SF 3168

3rd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to human services; amending health care services provisions;
establishing Grieving Parents Act; making changes to general assistance medical
care, medical assistance, and MinnesotaCare; modifying claims, liens, and
treatment of assets; establishing a statewide information exchange; modifying
regulation of certain home care service providers; modifying background study
requirements; modifying food stamp reporting requirements; clarifying coverage
of community health worker education services; authorizing the establishment
of the Minnesota State Industries at Minnesota sex offender program facilities;
providing circumstances, conditions, and procedure under which a person who
is sexually dangerous or has a sexual psychopathic personality is confined in a
correctional facility while being petitioned for civil commitment; providing
for petitions for a reduction in custody for persons committed as sexually
dangerous or a sexual psychopathic personality; requiring a working group
to develop standards and guidelines for the operation of the Minnesota sex
offender program; modifying public assistance provisions; modifying the MFIP
transitional standards; requiring reports; amending Minnesota Statutes 2006,
sections 13.851, by adding a subdivision; 125A.02, subdivision 1; 144A.45,
subdivision 1, by adding a subdivision; 150A.06, by adding a subdivision;
245C.24, subdivision 2; 246B.02; 253B.045, subdivisions 1, 2, by adding a
subdivision; 253B.18, subdivisions 4c, 5, 5a; 253B.185, subdivision 5, by adding
a subdivision; 253B.19, subdivisions 2, 3; 256.01, by adding a subdivision;
256B.055, subdivision 12; 256B.056, subdivisions 2, 4a, 11, by adding a
subdivision; 256B.057, subdivision 1; 256B.0571, subdivisions 6, 8, 9, 15, by
adding a subdivision; 256B.058; 256B.059, subdivisions 1, 1a; 256B.0594;
256B.0595, subdivisions 1, 2, 3, 4, by adding subdivisions; 256B.0625,
subdivisions 3c, 13g, 13h; 256B.075, subdivision 2; 256B.15, subdivision 4;
256B.69, subdivisions 3a, 6, 27; 256B.692, subdivision 7; 256J.24, subdivision
5; 256J.425, subdivision 1; 256J.521, subdivision 4; 256J.54, subdivisions
2, 5; 256J.545; 524.3-803; 626.5572, subdivision 21; Minnesota Statutes
2007 Supplement, sections 253B.185, subdivision 1b; 256.01, subdivision 2;
256B.055, subdivision 14; 256B.0625, subdivision 49; 256D.03, subdivision 3;
256J.20, subdivision 3; 256J.49, subdivision 13; 256J.626, subdivisions 3, 7;
256J.95, subdivision 3; Laws 2005, First Special Session chapter 4, article 8,
section 84, as amended; Laws 2007, chapter 147, article 2, section 21; proposing
coding for new law in Minnesota Statutes, chapters 145; 246B; repealing
Minnesota Statutes 2006, section 256B.0571, subdivision 8a; Laws 2003, First
Special Session chapter 5, section 11.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

HEALTH CARE

Section 1.

Minnesota Statutes 2006, section 125A.02, subdivision 1, is amended to
read:

Subdivision 1.

Child with a disability.

Every child who has a hearing impairment,
blindness, visual disability, speech or language impairment, physical disability, other
health impairment, mental disability, emotional/behavioral disorder, specific learning
disability, autism, traumatic brain injury, multiple disabilities, or deaf/blind disability and
needs special instruction and services, as determined by the standards of the commissioner,
is a child with a disability. new text begin A licensed physician, an advanced practice nurse, or a licensed
psychologist is qualified to make a diagnosis and determination of attention deficit
disorder or attention deficit hyperactivity disorder for purposes of identifying a child
with a disability. new text end In addition, every child under age three, and at local district discretion
from age three to age seven, who needs special instruction and services, as determined
by the standards of the commissioner, because the child has a substantial delay or has
an identifiable physical or mental condition known to hinder normal development is
a child with a disability.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2006, section 144A.45, subdivision 1, is amended to read:

Subdivision 1.

Rules.

The commissioner shall adopt rules for the regulation of
home care providers pursuant to sections 144A.43 to 144A.47. The rules shall include
the following:

deleted text begin (a) deleted text end new text begin (1) new text end provisions to assure, to the extent possible, the health, safety and well-being,
and appropriate treatment of persons who receive home care services;

deleted text begin (b) deleted text end new text begin (2) new text end requirements that home care providers furnish the commissioner with
specified information necessary to implement sections 144A.43 to 144A.47;

deleted text begin (c) deleted text end new text begin (3) new text end standards of training of home care provider personnel, which may vary
according to the nature of the services provided or the health status of the consumer;

deleted text begin (d) deleted text end new text begin (4) new text end standards for medication management which may vary according to the
nature of the services provided, the setting in which the services are provided, or the
status of the consumer. Medication management includes the central storage, handling,
distribution, and administration of medications;

deleted text begin (e) deleted text end new text begin (5) new text end standards for supervision of home care services requiring supervision by a
registered nurse or other appropriate health care professional which must occur on site
at least every 62 days, or more frequently if indicated by a clinical assessment, and in
accordance with sections 148.171 to 148.285 and rules adopted thereunder new text begin , except that,
notwithstanding the provisions of Minnesota Rules, part 4668.0110, subpart 5, item B,
supervision of a person performing home care aide tasks for a class B licensee providing
paraprofessional services must occur only every 180 days, or more frequently if indicated
by a clinical assessment new text end ;

deleted text begin (f) deleted text end new text begin (6) new text end standards for client evaluation or assessment which may vary according to the
nature of the services provided or the status of the consumer;

deleted text begin (g) deleted text end new text begin (7) new text end requirements for the involvement of a consumer's physician, the
documentation of physicians' orders, if required, and the consumer's treatment plan, and
the maintenance of accurate, current clinical records;

deleted text begin (h) deleted text end new text begin (8) new text end the establishment of different classes of licenses for different types of
providers and different standards and requirements for different kinds of home care
services; and

deleted text begin (i) deleted text end new text begin (9) new text end operating procedures required to implement the home care bill of rights.

Sec. 3.

Minnesota Statutes 2006, section 144A.45, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Home care aide tasks. new text end

new text begin Notwithstanding the provisions of Minnesota
Rules, part 4668.0110, subpart 1, item E, home care aide tasks also include assisting
toileting, transfers, and ambulation if the client is ambulatory and if the client has no
serious acute illness or infectious disease.
new text end

Sec. 4.

new text begin [145.1622] NOTIFICATION OF DISPOSITION OPTIONS REQUIRED.
new text end

new text begin Subdivision 1. new text end

new text begin Citation. new text end

new text begin This section may be cited as the "Grieving Parents Act."
new text end

new text begin Subd. 2. new text end

new text begin Notification required. new text end

new text begin Hospitals, clinics, and medical facilities having
custody of a fetus following a miscarriage must provide notification to the mother of her
right to arrange for the burial or cremation of the fetus. The notification may also include
other options.
new text end

new text begin Subd. 3. new text end

new text begin Election of disposition. new text end

new text begin If, within 24 hours of receiving notification, the
mother elects to arrange for the burial or cremation of the fetus, the hospital, clinic, or
medical facility must release the remains for burial or cremation following all applicable
requirements.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 5.

Minnesota Statutes 2006, section 150A.06, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Graduates of nonaccredited dental programs. new text end

new text begin A graduate of a
nonaccredited dental program who successfully completes the clinical licensure
examination and meets all other applicant requirements of the board, shall be licensed to
practice dentistry and granted a limited general dentist license by the board. The board
shall place limitations on the licensee's authority to practice by requiring the licensee to
practice under the general supervision of a Minnesota-licensed dentist approved by the
board. A person licensed under this subdivision must practice for three consecutive years
in Minnesota pursuant to a written agreement, approved by the board, between the licensee
and a Minnesota-licensed dentist who may limit the types of services authorized. At the
conclusion of the three-year period, the board shall grant an unlimited license without
further restrictions if all supervising dentists who had entered into written agreements with
the licensee during any part of the three-year period recommend unlimited licensure, and if
no corrective action or disciplinary action has been taken by the board against the licensee.
new text end

Sec. 6.

Minnesota Statutes 2006, section 256.01, is amended by adding a subdivision
to read:

new text begin Subd. 27. new text end

new text begin Statewide health information exchange. new text end

new text begin (a) The commissioner has the
authority to join and participate as a member in a legal entity developing and operating a
statewide health information exchange that shall meet the following criteria:
new text end

new text begin (1) the legal entity must meet all constitutional and statutory requirements to allow
the commissioner to participate; and
new text end

new text begin (2) the commissioner or the commissioner's designated representative must have
the right to participate in the governance of the legal entity under the same terms and
conditions and subject to the same requirements as any other member in the legal entity
and in that role shall act to advance state interests and lessen the burdens of government.
new text end

new text begin (b) Notwithstanding chapter 16C, the commissioner may pay the state's prorated
share of development-related expenses of the legal entity retroactively from October 29,
2007, regardless of the date the commissioner joins the legal entity as a member.
new text end

Sec. 7.

Minnesota Statutes 2006, section 256B.055, subdivision 12, is amended to read:

Subd. 12.

Disabled children.

(a) A person is eligible for medical assistance if the
person is under age 19 and qualifies as a disabled individual under United States Code,
title 42, section 1382c(a), and would be eligible for medical assistance under the state
plan if residing in a medical institution, and the child requires a level of care provided in
a hospital, nursing facility, or intermediate care facility for persons with developmental
disabilities, for whom home care is appropriate, provided that the cost to medical
assistance under this section is not more than the amount that medical assistance would pay
for if the child resides in an institution. After the child is determined to be eligible under
this section, the commissioner shall review the child's disability under United States Code,
title 42, section 1382c(a) and level of care defined under this section no more often than
annually and may elect, based on the recommendation of health care professionals under
contract with the state medical review team, to extend the review of disability and level of
care up to a maximum of four years. The commissioner's decision on the frequency of
continuing review of disability and level of care is not subject to administrative appeal
under section 256.045. new text begin The county agency shall send a notice of disability review to the
enrollee six months prior to the date the recertification of disability is due. new text end Nothing in this
subdivision shall be construed as affecting other redeterminations of medical assistance
eligibility under this chapter and annual cost-effective reviews under this section.

(b) For purposes of this subdivision, "hospital" means an institution as defined
in section 144.696, subdivision 3, 144.55, subdivision 3, or Minnesota Rules, part
4640.3600, and licensed pursuant to sections 144.50 to 144.58. For purposes of this
subdivision, a child requires a level of care provided in a hospital if the child is determined
by the commissioner to need an extensive array of health services, including mental health
services, for an undetermined period of time, whose health condition requires frequent
monitoring and treatment by a health care professional or by a person supervised by a
health care professional, who would reside in a hospital or require frequent hospitalization
if these services were not provided, and the daily care needs are more complex than
a nursing facility level of care.

A child with serious emotional disturbance requires a level of care provided in a
hospital if the commissioner determines that the individual requires 24-hour supervision
because the person exhibits recurrent or frequent suicidal or homicidal ideation or
behavior, recurrent or frequent psychosomatic disorders or somatopsychic disorders that
may become life threatening, recurrent or frequent severe socially unacceptable behavior
associated with psychiatric disorder, ongoing and chronic psychosis or severe, ongoing
and chronic developmental problems requiring continuous skilled observation, or severe
disabling symptoms for which office-centered outpatient treatment is not adequate, and
which overall severely impact the individual's ability to function.

(c) For purposes of this subdivision, "nursing facility" means a facility which
provides nursing care as defined in section 144A.01, subdivision 5, licensed pursuant to
sections 144A.02 to 144A.10, which is appropriate if a person is in active restorative
treatment; is in need of special treatments provided or supervised by a licensed nurse; or
has unpredictable episodes of active disease processes requiring immediate judgment
by a licensed nurse. For purposes of this subdivision, a child requires the level of care
provided in a nursing facility if the child is determined by the commissioner to meet
the requirements of the preadmission screening assessment document under section
256B.0911 and the home care independent rating document under section 256B.0655,
subdivision 4, clause (3), adjusted to address age-appropriate standards for children age 18
and under, pursuant to section 256B.0655, subdivision 3.

(d) For purposes of this subdivision, "intermediate care facility for persons with
developmental disabilities" or "ICF/MR" means a program licensed to provide services to
persons with developmental disabilities under section 252.28, and chapter 245A, and a
physical plant licensed as a supervised living facility under chapter 144, which together
are certified by the Minnesota Department of Health as meeting the standards in Code of
Federal Regulations, title 42, part 483, for an intermediate care facility which provides
services for persons with developmental disabilities who require 24-hour supervision
and active treatment for medical, behavioral, or habilitation needs. For purposes of this
subdivision, a child requires a level of care provided in an ICF/MR if the commissioner
finds that the child has a developmental disability in accordance with section 256B.092,
is in need of a 24-hour plan of care and active treatment similar to persons with
developmental disabilities, and there is a reasonable indication that the child will need
ICF/MR services.

(e) For purposes of this subdivision, a person requires the level of care provided
in a nursing facility if the person requires 24-hour monitoring or supervision and a plan
of mental health treatment because of specific symptoms or functional impairments
associated with a serious mental illness or disorder diagnosis, which meet severity criteria
for mental health established by the commissioner and published in March 1997 as
the Minnesota Mental Health Level of Care for Children and Adolescents with Severe
Emotional Disorders.

(f) The determination of the level of care needed by the child shall be made by
the commissioner based on information supplied to the commissioner by the parent or
guardian, the child's physician or physicians, and other professionals as requested by the
commissioner. The commissioner shall establish a screening team to conduct the level of
care determinations according to this subdivision.

(g) If a child meets the conditions in paragraph (b), (c), (d), or (e), the commissioner
must assess the case to determine whether:

(1) the child qualifies as a disabled individual under United States Code, title 42,
section 1382c(a), and would be eligible for medical assistance if residing in a medical
institution; and

(2) the cost of medical assistance services for the child, if eligible under this
subdivision, would not be more than the cost to medical assistance if the child resides in a
medical institution to be determined as follows:

(i) for a child who requires a level of care provided in an ICF/MR, the cost of
care for the child in an institution shall be determined using the average payment rate
established for the regional treatment centers that are certified as ICF's/MR;

(ii) for a child who requires a level of care provided in an inpatient hospital setting
according to paragraph (b), cost-effectiveness shall be determined according to Minnesota
Rules, part 9505.3520, items F and G; and

(iii) for a child who requires a level of care provided in a nursing facility according
to paragraph (c) or (e), cost-effectiveness shall be determined according to Minnesota
Rules, part 9505.3040, except that the nursing facility average rate shall be adjusted to
reflect rates which would be paid for children under age 16. The commissioner may
authorize an amount up to the amount medical assistance would pay for a child referred to
the commissioner by the preadmission screening team under section 256B.0911.

(h) Children eligible for medical assistance services under section 256B.055,
subdivision 12, as of June 30, 1995, must be screened according to the criteria in this
subdivision prior to January 1, 1996. Children found to be ineligible may not be removed
from the program until January 1, 1996.

Sec. 8.

Minnesota Statutes 2007 Supplement, section 256B.055, subdivision 14,
is amended to read:

Subd. 14.

Persons detained by law.

(a) Medical assistance may be paid for an
inmate of a correctional facility who is conditionally released as authorized under section
241.26, 244.065, or 631.425, if the individual does not require the security of a public
detention facility and is housed in a halfway house or community correction center, or
under house arrest and monitored by electronic surveillance in a residence approved
by the commissioner of corrections, and if the individual meets the other eligibility
requirements of this chapter.

(b) An individual who is enrolled in medical assistance, and who is charged with a
crime and incarcerated for less than 12 months shall be suspended from eligibility at the
time of incarceration until the individual is released. Upon release, medical assistance
eligibility is reinstated without reapplication using a reinstatement process and form, if the
individual is otherwise eligible.

(c) An individual, regardless of age, who is considered an inmate of a public
institution as defined in Code of Federal Regulations, title 42, section deleted text begin 435.1009 deleted text end new text begin 435.1010 new text end ,
is not eligible for medical assistance.

Sec. 9.

Minnesota Statutes 2006, section 256B.056, subdivision 2, is amended to read:

Subd. 2.

Homestead exclusion deleted text begin and homestead equity limit deleted text end for deleted text begin institutionalized deleted text end
persons new text begin residing in a long-term care facility new text end .

deleted text begin (a) deleted text end The homestead shall be excluded
for the first six calendar months of a person's stay in a long-term care facility and shall
continue to be excluded for as long as the recipient can be reasonably expected to return to
the homestead. For purposes of this subdivision, "reasonably expected to return to the
homestead" means the recipient's attending physician has certified that the expectation
is reasonable, and the recipient can show that the cost of care upon returning home will
be met through medical assistance or other sources. The homestead shall continue to
be excluded for persons residing in a long-term care facility if it is used as a primary
residence by one of the following individuals:

(1) the spouse;

(2) a child under age 21;

(3) a child of any age who is blind or permanently and totally disabled as defined in
the supplemental security income program;

(4) a sibling who has equity interest in the home and who resided in the home for at
least one year immediately before the date of the person's admission to the facility; or

(5) a child of any age deleted text begin , deleted text end or deleted text begin , subject to federal approval, deleted text end a grandchild of any age deleted text begin , deleted text end who
resided in the home for at least two years immediately before the date of the person's
admission to the facility, and who provided care to the person that permitted the person to
reside at home rather than in an institution.

deleted text begin (b) Effective for applications filed on or after July 1, 2006, and for renewals after
July 1, 2006, for persons who first applied for payment of long-term care services on
or after January 2, 2006, the equity interest in the homestead of an individual whose
eligibility for long-term care services is determined on or after January 1, 2006, shall not
exceed $500,000, unless it is the lawful residence of the individual's spouse or child
who is under age 21, blind, or disabled. The amount specified in this paragraph shall be
increased beginning in year 2011, from year to year based on the percentage increase in
the Consumer Price Index for all urban consumers (all items; United States city average),
rounded to the nearest $1,000. This provision may be waived in the case of demonstrated
hardship by a process to be determined by the secretary of health and human services
pursuant to section 6014 of the Deficit Reduction Act of 2005, Public Law 109-171.
deleted text end

Sec. 10.

Minnesota Statutes 2006, section 256B.056, is amended by adding a
subdivision to read:

new text begin Subd. 2a. new text end

new text begin Home equity limit for medical assistance payment of long-term
care services. new text end

new text begin (a) Effective for requests of medical assistance payment of long-term
care services filed on or after July 1, 2006, and for renewals on or after July 1, 2006,
for persons who received payment of long-term care services under a request filed on
or after January 1, 2006, the equity interest in the home of a person whose eligibility
for long-term care services is determined on or after January 1, 2006, shall not exceed
$500,000, unless it is the lawful residence of the person's spouse or child who is under
age 21, or a child of any age who is blind or permanently and totally disabled as defined
in the Supplemental Security Income program. The amount specified in this paragraph
shall be increased beginning in year 2011, from year to year based on the percentage
increase in the Consumer Price Index for all urban consumers (all items; United States city
average), rounded to the nearest $1,000.
new text end

new text begin (b) For purposes of this subdivision, a "home" means any real or personal property
interest, including an interest in an agricultural homestead as defined under section
273.124, subdivision 1, that, at the time of the request for medical assistance payment of
long-term care services, is the primary dwelling of the person or was the primary dwelling
of the person before receipt of long-term care services began outside of the home.
new text end

new text begin (c) A person denied or terminated from medical assistance payment of long-term
care services because the person's home equity exceeds the home equity limit may seek
a waiver based upon a hardship by filing a written request with the county agency.
Hardship is an imminent threat to the person's health and well-being that is demonstrated
by documentation of no alternatives for payment of long-term care services. The county
agency shall make a decision regarding the written request to waive the home equity limit
within 30 days if all necessary information has been provided. The county agency shall
send the person and the person's representative a written notice of decision on the request
for a demonstrated hardship waiver that also advises the person of appeal rights under the
fair hearing process of section 256.045.
new text end

Sec. 11.

Minnesota Statutes 2006, section 256B.056, subdivision 4a, is amended to
read:

Subd. 4a.

Asset verification.

For purposes of verification, deleted text begin the value of deleted text end new text begin an individual
is not required to make a good faith effort to sell new text end a life estate new text begin that is not excluded under
subdivision 2 and the life estate new text end shall be deleted text begin considered deleted text end new text begin deemed new text end not salable unless the owner
of the remainder interest intends to purchase the life estate, or the owner of the life estate
and the owner of the remainder sell the entire property. new text begin This subdivision applies only for
the purpose of determining eligibility for medical assistance, and does not apply to the
valuation of assets owned by either the institutional spouse or the community spouse
under section 256B.059, subdivision 2.
new text end

Sec. 12.

Minnesota Statutes 2006, section 256B.056, subdivision 11, is amended to
read:

Subd. 11.

Treatment of annuities.

(a) Any deleted text begin individual applying for or seeking
recertification of eligibility for deleted text end new text begin person requesting new text end medical assistance payment of long-term
care services shall provide a complete description of any interest either the deleted text begin individual deleted text end
new text begin person new text end or the deleted text begin individual's deleted text end new text begin person's new text end spouse has in annuities new text begin on a form designated by the
department. The form shall include a statement that the state becomes a preferred
remainder beneficiary of annuities or similar financial instruments by virtue of the receipt
of medical assistance payment of long-term care services new text end . The deleted text begin individual deleted text end new text begin person new text end and the
deleted text begin individual's deleted text end new text begin person's new text end spouse shall furnish the agency responsible for determining eligibility
with complete current copies of their annuities and related documents deleted text begin for review as part
of the application process on disclosure forms provided by the department as part of
their application deleted text end new text begin and complete the form designating the state as the preferred remainder
beneficiary for each annuity in which the person or the person's spouse has an interest new text end .

