practices into alignment with 
126.13 	community standards. A quality improvement plan must include:
126.14 	(1) components of the program described in subdivision 4, paragraph (a);
126.15 	(2) internal practice-based measures to review the prescribing practice of the opioid 
126.16 	prescriber and, where appropriate, any other opioid prescribers employed by or affiliated 
126.17 	with any of the provider groups with which the opioid prescriber is employed or affiliated; 
126.18 	and
126.19 	(3) appropriate use of the prescription monitoring program under section 152.126
126.20 	demonstration of patient-centered care consistent with community standards of care.
126.21 	(c) If, after a year from the commissioner's notice under paragraph (b), the opioid 
126.22 	prescriber's prescribing practices for treatment of acute or postacute pain do not improve 
126.23 	so that they are consistent with community standards, the commissioner shall may take one 
126.24 	or more of the following steps:
126.25 	(1) require the prescriber, the provider group, or both, to monitor prescribing practices 
126.26 	more frequently than annually;
126.27 	(2) monitor more aspects of the opioid prescriber's prescribing practices than the sentinel 
126.28 	measures; or
126.29 	(3) require the opioid prescriber to participate in additional quality improvement efforts, 
126.30 	including but not limited to mandatory use of the prescription monitoring program established 
126.31 	under section 152.126.
126.32 	(d) Prescribers treating patients who are on chronic, high doses of opioids must meet 
126.33 	community standards of care, including performing regular assessments and addressing 
127.1 	unwarranted risks of opioid prescribing, but are not required to show measurable changes 
127.2 	in chronic pain prescribing thresholds within a certain period.
127.3 	(e) The commissioner shall dismiss a prescriber from participating in the opioid 
127.4 	prescribing quality improvement program when the prescriber demonstrates that the 
127.5 	prescriber's practices are patient-centered and reflect community standards for safe and 
127.6 	compassionate treatment of patients experiencing pain.
127.7 	(d) (f) The commissioner shall terminate from Minnesota health care programs may 
127.8 	investigate for possible sanctions under section 256B.064 all opioid prescribers and provider 
127.9 	groups whose prescribing practices fall within the applicable opioid disenrollment sanction
127.10 	standards.
127.11 	(e) No physician, advanced practice registered nurse, or physician assistant, acting in 
127.12 	good faith based on the needs of the patient, may be disenrolled by the commissioner of 
127.13 	human services solely for prescribing a dosage that equates to an upward deviation from 
127.14 	morphine milligram equivalent dosage recommendations specified in state or federal opioid 
127.15 	prescribing guidelines or policies, or quality improvement thresholds established under this 
127.16 	section.

127.17 	Sec. 9. Minnesota Statutes 2022, section 256B.0638, is amended by adding a subdivision 
127.18 	to read:
127.19 		Subd. 8.Sanction standards. (a) Providers enrolled in medical assistance under section 
127.20 	256B.04, subdivision 21, providing services to persons enrolled in medical assistance or 
127.21 	MinnesotaCare may be subject to sanctions under section 256B.064 for the following 
127.22 	practices:
127.23 	(1) discontinuing, either abruptly or in the form of a rapid taper, chronic opioid analgesic 
127.24 	therapy from daily doses greater or equal to 50 morphine milligram equivalents a day without 
127.25 	providing patient support. Discontinuing without providing patient support includes failing 
127.26 	to:
127.27 	(i) document and communicate to the patient a clinical rationale for the opioid 
127.28 	discontinuation and for the taper plan or speed;
127.29 	(ii) ascertain pregnancy status in women of childbearing age prior to beginning the 
127.30 	discontinuation;
127.31 	(iii) provide adequate follow-up care to the patient during the opioid discontinuation;
127.32 	(iv) document a safety and pain management plan prior to or during the discontinuation;
128.1 	(v) respond promptly and appropriately to patient-expressed psychological distress, 
128.2 	including but not limited to suicidal ideation;
128.3 	(vi) assess the patient for active, moderate to severe substance use disorder, including 
128.4 	but not limited to opioid use disorder, and refer or treat the patient as appropriate; or
128.5 	(vii) document and address patient harm when it arises. This includes but is not limited 
128.6 	to known harms reported by the patient, harms evident in a clinical evaluation, or harms 
128.7 	that should have been known through adequate chart review;
128.8 	(2) continuing chronic opioid analgesic therapy without a safety plan when specific red 
128.9 	flags for opioid use disorder are present. Failure to develop a safety plan includes but is not 
128.10 	limited to failing to:
128.11 	(i) document and address risks related to the condition or patterns of behavior and the 
128.12 	potential health consequences that an undiagnosed or untreated opioid use disorder poses 
128.13 	to the patient;
128.14 	(ii) pursue a diagnosis when an opioid use disorder is suspected;
128.15 	(iii) include a clear explanation of the safety plan in the patient's health record and 
128.16 	evidence that the plan was communicated to the patient; and
128.17 	(iv) document the clinical rationale for continuing therapy despite the presence of red 
128.18 	flags. Red flags for opioid use disorder that require provider response under this section 
128.19 	include:
128.20 	(A) a history of overdose known to the prescriber or evident from the patient's medical 
128.21 	record in the past 12 months;
128.22 	(B) a history of an episode of opioid withdrawal that is not otherwise explained and is 
128.23 	known to the prescriber or evident from the patient's medical record in the past 12 months;
128.24 	(C) a known history of opioid use disorder. If the opioid use disorder is moderate to 
128.25 	severe and the diagnosis was made within the past 12 months, a higher degree of 
128.26 	consideration must be included in the safety plan;
128.27 	(D) a history of opioid use resulting in neglect of other aspects of the patient's health 
128.28 	that may result in serious harm known to the prescriber or evident from the patient's medical 
128.29 	record in the past 12 months;
128.30 	(E) an active alcohol use disorder. If the alcohol use disorder is moderate to severe, a 
128.31 	higher degree of consideration must be included in the safety plan;
129.1 	(F) a close personal contact of the patient expressing credible concern about the practice 
129.2 	of use or safety of the patient indicating imminent harm to the patient or an opioid use 
129.3 	disorder diagnosis;
129.4 	(G) a pattern of deceptive actions by the patient to obtain opioid prescriptions. Deceptive 
129.5 	actions may include but are not limited to forging prescriptions, tampering with prescriptions, 
129.6 	and falsely reporting to medical staff with the intent of obtaining or protecting an opioid 
129.7 	supply;
129.8 	(H) a pattern of behavior by the patient that is indicative of loss of control or continued 
129.9 	opioid use despite harm. Behaviors indicating a loss of control or continued use include but 
129.10 	are not limited to a pattern of recurrent lost prescriptions, patient requests to increase dosage 
129.11 	that are not supported by clinical reasoning, and a pattern of early refill requests without a 
129.12 	change in clinical condition;
129.13 	(3) prescribing greater than 400 morphine milligram equivalents per day without 
129.14 	assessment of the risk for opioid-induced respiratory depression, without responding to 
129.15 	evidence of opioid-related harm, and without mitigating the risk of opioid-induced respiratory 
129.16 	depression. Failure to address risk of opioid-related harm includes but is not limited to 
129.17 	failure to:
129.18 	(i) assess and document the diagnosis or diagnoses to be managed with chronic opioid 
129.19 	analgesic therapy;
129.20 	(ii) assess and document comorbid health conditions that may impact the safety of opioid 
129.21 	therapy;
129.22 	(iii) screen and document a patient-specific, opioid-related risk benefit analysis;
129.23 	(iv) respond to evidence of harm within the patient's medical record. Evidence of harm 
129.24 	includes but is not limited to opioid-related falls, nonfatal overdoses, and appearing sedated 
129.25 	or with respiratory compromise at clinical visits;
129.26 	(v) document clinical decision making if dosage is increased;
129.27 	(vi) document discussion of an opioid taper with the patient on at least an annual basis; 
129.28 	and
129.29 	(vii) evaluate the patient in person at least every three months or failing to assess for 
129.30 	diversion;
129.31 	(4) continuing chronic opioid analgesic therapy at the same dosage without a safety plan 
129.32 	when risk factors for serious opioid-induced respiratory depression are present. Failing to 
130.1 	develop a safety plan includes failing to document the risk factor as a risk of opioid-induced 
130.2 	respiratory depression in the patient's health record and failing to document a clear safety 
130.3 	plan in the patient's health record that addresses actions to reduce the risk for serious 
130.4 	opioid-induced respiratory depression. Risk factors for serious opioid-induced respiratory 
130.5 	depression include but are not limited to:
130.6 	(i) an active or symptomatic and untreated substance use disorder;
130.7 	(ii) a serious mental health condition, including symptomatic, untreated mania; 
130.8 	symptomatic, untreated psychosis; and symptomatic, untreated suicidality;
130.9 	(iii) an emergency department visit with a life-threatening opioid complication in the 
130.10 	last 12 months;
130.11 	(iv) a pattern of inconsistent urine toxicology results, excluding the presence of 
130.12 	cannabinoids; however, addressing an inconsistent urine toxicology result must not result 
130.13 	in the overall worsening clinical status of the patient;
130.14 	(v) the concurrent prescribing of long-term benzodiazepine therapy to an individual on 
130.15 	chronic opioid analgesic therapy;
130.16 	(vi) a pulmonary disease with respiratory failure or hypoventilation; and
130.17 	(vii) a failure to select and dose opioids safely for patients with known renal insufficiency; 
130.18 	and
130.19 	(5) failing to participate in the Opioid Prescribing Improvement program for two 
130.20 	consecutive years.

130.21 	Sec. 10. Minnesota Statutes 2022, section 256B.064, subdivision 1a, is amended to read:
130.22 		Subd. 1a.Grounds for sanctions against vendors. (a) The commissioner may impose 
130.23 	sanctions against a vendor of medical care for any of the following: (1) fraud, theft, or abuse 
130.24 	in connection with the provision of medical care to recipients of public assistance; (2) a 
130.25 	pattern of presentment of false or duplicate claims or claims for services not medically 
130.26 	necessary; (3) a pattern of making false statements of material facts for the purpose of 
130.27 	obtaining greater compensation than that to which the vendor is legally entitled; (4) 
130.28 	suspension or termination as a Medicare vendor; (5) refusal to grant the state agency access 
130.29 	during regular business hours to examine all records necessary to disclose the extent of 
130.30 	services provided to program recipients and appropriateness of claims for payment; (6) 
130.31 	failure to repay an overpayment or a fine finally established under this section; (7) failure 
130.32 	to correct errors in the maintenance of health service or financial records for which a fine 
131.1 	was imposed or after issuance of a warning by the commissioner; and (8) any reason for 
131.2 	which a vendor could be excluded from participation in the Medicare program under section 
131.3 	1128, 1128A, or 1866(b)(2) of the Social Security Act.
131.4 	(b) The commissioner may impose sanctions against a pharmacy provider for failure to 
131.5 	respond to a cost of dispensing survey under section 256B.0625, subdivision 13e, paragraph 
131.6 	(h).
131.7 	(c) The commissioner may impose sanctions against a vendor for violations of the 
131.8 	sanction standards defined by the Opioid Prescribing Work Group for opioid prescribing 
131.9 	practices that fall outside community standard thresholds for prescribing.

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

131.11 	Sec. 11. Minnesota Statutes 2022, section 256B.0941, is amended by adding a subdivision 
131.12 	to read:
131.13 		Subd. 5.Start-up and capacity-building grants. (a) Start-up grants to prospective 
131.14 	psychiatric residential treatment  facility sites may be used for:
131.15 	(1) administrative expenses;
131.16 	(2) consulting services;
131.17 	(3) Health Insurance Portability and Accountability Act of 1996 compliance;
131.18 	(4) therapeutic resources including evidence-based, culturally appropriate curriculums  
131.19 	and training programs for staff and clients;
131.20 	(5) allowable physical renovations to the property; and
131.21 	(6) emergency workforce shortage uses, as determined by the commissioner.
131.22 	(b) Start-up and capacity-building grants to prospective and current psychiatric residential 
131.23 	treatment facilities may be used to support providers who treat and accept individuals with 
131.24 	complex support needs, including but not limited to:
131.25 	(1) neurocognitive disorders;
131.26 	(2) co-occurring intellectual developmental disabilities;
131.27 	(3) schizophrenia spectrum disorders;
131.28 	(4) manifested or labeled aggressive behaviors; and
131.29 	(5) manifested sexually inappropriate behaviors.

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

132.1 	Sec. 12. MOBILE RESPONSE AND STABILIZATION SERVICES PILOT.
 132.2 	The commissioner shall establish a pilot to promote access to crisis response services 
132.3 	and reduce psychiatric hospitalizations and out-of-home placement services for children, 
132.4 	youth, and families. The pilot will incorporate a two-pronged approach to provide an 
132.5 	immediate, in-person response within 60 minutes of crisis as well as extended, longer-term 
132.6 	supports for the family unit. The pilot must aim to help families respond to children's 
132.7 	behavioral health crisis while bolstering resiliency and recovery within the family unit. The 
132.8 	commissioner must consult with a qualified expert entity to assist in the formulation of 
132.9 	measurable outcomes and explore and position the state to submit a Medicaid state plan 
132.10 	amendment to scale the model statewide.

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

132.12 	Sec. 13. LOCAL AGENCY SUBSTANCE USE DISORDER ALLOCATION.
 132.13 	The commissioner of human services shall evaluate the ongoing need for local agency 
132.14 	substance use disorder allocations under section 254B.02. The evaluation must include 
132.15 	recommendations on whether local agency allocations should continue, and if so, the 
132.16 	evaluation must recommend what the purpose of the allocations should be and propose an 
132.17 	updated allocation methodology that aligns with the purpose and person-centered outcomes 
132.18 	for people experiencing substance use disorders and behavioral health conditions.  The 
132.19 	commissioner may contract with a vendor to support this evaluation through research and 
132.20 	actuarial analysis.

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

132.22 	ARTICLE 8
132.23 	HEALTH CARE

132.24 	Section 1. Minnesota Statutes 2022, section 62A.045, is amended to read:
132.25 	62A.045 PAYMENTS ON BEHALF OF ENROLLEES IN GOVERNMENT 
132.26 	HEALTH PROGRAMS.
132.27 	(a) As a condition of doing business in Minnesota or providing coverage to residents of 
132.28 	Minnesota covered by this section, each health insurer shall comply with the requirements 
132.29 	of for health insurers under the federal Deficit Reduction Act of 2005, Public Law 109-171
132.30 	and the federal Consolidated Appropriations Act of 2022, Public Law 117-103, including 
132.31 	any federal regulations adopted under that act those acts, to the extent that it imposes they 
132.32 	impose a requirement that applies in this state and that is not also required by the laws of 
133.1 	this state. This section does not require compliance with any provision of the federal act
133.2 	acts prior to the effective date dates provided for that provision those provisions  in the 
133.3 	federal act acts. The commissioner shall enforce this section.
133.4 	For the purpose of this section, "health insurer" includes self-insured plans, group health 
133.5 	plans (as defined in section 607(1) of the Employee Retirement Income Security Act of 
133.6 	1974), service benefit plans, managed care organizations, pharmacy benefit managers, or 
133.7 	other parties that are by contract legally responsible to pay a claim for a health-care item 
133.8 	or service for an individual receiving benefits under paragraph (b).
133.9 	(b) No plan offered by a health insurer issued or renewed to provide coverage to a 
133.10 	Minnesota resident shall contain any provision denying or reducing benefits because services 
133.11 	are rendered to a person who is eligible for or receiving medical benefits pursuant to title 
133.12 	XIX of the Social Security Act (Medicaid) in this or any other state; chapter 256 or 256B; 
133.13 	or services pursuant to section 252.27; 256L.01 to 256L.10; 260B.331, subdivision 2; 
133.14 	260C.331, subdivision 2; or 393.07, subdivision 1 or 2. No health insurer providing benefits 
133.15 	under plans covered by this section shall use eligibility for medical programs named in this 
133.16 	section as an underwriting guideline or reason for nonacceptance of the risk.
133.17 	(c) If payment for covered expenses has been made under state medical programs for 
133.18 	health care items or services provided to an individual, and a third party has a legal liability 
133.19 	to make payments, the rights of payment and appeal of an adverse coverage decision for 
133.20 	the individual, or in the case of a child their responsible relative or caretaker, will be 
133.21 	subrogated to the state agency. The state agency may assert its rights under this section 
133.22 	within three years of the date the service was rendered. For purposes of this section, "state 
133.23 	agency" includes prepaid health plans under contract with the commissioner according to 
133.24 	sections 256B.69 and 256L.12; children's mental health collaboratives under section 245.493; 
133.25 	demonstration projects for persons with disabilities under section 256B.77; nursing homes 
133.26 	under the alternative payment demonstration project under section 256B.434; and 
133.27 	county-based purchasing entities under section 256B.692.
133.28 	(d) Notwithstanding any law to the contrary, when a person covered by a plan offered 
133.29 	by a health insurer receives medical benefits according to any statute listed in this section, 
133.30 	payment for covered services or notice of denial for services billed by the provider must be 
133.31 	issued directly to the provider. If a person was receiving medical benefits through the 
133.32 	Department of Human Services at the time a service was provided, the provider must indicate 
133.33 	this benefit coverage on any claim forms submitted by the provider to the health insurer for 
133.34 	those services. If the commissioner of human services notifies the health insurer that the 
133.35 	commissioner has made payments to the provider, payment for benefits or notices of denials 
134.1 	issued by the health insurer must be issued directly to the commissioner. Submission by the 
134.2 	department to the health insurer of the claim on a Department of Human Services claim 
134.3 	form is proper notice and shall be considered proof of payment of the claim to the provider 
134.4 	and supersedes any contract requirements of the health insurer relating to the form of 
134.5 	submission. Liability to the insured for coverage is satisfied to the extent that payments for 
134.6 	those benefits are made by the health insurer to the provider or the commissioner as required 
134.7 	by this section.
134.8 	(e) When a state agency has acquired the rights of an individual eligible for medical 
134.9 	programs named in this section and has health benefits coverage through a health insurer, 
134.10 	the health insurer shall not impose requirements that are different from requirements 
134.11 	applicable to an agent or assignee of any other individual covered.
134.12 	(f) A health insurer must process a clean claim made by a state agency for covered 
134.13 	expenses paid under state medical programs within 90 business days of the claim's 
134.14 	submission. A health insurer must process all other claims made by a state agency for 
134.15 	covered expenses paid under a state medical program within the timeline set forth in Code 
134.16 	of Federal Regulations, title 42, section 447.45(d)(4).
134.17 	(g) A health insurer may request a refund of a claim paid in error to the Department of 
134.18 	Human Services within two years of the date the payment was made to the department. A 
134.19 	request for a refund shall not be honored by the department if the health insurer makes the 
134.20 	request after the time period has lapsed.

134.21 	Sec. 2. Minnesota Statutes 2022, section 62A.673, subdivision 2, is amended to read:
134.22 		Subd. 2.Definitions. (a) For purposes of this section, the terms defined in this subdivision 
134.23 	have the meanings given.
134.24 	(b) "Distant site" means a site at which a health care provider is located while providing 
134.25 	health care services or consultations by means of telehealth.
134.26 	(c) "Health care provider" means a health care professional who is licensed or registered 
134.27 	by the state to perform health care services within the provider's scope of practice and in 
134.28 	accordance with state law. A health care provider includes a mental health professional 
134.29 	under section 245I.04, subdivision 2; a mental health practitioner under section 245I.04, 
134.30 	subdivision 4; a clinical trainee under section 245I.04, subdivision 6; a treatment coordinator 
134.31 	under section 245G.11, subdivision 7; an alcohol and drug counselor under section 245G.11, 
134.32 	subdivision 5; and a recovery peer under section 245G.11, subdivision 8.
134.33 	(d) "Health carrier" has the meaning given in section 62A.011, subdivision 2.
135.1 	(e) "Health plan" has the meaning given in section 62A.011, subdivision 3. Health plan 
135.2 	includes dental plans as defined in section 62Q.76, subdivision 3, but does not include dental 
135.3 	plans that provide indemnity-based benefits, regardless of expenses incurred, and are designed 
135.4 	to pay benefits directly to the policy holder.
135.5 	(f) "Originating site" means a site at which a patient is located at the time health care 
135.6 	services are provided to the patient by means of telehealth. For purposes of store-and-forward 
135.7 	technology, the originating site also means the location at which a health care provider 
135.8 	transfers or transmits information to the distant site.
135.9 	(g) "Store-and-forward technology" means the asynchronous electronic transfer or 
135.10 	transmission of a patient's medical information or data from an originating site to a distant 
135.11 	site for the purposes of diagnostic and therapeutic assistance in the care of a patient.
135.12 	(h) "Telehealth" means the delivery of health care services or consultations through the 
135.13 	use of real time two-way interactive audio and visual communications to provide or support 
135.14 	health care delivery and facilitate the assessment, diagnosis, consultation, treatment, 
135.15 	education, and care management of a patient's health care. Telehealth includes the application 
135.16 	of secure video conferencing, store-and-forward technology, and synchronous interactions 
135.17 	between a patient located at an originating site and a health care provider located at a distant 
135.18 	site. Until July 1, 2023 2025, telehealth also includes audio-only communication between 
135.19 	a health care provider and a patient in accordance with subdivision 6, paragraph (b). 
135.20 	Telehealth does not include communication between health care providers that consists 
135.21 	solely of a telephone conversation, email, or facsimile transmission. Telehealth does not 
135.22 	include communication between a health care provider and a patient that consists solely of 
135.23 	an email or facsimile transmission. Telehealth does not include telemonitoring services as 
135.24 	defined in paragraph (i).
135.25 	(i) "Telemonitoring services" means the remote monitoring of clinical data related to 
135.26 	the enrollee's vital signs or biometric data by a monitoring device or equipment that transmits 
135.27 	the data electronically to a health care provider for analysis. Telemonitoring is intended to 
135.28 	collect an enrollee's health-related data for the purpose of assisting a health care provider 
135.29 	in assessing and monitoring the enrollee's medical condition or status.

135.30 	Sec. 3. Minnesota Statutes 2022, section 256.0471, subdivision 1, is amended to read:
135.31 		Subdivision 1.Qualifying overpayment. Any overpayment for assistance granted under 
135.32 	chapter 119B, the MFIP program formerly codified under sections 256.031 to 256.0361, 
135.33 	and the AFDC program formerly codified under sections 256.72 to 256.871; section 256.045, 
135.34 	subdivision 10; chapters 256B for state-funded medical assistance, 256D, 256I, 256J, 256K, 
136.1 	and 256L for state-funded MinnesotaCare; and the Supplemental Nutrition Assistance 
136.2 	Program (SNAP), except agency error claims, become a judgment by operation of law 90 
136.3 	days after the notice of overpayment is personally served upon the recipient in a manner 
136.4 	that is sufficient under rule 4.03(a) of the Rules of Civil Procedure for district courts, or by 
136.5 	certified mail, return receipt requested. This judgment shall be entitled to full faith and credit 
136.6 	in this and any other state.

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

136.8 	Sec. 4. Minnesota Statutes 2022, section 256.969, subdivision 2b, is amended to read:
136.9 		Subd. 2b.Hospital payment rates. (a) For discharges occurring on or after November 
136.10 	1, 2014, hospital inpatient services for hospitals located in Minnesota shall be paid according 
136.11 	to the following:
136.12 	(1) critical access hospitals as defined by Medicare shall be paid using a cost-based 
136.13 	methodology;
136.14 	(2) long-term hospitals as defined by Medicare shall be paid on a per diem methodology 
136.15 	under subdivision 25;
136.16 	(3) rehabilitation hospitals or units of hospitals that are recognized as rehabilitation 
136.17 	distinct parts as defined by Medicare shall be paid according to the methodology under 
136.18 	subdivision 12; and
136.19 	(4) all other hospitals shall be paid on a diagnosis-related group (DRG) methodology.
136.20 	(b) For the period beginning January 1, 2011, through October 31, 2014, rates shall not 
136.21 	be rebased, except that a Minnesota long-term hospital shall be rebased effective January 
136.22 	1, 2011, based on its most recent Medicare cost report ending on or before September 1, 
136.23 	2008, with the provisions under subdivisions 9 and 23, based on the rates in effect on 
136.24 	December 31, 2010. For rate setting periods after November 1, 2014, in which the base 
136.25 	years are updated, a Minnesota long-term hospital's base year shall remain within the same 
136.26 	period as other hospitals.
136.27 	(c) Effective for discharges occurring on and after November 1, 2014, payment rates 
136.28 	for hospital inpatient services provided by hospitals located in Minnesota or the local trade 
136.29 	area, except for the hospitals paid under the methodologies described in paragraph (a), 
136.30 	clauses (2) and (3), shall be rebased, incorporating cost and payment methodologies in a 
136.31 	manner similar to Medicare. The base year or years for the rates effective November 1, 
136.32 	2014, shall be calendar year 2012. The rebasing under this paragraph shall be budget neutral, 
136.33 	ensuring that the total aggregate payments under the rebased system are equal to the total 
137.1 	aggregate payments that were made for the same number and types of services in the base 
137.2 	year. Separate budget neutrality calculations shall be determined for payments made to 
137.3 	critical access hospitals and payments made to hospitals paid under the DRG system. Only 
137.4 	the rate increases or decreases under subdivision 3a or 3c that applied to the hospitals being 
137.5 	rebased during the entire base period shall be incorporated into the budget neutrality 
137.6 	calculation.
137.7 	(d) For discharges occurring on or after November 1, 2014, through the next rebasing 
137.8 	that occurs, the rebased rates under paragraph (c) that apply to hospitals under paragraph 
137.9 	(a), clause (4), shall include adjustments to the projected rates that result in no greater than 
137.10 	a five percent increase or decrease from the base year payments for any hospital. Any 
137.11 	adjustments to the rates made by the commissioner under this paragraph and paragraph (e) 
137.12 	shall maintain budget neutrality as described in paragraph (c).
137.13 	(e) For discharges occurring on or after November 1, 2014, the commissioner may make 
137.14 	additional adjustments to the rebased rates, and when evaluating whether additional 
137.15 	adjustments should be made, the commissioner shall consider the impact of the rates on the 
137.16 	following:
137.17 	(1) pediatric services;
137.18 	(2) behavioral health services;
137.19 	(3) trauma services as defined by the National Uniform Billing Committee;
137.20 	(4) transplant services;
137.21 	(5) obstetric services, newborn services, and behavioral health services provided by 
137.22 	hospitals outside the seven-county metropolitan area;
137.23 	(6) outlier admissions;
137.24 	(7) low-volume providers; and
137.25 	(8) services provided by small rural hospitals that are not critical access hospitals.
137.26 	(f) Hospital payment rates established under paragraph (c) must incorporate the following:
137.27 	(1) for hospitals paid under the DRG methodology, the base year payment rate per 
137.28 	admission is standardized by the applicable Medicare wage index and adjusted by the 
137.29 	hospital's disproportionate population adjustment;
137.30 	(2) for critical access hospitals, payment rates for discharges between November 1, 2014, 
137.31 	and June 30, 2015, shall be set to the same rate of payment that applied for discharges on 
137.32 	October 31, 2014;
138.1 	(3) the cost and charge data used to establish hospital payment rates must only reflect 
138.2 	inpatient services covered by medical assistance; and
138.3 	(4) in determining hospital payment rates for discharges occurring on or after the rate 
138.4 	year beginning January 1, 2011, through December 31, 2012, the hospital payment rate per 
138.5 	discharge shall be based on the cost-finding methods and allowable costs of the Medicare 
138.6 	program in effect during the base year or years. In determining hospital payment rates for 
138.7 	discharges in subsequent base years, the per discharge rates shall be based on the cost-finding 
138.8 	methods and allowable costs of the Medicare program in effect during the base year or 
138.9 	years.
138.10 	(g) The commissioner shall validate the rates effective November 1, 2014, by applying 
138.11 	the rates established under paragraph (c), and any adjustments made to the rates under 
138.12 	paragraph (d) or (e), to hospital claims paid in calendar year 2013 to determine whether the 
138.13 	total aggregate payments for the same number and types of services under the rebased rates 
138.14 	are equal to the total aggregate payments made during calendar year 2013.
138.15 	(h) Effective for discharges occurring on or after July 1, 2017, and every two years 
138.16 	thereafter, payment rates under this section shall be rebased to reflect only those changes 
138.17 	in hospital costs between the existing base year or years and the next base year or years. In 
138.18 	any year that inpatient claims volume falls below the threshold required to ensure a 
138.19 	statistically valid sample of claims, the commissioner may combine claims data from two 
138.20 	consecutive years to serve as the base year. Years in which inpatient claims volume is 
138.21 	reduced or altered due to a pandemic or other public health emergency shall not be used as 
138.22 	a base year or part of a base year if the base year includes more than one year. Changes in 
138.23 	costs between base years shall be measured using the lower of the hospital cost index defined 
138.24 	in subdivision 1, paragraph (a), or the percentage change in the case mix adjusted cost per 
138.25 	claim. The commissioner shall establish the base year for each rebasing period considering 
138.26 	the most recent year or years for which filed Medicare cost reports are available, except 
138.27 	that the base years for the rebasing effective July 1, 2023, are calendar years 2018 and 2019. 
138.28 	The estimated change in the average payment per hospital discharge resulting from a 
138.29 	scheduled rebasing must be calculated and made available to the legislature by January 15 
138.30 	of each year in which rebasing is scheduled to occur, and must include by hospital the 
138.31 	differential in payment rates compared to the individual hospital's costs.
138.32 	(i) Effective for discharges occurring on or after July 1, 2015, inpatient payment rates 
138.33 	for critical access hospitals located in Minnesota or the local trade area shall be determined 
138.34 	using a new cost-based methodology. The commissioner shall establish within the 
138.35 	methodology tiers of payment designed to promote efficiency and cost-effectiveness. 
139.1 	Payment rates for hospitals under this paragraph shall be set at a level that does not exceed 
139.2 	the total cost for critical access hospitals as reflected in base year cost reports. Until the 
139.3 	next rebasing that occurs, the new methodology shall result in no greater than a five percent 
139.4 	decrease from the base year payments for any hospital, except a hospital that had payments 
139.5 	that were greater than 100 percent of the hospital's costs in the base year shall have their 
139.6 	rate set equal to 100 percent of costs in the base year. The rates paid for discharges on and 
139.7 	after July 1, 2016, covered under this paragraph shall be increased by the inflation factor 
139.8 	in subdivision 1, paragraph (a). The new cost-based rate shall be the final rate and shall not 
139.9 	be settled to actual incurred costs. Hospitals shall be assigned a payment tier based on the 
139.10 	following criteria:
139.11 	(1) hospitals that had payments at or below 80 percent of their costs in the base year 
139.12 	shall have a rate set that equals 85 percent of their base year costs;
139.13 	(2) hospitals that had payments that were above 80 percent, up to and including 90 
139.14 	percent of their costs in the base year shall have a rate set that equals 95 percent of their 
139.15 	base year costs; and
139.16 	(3) hospitals that had payments that were above 90 percent of their costs in the base year 
139.17 	shall have a rate set that equals 100 percent of their base year costs.
139.18 	(j) The commissioner may refine the payment tiers and criteria for critical access hospitals 
139.19 	to coincide with the next rebasing under paragraph (h). The factors used to develop the new 
139.20 	methodology may include, but are not limited to:
139.21 	(1) the ratio between the hospital's costs for treating medical assistance patients and the 
139.22 	hospital's charges to the medical assistance program;
139.23 	(2) the ratio between the hospital's costs for treating medical assistance patients and the 
139.24 	hospital's payments received from the medical assistance program for the care of medical 
139.25 	assistance patients;
139.26 	(3) the ratio between the hospital's charges to the medical assistance program and the 
139.27 	hospital's payments received from the medical assistance program for the care of medical 
139.28 	assistance patients;
139.29 	(4) the statewide average increases in the ratios identified in clauses (1), (2), and (3);
139.30 	(5) the proportion of that hospital's costs that are administrative and trends in 
139.31 	administrative costs; and
139.32 	(6) geographic location.

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

140.2 	Sec. 5. Minnesota Statutes 2022, section 256.969, subdivision 9, is amended to read:
140.3 		Subd. 9.Disproportionate numbers of low-income patients served. (a) For admissions 
140.4 	occurring on or after July 1, 1993, the medical assistance disproportionate population 
140.5 	adjustment shall comply with federal law and shall be paid to a hospital, excluding regional 
140.6 	treatment centers and facilities of the federal Indian Health Service, with a medical assistance 
140.7 	inpatient utilization rate in excess of the arithmetic mean. The adjustment must be determined 
140.8 	as follows:
140.9 	(1) for a hospital with a medical assistance inpatient utilization rate above the arithmetic 
140.10 	mean for all hospitals excluding regional treatment centers and facilities of the federal Indian 
140.11 	Health Service but less than or equal to one standard deviation above the mean, the 
140.12 	adjustment must be determined by multiplying the total of the operating and property 
140.13 	payment rates by the difference between the hospital's actual medical assistance inpatient 
140.14 	utilization rate and the arithmetic mean for all hospitals excluding regional treatment centers 
140.15 	and facilities of the federal Indian Health Service; and
140.16 	(2) for a hospital with a medical assistance inpatient utilization rate above one standard 
140.17 	deviation above the mean, the adjustment must be determined by multiplying the adjustment 
140.18 	that would be determined under clause (1) for that hospital by 1.1. The commissioner shall 
140.19 	report annually on the number of hospitals likely to receive the adjustment authorized by 
140.20 	this paragraph. The commissioner shall specifically report on the adjustments received by 
140.21 	public hospitals and public hospital corporations located in cities of the first class.
140.22 	(b) Certified public expenditures made by Hennepin County Medical Center shall be 
140.23 	considered Medicaid disproportionate share hospital payments. Hennepin County and 
140.24 	Hennepin County Medical Center shall report by June 15, 2007, on payments made beginning 
140.25 	July 1, 2005, or another date specified by the commissioner, that may qualify for 
140.26 	reimbursement under federal law. Based on these reports, the commissioner shall apply for 
140.27 	federal matching funds.
140.28 	(c) Upon federal approval of the related state plan amendment, paragraph (b) is effective 
140.29 	retroactively from July 1, 2005, or the earliest effective date approved by the Centers for 
140.30 	Medicare and Medicaid Services.
140.31 	(d) Effective July 1, 2015, disproportionate share hospital (DSH) payments shall be paid 
140.32 	in accordance with a new methodology using 2012 as the base year. Annual payments made 
140.33 	under this paragraph shall equal the total amount of payments made for 2012. A licensed 
141.1 	children's hospital shall receive only a single DSH factor for children's hospitals. Other 
141.2 	DSH factors may be combined to arrive at a single factor for each hospital that is eligible 
141.3 	for DSH payments. The new methodology shall make payments only to hospitals located 
141.4 	in Minnesota and include the following factors:
141.5 	(1) a licensed children's hospital with at least 1,000 fee-for-service discharges in the 
141.6 	base year shall receive a factor of 0.868. A licensed children's hospital with less than 1,000 
141.7 	fee-for-service discharges in the base year shall receive a factor of 0.7880;
141.8 	(2) a hospital that has in effect for the initial rate year a contract with the commissioner 
141.9 	to provide extended psychiatric inpatient services under section 256.9693 shall receive a 
141.10 	factor of 0.0160;
141.11 	(3) a hospital that has received medical assistance payment for at least 20 transplant 
141.12 	services in the base year shall receive a factor of 0.0435;
141.13 	(4) a hospital that has a medical assistance utilization rate in the base year between 20 
141.14 	percent up to one standard deviation above the statewide mean utilization rate shall receive 
141.15 	a factor of 0.0468;
141.16 	(5) a hospital that has a medical assistance utilization rate in the base year that is at least 
141.17 	one standard deviation above the statewide mean utilization rate but is less than two and 
141.18 	one-half standard deviations above the mean shall receive a factor of 0.2300; and
141.19 	(6) a hospital that is a level one trauma center and that has a medical assistance utilization 
141.20 	rate in the base year that is at least two and one-half one-quarter standard deviations above 
141.21 	the statewide mean utilization rate shall receive a factor of 0.3711.
141.22 	(e) For the purposes of determining eligibility for the disproportionate share hospital 
141.23 	factors in paragraph (d), clauses (1) to (6), the medical assistance utilization rate and 
141.24 	discharge thresholds shall be measured using only one year when a two-year base period 
141.25 	is used.
141.26 	(f) Any payments or portion of payments made to a hospital under this subdivision that 
141.27 	are subsequently returned to the commissioner because the payments are found to exceed 
141.28 	the hospital-specific DSH limit for that hospital shall be redistributed, proportionate to the 
141.29 	number of fee-for-service discharges, to other DSH-eligible non-children's hospitals that 
141.30 	have a medical assistance utilization rate that is at least one standard deviation above the 
141.31 	mean.
141.32 	(g) An additional payment adjustment shall be established by the commissioner under 
141.33 	this subdivision for a hospital that provides high levels of administering high-cost drugs to 
142.1 	enrollees in fee-for-service medical assistance. The commissioner shall consider factors 
142.2 	including fee-for-service medical assistance utilization rates and payments made for drugs 
142.3 	purchased through the 340B drug purchasing program and administered to fee-for-service 
142.4 	enrollees. If any part of this adjustment exceeds a hospital's hospital-specific disproportionate 
142.5 	share hospital limit, the commissioner shall make a payment to the hospital that equals the 
142.6 	nonfederal share of the amount that exceeds the limit. The total nonfederal share of the 
142.7 	amount of the payment adjustment under this paragraph shall not exceed $1,500,000.

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

142.9 	Sec. 6. Minnesota Statutes 2022, section 256.969, subdivision 25, is amended to read:
142.10 		Subd. 25.Long-term hospital rates. (a) Long-term hospitals shall be paid on a per diem 
142.11 	basis.
142.12 	(b) For admissions occurring on or after April 1, 1995, a long-term hospital as designated 
142.13 	by Medicare that does not have admissions in the base year shall have inpatient rates 
142.14 	established at the average of other hospitals with the same designation. For subsequent 
142.15 	rate-setting periods in which base years are updated, the hospital's base year shall be the 
142.16 	first Medicare cost report filed with the long-term hospital designation and shall remain in 
142.17 	effect until it falls within the same period as other hospitals.
142.18 	(c) For admissions occurring on or after July 1, 2023, long-term hospitals must be paid 
142.19 	the higher of a per diem amount computed using the methodology described in subdivision 
142.20 	2b, paragraph (i), or the per diem rate as of July 1, 2021.

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

142.22 	Sec. 7. Minnesota Statutes 2022, section 256B.055, subdivision 17, is amended to read:
142.23 		Subd. 17.Adults who were in foster care at the age of 18. (a) Medical assistance may 
142.24 	be paid for a person under 26 years of age who was in foster care under the commissioner's 
142.25 	responsibility on the date of attaining 18 years of age, and who was enrolled in medical 
142.26 	assistance under the state plan or a waiver of the plan while in foster care, in accordance 
142.27 	with section 2004 of the Affordable Care Act.
142.28 	(b) Beginning July 1, 2023, medical assistance may be paid for a person under 26 years 
142.29 	of age who was in foster care on the date of attaining 18 years of age and enrolled in another 
142.30 	state's Medicaid program while in foster care in accordance with the Substance Use-Disorder 
142.31 	Prevention that Promotes Opioid Recovery and Treatment for Patients and Communities 
142.32 	Act of 2018. Public Law 115-271, section 1002.

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

143.2 	Sec. 8. Minnesota Statutes 2022, section 256B.056, subdivision 7, is amended to read:
143.3 		Subd. 7.Period of eligibility. (a) Eligibility is available for the month of application 
143.4 	and for three months prior to application if the person was eligible in those prior months. 
143.5 	A redetermination of eligibility must occur every 12 months.
143.6 	(b) Notwithstanding any other law to the contrary:
143.7 	(1) a child under 21 years of age who is determined eligible for medical assistance must 
143.8 	remain eligible for a period of 12 months; and
143.9 	(2) a child under six years of age who is determined eligible for medical assistance must 
143.10 	remain eligible through the month in which the child reaches six years of age.
143.11 	(c) A child's eligibility under paragraph (b) may be terminated earlier if:
143.12 	(1) the child attains the maximum age;
143.13 	(2) the child or the child's representative requests voluntary termination of eligibility;
143.14 	(3) the child ceases to be a resident of the state;
143.15 	(4) the child dies; or
143.16 	(5) the agency determines eligibility was erroneously granted at the most recent eligibility 
143.17 	determination due to agency error or fraud, abuse, or perjury attributed to the child or the 
143.18 	child's representative.
143.19 	(b) (d) For a person eligible for an insurance affordability program as defined in section 
143.20 	256B.02, subdivision 19, who reports a change that makes the person eligible for medical 
143.21 	assistance, eligibility is available for the month the change was reported and for three months 
143.22 	prior to the month the change was reported, if the person was eligible in those prior months.

143.23 	EFFECTIVE DATE. This section is effective July 1, 2024, or upon federal approval, 
143.24 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
143.25 	when federal approval is obtained.

143.26 	Sec. 9. Minnesota Statutes 2022, section 256B.0625, subdivision 9, is amended to read:
143.27 		Subd. 9.Dental services. (a) Medical assistance covers medically necessary dental 
143.28 	services.
143.29 	(b) Medical assistance dental coverage for nonpregnant adults is limited to the following 
143.30 	services:
144.1 	(1) comprehensive exams, limited to once every five years;
144.2 	(2) periodic exams, limited to one per year;
144.3 	(3) limited exams;
144.4 	(4) bitewing x-rays, limited to one per year;
144.5 	(5) periapical x-rays;
144.6 	(6) panoramic x-rays, limited to one every five years except (1) when medically necessary 
144.7 	for the diagnosis and follow-up of oral and maxillofacial pathology and trauma or (2) once 
144.8 	every two years for patients who cannot cooperate for intraoral film due to a developmental 
144.9 	disability or medical condition that does not allow for intraoral film placement;
144.10 	(7) prophylaxis, limited to one per year;
144.11 	(8) application of fluoride varnish, limited to one per year;
144.12 	(9) posterior fillings, all at the amalgam rate;
144.13 	(10) anterior fillings;
144.14 	(11) endodontics, limited to root canals on the anterior and premolars only;
144.15 	(12) removable prostheses, each dental arch limited to one every six years;
144.16 	(13) oral surgery, limited to extractions, biopsies, and incision and drainage of abscesses;
144.17 	(14) palliative treatment and sedative fillings for relief of pain;
144.18 	(15) full-mouth debridement, limited to one every five years; and
144.19 	(16) nonsurgical treatment for periodontal disease, including scaling and root planing 
144.20 	once every two years for each quadrant, and routine periodontal maintenance procedures.
144.21 	(c) In addition to the services specified in paragraph (b), medical assistance covers the 
144.22 	following services for adults, if provided in an outpatient hospital setting or freestanding 
144.23 	ambulatory surgical center as part of outpatient dental surgery:
144.24 	(1) periodontics, limited to periodontal scaling and root planing once every two years;
144.25 	(2) general anesthesia; and
144.26 	(3) full-mouth survey once every five years.
144.27 	(d) Medical assistance covers medically necessary dental services for children and 
144.28 	pregnant women. (b) The following guidelines apply to dental services:
144.29 	(1) posterior fillings are paid at the amalgam rate;
145.1 	(2) application of sealants are covered once every five years per permanent molar for 
145.2 	children only;
145.3 	(3) application of fluoride varnish is covered once every six months; and
145.4 	(4) orthodontia is eligible for coverage for children only.
145.5 	(e) (c) In addition to the services specified in paragraphs paragraph (b) and (c), medical 
145.6 	assistance covers the following services for adults:
145.7 	(1) house calls or extended care facility calls for on-site delivery of covered services;
145.8 	(2) behavioral management when additional staff time is required to accommodate 
145.9 	behavioral challenges and sedation is not used;
145.10 	(3) oral or IV sedation, if the covered dental service cannot be performed safely without 
145.11 	it or would otherwise require the service to be performed under general anesthesia in a 
145.12 	hospital or surgical center; and
145.13 	(4) prophylaxis, in accordance with an appropriate individualized treatment plan, but 
145.14 	no more than four times per year.
145.15 	(f) (d) The commissioner shall not require prior authorization for the services included 
145.16 	in paragraph (e) (c), clauses (1) to (3), and shall prohibit managed care and county-based 
145.17 	purchasing plans from requiring prior authorization for the services included in paragraph 
145.18 	(e) (c), clauses (1) to (3), when provided under sections 256B.69, 256B.692, and 256L.12.

145.19 	EFFECTIVE DATE. This section is effective January 1, 2024, or upon federal approval, 
145.20 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
145.21 	when federal approval is obtained.

145.22 	Sec. 10. Minnesota Statutes 2022, section 256B.0625, subdivision 13c, is amended to 
145.23 	read:
145.24 		Subd. 13c.Formulary Committee. The commissioner, after receiving recommendations 
145.25 	from professional medical associations and professional pharmacy associations, and consumer 
145.26 	groups shall designate a Formulary Committee to carry out duties as described in subdivisions 
145.27 	13 to 13g. The Formulary Committee shall be comprised of at least four licensed physicians 
145.28 	actively engaged in the practice of medicine in Minnesota, one of whom must be actively 
145.29 	engaged in the treatment of persons with mental illness; at least three licensed pharmacists 
145.30 	actively engaged in the practice of pharmacy in Minnesota; and one two consumer 
145.31 	representative representatives, one of which is a current or former medical assistance enrollee 
145.32 	or the parent or guardian of a current or former medical assistance enrollee; the remainder 
146.1 	to be made up of health care professionals who are licensed in their field and have recognized 
146.2 	knowledge in the clinically appropriate prescribing, dispensing, and monitoring of covered 
146.3 	outpatient drugs. Members of the Formulary Committee shall not be employed by the 
146.4 	Department of Human Services, but the committee shall be staffed by an employee of the 
146.5 	department who shall serve as an ex officio, nonvoting member of the committee. The 
146.6 	department's medical director shall also serve as an ex officio, nonvoting member for the 
146.7 	committee. Committee members shall serve three-year terms and may be reappointed by 
146.8 	the commissioner. The Formulary Committee shall meet at least twice per year. The 
146.9 	commissioner may require more frequent Formulary Committee meetings as needed. An 
146.10 	honorarium of $100 per meeting and reimbursement for mileage shall be paid to each 
146.11 	committee member in attendance. Notwithstanding section 15.059, subdivision 6, the 
146.12 	Formulary Committee expires June 30, 2023 does not expire.

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

146.14 	Sec. 11. Minnesota Statutes 2022, section 256B.0625, subdivision 13e, is amended to 
146.15 	read:
146.16 		Subd. 13e.Payment rates. (a) The basis for determining the amount of payment shall 
146.17 	be the lower of the ingredient costs of the drugs plus the professional dispensing fee; or the 
146.18 	usual and customary price charged to the public. The usual and customary price means the 
146.19 	lowest price charged by the provider to a patient who pays for the prescription by cash, 
146.20 	check, or charge account and includes prices the pharmacy charges to a patient enrolled in 
146.21 	a prescription savings club or prescription discount club administered by the pharmacy or 
146.22 	pharmacy chain. The amount of payment basis must be reduced to reflect all discount 
146.23 	amounts applied to the charge by any third-party provider/insurer agreement or contract for 
146.24 	submitted charges to medical assistance programs. The net submitted charge may not be 
146.25 	greater than the patient liability for the service. The professional dispensing fee shall be 
146.26 	$10.77 for prescriptions filled with legend drugs meeting the definition of "covered outpatient 
146.27 	drugs" according to United States Code, title 42, section 1396r-8(k)(2). The dispensing fee 
146.28 	for intravenous solutions that must be compounded by the pharmacist shall be $10.77 per 
146.29 	claim. The professional dispensing fee for prescriptions filled with over-the-counter drugs 
146.30 	meeting the definition of covered outpatient drugs shall be $10.77 for dispensed quantities 
146.31 	equal to or greater than the number of units contained in the manufacturer's original package. 
146.32 	The professional dispensing fee shall be prorated based on the percentage of the package 
146.33 	dispensed when the pharmacy dispenses a quantity less than the number of units contained 
146.34 	in the manufacturer's original package. The pharmacy dispensing fee for prescribed 
146.35 	over-the-counter drugs not meeting the definition of covered outpatient drugs shall be $3.65 
147.1 	for quantities equal to or greater than the number of units contained in the manufacturer's 
147.2 	original package and shall be prorated based on the percentage of the package dispensed 
147.3 	when the pharmacy dispenses a quantity less than the number of units contained in the 
147.4 	manufacturer's original package. The National Average Drug Acquisition Cost (NADAC) 
147.5 	shall be used to determine the ingredient cost of a drug. For drugs for which a NADAC is 
147.6 	not reported, the commissioner shall estimate the ingredient cost at the wholesale acquisition 
147.7 	cost minus two percent. The ingredient cost of a drug for a provider participating in the 
147.8 	federal 340B Drug Pricing Program shall be either the 340B Drug Pricing Program ceiling 
147.9 	price established by the Health Resources and Services Administration or NADAC, 
147.10 	whichever is lower. Wholesale acquisition cost is defined as the manufacturer's list price 
147.11 	for a drug or biological to wholesalers or direct purchasers in the United States, not including 
147.12 	prompt pay or other discounts, rebates, or reductions in price, for the most recent month for 
147.13 	which information is available, as reported in wholesale price guides or other publications 
147.14 	of drug or biological pricing data. The maximum allowable cost of a multisource drug may 
147.15 	be set by the commissioner and it shall be comparable to the actual acquisition cost of the 
147.16 	drug product and no higher than the NADAC of the generic product. Establishment of the 
147.17 	amount of payment for drugs shall not be subject to the requirements of the Administrative 
147.18 	Procedure Act.
147.19 	(b) Pharmacies dispensing prescriptions to residents of long-term care facilities using 
147.20 	an automated drug distribution system meeting the requirements of section 151.58, or a 
147.21 	packaging system meeting the packaging standards set forth in Minnesota Rules, part 
147.22 	6800.2700, that govern the return of unused drugs to the pharmacy for reuse, may employ 
147.23 	retrospective billing for prescription drugs dispensed to long-term care facility residents. A 
147.24 	retrospectively billing pharmacy must submit a claim only for the quantity of medication 
147.25 	used by the enrolled recipient during the defined billing period. A retrospectively billing 
147.26 	pharmacy must use a billing period not less than one calendar month or 30 days.
147.27 	(c) A pharmacy provider using packaging that meets the standards set forth in Minnesota 
147.28 	Rules, part 6800.2700, is required to credit the department for the actual acquisition cost 
147.29 	of all unused drugs that are eligible for reuse, unless the pharmacy is using retrospective 
147.30 	billing. The commissioner may permit the drug clozapine to be dispensed in a quantity that 
147.31 	is less than a 30-day supply.
147.32 	(d) If a pharmacy dispenses a multisource drug, the ingredient cost shall be the NADAC 
147.33 	of the generic product or the maximum allowable cost established by the commissioner 
147.34 	unless prior authorization for the brand name product has been granted according to the 
147.35 	criteria established by the Drug Formulary Committee as required by subdivision 13f, 
148.1 	paragraph (a), and the prescriber has indicated "dispense as written" on the prescription in 
148.2 	a manner consistent with section 151.21, subdivision 2.
148.3 	(e) The basis for determining the amount of payment for drugs administered in an 
148.4 	outpatient setting shall be the lower of the usual and customary cost submitted by the 
148.5 	provider, 106 percent of the average sales price as determined by the United States 
148.6 	Department of Health and Human Services pursuant to title XVIII, section 1847a of the 
148.7 	federal Social Security Act, the specialty pharmacy rate, or the maximum allowable cost 
148.8 	set by the commissioner. If average sales price is unavailable, the amount of payment must 
148.9 	be lower of the usual and customary cost submitted by the provider, the wholesale acquisition 
148.10 	cost, the specialty pharmacy rate, or the maximum allowable cost set by the commissioner. 
148.11 	The commissioner shall discount the payment rate for drugs obtained through the federal 
148.12 	340B Drug Pricing Program by 28.6 percent. The payment for drugs administered in an 
148.13 	outpatient setting shall be made to the administering facility or practitioner. A retail or 
148.14 	specialty pharmacy dispensing a drug for administration in an outpatient setting is not 
148.15 	eligible for direct reimbursement.
148.16 	(f) The commissioner may establish maximum allowable cost rates for specialty pharmacy 
148.17 	products that are lower than the ingredient cost formulas specified in paragraph (a). The 
148.18 	commissioner may require individuals enrolled in the health care programs administered 
148.19 	by the department to obtain specialty pharmacy products from providers with whom the 
148.20 	commissioner has negotiated lower reimbursement rates. Specialty pharmacy products are 
148.21 	defined as those used by a small number of recipients or recipients with complex and chronic 
148.22 	diseases that require expensive and challenging drug regimens. Examples of these conditions 
148.23 	include, but are not limited to: multiple sclerosis, HIV/AIDS, transplantation, hepatitis C, 
148.24 	growth hormone deficiency, Crohn's Disease, rheumatoid arthritis, and certain forms of 
148.25 	cancer. Specialty pharmaceutical products include injectable and infusion therapies, 
148.26 	biotechnology drugs, antihemophilic factor products, high-cost therapies, and therapies that 
148.27 	require complex care. The commissioner shall consult with the Formulary Committee to 
148.28 	develop a list of specialty pharmacy products subject to maximum allowable cost 
148.29 	reimbursement. In consulting with the Formulary Committee in developing this list, the 
148.30 	commissioner shall take into consideration the population served by specialty pharmacy 
148.31 	products, the current delivery system and standard of care in the state, and access to care 
148.32 	issues. The commissioner shall have the discretion to adjust the maximum allowable cost 
148.33 	to prevent access to care issues.
148.34 	(g) Home infusion therapy services provided by home infusion therapy pharmacies must 
148.35 	be paid at rates according to subdivision 8d.
149.1 	(h) The commissioner shall contract with a vendor to conduct a cost of dispensing survey 
149.2 	for all pharmacies that are physically located in the state of Minnesota that dispense outpatient 
149.3 	drugs under medical assistance. The commissioner shall ensure that the vendor has prior 
149.4 	experience in conducting cost of dispensing surveys. Each pharmacy enrolled with the 
149.5 	department to dispense outpatient prescription drugs to fee-for-service members must 
149.6 	respond to the cost of dispensing survey. The commissioner may sanction a pharmacy under 
149.7 	section 256B.064 for failure to respond. The commissioner shall require the vendor to 
149.8 	measure a single statewide cost of dispensing for specialty prescription drugs and a single 
149.9 	statewide cost of dispensing for nonspecialty prescription drugs for all responding pharmacies 
149.10 	to measure the mean, mean weighted by total prescription volume, mean weighted by 
149.11 	medical assistance prescription volume, median, median weighted by total prescription 
149.12 	volume, and median weighted by total medical assistance prescription volume. The 
149.13 	commissioner shall post a copy of the final cost of dispensing survey report on the 
149.14 	department's website. The initial survey must be completed no later than January 1, 2021, 
149.15 	and repeated every three years. The commissioner shall provide a summary of the results 
149.16 	of each cost of dispensing survey and provide recommendations for any changes to the 
149.17 	dispensing fee to the chairs and ranking members of the legislative committees with 
149.18 	jurisdiction over medical assistance pharmacy reimbursement. Notwithstanding section 
149.19 	256.01, subdivision 42, this paragraph does not expire.
149.20 	(i) The commissioner shall increase the ingredient cost reimbursement calculated in 
149.21 	paragraphs (a) and (f) by 1.8 percent for prescription and nonprescription drugs subject to 
149.22 	the wholesale drug distributor tax under section 295.52.

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

149.24 	Sec. 12. Minnesota Statutes 2022, section 256B.0625, is amended by adding a subdivision 
149.25 	to read:
149.26 		Subd. 13k.Value-based purchasing arrangements. (a) The commissioner may enter 
149.27 	into a value-based purchasing arrangement for the medical assistance or MinnesotaCare 
149.28 	program by written arrangement with a drug manufacturer based on agreed-upon metrics. 
149.29 	The commissioner may enter into a contract with a vendor for the purpose of participating 
149.30 	in a value-based purchasing arrangement. A value-based purchasing arrangement may 
149.31 	include a rebate, a discount, a price reduction, risk sharing, a reimbursement, a guarantee, 
149.32 	shared savings payments, withholds, a bonus, or any other thing of value. A value-based 
149.33 	purchasing arrangement must provide the same amount or more of a value or discount in 
150.1 	the aggregate as would claiming the mandatory federal drug rebate under the Federal Social 
150.2 	Security Act, section 1927.
150.3 	(b) Nothing in this section shall be interpreted as requiring a drug manufacturer or the  
150.4 	commissioner to enter into an arrangement as described in paragraph (a).
150.5 	(c) Nothing in this section shall be interpreted as altering or modifying medical assistance 
150.6 	coverage requirements under the federal Social Security Act, section 1927.
150.7 	(d) If the commissioner determines that a state plan amendment is necessary for 
150.8 	implementation before implementing a value-based purchasing arrangement, the 
150.9 	commissioner shall request the amendment and may delay implementing this provision 
150.10 	until the amendment is approved.

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

150.12 	Sec. 13. Minnesota Statutes 2022, section 256B.0625, subdivision 28b, is amended to 
150.13 	read:
150.14 		Subd. 28b.Doula services. Medical assistance covers doula services provided by a 
150.15 	certified doula as defined in section 148.995, subdivision 2, of the mother's choice. For 
150.16 	purposes of this section, "doula services" means childbirth education and support services, 
150.17 	including emotional and physical support provided during pregnancy, labor, birth, and 
150.18 	postpartum. The commissioner shall enroll doula agencies and individual treating doulas 
150.19 	to provide direct reimbursement.

