1.1 A bill for an act 1.2 relating to behavioral health; the Minnesota Recovery Residence Certification Act; 1.3 establishing a certification system for recovery residences; modifying housing 1.4 support eligibility and regulations; establishing criminal penalties; appropriating 1.5 money; amending Minnesota Statutes 2024, sections 256I.03, by adding 1.6 subdivisions; 256I.04, subdivisions 1, 2a, 2f; 491A.01, by adding a subdivision; 1.7 proposing coding for new law in Minnesota Statutes, chapter 254B. 1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.9 Section 1. [254B.25] SHORT TITLE. 1.10 Sections 254B.25 to 254B.267 may be referred to as the "Minnesota Recovery Residence 1.11Certification Act." 1.12 Sec. 2. [254B.251] DEFINITIONS. 1.13 Subdivision 1.Scope.The terms used in sections 254B.25 to 254B.267 have the meanings 1.14given in this section. 1.15 Subd. 2.Applicant."Applicant" means any individual, organization, or entity who has 1.16applied for certification of a recovery residence. 1.17 Subd. 3.Certified recovery residence."Certified recovery residence" means a recovery 1.18residence that has completed the application process and been approved for certification by 1.19a certifying organization or that has been automatically certified pursuant to section 1.20254B.252, subdivision 3. 1.21 Subd. 4.Certifying organization."Certifying organization" means an organization 1.22under contract with or otherwise designated by the commissioner and tasked with the 1.23responsibility of certifying recovery residences under sections 254B.25 to 254B.267. 1Sec. 2. 25-01994 as introduced03/12/25 REVISOR DTT/CH SENATE STATE OF MINNESOTA S.F. No. 3060NINETY-FOURTH SESSION (SENATE AUTHORS: MANN) OFFICIAL STATUSD-PGDATE Introduction and first reading03/27/2025 Referred to Human Services 2.1 Subd. 5.Commissioner."Commissioner" means the commissioner of health. The 2.2commissioner is responsible for the certification of recovery residences under sections 2.3254B.25 to 254B.267. 2.4 Subd. 6.Community residence."Community residence" means a residential living 2.5arrangement for unrelated individuals with disabilities living as a single functional family 2.6in a single dwelling unit who are in need of the mutual support furnished by other residents 2.7of the community residence as well as support services, if any, provided by the staff, if any, 2.8of the community residence. A community residence seeks to emulate a biological family 2.9to foster normalization of its residents and integrate them into the surrounding community. 2.10The term does not include any other group living arrangement for unrelated individuals 2.11who are not disabled. 2.12 Subd. 7.Co-occurring disorder."Co-occurring disorder" means the coexistence of 2.13both a mental health and a substance use disorder. 2.14 Subd. 8.House manager."House manager" means an individual either designated by 2.15the owner or operator of a certified recovery residence or elected by the residents of a 2.16certified recovery residence who is the point of contact between residents and the owner or 2.17operator. 2.18 Subd. 9.Licensed state drug and alcohol treatment service provider."Licensed state 2.19drug and alcohol treatment service provider" means any individual or entity who is licensed, 2.20registered, or certified in Minnesota to treat substance use disorders or who has a Drug 2.21Addiction Treatment Act of 2000 waiver from the federal Substance Abuse and Mental 2.22Health Services Administration to treat individuals with opioid use disorder using medications 2.23approved for that indication by the United States Food and Drug Administration. 2.24 Subd. 10.National Alliance for Recovery Residences or NARR."National Alliance 2.25for Recovery Residences" or "NARR" is a nonprofit organization with a nationally recognized 2.26standard for the certification of recovery residences that works with and supports 2.27state-affiliated organizations. 2.28 Subd. 11.Operator."Operator" means the lawful owner or lessee of a recovery residence 2.29or a person employed and designated by the owner or lessee of the recovery residence to 2.30have primary responsibility for oversight of the recovery residence, including but not limited 2.31to hiring and termination of recovery residence staff, recovery residence maintenance, and 2.32responding to complaints being investigated by the commissioner. This term does not apply 2.33to a level 1 recovery residence. 2Sec. 2. 25-01994 as introduced03/12/25 REVISOR DTT/CH 3.1 Subd. 12.Recovery."Recovery" means a process of change through which individuals 3.2improve their health and wellness, live a self-directed life, and strive to reach their full 3.3potential. 3.4 Subd. 13.Recovery peer."Recovery peer" means a person who is qualified according 3.5to section 245I.04, subdivision 18, to provide peer recovery support services within the 3.6scope of practice provided under section 245I.04, subdivision 19. 3.7 Subd. 14.Recovery residence.(a) "Recovery residence" means a type of community 3.8residence that provides a safe, healthy, family-like, substance-free living environment that 3.9supports individuals in recovery from substance use disorder. 3.10 (b) Recovery residences: 3.11 (1) emulate a biological family; 3.12 (2) are centered on peer support and community integration; 3.13 (3) benefit individuals in recovery by reinforcing the skills and choices that help support 3.14sustained recovery from substance use disorder and providing a supportive peer community 3.15to which residents are accountable, and ensuring access to mutual aid groups, recovery 3.16support services, and other needed services and supports; and 3.17 (4) may be located in single-family homes, multi-family dwellings, and mixed-use 3.18structures. 3.19 Subd. 15.Recovery residence registry."Recovery residence registry" means the list 3.20of recovery residences maintained by the commissioner that have applied for certification 3.21and have been approved or denied by the commissioner or from whom the commissioner 3.22has revoked certification. 3.23 Subd. 16.Resident."Resident" means an individual who resides in a recovery residence. 3.24 Subd. 17.Staff."Staff" means employees, contractors, or volunteers who provide 3.25monitoring, assistance, or other services for the use and benefit of a recovery residence and 3.26its residents. This term may include but is not limited to a house manager, recovery peers, 3.27and on-site counselors. 3.28 Subd. 18.Substance free."Substance free" means being free from the use of alcohol, 3.29illicit drugs, and the illicit use of prescribed drugs. This term does not prohibit medications 3.30prescribed, dispensed, or administered by a licensed health care professional, such as 3.31pharmacotherapies specifically approved by the United States Food and Drug Administration 3.32(FDA) for treatment of a substance use disorder as well as other medications approved by 3Sec. 2. 