2023 Legislative Update

CARE PROVIDERS OF MINNESOTA’S

2023 LEGISLATIVE UPDATE

A REPORT ON THE FIRST YEAR

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2023 LEGISLATIVE UPDATE

A report to the membership on the first year of the 93rd Legislative Session

Patti Cullen, CAE President/CEO

Prepared by: Care Providers of Minnesota Advocacy staff

This report does not constitute legal analyses of the changes in law reported herein. For legal opinions on the application of new statutory language to specific fact situations, contact your organization’s legal counsel. This publication may not be reproduced in whole or in part in any form without the written permission of Care Providers of Minnesota. © Care Providers of Minnesota, Inc., 2023

June 29, 2023

Welcome to the 2023 Legislative Update Book! We hope you find the contents useful as a reference to help you understand the laws that passed this year during the 2023 Legislative Session and to help you prepare for implementation. We encourage you to use the information you find in these pages to talk with your own staff, elected officials, customers, family members, and community leaders about topics of concern for you. This was one of the most productive legislative sessions in recent history, so there are many new laws that directly as well as indirectly will impact your operations.

The good news is that the legislature DID pass a biennial budget on time without needing to go into a special session, and the governor signed all of the bills (except for one related to Uber/Lift drivers) into law. In addition, the next biennial budget, which starts on July 1, 2023, includes significant investments in longterm care programs and services. The bad news is that the 2023 Legislature, led by the Democratic Farmer Labor (DFL) party, took advantage of the “trifecta” of DFL-controlled governor’s office, Senate, and House to pass dozens of bills that could be categorized as “business-unfriendly” and more friendly to workers and unions. They also passed bills that could be termed as progressive such as the legalization of recreational cannabis.

It will take some time for the state agencies to fill staff positions to implement these new laws and to analyze some of the more complicated consequences of the laws passed. We have included as much information as we know now about the laws that passed but there are many questions that have been forwarded to the various state agencies and we are waiting for their responses. As we learn more about how some of the laws will be implemented, we will be sure to update you in our weekly newsletter. As you consider how to operationalize some of these new mandates/opportunities, don’t hesitate to ask us questions there may be consequences we haven’t even thought about!

If you have any questions or need more information about anything you find in this book, do not hesitate to contact me at 952-851-2487. You may also access this book and/or individual pages in an electronic version on our website in the “Advocacy” section: www.careproviders.org/advocacy

Sincerely,

Patti Cullen, CAE President/CEO pcullen@careproviders.org

SESSION SUMMARY

Session summary

Monday, May 22, 2023, was the end of the legislative session. Midnight marked the constitutional deadline for the 2023 Minnesota Legislature to adjourn. What happened and how did we get there? To answer those questions, we have to go back in time to November.

The November elections

DFL Gov. Tim Walz won a second term following a race for governor that featured deep divides and big bucks and tested the durability of one party and the viability of the other. With the headwinds of the national midterms, Biden low approval ratings, and inflation, Governor Walz won re-election.

Twin Cities area voters, and an uptick in younger voters, turned out in big numbers for Walz, reinforcing a metro “blue wall” of support that more than countered Republican Scott Jensen’s strength in greater Minnesota.

Voters on Tuesday kept the Minnesota House in the hands of the DFL Party, and DFLers gained control of the state Senate, giving the party total control of the legislature and the governor’s office for the first time in nearly a decade.

Observers expected the governor’s race to hinge on the size of margins Walz could run up in and around urban centers versus those Jensen could accumulate in rural communities, with the results in outer-ring suburbs and regional centers proving pivotal. As vote totals poured after polls closed at 8:00 PM, it appeared that Walz’s strength in the Twin Cities metro area would hold, and that the suburbs were close, but trending toward the DFLers.

The vote for Walz delivered a fourth consecutive term for DFL governors, something unprecedented in state history. Walz and the legislature will face some tough decisions. Despite fears of a recession, Minnesota is in a fiscally advantageous position. A massive surplus went mostly unused in the prior legislative session, allowing for ambitious tax-cut or spending plans when the governor submits a new two-year budget early in 2023.

Senate DFL

Senate Democrats gained a one seat majority by winning 34 of the 37 newly drawn districts that Biden carried in 2020. Many considered the DFL taking the Senate as possible, but not likely. The strength of the suburbs and urban centers such as Duluth, Morehead, Mankato, and St. Cloud carried the DFL to the majority.

Senate Democrats elected Kari Dziedzic majority leader, in a nod to the more moderate arm of the Senate.

House DFL

In what many considered a long shot, the House DFL also defied the midterm head winds to hold onto their majority. A similar story of holding the Metro area, winning some suburbs, and holding some population centers allowed the DFL to maintain a slim majority.

The House DFL will also need to meet and divide up the gavels as there were a number of retirements and new members. The House will likely re-elect Melissa Hortman to be the Speaker of the House, and Rep. Jamie Long as majority leader.

November forecast

The newly-elected majorities received the news of the projected surplus in November. “Strong collections and lower-than-projected spending add to the FY22-23 surplus. Economic headwinds lower expected growth but large leftover surplus and healthy net revenues in FY2425 create estimated $17.6B available for budget.”

As we dig deeper, we see the difference between the one-time money and ongoing numbers that reflect the projected slowing of the economy. This is divided up to about $11 billion in one-time money and about $6 billion in ongoing. Because most spending on long-term care is ongoing, we need to look at the smaller ongoing number. As a reminder, this does not include the inflation numbers which would decrease the projections by approximately $1.5 billion for a total of $4.5 billion in ongoing surplus.

Current biennium

When the last budget and economic forecast was released in February 2022, a surplus of $9.253 billion was projected for the current biennium. Legislative action appropriating supplemental spending and adjusting general fund resources in the 2022 session reduced the projected balance to $7.049 billion. Since then, actual collections have exceeded the forecast and estimated spending has been reduced. With this release, the current biennium is now expected to conclude with a budgetary surplus of $11.605 billion.

Although not the forecast they need to use to balance the budget, it did start the conversation of what will the newly-elected trifecta do with all of that money

Session starts

The 2023 Legislative Session was unlike any previous session we have experienced in Minnesota. The trifecta started out with a sprint and kept the pace until the end of session. Foregoing many of the introductory hearings and overviews, they went straight into passing bills of import from committee to committee and moving things along. Here are a few of the early individual issues addressed by the 2023 legislature:

• In January, the legislature passed Federal Tax Conformity providing nearly $100 million in tax relief to Minnesota businesses, mostly tied to federally forgiven COVID grants and loans. The legislature extended unemployment benefits to Iron Miners and mining related businesses. The legislature also established a fundamental right to reproductive healthcare.

• In February, the legislature set aside $315 million to match federal funding provided by the Infrastructure Investment and Jobs Act. The legislature also modified Minnesota’s electric utility renewable energy standards, putting in place a 100% carbon-free standard for all electric utilities by 2040.

• Other proposals adopted this spring include the restoration of voting rights for felons upon the completion of their incarceration, non-compliant driver’s licenses for individuals regardless of their immigration standards, free school lunches and breakfasts for every Minnesota student and an overhaul of many Minnesota election laws.

The February forecast

“Minnesota budget and economic outlook stable with $17.5 billion balance projected for next biennium, mostly leftover from current biennium. Individual income and corporate franchise tax forecast up, offset by inflation. Revenues forecast to exceed spending through FY2027.”

As we dug deeper, we saw the difference between the one-time money and ongoing numbers that reflect the projected slowing of the economy. This is divided up to about $12.5 billion in one-time money and about $5 billion in ongoing money. As a reminder, unlike previous forecasts, this does include the inflation numbers because of the actions of the legislature to pass legislation that returned inflation to forecasting.

Current biennium

When the last November budget and economic forecast was released, the current biennium was projected to end with a budgetary surplus of $11.617 billion. Higher collections relative to forecast and slightly lower spending result in a projected improvement of $867 million to the ending balance. With this forecast, the FY 2022-23 biennium is now projected to end with a surplus of $12.484 billion.

The February Forecast contains the numbers that the legislature uses to pass their balanced budget at the end of the fiscal year.

Back to session & putting together a budget

Combine a DFL trifecta overseeing a record-setting $18 billion surplus, with three new caucus leaders, oodles of new legislators, many first time chairs, and more than 3,300 bill introductions in EACH body…and the result was a FAST paced session right from day one which pretty much continued throughout.

The DFL delivered on many of their legislative priorities this session and a number of other issues that arose during the session. Despite initially verbalized intentions, there was not a lot of bipartisan effort. Early in the session the process was seemingly rushed on some key legislation. Near the end of the conference committee process, there were a number of policies that seem to have magically appeared without having had any previous public hearings. This is not a new thing at the capitol, but it does have the potential to backfire if the policy proves to be unpopular and the public feels it was a late night backroom end around.

Despite recent hopes for an early adjournment, ultimately our lawmakers needed the entire final weekend of session to finish up work on the remaining budget bills and a few other DFL priority bills. After spending the entire day voting and recessing then voting and recessing followed by more recessing and more voting, the remaining bills on the docket were all successfully passed out of both bodies. The Senate gaveled out at 9:53 PM, and the House adjourned shortly thereafter, at 10:06 PM The legislature will return at noon on Monday, February 12 to begin the 2024 Legislative Session. With the legislature limited to meeting in session no more than 120 days over the two years of the biennium, there will be 43 days available in 2024 for the legislature to meet in session.

A quick look to the budget omnibus bills:

Omnibus bill Language link Spreadsheet link Legacy (signed by the governor)

Higher Education (signed by the governor)

Housing (signed by the governor)

Public Safety (signed by the governor)

Ag & Broadband (signed by the governor)

Commerce

Language Spreadsheet

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K12 Education Language Spreadsheet

Early Education (and Child Care)

Jobs/Economic Development

Environment, Climate and Energy

Human Services

State Gov and Elections

Language Spreadsheet

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Transportation Language Spreadsheet

HHS Language Spreadsheet

Taxes Language Spreadsheet

Bonding Language Spreadsheet

Other highlighted areas

• Health & human services

o $300 million distressed nursing facilities

o $20 million hospital relief

o Elderly Waiver increases

o CADI/BI increases

o Minnesota Care for undocumented

o POLST study

o Nurse safety bill

o Study on Minnesota Care for all public buy-in option

• Education

o Universal school meals means all school students in Minnesota will have access to school breakfasts and lunches at no cost

o A $2.3 billion education budget bill includes historic funding for Minnesota schools and helps close gaps in federal funding for essential services, such as special education

o Over $300 million over the next four years in scholarships to increase early childhood education access for low-income families

o Increases to funding for mental health resources

• Environment

o A ban on the use of per- and polyfluoroalkyl substances, known as PFAS, beginning in 2025

o $1 billion in new spending on environment and energy projects designed to address climate change, including upgrades to Minnesota's electrical grid, the installation of solar panels on public buildings, and funding for reforestation and fish hatcheries

o A $2,500 tax rebate for the purchase of a new electric car costing less than $55,000, and $600 for the purchase of a used electric car costing less than $25,000

o $13 million in rebates for those who install heat pumps in their homes, and $38.5 million "pre-weatherization" funding to help low income people make home upgrades required to be eligible for federal subsidies for eco-friendly home improvements

• Higher education

o Elimination of tuition fees at public colleges and universities and tribal colleges for families who make less than $80,000 a year

o Two-year tuition freeze at Minnesota State Colleges and Universities for all students

o Higher education funding increase of $650 million over next two years, including $292.9 million for Minnesota State and $125.2 million for the University of Minnesota

o $6 million for tribal college grants, $3.2 million for paramedic scholarships, and $2.3 million to fight food insecurity on college campuses

• LGBTQ rights; abortion protections

o The right for every Minnesotan to make "autonomous decisions" about their reproductive health, include access to contraception, abortion, and the right to carry a pregnancy to term, is enshrined in state law

o Protections for out-of-state people seeking abortions in Minnesota, making Minnesota a refuge to those who travel here for the procedure via the restriction on subpoenas and extraditions from states where abortion is banned

o Protections for transgender individuals who seek gender-affirming care in Minnesota from out-of-state prosecutions

o A ban on the practice of conversion therapy for children and vulnerable adults

• Marijuana legalization

o Legalize personal possession of 2 oz. marijuana for adults 21 and over

o Legalize the sale and taxation of marijuana products, creating 15 types of marijuana business licenses including for retail stores, wholesalers, delivery services, cultivators, and event organizers

o Automatically expunge some marijuana convictions

o Establish the Office of Cannabis Management, a new state regulatory agency

• Public safety & gun control

o A so-called "reg flag law", which authorizes extreme risk protection orders to temporarily remove firearms from someone deemed a high risk of injuring themselves or others

o Universal background checks required for private party transfers of pistols and semiautomatic weapons

o $300 million in additional funding for city, county and tribal police departments and sheriff's offices, fire departments, and mental health teams

o New restrictions on when law enforcement can execute no-knock warrants

o Over $43 million over four years to support the Bureau of Criminal Apprehension's work to combat violent crime

• Tax bill

o $1.13 billion for one-time rebates for millions of Minnesotans; married couples earning under $150,000 per year are eligible for $520 and single filers under $78,000 are eligible for a $260 rebate; there will also be $260 payments for each dependent child in a household up to a maximum of three

o Establishment of a new Child Tax Credit equal to 1,750 per-child under age 18

o Expanded eligibility for Social Security tax exemption

• Transportation

o $7.8 billion funding for roads, transit, and airports over next two years

o Index gas tax to inflation to reduce future transportation budget shortfalls

o A $0.50 fee is added to any retail delivery worth over $100

o Increase transit operating dollars through a 0.75% increase to the metro area sales tax

o Repeal of the longtime moratorium barring state agencies from studying commuter rail opportunities between Northfield and Minneapolis on the existing Dan Patch rail line

o Authorize new general fund spending, including $194.7 million for the Northern Lights Express passenger rail between the Twin Cities and Duluth

• Voting rights

o Voting rights were restored to more than 55,000 Minnesotans with felony convictions

o New legislation restores the civil right to vote to individuals who have been convicted of a felony upon their release from incarceration

• Working conditions

o Paid Family and Medical Leave will give Minnesotans up to 12 weeks of partial wage replacement for serious health conditions or pregnancy, and up to 12 weeks for newborn bonding, safety leave, qualifying exigency or family care, funded by a new 0.7% payroll tax split between workers and employers

o Full- and part-time workers can accrue an hour of paid sick and safe leave for every 30 hours worked, accruing up to a maximum of 48 hours a year

o Safety improvements for those who work in meat processing plants and other dangerous settings

o A new standards board created to address the nursing home industry staffing crisis

NURSING FACILITY: PAYMENT

Nursing Home Workforce Standards Board

2023 Regular Session

SF3035/HF3028

Chapter 53, Article 3

Jobs, Economic Development, Labor, and Industry omnibus bill

Effective: Day following enactment

Short description

This bill establishes the Minnesota Nursing Home Workforce Standards Board and requires the board to adopt rules establishing minimum nursing home employment standards for nursing home workers, certifying worker organizations to provide training to nursing home workers, and establishing curriculum requirements for training. It also requires nursing home employers to post notices informing nursing home workers of their rights and obligations under the minimum nursing home employment standards and prohibits nursing home employers from retaliating against nursing home workers for certain conduct. The bill authorizes the commissioner of labor and industry to investigate violations and enforce minimum nursing home employment standards and authorizes civil actions by nursing home workers.

Summary

Section 1. Title. Provides that sections 181.211 to 181.217 may be cited as the Minnesota Nursing Home Workforce Standards Board Act.

Section 2. Employer Liability. Authorizes the commissioner of labor and industry to issue orders to comply with any rule establishing nursing home employment standards under section 181.213 or notice requirements under section 181.215. Further clarifies the employer liability by authorizing the commissioner of labor and industry to impose liability on employers for violations of any rule establishing nursing home employment standards under section 181.213 or notice requirements under section 181.215. Under existing law, the commissioner must order an employer to pay back pay, gratuities, compensatory damages, and liquidated damages to an aggrieved employee, and may impose a civil penalty of up to $1,000 for each willful or repeat violation.

Section 3. Definitions. Defines terms for sections governing the Nursing Home Workforce Standards Board. Terms defined are board, certified worker organization, commissioner, employer organization, nursing home, nursing home employer, nursing home worker, and worker organization.

Section 4. Establishes the Minnesota Nursing Home Workforce Standards Board Establishes the board, specifies voting members of the board, and provides for terms, vacancies, election of a chairperson, staffing, compensation, application of other laws, voting, hearings and investigations, and department support. Further, it lists voting members of the board: the commissioners of human services, health, and labor and industry or designees; three members who represent nursing home employers or employer organizations, appointed by the governor in accordance with existing law; and three members who represent nursing home workers or worker organizations, appointed by the governor in accordance with existing law.

Subd. 2. Terms; vacancies. Provides that board members appointed to represent nursing home employers or employer organizations and nursing home workers or worker organizations shall serve four-year terms following the initial staggered lot determination of term length. Specifies that the governor shall fill vacancies of members representing nursing home employers or employer organizations and nursing home workers or worker organizations by appointment for the unexpired term, and prohibits members appointed to represent nursing home employers or employer organizations and nursing home workers or worker organizations from being appointed to more than two consecutive terms.

Subd. 3. Chairperson. Requires the board to elect a member to serve as its chairperson.

Subd. 4. Staffing. Allows the commissioner to employ an executive director for the board and other personnel.

Subd. 5. Compensation. Allows board members to be compensated at $55 per day spent on board activities, plus expenses as authorized by the commissioner’s plan. Provides that members who are public employees must not receive the daily payment for activities unless they use vacation time or compensatory time and allows members who are public employees to be reimbursed for expenses.

Sub3d. 6. Application of other laws. Provides that board meetings must comply with open meeting law requirements and that the board is subject to the Data Practices Act and existing law governing appointments to multimember agencies.

Subd. 7. Voting. Provides that an affirmative vote of five board members is required to take action.

Subd. 8. Hearings and investigations. Requires the board to hold public hearings and conduct investigations into nursing home working conditions in accordance with section 181.213.

Subd. 9. Department support. Requires the commissioner of labor and industry to provide staff support to the board in performing rulemaking and its assigned duties, as well as office space and supplies.

Subd. 10. Antitrust compliance. Requires the board to establish operating procedures that meet all state and federal antitrust requirements and may prohibit board member access to data to meet the requirements of this subdivision.

Subd. 11. Requires an annual report by December 1, 2023, and each December 1, thereafter, the executive director of the board shall submit a report to the chairs and ranking minority members of the committees of jurisdiction over labor and human services, any actions taken and any standards adopted by the board.

Section 5. Duties of the board; minimum nursing home employment standards. Requires the board to adopt rules that establish minimum nursing home employment standards based on the board’s investigations of market conditions and existing wages, benefits, and working conditions for nursing home workers.

Subd. 1. Authority to establish minimum nursing home employment standards. Requires the board to adopt rules establishing minimum nursing home employment standards that are reasonably necessary and appropriate to protect the health and welfare of nursing home workers, to ensure that nursing home workers are properly trained about and fully informed of their rights. These standards must include standards for compensation and working hours. There is a limitation of “within the forecast” for initial standards for wages that must be established no later than August 1, 2024, and allows the board to use the expedited rulemaking process to adopt initial rules.

If minimum standards considered by the board fall within the jurisdiction of occupational safety and health, requires the board to recommend any occupational safety and health standards to the commissioner of labor and industry, and requires the commissioner to adopt rules establishing the recommended standards unless the recommended standard is outside the scope of commissioner’s authority, poses enforceability challenges, is infeasible to implement, or is otherwise unlawful.

Subd. 2. Investigation of market conditions. Requires the board to investigate market conditions and existing wages, benefits, and working conditions for nursing home workers for specific geographic areas and for specific nursing home occupations, and to seek to adopt minimum standards that meet or exceed existing conditions for a majority of nursing home workers. Makes initial employment standards established by the board effective January 1, 2025, and these standards remain in effect until any subsequent standards are adopted. Lists information the board must consider when making

determinations of reasonably necessary employment standards. Specifies the process by which the board and the commissioner of human services must determine the impact of compliance with new employment standards on the MA nursing facility reimbursement rates. Makes implementation of any new nursing home employment standards contingent upon an appropriation to fund the nursing facility rate increase necessary to comply with the new employment standards. Prohibits the budget and economic forecasts from assuming an increase in nursing facility payment rates resulting from the new employment standards until the board certifies the rates will need to be increased and the legislature appropriates funding for the payment rate increases.

Subd. 3. Review of standards. Requires the board to review previously adopted minimum nursing home employment standards every two years and update the standards or recommend updates to them using the expedited rulemaking process.

Subd. 4. Conflict. Except as provided in paragraphs (b) and (c), if there is a conflict with a rule adopted by the board and a rule adopted by another state agency, the board rule applies to nursing home workers and nursing home employers. However, under paragraph (b), if the conflicting rule adopted by the other state agency is adopted after the board’s rule and is more protective or beneficial than the board’s rule, the rule of the other state agency applies to nursing home workers and nursing home employers. Under paragraph (c), if the commissioner of health determines that a rule adopted or recommended by the board conflicts with a federal regulation or state standard for nursing home certification or licensure of nursing homes, the conflicting federal regulation or state standard will apply to nursing home workers and nursing home employers.

Subd. 5. Effect on other agreements. Provides that the statutes governing the Nursing Home Workforce Standards Board do not limit the rights of parties to a collective bargaining agreement to bargain and agree on nursing home employment standards, and do not diminish the obligations of nursing home employers to comply with contracts, collective bargaining agreements, and employment benefit programs and plans that meet or exceed and do not conflict with the requirements in statutes and board rules.

Section 6. Duties of the board; training for nursing home workers. Adds § 181.214. Requires the board to certify worker organizations to provide training to nursing home workers, establish curriculum requirements, and annually review the adequacy of curriculum requirements and revise them as appropriate. Also lists duties of certified worker organizations and nursing home employers and requires nursing home workers to be compensated for training at their regular hourly rate, plus travel expenses for any offsite training.

Subd. 1. Certification of worker organizations. Requires the board to certify worker organizations to provide training to nursing home workers, and to establish certification criteria in rule and establish a process for renewal of certification. Allows the board to use the expedited rulemaking process to establish certification criteria.

Subd. 2. Curriculum. Requires the board to establish curriculum requirements for nursing home worker training, and lists information a curriculum must provide. Requires the board to hold at least one public hearing to solicit input on the requirements before establishing initial curriculum requirements.

Subd. 3. Topics covered in training session. Provides that a certified worker organization is not required to cover all training topics in a single training session and allows the organization to provide instructions on the topics over the course of up to three training sessions.

Subd. 4. Annual review of curriculum requirements. Requires the board to annually review the adequacy of its curriculum requirements, including holding at least one public hearing to solicit input, and to revise requirements as appropriate.

Subd. 5. Duties of certified worker organizations. Lists requirements for certified worker organizations providing training to nursing home workers. Allows certified worker organizations to survey training attendees to assess the effectiveness of training sessions and industry compliance with the Act and laws governing nursing home working conditions or worker health and safety.

Subd. 6. Nursing home employer duties regarding training. Requires a nursing home employer to certify compliance to the board that every two years each of its nursing home workers completed one hour of required training. If requested by the certified worker organization, requires a nursing home employer to provide the organization with names and contact information of nursing home workers who attended the training, unless nursing home workers opt out of having their information provided.

Subd. 7. Compensation. Requires a nursing home employer to compensate nursing home workers at their regular hourly rate for hours of training completed according to this section and reimburse them for any travel expenses for offsite training sessions.

Section 7. Required notices. Requires nursing home employers to provide notices informing nursing home workers of their rights and obligations regarding applicable minimum nursing home employment standards and local minimum standards. Specifies minimum requirements for providing notice by a readily seen posting or through paper or electronic copies and requires the notice to inform nursing home workers that they may request the notice to be provided in a specific language. Requires the board to adopt rules using the expedited rulemaking process specifying minimum content and posting requirements for notices required in this section, and to make available a template or sample notice.

Section 8. Retaliation prohibited. Prohibits retaliation, including discharge or demotion, against a nursing home worker for exercising any right under the Minnesota Nursing Home Workforce Standards Board Act, for participating in any hearing, investigation, proceeding, or training as provided under the Act, for informing another employer that a nursing home worker has engaged in protected activities under the Act, or for reporting or threatening to report the immigration or citizenship status of a current or former nursing home worker or the worker’s family member. Requires reinstatement with the same conditions of employment for a nursing home worker who experiences retaliation.

Section 9. Enforcement. Provides for enforcement of the Minnesota Nursing Home Workforce Standards Board Act by the commissioner of labor and industry.

Subd. 1. Minimum nursing home employment standards. Except as provided in section 181.213, subdivision 4, paragraphs (b) or (c), requires nursing home employers to follow at least the minimum employment standards for wages and working conditions for nursing home workers. Except as provided in section 181.213, subdivision 4, paragraphs (b) or (c), prohibits nursing home employment that would provide lower wages or worse conditions than the minimum required by state law.

Subd. 2. Investigations. Authorizes the commissioner of labor and industry to investigate suspected violations of the Minnesota Nursing Home Workforce Standards Board Act.

Subd. 3. Civil action by nursing home worker. Allows a nursing home worker or class of nursing home workers aggrieved by a violation of the minimum employment standards under the Act to bring a civil cause of action in district court. Requires the employer to pay any wages, benefits, or overtime owed, plus an additional equal amount as liquidated damages. Allows employees to seek damages and other appropriate relief, including attorney’s fees. Also authorizes the court to issue orders to comply and to order reinstatement of an employee subject to retaliation. Provides that a labor agreement that fails to meet minimum nursing home employment standards is not a defense.

Section 10. Initial appointments. Requires the governor to make initial appointments to the Minnesota Nursing Home Workforce Standards Board no later than August 1, 2023.

Implications

Although there are no immediate implications, there will be long-term implications for nursing homes. The board must be appointed and go through its process to develop and implement the new standards. Initial appointments to the Minnesota Nursing Home Workforce Standards Board are no later than August 1, 2023, with the first set of rules August 1, 2024.

Bill language

Chapter 53, Article 3: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/53/

Critical access nursing facilities

2023 Regular Session

SF2934/HF2847

Chapter 61, Article 2, Sections 9-10

Human Services omnibus bill

Effective: July 1, 2023, or upon federal approval, whichever is later

Short description

With new funding, an estimated 10-12 nursing facilities will be designated a critical access nursing facility (CANF).

Summary

New funding for the CANF program was included in Governor Walz’s human services budget and approved by the 2023 legislature. Prior to the implementation of Value-Based Reimbursement (VBR) in 2016, the CANF program was used to provide some relief to qualifying or designated nursing facilities.

CANF is intended to address the financial viability of rural nursing facilities at risk of closure in order to maintain access to nursing facility care within a reasonable distance from resident’s homes and family.

The restructured CANF program is projected to assist an estimated 10-12 rural nursing facilities by providing an increase to their daily rates. The Minnesota Department of Human Services (DHS) estimates that a 50-bed facility participating in the CANF program will receive approximately $332,000 of new revenue per year.

DHS will design the criteria for selecting nursing facilities based on the goals of preserving access to nursing facility services in isolated areas, rebalancing long-term care, and improving quality. To the extent possible, designated nursing facilities will be geographically balanced throughout Minnesota.

A nursing facility that is selected will sign a memorandum of understanding and receive the program benefits for up to two years. The adjustment will be included in the external fixed rate.

Implications

DHS will revise the old CANF application form and materials and publish a request for proposals from eligible providers. It is expected these materials will be issued in June or July 2023.

Nursing facilities in greater Minnesota and especially rural areas of Minnesota review and consider applying.

Bill language

Chapter 61, Article 2, Sections 9-10: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

Sec. 10. Minnesota Statutes 2022, section 256R.47, is amended to read: 256R.47 RATE ADJUSTMENT FOR CRITICAL ACCESS NURSING FACILITIES.

(a) The commissioner, in consultation with the commissioner of health, may designate certain nursing facilities as critical access nursing facilities. The designation shall be granted on a competitive basis, within the limits of funds appropriated for this purpose.

(b) The commissioner shall request proposals from nursing facilities every two years. Proposals must be submitted in the form and according to the timelines established by the commissioner. In selecting applicants to designate, the commissioner, in consultation with the commissioner of health, and with input from stakeholders, shall develop criteria designed to preserve access to nursing facility services in isolated areas, rebalance long-term care, and improve quality. To the extent practicable, the commissioner shall ensure an even distribution of designations across the state.

(c) The commissioner shall allow the benefits in clauses (1) to (5) For nursing facilities designated as critical access nursing facilities:, the commissioner shall allow a supplemental payment above a facility's operating payment rate as determined to be necessary by the commissioner to maintain access to nursing facility services in isolated areas identified in paragraph (b). The commissioner must approve the amounts of supplemental payments through a memorandum of understanding. Supplemental payments to facilities under this section must be in the form of timelimited rate adjustments included in the external fixed costs payment rate under section 256R.25.

(1) partial rebasing, with the commissioner allowing a designated facility operating payment rates being the sum of up to 60 percent of the operating payment rate determined in accordance with section 256R.21, subdivision 3, and at least 40 percent, with the sum of the two portions being equal to 100 percent, of the operating payment rate that would have been allowed had the facility not been designated. The commissioner may adjust these percentages by up to 20 percent and may approve a request for less than the amount allowed;

(2) enhanced payments for leave days. Notwithstanding section 256R.43, upon designation as a critical access nursing facility, the commissioner shall limit payment for leave days to 60 percent of that nursing facility's total payment rate for the involved resident, and shall allow this payment only when the occupancy of the nursing facility, inclusive of bed hold days, is equal to or greater than 90 percent;

(3) two designated critical access nursing facilities, with up to 100 beds in active service, may jointly apply to the commissioner of health for a waiver of Minnesota Rules, part 4658.0500, subpart 2, in order to jointly employ a director of nursing. The commissioner of health shall consider each waiver request independently based on the criteria under Minnesota Rules, part 4658.0040;

(4) the minimum threshold under section 256B.431, subdivision 15, paragraph (e), shall be 40 percent of the amount that would otherwise apply; and

(5) the quality-based rate limits under section 256R.23, subdivisions 5 to 7, apply to designated critical access nursing facilities.

(d) Designation of a critical access nursing facility is for a maximum period of up to two years, after which the benefits benefit allowed under paragraph (c) shall be removed. Designated facilities may apply for continued designation.

(e) This section is suspended and no state or federal funding shall be appropriated or allocated for the purposes of this section from January 1, 2016, to December 31, 2019.

(e) The memorandum of understanding required by paragraph (c) must state that the designation of a critical access nursing facility must be removed if the facility undergoes a change of ownership as defined in section 144A.06, subdivision 2.

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

Employees of nursing facilities eligible for grants

2023 Regular Session

SF3363/HF3342

Chapter 74, Section 1

Nursing facility funding bill

Effective: August 1, 2023

Short description

The Nursing Facility Workforce Incentive Grant Program allows employers to seek up to $3,000 per employee (or recruited to be employed) earning $30 per hour or less and receive grant funding to provide payments to employees.

Summary

One of the three opportunities contained in the nursing facility funding bill is the Nursing Facility Workforce Incentive Grant Program. The legislature appropriated $74.5 million to be granted to nursing facilities for the specific use of providing payment to employees.

As understood, the Minnesota Department of Human Services (DHS) will issue an application for nursing facilities to complete and submit. DHS is required to create a process that allows for the equitable distribution of money among eligible employers. Presumably, this means that if every nursing facility applies for the full amount of funding that they qualify for and the total request is greater than the appropriation, then DHS will uniformly lower the amount awarded per employee.

