1.1 A bill for an act
1.2 relating to human services; modifying licensing requirements for family adult
1.3 foster care homes; amending Minnesota Statutes 2024, sections 245A.02, by adding
1.4 subdivisions; 245A.03, subdivisions 6a, 7; 245A.042, by adding a subdivision;
1.5 245A.06, subdivision 1a; 256B.4914, subdivisions 6, 19; Laws 2023, chapter 61,
1.6 article 1, sections 47, subdivision 19; 85; repealing Laws 2023, chapter 61, article
1.7 1, section 32.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2024, section 245A.02, is amended by adding a subdivision
1.10to read:
1.11 Subd. 11a.Primary residence.(a) "Primary residence" means the location where the
1.12license holder lives and usually sleeps and from which the license holder has no present
1.13intention of moving without also intending to transfer the license.
1.14 (b) A license holder's primary residence does not change if the license holder leaves
1.15home to live temporarily at another residence without the intention of making the other
1.16location the license holder's permanent home.
1.17 (c) Without other supporting evidence that the license holder has moved, the
1.18commissioner must not determine that a license holder has a different primary residence
1.19than the one listed on the license if the license holder:
1.20 (1) owns, acquires, or leases another residence;
1.21 (2) uses a different location for the license holder's address on a driver's license,
1.22homestead declaration, tax form, or other official document, unless the address reflects a
1.23change made after the license holder obtained the license under this section; or
1Section 1.
25-04835 as introduced03/19/25 REVISOR DTT/HL
SENATE
STATE OF MINNESOTA
S.F. No. 3027NINETY-FOURTH SESSION
(SENATE AUTHORS: HOFFMAN)
OFFICIAL STATUSD-PGDATE
Introduction and first reading03/27/2025
Referred to Human Services 2.1 (3) lives separately from a spouse or children.
2.2 Sec. 2. Minnesota Statutes 2024, section 245A.02, is amended by adding a subdivision to
2.3read:
2.4 Subd. 11b.Primary caregiver.(a) "Primary caregiver" means the person primarily
2.5responsible for the supervision, oversight, and coordination of care for persons receiving
2.6services in an adult foster care home licensed under this chapter or chapter 245D.
2.7 (b) A license holder for an adult foster care home licensed under chapter 245A who is
2.8assisted without limitation by unpaid family members who also reside in the home or who
2.9visit the home as unpaid family members is still the primary caregiver if the assistance is
2.10under the direction and control of the license holder.
2.11 (c) A license holder for an adult foster care home licensed under chapter 245A who is
2.12assisted by paid staff or by unpaid volunteers not residing in the home is still the primary
2.13caregiver if the staff or volunteers provide no more than a total of 40 work hours of services
2.14per week and the assistance is under the direction and control of the license holder.
2.15 (d) A license holder for a family adult foster care home that also provides services
2.16licensed under chapter 245D who is assisted by paid staff or by unpaid volunteers not
2.17residing in the home is still the primary caregiver if the staff or volunteers provide no more
2.18than the total hourly amount of chapter 245D services called for in the service plans of the
2.19service recipients in the home, plus 40 work hours per week, and the assistance is under the
2.20direction and control of the license holder.
2.21 Sec. 3. Minnesota Statutes 2024, section 245A.03, subdivision 6a, is amended to read:
2.22 Subd. 6a.Adult foster care homes or community residential settings serving people
2.23with mental illness; certification.(a) The commissioner of human services shall issue a
2.24mental health certification for adult foster care homes licensed under this chapter and
2.25Minnesota Rules, parts 9555.5105 to 9555.6265, or community residential settings licensed
2.26under chapter 245D, settings that serve people with a primary diagnosis of mental illness
2.27where the home is not the primary residence of the license holder when a provider is
2.28determined to have met the requirements under paragraph (b)., if the setting is either:
2.29 (1) an adult foster care home licensed under this chapter and Minnesota Rules, parts
2.309555.5105 to 9555.6265; or
2.31 (2) a community residential setting licensed under chapter 245D.