25-01994 as introduced03/12/25 REVISOR DTT/CH 4.1the FDA for the treatment of co-occurring disorders, when such medications are taken as 4.2directed. 4.3 Subd. 19.Substance use disorder."Substance use disorder" means a pattern of use of 4.4alcohol or other drugs leading to impairment that meets the applicable diagnostic criteria 4.5delineated in the latest edition of the Diagnostic and Statistical Manual of Disorders of the 4.6American Psychiatric Association. 4.7 Sec. 3. [254B.252] CERTIFICATION OF RECOVERY RESIDENCES. 4.8 Subdivision 1.In general.The commissioner shall establish and provide for the 4.9administration of a voluntary training and certification program for operators of recovery 4.10residences seeking certification under this section. The commissioner shall approve, contract 4.11with, or otherwise officially designate a certifying organization to perform one or more of 4.12the functions of the commissioner pursuant to this section or shall otherwise delegate such 4.13functions to the approved certifying organization. The approved certifying organization 4.14must be a nonprofit organization based in Minnesota and maintain a formal affiliate 4.15relationship with the organization maintaining the national standard selected by the 4.16commissioner. 4.17 Subd. 2.Maintenance of standards.The commissioner shall designate the national 4.18standard to be used by the certification program established pursuant to this section and the 4.19designated certifying organization shall maintain those standards and practices. 4.20 Subd. 3.Automatic certification.A recovery residence that has received a certificate 4.21or charter from the certifying organization and that provides documentation of the charter 4.22as required under subdivision 4, clause (11), does not need to meet any other requirements 4.23for certification, and the commissioner shall issue a certification under this section. 4.24Residences under this subdivision are not subject to inspections under subdivision 7 or 8. 4.25 Subd. 4.Application requirements.Applications for certification under this section 4.26must contain at a minimum: 4.27 (1) the name of the individual or organization applying for certification; 4.28 (2) the proposed name, if any, of the recovery residence; 4.29 (3) the address and telephone number of the recovery residence; 4.30 (4) the applicant's address and telephone number, if different from the address and 4.31telephone number of the recovery residence; 4Sec. 3. 25-01994 as introduced03/12/25 REVISOR DTT/CH 5.1 (5) the applicant's email address or, if an organization, the email address of the person 5.2responsible for the application; 5.3 (6) the name and contact information of the applicant's parent organization, if applicable; 5.4 (7) the maximum number of residents to be housed in the recovery residence; 5.5 (8) the square footage of space per person per bedroom; 5.6 (9) the name, address, and telephone number of the operator of the recovery residence, 5.7if different than the applicant; 5.8 (10) the applicant's signature and date signed; 5.9 (11) if the applicant qualifies under subdivision 3, documentation of a charter from the 5.10certifying organization; and 5.11 (12) any other information required by the certifying organization. 5.12 Subd. 5.Application documents.Except for applicants pursuant to subdivision 3, an 5.13applicant must submit at a minimum the following documents with the completed application 5.14and fee: 5.15 (1) if the premises for the recovery residence is leased, documentation from the owner 5.16that the applicant has permission from the owner to operate a recovery residence on the 5.17premises; 5.18 (2) a policy and procedures manual, if applicable; 5.19 (3) rules for residents; 5.20 (4) copies of all forms provided to residents, including but not limited to the recovery 5.21residence's medication, drug-testing, return-to-use, refund, and eviction or transfer policies; 5.22 (5) a copy of the resident fee schedule; 5.23 (6) proof of business insurance, including any general liability insurance, appropriate 5.24to the services provided, if applicable; and 5.25 (7) proof of completed background checks pursuant to chapter 245C. 5.26 Subd. 6.Application fee.Applicants shall submit a nonrefundable application fee in an 5.27amount to be determined by the certifying organization that shall be paid directly to the 5.28certifying organization for use by the organization to administer sections 254B.25 to 5.29254B.267. 5Sec. 3. 25-01994 as introduced03/12/25 REVISOR DTT/CH 6.1 Subd. 7.Inspection pursuant to application.Upon receiving a completed application, 6.2the certifying organization shall conduct an on-site inspection of the recovery residence to 6.3ensure the residence is in compliance with the requirements of sections 254B.25 to 254B.267. 6.4 Subd. 8.Ongoing inspections.The certifying organization shall inspect each certified 6.5recovery residence at least once every two years to ensure continued compliance and may 6.6conduct additional inspections to confirm correction of any deficiencies or for the purpose 6.7of investigating a complaint. 6.8 Subd. 9.Correction of deficiencies in application.If the certifying organization 6.9identifies a deficiency in an application, the applicant has 30 days from the date of the 6.10notification of the deficiency to correct the deficiency, unless an extension is granted by 6.11the certifying organization. 6.12 Subd. 10.Correction of deficiencies.If the certifying organization becomes aware of 6.13a deficiency during the application process, through a subsequent inspection, or as a result 6.14of a verified complaint from a resident or staff member, the certifying organization shall 6.15require the recovery residence to submit a plan of action to correct the deficiency within a 6.16specified time period. The plan of action must include the steps that will be taken by the 6.17recovery residence or its operator to correct the deficiency and the time frame for making 6.18the corrections. The certifying organization shall establish the deadline for submission of 6.19the plan of action based on each residence's specific circumstances and the deficiencies 6.20required to be corrected. 