Minnesota 2023-2024 Regular Session

Minnesota House Bill HF1703 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to state government; creating Department of Direct Care and Treatment
3	3	1.3 and Office of Human Services Licensing and Integrity; transferring duties from
4	4	1.4 Department of Human Services to new state office; directing commissioners of
5	5	1.5 health and human services to contract with third party to administer grant programs
6	6	1.6 administered by Department of Health and Department of Human Services;
7	7	1.7 directing commissioner of human services to contract with third party to review
8	8	1.8 appropriations for information technology projects; providing for
9	9	1.9 performance-based budgeting for Department of Human Services; requiring reports;
10	10	1.10 amending Minnesota Statutes 2022, sections 15.01; 15.06, subdivision 1; 15A.0815,
11	11	1.11 subdivisions 2, 3; 16A.103, subdivision 1a; 16A.11, subdivision 3; 43A.08,
12	12	1.12 subdivision 1a; 256.974; 256.9742, subdivision 1; 256.975, by adding a subdivision;
13	13	1.13 proposing coding for new law in Minnesota Statutes, chapters 16A; 256; proposing
14	14	1.14 coding for new law as Minnesota Statutes, chapters 245J; 246C; repealing
15	15	1.15 Minnesota Statutes 2022, section 256.01, subdivision 9.
16	16	1.16BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
17	17	1.17 ARTICLE 1
18	18	1.18 DEPARTMENT OF DIRECT CARE AND TREATMENT
19	19	1.19 Section 1. Minnesota Statutes 2022, section 15.01, is amended to read:
20	20	1.20 15.01 DEPARTMENTS OF THE STATE.
21	21	1.21 The following agencies are designated as the departments of the state government: the
22	22	1.22Department of Administration; the Department of Agriculture; the Department of Commerce;
23	23	1.23the Department of Corrections; the Department of Direct Care and Treatment; the Department
24	24	1.24of Education; the Department of Employment and Economic Development; the Department
25	25	1.25of Health; the Department of Human Rights; the Department of Human Services; the
26	26	1.26Department of Information Technology Services; the Department of Iron Range Resources
27	27	1.27and Rehabilitation; the Department of Labor and Industry; the Department of Management
28	28	1Article 1 Section 1.
29	29	REVISOR DTT/AD 23-0119201/05/23
30	30	State of Minnesota
31	31	This Document can be made available
32	32	in alternative formats upon request
33	33	HOUSE OF REPRESENTATIVES
34	34	H. F. No. 1703
35	35	NINETY-THIRD SESSION
36	36	Authored by Schomacker02/13/2023
37	37	The bill was read for the first time and referred to the Committee on Human Services Policy 2.1and Budget; the Department of Military Affairs; the Department of Natural Resources; the
38	38	2.2Department of Public Safety; the Department of Human Services; the Department of
39	39	2.3Revenue; the Department of Transportation; the Department of Veterans Affairs; and their
40	40	2.4successor departments.
41	41	2.5 EFFECTIVE DATE.This section is effective July 1, 2024.
42	42	2.6 Sec. 2. Minnesota Statutes 2022, section 15.06, subdivision 1, is amended to read:
43	43	2.7 Subdivision 1.Applicability.This section applies to the following departments or
44	44	2.8agencies: the Departments of Administration, Agriculture, Commerce, Corrections, Direct
45	45	2.9Care and Treatment, Education, Employment and Economic Development, Health, Human
46	46	2.10Rights, Human Services, Labor and Industry, Management and Budget, Natural Resources,
47	47	2.11Public Safety, Human Services, Revenue, Transportation, and Veterans Affairs; the Housing
48	48	2.12Finance and Pollution Control Agencies; the Office of Commissioner of Iron Range
49	49	2.13Resources and Rehabilitation; the Department of Information Technology Services; the
50	50	2.14Bureau of Mediation Services; and their successor departments and agencies. The heads of
51	51	2.15the foregoing departments or agencies are "commissioners."
52	52	2.16 EFFECTIVE DATE.This section is effective July 1, 2024.
53	53	2.17 Sec. 3. Minnesota Statutes 2022, section 15A.0815, subdivision 2, is amended to read:
54	54	2.18 Subd. 2.Group I salary limits.The salary for a position listed in this subdivision shall
55	55	2.19not exceed 133 percent of the salary of the governor. This limit must be adjusted annually
56	56	2.20on January 1. The new limit must equal the limit for the prior year increased by the percentage
57	57	2.21increase, if any, in the Consumer Price Index for all urban consumers from October of the
58	58	2.22second prior year to October of the immediately prior year. The commissioner of management
59	59	2.23and budget must publish the limit on the department's website. This subdivision applies to
60	60	2.24the following positions:
61	61	2.25 Commissioner of administration;
62	62	2.26 Commissioner of agriculture;
63	63	2.27 Commissioner of education;
64	64	2.28 Commissioner of commerce;
65	65	2.29 Commissioner of corrections;
66	66	2.30 Commissioner of direct care and treatment;
67	67	2.31 Commissioner of health;
68	68	2Article 1 Sec. 3.