(b) deleted text begin The disclosure form shall include a statement that the department becomes the
remainder beneficiary under the annuity or similar financial instrument by virtue of the
receipt of medical assistance. deleted text end The deleted text begin disclosure form deleted text end new text begin department new text end shall deleted text begin include a deleted text end new text begin provide new text end
notice to the issuer of the department's right under this section as a preferred remainder
beneficiary under the annuity or similar financial instrument for medical assistance
furnished to the deleted text begin individual deleted text end new text begin person new text end or the deleted text begin individual's deleted text end new text begin person's new text end spouse, and deleted text begin require the
issuer to provide confirmation that a remainder beneficiary designation has been made
and to notify the county agency when there is a change in the amount of the income or
principal being withdrawn from the annuity or other similar financial instrument at the
time of the most recent disclosure required under this section. The individual and the
individual's spouse shall execute separate disclosure forms for each annuity or similar
financial instrument that they are required to disclose under this section and in which they
have an interest deleted text end new text begin provide notice of the issuer's responsibilities as provided in paragraph (c) new text end .

(c) An issuer of an annuity or similar financial instrument who receives notice
deleted text begin on a disclosure form deleted text end new text begin of the state's right to be named a preferred remainder beneficiary new text end
as described in paragraph (b) shall provide confirmation to the requesting agency that
deleted text begin a remainder beneficiary designating deleted text end the state has been made deleted text begin and deleted text end new text begin a preferred remainder
beneficiary. The issuer new text end shall new text begin also new text end notify the county agency when deleted text begin there is deleted text end a change in the
amount of income or principal being withdrawn from the annuity or other similar financial
instrument new text begin or a change in the state's preferred remainder beneficiary designation under
the annuity or other similar financial instrument occurs new text end . The county agency shall provide
the issuer with the name, address, and telephone number of a unit within the department
that the issuer can contact to comply with this paragraph.

new text begin (d) "Preferred remainder beneficiary" for purposes of this subdivision and sections
256B.0594 and 256B.0595 means the state is a remainder beneficiary in the first position in
an amount equal to the amount of medical assistance paid on behalf of the institutionalized
person, or is a remainder beneficiary in the second position if the institutionalized person
designates and is survived by a remainder beneficiary who is (1) a spouse who does not
reside in a medical institution, (2) a minor child, or (3) a child of any age who is blind or
permanently and totally disabled as defined in the Supplemental Security Income program.
Notwithstanding this paragraph, the state is the remainder beneficiary in the first position
if the spouse or child disposes of the remainder for less than fair market value.
new text end

new text begin (e) For purposes of this subdivision, "institutionalized person" and "long-term care
services" have the meanings given in section 256B.0595, subdivision 1, paragraph (h).
new text end

new text begin (f) For purposes of this subdivision, "medical institution" means a skilled
nursing facility, intermediate care facility, intermediate care facility for persons with
developmental disabilities, nursing facility, or inpatient hospital.
new text end

Sec. 13.

Minnesota Statutes 2006, section 256B.057, subdivision 1, is amended to read:

Subdivision 1.

Infants and pregnant women.

(a)(1) An infant less than one year of
age new text begin or a pregnant woman who has written verification of a positive pregnancy test from a
physician or licensed registered nurse new text end is eligible for medical assistance if countable family
income is equal to or less than 275 percent of the federal poverty guideline for the same
family size. deleted text begin A pregnant woman who has written verification of a positive pregnancy test
from a physician or licensed registered nurse is eligible for medical assistance if countable
family income is equal to or less than 200 percent of the federal poverty guideline for the
same family size. deleted text end For purposes of this subdivision, "countable family income" means the
amount of income considered available using the methodology of the AFDC program
under the state's AFDC plan as of July 16, 1996, as required by the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 104-193,
except for the earned income disregard and employment deductions.

(2) For applications processed within one calendar month prior to the effective date,
eligibility shall be determined by applying the income standards and methodologies in
effect prior to the effective date for any months in the six-month budget period before
that date and the income standards and methodologies in effect on the effective date for
any months in the six-month budget period on or after that date. The income standards
for each month shall be added together and compared to the applicant's total countable
income for the six-month budget period to determine eligibility.

(b)(1) [Expired, 1Sp2003 c 14 art 12 s 19]

(2) For applications processed within one calendar month prior to July 1, 2003,
eligibility shall be determined by applying the income standards and methodologies in
effect prior to July 1, 2003, for any months in the six-month budget period before July 1,
2003, and the income standards and methodologies in effect on the expiration date for any
months in the six-month budget period on or after July 1, 2003. The income standards
for each month shall be added together and compared to the applicant's total countable
income for the six-month budget period to determine eligibility.

new text begin (3) An amount equal to the amount of earned income exceeding 275 percent of
the federal poverty guideline, up to a maximum of the amount by which the combined
total of 185 percent of the federal poverty guideline plus the earned income disregards
and deductions allowed under the state's AFDC plan as of July 16, 1996, as required
by the Personal Responsibility and Work Opportunity Act of 1996 (PRWORA), Public
Law 104-193, exceeds 275 percent of the federal poverty guideline will be deducted for
pregnant women and infants less than one year of age.
new text end

(c) Dependent care and child support paid under court order shall be deducted from
the countable income of pregnant women.

(d) An infant born on or after January 1, 1991, to a woman who was eligible for and
receiving medical assistance on the date of the child's birth shall continue to be eligible for
medical assistance without redetermination until the child's first birthday, as long as the
child remains in the woman's household.

Sec. 14.

Minnesota Statutes 2006, section 256B.0571, subdivision 6, is amended to
read:

Subd. 6.

Partnership policy.

"Partnership policy" means a long-term care insurance
policy that meets the requirements under subdivision 10 and was issued on or after the
effective date of the state plan amendment implementing the partnership program in
Minnesota. new text begin Policies that are exchanged or that have riders or endorsements added on or
after the effective date of the state plan amendment as authorized by the commissioner of
commerce qualify as a partnership policy.
new text end

Sec. 15.

Minnesota Statutes 2006, section 256B.0571, subdivision 8, is amended to
read:

Subd. 8.

Program established.

(a) The commissioner, in cooperation with the
commissioner of commerce, shall establish the Minnesota partnership for long-term care
program to provide for the financing of long-term care through a combination of private
insurance and medical assistance.

(b) An individual who meets the requirements in this paragraph is eligible to
participate in the partnership program. The individual must:

(1) new text begin meet one of the following criteria:
new text end

new text begin (i) new text end be a new text begin beneficiary of, and a new text end Minnesota resident at the time coverage first became
effective under deleted text begin the deleted text end new text begin a new text end partnership policy deleted text begin ;
deleted text end

deleted text begin (2) be a beneficiary of a partnership policy deleted text end that deleted text begin (i) deleted text end new text begin either new text end is issued on or after the
effective date of the state plan amendment implementing the partnership program in
Minnesota, or deleted text begin (ii) deleted text end qualifies as a partnership policy deleted text begin under the provisions of subdivision 8a deleted text end new text begin
as authorized by the commissioner of commerce under subdivision 6 new text end ; deleted text begin and deleted text end new text begin or
new text end

new text begin (ii) be a beneficiary of a policy recognized under subdivision 17; and
new text end

deleted text begin (3) deleted text end new text begin (2) new text end have exhausted all of the benefits under the partnership policy as described
in this section. Benefits received under a long-term care insurance policy before July 1,
2006, do not count toward the exhaustion of benefits required in this subdivision.

Sec. 16.

Minnesota Statutes 2006, section 256B.0571, subdivision 9, is amended to
read:

Subd. 9.

Medical assistance eligibility.

(a) Upon deleted text begin application deleted text end new text begin request new text end for medical
assistance program payment of long-term care services by an individual who meets the
requirements described in subdivision 8, the commissioner shall determine the individual's
eligibility for medical assistance according to paragraphs (b) to (i).

(b) After determining assets subject to the asset limit under section 256B.056,
subdivision 3 or 3c, or 256B.057, subdivision 9 or 10, the commissioner shall allow
the individual to designate assets to be protected from recovery under subdivisions 13
and 15 up to the dollar amount of the benefits utilized under the partnership policy.
Designated assets shall be disregarded for purposes of determining eligibility for payment
of long-term care services.

(c) The individual shall identify the designated assets and the full fair market value
of those assets and designate them as assets to be protected at the time of initial application
for medical assistance. The full fair market value of real property or interests in real
property shall be based on the most recent full assessed value for property tax purposes
for the real property, unless the individual provides a complete professional appraisal by
a licensed appraiser to establish the full fair market value. The extent of a life estate in
real property shall be determined using the life estate table in the health care program's
manual. Ownership of any asset in joint tenancy shall be treated as ownership as tenants
in common for purposes of its designation as a disregarded asset. The unprotected value
of any protected asset is subject to estate recovery according to subdivisions 13 and 15.

(d) The right to designate assets to be protected is personal to the individual and
ends when the individual dies, except as otherwise provided in subdivisions 13 and
15. It does not include the increase in the value of the protected asset and the income,
dividends, or profits from the asset. It may be exercised by the individual or by anyone
with the legal authority to do so on the individual's behalf. It shall not be sold, assigned,
transferred, or given away.

(e) If the dollar amount of the benefits utilized under a partnership policy is greater
than the full fair market value of all assets protected at the time of the application for
medical assistance long-term care services, the individual may designate additional assets
that become available during the individual's lifetime for protection under this section.
The individual must make the designation in writing deleted text begin to the county agency deleted text end no later than
deleted text begin the last date on which the individual must report a change in circumstances to the county
agency, as provided for under the medical assistance program deleted text end new text begin ten days from the date the
designation is requested by the county agency new text end . Any excess used for this purpose shall not
be available to the individual's estate to protect assets in the estate from recovery under
section 256B.15 or 524.3-1202, or otherwise.

(f) This section applies only to estate recovery under United States Code, title 42,
section 1396p, subsections (a) and (b), and does not apply to recovery authorized by other
provisions of federal law, including, but not limited to, recovery from trusts under United
States Code, title 42, section 1396p, subsection (d)(4)(A) and (C), or to recovery from
annuities, or similar legal instruments, subject to section 6012, subsections (a) and (b), of
the Deficit Reduction Act of 2005, Public Law 109-171.

(g) An individual's protected assets owned by the individual's spouse who applies
for payment of medical assistance long-term care services shall not be protected assets or
disregarded for purposes of eligibility of the individual's spouse solely because they were
protected assets of the individual.

(h) Assets designated under this subdivision shall not be subject to penalty under
section 256B.0595.

(i) The commissioner shall otherwise determine the individual's eligibility
for payment of long-term care services according to medical assistance eligibility
requirements.

Sec. 17.

Minnesota Statutes 2006, section 256B.0571, subdivision 15, is amended to
read:

Subd. 15.

Limitation on liens.

(a) An individual's interest in real property shall not
be subject to a medical assistance lien new text begin under sections 514.980 to 514.985 new text end or a deleted text begin notice of
potential claim deleted text end new text begin lien arising under section 256B.15 new text end while and to the extent it is protected
under subdivision 9. new text begin An individual's interest in real property that exceeds the value
protected under subdivision 9 is subject to a lien for recovery.
new text end

(b) Medical assistance liens new text begin under sections 514.980 to 514.985 new text end or liens arising
under deleted text begin notices of potential claims deleted text end new text begin section 256B.15 new text end against an individual's interests in real
property in the individual's estate that are designated as protected under subdivision 13,
paragraph (b), shall be released to the extent of the dollar value of the protection applied
to the interest.

(c) If an interest in real property is protected from a lien for recovery of medical
assistance paid on behalf of the individual under paragraph (a) or (b), no lien for recovery
of medical assistance paid on behalf of that individual shall be filed against the protected
interest in real property after it is distributed to the individual's heirs or devisees.

Sec. 18.

Minnesota Statutes 2006, section 256B.0571, is amended by adding a
subdivision to read:

new text begin Subd. 17. new text end

new text begin Reciprocal agreements. new text end

new text begin The commissioner may enter into an agreement
with any other state with a partnership program under United States Code, title 42,
section 1396p(b)(1)(C), for reciprocal recognition of qualified long-term care insurance
policies purchased under each state's partnership program. The commissioner shall notify
the secretary of the United States Department of Health and Human Services if the
commissioner declines to enter into a national reciprocal agreement.
new text end

Sec. 19.

Minnesota Statutes 2006, section 256B.058, is amended to read:

256B.058 TREATMENT OF INCOME OF INSTITUTIONALIZED SPOUSE.

Subdivision 1.

Income not available.

The income described in subdivisions 2
and 3 shall be deducted from an institutionalized spouse's monthly income and is not
considered available for payment of the monthly costs of an institutionalized deleted text begin person in
the institution deleted text end new text begin spouse new text end after deleted text begin the person has been deleted text end new text begin the institutionalized spouse has been new text end
determined eligible for medical assistance.

Subd. 2.

Monthly income allowance for community spouse.

(a) For an
institutionalized spouse deleted text begin with a spouse residing in the community deleted text end , monthly income may be
allocated to the community spouse as a monthly income allowance for the community
spouse. Beginning with the first full calendar month the institutionalized spouse is
in the institution, the monthly income allowance is not considered available to the
institutionalized spouse for monthly payment of costs of care in the institution as long as
the income is made available to the community spouse.

(b) The monthly income allowance is the amount by which the community spouse's
monthly maintenance needs allowance under paragraphs (c) and (d) exceeds the amount
of monthly income otherwise available to the community spouse.

(c) The community spouse's monthly maintenance needs allowance is the lesser of
$1,500 or 122 percent of the monthly federal poverty guideline for a family of two plus
an excess shelter allowance. The excess shelter allowance is for the amount of shelter
expenses that exceed 30 percent of 122 percent of the federal poverty guideline line for a
family of two. Shelter expenses are the community spouse's expenses for rent, mortgage
payments including principal and interest, taxes, insurance, required maintenance charges
for a cooperative or condominium that is the community spouse's principal residence,
and the standard utility allowance under section 5(e) of the federal Food Stamp Act of
1977. If the community spouse has a required maintenance charge for a cooperative or
condominium, the standard utility allowance must be reduced by the amount of utility
expenses included in the required maintenance charge.

If the community or institutionalized spouse establishes that the community spouse
needs income greater than the monthly maintenance needs allowance determined in this
paragraph due to exceptional circumstances resulting in significant financial duress, the
monthly maintenance needs allowance may be increased to an amount that provides
needed additional income.

(d) The percentage of the federal poverty guideline used to determine the monthly
maintenance needs allowance in paragraph (c) is increased to 133 percent on July 1,
1991, and to 150 percent on July 1, 1992. Adjustments in the income limits due to annual
changes in the federal poverty guidelines shall be implemented the first day of July
following publication of the annual changes. The $1,500 maximum must be adjusted
January 1, 1990, and every January 1 after that by the same percentage increase in the
Consumer Price Index for all urban consumers (all items; United States city average)
between the two previous Septembers.

(e) If a court has entered an order against an institutionalized spouse for monthly
income for support of the community spouse, the community spouse's monthly income
allowance under this subdivision shall not be less than the amount of the monthly income
ordered.

Subd. 3.

Family allowance.

(a) A family allowance determined under paragraph
(b) is not considered available to the institutionalized spouse for monthly payment of costs
of care in the institution.

(b) The family allowance is equal to one-third of the amount by which 122 percent
of the monthly federal poverty guideline for a family of two exceeds the monthly income
for that family member.

(c) For purposes of this subdivision, the term family member only includes a
minor or dependent child new text begin as defined in the Internal Revenue Code new text end , dependent parent, or
dependent sibling of the institutionalized or community spouse if the sibling resides with
the community spouse.

(d) The percentage of the federal poverty guideline used to determine the family
allowance in paragraph (b) is increased to 133 percent on July 1, 1991, and to 150 percent
on July 1, 1992. Adjustments in the income limits due to annual changes in the federal
poverty guidelines shall be implemented the first day of July following publication of
the annual changes.

Subd. 4.

Treatment of income.

(a) No income of the community spouse will
be considered available to an eligible institutionalized spouse, beginning the first full
calendar month of institutionalization, except as provided in this subdivision.

(b) In determining the income of an institutionalized spouse or community spouse,
after the institutionalized spouse has been determined eligible for medical assistance,
the following rules apply.

(1) For income that is not from a trust, availability is determined according to items
(i) to (v), unless the instrument providing the income otherwise specifically provides:

(i) if payment is made solely in the name of one spouse, the income is considered
available only to that spouse;

(ii) if payment is made in the names of both spouses, one-half of the income is
considered available to each;

(iii) if payment is made in the names of one or both spouses together with one or
more other persons, the income is considered available to each spouse according to the
spouse's interest, or one-half of the joint interest is considered available to each spouse
if each spouse's interest is not specified;

(iv) if there is no instrument that establishes ownership, one-half of the income is
considered available to each spouse; and

(v) either spouse may rebut the determination of availability of income by showing
by a preponderance of the evidence that ownership interests are different than provided
above.

(2) For income from a trust, income is considered available to each spouse as
provided in the trust. If the trust does not specify an amount available to either or both
spouses, availability will be determined according to items (i) to (iii):

(i) if payment of income is made only to one spouse, the income is considered
available only to that spouse;

(ii) if payment of income is made to both spouses, one-half is considered available to
each; and

(iii) if payment is made to either or both spouses and one or more other persons,
the income is considered available to each spouse in proportion to each spouse's interest,
or if no such interest is specified, one-half of the joint interest is considered available
to each spouse.

Sec. 20.

Minnesota Statutes 2006, section 256B.059, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section and deleted text begin section deleted text end new text begin sections
256B.058 and new text end 256B.0595, the terms defined in this subdivision have the meanings given
them.

(b) "Community spouse" means the spouse of an institutionalized spouse.

(c) "Spousal share" means one-half of the total value of all assets, to the extent that
either the institutionalized spouse or the community spouse had an ownership interest at
the time of new text begin the first continuous period of new text end institutionalization.

(d) "Assets otherwise available to the community spouse" means assets individually
or jointly owned by the community spouse, other than assets excluded by subdivision 5,
paragraph (c).

(e) "Community spouse asset allowance" is the value of assets that can be transferred
under subdivision 3.

(f) "Institutionalized spouse" means a person who is:

(1) in a hospital, nursing facility, or intermediate care facility for persons with
developmental disabilities, or receiving home and community-based services under
section 256B.0915 deleted text begin or 256B.49 deleted text end , and is expected to remain in the facility or institution or
receive the home and community-based services for at least 30 consecutive days; and

(2) married to a person who is not in a hospital, nursing facility, or intermediate
care facility for persons with developmental disabilities, and is not receiving home and
community-based services under section 256B.0915 new text begin , 256B.092, new text end or 256B.49.

(g) "For the sole benefit of" means no other individual or entity can benefit in any
way from the assets or income at the time of a transfer or at any time in the future.

new text begin (h) "Continuous period of institutionalization" means a 30-consecutive-day period
of time in which a person is expected to stay in a medical or long-term care facility,
or receive home and community-based services that would qualify for coverage under
the elderly waiver (EW) or alternative care (AC) programs. For a stay in a facility, the
30-consecutive-day period begins on the date of entry into a medical or long-term care
facility. For receipt of home and community-based services, the 30-consecutive-day
period begins on the date that the following conditions are met:
new text end

new text begin (1) the person is receiving services that meet the nursing facility level of care
determined by a long-term care consultation;
new text end

new text begin (2) the person has received the long-term care consultation within the past 60 days;
new text end

new text begin (3) the services are paid by the EW program under section 256B.0915 or the AC
program under section 256B.0913 or would qualify for payment under the EW or AC
programs if the person were otherwise eligible for either program, and but for the receipt
of such services the person would have resided in a nursing facility; and
new text end

new text begin (4) the services are provided by a licensed provider qualified to provide home and
community-based services.
new text end

Sec. 21.

Minnesota Statutes 2006, section 256B.059, subdivision 1a, is amended to
read:

Subd. 1a.

Institutionalized spouse.

The provisions of this section apply only
when a spouse deleted text begin is institutionalized for a deleted text end new text begin begins the first new text end continuous period deleted text begin beginning deleted text end new text begin of
institutionalization new text end on or after October 1, 1989.

Sec. 22.

Minnesota Statutes 2006, section 256B.0594, is amended to read:

256B.0594 PAYMENT OF BENEFITS FROM AN ANNUITY.

When payment becomes due under an annuity that names the department a
remainder beneficiary deleted text begin as described in section 256B.056, subdivision 11 deleted text end , the issuer shall
request and the department shall, within 45 days after receipt of the request, provide
a written statement of the total amount of the medical assistance paid new text begin or confirmation
that any family member designated as a remainder beneficiary meets requirements for
qualification as a beneficiary in the first position new text end . Upon timely receipt of the written
statement of the amount of medical assistance paid, the issuer shall pay the department an
amount equal to the lesser of the amount due the department under the annuity or the total
amount of medical assistance paid on behalf of the individual or the individual's spouse.
Any amounts remaining after the issuer's payment to the department shall be payable
according to the terms of the annuity or similar financial instrument. The county agency
or the department shall provide the issuer with the name, address, and telephone number
of a unit within the department the issuer can contact to comply with this section. The
requirements of section 72A.201, subdivision 4, clause (3), shall not apply to payments
made under this section until the issuer has received final payment information from the
department, if the issuer has notified the beneficiary of the requirements of this section at
the time it initially requests payment information from the department.

