Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF2640 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1.1 A bill for an act
2	2		1.2 relating to human services; modifying community first services and supports
3	3		1.3 reimbursement rates; increasing certain budgets for consumer-direct community
4	4		1.4 supports; establishing the Minnesota Caregiver Defined Contribution Retirement
5	5		1.5 Fund Trust; appropriating money; amending Minnesota Statutes 2024, sections
6	6		1.6 179A.54, by adding a subdivision; 256B.0659, subdivision 17a; 256B.85,
7	7		1.7 subdivisions 7a, 8, 16; 256B.851, subdivisions 5, 6.
8	8		1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
9	9		1.9 Section 1. Minnesota Statutes 2024, section 179A.54, is amended by adding a subdivision
10	10		1.10to read:
11	11		1.11 Subd. 12.Minnesota Caregiver Defined Contribution Retirement Fund Trust.(a)
12	12		1.12The state and an exclusive representative certified pursuant to this section may establish a
13	13		1.13joint labor and management trust, referred to as the Minnesota Caregiver Defined
14	14		1.14Contribution Retirement Fund Trust, for the exclusive purpose of creating, implementing,
15	15		1.15and administering a retirement plan for individual providers of direct support services who
16	16		1.16are represented by the exclusive representative.
17	17		1.17 (b) The state must make financial contributions to the Minnesota Caregiver Defined
18	18		1.18Contribution Retirement Fund Trust pursuant to a collective bargaining agreement negotiated
19	19		1.19under this section. The financial contributions by the state must be held in trust for the
20	20		1.20purpose of paying, from principal, income, or both, the costs associated with creating,
21	21		1.21implementing, and administering a defined contribution retirement plan for individual
22	22		1.22providers of direct support services working under a collective bargaining agreement and
23	23		1.23providing services through a covered program under section 256B.0711. A board of trustees
24	24		1.24composed of an equal number of trustees appointed by the governor and trustees appointed
25	25		1Section 1.
26		-	~~S2640-1 1st Engrossment~~~~SF2640~~ REVISOR AGW
	26	+	25-04537 as introduced03/11/25 REVISOR AGW/NS
27	27		SENATE
28	28		STATE OF MINNESOTA
29	29		S.F. No. 2640NINETY-FOURTH SESSION
30	30		(SENATE AUTHORS: MAYE QUADE, Abeler and Pappas)
31	31		OFFICIAL STATUSD-PGDATE
32		-	Introduction and first reading86403/17/2025
33		-	Referred to Human Services
34		-	Comm report: To pass as amended and re-refer to State and Local Government04/01/2025 2.1by the exclusive representative under this section must administer, manage, and otherwise
	32	+	Introduction and first reading03/17/2025
	33	+	Referred to Human Services 2.1by the exclusive representative under this section must administer, manage, and otherwise
35	34		2.2jointly control the Minnesota Caregiver Defined Contribution Retirement Fund Trust. The
36	35		2.3trust must not be an agent of either the state or the exclusive representative.
37	36		2.4 (c) A third-party administrator, financial management institution, other appropriate
38	37		2.5entity, or any combination thereof may provide trust administrative, management, legal,
39	38		2.6and financial services to the board of trustees as designated by the board of trustees from
40	39		2.7time to time. The services must be paid from the money held in trust and created by the
41	40		2.8state's financial contributions to the Minnesota Caregiver Defined Contribution Retirement
42	41		2.9Fund Trust.
43	42		2.10 (d) The state is authorized to purchase liability insurance for members of the board of
44	43		2.11trustees appointed by the governor.
45	44		2.12 (e) Financial contributions to or participation in the management or administration of
46	45		2.13the Minnesota Caregiver Defined Contribution Retirement Fund Trust must not be considered
47	46		2.14an unfair labor practice under section 179A.13, or a violation of Minnesota law.
48	47		2.15 EFFECTIVE DATE.This section is effective July 1, 2025.
49	48		2.16 Sec. 2. Minnesota Statutes 2024, section 256B.0659, subdivision 17a, is amended to read:
50	49		2.17 Subd. 17a.Enhanced rate.(a) An enhanced rate of 107.5 percent of the rate paid for
51	50		2.18personal care assistance services shall be paid for services provided to persons who qualify
52	51		2.19for ten or more hours of personal care assistance services per day when provided by a
53	52		2.20personal care assistant who meets the requirements of subdivision 11, paragraph (d). This
54	53		2.21paragraph expires upon the effective date of paragraph (b).
55	54		2.22 (b) Effective January 1, 2026, or upon federal approval, whichever is later, an enhanced
56	55		2.23rate of 112.5 percent of the rate paid for personal care assistance services shall be paid for
57	56		2.24services provided to persons who qualify for ten or more hours of personal care assistance
58	57		2.25services per day when provided by a personal care assistant who meets the requirements of
59	58		2.26subdivision 11, paragraph (d).
