SF4604 (Legislative Session 94 (2025-2026))
Compliance training requirement for high-risk medical assistance providers
AI Generated Summary
Purpose
- Strengthen oversight of providers who offer medical and related services by adding mandatory compliance training, stricter enrollment and licensing procedures, and enhanced enforcement tools. The bill aims to ensure high-risk providers meet program rules, protect vulnerable populations, and improve accountability in how licenses are granted and renewed.
Key Provisions
Expanded licensure requirements and due diligence
- Applicants for licensure must be thoroughly evaluated, with the commissioner acting within 90 working days after a complete file is received.
- Applications must identify all controlling individuals and designate an authorized agent; service on the authorized agent counts for all controlling individuals.
- Applicants must disclose if they intend to receive public funding and may face monitoring or penalties if they do not comply with enrollment or licensing requirements.
- Applications must include detailed information such as tax IDs, NPI/UMPI numbers, and, for organizations, governance documents and a full list of controlling individuals.
- A program must have policies prohibiting abuse of prescription medications or impairment by chemicals, and must have a grievance procedure accessible to those served.
Provider licensing hub and communication limits
- The provider licensing and reporting hub will be used during licensing processes, and the commissioner may limit communications to the authorized agent or identified controlling individuals.
Competence assessment and background checks
- The commissioner may require applicants to demonstrate competence via a written examination (format to be determined by the commissioner).
- Background studies will be required for controlling individuals, and there are specific disclosure requirements regarding background study status.
High-risk provider enrollment training
- Agencies applying to enroll as high-risk medical assistance providers must require all owners involved in day-to-day management and all managerial/supervisory employees to complete a mandatory compliance training before enrollment and before revalidation, with repeated training every three years.
- New owners and new managerial staff must complete training within 30 days of taking on their roles.
- Training topics include: program billing/documentation, enrollment requirements, provider program integrity (fraud prevention/detection/penalties), fair labor standards, workplace safety, and changes in service requirements. Format/content will be determined by the commissioner.
Surety bonds for housing stabilization and recuperative care providers
- Providers must furnish a surety bond for each business location as a condition of enrollment/reenrollment.
- Bond amounts: $50,000 if annual MA revenue is $300,000 or less; $100,000 if MA revenue exceeds $300,000. Bonds are renewed annually and can be used to recover costs and fees.
- Actions to recover on bonds must be brought within six years of the final agency decision.
- Providers must ensure controlling individuals and employees complete annual vulnerable adult training and the required compliance training, and they must comply with habitability inspection requirements where applicable.
Housing stabilization services and recuperative care reforms
- Provider qualifications for housing stabilization services and recuperative care require pre-enrollment risk assessments, compliance with background study rules, and documentation of background study requests/results.
- Providers must demonstrate housing stabilization service compliance and maintain surety bonds; the same annual training and habitability inspection requirements apply.
Mandatory compliance training for currently enrolled high-risk providers
- Providers enrolled before January 1, 2027 must complete initial compliance training by January 1, 2028.
- Some providers (e.g., PCA and CFSS agencies with prior approved training) are exempt from the initial training deadline but must repeat training before revalidation.
Licensing timeline and renewals
- Licenses may be issued for up to two years if certain observations or conditions exist.
- A license will include the holder’s name, address, license type, service, capacity, expiration date, and any special conditions.
- The commissioner may suspend, revoke, or impose contingencies on licenses, including immediate removal orders for disqualified individuals.
- Licenses generally expire at 12:01 a.m. on the day after the stated expiration date; programs must be reissued a license to continue operating.
Denial, notice, and appeal
- The commissioner can deny applications for various reasons (e.g., incomplete applications, noncompliance, disqualifications, or history of violations).
- Denial notices must include reasons, and applicants have a right to a contested case hearing and to appeal within specified timeframes.
Coordination and jurisdiction
- The commissioner may coordinate data sharing with the department of Children, Youth, and Families, and respect tribal licensing jurisdiction when applicable.
Repeals and appendices
- Repeals are enacted for certain older housing stabilization and related enrollment sections, replacing them with the new enrollment, bond, and training requirements.
- An appendix lists the repealed statutes.
Significant Changes to Existing Law
- Introduction of mandatory, board-approved compliance training for all high-risk providers and, for new owners/managers, within strict timeframes.
- Addition of a provider licensing hub as a central component of enrollment and licensing processes.
- Requirement of surety bonds for housing stabilization and recuperative care providers, with specific bond amounts based on annual MA revenue.
- Expanded background study and risk assessment requirements for controlling individuals and provider ownership.
- Clear, structured process for license denial, renewal, probation, and potential revocation, including immediate removal provisions when necessary.
- Repeal of some older housing stabilization enrollment provisions and incorporation of them into the new framework.
Implementation & Dates
- Effective enrollment/compliance requirements begin January 1, 2027.
- Initial mandatory compliance training deadlines for currently enrolled high-risk providers: January 1, 2028 (with certain exceptions for providers who previously completed related training).
- Ongoing training required every three years for owners/managers and supervisors.
- New owners/managers must complete training within 30 days of taking on their role.
- Repeals take effect as part of the overall update to housing stabilization and recuperative care sections.
Affected Entities
- Agencies applying for or currently enrolled as high-risk medical assistance providers.
- Housing stabilization services providers.
- Recuperative care providers.
- Administrators, owners, managing directors, and supervisory staff within affected agencies.