Key features of the program

• "Eligible worker" means a worker who earns $30 per hour or less and is currently employed or recruited to be employed by an eligible employer; an eligible worker may receive payments of up to $3,000 per year and all other state money intended for the same purpose

• Nursing facilities will attest to employer eligibility, number of eligible employees, the use of the funding, and record keeping

• Nursing facilities are also required to create and post a distribution plan that describes how the funding is being used

• Grants are not considered income for the employee recipient when determining benefit eligibility

Finally, the grants are considered an “Applicable Credit” for cost reporting and rate setting This means the revenue received from the grant will be offset. As a result, the incentive is for nursing facilities to view the grant as a new and one-time expense to be used for the following:

• Retention, recruitment, and incentive payments

• Employee-owned benefits, such as health savings accounts, HRSA, and flexible spending accounts

• Employee contributions to a 401k account

• education, professional development, and financial counseling

• Childcare, meals, transportation, and housing

• Health and wellness

• Other flexible needs related to workforce challenges as determined by the commissioner

Implications

Nursing facilities should prepare to respond to the application that will be issued this summer. Tasks that may be completed now include the following:

• Create a list of employees earning $30 per hour or less

• Determine maximum grant award (number of employees earning $30 or less times $3,000)

• Discuss possible allowable uses with employees

Bill language

Chapter 74, Section 1: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/74/ Section 1. [256.4766] NURSING FACILITY WORKFORCE INCENTIVE GRANT PROGRAM.

Subdivision 1. Grant program established. The commissioner of human services shall establish grants for nursing facilities to assist with recruiting and retaining eligible workers.

Subd. 2. Definitions. (a) For purposes of this section, the following terms have the meanings given.

(b) "Commissioner" means the commissioner of human services.

(c) "Eligible employer" means a nursing facility as defined in section 256R.02, subdivision 33.

(d) "Eligible worker" means a worker who earns $30 per hour or less and is currently employed or recruited to be employed by an eligible employer.

Subd. 3. Allowable uses of grant money. (a) Grantees must use grant money to provide payments to eligible workers for the following purposes:

(1) retention, recruitment, and incentive payments;

(2) employee-owned benefits, such as health savings accounts, HRSA, and flexible spending accounts;

(3) employee contributions to a 401k account;

(4) education, professional development, and financial counseling;

(5) child care, meals, transportation, and housing;

(6) health and wellness; and

(7) other flexible needs related to workforce challenges as determined by the commissioner.

(b) An eligible worker may receive payments of up to $3,000 per year from the workforce incentive grant account and all other state money intended for the same purpose.

(c) The commissioner must develop a grant cycle distribution plan that allows for equitable distribution of money among eligible employers. The commissioner's determination of the grant awards and amounts is final and is not subject to appeal.

Subd. 4. Attestation. As a condition of obtaining grant payments under this section, an eligible employer must attest and agree to the following:

(1) the employer is an eligible employer;

(2) the total number of eligible employees;

(3) the employer will distribute the entire value of the grant to eligible workers allowed under this section;

(4) the employer will create and maintain records under subdivision 6;

(5) the employer will not use the money appropriated under this section for any purpose other than the purposes permitted under this section; and

(6) the entire value of any grant amounts will be distributed to eligible workers identified by the employer.

Subd. 5 Distribution plan; report. (a) Each grantee shall prepare, and upon request submit to the commissioner, a distribution plan that specifies the amount of money the grantee expects to receive and how that money will be distributed for workforce incentives for eligible employees. Within 60 days of receiving the grant, the grantee must post the distribution plan and leave the plan posted for a period of at least six months in an area of the grantee's operation to which all direct support professionals have access.

(b) Within 12 months of receiving a grant under this section, each grantee that receives a grant shall submit a report to the commissioner that includes the following information:

(1) a description of how grant money was distributed to eligible employees; and

(2) the total dollar amount distributed.

(c) Failure to submit the report under paragraph (b) will result in recoupment of grant money.

Subd. 6. Audits and recoupment. (a) The commissioner may perform an audit under this section up to six years after a grant is awarded to ensure that:

(1) the grantee used the money solely for allowable purposes under subdivision 3;

(2) the grantee was truthful when making attestations under subdivision 4; and

(3) the grantee complied with the conditions of receiving a grant under this section.

(b) If the commissioner determines that a grantee used grant money for purposes not authorized under this section, the commissioner must treat any amount used for a purpose not authorized under this section as an overpayment. The commissioner must recover any overpayment.

Subd. 7. Grants not to be considered income. (a) Notwithstanding any law to the contrary, grant awards under this section must not be considered income, assets, or personal property for purposes of determining eligibility or recertifying eligibility for:

(1) child care assistance programs under chapter 119B;

(2) general assistance, Minnesota supplemental aid, and food support under chapter 256D;

(3) housing support under chapter 256I;

(4) the Minnesota family investment program and diversionary work program under chapter 256J; and

(5) economic assistance programs under chapter 256P.

(b) The commissioner must not consider grant awards under this section as income or assets under section 256B.056, subdivision 1a, paragraph (a), 3, or 3c, or for persons with eligibility determined under section 256B.057, subdivision 3, 3a, 3b, 4, or 9.

Subd. 8. Income tax subtractions. (a) For the purposes of this section, "subtraction" has the meaning given in section 290.0132, subdivision 1, and the rules in that subdivision apply for this section. The definitions in section 290.01 apply to this section.

(b) The amount of a payment received under this section is a subtraction.

(c) Payments under this section are excluded from income as defined in sections 290.0674, subdivision 2a, and 290A.03, subdivision 3.

Subd. 9. Account created. A nursing facility workforce incentive grant account is created in the special revenue fund. Appropriations made for grants and payments administered under this section may be transferred to this account. Amounts in the account are appropriated to the commissioner of human services. Appropriations transferred to this account cancel and are returned to the fund of origin on the date the original appropriations would have lapsed.

Subd. 10. Nursing facilities; applicable credit. The commissioner must treat grant payments awarded under this section as an applicable credit as defined under section 256R.10, subdivision 6.

Non-emergency medical transportation

2023 Regular Session

SF2934/HF2847

Chapter 61, Article 3, Sections 5-8

Human Services omnibus bill

Effective: January 1, 2024

Short description

Additional funding was appropriated for non-emergency medical transportation (NEMT)

Summary

Accessing non-emergency medical transportation (NEMT) can be a challenge, especially in the more rural parts of greater Minnesota.

The 2023 legislature approved additional funding to NEMT, specifically the following:

• A rate increase for nonemergency medical transportation

• An increase to the base rate and milage rates for unassisted transport, assisted transport, and ramp- or lift-equipped transport

• A monthly fuel cost adjustor for NEMT and ambulance services reimbursement rates is established and pegged to $3.00 per gallon

• Managed care plans and county-based purchasing plans are required to provide a rate adjustment for the fuel adjustments

Implications

NEMT has had significant cost challenges the past few years. Hopefully, the increased funding and policy changes allow for an improved response to the challenges.

Bill language

Chapter 61, Article 3, Sections 5-8: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

Nursing facility case mix transition

2023 Regular Session

SF2934/HF2847

Chapter 61, Article 2, Section 8

Human Services omnibus bill

Effective: August 1, 2023

Short description

The change in statute allows Minnesota to adopt a new nursing facility case mix system not based on RUG-III or RUG-IV.

Summary

On October 1, 2023, the Centers for Medicare & Medicaid Services (CMS) will implement a new version of the Minimum Data Set (MDS) to be used by nursing facilities to assess residents. The October 1, 2023, MDS will not support the RUG-IV case mix classification system used by Minnesota for Medicaid and private pay.

The bill modifies a cross-reference related to case-mix classifications and gives the Commissioner of Health authority to establish case mix classifications not based on RUG-III or RUG-IV.

Implications

Minnesota will utilize the Optional State Assessment (OSA) beginning on October 1, 2023, to continue the use of RUG-IV for Medicaid and private pay.

On January 1, 2025, Minnesota will adopt the nursing case mix classification from Medicare PDPM payment system

Bill language

Chapter 61, Article 2, Section 8: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

Nursing Facility Loan Program

2023 Regular Session

SF2934/HF2847

Chapter 61, Article 2, Section 12

Human Services omnibus bill

Effective: July 1, 2023

Short description

Beginning on July 1, 2023, $93,200,000 is available for the financially distressed Nursing Facility Loan Program. $6,800,000 is available for administration of the loan program.

Summary

With a majority of the state budget surplus available only for one-time appropriation, the concept of providing interest free loans to nursing facilities surfaced near the end of the legislative session. Care Providers of Minnesota testified that while the idea was well intentioned, the Association believed a financially distressed nursing facility’s pre-existing lender obligations would preclude the use of the program loans. The language places the State of Minnesota at the front of the line with regard to creditors and repayment.

Criteria—The program provides interest free loans to eligible nursing facilities that demonstrate:

1. The total net income of the nursing facility is not generating sufficient revenue to cover the nursing facility's operating expenses;

2. The nursing facility is at risk of closure; and

3. Additional operating revenue is necessary to either preserve access to nursing facility services within the community or support people with complex, high-acuity support needs.

Terms:

• Interest free

• Disbursement may be made as a lump sum or over defined schedule

• Repayment must not begin until 18-months after disbursement

• Repayment term must not exceed 72 months

• The state may withhold payment for Medicaid services if provider is delinquent by 60 calendar days

• Subject to DHS audit

Finally, the current owner of a nursing facility or boarding care home is liable for the overpayment amount owed by a former owner for any facility sold, transferred, or reorganized.

Implications

Loan applications will be offered at least once per year and conclude on June 30, 2029. DHS will issue program guidance during the summer 2023 and may choose a third-party administrator. Nursing facilities should review program terms and conditions as well as existing lender agreements to determine the utility of loan program.

Bill language

Chapter 61, Article 2, Section 12: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

Sec. 12. [256R.55] FINANCIALLY DISTRESSED NURSING FACILITY LOAN PROGRAM.

Subdivision 1. Financially distressed nursing facility loans. The commissioner of human services shall establish a competitive financially distressed nursing facility loan program to provide operating loans to eligible nursing facilities. The commissioner shall initiate the application process for the loan described in this section at least once annually. A second application process may be initiated each year at the discretion of the commissioner.

Subd. 2. Eligibility. To be an eligible applicant for a loan under this section, a nursing facility must submit to the commissioner of human services a loan application in the form and according to the timelines established by the commissioner. In its loan application, a loan applicant must demonstrate that:

(1) the total net income of the nursing facility is not generating sufficient revenue to cover the nursing facility's operating expenses;

(2) the nursing facility is at risk of closure; and

(3) additional operating revenue is necessary to either preserve access to nursing facility services within the community or support people with complex, high-acuity support needs.

Subd. 3. Approving loans. The commissioner must evaluate all loan applications on a competitive basis and award loans to successful applicants within available appropriations for this purpose. The commissioner's decisions are final and not subject to appeal.

Subd. 4. Disbursement schedule. Successful loan applicants under this section may receive loan disbursements as a lump sum, on an agreed upon disbursement schedule, or as a time-limited line of credit. The commissioner shall approve disbursements to successful loan applicants through a memorandum of understanding. Memoranda of understanding must specify the amount and schedule of loan disbursements.

Subd. 5. Loan administration. The commissioner may contract with an independent third party to administer the loan program under this section.

Subd. 6. Loan payments. The commissioner shall negotiate the terms of the loan repayment, including the start of the repayment plan, the due date of the repayment, and the frequency of the repayment installments. Repayment installments must not begin until at least 18 months after the first disbursement date. The memoranda of understanding must specify the amount and schedule of loan payments. The repayment term must not exceed 72 months. If any loan payment to the commissioner is not paid within the time specified by the memoranda of understanding, the late payment must be assessed a penalty rate of 0.01 percent of the original loan amount each month the payment is past due. This late fee is not an allowable cost on the department's cost report. The commissioner shall have the power to abate penalties when discrepancies occur resulting from but not limited to circumstances of error and mail delivery.

Subd. 7. Loan repayment. (a) If a borrower is more than 60 calendar days delinquent in the timely payment of a contractual payment under this section, the provisions in paragraphs (b) to (e) apply.

(b) The commissioner may withhold some or all of the amount of the delinquent loan payment, together with any penalties due and owing on those amounts, from any money the department owes to the borrower. The commissioner may, at the commissioner's discretion, also withhold future contractual payments from any money the commissioner owes the provider as those contractual payments become due and owing. The commissioner may continue this withholding until the commissioner determines there is no longer any need to do so.

(c) The commissioner shall give prior notice of the commissioner's intention to withhold by mail, facsimile, or email at least ten business days before the date of the first payment period for which the withholding begins. The notice must be deemed received as of the date of mailing or receipt of the facsimile or electronic notice. The notice must:

(1) state the amount of the delinquent contractual payment;

(2) state the amount of the withholding per payment period;

(3) state the date on which the withholding is to begin;

(4) state whether the commissioner intends to withhold future installments of the provider's contractual payments; and

(5) state other contents as the commissioner deems appropriate.

(d) The commissioner, or the commissioner's designee, may enter into written settlement agreements with a provider to resolve disputes and other matters involving unpaid loan contractual payments or future loan contractual payments.

(e) Notwithstanding any law to the contrary, all unpaid loans, plus any accrued penalties, are overpayments for the purposes of section 256B.0641, subdivision 1. The current owner of a nursing home or boarding care home is liable for the overpayment amount owed by a former owner for any facility sold, transferred, or reorganized.

Subd. 8. Audit. Loan money allocated under this section are subject to audit to determine whether the money was spent as authorized under this section.

Subd. 9. Carryforward. Notwithstanding section 16A.28, subdivision 3, any appropriation for the purposes under this section carry forward and do not lapse until the close of the fiscal year in which this section expires.

Subd. 10. Expiration. This section expires June 30, 2029.

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

Nursing facility moratorium policy changes

2023 Regular Session

SF2934/HF2847

Chapter 70, Article 3, Sections 30-31

Health omnibus bill

Effective: Retroactively from March 1, 2020

Short description

The nursing facility moratorium exception process and the use of the Fair Rental Value System (FRV) was clarified.

Summary

In 2019, Minnesota adopted a Fair Rental Value System (FRV) for determining property rates for nursing facility moratorium exception projects. Two years later, the 2021 legislature appropriated $4,000,000, plus any carryover of previous appropriations, per biennium for nursing facility moratorium exception projects.

A FRV property rate system establishes a price for use of space regardless of actual accounting cost, where:

• The state is essentially leasing the facility for the use of their Medicaid patients

• The rental rate is based on an index related to capital costs

• The total replacement cost, current depreciated value and square footage determined by the appraisal is used to determine facility value

• Price is facility value times rental rate adjusted to a per day payment

The changes approved by the 2023 legislature clarify the use of FRV when amending an approved project and removes language used previously by Rule 50 property rate setting.

Implications

First, the language states what is an already accepted and understood outcome of using FRV.

• Reimbursement for amendments to approved projects is independent of the actual construction costs and based on the allowable appraised value of the completed project.

Second, under the previously used Rule 50 rate setting for moratorium projects, a nursing facility could amend a project’s cost by 10%. The new language clarifies that:

• yes, a project’s costs may be approved for a 10% increase; and

• an approved project may not be amended to reduce the scope of an approved project.

Bill language

Chapter 70, Article 3, Sections 30-31: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/70/

Nursing facility temporary rate add-on

2023 Regular Session

SF3363/HF3342

Chapter 74, Section 3

Nursing facility funding bill

Effective: July 1, 2023, or upon federal approval, whichever is later

Short description

Effective July 1, 2023, and expiring on December 31, 2024, nursing facilities reimbursed under Minnesota Statutes, chapter 256R, will receive a temporary rate add-on equal to $12.35 per resident day.

Summary

One of the three opportunities contained in the nursing facility funding bill is a temporary rate add-on equal to $12.35 per resident day. The legislature appropriated $36 million to fund the July 1, 2023–December 31, 2024, temporary rate add-on.

Implications

Nursing facilities are required to notify a private pay resident or person responsible for payment of the increase in writing 30 days before the increase takes effect, which is typically on January 1st (but is July 1 for this increase). The notice must include the amount of the rate increase, the new payment rate, and the date the rate increase takes effect.

While not specifically written in statute, the add-on is not to be offset.

Bill language

Chapter 74, Section 3: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/74/

Sec.

3.

NURSING FACILITY TEMPORARY RATE ADD-ON. Effective July 1, 2023, the commissioner of human services shall provide a temporary rate add-on for nursing facilities reimbursed under Minnesota Statutes, chapter 256R, in an amount equal to $12.35 per resident day. The rate addon under this section shall expire December 31, 2024.

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

Payments to nursing facilities not to exceed forecast

2023 Regular Session

SF3363/HF3342

Chapter 74, Section 2

Nursing facility funding bill

Effective: The day following final enactment

Short description

Nursing facilities will receive payments on August 1, 2023, and August 1, 2024. The payments will equal $225,000 plus an estimated $3,900 per nursing facility bed active on May 12, 2023, divided by two.

Summary

One of the three opportunities contained in the Nursing Facility Funding Bill is the payments to nursing facilities not to exceed the forecast. The legislature appropriated $173 million distributed to nursing facilities on August 1, 2023, and August 1, 2024.

The bill is very clear about the allowable uses of the payments. Allowable uses include the following:

• Covering operating- or property-related long-term debt payments

• Closing lines of credit

• Debt restructuring

• Paying off covenants or avoiding receivership as of the day following enactment

• Rent payments in arrears as of the day following enactment

• Physical plant improvements and maintenance not claimed for a rate increase

• Any other item deemed allowable by the commissioner

Likewise, the bill also states that the payments are not an applicable credit. There are additional requirements outlined by the bill First, each facility must expend the total payment amount by September 30, 2025. Second, payments to related organizations are prohibited. Minnesota Statutes 256R.02 Subd. 43. defines related organization as:

a. "Related organization" means a person that furnishes goods or services to a nursing facility and that is a close relative of a nursing facility, an affiliate of a nursing facility, a close relative of an affiliate of a nursing facility, or an affiliate of a close relative of an affiliate of a nursing facility. As used in this subdivision, paragraphs (b) to (e) apply.

b. "Affiliate" means a person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with another person.

c. "Person" means an individual, a corporation, a partnership, an association, a trust, an unincorporated organization, or a government or political subdivision.

d. "Close relative of an affiliate of a nursing facility" means an individual whose relationship by blood, marriage, or adoption to an individual who is an affiliate of a nursing facility is no more remote than first cousin.

e. "Control" including the terms "controlling," "controlled by," and "under common control with" means the possession, direct or indirect, of the power to direct or cause the direction of the management, operations, or policies of a person, whether through the ownership of voting securities, by contract, or otherwise.

Third, there are attestation and reporting requirements as well as audits and recoupments.

Finally, there is language regarding the payments to evaluate whether Minnesota spends more than the projections from the February 2023 forecast of state and federal Medicaid expenditures. The test is complicated and might lead to some form of settle-up in 2029.

Implications

It is expected that the Minnesota Department of Human Services will publish guidance prior to the first payment in August 2023. The legislature’s intention, as expressed by the defined allowable uses, is for this payment to help nursing facilities to regain their financial footing.

Bill language

Chapter 74, Section 2: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/74/

Sec. 2. PAYMENTS TO NURSING FACILITIES NOT TO EXCEED FORECAST SPENDING.

Subdivision 1. Payments established. The commissioner of human services shall provide a onetime payment to nursing facilities. For the purposes of this section, the payment is not an applicable credit as defined under Minnesota Statutes, section 256R.02, subdivision 6, and referenced in Minnesota Statutes, section 256R.10, subdivision 6.

Subd. 2. Payment amount. (a) Each nursing facility reimbursed under Minnesota Statutes, chapter 256R, must receive a payment based on the sum of clauses (1) and (2):

(1) $225,000; and

(2) the remainder of the appropriation divided by the total number of active nursing facility beds in Minnesota as of May 12, 2023, multiplied by the total number of active beds in the nursing facility as of May 12, 2023.

The total sum for each nursing facility shall be distributed in two equal payments on August 1, 2023, and August 1, 2024.

(b) The commissioner may adjust the amount in paragraph (a), clause (1), in order to expend the full amount of this appropriation.

(c) Each facility must expend the total payment amount by September 30, 2025.

Subd. 3. Allowable uses and attestation. To receive a payment, each nursing facility must attest on the forms and according to the timelines established by the commissioner that the payment will be used for the following nursing facility related operations:

(1) covering operating- or property-related long-term debt payments;

(2) closing lines of credit;

(3) debt restructuring;

(4) paying off covenants or avoiding receivership as of the day following enactment;

(5) rent payments in arrears as of the day following enactment;

(6) physical plant improvements and maintenance not claimed for a rate increase; and

(7) any other item deemed allowable by the commissioner.

Subd. 4. Payments to related organizations prohibited. A payment awarded under this section may not be used for payments to related organizations as defined in Minnesota Statutes, section 256R.02, subdivision 43.

Subd. 5. Reporting requirements. Each nursing facility shall report to the commissioner on the forms and according to the timelines established by the commissioner regarding uses of payments awarded under this section.

Subd. 6. Audits and recoupment. (a) The commissioner may perform an audit under this section up to six years after a payment is awarded to ensure that:

(1) the nursing facility used the money solely for allowable purposes under subdivision 3;

(2) the nursing facility was truthful when making attestations under subdivision 3; and

(3) the nursing facility complied with the conditions of receiving a payment under this section.

(b) If the commissioner determines that a nursing facility used the payment for purposes not authorized under this section, the commissioner must treat any amount used for a purpose not authorized under this section as an overpayment. The commissioner must recover any overpayment.

Subd. 7. Overspending relative to forecast. (a) The commissioner shall determine total projected medical assistance payments to nursing facilities in fiscal years 2024 to 2027 based on the February 2023 forecast plus the impact of the temporary rate add-on in section 3 and any subsequent rate adjustments in the 2024 legislative session.

(b) By December 31, 2028, the commissioner shall determine actual total medical assistance payments to nursing facilities for fiscal years 2024 to 2027. The determination of total actual medical assistance payments shall not include the appropriation for the payments under this section.

(c) The commissioner shall compare the amount in paragraph (a) to the amount in paragraph (b). If the amount in paragraph (a) exceeds the amount in paragraph (b), the payments in subdivision 2 shall be determined to have not increased medical assistance payments to nursing facilities. If the amount in paragraph (b) exceeds the amount in paragraph (a), the payments in subdivision 2 shall be determined to have increased medical assistance payments to nursing facilities and the commissioner shall adjust each nursing facility's rates in an amount proportional to the payment received by the nursing facility in subdivision 2 to reduce aggregate medical assistance payments to nursing facilities in rate year 2029 by an amount equal to the amount by which actual total medical assistance payments to nursing facilities for fiscal years 2024 to 2027, as determined in paragraph (b), exceeds the projected medical assistance payments to nursing facilities for fiscal years 2024 to 2027 based on the amount in paragraph (a).

(d) The commissioner's determinations under this subdivision are final and not subject to appeal.

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

Red Wing nursing facility receives special rate adjustment

2023 Regular Session

SF2934/HF2847

Chapter 61, Article 2, Section 11

Human Services omnibus bill

Effective: January 1, 2024

Short description

A nursing facility in Red Wing will receive a higher operating rate on January 1, 2024

Summary

Under Value-Based Reimbursement (VBR), a nursing facility’s operating rates are limited by the application of the care-related limit and the other operating price.

The Red Wing nursing facility’s operating rates will be the sum of its direct care costs per standardized day, its other care-related costs per resident day, and its other operating costs per day.

The special exception expires on June 30, 2025.

Bill language

Chapter 61, Article 2, Section 11: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

ASSISTED LIVING: PAYMENT

Adult Day Services increase to competitive workforce factor

2023 Regular Session

SF2934/HF2847

Chapter 61, Article 1, Section 36 Human Services omnibus bill

Effective: January 1, 2024, or upon federal approval, whichever is later

Short description

The competitive workforce factor used for Adult Day Services increased from 4.7% to 6.7%.

Summary

The calculation of service rates for Adult Day Services under the Disability Waiver Rate System (DWRS) utilizes a methodology similar to other DWRS services. Specifically, a series of calculations are performed to create components. The components along with the beneficiary’s needs are used to determine the payment for the service.

One of the key components is the base wage for the service. The competitive workforce factor is applied to the base wage.

Implications

The increase in the competitive workforce factor will result in an increase in Adult Day Service payments.

Bill language

Chapter 61, Article 1, Section 36: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

CADI & BI customized living rate increases

2023 Regular Session

SF2934/HF2847

Chapter 61, Article 1, Section 57

Human Services omnibus bill

Effective: January 1, 2024, or upon federal approval

Short description

Beginning on January 1, 2024, the customized living rates (including 24-hour) for the CADI and BI waiver beneficiaries will increase by 11-12% when the annual reassessment is performed.

Summary

The 2023 legislature, in particular, the House of Representatives, took a strong interest in implementing the 2017 Elderly Waiver (EW) rate system, which includes customized living services. Several years ago, the legislature and Minnesota Department of Human Services (DHS) decided to provide CADI and BI programs with a lesser phase-in than the EW customized living program.

Throughout the 2023 legislative session, the Long-Term Care Imperative’s proposal to fully phase-in the 2017 system and treat CADI and BI the same as EW held together. However, when the Human Services Conference Committee budget deal was made public, CADI and BI were again treated differently than EW.

Beginning January 1, 2024, Customized Living rates for CADI and BI will increase by 11%-12% according to a DHS estimate:

• as beneficiaries renew during the year; or

• begin receiving services during the year.

The increase is a result of blending 70.4% of the 2017 CADI/BI rates with 29.4% of the new Elderly Waiver system rates. The previous blend was 90% and 10%, respectively.

Implications

There are several implications regarding the increase to CADI and BI customized living rates:

• Unlike the increase to EW customized living rates, CADI and BI customized living providers do not need to create a distribution plan demonstrating that 80% of the increase is to be spent on staff compensation.

• The legislature chose to use the base values from 2018, rather than 2022. Had DHS used the 2023 values instead, a larger increase would have resulted.

• The rates are not recalculated every two years with updated wage values. This provision was dropped by the conference committee and means that future increases will need to be appropriated.

Bill language

Chapter 61, Article 1, Section 57: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

Sec. 57. Minnesota Statutes 2022, section 256S.2101, subdivision 1, is amended to read:

Subdivision 1. Phase-in for disability waiver customized living rates. All rates and rate components for community access for disability inclusion customized living and brain injury customized living under section 256B.4914 shall must be the sum of ten 29.6 percent of the rates calculated under sections 256S.211 to 256S.215 and 90 70.4 percent of the rates calculated using the rate methodology in effect as of June 30, 2017.

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

CADI & BI in Hennepin & Itasca

2023 Regular Session

SF2818/HF1403

Chapter 50, Article 1, Section 37

Human Services Policy omnibus bill

Effective: August 1, 2023

Short description

Requires the commissioner of human services to determine whether the BI or CADI waiver customized living and 24-hour customized living size limitation exception applies to two settings. One setting is located in the city of Minneapolis that had a capacity to serve six clients as of July 1, 2022; and one setting located in the city of Grand Rapids that had a capacity to serve eight clients as of July 1, 2022.

Summary

Over the past decade the Minnesota Department of Human Services (DHS) has crafted policies regarding the size, location, year opened, and age of clients served for customized living providers serving CADI and BI waiver clients. This has led to many providers finding their setting trapped within a web of complex and reactive policies, where serving a client becomes impossible due to any one of these policies.

Implications

The two settings listed in article 1 Section 37, presumably have had their size of setting interfere with providing CADI or BI customized living to waiver participant(s).

Care Providers of Minnesota will monitor the outcome of the determination as members may wish to seek similar language.

Bill language

Chapter 50, Article 1, Section 37: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/50/

Customized living monthly service rate limits

2023 Regular Session

HF1403/SF2818

Chapter 50, Article 1, Section 33 Human Services Policy omnibus bill

Effective: August 1, 2023

Short description

This article contains policy and technical changes related to various aging, disability, and behavioral health services.

Summary

Modifies the elderly waiver customized living monthly service rate limit by removing the subtraction of the maintenance needs allowance.

Bill language

Chapter 50, Article 1, Section 33: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/50/

Sec. 33. Minnesota Statutes 2022, section 256S.202, subdivision 1, is amended to read:

Subdivision 1. Customized living monthly service rate limits. (a) Except for a participant assigned to case mix classification L, as described in section 256S.18, subdivision 1, paragraph (b), the customized living monthly service rate limit shall not exceed 50 percent of the monthly case mix budget cap, less the maintenance needs allowance, adjusted at least annually in the manner described under section 256S.18, subdivisions 5 and 6.

(b) The customized living monthly service rate limit for participants assigned to case mix classification L must be the monthly service rate limit for participants assigned to case mix classification A, reduced by 25 percent.

Elderly Waiver rates to increase by an estimated 45% 2023 Regular Session

SF2934/HF2847

Chapter 61, Article 2, Sections 17 & 43

Human Services omnibus bill

Effective: January 1, 2024, or upon federal approval, whichever is later

Short description

Elderly Waiver rates, including customized living and 24-hour customized living, will increase by an average of 45% beginning on January 1, 2024, as annual reassessments are performed. Providers will need to create a distribution plan for spending 80% of the marginal increase on compensation costs for employees.

Summary

In 2017, the legislature adopted rate methodology developed by a Care Providers of Minnesota for certain rates used by the Elderly Waiver (EW) and EW customized living (CL), Community Access for Disability Inclusion (CADI) Customized Living (CL), EW foster care, Alternative Care (AC), and Essential Community Supports (ECS) programs. While 10% of the new system rates were blended with existing rates in 2018, the 2021 legislature further increased the blend to 18.8% of the new system rates methodology and 81.2% of the exiting rates for EW, EW-CL, AC, and ECS. The CADI and BI waiver programs were separated by the legislature (see article on Disability Waiver Rate Phase-In).

Two major changes were made by the conference committee:

• The 2018 base wage values are to be used as opposed to the 2023 values

• The rates will not be updated every two years; instead, future rate increases will require and appropriation by the legislature

The 2023 legislature adopted and funded the full implementation of the new system rates for EW, EWCL, AC, and ECS. According to the Minnesota Department of Human Services (DHS), the following service rates will increase by an estimated average of 45%

• Customized living rates

o Home management support

o Home care aide

o Home health aide

o Medication setups

• Community rates

o Chore services rate

o Companion services rate

o Homemaker assistance with personal care rate

o Homemaker cleaning rate

o Homemaker home management rate

o In-home respite care services rates

o Out-of-home respite care services rates

o Individual community living support rate

o Adult day services rate

o Adult day services bath rate

o Home-delivered meals rate

The bill requires providers to develop a distribution plan where 80% of the marginal increase in revenue for new compensation costs. The distribution plan must:

• be shared with DHS upon request;

• specify the amount of money to be received by the provider;

• specify how the new money will be used;

• be posted in an area with employee access and remain posted for six months; and

• include instructions for employees to contact DHS in case a compensation-related increase described in the plan is not received.

Implications

EW, EW-CL, AC, and ECS providers will see a significant increase to the service rates used to establish the monthly payments received beginning January 1, 2022, as clients are reassessed. Providers will also need to develop and post a distribution plan.

Bill language

Chapter 61, Article 2, Sections 17 & 43: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

Sec. 17. Minnesota Statutes 2022, section 256S.211, is amended to read:

256S.211 RATE SETTING; RATE ESTABLISHMENT UPDATING RATES; SPENDING REQUIREMENTS.

Subdivision 1. Establishing base wages. When establishing and updating the base wages according to section 256S.212, the commissioner shall use standard occupational classification (SOC) codes from the Bureau of Labor Statistics as defined in the edition of the Occupational Handbook published immediately prior to January 1, 2019, using Minnesota-specific wages taken from job descriptions.

Subd. 2. Establishing Updating rates. By January 1 of each year, On January 1, 2024, the commissioner shall establish factors, update component rates, and rates according to sections 256S.213 and 256S.212 to 256S.215, using base wages established according to section 256S.212 the data referenced in subdivision 1.

Subd. 3. Updating home-delivered meals rate. On January 1 of each year, the commissioner must update the home-delivered meals rate in section 256S.215, subdivision 15, by the percent increase in the nursing facility dietary per diem using the two most recently available nursing facility cost reports.

Subd. 4. Spending requirements. (a) Except for community access for disability inclusion customized living and brain injury customized living under section 256B.49, home-delivered meals, and designated disproportionate share facilities under section 256S.205, at least 80 percent of the marginal increase in revenue from the implementation of any rate adjustments under this section must be used to increase compensation-related costs for employees directly employed by the provider.

(b) For the purposes of this subdivision, compensation-related costs include:

(1) wages and salaries;

(2) the employer's share of FICA taxes, Medicare taxes, state and federal unemployment taxes, workers' compensation, and mileage reimbursement;

(3) the employer's paid share of health and dental insurance, life insurance, disability insurance, long-term care insurance, uniform allowance, pensions, and contributions to employee retirement accounts; and

(4) benefits that address direct support professional workforce needs above and beyond what employees were offered prior to the implementation of any rate adjustments under this section, including any concurrent or subsequent adjustments to the base wage indices.