2Sec. 3.
25-04835 as introduced03/19/25 REVISOR DTT/HL 3.1This certification is voluntary for license holders. The certification shall be printed on the
3.2license, and identified on the commissioner's public website.
3.3 (b) The requirements for certification are:
3.4 (1) all staff working in the adult foster care home or community residential setting have
3.5received at least seven hours of annual training under paragraph (c) covering all of the
3.6following topics:
3.7 (i) mental health diagnoses;
3.8 (ii) mental health crisis response and de-escalation techniques;
3.9 (iii) recovery from mental illness;
3.10 (iv) treatment options including evidence-based practices;
3.11 (v) medications and their side effects;
3.12 (vi) suicide intervention, identifying suicide warning signs, and appropriate responses;
3.13 (vii) co-occurring substance abuse and health conditions; and
3.14 (viii) community resources;
3.15 (2) a mental health professional, as defined in section 245.462, subdivision 18, or a
3.16mental health practitioner as defined in section 245.462, subdivision 17, are available for
3.17consultation and assistance;
3.18 (3) there is a protocol in place to address a mental health crisis; and
3.19 (4) there is a crisis plan for each individual that identifies who is providing clinical
3.20services and their contact information, and includes an individual crisis prevention and
3.21management plan developed with the individual.
3.22 (c) The training curriculum must be approved by the commissioner of human services
3.23and must include a testing component after training is completed. Training must be provided
3.24by a mental health professional or a mental health practitioner. Training may also be provided
3.25by an individual living with a mental illness or a family member of such an individual, who
3.26is from a nonprofit organization with a history of providing educational classes on mental
3.27illnesses approved by the Department of Human Services to deliver mental health training.
3.28Staff must receive three hours of training in the areas specified in paragraph (b), clause (1),
3.29items (i) and (ii), prior to working alone with residents. The remaining hours of mandatory
3.30training, including a review of the information in paragraph (b), clause (1), item (ii), must
3.31be completed within six months of the hire date. For programs licensed under chapter 245D,
3Sec. 3.
25-04835 as introduced03/19/25 REVISOR DTT/HL 4.1training under this section may be incorporated into the 30 hours of staff orientation required
4.2under section 245D.09, subdivision 4.
4.3 (d) License holders seeking certification under this subdivision must request this
4.4certification on forms provided by the commissioner and must submit the request to the
4.5county licensing agency in which the home or community residential setting is located. The
4.6county licensing agency must forward the request to the commissioner with a county
4.7recommendation regarding whether the commissioner should issue the certification.
4.8 (e) Ongoing compliance with the certification requirements under paragraph (b) shall
4.9be reviewed by the county licensing agency at each licensing review. When a county licensing
4.10agency determines that the requirements of paragraph (b) are not met, the county shall
4.11inform the commissioner, and the commissioner will remove the certification.
4.12 (f) A denial of the certification or the removal of the certification based on a determination
4.13that the requirements under paragraph (b) have not been met by the adult foster care or
4.14community residential setting license holder are not subject to appeal. A license holder that
4.15has been denied a certification or that has had a certification removed may again request
4.16certification when the license holder is in compliance with the requirements of paragraph
4.17(b).
4.18 Sec. 4. Minnesota Statutes 2024, section 245A.03, subdivision 7, is amended to read:
4.19 Subd. 7.Licensing moratorium.(a) The commissioner shall not issue an initial license
4.20under this chapter for child foster care licensed under Minnesota Rules, parts 2960.3000 to
4.212960.3340, which that does not include child foster residence settings with residential
4.22program certifications for compliance with the Family First Prevention Services Act under
4.23section 245A.25, subdivision 1, paragraph (a), or for a physical location that will not be the
4.24primary residence of the license holder for the entire period of licensure. The commissioner
4.25shall not issue an initial license under this chapter for adult foster care licensed under
4.26Minnesota Rules, parts 9555.5105 to 9555.6265, under this chapter for a physical location
4.27that will not be the primary residence of the license holder for the entire period of licensure.