60	59		2.27 (b) (c) A personal care assistance provider must use all additional revenue attributable
61	60		2.28to the rate enhancements under this subdivision for the wages and wage-related costs of the
62	61		2.29personal care assistants, including any corresponding increase in the employer's share of
63	62		2.30FICA taxes, Medicare taxes, state and federal unemployment taxes, and workers'
64	63		2.31compensation premiums. The agency must not use the additional revenue attributable to
65	64		2.32any enhanced rate under this subdivision to pay for mileage reimbursement, health and
66	65		2Sec. 2.
67		-	~~S2640-1 1st Engrossment~~~~SF2640~~ REVISOR AGW 3.1dental insurance, life insurance, disability insurance, long-term care insurance, uniform
	66	+	25-04537 as introduced03/11/25 REVISOR AGW/NS 3.1dental insurance, life insurance, disability insurance, long-term care insurance, uniform
68	67		3.2allowance, contributions to employee retirement accounts, or any other employee benefits.
69	68		3.3 (c) (d) Any change in the eligibility criteria for the enhanced rate for personal care
70	69		3.4assistance services as described in this subdivision and referenced in subdivision 11,
71	70		3.5paragraph (d), does not constitute a change in a term or condition for individual providers
72	71		3.6as defined in section 256B.0711, and is not subject to the state's obligation to meet and
73	72		3.7negotiate under chapter 179A.
74	73		3.8 EFFECTIVE DATE.This section is effective the day following final enactment.
75	74		3.9 Sec. 3. Minnesota Statutes 2024, section 256B.85, subdivision 7a, is amended to read:
76	75		3.10 Subd. 7a.Enhanced rate.(a) An enhanced rate of 107.5 percent of the rate paid for
77	76		3.11CFSS must be paid for services provided to persons who qualify for ten or more hours of
78	77		3.12CFSS per day when provided by a support worker who meets the requirements of subdivision
79	78		3.1316, paragraph (e). This paragraph expires upon the effective date of paragraph (b).
80	79		3.14 (b) Effective January 1, 2026, or upon federal approval, whichever is later, an enhanced
81	80		3.15rate of 112.5 percent of the rate paid for CFSS must be paid for services provided to persons
82	81		3.16who qualify for ten or more hours of CFSS per day when provided by a support worker
83	82		3.17who meets the requirements of subdivision 16, paragraph (e).
84	83		3.18 (b) (c) An agency provider must use all additional revenue attributable to the rate
85	84		3.19enhancements under this subdivision for the wages and wage-related costs of the support
86	85		3.20workers, including any corresponding increase in the employer's share of FICA taxes,
87	86		3.21Medicare taxes, state and federal unemployment taxes, and workers' compensation premiums.
88	87		3.22The agency provider must not use the additional revenue attributable to any enhanced rate
89	88		3.23under this subdivision to pay for mileage reimbursement, health and dental insurance, life
90	89		3.24insurance, disability insurance, long-term care insurance, uniform allowance, contributions
91	90		3.25to employee retirement accounts, or any other employee benefits.
92	91		3.26 (c) (d) Any change in the eligibility criteria for the enhanced rate for CFSS as described
93	92		3.27in this subdivision and referenced in subdivision 16, paragraph (e), does not constitute a
94	93		3.28change in a term or condition for individual providers as defined in section 256B.0711, and
95	94		3.29is not subject to the state's obligation to meet and negotiate under chapter 179A.
96	95		3.30 EFFECTIVE DATE.This section is effective the day following federal approval.
97	96		3Sec. 3.
98		-	~~S2640-1 1st Engrossment~~~~SF2640~~ REVISOR AGW 4.1 Sec. 4. Minnesota Statutes 2024, section 256B.85, subdivision 8, is amended to read:
	97	+	25-04537 as introduced03/11/25 REVISOR AGW/NS 4.1 Sec. 4. Minnesota Statutes 2024, section 256B.85, subdivision 8, is amended to read:
99	98		4.2 Subd. 8.Determination of CFSS service authorization amount.(a) All community
100	99		4.3first services and supports must be authorized by the commissioner or the commissioner's
101	100		4.4designee before services begin. The authorization for CFSS must be completed as soon as
102	101		4.5possible following an assessment but no later than 40 calendar days from the date of the
103	102		4.6assessment.
104	103		4.7 (b) The amount of CFSS authorized must be based on the participant's home care rating
105	104		4.8described in paragraphs (d) and (e) and any additional service units for which the participant
106	105		4.9qualifies as described in paragraph (f).
107	106		4.10 (c) The home care rating shall be determined by the commissioner or the commissioner's
108	107		4.11designee based on information submitted to the commissioner identifying the following for
109	108		4.12a participant:
110	109		4.13 (1) the total number of dependencies of activities of daily living;
111	110		4.14 (2) the presence of complex health-related needs; and
112	111		4.15 (3) the presence of Level I behavior.
113	112		4.16 (d) The methodology to determine the total service units for CFSS for each home care
114	113		4.17rating is based on the median paid units per day for each home care rating from fiscal year
115	114		4.182007 data for the PCA program.