69	69	REVISOR DTT/AD 23-0119201/05/23 3.1 Commissioner, Minnesota Office of Higher Education;
70	70	3.2 Commissioner, Housing Finance Agency;
71	71	3.3 Commissioner of human rights;
72	72	3.4 Commissioner of human services;
73	73	3.5 Commissioner of labor and industry;
74	74	3.6 Commissioner of management and budget;
75	75	3.7 Commissioner of natural resources;
76	76	3.8 Commissioner, Pollution Control Agency;
77	77	3.9 Commissioner of public safety;
78	78	3.10 Commissioner of revenue;
79	79	3.11 Commissioner of employment and economic development;
80	80	3.12 Commissioner of transportation; and
81	81	3.13 Commissioner of veterans affairs.
82	82	3.14 EFFECTIVE DATE.This section is effective July 1, 2024.
83	83	3.15 Sec. 4. Minnesota Statutes 2022, section 43A.08, subdivision 1a, is amended to read:
84	84	3.16 Subd. 1a.Additional unclassified positions.Appointing authorities for the following
85	85	3.17agencies may designate additional unclassified positions according to this subdivision: the
86	86	3.18Departments of Administration;, Agriculture;, Commerce;, Corrections;, Direct Care and
87	87	3.19Treatment, Education;, Employment and Economic Development;, Explore Minnesota
88	88	3.20Tourism;, Management and Budget;, Health;, Human Rights;, Human Services, Labor and
89	89	3.21Industry;, Natural Resources;, Public Safety; Human Services;, Revenue;, Transportation;,
90	90	3.22and Veterans Affairs;, the Housing Finance and Pollution Control Agencies;, the State
91	91	3.23Lottery;, the State Board of Investment;, the Office of Administrative Hearings;, the
92	92	3.24Department of Information Technology Services;, the Offices of the Attorney General,
93	93	3.25Secretary of State, and State Auditor;, the Minnesota State Colleges and Universities;, the
94	94	3.26Minnesota Office of Higher Education;, the Perpich Center for Arts Education;, and the
95	95	3.27Minnesota Zoological Board.
96	96	3.28 A position designated by an appointing authority according to this subdivision must
97	97	3.29meet the following standards and criteria:
98	98	3Article 1 Sec. 4.
99	99	REVISOR DTT/AD 23-0119201/05/23 4.1 (1) the designation of the position would not be contrary to other law relating specifically
100	100	4.2to that agency;
101	101	4.3 (2) the person occupying the position would report directly to the agency head or deputy
102	102	4.4agency head and would be designated as part of the agency head's management team;
103	103	4.5 (3) the duties of the position would involve significant discretion and substantial
104	104	4.6involvement in the development, interpretation, and implementation of agency policy;
105	105	4.7 (4) the duties of the position would not require primarily personnel, accounting, or other
106	106	4.8technical expertise where continuity in the position would be important;
107	107	4.9 (5) there would be a need for the person occupying the position to be accountable to,
108	108	4.10loyal to, and compatible with, the governor and the agency head, the employing statutory
109	109	4.11board or commission, or the employing constitutional officer;
110	110	4.12 (6) the position would be at the level of division or bureau director or assistant to the
111	111	4.13agency head; and
112	112	4.14 (7) the commissioner has approved the designation as being consistent with the standards
113	113	4.15and criteria in this subdivision.
114	114	4.16 EFFECTIVE DATE.This section is effective July 1, 2024.
115	115	4.17 Sec. 5. [246C.01] DEPARTMENT OF DIRECT CARE AND TREATMENT.
116	116	4.18 (a) The Department of Direct Care and Treatment is created. The governor shall appoint
117	117	4.19the commissioner of direct care and treatment under section 15.06. The commissioner shall
118	118	4.20develop and maintain direct care and treatment in a manner consistent with sections 245.461
119	119	4.21and 245.487 and chapters 246, 246B, 252, 253, 253B, 253C, 253D, 254A, 254B, and 256.
120	120	4.22The Department of Direct Care and Treatment shall provide direct care and treatment services
121	121	4.23in coordination with counties and other vendors. Direct care and treatment services shall
122	122	4.24include: specialized inpatient programs at secure treatment facilities as defined in sections
123	123	4.25253B.02, subdivision 18a, and 253D.02, subdivision 13; community preparation services;
124	124	4.26regional treatment centers; enterprise services; consultative services; aftercare services;
125	125	4.27community-based services and programs; transition services; nursing home services; and
126	126	4.28other services consistent with the mission of the Department of Direct Care and Treatment.
127	127	4.29 (b) "Community preparation services" means specialized inpatient or outpatient services
128	128	4.30or programs operated outside of a secure environment but administered by a secure treatment
129	129	4.31facility.
130	130	4.32 EFFECTIVE DATE.This section is effective July 1, 2024.
131	131	4Article 1 Sec. 5.
132	132	REVISOR DTT/AD 23-0119201/05/23 5.1 Sec. 6. [246C.05] TRANSFER OF DUTIES.
133	133	5.2 (a) Section 15.039 applies to the transfer of duties required by this chapter.
134	134	5.3 (b) The commissioner of administration, with the governor's approval, shall issue
135	135	5.4reorganization orders under section 16B.37 as necessary to carry out the transfer of duties
136	136	5.5required by section 246C.01. The provision of section 16B.37, subdivision 1, stating that
137	137	5.6transfers under section 16B.37 may only be to an agency that has existed for at least one
138	138	5.7year does not apply to transfers to an agency created by this chapter.