6.21 Subd. 11.Certification.The certifying organization shall certify a recovery residence 6.22upon approval of the application and inspection. Applications must be approved or denied 6.23within 30 days of receiving all required documentation and completing the required 6.24inspection. The certification automatically terminates two years after issuance if the certifying 6.25organization does not renew the certification or grant an extension. Upon certification, the 6.26certifying organization shall issue the recovery residence a proof of certification. 6.27 Subd. 12.Content of proof of certification.The proof of certification issued to the 6.28recovery residence must include: 6.29 (1) the name of the holder of the certification, which may be the individual applicant or 6.30the name of the parent organization; 6.31 (2) the address of the certified recovery residence; 6.32 (3) the maximum number of persons to reside in the recovery residence; and 6.33 (4) the expiration date. 6Sec. 3. 25-01994 as introduced03/12/25 REVISOR DTT/CH 7.1 Subd. 13.Display of proof of certification.A recovery residence must publicly display 7.2a proof of certification in the recovery residence. 7.3 Subd. 14.Nontransferable.Certifications issued pursuant to this section cannot be 7.4transferred to an address other than the address in the application. An entity operating a 7.5recovery residence must apply for a new certification if there is a material change in the 7.6ownership or control of the entity. 7.7 Subd. 15.Required residency agreement provisions.In order to be certified under 7.8sections 254B.25 to 254B.267, a residency agreement between a resident and an owner or 7.9operator must contain: 7.10 (1) the recovery residence's termination and return-to-use policies; 7.11 (2) a notice that normal landlord-tenant protections do not apply to certified recovery 7.12residences and that if the resident violates the agreement, the resident may be removed 7.13within 24 hours; 7.14 (3) the length of time the recovery residence will keep the resident's property if the 7.15resident is terminated or vacates the property. The timelines under this clause must be no 7.16shorter than those in section 254B.255, subdivision 4; and 7.17 (4) the recovery residence's medication storage policies. 7.18 Subd. 16.Background checks.All controlling individuals, as defined in section 245A.02, 7.19subdivision 5a, of an applicant recovery residence must complete a background check under 7.20chapter 245C. This subdivision does not apply to recovery residences certified pursuant to 7.21subdivision 3. 7.22 Subd. 17.Removal of owner, operator, director, or chief financial officer.(a) A 7.23recovery residence may not be certified if, for a controlling individual: (1) less than five 7.24years have passed since the discharge of the sentence imposed, if any, for the offense; and 7.25(2) the individual has committed a violation of section: 254B.265 (patient brokering); 256.98 7.26(wrongfully obtaining assistance); 268.182 (fraud); 609.2325 (criminal abuse of a vulnerable 7.27adult); 609.2335 (financial exploitation of a vulnerable adult); 609.234 (failure to report 7.28maltreatment of a vulnerable adult); 609.466 (medical assistance fraud); or 609.527 (identity 7.29theft). 7.30 (b) If a controlling individual commits any of the crimes listed in paragraph (a), the 7.31certified recovery residence must immediately remove the controlling individual from any 7.32operating authority, begin removing or divesting the individual as a controlling individual, 7.33and notify the certifying organization. 7Sec. 3. 25-01994 as introduced03/12/25 REVISOR DTT/CH 8.1 (c) The certifying organization shall suspend the certification of any recovery residence 8.2that fails to comply with this subdivision. 8.3 (d) For the purpose of this subdivision, a violation of the crimes listed in paragraph (a) 8.4includes: 8.5 (1) a controlling individual's aiding and abetting, attempt, or conspiracy to commit any 8.6of the offenses listed in paragraph (a); 8.7 (2) an individual's offense in any other state or country where the elements of the offense 8.8are substantially similar to any of the offenses listed in paragraph (a); and 8.9 (3) a judicial determination other than a conviction. 8.10 Subd. 18.Renewal application.At least 30 days prior to the expiration of certification, 8.11a certified recovery residence shall submit a renewal application and any required fee to 8.12the certifying organization in a format required by the certifying organization. Upon 8.13inspection and determination by the certifying organization that the recovery residence 8.14continues to meet the requirements of sections 254B.25 to 254B.267, the certifying 8.15organization shall reissue a certification for a period of two years. 8.16 Subd. 19.Online applications.The certifying organization shall allow applicants to 8.17submit initial and renewal applications through an online portal that includes the ability to 8.18upload supporting documentation and electronically pay any fees. 8.19 Subd. 20.Online registry.The commissioner or certifying organization shall publish 8.20and maintain a publicly accessible online registry of all certified recovery residences through 8.21the commissioner's or certifying organization's website. The recovery residence registry 8.22must be updated at least weekly. 8.23 Subd. 21.Denial of applications.(a) The certifying organization may deny an application 8.24if: 8.25 (1) the applicant does not meet the requirements of sections 254B.25 to 254B.267 or 8.26the rules adopted pursuant to section 254B.254; or 8.27 (2) the applicant, owner, or operator provides materially false or misleading information 8.28on an initial or renewal application. 8.29 (b) If an application is denied pursuant to paragraph (a), clause (1), the certifying 8.30organization must notify the recovery residence of the reason for denial and require the 8.31residence to submit a plan of action under subdivision 10 to correct the deficiency by a 8.32specified date. If the recovery residence follows the action plan and corrects the deficiency, 8Sec. 3. 25-01994 as introduced03/12/25 REVISOR DTT/CH 9.1the certifying organization must reinspect the residence and certify the recovery residence 9.2if it meets the requirements of sections 254B.25 to 254B.267 and the rules adopted pursuant 9.3to section 254B.254. 9.4 Subd. 22.Uncertified recovery residences.Nothing in sections 254B.25 to 254B.267 9.5prohibits a recovery residence that is not certified from operating or advertising as an 9.6uncertified recovery residence or from offering residence to persons recovering from 9.7substance use disorder. 9.8 Sec. 4. [254B.253] SERVICES OFFERED AND LEVELS OF SUPPORT. 9.9 (a) The certifying organization shall certify applicants as level 1, peer run; level 2, 9.10monitored; or level 3, supervised recovery residences, as provided in this section. 