4.28If a child foster residence setting that was previously exempt from the licensing moratorium
4.29under this paragraph has its Family First Prevention Services Act certification rescinded
4.30under section 245A.25, subdivision 9, or the commissioner shall revoke the license according
4.31to section 245A.07. If a family adult foster care home license is issued during this
4.32moratorium, and the license holder changes the license holder's primary residence away
4.33from the physical location of the foster care license without first obtaining permission from
4.34the commissioner to also relocate the family adult foster care home to the license holder's
4Sec. 4.
25-04835 as introduced03/19/25 REVISOR DTT/HL 5.1new primary residence, the commissioner shall revoke the license according to section
5.2245A.07. The commissioner shall not issue an initial license for a community residential
5.3setting licensed under chapter 245D. When approving an exception under this paragraph,
5.4the commissioner shall consider the resource need determination process in paragraph (h),
5.5the availability of foster care licensed beds in the geographic area in which the licensee
5.6seeks to operate, the results of a person's choices during their annual assessment and service
5.7plan review, and the recommendation of the local county board. The determination by the
5.8commissioner is final and not subject to appeal. Exceptions to the moratorium include:
5.9 (1) a license for a person in a foster care setting that is not the primary residence of the
5.10license holder and where at least 80 percent of the residents are 55 years of age or older;
5.11 (2) foster care licenses replacing foster care licenses in existence on May 15, 2009, or
5.12community residential setting licenses replacing adult foster care licenses in existence on
5.13December 31, 2013, and determined to be needed by the commissioner under paragraph
5.14(b);
5.15 (3) new foster care licenses or community residential setting licenses determined to be
5.16needed by the commissioner under paragraph (b) for the closure of a nursing facility, ICF/DD,
5.17or regional treatment center; restructuring of state-operated services that limits the capacity
5.18of state-operated facilities; or allowing movement to the community for people who no
5.19longer require the level of care provided in state-operated facilities as provided under section
5.20256B.092, subdivision 13, or 256B.49, subdivision 24; or
5.21 (4) new foster care licenses or community residential setting licenses determined to be
5.22needed by the commissioner under paragraph (b) for persons requiring hospital-level care;
5.23or.
5.24 (5) new community residential setting licenses determined necessary by the commissioner
5.25for people affected by the closure of homes with a capacity of five or six beds currently
5.26licensed as supervised living facilities licensed under Minnesota Rules, chapter 4665, but
5.27not designated as intermediate care facilities. This exception is available until June 30, 2025.
5.28 (b) The commissioner shall determine the need for newly licensed foster care homes or
5.29community residential settings as defined under this subdivision. As part of the determination,
5.30the commissioner shall consider the availability of foster care capacity in the area in which
5.31the licensee seeks to operate, and the recommendation of the local county board. The
5.32determination by the commissioner must be final. A determination of need is not required
5.33for a change in ownership at the same address.
5Sec. 4.
25-04835 as introduced03/19/25 REVISOR DTT/HL 6.1 (c) When an adult resident served by the program moves out of a foster home that is not
6.2the primary residence of the license holder according to section 256B.49, subdivision 15,
6.3paragraph (f), or the or an adult community residential setting, the county shall immediately
6.4inform the Department of Human Services Licensing Division. The department may decrease
6.5the statewide licensed capacity for adult foster care settings.
6.6 (d) Residential settings that would otherwise be subject to the decreased license capacity
6.7established in paragraph (c) must be exempt if the license holder's beds are occupied by
6.8residents whose primary diagnosis is mental illness and the license holder is certified under
6.9the requirements in subdivision 6a or section 245D.33.