139	139	5.8 (c) The initial salary for the commissioner of direct care and treatment is the same as
140	140	5.9the salary for the health systems chief executive officer of direct care and treatment at the
141	141	5.10Department of Human Services immediately before July 1, 2024. The salary may change
142	142	5.11in the manner specified in section 15A.0815.
143	143	5.12 (d) The commissioner of management and budget shall ensure that the aggregate cost
144	144	5.13for the commissioner of direct care and treatment is not more than the aggregate cost of the
145	145	5.14primary executives in the Department of Human Services responsible for management of
146	146	5.15direct care and treatment immediately before July 1, 2024.
147	147	5.16 (e) For an employee affected by the transfer of duties required by section 246C.01, the
148	148	5.17employee's seniority accrual at the employee's former agency transfers to the employee's
149	149	5.18new agency.
150	150	5.19 EFFECTIVE DATE.This section is effective July 1, 2024.
151	151	5.20 Sec. 7. REVISOR INSTRUCTION.
152	152	5.21 The revisor of statutes, in consultation with staff from the House Research Department;
153	153	5.22House Fiscal Analysis; the Office of Senate Counsel, Research and Fiscal Analysis; and
154	154	5.23the respective departments shall prepare legislation for introduction in the 2024 legislative
155	155	5.24session proposing the statutory changes necessary to implement the transfers of duties that
156	156	5.25this article requires.
157	157	5.26 EFFECTIVE DATE.This section is effective July 1, 2023.
158	158	5.27 ARTICLE 2
159	159	5.28 OFFICE OF HUMAN SERVICES LICENSING AND INTEGRITY
160	160	5.29 Section 1. Minnesota Statutes 2022, section 15.06, subdivision 1, is amended to read:
161	161	5.30 Subdivision 1.Applicability.This section applies to the following departments or
162	162	5.31agencies: the Departments of Administration, Agriculture, Commerce, Corrections,
163	163	5Article 2 Section 1.
164	164	REVISOR DTT/AD 23-0119201/05/23 6.1Education, Employment and Economic Development, Health, Human Rights, Labor and
165	165	6.2Industry, Management and Budget, Natural Resources, Public Safety, Human Services,
166	166	6.3Revenue, Transportation, and Veterans Affairs; the Housing Finance and Pollution Control
167	167	6.4Agencies; the Office of Commissioner of Iron Range Resources and Rehabilitation; the
168	168	6.5Department of Information Technology Services; the Bureau of Mediation Services; and
169	169	6.6their successor departments and agencies. The heads of the foregoing departments or agencies
170	170	6.7are "commissioners." This subdivision also applies to the Office of Human Services Licensing
171	171	6.8and Integrity.
172	172	6.9 EFFECTIVE DATE.This section is effective July 1, 2024.
173	173	6.10 Sec. 2. Minnesota Statutes 2022, section 15A.0815, subdivision 3, is amended to read:
174	174	6.11 Subd. 3.Group II salary limits.The salary for a position listed in this subdivision shall
175	175	6.12not exceed 120 percent of the salary of the governor. This limit must be adjusted annually
176	176	6.13on January 1. The new limit must equal the limit for the prior year increased by the percentage
177	177	6.14increase, if any, in the Consumer Price Index for all urban consumers from October of the
178	178	6.15second prior year to October of the immediately prior year. The commissioner of management
179	179	6.16and budget must publish the limit on the department's website. This subdivision applies to
180	180	6.17the following positions:
181	181	6.18 Executive director of Gambling Control Board;
182	182	6.19 Commissioner of Iron Range resources and rehabilitation;
183	183	6.20 Commissioner, Bureau of Mediation Services;
184	184	6.21 Director, Office of Human Services Licensing and Integrity;
185	185	6.22 Ombudsman for mental health and developmental disabilities;
186	186	6.23 Ombudsperson for corrections;
187	187	6.24 Chair, Metropolitan Council;
188	188	6.25 School trust lands director;
189	189	6.26 Executive director of pari-mutuel racing; and
190	190	6.27 Commissioner, Public Utilities Commission.
191	191	6.28 EFFECTIVE DATE.This section is effective July 1, 2024.
192	192	6.29 Sec. 3. [245J.01] DEFINITIONS.
193	193	6.30 Subdivision 1.Definitions.The definitions in this section apply to chapter 245J.
194	194	6Article 2 Sec. 3.
195	195	REVISOR DTT/AD 23-0119201/05/23 7.1 Subd. 2.Department."Department" means the Department of Human Services, unless
196	196	7.2otherwise specified.
197	197	7.3 Subd. 3.Commissioner."Commissioner" means the commissioner of human services,
198	198	7.4unless otherwise specified.
199	199	7.5 Subd. 4.Director."Director" means the director of the Office of Human Services
200	200	7.6Licensing and Integrity.
201	201	7.7 Subd. 5.Office."Office" means the Office of Human Services Licensing and Integrity.
202	202	7.8 Sec. 4. [245J.02] OFFICE OF HUMAN SERVICES LICENSING AND INTEGRITY;
203	203	7.9CREATION; DIRECTOR; RESPONSIBILITIES.
204	204	7.10 Subdivision 1.Creation.The Office of Human Services Licensing and Integrity is
205	205	7.11created.
206	206	7.12 Subd. 2.Director.The director of the Office of Human Services Licensing and Integrity
207	207	7.13shall be appointed by the governor with the advice and consent of the senate.