150.20 	EFFECTIVE DATE. This section is effective January 1, 2024, or upon federal approval, 
150.21 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
150.22 	when federal approval is obtained.

150.23 	Sec. 14. Minnesota Statutes 2022, section 256B.0625, subdivision 30, is amended to read:
150.24 		Subd. 30.Other clinic services. (a) Medical assistance covers rural health clinic services, 
150.25 	federally qualified health center services, nonprofit community health clinic services, and 
150.26 	public health clinic services. Rural health clinic services and federally qualified health center 
150.27 	services mean services defined in United States Code, title 42, section 1396d(a)(2)(B) and 
150.28 	(C). Payment for rural health clinic and federally qualified health center services shall be 
150.29 	made according to applicable federal law and regulation.
150.30 	(b) A federally qualified health center (FQHC) that is beginning initial operation shall 
150.31 	submit an estimate of budgeted costs and visits for the initial reporting period in the form 
150.32 	and detail required by the commissioner. An FQHC that is already in operation shall submit 
151.1 	an initial report using actual costs and visits for the initial reporting period. Within 90 days 
151.2 	of the end of its reporting period, an FQHC shall submit, in the form and detail required by 
151.3 	the commissioner, a report of its operations, including allowable costs actually incurred for 
151.4 	the period and the actual number of visits for services furnished during the period, and other 
151.5 	information required by the commissioner. FQHCs that file Medicare cost reports shall 
151.6 	provide the commissioner with a copy of the most recent Medicare cost report filed with 
151.7 	the Medicare program intermediary for the reporting year which support the costs claimed 
151.8 	on their cost report to the state.
151.9 	(c) In order to continue cost-based payment under the medical assistance program 
151.10 	according to paragraphs (a) and (b), an FQHC or rural health clinic must apply for designation 
151.11 	as an essential community provider within six months of final adoption of rules by the 
151.12 	Department of Health according to section 62Q.19, subdivision 7. For those FQHCs and 
151.13 	rural health clinics that have applied for essential community provider status within the 
151.14 	six-month time prescribed, medical assistance payments will continue to be made according 
151.15 	to paragraphs (a) and (b) for the first three years after application. For FQHCs and rural 
151.16 	health clinics that either do not apply within the time specified above or who have had 
151.17 	essential community provider status for three years, medical assistance payments for health 
151.18 	services provided by these entities shall be according to the same rates and conditions 
151.19 	applicable to the same service provided by health care providers that are not FQHCs or rural 
151.20 	health clinics.
151.21 	(d) Effective July 1, 1999, the provisions of paragraph (c) requiring an FQHC or a rural 
151.22 	health clinic to make application for an essential community provider designation in order 
151.23 	to have cost-based payments made according to paragraphs (a) and (b) no longer apply.
151.24 	(e) Effective January 1, 2000, payments made according to paragraphs (a) and (b) shall 
151.25 	be limited to the cost phase-out schedule of the Balanced Budget Act of 1997.
151.26 	(f) Effective January 1, 2001, through December 31, 2020, each FQHC and rural health 
151.27 	clinic may elect to be paid either under the prospective payment system established in United 
151.28 	States Code, title 42, section 1396a(aa), or under an alternative payment methodology 
151.29 	consistent with the requirements of United States Code, title 42, section 1396a(aa), and 
151.30 	approved by the Centers for Medicare and Medicaid Services. The alternative payment 
151.31 	methodology shall be 100 percent of cost as determined according to Medicare cost 
151.32 	principles.
151.33 	(g) Effective for services provided on or after January 1, 2021, all claims for payment 
151.34 	of clinic services provided by FQHCs and rural health clinics shall be paid by the 
152.1 	commissioner, according to an annual election by the FQHC or rural health clinic, under 
152.2 	the current prospective payment system described in paragraph (f) or the alternative payment 
152.3 	methodology described in paragraph (l).
152.4 	(h) For purposes of this section, "nonprofit community clinic" is a clinic that:
152.5 	(1) has nonprofit status as specified in chapter 317A;
152.6 	(2) has tax exempt status as provided in Internal Revenue Code, section 501(c)(3);
152.7 	(3) is established to provide health services to low-income population groups, uninsured, 
152.8 	high-risk and special needs populations, underserved and other special needs populations;
152.9 	(4) employs professional staff at least one-half of which are familiar with the cultural 
152.10 	background of their clients;
152.11 	(5) charges for services on a sliding fee scale designed to provide assistance to 
152.12 	low-income clients based on current poverty income guidelines and family size; and
152.13 	(6) does not restrict access or services because of a client's financial limitations or public 
152.14 	assistance status and provides no-cost care as needed.
152.15 	(i) Effective for services provided on or after January 1, 2015, all claims for payment 
152.16 	of clinic services provided by FQHCs and rural health clinics shall be paid by the 
152.17 	commissioner. the commissioner shall determine the most feasible method for paying claims 
152.18 	from the following options:
152.19 	(1) FQHCs and rural health clinics submit claims directly to the commissioner for 
152.20 	payment, and the commissioner provides claims information for recipients enrolled in a 
152.21 	managed care or county-based purchasing plan to the plan, on a regular basis; or
152.22 	(2) FQHCs and rural health clinics submit claims for recipients enrolled in a managed 
152.23 	care or county-based purchasing plan to the plan, and those claims are submitted by the 
152.24 	plan to the commissioner for payment to the clinic.
152.25 	(j) For clinic services provided prior to January 1, 2015, the commissioner shall calculate 
152.26 	and pay monthly the proposed managed care supplemental payments to clinics, and clinics 
152.27 	shall conduct a timely review of the payment calculation data in order to finalize all 
152.28 	supplemental payments in accordance with federal law. Any issues arising from a clinic's 
152.29 	review must be reported to the commissioner by January 1, 2017. Upon final agreement 
152.30 	between the commissioner and a clinic on issues identified under this subdivision, and in 
152.31 	accordance with United States Code, title 42, section 1396a(bb), no supplemental payments 
152.32 	for managed care plan or county-based purchasing plan claims for services provided prior 
153.1 	to January 1, 2015, shall be made after June 30, 2017. If the commissioner and clinics are 
153.2 	unable to resolve issues under this subdivision, the parties shall submit the dispute to the 
153.3 	arbitration process under section 14.57.
153.4 	(k) The commissioner shall seek a federal waiver, authorized under section 1115 of the 
153.5 	Social Security Act, to obtain federal financial participation at the 100 percent federal 
153.6 	matching percentage available to facilities of the Indian Health Service or tribal organization 
153.7 	in accordance with section 1905(b) of the Social Security Act for expenditures made to 
153.8 	organizations dually certified under Title V of the Indian Health Care Improvement Act, 
153.9 	Public Law 94-437, and as a federally qualified health center under paragraph (a) that 
153.10 	provides services to American Indian and Alaskan Native individuals eligible for services 
153.11 	under this subdivision.
153.12 	(l) All claims for payment of clinic services provided by FQHCs and rural health clinics, 
153.13 	that have elected to be paid under this paragraph, shall be paid by the commissioner according 
153.14 	to the following requirements:
153.15 	(1) the commissioner shall establish a single medical and single dental organization 
153.16 	encounter rate for each FQHC and rural health clinic when applicable;
153.17 	(2) each FQHC and rural health clinic is eligible for same day reimbursement of one 
153.18 	medical and one dental organization encounter rate if eligible medical and dental visits are 
153.19 	provided on the same day;
153.20 	(3) the commissioner shall reimburse FQHCs and rural health clinics, in accordance 
153.21 	with current applicable Medicare cost principles, their allowable costs, including direct 
153.22 	patient care costs and patient-related support services. Nonallowable costs include, but are 
153.23 	not limited to:
153.24 	(i) general social services and administrative costs;
153.25 	(ii) retail pharmacy;
153.26 	(iii) patient incentives, food, housing assistance, and utility assistance;
153.27 	(iv) external lab and x-ray;
153.28 	(v) navigation services;
153.29 	(vi) health care taxes;
153.30 	(vii) advertising, public relations, and marketing;
153.31 	(viii) office entertainment costs, food, alcohol, and gifts;
154.1 	(ix) contributions and donations;
154.2 	(x) bad debts or losses on awards or contracts;
154.3 	(xi) fines, penalties, damages, or other settlements;
154.4 	(xii) fundraising, investment management, and associated administrative costs;
154.5 	(xiii) research and associated administrative costs;
154.6 	(xiv) nonpaid workers;
154.7 	(xv) lobbying;
154.8 	(xvi) scholarships and student aid; and
154.9 	(xvii) nonmedical assistance covered services;
154.10 	(4) the commissioner shall review the list of nonallowable costs in the years between 
154.11 	the rebasing process established in clause (5), in consultation with the Minnesota Association 
154.12 	of Community Health Centers, FQHCs, and rural health clinics. The commissioner shall 
154.13 	publish the list and any updates in the Minnesota health care programs provider manual;
154.14 	(5) the initial applicable base year organization encounter rates for FQHCs and rural 
154.15 	health clinics shall be computed for services delivered on or after January 1, 2021, and:
154.16 	(i) must be determined using each FQHC's and rural health clinic's Medicare cost reports 
154.17 	from 2017 and 2018;
154.18 	(ii) must be according to current applicable Medicare cost principles as applicable to 
154.19 	FQHCs and rural health clinics without the application of productivity screens and upper 
154.20 	payment limits or the Medicare prospective payment system FQHC aggregate mean upper 
154.21 	payment limit;
154.22 	(iii) must be subsequently rebased every two years thereafter using the Medicare cost 
154.23 	reports that are three and four years prior to the rebasing year. Years in which organizational 
154.24 	cost or claims volume is reduced or altered due to a pandemic, disease, or other public health 
154.25 	emergency shall not be used as part of a base year when the base year includes more than 
154.26 	one year. The commissioner may use the Medicare cost reports of a year unaffected by a 
154.27 	pandemic, disease, or other public health emergency, or previous two consecutive years, 
154.28 	inflated to the base year as established under item (iv);
154.29 	(iv) must be inflated to the base year using the inflation factor described in clause (6); 
154.30 	and
154.31 	(v) the commissioner must provide for a 60-day appeals process under section 14.57;
155.1 	(6) the commissioner shall annually inflate the applicable organization encounter rates 
155.2 	for FQHCs and rural health clinics from the base year payment rate to the effective date by 
155.3 	using the CMS FQHC Market Basket inflator established under United States Code, title 
155.4 	42, section 1395m(o), less productivity;
155.5 	(7) FQHCs and rural health clinics that have elected the alternative payment methodology 
155.6 	under this paragraph shall submit all necessary documentation required by the commissioner 
155.7 	to compute the rebased organization encounter rates no later than six months following the 
155.8 	date the applicable Medicare cost reports are due to the Centers for Medicare and Medicaid 
155.9 	Services;
155.10 	(8) the commissioner shall reimburse FQHCs and rural health clinics an additional 
155.11 	amount relative to their medical and dental organization encounter rates that is attributable 
155.12 	to the tax required to be paid according to section 295.52, if applicable;
155.13 	(9) FQHCs and rural health clinics may submit change of scope requests to the 
155.14 	commissioner if the change of scope would result in an increase or decrease of 2.5 percent 
155.15 	or higher in the medical or dental organization encounter rate currently received by the 
155.16 	FQHC or rural health clinic;
155.17 	(10) for FQHCs and rural health clinics seeking a change in scope with the commissioner 
155.18 	under clause (9) that requires the approval of the scope change by the federal Health 
155.19 	Resources Services Administration:
155.20 	(i) FQHCs and rural health clinics shall submit the change of scope request, including 
155.21 	the start date of services, to the commissioner within seven business days of submission of 
155.22 	the scope change to the federal Health Resources Services Administration;
155.23 	(ii) the commissioner shall establish the effective date of the payment change as the 
155.24 	federal Health Resources Services Administration date of approval of the FQHC's or rural 
155.25 	health clinic's scope change request, or the effective start date of services, whichever is 
155.26 	later; and
155.27 	(iii) within 45 days of one year after the effective date established in item (ii), the 
155.28 	commissioner shall conduct a retroactive review to determine if the actual costs established 
155.29 	under clause (3) or encounters result in an increase or decrease of 2.5 percent or higher in 
155.30 	the medical or dental organization encounter rate, and if this is the case, the commissioner 
155.31 	shall revise the rate accordingly and shall adjust payments retrospectively to the effective 
155.32 	date established in item (ii);
156.1 	(11) for change of scope requests that do not require federal Health Resources Services 
156.2 	Administration approval, the FQHC and rural health clinic shall submit the request to the 
156.3 	commissioner before implementing the change, and the effective date of the change is the 
156.4 	date the commissioner received the FQHC's or rural health clinic's request, or the effective 
156.5 	start date of the service, whichever is later. The commissioner shall provide a response to 
156.6 	the FQHC's or rural health clinic's request within 45 days of submission and provide a final 
156.7 	approval within 120 days of submission. This timeline may be waived at the mutual 
156.8 	agreement of the commissioner and the FQHC or rural health clinic if more information is 
156.9 	needed to evaluate the request;
156.10 	(12) the commissioner, when establishing organization encounter rates for new FQHCs 
156.11 	and rural health clinics, shall consider the patient caseload of existing FQHCs and rural 
156.12 	health clinics in a 60-mile radius for organizations established outside of the seven-county 
156.13 	metropolitan area, and in a 30-mile radius for organizations in the seven-county metropolitan 
156.14 	area. If this information is not available, the commissioner may use Medicare cost reports 
156.15 	or audited financial statements to establish base rates;
156.16 	(13) the commissioner shall establish a quality measures workgroup that includes 
156.17 	representatives from the Minnesota Association of Community Health Centers, FQHCs, 
156.18 	and rural health clinics, to evaluate clinical and nonclinical measures; and
156.19 	(14) the commissioner shall not disallow or reduce costs that are related to an FQHC's 
156.20 	or rural health clinic's participation in health care educational programs to the extent that 
156.21 	the costs are not accounted for in the alternative payment methodology encounter rate 
156.22 	established in this paragraph.
156.23 	(m) Effective July 1, 2023, an enrolled Indian health service facility or a Tribal health 
156.24 	center operating under a 638 contract or compact may elect to also enroll as a Tribal FQHC. 
156.25 	Requirements that otherwise apply to an FQHC covered in this subdivision do not apply to 
156.26 	a Tribal FQHC enrolled under this paragraph, except that any requirements necessary to 
156.27 	comply with federal regulations do apply to a Tribal FQHC. The commissioner shall establish 
156.28 	an alternative payment method for a Tribal FQHC enrolled under this paragraph that uses 
156.29 	the same method and rates applicable to a Tribal facility or health center that does not enroll 
156.30 	as a Tribal FQHC.

156.31 	Sec. 15. Minnesota Statutes 2022, section 256B.0631, subdivision 1, is amended to read:
156.32 		Subdivision 1.Cost-sharing. (a) Except as provided in subdivision 2, the medical 
156.33 	assistance benefit plan shall include the following cost-sharing for all recipients, effective 
156.34 	for services provided on or after from September 1, 2011, to December 31, 2023:
157.1 	(1) $3 per nonpreventive visit, except as provided in paragraph (b). For purposes of this 
157.2 	subdivision, a visit means an episode of service which is required because of a recipient's 
157.3 	symptoms, diagnosis, or established illness, and which is delivered in an ambulatory setting 
157.4 	by a physician or physician assistant, chiropractor, podiatrist, nurse midwife, advanced 
157.5 	practice nurse, audiologist, optician, or optometrist;
157.6 	(2) $3.50 for nonemergency visits to a hospital-based emergency room, except that this 
157.7 	co-payment shall be increased to $20 upon federal approval;
157.8 	(3) $3 per brand-name drug prescription, $1 per generic drug prescription, and $1 per 
157.9 	prescription for a brand-name multisource drug listed in preferred status on the preferred 
157.10 	drug list, subject to a $12 per month maximum for prescription drug co-payments. No 
157.11 	co-payments shall apply to antipsychotic drugs when used for the treatment of mental illness;
157.12 	(4) a family deductible equal to $2.75 per month per family and adjusted annually by 
157.13 	the percentage increase in the medical care component of the CPI-U for the period of 
157.14 	September to September of the preceding calendar year, rounded to the next higher five-cent 
157.15 	increment; and
157.16 	(5) total monthly cost-sharing must not exceed five percent of family income. For 
157.17 	purposes of this paragraph, family income is the total earned and unearned income of the 
157.18 	individual and the individual's spouse, if the spouse is enrolled in medical assistance and 
157.19 	also subject to the five percent limit on cost-sharing. This paragraph does not apply to 
157.20 	premiums charged to individuals described under section 256B.057, subdivision 9.
157.21 	(b) Recipients of medical assistance are responsible for all co-payments and deductibles 
157.22 	in this subdivision.
157.23 	(c) Notwithstanding paragraph (b), the commissioner, through the contracting process 
157.24 	under sections 256B.69 and 256B.692, may allow managed care plans and county-based 
157.25 	purchasing plans to waive the family deductible under paragraph (a), clause (4). The value 
157.26 	of the family deductible shall not be included in the capitation payment to managed care 
157.27 	plans and county-based purchasing plans. Managed care plans and county-based purchasing 
157.28 	plans shall certify annually to the commissioner the dollar value of the family deductible.
157.29 	(d) Notwithstanding paragraph (b), the commissioner may waive the collection of the 
157.30 	family deductible described under paragraph (a), clause (4), from individuals and allow 
157.31 	long-term care and waivered service providers to assume responsibility for payment.
157.32 	(e) Notwithstanding paragraph (b), the commissioner, through the contracting process 
157.33 	under section 256B.0756 shall allow the pilot program in Hennepin County to waive 
158.1 	co-payments. The value of the co-payments shall not be included in the capitation payment 
158.2 	amount to the integrated health care delivery networks under the pilot program.
158.3 	(f) For services provided on or after January 1, 2024, the medical assistance benefit plan 
158.4 	must not include cost-sharing or deductibles for any medical assistance recipient or benefit.

158.5 	Sec. 16. Minnesota Statutes 2022, section 256B.196, subdivision 2, is amended to read:
158.6 		Subd. 2.Commissioner's duties. (a) For the purposes of this subdivision and subdivision 
158.7 	3, the commissioner shall determine the fee-for-service outpatient hospital services upper 
158.8 	payment limit for nonstate government hospitals. The commissioner shall then determine 
158.9 	the amount of a supplemental payment to Hennepin County Medical Center and Regions 
158.10 	Hospital for these services that would increase medical assistance spending in this category 
158.11 	to the aggregate upper payment limit for all nonstate government hospitals in Minnesota. 
158.12 	In making this determination, the commissioner shall allot the available increases between 
158.13 	Hennepin County Medical Center and Regions Hospital based on the ratio of medical 
158.14 	assistance fee-for-service outpatient hospital payments to the two facilities. The commissioner 
158.15 	shall adjust this allotment as necessary based on federal approvals, the amount of 
158.16 	intergovernmental transfers received from Hennepin and Ramsey Counties, and other factors, 
158.17 	in order to maximize the additional total payments. The commissioner shall inform Hennepin 
158.18 	County and Ramsey County of the periodic intergovernmental transfers necessary to match 
158.19 	federal Medicaid payments available under this subdivision in order to make supplementary 
158.20 	medical assistance payments to Hennepin County Medical Center and Regions Hospital 
158.21 	equal to an amount that when combined with existing medical assistance payments to 
158.22 	nonstate governmental hospitals would increase total payments to hospitals in this category 
158.23 	for outpatient services to the aggregate upper payment limit for all hospitals in this category 
158.24 	in Minnesota. Upon receipt of these periodic transfers, the commissioner shall make 
158.25 	supplementary payments to Hennepin County Medical Center and Regions Hospital.
158.26 	(b) For the purposes of this subdivision and subdivision 3, the commissioner shall 
158.27 	determine an upper payment limit for physicians and other billing professionals affiliated 
158.28 	with Hennepin County Medical Center and with Regions Hospital. The upper payment limit 
158.29 	shall be based on the average commercial rate or be determined using another method 
158.30 	acceptable to the Centers for Medicare and Medicaid Services. The commissioner shall 
158.31 	inform Hennepin County and Ramsey County of the periodic intergovernmental transfers 
158.32 	necessary to match the federal Medicaid payments available under this subdivision in order 
158.33 	to make supplementary payments to physicians and other billing professionals affiliated 
158.34 	with Hennepin County Medical Center and to make supplementary payments to physicians 
159.1 	and other billing professionals affiliated with Regions Hospital through HealthPartners 
159.2 	Medical Group equal to the difference between the established medical assistance payment 
159.3 	for physician and other billing professional services and the upper payment limit. Upon 
159.4 	receipt of these periodic transfers, the commissioner shall make supplementary payments 
159.5 	to physicians and other billing professionals affiliated with Hennepin County Medical Center 
159.6 	and shall make supplementary payments to physicians and other billing professionals 
159.7 	affiliated with Regions Hospital through HealthPartners Medical Group.
159.8 	(c) Beginning January 1, 2010, Ramsey County may make monthly voluntary 
159.9 	intergovernmental transfers to the commissioner in amounts not to exceed $6,000,000 per 
159.10 	year. The commissioner shall increase the medical assistance capitation payments to any 
159.11 	licensed health plan under contract with the medical assistance program that agrees to make 
159.12 	enhanced payments to Regions Hospital. The increase shall be in an amount equal to the 
159.13 	annual value of the monthly transfers plus federal financial participation, with each health 
159.14 	plan receiving its pro rata share of the increase based on the pro rata share of medical 
159.15 	assistance admissions to Regions Hospital by those plans. For the purposes of this paragraph, 
159.16 	"the base amount" means the total annual value of increased medical assistance capitation 
159.17 	payments, including the voluntary intergovernmental transfers, under this paragraph in 
159.18 	calendar year 2017. For managed care contracts beginning on or after January 1, 2018, the 
159.19 	commissioner shall reduce the total annual value of increased medical assistance capitation 
159.20 	payments under this paragraph by an amount equal to ten percent of the base amount, and 
159.21 	by an additional ten percent of the base amount for each subsequent contract year until 
159.22 	December 31, 2025. Upon the request of the commissioner, health plans shall submit 
159.23 	individual-level cost data for verification purposes. The commissioner may ratably reduce 
159.24 	these payments on a pro rata basis in order to satisfy federal requirements for actuarial 
159.25 	soundness. If payments are reduced, transfers shall be reduced accordingly. Any licensed 
159.26 	health plan that receives increased medical assistance capitation payments under the 
159.27 	intergovernmental transfer described in this paragraph shall increase its medical assistance 
159.28 	payments to Regions Hospital by the same amount as the increased payments received in 
159.29 	the capitation payment described in this paragraph. This paragraph expires January 1, 2026.
159.30 	(d) For the purposes of this subdivision and subdivision 3, the commissioner shall 
159.31 	determine an upper payment limit for ambulance services affiliated with Hennepin County 
159.32 	Medical Center and the city of St. Paul, and ambulance services owned and operated by 
159.33 	another governmental entity that chooses to participate by requesting the commissioner to 
159.34 	determine an upper payment limit. The upper payment limit shall be based on the average 
159.35 	commercial rate or be determined using another method acceptable to the Centers for 
160.1 	Medicare and Medicaid Services. The commissioner shall inform Hennepin County, the 
160.2 	city of St. Paul, and other participating governmental entities of the periodic 
160.3 	intergovernmental transfers necessary to match the federal Medicaid payments available 
160.4 	under this subdivision in order to make supplementary payments to Hennepin County 
160.5 	Medical Center, the city of St. Paul, and other participating governmental entities equal to 
160.6 	the difference between the established medical assistance payment for ambulance services 
160.7 	and the upper payment limit. Upon receipt of these periodic transfers, the commissioner 
160.8 	shall make supplementary payments to Hennepin County Medical Center, the city of St. 
160.9 	Paul, and other participating governmental entities. A tribal government that owns and 
160.10 	operates an ambulance service is not eligible to participate under this subdivision.
160.11 	(e) For the purposes of this subdivision and subdivision 3, the commissioner shall 
160.12 	determine an upper payment limit for physicians, dentists, and other billing professionals 
160.13 	affiliated with the University of Minnesota and University of Minnesota Physicians. The 
160.14 	upper payment limit shall be based on the average commercial rate or be determined using 
160.15 	another method acceptable to the Centers for Medicare and Medicaid Services. The 
160.16 	commissioner shall inform the University of Minnesota Medical School and University of 
160.17 	Minnesota School of Dentistry of the periodic intergovernmental transfers necessary to 
160.18 	match the federal Medicaid payments available under this subdivision in order to make 
160.19 	supplementary payments to physicians, dentists, and other billing professionals affiliated 
160.20 	with the University of Minnesota and the University of Minnesota Physicians equal to the 
160.21 	difference between the established medical assistance payment for physician, dentist, and 
160.22 	other billing professional services and the upper payment limit. Upon receipt of these periodic 
160.23 	transfers, the commissioner shall make supplementary payments to physicians, dentists, 
160.24 	and other billing professionals affiliated with the University of Minnesota and the University 
160.25 	of Minnesota Physicians.
160.26 	(f) The commissioner shall inform the transferring governmental entities on an ongoing 
160.27 	basis of the need for any changes needed in the intergovernmental transfers in order to 
160.28 	continue the payments under paragraphs (a) to (e), at their maximum level, including 
160.29 	increases in upper payment limits, changes in the federal Medicaid match, and other factors.
160.30 	(g) The payments in paragraphs (a) to (e) shall be implemented independently of each 
160.31 	other, subject to federal approval and to the receipt of transfers under subdivision 3.
160.32 	(h) All of the data and funding transactions related to the payments in paragraphs (a) to 
160.33 	(e) shall be between the commissioner and the governmental entities. The commissioner 
160.34 	shall not make payments to governmental entities eligible to receive payments described 
161.1 	in paragraphs (a) to (e) that fail to submit the data needed to compute the payments within 
161.2 	24 months of the initial request from the commissioner.
161.3 	(i) For purposes of this subdivision, billing professionals are limited to physicians, nurse 
161.4 	practitioners, nurse midwives, clinical nurse specialists, physician assistants, 
161.5 	anesthesiologists, certified registered nurse anesthetists, dentists, dental hygienists, and 
161.6 	dental therapists.

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

161.8 	Sec. 17. Minnesota Statutes 2022, section 256B.69, subdivision 5a, is amended to read:
161.9 		Subd. 5a.Managed care contracts. (a) Managed care contracts under this section and 
161.10 	section 256L.12 shall be entered into or renewed on a calendar year basis. The commissioner 
161.11 	may issue separate contracts with requirements specific to services to medical assistance 
161.12 	recipients age 65 and older.
161.13 	(b) A prepaid health plan providing covered health services for eligible persons pursuant 
161.14 	to chapters 256B and 256L is responsible for complying with the terms of its contract with 
161.15 	the commissioner. Requirements applicable to managed care programs under chapters 256B 
161.16 	and 256L established after the effective date of a contract with the commissioner take effect 
161.17 	when the contract is next issued or renewed.
161.18 	(c) The commissioner shall withhold five percent of managed care plan payments under 
161.19 	this section and county-based purchasing plan payments under section 256B.692 for the 
161.20 	prepaid medical assistance program pending completion of performance targets. Each 
161.21 	performance target must be quantifiable, objective, measurable, and reasonably attainable, 
161.22 	except in the case of a performance target based on a federal or state law or rule. Criteria 
161.23 	for assessment of each performance target must be outlined in writing prior to the contract 
161.24 	effective date. Clinical or utilization performance targets and their related criteria must 
161.25 	consider evidence-based research and reasonable interventions when available or applicable 
161.26 	to the populations served, and must be developed with input from external clinical experts 
161.27 	and stakeholders, including managed care plans, county-based purchasing plans, and 
161.28 	providers. The managed care or county-based purchasing plan must demonstrate, to the 
161.29 	commissioner's satisfaction, that the data submitted regarding attainment of the performance 
161.30 	target is accurate. The commissioner shall periodically change the administrative measures 
161.31 	used as performance targets in order to improve plan performance across a broader range 
161.32 	of administrative services. The performance targets must include measurement of plan 
161.33 	efforts to contain spending on health care services and administrative activities. The 
161.34 	commissioner may adopt plan-specific performance targets that take into account factors 
162.1 	affecting only one plan, including characteristics of the plan's enrollee population. The 
162.2 	withheld funds must be returned no sooner than July of the following year if performance 
162.3 	targets in the contract are achieved. The commissioner may exclude special demonstration 
162.4 	projects under subdivision 23.
162.5 	(d) The commissioner shall require that managed care plans:
162.6 	(1) use the assessment and authorization processes, forms, timelines, standards, 
162.7 	documentation, and data reporting requirements, protocols, billing processes, and policies 
162.8 	consistent with medical assistance fee-for-service or the Department of Human Services 
162.9 	contract requirements for all personal care assistance services under section 256B.0659 and 
162.10 	community first services and supports under section 256B.85; and
162.11 	(2) by January 30 of each year that follows a rate increase for any aspect of services 
162.12 	under section 256B.0659 or 256B.85, inform the commissioner and the chairs and ranking 
162.13 	minority members of the legislative committees with jurisdiction over rates determined 
162.14 	under section 256B.851 of the amount of the rate increase that is paid to each personal care 
162.15 	assistance provider agency with which the plan has a contract.
162.16 	(e) Effective for services rendered on or after January 1, 2012, the commissioner shall 
162.17 	include as part of the performance targets described in paragraph (c) a reduction in the health 
162.18 	plan's emergency department utilization rate for medical assistance and MinnesotaCare 
162.19 	enrollees, as determined by the commissioner. For 2012, the reduction shall be based on 
162.20 	the health plan's utilization in 2009. To earn the return of the withhold each subsequent 
162.21 	year, the managed care plan or county-based purchasing plan must achieve a qualifying 
162.22 	reduction of no less than ten percent of the plan's emergency department utilization rate for 
162.23 	medical assistance and MinnesotaCare enrollees, excluding enrollees in programs described 
162.24 	in subdivisions 23 and 28, compared to the previous measurement year until the final 
162.25 	performance target is reached. When measuring performance, the commissioner must 
162.26 	consider the difference in health risk in a managed care or county-based purchasing plan's 
162.27 	membership in the baseline year compared to the measurement year, and work with the 
162.28 	managed care or county-based purchasing plan to account for differences that they agree 
162.29 	are significant.
162.30 	The withheld funds must be returned no sooner than July 1 and no later than July 31 of 
162.31 	the following calendar year if the managed care plan or county-based purchasing plan 
162.32 	demonstrates to the satisfaction of the commissioner that a reduction in the utilization rate 
162.33 	was achieved. The commissioner shall structure the withhold so that the commissioner 
163.1 	returns a portion of the withheld funds in amounts commensurate with achieved reductions 
163.2 	in utilization less than the targeted amount.
163.3 	The withhold described in this paragraph shall continue for each consecutive contract 
163.4 	period until the plan's emergency room utilization rate for state health care program enrollees 
163.5 	is reduced by 25 percent of the plan's emergency room utilization rate for medical assistance 
163.6 	and MinnesotaCare enrollees for calendar year 2009. Hospitals shall cooperate with the 
163.7 	health plans in meeting this performance target and shall accept payment withholds that 
163.8 	may be returned to the hospitals if the performance target is achieved.
163.9 	(f) Effective for services rendered on or after January 1, 2012, the commissioner shall 
163.10 	include as part of the performance targets described in paragraph (c) a reduction in the plan's 
163.11 	hospitalization admission rate for medical assistance and MinnesotaCare enrollees, as 
163.12 	determined by the commissioner. To earn the return of the withhold each year, the managed 
163.13 	care plan or county-based purchasing plan must achieve a qualifying reduction of no less 
163.14 	than five percent of the plan's hospital admission rate for medical assistance and 
163.15 	MinnesotaCare enrollees, excluding enrollees in programs described in subdivisions 23 and 
163.16 	28, compared to the previous calendar year until the final performance target is reached. 
163.17 	When measuring performance, the commissioner must consider the difference in health risk 
163.18 	in a managed care or county-based purchasing plan's membership in the baseline year 
163.19 	compared to the measurement year, and work with the managed care or county-based 
163.20 	purchasing plan to account for differences that they agree are significant.
163.21 	The withheld funds must be returned no sooner than July 1 and no later than July 31 of 
163.22 	the following calendar year if the managed care plan or county-based purchasing plan 
163.23 	demonstrates to the satisfaction of the commissioner that this reduction in the hospitalization 
163.24 	rate was achieved. The commissioner shall structure the withhold so that the commissioner 
163.25 	returns a portion of the withheld funds in amounts commensurate with achieved reductions 
163.26 	in utilization less than the targeted amount.
163.27 	The withhold described in this paragraph shall continue until there is a 25 percent 
163.28 	reduction in the hospital admission rate compared to the hospital admission rates in calendar 
163.29 	year 2011, as determined by the commissioner. The hospital admissions in this performance 
163.30 	target do not include the admissions applicable to the subsequent hospital admission 
163.31 	performance target under paragraph (g). Hospitals shall cooperate with the plans in meeting 
163.32 	this performance target and shall accept payment withholds that may be returned to the 
163.33 	hospitals if the performance target is achieved.
164.1 	(g) Effective for services rendered on or after January 1, 2012, the commissioner shall 
164.2 	include as part of the performance targets described in paragraph (c) a reduction in the plan's 
164.3 	hospitalization admission rates for subsequent hospitalizations within 30 days of a previous 
164.4 	hospitalization of a patient regardless of the reason, for medical assistance and MinnesotaCare 
164.5 	enrollees, as determined by the commissioner. To earn the return of the withhold each year, 
164.6 	the managed care plan or county-based purchasing plan must achieve a qualifying reduction 
164.7 	of the subsequent hospitalization rate for medical assistance and MinnesotaCare enrollees, 
164.8 	excluding enrollees in programs described in subdivisions 23 and 28, of no less than five 
164.9 	percent compared to the previous calendar year until the final performance target is reached.
164.10 	The withheld funds must be returned no sooner than July 1 and no later than July 31 of 
164.11 	the following calendar year if the managed care plan or county-based purchasing plan 
164.12 	demonstrates to the satisfaction of the commissioner that a qualifying reduction in the 
164.13 	subsequent hospitalization rate was achieved. The commissioner shall structure the withhold 
164.14 	so that the commissioner returns a portion of the withheld funds in amounts commensurate 
164.15 	with achieved reductions in utilization less than the targeted amount.
164.16 	The withhold described in this paragraph must continue for each consecutive contract 
164.17 	period until the plan's subsequent hospitalization rate for medical assistance and 
164.18 	MinnesotaCare enrollees, excluding enrollees in programs described in subdivisions 23 and 
164.19 	28, is reduced by 25 percent of the plan's subsequent hospitalization rate for calendar year 
164.20 	2011. Hospitals shall cooperate with the plans in meeting this performance target and shall 
164.21 	accept payment withholds that must be returned to the hospitals if the performance target 
164.22 	is achieved.
164.23 	(h) (e) Effective for services rendered on or after January 1, 2013, through December 
164.24 	31, 2013, the commissioner shall withhold 4.5 percent of managed care plan payments under 
164.25 	this section and county-based purchasing plan payments under section 256B.692 for the 
164.26 	prepaid medical assistance program. The withheld funds must be returned no sooner than 
164.27 	July 1 and no later than July 31 of the following year. The commissioner may exclude 
164.28 	special demonstration projects under subdivision 23.
164.29 	(i)(f) Effective for services rendered on or after January 1, 2014, the commissioner shall 
164.30 	withhold three percent of managed care plan payments under this section and county-based 
164.31 	purchasing plan payments under section 256B.692 for the prepaid medical assistance 
164.32 	program. The withheld funds must be returned no sooner than July 1 and no later than July 
164.33 	31 of the following year. The commissioner may exclude special demonstration projects 
164.34 	under subdivision 23.
165.1 	(j) (g) A managed care plan or a county-based purchasing plan under section 256B.692 
165.2 	may include as admitted assets under section 62D.044 any amount withheld under this 
165.3 	section that is reasonably expected to be returned.
165.4 	(k) (h) Contracts between the commissioner and a prepaid health plan are exempt from 
165.5 	the set-aside and preference provisions of section 16C.16, subdivisions 6, paragraph (a), 
165.6 	and 7.
165.7 	(l) (i) The return of the withhold under paragraphs (h) and (i) is not subject to the 
165.8 	requirements of paragraph (c).
165.9 	(m) (j) Managed care plans and county-based purchasing plans shall maintain current 
165.10 	and fully executed agreements for all subcontractors, including bargaining groups, for 
165.11 	administrative services that are expensed to the state's public health care programs. 
165.12 	Subcontractor agreements determined to be material, as defined by the commissioner after 
165.13 	taking into account state contracting and relevant statutory requirements, must be in the 
165.14 	form of a written instrument or electronic document containing the elements of offer, 
165.15 	acceptance, consideration, payment terms, scope, duration of the contract, and how the 
165.16 	subcontractor services relate to state public health care programs. Upon request, the 
165.17 	commissioner shall have access to all subcontractor documentation under this paragraph. 
165.18 	Nothing in this paragraph shall allow release of information that is nonpublic data pursuant 
165.19 	to section 13.02.

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

165.21 	Sec. 18. Minnesota Statutes 2022, section 256B.76, subdivision 1, is amended to read:
165.22 		Subdivision 1.Physician reimbursement.  (a) Effective for services rendered on or after 
165.23 	October 1, 1992, the commissioner shall make payments for physician services as follows:
165.24 	(1) payment for level one Centers for Medicare and Medicaid Services' common 
165.25 	procedural coding system codes titled "office and other outpatient services," "preventive 
165.26 	medicine new and established patient," "delivery, antepartum, and postpartum care," "critical 
165.27 	care," cesarean delivery and pharmacologic management provided to psychiatric patients, 
165.28 	and level three codes for enhanced services for prenatal high risk, shall be paid at the lower 
165.29 	of (i) submitted charges, or (ii) 25 percent above the rate in effect on June 30, 1992;
165.30 	(2) payments for all other services shall be paid at the lower of (i) submitted charges, 
165.31 	or (ii) 15.4 percent above the rate in effect on June 30, 1992; and
165.32 	(3) all physician rates shall be converted from the 50th percentile of 1982 to the 50th 
165.33 	percentile of 1989, less the percent in aggregate necessary to equal the above increases 
166.1 	except that payment rates for home health agency services shall be the rates in effect on 
166.2 	September 30, 1992.
166.3 	(b) Effective for services rendered on or after January 1, 2000, payment rates for physician 
166.4 	and professional services shall be increased by three percent over the rates in effect on 
166.5 	December 31, 1999, except for home health agency and family planning agency services. 
166.6 	The increases in this paragraph shall be implemented January 1, 2000, for managed care.
166.7 	(c) Effective for services rendered on or after July 1, 2009, payment rates for physician 
166.8 	and professional services shall be reduced by five percent, except that for the period July 
166.9 	1, 2009, through June 30, 2010, payment rates shall be reduced by 6.5 percent for the medical 
166.10 	assistance and general assistance medical care programs, over the rates in effect on June 
166.11 	30, 2009. This reduction and the reductions in paragraph (d) do not apply to office or other 
166.12 	outpatient visits, preventive medicine visits and family planning visits billed by physicians, 
166.13 	advanced practice nurses, or physician assistants in a family planning agency or in one of 
166.14 	the following primary care practices: general practice, general internal medicine, general 
166.15 	pediatrics, general geriatrics, and family medicine. This reduction and the reductions in 
166.16 	paragraph (d) do not apply to federally qualified health centers, rural health centers, and 
166.17 	Indian health services. Effective October 1, 2009, payments made to managed care plans 
166.18 	and county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall 
166.19 	reflect the payment reduction described in this paragraph.
166.20 	(d) Effective for services rendered on or after July 1, 2010, payment rates for physician 
166.21 	and professional services shall be reduced an additional seven percent over the five percent 
166.22 	reduction in rates described in paragraph (c). This additional reduction does not apply to 
166.23 	physical therapy services, occupational therapy services, and speech pathology and related 
166.24 	services provided on or after July 1, 2010. This additional reduction does not apply to 
166.25 	physician services billed by a psychiatrist or an advanced practice nurse with a specialty in 
166.26 	mental health. Effective October 1, 2010, payments made to managed care plans and 
166.27 	county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall reflect 
166.28 	the payment reduction described in this paragraph.
166.29 	(e) Effective for services rendered on or after September 1, 2011, through June 30, 2013, 
166.30 	payment rates for physician and professional services shall be reduced three percent from 
166.31 	the rates in effect on August 31, 2011. This reduction does not apply to physical therapy 
166.32 	services, occupational therapy services, and speech pathology and related services.
166.33 	(f) Effective for services rendered on or after September 1, 2014, payment rates for 
166.34 	physician and professional services, including physical therapy, occupational therapy, speech 
167.1 	pathology, and mental health services shall be increased by five percent from the rates in 
167.2 	effect on August 31, 2014. In calculating this rate increase, the commissioner shall not 
167.3 	include in the base rate for August 31, 2014, the rate increase provided under section 
167.4 	256B.76, subdivision 7. This increase does not apply to federally qualified health centers, 
167.5 	rural health centers, and Indian health services. Payments made to managed care plans and 
167.6 	county-based purchasing plans shall not be adjusted to reflect payments under this paragraph.
167.7 	(g) Effective for services rendered on or after July 1, 2015, payment rates for physical 
167.8 	therapy, occupational therapy, and speech pathology and related services provided by a 
167.9 	hospital meeting the criteria specified in section 62Q.19, subdivision 1, paragraph (a), clause 
167.10 	(4), shall be increased by 90 percent from the rates in effect on June 30, 2015. Payments 
167.11 	made to managed care plans and county-based purchasing plans shall not be adjusted to 
167.12 	reflect payments under this paragraph.
167.13 	(h) Any ratables effective before July 1, 2015, do not apply to early intensive 
167.14 	developmental and behavioral intervention (EIDBI) benefits described in section 256B.0949.
167.15 	(i) The commissioner may reimburse the cost incurred to pay the Department of Health 
167.16 	for metabolic disorder testing of newborns who are medical assistance recipients when the 
167.17 	sample is collected outside of an inpatient hospital setting or freestanding birth center setting 
167.18 	because the newborn was born outside of a hospital setting or freestanding birth center 
167.19 	setting or because it is not medically appropriate to collect the sample during the inpatient 
167.20 	stay for the birth.
167.21 	(j) Effective for service rendered on or after January 1, 2024, payment rates for family 
167.22 	planning and abortion services shall be increased by ten percent. This increase does not 
167.23 	apply to federally qualified health centers, rural health centers, or Indian health services.

167.24 	Sec. 19. Minnesota Statutes 2022, section 256B.76, subdivision 2, is amended to read:
167.25 		Subd. 2.Dental reimbursement.  (a) Effective for services rendered on or after from
167.26 	October 1, 1992, to December 31, 2023, the commissioner shall make payments for dental 
167.27 	services as follows:
167.28 	(1) dental services shall be paid at the lower of (i) submitted charges, or (ii) 25 percent 
167.29 	above the rate in effect on June 30, 1992; and
167.30 	(2) dental rates shall be converted from the 50th percentile of 1982 to the 50th percentile 
167.31 	of 1989, less the percent in aggregate necessary to equal the above increases.
168.1 	(b) Beginning From October 1, 1999, to December 31, 2023, the payment for tooth 
168.2 	sealants and fluoride treatments shall be the lower of (1) submitted charge, or (2) 80 percent 
168.3 	of median 1997 charges.
168.4 	(c) Effective for services rendered on or after from January 1, 2000, to December 31, 
168.5 	2023, payment rates for dental services shall be increased by three percent over the rates in 
168.6 	effect on December 31, 1999.
168.7 	(d) Effective for services provided on or after from January 1, 2002, to December 31, 
168.8 	2023, payment for diagnostic examinations and dental x-rays provided to children under 
168.9 	age 21 shall be the lower of (1) the submitted charge, or (2) 85 percent of median 1999 
168.10 	charges.
168.11 	(e) The increases listed in paragraphs (b) and (c) shall be implemented January 1, 2000, 
168.12 	for managed care.
168.13 	(f) Effective for dental services rendered on or after October 1, 2010, by a state-operated 
168.14 	dental clinic, payment shall be paid on a reasonable cost basis that is based on the Medicare 
168.15 	principles of reimbursement. This payment shall be effective for services rendered on or 
168.16 	after January 1, 2011, to recipients enrolled in managed care plans or county-based 
168.17 	purchasing plans.
168.18 	(g) Beginning in fiscal year 2011, if the payments to state-operated dental clinics in 
168.19 	paragraph (f), including state and federal shares, are less than $1,850,000 per fiscal year, a 
168.20 	supplemental state payment equal to the difference between the total payments in paragraph 
168.21 	(f) and $1,850,000 shall be paid from the general fund to state-operated services for the 
168.22 	operation of the dental clinics.
168.23 	(h) Effective for services rendered on or after January 1, 2014, through December 31, 
168.24 	2021, payment rates for dental services shall be increased by five percent from the rates in 
168.25 	effect on December 31, 2013. This increase does not apply to state-operated dental clinics 
168.26 	in paragraph (f), federally qualified health centers, rural health centers, and Indian health 
168.27 	services. Effective January 1, 2014, payments made to managed care plans and county-based 
168.28 	purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall reflect the payment 
168.29 	increase described in this paragraph.
168.30 	(i) Effective for services provided on or after January 1, 2017, through December 31, 
168.31 	2021, the commissioner shall increase payment rates by 9.65 percent for dental services 
168.32 	provided outside of the seven-county metropolitan area. This increase does not apply to 
168.33 	state-operated dental clinics in paragraph (f), federally qualified health centers, rural health 
168.34 	centers, or Indian health services. Effective January 1, 2017, payments to managed care 
169.1 	plans and county-based purchasing plans under sections 256B.69 and 256B.692 shall reflect 
169.2 	the payment increase described in this paragraph.
169.3 	(j) Effective for services provided on or after July 1, 2017, through December 31, 2021, 
169.4 	the commissioner shall increase payment rates by 23.8 percent for dental services provided 
169.5 	to enrollees under the age of 21. This rate increase does not apply to state-operated dental 
169.6 	clinics in paragraph (f), federally qualified health centers, rural health centers, or Indian 
169.7 	health centers. This rate increase does not apply to managed care plans and county-based 
169.8 	purchasing plans.
169.9 	(k) (h) Effective for services provided on or after January 1, 2022, the commissioner 
169.10 	shall exclude from medical assistance and MinnesotaCare payments for dental services to 
169.11 	public health and community health clinics the 20 percent increase authorized under Laws 
169.12 	1989, chapter 327, section 5, subdivision 2, paragraph (b).
169.13 	(l) (i) Effective for services provided on or after from January 1, 2022, to December 31, 
169.14 	2023, the commissioner shall increase payment rates by 98 percent for all dental services. 
169.15 	This rate increase does not apply to state-operated dental clinics, federally qualified health 
169.16 	centers, rural health centers, or Indian health services.
169.17 	(m) (j) Managed care plans and county-based purchasing plans shall reimburse providers 
169.18 	at a level that is at least equal to the rate paid under fee-for-service for dental services. If, 
169.19 	for any coverage year, federal approval is not received for this paragraph, the commissioner 
169.20 	must adjust the capitation rates paid to managed care plans and county-based purchasing 
169.21 	plans for that contract year to reflect the removal of this provision. Contracts between 
169.22 	managed care plans and county-based purchasing plans and providers to whom this paragraph 
169.23 	applies must allow recovery of payments from those providers if capitation rates are adjusted 
169.24 	in accordance with this paragraph. Payment recoveries must not exceed an amount equal 
169.25 	to any increase in rates that results from this provision. If, for any coverage year, federal 
169.26 	approval is not received for this paragraph, the commissioner shall not implement this 
169.27 	paragraph for subsequent coverage years.
169.28 	(k) Effective for services provided on or after January 1, 2024, payment for dental 
169.29 	services must be the lower of submitted charges or the percentile of 2018-submitted charges 
169.30 	from claims paid by the commissioner so that the total aggregate expenditures does not 
169.31 	exceed the total spend as outlined in the applicable paragraphs (a) to (k). This paragraph 
169.32 	does not apply to federally qualified health centers, rural health centers, state-operated dental 
169.33 	clinics, or Indian health centers.
170.1 	(l) Beginning January 1, 2027, and every three years thereafter, the commissioner shall 
170.2 	rebase payment rates for dental services to a percentile of submitted charges for the applicable 
170.3 	base year using charge data from claims paid by the commissioner so that the total aggregate 
170.4 	expenditures does not exceed the total spend as outlined in paragraph (k) plus the change 
170.5 	in the Medical Economic Index (MEI). In 2027, the change in the MEI must be measured 
170.6 	from midyear of 2024 and 2026. For each subsequent rebasing, the change in the MEI must 
170.7 	be measured between the years that are one year after the rebasing years. The base year 
170.8 	used for each rebasing must be the calendar year that is two years prior to the effective date 
170.9 	of the rebasing. This paragraph does not apply to federally qualified health centers, rural 
170.10 	health centers, state-operated dental clinics, or Indian health centers.

170.11 	EFFECTIVE DATE. This section is effective January 1, 2024, or upon federal approval, 
170.12 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
170.13 	when federal approval is obtained.

170.14 	Sec. 20. Minnesota Statutes 2022, section 256B.76, subdivision 4, is amended to read:
170.15 		Subd. 4.Critical access dental providers.  (a) The commissioner shall increase 
170.16 	reimbursements to dentists and dental clinics deemed by the commissioner to be critical 
170.17 	access dental providers. For dental services rendered on or after July 1, 2016, through 
170.18 	December 31, 2021, the commissioner shall increase reimbursement by 37.5 percent above 
170.19 	the reimbursement rate that would otherwise be paid to the critical access dental provider, 
170.20 	except as specified under paragraph (b). The commissioner shall pay the managed care 
170.21 	plans and county-based purchasing plans in amounts sufficient to reflect increased 
170.22 	reimbursements to critical access dental providers as approved by the commissioner.
170.23 	(b) For dental services rendered on or after July 1, 2016, through December 31, 2021, 
170.24 	by a dental clinic or dental group that meets the critical access dental provider designation 
170.25 	under paragraph (f), clause (4), and is owned and operated by a health maintenance 
170.26 	organization licensed under chapter 62D, the commissioner shall increase reimbursement 
170.27 	by 35 percent above the reimbursement rate that would otherwise be paid to the critical 
170.28 	access provider.
170.29 	(c) (a) The commissioner shall increase reimbursement to dentists and dental clinics 
170.30 	deemed by the commissioner to be critical access dental providers. For dental services 
170.31 	provided on or after January 1, 2022, by a dental provider deemed to be a critical access 
170.32 	dental provider under paragraph (f), the commissioner shall increase reimbursement by 20 
170.33 	percent above the reimbursement rate that would otherwise be paid to the critical access 
171.1 	dental provider. This paragraph does not apply to federally qualified health centers, rural 
171.2 	health centers, state-operated dental clinics, or Indian health centers.
171.3 	(d) (b) Managed care plans and county-based purchasing plans shall increase 
171.4 	reimbursement to critical access dental providers by at least the amount specified in paragraph 
171.5 	(c). If, for any coverage year, federal approval is not received for this paragraph, the 
171.6 	commissioner must adjust the capitation rates paid to managed care plans and county-based 
171.7 	purchasing plans for that contract year to reflect the removal of this provision. Contracts 
171.8 	between managed care plans and county-based purchasing plans and providers to whom 
171.9 	this paragraph applies must allow recovery of payments from those providers if capitation 
171.10 	rates are adjusted in accordance with this paragraph. Payment recoveries must not exceed 
171.11 	an amount equal to any increase in rates that results from this provision. If, for any coverage 
171.12 	year, federal approval is not received for this paragraph, the commissioner shall not 
171.13 	implement this paragraph for subsequent coverage years.
171.14 	(e) (c) Critical access dental payments made under this subdivision for dental services 
171.15 	provided by a critical access dental provider to an enrollee of a managed care plan or 
171.16 	county-based purchasing plan must not reflect any capitated payments or cost-based payments 
171.17 	from the managed care plan or county-based purchasing plan. The managed care plan or 
171.18 	county-based purchasing plan must base the additional critical access dental payment on 
171.19 	the amount that would have been paid for that service had the dental provider been paid 
171.20 	according to the managed care plan or county-based purchasing plan's fee schedule that 
171.21 	applies to dental providers that are not paid under a capitated payment or cost-based payment.
171.22 	(f) (d) The commissioner shall designate the following dentists and dental clinics as 
171.23 	critical access dental providers:
171.24 	(1) nonprofit community clinics that:
171.25 	(i) have nonprofit status in accordance with chapter 317A;
171.26 	(ii) have tax exempt status in accordance with the Internal Revenue Code, section 
171.27 	501(c)(3);
171.28 	(iii) are established to provide oral health services to patients who are low income, 
171.29 	uninsured, have special needs, and are underserved;
171.30 	(iv) have professional staff familiar with the cultural background of the clinic's patients;
171.31 	(v) charge for services on a sliding fee scale designed to provide assistance to low-income 
171.32 	patients based on current poverty income guidelines and family size;
172.1 	(vi) do not restrict access or services because of a patient's financial limitations or public 
172.2 	assistance status; and
172.3 	(vii) have free care available as needed;
172.4 	(2) federally qualified health centers, rural health clinics, and public health clinics;
172.5 	(3) hospital-based dental clinics owned and operated by a city, county, or former state 
172.6 	hospital as defined in section 62Q.19, subdivision 1, paragraph (a), clause (4);
172.7 	(4) a dental clinic or dental group owned and operated by a nonprofit corporation in 
172.8 	accordance with chapter 317A with more than 10,000 patient encounters per year with 
172.9 	patients who are uninsured or covered by medical assistance or MinnesotaCare;
172.10 	(5) a dental clinic owned and operated by the University of Minnesota or the Minnesota 
172.11 	State Colleges and Universities system; and
172.12 	(6) private practicing dentists if:
172.13 	(i) the dentist's office is located within the seven-county metropolitan area and more 
172.14 	than 50 percent of the dentist's patient encounters per year are with patients who are uninsured 
172.15 	or covered by medical assistance or MinnesotaCare; or
172.16 	(ii) the dentist's office is located outside the seven-county metropolitan area and more 
172.17 	than 25 percent of the dentist's patient encounters per year are with patients who are uninsured 
172.18 	or covered by medical assistance or MinnesotaCare.

172.19 	EFFECTIVE DATE. This section is effective January 1, 2024, or upon federal approval, 
172.20 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
172.21 	when federal approval is obtained.

172.22 	Sec. 21. Minnesota Statutes 2022, section 256L.04, subdivision 10, is amended to read:
172.23 		Subd. 10.Citizenship requirements. (a) Eligibility for MinnesotaCare is limited to 
172.24 	citizens or nationals of the United States and lawfully present noncitizens as defined in 
172.25 	Code of Federal Regulations, title 8, section 103.12. Undocumented noncitizens, with the 
172.26 	exception of children under 19 years of age, are ineligible for MinnesotaCare. For purposes 
172.27 	of this subdivision, an undocumented noncitizen is an individual who resides in the United 
172.28 	States without the approval or acquiescence of the United States Citizenship and Immigration 
172.29 	Services. Families with children who are citizens or nationals of the United States must 
172.30 	cooperate in obtaining satisfactory documentary evidence of citizenship or nationality 
172.31 	according to the requirements of the federal Deficit Reduction Act of 2005, Public Law 
172.32 	109-171.
173.1 	(b) Notwithstanding subdivisions 1 and 7, eligible persons include families and 
173.2 	individuals who are lawfully present and ineligible for medical assistance by reason of 
173.3 	immigration status and who have incomes equal to or less than 200 percent of federal poverty 
173.4 	guidelines.

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

173.6 	Sec. 22. Laws 2020, First Special Session chapter 7, section 1, subdivision 1, as amended 
173.7 	by Laws 2021, First Special Session chapter 7, article 2, section 71, and Laws 2022, chapter 
173.8 	98, article 4, section 49, is amended to read:
173.9 		Subdivision 1.Waivers and modifications; federal funding extension. When the 
173.10 	peacetime emergency declared by the governor in response to the COVID-19 outbreak 
173.11 	expires, is terminated, or is rescinded by the proper authority, the following waivers and 
173.12 	modifications to human services programs issued by the commissioner of human services 
173.13 	pursuant to Executive Orders 20-11 and 20-12 may remain in effect for the time period set 
173.14 	out in applicable federal law or for the time period set out in any applicable federally 
173.15 	approved waiver or state plan amendment, whichever is later:
173.16 	(1) CV15: allowing telephone or video visits for waiver programs;
173.17 	(2) CV17: preserving health care coverage for Medical Assistance and MinnesotaCare
173.18 	as needed to comply with federal guidance from the Centers for Medicare and Medicaid 
173.19 	Services until an enrollee's first renewal following the resumption of medical assistance 
173.20 	and MinnesotaCare renewals after March 31, 2023;
173.21 	(3) CV18: implementation of federal changes to the Supplemental Nutrition Assistance 
173.22 	Program;
173.23 	(4) CV20: eliminating cost-sharing for COVID-19 diagnosis and treatment;
173.24 	(5) CV24: allowing telephone or video use for targeted case management visits;
173.25 	(6) CV30: expanding telemedicine in health care, mental health, and substance use 
173.26 	disorder settings;
173.27 	(7) CV37: implementation of federal changes to the Supplemental Nutrition Assistance 
173.28 	Program;
173.29 	(8) CV39: implementation of federal changes to the Supplemental Nutrition Assistance 
173.30 	Program;
173.31 	(9) CV42: implementation of federal changes to the Supplemental Nutrition Assistance 
173.32 	Program;
174.1 	(10) CV43: expanding remote home and community-based waiver services;
174.2 	(11) CV44: allowing remote delivery of adult day services;
174.3 	(12) CV59: modifying eligibility period for the federally funded Refugee Cash Assistance 
174.4 	Program;
174.5 	(13) CV60: modifying eligibility period for the federally funded Refugee Social Services 
174.6 	Program; and
174.7 	(14) CV109: providing 15 percent increase for Minnesota Food Assistance Program and 
174.8 	Minnesota Family Investment Program maximum food benefits.

