SF4858 (Legislative Session 94 (2025-2026))
Various human services provisions modification
Related bill: HF4562
AI Generated Summary
Purpose
- To adjust Minnesota’s licensing moratorium on child foster care and certain residential settings, add specific exceptions, strengthen how capacity and need are determined, and require more information and oversight for license actions. The bill aims to better align licensing decisions with federal requirements (Family First Prevention Services Act), governing capacity in foster care and related settings, and to provide a data-driven framework for expanding or reducing licensed beds when appropriate. It also seeks to improve planning around transitions of residents to community settings and to ensure license status reflects the license holder’s primary residence.
Main Provisions
Licensing moratorium scope and primary residence rule
- The commissioner may not issue an initial license for child foster care settings (under certain Minnesota Rules) or for adult foster care (under others) if the location will not be the license holder’s primary residence for the full licensure period.
- If a setting loses its Family First Prevention Services Act certification or if the license holder changes the license holder’s primary residence away from the location, the license can be revoked.
Exceptions to the moratorium
- Exemption 1: Licenses for settings not the primary residence of the license holder, where at least 80% of residents are 55 years of age or older.
- Exemption 2: New licenses replacing existing licenses that were in place on specific past dates (May 15, 2009; December 31, 2013) and determined needed by the commissioner.
- Exemption 3: New licenses needed for the closure of nursing facilities, ICF/DDs, or for restructuring of state-operated services that reduce capacity, enabling movement to the community for those who no longer require state-operated care.
- Exemption 4: New licenses for hospital-level care.
- Exemption 5: New community residential setting licenses deemed necessary by the commissioner for people affected by the closure of small homes (five or six beds) previously licensed as supervised living facilities but not designated as ICFs. This exemption is available through June 30, 2025.
Determinations of need and capacity management
- The commissioner will determine the need for newly licensed foster care homes or community residential settings and must consider: (i) overall foster care capacity in the area, (ii) results of the local county board’s recommendations, and (iii) the availability of beds. The determination is final and not subject to appeal, and a change of ownership at the same address does not require a new determination of need.
- When an adult resident moves out of a foster home that is not the primary residence, counties must inform the DHS Licensing Division, and the department may reduce statewide licensed capacity for adult foster care settings.
- Settings that would otherwise face reduced capacity may be exempt if the resident’s primary diagnosis is mental illness and the license holder is certified under specific state requirements.
- A state-level resource need determination process (using data from 144A.351 and other sources) will guide where reduced capacity should be implemented. The commissioner must consult stakeholders and use various methods to align capacity with informed long-term decisions and funding constraints.
Application, licensure, and reporting requirements
- At initial licensure and reapplication, applicants and license holders must disclose whether the location is the license holder’s primary residence; if that changes, they must notify the commissioner. The license certificate will indicate whether the location is the primary residence.
- License holders providing waiver-funded services (e.g., HCBS waivers) must inform the licensing division if those services are provided at the licensed setting.
- The commissioner may adjust capacity to address identified needs, including approving new settings or delicensing existing ones, with delicensing handled through a specific process.
- Licensees must be notified in writing of any reduction in licensed beds, with a right to request reconsideration within 20 calendar days of receipt.
Children's residential treatment services
- The commissioner shall not issue an initial license for children's residential treatment services that CMS would categorize as an institution for mental diseases (IMD), with private-pay-only programs exempt. The commissioner retains authority to manage statewide capacity related to the moratorium for these services and may issue an initial license if it would not increase the statewide capacity subject to the moratorium.
Repeals and statutory updates
- The bill includes amendments to several Minnesota Statutes and to sections in the 2025 Supplement, adding subdivisions and reorganizing certain license-related provisions. It also repeals certain 2024 sections related to licensure and capacity in specified contexts (subject to standard legislative procedures).
How this bill would change existing law
- Tightens the licensing moratorium by tying it to the license holder’s primary residence and by adding explicit exceptions, expanding the range of scenarios in which new licenses can be approved.
- Strengthens the linkage between licensure decisions and the Family First Act, capacity planning, and local county input.
- Introduces a formal, state-level process to determine where capacity should be increased or decreased, with a data-driven approach using 144A.351 and related data.
- Creates clearer notice and reconsideration rights for licensees facing bed reductions.
- Adds new reporting requirements for licensees involved in waiver-funded services and clarifies licensure expectations for settings not aligned with the primary residence rule.
- Addresses specific settings and care transitions, including nursing facility closures, hospital-level care needs, and small-group supervised living facility closures.
Implementation and Oversight
- Finality of certain capacity determinations: The commissioner’s determinations of need are final and not appealable.
- Notice and reconsideration: Licensee notices of bed reductions must include guidance for reconsideration, with a 20-day window to file.
- Data-driven oversight: The state will use capacity data, local recommendations, and annual assessments to guide licensing and transitions for long-term services within budget constraints.