208	208	7.14 Subd. 3.Responsibilities.The office shall, in coordination with local human services
209	209	7.15agencies, where applicable, perform licensing, background studies, and program integrity
210	210	7.16functions for all programs administered by the department, which includes the following
211	211	7.17specific activities:
212	212	7.18 (1) conduct licensing functions related to programs administered by the Department of
213	213	7.19Human Services, including adult day care, child care and early education, children's
214	214	7.20residential facilities, foster care, home and community-based services, independent living
215	215	7.21assistance for youth, outpatient mental health clinics or centers, residential mental health
216	216	7.22treatment for adults, and substance use disorder treatment consistent with chapters 245,
217	217	7.23245A, 245D, 245F, 245G, 245H, 252, and 256;
218	218	7.24 (2) conduct background studies according to sections 144.057, 144A.476, 144A.62,
219	219	7.25144A.754, and 157.17, and chapter 245C;
220	220	7.26 (3) ensure the detection, prevention, and investigation of fraudulent activities or behavior
221	221	7.27by applicants, recipients, providers, and other participants in all programs administered by
222	222	7.28the department;
223	223	7.29 (4) require county agencies to identify overpayments, establish claims, and utilize all
224	224	7.30available and cost-beneficial methodologies to collect and recover overpayments in all
225	225	7.31programs administered by the department;
226	226	7Article 2 Sec. 4.
227	227	REVISOR DTT/AD 23-0119201/05/23 8.1 (5) refer cases of fraudulent activities or behavior by applicants, recipients, providers,
228	228	8.2and other participants in human services programs to the department or to law enforcement
229	229	8.3for resolution as required by law;
230	230	8.4 (6) conduct program evaluations and audits of the department to ensure the absence of
231	231	8.5waste, fraud, or abuse in any program administered by the department; and
232	232	8.6 (7) contract with an independent third party to audit the financial activities of the
233	233	8.7Department of Human Services relating to its administration of human services programs.
234	234	8.8The third-party auditor shall not duplicate any ongoing audit by the legislative auditor.
235	235	8.9 Subd. 4.Annual report.(a) The director shall report annually by February 1 to the
236	236	8.10chairs and ranking minority members of the legislative committees with jurisdiction over
237	237	8.11human services on the activities of the office to carry out the duties under this section. The
238	238	8.12annual report shall include the following:
239	239	8.13 (1) information relating to investigations undertaken by the office, including the number
240	240	8.14of cases investigated, categorized by type, with a specific section detailing investigations
241	241	8.15or audits of the department;
242	242	8.16 (2) an accounting of funds recovered as a result of the activities of the office;
243	243	8.17 (3) the monetary value that resulted from fraud prevention activities conducted by the
244	244	8.18office; and
245	245	8.19 (4) any specific recommendations to reduce waste, fraud, or abuse in any program
246	246	8.20administered by the department.
247	247	8.21 (b) This subdivision does not expire.
248	248	8.22 Subd. 5.Access to records.The director or designee has access to data of any state
249	249	8.23agency necessary for the discharge of the duties in subdivision 3, including records classified
250	250	8.24as confidential data on individuals or private data on individuals under chapter 13, or any
251	251	8.25other law. The director's data request must relate to a specific case and is subject to section
252	252	8.2613.03, subdivision 4.
253	253	8.27 Subd. 6.Access to employees.The director or designee has access to any official or
254	254	8.28employee of any state or local agency necessary for the discharge of its duties in subdivision
255	255	8.293. No person may interfere with or impede an investigation or audit conducted by the office.
256	256	8.30 EFFECTIVE DATE.This section is effective July 1, 2024.
257	257	8Article 2 Sec. 4.
258	258	REVISOR DTT/AD 23-0119201/05/23 9.1 Sec. 5. [245J.03] RELATIONSHIP TO DEPARTMENT OF HUMAN SERVICES.
259	259	9.2 (a) The responsibilities in section 245J.02, subdivision 3, shall belong solely to the office
260	260	9.3and no other state agency or office. The activities of the office shall be limited to those
261	261	9.4necessary to carry out licensing, background studies, and program integrity functions for
262	262	9.5all programs administered by the Department of Human Services. The office shall not have
263	263	9.6responsibility to develop policies, standards, or legislative proposals regarding licensing,
264	264	9.7background studies, or program integrity functions for programs administered by the
265	265	9.8Department of Human Services.
266	266	9.9 (b) The director is authorized to enter agreements with the commissioner to establish
267	267	9.10how the office shall carry out the duties in section 245J.02, subdivision 3, in conformity
268	268	9.11with the applicable program policies, procedures, and standards developed by the department.
269	269	9.12The director is authorized to enter additional agreements with the commissioner or any
270	270	9.13other state agency or office as needed to carry out the duties in section 245J.02, subdivision
271	271	9.143.
272	272	9.15 Sec. 6. TRANSFER OF DUTIES; OFFICE OF HUMAN SERVICES LICENSING
273	273	9.16AND INTEGRITY.
274	274	9.17 (a) Minnesota Statutes, section 15.039, applies to the transfer of duties required by
275	275	9.18Minnesota Statutes, chapter 245J.
