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You are receiving this email because you are the authorized agent of a Children's Residential Facility.
Governor Walz signed legislation that includes several provisions that that impact children's residential facilities. This email contains an overview of the changes to requirements that impact these programs. These are only summaries, please reference the link to session law at the end of each section for the specific requirements. We will email you a full implementation plan later this summer that will provide additional details about the changes.
Psychiatric Residential Treatment Facility report. DHS will work with psychiatric residential treatment facilities and other partners to propose legislative changes and submit a report to the legislature. The report will include recommendations on:
- expanding access to care provided in PRTFs
- developing licensing standards for PRTFs
- updating the rate methodology for services provided in PRTFs
MN Laws, 1st special session, chapter 3, article 15, section 7
Children’s mental health terminology change. Updates terminology throughout health and human services statutes by deleting the terms “emotional disturbance” and “severe emotional disturbance” and replacing them with “mental illness” and “serious mental illness.”
Also removes the term “out-of-home placement” and replaces it with “residential treatment and therapeutic foster care” throughout the children’s mental health act, sections 245.487 to 245.4887. MN Laws, chapter 38, article 8
Anti-kickback. The session law updates anti-kickback statutes to state that offering, giving, soliciting, or receiving anything of value to influence referrals or services could result in administrative sanctions, such as withholding payments or recovering overpayments. The session law also adds kickbacks to the MN criminal code. Laws of MN, chapter 38, article 5, sections 27, 28, and 32
Training on the program’s drug and alcohol policy. Beginning August 1, 2025, license holders must provide training to employees, subcontractors, and volunteers on the program’s drug and alcohol policy before the employee, subcontractor, or volunteer has direct contact with a person served by the program. Laws of MN, chapter 38, article 5, section 5
Overdose medication administration training. Clarifies that training on the use of opiate antagonists for emergency treatment of opioid overdose must occur before the staff person has direct contact with a person served by the program. Laws of MN, chapter 38, article 5, section 8.
Client bill of rights. Clarifies the applicability of the health care bill of rights to apply to clients in all similarly licensed programs. Laws of MN, chapter 38, article 5, section 4
License application and renewal fees. Effective January 1, 2026, license application fees and annual renewal fees will increase for most programs licensed by DHS. Children’s residential facilities were exempt from application and renewal fee increases. Application fees remain at $500 (245A.10 subd. 3 (d)) and annual license fees follow the fee schedule described in 245A.10 subd. 4 (d)). Laws of MN, 1st special session, chapter 9, article 10, sections 2, 6 and 8
Change of ownership. DHS may complete a review when owners on a license change. Whenever there is any change to ownership, the license holder must notify DHS of the change. License holders will be charged a fee for each license subject to the change of ownership exception under section 245A.043, subdivision 2, paragraph (b). Laws of MN, 1st special session, chapter 9, article 10, sections 3 and 7.
Child passenger restraint systems training. Aligns training language with 2024 legislative changes to require children up to age 9 to use a child passenger restraint. Laws of MN, 2025, chapter 3, article 14, sections 9 and 13
Background studies
Updates on legislative changes related to background studies, as they become available, will be posted on the "What's new" for background studies webpage.
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