HF3520 (Legislative Session 94 (2025-2026))
Intensive residential treatment services and intensive nonresidential rehabilitative mental health services requirements modified, and room and board services specified to be eligible for behavioral health fund payment.
Related bill: SF3734
AI Generated Summary
Purpose
- Modernize and expand requirements for intensive residential treatment services (IRTS) and intensive nonresidential rehabilitative mental health services.
- Improve how treatment is planned, documented, and coordinated; clarify when and how payment for room and board is covered through the behavioral health fund; and raise standards for service delivery, especially for youth and people with substance use disorders.
Key Provisions at a Glance
- The bill strengthens initial and ongoing treatment planning for Intensive Residential Treatment Services, including rapid assessments after admission, structured treatment plans, ongoing reviews, and clear steps toward transitioning to another setting.
- It expands who can access behavioral health fund money for substance use and related services, including room and board payments for certain publicly funded health coverage enrollees.
- It updates standards for Intensive Nonresidential Rehabilitative services, especially around staff makeup, team structure, size, supervision, and accountability (including Youth ACT-related reporting).
Section 1 — Intensive Residential Treatment Services: Assessment, Planning, and Monitoring
- Within 12 hours of admission: license holder must evaluate and document immediate needs (health and safety, crisis needs, supports from family/employers, housing, legal issues).
- Within 24 hours: complete an initial treatment plan based on referrals and assessed needs.
- Treatment planning details: include crisis strategies, measurable goals and objectives, specific interventions, and the participants in planning. The client must participate, and a treatment supervisor must approve the plan if created by a behavioral health practitioner or trainee.
- Abuse prevention: an individual abuse prevention plan must be part of the initial treatment plan.
- Level of care and medical necessity: complete a level-of-care assessment within five days of admission and 60 days after admission; if medical necessity isn’t met, a supervisor must document why continued intensive services are medically necessary.
- Diagnostic and treatment plan updates: update standard diagnostic assessment within 10 days; update the individual treatment plan within 10 days, and then again at 40 and 70 days to focus on a successful transition out of Residential Treatment Services.
- Referral tracking: include referrals and resources, plus the staff responsible for follow-up; if a needed referral isn’t made, document why.
- Weekly reviews: mental health professionals or certified rehabilitation specialists must review each client’s treatment plan and abuse prevention plan; each weekly review must be documented.
- Substance use disorder (SUD) assessment: for clients with a current SUD diagnosis or a screen indicating possible SUD, complete a written SUD assessment within 30 days, covering relapse history, relationship effects, financial/health/housing/unemployment problems, legal issues, violence/victimization, suicidality, medication adherence, and treatment noncompliance.
- Ongoing planning and review: weekly team reviews and documentation of client-specific case reviews.
Section 2 — Behavioral Health Fund and Room and Board Eligibility
- Eligibility for behavioral health fund services: room and board costs can be paid from the behavioral health fund for certain individuals not enrolled in medical assistance, with funds kept in a separate account.
- Access for dependents and SUD treatment: dependents who need SUD or chemical dependency treatment can be assisted; facilities may allow dependents to stay with the client during treatment; counties may cover related out-of-home placement costs.
- Room and board for MA/MinnesotaCare enrollees: MA or MinnesotaCare enrollees are eligible for room and board services when provided through intensive residential treatment or residential crisis services.
- Income and third-party payments: individuals who are MFIP, MA, GA, GAMC eligible, or who meet income guidelines and have a third-party payer that pays less than 100% of costs can access the behavioral health fund for SUD treatment.
- Disenrollment and continued eligibility: if a client is disenrolled from a prepaid health plan during treatment, they can continue to receive behavioral health fund services through the end of the treatment episode if they remain eligible.
- County responsibilities: counties may be responsible for payment to regional treatment centers if the client is ineligible for the behavioral health fund.
- Eligibility period and appeals: eligible for one 60-day period per year for room and board; requests for additional eligibility possible; denial can be appealed through a state agency hearing.
- Regional treatment centers: the county is responsible for payment if the client is ineligible for the behavioral health fund.
- Interaction with other programs: persons enrolled in MinnesotaCare or MA remain eligible for room and board when provided through IRTS and residential crisis services.
- Interaction with other coverage: if third-party payment covers part of the cost, the client may still be eligible for fund support if the third party pays less than 100% of costs.
Section 3 — Standards for Intensive Nonresidential Rehabilitative Providers
- Service standards: intensive nonresidential rehabilitative services must meet specified standards under the bill and the broader 245I framework.
- Age-focused treatment teams: teams must have specialized training for the age group served; youth teams serve either ages 8–15 or ages 14–20 (depending on program design).
- Core treatment team: must include at least four full-time equivalent direct care staff, including:
- A team leader (mental health professional) for supervision and direction
- An advanced practice registered nurse with psychiatric certification or a board-certified child/adolescent psychiatrist who can prescribe medications
- A mental health certified peer specialist who is a former child mental health consumer
- A cooccurring disorder (COD) specialist
- Additional team members: may include other mental health professionals, vocational and educational specialists, a school-based mental health provider, clinical trainees, case management, housing access specialists, family peer specialists, registered nurses, and other clinician-type roles.