276	276	9.19 (b) The commissioner of administration, with approval of the governor, shall issue
277	277	9.20reorganization orders under Minnesota Statutes, section 16B.37, as necessary to carry out
278	278	9.21the transfer of duties required by Minnesota Statutes, chapter 245J. The provision of
279	279	9.22Minnesota Statutes, section 16B.37, subdivision 1, stating that transfers under that section
280	280	9.23may be made only to an agency that has been in existence for at least one year does not
281	281	9.24apply to transfers to the Office of Human Services Licensing and Integrity created by
282	282	9.25Minnesota Statutes, section 245J.02.
283	283	9.26 (c) The commissioner of management and budget shall ensure that the aggregate cost
284	284	9.27for the Office of Human Services Licensing and Integrity is not more than the aggregate
285	285	9.28amount of the Department of Human Services budget activities that relate to the
286	286	9.29responsibilities listed in Minnesota Statutes, section 245J.02, subdivision 3, as of June 30,
287	287	9.302024.
288	288	9.31 (d) For an employee affected by the transfer of duties required by Minnesota Statutes,
289	289	9.32chapter 245J, the seniority accrued by the employee at the employee's former agency transfers
290	290	9.33to the employee's new position at the Office of Human Services Licensing and Integrity.
291	291	9Article 2 Sec. 6.
292	292	REVISOR DTT/AD 23-0119201/05/23 10.1 EFFECTIVE DATE.This section is effective July 1, 2024.
293	293	10.2 Sec. 7. DIRECTION TO THE COMMISSIONER OF HUMAN SERVICES.
294	294	10.3 (a) Prior to July 1, 2024, the commissioner of human services shall review examples
295	295	10.4from states that operate decentralized offices of licensing, background studies, or program
296	296	10.5integrity activities for state human services programs in order to develop any necessary
297	297	10.6agreements or policies for the Office of Human Services Licensing and Integrity to conduct
298	298	10.7the responsibilities in Minnesota Statutes, section 245J.02, subdivision 3.
299	299	10.8 (b) By February 1, 2024, the commissioner of human services shall identify any divisions
300	300	10.9of the Department of Human Services that could not be transferred to the Office of Human
301	301	10.10Services Licensing and Integrity without avoidable financial waste. The commissioner of
302	302	10.11human services shall report to the chairs and ranking minority members of the legislative
303	303	10.12committees with jurisdiction over human services on the divisions of the Department of
304	304	10.13Human Services that the commissioner believes should remain within the Department of
305	305	10.14Human Services.
306	306	10.15 (c) Effective July 1, 2024, the Department of Human Services shall not duplicate any
307	307	10.16activity performed by the Office of Human Services Licensing and Integrity to carry out
308	308	10.17the responsibilities in Minnesota Statutes, section 245J.02, subdivision 3. Prior to July 1,
309	309	10.182024, the commissioner of human services shall seek any federal waivers necessary to
310	310	10.19comply with this paragraph.
311	311	10.20 EFFECTIVE DATE.This section is effective the day following final enactment.
312	312	10.21Sec. 8. REVISOR INSTRUCTION.
313	313	10.22 The revisor of statutes, in consultation with staff from the House Research Department;
314	314	10.23House Fiscal Analysis; the Office of Senate Counsel, Research and Fiscal Analysis; and
315	315	10.24the Department of Human Services, shall prepare legislation by January 31, 2024, to make
316	316	10.25any statutory changes necessary to achieve the transfer of duties from the Department of
317	317	10.26Human Services to the Office of Human Services Licensing and Integrity required by this
318	318	10.27article.
319	319	10.28 EFFECTIVE DATE.This section is effective the day following final enactment.
320	320	10Article 2 Sec. 8.
321	321	REVISOR DTT/AD 23-0119201/05/23 11.1 ARTICLE 3
322	322	11.2 DEPARTMENT OF HUMAN SERVICES
323	323	11.3 PERFORMANCE-BASED BUDGETING;
324	324	11.4 GRANT PROGRAM ADMINISTRATION;
325	325	11.5 IT APPROPRIATIONS REVIEW
326	326	11.6 Section 1. Minnesota Statutes 2022, section 16A.103, subdivision 1a, is amended to read:
327	327	11.7 Subd. 1a.Forecast parameters.(a) Except as provided in paragraph (b), the forecast
328	328	11.8must assume the continuation of current laws and reasonable estimates of projected growth
329	329	11.9in the national and state economies and affected populations. Revenue must be estimated
330	330	11.10for all sources provided for in current law. Expenditures must be estimated for all obligations
331	331	11.11imposed by law and those projected to occur as a result of variables outside the control of
332	332	11.12the legislature. Expenditure estimates must not include an allowance for inflation.
333	333	11.13 (b) Notwithstanding paragraph (a) and any appropriations established in law, all
334	334	11.14expenditures for the Department of Human Services and the Department of Direct Care and
335	335	11.15Treatment estimated for the November forecast must be zero. The forecasted expenditures
336	336	11.16in the February forecast must be zero for the Department of Human Services and the
337	337	11.17Department of Direct Care and Treatment if they were zero in the preceding November
338	338	11.18forecast as a result of the requirements of this paragraph. The commissioner shall not apply
339	339	11.19this paragraph to forecasted expenditures for the current biennium, but shall apply the
340	340	11.20requirements of this paragraph to the forecasted expenditures for the next two bienniums.
341	341	11.21 EFFECTIVE DATE.This section is effective July 1, 2023.