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

174.10 	Sec. 23. Laws 2021, First Special Session chapter 7, article 1, section 36, is amended to 
174.11 	read:
174.12 	Sec. 36. RESPONSE TO COVID-19 PUBLIC HEALTH EMERGENCY.
 174.13 	(a) Notwithstanding Minnesota Statutes, section 256B.057, subdivision 9, 256L.06, 
174.14 	subdivision 3, or any other provision to the contrary, the commissioner shall not collect any 
174.15 	unpaid premium for a coverage month that occurred during the COVID-19 public health 
174.16 	emergency declared by the United States Secretary of Health and Human Services until 
174.17 	after an enrollee's first renewal following the resumption of medical assistance and 
174.18 	MinnesotaCare renewals after March 31, 2023.
174.19 	(b) Notwithstanding any provision to the contrary, periodic data matching under 
174.20 	Minnesota Statutes, section 256B.0561, subdivision 2, may be suspended for up to six 12
174.21 	months following the last day of the COVID-19 public health emergency declared by the 
174.22 	United States Secretary of Health and Human Services resumption of medical assistance 
174.23 	and MinnesotaCare renewals after March 31, 2023.
174.24 	(c) Notwithstanding any provision to the contrary, the requirement for the commissioner 
174.25 	of human services to issue an annual report on periodic data matching under Minnesota 
174.26 	Statutes, section 256B.0561, is suspended for one year following the last day of the 
174.27 	COVID-19 public health emergency declared by the United States Secretary of Health and 
174.28 	Human Services.
174.29 	(d) For an individual enrolled in medical assistance as of March 31, 2023, assets 
174.30 	exceeding the limits established by Minnesota Statutes, section 256B.056, subdivision 3, 
175.1 	paragraph (a), must be disregarded until the individual's second annual renewal after the 
175.2 	resumption of renewals after March 31, 2023.
175.3 	(e) The commissioner may temporarily adjust medical assistance eligibility verification 
175.4 	requirements as needed to comply with federal guidance and ensure a timely renewal process 
175.5 	for the period during which enrollees are subject to their first annual renewal after March 
175.6 	31, 2023. The commissioner shall implement sufficient controls to monitor the effectiveness 
175.7 	of verification adjustments and ensure program integrity.
175.8 	(f) Notwithstanding any law to the contrary, the commissioner may temporarily extend 
175.9 	the time frame permitted to take final administrative action on fair hearing requests from 
175.10 	medical assistance recipients under Minnesota Statutes, section 256.045, until the end of 
175.11 	the 23rd month after the public health emergency for COVID-19, as declared by the United 
175.12 	States Secretary of Health and Human Services, ends. During this period, the commissioner 
175.13 	must:
175.14 	(1) not delay resolving expedited fair hearings described in Code of Federal Regulations, 
175.15 	title 42, chapter IV, subchapter C, part 431, subpart E, section 431.224, paragraph (a);
175.16 	(2) provide medical assistance benefits pending the outcome of a fair hearing decision 
175.17 	to any medical assistance recipient who requests a fair hearing within the time provided 
175.18 	under Minnesota Statutes, section 256.045, subdivision 3, paragraph (i), regardless of 
175.19 	whether the recipient has requested benefits pending the outcome of the fair hearing;
175.20 	(3) reinstate medical assistance benefits retroactively to the date of agency action if the 
175.21 	recipient requests a fair hearing after the date of agency action and within the time provided 
175.22 	under Minnesota Statutes, section 256.045, subdivision 3, paragraph (i);
175.23 	(4) take final administrative action within the maximum 90 days permitted under Code 
175.24 	of Federal Regulations, title 42, chapter IV, subchapter C, part 431, subpart E, section 
175.25 	431.244, paragraph (f)(1), for fair hearing requests where medical assistance benefits cannot 
175.26 	be provided pending the outcome of the fair hearing, such as a fair hearing challenging a 
175.27 	denial of eligibility for an applicant;
175.28 	(5) not recoup or recover from the recipient the cost of medical assistance benefits 
175.29 	provided pending final administrative action, even if the agency action is sustained by the 
175.30 	hearing decision; and
175.31 	(6) not use the authority under this paragraph as justification to delay taking final agency 
175.32 	action and only exceed the 90 days permitted for taking final agency action under Code of 
175.33 	Federal Regulations, title 42, chapter IV, subchapter C, part 431, subpart E, section 431.244, 
176.1 	paragraph (f)(1), to the extent the commissioner is unable to take timely final agency action 
176.2 	on a given fair hearing request.

176.3 	EFFECTIVE DATE. This section is effective the day following final enactment, or 
176.4 	upon federal approval, whichever is later. The commissioner of human services shall notify 
176.5 	the revisor of statutes when federal approval is obtained.

176.6 	Sec. 24. Laws 2021, First Special Session chapter 7, article 6, section 26, is amended to 
176.7 	read:
176.8 	Sec. 26. COMMISSIONER OF HUMAN SERVICES; EXTENSION OF COVID-19 
176.9 	HUMAN SERVICES PROGRAM MODIFICATIONS.
 176.10 	Notwithstanding Laws 2020, First Special Session chapter 7, section 1, subdivision 2, 
176.11 	as amended by Laws 2020, Third Special Session chapter 1, section 3, when the peacetime 
176.12 	emergency declared by the governor in response to the COVID-19 outbreak expires, is 
176.13 	terminated, or is rescinded by the proper authority, the following modifications issued by 
176.14 	the commissioner of human services pursuant to Executive Orders 20-11 and 20-12, and 
176.15 	including any amendments to the modification issued before the peacetime emergency 
176.16 	expires, shall remain in effect until July 1, 2023 2025:
176.17 	(1) CV16: expanding access to telemedicine services for Children's Health Insurance 
176.18 	Program, Medical Assistance, and MinnesotaCare enrollees; and
176.19 	(2) CV21: allowing telemedicine alternative for school-linked mental health services 
176.20 	and intermediate school district mental health services.

176.21 	ARTICLE 9
176.22 	MEDICAL EDUCATION AND RESEARCH COST ACCOUNT

176.23 	Section 1. Minnesota Statutes 2022, section 62J.692, subdivision 1, is amended to read:
176.24 		Subdivision 1.Definitions. (a) For purposes of this section, the following definitions 
176.25 	apply:
176.26 	(b) "Accredited clinical training" means the clinical training provided by a medical 
176.27 	education program that is accredited through an organization recognized by the Department 
176.28 	of Education, the Centers for Medicare and Medicaid Services, or another national body 
176.29 	who reviews the accrediting organizations for multiple disciplines and whose standards for 
176.30 	recognizing accrediting organizations are reviewed and approved by the commissioner of 
176.31 	health.
177.1 	(c) "Commissioner" means the commissioner of health.
177.2 	(d) "Clinical medical education program" means the accredited clinical training of 
177.3 	physicians (medical students and residents), doctor of pharmacy practitioners (pharmacy 
177.4 	students and residents), doctors of chiropractic, dentists (dental students and residents), 
177.5 	advanced practice registered nurses (clinical nurse specialists, certified registered nurse 
177.6 	anesthetists, nurse practitioners, and certified nurse midwives), physician assistants, dental 
177.7 	therapists and advanced dental therapists, psychologists, clinical social workers, community 
177.8 	paramedics, and community health workers.
177.9 	(e) "Sponsoring institution" means a hospital, school, or consortium located in Minnesota 
177.10 	that sponsors and maintains primary organizational and financial responsibility for a clinical 
177.11 	medical education program in Minnesota and which is accountable to the accrediting body.
177.12 	(f) "Teaching institution" means a hospital, medical center, clinic, or other organization 
177.13 	that conducts a clinical medical education program in Minnesota.
177.14 	(g) "Trainee" means a student or resident involved in a clinical medical education 
177.15 	program.
177.16 	(h) "Eligible trainee FTE's" means the number of trainees, as measured by full-time 
177.17 	equivalent counts, that are at training sites located in Minnesota with currently active medical 
177.18 	assistance enrollment status and a National Provider Identification (NPI) number where 
177.19 	training occurs in either an inpatient or ambulatory patient care setting and where the training 
177.20 	is funded, in part, by patient care revenues. Training that occurs in nursing facility settings 
177.21 	is not eligible for funding under this section.

177.22 	Sec. 2. Minnesota Statutes 2022, section 62J.692, subdivision 3, is amended to read:
177.23 		Subd. 3.Application process. (a) A clinical medical education program conducted in 
177.24 	Minnesota by a teaching institution to train physicians, doctor of pharmacy practitioners, 
177.25 	dentists, chiropractors, physician assistants, dental therapists and advanced dental therapists, 
177.26 	psychologists, clinical social workers, community paramedics, or community health workers 
177.27 	is eligible for funds under subdivision 4 if the program:
177.28 	(1) is funded, in part, by patient care revenues;
177.29 	(2) occurs in patient care settings that face increased financial pressure as a result of 
177.30 	competition with nonteaching patient care entities; and
177.31 	(3) emphasizes primary care or specialties that are in undersupply in Minnesota.
178.1 	(b) A clinical medical education program for advanced practice nursing is eligible for 
178.2 	funds under subdivision 4 if the program meets the eligibility requirements in paragraph 
178.3 	(a), clauses (1) to (3), and is sponsored by the University of Minnesota Academic Health 
178.4 	Center, the Mayo Foundation, or institutions that are part of the Minnesota State Colleges 
178.5 	and Universities system or members of the Minnesota Private College Council.
178.6 	(c) Applications must be submitted to the commissioner by a sponsoring institution on 
178.7 	behalf of an eligible clinical medical education program and must be received by October 
178.8 	31 of each year for distribution in the following year on a timeline determined by the 
178.9 	commissioner. An application for funds must contain the following information: information 
178.10 	the commissioner deems necessary to determine program eligibility based on the criteria 
178.11 	in paragraphs (a) and (b) and to ensure the equitable distribution of funds.
178.12 	(1) the official name and address of the sponsoring institution and the official name and 
178.13 	site address of the clinical medical education programs on whose behalf the sponsoring 
178.14 	institution is applying;
178.15 	(2) the name, title, and business address of those persons responsible for administering 
178.16 	the funds;
178.17 	(3) for each clinical medical education program for which funds are being sought; the 
178.18 	type and specialty orientation of trainees in the program; the name, site address, and medical 
178.19 	assistance provider number and national provider identification number of each training 
178.20 	site used in the program; the federal tax identification number of each training site used in 
178.21 	the program, where available; the total number of trainees at each training site; and the total 
178.22 	number of eligible trainee FTEs at each site; and
178.23 	(4) other supporting information the commissioner deems necessary to determine program 
178.24 	eligibility based on the criteria in paragraphs (a) and (b) and to ensure the equitable 
178.25 	distribution of funds.
178.26 	(d) An application must include the information specified in clauses (1) to (3) for each 
178.27 	clinical medical education program on an annual basis for three consecutive years. After 
178.28 	that time, an application must include the information specified in clauses (1) to (3) when 
178.29 	requested, at the discretion of the commissioner:
178.30 	(1) audited clinical training costs per trainee for each clinical medical education program 
178.31 	when available or estimates of clinical training costs based on audited financial data;
179.1 	(2) a description of current sources of funding for clinical medical education costs, 
179.2 	including a description and dollar amount of all state and federal financial support, including 
179.3 	Medicare direct and indirect payments; and
179.4 	(3) other revenue received for the purposes of clinical training.
179.5 	(e) (d) An applicant that does not provide information requested by the commissioner 
179.6 	shall not be eligible for funds for the current applicable funding cycle.

179.7 	Sec. 3. Minnesota Statutes 2022, section 62J.692, subdivision 4, is amended to read:
179.8 		Subd. 4.Distribution of funds. (a) The commissioner shall annually distribute the 
179.9 	available medical education fundsrevenue credited or money transferred to the medical 
179.10 	education and research cost account under subdivision 8 and section 297F.10, subdivision 
179.11 	1, clause (2), to all qualifying applicants based on a public program volume factor, which 
179.12 	is determined by the total volume of public program revenue received by each training site 
179.13 	as a percentage of all public program revenue received by all training sites in the fund pool.
179.14 	Public program revenue for the distribution formula includes revenue from medical 
179.15 	assistance and prepaid medical assistance. Training sites that receive no public program 
179.16 	revenue are ineligible for funds available under this subdivision. For purposes of determining 
179.17 	training-site level grants to be distributed under this paragraph, total statewide average costs 
179.18 	per trainee for medical residents is based on audited clinical training costs per trainee in 
179.19 	primary care clinical medical education programs for medical residents. Total statewide 
179.20 	average costs per trainee for dental residents is based on audited clinical training costs per 
179.21 	trainee in clinical medical education programs for dental students. Total statewide average 
179.22 	costs per trainee for pharmacy residents is based on audited clinical training costs per trainee 
179.23 	in clinical medical education programs for pharmacy students.
179.24 	Training sites whose training site level grant is less than $5,000, based on the formula
179.25 	formulas described in this paragraph subdivision, or that train fewer than 0.1 FTE eligible 
179.26 	trainees, are ineligible for funds available under this subdivision. No training sites shall 
179.27 	receive a grant per FTE trainee that is in excess of the 95th percentile grant per FTE across 
179.28 	all eligible training sites; grants in excess of this amount will be redistributed to other eligible 
179.29 	sites based on the formula formulas described in this paragraph subdivision.
179.30 	(b) For funds distributed in fiscal years 2014 and 2015, the distribution formula shall 
179.31 	include a supplemental public program volume factor, which is determined by providing a 
179.32 	supplemental payment to training sites whose public program revenue accounted for at least 
179.33 	0.98 percent of the total public program revenue received by all eligible training sites. The 
180.1 	supplemental public program volume factor shall be equal to ten percent of each training 
180.2 	site's grant for funds distributed in fiscal year 2014 and for funds distributed in fiscal year 
180.3 	2015. Grants to training sites whose public program revenue accounted for less than 0.98 
180.4 	percent of the total public program revenue received by all eligible training sites shall be 
180.5 	reduced by an amount equal to the total value of the supplemental payment. For fiscal year 
180.6 	2016 and beyond, the distribution of funds shall be based solely on the public program 
180.7 	volume factor as described in paragraph (a). Money appropriated through the state general 
180.8 	fund, the health care access fund, and any additional fund for the purpose of funding medical 
180.9 	education and research costs and that does not require federal approval must be awarded 
180.10 	only to eligible training sites who do not qualify for a medical education and research cost 
180.11 	rate factor under sections 256.969, subdivision 2b, paragraph (k), or 256B.75, paragraph 
180.12 	(b). The commissioner shall distribute the available medical education money appropriated 
180.13 	to eligible training sites that do not qualify for a medical education and research cost rate 
180.14 	factor based on a distribution formula determined by the commissioner. The distribution 
180.15 	formula under this paragraph must consider clinical training costs, public program revenues, 
180.16 	and other factors identified by the commissioner that address the objective of supporting 
180.17 	clinical training.
180.18 	(c) Funds distributed shall not be used to displace current funding appropriations from 
180.19 	federal or state sources.
180.20 	(d) Funds shall be distributed to the sponsoring institutions indicating the amount to be 
180.21 	distributed to each of the sponsor's clinical medical education programs based on the criteria 
180.22 	in this subdivision and in accordance with the commissioner's approval letter. Each clinical 
180.23 	medical education program must distribute funds allocated under paragraphs (a) and (b) to 
180.24 	the training sites as specified in the commissioner's approval letter. Sponsoring institutions, 
180.25 	which are accredited through an organization recognized by the Department of Education 
180.26 	or the Centers for Medicare and Medicaid Services, may contract directly with training sites 
180.27 	to provide clinical training. To ensure the quality of clinical training, those accredited 
180.28 	sponsoring institutions must:
180.29 	(1) develop contracts specifying the terms, expectations, and outcomes of the clinical 
180.30 	training conducted at sites; and
180.31 	(2) take necessary action if the contract requirements are not met. Action may include 
180.32 	the withholding of payments disqualifying the training site under this section or the removal 
180.33 	of students from the site.
181.1 	(e) Use of funds is limited to expenses related to eligible clinical training program costs 
181.2 	for eligible programs. The commissioner shall develop a methodology for determining 
181.3 	eligible costs.
181.4 	(f) Any funds not that cannot be distributed in accordance with the commissioner's 
181.5 	approval letter must be returned to the medical education and research fund within 30 days 
181.6 	of receiving notice from the commissioner. The commissioner shall distribute returned 
181.7 	funds to the appropriate training sites in accordance with the commissioner's approval letter.
181.8 	When appropriate, the commissioner shall include the undistributed money in the subsequent 
181.9 	distribution cycle using the applicable methodology described in this subdivision.
181.10 	(g) A maximum of $150,000 of the funds dedicated to the commissioner under section 
181.11 	297F.10, subdivision 1, clause (2), may be used by the commissioner for administrative 
181.12 	expenses associated with implementing this section.

181.13 	Sec. 4. Minnesota Statutes 2022, section 62J.692, subdivision 5, is amended to read:
181.14 		Subd. 5.Report. (a) Sponsoring institutions receiving funds under this section must 
181.15 	sign and submit a medical education grant verification report (GVR) to verify that the correct 
181.16 	grant amount was forwarded to each eligible training site. If the sponsoring institution fails 
181.17 	to submit the GVR by the stated deadline, or to request and meet the deadline for an 
181.18 	extension, the sponsoring institution is required to return the full amount of funds received 
181.19 	to the commissioner within 30 days of receiving notice from the commissioner. The 
181.20 	commissioner shall distribute returned funds to the appropriate training sites in accordance 
181.21 	with the commissioner's approval letter.
181.22 	(b) The reports must provide verification of the distribution of the funds and must include:
181.23 	(1) the total number of eligible trainee FTEs in each clinical medical education program;
181.24 	(2) the name of each funded program and, for each program, the dollar amount distributed 
181.25 	to each training site and a training site expenditure report;
181.26 	(3) (1) documentation of any discrepancies between the initial grant distribution notice 
181.27 	included in the commissioner's approval letter and the actual distribution;
181.28 	(4) (2) a statement by the sponsoring institution stating that the completed grant 
181.29 	verification report is valid and accurate; and
181.30 	(5) (3) other information the commissioner deems appropriate to evaluate the effectiveness 
181.31 	of the use of funds for medical education.
182.1 	(c) Each year, the commissioner shall provide an annual summary report to the legislature 
182.2 	on the implementation of this section. This report is exempt from section 144.05, subdivision 
182.3 	7.

182.4 	Sec. 5. Minnesota Statutes 2022, section 62J.692, subdivision 8, is amended to read:
182.5 		Subd. 8.Federal financial participation.  The commissioner of human services shall 
182.6 	seek to maximize federal financial participation in payments for the dedicated revenue for 
182.7 	medical education and research costs provided under section 297F.10, subdivision 1, clause 
182.8 	(2).
182.9 	The commissioner shall use physician clinic rates where possible to maximize federal 
182.10 	financial participation. Any additional funds that become available must be distributed under 
182.11 	subdivision 4, paragraph (a).

182.12 	Sec. 6. Minnesota Statutes 2022, section 256.969, subdivision 2b, is amended to read:
182.13 		Subd. 2b.Hospital payment rates. (a) For discharges occurring on or after November 
182.14 	1, 2014, hospital inpatient services for hospitals located in Minnesota shall be paid according 
182.15 	to the following:
182.16 	(1) critical access hospitals as defined by Medicare shall be paid using a cost-based 
182.17 	methodology;
182.18 	(2) long-term hospitals as defined by Medicare shall be paid on a per diem methodology 
182.19 	under subdivision 25;
182.20 	(3) rehabilitation hospitals or units of hospitals that are recognized as rehabilitation 
182.21 	distinct parts as defined by Medicare shall be paid according to the methodology under 
182.22 	subdivision 12; and
182.23 	(4) all other hospitals shall be paid on a diagnosis-related group (DRG) methodology.
182.24 	(b) For the period beginning January 1, 2011, through October 31, 2014, rates shall not 
182.25 	be rebased, except that a Minnesota long-term hospital shall be rebased effective January 
182.26 	1, 2011, based on its most recent Medicare cost report ending on or before September 1, 
182.27 	2008, with the provisions under subdivisions 9 and 23, based on the rates in effect on 
182.28 	December 31, 2010. For rate setting periods after November 1, 2014, in which the base 
182.29 	years are updated, a Minnesota long-term hospital's base year shall remain within the same 
182.30 	period as other hospitals.
183.1 	(c) Effective for discharges occurring on and after November 1, 2014, payment rates 
183.2 	for hospital inpatient services provided by hospitals located in Minnesota or the local trade 
183.3 	area, except for the hospitals paid under the methodologies described in paragraph (a), 
183.4 	clauses (2) and (3), shall be rebased, incorporating cost and payment methodologies in a 
183.5 	manner similar to Medicare. The base year or years for the rates effective November 1, 
183.6 	2014, shall be calendar year 2012. The rebasing under this paragraph shall be budget neutral, 
183.7 	ensuring that the total aggregate payments under the rebased system are equal to the total 
183.8 	aggregate payments that were made for the same number and types of services in the base 
183.9 	year. Separate budget neutrality calculations shall be determined for payments made to 
183.10 	critical access hospitals and payments made to hospitals paid under the DRG system. Only 
183.11 	the rate increases or decreases under subdivision 3a or 3c that applied to the hospitals being 
183.12 	rebased during the entire base period shall be incorporated into the budget neutrality 
183.13 	calculation.
183.14 	(d) For discharges occurring on or after November 1, 2014, through the next rebasing 
183.15 	that occurs, the rebased rates under paragraph (c) that apply to hospitals under paragraph 
183.16 	(a), clause (4), shall include adjustments to the projected rates that result in no greater than 
183.17 	a five percent increase or decrease from the base year payments for any hospital. Any 
183.18 	adjustments to the rates made by the commissioner under this paragraph and paragraph (e) 
183.19 	shall maintain budget neutrality as described in paragraph (c).
183.20 	(e) For discharges occurring on or after November 1, 2014, the commissioner may make 
183.21 	additional adjustments to the rebased rates, and when evaluating whether additional 
183.22 	adjustments should be made, the commissioner shall consider the impact of the rates on the 
183.23 	following:
183.24 	(1) pediatric services;
183.25 	(2) behavioral health services;
183.26 	(3) trauma services as defined by the National Uniform Billing Committee;
183.27 	(4) transplant services;
183.28 	(5) obstetric services, newborn services, and behavioral health services provided by 
183.29 	hospitals outside the seven-county metropolitan area;
183.30 	(6) outlier admissions;
183.31 	(7) low-volume providers; and
183.32 	(8) services provided by small rural hospitals that are not critical access hospitals.
184.1 	(f) Hospital payment rates established under paragraph (c) must incorporate the following:
184.2 	(1) for hospitals paid under the DRG methodology, the base year payment rate per 
184.3 	admission is standardized by the applicable Medicare wage index and adjusted by the 
184.4 	hospital's disproportionate population adjustment;
184.5 	(2) for critical access hospitals, payment rates for discharges between November 1, 2014, 
184.6 	and June 30, 2015, shall be set to the same rate of payment that applied for discharges on 
184.7 	October 31, 2014;
184.8 	(3) the cost and charge data used to establish hospital payment rates must only reflect 
184.9 	inpatient services covered by medical assistance; and
184.10 	(4) in determining hospital payment rates for discharges occurring on or after the rate 
184.11 	year beginning January 1, 2011, through December 31, 2012, the hospital payment rate per 
184.12 	discharge shall be based on the cost-finding methods and allowable costs of the Medicare 
184.13 	program in effect during the base year or years. In determining hospital payment rates for 
184.14 	discharges in subsequent base years, the per discharge rates shall be based on the cost-finding 
184.15 	methods and allowable costs of the Medicare program in effect during the base year or 
184.16 	years.
184.17 	(g) The commissioner shall validate the rates effective November 1, 2014, by applying 
184.18 	the rates established under paragraph (c), and any adjustments made to the rates under 
184.19 	paragraph (d) or (e), to hospital claims paid in calendar year 2013 to determine whether the 
184.20 	total aggregate payments for the same number and types of services under the rebased rates 
184.21 	are equal to the total aggregate payments made during calendar year 2013.
184.22 	(h) Effective for discharges occurring on or after July 1, 2017, and every two years 
184.23 	thereafter, payment rates under this section shall be rebased to reflect only those changes 
184.24 	in hospital costs between the existing base year or years and the next base year or years. In 
184.25 	any year that inpatient claims volume falls below the threshold required to ensure a 
184.26 	statistically valid sample of claims, the commissioner may combine claims data from two 
184.27 	consecutive years to serve as the base year. Years in which inpatient claims volume is 
184.28 	reduced or altered due to a pandemic or other public health emergency shall not be used as 
184.29 	a base year or part of a base year if the base year includes more than one year. Changes in 
184.30 	costs between base years shall be measured using the lower of the hospital cost index defined 
184.31 	in subdivision 1, paragraph (a), or the percentage change in the case mix adjusted cost per 
184.32 	claim. The commissioner shall establish the base year for each rebasing period considering 
184.33 	the most recent year or years for which filed Medicare cost reports are available. The 
184.34 	estimated change in the average payment per hospital discharge resulting from a scheduled 
185.1 	rebasing must be calculated and made available to the legislature by January 15 of each 
185.2 	year in which rebasing is scheduled to occur, and must include by hospital the differential 
185.3 	in payment rates compared to the individual hospital's costs.
185.4 	(i) Effective for discharges occurring on or after July 1, 2015, inpatient payment rates 
185.5 	for critical access hospitals located in Minnesota or the local trade area shall be determined 
185.6 	using a new cost-based methodology. The commissioner shall establish within the 
185.7 	methodology tiers of payment designed to promote efficiency and cost-effectiveness. 
185.8 	Payment rates for hospitals under this paragraph shall be set at a level that does not exceed 
185.9 	the total cost for critical access hospitals as reflected in base year cost reports. Until the 
185.10 	next rebasing that occurs, the new methodology shall result in no greater than a five percent 
185.11 	decrease from the base year payments for any hospital, except a hospital that had payments 
185.12 	that were greater than 100 percent of the hospital's costs in the base year shall have their 
185.13 	rate set equal to 100 percent of costs in the base year. The rates paid for discharges on and 
185.14 	after July 1, 2016, covered under this paragraph shall be increased by the inflation factor 
185.15 	in subdivision 1, paragraph (a). The new cost-based rate shall be the final rate and shall not 
185.16 	be settled to actual incurred costs. Hospitals shall be assigned a payment tier based on the 
185.17 	following criteria:
185.18 	(1) hospitals that had payments at or below 80 percent of their costs in the base year 
185.19 	shall have a rate set that equals 85 percent of their base year costs;
185.20 	(2) hospitals that had payments that were above 80 percent, up to and including 90 
185.21 	percent of their costs in the base year shall have a rate set that equals 95 percent of their 
185.22 	base year costs; and
185.23 	(3) hospitals that had payments that were above 90 percent of their costs in the base year 
185.24 	shall have a rate set that equals 100 percent of their base year costs.
185.25 	(j) The commissioner may refine the payment tiers and criteria for critical access hospitals 
185.26 	to coincide with the next rebasing under paragraph (h). The factors used to develop the new 
185.27 	methodology may include, but are not limited to:
185.28 	(1) the ratio between the hospital's costs for treating medical assistance patients and the 
185.29 	hospital's charges to the medical assistance program;
185.30 	(2) the ratio between the hospital's costs for treating medical assistance patients and the 
185.31 	hospital's payments received from the medical assistance program for the care of medical 
185.32 	assistance patients;
186.1 	(3) the ratio between the hospital's charges to the medical assistance program and the 
186.2 	hospital's payments received from the medical assistance program for the care of medical 
186.3 	assistance patients;
186.4 	(4) the statewide average increases in the ratios identified in clauses (1), (2), and (3);
186.5 	(5) the proportion of that hospital's costs that are administrative and trends in 
186.6 	administrative costs; and
186.7 	(6) geographic location.
186.8 	(k) Effective for discharges occurring on or after January 1, 2024, the rates paid to 
186.9 	hospitals described in paragraph (a), clauses (2) to (4), must include a rate factor specific 
186.10 	to each hospital that qualifies for a medical education and research cost distribution under 
186.11 	section 62J.692 subdivision 4, paragraph (a).
186.12 	(l) By [month] [date], [year], the commissioner shall make a one-time supplemental 
186.13 	payment to each hospital that qualifies for a medical education and research cost distribution 
186.14 	under section 62J.692, subdivision 4, paragraph (a), in an amount sufficient to cover the 
186.15 	six-month funding gap created by the effective date of paragraph (k) in the last six months 
186.16 	of calendar year 2023.

186.17 	Sec. 7. Minnesota Statutes 2022, section 256B.75, is amended to read:
186.18 	256B.75 HOSPITAL OUTPATIENT REIMBURSEMENT.
186.19 	(a) For outpatient hospital facility fee payments for services rendered on or after October 
186.20 	1, 1992, the commissioner of human services shall pay the lower of (1) submitted charge, 
186.21 	or (2) 32 percent above the rate in effect on June 30, 1992, except for those services for 
186.22 	which there is a federal maximum allowable payment. Effective for services rendered on 
186.23 	or after January 1, 2000, payment rates for nonsurgical outpatient hospital facility fees and 
186.24 	emergency room facility fees shall be increased by eight percent over the rates in effect on 
186.25 	December 31, 1999, except for those services for which there is a federal maximum allowable 
186.26 	payment. Services for which there is a federal maximum allowable payment shall be paid 
186.27 	at the lower of (1) submitted charge, or (2) the federal maximum allowable payment. Total 
186.28 	aggregate payment for outpatient hospital facility fee services shall not exceed the Medicare 
186.29 	upper limit. If it is determined that a provision of this section conflicts with existing or 
186.30 	future requirements of the United States government with respect to federal financial 
186.31 	participation in medical assistance, the federal requirements prevail. The commissioner 
186.32 	may, in the aggregate, prospectively reduce payment rates to avoid reduced federal financial 
186.33 	participation resulting from rates that are in excess of the Medicare upper limitations.
187.1 	(b) Notwithstanding paragraph (a), payment for outpatient, emergency, and ambulatory 
187.2 	surgery hospital facility fee services for critical access hospitals designated under section 
187.3 	144.1483, clause (9), shall be paid on a cost-based payment system that is based on the 
187.4 	cost-finding methods and allowable costs of the Medicare program. Effective for services 
187.5 	provided on or after July 1, 2015, rates established for critical access hospitals under this 
187.6 	paragraph for the applicable payment year shall be the final payment and shall not be settled 
187.7 	to actual costs. Effective for services delivered on or after the first day of the hospital's fiscal 
187.8 	year ending in 2017, the rate for outpatient hospital services shall be computed using 
187.9 	information from each hospital's Medicare cost report as filed with Medicare for the year 
187.10 	that is two years before the year that the rate is being computed. Rates shall be computed 
187.11 	using information from Worksheet C series until the department finalizes the medical 
187.12 	assistance cost reporting process for critical access hospitals. After the cost reporting process 
187.13 	is finalized, rates shall be computed using information from Title XIX Worksheet D series. 
187.14 	The outpatient rate shall be equal to ancillary cost plus outpatient cost, excluding costs 
187.15 	related to rural health clinics and federally qualified health clinics, divided by ancillary 
187.16 	charges plus outpatient charges, excluding charges related to rural health clinics and federally 
187.17 	qualified health clinics. Effective for services delivered on or after January 1, 2024, the 
187.18 	rates paid to critical access hospitals under this section must be adjusted to include the 
187.19 	amount of any distributions under section 62J.692, subdivision 4, paragraph (a), that were 
187.20 	not included in the rate adjustment described under section 256.969, subdivision 2b, 
187.21 	paragraph (k).
187.22 	(c) Effective for services provided on or after July 1, 2003, rates that are based on the 
187.23 	Medicare outpatient prospective payment system shall be replaced by a budget neutral 
187.24 	prospective payment system that is derived using medical assistance data. The commissioner 
187.25 	shall provide a proposal to the 2003 legislature to define and implement this provision. 
187.26 	When implementing prospective payment methodologies, the commissioner shall use general 
187.27 	methods and rate calculation parameters similar to the applicable Medicare prospective 
187.28 	payment systems for services delivered in outpatient hospital and ambulatory surgical center 
187.29 	settings unless other payment methodologies for these services are specified in this chapter.
187.30 	(d) For fee-for-service services provided on or after July 1, 2002, the total payment, 
187.31 	before third-party liability and spenddown, made to hospitals for outpatient hospital facility 
187.32 	services is reduced by .5 percent from the current statutory rate.
187.33 	(e) In addition to the reduction in paragraph (d), the total payment for fee-for-service 
187.34 	services provided on or after July 1, 2003, made to hospitals for outpatient hospital facility 
187.35 	services before third-party liability and spenddown, is reduced five percent from the current 
188.1 	statutory rates. Facilities defined under section 256.969, subdivision 16, are excluded from 
188.2 	this paragraph.
188.3 	(f) In addition to the reductions in paragraphs (d) and (e), the total payment for 
188.4 	fee-for-service services provided on or after July 1, 2008, made to hospitals for outpatient 
188.5 	hospital facility services before third-party liability and spenddown, is reduced three percent 
188.6 	from the current statutory rates. Mental health services and facilities defined under section 
188.7 	256.969, subdivision 16, are excluded from this paragraph.

188.8 	Sec. 8. Minnesota Statutes 2022, section 297F.10, subdivision 1, is amended to read:
188.9 		Subdivision 1.Tax and use tax on cigarettes. Revenue received from cigarette taxes, 
188.10 	as well as related penalties, interest, license fees, and miscellaneous sources of revenue 
188.11 	shall be deposited by the commissioner in the state treasury and credited as follows:
188.12 	(1) $22,250,000 each year must be credited to the Academic Health Center special 
188.13 	revenue fund hereby created and is annually appropriated to the Board of Regents at the 
188.14 	University of Minnesota for Academic Health Center funding at the University of Minnesota; 
188.15 	and
188.16 	(2) $3,937,000 $3,788,000 each year must be credited to the medical education and 
188.17 	research costs account hereby created in the special revenue fund and is annually appropriated 
188.18 	to the commissioner of health for distribution under section 62J.692, subdivision 4, paragraph 
188.19 	(a); and
188.20 	(3) the balance of the revenues derived from taxes, penalties, and interest (under this 
188.21 	chapter) and from license fees and miscellaneous sources of revenue shall be credited to 
188.22 	the general fund.

188.23 	Sec. 9. REPEALER.
 188.24 	Minnesota Statutes 2022, sections 62J.692, subdivisions 4a, 7, and 7a; 137.38, subdivision 
188.25 	1; and 256B.69, subdivision 5c, are repealed.

188.26 	ARTICLE 10
188.27 	MINNESOTACARE PUBLIC OPTION

188.28 	Section 1. Minnesota Statutes 2022, section 256L.04, subdivision 1c, is amended to read:
188.29 		Subd. 1c.General requirements. To be eligible for MinnesotaCare, a person must meet 
188.30 	the eligibility requirements of this section. A person eligible for MinnesotaCare with an 
188.31 	income less than or equal to 200 percent of the federal poverty guidelines shall not be 
189.1 	considered a qualified individual under section 1312 of the Affordable Care Act, and is not 
189.2 	eligible for enrollment in a qualified health plan offered through MNsure under chapter 
189.3 	62V.

189.4 	EFFECTIVE DATE. This section is effective January 1, 2027, or upon federal approval, 
189.5 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
189.6 	when federal approval is obtained.

189.7 	Sec. 2. Minnesota Statutes 2022, section 256L.04, subdivision 7a, is amended to read:
189.8 		Subd. 7a.Ineligibility. Adults whose income is greater than the limits established under 
189.9 	this section may not enroll in the MinnesotaCare program, except as provided in subdivision 
189.10 	15.

189.11 	EFFECTIVE DATE. This section is effective January 1, 2027, or upon federal approval, 
189.12 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
189.13 	when federal approval is obtained.

189.14 	Sec. 3. Minnesota Statutes 2022, section 256L.04, is amended by adding a subdivision to 
189.15 	read:
189.16 		Subd. 15.Persons eligible for buy-in option. (a) Families and individuals with income 
189.17 	above the maximum income eligibility limit specified in subdivision 1 or 7, including those 
189.18 	with access to employer-sponsored coverage as defined by section 256L.07, subdivision 2, 
189.19 	but who meet all other MinnesotaCare eligibility requirements are eligible for the buy-in 
189.20 	option. All other provisions of this chapter apply unless otherwise specified.
189.21 	(b) Families and individuals may enroll in MinnesotaCare under this subdivision only 
189.22 	during an annual open enrollment period or special enrollment period, as designated by 
189.23 	MNsure and in compliance with Code of Federal Regulations, title 45, parts 155.410 and 
189.24 	155.420.

189.25 	EFFECTIVE DATE. This section is effective January 1, 2027, or upon federal approval, 
189.26 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
189.27 	when federal approval is obtained.

189.28 	Sec. 4. Minnesota Statutes 2022, section 256L.07, subdivision 1, is amended to read:
189.29 		Subdivision 1.General requirements. Individuals enrolled in MinnesotaCare under 
189.30 	section 256L.04, subdivision 1, and individuals enrolled in MinnesotaCare under section 
189.31 	256L.04, subdivision 7, whose income increases above 200 percent of the federal poverty 
190.1 	guidelines, are no longer eligible for the program and shall be disenrolled by the 
190.2 	commissioner, unless they continue MinnesotaCare enrollment through the buy-in option 
190.3 	under section 256L.04, subdivision 15. For persons disenrolled under this subdivision, 
190.4 	MinnesotaCare coverage terminates the last day of the calendar month in which the 
190.5 	commissioner sends advance notice according to Code of Federal Regulations, title 42, 
190.6 	section 431.211, that indicates the income of a family or individual exceeds program income 
190.7 	limits.

190.8 	EFFECTIVE DATE. This section is effective January 1, 2027, or upon federal approval, 
190.9 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
190.10 	when federal approval is obtained.

190.11 	Sec. 5. Minnesota Statutes 2022, section 256L.15, subdivision 2, is amended to read:
190.12 		Subd. 2.Sliding fee scale; monthly individual or family income. (a) The commissioner 
190.13 	shall establish a sliding fee scale to determine the percentage of monthly individual or family 
190.14 	income that households at different income levels must pay to obtain coverage through the 
190.15 	MinnesotaCare program. The sliding fee scale must be based on the enrollee's monthly 
190.16 	individual or family income.
190.17 	(b) Beginning January 1, 2014, MinnesotaCare enrollees shall pay premiums according 
190.18 	to the premium scale specified in paragraph (d), subject to the federal compliance 
190.19 	requirements in paragraphs (e) and (f).
190.20 	(c) Paragraph (b) does not apply to:
190.21 	(1) children 20 years of age or younger; and
190.22 	(2) individuals with household incomes below 35 percent of the federal poverty 
190.23 	guidelines.
190.24 	(d) The following premium scale is established for each individual in the household who 
190.25 	is 21 years of age or older and enrolled in MinnesotaCare:

190.26
190.27	Federal Poverty Guideline 
Greater than or Equal to
	Less than
	Individual Premium 
Amount
	
190.28	35%
	55%
	$4
	
190.29	55%
	80%
	$6
	
190.30	80%
	90%
	$8
	
190.31	90%
	100%
	$10
	
190.32	100%
	110%
	$12
	
190.33	110%
	120%
	$14
	
191.1	120%
	130%
	$15
	
191.2	130%
	140%
	$16
	
191.3	140%
	150%
	$25
	
191.4	150%
	160%
	$37
	
191.5	160%
	170%
	$44
	
191.6	170%
	180%
	$52
	
191.7	180%
	190%
	$61
	
191.8	190%
	200%
	$71
	
191.9	200%
		$80
	
191.10 	(e) Beginning January 1, 2021, the commissioner shall adjust the premium scale 
191.11 	established under paragraph (d) to ensure that premiums do not exceed the amount that an 
191.12 	individual would have been required to pay if the individual was enrolled in an applicable 
191.13 	benchmark plan in accordance with the Code of Federal Regulations, title 42, section 600.505 
191.14 	(a)(1).
191.15 	(f) Notwithstanding the premium scale established under paragraph (d), the commissioner 
191.16 	shall continue to charge premiums in accordance with the simplified premium scale 
191.17 	established to comply with the American Rescue Plan Act of 2021, as amended by the 
191.18 	Inflation Reduction Act of 2022, and in effect from January 1, 2021, to December 31, 2025, 
191.19 	for families and individuals eligible under section 256L.04, subdivisions 1 and 7. The 
191.20 	commissioner shall further adjust the premium scale established under paragraph (d) to 
191.21 	ensure compliance with paragraph (e) as needed in response to changes in federal law.
191.22 	(g) The commissioner shall establish a sliding premium scale for persons eligible through 
191.23 	the buy-in option under section 256L.04, subdivision 15. Beginning January 1, 2027, persons 
191.24 	eligible through the buy-in option shall pay premiums according to the premium scale 
191.25 	established by the commissioner. Persons 20 years of age or younger are exempt from 
191.26 	paying premiums.

191.27 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
191.28 	that the premium scale established under paragraph (g) is effective January 1, 2027, or upon 
191.29 	federal approval, whichever is later. The commissioner of human services shall notify the 
191.30 	revisor of statutes when federal approval is obtained.

191.31 	Sec. 6. TRANSITION TO MINNESOTACARE BUY-IN OPTION.
 191.32 	(a) The commissioner of human services shall continue to administer MinnesotaCare 
191.33 	as a basic health program in accordance with Minnesota Statutes, section 256L.02, 
191.34 	subdivision 5.
192.1 	(b) By January 1, 2027, the commissioner of human services shall implement a buy-in 
192.2 	option that allows individuals with income over 200 percent of the federal poverty guidelines 
192.3 	to be eligible for MinnesotaCare.
192.4 	(c) By December 15, 2024, the commissioner shall present an implementation plan for 
192.5 	the MinnesotaCare buy-in option under Minnesota Statutes, section 256L.04, subdivision 
192.6 	15, as well as any additional legislative changes needed for implementation, to the chairs 
192.7 	and ranking minority members of the legislative committees with jurisdiction over health 
192.8 	care policy and finance.
192.9 	(d) The commissioner of human services shall seek any federal waivers, approvals, and 
192.10 	law changes necessary to implement a MinnesotaCare buy-in option, including but not 
192.11 	limited to any waivers, approvals, or law changes necessary to allow:
192.12 	(1) the state to continue to receive federal basic health program payments for basic health 
192.13 	program-eligible MinnesotaCare enrollees and to receive other federal funding for the 
192.14 	MinnesotaCare public option; and
192.15 	(2) the state to receive federal payments equal to the value of premium tax credits and 
192.16 	cost-sharing reductions that MinnesotaCare enrollees with household incomes greater than 
192.17 	200 percent of the federal poverty guidelines would have otherwise received.
192.18 	(e) In implementing this section, the commissioner of human services shall consult with 
192.19 	the commissioner of commerce and the board of directors of MNsure and may contract for 
192.20 	technical and actuarial assistance.

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

192.22 	ARTICLE 11
192.23 	TRIBAL ELDER OFFICE

192.24 	Section 1. [256.9747] TRIBAL LONG-TERM SERVICES AND SUPPORTS OFFICE.
192.25 	(a) The commissioner of human services shall establish a Tribal Long-Term Services 
192.26 	and Supports Office to promote and facilitate the sovereignty of Minnesota's Tribal Nations, 
192.27 	and to support the consultation duties of the government-to-government relationship with 
192.28 	the state and Tribal governments, as set forth in section 10.65.
192.29 	(b) The purpose of the Tribal Long-Term Services and Supports Office is to demonstrate 
192.30 	respect for the sovereign status of Minnesota's Tribal Nations by:
192.31 	(1) supporting Tribal Nations by delivering tailored technical assistance to bolster Tribes' 
192.32 	ability to deliver long-term services and supports;
193.1 	(2) maximizing access to federal funds and leveraging other resources available to Tribal 
193.2 	Nations, including but not limited to assisting Minnesota Tribal Nations access to Title VI 
193.3 	of the Older Americans Act; and
193.4 	(3) increasing access to culturally appropriate health care for Tribes and members.

193.5 	Sec. 2. [256.9748] TRIBAL LONG-TERM SERVICES AND SUPPORTS ADVISORY 
193.6 	COUNCIL.
193.7 		Subdivision 1.Establishment. A Tribal Long-Term Services and Supports Advisory 
193.8 	Council is created to assist the state authority on developing policies, procedures, and 
193.9 	enhanced programs to support older adults and people with a variety of disabilities, including 
193.10 	but not limited to developmental disabilities, chronic medical conditions, acquired or 
193.11 	traumatic brain injuries, and physical disabilities.
193.12 		Subd. 2.Membership terms, compensation, removal, and expiration. (a) The council 
193.13 	must consist of the following 11 voting members appointed by the commissioner:
193.14 	(1) an American Indian representing the Red Lake Band of Chippewa Indians;
193.15 	(2) an American Indian representing the Fond du Lac Band, Minnesota Chippewa Tribe;
193.16 	(3) an American Indian representing the Grand Portage Band, Minnesota Chippewa 
193.17 	Tribe;
193.18 	(4) an American Indian representing the Leech Lake Band, Minnesota Chippewa Tribe;
193.19 	(5) an American Indian representing the Mille Lacs Band, Minnesota Chippewa Tribe;
193.20 	(6) an American Indian representing the Bois Forte Band, Minnesota Chippewa Tribe;
193.21 	(7) an American Indian representing the White Earth Band, Minnesota Chippewa Tribe;
193.22 	(8) an American Indian representing the Lower Sioux Indian Reservation;
193.23 	(9) an American Indian representing the Prairie Island Sioux Indian Reservation;
193.24 	(10) an American Indian representing the Shakopee Mdewakanton Sioux Indian 
193.25 	Reservation; and
193.26 	(11) an American Indian representing the Upper Sioux Indian Reservation.
193.27 	(b) The terms, compensation, and removal of Tribal Long-Term Services and Supports 
193.28 	Advisory Council members must be as provided in section 15.059.

194.1 	Sec. 3. Minnesota Statutes 2022, section 256B.0924, subdivision 5, is amended to read:
194.2 		Subd. 5.Provider standards. County boards, Tribal Nations, or providers who contract 
194.3 	with the county are eligible to receive medical assistance reimbursement for adult targeted 
194.4 	case management services. To qualify as a provider of targeted case management services 
194.5 	the vendor must:
194.6 	(1) have demonstrated the capacity and experience to provide the activities of case 
194.7 	management services defined in subdivision 4;
194.8 	(2) be able to coordinate and link community resources needed by the recipient;
194.9 	(3) have the administrative capacity and experience to serve the eligible population in 
194.10 	providing services and to ensure quality of services under state and federal requirements;
194.11 	(4) have a financial management system that provides accurate documentation of services 
194.12 	and costs under state and federal requirements;
194.13 	(5) have the capacity to document and maintain individual case records complying with 
194.14 	state and federal requirements;
194.15 	(6) coordinate with county social service agencies responsible for planning for community 
194.16 	social services under chapters 256E and 256F; conducting adult protective investigations 
194.17 	under section 626.557, and conducting prepetition screenings for commitments under section 
194.18 	253B.07;
194.19 	(7) coordinate with health care providers to ensure access to necessary health care 
194.20 	services;
194.21 	(8) have a procedure in place that notifies the recipient and the recipient's legal 
194.22 	representative of any conflict of interest if the contracted targeted case management service 
194.23 	provider also provides the recipient's services and supports and provides information on all 
194.24 	potential conflicts of interest and obtains the recipient's informed consent and provides the 
194.25 	recipient with alternatives; and
194.26 	(9) have demonstrated the capacity to achieve the following performance outcomes: 
194.27 	access, quality, and consumer satisfaction.

195.1 	ARTICLE 12
195.2 	BACKGROUND STUDIES

195.3 	Section 1. Minnesota Statutes 2022, section 245C.10, subdivision 1d, is amended to read:
195.4 		Subd. 1d.State; national criminal history record check fees. The commissioner may 
195.5 	increase background study fees as necessary, commensurate with an increase in state Bureau 
195.6 	of Criminal Apprehension or the national criminal history record check fee fees. The 
195.7 	commissioner shall report any fee increase under this subdivision to the legislature during 
195.8 	the legislative session following the fee increase, so that the legislature may consider adoption 
195.9 	of the fee increase into statute. By July 1 of every year, background study fees shall be set 
195.10 	at the amount adopted by the legislature under this section.

195.11 	Sec. 2. Minnesota Statutes 2022, section 245C.10, subdivision 2, is amended to read:
195.12 		Subd. 2.Supplemental nursing services agencies. The commissioner shall recover the 
195.13 	cost of the background studies initiated by supplemental nursing services agencies registered 
195.14 	under section 144A.71, subdivision 1, through a fee of no more than $42 $44 per study 
195.15 	charged to the agency. The fees collected under this subdivision are appropriated to the 
195.16 	commissioner for the purpose of conducting background studies.

195.17 	Sec. 3. Minnesota Statutes 2022, section 245C.10, subdivision 3, is amended to read:
195.18 		Subd. 3.Personal care provider organizations. The commissioner shall recover the 
195.19 	cost of background studies initiated by a personal care provider organization under sections 
195.20 	256B.0651 to 256B.0654 and 256B.0659 through a fee of no more than $42 $44 per study 
195.21 	charged to the organization responsible for submitting the background study form. The fees 
195.22 	collected under this subdivision are appropriated to the commissioner for the purpose of 
195.23 	conducting background studies.

195.24 	Sec. 4. Minnesota Statutes 2022, section 245C.10, subdivision 4, is amended to read:
195.25 		Subd. 4.Temporary personnel agencies, educational programs, and professional 
195.26 	services agencies. The commissioner shall recover the cost of the background studies 
195.27 	initiated by temporary personnel agencies, educational programs, and professional services 
195.28 	agencies that initiate background studies under section 245C.03, subdivision 4, through a 
195.29 	fee of no more than $42 $44 per study charged to the agency. The fees collected under this 
195.30 	subdivision are appropriated to the commissioner for the purpose of conducting background 
195.31 	studies.

196.1 	Sec. 5. Minnesota Statutes 2022, section 245C.10, subdivision 5, is amended to read:
196.2 		Subd. 5.Adult foster care and family adult day services. The commissioner shall 
196.3 	recover the cost of background studies required under section 245C.03, subdivision 1, for 
196.4 	the purposes of adult foster care and family adult day services licensing, through a fee of 
196.5 	no more than $42 $44 per study charged to the license holder. The fees collected under this 
196.6 	subdivision are appropriated to the commissioner for the purpose of conducting background 
196.7 	studies.

196.8 	Sec. 6. Minnesota Statutes 2022, section 245C.10, subdivision 6, is amended to read:
196.9 		Subd. 6.Unlicensed home and community-based waiver providers of service to 
196.10 	seniors and individuals with disabilities. The commissioner shall recover the cost of 
196.11 	background studies initiated by unlicensed home and community-based waiver providers 
196.12 	of service to seniors and individuals with disabilities under section 256B.4912 through a 
196.13 	fee of no more than $42 $44 per study.

196.14 	Sec. 7. Minnesota Statutes 2022, section 245C.10, subdivision 8, is amended to read:
196.15 		Subd. 8.Children's therapeutic services and supports providers. The commissioner 
196.16 	shall recover the cost of background studies required under section 245C.03, subdivision 
196.17 	7, for the purposes of children's therapeutic services and supports under section 256B.0943, 
196.18 	through a fee of no more than $42 $44 per study charged to the license holder. The fees 
196.19 	collected under this subdivision are appropriated to the commissioner for the purpose of 
196.20 	conducting background studies.

196.21 	Sec. 8. Minnesota Statutes 2022, section 245C.10, subdivision 9, is amended to read:
196.22 		Subd. 9.Human services licensed programs. The commissioner shall recover the cost 
196.23 	of background studies required under section 245C.03, subdivision 1, for all programs that 
196.24 	are licensed by the commissioner, except child foster care when the applicant or license 
196.25 	holder resides in the home where child foster care services are provided, family child care, 
196.26 	child care centers, certified license-exempt child care centers, and legal nonlicensed child 
196.27 	care authorized under chapter 119B, through a fee of no more than $42 $44 per study charged 
196.28 	to the license holder. The fees collected under this subdivision are appropriated to the 
196.29 	commissioner for the purpose of conducting background studies.

197.1 	Sec. 9. Minnesota Statutes 2022, section 245C.10, subdivision 9a, is amended to read:
197.2 		Subd. 9a.Child care programs. The commissioner shall recover the cost of a background 
197.3 	study required for family child care, certified license-exempt child care centers, licensed 
197.4 	child care centers, and legal nonlicensed child care providers authorized under chapter 119B 
197.5 	through a fee of no more than $40 $44 per study charged to the license holder. A fee of no 
197.6 	more than $42 $44 per study shall be charged for studies conducted under section 245C.05, 
197.7 	subdivision 5a, paragraph (a). The fees collected under this subdivision are appropriated to 
197.8 	the commissioner to conduct background studies.

197.9 	Sec. 10. Minnesota Statutes 2022, section 245C.10, subdivision 10, is amended to read:
197.10 		Subd. 10.Community first services and supports organizations. The commissioner 
197.11 	shall recover the cost of background studies initiated by an agency-provider delivering 
197.12 	services under section 256B.85, subdivision 11, or a financial management services provider 
197.13 	providing service functions under section 256B.85, subdivision 13, through a fee of no more 
197.14 	than $42 $44 per study, charged to the organization responsible for submitting the background 
197.15 	study form. The fees collected under this subdivision are appropriated to the commissioner 
197.16 	for the purpose of conducting background studies.

197.17 	Sec. 11. Minnesota Statutes 2022, section 245C.10, subdivision 11, is amended to read:
197.18 		Subd. 11.Providers of housing support. The commissioner shall recover the cost of 
197.19 	background studies initiated by providers of housing support under section 256I.04 through 
197.20 	a fee of no more than $42 $44 per study. The fees collected under this subdivision are 
197.21 	appropriated to the commissioner for the purpose of conducting background studies.

197.22 	Sec. 12. Minnesota Statutes 2022, section 245C.10, subdivision 12, is amended to read:
197.23 		Subd. 12.Child protection workers or social services staff having responsibility for 
197.24 	child protective duties. The commissioner shall recover the cost of background studies 
197.25 	initiated by county social services agencies and local welfare agencies for individuals who 
197.26 	are required to have a background study under section 260E.36, subdivision 3, through a 
197.27 	fee of no more than $42 $44 per study. The fees collected under this subdivision are 
197.28 	appropriated to the commissioner for the purpose of conducting background studies.

197.29 	Sec. 13. Minnesota Statutes 2022, section 245C.10, subdivision 13, is amended to read:
197.30 		Subd. 13.Providers of special transportation service. The commissioner shall recover 
197.31 	the cost of background studies initiated by providers of special transportation service under 
198.1 	section 174.30 through a fee of no more than $42 $44 per study. The fees collected under 
198.2 	this subdivision are appropriated to the commissioner for the purpose of conducting 
198.3 	background studies.

198.4 	Sec. 14. Minnesota Statutes 2022, section 245C.10, subdivision 14, is amended to read:
198.5 		Subd. 14.Children's residential facilities. The commissioner shall recover the cost of 
198.6 	background studies initiated by a licensed children's residential facility through a fee of no 
198.7 	more than $51 $53 per study. Fees collected under this subdivision are appropriated to the 
198.8 	commissioner for purposes of conducting background studies.

198.9 	Sec. 15. Minnesota Statutes 2022, section 245C.10, subdivision 16, is amended to read:
198.10 		Subd. 16.Providers of housing support services. The commissioner shall recover the 
198.11 	cost of background studies initiated by providers of housing support services under section 
198.12 	256B.051 through a fee of no more than $42 $44 per study. The fees collected under this 
198.13 	subdivision are appropriated to the commissioner for the purpose of conducting background 
198.14 	studies.

198.15 	Sec. 16. Minnesota Statutes 2022, section 245C.10, subdivision 17, is amended to read:
198.16 		Subd. 17.Early intensive developmental and behavioral intervention providers. The 
198.17 	commissioner shall recover the cost of background studies required under section 245C.03, 
198.18 	subdivision 15, for the purposes of early intensive developmental and behavioral intervention 
198.19 	under section 256B.0949, through a fee of no more than $42 $44 per study charged to the 
198.20 	enrolled agency. The fees collected under this subdivision are appropriated to the 
198.21 	commissioner for the purpose of conducting background studies.

198.22 	Sec. 17. Minnesota Statutes 2022, section 245C.10, subdivision 20, is amended to read:
198.23 		Subd. 20.Professional Educators Licensing Standards Board. The commissioner 
198.24 	shall recover the cost of background studies initiated by the Professional Educators Licensing 
198.25 	Standards Board through a fee of no more than $51 $53 per study. Fees collected under this 
198.26 	subdivision are appropriated to the commissioner for purposes of conducting background 
198.27 	studies.