Relevant Terms - licensing moratorium - child foster care - adult foster care - primary residence - Family First Prevention Services Act - foster care residence - community residential setting - resource need determination - capacity - delicense / delicensing - notice of reduction - reconsideration - hospital-level care - ICF/DD (intermediate care facility for individuals with developmental disabilities) - nursing facility closures - CMS IMD (institution for mental diseases) - waiver-funded services - Home and Community-Based Services waiver (HCBS) - 144A.351 data - county board - annual assessment and service plan review
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 25, 2026 | Senate | Action | Introduction and first reading | ||
| March 25, 2026 | Senate | Action | Referred to | Human Services |
Citations
[
{
"analysis": {
"added": [
"Licensing moratorium includes explicit FFPSA-related certifications and conditions for certain settings.",
"Clarifications to when licenses may be revoked or adjusted if primary residence changes."
],
"removed": [],
"summary": "Modifies the child foster care licensing moratorium to require settings meet Family First Prevention Services Act (FFPSA) requirements and related residency/licensure conditions.",
"modified": [
"Ties license eligibility and exceptions to FFPSA compliance and formal determinations regarding residency and certification."
]
},
"citation": "245A.03 subdivision 7",
"subdivision": "subdivision 7"
},
{
"analysis": {
"added": [
"Federal FFPSA framework referenced as a basis for licensing and service requirements."
],
"removed": [],
"summary": "References to the Family First Prevention Services Act within the bill.",
"modified": [
"Brings FFPSA into the scope of Minnesota statute context (without altering the text of FFPSA itself)."
]
},
"citation": "245A.25 subdivision 1",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [
"Provisions describing or aligning with FFPSA certification rescission conditions."
],
"removed": [],
"summary": "FFPSA certification rescission provisions referenced in relation to licensing actions.",
"modified": [
"Incorporates FFPSA-related certification status into licensure considerations."
]
},
"citation": "245A.25 subdivision 9",
"subdivision": "subdivision 9"
},
{
"analysis": {
"added": [
"Authority to revoke licenses if the license holder changes the primary residence."
],
"removed": [],
"summary": "License revocation processes tied to residency changes under the moratorium framework.",
"modified": [
"Links license revocation actions to changes in the license holder’s primary residence."
]
},
"citation": "245A.07",
"subdivision": "subdivision 7"
},
{
"analysis": {
"added": [
"Requires state data and statewide information to inform capacity decisions."
],
"removed": [],
"summary": "Data usage guidance for capacity determinations and related planning.",
"modified": [
"Encourages use of informed decisions and stakeholder input in capacity planning."
]
},
"citation": "144A.351",
"subdivision": ""
},
{
"analysis": {
"added": [
"Acknowledges updated provisions in 245D.091 related to child and family services."
],
"removed": [],
"summary": "References Minnesota Statutes governing targeted or residential child and related services, with updates via the 2025 Supplement.",
"modified": [
"Incorporates updated cross-references to 245D.091 in the broader child welfare framework."
]
},
"citation": "245D.091 subdivisions 2, 3",
"subdivision": "subdivision 2, subdivision 3"
},
{
"analysis": {
"added": [
"New subdivision related to capacity determination or licensure processes."
],
"removed": [],
"summary": "Amendment to 256B.0625 by adding a subdivision (capacity/ licensing-related change).",
"modified": [
"Expands licensure/capacity-related rules within 256B.0625."
]
},
"citation": "256B.0625",
"subdivision": ""
},
{
"analysis": {
"added": [
"New subdivision addressing specified licensure or service provisions."
],
"removed": [],
"summary": "Adds or updates subdivision 32 in 256B.0911.",
"modified": [
"Broadens or reframes eligibility/capacity standards under 256B.0911."
]
},
"citation": "256B.0911 subdivision 32",
"subdivision": "subdivision 32"
},
{
"analysis": {
"added": [
"New subdivisions or changes affecting capacity determinations and licensing needs."
],
"removed": [],
"summary": "Amends 256B.0924 by adding/substantively altering subdivisions related to licensure capacity and need determinations.",
"modified": [
"Integrates capacity management (including need/determination processes) with the moratorium framework."
]
},
"citation": "256B.0924 subdivisions 3, 5, 7, 6",
"subdivision": "subdivisions 3, 5, 7, 6"
},
{
"analysis": {
"added": [
"New subdivisions affecting program requirements or licensure criteria."
],
"removed": [],
"summary": "Amends 256B.0949 by adding subdivisions 2 and 16.",
"modified": [
"Expands or clarifies service or capacity-related provisions under 256B.0949."
]
},
"citation": "256B.0949 subdivisions 2, 16",
"subdivision": "subdivisions 2, 16"
},
{
"analysis": {
"added": [
"New provision affecting licensing or service parameters."
],
"removed": [],
"summary": "Adds subdivision 2a to 256B.4905.",
"modified": [
"Expands regulatory framework within 256B.4905."