9.11 (b) A level 1 peer-run recovery residence provides no on-site paid staff or operator of 9.12the recovery residence. A level 1 recovery residence is self-governed and democratically 9.13run. No on-site services are provided at a level 1 recovery residence, and no paid staff live 9.14or work within the residence. 9.15 (c) A level 2 monitored residence provides an on-site house manager or managers who 9.16may be compensated by free or reduced recovery residence fees. Residents participate in 9.17the governance of the residence in concert with the recovery residence staff and operator. 9.18A level 2 recovery residence provides community or house meetings, peer recovery supports, 9.19and involvement in self-help or off-site treatment services. 9.20 (d) A level 3 supervised recovery residence provides a paid house manager, administrative 9.21support, and a certified peer recovery support service provider. Resident participation in 9.22level 3 recovery residence governance varies, with most limited to senior resident 9.23participation. A level 3 recovery residence is affiliated with mutual support groups and 9.24clinical services in the community and provides community or house meetings, peer recovery 9.25supports, peer or professional life skills training on site, and peer recovery support services. 9.26A level 3 recovery residence may also provide other programmatic services, delivered by 9.27either peer or paid staff, but does not offer clinical services. 9.28 Sec. 5. [254B.254] RECOVERY RESIDENCE RULES. 9.29 The commissioner must incorporate standards adopted by the certifying organization 9.30into Minnesota Rules by reference. The standards must be based on standards issued by a 9.31national standard-setting body and meet the requirements of section 14.07, subdivision 4. 9.32If the certifying organization's standards do not meet the requirements of section 14.07, 9Sec. 5. 25-01994 as introduced03/12/25 REVISOR DTT/CH 10.1subdivision 4, the commissioner shall adopt rules based on the certifying organization's 10.2standards. 10.3 Sec. 6. [254B.255] TERMINATION OF RESIDENCY AND EVICTION. 10.4 Subdivision 1.In general.Notwithstanding any other provision of law or any rights or 10.5obligations under chapter 504B, a certified recovery residence may terminate a resident's 10.6residency for a substantial violation of the residency agreement. 10.7 Subd. 2.Writ of recovery.(a) If a resident substantially violates a residency agreement, 10.8a certified recovery residence may file a petition in district court or, if in Hennepin or Ramsey 10.9County, in housing court for a writ of recovery. The certified recovery residence must 10.10include with the petition: 10.11 (1) a copy of the residency agreement signed by the resident; 10.12 (2) a copy of the recovery residence's proof of certification; and 10.13 (3) an affidavit by an owner or operator of the facts that demonstrate a substantial 10.14violation of the residency agreement and that the resident has been notified in writing of 10.15their termination and the timelines under this section. 10.16 (b) When the court receives a petition that meets the requirements of this section and 10.17the court confirms that the recovery residency is currently certified in the recovery residence 10.18registry, the court must issue a writ of recovery no sooner than 24 hours excluding weekends 10.19and no later than 72 hours excluding weekends after the petition was filed. 10.20 Subd. 3.Appeal.A resident whose tenancy has been terminated by the recovery residence 10.21under this section may dispute the termination by filing in conciliation court within 30 days 10.22of the recovery residence a petition under subdivision 2 or, if applicable, the court issuing 10.23a writ of recovery. During the 30-day window or while a court case disputing the termination 10.24is open the residence is not required to allow the resident to continue residing on the premises 10.25but must not allow another or new resident to occupy the resident's room or bed. 10.26 Subd. 4.Return of property.(a) A resident whose tenancy is terminated pursuant to 10.27this section or who has voluntarily left the residence permanently may make a written request 10.28to the recovery residence for the return of any personal property left in the residence by the 10.29tenant on the resident's departure according to the timeline in the residency agreement, 10.30which must be at least 30 days from the date of: 10.31 (1) voluntary departure; 10.32 (2) termination; or 10Sec. 6. 25-01994 as introduced03/12/25 REVISOR DTT/CH 11.1 (3) final disposition of any court case disputing a termination under this section. 11.2 (b) Upon receipt of a request under paragraph (a), the recovery residence shall return 11.3any personal property belonging to the resident within 60 days from the date of the request. 11.4 (c) The recovery residence is not required to retain the personal property of a resident 11.5whose tenancy is terminated or who has voluntarily permanently left the residence 11.6indefinitely, and the recovery residence is not responsible for the relocation, storage, or 11.7safeguarding of the former resident's property beyond the time period in paragraph (a). 11.8 Sec. 7. [254B.256] RESIDENTS' RIGHTS. 11.9 Subdivision 1.In general.The commissioner must implement rules based on nationally 11.10recognized standards for recovery residents' rights, and the commissioner or certifying 11.11organization must maintain a list of the resident rights on its website. 11.12 Subd. 2.Complaint.A resident may file a complaint with the commissioner or certifying 11.13organization pursuant to section 254B.263 for the failure of a recovery residence to uphold 11.14the rights implemented pursuant to this section. 11.15Sec. 8. [254B.257] TRAINING AND TECHNICAL ASSISTANCE. 11.16 The commissioner or certifying organization shall develop a training and technical 11.17assistance program for the benefit of recovery residences and certified recovery residences 11.18to: 11.19 (1) assist owners, operators, house managers, and other staff with: 11.20 (i) developing an understanding of the statutes and regulations applicable to recovery 11.21residences in Minnesota; 11.22 (ii) completing the application process for certification; and 11.23 (iii) answering questions regarding the day-to-day operation of recovery residences; 11.24 (2) assist newly certified recovery residences; 11.25 (3) encourage consistency in standards among certified recovery residences; 11.26 (4) improve the quality and effectiveness of recovery residences and their ability to serve 11.27diverse communities; and 11.28 (5) promote a collaborative relationship between certified recovery residences and the 11.29certifying organization. 11Sec. 8. 