116	115		4.19 (e) Each home care rating is designated by the letters P through Z and EN and has the
117	116		4.20following base number of service units assigned:
118	117		4.21 (1) P home care rating requires Level I behavior or one to three dependencies in ADLs
119	118		4.22and qualifies the person for five service units;
120	119		4.23 (2) Q home care rating requires Level I behavior and one to three dependencies in ADLs
121	120		4.24and qualifies the person for six service units;
122	121		4.25 (3) R home care rating requires a complex health-related need and one to three
123	122		4.26dependencies in ADLs and qualifies the person for seven service units;
124	123		4.27 (4) S home care rating requires four to six dependencies in ADLs and qualifies the person
125	124		4.28for ten service units;
126	125		4.29 (5) T home care rating requires four to six dependencies in ADLs and Level I behavior
127	126		4.30and qualifies the person for 11 service units;
128	127		4Sec. 4.
129		-	~~S2640-1 1st Engrossment~~~~SF2640~~ REVISOR AGW 5.1 (6) U home care rating requires four to six dependencies in ADLs and a complex
	128	+	25-04537 as introduced03/11/25 REVISOR AGW/NS 5.1 (6) U home care rating requires four to six dependencies in ADLs and a complex
130	129		5.2health-related need and qualifies the person for 14 service units;
131	130		5.3 (7) V home care rating requires seven to eight dependencies in ADLs and qualifies the
132	131		5.4person for 17 service units;
133	132		5.5 (8) W home care rating requires seven to eight dependencies in ADLs and Level I
134	133		5.6behavior and qualifies the person for 20 service units;
135	134		5.7 (9) Z home care rating requires seven to eight dependencies in ADLs and a complex
136	135		5.8health-related need and qualifies the person for 30 service units; and
137	136		5.9 (10) EN home care rating includes ventilator dependency as defined in section 256B.0651,
138	137		5.10subdivision 1, paragraph (g). A person who meets the definition of ventilator-dependent
139	138		5.11and the EN home care rating and utilize a combination of CFSS and home care nursing
140	139		5.12services is limited to a total of 96 service units per day for those services in combination.
141	140		5.13Additional units may be authorized when a person's assessment indicates a need for two
142	141		5.14staff to perform activities. Additional time is limited to 16 service units per day.
143	142		5.15 (f) Additional service units are provided through the assessment and identification of
144	143		5.16the following:
145	144		5.17 (1) 30 additional minutes per day for a dependency in each critical activity of daily
146	145		5.18living;
147	146		5.19 (2) 30 additional minutes per day for each complex health-related need; and
148	147		5.20 (3) 30 additional minutes per day for each behavior under this clause that requires
149	148		5.21assistance at least four times per week:
150	149		5.22 (i) level I behavior that requires the immediate response of another person;
151	150		5.23 (ii) increased vulnerability due to cognitive deficits or socially inappropriate behavior;
152	151		5.24or
153	152		5.25 (iii) increased need for assistance for participants who are verbally aggressive or resistive
154	153		5.26to care so that the time needed to perform activities of daily living is increased.
155	154		5.27 (g) The service budget for budget model participants shall be based on:
156	155		5.28 (1) assessed units as determined by the home care rating; and
157	156		5.29 (2) an adjustment needed for administrative expenses. This paragraph expires upon the
158	157		5.30effective date of paragraph (h).
159	158		5Sec. 4.
160		-	~~S2640-1 1st Engrossment~~~~SF2640~~ REVISOR AGW 6.1 (h) Effective January 1, 2026, or upon federal approval, whichever is later, the service
	159	+	25-04537 as introduced03/11/25 REVISOR AGW/NS 6.1 (h) Effective January 1, 2026, or upon federal approval, whichever is later, the service
161	160		6.2budget for budget model participants shall be based on:
162	161		6.3 (1) assessed units as determined by the home care rating and the payment methodologies
163	162		6.4under section 256B.851; and
164	163		6.5 (2) an adjustment needed for administrative expenses.
165	164		6.6 EFFECTIVE DATE.This section is effective the day following final approval.