(c) Compensation-related costs for persons employed in the central office of a corporation or entity that has an ownership interest in the provider or exercises control over the provider, or for persons paid by the provider under a management contract, do not count toward the 80 percent requirement under this subdivision.

(d) A provider agency or individual provider that receives additional revenue subject to the requirements of this subdivision shall prepare, and upon request submit to the commissioner, a distribution plan that specifies the amount of money the provider expects to receive that is subject to the requirements of this subdivision, including how that money was or will be distributed to increase compensation-related costs for employees. Within 60 days of final implementation of the new phase-in proportion or adjustment to the base wage indices subject to the requirements of this subdivision, the provider must post the distribution plan and leave it posted for a period of at least six months in an area of the provider's operation to which all employees have access. The posted distribution plan must include instructions regarding how to contact the commissioner, or the commissioner's representative, if an employee has not received the compensation-related increase described in the plan.

EFFECTIVE DATE. This section is effective January 1, 2024, or upon federal approval, whichever is later, except that subdivision 3 is effective July 1, 2023, or upon federal approval, whichever is later. The commissioner of human services shall notify the revisor of statutes when federal approval is obtained.

Sec. 43. REPEALER. (a) Minnesota Statutes 2022, section 256B.0917, subdivisions 1a, 6, 7a, and 13, are repealed.

(b) Minnesota Statutes 2022, sections 256S.19, subdivision 4; and 256S.2101, subdivision 2, are repealed.

EFFECTIVE DATE. Paragraph (a) is effective July 1, 2023. Paragraph (b) is effective January 1, 2024, or upon federal approval, whichever is later. The commissioner of human services shall notify the revisor of statutes when approval is obtained.

Evaluation of Elderly Waiver rate setting including provider cost report 2023 Regular Session

SF2934/HF2847

Chapter 61, Article 2, Section 16

Human Services omnibus bill

Effective: Evaluation of rates is effective January 1, 2024; Provider cost reporting is effective January 1, 2025

Short description

With the implementation of the Elderly Waiver (EW) rate system, the Minnesota Department of Human Services (DHS) will evaluate the inputs of the elderly waiver rate framework and provider costs every two years and submit a report to the legislature.

Summary

DHS is instructed to evaluate the EW rates and provider costs every two years. The evaluation will be broken out into rate setting elements and provider cost data.

Rate setting elements:

1. the base wage index;

2. the factors and supervision wage components; and

3. the formulas to calculate adjusted base wages and rates.

Provider cost data (at least once in any five-year period, a provider must submit cost data):

1. worker wage costs;

2. benefits paid;

3. supervisor wage costs;

4. executive wage costs;

5. vacation, sick, and training time paid;

6. taxes, workers' compensation, and unemployment insurance costs paid;

7. administrative costs paid;

8. program costs paid;

9. transportation costs paid;

10. vacancy rates; and

11. other data relating to costs required to provide services requested by the commissioner

Implications

Elderly Waiver providers, including customized living and 24-hour customized living, are now required to submit cost report data at least once every five years

DHS will temporarily suspend payments to the provider if cost data is not received 90 days after the required submission date.

Bill language

Chapter 61, Article 2, Section 16: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

Overpayments to CADI & BI customized living providers

2023 Regular Session

SF2934/HF2847

Chapter 61, Article 1, Section 83 Human Services omnibus bill

Effective: July 1, 2023

Short description

Providers of CADI and BI customized living who ran afoul with the age restrictions for customized living services delivered between January 11, 2021, and July 1, 2023, will not have these payments recovered by the Minnesota Department of Human Services (DHS).

Summary

On January 11, 2021, DHS implemented new standards for the provision of CADI and BI customized living. Specifically, CL or 24-hour CL settings that were developed and operational on or after January 11, 2021, may only serve people ages 55 and older.

Unfortunately, counties, case managers, and providers were challenged by the new requirement. Despite the new standard, counties and case managers placed people under the age of 55 at settings that opened after January 11, 2021.

According to the bill, the state must not sanction providers for receipt of these ineligible payments or otherwise seek recovery of these payments.

The legislature also directs DHS to update guidance and communicate with lead agencies and customized living service providers to ensure that lead agencies and providers understand the requirements for medical assistance disability waiver customized living service payments.

Implications

There are two important implications of the language:

First, DHS should not recoup payments made between January 11, 2021, and July 1, 2023, to providers that opened after January 11, 2021 and provided customized living services to people under the age 55

Second, CADI and BI customized living providers that opened after January 11, 2021, must develop processes to ensure that Medicaid beneficiaries under the age of 55 are not admitted to their settings.

Bill language

Chapter 61, Article 1, Section 83: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

Program for All-Inclusive Care for the Elderly (PACE) study funded

2023 Regular Session

SF2934/HF2847

Chapter 61, Article 2, Section 37

Human Services omnibus bill

Effective: August 1, 2023

Short description

The Minnesota Department of Human Services (DHS) is directed to develop recommendations for a funding mechanism for the Program for All-Inclusive Care for the Elderly (PACE).

Summary

The Program of All-Inclusive Care for the Elderly (PACE) provides comprehensive medical and social services to certain frail, elderly people (participants) still living in the community. Most of the participants who are in PACE are dually eligible for both Medicare and Medicaid. PACE providers receive monthly Medicare and Medicaid capitation payments for each enrollee. Medicare enrollees who are not eligible for Medicaid pay monthly premiums equal to the Medicaid capitation amount, but no deductibles, coinsurance, or any other type of Medicare or Medicaid cost-sharing.

Implications

Care Providers of Minnesota will monitor the DHS study and participate in any public work groups. If PACE is authorized for Minnesota and the numbers from the study are actuarially sound, members may want to consider developing the model.

Bill language

Chapter 61, Article 2, Section 37: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

Sec. 37. DIRECTION TO COMMISSIONER; FUTURE PACE IMPLEMENTATION FUNDING.

(a) The commissioner of human services shall work collaboratively with stakeholders to undertake an actuarial analysis of Medicaid costs for nursing home eligible beneficiaries for the purposes of establishing a monthly Medicaid capitation rate for the program of all-inclusive care for the elderly (PACE). The analysis must include all sources of state Medicaid expenditures for nursing home eligible beneficiaries, including but not limited to capitation payments to plans and additional state expenditures to skilled nursing facilities consistent with Code of Federal Regulations, chapter 42, part 447, and long-term care costs.

(b) The commissioner shall also estimate the administrative costs associated with implementing and monitoring PACE.

(c) The commissioner shall provide a report to the chairs and ranking minority members of the legislative committees with jurisdiction over health care finance on the actuarial analysis, proposed capitation rate, and estimated administrative costs by March 1, 2024. The commissioner shall recommend a financing mechanism and administrative framework by September 1, 2024.

(d) By September 1, 2024, the commissioner shall inform the chairs and ranking minority members of the legislative committees with jurisdiction over health care finance on the commissioner's progress toward developing a recommended financing mechanism. For purposes of this section, the commissioner may issue or extend a request for proposal to an outside vendor.

Rate increase for home delivered meals, chore services

2023 Regular Session

SF2934/HF2847

Chapter 61, Article 1, Section 71 Human Services omnibus bill

Effective: January 1, 2024, or upon federal approval, whichever is later

Short description

Increases the payment rates for chore services and home delivered meals provided under the Developmental Disabilities (DD) and Community Access for Disability Inclusion (CADI) waiver programs.

Summary

The House Human Services Committee brought many different waiver rate increases into the conference committee. The January 1, 2024, increase of 14.99% for the DD and CADI waiver payment rates for chore and home delivered meals was just one of many that were adopted.

Implications

These rates will increase on January 1, 2024. It is not known if these rates will increase across the board on January 1 or as Medicaid beneficiaries annually reassessed.

Bill language

Chapter 61, Article 1, Section 71: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

Sec. 71. RATE INCREASE FOR CERTAIN DISABILITY WAIVER SERVICES.

The commissioner of human services shall increase payment rates for chore services and homedelivered meals provided under Minnesota Statutes, sections 256B.092 and 256B.49, by 14.99 percent from the rates in effect on December 31, 2023.

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

Rate increase for specific home- & community-based services

2023 Regular Session

SF2934/HF2847

Chapter 61, Article 2, Section 40 Human Services Omnibus Bill

Effective: January 1, 2024, or upon federal approval, whichever is later

Short description

A 14.99% increase to the community living assistance and family caregiver service rates used by the Elderly Waiver (EW), Alternative Care (AC), and Essential Community Supports (ECS) programs.

Summary

The House Human Services Committee brought many different waiver rate increases into the conference committee. The January 1, 2024, increase of 14.99% increase to the community living assistance and family caregiver service rates was just one of many that were adopted.

Implications

These rates will increase on January 1, 2024. It is not known if these rates will increase across the board on January 1 or as Medicaid beneficiaries annually reassessed.

Bill language

Chapter 61, Article 2, Section 40: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

Sec. 40. RATE INCREASE FOR CERTAIN HOME AND COMMUNITY-BASED SERVICES.

The commissioner of human services shall increase payment rates for community living assistance and family caregiver services under Minnesota Statutes, sections 256B.0913 and 256B.0922, and chapter 256S by 14.99 percent from the rates in effect on December 31, 2023.

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

Refinements made to Elderly Waiver rate system

2023 Regular Session

SF2934/HF2847

Chapter 61, Article 2, Sections 18-34

Human Services omnibus bill

Effective: January 1, 2024, or upon federal approval, whichever is later

Short description

Changes recommended by the 2018 study on Elderly Waiver (EW) were adopted.

Summary

When the new EW rate system was adopted in 2017, the legislature also included funding for a study of the definitions, provider costs, and how the new rates compare to provider costs.

The November 27, 2018, report, “Evaluation of Rate Methodologies for Elderly Waiver and Related Programs,” was prepared by Navigant for the Minnesota Department of Human Services. The report provided numerous recommendations for aligning rates with labor used, calculating program add-ons, and reworking some of the methodologies.

These recommendations were adopted by the 2023 legislature.

Implications

The rate methodology used for Elderly Waiver, Alternative Care, and Essential Community Supports, while complicated, is intended to address the various costs of providing services.

Care Providers of Minnesota will estimate the January 1, 2024, rates and provide an overview of how the four rates used for EW customized living and 24-hour customized living are calculated This work will be provided at a later date.

• Home management support

• Home care aide

• Home health aide

• Medication setups

Bill language

Chapter 61, Article 2, Sections 18-34: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

Temporary grant available for smaller providers of customized living

2023 Regular Session

SF2934/HF2847

Chapter 61, Article 1, Section 75 Human Services omnibus bill

Effective: July 1, 2023

Short description

Small, customized living settings, community residential service and integrated community support providers may be eligible for grants up to $50,000 per setting.

Summary

The 2021 implementation of the assisted living law and changes to the Minnesota Department of Human Services (DHS) policy toward CADI and BI customized living has created challenges for many small providers. Two types of small providers are eligible for up to $50,000 in grant funding:

1. Customized living settings that are located in a single-family home and serve six or fewer people

2. Community residential service providers and integrated community supports providers who transitioned from providing customized living or 24-hour customized living on or after June 30, 2021

Uses of grant money include the following:

• Physical plant updates required for community residential services or integrated community supports licensure

• Technical assistance to adapt business models and meet policy and regulatory guidance

• Other uses approved by the commissioner

Allowable uses of grant money also include reimbursement for eligible costs incurred by a community residential service provider or integrated community supports provider directly related to the provider's transition from providing customized living or 24-hour customized living.

Implications

DHS will issue a request for proposal (RFP) and/or grant application. Interested providers must submit an application by June 30, 2024

Care Providers of Minnesota will communicate the issuance of the RFP and/or grant application to members as soon as DHS publishes.

Bill language

Chapter 61, Article 1, Section 75: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

MEDICAID RENEWALS

Medicaid renewals

2023 Regular Session

HF2286/SF2265

Chapter 22

Effective: Day following final enactment (March 30, 2023), or upon federal approval, whichever is later

Short description

The bill modifies Medicaid eligibility and renewal policy and provides funding to support the renewal of Medicaid beneficiaries due to the end of the public health emergency (PHE).

Summary

In March 2020, federal COVID-19 legislation established the “continuous enrollment condition,” which gave states extra federal Medicaid funding in exchange for maintaining enrollment for all individuals, even if they are no longer eligible, through the end of the month that the federal COVID-19 PHE ends.

With the conclusion of the PHE, states have resumed normal operations, including restarting full Medicaid and CHIP eligibility renewals and ending coverage of ineligible enrollees a year-long process known as “unwinding.” Minnesota’s first monthly renewal cohort will be July 2023 and the last cohort will be May 2024.

Due to the heavy burden on the state workforce and existing processes and the increased risk that individuals may lose health coverage; states were required to submit to the Centers for Medicare & Medicaid Services (CMS) a plan for dealing with a significant volume of pending renewals and other required actions.

HF2286/SF2265, in part, remedies issues with Minnesota’s plan that were identified by CMS and contains multiple supports, including funding, for the transition from continuous coverage policies to standard eligibility policies and procedures

• Provides $36 million for county and tribal processing agencies to resume MA renewals during the unwinding

• Provides additional funding for navigators and DHS during the unwinding

• Suspends periodic data matching (PDM) for METS cases during the unwinding period

• Provides the commissioner flexibility to adjust eligibility verification policies to comply with federal guidance and ensure a timely renewal process during the unwinding period

• Maintains coverage until the MA enrollee’s first renewal during the unwinding period

• Disregards excess assets for MA enrollees who have an asset limit until their second annual renewal

• Cancels unpaid premiums accrued during the pandemic for MA for Employed Persons with Disabilities (MA-EPD) and MinnesotaCare enrollees

• Waives MinnesotaCare premiums for all enrollees from May 2023–June 2024

• Suspends procedural terminations for MA enrollees

• Extends timelines for appeal fair hearing decisions, provides additional protections for enrollees regarding fair hearing requests, no overpayments for benefits continued during appeal

Implications

The first renewal cohort is July 2023. Members should create a list of Medicaid beneficiaries and determine their renewal month.

Bill language

Chapter 22: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/22/

ASSISTED LIVING: HOME CARE

Follow-up surveys

2023 Regular Session

SF2995/HF2930

Chapter 70, Article 3, Section 33

Health omnibus bill

Effective: August 1, 2023

Short description

Removes the requirement for MDH to conduct a follow-up survey (resurvey) based on licensing orders issues at a “widespread” finding.

Implications

Home care providers who are issued a licensing order at a “widespread” level may not receive a followup survey based on the widespread finding.

Bill language

Chapter 70, Article 3, Section 33: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/70/

Process for home care surveys

2023 Regular Session

SF2995/HF2930

Chapter 70, Article 3, Section 32

Health omnibus bill

Effective: August 1, 2023

Short description

Removes references to housing with services replaces with “establishment.” Clarifies the survey exit conference must be completed within one business day after the completion of a survey and may not be in a written format.

Implications

Removes an outdated reference, permits survey exit conferences to be after the survey ends, but within one business day, and permits the exit conferences to be verbal.

Bill language

Chapter 70, Article 3, Section 32: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/70/

Survey reconsiderations

2023 Regular Session

SF2995/HF2930

Chapter 70, Article 3, Section 34

Health omnibus bill

Effective: August 1, 2023

Short description

Modifies the timeframe to send in a request for a licensing order reconsideration from 15 calendar days to 15 business days from the date the survey results were received.

Implications

If a home care providers desires to request a reconsideration, it now has 15 M-F days (plus any holiday the government has off) to submit the request, rather than 15 consecutive calendar days.

Bill language

Chapter 70, Article 3, Section 34: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/70/

Termination of service plan

2023 Regular Session

SF2995/HF2930

Chapter 70, Article 3, Section 35

Health omnibus bill

Effective: August 1, 2023

Short description

Adds a requirement to the written notice of termination to include a statement that the client may contact the Office of Ombudsman for Long-Term Care to request an advocate to assist regarding the termination and contact information for the office, including the office's central telephone number Removes reference to housing with services and replaces it with “any housing contract.”

Implications

Adds a new required element to a home care termination notice and removes an outdated reference.

Bill language

Chapter 70, Article 3, Section 35: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/70/

ASSISTED LIVING: LICENSURE

Fines & penalties

2023 Regular Session

SF2995/HF2930

Chapter 70, Article 4, Sections 47-49

Health omnibus bill

Effective: August 1, 2023

Short description

Streamlined language used related to fines and penalties and clarified how fines and penalties will be handled.

Bill language

Chapter 70, Article 4, Sections 47-49: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/70/

Sec. 47. Minnesota Statutes 2022, section 144G.16, subdivision 7, is amended to read:

Subd. 7. Fines and penalties. (a) The fee fine for failure to comply with the notification requirements in section 144G.52, subdivision 7, is $1,000.

(b) Fines and penalties collected under this section shall be deposited in a dedicated special revenue account. On an annual basis, the balance in the special revenue account shall be appropriated to the commissioner to implement the recommendations of the advisory council established in section 144A.4799.

Sec. 48. Minnesota Statutes 2022, section 144G.18, is amended to read:

144G.18 NOTIFICATION OF CHANGES IN INFORMATION.

Subdivision 1. Notification. A provisional licensee or licensee shall notify the commissioner in writing prior to a change in the manager or authorized agent and within 60 calendar days after any change in the information required in section 144G.12, subdivision 1, clause (1), (3), (4), (17), or (18).

Subd. 2. Fines and penalties. (a) The fine for failure to comply with the notification requirements of this section is $1,000.

(b) Fines and penalties collected under this subdivision shall be deposited in a dedicated special revenue account. On an annual basis, the balance in the special revenue account shall be appropriated to the commissioner to implement the recommendations of the advisory council established in section 144A.4799.

Sec. 49. Minnesota Statutes 2022, section 144G.57, subdivision 8, is amended to read:

Subd. 8. Fine Fines and penalties. (a) The commissioner may impose a fine for failure to follow the requirements of this section.

(b) The fine for failure to comply with this section is $1,000.

(c) Fines and penalties collected under this section shall be deposited in a dedicated special revenue account. On an annual basis, the balance in the special revenue account shall be appropriated to the commissioner to implement the recommendations of the advisory council established in section 144A.4799.

Reporting changes denials, reconsiderations, correction orders

2023 Regular Session

SF2995/HF2930

Chapter 70, Article 8, Section 2

Health omnibus bill

Effective: January 1, 2025

Short description

Permits the commissioner to withhold payments to a provider, vendor, individual, associated individual, or associated entity if there is credible evidence of fraud while an investigation is pending. Provides contested case hearing rights. In addition, expands the commissioner’s powers and authorities to exclude a provider, vendor, or individual from programs receiving public funds.

Implications

Permits the withholding of public funds to an individual or provider while fraud is being investigated, and increases options to prohibit an individual or provider from participating in publicly funded programs.

Bill language

Chapter 70, Article 8, Section 2: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/70/

245.095 LIMITS ON RECEIVING PUBLIC FUNDS.

Subdivision 1. Prohibition. (a) If a provider, vendor, or individual enrolled, licensed, receiving funds under a grant contract, or registered in any program administered by the commissioner, including under the commissioner's powers and authorities in section 256.01, is excluded from that program, the commissioner shall:

(1) prohibit the excluded provider, vendor, or individual from enrolling, becoming licensed, receiving grant funds, or registering in any other program administered by the commissioner; and

(2) disenroll, revoke or suspend a license, disqualify, or debar the excluded provider, vendor, or individual in any other program administered by the commissioner.

(b) If a provider, vendor, or individual enrolled, licensed, receiving funds under a grant contract, or registered in any program administered by the commissioner, including under the commissioner's powers and authorities in section 256.01, is excluded from that program, the commissioner may:

(1) prohibit any associated entities or associated individuals from enrolling, becoming licensed, receiving grant funds, or registering in any other program administered by the commissioner; and

(2) disenroll, revoke or suspend a license of, disqualify, or debar any associated entities or associated individuals in any other program administered by the commissioner.

(c) If a provider, vendor, or individual enrolled, licensed, or otherwise receiving funds under any contract or registered in any program administered by a Minnesota state or federal agency is excluded from that program, the commissioner of human services may:

(1) prohibit the excluded provider, vendor, individual, or any associated entities or associated individuals from enrolling, becoming licensed, receiving grant funds, or registering in any program administered by the commissioner; and

(2) disenroll, revoke or suspend a license of, disqualify, or debar the excluded provider, vendor, individual, or any associated entities or associated individuals in any program administered by the commissioner.

(b) (d) The duration of this a prohibition, disenrollment, revocation, suspension, disqualification, or debarment under paragraph (a) must last for the longest applicable sanction or disqualifying period in effect for the provider, vendor, or individual permitted by state or federal law. The duration of a prohibition, disenrollment, revocation, suspension, disqualification, or debarment under paragraphs (b) and (c) may last until up to the longest applicable sanction or disqualifying period in effect for the provider, vendor, individual, associated entity, or associated individual as permitted by state or federal law.

Subd. 2. Definitions. (a) For purposes of this section, the following definitions have the meanings given them.

(b) "Associated entity" means a provider or vendor owned or controlled by an excluded individual.

(c) "Associated individual" means an individual or entity that has a relationship with the business or its owners or controlling individuals, such that the individual or entity would have knowledge of the financial practices of the program in question.

(b) (d) "Excluded" means disenrolled, disqualified, having a license that has been revoked or suspended under chapter 245A, or debarred or suspended under Minnesota Rules, part 1230.1150, or excluded pursuant to section 256B.064, subdivision 3 removed under other authorities from a program administered by a Minnesota state or federal agency, including a final determination to stop payments.

(c) (e) "Individual" means a natural person providing products or services as a provider or vendor.

(d) (f) "Provider" includes any entity or individual receiving payment from a program administered by the Department of Human Services, and an owner, controlling individual, license holder, director, or managerial official of an entity receiving payment from a program administered by the Department of Human Services means any entity, individual, owner, controlling individual, license holder, director, or managerial official of an entity receiving payment from a program administered by a Minnesota state or federal agency.

Subd. 3. Notice. Within five days of taking an action under subdivision (1), paragraph (a), (b), or (c), against a provider, vendor, individual, associated individual, or associated entity, the commissioner must send notice of the action to the provider, vendor, individual, associated individual, or associated entity. The notice must state:

(1) the basis for the action;

(2) the effective date of the action;

(3) the right to appeal the action; and

(4) the requirements and procedures for reinstatement.

Subd. 4. Appeal. Upon receipt of a notice under subdivision 3, a provider, vendor, individual, associated individual, or associated entity may request a contested case hearing, as defined in section 14.02, subdivision 3, by filing with the commissioner a written request of appeal. The scope of any contested case hearing is solely limited to action taken under this section. The commissioner must receive the appeal request no later than 30 days after the date the notice was mailed to the provider, vendor, individual, associated individual, or associated entity. The appeal request must specify:

(1) each disputed item and the reason for the dispute;

(2) the authority in statute or rule upon which the provider, vendor, individual, associated individual, or associated entity relies for each disputed item;

(3) the name and address of the person or entity with whom contacts may be made regarding the appeal; and

(4) any other information required by the commissioner.

Subd. 5. Withholding of payments. (a) Except as otherwise provided by state or federal law, the commissioner may withhold payments to a provider, vendor, individual, associated individual, or associated entity in any program administered by the commissioner if the commissioner determines there is a credible allegation of fraud for which an investigation is pending for a program administered by a Minnesota state or federal agency.

(b) For purposes of this subdivision, "credible allegation of fraud" means an allegation that has been verified by the commissioner from any source, including but not limited to:

(1) fraud hotline complaints;

(2) claims data mining;

(3) patterns identified through provider audits, civil false claims cases, and law enforcement investigations; and

(4) court filings and other legal documents, including but not limited to police reports, complaints, indictments, informations, affidavits, declarations, and search warrants.

(c) The commissioner must send notice of the withholding of payments within five days of taking such action. The notice must:

(1) state that payments are being withheld according to this subdivision;

(2) set forth the general allegations related to the withholding action, except the notice need not disclose specific information concerning an ongoing investigation;

(3) state that the withholding is for a temporary period and cite the circumstances under which the withholding will be terminated; and

(4) inform the provider, vendor, individual, associated individual, or associated entity of the right to submit written evidence to contest the withholding action for consideration by the commissioner.

(d) If the commissioner withholds payments under this subdivision, the provider, vendor, individual, associated individual, or associated entity has a right to request administrative reconsideration. A request for administrative reconsideration must be made in writing, state with specificity the reasons the payment withholding decision is in error, and include documents to support the request. Within 60 days from receipt of the request, the commissioner shall judiciously review allegations, facts, evidence available to the commissioner, and information submitted by the provider, vendor, individual, associated individual, or associated entity to determine whether the payment withholding should remain in place.

(e) The commissioner shall stop withholding payments if the commissioner determines there is insufficient evidence of fraud by the provider, vendor, individual, associated individual, or associated entity or when legal proceedings relating to the alleged fraud are completed, unless the commissioner has sent notice under subdivision 3 to the provider, vendor, individual, associated individual, or associated entity.

(f) The withholding of payments is a temporary action and is not subject to appeal under section 256.045 or chapter 14.

Small provider regulatory relief

2023 Regular Session

SF2934/HF2847

Chapter 61, Article 2, Section 39

Human Services omnibus bill

Effective: August 1, 2023

Short description

Requires the commissioner of human services to consult with small providers who provide customized living to develop recommendations to reduce the regulatory burdens on these providers.

Summary

With the implementation of the new assisted living licensure that went into effect August 1, 2021, small providers have had challenges with implementing all the regulatory requirements in these settings. An assisted living workgroup has been developed and tasked to develop recommended solutions to reduce the regulatory burdens on these providers to mitigate closures. Consensus of legislative proposals are to be prepared by mid-autumn (October) 2023 for consideration during the 2024 legislative session.

Bill language

Chapter 61, Article 2, Section 39 : https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

Sec. 39. DIRECTION TO COMMISSIONERS; SMALL PROVIDER REGULATORY RELIEF.

The commissioners of human services and health must consult with assisted living facility license holders who provide customized living and whose facilities are smaller than 11 beds to compile a list of regulatory requirements, compliance with which is particularly difficult for small providers. The commissioners must provide the chairs and ranking minority members of the legislative committees with jurisdiction over assisted living licensure and customized living with recommendations, including draft legislation, to reduce the regulatory burden on small providers.

HOUSING: LANDLORD/TENANT

Early renewal on a lease

2023 Regular Session

SF2909/HF2890

Chapter 52, Article 19, Section 98

Judiciary and Public Safety omnibus bill

Effective: January 1, 2024, and apply to leases entered into or renewed on or after January 1, 2024

Short description

Prohibits requiring a rental renewal until six months into a lease, if the lease is longer than 10 months.

Implications

If your leases are longer than 10 months, you must wait until six months from the expiration of the current lease before requiring a tenant to renew the lease.

Bill language

Chapter 52, Article 19, Section 98 : https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/52/

Sec. 98. [504B.144] EARLY RENEWAL OF LEASE. A landlord must wait until six months from the expiration of the current lease before requiring a tenant to renew the lease, if the lease is for a period of time longer than ten months. Nothing prevents a landlord from waiting until closer to the expiration of a lease to ask a tenant to renew the lease. Any provision, whether oral or written, of any lease or other agreement whereby any provision of this section is waived by a tenant is contrary to public policy and void.

Emergency tenant remedy actions

2023 Regular Session

SF2909/HF2890

Chapter 52, Article 19, Sections 93-95

Judiciary and Public Safety omnibus bill

Effective: January 1, 2024, and where applicable, apply to petitions filed on or after that date

Short description

Alters the manner in which a petitioner can provide notice and start the process for emergency tenant remedies actions and changes the manner courts charge for filing fees.

Bill language

Chapter 52, Article 19, Sections 93-95: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/52/

Sec. 93. Minnesota Statutes 2022, section 504B.381, subdivision 1, is amended to read: Subdivision 1. Petition. A person authorized to bring an action under section 504B.395, subdivision 1, may petition the court for relief in cases of emergency involving the loss of running water, hot water, heat, electricity, sanitary facilities, or other essential services or facilities that the landlord is responsible for providing.:

(1) when a unit of government has revoked a rental license, issued a condemnation order, issued a notice of intent to condemn, or otherwise deemed the property uninhabitable; or

(2) in cases of emergency involving the following services and facilities when the landlord is responsible for providing them:

(i) a serious infestation;

(ii) the loss of running water;

(iii) the loss of hot water;

(iv) the loss of heat;

(v) the loss of electricity;

(vi) the loss of sanitary facilities;

(vii) a nonfunctioning refrigerator;

(viii) if included in the lease, a nonfunctioning air conditioner;

(iv) if included in the lease, no functioning elevator;

(x) any conditions, services, or facilities that pose a serious and negative impact on health or safety; or

(xi) other essential services or facilities.

Sec. 94. Minnesota Statutes 2022, section 504B.381, subdivision 5, is amended to read:

Subd. 5. Relief; service of petition and order. Provided proof that the petitioner has given the notice required in subdivision 4 to the landlord, if the court finds based on the petitioner's emergency ex parte motion for relief, affidavit, and other evidence presented that the landlord violated subdivision 1, then the court shall order that the landlord immediately begin to remedy the violation and may order relief as provided in section 504B.425. The court and petitioner shall serve the petition and order on the landlord personally or by mail as soon as practicable. The court shall include notice of a hearing and, at the hearing, shall consider evidence of alleged violations, defenses, compliance with the order, and any additional relief available under section 504B.425. The court and petitioner shall serve the notice of hearing on the ex parte petition and emergency order personally or by mail as soon as practicable.

Sec. 95. Minnesota Statutes 2022, section 504B.381, is amended by adding a subdivision to read:

Subd. 8. Filing fee. The court administrator may charge a filing fee in the amount set for complaints and counterclaims in conciliation court, subject to the filing of an inability to pay affidavit.

Entry by landlord

2023 Regular Session

SF2909/HF2890

Chapter 52, Article 19, Sections 87-88

Judiciary and Public Safety omnibus bill

Effective: January 1, 2024, and where applicable, apply to leases filed on or after that date

Short description

Changes the specifics on the entry by a landlord and the penalties imposed if violated.

Bill language

Chapter 52 https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/52/

Sec. 87. Minnesota Statutes 2022, section 504B.211, subdivision 2, is amended to read:

Subd. 2. Entry by landlord. Except as provided in subdivision 4, a landlord may enter the premises rented by a residential tenant only for a reasonable business purpose and after making a good faith effort to give the residential tenant reasonable notice under the circumstances of not less than 24 hours in advance of the intent to enter. A residential tenant may permit a landlord to enter the rented premises with less than 24 hours notice if desired. The notice must specify a time or anticipated window of time of entry and the landlord may only enter between the hours of 8:00 a.m. and 8:00 p.m. unless the landlord and tenant agree to an earlier or later time. A residential tenant may not waive and the landlord may not require the residential tenant to waive the residential tenant's right to prior notice of entry under this section as a condition of entering into or maintaining the lease.

Sec. 88. Minnesota Statutes 2022, section 504B.211, subdivision 6, is amended to read:

Subd. 6. Penalty. If a landlord substantially violates subdivision 2 this section, the residential tenant is entitled to a penalty which may include a rent reduction up to full rescission of the lease, recovery of any damage deposit less any amount retained under section 504B.178, and up to a $100 $500 civil penalty for each violation. If a landlord violates subdivision 5, the residential tenant is entitled to up to a $100 civil penalty for each violation and reasonable attorney fees. A residential tenant shall may follow the procedures in sections 504B.381, 504B.385, and 504B.395 to 504B.471 to enforce the provisions of this section. A violation of this section by the landlord is a violation of section 504B.161.

Fourteen-day notice

2023 Regular Session

SF2909/HF2890

Chapter 52, Article 19, Section 97

Judiciary and Public Safety omnibus bill

Effective: January 1, 2024, and apply to leases entered into or renewed on or after January 1, 2024

Short description

Removes the ability of the landlord to terminate the tenancy by giving 14 days’ notice to quit if the tenant neglects or refuses to pay rent due. Instead, you must provide at least the time between the rent is due, or three months, whichever is less.