25-01994 as introduced03/12/25 REVISOR DTT/CH 12.1 Sec. 9. [254B.258] ACCESS TO MEDICATION. 12.2 Subdivision 1.In general.All certified recovery residences shall ensure that a resident 12.3who is legitimately prescribed or dispensed medications, including medications for the 12.4treatment of substance use disorder, from an individual legally authorized to prescribe or 12.5dispense the medication has access to the medication and is not denied tenancy in a recovery 12.6residence or made to discontinue the use of the medication in order to stay at the residence. 12.7 Subd. 2.Security.(a) Certified recovery residences shall implement provisions for the 12.8safe storage of, and access to, resident medications. 12.9 (b) Policies under paragraph (a) must not impair the ability of the resident to take such 12.10medications as prescribed and must be disclosed to the resident at the time of intake. 12.11Sec. 10. [254B.259] ACCESS TO FUNDING AND REFERRALS. 12.12 Subdivision 1.Limitation on the use of funds.State, county, and local government 12.13money, including grant money and federal money administered by the state, used to support 12.14recovery residences must be available only to recovery residences certified under sections 12.15254B.25 to 254B.267. 12.16 Subd. 2.Limitation on referrals.(a) A licensed inpatient or outpatient substance use 12.17disorder treatment provider or state-funded or state-operated program may not make a 12.18referral of a prospective, current, or discharged patient to or accept a referral from a recovery 12.19residence unless, at the time of referral, the recovery residence is certified pursuant to 12.20sections 254B.25 to 254B.267. 12.21 (b) For purposes of this section, a licensed inpatient or outpatient substance use disorder 12.22treatment provider, state-funded or state-operated program, or recovery residence makes a 12.23referral if the provider or recovery residence informs a patient by any means about the name, 12.24address, or other details of a recovery residence or provider or informs a provider or recovery 12.25residence of any identifying details about a patient. 12.26 Subd. 3.No obligation.Nothing in this section requires a licensed substance use disorder 12.27treatment provider to refer a patient to or accept a referral from a recovery residence. 12.28 Subd. 4.Exceptions.Subdivision 2 does not apply to: 12.29 (1) referrals by a recovery residence to a licensed state drug and alcohol treatment service 12.30provider when the recovery residence or its owners, directors, operators, or employees do 12.31not benefit, directly or indirectly, from the referral; and 12Sec. 10. 25-01994 as introduced03/12/25 REVISOR DTT/CH 13.1 (2) the referral of a patient to or acceptance of a referral of a patient from a recovery 13.2residence: 13.3 (i) that has no direct or indirect financial or other referral relationship with the licensed 13.4service provider; and 13.5 (ii) where the residence or any resident of the residence does not receive a benefit, 13.6directly or indirectly, for the referral. 13.7 Sec. 11. [254B.26] LOCAL ZONING. 13.8 (a) Except as otherwise provided for in sections 254B.25 to 254B.267 and notwithstanding 13.9any other law or regulation to the contrary, certified recovery residences must be considered 13.10a permitted single-family residential use of property for the purposes of zoning and other 13.11land use regulations. Certified recovery residences must not be prohibited by operation of 13.12restrictive covenants or similar restrictions, regardless of when entered into, that cannot be 13.13met because of the nature of the certified recovery residence, including provisions that 13.14require the home's occupants be related, that the home must be occupied by the owner, or 13.15similar provisions. 13.16 (b) A restriction, prohibition, or other provision, including provisions related to the 13.17building or fire codes, is unenforceable if that restriction, prohibition, or provision does not 13.18also apply to similar types of structures in the same zoning district occupied by a single 13.19family. 13.20Sec. 12. [254B.261] DATA COLLECTION. 13.21 Subdivision 1.In general.(a) Certified recovery residences must submit any of the 13.22following outcome data on residents to the commissioner: 13.23 (1) abstinence from substance use; 13.24 (2) change in employment or education status; 13.25 (3) change in earnings; 13.26 (4) housing stability; 13.27 (5) admissions and readmissions to treatment; 13.28 (6) criminal justice involvement; 13.29 (7) child welfare involvement; 13.30 (8) civic engagement; 13Sec. 12. 25-01994 as introduced03/12/25 REVISOR DTT/CH 14.1 (9) access to needed physical or behavioral health services and social services; 14.2 (10) access to private or public health insurance; 14.3 (11) length of stay in the recovery residence; and 14.4 (12) number of terminations due to return to use. 14.5 (b) All data submitted pursuant to this section must be deidentified to remove any 14.6personally identifiable information. 14.7 Subd. 2.Study of state recovery housing needs.The commissioner or certifying 14.8organization may conduct an environmental scan and needs assessment study to determine 14.9the recovery housing needs of Minnesota and the location and adequacy of available 14.10residences to meet that need. Any initial study must be completed by ........ Subsequent 14.11studies must be completed no less frequently than once every three years following the 14.12initial study. 14.13 Subd. 3.Survey areas.The study provided by subdivision 3 may assess the adequacy: 14.14 (1) of recovery housing relative to population in all areas of the state; 14.15 (2) of low-cost or subsidized recovery residences; and 14.16 (3) of recovery housing for underserved and difficult-to-serve populations, including 14.17parents with children; pregnant women; reentry populations; persons living with HIV; 14.18ethnic, racial, and other minorities; physically disabled persons; and Tribal communities. 14.19 Subd. 4.Annual report.(a) The commissioner or certifying organization shall analyze 14.20any data collected pursuant to subdivisions 1 and 3 and issue an annual report to the governor 14.21and the chairs and ranking minority members of the legislative committees with jurisdiction 14.22over substance use disorder treatment assessing the effectiveness of certified recovery 14.23residences in Minnesota, including any outcomes determined by a study conducted pursuant 14.24to subdivision 4. 14.25 (b) The commissioner or certifying organization shall make the annual report under this 14.26subdivision available on its website for use by the public. 14.27Sec. 13. [254B.262] SANCTIONS. 