166	165		6.7 Sec. 5. Minnesota Statutes 2024, section 256B.85, subdivision 16, is amended to read:
167	166		6.8 Subd. 16.Support workers requirements.(a) Support workers shall:
168	167		6.9 (1) enroll with the department as a support worker after a background study under chapter
169	168		6.10245C has been completed and the support worker has received a notice from the
170	169		6.11commissioner that the support worker:
171	170		6.12 (i) is not disqualified under section 245C.14; or
172	171		6.13 (ii) is disqualified, but has received a set-aside of the disqualification under section
173	172		6.14245C.22;
174	173		6.15 (2) have the ability to effectively communicate with the participant or the participant's
175	174		6.16representative;
176	175		6.17 (3) have the skills and ability to provide the services and supports according to the
177	176		6.18participant's CFSS service delivery plan and respond appropriately to the participant's needs;
178	177		6.19 (4) complete the basic standardized CFSS training as determined by the commissioner
179	178		6.20before completing enrollment. The training must be available in languages other than English
180	179		6.21and to those who need accommodations due to disabilities. CFSS support worker training
181	180		6.22must include successful completion of the following training components: basic first aid,
182	181		6.23vulnerable adult, child maltreatment, OSHA universal precautions, basic roles and
183	182		6.24responsibilities of support workers including information about basic body mechanics,
184	183		6.25emergency preparedness, orientation to positive behavioral practices, orientation to
185	184		6.26responding to a mental health crisis, fraud issues, time cards and documentation, and an
186	185		6.27overview of person-centered planning and self-direction. Upon completion of the training
187	186		6.28components, the support worker must pass the certification test to provide assistance to
188	187		6.29participants;
189	188		6.30 (5) complete employer-directed training and orientation on the participant's individual
190	189		6.31needs;
191	190		6Sec. 5.
192		-	~~S2640-1 1st Engrossment~~~~SF2640~~ REVISOR AGW 7.1 (6) maintain the privacy and confidentiality of the participant; and
	191	+	25-04537 as introduced03/11/25 REVISOR AGW/NS 7.1 (6) maintain the privacy and confidentiality of the participant; and
193	192		7.2 (7) not independently determine the medication dose or time for medications for the
194	193		7.3participant.
195	194		7.4 (b) The commissioner may deny or terminate a support worker's provider enrollment
196	195		7.5and provider number if the support worker:
197	196		7.6 (1) does not meet the requirements in paragraph (a);
198	197		7.7 (2) fails to provide the authorized services required by the employer;
199	198		7.8 (3) has been intoxicated by alcohol or drugs while providing authorized services to the
200	199		7.9participant or while in the participant's home;
201	200		7.10 (4) has manufactured or distributed drugs while providing authorized services to the
202	201		7.11participant or while in the participant's home; or
203	202		7.12 (5) has been excluded as a provider by the commissioner of human services, or by the
204	203		7.13United States Department of Health and Human Services, Office of Inspector General, from
205	204		7.14participation in Medicaid, Medicare, or any other federal health care program.
206	205		7.15 (c) A support worker may appeal in writing to the commissioner to contest the decision
207	206		7.16to terminate the support worker's provider enrollment and provider number.
208	207		7.17 (d) A support worker must not provide or be paid for more than 310 hours of CFSS per
209	208		7.18month, regardless of the number of participants the support worker serves or the number
210	209		7.19of agency-providers or participant employers by which the support worker is employed.
211	210		7.20The department shall not disallow the number of hours per day a support worker works
212	211		7.21unless it violates other law.
213	212		7.22 (e) CFSS qualify for an enhanced rate or budget if the support worker providing the
214	213		7.23services:
215	214		7.24 (1) provides services, within the scope of CFSS described in subdivision 7, to a participant
216	215		7.25who qualifies for ten or more hours per day of CFSS; and
217	216		7.26 (2) satisfies the current requirements of Medicare for training and competency or
218	217		7.27competency evaluation of home health aides or nursing assistants, as provided in the Code
219	218		7.28of Federal Regulations, title 42, section 483.151 or 484.36, or alternative state-approved
220	219		7.29training or competency requirements. This paragraph expires upon the effective date of
221	220		7.30paragraph (f).
222	221		7.31 (f) Effective January 1, 2026, or upon federal approval, whichever is later, CFSS qualify
223	222		7.32for an enhanced rate or budget if the support worker providing the services:
224	223		7Sec. 5.
225		-	~~S2640-1 1st Engrossment~~~~SF2640~~ REVISOR AGW 8.1 (1) provides services, within the scope of CFSS described in subdivision 7, to a participant
	224	+	25-04537 as introduced03/11/25 REVISOR AGW/NS 8.1 (1) provides services, within the scope of CFSS described in subdivision 7, to a participant
226	225		8.2who qualifies for ten or more hours per day of CFSS; and
227	226		8.3 (2) satisfies the current requirements of Medicare for training and competency or
228	227		8.4competency evaluation of home health aides or nursing assistants, as provided in the Code
229	228		8.5of Federal Regulations, title 42, section 483.151 or 484.36, or alternative state-approved
230	229		8.6training or competency requirements.
231	230		8.7 EFFECTIVE DATE.This section is effective the day following federal approval.
232	231		8.8 Sec. 6. Minnesota Statutes 2024, section 256B.851, subdivision 5, is amended to read:
233	232		8.9 Subd. 5.Payment rates; component values.(a) The commissioner must use the
234	233		8.10following component values:
235	234		8.11 (1) employee vacation, sick, and training factor, 8.71 percent;
236	235		8.12 (2) employer taxes and workers' compensation factor, 11.56 percent;
237	236		8.13 (3) employee benefits factor, 12.04 percent;
238	237		8.14 (4) client programming and supports factor, 2.30 percent;
239	238		8.15 (5) program plan support factor, 7.00 percent;
240	239		8.16 (6) general business and administrative expenses factor, 13.25 percent;
241	240		8.17 (7) program administration expenses factor, 2.90 percent; and
242	241		8.18 (8) absence and utilization factor, 3.90 percent.