Implications

If terminating a tenancy at will, you will no longer be able to terminate on 14 days’ notice if the tenant neglects or refuses to pay.

Bill language

Chapter 52, Article 19, Section 97: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/52/

Sec. 97. Minnesota Statutes 2022, section 504B.135, is amended to read: 504B.135 TERMINATING TENANCY AT WILL.

(a) A tenancy at will may be terminated by either party by giving notice in writing. The time of the notice must be at least as long as the interval between the time rent is due or three months, whichever is less.

(b) If a tenant neglects or refuses to pay rent due on a tenancy at will, the landlord may terminate the tenancy by giving the tenant 14 days notice to quit in writing.

Heating/minimum temperature requirements

2023 Regular Session

SF2909/HF2890

Chapter 52, Article 19, Section 91

Judiciary and Public Safety omnibus bill

Effective: January 1, 2024, and where applicable, apply to petitions filed on or after that date

Short description

Requires the premises to supply or furnish heat at a minimum temperature of 68 degrees Fahrenheit from October 1 through April 30, unless a utility company requires and instructs the heat to be reduced.

Bill language

Chapter 52, Article 19, Section 91: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/52/

Sec. 91. Minnesota Statutes 2022, section 504B.161, subdivision 1, is amended to read:

Subdivision 1. Requirements. (a) In every lease or license of residential premises, the landlord or licensor covenants:

(1) that the premises and all common areas are fit for the use intended by the parties;

(2) to keep the premises in reasonable repair during the term of the lease or license, except when the disrepair has been caused by the willful, malicious, or irresponsible conduct of the tenant or licensee or a person under the direction or control of the tenant or licensee;

(3) to make the premises reasonably energy efficient by installing weatherstripping, caulking, storm windows, and storm doors when any such measure will result in energy procurement cost savings, based on current and projected average residential energy costs in Minnesota, that will exceed the cost of implementing that measure, including interest, amortized over the ten-year period following the incurring of the cost; and

(4) to maintain the premises in compliance with the applicable health and safety laws of the state, and of the local units of government where the premises are located during the term of the lease or license, except when violation of the health and safety laws has been caused by the willful, malicious, or irresponsible conduct of the tenant or licensee or a person under the direction or control of the tenant or licensee.; and

(5) to supply or furnish heat at a minimum temperature of 68 degrees Fahrenheit from October 1 through April 30, unless a utility company requires and instructs the heat to be reduced.

(b) The parties to a lease or license of residential premises may not waive or modify the covenants imposed by this section.

Infirmity of tenant

2023 Regular Session

SF2909/HF2890

Chapter 52, Article 19, Section 101

Judiciary and Public Safety omnibus bill

Effective: January 1, 2024, and applies to leases entered into or renewed on or after January 1, 2024

Short description

A tenant or the authorized representative of the tenant may terminate the lease prior to the expiration of the lease if the tenant has or if there is more than one tenant, all the tenants have been found by a medical professional to need to move into a medical care facility and:

1. require assistance with instrumental activities of daily living or personal activities of daily living due to medical reasons or a disability;

2. meet one of the nursing facility level of care criteria under section 144.0724, subdivision 11; or

3. have a disability or functional impairment in three or more of the areas listed in section 245.462, subdivision 11a, so that self-sufficiency is markedly reduced because of a mental illness.

When a tenant requires an accessible unit as defined in section 363A.40, subdivision 1, and the landlord can provide an accessible unit in the same complex where the tenant currently resides that is available within two months of the request, then the provisions of this section do not apply and the tenant may not terminate the lease. When these conditions have been met, the tenant or tenants authorized representative may terminate the lease by providing at least two months’ written notice to be effective the last day of a calendar month.

Implications

We have inquired with legislators and the Department of Health the implications for those already in an assisted living, needing the services.

Bill language

Chapter 52, Article 19, Section 101: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/52/

Sec. 101. [504B.266] TERMINATION OF LEASE UPON INFIRMITY OF TENANT.

Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have the meanings given them.

(b) "Authorized representative" means a person acting as an attorney-in-fact under a power of attorney under section 523.24 or a court-appointed conservator or guardian under chapter 524.

(c) "Disability" means any condition or characteristic that is a physical, sensory, or mental impairment that materially limits at least one major life activity.

(d) "Medical care facility" means:

(1) a nursing home, as defined in section 144A.01, subdivision 5;

(2) hospice care, as defined in section 144A.75, subdivision 8;

(3) residential hospice facility, as defined in section 144A.75, subdivision 13;

(4) boarding care home, as licensed under chapter 144 and regulated by the Department of Health under Minnesota Rules, chapter 4655;

(5) supervised living facility, as licensed under chapter 144;

(6) a facility providing assisted living, as defined in section 144G.08, subdivision 7;

(7) an accessible unit, as defined in section 363A.40, subdivision 1, paragraph (b);

(8) a state facility as defined in section 246.50, subdivision 3;

(9) a facility providing a foster care for adults program as defined in section 245A.02, subdivision 6c; or

(10) a facility providing intensive residential treatment services as defined in section 245I.23.

(e) "Medical professional" means:

(1) a physician who is currently licensed to practice medicine under section 147.02, subdivision 1;

(2) an advanced practice registered nurse, as defined in section 148.171, subdivision 3; or

(3) a mental health professional as defined in section 245I.04, subdivision 2.

Subd. 2. Termination of lease upon infirmity of tenant. (a) A tenant or the authorized representative of the tenant may terminate the lease prior to the expiration of the lease in the manner provided in subdivision 3 if the tenant has or, if there is more than one tenant, all the tenants have, been found by a medical professional to need to move into a medical care facility and:

(1) require assistance with instrumental activities of daily living or personal activities of daily living due to medical reasons or a disability;

(2) meet one of the nursing facility level of care criteria under section 144.0724, subdivision 11; or

(3) have a disability or functional impairment in three or more of the areas listed in section 245.462, subdivision 11a, so that self-sufficiency is markedly reduced because of a mental illness.

(b) When a tenant requires an accessible unit as defined in section 363A.40, subdivision 1, and the landlord can provide an accessible unit in the same complex where the tenant currently resides that is available within two months of the request, then the provisions of this section do not apply and the tenant may not terminate the lease.

Subd. 3. Notice. When the conditions in subdivision 2 have been met, the tenant or the tenant's authorized representative may terminate the lease by providing at least two months' written notice to be effective on the last day of a calendar month. The notice must be either hand-delivered or mailed by postage prepaid, first class United States mail. The notice must include: (1) a copy of the medical professional's written documentation of the infirmity; and (2) documentation showing that the tenant has been accepted as a resident or has a pending application at a location where the medical professional has indicated that the tenant needs to move. The termination of a lease under this section shall not relieve the eligible tenant from liability either for the payment of rent or other sums owed prior to or during the notice period, or for the payment of amounts necessary to restore the premises to their condition at the commencement of the tenancy, ordinary wear and tear excepted.

Subd. 4. Waiver prohibited. Any waiver of the rights of termination provided by this section, including lease provisions or other agreements that require a longer notice period than those provided for in this section, shall be void and unenforceable.

Subd. 5. Other laws. Nothing in this section affects the rights or remedies available in this chapter or other law, including but not limited to chapter 363A.

Initial & final inspection

2023 Regular Session

SF2909/HF2890

Chapter 52, Article 19, Sections 85-86

Judiciary and Public Safety omnibus bill

Effective: January 1, 2024, and where applicable, apply to leases filed on or after that date

Short description

Requires both an initial and final inspection for the tenant and sets timing and scheduling requirements for inspections and sets damages.

Bill language

Chapter 52, Article 19, Sections 85-86: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/52/

Sec. 85. Minnesota Statutes 2022, section 504B.178, subdivision 4, is amended to read:

Subd. 4. Damages. Any landlord who fails to:

(1) provide a written statement within three weeks of termination of the tenancy;

(2) provide a written statement within five days of the date when the tenant leaves the building or dwelling due to the legal condemnation of the building or dwelling in which the tenant lives for reasons not due to willful, malicious, or irresponsible conduct of the tenant; or

(3) transfer or return a deposit as required by subdivision 5,; or

(4) provide the tenant with notice for an initial inspection and move-out inspection as required by section 504B.182, and complete an initial inspection and move-out inspection when requested by the tenant, after receipt of the tenant's mailing address or delivery instructions, as required in subdivision 3, is liable to the tenant for damages in an amount equal to the portion of the deposit withheld by the landlord and interest thereon as provided in subdivision 2, as a penalty, in addition to the portion of the deposit wrongfully withheld by the landlord and interest thereon.

Sec. 86 [504B.182]

INITIAL AND FINAL INSPECTION REQUIRED.

Subdivision 1. Initial inspection. (a) At the commencement of a residential tenancy, or within 14 days of a residential tenant occupying a unit, the landlord must notify the tenant of their option to request an initial inspection of the residential unit for the purposes of identifying existing deficiencies in the rental unit to avoid deductions for the security deposit of the tenant at a future date. If the tenant requests an inspection, the landlord and tenant shall schedule the inspection at a mutually acceptable date and time.

(b) In lieu of an initial inspection or move-out inspection under subdivision 2, when a tenant agrees, a landlord may provide written acknowledgment to the tenant of photos or videos of a rental unit and agree to the condition of the rental unit at the start or end of the tenancy.

Subd. 2. Move-out inspection. Within a reasonable time after notification of either a landlord or residential tenant's intention to terminate the tenancy, or before the end of the lease term, the landlord shall notify the tenant in writing of the tenant's option to request a move-out inspection and of the tenant's right to be present at the inspection. At a reasonable time, but no earlier than five days before the termination or the end of the lease date, or day the tenant plans to vacate the unit, the landlord, or an agent of the landlord, shall, upon the request of the tenant, make a move-out inspection of the premises. The purpose of the move-out inspection shall be to allow the tenant an opportunity to remedy identified deficiencies, in a manner consistent with the rights and obligations of the parties under the rental agreement, in order to avoid deductions from the security deposit. If a tenant chooses not to request a move-out inspection, the duties of the landlord under this subdivision are discharged. If an inspection is requested, the parties shall attempt to schedule the inspection at a mutually acceptable date and time.

Subd. 3. Other requirements under law. Nothing in this section changes the requirements or obligations under any other section of law, including but not limited to sections 504B.178, 504B.185, 504B.195, or 504B.271, 504B.375, and 504B.381.

Subd. 4. Waiver. Except as allowed under subdivisions 1 and 2, when a tenant chooses not to request an initial or move-out inspection, or alternate inspection under subdivision 1, paragraph (b), any provision, whether oral or written, of any lease or other agreement, whereby any provision of this section is waived by a tenant, is contrary to public policy and void.

Limits on crime-free lease provisions

2023 Regular Session

SF2909/HF2890

Chapter 52, Article 19, Section 99

Judiciary and Public Safety omnibus bill

Effective: June 1, 2024

Short description

A residential landlord may not impose a penalty on a residential tenant or terminate the lease of a residential tenant for the conduct of the residential tenant, household member, or guest occurring off of the premises or curtilage of the premises, unless: (1) the conduct would constitute a crime of violence against another tenant, the tenant's guest, the landlord, or the landlord's employees, regardless of whether a charge was brought or a conviction obtained; or (2) the conduct results in a conviction of a crime of violence against a person unrelated to the premises.

Implications

Crime-free clauses to leases need to change to comply with the new requirements.

Bill language

Chapter 52, Article 19, Section 99: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/52/

Sec. 99. Minnesota Statutes 2022, section 504B.171, is amended by adding a subdivision to read:

Subd. 2a. Limitation on crime-free lease provisions. A residential landlord may not impose a penalty on a residential tenant or terminate the lease of a residential tenant for the conduct of the residential tenant, household member, or guest occurring off of the premises or curtilage of the premises, unless (1) the conduct would constitute a crime of violence against another tenant, the tenant's guest, the landlord, or the landlord's employees, regardless of whether a charge was brought or a conviction obtained; or (2) the conduct results in a conviction of a crime of violence against a person unrelated to the premises. For purposes of this subdivision, crime of violence has the meaning given in section 624.712, subdivision 5, except that it does not include offenses under chapter 152.

EFFECTIVE DATE. This section is effective June 1, 2024.

Pet declawing & devocalization prohibited

2023 Regular Session

SF2909/HF2890

Chapter 52, Article 19, Section 83

Judiciary and Public Safety omnibus bill

Effective: January 1, 2024, and where applicable, apply to leases filed on or after that date

Short description

A landlord who allows an animal on the premises shall not:

1. advertise the availability of a real property for occupancy in a manner designed to discourage application for occupancy of that real property because an applicant's animal has not been declawed or devocalized;

2. refuse to allow the occupancy of a real property, refuse to negotiate the occupancy of a real property, or otherwise make unavailable or deny to another person the occupancy of a real property because of that person's refusal to declaw or devocalize an animal; or

3. require a tenant or occupant of real property to declaw or devocalize an animal allowed on the premises.

Any requirement or lease provision that violates this subdivision is void and unenforceable.

Implications

If you allow animals on the premises, you cannot insist on declaw or devocalizing of the pets as a condition of the lease. There are penalties associated.

Bill language

Chapter 52, Article 19, Section 83: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/52/

Sec. 83. [504B.114] PET DECLAWING AND DEVOCALIZATION PROHIBITED.

Subdivision 1. Definitions. (a) For purposes of this section, the following terms have the meanings given.

(b) "Animal" has the meaning given in section 343.20, subdivision 2.

(c) "Application for occupancy" means all phases of the process of applying for the right to occupy a real property, including but not limited to filling out applications, interviewing, and submitting references.

(d) "Claw" means a hardened keratinized modification of the epidermis or a hardened keratinized growth that extends from the end of the digits of certain mammals, birds, reptiles, and amphibians that is commonly referred to as a claw, talon, or nail.

(e) "Declawing" means performing, procuring, or arranging for any procedure, such as an onychectomy, tendonectomy, or phalangectomy, to remove or prevent the normal function of an animal's claw or claws.

(f) "Devocalizing" means performing, procuring, or arranging for any surgical procedure, such as a vocal cordectomy, to remove an animal's vocal cords or to prevent the normal function of an animal's vocal cords.

Subd. 2. Prohibitions. A landlord who allows an animal on the premises shall not:

(1) advertise the availability of a real property for occupancy in a manner designed to discourage application for occupancy of that real property because an applicant's animal has not been declawed or devocalized;

(2) refuse to allow the occupancy of a real property, refuse to negotiate the occupancy of a real property, or otherwise make unavailable or deny to another person the occupancy of a real property because of that person's refusal to declaw or devocalize an animal; or

(3) require a tenant or occupant of real property to declaw or devocalize an animal allowed on the premises.

Any requirement or lease provision that violates this subdivision is void and unenforceable.

Subd. 3. Penalties. (a) A city attorney, a county attorney, or the attorney general may bring an action in district court to obtain injunctive relief for a violation of this section and to enforce the civil penalties provided in this subdivision.

(b) In addition to any other penalty allowed by law, a violation of subdivision 2, clause (1), shall result in a civil penalty of not more than $1,000 per advertisement, to be paid to the entity that is authorized to bring the action under this section.

(c) In addition to any other penalty allowed by law, a violation of subdivision 2, clause (2) or (3), shall result in a civil penalty of not more than $1,000 per animal, to be paid to the entity that is authorized to bring the action under this section.

Prohibited fees

2023 Regular Session

SF2909/HF2890

Chapter 52, Article 19, Section 84

Judiciary and Public Safety omnibus bill

Effective: January 1, 2024, and where applicable, apply to leases filed on or after that date

Short description

A landlord must disclose all nonoptional fees in the lease agreement. The sum total of rent and all nonoptional fees must be described as the total monthly payment and be listed on the first page of the lease. A unit advertised for a residential tenancy must disclose the nonoptional fees included with the total amount for rent in any advertisement or posting. In a lease agreement disclosure or unit advertisement, the landlord must disclose whether utilities are included or not included in the rent.

Implications

You will need to make sure that your lease agreements are formatted to include the total monthly payment and listed on the first page of the lease. You must disclose the nonoptional fees included with the total amount for advertised posting. You must also disclose if utilities are included or excluded in the rent.

Bill language

Chapter 52, Article 19, Section 84: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/52/

Sec. 84. [504B.120] PROHIBITED FEES.

Subdivision 1. Disclosure of fees. A landlord must disclose all nonoptional fees in the lease agreement. The sum total of rent and all nonoptional fees must be described as the Total Monthly Payment and be listed on the first page of the lease. A unit advertised for a residential tenancy must disclose the nonoptional fees included with the total amount for rent in any advertisement or posting. In a lease agreement disclosure or unit advertisement, the landlord must disclose whether utilities are included or not included in the rent.

Subd. 2. Penalties. A landlord who violates this section is liable to the residential tenant for treble damages and the court may award the tenant reasonable attorney fees.

Residential evictions—Combining allegations

2023 Regular Session

SF2909/HF2890

Chapter 52, Article 19, Section 103

Judiciary and Public Safety omnibus bill

Effective: January 1, 2024, and where applicable, apply to leases filed on or after that date

Short description

This removes the pay to defend language in eviction proceedings, where a resident will no longer need to pay rent that is past due in a breach of lease case prior to the hearing.

Implications

Residents will no longer have to pay rent that is past due in a breach of lease case.

Bill language

Chapter 52, Article 19, Section 103: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/52/

Sec. 103. Minnesota Statutes 2022, section 504B.285, subdivision 5, is amended to read:

Subd. 5. Combining allegations. (a) An action for recovery of the premises may combine the allegation of nonpayment of rent and the allegation of material violation of the lease, which shall be heard as alternative grounds.

(b) In cases where rent is outstanding, a tenant is not required to pay into court the amount of rent in arrears, interest, and costs as required under section 504B.291 to defend against an allegation by the landlord that the tenant has committed a material violation of the lease.

(c) (b) If the landlord does not prevail in proving material violation of the lease, and the landlord has also alleged that rent is due, the tenant shall be permitted to present defenses to the court that the rent is not owing. The tenant shall be given up to seven days of additional time to pay any rent determined by the court to be due. The court may order the tenant to pay rent and any costs determined to be due directly to the landlord or to be deposited with the court.

Residential evictions—Court processes

2023 Regular Session

SF2909/HF2890

Chapter 52, Article 19, Sections 105-115

Judiciary and Public Safety omnibus bill

Effective: January 1, 2024, and apply to actions filed on or after that date

Short description

This law makes multiple changes to the court processes in housing cases.

Bill language

Chapter 52, Article 19, Sections 105-115: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/52/

Sec. 105. Minnesota Statutes 2022, section 504B.321, is amended to read: 504B.321 COMPLAINT AND SUMMONS.

Subdivision 1. Procedure. (a) To bring an eviction action, the person complaining shall file a complaint with the court, stating the full name and date of birth of the person against whom the complaint is made, unless it is not known, describing the premises of which possession is claimed, stating the facts which authorize the recovery of possession, and asking for recovery thereof.

(b) The lack of the full name and date of birth of the person against whom the complaint is made does not deprive the court of jurisdiction or make the complaint invalid.

(c) The court shall issue a summons, commanding the person against whom the complaint is made to appear before the court on a day and at a place stated in the summons.

(d) (c) The appearance shall be not less than seven nor more than 14 days from the day of issuing the summons, except as provided by subdivision 2.

(d) If applicable, the person filing a complaint must attach a copy of the written notice described in subdivision 1a. The court shall dismiss an action without prejudice for failure to provide a notice as described in subdivision 1a and grant an expungement of the eviction case court file.

(e) A copy of the complaint shall be attached to the summons, which shall state that the copy is attached and that the original has been filed.

Subd. 1a. Written notice. (a) Before bringing an eviction action alleging nonpayment of rent or other unpaid financial obligation in violation of the lease, a landlord must provide written notice to the residential tenant specifying the basis for future eviction action. The notice must include:

(1) the total amount due;

(2) a specific accounting of the amount of the total due from unpaid rent, late fees, and other charges under the lease;

(3) the name and address of the person authorized to receive rent and fees on behalf of the landlord;

(4) the following statement: "You have the right to seek legal help. If you can't afford a lawyer, free legal help may be available. Contact Legal Aid or visit www.LawHelpMN.org to know your rights and find your local Legal Aid office.";

(5) the following statement: "To apply for financial help, contact your local county or Tribal social services office, apply online at MNBenefits.mn.gov or call the United Way toll-free information line by dialing 2-1-1 or 800-543-7709"; and

(6) the following statement: "Your landlord can file an eviction case if you do not pay the total amount due or move out within 14 days from the date of this notice. Some local governments may have an eviction notice period longer than 14 days.

(b) The landlord or an agent of the landlord must deliver the notice personally or by first class mail to the residential tenant at the address of the leased premises.

(c) If the residential tenant fails to correct the rent delinquency within 14 days of the delivery or mailing of the notice, or the number of days required by a local government rule or law if the notice period prior to an eviction required by the local government is longer than 14 days, or fails to vacate, then the landlord may bring an eviction action under subdivision 1 based on nonpayment of rent.

Subd. 1b. Notice constitutes verification of emergency. (a) Receipt of the notice under subdivision 1a shall be deemed by a county or other agency requiring verification of emergency to qualify a tenant for assistance to be sufficient demonstration of an emergency situation under section 256D.06, subdivision 2, and Minnesota Rules, chapter 9500. For purposes of chapter 256J and Minnesota Rules, chapter 9500, a county agency verifies an emergency situation by receiving and reviewing a notice under this section.

(b) When it receives a copy of the notice required by this section, the county must not:

(1) require a tenant to provide additional verification of the emergency; or

(2) require additional verification that the landlord will accept the funds demanded in the notice required by this section to resolve the emergency.

Subd. 2. Expedited procedure. (a) In an eviction action brought under section 504B.171 or on the basis that the tenant is causing a nuisance or other illegal behavior that seriously endangers the safety of other residents, their property, or the landlord's property residential tenant engages in behavior that seriously endangers the safety of other residents, or intentionally and seriously damages the property of the landlord or a tenant, the person filing the complaint shall file an affidavit stating specific facts and instances in support of why an expedited hearing is required.

(b) The complaint and affidavit shall be reviewed by a referee or judge and scheduled for an expedited hearing only if sufficient supporting facts are stated and they meet the requirements of this paragraph.

(c) The appearance in an expedited hearing shall be not less than five days nor more than seven days from the date the summons is issued. The summons, in an expedited hearing, shall be served upon the residential tenant within 24 hours of issuance unless the court orders otherwise for good cause shown.

(d) If the court determines that the person seeking an expedited hearing did so without sufficient basis under the requirements of this subdivision, the court shall impose a civil penalty of up to $500 for abuse of the expedited hearing process.

(e) The court may only consider allegations under paragraph (a) during an expedited hearing. The court may not consolidate claims heard under the expedited procedure with any additional claims, including but not limited to breach of lease, holding over under section 504B.285, or nonpayment of rent under section 504B.291.

Subd. 3. Contents of complaint. The person bringing a complaint under this section must:

(1) attach the current written lease, if any, or most recent written lease in existence, and any relevant lease addenda;

(2) if alleging nonpayment of rent, attach a detailed, itemized accounting or statement listing the amounts;

(3) if alleging a breach of lease, identify the clause of the lease which is the basis of the allegation, the nature of the conduct constituting the alleged breach of lease, the dates on which the alleged conduct took place, and the clause granting the right to evict based on the alleged conduct;

(4) if alleging a violation of section 504B.171, specify the nature of the conduct constituting the alleged violation and the dates on which the alleged conduct took place;

(5) if alleging a violation of section 504B.285, subdivision 1, attach a copy of any notice to vacate or notice to quit; and

(6) state in the complaint whether the tenancy is affected by a federal or state housing subsidy program through project-based federal assistance payments; the Section 8 program, as defined in section 469.002, subdivision 24; the low-income housing tax credit program; or any other similar program, and include the name of the agency that administers the housing subsidy program.

Subd. 4. Summons. The court shall issue a summons, commanding the person against whom the complaint is made to appear before the court on the day and at the place stated in the summons. A copy of the complaint must be attached to the summons. The summons must include, at a minimum:

(1) the full name of the person against whom the complaint is brought;

(2) the date, time, and location of the hearing;

(3) information about the methods for participating in the court appearance, including, if applicable, information for appearing by telephone or computer and contact information for the court regarding remote participation;

(4) the following statement: "You have the right to seek legal help or request a reasonable accommodation from the court for your hearing. Contact the court as soon as possible if you need an accommodation. If you can't afford a lawyer, free legal help may be available. Contact Legal Aid or visit www.LawHelpMN.org to know your rights and find your local Legal Aid office.";

(5) the following statement: "To apply for financial help, contact your local county or Tribal social services office, apply online at MNBenefits.mn.gov, or call the United Way toll-free information line by dialing 2-1-1 or 800-543-7709"; and

(6) notification that a copy of the complaint is attached and has been filed with the court.

Subd. 5. Defective filing or service. The court must dismiss and expunge the record of any action if the person bringing the action fails to comply with this section.

Sec. 106. Minnesota Statutes 2022, section 504B.331, is amended to read: 504B.331 SUMMONS; HOW SERVED.

(a) The summons and complaint must be served at least seven days before the date of the court appearance specified in section 504B.321, in the manner provided for service of a summons in a civil action in district court. It may be served by any person not named a party to the action.

(b) If the defendant cannot be found in the county, the summons and complaint may be served at least seven days before the date of the court appearance by:

(1) leaving a copy at the defendant's last usual place of abode with a person of suitable age and discretion residing there; or

(2) if the defendant had no place of abode, by leaving a copy at the property described in the complaint with a person of suitable age and discretion occupying the premises.

(c) Failure of the sheriff to serve the defendant is prima facie proof that the defendant cannot be found in the county.

(d) Where the defendant cannot be found in the county, service of the summons and complaint may be made upon the defendant by posting the summons in a conspicuous place on the property for not less than one week if:

(1) the property described in the complaint is:

(i) nonresidential and no person actually occupies the property; or

(ii) residential and service has been attempted at least twice on different days, with at least one of the attempts having been made between the hours of 6:00 p.m. and 10:00 p.m.; and

(2) the plaintiff or the plaintiff's attorney has signed and filed with the court an affidavit stating that:

(i) the defendant cannot be found, or that the plaintiff or the plaintiff's attorney believes that the defendant is not in the state; and

(ii) a copy of the summons has been mailed to the defendant at the defendant's last known address if any is known to the plaintiff.; or

(iii) the plaintiff or plaintiff's attorney has communicated to the defendant that an eviction hearing has been scheduled, including the date, time, and place of the hearing specified in the summons, by at least one form of written communication the plaintiff regularly uses to communicate with the defendant that have a date and time stamp.

(e) If the defendant or the defendant's attorney does not appear in court on the date of the appearance, the trial shall proceed.

Sec. 107. Minnesota Statutes 2022, section 504B.335, is amended to read: 504B.335 ANSWER; TRIAL.

(a) At the court appearance specified in the summons, the defendant may answer the complaint, and the court shall hear and decide the action, unless it grants a continuance of the trial as provided in section 504B.341. When scheduling a trial date, the court must select a date that allows for a fair, thorough, and timely adjudication of the merits of the case, including the complexity of the matter, the need for the parties to obtain discovery, the need for the parties to ensure the presence of witnesses, the opportunity for the defendant to seek legal counsel and raise affirmative defenses, and any extenuating factors enumerated under section 504B.171.

(b) Either party may demand a trial by jury.

(c) The proceedings in the action are the same as in other civil actions, except as provided in sections 504B.281 to 504B.371.

(d) The court, in scheduling appearances and hearings under this section, shall give priority to any eviction brought under section 504B.171, or on the basis that the defendant is a tenant and is causing a nuisance or seriously endangers the safety of other residents, their property, or the landlord's property residential tenant engages in behavior that seriously endangers the safety of other residents, or intentionally and seriously damages the property of the landlord or a tenant.

(e) The court may not require the defendant to pay any amount of money into court, post a bond, make a payment directly to a landlord, or by any other means post security for any purpose prior to final disposition of an action, except if the final disposition of the action may be delayed for more than ten days, the court may order the defendant to provide security in a form and amount that the court approves, based on the totality of the circumstances, provided that the amount of security may not include any amounts allegedly owed prior to the date of filing of the action and may not exceed the amount of the monthly or periodic rent that accrues during the pendency of the action. Nothing in this paragraph shall affect an appeal bond under section 504B.371, subdivision 3.

Sec. 108. Minnesota Statutes 2022, section 504B.345, subdivision 1, is amended to read:

Subdivision 1. General. (a) If the court or jury finds for the plaintiff, the court shall immediately enter judgment that the plaintiff shall have recovery of the premises, and shall tax the costs against the defendant. The court shall issue execution in favor of the plaintiff for the costs and also immediately issue a writ of recovery of premises and order to vacate.

(b) The court shall give priority in issuing a writ of recovery of premises and order to vacate for an eviction action brought under section 504B.171 or on the basis that the tenant is causing a nuisance or seriously endangers the safety of other residents, their property, or the landlord's property.

(c) If the court or jury finds for the defendant, then the court:

(1) the court shall enter judgment for the defendant, tax the costs against the plaintiff, and issue execution in favor of the defendant; and

(2) the court may shall expunge the records relating to the action under the provisions of section 484.014 or under the court's inherent authority at the time judgment is entered or after that time upon motion of the defendant.

(d) Except in actions brought: (1) under section 504B.291 as required by section 609.5317, subdivision 1; (2) under section 504B.171; or (3) on the basis that the residential tenant is causing a nuisance or seriously endangers the safety of other residents, their property, or the landlord's property, upon a showing by the defendant that immediate restitution of the premises would work a substantial hardship upon the defendant or the defendant's family, engages in behavior that seriously endangers the safety of other residents, or intentionally and seriously damages the property of the landlord or a tenant, the court shall stay the writ of recovery of premises and order to vacate for a reasonable period, not to exceed seven days.

Sec. 109. Minnesota Statutes 2022, section 504B.345, is amended by adding a subdivision to read:

Subd. 3. Motion to vacate judgment. Any party may bring a motion to vacate a judgment in an eviction action. An order denying a motion to vacate a judgment is considered a judgment for purposes of appeal under section 504B.371.

Sec. 110. Minnesota Statutes 2022, section 504B.361, subdivision 1, is amended to read: Subdivision 1. Summons and writ. The state court administrator shall develop a uniform form for the summons and writ of recovery of premises and order to vacate. The summons shall conform to the requirements enumerated under section 504B.321, subdivision 3. The writ for recovery of premises and order to vacate must include:

(1) the following statement: "You have the right to seek legal help. If you can't afford a lawyer, free legal help may be available. Contact Legal Aid or visit www.LawHelpMN.org to know your rights and find your local Legal Aid office."; and

(2) the following statement: "To apply for financial help, contact your local county or Tribal social services office, apply online at MNBenefits.mn.gov, or call the United Way toll-free information line by dialing 2-1-1 or 800-543-7709."

Sec. 111. Minnesota Statutes 2022, section 504B.371, subdivision 3, is amended to read:

Subd. 3. Appeal bond. If the party appealing remains in possession of the property, that party must give a bond that provides that:

(1) all costs of the appeal will be paid;

(2) the party will comply with the court's order; and

(3) all the regular rent and other damages due to the party excluded from possession during the pendency of the appeal will be paid as that rent accrues. The court may not require a bond including back rent, late fees, disputed charges, or any other amount in excess of the regular rent as it accrues each month.

Sec. 112. Minnesota Statutes 2022, section 504B.371, subdivision 4, is amended to read:

Subd. 4. Stay pending appeal. After the appeal is taken, all further proceedings in the case are stayed, except as provided in subdivision 7.

Sec. 113. Minnesota Statutes 2022, section 504B.371, subdivision 5, is amended to read:

Subd. 5. Stay of writ issued before appeal. (a) Except as provided in subdivision 7, If the court issues a writ for recovery of premises and order to vacate before an appeal is taken, the appealing party may request that the court stay further proceedings and execution of the writ for possession of premises and order to vacate, and the court shall grant a stay.

(b) If the party appealing remains in possession of the premises, that party must give a bond under subdivision 3.

(c) When the officer who has the writ for possession of premises and order to vacate is served with the order granting the stay, the officer shall cease all further proceedings. If the writ for possession of premises and order to vacate has not been completely executed, the defendant shall remain in possession of the premises until the appeal is decided.