198.28 	Sec. 18. Minnesota Statutes 2022, section 245C.10, subdivision 21, is amended to read:
198.29 		Subd. 21.Board of School Administrators. The commissioner shall recover the cost 
198.30 	of background studies initiated by the Board of School Administrators through a fee of no 
199.1 	more than $51 $53 per study. Fees collected under this subdivision are appropriated to the 
199.2 	commissioner for purposes of conducting background studies.

199.3 	Sec. 19. Minnesota Statutes 2022, section 245C.10, is amended by adding a subdivision 
199.4 	to read:
199.5 		Subd. 22.Tribal organizations. The commissioner shall recover the cost of background 
199.6 	studies initiated by Tribal organizations under section 245C.34 for adoption and child foster 
199.7 	care. The fee amount shall be established through interagency agreements between the 
199.8 	commissioner and Tribal organizations or their designees. The fees collected under this 
199.9 	subdivision shall be deposited in the special revenue fund and are appropriated to the 
199.10 	commissioner for the purpose of conducting background studies and criminal background 
199.11 	checks. This change shall go into effect July 1, 2024.

199.12 	Sec. 20. Minnesota Statutes 2022, section 245C.32, subdivision 2, is amended to read:
199.13 		Subd. 2.Use. (a) The commissioner may also use these systems and records to obtain 
199.14 	and provide criminal history data from the Bureau of Criminal Apprehension, criminal 
199.15 	history data held by the commissioner, and data about substantiated maltreatment under 
199.16 	section 626.557 or chapter 260E, for other purposes, provided that:
199.17 	(1) the background study is specifically authorized in statute; or
199.18 	(2) the request is made with the informed consent of the subject of the study as provided 
199.19 	in section 13.05, subdivision 4.
199.20 	(b) An individual making a request under paragraph (a), clause (2), must agree in writing 
199.21 	not to disclose the data to any other individual without the consent of the subject of the data.
199.22 	(c) The commissioner may use these systems to share background study documentation 
199.23 	electronically with entities and individuals who are the subject of a background study.
199.24 	(c) (d) The commissioner may recover the cost of obtaining and providing background 
199.25 	study data by charging the individual or entity requesting the study a fee of no more than 
199.26 	$42 per study as described in section 245C.10. The fees collected under this paragraph are 
199.27 	appropriated to the commissioner for the purpose of conducting background studies.

199.28 	Sec. 21. [245J.01] TITLE.
199.29 	This chapter may be cited as the "Department of Human Services Public Law Background 
199.30 	Studies Act."

200.1 	Sec. 22. [245J.02] DEFINITIONS.
200.2 		Subdivision 1.Scope. The definitions in this section apply to this chapter.
200.3 		Subd. 2.Access to persons served by a program. "Access to persons served by a 
200.4 	program" means physical access to persons receiving services, access to the persons' personal 
200.5 	property, or access to the persons' personal, financial, or health information, without 
200.6 	continuous, direct supervision, as defined in subdivision 8.
200.7 		Subd. 3.Applicant. "Applicant" has the meaning given in section 245A.02, subdivision 
200.8 	3, and applies to entities listed in section 245J.03.
200.9 		Subd. 4.Authorized fingerprint collection vendor. "Authorized fingerprint collection 
200.10 	vendor" means a qualified organization under a written contract with the commissioner to 
200.11 	provide services in accordance with section 245J.05, subdivision 6, paragraph (a).
200.12 		Subd. 5.Commissioner. "Commissioner" means the commissioner of human services.
200.13 		Subd. 6.Continuous, direct supervision. "Continuous, direct supervision" means an 
200.14 	individual is within sight or hearing of the entity's supervising individual to the extent that 
200.15 	the program's supervising individual is capable at all times of intervening to protect the 
200.16 	health and safety of the persons served by the program.
200.17 		Subd. 7.Conviction. "Conviction" has the meaning given in section 609.02, subdivision 
200.18 	5.
200.19 		Subd. 8.Direct contact. "Direct contact" means providing face-to-face care, training, 
200.20 	supervision, counseling, consultation, or medication assistance to persons served by the 
200.21 	program.
200.22 		Subd. 9.Employee. "Employee" means an individual who provides or seeks to provide 
200.23 	services for an entity with which the employee is affiliated in NETStudy 2.0 and who is 
200.24 	subject to oversight by the entity, including but not limited to continuous, direct supervision 
200.25 	and immediate removal from providing direct care services.
200.26 		Subd. 10.Entity. "Entity" means a program, organization, or agency listed in section 
200.27 	245J.03.
200.28 		Subd. 11.License. "License" has the meaning given in section 245A.02, subdivision 8.
200.29 		Subd. 12.License holder. "License holder" has the meaning given in section 245A.02, 
200.30 	subdivision 9, and applies to entities listed in section 245J.03.
200.31 		Subd. 13.National criminal history record check. (a) "National criminal history record 
200.32 	check" means a check of records maintained by the Federal Bureau of Investigation through 
201.1 	submission of fingerprints through the Bureau of Criminal Apprehension to the Federal 
201.2 	Bureau of Investigation, when specifically required by law.
201.3 	(b) For the purposes of this chapter, "national crime information database," "national 
201.4 	criminal records repository," "criminal history with the Federal Bureau of Investigation," 
201.5 	and "national criminal record check" refer to a national criminal history record check as 
201.6 	defined in this subdivision.
201.7 		Subd. 14.NETStudy 2.0. "NETStudy 2.0" means the commissioner's system that replaces 
201.8 	both NETStudy and the department's internal background study processing system. NETStudy 
201.9 	2.0 is designed to enhance protection of children and vulnerable adults by improving the 
201.10 	accuracy of background studies through fingerprint-based criminal record checks and 
201.11 	expanding the background studies to include a review of information from the Minnesota 
201.12 	Court Information System and the national crime information database. NETStudy 2.0 is 
201.13 	also designed to increase efficiencies in and the speed of the hiring process by:
201.14 	(1) providing access to and updates from public web-based data related to employment 
201.15 	eligibility;
201.16 	(2) decreasing the need for repeat studies through electronic updates of background 
201.17 	study subjects' criminal records;
201.18 	(3) supporting identity verification using subjects' Social Security numbers and 
201.19 	photographs;
201.20 	(4) using electronic employer notifications; and
201.21 	(5) issuing immediate verification of subjects' eligibility to provide services as more 
201.22 	studies are completed under the NETStudy 2.0 system.
201.23 		Subd. 15.Person. "Person" means a child as defined in subdivision 6 or an adult as 
201.24 	defined in section 245A.02, subdivision 2.
201.25 		Subd. 16.Public law background study. "Public law background study" means a 
201.26 	background study conducted by the Department of Human Services under this chapter. All 
201.27 	data obtained by the commissioner for a background study completed under this chapter 
201.28 	shall be classified as private data.
201.29 		Subd. 17.Reasonable cause. "Reasonable cause" means information or circumstances 
201.30 	exist that provide the commissioner with articulable suspicion that further pertinent 
201.31 	information may exist concerning a subject. The commissioner has reasonable cause to 
201.32 	require a background study when the commissioner has received a report from the subject, 
202.1 	the entity, or a third party indicating that the subject has a history that would disqualify the 
202.2 	individual or that may pose a risk to the health or safety of persons receiving services.
202.3 		Subd. 18.Reasonable cause to require a national criminal history record check. (a) 
202.4 	"Reasonable cause to require a national criminal history record check" means information 
202.5 	or circumstances exist that provide the commissioner with articulable suspicion that further 
202.6 	pertinent information may exist concerning a background study subject that merits conducting 
202.7 	a national criminal history record check on that subject. The commissioner has reasonable 
202.8 	cause to require a national criminal history record check when:
202.9 	(1) information from the Bureau of Criminal Apprehension indicates that the subject is 
202.10 	a multistate offender;
202.11 	(2) information from the Bureau of Criminal Apprehension indicates that multistate 
202.12 	offender status is undetermined;
202.13 	(3) the commissioner has received a report from the subject or a third party indicating 
202.14 	that the subject has a criminal history in a jurisdiction other than Minnesota; or
202.15 	(4) information from the Bureau of Criminal Apprehension for a state-based name and 
202.16 	date of birth background study in which the subject is a minor that indicates that the subject 
202.17 	has a criminal history.
202.18 	(b) In addition to the circumstances described in paragraph (a), the commissioner has 
202.19 	reasonable cause to require a national criminal history record check if the subject is not 
202.20 	currently residing in Minnesota or resided in a jurisdiction other than Minnesota during the 
202.21 	previous five years.
202.22 		Subd. 19.Recurring maltreatment. "Recurring maltreatment" means more than one 
202.23 	incident of maltreatment for which there is a preponderance of evidence that the maltreatment 
202.24 	occurred and that the subject was responsible for the maltreatment.
202.25 		Subd. 20.Results. "Results" means a determination that a study subject is eligible, 
202.26 	disqualified, set aside, granted a variance, or that more time is needed to complete the 
202.27 	background study.
202.28 		Subd. 21.Roster. (a) "Roster" means the electronic method used to identify the entity 
202.29 	or entities required to conduct background studies under this chapter with which a background 
202.30 	subject is affiliated. There are three types of rosters: active roster, inactive roster, and master 
202.31 	roster.
202.32 	(b) "Active roster" means the list of individuals specific to an entity who have been 
202.33 	determined eligible under this chapter to provide services for the entity and who the entity 
203.1 	has identified as affiliated. An individual shall remain on the entity's active roster and is 
203.2 	considered affiliated until the commissioner determines the individual is ineligible or the 
203.3 	entity removes the individual from the entity's active roster.
203.4 	(c) "Inactive roster" means the list maintained by the commissioner of individuals who 
203.5 	are eligible under this chapter to provide services and are not on an active roster. Individuals 
203.6 	shall remain on the inactive roster for no more than 180 consecutive days, unless the 
203.7 	individual submits a written request to the commissioner requesting to remain on the inactive 
203.8 	roster for a longer period of time. Upon the commissioner's receipt of information that may 
203.9 	cause an individual on the inactive roster to be disqualified under this chapter, the 
203.10 	commissioner shall remove the individual from the inactive roster, and if the individual 
203.11 	again seeks a position requiring a background study, the individual shall be required to 
203.12 	complete a new background study.
203.13 	(d) "Master roster" means the list maintained by the commissioner of all individuals 
203.14 	who, as a result of a background study under this chapter, and regardless of affiliation with 
203.15 	an entity, are determined by the commissioner to be eligible to provide services for one or 
203.16 	more entities. The master roster includes all background study subjects on rosters under 
203.17 	paragraphs (b) and (c).
203.18 		Subd. 22.Serious maltreatment. (a) "Serious maltreatment" means sexual abuse, 
203.19 	maltreatment resulting in death, neglect resulting in serious injury which reasonably requires 
203.20 	the care of a physician or advanced practice registered nurse, whether or not the care of a 
203.21 	physician or advanced practice registered nurse was sought, or abuse resulting in serious 
203.22 	injury.
203.23 	(b) For purposes of this definition, "care of a physician or advanced practice registered 
203.24 	nurse" is treatment received or ordered by a physician, physician assistant, advanced practice 
203.25 	registered nurse, or nurse practitioner, but does not include:
203.26 	(1) diagnostic testing, assessment, or observation;
203.27 	(2) the application of, recommendation to use, or prescription solely for a remedy that 
203.28 	is available over the counter without a prescription; or
203.29 	(3) a prescription solely for a topical antibiotic to treat burns when there is no follow-up 
203.30 	appointment.
203.31 	(c) For purposes of this definition, "abuse resulting in serious injury" means: bruises, 
203.32 	bites, skin laceration, or tissue damage; fractures; dislocations; evidence of internal injuries; 
203.33 	head injuries with loss of consciousness; extensive second-degree or third-degree burns and 
204.1 	other burns for which complications are present; extensive second-degree or third-degree 
204.2 	frostbite and other frostbite for which complications are present; irreversible mobility or 
204.3 	avulsion of teeth; injuries to the eyes; ingestion of foreign substances and objects that are 
204.4 	harmful; near drowning; and heat exhaustion or sunstroke.
204.5 	(d) Serious maltreatment includes neglect when it results in criminal sexual conduct 
204.6 	against a child or vulnerable adult.
204.7 		Subd. 23.Subject of a background study. "Subject of a background study" means an 
204.8 	individual on whom a public law background study is required or completed.
204.9 		Subd. 24.Volunteer. "Volunteer" means an individual who provides or seeks to provide 
204.10 	services for an entity without compensation, is affiliated in NETStudy 2.0, and is subject 
204.11 	to oversight by the entity, including but not limited to continuous, direct supervision and 
204.12 	immediate removal from providing direct care services.

204.13 	Sec. 23. [245J.03] PUBLIC LAW BACKGROUND STUDY; INDIVIDUALS TO BE 
204.14 	STUDIED.
204.15 		Subdivision 1.Classification of public law background study data; access to 
204.16 	information. All data obtained by the commissioner for a background study completed 
204.17 	under this chapter shall be classified as private data.
204.18 		Subd. 2.Minnesota Sex Offender Program. The commissioner shall conduct a public 
204.19 	law background study under this chapter for an employee having direct contact with persons 
204.20 	civilly committed to the Minnesota Sex Offender Program operated by the commissioner 
204.21 	under chapters 246B and 253D.

204.22 	Sec. 24. [245J.04] WHEN BACKGROUND STUDY MUST OCCUR.
204.23 		Subdivision 1.Initial studies. (a) An entity in section 245J.03 shall initiate a background 
204.24 	study:
204.25 	(1) for an individual in NETStudy 2.0, upon application for initial license. All license 
204.26 	holders must be on the entity's active roster with a status of eligible, set aside, or variance 
204.27 	granted;
204.28 	(2) for a current or prospective employee in NETStudy 2.0, before the individual will 
204.29 	have direct contact with persons receiving services; and
205.1 	(3) for a volunteer in NETStudy 2.0, before the volunteer will have direct contact with 
205.2 	persons served by the program, if the contact is not under the continuous, direct supervision 
205.3 	by an individual listed in clause (1) or (2).
205.4 	(b) The commissioner is not required to conduct a study of an individual at the time of 
205.5 	reapplication for a license if the individual's background study was completed by the 
205.6 	commissioner of human services and the following conditions are met:
205.7 	(1) a study of the individual was conducted either at the time of initial licensure or when 
205.8 	the individual became affiliated with the license holder;
205.9 	(2) the individual has been continuously affiliated with the license holder since the last 
205.10 	study was conducted; and
205.11 	(3) the last study of the individual was conducted on or after October 1, 1995.
205.12 	(c) Applicants for licensure, license holders, and entities as provided in this chapter must 
205.13 	submit completed background study requests to the commissioner using NETStudy 2.0 
205.14 	before individuals specified in section 245J.03, subdivision 1, begin positions allowing 
205.15 	direct contact in the program.
205.16 	(d) For an individual who is not on the entity's active roster, the entity must initiate a 
205.17 	new background study through NETStudy 2.0 when:
205.18 	(1) an individual returns to a position requiring a background study following an absence 
205.19 	of 120 or more consecutive days; or
205.20 	(2) a program that discontinued providing licensed direct contact services for 120 or 
205.21 	more consecutive days begins to provide direct contact licensed services again.
205.22 	The entity shall maintain a copy of the notification provided to the commissioner under this 
205.23 	paragraph in the program's files. If the individual's disqualification was previously set aside 
205.24 	for the license holder's program and the new background study results in no new information 
205.25 	that indicates the individual may pose a risk of harm to persons receiving services from the 
205.26 	entity, the previous set-aside shall remain in effect.
205.27 	(e) For purposes of this section, a physician licensed under chapter 147 or an advanced 
205.28 	practice registered nurse licensed under chapter 148 who is required to have a background 
205.29 	study under this chapter is considered to be continuously affiliated upon the license holder's 
205.30 	receipt from the commissioner of human services of the physician's or advanced practice 
205.31 	registered nurse's background study results.
206.1 		Subd. 2.Public law background studies; electronic criminal case information 
206.2 	updates; rosters; criteria for eliminating repeat background studies. (a) The 
206.3 	commissioner shall implement the electronic process in NETStudy 2.0 for the regular transfer 
206.4 	of new criminal case information that is added to the Minnesota Court Information System. 
206.5 	The commissioner's system must include for review only information that relates to 
206.6 	individuals who are on the master roster.
206.7 	(b) The commissioner shall develop and implement an online system as a part of 
206.8 	NETStudy 2.0 for entities that initiate background studies under this chapter to access and 
206.9 	maintain records of background studies initiated by that entity. The system must show all 
206.10 	active background study subjects affiliated with that entity and the status of each individual's 
206.11 	background study. Each entity that initiates background studies must use this system to 
206.12 	notify the commissioner of discontinued affiliation for purposes of the processes required 
206.13 	under paragraph (a).
206.14 		Subd. 3.New study required with legal name change. (a) For a background study 
206.15 	completed on an individual required to be studied under section 245J.03, the license holder 
206.16 	or other entity that initiated the background study must initiate a new background study 
206.17 	using NETStudy 2.0 when an individual who is affiliated with the license holder or other 
206.18 	entity undergoes a legal name change.
206.19 	(b) For background studies subject to a fee paid through NETStudy 2.0, the entity that 
206.20 	initiated the study may initiate a new study under paragraph (a) or notify the commissioner 
206.21 	of the name change through a notice to the commissioner.
206.22 	(c) After an entity initiating a background study has paid the applicable fee for the study 
206.23 	and has provided the individual with the privacy notice required under section 245J.05, 
206.24 	subdivision 3, NETStudy 2.0 shall immediately inform the entity whether the individual 
206.25 	requires a background study or whether the individual is immediately eligible to provide 
206.26 	services based on a previous background study. If the individual is immediately eligible, 
206.27 	the entity initiating the background study shall be able to view the information previously 
206.28 	supplied by the individual who is the subject of a background study as required under section 
206.29 	245J.05, subdivision 1, including the individual's photograph taken at the time the individual's 
206.30 	fingerprints were recorded. The commissioner shall not provide any entity initiating a 
206.31 	subsequent background study with information regarding the other entities that initiated 
206.32 	background studies on the subject.
206.33 	(d) Verification that an individual is eligible to provide services based on a previous 
206.34 	background study is dependent on the individual voluntarily providing the individual's 
207.1 	Social Security number to the commissioner at the time each background study is initiated. 
207.2 	When an individual does not provide the individual's Social Security number for the 
207.3 	background study, that study is not transferable and a repeat background study on that 
207.4 	individual is required if the individual seeks a position requiring a background study under 
207.5 	this chapter with another entity.

207.6 	Sec. 25. [245J.05] BACKGROUND STUDY; INFORMATION AND DATA 
207.7 	PROVIDED TO COMMISSIONER.
207.8 		Subdivision 1.Study submitted. The entity with which the background study subject 
207.9 	is seeking affiliation through employment, volunteering, or licensure shall initiate the 
207.10 	background study in NETStudy 2.0.
207.11 		Subd. 2.Individual studied. (a) The individual who is the subject of the background 
207.12 	study must provide the applicant, license holder, or other entity under section 245J.04 with 
207.13 	sufficient information to ensure an accurate study, including:
207.14 	(1) the individual's first, middle, and last name and all other names by which the 
207.15 	individual has been known;
207.16 	(2) current home address, city, and state of residence;
207.17 	(3) current zip code;
207.18 	(4) sex;
207.19 	(5) date of birth;
207.20 	(6) driver's license number or state identification number; and
207.21 	(7) the home address, city, county, and state of residence for the past five years.
207.22 	(b) The subject of a background study shall provide fingerprints and a photograph as 
207.23 	required in subdivision 6.
207.24 		Subd. 3.Entity. (a) The entity initiating a background study as provided in this chapter 
207.25 	shall verify that the information collected under subdivision 1 about an individual who is 
207.26 	the subject of the background study is correct and must provide the information on forms 
207.27 	or in a manner prescribed by the commissioner.
207.28 	(b) The information collected under subdivision 1 about an individual who is the subject 
207.29 	of a completed background study may only be viewable by an entity that initiates a 
207.30 	subsequent background study on that individual under NETStudy 2.0 after the entity has 
208.1 	paid the applicable fee for the study and has provided the individual with the privacy notice 
208.2 	in subdivision 4.
208.3 		Subd. 4.Privacy notice to background study subject. (a) Prior to initiating each 
208.4 	background study, the entity initiating the study must provide the commissioner's privacy 
208.5 	notice to the background study subject required under section 13.04, subdivision 2. The 
208.6 	notice must be available through the commissioner's electronic NETStudy 2.0 system and 
208.7 	shall include information that the individual has a disqualification that has been set aside 
208.8 	for the entity that initiated the study.
208.9 	(b) The background study subject must also be informed that:
208.10 	(1) the subject's fingerprints collected for purposes of completing the background study 
208.11 	under this chapter must not be retained by the Department of Public Safety, the Bureau of 
208.12 	Criminal Apprehension, or the commissioner. The Federal Bureau of Investigation will not 
208.13 	retain background study subjects' fingerprints;
208.14 	(2) the subject's photograph will be retained by the commissioner, and if the subject has 
208.15 	provided the subject's Social Security number for purposes of the background study, the 
208.16 	photograph will be available to prospective employers and agencies initiating background 
208.17 	studies under this chapter to verify the identity of the subject of the background study;
208.18 	(3) the authorized fingerprint collection vendor or vendors shall, for purposes of verifying 
208.19 	the identity of the background study subject, be able to view the identifying information 
208.20 	entered into NETStudy 2.0 by the entity that initiated the background study, but shall not 
208.21 	retain the subject's fingerprints, photograph, or information from NETStudy 2.0. The 
208.22 	authorized fingerprint collection vendor or vendors shall retain no more than the subject's 
208.23 	name and the date and time the subject's fingerprints were recorded and sent, only as 
208.24 	necessary for auditing and billing activities;
208.25 	(4) the commissioner shall provide the subject notice, as required in section 245J.15, 
208.26 	subdivision 1, paragraph (a), when an entity initiates a background study on the individual;
208.27 	(5) the subject may request in writing a report listing the entities that initiated a 
208.28 	background study on the subject as provided in section 245J.15, subdivision 1, paragraph 
208.29 	(b);
208.30 	(6) the subject may request in writing that information used to complete the individual's 
208.31 	background study in NETStudy 2.0 be destroyed if the requirements of section 245J.06, 
208.32 	paragraph (a), are met; and
208.33 	(7) notwithstanding clause (6), the commissioner shall destroy:
209.1 	(i) the subject's photograph after a period of two years when the requirements of section 
209.2 	245J.06, paragraph (c), are met; and
209.3 	(ii) any data collected on a subject under this chapter after a period of two years following 
209.4 	the individual's death as provided in section 245J.06, paragraph (d).
209.5 		Subd. 5.Fingerprint data notification. The commissioner of human services shall 
209.6 	notify all background study subjects under this chapter that the Department of Human 
209.7 	Services, Department of Public Safety, and the Bureau of Criminal Apprehension do not 
209.8 	retain fingerprint data after a background study is completed, and that the Federal Bureau 
209.9 	of Investigation does not retain background study subjects' fingerprints.
209.10 		Subd. 6.Electronic transmission. (a) The commissioner shall implement a secure 
209.11 	system for the electronic transmission of:
209.12 	(1) background study information to the commissioner; and
209.13 	(2) background study results to the license holder.
209.14 	(b) Unless the commissioner has granted a hardship variance under paragraph (c), a 
209.15 	license holder or an applicant must use the electronic transmission system known as 
209.16 	NETStudy or NETStudy 2.0 to submit all requests for background studies to the 
209.17 	commissioner as required by this chapter.
209.18 	(c) A license holder or applicant whose program is located in an area in which high-speed 
209.19 	Internet is inaccessible may request the commissioner to grant a variance to the electronic 
209.20 	transmission requirement.
209.21 	(d) Section 245J.08, subdivision 3, paragraph (c), applies to results transmitted under 
209.22 	this subdivision.
209.23 		Subd. 7.Fingerprints and photograph. (a) Except as provided in paragraph (f), every 
209.24 	subject of a background study must provide the commissioner with a set of the background 
209.25 	study subject's classifiable fingerprints and photograph. The photograph and fingerprints 
209.26 	must be recorded at the same time by the authorized fingerprint collection vendor or vendors 
209.27 	and sent to the commissioner through the commissioner's secure data system described in 
209.28 	section 245J.29, subdivision 1a, paragraph (b).
209.29 	(b) The fingerprints shall be submitted by the commissioner to the Bureau of Criminal 
209.30 	Apprehension and, when specifically required by law, submitted to the Federal Bureau of 
209.31 	Investigation for a national criminal history record check.
210.1 	(c) The fingerprints must not be retained by the Department of Public Safety, the Bureau 
210.2 	of Criminal Apprehension, or the commissioner. The Federal Bureau of Investigation will 
210.3 	not retain background study subjects' fingerprints.
210.4 	(d) The authorized fingerprint collection vendor or vendors shall, for purposes of verifying 
210.5 	the identity of the background study subject, be able to view the identifying information 
210.6 	entered into NETStudy 2.0 by the entity that initiated the background study, but shall not 
210.7 	retain the subject's fingerprints, photograph, or information from NETStudy 2.0. The 
210.8 	authorized fingerprint collection vendor or vendors shall retain no more than the name, date, 
210.9 	and time the subject's fingerprints were recorded and sent, only as necessary for auditing 
210.10 	and billing activities.
210.11 	(e) For any background study conducted under this chapter, the subject shall provide 
210.12 	the commissioner with a set of classifiable fingerprints when the commissioner has reasonable 
210.13 	cause to require a national criminal history record check as defined in section 245J.02, 
210.14 	subdivision 13.
210.15 	(f) A study subject is not required to submit fingerprints and a photograph for a new 
210.16 	study if they currently have an eligible background study status on an active roster or on 
210.17 	the master roster. The entity initiating the new study shall have access to the eligible status 
210.18 	upon completion of the initiation and payment process.
210.19 	(g) The commissioner may inform the entity that initiated the background study under 
210.20 	NETStudy 2.0 of the status of processing of the subject's fingerprints.
210.21 		Subd. 8.Applicant, license holder, and entity. (a) The applicant, license holder, entity 
210.22 	as provided in this chapter, Bureau of Criminal Apprehension, law enforcement agencies, 
210.23 	commissioner of health, and county agencies shall help with the study by giving the 
210.24 	commissioner criminal conviction data and reports about the maltreatment of adults 
210.25 	substantiated under section 626.557 and the maltreatment of minors substantiated under 
210.26 	chapter 260E.
210.27 	(b) If a background study is initiated by an applicant, license holder, or entity as provided 
210.28 	in this chapter, and the applicant, license holder, or entity receives information about the 
210.29 	possible criminal or maltreatment history of an individual who is the subject of the 
210.30 	background study, the applicant, license holder, or entity must immediately provide the 
210.31 	information to the commissioner.
210.32 	(c) The applicant, license holder, entity, or county or other agency must provide written 
210.33 	notice to the individual who is the subject of the background study of the requirements 
210.34 	under this subdivision.
211.1 		Subd. 9.Probation officer and corrections agent. (a) A probation officer or corrections 
211.2 	agent shall notify the commissioner of an individual's conviction if the individual:
211.3 	(1) has been affiliated with a program or facility regulated by the Department of Human 
211.4 	Services or Department of Health, a facility serving children or youth licensed by the 
211.5 	Department of Corrections, or any type of home care agency or provider of personal care 
211.6 	assistance services within the preceding year; and
211.7 	(2) has been convicted of a crime constituting a disqualification under section 245J.14.
211.8 	(b) The commissioner, in consultation with the commissioner of corrections, shall develop 
211.9 	forms and information necessary to implement this subdivision and shall provide the forms 
211.10 	and information to the commissioner of corrections for distribution to local probation officers 
211.11 	and corrections agents.
211.12 	(c) The commissioner shall inform individuals subject to a background study that criminal 
211.13 	convictions for disqualifying crimes shall be reported to the commissioner by the corrections 
211.14 	system.
211.15 	(d) A probation officer, corrections agent, or corrections agency is not civilly or criminally 
211.16 	liable for disclosing or failing to disclose the information required by this subdivision.
211.17 	(e) Upon receipt of disqualifying information, the commissioner shall provide the notice 
211.18 	required under section 245J.17, as appropriate, to entities on whose active rosters the study 
211.19 	subject is affiliated.

211.20 	Sec. 26. [245J.06] DESTRUCTION OF BACKGROUND STUDY SUBJECT 
211.21 	INFORMATION.
211.22 	(a) A background study subject may request in writing to the commissioner that 
211.23 	information used to complete the individual's study in NETStudy 2.0 be destroyed if the 
211.24 	individual:
211.25 	(1) has not been affiliated with any entity for the previous two years; and
211.26 	(2) has no current disqualifying characteristic.
211.27 	(b) After receiving the request and verifying the information in paragraph (a), the 
211.28 	commissioner shall destroy the information used to complete the subject's background study 
211.29 	and shall keep a record of the subject's name and a notation of the date that the information 
211.30 	was destroyed.
212.1 	(c) When a previously studied individual has not been on the master roster for two years, 
212.2 	the commissioner shall destroy the photographic image of the individual obtained under 
212.3 	section 245J.05, subdivision 7, paragraph (a).
212.4 	(d) Any data collected on an individual under this chapter that is maintained by the 
212.5 	commissioner that has not been destroyed according to paragraph (b) or (c) shall be destroyed 
212.6 	when two years have elapsed from the individual's actual death that is reported to the 
212.7 	commissioner or when 90 years have elapsed since the individual's birth except when readily 
212.8 	available data indicate that the individual is still living.

212.9 	Sec. 27. [245J.07] STUDY SUBJECT AFFILIATED WITH MULTIPLE 
212.10 	FACILITIES.
212.11 	(a) Subject to the conditions in paragraph (c), when a license holder, applicant, or other 
212.12 	entity owns multiple programs or services that are licensed by the same agency, only one 
212.13 	background study is required for an individual who provides direct contact services in one 
212.14 	or more of the licensed programs or services if:
212.15 	(1) the license holder designates one individual with one address and telephone number 
212.16 	as the person to receive sensitive background study information for the multiple licensed 
212.17 	programs or services that depend on the same background study; and
212.18 	(2) the individual designated to receive the sensitive background study information is 
212.19 	capable of determining, upon request of the department, whether a background study subject 
212.20 	is providing direct contact services in one or more of the license holder's programs or services 
212.21 	and, if so, at which location or locations.
212.22 	(b) When a license holder maintains background study compliance for multiple licensed 
212.23 	programs according to paragraph (a), and one or more of the licensed programs closes, the 
212.24 	license holder shall immediately notify the commissioner which staff must be transferred 
212.25 	to an active license so that the background studies can be electronically paired with the 
212.26 	license holder's active program.
212.27 	(c) For an entity operating under NETStudy 2.0, the entity's active roster must be the 
212.28 	system used to document when a background study subject is affiliated with multiple entities. 
212.29 	For a background study to be transferable:
212.30 	(1) the background study subject must be on and moving to a roster for which the person 
212.31 	designated to receive sensitive background study information is the same; and
212.32 	(2) the same entity must own or legally control both the roster from which the transfer 
212.33 	is occurring and the roster to which the transfer is occurring. For an entity that holds or 
213.1 	controls multiple entities, there must be a common highest level entity that has a legally 
213.2 	identifiable structure that can be verified through records available from the secretary of 
213.3 	state.

213.4 	Sec. 28. [245J.08] BACKGROUND STUDY; COMMISSIONER REVIEWS.
213.5 		Subdivision 1.Background studies conducted by Department of Human Services. (a) 
213.6 	For a background study conducted under this chapter, the commissioner shall review:
213.7 	(1) information related to findings of maltreatment of vulnerable adults that has been 
213.8 	received by the commissioner as required under section 626.557, subdivision 9c, paragraph 
213.9 	(j);
213.10 	(2) information related to findings of maltreatment of minors that has been received by 
213.11 	the commissioner as required under chapter 260E;
213.12 	(3) the commissioner's records relating to maltreatment in programs licensed by the 
213.13 	Department of Human Services and the Department of Health;
213.14 	(4) information from juvenile courts as required in subdivision 4 when there is reasonable 
213.15 	cause;
213.16 	(5) criminal history information from the Bureau of Criminal Apprehension, including 
213.17 	information regarding a background study subject's registration in Minnesota as a predatory 
213.18 	offender under section 243.166; and
213.19 	(6) information received as a result of a national criminal history record check, as defined 
213.20 	in section 245J.02, subdivision 13, when the commissioner has reasonable cause for a 
213.21 	national criminal history record check as defined under section 245J.02, subdivision 16.
213.22 	(b) Notwithstanding expungement by a court, the commissioner may consider information 
213.23 	obtained under this section, unless the commissioner received notice of the petition for 
213.24 	expungement and the court order for expungement is directed specifically to the 
213.25 	commissioner.
213.26 	(c) The commissioner shall also review criminal case information received according 
213.27 	to section 245J.04, subdivision 2, from the Minnesota Court Information System or Minnesota 
213.28 	Government Access that relates to individuals who are being studied or have already been 
213.29 	studied under this chapter and who remain affiliated with the agency that initiated the 
213.30 	background study.
213.31 		Subd. 2.Arrest and investigative information. (a) For any background study completed 
213.32 	under this chapter, if the commissioner has reasonable cause to believe the information is 
214.1 	pertinent to the potential disqualification of an individual, the commissioner also may review 
214.2 	arrest and investigative information from:
214.3 	(1) the Bureau of Criminal Apprehension;
214.4 	(2) the commissioners of health and human services;
214.5 	(3) a county attorney;
214.6 	(4) a county sheriff;
214.7 	(5) a county agency;
214.8 	(6) a local chief of police;
214.9 	(7) other states;
214.10 	(8) the courts;
214.11 	(9) the Federal Bureau of Investigation;
214.12 	(10) the National Criminal Records Repository; and
214.13 	(11) criminal records from other states.
214.14 	(b) Except when specifically required by law, the commissioner is not required to conduct 
214.15 	more than one review of a subject's records from a national criminal history record check 
214.16 	if a review of the subject's criminal history with the Federal Bureau of Investigation has 
214.17 	already been completed by the commissioner and there has been no break in the subject's 
214.18 	affiliation with the entity that initiated the background study.
214.19 		Subd. 3.Juvenile court records. (a) For a background study conducted by the 
214.20 	Department of Human Services, the commissioner shall review records from the juvenile 
214.21 	courts for an individual studied under this chapter when the commissioner has reasonable 
214.22 	cause.
214.23 	(b) The juvenile courts shall help with the study by giving the commissioner existing 
214.24 	juvenile court records relating to delinquency proceedings held on individuals studied under 
214.25 	this chapter when requested pursuant to this subdivision.
214.26 	(c) For purposes of this chapter, a finding that a delinquency petition is proven in juvenile 
214.27 	court shall be considered a conviction in state district court.
214.28 	(d) Juvenile courts shall provide orders of involuntary and voluntary termination of 
214.29 	parental rights under section 260C.301 to the commissioner upon request for purposes of 
214.30 	conducting a background study under this chapter.

215.1 	Sec. 29. [245J.09] FAILURE OR REFUSAL TO COOPERATE WITH 
215.2 	BACKGROUND STUDY.
215.3 		Subdivision 1.Disqualification; licensing action. An applicant's, license holder's, or 
215.4 	other entity's failure or refusal to cooperate with the commissioner, including failure to 
215.5 	provide additional information required under section 245J.05, is reasonable cause to 
215.6 	disqualify a subject, deny a license application, or immediately suspend or revoke a license 
215.7 	or registration.
215.8 		Subd. 2.Employment action. An individual's failure or refusal to cooperate with the 
215.9 	background study is just cause for denying or terminating employment of the individual if 
215.10 	the individual's failure or refusal to cooperate could cause the applicant's application to be 
215.11 	denied or the license holder's license to be immediately suspended or revoked.

215.12 	Sec. 30. [245J.10] BACKGROUND STUDY; FEES.
215.13 		Subdivision 1.Expenses. Section 181.645 does not apply to background studies 
215.14 	completed under this chapter.
215.15 		Subd. 2.Background study fees. (a) The commissioner shall recover the cost of 
215.16 	background studies. Except as otherwise provided in subdivisions 3 and 4, the fees collected 
215.17 	under this section shall be appropriated to the commissioner for the purpose of conducting 
215.18 	background studies under this chapter. Fees under this section are charges under section 
215.19 	16A.1283, paragraph (b), clause (3).
215.20 	(b) Background study fees may include:
215.21 	(1) a fee to compensate the commissioner's authorized fingerprint collection vendor or 
215.22 	vendors for obtaining and processing a background study subject's classifiable fingerprints 
215.23 	and photograph pursuant to subdivision 3; and
215.24 	(2) a separate fee under subdivision 3 to complete a review of background-study-related 
215.25 	records as authorized under this chapter.
215.26 	(c) Fees charged under paragraph (b) may be paid in whole or in part when authorized 
215.27 	by law by a state agency or board; by state court administration; by a service provider, 
215.28 	employer, license holder, or other entity that initiates the background study; by the 
215.29 	commissioner or other organization with duly appropriated funds; by a background study 
215.30 	subject; or by some combination of these sources.
215.31 		Subd. 3.Fingerprint and photograph processing fees. The commissioner shall enter 
215.32 	into a contract with a qualified vendor or vendors to obtain and process a background study 
216.1 	subject's classifiable fingerprints and photograph as required by section 245J.05. The 
216.2 	commissioner may, at their discretion, directly collect fees and reimburse the commissioner's 
216.3 	authorized fingerprint collection vendor for the vendor's services or require the vendor to 
216.4 	collect the fees. The authorized vendor is responsible for reimbursing the vendor's 
216.5 	subcontractors at a rate specified in the contract with the commissioner.
216.6 		Subd. 4.National criminal history record check fees. The commissioner may increase 
216.7 	background study fees as necessary, commensurate with an increase in the national criminal 
216.8 	history record check fee. The commissioner shall report any fee increase under this 
216.9 	subdivision to the legislature during the legislative session following the fee increase, so 
216.10 	that the legislature may consider adoption of the fee increase into statute. By July 1 of every 
216.11 	year, background study fees shall be set at the amount adopted by the legislature under this 
216.12 	section.
216.13 		Subd. 5.Minnesota Sex Offender Program. The commissioner shall recover the cost 
216.14 	of background studies for the Minnesota Sex Offender Program required under section 
216.15 	245J.03, subdivision 1, through a fee of no more than $42 per study charged to the entity 
216.16 	submitting the study. The fees collected under this subdivision are appropriated to the 
216.17 	commissioner for the purpose of conducting background studies.

216.18 	Sec. 31. [245J.11] BACKGROUND STUDY PROCESSING.
216.19 		Subdivision 1.Completion of background study. Upon receipt of the background 
216.20 	study forms from an entity required to initiate a background study under this chapter, the 
216.21 	commissioner shall complete the background study and provide the notice required under 
216.22 	section 245J.15, subdivision 1.
216.23 		Subd. 2.Activities pending completion of background study. (a) The subject of a 
216.24 	background study may not perform any activity requiring a background study under 
216.25 	paragraph (c) until the commissioner has issued one of the notices under paragraph (b).
216.26 	(b) Notices from the commissioner required prior to activity under paragraph (c) include:
216.27 	(1) a notice of the study results under section 245J.15 stating that:
216.28 	(i) the individual is not disqualified; or
216.29 	(ii) more time is needed to complete the study but the individual is not required to be 
216.30 	removed from direct contact or access to people receiving services prior to completion of 
216.31 	the study as provided under section 245J.15, subdivision 1, paragraph (b) or (c). The notice 
216.32 	that more time is needed to complete the study must also indicate whether the individual is 
217.1 	required to be under continuous direct supervision prior to completion of the background 
217.2 	study;
217.3 	(2) a notice that a disqualification has been set aside under section 245J.21; or
217.4 	(3) a notice that a variance has been granted related to the individual under section 
217.5 	245J.27.
217.6 	(c) Activities prohibited prior to receipt of notice under paragraph (b) include:
217.7 	(1) being issued a license; or
217.8 	(2) providing direct contact services to persons served by a program unless the subject 
217.9 	is under continuous direct supervision.
217.10 		Subd. 3.Other state information. If the commissioner has not received criminal, sex 
217.11 	offender, or maltreatment information from another state that is required to be reviewed 
217.12 	under this chapter within ten days of requesting the information, and the lack of the 
217.13 	information is the only reason that a notice is issued under subdivision 2, paragraph (b), 
217.14 	clause (1), item (ii), the commissioner may issue a notice under subdivision 2, paragraph 
217.15 	(b), clause (1), item (i). The commissioner may take action on information received from 
217.16 	other states after issuing a notice under subdivision 2, paragraph (b), clause (1), item (ii).

217.17 	Sec. 32. [245J.12] DISQUALIFICATION.
217.18 		Subdivision 1.Disqualification from direct contact. (a) The commissioner shall 
217.19 	disqualify an individual who is the subject of a background study from any position allowing 
217.20 	direct contact with persons receiving services from the entity identified in section 245J.03, 
217.21 	upon receipt of information showing, or when a background study completed under this 
217.22 	chapter shows any of the following:
217.23 	(1) a conviction of, admission to, or Alford plea to one or more crimes listed in section 
217.24 	245J.13, regardless of whether the conviction or admission is a felony, gross misdemeanor, 
217.25 	or misdemeanor level crime;
217.26 	(2) a preponderance of the evidence indicates the individual has committed an act or 
217.27 	acts that meet the definition of any of the crimes listed in section 245J.13, regardless of 
217.28 	whether the preponderance of the evidence is for a felony, gross misdemeanor, or 
217.29 	misdemeanor level crime;
217.30 	(3) an investigation results in an administrative determination listed under section 245J.13, 
217.31 	subdivision 4, paragraph (b); or
218.1 	(4) involuntary termination of parental rights issued under subdivision 3 or section 
218.2 	260C.301, subdivision 1, paragraph (b).
218.3 	(b) No individual who is disqualified following a background study under this chapter 
218.4 	may be retained in a position involving direct contact with persons served by a program or 
218.5 	entity identified in section 245J.03, unless the commissioner has provided written notice 
218.6 	under section 245J.15 stating that:
218.7 	(1) the individual may remain in direct contact during the period in which the individual 
218.8 	may request reconsideration as provided in section 245J.19, subdivision 2;
218.9 	(2) the commissioner has set aside the individual's disqualification for that entity as 
218.10 	provided in section 245J.20, subdivision 4; or
218.11 	(3) the license holder has been granted a variance for the disqualified individual under 
218.12 	section 245J.27.
218.13 		Subd. 2.Disqualification from access. (a) If an individual who is studied under this 
218.14 	chapter is disqualified from direct contact under subdivision 1, the commissioner shall also 
218.15 	disqualify the individual from access to a person receiving services from the entity.
218.16 	(b) No individual who is disqualified following a background study under this chapter 
218.17 	may be allowed access to persons served by the program unless the commissioner has 
218.18 	provided written notice under section 245J.15 stating that:
218.19 	(1) the individual may remain in direct contact during the period in which the individual 
218.20 	may request reconsideration as provided in section 245J.19, subdivision 2;
218.21 	(2) the commissioner has set aside the individual's disqualification for that entity as 
218.22 	provided in section 245J.20, subdivision 4; or
218.23 	(3) the license holder has been granted a variance for the disqualified individual under 
218.24 	section 245J.27.

218.25 	Sec. 33. [245J.13] DISQUALIFYING CRIMES OR CONDUCT.
218.26 		Subdivision 1.Permanent disqualification. (a) An individual is disqualified under 
218.27 	section 245J.12 if: (1) regardless of how much time has passed since the discharge of the 
218.28 	sentence imposed, if any, for the offense; and (2) unless otherwise specified, regardless of 
218.29 	the level of the offense, the individual has committed any of the following offenses: sections 
218.30 	243.166 (violation of predatory offender registration law); 609.185 (murder in the first 
218.31 	degree); 609.19 (murder in the second degree); 609.195 (murder in the third degree); 609.20 
218.32 	(manslaughter in the first degree); 609.205 (manslaughter in the second degree); a felony 
219.1 	offense under 609.221 or 609.222 (assault in the first or second degree); a felony offense 
219.2 	under sections 609.2242 and 609.2243 (domestic assault), spousal abuse, child abuse or 
219.3 	neglect, or a crime against children; 609.2247 (domestic assault by strangulation); 609.228 
219.4 	(great bodily harm caused by distribution of drugs); 609.245 (aggravated robbery); 609.25 
219.5 	(kidnapping); 609.2661 (murder of an unborn child in the first degree); 609.2662 (murder 
219.6 	of an unborn child in the second degree); 609.2663 (murder of an unborn child in the third 
219.7 	degree); 609.322 (solicitation, inducement, and promotion of prostitution); 609.324, 
219.8 	subdivision 1 (other prohibited acts); 609.342 (criminal sexual conduct in the first degree); 
219.9 	609.343 (criminal sexual conduct in the second degree); 609.344 (criminal sexual conduct 
219.10 	in the third degree); 609.345 (criminal sexual conduct in the fourth degree); 609.3451 
219.11 	(criminal sexual conduct in the fifth degree); 609.3453 (criminal sexual predatory conduct); 
219.12 	609.3458 (sexual extortion); 609.352 (solicitation of children to engage in sexual conduct); 
219.13 	609.365 (incest); a felony offense under 609.377 (malicious punishment of a child); a felony 
219.14 	offense under 609.378 (neglect or endangerment of a child); 609.561 (arson in the first 
219.15 	degree); 609.66, subdivision 1e (drive-by shooting); 609.749, subdivision 3, 4, or 5 
219.16 	(felony-level harassment or stalking); 609.855, subdivision 5 (shooting at or in a public 
219.17 	transit vehicle or facility); 617.23, subdivision 2, clause (1), or subdivision 3, clause (1) 
219.18 	(indecent exposure involving a minor); 617.246 (use of minors in sexual performance 
219.19 	prohibited); or 617.247 (possession of pictorial representations of minors).
219.20 	(b) An individual's aiding and abetting, attempt, or conspiracy to commit any of the 
219.21 	offenses listed in paragraph (a), as each of these offenses is defined in Minnesota Statutes, 
219.22 	permanently disqualifies the individual under section 245J.12.
219.23 	(c) An individual's offense in any other state or country, where the elements of the offense 
219.24 	are substantially similar to any of the offenses listed in paragraph (a), permanently disqualifies 
219.25 	the individual under section 245J.12.
219.26 	(d) When a disqualification is based on a judicial determination other than a conviction, 
219.27 	the disqualification period begins from the date of the court order. When a disqualification 
219.28 	is based on an admission, the disqualification period begins from the date of an admission 
219.29 	in court. When a disqualification is based on an Alford Plea, the disqualification period 
219.30 	begins from the date the Alford Plea is entered in court. When a disqualification is based 
219.31 	on a preponderance of evidence of a disqualifying act, the disqualification date begins from 
219.32 	the date of the dismissal, the date of discharge of the sentence imposed for a conviction for 
219.33 	a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.
219.34 	(e) If the individual studied commits one of the offenses listed in paragraph (a) that is 
219.35 	specified as a felony-level only offense, but the sentence or level of offense is a gross 
220.1 	misdemeanor or misdemeanor, the individual is disqualified, but the disqualification 
220.2 	look-back period for the offense is the period applicable to gross misdemeanor or 
220.3 	misdemeanor offenses.
220.4 		Subd. 2.15-year disqualification. (a) An individual is disqualified under section 245J.12 
220.5 	if: (1) less than 15 years have passed since the discharge of the sentence imposed, if any, 
220.6 	for the offense; and (2) the individual has committed a felony-level violation of any of the 
220.7 	following offenses: sections 256.98 (wrongfully obtaining assistance); 268.182 (fraud); 
220.8 	393.07, subdivision 10, paragraph (c) (federal SNAP fraud); 609.165 (felon ineligible to 
220.9 	possess firearm); 609.2112, 609.2113, or 609.2114 (criminal vehicular homicide or injury); 
220.10 	609.215 (suicide); 609.223 or 609.2231 (assault in the third or fourth degree); repeat offenses 
220.11 	under 609.224 (assault in the fifth degree); 609.229 (crimes committed for benefit of a 
220.12 	gang); 609.2325 (criminal abuse of a vulnerable adult); 609.2335 (financial exploitation of 
220.13 	a vulnerable adult); 609.235 (use of drugs to injure or facilitate crime); 609.24 (simple 
220.14 	robbery); 609.255 (false imprisonment); 609.2664 (manslaughter of an unborn child in the 
220.15 	first degree); 609.2665 (manslaughter of an unborn child in the second degree); 609.267 
220.16 	(assault of an unborn child in the first degree); 609.2671 (assault of an unborn child in the 
220.17 	second degree); 609.268 (injury or death of an unborn child in the commission of a crime); 
220.18 	609.27 (coercion); 609.275 (attempt to coerce); 609.466 (medical assistance fraud); 609.495 
220.19 	(aiding an offender); 609.498, subdivision 1 or 1b (aggravated first-degree or first-degree 
220.20 	tampering with a witness); 609.52 (theft); 609.521 (possession of shoplifting gear); 609.525 
220.21 	(bringing stolen goods into Minnesota); 609.527 (identity theft); 609.53 (receiving stolen 
220.22 	property); 609.535 (issuance of dishonored checks); 609.562 (arson in the second degree); 
220.23 	609.563 (arson in the third degree); 609.582 (burglary); 609.59 (possession of burglary 
220.24 	tools); 609.611 (insurance fraud); 609.625 (aggravated forgery); 609.63 (forgery); 609.631 
220.25 	(check forgery; offering a forged check); 609.635 (obtaining signature by false pretense); 
220.26 	609.66 (dangerous weapons); 609.67 (machine guns and short-barreled shotguns); 609.687 
220.27 	(adulteration); 609.71 (riot); 609.713 (terroristic threats); 609.82 (fraud in obtaining credit); 
220.28 	609.821 (financial transaction card fraud); 617.23 (indecent exposure), not involving a 
220.29 	minor; repeat offenses under 617.241 (obscene materials and performances; distribution 
220.30 	and exhibition prohibited; penalty); 624.713 (certain persons not to possess firearms); chapter 
220.31 	152 (drugs; controlled substance); or Minnesota Statutes 2012, section 609.21; or a 
220.32 	felony-level conviction involving alcohol or drug use.
220.33 	(b) An individual is disqualified under section 245J.12 if less than 15 years has passed 
220.34 	since the individual's aiding and abetting, attempt, or conspiracy to commit any of the 
220.35 	offenses listed in paragraph (a), as each of these offenses is defined in Minnesota Statutes.
221.1 	(c) An individual is disqualified under section 245J.12 if less than 15 years has passed 
221.2 	since the termination of the individual's parental rights under section 260C.301, subdivision 
221.3 	1, paragraph (b), or subdivision 3.
221.4 	(d) An individual is disqualified under section 245J.12 if less than 15 years has passed 
221.5 	since the discharge of the sentence imposed for an offense in any other state or country, the 
221.6 	elements of which are substantially similar to the elements of the offenses listed in paragraph 
221.7 	(a).
221.8 	(e) If the individual studied commits one of the offenses listed in paragraph (a), but the 
221.9 	sentence or level of offense is a gross misdemeanor or misdemeanor, the individual is 
221.10 	disqualified but the disqualification look-back period for the offense is the period applicable 
221.11 	to the gross misdemeanor or misdemeanor disposition.
221.12 	(f) When a disqualification is based on a judicial determination other than a conviction, 
221.13 	the disqualification period begins from the date of the court order. When a disqualification 
221.14 	is based on an admission, the disqualification period begins from the date of an admission 
221.15 	in court. When a disqualification is based on an Alford Plea, the disqualification period 
221.16 	begins from the date the Alford Plea is entered in court. When a disqualification is based 
221.17 	on a preponderance of evidence of a disqualifying act, the disqualification date begins from 
221.18 	the date of the dismissal, the date of discharge of the sentence imposed for a conviction for 
221.19 	a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.
221.20 		Subd. 3.Ten-year disqualification. (a) An individual is disqualified under section 
221.21 	245J.12 if: (1) less than ten years have passed since the discharge of the sentence imposed, 
221.22 	if any, for the offense; and (2) the individual has committed a gross misdemeanor-level 
221.23 	violation of any of the following offenses: sections 256.98 (wrongfully obtaining assistance); 
221.24 	268.182 (fraud); 393.07, subdivision 10, paragraph (c) (federal SNAP fraud); 609.2112, 
221.25 	609.2113, or 609.2114 (criminal vehicular homicide or injury); 609.221 or 609.222 (assault 
221.26 	in the first or second degree); 609.223 or 609.2231 (assault in the third or fourth degree); 
221.27 	609.224 (assault in the fifth degree); 609.224, subdivision 2, paragraph (c) (assault in the 
221.28 	fifth degree by a caregiver against a vulnerable adult); 609.2242 and 609.2243 (domestic 
221.29 	assault); 609.23 (mistreatment of persons confined); 609.231 (mistreatment of residents or 
221.30 	patients); 609.2325 (criminal abuse of a vulnerable adult); 609.233 (criminal neglect of a 
221.31 	vulnerable adult); 609.2335 (financial exploitation of a vulnerable adult); 609.234 (failure 
221.32 	to report maltreatment of a vulnerable adult); 609.265 (abduction); 609.275 (attempt to 
221.33 	coerce); 609.324, subdivision 1a (other prohibited acts; minor engaged in prostitution); 
221.34 	609.33 (disorderly house); 609.377 (malicious punishment of a child); 609.378 (neglect or 
221.35 	endangerment of a child); 609.466 (medical assistance fraud); 609.52 (theft); 609.525 
222.1 	(bringing stolen goods into Minnesota); 609.527 (identity theft); 609.53 (receiving stolen 
222.2 	property); 609.535 (issuance of dishonored checks); 609.582 (burglary); 609.59 (possession 
222.3 	of burglary tools); 609.611 (insurance fraud); 609.631 (check forgery; offering a forged 
222.4 	check); 609.66 (dangerous weapons); 609.71 (riot); 609.72, subdivision 3 (disorderly conduct 
222.5 	against a vulnerable adult); repeat offenses under 609.746 (interference with privacy); 
222.6 	609.749, subdivision 2 (harassment); 609.82 (fraud in obtaining credit); 609.821 (financial 
222.7 	transaction card fraud); 617.23 (indecent exposure), not involving a minor; 617.241 (obscene 
222.8 	materials and performances); 617.243 (indecent literature, distribution); 617.293 (harmful 
222.9 	materials; dissemination and display to minors prohibited); or Minnesota Statutes 2012, 
222.10 	section 609.21; or violation of an order for protection under section 518B.01, subdivision 
222.11 	14.
222.12 	(b) An individual is disqualified under section 245J.12 if less than ten years has passed 
222.13 	since the individual's aiding and abetting, attempt, or conspiracy to commit any of the 
222.14 	offenses listed in paragraph (a), as each of these offenses is defined in Minnesota Statutes.
222.15 	(c) An individual is disqualified under section 245J.12 if less than ten years has passed 
222.16 	since the discharge of the sentence imposed for an offense in any other state or country, the 
222.17 	elements of which are substantially similar to the elements of any of the offenses listed in 
222.18 	paragraph (a).
222.19 	(d) If the individual studied commits one of the offenses listed in paragraph (a), but the 
222.20 	sentence or level of offense is a misdemeanor disposition, the individual is disqualified but 
222.21 	the disqualification lookback period for the offense is the period applicable to misdemeanors.
222.22 	(e) When a disqualification is based on a judicial determination other than a conviction, 
222.23 	the disqualification period begins from the date of the court order. When a disqualification 
222.24 	is based on an admission, the disqualification period begins from the date of an admission 
222.25 	in court. When a disqualification is based on an Alford Plea, the disqualification period 
222.26 	begins from the date the Alford Plea is entered in court. When a disqualification is based 
222.27 	on a preponderance of evidence of a disqualifying act, the disqualification date begins from 
222.28 	the date of the dismissal, the date of discharge of the sentence imposed for a conviction for 
222.29 	a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.
222.30 		Subd. 4.Seven-year disqualification. (a) An individual is disqualified under section 
222.31 	245J.12 if: (1) less than seven years has passed since the discharge of the sentence imposed, 
222.32 	if any, for the offense; and (2) the individual has committed a misdemeanor-level violation 
222.33 	of any of the following offenses: sections 256.98 (wrongfully obtaining assistance); 268.182 
222.34 	(fraud); 393.07, subdivision 10, paragraph (c) (federal SNAP fraud); 609.2112, 609.2113, 
223.1 	or 609.2114 (criminal vehicular homicide or injury); 609.221 (assault in the first degree); 
223.2 	609.222 (assault in the second degree); 609.223 (assault in the third degree); 609.2231 
223.3 	(assault in the fourth degree); 609.224 (assault in the fifth degree); 609.2242 (domestic 
223.4 	assault); 609.2335 (financial exploitation of a vulnerable adult); 609.234 (failure to report 
223.5 	maltreatment of a vulnerable adult); 609.2672 (assault of an unborn child in the third degree); 
223.6 	609.27 (coercion); violation of an order for protection under 609.3232 (protective order 
223.7 	authorized; procedures; penalties); 609.466 (medical assistance fraud); 609.52 (theft); 
223.8 	609.525 (bringing stolen goods into Minnesota); 609.527 (identity theft); 609.53 (receiving 
223.9 	stolen property); 609.535 (issuance of dishonored checks); 609.611 (insurance fraud); 609.66 
223.10 	(dangerous weapons); 609.665 (spring guns); 609.746 (interference with privacy); 609.79 
223.11 	(obscene or harassing telephone calls); 609.795 (letter, telegram, or package; opening; 
223.12 	harassment); 609.82 (fraud in obtaining credit); 609.821 (financial transaction card fraud); 
223.13 	617.23 (indecent exposure), not involving a minor; 617.293 (harmful materials; dissemination 
223.14 	and display to minors prohibited); or Minnesota Statutes 2012, section 609.21; or violation 
223.15 	of an order for protection under section 518B.01 (Domestic Abuse Act).
223.16 	(b) An individual is disqualified under section 245J.12 if less than seven years has passed 
223.17 	since a determination or disposition of the individual's:
223.18 	(1) failure to make required reports under section 260E.06 or 626.557, subdivision 3, 
223.19 	for incidents in which: (i) the final disposition under section 626.557 or chapter 260E was 
223.20 	substantiated maltreatment, and (ii) the maltreatment was recurring or serious; or
223.21 	(2) substantiated serious or recurring maltreatment of a minor under chapter 260E, a 
223.22 	vulnerable adult under section 626.557, or serious or recurring maltreatment in any other 
223.23 	state, the elements of which are substantially similar to the elements of maltreatment under 
223.24 	section 626.557 or chapter 260E for which: (i) there is a preponderance of evidence that 
223.25 	the maltreatment occurred, and (ii) the subject was responsible for the maltreatment.
223.26 	(c) An individual is disqualified under section 245J.12 if less than seven years has passed 
223.27 	since the individual's aiding and abetting, attempt, or conspiracy to commit any of the 
223.28 	offenses listed in paragraphs (a) and (b), as each of these offenses is defined in Minnesota 
223.29 	Statutes.
223.30 	(d) An individual is disqualified under section 245J.12 if less than seven years has passed 
223.31 	since the discharge of the sentence imposed for an offense in any other state or country, the 
223.32 	elements of which are substantially similar to the elements of any of the offenses listed in 
223.33 	paragraphs (a) and (b).
224.1 	(e) When a disqualification is based on a judicial determination other than a conviction, 
224.2 	the disqualification period begins from the date of the court order. When a disqualification 
224.3 	is based on an admission, the disqualification period begins from the date of an admission 
224.4 	in court. When a disqualification is based on an Alford Plea, the disqualification period 
224.5 	begins from the date the Alford Plea is entered in court. When a disqualification is based 
224.6 	on a preponderance of evidence of a disqualifying act, the disqualification date begins from 
224.7 	the date of the dismissal, the date of discharge of the sentence imposed for a conviction for 
224.8 	a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.
224.9 	(f) An individual is disqualified under section 245J.12 if less than seven years has passed 
224.10 	since the individual was disqualified under section 256.98, subdivision 8.

