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Bill Summary · HF 3379

Summary of HF 3379 (2025-2026) – Minnesota

Note: This summary focuses on the substantive provisions and potential impacts of the bill as introduced and amended through the first unofficial engrossment.

1) Purpose and overall intent

HF 3379 repeals housing stabilization services (HSS) and redesigns housing stability policy within Minnesota’s health and human services framework. The bill repeals existing housing stabilization authorities and related sections, repeals several subdivisions of 256B.051 (Housing Stabilization Services) and related 2024/2025 statute sections, and directs a redesign process to establish a new statewide housing services framework. It also shifts certain responsibilities, creates new reporting and oversight requirements, and expands or adjusts related provider enrollment, background checks, surety bonding, and service delivery requirements. A concurrent objective is to create a pathway for a future housing services benefit and to study and report back with recommendations by September 15, 2027.

2) Key provisions and changes

  • Repeal and redesign of Housing Stabilization Services

    • Repeals Minnesota Statutes 2024, §256B.051 subdivisions 1, 4, 7 and related 2025 supplement subdivisions (2, 3, 5, 6, 6a, 6b, 8, 9, 10) and related statutory enactments (and related special-session law).
    • Effectively eliminates the current housing stabilization services framework as it exists under §256B.051.

  • Background checks and provider enrollment

    • Maintains background studies for unlicensed HSS providers (and related waiver services) via NETStudy 2.0; background study requirements apply to individuals with direct contact with clients.
    • Providers must enroll and may be revalidated; additional provisions for high-risk or “moderate” providers align with broader MA provider enrollment oversight.
    • A new or revised cost recovery for background study processing fees: up to $44 per study (Sec. 3).

  • Provider bonding and compliance

    • Enrollees and providers must show proof of surety bond coverage at enrollment, reenrollment, and revalidation.
    • Bond amounts: $50,000 for entities with $300k or less MA revenue in the prior year; $100,000 for higher MA revenue.
    • Bonds are recoverable, with a six-year statute of limitations for recovery.

  • Medicaid enrollment and compliance controls

    • Enrollees may face suspension of billing for noncompliance and high-risk designation can trigger withholding of payment during initial enrollment (90 days).
    • Compliance officers required for certain provider types with home- or health-care licenses, to ensure MA compliance and timely reporting of overpayments.

  • Public notice and waiver/state plan amendments

    • Before submitting MA waivers or state plan amendments to federal authorities, the commissioner must publish the text and provide a 30-day public comment period; must post federal decisions and any modifications required for approval.

  • Housing Services Redesign (HF 3379, new Sec. 11)

    • Direction to the commissioner to develop recommendations for a new housing stability program to help people experiencing or at risk of homelessness to obtain and maintain housing.
    • Emphasis on tribal and urban Indian organization prioritization; use of evidence-based practices; alignment to prevent duplication; outcome measures; anti-fraud safeguards; and necessary statutory and appropriation changes.
    • Requires collaboration with Legislature, state agencies, Tribal Nations, and community partners.
    • Legislative report due by September 15, 2027, detailing final recommendations for a Tribal-government-specific housing services benefit and a statewide housing services benefit.
    • Effective date for this redesign directive: July 1, 2026.

  • Nursing homes and alcohol service (Sec. 10)

    • Adds a provision allowing certain nursing homes, boarding care homes, and assisted living facilities to serve intoxicating liquor without a separate license, under specific conditions, including notice, license alignment with health department requirements, and restrictions on sale/compensation.

  • Data privacy and Optum

    • Sec. 12 prohibits Optum from disseminating private health data received under DHS contract, per Executive Order 25-10.

  • Repeals and appendices

    • Repeals key portions of 256B.051 (Housing Stabilization Services) and related laws; Appendix provides historical context of the repealed statute.

  • New Section: 340A.4015

    • Establishes a separate framework for nursing homes, boarding care, and assisted living facilities to permit serving intoxicating liquor under strict conditions and enforcement mechanisms.

  • Sec. 7: Housing Access Grants

    • Establishes a new grant framework for housing access, with potential eligibility to support housing access for individuals with disabilities, and outlines allowable uses (assessment, housing search support, budgeting, furnishings, etc.).

3) Who and what is affected

  • Individuals experiencing or at risk of homelessness or housing instability could be affected via a redesign of housing services and the eventual establishment of new benefits or programs.
  • Housing stabilization providers, including agencies delivering housing transition, housing tenancy sustaining services, housing consultation, and housing transition costs, are subject to new enrollment, risk assessment, compliance, bonding, and documentation requirements or potential phase-out.
  • Tribal governments and urban Indian organizations are prioritized in the redesign recommendations.
  • Minnesota Health Care Programs (MA/Medicaid) providers, including DMEPOS suppliers and high-risk providers, face updated enrollment, surety bond, and compliance requirements.
  • Consumers of housing stabilization services could see changes in service limits, documentation requirements, and potential shifts in eligibility criteria as the redesign unfolds.
  • Optum and data privacy: data handling restrictions for private data under contract.

4) Procedural and timeline aspects

  • Effective dates:
    • Background checks, enrollment, and bonding provisions: day after final enactment.
    • Housing Services Redesign directive: July 1, 2026.
    • Pre-enrollment risk assessment and certain compliance training requirements: effective July 1, 2025 (with phased implementation for existing providers by 2026-2028).
    • Reporting: by September 15, 2027, the commissioner must submit a legislative report with final recommendations for the housing services framework.
  • Public notice and comment:
    • Before federal MA waiver/state plan amendments: 30-day public notice and comment; publication of federal decision notices with modifications required for approval.
  • Repeals:
    • Substantial repeals of §256B.051 and related sections, with timing to be effective upon final enactment.

If you’d like, I can provide a side-by-side comparison of current statute vs. HF 3379’s proposed changes, or a timeline visualization of key dates.

Compiled from official sources — confirm details with the bill’s official record.

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