Sec. 114. Minnesota Statutes 2022, section 504B.371, subdivision 7, is amended to read:

Subd. 7. Exception. Subdivisions 1, 4, and 6 do not apply in an action on a lease, against a tenant holding over after the expiration of the term of the lease, or a termination of the lease by a notice to quit, where the plaintiff has prevailed on a claim pursuant to section 504B.171, subdivision 2, if the plaintiff gives a bond conditioned to pay all costs and damages if on the appeal the judgment of restitution is reversed and a new trial ordered. In such a case, the court shall issue a writ for recovery of premises and order to vacate notwithstanding the notice of appeal, as if no appeal had been taken, and the appellate court shall issue all needful writs and processes to carry out any judgment which may be rendered in the court.

Sec. 115. REPEALER. Minnesota Statutes 2022, section 504B.341, is repealed.

Residential evictions—Eviction records

2023 Regular Session

SF2909/HF2890

Chapter 52, Article 19, Sections 117-119

Judiciary and Public Safety omnibus bill

Effective: January 1, 2024

Short description

Changes to discretionary expungement, mandatory expungement, and reclassifications of nonpublic records for eviction actions.

Implications

There will be changes to accessibility of eviction information for potential lessors.

Bill language

Chapter 52, Article 19, Sections 117-119: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/52/

Sec. 117. Minnesota Statutes 2022, section 484.014, subdivision 2, is amended to read:

Subd. 2. Discretionary expungement. The court may order expungement of an eviction case court file only upon motion of a defendant and decision by the court, if the court finds that the plaintiff's case is sufficiently without basis in fact or law, which may include lack of jurisdiction over the case, that if the court finds the expungement is clearly in the interests of justice and those interests are not outweighed by the public's interest in knowing about the record.

Sec. 118. Minnesota Statutes 2022, section 484.014, subdivision 3, is amended to read:

Subd. 3. Mandatory expungement. Except for clause (6), the court shall, without motion by any party, order expungement of an eviction case:

(1) commenced solely on the grounds provided in section 504B.285, subdivision 1, clause (1), if the court finds that the defendant occupied real property that was subject to contract for deed cancellation or mortgage foreclosure and:

(1) (i) the time for contract cancellation or foreclosure redemption has expired and the defendant vacated the property prior to commencement of the eviction action; or

(2) (ii) the defendant was a tenant during the contract cancellation or foreclosure redemption period and did not receive a notice under section 504B.285, subdivision 1a, 1b, or 1c, to vacate on a date prior to commencement of the eviction case.;

(2) if the defendant prevailed on the merits;

(3) if the court dismissed the plaintiff's complaint for any reason;

(4) if the parties to the action have agreed to an expungement;

(5) three years after the eviction was ordered; or

(6) upon motion of a defendant, if the case is settled and the defendant fulfills the terms of the settlement.

Sec. 119. Minnesota Statutes 2022, section 504B.321, is amended by adding a subdivision to read:

Subd. 6. Nonpublic record. An eviction action is not accessible to the public until the court enters a final judgment, except that parties to the case and licensed attorneys assisting a party in the case, regardless of whether or not they are the attorney of record, shall have access to the eviction action file.

Right to counsel

2023 Regular Session

SF2909/HF2890

Chapter 52, Article 19, Section 89

Judiciary and Public Safety omnibus bill

Effective: August 1, 2023

Short description

A defendant in public housing subject to an eviction action under sections 504B.281 to 504B.371 alleging breach of lease under section 504B.171 or 504B.285 who is financially unable to obtain counsel has the right to counsel appointed by the court. The complaint required by section 504B.321 shall include the notice on the first page of the complaint in bold 12-point type: "If financially unable to obtain counsel, the defendant has the right to a court-appointed attorney." At the initial hearing, the court shall ask the defendant if the defendant wants court-appointed counsel and shall explain what such appointed counsel can accomplish for the defendant.

Implications

If you are public housing, the complaint you use must fit the new requirements.

Bill language

Chapter 52, Article 19, Section 89: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/52/

Sec. 89. [504B.268] RIGHT TO COUNSEL IN PUBLIC HOUSING; BREACH OF LEASE EVICTION ACTIONS.

Subdivision 1. Right to counsel. A defendant in public housing subject to an eviction action under sections 504B.281 to 504B.371 alleging breach of lease under section 504B.171 or 504B.285 who is financially unable to obtain counsel has the right to counsel appointed by the court. The complaint required by section 504B.321 shall include the notice on the first page of the complaint in bold 12-point type: "If financially unable to obtain counsel, the defendant has the right to a courtappointed attorney." At the initial hearing, the court shall ask the defendant if the defendant wants court-appointed counsel and shall explain what such appointed counsel can accomplish for the defendant.

Subd. 2. Qualifications. Counsel appointed by the court must (1) have a minimum of two years' experience handling public housing evictions; (2) have training in handling public housing evictions; or (3) be supervised by an attorney who meets the minimum qualifications under clause (1) or (2).

Subd. 3. Compensation. By January 15, 2024, and every year thereafter, the chief judge of the judicial district, after consultation with public housing attorneys, legal aid attorneys, and members of the private bar in the district, shall establish a compensation rate for attorney fees and costs associated with representation under subdivision 1. The compensation to be paid to an attorney for such service rendered to a defendant under this subdivision may not exceed $5,000, exclusive of reimbursement for expenses reasonably incurred, unless payment in excess of that limit is certified by the chief judge of the district as necessary to provide fair compensation for services of an unusual character or duration.

EFFECTIVE DATE. This section is effective August 1, 2023.

Unlawful exclusion or removal fees

2023 Regular Session

SF2909/HF2890

Chapter 52, Article 19, Section 92

Judiciary and Public Safety omnibus bill

Effective: January 1, 2024, and where applicable, apply to petitions filed on or after that date

Short description

Adds that the court administrator may charge a filing fee in the amount set for complaints and counterclaims in conciliation court, subject to the filing of an inability to pay affidavit.

Bill language

Chapter 52, Article 19, Section 92: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/52/

Sec. 92. Minnesota Statutes 2022, section 504B.375, subdivision 1, is amended to read:

Subdivision 1. Unlawful exclusion or removal. (a) This section applies to actual or constructive removal or exclusion of a residential tenant which may include the termination of utilities or the removal of doors, windows, or locks. A residential tenant to whom this section applies may recover possession of the premises as described in paragraphs (b) to (e).

(b) The residential tenant shall present a verified petition to the district court of the judicial district of the county in which the premises are located that:

(1) describes the premises and the landlord;

(2) specifically states the facts and grounds that demonstrate that the exclusion or removal was unlawful, including a statement that no writ of recovery of the premises and order to vacate has been issued under section 504B.345 in favor of the landlord and against the residential tenant and executed in accordance with section 504B.365; and

(3) asks for possession.

(c) If it clearly appears from the specific grounds and facts stated in the verified petition or by separate affidavit of the residential tenant or the residential tenant's attorney or agent that the exclusion or removal was unlawful, the court shall immediately order that the residential tenant have possession of the premises.

(d) The residential tenant shall furnish security, if any, that the court finds is appropriate under the circumstances for payment of all costs and damages the landlord may sustain if the order is subsequently found to have been obtained wrongfully. In determining the appropriateness of security, the court shall consider the residential tenant's ability to afford monetary security.

(e) The court shall direct the order to the sheriff of the county in which the premises are located and the sheriff shall execute the order immediately by making a demand for possession on the landlord, if found, or the landlord's agent or other person in charge of the premises. If the landlord fails to comply with the demand, the officer shall take whatever assistance may be necessary and immediately place the residential tenant in possession of the premises. If the landlord, the landlord's agent, or other person in control of the premises cannot be found and if there is no person in charge, the officer shall immediately enter into and place the residential tenant in possession of the premises. The officer shall also serve the order and verified petition or affidavit immediately upon the landlord or agent, in the same manner as a summons is required to be served in a civil action in district court.

(f) The court administrator may charge a filing fee in the amount set for complaints and counterclaims in conciliation court, subject to the filing of an inability to pay affidavit.

WORKFORCE

Background studies

2023 Regular Session

SF2995/HF2930

Chapter 70, Article 7

Health omnibus bill

Effective: July 1, 2023, unless noted otherwise

Short description

Establishes requirements for maltreatment and state licensing checks for guardians and conservators, changes the classification of certain disqualification data from public to private data and makes corresponding statutory changes, provides for electronic access to notices and documents through NETStudy 2.0 and an applicant portal, modifies disqualification timelines for certain conduct, extends reconsideration timelines, and modifies fees for a range of health and human services background studies

Summary

• Amends § 13.46, subd. 4. Changes classification from public data to private data for the reason for a disqualification and decision not to grant a set aside, for a licensure applicant, license holder, or controlling individual who has requested reconsideration of the disqualification.

• Amends § 245C.02 by adding subd. 7a. Defines “conservator” in DHS background studies chapter.

• Amends § 245C.02 by adding subd. 11f. Defines “guardian” in DHS background studies chapter.

• Amends § 245C.02, subd. 13e. Adds providing electronic access to notices for entities and background study subjects to list of NETStudy 2.0 functions.

• Amends § 245C.03, subd. 1. Deletes “contractors” from list of persons for whom the commissioner must conduct a background study; adds to list of entities and individuals for whom the commissioner must conduct background studies, licensed treatment programs for persons with sexual psychopathic personality or sexually dangerous persons. Provides effective dates for specified clauses and paragraphs.

• Amends § 245C.03, subd. 1a. Specifies that all data obtained by the commissioner for background studies is classified as private data.

• Amends § 245C.031, subd. 1. Specifies that all data obtained by the commissioner for alternative background studies is classified as private data.

• Amends § 245C.04, subd. 1. Specifies background study requirements for legal non-licensed providers at reauthorization or when a new study is needed for CCAP. This section is effective April 28, 2025.

• Amends § 245C.05, subd. 1. Adds requirement for when an individual does not have a driver’s license or state identification card; adds criminal history disclosure form to required submissions. Requires background study subjects and entities to update contact information via NETStudy 2.0.

• Amends § 245C.05, subd. 2c. Removes language so that the commissioner will not notify the agency that initiated the study of the reason for the disqualification or that information about the decision to set aside the disqualification will be available without the individual’s consent. Provides an April 1, 2024, effective date.

• Amends § 245C.05, subd. 4. Deletes a reference to legal non-licensed childcare providers for purposes of the department submitting background study results to county agencies. Requires background study subjects to access documents electronically in the applicant portal; allows a study subject to request a variance to this requirement and request paper documentation. Provides effective dates for specified paragraphs and clauses.

• Amends § 245C.08, subd. 1. Adds clause stating that background studies for licensed treatment programs for persons with sexual psychopathic personality or sexually dangerous persons must only include a review of certain listed information. Provides a January 1, 2024, effective date.

• Amends § 245C.10, subd. 1d. Allows the commissioner to increase background study fees commensurate with any increase in fees by the state Bureau of Criminal Apprehension. DHS can currently increase fees commensurate with national criminal history record check fees. Strikes language requiring the commissioner to report fee increases to the legislature.

• Amends subdivisions of section 245C.10 to raise background study fees by $2, for the following: supplemental nursing services agencies; occupations regulated by the commissioner of health; personal care provider organizations; temporary personnel agencies, educational programs, and professional services agencies; adult foster care and family adult day services; unlicensed home and community-based waiver providers; children’s therapeutic services and supports providers; human services licensed programs; child care programs; community first services and supports organizations; providers of housing support; child protection workers or social services staff with responsibilities for child protective duties; providers of special transportation service; children’s residential facilities; guardians and conservators (*fee adjusted from $110 to $50); providers of housing support services; early intensive developmental and behavioral intervention providers; Professional Educators Licensing Standards Board; and Board of School Administrators.

• Regarding 15-year disqualification. Amends § 245C.15, subd. 2. Strikes language that included all felony-level drug crimes under chapter 152 and felony-level convictions involving alcohol or drug use in the 15-year disqualification category. Inserts specific first- and second-degree drug crimes. Provides an August 1, 2024, effective date.

• Regarding five-year disqualification. Proposes coding for § 245C.15, subd. 4b. Creates new category of five-year background study disqualifications. Paragraph (a) lists felony-level drug offenses under chapter 152 that were previously included in the 15-year disqualification category, as follows:

o 152.021, subdivision 2 or 2a (controlled substance possession crime in the first degree; methamphetamine manufacture crime)

o 152.022, subdivision 2 (controlled substance possession crime in the second degree)

o 152.023, subdivision 2 (controlled substance crime in the third degree)

o 152.024, subdivision 2 (controlled substance crime in the fourth degree)

o 152.025 (controlled substance crime in the fifth degree)

o 152.0261 (importing controlled substances across state borders)

o 152.0262 (possession of substances with intent to manufacture methamphetamine)

o 152.027, subdivision 6, paragraph (c) (sale of synthetic cannabinoids)

o 152.096 (conspiracy to commit controlled substance crime)

o 152.097 (simulated controlled substances)

• Paragraphs (b), (c), and (d) include language from other categories relating to aiding and abetting, attempt, or conspiracy, offenses in other jurisdictions, and disqualification period start dates when a disqualification is based on a judicial determination other than a conviction. Makes this section effective for background studies requested on or after August 1, 2024

• Amends § 245C.17, subd. 2. Removes language so that a disqualification notice will not include statements indicating that entities or individuals other than the study subject will be informed of the reason for the disqualification or factors in a decision to set aside the disqualification. Provides an April 1, 2024, effective date.

• Amends § 245C.17, subd. 3. Removes language requiring an entity to obtain a copy of an individual’s disqualification notice explaining the reasons for disqualification; removes exception to the prohibition on the commissioner notifying individuals or entities about information contained in a background study. Provides an April 1, 2024, effective date.

• Amends § 245C.17, subd. 6. Deletes a reference to legal non-licensed providers for purposes of the department providing a notice of background study results to county agencies. This section is effective April 28, 2025.

• Amends § 245C.21, subd. 1a. Removes reference to time frames specified in subdivision 2 that are shorter than 30 days. Provides a July 1, 2024, effective date.

• Amends § 245C.21, subd. 2. Extends reconsideration request time frames from 15 days to 30 days for certain disqualified individuals. Provides a July 1, 2024, effective date.

• Amends § 245C.22, subd. 7. Makes changes related to reclassification of information on reasons for disqualification from public to private data. Makes such information private for an individual who has received a set aside or when the commissioner has granted a variance to a license holder related to the disqualified individual. Removes requirement for childcare providers to provide notices. Provides an April 1, 2024, effective date

• Amends § 245C.22, subd. 1. Removes language related to reclassification of information on reasons for disqualification from public to private data. Adds paragraph requiring the commissioner to inform the applicant, license holder, or other entity, in response to a reconsideration request, that the reason for the individual’s disqualification and the information about reconsideration factors are not public data. Provides an April 1, 2024, effective date

• Amends § 245C.23, subd. 2. Deletes a reference to legal non-licensed providers for purposes of the department notifying a county agency about the results of a reconsidered background study. This section is effective April 28, 2025

• Amends § 245C.30, subd. 2. Removes language so that when the commissioner grants a variance for an individual providing services in the individual’s home, disclosure of the reason for disqualification will not occur without the individual’s consent. Provides an April 1, 2024, effective date.

• Amends § 245C.32, subd. 2. Allows the commissioner to use the department’s background study systems to share background study documentation electronically with entities and individuals who are background study subjects; makes conforming change related to fees.

• Amends § 524.5-118. Updates terminology to “maltreatment and state licensing agency checks and criminal history check” for guardians and conservators. Updates required data checks; modifies procedural requirements for guardian and conservator checks. Requires the commissioner to provide the court with maltreatment data within 25 working days of receiving a request.

Implications

Changes to background study process and study subjects.

Bill language

Chapter 70, Article 7: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/70/

Career & technical education (CTE)

2023 Regular Session

HF2497/SF2684

Chapter 55, Article 1, Section 6

Education omnibus bill

Effective: July 1, 2023

Short description

Adds the career and technical education (CTE) consortia to state statutes and describes the consortia’s activities. Increases the consortia’s appropriation from $3,000,000 to $5,000,000 per year and extends the program statewide. Requires an advisory committee and reporting.

Summary

Establishes CTE consortia that must focus on development of career pathways, development of career and technical programs, ensure students are equipped with technical and workplace skills needed by regional employers. Development of career and technical education advisory committees to provide advice to CTE consortia.

Implications

Opportunities for employers to serve on career and technical advisory committees and provide insight on industry needed skills.

Bill language

Chapter 55, Article 1, Section 6 https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/55/

Caregiver Respite Services Grants

2023 Regular Session

SF2934/HF2847

Chapter 61, Article 2, Section 3

Human Services omnibus bill

Effective: July 1, 2023

Short description

$1.8 million is allocated for FY2024 for caregiver respite services grants with additional funds available to the Board on Aging to administer these grants.

Bill Language

Chapter 61, Article 2, Section 3: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

Sec. 3. [256.9756] CAREGIVER RESPITE SERVICES GRANTS.

Subdivision 1. Caregiver respite services grant program established. The Minnesota Board on Aging must establish a caregiver respite services grant program to increase the availability of respite services for family caregivers of people with dementia and older adults and to provide information, education, and training to respite caregivers and volunteers regarding caring for people with dementia. From the money made available for this purpose, the board must award grants on a competitive basis to respite service providers, giving priority to areas of the state where there is a high need of respite services.

Subd. 2. Eligible uses. Grant recipients awarded grant money under this section must use a portion of the grant award as determined by the board to provide free or subsidized respite services for family caregivers of people with dementia and older adults.

Subd. 3. Report. By January 15, 2026, the board shall submit a progress report about the caregiver respite services grants in this section to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over human services finance and policy. The progress report must include metrics of the use of grant program money. This subdivision expires upon submission of the report. The board shall notify the revisor of statutes when the report is submitted.

Drive for Five workforce initiative

2023 Regular Session

SF3035/HF3028

Chapter 53, Article 20, Section 2, Subdivision 3, Paragraphs d-k

Jobs and Labor Policy and Finance bill

Effective: July 1, 2023

Short description

Workforce development initiative focused on key industries, including the caring profession.

Summary

To grow workforce and address tight labor market, skills mismatch, geographic mismatch and other barriers to employment, the Drive for Five workforce initiative will prepare a workforce to enter five of the most critical occupational four categories in the state with high-growth jobs and family-sustaining wages: Technology, Caring Professions, Education, Manufacturing, and Trades. The Drive for Five Workforce Fund will create a pipeline of workers who are skilled and prepared to enter high-growth and high-wage employment and begin to address Minnesota’s high job vacancy rate. The Drive for Five Workforce Fund invests in populations that face the biggest barriers to employment: people of color, people with disabilities, and those with other systemic barriers.

Implications

Opportunity for employers to benefit from enhanced training and job placement into our sector. Association grants for training and employer engagement strategies.

Bill language

Chapter 53, Article 20, Section 2, Subdivision 3, Paragraphs d-k: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/53/

Dual-Training Pipeline Grant Program

2023 Regular Session

HF2073/SF2075

Chapter 41, Article 1, Section 2, Subdivision 21

Higher Education omnibus bill

Effective: July 1, 2023

Short description

Dual- training pipeline grants.

Summary

Significant increased investment in the on-the-job training grant and an expansion of eligible industries to include transportation and early childhood/childcare.

Implications

Increased funding should provide greater access to this training model which combines education with sector specific on-the-job training.

Bill language

Chapter 41, Article 1, Section 2, Subd 21: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/41/

Getting to Work Grant Program

2023 Regular Session

SF3035/HF3028

Chapter 53, Article 15, Section 3

Jobs and Labor Policy and Finance bill

Effective: July 1, 2023

Short description

Creates the Getting to Work Grant Program in statute to make grants to nonprofits to provide, repair, or maintain motor vehicles for low-income workers to help them get and keep employment. Stipulates an educational or counseling component must be part of each program and sets out the application process and the eligibility criteria. Requires a report to the legislature.

Summary

Eligible participants must have a household income at or below 200 percent of the federal poverty level, be at least 18 years of age, have a valid driver's license, proof of insurance and can demonstrate that a vehicle is needed to obtain or maintain employment. Grantee organizations would offer programs to participants for new or used vehicles, loans, or vehicle repair.

Implications

Access to services and programs to mitigate transportation barriers for our workforce.

Bill language

Chapter 53, Article 15, Section 3: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/53/

Health professional education loan forgiveness program

2023 Regular Session

SF2995/HF2930

Chapter 70, Article 5, Section 6

Health omnibus bill

Effective: July 1, 2023

Short description

Amends § 144.1501, subd. 2. Modifies eligibility for loan forgiveness under the health professional education loan forgiveness program, to extend eligibility to nurses working in assisted living facilities. Also strikes obsolete language and makes technical changes. Changes language to refer to assisted living facilities.

Implications

Allows nurses in assisted living facilities to access loan forgiveness under the health professionals education loan forgiveness program.

Bill language

Chapter 70, Article 5, Section 6: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/70/

High school elective credit for LTC employment

2023 Regular Session

HF2497/SF2684

Chapter 55, Article 2, Section 52

Education omnibus bill

Effective: 2023-2024 school year

Short description

Allows a student in grade 11 or 12 to earn up to two elective credits for their time working in an institutional long-term care or licensed assisted living facility, a home- and community-based services and supports provider, a hospital or health system clinic, or a childcare center, at the discretion of the enrolling school district or charter school.

Summary

Incentivizes high school students to work in caring profession by allowing elective credit. Young adults can gain work experience and deepen their world perspective all while simultaneously earning a paycheck and elective high school credit.

Can earn 1 elective credit for every 350 hours worked. High school junior and seniors can earn up to two elective credits each year.

Students would be hired by the organization into an available job. Students would still need to be appropriately vetted, hired and trained by organizations.

Up to individual school districts to develop forms for application to receive credit. Schools must verify employment and hours worked before awarding elective credit

Implications

Need for employers to promote this opportunity and build out pipeline connections with schools.

Bill language

Chapter 55, Article 2, Section 52: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/55/

Sec. 52.

[124D.475] CREDIT FOR EMPLOYMENT WITH HEALTH CARE PROVIDERS.

Consistent with the career and technical pathways program, a student in grade 11 or 12 who is employed by an institutional long-term care or licensed assisted living facility, a home and communitybased services and supports provider, a hospital or health system clinic, or a child care center may earn up to two elective credits each year toward graduation under section 120B.024, subdivision 1, paragraph (a), clause (7), at the discretion of the enrolling school district or charter school. A student may earn one elective credit for every 350 hours worked, including hours worked during the summer. A student who is employed by an eligible employer must submit an application, in the form or manner required by the school district or charter school, for elective credit to the school district or charter school in order to receive elective credit. The school district or charter school must verify the hours worked with the employer before awarding elective credit.

Higher education post-secondary attainment goals

2023 Regular Session

HF1126/SF1011

Chapter 44, Section 1

Higher Education Policy omnibus bill

Effective: July 1, 2023

Short description

Provisions from the agency bill from the Office of Higher Education (OHE), which makes various technical changes to programs administered by OHE. It also includes a section affecting the University of Minnesota (UMN) permanent university fund, which was originally in HF2613.

Summary

Amends the statute establishing the higher education attainment goal, which is that 70% of Minnesota residents ages 25-44 will hold a postsecondary degree by 2025. This section expands the degrees that can be counted towards that goal to include industry-recognized credentials. Also adds the Department of Labor and Industry to the list of agencies that will help estimate the number of credentials in the state population.

Implications

Recognition of industry credentials as a key driver of workforce development for the state. Establishes some parity between workforce related credentials and higher education attainment

Bill language

Chapter 44, Section 1: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/44/

Home- & Community-Based Workforce Development Grant

2023 Regular Session

HF1403/SF2818

Chapter 50, Article 1, Section 36

Human Services Policy omnibus bill

Effective: July 1, 2023

Short description

Amends the Home- and Community-Based (HCBS) Workforce Development Grant Program by increasing maximum income eligibility from 200 percent to 300 percent of the federal poverty guidelines. Excludes workforce development grant money from being counted as income, assets, or personal property for purposes of determining eligibility or recertifying eligibility for various income assistance programs. Excludes workforce development grant money from being counted as income or assets for purposes of determining eligibility for Medical Assistance.

Summary

The HCBS grant program is intended to attract and retain direct care workers who provide home and community-based services for people with disabilities and older adults. It can be used for supports training, retention bonuses and employee-owned cooperative grants. These grants will no longer affect eligibility for economic assistance programs. They are now excluded from income for some tax purposes. Additionally, the income thresholds were increased so more people are now eligible to apply. See the tabs below for specific details.

Implications

Increased eligibility and elimination of loss of public assistance benefits.

Bill language

Chapter 50, Article 1, Section 36: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/50/

Inclusive higher education grants 2023 Regular Session

HF2073/SF2075

Chapter 41, Article 2, Sections 5-6

Higher Education omnibus bill

Effective: July 1, 2023

Short description

Establishes an inclusive higher education technical assistance center and establishes and/or expands access to grants for students with intellectual disabilities. Appropriates one million dollars for each biennium for grants.

Summary

Creation of a technical assistance center to provide expertise, advice, and other assistance to students with intellectual disabilities and other stakeholders. Provide grants to increase access and enrollment of students with intellectual disabilities.

Implications

Improved access to higher education opportunities for students with intellectual disabilities.

Bill language

Chapter 41, Article 2, Sections 5-6: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/41/

Labor Education Advancement Program (LEAP)

2023 Regular Session

SF3035/HF3028

Chapter 53, Article 1, Section 10

Jobs and Labor Policy and Finance bill

Effective: August 1, 2023

Short description

Modifies the Labor Education Advancement Grant Program (LEAP) to focus on both recruiting and retaining people of color, Indigenous people, and women in registered apprenticeship programs. Allows grants to nonprofits and Tribal governments as well as community-based organizations

Summary

The objective of the LEAP grant is to increase participation of people of color, Indigenous people and women in apprenticeship programs registered with DLI. Successful applicants will articulate and demonstrate an ability to achieve these objectives through various means, including outreach, education, assessment, preparation, support services, instruction, training, placement, and retention activities.

Implications

Potential for partnership with community-based organizations and other non-profits to increase participation in an apprenticeship program.

Bill language

Chapter 53, Article 1, Section 10: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/53/

Long-term services & supports workforce grants

2023 Regular Session

SF2934/HF2847

Chapter 61, Article 1, Section 10

Human Services omnibus bill

Effective: July 1, 2023

Short description

Creates § 256.4764. Establishes long-term services and supports workforce incentive grants to assist with recruiting and retaining direct support professionals.

Summary

Establishes grants for long-term services and supports providers and facilities to assist with recruiting and retaining direct support professionals. Eligible employers include home- and community-based services providers, facilities certified as an intermediate care for persons with developmental disabilities, nursing facilities, providers of personal care assistance services, and providers of home care services.

Grantees must develop a distribution plan that outlines how money will be used. Funds may be used to provide payments to eligible workers (those making $30 per hour or less and is currently employed) for the following purposes: (1) retention, recruitment, and incentive payments; (2) postsecondary loan and tuition payments; (3) child care costs; (4) transportation-related costs; (5) personal care assistant background study costs; and (6) other costs associated with retaining and recruiting workers, as approved by the commissioner.

Eligible workers may receive cumulative payments up to $1,000 per year from the workforce incentive grant account and all other state money intended for the same purpose.

Grants received by workers will not be considered income for purposes of determining eligibility for state government programs and are excluded from income under Minnesota income tax laws.

Requires the commissioner to treat grant payments awarded under this section as an applicable credit under the nursing facility payments chapter of statute

Implications

Opportunity for employers to leverage grant funds to provide recruitment and retention bonuses.

Bill language

Chapter 61, Article 1, Section 10: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

Mental Health Grants for Healthcare Professionals

2023 Regular Session

SF2995/HF2930

Chapter 70, Article 4, Sections 94-95

Health omnibus bill

Effective: July 1, 2023

Short description

Mental health grants for healthcare professionals amends Laws 2022, Chapter 99, Article 1, § 46. Amends a section authorizing the distribution of grants to improve mental health of healthcare professionals, to make the following an allowable use of grant funds: identifying and changing structural barriers in healthcare delivery that create unnecessary workplace stress. A new subd. 2a allows encumbrances for grants under this program issued by June 30 of each year to be certified for up to three years after the year the funds were appropriated. Amends Laws 2022, Chapter 99, Article 3, § 9. Makes the fiscal year 2023 appropriation for mental health grants for healthcare professionals available until June 30, 2027. This section is effective the day following final enactment.

Summary

One million, one-time appropriation for a program that allows healthcare entities, including nursing facilities, to establish or expand programs focused on improving the mental health of healthcare professionals. To be available until June 30, 2027.

Grants shall be awarded for programs that are evidenced-based or evidenced-informed and are focused on addressing the mental health of healthcare professionals by:

• identifying and addressing the barriers to and stigma among healthcare professionals associated with seeking self-care, including mental health and substance use disorder services;

• encouraging healthcare professionals to seek support and care for mental health and substance use disorder concerns;

• identifying risk factors associated with suicide and other mental health conditions; or

• developing and making available resources to support healthcare professionals with self-care and resiliency.; or

• identifying and modifying structural barriers in healthcare delivery that create unnecessary stress in the workplace.

Implications

Ability for nursing facilities to request funds for mental health wellness programs for their workforce.

Bill language

Chapter 70, Article 4, Sections 94-95: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/70/

Minnesota Employer Reasonable Accommodation Fund

2023 Regular Session

SF3035/HF3028

Chapter 53, Article 15, Section 31

Jobs and Labor Policy and Finance bill

Effective: July 1, 2023

Short description

Creates a program to reimburse eligible employers for the cost of providing reasonable accommodations to applicants or employees with disabilities.

Summary

Creates a program to reimburse eligible employers for the cost of providing reasonable accommodations to applicants or employees with disabilities. Limits participation to employers with a principal place of business in Minnesota, employing 500 employees or less, with no more than $5,000,000 in gross annual revenue. Awards reimbursement on a rolling basis for a maximum of $30,000 per employer per year, for one-time accommodation costs between $250 and $15,000 per individual with a disability or for ongoing accommodation costs without limitation. Creates an account in the special revenue fund for the purposes of the program. Allows the commissioner to provide technical assistance to applicants about accommodations requests and for up to 20 percent of the biennial appropriation to the program to be used for administration and marketing expenses. Requires public notification about the availability of funds under the program and annual reports to the legislature. Sets the program to expire June 30, 2025, or when money appropriated for its purpose expires, whichever is later.

Implications

Employers may be able to tap into an underutilized labor market leveraging funds to facilitate workplace accommodations for disabled workers.

Bill language

Chapter 53, Article 15, Section 31: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/53/

New American legal, social services & long-term care workforce grant program

2023 Regular Session

SF2934/HF2847

Chapter 61, Article 1, Section 60 Human Services omnibus bill

Effective: July 1, 2023

Short description

Establishes a program to award grants to organizations supporting immigrants, refugees, and other individuals born abroad and their children, obtain or maintain employment in the long-term care workforce to providing services and support to seek or maintain work eligibility or citizenship.

Summary

Eligible grantees are those with legal or other expertise working with new Americans. Funds can be used for a variety of legal advice, social service support and targeted recruitment, training, education to obtain skills needed to work in long-term care, including course fees, childcare, transportation, tuition, financial coaching, mental health, uniform, or repaying student loan debt.

Bill also requires an impact study and evaluation to be completed by June 30, 2027, to evaluate the grant programs impact on employee retention, employee compensation, career advancement and mobility, career satisfaction and workplace safety.

Implications

Increasing talent pipeline for long-term care profession.

Bill language

Chapter 61, Article 1, Section 60: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

Next Generation free nursing assistant training 2023 Regular Session

HF2073/SF2075

Chapter 41, Article 1, Section 2, Subdivision 42

Higher Education omnibus bill

Effective: July 1, 2023

Short description

Next Generation Nursing Assistant Training program funding to the Office of Higher Education, to be administered by HealthForce Minnesota.

Summary

Appropriates $3 million in FY2024 in new one-time funding for transfer to MnState to administer the Next Generation Nursing Assistant Training Program. This program was launched in December 2021 and was originally supported by federal COVID-19 pandemic relief funding. The appropriation is available until the end of FY2025.