224.11 	Sec. 34. [245J.14] DISQUALIFIED INDIVIDUAL'S RISK OF HARM.
224.12 		Subdivision 1.Determining immediate risk of harm. (a) If the commissioner determines 
224.13 	that the individual studied has a disqualifying characteristic, the commissioner shall review 
224.14 	the information immediately available and make a determination as to the subject's immediate 
224.15 	risk of harm to persons served by the program where the individual studied will have direct 
224.16 	contact with, or access to, people receiving services.
224.17 	(b) The commissioner shall consider all relevant information available, including the 
224.18 	following factors in determining the immediate risk of harm:
224.19 	(1) the recency of the disqualifying characteristic;
224.20 	(2) the recency of discharge from probation for the crimes;
224.21 	(3) the number of disqualifying characteristics;
224.22 	(4) the intrusiveness or violence of the disqualifying characteristic;
224.23 	(5) the vulnerability of the victim involved in the disqualifying characteristic;
224.24 	(6) the similarity of the victim to the persons served by the program where the individual 
224.25 	studied will have direct contact;
224.26 	(7) whether the individual has a disqualification from a previous background study that 
224.27 	has not been set aside;
224.28 	(8) if the individual has a disqualification which may not be set aside because it is a 
224.29 	permanent bar under section 245J.22, the commissioner may order the immediate removal 
224.30 	of the individual from any position allowing direct contact with, or access to, persons 
224.31 	receiving services from the entity; and
225.1 	(c) If the commissioner has reason to believe, based on arrest information or an active 
225.2 	maltreatment investigation, that an individual poses an imminent risk of harm to persons 
225.3 	receiving services, the commissioner may order that the person be continuously supervised 
225.4 	or immediately removed pending the conclusion of the maltreatment investigation or criminal 
225.5 	proceedings.
225.6 		Subd. 2.Findings. (a) After evaluating the information immediately available under 
225.7 	subdivision 1, the commissioner may have reason to believe one of the following:
225.8 	(1) the individual poses an imminent risk of harm to persons served by the program 
225.9 	where the individual studied will have direct contact or access to persons served by the 
225.10 	entity or where the individual studied will work;
225.11 	(2) the individual poses a risk of harm requiring continuous, direct supervision while 
225.12 	providing direct contact services during the period in which the subject may request a 
225.13 	reconsideration; or
225.14 	(3) the individual does not pose an imminent risk of harm or a risk of harm requiring 
225.15 	continuous, direct supervision while providing direct contact services during the period in 
225.16 	which the subject may request a reconsideration.
225.17 	(b) After determining an individual's risk of harm under this section, the commissioner 
225.18 	must notify the subject of the background study and the applicant or license holder as 
225.19 	required under section 245J.15.

225.20 	Sec. 35. [245J.15] NOTICE OF BACKGROUND STUDY RESULTS.
225.21 		Subdivision 1.Time frame for notice of study results and auditing system access. (a) 
225.22 	Within three working days after the commissioner's receipt of a request for a background 
225.23 	study submitted through the commissioner's NETStudy 2.0 system, the commissioner shall 
225.24 	notify the background study subject and the entity that submitted the study in writing or by 
225.25 	electronic transmission of the results of the study or that more time is needed to complete 
225.26 	the study. The notice to the individual shall include the identity of the entity that initiated 
225.27 	the background study.
225.28 	(b) Before being provided access to NETStudy 2.0, the entity shall sign an 
225.29 	acknowledgment of responsibilities form developed by the commissioner that includes 
225.30 	identifying the sensitive background study information person, who must be an employee 
225.31 	of the entity. All queries to NETStudy 2.0 are electronically recorded and subject to audit 
225.32 	by the commissioner. The electronic record shall identify the specific user. A background 
226.1 	study subject may request in writing to the commissioner a report listing the entities that 
226.2 	initiated a background study on the individual.
226.3 	(c) When the commissioner has completed a prior background study on an individual 
226.4 	that resulted in an order for immediate removal and more time is necessary to complete a 
226.5 	subsequent study, the notice that more time is needed that is issued under paragraph (a) 
226.6 	shall include an order for immediate removal of the individual from any position allowing 
226.7 	direct contact with or access to people receiving services.
226.8 		Subd. 2.Disqualification notice sent to subject. If the information in the study indicates 
226.9 	the individual is disqualified from direct contact with, or from access to, persons served by 
226.10 	the program, the commissioner shall disclose to the individual studied:
226.11 	(1) the information causing disqualification;
226.12 	(2) instructions on how to request a reconsideration of the disqualification;
226.13 	(3) an explanation of any restrictions on the commissioner's discretion to set aside the 
226.14 	disqualification under section 245J.22, when applicable to the individual; and
226.15 	(4) a statement that when a subsequent background study is initiated on the individual 
226.16 	following a set-aside of the individual's disqualification, and the commissioner makes a 
226.17 	determination under section 245J.20, subdivision 5, paragraph (b), that the previous set-aside 
226.18 	applies to the subsequent background study, the entity that initiated the background study 
226.19 	will be informed that the individual's disqualification is set aside for that entity.
226.20 		Subd. 3.Disqualification notification. (a) The commissioner shall notify the entity that 
226.21 	submitted the study:
226.22 	(1) that the commissioner has found information that disqualifies the individual studied 
226.23 	from being in a position allowing direct contact with, or access to, people served by the 
226.24 	entity; and
226.25 	(2) the commissioner's determination of the individual's risk of harm under section 
226.26 	245J.14.
226.27 	(b) If the commissioner determines under section 245J.14 that an individual studied 
226.28 	poses an imminent risk of harm to persons served by the entity where the individual studied 
226.29 	will have direct contact with, or access to, people served by the entity, the commissioner 
226.30 	shall order the license holder to immediately remove the individual studied from any position 
226.31 	allowing direct contact with, or access to, people served by the entity.
227.1 	(c) If the commissioner determines under section 245J.14 that an individual studied 
227.2 	poses a risk of harm that requires continuous, direct supervision, the commissioner shall 
227.3 	order the entity to:
227.4 	(1) immediately remove the individual studied from any position allowing direct contact 
227.5 	with, or access to, people receiving services; or
227.6 	(2) before allowing the disqualified individual to be in a position allowing direct contact 
227.7 	with, or access to, people receiving services, the entity must:
227.8 	(i) ensure that the individual studied is under continuous, direct supervision when in a 
227.9 	position allowing direct contact with, or access to, people receiving services during the 
227.10 	period in which the individual may request a reconsideration of the disqualification under 
227.11 	section 245J.19; and
227.12 	(ii) ensure that the disqualified individual requests reconsideration within 30 days of 
227.13 	receipt of the notice of disqualification.
227.14 	(d) If the commissioner determines under section 245J.14 that an individual studied does 
227.15 	not pose a risk of harm that requires continuous, direct supervision, the commissioner shall 
227.16 	order the entity to:
227.17 	(1) immediately remove the individual studied from any position allowing direct contact 
227.18 	with, or access to, people receiving services; or
227.19 	(2) before allowing the disqualified individual to be in any position allowing direct 
227.20 	contact with, or access to, people receiving services, the entity must ensure that the 
227.21 	disqualified individual requests reconsideration within 15 days of receipt of the notice of 
227.22 	disqualification.
227.23 	(e) The commissioner shall not notify the entity of the information contained in the 
227.24 	subject's background study unless:
227.25 	(1) the basis for the disqualification is failure to cooperate with the background study 
227.26 	or substantiated maltreatment under section 626.557 or chapter 260E;
227.27 	(2) the Data Practices Act under chapter 13 provides for release of the information; or
227.28 	(3) the individual studied provides the commissioner with written, informed consent 
227.29 	authorizing the release of the information.

228.1 	Sec. 36. [245J.16] OBLIGATION TO REMOVE DISQUALIFIED INDIVIDUAL 
228.2 	FROM DIRECT CONTACT OR ACCESS TO PEOPLE RECEIVING SERVICES.
228.3 	Upon receipt of notice from the commissioner, the entity must remove a disqualified 
228.4 	individual from direct contact with or access to persons served by the entity if:
228.5 	(1) the individual does not request reconsideration under section 245J.19 within the 
228.6 	prescribed time;
228.7 	(2) the individual submits a timely request for reconsideration, the commissioner does 
228.8 	not set aside the disqualification under section 245J.20, subdivision 4, and the individual 
228.9 	does not submit a timely request for a hearing under sections 245J.24 and 256.045, or 
228.10 	245J.25 and chapter 14; or
228.11 	(3) the individual submits a timely request for a hearing under sections 245J.24 and 
228.12 	256.045, or 245J.25 and chapter 14, and the commissioner does not set aside or rescind the 
228.13 	disqualification under section 245A.08, subdivision 5, or 256.045.

228.14 	Sec. 37. [245J.17] TERMINATION OF AFFILIATION BASED ON 
228.15 	DISQUALIFICATION NOTICE.
228.16 	An applicant or license holder that terminates affiliation with persons studied under this 
228.17 	chapter, when the termination is made in good faith reliance on a notice of disqualification 
228.18 	provided by the commissioner, shall not be subject to civil liability.

228.19 	Sec. 38. [245J.18] ENTITY RECORD KEEPING.
228.20 		Subdivision 1.Background studies initiated by entity. The entity shall document the 
228.21 	date the entity initiates a background study under this chapter and the date the subject of 
228.22 	the study first has direct contact with persons served by the entity in the entity's personnel 
228.23 	files. When a background study is completed under this chapter, an entity shall maintain a 
228.24 	notice that the study was undertaken and completed in the entity's personnel files.
228.25 		Subd. 2.Background studies initiated by others; personnel pool agencies, temporary 
228.26 	personnel agencies, supplemental nursing services agencies, or professional services 
228.27 	agencies. When a license holder relies on a background study initiated by a personnel pool 
228.28 	agency, a temporary personnel agency, a supplemental nursing services agency, or a 
228.29 	professional services agency for a person required to have a background study completed 
228.30 	under this chapter, the entity must maintain a copy of the background study results in the 
228.31 	entity's files.
229.1 		Subd. 3.Background studies initiated by others; educational programs. When an 
229.2 	entity relies on a background study initiated by an educational program for a person required 
229.3 	to have a background study completed under this chapter and the person is on the educational 
229.4 	program's active roster, the entity is responsible for ensuring that the background study has 
229.5 	been completed. The entity may satisfy the documentation requirements through a written 
229.6 	agreement with the educational program verifying that documentation of the background 
229.7 	study may be provided upon request and that the educational program will inform the entity 
229.8 	if there is a change in the person's background study status. The entity remains responsible 
229.9 	for ensuring that all background study requirements are met.
229.10 		Subd. 4.Background studies identified on active rosters. The requirements in 
229.11 	subdivisions 1 and 2 are met for entities for which active rosters are implemented and for 
229.12 	whom all individuals affiliated with the entity are recorded on the active roster.

229.13 	Sec. 39. [245J.19] REQUESTING RECONSIDERATION OF DISQUALIFICATION.
229.14 		Subdivision 1.Who may request reconsideration. An individual who is the subject of 
229.15 	a disqualification may request a reconsideration of the disqualification pursuant to this 
229.16 	section. The individual must submit the request for reconsideration to the commissioner in 
229.17 	writing.
229.18 		Subd. 2.Submission of reconsideration request. A reconsideration request shall be 
229.19 	submitted within 30 days of the individual's receipt of the disqualification notice or the time 
229.20 	frames specified in subdivision 3, whichever time frame is shorter.
229.21 		Subd. 3.Time frame for requesting reconsideration. (a) When the commissioner 
229.22 	sends an individual a notice of disqualification based on a finding under section 245J.14, 
229.23 	subdivision 2, paragraph (a), clause (1) or (2), the disqualified individual must submit the 
229.24 	request for a reconsideration within 30 calendar days of the individual's receipt of the notice 
229.25 	of disqualification. If mailed, the request for reconsideration must be postmarked and sent 
229.26 	to the commissioner within 30 calendar days of the individual's receipt of the notice of 
229.27 	disqualification. If a request for reconsideration is made by personal service, it must be 
229.28 	received by the commissioner within 30 calendar days after the individual's receipt of the 
229.29 	notice of disqualification. Upon showing that the information under subdivision 3 cannot 
229.30 	be obtained within 30 days, the disqualified individual may request additional time, not to 
229.31 	exceed 30 days, to obtain the information.
229.32 	(b) When the commissioner sends an individual a notice of disqualification based on a 
229.33 	finding under section 245J.14, subdivision 2, paragraph (a), clause (3), the disqualified 
229.34 	individual must submit the request for reconsideration within 15 calendar days of the 
230.1 	individual's receipt of the notice of disqualification. If mailed, the request for reconsideration 
230.2 	must be postmarked and sent to the commissioner within 15 calendar days of the individual's 
230.3 	receipt of the notice of disqualification. If a request for reconsideration is made by personal 
230.4 	service, it must be received by the commissioner within 15 calendar days after the individual's 
230.5 	receipt of the notice of disqualification.
230.6 	(c) An individual who was determined to have maltreated a child under chapter 260E 
230.7 	or a vulnerable adult under section 626.557, and who is disqualified on the basis of serious 
230.8 	or recurring maltreatment, may request a reconsideration of both the maltreatment and the 
230.9 	disqualification determinations. The request must be submitted within 30 calendar days of 
230.10 	the individual's receipt of the notice of disqualification. If mailed, the request for 
230.11 	reconsideration must be postmarked and sent to the commissioner within 30 calendar days 
230.12 	of the individual's receipt of the notice of disqualification. If a request for reconsideration 
230.13 	is made by personal service, it must be received by the commissioner within 30 calendar 
230.14 	days after the individual's receipt of the notice of disqualification.
230.15 	(d) Reconsideration of a maltreatment determination under sections 260E.33 and 626.557, 
230.16 	subdivision 9d, and reconsideration of a disqualification under section 245J.20, shall not 
230.17 	be conducted when:
230.18 	(1) a denial of a license under section 245A.05, or a licensing sanction under section 
230.19 	245A.07, is based on a determination that the license holder is responsible for maltreatment 
230.20 	or the disqualification of a license holder based on serious or recurring maltreatment;
230.21 	(2) the denial of a license or licensing sanction is issued at the same time as the 
230.22 	maltreatment determination or disqualification; and
230.23 	(3) the license holder appeals the maltreatment determination, disqualification, and 
230.24 	denial of a license or licensing sanction. In such cases, a fair hearing under section 256.045 
230.25 	must not be conducted under sections 245J.24, 260E.33, and 626.557, subdivision 9d. Under 
230.26 	section 245A.08, subdivision 2a, the scope of the consolidated contested case hearing must 
230.27 	include the maltreatment determination, disqualification, and denial of a license or licensing 
230.28 	sanction.
230.29 	Notwithstanding clauses (1) to (3), if the license holder appeals the maltreatment 
230.30 	determination or disqualification, but does not appeal the denial of a license or a licensing 
230.31 	sanction, reconsideration of the maltreatment determination shall be conducted under sections 
230.32 	260E.33 and 626.557, subdivision 9d, and reconsideration of the disqualification shall be 
230.33 	conducted under section 245J.20. In such cases, a fair hearing shall also be conducted as 
230.34 	provided under sections 245J.24, 260E.33, and 626.557, subdivision 9d.
231.1 		Subd. 4.Disqualified individuals; information for reconsideration. (a) The disqualified 
231.2 	individual requesting reconsideration must submit information showing that:
231.3 	(1) the information the commissioner relied upon in determining the underlying conduct 
231.4 	that gave rise to the disqualification is incorrect;
231.5 	(2) for maltreatment, the information the commissioner relied upon in determining that 
231.6 	maltreatment was serious or recurring is incorrect; or
231.7 	(3) the subject of the study does not pose a risk of harm to any person served by the 
231.8 	entity as provided in this chapter, by addressing the information required under section 
231.9 	245J.20, subdivision 4.
231.10 	(b) In order to determine the individual's risk of harm, the commissioner may require 
231.11 	additional information from the disqualified individual as part of the reconsideration process. 
231.12 	If the individual fails to provide the required information, the commissioner may deny the 
231.13 	individual's request.
231.14 		Subd. 5.Notice of request for reconsideration. Upon request, the commissioner may 
231.15 	inform the entity as provided in this chapter who received a notice of the individual's 
231.16 	disqualification under section 245J.15, subdivision 3, or has the consent of the disqualified 
231.17 	individual, whether the disqualified individual has requested reconsideration.

231.18 	Sec. 40. [245J.20] REVIEW AND ACTION ON A RECONSIDERATION REQUEST.
231.19 		Subdivision 1.Time frame; response to disqualification reconsideration requests. (a) 
231.20 	The commissioner shall respond in writing or by electronic transmission to all reconsideration 
231.21 	requests for which the basis for the request is that the information the commissioner relied 
231.22 	upon to disqualify is incorrect or inaccurate within 30 working days of receipt of a complete 
231.23 	request and all required relevant information.
231.24 	(b) If the basis for a disqualified individual's reconsideration request is that the individual 
231.25 	does not pose a risk of harm, the commissioner shall respond to the request within 15 working 
231.26 	days after receiving a complete request for reconsideration and all required relevant 
231.27 	information.
231.28 	(c) If the disqualified individual's reconsideration request is based on both the correctness 
231.29 	or accuracy of the information the commissioner relied upon to disqualify the individual 
231.30 	and the individual's risk of harm, the commissioner shall respond to the request within 45 
231.31 	working days after receiving a complete request for reconsideration and all required relevant 
231.32 	information.
232.1 		Subd. 2.Incorrect information; rescission. The commissioner shall rescind the 
232.2 	disqualification if the commissioner finds that the information relied upon to disqualify the 
232.3 	subject is incorrect.
232.4 		Subd. 3.Preeminent weight given to safety of persons being served. In reviewing a 
232.5 	request for reconsideration of a disqualification, the commissioner shall give preeminent 
232.6 	weight to the safety of each person served by the entity as provided in this chapter over the 
232.7 	interests of the disqualified individual or entity as provided in this chapter, and any single 
232.8 	factor under subdivision 4, paragraph (b), may be determinative of the commissioner's 
232.9 	decision whether to set aside the individual's disqualification.
232.10 		Subd. 4.Risk of harm; set aside. (a) The commissioner may set aside the disqualification 
232.11 	if the commissioner finds that the individual has submitted sufficient information to 
232.12 	demonstrate that the individual does not pose a risk of harm to any person served by the 
232.13 	entity as provided in this chapter.
232.14 	(b) In determining whether the individual has met the burden of proof by demonstrating 
232.15 	the individual does not pose a risk of harm, the commissioner shall consider:
232.16 	(1) the nature, severity, and consequences of the event or events that led to the 
232.17 	disqualification;
232.18 	(2) whether there is more than one disqualifying event;
232.19 	(3) the age and vulnerability of the victim at the time of the event;
232.20 	(4) the harm suffered by the victim;
232.21 	(5) vulnerability of persons served by the program;
232.22 	(6) the similarity between the victim and persons served by the program;
232.23 	(7) the time elapsed without a repeat of the same or similar event;
232.24 	(8) documentation of successful completion by the individual studied of training or 
232.25 	rehabilitation pertinent to the event; and
232.26 	(9) any other information relevant to reconsideration.
232.27 	(c) If the individual requested reconsideration on the basis that the information relied 
232.28 	upon to disqualify the individual was incorrect or inaccurate and the commissioner determines 
232.29 	that the information relied upon to disqualify the individual is correct, the commissioner 
232.30 	must also determine if the individual poses a risk of harm to persons receiving services in 
232.31 	accordance with paragraph (b).
233.1 		Subd. 5.Scope of set-aside. (a) If the commissioner sets aside a disqualification under 
233.2 	this section, the disqualified individual remains disqualified, but may hold a license and 
233.3 	have direct contact with or access to persons receiving services. Except as provided in 
233.4 	paragraph (b), the commissioner's set-aside of a disqualification is limited solely to the 
233.5 	licensed program, applicant, or agency specified in the set aside notice under section 245J.21. 
233.6 	For personal care provider organizations, the commissioner's set-aside may further be limited 
233.7 	to a specific individual who is receiving services. For new background studies required 
233.8 	under section 245J.04, subdivision 1, paragraph (c), if an individual's disqualification was 
233.9 	previously set aside for the license holder's program and the new background study results 
233.10 	in no new information that indicates the individual may pose a risk of harm to persons 
233.11 	receiving services from the license holder, the previous set-aside shall remain in effect.
233.12 	(b) If the commissioner has previously set aside an individual's disqualification for one 
233.13 	or more entities, and the individual is the subject of a subsequent background study for a 
233.14 	different entity, the commissioner shall determine whether the disqualification is set aside 
233.15 	for the entity that initiated the subsequent background study. A notice of a set-aside under 
233.16 	paragraph (c) shall be issued within 15 working days if all of the following criteria are met:
233.17 	(1) the subsequent background study was initiated in connection with an entity licensed 
233.18 	or regulated under the same provisions of law and rule for at least one entity for which the 
233.19 	individual's disqualification was previously set aside by the commissioner;
233.20 	(2) the individual is not disqualified for an offense specified in section 245J.13, 
233.21 	subdivision 1 or 2;
233.22 	(3) the commissioner has received no new information to indicate that the individual 
233.23 	may pose a risk of harm to any person served by the program; and
233.24 	(4) the previous set-aside was not limited to a specific person receiving services.
233.25 	(c) When a disqualification is set aside under paragraph (b), the notice of background 
233.26 	study results issued under section 245J.15, in addition to the requirements under section 
233.27 	245J.15, shall state that the disqualification is set aside for the program or agency that 
233.28 	initiated the subsequent background study. The notice must inform the individual that the 
233.29 	individual may request reconsideration of the disqualification under section 245J.19 on the 
233.30 	basis that the information used to disqualify the individual is incorrect.
233.31 		Subd. 6.Rescission of set-aside. The commissioner may rescind a previous set aside 
233.32 	of a disqualification under this section based on new information that indicates the individual 
233.33 	may pose a risk of harm to persons served by the applicant, license holder, or other entities 
233.34 	as provided in this chapter. If the commissioner rescinds a set-aside of a disqualification 
234.1 	under this subdivision, the appeal rights under sections 245J.19; 245J.24, subdivision 1; 
234.2 	and 245J.25, subdivision 3, shall apply.

234.3 	Sec. 41. [245J.21] COMMISSIONER'S RECONSIDERATION NOTICE.
234.4 		Subdivision 1.Disqualification that is rescinded or set aside. (a) If the commissioner 
234.5 	rescinds or sets aside a disqualification, the commissioner shall notify the entity in writing 
234.6 	or by electronic transmission of the decision.
234.7 	(b) In the notice from the commissioner that a disqualification has been rescinded, the 
234.8 	commissioner must inform the entity that the information relied upon to disqualify the 
234.9 	individual was incorrect.
234.10 		Subd. 2.Commissioner's notice of disqualification that is not set aside. (a) The 
234.11 	commissioner shall notify the entity of the disqualification and order the entity to immediately 
234.12 	remove the individual from any position allowing direct contact with persons receiving 
234.13 	services from the entity if:
234.14 	(1) the individual studied does not submit a timely request for reconsideration under 
234.15 	section 245J.19;
234.16 	(2) the individual submits a timely request for reconsideration, but the commissioner 
234.17 	does not set aside the disqualification for that entity under section 245J.20, unless the 
234.18 	individual has a right to request a hearing under section 245J.24, 245J.25, or 256.045;
234.19 	(3) an individual who has a right to request a hearing under sections 245J.24 and 256.045, 
234.20 	or 245J.25 and chapter 14 for a disqualification that has not been set aside, does not request 
234.21 	a hearing within the specified time; or
234.22 	(4) an individual submitted a timely request for a hearing under sections 245J.24 and 
234.23 	256.045, or 245J.25 and chapter 14, but the commissioner does not set aside the 
234.24 	disqualification under section 245A.08, subdivision 5, or 256.045.
234.25 	(b) If the commissioner does not set aside the disqualification under section 245J.20, 
234.26 	and the entity was previously ordered under section 245J.15 to immediately remove the 
234.27 	disqualified individual from direct contact with persons receiving services or to ensure that 
234.28 	the individual is under continuous, direct supervision when providing direct contact services, 
234.29 	the order remains in effect pending the outcome of a hearing under sections 245J.24 and 
234.30 	256.045, or 245J.25 and chapter 14.
234.31 	(c) If the commissioner does not set aside the disqualification under section 245J.20, 
234.32 	and the entity was not previously ordered under section 245J.15 to immediately remove the 
235.1 	disqualified individual from direct contact with persons receiving services or to ensure that 
235.2 	the individual is under continuous direct supervision when providing direct contact services, 
235.3 	the commissioner shall order the individual to remain under continuous direct supervision 
235.4 	pending the outcome of a hearing under sections 245J.24 and 256.045, or 245J.25 and 
235.5 	chapter 14.

235.6 	Sec. 42. [245J.22] DISQUALIFICATION; BAR TO SET ASIDE A 
235.7 	DISQUALIFICATION.
235.8 	The commissioner may not set aside the disqualification of any individual disqualified 
235.9 	pursuant to this chapter, regardless of how much time has passed, if the individual was 
235.10 	disqualified for a crime or conduct listed in section 245J.13, subdivision 1.

235.11 	Sec. 43. [245J.23] CONSOLIDATED RECONSIDERATION OF MALTREATMENT 
235.12 	DETERMINATION AND DISQUALIFICATION.
235.13 	If an individual is disqualified on the basis of a determination of maltreatment under 
235.14 	section 626.557 or chapter 260E, which was serious and recurring, and the individual requests 
235.15 	reconsideration of the maltreatment determination under section 260E.33 or 626.557, 
235.16 	subdivision 9d, and also requests reconsideration of the disqualification under section 
235.17 	245J.19, the commissioner shall consolidate the reconsideration of the maltreatment 
235.18 	determination and the disqualification into a single reconsideration.

235.19 	Sec. 44. [245J.24] FAIR HEARING RIGHTS.
235.20 		Subdivision 1.Fair hearing following a reconsideration decision. (a) An individual 
235.21 	who is disqualified on the basis of a preponderance of evidence that the individual committed 
235.22 	an act or acts that meet the definition of any of the crimes listed in section 245J.13; for a 
235.23 	determination under section 626.557 or chapter 260E of substantiated maltreatment that 
235.24 	was serious or recurring under section 245J.13; or for failure to make required reports under 
235.25 	section 260E.06, subdivision 1 or 2; 260E.11, subdivision 1; or 626.557, subdivision 3, 
235.26 	pursuant to section 245J.13, subdivision 4, paragraph (b), clause (1), may request a fair 
235.27 	hearing under section 256.045, following a reconsideration decision issued under section 
235.28 	245J.21, unless the disqualification is deemed conclusive under section 245J.26.
235.29 	(b) The fair hearing is the only administrative appeal of the final agency determination 
235.30 	for purposes of appeal by the disqualified individual. The disqualified individual does not 
235.31 	have the right to challenge the accuracy and completeness of data under section 13.04.
236.1 	(c) Except as provided under paragraph (e), if the individual was disqualified based on 
236.2 	a conviction of, admission to, or Alford Plea to any crimes or conduct listed in section 
236.3 	245J.13, subdivisions 1 to 4, or for a disqualification under section 256.98, subdivision 8, 
236.4 	the reconsideration decision under section 245J.20 is the final agency determination for 
236.5 	purposes of appeal by the disqualified individual and is not subject to a hearing under section 
236.6 	256.045. If the individual was disqualified based on a judicial determination, that 
236.7 	determination is treated the same as a conviction for purposes of appeal.
236.8 	(d) This subdivision does not apply to a public employee's appeal of a disqualification 
236.9 	under section 245J.25, subdivision 3.
236.10 	(e) Notwithstanding paragraph (c), if the commissioner does not set aside a 
236.11 	disqualification of an individual who was disqualified based on both a preponderance of 
236.12 	evidence and a conviction or admission, the individual may request a fair hearing under 
236.13 	section 256.045, unless the disqualifications are deemed conclusive under section 245J.26. 
236.14 	The scope of the hearing conducted under section 256.045 with regard to the disqualification 
236.15 	based on a conviction or admission shall be limited solely to whether the individual poses 
236.16 	a risk of harm, according to section 256.045, subdivision 3b. In this case, the reconsideration 
236.17 	decision under section 245J.20 is not the final agency decision for purposes of appeal by 
236.18 	the disqualified individual.
236.19 		Subd. 2.Consolidated fair hearing following a reconsideration decision. (a) If an 
236.20 	individual who is disqualified on the bases of serious or recurring maltreatment requests a 
236.21 	fair hearing on the maltreatment determination under section 260E.33 or 626.557, subdivision 
236.22 	9d, and requests a fair hearing under this section on the disqualification following a 
236.23 	reconsideration decision under section 245J.21, the scope of the fair hearing under section 
236.24 	256.045 shall include the maltreatment determination and the disqualification.
236.25 	(b) A fair hearing is the only administrative appeal of the final agency determination. 
236.26 	The disqualified individual does not have the right to challenge the accuracy and 
236.27 	completeness of data under section 13.04.
236.28 	(c) This subdivision does not apply to a public employee's appeal of a disqualification 
236.29 	under section 245J.25, subdivision 3.

236.30 	Sec. 45. [245J.25] CONTESTED CASE HEARING RIGHTS.
236.31 		Subdivision 1.License holder. (a) If a maltreatment determination or a disqualification 
236.32 	for which reconsideration was timely requested and which was not set aside is the basis for 
236.33 	a denial of a license under section 245A.05 or a licensing sanction under section 245A.07, 
237.1 	the license holder has the right to a contested case hearing under chapter 14 and Minnesota 
237.2 	Rules, parts 1400.8505 to 1400.8612. The license holder must submit the appeal under 
237.3 	section 245A.05 or 245A.07, subdivision 3.
237.4 	(b) As provided under section 245A.08, subdivision 2a, if the denial of a license or 
237.5 	licensing sanction is based on a disqualification for which reconsideration was timely 
237.6 	requested and was not set aside, the scope of the consolidated contested case hearing must 
237.7 	include:
237.8 	(1) the disqualification, to the extent the license holder otherwise has a hearing right on 
237.9 	the disqualification under this chapter; and
237.10 	(2) the licensing sanction or denial of a license.
237.11 	(c) As provided for under section 245A.08, subdivision 2a, if the denial of a license or 
237.12 	licensing sanction is based on a determination of maltreatment under section 626.557 or 
237.13 	chapter 260E, or a disqualification for serious or recurring maltreatment which was not set 
237.14 	aside, the scope of the contested case hearing must include:
237.15 	(1) the maltreatment determination, if the maltreatment is not conclusive under section 
237.16 	245J.26;
237.17 	(2) the disqualification, if the disqualification is not conclusive under section 245J.26; 
237.18 	and
237.19 	(3) the licensing sanction or denial of a license. In such cases, a fair hearing must not 
237.20 	be conducted under section 256.045. If the disqualification was based on a determination 
237.21 	of substantiated serious or recurring maltreatment under section 626.557 or chapter 260E, 
237.22 	the appeal must be submitted under section 245A.07, subdivision 3, 260E.33, or 626.557, 
237.23 	subdivision 9d.
237.24 	(d) Except for family child care and child foster care, reconsideration of a maltreatment 
237.25 	determination under sections 260E.33 and 626.557, subdivision 9d, and reconsideration of 
237.26 	a disqualification under section 245J.20, must not be conducted when:
237.27 	(1) a denial of a license under section 245A.05, or a licensing sanction under section 
237.28 	245A.07, is based on a determination that the license holder is responsible for maltreatment 
237.29 	or the disqualification of a license holder based on serious or recurring maltreatment;
237.30 	(2) the denial of a license or licensing sanction is issued at the same time as the 
237.31 	maltreatment determination or disqualification; and
238.1 	(3) the license holder appeals the maltreatment determination, disqualification, and 
238.2 	denial of a license or licensing sanction. In such cases a fair hearing under section 256.045 
238.3 	must not be conducted under sections 245J.24, 260E.33, and 626.557, subdivision 9d. Under 
238.4 	section 245A.08, subdivision 2a, the scope of the consolidated contested case hearing must 
238.5 	include the maltreatment determination, disqualification, and denial of a license or licensing 
238.6 	sanction.
238.7 	Notwithstanding clauses (1) to (3), if the license holder appeals the maltreatment 
238.8 	determination or disqualification, but does not appeal the denial of a license or a licensing 
238.9 	sanction, reconsideration of the maltreatment determination shall be conducted under sections 
238.10 	260E.33 and 626.557, subdivision 9d, and reconsideration of the disqualification shall be 
238.11 	conducted under section 245J.20. In such cases, a fair hearing shall also be conducted as 
238.12 	provided under sections 245J.24, 260E.33, and 626.557, subdivision 9d.
238.13 		Subd. 2.Individual other than license holder. If the basis for the commissioner's denial 
238.14 	of a license under section 245A.05 or a licensing sanction under section 245A.07 is a 
238.15 	maltreatment determination or disqualification that was not set aside under section 245J.20, 
238.16 	and the disqualified subject is an individual other than the license holder and upon whom 
238.17 	a background study must be conducted under this chapter, the hearing of all parties may be 
238.18 	consolidated into a single contested case hearing upon consent of all parties and the 
238.19 	administrative law judge.
238.20 		Subd. 3.Employees of public employer. (a) A disqualified individual who is an 
238.21 	employee of an employer, as defined in section 179A.03, subdivision 15, may request a 
238.22 	contested case hearing under chapter 14, and specifically Minnesota Rules, parts 1400.8505 
238.23 	to 1400.8612, following a reconsideration decision under section 245J.21, unless the 
238.24 	disqualification is deemed conclusive under section 245J.26. The request for a contested 
238.25 	case hearing must be made in writing and must be postmarked and sent within 30 calendar 
238.26 	days after the employee receives notice of the reconsideration decision. If the individual 
238.27 	was disqualified based on a conviction or admission to any crimes listed in section 245J.13, 
238.28 	the scope of the contested case hearing shall be limited solely to whether the individual 
238.29 	poses a risk of harm pursuant to section 245J.20.
238.30 	(b) When an individual is disqualified based on a maltreatment determination, the scope 
238.31 	of the contested case hearing under paragraph (a), must include the maltreatment 
238.32 	determination and the disqualification. In such cases, a fair hearing must not be conducted 
238.33 	under section 256.045.
239.1 	(c) Rules adopted under this chapter may not preclude an employee in a contested case 
239.2 	hearing for a disqualification from submitting evidence concerning information gathered 
239.3 	under this chapter.
239.4 	(d) When an individual has been disqualified from multiple licensed programs, if at least 
239.5 	one of the disqualifications entitles the person to a contested case hearing under this 
239.6 	subdivision, the scope of the contested case hearing shall include all disqualifications from 
239.7 	licensed programs.
239.8 	(e) In determining whether the disqualification should be set aside, the administrative 
239.9 	law judge shall consider all of the characteristics that cause the individual to be disqualified, 
239.10 	as well as all the factors set forth in section 245J.20, in order to determine whether the 
239.11 	individual has met the burden of demonstrating that the individual does not pose a risk of 
239.12 	harm. The administrative law judge's recommendation and the commissioner's order to set 
239.13 	aside a disqualification that is the subject of the hearing constitutes a determination that the 
239.14 	individual does not pose a risk of harm and that the individual may provide direct contact 
239.15 	services in the individual program specified in the set aside.
239.16 	(f) An individual may not request a contested case hearing under this section if a contested 
239.17 	case hearing has previously been held regarding the individual's disqualification on the same 
239.18 	basis.
239.19 		Subd. 4.Final agency order. The commissioner's final order under section 245A.08, 
239.20 	subdivision 5, is conclusive on the issue of maltreatment and disqualification, including for 
239.21 	purposes of subsequent background studies. The contested case hearing under this section 
239.22 	is the only administrative appeal of the final agency determination, specifically, including 
239.23 	a challenge to the accuracy and completeness of data under section 13.04.

239.24 	Sec. 46. [245J.26] CONCLUSIVE DETERMINATIONS OR DISPOSITIONS.
239.25 		Subdivision 1.Conclusive maltreatment determination or disposition. Unless 
239.26 	otherwise specified in statute, a maltreatment determination or disposition under section 
239.27 	626.557 or chapter 260E is conclusive, if:
239.28 	(1) the commissioner has issued a final order in an appeal of that determination or 
239.29 	disposition under section 245A.08, subdivision 5, or 256.045;
239.30 	(2) the individual did not request reconsideration of the maltreatment determination or 
239.31 	disposition under section 626.557 or chapter 260E; or
239.32 	(3) the individual did not request a hearing of the maltreatment determination or 
239.33 	disposition under section 256.045.
240.1 		Subd. 2.Conclusive disqualification determination. (a) A disqualification is conclusive 
240.2 	for purposes of current and future background studies if:
240.3 	(1) the commissioner has issued a final order in an appeal of the disqualification under 
240.4 	section 245A.08, subdivision 5; 245J.25, subdivision 3; or 256.045, or a court has issued a 
240.5 	final decision;
240.6 	(2) the individual did not request reconsideration of the disqualification under section 
240.7 	245J.19 on the basis that the information relied upon to disqualify the individual was 
240.8 	incorrect; or
240.9 	(3) the individual did not timely request a hearing on the disqualification under this 
240.10 	chapter, chapter 14, or section 256.045 after previously being given the right to do so.
240.11 	(b) If a disqualification is conclusive under this section, the individual has a right to 
240.12 	request reconsideration on the risk of harm under section 245J.19 unless the commissioner 
240.13 	is barred from setting aside the disqualification under section 245J.22. The commissioner's 
240.14 	decision regarding the risk of harm shall be the final agency decision and is not subject to 
240.15 	a hearing under this chapter, chapter 14, or section 256.045.

240.16 	Sec. 47. [245J.27] VARIANCE FOR A DISQUALIFIED INDIVIDUAL.
240.17 		Subdivision 1.Entity variance. (a) Except for any disqualification under section 245J.11, 
240.18 	subdivision 1, when the commissioner has not set aside a background study subject's 
240.19 	disqualification, and there are conditions under which the disqualified individual may provide 
240.20 	direct contact services or have access to people receiving services that minimize the risk of 
240.21 	harm to people receiving services, the commissioner may grant a time-limited variance to 
240.22 	an entity.
240.23 	(b) The variance shall state the services that may be provided by the disqualified 
240.24 	individual and state the conditions with which the entity must comply for the variance to 
240.25 	remain in effect. The variance shall not state the reason for the disqualification.
240.26 		Subd. 2.Consequences for failing to comply with conditions of variance. When an 
240.27 	entity permits a disqualified individual to provide any services for which the subject is 
240.28 	disqualified without complying with the conditions of the variance, the commissioner may 
240.29 	terminate the variance effective immediately and subject the entity or license holder to a 
240.30 	licensing action under sections 245A.06 and 245A.07.
240.31 		Subd. 3.Termination of a variance. The commissioner may terminate a variance for 
240.32 	a disqualified individual at any time for cause.
241.1 		Subd. 4.Final decision. The commissioner's decision to grant or deny a variance is final 
241.2 	and not subject to appeal under the provisions of chapter 14.

241.3 	Sec. 48. [245J.28] INDIVIDUAL REGULATED BY A HEALTH-RELATED 
241.4 	LICENSING BOARD; DISQUALIFICATION BASED ON MALTREATMENT.
241.5 	(a) The commissioner has the authority to monitor the facility's compliance with any 
241.6 	requirements that the health-related licensing board places on regulated individuals practicing 
241.7 	in a facility either during the period pending a final decision on a disciplinary or corrective 
241.8 	action or as a result of a disciplinary or corrective action. The commissioner has the authority 
241.9 	to order the immediate removal of a regulated individual from direct contact or access when 
241.10 	a board issues an order of temporary suspension based on a determination that the regulated 
241.11 	individual poses an immediate risk of harm to persons receiving services in a licensed 
241.12 	facility.
241.13 	(b) A facility that allows a regulated individual to provide direct contact services while 
241.14 	not complying with the requirements imposed by the health-related licensing board is subject 
241.15 	to action by the commissioner as specified under sections 245A.06 and 245A.07.
241.16 	(c) The commissioner shall notify a health-related licensing board immediately upon 
241.17 	receipt of knowledge of a facility's or individual's noncompliance with requirements the 
241.18 	board placed on a facility or upon an individual regulated by the board.

241.19 	Sec. 49. [245J.29] SYSTEMS AND RECORDS.
241.20 		Subdivision 1.Establishment. The commissioner may establish systems and records 
241.21 	to fulfill the requirements of this chapter.
241.22 		Subd. 2.NETStudy 2.0 system. (a) The NETStudy 2.0 system developed and 
241.23 	implemented by the commissioner shall incorporate and meet all applicable data security 
241.24 	standards and policies required by the Federal Bureau of Investigation (FBI), Department 
241.25 	of Public Safety, Bureau of Criminal Apprehension, and Department of Information 
241.26 	Technology Services. The system shall meet all required standards for encryption of data 
241.27 	at the database level as well as encryption of data that travels electronically among agencies 
241.28 	initiating background studies, the commissioner's authorized fingerprint collection vendor 
241.29 	or vendors, the commissioner, the Bureau of Criminal Apprehension, and in cases involving 
241.30 	national criminal record checks, the FBI.
241.31 	(b) The data system developed and implemented by the commissioner shall incorporate 
241.32 	a system of data security that allows the commissioner to control access to the data field 
242.1 	level by the commissioner's employees. The commissioner shall establish that employees 
242.2 	have access to the minimum amount of private data on any individual as is necessary to 
242.3 	perform their duties under this chapter.
242.4 	(c) The commissioner shall oversee regular quality and compliance audits of the 
242.5 	authorized fingerprint collection vendor or vendors.
242.6 		Subd. 3.Use. The commissioner may also use these systems and records to obtain and 
242.7 	provide criminal history data from the Bureau of Criminal Apprehension, criminal history 
242.8 	data held by the commissioner, and data about substantiated maltreatment under section 
242.9 	626.557 or chapter 260E, for other purposes, provided that the background study is 
242.10 	specifically authorized in statute.
242.11 		Subd. 4.National records search. (a) When specifically required by statute, the 
242.12 	commissioner shall also obtain criminal history data from the National Criminal Records 
242.13 	Repository.
242.14 	(b) To obtain criminal history data from the National Criminal Records Repository, the 
242.15 	commissioner shall require classifiable fingerprints of the data subject and must submit 
242.16 	these fingerprint requests through the Bureau of Criminal Apprehension.
242.17 	(c) The commissioner may require the background study subject to submit fingerprint 
242.18 	images electronically. The commissioner may not require electronic fingerprint images until 
242.19 	the electronic recording and transfer system is available for noncriminal justice purposes 
242.20 	and the necessary equipment is in use in the law enforcement agency in the background 
242.21 	study subject's local community.
242.22 	(d) The commissioner may recover the cost of obtaining and providing criminal history 
242.23 	data from the National Criminal Records Repository by charging the individual or entity 
242.24 	requesting the study a fee of no more than $30 per study. The fees collected under this 
242.25 	subdivision are appropriated to the commissioner for the purpose of obtaining criminal 
242.26 	history data from the National Criminal Records Repository.

242.27 	Sec. 50. REPEALER.
 242.28 	Minnesota Statutes 2022, sections 245C.02, subdivision 14b; 245C.032; and 245C.30, 
242.29 	subdivision 1a, are repealed.

243.1 	ARTICLE 13
243.2 	LICENSING

243.3 	Section 1. Minnesota Statutes 2022, section 245.095, is amended to read:
243.4 	245.095 LIMITS ON RECEIVING PUBLIC FUNDS.
243.5 		Subdivision 1.Prohibition. (a) If a provider, vendor, or individual enrolled, licensed, 
243.6 	receiving funds under a grant contract, or registered in any program administered by the 
243.7 	commissioner, including under the commissioner's powers and authorities in section 256.01, 
243.8 	is excluded from that program, the commissioner shall:
243.9 	(1) prohibit the excluded provider, vendor, or individual from enrolling, becoming 
243.10 	licensed, receiving grant funds, or registering in any other program administered by the 
243.11 	commissioner; and
243.12 	(2) disenroll, revoke or suspend a license, disqualify, or debar the excluded provider, 
243.13 	vendor, or individual in any other program administered by the commissioner.
243.14 	(b) If a provider, vendor, or individual enrolled, licensed, receiving funds under a grant 
243.15 	contract, or registered in any program administered by the commissioner, including under 
243.16 	the commissioner's powers and authorities in section 256.01, is excluded from that program, 
243.17 	the commissioner may:
243.18 	(1) prohibit any associated entities or associated individuals from enrolling, becoming 
243.19 	licensed, receiving grant funds, or registering in any other program administered by the 
243.20 	commissioner; and
243.21 	(2) disenroll, revoke or suspend a license of, disqualify, or debar any associated entities 
243.22 	or associated individuals in any other program administered by the commissioner.
243.23 	(c) If a provider, vendor, or individual enrolled, licensed, or otherwise receiving funds 
243.24 	under any contract or registered in any program administered by a Minnesota state or federal 
243.25 	agency is excluded from that program, the commissioner of human services may:
243.26 	(1) prohibit the excluded provider, vendor, individual, or any associated entities or 
243.27 	associated individuals from enrolling, becoming licensed, receiving grant funds, or registering 
243.28 	in any program administered by the commissioner; and
243.29 	(2) disenroll, revoke or suspend a license of, disqualify, or debar the excluded provider, 
243.30 	vendor, individual, or any associated entities or associated individuals in any program 
243.31 	administered by the commissioner.
244.1 	(b) (d) The duration of this a prohibition, disenrollment, revocation, suspension, 
244.2 	disqualification, or debarment under paragraph (a) must last for the longest applicable 
244.3 	sanction or disqualifying period in effect for the provider, vendor, or individual permitted 
244.4 	by state or federal law. The duration of a prohibition, disenrollment, revocation, suspension, 
244.5 	disqualification, or debarment under paragraphs (b) and (c) may last until up to the longest 
244.6 	applicable sanction or disqualifying period in effect for the provider, vendor, individual, 
244.7 	associated entity, or associated individual as permitted by state or federal law.
244.8 		Subd. 2.Definitions. (a) For purposes of this section, the following definitions have the 
244.9 	meanings given them.
244.10 	(b) "Associated entity" means a provider or vendor owned or controlled by an excluded 
244.11 	individual.
244.12 	(c) "Associated individual" means an individual who owns or is an executive officer or 
244.13 	board member of an excluded provider or vendor.
244.14 	(b) (d) "Excluded" means disenrolled, disqualified, having a license that has been revoked 
244.15 	or suspended under chapter 245A, or debarred or suspended under Minnesota Rules, part 
244.16 	1230.1150, or excluded pursuant to section 256B.064, subdivision 3 removed under other 
244.17 	authorities from a program administered by a Minnesota state or federal agency, including 
244.18 	a final determination to stop payments.
244.19 	(c) (e) "Individual" means a natural person providing products or services as a provider 
244.20 	or vendor.
244.21 	(d) (f) "Provider" includes any entity or individual receiving payment from a program 
244.22 	administered by the Department of Human Services, and an owner, controlling individual, 
244.23 	license holder, director, or managerial official of an entity receiving payment from a program 
244.24 	administered by the Department of Human Services means any entity, individual, owner, 
244.25 	controlling individual, license holder, director, or managerial official of an entity receiving 
244.26 	payment from a program administered by a Minnesota state or federal agency.
244.27 		Subd. 3.Notice. Within five days of taking an action under subdivision (1), paragraph 
244.28 	(a), (b), or (c), against a provider, vendor, individual, associated individual, or associated 
244.29 	entity, the commissioner must send notice of the action to the provider, vendor, individual, 
244.30 	associated individual, or associated entity. The notice must state:
244.31 	(1) the basis for the action;
244.32 	(2) the effective date of the action;
244.33 	(3) the right to appeal the action; and
245.1 	(4) the requirements and procedures for reinstatement.
245.2 		Subd. 4.Appeal. Upon receipt of a notice under subdivision 3, a provider, vendor, 
245.3 	individual, associated individual, or associated entity may request a contested case hearing, 
245.4 	as defined in section 14.02, subdivision 3, by filing with the commissioner a written request 
245.5 	of appeal. The scope of any contested case hearing is solely limited to action taken under 
245.6 	this section. The commissioner must receive the appeal request no later than 30 days after 
245.7 	the date the notice was mailed to the provider, vendor, individual, associated individual, or 
245.8 	associated entity. The appeal request must specify:
245.9 	(1) each disputed item and the reason for the dispute;
245.10 	(2) the authority in statute or rule upon which the provider, vendor, individual, associated 
245.11 	individual, or associated entity relies for each disputed item;
245.12 	(3) the name and address of the person or entity with whom contacts may be made 
245.13 	regarding the appeal; and
245.14 	(4) any other information required by the commissioner.
245.15 		Subd. 5.Withholding of payments. (a) Except as otherwise provided by state or federal 
245.16 	law, the commissioner may withhold payments to a provider, vendor, individual, associated 
245.17 	individual, or associated entity in any program administered by the commissioner, if the 
245.18 	commissioner determines there is a credible allegation of fraud for which an investigation 
245.19 	is pending for a program administered by a Minnesota state or federal agency.
245.20 	(b) For purposes of this subdivision, "credible allegation of fraud" means an allegation 
245.21 	that has been verified by the commissioner from any source, including but not limited to:
245.22 	(1) fraud hotline complaints;
245.23 	(2) claims data mining;
245.24 	(3) patterns identified through provider audits, civil false claims cases, and law 
245.25 	enforcement investigations; and
245.26 	(4) court filings and other legal documents, including but not limited to police reports, 
245.27 	complaints, indictments, informations, affidavits, declarations, and search warrants.
245.28 	(c) The commissioner must send notice of the withholding of payments within five days 
245.29 	of taking such action. The notice must:
245.30 	(1) state that payments are being withheld according to this subdivision;
246.1 	(2) set forth the general allegations related to the withholding action, except the notice 
246.2 	need not disclose specific information concerning an ongoing investigation;
246.3 	(3) state that the withholding is for a temporary period and cite the circumstances under 
246.4 	which the withholding will be terminated; and
246.5 	(4) inform the provider, vendor, individual, associated individual, or associated entity 
246.6 	of the right to submit written evidence to contest the withholding action for consideration 
246.7 	by the commissioner.
246.8 	(d) The commissioner shall stop withholding payments if the commissioner determines 
246.9 	there is insufficient evidence of fraud by the provider, vendor, individual, associated 
246.10 	individual, or associated entity or when legal proceedings relating to the alleged fraud are 
246.11 	completed, unless the commissioner has sent notice under subdivision 3 to the provider, 
246.12 	vendor, individual, associated individual, or associated entity.
246.13 	(e) The withholding of payments is a temporary action and is not subject to appeal under 
246.14 	section 256.045 or chapter 14.

246.15 	Sec. 2. [245.7351] PURPOSE AND ESTABLISHMENT.
246.16 	The certified community behavioral health clinic model is an integrated payment and 
246.17 	service delivery model that uses evidence-based behavioral health practices to achieve better 
246.18 	outcomes for individuals diagnosed with behavioral health disorders while achieving 
246.19 	sustainable rates for providers and economic efficiencies for payors.

246.20 	EFFECTIVE DATE. This section is effective July 1, 2023, or upon federal approval, 
246.21 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
246.22 	when federal approval is obtained.

246.23 	Sec. 3. [245.7352] DEFINITIONS.
246.24 		Subdivision 1.Scope. The definitions in this section apply to sections 245.7351 to 
246.25 	245.736.
246.26 		Subd. 2.Approval. "Approval" has the meaning given in section 245I.02, subdivision 
246.27 	2.
246.28 		Subd. 3.Care coordination. "Care coordination" means the activities required to 
246.29 	coordinate care across settings and providers for the people served to ensure seamless 
246.30 	transitions across the full spectrum of health services. Care coordination includes: outreach 
246.31 	and engagement; documenting a plan of care for medical, behavioral health, and social 
247.1 	services and supports in the integrated treatment plan; assisting with obtaining appointments; 
247.2 	confirming appointments are kept; developing a crisis plan; tracking medication; and 
247.3 	implementing care coordination agreements with external providers. Care coordination may 
247.4 	include psychiatric consultation to primary care practitioners and mental health clinical care 
247.5 	consultation.
247.6 		Subd. 4.Certified community behavioral health clinic or CCBHC. "Certified 
247.7 	community behavioral health clinic" or "CCBHC" means a program or provider governed 
247.8 	under sections 245.7351 to 245.736.
247.9 		Subd. 5.Clinical responsibility.  "Clinical responsibility" means ensuring a designated 
247.10 	collaborating organization meets all clinical parameters required of the CCBHC.
247.11 		Subd. 6.Commissioner. "Commissioner" means the commissioner of human services.
247.12 		Subd. 7.Comprehensive evaluation.  "Comprehensive evaluation" means a 
247.13 	person-centered, family-centered, trauma-informed evaluation completed for the purposes 
247.14 	of diagnosis, treatment planning, and determination of client eligibility for services approved 
247.15 	by a mental health professional.
247.16 		Subd. 8.Crisis services.  "Crisis services" means crisis mental health and substance use 
247.17 	services, including 24-hour mobile crisis teams, emergency crisis intervention services, 
247.18 	crisis stabilization through existing mobile crisis services, and ambulatory withdrawal 
247.19 	management services equal to the American Society of Addiction Medicine's levels of care 
247.20 	1.0 or 2.0.
247.21 		Subd. 9.Cultural and linguistic competence. "Cultural and linguistic competence" 
247.22 	means appropriate services are respectful of and responsive to the health beliefs, practices, 
247.23 	and needs of diverse individuals.
247.24 		Subd. 10.Designated collaborating organization.  "Designated collaborating 
247.25 	organization" means an entity with a formal agreement with a CCBHC to furnish CCBHC 
247.26 	services.
247.27 		Subd. 11.Designated collaborating organization agreement. "Designated collaborating 
247.28 	organization agreement" means a purchase of services agreement between a CCBHC and 
247.29 	a designated collaborating organization as evidenced by a contract, memorandum of 
247.30 	agreement, memorandum of understanding, or other such formal arrangement that describes 
247.31 	specific CCBHC services to be purchased and provided by a designated collaborating 
247.32 	organization on behalf of a CCBHC in accordance with federal and state requirements.
248.1 		Subd. 12.Face to face. "Face to face" means two-way, real-time, interactive and visual 
248.2 	communication between a client and a treatment service provider, including services delivered 
248.3 	in person or via telehealth.
248.4 		Subd. 13.Functional assessment.  "Functional assessment" means the assessment of a 
248.5 	client's current level of functioning relative to functioning that is appropriate for someone 
248.6 	the client's age.
248.7 	The CCBHC functional assessment requirements replace the requirements in:
248.8 	(1) section 256B.0623, subdivision 9;
248.9 	(2) section 245.4711, subdivision 3; and
248.10 	(3) Minnesota Rules, part 9520.0914, subpart 2, items A and B.
248.11 		Subd. 14.Financial responsibility. "Financial responsibility" means the responsibility 
248.12 	for billing CCBHC services rendered under contract by a designated collaborating 
248.13 	organization.
248.14 		Subd. 15.Grievances. CCBHCs and designated collaborating organization providers 
248.15 	must allow all service recipients access to grievance procedures, which must satisfy the 
248.16 	minimum requirements of Medicaid and other grievance requirements including requirements 
248.17 	that may be mandated by relevant accrediting entities.
248.18 		Subd. 16.Initial evaluation. "Initial evaluation" means an evaluation that is designed 
248.19 	to gather and document initial components of the comprehensive evaluation, allowing the 
248.20 	assessor to formulate a preliminary diagnosis and the client to begin services.
248.21 		Subd. 17.Initial evaluation equivalents.  "Initial evaluation equivalents" means using 
248.22 	a process that is approved by the commissioner as an alternative to the initial evaluation.
248.23 		Subd. 18.Integrated treatment plan. "Integrated treatment plan" means a documented 
248.24 	plan of care that uses the American Society for Addiction Medicine's six dimensions criteria 
248.25 	as an organizational framework.
248.26 		Subd. 19.Limited English proficiency. "Limited English proficiency" includes 
248.27 	individuals who do not speak English as a primary language or who have a limited ability 
248.28 	to read, write, speak, or understand English and who may be eligible to receive language 
248.29 	assistance.
248.30 		Subd. 20.Outpatient withdrawal management. "Outpatient withdrawal management" 
248.31 	means a time-limited service delivered in an office setting, an outpatient behavioral health 
248.32 	clinic, or a person's home by staff providing medically supervised evaluation and 
249.1 	detoxification services to achieve safe and comfortable withdrawal from substances and 
249.2 	facilitate transition into ongoing treatment and recovery. Outpatient withdrawal management 
249.3 	services include assessment, withdrawal management, planning, medication prescribing 
249.4 	and management, trained observation of withdrawal symptoms, and supportive services.
249.5 		Subd. 21.Preliminary screening and risk assessment. "Preliminary screening and risk 
249.6 	assessment" means a screening and risk assessment that is completed at the first contact 
249.7 	with the prospective CCBHC service recipient and determines the acuity of recipient need.
249.8 		Subd. 22.Preliminary treatment plan. "Preliminary treatment plan" means an initial 
249.9 	plan of care that is written as a part of all initial evaluations, initial evaluation equivalents, 
249.10 	or comprehensive evaluations.
249.11 		Subd. 23.Needs assessment. "Needs assessment" means a systematic approach to 
249.12 	identifying community needs and determining program capacity to address the needs of the 
249.13 	population being served.
249.14 		Subd. 24.Scope of services. "Scope of services" means services that are published by 
249.15 	the commissioner and that constitute a CCBHC encounter that is eligible for the daily 
249.16 	bundled rate.
249.17 		Subd. 25.State-sanctioned crisis services. "State-sanctioned crisis services" means 
249.18 	adult and children's crisis response services conducted by an entity enrolled to provide crisis 
249.19 	services under section 256B.0624.