6.10 (e) A resource need determination process, managed at the state level, using the available
6.11data required by section 144A.351, and other data and information must be used to determine
6.12where the reduced capacity determined under section 256B.493 will be implemented. The
6.13commissioner shall consult with the stakeholders described in section 144A.351, and employ
6.14a variety of methods to improve the state's capacity to meet the informed decisions of those
6.15people who want to move out of corporate foster care or community residential settings,
6.16long-term service needs within budgetary limits, including seeking proposals from service
6.17providers or lead agencies to change service type, capacity, or location to improve services,
6.18increase the independence of residents, and better meet needs identified by the long-term
6.19services and supports reports and statewide data and information.
6.20 (f) At the time of application and reapplication for licensure, the applicant and the license
6.21holder that are subject to the moratorium or an exclusion established in paragraph (a) are
6.22required to inform the commissioner whether the physical location where the foster care
6.23will be provided is or will be the primary residence of the license holder for the entire period
6.24of licensure. If the primary residence of the applicant or license holder changes, the applicant
6.25or license holder must notify the commissioner immediately. The commissioner shall print
6.26on the foster care license certificate whether or not the physical location is the primary
6.27residence of the license holder.
6.28 (g) License holders of foster care homes identified under paragraph (f) that are not the
6.29primary residence of the license holder and that also provide services in the foster care home
6.30that are covered by a federally approved home and community-based services waiver, as
6.31authorized under chapter 256S or section 256B.092 or 256B.49, must inform the human
6.32services licensing division that the license holder provides or intends to provide these
6.33waiver-funded services.
6Sec. 4.
25-04835 as introduced03/19/25 REVISOR DTT/HL 7.1 (h) The commissioner may adjust capacity to address needs identified in section
7.2144A.351. Under this authority, the commissioner may approve new licensed settings or
7.3delicense existing settings. Delicensing of settings will be accomplished through a process
7.4identified in section 256B.493.
7.5 (i) The commissioner must notify a license holder when its corporate foster care or
7.6community residential setting licensed beds are reduced under this section. The notice of
7.7reduction of licensed beds must be in writing and delivered to the license holder by certified
7.8mail or personal service. The notice must state why the licensed beds are reduced and must
7.9inform the license holder of its right to request reconsideration by the commissioner. The
7.10license holder's request for reconsideration must be in writing. If mailed, the request for
7.11reconsideration must be postmarked and sent to the commissioner within 20 calendar days
7.12after the license holder's receipt of the notice of reduction of licensed beds. If a request for
7.13reconsideration is made by personal service, it must be received by the commissioner within
7.1420 calendar days after the license holder's receipt of the notice of reduction of licensed beds.
7.15 (j) The commissioner shall not issue an initial license for children's residential treatment
7.16services licensed under Minnesota Rules, parts 2960.0580 to 2960.0700, under this chapter
7.17for a program that Centers for Medicare and Medicaid Services would consider an institution
7.18for mental diseases. Facilities that serve only private pay clients are exempt from the
7.19moratorium described in this paragraph. The commissioner has the authority to manage
7.20existing statewide capacity for children's residential treatment services subject to the
7.21moratorium under this paragraph and may issue an initial license for such facilities if the
7.22initial license would not increase the statewide capacity for children's residential treatment
7.23services subject to the moratorium under this paragraph.
7.24 Sec. 5. Minnesota Statutes 2024, section 245A.042, is amended by adding a subdivision
7.25to read:
7.26 Subd. 5.Fair notice of investigative criteria; adult foster care.The commissioner
7.27must provide specific written notice to all adult foster care license holders of all criteria the
7.28commissioner intends to use while enforcing the requirements of this chapter and chapter
7.29245D. The commissioner's written notice must include any interpretive guidance or other
7.30source of information, including government documents or other official records the
7.31commissioner or the commissioner's licensing investigators rely upon while investigating
7.32and making determinations regarding compliance with this chapter and chapter 245D. The
7.33commissioner must provide the specific written notice to all adult foster care license holders
7.34concurrent with the issuance of an initial adult foster care license under this chapter or
7Sec. 5.
