Committee adopts author amendment to extend engagement services pilot; Otter Tail providers seek supplemental rate for supportive housing beds

The Senate Human Services Committee adopted an author’s amendment to Senate File 3106 on a voice vote April 7 and heard testimony from Otter Tail County providers about two linked proposals: an extension of a one‑time engagement services pilot appropriation and a supplemental rate mechanism to support up to 24 supportive housing beds.

Senator Zachary Rasmussen (sponsor) described the engagement services pilot as a targeted grant established with a 2023 one‑time appropriation after outreach from a constituent whose family experienced a suicide. The pilot is intended to test proactive outreach to individuals who do not meet civil commitment criteria but are not engaging with voluntary services. Rasmussen said the Department of Human Services only recently issued a request for proposals and needs more time to allow grantees to spend the funds and demonstrate proof of concept.

Under the plan presented to the committee, Otter Tail County would use year‑one funding to automatically refer individuals who have been evaluated for civil commitment but do not meet the criteria to the engagement services pilot. County staff would proactively reach out to engage those individuals in voluntary treatment and supports, with the goal of avoiding civil commitment. In year two, referrals would expand to include law enforcement, crisis teams, health providers and families.

"This whole construct came about because I had a very brave constituent who lost her husband to suicide," Rasmussen said. "…This was part of the one‑time appropriations from 2023, and the Department of Human Services has been working on this, but they just got the request for proposals out just a couple weeks ago. Because of that lag, it would force the grantees to spend this money within a year, and they would like more time so that they can show the proof of concept."

The committee also heard testimony on a supplemental rate provision in the amendment that would allow Otter Tail County to negotiate a supplemental rate for up to 24 beds providing supportive housing services to people recovering from substance use disorder, mental illness, or housing instability. Tammy Anderson testified for two Fergus Falls recovery residences — the Matthew House (men) and Barbara’s House (women) — describing residents’ high levels of need and recovery supports the homes provide. Anderson said 80 percent of residents had criminal justice involvement, 99 percent had substance use disorder or mental illness, and 75 percent had lost a loved one to overdose or suicide. She urged support for the amendment as a way to stabilize providers and expand capacity.

Hannah Frederick, a licensed graduate social worker and co‑director of behavioral health and housing for Perm180 (a program of Productive Alternatives), described Perm180 as an experimental model offering temporary housing and employment to people with high barriers. Frederick said the program has served more than 120 individuals from Otter Tail and 20 other counties, and requested that the amendment include 20 banked beds for Otter Tail County so Perm180 could participate in the supplemental rate mechanism.

Senator Rasmussen moved the A1 amendment as an author’s amendment and the chair asked for the ayes; the amendment was adopted by voice vote. The committee laid the bill over for further work and discussion and indicated the A1 language would be refined during the next meeting and potential markup on Wednesday.

Disposition: A1 (author’s amendment) adopted by voice vote; bill laid over for possible inclusion and the A1 will be part of upcoming markup.