249.20 	EFFECTIVE DATE. This section is effective July 1, 2023, or upon federal approval, 
249.21 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
249.22 	when federal approval is obtained.

249.23 	Sec. 4. [245.7353] APPLICABILITY.
249.24 		Subdivision 1.Certification process. (a) The commissioner must establish a state 
249.25 	certification process for certified community behavioral health clinics that satisfy all federal 
249.26 	and state requirements necessary for CCBHCs certified under sections 245.7351 to 245.736 
249.27 	to be eligible for reimbursement under medical assistance, without service area limits based 
249.28 	on geographic area or region. The commissioner must consult with CCBHC stakeholders 
249.29 	before establishing and implementing changes in the certification process and requirements.
249.30 	(b) The certification process must:
249.31 	(1) evaluate whether the prospective or recertifying CCBHC meets all certification 
249.32 	requirements in this section;
250.1 	(2) evaluate whether the prospective or recertifying CCBHC meets the certification 
250.2 	requirements for all required services listed in section 245.7358; and
250.3 	(3) include a review period that includes a site visit or virtual site visit conducted using 
250.4 	two-way video conferencing technology within 90 calendar days of receipt of an application 
250.5 	for certification or recertification.
250.6 		Subd. 2.Certifications and licensures required. In addition to all other requirements 
250.7 	contained in sections 245.7351 to 245.736, a CCBHC must:
250.8 	(1) be certified as a mental health clinic under section 245I.20;
250.9 	(2) be licensed to provide substance use disorder treatment under chapter 245G;
250.10 	(3) be certified to provide children's therapeutic services and supports under section 
250.11 	256B.0943;
250.12 	(4) be certified to provide adult rehabilitative mental health services under section 
250.13 	256B.0623;
250.14 	(5) be enrolled to provide mental health crisis response services under section 256B.0624;
250.15 	(6) be enrolled to provide mental health targeted case management under section 
250.16 	256B.0625, subdivision 20;
250.17 	(7) comply with standards relating to mental health case management in Minnesota 
250.18 	Rules, parts 9520.0900 to 9520.0926; and
250.19 	(8) comply with standards relating to peer services under sections 256B.0615, 256B.0616, 
250.20 	and 245G.07, subdivision 2, clause (8), as applicable when peer services are provided.
250.21 		Subd. 3.Certification schedule. The commissioner must recertify CCBHCs no later 
250.22 	than 36 months from the date of initial certification or the date of the last recertification. 
250.23 	The commissioner must provide a 90-day notice in advance of recertification.
250.24 		Subd. 4.Variance authority. When the standards listed in sections 245.7351 to 245.736 
250.25 	or other applicable standards conflict or address similar issues in duplicative or incompatible 
250.26 	ways, the commissioner may grant variances to state requirements if the variances do not 
250.27 	conflict with federal requirements for services reimbursed under medical assistance. If 
250.28 	standards overlap, the commissioner may substitute all or a part of a licensure or certification 
250.29 	that is substantially the same as another licensure or certification. The commissioner must 
250.30 	consult with stakeholders as described in subdivision 1 before granting variances under this 
250.31 	subdivision. For the CCBHC that is certified but not approved for prospective payment 
251.1 	under section 256B.0625, subdivision 5m, the commissioner may grant a variance under 
251.2 	this paragraph if the variance does not increase the state share of costs.
251.3 		Subd. 5.Notice and opportunity for correction. If the commissioner finds that a 
251.4 	prospective or certified CCBHC has failed to comply with an applicable law or rule and 
251.5 	this failure does not imminently endanger health, safety, or rights of the persons served by 
251.6 	the program, the commissioner may issue a notice ordering a correction. The notice ordering 
251.7 	a correction must state the following in plain language:
251.8 	(1) the conditions that constitute a violation of the law or rule;
251.9 	(2) the specific law or rule violated; and
251.10 	(3) the time allowed to correct each violation.
251.11 		Subd. 6.County letter of support. A clinic that meets certification requirements for a 
251.12 	CCBHC under sections 245.7351 to 245.736 is not subject to any state law or rule that 
251.13 	requires a county contract or other form of county approval as a condition for licensure or 
251.14 	enrollment as a medical assistance provider. The commissioner must require evidence from 
251.15 	the CCBHC that it has an ongoing relationship with the county or counties it serves to 
251.16 	facilitate access and continuity of care, especially for individuals who are uninsured or who 
251.17 	may go on and off medical assistance.
251.18 		Subd. 7.Decertification, denial of certification, or recertification request. (a) The 
251.19 	commissioner must establish a process for decertification and must require corrective action, 
251.20 	medical assistance repayment, or decertification of a CCBHC that no longer meets the 
251.21 	requirements in this section.
251.22 	(b) The commissioner must provide the following to providers for the certification, 
251.23 	recertification, and decertification process:
251.24 	(1) a structured listing of required provider certification criteria;
251.25 	(2) a formal written letter with a determination of certification, recertification, or 
251.26 	decertification, signed by the commissioner or the appropriate division director; and
251.27 	(3) a formal written communication outlining the process for necessary corrective action 
251.28 	and follow-up by the commissioner if applicable.
251.29 		Subd. 8.Demonstration entities. The commissioner may operate the demonstration 
251.30 	program established by section 223 of the Protecting Access to Medicare Act if federal 
251.31 	funding for the demonstration program remains available from the United States Department 
251.32 	of Health and Human Services. To the extent practicable, the commissioner shall align the 
252.1 	requirements of the demonstration program with the requirements under sections 245.7351 
252.2 	to 245.736 for CCBHCs receiving medical assistance reimbursement. A CCBHC may not 
252.3 	apply to participate as a billing provider in both the CCBHC federal demonstration and the 
252.4 	benefit for CCBHCs under the medical assistance program.

252.5 	EFFECTIVE DATE. This section is effective July 1, 2023, or upon federal approval, 
252.6 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
252.7 	when federal approval is obtained.

252.8 	Sec. 5. [245.7354] GOVERNANCE AND ORGANIZATIONAL STRUCTURE.
252.9 		Subdivision 1.Eligible providers. (a) An eligible CCBHC must be:
252.10 	(1) a nonprofit organization, exempt from tax under section 501(c)(3) of the United 
252.11 	States Internal Revenue Code;
252.12 	(2) part of a local government behavioral health authority;
252.13 	(3) operated under the authority of the Indian Health Service, an Indian Tribe, or Tribal 
252.14 	organization pursuant to a contract, grant, cooperative agreement, or compact with the Indian 
252.15 	Health Service pursuant to the Indian Self-Determination Act; or
252.16 	(4) an urban Indian organization pursuant to a grant or contract with the Indian Health 
252.17 	Service under Title V of the Indian Health Care Improvement Act.
252.18 	(b) A CCBHC must maintain documentation establishing its conformity with this section.
252.19 		Subd. 2.Collaboration with American Indian and Alaska Native entities. (a) A 
252.20 	CCBHC must enter into arrangements with the Indian Health Service and any Indian Tribes 
252.21 	or Tribal or urban Indian organizations within their geographic service area to assist with 
252.22 	and inform the provision of services for American Indian and Alaska Native clients.
252.23 	(b) A CCBHC operated by the Indian Health Service, an Indian Tribe, or a Tribal or 
252.24 	urban Indian organization is exempt from the requirement in paragraph (a).
252.25 		Subd. 3.Board members. (a) CCBHC board members must be representative of the 
252.26 	individuals being served by the CCBHC in terms of geographic area, race, ethnicity, sex, 
252.27 	gender identity, disability, age, sexual orientation, and types of disorders served. A CCBHC 
252.28 	must incorporate meaningful participation by adult clients with mental illness, adults 
252.29 	recovering from substance use disorders, and family members of CCBHC clients by:
252.30 	(1) having a board that is comprised of at least 51 percent clients, people in recovery 
252.31 	from behavioral health conditions, or their family members; or
253.1 	(2) having a substantial portion of the governing board members meeting the criteria in 
253.2 	clause (1) and implementing other specifically described methods for clients, people in 
253.3 	recovery, and their  family members to provide meaningful input to the board about the 
253.4 	CCBHCs policies, processes, and services.
253.5 	(b) A CCBHC must demonstrate to the commissioner how it meets the requirement in 
253.6 	paragraph (a) or develop a transition plan with timelines appropriate to its governing board 
253.7 	size and target population to meet this requirement.
253.8 	(c) A CCBHC owned or operated by the state, a local government, a Tribal entity, or a 
253.9 	subsidiary or part of a larger corporate organization that cannot meet these requirements 
253.10 	for board membership shall notify the commissioner, specify the reasons why the CCBHC 
253.11 	cannot meet these requirements, and document that the CCBHC has developed or will 
253.12 	develop an advisory structure and other specifically described methods for clients, persons 
253.13 	in recovery, and family members to provide meaningful input to the board about the 
253.14 	CCBHC's policies, processes, and services.
253.15 	(d) As an alternative to the board membership requirement in paragraph (a), a CCBHC 
253.16 	may establish and implement other means of enhancing its governing body's ability to ensure 
253.17 	that the CCBHC is responsive to the needs of its clients, families, and communities. Efforts 
253.18 	to ensure responsiveness must focus on the full range of clients, services provided, geographic 
253.19 	areas covered, types of disorders, and levels of care provided. A CCBHC must seek approval 
253.20 	from the commissioner for any proposed alternative under this paragraph. If the commissioner 
253.21 	rejects a proposed alternative, the commissioner must require that additional or different 
253.22 	mechanisms be established to ensure that the board is responsive to the needs of CCBHC 
253.23 	clients and families. Every CCBHC approved under this paragraph must make publicly 
253.24 	available the changed outcomes and other results of the alternative means and structures 
253.25 	employed under this paragraph.
253.26 	(e) Members of a CCBHC's governing or advisory boards must also be representative 
253.27 	of the communities in the CCBHC's service area and must be selected for expertise in health 
253.28 	services, community affairs, local government, finance and banking, legal affairs, trade 
253.29 	unions, faith communities, commercial and industrial concerns, or social service agencies 
253.30 	within the communities served. No more than one-half of the governing board members 
253.31 	may derive more than 10 percent of their annual income from the health care industry.

253.32 	EFFECTIVE DATE. This section is effective July 1, 2023, or upon federal approval, 
253.33 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
253.34 	when federal approval is obtained.

254.1 	Sec. 6. [245.7355] MINIMUM STAFFING STANDARDS.
254.2 		Subdivision 1.Generally. (a) A CCBHC must meet minimum staffing requirements as 
254.3 	identified in the certification process in the needs assessment under section 245.7357, 
254.4 	subdivision 5.
254.5 	(b) A CCBHC must employ or contract for clinic staff who have backgrounds in diverse 
254.6 	disciplines, including licensed mental health professionals, licensed alcohol and drug 
254.7 	counselors, staff who are culturally and linguistically trained to meet the needs of the 
254.8 	population the clinic serves, and staff who are trained to make accommodations to meet the 
254.9 	needs of clients with disabilities.
254.10 		Subd. 2.Management team requirements. (a) The management team must include, 
254.11 	at minimum, a chief executive officer or executive director and a medical director.
254.12 	(b) The medical director does not need to be a full-time employee of the CCBHC.
254.13 	(c) Depending on the size of the CCBHC, both positions may be held by the same person.
254.14 	(d) The medical director must ensure the medical component of care and the integration 
254.15 	of behavioral health, including addictions, and primary care are facilitated.
254.16 	(e) The medical director must be a medically trained behavioral health care provider 
254.17 	with appropriate education and licensure with prescription authority in psychopharmacology 
254.18 	who can prescribe and manage medications independently.
254.19 		Subd. 3.Providers licensed to manage medication.  The CCBHC must directly employ 
254.20 	or through formal arrangement utilize a medically trained behavioral health care provider 
254.21 	who can independently prescribe and manage medications, including buprenorphine and 
254.22 	other medications used to treat opioid and alcohol use disorders.
254.23 		Subd. 4.Alcohol and drug counselors. A CCBHC must have staff, either directly 
254.24 	employed or available through formal arrangements, who are credentialed substance use 
254.25 	disorder specialists licensed under chapter 148F.
254.26 		Subd. 5.Peer services.  A CCBHC must have staff, either directly employed or available 
254.27 	through formal arrangements, who are credentialed to provide peer support services under 
254.28 	section 256B.0615, 256B.0616, or 245G.07, subdivision 2, clause (8).

254.29 	EFFECTIVE DATE. This section is effective July 1, 2023, or upon federal approval, 
254.30 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
254.31 	when federal approval is obtained.

255.1 	Sec. 7. [245.7356] TRAINING REQUIREMENTS.
255.2 		Subdivision 1.Training plan. (a) A CCBHC must follow training plan requirements 
255.3 	in existing statutes for specific certifications, licenses, providers, or service lines.
255.4 	(b) A CCBHC must have a training plan, for all employed and contracted staff, and for 
255.5 	providers at designated collaborating organizations who have contact with CCBHC clients.
255.6 		Subd. 2.Training requirements. (a) A CCBHC must ensure that any staff who is not 
255.7 	a veteran has training about military and veterans' culture in order to be able to understand 
255.8 	the unique experiences and contributions of those who have served their country.
255.9 	(b) At orientation and annually, a CCBHC must provide training about: (1) risk 
255.10 	assessment, suicide prevention, and suicide response; and (2) the roles of families and peers.
255.11 	(c) Credentialed personnel must comply with state licensing or certification requirements 
255.12 	and other requirements issued by the commissioner in accordance with requirements under 
255.13 	the Medicaid state plan.

255.14 	EFFECTIVE DATE. This section is effective July 1, 2023, or upon federal approval, 
255.15 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
255.16 	when federal approval is obtained.

255.17 	Sec. 8. [245.7357] ACCESSIBILITY AND AVAILABILITY OF SERVICES.
255.18 		Subdivision 1.Accessibility and availability of services.  (a) A CCBHC must ensure 
255.19 	that clinic services are available and accessible to individuals and families of all ages and 
255.20 	genders and that crisis management services are available 24 hours per day.
255.21 	(b) A CCBHC must provide a safe, functional, clean, and welcoming environment for 
255.22 	clients and staff, conducive to the provision of services identified in program requirement.
255.23 	(c) A CCBHC must provide outpatient clinical services during times that ensure 
255.24 	accessibility and meet the needs of the client population to be served, including some nights 
255.25 	and weekend hours.
255.26 	(d) If a CCBHC serves individuals with limited English proficiency or with 
255.27 	language-based disabilities, the CCBHC must take reasonable steps to provide meaningful 
255.28 	access to services for those clients.
255.29 	(e) A CCBHC must use culturally and linguistically appropriate screening tools and 
255.30 	approaches that accommodate disabilities when appropriate.
256.1 	(f) A CCBHC must ensure that interpretation and translation service are provided that 
256.2 	are appropriate and timely for the size and needs of the limited-English-proficiency CCBHC 
256.3 	client population. Any translation service providers must be trained to function in a medical 
256.4 	and, preferably, a behavioral health setting.
256.5 	(g) A CCBHC must ensure that documents or messages vital to a client's ability to access 
256.6 	services, such as registration forms, sliding scale fee discount schedules, after-hours coverage, 
256.7 	and signage are available for clients in languages common in the community served. A 
256.8 	CCBHC must take into account literacy levels and the need for alternative formats for clients 
256.9 	with disabilities. Such materials must be provided in a timely manner at intake. The requisite 
256.10 	languages must be informed by the needs assessment prepared prior to certification and 
256.11 	updated as necessary.
256.12 		Subd. 2.Sliding fee scales. (a) A CCBHC must establish fees for clinic services for 
256.13 	individuals who are not enrolled in medical assistance using a sliding fee to ensure that 
256.14 	services to clients are not denied or limited due to an individual's inability to pay for services.
256.15 	(b) The CCBHC must have written policies and procedures describing eligibility for 
256.16 	and implementation of the sliding fee discount schedule. The policies under this subdivision 
256.17 	must be applied equally to all individuals seeking services.
256.18 	(c) The CCBHC must ensure that no individual is denied behavioral health care services, 
256.19 	including but not limited to crisis management services, because of place of residence or 
256.20 	homelessness or lack of a permanent address.
256.21 		Subd. 3.Access accommodations.  (a) A CCBHC must have protocols addressing the 
256.22 	needs of clients who do not live close to the CCBHC or within the CCBHC's geographic 
256.23 	service area. A CCBHC must provide, at a minimum, crisis response, evaluation, and 
256.24 	stabilization services regardless of place of residence. The required protocols under this 
256.25 	subdivision must address management of an out-of-geographic-area individual's ongoing 
256.26 	treatment needs beyond those required under this paragraph. The protocols may provide 
256.27 	for agreements with clinics in other localities, allowing CCBHCs to refer and track clients 
256.28 	seeking noncrisis services to the CCBHC or other clinic serving the client's county of 
256.29 	residence. For distant clients within the CCBHC's geographic service area, CCBHCs shall 
256.30 	consider the use of telehealth or telemedicine to the extent practicable. In no circumstances 
256.31 	may any individual be refused services because of place of residence.
256.32 	(b) To the extent possible, a CCBHC must provide transportation or transportation 
256.33 	vouchers for clients.
257.1 	(c) To the extent possible, a CCBHC must utilize mobile in-home, telehealth and 
257.2 	telemedicine, and online treatment services to ensure clients have access to all required 
257.3 	services.
257.4 	(d) A CCBHC must engage in outreach and engagement activities to assist individuals 
257.5 	and families to access benefits and formal or informal services to address behavioral health 
257.6 	conditions and needs.
257.7 	(e) Consistent with requirements of privacy, confidentiality, and client preference and 
257.8 	need, a CCBHC must assist individuals and families of children and youth referred to 
257.9 	external providers or resources in obtaining an appointment and must confirm the 
257.10 	appointment was kept.
257.11 		Subd. 4.Addressing cultural needs. A CCBHC must ensure all CCBHC services, 
257.12 	including those supplied by its designated collaborating organizations, conform to the 
257.13 	requirements of section 2402(a) of the Affordable Care Act; reflect person- and 
257.14 	family-centered, recovery-oriented care; and are respectful of the individual's needs, 
257.15 	preferences, and values. Person-centered and family-centered care includes care that 
257.16 	recognizes the particular cultural and other needs of the individual. This includes but is not 
257.17 	limited to services for clients who are American Indian or Alaska Native (AI/AN), for whom 
257.18 	access to traditional approaches or medicines may be part of CCBHC services. For clients 
257.19 	who are AI/AN, these services may be provided either directly or by formal arrangement 
257.20 	with Tribal providers.
257.21 		Subd. 5.Needs assessment. As part of the process leading to certification, the 
257.22 	commissioner must prepare an assessment of the needs of a prospective CCBHC's target 
257.23 	client population and a staffing plan. The needs assessment must include cultural, linguistic, 
257.24 	and treatment needs. The needs assessment must be performed prior to certification of a 
257.25 	CCBHC in order to inform staffing and services. After certification, a CCBHC must update 
257.26 	the needs assessment and the staffing plan, including both client and family and caregiver 
257.27 	input. The needs assessment and staffing plan must be updated no less frequently than every 
257.28 	three years.

257.29 	EFFECTIVE DATE. This section is effective July 1, 2023, or upon federal approval, 
257.30 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
257.31 	when federal approval is obtained.

258.1 	Sec. 9. [245.7358] REQUIRED SERVICES.
258.2 		Subdivision 1.Generally. CCBHCs must provide nine  core services identified in 
258.3 	subdivisions 2 and 3.
258.4 		Subd. 2.Required services to be provided directly. Unless otherwise specified in 
258.5 	sections 245.7351 to 245.736 and approved by the commissioner, a CCBHC must directly 
258.6 	provide the following:
258.7 	(1) ambulatory withdrawal management services ASAM levels 1.0 and 2.0;
258.8 	(2) treatment planning;
258.9 	(3) screening, assessment, diagnosis, and risk assessment;
258.10 	(4) outpatient mental health treatment; and
258.11 	(5) substance use disorder treatment services for both adult and adolescent populations.
258.12 		Subd. 3.Direct or contracted required services. A CCBHC must provide the following 
258.13 	services directly or via formal relationships with designated collaborating organizations:
258.14 	(1) targeted case management;
258.15 	(2) outpatient primary care screening and monitoring;
258.16 	(3) community-based mental health care for veterans;
258.17 	(4) peer, family support, and counselor services;
258.18 	(5) psychiatric rehabilitation services; and
258.19 	(6) crisis services conducted by a state-sanctioned provider.
258.20 		Subd. 4.Care coordination required. A CCBHC must directly provide coordination 
258.21 	of care across settings and providers to ensure seamless transitions for individuals being 
258.22 	served across the full spectrum of health services, including acute, chronic, and behavioral 
258.23 	needs. Care coordination may be accomplished through partnerships or formal contracts 
258.24 	with:
258.25 	(1) counties, health plans, pharmacists, pharmacies, rural health clinics, federally qualified 
258.26 	health centers, inpatient psychiatric facilities, substance use and detoxification facilities, or 
258.27 	community-based mental health providers; and
258.28 	(2) other community services, supports, and providers, including schools, child welfare 
258.29 	agencies, juvenile and criminal justice agencies, Indian health services clinics, Tribally 
258.30 	licensed health care and mental health facilities, urban Indian health clinics, Department of 
259.1 	Veterans Affairs medical centers, outpatient clinics, drop-in centers, acute care hospitals, 
259.2 	and hospital outpatient clinics.
259.3 		Subd. 5.Outreach and engagement required.  A CCBHC must provide outreach and 
259.4 	engagement services to the community, including promoting accessibility and culturally 
259.5 	and linguistically competent care, educating prospective CCBHC recipients about available 
259.6 	services, and connecting prospective CCBHC recipients with needed services.
259.7 		Subd. 6.Initial evaluation; required elements. (a) An initial evaluation must be 
259.8 	completed by a mental health professional or clinical trainee and approved by a mental 
259.9 	health professional as defined in section 245I.04, subdivision 2.
259.10 	(b) The timing of initial evaluation administration must be determined based on results 
259.11 	of the preliminary screening and risk assessment. If a client is assessed to be experiencing 
259.12 	a crisis-level behavioral health need, care must be provided immediately or within three 
259.13 	hours. If an urgent need is identified, the initial evaluation must be completed within one 
259.14 	business day. For all other new clients, an initial evaluation is required within ten business 
259.15 	days of the preliminary screening and risk assessment.
259.16 	(c) Initial evaluation equivalents, as defined by the commissioner, may be completed to 
259.17 	satisfy the requirement for the initial evaluation under this subdivision.
259.18 	(d) The initial evaluation must include the following components:
259.19 	(1) all data elements listed in section 245I.10, subdivision 5;
259.20 	(2) the client's gender, ethnicity, and race;
259.21 	(3) the client's insurance type and status and referral source;
259.22 	(4) the client's primary and secondary language;
259.23 	(5) the client's current housing status;
259.24 	(6) for a client reporting substance use, an assessment of withdrawal potential;
259.25 	(7) a list of current prescriptions and over-the-counter medications, as well as other 
259.26 	substances the client may be taking;
259.27 	(8) an assessment of whether the client is a risk to self or to others, including suicide 
259.28 	risk factors;
259.29 	(9) an assessment of whether the client has other concerns for their safety;
259.30 	(10) an assessment of need for medical care with referral and follow-up as required;
260.1 	(11) a determination of whether the client presently is or ever has been a member of the 
260.2 	United States armed forces; and
260.3 	(12) recommendations for services and preliminary treatment plan.
260.4 	(e) For programs governed by sections 245.7351 to 245.736, the CCBHC initial evaluation 
260.5 	requirements in this subdivision satisfy the requirements in:
260.6 	(1) section 245I.10, subdivision 5;
260.7 	(2) section 256B.0943, subdivisions 3 and 6, paragraph (b), clauses (1) and (2);
260.8 	(3) section 256B.0623, subdivision 3, clause (4);
260.9 	(4) section 245.4881, subdivisions 3 and 4;
260.10 	(5) section 245.4711, subdivisions 3 and 4;
260.11 	(6) Minnesota Rules, part 9520.0909, subpart 1;
260.12 	(7) Minnesota Rules, part 9520.0910, subpart 1;
260.13 	(8) Minnesota Rules, part 9520.0914, subpart 2, items A and B;
260.14 	(9) Minnesota Rules, part 9520.0918, subparts 1 and 2; and
260.15 	(10) Minnesota Rules, part 9520.0919, subparts 1 and 2.
260.16 		Subd. 7.Comprehensive evaluation; required elements. (a) All new CCBHC clients 
260.17 	must receive a comprehensive person-centered and family-centered diagnostic and treatment 
260.18 	planning evaluation to be completed within 60 calendar days following the preliminary 
260.19 	screening and risk assessment.
260.20 	(b) The comprehensive evaluation must be completed by a mental health professional 
260.21 	or clinical trainee and approved by a mental health professional as defined in section 245I.04, 
260.22 	subdivision 2.
260.23 	(c) A comprehensive evaluation includes a review and synthesis of existing information 
260.24 	obtained from external sources, including the use of an externally completed diagnostic 
260.25 	assessment, internal staff, preliminary screening and risk assessment, crisis assessment, 
260.26 	initial evaluation, primary care screenings, and other services received at the CCBHC.
260.27 	(d) The assessor must complete a client's comprehensive evaluation within the client's 
260.28 	cultural context.
261.1 	(e) When a CCBHC client is engaged in substance use disorder services provided by 
261.2 	the CCBHC, the comprehensive evaluation must also be approved by an alcohol and drug 
261.3 	counselor as defined in section 245G.11, subdivision 5.
261.4 	(f) A CCBHC comprehensive evaluation completed according to the standards in 
261.5 	subdivision 7 replaces the requirements for a comprehensive assessment in section 245G.05, 
261.6 	subdivision 1, if the following items are included in the comprehensive evaluation:
261.7 	(1) chemical use history, including the amounts and types of chemicals, frequency and 
261.8 	duration, periods of abstinence, and circumstances of relapse;
261.9 	(2) for each chemical used within the previous 30 days, the date and time of most recent 
261.10 	use and withdrawal potential;
261.11 	(3) previous attempts at treatment for chemical use or gambling;
261.12 	(4) problem behaviors when under the influence of chemicals; and
261.13 	(5) legal interventions and arrests.
261.14 	(g) The comprehensive evaluation must include the following components:
261.15 	(1) all data elements listed in section 245I.10, subdivision 6;
261.16 	(2) the client's gender, ethnicity, and race;
261.17 	(3) the client's insurance status and type and referral source;
261.18 	(4) the client's primary and secondary language;
261.19 	(5) a determination of whether the client presently is or ever has been a member of the 
261.20 	United States armed forces;
261.21 	(6) if an initial evaluation was completed, an update on each component;
261.22 	(7) for a client who reports substance use, an assessment of withdrawal potential;
261.23 	(8) an assessment of need for medical care and follow-up as required;
261.24 	(9) any drug allergies;
261.25 	(10) the client's legal issues;
261.26 	(11) the client's parenting status; and
261.27 	(12) any data obtained from administration of an approved depression screening tool.
261.28 	(h) A comprehensive evaluation must be updated at least annually for all adult clients 
261.29 	who continue to engage in behavioral health services, and:
262.1 	(1) when the client's presentation does not appear to align with the current diagnostic 
262.2 	formulation; or
262.3 	(2) when the client or mental health professional suspect the emergence of a new 
262.4 	diagnosis.
262.5 	(i) A comprehensive evaluation update must contain the following components:
262.6 	(1) a written update detailing all significant new or changed mental health symptoms, 
262.7 	as well as a description of how the new or changed symptoms are impacting functioning;
262.8 	(2) any diagnostic formulation updates, including rationale for new diagnoses as needed; 
262.9 	and
262.10 	(3) a rationale for removal of any existing diagnoses, as needed.
262.11 	(j) When completing a comprehensive evaluation of a client who is five years of age or 
262.12 	younger, the assessor must use the current edition of the DC: 0-5 Diagnostic Classification 
262.13 	of Mental Health and Development Disorders of Infancy and Early Childhood published 
262.14 	by Zero to Three. The comprehensive evaluation of children age five years and younger:
262.15 	(1) must include an initial session without the client present and may include treatment 
262.16 	to the parents or guardians along with inquiring about the child;
262.17 	(2) may consist of three to five separate encounters;
262.18 	(3) must incorporate the level of care assessment;
262.19 	(4) must be completed prior to recommending additional CCBHC services; and
262.20 	(5) must not contain scoring of the American Society of Addiction Medicine six 
262.21 	dimensions.
262.22 	(k) For programs governed by sections 245.7351 to 245.736, the CCBHC initial 
262.23 	evaluation requirements in this subdivision satisfy the requirements in:
262.24 	(1) section 245I.10, subdivision 2a;
262.25 	(2) section 245I.10, subdivisions 4 to 6;
262.26 	(3) section 245G.04, subdivision 1;
262.27 	(4) section 256B.0943, subdivisions 3 and 6, paragraph (b), clause (1);
262.28 	(5) section 256B.0623, subdivision 3, clause (4);
262.29 	(6) section 245.4711, subdivision 2;
262.30 	(7) section 245.4881, subdivision 2;
263.1 	(8) Minnesota Rules, part 9520.0910, subpart 1;
263.2 	(9) Minnesota Rules, part 9520.0909, subpart 1; and
263.3 	(10) Minnesota Rules, part 9520.0914, subpart 2, items A and B.
263.4 		Subd. 8.Integrated treatment plan; required elements. (a) An integrated treatment 
263.5 	plan must be approved by a mental health professional as defined in section 245I.04, 
263.6 	subdivision 2.
263.7 	(b) An integrated treatment plan must be completed within 60 calendar days following 
263.8 	the completion of the preliminary screening and risk assessment.
263.9 	(c) An integrated treatment plan must use the American Society of Addiction Medicine 
263.10 	six-dimensional framework; be structured as defined in section 245I.10, subdivisions 7 and 
263.11 	8; and use a person- and family-centered planning process that includes the client, any 
263.12 	family or client-identified natural supports, CCBHC service providers, and care coordination 
263.13 	staff.
263.14 	(d) An integrated treatment plan must be updated at least every six months or earlier 
263.15 	based on changes in the client's circumstances.
263.16 	(e) When a client is engaged in substance use disorder services at a CCBHC, the 
263.17 	integrated treatment plan must also be approved by an alcohol and drug counselor as defined 
263.18 	in section 245G.11, subdivision 5.
263.19 	(f) The treatment plan must integrate prevention, medical and behavioral health needs, 
263.20 	and service delivery and must be developed by the CCBHC in collaboration with and 
263.21 	endorsed by the client, the adult client's family to the extent the client wishes, or family or 
263.22 	caregivers of youth and children. The treatment plan must also be coordinated with staff or 
263.23 	programs necessary to carry out the plan.
263.24 	(g) The CCBHC integrated treatment plan requirements in this subdivision replaces the 
263.25 	requirements in sections:
263.26 	(1) 256B.0943, subdivision 6, paragraph (b), clause (2);
263.27 	(2) 245I.10, subdivisions 7 and 8;
263.28 	(3) 245G.06, subdivision 1; and
263.29 	(4) 245G.09, subdivision 3, clause (6).
263.30 		Subd. 9.Exemptions to evaluation and treatment planning requirements. (a) In 
263.31 	situations where a CCBHC client is receiving exclusively psychiatric evaluation and 
264.1 	management services and no other CCBHC services, the psychiatric history and physical 
264.2 	fulfills requirements for the comprehensive evaluation, and a separate comprehensive 
264.3 	evaluation is not required.
264.4 	(b) Each new client must have a preliminary screening and risk assessment.
264.5 	(c) Evaluation and management documentation and treatment goals fulfill requirements 
264.6 	for the CCBHC integrated treatment plan.
264.7 	(d) Comprehensive evaluation updates and integrated treatment plan updates are not 
264.8 	required for clients receiving exclusively psychiatric evaluation and management services.
264.9 	(e) If the client is subsequently referred to any other CCBHC service, a comprehensive 
264.10 	evaluation and integrated treatment plan must be completed within 60 calendar days of the 
264.11 	referral, and the client must have comprehensive evaluation and integrated treatment plan 
264.12 	updates as defined in subdivisions 7 and 8.
264.13 	(f) Clients receiving exclusively psychiatric evaluation and management services must 
264.14 	be provided with information about the full array of services available to them within the 
264.15 	CCBHC at the first appointment for new clients and next scheduled appointment for existing 
264.16 	clients. This can be accomplished via face-to-face meeting with a care coordinator or 
264.17 	incorporated into a scheduled meeting with the psychiatric provider. The provider must 
264.18 	document client receipt of this information within the client's electronic health record.

264.19 	EFFECTIVE DATE. This section is effective July 1, 2023, or upon federal approval, 
264.20 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
264.21 	when federal approval is obtained.

264.22 	Sec. 10. [245.7359] REQUIRED EVIDENCE-BASED SERVICES.
264.23 		Subdivision 1.Generally. A CCBHC must use evidence-based practices in all services. 
264.24 	Treatments must be provided in a manner appropriate for each client's phase of life and 
264.25 	development, specifically considering what is appropriate for children, adolescents, 
264.26 	transition-age youth, and older adults, as distinct groups for whom life stage and functioning 
264.27 	may affect treatment. Specifically, when treating children and adolescents, a CCHBC must 
264.28 	provide evidence-based services that are developmentally appropriate, youth guided, and 
264.29 	family and caregiver driven. When treating older adults, an individual client's desires and 
264.30 	functioning must be considered, and appropriate evidence-based treatments must be provided. 
264.31 	When treating individuals with developmental or other cognitive disabilities, level of 
264.32 	functioning must be considered, and appropriate evidence-based treatments must be provided. 
265.1 	The treatments referenced in this subdivision must be delivered by staff with specific training 
265.2 	in treating the segment of the population being served.
265.3 		Subd. 2.Required evidence-based practices. A CCBHC must use evidence-based 
265.4 	practices, including the use of cognitive behavioral therapy, motivational interviewing, 
265.5 	stages of change, and trauma treatment appropriate for populations being served.
265.6 		Subd. 3.Issuance of and amendments to evidence-based practices requirements. The 
265.7 	commissioner must issue a list of required evidence-based practices to be delivered by 
265.8 	CCBHCs and may also provide a list of recommended evidence-based practices. The 
265.9 	commissioner may update the list to reflect advances in outcomes research and medical 
265.10 	services for persons living with mental illnesses or substance use disorders. The commissioner 
265.11 	must take into consideration the adequacy of evidence to support the efficacy of the practice, 
265.12 	the quality of workforce available, and the current availability of the practice in the state. 
265.13 	At least 30 days before issuing the initial list and any revisions, the commissioner must 
265.14 	provide stakeholders with an opportunity to comment.

265.15 	EFFECTIVE DATE. This section is effective July 1, 2023, or upon federal approval, 
265.16 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
265.17 	when federal approval is obtained.

265.18 	Sec. 11. [245.736] DESIGNATED COLLABORATING ORGANIZATION.
265.19 		Subdivision 1.Generally. A CCBHC must directly provide a core set of services listed 
265.20 	in section 245.7358, subdivision 2, and may directly provide or contract for the remainder 
265.21 	of the services listed in section 245.7358, subdivision 3, with a designated collaborating 
265.22 	organization as defined in section 245.7351, subdivision 10, that has the required authority 
265.23 	to provide that service and that meets the criteria as a designated collaborating organization 
265.24 	under subdivision 2.
265.25 		Subd. 2.Designated collaborating organization requirements. (a) A CCBHC providing 
265.26 	CCBHC services via a designated collaborating organization agreement must:
265.27 	(1) have a formal agreement, as defined in section 245.7351, subdivision 11, with the 
265.28 	designated collaborating organization to furnish one or more of the allowable services listed 
265.29 	under section 245.7358, subdivision 3;
265.30 	(2) ensure that CCBHC services provided by a designated collaborating organization 
265.31 	must be provided in accordance with CCBHC service standards and provider requirements;
265.32 	(3) maintain responsibility for coordinating care and clinical and financial responsibility 
265.33 	for the services provided by a designated collaborating organization;
266.1 	(4) as applicable and necessary, ensure that a contracted designated collaborating 
266.2 	organization participates in CCBHC care coordination activities, including utilizing health 
266.3 	information technology to facilitate coordination and care transfers across organizations 
266.4 	and arranging access to data necessary for quality and financial operations and reporting;
266.5 	(5) ensure beneficiaries receiving CCBHC services at the designated collaborating 
266.6 	organization have access to the CCBHC grievance process;
266.7 	(6) submit all designated collaborating organization agreements for review and approval 
266.8 	by the commissioner prior to the designated collaborating organization furnishing CCBHC 
266.9 	services; and
266.10 	(7) meet any additional requirements issued by the commissioner.
266.11 	(b) Designated collaborating organization agreements must be submitted during the 
266.12 	certification process. Adding new designated collaborating organization relationships after 
266.13 	initial certification requires updates to the CCBHC certification. A CCBHC must update 
266.14 	designated collaborating organization information and the designated collaborating 
266.15 	organization agreement with the commissioner a minimum of 30 days prior to the execution 
266.16 	of a designated collaborating organization agreement. The commissioner must review and 
266.17 	approve or offer recommendations for designated collaborating organization agreement 
266.18 	modifications
266.19 	(c) Designated collaborating organizations furnishing services under an agreement with 
266.20 	CCBHCs must meet all standards established in sections 245.7351 to 245.736 for the service 
266.21 	the designated collaborating organization is providing. CCBHCs maintain responsibility 
266.22 	for care coordination and are clinically and financially responsible for CCBHC services 
266.23 	provided by a designated collaborating organization.
266.24 	(d) Designated collaborating organization financial and payment processes must follow 
266.25 	those outlined in section 256B.0625, subdivision 5m, paragraph (c), clause (10).
266.26 		Subd. 3.Designated collaborative organization agreements. Designated collaborative 
266.27 	organization agreements must include:
266.28 	(1) the scope of CCBHC services to be furnished;
266.29 	(2) the payment methodology and rates for purchased services;
266.30 	(3) a requirement that the CCBHC maintains financial and clinical responsibility for 
266.31 	services provided by the designated collaborating organization;
266.32 	(4) a requirement that the CCBHC retains responsibility for care coordination;
267.1 	(5) a requirement that the designated collaborating organization must have the necessary 
267.2 	certifications, licenses, and enrollments to provide the services;
267.3 	(6) a requirement that the staff providing CCBHC services within the designated 
267.4 	collaborating organization must have the proper licensure for the services provided;
267.5 	(7) a requirement that the designated collaborating organization meets CCBHC cultural 
267.6 	competency and training requirements;
267.7 	(8) a requirement that the designated collaborating organization must follow all federal, 
267.8 	state, and CCBHC requirements for confidentiality and data privacy;
267.9 	(9) a requirement that the designated collaborating organization must follow the grievance 
267.10 	procedures of the CCBHC;
267.11 	(10) a requirement that the designated collaborating organization must follow the CCBHC 
267.12 	requirements for person- and family-centered, recovery-oriented care, being respectful of 
267.13 	the individual person's needs, preferences, and values, and ensuring involvement by the 
267.14 	person being served and self-direction of services received. Services for children and youth 
267.15 	must be family-centered, youth-guided, and developmentally appropriate;
267.16 	(11) a requirement that clients seeking services must have freedom of choice of providers;
267.17 	(12) a requirement that the designated collaborating organization must be part of the 
267.18 	CCBHCs health information technology system directly or through data integration;
267.19 	(13) a requirement that the designated collaborating organization must provide all clinical 
267.20 	and financial data necessary to support CCBHC required service and billing operations; 
267.21 	and
267.22 	(14) a requirement that the CCBHC and the designated collaborating organization have 
267.23 	safeguards in place to ensure that the designated collaborating organization does not receive 
267.24 	a duplicate payment for services that are included in the CCBHC's daily bundled rate.

267.25 	EFFECTIVE DATE. This section is effective July 1, 2023, or upon federal approval, 
267.26 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
267.27 	when federal approval is obtained.

267.28 	Sec. 12. Minnesota Statutes 2022, section 245A.02, subdivision 2c, is amended to read:
267.29 		Subd. 2c.Annual or annually; family child care training requirements. For the 
267.30 	purposes of sections 245A.50 to 245A.53, "annual" or "annually" means the 12-month 
267.31 	period beginning on the license effective date or the annual anniversary of the effective date 
268.1 	and ending on the day prior to the annual anniversary of the license effective date each 
268.2 	calendar year.

268.3 	Sec. 13. Minnesota Statutes 2022, section 245A.04, subdivision 1, is amended to read:
268.4 		Subdivision 1.Application for licensure. (a) An individual, organization, or government 
268.5 	entity that is subject to licensure under section 245A.03 must apply for a license. The 
268.6 	application must be made on the forms and in the manner prescribed by the commissioner. 
268.7 	The commissioner shall provide the applicant with instruction in completing the application 
268.8 	and provide information about the rules and requirements of other state agencies that affect 
268.9 	the applicant. An applicant seeking licensure in Minnesota with headquarters outside of 
268.10 	Minnesota must have a program office located within 30 miles of the Minnesota border. 
268.11 	An applicant who intends to buy or otherwise acquire a program or services licensed under 
268.12 	this chapter that is owned by another license holder must apply for a license under this 
268.13 	chapter and comply with the application procedures in this section and section 245A.03.
268.14 	The commissioner shall act on the application within 90 working days after a complete 
268.15 	application and any required reports have been received from other state agencies or 
268.16 	departments, counties, municipalities, or other political subdivisions. The commissioner 
268.17 	shall not consider an application to be complete until the commissioner receives all of the 
268.18 	required information.
268.19 	When the commissioner receives an application for initial licensure that is incomplete 
268.20 	because the applicant failed to submit required documents or that is substantially deficient 
268.21 	because the documents submitted do not meet licensing requirements, the commissioner 
268.22 	shall provide the applicant written notice that the application is incomplete or substantially 
268.23 	deficient. In the written notice to the applicant the commissioner shall identify documents 
268.24 	that are missing or deficient and give the applicant 45 days to resubmit a second application 
268.25 	that is substantially complete. An applicant's failure to submit a substantially complete 
268.26 	application after receiving notice from the commissioner is a basis for license denial under 
268.27 	section 245A.05.
268.28 	(b) An application for licensure must identify all controlling individuals as defined in 
268.29 	section 245A.02, subdivision 5a, and must designate one individual to be the authorized 
268.30 	agent. The application must be signed by the authorized agent and must include the authorized 
268.31 	agent's first, middle, and last name; mailing address; and email address. By submitting an 
268.32 	application for licensure, the authorized agent consents to electronic communication with 
268.33 	the commissioner throughout the application process. The authorized agent must be 
268.34 	authorized to accept service on behalf of all of the controlling individuals. A government 
269.1 	entity that holds multiple licenses under this chapter may designate one authorized agent 
269.2 	for all licenses issued under this chapter or may designate a different authorized agent for 
269.3 	each license. Service on the authorized agent is service on all of the controlling individuals. 
269.4 	It is not a defense to any action arising under this chapter that service was not made on each 
269.5 	controlling individual. The designation of a controlling individual as the authorized agent 
269.6 	under this paragraph does not affect the legal responsibility of any other controlling individual 
269.7 	under this chapter.
269.8 	(c) An applicant or license holder must have a policy that prohibits license holders, 
269.9 	employees, subcontractors, and volunteers, when directly responsible for persons served 
269.10 	by the program, from abusing prescription medication or being in any manner under the 
269.11 	influence of a chemical that impairs the individual's ability to provide services or care. The 
269.12 	license holder must train employees, subcontractors, and volunteers about the program's 
269.13 	drug and alcohol policy.
269.14 	(d) An applicant and license holder must have a program grievance procedure that permits 
269.15 	persons served by the program and their authorized representatives to bring a grievance to 
269.16 	the highest level of authority in the program.
269.17 	(e) The commissioner may limit communication during the application process to the 
269.18 	authorized agent or the controlling individuals identified on the license application and for 
269.19 	whom a background study was initiated under chapter 245C. Upon implementation of the 
269.20 	provider licensing and reporting hub, applicants and license holders must use the hub in the 
269.21 	manner prescribed by the commissioner. The commissioner may require the applicant, 
269.22 	except for child foster care, to demonstrate competence in the applicable licensing 
269.23 	requirements by successfully completing a written examination. The commissioner may 
269.24 	develop a prescribed written examination format.
269.25 	(f) When an applicant is an individual, the applicant must provide:
269.26 	(1) the applicant's taxpayer identification numbers including the Social Security number 
269.27 	or Minnesota tax identification number, and federal employer identification number if the 
269.28 	applicant has employees;
269.29 	(2) at the request of the commissioner, a copy of the most recent filing with the secretary 
269.30 	of state that includes the complete business name, if any;
269.31 	(3) if doing business under a different name, the doing business as (DBA) name, as 
269.32 	registered with the secretary of state;
270.1 	(4) if applicable, the applicant's National Provider Identifier (NPI) number and Unique 
270.2 	Minnesota Provider Identifier (UMPI) number; and
270.3 	(5) at the request of the commissioner, the notarized signature of the applicant or 
270.4 	authorized agent.
270.5 	(g) When an applicant is an organization, the applicant must provide:
270.6 	(1) the applicant's taxpayer identification numbers including the Minnesota tax 
270.7 	identification number and federal employer identification number;
270.8 	(2) at the request of the commissioner, a copy of the most recent filing with the secretary 
270.9 	of state that includes the complete business name, and if doing business under a different 
270.10 	name, the doing business as (DBA) name, as registered with the secretary of state;
270.11 	(3) the first, middle, and last name, and address for all individuals who will be controlling 
270.12 	individuals, including all officers, owners, and managerial officials as defined in section 
270.13 	245A.02, subdivision 5a, and the date that the background study was initiated by the applicant 
270.14 	for each controlling individual;
270.15 	(4) if applicable, the applicant's NPI number and UMPI number;
270.16 	(5) the documents that created the organization and that determine the organization's 
270.17 	internal governance and the relations among the persons that own the organization, have 
270.18 	an interest in the organization, or are members of the organization, in each case as provided 
270.19 	or authorized by the organization's governing statute, which may include a partnership 
270.20 	agreement, bylaws, articles of organization, organizational chart, and operating agreement, 
270.21 	or comparable documents as provided in the organization's governing statute; and
270.22 	(6) the notarized signature of the applicant or authorized agent.
270.23 	(h) When the applicant is a government entity, the applicant must provide:
270.24 	(1) the name of the government agency, political subdivision, or other unit of government 
270.25 	seeking the license and the name of the program or services that will be licensed;
270.26 	(2) the applicant's taxpayer identification numbers including the Minnesota tax 
270.27 	identification number and federal employer identification number;
270.28 	(3) a letter signed by the manager, administrator, or other executive of the government 
270.29 	entity authorizing the submission of the license application; and
270.30 	(4) if applicable, the applicant's NPI number and UMPI number.
271.1 	(i) At the time of application for licensure or renewal of a license under this chapter, the 
271.2 	applicant or license holder must acknowledge on the form provided by the commissioner 
271.3 	if the applicant or license holder elects to receive any public funding reimbursement from 
271.4 	the commissioner for services provided under the license that:
271.5 	(1) the applicant's or license holder's compliance with the provider enrollment agreement 
271.6 	or registration requirements for receipt of public funding may be monitored by the 
271.7 	commissioner as part of a licensing investigation or licensing inspection; and
271.8 	(2) noncompliance with the provider enrollment agreement or registration requirements 
271.9 	for receipt of public funding that is identified through a licensing investigation or licensing 
271.10 	inspection, or noncompliance with a licensing requirement that is a basis of enrollment for 
271.11 	reimbursement for a service, may result in:
271.12 	(i) a correction order or a conditional license under section 245A.06, or sanctions under 
271.13 	section 245A.07;
271.14 	(ii) nonpayment of claims submitted by the license holder for public program 
271.15 	reimbursement;
271.16 	(iii) recovery of payments made for the service;
271.17 	(iv) disenrollment in the public payment program; or
271.18 	(v) other administrative, civil, or criminal penalties as provided by law.

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

271.20 	Sec. 14. Minnesota Statutes 2022, section 245A.04, subdivision 7, is amended to read:
271.21 		Subd. 7.Grant of license; license extension. (a) If the commissioner determines that 
271.22 	the program complies with all applicable rules and laws, the commissioner shall issue a 
271.23 	license consistent with this section or, if applicable, a temporary change of ownership license 
271.24 	under section 245A.043. At minimum, the license shall state:
271.25 	(1) the name of the license holder;
271.26 	(2) the address of the program;
271.27 	(3) the effective date and expiration date of the license;
271.28 	(4) the type of license;
271.29 	(5) the maximum number and ages of persons that may receive services from the program; 
271.30 	and
272.1 	(6) any special conditions of licensure.
272.2 	(b) The commissioner may issue a license for a period not to exceed two years if:
272.3 	(1) the commissioner is unable to conduct the evaluation or observation required by 
272.4 	subdivision 4, paragraph (a), clause (4), because the program is not yet operational;
272.5 	(2) certain records and documents are not available because persons are not yet receiving 
272.6 	services from the program; and
272.7 	(3) the applicant complies with applicable laws and rules in all other respects.
272.8 	(c) A decision by the commissioner to issue a license does not guarantee that any person 
272.9 	or persons will be placed or cared for in the licensed program.
272.10 	(d) Except as provided in paragraphs (f) and (g) (i) and (j), the commissioner shall not 
272.11 	issue or reissue a license if the applicant, license holder, or an affiliated controlling individual 
272.12 	has:
272.13 	(1) been disqualified and the disqualification was not set aside and no variance has been 
272.14 	granted;
272.15 	(2) been denied a license under this chapter, within the past two years;
272.16 	(3) had a license issued under this chapter revoked within the past five years; or
272.17 	(4) an outstanding debt related to a license fee, licensing fine, or settlement agreement 
272.18 	for which payment is delinquent; or
272.19 	(5) (4) failed to submit the information required of an applicant under subdivision 1, 
272.20 	paragraph (f) or (g), after being requested by the commissioner.
272.21 	When a license issued under this chapter is revoked under clause (1) or (3), the license 
272.22 	holder and each affiliated controlling individual with a revoked license may not hold any 
272.23 	license under chapter 245A for five years following the revocation, and other licenses held 
272.24 	by the applicant, or license holder, or licenses affiliated with each controlling individual 
272.25 	shall also be revoked.
272.26 	(e) Notwithstanding paragraph (d), the commissioner may elect not to revoke a license 
272.27 	affiliated with a license holder or controlling individual that had a license revoked within 
272.28 	the past five years if the commissioner determines that (1) the license holder or controlling 
272.29 	individual is operating the program in substantial compliance with applicable laws and rules, 
272.30 	and (2) the program's continued operation is in the best interests of the community being 
272.31 	served.
273.1 	(f) Notwithstanding paragraph (d), the commissioner may issue a new license in response 
273.2 	to an application that is affiliated with an applicant, license holder, or controlling individual 
273.3 	that had an application denied within the past two years or a license revoked within the past 
273.4 	five years if the commissioner determines that (1) the applicant or controlling individual 
273.5 	has operated one or more programs in substantial compliance with applicable laws and 
273.6 	rules, and (2) the program's operation would be in the best interests of the community to be 
273.7 	served.
273.8 	(g) In determining whether a program's operation would be in the best interests of the 
273.9 	community to be served, the commissioner shall consider factors such as the number of 
273.10 	persons served, the availability of alternative services available in the surrounding 
273.11 	community, the management structure of the program, whether the program provides 
273.12 	culturally specific services, and other relevant factors.
273.13 	(e) (h) The commissioner shall not issue or reissue a license under this chapter if an 
273.14 	individual living in the household where the services will be provided as specified under 
273.15 	section 245C.03, subdivision 1, has been disqualified and the disqualification has not been 
273.16 	set aside and no variance has been granted.
273.17 	(f) (i) Pursuant to section 245A.07, subdivision 1, paragraph (b), when a license issued 
273.18 	under this chapter has been suspended or revoked and the suspension or revocation is under 
273.19 	appeal, the program may continue to operate pending a final order from the commissioner. 
273.20 	If the license under suspension or revocation will expire before a final order is issued, a 
273.21 	temporary provisional license may be issued provided any applicable license fee is paid 
273.22 	before the temporary provisional license is issued.
273.23 	(g) (j) Notwithstanding paragraph (f) (i), when a revocation is based on the 
273.24 	disqualification of a controlling individual or license holder, and the controlling individual 
273.25 	or license holder is ordered under section 245C.17 to be immediately removed from direct 
273.26 	contact with persons receiving services or is ordered to be under continuous, direct 
273.27 	supervision when providing direct contact services, the program may continue to operate 
273.28 	only if the program complies with the order and submits documentation demonstrating 
273.29 	compliance with the order. If the disqualified individual fails to submit a timely request for 
273.30 	reconsideration, or if the disqualification is not set aside and no variance is granted, the 
273.31 	order to immediately remove the individual from direct contact or to be under continuous, 
273.32 	direct supervision remains in effect pending the outcome of a hearing and final order from 
273.33 	the commissioner.
274.1 	(h) (k) For purposes of reimbursement for meals only, under the Child and Adult Care 
274.2 	Food Program, Code of Federal Regulations, title 7, subtitle B, chapter II, subchapter A, 
274.3 	part 226, relocation within the same county by a licensed family day care provider, shall 
274.4 	be considered an extension of the license for a period of no more than 30 calendar days or 
274.5 	until the new license is issued, whichever occurs first, provided the county agency has 
274.6 	determined the family day care provider meets licensure requirements at the new location.
274.7 	(i) (l) Unless otherwise specified by statute, all licenses issued under this chapter expire 
274.8 	at 12:01 a.m. on the day after the expiration date stated on the license. A license holder must 
274.9 	apply for and be granted a new license to operate the program or the program must not be 
274.10 	operated after the expiration date.
274.11 	(j) (m) The commissioner shall not issue or reissue a license under this chapter if it has 
274.12 	been determined that a tribal licensing authority has established jurisdiction to license the 
274.13 	program or service.

274.14 	Sec. 15. Minnesota Statutes 2022, section 245A.04, subdivision 7a, is amended to read:
274.15 		Subd. 7a.Notification required. (a) A license holder must notify the commissioner, in 
274.16 	a manner prescribed by the commissioner, and obtain the commissioner's approval before 
274.17 	making any change that would alter the license information listed under subdivision 7, 
274.18 	paragraph (a).
274.19 	(b) A license holder must also notify the commissioner, in a manner prescribed by the 
274.20 	commissioner, before making any change:
274.21 	(1) to the license holder's authorized agent as defined in section 245A.02, subdivision 
274.22 	3b;
274.23 	(2) to the license holder's controlling individual as defined in section 245A.02, subdivision 
274.24 	5a;
274.25 	(3) to the license holder information on file with the secretary of state;
274.26 	(4) in the location of the program or service licensed under this chapter; and
274.27 	(5) to the federal or state tax identification number associated with the license holder.
274.28 	(c) When, for reasons beyond the license holder's control, a license holder cannot provide 
274.29 	the commissioner with prior notice of the changes in paragraph (b), clauses (1) to (3), the 
274.30 	license holder must notify the commissioner by the tenth business day after the change and 
274.31 	must provide any additional information requested by the commissioner.
275.1 	(d) When a license holder notifies the commissioner of a change to the license holder 
275.2 	information on file with the secretary of state, the license holder must provide amended 
275.3 	articles of incorporation and other documentation of the change.
275.4 	(e) Upon implementation of the provider licensing and reporting hub, license holders 
275.5 	must enter and update information in the hub in a manner prescribed by the commissioner.