HealthForce will seek to provide select Minnesota State colleges funding to facilitate free nursing assistant training and testing for an estimated 1,600 students in fiscal years 2024 and 2025. Program builds in connections to employment.

Implications

Employers are encouraged to engage with their local colleges to build on-going relationships with the training instructors and program staff. The goal is to increase the overall talent pool by providing training to individuals who are not yet affiliated with the long-term care profession.

Bill language

Chapter 41, Article 1, Section 2, Subdivision 42:

https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/41/

North Star Promise tuition free program

2023 Regular Session

HF2073/SF2075

Chapter 41, Article 2, Sections 19

Higher Education omnibus bill

Effective: July 1, 2023

Short description

Establishes a new financial aid program to make public postsecondary institutions free for students whose families make under $80,000 per year.

Summary

This new financial aid program will cover the cost of tuition and fees for Minnesota families earning less than $80,000 AGI a year. Students must meet all state financial aid eligibility and attend a public higher education institution or tribal college. This investment will break down financial barriers for an estimated 15,000-30,000 Minnesota students.

Implications

Improved access to higher education opportunities for low-income students.

Bill language

Chapter 41, Article 2, Section 19: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/41/

Office of Child Care Community Partnerships established

2023 Regular Session

SF3035/HF3028

Chapter 53, Article 15, Section 1

Jobs and Labor Policy and Finance bill

Effective: July 1, 2023

Short description

Establishes the Office of Child Care Community Partnerships within the Department of Employment and Economic Development to coordinate with government and business entities to promote investment in childcare businesses and access and to administer childcare economic development grants, among other duties. Requires an annual report to the legislature on the office’s activities beginning January 15, 2024, and each year thereafter.

Implications

Potential for increased quantity and quality of available childcare for the long-term care workforce.

Bill language

Chapter 53, Article 15, Section 1: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/53/

Office of New Americans established 2023 Regular Session

SF3035/HF3028

Chapter 53, Article 15, Section 2

Jobs and Labor Policy and Finance bill

Effective: July 1, 2023

Short description

Establishes an Office of New Americans within the Department of Employment and Economic Development (DEED).

Summary

Creates the Office of New Americans within the Department of Employment and Economic Development, led by a governor-appointed assistant commissioner, to coordinate and guide access to state programs and services for immigrants and refugees, with particular focus on economic development and workforce programming. Establishes a list of duties, regular reporting to the legislature, and an advisory Interdepartmental Coordinating Council on Immigrant and Refugee Affairs. Allows the office to apply for grants for interested state agencies, community partners, and stakeholders to assist in the duties of the office.

Implications

Addresses state’s workforce needs by connecting employers and job seekers within the immigrant and refugee community. Potentially will increase overall numbers of viable talent in Minnesota.

Bill language

Chapter 53, Article 15, Section 2: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/53/

OSHA penalty increases

2023 Regular Session

SF3035/HF3028

Chapter 53, Article 1, Sections 15-20

Jobs and Labor Policy and Finance bill

Effective: January 1, 2024

Short description

Makes several conforming changes to OSHA penalties. Sections 15 to 19 increase the fine amounts for willful or repeat, serious, nonserious, failure to correct, and posting violations of occupational safety and health standards to conform to federal law. Section 20 provides that future yearly increases to fine amounts will be tied to inflation.

Summary

Increases fines from Minnesota Occupational Safety and Health Administration (MN OSHA) as such the following:

• Willful or repeated violations minimum fines went from $5,000 to $11,162, for each violation

• Willful or repeated violations maximum fines went from $70,000 to $156,259, for each violation

• Serious violations maximum fines went from $7,000 to $15,625, for each violation

• Nonserious violations maximum fines went from $7,000 to $15,625, for each violation

• Failure to correct a violation maximum fine went from $7,000 to $15,625, for each day which the failure or violation continues

• Employers who violate the posting requirements maximum fine went from $7,000 to $15,625, for each violation

Also provides for a mechanism for the commissioner to increase fines tied yearly based upon inflation

Implications

Increased monetary penalties.

Bill language

Chapter 53, Article 1, Sections 15-20: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/53/

Posting of veterans’ benefits and services

2023 Regular Session

SF3035/HF3028

Chapter 53, Article 1, Section 12

Jobs and Labor Policy and Finance bill

Effective: January 1, 2024

Short description

Employers with 50 or more FTE must display a poster that the Department of Labor and Industry (DLI) will create outlining benefits available to veterans.

Summary

Requires the commissioner of labor and industry to create and distribute a veterans’ benefits and services poster in consultation with the commissioner of Veterans’ Affairs. Provides the minimum information that must be included in the poster and requires annual review and update of content. Requires employers with 50 or more full-time employees to display the poster.

Implications

Employers must obtain the poster and display it by January 1, 2024.

Bill language

Chapter 53, Article 1, Section 12: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/53/

Provider capacity grants for rural & underserved communities

2023 Regular Session

SF2934/HF2847

Chapter 61, Article 1, Section 59 Human Services omnibus bill

Effective: July 1, 2023

Short description

Grants to increase access to home- and community-based services in rural and underserved areas.

Summary

Establishes a grant program that provides awards to organizations that provide community-based services to rural or underserved communities, must be used to build organizational capacity to provide home- and community-based services in the state and to build new or expanded infrastructure to access medical assistance reimbursement.

Grants must be used by recipients to (1) expand existing services; (2) increase access in rural or underserved areas; (3) create new home and community-based organizations;(4) connect underserved communities to benefits and available services; or (5) build new or expand infrastructure to access medical assistance reimbursement.

$17,148,000 in fiscal year 2024 available until June 30, 2027

Implications

Opportunity for employers to leverage grant funds to add new or enhance existing home- and community-based service offerings in rural and underserved communities.

Bill language

Chapter 61, Article 1, Section 59: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

Targeted population workforce grants 2023 Regular Session

SF3035/HF3028

Chapter 53, Article 15, Section 21

Jobs and Labor Policy and Finance bill

Effective: July 1, 2023

Short description

Appropriates $25 million per year to targeted population workforce development that provides funding to community-based organizations to provide skills training that leads to employment or business development in high-growth industries. Creates a grant program for small businesses to obtain funds for purposes of diversity and inclusion training.

Summary

Creates a competitive grant program for community-based organizations to provide training that leads to employment or business development. Limits grants to $750,000 per year per organization and requires grants be for two years. Allows partnering with other organizations.

Creates a competitive grant program for small businesses to obtain diversity and inclusion training, including creating and implementing a plan to actively hire and retain people of color. Limits grants to $300,000 per year per business, with a maximum of one grant per business per biennium. Requires submission of plans for use of funds and for implementation of a diversity and inclusion plan after training is complete. Exempts the grants from the requirements of the uniform outcome report cards and the laws against subsidies to private businesses.

Creates a capacity building grant program for community-based organizations to cover the costs of staff, infrastructure, training, and service model development. Limits grants to $50,000 per organization with a limit of one grant per organization. Exempts the grants from Chapter 53, 2023 Regular Session, Minnesota House Research Department, Page 47, Section Description–Article 15: Employment and Economic Development the requirements of the uniform outcome report cards. Requires grant recipients to submit a report to the commissioner on the use of grant funds and the impact of the funding on the organization’s future ability to provide workforce services.

Implications

Partnering with community-based organizations who are providing skills training for our sector. Qualifying small employers may consider applying for grants to help establish a diversity and inclusion training program to further their plans to hire, retain and advance people of color.

Bill language

Chapter 53, Article 15, Section 21: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/53/

Workplace Safety Grants

2023 Regular Session

SF2995/HF2930

Chapter 70, Article 4, Section 109

Health omnibus bill

Effective: July 1, 2023

Short description

Directs the commissioner of health to administer a program to award workplace safety grants to increase safety in healthcare settings and fund programs to train healthcare setting staff on deescalation and positive support services. Lists entities eligible for grants and requires entities seeking a grant to provide the specified information to the commissioner. Requires the commissioner to evaluate applications and award grants according to a process established by the commissioner. Provides a grant award shall not exceed $50,000.

Summary

Workplace safety grants, up to maximum of $50,000 each to eligible entities including long-term care facilities to increase safety measures in healthcare settings and establish or expand programs to train staff in healthcare settings on de-escalation and positive support services. Eligible entities must submit an application (to-be-determined) include information about:

• the type of entity or organization seeking grant funding;

• the specific safety measures or activities for which the applicant will use the grant funding;

• a proposed budget for each of the specific activities for which the applicant will use the grant funding;

• how the grant-funded measures will lead to long-term improvements in safety and stability for staff and for patients accessing health care from the applicant; and

• methods the applicant will use to evaluate the effectiveness of the safety measures and changes that will be made if the measures are deemed ineffective.

$4,400,000 in fiscal year 2024, onetime appropriation and available until June 30, 2027

Bill language

Chapter 70, Article 4, Section 109: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/70/

EMPLOYMENT LAW

Ban on noncompete agreements

2023 Regular Session

SF3035/HF3028

Chapter 53, Article 6

Jobs, Economic Development, Labor, and Industry omnibus bill

Effective: July 1, 2023

Short description

The new noncompete law prohibits any post-employment noncompete agreement with an employee or independent contractor regardless of a person’s income, with only two very limited carveouts for certain noncompetes.

Summary

Effective July 1, 2023, the new noncompete law prohibits any post-employment noncompete agreement with an employee or independent contractor regardless of a person’s income, with only two very limited carveouts for certain noncompetes agreed upon (1) in connection with the sale of a business or (2) in anticipation of the dissolution of a business. Subject to those limited exceptions, the law provides that any “covenant not to compete,” which is “an agreement between an employee and employer that restricts the employee, after termination of employment, from performing: (1) work for another employer for a specified period of time; (2) work in a specified geographic area; or (3) work for another employer in a capacity that is similar to the employee’s work for the employer that is party to the agreement” is void and unenforceable. Importantly, a “covenant not to compete” does not include nondisclosure, confidentiality, trade secret, or non-solicitation agreements (including specifically those restricting the ability to use client or contact lists or restricting the solicitation of customers). Also, because “covenant not to compete” is defined in terms of prohibiting conduct “after termination of the employment,” the new law will not prohibit agreements that restrict an employee or independent contractor from working for another business while performing services for a business. In addition, it is not clear whether an agreement between a company and a former employee who is no longer providing services to the company (such as a post-employment separation agreement between an employer and a former employee) that includes restrictions that otherwise fall within the “covenant not to compete” definition also are void and unenforceable under the new law.

In addition to the noncompete ban, subdivision 3 of the new law also prohibits employers from requiring employees who reside and work in Minnesota to agree, as a condition of employment, to a provision in “an agreement or contract” that would: (1) require the employee[s] to adjudicate outside of Minnesota a claim arising in Minnesota; or (2) deprive the employee[s] of the substantive protection of Minnesota law with respect to a controversy arising in Minnesota. While this prohibition on foreign choice of law and forum provisions certainly applies to any “covenant not to compete,” and the reference to an “agreement or contract” in this subdivision of the new law appears to be broader in scope than just any “covenant not to compete,” the inclusion of the following language at the end of the relevant subdivision creates some ambiguity regarding the scope of any “agreement or contract” covered by the nonMinnesota choice of law/venue restriction: “This subdivision applies only to claims arising under this section.”

It is very possible the scope of the choice of law and venue limitation imposed by the new law will be the subject of litigation.

The new noncompete ban law is effective July 1, 2023, and applies to contracts and agreements entered into on or after that date.

Implications

Effective July 1, 2023, you may not include non-compete clauses in your contracts, with only two very limited carve outs.

Bill language

Chapter 53, Article 6: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/53/

Earned sick & safe time

2023 Regular Session

SF3035/HF3028

Chapter 53, Article 12

Jobs, Economic Development, Labor, and Industry omnibus bill

Effective: January 1, 2024

Short description

Another very significant change for employers and employees throughout Minnesota is the law’s creation of statewide sick and safe time leave. Minneapolis, St. Paul, Duluth, and Bloomington currently have sick and safe time ordinances, but this law brings similar leave obligations to all Minnesota employers with one or more employees.

Summary

Under the law, beginning January 1, 2024, employees are entitled to accrue one hour of sick and safe leave for every 30 hours worked, up to a total of 48 hours per year, and employees will be able to carry accrued hours, subject to an 80-hour total cap on accrued hours. Alternatively, employers may opt to front-load 80 hours of sick and safe leave at the beginning of each applicable benefit plan year.

The statewide sick and safe time leave allows for absences due to an expansive list of reasons, including the following:

• To care for an employee’s own or to care for a family member’s mental or physical illness, injury, or other health condition, medical diagnosis, care, or treatment

• Due to domestic abuse, sexual assault, or stalking of the employee or the employee's family member

• Closure of the employee's place of business due to weather, or the need to care for a family member whose school or place of care has been closed due to weather or other public emergency

• The employee's inability to work or telework because the employee is prohibited from working by the employer due to health concerns related to the potential transmission of a communicable illness

• Due to determination by the health authorities or a healthcare professional that the presence of the employee or family member of the employee in the community would jeopardize the health of others because of the exposure of the employee or family member of the employee to a communicable disease

In addition to the broad range of permissible absences, the law also defines “family member” broadly. Specifically, the law’s definition includes nieces and nephews, aunts and uncles, children-in-law, siblings-in-law, and any “individual related by blood or whose close association with the employee is the equivalent of a family relationship” and “up to one individual annually designated by the employee.”

Under the law, employers are required to provide notice regarding earned sick and safe leave to employees and include certain information in their handbooks if they have one. The Minnesota Department of Labor is to prepare a uniform employee notice form. In addition to notice, employers must also inform employees about accrued sick and safe time via earned income statements totaling earned hours accrued for use and used during the pay period. The law also creates a private right of action for employees who have suffered a violation of the law. Finally, the law explicitly states that it does not “preempt, limit, or otherwise affect the applicability of any other law, regulation, requirement, policy, or standard that provides for a greater amount, accrual, or use by employees of paid sick and safe time or that extends other protections to employees,” and therefore employers with employees in Minneapolis, St. Paul, Duluth, or Bloomington will need to continue to ensure compliance with the applicable local ordinances.

Existing employer policies, such as paid time off policies, may satisfy the requirements of the new law if the existing policies meet the accrual and usage requirements set forth in the new statute.

The new earned sick and safe leave law goes into effect January 1, 2024.

Implications

Effective January 1, 2024, if you don’t currently have a policy which satisfies the new law on the accrual and usage requirements, you will be subject to the new law.

Bill language

Chapter 53, Article 12: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/53/

Employer-sponsored meetings & communications

2023 Regular Session

SF3035/HF3028

Chapter 53, Article 11, Section 25

Jobs, Economic Development, Labor, and Industry omnibus bill

Effective: August 1, 2023

Short description

The law creates a new statute banning employers from holding mandatory employer-sponsored “captive audience” meetings if those meetings are for the purpose of communicating the employer’s opinion on religious or political matters. Employers are prohibited from threatening to take or taking adverse action against employees who refuse to attend or participate in an employer-sponsor meeting, or who refuse to receive or listen to an employer communication, if the meeting/communication is to communicate the employer’s opinion about religious or political matters.

Summary

The law creates a new statute, § 181.531, which bans employers from holding mandatory employersponsored “captive audience” meetings if those meetings are for the purpose of communicating the employer’s opinion on religious or political matters. Under the law, employers are prohibited from threatening to take or taking adverse action against employees who refuse to attend or participate in an employer-sponsor meeting, or who refuse to receive or listen to an employer communication, if the meeting/communication is to communicate the employer’s opinion about religious or political matters.

The law defines “political matters” to mean those matters “relating to elections for political office, political parties, proposals to change legislation, proposals to change regulations, proposals to change public policy, and the decision to join or support any political party or political, civic, community, fraternal, or labor organization.”

“Religious matters” are defined as matters “relating to religious belief, affiliation, and practice and the decision to join or support any religious organization or association.”

The provision also includes civil remedies, allowing aggrieved employees to bring a civil action within 90 days of the alleged violation. Remedies for successful complainants include injunctive relief; reinstatement; back pay and reestablishment of any employee benefits, including seniority any other relief needed to make the employee whole; and reasonable attorney fees and costs.

Similar laws passed or proposed in other states have faced constitutional challenges under the First Amendment and the Supremacy Clause of the Constitution. Given this, it is likely this new law will face legal challenges.

The law goes into effect on August 1, 2023.

Implications

Effective August 1, 2023, employers are prohibited from threatening to take or taking adverse action against employees who refuse to attend or participate in an employer-sponsor meeting, or who refuse to receive or listen to an employer communication, if the meeting/communication is to communicate the employer’s opinion about religious or political matters.

Bill language

Chapter 53, Article 11, Section 25: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/53/

Ergonomics requirement

2023 Regular Session

SF3035/HF3028

Chapter 53, Article 1, Section 21

Jobs, Economic Development, Labor, and Industry omnibus bill

Effective: July 1, 2023, and January 1, 2024

Short description

Healthcare facilities including nursing homes with a North American Industrial Classification system code of 623110, must create and implement an effective written ergonomics program establishing the employer’s plan to minimize the risk of its employees developing or aggravating musculoskeletal disorders.

Summary

The ergonomics program must include assessment, training, early reporting, a process for employees to provide possible solutions, procedures for physical plant modifications or major construction projects, and an annual evaluation.

There must be an established procedure to annually assess the effectiveness of the ergonomics program, including evaluation of the process to mitigate work-related risk factors in response to reporting of symptoms of musculoskeletal disorders by employees. The annual assessment shall determine the success of the implemented ergonomic solutions and whether goals set by the ergonomics program have been met.

The employees must be trained on all of the following topics: the name of the safety committee members, the facility ergonomics program, early signs and symptoms of musculoskeletal injuries and the process and procedures to report them. New employees must be trained before starting work, current employees must receive training in accordance with the employer developed ergonomics program. Training must be during work hours and compensated and the standard rate of pay and must be provided in a language and with vocabulary that the employee can understand.

Employers subject to this must solicit feedback from employees through its safety committee and the safety committee must be directly involved in ergonomics worksite assessments and participate in the annual evaluation that is required.

The plan must be referenced in a written Workplace Accident and Injury Reduction (AWAIR) program. There are certain record-keeping requirements and well as requirements for the availability of records, upon request. Reporting of ergonomics problems must not be discouraged. The Commissioner shall enforce the requirements.

The legislation also created a grant program to provide matching funds for employers who are subject to these requirements. There are certain eligibility requirements for employers to qualify for the grants.

Implications

If you are a nursing facility, and you don’t already have a qualifying ergonomics program, you must develop and implement one by January 1, 2024. The commissioner may propose an ergonomics standard using expedited rulemaking.

Bill language

Chapter 53, Article 1, Section 21: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/53/

Sec. 21. [182.677] ERGONOMICS.

Subdivision 1. Definitions. (a) For purposes of this section, the definitions in this subdivision apply unless otherwise specified.

(b) "Health care facility" means a hospital with a North American Industrial Classification system code of 622110, 622210, or 622310; an outpatient surgical center with a North American Industrial Classification system code of 621493; and a nursing home with a North American Industrial Classification system code of 623110.

(c) "Warehouse distribution center" means an employer with 100 or more employees in Minnesota and a North American Industrial Classification system code of 493110, 423110 to 423990, 424110 to 424990, 454110, or 492110.

(d) "Meatpacking site" means a meatpacking or poultry processing site with 100 or more employees in Minnesota and a North American Industrial Classification system code of 311611 to 311615, except 311613.

(e) "Musculoskeletal disorder" or "MSD" means a disorder of the muscles, nerves, tendons, ligaments, joints, cartilage, blood vessels, or spinal discs.

Subd. 2. Ergonomics program required. (a) Every licensed health care facility, warehouse distribution center, or meatpacking site in the state shall create and implement an effective written ergonomics program establishing the employer's plan to minimize the risk of its employees developing or aggravating musculoskeletal disorders. The ergonomics program shall focus on eliminating the risk. To the extent risk exists, the ergonomics program must include feasible administrative or engineering controls to reduce the risk.

(b) The program shall include:

(1) an assessment to identify and reduce musculoskeletal disorder risk factors in the facility;

(2) an initial and ongoing training of employees on ergonomics and its benefits, including the importance of reporting early symptoms of musculoskeletal disorders;

(3) a procedure to ensure early reporting of musculoskeletal disorders to prevent or reduce the progression of symptoms, the development of serious injuries, and lost-time claims;

(4) a process for employees to provide possible solutions that may be implemented to reduce, control, or eliminate workplace musculoskeletal disorders;

(5) procedures to ensure that physical plant modifications and major construction projects are consistent with program goals; and

(6) annual evaluations of the ergonomics program and whenever a change to the work process occurs.

Subd. 3. Annual evaluation of program required. There must be an established procedure to annually assess the effectiveness of the ergonomics program, including evaluation of the process to mitigate work-related risk factors in response to reporting of symptoms of musculoskeletal disorders by employees. The annual assessment shall determine the success of the implemented ergonomic solutions and whether goals set by the ergonomics program have been met.

Subd. 4. Employee training. (a) An employer subject to this section must train all employees on the following:

(1) the name of each individual on the employer's safety committee;

(2) the facility's ergonomic program;

(3) the early signs and symptoms of musculoskeletal injuries and the procedures for reporting them;

(4) the procedures for reporting injuries and other hazards;

(5) any administrative or engineering controls related to ergonomic hazards that are in place or will be implemented for their positions; and

(6) the requirements of subdivision 9.

(b) New employees must be trained according to paragraph (a) prior to starting work. Current employees must receive initial training and ongoing annual training in accordance with the employer's ergonomics program. The employer must provide the training during working hours and compensate

the employee for attending the training at the employee's standard rate of pay. All training must be in a language and with vocabulary that the employee can understand.

(c) Updates to the information conveyed in the training shall be communicated to employees as soon as practicable.

Subd. 5. Involvement of employees. Employers subject to this section must solicit feedback for its ergonomics program through its safety committee required by section 182.676, in addition to any other opportunities for employee participation the employer may provide. The safety committee must be directly involved in ergonomics worksite assessments and participate in the annual evaluation required by subdivision 3.

Subd. 6. Workplace program or AWAIR. An employer subject to this section must reference its ergonomics program in a written Workplace Accident and Injury Reduction (AWAIR) program required by section 182.653, subdivision 8.

Subd. 7. Recordkeeping. An employer subject to this section must maintain:

(1) a written certification dated and signed by each person who provides training and containing the name and job title of each employee who receives training pursuant to this section. The certifications must include the date training was conducted. The certification completed by the training providers must state that the employer has provided training consistent with the requirements of this section and include a brief summary or outline of the information that was included in the training session;

(2) a record of all worker visits to on-site medical or first aid personnel for the last five years, regardless of severity or type of illness or injury; and

(3) a record of all musculoskeletal disorders suffered by employees for the last five years.

Subd. 8. Availability of records. (a) The employer must ensure that the certification records required by subdivision 7, clause (1), are up to date and available to the commissioner, employees, and authorized employee representatives, if any, upon request.

(b) Upon the request of the commissioner, an employee who is a member of the facility's safety committee, or an authorized employee representative, the employer must provide the requestor a redacted version of the medical or first aid records and records of all musculoskeletal disorders. The name, contact information, and occupation of an employee, and any other information that would reveal the identity of an employee, must be removed in the redacted version. The redacted version must only include, to the extent it would not reveal the identity of an employee, the location where the employee worked, the date of the injury or visit, a description of the medical treatment or first aid provided, and a description of the injury suffered.

(c) The employer must also make available to the commissioner and the employee who is the subject of the records the unredacted medical or first aid records and unredacted records of musculoskeletal disorders required by subdivision 7, clause (2), upon request.

Subd. 9. Reporting encouraged. Any employer subject to this section must not institute or maintain any program, policy, or practice that discourages employees from reporting injuries, hazards, or safety and health standard violations, including ergonomic-related hazards and symptoms of musculoskeletal disorders.

Subd. 10. Training materials. The commissioner shall make training materials on implementation of this section available to all employers, upon request, at no cost as part of the duties of the commissioner under section 182.673.

Subd. 11. Enforcement. This section shall be enforced by the commissioner under sections 182.66 and 182.661. A violation of this section is subject to the penalties provided under section 182.666.

Subd. 12. Grant program. (a) The commissioner shall establish an ergonomics grant program to provide matching funding for employers who are subject to this section to make ergonomic improvements recommended by an on-site safety survey. Minnesota Rules, chapter 5203, applies to the administration of the grant program.

(b) To be eligible for a grant under this section, an employer must:

(1) be a licensed health care facility, warehouse distribution center, or meatpacking site as defined by subdivision 1;

(2) have current workers' compensation insurance provided through the assigned risk plan, provided by an insurer subject to penalties under chapter 176, or as an approved self-insured employer; and

(3) have an on-site safety survey with results that recommend specific equipment or practices that will reduce the risk of injury or illness to employees and prevent musculoskeletal disorders. This survey must have been conducted by a Minnesota occupational safety and health compliance investigator or workplace safety consultant, an in-house safety and health committee, a workers' compensation insurance underwriter, a private consultant, or a person under contract with the assigned risk plan.

(c) Grant funds may be used for all or part of the cost of the following:

(1) purchasing and installing recommended equipment intended to prevent musculoskeletal disorders;

(2) operating or maintaining recommended equipment intended to prevent musculoskeletal disorders;

(3) property, if the property is necessary to meet the recommendations of the on-site safety survey that are related to prevention of musculoskeletal disorders;

(4) training required to operate recommended safety equipment to prevent musculoskeletal disorders; and

(5) tuition reimbursement for educational costs related to identifying ergonomic-related issues that are related to the recommendations of the on-site safety survey.

(d) The commissioner shall evaluate applications, submitted on forms developed by the commissioner, based on whether the proposed project:

(1) is technically and economically feasible;

(2) is consistent with the recommendations of the on-site safety survey and the objective of reducing risk of injury or illness to employees and preventing musculoskeletal disorders;

(3) was submitted by an applicant with sufficient experience, knowledge, and commitment for the project to be implemented in a timely manner;

(4) has the necessary financial commitments to cover all project costs;

(5) has the support of all public entities necessary for its completion; and

(6) complies with federal, state, and local regulations.

(e) Grants under this section shall provide a match of up to $10,000 for private funds committed by the employer to implement the recommended ergonomics-related equipment or practices.

(f) Grants will be awarded to all applicants that meet the eligibility and evaluation criteria under paragraphs (b), (c), and (d) until funding is depleted. If there are more eligible requests than funding, awards will be prorated.

(g) Grant recipients are not eligible to apply for another grant under chapter 176 until two years after the date of the award.

Subd. 13. Standard development. The commissioner may propose an ergonomics standard using the authority provided in section 182.655.

EFFECTIVE DATE. This section is effective January 1, 2024, except subdivisions 9 and 12 are effective July 1, 2023.

Minnesota Secure Choice retirement program

2023 Regular Session

HF782/SF413

Chapter 46

Minnesota Secure Choice Retirement Program

Effective: Various

Short description

Requires the board of directors of the Minnesota Secure Choice retirement program to operate an employee retirement savings program. The program must begin by October 1, 2024.

Summary

Under the program, employee payroll deduction contributions are transmitted on an after-tax basis by covered employers to individual retirement accounts established under the program. Requires the board to establish procedures for opening a Roth IRA, a traditional IRA, or both a Roth IRA and a traditional IRA for each covered employee whose covered employer transmits employee payroll deduction contributions under the program. Contributions must be made on an after-tax basis unless the covered employee elects to contribute on a pre-tax basis.

The program defines a covered employee and covered employer:

• "Covered employee" means a person who is employed by a covered employer and who satisfies any other criteria established by the board. Covered employee does not include:

o a person who, on December 31 of the preceding calendar year, was younger than 18 years of age;

o a person covered under the federal Railway Labor Act, as amended, United States Code, title 45, sections 151 et seq.;

o a person on whose behalf an employer makes contributions to a Taft-Hartley multiemployer pension trust fund; or

o a person employed by the government of the United States, another country, the state of Minnesota, another state, or any subdivision thereof.

• Covered employer. (a) "Covered employer" means a person or entity:

o engaged in a business, industry, profession, trade, or other enterprise in Minnesota, whether for profit or not for profit;

o that employs five or more covered employees; and

o that does not sponsor or contribute to and did not in the immediately preceding 12 months sponsor or contribute to a retirement savings plan for its employees.

• Covered employer does not include:

o an employer that has not engaged in a business, industry, profession, trade, or other enterprise in Minnesota, whether for profit or not for profit, at any time during the immediately preceding 12 months; and

o a state or federal government or any political subdivision thereof.

Subd. 1 [Program established] requires the board of directors of the Minnesota Secure Choice retirement program to operate an employee retirement savings program. The program must begin by October 1, 2024. Under the program, employee payroll deduction contributions are transmitted on an after-tax basis by covered employers to individual retirement accounts established under the program Requires the board to establish procedures for opening a Roth IRA, a traditional IRA, or both a Roth IRA and a traditional IRA for each covered employee whose covered employer transmits employee payroll deduction contributions under the program. Contributions must be made on an after-tax basis, unless the covered employee elects to contribute on a pre-tax basis.

Subd. 2. [Compliance with Internal Revenue Code] requires the board to establish and administer the Roth IRAs and traditional IRAs opened under the program in compliance with the federal tax code, for the benefit of covered employees.

Subd. 3 [Contributions held in trust] requires covered employers to transmit employee payroll deduction contributions to an account for the employee’s benefit in a trust.

Subd. 4 [Contribution rate] requires the board to establish default, minimum, and maximum employee contribution rates and an escalation schedule that increases each employee’s contribution rate annually and automatically until the rate reaches the maximum contribution rate, unless the covered employee elects a lower contribution rate or opts out or ceases contributions.

Subd. 5 [Vesting] specifies that employees are 100 percent vested in their accounts at all times.

Subd. 6. [Withdrawals and distributions] requires the board to establish alternatives that allow employees to withdraw all or a portion of the employee’s account while employed or one or more distributions following termination of employment. Distribution alternatives must include lifetime income options.

Subd. 7 [Individuals not employed by a covered employer] requires the board to allow individuals to open and contribute to an account in the program outside of an employment relationship with a covered employer. The individual would be treated like a covered employee for purposes of this act.

Section 5 [Responsibilities of Covered Employers; §187.07]

Subd. 1 [Requirement to enroll employees] requires each covered employer to enroll covered employees in the program and to withhold payroll deduction contributions from the employee’s paycheck unless the employee elects not to contribute.

Subd. 2 [Remitting contributions] requires employers to remit contributions timely as required by the board. Requires the board to establish penalties for failing to remit contributions timely.

Subd. 3 [Distribution of information] requires covered employers to provide information prepared by the board to all covered employees regarding the program at least 30 days before the first paycheck from which contributions could be deducted for transmittal to the program if the employee does not elect to opt out.

Subd. 4 [No fiduciary responsibility] limits an employer’s responsibilities to enrolling employees, remitting contributions, and distributing information about the program. Specifies that employers are not fiduciaries under the program or in connection with the trust. Employers are not responsible for administration, investment performance, plan design, or benefits paid to employees.

Subd. 5 [Employer liability] makes employers not liable to an employee for damages alleged to have resulted from the employee’s participation in or failure to participate in the program.

Subd. 6 [Enforcement] authorizes the attorney general to enforce the chapter. The attorney general may impose periodic penalties established by the board against an employer that fails to comply with responsibilities under this section. Proceeds from the penalties, after deducting enforcement expenses, must be deposited in the administrative fund, and are appropriated to the program. Requires the board to provide written warnings for the first year before assessing penalties.

Implications

If you currently do not have an employee retirement savings plan, as this program gets up and running, you will need to monitor the requirements of this alternative.

Bill language

Chapter 46: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/46/

Nursing & pregnant mothers

2023 Regular Session

SF3035/HF3028

Chapter 53, Article 11, Section 27

Jobs, Economic Development, Labor, and Industry omnibus bill

Effective: July 1, 2023

Short description

This new law increases protection for nursing mothers and lactating employees under § 181.939.

Summary

Previously, § 181.939 limited the requirement to provide break times for employees needing to express breast milk to only the 12 months after birth, but the law amends the provision by removing the 12month limitation. The law also now permits that break times used for expressing breast milk can run concurrently with other breaks, but that they are not required to do so. In addition, the amendments also remove language that previously allowed employers to deny employees a break to express milk if it would “unduly disrupt operations.”