25-04835 as introduced03/19/25 REVISOR DTT/HL 8.1chapter 245D at least 90 calendar days prior to the renewal of an adult foster care license
8.2under this chapter or chapter 245D and at least 90 calendar days prior to any enforcement
8.3action under this chapter.
8.4 Sec. 6. Minnesota Statutes 2024, section 245A.06, subdivision 1a, is amended to read:
8.5 Subd. 1a.Correction orders and conditional licenses for programs licensed as home
8.6and community-based services.(a) For programs licensed under both this chapter and
8.7chapter 245D, if the license holder operates more than one service site under a single license
8.8governed by chapter 245D, the order issued under this section shall be specific to the service
8.9site or sites at which the violations of applicable law or rules occurred. The order shall not
8.10apply to other service sites governed by chapter 245D and operated by the same license
8.11holder unless the commissioner has included in the order the articulable basis for applying
8.12the order to another service site.
8.13 (b) If the commissioner has issued more than one license to the license holder under this
8.14chapter, the conditions imposed under this section shall be specific to the license for the
8.15program at which the violations of applicable law or rules occurred and shall not apply to
8.16other licenses held by the same license holder if those programs are being operated in
8.17substantial compliance with applicable law and rules.
8.18 (c) For license holders suspected of violating the requirement that family adult foster
8.19care be provided in the license holder's primary residence or that the license holder be the
8.20primary caregiver, before issuing a correction order, issuing an order of conditional license,
8.21or imposing any licensing sanctions under section 245A.07, the commissioner must:
8.22 (1) review all guidance for determining a family adult foster care license holder's primary
8.23residence or status as the primary caregiver;
8.24 (2) conduct audio-recorded interviews of all persons with likely personal knowledge of
8.25the license holder's primary residence or status as primary caregiver, including residents of
8.26the family adult foster care home, the license holder, the license holder's coresiding family
8.27members, and the family members, appointed guardians, and social workers of residents of
8.28the family adult foster care home;
8.29 (3) ensure that commissioner's investigators have performed a complete and thorough
8.30investigation of the suspected violation, including investigation of all criteria identified by
8.31the commissioner pursuant to section 245A.042, subdivision 5, and all considerations set
8.32forth in section 245A.04, subdivision 6.
8Sec. 6.
25-04835 as introduced03/19/25 REVISOR DTT/HL 9.1 Sec. 7. Minnesota Statutes 2024, section 256B.4914, subdivision 6, is amended to read:
9.2 Subd. 6. Residential support services; generally.(a) For purposes of this section,
9.3residential support services includes 24-hour customized living services, community
9.4residential services, customized living services, family residential services, and integrated
9.5community supports.
9.6 (b) A unit of service for residential support services is a day. Any portion of any calendar
9.7day, within allowable Medicaid rules, where an individual spends time in a residential setting
9.8is billable as a day. The number of days authorized for all individuals enrolling in residential
9.9support services must include every day that services start and end.
9.10 (c) When the available shared staffing hours in a residential setting are insufficient to
9.11meet the needs of an individual who enrolled in residential support services after January
9.121, 2014, then individual staffing hours shall be used.
9.13 EFFECTIVE DATE.This section is effective retroactively from May 25, 2023.
9.14 Sec. 8. Minnesota Statutes 2024, section 256B.4914, subdivision 19, is amended to read:
9.15 Subd. 19.Payments for family residential and life sharing services.The commissioner
9.16shall establish rates for family residential services and life sharing services based on a
9.17person's assessed need, as described in the federally-approved waiver plans. Rates for life
9.18sharing services must be ten percent higher than the corresponding family residential services
9.19rate.
9.20 EFFECTIVE DATE.This section is effective retroactively from May 25, 2023.
9.21 Sec. 9. Laws 2023, chapter 61, article 1, section 47, subdivision 19, is amended to read:
9.22 Subd. 19.Payments for family residential and life sharing services.The commissioner
9.23shall establish rates for family residential services and life sharing services based on a
9.24person's assessed need, as described in the federally-approved waiver plans. Rates for life
9.25sharing services must be ten percent higher than the corresponding family residential services
9.26rate.