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

275.7 	Sec. 16. Minnesota Statutes 2022, section 245A.05, is amended to read:
275.8 	245A.05 DENIAL OF APPLICATION.
275.9 	(a) The commissioner may deny a license if an applicant or controlling individual:
275.10 	(1) fails to submit a substantially complete application after receiving notice from the 
275.11 	commissioner under section 245A.04, subdivision 1;
275.12 	(2) fails to comply with applicable laws or rules;
275.13 	(3) knowingly withholds relevant information from or gives false or misleading 
275.14 	information to the commissioner in connection with an application for a license or during 
275.15 	an investigation;
275.16 	(4) has a disqualification that has not been set aside under section 245C.22 and no 
275.17 	variance has been granted;
275.18 	(5) has an individual living in the household who received a background study under 
275.19 	section 245C.03, subdivision 1, paragraph (a), clause (2), who has a disqualification that 
275.20 	has not been set aside under section 245C.22, and no variance has been granted;
275.21 	(6) is associated with an individual who received a background study under section 
275.22 	245C.03, subdivision 1, paragraph (a), clause (6), who may have unsupervised access to 
275.23 	children or vulnerable adults, and who has a disqualification that has not been set aside 
275.24 	under section 245C.22, and no variance has been granted;
275.25 	(7) fails to comply with section 245A.04, subdivision 1, paragraph (f) or (g);
275.26 	(8) fails to demonstrate competent knowledge as required by section 245A.04, subdivision 
275.27 	6;
275.28 	(9) has a history of noncompliance as a license holder or controlling individual with 
275.29 	applicable laws or rules, including but not limited to this chapter and chapters 119B and 
275.30 	245C;
275.31 	(10) is prohibited from holding a license according to section 245.095; or
276.1 	(11) for a family foster setting, has nondisqualifying background study information, as 
276.2 	described in section 245C.05, subdivision 4, that reflects on the individual's ability to safely 
276.3 	provide care to foster children.
276.4 	(b) An applicant whose application has been denied by the commissioner must be given 
276.5 	notice of the denial, which must state the reasons for the denial in plain language. Notice 
276.6 	must be given by certified mail or, by personal service, or through the provider licensing 
276.7 	and reporting hub. The notice must state the reasons the application was denied and must 
276.8 	inform the applicant of the right to a contested case hearing under chapter 14 and Minnesota 
276.9 	Rules, parts 1400.8505 to 1400.8612. When an order is issued through the hub, the applicant 
276.10 	or license holder is deemed to have received the order upon the date of issuance through 
276.11 	the hub. The applicant may appeal the denial by notifying the commissioner in writing by 
276.12 	certified mail or, by personal service, or through the provider licensing and reporting hub. 
276.13 	If mailed, the appeal must be postmarked and sent to the commissioner within 20 calendar 
276.14 	days after the applicant received the notice of denial. If an appeal request is made by personal 
276.15 	service or through the hub, it must be received by the commissioner within 20 calendar days 
276.16 	after the applicant received the notice of denial. Section 245A.08 applies to hearings held 
276.17 	to appeal the commissioner's denial of an application.

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

276.19 	Sec. 17. Minnesota Statutes 2022, section 245A.055, subdivision 2, is amended to read:
276.20 		Subd. 2.Reconsideration of closure. If a license is closed, the commissioner must 
276.21 	notify the license holder of closure by certified mail or, by personal service, or through the 
276.22 	provider licensing and reporting hub. If mailed, the notice of closure must be mailed to the 
276.23 	last known address of the license holder and must inform the license holder why the license 
276.24 	was closed and that the license holder has the right to request reconsideration of the closure. 
276.25 	If the license holder believes that the license was closed in error, the license holder may ask 
276.26 	the commissioner to reconsider the closure. The license holder's request for reconsideration 
276.27 	must be made in writing and must include documentation that the licensed program has 
276.28 	served a client in the previous 12 months. The request for reconsideration must be postmarked 
276.29 	and sent to the commissioner or submitted through the provider licensing and reporting hub 
276.30 	within 20 calendar days after the license holder receives the notice of closure. Upon 
276.31 	implementation of the provider licensing and reporting hub, the provider must use the hub 
276.32 	to request reconsideration. If the order is issued through the provider hub, the reconsideration 
276.33 	must be received by the commissioner within 20 calendar days from the date the 
276.34 	commissioner issued the order through the hub. A timely request for reconsideration stays 
277.1 	imposition of the license closure until the commissioner issues a decision on the request for 
277.2 	reconsideration.

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

277.4 	Sec. 18. Minnesota Statutes 2022, section 245A.06, subdivision 1, is amended to read:
277.5 		Subdivision 1.Contents of correction orders and conditional licenses. (a) If the 
277.6 	commissioner finds that the applicant or license holder has failed to comply with an 
277.7 	applicable law or rule and this failure does not imminently endanger the health, safety, or 
277.8 	rights of the persons served by the program, the commissioner may issue a correction order 
277.9 	and an order of conditional license to the applicant or license holder. When issuing a 
277.10 	conditional license, the commissioner shall consider the nature, chronicity, or severity of 
277.11 	the violation of law or rule and the effect of the violation on the health, safety, or rights of 
277.12 	persons served by the program. The correction order or conditional license must state the 
277.13 	following in plain language:
277.14 	(1) the conditions that constitute a violation of the law or rule;
277.15 	(2) the specific law or rule violated;
277.16 	(3) the time allowed to correct each violation; and
277.17 	(4) if a license is made conditional, the length and terms of the conditional license, and 
277.18 	the reasons for making the license conditional.
277.19 	(b) Nothing in this section prohibits the commissioner from proposing a sanction as 
277.20 	specified in section 245A.07, prior to issuing a correction order or conditional license.
277.21 	(c) The commissioner may issue a correction order and an order of conditional license 
277.22 	to the applicant or license holder through the provider licensing and reporting hub. When 
277.23 	an order is issued through the hub, the applicant or license holder is deemed to have received 
277.24 	the order upon the date of issuance through the hub.

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

277.26 	Sec. 19. Minnesota Statutes 2022, section 245A.06, subdivision 2, is amended to read:
277.27 		Subd. 2.Reconsideration of correction orders. (a) If the applicant or license holder 
277.28 	believes that the contents of the commissioner's correction order are in error, the applicant 
277.29 	or license holder may ask the Department of Human Services to reconsider the parts of the 
277.30 	correction order that are alleged to be in error. The request for reconsideration must be made 
277.31 	in writing and must be postmarked and sent to the commissioner or submitted in the provider 
278.1 	licensing and reporting hub within 20 calendar days after receipt of the correction order by 
278.2 	the applicant or license holder, and:
278.3 	(1) specify the parts of the correction order that are alleged to be in error;
278.4 	(2) explain why they are in error; and
278.5 	(3) include documentation to support the allegation of error.
278.6 	Upon implementation of the provider licensing and reporting hub, the provider must use 
278.7 	the hub to request reconsideration. A request for reconsideration does not stay any provisions 
278.8 	or requirements of the correction order. The commissioner's disposition of a request for 
278.9 	reconsideration is final and not subject to appeal under chapter 14.
278.10 	(b) This paragraph applies only to licensed family child care providers. A licensed family 
278.11 	child care provider who requests reconsideration of a correction order under paragraph (a) 
278.12 	may also request, on a form and in the manner prescribed by the commissioner, that the 
278.13 	commissioner expedite the review if:
278.14 	(1) the provider is challenging a violation and provides a description of how complying 
278.15 	with the corrective action for that violation would require the substantial expenditure of 
278.16 	funds or a significant change to their program; and
278.17 	(2) describes what actions the provider will take in lieu of the corrective action ordered 
278.18 	to ensure the health and safety of children in care pending the commissioner's review of the 
278.19 	correction order.

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

278.21 	Sec. 20. Minnesota Statutes 2022, section 245A.06, subdivision 4, is amended to read:
278.22 		Subd. 4.Notice of conditional license; reconsideration of conditional license. (a) If 
278.23 	a license is made conditional, the license holder must be notified of the order by certified 
278.24 	mail or, by personal service, or through the provider licensing and reporting hub. If mailed, 
278.25 	the notice must be mailed to the address shown on the application or the last known address 
278.26 	of the license holder. The notice must state the reasons the conditional license was ordered 
278.27 	and must inform the license holder of the right to request reconsideration of the conditional 
278.28 	license by the commissioner. The license holder may request reconsideration of the order 
278.29 	of conditional license by notifying the commissioner by certified mail or, by personal service, 
278.30 	or through the provider licensing and reporting hub. The request must be made in writing. 
278.31 	If sent by certified mail, the request must be postmarked and sent to the commissioner within 
278.32 	ten calendar days after the license holder received the order. If a request is made by personal 
279.1 	service or through the hub, it must be received by the commissioner within ten calendar 
279.2 	days after the license holder received the order. The license holder may submit with the 
279.3 	request for reconsideration written argument or evidence in support of the request for 
279.4 	reconsideration. A timely request for reconsideration shall stay imposition of the terms of 
279.5 	the conditional license until the commissioner issues a decision on the request for 
279.6 	reconsideration. If the commissioner issues a dual order of conditional license under this 
279.7 	section and an order to pay a fine under section 245A.07, subdivision 3, the license holder 
279.8 	has a right to a contested case hearing under chapter 14 and Minnesota Rules, parts 1400.8505
279.9 	to 1400.8612. The scope of the contested case hearing shall include the fine and the 
279.10 	conditional license. In this case, a reconsideration of the conditional license will not be 
279.11 	conducted under this section. If the license holder does not appeal the fine, the license holder 
279.12 	does not have a right to a contested case hearing and a reconsideration of the conditional 
279.13 	license must be conducted under this subdivision.
279.14 	(b) The commissioner's disposition of a request for reconsideration is final and not 
279.15 	subject to appeal under chapter 14.

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

279.17 	Sec. 21. Minnesota Statutes 2022, section 245A.07, is amended by adding a subdivision 
279.18 	to read:
279.19 		Subd. 2b.Immediate suspension of residential programs. For suspensions issued to 
279.20 	a licensed residential program as defined in section 245A.02, subdivision 14, the effective 
279.21 	date of the order may be delayed for up to 30 calendar days to provide for the continuity of 
279.22 	care of service recipients. The license holder must cooperate with the commissioner to 
279.23 	ensure service recipients receive continued care during the period of the delay and to facilitate 
279.24 	the transition of service recipients to new providers. In these cases, the suspension order 
279.25 	takes effect when all service recipients have been transitioned to a new provider or 30 days 
279.26 	after the suspension order was issued, whichever comes first.

279.27 	Sec. 22. Minnesota Statutes 2022, section 245A.07, is amended by adding a subdivision 
279.28 	to read:
279.29 		Subd. 2c.Immediate suspension for programs with multiple licensed service sites. (a) 
279.30 	For license holders that operate more than one service site under a single license, the 
279.31 	suspension order must be specific to the service site or sites where the commissioner 
279.32 	determines an order is required under subdivision 2. The order must not apply to other 
280.1 	service sites operated by the same license holder unless the commissioner has included in 
280.2 	the order an articulable basis for applying the order to other service sites.
280.3 	(b) If the commissioner has issued more than one license to the license holder under this 
280.4 	chapter, the suspension imposed under this section must be specific to the license for the 
280.5 	program at which the commissioner determines an order is required under subdivision 2. 
280.6 	The order must not apply to other licenses held by the same license holder if those programs 
280.7 	are being operated in substantial compliance with applicable law and rules.

280.8 	Sec. 23. Minnesota Statutes 2022, section 245A.07, subdivision 3, is amended to read:
280.9 		Subd. 3.License suspension, revocation, or fine. (a) The commissioner may suspend 
280.10 	or revoke a license, or impose a fine if:
280.11 	(1) a license holder fails to comply fully with applicable laws or rules including but not 
280.12 	limited to the requirements of this chapter and chapter 245C;
280.13 	(2) a license holder, a controlling individual, or an individual living in the household 
280.14 	where the licensed services are provided or is otherwise subject to a background study has 
280.15 	been disqualified and the disqualification was not set aside and no variance has been granted;
280.16 	(3) a license holder knowingly withholds relevant information from or gives false or 
280.17 	misleading information to the commissioner in connection with an application for a license, 
280.18 	in connection with the background study status of an individual, during an investigation, 
280.19 	or regarding compliance with applicable laws or rules;
280.20 	(4) a license holder is excluded from any program administered by the commissioner 
280.21 	under section 245.095; or
280.22 	(5) revocation is required under section 245A.04, subdivision 7, paragraph (d).
280.23 	A license holder who has had a license issued under this chapter suspended, revoked, 
280.24 	or has been ordered to pay a fine must be given notice of the action by certified mail or, by
280.25 	personal service, or through the provider licensing and reporting hub. If mailed, the notice 
280.26 	must be mailed to the address shown on the application or the last known address of the 
280.27 	license holder. The notice must state in plain language the reasons the license was suspended 
280.28 	or revoked, or a fine was ordered. When an order is issued through the hub, the applicant 
280.29 	or license holder is deemed to have received the order upon the date of issuance through 
280.30 	the hub.
280.31 	(b) If the license was suspended or revoked, the notice must inform the license holder 
280.32 	of the right to a contested case hearing under chapter 14 and Minnesota Rules, parts 
281.1 	1400.8505 to 1400.8612. The license holder may appeal an order suspending or revoking 
281.2 	a license. The appeal of an order suspending or revoking a license must be made in writing 
281.3 	by certified mail or, by personal service, or through the provider licensing and reporting 
281.4 	hub. If mailed, the appeal must be postmarked and sent to the commissioner within ten 
281.5 	calendar days after the license holder receives notice that the license has been suspended 
281.6 	or revoked. If a request is made by personal service or through the hub, it must be received 
281.7 	by the commissioner within ten calendar days after the license holder received the order. 
281.8 	Except as provided in subdivision 2a, paragraph (c), if a license holder submits a timely 
281.9 	appeal of an order suspending or revoking a license, the license holder may continue to 
281.10 	operate the program as provided in section 245A.04, subdivision 7, paragraphs (f) and (g), 
281.11 	until the commissioner issues a final order on the suspension or revocation.
281.12 	(c)(1) If the license holder was ordered to pay a fine, the notice must inform the license 
281.13 	holder of the responsibility for payment of fines and the right to a contested case hearing 
281.14 	under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The appeal of an 
281.15 	order to pay a fine must be made in writing by certified mail or, by personal service, or 
281.16 	through the provider licensing and reporting hub. If mailed, the appeal must be postmarked 
281.17 	and sent to the commissioner within ten calendar days after the license holder receives 
281.18 	notice that the fine has been ordered. If a request is made by personal service or through 
281.19 	the hub, it must be received by the commissioner within ten calendar days after the license 
281.20 	holder received the order.
281.21 	(2) The license holder shall pay the fines assessed on or before the payment date specified. 
281.22 	If the license holder fails to fully comply with the order, the commissioner may issue a 
281.23 	second fine or suspend the license until the license holder complies. If the license holder 
281.24 	receives state funds, the state, county, or municipal agencies or departments responsible for 
281.25 	administering the funds shall withhold payments and recover any payments made while the 
281.26 	license is suspended for failure to pay a fine. A timely appeal shall stay payment of the fine 
281.27 	until the commissioner issues a final order.
281.28 	(3) A license holder shall promptly notify the commissioner of human services, in writing, 
281.29 	when a violation specified in the order to forfeit a fine is corrected. If upon reinspection the 
281.30 	commissioner determines that a violation has not been corrected as indicated by the order 
281.31 	to forfeit a fine, the commissioner may issue a second fine. The commissioner shall notify 
281.32 	the license holder by certified mail or, by personal service, or through the provider licensing 
281.33 	and reporting hub that a second fine has been assessed. The license holder may appeal the 
281.34 	second fine as provided under this subdivision.
281.35 	(4) Fines shall be assessed as follows:
282.1 	(i) the license holder shall forfeit $1,000 for each determination of maltreatment of a 
282.2 	child under chapter 260E or the maltreatment of a vulnerable adult under section 626.557 
282.3 	for which the license holder is determined responsible for the maltreatment under section 
282.4 	260E.30, subdivision 4, paragraphs (a) and (b), or 626.557, subdivision 9c, paragraph (c);
282.5 	(ii) if the commissioner determines that a determination of maltreatment for which the 
282.6 	license holder is responsible is the result of maltreatment that meets the definition of serious 
282.7 	maltreatment as defined in section 245C.02, subdivision 18, the license holder shall forfeit 
282.8 	$5,000;
282.9 	(iii) for a program that operates out of the license holder's home and a program licensed 
282.10 	under Minnesota Rules, parts 9502.0300 to 9502.0445, the fine assessed against the license 
282.11 	holder shall not exceed $1,000 for each determination of maltreatment;
282.12 	(iv) the license holder shall forfeit $200 for each occurrence of a violation of law or rule 
282.13 	governing matters of health, safety, or supervision, including but not limited to the provision 
282.14 	of adequate staff-to-child or adult ratios, and failure to comply with background study 
282.15 	requirements under chapter 245C; and
282.16 	(v) the license holder shall forfeit $100 for each occurrence of a violation of law or rule 
282.17 	other than those subject to a $5,000, $1,000, or $200 fine in items (i) to (iv).
282.18 	For purposes of this section, "occurrence" means each violation identified in the 
282.19 	commissioner's fine order. Fines assessed against a license holder that holds a license to 
282.20 	provide home and community-based services, as identified in section 245D.03, subdivision 
282.21 	1, and a community residential setting or day services facility license under chapter 245D 
282.22 	where the services are provided, may be assessed against both licenses for the same 
282.23 	occurrence, but the combined amount of the fines shall not exceed the amount specified in 
282.24 	this clause for that occurrence.
282.25 	(5) When a fine has been assessed, the license holder may not avoid payment by closing, 
282.26 	selling, or otherwise transferring the licensed program to a third party. In such an event, the 
282.27 	license holder will be personally liable for payment. In the case of a corporation, each 
282.28 	controlling individual is personally and jointly liable for payment.
282.29 	(d) Except for background study violations involving the failure to comply with an order 
282.30 	to immediately remove an individual or an order to provide continuous, direct supervision, 
282.31 	the commissioner shall not issue a fine under paragraph (c) relating to a background study 
282.32 	violation to a license holder who self-corrects a background study violation before the 
282.33 	commissioner discovers the violation. A license holder who has previously exercised the 
282.34 	provisions of this paragraph to avoid a fine for a background study violation may not avoid 
283.1 	a fine for a subsequent background study violation unless at least 365 days have passed 
283.2 	since the license holder self-corrected the earlier background study violation.

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

283.4 	Sec. 24. Minnesota Statutes 2022, section 245A.10, subdivision 6, is amended to read:
283.5 		Subd. 6.License not issued until license or certification fee is paid. The commissioner 
283.6 	shall not issue or reissue a license or certification until the license or certification fee is paid. 
283.7 	The commissioner shall send a bill for the license or certification fee to the billing address 
283.8 	identified by the license holder. If the license holder does not submit the license or 
283.9 	certification fee payment by the due date, the commissioner shall send the license holder a 
283.10 	past due notice. If the license holder fails to pay the license or certification fee by the due 
283.11 	date on the past due notice, the commissioner shall send a final notice to the license holder 
283.12 	informing the license holder that the program license will expire on December 31 unless 
283.13 	the license fee is paid before December 31. If a license expires, the program is no longer 
283.14 	licensed and, unless exempt from licensure under section 245A.03, subdivision 2, must not 
283.15 	operate after the expiration date. After a license expires, if the former license holder wishes 
283.16 	to provide licensed services, the former license holder must submit a new license application 
283.17 	and application fee under subdivision 3.

283.18 	Sec. 25. Minnesota Statutes 2022, section 245A.10, is amended by adding a subdivision 
283.19 	to read:
283.20 		Subd. 9.License not reissued until outstanding debt is paid. The commissioner shall 
283.21 	not reissue a license or certification until the license holder has paid all outstanding debts 
283.22 	related to a licensing fine or settlement agreement for which payment is delinquent. If the 
283.23 	payment is past due, the commissioner shall send a past due notice informing the license 
283.24 	holder that the program license will expire on December 31 unless the outstanding debt is 
283.25 	paid before December 31. If a license expires, the program is no longer licensed and must 
283.26 	not operate after the expiration date. After a license expires, if the former license holder 
283.27 	wishes to provide licensed services, the former license holder must submit a new license 
283.28 	application and application fee under subdivision 3.

284.1 	Sec. 26. Minnesota Statutes 2022, section 245A.16, is amended by adding a subdivision 
284.2 	to read:
284.3 		Subd. 10.Licensing and reporting hub. Upon implementation of the provider licensing 
284.4 	and reporting hub, county staff who perform licensing functions must use the hub in the 
284.5 	manner prescribed by the commissioner.

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

284.7 	Sec. 27. Minnesota Statutes 2022, section 245A.50, subdivision 3, is amended to read:
284.8 		Subd. 3.First aid. (a) Before initial licensure and before caring for a child, license 
284.9 	holders, second adult caregivers, and substitutes must be trained in pediatric first aid. The 
284.10 	first aid training must have been provided by an individual approved to provide first aid 
284.11 	instruction. First aid training may be less than eight hours and persons qualified to provide 
284.12 	first aid training include individuals approved as first aid instructors. License holders, second 
284.13 	adult caregivers, and substitutes must repeat pediatric first aid training every two years. 
284.14 	When the training expires, it must be retaken no later than the day before the anniversary 
284.15 	of the license holder's license effective date. License holders, second adult caregivers, and 
284.16 	substitutes must not let the training expire.
284.17 	(b) Video training reviewed and approved by the county licensing agency satisfies the 
284.18 	training requirement of this subdivision.

284.19 	Sec. 28. Minnesota Statutes 2022, section 245A.50, subdivision 4, is amended to read:
284.20 		Subd. 4.Cardiopulmonary resuscitation. (a) Before initial licensure and before caring 
284.21 	for a child, license holders, second adult caregivers, and substitutes must be trained in 
284.22 	pediatric cardiopulmonary resuscitation (CPR), including CPR techniques for infants and 
284.23 	children, and in the treatment of obstructed airways. The CPR training must have been 
284.24 	provided by an individual approved to provide CPR instruction. License holders, second 
284.25 	adult caregivers, and substitutes must repeat pediatric CPR training at least once every two 
284.26 	years and must document the training in the license holder's records. When the training 
284.27 	expires, it must be retaken no later than the day before the anniversary of the license holder's 
284.28 	license effective date. License holders, second adult caregivers, and substitutes must not let 
284.29 	the training expire.
284.30 	(b) Persons providing CPR training must use CPR training that has been developed:
284.31 	(1) by the American Heart Association or the American Red Cross and incorporates 
284.32 	psychomotor skills to support the instruction; or
285.1 	(2) using nationally recognized, evidence-based guidelines for CPR training and 
285.2 	incorporates psychomotor skills to support the instruction.

285.3 	Sec. 29. Minnesota Statutes 2022, section 245A.50, subdivision 5, is amended to read:
285.4 		Subd. 5.Sudden unexpected infant death and abusive head trauma training. (a) 
285.5 	License holders must ensure and document that before the license holder, second adult 
285.6 	caregivers, substitutes, and helpers assist in the care of infants, they are instructed on the 
285.7 	standards in section 245A.1435 and receive training on reducing the risk of sudden 
285.8 	unexpected infant death. In addition, license holders must ensure and document that before 
285.9 	the license holder, second adult caregivers, substitutes, and helpers assist in the care of 
285.10 	infants and children under school age, they receive training on reducing the risk of abusive 
285.11 	head trauma from shaking infants and young children. The training in this subdivision may 
285.12 	be provided as initial training under subdivision 1 or ongoing annual training under 
285.13 	subdivision 7.
285.14 	(b) Sudden unexpected infant death reduction training required under this subdivision 
285.15 	must, at a minimum, address the risk factors related to sudden unexpected infant death, 
285.16 	means of reducing the risk of sudden unexpected infant death in child care, and license 
285.17 	holder communication with parents regarding reducing the risk of sudden unexpected infant 
285.18 	death.
285.19 	(c) Abusive head trauma training required under this subdivision must, at a minimum, 
285.20 	address the risk factors related to shaking infants and young children, means of reducing 
285.21 	the risk of abusive head trauma in child care, and license holder communication with parents 
285.22 	regarding reducing the risk of abusive head trauma.
285.23 	(d) Training for family and group family child care providers must be developed by the 
285.24 	commissioner in conjunction with the Minnesota Sudden Infant Death Center and approved 
285.25 	by the Minnesota Center for Professional Development. Sudden unexpected infant death 
285.26 	reduction training and abusive head trauma training may be provided in a single course of 
285.27 	no more than two hours in length.
285.28 	(e) Sudden unexpected infant death reduction training and abusive head trauma training 
285.29 	required under this subdivision must be completed in person or as allowed under subdivision 
285.30 	10, clause (1) or (2), at least once every two years. When the training expires, it must be 
285.31 	retaken no later than the day before the anniversary of the license holder's license effective 
285.32 	date. On the years when the individual receiving training is not receiving training in person 
285.33 	or as allowed under subdivision 10, clause (1) or (2), the individual receiving training in 
285.34 	accordance with this subdivision must receive sudden unexpected infant death reduction 
286.1 	training and abusive head trauma training through a video of no more than one hour in 
286.2 	length. The video must be developed or approved by the commissioner.
286.3 	(f) An individual who is related to the license holder as defined in section 245A.02, 
286.4 	subdivision 13, and who is involved only in the care of the license holder's own infant or 
286.5 	child under school age and who is not designated to be a second adult caregiver, helper, or 
286.6 	substitute for the licensed program, is exempt from the sudden unexpected infant death and 
286.7 	abusive head trauma training.

286.8 	Sec. 30. Minnesota Statutes 2022, section 245A.50, subdivision 6, is amended to read:
286.9 		Subd. 6.Child passenger restraint systems; training requirement. (a) A license 
286.10 	holder must comply with all seat belt and child passenger restraint system requirements 
286.11 	under section 169.685.
286.12 	(b) Family and group family child care programs licensed by the Department of Human 
286.13 	Services that serve a child or children under eight years of age must document training that 
286.14 	fulfills the requirements in this subdivision.
286.15 	(1) Before a license holder, second adult caregiver, substitute, or helper transports a 
286.16 	child or children under age eight in a motor vehicle, the person placing the child or children 
286.17 	in a passenger restraint must satisfactorily complete training on the proper use and installation 
286.18 	of child restraint systems in motor vehicles. Training completed under this subdivision may 
286.19 	be used to meet initial training under subdivision 1 or ongoing training under subdivision 
286.20 	7.
286.21 	(2) Training required under this subdivision must be at least one hour in length, completed 
286.22 	at initial training, and repeated at least once every five years. When the training expires, it 
286.23 	must be retaken no later than the day before the anniversary of the license holder's license 
286.24 	effective date. At a minimum, the training must address the proper use of child restraint 
286.25 	systems based on the child's size, weight, and age, and the proper installation of a car seat 
286.26 	or booster seat in the motor vehicle used by the license holder to transport the child or 
286.27 	children.
286.28 	(3) Training under this subdivision must be provided by individuals who are certified 
286.29 	and approved by the Department of Public Safety, Office of Traffic Safety. License holders 
286.30 	may obtain a list of certified and approved trainers through the Department of Public Safety 
286.31 	website or by contacting the agency.
287.1 	(c) Child care providers that only transport school-age children as defined in section 
287.2 	245A.02, subdivision 19, paragraph (f), in child care buses as defined in section 169.448, 
287.3 	subdivision 1, paragraph (e), are exempt from this subdivision.

287.4 	Sec. 31. Minnesota Statutes 2022, section 245A.50, subdivision 9, is amended to read:
287.5 		Subd. 9.Supervising for safety; training requirement. (a) Courses required by this 
287.6 	subdivision must include the following health and safety topics:
287.7 	(1) preventing and controlling infectious diseases;
287.8 	(2) administering medication;
287.9 	(3) preventing and responding to allergies;
287.10 	(4) ensuring building and physical premises safety;
287.11 	(5) handling and storing biological contaminants;
287.12 	(6) preventing and reporting child abuse and maltreatment; and
287.13 	(7) emergency preparedness.
287.14 	(b) Before initial licensure and before caring for a child, all family child care license 
287.15 	holders and each second adult caregiver shall complete and document the completion of 
287.16 	the six-hour Supervising for Safety for Family Child Care course developed by the 
287.17 	commissioner.
287.18 	(c) The license holder must ensure and document that, before caring for a child, all 
287.19 	substitutes have completed the four-hour Basics of Licensed Family Child Care for 
287.20 	Substitutes course developed by the commissioner, which must include health and safety 
287.21 	topics as well as child development and learning.
287.22 	(d) The family child care license holder and each second adult caregiver shall complete 
287.23 	and document:
287.24 	(1) the annual completion of either:
287.25 	(i) a two-hour active supervision course developed by the commissioner; or
287.26 	(ii) any courses in the ensuring safety competency area under the health, safety, and 
287.27 	nutrition standard of the Knowledge and Competency Framework that the commissioner 
287.28 	has identified as an active supervision training course; and
287.29 	(2) the completion at least once every five years of the two-hour courses Health and 
287.30 	Safety I and Health and Safety II. When the training is due for the first time or expires, it 
288.1 	must be taken no later than the day before the anniversary of the license holder's license 
288.2 	effective date. A license holder's or second adult caregiver's completion of either training 
288.3 	in a given year meets the annual active supervision training requirement in clause (1).
288.4 	(e) At least once every three years, license holders must ensure and document that 
288.5 	substitutes have completed the four-hour Basics of Licensed Family Child Care for 
288.6 	Substitutes course. When the training expires, it must be retaken no later than the day before 
288.7 	the anniversary of the license holder's license effective date.

288.8 	Sec. 32. Minnesota Statutes 2022, section 245H.01, subdivision 3, is amended to read:
288.9 		Subd. 3.Center operator or program operator. "Center operator" or "program operator" 
288.10 	means the person exercising supervision or control over the center's or program's operations, 
288.11 	planning, and functioning. There may be more than one designated center operator or 
288.12 	program operator.

288.13 	Sec. 33. Minnesota Statutes 2022, section 245H.01, is amended by adding a subdivision 
288.14 	to read:
288.15 		Subd. 4a.Certification holder contact person. "Certification holder contact person" 
288.16 	means an individual designated by the organization who:
288.17 	(1) oversees all center operators for the organization;
288.18 	(2) acts as the authorized agent for background studies required in section 245H.10; and
288.19 	(3) is authorized to be the designated contact person for communicating with the 
288.20 	commissioner regarding all items pursuant to chapter 245H.

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

288.22 	Sec. 34. Minnesota Statutes 2022, section 245H.03, subdivision 2, is amended to read:
288.23 		Subd. 2.Application submission. The commissioner shall provide application 
288.24 	instructions and information about the rules and requirements of other state agencies that 
288.25 	affect the applicant. The certification application must be submitted in a manner prescribed 
288.26 	by the commissioner. Upon implementation of the provider licensing and reporting hub, 
288.27 	applicants must use the hub in the manner prescribed by the commissioner. The commissioner 
288.28 	shall act on the application within 90 working days of receiving a completed application.

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

289.1 	Sec. 35. Minnesota Statutes 2022, section 245H.03, subdivision 3, is amended to read:
289.2 		Subd. 3.Incomplete applications. When the commissioner receives an application for 
289.3 	initial certification that is incomplete because the applicant failed to submit required 
289.4 	documents or is deficient because the documents submitted do not meet certification 
289.5 	requirements, the commissioner shall provide the applicant written notice that the application 
289.6 	is incomplete or deficient. In the notice, the commissioner shall identify documents that are 
289.7 	missing or deficient and give the applicant 45 days to resubmit a second application that is 
289.8 	complete. An applicant's failure to submit a complete application after receiving notice from 
289.9 	the commissioner is basis for certification denial. For purposes of this section, when a denial 
289.10 	order is issued through the provider licensing and reporting hub, the applicant is deemed to 
289.11 	have received the order upon the date of issuance through the hub.

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

289.13 	Sec. 36. Minnesota Statutes 2022, section 245H.03, subdivision 4, is amended to read:
289.14 		Subd. 4.Reconsideration of certification denial. (a) The applicant may request 
289.15 	reconsideration of the denial by notifying the commissioner by certified mail or, by personal 
289.16 	service, or through the provider licensing and reporting hub. The request must be made in 
289.17 	writing. If sent by certified mail, the request must be postmarked and sent to the 
289.18 	commissioner within 20 calendar days after the applicant received the order. If a request is 
289.19 	made by personal service or through the hub, it must be received by the commissioner within 
289.20 	20 calendar days after the applicant received the order. The applicant may submit with the 
289.21 	request for reconsideration a written argument or evidence in support of the request for 
289.22 	reconsideration.
289.23 	(b) The commissioner's disposition of a request for reconsideration is final and not 
289.24 	subject to appeal under chapter 14.

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

289.26 	Sec. 37. Minnesota Statutes 2022, section 245H.06, subdivision 1, is amended to read:
289.27 		Subdivision 1.Correction order requirements. (a) If the applicant or certification 
289.28 	holder failed to comply with a law or rule, the commissioner may issue a correction order. 
289.29 	The correction order must state:
289.30 	(1) the condition that constitutes a violation of the law or rule;
289.31 	(2) the specific law or rule violated; and
290.1 	(3) the time allowed to correct each violation.
290.2 	(b) The commissioner may issue a correction order to the applicant or certification holder 
290.3 	through the provider licensing and reporting hub. When an order is issued through the hub, 
290.4 	the applicant or certification is deemed to have received the order upon the date of issuance 
290.5 	through the hub.

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

290.7 	Sec. 38. Minnesota Statutes 2022, section 245H.06, subdivision 2, is amended to read:
290.8 		Subd. 2.Reconsideration request. (a) If the applicant or certification holder believes 
290.9 	that the commissioner's correction order is erroneous, the applicant or certification holder 
290.10 	may ask the commissioner to reconsider the part of the correction order that is allegedly 
290.11 	erroneous. A request for reconsideration must be made in writing, and postmarked, or 
290.12 	submitted through the provider licensing and reporting hub, and sent to the commissioner 
290.13 	within 20 calendar days after the applicant or certification holder received the correction 
290.14 	order, and must:
290.15 	(1) specify the part of the correction order that is allegedly erroneous;
290.16 	(2) explain why the specified part is erroneous; and
290.17 	(3) include documentation to support the allegation of error.
290.18 	(b) A request for reconsideration does not stay any provision or requirement of the 
290.19 	correction order. The commissioner's disposition of a request for reconsideration is final 
290.20 	and not subject to appeal.
290.21 	(c) Upon implementation of the provider licensing and reporting hub, the provider must 
290.22 	use the hub to request reconsideration.

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

290.24 	Sec. 39. Minnesota Statutes 2022, section 245H.07, subdivision 1, is amended to read:
290.25 		Subdivision 1.Generally. (a) The commissioner may decertify a center if a certification 
290.26 	holder:
290.27 	(1) failed to comply with an applicable law or rule;
290.28 	(2) knowingly withheld relevant information from or gave false or misleading information 
290.29 	to the commissioner in connection with an application for certification, in connection with 
291.1 	the background study status of an individual, during an investigation, or regarding compliance 
291.2 	with applicable laws or rules; or
291.3 	(3) has authorization to receive child care assistance payments revoked pursuant to 
291.4 	chapter 119B.
291.5 	(b) When considering decertification, the commissioner shall consider the nature, 
291.6 	chronicity, or severity of the violation of law or rule.
291.7 	(c) When a center is decertified, the center is ineligible to receive a child care assistance 
291.8 	payment under chapter 119B.
291.9 	(d) The commissioner may issue a decertification order to a certification holder through 
291.10 	the provider licensing and reporting hub. When an order is issued through the hub, the 
291.11 	certification holder is deemed to have received the order upon the date of issuance through 
291.12 	the hub.

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

291.14 	Sec. 40. Minnesota Statutes 2022, section 245H.07, subdivision 2, is amended to read:
291.15 		Subd. 2.Reconsideration of decertification. (a) The certification holder may request 
291.16 	reconsideration of the decertification by notifying the commissioner by certified mail or, 
291.17 	by personal service, or through the provider licensing and reporting hub. The request must 
291.18 	be made in writing. If sent by certified mail, the request must be postmarked and sent to the 
291.19 	commissioner within 20 calendar days after the certification holder received the order. If a 
291.20 	request is made by personal service or through the hub, it must be received by the 
291.21 	commissioner within 20 calendar days after the certification holder received the order. With 
291.22 	the request for reconsideration, the certification holder may submit a written argument or 
291.23 	evidence in support of the request for reconsideration.
291.24 	(b) The commissioner's disposition of a request for reconsideration is final and not 
291.25 	subject to appeal under chapter 14.

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

291.27 	Sec. 41. Minnesota Statutes 2022, section 245I.20, subdivision 10, is amended to read:
291.28 		Subd. 10.Application procedures. (a) The applicant for certification must submit any 
291.29 	documents that the commissioner requires on forms approved by the commissioner. Upon 
291.30 	implementation of the provider licensing and reporting hub, applicants must use the hub in 
291.31 	the manner prescribed by the commissioner.
292.1 	(b) Upon submitting an application for certification, an applicant must pay the application 
292.2 	fee required by section 245A.10, subdivision 3.
292.3 	(c) The commissioner must act on an application within 90 working days of receiving 
292.4 	a completed application.
292.5 	(d) When the commissioner receives an application for initial certification that is 
292.6 	incomplete because the applicant failed to submit required documents or is deficient because 
292.7 	the submitted documents do not meet certification requirements, the commissioner must 
292.8 	provide the applicant with written notice that the application is incomplete or deficient. In 
292.9 	the notice, the commissioner must identify the particular documents that are missing or 
292.10 	deficient and give the applicant 45 days to submit a second application that is complete. An 
292.11 	applicant's failure to submit a complete application within 45 days after receiving notice 
292.12 	from the commissioner is a basis for certification denial.
292.13 	(e) The commissioner must give notice of a denial to an applicant when the commissioner 
292.14 	has made the decision to deny the certification application. In the notice of denial, the 
292.15 	commissioner must state the reasons for the denial in plain language. The commissioner 
292.16 	must send or deliver the notice of denial to an applicant by certified mail or, by personal 
292.17 	service, or through the provider licensing and reporting hub. When an order is issued through 
292.18 	the hub, the applicant is deemed to have received the order upon the date of issuance through 
292.19 	the hub. In the notice of denial, the commissioner must state the reasons that the 
292.20 	commissioner denied the application and must inform the applicant of the applicant's right 
292.21 	to request a contested case hearing under chapter 14 and Minnesota Rules, parts 1400.8505
292.22 	to 1400.8612. The applicant may appeal the denial by notifying the commissioner in writing 
292.23 	by certified mail or, by personal service, or through the provider licensing and reporting 
292.24 	hub. If mailed, the appeal must be postmarked and sent to the commissioner within 20 
292.25 	calendar days after the applicant received the notice of denial. If an applicant delivers an 
292.26 	appeal by personal service or through the hub, the commissioner must receive the appeal 
292.27 	within 20 calendar days after the applicant received the notice of denial.

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

292.29 	Sec. 42. Minnesota Statutes 2022, section 245I.20, subdivision 13, is amended to read:
292.30 		Subd. 13.Correction orders. (a) If the applicant or certification holder fails to comply 
292.31 	with a law or rule, the commissioner may issue a correction order. The correction order 
292.32 	must state:
292.33 	(1) the condition that constitutes a violation of the law or rule;
293.1 	(2) the specific law or rule that the applicant or certification holder has violated; and
293.2 	(3) the time that the applicant or certification holder is allowed to correct each violation.
293.3 	(b) If the applicant or certification holder believes that the commissioner's correction 
293.4 	order is erroneous, the applicant or certification holder may ask the commissioner to 
293.5 	reconsider the part of the correction order that is allegedly erroneous. An applicant or 
293.6 	certification holder must make a request for reconsideration in writing. The request must 
293.7 	be postmarked and sent to the commissioner or submitted in the provider licensing and 
293.8 	reporting hub within 20 calendar days after the applicant or certification holder received 
293.9 	the correction order; and the request must:
293.10 	(1) specify the part of the correction order that is allegedly erroneous;
293.11 	(2) explain why the specified part is erroneous; and
293.12 	(3) include documentation to support the allegation of error.
293.13 	(c) A request for reconsideration does not stay any provision or requirement of the 
293.14 	correction order. The commissioner's disposition of a request for reconsideration is final 
293.15 	and not subject to appeal.
293.16 	(d) If the commissioner finds that the applicant or certification holder failed to correct 
293.17 	the violation specified in the correction order, the commissioner may decertify the certified 
293.18 	mental health clinic according to subdivision 14.
293.19 	(e) Nothing in this subdivision prohibits the commissioner from decertifying a mental 
293.20 	health clinic according to subdivision 14.
293.21 	(f) The commissioner may issue a correction order to the applicant or certification holder 
293.22 	through the provider licensing and reporting hub. When an order is issued through the hub, 
293.23 	the applicant or certification holder is deemed to have received the order upon the date of 
293.24 	issuance through the hub.

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

293.26 	Sec. 43. Minnesota Statutes 2022, section 245I.20, subdivision 14, is amended to read:
293.27 		Subd. 14.Decertification. (a) The commissioner may decertify a mental health clinic 
293.28 	if a certification holder:
293.29 	(1) failed to comply with an applicable law or rule; or
294.1 	(2) knowingly withheld relevant information from or gave false or misleading information 
294.2 	to the commissioner in connection with an application for certification, during an 
294.3 	investigation, or regarding compliance with applicable laws or rules.
294.4 	(b) When considering decertification of a mental health clinic, the commissioner must 
294.5 	consider the nature, chronicity, or severity of the violation of law or rule and the effect of 
294.6 	the violation on the health, safety, or rights of clients.
294.7 	(c) If the commissioner decertifies a mental health clinic, the order of decertification 
294.8 	must inform the certification holder of the right to have a contested case hearing under 
294.9 	chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The commissioner may 
294.10 	issue the order through the provider licensing and reporting hub. When an order is issued 
294.11 	through the hub, the certification holder is deemed to have received the order upon the date 
294.12 	of issuance through the hub. The certification holder may appeal the decertification. The 
294.13 	certification holder must appeal a decertification in writing and send or deliver the appeal 
294.14 	to the commissioner by certified mail or, by personal service, or through the provider 
294.15 	licensing and reporting hub. If the certification holder mails the appeal, the appeal must be 
294.16 	postmarked and sent to the commissioner within ten calendar days after the certification 
294.17 	holder receives the order of decertification. If the certification holder delivers an appeal by 
294.18 	personal service or through the hub, the commissioner must receive the appeal within ten 
294.19 	calendar days after the certification holder received the order. If a certification holder submits 
294.20 	a timely appeal of an order of decertification, the certification holder may continue to operate 
294.21 	the program until the commissioner issues a final order on the decertification.
294.22 	(d) If the commissioner decertifies a mental health clinic pursuant to paragraph (a), 
294.23 	clause (1), based on a determination that the mental health clinic was responsible for 
294.24 	maltreatment, and if the certification holder appeals the decertification according to paragraph 
294.25 	(c), and appeals the maltreatment determination under section 260E.33, the final 
294.26 	decertification determination is stayed until the commissioner issues a final decision regarding 
294.27 	the maltreatment appeal.

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

294.29 	Sec. 44. Minnesota Statutes 2022, section 245I.20, subdivision 16, is amended to read:
294.30 		Subd. 16.Notifications required and noncompliance. (a) A certification holder must 
294.31 	notify the commissioner, in a manner prescribed by the commissioner, and obtain the 
294.32 	commissioner's approval before making any change to the name of the certification holder 
294.33 	or the location of the mental health clinic. Upon implementation of the provider licensing 
295.1 	and reporting hub, certification holders must enter and update information in the hub in a 
295.2 	manner prescribed by the commissioner.
295.3 	(b) Changes in mental health clinic organization, staffing, treatment, or quality assurance 
295.4 	procedures that affect the ability of the certification holder to comply with the minimum 
295.5 	standards of this section must be reported in writing by the certification holder to the 
295.6 	commissioner within 15 days of the occurrence. Review of the change must be conducted 
295.7 	by the commissioner. A certification holder with changes resulting in noncompliance in 
295.8 	minimum standards must receive written notice and may have up to 180 days to correct the 
295.9 	areas of noncompliance before being decertified. Interim procedures to resolve the 
295.10 	noncompliance on a temporary basis must be developed and submitted in writing to the 
295.11 	commissioner for approval within 30 days of the commissioner's determination of the 
295.12 	noncompliance. Not reporting an occurrence of a change that results in noncompliance 
295.13 	within 15 days, failure to develop an approved interim procedure within 30 days of the 
295.14 	determination of the noncompliance, or nonresolution of the noncompliance within 180 
295.15 	days will result in immediate decertification.
295.16 	(c) The mental health clinic may be required to submit written information to the 
295.17 	department to document that the mental health clinic has maintained compliance with this 
295.18 	section and mental health clinic procedures.

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

295.20 	Sec. 45. Minnesota Statutes 2022, section 256B.0625, subdivision 5m, is amended to read:
295.21 		Subd. 5m.Certified community behavioral health clinic services. (a) Medical 
295.22 	assistance covers services provided by a not-for-profit certified community behavioral health 
295.23 	clinic (CCBHC) that meets the requirements of section 245.735, subdivision 3 sections 
295.24 	245.7351 to 245.736.
295.25 	(b) The commissioner shall reimburse CCBHCs on a per-day basis for each day that an 
295.26 	eligible service is delivered using the CCBHC daily bundled rate system for medical 
295.27 	assistance payments as described in paragraph (c). The commissioner shall include a quality 
295.28 	incentive payment in the CCBHC daily bundled rate system as described in paragraph (e). 
295.29 	There is no county share for medical assistance services when reimbursed through the 
295.30 	CCBHC daily bundled rate system.
295.31 	(c) The commissioner shall ensure that the CCBHC daily bundled rate system for CCBHC 
295.32 	payments under medical assistance meets the following requirements:
296.1 	(1) the CCBHC daily bundled rate shall be a provider-specific rate calculated for each 
296.2 	CCBHC, based on the daily cost of providing CCBHC services and the total annual allowable 
296.3 	CCBHC costs divided by the total annual number of CCBHC visits. For calculating the 
296.4 	payment rate, total annual visits include visits covered by medical assistance and visits not 
296.5 	covered by medical assistance. Allowable costs include but are not limited to the salaries 
296.6 	and benefits of medical assistance providers; the cost of CCBHC services provided under 
296.7 	section 245.735, subdivision 3, paragraph (a), clauses (6) and (7) 245.7358; and other costs 
296.8 	such as insurance or supplies needed to provide CCBHC services;
296.9 	(2) payment shall be limited to one payment per day per medical assistance enrollee 
296.10 	when an eligible CCBHC service is provided. A CCBHC visit is eligible for reimbursement 
296.11 	if at least one of the CCBHC services listed under section 245.735, subdivision 3, paragraph 
296.12 	(a), clause (6) 245.7358, is furnished to a medical assistance enrollee by a health care 
296.13 	practitioner or licensed agency employed by or under contract with a CCBHC;
296.14 	(3) initial CCBHC daily bundled rates for newly certified CCBHCs under section 245.735, 
296.15 	subdivision 3, sections 245.7351 to 245.736 shall be established by the commissioner using 
296.16 	a provider-specific rate based on the newly certified CCBHC's audited historical cost report 
296.17 	data adjusted for the expected cost of delivering CCBHC services. Estimates are subject to 
296.18 	review by the commissioner and must include the expected cost of providing the full scope 
296.19 	of CCBHC services and the expected number of visits for the rate period;
296.20 	(4) the commissioner shall rebase CCBHC rates once every three two years following 
296.21 	the last rebasing and no less than 12 months following an initial rate or a rate change due 
296.22 	to a change in the scope of services;
296.23 	(5) the commissioner shall provide for a 60-day appeals process after notice of the results 
296.24 	of the rebasing;
296.25 	(6) the CCBHC daily bundled rate under this section does not apply to services rendered 
296.26 	by CCBHCs to individuals who are dually eligible for Medicare and medical assistance 
296.27 	when Medicare is the primary payer for the service. An entity that receives a CCBHC daily 
296.28 	bundled rate system that overlaps with the CCBHC rate is not eligible for the CCBHC rate;
296.29 	(7) payments for CCBHC services to individuals enrolled in managed care shall be 
296.30 	coordinated with the state's phase-out of CCBHC wrap payments. The commissioner shall 
296.31 	complete the phase-out of CCBHC wrap payments within 60 days of the implementation 
296.32 	of the CCBHC daily bundled rate system in the Medicaid Management Information System 
296.33 	(MMIS), for CCBHCs reimbursed under this chapter, with a final settlement of payments 
296.34 	due made payable to CCBHCs no later than 18 months thereafter;
297.1 	(8) the CCBHC daily bundled rate for each CCBHC shall be updated by trending each 
297.2 	provider-specific rate by the Medicare Economic Index for primary care services. This 
297.3 	update shall occur each year in between rebasing periods determined by the commissioner 
297.4 	in accordance with clause (4). CCBHCs must provide data on costs and visits to the state 
297.5 	annually using the CCBHC cost report established by the commissioner; and
297.6 	(9) a CCBHC may request a rate adjustment for changes in the CCBHC's scope of 
297.7 	services when such changes are expected to result in an adjustment to the CCBHC payment 
297.8 	rate by 2.5 percent or more. The CCBHC must provide the commissioner with information 
297.9 	regarding the changes in the scope of services, including the estimated cost of providing 
297.10 	the new or modified services and any projected increase or decrease in the number of visits 
297.11 	resulting from the change. Estimated costs are subject to review by the commissioner. Rate 
297.12 	adjustments for changes in scope shall occur no more than once per year in between rebasing 
297.13 	periods per CCBHC and are effective on the date of the annual CCBHC rate update.; and
297.14 	(10) payment for designated collaborating organization services is included within the 
297.15 	scope of the CCBHC daily bundled rate, and designated collaborating organization encounters 
297.16 	must be treated as CCBHC encounters for purposes of establishing the CCBHC daily bundled 
297.17 	rate. Payment must be provided directly to the designated collaborating organization from 
297.18 	the CCBHC based on agreed upon contractual service rates. These rates must be reflective 
297.19 	of fair market value.
297.20 	(d) Managed care plans and county-based purchasing plans shall reimburse CCBHC 
297.21 	providers at the CCBHC daily bundled rate. The commissioner shall monitor the effect of 
297.22 	this requirement on the rate of access to the services delivered by CCBHC providers. If, for 
297.23 	any contract year, federal approval is not received for this paragraph, the commissioner 
297.24 	must adjust the capitation rates paid to managed care plans and county-based purchasing 
297.25 	plans for that contract year to reflect the removal of this provision. Contracts between 
297.26 	managed care plans and county-based purchasing plans and providers to whom this paragraph 
297.27 	applies must allow recovery of payments from those providers if capitation rates are adjusted 
297.28 	in accordance with this paragraph. Payment recoveries must not exceed the amount equal 
297.29 	to any increase in rates that results from this provision. This paragraph expires if federal 
297.30 	approval is not received for this paragraph at any time.
297.31 	(e) The commissioner shall implement a quality incentive payment program for CCBHCs 
297.32 	that meets the following requirements:
297.33 	(1) a CCBHC shall receive a quality incentive payment upon meeting specific numeric 
297.34 	thresholds for performance metrics established by the commissioner, in addition to payments 
298.1 	for which the CCBHC is eligible under the CCBHC daily bundled rate system described in 
298.2 	paragraph (c);
298.3 	(2) a CCBHC must be certified and enrolled as a CCBHC for the entire measurement 
298.4 	year to be eligible for incentive payments;
298.5 	(3) each CCBHC shall receive written notice of the criteria that must be met in order to 
298.6 	receive quality incentive payments at least 90 days prior to the measurement year; and
298.7 	(4) a CCBHC must provide the commissioner with data needed to determine incentive 
298.8 	payment eligibility within six months following the measurement year. The commissioner 
298.9 	shall notify CCBHC providers of their performance on the required measures and the 
298.10 	incentive payment amount within 12 months following the measurement year.
298.11 	(f) All claims to managed care plans for CCBHC services as provided under this section 
298.12 	shall be submitted directly to, and paid by, the commissioner on the dates specified no later 
298.13 	than January 1 of the following calendar year, if:
298.14 	(1) one or more managed care plans does not comply with the federal requirement for 
298.15 	payment of clean claims to CCBHCs, as defined in Code of Federal Regulations, title 42, 
298.16 	section 447.45(b), and the managed care plan does not resolve the payment issue within 30 
298.17 	days of noncompliance; and
298.18 	(2) the total amount of clean claims not paid in accordance with federal requirements 
298.19 	by one or more managed care plans is 50 percent of, or greater than, the total CCBHC claims 
298.20 	eligible for payment by managed care plans.
298.21 	If the conditions in this paragraph are met between January 1 and June 30 of a calendar 
298.22 	year, claims shall be submitted to and paid by the commissioner beginning on January 1 of 
298.23 	the following year. If the conditions in this paragraph are met between July 1 and December 
298.24 	31 of a calendar year, claims shall be submitted to and paid by the commissioner beginning 
298.25 	on July 1 of the following year.
298.26 	(g) A CCBHC must comply with the commissioner's quality assurance reporting 
298.27 	requirements including any required reporting of encounter data, clinical outcomes data, 
298.28 	and quality data.

298.29 	Sec. 46. Minnesota Statutes 2022, section 260E.09, is amended to read:
298.30 	260E.09 REPORTING REQUIREMENTS.
298.31 	(a) An oral report shall be made immediately by telephone or otherwise. An oral report 
298.32 	made by a person required under section 260E.06, subdivision 1, to report shall be followed 
299.1 	within 72 hours, exclusive of weekends and holidays, by a report in writing to the appropriate 
299.2 	police department, the county sheriff, the agency responsible for assessing or investigating 
299.3 	the report, or the local welfare agency.
299.4 	(b) Any report shall be of sufficient content to identify the child, any person believed 
299.5 	to be responsible for the maltreatment of the child if the person is known, the nature and 
299.6 	extent of the maltreatment, and the name and address of the reporter. The local welfare 
299.7 	agency or agency responsible for assessing or investigating the report shall accept a report 
299.8 	made under section 260E.06 notwithstanding refusal by a reporter to provide the reporter's 
299.9 	name or address as long as the report is otherwise sufficient under this paragraph.
299.10 	(c) Notwithstanding paragraph (a), upon implementation of the provider licensing and 
299.11 	reporting hub, an individual required to report under section 260E.06, subdivision 1, may 
299.12 	submit a written report in the hub in a manner prescribed by the commissioner and is not 
299.13 	required to make an oral report. Individuals submitting a report through the hub must comply 
299.14 	with the timelines in paragraph (a).

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

299.16 	Sec. 47. Minnesota Statutes 2022, section 270B.14, subdivision 1, is amended to read:
299.17 		Subdivision 1.Disclosure to commissioner of human services. (a) On the request of 
299.18 	the commissioner of human services, the commissioner shall disclose return information 
299.19 	regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to the 
299.20 	extent provided in paragraph (b) and for the purposes set forth in paragraph (c).
299.21 	(b) Data that may be disclosed are limited to data relating to the identity, whereabouts, 
299.22 	employment, income, and property of a person owing or alleged to be owing an obligation 
299.23 	of child support.
299.24 	(c) The commissioner of human services may request data only for the purposes of 
299.25 	carrying out the child support enforcement program and to assist in the location of parents 
299.26 	who have, or appear to have, deserted their children. Data received may be used only as set 
299.27 	forth in section 256.978.
299.28 	(d) The commissioner shall provide the records and information necessary to administer 
299.29 	the supplemental housing allowance to the commissioner of human services.
299.30 	(e) At the request of the commissioner of human services, the commissioner of revenue 
299.31 	shall electronically match the Social Security numbers and names of participants in the 
299.32 	telephone assistance plan operated under sections 237.69 to 237.71, with those of property 
300.1 	tax refund filers, and determine whether each participant's household income is within the 
300.2 	eligibility standards for the telephone assistance plan.
300.3 	(f) The commissioner may provide records and information collected under sections 
300.4 	295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid 
300.5 	Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law 
300.6 	102-234. Upon the written agreement by the United States Department of Health and Human 
300.7 	Services to maintain the confidentiality of the data, the commissioner may provide records 
300.8 	and information collected under sections 295.50 to 295.59 to the Centers for Medicare and 
300.9 	Medicaid Services section of the United States Department of Health and Human Services 
300.10 	for purposes of meeting federal reporting requirements.
300.11 	(g) The commissioner may provide records and information to the commissioner of 
300.12 	human services as necessary to administer the early refund of refundable tax credits.
300.13 	(h) The commissioner may disclose information to the commissioner of human services 
300.14 	as necessary for income verification for eligibility and premium payment under the 
300.15 	MinnesotaCare program, under section 256L.05, subdivision 2, as well as the medical 
300.16 	assistance program under chapter 256B.
300.17 	(i) The commissioner may disclose information to the commissioner of human services 
300.18 	necessary to verify whether applicants or recipients for the Minnesota family investment 
300.19 	program, general assistance, the Supplemental Nutrition Assistance Program (SNAP), 
300.20 	Minnesota supplemental aid program, and child care assistance have claimed refundable 
300.21 	tax credits under chapter 290 and the property tax refund under chapter 290A, and the 
300.22 	amounts of the credits.
300.23 	(j) The commissioner may disclose information to the commissioner of human services 
300.24 	necessary to verify income for purposes of calculating parental contribution amounts under 
300.25 	section 252.27, subdivision 2a.
300.26 	(k) The commissioner shall disclose information to the commissioner of human services 
300.27 	to verify the income and tax identification information of:
300.28 	(1) an applicant under section 245A.04, subdivision 1;
300.29 	(2) an applicant under section 245I.20;
300.30 	(3) an applicant under section 245H.03;
300.31 	(4) a license holder; or
300.32 	(5) a certification holder.