243	242		8.19 (b) For purposes of implementation, the commissioner shall use the following
244	243		8.20implementation components:
245	244		8.21 (1) personal care assistance services and CFSS: 88.19 percent;
246	245		8.22 (2) enhanced rate personal care assistance services and enhanced rate CFSS: 88.19
247	246		8.23percent; and
248	247		8.24 (3) qualified professional services and CFSS worker training and development: 88.19
249	248		8.25percent. This paragraph expires upon the effective date of paragraph (c).
250	249		8.26 (c) Effective January 1, 2026, or upon federal approval, whichever is later, for purposes
251	250		8.27of implementation, the commissioner shall use the following implementation components:
252	251		8.28 (1) personal care assistance services and CFSS: 92.20 percent;
253	252		8Sec. 6.
254		-	~~S2640-1 1st Engrossment~~~~SF2640~~ REVISOR AGW 9.1 (2) enhanced rate personal care assistance services and enhanced rate CFSS: 92.20
	253	+	25-04537 as introduced03/11/25 REVISOR AGW/NS 9.1 (2) enhanced rate personal care assistance services and enhanced rate CFSS: 92.20
255	254		9.2percent; and
256	255		9.3 (3) qualified professional services and CFSS worker training and development: 92.20
257	256		9.4percent.
258	257		9.5 (c) (d) Effective January 1, 2025, for purposes of implementation, the commissioner
259	258		9.6shall use the following implementation components:
260	259		9.7 (1) personal care assistance services and CFSS: 92.08 percent;
261	260		9.8 (2) enhanced rate personal care assistance services and enhanced rate CFSS: 92.08
262	261		9.9percent; and
263	262		9.10 (3) qualified professional services and CFSS worker training and development: 92.08
264	263		9.11percent. This paragraph expires upon the effective date of paragraph (c).
265	264		9.12 (d) (e) The commissioner shall use the following worker retention components:
266	265		9.13 (1) for workers who have provided fewer than 1,001 cumulative hours in personal care
267	266		9.14assistance services or CFSS, the worker retention component is zero percent;
268	267		9.15 (2) for workers who have provided between 1,001 and 2,000 cumulative hours in personal
269	268		9.16care assistance services or CFSS, the worker retention component is 2.17 percent;
270	269		9.17 (3) for workers who have provided between 2,001 and 6,000 cumulative hours in personal
271	270		9.18care assistance services or CFSS, the worker retention component is 4.36 percent;
272	271		9.19 (4) for workers who have provided between 6,001 and 10,000 cumulative hours in
273	272		9.20personal care assistance services or CFSS, the worker retention component is 7.35 percent;
274	273		9.21and
275	274		9.22 (5) for workers who have provided more than 10,000 cumulative hours in personal care
276	275		9.23assistance services or CFSS, the worker retention component is 10.81 percent. This paragraph
277	276		9.24expires upon the effective date of paragraph (f).
278	277		9.25 (f) Effective January 1, 2026, or upon federal approval, whichever is later, the
279	278		9.26commissioner shall use the following worker retention components:
280	279		9.27 (1) for workers who have provided fewer than 1,001 cumulative hours in personal care
281	280		9.28assistance services or CFSS, the worker retention component is zero percent;
282	281		9.29 (2) for workers who have provided between 1,001 and 2,000 cumulative hours in personal
283	282		9.30care assistance services or CFSS, the worker retention component is 4.05 percent;
284	283		9Sec. 6.
285		-	~~S2640-1 1st Engrossment~~~~SF2640~~ REVISOR AGW 10.1 (3) for workers who have provided between 2,001 and 6,000 cumulative hours in personal
	284	+	25-04537 as introduced03/11/25 REVISOR AGW/NS 10.1 (3) for workers who have provided between 2,001 and 6,000 cumulative hours in personal
286	285		10.2care assistance services or CFSS, the worker retention component is 6.24 percent;
287	286		10.3 (4) for workers who have provided between 6,001 and 10,000 cumulative hours in
288	287		10.4personal care assistance services or CFSS, the worker retention component is 9.23 percent;
289	288		10.5and
290	289		10.6 (5) for workers who have provided more than 10,000 cumulative hours in personal care
291	290		10.7assistance services or CFSS, the worker retention component is 12.69 percent.
292	291		10.8 (e) (g) The commissioner shall define the appropriate worker retention component based
293	292		10.9on the total number of units billed for services rendered by the individual provider since
294	293		10.10July 1, 2017. The worker retention component must be determined by the commissioner
295	294		10.11for each individual provider and is not subject to appeal.