The law also includes increased protections under pregnancy accommodation provisions. For example, the law amends the provision to provide that pregnancy accommodations not requiring a healthcare provider’s certification include not only more frequent restroom, food, and water breaks, but also longer restroom, food, and water breaks. Further, reasonable accommodations for employers to consider should include a temporary leave of absence, modification of work schedules or job assignments, and providing longer break periods (in addition to seating or lifting-related accommodations, which are already identified in the existing statute).

Finally, notice provisions have also been added, which require employers to inform employees of their rights under the law at the time of hire and when an employee makes an inquiry about or requests parental leave. The information must be provided in English and the employee’s primary language. Employers that maintain a handbook must include the notice explaining their rights under the law. The state will make sample text available to employers in the five most common languages in Minnesota.

The amendments go into effect July 1, 2023.

Implications

Effective July 1, 2023, employers will no longer be able to deny breaks for expressing milk if it would “unduly disrupt operations ” Also, you will be required to inform employees of their rights under the law in English and the employees’ primary language and include in your handbooks.

Bill language

Chapter 53, Article 11, Section 27: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/53/

Paid family leave

2023 Regular Session

HF2/SF2

Chapter 59

Effective: Various

Short description

Establishes a state-run paid family leave program. Starting January 1, 2026, nearly all private and public sector employees will be eligible for a partial wage replacement to support up to 12 weeks of paid medical leave, including for pregnancy and childbirth and 12 weeks paid for other kinds of family leave, including parental leave, caregiving leave, safety leave, and deployment-related leave.

Summary

Paid family and medical leave (PFML), a top priority for the DFL majority, passed in the final days of session. This state-administered, mandatory program is modeled after the state’s unemployment insurance program and will be administered by the Minnesota Department of Employment & Economic Development (DEED). Minnesota becomes the twelfth state to implement a mandatory paid family and medical leave program.

Starting January 1, 2026, nearly all private and public sector employees will be eligible for a partial wage replacement to support up to 12 weeks of paid medical leave, including for pregnancy and childbirth, and 12 weeks paid for other kinds of family leave, including parental leave, caregiving leave, safety leave, and deployment-related leave. Employees who need leave from both categories can take up to 20 weeks total in a benefit year. Family members include an employee’s spouse or domestic partner, child, parent, sibling, grandchild, or grandparent, along with individuals who have a relationship with the applicant that creates an expectation and reliance that the applicant care for the individual, whether or not the applicant and the individual reside together. Employees hired at least 90 days prior to their leave have the right to get their job back or an equivalent job.

To ensure the PFML program is up and running and benefits are available starting January 1, 2026, the legislation includes a $648 million appropriation to DEED. Thereafter, the program will be funded with payroll taxes split evenly between the employer and employee. Initially, the rate will be 0.7% with rates later being adjusted annually based on program usage. Employers with fewer than 30 employees will pay a reduced rate. Employers can opt out of paying into the state program if their private benefit plan meets or exceeds the benefits provided under the state’s PFML program.

Implications

There will be payroll implications beginning January 1, 2026; the initial rate will be 0.7%, to be split evenly between employer and employee, although employers with fewer than 30 employees will have reduced rates. Employers can opt out of paying into the state program if their private benefit plan meets or exceeds the benefits provided under the state paid family leave plan.

Bill language

Chapter 59: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/59/

Unemployment appeals

2023 Regular Session

SF2369/HF1922

Chapter 33, Sections 7-24

Economic development omnibus bill

Effective: May 5, 2024

Short description

Changes the timeframe to allow most items in the unemployment insurance arena from 20 calendar days to 45 calendar days.

Summary

Changed the timeframe from 20 calendar days to 45 calendar days on all of the following:

• Determinations of coverage

• Determinations of tax rates

• Determinations and appeals

• Determination and right to hearing

• Personal liability

• Reasonable value

• Determination of liability

• Right of appeal

• Determinations

• Amended determinations

• Decisions

• Requests for reconsideration

• Withdrawal of appeal

• Judicial review

• Overpayment because of misrepresentation

• Applicant administrative penalties

• Misrepresentation administrative penalties

• Notification and misreporting penalties

Bill language

Chapter 33, Sections 7-24: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/33/

Wage disclosure protections

2023 Regular Session

SF3035/HF3028

Chapter 53, Article 11, Section 26

Jobs, Economic Development, Labor, and Industry omnibus bill

Effective: July 1, 2023

Short description

Amending the current wage disclosure protection law, prohibiting employers from inquiring into, considering, or requiring disclosure from any source of the pay history of a job applicant for the purpose of determining the applicant’s compensation or benefits.

Summary

The law amends the current Wage Disclosure Protection law, and now prohibits employers from inquiring into, considering, or requiring disclosure from any source of the pay history of a job applicant for the purpose of determining the applicant’s compensation or benefits. The law now also prohibits employers from discriminating against an employee for asserting rights under the law, for example, by refusing to provide past salary information.

The amendment goes into effect July 1, 2023.

Implications

Effective July 1, 2023, you may not inquire into, consider, or require disclosure from any source of the pay history of a job applicant for the purpose of determining the applicant’s compensation or benefits. The law now also prohibits employers from discriminating against an employee for asserting rights under the law, for example, by refusing to provide past salary information.

Bill language

Chapter 53, Article 11, Section 23: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/53/

Workers’ compensation changes

2023 Regular Session

HF2988/SF3193

Chapter 51

Effective: Various

Short description

2023 Workers' Compensation Advisory Committee recommendations were adopted these provisions include changes to: workers' compensation self-insurance, system efficiencies improved, permanent partial disability schedule, post-traumatic stress disorder study and report required, housekeeping changes made.

Summary

Periodically, the workers’ compensation advisory board brings forward suggested changes to workers compensation laws that have been worked out within the advisory board. Because the advisory committee is made up of both workers and employers, the differences are usually worked out behind the scenes and then legislatively enacted.

This year’s main changes have to do with private, self-insurers. The changes included modifying to not limit the commissioner’s ability to act under bankruptcy and instead replace the language with a new section regarding bankruptcy and the utilization of a security deposit for a private-self insurer.

There were some “system efficiencies” added that will put precise timeframes around the process and procedures withing the workers compensation hearings. Further, they clarified the nonemergency surgery second opinion sections with timeframes. They also clarified the medical bills and records portions with clarification of the charges and fees for the records. Also, they clarified some of the timeframes for the employer’s physician roles and timeframes

The permanent partial disability compensation schedule was updated and will take effect October 1 2023, as well as updating the hospital outpatient fee schedule.

Finally, they included a study by the commissioner of DLI to conduct a study to identify systemic or regulatory changes to improve the experience and outcomes of the employees with work-related posttraumatic stress disorder. The study includes an appropriation that is available until June 30, 2026

Implications

Major changes if you are self-insured for workers’ compensation, especially regarding bankruptcy or insolvency. Other changes will be reflected in your workers’ compensation insurance rates.

Bill language

Chapter 51: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/51/

STUDIES

Healthcare entity transactions

2023 Regular Session

HF402/SF1681

Chapter 66

Effective: Day following enactment and various

Short description

This bill establishes notice and review requirements for healthcare entities seeking to enter into a transaction and authorizes the attorney general to seek relief if a healthcare entity or transaction violates the notice and review requirements or is contrary to the public interest.

It also extends the moratorium on conversion transactions by nonprofit service plan corporations and nonprofit health maintenance organizations to July 1, 2026; requires an amount equal to the value of certain charitable assets held by a health system or nonprofit HMO to be deposited in the general fund in certain circumstances; limits the ownership or control of University of Minnesota healthcare facilities; requires the commissioner of health to study and develop recommendations on the regulation of transactions involving nonprofit and for-profit health maintenance organizations; and appropriates money to the commissioner of health.

Summary

Restricted uses of the all-payer claims data. Amends § 62U.04, subd. 11. Modifies the allowable uses of data in the all-payer claims database, to allow the commissioner to use the data to analyze the impact of healthcare transactions on healthcare costs, market consolidation, and quality.

Requirements for certain healthcare entity transactions. Adds § 145D.01. Establishes notice and review requirements for healthcare entities seeking to enter into a transaction that meets certain criteria and authorizes the attorney general to seek relief if a health care entity or transaction violates this section or is contrary to the public interest.

Subd. 1. Definitions. Defines terms for this section: captive professional entity, commissioner, health care entity, health care provider, health care group practice, hospital, medical foundation, and transaction. Also lists actions that are not included in the definition of transaction.

Subd. 2. Notice required. Para. (a) provides the notice requirements in this subdivision apply to a transaction in which the healthcare entity involved in the transaction has average revenue of at least $40,000,000 per year, or an entity created by the transaction is projected to have average revenue of at least $40,000,000 per year.

Para. (b) requires a healthcare entity, at least 60 days before the proposed completion date of a transaction, to provide notice to the attorney general and the commissioner of health and comply with this subdivision.

Para. (c) requires a healthcare entity to affirmatively disclose the listed information to the attorney general and commissioner, at least 60 days before the proposed completion date of the transaction.

Para. (d) requires a healthcare entity to affirmatively submit the listed documents to the attorney general and commissioner, at least 60 days before the proposed completion date of the transaction.

Paras (e) and (f) allow the attorney general to extend or waive the notice and waiting period.

Para. (g) allows the attorney general or commissioner to hold public listening sessions to obtain input on the transaction.

Para. (h) allows the attorney general or commissioner to bring an action in district court to compel compliance with the notice requirements.

Subd. 3. Prohibited transactions. Prohibits a healthcare entity from entering into a transaction that will substantially lessen competition or tend to create a monopoly or monopsony.

Subd. 4. Additional requirements for nonprofit healthcare entities. Requires a nonprofit healthcare entity, or a subsidiary of a nonprofit healthcare entity, to comply with the listed requirements before entering into a transaction.

Subd. 5. Attorney general enforcement and supplemental authority. Allows the attorney general to bring an action in district court to enjoin or unwind a transaction or seek other relief if a healthcare entity or transaction violates this section, if the transaction is contrary to the public interest, or both. Lists factors informing whether a transaction is contrary to the public interest. Allows the attorney general to enforce this section under section 8.31 (this section includes attorney general authority to investigate violations of law, seek injunctive relief, H.F. 402 and impose civil penalties). States that a court may enjoin a transaction or provide other relief if the entities involved in the transaction do not provide information required by the attorney general or commissioner. Requires the commissioner to provide certain data and research to the attorney general, upon request, for the attorney general to use when determining whether a transaction is contrary to the public interest.

Subd. 6. Supplemental authority of commissioner. Allows the commissioner to use data submitted under this section or under other law to analyze the impact of healthcare transactions on healthcare access, market consolidation, and healthcare quality. Requires the commissioner to issue periodic public reports on transactions subject to this section and their impacts on healthcare cost, quality, and competition.

Subd. 7. Classification of data. Para. (a) classifies data provided by a healthcare entity to the attorney general and commissioner under this section as protected nonpublic data or confidential data on individuals, and allows the attorney general or commissioner to make this data public in certain circumstances.

Para. (b) classifies data exchanged between the attorney general and commissioner under subdivision 5 as confidential data on individuals or protected nonpublic data and allows the commissioner to share not public data with the attorney general.

Subd. 8. Relation to other law. Provides the powers and authority under this section are in addition to the rights, powers, and authority in other law, and provides nothing in this section suspends obligations imposed by other laws on entities involved in a transaction. This section is effective the day following final enactment and applies to transactions completed on or after that date.

Section 3. Data reporting of certain healthcare transactions defines that the section applies to health care entities that average revenue between $10 million and $80 million per year or that it will have between $10 million and $80 million per year in revenue once operating at full capacity. Further defines what data must be provided to the commissioner at least 30 days before completion of the transaction, or within 10 days business days of the parties first reasonably anticipating entering into the transaction if expected completion less than 30 days.

Section 4. University of Minnesota healthcare facilities; ownership or control. States that the importance of the University of Minnesota healthcare facilities to the state must be recognized and requires the University of Minnesota healthcare facilities to remain dedicated to the university’s public healthcare mission. Prohibits the University of Minnesota healthcare facilities from being owned or controlled by a for-profit entity or out-of-state entity, unless the attorney general, in consultation with the commissioner of health and Board of Regents, determines ownership or control by a for-profit entity or out-of-state

entity is in the public interest. This section is effective the day following final enactment and applies to the specified transactions completed on or after that date.

Moratorium on conversion transactions. Amends Laws 2017, First Special Session Ch. 6, Art. 5, § 11, as amended. Extends the date for the expiration of the moratorium on conversion transactions by nonprofit service plan corporations or nonprofit health maintenance organizations to July 1, 2026. (In current law the moratorium expires July 1, 2023.) This section is effective the day following final enactment.

Study and recommendations; nonprofit health maintenance organization conversions and other transactions. Requires the commissioner of health to study and make recommendations on the regulation of conversions, mergers, transfers of assets, and other transactions affecting nonprofit and for-profit health maintenance organizations. Lists elements the recommendations must address. In conducting the study, allows the commissioner to use data the commissioner already holds from health maintenance organizations or health carriers, and to collect additional data from health maintenance organizations and related companies. Classifies data collected by the commissioner. Requires the commissioner to seek public comments on the regulation of conversion transactions. Allows the commissioner to use existing enforcement authority if a health maintenance organization fails to comply with a request for information. Requires preliminary findings to be submitted to certain members of certain legislative committees by January 15, 2024, and requires a final report to be submitted to the legislature by June 30, 2024.

Implications

Depending on the scope and size of transactions there may be implications for future purchases and sales of healthcare entities.

Bill language

Chapter 66: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/66/

Legislative Task Force on Aging

2023 Regular Session

HF1830/SF1426

Chapter 62, Article 2, Section 120

State Government and Elections omnibus budget bill

Effective: July 1, 2023

Short description

A legislative task force will be reviewing how the state’s various agencies address aging-related issues, and develop recommendations on what governmental entity should plan, lead, and implement the policies and funding for aging Minnesotans in the future

Summary

The Minnesota Board on Aging (MBA) is a 25-member governor-appointed board charged with advising on and coordinating government plans around aging to ensure that Older American’s Act requirements are met. The MBA administers state and federal funds and creates public awareness, encourages research on aging issues, and provides technical assistance and grants to local aging organizations. As part of the Older Americans Act, each state submits a State Plan on Aging to the US Department of Health and Human Services Administration on Community Living (ACL) every four years the Board on Aging is responsible for that submission (https://mn.gov/board-on-aging/) The Board on Aging is “housed” within the Department of Human Services, which has at times generated criticism related to potential conflicts of interest on funding programs. During the past few years MBA was involved in strategic planning work which generated internal dissention during those discussions among Board members. Several MBA members were removed from the board; those members advocated for this legislative task force, with the belief that the legislative recommendation would set up an entirely different structure for leading the state’s work on aging

Bill Language

Chapter 62, Article 2, Section 120: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/62/

Sec. 120. LEGISLATIVE TASK FORCE ON AGING.

Subdivision 1. Establishment. A legislative task force is established to:

(1) review and develop state resources for an aging demographic;

(2) identify and prioritize necessary support for an aging population through statewide and local endeavors for people to remain in their communities; and

(3) ensure all aging-related state policies are inclusive of race, gender, ethnicity, culture, sexual orientation, abilities, and other characteristics that reflect the full population of the state.

Subd. 2. Duties. The task force shall review:

(1) all current aging-related governmental functions, programs, and services across all state departments;

(2) the current plans to improve health and support services workforce demographics;

(3) current public and private strategies to:

(i) support family caregivers for older adults;

(ii) define and support quality of care and life improvements in long-term care and home care; and

(iii) sustain neighborhoods and communities for an aging population;

(4) the necessity for planning and investment in aging in Minnesota to address:

(i) the longevity economy and the impact it has on the workforce, advancing technology, and innovations;

(ii) housing options, land use, transportation, social services, and the health systems;

(iii) availability of safe, affordable rental housing for aging tenants; and

(iv) coordination between health services and housing supports;

(5) coordination across all state agencies, Tribal Nations, cities, and counties to encourage resolution of aging related concerns; and

(6) from this review, determine the governmental entity to plan, lead, and implement these recommended policies and funding for aging Minnesotans across the state.

Subd. 3. Membership. (a) The task force shall include the following members:

(1) two members from the house of representatives, one appointed by the speaker of the house and one appointed by the minority leader;

(2) two members from the senate, one appointed by the majority leader and one appointed by the minority leader;

(3) the chair of the Minnesota Board on Aging, or a board member as designee;

(4) the chair of the Minnesota Council on Disability, or an agency employee as designee;

(5) the chair of the Minnesota Indian Affairs Council, or a council member, except the legislative council member, as designee; and

(6) the director of the University of Minnesota Center for Healthy Aging and Innovation, or a University of Minnesota employee as a designee.

(b) The speaker of the house and the senate majority leader shall appoint a chair and a vicechair for the membership of the task force. The chair and the vice-chair shall rotate after each meeting.

Subd. 4. Meetings. (a) The task force shall meet at least once per month. The meetings shall take place in person in the Capitol complex, provided that the chair may direct that a meeting be conducted electronically if doing so would facilitate public testimony or would protect the health or safety of members of the task force.

(b) The task force shall invite input from the public, the leadership of advocacy groups, and provider organizations.

(c) The chair designated by the speaker of the house shall convene the first meeting of the task force no later than August 1, 2023.

Subd. 5. Expenses; per diem. Members serving on the task force shall receive the following per diem:

(1) the Board on Aging task force member who is a volunteer citizen member shall receive the per diem listed in Minnesota Statutes, section 15.059, subdivision 3;

(2) the Council on Disability task force member shall not receive a per diem;

(3) the Indian Affairs Council task force member who is a citizen member shall receive the per diem listed in Minnesota Statutes, section 15.059, subdivision 3;

(4) the University of Minnesota task force member shall not receive a per diem; and

(5) legislative members of the task force shall not receive a per diem.

Subd. 6. Report. The task force shall submit a report with recommendations to the chairs and ranking minority members of the legislative committees with jurisdiction over health and human services finance and policy and state government by January 15, 2025.

Subd. 7. Expiration. The task force expires January 31, 2025.

EFFECTIVE DATE. This section is effective July 1, 2023, or when the legislative leaders required to make appointments to the task force name appointees beginning the day after final enactment

Long COVID & related conditions assessment & monitoring

2023 Regular Session

SF2995/HF2930

Chapter 70, Article 4, Section 50

Health omnibus bill

Effective: July 1, 2023

Short description

Minnesota Department of Health (MDH) is tasked with establishing a new program to conduct community assessments and epidemiologic investigations to monitor and address impacts of long COVID and related conditions.

Implications

Long-term care providers (individually and/or as a member of an association) will be included in this work as a partner; we could also qualify to apply for the grants; and will be the recipient of the information and resources that are developed to share with residents/staff.

Bill language

Chapter 70, Article 4, Section 50: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/70/

Sec. 50. [145.361] LONG COVID AND RELATED CONDITIONS; ASSESSMENT AND MONITORING.

Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have the meanings given.

(b) "Long COVID" means health problems that people experience four or more weeks after being infected with SARS-CoV-2, the virus that causes COVID-19. Long COVID is also called postCOVID conditions, long-haul COVID, chronic COVID, post-acute COVID, or post-acute sequelae of COVID-19 (PASC).

(c) "Related conditions" means conditions associated with or sequelae of long COVID, including but not limited to myalgic encephalomyelitis/chronic fatigue syndrome (ME/CFS) and dysautonomia, and postural orthostatic tachycardia syndrome (POTS).

Subd. 2. Establishment. The commissioner of health shall establish a program to conduct community assessments and epidemiologic investigations to monitor and address impacts of long COVID and related conditions. The purposes of these activities are to:

(1) monitor trends in: incidence, prevalence, mortality, and health outcomes; changes in disability status, employment, and quality of life; and service needs of individuals with long COVID or related conditions and to detect potential public health problems, predict risks, and assist in investigating long COVID and related conditions health inequities;

(2) more accurately target information and resources for communities and patients and their families;

(3) inform health professionals and citizens about risks and early detection;

(4) promote evidence-based practices around long COVID and related conditions prevention and management and to address public concerns and questions about long COVID and related conditions; and

(5) research and track related conditions.

Subd. 3. Partnerships. The commissioner of health shall, in consultation with health care professionals, the commissioner of human services, local public health entities, health insurers, employers, schools, survivors of long COVID or related conditions, and community organizations serving people at high risk of long COVID or related conditions, identify priority actions and activities to

address the needs for communication, services, resources, tools, strategies, and policies to support survivors of long COVID or related conditions and their families.

Subd. 4. Grants and contracts. The commissioner of health shall coordinate and collaborate with community and organizational partners to implement evidence-informed priority actions through community-based grants and contracts. The commissioner of health shall award grants and enter into contracts to organizations that serve communities disproportionately impacted by COVID-19, long COVID, or related conditions, including but not limited to rural and low-income areas, Black and African Americans, African immigrants, American Indians, Asian American-Pacific Islanders, Latino(a) communities, LGBTQ+ communities, and persons with living disabilities. Organizations may also address intersectionality within the groups. The commissioner shall award grants and award contracts to eligible organizations to plan, construct, and disseminate resources and information to support survivors of long COVID or related conditions, including caregivers, health care providers, ancillary health care workers, workplaces, schools, communities, and local and Tribal public health.

Nursing facility rate system to be studied

2023 Regular Session

SF2934/HF2847

Chapter 61, Article 2, Section 41 Human Services omnibus bill

Effective: August 1, 2023

Short description

The Minnesota Department of Human Services (DHS) is directed to contract with a consultant to study Minnesota nursing facility rate system used for Medicaid and private pay.

Summary

The 2023 legislative session was filled with many conversations about nursing facility reimbursement. Unfortunately, many of those conversations began with profound misunderstanding of nursing facility reimbursement policy, DHS forecasting, cost reporting, and rate setting.

Near the end of the legislative session, language and funding for a nursing facility rate system study was approved.

DHS is directed to contract with an independent organization with subject matter expertise in nursing facility accounting. Areas of study will include:

• Border state rates as well as rates for states in the Centers for Medicare & Medicaid Services Region V

• Net income and the operating margin

• Revenue and operating expenses

• The average rate per resident day in each state and the data used to compute that rate

• Facility level data

Implications

DHS will submit a report to the legislature by January 1, 2025. Care Providers of Minnesota will monitor the study’s progress and participate in any public meetings.

Bill language

Chapter 61, Article 2, Section 41: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

Sec. 41. NURSING FACILITY RATE STUDY.

(a) The commissioner of human services shall contract with an independent organization with subject matter expertise in nursing facility accounting to conduct a study of nursing facility rates that includes:

(1) a review of nursing facility rates of all states bordering Minnesota and the states included in the Centers for Medicare and Medicaid Services Region V;

(2) the data necessary to determine the total net income and the operating margin of a nursing facility;

(3) the data necessary to determine whether a nursing facility can generate sufficient revenue to cover the nursing facility's operating expenses;

(4) the average reimbursement rate per resident day in each state and the data used to compute that rate;

(5) facility-level data on all types of Medicaid payments to nursing facilities, including but not limited to:

(i) supplemental rate add-ons;

(ii) rate components;

(iii) data on the sources of the nonfederal share of spending necessary to determine the net Medicaid payment at the facility level; and

(iv) disclosure of transactions from a related party; and

(6) any other information determined necessary by the commissioner to complete the study.

(b) Upon request, a nursing facility must provide information to the commissioner pertaining to the nursing facility's financial operations.

(c) By January 1, 2025, the commissioner shall submit a report to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over human services policy and finance recommending adjustments to the nursing facility rate methodology under Minnesota Statutes, chapter 256R, based on the results of the study in paragraph (a). The commissioner shall consult with the Office of the Legislative Auditor Financial Audit Division and Program Evaluation Division on study design methods.

Presumptive eligibility study for long-term services & supports

2023 Regular Session

SF2934/HF2847

Chapter 61, Article 1, Section 81

Human Services omnibus bill

Effective: August 1, 2023

Short description

The Minnesota Department of Human Services (DHS) is required to study presumptive functional eligibility for people with disabilities and older adults for MA, alternative care, essential community supports, and home- and community-based services.

Summary

States can authorize “qualified entities” healthcare providers, community-based organizations, and schools, etc. to screen for Medicaid eligibility and immediately approve those who appear to be eligible. Presumptive eligibility allows people to get access to Medicaid or CHIP services without having to wait for their application to be fully processed.

While Minnesota does have presumptive eligibility for children, there is no presumptive eligibility for Medicaid for persons with disabilities or older adults.

DHS will focus their study of presumptive eligibility on people with disabilities and older adults for MA, alternative care, essential community supports, and home- and community-based services. Topics will include:

• current eligibility processes;

• barriers to timely eligibility determinations; and

• strategies to enhance access to home- and community-based services in the least restrictive setting.

By January 1, 2025, the commissioner must report recommendations and draft legislation to the chairs and ranking minority members of the legislative committees with jurisdiction over Health and Human Services Finance and Policy.

Implications

Care Providers of Minnesota will monitor and participate in the study and report any finding to the membership.

Bill language

Chapter 61, Article 1, Section 81: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

Vulnerable Adult Act redesign 2023 Regular Session

SF2934/HF2847

Chapter 61, Article 9, Subdivision 14

Human Services omnibus bill

Effective: July 1, 2023

Short description

Vulnerable Adult Act Redesign Phase Two was funded at $17,129,000 in FY2024 for adult protection grants to counties and Tribes under Minnesota Statutes, section 256M.42. These funds are available until June 30, 2027. The budget includes the largest investments in Adult Protection Services (APS) systems to counties since the creation of the Vulnerable Adult Act. State funding for county Adult Protection Services will more than double going forward. Over $30 million dollars was invested to permanently increase state funding to county adult protection services.

Summary

The Vulnerable Adult Act (VAA), Minnesota (§626.557), was passed in 1980 and establishes state policy for the protection of vulnerable adults and Minnesota’s adult protection system (APS). The decision to explore redesigning the VAA reflects the changing demographics in our state as well as recognition of the challenges within the current statute. The Vulnerable Adult Act has gone through several redesigns over the past years, starting with Phase 1 work which began in 2019 to Phase 2 work, funded by this legislation (https://bit.ly/3PtZpHi). Several of the changes adopted in Phase 2 of the redesign work include the following:

• Increases the amount of state grant dollars from $3 million a year to $7.5 million a year for the next four years. In addition, it provides $15 million in one-time dollars for technology and other improvements.

• Clarifies the uses for the APS grant money, including for county multidisciplinary teams (new to explicitly say this can be funded): to stop, prevent, and reduce risks of maltreatment for adults accepted for services under section 626.557, or for multidisciplinary teams under section 626.5571

• Funds must be used to expand and not supplant current APS services at county levels: State money must be used to expand, not supplant, county or Tribal expenditures for the fiscal year 2023 base for adult protection programs, service interventions, or multidisciplinary teams.

• Counties must meet new expectations that will be set by the state. These were not fully laid out yet in the new law and need to be set by the Department of Human Services

o The commissioner must set vulnerable adult protection measures and standards for money received under this section.

• DHS can withhold funding for underperforming counties and require a correction plan:

o The commissioner must require an underperforming county to demonstrate that the county designated money allocated under this section for the purpose required and implemented a reasonable strategy to improve adult protection performance, including the development of a performance improvement plan and additional remedies identified by the commissioner.

Bill language

Chapter 61, Article 9, Subdivision 14: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

TAXES

Child tax credit

2023 Regular Session

HF1938/SF1811

Chapter 64, Article 1, Section 34

Tax omnibus bill

Effective: For tax years beginning after December 31, 2022

Summary

Enacts a child tax credit (CTC) equal to $1,750 per child under 18, with no cap on the number of children. This credit is phased out, along with an amended working family credit, for those with incomes over $35,000 and married filing jointly, or $29,500 for other filers.

Bill language

Chapter 64, Article 1, Section 34: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/64/

Homestead credit/renter’s credit

2023 Regular Session

HF1938/SF1811

Chapter 64, Article 7, Section 9

Tax omnibus bill

Effective: For tax years beginning after December 31, 2022

Summary

The tax bill provides a one-time increase of for the 2022 Homestead Credit Refund (for Homeowners) and Renter's Property Tax Refund (Form M1PR):

• Refunds for homeowners and renters were increased by 20.5%. Taxpayers who already filed a 2022 Form M1PR may see a larger refund than originally claimed. Previously filed returns will be adjusted. The Department of Revenue expects to start issuing the larger refunds in mid-July for renters and mid-September for homeowners.

• Homeowners may now qualify for a special (or "targeting") refund if their property tax increased by more than 6% rather than 12% from 2022 to 2023. More information will be published when available.

The bill also makes other changes to property tax refunds:

• Homestead credit refund: Homeowners who have an individual taxpayer identification number (ITIN), instead of a Social Security Number, can now qualify for homestead status for their residence and claim the refund

• Renter's refund: Starting with rent paid in 2024, renters will claim the refund on their Minnesota income tax return (Form M1); owners and managing agents must provide a certificates of rent paid (CRP) form and submit CRPs to the Department of Revenue by January 31

Bill language

Chapter 64, Article 7, Section 9: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/64/

Modified working family credit

2023 Regular Session

HF1938/SF1811

Chapter 64, Article 1, Section 36

Tax omnibus bill

Effective: For tax years beginning after December 31, 2022

Summary

This bill allows a refundable credit equaling 4% of the first $8,750 of earned income for eligible Minnesota residents. The credit is increased by:

• $925 for a taxpayer with one qualifying older child (age 18 or older)

• $2,100 for a taxpayer with two qualifying older children

• $2,500 for a taxpayer with three or more qualifying older children

The working family credit (WFC) is combined with the Minnesota child tax credit (MCTC) and then phased out together at 12% of income above a certain income threshold.

If the taxpayer has a WFC that includes a qualifying older child and they did not qualify for the MCTC, the phase-out rate is 9% of income above the threshold. Filers with individual income tax identification numbers (ITINs) are now able to claim the WFC.

Bill language

Chapter 64, Article 1, Section 36: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/64/

One-time tax credits

2023 Regular Session

HF1938/SF1811

Chapter 64, Article 1, Section 49

Tax omnibus bill

Effective: Retroactive for tax year beginning after December 31, 2020, and before January 1,2022

Short description

The tax bill included a one-time income tax rebate for tax year 2021. The credit equals $520 for a married couple filing a joint return and $260 for a single filer, head of household, or married taxpayer filing a separate return. If taxpayers have dependents, the credit is increased by $260 per dependent up to an additional maximum credit of $780

Summary

The Minnesota Department of Revenue will send direct tax rebate payments for tax year 2021 to eligible Minnesotans after a recent tax law update. The legislation, signed May 24, 2023, provides payments of:

• $520 for married couples filing a joint return with adjusted gross income of $150,000 or less

• $260 for all other individuals with adjusted gross income of $75,000 or less

• Another $260 for each dependent claimed on your return, up to three dependents ($780)

You do not have to apply for this payment. The Department of Revenue will use previously filed 2021 income tax or property tax refund returns to determine who is eligible and issue payments in early fall. There is no appeals process, and the payment cannot be tracked in our “Where's My Refund?” system.

This payment is not taxable on your Minnesota income tax return and will not be taken to pay any unpaid tax or debts to collect for other agencies. The department requested guidance from the IRS to determine if the rebate is taxable on your federal return, and will relay their decision upon receiving it.

Eligibility

You are eligible if you meet all of the following requirements:

• You were a Minnesota resident for part or all of 2021

• You filed one of the following returns by December 31, 2022:

o 2021 Form M1, Minnesota Individual Income Tax

o 2021 Form M1PR, Homestead Credit Refund (for Homeowners) and Renter’s Property Tax Refund

• Your 2021 adjusted gross income (line 1 of Form M1 or Form M1PR) was:

o $150,000 or less for married joint filers

o $75,000 or less for all other filers

• You were not claimed as a dependent on someone else's 2021 Minnesota income tax return

Taxpayers who died before January 1, 2023, are not eligible.

Part-year residents receive a portion of the refund based on their time in Minnesota.

Bill language

Chapter 64, Article 1, Section 49: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/64/

Social Security changes

2023 Regular Session

HF1938/SF1811

Chapter 64, Article 1, Section 24

Tax omnibus bill

Effective: For tax years beginning after December 31, 2022

Summary

The bill expanded Minnesota’s Social Security subtraction to allow taxpayers to subtract the greater of a new Simplified Method (described below) of calculating the subtraction or Alternative Method (described below), which is similar to the subtraction as it had been calculated under prior law.