Sec. 23.

Minnesota Statutes 2006, section 256B.0595, subdivision 1, is amended to
read:

Subdivision 1.

Prohibited transfers.

(a) For transfers of assets made on or before
August 10, 1993, if deleted text begin a deleted text end new text begin an institutionalized new text end person or the new text begin institutionalized new text end person's spouse
has given away, sold, or disposed of, for less than fair market value, any asset or interest
therein, except assets other than the homestead that are excluded under the supplemental
security program, within 30 months before or any time after the date of institutionalization
if the person has been determined eligible for medical assistance, or within 30 months
before or any time after the date of the first approved application for medical assistance
if the person has not yet been determined eligible for medical assistance, the person is
ineligible for long-term care services for the period of time determined under subdivision
2.

(b) Effective for transfers made after August 10, 1993, deleted text begin a deleted text end new text begin an institutionalized new text end person,
deleted text begin a deleted text end new text begin an institutionalized new text end person's spouse, or any person, court, or administrative body with
legal authority to act in place of, on behalf of, at the direction of, or upon the request of the
new text begin institutionalized new text end person or new text begin institutionalized new text end person's spouse, may not give away, sell, or
dispose of, for less than fair market value, any asset or interest therein, except assets other
than the homestead that are excluded under the supplemental security income program,
for the purpose of establishing or maintaining medical assistance eligibility. This applies
to all transfers, including those made by a community spouse after the month in which
the institutionalized spouse is determined eligible for medical assistance. For purposes of
determining eligibility for long-term care services, any transfer of such assets within 36
months before or any time after an institutionalized person deleted text begin applies for deleted text end new text begin requests new text end medical
assistance new text begin payment of long-term care services new text end , or 36 months before or any time after a
medical assistance recipient becomes new text begin an new text end institutionalized new text begin person new text end , for less than fair market
value may be considered. Any such transfer is presumed to have been made for the purpose
of establishing or maintaining medical assistance eligibility and the new text begin institutionalized new text end
person is ineligible for long-term care services for the period of time determined under
subdivision 2, unless the new text begin institutionalized new text end person furnishes convincing evidence to
establish that the transaction was exclusively for another purpose, or unless the transfer is
permitted under subdivision 3 or 4. In the case of payments from a trust or portions of a
trust that are considered transfers of assets under federal law, or in the case of any other
disposal of assets made on or after February 8, 2006, any transfers made within 60 months
before or any time after an institutionalized person deleted text begin applies for deleted text end new text begin requests new text end medical assistance
new text begin payment of long-term care services new text end and within 60 months before or any time after a
medical assistance recipient becomes new text begin an new text end institutionalized new text begin person new text end , may be considered.

(c) This section applies to transfers, for less than fair market value, of income
or assets, including assets that are considered income in the month received, such as
inheritances, court settlements, and retroactive benefit payments or income to which the new text begin
institutionalized new text end person or the new text begin institutionalized new text end person's spouse is entitled but does not
receive due to action by the new text begin institutionalized new text end person, the new text begin institutionalized new text end person's spouse,
or any person, court, or administrative body with legal authority to act in place of, on
behalf of, at the direction of, or upon the request of the new text begin institutionalized new text end person or the new text begin
institutionalized new text end person's spouse.

(d) This section applies to payments for care or personal services provided by a
relative, unless the compensation was stipulated in a notarized, written agreement which
was in existence when the service was performed, the care or services directly benefited
the person, and the payments made represented reasonable compensation for the care
or services provided. A notarized written agreement is not required if payment for the
services was made within 60 days after the service was provided.

(e) This section applies to the portion of any asset or interest that deleted text begin a deleted text end new text begin an institutionalized new text end
person, deleted text begin a deleted text end new text begin an institutionalized new text end person's spouse, or any person, court, or administrative body
with legal authority to act in place of, on behalf of, at the direction of, or upon the request
of the new text begin institutionalized new text end person or the new text begin institutionalized new text end person's spouse, transfers to any
annuity that exceeds the value of the benefit likely to be returned to the new text begin institutionalized
new text end person or new text begin institutionalized person's new text end spouse while alive, based on estimated life expectancy
deleted text begin using the life expectancy tables employed by the supplemental security income program
to determine the value of an agreement for services for life deleted text end new text begin as determined according to the
current actuarial tables published by the Office of the Chief Actuary of the Social Security
Administration new text end . The commissioner may adopt rules reducing life expectancies based on
the need for long-term care. This section applies to an annuity deleted text begin described in this paragraph deleted text end
purchased on or after March 1, 2002, that:

(1) is not purchased from an insurance company or financial institution that is
subject to licensing or regulation by the Minnesota Department of Commerce or a similar
regulatory agency of another state;

(2) does not pay out principal and interest in equal monthly installments; or

(3) does not begin payment at the earliest possible date after annuitization.

(f) Effective for transactions, including the purchase of an annuity, occurring on
or after February 8, 2006, deleted text begin the purchase of an annuity deleted text end by or on behalf of an deleted text begin individual deleted text end new text begin
institutionalized person new text end who has applied for or is receiving long-term care services or the
deleted text begin individual's deleted text end new text begin institutionalized person's new text end spouse shall be treated as the disposal of an asset for
less than fair market value unless the department is named deleted text begin as the deleted text end new text begin a preferred new text end remainder
beneficiary deleted text begin in first position for an amount equal to at least the total amount of medical
assistance paid on behalf of the individual or the individual's spouse; or the department
is named as the remainder beneficiary in second position for an amount equal to at least
the total amount of medical assistance paid on behalf of the individual or the individual's
spouse after the individual's community spouse or minor or disabled child and is named as
the remainder beneficiary in the first position if the community spouse or a representative
of the minor or disabled child disposes of the remainder for less than fair market value deleted text end new text begin as
described in section 256B.056, subdivision 11 new text end . Any subsequent change to the designation
of the department as a new text begin preferred new text end remainder beneficiary shall result in the annuity being
treated as a disposal of assets for less than fair market value. The amount of such transfer
shall be the maximum amount the deleted text begin individual deleted text end new text begin institutionalized person new text end or the deleted text begin individual's deleted text end new text begin
institutionalized person's new text end spouse could receive from the annuity or similar financial
instrument. Any change in the amount of the income or principal being withdrawn
from the annuity or other similar financial instrument at the time of the most recent
disclosure shall be deemed to be a transfer of assets for less than fair market value unless
the deleted text begin individual deleted text end new text begin institutionalized person new text end or the deleted text begin individual's deleted text end new text begin institutionalized person's new text end spouse
demonstrates that the transaction was for fair market value. new text begin In the event a distribution
of income or principal has been improperly distributed or disbursed from an annuity or
other retirement planning instrument of an institutionalized person or the institutionalized
person's spouse, a cause of action exists against the individual receiving the improper
distribution for the cost of medical assistance services provided or the amount of the
improper distribution, whichever is less.
new text end

(g) Effective for transactions, including the purchase of an annuity, occurring on
or after February 8, 2006, deleted text begin the purchase of an annuity deleted text end by or on behalf of an deleted text begin individual deleted text end new text begin
institutionalized person new text end applying for or receiving long-term care services shall be treated
as a disposal of assets for less than fair market value unless it is:

(i) an annuity described in subsection (b) or (q) of section 408 of the Internal
Revenue Code of 1986; or

(ii) purchased with proceeds from:

(A) an account or trust described in subsection (a), (c), or (p) of section 408 of the
Internal Revenue Code;

(B) a simplified employee pension within the meaning of section 408(k) of the
Internal Revenue Code; or

(C) a Roth IRA described in section 408A of the Internal Revenue Code; or

(iii) an annuity that is irrevocable and nonassignable; is actuarially sound as
determined in accordance with actuarial publications of the Office of the Chief Actuary of
the Social Security Administration; and provides for payments in equal amounts during
the term of the annuity, with no deferral and no balloon payments made.

(h) For purposes of this section, long-term care services include services in a nursing
facility, services that are eligible for payment according to section 256B.0625, subdivision
2, because they are provided in a swing bed, intermediate care facility for persons with
developmental disabilities, and home and community-based services provided pursuant
to sections 256B.0915, 256B.092, and 256B.49. For purposes of this subdivision and
subdivisions 2, 3, and 4, "institutionalized person" includes a person who is an inpatient
in a nursing facility or in a swing bed, or intermediate care facility for persons with
developmental disabilities or who is receiving home and community-based services under
sections 256B.0915, 256B.092, and 256B.49.

(i) This section applies to funds used to purchase a promissory note, loan, or
mortgage unless the note, loan, or mortgage:

(1) has a repayment term that is actuarially sound;

(2) provides for payments to be made in equal amounts during the term of the loan,
with no deferral and no balloon payments made; and

(3) prohibits the cancellation of the balance upon the death of the lender.

In the case of a promissory note, loan, or mortgage that does not meet an exception
in clauses (1) to (3), the value of such note, loan, or mortgage shall be the outstanding
balance due as of the date of the deleted text begin individual's application deleted text end new text begin institutionalized person's request
new text end for new text begin medical assistance payment of new text end long-term care services.

(j) This section applies to the purchase of a life estate interest in another deleted text begin individual's deleted text end
new text begin person's new text end home unless the purchaser resides in the home for a period of at least one year
after the date of purchase.

Sec. 24.

Minnesota Statutes 2006, section 256B.0595, subdivision 2, is amended to
read:

Subd. 2.

Period of ineligibility.

(a) For any uncompensated transfer occurring on or
before August 10, 1993, the number of months of ineligibility for long-term care services
shall be the lesser of 30 months, or the uncompensated transfer amount divided by the
average medical assistance rate for nursing facility services in the state in effect on the
date of application. The amount used to calculate the average medical assistance payment
rate shall be adjusted each July 1 to reflect payment rates for the previous calendar year.
The period of ineligibility begins with the month in which the assets were transferred.
If the transfer was not reported to the local agency at the time of application, and the
applicant received long-term care services during what would have been the period of
ineligibility if the transfer had been reported, a cause of action exists against the transferee
for the cost of long-term care services provided during the period of ineligibility, or for the
uncompensated amount of the transfer, whichever is less. deleted text begin The action may be brought by
the state or the local agency responsible for providing medical assistance under chapter
256G. deleted text end The uncompensated transfer amount is the fair market value of the asset at the time
it was given away, sold, or disposed of, less the amount of compensation received.

(b) For uncompensated transfers made after August 10, 1993, the number of months
of ineligibility for long-term care services shall be the total uncompensated value of the
resources transferred divided by the average medical assistance rate for nursing facility
services in the state in effect on the date of application. The amount used to calculate the
average medical assistance payment rate shall be adjusted each July 1 to reflect payment
rates for the previous calendar year. The period of ineligibility begins with the first day
of the month after the month in which the assets were transferred except that if one or
more uncompensated transfers are made during a period of ineligibility, the total assets
transferred during the ineligibility period shall be combined and a penalty period calculated
to begin on the first day of the month after the month in which the first uncompensated
transfer was made. If the transfer was reported to the local agency after the date that
advance notice of a period of ineligibility that affects the next month could be provided to
the recipient and the recipient received medical assistance services or the transfer was not
reported to the local agency, and the applicant or recipient received medical assistance
services during what would have been the period of ineligibility if the transfer had been
reported, a cause of action exists against the transferee for deleted text begin the cost of medical assistance deleted text end new text begin
that portion of long-term care new text end services provided during the period of ineligibility, or for
the uncompensated amount of the transfer, whichever is less. deleted text begin The action may be brought
by the state or the local agency responsible for providing medical assistance under chapter
256G. deleted text end The uncompensated transfer amount is the fair market value of the asset at the
time it was given away, sold, or disposed of, less the amount of compensation received.
Effective for transfers made on or after March 1, 1996, involving persons who apply for
medical assistance on or after April 13, 1996, no cause of action exists for a transfer unless:

(1) the transferee knew or should have known that the transfer was being made by a
person who was a resident of a long-term care facility or was receiving that level of care in
the community at the time of the transfer;

(2) the transferee knew or should have known that the transfer was being made to
assist the person to qualify for or retain medical assistance eligibility; or

(3) the transferee actively solicited the transfer with intent to assist the person to
qualify for or retain eligibility for medical assistance.

(c) For uncompensated transfers made on or after February 8, 2006, the period
of ineligibility new text begin :
new text end

new text begin (1) for uncompensated transfers by or on behalf of individuals receiving medical
assistance payment of long-term care services, new text end begins deleted text begin on deleted text end the first day of the month
deleted text begin in which deleted text end new text begin following new text end advance notice deleted text begin can be given following deleted text end new text begin of the penalty period, but no
later than the first day of new text end the month deleted text begin in which assets have been transferred for less than
fair market value, deleted text end new text begin that follows three full calendar months from the date of the report
or discovery of the transfer; new text end or

new text begin (2) for uncompensated transfers by individuals requesting medical assistance
payment of long-term care services, begins new text end the date on which the individual is eligible
for medical assistance under the Medicaid state plan and would otherwise be receiving
long-term care services based on an approved application for such care but for the
application of the penalty period, deleted text begin whichever is later, deleted text end new text begin ; new text end and deleted text begin which does not occur deleted text end

new text begin (3) cannot begin new text end during any other period of ineligibility.

(d) If a calculation of a penalty period results in a partial month, payments for
long-term care services shall be reduced in an amount equal to the fraction.

(e) In the case of multiple fractional transfers of assets in more than one month for
less than fair market value on or after February 8, 2006, the period of ineligibility is
calculated by treating the total, cumulative, uncompensated value of all assets transferred
during all months on or after February 8, 2006, as one transfer.

Sec. 25.

Minnesota Statutes 2006, section 256B.0595, subdivision 3, is amended to
read:

Subd. 3.

Homestead exception to transfer prohibition.

(a) An institutionalized
person is not ineligible for long-term care services due to a transfer of assets for less than
fair market value if the asset transferred was a homestead and:

(1) title to the homestead was transferred to the individual's:

(i) spouse;

(ii) child who is under age 21;

(iii) blind or permanently and totally disabled child as defined in the supplemental
security income program;

(iv) sibling who has equity interest in the home and who was residing in the home
for a period of at least one year immediately before the date of the individual's admission
to the facility; or

(v) son or daughter who was residing in the individual's home for a period of at least
two years immediately before the date deleted text begin of the individual's admission to the facility deleted text end new text begin the
individual became an institutionalized person new text end , and who provided care to the individual
that, as certified by the individual's attending physician, permitted the individual to reside
at home rather than new text begin receive care new text end in an institution or facility;

(2) a satisfactory showing is made that the individual intended to dispose of the
homestead at fair market value or for other valuable consideration; or

(3) the local agency grants a waiver of a penalty resulting from a transfer for less
than fair market value because denial of eligibility would cause undue hardship for the
individual, based on imminent threat to the individual's health and well-being. Whenever
an applicant or recipient is denied eligibility because of a transfer for less than fair market
value, the local agency shall notify the applicant or recipient that the applicant or recipient
may request a waiver of the penalty if the denial of eligibility will cause undue hardship.
With the written consent of the individual or the personal representative of the individual,
a long-term care facility in which an individual is residing may file an undue hardship
waiver request, on behalf of the individual who is denied eligibility for long-term care
services on or after July 1, 2006, due to a period of ineligibility resulting from a transfer on
or after February 8, 2006. In evaluating a waiver, the local agency shall take into account
whether the individual was the victim of financial exploitation, whether the individual has
made reasonable efforts to recover the transferred property or resource, and other factors
relevant to a determination of hardship. If the local agency does not approve a hardship
waiver, the local agency shall issue a written notice to the individual stating the reasons
for the denial and the process for appealing the local agency's decision.

(b) When a waiver is granted under paragraph (a), clause (3), a cause of action exists
against the person to whom the homestead was transferred for that portion of long-term
care services deleted text begin granted deleted text end new text begin provided new text end within:

(1) 30 months of a transfer made on or before August 10, 1993;

(2) 60 months if the homestead was transferred after August 10, 1993, to a trust or
portion of a trust that is considered a transfer of assets under federal law;

(3) 36 months if transferred in any other manner after August 10, 1993, but prior
to February 8, 2006; or

(4) 60 months if the homestead was transferred on or after February 8, 2006,

or the amount of the uncompensated transfer, whichever is less, together with the
costs incurred due to the action. deleted text begin The action shall be brought by the state unless the
state delegates this responsibility to the local agency responsible for providing medical
assistance under chapter 256G.
deleted text end

Sec. 26.

Minnesota Statutes 2006, section 256B.0595, subdivision 4, is amended to
read:

Subd. 4.

Other exceptions to transfer prohibition.

An institutionalized person
who has made, or whose spouse has made a transfer prohibited by subdivision 1, is not
ineligible for long-term care services if one of the following conditions applies:

(1) the assets were transferred to the individual's spouse or to another for the sole
benefit of the spouse; or

(2) the institutionalized spouse, prior to being institutionalized, transferred assets
to a spouse, provided that the spouse to whom the assets were transferred does not then
transfer those assets to another person for less than fair market value. (At the time when
one spouse is institutionalized, assets must be allocated between the spouses as provided
under section 256B.059); or

(3) the assets were transferred to the individual's child who is blind or permanently
and totally disabled as determined in the supplemental security income program; or

(4) a satisfactory showing is made that the individual intended to dispose of the
assets either at fair market value or for other valuable consideration; or

(5) the local agency determines that denial of eligibility for long-term care services
would work an undue hardship and grants a waiver of a penalty resulting from a transfer
for less than fair market value based on an imminent threat to the individual's health
and well-being. Whenever an applicant or recipient is denied eligibility because of a
transfer for less than fair market value, the local agency shall notify the applicant or
recipient that the applicant or recipient may request a waiver of the penalty if the denial of
eligibility will cause undue hardship. With the written consent of the individual or the
personal representative of the individual, a long-term care facility in which an individual
is residing may file an undue hardship waiver request, on behalf of the individual who
is denied eligibility for long-term care services on or after July 1, 2006, due to a period
of ineligibility resulting from a transfer on or after February 8, 2006. In evaluating a
waiver, the local agency shall take into account whether the individual was the victim of
financial exploitation, whether the individual has made reasonable efforts to recover the
transferred property or resource, whether the individual has taken any action to prevent
the designation of the department as a remainder beneficiary on an annuity as described
in section 256B.056, subdivision 11, and other factors relevant to a determination of
hardship. new text begin The local agency shall make a determination within 30 days of the receipt of all
necessary information needed to make such a determination. new text end If the local agency does not
approve a hardship waiver, the local agency shall issue a written notice to the individual
stating the reasons for the denial and the process for appealing the local agency's decision.
When a waiver is granted, a cause of action exists against the person to whom the assets
were transferred for that portion of long-term care services deleted text begin granted deleted text end new text begin provided new text end within:

(i) 30 months of a transfer made on or before August 10, 1993;

(ii) 60 months of a transfer if the assets were transferred after August 30, 1993, to a
trust or portion of a trust that is considered a transfer of assets under federal law;

(iii) 36 months of a transfer if transferred in any other manner after August 10, 1993,
but prior to February 8, 2006; or

(iv) 60 months of any transfer made on or after February 8, 2006,

or the amount of the uncompensated transfer, whichever is less, together with the
costs incurred due to the action deleted text begin . The action shall be brought by the state unless the
state delegates this responsibility to the local agency responsible for providing medical
assistance under this chapter deleted text end ; or

(6) for transfers occurring after August 10, 1993, the assets were transferred by
the person or person's spouse: (i) into a trust established for the sole benefit of a son or
daughter of any age who is blind or disabled as defined by the Supplemental Security
Income program; or (ii) into a trust established for the sole benefit of an individual who is
under 65 years of age who is disabled as defined by the Supplemental Security Income
program.

"For the sole benefit of" has the meaning found in section 256B.059, subdivision 1.

Sec. 27.

Minnesota Statutes 2006, section 256B.0595, is amended by adding a
subdivision to read:

new text begin Subd. 8. new text end

new text begin Cause of action; transfer prior to death. new text end

new text begin (a) A cause of action exists
against a transferee who receives assets for less than fair market value, either:
new text end

new text begin (1) from a person who was a recipient of medical assistance and who made an
uncompensated transfer that was known to the county agency but a penalty period could
not be implemented under this section due to the death of the person; or
new text end

new text begin (2) from a person who was a recipient of medical assistance who made an
uncompensated transfer that was not known to the county agency and the transfer was
made with the intent to hinder, delay, or defraud the state or local agency from recovering
as allowed under section 256B.15. In determining intent under this clause consideration
may be given, among other factors, to whether:
new text end

new text begin (i) the transfer was to a family member;
new text end

new text begin (ii) the transferor retained possession or control of the property after the transfer;
new text end

new text begin (iii) the transfer was concealed;
new text end

new text begin (iv) the transfer included the majority of the transferor's assets;
new text end

new text begin (v) the value of the consideration received was not reasonably equivalent to the fair
market value of the property; and
new text end

new text begin (vi) the transfer occurred shortly before the death of the transferor.
new text end

new text begin (b) No cause of action exists under this subdivision unless:
new text end

new text begin (1) the transferee knew or should have known that the transfer was being made by a
person who was receiving medical assistance as described in section 256B.15, subdivision
1, paragraph (b); and
new text end

new text begin (2) the transferee received the asset without providing a reasonable equivalent fair
market value in exchange for the transfer.
new text end

new text begin (c) The cause of action is for the uncompensated amount of the transfer or the
amount of medical assistance paid on behalf of the person, whichever is less. The
uncompensated transfer amount is the fair market value of the asset at the time it was
given away, sold, or disposed of, less the amount of the compensation received.
new text end

Sec. 28.