14.28 Subdivision 1.Suspension.(a) The certifying organization shall suspend a certification 14.29if: 14Sec. 13. 25-01994 as introduced03/12/25 REVISOR DTT/CH 15.1 (1) the nature or number of violations revealed by any type of inspection or investigation 15.2of a recovery residence indicates a direct risk to the life, health, or safety of a resident, staff 15.3member, visitor, or other individual on the premises; or 15.4 (2) a certified recovery residence is not in compliance with any provision of sections 15.5254B.25 to 254B.267 and fails to: 15.6 (i) file a plan of action with the certifying organization to correct any identified 15.7deficiencies pursuant to section 254B.252, subdivision 10, within the time required by the 15.8certifying organization; or 15.9 (ii) remedy all deficiencies identified by the certifying organization within the time 15.10required, unless an extension of time is granted by the certifying organization. 15.11 (b) Suspensions must last until the certifying organization reinspects the property and 15.12finds no deficiencies. 15.13 Subd. 2.Nature or number of violations.In determining whether a violation poses a 15.14direct risk to the life, health, or safety of a resident, staff member, visitor, or other individual 15.15on the premises of the certified recovery residence, the certifying organization shall consider: 15.16 (1) repeated violations of statutes or rules; 15.17 (2) a pattern of violations; 15.18 (3) the types of violations; 15.19 (4) the severity of violations; and 15.20 (5) the number of violations. 15.21 Subd. 3.Revocation.The certifying organization must revoke a certification if: 15.22 (1) the applicant, owner, or operator provides materially false or misleading information 15.23on a renewal application, as part of an inspection, or in response to a complaint; or 15.24 (2) a recovery residence's certification is up for renewal and has been suspended for at 15.25least 30 days. 15.26 Subd. 4.Misrepresentation of certification; fine.A recovery residence that has not 15.27been certified pursuant sections 254B.25 to 254B.267 and holds itself out as a certified 15.28recovery residence shall be subject to an injunction and will be subject to a fine of not more 15.29than $....... for each violation. 15Sec. 13. 25-01994 as introduced03/12/25 REVISOR DTT/CH 16.1 Subd. 5.Notification.(a) The certifying organization shall provide written notification 16.2of any sanction to the recovery residence operator. The written notification must include 16.3an explanation of: 16.4 (1) the reason for the sanction; 16.5 (2) for suspensions, the requirement that the recovery residence submit an action plan 16.6under section 254B.252, subdivision 10; 16.7 (3) any rights of appeal the recovery residence may have; and 16.8 (4) the process for asserting those rights. 16.9 (b) The certifying organization shall provide written notification of a suspension or 16.10revocation of a certification to the county and municipality where the recovery residence 16.11is located. 16.12Sec. 14. [254B.263] COMPLAINTS. 16.13 Subdivision 1.In general.The certifying organization shall establish a toll-free telephone 16.14number or an online complaint form, or both, to receive complaints from residents, staff, 16.15and the general public regarding certified recovery residences. 16.16 Subd. 2.Types of complaints.The certifying organization must accept and review 16.17complaints that concern: 16.18 (1) the health of residents and safety of the recovery residence; 16.19 (2) management of the recovery residence, including but not limited to house 16.20environment, financial procedures, staffing, house rules and regulations, improper handling 16.21of resident terminations, and recovery support environment; or 16.22 (3) illegal activities or threats. 16.23 Subd. 3.Investigation.(a) Complaints regarding illegal activities or threats must be 16.24immediately referred to law enforcement in the jurisdiction where the recovery residence 16.25is located. The certifying organization shall continue to investigate matters referred to law 16.26enforcement that involve complaints contained in subdivision 2, clause (3), unless law 16.27enforcement requests the certifying organization to stay its investigation. 16.28 (b) The certifying organization shall investigate all other types of complaints under this 16.29section and may take any action necessary to conduct an investigation, including but not 16.30limited to interviewing the recovery residence operator, house manager, staff, and residents, 16.31and conducting an inspection of the premises. 16Sec. 14. 25-01994 as introduced03/12/25 REVISOR DTT/CH 17.1 Subd. 4.Anonymity.When making a complaint pursuant to this section, an individual 17.2must disclose their identity to the certifying organization. Unless ordered by a court or 17.3authorized by the complainant, the commissioner or certifying organization must not disclose 17.4the complainant's identity. 17.5 Subd. 5.Prohibition against retaliation.A recovery residence owner, operator, director, 17.6staff member including house manager, volunteer, or resident must not be subject to 17.7retaliation, including but not limited to interference, threats, coercion, harassment, or 17.8discrimination for making any complaint against a recovery residence or against a recovery 17.9residence owner, operator, or chief financial officer. 17.10Sec. 15. [254B.264] RECONSIDERATION. 17.11 Subdivision 1.In general.A recovery residence may request reconsideration of a decision 17.12to deny an application, suspend or revoke certification, or impose a fine by notifying the 17.13commissioner by certified mail or personal service. The request must be made in writing. 17.14If sent by certified mail, the request must be postmarked and sent to the commissioner within 17.1520 calendar days after the certification holder received notification of the decision. If a 17.16request is made by personal service, it must be received by the commissioner within 20 17.17calendar days after the certification holder received notification of the decision. With the 17.18request for reconsideration, the certification holder may submit a written argument or 17.19evidence in support of the request for reconsideration. 17.20 Subd. 2.Administrative appeal.A recovery residence may request an administrative 17.21hearing pursuant to chapter 14 within 30 days of receiving notice of an adverse decision of 17.22the commissioner under this section. 17.23Sec. 16. [254B.265] CRIMES. 17.24 Subdivision 1.Patient brokering.