For a new “Simplified Method,” taxpayers with adjusted gross income below $100,000 for married joint returns or $78,000 for single or head of household returns are eligible, and the subtraction is phased out by 10% for each $4,000 of adjusted gross income (AGI) in excess of the phase-outs mentioned. For married joint taxpayers, the phase-out is 10% for each $2,000 of AGI.

The thresholds are indexed to inflation. Taxpayers can continue to claim the state subtraction amounts with a calculation similar to prior law (the “Alternative Method”), if those amounts are greater than the new “Simplified” approach established in the bill.

The effective date is tax year 2023 and later.

Bill language

Chapter 64, Article 1, Section 24: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/64/

MISCELLANEOUS

Acute Care Transitions Advisory Council

2023 Regular Session

SF2934/HF2847

Chapter 61, Article 1, Section 82 Human Services omnibus budget bill

Effective: July 1, 2023

Short description

Establishes an advisory council to develop an action plan on more timely and appropriate hospital discharges.

Summary

During the COVID-19 pandemic, hospitals across the state experienced full occupancy, and backups in their emergency departments while patients waited to access an inpatient bed. As COVID-19 admissions decreased, the issue with delayed admissions and discharges from hospitals remained, primarily due to decreasing numbers of post-discharge options. Hospital patients ready for discharge were staying in the hospital for days/weeks/months while discharge planners were unsuccessful in finding an appropriate post-acute setting willing to accept these new admissions. Some of the admission declines were due to a diminished workforce in post-acute settings, others due to lack of payor source or complex behaviors. The Department of Human Services (DHS) established a small working task force early in the legislative session to develop some solutions to this problem; the governor’s supplemental budget proposal did include $27 million to build statewide capacity for acute care transitions. This proposal was not included in the final omnibus budget bill, rather, they included this advisory council charged with coming up with an action plan by October 2024.

Bill language

Chapter 61, Article 1, Section 82: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

Sec. 82. ACUTE CARE TRANSITIONS ADVISORY COUNCIL. Subdivision 1. Establishment. The commissioner of human services shall establish an Acute Care Transitions Advisory Council to advise and assist the commissioner in establishing and implementing a statewide vision and systemic approach to acute care transitions in Minnesota.

Subd. 2. Membership. (a) The Acute Care Transitions Advisory Council consists of the following members:

(1) two individuals or their representatives who have lived experiences with acute care transitions;

(2) two members representing home and community-based services providers;

(3) two members representing the Minnesota Hospital Association;

(4) one member representing the Minnesota Association of County Social Service Administrators;

(5) one member representing the Local Public Health Association;

(6) one member representing a Tribal government;

(7) one member representing the University of Minnesota;

(8) one member representing the State Advisory Council on Mental Health and Subcommittee on Children's Mental Health;

(9) one member representing a public sector labor union;

(10) one member representing the Minnesota County Attorney's Association;

(11) one individual who has had an acute hospital stay initiated during a crisis;

(12) one parent of a child who has had an acute hospital stay initiated during a crisis;

(13) one individual who meets the definition of a caring professional;

(14) the commissioner of human services or a designee;

(15) the commissioner of health or a designee; and

(16) the commissioner of education or a designee.

(b) To the extent possible, the advisory council members must represent diverse populations and different areas of the state.

(c) A member of the legislature may not serve as a member of the advisory council.

Subd. 3. Cochairs; convening first meeting. The commissioner of human services shall convene the first meeting. Advisory council members must select advisory council cochairs at the first meeting.

Subd. 4. Compensation; expenses; reimbursement. Advisory council members must be compensated and reimbursed for expenses as provided in Minnesota Statutes, section 15.059, subdivision 3.

Subd. 5. Administrative support. The commissioner of human services shall provide meeting space and administrative support to the advisory council.

Subd. 6. Public and community engagement. The commissioner of human services shall conduct public and community engagement to obtain information about barriers and potential solutions to transitioning patients from acute care settings to more appropriate nonacute care settings and must provide the information collected through public and community engagement to the advisory council.

Subd. 7. Duties. (a) By October 1, 2024, the advisory council shall develop and present to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over health and human services finance and policy and the commissioner of human services an action plan for creating a systemic approach to acute care transitions for Minnesotans. The action plan must include but is not limited to the following:

(1) recommendations to improve regional capacity for acute care transitions, including examining the roles and experience of counties and Tribes in delivering services and identifying any conflicting and duplicative roles and responsibilities among health and human services agencies, counties, and Tribes;

(2) recommendations to create a measurement and evaluation system using implementation science to analyze regional and statewide data in transitions and make ongoing recommendations for policy and program improvement; and

(3) statewide strategies for improving access to transitioning from acute care settings with a focus on addressing geographic, racial, and ethnic disparities.

(b) The advisory council may contract with a private entity or consultant as necessary to complete its duties under this section, and is exempt from state procurement process requirements under Minnesota Statutes, chapter 16C.

Subd. 8. Limitations. (a) In developing the action plan, the advisory council shall take into consideration the impact of its recommendations on:

(1) the existing capacity of state agencies, including staffing needs, technology resources, and existing agency responsibilities; and

(2) the capacity of county and Tribal partners.

(b) The advisory council shall not include in the action plan recommendations that may result in loss of benefits for the individuals eligible for state health and human services public programs or exacerbate health disparities and inequities in access to health care and human services.

Subd. 9. Expiration. The Acute Care Transitions Advisory Council expires October 2, 2024, or the day after submitting the action plan required under subdivision 7, whichever is earlier.

Age-Friendly Minnesota 2023 Regular Session

SF2934/HF2847

Chapter 61, Article 2, Section 35 Human Services omnibus bill

Effective: July 1, 2023

Short Description

This provision extends the Governor’s Council on an Age-Friendly Minnesota and their community and technical assistance grants from June 30, 2024, to June 30, 2027. The bill also provides $3 million for Age-Friendly community grants and $1.725 million for technical assistance grants for FY 2024-2025.

Summary

Age-Friendly Minnesota is a collaborative, statewide effort to make our systems and communities more inclusive of and responsive to older adults. It is part of a global movement to prepare for an aging population and ensure that older people are valued and integrated into communities at a new level. Age-Friendly MN (AFMN) Council Members represent nine state agency leadership, Greater MN representatives, Age-Friendly and faith communities, and Tribal Nations. It was originally established in a 2019 governor’s executive order 19-38 and codified by the legislature in 2021. While advocates originally requested a permanent council, with permanent grant authority, the legislature used one-time funds to extend the current AFMN Council three more years.

The age-friendly community grant program is designed to help communities, including cities, counties, other municipalities, Tribes, and collaborative efforts, to become age-friendly communities, with an emphasis on structures, services, and community features necessary to support older adult residents over the next decade, including but not limited to:

• coordination of health and social services;

• transportation access;

• safe, affordable places to live;

• reducing social isolation and improving wellness;

• combating ageism and racism against older adults;

• accessible outdoor space and buildings;

• communication and information technology access; and

• opportunities to stay engaged and economically productive.

Technical Assistance Provider (TAP) Grants are part of AFMN’s commitment to DEIA. They are designed to make AFMN Community Grants more accessible to a wide range of applicants by providing needed support to those who have limited experience and/or capacity related to applying for grants and carrying out grant-funded projects. TAP Grants provide resources for expert organizations and individuals to support communities in their age-friendly work, including in helping communities apply for AFMN Community Grants.

Bill language

Chapter 61, Article 2, Section 35: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

Live Well at Home Grants

2023 Regular Session

SF2934/HF2847

Chapter 61, Article 2, Section 2 Human Services omnibus bill

Effective: July 1, 2023

Short description

The Department of Human Services (DHS) works with partners statewide to expand the capacity of long-term services and supports to help people aged 65 and older stay in their homes and communities of choice through the distribution of community-based grants: https://mn.gov/dhs/partners-andproviders/grants-rfps/live-well/.

Summary

The Live Well at Home Grant Program is a longstanding grant program DHS administers to support people over 65 remain in their home and community of choice. The program is available to nonprofit, for-profit, and tribal nations to strengthen a community’s ability to provide affordable long-term services and support for older persons. Live Well at Home grantees are very supportive of the program, but they face significant challenges due to short grant cycles that are often a year in length. The revised statutory language consolidates the Live Well at Home Grant in one section of statute, clarifies the purpose of the grant, and establishes a process for DHS to sustain grantees with longer term funding if they are meeting grant goals.

Bill language

Chapter 61, Article 2, Section 2: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

Sec. 2 256.9754 Live Well at Home Grants

Subdivision 1. Definitions. For purposes of this section, the following terms have the meanings given.

(a) "Community" means a town, township, city, or targeted neighborhood within a city, or a consortium of towns, townships, cities, or targeted neighborhoods within cities.

(b) "Core home and community-based services provider" means a Faith in Action, Living at Home/Block Nurse, congregational nurse, or similar community-based program governed by a board, the majority of whose members reside within the program's service area, that organizes and uses volunteers and paid staff to deliver nonmedical services intended to assist older adults to identify and manage risks and to maintain the older adults' community living and integration in the community.

(c) "Long-term services and supports" means any service available under the elderly waiver program or alternative care grant programs, nursing facility services, transportation services, caregiver support and respite care services, and other home and community-based services identified as necessary either to maintain lifestyle choices for older adults or to support older adults to remain in their own home.

(d) "Older adult services" means any services available under the elderly waiver program or alternative care grant programs; nursing facility services; transportation services; respite services; and other community-based services identified as necessary either to maintain lifestyle choices for older Minnesotans, or to promote independence.

(e) "Older adult" refers to individuals 65 years of age and older.

Subd. 2. Creation; purpose. (a) The community services development live well at home grants program is are created under the administration of the commissioner of human services.

(b) The purpose of projects selected by the commissioner of human services under this section is to make strategic changes in the long-term services and supports system for older adults and people with dementia, including statewide capacity for local service development and technical assistance and

statewide availability of home and community-based services for older adult services, caregiver support and respite care services, and other supports in Minnesota. These projects are intended to create incentives for new and expanded home and community-based services in Minnesota in order to:

(1) reach older adults early in the progression of older adults' need for long-term services and supports, providing them with low-cost, high-impact services that will prevent or delay the use of more costly services;

(2) support older adults to live in the most integrated, least restrictive community setting;

(3) support the informal caregivers of older adults;

(4) develop and implement strategies to integrate long-term services and supports with health care services, in order to improve the quality of care and enhance the quality of life of older adults and older adults' informal caregivers;

(5) ensure cost-effective use of financial and human resources;

(6) build community-based approaches and community commitment to delivering long-term services and supports for older adults in their own homes;

(7) achieve a broad awareness and use of lower-cost in-home services as an alternative to nursing homes and other residential services;

(8) strengthen and develop additional home and community-based services and alternatives to nursing homes and other residential services; and

(9) strengthen programs that use volunteers.

(c) The services provided by these projects are available to older adults who are eligible for medical assistance and the elderly waiver under chapter 256S, the alternative care program under section 256B.0913, or the essential community supports grant under section 256B.0922, and to older adults who have their own money to pay for services.

Subd. 3. Provision of Community services development grants. The commissioner shall make community services development grants available to communities, providers of older adult services identified in subdivision 1, or to a consortium of providers of older adult services, to establish older adult services. Grants may be provided for capital and other costs including, but not limited to, start-up and training costs, equipment, and supplies related to older adult services or other residential or service alternatives to nursing facility care. Grants may also be made to renovate current buildings, provide transportation services, fund programs that would allow older adults or individuals with a disability to stay in their own homes by sharing a home, fund programs that coordinate and manage formal and informal services to older adults in their homes to enable them to live as independently as possible in their own homes as an alternative to nursing home care, or expand state-funded programs in the area.

Subd. 3a. Priority for other grants. The commissioner of health shall give priority to a grantee selected under subdivision 3 when awarding technology-related grants, if the grantee is using technology as part of the proposal unless that priority conflicts with existing state or federal guidance related to grant awards by the Department of Health. The commissioner of transportation shall give priority to a grantee under subdivision 3 when distributing transportation-related funds to create transportation options for older adults unless that preference conflicts with existing state or federal guidance related to grant awards by the Department of Transportation.

Subd. 3b. State waivers. The commissioner of health may waive applicable state laws and rules for grantees under subdivision 3 on a time-limited basis if the commissioner of health determines that a participating grantee requires a waiver in order to achieve demonstration project goals.

Subd. 3c. Caregiver support and respite care projects. (a) The commissioner shall establish projects to expand the availability of caregiver support and respite care services for family and other caregivers. The commissioner shall use a request for proposals to select nonprofit entities to administer the projects. Projects must:

(1) establish a local coordinated network of volunteer and paid respite workers;

(2) coordinate assignment of respite care services to caregivers of older adults;

(3) assure the health and safety of the older adults;

(4) identify at-risk caregivers;

(5) provide information, education, and training for caregivers in the designated community; and

(6) demonstrate the need in the proposed service area, particularly where nursing facility closures have occurred or are occurring or areas with service needs identified by section 144A.351. Preference must be given for projects that reach underserved populations.

(b) Projects must clearly describe:

(1) how they will achieve their purpose;

(2) the process for recruiting, training, and retraining volunteers; and

(3) a plan to promote the project in the designated community, including outreach to older adults needing the services.

(c) Money for all projects under this subdivision may be used to:

(1) hire a coordinator to develop a coordinated network of volunteer and paid respite care services and assign workers to clients;

(2) recruit and train volunteer providers;

(3) provide information, training, and education to caregivers;

(4) advertise the availability of the caregiver support and respite care project; and

(5) purchase equipment to maintain a system of assigning workers to clients.

(d) Volunteer and caregiver training must include resources on how to support an individual with dementia.

(e) Project money may not be used to supplant existing funding sources.

Subd. 3d. Core home and community-based services projects. The commissioner shall select and contract with core home and community-based services providers for projects to provide services and supports to older adults both with and without family and other informal caregivers using a request for proposals process. Projects must:

(1) have a credible public or private nonprofit sponsor providing ongoing financial support;

(2) have a specific, clearly defined geographic service area;

(3) use a practice framework designed to identify high-risk older adults and help them take action to better manage their chronic conditions and maintain their community living;

(4) have a team approach to coordination and care, ensuring that the older adult participants, participants families, and the formal and informal providers are all part of planning and providing services;

(5) provide information, support services, homemaking services, counseling, and training for the older adults and family caregivers;

(6) encourage service area or neighborhood residents and local organizations to collaborate in meeting the needs of older adults in their geographic service areas;

(7) recruit, train, and direct the use of volunteers to provide informal services and other appropriate support to older adults and their caregivers; and

(8) provide coordination and management of formal and informal services to older adults and older adults families using less expensive alternatives.

Subd. 3e. Community service grants. The commissioner shall award contracts for grants to public and private nonprofit agencies to establish services that strengthen a community's ability to provide a system of home and community-based services for elderly persons. The commissioner shall use a request for proposals process.

Subd. 3f. Live Well at Home grant extensions. (a) A current grantee under subdivision 3, 3c, 3d, or 3e may apply to the commissioner to receive on a noncompetitive basis up to two years of additional funding.

(b) To be eligible for a grant extension, a grant extension applicant must have been awarded a grant under this section within the previous five years and provide at least one eligible service in an underserved community. The grantee must submit to the commissioner a letter of intent to continue providing the eligible service after the expiration of a grant extension provided under this subdivision.

(c) The commissioner of human services must give priority to submitted letters of intent from grantees who have demonstrated success in providing chore services, homemaker services, transportation services, grocery services, caregiver supports, service coordination, or other home and community-based services to older adults in underserved communities.

(d) Notwithstanding section 16B.98, subdivision 5, paragraph (b), the commissioner may from within available appropriations extend a grant agreement up to two additional years, not to exceed seven years, for grantees the commissioner determines can successfully sustain the grantee's Live Well at Home project with the additional funds made available through the grant agreement extension.

Subd. 4. Eligibility. Grants may be awarded only to communities and providers or to a consortium of providers that have a local match of 50 percent of the costs for the project in the form of donations, local tax dollars, in-kind donations, fundraising, or other local matches.

Subd. 5. Grant preference. The commissioner of human services shall give preference when awarding grants under this section to areas where nursing facility closures have occurred or are occurring or areas with service needs identified by section 144A.351. The commissioner may award grants to the extent grant funds are available and to the extent applications are approved by the commissioner. Denial of approval of an application in one year does not preclude submission of an application in a subsequent year. The maximum grant amount is limited to $750,000.

POLST registry study

2023 Regular Session

SF2995/HF2930

Chapter 70, Article 4, Section 101

Health omnibus bill

Effective: August 1, 2023

Bill language

The commissioner, in consultation with an advisory committee shall develop recommendations for a statewide registry of POLST forms to ensure that a patient's medical treatment preferences are followed by all healthcare providers. The registry must allow for the submission of completed POLST forms and for the forms to be accessed by healthcare providers and emergency medical service personnel in a timely manner for the provision of care or services.

The commissioner shall develop recommendations on the following:

1. electronic capture, storage, and security of information in the registry;

2. procedures to protect the accuracy and confidentiality of information submitted to the registry;

3. limits as to who can access the registry;

4. where the registry should be housed;

5. ongoing funding models for the registry; and

6. any other action needed to ensure that patients' rights are protected and that their health care decisions are followed.

The commissioner shall create an advisory committee with members representing physicians, physician assistants, advanced practice registered nurses, registered nurses, nursing homes, emergency medical system providers, hospice and palliative care providers, the disability community, attorneys, medical ethicists, and the religious community.

The commissioner shall submit recommendations on establishing a statewide registry of POLST forms to the chairs and ranking minority members of the legislative committees with jurisdiction over health and human services policy and finance by February 1, 2024.

Bill language

Chapter 70, Article 4, Section 101: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/70/

Recreational cannabis 2023 Regular Session

HF100/SF73

Chapter 63

Cannabis finance & policy bill

Effective: Various implementation dates for possession, licensing growers, licensing retailers, etc.

Short description

This is a 175-page bill, making Minnesota the 23rd state to legalize recreational cannabis. Persons 21 years old or older will be able to grow, possess, and use recreational cannabis beginning August 1, 2023. There are limits regarding where it can be grown, smoked, stored, etc. The law also prohibits healthcare facilities from banning the use of medical cannabis. Creates a new Office of Cannabis Management to oversee both recreational and medical cannabis. Anticipate retail sales around the first quarter of 2025.

Implications

Facilities will need to amend their medical cannabis policies if they currently prohibit the use of medical cannabis. Facilities will need to develop policies and procedures to clarify the use and any limitations regarding the use of recreational cannabis in or on the grounds of the facility.

Bill language

Chapter 63: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/63/

Recuperative care services

2023 Regular Session

SF2995/HF2930

Chapter 70, Article 1, Sections 25 and 27

Effective Date: January 1, 2024

Short Description

Effective January 1, 2024, Medical assistance will cover recuperative care services, which is a new type of health program that offers healthcare providers a safe way to provide continued health and treatment services for up to 60 days to patients experiencing homelessness after they no longer need to be hospitalized.

Summary

As early as 2019, the safety net hospitals were lobbying for inclusion of recuperative care services as a Medicaid benefit available in Minnesota. According to Hennepin Healthcare, one out of every five adult primary care patients covered by Medicaid is homeless. Patients experiencing homelessness are twice as likely to be readmitted within a week of discharge from the hospital and are more likely to be admitted to the hospital to care for high risk, costly conditions, and are at risk of an earlier death than people who have stable housing. Patients experiencing homelessness tend to be the costliest consumers across multiple systems.

Under this new law, Medicaid will pay for recuperative care services, including clinical care coordination and support services not currently reimbursed in a shelter or other short-term housing. Recuperative care, a nationally recognized model, is short-term care for people experiencing homelessness who are not ill enough to be in a hospital, yet too ill to recuperate on the streets. Recuperative care has improved health outcomes, reduced emergency department visits, increased appropriate access to care, and may decrease the use of detox and the criminal justice system as de-facto behavioral health and shelter systems. Settings approved as a Medicaid provider of recuperative care services are to meet the national standards recently developed by the National Institute for Medical Respite Care, found here: https://bit.ly/3JBUUGZ

Implications

This new Medicaid benefit was established to help ease the backlogs in hospitals, especially those in the Twin Cities area with a large homeless population. There are no restrictions on the type of setting for recuperative care, however, there are national standards that must be met, and this population can be difficult to manage in terms of care plan compliance. For some assisted living and nursing facilities the daily rate may be a sufficient enough increase for them to consider establishing this service model.

Bill Language

Chapter 70, Article 1, Sections 25 & 27: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/70/

Sec. 25. Minnesota Statutes 2022, section 256B.0625, is amended by adding a subdivision to read:

Subd. 70. Recuperative care services. Medical assistance covers recuperative care services according to section 256B.0701.

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

Sec. 27. [256B.0701] RECUPERATIVE CARE SERVICES.

Subdivision 1. Definitions. (a) For purposes of this section, the following terms have the meanings given.

(b) "Provider" means a recuperative care provider as defined by the standards established by the National Institute for Medical Respite Care.

(c) "Recuperative care" means a model of care that prevents hospitalization or that provides postacute medical care and support services for recipients experiencing homelessness who are too ill or frail to recover from a physical illness or injury while living in a shelter or are otherwise unhoused but who are not sick enough to be hospitalized or remain hospitalized, or to need other levels of care.

Subd. 2. Recuperative care settings. Recuperative care may be provided in any setting, including but not limited to homeless shelters, congregate care settings, single room occupancy settings, or supportive housing, so long as the provider of recuperative care or provider of housing is able to provide to the recipient within the designated setting, at a minimum:

(1) 24-hour access to a bed and bathroom;

(2) access to three meals a day;

(3) availability to environmental services;

(4) access to a telephone;

(5) a secure place to store belongings; and

(6) staff available within the setting to provide a wellness check as needed, but at a minimum, at least once every 24 hours.

Subd. 3. Eligibility. To be eligible for recuperative care service, a recipient must:

(1) not be a child;

(2) be experiencing homelessness;

(3) be in need of short-term acute medical care for a period of no more than 60 days;

(4) meet clinical criteria, as established by the commissioner, that indicates that the recipient needs recuperative care; and

(5) not have behavioral health needs that are greater than what can be managed by the provider within the setting.

Subd. 4. Total payment rates. Total payment rates for recuperative care consist of the recuperative care services rate and the recuperative care facility rate.

Subd. 5. Recuperative care services rate. The recuperative care services rate is for the services provided to the recipient and must be a bundled daily per diem payment of at least $300 per day. Services provided within the bundled payment may include but are not limited to:

(1) basic nursing care, including:

(i) monitoring a patient's physical health and pain level;

(ii) providing wound care;

(iii) medication support;

(iv) patient education;

(v) immunization review and update; and

(vi) establishing clinical goals for the recuperative care period and discharge plan;

(2) care coordination, including:

(i) initial assessment of medical, behavioral, and social needs;

(ii) development of a care plan;

(iii) support and referral assistance for legal services, housing, community social services, case management, health care benefits, health and other eligible benefits, and transportation needs and services; and

(iv) monitoring and follow-up to ensure that the care plan is effectively implemented to address the medical, behavioral, and social needs;

(3) basic behavioral needs, including counseling and peer support, that can be provided in the recuperative care setting; and

(4) services provided by a community health worker as defined under section 256B.0625, subdivision 49.

Subd. 6. Recuperative care facility rate. (a) The recuperative care facility rate is for facility costs and must be paid from state money in an amount equal to the medical assistance room and board rate at the time the recuperative care services were provided. The eligibility standards in chapter 256I do not apply to the recuperative care facility rate. The recuperative care facility rate is only paid when the recuperative care services rate is paid to a provider. Providers may opt to only receive the recuperative care services rate.

(b) Before a recipient is discharged from a recuperative care setting, the provider must ensure that the recipient's medical condition is stabilized or that the recipient is being discharged to a setting that is able to meet that recipient's needs.

Subd. 7. Extended stay. If a recipient requires care exceeding the 60-day limit described in subdivision 3, the provider may request in a format prescribed by the commissioner an extension to continue payments until the recipient is discharged.

Subd. 8. Report. (a) The commissioner must submit an initial report on coverage of recuperative care services to the chairs and ranking minority members of the legislative committees having jurisdiction over health and human services finance and policy by February 1, 2025, and a final report by February 1, 2027. The reports must include but are not limited to:

(1) a list of the recuperative care services in Minnesota and the number of recipients;

(2) the estimated return on investment, including health care savings due to reduced hospitalizations;

(3) follow-up information, if available, on whether recipients' hospital visits decreased since recuperative care services were provided compared to before the services were provided; and

(4) any other information that can be used to determine the effectiveness of the program and its funding, including recommendations for improvements to the program.

(b) This subdivision expires upon submission of the final report. EFFECTIVE DATE. This section is effective January 1, 2024.

Supported Decision Making Grant Program established 2023 Regular Session

SF2934/HF2847

Chapter 61, Article 1, Sections 61 & 76 Human Services omnibus bill

Effective: July 1, 2023

Short description

Supported Decision Making Grant Program is established, administered by the Department of Human Services (DHS). $4 million is available for these grants for fiscal years 2024-2025. The commissioner of DHS is to issue a report by December 15, 2024, on how medica assistance service providers could be reimbursed for providing supported-decision-making services.

Summary

Nearly three years ago, the legislature passed significant reforms and updates to Minnesota's guardianship and conservatorship laws. For the first time, Minnesota recognized the critical role that supported decisionmaking plays for older adults and persons with disabilities. Under those changes, courts ordering guardianship now must ensure that all less restrictive means to guardianship, including supported decisionmaking, have been tried before ordering guardianship. At that time, however, no funding was provided to help organizations and counties expand their supported decision-making services. While guardianship is appropriate in some instances, it should be the very last alternative considered as guardianship can greatly restrict a person’s ability to make decisions about where to live, their healthcare decisions, or even if they can vote.

Supported decision making is a best practice in helping individuals with cognitive or other limitations make informed choices. It respects the autonomy of the individual living with disabilities or cognitive impairment, while intentionally supporting individuals to build their confidence and competence in decision-making.

SF2934 establishes a new grant program administered by the Department of Human Services (DHS) for organizations and counties to develop and enhance their supported decision-making services to persons with disabilities, older adults, and their support networks of family and friends. This grant funding program will increase access to the service and facilitate a culture shift toward supported decision-making service options as a first, more person-centered choice. In addition, DHS commissioner must issue a report with recommendations for all medical assistance programs, including all home- and community-based programs, to provide for reimbursement for supported-decision-making services. The report must develop detailed provider requirements for reimbursement, including the criteria necessary to provide high-quality services. In developing provider requirements, the commissioner shall consult with all relevant stakeholders, including organizations currently providing supported-decision-making services.

Implications

The guardianship process is very complex and restrictive yet there are times when individuals need “external” guidance to make choices such as signing up for Medicaid when they have no resources. Supported decision-making can provide a functional alternative to guardianship or conservatorships to provide needed support to individuals who need help with finances or healthcare.

Bill language

Chapter 61, Article 1, Sections 61 & 76: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/61/

Sec. 61. SUPPORTED-DECISION-MAKING PROGRAMS.

Subdivision 1. Authorization. The commissioner of human services shall award general operating grants to public and private nonprofit organizations, counties, and Tribes to provide and promote supported decision making.

Subd. 2. Definitions. (a) For the purposes of this section, the terms in this section have the meanings given.

(b) "Supported decision making" has the meaning given in section 524.5-102, subdivision 16a.

(c) "Supported-decision-making services" means services provided to help an individual consider, access, or develop supported decision making, potentially as an alternative to more restrictive forms of decision making, including guardianship and conservatorship. The services may be provided to the individual, family members, or trusted support people. The individual may currently be a person subject to guardianship or conservatorship, but the services must not be used to help a person access a guardianship or conservatorship.

Subd. 3. Grants. (a) The grants must be distributed as follows:

(1) at least 75 percent of the grant money must be used to fund programs or organizations that provide supported-decision-making services;

(2) no more than 20 percent of the grant money may be used to fund county or Tribal programs that provide supported-decision-making services; and

(3) no more than five percent of the grant money may be used to fund programs or organizations that do not provide supported-decision-making services but do promote the use and advancement of supported decision making.

(b) The grants must be distributed in a manner to promote racial and geographic diversity in the populations receiving services as determined by the commissioner.

Subd. 4. Evaluation and report. By December 1, 2024, the commissioner must submit to the chairs and ranking minority members of the legislative committees with jurisdiction over human services finance and policy an interim report on the impact and outcomes of the grants, including the number of grants awarded and the organizations receiving the grants. The interim report must include any available evidence of how grantees were able to increase utilization of supported decision making and reduce or avoid more restrictive forms of decision making such as guardianship and conservatorship. By December 1, 2025, the commissioner must submit to the chairs and ranking minority members of the legislative committees with jurisdiction over human services finance and policy a final report on the impact and outcomes of the grants, including any updated information from the interim report and the total number of people served by the grants. The final report must also detail how the money was used to achieve the requirements in subdivision 3, paragraph (b).

Subd. 5. Applications. Any public or private nonprofit agency may apply to the commissioner for a grant under subdivision 3, paragraph (a), clause (1) or (3). Any county or Tribal agency in Minnesota may apply to the commissioner for a grant under subdivision 3, paragraph (a), clause (2). The application must be submitted in a form approved by the commissioner.

Subd. 6. Duties of grantees. Every public or private nonprofit agency, county, or Tribal agency that receives a grant to provide or promote supported decision making must comply with rules related to the administration of the grants.

Sec. 76. DIRECTION TO COMMISSIONER; SUPPORTED-DECISION-MAKING REIMBURSEMENT STUDY. By December 15, 2024, the commissioner shall issue a report to the governor and the chairs and ranking minority members of the legislative committees with jurisdiction over human services finance and policy detailing how medical assistance service providers could be reimbursed for providing supported-decision-making services. The report must detail recommendations for all medical assistance programs, including all home and community-based programs, to provide for reimbursement for supported-decision-making services. The report must develop detailed provider requirements for reimbursement, including the criteria necessary to provide high-quality services. In developing provider requirements, the commissioner shall consult with all relevant stakeholders, including organizations currently providing supported-decision-making services. The report must also include strategies to promote equitable access to supported-decision-making services to individuals who are Black, Indigenous, or People of Color; people from culturally specific communities; people from rural communities; and other people who may experience barriers to accessing medical assistance home and community-based services.

Survivorship of claims

2023 Regular Session

SF2909/HF2890

Chapter 52, Article 19, Section 32-35

Judiciary and Public Safety omnibus bill

Effective: Day following enactment

Short description

Removes a prohibition on the survival of an action after a person dies. Current law did not allow for the survival of a claim that a person who has died has against another except in certain specific circumstances and for certain types of damages.

The treatment of COVID-related actions is limited to one year from the date of the death of the former patient or resident.

Summary

“Survival of causes” removes a prohibition on the survival of an action after a person dies. Current law did not allow for the survival of a claim that a person who has died has against another except in certain specific circumstances and for certain types of damages. This section would apply after the bill was enacted and apply to causes of action pending or commenced after that day.

“Death actions” amends the existing law on actions that survive after a person has died to allow the plaintiff or plaintiffs (surviving spouse or nearest kin) to recover for all damages. This section applies after the bill was enacted and applies to causes of action pending or commenced after that day.

“Injury action” allows a claim that a person had before they died to continue after they died for all damages, not just for special damages so long as the suit is brought within six years of the act or omission that caused the injury and within three years of the person’s death. This section applies after the bill was enacted and applies to causes of action pending or commenced after that day.

“Injury action; statute of limitations”—An action, brought that accrued during the peacetime emergency against a healthcare provider alleging malpractice, error, mistake, or failure to cure regarding treatment, transmission, or vaccination related to the infectious disease that was the subject of the peacetime emergency must be filed within one year from the date of death of the former patient or resident

Implications

There will likely be increases to insurance costs as the causes of action arising out of injuries to a person will now survive the death of that person meaning if you injure someone, their pain and suffering claim will survive their death. Furthermore, there will now be 3 years after the death and within 6 years of the act or omission to file the suits.

Bill language

Chapter 52, Article 19, Sections 32-35: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/52/