Minnesota Statutes 2006, section 256B.0595, is amended by adding a
subdivision to read:

new text begin Subd. 9. new text end

new text begin Filing cause of action; limitation. new text end

new text begin (a) The county of financial
responsibility under chapter 256G may bring a cause of action under any or all of the
following:
new text end

new text begin (1) subdivision 1, paragraph (f);
new text end

new text begin (2) subdivision 2, paragraphs (a) and (b);
new text end

new text begin (3) subdivision 3, paragraph (b);
new text end

new text begin (4) subdivision 4, clause (5); and
new text end

new text begin (5) subdivision 8
new text end

new text begin on behalf of the claimant who must be the commissioner.
new text end

new text begin (b) Notwithstanding any other law to the contrary, a cause of action under
subdivision 2, paragraph (a) or (b), or subdivision 8, must be commenced within six years
of the date the local agency determines that a transfer was made for less than fair market
value. Notwithstanding any other law to the contrary, a cause of action under subdivision
3, paragraph (b), or subdivision 4, clause (5), must be commenced within six years of the
date of approval of a waiver of the penalty period for a transfer for less than fair market
value based on undue hardship.
new text end

Sec. 29.

Minnesota Statutes 2006, section 256B.0625, subdivision 3c, is amended to
read:

Subd. 3c.

Health Services Policy Committee.

The commissioner, after receiving
recommendations from professional physician associations, professional associations
representing licensed nonphysician health care professionals, and consumer groups, shall
establish a 13-member Health Services Policy Committee, which consists of 12 voting
members and one nonvoting member. The Health Services Policy Committee shall advise
the commissioner regarding health services pertaining to the administration of health
care benefits covered under the medical assistance, general assistance medical care, and
MinnesotaCare programs. The Health Services Policy Committee shall meet at least
quarterly. The Health Services Policy Committee shall annually elect a physician chair
from among its members, who shall work directly with the commissioner's medical
director, to establish the agenda for each meeting. new text begin The Health Services Policy Committee
shall also recommend criteria for verifying centers of excellence for specific aspects of
medical care where a specific set of combined services, a volume of patients necessary to
maintain a high level of competency, or a specific level of technical capacity is associated
with improved health outcomes.
new text end

Sec. 30.

Minnesota Statutes 2006, section 256B.0625, subdivision 13g, is amended to
read:

Subd. 13g.

Preferred drug list.

(a) The commissioner shall adopt and implement a
preferred drug list by January 1, 2004. The commissioner may enter into a contract with
a vendor deleted text begin or one or more states deleted text end for the purpose of participating in a deleted text begin multistate deleted text end preferred
drug list and supplemental rebate program. The commissioner shall ensure that any
contract meets all federal requirements and maximizes federal financial participation. The
commissioner shall publish the preferred drug list annually in the State Register and shall
maintain an accurate and up-to-date list on the agency Web site.

(b) The commissioner may add to, delete from, and otherwise modify the preferred
drug list, after consulting with the Formulary Committee and appropriate medical
specialists and providing public notice and the opportunity for public comment.

(c) The commissioner shall adopt and administer the preferred drug list as part of the
administration of the supplemental drug rebate program. Reimbursement for prescription
drugs not on the preferred drug list may be subject to prior authorization, unless the drug
manufacturer signs a supplemental rebate contract.

(d) For purposes of this subdivision, "preferred drug list" means a list of prescription
drugs within designated therapeutic classes selected by the commissioner, for which prior
authorization based on the identity of the drug or class is not required.

(e) The commissioner shall seek any federal waivers or approvals necessary to
implement this subdivision.

Sec. 31.

Minnesota Statutes 2006, section 256B.0625, subdivision 13h, is amended to
read:

Subd. 13h.

Medication therapy management services.

(a) Medical assistance
and general assistance medical care cover medication therapy management services for
a recipient taking four or more prescriptions to treat or prevent two or more chronic
medical conditions, or a recipient with a drug therapy problem that is identified or prior
authorized by the commissioner that has resulted or is likely to result in significant
nondrug program costs. The commissioner may cover medical therapy management
services under MinnesotaCare if the commissioner determines this is cost-effective. For
purposes of this subdivision, "medication therapy management" means the provision
of the following pharmaceutical care services by a licensed pharmacist to optimize the
therapeutic outcomes of the patient's medications:

(1) performing or obtaining necessary assessments of the patient's health status;

(2) formulating a medication treatment plan;

(3) monitoring and evaluating the patient's response to therapy, including safety
and effectiveness;

(4) performing a comprehensive medication review to identify, resolve, and prevent
medication-related problems, including adverse drug events;

(5) documenting the care delivered and communicating essential information to
the patient's other primary care providers;

(6) providing verbal education and training designed to enhance patient
understanding and appropriate use of the patient's medications;

(7) providing information, support services, and resources designed to enhance
patient adherence with the patient's therapeutic regimens; and

(8) coordinating and integrating medication therapy management services within the
broader health care management services being provided to the patient.

Nothing in this subdivision shall be construed to expand or modify the scope of practice of
the pharmacist as defined in section 151.01, subdivision 27.

(b) To be eligible for reimbursement for services under this subdivision, a pharmacist
must meet the following requirements:

(1) have a valid license issued under chapter 151;

(2) have graduated from an accredited college of pharmacy on or after May 1996, or
completed a structured and comprehensive education program approved by the Board of
Pharmacy and the American Council of Pharmaceutical Education for the provision and
documentation of pharmaceutical care management services that has both clinical and
didactic elements;

(3) be practicing in an ambulatory care setting as part of a multidisciplinary team or
have developed a structured patient care process that is offered in a private or semiprivate
patient care area that is separate from the commercial business that also occurs in the
setting new text begin , or in home settings, excluding long-term care and group homes, if the service is
ordered by the provider-directed care coordination team new text end ; and

(4) make use of an electronic patient record system that meets state standards.

(c) For purposes of reimbursement for medication therapy management services,
the commissioner may enroll individual pharmacists as medical assistance and general
assistance medical care providers. The commissioner may also establish contact
requirements between the pharmacist and recipient, including limiting the number of
reimbursable consultations per recipient.

(d) The commissioner, after receiving recommendations from professional medical
associations, professional pharmacy associations, and consumer groups, shall convene
an 11-member Medication Therapy Management Advisory Committee to advise
the commissioner on the implementation and administration of medication therapy
management services. The committee shall be comprised of: two licensed physicians;
two licensed pharmacists; two consumer representatives; two health plan company
representatives; and three members with expertise in the area of medication therapy
management, who may be licensed physicians or licensed pharmacists. The committee is
governed by section 15.059, except that committee members do not receive compensation
or reimbursement for expenses. The advisory committee expires on June 30, 2007.

(e) The commissioner shall evaluate the effect of medication therapy management
on quality of care, patient outcomes, and program costs, and shall include a description
of any savings generated in the medical assistance and general assistance medical care
programs that can be attributable to this coverage. The evaluation shall be submitted to
the legislature by December 15, 2007. The commissioner may contract with a vendor
or an academic institution that has expertise in evaluating health care outcomes for the
purpose of completing the evaluation.

Sec. 32.

Minnesota Statutes 2007 Supplement, section 256B.0625, subdivision 49,
is amended to read:

Subd. 49.

Community health worker.

(a) Medical assistance covers the care
coordination and patient education services provided by a community health worker if
the community health worker has:

(1) received a certificate from the Minnesota State Colleges and Universities System
approved community health worker curriculum; or

(2) at least five years of supervised experience with an enrolled physician, registered
nurse, deleted text begin or deleted text end advanced practice registered nurse new text begin , or dentist, or at least five years of supervised
experience by a certified public health nurse operating under the direct authority of an
enrolled unit of government new text end .

Community health workers eligible for payment under clause (2) must complete the
certification program by January 1, 2010, to continue to be eligible for payment.

(b) Community health workers must work under the supervision of a medical
assistance enrolled physician, registered nurse, deleted text begin or deleted text end advanced practice registered nurse new text begin , or
dentist, or work under the supervision of a certified public health nurse operating under
the direct authority of an enrolled unit of government new text end .

new text begin (c) Care coordination and patient education services covered under this subdivision
include, but are not limited to, services relating to oral health and dental care.
new text end

Sec. 33.

Minnesota Statutes 2006, section 256B.075, subdivision 2, is amended to read:

Subd. 2.

Fee-for-service.

(a) The commissioner shall develop and implement
a disease management program for medical assistance and general assistance medical
care recipients who are not enrolled in the prepaid medical assistance or prepaid general
assistance medical care programs and who are receiving services on a fee-for-service basis.
The commissioner may contract with an outside organization to provide these services.

(b) The commissioner shall seek any federal approval necessary to implement this
section and to obtain federal matching funds.

(c) The commissioner shall develop and implement a pilot intensive care
management program for medical assistance children with complex and chronic medical
issues deleted text begin who are not able to participate in the metro-based U Special Kids program due
to geographic distance deleted text end .

Sec. 34.

Minnesota Statutes 2006, section 256B.15, subdivision 4, is amended to read:

Subd. 4.

Other survivors.

new text begin (a) new text end If the decedent who was single or the surviving
spouse of a married couple is survived by one of the following persons, a claim exists
against the estate payable first from the value of the nonhomestead property included in
the estate and the personal representative shall make, execute, and deliver to the county
agency a lien against the homestead property in the estate for any unpaid balance of the
claim to the claimant as provided under this section:

deleted text begin (a) deleted text end new text begin (1) new text end a sibling who resided in the decedent medical assistance recipient's home at
least one year before the decedent's institutionalization and continuously since the date
of institutionalization; or

deleted text begin (b) deleted text end new text begin (2) new text end a son or daughter or a grandchild who resided in the decedent medical
assistance recipient's home for at least two years immediately before the parent's or
grandparent's institutionalization and continuously since the date of institutionalization,
and who establishes by a preponderance of the evidence having provided care to the
parent or grandparent who received medical assistance, that the care was provided before
institutionalization, and that the care permitted the parent or grandparent to reside at
home rather than in an institution.

new text begin (b) For purposes of this subdivision, "institutionalization" means receiving care:
(1) in a nursing facility or swing bed, or intermediate care facility for persons with
developmental disabilities; or (2) through home and community-based services under
section 256B.0915, 256B.092, or 256B.49.
new text end

Sec. 35.

Minnesota Statutes 2006, section 256B.69, subdivision 3a, is amended to read:

Subd. 3a.

County authority.

(a) The commissioner, when implementing the general
assistance medical care, or medical assistance prepayment program within a county,
must include the county board in the process of development, approval, and issuance of
the request for proposals to provide services to eligible individuals within the proposed
county. County boards must be given reasonable opportunity to make recommendations
regarding the development, issuance, review of responses, and changes needed in the
request for proposals. The commissioner must provide county boards the opportunity to
review each proposal based on the identification of community needs under chapters 145A
and 256E and county advocacy activities. If a county board finds that a proposal does not
address certain community needs, the county board and commissioner shall continue
efforts for improving the proposal and network prior to the approval of the contract. The
county board shall make recommendations regarding the approval of local networks
and their operations to ensure adequate availability and access to covered services. The
provider or health plan must respond directly to county advocates and the state prepaid
medical assistance ombudsperson regarding service delivery and must be accountable to
the state regarding contracts with medical assistance and general assistance medical care
funds. The county board may recommend a maximum number of participating health
plans after considering the size of the enrolling population; ensuring adequate access and
capacity; considering the client and county administrative complexity; and considering
the need to promote the viability of locally developed health plans. The county board
or a single entity representing a group of county boards and the commissioner shall
mutually select health plans for participation at the time of initial implementation of the
prepaid medical assistance program in that county or group of counties and at the time
of contract renewal. The commissioner shall also seek input for contract requirements
from the county or single entity representing a group of county boards at each contract
renewal and incorporate those recommendations into the contract negotiation process.
deleted text begin The commissioner, in conjunction with the county board, shall actively seek to develop
a mutually agreeable timetable prior to the development of the request for proposal, but
counties must agree to initial enrollment beginning on or before January 1, 1999, in
either the prepaid medical assistance and general assistance medical care programs or
county-based purchasing under section 256B.692. At least 90 days before enrollment in
the medical assistance and general assistance medical care prepaid programs begins in
a county in which the prepaid programs have not been established, the commissioner
shall provide a report to the chairs of senate and house committees having jurisdiction
over state health care programs which verifies that the commissioner complied with the
requirements for county involvement that are specified in this subdivision. deleted text end

(b) At the option of the county board, the board may develop contract requirements
related to the achievement of local public health goals to meet the health needs of medical
assistance and general assistance medical care enrollees. These requirements must be
reasonably related to the performance of health plan functions and within the scope of the
medical assistance and general assistance medical care benefit sets. If the county board
and the commissioner mutually agree to such requirements, the department shall include
such requirements in all health plan contracts governing the prepaid medical assistance
and general assistance medical care programs in that county at initial implementation of
the program in that county and at the time of contract renewal. The county board may
participate in the enforcement of the contract provisions related to local public health goals.

(c) For counties in which prepaid medical assistance and general assistance medical
care programs have not been established, the commissioner shall not implement those
programs if a county board submits acceptable and timely preliminary and final proposals
under section 256B.692, until county-based purchasing is no longer operational in that
county. For counties in which prepaid medical assistance and general assistance medical
care programs are in existence on or after September 1, 1997, the commissioner must
terminate contracts with health plans according to section 256B.692, subdivision 5, if
the county board submits and the commissioner accepts preliminary and final proposals
according to that subdivision. The commissioner is not required to terminate contracts that
begin on or after September 1, 1997, according to section 256B.692 until two years have
elapsed from the date of initial enrollment.

(d) In the event that a county board or a single entity representing a group of county
boards and the commissioner cannot reach agreement regarding: (i) the selection of
participating health plans in that county; (ii) contract requirements; or (iii) implementation
and enforcement of county requirements including provisions regarding local public
health goals, the commissioner shall resolve all disputes after taking into account the
recommendations of a three-person mediation panel. The panel shall be composed of one
designee of the president of the association of Minnesota counties, one designee of the
commissioner of human services, and one deleted text begin designee of the commissioner of health deleted text end new text begin person
selected jointly by the designee of the commissioner of human services and the designee
of the Association of Minnesota Counties. Within a reasonable period of time before
the hearing the panelists must be provided all documents and information relevant to
the mediation. The parties to the mediation must be given 30 days' notice of a hearing
before the mediation panel new text end .

(e) If a county which elects to implement county-based purchasing ceases to
implement county-based purchasing, it is prohibited from assuming the responsibility of
county-based purchasing for a period of five years from the date it discontinues purchasing.

deleted text begin (f) Notwithstanding the requirement in this subdivision that a county must agree to
initial enrollment on or before January 1, 1999, the commissioner shall grant a delay in
the implementation of the county-based purchasing authorized in section 256B.692 until
federal waiver authority and approval has been granted, if the county or group of counties
has submitted a preliminary proposal for county-based purchasing by September 1, 1997,
has not already implemented the prepaid medical assistance program before January 1,
1998, and has submitted a written request for the delay to the commissioner by July
1, 1998. In order for the delay to be continued, the county or group of counties must
also submit to the commissioner the following information by December 1, 1998. The
information must:
deleted text end

deleted text begin (1) identify the proposed date of implementation, as determined under section
256B.692, subdivision 5;
deleted text end

deleted text begin (2) include copies of the county board resolutions which demonstrate the continued
commitment to the implementation of county-based purchasing by the proposed date.
County board authorization may remain contingent on the submission of a final proposal
which meets the requirements of section 256B.692, subdivision 5, paragraph (b);
deleted text end

deleted text begin (3) demonstrate actions taken for the establishment of a governance structure
between the participating counties and describe how the fiduciary responsibilities of
county-based purchasing will be allocated between the counties, if more than one county
is involved in the proposal;
deleted text end

deleted text begin (4) describe how the risk of a deficit will be managed in the event expenditures are
greater than total capitation payments. This description must identify how any of the
following strategies will be used:
deleted text end

deleted text begin (i) risk contracts with licensed health plans;
deleted text end

deleted text begin (ii) risk arrangements with providers who are not licensed health plans;
deleted text end

deleted text begin (iii) risk arrangements with other licensed insurance entities; and
deleted text end

deleted text begin (iv) funding from other county resources;
deleted text end

deleted text begin (5) include, if county-based purchasing will not contract with licensed health plans
or provider networks, letters of interest from local providers in at least the categories of
hospital, physician, mental health, and pharmacy which express interest in contracting
for services. These letters must recognize any risk transfer identified in clause (4), item
(ii); and
deleted text end

deleted text begin (6) describe the options being considered to obtain the administrative services
required in section 256B.692, subdivision 3, clauses (3) and (5).
deleted text end

deleted text begin (g) For counties which receive a delay under this subdivision, the final proposals
required under section 256B.692, subdivision 5, paragraph (b), must be submitted at
least six months prior to the requested implementation date. Authority to implement
county-based purchasing remains contingent on approval of the final proposal as required
under section 256B.692.
deleted text end

deleted text begin (h) If the commissioner is unable to provide county-specific, individual-level
fee-for-service claims to counties by June 4, 1998, the commissioner shall grant a delay
under paragraph (f) of up to 12 months in the implementation of county-based purchasing,
and shall require implementation not later than January 1, 2000. In order to receive an
extension of the proposed date of implementation under this paragraph, a county or group
of counties must submit a written request for the extension to the commissioner by August
1, 1998, must submit the information required under paragraph (f) by December 1, 1998,
and must submit a final proposal as provided under paragraph (g).
deleted text end

deleted text begin (i) Notwithstanding other requirements of this subdivision, the commissioner
shall not require the implementation of the county-based purchasing authorized in
section 256B.692 until six months after federal waiver approval has been obtained for
county-based purchasing, if the county or counties have submitted the final plan as
required in section 256B.692, subdivision 5. The commissioner shall allow the county or
counties which submitted information under section 256B.692, subdivision 5, to submit
supplemental or additional information which was not possible to submit by April 1, 1999.
A county or counties shall continue to submit the required information and substantive
detail necessary to obtain a prompt response and waiver approval. If amendments to
the final plan are necessary due to the terms and conditions of the waiver approval, the
commissioner shall allow the county or group of counties 60 days to make the necessary
amendments to the final plan and shall not require implementation of the county-based
purchasing until six months after the revised final plan has been submitted.
deleted text end

new text begin (f) The commissioner shall not require that contractual disputes between
county-based purchasing entities and the commissioner be mediated by a panel that
includes a representative of the Minnesota Council of Health Plans.
new text end

new text begin (g) At the request of a county-purchasing entity, the commissioner shall adopt a
contract reprocurement or renewal schedule under which all counties included in the
entity's service area are reprocured or renewed at the same time.
new text end

new text begin (h) The commissioner shall provide a written report under section 3.195 to the chairs
of the legislative committees having jurisdiction over human services in the senate and the
house of representatives describing in detail the activities undertaken by the commissioner
to ensure full compliance with this section. The report must also provide an explanation
for any decisions of the commissioner not to accept the recommendations of a county or
group of counties required to be consulted under this section. The report must be provided
at least 30 days prior to the effective date of a new or renewed prepaid or managed care
contract in a county.
new text end

Sec. 36.

Minnesota Statutes 2006, section 256B.69, subdivision 6, is amended to read:

Subd. 6.

Service delivery.

(a) Each demonstration provider shall be responsible for
the health care coordination for eligible individuals. Demonstration providers:

(1) shall authorize and arrange for the provision of all needed health services
including but not limited to the full range of services listed in sections 256B.02,
subdivision 8, and 256B.0625 in order to ensure appropriate health care is delivered
to enrollees new text begin ; notwithstanding section 256B.0621, demonstration providers that provide
nursing home and community-based services under this section shall provide relocation
service coordination to enrolled persons age 65 and over new text end ;

(2) shall accept the prospective, per capita payment from the commissioner in return
for the provision of comprehensive and coordinated health care services for eligible
individuals enrolled in the program;

(3) may contract with other health care and social service practitioners to provide
services to enrollees; and

(4) shall institute recipient grievance procedures according to the method established
by the project, utilizing applicable requirements of chapter 62D. Disputes not resolved
through this process shall be appealable to the commissioner as provided in subdivision 11.

(b) Demonstration providers must comply with the standards for claims settlement
under section 72A.201, subdivisions 4, 5, 7, and 8, when contracting with other health
care and social service practitioners to provide services to enrollees. A demonstration
provider must pay a clean claim, as defined in Code of Federal Regulations, title 42,
section 447.45(b), within 30 business days of the date of acceptance of the claim.

Sec. 37.

Minnesota Statutes 2006, section 256B.69, subdivision 27, is amended to read:

Subd. 27.

Information for persons with limited English-language proficiency.

Managed care contracts entered into under this section and sections 256D.03, subdivision
4, paragraph (c), and 256L.12 must require demonstration providers to deleted text begin inform enrollees
that upon request the enrollee can obtain a certificate of coverage in the following
languages: Spanish, Hmong, Laotian, Russian, Somali, Vietnamese, or Cambodian.
Upon request, the demonstration provider must provide the enrollee with a certificate of
coverage in the specified language of preference deleted text end new text begin provide language assistance to enrollees
that ensures meaningful access to its programs and services according to Title VI of the
Civil Rights Act and federal regulations adopted under that law or any guidance from the
United States Department of Health and Human Services new text end .

Sec. 38.