296	295		10.12 (h) Effective January 1, 2027, or upon federal approval, whichever is later, for purposes
297	296		10.13of implementation, the commissioner shall use the following implementation components
298	297		10.14if a worker has completed either the orientation for individual providers offered through
299	298		10.15the Home Care Orientation Trust or an orientation defined and offered by the commissioner:
300	299		10.16 (1) for workers who have provided fewer than 1,001 cumulative hours in personal care
301	300		10.17assistance services or CFSS, the worker retention component is 1.88 percent;
302	301		10.18 (2) for workers who have provided between 1,001 and 2,000 cumulative hours in personal
303	302		10.19care assistance services or CFSS, the worker retention component is 5.92 percent;
304	303		10.20 (3) for workers who have provided between 2,001, and 6,000 cumulative hours in personal
305	304		10.21care assistance services or CFSS, the worker retention component is 8.11 percent;
306	305		10.22 (4) for workers who have provided between 6,001 and 10,000 cumulative hours in
307	306		10.23personal care assistance services or CFSS, the worker retention component is 11.10 percent;
308	307		10.24and
309	308		10.25 (5) for workers who have provided more than 10,000 cumulative hours in personal care
310	309		10.26assistance services or CFSS, the worker retention component is 14.56 percent.
311	310		10.27 EFFECTIVE DATE.This section is effective the day following final enactment.
312	311		10.28Sec. 7. Minnesota Statutes 2024, section 256B.851, subdivision 6, is amended to read:
313	312		10.29 Subd. 6.Payment rates; rate determination.(a) The commissioner must determine
314	313		10.30the rate for personal care assistance services, CFSS, extended personal care assistance
315	314		10.31services, extended CFSS, enhanced rate personal care assistance services, enhanced rate
316	315		10Sec. 7.
317		-	~~S2640-1 1st Engrossment~~~~SF2640~~ REVISOR AGW 11.1CFSS, qualified professional services, and CFSS worker training and development as
	316	+	25-04537 as introduced03/11/25 REVISOR AGW/NS 11.1CFSS, qualified professional services, and CFSS worker training and development as
318	317		11.2follows:
319	318		11.3 (1) multiply the appropriate total wage component value calculated in subdivision 4 by
320	319		11.4one plus the employee vacation, sick, and training factor in subdivision 5;
321	320		11.5 (2) for program plan support, multiply the result of clause (1) by one plus the program
322	321		11.6plan support factor in subdivision 5;
323	322		11.7 (3) for employee-related expenses, add the employer taxes and workers' compensation
324	323		11.8factor in subdivision 5 and the employee benefits factor in subdivision 5. The sum is
325	324		11.9employee-related expenses. Multiply the product of clause (2) by one plus the value for
326	325		11.10employee-related expenses;
327	326		11.11 (4) for client programming and supports, multiply the product of clause (3) by one plus
328	327		11.12the client programming and supports factor in subdivision 5;
329	328		11.13 (5) for administrative expenses, add the general business and administrative expenses
330	329		11.14factor in subdivision 5, the program administration expenses factor in subdivision 5, and
331	330		11.15the absence and utilization factor in subdivision 5;
332	331		11.16 (6) divide the result of clause (4) by one minus the result of clause (5). The quotient is
333	332		11.17the hourly rate;
334	333		11.18 (7) multiply the hourly rate by the appropriate implementation component under
335	334		11.19subdivision 5. This is the adjusted hourly rate; and
336	335		11.20 (8) divide the adjusted hourly rate by four. The quotient is the total adjusted payment
337	336		11.21rate.
338	337		11.22 (b) In processing personal care assistance provider agency and CFSS provider agency
339	338		11.23claims, the commissioner shall incorporate the worker retention component specified in
340	339		11.24subdivision 5, by multiplying one plus the total adjusted payment rate by the appropriate
341	340		11.25worker retention component under subdivision 5, paragraph (d).
342	341		11.26 (c) The commissioner must publish the total final payment rates.
343	342		11.27 (d) The commissioner shall increase the authorized amount for the CFSS budget model
344	343		11.28of those CFSS participant-employers employing individual providers who have provided
345	344		11.29more than 1,000 hours of services and individual providers who have completed the
346	345		11.30orientation offered by the Home Care Orientation Trust or an orientation defined and offered
347	346		11.31by the commissioner. The commissioner shall determine the amount and method of the
348	347		11.32authorized amount increase.
349	348		11Sec. 7.
350		-	~~S2640-1 1st Engrossment~~~~SF2640~~ REVISOR AGW 12.1 EFFECTIVE DATE.This section is effective January 1, 2026, or upon federal approval,
	349	+	25-04537 as introduced03/11/25 REVISOR AGW/NS 12.1 EFFECTIVE DATE.This section is effective January 1, 2026, or upon federal approval,
351	350		12.2whichever is later. The commissioner shall notify the revisor of statutes when federal
352	351		12.3approval is obtained.
353	352		12.4 Sec. 8. BUDGET INCREASE FOR CONSUMER-DIRECTED COMMUNITY
354	353		12.5SUPPORTS.