9.27 EFFECTIVE DATE.This section is effective retroactively from May 25, 2023.
9.28 Sec. 10. Laws 2023, chapter 61, article 1, section 85, is amended to read:
9.29 Sec. 85. REPEALER.
9.30 (a) Minnesota Statutes 2022, section 256B.4914, subdivision 9a, is repealed.
9Sec. 10.
25-04835 as introduced03/19/25 REVISOR DTT/HL 10.1 (b) Minnesota Statutes 2022, section 256B.4914, subdivision 6b, is repealed.
10.2 EFFECTIVE DATE.This section is effective retroactively from May 25, 2023.
10.3 Sec. 11. Laws 2023, chapter 61, article 1, section 85, the effective date, is amended to
10.4read:
10.5 EFFECTIVE DATE.Paragraph (a) This section is effective January 1, 2024, or upon
10.6federal approval, whichever is later, and paragraph (b) is effective January 1, 2026, or upon
10.7federal approval, whichever is later. The commissioner of human services shall notify the
10.8revisor of statutes when federal approval is obtained.
10.9 EFFECTIVE DATE.This section is effective retroactively from May 25, 2023.
10.10Sec. 12. DIRECTION TO THE COMMISSIONER OF HUMAN SERVICES;
10.11REMEDIAL LICENSING OF FAMILY ADULT FOSTER CARE.
10.12 (a) Notwithstanding Minnesota Statutes, sections 245A.03, subdivision 7, and 245A.04,
10.13subdivision 7, the commissioner shall accept applications for licensure under Minnesota
10.14Statutes, chapters 245A and 245D, from former adult foster care license holders whose
10.15license to provide family adult foster care was revoked after January 1, 2022, and before
10.16July 1, 2025, on the basis of suspicion of providing services in a home that was not the
10.17license holder's primary residence or that the license holder was not the primary caregiver.
10.18The commissioner shall review, evaluate, and act on the applications as required under
10.19Minnesota Statutes, section 245A.04, except that the commissioner must not consider any
10.20prior correction orders, orders of conditional license, or sanction under Minnesota Statutes,
10.21section 245A.07, that were based on the applicant's provision of family adult foster care in
10.22a home that was not the license holder's primary residence or that the license holder was
10.23not the primary caregiver. If the commissioner determines that the applicant and the
10.24applicant's program complies with all applicable rules and laws, the commissioner shall
10.25issue a license.
10.26 (b) The deadline for submitting an application under this section is five years after the
10.27prior revocation became final.
10.28 EFFECTIVE DATE.This section is effective the day following final enactment.
10.29Sec. 13. REPEALER.
10.30 Laws 2023, chapter 61, article 1, section 32, is repealed.
10.31 EFFECTIVE DATE.This section is effective retroactively from May 25, 2023.
10Sec. 13.
25-04835 as introduced03/19/25 REVISOR DTT/HL Laws 2023, chapter 61, article 1, section 32
Sec. 32. Minnesota Statutes 2022, section 256B.4914, subdivision 6, is amended to read:
Subd. 6. Residential support services; generally.(a) For purposes of this section, residential
support services includes 24-hour customized living services, community residential services,
customized living services, family residential services, and integrated community supports.
(b) A unit of service for residential support services is a day. Any portion of any calendar day,
within allowable Medicaid rules, where an individual spends time in a residential setting is billable
as a day. The number of days authorized for all individuals enrolling in residential support services
must include every day that services start and end.
(c) When the available shared staffing hours in a residential setting are insufficient to meet the
needs of an individual who enrolled in residential support services after January 1, 2014, then
individual staffing hours shall be used.
EFFECTIVE DATE.This section is effective January 1, 2026, or upon federal approval,
whichever is later. The commissioner of human services shall notify the revisor of statutes when
federal approval is obtained.
1R
APPENDIX
Repealed Minnesota Session Laws: 25-04835