Minnesota Statutes 2006, section 256B.692, subdivision 7, is amended to read:

Subd. 7.

Dispute resolution.

In the event the commissioner rejects a proposal
under subdivision 6, the county board may request the recommendation of a three-person
mediation panel. The commissioner shall resolve all disputes after taking into account the
recommendations of the mediation panel. The panel shall be composed of one designee of
the president of the Association of Minnesota Counties, one designee of the commissioner
of human services, and one deleted text begin designee of the commissioner of health deleted text end new text begin person selected jointly
by the designee of the commissioner of human services and the designee of the Association
of Minnesota Counties. Within a reasonable period of time before the hearing the panelists
must be provided all documents and information relevant to the mediation. The parties to
the mediation must be given 30 days' notice of a hearing before the mediation panel new text end .

Sec. 39.

Minnesota Statutes 2007 Supplement, section 256D.03, subdivision 3, is
amended to read:

Subd. 3.

General assistance medical care; eligibility.

(a) General assistance
medical care may be paid for any person who is not eligible for medical assistance under
chapter 256B, including eligibility for medical assistance based on a spenddown of excess
income according to section 256B.056, subdivision 5, or MinnesotaCare as defined in
paragraph (b), except as provided in paragraph (c), and:

(1) who is receiving assistance under section 256D.05, except for families with
children who are eligible under Minnesota family investment program (MFIP), or who is
having a payment made on the person's behalf under sections 256I.01 to 256I.06; or

(2) who is a resident of Minnesota; and

(i) who has gross countable income not in excess of 75 percent of the federal poverty
guidelines for the family size, using a six-month budget period and whose equity in assets
is not in excess of $1,000 per assistance unit. General assistance medical care is not
available for applicants or enrollees who are otherwise eligible for medical assistance but
fail to verify their assets. Enrollees who become eligible for medical assistance shall be
terminated and transferred to medical assistance. Exempt assets, the reduction of excess
assets, and the waiver of excess assets must conform to the medical assistance program in
section 256B.056, subdivision 3, with the following exception: the maximum amount of
undistributed funds in a trust that could be distributed to or on behalf of the beneficiary by
the trustee, assuming the full exercise of the trustee's discretion under the terms of the
trust, must be applied toward the asset maximum;

(ii) who has gross countable income above 75 percent of the federal poverty
guidelines but not in excess of 175 percent of the federal poverty guidelines for the
family size, using a six-month budget period, whose equity in assets is not in excess
of the limits in section 256B.056, subdivision 3c, and who applies during an inpatient
hospitalization; or

(iii) the commissioner shall adjust the income standards under this section each July
1 by the annual update of the federal poverty guidelines following publication by the
United States Department of Health and Human Services.

(b) Effective for applications and renewals processed on or after September 1, 2006,
general assistance medical care may not be paid for applicants or recipients who are adults
with dependent children under 21 whose gross family income is equal to or less than 275
percent of the federal poverty guidelines who are not described in paragraph (e).

(c) Effective for applications and renewals processed on or after September 1, 2006,
general assistance medical care may be paid for applicants and recipients who meet all
eligibility requirements of paragraph (a), clause (2), item (i), for a temporary period
beginning the date of application. Immediately following approval of general assistance
medical care, enrollees shall be enrolled in MinnesotaCare under section 256L.04,
subdivision 7, with covered services as provided in section 256L.03 for the rest of the
six-month general assistance medical care eligibility period, until their six-month renewal.

(d) To be eligible for general assistance medical care following enrollment in
MinnesotaCare as required by paragraph (c), an individual must complete a new
application.

(e) Applicants and recipients eligible under paragraph (a), clause (1) deleted text begin ; who deleted text end new text begin , are
exempt from the MinnesotaCare enrollment requirements in this subdivision if they:
new text end

new text begin (1) new text end have applied for and are awaiting a determination of blindness or disability by
the state medical review team or a determination of eligibility for Supplemental Security
Income or Social Security Disability Insurance by the Social Security Administration; deleted text begin who
deleted text end

new text begin (2) new text end fail to meet the requirements of section 256L.09, subdivision 2; deleted text begin who
deleted text end

new text begin (3) new text end are homeless as defined by United States Code, title 42, section 11301, et seq.;
deleted text begin who
deleted text end

new text begin (4) new text end are classified as end-stage renal disease beneficiaries in the Medicare program;
deleted text begin who
deleted text end

new text begin (5) new text end are enrolled in private health care coverage as defined in section 256B.02,
subdivision 9; deleted text begin who
deleted text end

new text begin (6) new text end are eligible under paragraph (j); deleted text begin or who
deleted text end

new text begin (7) new text end receive treatment funded pursuant to section 254B.02 deleted text begin are exempt from the
MinnesotaCare enrollment requirements of this subdivision deleted text end new text begin ; or
new text end

new text begin (8) reside in the Minnesota sex offender program defined in chapter 246B new text end .

(f) For applications received on or after October 1, 2003, eligibility may begin no
earlier than the date of application. For individuals eligible under paragraph (a), clause
(2), item (i), a redetermination of eligibility must occur every 12 months. Individuals are
eligible under paragraph (a), clause (2), item (ii), only during inpatient hospitalization but
may reapply if there is a subsequent period of inpatient hospitalization.

(g) Beginning September 1, 2006, Minnesota health care program applications and
renewals completed by recipients and applicants who are persons described in paragraph
(c) and submitted to the county agency shall be determined for MinnesotaCare eligibility
by the county agency. If all other eligibility requirements of this subdivision are met,
eligibility for general assistance medical care shall be available in any month during which
MinnesotaCare enrollment is pending. Upon notification of eligibility for MinnesotaCare,
notice of termination for eligibility for general assistance medical care shall be sent to
an applicant or recipient. If all other eligibility requirements of this subdivision are
met, eligibility for general assistance medical care shall be available until enrollment in
MinnesotaCare subject to the provisions of paragraphs (c), (e), and (f).

(h) The date of an initial Minnesota health care program application necessary to
begin a determination of eligibility shall be the date the applicant has provided a name,
address, and Social Security number, signed and dated, to the county agency or the
Department of Human Services. If the applicant is unable to provide a name, address,
Social Security number, and signature when health care is delivered due to a medical
condition or disability, a health care provider may act on an applicant's behalf to establish
the date of an initial Minnesota health care program application by providing the county
agency or Department of Human Services with provider identification and a temporary
unique identifier for the applicant. The applicant must complete the remainder of the
application and provide necessary verification before eligibility can be determined. The
county agency must assist the applicant in obtaining verification if necessary.

(i) County agencies are authorized to use all automated databases containing
information regarding recipients' or applicants' income in order to determine eligibility for
general assistance medical care or MinnesotaCare. Such use shall be considered sufficient
in order to determine eligibility and premium payments by the county agency.

(j) General assistance medical care is not available for a person in a correctional
facility unless the person is detained by law for less than one year in a county correctional
or detention facility as a person accused or convicted of a crime, or admitted as an
inpatient to a hospital on a criminal hold order, and the person is a recipient of general
assistance medical care at the time the person is detained by law or admitted on a criminal
hold order and as long as the person continues to meet other eligibility requirements
of this subdivision.

(k) General assistance medical care is not available for applicants or recipients who
do not cooperate with the county agency to meet the requirements of medical assistance.

(l) In determining the amount of assets of an individual eligible under paragraph
(a), clause (2), item (i), there shall be included any asset or interest in an asset, including
an asset excluded under paragraph (a), that was given away, sold, or disposed of for
less than fair market value within the 60 months preceding application for general
assistance medical care or during the period of eligibility. Any transfer described in this
paragraph shall be presumed to have been for the purpose of establishing eligibility for
general assistance medical care, unless the individual furnishes convincing evidence to
establish that the transaction was exclusively for another purpose. For purposes of this
paragraph, the value of the asset or interest shall be the fair market value at the time it
was given away, sold, or disposed of, less the amount of compensation received. For any
uncompensated transfer, the number of months of ineligibility, including partial months,
shall be calculated by dividing the uncompensated transfer amount by the average monthly
per person payment made by the medical assistance program to skilled nursing facilities
for the previous calendar year. The individual shall remain ineligible until this fixed period
has expired. The period of ineligibility may exceed 30 months, and a reapplication for
benefits after 30 months from the date of the transfer shall not result in eligibility unless
and until the period of ineligibility has expired. The period of ineligibility begins in the
month the transfer was reported to the county agency, or if the transfer was not reported,
the month in which the county agency discovered the transfer, whichever comes first. For
applicants, the period of ineligibility begins on the date of the first approved application.

(m) When determining eligibility for any state benefits under this subdivision,
the income and resources of all noncitizens shall be deemed to include their sponsor's
income and resources as defined in the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996, title IV, Public Law 104-193, sections 421 and 422, and
subsequently set out in federal rules.

(n) Undocumented noncitizens and nonimmigrants are ineligible for general
assistance medical care. For purposes of this subdivision, a nonimmigrant is an individual
in one or more of the classes listed in United States Code, title 8, section 1101(a)(15), and
an undocumented noncitizen is an individual who resides in the United States without the
approval or acquiescence of the United States Citizenship and Immigration Services.

(o) Notwithstanding any other provision of law, a noncitizen who is ineligible for
medical assistance due to the deeming of a sponsor's income and resources, is ineligible
for general assistance medical care.

(p) Effective July 1, 2003, general assistance medical care emergency services end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 40.

Minnesota Statutes 2006, section 524.3-803, is amended to read:

524.3-803 LIMITATIONS ON PRESENTATION OF CLAIMS.

(a) All claims as defined in section 524.1-201(6), against a decedent's estate which
arose before the death of the decedent, including claims of the state and any subdivision
thereof, whether due or to become due, absolute or contingent, liquidated or unliquidated,
if not barred earlier by other statute of limitations, are barred against the estate, the personal
representative, and the heirs and devisees of the decedent, unless presented as follows:

(1) in the case of a creditor who is only entitled, under the United States Constitution
and under the Minnesota Constitution, to notice by publication under section 524.3-801,
within four months after the date of the court administrator's notice to creditors which
is subsequently published pursuant to section 524.3-801;

(2) in the case of a creditor who was served with notice under section 524.3-801(c),
within the later to expire of four months after the date of the first publication of notice to
creditors or one month after the service;

(3) within the later to expire of one year after the decedent's death, or one year after
June 16, 1989, whether or not notice to creditors has been published or served under
section 524.3-801, provided, however, that in the case of a decedent who died before June
16, 1989, no claim which was then barred by any provision of law may be deemed to have
been revived by the amendment of this section. new text begin Claims authorized by section 246.53,
256B.15, or 256D.16 must not be barred after one year as provided in this clause.
new text end

(b) All claims against a decedent's estate which arise at or after the death of the
decedent, including claims of the state and any subdivision thereof, whether due or to
become due, absolute or contingent, liquidated or unliquidated, are barred against the
estate, the personal representative, and the heirs and devisees of the decedent, unless
presented as follows:

(1) a claim based on a contract with the personal representative, within four months
after performance by the personal representative is due;

(2) any other claim, within four months after it arises.

(c) Nothing in this section affects or prevents:

(1) any proceeding to enforce any mortgage, pledge, or other lien upon property
of the estate;

(2) any proceeding to establish liability of the decedent or the personal representative
for which there is protection by liability insurance, to the limits of the insurance protection
only;

(3) the presentment and payment at any time within one year after the decedent's
death of any claim arising before the death of the decedent that is referred to in section
524.3-715, clause (18), although the same may be otherwise barred under this section; or

(4) the presentment and payment at any time before a petition is filed in compliance
with section 524.3-1001 or 524.3-1002 or a closing statement is filed under section
524.3-1003, of:

(i) any claim arising after the death of the decedent that is referred to in section
524.3-715, clause (18), although the same may be otherwise barred hereunder;

(ii) any other claim, including claims subject to clause (3), which would otherwise be
barred hereunder, upon allowance by the court upon petition of the personal representative
or the claimant for cause shown on notice and hearing as the court may direct.

Sec. 41.

Laws 2005, First Special Session chapter 4, article 8, section 84, as amended
by Laws 2006, chapter 264, section 15, is amended to read:

Sec. 84. deleted text begin SOLE-SOURCE OR deleted text end SINGLE-PLAN MANAGED CARE
CONTRACT.

new text begin (a) new text end Notwithstanding Minnesota Statutes, section 256B.692, subdivision 6, clause
(1), paragraph (c), the commissioner of human services shall approve a county-based
purchasing health plan proposal, submitted on behalf of Cass, Crow Wing, Morrison,
Todd, and Wadena Counties, that requires county-based purchasing on a single-plan basis
contract if the implementation of the single-plan purchasing proposal does not limit an
enrollee's provider choice or access to services and all other requirements applicable to
health plan purchasing are satisfied. deleted text begin The commissioner shall continue single health plan
purchasing arrangements with county-based purchasing entities in the service areas in
existence on May 1, 2006, including arrangements for which a proposal was submitted by
May 1, 2006, on behalf of Cass, Crow Wing, Morrison, Todd, and Wadena Counties, in
response to a request for proposals issued by the commissioner deleted text end new text begin The commissioner shall
continue to use single-health plan, county-based purchasing arrangements for medical
assistance and general assistance medical care managed care programs and products for
the counties that were in single-health plan, county-based purchasing arrangements on
March 1, 2008. This paragraph does not require the commissioner to terminate an existing
contract with a noncounty-based purchasing health plan that had enrollment in a medical
assistance program or product in these counties on March 1, 2008. This paragraph expires
on December 31, 2010, or the effective date of new contracts for medical assistance and
general assistance medical care managed care programs entered into at the conclusion of
the commissioner's next scheduled reprocurement process for the county-based purchasing
entities covered by this paragraph, whichever is later new text end .

new text begin (b) new text end The commissioner shall consider, and may approve, contracting on a
single-health plan basis with new text begin other new text end county-based purchasing plans, or with other qualified
health plans that have coordination arrangements with counties, to serve persons with a
disability who voluntarily enroll, in order to promote better coordination or integration of
health care services, social services and other community-based services, provided that all
requirements applicable to health plan purchasing, including those in Minnesota Statutes,
section 256B.69, subdivision 23, are satisfied. deleted text begin By January 15, 2007, the commissioner
shall report to the chairs of the appropriate legislative committees in the house and senate
an analysis of the advantages and disadvantages of using single-health plan purchasing
to serve persons with a disability who are eligible for health care programs. The report
shall include consideration of the impact of federal health care programs and policies
for persons who are eligible for both federal and state health care programs and shall
consider strategies to improve coordination between federal and state health care programs
for those persons deleted text end new text begin Nothing in this paragraph supersedes or modifies the requirements in
paragraph (a) new text end .

Sec. 42. new text begin NURSING FACILITY PENSION COSTS.
new text end

new text begin The commissioner of human services shall evaluate the extent to which the
alternative payment system reimbursement methodology for pension costs leads to
funding shortfalls for nursing facilities that convert from public to private ownership. The
commissioner shall report to the legislature by January 15, 2009, recommendations for
any changes to the alternative payment system reimbursement methodology for pension
costs necessary to ensure the financial viability of nursing facilities. The commissioner
shall pay for any costs related to this study using existing resources.
new text end

Sec. 43. new text begin NURSING FACILITY RATE DISPARITY REPORT.
new text end

new text begin The commissioner of human services shall study and report to the legislature by
January 15, 2009, with recommendations to reduce rate disparities between nursing
facilities in various regions of the state. The recommendations shall include cost estimates
and may include a phase-in schedule. The study shall be accomplished using existing
resources.
new text end

Sec. 44. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall codify section 41 as a new subdivision of Minnesota
Statutes, section 256B.692.
new text end

Sec. 45. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2006, section 256B.0571, subdivision 8a, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Laws 2003, First Special Session chapter 5, section 11, new text end new text begin is repealed.
new text end

ARTICLE 2

MINNESOTA SEX OFFENDER PROGRAM

Section 1.

Minnesota Statutes 2006, section 13.851, is amended by adding a
subdivision to read:

new text begin Subd. 9. new text end

new text begin Civil commitment of sexual offenders. new text end

new text begin Data relating to the preparation
of a petition to commit an individual as a sexual psychopathic personality or sexually
dangerous person is governed by section 253B.185, subdivision 1b.
new text end

Sec. 2.

Minnesota Statutes 2006, section 246B.02, is amended to read:

246B.02 ESTABLISHMENT OF MINNESOTA SEX OFFENDER PROGRAM.

The commissioner of human services shall establish and maintain a secure facility
located in Moose Lake. The facility shall be operated by the Minnesota sex offender
program. The program shall provide care and treatment in secure treatment facilities
to persons new text begin on a court-hold order and residing in a secure treatment facility or program
pending commitment or new text end committed by the courts as sexual psychopathic personalities
or sexually dangerous persons deleted text begin , or persons admitted there with the consent of the
commissioner of human services deleted text end .

Sec. 3.

new text begin [246B.06] ESTABLISHMENT OF MINNESOTA STATE INDUSTRIES.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin (a) The commissioner of human
services may establish, equip, maintain, and operate the Minnesota State Industries at
any Minnesota sex offender program facility under this chapter. The commissioner
may establish industrial and commercial activities for sex offender treatment patients
as the commissioner deems necessary and suitable to the profitable employment,
educational training, and development of proper work habits of patients consistent with
the requirements in section 246B.05. The industrial and commercial activities authorized
by this section are designated Minnesota State Industries and must be for the primary
purpose of sustaining and ensuring Minnesota State Industries' self-sufficiency, providing
educational training, meaningful employment, and the teaching of proper work habits to
the patients of the Minnesota sex offender program under this chapter, and not solely as
competitive business ventures.
new text end

new text begin (b) The net profits from Minnesota State Industries must be used for the benefit
of the patients as it relates to building education and self-sufficiency skills. Prior to
the establishment of any industrial and commercial activity, the commissioner of
human services may consult with stakeholders including representatives of business,
industry, organized labor, the commissioner of education, the state Apprenticeship
Council, the commissioner of labor and industry, the commissioner of employment and
economic development, the commissioner of administration, and other stakeholders the
commissioner deems qualified. The purpose of the stakeholder consultation is to determine
the quantity and nature of the goods, wares, merchandise, and services to be made or
provided, and the types of processes to be used in their manufacture, processing, repair,
and production consistent with the greatest opportunity for the reform and educational
training of the patients, and with the best interests of the state, business, industry, and labor.
new text end

new text begin (c) The commissioner of human services shall, at all times in the conduct of any
industrial or commercial activity authorized by this section, utilize patient labor to the
greatest extent feasible, provided that the commissioner may employ all administrative,
supervisory, and other skilled workers necessary to the proper instruction of the patients
and the profitable and efficient operation of the industrial and commercial activities
authorized by this section.
new text end

new text begin (d) The commissioner of human services may authorize the director of any
Minnesota sex offender treatment facility under the commissioner's control to accept
work projects from outside sources for processing, fabrication, or repair, provided that
preference is given to the performance of work projects for state departments and agencies.
new text end

new text begin Subd. 2. new text end

new text begin Revolving fund. new text end

new text begin As described in section 246B.05, subdivision 2, there
is established a Minnesota State Industries revolving fund under the control of the
commissioner of human services. The revolving fund must be used for Minnesota State
Industries authorized under this section, including, but not limited to, the purchase of
equipment and raw materials, the payment of salaries and wages, and other necessary
expenses as determined by the commissioner of human services. The purchase of
services, materials, and commodities used in and held for resale are not subject to the
competitive bidding procedures of section 16C.06, but are subject to all other provisions
of chapters 16B and 16C. When practical, purchases must be made from small targeted
group businesses designated under section 16C.16. Additionally, the expenses of patient
educational training and self-sufficiency skills may be financed from the revolving fund
in an amount to be determined by the commissioner or designee. The proceeds and
income from all Minnesota State Industries conducted at the Minnesota sex offender
treatment facilities must be deposited in the revolving fund subject to disbursement under
subdivision 3. The commissioner of human services may request that money in the fund
be invested pursuant to section 11A.25. Proceeds from the investment not currently
needed must be accounted for separately and credited to the revolving fund.
new text end

new text begin Subd. 3. new text end

new text begin Disbursement from fund. new text end

new text begin The Minnesota State Industries revolving
fund must be deposited in the state treasury and paid out only on proper vouchers as
authorized and approved by the commissioner of human services, and in the same manner
and under the same restrictions as are now provided by law for the disbursement of funds
by the commissioner. An amount deposited in the state treasury equal to six months
of net operating cash as determined by the prior 12 months of revenue and cash flow
statements must be restricted for use only by Minnesota State Industries as described
under subdivision 2. For purposes of this subdivision, "net operating cash" means net
income, minus sales, plus cost of goods sold. Cost of goods sold include all direct costs
of industry products attributable to the goods' production.
new text end

new text begin Subd. 4. new text end

new text begin Revolving fund; borrowing. new text end

new text begin The commissioner of human services is
authorized to borrow sums of money as the commissioner deems necessary to meet
current demands on the Minnesota State Industries revolving fund. The sums borrowed
must not exceed, in any calendar year, six months of net operating cash as determined
by the previous 12 months of the industries' revenue and cash flow statements. If the
commissioner of human services determines that borrowing of funds is necessary, the
commissioner of human services shall certify this need to the commissioner of finance.
Funds may be borrowed from general fund appropriations to the Minnesota sex offender
program with the authorization of the commissioner of finance. Upon authorization of the
commissioner of finance, the transfer must be made and credited to the Minnesota State
Industries revolving fund. The sum transferred to the Minnesota State Industries revolving
fund must be repaid by the commissioner of human services from the revolving fund to
the fund from which it was transferred in a time period specified by the commissioner
of finance, but by no later than the end of the biennium, as defined in section 16A.011,
in which the loan is made. When any transfer is made to the Minnesota State Industries
revolving fund, the commissioner of finance shall notify the commissioner of human
services of the amount transferred to the fund and the date the transfer is to be repaid.
new text end

new text begin Subd. 5. new text end

new text begin Federal grant fund transfers. new text end

new text begin Grants received by the commissioner of
human services from the federal government for any vocational training program or for
administration by the commissioner of human services must (1) be credited to a federal
grant fund and then (2) be transferred from the federal grant fund to the credit of the
commissioner of human services in the appropriate account upon certification by the
commissioner of human services that the amounts requested to be transferred have been
earned or are required for the purposes of this section. Funds received by the federal
grant fund need not be budgeted as such, provided transfers from the fund are budgeted
for allotment purposes in the appropriate appropriation.
new text end

new text begin Subd. 6. new text end

new text begin Wages. new text end

new text begin Notwithstanding section 177.24 or any other law to the
contrary, wages paid to patients working within this program are at the discretion of the
commissioner of human services.
new text end

Sec. 4.