(a) Whoever does any of the following acts commits 17.25the crime of patient brokering and may be sentenced as provided in subdivision 2: 17.26 (1) offers or pays a commission, benefit, bonus, rebate, kickback, or bribe, directly or 17.27indirectly, in cash or in kind, or engages in any split-fee arrangement, in any form whatsoever, 17.28to induce the referral of a patient or patronage to or from a licensed state drug and alcohol 17.29treatment service provider, health care provider, or health care facility; 17.30 (2) solicits or receives a commission, benefit, bonus, rebate, kickback, or bribe, directly 17.31or indirectly, in cash or in kind, or engages in any split-fee arrangement, in any form 17Sec. 16. 25-01994 as introduced03/12/25 REVISOR DTT/CH 18.1whatsoever, in return for referring a patient or patronage to or from a licensed state drug 18.2and alcohol treatment service provider, health care provider, or health care facility; 18.3 (3) solicits or receives a commission, benefit, bonus, rebate, kickback, or bribe, directly 18.4or indirectly, in cash or in kind, or engage in any split-fee arrangement, in any form 18.5whatsoever, in return for the acceptance or acknowledgment of treatment from a licensed 18.6state drug and alcohol treatment service provider, health care provider, or health care facility; 18.7or 18.8 (4) aids, abets, advises, or otherwise participates in the conduct prohibited under clauses 18.9(1) to (3). 18.10 (b) This subdivision does not apply to any payment, waiver of payment, or payment 18.11practice expressly authorized by United States Code, title 42, section 1320a-7b(b)(3). 18.12 Subd. 2.Penalty.(a) Whoever violates subdivision 1, when the total value of the 18.13commissions, benefits, bonuses, rebates, kickbacks, and bribes is less than $....... is guilty 18.14of a misdemeanor. 18.15 (b) Whoever violates subdivision 1, when the total value of the commissions, benefits, 18.16bonuses, rebates, kickbacks, and bribes is greater than $....... and less than $....... is guilty 18.17of a gross misdemeanor. 18.18 (c) Whoever violates subdivision 1, when the total value of the commissions, benefits, 18.19bonuses, rebates, kickbacks, and bribes is greater than $........ is guilty of a felony and may 18.20be sentenced to imprisonment for not more than ....... or to payment of a fine not to exceed 18.21$........ 18.22 Subd. 3.Unlawful referral.Any person who willfully and knowingly violates section 18.23254B.259, subdivision 2, is guilty of a ....... and may be sentenced to imprisonment for not 18.24more than ....... or to payment of a fine not to exceed $........ 18.25 Subd. 4.Fines.All fines collected pursuant to this section must be deposited into ....... 18.26fund for use by the commissioner to administer sections 254B.25 to 254B.267. 18.27Sec. 17. [254B.266] CONFIDENTIALITY. 18.28 Subdivision 1.Recovery residence records.Records of residents maintained by certified 18.29recovery residences are private data on individuals under chapter 13. 18.30 Subd. 2.Commissioner.The commissioner shall not maintain any personally identifiable 18.31information regarding any resident of a certified recovery residence in connection with its 18.32role under sections 254B.25 to 254B.267. 18Sec. 17. 25-01994 as introduced03/12/25 REVISOR DTT/CH 19.1 Sec. 18. [254B.267] FUNDING. 19.2 The commissioner shall pursue all federal funding, matching funds, and foundation or 19.3other charitable funding for the initial and ongoing costs associated with sections 254B.25 19.4to 254B.267. 19.5 Sec. 19. Minnesota Statutes 2024, section 256I.03, is amended by adding a subdivision 19.6to read: 19.7 Subd. 6a.Certified recovery residence."Certified recovery residence" has the meaning 19.8given in section 254B.251, subdivision 3. 19.9 Sec. 20. Minnesota Statutes 2024, section 256I.03, is amended by adding a subdivision 19.10to read: 19.11 Subd. 14c.Recovery residence registry."Recovery residence registry" has the meaning 19.12given in section 254B.251, subdivision 15. 19.13Sec. 21. Minnesota Statutes 2024, section 256I.04, subdivision 1, is amended to read: 19.14 Subdivision 1.Individual eligibility requirements.An individual is eligible for and 19.15entitled to a housing support payment to be made on the individual's behalf if the agency 19.16has approved the setting where the individual will receive housing support and the individual 19.17meets the requirements in paragraph (a), (b), (c), or (d), or (e). 19.18 (a) The individual is aged, blind, or is over 18 years of age with a disability as determined 19.19under the criteria used by the title II program of the Social Security Act, and meets the 19.20resource restrictions and standards of section 256P.02, and the individual's countable income 19.21after deducting the (1) exclusions and disregards of the SSI program, (2) the medical 19.22assistance personal needs allowance under section 256B.35, and (3) an amount equal to the 19.23income actually made available to a community spouse by an elderly waiver participant 19.24under the provisions of sections 256B.0575, paragraph (a), clause (4), and 256B.058, 19.25subdivision 2, is less than the monthly rate specified in the agency's agreement with the 19.26provider of housing support in which the individual resides. 19.27 (b) The individual meets a category of eligibility under section 256D.05, subdivision 1, 19.28paragraph (a), clauses (1), (3), (4) to (8), and (13), and paragraph (b), if applicable, and the 19.29individual's resources are less than the standards specified by section 256P.02, and the 19.30individual's countable income as determined under section 256P.06, less the medical 19.31assistance personal needs allowance under section 256B.35 is less than the monthly rate 19Sec. 21. 25-01994 as introduced03/12/25 REVISOR DTT/CH 20.1specified in the agency's agreement with the provider of housing support in which the 20.2individual resides. 20.3 (c) The individual lacks a fixed, adequate, nighttime residence upon discharge from a 20.4residential behavioral health treatment program, as determined by treatment staff from the 20.5residential behavioral health treatment program. An individual is eligible under this paragraph 20.6for up to three months, including a full or partial month from the individual's move-in date 20.7at a setting approved for housing support following discharge from treatment, plus two full 20.8months. 20.9 (d) The individual meets the criteria related to establishing a certified disability or 20.10disabling condition in paragraph (a) or (b) and lacks a fixed, adequate, nighttime residence 20.11upon discharge from a correctional facility, as determined by an authorized representative 20.12from a Minnesota-based correctional facility. An individual is eligible under this paragraph 20.13for up to three months, including a full or partial month from the individual's move-in date 20.14at a setting approved for housing support following release, plus two full months. Any 20.15income received by people who meet the disabling condition criteria established in paragraph 20.16(a) or (b) is not countable for the duration of eligibility under this paragraph. 