342	342	11.22Sec. 2. Minnesota Statutes 2022, section 16A.11, subdivision 3, is amended to read:
343	343	11.23 Subd. 3.Part two: detailed budget.(a) Part two of the budget, the detailed budget
344	344	11.24estimates both of expenditures and revenues, must contain any statements on the financial
345	345	11.25plan which the governor believes desirable or which may be required by the legislature.
346	346	11.26The detailed estimates shall include the governor's budget arranged in tabular form.
347	347	11.27 (b) Tables listing expenditures for the next biennium must show the appropriation base
348	348	11.28for each year. The appropriation base is the amount appropriated for the second year of the
349	349	11.29current biennium. The tables must separately show any adjustments to the base required by
350	350	11.30current law or policies of the commissioner of management and budget. For forecasted
351	351	11.31programs, the tables must also show the amount of the forecast adjustments, based on the
352	352	11.32most recent forecast prepared by the commissioner of management and budget under section
353	353	11.3316A.103. For all programs, the tables must show the amount of appropriation changes
354	354	11Article 3 Sec. 2.
355	355	REVISOR DTT/AD 23-0119201/05/23 12.1recommended by the governor, after adjustments to the base and forecast adjustments, and
356	356	12.2the total recommendation of the governor for that year.
357	357	12.3 (c) The detailed estimates must include a separate line listing the total cost of professional
358	358	12.4and technical service contracts for the prior biennium and the projected costs of those
359	359	12.5contracts for the current and upcoming biennium. They must also include a summary of the
360	360	12.6personnel employed by the agency, reflected as full-time equivalent positions.
361	361	12.7 (d) The detailed estimates for internal service funds must include the number of full-time
362	362	12.8equivalents by program; detail on any loans from the general fund, including dollar amounts
363	363	12.9by program; proposed investments in technology or equipment of $100,000 or more; an
364	364	12.10explanation of any operating losses or increases in retained earnings; and a history of the
365	365	12.11rates that have been charged, with an explanation of any rate changes and the impact of the
366	366	12.12rate changes on affected agencies.
367	367	12.13 (e) Notwithstanding paragraph (b) and any appropriation established in law in the year
368	368	12.14prior to the year in which part two of the budget under paragraph (a) must be submitted,
369	369	12.15the appropriation base for any appropriation made to the Department of Human Services
370	370	12.16or the Department of Direct Care and Treatment for the next two bienniums must be zero.
371	371	12.17The commissioner must display the appropriation base established under this paragraph in
372	372	12.18the tables and narrative of part two of the budget under paragraph (a).
373	373	12.19 EFFECTIVE DATE.This section is effective July 1, 2023.
374	374	12.20Sec. 3. [16A.111] PERFORMANCE-BASED BUDGET.
375	375	12.21 Subdivision 1.Performance-based budget.(a) By November 30, 2023, and annually
376	376	12.22thereafter, the Department of Human Services and the Department of Direct Care and
377	377	12.23Treatment must each submit to the commissioner a proposed detailed operating budget for
378	378	12.24the biennium beginning July 1 of the following year using performance-based budgeting,
379	379	12.25including a performance-based budget plan. The commissioner of management and budget
380	380	12.26shall provide technical assistance to enable the Department of Human Services and the
381	381	12.27Department of Direct Care and Treatment to each complete a proposed detailed operating
382	382	12.28budget as specified by the commissioner of management and budget.
383	383	12.29 (b) The commissioner of management and budget shall adopt policies and procedures
384	384	12.30for the Department of Human Services and the Department of Direct Care and Treatment
385	385	12.31to implement this section.
386	386	12Article 3 Sec. 3.
387	387	REVISOR DTT/AD 23-0119201/05/23 13.1 (c) As used in this section, "performance-based budgeting" means a method of
388	388	13.2determining the budget of a department, institution, or agency for which the budget of the
389	389	13.3department, institution, or agency:
390	390	13.4 (1) is deemed to be zero in the November forecast, the February forecast, and the
391	391	13.5governor's budget recommendations that precede the establishment of a biennial budget;
392	392	13.6and
393	393	13.7 (2) has justified each proposed expenditure for the biennium covered by the budget as
394	394	13.8if it were a new expenditure.
395	395	13.9 (d) The Department of Human Services and the Department of Direct Care and Treatment
396	396	13.10must each submit to the legislature a detailed operating budget and performance-based
397	397	13.11budget plan developed under this subdivision. The information must be submitted to the
398	398	13.12legislature at the same time that part two under section 16A.11, subdivision 3, paragraph
399	399	13.13(a), of the governor's budget is required to be submitted under section 16A.11, subdivision
400	400	13.141.
401	401	13.15 Subd. 2.Performance-based budget plan.A performance-based budget plan includes
402	402	13.16the following information:
403	403	13.17 (1) a description of activities that comprise the agency and a justification for the existence
404	404	13.18of each activity by reference to statute or other legal authority;
405	405	13.19 (2) for each activity, a quantitative estimate of any adverse impacts that could reasonably
406	406	13.20occur if the activity is discontinued and a description of the methods by which the adverse
407	407	13.21impact is estimated;
408	408	13.22 (3) a list of quantifiable program outcomes that measure the efficiency and effectiveness
409	409	13.23of each program;
410	410	13.24 (4) for each activity, an itemized account of expenditures required to maintain the activity
411	411	13.25at the minimum level of service required by statutory authority and a concise statement of
412	412	13.26the quantity and quality of services required at that minimum level;
413	413	13.27 (5) for each activity, an itemized account of expenditures required to maintain the quantity
414	414	13.28and quality of services being provided and the number of personnel necessary to accomplish
415	415	13.29each program; and
416	416	13.30 (6) a ranking of all activities that shows the relative contribution of each activity to the
417	417	13.31overall goals and purposes of the agency at current service levels.