Minnesota Statutes 2006, section 253B.045, subdivision 1, is amended to read:

Subdivision 1.

Restriction.

Except when ordered by the court pursuant to a finding
of necessity to protect the life of the proposed patient or others, new text begin or as provided under
subdivision 1a, new text end no person subject to the provisions of this chapter shall be confined in a
jail or correctional institution, except pursuant to chapter 242 or 244.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2006, section 253B.045, is amended by adding a
subdivision to read:

new text begin Subd. 1a. new text end

new text begin Exception. new text end

new text begin A person who is being petitioned for commitment
under section 253B.185 and who is placed under a judicial hold order under section
253B.07, subdivision 2b or 7, may be confined at a Department of Corrections or a
county correctional or detention facility, rather than a secure treatment facility, until a
determination of the commitment petition as specified in this subdivision.
new text end

new text begin (a) A court may order that a person who is being petitioned for commitment under
section 253B.185 be confined in a Department of Corrections facility pursuant to the
judicial hold order under the following circumstances and conditions:
new text end

new text begin (1) the person is currently serving a sentence in a Department of Corrections facility
and the court determines that the person has made a knowing and voluntary: (i) waiver
of the right to be held in a secure treatment facility; and (ii) election to be held in a
Department of Corrections facility. The order confining the person in the Department of
Corrections facility shall remain in effect until the court vacates the order or the person's
criminal sentence and conditional release term expire. In no case may the person be held
in a Department of Corrections facility pursuant only to this subdivision, and not pursuant
to any separate correctional authority, for more than 210 days;
new text end

new text begin (2) a person who has elected to be confined in a Department of Corrections facility
under this subdivision may revoke the election by filing a written notice of intent to revoke
the election with the court and serving the notice upon the Department of Corrections and
the county attorney. The court shall order the person transferred to a secure treatment
facility within 15 days of the date that the notice of revocation was filed with the court,
except that, if the person has additional time to serve in prison at the end of the 15-day
period, the person shall not be transferred to a secure treatment facility until the person's
prison term expires. After a person has revoked an election to remain in a Department of
Corrections facility under this subdivision, the court may not adopt another election to
remain in a Department of Corrections facility without the agreement of both parties and
the Department of Corrections;
new text end

new text begin (3) upon petition by the commissioner of corrections, after notice to the parties
and opportunity for hearing and for good cause shown, the court may order that the
person's place of confinement be changed from the Department of Corrections to a secure
treatment facility;
new text end

new text begin (4) while at a Department of Corrections facility pursuant to this subdivision, the
person shall remain subject to all rules and practices applicable to correctional inmates in
the facility in which the person is placed, including, but not limited to, the powers and
duties of the commissioner of corrections under section 241.01, powers relating to the
use of force under section 243.52, and the right of the commissioner of corrections to
determine the place of confinement in a prison, reformatory, or other facility;
new text end

new text begin (5) a person may not be confined in a Department of Corrections facility under this
provision beyond the end of the person's executed sentence or the end of any applicable
conditional release period, whichever is later. If a person confined in a Department of
Corrections facility pursuant to this provision reaches the person's supervised release
date and is subject to a period of conditional release, the period of conditional release
shall commence on the supervised release date even though the person remains in the
Department of Corrections facility pursuant to this provision. At the end of the later of
the executed sentence or any applicable conditional release period, the person shall be
transferred to a secure treatment facility; and
new text end

new text begin (6) nothing in this section may be construed to establish a right of an inmate in a
state correctional facility to participate in sex offender treatment. This section must be
construed in a manner consistent with the provisions of section 244.03.
new text end

new text begin (b) The committing county may offer a person who is being petitioned for
commitment under section 253B.185, and who is placed under a judicial hold order under
section 253B.07, subdivision 2b or 7, the option to be held in a county correctional or
detention facility rather than a secure treatment facility, under such terms as may be agreed
to by the county, the commitment petitioner, and the commitment respondent. If a person
makes such an election under this paragraph, the court-hold order shall specify the terms
of the agreement, including the conditions for revoking the election.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2006, section 253B.045, subdivision 2, is amended to read:

Subd. 2.

Facilities.

Each county or a group of counties shall maintain or provide
by contract a facility for confinement of persons held temporarily for observation,
evaluation, diagnosis, treatment, and care. When the temporary confinement is provided
at a regional treatment center, the commissioner shall charge the county of financial
responsibility for the costs of confinement of persons hospitalized under section 253B.05,
subdivisions 1 and 2, and section 253B.07, subdivision 2b, except that the commissioner
shall bill the responsible health plan first. If the person has health plan coverage, but the
hospitalization does not meet the criteria in subdivision 6 or section 62M.07, 62Q.53,
or 62Q.535, the county is responsible. new text begin When a person is temporarily confined in a
Department of Corrections facility solely under subdivision 1a, and not based on any
separate correctional authority: new text end

new text begin (1) the commissioner of corrections may charge the county of financial responsibility
for the costs of confinement; and
new text end

new text begin (2) the Department of Human Services shall use existing appropriations to fund
all remaining nonconfinement costs. The funds received by the commissioner for the
confinement and nonconfinement costs are appropriated to the department for these
purposes.
new text end

"County of financial responsibility" means the county in which the person resides at the
time of confinement or, if the person has no residence in this state, the county which
initiated the confinement. The charge new text begin for confinement in a facility operated by the
commissioner of human service new text end shall be based on the commissioner's determination of
the cost of care pursuant to section 246.50, subdivision 5. When there is a dispute as to
which county is the county of financial responsibility, the county charged for the costs of
confinement shall pay for them pending final determination of the dispute over financial
responsibility. Disputes about the county of financial responsibility shall be submitted to
the commissioner to be settled in the manner prescribed in section 256G.09.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

Minnesota Statutes 2006, section 253B.18, subdivision 4c, is amended to read:

Subd. 4c.

Special review board.

(a) The commissioner shall establish one or more
panels of a special review board deleted text begin for persons committed as mentally ill and dangerous to
the public deleted text end . The board shall consist of three members experienced in the field of mental
illness. One member of each special review board panel shall be a psychiatrist and one
member shall be an attorney. No member shall be affiliated with the Department of
Human Services. The special review board shall meet at least every six months and at
the call of the commissioner. It shall hear and consider all petitions for new text begin a reduction in
custody or to appeal a revocation of provisional discharge. A "reduction in custody"
means new text end transfer from a secure treatment facility deleted text begin ; all petitions for deleted text end new text begin , new text end discharge, new text begin and new text end provisional
discharge deleted text begin , and revocation of provisional discharge; and make recommendations to the
commissioner concerning them deleted text end . Patients may be transferred by the commissioner between
secure treatment facilities without a special review board hearing.

deleted text begin (b) deleted text end Members of the special review board shall receive compensation and
reimbursement for expenses as established by the commissioner.

new text begin (b) A petition filed by a person committed as mentally ill and dangerous to the
public under this section must be heard as provided in subdivision 5 and, as applicable,
subdivision 13. A petition filed by a person committed as a sexual psychopathic
personality or as a sexually dangerous person under section 253B.185, or committed
as both mentally ill and dangerous to the public under this section and as a sexual
psychopathic personality or as a sexually dangerous person must be heard as provided in
section 253B.185, subdivision 9.
new text end

Sec. 8.

Minnesota Statutes 2006, section 253B.18, subdivision 5, is amended to read:

Subd. 5.

Petition; notice of hearing; attendance; order.

(a) A petition for deleted text begin an
order of transfer, discharge, provisional discharge, deleted text end new text begin a reduction in custody new text end or revocation of
provisional discharge shall be filed with the commissioner and may be filed by the patient
or by the head of the treatment facility. A patient may not petition the special review
board for six months following commitment under subdivision 3 or following the final
disposition of any previous petition and subsequent appeal by the patient. The medical
director may petition at any time.

(b) Fourteen days prior to the hearing, the committing court, the county attorney of
the county of commitment, the designated agency, interested person, the petitioner, and
the petitioner's counsel shall be given written notice by the commissioner of the time and
place of the hearing before the special review board. Only those entitled to statutory notice
of the hearing or those administratively required to attend may be present at the hearing.
The patient may designate interested persons to receive notice by providing the names
and addresses to the commissioner at least 21 days before the hearing. The board shall
provide the commissioner with written findings of fact and recommendations within 21
days of the hearing. The commissioner shall issue an order no later than 14 days after
receiving the recommendation of the special review board. A copy of the order shall be
deleted text begin sent by certified mail deleted text end new text begin mailed new text end to every person entitled to statutory notice of the hearing
within five days after it is signed. No order by the commissioner shall be effective sooner
than 30 days after the order is signed, unless the county attorney, the patient, and the
commissioner agree that it may become effective sooner.

(c) The special review board shall hold a hearing on each petition prior to making
its recommendation to the commissioner. The special review board proceedings are not
contested cases as defined in chapter 14. Any person or agency receiving notice that
submits documentary evidence to the special review board prior to the hearing shall also
provide copies to the patient, the patient's counsel, the county attorney of the county of
commitment, the case manager, and the commissioner.

(d) Prior to the final decision by the commissioner, the special review board may be
reconvened to consider events or circumstances that occurred subsequent to the hearing.

(e) In making their recommendations and order, the special review board and
commissioner must consider any statements received from victims under subdivision 5a.

Sec. 9.

Minnesota Statutes 2006, section 253B.18, subdivision 5a, is amended to read:

Subd. 5a.

Victim notification of petition and release; right to submit statement.

(a) As used in this subdivision:

(1) "crime" has the meaning given to "violent crime" in section 609.1095, and
includes criminal sexual conduct in the fifth degree and offenses within the definition of
"crime against the person" in section 253B.02, subdivision 4a, and also includes offenses
listed in section 253B.02, subdivision 7a, paragraph (b), regardless of whether they are
sexually motivated;

(2) "victim" means a person who has incurred loss or harm as a result of a crime
the behavior for which forms the basis for a commitment under this section or section
253B.185; and

(3) "convicted" and "conviction" have the meanings given in section 609.02,
subdivision 5, and also include juvenile court adjudications, findings under Minnesota
Rules of Criminal Procedure, Rule 20.02, that the elements of a crime have been proved,
and findings in commitment cases under this section or section 253B.185 that an act or
acts constituting a crime occurred.

(b) A county attorney who files a petition to commit a person under this section
or section 253B.185 shall make a reasonable effort to provide prompt notice of filing
the petition to any victim of a crime for which the person was convicted. In addition,
the county attorney shall make a reasonable effort to promptly notify the victim of the
resolution of the petition.

(c) Before provisionally discharging, discharging, granting pass-eligible status,
approving a pass plan, or otherwise permanently or temporarily releasing a person
committed under this section or section 253B.185 from a treatment facility, the head of the
treatment facility shall make a reasonable effort to notify any victim of a crime for which
the person was convicted that the person may be discharged or released and that the victim
has a right to submit a written statement regarding decisions of the medical director,
special review board, or commissioner with respect to the person. To the extent possible,
the notice must be provided at least 14 days before any special review board hearing or
before a determination on a pass plan. new text begin Notwithstanding section 611A.06, subdivision 4,
the commissioner shall provide the judicial appeal panel with victim information in order
to comply with the provisions of this section. The judicial appeal panel shall ensure that
the data on victims remains private as provided for in section 611A.06, subdivision 4.
new text end

(d) This subdivision applies only to victims who have requested notification by
contacting, in writing, the county attorney in the county where the conviction for the crime
occurred. A county attorney who receives a request for notification under this paragraph
shall promptly forward the request to the commissioner of human services.

(e) The rights under this subdivision are in addition to rights available to a victim
under chapter 611A. This provision does not give a victim all the rights of a "notified
person" or a person "entitled to statutory notice" under subdivision 4a, 4b, or 5.

Sec. 10.

Minnesota Statutes 2007 Supplement, section 253B.185, subdivision 1b,
is amended to read:

Subd. 1b.

County attorney access to data.

Notwithstanding sections 144.291
to 144.298; 245.467, subdivision 6; 245.4876, subdivision 7; 260B.171; 260B.235,
subdivision 8; 260C.171; and 609.749, subdivision 6, or any provision of chapter 13
or other state law, prior to filing a petition for commitment as a sexual psychopathic
personality or as a sexually dangerous person, and upon notice to the proposed patient,
the county attorney or the county attorney's designee may move the court for an order
granting access to any records or data, to the extent it relates to the proposed patient, for
the purpose of determining whether good cause exists to file a petition and, if a petition
is filed, to support the allegations set forth in the petition.

The court may grant the motion if: (1) the Department of Corrections refers the case
for commitment as a sexual psychopathic personality or a sexually dangerous person; or
(2) upon a showing that the requested category of data or records may be relevant to
the determination by the county attorney or designee. The court shall decide a motion
under this subdivision within 48 hours after a hearing on the motion. Notice to the
proposed patient need not be given upon a showing that such notice may result in harm or
harassment of interested persons or potential witnesses. new text begin Notwithstanding any provision
of chapter 13 or other state law, a county attorney considering the civil commitment of a
person under this section may obtain records and data from the Department of Corrections
or any probation or parole agency in this state upon request, without a court order, for the
purpose of determining whether good cause exists to file a petition, and if a petition is
filed, to support the allegations set forth in the petition. At the time of the request for
the records, the county attorney shall provide notice of the request to the person who is
the subject of the records.
new text end

Data collected pursuant to this subdivision shall retain their original status and, if not
public, are inadmissible in any court proceeding unrelated to civil commitment, unless
otherwise permitted.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11.

Minnesota Statutes 2006, section 253B.185, subdivision 5, is amended to read:

Subd. 5.

Financial responsibility.

(a) For purposes of this subdivision, "state
facility" has the meaning given in section 246.50 new text begin , and also includes a Department of
Corrections facility when the proposed patient is confined in such a facility pursuant to
section 253B.045, subdivision 1a new text end .

(b) Notwithstanding sections 246.54, 253B.045, and any other law to the contrary,
when a petition is filed for commitment under this section pursuant to the notice required
in section 244.05, subdivision 7, the state and county are each responsible for 50 percent of
the cost of the person's confinement at a state facility or county jail, prior to commitment.

(c) The county shall submit an invoice to the state court administrator for
reimbursement of the state's share of the cost of confinement.

(d) Notwithstanding paragraph (b), the state's responsibility for reimbursement is
limited to the amount appropriated for this purpose.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

Minnesota Statutes 2006, section 253B.185, is amended by adding a
subdivision to read:

new text begin Subd. 9. new text end

new text begin Petition for reduction in custody. new text end

new text begin (a) This subdivision applies only
to committed persons as defined in paragraph (b). The procedures in section 253B.18,
subdivision 5a, for victim notification and right to submit a statement under section
253B.18 apply to petitions filed and reductions in custody recommended under this
subdivision.
new text end

new text begin (b) As used in this subdivision:
new text end

new text begin (1) "committed person" means an individual committed under this section, or under
this section and under section 253B.18, as mentally ill and dangerous. It does not include
persons committed only as mentally ill and dangerous under section 253B.18; and
new text end

new text begin (2) "reduction in custody" means transfer out of a secure treatment facility, a
provisional discharge, or a discharge from commitment.
new text end

new text begin (c) A petition for a reduction in custody or an appeal of a revocation of provisional
discharge may be filed by either the committed person or by the head of the treatment
facility and must be filed with and considered by the special review board. A committed
person may not petition the special review board any sooner than six months following
either:
new text end

new text begin (1) the entry of judgment in the district court of the order for commitment issued
under section 253B.18, subdivision 3, or upon the exhaustion of all related appeal rights
in state court relating to that order, whichever is later; or
new text end

new text begin (2) any recommendation of the special review board or order of the judicial appeal
panel, or upon the exhaustion of all appeal rights in state court, whichever is later. The
medical director may petition at any time. The special review board proceedings are not
contested cases as defined in chapter 14.
new text end

new text begin (d) The special review board shall hold a hearing on each petition before issuing a
recommendation under paragraph (f). Fourteen days before the hearing, the committing
court, the county attorney of the county of commitment, the designated agency, an
interested person, the petitioner and the petitioner's counsel, and the committed person
and the committed person's counsel must be given written notice by the commissioner of
the time and place of the hearing before the special review board. Only those entitled to
statutory notice of the hearing or those administratively required to attend may be present
at the hearing. The patient may designate interested persons to receive notice by providing
the names and addresses to the commissioner at least 21 days before the hearing.
new text end

new text begin (e) A person or agency receiving notice that submits documentary evidence to the
special review board before the hearing must also provide copies to the committed person,
the committed person's counsel, the county attorney of the county of commitment, the case
manager, and the commissioner. The special review board must consider any statements
received from victims under section 253B.18, subdivision 5a.
new text end

new text begin (f) Within 30 days of the hearing, the special review board shall issue written
findings of fact and shall recommend denial or approval of the petition to the judicial
appeal panel established under section 253B.19. The commissioner shall forward the
recommendation of the special review board to the judicial appeal panel and to every
person entitled to statutory notice. No reduction in custody or reversal of a revocation
of provisional discharge recommended by the special review board is effective until it
has been reviewed by the judicial appeal panel and until 15 days after an order from the
judicial appeal panel affirming, modifying, or denying the recommendation.
new text end

Sec. 13.

Minnesota Statutes 2006, section 253B.19, subdivision 2, is amended to read:

Subd. 2.

Petition; hearing.

deleted text begin The committed person or the county attorney of the
county from which a patient was committed as a person who is mentally ill and dangerous
to the public, or as a sexual psychopathic personality or as a sexually dangerous person
may petition the appeal panel for a rehearing and reconsideration of a decision by the
commissioner. The petition shall be filed with the Supreme Court within 30 days after the
decision of the commissioner is signed. The Supreme Court shall refer the petition to the
chief judge of the appeal panel. deleted text end new text begin (a) A person committed as mentally ill and dangerous to
the public under section 253B.18, or the county attorney of the county from which the
person was committed or the county of financial responsibility, may petition the judicial
appeal panel for a rehearing and reconsideration of a decision by the commissioner under
section 253B.18, subdivision 5. The judicial appeal panel must not consider petitions for
relief other than those considered by the commissioner from which the appeal is taken.
The petition must be filed with the Supreme Court within 30 days after the decision of
the commissioner is signed. The hearing must be held within 45 days of the filing of the
petition unless an extension is granted for good cause.
new text end

new text begin (b) A person committed as a sexual psychopathic personality or as a sexually
dangerous person under section 253B.185, or committed as both mentally ill and
dangerous to the public under section 253B.18 and as a sexual psychopathic personality or
as a sexually dangerous person under section 253B.185; the county attorney of the county
from which the person was committed or the county of financial responsibility; or the
commissioner may petition the judicial appeal panel for a rehearing and reconsideration
of a decision of the special review board under section 253B.185, subdivision 9. The
petition must be filed with the Supreme Court within 30 days after the decision is mailed
by the commissioner as required in section 253B.185, subdivision 9, paragraph (f). The
hearing must be held within 180 days of the filing of the petition unless an extension is
granted for good cause. If no party petitions the judicial appeal panel for a rehearing
or reconsideration within 30 days, the judicial appeal panel shall either issue an order
adopting the recommendations of the special review board or set the matter on for a
hearing pursuant to this paragraph.
new text end

new text begin (c) For an appeal under paragraph (a) or (b), the Supreme Court shall refer the
petition to the chief judge of the judicial appeal panel. new text end The chief judge shall notify the
patient, the county attorney of the county of commitment, the designated agency, the
commissioner, the head of the treatment facility, any interested person, and other persons
the chief judge designates, of the time and place of the hearing on the petition. The notice
shall be given at least 14 days prior to the date of the hearing. deleted text begin The hearing shall be within
45 days of the filing of the petition unless an extension is granted for good cause. deleted text end

new text begin (d) new text end Any person may oppose the petition. new text begin The patient; patient's counsel; the county
attorney of the committing county or the county of financial responsibility; and the
commissioner shall participate as parties to the proceeding pending before the judicial
appeal panel and shall, no later than 20 days before the hearing on the petition, inform the
judicial appeal panel and the opposing party in writing whether they support or oppose the
petition and provide a summary of facts in support of their position. new text end The new text begin judicial new text end appeal
panel may appoint examiners and may adjourn the hearing from time to time. It shall hear
and receive all relevant testimony and evidence and make a record of all proceedings.
The patient deleted text begin , deleted text end new text begin ; new text end patient's counsel deleted text begin , deleted text end new text begin ; new text end and the county attorney of the committing county deleted text begin may deleted text end
new text begin or the county of financial responsibility have the right to new text end be present and new text begin may new text end present
and cross-examine all witnesses new text begin and offer a factual and legal basis in support of their
positions new text end . The petitioning party bears the burden of going forward with the evidence. The
party opposing discharge bears the burden of proof by clear and convincing evidence that
the respondent is in need of commitment.