20.17 (e) The individual lacks a fixed, adequate, and clinically indicated nighttime residence 20.18during the individual's enrollment and active participation in a licensed behavioral health 20.19treatment program that meets the level of care requirements under section 254B.19, 20.20subdivision 1, paragraph (a), clauses (1) to (4). An individual is eligible under this paragraph 20.21for up to three months, including a full or partial month from the individual's move-in date 20.22at a setting approved for housing support following discharge from treatment, plus two full 20.23months. 20.24Sec. 22. Minnesota Statutes 2024, section 256I.04, subdivision 2a, is amended to read: 20.25 Subd. 2a.License required; staffing qualifications.(a) Except as provided in paragraph 20.26(b), an agency may not enter into an agreement with an establishment to provide housing 20.27support unless: 20.28 (1) the establishment is licensed by the Department of Health as a hotel and restaurant; 20.29a board and lodging establishment; a boarding care home before March 1, 1985; or a 20.30supervised living facility, and the service provider for residents of the facility is licensed 20.31under chapter 245A. However, an establishment licensed by the Department of Health to 20.32provide lodging need not also be licensed to provide board if meals are being supplied to 20.33residents under a contract with a food vendor who is licensed by the Department of Health; 20Sec. 22. 25-01994 as introduced03/12/25 REVISOR DTT/CH 21.1 (2) the residence is: 21.2 (i) licensed by the commissioner of human services under Minnesota Rules, parts 21.39555.5050 to 9555.6265; 21.4 (ii) certified by a county human services agency prior to July 1, 1992, using the standards 21.5under Minnesota Rules, parts 9555.5050 to 9555.6265; 21.6 (iii) licensed by the commissioner under Minnesota Rules, parts 2960.0010 to 2960.0120, 21.7with a variance under section 245A.04, subdivision 9; or 21.8 (iv) licensed under section 245D.02, subdivision 4a, as a community residential setting 21.9by the commissioner of human services; or 21.10 (v) a certified recovery residence that is listed as in good standing on the recovery 21.11residence registry; or 21.12 (3) the facility is licensed under chapter 144G and provides three meals a day. 21.13 (b) The requirements under paragraph (a) do not apply to establishments exempt from 21.14state licensure because they are: 21.15 (1) located on Indian reservations and subject to tribal health and safety requirements; 21.16or 21.17 (2) supportive housing establishments where an individual has an approved habitability 21.18inspection and an individual lease agreement. 21.19 (c) Supportive housing establishments that serve individuals who have experienced 21.20long-term homelessness and emergency shelters must participate in the homeless management 21.21information system and a coordinated assessment system as defined by the commissioner. 21.22 (d) Effective July 1, 2016, an agency shall not have an agreement with a provider of 21.23housing support unless all staff members who have direct contact with recipients: 21.24 (1) have skills and knowledge acquired through one or more of the following: 21.25 (i) a course of study in a health- or human services-related field leading to a bachelor 21.26of arts, bachelor of science, or associate's degree; 21.27 (ii) one year of experience with the target population served; 21.28 (iii) experience as a mental health certified peer specialist according to section 256B.0615; 21.29or 21.30 (iv) meeting the requirements for unlicensed personnel under sections 144A.43 to 21.31144A.483; 21Sec. 22. 25-01994 as introduced03/12/25 REVISOR DTT/CH 22.1 (2) hold a current driver's license appropriate to the vehicle driven if transporting 22.2recipients; 22.3 (3) complete training on vulnerable adults mandated reporting and child maltreatment 22.4mandated reporting, where applicable; and 22.5 (4) complete housing support orientation training offered by the commissioner. 22.6 Sec. 23. Minnesota Statutes 2024, section 256I.04, subdivision 2f, is amended to read: 22.7 Subd. 2f.Required services.(a) In authorized settings under subdivision 2a, providers 22.8shall ensure that participants have at a minimum: 22.9 (1) food preparation and service for three nutritional meals a day on site; 22.10 (2) a bed, clothing storage, linen, bedding, laundering, and laundry supplies or service; 22.11 (3) housekeeping, including cleaning and lavatory supplies or service; and 22.12 (4) maintenance and operation of the building and grounds, including heat, water, garbage 22.13removal, electricity, telephone for the site, cooling, supplies, and parts and tools to repair 22.14and maintain equipment and facilities. 22.15 (b) In addition, when providers serve participants described in subdivision 1, paragraph 22.16(c), the providers are required to assist the participants in applying for continuing housing 22.17support payments before the end of the eligibility period. 22.18 (c) The requirements of paragraph (a) do not apply to a certified recovery residence that 22.19is listed as in good standing on the recovery residence registry. 22.20Sec. 24. Minnesota Statutes 2024, section 491A.01, is amended by adding a subdivision 22.21to read: 22.22 Subd. 12.Jurisdiction; recovery residency terminations.The conciliation court has 22.23jurisdiction to determine whether a certified recovery residence properly terminated a 22.24residency under section 254B.255. If the court finds that the resident was improperly 22.25terminated or removed from the residence, the court may order the recovery residence to 22.26allow the resident to return. 22.27Sec. 25. EFFECTIVE DATE. 22.28 Sections 1 to 24 are effective ........ 22Sec. 25. 25-01994 as introduced03/12/25 REVISOR DTT/CH 23.1 Sec. 26. SEVERABILITY. 23.2 If any provision of this act or the act's applicability to any person or circumstance is held 23.3invalid, the remainder of the act or the application of the provision to other persons or 23.4circumstances is not affected. 23.5 Sec. 27. APPROPRIATION. 23.6 $350,000 in fiscal year 2026 and $350,000 in fiscal year 2027 are appropriated from the 23.7general fund to the commissioner of ... to implement and operate the Minnesota Recovery 23.8Residence Certification Act under Minnesota Statutes, sections 254B.25 to 254B.267. 23Sec. 27. 25-01994 as introduced03/12/25 REVISOR DTT/CH