- Tribal licensing authorities (in relation to jurisdiction).
- The provider licensing and reporting hub users and administrators.
Relevant Terms - high-risk providers - compliance training - medical assistance provider - provider enrollment hub - background study - preenrollment risk assessment - authorized agent - controlling individuals - surety bond - housing stabilization services - recuperative care services - vulnerable adult training - habitability inspection - license renewal and revival - license denial and appeal - preauthorization/documentation requirements - NPI and UMPI numbers - DBA (doing business as) names - preenrollment risk assessment - provider program integrity - enrollment requirements - bonds and recovery of costs - licensing timeline and temporary licenses - tribal licensing jurisdiction
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 18, 2026 | Senate | Action | Introduction and first reading | ||
| March 18, 2026 | Senate | Action | Referred to | Health and Human Services |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes section 245A.03 as the licensure framework referenced throughout the act.",
"modified": []
},
"citation": "245A.03",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill amends Minnesota Statutes 2025 Supplement section 245A.04, subdivision 1, to revise licensure application requirements and related processes.",
"modified": [
"Alters licensure application requirements including submission, completeness standards, and timelines; expands background check and background study considerations; requires use of the provider licensing and reporting hub."
]
},
"citation": "245A.04",
"subdivision": "subd.1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill amends Minnesota Statutes 2025 Supplement section 245A.04, subdivision 7, detailing grant of license provisions.",
"modified": [
"Updates grant/terms of license language, including license length and conditions."
]
},
"citation": "245A.04",
"subdivision": "subd.7"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill amends Minnesota Statutes 2025 Supplement section 245A.05 (DENIAL OF APPLICATION).",
"modified": []
},
"citation": "245A.05",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 2025 Supplement section 245A.08 (hearings).",
"modified": []
},
"citation": "245A.08",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 2025 Supplement section 245A.10 (additional licensure requirements).",
"modified": []
},
"citation": "245A.10",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 2025 Supplement section 245A.043 (licensure procedures related to ownership transfers).",
"modified": []
},
"citation": "245A.043",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 2025 Supplement section 245A.02, subdivision 5a (controlling individuals definition and related background study processes).",
"modified": []
},
"citation": "245A.02",
"subdivision": "subd.5a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 2025 Supplement section 245C.02, subdivision 11 (background study and related communications).",
"modified": []
},
"citation": "245C.02",
"subdivision": "subd.11"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 2025 Supplement section 245C.03, subdivision 1 (background study requirements).",
"modified": []
},
"citation": "245C.03",
"subdivision": "subd.1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 245C.17 (removal from direct contact when disqualified).",
"modified": []
},
"citation": "245C.17",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 245C.22 (background study disqualifications and variances).",
"modified": []
},
"citation": "245C.22",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 256B.04, subdivision 21 (high-risk providers).",
"modified": []
},
"citation": "256B.04",
"subdivision": "subd.21"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 256B.051, subdivision 6 (agency qualifications and duties).",
"modified": []
},
"citation": "256B.051",
"subdivision": "subd.6"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 256B.051, subdivision 6b (requirements related to housing stabilization services).",
"modified": []
},
"citation": "256B.051",
"subdivision": "subd.6b"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 256B.0701, subdivision 9 (provider qualifications and duties).",
"modified": []
},
"citation": "256B.0701",
"subdivision": "subd.9"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 256B.0701, subdivision 10 (preenrollment risk assessment).",
"modified": []
},
"citation": "256B.0701",
"subdivision": "subd.10"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 256B.0701, subdivision 11 (licensing and enrollment actions).",
"modified": []
},
"citation": "256B.0701",
"subdivision": "subd.11"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 256B.044, subdivision 2 (training/enrollment requirements).",
"modified": []
},
"citation": "256B.044",
"subdivision": "subd.2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 256B.044, subdivision 6b (vulnerability training requirements).",
"modified": []
},
"citation": "256B.044",
"subdivision": "subd.6b"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 256B.044, subdivision 11 (compliance training).",
"modified": []
},
"citation": "256B.044",
"subdivision": "subd.11"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 256B.044, subdivision 13 (habitability inspection).",
"modified": []
},
"citation": "256B.044",
"subdivision": "subd.13"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 256B.064 (debt/appeal processes under agency decisions).",
"modified": []
},
"citation": "256B.064",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 256B.0659, subdivision 21 (prior training for PCA/CFSS staff).",
"modified": []
},
"citation": "256B.0659",
"subdivision": "subd.21"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 256B.85, subdivision 12 (training provisions for certain providers).",
"modified": []
},
"citation": "256B.85",
"subdivision": "subd.12"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes Chapter 142B (license/provision of services and revocation).",
"modified": []
},
"citation": "Chapter 142B",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes Chapter 142E (related to housing stabilization and provider requirements).",
"modified": []
},
"citation": "Chapter 142E",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes Chapter 14 (contested case hearings).",
"modified": []
},
"citation": "Chapter 14",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 245A.07 (sanctions).",
"modified": []
},
"citation": "245A.07",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 245A.06 (sanctions/licensing processes) in related provisions.",
"modified": []
},
"citation": "245A.06",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill makes multiple cross-references to 245A.04 across subdivisions; the primary amendments relate to licensure application and processing.",
"modified": []
},
"citation": "245A.04",
"subdivision": ""
}
]Progress through the legislative process
In Committee