Sec. 14.

Minnesota Statutes 2006, section 253B.19, subdivision 3, is amended to read:

Subd. 3.

Decision.

A majority of the new text begin judicial new text end appeal panel shall rule upon the
petition. new text begin The panel shall consider the petition de novo. new text end The order of the new text begin judicial new text end appeal
panel shall supersede deleted text begin the deleted text end new text begin an new text end order of the commissioner deleted text begin in the cases deleted text end new text begin under section 253B.18,
subdivision 5 new text end . No order of the new text begin judicial new text end appeal panel granting a transfer, discharge or
provisional discharge shall be made effective sooner than 15 days after it is issued.
The panel may not consider petitions for relief other than those considered by the
commissioner new text begin or special review board new text end from which the appeal is taken. The new text begin judicial appeal new text end
panel may not grant a transfer or provisional discharge on terms or conditions that were
not presented to the commissioner or the special review board.

Sec. 15.

Minnesota Statutes 2006, section 626.5572, subdivision 21, is amended to
read:

Subd. 21.

Vulnerable adult.

"Vulnerable adult" means any person 18 years of
age or older who:

(1) is a resident or inpatient of a facility;

(2) receives services at or from a facility required to be licensed to serve adults
under sections 245A.01 to 245A.15, except that a person receiving outpatient services for
treatment of chemical dependency or mental illness, or one who is new text begin served in the Minnesota
sex offender program on a court-hold order for commitment, or is new text end committed as a sexual
psychopathic personality or as a sexually dangerous person under chapter 253B, is not
considered a vulnerable adult unless the person meets the requirements of clause (4);

(3) receives services from a home care provider required to be licensed under section
144A.46; or from a person or organization that exclusively offers, provides, or arranges
for personal care assistant services under the medical assistance program as authorized
under sections 256B.04, subdivision 16, 256B.0625, subdivision 19a, 256B.0651, and
256B.0653 to 256B.0656; or

(4) regardless of residence or whether any type of service is received, possesses a
physical or mental infirmity or other physical, mental, or emotional dysfunction:

(i) that impairs the individual's ability to provide adequately for the individual's
own care without assistance, including the provision of food, shelter, clothing, health
care, or supervision; and

(ii) because of the dysfunction or infirmity and the need for assistance, the individual
has an impaired ability to protect the individual from maltreatment.

Sec. 16. new text begin MINNESOTA SEX OFFENDER PROGRAM; OPERATING
STANDARDS.
new text end

new text begin The commissioner of human services shall convene a working group of interested
parties to develop standards and guidelines for the operations of the Minnesota sex
offender program. The standards and guidelines shall include, but not be limited to:
new text end

new text begin (1) criteria to establish a sex offender treatment advisory board;
new text end

new text begin (2) criteria to ensure the necessary provision of health and dental care for patients;
new text end

new text begin (3) criteria to ensure the necessary provision of mental health care; and
new text end

new text begin (4) fire and safety criteria.
new text end

new text begin The standards and guidelines shall be developed by the commissioner in consultation
with the working group members by February 1, 2009, and presented to the chairs of
the policy and finance committees having jurisdiction over the Minnesota sex offender
program for review.
new text end

ARTICLE 3

PUBLIC ASSISTANCE AND LICENSING

Section 1.

Minnesota Statutes 2006, section 245C.24, subdivision 2, is amended to read:

Subd. 2.

Permanent bar to set aside a disqualification.

(a) Except as provided in
paragraph (b), the commissioner may not set aside the disqualification of any individual
disqualified pursuant to this chapter, regardless of how much time has passed, if the
individual was disqualified for a crime or conduct listed in section 245C.15, subdivision 1.

(b) For an individual in the chemical dependency new text begin or corrections new text end field who was
disqualified for a crime or conduct listed under section 245C.15, subdivision 1, and whose
disqualification was set aside prior to July 1, 2005, the commissioner must consider
granting a variance pursuant to section 245C.30 for the license holder for a program
dealing primarily with adults. A request for reconsideration evaluated under this paragraph
must include a letter of recommendation from the license holder that was subject to the
prior set-aside decision addressing the individual's quality of care to children or vulnerable
adults and the circumstances of the individual's departure from that service.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 2.

Minnesota Statutes 2007 Supplement, section 256.01, subdivision 2, is
amended to read:

Subd. 2.

Specific powers.

Subject to the provisions of section 241.021, subdivision
2, the commissioner of human services shall carry out the specific duties in paragraphs (a)
through (cc):

(a) Administer and supervise all forms of public assistance provided for by state law
and other welfare activities or services as are vested in the commissioner. Administration
and supervision of human services activities or services includes, but is not limited to,
assuring timely and accurate distribution of benefits, completeness of service, and quality
program management. In addition to administering and supervising human services
activities vested by law in the department, the commissioner shall have the authority to:

(1) require county agency participation in training and technical assistance programs
to promote compliance with statutes, rules, federal laws, regulations, and policies
governing human services;

(2) monitor, on an ongoing basis, the performance of county agencies in the
operation and administration of human services, enforce compliance with statutes, rules,
federal laws, regulations, and policies governing welfare services and promote excellence
of administration and program operation;

(3) develop a quality control program or other monitoring program to review county
performance and accuracy of benefit determinations;

(4) require county agencies to make an adjustment to the public assistance benefits
issued to any individual consistent with federal law and regulation and state law and rule
and to issue or recover benefits as appropriate;

(5) delay or deny payment of all or part of the state and federal share of benefits and
administrative reimbursement according to the procedures set forth in section 256.017;

(6) make contracts with and grants to public and private agencies and organizations,
both profit and nonprofit, and individuals, using appropriated funds; and

(7) enter into contractual agreements with federally recognized Indian tribes with
a reservation in Minnesota to the extent necessary for the tribe to operate a federally
approved family assistance program or any other program under the supervision of the
commissioner. The commissioner shall consult with the affected county or counties in
the contractual agreement negotiations, if the county or counties wish to be included,
in order to avoid the duplication of county and tribal assistance program services. The
commissioner may establish necessary accounts for the purposes of receiving and
disbursing funds as necessary for the operation of the programs.

(b) Inform county agencies, on a timely basis, of changes in statute, rule, federal law,
regulation, and policy necessary to county agency administration of the programs.

(c) Administer and supervise all child welfare activities; promote the enforcement of
laws protecting disabled, dependent, neglected and delinquent children, and children born
to mothers who were not married to the children's fathers at the times of the conception
nor at the births of the children; license and supervise child-caring and child-placing
agencies and institutions; supervise the care of children in boarding and foster homes or
in private institutions; and generally perform all functions relating to the field of child
welfare now vested in the State Board of Control.

(d) Administer and supervise all noninstitutional service to disabled persons,
including those who are visually impaired, hearing impaired, or physically impaired
or otherwise disabled. The commissioner may provide and contract for the care and
treatment of qualified indigent children in facilities other than those located and available
at state hospitals when it is not feasible to provide the service in state hospitals.

(e) Assist and actively cooperate with other departments, agencies and institutions,
local, state, and federal, by performing services in conformity with the purposes of Laws
1939, chapter 431.

(f) Act as the agent of and cooperate with the federal government in matters of
mutual concern relative to and in conformity with the provisions of Laws 1939, chapter
431, including the administration of any federal funds granted to the state to aid in the
performance of any functions of the commissioner as specified in Laws 1939, chapter 431,
and including the promulgation of rules making uniformly available medical care benefits
to all recipients of public assistance, at such times as the federal government increases its
participation in assistance expenditures for medical care to recipients of public assistance,
the cost thereof to be borne in the same proportion as are grants of aid to said recipients.

(g) Establish and maintain any administrative units reasonably necessary for the
performance of administrative functions common to all divisions of the department.

(h) Act as designated guardian of both the estate and the person of all the wards of
the state of Minnesota, whether by operation of law or by an order of court, without any
further act or proceeding whatever, except as to persons committed as developmentally
disabled. For children under the guardianship of the commissioner or a tribe in Minnesota
recognized by the Secretary of the Interior whose interests would be best served by
adoptive placement, the commissioner may contract with a licensed child-placing agency
or a Minnesota tribal social services agency to provide adoption services. A contract
with a licensed child-placing agency must be designed to supplement existing county
efforts and may not replace existing county programs or tribal social services, unless the
replacement is agreed to by the county board and the appropriate exclusive bargaining
representative, tribal governing body, or the commissioner has evidence that child
placements of the county continue to be substantially below that of other counties. Funds
encumbered and obligated under an agreement for a specific child shall remain available
until the terms of the agreement are fulfilled or the agreement is terminated.

(i) Act as coordinating referral and informational center on requests for service for
newly arrived immigrants coming to Minnesota.

(j) The specific enumeration of powers and duties as hereinabove set forth shall in no
way be construed to be a limitation upon the general transfer of powers herein contained.

(k) Establish county, regional, or statewide schedules of maximum fees and charges
which may be paid by county agencies for medical, dental, surgical, hospital, nursing and
nursing home care and medicine and medical supplies under all programs of medical
care provided by the state and for congregate living care under the income maintenance
programs.

(l) Have the authority to conduct and administer experimental projects to test
methods and procedures of administering assistance and services to recipients or potential
recipients of public welfare. To carry out such experimental projects, it is further provided
that the commissioner of human services is authorized to waive the enforcement of
existing specific statutory program requirements, rules, and standards in one or more
counties. The order establishing the waiver shall provide alternative methods and
procedures of administration, shall not be in conflict with the basic purposes, coverage, or
benefits provided by law, and in no event shall the duration of a project exceed four years.
It is further provided that no order establishing an experimental project as authorized by
the provisions of this section shall become effective until the following conditions have
been met:

(1) the secretary of health and human services of the United States has agreed, for
the same project, to waive state plan requirements relative to statewide uniformity; and

(2) a comprehensive plan, including estimated project costs, shall be approved by
the Legislative Advisory Commission and filed with the commissioner of administration.

(m) According to federal requirements, establish procedures to be followed by
local welfare boards in creating citizen advisory committees, including procedures for
selection of committee members.

(n) Allocate federal fiscal disallowances or sanctions which are based on quality
control error rates for the aid to families with dependent children program formerly
codified in sections 256.72 to 256.87, medical assistance, or food stamp program in the
following manner:

(1) one-half of the total amount of the disallowance shall be borne by the county
boards responsible for administering the programs. For the medical assistance and the
AFDC program formerly codified in sections 256.72 to 256.87, disallowances shall be
shared by each county board in the same proportion as that county's expenditures for the
sanctioned program are to the total of all counties' expenditures for the AFDC program
formerly codified in sections 256.72 to 256.87, and medical assistance programs. For the
food stamp program, sanctions shall be shared by each county board, with 50 percent of
the sanction being distributed to each county in the same proportion as that county's
administrative costs for food stamps are to the total of all food stamp administrative costs
for all counties, and 50 percent of the sanctions being distributed to each county in the
same proportion as that county's value of food stamp benefits issued are to the total of
all benefits issued for all counties. Each county shall pay its share of the disallowance
to the state of Minnesota. When a county fails to pay the amount due hereunder, the
commissioner may deduct the amount from reimbursement otherwise due the county, or
the attorney general, upon the request of the commissioner, may institute civil action
to recover the amount due; and

(2) notwithstanding the provisions of clause (1), if the disallowance results from
knowing noncompliance by one or more counties with a specific program instruction, and
that knowing noncompliance is a matter of official county board record, the commissioner
may require payment or recover from the county or counties, in the manner prescribed in
clause (1), an amount equal to the portion of the total disallowance which resulted from the
noncompliance, and may distribute the balance of the disallowance according to clause (1).

(o) Develop and implement special projects that maximize reimbursements and
result in the recovery of money to the state. For the purpose of recovering state money,
the commissioner may enter into contracts with third parties. Any recoveries that result
from projects or contracts entered into under this paragraph shall be deposited in the
state treasury and credited to a special account until the balance in the account reaches
$1,000,000. When the balance in the account exceeds $1,000,000, the excess shall be
transferred and credited to the general fund. All money in the account is appropriated to
the commissioner for the purposes of this paragraph.

(p) Have the authority to make direct payments to facilities providing shelter
to women and their children according to section 256D.05, subdivision 3. Upon
the written request of a shelter facility that has been denied payments under section
256D.05, subdivision 3, the commissioner shall review all relevant evidence and make
a determination within 30 days of the request for review regarding issuance of direct
payments to the shelter facility. Failure to act within 30 days shall be considered a
determination not to issue direct payments.

(q) Have the authority to establish and enforce the following county reporting
requirements:

(1) the commissioner shall establish fiscal and statistical reporting requirements
necessary to account for the expenditure of funds allocated to counties for human
services programs. When establishing financial and statistical reporting requirements, the
commissioner shall evaluate all reports, in consultation with the counties, to determine if
the reports can be simplified or the number of reports can be reduced;

(2) the county board shall submit monthly or quarterly reports to the department
as required by the commissioner. Monthly reports are due no later than 15 working days
after the end of the month. Quarterly reports are due no later than 30 calendar days after
the end of the quarter, unless the commissioner determines that the deadline must be
shortened to 20 calendar days to avoid jeopardizing compliance with federal deadlines
or risking a loss of federal funding. Only reports that are complete, legible, and in the
required format shall be accepted by the commissioner;

(3) if the required reports are not received by the deadlines established in clause (2),
the commissioner may delay payments and withhold funds from the county board until
the next reporting period. When the report is needed to account for the use of federal
funds and the late report results in a reduction in federal funding, the commissioner shall
withhold from the county boards with late reports an amount equal to the reduction in
federal funding until full federal funding is received;

(4) a county board that submits reports that are late, illegible, incomplete, or not
in the required format for two out of three consecutive reporting periods is considered
noncompliant. When a county board is found to be noncompliant, the commissioner
shall notify the county board of the reason the county board is considered noncompliant
and request that the county board develop a corrective action plan stating how the
county board plans to correct the problem. The corrective action plan must be submitted
to the commissioner within 45 days after the date the county board received notice
of noncompliance;

(5) the final deadline for fiscal reports or amendments to fiscal reports is one year
after the date the report was originally due. If the commissioner does not receive a report
by the final deadline, the county board forfeits the funding associated with the report for
that reporting period and the county board must repay any funds associated with the
report received for that reporting period;

(6) the commissioner may not delay payments, withhold funds, or require repayment
under clause (3) or (5) if the county demonstrates that the commissioner failed to
provide appropriate forms, guidelines, and technical assistance to enable the county to
comply with the requirements. If the county board disagrees with an action taken by the
commissioner under clause (3) or (5), the county board may appeal the action according
to sections 14.57 to 14.69; and

(7) counties subject to withholding of funds under clause (3) or forfeiture or
repayment of funds under clause (5) shall not reduce or withhold benefits or services to
clients to cover costs incurred due to actions taken by the commissioner under clause
(3) or (5).

(r) Allocate federal fiscal disallowances or sanctions for audit exceptions when
federal fiscal disallowances or sanctions are based on a statewide random sample deleted text begin for
the foster care program under title IV-E of the Social Security Act, United States Code,
title 42, deleted text end in direct proportion to each county's deleted text begin title IV-E foster care maintenance deleted text end claim
for that period.

(s) Be responsible for ensuring the detection, prevention, investigation, and
resolution of fraudulent activities or behavior by applicants, recipients, and other
participants in the human services programs administered by the department.

(t) Require county agencies to identify overpayments, establish claims, and utilize
all available and cost-beneficial methodologies to collect and recover these overpayments
in the human services programs administered by the department.

(u) Have the authority to administer a drug rebate program for drugs purchased
pursuant to the prescription drug program established under section 256.955 after the
beneficiary's satisfaction of any deductible established in the program. The commissioner
shall require a rebate agreement from all manufacturers of covered drugs as defined in
section 256B.0625, subdivision 13. Rebate agreements for prescription drugs delivered on
or after July 1, 2002, must include rebates for individuals covered under the prescription
drug program who are under 65 years of age. For each drug, the amount of the rebate shall
be equal to the rebate as defined for purposes of the federal rebate program in United
States Code, title 42, section 1396r-8. The manufacturers must provide full payment
within 30 days of receipt of the state invoice for the rebate within the terms and conditions
used for the federal rebate program established pursuant to section 1927 of title XIX of
the Social Security Act. The manufacturers must provide the commissioner with any
information necessary to verify the rebate determined per drug. The rebate program shall
utilize the terms and conditions used for the federal rebate program established pursuant to
section 1927 of title XIX of the Social Security Act.

(v) Have the authority to administer the federal drug rebate program for drugs
purchased under the medical assistance program as allowed by section 1927 of title XIX
of the Social Security Act and according to the terms and conditions of section 1927.
Rebates shall be collected for all drugs that have been dispensed or administered in an
outpatient setting and that are from manufacturers who have signed a rebate agreement
with the United States Department of Health and Human Services.

(w) Have the authority to administer a supplemental drug rebate program for drugs
purchased under the medical assistance program. The commissioner may enter into
supplemental rebate contracts with pharmaceutical manufacturers and may require prior
authorization for drugs that are from manufacturers that have not signed a supplemental
rebate contract. Prior authorization of drugs shall be subject to the provisions of section
256B.0625, subdivision 13.

(x) Operate the department's communication systems account established in Laws
1993, First Special Session chapter 1, article 1, section 2, subdivision 2, to manage shared
communication costs necessary for the operation of the programs the commissioner
supervises. A communications account may also be established for each regional
treatment center which operates communications systems. Each account must be used
to manage shared communication costs necessary for the operations of the programs the
commissioner supervises. The commissioner may distribute the costs of operating and
maintaining communication systems to participants in a manner that reflects actual usage.
Costs may include acquisition, licensing, insurance, maintenance, repair, staff time and
other costs as determined by the commissioner. Nonprofit organizations and state, county,
and local government agencies involved in the operation of programs the commissioner
supervises may participate in the use of the department's communications technology and
share in the cost of operation. The commissioner may accept on behalf of the state any
gift, bequest, devise or personal property of any kind, or money tendered to the state for
any lawful purpose pertaining to the communication activities of the department. Any
money received for this purpose must be deposited in the department's communication
systems accounts. Money collected by the commissioner for the use of communication
systems must be deposited in the state communication systems account and is appropriated
to the commissioner for purposes of this section.

(y) Receive any federal matching money that is made available through the medical
assistance program for the consumer satisfaction survey. Any federal money received for
the survey is appropriated to the commissioner for this purpose. The commissioner may
expend the federal money received for the consumer satisfaction survey in either year of
the biennium.

(z) Designate community information and referral call centers and incorporate
cost reimbursement claims from the designated community information and referral
call centers into the federal cost reimbursement claiming processes of the department
according to federal law, rule, and regulations. Existing information and referral centers
provided by Greater Twin Cities United Way or existing call centers for which Greater
Twin Cities United Way has legal authority to represent, shall be included in these
designations upon review by the commissioner and assurance that these services are
accredited and in compliance with national standards. Any reimbursement is appropriated
to the commissioner and all designated information and referral centers shall receive
payments according to normal department schedules established by the commissioner
upon final approval of allocation methodologies from the United States Department of
Health and Human Services Division of Cost Allocation or other appropriate authorities.

(aa) Develop recommended standards for foster care homes that address the
components of specialized therapeutic services to be provided by foster care homes with
those services.

(bb) Authorize the method of payment to or from the department as part of the
human services programs administered by the department. This authorization includes the
receipt or disbursement of funds held by the department in a fiduciary capacity as part of
the human services programs administered by the department.

(cc) Have the authority to administer a drug rebate program for drugs purchased for
persons eligible for general assistance medical care under section 256D.03, subdivision 3.
For manufacturers that agree to participate in the general assistance medical care rebate
program, the commissioner shall enter into a rebate agreement for covered drugs as
defined in section 256B.0625, subdivisions 13 and 13d. For each drug, the amount of the
rebate shall be equal to the rebate as defined for purposes of the federal rebate program in
United States Code, title 42, section 1396r-8. The manufacturers must provide payment
within the terms and conditions used for the federal rebate program established under
section 1927 of title XIX of the Social Security Act. The rebate program shall utilize
the terms and conditions used for the federal rebate program established under section
1927 of title XIX of the Social Security Act.

Effective January 1, 2006, drug coverage under general assistance medical care shall
be limited to those prescription drugs that:

(1) are covered under the medical assistance program as described in section
256B.0625, subdivisions 13 and 13d; and

(2) are provided by manufacturers that have fully executed general assistance
medical care rebate agreements with the commissioner and comply with such agreements.
Prescription drug coverage under general assistance medical care shall conform to
coverage under the medical assistance program according to section 256B.0625,
subdivisions 13 to 13g.

The rebate revenues collected under the drug rebate program are deposited in the
general fund.

Sec. 3.

Minnesota Statutes 2007 Supplement, section 256J.20, subdivision 3, is
amended to read:

Subd. 3.

Other property limitations.