- Ad hoc consultants: teams may include non-employees who consult on specific clients and are paid at standard rates; these members must follow the team’s clinical direction for the placement.
- Treatment supervision and meetings: the supervision physician or clinician must be an active team member; the team must meet at least weekly to discuss progress, with documentation of client-specific case reviews and planning.
- Staffing capacity: the team’s staff-to-client ratio must not exceed 10:1; the team must serve no more than 80 clients at a time; if demand exceeds capacity, a new team must be established rather than expanding beyond the limit.
- Access to nonclinical staff: nonclinical staff must have prompt in-person or phone access to mental health professionals and the ability to respond to emergencies quickly.
- Youth ACT evaluation: providers must participate in the evaluation of Youth ACT (assertive community treatment) models as conducted by the commissioner, including data collection and reporting of performance measures.
- Regional scope: regional treatment teams may serve multiple counties.
Notable Changes to Law and Practice
- Expanded payment and coverage rules for room and board under behavioral health fund, especially for MA/MinnesotaCare enrollees and various eligibility scenarios.
- Stronger, more detailed requirements for admission-to-treatment planning, ongoing plan updates, and weekly plan reviews for residential services.
- Clearer and more robust standards for nonresidential services, including team composition, supervision, client load caps, and data reporting.
- Emphasis on transition planning to prepare clients for moving to a different setting and on coordinating referrals and follow-up resources.
Relevant Terms - Intensive residential treatment services (IRTS) - Residential crisis services - Behavioral health fund - Room and board services - Initial treatment plan - Level of care assessment - Individual abuse prevention plan - Diagnostic assessment - Substance use disorder (SUD) assessment - Treatment plan review - Treatment supervisor - Cooccurring disorder (COD) specialist - Youth ACT - Regional treatment center - MinnesotaCare - Medical assistance (MA) - MFIP - GA / GAMC - Third-party payment - Family peer specialist - Advanced practice registered nurse (APRN) with psychiatry credentials - Certified peer specialist - Case management - Functional assessment - Health and safety, crisis planning - Transition planning / discharge planning
Bill text versions
- Introduction PDF PDF file
Past committee meetings
- Human Services Finance and Policy on: March 04, 2026 08:15
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 19, 2026 | House | Action | Introduction and first reading, referred to | Human Services Finance and Policy | |
| March 05, 2026 | House | Action | Author added |
Citations
[
{
"analysis": {
"added": [
"Requires a defined treatment-team structure for intensive nonresidential rehabilitative services, including a core team with specified roles and minimum staffing.",
"Specifies core team composition: at least four full-time equivalent direct care staff; a mental health professional as team leader; an ARNP with psychiatric/mental health certification or a board-certified child and adolescent psychiatrist; a mental health certified peer specialist; and a cooccurring disorder specialist.",
"Allows additional non-core team members (e.g., additional mental health professionals, vocational or educational specialists, etc.) and ad hoc consultants paid by the provider.",
"Establishes staffing ratio limits (no more than 10 clients per one FTE treatment team position) and a cap of 80 clients per team.",
"Requires weekly team meetings and documentation of client-specific case reviews; ensures prompt access to nonclinical staff for emergent needs; mandates data collection and performance measures as part of ACT Youth model evaluation."
],
"removed": [],
"summary": "Amends 256B.0947, Subd. 5 to revise standards for intensive nonresidential rehabilitative providers.",
"modified": [
"Overall modification to Subd. 5 to implement enhanced team structure, staffing, and oversight for intensive nonresidential services."
]
},
"citation": "256B.0947",
"subdivision": "5"
},
{
"analysis": {
"added": [
"Within 12 hours of admission: evaluate and document immediate needs (health and safety, crisis needs, family supports, housing, legal issues).",
"Within 24 hours: complete an initial treatment plan based on referral information and needs assessment; ensure client involvement and supervisor approval.",
"Requires an individual abuse prevention plan as part of the initial treatment plan (per 245A.65, subd. 2, para. b).",
"Within five days of admission and again within 60 days: complete a level of care assessment; document medical necessity for continued intensive residential treatment; if not medically necessary, document rationale.",
"Within ten days of admission: complete or review and update the standard diagnostic assessment; within ten days: complete the individual treatment plan (and update at 40 and 70 days); focus on preparing for transition to another setting.",
"In addition to required elements of the individual treatment plan, identify referrals/resources and the staff responsible for following up; document reasons if referrals are not made.",
"Within 30 days of admission: complete a functional assessment; update within 60 days to reflect changes."
],
"removed": [],
"summary": "Amends Intensive Residential Treatment Services assessment and planning under 245I.23, Subd. 7.",
"modified": [
"Substantial rewrite of Subd. 7 to specify detailed timelines and elements for assessments, plans, and transition planning."