418	418	13.32 EFFECTIVE DATE.This section is effective July 1, 2023.
419	419	13Article 3 Sec. 3.
420	420	REVISOR DTT/AD 23-0119201/05/23 14.1 Sec. 4. DIRECTION TO THE COMMISSIONERS OF HEALTH AND HUMAN
421	421	14.2SERVICES; GRANT PROGRAM ADMINISTRATION CONTRACT.
422	422	14.3 By December 31, 2023, the commissioner of health and the commissioner of human
423	423	14.4services must contract with an independent third party to administer, beginning July 1, 2024,
424	424	14.5all grant programs administered by the Department of Health and the Department of Human
425	425	14.6Services as of December 31, 2023. The contract shall include the Department of Health and
426	426	14.7the Department of Human Services amounts to administer grants and the amounts for grants.
427	427	14.8Notwithstanding any law to the contrary, the contract shall allow a maximum of two percent
428	428	14.9for administration of the grant funds by the independent third party.
429	429	14.10 EFFECTIVE DATE.This section is effective the day following final enactment.
430	430	14.11Sec. 5. DIRECTION TO THE COMMISSIONER OF HUMAN SERVICES; HUMAN
431	431	14.12SERVICES INFORMATION TECHNOLOGY APPROPRIATIONS REVIEW.
432	432	14.13 (a) By December 31, 2023, the commissioner of human services shall contract with a
433	433	14.14third party to review, assess, and report on all appropriations for active information
434	434	14.15technology projects at the Department of Human Services, beginning January 1, 2024. At
435	435	14.16a minimum, the contractor's report shall include:
436	436	14.17 (1) a technical assessment of the information technology projects, including whether
437	437	14.18the project complies with any legislative requirements;
438	438	14.19 (2) an assessment of the feasibility of each information technology project, including
439	439	14.20whether each project is on schedule or meets applicable deadlines or performance measures;
440	440	14.21 (3) an assessment of the funding for information technology projects, including
441	441	14.22identifying waste, insufficient funding, or overspending; and
442	442	14.23 (4) recommendations to improve the efficiency or outcome of an information technology
443	443	14.24project.
444	444	14.25 (b) The contractor shall report its findings to the commissioner and the chairs and ranking
445	445	14.26minority members of the legislative committees with jurisdiction over human services by
446	446	14.27December 31, 2024.
447	447	14.28 EFFECTIVE DATE.This section is effective the day following final enactment.
448	448	14Article 3 Sec. 5.
449	449	REVISOR DTT/AD 23-0119201/05/23 15.1 ARTICLE 4
450	450	15.2 MINNESOTA BOARD ON AGING;
451	451	15.3 OFFICE OF OMBUDSMAN FOR LONG-TERM CARE
452	452	15.4 Section 1. Minnesota Statutes 2022, section 256.974, is amended to read:
453	453	15.5 256.974 OFFICE OF OMBUDSMAN FOR LONG-TERM CARE.
454	454	15.6 The ombudsman for long-term care is appointed by the governor, serves in the classified
455	455	15.7unclassified service under section 256.01, subdivision 7, and may be removed only for just
456	456	15.8cause. The ombudsman must be selected without regard to political affiliation and must be
457	457	15.9a person who has knowledge and experience concerning the treatment, needs, and rights of
458	458	15.10consumers of long-term care and who is highly competent and qualified. A person may not
459	459	15.11serve as ombudsman while holding another public office or being employed by the
460	460	15.12Department of Human Services. The ombudsman serves in an office within the Minnesota
461	461	15.13Board on Aging that incorporates the long-term care ombudsman program required by the
462	462	15.14Older Americans Act, as amended, United States Code, title 42, sections 3027(a)(9) and
463	463	15.153058g(a), and Code of Federal Regulations, title 45, parts 1321 and 1327. The office shall
464	464	15.16be a distinct entity, separately identifiable from other state agencies and may not be an
465	465	15.17agency engaged in the provision of nursing home care, hospital care, or home care services
466	466	15.18either directly or by contract, or have the responsibility for planning, coordinating, funding,
467	467	15.19or administering nursing home care, hospital care, or home care services.
468	468	15.20Sec. 2. Minnesota Statutes 2022, section 256.9742, subdivision 1, is amended to read:
469	469	15.21 Subdivision 1.Duties.The office ombudsman shall:
470	470	15.22 (1) gather information and evaluate any act, practice, policy, procedure, or administrative
471	471	15.23action of a long-term care facility, acute care facility, home care service provider, or
472	472	15.24government agency that may adversely affect the health, safety, welfare, or rights of any
473	473	15.25client;
474	474	15.26 (2) mediate or advocate on behalf of clients;
475	475	15.27 (3) monitor and evaluate the development and implementation of federal, state, or local
476	476	15.28laws, rules, regulations, and policies affecting the rights and benefits of clients;
477	477	15.29 (4) comment on and recommend make recommendations to public and private agencies,
478	478	15.30the governor, and the legislature regarding laws, rules, regulations, and policies affecting
479	479	15.31clients;
480	480	15.32 (5) inform public agencies about the problems of clients;
481	481	15Article 4 Sec. 2.