]
},
"citation": "256B.4905 subdivision 2a",
"subdivision": "subdivision 2a"
},
{
"analysis": {
"added": [
"New provision impacting licensure or service delivery."
],
"removed": [],
"summary": "Amends 256B.5012 by adding subdivision 21.",
"modified": [
"Expands or clarifies duties or requirements under licensure provisions."
]
},
"citation": "256B.5012 subdivision 21",
"subdivision": "subdivision 21"
},
{
"analysis": {
"added": [
"New provision affecting oversight, compliance, or rate/eligibility aspects."
],
"removed": [],
"summary": "Adds subdivision 8 to 256B.851.",
"modified": [
"Extends regulatory scope or reporting requirements within 256B.851."
]
},
"citation": "256B.851 subdivision 8",
"subdivision": "subdivision 8"
},
{
"analysis": {
"added": [
"New provision related to waivers or community-based supports under 256S."
],
"removed": [],
"summary": "Amends 256S.21 by adding subdivision 3.",
"modified": [
"Updates to self-directed or home-and-community-based services framework."
]
},
"citation": "256S.21 subdivision 3",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [
"New provisions affecting capacity, licensing, or service delivery in the 626 framework."
],
"removed": [],
"summary": "Adds subdivisions 9, 9a, and 12b to 626.557.",
"modified": [
"Expands regulatory or policy scope under the 626 statutes."
]
},
"citation": "626.557 subdivisions 9, 9a, 12b",
"subdivision": "subdivisions 9, 9a, 12b"
},
{
"analysis": {
"added": [
"New provisions relating to licensing capacity or service delivery under 626.5572."
],
"removed": [],
"summary": "Adds subdivisions 2, 9, and 17 to 626.5572.",
"modified": [
"Broadens statutory framework for related care settings."
]
},
"citation": "626.5572 subdivisions 2, 9, 17",
"subdivision": "subdivisions 2, 9, 17"
},
{
"analysis": {
"added": [
"Additional capacity/licensure-related rule."
],
"removed": [],
"summary": "Adds subdivision 13 to 626.5572.",
"modified": [
"Further expands the 626.5572 regulatory scheme."
]
},
"citation": "626.5572 subdivision 13",
"subdivision": "subdivision 13"
},
{
"analysis": {
"added": [
"New capacity/ licensure-related provision within the 626.557 framework."
],
"removed": [],
"summary": "Amends 626.557 by adding subdivision 10.1.17.",
"modified": [
"Extends regulatory scope of the chapter and related processes."
]
},
"citation": "626.557 subdivision 10.1.17",
"subdivision": "subdivision 10.1.17"
},
{
"analysis": {
"added": [
"Incorporates the capacity determination/delicensing framework in 256B.493."
],
"removed": [],
"summary": "References section 256B.493 for the capacity/delicense process referenced in the bill.",
"modified": [
"Links to shared process and stakeholder engagement defined in 144A.351 context."
]
},
"citation": "256B.493",
"subdivision": ""
},
{
"analysis": {
"added": [
"New provision related to facility licensing standards or related protections."
],
"removed": [],
"summary": "Adds subdivision 24 to 256B.49.",
"modified": [
"Expands or clarifies regulatory requirements under 256B.49."
]
},
"citation": "256B.49 subdivision 24",
"subdivision": "subdivision 24"
},
{
"analysis": {
"added": [
"New provision affecting maltreatment reporting or protective services processes."
],
"removed": [],
"summary": "Adds subdivision 10a to 256B.4914.",
"modified": [
"Expands safeguards or oversight within maltreatment processes."
]
},
"citation": "256B.4914 subdivision 10a",
"subdivision": "subdivision 10a"
},
{
"analysis": {
"added": [
"Additional licensure or compliance requirement."
],
"removed": [],
"summary": "Amends 256B.5012 by adding subdivision 21 (duplicate reference avoidance noted in changes).",
"modified": [
"Updates to licensure standards and related processes."
]
},
"citation": "256B.5012 subdivision 21",
"subdivision": "subdivision 21"
},
{
"analysis": {
"added": [],
"removed": [
"Repeal of listed 256B.5012 subdivisions 4-16."
],
"summary": "Repeals Minnesota Statutes 2024 sections 256B.5012 subdivisions 4-16 listed here.",
"modified": [
"Significant redirection of licensure/operational provisions previously covered by these subdivisions."
]
},
"citation": "256B.5012 subdivisions 4, 5, 6, 7, 8, 9, 10, 11, 12, 14, 15, 16",
"subdivision": "subdivisions 4,5,6,7,8,9,10,11,12,14,15,16"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Duplicate reference to FFPSA within 245A.25; included here for completeness.",
"modified": [
"FFPSA reference remains centralized in 245A.25 context."
]
},
"citation": "245A.25 subdivision 1",
"subdivision": "subdivision 1"
}
]Progress through the legislative process
In Committee