To be eligible for MFIP, the equity value of
all nonexcluded real and personal property of the assistance unit must not exceed $2,000
for applicants and $5,000 for ongoing participants. The value of assets in clauses (1) to
(19) must be excluded when determining the equity value of real and personal property:

(1) a licensed vehicle up to a loan value of less than or equal to $15,000. If the
assistance unit owns more than one licensed vehicle, new text begin the county agency shall new text end determine the
loan value of all additional vehicles and exclude the combined loan value of less than or
equal to $7,500. The county agency shall apply any excess loan value as if it were equity
value to the asset limit described in this section, excluding: (i) the value of one vehicle
per physically disabled person when the vehicle is needed to transport the disabled unit
member; this exclusion does not apply to mentally disabled people; (ii) the value of special
equipment for a disabled member of the assistance unit; and (iii) any vehicle used for
long-distance travel, other than daily commuting, for the employment of a unit member.

To establish the loan value of vehicles, a county agency must use the N.A.D.A.
Official Used Car Guide, Midwest Edition, for newer model cars. When a vehicle is not
listed in the guidebook, or when the applicant or participant disputes the loan value listed
in the guidebook as unreasonable given the condition of the particular vehicle, the county
agency may require the applicant or participant document the loan value by securing a
written statement from a motor vehicle dealer licensed under section 168.27, stating
the amount that the dealer would pay to purchase the vehicle. The county agency shall
reimburse the applicant or participant for the cost of a written statement that documents
a lower loan value;

(2) the value of life insurance policies for members of the assistance unit;

(3) one burial plot per member of an assistance unit;

(4) the value of personal property needed to produce earned income, including
tools, implements, farm animals, inventory, business loans, business checking and
savings accounts used at least annually and used exclusively for the operation of a
self-employment business, and any motor vehicles if at least 50 percent of the vehicle's use
is to produce income and if the vehicles are essential for the self-employment business;

(5) the value of personal property not otherwise specified which is commonly
used by household members in day-to-day living such as clothing, necessary household
furniture, equipment, and other basic maintenance items essential for daily living;

(6) the value of real and personal property owned by a recipient of Supplemental
Security Income or Minnesota supplemental aid;

(7) the value of corrective payments, but only for the month in which the payment
is received and for the following month;

(8) a mobile home or other vehicle used by an applicant or participant as the
applicant's or participant's home;

(9) money in a separate escrow account that is needed to pay real estate taxes or
insurance and that is used for this purpose;

(10) money held in escrow to cover employee FICA, employee tax withholding,
sales tax withholding, employee worker compensation, business insurance, property rental,
property taxes, and other costs that are paid at least annually, but less often than monthly;

(11) monthly assistance payments for the current month's or short-term emergency
needs under section 256J.626, subdivision 2;

(12) the value of school loans, grants, or scholarships for the period they are
intended to cover;

(13) payments listed in section 256J.21, subdivision 2, clause (9), which are held
in escrow for a period not to exceed three months to replace or repair personal or real
property;

(14) income received in a budget month through the end of the payment month;

(15) savings from earned income of a minor child or a minor parent that are set aside
in a separate account designated specifically for future education or employment costs;

(16) the federal earned income credit, Minnesota working family credit, state and
federal income tax refunds, state homeowners and renters credits under chapter 290A,
property tax rebates and other federal or state tax rebates in the month received and the
following month;

(17) payments excluded under federal law as long as those payments are held in a
separate account from any nonexcluded funds;

(18) the assets of children ineligible to receive MFIP benefits because foster care or
adoption assistance payments are made on their behalf; and

(19) the assets of persons whose income is excluded under section 256J.21,
subdivision 2, clause (43).

Sec. 4.

Minnesota Statutes 2006, section 256J.24, subdivision 5, is amended to read:

Subd. 5.

MFIP transitional standard.

The MFIP transitional standard is based
on the number of persons in the assistance unit eligible for both food and cash assistance
unless the restrictions in subdivision 6 on the birth of a child apply. The following table
represents the transitional standards effective October 1, deleted text begin 2004 deleted text end new text begin 2007 new text end .

Number of Eligible People

Transitional Standard

Cash Portion

Food Portion

1	deleted text begin $379 deleted text end new text begin $391 new text end :	$250	deleted text begin $129 deleted text end new text begin $141 new text end
2	deleted text begin $675 deleted text end new text begin $698 new text end :	$437	deleted text begin $238 deleted text end new text begin $261 new text end
3	deleted text begin $876 deleted text end new text begin $910 new text end :	$532	deleted text begin $344 deleted text end new text begin $378 new text end
4	deleted text begin $1,036 deleted text end new text begin $1,091 new text end :	$621	deleted text begin $415 deleted text end new text begin $470 new text end
5	deleted text begin $1,180 deleted text end new text begin $1,245 new text end :	$697	deleted text begin $483 deleted text end new text begin $548 new text end
6	deleted text begin $1,350 deleted text end new text begin $1,425 new text end :	$773	deleted text begin $577 deleted text end new text begin $652 new text end
7	deleted text begin $1,472 deleted text end new text begin $1,553 new text end :	$850	deleted text begin $622 deleted text end new text begin $703 new text end
8	deleted text begin $1,623 deleted text end new text begin $1,713 new text end :	$916	deleted text begin $707 deleted text end new text begin $797 new text end
9	deleted text begin $1,772 deleted text end new text begin $1,871 new text end :	$980	deleted text begin $792 deleted text end new text begin $891 new text end
10	deleted text begin $1,915 deleted text end new text begin $2,024 new text end :	$1,035	deleted text begin $880 deleted text end new text begin $989 new text end
over 10	add deleted text begin $142 deleted text end new text begin $151 new text end :	$53	deleted text begin $89 deleted text end new text begin $98 new text end
per additional member.

The commissioner shall annually publish in the State Register the transitional
standard for an assistance unit sizes 1 to 10 including a breakdown of the cash and food
portions.

Sec. 5.

Minnesota Statutes 2006, section 256J.425, subdivision 1, is amended to read:

Subdivision 1.

Eligibility.

(a) To be eligible for a hardship extension, a participant
in an assistance unit subject to the time limit under section 256J.42, subdivision 1, must
be in compliance in the participant's 60th counted month. For purposes of determining
eligibility for a hardship extension, a participant is in compliance in any month that the
participant has not been sanctioned. new text begin In order to maintain eligibility for any of the hardship
extension categories a participant shall develop and comply with either an employment
plan or a family stabilization services plan, whichever is appropriate.
new text end

(b) If one participant in a two-parent assistance unit is determined to be ineligible for
a hardship extension, the county shall give the assistance unit the option of disqualifying
the ineligible participant from MFIP. In that case, the assistance unit shall be treated as a
one-parent assistance unit and the assistance unit's MFIP grant shall be calculated using
the shared household standard under section 256J.08, subdivision 82a.

(c) Prior to denying an extension, the county must review the sanction status and
determine whether the sanction is appropriate or if good cause exists under section 256J.57.
If the sanction was inappropriately applied or the participant is granted a good cause
exception before the end of month 60, the participant shall be considered for an extension.

Sec. 6.

Minnesota Statutes 2007 Supplement, section 256J.49, subdivision 13, is
amended to read:

Subd. 13.

Work activity.

"Work activity" means any activity in a participant's
approved employment plan that leads to employment. For purposes of the MFIP program,
this includes activities that meet the definition of work activity under the participation
requirements of TANF. Work activity includes:

(1) unsubsidized employment, including work study and paid apprenticeships or
internships;

(2) subsidized private sector or public sector employment, including grant diversion
as specified in section 256J.69, on-the-job training as specified in section 256J.66,
deleted text begin the self-employment investment demonstration program (SEID) as specified in section
256J.65, deleted text end paid work experience, and supported work when a wage subsidy is provided;

(3) unpaid work experience, including community service, volunteer work,
the community work experience program as specified in section 256J.67, unpaid
apprenticeships or internships, and supported work when a wage subsidy is not provided.
Unpaid work experience is only an option if the participant has been unable to obtain or
maintain paid employment in the competitive labor market, and no paid work experience
programs are available to the participant. deleted text begin Unless deleted text end new text begin Prior to placing a participant in unpaid
work, the county must inform the participant that the participant will be notified if a
paid work experience or supported work position becomes available. If new text end a participant
consents new text begin in writing new text end to deleted text begin participating deleted text end new text begin participate new text end in unpaid work experience, the participant's
employment plan may only include unpaid work experience if including the unpaid work
experience in the plan will meet the following criteria:

(i) the unpaid work experience will provide the participant specific skills or
experience that cannot be obtained through other work activity options where the
participant resides or is willing to reside; and

(ii) the skills or experience gained through the unpaid work experience will result
in higher wages for the participant than the participant could earn without the unpaid
work experience;

(4) job search including job readiness assistance, job clubs, job placement,
job-related counseling, and job retention services;

(5) job readiness education, including English as a second language (ESL) or
functional work literacy classes as limited by the provisions of section 256J.531,
subdivision 2, general educational development (GED) course work, high school
completion, and adult basic education as limited by the provisions of section 256J.531,
subdivision 1;

(6) job skills training directly related to employment, including education and
training that can reasonably be expected to lead to employment, as limited by the
provisions of section 256J.53;

(7) providing child care services to a participant who is working in a community
service program;

(8) activities included in the employment plan that is developed under section
256J.521, subdivision 3; and

(9) preemployment activities including chemical and mental health assessments,
treatment, and services; learning disabilities services; child protective services; family
stabilization services; or other programs designed to enhance employability.

Sec. 7.

Minnesota Statutes 2006, section 256J.521, subdivision 4, is amended to read:

Subd. 4.

Self-employment.

(a) Self-employment activities may be included in an
employment plan contingent on the development of a business plan which establishes a
timetable and earning goals that will result in the participant exiting MFIP assistance.
Business plans must be developed with assistance from an individual or organization with
expertise in small business as approved by the job counselor.

(b) Participants with an approved plan that includes self-employment must meet
the participation requirements in section 256J.55, subdivision 1. Only hours where
the participant earns at least minimum wage shall be counted toward the requirement.
Additional activities and hours necessary to meet the participation requirements in section
256J.55, subdivision 1, must be included in the employment plan.

(c) Employment plans which include self-employment activities must be reviewed
every three months. Participants who fail, without good cause, to make satisfactory
progress as established in the business plan must revise the employment plan to replace
the self-employment with other approved work activities.

deleted text begin (d) The requirements of this subdivision may be waived for participants who are
enrolled in the self-employment investment demonstration program (SEID) under section
256J.65, and who make satisfactory progress as determined by the job counselor and
the SEID provider.
deleted text end

Sec. 8.

Minnesota Statutes 2006, section 256J.54, subdivision 2, is amended to read:

Subd. 2.

Responsibility for assessment and employment plan.

For caregivers
who are under age 18 without a high school diploma or its equivalent, the assessment
under subdivision 1 and the employment plan under subdivision 3 must be completed
by the social services agency under section 257.33. For caregivers who are age 18 or
19 without a high school diploma or its equivalent who choose to have an employment
plan with an education option under subdivision 3, the assessment under subdivision 1
and the employment plan under subdivision 3 must be completed by the job counselor
or, at county option, by the social services agency under section 257.33. Upon reaching
age 18 or 19 a caregiver who received social services under section 257.33 and is without
a high school diploma or its equivalent has the option to choose whether to continue
receiving services under the caregiver's plan from the social services agency or to utilize
an MFIP employment and training service provider. The social services agency or the job
counselor shall consult with deleted text begin representatives of educational agencies that are required to
assist in developing educational plans under section 124D.331 deleted text end new text begin the participant's school in
developing the educational plan new text end .

Sec. 9.

Minnesota Statutes 2006, section 256J.54, subdivision 5, is amended to read:

Subd. 5.

School attendance required.

(a) deleted text begin Notwithstanding the provisions of
section 256J.56, deleted text end Minor parents, or 18- or 19-year-old parents without a high school
diploma or its equivalent who chooses an employment plan with an education option
must attend school unless:

(1) transportation services needed to enable the caregiver to attend school are not
available;

(2) appropriate child care services needed to enable the caregiver to attend school
are not available;

(3) the caregiver is ill or incapacitated seriously enough to prevent attendance at
school; or

(4) the caregiver is needed in the home because of the illness or incapacity of
another member of the household. This includes a caregiver of a child who is younger
than six weeks of age.

(b) The caregiver must be enrolled in a secondary school and meeting the school's
attendance requirements. The county, social service agency, or job counselor must verify
at least once per quarter that the caregiver is meeting the school's attendance requirements.
An enrolled caregiver is considered to be meeting the attendance requirements when the
school is not in regular session, including during holiday and summer breaks.

Sec. 10.

Minnesota Statutes 2006, section 256J.545, is amended to read:

256J.545 FAMILY VIOLENCE WAIVER CRITERIA.

(a) In order to qualify for a family violence waiver, an individual must provide
documentation of past or current family violence which may prevent the individual
from participating in certain employment activities. deleted text begin A claim of family violence must
be documented by the applicant or participant providing a sworn statement which is
supported by collateral documentation.
deleted text end

(b) deleted text begin Collateral documentation may consist of deleted text end new text begin The following items may be considered
acceptable documentation or verification of family violence new text end :

(1) police, government agency, or court records;

(2) a statement from a battered women's shelter staff with knowledge of the
circumstances or credible evidence that supports the sworn statement;

(3) a statement from a sexual assault or domestic violence advocate with knowledge
of the circumstances or credible evidence that supports the sworn statement; new text begin or
new text end

(4) a statement from professionals from whom the applicant or recipient has sought
assistance for the abuse deleted text begin ; or deleted text end new text begin .
new text end

deleted text begin (5) a sworn statement from any other individual with knowledge of circumstances or
credible evidence that supports the sworn statement.
deleted text end

new text begin (c) A claim of family violence may also be documented by a sworn statement from
the applicant or participant and a sworn statement from any other person with knowledge
of the circumstances or credible evidence that supports the client's statement.
new text end

Sec. 11.

Minnesota Statutes 2007 Supplement, section 256J.626, subdivision 3, is
amended to read:

Subd. 3.

Eligibility for services.

Families with a minor child, a pregnant woman,
or a noncustodial parent of a minor child receiving assistance, with incomes below 200
percent of the federal poverty guideline for a family of the applicable size, are eligible for
services funded under the consolidated fund. Counties and tribes must give priority to
families currently receiving MFIP, the diversionary work program, or family stabilization
services, and families at risk of receiving MFIP or diversionary work program. new text begin A county
or tribe shall not impose a residency requirement on families, except for the residency
requirement under section 256J.12.
new text end

Sec. 12.

Minnesota Statutes 2007 Supplement, section 256J.626, subdivision 7,
is amended to read:

Subd. 7.

Performance base funds.

(a) deleted text begin Beginning deleted text end new text begin For new text end calendar year deleted text begin 2008 deleted text end new text begin 2009
and yearly thereafter new text end , each county and tribe will be allocated 95 percent of their initial
calendar year allocation. Counties and tribes will be allocated additional funds based on
performance as follows:

(1) deleted text begin for calendar year 2008 and yearly thereafter, deleted text end a county or tribe that achieves a
50 percent deleted text begin MFIP deleted text end new text begin TANF new text end participation rate or a five percentage point improvement over
the previous year's deleted text begin MFIP deleted text end new text begin TANF new text end participation rate under section 256J.751, subdivision 2,
clause (7), as averaged across deleted text begin the four quarterly measurements deleted text end new text begin 12 consecutive months new text end for
the most recent year for which the measurements are available, will receive an additional
allocation equal to 2.5 percent of its initial allocation; and

(2) deleted text begin for calendar years 2005 and thereafter, a county or tribe that performs above the
top of its annualized range of expected performance on the three-year self-support index
under section 256J.751, subdivision 2, clause (6), will receive an additional allocation
equal to five percent of its initial allocation; and deleted text end

deleted text begin (3) for calendar years 2005 and thereafter, deleted text end a county or tribe that performs within new text begin or
above new text end its range of expected performance on the annualized three-year self-support index
under section 256J.751, subdivision 2, clause (6), will receive an additional allocation
equal to 2.5 percent of its initial allocation; and

deleted text begin (4) for calendar years 2008 and thereafter, deleted text end new text begin (3) new text end a county or tribe that does not achieve
a 50 percent deleted text begin MFIP deleted text end new text begin TANF new text end participation rate or a five percentage point improvement over
the previous year's deleted text begin MFIP deleted text end new text begin TANF new text end participation rate under section 256J.751, subdivision 2,
clause (7), as averaged across deleted text begin the four quarterly measurements deleted text end new text begin 12 consecutive months new text end
for the most recent year for which the measurements are available, will not receive
an additional 2.5 percent of its initial allocation until after negotiating a multiyear
improvement plan with the commissioner; or

deleted text begin (5) for calendar years 2008 and thereafter, deleted text end new text begin (4) new text end a county or tribe that does not
perform within new text begin or above new text end its range of expected performance on the annualized three-year
self-support index under section 256J.751, subdivision 2, clause (6), will not receive an
additional allocation equal to 2.5 percent of its initial allocation until after negotiating a
multiyear improvement plan with the commissioner.

(b) new text begin For calendar year 2009 and yearly thereafter, new text end performance-based funds for a
federally approved tribal TANF program in which the state and tribe have in place a
contract under section 256.01, addressing consolidated funding, will be allocated as
follows:

(1) deleted text begin for calendar year 2006 and yearly thereafter, deleted text end a tribe that achieves the participation
rate approved in its federal TANF plan using the average of deleted text begin four quarterly measurements deleted text end new text begin
12 consecutive months new text end for the most recent year for which the measurements are available,
will receive an additional allocation equal to 2.5 percent of its initial allocation; and

(2) deleted text begin for calendar years 2006 and thereafter, a tribe that performs above the top of its
annualized range of expected performance on the three-year self-support index under
section 256J.751, subdivision 2, clause (6), will receive an additional allocation equal
to five percent of its initial allocation; or
deleted text end

deleted text begin (3) for calendar years 2006 and thereafter, deleted text end a tribe that performs within new text begin or above new text end its
range of expected performance on the annualized three-year self-support index under
section 256J.751, subdivision 2, clause (6), will receive an additional allocation equal
to 2.5 percent of its initial allocation; or

deleted text begin (4) for calendar year 2008 and yearly thereafter, deleted text end new text begin (3) new text end a tribe that does not achieve the
participation rate approved in its federal TANF plan using the average of deleted text begin four quarterly deleted text end
deleted text begin measurements deleted text end new text begin 12 consecutive months new text end for the most recent year for which the measurements
are available, will not receive an additional allocation equal to 2.5 percent of its initial
allocation until after negotiating a multiyear improvement plan with the commissioner; or

deleted text begin (5) for calendar year 2008 and yearly thereafter, deleted text end new text begin (4) new text end a tribe that does not perform
within new text begin or above new text end its range of expected performance on the annualized three-year
self-support index under section 256J.751, subdivision 2, clause (6), will not receive an
additional allocation equal to 2.5 percent until after negotiating a multiyear improvement
plan with the commissioner.

(c) Funds remaining unallocated after the performance-based allocations in
paragraph (a) are available to the commissioner for innovation projects under subdivision
5.

(d) (1) If available funds are insufficient to meet county and tribal allocations
under paragraph (a), the commissioner may make available for allocation funds that are
unobligated and available from the innovation projects through the end of the current
biennium.

(2) If after the application of clause (1) funds remain insufficient to meet county and
tribal allocations under paragraph (a), the commissioner must proportionally reduce the
allocation of each county and tribe with respect to their maximum allocation available
under paragraph (a).

Sec. 13.

Minnesota Statutes 2007 Supplement, section 256J.95, subdivision 3, is
amended to read:

Subd. 3.

Eligibility for diversionary work program.

(a) Except for the categories
of family units listed below, all family units who apply for cash benefits and who
meet MFIP eligibility as required in sections 256J.11 to 256J.15 are eligible and must
participate in the diversionary work program. Family units that are not eligible for the
diversionary work program include:

(1) child only cases;

(2) a single-parent family unit that includes a child under 12 weeks of age. A parent
is eligible for this exception once in a parent's lifetime and is not eligible if the parent
has already used the previously allowed child under age one exemption from MFIP
employment services;

(3) a minor parent without a high school diploma or its equivalent;

(4) an 18- or 19-year-old caregiver without a high school diploma or its equivalent
who chooses to have an employment plan with an education option;

(5) a caregiver age 60 or over;

(6) family units with a caregiver who received DWP benefits in the 12 months prior
to the month the family applied for DWP, except as provided in paragraph (c);

(7) family units with a caregiver who received MFIP within the 12 months prior to
the month the family unit applied for DWP;

(8) a family unit with a caregiver who received 60 or more months of TANF
assistance;

(9) a family unit with a caregiver who is disqualified from DWP or MFIP due to
fraud; and

(10) refugees new text begin and asylees new text end as defined in Code of Federal Regulations, title 45, deleted text begin chapter
IV deleted text end new text begin part 400, subpart d new text end , section deleted text begin 444.43 deleted text end new text begin 400.43 new text end , who arrived in the United States in the 12
months prior to the date of application for family cash assistance.

(b) A two-parent family must participate in DWP unless both caregivers meet the
criteria for an exception under paragraph (a), clauses (1) through (5), or the family unit
includes a parent who meets the criteria in paragraph (a), clause (6), (7), (8), deleted text begin or deleted text end (9) new text begin , or (10) new text end .

(c) Once DWP eligibility is determined, the four months run consecutively. If a
participant leaves the program for any reason and reapplies during the four-month period,
the county must redetermine eligibility for DWP.

Sec. 14.

Laws 2007, chapter 147, article 2, section 21, the effective date, is amended to
read:

EFFECTIVE DATE.

Subdivision 1 is effective February 1, 2008, and subdivision
2 is effective deleted text begin May 1, 2008 deleted text end new text begin March 1, 2009 new text end .