]
},
"citation": "245I.23",
"subdivision": "7"
},
{
"analysis": {
"added": [
"Allows CFR Title 25 Part 20-eligible individuals meeting 256B.056, subd. 4 income standards who are not enrolled in Medical Assistance to receive behavioral health fund services.",
"Creates a separate state account for funds appropriated under this paragraph.",
"Expands dependent-children eligibility for substance use disorder treatment via assessments or related case plans, with county payments for out-of-home costs when applicable.",
"Extends room-and-board eligibility for MinnesotaCare/Medical Assistance enrollees under 254B.0505, subd. 3(1) clause 9, and coordinates with related provisions."
],
"removed": [],
"summary": "Amends 254B.04, Subd. 1a to redefine client eligibility for behavioral health fund services.",
"modified": [
"Expands BH fund eligibility and room-and-board provisions; clarifies eligibility when third-party payments apply."
]
},
"citation": "254B.04",
"subdivision": "1a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References MFIP and other eligibility pathways in the context of behavioral health funding; cross-references to 260E.20.",
"modified": [
"Incorporates cross-references to eligibility and funding frameworks connected to 260E.20 within BH fund provisions."
]
},
"citation": "260E.20",
"subdivision": "1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Part of the level-of-care and treatment planning framework; amendment context for residential services.",
"modified": [
"Updates or clarifies level-of-care assessment requirements within 260C.201, Subd. 6."
]
},
"citation": "260C.201",
"subdivision": "6"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as part of treatment planning standards for substance use treatment services.",
"modified": [
"Incorporates 260C.212 into the treatment planning and service eligibility framework."
]
},
"citation": "260C.212",
"subdivision": ""
},
{
"analysis": {
"added": [
"County payment responsibility to regional treatment centers when BH fund cannot cover the costs."
],
"removed": [],
"summary": "Allocates payment responsibility when a county commits a client to a regional treatment center and the BH fund is not applicable.",
"modified": [
"Clarifies financial responsibility in regional treatment center placements outside BH fund coverage."
]
},
"citation": "254B.0501",
"subdivision": "3"
},
{
"analysis": {
"added": [
"Links BH fund eligibility to 256B.056, Subd. 4 income standards."
],
"removed": [],
"summary": "References income standards and entitlement-related eligibility for behavioral health fund services.",
"modified": [
"Aligns BH fund eligibility with income standards in 256B.056."
]
},
"citation": "256B.056",
"subdivision": "4"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites 256B.0632 in context of room and board services for MA/MnCare under intensive residential and residential crisis services.",
"modified": [
"Cross-references 256B.0632 regarding room-and-board eligibility for intensive residential services."
]
},
"citation": "256B.0632",
"subdivision": ""
},
{
"analysis": {
"added": [
"Requires weekly reviews of treatment plans and abuse prevention plans; documentation in the client file."
],
"removed": [],
"summary": "Addresses weekly reviews and documentation requirements for treatment plans and abuse prevention plans under 245I.04.",
"modified": [
"Specifies weekly review and documentation cadence under 245I.04, Subd. 10."
]
},
"citation": "245I.04",
"subdivision": "10"
},
{
"analysis": {
"added": [
"Requires updates to the initial treatment plan at defined intervals (e.g., within 10 days; within 40 days; within 70 days)."
],
"removed": [],
"summary": "Covers timelines for updating the initial treatment plan and related care planning.",
"modified": [
"Adjusts timelines for updating treatment plans under 245I.04, Subd. 6."
]
},
"citation": "245I.04",
"subdivision": "6"
},
{
"analysis": {
"added": [
"Mandates integration of referrals/resources and responsible staff in the treatment plan; requires documentation if referrals are not made."
],
"removed": [],
"summary": "Requires inclusion of referrals/resources and follow-up staff in the treatment plan; documents rationale if referrals are not made.",
"modified": [
"Adds components to the initial treatment plan under 245I.04, Subd. 4."
]
},
"citation": "245I.04",
"subdivision": "4"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References 245I.10 Subd. 8 in the context of required elements for the treatment plan.",
"modified": [
"Affects alignment with 245I.10 Subd. 8 requirements for treatment planning."
]
},
"citation": "245I.10",
"subdivision": "8"
},
{
"analysis": {
"added": [
"Incorporates abuse prevention planning as part of the initial treatment plan per 245A.65, Subd. 2, para. b."
],
"removed": [],
"summary": "Cites 245A.65, Subd. 2, paragraph b for the abuse prevention plan component.",
"modified": [
"Explicitly requires an abuse prevention plan under treatment planning."
]
},
"citation": "245A.65",
"subdivision": "2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites federal standards (CFR Title 25 Part 20) for eligibility related to behavioral health fund services.",
"modified": [
"Incorporates federal eligibility standards into state BH fund provisions."
]
},
"citation": "Code of Federal Regulations Title 25 Part 20",
"subdivision": ""
},
{
"analysis": {
"added": [
"Links BH fund treatment eligibility to MFIP determinations under chapter 142G."
],
"removed": [],
"summary": "References MFIP eligibility criteria and related funding under chapter 142G as part of behavioral health funding.",
"modified": [
"Aligns BH fund access with MFIP eligibility standards per chapter 142G."
]
},
"citation": "142G",
"subdivision": ""
}
]Progress through the legislative process
In Committee