355	354		12.6 Effective January 1, 2026, or upon federal approval, whichever is later, the commissioner
356	355		12.7must increase the consumer-directed community support budgets identified in the waiver
357	356		12.8plans under Minnesota Statutes, sections 256B.092 and 256B.49, and chapter 256S; and
358	357		12.9the alternative care program under Minnesota Statutes, section 256B.0913, by 0.13 percent.
359	358		12.10 EFFECTIVE DATE.This section is effective the day following final enactment.
360	359		12.11Sec. 9. ENHANCED BUDGET INCREASE FOR CONSUMER-DIRECTED
361	360		12.12COMMUNITY SUPPORTS.
362	361		12.13 Effective January 1, 2026, or upon federal approval, whichever is later, the commissioner
363	362		12.14must increase the consumer-directed community supports budget exception percentage
364	363		12.15identified in the waiver plans under Minnesota Statutes, sections 256B.092 and 256B.49,
365	364		12.16and chapter 256S; and the alternative care program under Minnesota Statutes, section
366	365		12.17256B.0913, from 7.5 to 12.5.
367	366		12.18 EFFECTIVE DATE.This section is effective the day following final enactment.
368	367		12.19Sec. 10. STIPEND PAYMENTS TO SEIU HEALTHCARE MINNESOTA & IOWA
369	368		12.20BARGAINING UNIT MEMBERS.
370	369		12.21 (a) The commissioner of human services shall issue stipend payments to collective
371	370		12.22bargaining unit members as required by the labor agreement between the state of Minnesota
372	371		12.23and the Service Employees International Union (SEIU) Healthcare Minnesota & Iowa.
373	372		12.24 (b) The definitions in Minnesota Statutes, section 290.01, apply to this section.
374	373		12.25 (c) For the purposes of this section, "subtraction" has the meaning given in Minnesota
375	374		12.26Statutes, section 290.0132, subdivision 1, and the rules in that subdivision apply to this
376	375		12.27section.
377	376		12.28 (d) The amount of stipend payments received by SEIU Healthcare Minnesota & Iowa
378	377		12.29collective bargaining unit members under this section is a subtraction.
379	378		12.30 (e) The amount of stipend payments received by SEIU Healthcare Minnesota & Iowa
380	379		12.31collective bargaining unit members under this section is excluded from income as defined
381	380		12Sec. 10.
382		-	~~S2640-1 1st Engrossment~~~~SF2640~~ REVISOR AGW 13.1in Minnesota Statutes, sections 290.0693, subdivision 1, paragraph (i), and 290A.03,
	381	+	25-04537 as introduced03/11/25 REVISOR AGW/NS 13.1in Minnesota Statutes, sections 290.0693, subdivision 1, paragraph (i), and 290A.03,
383	382		13.2subdivision 3.
384	383		13.3 (f) Notwithstanding any law to the contrary, stipend payments under this section must
385	384		13.4not be considered income, assets, or personal property for purposes of determining or
386	385		13.5recertifying eligibility for:
387	386		13.6 (1) child care assistance programs under Minnesota Statutes, chapter 142E;
388	387		13.7 (2) general assistance, Minnesota supplemental aid, and food support under Minnesota
389	388		13.8Statutes, chapter 256D;
390	389		13.9 (3) housing support under Minnesota Statutes, chapter 256I;
391	390		13.10 (4) the Minnesota family investment program under Minnesota Statutes, chapter 142G;
392	391		13.11and
393	392		13.12 (5) economic assistance programs under Minnesota Statutes, chapter 256P.
394	393		13.13 (g) The commissioner of human services must not consider stipend payments under this
395	394		13.14section as income or assets under Minnesota Statutes, section 256B.056, subdivision 1a,
396	395		13.15paragraph (a); 3; or 3c, or for persons with eligibility determined under Minnesota Statutes,
397	396		13.16section 256B.057, subdivision 3, 3a, or 3b.
398	397		13.17 EFFECTIVE DATE.This section is effective the day following final enactment.
399	398		13.18Sec. 11. APPROPRIATION; SELF-DIRECTED COLLECTIVE BARGAINING
400	399		13.19AGREEMENT; HEALTH CARE COST STIPENDS.
401	400		13.20 $30,750,000 in fiscal year 2026 is appropriated from the general fund to the commissioner
402		-	13.21of human services for stipends of $1,200 to collective ~~bargaining unit members for retention~~
403		-	13.~~22and defraying any~~ health ~~insurance~~ costs ~~they may incur~~. ~~Stipends are available once per~~
404		-	13.~~23fiscal year per member for fiscal year 2026 and fiscal year 2027. Of this amount,~~ $750,000
405		-	13.~~24is for administration of the health care cost stipends. This~~ is ~~a onetime appropriation and is~~
406		-	13.~~25available until June 30,~~ ~~2027.~~
407		-	13.~~26Sec. 12. APPROPRIATION~~; ~~SELF-DIRECTED COLLECTIVE BARGAINING~~
408		-	13.~~27AGREEMENT; TRAINING STIPENDS~~
409		-	13.28 $~~2,250,000 in fiscal year 2026 is appropriated from~~ the ~~general fund to the commissioner~~
410		-	13.~~29of human services for onetime stipends of $750 for collective bargaining unit members~~ who
411		-	13.~~30complete designated, voluntary training made available through or~~ recommended by the
	401	+	13.21of human services for onetime stipends of $1,200 to workers covered by the SEIU collective
	402	+	13.22bargaining agreement as partial reimbursement for health care costs. Of this amount,
	403	+	13.23$750,000 is for administration of the health care cost stipends. This is a onetime appropriation
	404	+	13.24and is available until June 30, 2027.