482	482	REVISOR DTT/AD 23-0119201/05/23 16.1 (6) provide for training of volunteers and promote the development of citizen participation
483	483	16.2in the work of the office;
484	484	16.3 (7) conduct public forums to obtain information about and publicize issues affecting
485	485	16.4clients;
486	486	16.5 (8) provide public education regarding the health, safety, welfare, and rights of clients;
487	487	16.6and
488	488	16.7 (9) collect and analyze data relating to complaints, conditions, and services.
489	489	16.8 Sec. 3. [256.9746] ORGANIZATION OF OFFICE OF OMBUDSMAN FOR
490	490	16.9LONG-TERM CARE.
491	491	16.10 Subdivision 1.Staff.The ombudsman may appoint two deputies and a confidential
492	492	16.11secretary in the unclassified service and may appoint other employees as authorized by the
493	493	16.12legislature. The ombudsman and the full-time staff are members of the Minnesota State
494	494	16.13Retirement Association.
495	495	16.14 Subd. 2.Delegation.The ombudsman may delegate to representatives of the office any
496	496	16.15authority or duties of the ombudsman except the duty of formally making recommendations
497	497	16.16to an agency or facility or reports to the governor or the legislature.
498	498	16.17Sec. 4. [256.9747] REIMBURSEMENT TO OFFICE OF OMBUDSMAN FOR
499	499	16.18LONG-TERM CARE.
500	500	16.19 The commissioner of human services shall obtain federal financial participation for
501	501	16.20eligible activity by the ombudsman for long-term care. The ombudsman shall maintain and
502	502	16.21transmit to the Department of Human Services documentation that is necessary to obtain
503	503	16.22federal funds.
504	504	16.23Sec. 5. [256.9748] RECOMMENDA TIONS AND REPORTS TO GOVERNOR.
505	505	16.24 Subdivision 1.Specific reports.The ombudsman may send to the governor or the
506	506	16.25legislature conclusions and suggestions concerning any matter. Before making public a
507	507	16.26conclusion or recommendation that expressly or implicitly criticizes an agency, facility,
508	508	16.27program, or person, the ombudsman shall consult with the governor and the agency, facility,
509	509	16.28program, or person concerning the conclusion or recommendation. When sending a
510	510	16.29conclusion or recommendation to the governor or legislature that is adverse to an agency,
511	511	16.30facility, program, or person, the ombudsman shall include a statement made by that agency,
512	512	16.31facility, program, or person in defense or mitigation of the office's conclusion or
513	513	16Article 4 Sec. 5.
514	514	REVISOR DTT/AD 23-0119201/05/23 17.1recommendation. The governor may not prohibit the ombudsman from sending conclusions
515	515	17.2or suggestions to the legislature or prohibit the ombudsman from making conclusions or
516	516	17.3recommendations public.
517	517	17.4 Subd. 2.General reports.In addition to conclusions or recommendations the ombudsman
518	518	17.5makes to the governor or legislature on an ad hoc basis, the ombudsman shall, at the end
519	519	17.6of each biennium, report to the governor concerning the exercise of the ombudsman's
520	520	17.7functions during the preceding biennium.
521	521	17.8 Sec. 6. Minnesota Statutes 2022, section 256.975, is amended by adding a subdivision to
522	522	17.9read:
523	523	17.10 Subd. 1b.Executive director; staff.The board may select an executive director of the
524	524	17.11board by a vote of a majority of board members. The executive director shall be in the
525	525	17.12unclassified service of the state and shall provide administrative support for the board and
526	526	17.13provide administrative leadership to implement board mandates, policies, and objectives.
527	527	17.14A person may not serve as executive director of the board while being employed by the
528	528	17.15Department of Human Services. The executive director shall employ and direct staff
529	529	17.16authorized according to state law and necessary to carry out board mandates, policies,
530	530	17.17activities, and objectives. The salary of the executive director and staff shall be established
531	531	17.18pursuant to chapter 43A. The executive director and staff shall be reimbursed for the actual
532	532	17.19and necessary expenses incurred as a result of their board responsibilities.
533	533	17.20Sec. 7. SMALL AGENCY ADMINISTRATIVE SUPPORT SERVICES.
534	534	17.21 The commissioner of administration shall, under Minnesota Statutes, section 16B.371,
535	535	17.22evaluate the needs of the Board on Aging for administrative support services. If after an
536	536	17.23evaluation the commissioner requires the board to receive administrative support services,
537	537	17.24the commissioner may not designate the Department of Human Services to provide the
538	538	17.25required administrative support services.
539	539	17.26Sec. 8. REPEALER.
540	540	17.27 Minnesota Statutes 2022, section 256.01, subdivision 9, is repealed.
541	541	17Article 4 Sec. 8.
542	542	REVISOR DTT/AD 23-0119201/05/23 256.01 COMMISSIONER OF HUMAN SERVICES; POWERS, DUTIES.
543	543	Subd. 9.Staff assistance to the Minnesota Board on Aging.The board shall be provided staff
544	544	assistance from the Department of Human Services through the special consultant on aging, who
545	545	shall serve as the executive secretary to the board and its committees.
546	546	1R
547	547	APPENDIX
548	548	Repealed Minnesota Statutes: 23-01192