301.1 	Sec. 48. DIRECTION TO COMMISSIONER OF HUMAN SERVICES; CERTIFIED 
301.2 	COMMUNITY BEHAVIORAL HEALTH CLINICS AND MENTAL HEALTH 
301.3 	SERVICE CERTIFICATIONS TRANSITION TO LICENSURE.
 301.4 	(a) The commissioner of human services must transition all of the following mental 
301.5 	health services from certification under Minnesota Statutes, chapters 245 and 256B, to 
301.6 	licensure under Minnesota Statutes, chapter 245A, according to the Mental Health Uniform 
301.7 	Service Standards in Minnesota Statutes, chapter 245I, to be effective on or before January 
301.8 	1, 2026:
301.9 	(1) certified community behavioral health clinics;
301.10 	(2) adult rehabilitative mental health services;
301.11 	(3) mobile mental health crisis response services;
301.12 	(4) children's therapeutic services and supports; and
301.13 	(5) community mental health centers.
301.14 	(b) No later than January 1, 2025, the commissioner must submit the proposed legislation 
301.15 	necessary to implement the transition in paragraph (a) to the chairs and ranking minority 
301.16 	members of the legislative committees with jurisdiction over behavioral health services.
301.17 	(c) The commissioner must consult with stakeholders to develop the legislation described 
301.18 	in paragraph (b).

301.19 	Sec. 49. DIRECTION TO COMMISSIONER OF HUMAN SERVICES; CHANGES 
301.20 	TO RESIDENTIAL ADULT MENTAL HEALTH PROGRAM LICENSING 
301.21 	REQUIREMENTS.
 301.22 	(a) The commissioner of human services must consult with stakeholders to determine 
301.23 	the changes to residential adult mental health program licensing requirements in Minnesota 
301.24 	Rules, parts 9520.0500 to 9520.0670, necessary to:
301.25 	(1) update requirements for category I programs to align with current mental health 
301.26 	practices, client rights for similar services, and health and safety needs of clients receiving 
301.27 	services;
301.28 	(2) remove category II classification and requirements; and
301.29 	(3) add licensing requirements to the rule for the Forensic Mental Health Program.
302.1 	(b) The commissioner must use existing authority in Minnesota Statutes, chapter 245A, 
302.2 	to amend Minnesota Rules, parts 9520.0500 to 9520.0670, based on the stakeholder 
302.3 	consultation in paragraph (a) and additional changes as determined by the commissioner.

302.4 	Sec. 50. REPEALER.
 302.5 	Minnesota Statutes 2022, section 245.735, subdivision 3, is repealed.

302.6 	EFFECTIVE DATE. This section is effective July 1, 2023, or upon federal approval, 
302.7 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
302.8 	when federal approval is obtained.

302.9 	ARTICLE 14
302.10 	FORECAST ADJUSTMENTS

302.11	Section 1. DEPARTMENT OF HUMAN SERVICES FORECAST ADJUSTMENT.
 	
302.12 	The dollar amounts shown in the columns marked "Appropriations" are added to or, if 
302.13 	shown in parentheses, are subtracted from the appropriations in Laws 2021, First Special 
302.14 	Session chapter 7, article 15, and Laws 2021, First Special Session chapter 7, article 16, 
302.15 	from the general fund, or any other fund named, to the commissioner of human services for 
302.16 	the purposes specified in this article, to be available for the fiscal year indicated for each 
302.17 	purpose. The figure "2023" used in this article means that the appropriations listed are 
302.18 	available for the fiscal year ending June 30, 2023.

302.19				APPROPRIATIONS
	
302.20				Available for the Year
	
302.21				Ending June 30
	
302.22					2023

302.23
302.24	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

302.25	Subdivision 1.Total Appropriation
 	$
	(1,363,772,000)

302.26	Appropriations by Fund
	
302.27		2023
		
302.28	General
	(1,156,872,000)
		
302.29	Health Care Access
	(196,098,000)
		
302.30	Federal TANF
	(10,802,000)

302.31	Subd. 2.Forecasted Programs
 					
302.32
302.33
303.1
303.2	(a) Minnesota Family 
Investment Program 
(MFIP)/Diversionary Work 
Program (DWP)

303.3	Appropriations by Fund
	
303.4		2023
		
303.5	General
	3,636,000
		
303.6	Federal TANF
	(10,802,000)

303.7	(b) MFIP Child Care Assistance
		(36,957,000)

303.8	(c) General Assistance
		(521,000)

303.9	(d) Minnesota Supplemental Aid
		(5,000)

303.10	(e) Housing Support
		221,000

303.11	(f) Northstar Care for Children
		(12,670,000)

303.12	(g) MinnesotaCare
		(196,098,000)
			
303.13 	This appropriation is from the health care 
303.14 	access fund.

303.15	(h) Medical Assistance

303.16	Appropriations by Fund
	
303.17		2023
		
303.18	General
	(1,110,576,000)
		
303.19	Health Care Access
	0

303.20 	Sec. 3. EFFECTIVE DATE.
 303.21 	Sections 1 and 2 are effective the day following final enactment.

303.22 	ARTICLE 15
303.23 	APPROPRIATIONS

303.24	Section 1. HEALTH AND HUMAN SERVICES APPROPRIATIONS.
 	
303.25 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
303.26 	and for the purposes specified in this article. The appropriations are from the general fund, 
303.27 	or another named fund, and are available for the fiscal years indicated for each purpose. 
303.28 	The figures "2024" and "2025" used in this article mean that the appropriations listed under 
303.29 	them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively. 
303.30 	"The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium" 
303.31 	is fiscal years 2024 and 2025.

304.1				APPROPRIATIONS
	
304.2				Available for the Year
	
304.3				Ending June 30
	
304.4					2024
		2025

304.5
304.6	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

304.7	Subdivision 1.Total Appropriation
 	$
	6,244,921,000
	$
	6,489,006,000

304.8	Appropriations by Fund
	
304.9		2024
	2025
	
304.10	General
	4,949,348,000
	4,597,204,000
	
304.11
304.12	State Government 
Special Revenue
	4,776,000
	5,284,000
	
304.13	Health Care Access
	1,005,106,000
	1,617,914,000
	
304.14	Federal TANF
	285,691,000
	286,604,000
	
304.15 	The amounts that may be spent for each 
304.16 	purpose are specified in the following 
304.17 	subdivisions.

304.18	Subd. 2.TANF Maintenance of Effort
 					
304.19 	(a) Nonfederal expenditures. The 
304.20 	commissioner shall ensure that sufficient 
304.21 	qualified nonfederal expenditures are made 
304.22 	each year to meet the state's maintenance of 
304.23 	effort requirements of the TANF block grant 
304.24 	specified under Code of Federal Regulations, 
304.25 	title 45, section 263.1. In order to meet these 
304.26 	basic TANF maintenance of effort 
304.27 	requirements, the commissioner may report 
304.28 	as TANF maintenance of effort expenditures 
304.29 	only nonfederal money expended for allowable 
304.30 	activities listed in the following clauses:
304.31 	(1) MFIP cash, diversionary work program, 
304.32 	and food assistance benefits under Minnesota 
304.33 	Statutes, chapter 256J;
305.1 	(2) the child care assistance programs under 
305.2 	Minnesota Statutes, sections 119B.03 and 
305.3 	119B.05, and county child care administrative 
305.4 	costs under Minnesota Statutes, section 
305.5 	119B.15;
305.6 	(3) state and county MFIP administrative costs 
305.7 	under Minnesota Statutes, chapters 256J and 
305.8 	256K;
305.9 	(4) state, county, and Tribal MFIP 
305.10 	employment services under Minnesota 
305.11 	Statutes, chapters 256J and 256K;
305.12 	(5) expenditures made on behalf of legal 
305.13 	noncitizen MFIP recipients who qualify for 
305.14 	the MinnesotaCare program under Minnesota 
305.15 	Statutes, chapter 256L;
305.16 	(6) qualifying working family credit 
305.17 	expenditures under Minnesota Statutes, section 
305.18 	290.0671;
305.19 	(7) qualifying Minnesota education credit 
305.20 	expenditures under Minnesota Statutes, section 
305.21 	290.0674; and
305.22 	(8) qualifying Head Start expenditures under 
305.23 	Minnesota Statutes, section 119A.50.
305.24 	(b) Nonfederal expenditures; reporting. For 
305.25 	the activities listed in paragraph (a), clauses 
305.26 	(2) to (8), the commissioner may report only 
305.27 	expenditures that are excluded from the 
305.28 	definition of assistance under Code of Federal 
305.29 	Regulations, title 45, section 260.31.
305.30 	(c) Limitations; exceptions. The 
305.31 	commissioner must not claim an amount of 
305.32 	TANF maintenance of effort in excess of the 
305.33 	75 percent standard in Code of Federal 
306.1 	Regulations, title 45, section 263.1(a)(2), 
306.2 	except:
306.3 	(1) to the extent necessary to meet the 80 
306.4 	percent standard under Code of Federal 
306.5 	Regulations, title 45, section 263.1(a)(1), if it 
306.6 	is determined by the commissioner that the 
306.7 	state will not meet the TANF work 
306.8 	participation target rate for the current year;
306.9 	(2) to provide any additional amounts under 
306.10 	Code of Federal Regulations, title 45, section 
306.11 	264.5, that relate to replacement of TANF 
306.12 	funds due to the operation of TANF penalties; 
306.13 	and
306.14 	(3) to provide any additional amounts that may 
306.15 	contribute to avoiding or reducing TANF work 
306.16 	participation penalties through the operation 
306.17 	of the excess maintenance of effort provisions 
306.18 	of Code of Federal Regulations, title 45, 
306.19 	section 261.43(a)(2).
306.20 	(d) Supplemental expenditures. For the 
306.21 	purposes of paragraph (d), the commissioner 
306.22 	may supplement the maintenance of effort 
306.23 	claim with working family credit expenditures 
306.24 	or other qualified expenditures to the extent 
306.25 	such expenditures are otherwise available after 
306.26 	considering the expenditures allowed in this 
306.27 	subdivision.
306.28 	(e) Reduction of appropriations; exception.
306.29 	The requirement in Minnesota Statutes, section 
306.30 	256.011, subdivision 3, that federal grants or 
306.31 	aids secured or obtained under that subdivision 
306.32 	be used to reduce any direct appropriations 
306.33 	provided by law does not apply if the grants 
306.34 	or aids are federal TANF funds.
307.1 	(f) IT appropriations generally. This 
307.2 	appropriation includes funds for information 
307.3 	technology projects, services, and support. 
307.4 	Notwithstanding Minnesota Statutes, section 
307.5 	16E.0466, funding for information technology 
307.6 	project costs must be incorporated into the 
307.7 	service level agreement and paid to the 
307.8 	Minnesota IT Services by the Department of 
307.9 	Human Services under the rates and 
307.10 	mechanism specified in that agreement.
307.11 	(g) Receipts for systems project.
307.12 	Appropriations and federal receipts for 
307.13 	information technology systems projects for 
307.14 	MAXIS, PRISM, MMIS, ISDS, METS, and 
307.15 	SSIS must be deposited in the state systems 
307.16 	account authorized in Minnesota Statutes, 
307.17 	section 256.014. Money appropriated for 
307.18 	information technology projects approved by 
307.19 	the commissioner of the Minnesota IT 
307.20 	Services funded by the legislature and 
307.21 	approved by the commissioner of management 
307.22 	and budget may be transferred from one 
307.23 	project to another and from development to 
307.24 	operations as the commissioner of human 
307.25 	services considers necessary. Any unexpended 
307.26 	balance in the appropriation for these projects 
307.27 	does not cancel and is available for ongoing 
307.28 	development and operations.
307.29 	(h) Federal SNAP education and training 
307.30 	grants. Federal funds available during fiscal 
307.31 	years 2024 and 2025 for Supplemental 
307.32 	Nutrition Assistance Program Education and 
307.33 	Training and SNAP Quality Control 
307.34 	Performance Bonus grants are appropriated 
307.35 	to the commissioner of human services for the 
308.1 	purposes allowable under the terms of the 
308.2 	federal award. This paragraph is effective the 
308.3 	day following final enactment.

308.4	Subd. 3.Central Office; Operations

308.5	Appropriations by Fund
	
308.6	General
	297,580,000
	258,240,000
	
308.7
308.8	State Government 
Special Revenue
	4,776,000
	5,284,000
	
308.9	Health Care Access
	18,857,000
	20,754,000
	
308.10	Federal TANF
	100,000
	100,000
	
308.11 	(a) Administrative recovery; set-aside. The 
308.12 	commissioner may invoice local entities 
308.13 	through the SWIFT accounting system as an 
308.14 	alternative means to recover the actual cost of 
308.15 	administering the following provisions:
308.16 	(1) the statewide data management system 
308.17 	authorized in Minnesota Statutes, section 
308.18 	125A.744, subdivision 3;
308.19 	(2) repayment of the special revenue 
308.20 	maximization account as provided under 
308.21 	Minnesota Statutes, section 245.495, 
308.22 	paragraph (b);
308.23 	(3) repayment of the special revenue 
308.24 	maximization account as provided under 
308.25 	Minnesota Statutes, section 256B.0625, 
308.26 	subdivision 20, paragraph (k);
308.27 	(4) targeted case management under 
308.28 	Minnesota Statutes, section 256B.0924, 
308.29 	subdivision 6, paragraph (g);
308.30 	(5) residential services for children with severe 
308.31 	emotional disturbance under Minnesota 
308.32 	Statutes, section 256B.0945, subdivision 4, 
308.33 	paragraph (d); and
309.1 	(6) repayment of the special revenue 
309.2 	maximization account as provided under 
309.3 	Minnesota Statutes, section 256F.10, 
309.4 	subdivision 6, paragraph (b).
309.5 	(b) Base level adjustment. The general fund 
309.6 	base is $251,157,000 in fiscal year 2026 and 
309.7 	$248,981,000 in fiscal year 2027. The state 
309.8 	government special revenue base is $4,880,000 
309.9 	in fiscal year 2026 and $4,880,000 in fiscal 
309.10 	year 2027.

309.11	Subd. 4.Central Office; Children and Families

309.12	Appropriations by Fund
	
309.13	General
	40,568,000
	42,523,000
	
309.14	Federal TANF
	3,572,000
	3,676,000
	
309.15 	(a) $64,000 in fiscal year 2024 and $32,000 
309.16 	in fiscal year 2025 from the general fund are 
309.17 	for a quadrennial review of child support 
309.18 	guidelines. Funds will be transferred to the 
309.19 	special revenue fund.
309.20 	(b) Base level adjustment. The general fund 
309.21 	base is $41,848,000 in fiscal year 2026 and 
309.22 	$40,452,000 in fiscal year 2027.

309.23	Subd. 5.Central Office; Health Care

309.24	Appropriations by Fund
	
309.25	General
	49,059,000
	32,969,000
	
309.26	Health Care Access
	28,168,000
	28,168,000
	
309.27 	(a) $1,350,000 in fiscal year 2024 is from the 
309.28 	general fund to the commissioner of human 
309.29 	services to improve the accessibility of 
309.30 	Minnesota health care programs applications, 
309.31 	forms, and other consumer support resources 
309.32 	and services to enrollees with limited English 
309.33 	proficiency.
310.1 	(b) $510,000 in fiscal year 2024 and 
310.2 	$1,020,000 in fiscal year 2025 is from the 
310.3 	general fund for contracts with 
310.4 	community-based organizations to facilitate 
310.5 	conversations with applicants and enrollees 
310.6 	in Minnesota health care programs to improve 
310.7 	the application, enrollment, and service 
310.8 	delivery experience in medical assistance and 
310.9 	MinnesotaCare.
310.10 	(c) The general fund base is $32,111,000 in 
310.11 	fiscal year 2026 and $35,798,000 in fiscal year 
310.12 	2027.

310.13
310.14	Subd. 6.Central Office; Continuing Care for 
Older Adults

310.15	Appropriations by Fund
	
310.16	General
	1,098,000
	1,277,000

310.17
310.18
310.19	Subd. 7.Central Office; Behavioral Health, 
Housing, and Deaf and Hard of Hearing 
Services

310.20	Appropriations by Fund
	
310.21	General
	30,483,000
	31,113,000
	
310.22 	(a) $150,000 in fiscal year 2025 is from the 
310.23 	general fund and provides funding for 
310.24 	evaluating outcomes for the additional grant 
310.25 	funding for the expansion of base funding for 
310.26 	the PATH grants.  The base for this purpose is 
310.27 	$0 in fiscal year 2026 and $150,000 in fiscal 
310.28 	year 2027.
310.29 	(b) $1,720,000 in fiscal year 2024 and 
310.30 	$1,720,000 in fiscal year 2025 is from the 
310.31 	general fund and provides funding for an 
310.32 	online behavioral health program locator with 
310.33 	continued expansion of the provider database 
310.34 	allowing people to research and access mental 
311.1 	health and substance use disorder treatment 
311.2 	options.
311.3 	(c) Base level adjustment. The general fund 
311.4 	base is $30,752,000 in fiscal year 2026 and 
311.5 	$30,902,000 in fiscal year 2027.

311.6	Subd. 8.Forecasted Programs; MFIP/DWP

311.7	Appropriations by Fund
	
311.8	General
	84,134,000
	86,417,000
	
311.9	Federal TANF
	114,075,000
	114,884,000

311.10
311.11	Subd. 9.Forecasted Programs; MFIP Child Care 
Assistance
 		46,989,000
		150,099,000

311.12
311.13	Subd. 10.Forecasted Programs; General 
Assistance
 		72,248,000
		81,553,000
	
311.14 	The amount appropriated for emergency 
311.15 	general assistance is limited to no more than 
311.16 	$6,729,812 in fiscal year 2024 and $6,729,812 
311.17 	in fiscal year 2025. Funds to counties shall be 
311.18 	allocated by the commissioner using the 
311.19 	allocation method under Minnesota Statutes, 
311.20 	section 256D.06.

311.21
311.22	Subd. 11.Forecasted Programs; Minnesota 
Supplemental Aid
 		56,195,000
		57,930,000

311.23
311.24	Subd. 12.Forecasted Programs; Housing 
Support
 		212,572,000
		222,635,000

311.25
311.26	Subd. 13.Forecasted Programs; Northstar Care 
for Children
 		120,060,000
		127,740,000

311.27	Subd. 14.Forecasted Programs; MinnesotaCare
 		84,028,000
		56,028,000
	
311.28 	These appropriations are from the health care 
311.29 	access fund.

311.30
311.31	Subd. 15.Forecasted Programs; Medical 
Assistance

311.32	Appropriations by Fund
	
311.33	General
	3,249,235,000
	2,723,857,000
	
311.34	Health Care Access
	869,524,000
	1,509,499,000
	
312.1 	The health care access fund base is 
312.2 	$612,099,000 in fiscal year 2026, 
312.3 	$1,134,585,000 in fiscal year 2027, and 
312.4 	$612,099,000 in fiscal year 2028.

312.5
312.6	Subd. 16.Forecasted Programs; Behavioral 
Health Fund
 		156,000
		264,000

312.7
312.8	Subd. 17.Grant Programs; Support Services 
Grants

312.9	Appropriations by Fund
	
312.10	General
	8,715,000
	8,715,000
	
312.11	Federal TANF
	96,311,000
	96,311,000

312.12
312.13	Subd. 18.Grant Programs; BSF Child Care 
Grants
 		68,402,000
		119,785,000
	
312.14 	The general fund base is $145,462,000 in 
312.15 	fiscal year 2026 and $142,412,000 in fiscal 
312.16 	year 2027.

312.17
312.18	Subd. 19.Grant Programs; Child Care 
Development Grants
 		170,337,000
		177,656,000
	
312.19 	(a) Child care retention program.
312.20 	$120,000,000 in fiscal year 2024 and 
312.21 	$168,704,000 in fiscal year 2025 are for the 
312.22 	child care retention program payments under 
312.23 	Minnesota Statutes, section 119B.27. The base 
312.24 	for this program is $161,700,000 in fiscal year 
312.25 	2026 and $161,714,000 in fiscal year 2027. 
312.26 	Funds appropriated for this purpose in each 
312.27 	fiscal year are available for two fiscal years.
312.28 	(b) Transition grant program. $46,550,000 
312.29 	in fiscal year 2024 is for transition grants for 
312.30 	child care providers that intend to participate 
312.31 	in the child care retention program. This 
312.32 	onetime appropriation is available until June 
312.33 	30, 2025.
313.1 	(c) Base level adjustment. The general fund 
313.2 	base is $170,652,000 in fiscal year 2026 and 
313.3 	$170,667,000 in fiscal year 2027.

313.4
313.5	Subd. 20.Grant Programs; Child Support 
Enforcement Grants
 		50,000
		50,000

313.6
313.7	Subd. 21.Grant Programs; Children's Services 
Grants

313.8	Appropriations by Fund
	
313.9	General
	84,024,000
	105,668,000
	
313.10	Federal TANF
	140,000
	140,000
	
313.11 	(a) Mille Lacs Band of Ojibwe American 
313.12 	Indian child welfare initiative. $3,337,000 
313.13 	in fiscal year 2024 and $5,294,000 is fiscal 
313.14 	year 2025 is from the general fund to support 
313.15 	activities necessary for the Mille Lacs Band 
313.16 	of Ojibwe to join the American Indian child 
313.17 	welfare initiative. The base is $7,893,000 in 
313.18 	fiscal year 2026 and $7,893,000 in fiscal year 
313.19 	2027.
313.20 	(b) Leech Lake Band of Ojibwe American 
313.21 	Indian child welfare initiative. $1,848,000 
313.22 	in fiscal year 2024 and $1,848,000 is fiscal 
313.23 	year 2025 is from the general fund to the 
313.24 	Leech Lake Band of Ojibwe to participate in 
313.25 	the American Indian child welfare initiative.
313.26 	(c) Red Lake Band of Chippewa American 
313.27 	Indian child welfare initiative. $3,000,000 
313.28 	in fiscal year 2024 and $3,000,000 is fiscal 
313.29 	year 2025 is from the general fund to the Red 
313.30 	Lake Band of Chippewa to participate in the 
313.31 	American Indian child welfare initiative.
313.32 	(d) Staffing increase for Tribal nations.
313.33 	$800,000 in fiscal year 2024 and $800,000 in 
313.34 	fiscal year 2025 is from the general fund for 
314.1 	Tribal nations to expand staff capacity to 
314.2 	provide child welfare services.
314.3 	(e) $764,000 in fiscal year 2024 and $764,000 
314.4 	in fiscal year 2025 from the general fund is 
314.5 	for grants for kinship navigator services and 
314.6 	grants to Tribal nations for kinship navigator 
314.7 	services. The base is $750,000 in fiscal year 
314.8 	2026 and $750,000 in fiscal year 2027.
314.9 	(f) $6,100,000 in fiscal year 2024 and 
314.10 	$9,800,000 in fiscal year 2025 are for Family 
314.11 	First Prevention and Early Intervention Grants 
314.12 	pursuant to Minnesota Statutes, section 
314.13 	260.014.
314.14 	(g) $3,000,000 in fiscal year 2024 and 
314.15 	$7,000,000 in fiscal year 2025 are for grants 
314.16 	to support prevention and early intervention 
314.17 	services to implement and build upon 
314.18 	Minnesota's Family First Prevention Services 
314.19 	Act Title IV-E Prevention Services plan under 
314.20 	Minnesota Statutes, section 260.014. The base 
314.21 	includes $10,000,000 in fiscal year 2026 and 
314.22 	$10,000,000 in fiscal year 2027.
314.23 	(h) $450,000 in fiscal year 2024 and $450,000 
314.24 	in fiscal year 2025 are for grants to one or 
314.25 	more grantees to establish and manage a pool 
314.26 	of state-funded qualified individuals to assess 
314.27 	potential out-of-home placement of a child in 
314.28 	a qualified residential treatment program.
314.29 	(i) $1,958,000 in fiscal year 2024 and 
314.30 	$2,095,000 in fiscal year 2025 is from the 
314.31 	general fund for the STAY in the community 
314.32 	program, pursuant Minnesota Statutes, section 
314.33 	260C.452. Funds are available until June 30, 
314.34 	2025.
315.1 	(j) $600,000 in fiscal year 2024 and 
315.2 	$1,200,000 in fiscal year 2025 is from the 
315.3 	general fund for the support beyond 21 
315.4 	program pursuant to Minnesota Statutes, 
315.5 	section 256.4792. Funds are available until 
315.6 	June 30, 2025.
315.7 	(k) $800,000 in fiscal year 2024 and $800,000 
315.8 	in fiscal year 2025 is from the general fund 
315.9 	for minor connect program pursuant to 
315.10 	Minnesota Statutes, section 256K.47.  Funds 
315.11 	are available until June 30, 2025.
315.12 	(l) $3,000,000 in fiscal year 2024 and 
315.13 	$3,000,000 in fiscal year 2025 is from the 
315.14 	general fund to provide grants to counties and 
315.15 	American Indian child welfare initiative Tribes 
315.16 	to be used to reduce extended foster care 
315.17 	caseload sizes.  Funds are available until June 
315.18 	30, 2025.
315.19 	(m) $770,000 in fiscal year 2024 and $770,000 
315.20 	in fiscal year 2025 for an increase in the public 
315.21 	private adoption initiative in order to carry out 
315.22 	the commissioner's duties under Minnesota 
315.23 	Statutes, section 256.01, subdivision 2, 
315.24 	paragraph (h).
315.25 	(n) Grants to community resource centers; $0 
315.26 	in fiscal year 2024 and $11,250,000 in fiscal 
315.27 	year 2025 from the general fund is for 
315.28 	community resource centers, pursuant to 
315.29 	Minnesota Statutes, section 260C.30. The base 
315.30 	is $14,528,000 in fiscal year 2026 and 
315.31 	$14,528,000 in fiscal year 2027.
315.32 	(o) Base level adjustment. The general fund 
315.33 	base is $114,766,000 in fiscal year 2026 and 
315.34 	$114,766,000 in fiscal year 2027.

316.1
316.2	Subd. 22.Grant Programs; Children and 
Community Service Grants
 		60,856,000
		60,856,000

316.3
316.4	Subd. 23.Grant Programs; Children and 
Economic Support Grants
 		90,609,000
		77,109,000
	
316.5 	(a) $400,000 in fiscal year 2024 is from the 
316.6 	general fund to the commissioner for start-up 
316.7 	grants to the Red Lake Nation, White Earth 
316.8 	Nation, and Mille Lacs Band of Ojibwe to 
316.9 	develop a fraud prevention program. This 
316.10 	onetime appropriation is available until June 
316.11 	30, 2025.
316.12 	(b) Emergency services program.
316.13 	$15,000,000 in fiscal year 2024 and 
316.14 	$20,000,000 in fiscal year 2025 from the 
316.15 	general fund for the emergency services 
316.16 	program under Minnesota Statutes, section 
316.17 	256E.36. Grant allocation balances in the first 
316.18 	year do not cancel but are available in the 
316.19 	second year of the biennium. The base 
316.20 	includes $35,000,000 in fiscal year 2026 and 
316.21 	$35,000,000 in fiscal year 2027.
316.22 	(c) Tribal food sovereignty grants.
316.23 	$3,000,000 in fiscal year 2024 and $3,000,000 
316.24 	in fiscal year 2025 are from the general fund 
316.25 	for grants to support food security among 
316.26 	Tribal nations and American Indian 
316.27 	communities under Minnesota Statutes, section 
316.28 	256E.341. Funds are available until June 30, 
316.29 	2025. The base includes $2,000,000 in fiscal 
316.30 	year 2026 and $2,000,000 in fiscal year 2027.
316.31 	(d) Food support grants. $6,000,000 in fiscal 
316.32 	year 2024 and $6,000,000 in fiscal year 2025 
316.33 	is from the general fund for the Minnesota 
316.34 	food shelf program under Minnesota Statutes, 
317.1 	section 256E.34. Funds are available until June 
317.2 	30, 2025.
317.3 	(e) Outreach and application assistance for 
317.4 	SNAP-eligible Minnesotans. $3,000,000 in 
317.5 	fiscal year 2024 and $3,000,000 in fiscal year 
317.6 	2025 is from the general fund to provide 
317.7 	outreach and application assistance to eligible 
317.8 	Minnesotans who are not enrolled in SNAP. 
317.9 	Funds may be used for support organizations 
317.10 	across the state to provide education, 
317.11 	information, and assistance to help 
317.12 	Minnesotans apply for SNAP using culturally 
317.13 	relevant and community-driven approaches.
317.14 	(f) Capital for emergency food distribution 
317.15 	facilities. $19,000,000 in fiscal year 2024 is 
317.16 	for improving and expanding the infrastructure 
317.17 	of food shelf facilities across the state, 
317.18 	including adding freezer or cooler space and 
317.19 	dry storage space, improving the safety and 
317.20 	sanitation of existing food shelves, and 
317.21 	addressing deferred maintenance or other 
317.22 	facility needs of existing food shelves. Grant 
317.23 	money shall be made available to nonprofit 
317.24 	organizations, federally recognized Tribes, 
317.25 	and local units of government. This is a 
317.26 	onetime appropriation and is available until 
317.27 	June 30, 2027.
317.28 	(g) Base level adjustment. The general fund 
317.29 	base is $93,609,000 in fiscal year 2026 and 
317.30 	$93,609,000 in fiscal year 2027.

317.31	Subd. 24.Grant Programs; Health Care Grants

317.32	Appropriations by Fund
	
317.33	General
	5,811,000
	7,297,000
	
317.34	Health Care Access
	4,529,000
	3,465,000
	
318.1 	(a) $1,000,000 in fiscal year 2024 and 
318.2 	$1,000,000 in fiscal year 2025 is from the 
318.3 	general fund to the commissioner of human 
318.4 	services for funding to the Indian Health Board 
318.5 	of Minneapolis to support continued access to 
318.6 	health care coverage through Minnesota health 
318.7 	care programs, improve access to quality care, 
318.8 	and increase vaccination rates among urban 
318.9 	American Indians. The general fund base for 
318.10 	this appropriation is $1,000,000 in fiscal year 
318.11 	2026 and $0 in fiscal year 2027.
318.12 	(b) $2,000,000 in fiscal year 2025 is from the 
318.13 	general fund for grants to demonstration 
318.14 	participants in a project to develop innovative 
318.15 	cost of care payment models that integrate 
318.16 	social services and health care service delivery 
318.17 	for Medicaid beneficiaries. The base includes 
318.18 	for this proposal $1,260,000 in fiscal year 
318.19 	2026 and $1,260,000 in fiscal year 2027, and 
318.20 	the base is $0 in fiscal year 2028.
318.21 	(c) $1,064,000 in fiscal year 2024 is from the 
318.22 	health care access fund to the commissioner 
318.23 	of human services for grants to organizations 
318.24 	with a MNsure grant services navigator 
318.25 	assister contract in good standing as of June 
318.26 	30, 2022. Funds are available until June 30, 
318.27 	2025. This is a onetime appropriation.
318.28 	(d) Base level adjustment. The general fund 
318.29 	base is $7,071,000 in fiscal year 2026 and 
318.30 	$6,071,000 in fiscal year 2027.

318.31
318.32	Subd. 25.Grant Programs; Deaf and 
Hard-of-Hearing Grants
 		2,886,000
		2,886,000

318.33	Subd. 26.Grant Programs; Disabilities Grants
 		500,000
		2,000,000
	
318.34 	$500,000 in fiscal year 2024 and $2,000,000 
318.35 	in fiscal year 2025 are from the general fund 
319.1 	for the transition to community grant initiative 
319.2 	grant funding under the Laws 2021, First 
319.3 	Special Session chapter 7, article 17, section 
319.4 	6.

319.5
319.6	Subd. 27.Grant Programs; Housing Support 
Grants
 		18,634,000
		10,364,000

319.7
319.8	Subd. 28.Grant Programs; Adult Mental Health 
Grants

319.9	Appropriations by Fund
	
319.10	General
	128,537,000
	142,175,000
	
319.11 	(a) $300,000 in fiscal year 2024 and $300,000 
319.12 	in fiscal year 2025 are for adult mental health 
319.13 	initiative grants to the White Earth Nation. 
319.14 	This is a onetime appropriation.
319.15 	(b) $1,375,000 in fiscal year 2024 and 
319.16 	$5,000,000 in fiscal year 2025 are from the 
319.17 	general fund for the transition to community 
319.18 	grant initiative grant funding under Laws 
319.19 	2021, First Special Session chapter 7, article 
319.20 	17, section 6.
319.21 	(c) $4,000,000 in fiscal year 2024 and 
319.22 	$8,000,000 in fiscal year 2025 are from the 
319.23 	general fund for the mobile crisis grants under 
319.24 	the Laws 2021, First Special Session chapter 
319.25 	7, article 17, section 11.
319.26 	(d) $1,000,000 in fiscal year 2024 and 
319.27 	$1,000,000 in fiscal year 2025 are from the 
319.28 	general fund for mobile crisis funds to Tribal 
319.29 	nations.
319.30 	(e) Base level adjustment. The general fund 
319.31 	base is $152,483,000 in fiscal year 2026 and 
319.32 	$152,465,000 in fiscal year 2027.

319.33
319.34	Subd. 29.Grant Programs; Child Mental Health 
Grants
 		48,530,000
		46,676,000
	
320.1 	(a) $4,400,000 in fiscal year 2024 and 
320.2 	$4,400,000 in fiscal year 2025 are from the 
320.3 	general fund for school-linked behavioral 
320.4 	health services in intermediate school districts.
320.5 	(b) $1,050,000 in fiscal year 2024 and 
320.6 	$1,050,000 in fiscal year 2025 are from the 
320.7 	general fund for psychiatric residential 
320.8 	treatment facilities specialization grants for 
320.9 	staffing costs to treat and support behavioral 
320.10 	health conditions and support children and 
320.11 	families.
320.12 	(c) $1,250,000 in fiscal year 2024 and 
320.13 	$1,250,000 in fiscal year 2025 are from the 
320.14 	general fund for emerging mood disorder 
320.15 	grants for evidence-informed interventions for 
320.16 	youth and young adults who are at higher risk 
320.17 	of developing a mood disorder or are already 
320.18 	experiencing an emerging mood disorder such 
320.19 	as major depression or bipolar disorder.
320.20 	(d) $1,000,000 in fiscal year 2024 and 
320.21 	$1,000,000 in fiscal year 2025 are from the 
320.22 	general fund for grants to implement the 
320.23 	mobile response and stabilization services 
320.24 	model. The model is to promote access to 
320.25 	crisis response services, reduce admissions to 
320.26 	psychiatric hospitalizations and out-of-home 
320.27 	placement services, which are expensive and 
320.28 	traumatic for children, youth, and families.
320.29 	(e) $1,000,000 in fiscal year 2024 and 
320.30 	$1,000,000 in fiscal year 2025 are from the 
320.31 	general fund and must be used to provide grant 
320.32 	funding to mental health consultants 
320.33 	throughout the state including Tribal nations 
320.34 	for expertise in young children's development 
320.35 	and early childhood services.
321.1 	(f) Base level adjustment. The general fund 
321.2 	base is $50,926,000 in fiscal year 2026 and 
321.3 	$50,926,000 in fiscal year 2027.

321.4
321.5	Subd. 30.Grant Programs; Chemical 
Dependency Treatment Support Grants

321.6	Appropriations by Fund
	
321.7	General
	1,350,000
	1,350,000

321.8	Subd. 31.Technical Activities
 		71,493,000
		71,493,000
	
321.9 	This appropriation is from the federal TANF 
321.10 	fund.

321.11 	Sec. 3. NAVIGATOR ASSISTER GRANTS.
 321.12 	$1,936,000 in fiscal year 2023 is appropriated from the health care access fund to the 
321.13 	commissioner of human services for grants to organizations with a MNsure grant services 
321.14 	navigator assister contract in good standing as of June 30, 2023. The grant payment to each 
321.15 	organization must be in proportion to the number of medical assistance and MinnesotaCare 
321.16 	enrollees each organization assisted that resulted in a successful enrollment in the second 
321.17 	quarter of fiscal years 2020 and 2022, as determined by MNsure's navigator payment process. 
321.18 	This is a onetime appropriation and is available until June 30, 2025.

321.19 	Sec. 4. ASSET DISREGARDS.
 321.20 	$351,000 in fiscal year 2023 is appropriated from the general fund to the commissioner 
321.21 	of human services to implement a temporary asset disregard program in the medical 
321.22 	assistance program. This is a onetime appropriation.

321.23 	Sec. 5. Laws 2021, First Special Session chapter 7, article 16, section 2, subdivision 32, 
321.24 	as amended by Laws 2022, chapter 98, article 15, section 7, subdivision 32, is amended to 
321.25 	read:

321.26
321.27	Subd. 32.Grant Programs; Child Mental Health 
Grants
 		30,167,000
		30,182,000
	
321.28 	(a) Children's Residential Facilities.
321.29 	$1,964,000 in fiscal year 2022 and $1,979,000 
321.30 	in fiscal year 2023 are to reimburse counties 
321.31 	and Tribal governments for a portion of the 
321.32 	costs of treatment in children's residential 
322.1 	facilities. The commissioner shall distribute 
322.2 	the appropriation to counties and Tribal 
322.3 	governments proportionally based on a 
322.4 	methodology developed by the commissioner. 
322.5 	The fiscal year 2022 appropriation is available 
322.6 	until June 30, 2023 base for this activity is $0 
322.7 	in fiscal year 2025.
322.8 	(b) Base Level Adjustment. The general fund 
322.9 	base is $29,580,000 in fiscal year 2024 and 
322.10 	$27,705,000 $25,726,000 in fiscal year 2025.

322.11 	Sec. 6. TRANSFERS.
 322.12 		Subdivision 1.Grants. The commissioner of human services, with the approval of the 
322.13 	commissioner of management and budget, may transfer unencumbered appropriation balances 
322.14 	for the biennium ending June 30, 2025, within fiscal years among the MFIP; general 
322.15 	assistance; medical assistance; MinnesotaCare; MFIP child care assistance under Minnesota 
322.16 	Statutes, section 119B.05; Minnesota supplemental aid program; group residential housing 
322.17 	program; the entitlement portion of Northstar Care for Children under Minnesota Statutes, 
322.18 	chapter 256N; and the entitlement portion of the behavioral health fund between fiscal years 
322.19 	of the biennium. The commissioner shall inform the chairs and ranking minority members 
322.20 	of the legislative committees with jurisdiction over health and human services quarterly 
322.21 	about transfers made under this subdivision.
322.22 		Subd. 2.Administration. Positions, salary money, and nonsalary administrative money 
322.23 	may be transferred within the Department of Human Services as the commissioners consider 
322.24 	necessary, with the advance approval of the commissioner of management and budget. The 
322.25 	commissioners shall inform the chairs and ranking minority members of the legislative 
322.26 	committees with jurisdiction over health and human services finance quarterly about transfers 
322.27 	made under this section.

APPENDIX 

Repealed Minnesota Statutes: 23-03358 

62J.692 MEDICAL EDUCATION.Subd. 4a.Alternative distribution. 
If federal approval is not received for the formula described in subdivision 4, paragraphs (a) and (b), 100 percent of available medical education and research funds shall be distributed based on a distribution formula that reflects a summation of two factors: 

(1) a public program volume factor, that is determined by the total volume of public program revenue received by each training site as a percentage of all public program revenue received by all training sites in the fund pool; and 

(2) a supplemental public program volume factor, that is determined by providing a supplemental payment of 20 percent of each training site's grant to training sites whose public program revenue accounted for at least 0.98 percent of the total public program revenue received by all eligible training sites. Grants to training sites whose public program revenue accounted for less than 0.98 percent of the total public program revenue received by all eligible training sites shall be reduced by an amount equal to the total value of the supplemental payment. 

Subd. 7.Transfers from commissioner of human services. 
Of the amount transferred according to section 256B.69, subdivision 5c, paragraph (a), clauses (1) to (4), $21,714,000 shall be distributed as follows: 

(1) $2,157,000 shall be distributed by the commissioner to the University of Minnesota Board of Regents for the purposes described in sections 137.38 to 137.40; 

(2) $1,035,360 shall be distributed by the commissioner to the Hennepin County Medical Center for clinical medical education; 

(3) $17,400,000 shall be distributed by the commissioner to the University of Minnesota Board of Regents for purposes of medical education; 

(4) $1,121,640 shall be distributed by the commissioner to clinical medical education dental innovation grants in accordance with subdivision 7a; and 

(5) the remainder of the amount transferred according to section 256B.69, subdivision 5c, clauses (1) to (4), shall be distributed by the commissioner annually to clinical medical education programs that meet the qualifications of subdivision 3 based on the formula in subdivision 4, paragraph (a). 

Subd. 7a.Clinical medical education innovations grants. 
(a) The commissioner shall award grants to teaching institutions and clinical training sites for projects that increase dental access for underserved populations and promote innovative clinical training of dental professionals. In awarding the grants, the commissioner, in consultation with the commissioner of human services, shall consider the following: 

(1) potential to successfully increase access to an underserved population; 

(2) the long-term viability of the project to improve access beyond the period of initial funding; 

(3) evidence of collaboration between the applicant and local communities; 

(4) the efficiency in the use of the funding; and 

(5) the priority level of the project in relation to state clinical education, access, and workforce goals. 

(b) The commissioner shall periodically evaluate the priorities in awarding the innovations grants in order to ensure that the priorities meet the changing workforce needs of the state. 

119B.03 BASIC SLIDING FEE PROGRAM.Subd. 4.Funding priority. 
(a) First priority for child care assistance under the basic sliding fee program must be given to eligible non-MFIP families who do not have a high school diploma or commissioner of education-selected high school equivalency certification or who need remedial and basic skill courses in order to pursue employment or to pursue education leading to employment and who need child care assistance to participate in the education program. This includes student parents as defined under section 119B.011, subdivision 19b. Within this priority, the following subpriorities must be used: 

(1) child care needs of minor parents; 

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

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

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

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

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

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

137.38 EDUCATION AND TRAINING OF PRIMARY CARE PHYSICIANS.Subdivision 1.Condition. 
If the Board of Regents accepts the amount transferred under section 62J.692, subdivision 7, clause (1), to be used for the purposes described in sections 137.38 to 137.40, it shall comply with the duties for which the transfer is made. 

245.735 CERTIFIED COMMUNITY BEHAVIORAL HEALTH CLINIC SERVICES.Subd. 3.Certified community behavioral health clinics. 
(a) The commissioner shall establish a state certification process for certified community behavioral health clinics (CCBHCs) that satisfy all federal requirements necessary for CCBHCs certified under this section to be eligible for reimbursement under medical assistance, without service area limits based on geographic area or region. The commissioner shall consult with CCBHC stakeholders before establishing and implementing changes in the certification process and requirements. Entities that choose to be CCBHCs must: 

(1) comply with state licensing requirements and other requirements issued by the commissioner; 

(2) employ or contract for clinic staff who have backgrounds in diverse disciplines, including licensed mental health professionals and licensed alcohol and drug counselors, and staff who are culturally and linguistically trained to meet the needs of the population the clinic serves; 

(3) ensure that clinic services are available and accessible to individuals and families of all ages and genders and that crisis management services are available 24 hours per day; 

(4) establish fees for clinic services for individuals who are not enrolled in medical assistance using a sliding fee scale that ensures that services to patients are not denied or limited due to an individual's inability to pay for services; 

(5) comply with quality assurance reporting requirements and other reporting requirements, including any required reporting of encounter data, clinical outcomes data, and quality data; 

(6) provide crisis mental health and substance use services, withdrawal management services, emergency crisis intervention services, and stabilization services through existing mobile crisis services; screening, assessment, and diagnosis services, including risk assessments and level of care determinations; person- and family-centered treatment planning; outpatient mental health and substance use services; targeted case management; psychiatric rehabilitation services; peer support and counselor services and family support services; and intensive community-based mental health services, including mental health services for members of the armed forces and veterans. CCBHCs must directly provide the majority of these services to enrollees, but may coordinate some services with another entity through a collaboration or agreement, pursuant to paragraph (b); 

(7) provide coordination of care across settings and providers to ensure seamless transitions for individuals being served across the full spectrum of health services, including acute, chronic, and behavioral needs. Care coordination may be accomplished through partnerships or formal contracts with: 

(i) counties, health plans, pharmacists, pharmacies, rural health clinics, federally qualified health centers, inpatient psychiatric facilities, substance use and detoxification facilities, or community-based mental health providers; and 

(ii) other community services, supports, and providers, including schools, child welfare agencies, juvenile and criminal justice agencies, Indian health services clinics, tribally licensed health care and mental health facilities, urban Indian health clinics, Department of Veterans Affairs medical centers, outpatient clinics, drop-in centers, acute care hospitals, and hospital outpatient clinics; 

(8) be certified as a mental health clinic under section 245I.20; 

(9) comply with standards established by the commissioner relating to CCBHC screenings, assessments, and evaluations; 

(10) be licensed to provide substance use disorder treatment under chapter 245G; 

(11) be certified to provide children's therapeutic services and supports under section 256B.0943; 

(12) be certified to provide adult rehabilitative mental health services under section 256B.0623; 

(13) be enrolled to provide mental health crisis response services under section 256B.0624; 

(14) be enrolled to provide mental health targeted case management under section 256B.0625, subdivision 20; 

(15) comply with standards relating to mental health case management in Minnesota Rules, parts 9520.0900 to 9520.0926; 

(16) provide services that comply with the evidence-based practices described in paragraph (e); and 

(17) comply with standards relating to peer services under sections 256B.0615, 256B.0616, and 245G.07, subdivision 2, clause (8), as applicable when peer services are provided. 

(b) If a certified CCBHC is unable to provide one or more of the services listed in paragraph (a), clauses (6) to (17), the CCBHC may contract with another entity that has the required authority to provide that service and that meets the following criteria as a designated collaborating organization: 

(1) the entity has a formal agreement with the CCBHC to furnish one or more of the services under paragraph (a), clause (6); 

(2) the entity provides assurances that it will provide services according to CCBHC service standards and provider requirements; 

(3) the entity agrees that the CCBHC is responsible for coordinating care and has clinical and financial responsibility for the services that the entity provides under the agreement; and 

(4) the entity meets any additional requirements issued by the commissioner. 

(c) Notwithstanding any other law that requires a county contract or other form of county approval for certain services listed in paragraph (a), clause (6), a clinic that otherwise meets CCBHC requirements may receive the prospective payment under section 256B.0625, subdivision 5m, for those services without a county contract or county approval. As part of the certification process in paragraph (a), the commissioner shall require a letter of support from the CCBHC's host county confirming that the CCBHC and the county or counties it serves have an ongoing relationship to facilitate access and continuity of care, especially for individuals who are uninsured or who may go on and off medical assistance. 

(d) When the standards listed in paragraph (a) or other applicable standards conflict or address similar issues in duplicative or incompatible ways, the commissioner may grant variances to state requirements if the variances do not conflict with federal requirements for services reimbursed under medical assistance. If standards overlap, the commissioner may substitute all or a part of a licensure or certification that is substantially the same as another licensure or certification. The commissioner shall consult with stakeholders, as described in subdivision 4, before granting variances under this provision. For the CCBHC that is certified but not approved for prospective payment under section 256B.0625, subdivision 5m, the commissioner may grant a variance under this paragraph if the variance does not increase the state share of costs. 

(e) The commissioner shall issue a list of required evidence-based practices to be delivered by CCBHCs, and may also provide a list of recommended evidence-based practices. The commissioner may update the list to reflect advances in outcomes research and medical services for persons living with mental illnesses or substance use disorders. The commissioner shall take into consideration the adequacy of evidence to support the efficacy of the practice, the quality of workforce available, and the current availability of the practice in the state. At least 30 days before issuing the initial list and any revisions, the commissioner shall provide stakeholders with an opportunity to comment. 

(f) The commissioner shall recertify CCBHCs at least every three years. The commissioner shall establish a process for decertification and shall require corrective action, medical assistance repayment, or decertification of a CCBHC that no longer meets the requirements in this section or that fails to meet the standards provided by the commissioner in the application and certification process. 

245C.02 DEFINITIONS.Subd. 14b.Public law background study. 
"Public law background study" means a background study conducted by the commissioner pursuant to section 245C.032. 

245C.032 PUBLIC LAW BACKGROUND STUDIES.Subdivision 1.Public law background studies. 
(a) Notwithstanding all other sections of chapter 245C, the commissioner shall conduct public law background studies exclusively in accordance with this section. The commissioner shall conduct a public law background study under this section for an individual having direct contact with persons served by a licensed sex offender treatment program under chapters 246B and 253D. 

(b) All terms in this section shall have the definitions provided in section 245C.02. 

(c) The commissioner shall conduct public law background studies according to the following: 

(1) section 245C.04, subdivision 1, paragraphs (a), (b), (d), (g), (h), and (i), subdivision 4a, and subdivision 7; 

(2) section 245C.05, subdivision 1, paragraphs (a) and (d), subdivisions 2, 2c, and 2d, subdivision 4, paragraph (a), clauses (1) and (2), subdivision 5, paragraphs (b) to (f), and subdivisions 6 and 7; 

(3) section 245C.051; 

(4) section 245C.07, paragraphs (a), (b), (d), and (f); 

(5) section 245C.08, subdivision 1, paragraph (a), clauses (1) to (5), paragraphs (b), (c), (d), and (e), subdivision 3, and subdivision 4, paragraphs (a), (c), (d), and (e); 

(6) section 245C.09, subdivisions 1 and 2; 

(7) section 245C.10, subdivision 9; 

(8) section 245C.13, subdivision 1, and subdivision 2, paragraph (a), and paragraph (c), clauses (1) to (3); 

(9) section 245C.14, subdivisions 1 and 2; 

(10) section 245C.15; 

(11) section 245C.16, subdivision 1, paragraphs (a), (b), (c), and (f), and subdivision 2, paragraphs (a) and (b); 

(12) section 245C.17, subdivision 1, subdivision 2, paragraph (a), clauses (1) to (3), clause (6), item (ii), subdivision 3, paragraphs (a) and (b), paragraph (c), clauses (1) and (2), items (ii) and (iii), paragraph (d), clauses (1) and (2), item (ii), and paragraph (e); 

(13) section 245C.18, paragraph (a); 

(14) section 245C.19; 

(15) section 245C.20; 

(16) section 245C.21, subdivision 1, subdivision 1a, paragraph (c), and subdivisions 2, 3, and 4; 

(17) section 245C.22, subdivisions 1, 2, and 3, subdivision 4, paragraphs (a) to (c), subdivision 5, paragraphs (a), (b), and (d), and subdivision 6; 

(18) section 245C.23, subdivision 1, paragraphs (a) and (b), and subdivision 2, paragraphs (a) to (c); 

(19) section 245C.24, subdivision 2, paragraph (a); 

(20) section 245C.25; 

(21) section 245C.27; 

(22) section 245C.28; 

(23) section 245C.29, subdivision 1, and subdivision 2, paragraphs (a) and (c); 

(24) section 245C.30, subdivision 1, paragraphs (a) and (d), and subdivisions 3 to 5; 

(25) section 245C.31; and 

(26) section 245C.32. 

Subd. 2.Classification of public law background study data; access to information. 
All data obtained by the commissioner for a background study completed under this section shall be classified as private data. 

245C.11 BACKGROUND STUDY; COUNTY AGENCIES.Subd. 3.Criminal history data. 
County agencies shall have access to the criminal history data in the same manner as county licensing agencies under this chapter for purposes of background studies completed before the implementation of NETStudy 2.0 by county agencies on legal nonlicensed child care providers to determine eligibility for child care funds under chapter 119B. 

245C.30 VARIANCE FOR A DISQUALIFIED INDIVIDUAL.Subd. 1a.Public law background study variances. 
For a variance related to a public law background study conducted under section 245C.032, the variance shall state the services that may be provided by the disqualified individual and state the conditions with which the license holder or applicant must comply for the variance to remain in effect. The variance shall not state the reason for the disqualification. 

256.8799 SUPPLEMENTAL NUTRITION ASSISTANCE OUTREACH PROGRAM.Subdivision 1.Establishment. 
The commissioner of human services shall establish, in consultation with the representatives from community action agencies, a statewide outreach program to better inform potential recipients of the existence and availability of Supplemental Nutrition Assistance Program (SNAP) benefits under SNAP. As part of the outreach program, the commissioner and community action agencies shall encourage recipients in the use of SNAP benefits at food cooperatives. The commissioner shall explore and pursue federal funding sources, and specifically, apply for funding from the United States Department of Agriculture for the SNAP outreach program. 

Subd. 2.Administration of the program. 
A community association representing community action agencies under section 256E.31, in consultation with the commissioner shall administer the outreach program, issue the request for proposals, and review and approve the potential grantee's plan. Grantees shall comply with the monitoring and reporting requirements as developed by the commissioner in accordance with subdivision 4, and must also participate in the evaluation process as directed by the commissioner. Grantees must successfully complete one year of outreach and demonstrate compliance with all monitoring and reporting requirements in order to be eligible for additional funding. 

Subd. 3.Plan content. 
In approving the plan, the association shall evaluate the plan and give highest priority to a plan that: 

(1) targets communities in which 50 percent or fewer of the residents with incomes below 125 percent of the poverty level receive SNAP benefits; 

(2) demonstrates that the grantee has the experience necessary to administer the program; 

(3) demonstrates a cooperative relationship with the local county social service agencies; 

(4) provides ways to improve the dissemination of information on SNAP as well as other assistance programs through a statewide hotline or other community agencies; 

(5) provides direct advocacy consisting of face-to-face assistance with the potential applicants; 

(6) improves access to SNAP by documenting barriers to participation and advocating for changes in the administrative structure of the program; and 

(7) develops strategies for combatting community stereotypes about SNAP benefit recipients and SNAP, misinformation about the program, and the stigma associated with using SNAP benefits. 

Subd. 4.Coordinated development. 
The commissioner shall consult with representatives from the United States Department of Agriculture, Minnesota Community Action Association, Food First Coalition, Minnesota Department of Human Services, Urban Coalition/University of Minnesota extension services, county social service agencies, local social service agencies, and organizations that have previously administered the state-funded SNAP outreach programs to: 

(1) develop the reporting requirements for the program; 

(2) develop and implement the monitoring of the program; 

(3) develop, coordinate, and assist in the evaluation process; and 

(4) provide an interim report to the legislature by January 1997, and a final report to the legislature by January 1998, which includes the results of the evaluation and recommendations. 

256.9864 REPORTS BY RECIPIENT.
(a) An assistance unit with a recent work history or with earned income shall report monthly to the county agency on income received and other circumstances affecting eligibility or assistance amounts. All other assistance units shall report on income and other circumstances affecting eligibility and assistance amounts, as specified by the state agency. 

(b) An assistance unit required to submit a report on the form designated by the commissioner and within ten days of the due date or the date of the significant change, whichever is later, or otherwise report significant changes which would affect eligibility or assistance amounts, is considered to have continued its application for assistance effective the date the required report is received by the county agency, if a complete report is received within a calendar month in which assistance was received. 

256B.69 PREPAID HEALTH PLANS.Subd. 5c.Medical education and research fund. 
(a) The commissioner of human services shall transfer each year to the medical education and research fund established under section 62J.692, an amount specified in this subdivision. The commissioner shall calculate the following: 

(1) an amount equal to the reduction in the prepaid medical assistance payments as specified in this clause. After January 1, 2002, the county medical assistance capitation base rate prior to plan specific adjustments is reduced 6.3 percent for Hennepin County, two percent for the remaining metropolitan counties, and 1.6 percent for nonmetropolitan Minnesota counties. Nursing facility and elderly waiver payments and demonstration project payments operating under subdivision 23 are excluded from this reduction. The amount calculated under this clause shall not be adjusted for periods already paid due to subsequent changes to the capitation payments; 

(2) beginning July 1, 2003, $4,314,000 from the capitation rates paid under this section; 

(3) beginning July 1, 2002, an additional $12,700,000 from the capitation rates paid under this section; and 

(4) beginning July 1, 2003, an additional $4,700,000 from the capitation rates paid under this section. 

(b) This subdivision shall be effective upon approval of a federal waiver which allows federal financial participation in the medical education and research fund. The amount specified under paragraph (a), clauses (1) to (4), shall not exceed the total amount transferred for fiscal year 2009. Any excess shall first reduce the amounts specified under paragraph (a), clauses (2) to (4). Any excess following this reduction shall proportionally reduce the amount specified under paragraph (a), clause (1). 

(c) Beginning September 1, 2011, of the amount in paragraph (a), the commissioner shall transfer $21,714,000 each fiscal year to the medical education and research fund. 

(d) Beginning September 1, 2011, of the amount in paragraph (a), following the transfer under paragraph (c), the commissioner shall transfer to the medical education research fund $23,936,000 in fiscal years 2012 and 2013 and $49,552,000 in fiscal year 2014 and thereafter. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(1) an employer delays completion of employment verification; 

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

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

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

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

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

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

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

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

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

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

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

(6) spousal support received by an assistance unit; 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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