	405	+	13.25Sec. 12. APPROPRIATION; SELF-DIRECTED COLLECTIVE BARGAINING
	406	+	13.26AGREEMENT; TRAINING STIPENDS
	407	+	13.27 $2,250,000 in fiscal year 2026 is appropriated from the general fund to the commissioner
	408	+	13.28of human services for onetime stipends of $750 to workers covered by the SEIU collective
	409	+	13.29bargaining agreement who complete designated, voluntary training made available through
	410	+	13.30or recommended by the State Provider Cooperation Committee. Of this amount, $250,000
412	411		13Sec. 12.
413		-	~~S2640-1 1st Engrossment~~~~SF2640~~ REVISOR AGW 14.~~1State Provider Cooperation Committee. Of this amount, $250,000 is~~ for administration of
414		-	14.~~2the training stipends. This is a onetime appropriation and is available until~~ June 30, 2027.
	412	+	25-04537 as introduced03/11/25 REVISOR AGW/NS 14.1is for administration of the training stipends. This is a onetime appropriation and is available
	413	+	14.2until June 30, 2027.
415	414		14.3 Sec. 13. APPROPRIATION; SELF-DIRECTED COLLECTIVE BARGAINING
416	415		14.4AGREEMENT; ORIENTATION PROGRAM.
417	416		14.5 $5,000,000 in fiscal year 2026 and $500,000 in fiscal year 2027 are appropriated from
418		-	14.6the general fund to the commissioner of human services for an orientation program defined
419		-	14.7by the SEIU collective bargaining agreement. Of these amounts, $3,000,000 in fiscal year
420		-	14.82026 is a onetime appropriation for orientation start-up costs and is available until June 30,
421		-	14.92027. Of these amounts, $2,000,000 in fiscal year 2026 and $500,000 in fiscal year 2027
422		-	14.10are for ongoing orientation-related costs.
423		-	14.11Sec. 14. APPROPRIATION; SELF-DIRECTED COLLECTIVE BARGAINING
424		-	14.12AGREEMENT; MINNESOTA CAREGIVER DEFINED CONTRIBUTION
425		-	14.13RETIREMENT FUND TRUST.
426		-	14.14 $350,000 in fiscal year 2026 is appropriated from the general fund to the commissioner
427		-	14.15of human services for a vendor to create the Minnesota Caregiver Defined Contribution
428		-	14.16Retirement Fund Trust under Minnesota Statutes, section 179A.54, subdivision 12. This is
429		-	14.17a onetime appropriation and is available until June 30, 2027.
	417	+	14.6the general fund to the commissioner of human services for an orientation program for
	418	+	14.7workers covered by the SEIU collective bargaining agreement. Of these amounts, $3,000,000
	419	+	14.8in fiscal year 2026 is a onetime appropriation for orientation start-up grants and is available
	420	+	14.9until June 30, 2027. Of these amounts, $1,500,000 in fiscal year 2026 is a onetime
	421	+	14.10appropriation for onetime $100 payments to workers covered by the SEIU collective
	422	+	14.11bargaining agreement who complete voluntary orientation requirements. Of these amounts,
	423	+	14.12$500,000 in fiscal year 2026 and $500,000 in fiscal year 2027 are for orientation-related
	424	+	14.13costs.
	425	+	14.14Sec. 14. APPROPRIATION; SELF-DIRECTED COLLECTIVE BARGAINING
	426	+	14.15AGREEMENT; MINNESOTA CAREGIVER DEFINED CONTRIBUTION
	427	+	14.16RETIREMENT FUND TRUST.
	428	+	14.17 $350,000 in fiscal year 2026 is appropriated from the general fund to the commissioner
	429	+	14.18of human services for the creation of the Minnesota Caregiver Defined Contribution
	430	+	14.19Retirement Fund Trust under Minnesota Statutes, section 179A.54, subdivision 12. The
	431	+	14.20commissioner shall disburse the appropriation to the board of trustees of the Minnesota
	432	+	14.21Caregiver Defined Contribution Retirement Fund Trust. This is a onetime appropriation
	433	+	14.22and is available until June 30, 2027.
430	434		14Sec. 14.
431		-	~~S2640-1 1st Engrossment~~~~SF2640~~ REVISOR AGW
	435	+	25-04537 as introduced03/11/25 REVISOR AGW/NS